
Standard(s) Amendment(s) Interpretation(s)	Nature of the change	Salient features of the changes	Impact on financial position or performance
IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2	Amendment	•This amendment to IAS 1 requires companies to disclose their material accounting policy information rather than their significant accounting policies; •This amendment also provides a definition of material accounting policy information; •Further, the amendment clarifies that immaterial accounting policy information need not be disclosed; and •To support this amendment, the Board also amended IFRS Practice Statement 2 Making Materiality Judgements, to provide guidance on how to apply the concept of materiality to accounting policy disclosures.	No impact
IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors	Amendment	•This amendment to IAS 8 clarifies how companies should distinguish between changes in accounting policies and changes in accounting estimates.	No impact

Accounting policies continued

1.Basis of preparation continued


Standard(s) Amendment(s) Interpretation(s)	Nature of the change	Salient features of the changes	Impact on financial position or performance
IAS 12 Income Taxes	Amendment	•The amendments to IAS 12 Income Taxes require companies to recognise deferred tax on transactions that, on initial recognition, give rise to equal amounts of taxable and deductible temporary differences. They will typically apply to transactions such as leases of lessees and decommissioning obligations and will require the recognition of additional deferred tax assets and liabilities; •The amendment should be applied to transactions that occur on or after the beginning of the earliest comparative period presented. In addition, entities should recognise deferred tax assets (to the extent that it is probable that they can be utilised) and deferred tax liabilities at the beginning of the earliest comparative period for all deductible and taxable temporary differences associated with: –Right-of-use assets and lease liabilities; and –Decommissioning, restoration and similar liabilities, and the corresponding amounts recognised as part of the cost of the related assets; and •The cumulative effect of recognising these adjustments is recognised in retained earnings, or another component of equity, as appropriate.	No impact
IAS 12 Income Taxes (OECD Pillar Two model rules)	Amendments	•The Group has adopted International Tax Reform – Pillar Two Model Rules (Amendments to IAS 12) upon their release on 23 May 2023. •The additional amendments to IAS 12 Income Taxes give companies temporary relief from accounting for deferred taxes arising from the Organisation for Economic Co-operation’s (“OECD”) international tax reform. The OECD published the Pillar Two model rules in December 2021 to ensure that large multinational companies would be subject to a minimum 15% tax rate. More than 135 countries and jurisdictions representing more than 90% of global gross domestic product have agreed to the Pillar Two model rules; •The amendments introduce the following: –A temporary exception to the accounting for deferred taxes arising from jurisdictions implementing the global tax rules; and –Targeted disclosure requirements to help investors better understand a company's exposure to income taxes arising from the reform, particularly before legislation implementing the rules is in effect. •Companies can benefit from the temporary exception immediately but are required to provide the disclosures to investors for annual reporting periods beginning on or after 1 January 2023; •The adoption of the amendments resulted in the Group not having to account for any deferred tax impact as a result of the tax reform at 31 December 2023; •The mandatory exception applies retrospectively. The retrospective application has no impact on the Group’s consolidated financial statements; and •The Group has performed a preliminary impact assessment of the potential future impact of the tax reform and amendments on its financial statements. Refer note 10 for further details.	Refer note 10 for further details.


Standard(s) Amendment(s) Interpretation(s)	Nature of the change	Salient features of the changes	Impact on financial position or performance
IFRS 17 Insurance Contracts	New Standard	•IFRS 17 supersedes IFRS 4 Insurance Contracts and aims to increase comparability and transparency about profitability. The new standard introduces a new comprehensive model (“general model”) for the recognition and measurement of liabilities arising from insurance contracts; •In addition, it includes a simplified approach and modifications to the general measurement model that can be applied in certain circumstances and to specific contracts, such as: –Reinsurance contracts held; –Direct participating contracts; and –Investment contracts with discretionary participation features. •Under the new standard, investment components are excluded from insurance revenue and service expenses. Entities can also choose to present the effect of changes in discount rates and other financial risks in profit or loss or OCI; and •The new standard includes various new disclosures and requires additional granularity in disclosures to assist users to assess the effects of insurance contracts on the entity’s financial statements.	No impact

Standards, interpretations and amendments to published standards that are not yet effective

Certain new standards, amendments and interpretations to existing standards have been published that apply to

the Group’s accounting periods beginning on 1 January 2024 or later periods but have not been early adopted by

the Group.

These standards, amendments and interpretations that are relevant to the Group are:


Standard(s) Amendment(s) Interpretation(s)	Nature of the change	Salient features of the changes	Effective date*
IAS 1 Presentation of Financial Statements	Amendments	•The amendments to IAS 1 clarify that liabilities are classified as either current or non-current, depending on the rights that exist at the end of the reporting period. Classification is unaffected by the expectations of the entity or events after the reporting date; •The amendments also clarify what IAS 1 means when it refers to the ‘settlement’ of a liability; and •The amendments are not expected to have a material impact on the Group.	1 January 2024
IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosure	Amendments	•The amendments require disclosures to enhance the transparency of supplier finance arrangement and their effects on an entity's liabilities, cash flows and exposure to liquidity risk; and •The amendments are not expected to have a material impact on the Group.	1 January 2024
IAS 21 The Effect of Changes in Foreign Exchange Rates	Amendment	•The amendment to IAS 21 provides guidance on when a currency is exchangeable and how to determine the exchange rate when it is not; and •The amendment is not expected to have a material impact on the Group.	1 January 2025

*Effective date refers to annual period beginning on or after said date.

#On 6 March 2024, the SEC adopted rules covering climate-related disclosures which will result in a significant expansion of required climate-related

disclosures in SEC filings. The required disclosures are included in Regulations S-K and S-X and cover strategy, governance, risk management,

targets and goals, greenhouse gas emissions, and financial statement effects (collectively, the “SEC climate disclosure rules”). The new rules apply

to both domestic and foreign private issuers (FPIs) and create a new “Climate-Related Disclosure” section in annual reports and registration

statements. The new rules also require certain disclosures in the audited financial statements. The effective dates and transition provisions vary by

type of registrant and for certain disclosure provisions. On 15 March 2024, the US Court of Appeals for the Fifth Circuit temporarily stayed the rules

as such uncertainty exists. The Group is currently in the process of assessing the impact of the rules.

Accounting policies continued

1.Basis of preparation continued

Significant accounting judgements and estimates

Use of estimates: The preparation of the financial statements in accordance with IFRS Accounting Standards requires

the Group’s management to make estimates and assumptions that affect the reported amounts of assets and

liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported

amounts of revenues and expenses during the reporting period. The determination of estimates requires the

exercise of judgement based on various assumptions and other factors such as historical experience, current and

expected economic conditions, and in some cases actuarial techniques. Actual results could differ from those

estimates.

The more significant areas requiring the use of management estimates and assumptions relate to the following:

•Mineral reserves and resources estimates (this forms the basis of future cash flow estimates used for impairment

assessments and units-of-production depreciation and amortisation calculations);

•Carrying value of property, plant and equipment;

•Commencement of commercial levels of production;

•Estimates of recoverable gold and other materials in heap leach and stockpiles, gold in process and product

inventories including write-downs of inventory to net realisable value;

•Carrying value of equity-accounted investees;

•Provision for environmental rehabilitation costs;

•Provision for silicosis settlement costs;

•Income taxes;

•Share-based payments;

•Long-term incentive plan;

•The fair value and accounting treatment of financial instruments; and

•Contingencies.

Estimates and judgements are continually evaluated and are based on historical experience, discount rates and

other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts

of assets and liabilities within the financial year are discussed below.

