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Other financial liabilities
12 Months Ended
Dec. 31, 2020
Disclosure of financial liabilities [abstract]  
Other financial liabilities [Text Block]

15. Other financial liabilities

    Dec. 31, 2020     Dec. 31, 2019  
Current            
Derivative liabilities $ 15,312   $ 10,295  
Embedded derivatives (note 27d)       9,074  
Other financial liabilities at amortized cost   9,401     8,707  
    24,713     28,076  
             
Non-current            
Deferred Rosemont acquisition consideration   25,961     24,491  
Gold prepayment liability   137,031      
Other financial liabilities at amortized cost   31,386     15,293  
    194,378     39,784  
  $ 219,091   $ 67,860  

 

The derivative liabilities include derivative and hedging transactions. Derivative liabilities are carried at their fair value with changes in fair value recorded to the consolidated income statements. The fair value adjustments for hedging type derivatives are recorded in revenue. Fair value adjustments for embedded derivatives are recorded within net finance expense.

On May 7, 2020, the Company entered into an agreement and received $115,005 in exchange for the delivery of 79,954 gold ounces starting January 2022 and ending in December 2023, which were valued at gold forward curve prices averaging $1,682 per ounce at the time of the transaction. The agreement has been assessed as a financial liability that has been designated as fair value through profit or loss within change in fair value of financial instruments, with a component of the fair value related to the fluctuation in the Company's own credit risk being recorded to other comprehensive income. The fair value adjustment recorded in profit or loss and other comprehensive income for the year ended December 31, 2020 totaled loss of $22,026.

 

Other financial liabilities at amortized cost relate to agreements with communities near the Constancia operation which allow Hudbay to extract minerals over the useful life of the Constancia operation, carry out exploration and evaluation activities in the area and provide Hudbay with community support to operate in the region. The changes in other financial liabilities at amortized cost during the year ended December 31, 2020 primarily relates to changes in estimated community payments arising from the execution of the Pampacancha surface rights agreement and individual land user agreements with certain community members, partially offset by disbursements.

 

The following table summarizes changes in other financial liabilities at amortized cost:

 

Balance, January 1, 2019 $ 21,361  
Net additions   7,369  
Disbursements   (6,351 )
Accretion   1,222  
Effects of changes in foreign exchange   399  
Balance, December 31, 2019 $ 24,000  
Net additions   116,233  
Disbursements   (98,375 )
Accretion   3,641  
Effects of changes in foreign exchange   (4,712 )
Balance, December 31, 2020 $ 40,787