FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of May 2009
Commission File Number 1-31318
Gold Fields Limited
(Translation of registrant's name into English)
150 Helen Rd.
Sandown, Sandton 2196
South Africa
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under
cover Form 20-F or Form 40-F.
cover Form 20-F or Form 40-F.
Form 20-F..x... Form 40-F.....
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1): ________
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7): ________
Indicate by check mark whether by furnishing the information contained in this Form,
the registrant is also thereby furnishing the information to the Commission pursuant to
Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ..... No ..x...
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82- ________
EARNINGS BOOSTED BY HIGHER
PRODUCTION
AND GOLD PRICE
JOHANNESBURG. 7 May 2009
, Gold Fields Limited (NYSE & JSE: GFI) today announced
headline earnings for the March 2009 quarter of R1,512 million, compared with headline earnings
of R484 million and R1,246 million for the December 2008 and the March 2008 quarters
respectively. In US dollar terms headline earnings for the March 2009 quarter were US$163
million, compared with earnings of US$55 million and US$176 million for the December 2008 and
the March 2008 quarters respectively.
of R484 million and R1,246 million for the December 2008 and the March 2008 quarters
respectively. In US dollar terms headline earnings for the March 2009 quarter were US$163
million, compared with earnings of US$55 million and US$176 million for the December 2008 and
the March 2008 quarters respectively.
March 2009 quarter salient features:
Attributable gold production increased 4 per cent to 871,000 ounces;
Operating profit increased 55 per cent to R4.0 billion;
Total cash costs decreased 2 per cent from R153,893 per kilogram (US$487 per ounce) to
R150,301 per kilogram (US$471 per ounce);
R150,301 per kilogram (US$471 per ounce);
Notional cash expenditure decreased 13 per cent from R244,210 per kilogram (US$774 per
ounce) to R213,403 per kilogram (US$668 per ounce);
ounce) to R213,403 per kilogram (US$668 per ounce);
Mvela Gold subscribed for 15 per cent of GFI Mining South Africa (Pty) Limited (GFIMSA) and
exercised its right to use the GFIMSA shares to subscribe for 50 million new ordinary shares in
Gold Fields Limited;
exercised its right to use the GFIMSA shares to subscribe for 50 million new ordinary shares in
Gold Fields Limited;
Net debt decreased from R9.4 billion (US$970 million) to R7.7 billion (US$810 million);
Liquidity improved by cost effective refinancing package.
Statement by Nick Holland,
Chief Executive Officer of Gold Fields:
Chief Executive Officer of Gold Fields:
“During the quarter under review we remained
focused on our strategy of turning Gold Fields
around, with a particular emphasis on achieving a
step change in our safety performance; whilst at
the same time increasing the production base and
maintaining rigorous cost control aimed at
improving the generation of free cash flow.
We regret to report five fatalities during the quarter.
However, the safety performance of the Group
continued to show an improving trend and F2009
thus far is our best safety year ever. With only two
months of the financial year remaining at the time
of writing this report, our fatalities for the year
stand at 13 compared to 47 during the prior
financial year, with all other metrics showing
significant improvements.
The positive impact of the improvement in safety is
felt throughout the Group and reflects in the
improved morale of our people.
We remain committed to eliminating all serious and
fatal accidents on all of our mines, as well as to our
guiding principle of: “we will not mine if we cannot
mine safely”.
Despite a very challenging March quarter,
including the Christmas break in South Africa, Gold
focused on our strategy of turning Gold Fields
around, with a particular emphasis on achieving a
step change in our safety performance; whilst at
the same time increasing the production base and
maintaining rigorous cost control aimed at
improving the generation of free cash flow.
We regret to report five fatalities during the quarter.
However, the safety performance of the Group
continued to show an improving trend and F2009
thus far is our best safety year ever. With only two
months of the financial year remaining at the time
of writing this report, our fatalities for the year
stand at 13 compared to 47 during the prior
financial year, with all other metrics showing
significant improvements.
The positive impact of the improvement in safety is
felt throughout the Group and reflects in the
improved morale of our people.
We remain committed to eliminating all serious and
fatal accidents on all of our mines, as well as to our
guiding principle of: “we will not mine if we cannot
mine safely”.
Despite a very challenging March quarter,
including the Christmas break in South Africa, Gold
Fields remains on a positive trajectory with
production increasing by 4 per cent in the quarter,
and eight of our nine mines showing improvements
in production.
This follows an overall increase of 5 per cent in
quarter two, bringing our total production increase
for the last two quarters to 10 per cent from the low
point experienced in the September 2008 quarter.
We anticipate a further increase of a similar size in
the next quarter.
During the quarter under review, increased
production at similar costs resulted in an improved
operating margin of 47 per cent, and positive cash
flow generation, which is a key component of our
strategy of realising value for shareholders.
Our operational performance for the quarter was
negatively impacted by a poor quarter at Beatrix
and commissioning problems with the newly
expanded CIL plant at Tarkwa. By the end of the
quarter many of the issues impacting the
performance of both mines had been addressed
and significant improvements are expected at both
mines in the June quarter, which should bode well
for the overall performance of the Group.”
production increasing by 4 per cent in the quarter,
and eight of our nine mines showing improvements
in production.
This follows an overall increase of 5 per cent in
quarter two, bringing our total production increase
for the last two quarters to 10 per cent from the low
point experienced in the September 2008 quarter.
We anticipate a further increase of a similar size in
the next quarter.
During the quarter under review, increased
production at similar costs resulted in an improved
operating margin of 47 per cent, and positive cash
flow generation, which is a key component of our
strategy of realising value for shareholders.
Our operational performance for the quarter was
negatively impacted by a poor quarter at Beatrix
and commissioning problems with the newly
expanded CIL plant at Tarkwa. By the end of the
quarter many of the issues impacting the
performance of both mines had been addressed
and significant improvements are expected at both
mines in the June quarter, which should bode well
for the overall performance of the Group.”
Stock data
JSE Limited – (GFI)
Number of shares in issue
Range - Quarter
ZAR77.37 – ZAR123.50
- at end March 2009
704,237,969
Average Volume - Quarter
3,244,318 shares / day
- average for the quarter
669,602,482
NYSE – (GFI)
Free
Float
100%
Range - Quarter
US$7.94 – US$12.47
ADR Ratio
1:1
Average Volume - Quarter
9,350,542 shares / day
Bloomberg / Reuters
GFISJ / GFLJ.J
1 I GOLD FIELDS RESULTS Q3F2009
Health and safety
We regret to report that there were 5 fatal injuries recorded for the quarter at the
South African operations. Substantial progress has been made during the
quarter to show an improvement in all the key safety indices. The fatal injury
frequency rate improved from 0.15 to 0.11 during the quarter. An improvement in
the lost day injury frequency rate of 4.92 to 4.78 was achieved and the serious
injury frequency rate reduced from 2.69 to 2.65. The year to date fatal injury
frequency rate has improved from 0.23 in the previous year to 0.09 in the current
year, the lost day injury frequency rate has improved from 8.06 to 4.12 and the
serious injury frequency rate has improved from 4.32 to 2.50.
To maintain the recent gains achieved in the safety performance on the
operations, an initiative entitled “Safe production management” will be rolled out
in the new quarter to address safety systems, leadership behavior and
communication. The Gold Fields Group remains committed to zero fatalities,
serious and lost day injuries and no disabling health incidents.
South African operations. Substantial progress has been made during the
quarter to show an improvement in all the key safety indices. The fatal injury
frequency rate improved from 0.15 to 0.11 during the quarter. An improvement in
the lost day injury frequency rate of 4.92 to 4.78 was achieved and the serious
injury frequency rate reduced from 2.69 to 2.65. The year to date fatal injury
frequency rate has improved from 0.23 in the previous year to 0.09 in the current
year, the lost day injury frequency rate has improved from 8.06 to 4.12 and the
serious injury frequency rate has improved from 4.32 to 2.50.
To maintain the recent gains achieved in the safety performance on the
operations, an initiative entitled “Safe production management” will be rolled out
in the new quarter to address safety systems, leadership behavior and
communication. The Gold Fields Group remains committed to zero fatalities,
serious and lost day injuries and no disabling health incidents.
Financial review
Quarter ended 31 March 2009 compared with
quarter ended 31 December 2008
quarter ended 31 December 2008
Revenue
Attributable gold production for the March 2009 quarter amounted to 871,000
ounces compared with 839,000 ounces in the December quarter, an increase of
4 per cent. Production at the South African operations increased by 3 per cent
from 501,000 ounces to 517,000 ounces. Attributable gold production at the
international operations increased by 5 per cent from 338,000 ounces to 354,000
ounces.
At the South African operations the increase in gold production in the March
quarter was directly attributable to an increase in tonnage at Driefontein and
South Deep and an improved grade at Kloof. This increase was achieved
despite the Christmas break which had the usual impact on all of the South
African operations. At Driefontein gold production increased by 10 per cent
quarter on quarter due to increased underground tons and a drawdown of low
grade underground stockpiles. Gold production at Kloof increased by 15 per cent
ounces compared with 839,000 ounces in the December quarter, an increase of
4 per cent. Production at the South African operations increased by 3 per cent
from 501,000 ounces to 517,000 ounces. Attributable gold production at the
international operations increased by 5 per cent from 338,000 ounces to 354,000
ounces.
At the South African operations the increase in gold production in the March
quarter was directly attributable to an increase in tonnage at Driefontein and
South Deep and an improved grade at Kloof. This increase was achieved
despite the Christmas break which had the usual impact on all of the South
African operations. At Driefontein gold production increased by 10 per cent
quarter on quarter due to increased underground tons and a drawdown of low
grade underground stockpiles. Gold production at Kloof increased by 15 per cent
compared with the December quarter due to clean-up of high grade backlog
accumulations. At Beatrix gold production decreased by 25 per cent. This very
poor quarter at Beatrix was impacted by lower mining volumes associated with
limited flexibility and a lower yield, which was impacted by lower than expected
mining quality factors.
