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
October 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- ________
SHORT TERM EARNINGS REDUCED BY SAFETY
RELATED MEASURES AT THE SOUTH AFRICAN
OPERATIONS
JOHANNESBURG. 29 October 2008, Gold Fields Limited (NYSE & JSE: GFI) today announced
normalised earnings excluding gains and losses on foreign exchange, financial instruments,
exceptional items, share of loss of associates after taxation and discontinued operations for the
September 2008 quarter of R120 million, compared with earnings of R943 million and R409 million
for the June 2008 and September 2007 quarters respectively. In US dollar terms normalised
earnings excluding gains and losses on foreign exchange, financial instruments, exceptional items,
share of loss of associates after taxation and discontinued operations for the September 2008
quarter were US$16 million, compared with earnings of US$123 million and US$58 million in the
June 2008 and the September 2007 quarters respectively.
September 2008 quarter salient features:
Improved safety performance;
Attributable gold production decreased as expected by 8 per cent to 798,000 ounces; half the
shortfall is attributable to short term safety related rehabilitation in South Africa;
Cash cost at R153,461 per kilogram (US$617 per ounce) was similar to guidance while NCE at
R226,120 per kilogram (US$909 per ounce) was 8 per cent better than guidance;
Rehabilitation of 95 2 West and 95 3 West access ramps at South Deep completed by the end
of September;
First shipment of concentrate at Cerro Corona took place on 30 September;
Main shaft infrastructure rehabilitation at Kloof well on track for completion by end December
2008;
St Ives’ Belleisle achieved full production.
Statement by Nick Holland,
Chief Executive Officer of Gold Fields:
“During the September quarter Gold Fields
delivered its best safety performance ever,
indicating that the intense focus on safety is
delivering results. However, despite the
significant improvements across all measures,
we are not yet satisfied. Gold Fields remains
committed to improving all its safety metrics
and safe production remains the number one
priority.
In line with the guidance that we provided for
Q1 F2009, our earnings were reduced
significantly by the safety related rehabilitation
work at the Driefontein, Kloof and South Deep
mines in South Africa, as well as by higher
costs, driven largely by the annual wage
increases in South Africa and the higher
power tariffs in both South Africa and Ghana,
along with continued inflation across the
globe.
However, with the rehabilitation work in South
Africa as well as the international growth
projects scheduled for completion by the end
of December, we remain on track to achieve
our short term target of a run rate of
approximately 1 million attributable equivalent
ounces of gold during the March quarter next
year, at an NCE of approximately US$725/oz
at R/US$8.00.
A major milestone was achieved post quarter
end with Cerro Corona making its first
shipment of concentrate.”
Stock data
JSE Limited – (GFI)
Number of shares in issue
Range - Quarter
ZAR58.10 – ZAR102.00
- at end September 2008
653,243,630
Average Volume - Quarter
2,934,183 shares / day
- average for the quarter
653,241,161
NYSE – (GFI)
Free Float
100%
Range - Quarter
US$7.16 – US$13.15
ADR Ratio
1:1
Average Volume - Quarter
8,064,404 shares / day
Bloomberg / Reuters
GFISJ / GFLJ.J
1 I GOLD FIELDS RESULTS Q1F2009
Health and safety
We deeply regret to report that there were two fatal injuries during the
reporting quarter; one ore pass accident and the other accident due to
winches and rigging. However, all safety statistics improved with the fatal
injury frequency rate for the quarter improving from 0.46 to 0.05 per million
hours worked. The lost time injury frequency rate improved from 6.15 to
4.72, the serious injury frequency rate improved from 3.30 to 3.04 and the
days lost frequency rate improved from 238 to 209.
The Full Compliance Health and Safety Management System is being
revised to improve safety performance. To monitor this, the frequency of
safety audits at Driefontein, Kloof and Beatrix have been increased to
quarterly and South Deep will be added to the quarterly cycle.
Du Pont, who was tasked to assess the existing health and safety
management systems at Gold Fields and benchmark them against
international best practices, is continuing with their work at the South African
operations and is expected to report back to management during the
December quarter.
Safe production remains our number one priority. While significant progress
was made during this quarter, we continue to focus on all of our systems,
procedures and practices with a view to improving our overall safety
performance. Strategies to further prevent the risk of injury are ongoing.
Financial review
Quarter ended 30 September 2008 compared with
quarter ended 30 June 2008
Revenue
Attributable gold production for the September 2008 quarter amounted to
798,000 ounces compared with 865,000 ounces in the June quarter, a
decrease of 8 per cent. This was slightly lower than the guidance given on 1
August, mainly due to a slower build-up of production at Cerro Corona.
Production at the South African operations decreased from 553,000 ounces
to 492,000 ounces or 11 per cent. Attributable production at the international
operations decreased 2 per cent from 312,000 ounces to 306,000 ounces.
At the South African operations the decrease in gold production in the
September quarter was directly attributable to the rehabilitation programmes
at South Deep, Driefontein and Kloof. At Driefontein, the decrease in gold
production was slightly better than the guidance given in the June quarterly
report, while Kloof achieved 25 per cent above guidance. At Beatrix the 14
per cent quarter on quarter decline in gold production was due to a lower
mine call factor which resulted in lower yields. The quarter on quarter decline
at South Deep was broadly in line with guidance and resulted from a slower
than expected return to operational stability after completion of the
restructuring process.
At the international operations, managed gold production at Tarkwa
decreased by 7 per cent due to a build-up of gold-in-process (GIP) in the
South Heap leach pads. At Damang, gold production decreased by 12 per
cent due to the unexpected failure of the pebble crusher, causing blending
issues in the mill. This resulted in an increase in soft blend low grade ore to
maintain a balanced mill-feed mix-ratio and a decrease in yield. Total gold
production from Ghana reduced by 8 per cent quarter on quarter. Gold
production from Australia decreased by 2 per cent. Agnew decreased by 4
per cent mainly due to lower underground grades as well as lower volumes
due to a planned six day maintenance shutdown. St Ives was marginally
down due to a lower recovery at Lefroy mill but 6 per cent below guidance
due to the slow ramp up of Cave Rocks and poor grade from Argo
underground.
The average quarterly US dollar gold price achieved decreased 2 per cent
from US$895 per ounce in the June quarter to US$874 per ounce in the
September quarter. The average rand/US dollar exchange rate of R7.74 was
similar to the R7.77 achieved in the June quarter. As a result of the above
factors the rand gold price weakened from R223,568 per kilogram to
R217,586 per kilogram, a 3 per cent decrease. The Australian dollar gold
price increased from A$949 per ounce to A$990 per ounce as the US dollar
strengthened against the Australian dollar from 0.9434 in the June quarter to
0.9005 in the September quarter.
The decrease in the rand gold price achieved, together with the decrease in
production, resulted in revenue of R5,724 million (US$740 million), a
decrease in rand terms of 11 per cent compared with the R6,452 million
(US$836 million) achieved in the June quarter.
Operating costs
Operating costs increased from R3,748 million (US$484 million) in the June
quarter to R4,233 million (US$547 million) in the September quarter. Total
cash costs increased by 22 per cent from R125,359 per kilogram (US$502
per ounce) in the June quarter to R153,461 per kilogram (US$617 per ounce)
in the September quarter.
At the South African operations, operating costs increased from R2,197
million (US$282 million) to R2,468 million (US$319 million), an increase of 12
per cent. This increase was mainly due to the annual wage increase of 10
per cent, the 20 per cent increase in electricity costs and two months of
winter power tariffs, together with less capitalised development costs due to
less off reef development metres associated with the rehabilitation at Kloof
and Driefontein. Total cash costs at the South African operations increased
26 per cent from R121,984 per kilogram (US$488 per ounce) to R153,581
per kilogram (US$617 per ounce).
Operating costs at the international operations, including gold-in-process
movements, increased from R1,534 million (US$199 million) to R1,682
million (US$217 million) in the September quarter, an increase of 10 per cent.
More than half of the 10 per cent increase was attributable to the increase in
power costs in Ghana, with the balance due to fuel, explosive and cyanide
price increases. In Australia, operating costs increased 7 per cent quarter on
quarter due to the full quarter application of the St Ives volume net smelter
royalty, increases in power and reagent costs and an increase in
underground volumes at both St Ives and Agnew. Total cash costs at the
international operations increased by 18 per cent from US$522 per ounce in
the June quarter to US$616 per ounce in the September quarter.
SOUTH AFRICAN RAND
Salient features
UNITED STATES DOLLARS
Quarter
Quarter
September
2007
June
2008
September
2008
September
2008
June
2008
September
2007
30,661 26,896 24,817
kg Gold produced*
oz
(000)
798
865 986
98,465 125,359 153,461
R/kg
Total cash costs
$/oz
617
502 431
161,056 217,065 226,120
R/kg
Notional cash expenditure
$/oz
909
869 706
12,350 12,259 12,698
000 Tons milled 000
12,698
12,259 12,350
155,333 223,568 217,586
R/kg Revenue $/oz
874
895 680
267 306 333
R/ton Operating costs $/ton
43
39 38
1,716 2,721 1,574
Rm Operating profit $m
203
355 242
34 42 27
% Operating margin %
27
42 34
429 843 39
Rm
Net earnings
$m
5
105 60
66 129 6
SA c.p.s.
US c.p.s.
1
16 9
411 881 39
Rm
Headline earnings
$m
5
111 58
63 135 6
SA c.p.s.
US c.p.s.
1
17 9
409 943 120
Rm
Net earnings excluding gains
and losses on foreign exchange,
financial instruments,
exceptional items and share of
loss of associates after taxation
$m
16
123 58
63 144 18
SA c.p.s.
US c.p.s.
2
19 9
* Attributable – All companies wholly owned except for Ghana (71.1%) and Cerro Corona (80.7%).
#
Prior period operational results have been restated to exclude the discontinued assets sold during the December 2007 quarter i.e. the Venezuelan assets (Choco 10).
GOLD FIELDS RESULTS Q1F2009 I 2
Notional cash expenditure (NCE)
Notional cash expenditure is defined as operating costs plus capital
expenditure and is reported on a per kilogram and per ounce basis – refer the
detailed table on page 16 of this report. The objective is to provide the all-in
costs for the Group and for each operation before royalties and greenfields
exploration expenditure. The NCE per ounce is an important measure as it
determines how much free cash flow is generated before taxation. One of
Gold Fields’ objectives is to manage directly its NCE per ounce and thereby
focus on free cash flow.
The NCE for the Group for the September quarter amounted to R226,120 per
kilogram (US$909 per ounce) compared with R217,065 per kilogram
(US$869 per ounce) in the June quarter, an increase of 4 per cent. These
figures include project expenditure at Cerro Corona. This increase results
from the decrease in gold produced and increase in operating costs, partly
offset by the decrease in capital expenditure as we move towards completing
our growth projects at Cerro Corona, Tarkwa and St Ives.
At the South African operations the NCE increased from R180,712 per
kilogram (US$723 per ounce) in the June quarter to R212,742 per kilogram
(US$855 per ounce) in the September quarter. At the international
operations (including Cerro Corona) the NCE decreased quarter on quarter
from US$1,109 per ounce to US$981 per ounce.
Operating margin
The net effect of the changes in revenue and costs, after taking into account
gold-in-process movements, was a 42 per cent decrease in operating profit
from R2,721 million (US$355 million) to R1,574 million (US$203 million). The
Group operating margin was 27 per cent. The margin at the South African
operations decreased from 43 per cent to 26 per cent, while the margin at the
international operations decreased from 41 per cent to 30 per cent.
Amortisation
Amortisation increased from R778 million (US$100 million) in the June
quarter to R902 million (US$116 million) in the September quarter. At the
South African operations amortisation increased from R390 million (US$50
million) to R462 million (US$60 million). This was mainly due to a R50 million
credit in the June quarter at South Deep to reverse over provisions at year
end and an increase of R30 million quarter on quarter at Kloof due to an
acceleration in amortisation of short life ore reserve development. This was
partially offset by a decrease in normal amortisation because of the lower
gold production. At the international operations amortisation increased by
R50 million from R352 million (US$46 million) to R402 million (US$52 million)
mainly due to the addition from Cerro Corona of R31 million (US$4 million),
an increase in rates at Tarkwa and at St Ives, due to increased mining from
Cave Rocks and Belleisle, partially offset by lower production from the
Damang pit cutback.
Other
Net interest paid was R112 million (US$14 million) for the September quarter
compared with R15 million (US$2 million) in the June quarter. This increase
was due to increased interest paid at the South African operations because
of the higher debt levels and a reduction in the capitalization on qualifying
interest.
The share of loss of associates after taxation increased by R72 million
(US$10 million) from R32 million (US$4 million) in the June quarter to R104
million (US$14 million) in the September quarter. This increase relates to
further losses incurred by Rusoro.
The loss on foreign exchange decreased from R7 million (US$1 million) in the
June quarter to R6 million (US$1 million) in the September quarter. Both
result from the conversion of offshore cash holdings into the functional
currency i.e. rands.
The loss on financial instruments for the quarter at R56 million (US$7 million)
compares with a gain of R2 million (US$ nil) in the June quarter. The loss in
the September quarter was mainly due to a mark to market loss on a diesel
hedge in Ghana and Australia which amounted to R37 million (US$5 million)
and R16 million (US$2 million) respectively.
Other costs increased from R76 million (US$10 million) to R115 million
(US$15 million) mainly due to the increase in share based payments. The
2008 allocations were accounted for in full this quarter as opposed to only
one month included in the June quarter and increased research and
development on the drive to increase the use of technology in the Group.
Exploration
Exploration expenditure, decreased from R107 million (US$14 million) in the
June quarter to R68 million (US$9 million) in the September quarter. This
decrease was due to lower expenditure in Australia due to timing, mainly at
Lachlan and Mt Carlton and the fact that exploration expenditure tends to
vary in line with activity. Refer to the Exploration and Corporate
Development section for more detail.
Exceptional items
The exceptional gain in the September quarter amounted to R114 million
(US$15 million) compared with a loss of R95 million (US$17 million) in the
June quarter. The gain in the September quarter relates to a R132 million
(US$17 million) insurance claim, partially offset by an additional R18 million
(US$2 million) restructuring costs, both at South Deep. The loss in the June
quarter comprised mainly a R65 million (US$8 million) provision for
restructuring costs at South Deep and impairment of assets of R51 million
(US$7 million) in Australia. This was partially offset by the reversal of an over
provision of R21 million (US$3 million) on the 9 shaft project at Driefontein.
Taxation
Taxation for the quarter amounted to R257 million (US$33 million) compared
with R664 million (US$87 million) in the June quarter. The decrease reflects
the decrease 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.
Earnings
Net profit attributable to ordinary shareholders amounted to R39 million
(US$5 million) or 6 SA cents per share (US$0.01 per share), compared with
R843 million (US$105 million) or 129 SA cents per share (US$0.16 per
share) in the June quarter.
Headline earnings i.e. earnings less the after tax effect of asset sales,
impairments, the sale of investments and discontinued operations, was R39
million (US$5 million) or 6 SA cents per share (US$0.01 per share),
compared with earnings of R881 million (US$111 million) or 135 SA cents per
share (US$0.17 per share) in the June quarter.
Earnings excluding exceptional items as well as net gains and losses on
foreign exchange, financial instruments, loss of associates after taxation and
discontinued operations amounted to R120 million (US$16 million) or 18 SA
cents per share (US$0.02 per share), compared with earnings of R943 million
(US$123 million) or 144 SA cents per share (US$0.19 per share) reported in
the June quarter.
