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One of the world’s biggest mining companies, Rio Tinto (ASX:RIO) released their HY2021 results.

RIO’s earnings (EBITDA) surged 118% to US$21 billion, due to price rises in iron ore, aluminium, copper and gold.

Net cash rose to US$3.1 billion as the company paid less tax than expected. RIO declared to pay AUD$7.60 dividend per share. This implies RIO will pay out a record 75% to shareholders, beating market expectations.

RIO currently equates 82% of its revenue to iron ore.

RIO committed US$2.4 billion towards a battery grade lithium carbonate project in Serbia. This will be the largest source of lithium in Europe. Construction on the project will commence next year and production will begin in 2026.

RIO’s full year guidance remains on track, with no net debt.

RIO’s results are highly dependent on the iron ore price. Most investment houses expect the iron ore price to halve next year. RIO may therefore see a pull back.

RIO shares have risen 19% this year to $132.27.

RIO is a BUY stock for Citi ($135 target), a HOLD for Morgan Stanley ($126 target) and a SELL for UBS ($104 target).