At the international operations managed gold production at Tarkwa increased by
9 per cent due to the commissioning of the CIL plant expansion. At Damang,
gold production increased by 4 per cent due to an increase in volumes processed
as a result of improved blast fragmentation and improved plant availability. Gold
production from Australia was 3 per cent higher than the previous quarter.
Agnew increased by 10 per cent due to increased volumes from underground.
Cerro Corona produced 61,400 equivalent ounces and sold 65,300 equivalent
ounces, which is similar to the December quarter.
The average quarterly US dollar gold price achieved increased 14 per cent from
US$792 per ounce in the December quarter to US$906 per ounce in the March
quarter. The average rand/US dollar exchange rate of R9.93 was marginally
weaker than the R9.82 achieved in the December quarter. As a result of the
above factors the rand gold price strengthened from R250,058 per kilogram to
R289,095 per kilogram, a 16 per cent increase. The Australian dollar gold price
increased from A$1,199 per ounce to A$1,378 per ounce as the US dollar
strengthened against the Australian dollar from 0.68 in the December quarter to
0.66 in the March quarter, allied with the increase in the US dollar gold price.
The increase in the rand gold price achieved, together with the increase in
production, resulted in revenue of R8,510 million (US$869 million), an increase of
20 per cent compared with the R7,074 million (US$718 million) achieved in the
December quarter.
accumulations. At Beatrix gold production decreased by 25 per cent. This very
poor quarter at Beatrix was impacted by lower mining volumes associated with
limited flexibility and a lower yield, which was impacted by lower than expected
mining quality factors.
At the international operations managed gold production at Tarkwa increased by
9 per cent due to the commissioning of the CIL plant expansion. At Damang,
gold production increased by 4 per cent due to an increase in volumes processed
as a result of improved blast fragmentation and improved plant availability. Gold
production from Australia was 3 per cent higher than the previous quarter.
Agnew increased by 10 per cent due to increased volumes from underground.
Cerro Corona produced 61,400 equivalent ounces and sold 65,300 equivalent
ounces, which is similar to the December quarter.
The average quarterly US dollar gold price achieved increased 14 per cent from
US$792 per ounce in the December quarter to US$906 per ounce in the March
quarter. The average rand/US dollar exchange rate of R9.93 was marginally
weaker than the R9.82 achieved in the December quarter. As a result of the
above factors the rand gold price strengthened from R250,058 per kilogram to
R289,095 per kilogram, a 16 per cent increase. The Australian dollar gold price
increased from A$1,199 per ounce to A$1,378 per ounce as the US dollar
strengthened against the Australian dollar from 0.68 in the December quarter to
0.66 in the March quarter, allied with the increase in the US dollar gold price.
The increase in the rand gold price achieved, together with the increase in
production, resulted in revenue of R8,510 million (US$869 million), an increase of
20 per cent compared with the R7,074 million (US$718 million) achieved in the
December quarter.
Operating costs
Operating costs increased by less than 1 per cent despite a 4 per cent increase
in production, from R4,542 million (US$453 million) in the December quarter to
R4,567 million (US$457 million) in the March quarter. Total cash cost decreased
by 2 per cent from R153,893 per kilogram (US$487 per ounce) in the December
quarter to R150,301 per kilogram (US$471 per ounce) in the March quarter.
At the South African operations, operating costs increased marginally from
R2,430 million (US$239 million) to R2,434 million (US$243 million). This
in production, from R4,542 million (US$453 million) in the December quarter to
R4,567 million (US$457 million) in the March quarter. Total cash cost decreased
by 2 per cent from R153,893 per kilogram (US$487 per ounce) in the December
quarter to R150,301 per kilogram (US$471 per ounce) in the March quarter.
At the South African operations, operating costs increased marginally from
R2,430 million (US$239 million) to R2,434 million (US$243 million). This
SOUTH AFRICAN RAND
Salient features
UNITED STATES DOLLARS
Nine months to
Quarter
Quarter
Nine months to
March
2008
March
2009
March
2008
December
2008
March
2009
March
2009
December
2008
March
2008
March
2009
March
2008
86,258
78,015
25,736
26,093
27,105
kg Gold
produced*
oz
(000)
871
839
827
2,508
2,773
106,902
152,500
122,920
153,893
150,301
R/kg
Total cash cost
$/oz
471
487
513
518
468
177,464
227,745
201,181
244,210
213,403
R/kg
Notional cash expenditure
$/oz
668
774
843
773
776
37,356
39,326
12,376
13,350
13,278
000
Tons
milled
000
13,278
13,350
12,376
39,326
37,356
180,270
253,567
220,612
250,058
289,095
R/kg
Revenue
$/oz
906
792
921
861
789
271
339
283
340
344
R/ton
Operating
costs $/ton
35
35
38
37
38
6,320
8,126
2,566
2,566
3,986
Rm
Operating
profit $m
416
268
347
887
886
38
38
42
36
47
%
Operating
margin
%
47
36
42
38
38
3,615
1,829
1,248
483
1,307
Rm
Net earnings
$m
140
54
167
200
508
554
275
191
74
195
SA c.p.s.
US c.p.s.
21
8
26
30
78
2,112
2,035
1,246
484
1,512
Rm
Headline earnings
$m
163
55
176
222
301
324
305
191
74
225
SA c.p.s.
US c.p.s.
24
8
27
33
46
1,996
2,032
1,001
542
1,369
Rm
Net earnings excluding
gains and losses on
foreign exchange, financial
instruments, exceptional
items and share of
profit/(loss) of associates
after taxation
$m
146
60
137
222
281
306
305
153
83
204
SA c.p.s.
US c.p.s.
21
10
21
33
43
* Attributable – All companies wholly owned except for Ghana (71.1%) and Cerro Corona (80.7%).
Forward Looking Statements
Certain statements in this document constitute “forward looking statements” within the meaning of Section 27A of the US Securities Act of 1933 and
Section 21E of the US Securities Exchange Act of 1934.
Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results,
performance or achievements of the company to be materially different from the future results, performance or achievements expressed or implied by
such forward looking statements. Such risks, uncertainties and other important factors include among others: economic, business and political
conditions in South Africa, Ghana, Australia, Peru and elsewhere; the ability to achieve anticipated efficiencies and other cost savings in connection
with past and future acquisitions, exploration and development activities; decreases in the market price of gold or copper; hazards associated with
underground and surface gold mining; labour disruptions; availability terms and deployment of capital or credit; changes in government regulations,
particularly environmental regulations; and new legislation affecting mining and mineral rights; changes in exchange rates; currency devaluations;
inflation and other macro-economic factors, industrial action, temporary stoppages of mines for safety reasons; and the impact of the AIDS crisis in
South Africa. These forward looking statements speak only as of the date of this document.
The company undertakes no obligation to update publicly or release any revisions to these forward looking statements to reflect events or
circumstances after the date of this document or to reflect the occurrence of unanticipated events.
GOLD FIELDS RESULTS Q3F2009 I 2
increase was mainly due to overtime on maintenance work done during the
Christmas break and the annual senior official salary increases. Total cash cost
at the South African operations decreased by 4 per cent from R148,944 per
kilogram (US$472 per ounce) to R143,340 per kilogram (US$449 per ounce).
At the international operations, including gold-in-process movements, operating
costs in the March quarter were similar to the December quarter at US$210
million. Most operations reflected a decrease in costs quarter on quarter in local
currencies, and only Cerro Corona had a significant increase which was in line
with its increased mining and processing volumes. Total cash cost at the
international operations decreased by 2 per cent from US$507 per ounce in the
December quarter to US$497 per ounce in the March quarter.
Christmas break and the annual senior official salary increases. Total cash cost
at the South African operations decreased by 4 per cent from R148,944 per
kilogram (US$472 per ounce) to R143,340 per kilogram (US$449 per ounce).
At the international operations, including gold-in-process movements, operating
costs in the March quarter were similar to the December quarter at US$210
million. Most operations reflected a decrease in costs quarter on quarter in local
currencies, and only Cerro Corona had a significant increase which was in line
with its increased mining and processing volumes. Total cash cost at the
international operations decreased by 2 per cent from US$507 per ounce in the
December quarter to US$497 per ounce in the March quarter.
Notional cash expenditure (NCE)
Notional cash expenditure is defined as operating costs plus capital expenditure,
and is reported on a per kilogram and per ounce basis – refer the detailed table
on page 21 of this report. The objective is to provide the all-in costs for the
Group, and for each operation. The NCE per ounce is an important measure, as
it determines how much free cash flow is generated in order to pay taxation,
interest, exploration and dividends.
The NCE for the Group for the March quarter amounted to R213,403 per
kilogram (US$668 per ounce) compared with R244,210 per kilogram (US$774
per ounce) in the December quarter. NCE for the December quarter includes
project expenditure at Cerro Corona and Tarkwa.
At the South African operations the NCE decreased from R214,277 per kilogram
(US$679 per ounce) in the December quarter to R206,570 per kilogram (US$647
per ounce) in the March quarter. At the international operations the NCE
decreased quarter on quarter from US$891 per ounce to US$694 per ounce.
and is reported on a per kilogram and per ounce basis – refer the detailed table
on page 21 of this report. The objective is to provide the all-in costs for the
Group, and for each operation. The NCE per ounce is an important measure, as
it determines how much free cash flow is generated in order to pay taxation,
interest, exploration and dividends.
The NCE for the Group for the March quarter amounted to R213,403 per
kilogram (US$668 per ounce) compared with R244,210 per kilogram (US$774
per ounce) in the December quarter. NCE for the December quarter includes
project expenditure at Cerro Corona and Tarkwa.
At the South African operations the NCE decreased from R214,277 per kilogram
(US$679 per ounce) in the December quarter to R206,570 per kilogram (US$647
per ounce) in the March quarter. At the international operations the NCE
decreased quarter on quarter from US$891 per ounce to US$694 per ounce.