Cash flow
The cash outflow from operating activities for the quarter amounted to R32
million (US$1 million), compared with a cash inflow of R2,568 million
(US$334 million) in the June quarter. This quarter on quarter decrease of
R2,600 million (US$335 million) is due mainly to the decrease in profit before
tax of R1,287 million (US$166 million), a working capital outflow of R577
million (US$75 million) in the September quarter compared with an inflow of
R263 million (US$36 million) in the June quarter and an increase in taxation
paid from R195 million (US$28 million) to R913 million (US$115 million). The
net increase in working capital of R840 million (US$111 million) was mainly
due to the payment of creditors at Cerro Corona raised at June year end and
funding of working capital needs.
As expected, capital expenditure decreased from R2,525 million (US$327
million) in the June quarter to R1,813 million (US$234 million) in the
September quarter. Cerro Corona accounted for 75 per cent of this
decrease.
At the South African operations capital expenditure decreased from R913
million (US$118 million) in the June quarter to R788 million (US$102 million)
in the September quarter. This decrease of R125 million was mainly as a
result of the cessation of the Driefontein 9 shaft project and expenditure on
equipment for mechanised development at South Deep incurred in the
previous quarter. Expenditure on ore reserve development at Driefontein,
Kloof, and Beatrix accounted for R76 million (US$10 million), R143 million
(US$18 million), and R92 million (US$12 million) respectively. Expenditure
on the new mine development at South Deep continued and amounted to
R70 million.
At the international operations capital expenditure decreased from R1,605
million (US$209 million) to R1,014 million (US$131 million). This was mainly
due to reduced capital expenditure of R520 million (US$66 million) at Cerro
Corona as the project moves through commissioning into full production. In
Ghana, expenditure at Tarkwa increased by R33 million (US$3 million)
mainly on the CIL plant (US$5 million) and additions to the primary mining
fleet (US$15 million), partially offset by lower expenditure on sundry mining
and metallurgical equipment (US$7 million). In Australia, capital expenditure
decreased by R89 million (A$12 million) due to the completion of the Belleisle
development and timing of on-mine development of R42 million (A$6 million)
at St Ives, and a decrease of R47 million (A$6 million) at Agnew on
accommodation costs at Leinster, which was paid for in the June quarter.
Capital expenditure at the Cerro Corona mine in Peru amounted to R168
million (US$22 million) in the September quarter compared with R687 million
(US$88 million) in the June quarter. Cumulative expenditure to date amounts
to US$510 million and is estimated at between US$540 million to US$550
million at project completion.
3 I GOLD FIELDS RESULTS Q1F2009
Purchase of investments in the September quarter amounted to R87 million
(US$11 million) mainly for the acquisition of 2.6 million shares in Sino Gold
Ltd. required to take our total interest to 19.9 per cent. Purchase of
investments in the June quarter amounted to R708 million (US$97 million)
and included the acquisition of shares in Sino Gold Ltd., Conquest Mining
Ltd. and Orsu Metals Corp. (formerly Lero Gold Company).
Net cash inflow from financing activities in the September quarter amounted
to R2,598 million (US$336 million). This included loans received in the
September quarter to fund capital expenditure at Cerro Corona and South
Deep, tax payments in South Africa and due to funding of short term working
capital needs. Repayments of South African rand loans amounted to R693
million (US$90 million). Net cash inflow from financing activities in the June
quarter amounted to R1,095 million (US$143 million). Loans received
amounted to R1,165 million (US$150 million) to fund the purchase of offshore
investments and capital funding for Cerro Corona. Loan repayments of
South African rand loans amounted to R850 million (US$105 million). A
rights issue at Cerro Corona amounting to US$96 million (R768 million) was
accounted for during the June quarter, all of this money having been raised
from the minority shareholders in this project following the capitalisation of
cumulative shareholder loan funding from Gold Fields into equity.
Net cash outflow for the quarter was R126 million (US$14 million) compared
with a net cash inflow of R19 million (US$6 million outflow) in the June
quarter. After accounting for a negative translation adjustment of R63 million
(US$8 million), the cash balance at the end of September was R1,818 million
(US$229 million). The cash balance at the end of June was R2,007 million
(US$251 million).
Balance sheet (Investment and net debt)
Investments decreased from R5,704 million (US$713 million) at 30 June
2008 to R4,861 million (US$613 million) at 30 September 2008. This
decrease was due to a mark to market loss on the Gold Fields share
portfolio. These mark to market losses have been accounted for under
equity.
Net debt (long-term loans plus current portion of long-term loans less cash
and deposits) has increased from R4,991 million (US$624 million) at 30 June
2008 to R7,756 million (US$978 million) at 30 September 2008. This
increase in total debt is as a result of borrowings incurred to fund capital
expenditure at Cerro Corona and South Deep, tax payments at the South
African operations and funding of working capital needs mainly at Cerro
Corona.
Detailed and operational review
South African operations
Cost and revenue optimisation initiatives
During financial 2008, the South African operations reviewed the suite of
projects under Project 500 and identified the following for implementation
over the next two to five years.
Project 1M
Project 1M is a productivity initiative that aims to stop the decline in face
advance and increase that advance by an extra metre by the end of financial
2010, through the following key improvement initiatives in:
· drilling and blasting practices.
· cleaning and sweeping practices.
· cycle mining and training.
Project 2M
Project 2M is a technology initiative aimed at mechanising all flat-end
development at the long-life shafts by financial 2010. The aim of the project
is to improve safety, productivity and increase reserve flexibility. It targets a
mechanisation rate of 43 per cent of flat-end development in financial 2009,
reaching 100 per cent by 30 June 2010. During the quarter 25 per cent of
flat-end development was achieved with mechanised equipment and
machinery.
Project 3M
Project 3M is a suite of projects focused on reducing energy and utilities
consumption, work place absenteeism and surface (“above-ground”) costs
which includes cost savings initiatives and enhancing the procurement
processes.
The energy and utilities projects, comprising power, diesel and the related
consumption of air and water, targets savings of R130 million by financial
2010, through a 10 per cent reduction in power consumption and a 20 per
cent reduction in diesel; R70 million in financial 2009 and R60 million in
financial 2010. These savings are against the baseline consumption for the
fiscal year 2008.
Reducing energy and utility consumption at the operations mitigates the
safety risk to employees of interruptible power supply, maintains integrity of
equipment and machinery and minimises the erosion of operating margins
arising from higher tariffs and oil prices.
Some of the key initiatives include on-line monitoring of power consumption,
improved main fan vane controls, energy efficient lighting and pumping,
replacement of compressed air drills with electric drills at long life shafts and
reducing air and water wastage through stope shut-off valves. In the case of
diesel, stricter controls have been enforced, supported by the continued
replacement of diesel locos with battery locos and upgrading of the old
surface vehicle fleet.
The savings from these projects during the quarter amounted to R36 million,
comprising R35 million on power and R1 million on diesel. The average
power consumed for the quarter was 4 per cent below the baseline. The
average diesel consumed was 3 per cent lower than the baseline.
The management of work place absences project (“Unavailables project”)
aims to reduce the impact on lost production and costs arising from work
place absenteeism.
This project aims to reduce work place absenteeism by 4 per cent by 2010,
from 12 per cent currently to 8 per cent, with a target of 2 per cent in each of
financial 2009 and 2010. This will be achieved through a series of
aggressive initiatives to reduce unnecessary time spent by employees in
training, induction and the engagement and health care assessment
processes, through the creation of the one-stop engagement and health
assessment centre for the West Wits operations. Stricter controls have been
implemented to manage absenteeism and the abuse of sick leave, whilst the
wellness programmes, which aim at promoting employee fitness and a
healthy lifestyle, will continue. Improving employee and union relations
remains critical to reducing the impact of work place absenteeism due to
strikes or stay-ways.
Unavailables for the quarter were 2 per cent above the target largely due to
the impact of the COSATU stay-way, increased training at the operations in
line with the Group’s safety initiatives, coupled with the on-going productivity
team-training programmes.
The above-ground cost project aims to reduce above-ground costs by at least
R100 million per annum. Various initiatives are in place, including a review of
above-ground surface labour, improved workshop performance, more
effective salvage and reclamation programmes, enhancing the procurement
processes and more efficient management of stores through a vigorous
application of standards and norms. During the quarter R32 million cost
savings were realised under this project as follows:
· Contracted capital and working cost benefits of R7 million were achieved
from rise-and-fall fuel price reductions, from competitive bulk steel products
and professional services tenders, as well as delayed payment terms on
loco drill rigs, cable price reductions, improved quality on medium voltage
motors repairs and savings due to improved standards on multi-stage
pumps.
· R13 million cost avoidance benefits were negotiated on steel products,
explosives and accessories, blasting barricades, drilling systems, electric
cables, cementation and litigation settlement expenses. The capital portion
of the cost avoidance benefits was achieved mainly through steel forward
orders early in financial 2008, delivered during the September quarter.
· In addition, R12 million benefits were achieved through settlement
discounts and efficiency related savings in commercial services.
International operations
Integrated continuous improvement initiatives and
strategic sourcing / contracts benefits achieved
Due to the slowdown in global demand during the September quarter
international operations saw diesel related rise-and-fall claw-back benefits
which are expected to continue into the December quarter. A weaker
Australian exchange rate might potentially soften the diesel rise-and-fall
savings claw-back to some extent. Both Australia and Ghana has made
good progress over the last quarter through contractor mining joint
optimisation initiatives. Consolidated total cost contracted and realised
benefits of around US$7 million were achieved across the international
operations for the quarter.
Continuous improvement benefits and value add
highlights per region:
Australia
September quarter diesel rise-and-fall price reductions resulted in A$800
thousand savings in Australia. Around A$5 million additional contracted and
realised benefits were achieved through underground improvement projects
GOLD FIELDS RESULTS Q1F2009 I 4
and power recovery costs at St Ives. Furthermore due to long term strategic
partnerships and aligned vendor focus, the Australian operations remained
unaffected by the Western Australian power short-supply period.
During the December quarter the underground project opportunity
assessment at St Ives will be completed and the remaining projects initiated
to improve key areas, such as maintenance and quality mining. The surface
and underground mining contracts both expire during financial 2009. Work is
being undertaken to identify improvements to each contract to determine if
the contracts should be rolled over.
Ghana
Diesel rise-and-fall price reductions in Ghana added around US$1.2 million
savings during the September quarter. At Damang, good progress was
made in identifying opportunities for total cost reduction through improved
mining sequences and logistics performance.
For the December quarter the key focus will be on contractor and cost
reductions at Damang, the commissioning of the new emulsion plant and a
review of key maintenance and repair contracts at Tarkwa.
Peru
The September quarter commenced with the successful hand over of all mine
development project contract commitments and open orders. New teams
and capabilities were established for on-site management, outbound
transport, storage, loading and ship brokering of concentrate. A major
milestone was achieved when the first concentrate was produced,
transported to the Salaverry Port and shipped successfully. Concentrate
logistics performance management processes were implemented to ensure
continuous risk and optimisation reviews.
During the December quarter added focus will be on reviewing explosives
value added services and diesel consolidation opportunities.
South African operations
Royalty bill
The Mineral and Petroleum Resources Royalty Bill was introduced into
Parliament by the Minister of Finance on 26 June 2008. National Treasury
released an Explanatory Memorandum relating to the Bill on 20 August 2008
for final comment by 17 October 2008. The previous formula has been
changed from EBITDA to EBIT (with 100 per cent capital expenditure taken
into account in the calculation of EBIT). A cap of 5 per cent has also been
introduced for refined minerals (gold and platinum) with a surcharge add-on
in the formula of 0.5 per cent. The Bill comes into effect on 1 May 2009.
Driefontein
September
2008
June
2008
Gold produced
- kg
6,428
6,786
-
000’ozs
206.7
218.2
Yield - underground
- g/t
8.1
8.2
- combined
- g/t
4.2
4.4
Total cash costs
- R/kg
130,149
103,537
-
US$/oz
523
414
Notional cash expenditure - R/kg
169,306
153,905
-
US$/oz
680
616
Gold production decreased by 5 per cent from 6,786 kilograms (218,200
ounces) in the June quarter to 6,428 kilograms (206,700 ounces) in the
September quarter in line with the previous guidance. The decrease in
production was directly attributable to the decision to address backlog
secondary support. Underground yield decreased from 8.2 grams per ton to
8.1 grams per ton for the quarter as a result of the backlog secondary support
programme, as higher grade areas at 4 shaft and 5 shaft were temporarily
unavailable. The labour build-up at 6 shaft is progressing to plan and the first
gold production is expected in the December quarter. Gold production from
10 shaft will continue on a cleaning and reclamation basis only, as no
physical mining will take place following the safety review of pillar mining.
Surface yield remained constant at 0.7 grams per ton. Underground tonnage
decreased from 760,000 tons in the June quarter to 724,000 tons in the
September quarter due to the backlog secondary support programme. The
reduction in underground tonnage was partially offset by an increase in
surface tonnage from 785,000 tons to 812,000 tons.
Main development decreased by 41 per cent for the quarter and on-reef
development decreased by 31 per cent, mainly as a result of the
development crews being utilised to assist with the backlog secondary
support programme at the high grade 1, 4 and 5 shafts. Most of the on-reef
development for the quarter was done in prospecting areas at the lower
grade 8 shaft due to the unavailability 1, 4 and 5 shafts for on-reef
development. This resulted in a decrease of 35 per cent in the average
development value to 833 cm.g/t.
Operating costs increased 19 per cent, from R742 million (US$95 million) to
R881 million (US$114 million). The increase in operating cost is attributable
to the annual wage increase, the 20 per cent electricity price increase and
two higher winter tariff months, the reduction in the capitalisation of off-reef
development costs due to lower off-reef development because of the focus
on backlog secondary support and the cost of the backlog secondary
support. Total cash costs increased 26 per cent, from R103,537 per kilogram
to R130,149 per kilogram and from US$414 per ounce to US$523 per ounce
respectively.
Operating profit decreased from R785 million (US$103 million) in the June
quarter to R509 million (US$66 million) in the September quarter as a result
of the increase in operating costs, the decrease in production and the lower
gold price received.
Capital expenditure decreased from R303 million (US$39 million) to R207
million (US$27 million), in line with the forecast. This decrease was mainly
due to decreased expenditure on the mothballed 9 shaft project (R67 million),
ore reserve development (R21 million) and a lower spending on new
technology and other sustaining projects (R8 million).
Notional cash expenditure increased from R153,905 per kilogram (US$616
per ounce) to R169,306 per kilogram (US$680 per ounce) due to the
increased operating cost and decrease in gold output, partially offset by a
decrease in capital expenditure.
The forecast for the December quarter is as follows:
· Gold produced – 6,500 kilograms (209,000 ounces)
· Total cash costs* – R130,000 per kilogram (US$505 per ounce)
· Capital expenditure* – R250 million (US$31 million)
· Notional cash expenditure* – R174,000 per kilogram (US$675 per ounce)
* Based on an exchange rate of US$1 = R8.00.
Gold production is expected to be slightly higher than the previous quarter
mainly due to production areas becoming available for mining after the
backlog secondary support is installed and the build-up at 6 shaft to full
production, partially offset by the stoppage of mining activities due to the
double fatality which occurred on 15 October 2008. Total cash costs are
expected to be marginally lower. The increase in capital expenditure is due
to increased expenditure on the tailings uranium project, the water plant
project, emergency power generation, new technology projects and housing
upgrades. The lower expenditure on capitalised development costs due to
the focus on secondary support is expected to continue in the December
quarter.
Kloof
September
2008
June
2008
Gold produced
- kg
4,871
5,577
-
000’ozs
156.6
179.3
Yield - underground
- g/t
7.7
7.5
- combined
- g/t
5.0
4.9
Total cash costs
- R/kg
153,747
119,240
-
US$/oz
618
477
Notional cash expenditure - R/kg
210,142
167,940
-
US$/oz
844
672
Gold production decreased by 13 per cent from 5,577 kilograms (179,300
ounces) in the June quarter to 4,871 kilograms (156,600 ounces) in the
September quarter. This is 25 per cent higher than the market guidance
given for the September quarter due to better logistical planning for
movement of people, material and ore in the remainder of the mine to
accommodate the Main shaft rehabilitation programme. The decrease in
production compared with the previous quarter was mainly due to the
stoppage at Main shaft for repairs from the end of July 2008. This is planned
to be completed by the end of December 2008. The fatal at 1 shaft, the one
day protected labour stay-away organised by COSATU and to a lesser extent
a fire at 7 shaft also caused additional production stoppages.
Underground tonnage decreased from 688,000 tons to 603,000 tons and
surface tons milled decreased from 455,000 tons to 368,000 tons. The
benefit of intensified underground sweeping and vamping initiatives realised
a 3 per cent higher underground grade from 7.5 grams per ton to 7.7 grams
per ton and the combined grade also benefited from lower surface volumes.
5 I GOLD FIELDS RESULTS Q1F2009
Total main development decreased by 13 per cent for the quarter while on-
reef development was similar to the previous quarter. The on-reef
development value was 17 per cent higher for this quarter. Off-reef
development was lower as a result of the logistical constraints due to the
Main shaft rehabilitation programme.
Operating costs increased by 13 per cent from R694 million (US$89 million)
in the June quarter to R785 million (US$101 million) in the September
quarter. September quarter costs include higher labour costs due to annual
wage increases, increased electricity cost as a result of the 20 per cent price
increase and two higher winter tariff months, increased commodity, steel and
fuel costs and lower off-reef development capitalised. As a consequence of
the higher costs and the lower gold output total cash cost increased 30 per
cent from R119,240 per kilogram to R153,747 per kilogram. In US dollar
terms, total cash costs increased from US$477 per ounce to US$618 per
ounce.
Operating profit decreased from R558 million (US$72 million) to R274 million
(US$35 million) mainly due to the lower production, increased costs and the
lower gold price.
Capital expenditure at R238 million (US$31 million) decreased by 2 per cent
compared with the previous quarter’s expenditure of R242 million (US$28
million). The Main shaft rehabilitation programme is expected to cost R78
million (US$10 million) and is on schedule for completion by the end of
December.
Notional cash expenditure increased from R167,940 per kilogram to
R210,142 per kilogram due to the increase in costs and the lower gold
production.
The forecast for the December quarter is as follows:
· Gold produced – 4,200 kilograms (135,000 ounces)
· Total cash costs* – R179,000 per kilogram (US$697 per ounce)
· Capital expenditure* – R270 million (US$34 million)
· Notional cash expenditure* – R251,000 per kilogram (US$976 per ounce)
* Based on an exchange rate of US$1 = R8.00.
Gold production for the December quarter is better than guidance provided at
half year and forecast to decrease by about 14 per cent compared with the
September quarter because of the full impact of the Main shaft repair
programme and to a lesser extent the disruption caused by the underground
fire at 7 shaft. The Main shaft repair programme started early in August
resulting in only two months of reduced production in the September quarter
compared with a full quarters production loss forecast for the December
quarter. Total cash cost will increase in the December quarter as a result of
the lower gold production. Capital expenditure is planned to increase to
R270 million (US$34 million) mainly due to the Main shaft repairs.
Beatrix
September
2008
June
2008
Gold produced
- kg
3,156
3,678
-
000’ozs
101.5
118.3
Yield -
g/t 4.0
4.7
Total cash costs
- R/kg
150,982
119,467
-
US$/oz
607
478
Notional cash expenditure - R/kg
206,622
166,096
-
US$/oz
830
665
Gold production at Beatrix decreased by 14 per cent from 3,678 kilograms
(118,300 ounces) in the June quarter to 3,156 kilograms (101,500 ounces) in
the September quarter. This is lower than the guidance due to the lower
Mine Call Factor (MCF) during the quarter. Tons milled increased from
778,000 tons to 790,000 tons and yield decreased from 4.7 grams per ton in
the June quarter to 4.0 grams per ton for the September quarter due to a
lower MCF. During September month the mined volumes and MCF reverted
to planned levels.
Development metres also showed a quarter on quarter reduction, with total
main development decreasing by 4 per cent to 9,260 metres and main on-
reef development at 1,620 metres, which is 339 metres or 17 per cent lower
than the previous quarter. Main development values were 2 per cent lower at
795 cmg/t as a result of the majority of raises traversing lower grade areas in
the short term as anticipated by local geological models.
Operating costs quarter on quarter increased by 9 per cent, from R460 million
(US$59 million) to R499 million (US$65 million). The increase in costs was
mainly due to annual wage increases, increased material usage and higher
electricity costs arising from the 20 per cent price increase and the two higher
winter tariff months in the quarter. Total cash costs increased by 26 per cent
from R119,467 per kilogram in the June quarter to R150,982 per kilogram in
the September quarter, mainly due to lower gold output and cost increases.
In US dollar terms total cash costs increased by 27 per cent from US$478 per
ounce to US$607 per ounce.
Beatrix posted an operating profit of R127 million (US$16 million) for the
quarter compared with R372 million (US$50 million) in the June quarter.
Capital expenditure was similar quarter on quarter at R154 million (US$20
million).
Notional cash expenditure increased from R166,096 per kilogram (US$665
per ounce) to R206,622 per kilogram (US$830 per ounce).
The forecast for the December quarter is as follows:
· Gold produced – 3,450 kilograms (111,000 ounces)
· Total cash costs* – R141,000 per kilogram (US$547 per ounce)
· Capital expenditure* – R165 million (US$21 million)
· Notional cash expenditure* – R195,000 per kilogram (US$756 per ounce)
* Based on an exchange rate of US$1 = R8.00.
The decrease in total cash costs in the December quarter forecast is mainly
as a result of increased gold output.
International operations
Ghana
Tarkwa
September
2008
June
2008
Gold produced
- 000’ozs
156.3
168.6
Yield - heap leach
- g/t
0.7
0.8
- CIL plant
- g/t
1.6
1.6
- combined
- g/t
0.9
1.0
Total cash costs
- US$/oz
548
443
Notional cash expenditure - US$/oz
1,029
856
Gold production for the September quarter decreased by 7 per cent from
168,600 ounces to 156,300 ounces. The decrease in production was mainly
due to a decrease in yield as a result of a build-up of gold-in-process (GIP) in
the South heap leach pads. Tons processed were in line with the previous
quarter at 5.5 million tons. Combined yield decreased from 1.0 gram per ton
to 0.9 grams per ton.
Total tons mined, excluding capital stripping, increased from 20.6 million tons
to 24.2 million tons due to an improvement in fleet efficiencies after the radial
tyre shortages experienced during the previous quarter was addressed. Ore
mined increased from 4.8 million tons to 5.5 million tons in the September
quarter. The achieved head grade reduced from 1.29 grams per ton to 1.21
grams per ton. The overall strip ratio for the quarter was higher at 4.58
compared with 4.37 in the June quarter
Total feed to the heap leach sections increased from 4.07 million tons for the
June quarter to 4.15 million tons. Heap Leach yield for the quarter decreased
from 0.8 grams per ton for the June quarter to 0.7 grams per ton in the
September quarter, due to the GIP build-up in the South heap leach. As a
result the heap leach sections produced 88,000 ounces, 10 per cent lower
than the 97,700 ounces produced in the June quarter. This gold build-up is
expected to be recovered as irrigation on the heaps returns to normal after
stacking on these heaps is completed towards the end of the calendar year.
Effective completion of stacking at the South heap leach will match the ramp-
up of the CIL expansion.
The total feed to the CIL plant was 1.35 million tons compared with 1.40
million tons in the June quarter. The lower feed was as a result of the CIL
expansion tie-in activities that impacted on plant availability. CIL yield was
1.6 grams per ton similar to the June quarter. The CIL plant produced 68,200
ounces in the September quarter compared with 70,900 ounces in the
previous quarter.
Operating costs, including gold-in-process movements, increased from
US$76 million (R585 million) in the June quarter to US$86 million (R664
million) in the September quarter. Over US$6 million of this increase was
attributable to Government increases in power tariffs effective from 1 July
2008. A reduction in these power tariffs is being negotiated. The balance of
the increase was mainly due to fuel and explosives price increases.
GOLD FIELDS RESULTS Q1F2009 I 6
Operating profit was 33 per cent lower at US$50 million (R388 million)
compared with US$75 million (R575 million) in the June quarter.
Capital expenditure increased from US$69 million (R523 million) to US$72
million (R556 million) for the quarter, with expenditure on the CIL expansion
(US$36 million), primary mining equipment (US$15 million) and pre-stripping
at the Teberebie cutback (US$13 million) being the major capital
expenditures for the quarter.
Notional cash expenditure for the quarter increased from US$856 per ounce
to US$1,029 per ounce and included the effect of the high capital expenditure
on the mill expansion, now nearing completion.
The forecast for the December quarter is as follows:
· Gold produced – 150,000 ounces
· Total cash costs – US$580 per ounce
· Capital expenditure – US$62 million
· Notional cash expenditure – US$995 per ounce
Gold production is expected to decrease in the December quarter compared
with the September quarter due to the integration of the new plant and
completion of the South heap leach facility. The CIL commissioning is
planned for December. Unit cash costs are expected to increase due to the
lower gold production and the flow through of reduced fuel prices, based on
lower world oil prices, which will only be realised towards the end of
December.
Damang
September
2008
June
2008
Gold produced
- 000’ozs
44.0
50.0
Yield
- g/t
1.2
1.5
Total cash costs
- US$/oz
790
578
Notional cash expenditure - US$/oz
895
773
Gold production decreased 12 per cent from 50,000 ounces in the June
quarter and against guidance, to 44,000 ounces in the September quarter.
This was mainly due to the unavailability of the pebble crusher, resulting in
additional feed of low grade oxide material to balance the mill-feed blend,
resulting in a decline in yield from 1.5 grams per ton to 1.2 grams per ton.
Although there were sets of critical spares on site, these failed upon
installation and the replacement original equipment manufacturer (OEM)
parts were only received in the latter half of the quarter.
Total tons mined, including capital stripping, reduced by 5 per cent from 6.53
million tons in the June quarter to 6.22 million tons in the September quarter.
Ore mined also decreased from 1.24 million tons to 1.13 million tons. The
strip ratio increased from 4.29 in the June quarter to 4.51 in the September
quarter.
The mill throughput for the quarter increased from 1.06 million tons achieved
in the June quarter to 1.14 million tons in the September quarter. This was
due to a softer blend feed to the plant during the rebuilding of the pebble
crusher. Despite this, the lower grade resulted in less gold produced.
Operating costs, including gold-in-process movements increased from US$29
million (R225 million) to US$35 million (R276 million). The increase in costs
was mainly attributable to a government imposed increase in power tariffs
effective from 1 July 2008, and increases in diesel and cyanide costs. Total
cash costs increased from US$578 per ounce to US$790 per ounce reflecting
the reduction in production and increase in costs.
Operating profit for the September quarter at US$3 million (R26 million) was
81 per cent lower than the US$16 million (R120 million) achieved in the June
quarter.
Capital expenditure at US$4 million (R30 million) was slightly lower than the
US$6 million (R45 million) spent in the June quarter, with the majority of this
expenditure on the Damang pit cutback, dewatering and plant pebble crusher
maintenance.
Notional cash expenditure for the quarter was US$895 per ounce compared
with the previous quarter’s US$773 per ounce mainly as a result of the
increase in power costs and the lower production.
The forecast for the December quarter is as follows:
· Gold produced – 50,000 ounces
· Total cash costs – US$630 per ounce
· Capital expenditure – US$5 million
· Notional cash expenditure – US$740 per ounce
Gold production is expected to increase in the December quarter compared
with the September quarter due to the return of hard rock feed as the pebble
crusher returns to production. Resulting yields should improve as a
consequence of the improved mill feed blend.
Australia
St Ives
September
2008
June
2008
Gold produced
- 000’ozs
101.2
101.5
Yield - heap leach
- g/t
0.4
0.5
- milling
- g/t
2.5
2.5
- combined
- g/t
1.7
1.8
Total cash costs
- A$/oz
786
702
-
US$/oz
708
663
Notional cash expenditure - US$/oz
986
971
Gold produced remained steady at 101,200 ounces in the September quarter
compared with 101,500 ounces in the June quarter. This performance was
significantly below the guidance due to the slow ramp-up of Cave Rocks and
poor grade reconciliation from Argo underground. Improved output is
expected from Cave Rocks during the December quarter due to the
completion of the ventilation system. At Argo, a new mining method was
implemented at the start of the September quarter with a reduction in dilution
in flat stopes expected by the end of the December quarter.
Gold produced from the Lefroy mill decreased slightly from 92,600 ounces to
92,200 ounces due to mill blend. Tons milled and yield were virtually
unchanged at 1.17 million tons and 2.5 grams per ton respectively.
Gold produced from heap leach increased from 8,900 ounces in the June
quarter to 9,000 ounces in the September quarter. Tons treated from heap
leach increased from 567,000 tons to 646,000 tons and recoveries remained
constant at around 53 per cent. Yield decreased from 0.5 grams per ton to
0.4 grams per ton due to an increase in the proportion of lower grade fresh
ore mined from the Leviathan pit cutback.
At the open pit operations 1.4 million tons of ore were mined for the quarter,
compared with 1.2 million tons of ore in the June quarter. The Cave Rocks
and Blue Lode open pits were completed. Grade decreased from 1.9 grams
per ton to 1.7 grams per ton. The average strip ratio including capital waste
was 4.7 in the September quarter, compared with 5.8 in the June quarter.
At the underground operations 248,000 tons of ore were mined at 4.7 grams
per ton for the quarter, compared with 183,000 tons of ore mined at 5.2
grams per ton for the June quarter. The increase in volume was mainly from
the new underground operations at Belleisle and Cave Rocks and from Argo,
where the paste fill delays reported in the prior quarter have been resolved.
Belleisle achieved full production levels during the September quarter.
Operating costs, including gold-in-process movements, increased from A$73
million (R527 million) in the June quarter to A$81 million (R565 million) in the
September quarter. This increase was mainly due to the first full quarter
application of the 4 per cent net smelter royalty of A$4 million which applies
to produced ounces and increased underground mining costs due to the 36
per cent increased volumes from underground. Total cash costs increased
from A$702 per ounce (US$663 per ounce) to A$786 per ounce (US$708 per
ounce).
Operating profit decreased from A$23 million (R173 million) to A$19 million
(R133 million) in line with the increased costs and the decrease in the
Australian gold price from A$990 per ounce to A$949 per ounce.
Capital expenditure decreased from A$36 million (R259 million) in the June
quarter to A$30 million (R212 million) in the September quarter. The majority
of this expenditure was spent on mine development (A$21 million - R141
million) and included development activity at Cave Rocks, completion of
infrastructure development at Belleisle underground mine, the continuation of
development at Argo and waste stripping at the future Agamemnon South
and Grinder pits. Exploration expenditure at A$8 million (R54 million)
includes an increased focus on Athena.
Notional cash expenditure increased from A$1,029 per ounce (US$971 per
ounce) in the June quarter to A$1,095 per ounce (US$986 per ounce) in the
September quarter, mainly due to increased operating costs, partially offset
by a reduction in capital expenditure.
7 I GOLD FIELDS RESULTS Q1F2009
The forecast for the December quarter is as follows:
· Gold produced – 110,000 ounces
· Total cash costs* – A$740 per ounce (US$630 per ounce)
· Capital expenditure* – A$28 million (US$24 million)
· Notional cash expenditure* – A$990 per ounce (US$840 per ounce)
* Based on A$1 = US$0.85.
The gold production increase is in line with increased production forecast
from the new underground mines at Cave Rocks and Belleisle. Development
of these new underground mines will continue to remain a focus area to
return production to between 115,000 ounces and 120,000 ounces per
quarter from the March quarter. Total cash costs and notional cash
expenditure are forecast to decrease as a consequence. The mine is
positioned to achieve these production levels in the second half of financial
2009.
Agnew
September
2008
June
2008
Gold produced
- 000’ozs
52.2
54.6
Yield -
g/t 5.3
5.0
Total cash costs
- A$/oz
548
479
-
US$/oz
494
452
Notional cash expenditure - US$/oz
588
662
Gold production decreased 4 per cent from 54,600 ounces in the June
quarter to 52,200 ounces in the September quarter. A 9 per cent decrease in
processing volumes from 339,000 tons in the June quarter to 308,000 tons in
the September quarter, was partially offset by a 5 per cent increase in yield,
from 5.0 gram per ton to 5.3 gram per ton. The higher yield was due to an
improved performance from the Waroonga underground complex with
increased overall tonnages extracted from the complex. The lower
processing volumes were the result of a planned six day maintenance
shutdown at the plant during July.
Ore mined from underground increased 5 per cent from 165,000 tons in the
June quarter to 173,000 tons in the September quarter. Underground mining
achieved a new quarterly production record with an average of almost 58,000
tons per month, against the previous best of 55,000 tons per month in the
previous quarter.
Main Lode production was increased to replace the production from the
completed Songvang stockpiles. This resulted in a decrease of overall grade
mined for the quarter from 10.6 grams per ton to 8.1 grams per ton.
Operating costs, including gold-in-process movements, increased 7 per cent
from A$27million (R197 million) in the June quarter to A$29 million (R203
million) in the September quarter. The increase in operating cost was mainly
due to the increase in ore mined at lower grade, and a release of gold-in-
process stocks. Total cash costs per ounce increased by 14 per cent from
A$479 per ounce (US$452 per ounce) in the June quarter to A$548 per
ounce (US$494 per ounce) in the September quarter.
Operating profit decreased from A$26 million (R179 million) for the June
quarter to A$23 million (R158 million) in the September quarter.
Capital expenditure decreased from A$13 million (R91 million) in the June
quarter to A$7 million (R49 million) for the September quarter. The higher
expenditure in the June quarter related to payments for single persons
accommodation at Leinster.
Notional cash expenditure decreased from A$702 per ounce (US$662 per
ounce) in the June quarter to A$653 per ounce (US$588 per ounce) in the
September mainly due to the decrease in capital expenditure.
The forecast for the December quarter is as follows:
· Gold produced – 46,000 ounces
· Total cash costs* – A$555 per ounce (US$470 per ounce)
· Capital expenditure* – A$14 million (US$12 million)
· Notional cash expenditure* – A$885 per ounce (US$750 per ounce)
* Based on A$1 = US$0.85.
Gold production for the December quarter is expected to reduce due to the
completion of the Songvang stockpiles. Notional cash expenditure per ounce
is expected to increase by 28 per cent with additional capital expenditure of
A$3 million on upgrading catering facilities at Leinster as part of the new
accommodation agreement and focus on underground development at the
Waroonga complex.
Quarter ended 30 September 2008 compared
with quarter ended 30 September 2007
Group attributable gold production decreased by 19 per cent from 986,000
ounces for the quarter ended September 2007 to 798,000 ounces produced
in the September 2008 quarter. These production results and the results
below exclude the results of Choco 10 sold during financial 2008, as these
results are accounted for under discontinued operations.
At the South African operations gold production decreased from 689,000
ounces to 492,000 ounces. Driefontein’s gold production decreased from
260,000 ounces to 207,000 ounces due to the stopping of 6 and 7 shafts
following the Eskom power rationing, the stoppage of 10 shaft due to
increased seismicity, reduced pillar mining for safety reasons, reduced
surface grades and reduced mining due to the focus on backlog secondary
support during the September quarter.
Kloof’s gold production decreased from 235,000 ounces to 157,000 ounces
due to the Main Shaft rehabilitation, normalisation of underground yields at 7
shaft, lower production at 3 shaft following the Eskom power rationing and
reduced pillar mining for safety reasons. Beatrix’s gold production decreased
from 119,000 ounces to 101,000 ounces due to reduced mining volumes and
a lower mine call factor. South Deep’s gold production decreased from
74,000 ounces to 27,000 ounces due to the termination of conventional VCR
mining and the stoppage of the 95 2 West and 3 West projects for
rehabilitation of the main access ramps.
At the international operations total managed gold production increased from
355,000 ounces in September 2007 to 366,000 ounces in September 2008,
including 12,400 equivalent ounces from Cerro Corona. In Ghana, Damang’s
gold production decreased 7 per cent to 44,000 ounces due to a decrease in
mining grade as a result of the failure of the pebble crusher during the
quarter. Tarkwa was marginally higher at 156,000 ounces mainly due to an
increase of available fresh ore tonnage mined and processed. In Australia,
St Ives decreased marginally to 101,000 ounces. The decrease at St Ives
was due to a decrease in head grade (2.04 grams per ton versus 2.12 grams
per ton). Production at Agnew increased by 2 per cent to 52,000 ounces due
to an increase in high grade ore mined from Waroonga underground, partially
offset by lower grade from open pit stock.
Revenue increased by 14 per cent in rand terms (increased 17 per cent in US
dollar terms) from R5,018 million (US$707 million) to R5,724 million (US$740
million). The 40 per cent higher average gold price of R217,586 per kilogram
(US$874 per ounce) compared with R155,333 per kilogram (US$816 per
ounce) achieved in the September 2007 quarter, more than offset the lower
production. The US dollar weakened from US$1 = R7.10 to US$1 = R7.74,
or 9 per cent, while the rand/Australian dollar weakened from A$1 = R6.02 to
R6.97, or 16 per cent, quarter on quarter.
Operating costs, including gold-in-process movements, increased from
R3,302 million (US$465 million) to R4,150 million (US$536 million), an
increase of R848 million (US$71 million) or 26 per cent in rand terms. The
increase in costs was due to wage increases, above inflation price increases
on fuel, steel and cyanide at all the operations and increased power costs in
Ghana and South Africa. Total cash costs for the Group in rand terms,
increased from R98,465 per kilogram (US$431 per ounce) to R153,458 per
kilogram (US$617 per ounce) due to the above factors.
At the South African operations operating costs increased by 17 per cent
from R2,114 million to R2,468 million for the year. This was due to the wage
increases and the increase in certain input costs such as steel, timber,
chemicals, food and power costs, partially offset by the cost saving initiatives
implemented over the year. Unit cash costs at the South African operations
increased from R94,248 per kilogram to R153,581 per kilogram (US$413 per
ounce to US$617 per ounce) as a result of the above cost increases and the
lower production due to a decrease of 6 per cent in underground yield and
the rehabilitation programmes currently underway.
At the international operations, net operating cost increased from R1,188
million (US$167 million) in the June quarter to R1,682 million (US$217
million) in the September quarter, of which R107 million (US$15 million) was
as a result of changes in the exchange rate. In Ghana, the increase in costs
was mainly due to the power increase effective from 1 July 2008 and the
increase in diesel and imported commodities such as cyanide and steel.
Increased costs at St Ives were due to increased production volumes, higher
haulage costs at Cave Rocks and the increased third party royalty charge. At
Agnew, costs increased due to increased underground mining and increased
environmental costs. Unit cash costs increased from US$468 per ounce to
US$616 per ounce.
GOLD FIELDS RESULTS Q1F2009 I 8
Operating profit decreased from R1,716 million (US$242 million) to R1,574
million (US$203 million). After accounting for taxation, sundry costs and
exceptional items, net earnings amounted to R39 million (US$5 million),
compared with R429 million (US$60 million) in the September 2007 quarter.
Earnings excluding gains and losses on foreign exchange, financial
instruments, exceptional items, loss of associates after taxation and
discontinued operations amounted to R120 million (US$16 million) this
quarter compared with R409 million (US$58 million) in September 2007.
Capital and development projects
South Deep project
September
2008
June
2008
Gold produced
- kg
849
1,167
-
000’ozs
27.3
37.5
Yield - underground
- g/t
5.1
7.4
- combined
- g/t
4.1
6.0
Total cash costs
- R/kg
339,694
250,300
-
US$/oz
1,365
1,002
Notional cash expenditure - R/kg
579,270
443,702
-
US$/oz
2,328
1,776
Gold production at South Deep decreased by 27 per cent from 1,167
kilograms (37,500 ounces) in the June quarter to 849 kilograms (27,300
ounces) in the September quarter. This was lower than the guidance of 980
kilograms (31,500 ounces) due to the slower than expected return to
operational stability after completing labour restructuring at the mine. The
decrease in gold production was mainly due to the planned safety stoppage
of all trackless mining operations in the 95 2 West and 3 West areas due to
the fact that the primary support on the main access ramps required
rehabilitation. The rehabilitation of the two main access ramps was
completed at the end of September 2008 and all production machinery used
to complete the rehabilitation of the ramps are now back on production. The
stoppage of production in the high grade 95 2 West and 3 West areas also
had a negative impact on the yield during the quarter.
Development increased by 30 per cent for the September quarter from 989
metres to 1,289 metres. Development above the 95 level increased from 750
metres to 1,220 metres for the September quarter.
Despite the annual wage increases, electricity price increases, the electricity
winter tariff rates and inflationary pressures, operating costs at R303 million
(US$39 million) were similar when compared with the June quarter’s cost of
R302 million (US$39 million). This was mainly due to the labour restructuring
programme which commenced in August and was substantially completed by
the end of September 2008. This resulted in approximately 2,100 employees
taking up the voluntary separations packages offered during the restructuring
process. There were further cost reductions as a result of the lower
production levels. However, as a result of the decrease in gold production
the total cash cost increased by 36 per cent from R250,300 per kilogram
(US$1,002 per ounce) in the June quarter to R339,694 per kilogram
(US$1,365 per ounce) in the September quarter
An operating loss of R119 million (US$15 million) was realised in the
September quarter compared with the June quarter’s operating loss of R39
million (US$6 million). The insurance claim for the fire damage and re-
imbursement of standing charges from the underground fire in August 2007
was finalised at a net settlement of US$17 million (R132 million) at the end of
the quarter.
Capital expenditure decreased to R189 million (US$24 million) in the
September quarter from R216 million (US$28 million) in the June quarter
mainly due to higher spending on the purchase of equipment for mechanised
development in the June quarter.
Notional cash expenditure increased by 31 per cent from R443,702 per
kilogram (US$1,776 per ounce) to R579,270 per kilogram (US$2,328 per
ounce) due to reduced gold production, partially offset by the decrease in
capital expenditure.
The forecast for the December quarter is as follows:
· Gold produced – 1,460 kilograms (46,900 ounces)
· Total cash costs* – R184,000 per kilogram (US$715 per ounce)
· Capital expenditure* – R235 million (US$29 million)
· Notional cash expenditure* – R353,000 per kilogram (US$1,370 per ounce)
* Based on an exchange rate of US$1 = R8.00.
With the completion of the restructuring process and the main access ramp
rehabilitation, South Deep will now focus on development of the ore body,
completion of the Twin shaft infrastructure and implementation of the
mechanised mining method for the de-stress cut in the massives mining
project, with a plan to increase production to approximately 1,500 kilograms
per quarter for the balance of the financial year, increasing thereafter.
Cerro Corona
September
2008
June
2008
Gold produced
- 000’oz
6.8
-
Copper produced
- tons
750
-
Total gold produced
- 000’ eq oz
12.4
-
Yield - gold
- g/t
0.5
-
- copper
- %
0.17
-
- combined
- g/t
0.9
-
Total cash cost
- US$/ eq oz
-
-
Notional cash expenditure - US$/ eq oz
2,289
-
The first mine production of 12,400 equivalent ounces was recorded during
the September quarter. This is below market guidance of 42,000 gold
equivalent ounces due to commissioning delays in the flotation section of the
process plant. However, the crusher and the mill ramped up perfectly. Ore
processed was 441,000 tons, with concentrate production at 6,100 tons.
Gold yield for the quarter was 0.50 grams per ton and copper yield was 0.17
per cent.
Total tons mined, excluding quarry material used for construction, increased
from 1.50 million tons in the June quarter to 1.89 million tons during the
September quarter. Ore mined increased from 0.76 million tons to 1.08
million tons. The mined grade has improved from the June quarter due to
increased tons mined from the higher grade blocks of the pit. The overall
strip ratio for the September quarter was lower at 0.75 compared with 0.96 in
the June quarter, as lower volumes of waste were mined reflecting the
delayed start-up of operations.
First shipment of concentrate at Cerro Corona took place on 30 September
made up of 4,000 wet tons of concentrate with contained metal of 4,624
ounces of gold and 415 tons of copper.
As no sales were recorded for the quarter, all costs, including a portion of
amortisation was carried in metal inventory. After amortisation and sundry
expense, the operation incurred a net loss of US$3 million for the quarter. No
cash costs have been reported.
Capital expenditure decreased from US$96 million (R744 million) in the June
quarter to US$24 million (R186 million) in the September quarter, with
expenditure on Cerro Corona construction project at US$11 million.
Commissioning activities were almost completed by quarter end and all
remaining commissioning items will be concluded during the December
quarter. Cumulative project commitments reached US$510 million, with the
project forecast cost at completion remaining at around US$545 million.
Other major capital expenditure for the quarter was on the Las Aguilas TMF
of US$3 million and ramp-up expenditure of US$8 million.
Notional cash expenditure was recorded at US$2,289 per equivalent ounce
and included the effect of the mine not operating at commercial levels of
production yet.
The forecast for the December quarter is as follows:
· Metals (gold and copper) produced – 55,000 to 60,000 equivalent ounces*
· Gold produced – 28,700 ounces
· Copper produced – 5,200 tons
· Total cash costs – US$279 per ounce
· Capital expenditure – US$64 million
·Project expenditure – US$44 million
·Sustaining expenditure – US$20 million
· Notional cash expenditure – US$1,450 per ounce
* Equivalent ounces based on gold price of US$800 per ounce and copper
US$5,000 per ton.
Increased metals production reflects the mine building up to designed
volumes which are expected to be achieved by the end of December or early
in the March quarter. The reduction in notional cash expenditure for the
quarter is due to higher equivalent ounces being produced during the quarter,
partially off-set by increased capital expenditure, mainly at the Las Aguilas
TMF.
9 I GOLD FIELDS RESULTS Q1F2009
From the December quarter Cerro Corona will be included in the international
operations section.
Uranium project
This project is focused on exploring the economic potential of processing the
Gold Fields South African tailings dams for the recovery of uranium and the
related by-products.
This project is being managed in two phases, namely, the Driefontein tailings
opportunity and the historical tailings opportunity.
A pre-feasibility study was completed on the Driefontein tailings at the end of
2007. The Driefontein current tailings processing are estimated to be 77
million ton at 63 g/t uranium content producing 21 million pounds of uranium.
The historical tailings opportunity is estimated to be 392 million tons at 74 g/t
uranium content producing 28 million pounds of uranium and 2 million ounces
of gold.
A feasibility study on the Driefontein tailings and a pre-feasibility study on the
historical tailings has been initiated at a cost of R160 million. It is expected
that the feasibility study on the Driefontein tailings will be completed by the
end of February 2009. The pre-feasibility study on the historical tailings will
be completed at the end of April 2009.
