Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 373

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 373
---
 was no cost of hedging recognised in 2024 ( 2023 : no cost) relating to this hedging relationship.

Sensitivity analysis

Our commodity derivatives are impacted by changes in market prices. The table below summarises the impact that changes in aluminium

market prices have on aluminium forward and option contracts embedded in power supply agreements outstanding at 31 December 2024 . Any

change in price will result in an offsetting change in our future earnings.

|                        | Change inmarket prices | 2024US$m | 2023US$m |
| Effect on net earnings |                   +10% |      -42 |      -52 |
| (10)%                  |                     69 |       67 |          |
| Effect on equity       |                   +10% |      -68 |      -81 |
| (10)%                  |                     42 |       70 |          |

We exclude our “own use contracts” from this sensitivity analysis as they are outside the scope of IFRS 9. Our business units continue to hold

these types of contracts to satisfy their expected purchase, sale or usage requirements.

| Impact of climate change on our business - renewable power purchase agreements in Queensland, New Zealand and the USAAs part of the program to develop renewable energy solutions for our Queensland aluminium assets, in 2023 and 2024, we entered into long-termrenewable 2.2GW PPAs to buy renewable electricity and associated carbon credits to be generated in the future from the Upper Calliope solar farmand the Bungaban wind farm. In 2024, our New Zealand Aluminium Smelters signed long term PPAs with electricity generators for a total of 572MWof hydro electricity. We also signed a PPA with the Monte Cristo wind farm in the US. These contracts are recorded as derivatives, with netunrealised losses ofUS$111millionrecognised in the current year (2023: US$nil) and require complex derivative measurement over the contract’sterm categorised under level 3 with significant unobservable inputs related to future energy prices. A10%increase in forecast electricity prices overthe remaining term of the contracts would result in aUS$499millionincrease in fair value and a10%decrease in forecast electricity prices wouldresult in aUS$500milliondecrease in fair value. |

(v) Foreign exchange risk The broad geographic spread of our sales and operations means that our earnings, cash flows and shareholders’ equity are influenced by a wide variety of