6-K 1 gf_quarter.htm
FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of January 2007
Commission File Number 1-31318
Gold Fields Limited
(Translation of registrant's name into English)
24 St. Andrews Rd.
Parktown, 2193
South Africa
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under
cover Form 20-F or Form 40-F.
Form 20-F..x... Form 40-F.....
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1): ________
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7): ________
Indicate by check mark whether by furnishing the information contained in this Form,
the registrant is also thereby furnishing the information to the Commission pursuant to
Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ..... No ..x...
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82- ________
QUARTER ENDED
31 DECEMBER 2006
News release
Q2 F2007 results
- Unaudited -
we deliver
Operating profit maintained at R2 billion (US$270 million)
generating bottom line earnings of
R767 million (US$104 million)
JOHANNESBURG. 25 January 2007 – Gold Fields Limited (NYSE & JSE: GFI) today
announced net earnings for the December 2006 quarter of R767 million compared with R698
million in the September 2006 quarter and R284 million for the December quarter of 2005. In
US dollar terms net earnings for the December 2006 quarter were US$104 million compared
with US$98 million in the September 2006 quarter and US$44 million for the December
quarter of 2005. Net earnings excluding gains and losses on financial instruments and
foreign debt net of cash and exceptional items were R564 million (US$76 million) for the
December 2006 quarter compared with R702 million (US$99 million) for the September 2006
quarter.
December 2006 quarter highlights:
•
Attributable gold production increased by 10,000 ounces to 1,015,000 ounces;
•
Acquisition of Barrick Gold Corporation’s 50 per cent interest in South Deep completed –
effective date 1 December 2006. Financed by bridging finance of R8.6 billion (US$1.2
billion) and the issue of 18,701,944 Gold Fields shares worth R2.3 billion (US$325
million);
•
As at 18 January 2007, Gold Fields had received acceptances in respect of
approximately 95.6 per cent of the issued share capital of Western Areas. This was
financed by the issue of 43,920,023 Gold Fields shares to shareholders of Western
Areas. Step is being taken to increase this to 100 per cent with the “squeeze out
provisions” of the Companies Act;
•
South African Government formally approved the conversion of Driefontein, Kloof and
Beatrix old order mining licenses into new order mining licenses;
•
Tarkwa announced US$175 million (R1.25 billion) mill and heap leach expansion
projects;
•
Interim dividend declared of 90 SA cents per share payable on 19 February 2007.
Ian Cockerill, Chief Executive Officer of Gold Fields, said:
“Overall the Group’s performance for the December quarter was steady with production being
largely as expected with the exception of Kloof which had a disappointing quarter. Given the
cost escalations being experienced in the mining industry, our efforts in controlling costs in
this challenging environment are satisfying.
The two significant achievements during the quarter under review have been the conversion
of the mining rights for all three of our South African operations and our acquisition of the
South Deep Gold Mine. While both of these achievements are cornerstones for the future of
our company in South Africa, much work remains to be done. While our new order mining
rights have now been approved, transformation is an ongoing imperative and Gold Fields is
committed to achieving the targets which it has set itself in this regard.
The integration of South Deep into Gold Fields is of the highest priority. We are analyzing the
existing South Deep mine plan and feasibility study, and will be ramping up the production
profile of this mine, to achieve its very significant potential.”
Stock data
JSE Limited – (GFI)
Number of shares in issue
Range - Quarter
ZAR119.40 – ZAR143.25
- at end December 2006
551,527,036
Average Volume - Quarter 2,200,535 shares / day
- average for the quarter
517,356,586
NYSE – (GFI)
Free Float
100%
Range - Quarter
US$16.37 – US$19.48
ADR Ratio
1:1
Average Volume - Quarter 1,823,989 shares / day
Bloomberg / Reuters
GFISJ / GFLJ.J
1
I
GOLD FIELDS RESULTS Q2F2007
H e a l t h a n d s a f e t y
We regret to report three fatal injuries during the December quarter all
of which occurred at the South African operations. Two of the
accidents were tramming related and the third a fall of ground. The
fatal injury frequency rate for the December quarter was 0.08 per
million man hours worked, an improvement on the previous quarter’s
figure of 0.25. The lost time injury frequency rate improved from 13.15
to 10.37, the serious injury frequency rate improved from 7.1 to 5.4 and
the days lost frequency rate improved from 414 to 325 per million man
hours worked.
Management is continuing to actively seek improvements to meet the
Ontario safety standards on all of our mines. Behavioural based
interventions continue at all operations in the group.
F i n a n c i a l r e v i e w
Quarter ended 31 December 2006 compared
with quarter ended 30 September 2006
Revenue
Attributable gold production increased by 1 per cent from 1,005,000
ounces in the September 2006 quarter to 1,015,000 ounces in the
December quarter. Attributable production at the South African
operations increased marginally from 649,000 ounces to 652,000
ounces in the December quarter. Attributable production at the
international operations increased 2 per cent from 356,000 ounces to
363,000 ounces.
The marginal increase of gold production at the South African
operations over the previous quarter was primarily due to the inclusion
of South Deep, which produced 24,500 attributable ounces as from the
effective date of acquisition of 1 December 2006. Production at
Driefontein decreased as a result of lower underground tonnages
driven by re-planning at 4 shaft where volumes have been reduced by
40 per cent. Gold production at Kloof decreased on the back of lower
yields caused by a lower mine call factor. Beatrix’s gold production
was consistent quarter on quarter, with lower volumes offset by higher
yields.
At the international operations, all mines had an increase in gold
production, other than the Agnew mine in Australia. Gold production at
Tarkwa was higher than the September quarter due to record
throughput and higher CIL yields. Damang’s gold production increased
on the back of increased fresh ore tonnages from the Damang and
Juno 2 South West (J2SW) open pits. Choco 10 delivered increased
production, but strike action early in December, a SAG mill shutdown
and water shortages all adversely affected production. Water
shortages will continue into the coming quarter and the ongoing
strategy of reducing reliance on rain water is being advanced. At St
Ives the marginal increase in gold production came from increased
throughput and yields from the Lefroy mill and improvements from the
heap leach facility. At Agnew, gold production decreased by 10 per
cent for the quarter as a result of a 15 per cent reduction in
underground volumes. Underground volumes were affected by
restricted access due to poor ground conditions and the late
commissioning of the paste fill plant which affected fill placement. This
was partly offset by increased volumes from Songvang.
The average quarterly US dollar gold price decreased from US$622
per ounce in the September quarter to US$609 per ounce this quarter,
a 2 per cent decrease. The average rand/US dollar exchange rate
weakened by 4 per cent quarter on quarter, averaging R7.38,
compared with R7.10 in the September quarter. As a result of the
weaker rand, the rand gold price increased from R142,035 per
kilogram to R144,485 per kilogram, a 2 per cent improvement.
The increase in the rand gold price achieved and higher production
resulted in revenue increasing in rand terms from R4,732 million
(US$667 million) to R4,854 million (US$658 million) quarter on quarter.
Operating costs
During financial 2006 a pro-forma total cash cost for the South African
operations was provided in addition to the actual disclosed total cash
cost. This pro-forma cash cost was calculated on the basis that Ore
Reserve Development (ORD) was, like our peers, capitalised to the
Balance Sheet. As from 1 July 2006 the Group accounting policy has
changed; ORD is now and has retrospectively been capitalised, with
the resultant assets being amortised on a units of production basis –
see page 10 for further details. As a result, all prior year and quarterly
results in this report have been restated in line with this policy.
Operating costs for December 2006, amounted to R2,975 million
(US$403 million) compared with R2,764 million (US$389 million) in the
September quarter, an increase of 8 per cent. The increase at the
South African operations amounted to 9 per cent, from R1,644 million
(US$232 million) to R1,795 million (US$244 million). Of the R151
million (US$12 million) increase, R113 million (US$16 million) is due to
the inclusion of South Deep as from 1 December 2006. The increase
at the remaining South African operations amounted to R38 million or 2
per cent quarter on quarter. Driefontein increased by R11 million due
(US$2 million) to additional equipping and opening-up, together with
additional secondary support in haulages. Kloof increased by R14
million (US$2 million) due to increased volumes mined and processed.
Beatrix also increased by R14 million (US$2 million) due to additional
equipping and maintenance, together with additional shifts worked to
reduce the impact of the Christmas break.
South African Rand
S a l i e n t f e a t u r e s
United States Dollars
Six months to
Quarter
Quarter
Six months to
Restated˜
Dec
2005
Dec
2006
Restated˜
Dec
2005
Sept
2006
Dec
2006
Dec
2006
Sept
2006
Restated˜
Dec
2005
Dec
2006
Restated˜
Dec
2005
63,234
62,842
32,342
31,262
31,580 kg
Gold produced*
oz (000)
1,015
1,005
1,040
2,020
2,033
66,619
81,793
66,054
79,862
83,707 R/kg
Total cash costs
$/oz
353
350
315
351
318
23,977
25,967
12,089
12,858
13,109 000
Tons milled
000
13,109
12,858
12,089
25,967
23,977
96,526 143,265 101,184 142,035 144,485 R/kg
Revenue
$/oz
609
622
482
615
460
193
221
194
215
227 R/ton
Operating costs
$/ton
31
30
30
31
30
1,888
3,956
1,150
1,987
1,969 Rm
Operating profit
$m
267
280
176
546
290
29
41
33
42
41 %
Operating margin
%
41
42
33
41
29
349
1,465
284
698
767 Rm
$m
104
98
44
202
53
71
289
58
141
148 SA c.p.s.
Net earnings
US c.p.s.
20
20
9
40
11
345
1,454
283
692
762 Rm
$m
103
98
43
201
53
70
287
57
140
147 SA c.p.s.
Headline earnings
US c.p.s.
20
20
9
40
11
366
1,265
297
702
564 Rm
$m
76
99
46
175
56
74
250
60
142
108 SA c.p.s.
Net earnings
excluding gains and
losses on financial
instruments and
foreign debt net of
cash and
exceptional items
US c.p.s.
15
20
9
35
11
* Attributable – All companies wholly owned except for Ghana (71.1%), Choco 10 (95%) and South Deep (91.95%).
˜ Change in accounting policy – Ore Reserve Development (ORD) costs are capitalised and amortised.
GOLD FIELDS RESULTS Q2F2007
I
2
Costs at the international operations, including gold-in-process (GIP)
movements, amounted to R1,112 million (US$151 million), compared
with R1,101 million (US$155 million) incurred in the September
quarter. In dollar terms this is a 3 per cent decrease in costs despite
the increase in gold production. In dollar terms, including GIP, costs at
Tarkwa decreased reflecting an increase in GIP inventory partly offset
by the cost of on-mine power generation in line with the national load
shedding requirements, included for the full quarter compared with only
one month’s power costs included in the September quarter. Costs at
Tarkwa were also impacted by an increase in fleet maintenance costs
as forecast. At Damang, operating costs increased due to the
additional power costs and increased production from the pits.
Operating costs at Choco 10 increased as a result of the increased
production. At St Ives, operating costs in Australian dollar terms
including GIP, decreased by 10 per cent reflecting a decrease in the
waste normalisation charge following completion of mining at the Mars
and Agamemnon open pits early in the December quarter. Waste is
accounted for over the life of a pit on a per unit ounce rate basis.
Agnew reported similar costs quarter on quarter.
Effect of capitalising Ore Reserve Development (ORD) on unit
costs
Ore Reserve Development has been capitalised in the December and
September 2006 quarter’s results and retrospectively in the
comparative results in this report. This brings its accounting treatment
in line with our peers and is the preferred methodology for accounting
for ORD in the industry. The impact of the capitalisation is given in the
tables at the bottom of page 16 (impact on total cash costs) and page
21 (impact on cost per ton milled).
Operating margin
The net effect of the changes in revenue and costs, after taking into
account gold-in-process movements, was an operating profit of R1,969
million (US$267 million). This is 1 per cent below the R1,987 million
(US$280 million) achieved in the September quarter. The Group
operating margin was virtually unchanged at 41 per cent. The margin
at the South African operations decreased from 43 per cent to 39 per
cent, while the margin at the international operations increased from 41
per cent to 43 per cent, in line with the lower costs and increased
production.
Amortisation
Amortisation increased from R681 million (US$96 million) in the
September quarter to R745 million (US$101 million) in the December
quarter. There was a marginal increase at the International operations
in dollar terms (R32 million in rand terms). The balance of R32 million
is at the South African operations with R9 million of this at South Deep
for the month of December.
Other
Net interest and investment income decreased from an income of R17
million (US$2 million) in the September quarter to net interest paid of
R27 million (US$4 million) this quarter. This change reflects interest of
R32 million (US$4 million) paid on loans to finance the South Deep
acquisition and lower interest received due to an average lower cash
balance quarter on quarter.
The gain on foreign debt, net of cash, of R264 million (US$36 million),
compares with a loss of R3 million (US$1 million) in the September
quarter. The December quarter’s gain consists largely of an unrealised
exchange gain on the US$1.2 billion loan raised to finance the
acquisition of 50 per cent of the South Deep mine amounting to R223
million (US$30 million), and exchange gains on the translation of the
Western Areas gold derivative and deferred premium of R42 million
(US$6 million) and R15 million (US$2 million) respectively. This was
partly offset by an unrealised exchange loss of R13 million (US$2
million) relating to a US dollar denominated insurance receivable at
South Deep.
The loss on financial instruments doubled from R9 million (US$1
million) to R19 million (US$3 million) for the December quarter. This
quarter’s loss comprises marked to market losses on the Western
Areas options and deferred premium of R44 million (US$6 million), R21
million (US$3 million) on the US dollar / Rand forward purchase, and
R2 million (US$0.3 million) on the diesel hedge taken out in Ghana.
This was offset by marked to market gains on share warrants of R28
million (US$4 million), R18 million (US$3 million) on gold purchases
effected by Western Areas and R2 million (US$0.3 million) on the US
dollar / Australia dollar call options.
Exploration
Exploration expenditure in rand terms was virtually unchanged at R65
million (US$9 million) quarter on quarter. Please refer to the
Exploration and Corporate Development section for more detail.
Taxation
Taxation for the quarter amounted to R480 million (US$65 million)
compared with R464 million (US$65 million) in the September quarter.
The tax provision includes normal and deferred taxation on all
operations together with government royalties at the international
operations.
Earnings
Net profit attributable to ordinary shareholders amounted to R767
million (US$104 million) or 148 SA cents per share (US$0.20 per
share), compared with R698 million (US$98 million) or 141 SA cents
per share (US$0.20 per share) in the previous quarter and represents
an increase of 10 per cent.
Headline earnings i.e. earnings less the after tax effect of asset sales,
impairments and the sale of investments, was R762 million (US$103
million) or 147 SA cents per share (US$0.20 per share), compared with
earnings of R692 million (US$98 million) or 140 SA cents per share
(US$0.20 per share) last quarter.
Earnings excluding exceptional items as well as net gains and losses
on financial instruments and foreign debt net of cash amounted to
R564 million (US$76 million) or 108 SA cents per share (US$0.15 per
share), compared with earnings of R702 million (US$99 million) or 142
SA cents per share (US$0.20 per share) reported last quarter. The
decrease in these earnings is mainly due to the after tax effect of
increases in amortisation of R45 million (US$6 million), sundry costs
and royalties of R32 million (US$4 million), a decrease in interest and
investment income of R42 million (US$6 million) and a decrease in
operating profit of R12 million (US$2 million).
Cash flow
Cash flow from operating activities for the quarter was R1,381 million
(US$190 million), which is 14 per cent lower than the operating cash
flow generated in the September quarter of R1,609 million (US$227
million). This decrease in cash flow reflects an increase in working
capital as a result of an increase in inventories and receivables with the
latter impacted by the timing of gold sales in the quarter.
There were no dividends paid during the quarter. In the September
quarter dividends paid amounted to R556 million (US$78 million) of
which R11 million (US$2 million) was paid to outside shareholders in
Ghana.
Capital expenditure amounted to R1,376 million (US$187 million)
compared with R1,188 million (US$167 million) in the September
quarter, an increase of R188 million (US$20 million). The majority of
this increase was at the South African operations, where capital
expenditure increased from R433 million (US$61 million) in the
September quarter to R565 million (US$77 million) in the December
quarter. The increase in capital expenditure is mainly due to additional
development, upgrading the hostels and the inclusion of South Deep.
The main areas of capital expenditure during the quarter were ore
reserve development at Driefontein, Kloof and Beatrix of R94 million
(US$13 million), R96 million (US$8 million) and R55 million (US$7
million) respectively, as well as the other major projects. At Driefontein
expenditure at the 1 and 5 shaft complex amounted to R20 million
(US$3 million), R13 million (US$2 million) on the 4 shaft pillar
extraction project and R10 million (US$1 million) on the 9 shaft
deepening project. At Kloof expenditure on the 4 sub-vertical shaft
amounted to R17 million (US$2 million) for the quarter, R13 million
(US$2 million) on the 1 shaft pillar extraction project and R12 million
(US$2 million) on the KEA drop down project. At Beatrix expenditure
on the 3 shaft project amounted to R35 million (US$5 million) together
with development on West shaft of R22 million (US$3 million).
