Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 378

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 378
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 10% increase in forecast electricity prices over the remaining term of the contracts would result in a US$ 499million increase in fair value and a 10% decrease in forecast electricity prices would result in a US$ 500million decrease in fair value. To value long-term aluminium embedded power derivatives, we use unobservable inputs when the term of the derivative extends beyond observable market prices. Changing the level 3 inputs to reasonably possible alternative assumptions does not change the fair value significantly, taking into account the expected remaining term of contracts for either reported period. The fair value of these derivatives is a net liability of US$ 132million at 31 December 2024 ( 2023 : US$ 186million ).

| Annual Report on Form 20-F 2024 | 207 | riotinto.com |

Financial statements | Notes to the consolidated financial statements

24 Financial instruments and risk management continued

| Impact of climate change on our business - coal royalty receivablesAt31 December 2024, royalty receivables include amounts arising from our divested coal businesses with a carrying value ofUS$252million(2023:US$214million). These are classified as “Other investments, including loans” within note 23. The fair values are determined usinglevel 3 unobservable inputs. These royalty receivables includeUS$96millionfrom forecast production beyond2030. These have not beenadjusted for potential changes in production rates that could occur due to climate change targets impacting the operator.The main unobservable input is the long-term coal price used over the life of these royalty receivables. A15%increase in the coal spot pricewould result in aUS$24millionincrease (2023:US$64million) in the carrying value. A15%decrease in the coal spot price would result in aUS$61milliondecrease (2023:US$39million) in the carrying value. We have used a15%assumption to calculate our exposure as itrepresents the annual coal price movement that we deem to be reasonably probable (on an annual basis over the long run). |

Fair values disclosure of financial instruments

The following table shows the carrying amounts and fair values of our borrowings including those which are not carried at an amount which

approximates their fair value at 31 December. The fair values of some of our financial instruments approximate their carrying values because of

their short maturity, or because they carry floating rates of interest.

|                                         |              2024 |               |