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Equity Accounted Investees (Tables)

12 Months Ended

Dec. 31, 2020


		UNITED STATES DOLLAR
		2020			2019			2018
16.1	EQUITY ACCOUNTED INVESTEES
	Investment in joint ventures		233.3			172.0
(a)	Far Southeast Gold Resources Incorporated (“FSE”)		144.4			82.1
(b)	Asanko Gold		88.9			89.9
	Investment in associates		—			—
(c)	Maverix Metals Incorporated (“Maverix”) 1		—			—
(d)	Other associates		—			—

	Total equity accounted investees		233.3			172.0

	Share of results of equity accounted investees, net of taxation recognised in the consolidated income statement are made up as follows:
(a)	FSE		(1.6	)		(1.4	)		(12.9	)
(b)	Asanko Gold - earnings		48.5			4.1			(1.1	)
(b)	Asanko Gold - impairment		(49.5	)		—			—
(c)	Maverix Metals Incorporated (“Maverix”) 1		—			0.4			0.9
(d)	Other associates		—			—			—

	Total share of results of equity investees, net of taxation		(2.6	)		3.1			(13.1	)

1	Maverix was derecognised as an associate on 9 May 2019.

Summary of Equity Method Investment in Joint Venture - Far Southeast Gold Resources Incorporated ("FSE")


	2020			2019
Unlisted shares at cost		230.0			230.0
Equity contribution		95.2			93.6
Cumulative impairment 1		(85.6	)		(147.9	)
Share of accumulated losses brought forward		(93.6	)		(92.2	)
Share of loss after taxation 2		(1.6	)		(1.4	)

Total investment in joint venture 3		144.4			82.1

1	Refer note 7 for details of impairment.

2	Gold Fields share of loss after taxation represents exploration and other costs, including work completed on a scoping study, which is fully funded by Gold Fields as part of their equity contribution.

3	FSE has no revenues or significant assets or liabilities. Assets included in FSE represent the rights to explore and eventually mine the FSE project.

Summary of Financial Information and Carrying Amount of the Group Interest in Asanko

The following table summarises the financial information and the carrying amount of the Group’s interest in Asanko:

Investment in joint venture at cost conists of:


	2020			2019
Initial investment at cost		86.9			86.9
Share of accumulated profit/(losses) brought forward		3.0			(1.1	)
Share of profit after taxation before impairment		48.5			4.1
Impairment 3		(49.5	)		—

Carrying value at 31 December		88.9			89.9

The Group’s interest in the summarised financial statements of Asanko on a combined basis after fair value adjustments as determined at acquisition is as follows:


	2020			2019
Statement of financial position - Asanko
Non-current assets 1		392.9			474.6
Current assets 2		170.6			120.0
Non-current liabilities		(71.8	)		(79.4	)
Current liabilities		(109.7	)		(62.2	)

Net assets		382.0			453.0
Less: Shika redeemable preference shares		(196.4	)		(271.4	)

Net assets attributable to owners of the parent		185.6			181.6

Group’s share of net assets		88.9			89.9

Reconciled as follows:
Cash consideration paid		165.0			165.0
Less: Consideration allocated to the redeemable preference shares		(129.9	)		(129.9	)

Consideration paid for equity portion		35.1			35.1
Gain on acquisition		51.8			51.8
Share of accumulated losses brought forward		3.0			(1.1	)
Share of profit after taxation before impairment		48.5			4.1
Impairment 3		(49.5	)		—

Carrying amount of interest in joint venture		88.9			89.9

Income statement - Asanko
Revenue		418.1			341.0
Production costs		(222.5	)		(199.2	)
Depreciation and amortisation		(50.9	)		(95.4	)
Other expenses		(16.0	)		(20.1	)
Royalties		(20.9	)		(17.2	)

Profit for the year before impairment		107.8			9.1

Group’s share of profit before impairment		48.5			4.1
Group’s share of impairment 3		(49.5	)		—

Group’s share of total comprehensive income after impairment		(1.0	)		4.1

1	Includes impact of fair value adjustment, amounting to US$39.6 million, to property, plant and equipment of the Asanko Gold mine as determined at acquisition and impairment as discussed below.

2	Current assets includes cash and cash equivalents amounting of US$64.3 million (2019: US$43.7 million).

Following the identification of an impairment trigger during 2020, an impairment of US$49.5 million of the Asanko Gold Mine was recognised. Due to the

re-evaluation

of the geological modelling by our JV partner, Galiano, Gold Fields is not in a position to provide a reserve and resource estimate for Asanko as at 31 December 2020. Taking this into consideration, management has modelled various scenarios for the Asanko Life of Mine (LOM) in order to determine their best estimates of the future cash flows of the Asanko gold mine. The various LoM scenario runs were undertaken in an attempt to model Asanko’s future cash flows in the absence of a revised Resource and Reserve at 31 December 2020. These scenarios are based on the

pre-feasibility

study completed in 2019, in order to declare a Reserve at 31 December 2019, but were modified where appropriate to reflect prevailing circumstances.

