Business Context and Reporting Period
Company: CEMENTOS PACASMAYO S.A.A. (Pacasmayo Cement Corporation)
Jurisdiction: Republic of Peru
Filing Type: Form 6-K (Report of Foreign Issuer)
Reporting Period: Month of June 2019 (Data as of May 31, 2019)
Subject: Monthly Position of Financial Derivatives
Key Financial Metrics
This filing focuses exclusively on the fair value and cumulative performance of financial derivative instruments. It does not report consolidated revenue, profit, cash flow, margins, debt, or liquidity metrics for the company.
| Derivative Instrument | Purpose | Notional Amount | Asset/Liability Variable | Currency | Fair Value (Current Month) | Fair Value (Previous Month) |
|---|---|---|---|---|---|---|
| Cross Currency Swaps | Coverage | USD 132 MM | Corporate bond | PEN | 13,530,591 | 1,538,982 |
| Cross Currency Swaps | Negotiation | USD 18 MM | Exchange rate | PEN | 1,890,409 | 215,018 |
Cumulative Performance: Total profit/loss for derivative financial instruments during the year (as of May 31, 2019) is PEN 420,000.
Material Changes
- Fair Value Increase: The fair value of Cross Currency Swaps used for coverage increased significantly from PEN 1,538,982 in the previous month to PEN 13,530,591 in the current month.
- Negotiation Swaps: The fair value of Cross Currency Swaps used for negotiation increased from PEN 215,018 to PEN 1,890,409.
Outlook, Risks, and Unusual Items
- Valuation Methodology: Fair values are estimated internally in accordance with International Financial Reporting Standards (IFRS) using market data. The filing notes these amounts are preliminary and subject to change.
- Accounting Treatment: Cumulative profit/loss includes variations in fair value, exchange differences, deferred income, and accrued commissions recorded in both the statement of profit and loss and other comprehensive income.
- Regulatory Compliance: The report is submitted pursuant to instructions from the Superintendency of Securities (SMV) of Peru regarding the fight against corruption and impunity.
Investor Verification Checklist
- Verify the final audited fair value of the derivative instruments, as the current figures are marked as preliminary.
- Confirm the impact of the PEN 420,000 cumulative gain on the company's overall 2019 net income.
- Review the underlying corporate bond and exchange rate movements that drove the significant increase in fair value for the coverage swaps.
- Check subsequent filings for updates on the USD 132 MM and USD 18 MM notional positions.