6-K 1 goldfields_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 2008
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- ________
Operating profit of R2 billion and
net earnings of R1.9 billion
in the quarter ended 31 December 2007
JOHANNESBURG. 31 January 2008, Gold Fields Limited (NYSE & JSE: GFI) today
announced net earnings for the December 2007 quarter of R1,938 million, compared
with restated net earnings of R429 million and R767 million for the September 2007 and
the December 2006 quarters respectively. In US dollar terms net earnings for the
December 2007 quarter were US$281 million, compared with restated earnings of
US$60 million and US$104 million for the September 2007 and the December 2006
quarters respectively.
December 2007 quarter salient features:
•
Attributable gold production, of 960,000 ounces 3 per cent lower than the previous
quarter;
•
Net earnings and normalised earnings increase by 350 per cent and 48 per cent
respectively;
•
Sale of Essakane and Venezuelan assets successfully concluded releasing R4,174
million (US$615 million) in value;
•
Draft three of the South African royalty bill published during the quarter, if passed in
its present form, would result in a significantly higher royalty than originally proposed
at current gold prices.
Statement by Ian Cockerill, Chief Executive Officer of
Gold Fields:
“During the December quarter we saw a
welcome recovery at our international
operations.
Regrettably the South African
operations, in particular Driefontein, were
adversely affected by a number of safety
related work stoppages. We are fully
committed to stop this through a resolute
focus on safe production, which is our
highest priority.
Despite an overall decline of three per
cent in production Gold Fields saw a
welcome four per cent improvement in its
operating margin, on the back of the
improved gold price. This is a trend
which we hope to maintain and improve
upon through continued focus on
productivity and costs. Cost control will
be paramount in the face of ongoing
input cost pressures on all fronts
precipitated by inflation trends and the
resource boom. Current power
shortages in South Africa will impact
production in the March quarter and into
the foreseeable future.
This quarter saw some good results on
the cost side of our business with total
cash costs increasing by only three per
cent, despite the lower production and
ongoing cost pressures.
Production at the Cerro Corona project is
forecast to commence by the middle of
2008 as previously announced. This
project will add more than 400,000 high
margin ounces per year to our
production profile.”
Stock data
JSE Limited – (GFI)
Number of shares in issue
Range - Quarter
ZAR93.58 – ZAR127.79
- at end December 2007
652,486,582
Average Volume - Quarter 2,534,152 shares /
- average for the quarter
652,412,191
NYSE – (GFI)
Free Float
100%
Range - Quarter
US$13.61 – US$19.13
ADR Ratio
1:1
Average Volume - Quarter 5,632,277 shares /
Bloomberg / Reuters
GFISJ / GFLJ.J
1
I
GOLD FIELDS RESULTS
Q2F2008
Health and safety
We deeply regret to report 13 separate accidents which resulted in 17
fatalities for the Group during the December quarter. As a result the
fatal injury frequency rate for the December quarter increased to 0.32
per million hours worked, compared with the previous quarter’s 0.17.
The lost time injury frequency rate improved from 9.8 to 6.9, the
serious injury frequency rate improved from 5.1 to 4.0, and the days
lost injury frequency rate improved from 276 to 248. A full explanation
of the safety terms used in this report is available on our web site.
The majority of these accidents mentioned above occurred at the Kloof
mine where five accidents resulted in eight fatalities. Driefontein had
three accidents, while South Deep and Beatrix had one each. There
were four fall-of-rock related accidents, four tramming or cleaning
related accidents, one spillage conveyance related accident and a
blasting related accident. Both Kloof and Driefontein were issued with
instructions (“Section 54’s”) to stop operations by the Principal
Inspector of the Gauteng area of the Department of Minerals and
Energy, until full re-assessments of their base line risk assessments
and codes of practices were reviewed by all stakeholders and
independent third parties. In addition, physical audits were made of
workings and practices. Despite the above Kloof 7 shaft and Beatrix
West section achieved 1,000,000 fatality free shifts in the quarter.
The Presidential Audit initiative, which came about as a result of recent
poor safety performance across the mining sector, commenced at the
end of the December quarter. Gold Fields will probably be audited in
the March quarter and fully supports this initiative; as it does any
process that has the potential to improve health and safety at our
operations.
At the international operations, Tarkwa had two fatal accidents which
resulted in three fatalities, one as a result of an electrocution, and two
as a result of a conveyor belt incident. Cerro Corona had one
electrocution fatal accident during the reporting period.
Gold Fields remains committed to a philosophy of zero harm, and
benchmarks itself against the Ontario benchmark, as well as pursuing
the Mine Health and Safety Council milestones in South Africa.
Behavioural based interventions will continue at all operations in the
Group. All operations have been audited and achieved OHSAS 18001
certification, except South Deep and Cerro Corona. The operations
not currently certified are implementing the requirements of OHSAS
18001, with certification planned by the end of the financial year. A
programme similar to the successful “Let’s be Safe” initiative at
Driefontein has been adapted and is being implemented at Kloof to
improve its safety performance.
Financial review
Quarter ended 31 December 2007 compared with
quarter ended 30 September 2007
Discontinued operations
The Venezuelan assets (including Choco 10) which were sold during
the quarter are classed as a discontinued operation for accounting
purposes, and as such all prior periods have been restated to exclude
results from this operation.
Revenue
Attributable gold production (excluding Choco 10 as explained above)
for the December 2007 quarter amounted to 960,000 ounces,
compared with 986,000 ounces in the September quarter, a decrease
of 3 per cent. Production at the South African operations decreased
from 689,000 ounces to 657,000 ounces. Attributable production at
the international operations increased from 297,000 ounces to 303,000
ounces.
At the South African operations gold production was adversely
affected by the one day national strike by the National Union of
Mineworkers (NUM) on 4 December, mine closures at Driefontein and
Kloof related to fatal accidents, as well as labour unrest at Beatrix. At
Driefontein, production decreased 8 per cent due to a combination of
mine closures and lower underground yields. Gold production at Kloof
decreased 2 per cent as a result of lower underground tons due to the
impact of the lost shifts. This was partly offset by an increase in
underground yield. At Beatrix, gold production was similar quarter on
quarter, with the lower volumes mined and processed offset by a slight
increase in yield. At South Deep, gold production decreased 9 per
cent. This was mainly as a result of a decrease in underground
volumes and yield because of a reduction in mining activity on the
conventional Ventersdorp Contact Reef (“VCR”) horizon where a major
fault on the western side of the ore body was intersected in the
September 2007 quarter. This horizon is largely depleted above 95
level. In addition, trackless volumes were lower as a result of a
surface fan failure which affected underground temperatures and
curtailed entry and mining activities for 35 days. This affected the
newly established longhole open stoping area.
At the international operations, gold production at Tarkwa increased 3
per cent due to higher processed volumes. Excessive rains, which
occurred during the September quarter and reduced the availability of
competent material to run the mill effectively, returned to more normal
levels during the second half of the quarter. At Damang, gold
production decreased 7 per cent due to lower volumes and lower
yields. The lower volumes processed was due to plant downtime
caused by a power outage due to a fire at the plant, and the lower
yield was due to lower than forecast grades processed from stockpiled
ore. Gold production at St Ives increased by 7 per cent due to an
increase in yield resulting from improved recoveries at the heap leach
operation. At Agnew, gold production decreased by 4 per cent as
South African Rand
Salient features
#
United States Dollars
Six months to
Quarter
Quarter
Six months to
Dec
2006
Dec
2007
Dec
2006
Sept
2007
Dec
2007
Dec
2007
Sept
2007
Dec
2006
Dec
2007
Dec
2006
61,689
60,522
30,906 30,661 29,861 kg
Gold produced*
oz
(000)
960
986 993 1,946
1,983
81,400
99,988
83,334 98,465 101,532 R/kg
Total cash costs
$/oz
467
431 351 449
350
25,304
24,980
12,752 12,350 12,630 000
Tons milled 000
12,630
12,350 12,752 24,980
25,304
143,322
162,857
144,519 155,333 170,488 R/kg Revenue $/oz
784
680 609 731
616
221
266
227 267 265 R/ton
Operating costs $/ton
39
38 31 38
30
3,925
3,754
1,946 1,716 2,037 Rm
Operating profit $m
300
242 263 542
542
42
36
41 34 38 %
Operating margin %
38
34 41 36
42
1,465
2,367
767 429
1,938 Rm
Net earnings
$m
281
60 104 342
202
289
363
148 66 297 SA c.p.s.
US c.p.s.
43
9 20 52
40
1,454
866
762 411 456 Rm
Headline earnings
$m
67
58 104 125
201
287
133
147 63 70 SA c.p.s.
US c.p.s.
10
9 20 19
40
1,297
1,011
579 408 603 Rm
Net earnings
excluding gains and
losses on foreign
exchange, financial
instruments,
exceptional items
and discontinued
operations
$m
88
57 78 146
179
256
155
112 62 93 SA c.p.s.
US c.p.s.
13
9 16 22
35
* Attributable – All companies wholly owned except for Ghana (71.1%)
.
#
Prior period figure have been restated to exclude the discontinued assets sold during the December 2007 quarter i.e. the Venezuelan assets (Choco 10) and Essakane.
GOLD FIELDS RESULTS
Q2F2008
I 2
predicted, with a decrease in tons processed because of a planned
maintenance shutdown.
The average quarterly US dollar gold price increased from US$680 per
ounce in the September quarter to US$784 per ounce in the
December quarter, a 15 per cent increase. The average rand/US
dollar exchange rate averaged R6.76, compared with the R7.10
achieved in the September quarter. As a result of the above factors,
the rand gold price improved from R155,333 per kilogram to R170,488
per kilogram, a 10 per cent increase. The Australian dollar gold price
increased quarter on quarter from A$812 per ounce to A$886 per
ounce.
The increase in the rand gold price achieved offset the decrease in
production. Revenue in rand terms amounted to R5,430 million
(US$801 million), compared with the previous quarter’s R5,018 million
(US$707 million), an increase of 8 per cent.
Operating costs
Operating costs increased by less than 2 per cent during the
December quarter to R3,341 million (US$494 million), compared with
R3,292 million (US$464 million) in the September quarter. Total cash
costs increased by 3 per cent from R98,465 per kilogram (US$431 per
ounce) to R101,532 per kilogram (US$467 per ounce).
At the South African operations, operating costs increased from
R2,114 million (US$298 million) to R2,174 million (US$321 million), an
increase of 3 per cent. This increase was mainly due to increased
contractor costs, increased sweepings and secondary support costs,
increased repairs and maintenance, additional voluntary shifts,
training, safety interventions, together with transport of surface
material to South Deep from Kloof and general inflationary pressures.
Total cash costs at the South African operations increased from
R94,248 per kilogram (US$413 per ounce) to R101,170 per kilogram
(US$465 per ounce).
Operating costs at the international operations, including gold-in-
process movements, amounted to R1,219 million (US$180 million),
compared with R1,188 million (US$167 million) in the September
quarter, an increase of 3 per cent. In US dollar terms costs at Tarkwa
increased by US$3 million or 6 per cent mainly due to the increase in
production. At Damang, costs increased by US$5 million or 23 per
cent as a consequence of increased volumes mined from the Damang
pit cutback and an increase in on-mine power generation. At St Ives,
operating costs in Australian dollar terms, including gold-in-process
movements, decreased by A$3 million or 5 per cent mainly as a result
of a decrease in maintenance costs. At Agnew, operating costs
increased by A$3 million mainly due to the increase in processed ore
from Songvang. Total cash costs at the international operations were
similar at US$470 per ounce quarter on quarter.
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 R2,037
million (US$300 million). This represented a 19 per cent increase
when compared with the R1,716 million (US$242 million) achieved in
the September quarter. The Group operating margin increased from
34 per cent to 38 per cent. The margin at the South African operations
increased from 36 per cent to 37 per cent, and the margin at the
international operations increased from 30 per cent to 38 per cent.
Amortisation
Amortisation decreased marginally from R771 million (US$109 million)
in the September quarter to R763 million (US$113 million) in the
December quarter. This decrease was mainly due to the lower charge
from Agnew’s Songvang due to the cessation of mining as ore from
the pit was depleted in the September quarter, offset by the
amortisation of discontinued operations at South Deep’s VCR and
adjustments at Beatrix to correct cumulative Ore Reserve
Development amortisation.
Other
Net interest paid was similar at R92 million (US$14 million) when
compared with the September quarter.
The loss on foreign exchange of R5 million (US$1 million), compares
with a loss of R12 million (US$2 million) in the September quarter.
The December quarter’s loss results from the conversion of offshore
cash holdings into the functional currency. The September quarter’s
loss consists largely of an unrealized exchange loss of R11 million
(US$2 million) relating to a US dollar denominated insurance
receivable at South Deep.
The loss on financial instruments for the quarter at R188 million
(US$27 million) compares with a gain of R9 million (US$1 million) for
the September quarter. The loss of R188 million (US$27 million) in the
December quarter comprises a R168 million (US$24 million) mark to
market unrealised loss arising from the agreement with Mvela
Resources which provides that Mvela Resources may acquire a
minimum of 45,000,000 and a maximum of 55,000,000 Gold Fields
shares should it elect to exchange its equity interest in GFIMSA for
Gold Fields’ shares. In terms of IAS 39 the floor and cap arrangement
with Mvela Resources is a derivative instrument and is required to be
valued and marked to market each quarter through earnings. Also
included is a R30 million (US$4 million) unrealised mark to market loss
on share warrants included in the Group’s investment portfolio, partly
offset by a R10 million (US$1 million) gain on the diesel hedge in
Ghana. The gain of R9 million (US$1 million) in the September
quarter comprises a R32 million (US$4 million) mark to market
unrealised gain arising from the agreement with Mvela Resources as
explained above. This was partially offset by a R23 million (US$3
million) mark to market loss on the share warrants mentioned above.
Exploration
Exploration expenditure, decreased from R85 million (US$12 million)
in the September quarter to R79 million (US$12 million) in the
December quarter. Please refer to the Exploration and Corporate
Development section for more detail.
Exceptional items
Exceptional gains in the December quarter amount to R1,417 million
(US$205 million) and mainly comprise, profit on the sale of Essakane
of R1,389 million (US$201 million), and profit on the sale of
investments of R26 million (US$4 million). The gross proceeds from
the sale of Essakane amounted to R1,375 million (US$202 million) and
comprised cash of R1,042 million (US$153 million) and shares in
Orezone Resources Incorporated of R333 million (US$49 million).
Exceptional gains in the September quarter amounted to R29 million
(US$4 million) and include profit on the sale of houses at Beatrix and
South Deep, and profit on the sale of redundant mining equipment at
Driefontein.
Taxation
Taxation for the quarter amounted to R418 million (US$61 million)
compared with R289 million (US$41 million) in the September quarter.
This increase reflects the increase in profit before tax for the quarter.
The tax provision includes normal and deferred taxation on all
operations together with government royalties at the international
operations.
Discontinued operations
During the December quarter the assets in Venezuela were sold. The
gross proceeds from the sale of the Venezuelan assets amounted to
R2,799 million (US$413 million) and comprised cash of R1,219 million
(US$180 million) and shares in Rusoro Mining Limited of R1,580
million (US$233 million). This sale has necessitated the restatement
of prior periods salient features and financial results as required by
IFRS 5. Salient features and financial results of continued and
discontinued operations are detailed in the operating and financial
results from page 16.
The net gain from the sale of the Venezuelan assets in the December
quarter amounted to R119 million (US$17 million). This comprises a
profit on the disposal of the Venezuelan assets of R74 million (US$11
million) and an income on the operational results at Choco 10 for the
two months ended November 2007, the effective date of sale, of R45
million (US$6 million). The loss of R8 million (US$1 million) in the
September quarter was the consolidated loss on the Venezuela
operations.
Earnings
Net profit attributable to ordinary shareholders amounted to R1,938
million (US$281 million) or 297 SA cents per share (US$0.43 per
share), compared with R429 million (US$60 million) or 66 SA cents per
share (US$0.09 per share) in the previous quarter which was restated
as described above.
