Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 369

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 369
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 the market.

Our Treasury and Commercial teams manage the following key economic risks generated from our operations:

– capital and liquidity risk

– credit risk

– interest rate risk

– commodity price risk

– foreign exchange risk.

These teams operate under a strong control environment, within approved limits.

(i) Capital and liquidity risk

Our capital and liquidity risk arises from the possibility that we may not be able to settle or meet our obligations as they fall due. Refer to our

capital and liquidity section on page 197 .

As disclosed in note 18, under the supplier finance arrangements, the Group makes payments to participating banks on the same date as stated

on the vendor’s invoice, and as such these arrangements do not give rise to additional liquidity risk.

(ii) Credit risk

Credit risk is the risk that our customers, or institutions that we hold investments with, are unable to meet their contractual obligations. We

are exposed to credit risk in our operating activities (primarily from customer trade receivables); and from our investing activities that include

government securities (primarily US Government), corporate and asset-backed securities, reverse repurchase agreements, money market

funds, and balances with banks and financial institutions. Refer to note 17, note 22 and note 23 for an understanding of the size of, and the

credit risk related to, each balance.

(iii) Interest rate risk Our interest rate management policy is generally to borrow and invest at floating interest rates. However, we may elect to maintain a proportion of fixed-rate funding after considering market conditions, the cost and form of funding and other related factors. After the impact of hedging, 76% ( 2023 : 68% ) of our borrowings (including leases) were at floating rates. To understand how we manage interest rate risk, refer to note 20.

| Annual Report on Form 20-F 2024 | 203 | riotinto.com |

Financial statements | Notes to the consolidated financial statements

24 Financial instruments and risk management continued Sensitivity to interest rate changes Based on our floating rate financial instruments outstanding at 31 December 2024 , the effect on our net earnings of a 100 basis point increase in US dollar Secured Overnight Financing Rate (SOFR) interest rates, with all other variables held constant, would be an expense of US$ 23million ( 2023 : US$ 5million ) . This reflects the net debt position in 2024 and 2023 . We are also exposed to interest rate volatility within shareholders