XML 51 R34.htm IDEA: XBRL DOCUMENT
v3.19.1

Fair value measurement | 12 Months Ended
--- | ---
Dec. 31, 2018
Disclosure of financial liabilities [abstract] |
Fair value measurement | 28. Fair value measurement Fair value of assets and liabilities that are measured at fair value on a recurring basis The following table provides the fair value measurement hierarchy of the Company’s assets and liabilities that are carried at fair value in the statement of financial position:
|  | December 31, 2018
|  |  |  | Quoted prices in active markets |  | Significant observable inputs |  | Significant unobservable inputs
|  | Total |  | (Level 1) |  | (Level 2) |  | (Level 3)
|  | US$'000 |  | US$'000 |  | US$'000 |  | US$'000
Other assets (Note 12): |  |  |  |  |  |  |  |
Biological assets |  | 7,790 |  | — |  | — |  | 7,790
Other financial assets (Note 10): |  |  |  |  |  |  |  |
Debt investments |  | 67,079 |  | — |  | — |  | 67,079
Listed equity securities |  | 2,523 |  | 2,523 |  | — |  | —
Other financial liabilities (Note 19): |  |  |  |  |  |  |  |
Derivative financial instruments - cross currency swap |  | (20,384) |  | — |  | (20,384) |  | —
Derivative financial instruments - interest rate swaps |  | (3,079) |  | — |  | (3,079) |  | —
Other liabilities (Note 21) |  |  |  |  |  |  |  |
Contingent consideration in a business combinations |  | (26,222) |  | — |  | — |  | (26,222)
|  | December 31, 2017
|  |  |  | Quoted prices in active markets |  | Significant observable inputs |  | Significant unobservable inputs
|  | Total |  | (Level 1) |  | (Level 2) |  | (Level 3)
|  | US$'000 |  | US$'000 |  | US$'000 |  | US$'000
Other assets (Note 12): |  |  |  |  |  |  |  |
Biological assets |  | 27,279 |  | — |  | — |  | 27,279
Other financial assets (Note 10): |  |  |  |  |  |  |  |
Other |  | 82,638 |  | — |  | — |  | 82,638
Other financial liabilities (Note 19): |  |  |  |  |  |  |  |
Derivative financial instruments - cross currency swap |  | (33,648) |  | — |  | (33,648) |  | —
Derivative financial instruments - interest rate swaps |  | (4,392) |  | — |  | (4,392) |  | —
Cross currency swap The cross currency swap is valued using a discounted cash flow technique. The valuation model incorporates foreign exchange spot and forward rates, yield curves of the respective currencies, currency basis spreads between the respective currencies and forward interest rates. The valuation also incorporates a credit risk adjustment, calculated based on credit spreads derived from current credit default swap prices (see Note 19). The fair value of the swap at December 31, 2018 was a liability of $20,384 thousand, which is categorized as a level 2 measurement in the fair value hierarchy as it is based on valuation techniques for which the inputs are directly or indirectly observable. The fair value is calculated as the present value of the estimated future cash flows and is subject to a credit risk adjustment that reflect the credit risk of the Company; this is calculated based on credit spreads derived from current credit default swap prices. Interest rate swaps Interest rate swaps are valued using a discounted cash flow technique. Future cash flows are estimated based on forward interest rates (from observable yield curves at the end of the reporting period) and contract interest rates, discounted at a rate that reflects the credit risk of various counterparties. Biological assets Biological assets comprise timber farms in South Africa, which are a source of raw materials used for the production of silicon metal. The timber farms plantations are measured at fair value less the incremental costs to be incurred until the related products are at the point of sale. The changes in the fair value of this asset are recognized in the income statement in the line “net gain (loss) due to changes in the value of assets” (see Note 25.5). During the year ended December 31, 2018, the Company divested of certain timber farm plantations and associated property, plant and equipment, which resulted in proceeds of $12,734 thousand. The fair value of the remaining timber farm plantations at December 31, 2018 is based on indicative offers received. In the prior year, the fair value of the biological assets was based on a valuation model for which the key assumptions were as follows:
| · |  | the arm’s length price (market price) used by the market for wood of varying ages;
| · |  | the wood pulp industry Mean Annual Increment (MAI) index of 15 for gum and 10.5 for pine is used to determine the annual growth rate of the plantations; and
| · |  | the density index used to convert cubic meters of wood to metric tons is 0.94 for pine and 1 for wood pulp.
The changes in fair value of biological assets classified at level 3 in the hierarchy were as follows:
|  | Level 3
|  | US$'000
January 1, 2017 |  | 17,365
Gain recognised in profit or loss (Note 25.5) |  | 7,504
Translation differences |  | 2,410
December 31, 2017 |  | 27,279
Loss recognised in profit or loss (Note 25.5) |  | (7,615)
Disposal of biological assets |  | (12,168)
Translation differences |  | 294
December 31, 2018 |  | 7,790

X
- Definition The entire disclosure for fair value measurement. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 13 -IssueDate 2018-01-01 -Section Disclosure -URI http://eifrs.ifrs.org/eifrs/XBRL?type=IFRS&num=13&date=2018-03-01&anchor=sect_Disclosure&doctype=Standard -URIDate 2018-03-16 + Details
Name: | ifrs-full_DisclosureOfFairValueMeasurementExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | ifrs-full_DisclosureOfFinancialLiabilitiesAbstract
Namespace Prefix: | ifrs-full_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration