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 November 2010
Commission File Number 1-31318
Gold Fields Limited
(Translation of registrant's name into English)
150 Helen Rd.
Sandown, Sandton 2196
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- ________
Operations tracking guidance
JOHANNESBURG. 4 November 2010, Gold Fields Limited (NYSE & JSE: GFI) today announced net earnings excluding gains and losses on
foreign exchange, exceptional items and share of gain or loss of associates after taxation for the September 2010 quarter of R1,016 million
compared with earnings of R945 million and R625 million in the June 2010 and the September 2009 quarters respectively. In US dollar terms
net earnings excluding gains and losses on foreign exchange, exceptional items and share of gain or loss of associates after taxation for the
September 2010 quarter were US$138 million, compared with earnings of US$125 million and US$80 million for the June 2010 and
September 2009 quarters respectively.
September 2010 quarter salient features:
· US$1 billion bond completed post quarter end;
· Group attributable gold production up to 908,000 ounces;
· Total cash cost down from R166,215 per kilogram (US$688 per ounce) to R164,898 per kilogram (US$697 per ounce);
· NCE margin maintained at 18 per cent;
· South Deep new order mining right executed;
· Three BEE transactions approved by shareholders;
· Option agreement for 60 per cent interest in the undeveloped gold-copper Far Southeast deposit in the Philippines signed;
· Business process re-engineering across the Group commenced.
Statement by Nick Holland, Chief Executive Officer of Gold Fields:
“Gold Fields maintained the recent improvement in its production performance by raising attributable gold production to 908koz in the
September 2010 quarter from 898koz in the June 2010 quarter. This is the highest quarterly production since Q3 F2008. Despite seasonally
higher electricity charges in South Africa, as well as the implementation of the second year of the two year wage agreement with trade unions in
South Africa, sound cost controls enabled us to maintain an NCE margin of 18 per cent being the margin generated by the business after all
operating costs, capital expenditure (growth and sustaining) and brownfields exploration. Efforts will continue to improve our NCE margin over
the next 12 to 18 months, once the initial results of our business process re-engineering across the Group are realised. While maintaining the
emphasis on safety improvements, Gold Fields remains on track to achieve the production and cost guidance for the full year that was provided
on 6 August 2010.
We have made considerable advances in our growth strategy through the purchase of an option on the undeveloped gold-copper Far Southeast
(FSE) deposit in the Philippines. The agreement will allow us to conduct a major drilling programme and feasibility study on FSE over the next
18 months. If successful the FSE acquisition will significantly advance our target of achieving 1 million ounces for the Australasia region, either
in production or in development, by 2015. Gold Fields now has exciting growth projects in each of the regions in which it operates. In addition
to the FSE project for the Australasia region, we have the South Deep project in South Africa, the Yanfolila project in Mali (West Africa region)
and the Chucapaca project in Peru (South America region). We are also doing new metallurgical tests, using a new process on the 12 million
ounce APP project in Finland, and early indications are encouraging. All of these projects are progressing rapidly and put us on track towards
achieving our target of 5 million ounces, either in production or development, by 2015.
This growth strategy is supported by a strong balance sheet, which has been further bolstered with the successful issue of a US$1 billion, 10-
year bond at a coupon of 4.875 per cent. The order book was more than two times oversubscribed and the interest rate achieved was the
lowest by a South African corporate in the international US dollar bond market. The bond significantly improves our liquidity and maturity
profiles without increasing debt levels. The funds raised will be utilised to restructure our existing debt and we are now well placed to pursue the
growth opportunities mentioned above.
During our annual results presentation in August, I announced a comprehensive Business Process Re-engineering (BPR) exercise at
Driefontein, Kloof and Beatrix, Tarkwa and St Ives, aimed at increasing the NCE margin at each of these mines to at least 20 per cent.
Significant progress was made during the past quarter. As a first step, we have implemented a wide-ranging restructuring of the South Africa
region, led by the merger of the Driefontein and Kloof operational and management structures. Details of the restructuring are contained in this
report. We have also made significant progress at our Tarkwa mine in Ghana and St Ives in Australia.
During the June quarter Gold Fields executed the new order mining right for South Deep and the finalisation of the terms of the three
empowerment transactions. The deals, which include an Employee Share Option plan for 10.75 per cent of GFIMSA, a broad-based transaction
for 10 per cent of South Deep and a broad-based Black Economic Empowerment (BEE) transaction for 1 per cent of GFIMSA, excluding South
Deep, will enable us to achieve our 2014 mining charter ownership target and are expected to be completed by the end of December 2010.”
Stock data
JSE Limited – (GFI)
Number of shares in issue
Range - Quarter
ZAR94.90 – ZAR111.99
- at end September 2010
706,236,170
Average Volume - Quarter
2,350,999 shares / day
- average for the quarter
706,090,891
NYSE – (GFI)
Free Float
100 per cent
Range - Quarter
US$12.50 – US$15.34
ADR Ratio
1:1
Average Volume - Quarter
4,020,429 shares / day
Bloomberg / Reuters
GFISJ / GFLJ.J
1 I GOLD FIELDS RESULTS
Certain 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, Ghana, Australia, Peru and elsewhere; the ability
to achieve anticipated efficiencies and other cost savings in connection with past and future acquisitions, exploration and
development activities; decreases in the market price of gold and/or copper; hazards associated with underground and surface gold
mining; labour disruptions; availability terms and deployment of capital or credit; changes in government regulations, particularly
environmental regulations; and new legislation affecting mining and mineral rights; changes in exchange rates; currency
devaluations; inflation and other macro-economic factors, industrial action, temporary stoppages of mines for safety and unplanned
maintenance reasons; 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.
Health and safety
We regret to report that six fatalities occurred at the South Africa
region during the quarter and one fatality at the West Africa region.
In comparison with the previous quarter, the Group’s fatal injury
frequency rate regressed from 0.07 to 0.18. The lost time injury
frequency rate improved by 6 per cent from 4.62 to 4.33 and the
serious injury frequency rate regressed by 10 per cent from 2.30 to
2.54. The days lost injury frequency rate improved by 4 per cent
from 206 to 197.
Extensive management audits have been conducted in order to
determine areas for improvement in our current working practices.
In addition the Safety department has been reorganised to (i)
strengthen the focus on facilitating audits to test for compliance with
procedures and (ii) build competencies among supervisors and
crews. Lastly, a mobilisation and engagement programme is being
piloted at Kloof 4 shaft to assist supervisors to become more
effective in aligning teams to deliver a safe quality daily blast.
Financial review
Quarter ended 30 September 2010 compared with
quarter ended 30 June 2010
Revenue
Attributable gold production increased by 1 per cent from 898,000
ounces in the June quarter to 908,000 ounces in the September
quarter. At the South African operations, production increased from
488,000 ounces to 497,000 ounces. Attributable gold production at
the West African operations decreased by 6 per cent from 183,000
ounces to 172,000 ounces. Attributable equivalent gold production
at the South American operation increased by 10 per cent from
78,000 ounces to 86,000 ounces. At the Australian operations, gold
production increased by 3 per cent from 149,000 ounces to 153,000
ounces.
At the South African operations, gold production in the September
quarter at Driefontein, Beatrix and South Deep was 4 per cent, 12
per cent and 1 per cent higher than the June quarter at 6,017
kilograms, 3,202 kilograms and 2,198 kilograms. This was mainly
due to increased underground volumes at Beatrix and South Deep
and higher grades at Driefontein and Beatrix. At Kloof, production
decreased by 8 per cent from 4,369 kilograms to 4,041 kilograms
due to lower volumes from underground following two fatal
accidents at 4 shaft.
SOUTH AFRICAN RAND
Key statistics
UNITED STATES DOLLARS
Quarter
Quarter
September
2009
June
2010
September
2010
September
2010
June
2010
September
2009
28,165 27,929 28,232 kg
Gold produced*
oz (000)
908
898
906
147,343 166,215 164,898 R/kg Total cash cost $/oz
697
688
586
207,754 235,223 238,348 R/kg
Notional cash expenditure
$/oz
1,007
974
826
13,559 14,863 14,510 000 Tonnes milled/treated 000
14,510
14,863
13,559
241,164 287,454 289,329 R/kg Revenue $/oz
1,223
1,191
959
343 343 357 R/tonne Operating costs $/tonne
48
46
44
2,787 3,738 3,921 Rm Operating profit $m
533
496
356
38 42 43 per cent
Operating margin
per cent
43
42
38
14 18 18 per cent
NCE margin
per cent
18
18
14
1,007 900 701 Rm
Net earnings
$m
95
120
129
143 128 99 SA c.p.s.
US c.p.s.
13
17
18
452 1,039 699 Rm
Headline earnings
$m
95
138
58
64 147 99 SA c.p.s.
US c.p.s.
13
20
8
625 945
1,016 Rm
Net earnings excluding gains and losses
on foreign exchange, financial
instruments, exceptional items and
share of gain/(loss) of associates after
taxation
$m
138
125
80
89 134 144 SA c.p.s.
US c.p.s.
20
18
11
* All of the key statistics given above are managed figures, except for gold produced which is attributable equivalent production.
All operations are wholly owned except for Tarkwa and Damang in Ghana (71.1 per cent) and Cerro Corona in Peru (80.7 per cent).
Gold produced (and sales) throughout this report includes copper gold equivalents of approximately 6 per cent.
GOLD FIELDS RESULTS I 2
At the West African operations, managed gold production at Tarkwa
decreased by 7 per cent to 185,500 ounces for the quarter mainly
due to decreased heap leach throughput and a slightly lower head
grade. At Damang, gold production was similar at 56,500 ounces.
In South America, production at Cerro Corona increased by 10 per
cent from 96,500 equivalent ounces in the June quarter to 105,800
equivalent ounces in the September quarter. This increase was due
to an increase in ore processed and higher metal recoveries.
At the Australian operations, Agnew’s gold production increased by
11 per cent to 35,300 ounces due to increased stope availability and
an increase in grade from the high grade Kim south ore body
following rehabilitation work in the previous quarter. At St Ives, gold
production was similar at 117,900 ounces.
The average quarterly US dollar gold price achieved increased from
US$1,191 per ounce in the June quarter to US$1,223 per ounce in
the September quarter. The average rand/US dollar exchange rate
at R7.36 was 2 per cent stronger than the June quarter, while the
rand/Australian dollar at R6.59 was marginally stronger than the
R6.66 recorded in the June quarter. The rand gold price increased
from R287,454 per kilogram to R289,329 per kilogram. The
Australian dollar gold price was unchanged at A$1,359 per ounce.
Revenue increased from R8,803 million (US$1,169 million) in the
June quarter to R9,053 million (US$1,230 million) in the September
quarter due to the increased production and the higher gold price
received.
Operating costs
Net operating costs increased from R5,065 million (US$673 million)
in the June quarter to R5,132 million (US$697 million) in the
September quarter. Total cash cost decreased from R166,215 per
kilogram (US$688 per ounce) to R164,898 per kilogram (US$697
per ounce). This decrease was due to higher production.
At the South African operations, operating costs increased by 6 per
cent from R2,905 million (US$386 million) to R3,075 million
(US$418 million) mainly due to annual wage increases of 7.5 per
cent and the increased production. Total cash cost at the South
African operations increased by 4 per cent from R187,770 per
kilogram (US$778 per ounce) to R195,627 per kilogram (US$827
per ounce).
At the West African operations, operating costs including gold-in-
process movements, decreased by 5 per cent from US$151 million
(R1,140 million) in the June quarter to US$143 million (R1,051
million) in the September quarter. Tarkwa and Damang’s costs
decreased by US$6 million and US$3 million respectively due to
lower tonnes mined and processed, partly offset by increased power
costs. Total cash cost at the West African operations decreased
from US$623 per ounce in the June quarter to US$616 per ounce in
the September quarter due to the lower operating costs.
At Cerro Corona in South America, operating costs including gold-
in-process movements amounted to US$39 million (R290 million),
which was US$7 million more than the June quarter mainly due to
increased accrual for statutory workers participation and increased
freight costs. Total cash cost at Cerro Corona decreased from
US$369 per ounce in the June quarter to US$354 per ounce in the
September quarter due to higher production.
At the Australian operations, operating costs including gold-in-
process movements decreased from A$117 million (R779 million) to
A$109 million (R716 million). At St Ives, net operating costs
decreased by A$5 million to A$84 million (R552 million) mainly due
to lower maintenance costs and lower volumes. At Agnew,
operating costs were A$3 million lower than the previous quarter at
A$25 million (R164 million) due to the build-up of gold-in-process.
Total cash cost for the region decreased by 6 per cent from US$703
per ounce (A$792 per ounce) to US$658 per ounce (A$735 per
ounce).
Operating margin
The net effect of the changes in revenue and costs, after taking into
account gold-in-process movements, was a 5 per cent increase in
operating profit from R3,738 million (US$496 million) in the June
quarter to R3,921 million (US$533 million) in the September quarter
in line with the higher production and the higher gold prices
achieved. The Group operating margin was 43 per cent compared
with 42 per cent in the June quarter. The margin at the South
African operations decreased from 34 per cent to 31 per cent. At
the West African operations the margin increased from 51 per cent
to 52 per cent. At Cerro Corona in South America the margin
increased from 68 per cent to 72 per cent, while at the Australian
operations the margin increased from 42 per cent to 48 per cent.
Amortisation
Amortisation increased from R1,368 million (US$182 million) in the
June quarter to R1,443 million (US$196 million) in the September
quarter in line with the higher production. At the South African
operations amortisation increased from R661 million (US$88 million)
to R716 million (US$97 million). This was mainly due to the
increase in production at all the operations, except Kloof.
At the West African operations, amortisation decreased from US$39
million (R293 million) to US$35 million (R254 million). This decrease
was mainly at Tarkwa in line with the lower production. At the South
America operation, amortisation was similar at US$15 million (R110
million). At the Australian operations amortisation increased from
A$40 million (R266 million) to AS$50 million (R327 million) mainly
due to changes in the production mix combined with a small
increase in production for the region.
Other
Net interest paid of R70 million (US$10 million) in the September
quarter compares with net interest paid of R33 million (US$4 million)
in the June quarter. In the September quarter interest paid of R120
million (US$16 million) was partly offset by interest received of R35
million (US$4 million) and interest capitalised of R15 million (US$2
million). This compares with interest paid of R146 million (US$19
million), partly offset by interest received of R90 million (US$12
million) and interest capitalised of R23 million (US$3 million) in the
June quarter. The lower interest received in the September quarter
was due to a change in the mix between onshore and offshore cash
balances.
The share of loss of associates after taxation of R218 million
(US$30 million) in the September quarter compares with a gain of
R86 million (US$11 million) in the June quarter. The September
quarter includes R236 million (US$32 million) relating to a
translation loss as a result of Rusoro applying hyper inflationary
accounting to its investments in Venezuela partly offset by R18
million (US$2 million) gains from the Group’s 35 per cent interest in
Rand Refinery. As a result of the loss above, the investment in
Rusoro has been written down to nil. In the June quarter R68 million
(US$9 million) related to a translation gain as a result of Rusoro
applying hyper inflationary accounting to its investments in
Venezuela, and R18 million (US$2 million) related to gains from
Rand Refinery.
The loss on foreign exchange of R11 million (US$2 million) in the
September quarter compares with a gain of R6 million (US$1
million) in the June quarter. These exchange differences relate to
the conversion of offshore cash holdings into their functional
currencies.
The loss on financial instruments of R3 million (US$1 million) in the
September quarter, compares with a gain of R19 million (US$2
million) in the June quarter. The September quarter includes losses
on outstanding US$/ZAR and A$/ZAR forward cover contracts. The
gain in the June quarter included realised gains of R13 million
(US$2 million) on the Cerro Corona copper financial instruments
3 I GOLD FIELDS RESULTS
and a R6 million (US$1 million) gain on US$/ZAR forward cover
contracts taken out. Refer to page 15 of this report for more detail.
Share based payments of R119 million (US$16 million) was R73
million (US$10 million) higher than the June quarter’s R46 million
(US$6 million) due to year-end forfeitures in the June quarter.
Other costs decreased from R120 million (US$16 million) in the
June quarter to R24 million (US$3 million) in the September quarter.
This decrease was mainly due to lower bank facility fees at the
South African operations and a decrease in research and
development expenditure. The September quarter included
sponsorships to the University of Johannesburg, while the June
quarter included sponsorships to the University of the
Witwatersrand.
Exploration
Exploration expenditure decreased from R186 million (US$25
million) in the June quarter to R124 million (US$17 million) in the
September quarter due to a decrease in activity during the rainy
season and timing of expenditure. Refer to the Exploration and
corporate development section of this report for more detail of
exploration activities.