Expenditure at South Deep during December amounted to R41 million
(US$6 million) including ore reserve development.
3
I
GOLD FIELDS RESULTS Q2F2007
At the Ghanaian operations, capital expenditure at Tarkwa increased
significantly from R90 million (US$13 million) to R189 million (US$26
million) quarter on quarter. The main areas of capital expenditure were
the purchase of secondary mining fleet (US$14 million), capital waste
mining (Teberebie cutback - US$7 million), expenditure on the initial
work carried out on the CIL expansion project (US$3 million) and
progress on other minor projects. Damang at R53 million (US$7
million) was similar to the September quarter.
At Choco 10 capital expenditure decreased by R39 million (US$6
million) from R77 million (US$11 million) to R38 million (US$5 million)
as exploration drilling costs decreased and the initial plant upgrade
was completed in the September quarter.
The Australian operations incurred capital expenditure of R182 million
(A$32 million), compared with R174 million (A$32 million) in the
September quarter. Expenditure at St Ives increased by R10 million
(A$1 million) from R116 million (A$21 million) to R126 million (A$22
million) due to increased development costs. At Agnew, capital
expenditure at R56 million (A$10 million) was similar to the previous
quarter.
Capital expenditure at the Cerro Corona mine in Peru amounted to
R341 million (US$46 million) in the December quarter compared with
R361 million (US$51 million) in the September quarter.
Spending on other investment activities amounted to R8,760 million
(US$1,210 million) of which R8,677 million (US$1,198 million) was for
the purchase of South Deep and R78 million (US$11 million) for the
purchase of shares in Conquest Mining in Australia and shares in Lero
Gold Corporation, which is listed on the Toronto Stock Exchange with
assets in Kyrgyzstan, Kazakhstan and Russia.
The cash outflow from financing activities amounted to R9,016 million
(US$1,261 million) of which R9,058 million (US$1.2 billion) was for
loans received to finance the South Deep acquisition.
Net cash inflow for the quarter was R262 million (US$55 million). After
accounting for a translation loss of R73 million (US$14 million), the
cash balance at the end of December was R1,413 million (US$202
million). The cash balance at the end of September was R1,224
million (US$161 million).
D e t a i l e d a n d o p e r a t i o n a l r e v i e w
Cost and revenue optimisation initiatives
Project 500
Project 500 was initiated at the South African operations in September
2003 to increase revenue and reduce costs through two sub-projects
i.e. Project 400 and Project 100. These projects have proved
successful and led to additional projects, Project 100+ and Project
Beyond as detailed below.
Project 400
Project 400 was aimed at improving revenue such that an additional
R400 million (US$60 million) per annum could be generated on a
sustainable basis. This was to be achieved through a basket of
productivity initiatives; by eliminating non-contributing production and
replacing low-grade surface material with higher margin underground
material - all aimed at improved quality volumes. Operational
Excellence, a change programme, was initiated in April 2005 to create
the required skills, behaviour and environment to improve efficiencies.
The objective of these initiatives is to increase mining volumes whilst
maintaining yields as close as possible to life of mine reserve yields.
Reconciliation of achieved yields to gold reserves
Quarter ended
F2005 F2006*
Sep
2006*
Dec
2006*
Driefontein:
Life of mine head grade as per
published declarations
8.1
8.0
8.0
8.0
Life of mine head grade adjusted for
estimated metallurgical recoveries
7.8
7.8
7.8
7.8
Driefontein (underground yields
achieved)
8.3
8.1
7.5
7.5
Kloof:
Life of mine head grade as per
published declarations
10.5
10.0
10.0
10.0
Life of mine head grade adjusted for
estimated metallurgical recoveries**
10.2
9.7
9.7
9.7
Kloof (underground yields achieved)
9.1
8.7
8.7
7.8
Beatrix:
Life of mine head grade as per
published declarations
5.5
5.5
5.5
5.5
Life of mine head grade adjusted for
estimated metallurgical recoveries
5.3
5.3
5.3
5.3
Beatrix (underground yields
achieved)
5.0
5.2
4.7
5.0
South Deep
+
:
Life of mine head grade as per
published declarations
-
-
-
6.1
Life of mine head grade adjusted for
estimated metallurgical recoveries
-
-
-
5.9
South Deep (underground yields
achieved)
-
-
-
7.7
*
Based on reserve statement at 31 December 2005.
**
Kloof’s life of mine head grade as adjusted for estimated metallurgical
recoveries is higher than that currently achieved due to the high grade main
shaft pillar, mining of which only commences in the F2007 year and a poor
mine call factor achieved in the December quarter.
+
The acquisition of South Deep is effective from 1 December 2006.
Therefore, these results include activities for the month of December only
and the reserve statement as at 30 June 2006.
Project 100+
Continuing on the previous quarter’s momentum and with several fresh
initiatives, Project 100 remains a dedicated focus point for ongoing cost
optimisation at the SA Operations.
Current projects include the labour optimisation project, with its long-
term objective of improving productivity through a series of initiatives.
The Eskom demand side management project focusing on managing
hot and cold water systems is expected to realise around R12 million in
financial 2007 increasing to an estimated R30 million in financial 2008.
Further projects awaiting Eskom approval include the rollout of
successful water control, thermal ice storage, compressed air and
ventilation fan control, which will contribute to reduce electricity
consumption.
The initiative to replace diesel-operated locomotives with battery
operated locomotives sees the first replacement locomotives arriving in
the March 2007 quarter. Benefits will be realised as from financial
2008. Savings are also anticipated in financial 2008 through the
installation of equipment for the Pump Efficiency Monitoring initiative
which will highlight pump inefficiency, with the monitoring having
already commenced.
Project Beyond
Following solid cost savings delivered over the previous two financial
years continued total cost and productivity value delivery contributions
were achieved over the last two quarters. Financial 2007 year to date
did however experience extreme market driven inflationary pressures,
with a June to November 2006 PPI of 7.2 per cent. As a result Gold
Fields experienced an overall 4 per cent price inflation year to date
impact over the total basket of actual supply and services spend
(excluding power). The main industry commodity cost drivers behind
the stated year to date price inflation impact were steel, copper, fuels
and food.
Financial year 2007 year to date cumulative contracted benefits are
R35 million at the South African operations. Of this amount, R8 million
of contracted benefits were delivered during the December quarter
through a drill steel and waste optimisation pilot together with revised
engineering supply and repair contracts, and a move to in-house
GOLD FIELDS RESULTS Q2F2007
I
4
repairs for selected items as well as in-house manufacture. In addition
the explosives performance initiative which is a risk and reward
alliance arrangement with selected explosives suppliers showed a net
benefit this last quarter of around R19 million, with a cumulative annual
net benefit of around R26 million.
During the next quarter continued focus will be on explosives
performance and drill steel wastage reduction projects being rolled-out
across more shafts. Engineering cost optimisation, together with
underground services efficiencies optimisation and the South Deep
integration will also receive priority.
Global / International Supply Chain and Strategic Sourcing
Optimisation
Global integrated supply chain initiatives continued delivering total cost
benefits in financial 2007. Cross regional cyanide contract alignment
received priority focuses in the other International regions this last
quarter.
Global inflationary pressures in financial year 2007 also impacted
International operations. Price inflation across the total spend basket
(excluding power) for Australia and Ghana was between 4 and 5 per
cent which is in line with inflation. Key reasons for the price inflation in
Ghana were higher prices for diesel, cyanide, cement and tyres.
Australian upward price pressures were largely due to the combined
impact of price increases in contract labour, tyres, caustic, cyanide,
quicklime and cement.
From a contracted benefits perspective financial 2007 year to date
cumulative annualised benefits are US$6 million. The Australian
Beyond-Bullion cost optimisation project contributed the largest portion
to the additional US$3 million savings during the December quarter.
Africa region shipping rates also furthermore produced contracted
savings for Ghana operations through a competitive tender process.
For the March quarter 2007 continued priority focus will be on cross
regional synergies in areas such as earthmoving tyres, cyanide and
group logistics.
South African Operations
Driefontein
December
2006
September
2006
Gold produced
- kg
7,692
8,009
- 000’ozs
247.3
257.5
Yield - underground
- g/t
7.5
7.5
-
combined - g/t
4.6
4.7
Total cash costs
- R/kg
81,721
77,163
- US$/oz
344
338
Gold production decreased by 4 per cent from 257,500 ounces in the
September quarter to 247,300 ounces in the December quarter, which
was slightly higher than forecast. This decrease was due to the
redesign and replanning of the 4 shaft pillar extraction necessitated by
the instability experienced at the 4 shaft barrel.
Underground tonnage decreased from 964,000 tons in the September
quarter to 937,000 tons in the December quarter. Underground yield
was unchanged at 7.5 grams per ton. The reduction in underground
production is directly attributable to the lower production levels at
Driefontein 4 shaft as a consequence of the rescheduling of the
extraction from the shaft pillar. Surface tons and yield declined
marginally from 739,000 tons to 736,000 tons and from 1.1 grams per
ton to 0.9 grams per ton respectively.
Operating costs increased by 2 per cent from R650 million (US$92
million) to R661 million (US$90 million) as a result of an increase in
contractor expenditure. These contractors are being utilised for
equipping and opening-up together with additional secondary support
in haulages. As a result of the increase in costs and lower production,
total cash costs increased by 6 per cent in rand terms from R77,163
per kilogram to R81,721 per kilogram. In US dollar terms, total cash
costs increased 2 per cent from US$338 per ounce to US$344 per
ounce.
Operating profit decreased by 8 per cent from R487 million (US$69
million) in the September quarter to R450 million (US$61 million) in the
December quarter as a consequence of the lower gold production and
increase in costs, partially offset by the higher rand gold price.
Capital expenditure increased from R144 million (US$20 million) to
R177 million (US$24 million). The major portion of this expenditure
was spent on the 1, 5 and 9 shaft projects, the 4 shaft pillar extraction
and ore reserve development. The 9 shaft project is still in the
advanced design phase and shaft sinking should commence as
planned by October 2007.
Gold production for the March quarter is forecast to reduce marginally
due to the annual Christmas break. As a consequence unit costs will
increase accordingly.
Kloof
December
2006
September
2006
Gold produced
- kg
7,172
7,549
- 000’ozs
230.6
242.7
Yield - underground
- g/t
7.8
8.7
-
combined - g/t
7.3
7.6
Total cash costs
- R/kg
84,021
78,077
- US$/oz
354
342
Gold production at Kloof decreased by 5 per cent, from 242,700
ounces in the September quarter to 230,600 ounces in the December
quarter. The reason for the decrease in gold production was lower
yields associated with a lower mine call factor. Total underground tons
milled increased from 852,000 to 893,000 tons. Surface tons reduced
by 34 per cent from 140,000 to 93,000 tons, displaced by the increase
in underground tons.
Operating costs at R629 million (US$85 million) for the quarter
increased by 2 per cent compared with the previous quarter’s cost of
R616 million (US$87 million). This was mainly due to a 2 per cent
increase in area mined albeit at lower grades and the increase in
underground tonnage produced. As a result of the lower gold
production and increase in costs, total cash costs increased by 8 per
cent to R84,021 per kilogram, compared with R78,077 per kilogram in
the September quarter. In US dollar terms total cash costs increased
by 4 per cent to US$354 per ounce compared with the September
quarter’s US$342 per ounce. Operating profit was lower at R407
million (US$55 million) compared with R455 million (US$64 million) for
the September quarter.
Capital expenditure increased from R184 million (US$26 million) to
R191 million (US$26 million) due to an increase in ore reserve
development. The KEA project is being advanced on schedule.
Gold production and costs for the March quarter are forecast to be
similar to the December quarter with potentially higher gold production
offset by the impact of the Christmas break.
Beatrix
December
2006
September
2006
Gold produced
- kg
4,650
4,636
- 000’ozs
149.5
149.1
Yield - underground
- g/t
5.0
4.7
Total cash costs
- R/kg
80,237
77,330
- US$/oz
338
339
Gold production at Beatrix was stable at 149,500 ounces in the
December quarter compared with the 149,100 ounces produced in the
September quarter. Tonnage milled reduced to 935,000 tons in the
December quarter from 984,000 tons in the previous quarter. This was
due to lower volumes mined due to infrastructure and logistical issues
at the West section. This was offset by an increase in yield from 4.7
5
I
GOLD FIELDS RESULTS Q2F2007
grams per ton in the September quarter to 5.0 grams per ton in the
December quarter as quality volumes improved.
Operating costs quarter on quarter increased by 3 per cent from R379
million (US$53 million) to R392 million (US$53 million). This was
mainly due to additional equipping, haulage maintenance, increased
material prices and additional overtime worked to minimise the impact
of the Christmas break. Total cash costs increased from R77,330 per
kilogram (US$339 per ounce) in the September quarter to R80,237 per
kilogram (US$338 per ounce) in the December quarter. Beatrix posted
an operating profit of R275 million (US$37 million) for the quarter
compared with R284 million (US$40 million) in the September quarter.
Capital expenditure increased by R51 million (US$6 million) from R105
million (US$15 million) in the September quarter to R156 million
(US$21 million) in the December quarter. This was mainly due to an
increase in capital development, predominantly at the North and West
sections.
Gold production is forecast to be marginally lower in the March quarter
due to the impact of the Christmas/New Year break.
South Deep
December
2006
September
2006
Gold produced
- kg
838
n/a
- 000’ozs
26,900
n/a
Gold sold
- kg
682
n/a
- 000’ozs
21,900
n/a
Yield - underground
- g/t
7.7
n/a
-
combined - g/t
4.6
n/a
Total cash costs
- R/kg
133,724
n/a
- US$/oz
564
n/a
Gold production since acquisition on 1 December 2006 amounted to
26,900 ounces at a cash cost of R133,724 per kilogram and US$564
per ounce.
The fire which broke out on 31 August 2006 has been fully
extinguished. Rehabilitation work and equipping of the affected areas
is ongoing and mining has already commenced in certain of the
affected areas. In addition, new areas have been opened up for
mining which will contribute to achieving the targeted levels of
production.
South Deep will see production back at 150,000 tons per month by the
end of the March quarter, the same level as April 2006 before the Twin
Shaft accident. The shaft repairs have been completed and signed-off.
The last two weeks in January have concentrated on on-the-job
refresher training of the shaft operating personnel and cautiously
drawing down the ore passes, which have remained full since before
the accident; this process is going well. The team is to be
congratulated for their dedicated efforts over the 9 month period, safely
completing the work and meeting the targets of the physical repair
programme.
Production will continue to ramp up and by the December 2007 quarter
current infrastructure will support steady state production of 200,000 to
220,000 tons per month. The backfill plant upgrades completed last
year will ensure increased backfill volumes are matched to the higher
production rates. The below 95 level capital development is currently
out on tender where the successful contractor is expected to mobilize
during March, with initial development concentrating on 100 level
followed by 105, 110 and 110A levels forecast to be completed by
calendar year end. This capital development, one of several major
capital projects, is critical to achieve the previous JV’s approved
Feasibility Study of increased production to 330,000 tons per month in
a 6-7 year timeline, with the increased infrastructure and required
capital spend of approximately R3.5 billion. The current 94 level
refrigeration project is on target for February 2008, with current work
concentrating on the re-support of the excavations and the installation
of the brattice wall in the Ventilation shaft. This is followed by
deepening of the Ventilation shaft by 300 metres to 10 metres below
the Main shaft and 3,005 metres below the surface collar. The rock
winder will be ordered by year end for commissioning in 2010. During
this period it is planned to upgrade the metallurgical facility to 330,000
tons per month throughput with the addition of the second ball mill and
the construction of a tailings dam facility.
The year ahead will see a dynamic and exciting time in the mine
development with the following specifics, to name a few, the
commencement of long hole stoping with backfill, the down dip
development in the 95 1W and 3W projects, the commencement of the
mechanized de-stress trial mining method, backfill design work for
paste fill to augment the present backfill facilities and exploration
drilling, both underground and from surface.
Capital expenditure for the month of December amounted to R41
million.
Gold production for the March quarter is forecast at 80,000 ounces.
The higher volumes will result in an associated decrease in cash costs.
International Operations
Ghana
Tarkwa
December
2006
September
2006
Gold produced
- 000’ozs
178.8
173.6
Yield - Heap leach
- g/t
0.8
0.8
-
CIL
plant - g/t
1.6
1.5
-
Combined - g/t
1.0
1.0
Total cash costs
- US$/oz
323
344
For the quarter Tarkwa processed 5.59 million tons and produced
178,800 ounces of gold at an average yield of 1.0 gram per ton. This
compares to 5.51 million tons processed, producing 173,600 ounces in
the September quarter also at a yield of 1.0 gram per ton. The yield
from the CIL plant increased from 1.5 to 1.6 grams per ton in the
December quarter, whilst heap leach yield decreased slightly from 0.82
to 0.81 grams per ton. Both heap leach and CIL tonnages treated
increased in the December quarter.