3
I GOLD FIELDS RESULTS
Q2F2008
Headline earnings i.e. earnings less the after tax effect of asset sales,
impairments, the sale of investments and discontinued operations, was
R456 million (US$67 million) or 70 SA cents per share (US$10 per
share), compared with earnings of R411 million (US$58 million) or 63
SA cents per share (US$0.09 per share) last quarter.
Earnings excluding exceptional items as well as net gains and losses
on foreign exchange, financial instruments and discontinued
operations, amounted to R603 million (US$88 million) or 93 SA cents
per share (US$0.13 per share), compared with earnings of R408
million (US$57 million) or 62 SA cents per share (US$0.09 per share)
reported last quarter.
Balance sheet
The large increase in investments quarter on quarter is mainly due to
the 41.7 million shares valued at R333 million (US$49 million) received
from Orezone Resources Incorporated as part payment for the
Essakane disposal and the 140.0 million shares valued at R1,580
million (US$233 million) received from Rusoro Mining Limited as part
payment for the Venezuelan disposal.
Cash flow
Cash inflow from operating activities for the quarter was R1,148 million
(US$175 million), compared with R985 million (US$131 million) in the
September quarter. This quarter on quarter increase of R163 million
(US$44 million) is mostly due to the increase in operating profit and a
decrease in taxation paid from R361 million (US$59 million) to R130
million (US$14 million), partially offset by a working capital outflow of
R571 million (US$83 million) in the December quarter compared with
an outflow of R224 million (US$32 million) in the September quarter.
Capital expenditure increased from R1,928 million (US$272 million) in
the September quarter to R2,476 million (US$364 million) in the
December quarter. At the South African operations capital
expenditure increased from R740 million (US$104 million) in the
September quarter to R839 million (US$124 million) in the December
quarter. This increase of R99 million includes increased expenditure
on the 9 shaft project at Driefontein of R52 million (US$8 million), an
additional R35 million (US$5 million) on South Deep’s new mine
development project, and various other technical projects.
Expenditure on ore reserve development at Driefontein, Kloof, Beatrix
and South Deep accounted for R94 million (US$14 million), R121
million (US$18 million), R75 million (US$11 million) and R21 million
(US$3 million) respectively. Expenditure on the 9 shaft project at
Driefontein and expenditure on the new mine development project at
South Deep amounted to R93 million (US$14 million) and R103 million
(US$15 million) respectively. Also in South Africa was the payment of
R400 million (US$60 million) in return for various parties agreeing to
relinquish their rights to the Uncle Harry’s ground adjoining Kloof and
South Deep.
Capital expenditure at the international operations increased from
R548 million (US$77 million) to R597 million (US$88 million).
Expenditure in Ghana was similar quarter on quarter where the
majority of expenditure was concentrated on the major projects being
the expansion project at Tarkwa of R196 million (US$29 million) and
the Damang cutback at R42 million (US$6 million). In Australia, capital
expenditure increased from R189 million (US$27 million) to R231
million (US$34 million). This increased expenditure was incurred on
development at Cave Rocks of R29 million (US$4 million) at St Ives,
and R6 million (US$1 million) additional development on Kim South at
Agnew.
Capital expenditure at the Cerro Corona mine in Peru amounted to
R649 million (US$96 million) in the December quarter compared with
R621 million (US$87 million) in the September quarter. Refer to the
Capital and Development Project section for more detail.
Cash proceeds from the sale of Essakane amounted to R1,042 million
(US$150 million).
Cash proceeds from the sale of the Venezuelan assets is reflected in
the cash flow as discontinued operations and amounts to R1,219
million (US$176 million) less capital expenditure of R26 million (US$4
million), giving a net inflow of R1,193 million (US$172 million).
Net cash outflow from financing activities amounted to R1,069 million
(US$152 million). Loan repayments of R1,808 million (US$262 million)
include the repayment of an offshore loan of R1,394 million (US$200
million) and the repayment of a local loan of R414 million (US$62
million). Loans received amounted to R727 million (US$108 million)
and includes a local loan facility draw down of R514 million (US$76
million) and the draw down on the Cerro Corona loan of R213 million
(US$32 million).
Net cash outflow for the quarter was R143 million (US$15 million).
After accounting for a translation loss of R6 million (US$6 million), the
cash balance at the end of December was R1,321 million (US$189
million). The cash balance at the end of September was R1,470
million (US$210 million).
Detailed and operational review
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 (increase in revenue) and Project 100 (reduction in
costs). These projects have proved successful and led to additional
projects, Project 100+ (new projects to further reduce costs) and
Project Beyond (strategic supply chain management and procurement)
as detailed below.
Project 400
Project 400 was aimed at improving revenue such that an additional
R400 million (US$55 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.
Due to the skills shortage, The Mining School of Excellence was
initiated at the Gold Fields Academy to train core skills such as miners,
operators, rock drill operators and production supervisors. The
“Jurasic to Joystick” challenge initiative was launched with the focus
on a greater use of technology to improve safety and productivity. The
theory of constraints initiative (to identify bottlenecks and to improve
the flow of resources and material) has been rolled out at all the South
African shafts and, together with simulations, there is a formidable
focus on improving the flow of men, material, equipment and ore. The
objective of these initiatives is to increase mining volumes whilst
maintaining yields as close as possible to life of mine reserve yields.
All these initiatives have been implemented and are ongoing.
Reconciliation of achieved yields to gold reserves
Year/Quarter
F2007*
Sept
2007**
Dec
2007***
Driefontein:
Life of mine head grade as per published
declarations
#
8.5
8.9
8.9
Life of mine head grade adjusted for
estimated metallurgical recoveries
8.2
8.6
8.6
Driefontein (underground yields achieved)
7.6
8.2
7.7
Kloof
:
Life of mine head grade as per published
declarations 10.1
10.2
10.2
Life of mine head grade adjusted for
estimated metallurgical recoveries
##
9.8 9.9 9.9
Kloof (underground yields achieved)
8.2
8.1
8.4
Beatrix:
Life of mine head grade as per published
declarations 5.5
5.5
5.5
Life of mine head grade adjusted for
estimated metallurgical recoveries
5.3
5.3
5.3
Beatrix (underground yields achieved)
###
4.7 4.1 4.3
South Deep:
Life of mine head grade as per published
declarations 6.1
6.1
6.1
Life of mine head grade adjusted for
estimated metallurgical recoveries
5.9
5.9
5.9
South Deep (underground yields
achieved) 6.2
6.6
6.2
GOLD FIELDS RESULTS
Q2F2008
I 4
Note that the F2007 life of mine reserves were based on a pay limit using a gold price of R100,000 per kilogram, while the current year’s pay limit is based on a gold price of R120,000 per kilogram.
*
Based on the reserve statement at 31 December 2005 and 31 December
2006, except South Deep which is based on the reserve statement as at
30 June 2006. The acquisition of the control of South Deep was effective
from 1 December 2006.
** Based on the reserve statement as at 31 December 2006.
*** Based on the reserve statement as at 30 June 2007.
#
The increase in the Life of Mine head grade from 8.5 to 8.9 grams per ton
is due to an increase in the pay limit, which results in a lower tonnage at
higher grade, and an improved dilution.
##
Kloof’s life of mine head grade as adjusted for estimated metallurgical
recoveries, is higher than that currently achieved due to comparatively low
volumes being mined from the high grade main shaft pillar.
###
The lower yields currently being achieved compared with the Life of mine
estimated yield are as a result of a low mine call factor and increased
stoping widths.
Project 100+
Project 100+ consists of a number of discrete projects focused on
ongoing cost reduction through eliminating inefficiencies and
investment in cost reductions. Examples of these are:
The Eskom demand side management (DSM) project, which consists
of 32 sub-projects, is progressing well. Ten operating sub-projects
have shifted more than 60MW of load out of the daily peak tariff
period, delivering savings of approximately R2 million in the December
quarter. A further 18 projects are underway, with at least 5 of them
due to provide savings during this financial year. The estimated
savings for financial 2008 will exceed R10 million, growing to R20
million in financial 2009.
The conversion from diesel to battery power for underground
locomotives is progressing as planned. The delivery of the first
locomotives and the preparation of battery charging bays, together
with the training of personnel is underway. The project will deliver long
term cost savings from the higher efficiency of battery locomotives,
and has the added benefit of improving underground environmental
conditions. An underground rail-track upgrade project, which will
improve tramming efficiency underground, is progressing to plan.
The pump efficiency monitoring project has entered the monitoring
phase, allowing maintenance practices to be modified to initiate
maintenance based on pump efficiency. The first pump station, which
has been on-line for five months, indicates that the anticipated
efficiency improvement of 5 per cent can be expected. This project will
deliver savings from reduced electricity consumption due to improved
efficiency, and from a reduction in pump repair costs.
On the labour management front, we are in the process of rolling out a
module setting standards and norms for effective labour management.
A human resource shared services centre is planned for the West Wits
area. The intent is to reduce shifts lost as a result, of ineffective
engagement, medical examinations, training, as well as improving
upon the administration processes currently practiced.
On the cost reporting and management side, we are aligning our
process costing model with our process flow to optimise our
benchmark module. In addition, we are re-introducing a budget control
tool to enhance our control and accountability of commodity costs.
Project Beyond: Group Integrated Supply chain
and Strategic Sourcing Optimisation
SA Project Beyond Strategic Sourcing and Supply
Initiatives
As previously reported Project Beyond has successfully delivered
within its targeted three year benefits delivery range end fiscal 2007 of
R288 million contracted benefits. These benefits provided some
baseline optimisation buffering effect for real extreme inflationary
pressures in the current markets. In the December quarter increased
focus was on cost containment management and quality assurance
optimisation planning. Although less than general inflation was
achieved on overall spend, continued extreme inflation pressures were
experienced in areas such as cement products, food, props, cyanide,
underground services, coal and transport. Cost avoidance negotiated
outcomes have been estimated at around R14 million, which
represents savings against baseline inflation.
During this quarter an estimated R8 million of annualised contracted
benefits was delivered through underground service rates re-
negotiated at South Deep, cable specifications standardisation, backfill
switch to alternative product, improved quality of repair scopes of work
and some warranty claims. Cumulative financial year contracted total
cost benefits now stand at R16 million.
For the March quarter focus will continue on the South Deep spend
optimisation, engineering standards and total cost management, and
some longer term optimisation initiatives in areas such as foodstuffs,
oils and lubes, and trackless mining repairs. Further cost inflation
pressures are expected in areas like timber and steel related products.
International Operations Strategic Sourcing and
Integrated Supply Chain Initiatives
As previously reported, total cost initiatives at the International
operations, in parallel with the South African Project Beyond, delivered
around US$28 million contracted benefits by the end of fiscal 2007. In
the December quarter, international strategic sourcing and supply
chain teams also had a strong focus on cost containment. Ghana, for
example, recorded an estimated US$4 million cost inflation avoidance
(keeping baseline costs fairly flat through long term negotiations,
volume aggregation and risk sharing mechanisms) in spite of extreme
industry inflation in areas such as shipping rates, cyanide and grinding
balls.
During the December quarter strategic sourcing initiatives in Australia
delivered over US$1 million in new and multi-year contracted benefits.
New contracted benefits were achieved in spend categories such as
cement and diesel rebates, explosives delivery optimisation, and from
the sale of an obsolete head frame. Cumulative contracted total cost
benefits for fiscal year to date stand at around US$3 million.
For the March quarter, in Ghana, opportunity assessment focus in
areas such as fuel depot management, maintenance and repair
contracts and logistics will continue. Although Australia will continue
with cost optimisation initiatives, strong focus will still be on cost
containment in key long term contract areas such as cyanide and
grinding balls. The newly recruited supply chain management team in
Peru will focus on contract transition planning, staffing and capability
development in line with the planned go live date in the June 2008
quarter.
South African Operations
Royalty bill
On 6 December 2007 the National Treasury released the third draft of
the Mineral and Petroleum Resources Royalty Bill, for a final round of
public comment and parliamentary review. This draft of the Bill
confirms gross sales as the tax base, but takes into account the
process of beneficiation which in the case of gold mines is a deduction
of 0.4 per cent. The new royalty rate structure will be based on a
formula that takes into account profitability. The application of the new
formula on this quarter would result in an effective royalty rate of
approximately 4 per cent for the South African operations on a pro-
forma basis using a rand gold price at the time of writing of R200,000
per kilogram. This compares with a fixed rate of 1.5 per cent applied
in the previous draft. The gold industry will be making submissions to
the National Treasury on this matter.
Power shortages
There was no direct impact on production as a result of electricity load
shedding on the South African operations during the December
quarter. However, the ongoing power shortages in South Africa will
require a combination of aggressive energy saving and energy
efficiency projects to achieve a 10 per cent reduction in electricity use,
and possible participation in Eskom’s Emergency Demand. The 10
per cent reduction by Eskom will impact on gold production and may
regrettably lead to shaft closures and restructuring.
5
I GOLD FIELDS RESULTS Q2F2008
Driefontein
December
2007
September
2007
Gold produced
- kg
7,451
8,098
-
000’ozs
239.6
260.4
Yield - underground
- g/t
7.7
8.2
- combined
- g/t
5.0
5.3
Total cash costs
- R/kg
94,390
85,058
-
US$/oz
434
373
Gold production in the December quarter at 239,600 ounces was down
8 per cent when compared with the September quarter’s 260,400
ounces. A 1-day industry wide strike by employee unions in support of
improved safety and a 4 day mine wide stoppage by the Department of
Minerals and Energy as a result of two tramming related fatalities at 5
shaft had a significant impact on mining operations. The shortfall in
production is attributable to the quality of ore mined, resulting in the
underground yield reducing from 8.2 grams per ton to 7.7 grams per
ton for the quarter. Underground tonnage reduced from 924,000 tons
in the September quarter to 920,000 tons in the December quarter and
surface tonnage decreased from 608,000 tons to 558,000 tons.
Despite the cumulative 5 day mine wide stoppage main development
increased by 1 per cent for the quarter. However, on-reef
development decreased 3 per cent with values down 13 per cent due
to a decrease in grade in the Single Band Carbon Leader in the O-line
at 5 shaft, as well as lower than expected values in the Carbon Leader
at 1 shaft.
Operating costs increased by 3 per cent from R724 million (US$102
million) to R744 million (US$110 million) mainly due to an increase in
sweepings and secondary support, an increase in major repairs and
maintenance and an increase in training costs. Total cash costs
increased 11 per cent in rand terms and 16 per cent in US dollar terms
from R85,058 per kilogram to R94,390 per kilogram and from US$373
per ounce to US$434 per ounce respectively and was negatively
affected by the lower production. The increase in unit costs is due to
the fact that during the 4-day mine wide stoppage a corresponding
reduction in costs was not realised due to the high fixed cost nature of
input costs. Three additional voluntary shifts were mined during the
quarter.
Operating profit was similar quarter on quarter at R523 million (US$77
million).
Capital expenditure increased from R219 million (US$31 million) to
R267 million (US$39 million) quarter on quarter. This increase was
mainly due to an increase from R41 million (US$6 million) to R93
million (US$14 million) on the 9 sub-vertical shaft deepening project.
Shaft sinking on this project is planned to commence during the March
2008 quarter.
The impact of power shortages on production and costs cannot be
accurately determined at this stage, as such no outlook is given for the
March quarter.
Kloof
December
2007
September
2007
Gold produced
- kg
7,179
7,319
- 000’ozs
230.8
235.3
Yield - underground
- g/t
8.4
8.1
- combined
- g/t
7.1
7.4
Total cash costs
- R/kg
91,029
86,269
- US$/oz
419
378
Gold production at Kloof decreased by 2 per cent from 235,300
ounces in the September quarter to 230,800 ounces in the December
quarter. This was due to a 6 per cent decrease in underground
tonnage from 893,000 tons to 839,000 tons resulting from the industry
wide one day strike, an illegal one day strike, an agreed to memorial
day service and various stoppages as a result of instructions given by
the Department of Minerals and Energy through the Section 54
mechanism. All pillar mining was stopped for a period of 5 days as a
result of a fatal accident at 8 shaft and these pillars were fully
reviewed. In addition there was a full 4 day mine wide stoppage to
carry out a safety review. The mine also experienced an underground
fire at 2 sub-vertical shaft which lasted for 16 days. This decrease was
partially offset by an increase in underground yield, which increased
from 8.1 grams per ton to 8.4 grams per ton, and an increase in
surface tons milled from 101,000 tons to 169,000 tons at a slightly
improved yield. The increase in surface yield was due to screening of
waste and additional tons processed through a toll treatment
arrangement with South Deep.
