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Whitehaven Coal Limited : Annual Report 2011
WhitehavenCoalLimited–AnnualReport2011 89 noteS to the Financial StatementS 30 june 2011 1 7. dERivATivE fiNANCiAL iNsTRumENTs (CONTiNuEd) instruments used by the consolidated entity Derivative financial instruments are used by the consolidated entity in the normal course of business in order to hedge exposure to fluctuations in foreign exchange rates Forward currency contracts – cash flow hedges The consolidated entity undertakes sales in US dollars In order to protect against exchange rate movements and reduce the foreign exchange rate related volatility of the consolidated entity’s revenue stream, the consolidated entity enters into forward exchange contracts to sell US dollars in the future at stipulated exchange rates Forward exchange contracts are entered for future sales undertaken in US dollars The contracts are timed to mature when funds for coal sales are forecast to be received At 30 June 2011, the forward exchange contracts are designated as cash flow hedges and are expected to impact profit and loss in the periods specified below forward exchange contracts In thousands of AUD (except exchange rates) Fair value 2011 Average exchange rates 2011 Fair value 2010 Average exchange rates 2010 Sell US dollars Less than 6 months 39,572 0 8614 10,458 0 8145 6 months to 1 year 16,426 0 9349 5,319 0 8108 1 year to less than 2 years – – (5,142) 0 8246 55,998 0.8945 10,635 0.8160 Buy Euros Less than 6 months (7,208) 0 5707 (6,251) 0 5882 6 months to 1 year – – (679) 0 5902 (7,208) 0.5707 (6,930) 0.5885 18. iNvEsTmENTs Consolidated In thousands of AUD 2011 2010 Current investments Investment in unlisted preference shares 14,866 – Non-current investments Investment in unlisted preference shares 1,210 1,210 During the year the Group acquired a total of $373m in preference shares ($14 8m) and shareholder loan notes ($22 5m) as part of the funding requirement of the NCIG Stage 2AA expansion The shareholder loan notes were all disposed of during the year as NCIG secured funding from other investors As part of one of these disposals the Company issued a put option giving the acquirer the right, subject to certain criteria being met, to sell back the shareholder loan notes The likelihood of the put option being exercised is considered remote
Annual Report 2010
Annual Report 2012