Operating margin
The net effect of the changes in revenue and costs, after taking into account
gold-in-process movements, was a 55 per cent increase in operating profit from
R2,566 million (US$268 million) to R3,986 million (US$416 million). The Group
operating margin was 47 per cent compared with 36 per cent in the December
quarter. The margin at the South African operations increased from 39 per cent
to 48 per cent, while the margin at the international operations increased from 33
per cent to 46 per cent.
gold-in-process movements, was a 55 per cent increase in operating profit from
R2,566 million (US$268 million) to R3,986 million (US$416 million). The Group
operating margin was 47 per cent compared with 36 per cent in the December
quarter. The margin at the South African operations increased from 39 per cent
to 48 per cent, while the margin at the international operations increased from 33
per cent to 46 per cent.
Amortisation
Amortisation increased from R1,033 million (US$104 million) in the December
quarter to R1,141 million (US$115 million) in the March quarter. At the South
African operations amortisation increased from R480 million (US$48 million) to
R521 million (US$52 million) in line with the increased production at Driefontein,
Kloof and South Deep. At the international operations amortisation increased
from R515 million (US$53 million) to R583 million (US$59 million). This was
mainly due to the increase at Cerro Corona, due to the increased production, as
well as the increase at Tarkwa due to increased production and amortization of
the new CIL plant.
quarter to R1,141 million (US$115 million) in the March quarter. At the South
African operations amortisation increased from R480 million (US$48 million) to
R521 million (US$52 million) in line with the increased production at Driefontein,
Kloof and South Deep. At the international operations amortisation increased
from R515 million (US$53 million) to R583 million (US$59 million). This was
mainly due to the increase at Cerro Corona, due to the increased production, as
well as the increase at Tarkwa due to increased production and amortization of
the new CIL plant.
Other
Net interest paid at R164 million (US$17 million) was similar to the December
quarter. In the March quarter interest paid of R260 million (US$27 million) was
partly offset by interest received of R79 million (US$8 million) and interest
capitalised of R17 million (US$2 million). This compares with interest paid of
R240 million (US$24 million) partly offset by interest received of R46 million
(US$5 million) and interest capitalised of R30 million (US$3 million) in the
December quarter.
The share of profit of associates after taxation of R21 million (US$3 million) in the
March quarter compares with the share of losses of R47 million (US$4 million) in
the December quarter. This improvement relates largely to equity accounted
gains incurred at Rand Refinery compared with equity accounted losses at
Rusoro in the December quarter. The gain on foreign exchange of R129 million
(US$14 million) in the March quarter compares with a gain of R46 million (US$5
million) in the December quarter. The gain in the March quarter relates to
exchange gains on the repayment of Australian dollar intercompany loans. The
gain in the December quarter was mainly due to an exchange gain on the dollar
proceeds received in respect of the South Deep fire insurance claim and an
unrealised gain from translating the offshore insurance captive into its functional
currency.
The loss on financial instruments decreased from R66 million (US$7 million) in
the December quarter to R5 million (US$nil million) in the March quarter. The
loss in the March quarter was due to marked to market losses on the balance of
the diesel hedges in Ghana and Australia. The loss in the December quarter was
mainly due to the marked to market losses on diesel hedges in Ghana and
Australia, which amounted to R52 million (US$5 million) and R17 million (US$2
million) respectively.
Share based payments amounted to R95 million (US$10 million) in the March
quarter, which was similar to the December quarter.
quarter. In the March quarter interest paid of R260 million (US$27 million) was
partly offset by interest received of R79 million (US$8 million) and interest
capitalised of R17 million (US$2 million). This compares with interest paid of
R240 million (US$24 million) partly offset by interest received of R46 million
(US$5 million) and interest capitalised of R30 million (US$3 million) in the
December quarter.
The share of profit of associates after taxation of R21 million (US$3 million) in the
March quarter compares with the share of losses of R47 million (US$4 million) in
the December quarter. This improvement relates largely to equity accounted
gains incurred at Rand Refinery compared with equity accounted losses at
Rusoro in the December quarter. The gain on foreign exchange of R129 million
(US$14 million) in the March quarter compares with a gain of R46 million (US$5
million) in the December quarter. The gain in the March quarter relates to
exchange gains on the repayment of Australian dollar intercompany loans. The
gain in the December quarter was mainly due to an exchange gain on the dollar
proceeds received in respect of the South Deep fire insurance claim and an
unrealised gain from translating the offshore insurance captive into its functional
currency.
The loss on financial instruments decreased from R66 million (US$7 million) in
the December quarter to R5 million (US$nil million) in the March quarter. The
loss in the March quarter was due to marked to market losses on the balance of
the diesel hedges in Ghana and Australia. The loss in the December quarter was
mainly due to the marked to market losses on diesel hedges in Ghana and
Australia, which amounted to R52 million (US$5 million) and R17 million (US$2
million) respectively.
Share based payments amounted to R95 million (US$10 million) in the March
quarter, which was similar to the December quarter.
Other costs decreased from R52 million (US$6 million) in the December quarter
to R41 million (US$4 million) in the March quarter.
to R41 million (US$4 million) in the March quarter.
Exploration
Exploration expenditure was in line with the December quarter at R134 million
(US$14 million). Refer to the Exploration and Corporate Development section for
more detail.
(US$14 million). Refer to the Exploration and Corporate Development section for
more detail.
Exceptional items
The exceptional loss in the March quarter amounted to R203 million (US$23
million) which was mainly due to a loss on the exchange of Orezone shares for
IAMGold shares as a result of the conclusion of a takeover offer for Orezone.
The loss of R5 million (US$2 million) in the December quarter included both
finalisation of restructuring costs and a fire insurance claim at South Deep.
million) which was mainly due to a loss on the exchange of Orezone shares for
IAMGold shares as a result of the conclusion of a takeover offer for Orezone.
The loss of R5 million (US$2 million) in the December quarter included both
finalisation of restructuring costs and a fire insurance claim at South Deep.
Taxation
Taxation for the quarter amounted to R943 million (US$99 million) compared with
R496 million (US$53 million) in the December quarter, in line with the increase in
operating profit. The tax expense includes normal and deferred taxation at all
operations, together with government royalties at the international operations.
R496 million (US$53 million) in the December quarter, in line with the increase in
operating profit. The tax expense includes normal and deferred taxation at all
operations, together with government royalties at the international operations.
Earnings
Net profit attributable to ordinary shareholders amounted to R1,307 million
(US$140 million) or 195 SA cents per share (US$0.21 per share), compared with
R483 million (US$54 million) or 74 SA cents per share (US$0.08 per share) in the
December quarter.
Headline earnings i.e. earnings less the after tax effect of asset sales,
impairments, the sale of investments and discontinued operations, amounted to
R1,512 million (US$163 million) or 225 SA cents per share (US$0.24 per share),
compared with earnings of R484 million (US$55 million) or 74 SA cents per share
(US$0.08 per share) in the December quarter.
Earnings excluding exceptional items as well as net gains and losses on foreign
exchange, financial instruments and profit/(losses) of associates after taxation
amounted to R1,369 million (US$146 million) or 204 SA cents per share
(US$0.21 per share), compared with earnings of R542 million (US$60 million) or
83 SA cents per share (US$0.10 per share) reported in the December quarter.
(US$140 million) or 195 SA cents per share (US$0.21 per share), compared with
R483 million (US$54 million) or 74 SA cents per share (US$0.08 per share) in the
December quarter.
Headline earnings i.e. earnings less the after tax effect of asset sales,
impairments, the sale of investments and discontinued operations, amounted to
R1,512 million (US$163 million) or 225 SA cents per share (US$0.24 per share),
compared with earnings of R484 million (US$55 million) or 74 SA cents per share
(US$0.08 per share) in the December quarter.
Earnings excluding exceptional items as well as net gains and losses on foreign
exchange, financial instruments and profit/(losses) of associates after taxation
amounted to R1,369 million (US$146 million) or 204 SA cents per share
(US$0.21 per share), compared with earnings of R542 million (US$60 million) or
83 SA cents per share (US$0.10 per share) reported in the December quarter.
Cash flow
The cash inflow from operating activities for the quarter amounted to R2,947
million (US$328 million), compared with a cash inflow of R1,787 million (US$186
million) in the December quarter. This quarter on quarter increase of R1,160
million (US$142 million) was due to the increase in profit before tax and
exceptional items of R1,536 million (US$161 million) reflecting the higher gold
price and increased production. This was partly offset by an increase in taxation
paid of R313 million (US$157 million) mainly due to the half yearly tax payments
in South Africa.
Capital expenditure decreased from R2,345 million (US$239 million) in the
December quarter to R1,701 million (US$166 million) in the March quarter. This
decrease was mainly due to completion of the project phase of the Cerro Corona
project and the completion of the CIL expansion in Tarkwa in the December
quarter.
At the South African operations capital expenditure decreased from R907 million
(US$91 million) in the December quarter to R889 million (US$90 million) in the
March quarter. Expenditure on Ore Reserve Development (ORD) at Driefontein,
Kloof and Beatrix accounted for R119 million (US$12 million), R120 million
(US$12 million) and R72 million (US$7 million) respectively.
At the international operations capital expenditure decreased from R1,430 million
(US$147 million) to R800 million (US$76 million). This was mainly due to a
decrease in capital expenditure of R308 million (US$37 million) at Cerro Corona
as the project phase was completed. In Ghana, expenditure at Tarkwa
decreased by R277 million (US$28 million) mainly due to the completion of the
CIL expansion. In Australia, at St Ives, capital expenditure decreased by R47
million (A$7 million) due to the completion of the project phase of the Cave Rocks
underground mine, which reached full production in the month of December and
the completion of the capital waste of the Grinder open pit during the December
quarter.
Net cash inflow from financing activities in the March quarter amounted to R94
million (US$12 million). Loans received in the March quarter amounted to R4.9
billion (US$497 million), mainly due to drawdowns on the facility to repay the
Mvela loan and to advance funds to Cerro Corona and Tarkwa. Loans repaid
amounted to R5.0 billion (US$498 million), mainly made up of a repayment of the
above mentioned facility as well as some of the South African loans..
In addition, an outside shareholder’s loan was received from IAMGold being their
share of loans advanced to Tarkwa.
