Third successive record year for Rio Tinto

13 April 2007

Solid global demand and high prices coupled with a strong operating performance in challenging conditions resulted in a third successive year of records earnings and cash flow, the chairman of Rio Tinto Paul Skinner told the annual meeting of shareholders in London today.

“Our performance reflects the underlying quality of our asset portfolio which has proved robust at all points of the economic cycle,” he said. “In 2006, we achieved underlying earnings of more than seven billion dollars which was 48 per cent above 2005.

“Cash flow increased by 35 per cent to 11 billion dollars. These results allowed us to increase and rebase the dividend by a sizeable 30 per cent, to total 104 cents per share.

“Rio Tinto dividends have increased significantly since the dual listed merger in 1995. The aim of our progressive dividend policy is to increase the dollar value of ordinary dividends continuously over time, without cutting them in economic downturns.”

Rio Tinto CEO Leigh Clifford said that the strong balance sheet allowed the company to invest heavily in growth and at the same time return capital to shareholders.

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