Rio Tinto raises the interim dividend 43 percent to 3.4 billion dollars

Rio Tinto has declared an interim dividend of 3.4 billion dollars for the first half of 2026, equivalent to 211.0 US cents per share. That is a rise of 43 percent against the previous interim payment. The payout ratio of 50 percent stays unchanged.

That was made possible by a jump in cash flow. Free cash flow rose 75 percent. Underlying earnings before interest, tax, depreciation and amortisation gained 28 percent to 14.8 billion dollars.

The figures were published on 29 July. The payment date is 24 September.

The short version

• Rio Tinto declared an interim dividend of 3.4 billion dollars or 211.0 US cents per share for the first half of 2026, a rise of 43 percent.
• Underlying earnings before interest, tax, depreciation and amortisation rose 28 percent to 14.8 billion dollars, and free cash flow 75 percent.
• Copper, aluminium and lithium now account for just under 60 percent of total operating earnings.

Copper carries the result

Broken down by division it shows where the increase comes from. Earnings before interest, tax, depreciation and amortisation in copper rose 84 percent to 5.7 billion dollars. Aluminium and lithium gained 38 percent to 3.3 billion dollars.

Iron ore stayed largely unchanged at 6.8 billion dollars, even though production in the Pilbara region of Western Australia reached its highest half year level since the record year of 2018. Production there grew six percent.

Copper, aluminium and lithium now account for just under 60 percent of total operating earnings. The weight of the group is therefore shifting away from iron ore, which was the central source of earnings for decades.

Copper equivalent production grew three percent in the half year. In the first quarter the increase had still been nine percent.

Costs in copper cut sharply

One figure from the production report deserves particular attention. Cost guidance for copper was cut from 65 to 75 US cents a pound to 30 to 50 cents.

That was made possible by the planned ramp up of the Oyu Tolgoi underground mine in Mongolia, where production rose 31 percent in the first half. At mining operations, unit costs fall as volume rises, because a large part of the outlay does not depend on the amount extracted.

From the productivity programme 870 million dollars were realised by the end of June. By the end of the year the group targets an annual run rate of 1.8 billion dollars.

In addition capital releases of five to ten billion dollars are planned through sales and infrastructure projects.

Simandou delivers its first ore

Among the growth projects the group names several milestones. From the Simandou project in Guinea high grade iron ore was sold for the first time. Construction of the mine and of the port infrastructure is each more than three quarters complete, and the rail line was fully commissioned in the first quarter.

In lithium production started at two Argentine sites earlier than planned. Lithium volumes rose 53 percent against the same half year last year.

Investment is to run at up to eleven billion dollars in each of 2026 and 2027.

Two fatalities in the half year

Chief executive Simon Trott pointed in the quarterly report to two fatal workplace accidents, one at Simandou and one at Kennecott in the United States. He described that as a clear reminder that every employee must come home safely after every shift.

The injury frequency rate stood at 0.40 per reference unit.

Net debt fell by 0.3 billion to 14.1 billion dollars in the half year. Dividends of 4.2 billion dollars from the previous year accounts were paid out in that period.

Emissions from own operations and purchased energy were 15.9 million tonnes of carbon dioxide equivalent, a fall of 14 percent against the 2018 base year. A halving by 2030 is targeted.

Production guidance for the full year stayed unchanged. The most recent analyst rating is a hold at a price target of 82 pounds.

Frequently asked questions

Where does the jump in profit come from

From copper. Earnings before interest, tax, depreciation and amortisation there rose 84 percent to 5.7 billion dollars. Aluminium and lithium gained 38 percent to 3.3 billion dollars, while iron ore stayed largely unchanged at 6.8 billion dollars.

Why did costs in copper fall

Cost guidance was cut from 65 to 75 US cents a pound to 30 to 50 cents. That was made possible by the planned ramp up of the Oyu Tolgoi underground mine in Mongolia, where production rose 31 percent. At mining operations, unit costs fall as volume rises.

How far along is the Simandou project

From the project in Guinea high grade iron ore was sold for the first time. Construction of the mine and of the port infrastructure is each more than three quarters complete, and the rail line was fully commissioned in the first quarter.

This analysis is for information only and is not investment advice.