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 2011
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- ________
RECORD QUARTERLY EARNINGS OF R2.1 BILLION
JOHANNESBURG. 10 November 2011, Gold Fields Limited (NYSE & JSE: GFI) today announced record net earnings for the September
quarter of R2,055 million compared with R1,267 million in the June quarter and earnings of R701 million in the September 2010 quarter. In US
dollar terms net earnings for the September quarter were US$293 million, compared with US$186 million in the June quarter and earnings of
US$95 million in the September 2010 quarter.
September 2011 quarter salient features:
· Group attributable equivalent gold production of 900,000 ounces, 3 per cent higher than the June quarter;
· Operating margin increased from 47 per cent to 51 per cent and NCE margin from 21 per cent to 29 per cent;
· Loans repaid of US$195 million funded from operating activities; and
· Second down payment of US$66 million made in the Far Southeast project in the Philippines, on positive drilling results.
Statement by Nick Holland, Chief Executive Officer of Gold Fields:
“Gold Fields has demonstrated its ability to translate the rising gold
price to the bottom line with a 62 per cent increase in net earnings to
R2,055 million during the September quarter. Over the same period
the gold price increased by 14 per cent in US dollar terms and 18 per
cent in Rand terms.
Attributable production for the Group increased by 3 per cent from
872,000 gold equivalent ounces in the June quarter to 900,000 gold
equivalent ounces in the September quarter. This improvement was
achieved despite the five day wage related industrial action at our
South African operations. The acquisition of non-controlling interests
in our Ghanaian operations contributed to the higher attributable
production figure. It also enhanced the geographical diversification of
our portfolio, with about 50 per cent of production now derived from
our international operations.
Sound cost control remains in place across the Group with the on-
going Business Process Re-engineering initiatives delivering
satisfactory results. As a consequence, net operating cost in the
South Africa region was only 2 per cent higher than the June quarter
despite the annual wage increase effective from 1 July, as well as two
months of significantly higher winter electricity tariffs in South Africa.
The notional cash expenditure (NCE) margin for the Group increased
to 29 per cent in the September quarter, well ahead of the June
quarter’s 21 per cent and the Group’s long-term target of 25 per cent.
The NCE margin in the South Africa region improved to 16 per cent in
the September quarter from 7 per cent in the June quarter. Excluding
the impact of the South Deep project which is in a build-up phase and
not yet generating positive NCE margins, the South Africa region’s
NCE margin was 24 per cent, up from 15 per cent in the June quarter.
In Australasia, the NCE margin increased from 16 per cent in the
June quarter to 24 per cent in the September quarter. In West Africa,
the NCE margin for the September quarter was 46 per cent and in
South America 58 per cent, both similar to the June quarter.
Safety remains our most important operational challenge. Despite a
decline of 25 per cent in the Group’s fatal injury frequency rate during
the quarter, unfortunately we still had six fatalities at our South
African operations. Although we have achieved an encouraging
improvement in the Group safety over the past three years there has
been limited progress in the past 12 months despite our best efforts.
We maintain our commitment to safety and will continue to focus on
further improvements.
During the September quarter significant progress was made in
support of our growth strategy to achieve 5 million quality gold
equivalent ounces, in production or in development, by the end of
2015, while at the same time diversifying our production base across
the globe. These strategies are primarily driven through our project
pipeline.
At Chucapaca in Peru, we announced an updated indicated and
inferred mineral resource of 7.6 million gold equivalent ounces for
the Canahuire deposit, a 35 per cent increase over the initial
resource of 5.6 million ounces declared in May 2010. All drilling for
the feasibility study was completed during October 2011 and we aim
to finalise the feasibility study and submit the Environmental Impact
Assessment (EIA) application by mid-2012.
At the Far Southeast project in the Philippines, the initial proof-of
concept drill results have confirmed our initial understanding of the
scale and grade of the deposit and demonstrated significant upside
potential at depth and in all lateral directions. On the back of positive
drilling results we have made the second down payment of US$66
million in terms of the option agreements to acquire a 60 per cent
interest in the project. We have eight drill rigs on site and plan to
deliver a first resource during the second half of 2012.
At the Arctic Platinum project in Finland, we have completed the two
50 tonne pilot plant test programmes, which largely confirmed the
previous bench scale test work indicating an improvement of up to
25 per cent in metallurgical recoveries. The current focus is on
consolidating these results in a pre-feasibility study which is
underway.
At the Yanfolila project in southern Mali, we have completed a
scoping study which indicates that the project requires a minimum
1.5 million ounces resource base to satisfy project thresholds.
Exploration drilling to expand the resource base is scheduled to start
in the December quarter.
In South Africa, the South Deep project continues to progress and
we anticipate completing the key infrastructure projects, being the
ventilation shaft and the expansion to the processing plant by the
end of 2012.
At the Damang open pit expansion project in Ghana, we are
targeting a 4 million ounce open pit mining resource to support a
potential doubling of production. Work on this project is continuing
apace.”
Stock data
JSE Limited – (GFI)
Number of shares in issue
Range - Quarter
ZAR95.80 – ZAR141.01
- at end September 2011
723,310,693
Average Volume - Quarter
2,577,103 shares / day
- average for the quarter
723,159,600
NYSE – (GFI)
Free Float
100 per cent
Range - Quarter
US$14.25 – US$17.89
ADR Ratio
1:1
Average Volume - Quarter
4,950,355 shares / day
Bloomberg / Reuters
GFISJ / GFLJ.J
1 I GOLD FIELDS RESULTS
Safety
The Group’s fatal injury frequency rate improved from 0.20 in the
June quarter to 0.15 in the September quarter. Despite this
improvement six fatalities occurred during the quarter at the South
Africa region. Two fatalities were seismic-related in one accident, two
fatalities were due to gravity falls of ground, with the remaining two
fatalities the result of a tramming accident and drilling into a misfire.
Together with the improved fatal injury frequency rate there were
other significant achievements during the quarter. KDC once again
achieved one million fatality free shifts, and Agnew and Damang
reported zero lost day injuries. The lost day injury frequency rate,
however, regressed from 4.86 to 4.95 and the days lost frequency
rate regressed from 201 to 223.
The strategy of engineering out the safety-related risks in the Group
and ensuring compliance to standards and codes of practice
continues to be core to improving the safety environment.
Definitions
Lost Day Injury (LDI) takes into account any injury occurring in the
workplace where a person is unable to attend a full shift due to his
injury at any time following the injury.
Days Lost takes into account the number of days lost due to injuries
recorded.
Financial review
Quarter ended 30 September 2011 compared with quarter
ended 30 June 2011
Revenue
Attributable gold production increased by 3 per cent from 872,000
ounces in the June quarter to 900,000 ounces in the September
quarter. At the South African operations, production decreased by 4
per cent from 447,000 ounces to 428,000 ounces. This decrease in
production was mainly due to a six day strike during the quarter
arising from wage negotiations.
Attributable gold production at the West African operations increased
by 26 per cent from 168,000 ounces to 211,000 ounces. Most of this
increase was a direct result of the buy-out of the non-controlling
interest with effect from 25 June, which increased the Group holding
from 71.1 per cent in the June quarter to 90.0 per cent in the
September quarter. Attributable equivalent gold production at Cerro
Corona in Peru decreased by 6 per cent, from 98,000 ounces to
92,000 ounces, mainly due to the lower copper/gold price ratio. At
the Australian operations, gold production increased by 6 per cent
from 159,000 ounces to 169,000 ounces due to improved
underground grades mined and processed.
At the South Africa region, gold production at KDC increased by 2 per
cent from 272,500 ounces (8,475 kilograms) in the June quarter to
279,200 ounces (8,684 kilograms) in the September quarter. This
increase in production was achieved despite shifts lost due to the
wage-related industrial action and safety-related stoppages.
SOUTH AFRICAN RAND
Key statistics
UNITED STATES DOLLARS
Nine months to
Quarter
Quarter
Nine months to
Sept
2010
Sept
2011
Sept
2010
June
2011
Sept
2011
Sept
2011
June
2011
Sept
2010
Sept
2011
Sept
2010
80,851
80,934
28,232 27,118 28,008 kg
Gold produced*
oz (000)
900
872 908
2,602
2,599
166,772
179,768
164,898 177,934 192,997 R/kg Total cash cost $/oz
851
816 697 806
695
238,522
258,884
238,348 256,692 274,615 R/kg
Notional cash expenditure
$/oz
1,212
1,178 1,007 1,160
994
43,636
44,415
14,510 15,187 14,770 000 Tonnes milled/treated 000
14,770
15,187 14,510 44,415
43,636
281,418
341,045
289,329 326,206 385,684 R/kg Revenue $/oz
1,702
1,496 1,223 1,528
1,173
345
353
357 346 369 R/tonne Operating costs $/tonne
52
51 48 51
46
10,229
14,203
3,921 4,457 5,655 Rm Operating profit $m
804
656 533
2,047
1,372
41
48
43 47 51 % Operating margin %
51
47 43 48
41
15
24
18 21 29 % NCE margin %
29
21 18 24
15
1,917
4,422
701 1,267 2,055 Rm
Net earnings
$m
293
186 95
637
258
271
612
99 175 284 SA c.p.s.
US c.p.s.
40
26 13 88
36
2,030
4,426
699 1,270 2,054 Rm
Headline earnings
$m
293
187 95
638
273
287
613
99 176 284 SA c.p.s.
US c.p.s.
40
26 13 88
39
2,282
4,590
1,016 1,326 2,111 Rm
Net earnings excluding
gains and losses on foreign
exchange, financial
instruments, non-recurring
items and share of
profit/(loss) of associates
after royalties and taxation
$m
301
195 138 661
307
323
635
144 184 291 SA c.p.s.
US c.p.s.
42
27 20 92
44
* 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 (90.0 per cent) and Cerro Corona in Peru (98.5 per cent).
Gold produced (and sales) throughout this report includes copper gold equivalents of approximately 6 per cent.
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.
GOLD FIELDS RESULTS I 2
Resultant production losses were offset by an increase in surface
tonnes milled and an increase in the underground and surface yields.
At Beatrix, gold production decreased by 14 per cent from 98,000
ounces (3,048 kilograms) to 84,700 ounces (2,636 kilograms) and at
South Deep, gold production decreased by 15 per cent from 76,100
ounces (2,366 kilograms) to 64,400 ounces (2,003 kilograms), both
due to the industrial action which resulted in lower volumes mined
and processed.
At the West Africa region, managed gold production at Tarkwa was
steady at 180,000 ounces despite excessive rainfall which disrupted
operations and the processing of a harder blend of ore this quarter.
At Damang, gold production decreased marginally, from 56,300
ounces to 54,300 ounces.
At the South America region, equivalent gold production at Cerro
Corona decreased by 7 per cent from 101,000 equivalent ounces in
the June quarter to 93,900 equivalent ounces in the September
quarter due to the lower copper prices relative to the gold prices.
At the Australasia region, St Ives’ gold production increased by 6 per
cent from 108,700 ounces to 115,000 ounces due to an increase in
underground grades and increased mill throughput. At Agnew, gold
production increased by 7 per cent from 50,400 ounces to 53,700
ounces. Lower underground volumes mined and processed were
offset by increased yields and an increase in production from
Songvang.
The average quarterly US dollar gold price achieved increased from
US$1,496 per ounce in the June quarter to US$1,702 per ounce in
the September quarter. The average Rand/US dollar exchange rate
of R7.05 was 4 per cent weaker than the June quarter average of
R6.78, while the average Australian dollar exchange rate was similar
when compared with the US dollar at A$1.00 = US$1.06. The
resultant rand gold price increased by 18 per cent from R326,206 per
kilogram to R385,684 per kilogram and the Australian dollar gold
price increased by 15 per cent from A$1,420 per ounce to A$1,638
per ounce.
Revenue increased by 15 per cent from R9,581 million (US$1,411
million) in the June quarter to R11,060 million (US$1,570 million) in
the September quarter.
Operating costs
Net operating costs increased by 5 per cent from R5,124 million
(US$755 million) in the June quarter to R5,404 million (US$766
million) in the September quarter. Total cash cost increased from
R177,934 per kilogram (US$816 per ounce) to R192,997 per
kilogram (US$851 per ounce), an increase of 8 per cent in rand terms
and 4 per cent in dollar terms. The increase in the total cash cost
was due to an increase in the royalties due to the higher gold price,
the annual wage increase in South Africa effective from 1 July 2011
and higher electricity winter tariffs in South Africa. Refer to the total
cash cost reconciliation on page 23 for more detail.
At the South Africa region, net operating costs increased by 2 per
cent from R3,074 million (US$453 million) to R3,131 million (US$444
million). This increase was due to an extra month of significantly
higher winter electricity tariffs (two months compared with one month
in the previous quarter) and wage increases averaging 10 per cent of
basic pay, effective from 1 July 2011. These cost increases were
partly offset by ongoing savings from the Business Process Re-
engineering (BPR) initiatives and a decrease in costs over the period
of industrial action due to the no-work no-pay rule. The net result of
the lower production and increase in costs was an increase in total
cash cost of 7 per cent from R220,261 per kilogram (US$1,010 per
ounce) to R235,780 per kilogram (US$1,040 per ounce).
At the West Africa region, net operating costs increased from
US$122 million (R825 million) to US$132 million (R931 million) due to
a lower gold-in-process credit in the September quarter, together with
increased power and fuel costs. Total cash cost at the West African
operations increased from US$564 per ounce in the June quarter to
US$617 per ounce in the September quarter.
At Cerro Corona in South America, net operating costs increased
from US$38 million (R258 million) to US$41 million (R289 million).
This was mainly due to an increase in the workers’ statutory
participation in profits. Total cash cost increased from US$408 per
ounce in the June quarter to US$494 per ounce in the September
quarter due to the lower equivalent production and the increase in
costs.
At the Australasia region, net operating costs increased from A$135
million (R967 million) to A$142 million (R1,053 million). This was
mainly due to increased underground mining volumes and increased
mill throughput at St Ives together with increased production from the
Songvang open pit at Agnew. Total cash cost for the region
decreased from A$858 per ounce (US$909 per ounce) to A$844 per
ounce (US$891 per ounce) due to the 6 per cent increase in gold
output.
Operating margin
The net effect of the changes in revenue and costs, after taking into
account gold-in-process movements, was a 27 per cent increase in
operating profit from R4,457 million (US$656 million) in the June
quarter to R5,655 million (US$804 million) in the September quarter.
The Group operating margin at 51 per cent was 4 percentage points
higher than the June quarter. The operating margin at the South
African operations increased from 33 per cent to 40 per cent. At the
West African operations the operating margin increased from 66 per
cent to 67 per cent. At Cerro Corona in South America, the operating
margin decreased from 73 per cent to 69 per cent and at the
Australian operations the operational margin increased from 40 per
cent to 49 per cent.
Amortisation
Amortisation increased from R1,277 million (US$188 million) in the
June quarter to R1,377 million (US$195 million) in the September
quarter mainly due to an increase at St Ives and to a lesser extent at
Damang. The increase at St Ives was due to an increase in
underground volumes mined, mainly at Athena, replacing open pit
ounces which carried a lower amortisation rate.
Other
Net interest paid increased from R32 million (US$5 million) in the
June quarter to R69 million (US$10 million) in the September quarter.
This increase was mainly due to interest paid for a full quarter on
loans to fund the purchase of the non-controlling interest in Peru and
Ghana. In the September quarter interest paid of R120 million
(US$17 million) was partly offset by interest received of R39 million
(US$6 million) and interest capitalised of R12 million (US$1 million).
This compares with interest paid of R88 million (US$13 million), partly
offset by interest received of R39 million (US$6 million) and interest
capitalised of R17 million (US$2 million) in the June quarter.
The share of profit of associates after taxation of R5 million (US$1
million) in the September quarter compared with R1 million (US$nil
million) in the June quarter. These profits related mainly to the
Group’s interest in Rand Refinery.
The gain on foreign exchange of R72 million (US$10 million) in the
September quarter compares with a loss of R19 million (US$3
million) in the June quarter. These gains and losses relate to the
conversion of offshore cash holdings into their functional currencies,
together with a gain of R48 million (US$7 million) on inter-company
loans in the September quarter.
The loss on financial instruments was R0.3 million (US$nil million) in
the September quarter, compared with a gain of R25 million (US$4
million) in the June quarter. The gain in the June quarter mainly
related to the receipt of 15 million shares in Timpetra Resources, in
exchange for Central Victoria tenements, an Australian exploration
project.
Share-based payments of R122 million (US$17 million) were similar
to the June quarter.
Other costs decreased from R85 million (US$13 million) in the June
quarter to R74 million (US$11 million) in the September quarter.
3 I GOLD FIELDS RESULTS
Exploration
Exploration expenditure decreased from R214 million (US$31 million)
in the June quarter to R189 million (US$27 million) in the September
quarter mainly due to project timing. Refer to the exploration and
corporate development section of this report for more detail on
exploration activities.
Feasibility and evaluation costs
Feasibility and evaluation costs increased from R17 million (US$3
million) in the June quarter to R48 million (US$7 million) in the
September quarter mainly due to timing of expenditure at the Far
Southeast (FSE) project in the Philippines.
Non-recurring items
The non-recurring items of R167 million (US$24 million) in the
September quarter and the R101 million (US$15 million) in the June
quarter were mainly due to voluntary separation packages, business
process re-engineering and restructuring costs at all our operations.
Royalties
Government royalties increased from R236 million (US$35 million) in
the June quarter to R305 million (US$43 million) in the September
quarter. The higher royalty in the September quarter was mainly due
to the increased revenue on which royalties are calculated.
Taxation
Taxation for the September quarter amounted to R1,223 million
(US$174 million) compared with R866 million (US$128 million) in the
June quarter, which is in line with the higher taxable income. Normal
taxation increased from R521 million (US$77 million) in the June
quarter to R841 million (US$120 million). Deferred taxation increased
from R346 million (US$51 million) in the June quarter to R382 million
(US$54 million) in the September quarter.
Earnings
Net earnings attributable to owners of the parent amounted to R2,055
million (US$293 million) or 284 SA cents per share (US$0.40 per
share) in the September quarter, compared with earnings of R1,267
million (US$186 million) or 175 SA cents per share (US$0.26 per
share) in the June quarter.
Headline earnings i.e. earnings excluding the after tax effect of asset
sales, impairments and the sale of investments, amounted to R2,054
million (US$293 million) or 284 SA cents per share (US$0.40 per
share), compared with earnings of R1,270 million (US$187 million) or
176 SA cents per share (US$0.26 per share) in the June quarter.
Earnings excluding non-recurring items as well as gains and losses
on foreign exchange, financial instruments and gains or losses of
associates after royalties and taxation amounted to R2,111 million
(US$301 million) or 291 SA cents per share (US$0.42 per share),
compared with earnings of R1,326 million (US$195 million) or 184 SA
cents per share (US$0.27 per share) reported in the June quarter.
