Business Context and Reporting Period
Cementos Pacasmayo S.A.A. (Pacasmayo Cement Corporation), a Peruvian cement manufacturer, filed this Form 6-K on March 23, 2016. The report covers the month of March 2016 and specifically details the monthly position of financial derivatives as of February 29, 2016.
Key Financial Metrics
The filing focuses exclusively on financial derivative instruments and does not provide consolidated revenue, profit, cash flow, or debt figures for the period.
- Derivative Instrument: Cross Currency Swaps.
- Purpose: Coverage of USD 300 million total exposure.
- Notional Amount: S/. 177,337,000 (Current Month) vs. S/. 148,955,000 (Previous Month).
- Currency: Peruvian Soles (S/).
Material Changes and Derivative Valuation
The filing details the calculation of gains and losses from derivative financial instruments as of February 29, 2016, in accordance with the Superintendencia del Mercado de Valores (SMV) instructions:
- Net Equity Impact: An increase in fair value of S/. 52,567,000 was offset by an unrealized loss from exchange rate differences on US$ bonds of S/. 34,200,000 and income tax of S/. 4,775,000.
- Profit and Loss Impact: Commissions from Cross Currency Swap contracts totaling S/. 4,876,000 were recorded as a financial expense.
- Valuation Method: Fair values are estimated internally using International Financial Reporting Standards (IFRS) and market data, subject to change.
Guidance, Risks, and Contingencies
The filing does not contain management guidance, outlook, or specific risk factors beyond the inherent nature of the derivatives. It notes that the fair value amounts are estimates based on market data and are subject to change. The filing explicitly states that total revenues, assets, and liabilities are not included in this specific report and would be taken from the company's last available financial information.
Investor Verification Checklist
- Verify the company's most recent audited financial statements for total revenue, assets, and liabilities, as this 6-K does not provide them.
- Confirm the impact of the S/. 4,876,000 commission expense on the quarterly net income.
- Review the company's exposure to USD/Soles exchange rate fluctuations given the S/. 34,200,000 unrealized loss on US$ bonds.
- Monitor future filings for updates on the fair value of the Cross Currency Swaps, as these are subject to market changes.