Rio Tinto (RIO.L) May Reinstate Dividend After Halving Debt


Sunday, February 7th, 2010

Reports are Rio Tinto (RIO.L) has a good chance of reinstating its dividend after it is expected to announce it has paid down half of its debt load.

After acquiring the Canadian aluminium group Alcan, Rio Tinto had 24.9 billion pounds of debt on its books, about half of which is now paid off.

Under normal circumstances the mining giant would have serviced the debt already, but the global recession and tight credit markets kept it from doing so.

After selling off a number of its assets recently, sources say the debt has been reduced by over 10 billion pounds during 2009. Rio Tinto has evidently far exceeded that goal, which has brought expectations of about the debt being reduced by half.

The company is expected to make the announcement and confirmation during its annual report on this coming Thursday.



Article by Gary B

The views expressed are the subjective opinion of the article's author and not of FinancialAdvisory.com



Tags: british business , rio tinto

Related Articles
Britain Says No Subsidies for New Nuclear Plants
Opposition to European Union Regulation of Hedge Funds and Private Equity Firms Growing
Nyrstar May Forego Expanding in Australia Because of Super Tax
Has Britain Really Emerged From the Recession?
World Steel Association Furious Over BHP Billiton (ASE:BHP) and Rio Tinto (TSE:RIO) and Vale SA Contract Changes
British Opposition Leader David Cameron Says Labour Party on Wrong Side of Workers and Business
Australian Foreign Minister Stephen Smith Says Verdict against Rio Tinto's (ASE:RIO) 'Hu' Could Harm Business Ties
British Space Agency About to Launch
Business Investment in U.K. Plunges in Fourth Quarter
Rio Tinto (ASE:RIO) Australian Executive Confesses to Accepting Bribes in China
China Warns Australia on Rio Tinto (LON:RIO) Case
Britain's Exports Drop as Trade Deficit Expands
British Economic Recovery? What British Recovery?
Kraft Foods (NYSE:KFT) Under Fire from British Regulators
British Government Trying to Downplay Tax Burden on Businesses
Give Your Opinion
Where is head office of Allahabad Bank?
Share a simple answer to help inform others:
Specific to any country?
First name / Alias

• Your answer will be posted here:
Where is head office of Allahabad Bank?
Financial Questions & Answers
Ask A Question
Get opinions on what you want to know:
Specific to any country?