Mineral Reserves and Resources estimates

Mineral Reserves are estimates of the amount of product, inclusive of diluting materials and allowances for losses,

which can be economically and legally extracted from the Group’s properties, as determined by life-of-mine

schedules or pre-feasibility studies.

Mineral Resources are estimates, based on specific geological evidence and knowledge, including sampling, of the

amount of product in situ, for which there is a reasonable prospect for eventual legal and economic extraction.

In order to calculate the reserves and resources, estimates and assumptions are required about a range of

geological, technical and economic factors, including but not limited to quantities, grades, production techniques,

recovery rates, production costs, capital expenditure, transport costs, commodity demand, commodity prices and

exchange rates.

Estimating the quantity and grade of the mineral reserves and resources is based on exploration and sampling

information gathered through appropriate techniques (primarily diamond drilling, reverse circulation drilling, air-core

and sonic drilling), surface three-dimensional reflection seismics, ore body faces modelling, structural modelling,

geological mapping, detailed ore zone wireframes and geostatistical estimation. This process may require complex

and difficult geological judgements and calculations to interpret the data.

The Group is required to determine and report on the Mineral Reserves and Resources in accordance with the South

African Mineral Resource Committee (“SAMREC”) code and the United States Security and Exchange Commission

Rule SK 1300 on an annual basis. The Mineral Reserves and Resources were approved by the Competent Person.

Estimates of Mineral Reserves and Resources may change from year to year due to the change in economic,

regulatory, infrastructural or social assumptions used to estimate ore reserves and resources, and due to additional

geological data becoming available.

Changes in reported proved and probable reserves may affect the Group’s financial results and position in a number

of ways, including the following:

•The recoverable amount used in the impairment calculations may be affected due to changes in estimated cash

flows or timing thereof (refer to note 7);

•Amortisation and depreciation charges to profit or loss may change as these are calculated on the units-of-

production method, or where the useful economic lives of assets change (refer to note 2);

•Provision for environmental rehabilitation costs may change where changes in ore reserves affect expectations

about the timing or cost of these activities (refer to note 28.1); and

•The carrying value of deferred tax assets may change due to changes in estimates of the likely recovery of the tax

benefits (refer to note 26).

Changes in reported measured and indicated resources may affect the Group’s financial results and position in a

number of ways, including the following:

•The recoverable amount used in the impairment calculations may be affected due to changes in estimated market

value of resources exclusive of reserves (refer to note 7); and

•Amortisation and depreciation charges for the mineral rights asset at the Australian operations may change as a

result of the change in the portion of mineral rights asset being transferred from the non-depreciable component

to the depreciable component (refer to note 2).

Carrying value of property, plant and equipment

All mining assets are amortised using the units-of-production method where the mine operating plan calls for

production from proved and probable mineral reserves.

Mobile and other equipment are depreciated over the shorter of the estimated useful life of the asset or the estimate

of mine life based on proved and probable mineral reserves.

The calculation of the units-of-production rate of amortisation could be impacted to the extent that actual production

in the future is different from current forecast production based on proved and probable mineral reserves. This would

generally result from the extent that there are significant changes in any of the factors or assumptions used in

estimating mineral reserves. These factors could include:

•Changes in proved and probable mineral reserves;

•Unforeseen operational issues at mine sites;

•Changes in capital, operating, mining, processing and reclamation costs, discount rates and foreign currency

exchange rates; and

•Changes in mineral reserves could similarly impact the useful lives of assets depreciated on a straight-line basis,

where those lives are limited to the life of the mine.

The Group reviews and tests the carrying value of long-lived assets annually or when events or changes in

circumstances suggest that the carrying amount may not be recoverable by comparing the recoverable amounts to

these carrying values. Assets are grouped at the lowest level for which identifiable cash flows are largely

independent of cash flows of other assets and liabilities. If there are indications that impairment or reversal of

impairment may have occurred, estimates are prepared of recoverable amounts of each group of assets. The

recoverable amounts of cash-generating units (“CGU”) and individual assets have been determined based on the

higher of value in use and fair value less cost of disposal (“FVLCOD”) calculations. Expected future cash flows used

to determine the value in use or FVLCOD of property, plant and equipment and goodwill are inherently uncertain and

could materially change over time. They are significantly affected by a number of factors including reserves and

production estimates, together with economic factors such as the gold and copper prices, discount rates, foreign

currency exchange rates, inflation rates, resource valuations (determined based on comparable market transactions),

estimates of costs to produce reserves and future capital expenditure.

The Group generally used FVLCOD to determine the recoverable amount of each CGU.

Accounting policies continued

1.Basis of preparation continued

Significant assumptions used in the Group’s impairment assessments (FVLCOD calculations) include:


	2023	2022	2021

US$ Gold price per ounce – year 1	US$1,910	US$1,740	US$1,750
US$ Gold price per ounce – year 2	US$1,875	US$1,730	US$1,700
US$ Gold price per ounce – year 3	US$1,800	US$1,700	US$1,600
US$ Gold price per ounce – year 4	US$1,760	US$1,650	US$1,550
US$ Gold price per ounce – year 5 onwards	US$1,720	US$1,620	US$1,550
Rand Gold price per kilogram – year 1	R1,110,000	R925,000	R875,000
Rand Gold price per kilogram – year 2	R1,060,000	R925,000	R870,000
Rand Gold price per kilogram – year 3	R1,030,000	R925,000	R810,000
Rand Gold price per kilogram – year 4	R1,020,000	R900,000	R780,000
Rand Gold price per kilogram – year 5 onwards	R990,000	R875,000	R780,000
A$ Gold price per ounce – year 1	A$2,830	A$2,500	A$2,400
A$ Gold price per ounce – year 2	A$2,690	A$2,400	A$2,300
A$ Gold price per ounce – year 3	A$2,570	A$2,350	A$2,150
A$ Gold price per ounce – year 4	A$2,500	A$2,250	A$2,070
A$ Gold price per ounce – year 5 onwards	A$2,430	A$2,200	A$2,070
US$ Copper price per tonne – year 1	US$8,500	US$7,700	US$8,700
US$ Copper price per tonne – year 2	US$8,700	US$8,150	US$8,000
US$ Copper price per tonne – year 3	US$8,900	US$8,150	US$7,700
US$ Copper price per tonne – year 4	US$8,600	US$8,150	US$7,500
US$ Copper price per tonne – year 5 onwards	US$8,400	US$7,700	US$7,500
Resource value per ounce (used to calculate the value beyond proved and probable reserves)
•Ghana (with infrastructure)	US$79	US$71	US$187
•Peru (with infrastructure)1	N/A	US$30	US$10
•Chile (without infrastructure)	US$40	US$29	US$70
Discount rates
•South Africa – nominal	16.8%	16.3%	14.3%
•Ghana – real	13.5%	15.9%	8.3%
•Peru – real	7.7%	8.1%	4.8%
•Australia – real	6.2%	6.3%	3.8%
•Chile – real	8.9%	9.1%	5.9%
Inflation rate – South Africa2	4.5%	5.4%	5.4%
Life-of-mine
•South Deep	73 years	74 years	80 years
•Tarkwa	12 years	13 years	14 years
•Damang	2 years	3 years	4 years
•Cerro Corona	7 years	8 years	9 years
•St Ives	8 years	8 years	9 years
•Agnew	5 years	5 years	6 years
•Granny Smith	11 years	10 years	11 years
•Gruyere	9 years	11 years	12 years
•Salares Norte	10 years	10 years	11 years

1 During 2023, the resource in Peru was derecognised as a result of the life-of-mine sterilising the resource through the deposition of in-pit tailings

from 2026 onward. Refer note 7 for further details.