The drilling of the historical tailings facilities on the West Wits has been
accelerated in order to generate bulk sampling material for metallurgical
testing. A financial model has been developed to evaluate the different
treatment options and to determine the most suitable business model for this
project. Partners will be brought in where required.
Exploration and corporate development
Gold Fields continues to ramp up its international exploration programme with
thirty drill rigs active across eleven countries (Australia, Ghana, Peru, Mali,
Chile, DRC, Dominican Republic, China, USA, Indonesia and Kyrgyzstan),
compared with eighteen at the end of financial 2008. In addition, Gold Fields
signed a letter of intent to earn up to a 75 per cent interest in a joint venture
with Mindoro Resources Limited (TSX: “MIO.V”) on a promising greenfields
opportunity in the Philippines. A total of 100,857 metres of drilling were
completed during the quarter with encouraging results being returned from
several projects.
The Group has an increasing focus in the regions with an operational
footprint; Australasia, West Africa and South America. This supports the
medium term objective to build annual production to over one million ounces
per annum from each of these regions. The exploration group will rapidly
test, turn over and advance the existing robust portfolio of targets, while
remaining opportunistic for the acquisition of high quality advanced drilling
targets in favorable jurisdictions.
Greenfields exploration
At the Mt Carlton joint venture in northeast Queensland, Australia Gold Fields
is earning a 51 per cent stake in eight exploration tenements owned by
Conquest Mining Limited (ASX: “CQT”), surrounding Conquest’s Silver Hill
discovery. Exploration drilling completed includes two drill holes which tested
the strong IP/resistivity anomaly coincident with a zoned soil geochemical
anomaly at the Powerline Target (assay results are pending). At the Capsize
Target, a follow-up IP/resistivity survey has better defined drill targets
surrounding the alteration and mineralisation intersected in previous scout
drilling. Four holes have been planned to test an east-west trending
chargeability high located immediately north of the previously drilled scout
holes which returned anomalous results.
At the Clancy joint ventures in New South Wales, Australia where Gold Fields
is earning into an 80 per cent interest in three project areas from Clancy
Exploration Ltd (ASX: ”CLY”), exploration included ground geophysical
surveys which defined anomalies consistent with porphyry Cu-Mo-Au
mineralisation analogous to Newcrest’s nearby Cadia and Ridgeway MInes.
At the Eurowie Target, the initial diamond drill hole intersected 566 metres of
altered pyrite-chalcopyrite bearing rocks. A second hole intersected
chalcopyrite-bearing quartz-carbonate veins and hydrothermal breccias
within a broad halo of pyrite and hematite (assays are pending). Two
diamond drill holes completed at the Keston and Purseglove Targets
respectively cut intervals of strong magnetite and hematite alteration with
discrete zones of quartz-sericite-pyrite alteration, followed by zones of quartz-
carbonate veining and disseminated pyrite (assays are pending).
At the 80 per cent owned Kisenge Project in the southern DRC, exploration
activities included definition of some twenty one priority targets based on
interpretation of the recently completed airborne geophysical survey. Four of
these targets (Mpokoto, Kajimba West, Muswinji and Kamata) are at the
initial drilling stage and the remainder are scheduled for systematic follow-up
work. Auger and RAB drilling has continued at the Mpokoto Target and soil
sampling was completed at Muswinji. Assay results from auger sampling at
Kajimba Target have extended the target some three kilometres to the east.
RC drilling will be carried out on these targets during the next quarter.
Discussions are ongoing with the DRC Government regarding their review of
the MDDK mining convention.
At the 51 per cent owned Sankarani joint venture with Glencar Mining plc
(AIM: “GEX”) in south-western Mali, preparations are underway to resume
field work as soon as the rains subside in October 2008. The programme will
advance six target areas (Bada, Fie, FR14, BM East, Sindo, Selen 1) from
target definition to the initial drilling and complete initial drilling on four targets
(Bokoro Main West and East, Fingouana, Sanioumale West and East and
Kabaya).
Gold Fields and Orsu Metals Corporation (TSX: “OSU” and AIM: “OSU”) are
finalising a joint venture agreement on the Talas joint venture in Kyrgyzstan
which will grant Gold Fields the right to earn-in up to a 70 per cent interest.
An aggressive exploration programme is underway. Ongoing activities
include diamond drilling, road and drill platform construction, metallurgical
testing, soil and trench sampling and ground geophysical surveys (all assay
results are pending).
At the Redstar joint venture, Gold Fields is earning into a 60 per cent interest
in two of Redstar Gold Corp’s (TSX: “RGC.V”) projects located in the Carlin
Trend; Nevada, USA. Drilling commenced in August 2008 on both the
Richmond Summit and Dry Gulch projects. Several holes have encountered
favorably altered lower plate host rocks locally cut by pyritised andesitic and
felsic dykes (most assays are still pending).
At the GoldQuest joint venture in the Dominican Republic, Gold Fields is
earning into an initial 60 per cent interest in a portfolio of GoldQuest Mining
Corp’s (TSX: “GQC:V”) properties. Seven diamond drill holes were
completed at the Los Jengibres epithermal Au-Ag Target. Four of the holes
intersected silica+pyrite-sphalerite-chalcopyrite-barite vein, breccia and
stockwork mineralisation (assays are pending). Diamond drilling at the
adjacent Loma Viejo Project commenced in late September 2008. The 60
per cent earn-in threshold is expected to be reached by December 2008.
Initial drilling of three holes was completed at the Sino Gold Alliance joint
venture Bengge project in southwestern China with Sino Gold Mining Ltd
(ASX: “SGX” and HKSE: “1862”) with the fourth in progress. An encouraging
intersection was returned from hole SGB003 with 18 metres at 3.92 grams
per ton gold from 42 metres including 9 metres at 7.6 grams per ton gold.
Near Mine exploration
At St. Ives in Western Australia, drilling at the Athena Target focused on
resource conversion and extension. Results in hand are primarily from the
high grade core of the central shoot. These include some of the thickest and
highest grade results to date including 8 metres at 20 grams per ton gold
from 400.5 metres and 10 metres at 14.9 grams per ton gold from 361.4
metres. Although very encouraging exploration results continue at Athena,
conversion of the resource to reserves remains a challenge due to high
royalty and operating costs. Results for the diamond hole drilled into the
Yorrick conceptual target yielded an intersection of 12.85 metres at 2.48
grams per ton gold from 83.35 metres, including 1.8 metres at 6.53 grams
per ton gold in the core of the structure.
At Greater Santa Ana results are continuing to return primarily from the
Bahama Pit and Bahama West drilling. Recent results from Santa Ana are of
lower grade. The focus on the open pit potential at Greater Santa Ana will
see the deferral of any further drilling into the down dip areas of the Santa
Ana Shear. Recent results, including 5 metres at 10.8 grams per ton gold
from 25 metres, have continued to demonstrate the presence of foot wall
structure to Bahama to the west of the pit. These come to surface under
shallow cover. The continuation of the Bahama structures and supergene
mineralisation related to these has been confirmed by recent results,
including 5 metres at 8.6 grams per ton gold from 25 metres and 5 metres at
2.4 grams per ton gold.
Interesting results have also been returned from the Greater Revenge Area
from the N01 HW South target. The results, including 12 metres at 16.6
grams per ton gold from 94 metres, 18 metres at 10.3 grams per ton gold
from 85 metres and 7 metres at 3.1 grams per ton gold from 85 metres, are
high grade, but fall in the hanging wall and footwall of the targeted position in
each hole. Interpretation of these will need to be made in 3D once all results
are returned. Significant up-dip potential has yet to be tested in this location.
At Agnew in Western Australia, new geologic models were completed for the
Waroonga complex. Underground drilling continued on the 450S lode but
moderate to low grades were returned. Assay results from surface
exploration were returned from visible gold intersections at Cinderella with
best intervals including 4 metres at 5.8 grams per ton gold and 6 metres at
27.5 grams per ton gold. Visible gold is being located in quartz veins in a
GOLD FIELDS RESULTS Q1F2009 I 10
number of new holes currently being completed. Drilling has outlined a broad
zone of alteration and arsenopyrite mineralisation within which are zones of
increased quartz veining containing visible gold.
At Damang in Ghana, significant hydrothermal style mineralisation has been
intersected north of the Amoanda pit with the main part of the mineralisation
starting at 120 metres below surface. At the Abosso Underground Target,
two shallow holes with deflections were completed and intersected 20
centimetres to 50 centimetres thick conglomerate bands.
At Cerro Corona in Peru, district exploration continues under the Consolidada
de Hualgayoc 50:50 joint venture with Buenaventura (NYSE: “BVN”). An
airborne geophysical survey (magnetic and radiometrics) has been tendered
and will be flown early in the December quarter. At the Titan-Arabe Target,
negotiations are continuing with the local communities to gain drilling access
to this attractive Cu-Au anomaly. It is hoped that drilling can commence in
the December quarter.
Development projects
The Arctic Platinum Project in Finland was returned to Gold Fields on 1
September 2008 after North American Palladium (TSX: “NAP”) let its option
over the project expire. Gold Fields is reassessing the project using new
information from NAP’s work and forecast metal prices. Gold Fields also
plans to complete further metallurgical test work during the December quarter
and will examine strategic options with respect to the project.
Corporate
Leadership changes at Gold Fields
On 30 July 2008 the Board announced that Terence Goodlace, Chief
Operating Officer and executive director of the company resigned with effect
from 15 October 2008.
Terence’s position of Chief Operating Officer will be split into two roles, with
Vishnu Pillay, currently the Head of South African operations, continuing in
that role as Executive Vice president of the South African operations, and
Glenn Baldwin, currently Head of Australian and West African operations,
assuming the role of Executive Vice President for all international operations.
Both Vishnu and Glenn will report to Nick Holland and join the Group General
Executive Committee. The change in the reporting structure became
effective on 1 October 2008.
Peter Turner, previously Vice President and Head of Operations at
Driefontein was appointed as Vice President and Head of West Africa as
successor to Johan Botha, who will be retiring at the end of 2008. Peter’s
appointment was effective from 1 October 2008.
To fill the position vacated by Peter, Koos Barnard, previously Senior
Manager: Operations at Driefontein was promoted to the position of Vice
President and Head of Operations of Driefontein Gold Mine with effect from 1
September 2008.
Dana Roets previously Vice President Technical Services at Corporate Office
was appointed as Vice President and Head of Operations at Kloof to replace
Rodney Hart who resigned during the quarter. Tim Rowland previously
Senior Consultant: Mineral Resources and Mine Planning was promoted to
Vice President: Technical Services, South Africa region to take over from
Dana Roets.
Appointment of Directors
With effect from 1 August 2008 Gayle Margaret Wilson was appointed as an
independent Non-Executive Director and a member of the Audit Committee.
Gayle is a chartered accountant and has a wealth of experience in auditing
the mining industry. Previously, Gayle was a partner of Ernst & Young until
her retirement in June 2005. She was the lead engagement partner on
Anglovaal Mining Limited (now African Rainbow Minerals Limited) from 1997
to 2003. She was also responsible for the audits of Northam Platinum
Limited, Aquarius Platinum Limited and was involved in the audit of Anglo
Plats operations for several years.
Gayle was involved in the audit of the AngloGold Group from its formation
and listing on the NYSE in 1998 and in 2001, this became her main focus
when Ernst & Young were appointed auditors to all their global operations
and she took over as the global lead engagement partner (now AngloGold
Ashanti). Gayle is a non-executive director of Witwatersrand Consolidated
Gold Resources Limited (Wits Gold).
With effect from 8 October Mr Richard (Rick) Peter Menell, was appointed as
an independent Non-Executive Director of Gold Fields.
Rick is a director on various companies. Previously, he was the President
and Member of the Chamber of Mines of South Africa, President and Chief
Executive Officer of TEAL Exploration & Mining Inc and Executive Chairman
of Anglovaal Mining Limited and Avgold Limited. He holds a B.A. (Hons) and
M.A. (Natural Sciences, Geology) from Trinity College, Cambridge, UK and a
M.Sc. (Mineral Exploration and Management) from Stanford University,
California, USA.
Summons from Randgold and Exploration
On 22 August 2008 Gold Fields announced that it received a summons from
Randgold and Exploration Company Limited (“Randgold”) and African
Strategic Investment (Holdings) Limited, claiming that during the period that
Western Areas Limited (“WAL”) was under the control of Brett Kebble, Roger
Kebble and others, WAL was allegedly part of a scam whereby JCI Limited
unlawfully disposed of shares owned by Randgold in Randgold Resources
Limited (“Resources”) and Afrikander Lease Limited, now Uranium One.
WAL’s preliminary assessment is that it has strong defenses to these claims
and accordingly, WAL’s attorneys have been instructed to vigorously defend
the claims.
It should be noted that the claims lie only against WAL, whose only interest is
a 50 per cent stake in the South Deep Mine. This alleged liability is historic
and relates to a period of time prior to Gold Fields purchasing the company.
Outlook
In the December quarter attributable gold production is forecast to increase
by around 5 per cent to 840,000 ounces. Notional cash expenditure (NCE) is
forecast to decrease from US$909 per ounce in the September quarter to
US$890 per ounce in the December quarter and total cash costs are forecast
to reduce from US$617 per ounce to US$580 per ounce at an exchange rate
of US$1 = R8.00.
At the current exchange rate of around US$1 = R11.00, NCE and total cash
costs would decrease to US$740 per ounce and US$460 per ounce
respectively.
At the South African operations gold production is forecast to increase by 2
per cent mainly due to increased production from Beatrix and South Deep,
partially offset by lower production at Kloof. Total cash costs and NCE are
forecast at US$590 per ounce and US$850 per ounce respectively. At the
international operations production is forecast to increase by 11 per cent
mainly due to a full quarter’s production from Cerro Corona, although this
mine is still in a build-up phase. Total cash costs and NCE are forecast at
US$550 per ounce and US$960 per ounce respectively. The above is based
on an exchange rate of US$1 = R8.00.
It is anticipated that production will be at around an annualised 4 million
attributable ounces during the March 2009 quarter. South Africa will
contribute approximately 2.34 million ounces once the Kloof Main shaft
rehabilitation is completed, with the balance coming from the international
operations. Ghana will contribute 0.70 million attributable ounces, Australia
0.65 million ounces and Cerro Corona approximately 0.31 million attributable
equivalent ounces. Group NCE is forecast at US$725 per ounce at an
exchange rate of US$1 = R8.00 and US$600 per ounce at US$1 = R11.00.
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 September 2008 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.