Total tons mined, including capital stripping, increased from 24.4
million tons in the previous quarter to 26.0 million tons for the current
quarter. Ore tons moved for the December quarter at 5.23 million tons
compares with 5.20 million tons in the September quarter. The mined
grade of 1.20 grams per ton in December compares with a mined
grade of 1.33 grams per ton in the September quarter. The overall
strip ratio for the quarter was 3.96 compared with 3.68 in the
September quarter.
Total feed to the heap leach sections was 4.24 million tons at a head
grade of 1.13 grams per ton, compared with 4.20 million tons at a head
grade of 1.12 grams per ton for the September quarter. Overall, the
heap leach sections produced 110,500 ounces for the quarter
compared with the 110,100 ounces achieved in September quarter.
There was a net gold-in-process increase of 6,900 ounces.
The total feed to the CIL plant was higher than the previous quarter at
a record 1.35 million tons, compared with the previous quarter’s 1.32
million tons. Head grade also increased from 1.52 grams per ton to
1.68 grams per ton. The CIL plant produced 68,300 ounces in the
December quarter, compared with 63,500 ounces in the previous
quarter.
Operating costs, including gold-in-process (GIP) movements, at US$58
million (R425 million) were US$2 million lower than the previous
quarter and reflect an increase in GIP partially offset by an increase in
the cost of on-site power generation (in line with national load shedding
requirements), an increase in earthmoving machine maintenance and
repair costs, the increase in tonnage treated and an increase in labour
costs.
Operating cost per ton processed was US$11.02 as against US$10.95
in the September quarter. Total cash costs at US$323 per ounce
decreased 6 per cent compared with the September quarter’s US$344
per ounce. This decrease in cash costs was caused primarily by the
impact of savings brought about in the mining operation through
GOLD FIELDS RESULTS Q2F2007
I
6
increased load and haul efficiencies and by the 3 per cent increase in
gold output. Operating profit at US$52 million (R381 million) increased
from US$49 million (R344 million) when compared with the September
quarter.
The Tarkwa CIL Expansion and North Heap Leach Extension projects
were approved during the quarter. The estimated costs of these
projects are US$126 million and US$49 million respectively. The CIL
Expansion project will increase plant throughput from current levels to
1 million tons per month, whilst the North Heap Leach Extension
project is a planned extension of the existing heaps to cater for
ongoing stacking requirements.
Capital expenditure for the quarter amounted to US$26 million (R189
million) compared with US$13 million (R90 million) in the September
quarter. The main areas of capital expenditure were the purchase of
secondary mining fleet, capital waste mining (Teberebie cutback),
expenditure on the initial work carried out on the CIL expansion project
and progress on other minor projects. A US$4 million joint venture tyre
re-tread facility was approved for construction during the quarter. This
project is being advanced to mitigate the global tyre shortage.
Gold production for the March quarter is expected to be similar to the
current quarter and still in line with an annualised throughput of around
700,000 ounces. Unit costs are expected to remain under pressure on
the back of the continued cost of on-mine power generation.
Damang
December
2006
September
2006
Gold produced
- 000’ozs
51.6
48.5
Yield
- g/t
1.2
1.1
Total cash costs
- US$/oz
447
438
Gold production increased 6 per cent from 48,500 ounces during the
September quarter to 51,600 ounces in the December quarter. This
improvement resulted from an increase in the higher-grade fresh ore
tonnages mined and processed from the Damang pit cutback and Juno
2 South West (J2SW) pits, which in turn reduced the volume of lower
grade B3 stockpile material that was fed to the plant. The mill
throughput for the quarter at 1.33 million tons was marginally higher
than the 1.32 million tons processed in the September quarter.
Total tons mined increased from 5.1 million tons in the previous quarter
to 5.4 million tons in the current quarter. Ore mined for the quarter at
856,000 tons was 5 per cent higher than the previous quarter’s
818,000 tons. This was as a result of the higher fresh ore tonnages
mined from the Damang pit cutback and J2SW pits. Additional oxide
ore tonnages were mined from Tomento pits to meet mill-blending
requirements. The strip ratio of 5.3 was similar to the September
quarter. The Tomento pits will remain the main source of oxide feed to
the plant, while increasing volumes of fresh ore will be mined from the
Damang pit cutback and J2SW pits.
Operating costs, including gold-in-process (GIP) movements,
increased from US$21 million (R150 million) to US$23 million (R169
million). The higher tonnages mined from the pits and the on-site
power generation (in line with national load shedding requirements)
were the main contributors to the higher costs. These factors
increased the cost per ton milled from US$15.23 to US$16.98. Total
cash costs increased from US$438 per ounce to US$447 per ounce,
also reflecting the higher operating costs. Operating profit for the
quarter at US$9 million (R64 million) was similar to the September
quarter.
Capital expenditure for the quarter was similar to the September
quarter at US$7 million (R53 million) with the majority of this
expenditure incurred in mining the Damang pit cutback and the raising
of tailings storage facility embankments. The total volume mined from
the Damang pit cutback to date is 5.58 million bank cubic metres
(BCM), which is 9 per cent more than the progressive project plan.
The project remains on plan at US$44 million. A capital project to
construct a seventh leach tank commenced during the quarter. This
project is expected to deliver higher recoveries through increased
residence time.
Gold production is expected to increase slightly in the March quarter as
a greater proportion of lower grade B3 fresh stockpiled ore is replaced
by high-grade fresh ore mined from the Damang pit cutback and J2SW
pits. Cost pressure will continue as a result of the continued cost of on-
mine power generation.
Venezuela
Choco 10
December
2006
September
2006
Gold sold
- 000’ozs
22.8
17.2
Gold produced
- 000’ozs
22.8
16.2
Yield
- g/t
2.0
1.7
Total cash costs
- US$/oz
426
458
Gold production for the quarter increased 41 per cent from 16,200
ounces to 22,800 ounces.
Mining continued in the Pisolita, Coacia and the Rosika open pits.
Mined quantities were slightly lower than plan mainly as a result of
lower than expected machinery availability and a strike which lasted for
a week during December. Also, during November the SAG mill motor
was damaged due to the ingress of water causing a loss of 4 days’
production. An additional 4 days were lost due to the scheduled
relining of the ball mill. Added to this is a water shortage which
negatively affected production towards the end of the quarter and will
continue into 2007. This will severely affect production for the
remainder of financial 2007. The grade mined was similar to last
quarter at 1.90 grams per ton. Lower grade material was stockpiled
separately, allowing a processed head grade of 2.23 grams per ton
compared with 1.98 grams per ton in the September quarter.
Total mill throughput for the quarter increased from 306,000 tons to
357,000 tons.
Operating costs, including gold-in-process movements, amounted to
US$11 million (R78 million) compared with US$9 million (R66 million)
last quarter, in line with the increase in production. Total cash costs
decreased from US$458 per ounce to US$426 per ounce driven by the
increased level of production. Operating profit was US$3 million (R23
million) compared with US$1 million (R8 million) in the September
quarter.
Water levels in the reservoir supplying the mine remain low, as a
consequence of lower than normal seasonal rainfall. A water
exploration programme was expedited to alleviate this shortfall. As
water is encountered in the water exploration holes these are being
equipped as temporary production wells for conversion into permanent
wells during the second quarter of 2007. The permit to extract water
from the Yuruari River has not yet been granted and construction of the
pipeline cannot commence without this permit.
Capital expenditure amounted to US$5 million (R38 million) for the
quarter compared with US$11 million (R77 million) in the September
quarter. The resource definition exploration programme on Choco 10
continued to return numerous significant intersects during the quarter,
defining high-grade extensions to mineralisation along strike and down-
dip at the VBK deposit. A total of 8,413m of diamond drilling and 4,271
metres of RC drilling were completed during the quarter. High-grade
mineralisation has now been defined over 800 metres strike. The site
is currently in the process of updating the resources and reserves to
reflect the aggressive 2006 exploration programme.
Gold production for the March quarter is expected to be below 9,000
ounces due to the lack of water to support the milling process and due
to lower grades as more ore is mined from the low grade Coacia open
pit. Renegotiation of the mine’s Collective Bargaining Agreement will
commence during the March quarter.
7
I
GOLD FIELDS RESULTS Q2F2007
Australia
St Ives
December
2006
September
2006
Gold produced
- 000’ozs
124.6
123.4
Yield - Heap leach
- g/t
0.5
0.4
-
Milling
- g/t
3.1
3.0
-
Combined - g/t
2.2
2.3
Total cash costs
- A$/oz
493
564
- US$/oz
378
429
Gold production for the quarter was 124,600 ounces, 1 per cent up on
the last quarter’s 123,400 ounces. This increase was due to an
increase in head grade from 3.24 grams per ton to 3.34 grams per ton
at the Lefroy mill at similar volumes. Gold production from the Lefroy
mill was 117,000 ounces compared with 116,200 ounces in the
September quarter. The heap leach produced 7,600 ounces compared
with 7,200 ounces, the increase resulting from on-going recovery of
gold from slow leaching Mars ore stacked during the previous quarter.
Total open pit volumes decreased as did strip ratios as the Thunderer
open pit commenced ore production. During the quarter 2.4 million
bank cubic metres (BCM’s) of ore and waste were mined compared
with 3.2 million BCM’s in the previous quarter. The average strip ratio
decreased to 4.7 compared with 6.3 previously. Open pit operations
produced 1.0 million tons of ore for the quarter compared with 1.2
million tons the previous quarter. Open pit ore grade remained
constant at 2.3 grams per ton. The majority of ore was mined from the
Thunderer and Delta North pits.
Underground operations produced 341,100 tons of ore at 5.2 grams
per ton for the quarter compared with 381,500 tons at 4.8 grams per
ton the previous quarter mainly due to labour and equipment
availability. At the Leviathan complex the majority of production came
from the Conqueror zone, with total tonnage from the complex down
but grade increased by 0.6 grams per ton resulting in a similar
contribution. Argo also produced lower tonnage at an increased grade
for slightly less contained ounces compared with the previous quarter.
Operating costs, including gold-in-process movements, decreased to
A$62 million (R348 million) from A$69 million (R372 million), reflecting
the decrease in volumes mined and a decrease in the waste charge-
back following completion of mining in the Mars and Agamemnon open
pits early in the quarter. A price participation royalty calculated at 10
per cent of the average quarterly gold price above A$600 per ounce
was payable during the quarter and amounted to A$3 million (R14
million) similar to the previous quarter. Total cash costs decreased
from A$564 per ounce (US$429 per ounce) in the previous quarter to
A$493 per ounce (US$378 per ounce) for the December quarter.
Operating profit at A$37 million (R213 million) was up on the previous
quarter’s A$32 million (R172 million).
Capital expenditure for the December quarter amounted to A$22
million (R126 million), which was similar to the September quarter.
Mine development capital increased marginally to A$14 million (R81
million), with reduced pre-strip costs at Thunderer offset by
commencement of development at the Bahama pit. Argo underground
development and expansion of the number 3 heap leach pad were also
significant contributors. Capitalised exploration expenditure was A$6
million (R34 million) for the quarter, compared with A$8 million (R41
million) in the preceding quarter, with an increased focus on resource
infill drilling. The Leviathan project is being advanced on plan and
should be presented to the Board before financial year end. This large
pit will access around 650,000 ounces of gold.
Gold production for the March quarter is expected to increase slightly
with a corresponding reduction in unit costs. This will be achieved
through increased tonnages processed.
Agnew
December
2006
September
2006
Gold produced
- 000’ozs
53.0
59.2
Yield
- g/t
5.2
5.4
Total cash costs
- A$/oz
338
276
- US$/oz
260
209
Gold production for the quarter was 53,000 ounces, 10 per cent down
on the previous quarter’s 59,200 ounces. This was due to a decrease
in mill throughput from 344,000 tons to 318,000 tons combined with
lower yields for the quarter at 5.2 grams per ton compared with 5.4
grams per ton during the previous quarter. This was mainly on the
back of lower tonnage from the high grade Kim lode, which was
affected by restricted access due to ground conditions, and the paste
fill plant which has not yet been commissioned. This affected fill
placement. Added to this were reduced tonnage and grade from Main
Lode and marginally lower grade from Songvang, together with plant
throughput restrictions due to ore blend.
Open pit mining at Songvang produced 344,000 tons of ore for the
quarter, significantly up on the 213,300 tons produced during the
preceding quarter. The total volume of ore and waste mined from the
pit was 1.2 million bank cubic metres (BCM’s) versus 1.3 million BCM
during the previous quarter. The average strip ratio decreased to 9.1
from 17.0 during the preceding quarter. The average grade fell to 1.92
grams per ton compared with 1.96 grams per ton last quarter.
The underground operations at Waroonga produced 100,300 tons of
ore at 13.1 grams per ton during the quarter, compared with 118,600
tons at 13.2 grams per ton in the preceding quarter.
Operating costs, including gold-in-process movements, were A$16
million (R92 million) for the December quarter similar to the September
quarter. An increase in costs of A$2 million due to the completion of
the capitalised waste pre-strip at Songvang and the resultant
expensing of internal waste as from November 2006 was offset by a
reduction in costs due to the lower production. Total cash costs
increased to A$338 per ounce (US$260 per ounce) for the quarter
compared with A$276 per ounce (US$209 per ounce) in the preceding
quarter. Operating profit decreased to A$27 million (R151 million)
compared with A$32 million (R173 million) quarter on quarter.
Capital expenditure for the December quarter was A$10 million (R56
million) compared with A$11 million (R57 million) in the September
quarter. Songvang pre-strip was a major contributor to this
expenditure (A$4 million), together with ongoing development of the
Waroonga complex underground mine (Kim and Main Lodes - A$3
million). Capitalised exploration expenditure was A$2 million (R10
million) compared with A$3 million (R14 million) the previous quarter.
Gold produced during the March quarter is expected to exceed 60,000
ounces due to increased tonnage and grades from Songvang when
compared with the December quarter, whilst cash costs are expected
to fall in line with the increased production. Capital expenditure is
expected to increase with the commencement of the extension to the
Leinster village.
Quarter ended 31 December 2006 compared
with quarter ended 31 December 2005
Attributable gold production decreased 2 per cent from 1,040,000
ounces for the quarter ended 31 December 2005 to 1,015,000 ounces
produced in the quarter ended 31 December 2006. This decrease was
mainly due to the decrease in production at the South African
operations, partially offset by the newly acquired acquisitions at Choco
10 and South Deep. Production at the remaining international
operations was similar quarter on quarter.
The South African operations produced 652,000 ounces compared
with the 698,000 ounces produced in the December 2005 quarter. The
decrease at Driefontein, Kloof and Beatrix amounted to 42,800, 22,000
and 5,400 ounces respectively.
GOLD FIELDS RESULTS Q2F2007
I
8
Revenue increased by 40 per cent in rand terms (increased 23 per
cent in US dollar terms) from R3,479 million (US$534 million) to
R4,854 million (US$658 million). The higher gold price of R144,485
per kilogram (US$609 per ounce) compared with R101,184 per
kilogram (US$482 per ounce), contributed significantly to this increase.
Operating costs, increased from R2,349 million (US$360 million) to
R2,975 million (US$403 million), an increase of 27 per cent. The
weaker rand when translating costs at the international operations into
South African rand accounted for over R100 million of this increase.
Exchange rates weakened from an average of US$1 = R6.53 to US$1
= R7.38, or 13 per cent and from A$1 = R4.88 to A$1 = R5.66, or 16
per cent quarter on quarter. Total cash costs for the Group in rand
terms, increased 19 per cent from R66,054 per kilogram (US$315 per
ounce) to R83,707 per kilogram (US$353 per ounce).
At the South African operations operating costs excluding South Deep
increased by 9 per cent to R1,682 million for the year compared with
R1,539 million the previous year. This was due to above inflation wage
increases, an increase in equipping and secondary support, an
increase in commodity prices, particularly steel, copper, fuel and food,
as well as normal inflationary pressures. Costs at South Deep
amounted to R113 million (US$16 million) for December 2006. Unit
cash costs including South Deep increased from R67,977 to R83,952
per kilogram. Total cash costs excluding South Deep were R82,213
per kilogram for the quarter. At the international operations unit cash
costs increased by 17 per cent from US$299 per ounce to US$351 per
ounce mainly due to the combined effect of higher stripping ratios and
lower grades, added to the increased cost of inputs driven by the
commodities boom and increased fleet maintenance costs at Tarkwa.
Operating profit at R1,969 million (US$267 million), compared with
R1,150 million (US$176 million) in the previous year, with the group
benefiting from the higher gold price in all currencies.
Net earnings were R767 million (US$104 million) compared with R284
million (US$44 million) in the December 2005 quarter. The increase in
earnings was largely due to the increase in operating profit.