2Due to the availability of unredeemed capital for tax purposes over several years into the life of the South Deep mine, nominal cash flows are used

for South Africa. In order to determine nominal cash flows in South Africa, costs are inflated by the current South African inflation rate. Cash flows

for all other operations are in real terms and as a result are not inflated.


	2023	2022	2021

Long-term exchange rates
US$/ZAR – year 1	18.08	16.53	15.55
US$/ZAR – year 2	17.58	16.63	15.92
US$/ZAR – year 3	17.80	16.92	15.75
US$/ZAR – year 4	18.03	16.97	15.65
US$/ZAR – year 5 onwards	17.90	16.80	15.65
A$/US$ – year 1	0.67	0.70	0.75
A$/US$ – year 2	0.70	0.72	0.74
A$/US$ – year 3	0.70	0.72	0.73
A$/US$ – year 4	0.70	0.73	0.75
A$/US$ – year 5 onwards	0.71	0.74	0.75

The FVLCOD calculations are sensitive to the gold and copper price assumptions and an increase or decrease in the

gold or copper price could materially change the FVLCOD. Should there be a significant decrease in the gold or

copper price, the Group would take actions to assess the implications on the life-of-mine plans, including the

determination of reserves and resources and the appropriate cost structure for the CGUs. Refer to notes 7 and 16 for

further details.

The carrying amount of property, plant and equipment at 31 December 2023 was US$5,074.4 million (2022:

US$4,815.7 million). An impairment of US$156.2 million (2022: $63.1 million) was recognised in respect of the Cerro

Corona CGU for the year ended 31 December 2023. An impairment of US$nil (2022: $325.2 million) was recognised

in respect of the Tarkwa CGU for the year ended 31 December 2023.

Commencement of commercial levels of production

The Group assesses the stage of each mine construction project to determine when a mine moves into the

production stage. The criteria used to assess the start date are determined based on the unique nature of each mine

construction project. The Group considers various relevant criteria to assess when the mine is substantially complete,

ready for its intended use and moves into the production stage. Some of the criteria would include, but are not

limited to the following:

•The level of capital expenditure compared to the construction cost estimates;

•Ability to produce metal in saleable form (within specifications); and

•Ability to sustain commercial levels of production of metal.

When a mine construction project moves into the production stage, the capitalisation of certain mine construction

costs ceases and costs are either regarded as inventory or expensed, except for capitalisable costs related to mining

asset additions or improvements, underground mine development, deferred stripping activities or ore reserve

development.

Gold may be produced while bringing a mine to the condition necessary for it to be capable of operating as intended

by management. The Group recognises the proceeds from selling gold as revenue and the associated production

cost as cost of sales in profit or loss. The Group measures the cost of gold produced applying the measurement

requirements of IAS 2 at normalised production levels using the life-of-mine planned production. Production costs in

excess of normal production up to reaching commercial levels of production are capitalised as property, plant and

equipment.

Salares Norte was still under construction at 31 December 2023 and first gold is expected to be achieved in April 2024.

Stockpiles, gold in process and product inventories

Costs that are incurred in or benefit the productive process are accumulated as stockpiles, gold in process, ore on

leach pads and product inventories. Net realisable value tests are performed on a monthly basis for short-term

stockpiles, gold in process and product inventories and at least annually for long-term stockpiles and represent the

estimated future sales price of the product based on prevailing spot metals prices at the reporting date, less

estimated costs to complete production and bring the product to sale. If any inventories are expected to be realised

in the long term, estimated future sales prices are used for valuation purposes.

Stockpiles are measured by estimating the number of tonnes added and removed from the stockpile, the number of

contained gold ounces based on assay data, and the estimated recovery percentage based on the expected

processing method. Stockpile tonnages are verified by periodic surveys.

Accounting policies continued

1.Basis of preparation continued

Stockpiles, gold in process and product inventories

Although the quantities of recoverable metal are reconciled by comparing the grades of ore to the quantities of

metals actually recovered (metallurgical balancing), the nature of the process inherently limits the ability to precisely

monitor the recoverability levels. As a result, the metallurgical balancing process is constantly monitored and

engineering estimates are refined based on actual results over time.

Variations between actual and estimated quantities resulting from changes in assumptions and estimates that do not

result in write downs to net realisable value are accounted for on a prospective basis.

Refer to notes 2 and 22 for further details.

The carrying amount of total gold in process and stockpiles (non-current and current) at 31 December 2023 was

US$814.6 million (2022: US$725.7 million).

During 2023, a net realisable value adjustment to stockpiles of US$33.8 million (2022: US$nil and 2021: US$nil) was

processed at Damang.

Carrying value of equity-accounted investees

The Group reviews and tests the carrying value of equity-accounted investees annually or when events or changes

in circumstances suggest that the carrying amount may not be recoverable by comparing the recoverable amounts

to these carrying values. If there are indications that impairment may have occurred, estimates are prepared of the

recoverable amount of the equity-accounted investee. The recoverable amounts are determined based on the

higher of value in use or FVLCOD. The FVLCOD is determined using the following methods:

•Using quoted market prices of other investors in the equity-accounted investee with appropriate adjustments

in order to derive the fair value; and

•A combination of the income and market approach. The income approach is based on the expected future cash

flows of the operations and the market approach is used to determine the value beyond proved and probable

reserves for the operation, using comparable market transactions.

Expected future cash flows used to determine the FVLCOD of equity-accounted investees are inherently uncertain

and could materially change over time. They are significantly impacted by a number of factors including reserves and

production estimates, together with economic factors such as gold and copper prices, discount rates, foreign

currency exchange rates, resource valuations (determined based on comparable market transactions or other

accepted valuation methods), estimates of costs to produce reserves and future capital expenditure. The key

assumptions used in the income and market approach for Asanko are as follows:


	2023	2022

US$ Gold price per ounce – year 1 to 3	US$1,800 – US$1,910	US$1,650 – US$1,740
US$ Gold price per ounce – year 4 onwards	US$1,720	US$1,620
Discount rates – real	19.9%	19.3%
Life-of-mine	7 years	6 years

The FVLCOD calculations are sensitive to the gold price assumption and the quoted market prices, a decrease or

increase in these two assumptions could materially change the FVLCOD.

On 21 December 2023, Gold Fields announced the divestment of its 45% shareholding in Asanko Gold (both the

preference shares and equity-accounted investee) to the joint venture partner Galiano Gold. As a result the sale

transaction, the investment in Asanko has been classified as an asset held for sale and the investment is required to

be measured at the lower of carrying value or fair value less costs to sell. Management determined the fair value less

costs to sell based on the consideration to be received per the sale agreement. The fair value has been allocated

first to the Asanko redeemable preference shares based on the fair value of the preference shares using the

expected redemption period. The residual amount after deducting the fair value of the preference shares from the

total fair value of the consideration was allocated to the Asanko equity-accounted investee, which resulted in an

impairment of US$46.9 million (2022: US$nil) for the year ended 31 December 2023. Refer note 14 for the

assumptions used in the determination of the fair values.

On 2 May 2023, Gold Fields, through a 100% held Canadian subsidiary, acquired a 50% interest in the Windfall

Project in Québec, Canada from Osisko Mining Incorporated. The Group has classified its interest in the Windfall

Project as a joint venture. Refer note 17 for key assumptions used in the valuation of the Windfall Project contingent

and exploration considerations.

Carrying value of equity-accounted investees

Refer to notes 14, 15, 17 and 18 for further details.