Exceptional items
The exceptional loss in the September quarter of R138 million
(US$19 million) was as a result of voluntary separation packages of
R118 million (US$16 million) and costs incurred of R24 million
(US$3 million) on business process re-engineering at the South
African, Ghanaian and Australian operations partly offset by profit
on the sale of assets and investments of R4 million (US$0.5 million).
The exceptional loss in the June quarter of R144 million (US$19
million) was mainly as a result of an impairment on our investment in
Rusoro of R197 million (US$26 million), partly offset by a profit on
the disposal of the remaining Eldorado shares of R49 million (US$6
million).
Taxation
Taxation for the quarter amounted to R849 million (US$115 million)
compared with R865 million (US$115 million) in the June quarter.
The tax expense includes normal and deferred taxation at all
operations, together with government royalties.
Earnings
Net profit attributable to ordinary shareholders amounted to R701
million (US$95 million) or 99 SA cents per share (US$0.13 per
share), compared with R900 million (US$120 million) or 128 SA
cents per share (US$0.17 per share) in the June quarter.
Headline earnings i.e. earnings less the after tax effect of asset
sales, impairments and the sale of investments, amounted to R699
million (US$95 million) or 99 SA cents per share (US$0.13 per
share), compared with earnings of R1,039 million (US$138 million)
or 147 SA cents per share (US$0.20 per share) in the June quarter.
Earnings excluding exceptional items as well as gains and losses on
foreign exchange, financial instruments and gains or losses of
associates after taxation amounted to R1,016 million (US$138
million) or 144 SA cents per share (US$0.20 per share), compared
with earnings of R945 million (US$125 million) or 134 SA cents per
share (US$0.18 per share) reported in the June quarter.
Cash flow
Cash inflow from operating activities for the quarter amounted to
R2,251 million (US$308 million), compared with R3,650 million
(US$482 million) in the June quarter. This quarter on quarter
decrease of R1.4 billion (US$174 million) was mainly due to
movements in working capital. The investment into working capital
of R753 million (US$102 million) in the September quarter is
expected to be significantly less in the December quarter.
In the September quarter dividends paid to ordinary shareholders
amounted to R494 million (US$67 million). No dividends were paid
to ordinary shareholders in the June quarter. In the June quarter
R175 million (US$23 million) was paid to non controlling interest
holders at Tarkwa and Damang.
Capital expenditure increased from R2,157 million (US$287 million)
in the June quarter to R2,225 million (US$302 million) in the
September quarter.
At the South African operations, capital expenditure increased from
R1,236 million (US$164 million) in the June quarter to R1,317
million
(US$179 million) in the September quarter mainly due to
increased capital expenditure at South Deep. Capital expenditure at
South Deep amounted to R492 million (US$ 67 million) in the
September quarter compared with R399 million (US$53 milion) in
the June quarter, with the majority of the expenditure on
development and the ventilation shaft deepening and infrastructure.
Expenditure on ore reserve development (ORD) was similar at R493
million (US$66 million). Driefontein’s ORD increased from R184
million to R215 million, Kloof’s ORD decreased from R198 million to
R180 million and Beatrix’s ORD decreased from R113 million to R98
million quarter on quarter.
At the West African operations, capital expenditure increased from
US$53 million to US$74 million due to increased expenditure on
capital waste removal at Teberebie and Pepe, new mining
equipment and expenditure on mining fleet at Damang as a
consequence of the impending change from contract to owner
mining. In South America, at Cerro Corona, capital expenditure
decreased from US$14 million to US$11 million due to timing of
work.
At the Australian operations, capital expenditure decreased from
A$61 million to A$42 million for the quarter. At Agnew, capital
expenditure decreased from A$26 million to A$11 million due to the
acquisition of fleet in the June quarter due to the conversion from
contract mining to owner mining. St Ives decreased from A$35
million to A$31 million due to less development expenditure required
this quarter on the Athena project.
Purchase of investments of R23 million (US$3 million) mainly relates
to a secured equipment loan made to one of our mining contractors
at St Ives.
Net cash inflow from financing activities in the September quarter
amounted to R1,189 million (US$169 million). Loans received in the
September quarter amounted to R4.0 billion (US$557 million). This
relates to the issue of commercial paper of R1.8 billion (US$248
million), Cerro Corona non-recourse term loan of R1.4 billion
(US$200 million), an additional R492 million (US$70 million) draw
down on an offshore facility and R290 million (US$39 million)
working capital loans. Loans repaid amounted to R2.8 billion
(US$390 million), consisting primarily of R2.1 billion (US$290
million) refinancing of the South African commercial paper
programme and final repayment of the project finance facility at
Cerro Corona of R705 million (US$100 million).
Net cash inflow for the September quarter at R717 million (US$107
million) compared with R918 million (US$131 million) in the June
quarter. After accounting for a negative translation adjustment of
R194 million (positive US$6 million) on offshore cash balances, the
net cash inflow for the September quarter was R523 million
(US$113 million). The cash balance at the end of September was
R4,313 million (US$614 million) compared with R3,791 million
(US$501 million) at the end of June.
Notional cash expenditure (NCE)
Notional cash expenditure is defined as operating costs (including
general and administration) plus capital expenditure, which includes
brownfields exploration, and is reported on a per kilogram and per
ounce basis – refer to the detailed table on page 24 of this report.
GOLD FIELDS RESULTS I 4
NCE per ounce determines how much free cash flow is generated in
order to pay taxation, interest, greenfields exploration and
dividends.
The NCE for the Group for the September quarter amounted to
R238,348 per kilogram (US$1,007 per ounce) compared with
R235,223 per kilogram (US$974 per ounce) in the June quarter.
The NCE margin for the Group of 18 per cent was similar to the
June quarter.
At the South African operations, NCE increased from R272,669 per
kilogram (US$1,129 per ounce) to R284,118 per kilogram
(US$1,201 per ounce). The NCE margin of 1 per cent in the
September quarter compares with 6 per cent in the June quarter.
This decrease was due to the increase in operating cost and capital
expenditure, partially offset by the increase in production. The
overall NCE margin is impacted by the ongoing funding of the South
Deep growth project by the balance of the operations in the South
Africa region.
At the West African operations, NCE increased from US$795 per
ounce to US$883 per ounce and the NCE margin decreased from
34 per cent to 28 per cent due to the lower production and
increased capital expenditure.
At the South American operation, NCE improved by 9 per cent from
US$502 per ounce in the June quarter to US$456 per ounce in the
September quarter due to the increased production together with a
reduction in capital expenditure. The NCE margin improved from 54
per cent to 64 per cent. At the Australian operations NCE improved
from US$1,080 per ounce (A$1,217 per ounce) in the June quarter
to US$951 per ounce (A$1,062 per ounce) in the September quarter
resulting in an increase in NCE margin from 10 per cent to 22 per
cent due to increased production and lower capital expenditure.
Balance sheet (Investments and net debt)
Investments decreased from R1,036 million (US$137 million) at 30
June 2010 to R885 million (US$126 million) at 30 September 2010
mainly due to the write-down of Rusoro.
Net debt (long-term loans plus current portion of long-term loans
less cash and deposits) increased marginally from R4,697 million
(US$620 million) in the June quarter to R5,076 million (US$722
million) in the September quarter.
Detailed and operational review
South Africa region
Cost and revenue optimisation initiatives
During financial 2008, the South Africa region reviewed the suite of
projects under Project 500 and identified the following for
implementation over two to three years. Progress on these projects
is set out below.
Project 1M
Project 1M is a productivity initiative that aims to improve quality
mining volumes by increasing the face advance by between 5 and
10 per cent per annum based on financial year 2009 actuals.
This should be achieved through the following key improvement
initiatives:
· drilling and blasting practices to improve advance per blast;
· support, cleaning and sweeping practices to improve blasting
frequency;
· mining cycle, labour availability and training; and
· improved pay face availability.
Average face advance improved marginally from 6.7 metres to 6.8
metres in the September quarter. Safety related production
interruptions, extraction rate limits required for management of
seismic risk, limitations on the face time available and unplanned
crew moves, which are mainly necessitated by seismic damage or
loss of grade, continue to remain the major factors that inhibit
improvements in face advance. Project 1M remains focused on
identifying and addressing the key constraints that affect stope team
productivity on a shaft by shaft basis and improving flexibility to
counter some of these issues.
Project 2M
Project 2M is a technology initiative aimed at mechanising all flat-
end development (i.e. development on the horizontal plane) at the
long-life shafts of Driefontein, Kloof and Beatrix. South Deep is
excluded as it is already a fully mechanised mine. The aim of the
project is to improve safety and productivity, reduce development
costs and increase ore reserve flexibility through higher monthly
advance rates.
For the September quarter, 67.1 per cent of flat-end metres were
advanced by mechanised means at the long life shafts at
Driefontein, Kloof and Beatrix compared with 66.8 per cent in the
June quarter.
Three additional rigs are being put into service during the December
quarter to mechanise ends that are currently being mined
conventionally. Constraints that are inhibiting the rigs from
achieving their potential advance rates are being addressed by
optimising maintenance arrangements, implementing electro-
hydraulic loaders, re-training drill rig operators and reviewing
operating practices and logistics especially on the cleaning cycle.
Project 3M (Business process re-engineering)
Refer to page 10 of this report for the background to this initiative
and an overview of post quarter-end developments.
Project 4M
Project 4M focuses on the Mine Health and Safety Council (MHSC)
milestones agreed to on 15 June 2003 at a tripartite health and
safety summit, comprising representatives from Government,
organised labour and mining companies. The focus is on achieving
occupational health and safety targets and milestones over a 10-
year period. The commitment was driven by the need to achieve
greater improvements in occupational health and safety in the
mining industry.
One of the milestone targets is that no machine or piece of
equipment may generate a sound pressure level in excess of 110
dB (A) after December 2013. In order to achieve this target the
company is focusing on reducing the noise at source. Good
progress has been made and by the end of the quarter 97 per cent
of equipment measured was below 110 dB (A).
Silicosis remains one of the biggest health risks associated with the
gold mining industry. In order to meet the silicosis targets the
company has several interventions in place, which include:
· the upgrading of tip filters by replacing complete unit
installations or the installation of additional first stage pre-
filtration systems to increase dust filtration efficiency and to
remove larger particles of dust before it enters the primary dust
filtration unit;
· the use of foggers to trap dust particles liberated from tipping
points before dust enters the main air stream;
· footwall treatment to bind dust on the footwall and prevent it
from being liberated into the intake air ways; and
· installation of tip doors. The tip doors are installed into the
tipping points and remain closed when no tipping is taking place,
thus reducing dust from entering the intake airways. The tip
doors are spring loaded hence they are self-closing after tipping
is completed.
5 I GOLD FIELDS RESULTS
Progress to date on the above initiatives is an implementation rate
of 50 per cent, 83 per cent, 100 per cent and 65 per cent
respectively across the South African operations. This progress
should enable the Group to meet its targets.
Of the individual gravimetric dust sample measurements taken
during the June quarter 97 per cent were below the occupational
exposure limit of 0.1 milligrams per cubic metre, thus meeting the
target of not less than 95 per cent of individual samples below the
occupational exposure limit of 0.1 milligrams per cubic metre.
Progress against all interventions is monitored monthly and
reviewed quarterly.
South Africa region
Driefontein
September
2010
June
2010
Gold produced
- kg
6,017
5,783
-
000’oz
193.5
185.9
Yield - underground
- g/t
6.8
6.1
- combined
- g/t
4.0
3.6
Total cash cost
- R/kg
171,780
175,584
-
US$/oz
726
727
Notional cash expenditure
- R/kg
229,666
233,910
-
US$/oz
971
969
NCE margin
- %
20
19
Gold production increased from 5,783 kilograms (185,900 ounces)
in the June quarter to 6,017 kilograms (193,500 ounces) in the
September quarter.
Underground tonnes milled decreased from 841,000 tonnes in the
June quarter to 793,000 tonnes in the September quarter due to a
decrease in milling width as a result of a reduction in stope width to
improve mining quality. Production throughout the quarter was also
affected by a lack of flexibility at 2 and 4 shafts, a fire at 4 shaft and
the impact of safety related stoppages particularly at 4 and 5 shafts.
Underground yield increased from 6.1 grams per tonne to 6.8 grams
per tonne due to an increase in the mine call factor, a decrease in
development waste milled and a general improvement in average
mining grades at 1, 4 and 8 shafts.
Surface tonnes milled decreased from 753,000 tonnes to 728,000
tonnes and surface yield remained at 0.9 grams per tonne.
Main development increased by 11 per cent for the quarter and on-
reef development increased by 3 per cent. The average
development value increased from 1,592 centimeter grams per
tonne in the June quarter to 1,872 centimeter grams per tonne in the
September quarter, due to an improvement in the values at 1, 4 and
5 shafts.
Operating costs increased from R1,019 million (US$135 million) to
R1,038
million (US$141 million). This increase was mainly due to
annual wage increases effective from July and higher stores
consumption. Cost increases have been partially offset by a
decrease in employees in service. Total cash cost decreased from
R175,584 per kilogram (US$727 per ounce) to R171,780 per
kilogram (US$726 per ounce).
Operating profit increased from R656 million (US$87 million) in the
June quarter to R696 million (US$95 million) in the September
quarter mainly due to the higher production.
Capital expenditure increased from R334 million (US$44 million) to
R344 million (US$47million) in the September quarter due to
increased capitalised development and housing upgrades, partially
offset by reduced spending on new technology and technical
projects.
Notional cash expenditure decreased from R233,910 per kilogram
(US$969 per ounce) to R229,666 per kilogram (US$971 per ounce)
as a result of the higher gold production.
Kloof
September
2010
June
2010
Gold produced
- kg
4,041
4,369
-
000’oz
129.9
140.5
Yield - underground
- g/t
6.4
6.5
- combined
- g/t
3.7
3.8
Total cash cost
- R/kg
219,277
196,201
-
US$/oz
927
813
Notional cash expenditure
- R/kg
308,488
274,319
-
US$/oz
1,304
1,136
NCE margin
- %
(7)
5
Gold production decreased from 4,369 kilograms (140,500 ounces)
in the June quarter to 4,041 kilograms (129,900 ounces) in the
September quarter. Underground tonnes milled decreased from
599,000 tonnes to 577,000 tonnes with a decrease in yield from 6.5
grams per tonne to 6.4 grams per tonne. Safety stoppages
following two fatalities at 4 shaft on 18 and 20 August respectively,
severely affected production. Surface tonnes milled decreased from
558,000 tonnes to 529,000 tonnes, while the yield reduced from 0.9
grams per tonne to 0.6 grams per tonne.
Main development decreased by 18 per cent and on-reef
development decreased by 9 per cent largely as a result of the
safety stoppages. The average development value decreased from
2,378 centimetre grams per tonne in the June quarter to 2,288
centimetre grams per tonne in the September quarter.
Operating costs increased from R883 million (US$117 million) in the
June quarter to R911 million (US$124 million) in the September
quarter. The increase in operating costs was largely as a result of
the annual wage increase and a decrease in ore reserve
development capitalised. Total cash cost increased from R196,201
per kilogram (US$813 per ounce) to R219,277 per kilogram
(US$927 per ounce) due to higher operating cost and lower gold
production.
Operating profit decreased from R380 million (US$50 million) in the
June quarter to R252 million (US$34 million) in the September
quarter.
Capital expenditure increased from R316 million (US$42 million) to
R336 million (US$46 million) in the September quarter.
Notional cash expenditure increased from R274,319 per kilogram
(US$1,136 per ounce) to R308,488 per kilogram (US$1,304 per
ounce) due to the lower gold production, increased cost and
increased capital expenditure.
GOLD FIELDS RESULTS I 6
Beatrix
September
2010
June
2010
Gold produced
- kg
3,202
2,856
-
000’oz
102.9
91.8
Yield - underground
- g/t
4.5
4.1
- combined
- g/t
3.4
4.0
Total cash cost
- R/kg
191,599
189,216
-
US$/oz
810
784
Notional cash expenditure
- R/kg
241,037
260,049
-
US$/oz
1,019
1,077
NCE margin
- %
16
10
Gold production increased from 2,856 kilograms (91,800 ounces) in
the June quarter to 3,202 kilograms (102,900 ounces) in the
September quarter. Underground tonnes milled decreased from
697,000 tonnes to 686,000 tonnes offset by the yield which
increased from 4.1 grams per tonne to 4.5 grams per tonne. Surface
gold increased from 18 kilograms to 126 kilograms as a result of
milling 251,000 tonnes of surface mineralised waste this quarter
compared with 20,000 tonnes in the June quarter. The increase in
the gold price and available milling capacity at No 2 plant warrants
the processing of surface ore of which 5.7 million tonnes of
stockpiles are available at an average grade of more than 0.4 grams
per tonne and at a cost of less than R200,000 per kilogram.
