RIO TINTO LTD
For the period ended Dec 31, 2024. Filed Feb 20, 2025.
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The yearly report of a company based outside the US. It covers much of what a 10-K does, and may follow accounting rules other than US ones.
FY2024 · Filed Feb 20, 2025
Contents
Analysis of changes in net debt
| 2024 | ||||||
|---|---|---|---|---|---|---|
| Financial liabilities | ||||||
| Borrowings excluding overdrafts (note 20)(a)US$m | Lease liabilities (note 21)(b)US$m | Derivatives related to net debt(note 23)(c)US$m | Cash and cash equivalents including overdrafts (note 22)(a)US$m | Other investments(note 23)(d)US$m | Net debtUS$m | |
| At 1 January | (13,000) | (1,351) | (429) | 9,672 | 877 | (4,231) |
| Foreign exchange adjustment | 57 | 69 | (30) | (99) | (1) | (4) |
| Cash movements excluding exchange movements | 494 | 455 | 104 | (1,089) | (675) | (711) |
| Other non-cash movements | 18 | (586) | 12 | – | 11 | (545) |
| At 31 December | (12,431) | (1,413) | (343) | 8,484 | 212 | (5,491) |
| 2023 | ||||||
|---|---|---|---|---|---|---|
| Financial liabilities · Other assets | ||||||
| Borrowingsexcluding overdrafts (note 20)(a)US$m · Lease liabilities (note 21)(b)US$m · Derivatives related to net debt(note 23)(c)US$m · Cash and cash equivalents including overdrafts (note 22)(a)US$m · Other investments(note 23)(d)US$m · Net debtUS$m | ||||||
| At 1 January | (11,070) | (1,200) | (690) | 6,774 | 1,998 | (4,188) |
| Foreign exchange adjustment | (87) | (21) | 62 | (23) | – | (69) |
| Cash movements excluding exchange movements | (1,523) | 426 | (4) | 2,921 | (1,157) | 663 |
| Other non-cash movements | (320) | (556) | 203 | – | 36 | (637) |
| At 31 December | (13,000) | (1,351) | (429) | 9,672 | 877 | (4,231) |
(a)Borrowings excluding overdrafts of US$12,431 million (2023: US$13,000 million) differs from Borrowings on the balance sheet as it excludes bank overdrafts of US$11 million
(2023: US$1 million)which has been included in cash and cash equivalents for the net debt reconciliation.
(b)Other non-cash movements in lease liabilities include the net impact of additions, modifications and terminations during the period.
(c)Included within “Derivatives related to net debt” are interest rate and cross-currency interest rate swaps that are in hedge relationships with the Group's debt.
(d)Other investments includes US$212 million (2023: US$877 million) of highly liquid financial assets held in a separately managed portfolio of fixed income instruments classified as held for
trading.
The table below summarises, by currency, our net debt, after taking into account relevant cross-currency interest rate swaps and foreign
exchange contracts:
| 2024 · 2023 | |||||||
|---|---|---|---|---|---|---|---|
| Net debt by currency | BorrowingsexcludingoverdraftsUS$m | Lease liabilitiesUS$m | Derivativesrelated to netdebtUS$m | Cash andcashequivalentsUS$m | OtherinvestmentsUS$m | Net debtUS$m | Net debtUS$m |
| US dollar | (12,181) | (539) | (343) | 7,108 | 212 | (5,743) | (4,033) |
| Australian dollar | (92) | (501) | – | 721 | – | 128 | (186) |
| Canadian dollar | (158) | (158) | – | 81 | – | (235) | (247) |
| South African rand | – | (2) | – | 167 | – | 165 | 130 |
| Other | – | (213) | – | 407 | – | 194 | 105 |
| Total | (12,431) | (1,413) | (343) | 8,484 | 212 | (5,491) | (4,231) |
20 Borrowings
Borrowings are recognised initially at fair value, net of transaction costs incurred, and are subsequently measured at amortised cost. Our policy
is to predominantly borrow in US dollars (USD) at floating interest rates, either directly or through the use of derivatives, as:
–the majority of our sales are in USD
–historically a lower cost of borrowing has been observed from maintaining a floating rate exposure
–historically there has been a correlation between interest rates and commodity prices.
For bonds with fixed interest rates, we generally enter into interest rate swaps to convert them to floating rates. The tenor of the interest rate
swaps is sometimes shorter than the tenor of the bond which means we remain exposed to long-term fixed-rate funding. As interest rate swaps
mature, new medium dated swaps are generally transacted to maintain this floating rate exposure; 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.
We have designated the swaps to be in fair value hedge relationships with the corresponding period of future interest payments of the
respective debt.
Where we borrow non-US denominated debt, we generally enter into cross-currency interest rate swaps to convert the principal and fixed
interest coupon to a USD nominal with a USD interest coupon.
20 Borrowings continued
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