INDEPENDENCE GROUP NL ANNUAL REPORT 2017

Notes to the consolidated financial statements 30 June 2017 (continued) 20 Derivatives (continued) Diesel (continued) The following table details the diesel fuel hedging contracts outstanding at the reporting date: Barrels of oil Weighted average price (AUD/barrel) Fair value 2017 2016 2017 2016 2017 $'000 2016 $'000 0 - 6 months 103,557 20,228 76.57 61.50 36 341 6 -12 months 104,161 29,532 78.56 65.61 (91) 443 1 - 2 years 54,346 60,525 81.08 74.37 (251) 799 Total 262,064 110,285 78.30 69.67 (306) 1,583 Copper At 30 June 2017, the Group held various copper commodity contracts denominated in USD. Foreign exchange contracts are also held which match the terms of the commodity contracts. These contracts are used to reduce the exposure to a future decrease in the AUD market value of copper sales. The following table details the copper contracts outstanding at the reporting date: Tonnes of metal Weighted average price (USD/metric tonne) Fair value 2017 2016 2017 2016 2017 $'000 2016 $'000 0 - 6 months 1,020 - 5,613 - (435) - 6 - 12 months 1,020 - 5,613 - (475) - Total 2,040 - 5,613 - (910) - The following table details the forward foreign currency contracts outstanding at the reporting date: Notional amounts (USD) Weighted average AUD:USD exchange rate Fair value 2017 $'000 2016 $'000 2017 2016 2017 $'000 2016 $'000 Sell USD forward 0 - 6 months 5,725 - 0.7353 - 330 - 6 - 12 months 5,726 - 0.7336 - 327 - Total 11,451 - 0.7345 - 657 - Gold There were no gold collar structures (ie purchased put and sold call) held by the Group at 30 June 2017. The table below details the outstanding gold collar structures which were designated as hedges of future gold sales and were designated as cash flow hedges at 30 June 2016. These comprise: Ounces of metal Weighted average price (AUD/ounce) Fair value 2017 2016 2017 2016 2017 $'000 2016 $'000 0 - 6 months Gold put options purchased - 12,500 - 1,330 - 4 Gold call options sold - 12,500 - 1,593 - (2,491) Total/weighted average strike price Gold put options purchased - 12,500 - 1,330 - 4 Gold call options sold - 12,500 - 1,593 - (2,491) Independence Group NL 67 IGO ANNUAL REPORT 2017— 97 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017