Rio and BHP shareholders should enjoy the cash deluge while it lasts
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July 28, 2021 11.57am
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Rio Tinto and BHP shareholders are about to be awash in cash, again but the two big diversified miners will be looking beyond the current iron ore price that is flooding them with that cash towards the more threatening future moving rapidly towards them.
With an iron ore price holding above $US200 a tonne the companies are generating cash well beyond their internal requirements, with the capital allocation policies they adopted after the last commodities supercycle ended almost dictating that they return that surplus cash to shareholders.
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