The carrying amount of equity-accounted investees at 31 December 2023 was US$548.6 million (2022: US$84.9 million)

Provision for environmental rehabilitation costs

The Group’s mining and exploration activities are subject to various laws and regulations governing the protection of

the environment. The Group recognises management’s best estimate for the provision of environmental rehabilitation

costs in the period in which they are incurred. Actual costs incurred in future periods could differ materially from the

estimates. Additionally, future changes to environmental laws and regulations, life-of-mine estimates and discount

rates could affect the carrying amount of this provision.

Refer to note 28.1 for details of key assumptions used to estimate the provision.

The carrying amounts of the provision for environmental rehabilitation costs at 31 December 2023 was

US$452.9 million (2022: US$387.7 million) of which US$46.8 million (2022: US$17.2 million) was classified

as current and US$406.1 million (2022: US$370.5 million) as non-current.

Provision for silicosis settlement costs

The Group has an obligation in respect of a settlement of the silicosis class action claims and related costs. The

Group recognises management’s best estimate for the provision of silicosis settlement costs.

The ultimate outcome of this matter however remains uncertain, with the number of eligible workers successfully

submitting claims and receiving compensation being uncertain. The provision is consequently subject to adjustment

in the future.

Refer to notes 28.3 and 38 for further details.

The carrying amounts of the provision for silicosis settlement costs at 31 December 2023 was US$5.1 million

(2022: US$10.5 million) of which US$0.2 million (2022: US$1.3 million) was classified as current and US$4.9 million

(2022: US$9.2 million) as non-current.

Income taxes

The Group is subject to income taxes in numerous jurisdictions. Significant judgement is required in determining the

liability for income taxes due to the complexity of legislation. There are many transactions and calculations for which

the ultimate tax determination is uncertain during the ordinary course of business. The Group recognises liabilities for

anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome

of these matters is different from the amounts that were initially recorded, such differences will impact income tax and

deferred tax in the period in which such determination is made. Refer note 10 for further details.

The Group recognises the future tax benefits related to deferred income tax assets to the extent that it is probable

that the deductible temporary differences will reverse in the foreseeable future. Assessing the recoverability of

deferred income tax assets requires the Group to make significant estimates related to expectations of future taxable

income. Estimates of future taxable income are based on forecast cash flows from operations and the application of

existing tax laws in each jurisdiction. To the extent that future cash flows and taxable income differ significantly from

estimates, the ability of the Group to realise the net deferred tax assets recorded at the reporting date could be

impacted.

Additionally, future changes in tax laws in the jurisdictions in which the Group operates could limit the ability of the

Group to obtain tax deductions in future periods.

Refer to notes 26 and 34 for further details.

Carrying values at 31 December 2023:

•Deferred taxation liability: US$389.3 million (2022: US$399.8 million);

•Deferred taxation asset: US$172.2 million (2022: US$195.5 million);

•Taxation payable: US$95.7 million (2022: US$53.6 million); and

•Taxation receivable: US$82.1 million (2022: US$76.0 million).

Refer to note 10 for details of unrecognised deferred tax assets.

Accounting policies continued

1.Basis of preparation continued

Share-based payments

The Group issues equity-settled share-based payments to Executive Directors, certain officers and employees. The

fair value of these instruments is measured at grant date, using the Monte Carlo simulation valuation models, which

require assumptions regarding the estimated term of the option, share price volatility and expected dividend yield.

While Gold Fields’ management believes that these assumptions are appropriate, the use of different assumptions

could have an impact on the fair value of the option granted and the related recognition of the share-based

payments expense in the consolidated income statement. Gold Fields’ options have characteristics significantly

different from those of traded options and therefore fair values may also differ.

Refer to note 5 for further details.

The income statement charge for the year ended 31 December 2023 was US$9.1 million (2022: US$6.9 million and

2021: US$12.7 million).

Long-term incentive plan

The Group issues awards relating to its long-term incentive plan to certain employees. These awards are measured

on the date the award is made and re-measured at each reporting period. The portion of the award subject to

judgement is measured using the Monte Carlo simulation valuation model, which requires assumptions regarding the

share price volatility and expected dividend yield. The assumptions, supporting the estimated amount expected to

be paid, are reviewed at each reporting date. While Gold Fields’ management believes that these assumptions are

appropriate, the use of different assumptions could have an impact on the measurement of the awards and the

related recognition of the compensation expense in profit or loss.

Refer to note 29 for inputs used in the Monte Carlo simulation valuation model and for further details.

The charge for the year ended 31 December 2023 was US$55.8 million (2022: US$29.0 million and 2021:

US$28.5 million) and the balance at 31 December 2023 of the long-term cash incentive provision was

US$78.9 million (2022: US$53.0 million) of which US$38.4 million (2022: US$30.6 million) was classified as current

and US$40.5 million (2022: US$22.4 million) as non-current.

Financial instruments

Derivative financial instruments

The estimated fair value of financial instruments is determined at reporting date, based on the relevant market

information. The fair value is calculated with reference to market rates using industry valuation techniques and

appropriate models.

At 31 December 2023 and 2022, the carrying value of derivative financial instruments were US$nil as all hedges

matured. The income statement charge was US$nil (2022: gain of US$24.0 million and 2021: loss of US$100.4 million)

for the year ended 31 December 2023.

Refer note 41 for further details.

Asanko redeemable preference shares

Significant judgement is required in estimating life-of-mine cash flows used in determining the expected timing of the

cash flows for the repayment of the redeemable preference shares.

In order to estimate the life-of-mine model used in the valuation, estimates and assumptions are required about a

range of geological, technical and economic factors, including but not limited to quantities, grades, production

techniques, recovery rates, production costs, capital expenditure, transport costs, commodity demand, commodity

prices and exchange rates. Refer to the gold prices disclosed for the Asanko equity-accounted investee on page 98

and note 20 for key assumptions used.

The life-of-mine cash flows are sensitive to the gold price assumptions and an increase or decrease in the gold price

could materially change the valuations.

During 2023, the fair value of Asanko redeemable preference shares was written-up by US$33.0 million (2022:

written-down by US$37.3 million).

The fair value of the Asanko redeemable preference shares at 31 December 2023 was US$99.7 million (2022:

US$60.3 million). The Asanko redeemable preference shares were classified as held for sale at 31 December 2023.

Refer notes 14 and 15 for further details.

Contingencies

By their nature, contingencies will only be resolved when one or more future events occur or fail to occur. The

assessment of such contingencies inherently involves the exercise of significant judgement and estimates of the

outcome of future events. Such contingencies include, but are not limited to, environmental obligations, litigation,

regulatory proceedings, tax matters and losses resulting from other events and developments.

When a loss is considered probable and reasonably estimable, a liability is recorded based on the best estimate of

the ultimate loss. The likelihood of a loss with respect to a contingency can be difficult to predict and determining a

meaningful estimate of the loss or a range of losses may not always be practicable based on the information

available at the time and the potential effect of future events and decisions by third parties that will determine the

ultimate resolution of the contingency. It is not uncommon for such matters to be resolved over many years, during

which time relevant developments and new information is continuously evaluated to determine both the likelihood of

any potential loss and whether it is possible to reasonably estimate a range of possible losses. When a loss is

probable but a reasonable estimate cannot be made, disclosure is provided.

Refer to note 38 for details on contingent liabilities.

