How iron ore prices gave Rio Tinto shareholders a multi billion dollar pay day

Iron ore. Picture: Getty Images

Higher prices for its key commodities drove Rio Tinto’s massive $US3 billion return to shareholders.

Here’s the role iron ore, Rio’s biggest earner, played in underlying earnings:

Source: Rio Tinto

Rio reported sales revenue of $19.3 billion, $3.8 billion higher than 2016 first half, mainly due to higher average commodity prices.

Underlying earnings from iron ore were $3.25 billion, up 87% or $1.51 billion on the 2016 first half.

Achieved average price in the first half was $62.4 per wet metric tonne.

Here’s the gross revenue detail by division:

Source: Rio Tinto

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.