Main development decreased by 12 per cent quarter on quarter, with
the overall on-reef development marginally below forecast. Year to
date values are in line with forecast.
Operating costs increased 4 per cent from R661 million (US$93
million) in the September quarter to R689 million (US$102 million) in
the December quarter. The increase in operating costs was due to
increases in contractor costs for screening and transport of surface ore
toll milled at South Deep, and increases in consumables, maintenance
and training costs. Total cash cost increased from R86,269 per
kilogram to R91,029 per kilogram as a result of the lower gold
production and increased costs. In US dollar terms, total cash costs
increased 10 per cent from US$378 per ounce to US$419 per ounce.
Operating profit increased from R473 million (US$67 million) in the
September quarter to R528 million (US$78 million) in the December
quarter as a result of the higher gold price.
Capital expenditure at R226 million (US$33 million) increased by 4 per
cent when compared with the previous quarter’s expenditure of R218
million (US$31 million). This was mainly due to increased expenditure
on mining equipment (box hole borer), partially offset by decreased
expenditure on the KEA project which has been put on hold due to a
problematic ore body.
The impact of power shortages on production and costs cannot be
accurately determined at this stage, as such no outlook is given for the
March quarter.
Beatrix
December
2007
September
2007
Gold produced
- kg
3,698
3,707
- 000’ozs
118.9
119.2
Yield - underground
- g/t
4.3
4.1
Total cash costs
- R/kg
108,031
106,393
- US$/oz
497
466
Gold production at Beatrix at 118,900 ounces was in line with the
September quarter. A decrease in tons milled from 913,000 tons to
868,000 tons, was offset by a 5 per cent increase in yield from 4.1
grams per ton to 4.3 grams per ton. The decrease in tons milled was
due to more selective mining during the quarter to improve grade,
together with labour unrest at 4 shaft and the one day national strike
by the NUM in December. The 4 shaft operations were closed for 96
hours in November 2007 due to fatalities arising from internal faction
fighting by NUM branch committee supporters. An overall increase in
grade mined contributed to the increased yield, together with the
implementation of the external mine call factor review
recommendations of improved drilling and blasting practices, and
conversion to a more suitable explosive type.
Development decreased by 5 per cent to 10,652 metre in the current
quarter and was impacted by lost days. Main on reef development
increased by 29 per cent to 2,495 metres in the December quarter.
The development values increased from 831cm.g/t to 1,135cm.g/t as a
result of current raises traversing higher grades.
Operating costs increased by 1 per cent quarter on quarter, from R416
million (US$59 million) in the September quarter to R420 million
(US$62 million) in the December quarter. The increase in costs was
GOLD FIELDS RESULTS Q2F2008
I 6
mainly due to the overall increase in the rate of major contracts for
additional drilling and maintenance, and to improved sweepings. Total
cash costs increased 2 per cent from R106,393 per kilogram to
R108,031 per kilogram. In US dollar terms total cash costs increased
7 per cent from US$466 to US$497 per ounce.
Beatrix posted an operating profit of R209 million (US$31 million) for
the quarter compared with R163 million (US$23 million) in the
September quarter as a result of the higher gold price.
Capital expenditure at R142 million (US$21 million) increased
marginally when compared with the previous quarter`s expenditure of
R134 million (US$19 million) due to increased capital development at
the West and South sections.
The impact of power shortages on production and costs cannot be
accurately determined at this stage, as such no outlook is given for the
March quarter.
South Deep
December
2007
September
2007
Gold produced
- kg
2,104
2,312
- 000’ozs
67.6
74.3
Yield - underground
- g/t
6.2
6.6
- combined
- g/t
5.1
4.8
Total cash costs
- R/kg
147,719
132,223
- US$/oz
680
579
Gold production at South Deep decreased by 9 per cent from 74,300
ounces in the September quarter to 67,600 ounces in the December
quarter. This was mainly due to a decrease in the underground yield
from 6.6 grams per ton to 6.2 grams per ton and a decrease in surface
ore processed from 150,000 tons to 83,000 tons. The decrease in
underground yield was due to a reduction in flexibility on the VCR reef
where a geological fault has reduced stoping availability, while surface
ore sources have now been depleted. Tons milled from underground
were similar at 330,000 tons for the quarter.
Development at South Deep increased by 16 per cent from 1,684
metres to 1,946 metres for the December quarter. The mobilisation of
the mechanised crews to develop below 95 level infrastructures
commenced in December.
Operating costs increased by 2 per cent for the quarter from R314
million (US$44 million) to R320 million (US$47 million). This was
mainly due to increased development and the effects of inflationary
increases on commodity prices. As a result of the decreased gold
production, total cash costs increased by 12 per cent from R132,223
per kilogram (US$579 per ounce) to R147,719 per kilogram (US$680
per ounce).
Operating profit decreased from R45 million (US$6 million) in the
September quarter to R36 million (US$5 million) in the December
quarter as a result of the lower gold production, partially offset by the
increased gold price.
Capital expenditure increased in line with forecast from R169 million
(US$24 million) to R204 million (US$30 million). The increase in
expenditure was mainly on equipment related to the new mine
development project and ore reserve development.
Over the last 12 months there has been a full strategic review and we
have come to the conclusion that the current scope of mining activity
at South Deep will have to be changed in order to achieve optimal
production build-up. There are a number of reasons for this.
The Feasibility production build-up is being affected by:
− The lack of permanent shaft infrastructure and services for the
handling of dirty water and ore at the Twins below 95 level;
− Development on all levels is behind schedule, especially below 95
level due to the above mentioned point;
− the Ventersdorp Contact Reef (VCR) horizon having now been
largely depleted above 95 level due to the Waterpan fault on the
western side;
− the lack of sufficient geological information below 95 level which in
turn affects the down-dip mining strategy.
A number of scenarios are being considered to address the above
issues. These include a detailed examination on how to speed up
development and shaft equipping, and increase the rate of de-stress
mining.
The Kloof – South Deep optimisation (“KSDO”) project was completed
during the quarter, which involved a high-level study on six different
scenarios. The results of the study indicate that Scenario KSDO 1
should be advanced to a pre-feasibility level. This scenario envisages
combining the Kloof and South Deep mining operations, whereby
330ktpm of ore will be mined through the South Deep infrastructure,
and 150ktpm through the Kloof 4 shaft complex.
Interim approval has been given to proceed with the development of
the initial access from Kloof 4 sub-vertical on 39 level towards South
Deep, this level being marginally deeper than 110 level at South Deep.
International Operations
Ghana
Tarkwa
December
2007
September
2007
Gold produced
- 000’ozs
158.3
154.0
Yield - heap leach
- g/t
0.7
0.8
- CIL plant
- g/t
1.4
1.5
- combined
- g/t
0.9
0.9
Total cash costs
- US$/oz
413
423
Gold production increased by 3 per cent from 154,000 ounces in the
September quarter to 158,300 ounces in the December quarter. The
abnormally high seasonal rainfall that negatively affected production in
the September quarter subsided during the last 6 weeks of the
December quarter. This had a positive effect on production, resulting
in a 7 per cent increase in plant throughput from 5.21 million tons to
5.59 million tons, and a 14 per cent improvement in mining volumes.
Total tons mined, including capital stripping, increased from 27.7
million tons to 31.5 million tons. Ore mined increased from 4.7 million
tons to 5.5 million tons. The mined grade was slightly lower at 1.24
grams per ton compared with last quarter’s 1.27 grams per ton. The
overall strip ratio for the quarter was lower at 4.59 compared with 4.88
in the September quarter, mainly due to the increased ore mined.
Total feed to the heap leach sections was 4.17 million tons compared
with 3.91 million tons for the September quarter. Heap leach yield for
the quarter was 0.7 grams per ton compared with 0.8 for the
September quarter. The heap leach section produced 94,000 ounces
compared with the 92,300 ounces achieved in the September quarter.
The total feed to the CIL plant was 1.42 million tons compared with
1.30 million tons in the September quarter. CIL yield was 1.4 gram per
ton against 1.5 for the September quarter. The CIL plant produced
64,300 ounces in the December quarter compared with 61,700 ounces
in the September quarter. There was a net gold-in-process build-up of
2,600 ounces for the quarter, which was mainly at the South heap
leach facility.
Operating costs, including gold-in-process movement, increased from
US$64 million (R451 million) to US$67 million (R453 million) in the
September quarter. The increase in cost was matched by an increase
in tonnages treated, keeping operating cost per ton processed at
similar levels to last quarter.
Operating profit was 61 per cent higher at US$61 million (R414
million), compared with US$38 million (R270 million) in the September
quarter. This was in line with the higher gold production and increased
gold price.
7
I GOLD FIELDS RESULTS Q2F2008
Capital expenditure increased from US$43 million (R307 million) to
US$46 million (R314 million) for the quarter, with continued
expenditure on the phase 5 heap leach project and the CIL expansion
project at US$8 million and US$20 million respectively. The capital
cost for the CIL expansion project has been revised from US$126
million to US$161 million as a result of currency fluctuations, cost
escalation and minor scope changes to the project. The late supply of
steel from South Africa as a result of the power shortages may delay
the start-up of the project from the September 2008 quarter to the
December 2008 quarter. Expenditure on the pre-stripping at the
Teberebie cutback was similar to the September quarter at US$11
million.
Gold production is forecast to increase by about 6 per cent for the
March quarter compared to the December quarter. Total cash costs
are expected to increase marginally due to an expected increase in
fuel and power tariffs, which will offset the positive impact of the gold
production increase.
Damang
December
2007
September
2007
Gold produced
- 000’ozs
44.2
47.4
Yield
- g/t
1.2
1.3
Total cash costs
- US$/oz
605
468
Gold production decreased 7 per cent from 47,400 ounces in the
September quarter to 44,200 ounces in the December quarter. This
decrease was due to the lower head grade, which decreased from
1.40 grams per ton in the September quarter to 1.35 grams per ton in
the December quarter, coupled with a 2 per cent decrease in mill feed
tonnage. The drop in grade was due to the grade from the B3
stockpile proving lower than anticipated.
Total tons mined, including capital stripping, increased from 7.1 million
tons in the September quarter to 8.0 million tons for the December
quarter. This increase was as a result of mining additional waste in
order to build an alternate access ramp to the Damang pit. Ore mined
increased from 794,000 tons to 978,000 tons in the December quarter
due to an increase in ore tons mined from the Damang pit cutback and
Tomento pits. The resultant strip ratio was 7.20 compared with the
7.97 in the September quarter.
The mill throughput for the quarter at 1.10 million tons was marginally
lower than the 1.12 million tons in the September quarter, mainly due
to power outages following a fire at a transformer. The primary
crusher was once again running at design capacity. The increased
volumes from the primary crusher allowed for the expansion of the
crushed ore stockpile, which increased from 160,000 tons to 304,000
tons during the quarter. This should result in improved operational and
blend flexibility in plant feed.
Operating costs, including gold-in-process movements, increased from
US$22 million (R155 million) to US$27 million (R183 million). The
main factors contributing to the increase in operating costs were the
higher diesel price, increased power tariff, and the substitution of lower
cost stockpiles with higher cost ore from the pits and lower grade
stockpile ore compared with the previous quarter, increased plant
maintenance costs, and an increase in the mining contractors cost due
to cost increases impacted by longer haulage distances. Total cash
costs increased from US$468 per ounce to US$605 per ounce
reflecting the higher operating costs and lower gold production.
Operating profit for the quarter at US$9 million (R58 million) was
slightly lower than the US$10 million (R69 million) achieved in the
September quarter.
Capital expenditure at US$8 million (R51 million) was similar to the
September quarter with the majority once again incurred on the
Damang pit cutback.
The eastern haul ramp in the Damang pit cutback slipped at the end of
January and is inaccessible. However, gold production and costs are
expected to remain at similar levels in the March quarter when
compared with the December quarter.
Australia
St Ives
December
2007
September
2007
Gold produced
- 000’ozs
110.0
102.4
Yield - heap leach
- g/t
0.7
0.5
- milling
- g/t
2.6
2.5
- combined
- g/t
1.8
1.8
Total cash costs
- A$/oz
584
650
- US$/oz
521
551
Gold produced for the quarter increased in line with previous guidance
from 102,400 ounces to 110,000 ounces. This was mainly due to a 6
per cent increase in tons processed, as the combined yield was
unchanged at 1.8 grams per ton.
Gold produced from the Lefroy mill increased from 92,100 ounces to
95,200 ounces. Tons milled were unchanged at 1.15 million tons.
Yield increased from 2.5 grams per ton to 2.6 grams per ton in the
quarter due to the higher grade underground ore and a reduction in
processing stockpiled, low grade material.
Heap leach production was 14,800 ounces this quarter, up 43 per cent
when compared with the September quarter’s 10,300 ounces. Tons
treated from heap leach increased from 612,000 tons to 708,200 tons
and recoveries increased from 59 per cent to 72 per cent with the
introduction of better leaching oxide material following commissioning
of the agglomeration drum in the previous quarter.
During the quarter 3.7 million bank cubic metres (BCMs) of ore and
waste, which includes waste classified as capital for accounting
purposes, were mined from the open pit operations, compared with 3.5
million BCMs in the previous quarter. Open pit operations produced
1.4 million tons of ore for the quarter, compared with 1.2 million tons
for the September quarter. The majority of ore was mined from the
Leviathan, North Revenge and Bahama pits. The open pit ore grade
decreased from 1.8 grams per ton in the September quarter to 1.7
grams per ton in the December quarter. The Leviathan pit intersected
large ore volumes at higher levels than planned resulting in increased
tonnages, and the Bahama pit achieved full production. The average
strip ratio including capital waste was 5.7 in the December quarter
compared with 6.4 in the September quarter.
Underground operations mined 254,000 tons of ore at 5.4 grams per
ton for the quarter, compared with 247,000 tons at 5.0 grams per ton in
the previous quarter. The majority of this increase was due to Argo
accessing the higher grade portion of the ore body, and Leviathan
mining high grade remnants from the East Repulse lode.
Operating costs, including gold-in-process movements, decreased
from A$69 million (R413 million) in the September quarter to A$65
million (R394 million) in the December quarter. This decrease was
mainly due to increased stockpiles at Bahama adding GIP to the
balance sheet, and a net decrease in maintenance costs, which offset
the increased third party royalty due to the higher gold price. Total
cash costs decreased from A$650 per ounce (US$551 per ounce) in
the September quarter to A$584 per ounce (US$521 per ounce) in the
December quarter.
Operating profit increased from A$14 million (R86 million) to A$32
million (R193 million) due to the increased gold production, lower costs
and increased gold price.
Capital expenditure increased, from A$25 million (R152 million) to
A$29m (R175 million) quarter on quarter. Mine development capital of
A$18 million (R110 million) included commencement of the second
underground portal and increased development activity at the Cave
Rocks underground mine, the continuation of development of the Argo
and Belleisle underground mines and increased waste mining at the
Leviathan pit. These increases were slightly offset by a decrease in
exploration expenditure.
Gold production and total cash costs for the March quarter are
expected to be similar to the December quarter. Development of the
GOLD FIELDS RESULTS Q2F2008
I 8
new underground mines at Cave Rocks and Belleisle remains a focus
to return production to around 120,000 ounces per quarter by mid
calendar 2008.
