Stock Spotlight: Rio Tinto delivers record results but remains an ESG risk

Profit doubled since 2020

The world’s second largest metals and mining corporation, Rio Tinto, delivered record results last week, but the firm remains under the ESG spotlight for recent scandals and its future role in a low carbon world.

Underlying profit after tax came in at $21bn for 2021, more than double the 2020 figure, while revenues jumped 42% to $63bn as soaring demand combined with constrained supply to send commodity prices skywards. Alan Dobbie, co-fund manager of the Rathbone Income fund, added that "good cost control and capital discipline" benefitted Rio Tinto, allowing the firm to turn elevated metal prices into "into high cash profits, a net cash balance sheet and greater shareholder returns". He noted that while buoyant iron ore prices were a significant tailwind for the firm, investors must be aware ...