IGO Interactive Annual Report 2018

Notes to the consolidated financial statements 30 June 2018 (continued) 21 Financial risk management (continued) (d) Recognised fair value measurements (continued) (i) Fair value hierarchy (continued) Level 1 $'000 Level 2 $'000 Level 3 $'000 Total $'000 At 30 June 2018 Financial assets Listed investments 24,294 - - 24,294 Derivative instruments Diesel hedging contracts - 1,990 - 1,990 24,294 1,990 - 26,284 Level 1 $'000 Level 2 $'000 Level 3 $'000 Total $'000 At 30 June 2017 Financial assets Listed investments 15,348 - - 15,348 Derivative instruments Foreign currency hedging contracts - 657 - 657 15,348 657 - 16,005 Financial liabilities Derivative instruments Commodity hedging contracts - 910 - 910 Diesel hedging contracts - 306 - 306 - 1,216 - 1,216 The Group did not measure any financial assets or financial liabilities at fair value on a non-recurring basis as at 30 June 2018 and did not transfer any fair value amounts between the fair value hierarchy levels during the year ended 30 June 2018. (ii) Valuation techniques used to determine level 1 fair values The fair value of financial instruments traded in active markets (such as publicly traded derivatives and trading and available-for-sale securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the Group is the current bid price. These instruments are included in level 1. (iii) Valuation techniques used to determine level 2 and level 3 fair values The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. Specific valuation techniques used to value financial instruments include: • The use of quoted market prices or dealer quotes for similar instruments. • The fair value of commodity and forward foreign exchange contracts is determined using forward commodity and exchange rates at the reporting date. • Other techniques, such as discounted cash flow analysis, are used to determine fair value for the remaining financial instruments. Independence Group NL 45 IGO ANNUAL REPORT 2018— 109 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30 JUNE 2018