Annual Report 2000 in PDF - Antofagasta plc

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Notes to the Financial Statements19 Financial Instruments and Risk Management (continued)a) Financial assetsUS DollarsSterling2000 1999 2000 1999US$m US$m £m £mUS Dollar 457.9 503.4 290.7 305.7Chilean Peso 33.8 15.9 22.6 9.8Sterling 0.4 0.4 0.2 0.2492.1 519.7 313.5 315.7The financial assets of the Group comprise:US DollarsSterling2000 1999 2000 1999US$m US$m £m £mOther investments 185.5 185.8 108.2 108.3Current asset investments 297.1 328.4 198.9 204.0Cash at bank and in hand 3.0 3.2 2.0 2.0Debtors due after one year 6.5 2.3 4.4 1.4492.1 519.7 313.5 315.7Current asset investments are typically fixed interest deposits at commercial rates, with maturities of one month or less.The weighted average fixed interest rate for current asset investments is 6.55% with a weighted average period of lessthan one month. Other categories of financial assets do not usually earn interest income and do not have specificmaturity dates.b) Financial liabilitiesFinancial liabilities at 31 December 2000 relate to the Group’s other creditors due after more than one year (Note 17),borrowings (Note 18), severance indemnities (Note 20) and preference shares (Note 21).The weighted average interest rate of financial liabilities and the weighted average maturity period of the fixed rate andANTOFAGASTA PLC Annual Report 2000interest-free liabilities respectively, after taking account of interest rate swaps are as follows:WeightedaverageWeighted periodWeighted average to maturityaverage period for of thefixed which rate interest-freeinterest rate is fixed liabilities% Years Years64US Dollar 7.27 8 8
19 Financial Instruments and Risk Management (continued)c) Commodity price hedgingTurnover for the mining division includes a net realised loss of US$2.3 million (£1.5 million) arising from commodity pricehedging activities (1999 – loss of US$2.7 million; £1.7 million) in respect of copper cathode production at Michilla in orderto secure minimum cashflow from operations during 2000. At 31 December 2000 there were no outstanding commodityprice hedging contracts.d) Interest rate swap and zero cost collar agreementsThe majority of the Group’s borrowings have been, and are, subject to variable interest rates as explained in Note 18.The Group had no outstanding interest rate swap or zero cost collar agreements at 31 December 2000.e) Forward exchange contractsThe Group periodically enters into forward foreign exchange contracts to reduce the foreign currency exposure of theGroup’s operations. The terms of currency forward exchange contracts are typically less than one year. The purposeof the foreign exchange hedging activities is to protect the Group from the risk that the eventual net inflows and netoutflows will be adversely affected by changes in exchange rates.At 31 December 2000 the Group had no outstanding forward exchange contracts (1999 – contracts to purchaseUS dollars had a notional principal amount of US$29.5 million; £18.2 million).f) Currency exposuresThe table below shows the Group’s currency exposures at 31 December 2000; being exposures on currency transactionsthat give rise to the net currency gains and losses recognised in the profit and loss account. Such exposures comprisethe monetary assets and liabilities of the Group that are not denominated in the functional currency of the operatingcompany involved.Net foreign currency monetary assets/(liabilities)US Dollars2000 1999ChileanChileanFunctional currency of Sterling US Dollar Peso Total Sterling US Dollar Peso TotalGroup Operation: US$m US$m US$m US$m US$m US$m US$m US$mUS Dollar 0.6 – 37.9 38.5 (2.8) – (0.7) (3.5)Chilean Peso (0.1) 245.8 – 245.7 – 43.0 – 43.0Sterling2000 1999ChileanChileanFunctional currency of Sterling US Dollar Peso Total Sterling US Dollar Peso TotalGroup Operation: £m £m £m £m £m £m £m £mANTOFAGASTA PLC Annual Report 2000US Dollar 0.4 – 25.4 25.8 (1.7) – (0.4) (2.1)Chilean Peso (0.1) 164.5 – 164.4 – 26.5 – 26.565
Page 1 and 2:
ANNUAL REPORT 2000
Page 3:
Directors and AdvisorsDirectorsA A
Page 8:
Chairman’s ReviewMININGMinera Los
Page 11 and 12:
View of crushing facilitiesDome ove
Page 13:
Harvesting cathodes from electrowin
Page 16 and 17: Chairman’s ReviewTRANSPORT ANDREA
Page 18 and 19: Chairman’s ReviewANTOFAGASTA PLC
Page 20 and 21: Financial ReviewBasis of Financial
Page 22 and 23: Financial ReviewIncome from Other F
Page 24 and 25: Financial ReviewCash Flows and Fina
Page 26 and 27: Production StatisticsFor the year e
Page 28 and 29: Report of the DirectorsThe Director
Page 30 and 31: Report of the DirectorsSpecial Busi
Page 32 and 33: Corporate GovernanceGiven its small
Page 34 and 35: Report on Remuneration and Related
Page 36 and 37: Auditors’ Report to the Members o
Page 38 and 39: Consolidated Profit and Loss Accoun
Page 40 and 41: Consolidated Statement of Total Rec
Page 42 and 43: Parent Company Balance SheetAt 31 D
Page 44 and 45: Notes to the Financial Statements1
Page 78 and 79: Five Year Summary - US DollarsConso
Page 80 and 81: Notice of MeetingAntofagasta plcNot
Page 82: Designed by RDA. Printed by Royle F
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