To give effect to the maturity of the Mvela transaction, a series of cash flows
were effected during the quarter as follows: Gold Fields fully drew down on its
million (US$328 million), compared with a cash inflow of R1,787 million (US$186
million) in the December quarter. This quarter on quarter increase of R1,160
million (US$142 million) was due to the increase in profit before tax and
exceptional items of R1,536 million (US$161 million) reflecting the higher gold
price and increased production. This was partly offset by an increase in taxation
paid of R313 million (US$157 million) mainly due to the half yearly tax payments
in South Africa.
Capital expenditure decreased from R2,345 million (US$239 million) in the
December quarter to R1,701 million (US$166 million) in the March quarter. This
decrease was mainly due to completion of the project phase of the Cerro Corona
project and the completion of the CIL expansion in Tarkwa in the December
quarter.
At the South African operations capital expenditure decreased from R907 million
(US$91 million) in the December quarter to R889 million (US$90 million) in the
March quarter. Expenditure on Ore Reserve Development (ORD) at Driefontein,
Kloof and Beatrix accounted for R119 million (US$12 million), R120 million
(US$12 million) and R72 million (US$7 million) respectively.
At the international operations capital expenditure decreased from R1,430 million
(US$147 million) to R800 million (US$76 million). This was mainly due to a
decrease in capital expenditure of R308 million (US$37 million) at Cerro Corona
as the project phase was completed. In Ghana, expenditure at Tarkwa
decreased by R277 million (US$28 million) mainly due to the completion of the
CIL expansion. In Australia, at St Ives, capital expenditure decreased by R47
million (A$7 million) due to the completion of the project phase of the Cave Rocks
underground mine, which reached full production in the month of December and
the completion of the capital waste of the Grinder open pit during the December
quarter.
Net cash inflow from financing activities in the March quarter amounted to R94
million (US$12 million). Loans received in the March quarter amounted to R4.9
billion (US$497 million), mainly due to drawdowns on the facility to repay the
Mvela loan and to advance funds to Cerro Corona and Tarkwa. Loans repaid
amounted to R5.0 billion (US$498 million), mainly made up of a repayment of the
above mentioned facility as well as some of the South African loans..
In addition, an outside shareholder’s loan was received from IAMGold being their
share of loans advanced to Tarkwa.
To give effect to the maturity of the Mvela transaction, a series of cash flows
were effected during the quarter as follows: Gold Fields fully drew down on its
3 I GOLD FIELDS RESULTS Q3F2009
credit facility in order to repay the Mvela loan of R4.1 billion. Mvela then used the
proceeds from the loan repayment to subscribe for its 15 per cent interest in
GFIMSA by paying R4.1 billion to GFIMSA. The proceeds from Mvela were then
used to fully settle the abovementioned credit facility. Immediately upon receipt
of the GFIMSA shares, Mvela Gold exercised its right to use the GFIMSA shares
to subscribe for 50 million new ordinary shares in Gold Fields.
Net cash inflow for the quarter was R1,396 million (US$180 million) compared
with a net cash outflow of R895 million (US$92 million) in the December quarter.
After accounting for a positive translation adjustment of R88 million (negative
translation adjustment in dollar terms of US$24 million), the cash balance at the
end of March was R2,537 million (US$265 million). The cash balance at the end
of December was R1,054 million (US$109 million) a net increase of R1.5 billion
(US$156 million) for the quarter.
proceeds from the loan repayment to subscribe for its 15 per cent interest in
GFIMSA by paying R4.1 billion to GFIMSA. The proceeds from Mvela were then
used to fully settle the abovementioned credit facility. Immediately upon receipt
of the GFIMSA shares, Mvela Gold exercised its right to use the GFIMSA shares
to subscribe for 50 million new ordinary shares in Gold Fields.
Net cash inflow for the quarter was R1,396 million (US$180 million) compared
with a net cash outflow of R895 million (US$92 million) in the December quarter.
After accounting for a positive translation adjustment of R88 million (negative
translation adjustment in dollar terms of US$24 million), the cash balance at the
end of March was R2,537 million (US$265 million). The cash balance at the end
of December was R1,054 million (US$109 million) a net increase of R1.5 billion
(US$156 million) for the quarter.
Balance sheet (Investment and net debt)
Investments increased from R4,360 million (US$452 million) at 31 December
2008 to R5,107 million (US$534 million) at 31 March 2009. This increase was
mainly due to marked to market gains on the Gold Fields share portfolio. These
marked to market gains have been accounted for in equity.
Net debt (long-term loans plus current portion of long-term loans less cash and
deposits) has decreased from R9,354 million (US$970 million) at 31 December
2008 to R7,748 million (US$810 million) at 31 March 2009. This decrease in total
debt is as a result of the increase in cash and deposits of approximately R1.5
billion arising from an increase in operational profit and lower capital expenditure.
In March Standard and Poor’s Ratings Services (“S&P”) assigned Gold Fields an
investment grade credit rating of ‘BBB-/ A-3‘ long-term and short-term global
scale credit rating and ‘zaA/zaA-1’ long-term and short-term South Africa national
scale credit rating. The outlook is stable.
Subsequent to quarter end on 8 April 2009, Gold Fields utilised this credit rating
to access the local commercial paper market and successfully raised R568
million. The company raised R90 million with a three-month maturity at a spread
of 70 basis points (bps) over 3-month JIBAR and R478 million with a six-month
maturity at a spread of 100 bps over 3-month JIBAR. The proceeds will be
utilised to partially refinance the R1 billion debt facility maturing in May. The
company’s intention was to take advantage of the liquidity and pricing in the
short-term as well as diversify sources of funding. The remainder of the maturing
debt will be funded through bank debt.
Over and above the commercial paper issuance, Gold Fields has secured two
additional bank facilities in the form of a R1.5 billion 5-year revolving credit facility
and a US$311 million syndicated a 2 year revolving credit facility. The dollar
denominated revolving credit facility bears interest at a margin of 275bps over
LIBOR. The rand denominated revolving credit facility bears interest at a margin
of 295bps over JIBAR.
This refinancing strategy improves the debt maturity profile and provides flexibility
in terms of access to funding. Our intention however, remains to reduce debt
over the next 18 months. A debt maturity ladder is included on page 15.
2008 to R5,107 million (US$534 million) at 31 March 2009. This increase was
mainly due to marked to market gains on the Gold Fields share portfolio. These
marked to market gains have been accounted for in equity.
Net debt (long-term loans plus current portion of long-term loans less cash and
deposits) has decreased from R9,354 million (US$970 million) at 31 December
2008 to R7,748 million (US$810 million) at 31 March 2009. This decrease in total
debt is as a result of the increase in cash and deposits of approximately R1.5
billion arising from an increase in operational profit and lower capital expenditure.
In March Standard and Poor’s Ratings Services (“S&P”) assigned Gold Fields an
investment grade credit rating of ‘BBB-/ A-3‘ long-term and short-term global
scale credit rating and ‘zaA/zaA-1’ long-term and short-term South Africa national
scale credit rating. The outlook is stable.
Subsequent to quarter end on 8 April 2009, Gold Fields utilised this credit rating
to access the local commercial paper market and successfully raised R568
million. The company raised R90 million with a three-month maturity at a spread
of 70 basis points (bps) over 3-month JIBAR and R478 million with a six-month
maturity at a spread of 100 bps over 3-month JIBAR. The proceeds will be
utilised to partially refinance the R1 billion debt facility maturing in May. The
company’s intention was to take advantage of the liquidity and pricing in the
short-term as well as diversify sources of funding. The remainder of the maturing
debt will be funded through bank debt.
Over and above the commercial paper issuance, Gold Fields has secured two
additional bank facilities in the form of a R1.5 billion 5-year revolving credit facility
and a US$311 million syndicated a 2 year revolving credit facility. The dollar
denominated revolving credit facility bears interest at a margin of 275bps over
LIBOR. The rand denominated revolving credit facility bears interest at a margin
of 295bps over JIBAR.
This refinancing strategy improves the debt maturity profile and provides flexibility
in terms of access to funding. Our intention however, remains to reduce debt
over the next 18 months. A debt maturity ladder is included on page 15.
Detailed and operational review
South African operations
Cost and revenue optimisation initiatives
During financial 2008, the South African operations reviewed the suite of projects
under Project 500 and identified the following for implementation over the next
two to three years.
under Project 500 and identified the following for implementation over the next
two to three years.
Project 1M
Project 1M is a productivity initiative that aims to improve quality mining volumes
by increasing the face advance by an additional one metre per month to an
average of at least eight metres per month by the end of financial year 2010.
This should be achieved through the following key improvement initiatives:
drilling and blasting practices;
cleaning and sweeping practices;
mining cycle and training;
Improved pay face availability.
The planned increase in face advance targets will improve underground
production, which will reflect in improved labour efficiencies, lower unit mining
costs and improved revenue. Although an improvement in safety is clearly visible,
improvement in quality volumes remains a challenge.
by increasing the face advance by an additional one metre per month to an
average of at least eight metres per month by the end of financial year 2010.
This should be achieved through the following key improvement initiatives:
drilling and blasting practices;
cleaning and sweeping practices;
mining cycle and training;
Improved pay face availability.
The planned increase in face advance targets will improve underground
production, which will reflect in improved labour efficiencies, lower unit mining
costs and improved revenue. Although an improvement in safety is clearly visible,
improvement in quality volumes remains a challenge.
Project 2M
Project 2M is a technology initiative aimed at mechanizing all flat-end
development (i.e. development on the horizontal plane) at the long-life shafts of
Driefontein, Kloof and Beatrix by the end of financial 2010. South Deep is
excluded as it is a fully mechanized mine. The aim of the project is to improve
safety, productivity and increase reserve flexibility. It targets a mechanization
development (i.e. development on the horizontal plane) at the long-life shafts of
Driefontein, Kloof and Beatrix by the end of financial 2010. South Deep is
excluded as it is a fully mechanized mine. The aim of the project is to improve
safety, productivity and increase reserve flexibility. It targets a mechanization
rate of 43 per cent of flat-end development in financial year 2009, reaching 100
per cent by 30 June 2010.