Main development decreased from 7,990 metres in the June quarter
to 6,486 metres in the September quarter in line with the mine plan.
The on-reef development increased from 1,537 metres to 1,850
metres and the average main development value decreased from
997 centimetre grams per tonne in the March quarter to 961
centimetre grams per tonne in the June quarter, mainly due to the
value variability of the zones being developed.
Operating costs increased from R555 million (US$74 million) in the
June quarter to R627 million (US$85 million) in the September
quarter. This increase was mainly due to the increased expenditure
on renewals and replacements, a decrease in ore reserve
development capitalised and additional surface ore transported from
the West section to the No. 1 plant. Total cash cost increased
marginally from R189,216 per kilogram (US$784 per ounce) in the
June quarter to R191,599 per kilogram (US$810 per ounce) in the
September quarter.
Operating profit increased from R271 million (US$36 million) in the
June quarter to R294 million (US$40 million) in the September
quarter due to the increased gold production.
Capital expenditure decreased from R188 million (US$25 million) in
the June quarter to R145 million (US$20 million) in the September
quarter with the majority spent on infrastructure upgrades and ore
reserve development.
Notional cash expenditure decreased from R260,049 per kilogram
(US$1,077 per ounce) in the June quarter to R241,037 per kilogram
(US$1,019 per ounce) in the September quarter due to the
increased production.
South Deep project
September
2010
June
2010
Gold produced
- kg
2,198
2,176
-
000’oz
70.7
70.0
Yield - underground
- g/t
5.9
6.3
- combined
- g/t
4.4
4.7
Total cash cost
- R/kg
223,294
201,333
-
US$/oz
944
834
Notional cash expenditure
- R/kg
451,137
388,925
-
US$/oz
1,907
1,611
NCE margin
- %
(57)
(34)
Gold production at South Deep increased from 2,176 kilograms
(70,000 ounces) in the June quarter to 2,198 kilograms (70,700
ounces) in the September quarter, due to improved underground
mining volumes. Production for both August and September was at
record levels of 142,000 reef tonnes broken per month with
increased production from long hole stoping and benching.
Underground ore processed increased from 345,000 tonnes in the
June quarter to 370,000 tonnes in the September quarter. Total
tonnes milled, which included 20,000 tonnes of surface sources and
105,000 tonnes of off reef development, increased by 7 per cent
from 463,000 tonnes in the June quarter to 495,000 tonnes in the
September quarter. Reef yield decreased from 6.3 grams per tonne
in the June quarter to 5.9 grams per tonne in the September
quarter, primarily due to lower grades in the 87 1 West and 2 West
projects and the mining mix.
Development increased by 22 per cent for the September quarter
from 2,449 metres to 2,982 metres. The new mine capital
development in phase 1, sub 95 level, increased by 14 per cent for
the September quarter from 821 metres to 935 metres.
Development in the current mine areas above 95 level increased by
30 per cent for the September quarter from 1,369 metres to 1,774
metres. The increase in development was primarily due to an
increase in drill rig availability and utilisation, as well as improved
rock handling at Twin shaft. Raiseboring increased from 259 metres
in the June quarter to 273 metres in the September quarter.
Operating costs increased from R448 million (US$60 million) in the
June quarter to R499 million (US$68 million) in the September
quarter. This increase was mainly due to the increase in
underground ore production, annual wage increases, higher
electricity costs and increased expenditure as per the planned
project build-up. The total cash cost increased by 11 per cent from
R201,333 per kilogram (US$834 per ounce) in the June quarter to
R223,294 per kilogram (US$944 per ounce) in the September
quarter.
Operating profit decreased from R184 million (US$24 million) in the
June quarter to R134 million (US$18 million) in the September
quarter due to the higher operating costs.
Capital expenditure increased by 23 per cent from R399 million
(US$53 million) in the June quarter to R492 million (US$67 million)
in the September quarter in line with the project plan. The major
capital expenditure was on development, the ventilation shaft
deepening and infrastructure, and construction of the new tailings
dam facility.
Notional cash expenditure increased by 16 per cent from R388,925
per kilogram (US$1,611 per ounce) in the June quarter to R451,137
per kilogram (US$1,907 per ounce) in the September quarter due to
higher capital expenditure and operating costs.
7 I GOLD FIELDS RESULTS
South Deep will continue to focus on delivering to the planned
development metres, completing the Twin shaft infrastructure and
the new tailings dam and increasing production, as per the build-up
plan.
West Africa region
Ghana
Tarkwa
September
2010
June
2010
Gold produced
- 000’oz
185.5
200.2
Yield - heap leach
- g/t
0.5
0.6
- CIL plant
- g/t
1.5
1.5
- combined
- g/t
1.0
1.0
Total cash cost
- US$/oz
601
599
Notional cash expenditure
- US$/oz
885
771
NCE margin
- %
28
36
Gold production decreased from 200,200 ounces in the June
quarter to 185,500 ounces in the September quarter. The lower
production was as a result of decreased heap leach throughput,
decreased heap leach head grade and reduced plant availability
due to scheduled mill relining.
Total tonnes mined, including capital stripping, decreased from 34.9
million tonnes in the June quarter to 34.2 million tonnes in the
September quarter. Ore mined decreased from 5.8 million tonnes to
5.2 million tonnes, largely due to reduced feed required for the North
heap leach and CIL plant as a consequence of the harder ore
restricting throughput. Mined grade of 1.23 grams per tonne in the
September quarter was marginally lower than the 1.24 grams per
tonne in the June quarter. The strip ratio increased from 5.03 in the
June quarter to 5.54 in the September quarter.
The total feed to the CIL plant decreased by 6 per cent from 2.97
million tonnes in the June quarter to 2.79 million tonnes in the
September quarter mainly due to a major relining on the SAG and
Ball mill. Yield from the CIL plant was similar to the previous quarter
at 1.45 grams per tonne. The CIL plant produced 133,900 ounces
in the September quarter compared with 137,500 ounces in the
June quarter, a decrease of 3 per cent quarter on quarter.
Total feed to the North heap leach decreased by 12 per cent from
2.37 million tonnes in the June quarter to 2.08 million tonnes in the
September quarter. North heap leach yield for the quarter was 0.61
grams per tonne, a decrease of 0.05 grams per tonne against the
previous quarter. The “High Pressure Grinding Roller” (HPGR) unit
at the South heap leach processed 0.88 million tonnes, an increase
of 5 per cent on the 0.84 million tonnes achieved in the June
quarter. The average yield of 0.39 grams per tonne from HPGR
production represented a decrease of 0.06 grams per tonne against
the June quarter. The heap leach section produced 51,600 ounces,
18 per cent less than the previous quarter. The shortfall was
attributable to increased ore hardness, resulting in lower volumes of
processed feed and lower recoveries. The crushing circuit at the
North heap leach is planned to be upgraded to sustain and improve
the throughput for more competent ore.
Operating costs, including gold-in-process movements, decreased
from US$113 million (R854 million) in the June quarter to US$108
million (R791 million) in the September quarter. The decrease was
mainly as a result of the lower tonnes mined and processed,
partially offset by increased power costs. Total cash cost was
similar at US$601 per ounce.
Operating profit decreased from US$125 million (R945 million) in the
June quarter to US$119 million (R879 million) in the September
quarter due to lower production.
Capital expenditure increased from US$41 million (R309 million) in
the June quarter to US$61 million (R448 million) in the September
quarter, with new mining equipment, the tailings dam expansion and
pre-stripping at the Teberebie and Pepe cutbacks being the major
items.
Notional cash expenditure increased from US$771 per ounce to
US$885 per ounce, reflecting the decreased gold production and
increased capital expenditure, partially offset by the decreased
operating cost.
Damang
September
2010
June
2010
Gold produced
- 000’oz
56.5
56.8
Yield - g/t
1.4
1.3
Total cash cost
- US$/oz
666
704
Notional cash expenditure
- US$/oz
879
881
NCE margin
- %
28
26
Gold production decreased marginally from 56,800 ounces in the
June quarter to 56,500 ounces in the September quarter.
Total tonnes mined, including capital stripping at 3.8 million tonnes
in the September quarter was slightly higher than the 3.4 million
tonnes achieved in the June quarter. Ore mined was similar at 1.1
million tonnes and the strip ratio achieved was 2.51 compared with
the June quarter’s 1.96.
Tonnes processed at 1.2 million tonnes was slightly lower than the
1.3 million tonnes in the June quarter mainly due to milling more
fresh high grade ore.
Operating costs, including gold-in-process movements decreased
from US$38 million (R286 million) in the June quarter to US$35
million (R260 million) in the September quarter mainly due to lower
tonnes mined and processed, partially offset by increased power
costs. Total cash cost decreased from US$704 per ounce to
US$666 per ounce.
Operating profit increased from US$30 million (R225 million) in the
June quarter to US$34 million (R252 million) in the September
quarter. This was due to the higher gold price received and the
reduction in operating costs.
Capital expenditure increased from US$12 million (R87 million) in
the June quarter to US$13 million (R97 million) in the September
quarter, with the majority of the spend being on exploration and the
owner mining project.
Notional cash expenditure decreased from US$881 per ounce in the
June quarter to US$879 per ounce in the September quarter, mainly
as a result of the lower operating cost.
GOLD FIELDS RESULTS I 8
South America region
Peru
Cerro Corona
September
2010
June
2010
Gold produced
- 000’oz
45.9
33.7
Copper produced
- tonnes
10,250
10,500
Total equivalent gold produced - 000’ eq oz
105.8
96.5
Total equivalent gold sold
- 000’ eq oz
113.7
90.2
Yield - gold
- g/t
0.9
0.7
- copper
- per cent
0.66
0.74
- combined
- g/t
2.0
2.0
Total cash cost
- US$/eq oz
354
369
Notional cash expenditure
- US$/eq oz
456
502
NCE margin
- %
64
54
Gold price *
- US$/oz
1,222
1,184
Copper price *
- US$/t
7,141
7,090
* Average spot price used to calculate total equivalent gold
produced
Gold produced increased from 33,700 ounces in the June quarter to
45,900 ounces in the September quarter and copper produced
decreased from 10,500 tonnes to 10,250 tonnes. During the
September quarter concentrate with payable content of 48,400
ounces of gold was sold at an average gold price of US$1,234 per
ounce and 11,000 tonnes of copper were sold at an average copper
price of US$6,648 per tonne, net of treatment and refining charges.
Total tonnes mined decreased from 3.28 million tonnes in the June
quarter to 3.15 million tonnes in the September quarter, reflecting
lower waste mining. Ore mined at 1.63 million tonnes was 9 per
cent higher than the 1.49 million tonnes in the June quarter resulting
in a strip ratio of 0.94 compared with 1.2 in the June quarter.
The higher gold production compared with the June quarter was
mainly due to an increase of 8 per cent in ore processed, from 1.49
million tonnes in the June quarter to 1.61 million tonnes in the
September quarter and an increase in metal recoveries, from 62 per
cent in the June quarter to 67 per cent in the September quarter for
gold, and from 81 per cent to 85 per cent for copper; partially offset
by a reduction in copper head grade, from 0.91 per cent in the June
quarter to 0.78 per cent in the September quarter. Gold head grade
increased from 1.18 grams per tonne to 1.38 grams per tonne. The
increase in ore tonnes processed reflects a record throughput of
807 tonnes per hour for the September quarter.
Gold yield for the September quarter was 0.9 grams per tonne,
compared with 0.7 grams per tonne in the June quarter and copper
yield was 0.66 per cent compared with 0.74 per cent in the June
quarter.
Operating costs, including gold-in-process movements, increased
from US$32 million (R242 million) in the June quarter to US$39
million (R290 million) in the September quarter. This was mainly due
to an increase in the accrual for statutory workers legal participation
in line with the higher profit and a gold-in-process charge to cost
compared with a credit to cost in the June quarter. Total cash cost
was US$354 per equivalent ounce sold for the September quarter
compared with US$369 per equivalent ounce sold in the June
quarter, mainly reflecting the effect of higher equivalent ounces sold,
which offset the impact of the increase in operating costs.
Operating profit increased from US$67 million (R505 million) in the
June quarter to US$103 million (R758 million) in the September
quarter, reflecting the higher metal production and sales, together
with tight cost controls.
Capital expenditure for the September quarter was US$11 million
(R82 million), compared with US$14 million (R108 million) in the
June quarter. The lower expenditure during the September quarter
was due to the timing of expenditure.
Notional cash expenditure for the September quarter at US$456 per
equivalent ounce compares with US$502 per equivalent ounce in
the June quarter, the decrease being a result of the higher
equivalent ounces produced and the lower capital expenditure.
Australasia region
Australia
St Ives
September
2010
June
2010
Gold produced
- 000’oz
117.9
117.5
Yield - heap leach
- g/t
0.5
0.5
- milling
- g/t
2.8
2.7
- combined
- g/t
2.2
2.1
Total cash cost
- A$/oz
744
780
-
US$/oz
666
692
Notional cash expenditure
- A$/oz
1,061
1,106
-
US$/oz
950
981
NCE margin
- %
22
19
Gold produced increased from 117,500 ounces in the June quarter
to 117,900 ounces in the September quarter.
At the open pit operations total tonnes mined decreased from 8.71
million tonnes in the June quarter to 5.00 million tonnes in the
September quarter. Total ore tonnes mined decreased from 1.72
million tonnes of ore mined to 1.20 million tonnes due to the
utilisation of stockpiles. Grade increased from 1.38 grams per tonne
to 1.76 grams per tonne. The average strip ratio, including capital
waste, reduced from 4.3 in the June quarter to 3.3 in the September
quarter.
At the underground operations, ore mined increased from 387,600
tonnes at 5.1 grams per tonne in the June quarter to 418,600 tonnes
at 5.2 grams per tonne in the September quarter. The increased ore
tonnes were predominantly due to a build-up in production at the
Naiad operation (an extention of Belleisle).
Gold produced from the Lefroy mill increased from 109,700 ounces
to 110,400 ounces, due to an increase in head grade from 2.97
grams per tonne in the June quarter to 3.10 grams per tonne in the
September quarter. Production from the heap leach facility at 7,500
ounces was 4 per cent lower than the June quarter, due to
maintenance of the secondary crusher.
Operating costs, including gold-in-process movements, decreased
from A$89 million (R597 million) in the June quarter to A$84 million
(R552 million) in the September quarter. The decrease in costs was
primarily due to a gold-in-process credit associated with higher gold
inventory at the end of the quarter. Total cash cost decreased from
A$780 per ounce (US$692 per ounce) to A$744 per ounce (US$666
per ounce) as a result of the lower cost.
Operating profit increased from A$70 million (R470 million) to A$77
million (R504 million), due to the lower costs.
Capital expenditure decreased from A$35 million (R232 million) to
A$31 million (R203 million). Capital expenditure at Athena
9 I GOLD FIELDS RESULTS
decreased from A$13 million in the June quarter to A$10 million in
the September quarter due to a decrease in capital development in
line with the planned build-up. This project is expected to have first
stope ore produced in December 2010, on schedule, with full
production at this new mine in the third quarter of calendar 2011.
Notional cash expenditure decreased from A$1,106 per ounce
(US$981 per ounce) in the June quarter to A$1,061 per ounce
(US$950 per ounce) in the September quarter, mainly due to lower
capital expenditure.
Agnew
September
2010
June
2010
Gold produced
- 000’oz
35.3
31.7
Yield - g/t
5.3
5.4
Total cash cost
- A$/oz
706
838
-
US$/oz
632
743
Notional cash expenditure
- A$/oz
1,065
1,632
-
US$/oz
954
1,447
NCE margin
- %
22
(22)
Gold production increased from 31,700 ounces in the June quarter
to 35,300 ounces in the September quarter. This increase was due
to the implementation of the revised mine plan at Kim which has
alleviated previous access restrictions and increased stope
availability towards the latter half of the quarter. Stope availability
improved as rehabilitation of areas characterised by poor ground
conditions was systematically completed following stope failures
towards the end of the previous quarter.
