Rio Tinto: Hold the Line on Dual-Listing!

Ladies and gentlemen, buckle up! We're diving headfirst into the Rio Tinto saga, where the mining giant is urging shareholders to reject a resolution that could shake up its dual-listed structure. This is a battle for the ages, and you need to know where to stand. Let's break it down!

The Battle Lines Are Drawn

Palliser Capital, a London-based hedge fund, is pushing hard for Rio Tinto to unify its corporate structure into a single Australian-domiciled company. They claim that the current dual listing in London and Sydney is eroding shareholder value. But Rio Tinto isn't having it! The board has conducted a "robust and comprehensive review" with leading external advisers and concluded that unifying the structure would be value-destructive. They're calling it "unfounded and misleading" to say that the current setup has cost investors $50 billion.

The Numbers Don't Lie

Let's look at the data. Rio Tinto has outperformed the FTSE100 and ASX200 since the dual-listed structure was formed in 1995. That's a solid 28 years of success! The board argues that the rationale for unifying DLC structures at other companies, like BHP, doesn't apply to Rio Tinto. They have a different geographic asset mix, growth outlook, and tax profile. Plus, a far greater proportion of Rio Tinto's shares are held through the plc company, making unification a complex and costly affair.



The Risks Are Real

Unifying the structure could cost Rio Tinto in the "mid-single-digit billions of dollars" in tax costs alone. Palliser Capital estimates one-off transaction costs of roughly $450 million and additional ongoing tax costs of about $145 million per year. That's a hefty price tag for a move that Rio Tinto's board believes would be value-destructive.

The Board's Stance

The board has engaged extensively with Palliser Capital and other shareholders, whose views have been fully taken into account. They've met with Palliser Capital seven times in 2024 and 2025, including the Chair, CEO, and CFO. The board believes that a further review of this topic would be duplicative and distract from the company's strategic objectives, which include increasing output of commodities essential for the energy transition and enhancing existing operations while reducing environmental impact.

The Call to Action

So, what do you do? You need to vote against this resolution! Rio Tinto's board has done its homework, and the data supports their stance. Unifying the structure could be a costly mistake that erodes shareholder value. Don't let Palliser Capital's claims sway you—stay the course with Rio Tinto's proven strategy.

The Bottom Line

This is a no-brainer! Rio Tinto's dual-listed structure has been a winner for shareholders, and the board's comprehensive review backs that up. Don't miss out on this opportunity to hold the line and support a company that's delivering real value. Vote against the resolution and keep Rio Tinto on its winning path!

BOO-YAH! This stock's a winner!