2 million loss iii gold and silver forward contracts

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: sed to changes in energy prices through its consumption of diesel and other fuels, and the price of electricity in some electricity supply contracts. The Company entered into energy forward contracts that protect against the risk of fuel price increases. Fuel is consumed in the operation of mobile equipment and electricity generation. The following table provides a summary of energy forward contracts outstanding at December 31, 2012, maturing in: Energy Oil forward buy contracts (barrels) Average price Diesel forward buy contracts (gallons) Average price Gasoil forward buy contracts (tonnes) Average price 2013 290,000 92.52 4,830,000 2.96 40,260 906.30 2014 2015 175,000 88.78 2,520,000 2.83 16,104 864.00 100,000 86.64 - Total 565,000 90.32 7,350,000 2.92 56,364 894.21 During 2012, the following new forward buy derivative contracts were engaged: 498,000 barrels of Nymex Crude WTI oil at an average rate of $92.66 per barrel, with maturities in 2012, 2013, 2014 and 2015; 5.25 million gallons of diesel at an average rate of $2.92 per gallon, with maturities in 2012, 2013 and 2014; and 56,364 tonnes of gasoil at an average rate of $894.21 per tonne, with maturities in 2013 and 2014. At December 31, 2012, the unrealized gain or loss on these derivative contracts recorded in AOCI is as follows: Oil forward buy contracts – unrealized gain of $0.9 million (December 31, 2011 – $1.8 million gain); Diesel forward buy contracts - unrealized loss of $0.2 million (December 31, 2011 – $0.3 million loss); and Gasoil forward buy contracts – unrealized gain of $1.3 million (December 31, 2011 – $0.2 million loss). (v) Total return swap A total return swap (“TRS”) was engaged during the fourth quarter of 2008 as an economic hedge of the Company’s DSUs. Under the terms of the TRS, a bank has the right to purchase Kinross shares in the marketplace as a hedge against the returns in the TRS. At December 31, 2012, 91% of the DSUs were economically hedged, although hedge accounting wa...
View Full Document

This document was uploaded on 03/30/2014.

Ask a homework question - tutors are online