Annual Report 2007 - Antofagasta plc

Notes to the Financial Statements continued21 Cash and Cash EquivalentsCash and cash equivalents comprise cash in hand, deposits held on call with banks and highly liquid investmentsthat are readily convertible into known amounts of cash and which are subject to an insignificant risk of changesin value.Cash and cash equivalents had a maturity period of three months or less from the date of acquisition at both31 December 2007 and 31 December 2006, and carried floating rates of interest. The fair value of cash andcash equivalents is not materially different from the carrying values presented. The credit risk on cash and cashequivalents is limited because the counterparties are banks with high credit ratings assigned by internationalcredit-rating agencies.The currency exposure of cash and cash equivalents was as follows:2007 2006US$m US$mUS dollars 2,148.0 1,683.3Chilean pesos 40.2 99.8Australian dollars 23.5 19.4Euros 0.3 0.1Sterling – 0.6Other 0.5 2.322 Borrowingsa) Analysis by type of borrowingBorrowings may be analysed by business segment and type as follows:2,212.5 1,805.52007 2006Notes US$m US$mLos PelambresCorporate loans (i) (229.0) (305.3)Other loans (ii) (4.7) (9.5)El TesoroCorporate loans (iii) (14.0) (27.9)Finance leases (iv) (0.1) (0.2)MichillaFinance leases (iv) (0.1) (0.9)Railway and other transport servicesLoans (v) (14.1) (10.8)FINANCIAL STATEMENTSOtherPreference shares (vi) (4.0) (4.1)(266.0) (358.7)(i) Corporate loans at Los Pelambres are unsecured and US dollar denominated. The balance of US$229.0 millionrepresents syndicated loans of US$230.0 million less deferred financing costs of US$1.0 million. Theseloans are repayable in semi-annual instalments with 3 years remaining and carry interest at approximatelyLIBOR six-month rate plus 0.24%.110Antofagasta plc Annual Report and Financial Statements 2007