Ore mined from underground increased from 134,000 tonnes at a
head grade of 6.6 grams per tonne in the June quarter to 145,000
tonnes at a head grade of 8.8 grams per tonne in the September
quarter. The grade increase was due to renewed access to the high
grade southern areas of the Kim South ore body. Tonnes
processed increased from 184,000 tonnes in the June quarter to
209,000 tonnes in the September quarter, with a marginal decrease
in yield from 5.4 grams per tonne to 5.3 grams per tonne. Due to
underground ore not being sufficient to fill the total mill capacity, the
resultant spare processing capacity was used to treat 64,000 tonnes
of lower grade material from surface stockpiles.
Operating costs, including gold-in-process movements, decreased
from A$27 million (R182 million) in the June quarter to A$25 million
(R164 million) in the September quarter, which included A$2 million
credit to costs attributable to a build-up of gold inventory. Total cash
cost per ounce decreased from A$838 per ounce (US$743 per
ounce) to A$706 per ounce (US$632 per ounce) due to the
increased production.
Operating profit increased from A$15 million (R101 million) in the
June quarter to A$23 million (R153 million) in the September
quarter. This was mainly due to the increased production.
Capital expenditure decreased from A$26 million (R176 million) in
the June quarter to A$11 million (R73 million) in the September
quarter. The acquisition of mining fleet to commence owner mining
accounted for A$13 million of the capital expenditure for the June
quarter.
Notional cash expenditure decreased from A$1,632 per ounce
(US$1,447 per ounce) in the June quarter to A$1,065 per ounce
(US$954 per ounce) in the September quarter due to the decrease
in capital expenditure and increased production.
Quarter ended 30 September 2010 compared
with quarter ended 30 September 2009
Group attributable gold production increased marginally from
906,000 ounces for the quarter ended September 2009 to 908,000
ounces for the quarter ended September 2010.
At the South African operations gold production decreased from
527,000 ounces to 497,000 ounces. Driefontein’s gold production
increased by 2 per cent from 189,500 ounces to 193,500 ounces
due to an increase in volumes mined. At Kloof, gold production
decreased by 20 per cent from 161,500 ounces to 129,900 ounces
mainly due to lower volumes and a lower Mine Call Factor. At
Beatrix, gold production decreased by 7 per cent from 110,500
ounces to 102,900 ounces due to lower mining volumes. South
Deep’s gold production increased by 8 per cent from 65,300 ounces
to 70,700 ounces in line with the build-up to plan.
At the West African operations total managed gold production
increased from 226,500 ounces for the quarter ended September
2009 to 242,000 ounces for the quarter ended September 2010. At
Damang, gold production increased by 10 per cent from 51,400
ounces to 56,500 ounces mainly due to the re-build of the primary
crusher in September 2009. Tarkwa’s production increased by 6
per cent from 175,100 ounces to 185,500 ounces mainly due to an
increase in CIL throughput.
In South America, gold equivalent production at Cerro Corona
increased from 88,500 ounces in the September 2009 quarter to
105,800 ounces in the September 2010 quarter due to increased
concentrate production and higher copper prices relative to gold
prices received in the September 2010 quarter.
At the Australasian operations, gold production increased by 5 per
cent from 146,200 ounces in the September 2009 quarter to
153,200 ounces in the September 2010 quarter. St Ives increased
by 18 per cent from 100,300 ounces to 117,900 ounces mainly due
to increased tonnes processed at a higher head grade. Production
at Agnew decreased by 23 per cent from 45,900 ounces to 35,300
ounces, mainly due to the limited stope availability at Kim South.
Revenue increased by 22 per cent from R7,416 million (US$948
million) to R9,053 million (US$1,230 million). The 20 per cent higher
average gold price at R289,329 per kilogram (US$1,223 per ounce)
compares with R241,164 per kilogram (US$959 per ounce)
achieved for the quarter ended September 2009. The Rand
strengthened from US$1 = R7.82 to US$1 = R7.36 or 6 per cent,
while the Rand/Australian dollar weakened by 2 per cent from A$1 =
R6.49 to R6.59.
Operating costs, including gold-in-process movements, increased
from R4,629 million (US$592 million) to R5,132 million (US$697
million). The increase in costs was mainly due to annual wage
increases at all the operations, an increase in electricity costs at the
South African and Ghanaian operations due to tariff increases and
the increase in processing the South heap leach at Tarkwa. At
Cerro Corona, the increase in costs was due to the production build-
up and increased statutory workers participation in profit because of
the increase in earnings. Total cash cost for the Group increased
from R147,343 per kilogram (US$586 per ounce) to R164,898 per
kilogram (US$697 per ounce) due to the increase in costs and the
introduction of royalties in South Africa together with an increase in
the royalty charge in Ghana from 3 to 5 per cent of revenue.
At the South African operations operating costs increased by 12 per
cent from R2,768 million (US$354 million) for the September 2009
quarter to R3,075 million (US$418 million) for the September 2010
quarter. This was due to above inflation annual wage increases, a
25 per cent increase in electricity costs and normal inflationary
increases in stores and contractors, partially offset by the cost
saving initiatives implemented during the year. Total cash cost at
the South African operations increased from R162,553 per kilogram
GOLD FIELDS RESULTS I 10
to R195,627 per kilogram as a result of the increase in costs, the
introduction of the royalty and the 6 per cent lower production.
At the West African operations, operating costs including gold-in-
process movements increased from US$115 million to US$143
million. This was mainly due to the increase in production and the
increase in power costs. At the South American operation,
operating costs at Cerro Corona increased from US$31 million in the
September 2009 quarter to US$39 million in the September 2010
quarter in line with increased production and increased statutory
workers participation.
At the Australasian operations operating costs including gold-in-
process movements were similar at A$109 million.
Operating profit increased from R2,787 million (US$356 million) to
R3,921 million (US$533 million).
The exceptional loss in the September 2010 quarter of R138 million
(US$19 million) compared with a gain of R667 million (US$85
million) in the September 2009 quarter. The loss in the September
2010 quarter was as a result of voluntary separation packages of
R118 million (US$16 million) and costs incurred of R20 million
(US$3 million) on business process re-engineering at the South
African, Ghanaian and Australian operations.. The gain in the
September 2009 quarter was mainly as a result of a R447 million
(US$57 million) profit on the sale of our stake in Sino Gold, a R282
million (US$37 million) profit on the sale of our Eldorado shares,
partially offset by a R57 million (US$7 million) impairment of sundry
offshore exploration investments.
After accounting for the sundry items and taxation, net earnings
amounted to R701 million (US$95 million), compared with R1,007
million (US$129 million) for the quarter ended September 2009.
Earnings excluding exceptional items, gains and losses on foreign
exchange, financial instruments and losses of associates after
taxation amounted to R1,016 million (US$138 million) for the quarter
ended September 2010 compared with R625 million (US$80 million)
for the quarter ended September 2009.
Post quarter-end developments
Business process re-engineering
Kloof and Driefontein
Earlier in the year, Business process re-engineering (BPR)
initiatives commenced at Driefontein, Kloof and Beatrix in South
Africa, Tarkwa in Ghana and St Ives in Australia. The BPR involves
a review of the mines’ underlying organisational structures as well
as the operational production processes from the stope to the mill.
The objective is to introduce a new business blueprint, together with
an appropriate organisational structure, which will support
sustainable gold output at a NCE margin of 20 per cent over the
next 12 to 18 months.
As a first step in the review of the operations in the South Africa
region we have implemented restructuring at Driefontein and Kloof,
whose senior management structures have been merged in an
effort to improve operational and financial efficiencies and ensure
long-term sustainability.
The details of the new Kloof/Driefontein complex restructuring
include:
· The Kloof and Driefontein executive offices and the regional
office will be combined into a new management team with the
primary role of servicing the new Kloof/Driefontein complex, but
which also has governance oversight across the South Africa
region. The team will be based at the combined mine complex
and the regional office at Constantia will be closed by early
December.
· Kloof and Driefontein shafts and plants have been clustered into
six operating units each with its own Senior Manager
responsible for safe production as well as ensuring an
appropriate cost and manpower base for each operating unit.
This will reduce the layers of management and increase the
span of control. The new operating units are:
o
Driefontein 1 and 5 shafts
o
Driefontein 2 and 4 shafts
o
Driefontein 6, 7, 8 and 10 shafts
o
Kloof 3 and 4 shafts
o
Kloof Main, 7, 8 and 10 shafts,
o
Reef and waste plants.
One of the key benefits of the new structure is that accountability,
responsibility and line of sight is devolved to a lower level.
· The operating units will be supported by site operations that
provide common services across the units.
· In addition, a strategic management office has been established
and will identify and implement cost reductions and revenue
enhancing opportunities. The aim is to reduce the rate of cost
increases and improve the NCE margin.
· Financial reporting of the new Kloof/Driefontein complex will
commence in the quarter ending December 2010.
The South Africa region will now consist of three operations, namely
the Kloof/Driefontein complex, Beatrix and South Deep. The
organisational design of Beatrix, because of its geographic location,
and South Deep, because of its mechanised mining method are
being reviewed in order to ensure that they are fit for purpose in the
new structure.
We have, over the last two years, conducted extensive preparatory
work in order to improve and sustain the South Africa region. The
introduction of NCE served as the starting point followed by an
overview of the region’s safety procedures and infrastructure, both
of which have resulted in safer and more sustainable operations.
The restructuring of Kloof and Driefontein is a natural progression to
ensuring the sustainability of the region and we are confident that
this structure is the most optimal. With quality ore bodies, existing
infrastructure and good people, the South Africa region has been
and will continue to be the bedrock of Gold Fields.
Tarkwa
Re-engineering is focused on cost reductions from improved
contractor management and improved consumable usage.
Initiatives include owner maintenance to complement the savings
and productivity improvements already achieved since the move to
owner mining.
St Ives
Re-engineering is focused on productivity improvements and cost
reductions across all areas. This programme will continue during
2011.
Exploration and corporate development
Exploration and corporate development
Exploration activity during the September quarter focused on four
advanced drilling and three initial drilling projects in Peru, Mali,
Canada, Finland, Kyrgyzstan, Australia and the Philippines, as well
as near mine exploration at St Ives, Agnew and Damang. Target
generation work continued on five other greenfields exploration
projects, where initial drilling is expected to commence in the
December quarter. In addition, Gold Fields signed option
agreements in September 2010 to acquire a total of 60 per cent
interest in the undeveloped gold-copper Far Southeast deposit in
the Philippines during the next 18 months.
Advanced drilling projects
At the Chucapaca project in Peru (Gold Fields 51 per cent), drilling
re-commenced in July 2010 with six drills currently on site. Two
11 I GOLD FIELDS RESULTS
more rigs are expected to be added in the December quarter to
accelerate completion of the drilling required for the pre-feasibility
study (“PFS”) which is to be completed during the September 2011
quarter. Other elements of the PFS, including metallurgical,
hydrogeology, geotechnical and waste rock characterisation studies,
are underway. This study is planned to be completed in parallel
with the resource delineation drilling.
At the Yanfolila project in southern Mali (Gold Fields 95 per cent),
drilling has been limited during the rainy season but is planned to
ramp up to five rigs in the December quarter. Assay results from the
previously completed resource definition drilling at Komana East
and West continue to show encouraging gold grades. Positive
assay results have also been returned from initial drilling at the
Gonka, Sanioumale and the Badogo-Malikila satellite targets
located to the south and southeast of Komana and follow-up drilling
programmes are planned for these areas. Preliminary metallurgical
tests on core samples of the transitional and sulphide mineralisation
from Komana East indicate that direct cyanidation can achieve
acceptable recoveries with low cyanide consumption. Samples of
the oxide mineralisation have yet to be tested, however, recovery
issues are not expected.
At the Talas project in Kyrgyzstan (Gold Fields 60 per cent), the
mineral resource estimate was finalised. Field activities have been
suspended until uncertainty surrounding the election of a new
parliament is resolved.
At the Arctic Platinum project in Finland (Gold Fields 100 per cent),
bench-scale flotation and hydrometallurgical testing is ongoing. A
drilling programme to obtain sufficient material for pilot plant-scale
tests is in the planning stage and will commence in the December
quarter. The pilot plant test work will take up to nine months to
complete after delivery of the samples. Potential flowsheet and
design updates will be made once the pilot plant testing has been
completed. Environmental baseline studies are in progress over the
Suhanko and Suhanko extension areas.
Initial drilling projects
At the East Lachlan joint ventures in New South Wales, Australia,
where Gold Fields has earned into an 80 per cent interest in two
porphyry Au-Cu project areas (Wellington North and Cowal East)
and is earning into 80 per cent on another two projects (including
the Myall joint venture) with Clancy Exploration Ltd (ASX: ”CLY”),
rains in August 2010 forced the suspension of fieldwork. Drilling will
continue in the December quarter. Encouraging assay results from
previous drilling at the Myall joint venture have returned additional
wide but relatively low grade copper intersections. Analysis of the
drilling results has identified a compelling Cu-Au target immediately
North West of these intercepts.
At the Batangas joint ventures in the Philippines, where Gold Fields
can earn up to a 75 per cent interest in three joint ventures with
Mindoro Resources Ltd. (TSX.V: “MIO”), two diamond holes tested
the Ulupong epithermal Au-Cu target with indifferent results; leading
to a downgrading of this target. Reconnaissance geological
mapping at the El Paso project has identified a new porphyry target
with malachite-azurite staining along fractures and chalcopyrite-
covellite-bornite disseminations.
Drilling resumed with two diamond drills in early July 2010 at the
Woodjam project in British Columbia, Canada, where Gold Fields
can earn up to a 70 per cent interest in two separate joint ventures
with the Woodjam Partners (Fjordland Exploration Inc. (TSX.V:
“FEX”) and Cariboo Rose Resources (TSX.V: “CRB”)). During the
quarter, drilling has focused on the Southeast, Takom, Deerhorn
and Corner Lake porphyry Cu-Au target areas. Step-out drilling is
currently in progress to find the limits of mineralisation on the
northwest side of the Southeast Zone and the south side of the
Deerhorn target. Drilling is also planned to test geophysical targets
to the east of the Megabucks zone.
Near mine exploration
St Ives
Assay results from the initial Athena underground infill drilling
returned positive results during July 2010. The first level of
development was completed during August 2010 with positive
reconciliation to the model. This, coupled with the recent drilling
results, provides confidence for the near term development of this
new mine. Infill drilling at Hamlet to upgrade the Inferred Resource
to Indicated status was completed during October 2010. Results
from the deep drilling at Yorrick are demonstrating additional high
grade shoots about 100 metres deeper than previously defined.
Agnew
Directional drilling of Main Lode North was completed on the
9750mRL level. Assay results indicate variable but generally
moderate grades and wide widths of mineralisation, which suggest
that Main Lode North may be amenable to a bulk mining method
(e.g. sub-level caving) or a combination of bulk and selective mining
methods. A study is planned to evaluate the optimum mining
method to extract this resource.
Damang
Drilling of the Damang Deeps phase 1 extensional target completed
two holes, with both intersecting the full suite of favourable
lithologies. Typical Damang-style hydrothermal mineralisation was
intersected in the dolerite units. Assays for this drilling are still
pending. Infill drilling continued at Juno, Rex and Greater Amoanda
with positive results being returned from Juno during September
2010. At the Amoanda North extension, scout drilling intersected
the north plunging extension of the ore body adding a further 120
metre of strike to the north of the modeled resource. Initial assays
received are positive.
Cerro Corona
There has been no activity on the Consolidada de Hualgayoc joint
venture (50 per cent Gold Fields) since exploration was suspended
in 2009 due to community issues. A follow-up drilling programme is
being designed for the newly acquired Sylvita Concession to the
immediate north of the Cerro Corona pit.
Corporate
Moody’s assigns investment grade credit rating
Moody’s Investor Services (“Moody’s”) assigned Gold Fields a first-
time ‘Baa3’ senior unsecured issuer rating on 17 September 2010.
This investment grade rating comes with a stable outlook.
Moody’s said that the rating reflected Gold Fields’ position as the
world’s fourth-largest gold producer as well as the Group’s very
sizeable reserve base and industry-leading reserve life in excess of
20 years. The stable outlook was based on the expectation that
Gold Fields would maintain healthy operating margins and a
conservative financial profile.
In addition, Standard & Poor’s Rating Services (S&P) has
maintained an investment grade rating on Gold Fields of ‘BBB-’ with
a stable outlook, since March 2009.
Option agreement in Philippines
On 20 September 2010 Gold Fields announced that it has entered
into option agreements with Lepanto Consolidated Mining Company
(Lepanto), a company listed in the Philippines, and Liberty Express
Assets (Liberty), a private holding company, to acquire a 60 per cent
interest in the undeveloped gold-copper Far Southeast (FSE)
deposit in the Philippines.