Agnew
December
2007
September
2007
Gold produced
- 000’ozs
49.2
51.0
Yield - g/t 4.9
4.7
Total cash costs
- A$/oz
470
507
- US$/oz
419
430
Gold production decreased 4 per cent from 51,000 ounces in the
September quarter to 49,200 ounces in the December quarter. This
was mainly due to a 6 per cent decrease in mill throughput from
334,000 tons to 313,000 tons. This was partially offset by an increase
in yield from 4.7 grams per ton to 4.9 grams per ton. The lower
processing throughput was due to a planned 3 day mill shut down in
December, electrical downtime caused by a severe storm and lower
throughput from treating more ore from Songvang which reduces
volumes through the plant due to the high level of silver.
Ore mined from underground decreased from 120,000 tons in the
September quarter to 89,000 tons in the December quarter.
Difficulties in opening up new stopes due to poor ground conditions at
Kim South, which effectively halved the output quarter on quarter from
90,000 tons to 45,000 tons was the main cause of this decrease. By
the end of the quarter these difficulties had largely been overcome and
stopes brought back into production. The shortfall from Kim South
was partially offset by higher production from Main Lode, which
increased from 30,000 tons in the September quarter to 36,000 tons in
the December quarter. Grade was unchanged at 9.1 grams per ton.
Operating costs, decreased from A$25 million (R149 million) in the
September quarter to A$18 million (R106 million) in the December
quarter mainly due to the completion of mining at Songvang and the
decreased volumes from underground. The increase in the gold-in-
process charge from A$3 million (R19 million) to A$14 million (R82
million) was due to an increase in processing ore from the Songvang
stockpile. Total cash costs decreased from A$507 per ounce (US$430
per ounce) to A$470 per ounce (US$419 per ounce) for the December
quarter due to the cessation of mining Songvang during the previous
quarter.
Operating profit decreased from A$14 million (R85 million) in the
September quarter to A$13 million (R76 million) predominantly due to
reduced production from the high grade Kim South section.
Capital expenditure increased from A$6 million (R38 million) in the
September quarter to A$9 million (R56 million) in the December
quarter. This increase was attributed to site power upgrade works,
increased underground capital development and additional
underground extensional exploration drilling.
Gold production for the March quarter is expected to be similar to the
December quarter. Total cash costs are expected to increase
significantly quarter on quarter on account of lower average grades
from the stockpiled Songvang ore.
Discontinued Operations
Venezuela
Choco 10
December
2007
September
2007
Gold produced
- 000’ozs
18.1
15.7
Yield - g/t 1.6
1.2
Total cash costs
- US$/oz
830
684
At Choco 10 results for the December quarter are up until the end of
November, the effective date of sale. Gold produced increased from
15,700 ounces to 18,100 ounces as a result of an increase in yield to
1.6 grams per ton, compared with 1.2 grams per ton in the September
quarter.
Operating costs including gold-in-process increased from R86 million
(US$12 million) to R114 million (US$17 million) and cash costs
increased from US$684 per ounce to US$830 per ounce.
Operating profit increased from R15 million (US$2 million) to R85
million (US$12 million) and capital expenditure amounted to R30
million (US$5 million) compared with R40 million (US$6 million) in the
September quarter.
Quarter ended 31 December 2007
compared with quarter ended
31 December 2006
Group attributable gold production decreased from 993,000 ounces for
the quarter ended December 2006 to 960,000 ounces in the
December 2007 quarter.
At the South African operations gold production increased from
654,000 to 657,000 ounces. Kloof’s production was similar at 231,000
ounces. Driefontein’s production decreased from 247,300 ounces to
239,600 ounces and Beatrix from 149,500 ounces to 118,900 ounces.
This shortfall was offset by the increase at South Deep from 26,900
ounces to 67,600 ounces as the December quarter 2006 only includes
one month’s production as control was acquired on 1 December 2006.
At the international operations total gold production decreased from
408,000 ounces in December quarter 2006 to 362,000 ounces in
December quarter 2007. In Ghana, Tarkwa’s gold production
decreased from 178,800 ounces to 158,300 due to a reduction in high
grade ore tonnages. At Damang, gold production decreased from
51,600 ounces to 44,200 ounces due to an increase in ore from the
low grade stockpile due to a reduction in available high grade ore. In
Australia, St Ives’ gold production decreased from 124,600 ounces to
110,000 ounces due to lower grades partly offset by increased
tonnages. At Agnew, gold produced decreased from 53,000 ounces to
49,200 ounces due to lower volumes mined from the high grade Kim
mine.
Revenue increased by 14 per cent in rand terms from R4,753 million
(US$644 million) to R5,430 million (US$801 million). The higher
average gold price of R170,488 per kilogram (US$784 per ounce)
compared with R144,519 per kilogram (US$609 per ounce) achieved
in 2006 more than offset the lower production. The rand/US dollar
strengthened 8 per cent from R/US$7.38 to R/US$6.76 quarter on
quarter.
Operating costs, including gold-in-process movements, increased from
R2,807 million (US$380 million) to R3,392 million (US$501 million), an
increase of R585 million (US$121 million) or 21 per cent. This
increase was mainly due to the acquisition of control of South Deep on
1 December 2006, which added R229 million (US$34 million) to costs
in the December quarter 2007. Excluding South Deep the increase
was 13 per cent. The majority of the balance of the increase was due
to above inflation wage increases in South Africa, significant price
increases of important inputs - namely fuel, steel and cyanide to
mention but a few at all the operations, increased power costs in
Ghana and increased maintenance costs on the owner mining fleet at
Tarkwa. Costs were also higher as a result of the increased royalty at
St Ives. Total cash costs for the Group in rand terms, increased 22 per
cent from R83,334 per kilogram (US$351 per ounce) to R101,532 per
kilogram (US$467 per ounce).
At the South African operations, operating costs increased by 23 per
cent from R1,773 million in the quarter ended December 2006 to
R2,174 million in the quarter ended December 2007. The increase
excluding South Deep was 10 per cent, and was due to the above
inflation wage increases effective from 1 July 2007, and the increase in
certain input costs such as steel and food, partially offset by the cost
saving initiatives implemented over the year. Total cash costs
increased 21 per cent from R83,952 per kilogram to R101,170 per
kilogram due to the inclusion of South Deep, which averaged
R147,719 per kilogram in the December quarter 2007, as well as the
cost increases and the lower production at the other South African
operations. Excluding South Deep, total cash costs increased from
9
I GOLD FIELDS RESULTS Q2F2008
R82,213 per kilogram to R95,826 per kilogram an increase of 17 per
cent.
At the international operations total cash costs increased by 30 per
cent from US$347 per ounce to US$470 per ounce, mainly due to
higher power costs in Ghana due to tariff increases, increased
maintenance costs of the mining fleet at Tarkwa, and the combined
effect of higher stripping ratios and lower grades, together with the
increased cost of inputs driven by the commodities boom. This was
exacerbated by the 13 per cent decrease in gold output from the
international operations.
Operating profit increased from R1,946 million (US$264 million) to
R2,037 million (US$300 million), with the benefit of the higher gold
price offset by the lower production and the increase in costs.
After accounting for taxation, sundry items and the gain on the sale of
Essakane and the Venezuela assets in the December 2007 quarter,
the net earnings increased from R767 million (US$104 million) in the
December 2006 quarter to R1,938 million (US$281 million) for the
December quarter 2007.
Earnings excluding gains and losses on foreign exchange, financial
instruments, exceptional items and discontinued operations increased
from R579 million (US$78 million) in December quarter 2006 to R603
million (US$88 million) in the December quarter 2007.
Capital and development projects
Cerro Corona
During the quarter, the project, regrettably, sustained a fatality on 21
December when a contractor attempted to dislodge a bound cable
being used to pull conductor wiring between towers on the 220kV
transmission line between Cajamarca Norte and Cerro Corona
substations. Until that date, the project had expended 11.9 million
man-hours since October 2005 with no Lost Time Injuries (LTI’s).
Environmental permitting activities continued during the period
including EIA submittals for concentrate transport at the Port of
Salaverry and a general revision to account for engineering and field
changes. Processes to approve these permits are in hand to avoid
this affecting project start up.
Community relations remained relatively calm and stable; however,
on-going monitoring of the area of influence as well as external areas
due to increasing national protests against mining remains a priority.
As previously advised the greatest community risk will be encountered
as the level of employment in construction activities declines when
construction activities ramp down through the middle of this year.
Specific attention has been given to preparation and execution of a
strategic plan to mitigate impacts for the decline of labour opportunities
as the project moves into operation. Although communities
understand this transition, the goal is to develop other livelihoods
based upon GFLC’s economic development programmes. At the end
of the quarter, following extensive negotiations with a local community,
an alternate access road around the project area was opened allowing
the closure of an existing community foot path thereby securing the
entire project site perimeter and allowing activities in the tailings
management facility (TMF) to be undertaken more safely and with
greater efficiency.
Mining activities remain focused on generating construction materials
for various site structures, in particular the tailing dam, haul roads and
run of mine stockpile. The mining fleet continued working in three rock
quarries within the project boundary as well as the Cerro Corona
surface mine. A total of 3.40 million tons were mined in these three
quarries during the December quarter while 1.09 million tons were
excavated from the Cerro Corona surface mine in the same period (69
per cent overburden, 21 per cent oxide ore, and 10 per cent sulphide
ore). Unit mining cost performance, at US$1.72 per ton, was in line
with expectations. Mining activities are not on the project critical path.
During December 2007, the Company announced an increase in the
forecast construction capital cost to US$421 million and extension of
the completion date to the middle of the fourth quarter of financial
2008. The delay and cost increase was attributed primarily to
complications in the TMF embankment construction (generation and
placement of construction materials) and poor progress on final
erection of the concentrator.
Subsequent to that announcement, and despite the impact of the year-
end holidays, good progress has been made in resolving these issues.
On the construction front, certain construction contracts and work
programs were restructured and re-resourced. So far progress against
this program has been satisfactory. This program delivers mechanical,
electrical and instrumentation completion of the plant in April, allowing
in excess of a month for cold commissioning activities before the
expected hot commissioning with the introduction of ore into the
process plant in May. At present the area of greatest focus is
completion of the flotation circuit, where considerable resources
are being deployed.
Beyond this, several major milestones were achieved during the
quarter, primarily completion of structural concrete and steel erection,
initiation of process piping, completion of process reagent and water
tankage as well as concentrate handling facilities. Major electrical
equipment was set and termination of cabling runs begun. Several
areas were subjected to punch listing in anticipation of mechanical
turnover, to commence cold commissioning in certain areas. Tower
erection for the 220kV power line was completed while conductor was
pulled over half the line length. Work in two main substations was also
significantly advanced. Engineering is now complete, save for field
changes. Procurement is complete and expediting of a short list of
equipment is underway. No items have been identified that would
affect start-up at this stage.
In respect of construction of the TMF embankment, good progress was
made in resolving the difficulties in mining and production (through
crushing and screening) of acceptable quality construction materials
for the two filters zones. Progress has been sufficient that stockpiles of
these materials are now being generated and the critical path on this
construction, and the limit to rate of vertical rise of this embankment,
has now moved to placement of the clay in the impermeable zone in
the embankment. With new sources of clay opened up during the
quarter, the critical step is now placement of this material to the strict
construction standards. Current placement rates of this have reached
4,200 BCMs per week, with some 57,000 BCMs still required to
complete the first stage of this embankment, indicating a further 14
weeks of construction. However rates to date have been limited by
rain but placement activities and supervision are being modified to
reduce the impact of this given a further 3 to 4 months of the rainy
season are expected.
In respect of the overall schedule, the completion of the process plant
remains the critical path, but remains on track to achieve the plant start
up in May 2008. While construction activities of the TMF embankment
to reach a height, to impound 500,000 cubic metres of water is
essential before the end of the rainy season, this aspect is not
expected to affect start up, but is required to support the operation
through the dry season from May to October. The Peruvian power
regulator has imposed a short term limit to power draw by this project
to 3Mw. The restriction is planned to be lifted in the March quarter and
is not expected to affect start-up.
Capital expenditure on construction activities in the quarter was US$68
million. Total cumulative capital expenditure through the end of the
quarter reached $330 million and cumulative construction
commitments reached US$366 million. Capital construction cost at
completion is still forecast at US$421 million.
In addition to construction completion and commissioning, a key
priority for the March quarter is to ensure the transition from the project
to operations stage. The process has already been started, with a
dedicated team and a detailed plan already under implementation.
Exploration and corporate development
Gold Fields completed the sale of its 60 per cent stake in the
Essakane project in Burkina Faso. Refer the Corporate section below
for more detail.
At the 25 per cent owned Sankarani project in south-western Mali,
operated by partner Glencor Mining plc (AIM: “GEX”), an exploration
programme including litho-geochemical sampling by means of air core
GOLD FIELDS RESULTS Q2F2008
I 10
drilling, an airborne geophysical survey and over 19,000 metres of
RAB drilling has been planned which, upon completion, should bring
Gold Fields’ share in the project to 51 per cent. At the 80 per cent
owned Kisenge project in the southern DRC, the third phase of drilling
was initiated at the Kajimba, Mpokoto, Lungenda and Katompe
targets. A ground magnetic and induced polarisation survey was
completed at Kajimba and Mpokoto, with additional geophysical work
performed on other parts of the tenements.
In Kyrgyzstan, where Gold Fields has an option to joint venture the
Talas project via its equity placement in Lero Gold Corp (TSX-V:
“LER”), 5,000 metres of drilling and 90 kilometres of induced
polarisation geophysics at the Taldybulak Central, Tokhtanysai and
Korgontash Cu-Au porphyry and skarn targets were completed. In
Slovakia where Gold Fields has a right of first refusal to joint venture
the Biely Vrch project through our equity holdings in EMED Mining
Public Limited (AIM: “EMED”), in-fill drilling was completed on the main
prospect along with scout drilling on the Kralova prospect.
At the Central Victoria project in Australia, the aircore and diamond
drilling programme was completed and results are currently being
compiled and interpreted. At the Gobondery joint venture in New
South Wales where Gold Fields is earning an 80 per cent stake, two
“blind” porphyry targets were identified and diamond drilling
commenced to assess their potential. In South Australia at the
Delamarian project, an exploration joint venture agreement was
executed with Australian Zircon NL (ASX: “AZC”) to farm-in to 80 per
cent of the gold rights on the Pine Valley licenses which lie adjacent to
our tenements. Aircore drilling continued on Gold Fields ground
outside the joint venture license holdings for the quarter. In Central
Queensland at the Mt Carton joint venture with Conquest Mining
Limited (ASX: “CQT”), where Gold Fields is earning a 51 per cent
stake in eight exploration tenements surrounding Conquest’s Silver Hill
discovery, diamond drilling has commenced on ground to the
southeast and east of Silver Hill. Geophysical data, soil geochemistry
samples and geological mapping was collected on surrounding parts
of the joint venture ground and are ongoing.
In Venezuela, the exploration holdings in the El Callao District were
sold along with the Choco 10 mine to Rusoro Mining Limited.
At the Dominican Republic joint venture where Gold Fields is earning a
60 per cent initial interest in a portfolio of properties with partner
GoldQuest Mining Corp (TSX-V: “GQC”), scout drilling was completed
at the Cerro Dorado target and is currently in progress at the Piedra
Iman target. In Peru at the Consolidada de Hualgayoc joint venture
with Compania de Minas Buenaventura SA (NYSE: “BVN”),
underground drilling was completed at Cerro Jesus. In Central Chile
at the joint venture with a private Chilean company (Gold Fields
earning 70 per cent), field work commenced to assess several
selected high sulphidation epithermal and porphyry targets.
In Australia, near-mine extensional drilling and brownfields exploration
at Agnew and St Ives continued with promising drilling results being
returned. Good progress was also made with the new Athena and
Nelson’s Fleet discoveries at St Ives. In Ghana, the main focus has
been on drilling for mineral resource conversion at Rex Main and
Bonsa North located on the Damang Tenements, and brownfields
exploration at Rex South and four other near-site prospects.
Corporate
Award in Socially Responsible Investment Index for 2007
On 27 November 2007 the JSE’s Socially Responsible Investment
(SRI) Index, which assesses the environmental, social and economic
sustainability practices and corporate governance of listed companies,
announced Gold Fields as one of the Best Performers of 2007.
