Financial instruments

6 Months Ended

Jun. 30, 2026

Disclosure of detailed information about financial instruments [abstract]

10. Financial instruments

Valuation hierarchy of financial instruments carried at fair value on a recurring basis

The table below shows the classifications of our financial instruments by valuation method in accordance with IFRS 13 “Fair Value Measurement” at

30 June 2026 and 31 December 2025.

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 2026					31 December 2025
	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$m	Held at amortised cost US$m	Total US$m	Level 1(a) US$m	Level 2(b) US$m	Level 3(c) US$m	Held at amortised cost US$m	Total US$m
Assets
Cash and cash equivalents(d)	2,788	—	—	6,125	8,913	3,725	—	—	5,147	8,872
Investments in equity shares and funds(e)	120	—	137	—	257	179	—	139	—	318
Other investments, including loans(f)	23	4	307	389	723	25	3	324	481	833
Trade and other financial receivables(g)	3	962	—	2,712	3,677	4	1,440	—	2,469	3,913
Loans to equity accounted units	—	—	—	799	799	—	—	—	800	800
Forward, option and embedded derivative contracts: designated as hedges(h)	—	—	267	—	267	—	—	59	—	59
Forward, option and embedded derivative contracts, not designated as hedges(h)	—	131	89	—	220	—	23	89	—	112
Derivatives related to net debt(i)	—	42	—	—	42	—	151	—	—	151

Liabilities
Trade and other financial payables(j)	—	(128)	—	(7,800)	(7,928)	—	(190)	—	(7,923)	(8,113)
Forward, option and embedded derivatives contracts, designated as hedges(h)	—	—	(244)	—	(244)	—	—	(277)	—	(277)
Forward, option and embedded derivatives contracts, not designated as hedges(h)	—	(102)	(166)	—	(268)	—	(68)	(162)	—	(230)
Derivatives related to net debt(i)	—	(304)	—	—	(304)	—	(231)	—	—	(231)
Other financial liabilities	—	—	—	(136)	(136)	—	—	—	(66)	(66)

(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 market quoted FX rates, credit default spread, 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. Valuation techniques include

discounted cash flows or closely related listed product, as appropriate.

10. Financial instruments (continued)

(c)Valuation is based on inputs that cannot be observed using market data (unobservable inputs), including forward

electricity or commodity prices, energy volume or mine production, using valuation techniques such as discounted

cash flows or option pricing models, as appropriate. The change in valuation of our level 3 instruments for the period

to 30 June 2026 and 31 December 2025 is as follows:


	30 June 2026	31 December 2025
Level 3 financial assets and liabilities	US$m	US$m
Opening balance	172	216
Currency translation adjustments	7	16
Total realised (losses)/gains included in net operating costs	(24)	31
Total unrealised gains included in net operating costs	61	136
Total unrealised gains/(losses) transferred into other comprehensive income through cash flow hedges	154	(105)
Additions/acquisitions of financial assets and liabilities	2	85
Disposals/maturity of financial assets and liabilities	18	(207)
Closing balance	390	172
Net gains included in the income statement for assets and liabilities held at period end	34	113

(d)Our Cash and cash equivalents of US$8,913 million (31 December 2025: US$8,872 million) includes US$2,788

million (31 December 2025: US$3,725 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$186 million (31 December 2025: US$240 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. Royalty receivables include amounts arising from our previously divested

coal businesses with a fair value of US$266 million (31 December 2025: US$275 million).

(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 2026, US$938 million

(31 December 2025: US$1,431 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 2029 and 2036 (31 December 2025: 2026 and

2036), as well as renewable power purchase agreements which are linked to forward electricity prices with terms

expiring between 2026 and 2054 (31 December 2025: 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.

There were no material transfers between level 1 and level 2, or between level 2 and level 3 in the

current or prior period.

Fair values disclosure of financial instruments

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 as at 30 June 2026 and

31 December 2025. 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 2026		31 December 2025
	Carrying value US$m	Fair value US$m	Carrying value US$m	Fair value US$m
Listed bonds(a)	17,141	16,851	17,336	17,148
Oyu Tolgoi project finance	3,277	3,439	3,755	3,990
Rincon funding facility(b)	158	158	–	–
Other	838	797	840	795
Total borrowings (including overdrafts)	21,414	21,245	21,931	21,933

(a)In 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.

(b)On 11 March 2026, we secured a US$1,175 million funding facility (the 'facility') from four international lenders, comprising the

International Finance Corporation, Inter-American Development Bank Invest, Export Finance Australia and the Japan Bank for

International Cooperation, to support the development of the Rincon lithium project in Argentina's Salta Province. The facility has a

ten-year term and matures in 2036. During the six months ended 30 June 2026, the amount drawn under the facility, net of

transaction costs was US$158 million.

Borrowings relating to listed bonds are categorised as level 1 in the fair value hierarchy while

those relating to project finance drawn down by Oyu Tolgoi (OT) use a number of level 3 valuation

inputs. Our remaining borrowings have a fair value measured by discounting estimated cash flows

with an applicable market quoted yield, and are categorised as level 2 in the fair value hierarchy.

The Group’s borrowings of US$21,414 million (31 December 2025: US$21,931 million) include

US$3,451 million (31 December 2025: US$3,795 million) of subsidiary entity borrowings that are

subject to various financial and general covenants, including, in some cases, environmental and

social covenants; the non-compliance with these covenants, if not remediated, would permit the

lender to immediately call the loan and borrowings. This includes our project finance borrowings in

OT and Rincon funding facility which require the maintenance of certain debt-to-equity ratios and

OT also requires maintenance of a debt service coverage ratio. Based on our forecasting, we

consider this risk of non-compliance with these covenants to be remote. The covenants with all

respective borrowers were in compliance as at 30 June 2026 and are expected to be in

compliance within 12 months after the reporting date.