Gold Fields

Fair Value Hierarchy

The Group has the following hierarchy for measuring the fair value of assets and liabilities at the reporting date:

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities;
Level 2: Inputs other than quoted prices in Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices); and
Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The Group recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred. There were no transfers during the periods ended 30 June 2021 and 31 December 2020.

The following table sets out the Group's financial assets and financial liabilities by level within the fair value hierarchy at the reporting date:

United States Dollars
30 June 2021
Figures in millions unless otherwise stated Total   Level 1   Level 2   Level 3  
Financial assets measured at fair value
Environmental trust funds 7.9     7.9    
Trade receivables from provisional copper sales 10.9     10.9    
Investments – listed 51.6   51.6      
Asanko redeemable preference shares 90.5       90.5  
Warrants 12.4     12.4    
Gold derivative contracts 6.5     6.5    
Foreign currency derivative contracts 45.3     45.3    
Oil derivative contracts 1.9     1.9    
Financial assets not measured at fair value
Environmental trust funds 77.3     77.3    
Loan advanced 68.4       68.4  
Financial liabilities measured at fair value
Copper derivative contracts 24.7     24.7    
Oil derivative contracts        
Financial liabilities not measured at fair value
Borrowings 1,509.0   1,136.4     372.6  
United States Dollars
31 December 2020
Figures in millions unless otherwise stated Total   Level 1   Level 2   Level 3  
Financial assets measured at fair value
Environmental trust funds 7.4     7.4    
Trade receivables from provisional copper sales 23.7     23.7    
Investments – listed 42.4   42.4      
Asanko redeemable preference shares 92.6       92.6  
Warrants 12.9     12.9    
Gold derivative contracts 27.3     27.3    
Foreign currency derivative contracts 86.0     86.0    
Oil derivative contracts        
Financial assets not measured at fair value
Environmental trust funds 71.9     71.9    
Loan advanced 68.4       68.4  
Financial liabilities measured at fair value
Copper derivative contracts 14.0     14.0    
Oil derivative contracts 15.1     15.1    
Financial liabilities not measured at fair value
Borrowings 1,689.8   1,156.3     533.5  

Environmental trust funds
The environmental trust funds are measured at fair value through profit or loss and amortised cost which approximates fair value based on the nature of the fund's underlying investments.

Trade receivables from provisional copper sales
Valued using quoted market prices based on the forward London Metal Exchange ("LME") and, as such, classified within Level 2 of the fair value hierarchy.

Listed investments
Comprise equity investments in listed entities and therefore valued using quoted market prices in active markets.

Asanko redeemable preference shares
The fair value is based on the expected cash flows of the Asanko Gold Mine based on the life-of-mine model. The key inputs used in the valuation of the fair value were the discount rate and the timing of the cash flows.

Warrants
Warrants are measured at fair value through profit or loss. The fair value is determined using a standard European call option format based on a standard option theory model.

Oil, gold, copper and foreign exchange derivative contracts
The fair values of these contracts are determined by using the applicable valuation models for each instrument type with the key inputs being forward prices, interest rates and volatility.

Borrowings
The 5-year notes and the 10-year notes are issued at a fixed interest rate. The fair values of these notes are based on listed market prices and are classified within Level 1 of the fair value hierarchy. The fair value of the remaining borrowings approximates their carrying amount, determined using the discounted cash flow method using market related interest rates and are classified within Level 3 of the fair value hierarchy. The carrying value of borrowings is US$1,366.6m (31 December 2020: US$1,526.9m).

Loan advanced – contractor
The fair value of the contractor loan approximates its carrying amount, determined using the discounted cash flow method and market related interest rates and is classified within Level 3 of the fair value hierarchy.