Gold Fields is committed to the responsible stewardship of natural
resources and the ecological environment for present and future
generations, and aims to continually implement a comprehensive
strategy to maximise positive environmental or socio-economic
outcomes to ensure a long-term future.
Sale of Essakane project
On 27 November 2007 Gold Fields sold its 60 per cent stake in the
Essakane project located in Burkina Faso, West Africa, to its partner in
the project, Orezone Resources Inc. (“Orezone”) (TSX:OZN).
Orezone paid Gold Fields US$150 million in cash and issued
41,666,667 common shares having an aggregate subscription price of
US$49 million to Gold Fields wholly-owned subsidiary Gold Fields
Essakane (BVI) Limited. Following the acquisition, Gold Fields owns
41,666,667 common shares of Orezone, representing 12.2 per cent of
Orezone’s issued and outstanding common shares. Gold Fields
acquired the common shares of Orezone as part of the proceeds of
the sale of the Essakane project and has no present intention of
acquiring ownership of, or control over, additional securities of
Orezone.
Sale of Venezuelan assets
On 3 December 2007, the transaction announced on 12 October 2007,
whereby Gold Fields has disposed of all its assets in Venezuela to
Rusoro Mining Ltd. (Rusoro) (TSXV: RML) was successfully
completed.
Gold Fields received US$180 million in cash and 140 million newly-
issued Rusoro shares, which represent approximately 37 per cent of
the outstanding shares of Rusoro.
Preference share funding
After the December cost close Gold Fields secured R1.2 billion 3-year
and one-day, non-convertible, redeemable, preference share funding
from FirstRand Bank Limited (acting through its Rand Merchant Bank
division) at a maximum rate of 61 per cent of prime.
Final accounting for South Deep acquisition
The purchase price allocation of the South Deep acquisition has been
finalised in accordance with IFRS 3. The provisional goodwill
allocation, as disclosed in the annual report of R4.4 billion is
unchanged.
Dividend
Given the current uncertainty regarding electricity supply and the
potential impact on production, the Gold Fields Board felt that,
notwithstanding the Company’s dividend policy, it would not be
prudent to declare an interim dividend.
Outlook
At the South African operations, subject to the availability of power,
which at the time of writing is 80 per cent, production is likely to be
about 20 to 25 per cent lower than the December quarter. This is due
to various factors, the slow start up after the Chistmas break, the week
long stoppage due to the power shortage in January, and production
losses across all the South African operations due to continued power
shortages. At the international operations production is forecast to
increase marginally and costs will be slightly higher due to increases in
power and diesel input costs.
Basis of accounting
The unaudited results for the quarter have been prepared on the
International Financial Reporting Standards (IFRS) basis. The
detailed financial, operational and development results for the
December 2007 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 except for the adoption of applicable revised
and/or new standards issued by the International Accounting
Standards Board.
I.D. Cockerill
Chief Executive Officer
31 January 2008
11 I GOLD FIELDS RESULTS Q2F2008
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand
Quarter
Six months to
December
2007
September
2007
December
2006
December
2007
December
2006
Revenue
5,429.7
5,018.2 4,753.1 10,447.9
9,411.7
Operating costs, net
3,392.4
3,301.9 2,806.9 6,694.3
5,486.8
- Operating costs
3,341.2
3,291.9 2,896.2 6,633.1
5,590.3
- Gold inventory change
51.2
10.0 (89.3) 61.2
(103.5)
Operating profit
2,037.3
1,716.3 1,946.2 3,753.6
3,924.9
Amortisation and depreciation
762.7
771.1 726.1
1,533.8
1,389.7
Net operating profit
1,274.6
945.2 1,220.1 2,219.8
2,535.2
Net interest paid
(92.2)
(95.1) (36.5) (187.3)
(28.8)
(Loss)/gain on foreign exchange
(5.1)
(12.3) 263.6 (17.4)
260.7
(Loss)/gain on financial instruments
(187.6)
8.9 (19.2) (178.7)
(28.6)
Other
(10.2)
(11.3) (55.7) (21.5)
(81.6)
Exploration
(78.7)
(84.6) (59.7) (163.3)
(124.4)
Profit before tax and exceptional items
900.8
750.8 1,312.6 1,651.6
2,532.5
Exceptional gain
1,416.6
29.3 7.8
1,445.9
16.5
Profit before taxation
2,317.4
780.1 1,320.4 3,097.5
2,549.0
Mining and income taxation
418.4
289.1 464.6 707.5
916.1
- Normal taxation
284.5
223.8 247.4 508.3
485.0
- Deferred taxation
133.9
65.3 217.2 199.2
431.1
Net profit from continued operations
1,899.0
491.0 855.8
2,390.0
1,632.9
Income from discontinued operations
45.2
(8.2) (14.9) 37.0
(31.5)
Profit on sale of Venezuelan assets
74.2
- -
74.2
-
Net profit
2,018.4
482.8 840.9
2,501.2
1,601.4
Attributable to:
- Ordinary shareholders
1,938.0
428.6 766.8
2,366.6
1,464.6
- Minority shareholders
80.4
54.2 74.1 134.6
136.8
Exceptional items:
Profit on sale of investments
1,414.7
- 4.7
1,414.7
5.1
Profit on sale of assets
1.9
29.3 2.8 31.2
11.1
Impairment of assets
-
- 0.3 -
0.3
Total exceptional items
1,416.6
29.3 7.8
1,445.9
16.5
Taxation
(8.3)
(11.2) (2.7) (19.5)
(5.8)
Net exceptional items after tax and minorities
1,408.3
18.1 5.1
1,426.4
10.7
Net earnings
1,938.0
428.6 766.8
2,366.6
1,464.6
Net earnings per share (cents)
297
66 148 363
289
Diluted earnings per share (cents)
277
62 147 339
288
Headline earnings
455.5
410.5 761.7 866.0
1,453.9
Headline earnings per share (cents)
70
63 147 133
287
Net earnings excluding gains and losses on foreign exchange,
financial instruments, exceptional items and discontinued operations
602.9
407.7 578.5
1,010.6
1,296.8
Net earnings per share excluding gains and losses on foreign
exchange, financial instruments, exceptional items and discontinued
operations (cents)
93
62 112 155
256
Gold sold – managed
kg
31,848
32,306 32,889 64,154
65,668
Gold price received
R/kg
170,488
155,333 144,519 162,857
143,322
Total cash costs
R/kg
101,532
98,465 83,334 99,988
81,400
GOLD FIELDS RESULTS Q2F2008 I 12
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
United States Dollars
Quarter
Six months to
December
2007
September
2007
December
2006
December
2007
December
2006
Revenue
800.8
706.8 644.1
1,507.6
1,300.0
Operating costs, net
500.9
465.1 380.3 966.0
757.8
- Operating costs
493.5
463.7 392.4 957.2
772.1
- Gold inventory change
7.4
1.4 (12.1)
8.8
(14.3)
Operating profit
299.9
241.7 263.8 541.6
542.2
Amortisation and depreciation
112.7
108.6 98.4 221.3
191.9
Net operating profit
187.2
133.1 165.4 320.3
350.3
Net interest paid
(13.6)
(13.4) (4.9) (27.0)
(4.0)
(Loss)/gain on foreign exchange
(0.8)
(1.7) 35.7 (2.5)
36.0
(Loss)/gain on financial instruments
(27.1)
1.3 (2.6) (25.8)
(4.0)
Other
(1.5)
(1.6) (7.5) (3.1)
(11.3)
Exploration
(11.7)
(11.9) (8.1) (23.6)
(17.2)
Profit before tax and exceptional items
132.5
105.8 178.0 238.3
349.8
Exceptional gain
204.5
4.1 1.1
208.6
2.3
Profit before taxation
337.0
109.9 179.1 446.9
352.1
Mining and income taxation
61.3
40.7 62.9 102.0
126.5
- Normal taxation
41.8
31.5 33.5 73.3
67.0
- Deferred taxation
19.5
9.2 29.4 28.7
59.5
Net profit from continued operations
275.7
69.2 116.2 344.9 225.6
Income from discontinued operations
6.5
(1.2) (2.0) 5.3
(4.4)
Profit on sale of Venezuelan assets
10.7
- -
10.7
-
Net profit
292.9
68.0 114.2 360.9
221.2
Attributable to:
- Ordinary shareholders
281.1
60.4 104.2 341.5
202.3
- Minority shareholders
11.8
7.6 10.0 19.4
18.9
Exceptional items:
Profit on sale of investments
204.1
- 0.6
204.1
0.7
Profit on sale of assets
0.4
4.1 0.4 4.5
1.5
Impairment of assets
-
- 0.1 -
0.1
Total exceptional items
204.5
4.1 1.1
208.6
2.3
Taxation
(1.2)
(1.6) (0.4) (2.8)
(0.8)
Net exceptional items after tax and minorities
203.3
2.5 0.7
205.8
1.5
Net earnings
281.1
60.4 104.2 341.5
202.3
Net earnings per share (cents)
43
9 20 52
40
Diluted earnings per share (cents)
40
9 20 49
38
Headline earnings
67.1
57.9 103.5 125.0
200.8
Headline earnings per share (cents)
10
9 20 19
40
Net earnings excluding gains and losses on foreign exchange,
financial instruments, exceptional items and discontinued operations
88.4
57.4 78.4 145.8
179.1
Net earnings per share excluding gains and losses on foreign
exchange, financial instruments, exceptional items and discontinued
operations (cents)
13
9 16 22
35
South African rand/United States dollar conversion rate
6.76
7.10 7.38 6.93
7.24
South African rand/Australian dollar conversion rate
6.03
6.02 5.66 6.03
5.52
Gold sold – managed
ozs (000)
1,024
1,039 1,057 2,063
2,111
Gold price received
$/oz
784
680 609 731
616
Total cash costs
$/oz
467
431 351 449
350
13 I GOLD FIELDS RESULTS Q2F2008
Balance sheet
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand
United States Dollars
December
2007
June
2007
December
2007
June
2007
Property, plant and equipment
39,686.7
37,312.8
5,669.5
5,218.6
Goodwill
4,458.9
4,458.9
637.0
623.6
Non-current assets
656.7
627.7
93.8
87.8
Investments
4,195.3
2,272.4
599.3
317.8
Discontinued operations
-
3,352.3
- 468.9
Current assets
4,768.1
5,877.0
681.2
822.0
- Other current assets
3,447.5
3,566.9
492.5
498.9
- Cash and deposits
1,320.6
2,310.1
188.7
323.1
Total assets
53,765.7
53,901.1
7,680.8
7,538.7
Shareholders’ equity
37,884.6
37,106.3
5,412.1
5,189.7
Deferred taxation
4,835.2
4,651.4
690.7
650.5
Long-term loans
6,037.5
6,170.5
862.5
863.0
Environmental rehabilitation provisions
1,418.7
1,380.5
202.7
193.1
Post-retirement health care provisions
20.9
21.0
3.0
2.9
Current liabilities
3,568.8
4,571.4
509.8
639.5
- Other current liabilities
3,194.1
3,852.8
456.3
539.0
- Current portion of long-term loans
374.7
718.6
53.5
100.5
Total equity and liabilities
53,765.7
53,901.1
7,680.8
7,538.7
South African rand/US dollar conversion rate
7.00
7.15
South African rand/Australian dollar conversion rate
6.09
6.06
Condensed changes in equity
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand
United States Dollars
December
2007
December
2006
December
2007
December
2006
Balance at the beginning of the financial year
37,106.3
19,851.5
5,189.7
2,671.8
Issue of share capital
0.2
28.4
- 4.1
Increase in share premium
20.8
7,164.5
3.0
1,026.4
Mark to market valuation of listed investments
(30.5)
156.2
(4.4)
22.4
Dividends paid
(619.9)
(545.4)
(89.4)
(78.1)
Increase in share-based payment reserve
50.6
38.1
7.3
5.5
Profit attributable to ordinary shareholders
2,366.6
1,464.6
341.5
202.3
Profit attributable to minority shareholders
134.6
136.8
19.4
18.9
Decrease in minority interests
(457.6)
(121.4)
(66.0)
(13.0)
Loss on transacting with minorities
(74.0)
-
(10.7)
-
Currency translation adjustment and other
(158.4)
(409.0)
87.2
117.4
Reserves released on sale of Venezuelan assets
(454.1)
-
(65.5)
-
Balance as at the end of December
37,884.6
27,764.3
5,412.1
3,977.7
Reconciliation of headline earnings with net earnings
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand
United States Dollars
December
2007
September
2007
December
2006
December
2007
September
2007
December
2006
Net earnings
1,938.0
428.6 766.8
281.1
60.4 104.2
Profit on sale of investments
(1,414.7)
- (4.7)
(204.1)
- (0.6)
Loss on sale of assets
(1.9)
(29.3) (2.8)
(0.4)
(4.1) (0.4)
Taxation effect of profit on sale of assets
8.3
11.2 2.7
1.2
1.6 0.4
Profit on sale of Venezuelan assets
(74.2)
- -
(10.7)
- -
Other after tax adjustments
-
- (0.3) -
- (0.1)
Headline earnings
455.5
410.5 761.7 67.1
57.9 103.5
Headline earnings per share – cents
70
63 147 10
9 20
Based on headline earnings as given above divided by
652,412,191 for December 2007 (September 2007- 652,219,625
and December 2006 – 517,356,586) being the weighted average
number of ordinary shares in issue.
GOLD FIELDS RESULTS Q2F2008 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
2007
September
2007
December
2006
December
2007
December
2006
Cash flows from operating activities
1,147.8
985.3 1,381.2 2,133.1
2,990.5
Profit before tax and exceptional items
900.8
750.8 1,312.6 1,651.6
2,532.5
Exceptional items
1,416.6
29.3 7.8
1,445.9
16.5
Amortisation and depreciation
762.7
771.1 726.1
1,533.8
1,389.7
Change in working capital
(570.6)
(223.8) (320.9) (794.4)
(311.0)
Taxation paid
(129.7)
(361.1) (85.6)
(490.8)
(400.4)
Other non-cash items
(1,352.1)
12.7 (278.5)
(1,339.4)
(269.7)
Discontinued operations
120.1
6.3 19.7
126.4
32.9
Dividends paid
-
(619.9) -
(619.9)
(555.9)
Ordinary shareholders
-
(619.9) -
(619.9)
(545.4)
Minority shareholders in subsidiaries
-
- - -
(10.5)
Cash flows from investing activities
(222.2)
(1,932.8) (10,135.8) (2,155.0)
(11,443.0)
Capital expenditure – additions
(2,475.5)
(1,927.9) (1,338.0) (4,403.4)
(2,510.0)
Capital expenditure – proceeds on disposal
1.8
30.8 2.9
32.6
14.0
Sale/(purchase) of subsidiaries
1,042.1
- (8,676.8) 1,042.1
(8,676.8)
Purchase of investments
(9.6)
(2.4) (77.5) (12.0)
(198.9)
Proceeds on the disposal of investments
32.5
- 6.9
32.5
9.1
Environmental and post-retirement health care payments
(6.5)
(4.9) (14.7) (11.4)
(23.7)
Discontinued operations
1,193.0
(28.4) (38.6)
1,164.6
(56.7)
Cash flows from financing activities
(1,068.5)
744.2 9,016.4 (324.3)
8,847.5
Loans received
727.4
908.6 9,057.9 1,636.0
9,057.9
Loans repaid
(1,808.2)
(173.0) -
(1,981.2)
(155.6)
Minority shareholders loans repaid
-
- (44.6)
-
(90.1)
Shares issued
12.3
8.6 3.1
20.9
35.3
Net cash outflow
(142.9)
(823.2) 261.8
(966.1)
(160.9)
Translation adjustment
(6.4)
(17.0) (73.2) (23.4)
(44.1)
Cash at beginning of period
1,469.9
2,310.1 1,223.9 2,310.1
1,617.5
Cash at end of period
1,320.6
1,469.9 1,412.5 1,320.6
1,412.5
United States Dollars
Quarter
Six months to
December
2007
September
2007
December
2006
December
2007
December
2006
Cash flows from operating activities
175.1
131.1 189.8 306.2
416.5
Profit before tax and exceptional items
132.5
105.8 176.6 238.3
347.6
Exceptional items
204.5
4.1 1.1
208.6
2.3
Amortisation and depreciation
112.7
108.6 99.1
221.3
193.3
Change in working capital
(83.1)
(31.5) (43.5)
(114.6)
(43.0)
Taxation paid
(13.7)
(58.6) (11.6) (72.3)
(51.7)
Other non-cash items
(195.1)
1.8 (37.7)
(193.3)
(37.3)
Discontinued operations
17.3
0.9 5.8
18.2
5.3
Dividends paid
-
(88.6) -
(88.6)
(78.3)
Ordinary shareholders
-
(88.6) -
(88.6)
(76.8)
Minority shareholders in subsidiaries
-
- - -
(1.5)
Cash flows from investing activities
(38.6)
(272.2) (1,396.4) (310.8)
(1,580.5)
Capital expenditure – additions
(363.9)
(271.5) (181.3) (635.4)
(346.7)
Capital expenditure – proceeds on disposal
0.4
4.3 0.4 4.7
1.9
Sale/(purchase) of subsidiaries
150.4
- (1,198.5)
150.4
(1,198.5)
Purchase of investments
(1.4)
(0.3) (10.5) (1.7)
(27.5)
Proceeds on the disposal of investments
4.7
- 0.9 4.7
1.3
Environmental and post-retirement health care payments
(0.9)
(0.7) (2.0) (1.6)
(3.3)
Discontinued operations
172.1
(4.0) (5.4) 168.1
(7.7)
Cash flows from financing activities
(151.6)
104.8 1,261.4 (46.8)
1,237.6
Loans received
108.1
128.0 1,265.7 236.1
1,265.7
Loans repaid
(261.5)
(24.4) 0.4
(285.9)
(21.5)
Minority shareholders loans repaid
-
- (5.1)
-
(11.5)
Shares issued
1.8
1.2 0.4 3.0
4.9
Net cash outflow
(15.1)
(124.9) 54.8
(140.0)
(4.7)
Translation adjustment
(6.2)
11.8 (13.4)
5.6
(10.6)
Cash at beginning of period
210.0
323.1 161.0 323.1
217.7
Cash at end of period
188.7
210.0 202.4 188.7
202.4
15 I GOLD FIELDS RESULTS Q2F2008
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.