N.J. Holland
Chief Executive Officer
29 October 2008
11 I GOLD FIELDS RESULTS Q1F2009
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
Quarter
September
2008
June
2008
September
2007
Revenue
5,723.6
6,452.4 5,018.2
Operating costs, net
4,149.7
3,731.1 3,301.9
- Operating costs
4,233.2
3,747.5 3,291.9
- Gold inventory change
(83.5)
(16.4) 10.0
Operating profit
1,573.9
2,721.3 1,716.3
Amortisation and depreciation
901.5
777.9 771.1
Net operating profit
672.4
1,943.4 945.2
Net interest paid
(111.5)
(14.7) (93.7)
Share of loss of associates after taxation
(104.2)
(31.7) (1.4)
Loss on foreign exchange
(6.1)
(7.4) (12.3)
(Loss)/gain on financial instruments
(55.8)
1.9 8.9
Other
(114.9)
(75.8) (11.3)
Exploration
(67.7)
(107.0) (84.6)
Profit before tax and exceptional items
212.2
1,708.7 750.8
Exceptional gain/(loss)
114.4
(94.8) 29.3
Profit before taxation
326.6
1,613.9 780.1
Mining and income taxation
256.9
663.7 289.1
- Normal taxation
203.5
555.4 223.8
- Deferred taxation
53.4
108.3 65.3
Net profit from continued operations
69.7
950.2 491.0
Loss from discontinued operations
-
- (8.2)
Profit adjustment on sale of Venezuelan assets
-
- -
Net profit
69.7
950.2 482.8
Attributable to:
- Ordinary shareholders
39.2
842.9 428.6
- Minority shareholders
30.5
107.3 54.2
Exceptional items:
(Loss)/profit on sale of investments
(0.9)
1.5 -
Profit/(loss) on sale of assets
1.9
(0.8) 29.3
South Deep restructuring
(18.8)
(65.2) -
Insurance claim – South Deep
132.2
- -
Driefontein 9 shaft closure costs
-
20.8 -
Impairment of assets
-
(51.2) -
Other
-
0.1 -
Total exceptional items
114.4
(94.8) 29.3
Taxation
(46.1)
31.0 (11.2)
Net exceptional items after tax and minorities
68.3
(63.8) 18.1
Net earnings
39.2
842.9 428.6
Net earnings per share (cents)
6
129 66
Diluted earnings per share (cents)
6
120 62
Headline earnings
38.9
880.6 410.5
Headline earnings per share (cents)
6
135 63
Net earnings excluding gains and losses on foreign exchange, financial instruments,
exceptional items, share of loss of associates after taxation and discontinued operations
120.3
942.8 409.1
Net earnings per share excluding gains and losses on foreign exchange, financial
instruments, exceptional items, share of loss of associates after taxation and
discontinued operations (cents)
18
144 63
Gold sold – managed
kg
26,305
28,861 32,306
Gold price received
R/kg
217,586
223,568 155,333
Total cash costs
R/kg
153,461
125,359 98,465
GOLD FIELDS RESULTS Q1F2009 I 12
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
UNITED STATES DOLLARS
Quarter
September
2008
June
2008
September
2007
Revenue
739.5
836.3 706.8
Operating costs, net
536.1
481.6 465.1
- Operating costs
546.9
484.1 463.7
- Gold inventory change
(10.8)
(2.5) 1.4
Operating profit
203.4
354.7 241.7
Amortisation and depreciation
116.5
100.1 108.6
Net operating profit
86.9
254.6 133.1
Net interest paid
(14.4)
(1.7) (13.2)
Share of loss of associates after taxation
(13.5)
(3.8) (0.2)
Loss on foreign exchange
(0.8)
(1.1) (1.7)
(Loss)/gain on financial instruments
(7.2)
- 1.3
Other
(14.8)
(10.2) (1.6)
Exploration
(8.7)
(14.0) (11.9)
Profit before tax and exceptional items
27.5
223.8 105.8
Exceptional gain/(loss)
14.8
(17.4) 4.1
Profit before taxation
42.3
206.4 109.9
Mining and income taxation
33.2
87.4 40.7
- Normal taxation
26.3
73.8 31.5
- Deferred taxation
6.9
13.6 9.2
Net profit from continued operations
9.1
119.0 69.2
Loss from discontinued operations
-
(0.1) (1.2)
Profit adjustment on sale of Venezuelan assets
-
(0.2) -
Net profit
9.1
118.7 68.0
Attributable to:
- Ordinary shareholders
5.2
104.7 60.4
- Minority shareholders
3.9
14.0 7.6
Exceptional items:
(Loss)/profit on sale of investments
(0.1)
(4.2) -
Profit/(loss) on sale of assets
0.2
(0.2) 4.1
South Deep restructuring
(2.4)
(9.0) -
Insurance claim – South Deep
17.1
- -
Driefontein 9 shaft closure costs
-
3.0 -
Impairment of assets
-
(7.0) -
Other
-
- -
Total exceptional items
14.8
(17.4) 4.1
Taxation
(6.0)
4.3 (1.6)
Net exceptional items after tax and minorities
8.8
(13.1) 2.5
Net earnings
5.2
104.7 60.4
Net earnings per share (cents)
1
16 9
Diluted earnings per share (cents)
1
16 9
Headline earnings
5.0
111.1 57.9
Headline earnings per share (cents)
1
17 9
Net earnings excluding gains and losses on foreign exchange, financial instruments,
exceptional items, share of loss of associates after taxation and discontinued operations
15.6
122.9 57.6
Net earnings per share excluding gains and losses on foreign exchange, financial
instruments, exceptional items, share of loss of associates after taxation and
discontinued operations (cents)
2
19 9
South African rand/United States dollar conversion rate
7.74
7.77 7.10
South African rand/Australian dollar conversion rate
6.97
7.33 6.02
Gold sold – managed
ozs (000)
846
928 1,039
Gold price received
$/oz
874
895 680
Total cash costs
$/oz
617
502 431
13 I GOLD FIELDS RESULTS Q1F2009
Balance sheet
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
UNITED STATES DOLLARS
September
2008
June
2008
September
2008
June
2008
Property, plant and equipment
45,715.7
45,533.3
5,764.9
5,691.7
Goodwill
4,458.9
4,458.9
562.3
557.4
Non-current assets
768.3
746.7
96.9
93.3
Investments
4,860.8
5,704.2
613.0
713.0
Discontinued operations
-
-
-
-
Current assets
6,655.5
6,450.5
839.3
806.3
- Other current assets
4,837.4
4,443.2
610.0
555.4
- Cash and deposits
1,818.1
2,007.3
229.3
250.9
Total assets
62,459.2
62,893.6
7,876.4
7,861.7
Shareholders’ equity
41,218.1
42,561.2
5,197.7
5,320.1
Deferred taxation
5,384.5
5,421.9
679.0
677.7
Long-term loans
9,081.8
6,513.9
1,145.2
814.2
Environmental rehabilitation provisions
1,980.1
2,015.5
249.7
251.9
Post-retirement health care provisions
20.9
21.0
2.6
2.6
Current liabilities
4,773.8
6,360.1
602.2
795.2
- Other current liabilities
4,281.9
5,875.9
540.2
734.7
- Current portion of long-term loans
491.9
484.2
62.0
60.5
Total equity and liabilities
62,459.2
62,893.6
7,876.4
7,861.7
South African rand/US dollar conversion rate
7.93
8.00
South African rand/Australian dollar conversion rate
6.72
7.66
Condensed changes in equity
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
UNITED STATES DOLLARS
September
2008
September
2007
September
2008
September
2007
Balance at the beginning of the financial year
42,561.2
37,106.3
5,320.1
5,189.7
Issue of share capital
-
0.1
-
-
Increase in share premium
2.7
8.5
0.3
1.2
Marked to market valuation of listed investments
(883.2)
217.3
(114.1)
30.6
Dividends paid
(784.5)
(619.8)
(101.9)
(87.3)
Increase in share-based payment reserve
93.9
22.4
12.1
3.2
Profit attributable to ordinary shareholders
39.2
428.6
5.2
60.3
Profit attributable to minority shareholders
30.5
54.2
3.9
7.6
Increase in minority interest
733.1
-
96.0
-
Currency translation adjustment and other
(651.2)
(181.1)
(33.5)
85.5
Share of equity investee’s other equity movements
76.4
-
9.6
-
Balance as at the end of September
41,218.1
37,036.5
5,197.7
5,290.8
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
September
2008
June
2008
September
2008
June
2008
Net earnings
39.2
842.9
5.2
104.7
Profit/(loss) on sale of investments
0.9
(1.5)
0.1
0.8
Taxation effect on sale of investments
-
2.2
(0.1)
0.3
(Loss)/profit on sale of assets
(1.9)
0.8
(0.2)
0.2
Taxation effect on sale of assets
0.7
0.4
-
0.1
Impairment of assets
-
51.2
-
7.0
Taxation effect on impairment of assets
-
(15.4)
-
(2.0)
Headline earnings
38.9
880.6
5.0
111.1
Headline earnings per share – cents
6
135
1
17
Based on headline earnings as given above divided by
653,241,161 for Sept 2008 (June 2008 – 653,156,884 and
September 2007 – 652,219,625) being the weighted average
number of ordinary shares in issue.
GOLD FIELDS RESULTS Q1F2009 I 14
Cash flow statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
Quarter
September
2008
June
2008
September
2007
Cash flows from operating activities
(31.7)
2,567.9 985.3
Profit before tax and exceptional items
212.2
1,708.7 750.8
Exceptional items
114.4
(94.8) 29.3
Amortisation and depreciation
901.5
777.9 771.1
Change in working capital
(577.0)
262.5 (223.8)
Taxation paid
(912.6)
(194.6) (361.1)
Other non-cash items
229.8
108.2 12.7
Discontinued operations
-
- 6.3
Dividends paid
(784.5)
(424.9) (619.9)
Ordinary shareholders
(784.5)
(424.9) (619.9)
Cash flows from investing activities
(1,907.9)
(3,219.5) (1,932.8)
Capital expenditure – additions
(1,812.8)
(2,524.8) (1,927.9)
Capital expenditure – proceeds on disposal
2.2
6.5 30.8
Purchase of subsidiaries
-
- -
Purchase of investments
(86.8)
(707.5) (2.4)
Proceeds on the disposal of investments
-
65.4 -
Environmental and post-retirement health care payments
(10.5)
(59.1) (4.9)
Discontinued operations
-
- (28.4)
Cash flows from financing activities
2,597.7
1,095.1 744.2
Loans received
3,287.9
1,164.6 908.6
Loans repaid
(692.9)
(850.0) (173.0)
Rights offer – Cerro Corona
-
768.0 -
Shares issued
2.7
12.5 8.6
Net cash inflow/(outflow)
(126.4)
18.6 (823.2)
Translation adjustment
(62.8)
44.6 (17.0)
Cash at beginning of period
2,007.3
1,944.1 2,310.1
Cash at end of period
1,818.1
2,007.3 1,469.9
UNITED STATES DOLLARS
Quarter
September
2008
June
2008
September
2007
Cash flows from operating activities
(0.7)
334.0 131.1
Profit before tax and exceptional items
27.5
223.8 105.8
Exceptional items
14.8
(17.4) 4.1
Amortisation and depreciation
116.5
100.1 108.6
Change in working capital
(74.5)
36.1 (31.5)
Taxation paid
(114.7)
(27.7) (58.6)
Other non-cash items
29.7
19.5 1.8
Discontinued operations
-
(0.4) 0.9
Dividends paid
(101.9)
(53.9) (88.6)
Ordinary shareholders
(101.9)
(53.9) (88.6)
Cash flows from investing activities
(246.5)
(429.0) (272.2)
Capital expenditure – additions
(234.2)
(327.2) (271.5)
Capital expenditure – proceeds on disposal
0.3
0.8 4.3
Purchase of subsidiaries
-
(3.3) -
Purchase of investments
(11.2)
(96.5) (0.3)
Proceeds on the disposal of investments
-
8.9 -
Environmental and post-retirement health care payments
(1.4)
(8.1) (0.7)
Discontinued operations
-
(3.6) (4.0)
Cash flows from financing activities
335.6
142.7 104.8
Loans received
424.8
150.4 128.0
Loans repaid
(89.5)
(105.2) (24.4)
Rights issue – Cerro Corona
-
96.0 -
Shares issued
0.3
1.5 1.2
Net cash outflow
(13.5)
(6.2) (124.9)
Translation adjustment
(8.1)
14.4 11.8
Cash at beginning of period
250.9
242.7 323.1
Cash at end of period
229.3
250.9 210.0
15 I GOLD FIELDS RESULTS Q1F2009
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 September 2008
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 2007 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.
On 31 December 2007 a further repayment of US$172 million was made against the loan which resulted in an early drawdown of the same amount
under the forward cover. On 6 March 2008 the balance of US$318 million was extended to 6 June 2008 at a rate of R7.9752, based on a spot of
R7.8052. On 6 June 2008 this forward cover was extended to 7 July 2008 at a rate of R7.8479, based on a spot of R7.7799.
Since the financial year end, the US$318.0 million was extended as follows:
· on 7 July, extended to 7 August 2008 at a rate of R7.9205, based on a spot of R7.8555.
· on 7 August, extended to 8 September 2008 at a rate of R7.3817, based on a spot of R7.3192.
· on 8 September, extended to 8 October 2008 at a rate of R7.9091, based on a spot of R7.8476.
At the end of Sept 2008 the mark to market value of the US$318.0 million forward cover was positive by R14.2 million (US$1.8 million). The quarter on
quarter marked to market movement was negative R81.9 million of which R22.2 million was offset against the R22.2 million foreign exchange gain on
the revaluation of the underlying loan being hedged. The balance of R59.7 million represents the forward cover cost which for accounting purposes, as
this forward cover has been designated as a hedging instrument, is accounted for as part of interest.
Ghana
In August 2008, the following forward cover was taken in the name of Gold Fields Ghana Ltd to cover exposure on capital projects:
· in total AUD 9.3 million for various dates, based on a spot of AUD0.8693, with maturity dates end of October 2008, November 2008, December 2008
and January 2009.
· in total EUR 8.4 million for various dates, based on a spot EUR1.4799, with maturity date end of October 2008.
· in total Rand 36.1 million for various dates, based on a spot R7.6450, with maturity dates end of October 2008, November 2008, December 2008,
January 2009 and February 2009.
The mark to market value for these positions at quarter end was negative by US$0.4 million.
Diesel Hedge
Ghana
Gold Fields Ghana Holdings (BVI) Ltd purchased the following Asian style ICE Gasoil call options:
· in respect of a total of 30 million litres of diesel exposure (2.5 million litres per month), for the period 1 July 2008 – 30 June 2009 at a strike price of
US$1.09 per litre. A premium of US$2.5 million was paid.
· in respect of a 30 million litres of diesel exposure (2.5 million litres per month) for the period 1 July 2008 – 30 June 2009 at a strike price of US$1.11
per litre. A premium of US$3.3 million was paid.
· in respect of a total of 10 million litres of diesel exposure (5 million litres per month) for the period 1 July 2009 – 31 August 2009 at a strike price of
US$0.98 per litre. A premium of US$1.0 million was paid.
· in respect of a total of 36 million litres of diesel exposure (6 million litres per month) for the period 1 September 2009 – 28 February 2010 at a strike
price of US$0.90 per litre. A premium of US$3.6 million was paid.
The mark to market value for the call options purchased was positive by US$5.6 million at quarter end, compared with a premium paid of US$10.4
million.
Australia
On 21 July 2008 Gold Fields Australia purchased Asian style Singapore 0.5 Gasoil call options in respect of a total of 30 million litres of diesel exposure
(2.5 million litres per month) for the period 1 August 2008 – 31 July 2009 at a strike price of US$1.0950 per litre. A premium of US$2.85 million was
paid.
Further Asian Style Singapore 0.5 Gasoil call options were purchased in respect of a total of 17.5 million litres of diesel exposure (2.5 million litres per
month) for the period 1 August 2009 – 28 February 2010 at a strike price of US$0.9128 per litre. A premium of US$1.6 million was paid.
The mark to market value for the call options purchased was positive by US$2.2 million at quarter end, compared with a premium paid of US$4.4 million.