GOLD FIELDS RESULTS I 12
The agreements provide Gold Fields with an 18 month option on
FSE, during which time a major drilling programme will be
conducted as part of a feasibility study on FSE. Gold Fields was
required to pay US$10 million in option fees to Lepanto and US$44
million as a non-refundable down-payment to Liberty upon signing
of the option agreements, which payments have been made since
the closure of this reporting period. Should Gold Fields, after a 12-
month period, decide to proceed with the option, a further non-
refundable down-payment of US$66 million will be payable to
Liberty, with the final payment of US$220 million payable on 20
March 2012 should Gold Fields exercise the option. The total pre-
agreed acquisition price for a 60 per cent interest in FSE is US$340
million inclusive of all of the above down-payments and the option
fee.
Debut US$1 billion bond closure
A 10-year US$1 billion bond offer to international investors was
successfully completed on 7 October 2010. This transaction was
executed on 30 September 2010, where the final order book was
more than two times oversubscribed from high quality accounts.
The final coupon of 4.875 per cent per annum is the lowest US$ rate
achieved by a South African corporate in the international US dollar
bond market.
Paul Schmidt, Chief Financial Officer, said: “The 10 year tenor of
this bond will fit nicely with our long term quality assets without
increasing the Group’s debt position. We will have more than
US$1.3 billion of committed bank facilities available after the net
proceeds of the bond have been used to refinance some bank
facilities and commercial paper notes in issue. The bond
significantly strengthens our liquidity and debt maturity profile”.
New housing complex
On 1 October 2010 a new employee housing project was opened in
the Glenharvie community near Kloof as part of Gold Fields’ R550
million, five year housing programme of which R280 million has
been spent to date. The new Grootkloof complex, representing an
investment of R25 million, will offer housing accommodation to an
additional 100 Kloof employees and their families.
The complex is an integral part of our continuing programme to
renovate housing, construct new family homes and upgrade and de-
densify our high-density accommodation. Significant progress has
been made in this regard. At present, room density in the hostels is
just over two per room, from eight per room in 2006. Around 21,000
employees are accommodated by Gold Fields in high-density
accommodation. The Employee Housing programme is part of Gold
Fields’ total wellbeing programme called “24 Hours in the Life of a
Gold Fields Employee”. This programme is designed to improve
every facet of the health and well-being of employees, and
addresses the key issues of safe production, healthcare, nutrition,
accommodation, sport and recreation as well as education and
training.
South Deep new order mining right executed
On 5 August 2010 Gold Fields announced that the Department of
Mineral Resources (DMR) of South Africa had executed the new
order mining right for South Deep.
BEE transaction approved
The terms of three empowerment transactions have been finalised
and will enable us to achieve our 2014 Black Economic
Empowerment (BEE) ownership targets. These deals include an
Employee Share Option plan for 10.75 per cent of GFIMSA, a
broad-based BEE transaction for 10 per cent of South Deep and a
broad-based BEE transaction for 1 per cent of GFIMSA, excluding
South Deep. The BEE circular has been posted to shareholders
and is also available on the company’s website.
Changes in leadership
After more than 25 years of outstanding service to Gold Fields,
Vishnu Pillay, Executive Vice President and Head of the South
Africa region, announced his retirement from Gold Fields at the
beginning of October. He will leave the company by the end of
December 2010. Vishnu has been a key architect of the significant
improvement in safety in South Africa over the past few years, as
well as the restructuring of the region.
Tim Roland, Vice President Technical - South Africa, is currently
acting as Executive Vice President and Head of the South Africa
region.
Outlook
The guidance for the year ended 30 June 2011, is maintained with
attributable equivalent gold production estimated at between 3.5
million ounces and 3.8 million ounces. Total cash cost is estimated
at between US$650 per ounce (R157,000 per kilogram) and
US$690 per ounce (R166,000 per kilogram). Notional cash
expenditure (NCE) per ounce/kilogram, defined as operating costs
plus capital expenditure divided by gold production, is estimated at
between US$925 per ounce (R223,000 per kilogram) and US$975
per ounce (R235,000 per kilogram). This estimate is based on an
exchange rate of R/US$7.50 and US$/A$0.88. The above is subject
to the forward looking statement on page 1 and 27. The estimated
financial information has not been reviewed and reported on by the
Gold Fields’ auditors in accordance with Section 8.40 (a) of the
Listing Requirements of the JSE Limited.
Change in year-end
Gold Fields is in the process of changing its financial year-end from
June to December to align the Group reporting with peers in the
gold mining industry. This will result in a six month reporting period
ending 31 December 2010, followed by the new financial year
ending 31 December 2011.
Basis of accounting
The condensed consolidated preliminary financial information is
prepared in accordance with IAS 34 Interim Financial Reporting.
The accounting policies and disclosure requirements 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
4 November 2010
13 I GOLD FIELDS RESULTS
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
SOUTH AFRICAN RAND
September
2010
June
2010
September
2009
Revenue
9,052.8
8,802.7 7,415.8
Operating costs, net
(5,132.0)
(5,064.7) (4,628.6)
-
Operating
costs
(5,173.4)
(5,102.5) (4,644.1)
- Gold inventory change
41.4
37.8 15.5
Operating profit
3,920.8
3,738.0 2,787.2
Amortisation and depreciation
(1,442.5)
(1,368.2) (1,173.8)
Net operating profit
2,478.3
2,369.8 1,613.4
Net interest paid
(69.6)
(33.4) (49.2)
Share of (loss)/gain of associates after taxation
(217.6)
86.2
(15.8)
(Loss)/gain on foreign exchange
(11.1)
6.0
(62.7)
(Loss)/gain on financial instruments
(2.6)
19.1 (131.8)
Share-based payments
(119.0)
(46.1) (120.1)
Other
(23.7)
(119.9) (5.4)
Exploration
(123.5)
(185.5) (132.8)
Profit before taxation and exceptional items
1,911.2
2,096.2 1,095.6
Exceptional (loss)/gain
(138.3)
(144.1) 666.8
Profit before taxation
1,772.9
1,952.1 1,762.4
Mining and income taxation
(849.0)
(864.5) (638.1)
-
Normal
taxation
(459.2)
(339.6) (332.5)
-
Royalties
(217.5)
(220.8) (97.5)
-
Deferred
taxation
(172.3)
(304.1)
(208.1)
Net profit
923.9
1,087.6
1,124.3
Attributable to:
- Owners of the parent
700.9
899.9 1,007.2
- Non-controlling interest
223.0
187.7 117.1
Exceptional items:
Profit on sale of investments
1.0
63.8 728.7
Profit on sale of assets
2.7
0.5 1.0
Restructuring costs
(142.0)
(11.8)
(5.8)
Impairment of investments
-
(196.6)
(57.1)
Total exceptional items
(138.3)
(144.1)
666.8
Taxation
50.0
(7.0)
(114.6)
Net exceptional items after taxation and non-controlling interest
(88.3)
(151.1)
552.2
Net earnings
700.9
899.9 1,007.2
Net earnings per share (cents)
99
128
143
Diluted earnings per share (cents)
98
125
141
Headline earnings
698.5
1,039.1
451.6
Headline earnings per share (cents)
99
147 64
Net earnings excluding gains and losses on foreign exchange, financial instruments, exceptional
items and share of gain/(loss) of associates after taxation
1,016.3
945.4
624.8
Net earnings per share excluding gains and losses on foreign exchange, financial instruments,
exceptional items and share of gain/(loss) of associates after taxation (cents)
144
134 89
Gold sold – managed
kg
31,289
30,623
30,750
Gold price received
R/kg
289,329
287,454
241,164
Total cash cost
R/kg
164,898
166,215 147,343
Statement of comprehensive income
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
SOUTH AFRICAN RAND
September
2010
June
2010
September
2009
Net profit for the quarter
923.9
1,087.6 1,124.3
Other comprehensive (expenses)/income, net of tax
(620.0)
170.4 (953.2)
Marked to market valuation of listed investments
41.8
19.4 (197.3)
Currency translation adjustments and other
(671.4)
155.8 (846.2)
Share of equity investee’s other comprehensive income
7.0
(2.4)
11.7
Deferred taxation on marked to market valuation of listed investments
2.6
(2.4)
78.6
Total comprehensive income for the quarter
303.9
1,258.0 171.1
Attributable to:
- Owners of the parent
82.5
1,066.1 78.7
- Non-controlling interest
221.4
191.9
92.4
303.9
1,258.0 171.1
GOLD FIELDS RESULTS I 14
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
UNITED STATES DOLLARS
September
2010
June
2010
September
2009
Revenue
1,230.0
1,169.2 948.3
Operating costs, net
(697.3)
(673.1) (591.9)
-
Operating
costs
(702.9)
(678.1) (593.9)
- Gold inventory change
5.6
5.0 2.0
Operating profit
532.7
496.1 356.4
Amortisation and depreciation
(196.0)
(181.7) (150.1)
Net operating profit
336.7
314.4 206.3
Net interest paid
(9.5)
(4.4) (6.3)
Share of (loss)/gain of associates after taxation
(29.6)
11.4 (2.0)
(Loss)/gain on foreign exchange
(1.5)
0.8 (8.0)
(Loss)/gain on financial instruments
(0.4)
2.4 (16.9)
Share-based payments
(16.2)
(6.3) (15.4)
Other
(3.1)
(15.9) (0.7)
Exploration
(16.7)
(24.7) (17.0)
Profit before taxation and exceptional items
259.7
277.7 140.0
Exceptional (loss)/gain
(18.8)
(18.6) 85.3
Profit before taxation
240.9
259.1 225.3
Mining and income taxation
(115.4)
(114.7) (81.6)
-
Normal
taxation
(62.4)
(45.1) (42.5)
-
Royalties
(29.6)
(29.2) (12.5)
-
Deferred
taxation
(23.4)
(40.4) (26.6)
Net profit
125.5
144.4 143.7
Attributable to:
- Owners of the parents
95.2
119.5 128.7
- Non-controlling interest
30.3
24.9 15.0
Exceptional items:
Profit on sale of investments
0.1
8.8 93.2
Profit on sale of assets
0.4
- 0.1
Restructuring costs
(19.3)
(1.6) (0.7)
Gain on financial instrument
-
0.1 -
Impairment of investments
-
(25.9) (7.3)
Total exceptional items
(18.8)
(18.6) 85.3
Taxation
6.8
(1.0) (14.7)
Net exceptional items after taxation and non-controlling interest
(12.0)
(19.6) 70.6
Net earnings
95.2
119.5 128.7
Net earnings per share (cents)
13
17 18
Diluted earnings per share (cents)
13
17 18
Headline earnings
94.8
137.8 57.7
Headline earnings per share (cents)
13
20 8
Net earnings excluding gains and losses on foreign exchange, financial instruments, exceptional
items and share of gain/(loss) of associates after taxation
138.1
125.4 79.9
Net earnings per share excluding gains and losses on foreign exchange, financial instruments,
exceptional items and share of gain/(loss) of associates after taxation (cents)
20
18 11
South African rand/United States dollar conversion rate
7.36
7.51 7.82
South African rand/Australian dollar conversion rate
6.59
6.66 6.49
Gold sold – managed
oz (000)
1,006
985 989
Gold price received
US$/oz
1,223
1,191 959
Total cash cost
US$/oz
697
688 586
Statement of comprehensive income
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
UNITED STATES DOLLARS
September
2010
June
2010
September
2009
Net profit for the quarter
125.5
144.4 143.7
Other comprehensive income/(expenses), net of tax
376.8
(154.0) 372.8
Marked to market valuation of listed investments
5.7
2.5 (25.3)
Currency translation adjustments and other
369.7
(155.9) 386.5
Share of equity investee’s other comprehensive income
1.0
(0.3) 1.5
Deferred taxation on marked to market valuation of listed investments
0.4
(0.3) 10.1
Total comprehensive income/(loss) for the quarter
502.3
(9.6) 516.5
Attributable to:
- Owners of the parent
442.4
(23.5) 474.8
- Non-controlling interest
59.9
13.9 41.7
502.3
(9.6) 516.5
15 I GOLD FIELDS RESULTS
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
2010
June
2010
September
2010
June
2010
Net earnings
700.9
899.9
95.2
119.5
Profit on sale of investments
(1.0)
(63.8)
(0.1)
(8.8)
Taxation effect on sale of investments
0.3
6.9
-
1.2
Profit on sale of assets
(2.7)
(0.5)
(0.4)
-
Taxation effect on sale of assets
1.0
-
0.1
-
Impairment of investments
-
196.6
-
25.9
Headline earnings
698.5
1,039.1
94.8
137.8
Headline earnings per share – cents
99
147
13
20
Based on headline earnings as given above divided by 706,090,891 (June 2010 –
705,826,038) being the weighted average number of ordinary shares in issue.
Statement of financial position
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
UNITED STATES DOLLARS
September
2010
June
2010
September
2010
June
2010
Property, plant and equipment
52,741.2
52,813.4
7,502.3
6,976.7
Goodwill
4,458.9
4,458.9
634.3
589.0
Non-current assets
1,028.9
1,012.5
146.4
133.8
Investments
885.4
1,035.9
125.9
136.8
Current assets
10,073.6
9,019.5
1,432.9
1,191.5
- Other current assets
5,760.4
5,229.0
819.4
690.8
- Cash and deposits
4,313.2
3,790.5
613.5
500.7
Total assets
69,188.0
68,340.2
9,841.8
9,027.8
Shareholders’ equity
45,393.2
45,448.9
6,457.0
6,003.8
Deferred taxation
7,214.6
7,142.7
1,026.3
943.6
Long-term loans
4,639.8
3,255.1
660.0
430.0
Environmental rehabilitation provisions
2,305.5
2,295.5
328.0
303.2
Post-retirement health care provisions
22.1
22.1
3.1
2.9
Current liabilities
9,612.8
10,175.9
1,367.4
1,344.3
- Other current liabilities
4,863.3
4,943.9
691.8
653.2
- Current portion of long-term loans
4,749.5
5,232.0
675.6
691.1
Total equity and liabilities
69,188.0
68,340.2
9,841.8
9,027.8
South African rand/US dollar conversion rate
7.03
7.57
South African rand/Australian dollar conversion rate
6.71
6.57
Net debt
5,076.1
4,696.6
722.1
620.4
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.
South Africa forward cover contracts*
South African rand forward cover contracts were taken out to cover commitments of the South African operations in various currencies.
Outstanding at the end of September 2010 were the following contracts:
· US$/ZAR – US$3 million in total, with a negative marked to market value of US$0.2 million
· A$/ZAR – A$4 million in total, with a negative marked to market value of US$0.1 million
* Do not qualify for hedge accounting and will be accounted for as derivative financial instruments in the income statement.
