Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF) saw profits fall in 2023 as commodity prices faltered and supply growth exceeded demand.
Underlying pre-tax earnings fell 12% to US$11.8 billion as lower prices and inflation ate into profits, the mining giant reported on Wednesday.
A dividend of US$2.58 per share was declared though, higher than 2022’s US$2.25 and better than consensus estimates for US$2.47.
“We remain focused on cost control, in particular maintaining discipline on fixed costs, which are expected to be broadly flat in 2024,” the company said.
“While inflation has eased, we continued to see lag effects in its impact on our third-party costs, such as contractor rates, consumables and some raw materials.”
Rio Tinto added inflation could hit production costs at Pilbara in Western Australia, where the company produces most of its iron ore, over the coming year.
Production from Pilbara should rise over the year from 331.8 million tonnes in 2023.
Shares dipped 0.8% to 5,187p.