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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South African rand forward cover contracts were taken out to cover commitments of the South African operations in various currencies. Outstanding at the end of September 2012:
- AUD1.5 million with a mark to market value of USD0.01 million
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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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Australia - Diesel hedge* |
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St Ives Gold Mining Company (Pty) Ltd entered into a Gasoil 10PPM FOB Singapore contract for 10,000 barrels per month effective 1 August 2012 until
31 January 2013 at a fixed price of USD118.90 per barrel. Outstanding at the end of September 2012:
- 50,000 barrels with a mark to market value of USD0.6 million
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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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