During the March quarter, 39 per cent 34of flat-end development was achieved
with mechanised equipment. Unit cost, equipment efficiency and labour
productivity are improving as teams are gaining more confidence and experience
with the mechanised equipment. Safety improvements to date are very
encouraging.
per cent by 30 June 2010.
During the March quarter, 39 per cent 34of flat-end development was achieved
with mechanised equipment. Unit cost, equipment efficiency and labour
productivity are improving as teams are gaining more confidence and experience
with the mechanised equipment. Safety improvements to date are very
encouraging.
Project 3M
Project 3M is a suite of projects focused on reducing energy and utilities
consumption, work place absenteeism and surface (“above-ground”) costs,
including supply chain.
The energy and utilities projects, comprising power, diesel and the related
consumption of air and water, targets savings of R130 million per annum at
current tariff levels by the end of financial year 2010. This is to be achieved by
way of a 10 per cent reduction in power consumption and a 20 per cent reduction
in diesel; R70 million in financial 2009 and R60 million in financial year 2010.
These savings are against the baseline consumption for the financial year 2008
and driven by various initiatives.
Financial year to date savings amount to R56 million if compared with the same
period in financial 2008. The average power consumed for the quarter was 543.7
Megawatts, compared with an Eskom base line of 600.1 Megawatts. Financial
savings for the quarter if compared with the Eskom baseline amounts to R25
million. The average diesel consumption for the quarter was 26 per cent lower
than the baseline of 2.1 million litres.
The management of work place absenteeism project (“Unavailables project”)
aims to reduce the impact on lost production and costs arising from work place
absenteeism. This project aims to reduce work place absenteeism by 4 per cent
by financial 2010, from the current 13 per cent. A target of 2 per cent in each of
financial year 2009 and 2010 has been set. A 2 per cent reduction has been
achieved in the financial year to date largely due to reduced incidences of
industrial action and more diligent labour management.
The above-ground cost project aims to reduce surface costs by at least R100
million per annum. Various initiatives are in place.
Projects which reduced above ground cost were the following:
Shared services – saving for the quarter was R10 million (year to date: R28
consumption, work place absenteeism and surface (“above-ground”) costs,
including supply chain.
The energy and utilities projects, comprising power, diesel and the related
consumption of air and water, targets savings of R130 million per annum at
current tariff levels by the end of financial year 2010. This is to be achieved by
way of a 10 per cent reduction in power consumption and a 20 per cent reduction
in diesel; R70 million in financial 2009 and R60 million in financial year 2010.
These savings are against the baseline consumption for the financial year 2008
and driven by various initiatives.
Financial year to date savings amount to R56 million if compared with the same
period in financial 2008. The average power consumed for the quarter was 543.7
Megawatts, compared with an Eskom base line of 600.1 Megawatts. Financial
savings for the quarter if compared with the Eskom baseline amounts to R25
million. The average diesel consumption for the quarter was 26 per cent lower
than the baseline of 2.1 million litres.
The management of work place absenteeism project (“Unavailables project”)
aims to reduce the impact on lost production and costs arising from work place
absenteeism. This project aims to reduce work place absenteeism by 4 per cent
by financial 2010, from the current 13 per cent. A target of 2 per cent in each of
financial year 2009 and 2010 has been set. A 2 per cent reduction has been
achieved in the financial year to date largely due to reduced incidences of
industrial action and more diligent labour management.
The above-ground cost project aims to reduce surface costs by at least R100
million per annum. Various initiatives are in place.
Projects which reduced above ground cost were the following:
Shared services – saving for the quarter was R10 million (year to date: R28
million). This saving was realised by optimization of process, labour,
discounts received and inventory.
discounts received and inventory.
Training expenditure – a much more focused strategy to service our core
business is in the process of being developed. Benefits of this re-aligned
strategy will be realised in financial year 2010.
strategy will be realised in financial year 2010.
Hospital services – saving for the quarter was R1 million (year to date: R3
million). This saving was realised by optimization of process.
On the supply chain side the impact of the global economic crisis effectively
stopped the rampant inflation recently experienced over various input
commodities, with decreases in amongst others copper, steel, fuel, explosives,
despite the weakening of the rand. The deflationary trend should continue over
the next quarter.
During the March quarter approximately R20 million strategic sourcing,
procurement and repairs/maintenance price and consumption related savings
were realised in fuel and copper rise-and-fall price reductions. Price reductions
were also negotiated across various steel, coal, chemical and explosive products.
Part of the price related claw-back savings realised during the March quarter
were off-set by exchange rate fluctuations on grinding balls and inflationary price
increases in areas such as cement, lime, food and beverages (catering menu
improvements) and other services related labour rates. The decline in the
procurement basket as measured against the highs in the latter half of 2008
amount to approximately 6 per cent in Australia and South Africa, 2 per cent in
Peru and over 10 per cent in Ghana. Most of these benefits have been realised
during the March quarter.
Project 4M
Project 4M initiative focuses on the Mine Health and Safety Council (MHSC)
milestones agreed to on 15 June 2003. A tripartite health and safety summit
comprising representatives from Government, organised Labour Unions and
Associations and Mining employer groupings of 22 mining companies represents
the South African mining sector in its commitment to a policy of “zero” harm to
workers. The focus is on achieving occupational health and safety targets and
milestones over a 10-year period. The commitment was driven by the need to
achieve greater improvements in occupational health and safety in the mining
industry.
A business objective was set to try and ensure that the South African operations
comply with the ten-year milestones. As a result, various initiatives are in the
process of being implemented by our operations. The initiatives are based on
leading practices identified and researched by the Noise and Dust Task Teams
milestones agreed to on 15 June 2003. A tripartite health and safety summit
comprising representatives from Government, organised Labour Unions and
Associations and Mining employer groupings of 22 mining companies represents
the South African mining sector in its commitment to a policy of “zero” harm to
workers. The focus is on achieving occupational health and safety targets and
milestones over a 10-year period. The commitment was driven by the need to
achieve greater improvements in occupational health and safety in the mining
industry.
A business objective was set to try and ensure that the South African operations
comply with the ten-year milestones. As a result, various initiatives are in the
process of being implemented by our operations. The initiatives are based on
leading practices identified and researched by the Noise and Dust Task Teams
GOLD FIELDS RESULTS Q3F2009 I 4
and other mining groups. The Chamber of Mines initiated, with the assistance of
the respective mining industries, the Noise and Dust Task Teams to assist the
mines with research data and the development of milestone implementation
strategies.
the respective mining industries, the Noise and Dust Task Teams to assist the
mines with research data and the development of milestone implementation
strategies.
Project 5M
Uranium Project
Uranium Project
This project, which is designed to define the economic potential of processing a
selected number of Gold Fields’ South African tailings dams and underground
resources for the recovery of uranium and the related by-products of gold and
sulphur, has made good progress during the quarter.
Drilling of the historical tailings storage facilities (TSF’s) on the West Wits
operations has been completed. Resource profiles have been developed for gold,
uranium and sulphur for each of the TSF’s and a mining and reclamation strategy
has been developed. A preliminary mining schedule has been finalised which
takes into account physical and geographic limitations. Over the next few months
the mining schedule will be optimized in parallel with the selection process for the
most suitable metallurgical treatment option and in conjunction with the financial
evaluation of the overall project.
The resource model for the TSFs has been completed. Following internal review
the model will be reviewed externally with a SAMREC compliant resource
expected to be completed by the end of this financial year.
Engineering and Projects Company is in the final stages of completing both the
feasibility study for the Driefontein run of mine tailings treatment operation and
the pre-feasibility study for the treatment of the historic TSF’s. Internal review is
underway with an external peer review process scheduled for May 2009. Both
studies should be fully complete by the end of the financial year. A detailed
programme of laboratory and pilot plant test work is ongoing to assist in
optimising the plant process flow diagrams and design criteria.
Metago Environmental Engineers is preparing a feasibility study level document
on the new TSF required for the project. Site selection and preliminary design to
accommodate deposition of 750 million tons has been completed. The
preliminary design for the mining and pumping infrastructure required has also
been completed. Both the mining and pumping design and the tailings storage
facility design is currently being reviewed internally and will be subject to external
peer review. Good progress has been made with respect to the environmental
impact assessment and the permitting process. An external peer review of the
environmental issues associated with the project took place in the third quarter
and action plans have been formulated and are being implemented in order to
address and incorporate the outcomes of the review into the respective elements
of the project. All relevant government and regulatory bodies have been
identified and initial engagement meetings have taken place. The various scopes
of work for the technical investigations have been finalised and were submitted to
the relevant authorities during April 2009.
All project activities are on schedule to ensure the company can make a decision
to progress to a combined bankable level feasibility study by the end of June
2009. This study together with a full marketing analysis, scheduled to be
completed by the end of calendar 2009, will allow the Board to make a decision
in early 2010.
selected number of Gold Fields’ South African tailings dams and underground
resources for the recovery of uranium and the related by-products of gold and
sulphur, has made good progress during the quarter.
Drilling of the historical tailings storage facilities (TSF’s) on the West Wits
operations has been completed. Resource profiles have been developed for gold,
uranium and sulphur for each of the TSF’s and a mining and reclamation strategy
has been developed. A preliminary mining schedule has been finalised which
takes into account physical and geographic limitations. Over the next few months
the mining schedule will be optimized in parallel with the selection process for the
most suitable metallurgical treatment option and in conjunction with the financial
evaluation of the overall project.
The resource model for the TSFs has been completed. Following internal review
the model will be reviewed externally with a SAMREC compliant resource
expected to be completed by the end of this financial year.
Engineering and Projects Company is in the final stages of completing both the
feasibility study for the Driefontein run of mine tailings treatment operation and
the pre-feasibility study for the treatment of the historic TSF’s. Internal review is
underway with an external peer review process scheduled for May 2009. Both
studies should be fully complete by the end of the financial year. A detailed
programme of laboratory and pilot plant test work is ongoing to assist in
optimising the plant process flow diagrams and design criteria.
