in PLN millions, unless otherwise stated
As at 31 December 2020, the most significant item in other financial assets was cash accumulated on bank deposits in the special purpose funds: Mine Closure Fund and Tailings Storage Facility Restoration Fund in the amount of PLN 402 million.
All special purpose deposits of the Group, which are dedicated to collection of cash for future decommissioning costs of mines and other technological facilities and restoration of tailing storage facilities, are carried out by banks with the highest or medium-high ratings confirming the security of the deposited cash.
The tables below presents the level of cash concentration within special purpose funds dedicated to the collection of cash by the Group for future decommissioning costs of mines and other technological facilities and restoration of tailing storage facilities, according to the credit ratings of financial institutions holding special purpose deposits and according to institutions in which this cash is held.
| Rating level |
As at |
As at |
|
|---|---|---|---|
| Highest | AAA to AA- according to S&P and Fitch, and from Aaa to Aa3 according to Moody’s | 10% | 13% |
| Medium-high | from A+ to A- according to S&P and Fitch, and from A1 to A3 according to Moody’s | 90% | 87% |
|
As at |
As at |
|
|---|---|---|
| Counterparty 1 | 314 | 339 |
| Counterparty 2 | 47 | 50 |
| Counterparty 3 | 41 | – |
| Total | 402 | 389 |
Impairment losses on cash accumulated on bank accounts of special purpose funds: the Mine Closure Fund and Tailings Storage Facility Restoration Fund, were determined individually for each balance of a given financial institution. External bank ratings were used to measure credit risk. The analysis determined that these assets have a low credit risk at the reporting date. The Group used a simplification permitted by the standard and the impairment loss was determined on the basis of 12-month credit losses. The calculation of impairment determined that the amount of impairment loss is insignificant. These assets are classified to Degree 1 of the impairment model