Cash flow
Cash inflow from operating activities for the quarter amounted to
R5,057 million (US$717 million), compared with R2,954 million
(US$436 million) in the June quarter mainly as a result of the higher
earnings and timing of royalty and taxation payments.
In the September quarter dividends of R724 million (US$102 million)
were paid to owners of the parent and R147 million (US$21 million)
paid to non-controlling interest holders at Tarkwa, Damang and Cerro
Corona. In the June quarter dividends of R7 million (US$1 million)
were paid to non-controlling interest holders at Cerro Corona.
Capital expenditure increased from R2,285 million (US$336 million)
in the June quarter to R2,607 million (US$370 million) in the
September quarter.
At the South Africa region, capital expenditure increased from R1,169
million (US$172 million) in the June quarter to R1,266 million
(US$180 million) in the September quarter mainly due to an increase
in ore reserve development (ORD) and infrastructure upgrades.
Capital expenditure at South Deep amounted to R492 million (US$70
million) in the September quarter compared with R472 million (US$69
million) in the June quarter, with the majority of the expenditure on
development and equipping the mine to achieve its build-up plan.
Expenditure on ORD at KDC increased from R436 million to R454
million and at Beatrix increased from R101 million to R103 million
quarter on quarter.
At the West Africa region, capital expenditure increased from US$69
million to US$73 million due to additional pre-stripping and increased
expenditure on mining fleet at Damang. This was partly offset by the
lower expenditure on mining fleet at Tarkwa, with the requirements
for 2011 now complete.
In South America, at Cerro Corona, capital expenditure was similar to
the June quarter at US$17 million.
At the Australasia region, capital expenditure increased from A$56
million to A$73 million. St Ives increased from A$39 million to A$52
million, with the majority of the increased expenditure resulting from
the pre-strip at the Formidable pit, Mars/Minotaur link and Diana open
pit. At Agnew, capital expenditure increased from A$17 million to
A$20 million, with the increased expenditure on a new ventilation
system at the Waroonga complex.
Investing activities included a second payment of R535 million
(US$66 million) for the FSE project. This is in line with the terms of
the option agreements to acquire a 60 per cent interest in the
undeveloped gold-copper deposit in the Philippines. The option
agreements were entered into with Lepanto Consolidated Mining
Company (Lepanto), a company listed in the Philippines, and Liberty
Express Assets, a private holding company.
Net cash outflow from financing activities in the September quarter
amounted to R1.4 billion (US$185 million) compared with a net cash
inflow of R2.8 billion (US$404 million) in the June quarter. The net
cash outflow in the September quarter was mainly due to the
repayment of an offshore facility of R1,389 million (US$180 million).
The net cash outflow for the September quarter of R406 million
(US$30 million) compared with an outflow of R2,288 million (US$347
million) in the June quarter. After accounting for a positive translation
adjustment of R496 million (US$53 million negative) on offshore cash
balances, the net cash inflow for the September quarter was R90
million (US$83 million negative). The cash balance at the end of
September was R4,435 million (US$548 million) compared with
R4,345 million (US$631 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
near-mine exploration and the Group’s share of capitalised feasibility
costs, and is reported on a per kilogram and per ounce basis – refer
to the detailed table on page 24 of this report.
NCE reflects the free cash flow available to pay taxation, interest,
greenfields exploration, pre-feasibility projects and dividends.
The NCE margin is defined as the difference between revenue per
ounce and NCE per ounce expressed as a percentage.
The Group NCE for the September quarter amounted to R274,615
per kilogram (US$1,212 per ounce) compared with R256,692 per
kilogram (US$1,178 per ounce) in the June quarter. The NCE margin
for the Group increased from 21 per cent to 29 per cent, driven by the
higher gold price and sound cost control.
At the South Africa region, NCE per kilogram increased from
R305,501 per kilogram (US$1,401 per ounce) to R330,023 per
kilogram (US$1,456 per ounce). The NCE margin of 16 per cent in
the September quarter compares with 7 per cent in the June quarter.
The higher margin was due to the higher gold price, partially offset by
the increase in operating costs and higher capital expenditure. NCE
excluding the funding of South Deep increased from R280,986 per
kilogram (US$1,289 per ounce) in the June quarter to R296,343 per
kilogram (US$1,307 per ounce) in the September quarter. The NCE
margin excluding South Deep was 24 per cent in the September
quarter compared with 15 per cent in the June quarter.
GOLD FIELDS RESULTS I 4
At the West Africa region, NCE per ounce increased from US$885
per ounce to US$924 per ounce, while the NCE margin, driven by the
higher gold price, increased from 41 per cent to 46 per cent.
At the South America region, NCE per ounce increased from US$526
per ounce in the June quarter to US$615 per ounce in the September
quarter due to the increased operating costs together with the
decrease in production. Despite decreasing from 62 per cent to 58
per cent the NCE margin at Cerro Corona remains the highest in the
Group.
At the Australasia region, NCE per ounce increased from A$1,195
per ounce (US$1,265 per ounce) in the June quarter to A$1,238 per
ounce (US$1,307 per ounce) in the September quarter due to
increased operating costs and increased capital expenditure. The
NCE margin, however, increased from 16 per cent in the June
quarter to 24 per cent in the September quarter due to the higher
gold price.
Balance sheet
The cash balance decreased from R5,464 million (US$810 million) at
the end of the December quarter to R4,435 million (US$548 million)
at the end of September. This decrease was mainly due to partly
funding the buy-out of a portion of the non-controlling interest holders
in Gold Fields La Cima in Peru and IamGold’s 18.9 per cent indirect
holding in Tarkwa and Damang in Ghana.
Net debt (long-term loans plus the current portion of long-term loans
less cash and deposits) increased from R3,974 million (US$589
million) in the December quarter to R11,096 million (US$1,370
million) by the end of September. This increase in borrowings was
largely to fund the buy-out of a portion of the non-controlling interest
holders in Gold Fields La Cima and Ghana during the year which
amounted to approximately R7.1 billion (US$1,049 million), capital
expenditure of R7.0 billion (US$1,003 million), dividend payments of
R1.4 billion (US$206 million) and R0.5 billion (US$66 million) on the
second instalment of the FSE project option, together with exchange
rate movements of R1.8 billion. These payments were partly offset by
cash generated from operating activities of R10.8 billion (US$1,550
million).
Operational review
Cost and revenue optimisation initiatives through
Business Process Re-engineering (BPR)
BPR commenced during the second half of calendar 2010 and is an
ongoing business initiative. BPR involves a review of the mines’
operational production processes and associated cost structures from
the stope to the mill. The objective is to introduce a new business
blueprint, together with an appropriate organisational structure, which
supports sustainable gold output at an NCE margin of 20 per cent in
the short to medium term and 25 per cent in the long-term.
South Africa region
The BPR underpins the suite of M projects which were established
during financial 2008. The BPR will effectively replace the M suite of
projects by the end of financial 2011.
BPR – Stoping full potential (Project 1M)
Project 1M is a productivity initiative with the aim of improving quality
mining volumes by increasing the face advance by between 5 and 10
per cent per annum. The BPR Stoping full potential project has
effectively replaced project 1M at KDC. It aims to enable the delivery
of full potential at every workface by introducing standardised
reporting and practices, implementing effective production
management and control systems to enable teams to manage the
business more effectively. In effect, addressing advance per blast to
drive quality-volume and removing key constraints which affect
productivity on a shaft by shaft basis, including effective face times,
logistics in-flow and out-flow models and mining cycles.
A programme management office was established to steer the
project, monitor progress and develop solutions. The programme
consists of 10 key initiatives:
· Safety. Develop new processes and systems to monitor and
manage safe production, as well as interventions focused on
changing people behaviour.
· Target area process. Focus on creating increased visibility of the
workplace, with improved actions to enable a quality blast.
· Advance per blast. Focus on behaviour, practices and training to
improve quality rock breakage.
· Front-line labour management. Ensure daily labour availability
with the right skills mix.
· Monthly planning. Enhance current protocol by way of improved
reports and standardisation across the operations.
· Panel/face-length availability. Redesign reports, create improved
visibility and actions to improve the face-length availability.
· Art of cleaning. Focus on training the front-line workers and first-
line supervision to effectively clean a blasted panel.
· Cost management. Adherence to labour standards and norms as
well as the effective use of utilities.
· Leadership training. Enhance skills.
· Communication and change. Drive key messages both up and
down the organisation, focus on the key objectives and targets of
the business.
The programme is on track, and crew performance has been
stabilised.
BPR – Developing full potential (Project 2M)
The BPR full potential development project will be fully implemented
by year end and replaces project 2M, which is a technology initiative
aimed at mechanising all flat-end development (i.e. development on
the horizontal plane) at the long-life shafts of KDC and Beatrix.
South Deep 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
development advance rates.
Ninety one per cent of flat-end development metres advanced at
long-life shafts were achieved by mechanised means.
NCE full potential (Project 3M)
The BPR NCE full potential project focuses on all categories of
expenditure and replaces project 3M. BPR aims to mitigate as much
of the anticipated mining inflation increases as possible. Savings
since this initiative started in mid-2010 amount to R353 million, of
which R59 million was achieved in the September quarter.
The second phase of the project is currently being incorporated into
the 2012 operational plans, targeting cost reductions of between
R500 million (US$62 million) and R1.0 billion (US$123 million) for the
South Africa mines.
These cost saving initiatives will be achieved through various
programmes which include productivity improvement initiatives,
continued optimisation of staff structures and complements, a
reduction in non-specialised contractors, enhanced supply chain
management and power consumption reduction initiatives.
Project 4M
Project 4M focuses on the Mine Health and Safety Council (MHSC)
milestones agreed at a tripartite health and safety summit on 15 June
2003, comprising representatives from Government, organised labour
and mining companies. The focus is on achieving set 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 110dB
(A) after December 2013. In order to achieve this target the company
is focusing on reducing the noise at source.
The number of measurements expressed as a percentage of noise
measurements of machinery and equipment emitting noise in excess
of 110dB (A) is currently 0.8 per cent. Most of the sound pressures
exceeding 110dB (A) is where two or more rockdrill machines are
5 I GOLD FIELDS RESULTS
drilling in a panel simultaneously. Silencing of equipment is ongoing
and each intervention is project managed.
In order to reduce dust exposure targets the company continuously
refines interventions, which include:
· Building health rooms at each of the mines training centres to
assist with the coaching of employees on potential exposures and
wearing of protective instruments.
· The use of foggers to trap dust particles liberated from tipping
points. The foggers are placed in intake airways to prevent dust
from entering the main air stream.
· Footwall treatment to bind dust onto the footwall and prevent it
from being released into the intake airways; and
· The analysis of individual filters to assist in determining exposure.
West Africa region
Tarkwa
Continued consolidation of several productivity, cost saving and
efficiency initiatives, has resulted in cost savings of US$14 million for
the year to date of which US$4 million was achieved this quarter.
As identified in the previous quarter, North heap leach recovery and
mining volumes were the focus areas in the September quarter. The
removal of bottlenecks at the North heap leach has resulted in a 10
per cent improvement in gold output from heap leaching since the
March quarter. This was mainly due to the installation of three new
large tertiary crushers which were commissioned during May. Insofar
as mining operations are concerned dump truck efficiency has
improved, resulting in a 6 per cent improvement in utilisation. This
increased utilisation did not result in an increase in mining volumes
as truck availability was hampered by the excessive rainfall during
the quarter.
Focus for the December quarter will be directed towards mining
performance, with the aim of realising additional mined tonnes.
Utilisation improvements will be maintained with increased focus on
productivity and equipment availability of the load and haul fleet.
Damang
Focus during the quarter was on maximising the benefits realised on
the conversion from contractor to owner operation and owner
maintenance. To date, benefits of US$18 million have been achieved,
of which US$7 million was realised in the September quarter.
Phase 2 of the BPR continued during the September quarter, with
the focus on mining and processing efficiencies. To date, satisfactory
improvements in the use of mining equipment availabilities have
been recorded.
In the December quarter we will continue to focus on mining and
processing efficiencies. Additional opportunities to be pursued will
include improving the mine call factor through the introduction of the
blast movement monitoring system, and the introduction of an
additional mining shift to maximise the use of the mining fleet.
Australasia region
St Ives
At the end of July, St Ives transitioned from an underground mining
contractor to owner operator for production at the Argo and Cave
Rocks mines. This has allowed for an elimination of contractor
margins and for greater control of mining activities. Savings of over
A$1 million per month have been realised in the first two months, with
significant opportunities for further improvements identified.
Development remains with the contractor and an improved
performance has resulted from this sole focus.
The heap leach operation has had a step change in throughput
levels. This was achieved through the installation and commissioning
of a diverter gate to automatically discharge all magnetic material
which previously stopped production until a manual inspection and
restart occurred. The diverter gate transfers any detected material to
a bunded area, allowing the flow of ore to continue. Commissioned
late in the September quarter, the benefits will only be fully realised
from the December quarter.
The Lefroy mill also realised increases in ore production volumes
through improved coarse ore stockpile management during planned
shutdowns of the primary crusher. Previously throughput dropped by
approximately 10 per cent during fortnightly preventative
maintenance shutdowns due to excessive coarse ore feed during
these events. The manual loading of fine material to restore optimum
blends during these periods has resulted in a 55 per cent reduction of
this lost throughput.
During the December quarter focus will be on completing a
centralised data room at Lefroy and the transition to remote bogging
from surface at Athena, which is expected to realise additional ore
loading capacity.
Agnew
During the September quarter, BPR focused primarily on the
underground operations. Emphasis was placed on the delivery of
key projects, optimisation of the mine planning process, refinement of
operational data collection and reporting systems. Short-term interval
control remains a key focus area. This ensures supervisors closely
monitor production rates during each shift, quickly reacting to any
element of the process which could negatively impact production.
Specific focus has been on trucking efficiency.
The key production metrics are tracked and displayed at the
Waroonga information centre to ensure all members of the production
team are aware of the operational performance on a day to day
basis. The focus and involvement of the entire production team has
assisted in delivering more than 50,000 ounces during the September
quarter.
Additional BPR initiatives will be introduced in 2012 to maintain the
momentum that has been built in 2011. Performance monitoring and
improvement initiatives together with training and deployment to the
entire underground production team are part of maintaining the drive
into 2012.
South Africa region
KDC
September
2011
June
2011
Gold produced
- 000’oz
279.2
272.5
- kg
8,684
8,475
Yield - underground
- g/t
6.2
6.0
- combined
- g/t
3.1
3.2
Total cash cost
- R/kg
227,395
225,133
- US$/oz
1,003
1,033
Notional cash expenditure
- R/kg
295,164
290,289
- US$/oz
1,302
1,332
NCE margin
- %
24
11
Gold production increased from 272,500 ounces (8,475 kilograms) in
the June quarter to 279,200 ounces (8,684 kilograms) in the
September quarter. This increase was achieved despite the lost
production due to the wage-related industrial action, safety stoppages
and interventions following seismic-related events.
Underground tonnes milled decreased from 1.27 million tonnes in the
June quarter to 1.22 million tonnes in the September quarter, offset
by an increase in yield from 6.0 grams per tonne to 6.2 grams per
tonne. This increase was largely due to higher grades encountered
on the western section of the mine as well as an improved recovery.
Surface tonnes milled increased from 1.38 million tonnes to 1.58
million tonnes and the surface yield increased from 0.6 grams per
tonne to 0.7 grams per tonne.
Main development decreased by 11 per cent from 11,740 metres to
10,460 metres, while on-reef development decreased from 2,040
metres to 1,475 metres. This decrease was due to the industrial
action and the safety-related stoppages. The average development
value increased from 1,991 centimetre grams per tonne to 2,150
centimetre grams per tonne.
Operating costs increased from R1,915 million (US$282 million) to
R1,952 million (US$277 million). This increase was mainly due to one
GOLD FIELDS RESULTS I 6
month of higher winter tariffs in the June quarter compared with two
high winter tariff months in the September quarter, annual salary
increases and higher surface-ore transport costs. Total cash cost for
the quarter increased from R225,133 per kilogram (US$1,033 per
ounce) in the June quarter to R227,395 per kilogram (US$1,003 per
ounce) in the September quarter.
Operating profit increased from R862 million (US$127 million) in the
June quarter to R1,432 million (US$204 million) in the September
quarter.
Capital expenditure increased from R545 million (US$80 million) to
R611 million (US$87 million) mainly due to timing of expenditure on
various projects and an increase in ore reserve development.
Notional cash expenditure increased from R290,289 per kilogram
(US$1,332 per ounce) in the June quarter to R295,164 per kilogram
(US$1,302 per ounce) in the September quarter as a result of the
higher capital expenditure. The NCE margin increased from 11 per
cent to 24 per cent.
Beatrix
September
2011
June
2011
Gold produced
- 000’oz
84.7
98.0
- kg
2,636
3,048
Yield - underground
- g/t
4.6
4.5
- combined
- g/t
2.9
2.8
Total cash cost
- R/kg
236,002
203,871
- US$/oz
1,041
935
Notional cash expenditure
- R/kg
300,228
255,118
- US$/oz
1,325
1,170
NCE margin
- %
25
23
Gold production decreased from 98,000 ounces (3,048 kilograms) in
the June quarter to 84,700 ounces (2,636 kilograms) in the
September quarter due to safety-related stoppages and the wage-
related industrial action.
Underground tonnes milled decreased from 648,000 tonnes to
547,000 tonnes. The underground yield improved slightly from 4.5
grams per tonne to 4.6 grams per tonne. Surface tonnes milled
decreased from 422,000 tonnes to 352,000 tonnes. Surface yield
remained steady quarter-on-quarter at 0.3 grams per tonne.
Main development decreased from 6,682 metres in the June quarter
to 5,442 metres in the September quarter. The on-reef development
decreased from 1,673 metres to 1,182 metres due to the industrial
action and the five day stoppage after the fatal accident caused by
drilling into a misfire. The average main development value
decreased from 1,325 centimetre grams per tonne in the June
quarter to 1,109 centimetre grams per tonne in the September
quarter and reflects the value variability of the zones currently being
developed.
Operating costs were steady at R625 million (US$92 million) in the
June quarter compared with R628 million (US$89 million) in the
September quarter. Good cost control enabled annual wage
increases and winter power tariffs to be absorbed. Total cash cost
increased from R203,871 per kilogram (US$935 per ounce) to
R236,002 per kilogram (US$1,041 per ounce) due to the lower
production.
Operating profit increased from R385 million (US$56 million) in the
June quarter to R427 million (US$61 million) in the September
quarter.
Capital expenditure increased from R152 million (US$23 million) to
R163 million (US$23 million) with the majority spent on infrastructure
upgrades and ore reserve development.