Earnings excluding gains and losses on financial instruments and
foreign debt and exceptional items amounted to R564 million (US$76
million) this quarter compared with R297 million (US$46 million) in the
December 2005 quarter.
C a p i t a l a n d d e v e l o p m e n t
p r o j e c t s
Cerro Corona
The politically motivated and illegal road blockade as reported last
quarter was peacefully withdrawn on 27 October. Local public support
for this action was never strong, indeed few supported the action. It
was this lack of support coupled with continuous dialog and the support
of Peruvian ministry officials which brought this event to a close. In
spite of the blockade, community relationships around this project
remained quite positive and perhaps are now even stronger than
before. The company continues to work closely with the several
communities located near the Cerro Corona project site, fulfilling the
commitments made for cooperative community enhancement projects.
The focus of these projects remains on sustainable development
efforts as well as projects with a particular focus on education and
health.
More than three full weeks of construction activity were lost because of
this blockade. However, by late November most activities had
resumed, though at a reduced rate. During this period, contract
formats were also changed to address and reinforce other
requirements with respect to using local contractors. Work reallocation
among more than fifty local contractors was accomplished.
Once work was resumed on 15 November, the mining operations
quickly ramped up to pre-stoppage levels and by the end of the quarter
mining rates were at the level required for full scale operations of 1
million tons per month.
A majority of on site construction activities involved topsoil stripping
from the tailing management facility embankment foot print and mass
earthworks for the plant site platform which reached 98 per cent
complete by the end of the period. Run of mine pad earthworks and
haul road construction advanced, however at a slower than planned
pace due to the lack of suitable mined overburden for construction.
The plant civil, structural, mechanical and piping contractor
commenced mobilization in November and will commence concrete
works in early January following completion and turnover of the plant
site platforms. There are currently in excess of 500 workers engaged
onsite of which some 170 are employed directly by the company.
Completion of outstanding engineering activities by the engineering
contractor continued, but at a slower than planned advance rate.
Current estimates are that this effort will now be completed by mid-
February 2007. Final design packages for tailing and mine overburden
storage facilities have been received, comments and observations are
being addressed in final design revisions. Procurement is similarly
advanced and delivery of all major equipment is not on the Project
critical path.
Schedule recovery planning is in progress, with the contractor to
maintain a plant commissioning and production schedule for late
December 2007, however with recent delays related to community-
driven issues, this is at risk in slipping into early first quarter of calendar
2008.
Project commitments through the end of the quarter were US$172
million versus US$240 million planned. The commitment under-runs
are primarily due to delays in committing the tailings embankment,
electrical and instrumentation and auxiliary buildings packages.
Current forecast at completion remains at about US$340 million.
Arctic Platinum
North American Palladium Finland OY (“NAPF”) and Gold Fields
Exploration technical staff continue to review drilling results and
processing options during the quarter. The third party engineering firm
retained by NAPF for development of a Feasibility level study will
complete their work in the third quarter of FINANCIAL 20077. Both
NAPF and Gold Fields will review the findings and agree future
activities at that time.
E x p l o r a t i o n a n d c o r p o r a t e
d e v e l o p m e n t
Gold Fields completed drilling on six projects during the quarter on its
greenfield exploration sites. At the Essakane project in Burkina Faso
(GFI earning 60 per cent), significant progress was made towards
completing the reassay programme and finalising a new resource
estimation as at year end. Results are presently under review and we
are poised to commence the Bankable Feasibility Study once final
agreement is reached with our partners Orezone Resources Inc (TSX:
“OZN”) on the commercial and operating agreements for the project.
On the Sankarani project (GFI earning 65 per cent) in south-western
Mali, presently operated by partner Glencar Mining plc (AIM: “GEX”),
additional RC drilling was completed on the Kabaya South target
during the quarter. At the 80 per cent owned Kisenge project in the
southern DRC partial results for the previously completed aircore and
diamond drilling programme were received during the quarter. These
results support the concept that a significant resource could be present
on the Kisenge project and that it has direct geologic analogues to the
Tarkwa project in Ghana. We are planning a significant drilling
programme after the rainy season upon approval of budgets and
availability of a suitable contractor for the project.
At the Central Victoria project in Australia, aircore drilling continued to
define the newly discovered parallel trend located to the east of
Lockington trend. Follow-up diamond drilling commenced in December
and results are pending. Initial aircore and RC drilling was completed
on two targets within our New South Wales generative programme
being completed with a subsidiary company owned by GeoInformatics
Exploration Inc (TSX Venture: “GXL”).
In China, Gold Fields reached an agreement with Sino Gold Limited
(ASX: “SGX”) to form a new strategic alliance for future exploration in
China. Gold Fields currently owns 17.4 per cent of SGX. The alliance
calls for the transfer of all the Gold Fields exploration properties in
China as well as its operating staff into a new 50:50 owned and funded
exploration vehicle focused on greater than 5 million ounce projects.
Gold Fields will benefit from the operating experience of SGX in China
9
I
GOLD FIELDS RESULTS Q2F2007
and SGX will benefit from Gold Fields technical and operational
abilities.
In the El Callao District in Venezuela, regional exploration continued
surrounding Gold Fields 95 per cent owned Choco 10 mine and
fieldwork continued on the recently acquired Choco 6 concession. An
extensive resource drilling programme is in progress at Choco 10 that
will lead to the issuance of Gold Fields’ first resource and reserve
statement on that property.
Diamond drilling continued on the Tres Palmas project in the
Dominican Republic with partner GoldQuest Mining Corp (TSX
Venture: “GQC”). Approximately 1,300 meters was completed of a
proposed 2,000 meter programme before the Christmas break
curtailed activities.
C o r p o r a t e
Acquisition of South Deep
On 11 September 2006, Gold Fields Limited announced three separate
transactions, collectively worth approximately US$2.5 billion, which
would significantly increase Gold Fields’ interest in the South Deep
Gold Mine in South Africa. South Deep is one of the most important
developing gold mines in the world, with reserves of 29.3 million
ounces contained in a resource of 67 million ounces.
The salient features and status of the three separate transactions is as
follows:
- Gold Fields and Barrick Gold Corporation (Barrick) reached
agreement for Gold Fields to acquire the 50 per cent stake owned by
Barrick in the developing South Deep gold mine for a total
consideration of US$1.525 billion. On 1 December 2006, Gold
Fields announced that it had successfully completed the acquisition
of Barrick’s 50 per cent stake in South Deep;
- Gold Fields and JCI Limited (JCI) reached agreement for Gold
Fields to acquire 27 million Western Areas shares from JCI, which
would increase Gold Fields’ stake in Western Areas to 34.7 percent.
The parties further agreed to a reciprocal call and put option that
could see Gold Fields increase its stake in Western Areas to 41 per
cent. On 1 December 2006, Gold Fields announced that it had
acquired the 27 million WAL shares from JCI and also exercised the
call option in respect of a further 9.96 million WAL shares; and
- Gold Fields undertook to make a general offer to Western Areas
Limited (Western Areas) shareholders to acquire all of the
outstanding shares in Western Areas which Gold Fields did not yet
own. Western Areas’ largest asset is its 50 per cent interest in
South Deep. On 30 October 2006, Gold Fields made a general offer
to all Western Areas shareholders. As at 18 January 2007, Gold
Fields either owned or had received irrevocable undertakings in
respect of approximately 95.6 per cent of the issued share capital of
Western Areas, allowing Gold Fields to invoke the “compulsory
squeeze out” provisions of Section 440K of the Companies Act, 61
of 1973 ("Section 440K"). Western Areas shares will be suspended
on the JSE Limited ("JSE"), with effect from the commencement of
trade one business day following the day upon which notice in terms
of Section 440K is posted to remaining Western Areas shareholders.
The listing of Western Areas shares will be terminated on the JSE,
with effect from the commencement of trade on the first Monday
following the date upon which Gold Fields becomes entitled and
bound to acquire, in terms of Section 440K of the Act, those offer
shares in respect of which the offer had not been accepted by the
closing date.
Provisional accounting in accordance with IFRS3,
Business combinations
The acquisition of South Deep has been accounted for on a provisional
basis in accordance with the provisions of IFRS 3, Business
Combinations. To give effect to the acquisition on a provisional basis,
the difference between the purchase price and the net asset value of
South Deep, without adjusting for any fair values, has been accounted
for under property, plant and equipment. In addition, no account has
been made of the tax effect on the difference, nor has any additional
amortisation arising from the difference been charged to earnings.
IFRS 3 states that where the fair values to be assigned to the assets,
liabilities or contingent liabilities or the cost of the combination can only
be determined provisionally, the business combination shall be
accounted for using those provisional values. Adjustments to these
provisional values must however be completed within twelve months
from acquisition of a controlling interest (i.e. November 2007).
Western Areas Limited gold derivative structure
By quarter end Gold Fields Limited had acquired 84 per cent of
Western Areas Limited and as such also acquired its long-dated gold
derivative structure. Details of the structure are outlined below.
In 2001 the Board of Western Areas Limited decided to enter into a
long-dated derivative structure based on the selling of options on
Western Areas’ share of South Deep’s gold production. The derivative
structure took effect in the last quarter of 2001 and expires in mid-
2014.
Current Structure
- Western Areas bought put options to provide price protection for the
operation up to June 2014.
- Western Areas sold call options equivalent to 77 per cent of the puts
bought, capping the upside gold price participation over the
remaining nine year period.
- Western Areas bought call options equivalent to 39 per cent of the
calls sold at a higher gold price, giving the Company upside gold
price participation over the remaining nine year period.
- Western Areas sold higher value call options equivalent to 31 per
cent of the puts bought, capping the upside gold price participation
over the remaining nine year period.
- The option premium for the sold options was received upfront, and
payment for the bought options was deferred until maturity of the
option, effectively spreading the payment over the duration of the
hedge.
- The net volume of gold committed to the derivative structure is
currently 7.8 per cent of Western Areas’ attributable mineral
reserves.
- The options provide the ability to close out the hedge positions in the
event of appropriate market conditions.
- There is currently no Rand hedging in this structure and the
Company is fully exposed to currency fluctuations. All the options
are United States Dollar denominated.
In December 2001, US$104 million was received for premiums on sold
options. This gave rise to the cash balance held in Escrow at the time,
which was used to fund the mining operation. Simultaneously the
options bought gave rise to an obligation to pay option premiums,
totaling US$250 million, at various predetermined dates in the future –
the Option premium payable. The Option premium payable liability is
reflected at the current settlement value of the future payments. An
adjustment is made on a periodic basis to reflect the change in the
value of the liability.
In terms of the option exposure to the gold price, for every one US
dollar increase/decrease in the gold price, the extent of the liability will
increase/decrease by US$1.1 million as at 31 December 2006. The
exposure to the gold price decreases monthly as the Company closes
out the matured options. Refer detail on page 15.
Listing on the Dubai International Financial Exchange
On 30 October 2006 Gold Fields became the first African, South
African and gold mining company to list on the Dubai International
Financial Exchange (DIFX).
Gold Fields is again leading South African companies into a new
terrain that we believe will yield many positive returns in the future.
The DIFX is the gateway to a significant pool of liquidity in the Gulf,
Middle East and Central Asian region.
The South African Minister of Minerals and Energy, Buyelwa Sonjica
expressed her approval by saying:
“Gold Fields is one of South Africa’s leading companies and also one
of our proudest exports. The listing in Dubai supports our
government’s initiatives to build solid cross-border interactions and
encourage capital inflows into our beautiful country. I therefore wish
Gold Fields well in this venture and believe that it will add value to the
economy of Dubai.”
South African Government Approves Mining Licenses
On 10 November 2006 it was announced that the South African
Department of Minerals and Energy had formally approved the
GOLD FIELDS RESULTS Q2F2007
I
10
conversion of the Driefontein, Kloof and Beatrix gold mines old-order
mining licenses into new order mining licenses.
To convert old order mining licenses into new order mining licenses,
companies must meet the requirements of the Mineral and Petroleum
Resources Development Act (MPRDA) 28 of 2002, which was enacted
in May 2004, as well as the Broad Based Socio-Economic
Empowerment Charter for the South African Mining Industry and the
associated Scorecard for the Mining Industry.
Expansion projects at Tarkwa
Two significant expansion projects at Tarkwa Gold Mine in Ghana were
approved by the Board during the last quarter.
The first relates to the expansion of the existing Carbon-in-Leach
(‘CIL’) process plant facility from a design tonnage throughput capacity
of 4.2 million tons per annum (‘Mtpa’) to 12.0Mtpa. The capital cost for
this expansion is estimated at US$126 million (R900 million).
Construction is expected to start in the first quarter of calendar 2007,
with commissioning scheduled to be completed by the second half of
calendar 2008. In addition to the main process plant, this project also
entails an expansion of the tailings storage facilities and associated
infrastructure.
The second project is an expansion of Tarkwa’s North Heap Leach
facility by adding an additional heap leach pad (Phase 5) to the North
Heap Leach complex. Phase 5 will add 39 million tons stacking
capacity to the current area and will enable continuation of stacking at
the North facility until June 2011. Budgeted capital expenditure for this
project is US$49 million (R350 million), consisting of US$35 million to
expand the leach pads, and US$14 million to build associated
infrastructure and services required for Phase 5 and subsequent
Phases 6 to 8 of the leach pad complex. Construction of the Phase 5
facility is also expected to begin in the first quarter of calendar 2007,
with commissioning scheduled to be completed by mid calendar 2008.
These expansion projects will maintain the total ore tonnage treated at
approximately 21.6Mtpa, comprising 9.6Mtpa of heap leach and
12.0Mtpa milled ore. It will enable gold production to be maintained at
a level in excess of 700,000 ounces per annum until 2021, minimise
the sub-optimal processing of ore by improving the overall recovery
and decrease the processing unit operating cost through economies of
scale.
The improved recovery from CIL will ultimately result in an additional 1
million ounces of recovered gold over the life of the mine.
Terence Goodlace to head up Gold Fields operations in South Africa
On 9 January 2007 it was announced that Mr. Terence Goodlace
would replace the late Mr. Brendan Walker as head of its South African
operations, with immediate effect. Mr. Walker was tragically killed in a
car accident on 30 December 2006. Brendan was associated with
Gold Fields his entire career. He was appointed as an executive vice
president and head of South African operations on 1 March 2006.
Mr. Goodlace was previously head of Gold Fields’ international
operations. Terence’s appointment will ensure stability and continuity
at a time when we face significant new challenges in South Africa.
Terence, who is well known to and respected by the South African
operations, has a deep insight into and understanding of the many and
complex challenges facing our operations. He has filled various
operational positions in the Group with distinction over the past 20
years and is a longstanding member of the Gold Fields Executive
Committee. Before becoming head of the international operations he
was head of strategic planning for the Group.
Gold Fields’ South African operations include the Beatrix, Driefontein
and Kloof gold mines, as well as the recently acquired South Deep
gold mine.
Mr. Peter McArdle, currently head of technical and strategic planning
for the international operations, will act as head of international
operations while a global search is conducted to fill the position on a
permanent basis.
D i v i d e n d
In line with the Company’s policy of paying out 50 per cent of its
earnings, subject to investment opportunities, an interim dividend has
been declared payable to shareholders as follows:
- Interim dividend number 66:
90 SA cents per share
- Last date to trade cum-dividend:
Friday, 9 February 2007
- Sterling & US dollar conversion date:
Monday, 12 February 2007
- Trading commences ex-dividend:
Monday, 12 February 2007
- Record date:
Friday, 16 February 2007
- Payment date:
Monday, 19 February 2007
Share certificates may not be dematerialised or rematerialised between
Monday, 12 February 2007 and Friday, 16 February 2007, both dates
inclusive.
C h a n g e i n a c c o u n t i n g p o l i c y
Capitalisation of costs relating to Ore Reserve
Development (ORD)
On 1 July 2006, the Group changed its accounting policy on Ore
Reserve Development (“ORD”) costs. These costs are now capitalised
and amortised over the period the Group expects to consume the
economic benefits relating to ORD. Previously, ORD costs were
expensed. The change in accounting policy has been applied
retrospectively for the earliest comparative period presented in terms of
IAS8 Accounting policies, changes in accounting estimates and errors.
ORD is all off-reef development that allows access to reserves that are
economically recoverable in the future. ORD includes, but is not
limited to, crosscuts, footwalls, return airways and box holes. The cost
of developing access ways and other infrastructure creates for the
Group probable economic benefits that, in combination with other
assets at its mining operations, contribute directly to the future cash
inflows of the Group. The change in accounting policy will therefore
allow for improved financial reporting and will align the Group’s policy
with those of its global industry peers.
The effect of the change in accounting policy for the last 3 years is an
after tax credit to earnings of:
F2006 - R81.5 million
F2005 - R100.7 million
F2004 - R363.9 million
The impact of the change in accounting policy for the December 2006
quarter is a credit to earnings of R40.0 million. The credit to earnings
in the September 2006 quarter amounted to R49.7 million. For the
December 2005 quarter the impact was a credit to earnings of R22.3
million.
