Cash is King in Mining Services

For the past decade mining and mining services business have been showing accounting profits but no cashflow. Rio Tinto's excellent recent result yesterday was different. Profit was good, but cash was even better. Dividends were even increased. Dividends! Who would have thought it?

Has something changed? It certainly has, and the consequences should be good for shareholders. In this video recorded with Livewire I explain what's changed and why accounting profits are less important than cashflow.


Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Join the Conversation...

There are comments posted so far.

If you'd like to join this conversation, please login or sign up here

Related Articles