Notional cash expenditure increased from R255,118 per kilogram
(US$1,170 per ounce) in the June quarter to R300,228 per kilogram
(US$1,325 per ounce) in the September quarter due to the
decreased production. The NCE margin increased from 23 per cent
to 25 per cent.
South Deep project
September
2011
June
2011
Gold produced
- 000’oz
64.4
76.1
-
kg
2,003
2,366
Yield - underground
- g/t
5.0
5.3
- combined
- g/t
3.2
3.4
Total cash cost
- R/kg
271,842
223,922
-
US$/oz
1,199
1,027
Notional cash expenditure
- R/kg
520,369
424,894
-
US$/oz
2,296
1,949
NCE margin
- %
(32)
(29)
The South Deep capital infrastructure programme continues to meet
its key delivery dates to support the build-up to full production of
750,000 ounces. The new tailings storage facility achieved first
deposition in April this year and has now been commissioned. The
ventilation shaft deepening project remains on track for
commissioning in the September 2012 quarter and the additional rock
hoisting will build to a nameplate capacity of 195,000 tonnes per
month. This, together with the existing Main shaft capacity of
175,000 tonnes per month, will deliver the full production to the mill.
The gold plant expansion from 220,000 tonnes to 330,000 tonnes per
month is under construction, with commissioning planned in the
September 2012 quarter. The capital development has achieved 105
per cent of planned metres year to date and capital expenditure is on
track.
Gold production decreased from 76,100 ounces (2,366 kilograms) in
the June quarter to 64,400 ounces (2,003 kilograms) in the
September quarter mainly due to the wage-related industrial action.
Underground reef ore processed during the quarter decreased by 6
per cent from 419,000 tonnes to 392,000 tonnes, largely due to the
wage-related industrial action as mentioned above.
Total tonnes milled, which included 108,000 tonnes from surface
sources and 123,000 tonnes of off-reef development, decreased from
690,000 tonnes in the June quarter to 623,000 tonnes in the
September quarter. The on-reef yield decreased from 5.3 grams per
tonne to 5.0 grams per tonne mainly due to changes in mining mix.
Development decreased from 3,063 metres in the June quarter to
2,938 metres in the September quarter. The new mine capital
development in phase 1, sub 95 level, decreased from 1,173 metres
to 1,160 metres. Development in the current mine areas above 95
level decreased from 1,709 metres to 1,484 metres. Vertical
development increased from 181 metres to 294 metres. De-stress
mining increased by 23 per cent from 5,554 square metres in the
June quarter to 6,815 square metres in the September quarter.
Operating costs increased from R533 million (US$79 million) in the
June quarter to R550 million (US$78 million) in the September
quarter. The increase was mainly due to increased electricity costs,
with two winter tariff months in the quarter, and an increase in stores
cost for maintenance of mechanised equipment. Total cash cost
increased from R223,922 per kilogram (US$1,027 per ounce) to
R271,842 per kilogram (US$1,199 per ounce) in the September
quarter.
Operating profit decreased by 2 per cent from R245 million (US$36
million) in the June quarter to R240 million (US$34 million) in the
September quarter due to the 15 per cent lower gold production,
partly offset by the higher gold price received.
Capital expenditure increased from R472 million (US$69 million) in
the June quarter to R492 million (US$70 million) in the September
quarter, in line with the project plan. The majority of this capital
expenditure was on development, the ventilation shaft deepening and
7 I GOLD FIELDS RESULTS
infrastructure, the metallurgical plant extension, trackless equipment,
as well as the full plant tailings backfill and new tailings dam facility.
Notional cash expenditure increased from R424,894 per kilogram
(US$1,949 per ounce) in the June quarter to R520,369 per kilogram
(US$2,296 per ounce) in the September quarter as a result of the
lower gold production together with increased costs and capital
expenditure.
West Africa region
Ghana
Tarkwa
September
2011
June
2011
Gold produced
- 000’oz
180.0
180.8
Yield - heap leach
- g/t
0.6
0.5
- CIL plant
- g/t
1.4
1.4
- combined
- g/t
1.0
1.0
Total cash cost
- US$/oz
606
534
Notional cash expenditure
- US$/oz
869
889
NCE margin
- %
49
41
Gold production was steady quarter on quarter at 180,000 ounces.
Total tonnes mined, including capital stripping, was similar to the
June quarter at 28.8 million tonnes in the September quarter, despite
production being affected by excessive rainfall during the quarter.
Ore mined at 5.2 million tonnes was similar to the June quarter.
Mined grade at 1.24 grams per tonne was marginally higher than the
1.23 grams per tonne achieved during the June quarter.
The total feed to the CIL plant decreased from 2.92 million tonnes in
the June quarter to 2.84 million tonnes in the September quarter due
to a harder blend of ore processed. Yield was similar at 1.4 grams
per tonne. The CIL plant produced 131,000 ounces for the
September quarter compared with the 129,400 ounces in the June
quarter.
Total feed to the North and South heap leach pads decreased from
2.97 million tonnes to 2.76 million tonnes at a similar yield. The high
pressure grinding roller (HPGR) at the South heap leach processed
0.81 million tonnes, similar to the performance achieved during the
previous quarter. Feed to the North heap leach reduced from 2.15
million tonnes to 1.95 million tonnes due to mechanical failure of the
primary crusher, which as a result was non-operational for seven
days. The heap leach process produced 49,000 ounces, compared
with 51,400 ounces in the June quarter. The decrease was
attributable to the decreased tonnage stacked on both facilities.
Net operating costs increased from US$88 million (R596 million) in
the June quarter to US$102 million (R717 million) in the September
quarter. This increase was mainly due to a lower gold-in-process
credit of US$8 million (R55 million) in the September quarter
compared with a credit of US$21 million (R140 million) in the June
quarter. Total cash cost increased from US$534 per ounce in the
June quarter to US$606 per ounce in the September quarter, mainly
as a result of the lower gold-in-process credit and a higher royalty
payment due to the higher gold price received.
Operating profit increased from US$185 million (R1,257 million) to
US$206 million (R1,455 million).
Capital expenditure decreased from US$52 million (R354 million) in
the June quarter to US$47 million (R332 million) in the September
quarter, with the tailings dam expansion and pre-stripping being the
major expenditure items. The decreased expenditure this quarter
was due to the completion in the previous quarter of the acquisition of
additional mining fleet required for the year.
Notional cash expenditure decreased from US$889 per ounce to
US$869 per ounce due to the decrease in capital expenditure. The
NCE margin increased from 41 per cent to 49 per cent.
Damang
September
2011
June
2011
Gold produced
- 000’oz
54.3
56.3
Yield -
g/t
1.4
1.4
Total cash cost
- US$/oz
651
660
Notional cash expenditure
- US$/oz
1,107
876
NCE margin
- %
35
42
Gold production decreased from 56,300 ounces in the June quarter
to 54,300 ounces in the September quarter mainly due to power
interruptions from the state utility infrastructure (ECG). Initiatives are
in place, due to the continual instability of the power supply, to
generate an on-mine power supply, as well as to reduce reliance on
the ECG by tying into the national grid.
Total tonnes mined, including capital stripping, increased from 5.7
million tonnes in the June quarter to 6.7 million tonnes in the
September quarter. This increase is in line with the strategy to
expose long-term ore reserves and to increase the delivery of fresh
ore to the mill. Ore mined at 1.2 million tonnes was similar to the
previous quarter.
Tonnes processed decreased marginally from 1.27 million tonnes in
the June quarter to 1.23 million tonnes in the September quarter as a
result of the power interruptions highlighted above.
Net operating costs decreased from US$34 million (R229 million) in
the June quarter to US$30 million (R214 million) in the September
quarter due to an increased gold-in-process credit. Total cash cost
decreased from US$660 per ounce to US$651 per ounce.
Operating profit increased from US$51 million (R348 million) in the
June quarter to US$63 million (R442 million) in the September
quarter as a result of the higher gold price received and lower
operating cost.
Capital expenditure increased from US$17 million (R113 million) in
the June quarter to US$26 million (R185 million) in the September
quarter, with pre-stripping, mining fleet acquisitions and US$6 million
spent on the Greater Damang pre-feasibility study being the major
items.
Notional cash expenditure increased from US$876 per ounce in the
June quarter to US$1,107 per ounce in the September quarter as a
result of the increased capital expenditure. The NCE margin
decreased from 42 per cent to 35 per cent.
South America region
Peru
Cerro Corona
September
2011
June
2011
Gold produced
- 000’oz
41.9
41.1
Copper produced
- tonnes
9,599
9,814
Total equivalent gold produced - 000’ eq oz
93.9
101.0
Total equivalent gold sold
- 000’ eq oz
90.5
101.5
Yield - gold
- g/t
0.8
0.8
- copper
- %
0.60
0.60
- combined
- g/t
1.7
1.8
Total cash cost
- US$/eq oz
494
408
Notional cash expenditure
- US$/eq oz
615
526
NCE margin
- %
58
62
Gold price *
- US$/oz
1,693
1,499
Copper price *
- US$/t
9,137
9,176
* Average daily spot price for the period used to calculate total
equivalent gold ounces produced.

GOLD FIELDS RESULTS I 8
Gold produced increased from 41,100 ounces in the June quarter to
41,900 ounces in the September quarter, while copper production
decreased from 9,814 tonnes to 9,599 tonnes. These changes were
mainly due to variances in head grade delivered to the plant.
Equivalent production decreased from 101,000 ounces to 93,900
ounces due to the lower copper price relative to the gold price in the
September quarter.
Concentrate with a payable content of 41,500 ounces of gold was
sold at an average price of US$1,728 per ounce and 9,625 tonnes of
copper at an average price of US$8,164 per tonne, net of treatment
and refining charges. Total equivalent gold sales amounted to 90,500
ounces for the September quarter.
During the September quarter a total of 2.94 million tonnes were
mined compared with 3.48 million tonnes in the June quarter. This
decrease was as a result of the mine sequencing schedule. Ore
mined at 1.66 million tonnes was 3 per cent lower than the 1.71
million tonnes mined in the June quarter. Gold and copper yield was
similar to the previous quarter at 0.8 grams per ton and 0.60 per cent
respectively.
Net operating costs increased from US$38 million (R258 million) in
the June quarter to US$41 million (R289 million) in the September
quarter, mainly due to an increase in the workers’ statutory
participation in profits. The workers’ statutory participation in profits
is calculated on taxable income which increased quarter on quarter
despite a decrease in operating profit.
Total cash cost increased from US$408 per equivalent ounce in the
June quarter to US$494 per equivalent ounce for the September
quarter. This increase was primarily due to the decrease in
equivalent ounces sold from 101,500 ounces in the June quarter to
90,500 ounces in the September quarter.
Operating profit decreased from US$104 million (R704 million) in the
June quarter to US$93 million (R656 million) in the September
quarter, as a result of the increased costs and the lower copper spot
price received during the quarter.
Capital expenditure for the September quarter amounted to US$17
million (R118 million), compared with US$16 million (R106 million) in
the June quarter. The increased expenditure was mainly spent on
increasing the capacity of the tailings facility.
Notional cash expenditure increased from US$526 per equivalent
ounce in the June quarter to US$615 per equivalent ounce in the
September quarter. The NCE margin decreased from 62 per cent to
58 per cent.
Australasia region
Australia
St Ives
September
2011
June
2011
Gold produced
- 000’oz
115.0
108.7
Yield - heap leach
- g/t
0.6
0.5
- milling
- g/t
2.7
2.7
- combined
- g/t
2.1
2.0
Total cash cost
- A$/oz
927
959
-
US$/oz
978
1,015
Notional cash expenditure
- A$/oz
1,328
1,295
-
US$/oz
1,401
1,371
NCE margin
- %
18
9
Gold production increased from 108,700 ounces in the June quarter
to 115,000 ounces in the September quarter on the back of increased
throughput at the Lefroy mill.
At the underground operations, ore mined increased from 401,600
tonnes at 4.5 grams per tonne in the June quarter to 427,000 tonnes
at 4.9 grams per tonne in the September quarter. The increased
tonnes were generated from the Athena mine which reached
commercial levels of production during the September quarter, as
scheduled
. Improved grades were mainly from Argo, after some
lower grade areas were mined in the June quarter.
At the open pit operations total ore tonnes mined decreased from
1,038,000 tonnes at 1.7 grams per tonne in the June quarter to
992,000 tonnes at 1.5 grams per tonne in the September quarter.
The decrease in the September quarter was due to fleet moving from
mining operations to pre-strip operations in line with the mine
schedule. Ore was predominantly sourced from the lower grade
Leviathan pit during the quarter while pre-stripping progressed at the
Formidable, Mars/Minotaur link and Diana pits. These pits are
scheduled to come into production in the December 2011 quarter.
Total tonnes processed was similar quarter on quarter at 1.68 million
tonnes and 2.1 grams per tonne. At Lefroy, tonnes milled increased
from 1.15 million tonnes to 1.24 million tonnes, at a similar head
grade of 2.8 grams per tonne. Gold produced from Lefroy increased
from 100,700 ounces to 106,600 ounces. At the heap leach facility
gold production increased from 8,000 ounces to 8,400 ounces due to
improved recoveries.
Net operating costs increased from A$103 million (R740 million) in
the June quarter to A$106 million (R791 million) in the September
quarter. The increase in costs was due to a greater drawdown of
open pit stockpiles. Total cash cost decreased from A$959 per ounce
(US$1,015 per ounce) to A$927 per ounce (US$978 per ounce) as a
result of the higher gold production.
Operating profit increased from A$51 million (R365 million) to A$81
million (R599 million) due to the increased production and the higher
gold price.
Capital expenditure increased from A$39 million (R275 million) to
A$52 million (R384 million) with the majority of additional expenditure
incurred in pre-stripping the Formidable, Mars/Minotaur link and
Diana pits.
Notional cash expenditure increased from A$1,295 per ounce
(US$1,371 per ounce) in the June quarter to A$1,328 per ounce
(US$1,401 per ounce) in the September quarter due to the increased
capital expenditure. The NCE margin increased from 9 per cent to 18
per cent.
Agnew
September
2011
June
2011
Gold produced
- 000’oz
53.7
50.4
Yield -
g/t
6.4
6.8
Total cash cost
- A$/oz
667
641
-
US$/oz
704
679
Notional cash expenditure
- A$/oz
1,047
979
-
US$/oz
1,105
1,037
NCE margin
-
%
37
31
Gold production increased from 50,400 ounces in the June quarter to
53,700 ounces in the September quarter.
Ore mined from underground decreased from 183,000 tonnes at a
head grade of 8.8 grams per tonne in the June quarter to 148,000
tonnes at a head grade of 11.1 grams per tonne in the September
quarter. Underground tonnes were negatively impacted by
rehabilitation work in the Rajah orebody and a delay in completing
necessary infrastructure in the Main orebody. Both of these issues
have since been overcome. Ore mined from the Songvang open pit
increased from 90,000 tonnes to 135,000 tonnes at a consistent head
grade of 1.7 grams per tonne. Gold production from Songvang
increased from 2,900 ounces to 9,600 ounces quarter on quarter.
Tonnes processed increased from 231,000 tonnes in the June
quarter to 262,000 tonnes in the September quarter, with a decrease
in the combined yield from 6.8 grams per tonne to 6.4 grams per
tonne, as the tonnes mined from underground were supplemented
with lower grade surface material from the Songvang open pit.
9 I GOLD FIELDS RESULTS
Net operating costs increased from A$32 million (R227 million) in the
June quarter to A$35 million (R262 million) in the September quarter,
mainly due to the increased ore production from the Songvang open
pit during the quarter. Total cash cost per ounce increased from
A$641 per ounce (US$679 per ounce) to A$667 per ounce (US$704
per ounce) as more ounces were produced from the higher cost open
pit source.
Operating profit increased from A$41 million (R291 million) in the
June quarter to A$55 million (R404 million) in the September quarter
due to increased production and a higher gold price.
Capital expenditure increased from A$17 million (R124 million) in the
June quarter to A$20 million (R151 million) in the September quarter.
This included A$9 million spent on underground development and
A$4 million on a new ventilation system, incorporating a return air
shaft and primary ventilation fans for the extension of Waroonga
underground mine.
Notional cash expenditure increased from A$979 per ounce
(US$1,037 per ounce) in the June quarter to A$1,047 per ounce
(US$1,105 per ounce) in the September quarter due to increased
capital expenditure. The NCE margin increased from 31 per cent to
37 per cent.
Quarter ended 30 September 2011 compared
with quarter ended 30 September 2010
Group attributable equivalent gold production decreased by 1 per
cent from 908,000 ounces for the quarter ended September 2010 to
900,000 ounces for the quarter ended September 2011.
At the South African operations gold production decreased from
497,000 ounces to 428,300 ounces. The majority of this decrease
was due to the wage-related industrial action during the quarter,
safety-related stoppages and slightly lower yields. KDC’s gold
production decreased from 323,400 ounces to 279,200 ounces.
Beatrix’s gold production decreased from 102,900 ounces to 84,700
ounces and South Deep’s gold production decreased from 70,700
ounces to 64,400 ounces.
At the West African operations, total managed gold production
decreased from 242,000 ounces for the quarter ended September
2010 to 234,400 ounces for the quarter ended September 2011. At
Tarkwa, gold production decreased from 185,500 ounces to 180,000
ounces due to slightly lower grades fed to the CIL plant. At Damang,
gold production decreased from 56,500 ounces to 54,300 ounces.
In South America, gold equivalent production at Cerro Corona
decreased from 105,800 ounces in the September 2010 quarter to
93,900 ounces in the September 2011 quarter, due to anticipated
lower gold and copper grades and a lower copper to gold price ratio.
At the Australasia operations gold production increased by 10 per
cent from 153,200 ounces in the September 2010 quarter to 168,700
ounces in the September 2011 quarter. St Ives decreased from
117,900 ounces to 115,000 ounces due to lower underground and
open pit grades. This decrease in gold output was despite an
increase in mining volumes as a portion of the increased production
was stockpiled at quarter end. Production at Agnew increased from
35,300 ounces to 53,700 ounces. An additional 9,600 ounces were
produced from the Songvang open pit which commenced in the June
quarter, with the balance from increased production at Kim, where
poor ground conditions impacted production last year.
Revenue increased by 22 per cent from R9,053 million (US$1,230
million) to R11,060 million (US$1,570 million). The average gold
price increased by 33 per cent from R289,329 per kilogram
(US$1,223 per ounce) in the quarter ended September 2010 to
R385,684 per kilogram (US$1,702 per ounce) in the September 2011
quarter. The Rand strengthened from US$1 = R7.36 to US$1 =
R7.05 or 4 per cent, while the Rand/Australian dollar weakened by 13
per cent from A$1 = R6.59 to A$1 = R7.44. The Australian dollar
strengthened 18 per cent from 90 cents to 106 cents to the US dollar.