2.Consolidation

2.1Business combinations

The acquisition method of accounting is used to account for business combinations by the Group. The consideration

transferred for the acquisition of a business is the fair value of the assets transferred, the liabilities incurred and the

equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability

resulting from a contingent consideration arrangement. Acquisition-related costs are expensed as incurred, other

than those associated with the issue of debt or equity securities. Identifiable assets acquired and liabilities and

contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition

date. On an acquisition-by-acquisition basis, the Group recognises any non-controlling interest in the acquiree either

at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net identifiable assets.

Subsequently, the carrying amount of non-controlling interest is the amount of the interest at initial recognition plus

the non-controlling interest’s share of the subsequent changes in equity.

The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the

acquisition date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net

assets acquired is recorded as goodwill. If this is less than the fair value of the net assets of the subsidiary acquired,

the difference is recognised directly in profit or loss.

If a transaction does not meet the definition of a business under IFRS Accounting Standards, the transaction is

recorded as an asset acquisition. Accordingly, the identifiable assets acquired and liabilities assumed are measured

at the fair value of the consideration paid, based on their relative fair values at the acquisition date. Acquisition-

related costs are included in the consideration paid and capitalised. Any contingent consideration payable that is

dependent on the purchaser’s future activity is not included in the consideration paid until the activity requiring the

payment is performed. Any resulting future amounts payable are recognised in profit or loss when incurred. No

goodwill and no deferred tax asset or liability arising from the assets acquired and liabilities assumed are recognised

upon the acquisition of assets.

2.2Subsidiaries

Subsidiaries are all entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights

to, variable returns from its involvement with the entity and has the ability to affect those returns through its power

over the relevant activities of the entity. Subsidiaries are fully consolidated from the date on which control is

transferred to the Group until the date on which control ceases.

Inter-company transactions, balances and unrealised gains and losses on transactions between Group companies

are eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with

the policies adopted by the Group.

2.3Transactions with non-controlling interests

The Group treats transactions with non-controlling interests that do not result in loss of control as transactions with

equity owners of the Group. For purchases from non-controlling interests, the difference between any consideration

paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains

or losses on disposals to non-controlling interests are also recorded in equity.

Accounting policies continued

1.Basis of preparation continued

2.4Equity-accounted investees

The Group’s interests in equity-accounted investees comprise interests in associates and joint ventures.

Associates are those entities in which the Group has significant influence, but not control or joint control, over the

financial and operating policies. Joint ventures are arrangements in which the Group has joint control, whereby the

Group has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities.

Interests in associates and joint ventures are accounted for using the equity method. They are recognised initially at

cost, which includes transaction costs and an estimate of any contingent and other considerations. Subsequent to

initial recognition and until the date on which significant influence or joint control ceases, the consolidated financial

statements include the Group’s share of the profit or loss and other comprehensive income of equity-accounted

investees, as well changes in the contingent and other considerations.

Results of associates and joint ventures are equity-accounted using the results of their most recent financial

information. Any losses from associates or joint ventures are brought to account in the consolidated financial

statements until the interest in such associates or joint ventures is written down to zero. Thereafter, losses are

accounted for only insofar as the Group is committed to providing financial support to such associates or joint

ventures.

The carrying value of an investment in associate and joint ventures represents the cost of the investment, including

goodwill where relevant, a share of the post-acquisition retained earnings and losses, any other movements in

reserve, any accumulated impairment losses, changes in value of the contingent and other considerations and other

adjustments to align with Gold Fields accounting policies. The Group applies IFRS 9 to long-term interests in an

associate or joint venture that form part of the net investment in the associate or joint venture but to which the equity

method is not applied. The carrying value is assessed annually for existence of indicators of impairment and if such

exist, the carrying amount is compared to the recoverable amount, being the higher of value in use or fair value less

cost of disposal. If an impairment in value has occurred, it is recognised in profit or loss in the period in which the

impairment arose.

2.5Joint operations

A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to

the use of assets and obligations for the liabilities of the arrangement. The Group accounts for activities under joint

operations by recognising in relation to the joint operation, the assets it controls and the liabilities it incurs, the

expenses it incurs and the revenue from the sale or use of its share of the joint operations’ output.

3.Foreign currencies

3.1Functional and presentation currency

Items included in the financial statements of each of the Group entities are measured using the currency of the

primary economic environment in which the entity operates (“the functional currency”). The consolidated financial

statements are presented in US Dollar, which is the Group’s presentation currency. The functional currency of the

parent company is South African Rand.

3.2Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the

dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions,

and from the translation of monetary assets and liabilities denominated in foreign currencies, are recognised in profit

or loss.

3.3Foreign operations

The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary

economy) that have a functional currency different from the presentation currency are translated into the

presentation currency as follows:

Assets and liabilities are translated at the exchange rate ruling at the reporting date (ZAR/US$: 18.30; US$/A$: 0.68;

US$/C$: 0.75 (2022: ZAR/US$: 17.02; US$/A$: 0.69 and 2021: ZAR/US$: 15.94; US$/A$: 0.73)). Equity items are

translated at historical rates. The income and expenses are translated at the average exchange rate for the year

(ZAR/US$: 18.45; US$/A$: 0.66; US$/C$: 0.74 (2022: ZAR/US$: 16.37; US$/A$: 0.68 and 2021: ZAR/US$: 14.79; US$/

A$: 0.75)), unless this average was not a reasonable approximation of the rates prevailing on the transaction dates, in

which case these items were translated at the rate prevailing on the date of the transaction. Exchange differences on

translation are accounted for in other comprehensive income. These differences will be recognised in profit or loss

upon realisation of the underlying operation.

3.3Foreign operations continued

On consolidation, exchange differences arising from the translation of the net investment in foreign operations (i.e.

the reporting entity’s interest in the net assets of that operation), and of borrowings and other currency instruments

designated as hedges of such investments, are taken to other comprehensive income. When a foreign operation is

sold, exchange differences that were recorded in other comprehensive income are recognised in profit or loss as

part of the gain or loss on disposal. If the Group disposes of part of its interest in a subsidiary but retains control, then

the relevant proportion of the cumulative amount is re-attributed to non-controlling interests. When the Group

disposes of only part of an associate or joint venture while retaining significant influence or joint control, the relevant

proportion of the cumulative amount is reclassified to profit or loss.

Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and

liabilities of the foreign operation and are translated at each reporting date at the closing rate.

4.Property, plant and equipment

4.1Mine development and infrastructure

Mining assets, including mine development and infrastructure costs and mine plant facilities, are recorded at cost less

accumulated depreciation and accumulated impairment losses.

Expenditure incurred to evaluate and develop new orebodies, to define mineralisation in existing orebodies and to

establish or expand productive capacity, is capitalised until commercial levels of production are achieved, at which

times the costs are amortised as set out below.

Development of orebodies includes the development of shaft systems and waste rock removal that allows access to

reserves that are economically recoverable in the future. Subsequent to this, costs are capitalised if the criteria for

recognition as an asset are met.

4.2Borrowing costs

Borrowing costs incurred in respect of assets requiring a substantial period of time to prepare for their intended

future use are capitalised to the date that the assets are substantially completed.

Borrowing costs capitalised are included in finance expense and adjusted for in cash generated from operating

activities in the statement of cash flows.

4.3Mineral and surface rights

Mineral and surface rights are recorded at cost less accumulated amortisation and accumulated impairment losses.

When there is little likelihood of a mineral right being exploited, or the recoverable amount of mineral rights has

diminished below cost, an impairment loss is recognised in profit or loss in the year that such determination is made.

4.4Land

Land is shown at cost and accumulated impairment losses and is not depreciated.

