Rio Tinto Ltd
(ASX:RIO) is facing calls to return more money to shareholders, after the global miner last week posted a record full year profit.
Though Rio has also pledged to launch a $5 billion share buyback, The Australian says that some analysts have even called for a $US15 billion buyback.
The paper reports that the miners huge 2010 cashflow has fuelled expectations that shareholders would receive a greater return.
Citi analyst Clarke Wilkins says that buying back 3 per cent of stock over two years is not aggressive and has the potential to be upsized.
Responding to the calls, Rio’s chief financial officer Guy Elliot says that investors should not to expect Rio to increase the buyback, adding that the company is committed to having a balance between debt reduction, investments and capital returns.
In the year to 31 December 2010, Rio Tinto reported a net profit of $14.9 billion.
