Wednesday, September 30, 2015

Rio Tinto Maintains Thrust On Non-Core Asset Divestments As A Response To Weak Commodity Prices

Forbes - Markets
Rio Tinto Maintains Thrust On Non-Core Asset Divestments As A Response To Weak Commodity Prices
This latest stake sale is a part of the company’s efforts to sell off non-core assets in order to shore up its balance sheet during a period of low commodity prices. All the major commodities sold by Rio Tinto, particularly iron ore, which constitutes the cornerstone of the company’s business, are currently characterized by weak pricing environments. Given the prevailing weakness in pricing, these non-core asset sales will help Rio Tinto boost cash flows and manage its debt, affording it greater flexibility to operate during a low point in the commodity cycle.

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