GOLD FIELDS RESULTS Q1F2009 I 16
Total cash costs
Gold Industry Standards Basis
Figures are in millions unless otherwise stated
Total Mine
Operations
South African Operations
International Operations
Total
Driefontein
Kloof Beatrix
South
Deep
Total
Ghana Peru
Australia
#
Tarkwa Damang
Cerro
Corona
St Ives
Agnew
Operating costs
(1)
Sept
2008
4,233.2 2,467.7
880.6
785.4
498.6
303.1
1,765.5
688.7 274.8 52.7
560.2
189.1
June
2008
3,747.5 2,197.1
741.5
694.2
459.6
301.8
1,550.4
598.4 255.4
-
506.5
190.1
Gold-in-process and
Sept 2008
(63.3)
-
-
-
-
-
(63.3)
(18.8) (4.9) (52.7)
3.0
10.1
inventory change*
June 2008
(25.5)
-
-
-
-
-
(25.5)
(12.7) (30.0)
-
14.3
2.9
Less:
Sept 2008
23.1
18.8
7.0
6.8
3.3
1.7
4.3
1.5 - -
2.1
0.7
Rehabilitation costs
June 2008
15.2
10.6
4.4
3.2
2.3
0.7
4.6
1.2 - -
2.7
0.7
Production taxes
Sept 2008
7.6
7.6
2.1
3.0
1.4
1.1
-
-
-
-
-
-
June
2008
(29.1) (29.1)
(16.2)
(11.3)
(2.8)
1.2
-
-
-
-
-
-
General and admin
Sept 2008
163.0
98.5
37.0
29.7
18.8
13.0
64.5
36.7 5.1
-
16.4
6.3
June
2008
158.2
87.4
34.5
26.0
17.9
9.0
70.8
39.0 4.7
-
20.1
7.0
Exploration costs
Sept 2008
13.7
-
-
-
-
-
13.7
- 4.6
-
7.8
1.3
June 2008
1.6
-
-
-
-
-
1.6
- 6.2
-
(7.0)
2.4
Cash operating costs
Sept 2008
3,962.5 2,342.8
834.5
745.9
475.1
287.3
1,619.7
631.7 260.2
-
536.9
190.9
June
2008
3,576.1 2,128.2
718.8
676.3
442.2
290.9
1,447.9
545.5 214.5
-
505.0
182.9
Plus:
Sept 2008
7.6
7.6
2.1
3.0
1.4
1.1
-
-
-
-
-
-
Production taxes
June 2008
(29.1) (29.1)
(16.2)
(11.3)
(2.8)
1.2
-
-
-
-
-
-
Royalties
Sept 2008
66.7
-
-
-
-
-
66.7
31.6 8.9
-
17.5
8.7
June
2008
71.0
-
-
-
-
-
71.0
34.8 10.0
-
17.5
8.7
Total Cash Costs
(2)
Sept 2008
4,036.8 2,350.4
836.6
748.9
476.5
288.4
1,686.4
663.3 269.1
-
554.4
199.6
June
2008
3,618.0 2,099.1
702.6
665.0
439.4
292.1
1,518.9
580.3 224.5
-
522.5
191.6
Plus:
Sept 2008
832.8 462.4
139.6
174.8
98.9
49.1
370.4
114.9 25.4
-
230.1
Amortisation*
June 2008
750.9 389.5
144.4
144.5
89.7
10.9
361.4
92.4 40.8
-
228.2
Rehabilitation
Sept 2008
23.1
18.8
7.0
6.8
3.3
1.7
4.3
1.5 - -
2.8
June
2008
15.2
10.6
4.4
3.2
2.3
0.7
4.6
1.2 - -
3.4
Total Production Costs
(3)
Sept
2008
4,892.7 2,831.6
983.2
930.5
578.7
339.2
2,061.1
779.7 294.5
-
986.9
June
2008
4,384.1 2,499.2
851.4
812.7
531.4
303.7
1,884.9
673.9 265.3
-
945.7
Gold sold – thousand ounces Sept 2008
845.7 492.0
206.7
156.6
101.5
27.3
353.7
156.3 44.0
-
101.2
52.2
June
2008
927.9 553.2
218.2
179.3
118.3
37.5
374.7
168.6 50.0
-
101.5
54.6
Total Cash Costs– US$/oz Sept
2008
617
617
523
618
607
1,365
616
548 790
-
708
494
June
2008
502
488
414
477
478
1,002
522
443 578
-
663
452
Total Cash Costs – R/kg
Sept 2008
153,461 153,581 130,149 153,747 150,982 339,694 153,295 136,481 196,567
- 176,168 122,831
June
2008
125,359 121,984 103,537 119,240 119,467 250,300 130,344 110,639 144,373
- 165,558 112,905
Total Production Costs
Sept 2008
747
744
615
768
737
1,606
753
645 864
-
831
– US$/oz
June 2008
608
581
502
583
578
1,042
647
514 683
-
780
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.
Average exchange rates are US$1 = R7.74 and US$1 = R7.77 for the September 2008 and June 2008 quarters respectively.
Notional cash expenditure
##
Total
Mines
South African Operations
International Operations
Total
Driefontein
Kloof Beatrix
South
Deep
Total
Ghana Peru Australia
Tarkwa Damang
Cerro
Corona
St Ives
Agnew
Operating costs – R’m
Sept 2008
4,233.2 2,467.7
880.6
785.4
498.6
303.1 1,765.5
688.7 274.8 52.7 560.2
189.1
June
2008
3,747.5 2,197.1
741.5
694.2
459.6
301.8 1,550.4
598.4 255.4
- 506.5
190.1
Capital expenditure – R’m
Sept 2008
1,802.4 788.1
207.7
238.2
153.5
188.7 1,014.3
555.5 30.2 167.7 212.2
48.7
June
2008
2,517.2 912.6
302.9
242.4
151.3
216.0 1,604.6
522.9 44.7 686.9 259.4
90.7
Notional cash expenditure – R/kg Sept 2008
226,120
212,742
169,306
210,142 206,622 579,270 244,099 256,008 222,790 569,509 245,440 146,338
June
2008
217,065
180,712
153,905
167,940 166,096 443,702 277,046 213,785 192,990
- 242,681 165,468
Notional cash expenditure – U$/oz Sept 2008
909
855
680
844
830
2,328
981
1,029 895 2,289 986
588
June
2008
869
723
616
672
665
1,776
1,109
856 773
- 971
662
## Notional cash expenditure (NCE) per kilogram (ounce) = operating costs plus capital expenditure divided by gold produced.
June 2008 quarter’s NCE for international operations includes Cerro Corona.
17 I GOLD FIELDS RESULTS Q1F2009
Operating and financial results
SOUTH AFRICAN RAND
Total Mine
Operations
South African Operations
Total Driefontein Kloof Beatrix South Deep
Operating Results
Sept 2008
12,698
3,488 1,536 971 790
191
Ore milled/treated (000 tons)
June 2008
12,259
3,661 1,545 1,143 778
195
Yield (grams per ton)
Sept 2008
2.1
4.4 4.2 5.0 4.0 4.4
June
2008
2.4
4.7 4.4 4.9 4.7 6.0
Gold produced (kilograms)
Sept 2008
26,692
15,304 6,428 4,871 3,156
849
June
2008
28,861
17,208 6,786 5,577 3,678 1,167
Gold sold (kilograms)
Sept 2008
26,305
15,304 6,428 4,871 3,156
849
June
2008
28,861
17,208 6,786 5,577 3,678 1,167
Gold price received (Rand per kilogram)
Sept 2008
217,586
216,702 216,226 217,512 216,413 216,726
June
2008
223,568
225,070 224,934 224,583 226,101 224,936
Total cash costs (Rand per kilogram)
Sept 2008
153,461
153,581 130,149 153,747 150,982 339,694
June
2008
125,359
121,984 103,537 119,240 119,467 250,300
Notional cash expenditure (Rand per kilogram)
Sept 2008
226,120
212,742 169,306 210,142 206,622 579,270
June
2008
217,065
180,712 153,905 167,940 166,096 443,702
Operating costs (Rand per ton)
Sept 2008
333
707 573 809 631 1,587
June
2008
306
600 480 607 591 1,548
Financial Results (Rand million)
Revenue Sept
2008
5,723.6
3,316.4 1,389.9 1,059.5 683.0
184.0
June
2008
6,452.4
3,873.0 1,526.4 1,252.5 831.6
262.5
Operating costs, net
Sept 2008
4,149.7
2,467.7 880.6 785.4 498.6 303.1
June
2008
3,731.1
2,197.1 741.5 694.2 459.6 301.8
- Operating costs
Sept 2008
4,233.2
2,467.7 880.6 785.4 498.6 303.1
June
2008
3,747.5
2,197.1 741.5 694.2 459.6 301.8
- Gold inventory change
Sept 2008
(83.5)
- - - - -
June
2008
(16.4)
- - - - -
Operating profit
Sept 2008
1,573.9
848.7 509.3 274.1 184.4 (119.1)
June
2008
2,721.3
1,675.9 784.9 558.3 372.0 (39.3)
Amortisation of mining assets
Sept 2008
864.1
462.4 139.6 174.8 98.9
49.1
June
2008
741.8
389.5 144.4 144.5 89.7
10.9
Net operating profit
Sept 2008
709.8
386.3 369.7 99.3 85.5 (168.2)
June
2008
1,979.5
1,286.4 640.5 413.8 282.3 (50.2)
Other income/(expense)
Sept 2008
(131.6)
(79.3) (29.9) (23.9) (10.3) (15.2)
June
2008
(11.6)
(45.6) (18.9) (8.0) (7.2) (11.5)
Profit before taxation
Sept 2008
578.2
307.0 339.8 75.4 75.2 (183.4)
June
2008
1,967.9
1,240.8 621.6 405.8 275.1 (61.7)
Mining and income taxation Sept
2008
283.2
151.1 115.2 32.5 31.4 (28.0)
June
2008
659.8
437.6 237.1 143.1 108.1 (50.7)
- Normal taxation
Sept 2008
193.4
68.4 66.4 1.9 0.1
-
June
2008
505.2
276.1 180.7 94.9 0.5
-
- Deferred taxation
Sept 2008
89.8
82.7 48.8 30.6 31.3 (28.0)
June
2008
154.6
161.5 56.4 48.2
107.6 (50.7)
Profit before exceptional items
Sept 2008
295.0
155.9 224.6 42.9 43.8 (155.4)
June 2008
1,308.1
803.2 384.5 262.7 167.0 (11.0)
Exceptional items
Sept 2008
115.4
115.2 1.7 - 0.2 113.3
June
2008
(96.4)
(43.8) 21.2 (0.3) 0.4 (65.1)
Net profit
Sept 2008
410.4
271.1 226.3 42.9 44.0 (42.1)
June
2008
1,211.7
759.4 405.7 262.4 167.4 (76.1)
Net profit excluding gains and losses on
foreign exchange, financial instruments and
exceptional items
Sept 2008
386.2
202.0 225.3 42.9 43.9 (110.1)
June 2008
1,275.9
785.3 392.5 262.7 167.1 (37.0)
Capital expenditure
Sept 2008
1,802.4
788.1 207.7 238.2 153.5 188.7
June 2008
2,517.2
912.6 302.9 242.4 151.3 216.0
Planned for next six months to March 2009
4,154.7
1,953.5 502.0 538.1 323.6 589.8
GOLD FIELDS RESULTS Q1F2009 I 18
Operating and financial results
SOUTH AFRICAN RAND
International Operations
Total
Ghana
Peru
Australia
#
Tarkwa
Damang
Cerro
Corona
St Ives
Agnew
Operating Results
Ore milled/treated (000 tons)
Sept 2008
9,210 5,507 1,137 441 1,817 308
June
2008
8,598 5,469 1,057
- 1,733 339
Yield (grams per ton)
Sept 2008
1.2 0.9 1.2
0.9 1.7 5.3
June 2008
1.4 1.0 1.5 - 1.8 5.0
Gold produced (kilograms)
Sept 2008
11,388 4,860 1,369 387 3,147 1,625
June
2008
11,653 5,245 1,555
- 3,156 1,697
Gold sold (kilograms)
Sept 2008
11,001 4,860 1,369
- 3,147 1,625
June
2008
11,653 5,245 1,555
- 3,156 1,697
Gold price received (Rand per kilogram)
Sept 2008
218,816 216,584 215,997
- 221,926 221,846
June
2008
221,351 221,049 221,672
- 221,578 221,567
Total cash costs (Rand per kilogram)
Sept 2008
153,295 136,481 196,567
- 176,168 122,831
June
2008
130,344 110,639 144,373
- 165,558 112,905
Notional cash expenditure (Rand per kilogram)
Sept 2008
244,099 256,008 222,790
569,509 245,440 146,338
June
2008
277,046 213,785 192,990
- 242,681 165,468
Operating costs (Rand per ton)
Sept 2008
192 125 242
120 308 614
June
2008
180 109 242 - 292 561
Financial Results (Rand million)
Revenue
Sept 2008
2,407.2 1,052.6 295.7
- 698.4 360.5
June
2008
2,579.4 1,159.4 344.7
- 699.3 376.0
Operating costs, net
Sept 2008
1,682.0 664.3 269.9
(20.1) 565.4 202.5
June
2008
1,534.0 584.9 225.2
- 526.5 197.4
- Operating costs
Sept 2008
1,765.5 688.7 274.8 52.7 560.2 189.1
June
2008
1,550.4 598.4 255.4
- 506.5 190.1
- Gold inventory change
Sept 2008
(83.5) (24.4) (4.9)
(72.8) 5.2 13.4
June
2008
(16.4) (13.5) (30.2)
- 20.0 7.3
Operating profit
Sept 2008
725.2 388.3 25.8 20.1 133.0 158.0
June
2008
1,045.4 574.5 119.5
- 172.8 178.6
Amortisation of mining assets
Sept 2008
401.7 120.5 25.4 31.2
224.6
June
2008
352.3 93.2 41.0 -
218.1
Net operating profit
Sept 2008
323.5 267.8 0.4
(11.1)
66.4
June
2008
693.1 481.3 78.5
-
133.3
Other income/(expense)
Sept 2008
(52.3) (36.5) (13.7)
(12.6)
10.5
June 2008
34.0 (2.3) (0.7) -
37.0
Profit before taxation
Sept 2008
271.2 231.3 (13.3)
(23.7)
76.9
June
2008
727.1 479.0 77.8
-
170.3
Mining and income taxation Sept
2008
132.1 84.8 3.2 1.4
42.7
June 2008
222.2 142.2 27.6
-
52.4
- Normal taxation
Sept 2008
125.0 89.9 8.9 -
26.2
June
2008
229.1 182.7 20.2
-
26.2
- Deferred taxation
Sept 2008
7.1 (5.1) (5.7) 1.4
16.5
June
2008
(6.9) (40.5)
7.4
-
26.2
Profit before exceptional items
Sept 2008
139.1 146.5 (16.5)
(25.1)
34.2
June 2008
504.9 336.8 50.2
-
117.9
Exceptional items
Sept 2008
0.2 - -
- 0.2
June
2008
(52.6) - -
- (52.6)
Net profit
Sept 2008
139.3 146.5 (16.5)
(25.1)
34.4
June
2008
452.3 336.8 50.2
-
65.3
Net profit excluding gains and losses on
foreign exchange, financial instruments and
exceptional items
Sept 2008
184.2 168.1 (8.2)
(25.1)
