Hedging / Derivatives
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The Group’s policy is to remain unhedged to the gold price. However, hedges are sometimes undertaken on a project specific basis as follows:
- to protect cash flows at times of significant expenditure;
- for specific debt servicing requirements; and
- to safeguard the viability of higher cost operations.
Gold Fields may from time to time establish currency financial instruments to protect underlying cash flows. |
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South Africa forward cover contracts* |
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Outstanding at the end of September 2011 was the following contract:
- CAD/ZAR – CAD0.4 million in total, with a zero marked to market value.
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* Do not qualify for hedge accounting and will be accounted for as derivative financial instruments in the income statement. |
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