Business Context and Reporting Period
Company: Cementos Pacasmayo S.A.A. (Pacasmayo Cement Corporation)
Filing Type: Form 6-K (Report of Foreign Issuer)
Reporting Period: Monthly position as of January 31, 2018 (filed February 14, 2019)
Jurisdiction: Republic of Peru
This filing discloses the monthly position of financial derivatives held by the company, specifically Cross Currency Swaps (CCS), in compliance with Peruvian securities regulations.
Key Financial Metrics: Derivative Instruments
The filing focuses exclusively on the fair value and notional amounts of financial derivatives. It 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 Liability | PEN | 894,962 | 9,474,000 |
| Cross Currency Swaps | Negotiation | USD 18 MM | Exchange Rate | PEN | 125,038 | 1,324,000 |
| Cross Currency Swaps | Negotiation | USD 70 MM | Exchange Rate | PEN | — | 1,469,865 |
Accumulative Gain/Loss: PEN -3,580,000 (Total profit/loss during the year due to derivative financial instruments).
Material Changes and Settlements
- Settlement of Negotiation CCS: A USD 70 MM negotiation Cross Currency Swap, which had a fair value of PEN 1,469,865 as of December 31, 2018, was settled in January 2019. Consequently, its fair value is reported as zero for the current month.
- Valuation Fluctuations: Significant decreases in fair value were observed for the Coverage CCS (from PEN 9.47M to PEN 0.89M) and the USD 18 MM Negotiation CCS (from PEN 1.32M to PEN 0.12M) compared to the previous month.
Management Commentary, Risks, and Contingencies
- 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: The cumulative profit/loss includes transactions recorded in both other comprehensive income and the profit and loss statement, covering fair value variations, exchange differences, deferred income, and accrued commissions.
- Risk Exposure: The company utilizes derivatives primarily for hedging corporate bond liabilities (Coverage) and managing exchange rate exposure (Negotiation).
Investor Verification Checklist
- Verify the impact of the PEN -3,580,000 derivative loss on the company's consolidated net income for the fiscal year.
- Confirm the settlement details of the USD 70 MM swap and ensure no contingent liabilities remain from this transaction.
- Review the full 20-F annual report for consolidated revenue, EBITDA, and total debt figures, as this 6-K filing contains only derivative-specific data.
- Assess the sensitivity of the remaining USD 150 MM in derivative notional amounts to future exchange rate fluctuations between PEN and USD.