Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 30

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 30
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 the capitalisation of exploration and evaluation expenditure for Simandou from October 2023. 2023 also included a gain on disposal of 55% of our interest in the La Granja copper project in Peru ($0.2 billion, pre-tax). Net earnings The principal factors explaining the movements in underlying earnings and net earnings are set out below.

|                                                                            | US$bn |
| 2023 net earnings                                                          |  10.1 |
| Changes in underlying EBITDA (see above)                                   |  -0.6 |
| Increase in depreciation and amortisation (pre-tax) in underlying earnings |  -0.8 |
| Decrease in interest and finance items (pre-tax) in underlying earnings    |   0.3 |
| Decrease in tax on underlying earnings                                     |   0.5 |
| Increase in underlying earnings attributable to outside interests          |  -0.3 |
| Total changes in underlying earnings                                       |  -0.9 |
| Changes in items excluded from underlying earnings (see below)             |   2.4 |
| Movement in impairment charges net of reversals                            |   0.1 |
| Movement from consolidation and disposal of interests in businesses        |   0.9 |
| Movement in closure estimates (non-operating and fully impaired sites)     |   1.0 |
| Movement in exchange differences and gains/losses on derivatives           |   0.5 |
| Other                                                                      |  -0.1 |
| 2024 net earnings                                                          |  11.6 |

Financial figures are rounded to the nearest $100 million, hence small differences may result in the totals. Increase in depreciation Higher depreciation was due to an increase in capital expenditure in prior years, production growth at Kennecott and lower capitalised depreciation, which resulted in underlying earnings being $0.8 billion lower than 2023. Modest decrease in tax on underlying earnings The effective tax rate on underlying earnings of 28% (2023: 30%) primarily reflects the mix of profits across different jurisdictions. This, coupled with lower profits, resulted in tax on underlying earnings being $0.5 billion lower than 2023. Increase in underlying earnings attributable to outside interests In 2024, expenditure at Simandou was capitalised whereas until September 2023 it was expensed, resulting in a year-on-year decrease in costs attributable to outside interests following the capitalisation.

| Annual Report on Form 20-F 2024 |