The corresponding entry for the above adjustments was to increase
property, plant and equipment and deferred tax liabilities.
O u t l o o k
Gold production for the December quarter should be between 2 and 4
per cent higher due to an increase at the Australian operations,
especially Agnew, and additional gold from South Deep’s first full
quarter. This will be partially offset by the reduction at Choco 10.
Cash costs in rand terms should be similar quarter on quarter.
B a s i s o f a c c o u n t i n g
The unaudited results for the quarter and six months have been
prepared on the International Financial Reporting Standards (IFRS)
basis. The detailed financial, operational and development results for
the December 2006 quarter are submitted in this report.
These consolidated quarterly statements are prepared in accordance
with IAS 34, Interim Financial Reporting. The accounting policies used
in the preparation of this report are consistent with those applied in the
previous financial year other than the change in accounting policy
referred to.
I.D. Cockerill
Chief Executive Officer
25 January 2007
11
I
GOLD FIELDS RESULTS Q2F2007
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand
Quarter
Six months to
December
2006
September
2006
Restated
December
2005
December
2006
Restated
December
2005
Revenue
4,854.4
4,731.9 3,478.8 9,586.3
6,501.3
Operating costs
2,974.7
2,763.6 2,349.0 5,738.3
4,623.0
Gold inventory change
(89.7)
(18.3) (20.6) (108.0)
(9.7)
Operating profit
1,969.4
1,986.6 1,150.4 3,956.0
1,888.0
Amortisation and depreciation
745.1
680.7 535.1
1,425.8
1,033.9
Net operating profit
1,224.3
1,305.9 615.3
2,530.2
854.1
Finance
income
237.0
13.8 17.8 250.8
17.7
- Net interest (paid)/received
(26.6)
16.7 16.8 (9.9)
17.6
- Gain/(loss) on foreign debt, net of cash
263.6
(2.9) 1.0
260.7
0.1
Loss on financial instruments
(19.2)
(9.4) (18.8) (28.6)
(27.6)
Other expenses
(63.9)
(28.7) (29.0) (92.6)
(47.8)
Exploration
(64.9)
(65.6) (54.1) (130.5)
(120.3)
Profit before tax and exceptional items
1,313.3
1,216.0 531.2
2,529.3
676.1
Exceptional gain
7.8
8.7 1.8 16.5
4.5
Profit before taxation
1,321.1
1,224.7 533.0
2,545.8
680.6
Mining and income taxation
480.2
464.2 211.2 944.4
269.0
- Normal taxation
259.4
251.7 121.2 511.1
195.2
- Deferred taxation
220.8
212.5 90.0 433.3
73.8
Net profit
840.9
760.5 321.8
1,601.4
411.6
Attributable to:
- Ordinary shareholders
766.8
697.8 284.2
1,464.6
348.5
- Minority shareholders
74.1
62.7 37.6 136.8
63.1
Exceptional items:
Profit on sale of investments
4.7
0.4 -
5.1
1.8
Profit on sale of assets
2.8
8.3 -
11.1
-
Other
0.3
- 1.8 0.3
2.7
Total exceptional items
7.8
8.7 1.8 16.5
4.5
Taxation
(2.7)
(3.1) (0.6) (5.8)
(1.2)
Net exceptional items after tax and minorities
5.1
5.6 1.2 10.7
3.3
Net earnings
766.8
697.8 284.2
1,464.6
348.5
Net earnings per share (cents)
148
141 58 289
71
Headline earnings
761.7
692.2 283.0
1,453.9
345.2
Headline earnings per share (cents)
147
140 57 287
70
Diluted earnings per share (cents)
147
141 57 288
70
Net earnings excluding gains and losses on financial instruments
and foreign debt, net of cash and exceptional items
563.6
701.7 296.9
1,265.3
365.7
Net earnings per share excluding gains and losses on financial
instruments and foreign debt, net of cash and exceptional items
(cents)
108
142 60 250
74
Gold sold – managed
kg
33,598
33,315 34,381 66,913
67,353
Gold price received
R/kg
144,485
142,035 101,184 143,265
96,526
Total cash costs
R/kg
83,707
79,862 66,054 81,793
66,619
GOLD FIELDS RESULTS Q2F2007
I
12
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
United States Dollars
Quarter
Six months to
December
2006
September
2006
Restated
December
2005
December
2006
Restated
December
2005
Revenue
657.6
666.5 533.5
1,324.1
997.1
Operating costs
403.4
389.2 360.3 792.6
709.0
Gold inventory change
(12.3)
(2.6) (3.2) (14.9)
(1.5)
Operating profit
266.5
279.9 176.4 546.4
289.6
Amortisation and depreciation
101.0
95.9 82.0 196.9
158.6
Net operating profit
165.5
184.0 94.4 349.5
131.0
Finance income
32.6
2.0 2.7 34.6
2.7
- Net interest (paid)/received
(3.8)
2.4 2.6
(1.4)
2.7
- Gain/(loss) on foreign debt, net of cash
36.4
(0.4) 0.1 36.0
-
Loss on financial instruments
(2.7)
(1.3) (2.9) (4.0)
(4.2)
Other expenses
(8.7)
(4.1) (4.4) (12.8)
(7.3)
Exploration
(8.7)
(9.3) (8.3) (18.0)
(18.5)
Profit before tax and exceptional items
178.0
171.3 81.5 349.3
103.7
Exceptional gain
1.1
1.2 0.3 2.3
0.7
Profit before taxation
179.1
172.5 81.8 351.6
104.4
Mining and income taxation
65.0
65.4 32.4 130.4
41.3
- Normal taxation
35.1
35.5 18.6 70.6
29.9
- Deferred taxation
29.9
29.9 13.8 59.8
11.4
Net profit
114.1
107.1 49.4 221.2
63.1
Attributable to:
- Ordinary shareholders
104.0
98.3 43.6 202.3
53.4
- Minority shareholders
10.1
8.8 5.8 18.9
9.7
Exceptional items:
Profit on sale of investments
0.7
- -
0.7
0.3
Profit on sale of assets
0.3
1.2 -
1.5
-
Other
0.1
- 0.3 0.1
0.4
Total exceptional items
1.1
1.2 0.3 2.3
0.7
Taxation
(0.4)
(0.4) (0.1) (0.8)
(0.2)
Net exceptional items after tax and minorities
0.7
0.8 0.2 1.5
0.5
Net earnings
104.0
98.3 43.6 202.3
53.4
Net earnings per share (cents)
20
20 9 40
11
Headline earnings
103.3
97.5 43.4 200.8
52.9
Headline earnings per share (cents)
20
20 9 40
11
Diluted earnings per share (cents)
20
20 9 40
11
Net earnings excluding gains and losses on financial
instruments and foreign debt, net of cash and exceptional items
76.0
98.8 45.6 174.8
56.1
Net earnings per share excluding gains and losses on financial
instruments and foreign debt, net of cash and exceptional items
(cents)
15
20 9 35
11
South African rand/United States dollar conversion rate
7.38
7.10 6.53 7.24
6.52
South African rand/Australian dollar conversion rate
5.66
5.38 4.88 5.52
4.92
Gold sold – managed
ozs (000)
1,080
1,071 1,105 2,151
2,165
Gold price received
$/oz
609
622 482 615
460
Total cash costs
$/oz
353
350 315 351
318
13
I
GOLD FIELDS RESULTS Q2F2007
Balance sheet
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand
United States Dollars
December
2006
Restated
June
2006
December
2006
Restated
June
2006
Property, plant and equipment
43,362.7
24,069.5
6,212.4
3,239.5
Non-current assets
550.4
484.0
78.9
65.1
Investments
1,838.9
2,483.9
263.5
334.3
Current assets
6,111.0
4,351.2
875.5
585.6
- Other current assets
4,698.5
2,733.7
673.1
367.9
- Cash and deposits
1,412.5
1,617.5
202.4
217.7
Total assets
51,863.0
31,388.6
7,430.3
4,224.5
Shareholders’ equity
27,764.3
19,851.5
3,977.7
2,671.8
Deferred taxation
3,551.2
5,454.7
508.8
734.1
Long-term loans
2,177.9
2,021.6
312.0
272.1
Environmental rehabilitation provisions
1,127.6
1,079.3
161.5
145.3
Post-retirement health care provisions
22.0
18.0
3.2
2.4
Current liabilities
17,220.0
2,963.5
2,467.1
398.8
- Other current liabilities
8,446.6
2,641.8
1,210.2
355.5
- Current portion of long-term loans
8,773.4
321.7
1,256.9
43.3
Total equity and liabilities
51,863.0
31,388.6
7,430.3
4,224.5
South African rand/US dollar conversion rate
6.98
7.43
South African rand/Australian dollar conversion rate
5.47
5.44
Condensed statement of changes in equity
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand
United States Dollars
December
2006
Restated
December
2005
December
2006
Restated
December
2005
Balance at the beginning of the financial year
19,851.5
16,534.1
2,671.8
2,467.8
Effect of change in accounting policy – capitalisation of ORD costs
-
464.6
-
69.3
Issue of share capital
28.4
0.6
4.1
0.1
Increase in share premium
7,164.5
5.8
1,026.4
0.9
Marked to market valuation of listed investments
156.2
234.2
22.4
35.9
Dividends paid
(545.4)
(196.8)
(78.1)
(29.4)
Increase in share-based payment reserve
38.1
31.2
5.5
4.9
Profit attributable to ordinary shareholders
1,464.6
348.5
202.3
53.4
Profit attributable to minority shareholders
136.8
63.1
18.9
9.7
Decrease in minority interests
(121.4)
(66.6)
(13.0)
(10.5)
Currency translation adjustment and other
(409.0)
(607.6)
117.4
37.0
Balance as at the end of December
27,764.3
16,811.1
3,977.7
2,639.1
Reconciliation of quarterly headline earnings with net earnings
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand
United States Dollars
December
2006
September
2006
Restated
December
2005
December
2006
September
2006
Restated
December
2005
Net earnings
766.8
697.8 284.2
104.0
98.3 43.6
Profit on sale of investments
(4.7)
(0.4) -
(0.7)
- -
Taxation effect of profit on sale of investments
-
- -
-
- -
Profit on sale of assets
(2.8)
(8.3) -
(0.3)
(1.2) -
Taxation effect of profit on sale of assets
2.7
3.1 -
0.4
0.4 -
Other after tax adjustments
(0.3)
- (1.2)
(0.1)
- (0.2)
Headline earnings
761.7
692.2 283.0
103.3
97.5 43.4
Headline earnings per share – cents
147
140 57
20
20 9
Based on headline earnings as given above divided by
517,356,586 (September 2006 – 495,505,475 and December
2005 – 492,600,779) being the weighted average number of
ordinary shares in issue for the period
GOLD FIELDS RESULTS Q2F2007
I
14
Cash flow statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand
Quarter
Six months to
December
2006
September
2006
Restated
December
2005
December
2006
Restated
December
2005
Cash flows from operating activities
1,381.2
1,609.3 749.2
2,990.5
1,235.3
Profit before tax and exceptional items
1,313.3
1,216.0 531.2
2,529.3
676.1
Exceptional items
7.8
8.7 1.8 16.5
4.5
Amortisation and depreciation
745.1
680.7 535.1
1,425.8
1,033.9
Change in working capital
(320.9)
9.9 (266.4) (311.0)
(386.8)
Taxation paid
(85.6)
(314.8) (57.1) (400.4)
(134.8)
Other non-cash items
(278.5)
8.8 4.6
(269.7)
42.4
Dividends paid
-
(555.9) -
(555.9)
(196.8)
Ordinary shareholders
-
(545.4) -
(545.4)
(196.8)
Minority shareholders in subsidiaries
-
(10.5) -
(10.5)
-
Cash flows from investing activities
(10,135.8)
(1,307.2) (622.1)
(11,443.0)
(1,136.0)
Capital expenditure – additions
(1,376.0)
(1,188.0) (594.3)
(2,564.0)
(1,102.8)
Capital expenditure – proceeds on disposal
2.9
8.4 3.6 11.3
7.8
Purchase of subsidiaries
(8,676.8)
- -
(8,676.8)
-
Purchase of investments
(77.5)
(121.4) (26.8) (198.9)
(38.9)
Proceeds on the disposal of investments
6.9
2.2 -
9.1
8.4
Environmental and post-retirement health care payments
(15.3)
(8.4) (4.6)
(23.7)
(10.5)
Cash flows from financing activities
9,016.4
(168.9) 6.4
8,847.5
(200.2)
Loans received
9,057.9
- -
9,057.9
-
Loans repaid
-
(155.6) -
(155.6)
(140.0)
Minority shareholders loans received
(44.6)
(45.5) (66.6) (90.1)
(66.6)
Shares issued
3.1
32.2 73.0 35.3
6.4
Net cash inflow/(outflow)
261.8
(422.7) 133.5
(160.9)
(297.7)
Translation adjustment
(73.2)
29.1 4.1
(44.1)
(140.1)
Cash at beginning of period
1,223.9
1,617.5 2,799.6 1,617.5
3,375.0
Cash at end of period
1,412.5
1,223.9 2,937.2 1,412.5
2,937.2
United States Dollars
Quarter
Six months to
December
2006
September
2006
Restated
December
2005
December
2006
Restated
December
2005
Cash flows from operating activities
189.8
226.7 119.3 416.5
194.5
Profit before tax and exceptional items
178.0
171.3 81.5
349.3
103.7
Exceptional items
1.1
1.2 0.3 2.3
0.7
Amortisation and depreciation
101.0
95.9 82.0
196.9
158.6
Change in working capital
(44.4)
1.4 (40.8) (43.0)
(59.3)
Taxation paid
(7.4)
(44.3) (4.4)
(51.7)
(15.7)
Other non-cash items
(38.5)
1.2 0.7
(37.3)
6.5
Dividends paid
-
(78.3) -
(78.3)
(29.4)
Ordinary shareholders
-
(76.8) -
(76.8)
(29.4)
Minority shareholders in subsidiaries
-
(1.5) -
(1.5)
-
Cash flows from investing activities
(1,396.4)
(184.1) (95.9)
(1,580.5)
(174.3)
Capital expenditure – additions
(186.8)
(167.3) (91.2) (354.1)
(169.2)
Capital expenditure – proceeds on disposal
0.4
1.2 0.1 1.6
1.2
Purchase of subsidiaries
(1,198.5)
- -
(1,198.5)
-
Purchase of investments
(10.4)
(17.1) (4.1)
(27.5)
(6.0)
Proceeds on the disposal of investments
1.0
0.3 -
1.3
1.3
Environmental and post-retirement health care payments
(2.1)
(1.2) (0.7) (3.3)
(1.6)
Cash flows from financing activities
1,261.4
(23.8) 0.7
1,237.6
(31.0)
Loans received
1,265.7
- -
1,265.7
-
Loans repaid
0.4
(21.9) -
(21.5)
(21.5)
Minority shareholders loans received
(5.1)
(6.4) (10.5) (11.5)
(10.5)
Shares issued
0.4
4.5 11.2 4.9
1.0
Net cash inflow/(outflow)
54.8
(59.5) 24.1 (4.7)
(40.2)
Translation adjustment
(13.4)
2.8 (5.3)
(10.6)
(2.4)
Cash at beginning of period
161.0
217.7 442.3 217.7
503.7
Cash at end of period
202.4
161.0 461.1 202.4
461.1
15
I
GOLD FIELDS RESULTS Q2F2007
Hedging / Derivatives
The Group’s policy is to remain unhedged to the gold price. However, hedges are sometimes undertaken on a project specific basis as follows:
•
to protect cash flows at times of significant expenditure,
•
for specific debt servicing requirements, and
•
to safeguard the viability of higher cost operations.
Gold Fields may from time to time establish currency financial instruments to protect underlying cash flows.
Gold Fields has various currency financial instruments - those remaining are described in the schedule. It has been decided not to account for these
instruments under the hedge accounting rules of IAS 39 and accordingly the positions have been marked to market.