4.5Other assets

Non-mining assets are recorded at cost less accumulated depreciation and accumulated impairment losses. These

assets include the assets of the mining operations not included in mine development and infrastructure, borrowing

costs, mineral and surface rights and land and all the assets of the non-mining operations.

4.6Amortisation and depreciation of mining assets

Amortisation and depreciation is determined to give a fair and systematic charge to profit or loss taking into account

the nature of a particular ore body and the method of mining that ore body. To achieve this, the following calculation

methods are used:

•Mining assets, including mine development and infrastructure costs, mine plant facilities and evaluation costs, are

amortised over the life of the mine using the units-of-production method, based on estimated proved and probable

ore reserves;

•Stripping activity assets are amortised on a units-of-production method, based on the estimated proved and

probable ore reserves of the ore body to which the assets relate; and

•The mineral rights asset at the Australian operations are divided at the respective operations into a depreciable

and a non-depreciable component. The mineral rights asset is initially capitalised to the mineral rights asset as a

non-depreciable component.

Subsequently, and on an annual basis, as part of the preparation of the updated reserve and resource statement and

preparation of the updated life-of-mine plan, a portion of resources will typically be converted to reserves as a result

of ongoing resource definition drilling, resultant geological model updates and subsequent mine planning. Based on

this conversion of resources to reserves a portion of the historic cost is allocated from the non-depreciable

component of the mineral rights asset to the depreciable component of the mineral rights asset. Therefore, the

category of non-depreciable mineral rights asset is expected to reduce and will eventually be fully allocated within

the depreciable component of the mineral rights asset.

Accounting policies continued

1.Basis of preparation continued

4.6Amortisation and depreciation of mining assets continued

Each operation typically comprises a number of mines and the depreciable component of the mineral rights asset is

therefore allocated on a mine-by-mine basis at the operation and is transferred at this point to mine development

and infrastructure and is then amortised over the estimated proved and probable ore reserves of the respective mine

on the units-of-production method. The remaining non-depreciable component of the mineral rights asset is not

amortised but, in combination with the depreciable component of the mineral rights asset and other assets included

in the CGU, is evaluated for impairment when events and changes in circumstances indicate that the carrying amount

may not be recoverable.

Proved and probable ore reserves reflect estimated quantities of economically recoverable reserves, which can be

recovered in future from known mineral deposits.

Certain mining plant and equipment included in mine development and infrastructure is depreciated on a straight-line

basis over the lesser of their estimated useful lives or life-of-mine.

4.7Depreciation of non-mining assets

Non-mining assets are recorded at cost and depreciated on a straight-line basis over their current expected useful

lives to their residual values. The assets’ useful lives, depreciation methods and residual values are reassessed at

each reporting date and adjusted if appropriate.

4.8Depreciation of right-of-use assets

The right-of-use assets are depreciated over the shorter of the lease term and the useful life of the right-of-use asset,

using the straight-line method from the commencement date to the end of the lease term, unless the lease transfers

ownership of the underlying asset to the Group by the end of the lease term or the cost of the right-of-use asset

reflects that the Group will exercise a purchase option. In that case the right-of-use assets are depreciated over the

useful life of the underlying asset. In addition, the right-of-use asset is periodically reduced by impairment losses, if

any, and adjusted for certain re-measurements of the lease liability.

4.9Mining exploration

Expenditure on advances solely for exploration activities is charged against profit or loss until the viability of the

mining venture has been proven. Expenditure incurred on exploration “farm-in” projects is written off until an

ownership interest has vested. Exploration expenditure to define mineralisation at existing ore bodies is considered

mine development costs and is capitalised until commercial levels of production are achieved.

Exploration activities at certain of the Group’s non-South African operations are broken down into defined areas

within the mining lease boundaries. These areas are generally defined by structural and geological continuity.

Exploration costs in these areas are capitalised to the extent that specific exploration programmes have yielded

targets and/or results that warrant further exploration in future years.

4.10Impairment

Recoverability of the carrying values of long-term assets or CGUs of the Group are reviewed annually or whenever

events or changes in circumstances indicate that such carrying values may not be recoverable. To determine

whether a long-term asset or CGU may be impaired, the higher of “value in use” (defined as: “the present value of

future cash flows expected to be derived from an asset or CGU”) or “fair value less costs of disposal” (defined as

“the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between

market participants at the measurement date”) is compared to the carrying value of the asset/CGU. Impairment losses

are recognised in profit or loss.

A CGU is defined by the Group as the smallest identifiable group of assets that generates cash inflows that are

largely independent of the cash inflows from other assets or groups of assets. Generally for the Group this

represents an individual operating mine, including mines which are part of a larger mine complex. The costs

attributable to individual shafts/pits of a mine are impaired if the shaft/pit is closed/depleted.

Exploration targets in respect of which costs have been capitalised at certain of the Group’s international operations

are evaluated on an annual basis to ensure that these targets continue to support capitalisation of the underlying

costs. Those that do not are impaired.

When any infrastructure is closed down during the year, any carrying value attributable to that infrastructure is

impaired.

4.11Gain or loss on disposal of property, plant and equipment

Any gain or loss on disposal of property, plant and equipment (calculated as the net proceeds from disposal less the

carrying amount of the item) is recognised in profit or loss.

4.12Leases

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains,

a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for

a consideration.

The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use

asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease

payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs

to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less

any lease incentives received. Subsequent to initial recognition, the right-of-use asset is accounted for in accordance

with the accounting policy applicable to that asset.

The lease liability is initially measured at the present value of the lease payments that are not paid at the

commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily

determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as

the discount rate.

The Group determines its incremental borrowing rate by obtaining interest rates from various external financing

sources and makes certain adjustments to reflect the terms of the lease and type of the asset leased.

Subsequent to initial recognition, the lease liability is measured at amortised cost using the effective interest rate

method. It is re-measured when there is a change in future lease payments:

•If there is a change in the Group’s estimate of the amount expected to be payable under a residual value

guarantee;

•If the Group changes its assessment of whether it will exercise a purchase, extension or termination option;

•If there is a revised in-substance fixed lease payment; and

•If there is a change in future lease payments resulting from a change in an index or a rate used to determine these

payments.

When the lease liability is re-measured in this way, a corresponding adjustment is made to the carrying amount of

the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been

reduced to zero.

The Group has elected not to recognise right-of-use assets and lease liabilities for leases of low-value assets and

short-term leases. The Group recognises the lease payments associated with these leases as an expense on a

straight-line basis over the lease term. Low-value assets relate mainly to cellphones, computer equipment and

photocopiers.

4.13Deferred stripping

Production stripping costs in a surface mine are capitalised to property, plant and equipment if, and only if, all of the

following criteria are met:

•It is probable that the future economic benefit associated with the stripping activity will flow to the entity;

•The entity can identify the component of the ore body for which access has been improved; and

•The costs relating to the stripping activity associated with that component can be measured reliably.

If the above criteria are not met, the stripping costs are recognised directly in profit or loss.

The Group initially measures the stripping activity asset at cost, this being the accumulation of costs directly incurred

to perform the stripping activity that improves access to the identified component of ore.

After initial recognition, the stripping activity asset is carried at cost less accumulated amortisation and accumulated

impairment losses.

Accounting policies continued

5.Taxation

Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in profit or loss

except to the extent that it relates to a business combination, or items recognised directly in equity or in other

comprehensive income.

Current tax is measured on taxable income at the applicable statutory rate substantively enacted at the reporting date.

Interest and penalties are accounted for in current tax.

