Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 370

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 370
---
’ equity. This is because we have designated some cross-currency interest rate swaps to be in a cash flow hedge relationship with our 2029 British pound sterling (GBP) loan. As we receive fixed GBP interest and pay fixed USD interest, any change in the GBP interest rate or the USD interest rate will have an impact on the fair value of the derivative within shareholders’ equity. With all factors remaining constant, a 100 basis point increase in interest rates in each of the currencies in isolation would impact equity, before tax, by a charge of US$ 27million ( 2023 : US$ 33million ) for GBP and a credit of US$ 35million ( 2023 : US$ 42million ) for USD. A 100 basis point decrease would have broadly the same impact in the opposite direction. (iv) Commodity price risk Our broad commodity base means our exposure to commodity prices is diversified. Our normal policy is to sell our products at prevailing market prices. For certain physical commodity transactions for which the price was fixed at the contract date, we enter into derivatives to achieve the prevailing market prices at the point of revenue recognition. We do not generally consider that using derivatives to fix commodity prices would provide a long-term benefit to our shareholders. Exceptions to this rule are subject to limits, and to defined market risk tolerances and internal controls. Substantially all iron ore and aluminium sales are reflected at final prices at each reporting period. Final prices for copper concentrate, however, are normally determined between 30 and 180 days after delivery to our customer. At 31 December 2024 , we had 186million pounds of copper sales ( 31 December 2023 : 92million pounds) which were provisionally priced at US 397 cents per pound ( 2023 : US 387 cents per pound). The final price of these sales will be determined during the first half of 2025 . A 10% change in the price of copper realised on the provisionally priced sales, with all other factors held constant, would increase or reduce net earnings by US$ 46million ( 2023 : US$ 22million ). Power costs represent a significant portion of costs in our aluminium business and, therefore, we are exposed to fluctuations in power prices. To mitigate our exposure to changes in the relationship between aluminium prices and power prices, we have a number of electricity purchase contracts that are directly linked to the daily official LME cash ask price for high-grade aluminium (LME price) and to