Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 372

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 372
---
 |     890 |           169 |                  711 |                   170 |   1,050 |
| Average hedged rate (US$ per tonne) |         2,382 |                2,498 | —                     |   2,474 |         2,331 |                2,452 |                 2,564 |   2,449 |

| Annual Report on Form 20-F 2024 | 204 | riotinto.com |

Financial statements | Notes to the consolidated financial statements

24 Financial instruments and risk management continued

The impact on our financial statements of these hedging instruments and hedging items are:

|      | Aluminium embedded derivatives separatedfrom the power contract(hedging instrument)(a) |                    |                                      | Highly probable forecast aluminium sales (hedged item) |                                      |                                                      |                                                         |                                                                  |
|      |                                                                            NominalUS$m | CarryingamountUS$m | Change in fairvalue in theperiodUS$m |                           Cash flowhedgereserve(b)US$m | Change in fairvalue inthe periodUS$m | Total hedginggains/(losses)recognisedin reservesUS$m | Hedgeineffective-ness in theperiod(losses)/gains(c)US$m | Losses/(gains)reclassifiedfrom reservesto incomestatement(d)US$m |
| 2024 |                                                                                    890 |               -113 |                                   42 |                                                    -39 |                                  -26 |                                                   42 |                                                       – |                                                                5 |
| 2023 |                                                                                  1,050 |               -174 |                                    3 |                                                    -91 |                                  -16 |                                                   -1 |                                                       4 |                                                               -2 |

(a) Aluminium embedded derivatives (forward contracts and options) are contained within certain aluminium smelter electricity purchase contracts. The carrying amount of US$ 113million ( 2023 :

US$ 174million ) is shown within “Other financial assets and liabilities”.

(b) The difference between this amount and the total cash flow hedge reserve of the Group (shown in note 35) relates to our cash flow hedge on the sterling bond (refer to interest rate risk

section).

(c) Hedge ineffectiveness is included in “net operating costs” (within “raw materials, consumables, repairs and maintenance” - refer to note 7) in the income statement.

(d) On realisation of the hedge, realised amounts are reclassified from reserves to consolidated sales revenue in the income statement.

There