Net operating costs increased by 5 per cent from R5,132 million
(US$697 million) to R5,404 million (US$766 million). Total cash cost
for the Group increased from R164,898 per kilogram (US$697 per
ounce) to R192,997 per kilogram (US$851 per ounce) due to a
decrease in managed gold production and the increase in operating
costs.
At the South African operations, operating costs increased by 2 per
cent from R3,075 million (US$418 million) for the September 2010
quarter to R3,131 million (US$444 million) for the September 2011
quarter. This was due to annual wage increases and the 28 per cent
electricity tariff increase, partly offset by cost saving initiatives at the
operations. Total cash cost at the South African operations
increased from R195,627 per kilogram to R235,780 per kilogram as a
result of the above factors and the decrease in production.
At the West African operations, net operating costs decreased from
US$143 million in the September 2010 quarter to US$132 million in
the September 2011 quarter. At Tarkwa, net operating costs
decreased from US$108 million to US$102 million due to a gold-in-
process credit and the conversion to owner maintenance, partly offset
by an increase in power and fuel costs. At Damang, net operating
costs decreased from US$35 million to US$30 million. This decrease
was due to a gold-in-process credit and cost savings as a result of
the introduction of owner mining. Total cash cost for the region was
similar year on year at US$617 per ounce.
At Cerro Corona in South America, net operating costs increased
from US$39 million in the September 2010 quarter to US$41 million
in the September 2011 quarter, in line with the increase in workers’
statutory participation in profit. Total cash cost increased from
US$354 per ounce for the September 2010 quarter to US$494 per
ounce for the September 2011 quarter mainly due to the lower
equivalent production and an increase in the workers’ statutory
participation in profits.
At the Australasia operations, net operating costs increased from
A$109 million in the September 2010 quarter to A$142 million in the
September 2011 quarter. At St Ives, net operating costs increased
from A$84 million to A$106 million mainly due to increased waste
normalisation charges as a result of mining more ounces from the
more expensive Leviathan pit and the gold-in-process credit at the
end of September 2010.
At Agnew, net operating costs increased
from A$25 million to A$35 million due to the increase in production
from mining the Songvang open pit, which became operational earlier
this year. Total cash costs for the region increased from US$735 per
ounce for the September 2010 quarter to US$844 per ounce for the
September 2011 quarter.
Operating profit increased from R3,921 million (US$533 million) to
R5,655 million (US$804 million).
Non-recurring costs amounted to R167 million (US$24 million)
compared with R138 million (US$19 million) in the September 2010
quarter and included voluntary separation packages and BPR costs
at all the operations.
Government royalties increased from R218 million (US$30 million) in
the September 2010 quarter to R305 million (US$43 million) in the
September 2011 quarter driven by the increase in revenue and an
increase in the rate at Tarkwa and Damang, from 3 per cent to 5 per
cent with effect from 1 April 2011.
Taxation increased from R632 million (US$86 million) in the
September 2010 quarter to R1,223 million (US$174 million) in the
September 2011 quarter in line with the higher taxable income.
Net earnings attributable to owners of the parent amounted to R2,055
million (US$293 million), compared with earnings of R701 million
(US$95 million) for the quarter ended September 2010.
Earnings excluding non-recurring items, gains and losses on foreign
exchange, financial instruments and gains or losses of associates
after taxation, amounted to R2,111 million (US$301 million) for the
quarter ended September 2011, compared with R1,016 million
(US$138 million) for the quarter ended September 2010.
GOLD FIELDS RESULTS I 10
Growth
Gold Fields has a target of achieving five million ounces per annum,
either in production or in development, by the end of 2015. To this
end we are in the process of developing an extensive pipeline of
projects which is discussed below.
Project development
Far Southeast (FSE)
During the quarter the second down-payment of US$66 million was
made in terms of the option agreements to acquire a 60 per cent
interest in the undeveloped gold-copper FSE deposit in the
Philippines. Refer to the Corporate section for more detail.
Exploration at the project continued with eight underground diamond
drill rigs operating, drilling 10,745 metres during this quarter. The
initial proof-of-concept drilling programme was completed and
broadly confirms that the scale and grade of the deposit is consistent
with initial expectations. The higher grade mineralised zone (1.5 to
2.5 grams per tonne gold equivalent) central to the porphyry body
has been confirmed by the recent drilling. This programme also
demonstrated that significant upside potential exists at depth and in
most lateral directions. Ongoing drilling intends to scope the full
scale of the FSE mineralised system as well as complete a sufficient
number of in-fill holes to support the first resource model to be
delivered in the second half of 2012.
Surface diamond drilling commenced during the quarter to provide
detailed geotechnical data required for mine design studies. A
comprehensive geotechnical data collection programme is also
underway. Preliminary studies on hydrogeology and mine
geotechnical design parameters were completed during the quarter.
Chucapaca
At Chucapaca we announced an updated indicated and inferred
mineral resource of 7.6 million gold equivalent ounces for the
Canahuire deposit. This represents a 35 per cent increase over the
initial resource of 5.6 million ounces declared in May 2010.
Mineralisation remains open to the west. Drilling for the feasibility
study with geotechnical, civil and sterilisation drilling was completed
in October 2011. Work on the project description for submission to
the EIA and ongoing work on the feasibility study is progressing to
plan. Metallurgical test work is almost complete and the process flow
sheet will be finalised during the December 2011 quarter. The EIA
submission and the feasibility study are scheduled for completion by
mid-2012.
Arctic Platinum project (APP)
The Arctic Platinum project incorporates a pre-feasibility study on the
Suhanko project (mining and processing of the Konttijarvi and
Ahmavaara PGE-Cu-Ni deposits) and a preliminary assessment of
the mineralisation potential in the Suhanko extension area. This
extension includes known deposits at Little Suhanko (adjacent to the
Ahmavaara deposit), Vaaralampi, Tuumasuo and Suhanko North
which fall within the Suhanko II area, and is subject to the mining
lease application.
Work is focused on a base case pre-feasibility study on mining and
processing two PGE-Cu-Ni deposits (Konttijaarvi and Ahmavaara).
The proposed process route is to float a concentrate to feed into a
Platsol © high pressure oxidation process, followed by a
hydrometallurgical refinery to recover metals. Two 50 tonne pilot
plant test programmes were completed during the quarter, largely
confirming the bench-scale test work reported previously. The base
case pre-feasibility study should be completed by early 2012.
An amendment to the existing environmental permit to include the
proposed change to the process facility will be submitted in the
December 2011 quarter. Baseline work for the Suhanko II EIA for an
extended mining lease application on an upside case is proceeding in
parallel. The objective is to complete the EIA process by June 2012
and submit an environmental permit application for Suhanko II shortly
thereafter.
Scout exploration drilling on the Suhanko II extended area was
completed at the Tuumasuo and Vaaralampi deposits targeting
lateral and depth extensions. Eleven core holes for 3,492 metres
were completed and significant intersections of sulphide
mineralisation encountered. These extensions will be in-fill drilled
over the upcoming winter season.
Confirmation drilling on the Suhanko North prospect, located adjacent
to Tuumasuo, was also completed with visual encouragement in four
drillholes. Assays are pending but zones of sulphide mineralisation
up to 89 metres thick were intersected down-dip from previous
shallow drilling.
Extensional drilling at Little Suhanko commenced towards the end of
the quarter to determine the potential size of this shallow deposit
which is located 400 metres east of the Ahmavaara deposit. Eight
holes were completed for 672 metres, and confirmed near surface
extensions to the south and east of previous drilling. The drilling
programme is expected to be completed in the December 2011
quarter.
Damang super-pit
The conceptual study of the super-pit identified an exploration target
of between 3 to 4 million ounces based on a tonnage of 50 million to
80 million tonnes, at grades of 1.6 grams per tonne to 1.8 grams per
tonne. Drilling has demonstrated continuity of mineralisation to
depths of over 350 metres below the current pit floor and consistent
in style with current mined ores. Evaluation of conceptual models,
based on extrapolation of grade control data, demonstrates potential
economic viability to depths of 400 metres below surface, capable of
supporting a significant expansion and extension to the life of the
mine.
The Phase 2 pre-feasibility drilling programme which commenced in
May 2011 is near completion. Over 37,000 metres of a planned
44,000 metre programme of RC and diamond core drilling has been
completed, which will inform a resource model suitable for the on-
going study. A geological model will be constructed and declaration
of an updated resource is expected by mid-2012.
Metallurgical, geotechnical, and environmental testwork is running in
parallel with engineering and design activities. Work on permit
applications has started.
Greenfields exploration
In addition to the four resource development projects mentioned
above, the greenfields exploration portfolio also consists of two
advanced drilling projects, six initial drilling projects and nine target
definition projects in Peru, Chile, Ghana, Mali, Guinea, Canada,
Kyrgyzstan and Australia.
Africa
A scoping study was completed for the Yanfolila project in southern
Mali (Gold Fields 85 per cent) which indicates the project requires a
minimum 1.5 million ounces resource base to meet internal
investment criteria. Exploration drilling recommenced in the
December quarter at the end of the high rainfall season. Drilling will
focus on expanding the resource base, targeting the mineral potential
already identified at six additional prospect areas within 25 kilometres
of the central Komana camp. An additional 60,000 metres of scoping
and in-fill RC and core drilling is planned. A further 30,000 metres of
aircore drilling is also planned to delineate anomalies identified during
geochemical surveys completed during the 2011 field season.
First pass diamond and RC drilling was completed on the Tinguélé
prospect at the Kangaré project (Gold Fields 90 per cent) in Mali.
Drill testing of an extensive geochemical anomaly intersected broad
intervals of low level mineralisation in the three drill holes completed.
Follow-up drilling is planned for the approaching drill season.
At the Asheba project in Ghana (Gold Fields 90 per cent) assays
were received from initial drilling completed in early 2011, which
confirmed mineralisation in two prospect areas. Conceptual
modelling demonstrated sufficient mineral potential to justify further
follow-up drilling which is scheduled for completion by June 2012. An
auger drilling programme to explore below transported cover
commenced late in the quarter and aims to identify extensions to the
known mineralised trends.
11 I GOLD FIELDS RESULTS
North America
In British Columbia, Canada, Gold Fields can earn up to a 70 per
cent interest in the Woodjam project with joint venture partners
Fjordland Exploration Inc. (TSX.V:“FEX”) and Cariboo Rose
Resources (TSX.V:“CRB”). Resource in-fill drilling of the Southeast
zone porphyry copper-gold-molybdenum target was completed during
the quarter, and conceptual studies progressed. A total of 42 holes
for 17,195 metres of core were completed, which will contribute to a
maiden SAMREC compliant resource to be finalised by March 2012.
In-fill and reconnaissance drilling was also completed on the
Deerhorn, Megabuck and Tisdall Lake prospects respectively.
A first pass 7-hole, 2,448 metre diamond drilling programme was
completed at the Toodoggone project in British Columbia, Canada
where Gold Fields can earn up to 75 per cent in a joint venture with
Cascadero Copper Corporation (TSX.V:“CCD”). The drilling
programme tested the Mex copper-gold target and successfully
intersected porphyry related copper-gold mineralisation.
A 5-hole, 1,706 metre diamond drilling programme was completed on
the new Eldorado property, British Columbia, Canada. Four of the
five holes intersected variable widths of quartz-carbonate brecciation
with local sulphides within altered quartz diorite. Assay results are
expected later this year.
South America
Diamond drilling commenced at the Pacosani Target, Moquegua
project, Peru and RC drilling commenced at the Ichocollo target in the
Tacna project, Peru.
Preparation is underway to commence diamond drilling at the Salares
Norte project in the Maricunga district of Chile in the December 2011
quarter, following-up on drilling completed earlier this year.
Australasia
Minimal drilling activity was completed in Australia due to seasonal
rainfall and agricultural restrictions. Preparation for the approaching
summer drill season is complete and more than 20,000 metres of
drilling is planned on the East Lachlan gold-copper porphyry
prospects.
Other regions
At the Talas project in Kyrgyzstan (Gold Fields 60 per cent in a joint
venture with Orsu Metals Corp, AIM:OSU, TSX:OSU), minor field
activities completed include initial low-level soil sampling on new
target areas (MMI), and detailed ground magnetic surveys to aid
future drill targeting.
Further activity remains on hold following an attack by about ten
horsemen on the exploration camp as reported early in October. A
criminal investigation is underway.
Project generation and near mine exploration
St Ives
Recent activity at St Ives focused on completing resource model
updates for the combined deposits in the Neptune and Revenge
areas which have historically produced in excess of 2 million ounces
of gold. More than 25,000 metres of drilling was completed on this
complex of deposits during 2011 and work on geological and
resource modelling is being completed.
Additional resource development drilling programmes totalling in
excess of 25,000 metres were also completed at Greater Santa Ana,
Cave Rocks and the Leviathan area. Drilling has targeted potentially
economic extensions to the established mining centres.
Early-stage target definition and initial drilling activities totalling
24,700 metres were completed on a number of high ranking
prospects across the St Ives tenement. Of significance is a series of
high grade aircore intersections returned from the Incredible
prospect. A drilling programme designed to extend the existing
1.5 kilometre long Incredible pit’s gold anomaly laterally to the west is
underway.
Agnew
A programme of 14,500 metres of directional diamond core drilling to
prove geological and grade continuity on three newly defined high-
grade shoots in the Main Lode-Kim corridor commenced in July 2011.
Initial indications confirm the presence of three steep-plunging high
grade lode structures. Drilling will continue into the December
quarter so that an initial inferred resource can be completed before
committing to the next stage of drilling.
Positive optimisation of the Cinderella resource suggests a potentially
economic open pit position. A 50-hole programme of RC drilling is
planned to be completed in the December quarter in order to
evaluate the short range variability in the deposit and allow the
construction of a final indicated resource.
Damang
Following almost twelve months of dedicated and intensive activity on
the Damang super-pit, drilling returned to target the potential
extension of the deposits in the Greater Amoanda area. Detailed
geological studies completed during the quarter highlighted that
significant extensional opportunity exists at both the Rex and
Amoanda deposits.
On the eastern flank of the Damang anticline, a reconnaissance drill
programme of 31 holes (3,100 metres diamond core) is planned at
the Bonsa forest hydrothermal prospect, targeting both structural
hydrothermal mineralisation and potential conglomerate reef
positions.
Cerro Corona
All results from the phase 2 in-pit extensional drill programme have
now been received and essentially confirm the gold and copper
distribution to be consistent with the December 2010 model.
Localised higher grade zones are also evident, which have potential
to provide short-term production grade increases over the life of
mine.
Significantly, the phase 2 drilling also identified a number of
intersections outside the planned pit designs, particularly at depth. A
programme of deeper drilling is planned in 2012 to scope out the
potential for resource expansion opportunities below and lateral to
the current pit limits.
A 12-hole programme at Sylvita on the northern flank of the Cerro
Corona porphyry was completed and logged. Intervals of altered
porphyry, along with skarn mineralisation containing visible copper
and zinc sulphides were intersected. All assay results are pending.
Business development
Gold Fields entered into an option agreement with Bezant Resources
PLC (Bezant) to acquire the entire issued share capital of Asean
Copper Investments Limited which is incorporated in the British Virgin
Islands, a wholly owned subsidiary of Bezant. Asean holds Bezant’s
entire interest in the Guinaoang porphyry copper-gold deposit (the
Mankayan project) located on Luzon Island in the Philippines.
Subject to approval from Bezant’s shareholders and the payment of
an upfront non-refundable option fee of US$7 million, Gold Fields will
be granted the option to acquire the entire issued share capital of
Asean for US$63 million. The option can be exercised from the date
upon which it is granted until expiry on 31 January 2013. The
Mankayan project is located approximately 4 kilometres east of the
FSE deposit.
GOLD FIELDS RESULTS I 12
Corporate
Registration of Beatrix’s carbon project
Gold Fields is leading the mining industry in reducing climate change
with its innovative carbon credit project at its Beatrix mine in Welkom,
in the Free State. On 7 September 2011, this project reached a
major milestone with its registration as a South African Clean
Development Mechanism (CDM) project at the United Nations
Framework Convention on Climate Change (UNFCCC).
The project not only reduces carbon emissions and significantly
increases safety but will also generate an alternative source of clean
energy. It is expected that the carbon emissions at the operation will
be reduced from the 2010 base by 1.7 million tonnes of carbon
dioxide (CO
2
) during the period 2011 to 2018. Methane gas is
captured at its source and piped to surface where it is either flared or
used to generate electricity. This is the first time that this type of
project has been implemented in South Africa.
Although gold mines are generally not viewed as big carbon emitters,
the situation is different in South Africa because deep level mines are
hot and energy intensive. This project is therefore an important
contribution to the reduction of carbon emissions and was awarded
the European Energy Risk Deal of the Year award in 2010.
Option agreement in the Philippines
In terms of the option agreements to acquire a 60 per cent interest in
the undeveloped gold-copper Far Southeast (FSE) deposit in the
Philippines, the second down-payment of US$66 million was made
on 21 September 2011. The option agreements were entered into
with Lepanto Consolidated Mining Company (Lepanto), a company
listed in the Philippines, and Liberty Express Assets, a private holding
company.
The non-refundable down-payment of US$66 million to Liberty is the
second in a series of three payments. The first payment of US$54
million was paid with the signing of the option agreement on 20
September 2010. To finalise the acquisition of the 60 per cent
interest in FSE, a final payment of US$220 million will be required to
be paid in the first half of 2012. The total pre-agreed acquisition price
for a 60 per cent interest in FSE, inclusive of all of the above
payments, is US$340 million.
Moody's changes Gold Fields Baa3 credit rating outlook
to positive from stable
According to Moody’s Investor Services (Moody’s) a change in
outlook was mainly prompted by Gold Fields’ continued progress in
terms of further diversifying its production and EBITDA
geographically and becoming less dependent on South Africa.
Combined with this view was the increased expectation that the
company would also be able to maintain its conservative leverage of
Net Debt to EBITDA ratio below one and maintain a positive free
cash flow generation, even in a much lower gold price environment.
Gold Fields has also maintained an investment grade credit rating of
BBB- (Stable outlook) from Standard & Poor’s Ratings Services
(S&P).
Changes to the executive
Peet van Schalkwyk has been appointed as Executive Vice President
(EVP) and Head of Operations for West Africa, replacing Peter
Turner who took up the position of EVP, South Africa region during
August.
Peet returns to Gold Fields after working as General Manager of
Alamos Gold Incorporated in Turkey for the past eighteen months.
Prior to this he was General Manager at both Tarkwa and Damang in
Ghana. Peet also worked in Mali as metallurgical manager for five
years. His wealth of experience and knowledge of the operations and
mineral deposits in the region will contribute to the success and
growth of our footprint in West Africa.
