Company: MT
Filing Date: 2025-03-10
Form Type: 20-F
Source: 0001243429-25-000017
Chunk: 428

Company: ArcelorMittal
Filing Date: 2025-03-10
Form: 20-F
Chunk 428
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observable market inputs such as foreign exchange rates,

commodity prices, swap rates and interest rates.

Derivative financial instruments classified as Level 3:

The fair valuation of Level 3 derivative instruments is

established at each reporting date and compared to the prior

period. ArcelorMittal’s valuation policies for Level 3 derivatives

are an integral part of its internal control procedures and have

been reviewed and approved according to the Company’s

principles for establishing such procedures. In particular, such

procedures address the accuracy and reliability of input data,

the accuracy of the valuation model and the knowledge of the

staff performing the valuations .

Electricity option

ArcelorMittal and an electricity supplier entered into a multi-

buyer power supply contract on the French market. Other clients

of this contract are committed to purchase electricity from the

supplier with opt-out rights to be exercised in 2029 for

2030-2034 delivery period. The opt-out rights for 2025-2029

delivery period expired unexercised in 2024. The Company is

committed to acquire up to 51% of the opt-out volumes.

The fair value of the option is based on the Black-Scholes

formula model. Observable input data used in the valuation

include euro zero coupon yield curve and electricity forward

prices for tenors quoted by the European Energy Exchange

(EEX). A 10% increase and decrease in electricity forward prices

would result in a 11% decrease and 12% increase, respectively,

of the fair value of the option at December 31, 2024.

The following table summarizes the reconciliation of the fair

value of the financial instrument classified as Level 3:

| Balance as of December 31, 2022 |     | Electricity option 
                  — |
|:--------------------------------|:----|-------------------:|
| Change in fair value            |     |                -82 |
| Balance as of December 31, 2023 |     |                -82 |
| Change in fair value            |     |                 50 |
| Balance as of December 31, 2024 |     |                -32 |

The fair value movement relating to the Level 3 derivative

instrument is recognized in financing costs-net in the

consolidated statements of operations .

6.1.6 Other non-derivative financial assets and liabilities Other non-derivative financial assets and liabilities include cash and cash equivalents and restricted cash (see note 6.1.3