Rio Tinto ripped for 'corporate governance failures' by activist shareholder

  • Turquoise Hill Resources (TRQ) activist investor Pentwater Capital is again criticizing Rio Tinto (RIO) for "ongoing corporate governance breaches," alleging a conflict of interest involving Rio board member Ngaire Woods, Dean of Oxford University's Blavatnik School of Government.
  • Pentwater says Oxford has an "overly cozy relationship" with Rio Tinto and condemns Woods for donations the school of government has accepted from the company.
  • The hedge fund goes on to say that "it increasingly appears that Rio Tinto intends to saddle [Turquoise Hill] minority shareholders with the burden of financing the $2.3B of debt forgiveness that Rio has offered the Government of Mongolia" regarding the Oyu Tolgoi mine.
  • Rio shares are little changed today, but their 13% gain so far this year can be attributed mostly to the strength of iron ore prices, as well as flows out of BHP in London as its rival prepares to leave the FTSE, Jefferies analysts say.
  • "We prefer pure-play copper and aluminum producers over iron ore miners, but we do believe iron ore and Rio can continue to outperform in the near term," Jefferies says.
  • Helped in part by heavy rains that have disrupted Brazilian supply, iron ore has rallied to its highest prices in three months.

    Over the current book year the total revenue will be 62.45 billion GBp (consensus estimates). This is quite more than 2021's revenue of 44.61 billion GBp.

    Historical revenues and results Rio Tinto plus estimates 2021

    aandelenanalyse

    The analysts expect for 2021 a net profit of 21.71 billion GBp. The majority of the analysts expects for this year a profit per share of 1340 GBp. The price/earnings-ratio therefore equals 4.22.

    Huge dividend Rio Tinto

    Per share the analysts anticipate on a dividend of 1025 GBp per share. Thus the dividend yield equals 18.12 percent. The average dividend yield of the mining companies is a poor 0.81 percent.

    Recent target prices around 5240 GBp

    The latest 3 recommendations for the mining company were provided by JP Morgan, Barclays and Liberum.

    Rio Tinto 's market capitalization is based on the number of outstanding shares around 7070.82 billion GBp. 1

    At 17.40 the stock trades 1.24 percent higher at 5657 GBp.

    Historical stock prices Rio Tinto

    fundamental data riotinto

    ValueSpectrum.com News Wire & Equity Research: +31 084-0032-842
    news@valuespectrum.com

    Copyright analist.nl B.V.
    All rights reserved. Any redistribution, duplication or archiving prohibited. analist.nl doesn't warrant the accuracy of any News Content provided and shall not be liable for any errors, inaccuracies or for any actions taken in reliance thereon.