Position at end of December 2006
Western Areas Limited Gold Derivative Structure
The existing option positions are detailed in the table below:
US Dollar Denominated Gold Call and Put Options
Year ended 30 June
2007
2008
2009
2010
2011
2012
2013
2014
Notional
Amount
Strike
Price
(US$/oz)
Notional
Amount
Strike
Price
(US$/oz)
Notional
Amount
Strike
Price
(US$/oz)
Notional
Amount
Strike
Price
(US$/oz)
Notional
Amount
Strike
Price
(US$/oz)
Notional
Amount
Strike
Price
(US$/oz)
Notional
Amount
Strike
Price
(US$/oz)
Notional
Amount
Strike
Price
(US$/oz)
Long Put Option
204,516 288.20 214,224
288.20 209,436 293.20 213,960
303.20 200,436
313.20 205,920
313.20 205,056 323.20 196,332
333.20
Short Call Option
205,572 288.70 164,784
288.70 161,100 293.70 164,580
303.70 149,808
313.70 158,400
313.70 157,740 323.70 151,032
333.70
Long Call Option
85,392 323.70 88,980
333.70 87,000 348.70
88,872
358.70
83,256
373.70 85,536
398.70 85,188 413.70
81,552
428.70
Short Call Option
63,252 348.70 65,916
363.70 64,440 378.70
65,832
393.70
61,668
408.70 63,360
423.70 63,096 438.70
60,408
453.70
The marked to market valuation of all transactions making up the positions in the above table was a negative R2,673.4 million (US$383.4 million). The value was based on a US dollar gold price of US$634.22/oz and an exchange rate of US$/ZAR 6.9732 and the prevailing interest rates and volatilities at the time.
The Option premium payable is detailed in the table below:
2007 2008 2009 2010 2011 2012 2013 2014
Deferred Premium (US$ - 000`s)
25,000
25,000
25,000
25,000
25,000
25,000
25,000
12,500
The marked to market valuation of all transactions making up the positions in the above table was a negative R1,092.0 million (US$156.6 million). The value was based on an exchange rate of US$/ZAR 6.9732 and the prevailing interest rates and volatilities at the time.
Gold purchases – Gold ounces 275,000 at an average of US$627.9 per ounce
As part of the close-out of the WAL hedge book, WAL accumulated the delta in the spot gold market beginning on 16 December 2006. The marked to market value of all transactions making up the position in the above position was a positive R18.2 million (US$2.6 million). The value was based on an exchange rate of US dollar/Rand 6.9750 and the spot US dollar gold price of US$620.80 and the prevailing interest rates an volatility at the time. The spot purchases were rolled to mature on 22 January 2007. Subsequently the position was rolled to mature on 30 January 2007.
US Dollars / Australian Dollars call options
Year ended 30 June
2007
Australian dollar call options:
Amount (US dollars)
- 000’s
25,000
Average strike price
- (US$/A$)
0.7670
The marked to market value of all transactions making up the positions in the above table was a positive US$0.5 million. This was based on an exchange rate of A$/US$ 0.7836. The value was based on the prevailing interest rates and volatilities at the time. This derivative has since been matured resulting in a cash flow of US$0.6 million.
US Dollars / Rand forward purchases
Year ended 30 June
2007
Forward purchases:
Amount (US Dollars)
- 000’s
30,000
Average rate
- (ZAR/US$)
7.3002
The marked to market value of all transactions making up the positions in the above table was a negative R5.7 million (US$0.8 million). The value was based on an exchange rate of US$6.9750 and the prevailing interest rates and volatilities at the time. The forward purchases of US$30 million matured on 5 December 2006. These were extended to mature on 6 June 2007, resulting in a cash inflow of R9.6 million.
Diesel Hedge
On 3 July 2006, Gold Fields Ghana purchased a one year Asian style (average monthly price) call option in respect of 58.8 million litres of diesel, settled monthly, to protect against adverse energy price movements. The call option resulted in a premium of US$2.5 million, paid upfront, at a strike price of US$0.5716 per litre (US$676.20 per metric ton). This equates to US$73.89 per barrel brent crude. The price at the end of December was US$62.06 per barrel and US$0.4595 cents per litre respectively. The balance of the unexpired options are given below:
Year ended 30 June
2007
Forward purchases:
Amount (litres)
- 000’s
34,300
Strike price
- US$/litre
0.5716
Conversion factor from US dollar per metric ton to US dollar cents per litre = 1,183
The marked to market value of all transactions making up the position above was a positive US$0.1 million. The value was based on an IPE Gasoil
price of US$0.4722 per litre (US$558.61 per metric ton). The value was based on the prevailing interest rates and volatilities at the time.
GOLD FIELDS RESULTS Q2F2007
I
16
Total cash costs
Gold Institute Industry Standard
All figures are in Rand millions unless otherwise stated
South African Operations
International Operations
Ghana Venezuela Australia
#
.
Total Mine
Operations
Total Driefontein
Kloof Beatrix
South
Deep+
Total
Tarkwa
Damang
Choco 10
St Ives
Agnew
Operating costs
(1)
December
2006
2,974.7
1,794.7
660.5
629.1
392.1
113.0
1,180.0
454.4 165.8 78.4 372.2
109.2
September 2006
2,763.6
1,644.0
650.0
615.5
378.5
-
1,119.6
428.5 142.4 69.6 392.0
87.1
Financial year to date
5,738.3
3,438.7
1,310.5 1,244.6
770.6
113.0
2,299.6
882.9 308.2 148.0 764.2
196.3
Gold-in-process and
December 2006
(69.4)
(21.8)
-
-
-
(21.8)
(47.6)
(25.0) 3.0
(0.2)
(14.8)
(10.6)
inventory change*
September 2006
(13.3)
-
-
-
-
-
(13.3)
(3.2) 7.8
(4.1)
(12.4)
(1.4)
Financial year to date
(82.7)
(21.8)
-
-
-
(21.8)
(60.9)
(28.2) 10.8 (4.3) (27.2)
(12.0)
Less:
December 2006
8.9
6.4
3.0
2.0
1.4
-
2.5
0.8 - -
1.7
-
Rehabilitation costs
September 2006
8.7
6.4
3.0
2.0
1.4
-
2.3
0.7 - -
1.6
-
Financial year to date
17.6
12.8
6.0
4.0
2.8
-
4.8
1.5 - -
3.3
-
Production taxes
December 2006
6.5
6.5
2.5
2.5
1.5
-
-
- - - -
-
September 2006
7.2
7.2
3.3
2.5
1.4
-
-
- - - -
-
Financial year to date
13.7
13.7
5.8
5.0
2.9
-
-
- - - -
-
General and admin
December 2006
132.8
71.0
28.9
24.5
17.6
-
61.8
27.3 4.4 10.6 15.4
4.1
September 2006
123.1
71.7
29.0
24.1
18.6
-
51.4
23.4 3.7 11.6 9.9
2.8
Financial year to date
255.9
142.7
57.9
48.6
36.2
-
113.2
50.7 8.1 22.2 25.3
6.9
Exploration costs
December 2006
7.8
-
-
-
-
-
7.8
- 0.7
- 6.4
0.7
September 2006
8.8
-
-
-
-
-
8.8
- 2.1
- 6.1
0.6
Financial year to date
16.6
-
-
-
-
-
16.6
- 2.8
- 12.5
1.3
Cash operating costs
December 2006
2,749.3
1689.0
626.1
600.1
371.6
91.2
1,060.3
401.3 163.7 67.6 333.9
93.8
September 2006
2,602.5
1,558.7
614.7
586.9
357.1
-
1,043.9
401.2 144.4 53.9 362.0
82.3
Financial year to date
5,351.8
3,247.7
1,240.8 1,187.0
728.7
91.2
2,104.1
802.5 308.1 121.5 695.9
176.1
Plus:
December 2006
6.5
6.5
2.5
2.5
1.5
-
-
- - - -
-
Production taxes
September 2006
7.2
7.2
3.3
2.5
1.4
-
-
- - - -
-
Financial year to date
13.7
13.7
5.8
5.0
2.9
-
-
- - - -
-
Royalties
December 2006
56.6
-
-
-
-
-
56.6
24.4 6.6 4.0 13.8
7.8
September 2006
50.9
-
-
-
-
-
50.9
23.1 6.4 2.1 13.8
5.5
Financial year to date
107.5
-
-
-
-
-
107.5
47.5 13.0 6.1 27.6
13.3
TOTAL CASH COSTS
(2)
December 2006
2,812.4
1,695.5
628.6
602.6
373.1
91.2
1,116.9
425.7 170.3 71.6 347.7
101.6
September 2006
2,660.6
1,565.9
618.0
589.4
358.5
-
1,094.7
424.3 150.8 56.0 375.8
87.8
Financial year to date
5,473.0
3,261.4
1,246.6 1,192.0
731.6
91.2
2,211.6
850.0 321.1 127.6 723.5
189.4
Plus:
December 2006
690.9
373.7
122.4
152.1
89.9
9.3
317.2
66.9 9.6 13.8
226.9
Amortisation*
September 2006
643.8
342.8
119.8
139.5
83.5
-
301.0
66.5 7.1 12.7
214.7
Financial year to date
1,334.7
716.5
242.2
291.6
173.4
9.3
618.2
133.4 16.7 26.5
441.6
Rehabilitation
December 2006
8.9
6.4
3.0
2.0
1.4
-
2.5
0.8 - -
1.7
September 2006
8.7
6.4
3.0
2.0
1.4
-
2.3
0.7 - -
1.6
Financial year to date
17.6
12.8
6.0
4.0
2.8
-
4.8
1.5 - -
3.3
December 2006
3,512.2
2,075.6
754.0
756.7
464.4
100.5
1,436.6
493.4 179.9 85.4
677.9
TOTAL PRODUCTION
COSTS
(3)
September 2006
3,313.1
1,915.1
740.8
730.9
443.4
-
1,398.0
491.5 157.9 68.7
679.9
Financial year to date
6,825.3
3,990.7
1,494.8 1,487.6
907.8
100.5
2,834.6
984.9 337.8 154.1
1,357.8
Gold sold
December 2006
1,080.2
649.3
247.3
230.6
149.5
21.9
430.9
178.8 51.6 22.8 124.6
53.0
- thousand ounces September 2006
1,071.1
649.3
257.5
242.7
149.1
-
421.8
173.6 48.5 17.2 123.4
59.2
Financial year to date
2,151.3
1,298.6
504.8
473.3
298.6
21.9
852.7
352.4 100.1 40.0 248.0
112.2
TOTAL CASH COSTS
December 2006
353
354
344
354
338
564
351
323 447 426 378
260
- US$/oz September 2006
350
340
338
342
339
-
365
344 438 458 429
209
Financial year to date
351
347
341
348
338
564
358
333 443 440 403
233
TOTAL CASH COSTS
December 2006
83,707
83,952
81,721
84,021
80,237
133,724
83,338
76,537 106,106 100,987 89,706
61,576
- R/kg September 2006
79,862
77,543
77,163
78,077
77,330
-
83,431
78,589 100,000 104,478 97,941
47,691
Financial year to date
81,793
80,748
79,396
80,973
78,785
133,724
83,384
77,548 103,148 102,490 93,803
54,254
TOTAL PRODUCTION
December 2006
441
433
413
445
421
621
452
374 472 508
517
COSTS September 2006
436
415
405
424
419
-
467
399 459 561
525
- US$/oz
Financial year to date
438
424
409
434
420
621
459
386 466 532
521
DEFINITIONS
Total cash costs and Total production costs are calculated in accordance with the Gold Institute Industry standard.
(1)
Operating costs – All gold mining related costs before amortisation/depreciation, changes in gold inventory, taxation and exceptional items.
(2)
Total cash costs – Operating costs less off-mine costs, including general and administration costs, as detailed in the table above.
(3)
Total production costs – Total cash costs plus amortisation/depreciation and rehabilitation provisions, as detailed in the table above.
* Adjusted for amortisation/depreciation (non-cash item) excluded from gold-in-process change.
Average exchange rates are US$1 = R7.38 and US$1 = R7.10 for the December 2006 and September 2006 quarters respectively.
# As a significant portion of the acquisition price was allocated to tenements of St Ives and Agnew based on endowment ounces and also as these two Australian operations are entitled to transfer and then off-set tax losses from one company to another, it is not meaningful to split the income statement below operating profit.
+ The acquisition of South Deep is effective from 1 December 2006. Therefore, these results include activities for the month of December only.
Restated total cash cost on the assumption that Ore Reserve Development (ORD) is fully expensed
South African
Operations
International
Operations
Total Mine
Operations
Total Driefontein
Kloof Beatrix
South
Deep+
Total
Total cash costs as above
December 2006
2,812.4 1,695.5
628.6
602.6
373.1
91.2
1,116.9
(ORD capitalised)
September 2006
2,660.6 1,565.9
618.0
589.4
358.5
-
1,094.7
Financial year to date
5,473.0 3,261.4
1,246.6
1,192.0
731.6
91.2
2,211.6
Add back ORD
December 2006
246.2 246.2
94.3
96.4
55.5
-
-
September 2006
233.1 233.1
85.4
87.9
59.8
-
-
Financial year to date
479.3 479.3
179.7
184.3
115.3
-
-
Restated total cash costs#
December 2006
3,058.6 1,941.7
722.9
699.0
428.6
91.2
1,116.9
September 2006
2,893.7 1,799.0
703.4
677.3
418.3
-
1,094.7
Financial year to date
5,952.3 3,740.7
1,426.3
1,376.3
846.9
91.2
2,211.6
Restated total cash costs
December 2006
384
405
396
411
388
564
351
- US$ per ounce
September 2006
381
390
385
393
395
-
365
Financial year to date
382
398
390
402
392
564
358
Restated total cash costs
December 2006
91,035 96,143
93,981
97,462
92,172
133,724
83,338
- Rand per kilogram
September 2006
86,859 89,086
87,826
89,720
90,229
-
83,431
Financial year to date
88,956 92,615
90,841
93,492
91,202
133,724
83,384
#Restated total cash costs relates to total cash costs prior to the change in accounting policy.
+ The acquisition of South Deep is effective from 1 December 2006. Therefore, these results include activities for the month of December only.
17
I
GOLD FIELDS RESULTS Q2F2007
Operating and financial results
South African Operations
South African Rand
Total Mine
Operations
Total Driefontein
Kloof Beatrix
South
Deep+
Operating Results
Ore milled/treated (000 tons) December 2006
13,109
3,778 1,673 986 935
184
September 2006
12,858
3,679 1,703 992 984
-
Financial year to date
25,967
7,457 3,376 1,978 1,919
184
Yield (grams per ton)
December 2006
2.6
5.4 4.6 7.3 5.0
4.6
September 2006
2.6
5.5 4.7 7.6 4.7
-
Financial year to date
2.6
5.4 4.7 7.4 4.8
4.6
Gold produced (kilograms)
December 2006
33,754
20,352 7,692 7,172 4,650
838
September 2006
33,283
20,194 8,009 7,549 4,636
-
Financial year to date
67,037
40,546 15,701 14,721 9,286
838
Gold sold (kilograms)
December 2006
33,598
20,196 7,692 7,172 4,650
682
September 2006
33,315
20,194 8,009 7,549 4,636
-
Financial year to date
66,913
40,390 15,701 14,721 9,286
682
Gold price received (Rand per kilogram)
December 2006
144,485
144,083 144,371 144,423 143,398
141,935
September 2006
142,035
142,121 141,978 141,820 142,860
-
Financial year to date
143,265
143,102 143,150 143,088 143,129
141,935
Total cash costs (Rand per kilogram)
December 2006
83,707
83,952 81,721 84,021 80,237 133,724
September 2006
79,862
77,543 77,163 78,0 77 77,330
-
Financial year to date
81,793
80,748 79,396 80,973 78,785 133,724
Total production costs (Rand per kilogram)
December 2006
104,536
102,773 98,024
105,508 99,871 147,361
September 2006
99,448
94,835 92,496 96,821 95,643
-
Financial year to date
102,003
98,804 95,204
101,053 97,760 147,361
Operating costs (Rand per ton)
December 2006
227
475 395 638 419
614
September 2006
215
447 382 620 385
-
Financial year to date
221
461 388 629 402
614
Financial Results (Rand million)
Revenue December 2006
4,854.4
2,909.9 1,110.5 1,035.8 666.8
96.8
September 2006
4,731.9
2,870.0 1,137.1 1,070.6 662.3
-
Financial year to date
9,586.3
5,789.9 2,247.6 2,106.4 1,329.1
96.8
Operating costs
December 2006
2,974.7
1,794.7 660.5 629.1 392.1
113.0
September 2006
2,763.6
1,644.0 650.0 615.5 378.5
-
Financial year to date
5,738.3
3,438.7 1,310.5 1,244.6 770.6
113.0
Gold inventory change
December 2006
(89.7)
(21.8) - - -
(21.8)
September 2006
(18.3)
- - - -
-
Financial year to date
(108.0)
(21.8) - - -
(21.8)
Operating profit
December 2006
1,969.4
1,137.2 450.0 406.7 274.7
5.6
September 2006
1,986.6
1,226.0 487.1 455.1 283.8
-
Financial year to date
3,956.0
2,363.2 937.1 861.8 558.5
5.6
Amortisation of mining assets
December 2006
710.3
372.7 122.4 151.3 89.7
9.3
September 2006
648.8
342.8 119.8 139.5 83.5
-
Financial year to date
1,359.1
715.5 242.2 290.8 173.2
9.3
Net operating profit
December 2006
1,259.1
763.5 327.6 255.4 185.0
(3.7)
September 2006
1,337.8
883.2 367.3 315.6 200.3
-
Financial year to date
2,596.9
1,646.7 694.9 571.0 385.3
(3.7)
Other income/(expense)
December 2006
(17.1)
(42.9) (10.8) (9.5) (11.3)
(11.3)
September 2006
(16.8)
(26.7) (8.8) (7.3) (10.6)
-
Financial year to date
(33.9)
(69.6) (19.6) (16.8) (21.9)
(11.3)
Profit before taxation
December 2006
1,242.0
721.4 316.8 245.9 173.7
(15.0)
September 2006
1,321.0
856.5 358.5 308.3 189.7
-
Financial year to date
2,563.0
1,577.9 675.3 554.2 363.4
(15.0)
Mining and income taxation December 2006
423.2
229.6 104.1 62.9 67.9
(5.3)
September 2006
476.9
302.8 122.8 106.9 73.1
-
Financial year to date
900.1
532.4 226.9 169.8 141.0
(5.3)
- Normal taxation
December 2006
205.3
75.3 75.1 0.1 0.1
-
September 2006
246.3
112.9 112.8 0.1
-
-
Financial year to date
451.6
188.2 187.9 0.2 0.1
-
- Deferred taxation
December 2006
217.9
154.3 29.0 62.8 67.8
(5.3)
September 2006
230.6
189.9 10.0
106.8 73.1
-
Financial year to date
448.5
344.2 39.0
169.6 140.9
(5.3)
Profit before exceptional items
December 2006
818.8
491.8 212.7 183.0 105.8
(9.7)
September 2006
844.1
553.7 235.7 201.4 116.6
-
Financial year to date
1,662.9
1,045.5 448.4 384.4 222.4
(9.7)
Exceptional items
December 2006
7.9
2.9 0.8 - 2.1
-
September 2006
8.3
8.2 4.5 - 3.7
-
Financial year to date
16.2
11.1 5.3 - 5.8
-
Net profit
December 2006
826.7
494.7 213.5 183.0 107.8
(9.7)
September 2006
852.4
561.9 240.2 201.4 120.3
-
Financial year to date
1,679.1
1,056.6 453.7 384.4 228.2
(9.7)
December 2006
822.0
493.0 213.1 183.0 106.6
(9.7)
September 2006
859.3
556.6 237.3 201.3 118.0
-
Net profit excluding gains and losses on
financial instruments and foreign debt and
exceptional items
Financial year to date
1,681.3
1,049.6 450.4 384.3 224.6
(9.7)
Capital expenditure
December 2006
1,025.8
564.7 177.4 190.7 156.1
40.5
September 2006
821.7
432.7 143.7 183.7 105.3
-
Financial year to date
1,847.5
997.4 321.1 374.4 261.4
40.5
Planned for next six months to June 2007
2,423.2
1,359.9 496.5 358.6 240.1
264.7
+ The acquisition of South Deep is effective from 1 December 2006. Therefore, these results include activities for the month of December only.