Deferred taxation is provided on temporary differences existing at each reporting date between the tax values of

assets and liabilities and their carrying amounts. Substantively enacted tax rates are used to determine future

anticipated tax rates which in turn are used in the determination of deferred taxation.

Deferred taxation is not recognised for temporary differences on the initial recognition of assets or liabilities in a

transaction that is not a business combination and that affects neither accounting nor taxable profit or loss and

taxable temporary differences arising on the initial recognition of goodwill.

The measurement of deferred tax reflects the tax consequences that would follow the manner in which the Group

expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

These temporary differences are expected to result in taxable or deductible amounts in determining taxable profits

for future periods when the carrying amount of the asset is recovered or the liability is settled.

Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax liabilities are

recognised for taxable temporary differences arising on investments in subsidiaries and equity-accounted investees

except where the reversal of the temporary difference can be controlled and it is probable that the difference will not

reverse in the foreseeable future.

Deferred tax assets relating to the carry forward of unutilised tax losses and/or deductible temporary differences are

recognised to the extent it is probable that future taxable profit will be available against which the unutilised tax

losses and/or deductible temporary differences can be recovered. Deferred tax assets are reviewed at each

reporting date and are adjusted if recovery is no longer probable.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and

assets, and they relate to taxes levied by the same tax authority on the same taxable entity, or on different tax

entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will

be realised simultaneously.

When assessing uncertain tax positions, the Group considers whether it is probable that the relevant authority will

accept each tax treatment, or group of tax treatments, that the Group used or plans to use in its income tax filing.

Except for Tarkwa, Damang and Cerro Corona, no provision is made for any potential taxation liability on the

distribution of retained earnings by Group companies as it is probable that the related taxable temporary differences

will not reverse in the foreseeable future.

6.Inventories

Inventories are valued at the lower of cost and net realisable value. Gold on hand represents production on hand

after the smelting process.

Cost is determined on the following basis:

•Gold on hand and gold in process is valued using weighted average cost. Cost includes production, amortisation

and related administration costs;

•Heap leach and stockpile inventories are valued using weighted average cost. Cost includes production,

amortisation and direct administration costs. The cost of materials on the heap leach and stockpiles, from which

metals are expected to be recovered in a period longer than 12 months is classified as non-current assets; and

•Consumable stores are valued at weighted average cost, after appropriate provision for redundant and slow-

moving items.

Net realisable value is determined with reference to relevant market prices or the estimated future sales price of the

product if it is expected to be realised in the long term.

7.Financial instruments

7.1Non-derivative financial instruments

Recognition and initial measurement

Trade receivables are initially recognised when they are originated. All other financial assets and financial liabilities

are initially recognised when the Group becomes a party to the contractual provisions of the instrument. A financial

asset or financial liability is initially measured at fair value plus, for an item not at fair value through profit or loss

(“FVTPL”), transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a

significant financing component is initially measured at the transaction price.

Classification and subsequent measurement

Financial assets – Classification policy

On initial recognition, an equity instrument is either classified as fair value through other comprehensive income

(“FVOCI”) if an irrevocable election is made or FVTPL.

On initial recognition, a debt instrument is classified as:

•Amortised cost;

•FVOCI; or

•FVTPL.

A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as

at FVTPL:

•It is held with a business model whose objective is to collect contractual cash flows; and

•Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest

on the principal amount outstanding.

An investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

•It is held with a business model whose objective is achieved by both collecting contractual cash flows and selling

financial assets; and

•Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest

on the principal amount outstanding.

All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at

FVTPL. This includes all derivative financial assets.

Financial assets – Measurement policy


Financial asset category		Description
Financial assets at amortised cost		These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss.
Equity investments at FVOCI		These assets are subsequently measured at fair value. Dividends are recognised as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognised in OCI and are never reclassified to profit or loss.
Financial assets at FVTPL		These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in profit or loss.

Financial assets – Classification of financial assets

The following information is considered by the Group in determining the classification of financial assets:

•The Group’s business model for managing financial assets; and

•The contractual cash flow characteristics of the financial assets.

Accounting policies continued

7.Financial instruments continued

7.1Non-derivative financial instruments continued

Financial assets – Classification of financial assets continued

The business model assessment of the financial assets is based on the Group’s strategy and rationale for holding the

financial assets on a portfolio level. When considering the strategy, the following is considered:

•Whether the financial assets are held to collect contractual cash flows;

•Whether the financial assets are held for sale; and

•Whether the financial assets are held for both collecting contractual cash flows and to be sold.

Financial assets – Assessment of contractual cash flows

In assessing whether the contractual cash flows are solely payments of principal and interest, the Group considers

the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual

term that could change the timing or amount of contractual cash flows such that it would not meet this condition.

Financial liabilities – Classification, subsequent measurement and gains and losses

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL

if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities

at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in

profit or loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest

method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on

derecognition is also recognised in profit or loss.

Impairment

The Group recognises loss allowances for expected credit losses (“ECLs”) on financial assets measured at amortised

cost. When determining whether the credit risk of a financial asset has increased significantly since initial recognition

and when estimating ECLs, the Group considers reasonable and supportable information that is relevant and

available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based

on the Group’s historical experience and informed credit assessment and including forward-looking information. The

maximum period considered when estimating ECLs is the maximum contractual period over which the Group is

exposed to credit risk.

ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash

shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash

flows that the Group expects to receive). At each reporting date, the Group assesses whether financial assets carried

at amortised cost are credit impaired. A financial asset is “credit impaired” when one or more events that have a

detrimental impact on the estimated future cash flows of the financial asset have occurred.

Derecognition of financial instruments

The Group derecognises a financial asset when the contractual rights to the cash flows from the financial asset

expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the

risks and rewards of ownership of the financial asset are transferred or in which the Group neither transfers nor

retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The Group derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire.

The Group also derecognises a financial liability when its terms are modified and the cash flows of the modified

liability are substantially different, in which case a new financial liability based on the modified terms is recognised at

fair value. On derecognition of a financial liability, the difference between the carrying amount extinguished and the

consideration paid (including any non-cash assets transferred or liabilities assumed) is recognised in profit or loss.

7.1.1Investments

Investments comprise listed and unlisted equity instruments and listed bonds which are designated at FVOCI and are

accounted for at fair value, with unrealised gains and losses subsequent to initial recognition recognised in other

comprehensive income and included in other reserves. Profit or loss realised when investments are sold or impaired

are never reclassified to profit or loss.

Purchases and sales of investments are recognised on the trade date, which is the date that the Group commits to

purchase or sell the asset. Cost of purchase includes transaction costs. The fair value of listed investments is based

on quoted bid prices.

On disposal or impairment of financial assets classified at FVOCI, cumulative unrealised gains and losses previously

recognised in other comprehensive income are included in determining the profit or loss on disposal, or the

impairment charge relating to, that financial asset, respectively, which is recognised in other comprehensive income.

7.1.2Cash and cash equivalents

Cash comprises cash on hand and demand deposits and cash equivalents are short-term, highly liquid investments

readily convertible to known amounts of cash and subject to insignificant risk of changes in value and are measured

at amortised cost which is deemed to be fair value as they have a short-term maturity.

Bank overdrafts are included within current liabilities in the statement of financial position and within cash and cash

equivalents in the statement of cash flows.

7.1.3Trade receivables

Trade receivables are carried at amortised cost less ECLs using the Group’s business model for managing its

financial assets, except for trade receivables from provisional copper and gold concentrate. The trade receivables

from provisional copper and gold concentrate sales are carried at fair value through profit or loss and are marked-to-

market at the end of each period until final settlement occurs, with changes in fair value classified as provisional price

adjustments and included as a component of revenue.