Awards and achievements
Gold Fields was placed first among the top 300 companies operating
in the BRICS (Brazil, Russia, India, China, South Africa) countries in
the Environmental Tracking (ET) Carbon Rankings, which ranks
companies in terms of their disclosure of greenhouse gas emissions.
Gold Fields was ranked third in the Global top 800 companies table.
The ET Carbon Rankings are compiled by the Environmental
Investment Organisation (EIO), an independent not-for-profit
research body focusing on economic and financial innovation to
reduce global corporate greenhouse gas emissions.
Gold Fields was also the joint winner (with Nedbank) in Ernst &
Young’s Excellence in Corporate Reporting awards for 2011. The
results were based on the latest annual reports of the top 100 JSE
Limited listed companies.
Gold Fields was the top resources company and placed fourth overall
in the Financial Mail Nkonki Group inaugural Integrated Annual
Report awards among the JSE Limited Top 40 companies.
Based on the annual report for the six month period ended 31
December 2010, Gold Fields improved its rating on the Dow Jones
Sustainability Index by 6 percentage points to 81 per cent.
Outlook
The production guidance for the year ending December 2011
remains unchanged despite the recent wage-related industrial action
and higher than expected safety-related stoppages which disrupted
the South African operations. Equivalent gold production is estimated
at 3.5 million attributable ounces, which is in the range previously
provided.
Total cash cost is estimated at US$810 per ounce (R187,000 per
kilogram) and the NCE US$1,200 per ounce (R277,000 per kilogram)
for financial 2011. Cash cost is slightly higher than the previous
estimate due to an increase in royalties driven by the higher gold
price. NCE per ounce is in line with previous guidance. This estimate
is based on an average exchange rate of R/US$7.18 and
US$/A$1.04 for the year.
The above is subject to an improved safety performance limiting the
impact of safety-related stoppages and the forward looking statement
on pages 1 and 27.
Basis of accounting
The unaudited condensed consolidated financial information is
prepared in accordance with IAS 34 Interim Financial Reporting and
South African Statements and Interpretations of Statements of
Generally Accepted Accounting Practice (AC 500 series).
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
10 November 2011
13 I GOLD FIELDS RESULTS
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
Nine months to
SOUTH AFRICAN RAND
September
2011
June
2011
September
2010
September
2011
September
2010
Revenue
11,059.5
9,581.0 9,052.8
29,609.9
25,135.4
Operating costs, net
(5,404.1)
(5,124.2) (5,132.0)
(15,406.7)
(14,906.5)
- Operating costs
(5,450.4)
(5,250.7) (5,173.4)
(15,660.1)
(15,034.2)
- Gold inventory change
46.3
126.5 41.4
253.4
127.7
Operating profit
5,655.4
4,456.8 3,920.8
14,203.2
10,228.9
Amortisation and depreciation
(1,377.4)
(1,277.2) (1,442.5) (3,894.6)
(3,950.0)
Net operating profit
4,278.0
3,179.6 2,478.3
10,308.6
6,278.9
Net interest paid
(69.0)
(31.5) (69.6)
(141.4)
(147.7)
Share of gain/(loss) of associates after taxation
5.0
0.8 (217.6)
2.3
(127.3)
Gain/(loss) on foreign exchange
72.2
(19.0) (11.1) 56.2
(20.7)
(Loss)/gain on financial instruments
(0.3)
24.6 (2.6) 30.7
(8.5)
Share-based payments
(121.6)
(122.5) (119.0) (366.1)
(286.0)
Other
(74.3)
(84.8) (23.7)
(235.2)
(240.0)
Exploration
(188.5)
(213.5) (123.5) (540.5)
(435.9)
Feasibility and evaluation costs
(48.0)
(17.2) -
(92.5)
-
Profit before royalties, taxation and non-recurring items
3,853.5
2,716.5 1,911.2 9,022.1
5,012.8
Non-recurring items
(167.2)
(100.6) (138.3) (350.4)
(260.1)
Profit before royalties and taxation
3,686.3
2,615.9 1,772.9 8,671.7
4,752.7
Royalties
(304.5)
(236.4) (217.5) (705.5)
(555.5)
Profit before taxation
3,381.8
2,379.5 1,555.4 7,966.2
4,197.2
Mining and income taxation
(1,222.8)
(866.3) (631.5)
(2,869.1)
(1,705.2)
- Normal
taxation
(841.0)
(520.7) (459.2)
(1,961.5)
(954.2)
- Deferred
taxation
(381.8)
(345.6) (172.3) (907.6)
(751.0)
Net profit
2,159.0
1,513.2 923.9
5,097.1
2,492.0
Attributable to:
- Owners of the parent
2,054.6
1,266.8 700.9
4,421.8
1,916.5
- Non-controlling interest
104.4
246.4 223.0 675.3
575.5
Non-recurring items:
Profit on sale of investments
-
- 1.0
-
89.2
Profit/(loss) on sale of assets
0.4
(2.4) 2.7
(3.3)
4.1
Restructuring costs
(167.4)
(63.0) (142.0) (315.0)
(155.5)
Impairment of investments
(0.2)
(1.2) -
(1.4)
(197.9)
Other
-
(34.0) -
(30.7)
-
Total non-recurring items
(167.2)
(100.6) (138.3) (350.4)
(260.1)
Taxation
55.0
30.1 50.0
111.0
43.3
Net non-recurring items after taxation
(112.2)
(70.5) (88.3)
(239.4)
(216.8)
Net earnings
2,054.6
1,266.8 700.9
4,421.8
1,916.5
Net earnings per share (cents)
284
175 99
612
271
Diluted earnings per share (cents)
280
174 98
605
267
Headline earnings
2,054.4
1,270.1 698.5
4,425.9
2,029.6
Headline earnings per share (cents)
284
176 99
613
287
Diluted headline earnings per share (cents)
281
174 98
606
284
Net earnings excluding gains and losses on foreign exchange, financial
instruments, non-recurring items and share of gain/(loss) of associates after
royalties and taxation
2,111.4
1,326.4 1,016.3 4,589.5
2,281.8
Net earnings per share excluding gains and losses on foreign exchange,
financial instruments, non-recurring items and share of gain/(loss) of
associates after royalties and taxation (cents)
291
184 144 635
323
Gold sold – managed
kg
28,675
29,371 31,289 86,821
89,317
Gold price received
R/kg
385,684
326,206 289,329 341,045
281,418
Total cash cost
R/kg
192,997
177,934 164,898 179,768
166,772
GOLD FIELDS RESULTS I 14
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
Nine months to
UNITED STATES DOLLARS
September
2011
June
2011
September
2010
September
2011
September
2010
Revenue
1,570.3
1,411.3 1,230.0 4,266.6
3,370.4
Operating costs, net
(766.1)
(754.9) (697.3)
(2,220.0)
(1,998.0)
- Operating costs
(772.5)
(773.5) (702.9)
(2,256.5)
(2,015.1)
- Gold inventory change
6.4
18.6 5.6
36.5
17.1
Operating profit
804.2
656.4 532.7
2,046.6
1,372.4
Amortisation and depreciation
(195.3)
(188.2) (196.0) (561.2)
(529.7)
Net operating profit
608.9
468.2 336.7
1,485.4
842.7
Net interest paid
(9.9)
(4.6) (9.5)
(20.4)
(19.8)
Share of gain/(loss) of associates after taxation
0.7
0.1 (29.6)
0.3
(17.7)
Gain/(loss) on foreign exchange
10.4
(2.7) (1.5) 8.1
(2.8)
(Loss)/gain on financial instruments
(0.1)
3.6 (0.4) 4.4
(1.4)
Share-based payments
(17.3)
(18.0) (16.2) (52.8)
(38.6)
Other
(10.5)
(12.8) (3.1)
(33.9)
(31.7)
Exploration
(26.7)
(31.3) (16.7) (77.9)
(58.3)
Feasibility and evaluation costs
(6.8)
(2.6) -
(13.3)
-
Profit before royalties, taxation and non-recurring items
548.7
399.9 259.7
1,299.9
672.4
Non-recurring items
(23.9)
(14.8) (18.8) (50.5)
(33.5)
Profit before royalties and taxation
524.8
385.1 240.9
1,249.4
638.9
Royalties
(43.4)
(34.7) (29.6)
(101.7)
(74.4)
Profit before taxation
481.4
350.4 211.3
1,147.7
564.5
Mining and income taxation
(174.1)
(127.6) (85.8)
(413.4)
(229.0)
- Normal taxation
(119.7)
(77.0) (62.4)
(282.6)
(128.6)
- Deferred taxation
(54.4)
(50.6) (23.4)
(130.8)
(100.4)
Net profit
307.3
222.8 125.5 734.3
335.5
Attributable to:
- Owners of the parents
293.0
186.3 95.2
637.0
258.4
- Non-controlling interest
14.3
36.5 30.3 97.3
77.1
Non-recurring items:
Profit on sale of investments
-
- 0.1
-
12.7
(Loss)/profit on sale of assets
-
(0.3) 0.4
(0.5)
0.6
Restructuring costs
(23.9)
(9.4) (19.3) (45.4)
(21.1)
Gain on financial instruments
-
- - -
0.1
Driefontein 9 shaft closure cost
-
- - -
0.3
Impairment of investments
-
(0.2) -
(0.2)
(26.1)
Other
-
(4.9) -
(4.4)
-
Total non-recurring items
(23.9)
(14.8) (18.8) (50.5)
(33.5)
Taxation
7.9
4.4 6.8
16.0
5.7
Net non-recurring items after taxation
(16.0)
(10.4) (12.0) (34.5)
(27.8)
Net earnings
293.0
186.3 95.2
637.0
258.4
Net earnings per share (cents)
40
26 13 88
36
Diluted earnings per share (cents)
40
25 13 87
36
Headline earnings
293.0
186.7 94.8
637.6
272.5
Headline earnings per share (cents)
40
26 13 88
39
Diluted headline earnings per share (cents)
40
25 13 87
38
Net earnings excluding gains and losses on foreign exchange, financial
instruments, non-recurring items and share of gain/(loss) of associates after
royalties and taxation
301.1
195.2 138.1 661.3
307.0
Net earnings per share excluding gains and losses on foreign exchange,
financial instruments, non-recurring items and share of gain/(loss) of
associates after royalties and taxation (cents)
42
27 20 92
44
South African rand/United States dollar conversion rate
7.05
6.78 7.36 6.94
7.46
South African rand/Australian dollar conversion rate
7.44
7.18 6.59 7.21
6.67
Gold sold – managed
oz (000)
922
944 1,006 2,791
2,872
Gold price received
US$/oz
1,702
1,496 1,223 1,528
1,173
Total cash cost
US$/oz
851
816 697 806
695
15 I GOLD FIELDS RESULTS
Statement of comprehensive income
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
Nine months to
SOUTH AFRICAN RAND
September
2011
June
2011
September
2010
September
2011
September
2010
Net profit
2,159.0
1,513.2 923.9
5,097.1
2,492.0
Other comprehensive income/(expenses), net of tax
1,130.1
89.2 (620.0) 1,616.4
(1,005.7)
Marked to market valuation of listed investments
(1.5)
(23.7) 41.8 2.8
(72.8)
Currency translation adjustments and other
1,127.0
114.8 (671.4) 1,609.1
(946.3)
Share of equity investee’s other comprehensive income
0.1
- 7.0 0.1
4.5
Deferred taxation on marked to market valuation of listed investments
4.5
(1.9) 2.6 4.4
8.9
Total comprehensive income
3,289.1
1,602.4 303.9
6,713.5
1,486.3
Attributable to:
- Owners of the parent
3,185.1
1,355.5 82.5
6,037.8
913.7
- Non-controlling interest
104.0
246.9 221.4 675.7
572.6
3,289.1
1,602.4 303.9
6,713.5
1,486.3
Statement of comprehensive income
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
Nine months to
UNITED STATES DOLLARS
September
2011
June
2011
September
2010
September
2011
September
2010
Net profit
307.3
222.8 125.5 734.3
335.5
Other comprehensive (expenses)/income, net of tax
(814.8)
53.8 376.8
(871.4)
383.4
Marked to market valuation of listed investments
(0.2)
(3.4) 5.7 0.4
(9.7)
Currency translation adjustments and other
(815.2)
57.5 369.7
(872.4)
391.1
Share of equity investee’s other comprehensive income
-
- 1.0
-
0.7
Deferred taxation on marked to market valuation of listed investments
0.6
(0.3) 0.4 0.6
1.3
Total comprehensive (loss)/income
(507.5)
276.6 502.3
(137.1)
718.9
Attributable to:
- Owners of the parent
(498.9)
233.3 442.4
(207.4)
608.8
- Non-controlling interest
(8.6)
43.3 59.9 70.3
110.1
(507.5)
276.6 502.3
(137.1)
718.9
Statement of financial position
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
UNITED STATES DOLLARS
September
2011
December
2010
September
2011
December
2010
Property, plant and equipment
60,586.9
53,249.8
7,479.9
7,888.9
Goodwill
4,458.9
4,458.9
550.5
660.6
Non-current assets
1,213.6
1,137.9
149.8
168.6
Investments
931.1
1,078.5
115.0
159.8
Deferred taxation
693.9
753.1
85.7
111.6
Current assets
12,309.9
11,136.1
1,519.7
1,649.8
- Other current assets
7,875.2
5,672.3
972.2
840.3
- Cash and deposits
4,434.7
5,463.8
547.5
809.5
Total assets
80,194.3
71,814.3
9,900.6
10,639.3
Shareholders’ equity
45,288.5
46,622.5
5,591.2
6,907.1
Deferred taxation
9,257.1
7,814.5
1,142.9
1,157.7
Long-term loans
11,156.9
7,671.9
1,377.4
1,136.6
Environmental rehabilitation provisions
2,589.2
2,271.2
319.7
336.5
Post-retirement health care provisions
18.1
18.0
2.2
2.7
Other long-term provisions
110.0
133.2
13.6
19.7
Current liabilities
11,774.5
7,283.0
1,453.6
1,079.0
- Other current liabilities
7,400.5
5,516.8
913.6
817.3
- Current portion of long-term loans
4,374.0
1,766.2
540.0
261.7
Total equity and liabilities
80,194.3
71,814.3
9,900.6
10,639.3
South African rand/US dollar conversion rate
8.10
6.75
South African rand/Australian dollar conversion rate
8.09
6.77
Net debt
11,096.2
3,974.3
1,369.9
588.8
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
Share capital
and premium
Other
reserves
Retained
earnings
Non-controlling
interest
Total
equity
Balance as at 31 December 2010
31,560.6
(38.3)
12,019.8
3,080.4
46,622.5
Total
comprehensive
income
- 1,616.0 4,421.8 675.7 6,713.5
Profit for the period
-
-
4,421.8
675.3
5,097.1
Other comprehensive income
-
1,616.0
-
0.4
1,616.4
Dividends paid
-
-
(1,229.4)
(154.2)
(1,383.6)
Share-based payments
-
366.1
-
-
366.1
Loans received from non-controlling interest
-
-
-
152.5
152.5
Purchase of non-controlling interest
-
-
(4,469.8)
(2,660.9)
(7,130.7)
Treasury
shares
(81.4) - - -
(81.4)
Exercise of employee share options
29.6
-
-
-
29.6
Balance as at 30 September 2011
31,508.8
1,943.8
10,742.4
1,093.5
45,288.5
UNITED STATES DOLLARS
Share capital
and premium
Other
reserves
Retained
earnings
Non-controlling
interest
Total
equity
Balance as at 31 December 2010
4,602.7
207.4
1,640.6
456.4
6,907.1
Total comprehensive (expenses)/income
-
(844.4)
637.0
70.3
(137.1)
Profit for the period
-
-
637.0
97.3
734.3
Other comprehensive expenses
-
(844.4)
-
(27.0)
(871.4)
Dividends paid
-
-
(174.9)
(22.2)
(197.1)
Share-based payments
-
52.8
-
-
52.8
Loans received from non-controlling interest
-
-
-
22.0
22.0
Purchase of non-controlling interest
-
-
(657.6)
(391.5)
(1,049.1)
Treasury shares
(11.7)
-
-
-
(11.7)
Exercise of employee share options
4.3
-
-
-
4.3
Balance as at 30 September 2011
4,595.3
(584.2)
1,445.1
135.0
5,591.2
SOUTH AFRICAN RAND
Share capital
and premium
Other
reserves
Retained
earnings
Non-controlling
interest
Total
equity
Balance as at 31 December 2009
31,503.5
(1,252.6)
11,727.9
2,746.4
44,725.2
Total comprehensive (expenses)/income
-
(1,002.8)
1,916.5
572.6
1,486.3
Profit for the period
-
-
1,916.5
575.5
2,492.0
Other comprehensive expenses
-
(1,002.8)
-
(2.9)
(1,005.7)
Dividends paid
-
-
(847.4)
(175.2)
(1,022.6)
Share-based payments
-
286.0
-
-
286.0
Loans repaid to non-controlling interest
-
-
-
(116.4)
(116.4)
Exercise of employee share options
34.7
-
-
-
34.7
Balance as at 30 September 2010
31,538.2
(1,969.4)
12,797.0
3,027.4
45,393.2
UNITED STATES DOLLARS
Share capital
and premium
Other
reserves
Retained
earnings
Non-controlling
interest
Total
equity
Balance as at 31 December 2009
4,594.8
(708.3)
1,600.9
359.0
5,846.4
Total comprehensive income
-
350.3
258.4
110.1
718.8
Profit for the period
-
-
258.4
77.1
335.5
Other comprehensive income
-
350.3
-
33.0
383.3
Dividends paid
-
-
(112.9)
(23.1)
(136.0)
Share-based payments
-
38.6
-
-
38.6
Loans repaid to non-controlling interest
-
-
-
(15.4)
(15.4)
Exercise of employee share options
4.6
-
-
-
4.6
Balance as at 30 September 2010
4,599.4
(319.4)
1,746.4
430.6
6,457.0
17 I GOLD FIELDS RESULTS
Statement of cash flows
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
Nine months to
SOUTH AFRICAN RAND
September
2011
June
2011
September
2010
September
2011
September
2010
Cash flows from operating activities
5,056.5
2,954.2 2,250.7
10,793.2
8,483.9
Profit before royalties, tax and non-recurring items
3,853.5
2,716.5 1,911.2 9,022.1
5,012.8
Non-recurring items
(167.2)
(100.6) (138.3) (350.4)
(260.1)
Amortisation and depreciation
1,377.4
1,277.2 1,442.5 3,894.6
3,950.0
South Deep BEE dividend paid
-
- -
(21.4)
-
Change in working capital
372.7
47.8 (753.2) 129.9
719.6
Royalties and taxation paid
(689.0)
(984.9) (623.3)
(2,335.9)
(1,559.5)
Other non-cash items
309.1
(1.8) 411.8 454.3
621.1
Dividends paid
(870.5)
(7.3) (494.4)
(1,442.2)
(1,022.6)
Owners of the parent
(723.6)
- (494.4)
(1,229.4)
(847.4)
Non-controlling interest holders
(146.9)
(7.3) -
(212.8)
(175.2)
Cash flows from investing activities
(3,161.1)
(8,029.7) (2,228.0)
(14,613.2)
(5,872.4)
Capital expenditure – additions
(2,607.4)
(2,285.0) (2,225.4) (6,961.0)
(6,254.1)
Capital expenditure – proceeds on disposal
0.6
8.2 28.7 17.5
31.9
Payment for FSE
(534.6)
- -
(534.6)
-
La Cima non-controlling interest buy-out
-
(1,242.6) -
(2,611.0)
-
Ghana non-controlling interest buy-out
-
(4,519.7) -
(4,519.7)
-
Purchase of investments
-
- (22.5) (0.7)
(73.4)
Proceeds on disposal of investments
13.3
12.0 1.0
36.8
512.8
Environmental and post-retirement health care payments
(33.0)
(2.6) (9.8)
(40.5)
(89.6)
Cash flows from financing activities
(1,431.3)
2,795.2 1,188.8 3,641.7
1,100.7
Loans received
400.0
3,927.3 4,013.1 7,499.1
9,119.2
Loans repaid
(1,905.2)
(1,184.6) (2,840.1) (4,039.5)
(7,936.8)
Non-controlling interest holders’ loans repaid
-
- - -
(116.4)
Non-controlling interest holders’ loans received
64.0
46.6 -
152.5
-
Shares issued
9.9
5.9 15.8 29.6
34.7
Net cash (outflow)/inflow
(406.4)
(2,287.6) 717.1
(1,620.5)
2,689.6
Translation adjustment
496.1
29.4 (194.4) 591.4
(204.6)
Cash at beginning of period
4,345.0
6,603.2 3,790.5 5,463.8
1,828.2
Cash at end of period
4,434.7
4,345.0 4,313.2 4,434.7
4,313.2
Cash flow from operating activities less capital expenditure – additions
2,449.1
669.2 25.3
3,832.2
2,229.8
Quarter
Nine months to
UNITED STATES DOLLARS
September
2011
June
2011
September
2010
September
2011
September
2010
Cash flows from operating activities
716.5
435.5 308.0
1,549.6
1,134.9
Profit before royalties, tax and non-recurring items
548.7
399.9 259.7
1,299.9
672.4
Non-recurring items
(23.9)
(14.8) (18.8) (50.5)
(33.5)
Amortisation and depreciation
195.3
188.2 196.0 561.2
529.7
South Deep BEE dividend paid
-
- -
(3.1)
-
Change in working capital
54.0
6.3 (102.3)
18.7
90.2
Royalties and taxation paid
(102.0)
(144.1) (82.6)
(342.1)
(206.5)
Other non-cash items
44.4
- 56.0 65.5
82.6
Dividends paid
(122.8)
(1.1) (67.4)
(205.8)
(136.0)
Owners of the parent
(101.7)
- (67.4)
(174.9)
(112.9)
Non-controlling interest holders
(21.1)
(1.1) -
(30.9)
(23.1)
Cash flows from investing activities
(439.0)
(1,185.1) (302.8)
(2,116.2)
(776.6)
Capital expenditure – additions
(370.2)
(336.4) (302.4)
(1,003.0)
(838.4)
Capital expenditure – proceeds on disposal
-
1.3 3.9 2.5
4.3
Payment for FSE
(66.0)
- -
(66.0)
-
La Cima non-controlling interest buy-out
-
(184.4) -
(382.1)
-
Ghana non-controlling interest buy-out
-
(667.0) -
(667.0)
-
Purchase of investments
-
- (3.1) (0.1)
(10.0)
Proceeds on disposal of investments
1.9
1.8 0.1 5.3
79.4
Environmental and post-retirement health care payments
(4.7)
(0.4) (1.3) (5.8)
(11.9)
Cash flows from financing activities
(184.5)
403.9 169.4 549.6
158.9
Loans received
56.7
570.0 557.4
1,084.9
1,235.2
Loans repaid
(251.7)
(173.8) (390.1) (561.6)
(1,065.5)
Non-controlling interest holders’ loans repaid
-
- - -
(15.4)
Non-controlling interest holders’ loans received
9.1
6.8 -
22.0
-
Shares issued
1.4
0.9 2 .1 4.3
4.6
Net cash (outflow)/inflow
(29.8)
(346.8) 107.2
(222.8)
381.2
Translation adjustment
(53.3)
23. 2 5.6
(39.2)
(6.7)
Cash at beginning of period
630.6
954.2 500.7 809.5
239.0
Cash at end of period
547.5
630.6 613.5 547.5
613.5
Cash flow from operating activities less capital expenditure – additions
346.3
99.1
5.6
546.6
296.5
GOLD FIELDS RESULTS I 18
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
Quarter
Quarter
September
2011
June
2011
September
2010
September
2011
June
2011
September
2010
Net earnings
2,054.6
1,266.8 700.9 293.0
186.3 95.2
Profit on sale of investments
-
- (1.0)
-
- (0.1)
Taxation effect on sale of investments
-
- 0.3
-
- -
Loss/(profit) on sale of assets
(0.4)
2.4 (2.7)
-
0.3 (0.4)
Taxation effect on sale of assets
-
(0.3) 1.0
-
(0.1) 0.1
Impairment of investments
0.2
1.2 - -
0.2 -
Headline earnings
2,054.4
1,270.1 698.5 293.0
186.7 94.8
Headline earnings per share – cents
284
176 99 40
26 13
Based on headline earnings as given above divided by
723,159,600 (June 2011 – 721,981,479 and September 2010 –
706,090,891) being the weighted average number of ordinary
shares in issue.
