So far this earnings season, large miners are paying out their lowest dividends in years, as mineral prices slip and they need to retain cash for their massive development projects, while trying to keep a lid on costs.
Rio Tinto, Anglo American and Glencore have all reported lower half year earnings, with BHP expected to continue the trend when it reports on August 19.
After years of strong China-driven profits backed by Covid-19- and Russia-linked supply snags, they are now operating against a backdrop of lower profits, high capital spending plans, or a full-scale restructuring in the case of Anglo American.
That is capping what the miners are willing to return to shareholders, analysts and fund managers said.
Prices of key commodities iron ore and coal have dropped around 13% since the start of the year. Miners are instead doubling down on projects for copper, which is up 8% this year on expected…
