RIO

Best Ideas Newsletter holding Rio Tinto (click ticker for report: ) announced full year results for 2012 that were down substantially compared to 2011. Revenue tumbled 16% year-over-year to $50.9 billion, while earnings for the year were negative $1.61 per share, down substantially from earnings of $3.01 per share a year ago. However, most other operating metrics were much more positive, including the company’s decision to boost its dividend 15% to $1.67 per share—an annual yield of 2.9% at current levels. Valuentum subscribers know that Rio’s dividend is in good shape, even though operating results remained challenged (Image Source: RIO). Rio Tinto only swung to a loss due to an asset impairment charge, but underlying earnings and operating cash flow … Read more

Mining giant Rio Tinto reported better than expected first-half results. We’re huge fans of the miner given its cheap valuation.

Mining giant Rio Tinto () announced recently that it intends to command over 25% of additional global iron ore production, according to Alan Davies, the company’s President of International Operations. Davies added that the firm believes the Chinese construction story still has plenty of room to grow. After reviewing the firm’s corresponding presentation to this announcement, we think it’s clear that Rio Tinto, one of the world’s most diversified mining companies, sees true potential for long-term global economic growth thanks to wealth gains in India and China. In fact, Rio Tinto expects 3 billion people to urbanize over the next forty years, suggesting there will be no demand shortage for necessary building materials like iron ore. We think it’s important for investors to … Read more