GOLD FIELDS RESULTS Q2F2007
I
18
Operating and financial results
International Operations
Ghana
Venezuela Australia #
South African Rand
Total
Tarkwa
Damang
Choco 10
St Ives
Agnew
Operating Results
Ore milled/treated (000 tons)
December 2006
9,331 5,588 1,326
357 1,742
318
September 2006
9,179 5,514 1,317
306 1,698
344
Financial year to date
18,510 11,102 2,643
663
3,440
662
Yield (grams per ton)
December 2006
1.4 1.0 1.2 2.0 2.2 5.2
September 2006
1.4 1.0 1.1 1.7 2.3 5.4
Financial year to date
1.4 1.0 1.2 1.8 2.2 5.3
Gold produced (kilograms)
December 2006
13,402 5,562 1,605
709 3,876 1,650
September 2006
13,089 5,399 1,508
504 3,837 1,841
Financial year to date
26,491 10,961 3,113 1,213
7,713
3,491
Gold sold (kilograms)
December 2006
13,402 5,562 1,605
709 3,876 1,650
September 2006
13,121 5,399 1,508
536 3,837 1,841
Financial year to date
26,523 10,961 3,113 1,245
7,713
3,491
Gold price received (Rand per kilogram)
December 2006
145,090 144,966 145,171 142,877 144,788 147,091
September 2006
141,902 142,323 141,976 136,940 141,725 142,423
Financial year to date
143,513 143,664 143,624 140,321 143,265 144,629
Total cash costs (Rand per kilogram)
December 2006
83,338 76,537
106,106 100,987 89,706 61,576
September 2006
83,431 78,589
100,000 104,478 97,941 47,691
Financial year to date
83,384 77,548
103,148 102,490 93,803 54,254
Total production costs (Rand per kilogram)
December 2006
107,193 88,709
112,087 120,451
122,675
September 2006
106,547 91,035
1 04,708 128,172
119,743
Financial year to date
106,873 89,855
108,513 123,775
121,189
Operating costs (Rand per ton)
December 2006
126 81
125 220 214 343
September 2006
122 78
108 228 231 253
Financial year to date
124 80
117 223 222 297
Financial Results (Rand million)
Revenue
December 2006
1,944.5 806.3 233.0 101.3
561.2 242.7
September 2006
1,861.9 768.4 214.1 73.4
543.8 262.2
Financial year to date
3,806.4 1,574.7 447.1
174.7
1,105.0
504.9
Operating costs
December 2006
1,180.0 454.4 165.8 78.4
372.2 109.2
September 2006
1,119.6 428.5 142.4 69.6
392.0
87.1
Financial year to date
2,299.6 882.9 308.2 148.0
764.2 196.3
Gold inventory change
December 2006
(67.9) (29.1) 2.9 (0.3)
(23.9) (17.5)
September 2006
(18.3) (4.5) 7.9 (4.1) (19.8)
2.2
Financial year to date
(86.2) (33.6) 10.7 (4.4)
(43.7) (15.3)
Operating profit
December 2006
832.4 381.0 64.3 23.2
212.9 151.0
September 2006
760.6 344.4 63.8
7.9
171.6 172.9
Financial year to date
1,593.0 725 .4 128.1 31.1
384.5 323.9
Amortisation of mining assets
December 2006
337.6 71.0 9.8 13.9
242.9
September 2006
306.0 67.8 7.0 12.7
218.5
Financial year to date
643.6 138.8 16.8 26.6
461.4
Net operating profit
December 2006
494.8 310.0 54.5
9.3
121.0
September 2006
454.6 276.6 56.8 (4.8)
126.0
Financial year to date
949.4 586.6 111.3
4.5
247.0
Other income/(expense)
December 2006
25.8 2.1 0.5 1.8
21.4
September 2006
9.9 (7.4) 0.2 6.1
11.0
Financial year to date
35.7 (5.3) 0.7 7.9
32.4
Profit before taxation
December 2006
520.6 312.1 55.0 11.1
142.4
September 2006
464.5 269.2 57.0
1.3
137.0
Financial year to date
985.1 581.3 112.0 12.4
279.4
Mining and income taxation December 2006
193.6 95.5 21.3 17.5
59.3
September 2006
174.1 86.2 19.2 14.1
54.6
Financial year to date
367.7 181.7 40.5 31.6
113.9
- Normal taxation
December 2006
130.0 85.3 11.0 12.1
21.6
September 2006
133.4 91.1 8.9 1 4.1
19.3
Financial year to date
263.4 176.4 19.9 26.2
40.9
- Deferred taxation
December 2006
63.6 10.2 10.3 5.4
37.7
September 2006
40.7 (4.9) 10.3
-
35.3
Financial year to date
104.3 5.3
20.6 5.4
73.0
Profit before exceptional items
December 2006
327.0 216.6 33.7 (6.4)
83.1
September 2006
290.4 183.0 37.8 (12.8)
82.4
Financial year to date
617.4 399.6 71.5 (19.2)
165.5
Exceptional items
December 2006
5.0 - - -
5.0
September 2006
0.1 - - -
0.1
Financial year to date
5.1 - - -
5.1
Net profit
December 2006
332.0 216.6 33.7 (6.4)
88.1
September 2006
290.5 183.0 37.8 (12.8)
82.5
Financial year to date
622.5 399.6 71.5 (19.2)
170.6
December 2006
329.0 217.5 34.1 (6.4)
83.8
September 2006
302.7 191.0 40.6 (12.8)
83.9
Net profit excluding gains and losses on
financial instruments and foreign debt and
exceptional items
Financial year to date
631.7 408.5 74.7 (19.2)
167.7
Capital expenditure
December 2006
461.1 188.5 52.5 37.9
126.3
55.9
September 2006
389.0 90.2 48.1 77.2 116.3 57.2
Financial year to date
850.1 278.7 100.6 115.1
242.6 113.1
Planned for next six months to June 2007
1,063.3 487.9 113.8 91.4
257.7 112.5
19
I
GOLD FIELDS RESULTS Q2F2007
Operating and financial results
South African Operations
United States Dollars
Total Mine
Operations
Total Driefontein Kloof Beatrix
South
Deep
+
Operating Results
Ore milled/treated (000 tons)
December 2006
13,109
3,778 1,673 986 935
184
September 2006
12,858
3,679 1,703 992 984
-
Financial year to date
25,967
7,457 3,376 1,978 1,919
184
Yield (ounces per ton)
December 2006
0.083
0.173 0.148 0.234 0.160 0.146
September 2006
0.083
0.176 0.151 0.245 0.151
-
Financial year to date
0.083
0.175 0.150 0.239 0.156 0.146
Gold produced (000 ounces)
December 2006
1,085.2
654.3 247.3 230.6 149.5
26.9
September 2006
1,070.1
649.3 257.5 242.7 149.1
-
Financial year to date
2,155.3
1,303.6 504.8 473. 3 298.6
26.9
Gold sold (000 ounces)
December 2006
1,080.2
649.3 247.3 230.6 149.5
21.9
September 2006
1,071.1
649.3 257.5 242.7 149.1
-
Financial year to date
2,151.3
1,298.6 504.8 473.3 298.6
21.9
Gold price received (dollars per ounce)
December 2006
609
607 608 609 604 598
September 2006
622
623 622 621 626
-
Financial year to date
615
615 615 615 615 598
Total cash costs (dollars per ounce)
December 2006
353
354 344 354 338 564
September 2006
350
340 338 342 339
-
Financial year to date
351
347 341 348 338 564
Total production costs (dollars per ounce)
December 2006
441
433 413 445 421 621
September 2006
436
415 405 424 419
-
Financial year to date
438
424 409 434 420 621
Operating costs (dollars per ton)
December 2006
31
64 53 86 57 83
September 2006
30
63 54 88 54
-
Financial year to date
31
64 54 87 55 83
Financial Results ($ million)
Revenue
December 2006
657.6
394.1 150.3 140.2 90.3
13.4
September 2006
666.5
404.2 160.2 150.8 93.3
-
Financial year to date
1,324.1
798.3 310.4 291.0 183.6
13.4
Operating costs
December 2006
403.4
243.5 89.5 85.2 53.1 15.6
September 2006
389.2
231.5 91.5 86.7 53.3
-
Financial year to date
792.6
475.0 181.0 171.9 106.4
15.6
Gold inventory change
December 2006
(12.3)
(3.0) - - -
(3.0)
September 2006
(2.6)
- - - - -
Financial year to date
(14.9)
(3.0) - - -
(3.0)
Operating profit
December 2006
266.5
153.7 60.8 54.9 37.2
0.8
September 2006
279.9
172.7 68.7 64.1 40.0
-
Financial year to date
546.4
326.4 129.4 119.0 77.2
0.8
Amortisation of mining assets
December 2006
96.2
50.4 16.6 20.5 12.0
1.3
September 2006
91.4
48.3 16.9 19.6 11.9
-
Financial year to date
187.7
98.8 33.5 40.2 23.9
1.3
Net operating profit
December 2006
170.3
103.3 44.2 34.4 25.1 (0.5)
September 2006
188.5
124.4 51.8 44.5 28.1
-
Financial year to date
358.7
227.6 96.0 78.9 53.2 (0.5)
Other income/(expenses)
December 2006
(2.4)
(5.9) (1.5) (1.3) (1.5) (1.6)
September 2006
(2.4)
(3.8) (1.2) (1.0) (1.5)
-
Financial year to date
(4.7)
(9.6) (2.7) (2.3) (3.0) (1.6)
Profit before taxation
December 2006
167.9
97.3 42.7 33.1 23.6 (2.1)
September 2006
186.1
120.7 50.5 43.5 26.6
-
Financial year to date
354.0
218.0 93.3 76.5 50.2 (2.1)
Mining and income taxation December 2006
57.1
30.9 14.6 8.4 9.2 (0.7)
September 2006
67.2
42.7 17.3 15.1 10.3
-
Financial year to date
124.3
73.5 31.3 23.5 19.5 (0.7)
- Normal taxation
December 2006
27.7
10.1 10.1
-
-
-
September 2006
34.7
15.9 15.9
-
-
-
Financial year to date
62.4
26.0 26.0
-
-
-
- Deferred taxation
December 2006
29.4
20.8 4.0 8.4 9.2 (0.7)
September 2006
32.5
26.8 1.4 15.1 10.3
-
Financial year to date
61.9
47.5 5.4 23.4 19.5 (0.7)
Profit before exceptional items
December 2006
110.8
66.5 28.6 24.7 14.4 (1.3)
September 2006
119.0
78.0 33.2 28.4 16.4
-
Financial year to date
229.7
144.4 61.9 53.1 30.7 (1.3)
Exceptional items
December 2006
1.1
0.4 0.1 - 0.3
-
September 2006
1.1
1.1 0.6 - 0.5
-
Financial year to date
2.2
1.5 0.7 - 0.8
-
Net profit
December 2006
111.9
66.9 28.8 24.7 14.7 (1.3)
September 2006
120.2
79.2 33.9 28.4 16.9
-
Financial year to date
232.0
146.0 62.7 53.1 31.5 (1.3)
December 2006
111.1
66.6 28.7 24.7 14.5 (1.3)
September 2006
121.9
78.4 33.5 28.4 16.6
-
Net profit excluding gains and losses on
financial instruments and foreign debt and
exceptional items
Financial year to date
232.2
145.1 62.2 53.1 31.1 (1.3)
Capital expenditure
December 2006
139.5
76.8 24.1 25.8 21.3
5.6
September 2006
115.7
60.9 20.2 25.9 14.8
-
Financial year to date
255.2
137.8 44.4 51.7 36.1
5.6
Planned for next six months to June 2007
347.2
194.8 71.1 51.4 34.4 37.9
Average exchange rates were US$1 = R7.38 and US$1 = R7.10 for the December 2006 and September 2006 quarters respectively. The Australian Dollar exchange rates were A$1 = R5.66 and A$1 = R5.38 for the December 2006 and September 2006 quarters respectively. # As a significant portion of the acquisition price was allocated to tenements of St Ives and Agnew on endowment ounces and also as these two Australian operations are entitled to transfer and then off-set tax losses from one company to another, it is not meaningful to split the income statement below operating profit. Figures may not add as they are rounded independently. + The acquisition of South Deep is effective from 1 December 2006. Therefore, these results include activities for the month of December only.