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*
Outstanding at the end of September 2011 was the following contract:
· CAD/ZAR – CAD0.4 million in total, with a zero marked to market value.
* Do not qualify for hedge accounting and will be accounted for as derivative financial instruments in the income statement.
Debt maturity ladder
Figures are in millions unless otherwise stated
31 Dec 2011
31 Dec 2012
31 Dec 2013
1 Jan 2014
to
31 Dec 2020
Total
Committed loan facilities (including US$ bond and preference shares)
Rand million
-
1,000.0
500.0
1,500.0
3,000.0
US dollar million
10.0
557.0
48.0
2,092.4
2,707.4
Dollar debt translated to rand
81.0
4,511.7
388.8
16,948.5
21,930.0
Total (R’m)
81.0
5,511.7
888.8
18,448.5
24,930.0
Utilisation – Committed loan facilities (including US$ bond and preference shares)
Rand million
-
-
-
-
-
US dollar million
10.0
540.0
40.0
1,327.4
1,917.4
Dollar debt translated to rand
81.0
4,374.0
324.0
10,751.9
15,530.9
Total (R’m)
81.0
4,374.0
324.0
10,751.9
15,530.9
Long-term loans per balance sheet (R’m)
11,156.9
Current portion of long-term loans per balance sheet (R’m)
4,374.0
Total loans per balance sheet (R’m)
15,530.9
Exchange rate: US$1 = R8.10 being the closing rate at the end of the September 2011 quarter.
19 I GOLD FIELDS RESULTS
Operating and financial results
SOUTH AFRICAN RAND
South Africa Region
Total
Mine
Operations
Total
KDC
Beatrix
South
Deep
Operating Results
Ore milled/treated (000 tonnes)
September 2011
14,770
4,327
2,805 899 623
June 2011
15,187
4,408 2,648 1,070 690
Year to date
44,415
12,755 7,987 2,877 1,891
Yield (grams per tonne)
September 2011
1.9
3.1 3.1 2.9 3.2
June 2011
1.9
3.2 3.2 2.8 3.4
Year to date
2.0
3.1 3.2 2.8 3.5
Gold produced (kilograms)
September 2011
28,781
13,323 8,684 2,636 2,003
June 2011
29,357
13,889 8,475 3,048 2,366
Year to date
86,784
39,996
25,328 7,998 6,670
Gold sold (kilograms)
September 2011
28,675
13,323 8,684 2,636 2,003
June 2011
29,371
13,889 8,475 3,048 2,366
Year to date
86,821
39,996
25,328 7,998 6,670
Gold price received (Rand per kilogram)
September 2011
385,684
392,584 389,717 400,493 394,608
June 2011
326,206
328,778 327,740 331,398 329,121
Year to date
341,045
344,692 343,845 348,725 343,073
Total cash cost (Rand per kilogram)
September 2011
192,997
235,780 227,395 236,002 271,842
June 2011
177,934
220,261 225,133 203,871 223,922
Year to date
179,768
223,352 220,033 222,718 236,717
Notional cash expenditure (Rand per kilogram)
September 2011
273,979
330,023 295,164 300,228 520,369
June 2011
251,790
305,501 290,289 255,118 424,894
Year to date
255,824
310,471 283,591 283,021 445,457
Operating costs (Rand per tonne)
September 2011
369
724 696 699 883
June 2011
346
697 723 584 773
Year to date
353
705 700 627 844
Financial Results (Rand million)
Revenue
September 2011
11,059.5
5,230.4 3,384.3 1,055.7 790.4
June 2011
9,581.0
4,566.4 2,777.6 1,010.1 778.7
Year to date
29,609.9
13,786.3 8,708.9 2,789.1 2,288.3
Net operating costs
September 2011
(5,404.1)
(3,131.1)
(1,952.4) (628.3) (550.4)
June 2011
(5,124.2)
(3,074.0)
(1,915.4) (625.2) (533.4)
Year to date
(15,406.7)
(8,987.8) (5,588.7) (1,802.9) (1,596.2)
- Operating costs
September 2011
(5,450.4)
(3,131.1)
(1,952.4) (628.3) (550.4)
June 2011
(5,250.7)
(3,074.0)
(1,915.4) (625.2) (533.4)
Year to date
(15,660.1)
(8,987.8) (5,588.7) (1,802.9) (1,596.2)
- Gold inventory change
September 2011
46.3
- - - -
June 2011
126.5
- - - -
Year to date
253.4
- - - -
Operating profit
September 2011
5,655.4
2,099.3
1,431.9 427.4 240.0
June 2011
4,456.8
1,492.4 862.2 384.9 245.3
Year to date
14,203.2
4,798.5
3,120.2 986.2 692.1
Amortisation of mining assets
September 2011
(1,339.6)
(679.8) (410.1) (127.4) (142.3)
June 2011
(1,241.0)
(665.9) (401.1) (139.0) (125.8)
Year to date
(3,783.8)
(1,994.6)
(1,224.2) (364.0) (406.4)
Net operating profit
September 2011
4,315.8
1,419.5 1,021.8 300.0
97.7
June 2011
3,215.8
826.5 461.1 245.9 119.5
Year to date
10,419.4
2,803.9
1,896.0 622.2 285.7
Other expenses
September 2011
(175.4)
(67.9) (37.9) (11.5) (18.5)
June 2011
(157.5)
(69.2) (42.2) (10.9) (16.1)
Year to date
(459.2)
(199.0)
(117.6) (33.1) (48.3)
Profit before royalties and taxation
September 2011
4,140.4
1,351.6 983.9 288.5 79.2
June 2011
3,058.3
757.3 418.9 235.0 103.4
Year to date
9,960.2
2,604.9
1,778.4 589.1 237.4
Royalties, mining and income taxation
September 2011
(1,525.2)
(459.8) (323.7) (103.6) (32.5)
June 2011
(1,043.5)
(240.2)
(114.5) (86.8) (38.9)
Year to date
(3,483.5)
(887.4) (575.5) (215.1) (96.8)
- Normal taxation
September 2011
(825.4)
(169.6) (169.2)
(0.4)
-
June 2011
(447.5)
(2.6)
(2.6) - -
Year to date
(1,846.0)
(216.8) (215.7)
(1.1)
-
- Royalties
September 2011
(304.7)
(80.7)
(71.5) (5.3) (3.9)
June 2011
(236.4)
(42.3)
(33.3) (5.1) (3.9)
Year to date
(705.7)
(158.3)
(132.9) (14.0) (11.4)
- Deferred taxation
September 2011
(395.1)
(209.5) (83.0) (97.9) (28.6)
June 2011
(359.6)
(195.3) (78.6) (81.7) (35.0)
Year to date
(931.8)
(512.3) (226.9) (200.0) (85.4)
Profit before non-recurring items
September 2011
2,615.2
891.8 660.2 184.9 46.7
June 2011
2,014.8
517.1 304.4 148.2 64.5
Year to date
6,476.7
1,717.5
1,202.9 374.0 140.6
Non-recurring items
September 2011
(128.4)
(111.3) (90.7
) (12.0) (8.6)
June 2011
(99.5)
(41.0) (23.9) (6.0) (11.1)
Year to date
(309.7)
(193.9)
(133.4) (30.2) (30.3)
Net profit
September 2011
2,486.8
780.5 569.5 172.9 38.1
June 2011
1,915.3
476.1 280.5 142.2 53.4
Year to date
6,167.0
1,523.6
1,069.5 343.8 110.3
Net profit excluding gains and losses on foreign
exchange, financial instruments and non-recurring
items
September 2011
2,581.2
852.4 628.4 180.6 43.4
June 2011
2,001.3
502.4 296.0 146.1 60.3
Year to date
6,408.2
1,648.7
1,156.2 363.4 129.1
Capital Expenditure
September 2011
(2,435.0)
(1,265.8)
(610.8) (163.1)
(491.9)
June 2011
(2,141.1)
(1,169.1) (544.8) (152.4) (471.9)
Year to date
(6,541.3)
(3,429.8) (1,594.1) (460.7) (1,375.0)
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 2011
6,825 5,597 1,228
1,674
1,944
1,682 262
June 2011
7,155 5,883 1,272
1,717
1,907
1,676 231
Year to date
21,033 17,283 3,750
4,973
5,654
4,977 677
Yield (grams per tonne)
September 2011
1.1 1.0 1.4
1.7
2.7
2.1 6.4
June 2011
1.0 1.0 1.4
1.8
2.6
2.0 6.8
Year to date
1.1 1.0 1.4
1.9
2.7
2.2 6.5
Gold produced (kilograms)
September 2011
7,290 5,600 1,690
2,921
5,247
3,577 1,670
June 2011
7,377 5,625 1,752
3,143
4,948
3,379 1,569
Year to date
22,241 17,012 5,229
9,426
15,121
10,703 4,418
Gold sold (kilograms)
September 2011
7,290 5,600 1,690
2,815
5,247
3,577 1,670
June 2011
7,377 5,625 1,752
3,157
4,948
3,379 1,569
Year to date
22,241 17,012 5,229
9,463
15,121
10,703 4,418
Gold price received (Rand per kilogram)
September 2011
387,915 387,732 388,521
335,737
391,862
388,762 398,503
June 2011
329,375 329,387 329,338
304,846
327,890
327,079 329,637
Year to date
342,026 342,053 341,939
316,707
345,189
342,558 351,562
Total cash cost (Rand per kilogram)
September 2011
139,767 137,446 147,456
111,865
201,849
221,638 159,461
June 2011
122,841 116,302 143,836
88,882
198,080
221,367 147,929
Year to date
126,361 119,157 149,799
94,959
196,111
211,716 158,307
Notional cash expenditure (Rand per kilogram)
September 2011
209,506 197,036 250,828
139,370
296,188
317,585 250,359
June 2011
193,019 193,689 190,868
114,604
275,788
298,935 225,940
Year to date
204,375 195,421 233,505
124,379
268,891
279,071 244,228
Operating costs (Rand per tonne)
September 2011
148 138 195
173
524
447 1,020
June 2011
134 125 174
148
506
438 996
Year to date
142 130 196
167
506
434 1,033
Financial Results (Rand million)
Revenue
September 2011
2,827.9 2,171.3 656.6
945.1
2,056.1
1,390.6 665.5
June 2011
2,429.8 1,852.8 577.0
962.4
1,622.4
1,105.2 517.2
Year to date
7,607.0 5,819.0 1,788.0
2,997.0
5,219.6
3,666.4 1,553.2
Net operating costs
September 2011
(931.1) (716.8) (214.3)
(289.1)
(1,052.8)
(791.2) (261.6)
June 2011
(825.0) (595.6) (229.4)
(258.3)
(966.9)
(740.2) (226.7)
Year to date
(2,606.9) (1,888.8) (718.1)
(852.4)
(2,959.6)
(2,267.0) (692.6)
- Operating costs
September 2011
(1,010.3) (771.4) (238.9)
(289.6)
(1,019.4)
(752.1) (267.3)
June 2011
(957.0) (735.5) (221.5)
(254.7)
(965.0)
(734.9) (230.1)
Year to date
(2,978.7) (2,242.6) (736.1)
(832.4)
(2,861.2)
(2,162.0) (699.2)
- Gold inventory change
September 2011
79.2 54.6 24.6
0.5
(33.4)
(39.1) 5.7
June 2011
132.0 139.9 (7.9)
(3.6)
(1.9)
(5.3) 3.4
Year to date
371.8 353.8 18.0
(20.0)
(98.4)
(105.0) 6.6
Operating profit
September 2011
1,896.8 1,454.5 442.3
656.0
1,003.3
599.4 403.9
June 2011
1,604.8 1,257.2 347.6
704.1
655.5
365.0 290.5
Year to date
5,000.1 3,930.2 1,069.9
2,144.6
2,260.0
1,399.4 860.6
Amortisation of mining assets
September 2011
(249.3) (188.8) (60.5)
(102.6)
(307.9)
June 2011
(211.8) (174.6) (37.2)
(102.7)
(260.6)
Year to date
(683.5) (544.0) (139.5)
(302.6)
(803.1)
Net operating profit
September 2011
1,647.5 1,265.7 381.8
553.4
695.4
June 2011
1,393.0 1,082.6 310.4
601.4
394.9
Year to date
4,316.6 3,386.2 930.4
1,842.0
1,456.9
Other expenses
September 2011
(39.6) (27.2) (12.4)
(49.9)
(18.0)
June 2011
(56.0) (39.6) (16.4)
(22.2)
(10.1)
Year to date
(126.5) (88.6) (37.9)
(95.5)
(38.2)
Profit before royalties and taxation
September 2011
1,607.9 1,238.5 369.4
503.5
677.4
June 2011
1,337.0 1,043.0 294.0
579.2
384.8
Year to date
4,190.1 3,297.6 892.5
1,746.5
1,418.7
Royalties, mining and income taxation
September 2011
(594.6) (464.5) (130.1)
(229.6)
(241.2)
June 2011
(458.6) (359.9) (98.7)
(202.9)
(141.8)
Year to date
(1,467.3) (1,159.6) (307.7)
(614.3)
(514.5)
- Normal taxation
September 2011
(428.4) (348.0) (80.4)
(227.4)
-
June 2011
(259.7) (209.4) (50.3)
(185.2)
-
Year to date
(1,008.3) (849.3) (159.0)
(620.9)
-
- Royalties
September 2011
(141.1) (108.3) (32.8)
(30.7)
(52.2)
June 2011
(122.1) (93.1) (29.0)
(30.4)
(41.6)
Year to date
(333.7) (255.3) (78.4)
(81.0)
(132.7)
- Deferred taxation
September 2011
(25.1) (8.2)
(16.9)
28.5
(189.0)
June 2011
(76.8) (57.4) (19.4)
12.7
(100.2)
Year to date
(125.3) (55.0) (70.3)
87.6
(381.8)
Profit before non-recurring items
September 2011
1,013.3 774.0 239.3
273.9
436.2
June 2011
878.4 683.1 195.3
376.3
243.0
Year to date
2,722.8 2 ,138.0 584.8
1,132.2
904.2
Non-recurring items
September 2011
(16.6) (4.3)
(12.3)
-
(0.5)
June 2011
(42.3) (8.5)
(33.8)
(0.2)
(16.0)
Year to date
(84.9) (36.7) (48.2)
(1.5)
(29.4)
Net profit
September 2011
996.7 769.7 227.0
273.9
435.7
June 2011
836.1 674.6 161.5
376.1
227.0
Year to date
2,637.9 2,101.3 536.6
1,130.7
874.8
Net profit excluding gains and losses on
foreign exchange, financial instruments
and non-recurring items
September 2011
1,011.8 775.1 236.7
277.3
439.7
June 2011
881.5 690.2 191.3
376.3
241.1
Year to date
2,719.3 2,139.3 580.0
1,135.2
905.0
Capital Expenditure
September 2011
(517.0) (332.0) (185.0)
(117.5)
(534.7) (383.9) (150.8)
June 2011
(466.9) (354.0) (112.9)
(105.5)
(399.6)
(275.2) (124.4)
Year to date
(1,566.8) (1,081.9) (484.9)
(340.0)
(1,204.7)
(824.9) (379.8)
#
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
South Africa Region
Total
Mine
Operations
Total
KDC
Beatrix
South
Deep
Operating Results
Ore milled/treated (000 tonnes)
September 2011
14,770
4,327
2,805 899
623
June 2011
15,187
4,408 2,648 1,070 690
Year to date
44,415
12,755 7,987 2,877 1,891
Yield (ounces per tonne)
September 2011
0.063
0.099
0.100 0.094
0.103
June 2011
0.062
0.101 0.103 0.092 0.110
Year to date
0.063
0.101 0.102 0.089 0.113
Gold produced (000 ounces)
September 2011
925.3
428.3
279.2 84.7
64.4
June 2011
943.8
446.5 272.5 98.0 76.1
Year to date
2,790.2
1,286.0 814.3 257.1 214.4
Gold sold (000 ounces)
September 2011
921.9
428.3
279.2 84.7
64.4
June 2011
944.3
446.5 272.5 98.0 76.1
Year to date
2,791.4
1,286.0 814.3 257.1 214.4
Gold price received (dollars per ounce)
September 2011
1,702
1,732
1,719 1,767
1,741
June 2011
1,496
1,508 1,504 1,520 1,510
Year to date
1,528
1,545 1,541 1,563 1,538
Total cash cost (dollars per ounce)
September 2011
851
1,040
1,003 1,041
1,199
June 2011
816
1,010 1,033 935 1,027
Year to date
806
1,001 986 998
1,061
Notional cash expenditure (dollars per ounce)
September 2011
1,209
1,456
1,302 1,325
2,296
June 2011
1,155
1,401 1,332 1,170 1,949
Year to date
1,147
1,391 1,271 1,268 1,996
Operating costs (dollars per tonne)
September 2011
52
103
99 99
125
June 2011
51
103 107 86 114
Year to date
51
102 101 90 122
Financial Results ($ million)
Revenue
September 2011
1,570.3
742.9
480.9 150.0
112.0
June 2011
1,411.3
672.0 409.0 148.3 114.7
Year to date
4,266.6
1,986.5 1,254.9 401.9 329.7
Net operating costs
September 2011
(766.1)
(443.8)
(276.7) (89.1)
(78.0)
June 2011
(754.9)
(452.6) (282.0) (92.0) (78.6)
Year to date
(2,220.0)
(1,295.1) (805.3) (259.8) (230.0)
