Rio Tinto has proven its ability to make money even during weak market conditions. It has a strong balance sheet and routinely sells noncore mines to reallocate cash to better opportunities. For example, in recent years, it has exited the coal mining business due to the sector’s dwindling prospects amid climate change concerns.
Meanwhile, in late 2024, Rio Tinto approved the $2.5 billion Rincon project in Argentina, its first commercial-scale lithium operation. It followed that up in early 2025 by closing its $6.7 billion acquisition of Arcadium Lithium. The deal establishes the mining giant as a major lithium producer. The company also regularly invests money to expand its best mines.
Rio Tinto is another mining company that pays dividends to shareholders and repurchases its own shares throughout the economic cycle. It tries to pay 40% to 60% of its cash flow in dividends, with payments varying each period depending on its earnings.