7.1.4Environmental trust funds

The environmental trust funds comprise mainly term deposits which are recognised at amortised cost less ECLs

using the Group’s business model for managing its financial assets.

7.1.5Trade payables

Trade payables are recognised at amortised cost using the effective interest method.

7.1.6Borrowings

Borrowings are recognised initially at fair value, net of transaction costs incurred, where applicable and subsequently

measured at amortised cost using the effective interest method.

Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the

liability for at least 12 months after the reporting date.

Interest payable on borrowings is recognised in profit or loss over the term of the borrowings using the effective

interest method. Finance expense comprises interest on borrowings and environmental rehabilitation costs offset by

interest capitalised on qualifying assets.

Cash flows from interest paid are classified under operating activities in the statement of cash flows.

7.2Derivative financial instruments

The Group may from time to time establish currency and/or interest rate and/or commodity financial instruments to

protect underlying cash flows.

Derivative financial instruments are initially recognised at fair value and subsequently re-measured to their fair value

with changes therein recognised in profit or loss.

Accounting policies continued

8.Provisions

Provisions are recognised when the Group has a present legal or constructive obligation resulting from past events

and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation

and a reliable estimate can be made of the amount of the obligation.

9.Provision for environmental rehabilitation costs

Long-term provisions for environmental rehabilitation costs are based on the Group’s environmental management

plans, in compliance with applicable environmental and regulatory requirements.

Rehabilitation work can include facility decommissioning and dismantling, removal or treatment of waste materials,

site and land rehabilitation, including compliance with and monitoring of environmental regulations, security and

other site-related costs required to perform the rehabilitation work and operations of equipment designed to reduce

or eliminate environmental effects.

Full provision is made based on the net present value of the estimated cost of restoring the environmental

disturbance that has occurred up to the reporting date. The unwinding of the obligation is accounted for in profit

or loss.

The estimated costs of rehabilitation are reviewed annually and adjusted as appropriate for changes in legislation,

technology or other circumstances. Cost estimates are not reduced by the potential proceeds from the sale of assets

or from plant clean up at closure.

Changes in estimates are capitalised or reversed against the relevant asset, except where a reduction in the

provision is greater than the remaining net book value of the related asset, in which case the value is reduced to nil

and the remaining adjustment is recognised in profit or loss. In the case of closed sites, changes in estimates and

assumptions are recognised in profit or loss. Estimates are discounted at the pre-tax risk-free rate in the jurisdiction

of the obligation.

Increases due to additional environmental disturbances are capitalised and amortised over the remaining lives of the

mines. These increases are accounted for on a net present value basis.

For the South African and Ghanaian operations, annual contributions are made to a dedicated rehabilitation trust fund

and dedicated bank account, respectively, to fund the estimated cost of rehabilitation during and at the end of the

life-of-mine. The amounts contributed to this trust fund/bank account are included under non-current assets. Interest

earned on monies paid to rehabilitation trust fund/bank account is accrued on a time proportion basis and is

recorded as interest income.

In respect of the South African, Ghanaian and Peruvian operations, bank and other guarantees are provided for

funding of the environmental rehabilitation obligations. Refer to financial instruments accounting policy 7.1.4

Environmental trust fund and note 37 of the consolidated financial statements.

10.Employee benefits

10.1Short-term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the

amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result

of past service provided by the employee and the obligation can be estimated reliably.

10.2Pension and provident funds

The Group operates a defined contribution retirement plan and contributes to a number of industry-based defined

contribution retirement plans. The retirement plans are funded by payments from employees and Group companies.

Contributions to defined contribution funds are recognised as an employee benefit expense in profit or loss in the

periods during which related services are rendered by employees.

10.3Share-based payments

The Group operates an equity-settled compensation plan. The fair value of the equity-settled instruments is

measured by reference to the fair value of the equity instrument granted which in turn is determined using Monte

Carlo simulation models on the date of grant.

Fair value is based on market prices of the equity-settled instruments granted, if available, taking into account the

terms and conditions upon which those equity-settled instruments were granted. Fair value of equity-settled

instruments granted is estimated using appropriate valuation models and appropriate assumptions at grant date.

Non-market vesting conditions (service period prior to vesting) are not taken into account when estimating the fair

value of the equity-settled instruments at grant date. Market conditions are taken into account in determining the fair

value at grant date.

The fair value of the equity-settled instruments is recognised as an employee benefit expense over the vesting

period based on the Group’s estimate of the number of instruments that will eventually vest, with a corresponding

increase in equity. Vesting assumptions for non-market conditions are reviewed at each reporting date to ensure

they reflect current expectations.

Where the terms of an equity-settled award are modified, the originally determined expense is recognised as if the

terms had not been modified. In addition, an expense is recognised for any modification, which increases the total

fair value of the share-based payment arrangement, or is otherwise beneficial to the participant as measured at the

date of the modification.

10.4Long-term incentive plan

The Group operates a long-term incentive plan.

The Group’s net obligation in respect of the long-term incentive plan is the amount of future benefit that employees

have earned in return for their services in the current and prior periods. That benefit is estimated using appropriate

assumptions and is discounted to determine its present value at each reporting date. Re-measurements are

recognised in profit or loss in the period in which they arise.

10.5Termination benefits

Termination benefits are payable when employment is terminated by the Group before the normal retirement date,

or whenever an employee accepts voluntary redundancy in exchange for these benefits. Termination benefits are

expensed at the earlier of the date the Group can no longer withdraw the offer of those benefits or the date the

Group recognises costs for a restructuring. Benefits falling due more than 12 months after the reporting date are

discounted to present value.

Accounting policies continued

11.Stated capital

11.1Ordinary share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are

recognised as a deduction from equity, net of any tax effects.

11.2Repurchase and reissue of share capital

When share capital recognised as equity is repurchased, the amount of the consideration paid, which includes

directly attributable costs, net of any tax effects, is recognised as a deduction from equity. Repurchased shares are

classified as treasury shares and are deducted from equity. When treasury shares are sold or reissued subsequently,

the amount received is recognised as an increase in equity, and the resulting surplus or deficit on the transaction is

presented in share premium.

12.Revenue from contracts with customers

The Group recognises revenue when control over its gold, copper and silver is transferred to the customer. The price

is determined by market forces (commodity price and exchange rates). Revenue is measured based on the

consideration specified in a contract with the customer.

Customers obtain control of gold, copper and silver on the settlement date. In Peru, customers obtain control of

copper and gold concentrate on the shipment date. Copper and gold concentrate revenue is calculated, net of

refining and treatment charges, on a best estimate basis on shipment date, using forward metal prices to the

estimated final pricing date, adjusted for the specific terms of the agreements. Variations between the price recorded

at the shipment date and the actual final price received are caused by changes in prevailing copper and gold prices.

Changes in the fair value as a result of changes in the forward metal prices are classified as provisional price

adjustments and included as a component of revenue.

13.Investment income

Investment income comprises interest income on funds invested and dividend income from listed and unlisted

investments.

Investment income is recognised to the extent that it is probable that economic benefits will flow to the Group and

the amount of investment income can be reliably measured. Investment income is stated at the fair value of the

consideration received or receivable.

13.1Dividend income

Dividends are recognised in profit or loss when the right to receive payment is established.

13.2Interest income

Interest income is recognised in profit or loss using the effective interest rate method. The effective interest rate is

the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial

instrument to the gross carrying amount of the financial asset or amortised cost of the financial liability.

Cash flows from dividends and interest received are classified under operating activities in the statement of

cash flows.