Position at end of December 2007
US Dollars / Rand forward purchases
As a result of the draw down under a bridge loan facility to settle the close-out of the Western Areas gold derivative structure, US dollars/rand forward
cover was purchased during the March quarter for the amount of US$550.8 million for settlement on 6 August 2007. On 6 August 2007, this US
dollars/rand forward cover was extended to 6 November 2007.
On 6 November 2007 the forward cover was extended to 6 December 2007 at an average rate of R6.6315, based on a spot of R6.6000. On 6 December
2007 a partial repayment of US$60.8 million was made against the loan and subsequently the balance of US$490 million forward cover was extended to
6 March 2008 at a rate of R6.9118, based on a spot rate of R6.8000. For accounting purposes, this forward cover has been designated as a hedging
instrument. The forward cover points have been accounted for as part of interest.
Year ended 30 June
2008
Forward purchases:
Amount (US dollars)
- 000’s
490,000
Average rate
- ZAR/US$
6.9118
At the end of December 2007 the mark to market value of the US$490.0 million forward cover was positive by R86.7 million (US$12.4 million). The
quarter on quarter mark to market movement was positive R68.5 million of which R11.7 million was offset against the R11.7 million foreign exchange
loss on the revaluation of the underlying loan being hedged. The balance of R56.8 million represents the forward cover cost which has been included in
interest paid in the income statement.
On 27 July 2007 US dollars/ rand forward cover of US$40 million was purchased to hedge future investments in Orogen, a 100% owned subsidiary, with
maturity on 30 October 2007. On 30 October 2007 the forward cover was extended to 30 November 2007 at a rate of R6.5399, based on a spot rate of
R6.5091. On 30 November 2007 the forward cover was extended to 31 January 2008 at a rate of R7.0743, based on a spot of R7.0000. For accounting
purposes this forward cover has been designated as a hedging instrument and the valuation thereof is included in shareholder equity.
Year ended 30 June
2008
Forward purchases:
Amount (US dollars)
- 000’s
40,000
Average rate
- ZAR/US$
7.0743
At the end of December 2007 the mark to market value of the US$40 million was negative by R1.1 million (US$0.2 million).
On 4 October 2007 US dollars/ rand forward cover of US$50 million was purchased to hedge future investments in Orogen, a 100% owned subsidiary.
The forward cover rate is R6.9949, based on a spot rate of R6.9474, with maturity on 21 November 2007. On 21 November 2007 the forward cover was
extended to 22 January 2008 at a rate of R6.7900, based on a spot rate of R6.7200. For accounting purposes this forward cover has been designated
as a hedging instrument and the valuation thereof is included in shareholder equity.
Year ended 30 June
2008
Forward purchases:
Amount (US dollars)
- 000’s
50,000
Average rate
- ZAR/US$
6.7900
At the end of December 2007 the mark to market value of the US$50 million was negative by R12.7 million (US$1.8 million).
Diesel Hedge
On 28 June 2007, Gold Fields Ghana Holdings (BVI) Ltd purchased a three month Asian style option in respect of 15 million litres of diesel, starting 1
July 2007. The call option resulted in a premium of US$0.3 million, paid upfront, at a strike rate of US$0.5572 per litre. The mark to market value at the
end of September 2007 was positive by US$0.1 million. On 20 August 2007, Gold Fields Ghana Holdings (BVI) Ltd purchased a further three month
Asian style option in respect of 15 million litres of diesel, starting 1 October 2007. The call option resulted in a premium of US$0.4 million, paid upfront,
at a strike rate of US$0.5572 per litre. The mark to market value at the end of December 2007 was positive by US$0.6million.
Amended Mvela Subscription and Exchange Agreement Election
Gold Fields, Mvela Gold, Mvela Resources and GFIMSA entered into a Subscription and Exchange Agreement on 17 November 2004 to provide that
Mvela Resources may acquire a minimum of 45,000,000 and a maximum of 55,000,000 Gold Fields shares should it elect to exchange its equity interest
in GFIMSA for Gold Fields’ shares. The mark to market valuation of this floor and cap derivative was a negative of R135 million at the end of the
quarter. (September quarter was R32 million positive).

GOLD FIELDS RESULTS Q2F2008 I 16
Total cash costs
Gold Industry Standards Basis
Figures are in millions unless otherwise stated
Total Mine
Operations
South African Operations
International Operations
Discontinued
Operations
##
Total Driefontein
Kloof Beatrix

South
Deep

Total
Ghana Australia
#
Venezuela
Tarkwa
Damang
St Ives
Agnew
Choco 10
Operating costs
(1)
December
2007
3,341.2 2,173.5
744.2
688.7
420.2
320.4
1,167.7
465.8
200.9 394.6 106.4
92.0
September
2007 3,291.9 2,114.0
723.5
660.6
415.5
314.4
1,177.9
454.2
171.8 402.5 149.4
99.3
Financial year to date
6,633.1 4,287.5
1,467.7 1,349.3
835.7
634.8
2,345.6
920.0
372.7 797.1 255.8
191.3
Gold-in-process and
December 2007
5.7
-
-
-
-
-
5.7
(9.4)
(17.6) 0.3
32.4
22.1
inventory change*
September 2007
(3.3)
-
-
-
-
-
(3.3)
(2.1)
(16.6) 8.1 7.3
(13.5)
Financial year to date
2.4
-
-
-
-
-
2.4
(11.5)
(34.2) 8.4
39.7
8.6
Less:
December 2007
14.8
10.7
4.4
3.3
2.3
0.7
4.1
1.1
- 2.4 0.6
-
Rehabilitation costs
September 2007
14.5
10.5
4.4
3.3
2.1
0.7
4.0
1.2
- 2.2 0.6
-
Financial year to date
29.3
21.2
8.8
6.6
4.4
1.4
8.1
2.3
- 4.6 1.2
-
Production taxes
December 2007
10.4
10.4
4.2
2.7
2.1
1.4
-
-
-
-
-
-
September
2007
9.0
9.0
2.9
2.7
1.9
1.5
-
-
-
-
-
-
Financial year to date
19.4
19.4
7.1
5.4
4.0
2.9
-
-
-
-
-
-
General and admin
December 2007
144.3
95.7
36.5
31.9
18.4
8.9
48.6
26.7
3.8 13.3 4.8
9.2
September
2007
130.2
83.2
30.3
25.9
19.0
8.0
47.0
22.6
4.3 14.6 5.5
20.8
Financial year to date
274.5 178.9
66.8
57.8
37.4
16.9
95.6
49.3
8.1 27.9 10.3
30.0
Exploration costs
December 2007
9.4
-
-
-
-
-
9.4
2.0 6.8 0.6
-
September 2007
9.1
-
-
-
-
-
9.1
-
2.8 5.6 0.7
-
Financial year to date
18.5
-
-
-
-
-
18.5
4.8 12.4 1.3
-
Cash operating costs
December 2007
3,168.0 2,056.7
699.1
650.8
397.4
309.4
1,111.3
428.6
177.5 372.4 132.8
104.9
September
2007 3,125.8 2,011.3
685.9
628.7
392.5
304.2
1,114.5
428.3
148.1 388.2 149.9
65.0
Financial year to date
6,293.8 4,068.0
1,385.0 1,279.5
789.9
613.9
2,225.8
856.9
325.6 760.6 282.7
169.9
Plus:
December 2007
10.4
10.4
4.2
2.7
2.1
1.4
-
-
-
-
-
-
Production taxes
September 2007
9.0
9.0
2.9
2.7
1.9
1.5
-
-
-
-
-
-
Financial year to date
19.4
19.4
7.1
5.4
4.0
2.9
-
-
-
-
-
-
Royalties
December 2007
55.2
-
-
-
-
-
55.2
26.1
7.4 15.1 6.6
3.4
September
2007
46.2
-
-
-
-
-
46.2
21.6
6.4 12.4 5.8
2.6
Financial year to date
101.4
-
-
-
-
-
101.4
47.7
13.8 27.5 12.4
6.0
TOTAL CASH COSTS
(2)
December 2007
3,233.6 2,067.1
703.3
653.5
399.5
310.8
1,166.5
454.7
184.9 387.5 139.4
108.3
September
2007
3,181.0 2,020.3
688.8
631.4
394.4
305.7
1,160.7
449.9
154.5 400.6 155.7
67.6
Financial year to date
6,414.6 4,087.4
1,392.1 1,284.9
793.9
616.5
2,327.2
904.6
339.4 788.1 295.1
175.9
Plus:
December 2007
775.1 462.6
141.0
160.4
76.0
85.2
312.5
72.7
20.3 219.5
5.6
Amortisation*
September 2007
749.4 436.5
144.9
159.1
63.9
68.6
312.9
74.7
14.1 224.1
9.2
Financial year to date
1,524.5 899.1
285.9
319.5
139.9
153.8
625.4
147.4
34.4 443.6
14.8
Rehabilitation
December 2007
14.8
10.7
4.4
3.3
2.3
0.7
4.1
1.1
- 3.0
-
September
2007
14.5
10.5
4.4
3.3
2.1
0.7
4.0
1.2
- 2.8
-
Financial year to date
29.3
21.2
8.8
6.6
4.4
1.4
8.1
2.3
- 5.8
-
TOTAL PRODUCTION
COSTS
(3)
December 2007
4,023.5 2,540.4
848.7
817.2
477.8
396.7
1,483.1
528.5
205.2 749.4
113.9
September 2007
3,944.9 2,467.3
838.1
793.8
460.4
375.0
1,477.6
525.8
168.6 783.2
76.8
Financial year to date
7,968.4 5,007.7
1,686.8 1,611.0
938.2
771.7
2,960.7
1,054.3
373.8 1,532.6
190.7
Gold sold
December 2007
1,023.9 656.9
239.6
230.8
118.9
67.6
367.0
162.7
45.2 110.0 49.2
19.3
- thousand ounces September
2007
1,038.7 689.2
260.4
235.3
119.2
74.3
349.5
149.6
46.5 102.4 51.0
13.9
Financial year to date
2,062.6 1,346.1
499.9
466.1
238.1
142.0
716.5
312.3
91.7 212.4 100.1
33.2
TOTAL CASH COSTS
December 2007
467
465
434
419
497
680
470
413
605 521 419
830
- US$/oz September
2007
431
413
373
378
466
579
468
423
468 551 430
684
Financial year to date
449
438
402
398
481
627
469
418
534 536 425
764
TOTAL CASH COSTS
December 2007
101,532 101,170
94,390
91,029
108,031
147,719
102,181
89,844
131,508 113,304 91,171
180,500
- R/kg September
2007
98,465 94,248
85,058
86,269
106,393
132,223
106,780
96,670
106,920 125,777 98,172
156,120
Financial year to date
99,988 97,626
89,530
88,626
107,211
139,606
104,424
93,114
119,046 119,319 94,735
170,281
TOTAL PRODUCTION
December 2007
581
572
524
524
594
868
598
480
672 697
873
COSTS September
2007
535
504
453
475
544
711
595
495
511 719
777
- US$/oz
Financial year to date
557
537
487
499
569
784
596
487
588 708
828
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, which include 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.
#
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.
## Discontinued operations are excluded from Total International and Total Mine Operations.
Average exchange rates are US$1 = R6.76 and US$1 = R7.10 for the December 2007 and September 2007 quarters respectively.