Metago Environmental Engineers is preparing a feasibility study level document
on the new TSF required for the project. Site selection and preliminary design to
accommodate deposition of 750 million tons has been completed. The
preliminary design for the mining and pumping infrastructure required has also
been completed. Both the mining and pumping design and the tailings storage
facility design is currently being reviewed internally and will be subject to external
peer review. Good progress has been made with respect to the environmental
impact assessment and the permitting process. An external peer review of the
environmental issues associated with the project took place in the third quarter
and action plans have been formulated and are being implemented in order to
address and incorporate the outcomes of the review into the respective elements
of the project. All relevant government and regulatory bodies have been
identified and initial engagement meetings have taken place. The various scopes
of work for the technical investigations have been finalised and were submitted to
the relevant authorities during April 2009.
All project activities are on schedule to ensure the company can make a decision
to progress to a combined bankable level feasibility study by the end of June
2009. This study together with a full marketing analysis, scheduled to be
completed by the end of calendar 2009, will allow the Board to make a decision
in early 2010.
International operations
Integrated continuous improvement initiatives and
strategic sourcing / contract benefits achieved
strategic sourcing / contract benefits achieved
Continued cost savings from contracted rise-and-fall mechanisms and cost
optimization benefits were achieved across multiple initiatives during the March
quarter. Consolidated total cost benefits of around US$10 million were achieved
for the International operations for the quarter. Financial year 2009 year to date
cumulative total cost benefits are approximately US$26 million.
optimization benefits were achieved across multiple initiatives during the March
quarter. Consolidated total cost benefits of around US$10 million were achieved
for the International operations for the quarter. Financial year 2009 year to date
cumulative total cost benefits are approximately US$26 million.
Australia
Diesel and steel rise-and-fall price reductions continued during the March quarter
and resulted in added cost reductions for Australia of around A$2 million. In
addition, around A$3 million total cost benefits were achieved in areas such as
surface mining improvement initiatives, ground support competitive price
reductions, Kambalda private charter flight cost savings and water supply cost
recovery.
and resulted in added cost reductions for Australia of around A$2 million. In
addition, around A$3 million total cost benefits were achieved in areas such as
surface mining improvement initiatives, ground support competitive price
reductions, Kambalda private charter flight cost savings and water supply cost
recovery.
Ghana
Diesel rise-and-fall price reductions in Ghana generated around US$5 million
savings during the March quarter. In addition, about US$1 million benefits were
achieved in areas such as lubricants, road haulage and explosives price
reductions. The Tarkwa on-site explosives emulsion plant delivered benefits in
the March quarter of US$7 per ton and is estimated to deliver savings of around
US$300,000 on an annual basis.
savings during the March quarter. In addition, about US$1 million benefits were
achieved in areas such as lubricants, road haulage and explosives price
reductions. The Tarkwa on-site explosives emulsion plant delivered benefits in
the March quarter of US$7 per ton and is estimated to deliver savings of around
US$300,000 on an annual basis.
Peru
During the March quarter various teams, in areas such as integrated supply
chain, logistics and concentrate distribution, focused on aligning critical supply
and services to operational demand.
chain, logistics and concentrate distribution, focused on aligning critical supply
and services to operational demand.
South African operations
Mining Royalties
The Mineral and Petroleum Resources Royalty Act. was published in the
Government Gazette No. 31635 of 24 November 2008. The implementation date
of the royalty has been postponed and the royalty will now only apply in respect
of gold and other minerals sold on or after 1 March 2010.
The royalty in respect of refined mineral resources (gold) is calculated by
multiplying the gross sales by the percentage determined in accordance with a
formula. The formula for refined minerals = 0.5 plus (earnings before interest
and taxes, “EBIT”) divided by (gross sales multiplied by 12,5) calculated as a
percentage. EBIT constitutes taxable mining income before assessed losses but
after capital expenditure. A cap of 5 per cent has been introduced on refined
minerals.
The royalty in respect of unrefined minerals resources (Uranium) is calculated by
multiplying the gross sales by the percentage determined in accordance with the
unrefined minerals formula. The formula for unrefined minerals = 0.5 plus
(earnings before interest and taxes, “EBIT”) divided by (gross sales multiplied by
9) calculated as a percentage. A cap of 7 per cent has been introduced on
unrefined minerals.
Where unrefined minerals resources (uranium) constitutes less than 10 per cent
in value of the total composite mineral resources (the total gross sales of gold
and uranium combined), the royalty rate in respect of refined mineral resources
(gold) may be used for all gross sales and a separate calculation of earnings
before interest and taxes for each class of minerals resource is not required.
Government Gazette No. 31635 of 24 November 2008. The implementation date
of the royalty has been postponed and the royalty will now only apply in respect
of gold and other minerals sold on or after 1 March 2010.
The royalty in respect of refined mineral resources (gold) is calculated by
multiplying the gross sales by the percentage determined in accordance with a
formula. The formula for refined minerals = 0.5 plus (earnings before interest
and taxes, “EBIT”) divided by (gross sales multiplied by 12,5) calculated as a
percentage. EBIT constitutes taxable mining income before assessed losses but
after capital expenditure. A cap of 5 per cent has been introduced on refined
minerals.
The royalty in respect of unrefined minerals resources (Uranium) is calculated by
multiplying the gross sales by the percentage determined in accordance with the
unrefined minerals formula. The formula for unrefined minerals = 0.5 plus
(earnings before interest and taxes, “EBIT”) divided by (gross sales multiplied by
9) calculated as a percentage. A cap of 7 per cent has been introduced on
unrefined minerals.
Where unrefined minerals resources (uranium) constitutes less than 10 per cent
in value of the total composite mineral resources (the total gross sales of gold
and uranium combined), the royalty rate in respect of refined mineral resources
(gold) may be used for all gross sales and a separate calculation of earnings
before interest and taxes for each class of minerals resource is not required.
Driefontein
March
2009
December
2008
Gold produced
- kg
6,693
6,063
-
000’ozs
215.2
194.9
Yield - underground
- g/t
7.1
7.4
- combined
- g/t
4.4
3.8
Total cash cost
- R/kg
122,680
137,886
-
US$/oz
384
437
Notional cash expenditure
- R/kg
168,729
186,459
-
US$/oz
529
591
Gold production increased by 10 per cent from 6,063 kilograms (194,900 ounces)
in the December quarter to 6,693 kilograms (215,200 ounces) in the March
quarter due to increased underground volumes. Underground tonnage increased
from 751,000 tons in the December quarter to 868,000 tons in the March quarter
due to increased volumes from 6 shaft and the milling of 105,000 tons of lower
grade Christmas stockpile made up of 6 shaft and 8 shaft material. Underground
yield decreased from 7.4 grams per ton to 7.1 grams per ton. Surface tonnage
decreased from 857,000 tons to 669,000 tons due to the displacement of surface
material with higher grade underground material. Surface yield increased from
0.6 grams per ton in the December quarter to 0.8 grams per ton in the March
quarter due to the mining mix of surface sources.
Main development increased by 73 per cent for the quarter and on-reef
development increased by 54 per cent, mainly as a result of the completion of the
backlog secondary support programme. The average development value
decreased from 841cm.g/t in the December quarter to 791cm.g/t in the March
quarter, primarily due to lower values from secondary development in
prospecting areas at 2 shaft and 8 shaft. Development in higher value areas was
constrained by the focus on the secondary support backlog programme.
Operating costs decreased from R877 million (US$86 million) to R868 million
(US$86 million). The decrease in operating cost is mainly attributable to an
increase in capitalisation of ore reserve development associated with an increase
in development. Total cash cost decreased 11 per cent from R137,886 per
kilogram (US$437 per ounce) to R122,680 per kilogram (US$384 per ounce).
Operating profit increased 63 per cent from R662 million (US$68 million) in the
December quarter to R1,080 million (US$112 million) in the March quarter.
Capital expenditure increased from R254 million (US$26 million) to R262 million
(US$26 million). The increase was mainly due to increased expenditure on
capitalised ore reserve development.
Notional cash expenditure decreased from R186,459 per kilogram (US$591 per
ounce) to R168,729 per kilogram (US$529 per ounce) due to the increase in gold
output and a decrease in operating costs partially offset by increased capital
expenditure.
in the December quarter to 6,693 kilograms (215,200 ounces) in the March
quarter due to increased underground volumes. Underground tonnage increased
from 751,000 tons in the December quarter to 868,000 tons in the March quarter
due to increased volumes from 6 shaft and the milling of 105,000 tons of lower
grade Christmas stockpile made up of 6 shaft and 8 shaft material. Underground
yield decreased from 7.4 grams per ton to 7.1 grams per ton. Surface tonnage
decreased from 857,000 tons to 669,000 tons due to the displacement of surface
material with higher grade underground material. Surface yield increased from
0.6 grams per ton in the December quarter to 0.8 grams per ton in the March
quarter due to the mining mix of surface sources.
Main development increased by 73 per cent for the quarter and on-reef
development increased by 54 per cent, mainly as a result of the completion of the
backlog secondary support programme. The average development value
decreased from 841cm.g/t in the December quarter to 791cm.g/t in the March
quarter, primarily due to lower values from secondary development in
prospecting areas at 2 shaft and 8 shaft. Development in higher value areas was
constrained by the focus on the secondary support backlog programme.
Operating costs decreased from R877 million (US$86 million) to R868 million
(US$86 million). The decrease in operating cost is mainly attributable to an
increase in capitalisation of ore reserve development associated with an increase
in development. Total cash cost decreased 11 per cent from R137,886 per
kilogram (US$437 per ounce) to R122,680 per kilogram (US$384 per ounce).
Operating profit increased 63 per cent from R662 million (US$68 million) in the
December quarter to R1,080 million (US$112 million) in the March quarter.
Capital expenditure increased from R254 million (US$26 million) to R262 million
(US$26 million). The increase was mainly due to increased expenditure on
capitalised ore reserve development.
Notional cash expenditure decreased from R186,459 per kilogram (US$591 per
ounce) to R168,729 per kilogram (US$529 per ounce) due to the increase in gold
output and a decrease in operating costs partially offset by increased capital
expenditure.