- Operating costs
September 2011
(772.5)
(443.8)
(276.7) (89.1)
(78.0)
June 2011
(773.5)
(452.6) (282.0) (92.0) (78.6)
Year to date
(2,256.5)
(1,295.1) (805.3) (259.8) (230.0)
- Gold inventory change
September 2011
6.4
-
-
-
-
June 2011
18.6
- - - -
Year to date
36.5
- - - -
Operating profit
September 2011
804.2
299.1
204.2 60.9
34.0
June 2011
656.4
219.4 127.0 56.3 36.1
Year to date
2,046.6
691.4 449.6 142.1 99.7
Amortisation of mining assets
September 2011
(189.9)
(96.3)
(58.1) (18.0)
(20.2)
June 2011
(182.9)
(98.1) (59.2) (20.4) (18.6)
Year to date
(545.2)
(287.4) (176.4) (52.4) (58.6)
Net operating profit
September 2011
614.3
202.8
146.1 42.9
13.9
June 2011
473.5
121.3 67.9 35.9 17.5
Year to date
1,501.4
404.0 273.2 89.7 41.2
Other expenses
September 2011
(24.9)
(9.6)
(5.3) (1.7)
(2.6)
June 2011
(23.2)
(10.2) (6.2) (1.6) (2.4)
Year to date
(66.2)
(28.7) (16.9) (4.8) (7.0)
Profit before royalties and taxation
September 2011
589.4
193.2
140.8 41.2
11.3
June 2011
450.4
111.1 61.7 34.3 15.1
Year to date
1,435.2
375.3 256.3 84.9 34.2
Royalties, mining and income taxation
September 2011
(217.3)
(65.9)
(46.5) (14.8)
(4.5)
June 2011
(153.6)
(35.3) (16.9) (12.7) (5.7)
Year to date
(501.9)
(127.9) (82.9) (31.0) (13.9)
- Normal taxation
September 2011
(117.8)
(24.5)
(24.5) (0.1)
-
June 2011
(66.2)
(0.5) (0.5)
-
-
Year to date
(266.0)
(31.2) (31.1) (0.2)
-
- Royalties
September 2011
(43.4)
(11.5)
(10.2) (0.7)
(0.5)
June 2011
(34.7)
(6.2) (4.9) (0.7) (0.6)
Year to date
(101.7)
(22.8) (19.1) (2.0) (1.6)
- Deferred taxation
September 2011
(56.2)
(29.8)
(11.8) (14.0)
(4.0)
June 2011
(52.6)
(28.6) (11.6) (11.9) (5.1)
Year to date
(134.3)
(73.8) (32.7) (28.8) (12.3)
Profit before non-recurring items
September 2011
372.0
127.4
94.2 26.4
6.8
June 2011
296.8
75.8 44.7 21.6 9.4
Year to date
933.2
247.5 173.3 53.9 20.3
Non-recurring items
September 2011
(18.4)
(16.0)
(13.0) (1.8)
(1.3)
June 2011
(14.6)
(6.0) (3.5) (0.9) (1.6)
Year to date
(44.6)
(27.9) (19.2) (4.4) (4.4)
Net profit
September 2011
353.6
111.3
81.2 24.6
5.5
June 2011
282.2
69.8 41.2 20.7 7.8
Year to date
888.6
219.5 154.1 49.5 15.9
Net profit excluding gains and losses on foreign
exchange, financial instruments and non-recurring
items
September 2011
367.1
121.8
89.9 25.8
6.1
June 2011
294.7
73.6 43.5 21.3 8.8
Year to date
923.4
237.6 166.6 52.4 18.6
Capital Expenditure
September 2011
(345.8)
(179.7)
(86.8)
(23.1)
(69.8)
June 2011
(315.3)
(172.0) (80.1) (22.5) (69.4)
Year to date
(942.6)
(494.2) (229.7) (66.4) (198.1)
Average exchange rates were US$1 = R7.05 and US$1 = R6.78 for the September 2011 and June 2011 quarters respectively.
The Australian dollar exchange rates were A$1 = R7.44 and A$1 = R7.18 for the September 2011 and the June 2011 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 2011
6,825 5,597
1,228
1,674
1,944
1,682
262
1,944
1,682
262
(000 tonnes)
June 2011
7,155 5,883
1,272
1,717
1,907
1,676
231
1,907
1,676
231
Year to date
21,033 17,283
3,750
4,973
5,654
4,977
677
5,654
4,977
677
Yield (ounces per tonne)
September 2011
0.034 0.032
0.044
0.056
0.087
0.068
0.205
0.087
0.068
0.205
June 2011
0.033 0.031
0.044
0.059
0.083
0.065
0.218
0.083
0.065
0.218
Year to date
0.034 0.032
0.045
0.061
0.086
0.069
0.210
0.086
0.069
0.210
Gold produced (000 ounces)
September 2011
234.4 180.0
54.3
93.9
168.7
115.0
53.7
168.7
115.0
53.7
June 2011
237.2 180.8
56.3
101.0
159.1
108.7
50.4
159.1
108.7
50.4
Year to date
715.0 546.9
168.1
303.1
486.2
344.1
142.0
486.2
344.1
142.0
Gold sold (000 ounces)
September 2011
234.4 180.0
54.3
90.5
168.7
115.0
53.7
168.7
115.0
53.7
June 2011
237.2 180.8
56.3
101.5
159.1
108.7
50.4
159.1
108.7
50.4
Year to date
715.0 546.9
168.1
304.2
486.2
344.1
142.0
486.2
344.1
142.0
Gold price received
September 2011
1,711 1,711
1,714
1,481
1,729
1,715
1,758
1,638
1,625
1,666
(dollars per ounce)
June 2011
1,511 1,511
1,511
1,398
1,504
1,500
1,512
1,420
1,417
1,428
Year to date
1,533 1,533
1,532
1,419
1,547
1,535
1,576
1,489
1,478
1,517
Total cash cost
September 2011
617 606
651
494
891
978
704
844
927
667
(dollars per ounce)
June 2011
564 534
660
408
909
1,015
679
858
959
641
Year to date
566 534
671
426
879
949
709
846
913
683
Notional cash expenditure
September 2011
924 869
1,107
615
1,307
1,401
1,105
1,238
1,328
1,047
(dollars per ounce)
June 2011
885 889
876
526
1,265
1,371
1,037
1,195
1,295
979
Year to date
916 867
1,047
557
1,205
1,251
1,095
1,160
1,204
1,054
Operating costs
September 2011
21 20
28
25
74
63
145
70
60
137
(dollars per tonne)
June 2011
20 18
26
22
75
65
147
70
61
139
Year to date
20 19
28
24
73
63
149
70
60
143
Financial Results ($ million)
Revenue
September 2011
401.5 308.3
93.2
133.5
292.3
197.5
94.8
277.7
187.5
90.2
June 2011
358.1 273.0
85.0
142.2
239.0
163.1
75.9
226.0
153.8
72.3
Year to date
1,096.1 838.5
257.6
431.8
752.1
528.3
223.8
723.9
508.5
215.4
Net operating costs
September 2011
(132.1) (101.9)
(30.3)
(40.9)
(149.3)
(112.2)
(37.1) (141.6)
(106.3)
(35.3)
June 2011
(121.7) (87.8)
(33.9)
(38.2)
(142.5)
(109.1)
(33.4) (134.7)
(103.1)
(31.6)
Year to date
(375.6) (272.2)
(103.5)
(122.8)
(426.5)
(326.7)
(99.8) (410.5)
(314.4)
(96.1)
- Operating costs
September 2011
(143.1) (109.3)
(33.8)
(41.0)
(144.6)
(106.6)
(37.9) (137.1)
(101.1)
(36.1)
June 2011
(141.2) (108.4)
(32.8)
(37.6)
(142.1)
(108.2)
(33.9) (134.5)
(102.4)
(32.1)
Year to date
(429.2) (323.1)
(106.1)
(119.9)
(412.3)
(311.5)
(100.7) (396.8)
(299.9)
(97.0)
- Gold inventory change
September 2011
11.0 7.5
3.5
0.1
(4.7)
(5.5)
0.9
(4.5)
(5.3)
0.8
June 2011
19.5 20.7
(1.1)
(0.6)
(0.4)
(0.9)
0.5
(0.2)
(0.6)
0.5
Year to date
53.6 51.0
2.6
(2.9)
(14.2)
(15.1)
1.0
(13.7)
(14.6)
0.9
Operating profit
September 2011
269.4 206.4
63.0
92.6
143.0
85.3
57.7
136.2
81.2
55.0
June 2011
236.4 185.3
51.1
104.0
96.5
54.0
42.6
91.4
50.7
40.7
Year to date
720.5 566.3
154.2
309.0
325.6
201.6
124.0
313.5
194.1
119.4
Amortisation of mining assets
September 2011
(35.3) (26.7)
(8.6)
(14.6)
(43.7)
(41.6)
June 2011
(31.2) (25.8)
(5.5)
(15.1)
(38.4)
(36.3)
Year to date
(98.5) (78.4)
(20.1)
(43.6)
(115.7)
(111.4)
Net operating profit
September 2011
234.1 179.7
54.4
78.0
99.3
94.6
June 2011
205.1 159.5
45.6
88.8
58.2
55.0
Year to date
622.0 487.9
134.1
265.4
209.9
202.1
Other expenses
September 2011
(5.6) (3.9)
(1.8)
(7.1)
(2.6)
(2.5)
June 2011
(8.2) (5.8)
(2.4)
(3.3)
(1.5)
(1.4)
Year to date
(18.2) (12.8)
(5.5)
(13.8)
(5.5)
(5.3)
Profit before royalties and
September 2011
228.5 175.9
52.6
71.0
96.7
92.1
taxation
June 2011
196.9 153.7
43.2
85.6
56.7
53.6
Year to date
603.8 475.2
128.6
251.7
204.4
196.8
Royalties, mining and income
taxation
September 2011
(84.5) (66.0)
(18.5)
(32.6)
(34.3)
(32.8)
June 2011
(67.5) (53.0)
(14.5)
(29.9)
(20.9)
(19.8)
Year to date
(211.4) (167.1)
(44.3)
(88.5)
(74.1)
(71.4)
- Normal taxation
September 2011
(61.0) (49.5)
(11.5)
(32.3)
-
-
June 2011
(38.4) (31.0)
(7.4)
(27.4)
-
-
Year to date
(145.3) (122.4)
(22.9)
(89.5)
-
-
- Royalties
September 2011
(20.1) (15.4)
(4.7)
(4.4)
(7.4)
(7.0)
June 2011
(17.9) (13.6)
(4.2)
(4.5)
(6.1)
(5.8)
Year to date
(48.1) (36.8)
(11.3)
(11.7)
(19.1)
(18.4)
- Deferred taxation
September 2011
(3.5) (1.1)
(2.3)
4.0
(26.9)
(25.8)
June 2011
(11.2) (8.3)
(2.9)
1.9
(14.8)
(14.0)
Year to date
(18.1) (7.9)
(10.1)
12.6
(55.0)
(53.0)
Profit before
September 2011
143.9 109.9
34.1
38.3
62.4
59.3
non-recurring items
June 2011
129.4 100.7
28.7
55.7
35.8
33.9
Year to date
392.3 308.1
84.3
163.1
130.3
125.4
Non-recurring items
September 2011
(2.3) (0.6)
(1.7)
-
-
(0.1)
June 2011
(6.2) (1.3)
(4.9)
-
(2.4)
(2.2)
Year to date
(12.2) (5.3)
(6.9)
(0.2)
(4.2)
(4.1)
Net profit
September 2011
141.6 109.3
32.3
38.3
62.3
59.2
June 2011
123.2 99.4
23.8
55.7
33.4
31.6
Year to date
380.1 302.8
77.3
162.9
162.0
121.3
Net profit excluding gains and
losses on foreign exchange,
financial instruments and
non-recurring items
September 2011
143.6 110.0
33.7
38.9
62.8
59.9
June 2011
129.8 101.7
28.1
55.7
35.5
33.6
Year to date
391.8 308.3
83.6
163.6
130.4
125.5
Capital Expenditure
September 2011
(73.2) (46.9)
(26.3)
(16.7)
(76.2)
(54.8)
(21.4)
(72.6)
(52.2)
(20.4)
June 2011
(69.1) (52.3)
(16.8)
(15.6)
(58.6)
(40.3)
(18.3)
(55.9)
(38.5)
(17.4)
Year to date
(225.8) (155.9)
(69.9)
(49.0)
(173.6)
(118.9)
(54.7) (167.1)
(114.4)
(52.7)
#
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
KDC
Beatrix
South
Deep
Total
Tarkwa
Damang
Cerro
Corona
Total
St Ives
Agnew
Operating costs
(1)
Sept
2011
(5,450.4)
(3,131.1) (1,952.4)
(628.3)
(550.4)
(1,010.3)
(771.4)
(238.9)
(289.6)
(1,019.4)
(752.1)
(267.3)
June
2011
(5,250.7)
(3,074.0) (1,915.4)
(625.2)
(533.4)
(957.0)
(735.5)
(221.5)
(254.7)
(965.0)
(734.9)
(230.1)
Year to date (15,660.1)
(8,987.8) (5,588.7) (1,802.9) (1,596.2)
(2,978.7) (2,242.6)
(736.1)
(832.4)
(2,861.2) (2,162.0)
(699.2)
Gold-in-process and
Sept 2011
34.1
- -
-
-
58.3
42.6
15.7
0.2
(24.4)
(28.8)
4.4
inventory change*
June 2011
114.7
- -
-
-
107.1
115.7
(8.6)
8.9
(1.3)
(3.9)
2.6
Year to date
224.4
- -
-
-
298.8
288.8
10.0
(2.5)
(71.9)
(77.0)
5.1
Less:
Sept 2011
(26.4)
(17.2) (12.4)
(3.5)
(1.3)
(3.7)
(3.2)
(0.5)
(0.9)
(4.6)
(3.7)
(0.9)
Rehabilitation costs
June 2011
(27.3)
(17.3) (12.4)
(3.6)
(1.3)
(4.8)
(4.2)
(0.6)
(0.8)
(4.4)
(3.5)
(0.9)
Year to date
(77.8)
(51.8) (37.2)
(10.7)
(3.9)
(10.1)
(8.5)
(1.6)
(2.6)
(13.3)
(10.7)
(2.6)
General and admin
Sept 2011
(160.4)
(53.3) (36.8)
(8.0)
(8.5)
(70.5)
(64.2)
(6.3)
(4.3)
(32.3)
(19.1)
(13.2)
June
2011
(119.0)
(39.8) (28.3)
(5.3)
(6.2)
(61.0)
(54.5)
(6.5)
5.2
(23.4)
(15.3)
(8.1)
Year to date
(456.0)
(161.1) (111.4)
(24.9)
(24.8)
(193.1)
(173.5)
(19.6)
(14.7)
(87.1)
(54.6)
(32.5)
Plus:
Sept 2011
(304.7)
(80.7) (71.5)
(5.3)
(3.9)
(141.1)
(108.3)
(32.8)
(30.7)
(52.2)
(34.7)
(17.5)
Royalties
June 2011
(236.4)
(42.3) (33.3)
(5.1)
(3.9)
(122.1)
(93.1)
(29.0)
(30.4)
(41.6)
(28.0)
(13.6)
Year to date
(705.7)
(158.3) (132.9)
(14.0)
(11.4)
(333.7)
(255.3)
(78.4)
(81.0)
(132.7)
(92.3)
(40.4)
TOTAL CASH COST
(2)
Sept 2011 (5,534.2)
(3,141.3) (1,974.7)
(622.1)
(544.5)
(1,018.9)
(769.7)
(249.2)
(314.9)
(1,059.1)
(792.8)
(266.3)
June 2011 (5,226.1)
(3,059.2) (1,908.0)
(621.4)
(529.8)
(906.2)
(654.2)
(252.0)
(280.6)
(980.1)
(748.0)
(232.1)
Year to date (15,607.6)
(8,933.2) (5,573.0) (1,781.3) (1,578.9)
(2,810.4) (2,027.1)
(783.3)
(898.6)
(2,965.4) (2,266.0)
(699.4)
Plus:
Sept 2011 (1,327.4)
(679.8) (410.1)
(127.4)
(142.3)
(228.4)
(176.8)
(51.6)
(102.3)
(316.9)
Amortisation*
June 2011 (1,229.2)
(665.9) (401.1)
(139.0)
(125.8)
(186.9)
(150.4)
(36.5)
(115.2)
(261.2)
Year to date (3,754.8)
(1,994.6) (1,224.2)
(364.0)
(406.4)
(610.5)
(479.0)
(131.5)
(320.1)
(829.6)
Rehabilitation
Sept 2011
(26.4)
(17.2) (12.4)
(3.5)
(1.3)
(3.7)
(3.2)
(0.5)
(0.9)
(4.6)
June
2011
(27.3)
(17.3) (12.4)
(3.6)
(1.3)
(4.8)
(4.2)
(0.6)
(0.8)
(4.4)
Year to date
(77.8)
(51.8) (37.2)
(10.7)
(3.9)
(10.1)
(8.5)
(1.6)
(2.6)
(13.3)
TOTAL PRODUCTION
Sept 2011 (6,888.0) (3,838.3) (2,397.2)
(753.0)
(688.1)
(1,251.0)
(949.7)
(301.3)
(418.1) (1,380.6)
COST
(3)
June 2011 (6,482.6) (3,742.4) (2,321.5)
(764.0)
(656.9)
(1,097.9)
(808.8)
(289.1)
(396.6) (1,245.7)
Year to date (19,440.2)
(10,979.6) (6,834.4) (2,156.0) (1,989.2)
(3,431.0) (2,514.6)
(916.4) (1,221.3) (3,808.3)
Gold sold
Sept 2011
921.9
428.3 279.2
84.7
64.4
234.4
180.0
54.3
90.5
168.7
115.0
53.7
– thousand ounces
June 2011
944.3
446.5 272.5
98.0
76.1
237.2
180.8
56.3
101.5
159.1
108.7
50.4
Year to date
2,791.4
1,286.0 814.3
257.1
214.4
715.0
546.9
168.1
304.2
486.2
344.1
142.0
TOTAL CASH COST
Sept 2011
851
1,040 1,003
1,041
1,199
617
606
651
494
891
978
704
– US$/oz
June 2011
816
1,010 1,033
935
1,027
564
534
660
408
909
1,015
679
Year to date
806
1,001 986
998
1,061
566
534
671
426
879
949
709
TOTAL CASH COST
Sept 2011 192,997
235,780 227,395
236,002
271,842
139,797
137,446
147,456
111,865
201,849
221,638
159,461
– R/kg
June 2011 177,934
220,261 225,133
203,871
223,922
122,841
116,302
143,836
88,882
198,080
221,367
147,929
Year to date 179,768
223,352 220,033
222,718
236,717
126,361
119,157
149,799
94,959
196,111
211,716
158,307
TOTAL PRODUCTION
Sept 2011
1,060
1,271 1,218
1,260
1,516
757
748
787
655
1,161
COST – US$/oz
June 2011
1,013
1,236 1,257
1,150
1,274
683
660
757
576
1,155
Year to date
1,004
1,230 1,209
1,208
1,337
691
662
785
578
1,129
TOTAL PRODUCTION
Sept 2011 240,210
288,096 279,048
285,660
343,535
171,605
169,589
178,284
148,526
263,126
COST – R/kg
June 2011 220,714
269,451 273,923
250,656
277,642
148,827
143,787
165,011
125,626
251,758
Year to date 223,911
274,517 269,836
269,567
298,231
154,265
147,813
175,253
129,061
251,856
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 non-recurring 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 = R7.05 and US$1 = R6.78 for the September 2011 and June 2011 quarters respectively.
