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Financial instruments (Tables) | 6 Months Ended
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Jun. 30, 2025
Disclosure of detailed information about financial instruments [abstract] |
Summary of fair value of financial instruments | The table below shows the classifications of our financial instruments by valuation method in accordance with IFRS 13 “Fair Value Measurement” at 30 June 2025 and 31 December 2024. All instruments shown as being held at fair value have been classified as fair value through the profit and loss unless specifically footnoted.
|  | 30 June 2025 | 31 December 2024
|  | Held at fair value | Held at amortised cost US$m | Total US$m | Held at fair value | Held at amortised cost US$m | Total US$m
|  | Level 1(a) US$m | Level 2(b) US$m | Level 3(c) US$m | Level 1(a) US$m | Level 2(b) US$m | Level 3(c) US$m
Assets |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents(d) |  | 3,033 |  | — |  | — |  | 5,982 |  | 9,015 |  | 4,893 |  | — |  | — |  | 3,602 |  | 8,495 |
Investments in equity shares and funds(e) |  | 119 |  | — |  | 235 |  | — |  | 354 |  | 96 |  | — |  | 183 |  | — |  | 279 |
Other investments, including loans(f) |  | 115 |  | — |  | 290 |  | 135 |  | 540 |  | 230 |  | — |  | 275 |  | 104 |  | 609 |
Trade and other financial receivables(g) |  | 10 |  | 1,077 |  | — |  | 2,548 |  | 3,635 |  | 15 |  | 1,379 |  | — |  | 1,948 |  | 3,342 |
Loans to equity accounted units |  | — |  | — |  | — |  | 682 |  | 682 |  | — |  | — |  | — |  | 509 |  | 509 |
Forward contracts and option contracts: designated as hedges(h) |  | — |  | — |  | 11 |  | — |  | 11 |  | — |  | — |  | 27 |  | — |  | 27 |
Forward, option and embedded derivatives contracts, not designated as hedges(h) |  | — |  | 17 |  | 170 |  | — |  | 187 |  | — |  | 42 |  | 19 |  | — |  | 61 |
Derivatives related to net debt(i) |  | — |  | 169 |  | — |  | — |  | 169 |  | — |  | 24 |  | — |  | — |  | 24 |
Liabilities |  |  |  |  |  |  |  |  |  |  |
Trade and other financial payables(j) |  | — |  | (45) |  | — |  | (7,627) |  | (7,672) |  | — |  | (144) |  | — |  | (6,392) |  | (6,536) |
Forward, option and embedded derivatives contracts, designated as hedges(h) |  | — |  | — |  | (222) |  | — |  | (222) |  | — |  | — |  | (180) |  | — |  | (180) |
Forward, option and embedded derivatives contracts, not designated as hedges(h) |  | — |  | (47) |  | (116) |  | — |  | (163) |  | — |  | (48) |  | (108) |  | — |  | (156) |
Derivatives related to net debt(i) |  | — |  | (238) |  | — |  | — |  | (238) |  | — |  | (367) |  | — |  | — |  | (367) |
(a)Valuation is based on unadjusted quoted prices in active markets for identical financial instruments. (b)Valuation is based on inputs that are observable for the financial instruments, which include quoted prices for similar instruments or identical instruments in markets which are not considered to be active, or inputs, either directly or indirectly based on observable market data. (c)Valuation is based on inputs that cannot be observed using market data (unobservable inputs). The change in valuation of our level 3 instruments for the period to 30 June 2025 and 31 December 2024 is as follows.