17 I GOLD FIELDS RESULTS Q2F2008
Operating and financial results
South African Rand
Total Mine
Operations
South African Operations
Total Driefontein
Kloof Beatrix South Deep
Operating Results
Ore milled/treated (000 tons) December
2007
12,630
3,767 1,478 1,008 868
413
September
2007
12,350
3,922
1,532 994 913 483
Financial year to date
24,980
7,689 3,010 2,002 1,781
896
Yield (grams per ton)
December 2007
2.5
5.4 5.0 7.1 4.3 5.1
September
2007
2.6
5.5 5.3 7.4 4.1 4.8
Financial year to date
2.6
5.4 5.2 7.2 4.2 4.9
Gold produced (kilograms)
December 2007
31,682
20,432 7,451 7,179 3,698 2,104
September
2007
32,472
21,436 8,098 7,319 3,707 2,312
Financial year to date
64,154
41,868 15,549 14,498 7,405
4,416
Gold sold (kilograms)
December 2007
31,848
20,432 7,451 7,179 3,698 2,104
September
2007
32,306
21,436 8,098 7,319 3,707 2,312
Financial year to date
64,154
41,868 15,549 14,498 7,405
4,416
Gold price received (Rand per kilogram)
December 2007
170,488
169,846 170,031 169,508 170,254 169,629
September
2007
155,333
154,926 154,334 154,926 155,975 155,320
Financial year to date
162,857
162,207 161,856 162,147 163,106 162,138
Total cash costs (Rand per kilogram)
December 2007
101,532
101,170 94,390 91,029
108,031 147,719
September
2007
98,465
94,248 85,058 86,269
106,393 132,223
Financial year to date
99,988
97,626 89,530 88,626
107,211 139,606
Total production costs (Rand per kilogram)
December 2007
126,361
124,384 113,904 113,832 129,205 188,546
September
2007
122,110
115,101 103,495 108,457 124,197 162,197
Financial year to date
124,207
119,607 108,483 111,119 126,698 174,751
Operating costs (Rand per ton)
December 2007
265
577 504 683 484 776
September
2007
267
539 472 665 455 651
Financial year to date
266
558 488 674 469 708
Financial Results (Rand million)
Revenue December
2007
5,429.7
3,470.3 1,266.9 1,216.9 629.6
356.9
September
2007
5,018.2
3,321.0 1,249.8 1,133.9 578.2
359.1
Financial year to date
10,447.9
6,791.3 2,516.7 2,350.8 1,207.8
716.0
Operating costs, net
December 2007
3,392.4
2,173.5 744.2 688.7 420.2 320.4
September
2007
3,301.9
2,114.0 723.5 660.6 415.5 314.4
Financial year to date
6,694.3
4,287.5 1,467.7 1,349.3 835.7
634.8
- Operating costs
December 2007
3,341.2
2,173.5 744.2 688.7 420.2 320.4
September
2007
3,291.9
2,114.0 723.5 660.6 415.5 314.4
Financial year to date
6,633.1
4,287.5 1,467.7 1,349.3 835.7
634.8
- Gold inventory change
December 2007
51.2
- - - - -
September
2007
10.0
- - - - -
Financial year to date
61.2
- - - - -
Operating profit
December 2007
2,037.3
1,296.8 522.7 528.2 209.4
36.5
September
2007
1,716.3
1,207.0 526.3 473.3 162.7
44.7
Financial year to date
3,753.6
2,503.8 1,049.0 1,001.5 372.1
81.2
Amortisation of mining assets
December 2007
729.6
462.6 141.0 160.4 76.0
85.2
September
2007
736.1
436.5 144.9 159.1 63.9
68.6
Financial year to date
1,465.7
899.1 285.9 319.5 139.9 153.8
Net operating profit
December 2007
1,307.7
834.2 381.7 367.8 133.4 (48.7)
September
2007
980.2
770.5 381.4 314.2 98.8 (23.9)
Financial year to date
2,287.9
1,604.7 763.1 682.0 232.2 (72.6)
Other income/(expense)
December 2007
1.0
(35.9) (17.5) (9.6) (7.7) (1.1)
September
2007
(28.1)
(53.3) (19.6) (11.5) (11.0) (11.2)
Financial year to date
(27.1)
(89.2) (37.1) (21.1) (18.7) (12.3)
Profit before taxation
December 2007
1,308.7
798.3 364.2 358.2 125.7 (49.8)
September
2007
952.1
717.2 361.8 302.7 87.8 (35.1)
Financial year to date
2,260.8
1,515.5 726.0 660.9 213.5 (84.9)
Mining and income taxation December 2007
439.2
281.2 127.1 126.1 47.6 (19.6)
September 2007
335.5
265.1 139.4 104.0 33.1 (11.4)
Financial year to date
774.7
546.3 266.5 230.1 80.7 (31.0)
- Normal taxation
December 2007
259.7
174.7 87.1 87.3 0.3
-
September 2007
218.9
157.5 97.6 59.6 0.3
-
Financial year to date
478.6
332.2 184.7 146.9 0.6
-
- Deferred taxation
December 2007
179.5
106.5 40.0 38.8 47.3 (19.6)
September 2007
116.6
107.6 41.8 44.4 32.8 (11.4)
Financial year to date
296.1
214.1 81.8 83.2 80.1 (31.0)
Profit before exceptional items
December 2007
869.5
517.1 237.1 232.1 78.1 (30.2)
September 2007
616.6
452.1 222.4 198.7 54.7 (23.7)
Financial year to date
1,486.1
969.2 459.5 430.8 132.8 (53.9)
Exceptional items
December 2007
1.9
1.9 - 0.5 0.5 0.9
September 2007
29.3
29.1 21.7 0.4 0.3 6.7
Financial year to date
31.2
31.0 21.7 0.9 0.8 7.6
Net profit
December 2007
871.4
519.0 237.1 232.6 78.6 (29.3)
September 2007
645.9
481.2 244.1 199.1 55.0 (17.0)
Financial year to date
1,517.3
1,000.2 481.2 431.7 133.6 (46.3)
Net profit excluding gains and losses on
foreign exchange, financial instruments and
exceptional items
December 2007
858.6
517.9 237.1 232.3 78.3 (29.3)
September 2007
636.8
469.9 230.6 198.9 54.8 (14.4)
Financial year to date
1,495.4
987.8 467.7 431.2 133.1 (44.2)
Capital expenditure
December 2007
1,435.4
838.5 267.3 225.8 141.7 203.7
September 2007
1,287.9
739.8 219.3 217.5 133.8 169.2
Financial year to date
2,723.3
1,578.3 486.6 443. 3 275. 5 372.9
Planned for next six months to June 2008
3,293.5
1,826.0 532.1 466.0 305.1 522.8
GOLD FIELDS RESULTS Q2F2008 I 18
Operating and financial results
South African Rand
International Operations
Discontinued
Operations
##
Total
Ghana
Australia
#
Venezuela
Tarkwa
Damang
St Ives
Agnew
Choco 10
Operating Results
Ore milled/treated (000 tons)
December 2007
8,863 5,588 1,103 1,859 313 360
September
2007
8,428 5,213 1,124 1,757 334 401
Financial year to date
17,291 10,801 2,227 3,616
647
761
Yield (grams per ton)
December 2007
1.3 0.9 1.2 1.8 4.9 1.6
September 2007
1.3 0.9 1.3 1.8 4.7 1.2
Financial year to date
1.3 0.9 1.3 1.8 4.8 1.4
Gold produced (kilograms)
December 2007
11,250 4,925 1,376 3,420 1,529 563
September
2007
11,036 4,790 1,475 3,185 1,586 489
Financial year to date
22,286 9,715 2,851 6,605 3,115 1,052
Gold sold (kilograms)
December 2007
11,416 5,061 1,406 3,420 1,529 600
September
2007
10,870 4,654 1,445 3,185 1,586 433
Financial year to date
22,286 9,715 2,851 6,605 3,115 1,033
Gold price received (Rand per kilogram)
December 2007
171,636 171,369 171,906 171,404 172,793 331,500
September
2007
156,136 155,028 154,948 156,609 159,521 232,564
Financial year to date
164,076 163,541 163,311 164,269 166,035 290,029
Total cash costs (Rand per kilogram)
December 2007
102,181 89,844 131,508
113,304 91,171 180,500
September
2007
106,780 96,670 106,920
125,777 98,172 156,120
Financial year to date
104,424 93,114 119,046
119,319 94,735 170,281
Total production costs (Rand per kilogram)
December 2007
129,914 104,426 145,946
151,425
189,833
September
2007
135,934 112,978 116,678
164,158
177,367
Financial year to date
132,850 108,523 131,112
157,675
184,608
Operating costs (Rand per ton)
December 2007
132 83 182
212 340 256
September
2007
140 87 153
229 447 248
Financial year to date
136 85 167
220 395 251
Financial Results (Rand million)
Revenue
December 2007
1,959.4 867.3 241.7 586.2 264.2 198.9
September
2007
1,697. 2 721.5 223.9 498.8 253.0 100.7
Financial year to date
3,656.6 1,588.8 465.6 1,085.0 517.2 299.6
Operating costs, net
December 2007
1,218.9 453.3 183.4 393.8 188.4 114.1
September
2007
1,187.9 451.3 155.2 413.2 168.2 85.8
Financial year to date
2,406.8 904.6 338.6 807.0 356.6 199.9
- Operating costs
December 2007
1,167.7 465.8 200.9 394.6 106.4 92.0
September
2007
1,177.9 454.2 171.8 402.5 149.4 99.3
Financial year to date
2,345.6 920.0 372.7 797.1 255.8 191.3
- Gold inventory change
December 2007
51.2 (12.5) (17.5) (0.8) 82.0 22.1
September
2007
10.0 (2.9) (16.6) 10.7 18.8 (13.5)
Financial year to date
61.2 (15.4) (34.1)
9.9 100.8
8.6
Operating profit
December 2007
740.5 414.0 58.3 192.4 75.8 84.8
September
2007
509.3 270.2 68.7 85.6 84.8 14.9
Financial year to date
1,249.8 684.2 127.0 278.0 160.6 99.7
Amortisation of mining assets
December 2007
267.0 75.8 20.2
171.0
5.6
September
2007
299.6 75.5 14.1
210.0
9.2
Financial year to date
566.6 151.3 34.3
381.0
14.8
Net operating profit
December 2007
473.5 338.2 38.1
97.2
79.2
September
2007
209.7 194.7 54.6
(39.6)
5.7
Financial year to date
683.2 532.9 92.7
57.6
84.9
Other income/(expense)
December 2007
36.9 10.0 (0.4)
27.3
(27.8)
September 2007
25.2 1.0 0.2
24.0
(1.8)
Financial year to date
62.1 11.0 (0.2)
51.3
(29.6)
Profit before taxation
December 2007
510.4 348.2 37.7
124.5
51.4
September
2007
234.9 195.7 54.8
(15.6)
3.9
Financial year to date
745.3 543.9 92.5
108.9
55.3
Mining and income taxation December
2007
158.0 102.7 14.9
40.4
3.2
September 2007
70.4 46.0 16.3
8.1
3.6
Financial year to date
228.4 148.7 31.2
48.5
6.8
- Normal taxation
December 2007
85.0 56.2 7.2
21.6
3.2
September
2007
61.4 36.5 6.7
18.2
2.7
Financial year to date
146.4 92.7 13.9
39.8
5.9
- Deferred taxation
December 2007
73.0 46.5 7.7
18.8
-
September
2007
9.0 9.5 9.6
(10.1)
0.9
Financial year to date
82.0 56.0 17.3
8.7
0.9
Profit before exceptional items
December 2007
352.4 245.5 22.8
84.1
48.2
September 2007
164.5 149.7 38.5
(23.7)
0.3
Financial year to date
516.9 395.2 61.3
60.4
48.5
Exceptional items
December 2007
- - -
-
-
September
2007
0.2 - -
0.2
-
Financial year to date
0.2 - -
0.2
-
Net profit
December 2007
352.4 245.5 22.8
84.1
48.2
September
2007
164.7 149.7 38.5
(23.5)
0.3
Financial year to date
517.1 395.2 61.3
60.6
48.5
Net profit excluding gains and losses on
foreign exchange, financial instruments and
exceptional items
December 2007
340.7 234.6 22.3
83.8
43.6
September 2007
166.9 149.0 38.2
(20.3)
1.1
Financial year to date
507.6 383.6 60.5
63.5
47.4
Capital expenditure
December 2007
596.9 314.3 51.4 175.1 56.1 30.2
September 2007
548.1 306.7 52.1 151.5 37.8 39.8
Financial year to date
1,145.0 621.0 103.5 326.6 93.9 70.0
Planned for next six months to June 2008
1,467.5 873.7 98.3 342.0 153.5
-
#
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.
## Discontinued operations are excluded from Total International Operations.
19 I GOLD FIELDS RESULTS Q2F2008
Operating and financial results
United States Dollars
Total Mine
Operations
South African Operations
Total Driefontein Kloof Beatrix
South
Deep
Operating Results
Ore milled/treated (000 tons)
December 2007
12,630
3,767 1,478 1,008 868 413
September
2007
12,350
3,922 1,532 994 913 483
Financial year to date
24,980
7,689 3,010 2,002 1,781 896
Yield (ounces per ton)
December 2007
0.081
0.174 0.162 0.229 0.137 0.164
September 2007
0.085
0.176 0.170 0.237 0.131 0.154
Financial year to date
0.083
0.175 0.166 0.233 0.134 0.158
Gold produced (000 ounces)
December 2007
1,018.6
656.9 239.6 230.8 118.9 67.6
September 2007
1,044.0
689.2 260.4 235.3 119.2 74.3
Financial year to date
2,062.6
1,346.1 499.9 466.1 238.1 142.0
Gold sold (000 ounces)
December 2007
1,023.9
656.9 239.6 230.8 118.9 67.6
September
2007
1,038.7
689.2 260.4 235.3 119.2 74.3
Financial year to date
2,062.6
1,346.1 499.9 466.1 238.1 142.0
Gold price received (dollars per ounce)
December 2007
784
781 782 780 783 780
September
2007
680
679 676 679 683 680
Financial year to date
731
728 726 728 732 728
Total cash costs (dollars per ounce)
December 2007
467
465 434 419 497 680
September
2007
431
413 373 378 466 579
Financial year to date
449
438 402 398 481 627
Total production costs (dollars per ounce)
December 2007
581
572 524 524 594 868
September
2007
535
504 453 475 544 711
Financial year to date
557
537 487 499 569 784
Operating costs (dollars per ton)
December 2007
39
85 74
101 72
115
September
2007
38
76 67 94 64 92
Financial year to date
38
80 70 97 68
102
Financial Results ($ million)
Revenue
December 2007
800.8
512.3 187.2 179.5 92.9 52.7
September
2007
706.8
467.7 176.0 159.7 81.4 50.6
Financial year to date
1,507.6
980.0 363.2 339.2 174.3 103.3
Operating costs, net
December 2007
500.9
321.0 109.9 101.7 62.1 47.3
September
2007
465.1
297.7 101.9 93.0 58.5 44.3
Financial year to date
966.0
618.7 211.8 194.7 120.3 91.6
- Operating costs
December 2007
493.5
321.0 109.9 101.7 62.1 47.3
September
2007
463.7
297.7 101.9 93.0 58.5 44.3
Financial year to date
957.2
618.7 211.8 194.7 120.6 91.6
- Gold inventory change
December 2007
7.4
- - - - -
September
2007
1.4
- - - - -
Financial year to date
8.8
- - - - -
Operating profit
December 2007
299.9
191.3 77.3 77.7 30.8 5.4
September
2007
241.7
170.0 74.1 66.7 22.9 6.3
Financial year to date
541.6
361.3 151.4 144.5 53.7 11.7
Amortisation of mining assets
December 2007
107.8
68.2 20.9 23.7 11.2 12.5
September 2007
103.7
61.5 20.4 22.4 9.0 9.7
Financial year to date
211.5
129.7 41.3 46.1 20.2 22.2
Net operating profit
December 2007
192.2
123.1 56.4 54.0 19.6 (7.1)
September
2007
137.9
108.5 53.7 44.3 13.9 (3.4)
Financial year to date
330.2
231.6 110.1 98.4 33.5 (10.5)
Other income/(expenses)
December 2007
0.0
(5.4) (2.6) (1.4) (1.2) (0.2)
September 2007
(4.0)
(7.5) (2.8) (1.6) (1.5) (1.6)
Financial year to date
(4.0)
(12.9) (5.4) (3.0) (2.7) (1.8)
Profit before taxation
December 2007
192.2
117.7 53.7 52.7 18.4 (7.3)
September
2007
133.9
101.0 51.0 42.6 12.4 (4.9)
Financial year to date
326.1
218.7 104.7 95.4 30.8 (12.3)
Mining and income taxation
December 2007
64.5
41.4 18.9 18.6 6.9 (2.9)
September
2007
47.3
37.3 19.6 14.6 4.7 (1.6)
Financial year to date
111.8
78.8 38.5 33.2 11.6 (4.5)
- Normal taxation
December 2007
38.3
25.7 13.0 12.8
-
-
September
2007
30.8
22.2 13.7 8.4 0.1
-
Financial year to date
69.1
47.9 26.7 21 .2 0.1
-
- Deferred taxation
December 2007
26.2
15.7 5.9 5.7 7.0
(2.9)
September
2007
16.5
15.2 5.9 6.3 4.6
(1.6)
Financial year to date
42.7
30.9 11.8 12.0 11.6 (4.5)
Profit before exceptional items
December 2007
127.7
76.1 35.0 34.1 11.4 (4.3)
September
2007
86.7
63.7 31.2 28.0 7.8 (3.3)
Financial year to date
214.4
139.7 66.2 62.2 19.2 (7.8)
Exceptional items
December 2007
0.4
0.4 0.0 0.0 0.1 0.2
September
2007
4.1
4.1 3.1 0.1
- 0.9
Financial year to date
4.5
4.5 3.1 0.1 0.1 1.1
Net profit
December 2007
128.1
76.5 35.0 34.1 11.5 (4.1)
September 2007
90.8
67.8 34.4 28.1 7.8 (2.4)
Financial year to date
218.9
144.2 69.3 62.3 19.3 (6.7)
Net profit excluding gains and losses on
foreign exchange, financial instruments and
exceptional items
December 2007
126.1
76.3 35.0 34.2 11.5 (4.4)
September 2007
89.7
66.2 32.5 28.0 7.7 (2.0)
Financial year to date
215.8
142.5 67.5 62.2 19.2 (6.4)
Capital expenditure
December 2007
211.8
123.6 39.3 33.4 21.0 30.0
September 2007
181.2
104.2 30.9 30.6 18.8 23.8
Financial year to date
393.0
227.7 70.2 64.0 39.8 53.8
Planned for next six months to June 2008
470.5
260.9 76.0 66.6 43.6 74.7
Average exchange rates were US$1 = R6.76 and US$1 = R7.10 for the December 2007 and September 2007 quarters respectively. The Australian dollar exchange rates were A$1 = R6.03 and A$1 = R6.02 for the December 2007 and September 2007 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. ## Discontinued operations are excluded from Total International and Total Mine Operations.
