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: Monthly position as of April 30, 2019, filed on May 13, 2019.
Subject: Disclosure of financial derivative instruments and their fair value positions.
Key Financial Metrics
The filing focuses exclusively on financial derivatives and does not provide consolidated revenue, profit, cash flow, or debt figures for the company.
| Instrument Type | Purpose | Notional Amount | Variable | Currency | Fair Value (Current Month) | Fair Value (Previous Month) |
|---|---|---|---|---|---|---|
| Cross Currency Swaps | Coverage | USD 132 MM | Corporate bond | PEN | 1,538,982 | 1,880,297 |
| Cross Currency Swaps | Negotiation | USD 18 MM | Exchange rate | PEN | 215,018 | 262,703 |
Cumulative Impact: Total profit/loss for derivative financial instruments during the year (as of April 30, 2019) is a loss of PEN 4,216,000.
Material Changes
- Fair Value Fluctuation: The fair value of the "Coverage" Cross Currency Swaps decreased from PEN 1,880,297 in the previous month to PEN 1,538,982 in the current month.
- Negotiation Swaps: The fair value of "Negotiation" Cross Currency Swaps decreased from PEN 262,703 to PEN 215,018.
- Year-to-Date Performance: The company recorded a cumulative loss of PEN 4,216,000 on derivatives for the year, encompassing variations in fair value, exchange differences, deferred income, and accrued commissions.
Outlook, Risks, and Management Commentary
Valuation Methodology: Fair values are estimated internally in accordance with International Financial Reporting Standards (IFRS) using market data-based valuation techniques. Management notes these amounts are preliminary and subject to change.
Accounting Treatment: The cumulative profit/loss includes transactions recorded in both the statement of profit and loss and other comprehensive income.
Risks: The filing highlights exposure to exchange rate fluctuations and corporate bond liabilities, managed through cross-currency swaps. The filing text does not provide specific forward-looking guidance or commentary on operational risks beyond the derivative positions.
Investor Verification Checklist
- Verify the impact of the PEN 4,216,000 cumulative derivative loss on the company's overall net income for the fiscal year.
- Confirm the total outstanding debt principal hedged by the USD 132 MM coverage swaps to assess leverage ratios.
- Review the full annual report (Form 20-F) for consolidated revenue, EBITDA, and liquidity metrics not included in this 6-K.
- Monitor the "preliminary" nature of the fair value estimates for potential adjustments in subsequent filings.