Gold Fields

FAIR VALUE HIERARCHY (REVIEWED)

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 year ended 31 December 2019 and 2018.

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
Figures in millions unless otherwise stated
 
  2019         2018      
Total Level 1 Level 2 Level 3   Total Level 1 Level 2 Level 3  
Financial assets measured at fair value                    
Environmental trust funds 7.2 7.2   6.5 6.5  
Trade receivables from provisional copper sales 22.8 22.8   15.3 15.3  
Investments – listed 47.9 47.9   93.0 93.0  
Investments – unlisted   0.1 0.1  
Asanko redeemable preference shares 95.5 95.5   132.9 132.9  
Warrants 11.7 11.7   9.3 9.3  
Oil derivative contracts 1.1 1.1   4.7 4.7  
Copper derivative contracts   1.2 1.2  
Gold derivative contracts   2.4 2.4  
Financial assets not measured at fair value                
Environmental trust funds 62.3 62.3   54.3 54.3    
Financial liabilities measured at fair value                    
Foreign exchange derivative contracts 0.3 0.3   8.7 8.7  
Gold derivative contracts 127.3 127.3   13.9 13.9  
Financial liabilities not measured at fair value                    
Borrowings 1,952.4 1,700.4 252.0   1,897 839.6 1,057.4  

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.

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 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 2020 notes, 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.