Notes to the consolidated financial statements continued
For the year ended 31 December 2008 [extract]
36 Financial risk management[extract]
(a) Foreign currency risk[extract]
1 Minera Santa Cruz, one of the Group’s subsidiaries which is the legal owner of the San José mine, had debts denominated in US dollars. As Minera Santa Cruz’s functional currency was the peso during 2007, the translation of this loan into Pesos created a loss. Following the commencement of operations the Group was required to change the functional currency in Minera Santa Cruz to US dollars and as a result, these loans were no longer being exposed to foreign currency risk.