Summary of Equity Method Investments in Associates - Maverix Metals Incorporated ("Maverix")

Investment in associate consists of:


	Listed shares at cost	—	42.1
	Profit on dilution of Gold Fields’ interest in Maverix	—	4.0
	Transaction costs capitalised	—	0.3
	Share of accumulated profits brought forward	—	1.2
	Share of profit after taxation	—	0.4
	Derecognition of associate	—	(48.0	)

	Investment in associate -Maverix	—	—

(d)	Other
	Investment in associate	—	—
	Rusoro Mining Limited (“Rusoro”) 1	—	—

1	Represents a holding of 25.7% (2019: 25.7%) in Rusoro.

The carrying value of Rusoro was written down to US$nil at 31 December 2010 due to losses incurred by the entity. The fair value, based on the quoted market price of the investment, in Rusoro at 31 December 2020 is US$4.4 million (2019: US$6.5 million).The unrecognised share of loss of Rusoro for the year amounted to US$5.0 million (2019: unrecognised shares of loss of US$4.2 million). The cumulative unrecognised share of losses of Rusoro at 31 December 2020 amounted to US$207.8 million (201

: US$202.8 million).

On 22 August 2016, the Arbitration Tribunal, operating under the Additional Facility Rules of the World Bank’s International Centre for the Settlement of Investment Disputes, awarded Rusoro damages of US$967.8 million plus pre and post-award interest which currently equates to in excess of US$1.2 billion in the arbitration brought by Rusoro against the Bolivarian Republic of Venezuela (“Venezuela”).

Venezuela has not complied with the arbitration award terms, which were issued on 22 August 2016. On 6 December 2017, Rusoro obtained a judgement against Venezuela in the Superior Court of Justice in Ontario, Canada, in excess of US$1.3 billion. The judgement, which was issued on default as a result of Venezuela’s failure to appear before the Ontario court, arised out of Rusoro’s ongoing dispute with Venezuela over the South American nation’s seizure of its gold mining properties in the country. The Canadian judgement, which confirmed an arbitration award issued in Rusoro’s favour in the same amount, was issued on 25 April 2017. Venezuela did not appeal or seek to vacate the judgement, and its time to do so expired.

Rusoro further filed a suit in the Supreme Court of the State of New York, seeking recognition of the Canadian judgement. Rusoro brought the New York lawsuit in addition to an action it filed in the U.S. District Court for the District of Columbia, which seeks recognition of and the entry of judgement on the original arbitration award. A favourable ruling from either the New York or D.C. court will entitle Rusoro to use all legal procedures – including broad discovery from both Venezuela and third parties – that U.S. law provides judgement creditors. Any judgement issued in New York will also accrue interest at 9% per annum until the judgement is fully paid. On 19 October 2018, Rusoro announced that it had reached a settlement agreement with Venezuela by which the Venezuela government agreed to pay Rusoro US$1.28 billion to acquire the company’s mining data and full release of the judgement issued in favour of the company. In a decision dated 29 January 2019, the Paris Court of Appeals partially annulled the arbitral award issued in favour of the Company in August 2016. Rusoro continues to vigorously pursue all available remedies to reinstate such award.

Summary of Other Investments


	Listed shares at cost	—	42.1
	Profit on dilution of Gold Fields’ interest in Maverix	—	4.0
	Transaction costs capitalised	—	0.3
	Share of accumulated profits brought forward	—	1.2
	Share of profit after taxation	—	0.4
	Derecognition of associate	—	(48.0	)

	Investment in associate -Maverix	—	—

(d)	Other
	Investment in associate	—	—
	Rusoro Mining Limited (“Rusoro”) 1	—	—

1	Represents a holding of 25.7% (2019: 25.7%) in Rusoro.

: US$202.8 million).

Summary of Share of Joint Operation and Includes Inter-company Transactions and Balances

Below is a summary of Gold Fields’ share of the joint operation and includes inter-company transactions and balances:


	2020				2019
Statement of financial position	US$		A$		US$			A$
Non current assets
Property, plant and equipment		648.6		843.0		623.0			887.6
Current assets		34.2		44.4		27.5			39.3
Cash and cash equivalents		7.3		9.5		6.5			9.3
Inventories		23.1		30.0		18.3			26.1
Other receivables		3.8		4.9		2.7			3.9

Total assets		682.8		887.4		650.5			926.9

Total equity
Retained earnings		38.5		50.1		(0.6	)		(0.8	)

Non current liabilities		162.8		211.6		147.3			209.9
Deferred taxation		60.7		78.9		50.2			71.6
Finance lease liabilities		81.7		106.2		79.4			113.1
Environmental rehabilitation costs		18.6		24.2		17.6			25.1
Long-term incentive plan		1.8		2.3		0.1			0.1
Current liabilities		481.5		625.7		503.8			717.8
Related entity loans payable		452.8		588.4		480.4			684.5
Trade and other payables		21.4		27.8		17.5			24.9
Current portion of finance lease liabilities		7.3		9.5		5.9			8.4

Total equity and liabilities		682.8		887.4		650.5			926.9