GOLD FIELDS RESULTS I 16
Condensed statement of changes in equity
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
SEPTEMBER 2010 QUARTER
Share capital
and premium
Other
reserves
Retained
earnings
Non-
controlling
interest
Total
equity
Balance as at 30 June 2010
31,522.4
(1,470.0)
12,590.5
2,806.0
45,448.9
Total comprehensive (expenses)/income
-
(618.4)
700.9
221.4
303.9
Profit for the quarter
-
-
700.9
223.0
923.9
Other comprehensive expenses
-
(618.4)
-
(1.6)
(620.0)
Dividends paid
-
-
(494.4)
-
(494.4)
Share-based payments
-
119.0
-
-
119.0
Exercise of employee share options
15.8
-
-
-
15.8
Balance as at 30 September 2010
31,538.2
(1,969.4)
12,797.0
3,027.4
45,393.2
UNITED STATES DOLLARS
SEPTEMBER 2010 QUARTER
Share capital
and premium
Other
reserves
Retained
earnings
Non-
controlling
interest
Total
equity
Balance as at 30 June 2010
4,597.3
(682.9)
1,718.7
370.7
6,003.8
Total
comprehensive
income
-
347.2 95.2 59.9
502.3
Profit for the quarter
-
-
95.2
30.3
125.5
Other comprehensive income
-
347.2
-
29.6
376.8
Dividends paid
-
-
(67.4)
-
(67.4)
Share-based
payments
-
16.2 - -
16.2
Exercise of employee share options
2.1
-
-
-
2.1
Balance as at 30 September 2010
4,599.4
(319.5)
1,746.5
430.6
6,457.0
SOUTH AFRICAN RAND
SEPTEMBER 2009 QUARTER
Share capital
and premium
Other
reserves
Retained
earnings
Non-
controlling
interest
Total
equity
Balance as at 30 June 2009
31,465.6
(1,135.7)
9,876.2
2,463.3
42,669.4
Total comprehensive (expenses)/income
-
(928.5)
1,007.2
92.4
171.1
Profit for the quarter
-
-
1,007.2
117.1
1,124.3
Other comprehensive expenses
-
(928.5)
-
(24.7)
(953.2)
Dividends paid
-
-
(564.1)
-
(564.1)
Share-based payments
-
120.1
-
-
120.1
Transactions with minority interest
-
-
-
56.3
56.3
Exercise of employee share options
13.2
-
-
-
13.2
Balance as at 30 September 2009
31,478.8
(1,944.1)
10,319.3
2,612.0
42,466.0
UNITED STATES DOLLARS
SEPTEMBER 2009 QUARTER
Share capital
and premium
Other
reserves
Retained
earnings
Non-
controlling
interest
Total
equity
Balance as at 30 June 2009
4,589.9
(959.2)
1,357.7
305.6
5,294.0
Total comprehensive income
-
346.1
128.7
41.7
516.5
Profit for the quarter
-
-
128.7
15.0
143.7
Other comprehensive income
-
346.1
-
26.7
372.8
Dividends paid
-
-
(72.6)
-
(72.6)
Share-based payments
-
15.4
-
-
15.4
Transactions with minority interest
-
-
-
7.1
7.1
Exercise of employee share options
1.7
-
-
-
1.7
Balance as at 30 September 2009
4,591.6
(597.7)
1,413.8
354.4
5,762.1
17 I GOLD FIELDS RESULTS
Statement of cash flows
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
SOUTH AFRICAN RAND
September
2010
June
2010
September
2009
Cash flows from operating activities
2,250.7
3,649.7 1,263.0
Profit before tax and exceptional items
1,911.2
2,096.2 1,095.6
Exceptional items
(138.3)
(144.1) 666.8
Amortisation and depreciation
1,442.5
1,368.2 1,173.8
Change in working capital
(753.2)
767.0 (506.6)
Taxation paid
(623.3)
(545.5) (704.6)
Other non-cash items
411.8
107.9 (462.0)
Dividends paid
(494.4)
(175.2) (564.1)
Ordinary shareholders
(494.4)
- (564.1)
Non-controlling interest holders
-
(175.2)
-
Cash flows from investing activities
(2,228.0)
(1,890.2) (1,781.9)
Capital expenditure – additions
(2,225.4)
(2,156.9) (1,746.3)
Capital expenditure – proceeds on disposal
28.7
2.4 3.0
Purchase of subsidiaries
-
- (301.1)
Royalty termination
-
- (1,998.9)
Purchase of investments
(22.5)
(3.6) 3.8
Proceeds on the disposal of investments
1.0
339.8 2,266.3
Environmental and post-retirement health care payments
(9.8)
(71.9) (8.7)
Cash flows from financing activities
1,188.8
(665.9) 644.0
Loans received
4,013.1
2,444.1 3,369.4
Loans repaid
(2,840.1)
(3,001.0) (2,738.6)
Non-controlling interest holders loans repaid
-
(116.4) -
Shares issued
15.8
7.4 13.2
Net cash inflow/(outflow)
717.1
918.4 (439.0)
Translation adjustment
(194.4)
47.2 (87.1)
Cash at beginning of period
3,790.5
2,824.9 2,803.9
Cash at end of period
4,313.2
3,790.5 2,277.8
*Cash flow before financing activities and dividend payments
22.7
1,759.5
(518.9)
Quarter
UNITED STATES DOLLARS
September
2010
June
2010
September
2009
Cash flows from operating activities
308.0
482.1 165.3
Profit before tax and exceptional items
259.7
277.7 140.0
Exceptional items
(18.8)
(18.6) 85.3
Amortisation and depreciation
196.0
181.7 150.1
Change in working capital
(102.3)
100.9 (64.8)
Taxation paid
(82.6)
(73.6) (86.2)
Other non-cash items
56.0
14.0 (59.1)
Dividends paid
(67.4)
(23.1) (72.6)
Ordinary shareholders
(67.4)
- (72.6)
Non-controlling interest holders
-
(23.1) -
Cash flows from investing activities
(302.8)
(239.7) (219.0)
Capital expenditure – additions
(302.4)
(286.5) (223.3)
Capital expenditure – proceeds on disposal
3.9
0.3 0.4
Purchase of subsidiaries
-
- (37.7)
Royalty termination
-
- (257.1)
Purchase of investments
(3.1)
(0.4) 0.5
Proceeds on the disposal of investments
0.1
56.4 299.4
Environmental and post-retirement health care payments
(1.3)
(9.5) (1.2)
Cash flows from financing activities
169.4
(88.0) 68.2
Loans received
557.4
322.9 433.0
Loans repaid
(390.1)
(396.5) (366.5)
Non-controlling interest holders loans repaid
-
(15.4) -
Shares issued
2.1
1.0 1.7
Net cash inflow/(outflow)
107.2
131.3 (58.1)
Translation adjustment
5.6
(14.9) 19.3
Cash at beginning of period
500.7
384.3 347.9
Cash at end of period
613.5
500.7 309.1
*Cash flow before financing activities and dividend payments
5.2
242.4
(53.7)
*Cash flow before financing activities is defined as the sum of cash flows from operating activities and cash flows from investing activities.
GOLD FIELDS RESULTS I 18
Debt maturity ladder
Figures are in millions unless otherwise stated
31 Dec 2010
31 Dec 2011
31 Dec 2012
1 Jan 2013
to
31 Dec 2015
Total
Loan facilities
(including preference shares and commercial paper)
Rand million
5,415.7
739.8
1,500.0
1,500.0
9,155.5
US dollar million
10.0
540.0
40.0
560.0
1,150.0
Dollar debt translated to rand
70.3
3,796.2
281.2
3,936.8
8,084.5
Total (R’m)
5,486.0
4,536.0
1,781.2
5,436.8
17,240.0
Utilisation – Loan facilities
(including preference shares and commercial paper)
Rand million
2,993.5
1,474.8
-
-
4,468.3
US dollar million
10.0
540.0
40.0
110.0
700.0
Dollar debt translated to rand
70.3
3,796.2
281.2
773.3
4,921.0
Total (R’m)
3,063.8
5,271.0
281.2
773.3
9,389.3
Long-term loans per balance sheet (R’m)
4,639.8
Current portion of long-term loans per balance sheet (R’m)
4,749.5
Total loans per balance sheet (R’m)
9,389.3
Exchange rate: US$1 = R7.03 being the closing rate at the end of the September 2010 quarter.
Pro forma debt maturity ladder reflecting US$1 billion bond issue
On 7 October 2010, Orogen Holdings (BVI) Limited, a wholly owned subsidiary of Gold Fields, issued 10 year, US$1 billion of notes (the
“Notes”) due 7 October 2020 (the “Bond”). The Notes are unsecured and unsubordinated, and are fully and unconditionally guaranteed by
Gold Fields and certain of its subsidiaries. The Notes will attract interest at a fixed rate of 4.875 per cent per annum.
The Group intends to use the net proceeds of the Bond (net of issuance costs and issue discount) to repay certain existing bank facilities and
commercial paper notes in issue and for general corporate purposes. The Bond significantly strengthens the liquidity and debt maturity profile.
The table below presents the Group’s indebtedness as at 30 September 2010, adjusted to show the effect of the issue of the Bond and the
application of the net proceeds thereof as discussed above, as if the Bond and repayment of indebtedness had been completed as at 30
September 2010. The debt maturity table below has been prepared for illustrative purposes only and, because of its nature, the table discloses
a hypothetical situation and does not, therefore, represent the Group’s actual financial position or results.
Figures are in millions unless otherwise stated
31 Dec 2010
31 Dec 2011
31 Dec 2012
1 Jan 2013
to
31 Dec 2020
Total
Pro forma: Loan facilities
(including US$ bond, preference shares and commercial paper)
Rand million
2,123.7
739.8
1,500.0
1,500.0
5,863.5
US dollar million
10.0
540.0
40.0
1,547.0
2,137.0
Dollar debt translated to rand
70.3
3,796.2
281.2
10,875.4
15,023.1
Total (R’m)
2,194.0
4,536.0
1,781.2
12,375.4
20,886.6
Pro forma :Utilisation- Loan facilities
(including US$ bond, preference shares and commercial paper)
Rand million
304.9
739.8
-
-
1,044.7
US dollar million
10.0
40.0
40.0
1,097.0
1,187.0
Dollar debt translated to rand
70.3
281.2
281.2
7,711.9
8,344.6
Total (R’m)
375.2
1,021.0
281.2
7,711.9
9,389.3
Pro forma long-term loans per balance sheet (R’m)
8,063.4
Pro forma current portion of long-term loans per balance sheet (R’m)
1,325.9
Total loans per balance sheet (R’m)
9,389.3
Exchange rate: US$1 = R7.03 being the closing rate at the end of the September 2010 quarter.
19 I GOLD FIELDS RESULTS
Operating and financial results
SOUTH AFRICAN RAND
Total
Mine
Operations
South Africa Region
Total
Driefontein
Kloof
Beatrix
South Deep
Operating Results
Ore milled/treated (000 tonnes)
September 2010
14,510
4,059
1,521
1,106 937 495
June 2010
14,863
3,931
1,594
1,157 717 463
Yield (grams per tonne)
September 2010
2.1
3.8 4.0 3.7 3.4 4.4
June 2010
2.1
3.9 3.6 3.8 4.0 4.7
Gold produced (kilograms)
September 2010
31,042
15,458 6,017 4,041 3,202 2,198
June 2010
30,818
15,184 5,783 4,369 2,856 2,176
Gold sold (kilograms)
September 2010
31,289
15,458 6,017 4,041 3,202 2,198
June 2010
30,623
15,184 5,783 4,369 2,856 2,176
Gold price received (Rand per kilogram)
September 2010
289,329
287,929 288,150 287,800 287,633 287,989
June 2010
287,454
289,482 289,538 289,082 289,391 290,257
Total cash cost (Rand per kilogram)
September 2010
164,898
195,627 171,780 219,277 191,599 223,294
June 2010
166,215
187,770 175,584 196,201 189,216 201,333
Notional cash expenditure (Rand per kilogram)
September 2010
238,348
284,118 229,666 308,488 241,037 451,137
June 2010
235,223
272,669 233,910 274,319 260,049 388,925
Operating costs (Rand per tonne)
September 2010
357
758 682 823 669
1,008
June 2010
343
739 639 763 774 967
Financial Results (Rand million)
Revenue
September 2010
9,052.8
4,450.8
1,733.8
1,163.0 921.0 633.0
June 2010
8,802.7
4,395.5
1,674.4
1,263.0 826.5 631.6
Operating costs, net
September 2010
(5,132.0)
(3,075.1)
(1,038.0) (910.7) (627.2) (499.2)
June 2010
(5,064.7)
(2,904.5)
(1,018.8) (882.9) (555.2) (447.6)
- Operating costs
September 2010
(5,173.4)
(3,075.1)
(1,038.0) (910.7) (627.2) (499.2)
June 2010
(5,102.5)
(2,904.5)
(1,018.8) (882.9) (555.2) (447.6)
- Gold inventory change
September 2010
41.4
- - - - -
June 2010
37.8
- - - - -
Operating profit
September 2010
3,920.8
1,375.7 695.8 252.3 293.8 133.8
June 2010
3,738.0
1,491.0 655.6 380.1 271.3 184.0
Amortisation of mining assets
September 2010
(1,406.8)
(715.5) (220.3) (223.1) (141.3) (130.8)
June 2010
(1,328.4)
(660.8) (190.0) (209.5) (136.8) (124.5)
Net operating profit
September 2010
2,514.0
660.2 475.5 29.2 152.5
3.0
June 2010
2,409.6
830.2 465.6 170.6 134.5 59.5
Other expenses
September 2010
(244.1)
(136.2) (23.5) (41.6) (16.2) (54.9)
June 2010
(220.9)
(140.4) (28.5) (46.6) (9.7) (55.6)
Profit/(loss) before taxation
September 2010
2,269.9
524.0 452.0 (12.4) 136.3 (51.9)
June 2010
2,188.7
689.8 437.1 124.0 124.8
3.9
Mining and income taxation
September 2010
(802.6)
(152.8)
(127.6) 28.0
(72.2) 19.0
June 2010
(879.3)
(277.3)
(167.2) (54.2) (50.9) (5.0)
- Normal taxation
September 2010
(411.5)
(31.9) (44.0) 13.1 (1.0)
-
June 2010
(346.8)
(88.2) (83.9) (3.2) (1.1)
-
- Royalties
September 2010
(217.6)
(46.4)
(32.8) (5.8) (4.6) (3.2)
June 2010
(220.7)
(48.3)
(34.3) (6.8) (4.1) (3.1)
- Deferred taxation
September 2010
(173.5)
(74.5)
(50.8) 20.7
(66.6) 22.2
June 2010
(311.8)
(140.8) (49.0) (44.2) (45.7) (1.9)
Profit/(loss) before exceptional items
September 2010
1,467.3
371.2
324.4 15.6 64.1
(32.9)
June 2010
1,309.4
412.5
269.9 69.8 73.9 (1.1)
Exceptional items
September 2010
(121.3)
(111.2) (35.9) (51.8) (23.0) (0.5)
June 2010
(9.2)
(9.1) (0.9) (2.6) (2.5) (3.1)
Net profit/(loss)
September 2010
1,346.0
260.0 288.5 (36.2) 41.1 (33.4)
June 2010
1,300.2
403.4
269.0 67.2 71.4 (4.2)
Net profit/(loss) excluding gains and losses on
foreign exchange, financial instruments and
exceptional items
September 2010
1,427.6
329.0 310.8 (4.1) 55.4 (33.1)
June 2010
1,303.4
411.1
269.4 68.7 75.3 (2.3)
Capital expenditure
September 2010
(2,219.5)
(1,316.8)
(343.9) (335.9) (144.6)
(492.4)
June 2010
(2,146.6)
(1,235.7) (333.9) (315.6) (187.5) (398.7)
GOLD FIELDS RESULTS I 20
Operating and financial results
SOUTH AFRICAN RAND
West Africa Region
South
America
Region
Australasia Region
#
Ghana
Peru
Australia
Total
Tarkwa
Damang
Cerro
Corona
Total
St Ives
Agnew
Operating Results
Ore milled/treated (000 tonnes)
September 2010
6,987 5,750 1,237
1,607
1,857
1,648 209
June 2010
7,517 6,192 1,325
1,485
1,930
1,746 184
Yield (grams per tonne)
September 2010
1.1 1.0 1.4
2.0
2.6
2.2 5.3
June 2010
1.1 1.0 1.3
2.0
2.4
2.1 5.4
Gold produced (kilograms)
September 2010
7,527 5,769 1,758
3,291
4,766
3,668 1,098
June 2010
7,993 6,226 1,767
3,001
4,640
3,654 986
Gold sold (kilograms)
September 2010
7,527 5,769 1,758
3,538
4,766
3,668 1,098
June 2010
7,993 6,226 1,767
2,806
4,640
3,654 986
Gold price received (Rand per kilogram)
September 2010
289,783 289,461 290,842
296,269
287,998
287,759 288,798
June 2010
288,953 288,853 289,304
266,358
290,991
291,927 287,525
Total cash cost (Rand per kilogram)
September 2010
145,769 142,156 157,622
83,691
155,728
157,579 149,545
June 2010
150,307 144,748 169,892
89,202
169,655
167,022 179,412
Notional cash expenditure (Rand per kilogram)
September 2010
209,061 209,378 208,020
107,900
224,990
224,782 225,683
June 2010
192,068 186,219 212,677
121,326
260,690
236,754 349,391
Operating costs (Rand per tonne)
September 2010
147 132 217
170
429
377 836
June 2010
152 137 218
172
415
363 916
Financial Results (Rand million)
Revenue
September 2010
2,181.2 1,669.9 511.3
1,048.2
1,372.6
1,055.5 317.1
June 2010
2,309.6 1,798.4 511.2
747.4
1,350.2
1,066.7 283.5
Operating costs, net
September 2010
(1,051.2) (791.4) (259.8)
(289.9)
(715.8)
(551.6) (164.2)
June 2010
(1,139.5) (853.7) (285.8)
(242.0)
(778.7)
(596.5) (182.2)
- Operating costs
September 2010
(1,028.7) (759.8) (268.9)
(273.1)
(796.5)
(621.7) (174.8)
June 2010
(1,140.1) (850.9) (289.2)
(256.1)
(801.8)
(633.2) (168.6)
- Gold inventory change
September 2010
(22.5) (31.6)
9.1
(16.8)
80.7
70.1 10.6
June 2010
0.6 (2.8) 3.4
14.1
23.1
36.7 (13.6)
Operating profit
September 2010
1,130.0 878.5 251.5
758.3
656.8
503.9 152.9
June 2010
1,170.1 944.7 225.4
505.4
571.5
470.2 101.3
Amortisation of mining assets
September 2010
(254.4) (220.2) (34.2)
(110.2)
(326.7)
June 2010
(292.7) (252.0) (40.7)
(109.2)
(265.7)
Net operating profit
September 2010
875.6 658.3 217.3
648.1
330.1
June 2010
877.4 692.7 184.7
396.2
305.8
Other expenses
September 2010
(24.1) (18.2) (5.9)
(63.5)
(20.3)
June 2010
(34.9) (27.9) (7.0)
(36.4)
(9.2)
Profit before taxation
September 2010
851.5 640.1 211.4
584.6
309.8
June 2010
842.5 664.8 177.7
359.8
296.6
Mining and income taxation
September 2010
(327.8) (248.4) (79.4)
(206.5)
(115.5)
June 2010
(330.1) (258.7) (71.4)
(156.2)
(115.7)
- Normal taxation
September 2010
(213.1) (172.8) (40.3)
(166.5)
-
June 2010
(189.9) (132.9) (57.0)
(64.3)
(4.4)
- Royalties
September 2010
(109.1) (83.5) (25.6)
(28.4)
(33.7)
June 2010
(115.9) (90.1) (25.8)
(20.9)
(35.6)
- Deferred taxation
September 2010
(5.6) 7.9
(13.5) (11.6)
(81.8)
June 2010
(24.3) (35.7) 11.4
(71.0)
(75.7)
Profit before exceptional items
September 2010
523.7 391.7 132.0
378.1
194.3
June 2010
512.4 406.1 106.3
203.6
180.9
Exceptional items
September 2010
(1.5) (1.5)
-
-
(8.6)
June 2010
- - - (0.1)
-
Net profit
September 2010
522.2 390.2 132.0
378.1
185.7
June 2010
512.4 406.1 106.3
203.5
180.9
Net profit excluding gains and losses on
foreign exchange, financial instruments and
exceptional items
September 2010
525.2 393.2 132.0
378.1
195.3
June 2010
513.6 407.3 106.3
194.6
184.1
Capital expenditure
September 2010
(544.9) (448.1) (96.8)
(82.0)
(275.8)
(202.8) (73.0)
June 2010
(395.1) (308.5) (86.6)
(108.0)
(407.8)
(231.9) (175.9)
