Rio Tinto CEO Not 'Overly Concerned' About Iron Ore Tumble

Rio Tinto CEO Not 'Overly Concerned' About Iron Ore Tumble

Assessment

Interactive Video

Business

University

Hard

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The video discusses the significant rise in iron ore prices in the first half of the year and the subsequent market expectations for a decline. It highlights the company's strong performance metrics, including a 47% AB margin and a 23% return on capital employed. Despite market concerns, the company emphasizes its robust asset portfolio, disciplined capital allocation, and strong balance sheet. Over the past three years, it has generated substantial cash and returned significant amounts to shareholders, reinforcing confidence in its financial strategy and future outlook.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the return on capital employed in the first half of the year?

23%

50%

72%

47%

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How has the company performed over the last 20 years in terms of EBD margins?

Exactly 50%

More than 70%

More than 50%

Less than 50%

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the company's message to market participants concerned about its stock?

Focus on short-term gains

Trust in the asset portfolio and capital discipline

Ignore the company's performance

Sell the stock immediately

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How much cash did the company generate from operations in the last three years?

$32 billion

$34 billion

$29 billion

$45 billion

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the company's approach to capital allocation?

Minimal and conservative

Random and unplanned

Disciplined and focused on returns

Aggressive and risky