The Rio Tinto Limited (ASX: RIO) share price is in the red today.
The mining giant's share price is currently trading at $96.04, a 1.29% fall. For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) is down 1.29% today.
Rio Tinto is not the only ASX mining giant falling today. BHP Group Ltd (ASX: BHP) shares are also down 1.43%, while Fortescue Metals Group Limited (ASX: FMG) shares are 1.84% in the red.
Let's take a look at what's happening at Rio Tinto.
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Rio completes royalty sale
Rio Tinto has finalised the sale of the Cortez Royalty in Nevada for $525 million in cash to RG Royalties LLC. RG Royalties is a wholly-owned subsidiary of Royal Gold Inc (NASDAQ: RGLD).
This is a 1.2% production royalty on the Cortez gold mine, operated by Nevada Gold Mines and the Formile project.
Nevada Gold Mines is a joint venture between Barrick Gold Corp (NYSE: GOLD) and Newmont Corporation (NYSE: NEM), while the Formile project is 100% owned by Barrick Gold.
Commenting on the news, Rio Tinto chief financial officer Peter Cunningham said:
This transaction unlocks hidden value from our portfolio and releases cash immediately.
Rio Tinto had held the royalty as part of the sale of its 40% interest in the Cortez Gold Complex to Barrick Gold in 2008.
Last week, Rio Tinto reported revenue had fallen 10% to US$29,775 million in its half year results. Underlying EBITDA fell 26% for the six months ended 30 June. Rio declared a dividend of 276 US cents per share, lower than expectations.
Rio Tinto share price snapshot
The Rio Tinto share price has fallen nearly 28% in the past year, while it has shed more than 4$ year to date.
For perspective, the S&P/ASX 200 Materials Index has fallen nearly 16% in the last year.
Rio Tinto has a market capitalisation of nearly $36 billion based on the current share price