| 30 June 2025 | 31 December 2024
Level 3 financial assets and liabilities | US$m | US$m
Opening balance | 216 |  | 147 |
Currency translation adjustments | 5 |  | (12) |
Total realised gains/(losses) included in: |  |
– net operating costs | 19 |  | (32) |
Total unrealised gains included in: |  |
– net operating costs | 172 |  | 22 |
Total unrealised gains transferred into other comprehensive income through cash flow hedges | 9 |  | 34 |
Additions to financial assets | 47 |  | 88 |
Disposals/maturity of financial instruments | (100) |  | (31) |
Closing balance | 368 |  | 216 |
Net gains included in the income statement for assets and liabilities held at year end | 158 |  | 3 |
(d)Our Cash and cash equivalents of US$9,015 million (31 December 2024: US$8,495 million) includes US$3,033 million (31 December 2024: US$4,893 million)relating to money market funds which are treated as FVTPL under IFRS 9 with the fair value movements reported as finance income. (e)Investments in equity shares and funds include US$279 million (31 December 2024: US$221 million) of equity shares, not held for trading, where we have irrevocably elected to present fair value gains and losses on revaluation in other comprehensive income. The election is made at an individual investment level. (f)Other investments, including loans, covers cash deposits in rehabilitation funds, government bonds, managed investment funds and royalty receivables. (g)Trade receivables include provisionally priced invoices. The related revenue is initially based on forward market selling prices for the quotation periods stipulated in the contracts with changes between the provisional price and the final price recorded separately within “Other revenue”. The selling price can be measured reliably for the Group's products, as it operates in active and freely traded commodity markets. At 30 June 2025, US$1,058 million (31 December 2024: US$1,374 million) of provisionally priced receivables were recognised. (h)Level 3 derivatives mainly consist of derivatives embedded in electricity purchase contracts linked to the LME, midwest premium and billet premium with terms expiring between 2025 and 2036 (31 December 2024: 2025 and 2036). Derivatives related to renewable power purchase agreements are linked to forward electricity prices with terms expiring between 2026 and 2054 (31 December 2024: 2026 and 2054). (i)Net debt derivatives include interest rate swaps and cross-currency swaps. (j)Trade and other financial payables comprise trade payables, other financial payables, accruals and amounts due to equity accounted units. The techniques used to value our more significant fair value assets/(liabilities) categorised under level 2 and level 3 are summarised below:
| 30 June 2025 | 31 December 2024 |  |
Description | Fair value US$m | Fair value US$m | Valuation technique | Significant inputs
Level 2
Interest rate swaps | 68 |  | (156) |  | Discounted cash flows | •Applicable market quoted swap yield curves •Credit default spread
Cross-currency interest rate swaps | (137) |  | (187) |  | Discounted cash flows | •Applicable market quoted swap yield curves •Credit default spread •Market quoted FX rate
Provisionally priced receivables | 1,058 |  | 1,374 |  | Closely related listed product | •Applicable forward quoted metal price
Level 3
Renewable power purchase agreements | (4) |  | (111) |  | Discounted cash flows | •Forward electricity price •Energy volume
Derivatives embedded in electricity contracts | (152) |  | (132) |  | Option pricing model | •LME forward aluminium price •Midwest premium and billet premium
Royalty receivables | 265 |  | 252 |  | Discounted cash flows | •Forward commodity price •Mine production
The following table shows the carrying value and fair value of our borrowings including those which are not carried at an amount which approximates their fair value 30 June 2025 and 31 December 2024. The fair values of some of our financial instruments approximate their carrying values because of their short maturity, or because they carry floating rates of interest.
|  | 30 June 2025 | 31 December 2024
|  | Carrying value US$m | Fair value US$m | Carrying value US$m | Fair value US$m
Listed bonds(a) |  | 17,355 |  | 16,944 |  | 8,137 |  | 7,702 |
Oyu Tolgoi project finance |  | 3,854 |  | 4,109 |  | 3,852 |  | 4,103 |
Other |  | 822 |  | 781 |  | 453 |  | 416 |
Total borrowings (including overdrafts) |  | 22,031 |  | 21,834 |  | 12,442 |  | 12,221 |
a.On 12 March 2025, we issued US$9 billion of fixed and floating rate SEC-registered debt securities. The bonds consist of eight tranches of varying principal amount, tenor and coupon. One tranche consisting of US$500 million three-year notes is priced at a floating rate coupon of Compounded SOFR plus 0.84% maturing in 2028, with the remaining seven tranches priced at fixed coupons ranging between 4.375% and 5.875% and maturity dates ranging between 2027 and 2065.
Summary of changes in the fair value of Level 3 financial assets and financial liabilities | The change in valuation of our level 3 instruments for the period to 30 June 2025 and 31 December 2024 is as follows.
| 30 June 2025 | 31 December 2024
Level 3 financial assets and liabilities | US$m | US$m
Opening balance | 216 |  | 147 |
Currency translation adjustments | 5 |  | (12) |
Total realised gains/(losses) included in: |  |
– net operating costs | 19 |  | (32) |
Total unrealised gains included in: |  |
– net operating costs | 172 |  | 22 |
Total unrealised gains transferred into other comprehensive income through cash flow hedges | 9 |  | 34 |
Additions to financial assets | 47 |  | 88 |
Disposals/maturity of financial instruments | (100) |  | (31) |
Closing balance | 368 |  | 216 |
Net gains included in the income statement for assets and liabilities held at year end | 158 |  | 3 |

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