5 I GOLD FIELDS RESULTS Q3F2009
The estimate for the June quarter is as follows:
Gold produced – 6,800 kilograms (218,000 ounces)
Total cash costs* – R129,000 per kilogram (US$445 per ounce)
Capital expenditure* – R320 million (US$36 million)
Notional cash expenditure* – R182,000 per kilogram (US$630 per ounce)
* Based on an exchange rate of US$1 = R9.00.
The increase in the gold production estimate is mainly due to improved volumes
from underground and surface at consistent values. Total cash cost is expected
to increase due to anticipated increase in electricity costs. The increased capital
expenditure is due to increased expenditure on the 4 shaft pillar extraction
project, the tailings uranium feasibility study, the water plant project, housing
upgrades and other sustaining projects.
Gold produced – 6,800 kilograms (218,000 ounces)
Total cash costs* – R129,000 per kilogram (US$445 per ounce)
Capital expenditure* – R320 million (US$36 million)
Notional cash expenditure* – R182,000 per kilogram (US$630 per ounce)
* Based on an exchange rate of US$1 = R9.00.
The increase in the gold production estimate is mainly due to improved volumes
from underground and surface at consistent values. Total cash cost is expected
to increase due to anticipated increase in electricity costs. The increased capital
expenditure is due to increased expenditure on the 4 shaft pillar extraction
project, the tailings uranium feasibility study, the water plant project, housing
upgrades and other sustaining projects.
Kloof
March
2009
December
2008
Gold produced
- kg
5,406
4,717
-
000’ozs
173.8
151.7
Yield - underground
- g/t
9.8
7.5
- combined
- g/t
7.8
6.1
Total cash cost
- R/kg
133,796
156,689
-
US$/oz
419
496
Notional cash expenditure
- R/kg
182,612
216,981
-
US$/oz
572
687
Gold production increased by 15 per cent from 4,717 kilograms (151,700 ounces)
in the December quarter to 5,406 kilograms (173,800 ounces) in the March
quarter. The increase in production was as a result of major clean-ups done
during the quarter which improved the Mine Call Factor. As a result of the work
stoppages due to safety and a slow start-up after the Christmas break, the
underground tonnage decreased from 614,000 tons to 543,000 tons. The
decrease in underground tonnage was offset by an increase in yield from 7.5
grams per ton to 9.8 grams per ton.
Total main development decreased by 23 per cent for the March quarter to 4.487
metres and on-reef development decreased by 34 per cent to 709 metres. In
addition to the safety related stoppages, the development performance was also
affected by crews assisting in backlog secondary support, construction and mud
loading. The average development value decreased by 11 per cent to 1,698
cm.g/t in the March quarter due to a dip in grades on the Kloof Reef.
Operating costs decreased by 1 per cent from R773 million (US$76 million) in the
December quarter to R763 million (US$76 million) in the March quarter. The
decrease was mainly attributable to a reduction in underground volumes, partially
offset by a decrease in the capitalised Ore Reserve Development (ORD). The
higher gold output resulted in a 15 per cent decrease in total cash cost from
R156,689 per kilogram (US$496 per ounce) to R133,796 per kilogram(US$419
per ounce) .
Operating profit increased from R426 million (US$44 million) in the December
quarter to R794 million (US$83 million) in the March quarter due to the increase
in gold production and the higher gold price.
Capital expenditure at R224 million (US$22 million) decreased by 11 per cent
compared with the previous quarter’s expenditure of R251 million (US$25
million). This decrease was mainly due to the Main shaft rehabilitation
programme work that was completed during December 2008 as planned.
Notional cash expenditure decreased by 16 per cent from R216,981 per kilogram
(US$687 per ounce) to R182,612 per kilogram(US$572 per ounce).
The estimate for the June quarter is as follows:
Gold produced – 5,400 kilogram (174,000 ounces)
Total cash cost* – R139,000 per kilogram (US$480 per ounce)
Capital expenditure* – R255 million (US$28 million)
Notional cash expenditure* – R193,000 per kilogram (US$665 per ounce)
* Based on an exchange rate of US$1 = R9.00
Gold production for the June quarter is estimated to be similar to the March
quarter due to further curtailments of pillar mining in the Main shaft area post the
fatal accidents in January and February of this year and safety stoppages as part
of the “stop, fix and continue campaign”. Total cash cost per ounce should
increase in the June quarter as a result of the anticipated increase in electricity
costs. Capital expenditure is planned at around R255 million and includes a
number of new projects, including the 69 decline, as well as delivery of new
technology equipment and an increase in ORD.
in the December quarter to 5,406 kilograms (173,800 ounces) in the March
quarter. The increase in production was as a result of major clean-ups done
during the quarter which improved the Mine Call Factor. As a result of the work
stoppages due to safety and a slow start-up after the Christmas break, the
underground tonnage decreased from 614,000 tons to 543,000 tons. The
decrease in underground tonnage was offset by an increase in yield from 7.5
grams per ton to 9.8 grams per ton.
Total main development decreased by 23 per cent for the March quarter to 4.487
metres and on-reef development decreased by 34 per cent to 709 metres. In
addition to the safety related stoppages, the development performance was also
affected by crews assisting in backlog secondary support, construction and mud
loading. The average development value decreased by 11 per cent to 1,698
cm.g/t in the March quarter due to a dip in grades on the Kloof Reef.
Operating costs decreased by 1 per cent from R773 million (US$76 million) in the
December quarter to R763 million (US$76 million) in the March quarter. The
decrease was mainly attributable to a reduction in underground volumes, partially
offset by a decrease in the capitalised Ore Reserve Development (ORD). The
higher gold output resulted in a 15 per cent decrease in total cash cost from
R156,689 per kilogram (US$496 per ounce) to R133,796 per kilogram(US$419
per ounce) .
Operating profit increased from R426 million (US$44 million) in the December
quarter to R794 million (US$83 million) in the March quarter due to the increase
in gold production and the higher gold price.
Capital expenditure at R224 million (US$22 million) decreased by 11 per cent
compared with the previous quarter’s expenditure of R251 million (US$25
million). This decrease was mainly due to the Main shaft rehabilitation
programme work that was completed during December 2008 as planned.
Notional cash expenditure decreased by 16 per cent from R216,981 per kilogram
(US$687 per ounce) to R182,612 per kilogram(US$572 per ounce).
The estimate for the June quarter is as follows:
Gold produced – 5,400 kilogram (174,000 ounces)
Total cash cost* – R139,000 per kilogram (US$480 per ounce)
Capital expenditure* – R255 million (US$28 million)
Notional cash expenditure* – R193,000 per kilogram (US$665 per ounce)
* Based on an exchange rate of US$1 = R9.00
Gold production for the June quarter is estimated to be similar to the March
quarter due to further curtailments of pillar mining in the Main shaft area post the
fatal accidents in January and February of this year and safety stoppages as part
of the “stop, fix and continue campaign”. Total cash cost per ounce should
increase in the June quarter as a result of the anticipated increase in electricity
costs. Capital expenditure is planned at around R255 million and includes a
number of new projects, including the 69 decline, as well as delivery of new
technology equipment and an increase in ORD.
Beatrix
March
2009
December
2008
Gold produced
- kg
2,489
3,320
-
000’ozs
80.0
106.7
Yield
-
g/t
4.0
4.2
Total cash cost
- R/kg
193,532
144,759
-
US$/oz
606
459
Notional cash expenditure
- R/kg
259,622
195,723
-
US$/oz
813
620
Gold production at Beatrix decreased by 25 per cent from 3,320 kilograms
(106,700 ounces) in the December quarter to 2,489 kilograms (80,000 ounces) in
the March quarter. Tons milled decreased from 798,000 tons to 629,000 tons as
a result of lower volumes achieved across the three main production shafts due
to limited flexibility, hoisting constraints as a result of a number of stoppages due
to electronic problems with 3 shaft’s rock winder and a slow start-up after the
Christmas break. Yield decreased from 4.2 grams per ton in the December
quarter to 4.0 grams per ton for the March quarter, mainly as a result of an
increase in stope width and lower values mined. Unpay panels have been
stopped and grades are expected to improve.
Development volumes showed a 10 per cent quarter on quarter reduction due to
a strong focus on safety that included cleaning of haulages, removing mud
accumulations and bringing construction work up to date. Total main
development decreased from 8,054 metres to 7,251 metres, main on-reef
development decreased from 1,808 metres to 1,765 metres and main off-reef
metres decreased from 5,261 metres to 4,414 metres. The decrease in
development values and metres is due to a slow start up post the Christmas
break and bringing equipping of development ends up to standard, together with
the cover drilling programme being behind schedule, hoisting constraint at 3
shaft, electricity interruptions and delays due to smectite, water and methane
intersections. The main on-reef development returned values of 819 cmg/t for
the quarter, compared with 1,104 cmg/t for the December quarter. Values are in
line with the forecast as per the mining schedule.
Operating costs increased from R503 million (US$50 million) in the December
quarter to R508 million (US$51 million) in the March quarter. The increase in
costs was mainly due to increased maintenance overtime worked over the
Christmas break, partially offset by lower bonuses due to the lower production.
Total cash cost increased by 34 per cent from R144,759 per kilogram (US$459
per ounce) in the December quarter to R193,532 per kilogram in the March
quarter (US$606 per ounce).
Operating profit decreased by 39 per cent from R349 million (US$37 million) in
the December quarter to R213 million (US$21 million) in the March quarter.
Capital expenditure decreased by 5 per cent from R147 million (US$14 million) in
the December quarter to R139 million (US$14 million) in the March quarter
mainly due to lower ore reserve development.
Notional cash expenditure increased from R195,723 per kilogram (US$620 per
ounce) to R259,622 per kilogram (US$813 per ounce).
The estimate for the June quarter is as follows:
Gold produced – 2,900 kilogram (93,000 ounces)
Total cash cost* – R176,000 per kilogram (US$610 per ounce)
Capital expenditure* – R175 million (US$20 million)
Notional cash expenditure* – R245,000 per kilogram (US$845 per ounce)
* Based on an exchange rate of US$1 = R9.00.
