Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 181

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 181
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-quality reserves).Risk B: Group material major hazardor cyber riskScenario assumptions: A catastrophicevent occurs, resulting from a majoroperational failure such as a tailings orwater storage facility failure, extremeweather event, underground orgeotechnical event or a cyber event thatimpacts operational systems. Itassumes multiple fatalities, cessation ofoperations and significant financialimpacts. We have assumed 3 suchevents occur within the assessmentperiod, each with significant but variedimpacts. The scenario relates tomaterial risks 1 (Preventing loss ofoperational control that may lead topotential fatalities, permanentdisablements, or material productiondisruption) and 12 (Preventing materialbusiness disruption and data breachesdue to cyber events).Risk C: Delivery of our growthprojectsScenario assumptions: A risk driven byevolving societal expectations andchanging laws affecting the timelines fordelivering sustaining or growth projects.We have assumed an impact on our near-term key projects and consideredavailable alternatives. The financial impactassumed here is in addition to any non-financial impact, such as reputationalharm. The scenario relates material risks3 (Building trusted relationships withcommunities), 6 (Building trustedrelationships with Indigenous Peoples)and 7 (Delivering on our growth projects). |

Results of assessment We quantify the expected financial impact of each risk based on internal macroeconomic and business analysis, as well as internal and external benchmarking on similar risks. We apply a probabilistic approach to quantify risks and impacts where relevant. The first 5 years of the Group’s business plan has been stress-tested for each risk to assess the impact on the Group’s longer-term viability, including whether additional financing facilities would be required. In addition to liquidity and solvency, the assessment considered other financial performance metrics and dividend payments. These metrics are subject to robust stress tests. The most “severe” scenario, albeit unlikely, considers the financial impact of all 3 risks materialising in the 5-year period. Without management action, this scenario would create both an immediate and a prolonged severe impact. However, we have a suite of management actions available to preserve resilience through the period of assessment, including accessing lines of credit, reducing organic and inorganic growth capital expenditure, and raising capital. Our financial flexibility could be limited during the peak of the crisis. The viability of the Group under all the scenarios tested remained sound. The resilience of the Group’s business model is largely underpinned by 4 factors: – the competitive position and diversification of our commodities portfolio – our