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.