WEST AFRICA’S NEWEST LARGE GOLD PRODUCER For the year ended 30 June 2011 Notes to the Consolidated Financial Statements The Group is party to derivative financial instruments in the normal course of business in order to hedge exposure to  future price and currency fluctuations in the primary commodity markets in which it operates. This is done in accordance  with the Group’s financial risk management policies. The Group uses cash flow designated USD forward metal contracts to hedge movements in USD base metal prices on its  anticipated sales of gold. At 30 June 2011 there were cash flow designated hedge contracts in place for 230,000 ounces  of gold with settlements scheduled between March 2012 and December 2014. These hedge contracts were designated  as effective cash flow hedges beginning 1 October 2010.  Some contracts were in place prior to 1 October 2010, and were previously treated as though they would be settled by physical  delivery. However, the Group may settle by other means including by cash or by exchanging for other financial instruments. As  some contracts were in place prior to 1 October 2010 when hedge accounting criteria were not met, and given the increase  in gold price from the date of the contracts to 30 September 2010, they carried a negative value of US$22.4 million (AUD23.0  million at 1 October 2010), which has been recognised in the statement of comprehensive income. From 1 October 2010 the portion of the gain or loss on these hedging instruments that are determined to be an  effective hedge are recognised and retained directly in equity. The ineffective portion will be recognised in statement of  comprehensive income. Information about the Group’s exposure to credit risk, price risk and liquidity risk related to the undiscounted cash flow  exposure from derivative contracts is provided at note 17. Forward metal contracts – cash flow hedges: Risk exposures and fair value measurements 16. BORROWINGS  (i)  The Group drew down on its finance facility provided by Macquarie Bank Limited and Credit Suisse AG during  the year. This is a secured loan facility with fixed repayments, with the balance repayable by September 2014. Interest is  based on LIBOR plus a 3.75% margin pre completion, 3.25% margin post completion. The debt and hedge facilities provided by Macquarie Bank Limited and Credit Suisse AG are secured by a guarantee and  indemnity from the company covering all money due under the facilities as well as mortgages over certain of the company’s  assets including its shares in Kojina Resources Ltd (“Kojina”) and receivables under intercompany loan arrangements with  subsidiaries. In addition, the security package includes fixed and floating charges over all of the assets and undertakings of  both Koijina and Central Ashanti Gold Limited including a first ranking mortgage over CAGP tenements. Information about the Group’s exposure to interest rate and foreign currency changes is provided in note 17.  Secured liabilities and assets pledged as security Risk exposures and fair value measurements 68 Current  Interest-bearing loan facility (i)  20,760,593  -  Non-Current  Interest-bearing loan facility  (i)  59,450,788  -  CONSOLIDA TED 2011  2010 $  $ 15. DERIVATIVE FINANCIAL INSTRUMENTS  Current Cash flow hedge liability  10,837,822  -   $_{Non-Current}$ Cash flow hedge liability  48,471,820  - 