# 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.
21 I GOLD FIELDS RESULTS
Operating and financial results
UNITED STATES DOLLARS
Total
Mine
Operations
South Africa Region
Total
Driefontein
Kloof
Beatrix
South Deep
Operating Results
Ore milled/treated (000 tonnes)
September 2010
14,510
4,059 1,521 1,106 937 495
June 2010
14,863
3,931 1,594 1,157 717 463
Yield (ounces per tonne)
September 2010
0.069
0.122 0.127 0.117 0.110 0.143
June 2010
0.067
0.124 0.117 0.121 0.128 0.151
Gold produced (000 ounces)
September 2010
998.0
497.0 193.5 129.9 102.9 70.7
June 2010
990.8
488.2 185.9 140.5 91.8 70.0
Gold sold (000 ounces)
September 2010
1,006.0
497.0 193.5 129.9 102.9 70.7
June 2010
984.6
488.2 185.9 140.5 91.8 70.0
Gold price received (dollars per ounce)
September 2010
1,223
1,217 1,218 1,216 1,216 1,217
June 2010
1,191
1,199 1,199 1,197 1,199 1,202
Total cash cost (dollars per ounce)
September 2010
697
827 726 927 810 944
June 2010
688
778 727 813 784 834
Notional cash expenditure (dollars per ounce)
September 2010
1,006
1,201 971 1,304 1,019 1,907
June 2010
974
1,129 969 1,136 1,077 1,611
Operating costs (dollars per tonne)
September 2010
48
103 93
112 91
137
June 2010
46
98 85 102 103 129
Financial Results ($ million)
Revenue
September 2010
1,230.0
604.7 235.6 158.0 125.1 86.0
June 2010
1,169.2
583.9 222.3 167.8 109.9 83.9
Operating costs, net
September 2010
(697.3)
(417.8) (141.0) (123.7) (85.2) (67.8)
June 2010
(673.1)
(386.1) (135.4) (117.4) (73.8) (59.5)
- Operating costs
September 2010
(702.9)
(417.8) (141.0) (123.7) (85.2) (67.8)
June 2010
(678.1)
(386.1) (135.4) (117.4) (73.8) (59.5)
- Gold inventory change
September 2010
5.6
- - - - -
June 2010
5.0
- - - - -
Operating profit
September 2010
532.7
186.9 94.5 34.3 39.9 18.2
June 2010
496.1
197.8 86.9 50.4 36.1 24.4
Amortisation of mining assets
September 2010
(191.1)
(97.2) (29.9) (30.3) (19.2) (17.8)
June 2010
(176.3)
(87.7) (25.2) (27.8) (18.2) (16.5)
Net operating profit
September 2010
341.6
89.7 64.6 4.0 20.7 0.4
June 2010
320.0
110.1 61.7 22.6 17.9 7.9
Other expenses
September 2010
(33.2)
(18.5) (3.2) (5.7) (2.2) (7.5)
June 2010
(29.1)
(18.5) (3.7) (6.1) (1.3) (7.4)
Profit/(loss) before taxation
September 2010
308.4
71.2 61.4 (1.7) 18.5 (7.1)
June 2010
290.8
91.6 58.0 16.5 16.6 0.5
Mining and income taxation
September 2010
(109.0)
(20.8) (17.3)
3.8 (9.8)
2.6
June 2010
(115.1)
(36.7)
(22.2) (7.1) (6.8) (0.6)
- Normal taxation
September 2010
(55.9)
(4.3) (6.0) 1.8 (0.1)
-
June 2010
(46.0)
(11.7)
(11.1) (0.4) (0.2)
-
- Royalties
September 2010
(29.6)
(6.3) (4.5) (0.8) (0.6) (0.4)
June 2010
(28.8)
(6.4) (4.6) (0.9) (0.5) (0.4)
- Deferred taxation
September 2010
(23.6)
(10.1) (6.9) 2.8 (9.0) 3.0
June 2010
(40.3)
(18.6) (6.5) (5.8) (6.1) (0.2)
Profit/(loss) before exceptional items
September 2010
199.4
50.4 44.1 2.1 8.7 (4.5)
June 2010
175.6
54.9 35.8 9.4 9.8 (0.1)
Exceptional items
September 2010
(16.5)
(15.1) (4.9) (7.0) (3.1) (0.1)
June 2010
(1.2)
(1.2) (0.1) (0.3) (0.3) (0.4)
Net profit/(loss)
September 2010
182.9
35.3 39.2 (4.9) 5.6 (4.5)
June 2010
174.4
53.7 35.7 9.1 9.5 (0.5)
Net profit/(loss) excluding gains and losses on
foreign exchange, financial instruments and
exceptional items
September 2010
194.0
44.7 42.2 (0.6) 7.5 (4.5)
June 2010
170.6
54.5 35.8 9.1 10.0 (0.4)
Capital expenditure
September 2010
(301.6)
(178.9)
(46.7) (45.6) (19.6)
(66.9)
June 2010
(285.2)
(164.2) (44.3) (42.0) (24.9) (53.0)
Average exchange rates were US$1 = R7.36 and US$1 = R7.51 for the September and June 2010 quarters respectively.
The Australian dollar exchange rates were A$1 = R6.59 and A$1 = R6.66 for the September 2010 and June 2010 quarters respectively.
GOLD FIELDS RESULTS I 22
Operating and financial results
UNITED STATES DOLLARS
West Africa Region
South
America
Region
Australasia Region
AUSTRALIAN
DOLLARS
Ghana
Peru
Australia
#
Australasia Region
#
Total
Tarkwa Damang
Cerro
Corona
Total
St Ives
Agnew Total
St Ives
Agnew
Operating Results
Ore milled/treated
September 2010
6,987 5,750
1,237
1,607
1,857
1,648
209
1,857
1,648
209
(000 tonnes)
June 2010
7,517 6,192
1,325
1,485
1,930
1,746
184
1,930
1,746
184
Yield (ounces per tonne)
September 2010
0.035 0.032
0.046
0.066
0.083
0.072
0.169
0.083
0.072
0.169
June 2010
0.034 0.032
0.043
0.065
0.077
0.067
0.172
0.077
0.067
0.172
Gold produced (000 ounces)
September 2010
242.0 185.5
56.5
105.8
153.2
117.9
35.3
153.2
117.9
35.3
June 2010
257.0 200.2
56.8
96.5
149.2
117.5
31.7
149.2
117.5
31.7
Gold sold (000 ounces)
September 2010
242.0 185.5
56.5
113.7
153.2
117.9
35.3
153.2
117.9
35.3
June 2010
257.0 200.2
56.8
90.2
149.2
117.5
31.7
149.2
117.5
31.7
Gold price received
September 2010
1,225 1,223
1,229
1,252
1,217
1,216
1,220
1,359
1,358
1,363
(dollars per ounce)
June 2010
1,197 1,196
1,198
1,103
1,205
1,209
1,191
1,359
1,363
1,343
Total cash cost
September 2010
616 601
666
354
658
666
632
735
744
706
(dollars per ounce)
June 2010
623 599
704
369
703
692
743
792
780
838
Notional cash expenditure
September 2010
883 885
879
456
951
950
954
1,062
1,061
1,065
(dollars per ounce)
June 2010
795 771
881
502
1,080
981
1,447
1,217
1,106
1,632
Operating costs
September 2010
20 18
30
23
58
51
114
65
57
127
(dollars per tonne)
June 2010
20 18
29
23
55
48
122
62
54
138
Financial Results ($ million)
Revenue
September 2010
296.4 226.9
69.5
142.4
186.5
143.4
43.1
208.3
160.2
48.1
June 2010
306.6 238.7
67.9
99.4
179.3
141.6
37.7
202.1
159.7
42.5
Operating costs, net
September 2010
(142.8) (107.5)
(35.3)
(39.4)
(97.3)
(74.9)
(22.3) (108.6)
(83.7)
(24.9)
June 2010
(151.3) (113.3)
(38.0)
(32.2)
(103.4)
(79.2)
(24.2) (116.6)
(89.3)
(27.3)
- Operating costs
September 2010
(139.8) (103.2)
(36.5)
(37.1)
(108.2)
(84.5)
(23.8) (120.9)
(94.3)
(26.5)
June 2010
(151.4) (113.0)
(38.4)
(34.1)
(106.5)
(84.1)
(22.4) (120.1)
(94.8)
(25.3)
- Gold inventory change
September 2010
(3.1) (4.3)
1.2
(2.3)
11.0
9.5
1.4
12.2
10.6
1.6
June 2010
0.1 (0.3)
0.4
1.9
3.1
4.9
(1.8)
3.5
5.5
(2.0)
Operating profit
September 2010
153.5 119.4
34.2
103.0
89.2
68.5
20.8
99.7
76.5
23.2
June 2010
155.3 125.4
29.9
67.2
75.9
62.4
13.5
85.5
70.4
15.2
Amortisation of mining
September 2010
(34.6) (29.9)
(4.6)
(15.0)
(44.4)
(49.6)
assets
June 2010
(38.9) (33.5)
(5.4)
(14.5)
(35.3)
(39.8)
Net operating profit
September 2010
119.0 89.4
29.5
88.1
44.9
50.1
June 2010
116.4 91.9
24.5
52.7
40.6
45.7
Other expenses
September 2010
(3.3) (2.5)
(0.8)
(8.6)
(2.8)
(3.1)
June 2010
(4.6) (3.7)
(0.9)
(4.9)
(1.1)
(1.4)
Profit before
September 2010
115.7 87.0
28.7
79.4
42.1
47.0
taxation
June 2010
111.9 88.2
23.7
47.8
39.6
44.3
Mining and income taxation
September 2010
(44.5) (33.8)
(10.8)
(28.1)
(15.7)
(17.5)
June 2010
(43.9) (34.3)
(9.6)
(20.7)
(13.9)
(17.3)
- Normal taxation
September 2010
(29.0) (23.5)
(5.5)
(22.6)
-
-
June 2010
(25.2) (17.6)
(7.6)
(8.6)
(0.6)
(0.7)
- Royalties
September 2010
(14.8) (11.3)
(3.5)
(3.9)
(4.6)
(5.1)
June 2010
(15.5) (12.0)
(3.5)
(2.7)
(4.2)
(5.3)
- Deferred taxation
September 2010
(0.8) 1.1
(1.8)
(1.6)
(11.1)
(12.4)
June 2010
(3.2) (4.7)
1.5
(9.4)
(9.1)
(11.3)
Profit before
September 2010
71.2 53.2
17.9
51.4
26.4
29.5
exceptional items
June 2010
67.9 53.9
14.0
27.1
25.6
27.0
Exceptional items
September 2010
(0.2) (0.2)
-
-
(1.2)
(1.3)
June 2010
- -
-
-
-
-
Net profit
September 2010
71.0 53.0
17.9
51.4
25.2
28.2
June 2010
67.9 53.9
14.0
27.1
25.6
27.0
Net profit excluding gains
and losses on foreign
exchange, financial instru-
ments and exceptional items
September 2010
71.4 53.4
17.9
51.4
26.5
29.6
June 2010
68.2 54.1
14.1
25.9
22.0
28.3
Capital expenditure
September 2010
(74.0) (60.9)
(13.2)
(11.1)
(37.5)
(27.6)
(9.9)
(41.9)
(30.8)
(11.1)
June 2010
(52.5) (41.0)
(11.5)
(14.4)
(54.1)
(30.8)
(23.3)
(61.0)
(34.7)
(26.3)