GOLD FIELDS RESULTS Q2F2007
I
20
Operating and financial results
International Operations
Australian Dollars
Ghana
Venezuela
Australia #
Australia #
United States Dollars
Total
Tarkwa
Damang
Choco 10
St Ives
Agnew
St Ives
Agnew
Operating Results
Ore milled/treated (000 tons)
December 2006
9,331 5,588 1,326 357
1,742 318
1,742 318
September 2006
9,179 5,514 1,317 306
1,698 344
1,698 344
Financial year to date
18,510
11,102 2,643 663
3,440 662
3,440 662
Yield (ounces per ton)
December 2006
0.046 0.032 0.039 0.064
0.072 0.167
0.072 0.167
September 2006
0.046 0.031 0.037 0.053
0.073 0.172
0.073 0.172
Financial year to date
0.046 0.032 0.038 0.059
0.072 0.170
0.072 0.170
Gold produced(000 ounces)
December 2006
430.9 178.8 51.6 22.8
124.6 53.0
124.6 53.0
September 2006
420.8 173.6 48.5 16.2
123.4 59.2
123.4 59.2
Financial year to date
851.7 352.4 100.1 39.0
248.0 112.2
248.0 112.2
Gold sold (000 ounces)
December 2006
430.9 178.8 51.6 22.8
124.6 53.0
124.6 53.0
September 2006
421.8 173.6 48.5 17.2
123.4 59.2
123.4 59.2
Financial year to date
852.7 352.4 100.1 40.0
248.0 112.2
248.0 112.2
Gold price received
December 2006
611 611 612 602
610 620
796 808
(dollars per ounce)
September 2006
622 623 622 600
621 624
820 823
Financial year to date
617 617 617 602
615 621
807 815
Total cash costs
December 2006
351 323 447 426
378 260
493 338
(dollars per ounce)
September 2006
365 344 438 458
429 209
564 276
Financial year to date
358 333 443 440
403 233
529 306
Total production costs
December 2006
452 374 472 508
517
674
(dollars per ounce)
September 2006
467 399 459 561
525
693
Financial year to date
459 386 466 532
521
683
Operating costs
December 2006
17 11 17 30
29 47
38 61
(dollars per ton)
September 2006
17 11 15 32
33 36
43 47
Financial year to date
17 11 16 31
31 41
40 54
Financial Results ($ million)
Revenue
December 2006
263.5 109.3 31.6 13.8 76.0 32.8
99.1 42.8
September 2006
262.2 108.2 30.2 10.3 76.6 36.9
101.1 48.7
Financial year to date
525.7 217.5 61.7 24.1
152.6 69.7
200.1 91.5
Operating costs
December 2006
159.9 61.6 22.5 10.6
50.3 14.8
65.6 19.4
September 2006
157.7 60.4 20.1 9.8
55.2 12.3
72.9 16.2
Financial year to date
317.6 121.9 42.6 20.4
105.6 27.1
138.4 35.6
Gold inventory change
December 2006
(9.3) (4.0) 0.4
-
(3.2) (2.4)
(3.8) (3.2)
September 2006
(2.6) (0.6) 1.1 (0.6)
(2.8) 0.3
(4.1) 0.4
Financial year to date
(11.9) (4.6) 1.5 (0.6)
(6.0) (2.1)
(7.9) (2.8)
Operating profit
December 2006
112.9 51.7 8.7 3.2
28.9 20.4
37.3 26.6
September 2006
107.1 48.5 9.0 1.1
24.2 24.4
32.3 32.1
Financial year to date
220.0 100.2 17.7
4.3 53.1 44.7
69.6 58.7
Amortisation of mining assets
December 2006
45.8 9.6 1.3 1.9
33.0
41.8
September 2006
43.1 9.5 1.0 1.8
30.8
41.8
Financial year to date
88.9 19.2 2.3 3.7
63.7
83.6
Net operating profit
December 2006
67.1 42.1 7.4 1.3
16.4
22.1
September 2006
64.0 39.0 8.0 (0.7)
17.7
22.6
Financial year to date
131.1 81.0 15.4 0.6
34.1
44.7
Other income/(expenses)
December 2006
3.5 0.3 0.1 0.2
2.9
3.8
September 2006
1.4 (1.0)
- 0.9
1.5
2.0
Financial year to date
4.9 (0.7) 0.1 1.1
4.5
5.9
Profit before taxation
December 2006
70.6 42.4 7.4 1.5
19.3
25.9
September 2006
65.4 37.9 8.0 0.2
19.3
24.6
Financial year to date
136.0 80.3 15.4 1.7
38.6
50.6
Mining and income taxation December 2006
26.2 13.0 2.8 2.4
8.0
10.7
September 2006
24.5 12.1 2.7 2.0
7.7
9.9
Financial year to date
50.8 25.1 5.6 4.4
15.7
20.6
- Normal taxation
December 2006
17.6 11.5 1.5 1.6
2.9
3.8
September 2006
18.8 12.8 1.3 2.0
2.7
3.6
Financial year to date
36.4 24.4 2.7 3.6
5.6
7.4
- Deferred taxation
December 2006
8.6 1.4 1.3 0.7
5.1
6.9
September 2006
5.7 (0.7) 1.5
-
5.0
6.3
Financial year to date
14.4 0.7 2.8 0.7
10.1
13.2
Profit before exceptional items
December 2006
44.4 29.4 4.6 (0.9)
11.2
15.2
September 2006
40.9 25.8 5.3 (1.8)
11.6
14.7
Financial year to date
85.2 55.2 9.9 (2.7)
22.8
29.9
Exceptional items
December 2006
0.7 - - -
0.7
0.9
September 2006
- - - -
-
-
Financial year to date
0.7 - - -
0.7
0.9
Net profit
December 2006
45.1 29.4 4.6 (0.9)
11.9
16.1
September 2006
40.9 25.8 5.3 (1.8)
11.6
14.8
Financial year to date
85.9 55.2 9.9 (2.7)
23.5
30.9
December 2006
44.5 29.5 4.6 (0.9)
11.4
15.3
September 2006
42.7 26.9 5.7 (1.8)
11.8
15.1
Net profit excluding gains and
losses on financial instruments and
foreign debt, and exceptional items
Financial year to date
87.2 56.4 10.3 (2.7)
23.2
30.4
Capital expenditure
December 2006
62.6 25.8 7.1 5.0 17.1 7.6
22.3 9.9
September 2006
54.8 12.7 6.8 10.9 16.4 8.1
21.6 10.6
Financial year to date
117.4 38.5 13.9 15.9 33.5
15.6
43.9 20.5
Planned for next six months to
June
2007
152.3 69.9 16.3 13.1 36.9
16.1
47.1
20.6
21
I
GOLD FIELDS RESULTS Q2F2007
Underground and surface
South African Rand and Metric Units
South African Operations
International Operations
Ghana Venezuela Australia
Operating Results
Total Mine
Operations
Total Driefontein
Kloof Beatrix
South
Deep+
Total
Tarkwa
Damang
Choco 10
St Ives
Agnew
Ore milled / treated (000 ton)
- underground
December 2006
3,308 2,866 937 893 935 101 442 - - -
348
94
September 2006
3,316 2,800 964 852 984
- 516 - - -
396
120
Financial year to date
6,624 5,666 1,901 1,745 1,919 101 958 - - -
744
214
- surface
December 2006
9,801 912 736 93
- 83
8,889 5,588 1,326 357 1,394 224
September 2006
9,542 879 739 140
-
-
8,663 5,514 1,317 306 1,302 224
Financial year to date
19,343 1,791 1,475 233
-
83 17,552 11,102 2,643
663 2,696
448
- total
December 2006
13,109 3,778 1,673 986 935 184 9,331 5,588 1,326 357 1,742 318
September 2006
12,858 3,679 1,703 992 984
- 9,179 5,514 1,317 306 1,698 344
Financial year to date
25,967 7,457 3,376 1,978 1,919 184 18,510 11,102 2,643
663 3,440
662
Yield (grams per ton)
- underground
December 2006
6.8 6.8 7.5 7.8 5.0 7.7 6.8 - - -
5.3
12.7
September 2006
6.8 6.9 7.5 8.7 4.7 - 6.1 - - -
4.4
12.0
Financial year to date
6.8 6.8 7.5 8.3 4.8 7.7 6.5 - - -
4.8
12.3
- surface
December 2006
1.2 1.0 0.9 2.1 - 0.7 1.2 1.0 1.2 2.0 1.5 2.0
September 2006
1.1 1.0 1.1 0.9 - - 1.2 1.0 1.1 1.7 1.6 1.8
Financial year to date
1.1 1.0 1.0 1.4 - 0.7 1.2 1.0 1.2 1.8 1.5 1.9
- combined
December 2006
2.6 5.4 4.6 7.3 5.0 4.6 1.4 1.0 1.2 2.0 2.2 5.2
September 2006
2.6 5.5 4.7 7.6 4.7 - 1.4 1.0 1.1 1.7 2.3 5.4
Financial year to date
2.6 5.4 4.7 7.4 4.8 4.6 1.4 1.0 1.2 1.8 2.2 5.3
Gold produced (kilograms)
- underground
December 2006
22,453
19,426 7,016 6,978 4,650 782 3,027 - - -
1,836
1,191
September 2006
22,449
19,287 7,228 7,423 4,636
- 3,162 - - -
1,725
1,437
Financial year to date
44,902
38,713 14,244 14,401 9,286
782 6,189 - - -
3,561
2,628
- surface
December 2006
11,301 926 676 194
- 56
10,375 5,562 1,605 709 2,040 459
September 2006
10,834 907 781 126
-
-
9,927 5,399 1,508 504 2,112 404
Financial year to date
22,135 1,833 1,457 320
-
56 20,302 10,961 3,113 1,213 4,152
863
- total
December 2006
33,754
20,352 7,692 7,172 4,650 838 13,402 5,562 1,605 709 3,876 1,650
September 2006
33,283
20,194 8,009 7,549 4,636
- 13,089 5,399 1,508 504 3,837 1,841
Financial year to date
67,037
40,546 15,701 14,721 9,286
838 26,491 10,961 3,113 1,213 7,713 3,491
Operating costs (Rand per ton)
- underground
December 2006
593 605 654 696 419
1,078 517 - - -
499
584
September 2006
543 567 626 711 385
- 414 - - -
398
466
Financial year to date
568 586 640 703 402
1,078 461 - - -
445
518
- surface
December 2006
103
66 65 86 - 50 107 81
125
220
143
242
September 2006
101
64 63 72 - - 105 78
108
228
180
139
Financial year to date
102
65 64 78 - 50 106 80
117
223
161
191
- total
December 2006
227 475 395 638 419 614 126 81
125
220
214
343
September 2006
215 447 382 620 385
- 122 78
108
228
231
253
Financial year to date
221 461 388 629 402 614 124 80
117
223
222
297
+ The acquisition of South Deep is effective from 1 December 2006. Therefore, these results include activities for the month of December only.
Restated operating cost per ton on the assumption that the Ore Reserve Development (ORD) is fully expensed
South African
Operations
International
Operations
Total Mine
Operations
Total Driefontein
Kloof Beatrix
South
Deep+
Total
- underground
December 2006
672
696 754 803 479
1,078 517
September 2006
612
650 715 814 445
- 414
Financial year to date
643
673 734 808 462
1,078 461
- surface
December 2006
103
66 65 86 - 50 107
September 2006
101
64 63 72 - - 105
Financial year to date
102
65 64 78 - 50 106
- total
December 2006
247
544 451 736 479 614 126
September 2006
233
510 432 709 445
- 122
Financial year to date
240
527 441 722 462 614 124
+ The acquisition of South Deep is effective from 1 December 2006. Therefore, these results include activities for the month of December only.
GOLD FIELDS RESULTS Q2F2007
I
22
Developmet results
Development values represent the actual results of sampling and no allowance has been made for any adjustments which may be necessary
when estimating ore reserves. All figures below exclude shaft sinking metres.
Driefontein
December 2006 quarter
September 2006 quarter
Year to date F2007
Reef
Carbon
Leader
Main
VCR
Carbon
Leader
Main VCR
Carbon
Leader
Main VCR
Advanced (m)
4,955
1,025
1,474 4,376 824 1,839 9,331 1,849
3,313
Advanced on reef
(m)
851
189
105 993 163 246
1,844 352
351
Sampled (m)
768
123
189 942 141 252
1,710 264
441
Channel width
(cm)
88
65
95 60 44 77 73 54
85
Average value
-
(g/t)
19.6
10.7
10.9 19.7 11.3 13.4 19.6 11.0 12.2
-
(cm.g/t)
1,720
696
1,039 1,185 502 1,028
1
1,425 592 1,033
Kloof
December 2006 quarter
September 2006 quarter
Year to date F2007
Reef Libanon
Kloof
Main
VCR Libanon
Kloof
Main
VCR Libanon Kloof
Main
VCR
Advanced (m)
-
289
1,729
6,922 12 312
1,587
6,719 12
601
3,316
13,641
Advanced on reef
(m)
-
28
288
1,078 -
54
440
1,320 -
82
728
2,398
Sampled (m)
-
24
261
962 -
57
438
979 -
81
699
1,941
Channel width
(cm)
-
75
156
69 -
85
100
78 -
82
121
73
Average value
-
(g/t)
-
5.5
6.5
26.7 -
6.0
9.6
19.5 -
5.9
8.1
22.9
-
(cm.g/t)
-
417
1,014
1,836 -
506
954
1,522
2
-
480
976
1,677
Beatrix December
2006
quarter
September
2006 quarter
Year to date F2007
Reef
Beatrix
Kalkoenkrans Beatrix
Kalkoenkrans Beatrix
Kalkoenkrans
Advanced (m)
8,778
2,638 8,366 2,629 17,144 5,267
Advanced on reef
(m)
1,488
163 1,516
56 3,004 219
Sampled (m)
1,017
84 1,470
63 2,487 147
Channel width
(cm)
103
123 77 137 87
129
Average value
-
(g/t)
11.4
8.6 12.2 19.7 11.8 13.7
-
(cm.g/t)
1,172
1,065 932
2,698
1,030
1,765
South Deep+
December 2006 quarter
September 2006 quarter
Year to date F2007
Reef
VCR
Elsburgs VCR
Elsburgs VCR
Elsburgs
Advanced (m)
43
323 - -
43
323
Advanced on reef
(m)
-
251 - - -
251
Sampled (m)
-
251 - - -
251
Channel width
(cm)
-
569 - - -
569
Average value
-
(g/t)
-
6.6 - - -
6.6
-
(cm.g/t)
-
3,746 - - -
3,746
1) VCR values at 4 shaft were high, but low grades at 2 and 6 shafts reduced the overall value.
2) The off-reef development is focused on accessing the higher grade VCR between 3 and 4 shafts.
+ The acquisition of South Deep is effective from 1 December 2006. Therefore, these results include activities for the month of December only.
23
I
GOLD FIELDS RESULTS Q2F2007
Administration and corporate information
Corporate Secretary
CAIN FARREL
Telephone: (+27)(11) 644 2525
Facsimile: (+27)(11) 484 0626
e-mail: cain.farrel@goldfields.co.za
Registered offices
JOHANNESBURG
Gold Fields Limited
24 St Andrews Road
Parktown
Johannesburg
2193
Postnet Suite 252
Private Bag x 30500
Houghton 2041
Tel: (+27)(11) 644-2400
Fax: (+27)(11) 484-0626
LONDON
St James ’s Corporate Services Limited
6 St James ’s Place
London SW1A 1NP
United Kingdom
Telephone:(+44)(20) 7499 3916
Facsimile: (+44)(20) 7491 1989
American Depository
Receipts Transfer Agent
Bank of New York
Shareholder Relations
P O Box 11258
New York, NY20286 –1258
US toll-free telephone: (1)(888) 269 2377
e-mail: shareowner-svcs@mail.bony.com
Gold Fields Limited
Incorporated in the Republic of South Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN – ZAE 000018123
Investor relations
South Africa
WILLIE JACOBSZ
Telephone: (+27)(11) 644 2460
Facsimile: (+27)(11) 484 0639
e-mail: williej@goldfields.co.za
NERINA BODASING
Telephone: (+27)(11) 644 2630
Facsimile: (+27)(11) 484 0639
e-mail: nerina.bodasing@goldfields.co.za
North America
CHERYL A MARTIN
Telephone: (+1)(303) 796 8683
Facsimile: (+1)(303) 796 8293
e-mail: camartin@gfexpl.com
Transfer Secretaries
South Africa
Computershare Investor Services 2004
(Proprietary) Limited
Ground Floor
70 Marshall Street
Johannesburg, 2001
P O Box 61051
Marshalltown, 2107
Telephone: (+27)(11) 370 5000
Facsimile: (+27)(11) 370 5271
United Kingdom
Capita Registrars
Bourne House
34 Beckenham Road
Beckenham
Kent BR3 4TU
England
Telephone: (+44)(20) 8639 2000
Facsimile: (+44)(20) 8658 3430
WEBSITE
http://www.goldfields.co.za
Forward Looking Statements
Certain statements in this document constitute “forward
looking statements” within the meaning of Section 27A of
the US Securities Act of 1933 and Section 21E of the US
Securities Exchange Act of 1934.
Such forward looking statements involve known and
unknown risks, uncertainties and other important factors
that could cause the actual results, performance or
achievements of the company to be materially different
from the future results, performance or achievements
expressed or implied by such forward looking statements.
Such risks, uncertainties and other important factors
include among others: economic, business and political
conditions in South Africa; decreases in the market price of
gold; hazards associated with underground and surface
gold mining; labour disruptions; changes in government
regulations, particularly environmental regulations; changes
in exchange rates; currency devaluations; inflation and
other macro-economic factors; and the impact of the AIDS
crisis in South Africa. These forward looking statements
speak only as of the date of this document.
The company undertakes no obligation to update publicly
or release any revisions to these forward looking
statements to reflect events or circumstances after the date
of this document or to reflect the occurrence of
unanticipated events.
Gold Fields Limited
Incorporated in the Republic of South Africa
Registration number 1968/004880/06
Share code:
GFI
Issuer code:
GOGOF
ISIN: ZAE 000018123
Directors
A J Wright (Chairman)
I D Cockerill * (Chief Executive Officer)
N J Holland * (Chief Financial Officer)
K Ansah#
A Grigorian °
J G Hopwood
J M McMahon *
D M J Ncube
R L Pennant-Rea *
P J Ryan
T M G Sexwale
C I von Christierson
* British
# Ghanaian
° Russian
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
Date: 25 January 2007
GOLD FIELDS LIMITED
By:
Name: Mr W J Jacobsz
Title: Senior Vice President: Investor
Relations and Corporate Affairs