Feb 12 (Reuters) - Rio Tinto Ltd (RIO) :

  • Rio Tinto 2015 full year results (RIO)
  • FY underlying earnings $4.5 billion versus $9.31 billion a year ago
  • Final dividend of 107.5 US cents per share
  • Capital expenditure expected to be around $4.0 billion in 2016
  • Continuing to target 20 to 30 per cent gearing ratio through the cycle.
  • Underlying effective tax rate of approximately 27 to 30 per cent expected in 2016.
  • Operating cash cost improvements (including exploration and evaluation savings) of $1 billion (pre-tax) expected in 2016
  • Production guidance is unchanged from the fourth quarter operations review.
  • Operating cash cost improvements additional goal of $1 billion (pre-tax) in 2017
  • Net debt as at December 31, 2015 $13.78 billion versus $12.5 billion a year ago
  • FY net loss $866 million versus net earnings of $6.53 billion a year ago
  • Sees underlying effective tax rate of approximately 27 to 30 per cent expected in 2016
  • Says "for 2016, we intend that the full year dividend will not be less than 110 US cents per share"
  • Believes that maintaining the current progressive dividend policy would constrain the business
  • Expects total cash returns to shareholders over longer term to be in range of 40 to 60 percent of underlying earnings in aggregate through the cycle
  • Believes maintaining the current progressive dividend policy would act against shareholders' long-term interests
  • Replacing the progressive dividend policy with a more flexible approach
  • Low capital paths being pursued with spend focused around silvergrass and Oyu Tolgoi underground