# 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.
23 I GOLD FIELDS RESULTS
Total cash cost
Gold Industry Standards Basis
Figures are in South African rand millions unless otherwise stated
Total
Mine
Operations
South Africa Region
West Africa Region
South
America
Region
Australasia Region
Ghana
Peru
Australia
Total
Driefontein
Kloof
Beatrix
South
Deep
Total
Tarkwa
Damang
Cerro
Corona
Total
St Ives
Agnew
Operating costs
(1)
Sept 2010
(5,173.4)
(3,075.1) (1,038.0)
(910.7)
(627.2)
(499.2) (1,028.7)
(759.8)
(268.9)
(273.1)
(796.5)
(621.7)
(174.8)
June 2010
(5,102.5)
(2,904.5) (1,018.8)
(882.9)
(555.2)
(447.6) (1,140.1)
(850.9)
(289.2)
(256.1)
(801.8)
(633.2)
(168.6)
Gold-in-process and
Sept 2010
25.3
- -
-
-
-
(22.1)
(30.1)
8.0
(11.9)
59.3
51.4
7.9
inventory change*
June 2010
19.6
- -
-
-
-
(6.5)
(9.8)
3.3
9.2
16.9
26.9
(10.0)
Less:
Sept 2010
(28.6)
(23.4) (9.3)
(7.4)
(4.4)
(2.3)
(1.3)
(1.1)
(0.2)
(9.0)
(3.0)
(2.5)
(0.5)
Rehabilitation costs
June 2010
(30.4)
(22.2) (8.9)
(6.9)
(4.0)
(2.4)
(2.3)
(1.8)
(0.5)
(3.0)
(2.9)
(2.3)
(0.6)
Production taxes
Sept 2010
(8.4)
(8.4) (2.0)
(3.5)
(1.3)
(1.6)
-
-
-
-
-
-
-
June 2010
4.5
4.5 (0.9)
7.8
(1.0)
(1.4)
-
-
-
-
-
-
-
General and admin
Sept 2010
(177.6)
(74.1) (27.9)
(23.0)
(13.9)
(9.3)
(61.4)
(52.2)
(9.2)
(16.4)
(25.7)
(15.5)
(10.2)
June 2010
(183.2)
(79.5) (28.8)
(25.6)
(14.9)
(10.2)
(58.8)
(47.8)
(11.0)
(14.5)
(30.4)
(21.5)
(8.9)
Cash operating costs
Sept 2010 (4,933.5)
(2,969.2) (998.8)
(876.8)
(607.6)
(486.0)
(988.1)
(736.6)
(251.5)
(267.7)
(708.5)
(552.3)
(156.2)
June 2010
(4,873.8)
(2,807.3) (980.2)
(858.2)
(535.3)
(433.6) (1,085.5)
(811.1)
(274.4)
(229.4)
(751.6)
(582.5)
(169.1)
Plus:
Sept 2010
(8.4)
(8.4) (2.0)
(3.5)
(1.3)
(1.6)
-
-
-
-
-
-
-
Production taxes
June 2010
4.5
4.5 (0.9)
7.8
(1.0)
(1.4)
-
-
-
-
-
-
-
Royalties
Sept 2010
(217.6)
(46.4) (32.8)
(5.8)
(4.6)
(3.2)
(109.1)
(83.5)
(25.6)
(28.4)
(33.7)
(25.7)
(8.0)
June 2010
(220.7)
(48.3) (34.3)
(6.8)
(4.1)
(3.1)
(115.9)
(90.1)
(25.8)
(20.9)
(35.6)
(27.8)
(7.8)
TOTAL CASH COST
(2)
Sept 2010 (5,159.5)
(3,024.0) (1,033.6)
(886.1)
(613.5)
(490.8) (1,097.2)
(820.1)
(277.1)
(296.1)
(742.2)
(578.0)
(164.2)
June 2010
(5,090.0)
(2,851.1) (1,015.4)
(857.2)
(540.4)
(438.1) (1,201.4)
(901.2)
(300.2)
(250.3)
(787.2)
(610.3)
(176.9)
Plus:
Sept 2010 (1,390.7)
(715.5) (220.3)
(223.1)
(141.3)
(130.8)
(254.8)
(221.7)
(33.1)
(115.1)
(305.3)
Amortisation*
June 2010 (1,310.2)
(660.8) (190.0)
(209.5)
(136.8)
(124.5)
(285.6)
(245.0)
(40.6)
(104.3)
(259.5)
Rehabilitation
Sept 2010
(28.6)
(23.4) (9.3)
(7.4)
(4.4)
(2.3)
(1.3)
(1.1)
(0.2)
(0.9)
(3.0)
June 2010
(30.4)
(22.2) (8.9)
(6.9)
(4.0)
(2.4)
(2.3)
(1.8)
(0.5)
(3.0)
(2.9)
TOTAL PRODUCTION Sept 2010 (6,578.8) (3,762.9) (1,263.2) (1,116.6)
(759.2)
(623.9) (1,353.3) (1,042.9)
(310.4) (412.1)
(1,050.5)
COST
(3)
June 2010 (6,430.6) (3,534.1) (1,214.3) (1,073.6)
(681.2)
(565.0) (1,489.3) (1,148.0)
(341.3)
(357.6) (1,049.6)
Gold sold
Sept 2010
1,006.0
497.0 193.5
129.9
102.9
70.7
242.0
185.5
56.5
113.7
153.2
117.9
35.3
– thousand ounces
June 2010
984.6
488.2 185.9
140.5
91.8
70.0
257.0
200.2
56.8
90.2
149.2
117.5
31.7
TOTAL CASH COST
Sept 2010
697
827 726
927
810
944
616
601
666
354
658
666
632
– US$/oz
June 2010
688
778 727
813
784
834
623
599
704
369
703
692
743
TOTAL CASH COST
Sept 2010 164,898
195,627 171,780
219,277
191,599
223,294
145,769
142,156
157,622
83,691
155,728
157,579
149,545
– R/kg
June 2010 166,215
187,770 175,584
196,201
189,216
201,333
150,307
144,748
169,892
89,202
169,655
167,022
179,412
TOTAL PRODUCTION Sept 2010
889
1,029 887
1,168
1,002
1,200
760
764
746
492
931
COST – US$/oz
June 2010
870
964 870
1,018
988
1,075
772
764
800
528
937
TOTAL PRODUCTION Sept 2010
210,259
243,427 209,939
276,318
237,102
283,849
179,793
180,777
176,564
116,478
220,415
COST – R/kg
June 2010 209,992
232,752 209,978
245,731
238,515
259,651
186,326
184,388
193,152
127,441
226,207
DEFINITIONS
Total cash cost and Total production cost 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 cost – Operating costs less off-mine costs, which include general and administration costs, as detailed in the table above.
(3)
Total production cost – Total cash cost plus amortisation/depreciation and rehabilitation provisions, as detailed in the table above.
* Adjusted for amortisation/depreciation (non-cash item) excluded from gold-in-process change.
Average exchange rates were US$1 = R7.36 and US$1 = R7.51 for the September 2010 and the June 2010 quarters respectively.
GOLD FIELDS RESULTS I 24
Capital expenditure
Figures are in South African rand millions unless otherwise stated
Total
Mine
Operations
South Africa Region
West Africa Region
South
America
Region
Australasia Region
Ghana
Peru
Australia
Total
Driefontein
Kloof
Beatrix
South
Deep
Total
Tarkwa
Damang
Cerro
Corona
Total
St
Ives
Agnew
Sustaining capital
September 2010 (1,602.5)
(796.1) (315.6)
(335.9)
(144.6)
- (519.7)
(448.1)
(71.6)
(82.0)
(204.7)
(148.6)
(56.1)
June 2010
(1,609.7)
(799.3) (296.2)
(315.6)
(187.5)
- (369.3)
(308.5)
(60.8)
(108.0)
(333.1)
(184.2)
(148.9)
Project capital
September 2010
(492.4)
(492.4) -
-
-
(492.4)
-
-
-
-
-
-
-
June 2010
(398.7)
(398.7) -
-
-
(398.7)
-
-
-
-
-
-
-
Uranium capital
September 2010
(28.3)
(28.3) (28.3)
-
-
-
-
-
-
-
-
-
-
June 2010
(37.7)
(37.7) (37.7)
-
-
-
-
-
-
-
-
-
-
Brownfields
September 2010
(96.3)
-
-
-
-
-
(25.2)
-
(25.2)
-
(71.1)
(54.2)
(16.9)
exploration June 2010
(100.5)
-
-
-
-
-
(25.8)
-
(25.8)
-
(74.7)
(47.7)
(27.0)
Total capital
September 2010 (2,219.5)
(1,316.8) (343.9)
(335.9)
(144.6)
(492.4)
(544.9)
(448.1)
(96.8)
(82.0)
(275.8)
(202.8)
(73.0)
expenditure June 2010
(2,146.6)
(1,235.7) (333.9)
(315.6)
(187.5)
(398.7)
(395.1)
(308.5)
(86.6)
(108.0)
(407.8)
(231.9)
(175.9)
Notional cash expenditure
##
Figures are in South African rand millions unless otherwise stated
Total
South Africa Region
West Africa Region
South
America
Region
Australasia Region
Corporate
Ghana
Peru
Australia
Total
Driefontein
Kloof
Beatrix
South
Deep
Total
Tarkwa
Damang
Cerro
Corona
Total
St
Ives
Agnew
Operating costs
September 2010
(5,173.4) (3,075.1) (1,038.0)
(910.7)
(627.2)
(499.2)
(1,028.7)
(759.8)
(268.9)
(273.1) (796.5)
(621.7)
(174.8)
-
June 2010
(5,102.5) (2,904.5) (1,018.8)
(882.9)
(555.2)
(447.6)
(1,140.1)
(850.9)
(289.2)
(256.1) (801.8)
(633.2)
(168.6)
-
Capital
September 2010
(2,225.4) (1,316.8) (343.9)
(335.9)
(144.6)
(492.4)
(544.9)
(448.1)
(96.8)
(82.0) (275.8)
(202.8)
(73.0)
(5.9)
expenditure June 2010
(2,156.9) (1,235.7) (333.9)
(315.6)
(187.5)
(398.7)
(395.1)
(308.5)
(86.6)
(108.0) (407.8)
(231.9)
(175.9) (10.3)
Notional cash
September 2010
238,348
284,118 229,666
308,488
241,037
451,137
209,061
209,378
208,020 107,900 224,990
224,782
225,683
-
expenditure
June 2010
235,223
272,669 233,910
274,319
260,049
388,925
192,068
186,219
212,677 121,326 260,690
236,754
349,391
-
– R/kg
Notional cash
September 2010
1,007
1,201 971
1,304
1,019
1,907
883
885
879
456
951
950
954
-
expenditure June 2010
974
1,129 969
1,136
1,077
1,611
795
771
881
502
1,080
981
1,447
-
– US$/oz
##
Notional cash expenditure (NCE) per kilogram (ounce) = operating costs plus capital expenditure divided by gold produced.
25 I GOLD FIELDS RESULTS
Underground and surface
South African rand and metric units
Total
Mine
Operations
South Africa Region
West Africa Region
South
America
Region
Australasia Region
Ghana
Peru
Australia
Operating Results
Total Driefontein
Kloof
Beatrix
South
Deep
#
Total
Tarkwa Damang
Cerro
Corona
Total
St
Ives
Agnew
Ore milled/treated (000 tonne)
- underground
September 2010
3,086 2,531 793
577
686
475
-
-
-
-
555
410
145
June 2010
3,144 2,580 841
599
697
443
-
-
-
-
564
405
159
- surface
September 2010
11,424 1,528 728
529
251
20
6,987
5,750
1,237
1,607
1,302
1,238
64
June 2010
11,719 1,351 753
558
20
20
7,517
6,192
1,325
1,485
1,366
1,341
25
- total
September 2010
14,510 4,059 1,521
1,106
937
495
6,987
5,750
1,237
1,607
1,857
1,648
209
June 2010
14,863 3,931 1,594
1,157
717
463
7,517
6,192
1,325
1,485
1,930
1,746
184
Yield (grams per tonne)
- underground
September 2010
5.6
5.7 6.8
6.4
4.5
5.9
-
-
-
-
5.4
4.7
7.4
June 2010
5.4
5.4 6.1
6.5
4.1
6.3
-
-
-
-
5.1
4.8
6.0
- surface
September 2010
1.2
0.7 0.9
0.6
0.5
0.5
1.1
1.0
1.4
2.0
1.3
1.4
0.3
June 2010
1.2
0.9 0.9
0.9
0.9
0.5
1.1
1.0
1.3
2.0
1.3
1.3
1.5
- combined
September 2010
2.1
3.8 4.0
3.7
3.4
4.4
1.1
1.0
1.4
2.0
2.6
2.2
5.3
June 2010
2.1
3.9 3.6
3.8
4.0
4.7
1.1
1.0
1.3
2.0
2.4
2.1
5.4
Gold produced (kilograms)
- underground
September 2010
17,359
14,335 5,357
3,714
3,076
2,188
-
-
-
-
3,024
1,945
1,079
June 2010
16,929
14,034 5,142
3,887
2,838
2,167
-
-
-
-
2,895
1,946
949
- surface
September 2010
13,683 1,123 660
327
126
10
7,527
5,769
1,758
3,291
1,742
1,723
19
June 2010
13,889 1,150 641
482
18
9
7,993
6,226
1,767
3,001
1,745
1,708
37
- total
September 2010
31,042
15,458 6,017
4,041
3,202
2,198
7,527
5,769
1,758
3,291
4,766
3,668
1,098
June 2010
30,818
15,184 5,783
4,369
2,856
2,176
7,993
6,226
1,767
3,001
4,640
3,654
986
Operating costs (Rand per tonne)
- underground
September 2010
1,091 1,160 1,202
1,512
892
1,050
-
-
-
-
778
639
1,172
June
2010
1,046 1,083 1,129
1,408
796
1,008
-
-
-
-
874
814
1,030
- surface
September 2010
158
91 116
72
62
30
147
132
217
170
280
291
77
June 2010
155
82 92
70
10
60
152
137
218
172
226
226
196
- total
September 2010
357 758 682
823
669
1,008
147
132
217
170
429
377
836
June 2010
343 739 639
763
774
967
152
137
218
172
415
363
916
# September quarter includes 105,000 tonnes (June quarter 98,000 tonnes) of waste processed from underground. In order to show the yield based on ore mined,
the calculation of the yield at South Deep only, excludes the underground waste.
GOLD FIELDS RESULTS I 26
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 2010 quarter
June 2010 quarter
Reef
Carbon Leader
Main
VCR
Carbon Leader
Main
VCR
Advanced (m)
5,213
417
1,501
4,418 648
1,349
Advanced on reef
(m)
797
35
151
608 172 173
Sampled (m)
663
81
69
558 114 108
Channel width
(cm)
59
33
89
100 42 79
Average value
-
(g/t)
34.7
19.4
18.3
18.9 8.8
17.4
-
(cm.g/t)
2,048
641
1,631
1,884 372
1,369
Kloof
September 2010 quarter
June 2010 quarter
Reef
Kloof
Main
VCR
Kloof
Main
VCR
Advanced (m)
123
627
4,074
241 1,022 4,600
Advanced on reef
(m)
2
243
752
13 231 848
Sampled (m)
3
296
705
22 243 711
Channel width
(cm)
195
79
109
145 69 99
Average value
-
(g/t)
11.2
12.0
26.1
7.7 13.9 29.2
-
(cm.g/t)
2,184
943
2,853
1,118 953
2,904
Beatrix
September 2010 quarter
June 2010 quarter
Reef
Beatrix
Kalkoenkrans
Beatrix
Kalkoenkrans
Advanced (m)
4,779
1,707
5,839 2,151
Advanced on reef
(m)
1,554
296
1,153 384
Sampled (m)
1,593
285
1,062 366
Channel width
(cm)
111
92
98 96
Average value
-
(g/t)
7.9
15.3
7.7 17.2
-
(cm.g/t)
881
1,409
748 1,643
South Deep
September 2010 quarter
June 2010 quarter
Reef
Elsburgs
1,2
Elsburgs
1,2
Main Advanced
(m)
2,982
2,449
- Main above 95 level
(m)
1,774
1,369
- Main below 95 level
(m)
1,208
1,080
Advanced on reef
(m)
1,664
1,280
Average value
(g/t)
5.6
4.4
1) Trackless development in the Elsburg reefs is evaluated by means of the resource model.
2) Full channel width not fully exposed in development, hence not reported.
Administration and corporate information
Corporate Secretary
Cain Farrel
Tel: (+27)(11) 562 9742
Fax: (+27)(11) 562 9829
e-mail: cain.farrel@goldfields.co.za
Investor Enquiries
Willie Jacobsz
Tel: (+508) 839 1188
Mobile: (+857) 241 7127
e-mail: willie.jacobsz@gfexpl.com
Nikki Catrakilis-Wagner
Tel: (+2711) 562 9706
Mobile: (+27) 83 309 6720
e-mail: nikki.catrakilis-wagner@goldfields.co.za
Media Enquiries
Sven Lunsche
Tel: (+2711) 562 9763
Mobile: (+27) 83 260 9279
e-mail: sven.lunsche@goldfields.co.za
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) 688 5248
United Kingdom
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
England
Tel: 0871 664 0300 [calls cost 10p a minute
plus network extras, lines are open
8.30am-5.30pm Mon-Fri] or
[from overseas] +44 20 8639 3399
Fax: +44 20 8658 3430
e-mail: ssd@capitaregistrars.com
Website
http://www.goldfields.co.za
Listings
JSE / NYSE / NASDAQ Dubai: GFI
NYX: GFLB
SWX: GOLI
Certain 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, Ghana, Australia, Peru and
elsewhere; the ability to achieve anticipated
efficiencies and other cost savings in
connection with past and future acquisitions,
exploration and development activities;
decreases in the market price of gold and/or
copper; hazards associated with underground
and surface gold mining; labour disruptions;
availability terms and deployment of capital or
credit; changes in government regulations,
particularly environmental regulations; and new
legislation affecting mining and mineral rights;
changes in exchange rates; currency
devaluations; inflation and other macro-
economic factors, industrial action, temporary
stoppages of mines for safety and unplanned
maintenance reasons; 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
150 Helen Road
Sandown
Sandton
2196
Postnet Suite 252
Private Bag X30500
Houghton 2041
Tel: (+27)(11) 562 9700
Fax: (+27)(11) 562 9829
Office of the United Kingdom Secretaries
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 Mellon
BNY Mellon Shareowner Services
P O Box 358516
Pittsburgh, PA15252-8516
US toll-free telephone: (1)(888) 269 2377
Tel: (+1) 201 680 6825
e-mail: shrrelations@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
M A Ramphele (Chair) °
N J Holland *· (Chief Executive Officer)
PA Schmidt · (Chief Financial Officer)
K Ansah
#
°
CA Carolus°
R Dañino **°
A R Hill
±
°
R P Menell °
D N Murray °
D M J Ncube °
R L Pennant-Rea *°
C I von Christierson °
G M Wilson °
* British
#
Ghanaian
±
Canadian
** Peruvian ° Independent Director · Non-independent Director
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: 4 November 2010
GOLD FIELDS LIMITED
By:
Name: Mr W J Jacobsz
Title: Senior Vice President: Investor
Relations and Corporate Affairs