49.4
June 2008
490.6 336.7 50.2
-
103.7
Capital expenditure
Sept 2008
1,014.3 555.5 30.2
167.7 212.2 48.7
June 2008
1,604.6 522.9 44.7
686.9 259.4 90.7
Planned for next six months to March 2009
2,201.2 848.2 77.7
672.5 419.3 183.5
# 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.
19 I GOLD FIELDS RESULTS Q1F2009
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)
Sept 2008
12,698
3,488 1,536 971 790 191
June
2008
12,259
3,661 1,545 1,143 778 195
Yield (ounces per ton)
Sept 2008
0.068
0.141 0.135 0.161 0.128 0.143
June 2008
0.076
0.151 0.141 0.157 0.152 0.192
Gold produced (000 ounces)
Sept 2008
858.2
492.0 206.7 156.6 101.5 27.3
June
2008
927.9
553.2 218.2 179.3 118.3 37.5
Gold sold (000 ounces)
Sept 2008
845.7
492.0 206.7 156.6 101.5 27.3
June
2008
927.9
553.2 218.2 179.3 118.3 37.5
Gold price received (dollars per ounce)
Sept 2008
874
871 869 874 870 871
June
2008
895
901 900 899 905 900
Total cash costs (dollars per ounce)
Sept 2008
617
617 523 618 607
1,365
June
2008
502
488 414 477 478
1,002
Notional cash expenditure (dollars per ounce)
Sept 2008
909
855 680 844 830
2,328
June
2008
869
723 616 672 665
1,776
Operating costs (dollars per ton)
Sept 2008
43
91 74
105 82
205
June
2008
39
77 62 78 76
199
Financial Results ($ million)
Revenue
Sept 2008
739.5
428.5 179.6 136.9 88.2 23.8
June
2008
836.3
500.7 197.8 161.3 108.8 32.8
Operating costs, net
Sept 2008
536.1
318.8 113.8 101.5 64.4 39.2
June
2008
481.6
282.3 95.2 89.3 59.3 38.5
- Operating costs
Sept 2008
546.9
318.8 113.8 101.5 64.4 39.2
June
2008
484.1
282.3 95.2 89.3 59.3 38.5
- Gold inventory change
Sept 2008
(10.8)
- - - - -
June
2008
(2.5)
- - - - -
Operating profit
Sept 2008
203.3
109.7 65.8 35.4 23.8
(15.4)
June
2008
354.7
218.4 102.6 72.0 49.5 (5.7)
Amortisation of mining assets
#
Sept 2008
111.6
59.7 18.0 22.6 12.8 6.3
June 2008
95.3
49.6 18.6 18.4 11.7 0.8
Net operating profit
Sept 2008
91.7
49.9 47.8 12.8 11.0
(21.7)
June
2008
259.5
168.8 84.0 53.5 37.7 (6.5)
Other income/(expenses)
Sept 2008
(17.0)
(10.2) (3.9) (3.1) (1.3) (2.0)
June 2008
(1.0)
(5.5) (2.4) (0.9) (0.8) (1.5)
Profit before taxation
Sept 2008
74.7
39.7 43.9 9.7 9.7
(23.7)
June
2008
258.5
163.3 81.6 52.7 37.0 (8.0)
Mining and income taxation
Sept 2008
36.6
19.5 14.9 4.2 4.1 (3.6)
June
2008
86.6
57.6 31.2 18.6 14.6 (6.8)
- Normal taxation
Sept 2008
25.0
8.8 8.6 0.2
- -
June
2008
67.0
36.3 23.9 12.3 0.1
-
- Deferred taxation
Sept 2008
11.6
10.7 6.3 4.0 4.0
(3.6)
June
2008
19.6
21.3 7.4 6.3 14.5
(6.8)
Profit before exceptional items
Sept 2008
38.2
20.1 29.0 5.5 5.7
(20.1)
June
2008
171.9
105.7 50.4 34.1 22.4 (1.2)
Exceptional items
Sept 2008
14.9
14.9 0.2 -
-
14.6
June
2008
(13.3)
(6.0) 3.0 -
-
(9.0)
Net profit
Sept 2008
53.1
35.0 29.2 5.5 5.7 (5.4)
June 2008
158.6
99.7 53.3 34.1 22.4
(10.2)
Net profit excluding gains and losses on
foreign exchange and exceptional items
Sept 2008
49.9
26.1 29.1 5.5 5.7
(14.2)
June 2008
167.2
103.0 51.4 34.0 22.5 (4.9)
Capital expenditure
Sept 2008
232.9
101.8 26.8 30.8 19.8 24.4
June 2008
326.9
118.1 39.4 31.3 19.5 27.9
Planned for next six months to March 2009
523.9
246.3 63.3 67.9 40.8 74.4
Average exchange rates were US$1 = R7.74 and US$1 = R7.77 for the September 2008 and June 2008 quarters respectively. The Australian dollar exchange rates were A$1 = R6.97 and
A$1 = R7.33 for the September 2008 and June 2008 quarters respectively.
# As a significant portion of the acquisition price was allocated to tenements of St Ives and Agnew on endowment ounces and also as these two Australian operations are entitled to transfer
and then off-set tax losses from one company to another, it is not meaningful to split the income statement below operating profit. Figures may not add as they are rounded independently.
GOLD FIELDS RESULTS Q1F2009 I 20
Operating and financial results
UNITED STATES DOLLARS
International Operations
Australian Dollars
Total
Ghana
Peru
Australia
#
Australia
#
Tarkwa
Damang
Cerro
Corona
St Ives
Agnew
St Ives
Agnew
Operating Results
Ore milled/treated (000 tons)
Sept 2008
9,210 5,507
1,137 441 1,817 308
1,817 308
June
2008
8,598 5,469
1,057
- 1,733 339
1,733 339
Yield (ounces per ton)
Sept 2008
0.040 0.028
0.039
0.028 0.056
0.170
0.056 0.170
June 2008
0.044 0.031
0.047
- 0.059
0.161
0.059 0.161
Gold produced(000 ounces)
Sept 2008
366.1 156.3 44.0 12.4 101.2 52.2
101.2 52.2
June
2008
374.7 168.6 50.0
- 101.5 54.6
101.5 54.6
Gold sold (000 ounces)
Sept 2008
353.7 156.3 44.0
- 101.2 52.2
101.2 52.2
June
2008
374.7 168.6 50.0
- 101.5 54.6
101.5 54.6
Gold price received
Sept 2008
879 870
868 - 892
891
990 990
(dollars per ounce)
June 2008
886 885
887 - 887
887
949 949
Total cash costs
Sept 2008
616 548
790 - 708
494
786 548
(dollars per ounce)
June 2008
522 443
578 - 663
452
702 479
Notional cash expenditure
Sept 2008
981 1,029 895
2,289 986 588
1,095 653
(dollars per ounce)
June 2008
1,109 856
773 - 971
662 1,030 702
Operating costs
Sept 2008
25 16
31
15 40
79
44 88
(dollars per ton)
June 2008
23 14
31 - 38
72
40 77
Financial Results ($ million)
Revenue
Sept 2008
311.0 136.0 38.2
- 90.2 46.6
100.2 51.7
June
2008
335.6 151.1
44.8 - 90.6
49.1
95.8 52.2
Operating costs, net
Sept 2008
217.3 85.8
34.9
(2.6) 73.0
26.2
81.1 29.1
June
2008
199.2 76.0
29.3 - 68.5
25.4
72.6 26.7
- Operating costs
Sept 2008
228.1 89.0
35.5 6.8 72.4
24.4
80.4 27.1
June
2008
201.7 77.8
33.3 - 65.8
24.8
69.8 26.5
- Gold inventory change
Sept 2008
(10.8) (3.2)
(0.6)
(9.4) 0.7
1.7
0.7 1.9
June
2008
(2.5) (1.8)
(4.0) - 2.7
0.5
2.8 0.2
Operating profit
Sept 2008
93.7 50.2 3.3 2.6 17.2
20.4
19.1 22.7
June
2008
136.4 75.1
15.5 - 22.1
23.7
23.2 25.5
Amortisation of mining assets
#
Sept 2008
51.9 15.6 3.3 4.0
29.0
32.2
June
2008
45.7 12.0 5.4 -
28.3
29.9
Net operating profit
Sept 2008
41.8 34.6 0.1
(1.4)
8.6
9.5
June
2008
90.7 63.1
10.1 -
17.5
18.8
Other income/(expenses)
Sept 2008
(6.8) (4.7)
(1.8)
(1.6)
1.4
1.5
June
2008
4.5 (0.3) - -
4.9
5.1
Profit before taxation
Sept 2008
35.0 29.9
(1.7)
(3.1)
9.9
11.0
June
2008
95.2 62.7
10.1 -
22.3
23.9
Mining and income taxation Sept
2008
17.1 11.0 0.4 0.2
5.5
6.1
June
2008
29.0 18.6 3.6 -
6.8
7.2
- Normal taxation
Sept 2008
16.1 11.6 1.1 -
3.4
3.8
June
2008
30.7 24.7 2.7 -
3.4
3.6
- Deferred taxation
Sept 2008
0.9 (0.7)
(0.7) 0.2
2.1
2.4
June
2008
(1.7) (6.1) 1.0 -
3.4
3.6
Profit before exceptional
items
Sept 2008
18.0 18.9
(2.1)
(3.2)
4.4
4.9
June 2008
66.2 44.1 6.5 -
15.6
16.7
Exceptional items
Sept 2008
- -
-
-
-
-
June 2008
(7.3) -
-
- (7.3) (8.1)
Net profit
Sept 2008
18.0 18.9
(2.1)
(3.2)
4.4
4.9
June 2008
58.9 44.1 6.5 -
8.3
8.7
Net profit excluding gains and
losses on foreign exchange,
financial instruments and
exceptional items
Sept 2008
23.8 21.7
(1.1)
(3.2)
6.4
7.1
June 2008
64.2 44.0 6.5 -
13.7
14.6
Capital expenditure
Sept 2008
131.0 71.8 3.9
21.7 27.4 6.3
30.4 7.0
June 2008
208.8 68.8 5.7
88.4 34.0
12.0
36.4 13.0
Planned for next six months to March 2009
277.6 107.0 9.8
84.8 52.9
23.1
62.4 27.3
21 I GOLD FIELDS RESULTS Q1F2009
Underground and surface
South African rand and metric units
Operating Results
Total Mine
Operations
South African Operations
International Operations
Total
Driefontein
Kloof Beatrix
South
Deep
Total
Ghana Peru Australia
Tarkwa Damang
Cerro
Corona
St Ives
Agne
w
Ore milled / treated (000 ton)
- underground
Sept 2008
2,698
2,277 724 603 790 160 421 - - -
245
176
June
2008
2,749
2,379 760 688 778 153 370 - - -
184
186
- surface
Sept 2008
10,000
1,211 812 368
- 31
8,789 5,507 1,137 441 1,572 132
June 2008
9,510
1,282 785 455
- 42
8,228 5,469 1,057
- 1,549 153
- total
Sept 2008
12,698
3,488 1,536 971 790 191 9,210 5,507 1,137 441 1,817 308
June 2008
12,259
3,661 1,545 1,143 778 195 8,598 5,469 1,057
- 1,733 339
Yield (grams per ton)
- underground
Sept 2008
6.3
6.4 8.1 7.7 4.0 5.1 5.8 - - -
4.2
8.1
June
2008
6.7
6.8 8.2 7.5 4.7 7.4 6.3 - - -
4.5
8.1
- surface
Sept 2008
1.0
0.7 0.7 0.7 - 1.2 1.0 0.9 1.2 0.9 1.4 1.5
June
2008
1.1
0.8 0.7 0.9 - 0.9 1.1 1.0 1.5
- 1.5 1.3
- combined
Sept 2008
2.1
4.4 4.2 5.0 4.0 4.4 1.2 0.9 1.2 0.9 1.7 5.3
June 2008
2.4
4.7 4.4 4.9 4.7 6.0 1.4 1.0 1.5
- 1.8 5.0
Gold produced (kilograms)
- underground
Sept 2008
16,915
14,467 5,873 4,626 3,156 812 2,448 - - -
1,023
1,425
June
2008
18,517
16,188 6,211 5,168 3,678 1,131 2,329 - - -
831
1,498
- surface
Sept 2008
9,777
837 555 245
- 37
8,940 4,860 1,369 387 2,124 200
June
2008
10,344
1,020 575 409
- 36
9,324 5,245 1,555
- 2,325 199
- total
Sept 2008
26,692
15,304 6,428 4,871 3,156 849
11,388 4,860 1,369 387 3,147 1,625
June 2008
28,861
17,208 6,786 5,577 3,678 1,167
11,653 5,245 1,555
- 3,156 1,697
Operating costs (Rand per ton)
- underground
Sept 2008
1,008 1,038 1,127 1,241 631 1,884 843 - - -
828
863
June
2008
887
886 896 970 591
1,958 897 - - -
874
919
- surface
Sept 2008
151
85 80 100 - 55
161 125 242 120 227 282
June
2008
138
70 78 59 - 52
148 109 242
- 223 125
- total
Sept 2008
333
707 573 809 631
1,587 192 125 242 120 308 614
June 2008
306
600 480 607 591
1,548 180 109 242
- 292 561
GOLD FIELDS RESULTS Q1F2009 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
September 2008 quarter
June 2008 quarter
Reef
Carbon
Leader
Main
VCR
Carbon
Leader
Main VCR
Advanced (m)
1,451
1,009
1,368
4,066 846
1,625
Advanced on reef
(m)
319
528
82
836 364 149
Sampled (m)
339
459
36
912 300 108
Channel width
(cm)
33
42
16
73 51 123
Average value -
(g/t)
39.3
11.5
58.1
24.5 11.5 22.0
-
(cm.g/t)
1,299
479
916
1
1,792 590
2,700
Kloof
September 2008 quarter
June 2008 quarter
Reef
Kloof
Main
VCR Kloof Main VCR
Advanced (m)
181
1,039
5,533
170 1,273 6,339
Advanced on reef
(m)
113
248
674
41 28 770
Sampled (m)
105
225
636
60 294 693
Channel width
(cm)
197
69
133
135 37 105
Average value -
(g/t)
3.7
9.4
15.4
2.1 17.0 17.6
-
(cm.g/t)
724
647
2,057
290 633
1,849
Beatrix
September 2008 quarter
June 2008 quarter
Reef
Beatrix
Kalkoenkrans Beatrix
Kalkoenkrans
Advanced (m)
7,029
2,231
7,301 2,352
Advanced on reef
(m)
1,383
237
1,490 469
Sampled (m)
1,515
189
1,014 417
Channel width
(cm)
106
85
69 108
Average value -
(g/t)
6.2
22.4
9.1 11.6
-
(cm.g/t)
657
1,906
628 1,253
South Deep
September 2008 quarter
June 2008 quarter
Reef
VCR
Elsburg VCR
Elsburg
Advanced (m)
-
1,289
300 689
Advanced on reef
(m)
-
1,103
- 680
Sampled (m)
-
-
- -
Channel width
(cm)
-
-
2
- -
2
Average value -
(g/t)
-
4.6
- 6.7
-
(cm.g/t)
-
-
3
- -
3
1)
The secondary support initiative resulted in less development at the high grade shafts.
2)
Trackless development in the Elsburg reefs is evaluated by means of the block model.
3)
Full channel width not fully exposed in development, hence not reported.
23 I GOLD FIELDS RESULTS Q1F2009
Administration and corporate information
Corporate Secretary
CAIN FARREL
Tel: (+27)(11) 644 2525
Fax: (+27)(11) 484 0626
e-mail: cain.farrel@goldfields.co.za
Investor and Media Enquiries
WILLIE JACOBSZ
Tel: (+508) 358 0188
Mobile: (+857) 241 7127
e-mail: wjacobsz@gfexpl.com
Transfer Secretaries
South Africa
Computershare Investor Services
(Proprietary) Limited
Ground Floor
70 Marshall Street
Johannesburg, 2001
P O Box 61051
Marshalltown, 2107
Tel: (+27)(11) 370 5000
Fax: (+27)(11) 370 5271
United Kingdom
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
England
Tel: (+44)(20) 8639 3399
Fax: (+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.
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
Tel: (+44)(20) 7499 3916
Fax: (+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.bnymellon.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)
N J Holland * (Chief Executive Officer)
K Ansah
#
J G Hopwood
G Marcus
R P Menell
D N Murray
D M J Ncube
R L Pennant-Rea *
C I von Christierson
G M Wilson
* 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: 29 October 2008
GOLD FIELDS LIMITED
By:
Name: Mr W J Jacobsz
Title: Senior Vice President: Investor
Relations and Corporate Affairs