GOLD FIELDS RESULTS Q2F2008 I 20
Operating and financial results
United States Dollars
International Operations
Australian Dollars
Discontinued
operations
Total
Ghana
Australia
#
Australia
#
Venezuela
##
Tarkwa
Damang
St Ives
Agnew
St Ives
Agnew
Choco 10
Operating Results
Ore milled/treated (000 tons)
December 2007
8.863 5,588 1,103 1,859 313
1,859 313
360
September
2007
8,428 5,213 1,124 1,757 334
1,757 334
401
Financial year to date
17,291 10,801 2,227 3,616
647
3,616 647
761
Yield (ounces per ton)
December 2007
0.041 0.028 0.040 0.059 0.157
0.059 0.157
0.050
September 2007
0.042 0.030 0.042 0.058 0.153
0.058 0.153
0.039
Financial year to date
0.041 0.029 0.041 0.059 0.155
0.059 0.155
0.044
Gold produced(000 ounces)
December 2007
361.7 158.3 44.2 110.0 49.2
110.0 49.2
18.1
September
2007
354.8 154.0 47.4 102.4 51.0
102.4 51.0
15.7
Financial year to date
716.5 312.3 91.7 212.4 100.1
212.4 100.1
33.8
Gold sold (000 ounces)
December 2007
367.0 162.7 45.2 110.0 49.2
110.0 49.2
19.3
September
2007
349.5 149.6 46.5 102.4 51.0
102.4 51.0
13.9
Financial year to date
716.5 312.3 91.7 212.4 100.1
212.4 100.1
33.2
Gold price received
December 2007
790 788 791 789 795
884 891
1,525
(dollars per ounce)
September 2007
684 679 679 686 699
809 824
1,019
Financial year to date
736 734 733 737 745
847 856
1,302
Total cash costs
December 2007
470 413 605 521 419
584 470
830
(dollars per ounce)
September 2007
468 423 468 551 430
650 507
684
Financial year to date
469 418 534 536 425
615 489
764
Total production costs
December 2007
598 480 672
697
781
873
(dollars per ounce)
September 2007
595 495 511
719
848
777
Financial year to date
596 487 588
708
813
828
Operating costs
December 2007
19 12 27 31 50
35 56
38
(dollars per ton)
September 2007
20 12 22 32 63
38 74
35
Financial year to date
20 12 24 32 57
37 66
36
Financial Results ($ million)
Revenue
December 2007
288.7 127.7 35.7 86.3 39.0
97.1 43.8
29.0
September
2007
239.0 101.6 31.5 70.3 35.6
82.9 42.0
14.2
Financial year to date
527.7 229.3 67.2 156.6 74.6
180.0 85.8
43.2
Operating costs, net
December 2007
180.1 67.0 27.0 58.4 27.8
65.1 31.2
16.7
September 2007
167.3 63.5 21.9 58.2 23.7
68.6 27.9
12.1
Financial year to date
347.4 130.5 48.9 116.6 51.5
133.8 59.1
28.8
- Operating costs
December 2007
172.6 68.8 29.6 58.4 15.9
65.3 17.6
13.6
September 2007
165.9 64.0 24.2 56.7 21.0
66.9 24.8
14.0
Financial year to date
338.5 132.8 53.8 115.1 36.9
132.2 42.4
27.6
- Gold inventory change
December 2007
7.5
(1.8)
(2.6)
-
11.9
(0.1) 13.6
3.1
September
2007
1.4 (0.4) (2.3) 1.5 2.6
1.8 3.1
(1.9)
Financial year to date
8.9 (2.2) (4.9) 1.5 14.5
1.7 16.7
1.2
Operating profit
December 2007
108.5 60.6 8.7 27.9 11.2
31.9 12.5
12.3
September
2007
71.9 38.1 9.7 12.1 11.9
14.2 14.1
2.1
Financial year to date
180.4 98.7 18.3 40.1 23.2
46.1 26.6
14.4
Amortisation of mining assets
December 2007
39.6 11.2 2.9
25.4
28.3
0.8
September
2007
42.2 10.6 2.0
29.6
34.9
1.3
Financial year to date
81.8 21.8 4.9
55.0
63.2
2.1
Net operating profit
December 2007
69.1 49.5 5.7
13.8
16.2
11.5
September
2007
29.4 27.4 7.7
(5.7)
(6.6)
0.8
Financial year to date
98.6 76.9 13.4
8.3
9.6
12.3
Other income/(expenses)
December 2007
5.4 1.5
(0.1)
4.0
4.5
(4.0)
September
2007
3.5 0.1
-
3.4
4.0
(0.3)
Financial year to date
8.9 1.6
(0.1)
7.4
8.5
(4.3)
Profit before taxation
December 2007
74.4 51.0 5.6
17.8
20.7
7.5
September
2007
33.1 27.6 7.7
(2.3)
(2.6)
0.5
Financial year to date
107.5 78.5 13.3
15.7
18.1
8.0
Mining and income taxation December
2007
23.1 15.1 2.2
5.8
6.7
0.5
September
2007
9.9 6.5 2.3
1.1
1.3
0.5
Financial year to date
33.0 21.5 4.5
7.0
8.0
1.0
- Normal taxation
December 2007
12.5 8.3 1.1
3.1
3.6
0.5
September
2007
8.6 5.1 0.9
2.6
3.0
0.4
Financial year to date
21.1 13.4 2.0
5.7
6.6
0.9
- Deferred taxation
December 2007
10.5 6.8 1.1
2.7
3.1
-
September
2007
1.3 1.3 1.4
(1.4)
(1.7)
0.1
Financial year to date
11.8 8.1 2.5
1.3
1.4
0.1
Profit before exceptional items
December 2007
51.3 35.9 3.4
12.0
13.9
7.0
September 2007
23.1 21.1 5.4
(3.4)
(3.9)
0.0
Financial year to date
74.6 57.0 8.8
8.7
10.0
7.0
Exceptional items
December 2007
- - -
-
-
-
September 2007
- - -
-
-
-
Financial year to date
- - -
-
-
-
Net profit
December 2007
51.3 35.9 3.4
12.0
13.9
7.0
September 2007
23.1 21.1 5.4
(3.4)
(3.9)
0.0
Financial year to date
74.6 57.0 8.8
8.7
10.0
7.0
Net profit excluding gains and losses
on foreign exchange, financial
instruments and exceptional items
December 2007
49.7 34.4
3.3
12.1
13.9
6.6
September 2007
23.5 21.0 5.4
(2.9)
(3.4)
0.2
Financial year to date
73.2 55.4 8.7
9.2
10.5
6.8
Capital expenditure
December 2007
88.1 46.4 7.6 25.8 8.2
29.0 9.3
4.5
September 2007
77.1 43.2 7.3 21.3 5.3
25.2 6.3
5.6
Financial year to date
165.2 89.6 14.9 47.1 13.5
54.2 15.6
10.1
Planned for next six months to June 2008
209.6 124.8 14.0 48.9 21.9
56.2 25.2
-
21 I GOLD FIELDS RESULTS Q2F2008
Underground and surface
South African rand and metric units
Operating Results
Total Mine
Operations
South African Operations
International Operations
Discontinued
Operations
Total Driefontein
Kloof Beatrix
South
Deep
Total
Ghana Australia
Venezuela
##
Tarkwa
Damang
St Ives
Agnew
Choco 10
Ore milled / treated (000 ton)
- underground
December 2007
3,349
2,957 920 839 868 330 392 - -
302
90
-
September
2007
3,451
3,063 924 893 913 333 388 - -
273
115
-
Financial year to date
6,800
6,020 1,844 1,732 1,781 663 780 - -
575
205
-
- surface
December 2007
9,281
810 558 169
- 83
8,471 5,588 1,103 1,557 223
360
September 2007
8,899
859 608 101
- 150
8,040 5,213 1,124 1,484 219
401
Financial year to date
18,180
1,669 1,166 270
- 233 16,511 10,801 2,227 3,041 442
761
- total
December 2007
12,630
3,767 1,478 1,008 868 413 8,863 5,588 1,103 1,859 313
360
September 2007
12,350
3,922 1,532 994 913 483 8,428 5,213 1,124 1,757 334
401
Financial year to date
24,980
7,689 3,010 2,002 1,781 896 17,291 10,801 2,227 3,616 647
761
Yield (grams per ton)
- underground
December 2007
6.5
6.7 7.7 8.4 4.3 6.2 5.4 - -
4.4
8.6
-
September
2007
6.6
6.8 8.2 8.1 4.1 6.6 5.5 - -
4.1
8.7
-
Financial year to date
6.6
6.7 7.9 8.2 4.2 6.4 5.4 - -
4.3
8.6
-
- surface
December 2007
1.1
0.8 0.7 0.9 - 0.8 1.1 0.9 1.2 1.3 3.4
1.6
September
2007
1.1
0.8 0.8 0.7 - 0.8 1.1 0.9 1.3 1.4 2.7
1.2
Financial year to date
1.1
0.8 0.8 0.8 - 0.8 1.1 0.9 1.3 1.4 3.0
1.4
- combined
December 2007
2.5
5.4 5.0 7.1 4.3 5.1 1.3 0.9 1.2 1.8 4.9
1.6
September 2007
2.6
5.5 5.3 7.4 4.1 4.8 1.3 0.9 1.3 1.8 4.7
1.2
Financial year to date
2.6
5.4 5.2 7.2 4.2 4.9 1.3 0.9 1.3 1.8 4.8
1.4
Gold produced (kilograms)
- underground
December 2007
21,916
19,806 7,050 7,024 3,698 2,034 2,110 - -
1,336
774
-
September
2007
22,886
20,763 7,609 7,250 3,707 2,197 2,123 - -
1,128
995
-
Financial year to date
44,802
40,569 14,659 14,274 7,405 4,231 4,233 - -
2,464
1,769
-
- surface
December 2007
9,766
626 401 155
- 70
9,140 4,925 1,376 2,08 4 755
563
September
2007
9,586
673 489 69
- 115
8,913 4,790 1,475 2,057 591
489
Financial year to date
19,352
1,299 890 224
- 185
18,053 9,715 2,851 4,141 1,346
1,052
- total
December 2007
31,682
20,432 7,451 7,179 3,698 2,104 11,250 4,925 1,376 3,420 1,529
563
September 2007
32,472
21,436 8,098 7,319 3,707 2,312 11,036 4,790 1,475 3,185 1,586
489
Financial year to date
64,154
41,868 15,549 14,498 7,405 4,416 22,286 9,715 2,851 6,605 3,115
1,052
Operating costs (Rand per ton)
- underground
December 2007
696
715 760 808 484 958 554 - -
501
730
-
September
2007
660
671 735 732 455 918 576 - -
553
628
-
Financial year to date
677
691 748 765 469 938 565 - -
526
673
-
- surface
December 2007
109
74 80 64 - 52 112 83 182 156 182
256
September
2007
114
70 73 72 - 57 119 87 153 169 352
248
Financial year to date
112
76 76 92 - 55 115 85 167 163 267
251
- total
December 2007
265
577 504 683 484 776 132 83 182 212 340
256
September 2007
267
539 472 665 455 651 140 87 153 229 447
248
Financial year to date
266
558 488 674 469 708 136 85 167 220 395
251
## Discontinued operations are excluded from Total International and Total Mine Operations.
GOLD FIELDS RESULTS Q2F2008 I 22
Development 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 2007 quarter
September 2007 quarter
Year to date F2008
Reef
Carbon
Leader
Main
VCR
Carbon
Leader
Main V CR
Carbon
Leader
Main VCR
Advanced (m)
4,619
958
1,993 4,559 1,389 1,574 9,178 2,347
3,567
Advanced on reef
(m)
748
590
286 792 572 314
1,540
1,162 600
Sampled (m)
741
588
192 744 366 255
1,485 954
447
Channel width
(cm)
56
37
87 58 32 53 57 35
68
Average value
-
(g/t)
17.2
14.0
15.1 19.1 14.4 23.7 18.1 14.2
18.8
-
(cm.g/t)
957
1
521
1,314 1,104 461 1,244 1,031 498
1,274
Kloof
December 2007 quarter
September 2007 quarter
Year to date F2008
Reef Cobble
Kloof
Main
VCR
Cobble Kloof Main VCR
Cobble Kloof Main VCR
Advanced (m)
73
216
1,556
7,232 31 361
1,717
8,186 104 577
3,273
15,418
Advanced on reef
(m)
73
17
367
974 31 - 343 976 104 17 710
1,950
Sampled (m)
84
21
333
795 21 - 270 805 105 21 603
1,600
Channel width
(cm)
158
121
124
99 243
- 100 97 175 121 113 98
Average value
-
(g/t)
6.1
2.4
10.6
20.6 3.9 - 11.3 24.4 5.5 2.4
10.9 22.4
-
(cm.g/t)
959
285
1,319
2,045 947
-
1,130
2,357 956 285
1,235
2,202
Beatrix December 2007 quarter
September 2007 quarter
Year to date F2008
Reef
Beatrix
Kalkoenkrans Beatrix
Kalkoenkrans Beatrix
Kalkoenkrans
Advanced (m)
8,372
2,281 8,392 2,859 16,764 5,140
Advanced on reef
(m)
2,273
222 1,770 167 4,043 389
Sampled (m)
2,079
204 1,734 168 3,813 372
Channel width
(cm)
103
129 83 95 94 114
Average value
-
(g/t)
9.4
21.5 9.0 16.3 9.3 19.5
-
(cm.g/t)
974
2,778 745
1,550 870
2,224
South Deep
December 2007 quarter
September 2007 quarter
Year to date F2008
Reef
VCR
Elsburg VCR
Elsburg VCR
Elsburg
Advanced (m)
907
1,039 630 1,054 1,537 2,093
Advanced on reef
(m)
67
942 129 685 196
1,627
Sampled (m)
84
-
102
-
186
-
Channel width
(cm)
67
-
2
80
- 74
-
Average value
-
(g/t)
33.2
5.2 9.3 6.4 19.1 5.7
-
(cm.g/t)
2,241
-
3
740
- 1,418
-
1)
Development is traversing thin single & poorly developed Multiple Band Carbon Leader.
2)
Full channel width not fully exposed in development, hence not reported.
3)
Trackless development in the Elsburg reefs is evaluated by means of the block model.
23 I GOLD FIELDS RESULTS Q2F2008
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
Investor Enquiries
WILLIE JACOBSZ
Telephone: (+27)(11) 644 2460
Facsimile: (+27)(11) 484 0639
e-mail: wjacobsz@gfexpl.com
Media Enquiries
REIDWAAN WOOKAY
Telephone: (+27)(11) 644 2665
Facsimile: (+27)(11) 484 0639
e-mail: reidwaan.wookay@goldfields.co.za
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
Registered Offices
JOHANNESBURG
Gold Fields Limited
24 St Andrews Road
Parktown
Johannesburg
2193
Postnet Suite 252
Private Bag X30500
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
Directors
A J Wright (Chairman)
I D Cockerill * (Chief Executive Officer)
N J Holland * (Chief Financial Officer)
K Ansah#
J G Hopwood
G Marcus
J M McMahon *
D N Murray
D M J Ncube
R L Pennant-Rea *
P J Ryan
C I von Christierson
* British
# Ghanaian
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: 31 January 2008
GOLD FIELDS LIMITED
By:
Name: Mr W J Jacobsz
Title: Senior Vice President: Investor
Relations and Corporate Affairs