14.9 |
Valuation Adjustments Kumba
The valuation adjustments include the following:
- The value of unallocated corporate expenses. This is based on an assumption of unallocated corporate overheads being ZAR2,682m (in 1 January 2006 money terms). All costs are discounted at the WACC derived for the Material Properties;
- The Net debt position as at 31 December 2005 which is stated as ZAR1,391m; and
- Derivative Instruments totalling some ZAR5m negative which comprise:
- The mark to market value of commodity contracts as at 31 December 2005 and valued by independent risk and treasury management experts is ZAR6m negative. This value was based on exchange rates of 1:6.3250 (USD:ZAR) and 1877 (USD/t) zinc price, and the prevailing market rates at the time;
- The mark to market value of interest rate swaps as at 31 December 2005 and valued by independent risk and treasury management experts is ZAR0.5m negative; and
- The mark to market value of currency contracts as at 31 December 2005 and valued by independent risk and treasury management experts is ZAR2m positive.
Table 14.185 Summary of Valuation Adjustments – Kumba
|
| |
|
|
|
| Valuation Adjustments |
Units |
Sub-total |
Total |
| Unallocated Corporate Expenses |
(ZARm) |
|
(2,682) |
| Net debt at 31 December 2005 |
(ZARm) |
|
(1,391) |
| Derivative instruments |
(ZARm) |
|
(5) |
| Mark-to-market of Commodity Hedge Book at 31 December 2005 |
(ZARm) |
(6.0) |
|
| Mark-to-market of Interest Rate Swaps at 31 December 2005 |
(ZARm) |
(0.5) |
|
| Mark-to-market of Currency Contracts at 31 December 2005 |
(ZARm) |
2.0 |
|
| Total |
(ZARm) |
|
(4,078) |
|
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