GOLD FIELDS RESULTS I 24
Capital expenditure
Figures are in South African rand millions unless otherwise stated
Total
Group
South Africa Region
West Africa Region
South
America
Region
Australasia Region
Corporate
Ghana
Peru
Australia
Total
KDC
Beatrix
South
Deep
Total
Tarkwa
Damang
Cerro
Corona
Total
St Ives
Agnew
Sustaining capital
Sept 2011
(1,244.4)
(206.8) (156.8) (50.0)
- (481.1)
(332.0)
(149.1)
(110.9)
(438.0) (315.2)
(122.8)
(7.6)
June 2011
(1,009.9)
(151.0) (108.9) (42.1)
- (439.1)
(354.0)
(85.1)
(98.1)
(320.9) (215.3)
(105.6)
(0.8)
Year
to
date
(3,237.4)
(468.5) (324.2) (144.3)
- (1,475.0)
(1,081.9)
(393.1)
(322.4)
(960.8) (643.7)
(317.1)
(10.7)
Ore reserve
Sept 2011
(567.1)
(567.1) (454.0) (113.1)
-
-
-
-
-
- -
-
-
development June
2011
(546.2)
(546.2) (435.9) (110.3)
-
-
-
-
-
- -
-
-
Year
to
date
(1,586.3) (1,586.3) (1,269.9) (316.4)
-
-
-
-
-
- -
-
-
Project capital
#
Sept 2011
(509.2)
(491.9) - -
(491.9) -
-
-
(6.6)
- -
-
(10.7)
June 2011
(622.4)
(471.9) - -
(471.9) -
-
-
(7.4)
- -
-
(143.1)
Year
to
date
(1,647.5)
(1,375.0) - -
(1,375.0) -
-
-
(17.6)
- -
-
(254.9)
Brownfields
Sept 2011
(132.6)
- - -
-
(35.9)
-
(35.9)
-
(96.7) (68.7)
(28.0)
-
exploration
June 2011
(106.5)
- - -
-
(27.8)
-
(27.8)
-
(78.7) (59.9)
(18.8)
-
Year
to
date
(335.7)
- - -
-
(91.8)
-
(91.8)
-
(243.9) (181.2)
(62.7)
-
Total capital
Sept 2011
(2,453.3)
(1,265.8) (610.8) (163.1)
(491.9)
(517.0)
(332.0)
(185.0)
(117.5)
(534.7) (383.9)
(150.8)
(18.3)
expenditure June
2011
(2,285.0)
(1,169.1) (544.8) (152.4)
(471.9) (466.9)
(354.0)
(112.9)
(105.5)
(399.6) (275.2)
(124.4)
(143.9)
Year
to
date
(6,806.9)
(3,429.8) (1,594.1) (460.7)
(1,375.0)
(1,566.8)
(1,081.9)
(484.9)
(340.0)
(1,204.7) (824.9)
(379.8)
(265.6)
#
Project capital under Corporate in the September quarter includes R45 million (US$6 million) at the Arctic Platinum Project (APP), a credit from Chucapaca of R50 million (US$7 million)
and general corporate capital expenditure. From this quarter and retrospectively for the year, the NCE project capital at Chucapaca only includes the 51 per cent funded by Gold Fields and
excludes the 49 per cent funded by Buenaventura, with the result that a credit of R50 million (US$7 million) is included in corporate capital expenditure for the September quarter. The table
above includes only Gold Fields’ 51 per cent share of capital expenditure in Chucapaca, resulting in total capital expenditure of R2,453 million, whereas the Statement of Cash Flows
includes all capital expenditure, including that relating to non-controlling interest holders. Expenditure in the June quarter amounted to R119 million (US$18 million) and R12 million (US$1
million) at Chucapaca and APP respectively.
Notional cash expenditure
##
Figures are in South African rand millions unless otherwise stated
Total
Group
South Africa Region
West Africa Region
South
America
Region
Australasia Region
Corporate
Ghana
Peru
Australia
Total
KDC
Beatrix
South
Deep
Total
Tarkwa
Damang
Cerro
Corona
Total
St
Ives
Agnew
Operating costs
Sept 2011
(5,450.4)
(3,131.1) (1,952.4) (628.3)
(550.4) (1,010.3)
(771.4)
(238.9)
(289.6)
(1,019.4) (752.1)
(267.3)
-
June
2011
(5,250.7)
(3,074.0) (1,915.4) (625.2)
(533.4)
(957.0)
(735.5)
(221.5)
(254.7) (965.0) (734.9)
(230.1)
-
Year
to
date
(15,660.1)
(8,987.8) (5,588.7) (1,802.9)
(1,596.2) (2,978.7)
(2,242.6)
(736.1)
(832.4)
(2,861.2) (2,162.0)
(699.2)
-
Capital
Sept 2011
(2,453.3)
(1,265.8) (610.8) (163.1)
(491.9) (517.0)
(332.0)
(185.0)
(117.5) (534.7) (383.9)
(150.8)
(18.3)
expenditure
June 2011
(2,285.0)
(1,169.1) (544.8) (152.4)
(471.9) (466.9)
(354.0)
(112.9)
(105.5) (399.6) (275.2)
(124.4)
(143.9)
Year
to
date
(6,806.9) (3,429.8) (1,594.1) (460.7)
(1,375.0) (1,566.8)
(1,081.9)
(484.9)
(340.0)
(1,204.7) (824.9)
(379.8)
(265.6)
Notional cash
Sept 2011
274,615
330,023 295,164 300,228
520,369 209,506
197,036
250,828
139,370 296,188 317,585
250,359
-
expenditure
June 2011
256,692
305,501 290,289 255,118
424,894 193,019
193,689
190,868
114,604 275,788 298,935
225,940
-
– R/kg
Year to date
258,884
310,471 283,591 283,021
445,457 204,375
195,421
233,505
124,379 268,891 279,071
244,228
-
Notional cash
Sept 2011
1,212
1,456 1,302 1,325
2,296
924
869
1,107
615 1,307 1,401
1,105
-
expenditure June
2011
1,178
1,401 1,332 1,170
1,949
885
889
876
526 1,265 1,371
1,037
-
– US$/oz
Year to date
1,160
1,391 1,271 1,268
1,996
916
876
1,047
557 1,205 1,251
1,095
-
##
Notional cash expenditure (NCE) per kilogram (ounce) = operating costs plus capital expenditure, excluding minority interest in projects, 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
KDC
Beatrix
South
Deep
#
Total
Tarkwa Damang
Cerro
Corona
Total
St Ives
Agnew
Ore milled/treated (000 tonnes)
- underground
September 2011
2,851 2,283 1,221
547
515
-
-
-
-
568
424
144
June 2011
3,036 2,451 1,269
648
534
-
-
-
-
585
412
173
Year
to
date
8,600 6,795 3,582
1,694
1,519
-
-
-
-
1,805
1,337
468
- surface
September 2011
11,919 2,044 1,584
352
108
6,825
5,597
1,228
1,674
1,376
1,258
118
June 2011
12,151 1,957 1,379
422
156
7,155
5,883
1,272
1,717
1,322
1,264
58
Year to date
35,815 5,960 4,405
1,183
372
21,033
17,283
3,750
4,973
3,849
3,640
209
- total
September 2011
14,770 4,327 2,805
899
623
6,825
5,597
1,228
1,674
1,944
1,682
262
June 2011
15,187 4,408 2,648
1,070
690
7,155
5,883
1,272
1,717
1,907
1,676
231
Year to date
44,415
12,755 7,987
2,877
1,891
21,033
17,283
3,750
4,973
5,654
4,977
677
Yield (grams per tonne)
- underground
September 2011
5.4
5.3 6.2
4.6
5.0
-
-
-
-
5.9
4.7
9.5
June 2011
5.3
5.2 6.0
4.5
5.3
-
-
-
-
5.5
4.2
8.6
Year to date
5.4
5.4 6.2
4.5
5.3
-
-
-
-
5.4
4.3
8.6
- surface
September 2011
1.1
0.6 0.7
0.3
0.5
1.1
1.0
1.4
1.7
1.4
1.3
2.5
June
2011
1.1
0.6 0.6
0.3
0.9
1.0
1.0
1.4
1.8
1.3
1.3
1.5
Year to date
1.1
0.6 0.7
0.3
0.8
1.1
1.0
1.4
1.9
1.4
1.4
1.9
- combined
September 2011
1.9
3.1 3.1
2.9
3.2
1.1
1.0
1.4
1.7
2.7
2.1
6.4
June 2011
1.9
3.2 3.2
2.8
3.4
1.0
1.0
1.4
1.8
2.6
2.0
6.8
Year to date
2.0
3.1 3.2
2.8
3.5
1.1
1.0
1.4
1.9
2.7
2.2
6.5
Gold produced (kilograms)
- underground
September 2011
15,446
12,090 7,612
2,524
1,954
-
-
-
-
3,356
1,984
1,372
June 2011
15,953
12,741 7,609
2,902
2,230
-
-
-
-
3,212
1,732
1,480
Year to date
46,149
36,365 22,380
7,597
6,388
-
-
-
-
9,784
5,765
4,019
- surface
September 2011
13,335 1,233 1,072
112
49
7,290
5,600
1,690
2,921
1,891
1,593
298
June
2011
13,404 1,148 866
146
136
7,377
5,625
1,752
3,143
1,736
1,647
89
Year
to
date
40,635 3,631 2,948
401
282
22,241
17,012
5,229
9,426
5,337
4,938
399
- total
September 2011
28,781
13,323 8,684
2,636
2,003
7,290
5,600
1,690
2,921
5,247
3,577
1,670
June 2011
29,357
13,88 9 8,475
3,048
2,366
7,377
5,625
1,752
3,143
4,948
3,379
1,569
Year to date
86,784
39,996 25,328
7,998
6,670
22,241
17,012
5,229
9,426
15,121
10,703
4,418
Operating costs (Rand per tonne)
- underground
September 2011
1,227 1,294 1,483
1,101
1,051
-
-
-
-
960
762
1,544
June 2011
1,130 1,176 1,390
927
972
-
-
-
-
935
799
1,258
Year to date
1,170 1,244 1,441
1,020
1,029
-
-
-
-
892
735
1,341
- surface
September 2011
164
87 90
74
86
148
138
195
173
345
341
381
June 2011
150
98 110
59
93
134
125
174
148
316
321
214
Year
to
date
156
90 97
64
90
142
130
196
167
325
324
343
- total
September 2011
369 724 696
699
883
148
138
195
173
524
447
1,020
June 2011
346 697 723
584
773
134
125
174
148
506
438
996
Year to date
353 705 700
627
844
142
130
196
167
506
434
1,033
#
September quarter includes 123,000 tonnes (June quarter includes 115,000 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, which are reported separately where appropriate.
KDC
September 2011 quarter
June 2011 quarter
Year to date F2011
Reef
Carbon
Leader
Kloof
Main
VCR
Carbon
Leader
Kloof
Main
VCR
Carbon
Leader
Kloof
Main
VCR
Advanced (m)
4,502
199
666
5,093
4,728 185
1,232
5,596
13,887 591
2,998
16,270
Advanced on reef
(m)
499
43
181
752
909 51
243
836
2,470
185
590
2,647
Sampled (m)
546
15
243
618
849 54
156
657
2,358
144
582
2,169
Channel width
(cm)
99
99
86
107
79 90 76
110 79 97 92
108
Average value
-
(g/t)
19.0
17.4
14.7
24.6
21.8 30.7 9.4 23.4 23.0 22.1 10.2 25.8
-
(cm.g/t)
1,879
1,714
1,269
2,636
1,716 2,769 717 2,578 1,813 2,142 944 2,787
Beatrix
September 2011 quarter
June 2011 quarter
Year to date F2011
Reef
Beatrix
Kalkoenkrans
Beatrix
Kalkoenkrans
Beatrix
Kalkoenkrans
Advanced (m)
4,065
1,377
4,953 1,729
12,604 4,655
Advanced on reef
(m)
994
188
1,371 302
3,545 805
Sampled (m)
1,071
186
1,431 288
3,372 789
Channel width
(cm)
141
133
104 129 116 110
Average value
-
(g/t)
7.0
14.6
11.7 14.2 9.6 14.7
-
(cm.g/t)
982
1,941
1,221 1,840 1,112 1,613
South Deep
September 2011 quarter
June 2011 quarter
Year to date F2011
Reef
Elsburgs
1,2
Elsburgs
1,2
Elsburgs
1,2
Main Advanced
(m)
2,938
3,063 8,843
- Main above 95 level
(m)
1,484
1,890 5,073
- Main below 95 level
(m)
1,454
1,173 3,770
Advanced on reef
(m)
1,204
1,511 4,252
Square metres
de-stressed
(m
2
)
6,815
5,554 17,356
- Reserve value de-stressed
(g/t)
7.2
7.1 7.2
Shaft sinking
(m)
28
- 28
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
Zakira Amra
Tel:
+27 11 562 9775
Mobile: +27 79 694 0267
e-mail: zakira.amra@goldfields.co.za
Willie Jacobsz
Tel:
+508 839 1188
Mobile: +857 241 7127
e-mail: willie.jacobsz@gfexpl.com
Media Enquiries
Sven Lunsche
Tel:
+27 11 562 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
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 Office
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)
P A Schmidt (Chief Financial Officer)
K Ansah
#
°
C A Carolus°
R Dañino **°
A R Hill °
J L Lazaro º
R P Menell °
M S Moloko °
D N Murray °
D M J Ncube °
R L Pennant-Rea *°
G M Wilson °
* British
#
Ghanaian
Canadian ºFilipino
** 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: 10 November 2011
GOLD FIELDS LIMITED
By:
Name: Mr W J Jacobsz
Title: Senior Vice President: Investor
Relations and Corporate Affairs