Gold production is expected to improve in the June quarter as a result of
improved grades and volumes. Notional cash expenditure in the June quarter will
mainly be affected by an increase in electricity costs and increased capital
expenditure on drill rigs, which will be used for development and to open ore
reserves, offset by the increased production.
(106,700 ounces) in the December quarter to 2,489 kilograms (80,000 ounces) in
the March quarter. Tons milled decreased from 798,000 tons to 629,000 tons as
a result of lower volumes achieved across the three main production shafts due
to limited flexibility, hoisting constraints as a result of a number of stoppages due
to electronic problems with 3 shaft’s rock winder and a slow start-up after the
Christmas break. Yield decreased from 4.2 grams per ton in the December
quarter to 4.0 grams per ton for the March quarter, mainly as a result of an
increase in stope width and lower values mined. Unpay panels have been
stopped and grades are expected to improve.
Development volumes showed a 10 per cent quarter on quarter reduction due to
a strong focus on safety that included cleaning of haulages, removing mud
accumulations and bringing construction work up to date. Total main
development decreased from 8,054 metres to 7,251 metres, main on-reef
development decreased from 1,808 metres to 1,765 metres and main off-reef
metres decreased from 5,261 metres to 4,414 metres. The decrease in
development values and metres is due to a slow start up post the Christmas
break and bringing equipping of development ends up to standard, together with
the cover drilling programme being behind schedule, hoisting constraint at 3
shaft, electricity interruptions and delays due to smectite, water and methane
intersections. The main on-reef development returned values of 819 cmg/t for
the quarter, compared with 1,104 cmg/t for the December quarter. Values are in
line with the forecast as per the mining schedule.
Operating costs increased from R503 million (US$50 million) in the December
quarter to R508 million (US$51 million) in the March quarter. The increase in
costs was mainly due to increased maintenance overtime worked over the
Christmas break, partially offset by lower bonuses due to the lower production.
Total cash cost increased by 34 per cent from R144,759 per kilogram (US$459
per ounce) in the December quarter to R193,532 per kilogram in the March
quarter (US$606 per ounce).
Operating profit decreased by 39 per cent from R349 million (US$37 million) in
the December quarter to R213 million (US$21 million) in the March quarter.
Capital expenditure decreased by 5 per cent from R147 million (US$14 million) in
the December quarter to R139 million (US$14 million) in the March quarter
mainly due to lower ore reserve development.
Notional cash expenditure increased from R195,723 per kilogram (US$620 per
ounce) to R259,622 per kilogram (US$813 per ounce).
The estimate for the June quarter is as follows:
Gold produced – 2,900 kilogram (93,000 ounces)
Total cash cost* – R176,000 per kilogram (US$610 per ounce)
Capital expenditure* – R175 million (US$20 million)
Notional cash expenditure* – R245,000 per kilogram (US$845 per ounce)
* Based on an exchange rate of US$1 = R9.00.
Gold production is expected to improve in the June quarter as a result of
improved grades and volumes. Notional cash expenditure in the June quarter will
mainly be affected by an increase in electricity costs and increased capital
expenditure on drill rigs, which will be used for development and to open ore
reserves, offset by the increased production.
GOLD FIELDS RESULTS Q3F2009 I 6
International operations
Ghana
Tarkwa
March
2009
December
2008
Gold produced
- 000’ozs
152.2
139.3
Yield - heap leach
- g/t
0.8
0.6
- CIL plant
- g/t
1.3
1.4
- combined
- g/t
0.9
0.8
Total cash cost
- US$/oz
503
563
Notional cash expenditure - US$/oz
778
1,078
Gold production increased by 9 per cent from 139,300 ounces in the December
quarter to 152,200 ounces in the March quarter as the CIL expansion
commenced its build-up to full production. This build-up is proving to be slower
than initially anticipated due to several commissioning problems experienced
during January and February. This includes the failure of the auxiliary stockpile
feed system which prevented the mill from being fed at design capacity causing
major blending problems, as well as process flow problems which choked the
thickners at the new plant. These problems have largely been resolved and the
new plant has been operating at an average of approximately 33,000 tons milled
per day from mid March, at times exceeding design capacity.
Total tons mined, including capital stripping, increased from 34.3 million tons to
35.7 million tons. Ore mined decreased from 5.7 million tons in the December
quarter to 5.2 million tons in the March quarter as delays at the CIL plant resulted
in a build-up at the run of mine stockpiles, necessitating a switch from ore to pre-
strip mining during the quarter. The head grade of 1.13 grams per ton decreased
from last quarter’s 1.18 grams per ton as per the mine schedule. The strip ratio
achieved was 5.91 against the December quarter’s 5.01.
Total feed to the heap leach sections decreased from 4.01 million tons for the
December quarter to 2.84 million tons in the March quarter. This decline is
mainly due to the permanent cessation of stacking at the South heap leach pad.
Heap leach yield for the quarter increased to 0.8 grams per ton compared with
0.6 grams per ton due to the release of GIP at the South heap leach after
cessation of stacking at the South heap leach and an increase in ore directed to
the mill. The heap leach facilities produced 71,800 ounces, 11 per cent lower
than the 81,300 ounces produced in the December quarter.
The total feed to the CIL plant was 2.37 million tons compared with 1.37 million
tons in the December quarter. CIL yield was slightly lower at 1.3 grams per ton
compared with 1.4 grams per ton for the December quarter. The CIL plant
produced 80,400 ounces in the March quarter compared with 58,000 ounces in
the December quarter.
Operating costs, including GIP movements, were US$2 million lower than the
December quarter at US$76 million (R761 million). The lower operating cost is
mainly due to the impact of lower power costs associated with a weaker local
currency and a reduction of fuel and explosive prices.
Operating profit at US$61 million (R594 million) in the March quarter compares
with US$34 million (R351 million) in the December quarter.
Capital expenditure decreased from US$65 million (R642 million) to US$34
million (R364 million) for the quarter, with expenditure on the CIL plant (US$5
million), relocation of VRA substation (US$6 million) and pre-stripping at the
Teberebie cutback (US$17 million) being the major capital expenditure items for
the quarter.
Notional cash expenditure for the quarter was US$778 per ounce, against the
previous quarter’s US$1,078 per ounce, reflecting the lower capital expenditure
as a result of the completion of the CIL expansion.
The estimate for the June quarter is as follows:
Gold produced – 170,000 ounces.
Total cash cost – US$500 per ounce.
Capital expenditure – US$33 million.
Notional cash expenditure – US$700 per ounce.
The estimated increase in gold production is due to increased production from
the newly commissioned CIL plant expansion.
quarter to 152,200 ounces in the March quarter as the CIL expansion
commenced its build-up to full production. This build-up is proving to be slower
than initially anticipated due to several commissioning problems experienced
during January and February. This includes the failure of the auxiliary stockpile
feed system which prevented the mill from being fed at design capacity causing
major blending problems, as well as process flow problems which choked the
thickners at the new plant. These problems have largely been resolved and the
new plant has been operating at an average of approximately 33,000 tons milled
per day from mid March, at times exceeding design capacity.
Total tons mined, including capital stripping, increased from 34.3 million tons to
35.7 million tons. Ore mined decreased from 5.7 million tons in the December
quarter to 5.2 million tons in the March quarter as delays at the CIL plant resulted
in a build-up at the run of mine stockpiles, necessitating a switch from ore to pre-
strip mining during the quarter. The head grade of 1.13 grams per ton decreased
from last quarter’s 1.18 grams per ton as per the mine schedule. The strip ratio
achieved was 5.91 against the December quarter’s 5.01.
Total feed to the heap leach sections decreased from 4.01 million tons for the
December quarter to 2.84 million tons in the March quarter. This decline is
mainly due to the permanent cessation of stacking at the South heap leach pad.
Heap leach yield for the quarter increased to 0.8 grams per ton compared with
0.6 grams per ton due to the release of GIP at the South heap leach after
cessation of stacking at the South heap leach and an increase in ore directed to
the mill. The heap leach facilities produced 71,800 ounces, 11 per cent lower
than the 81,300 ounces produced in the December quarter.
The total feed to the CIL plant was 2.37 million tons compared with 1.37 million
tons in the December quarter. CIL yield was slightly lower at 1.3 grams per ton
compared with 1.4 grams per ton for the December quarter. The CIL plant
produced 80,400 ounces in the March quarter compared with 58,000 ounces in
the December quarter.
Operating costs, including GIP movements, were US$2 million lower than the
December quarter at US$76 million (R761 million). The lower operating cost is
mainly due to the impact of lower power costs associated with a weaker local
currency and a reduction of fuel and explosive prices.
Operating profit at US$61 million (R594 million) in the March quarter compares
with US$34 million (R351 million) in the December quarter.
Capital expenditure decreased from US$65 million (R642 million) to US$34
million (R364 million) for the quarter, with expenditure on the CIL plant (US$5
million), relocation of VRA substation (US$6 million) and pre-stripping at the
Teberebie cutback (US$17 million) being the major capital expenditure items for
the quarter.
Notional cash expenditure for the quarter was US$778 per ounce, against the
previous quarter’s US$1,078 per ounce, reflecting the lower capital expenditure
as a result of the completion of the CIL expansion.
The estimate for the June quarter is as follows:
Gold produced – 170,000 ounces.
Total cash cost – US$500 per ounce.
Capital expenditure – US$33 million.
Notional cash expenditure – US$700 per ounce.
The estimated increase in gold production is due to increased production from
the newly commissioned CIL plant expansion.
Damang
March
2009
December
2008
Gold produced
- 000’ozs
52.5
50.4
Yield
-
g/t
1.2
1.3
Total cash cost
- US$/oz
643
622
Notional cash expenditure - US$/oz
669
753
Gold production increased 4 per cent from 50,400 ounces in the December
quarter to 52,500 ounces in the March quarter. This increase was mainly due to
improved blast fragmentation and plant availability, which in turn increased the
mill throughput from 1.2 million tons to 1.3 million tons.
Total tons mined, including capital stripping, increased by 4 per cent from 4.6
million tons in the December quarter to 4.8 million tons in the March quarter. Ore
mined decreased from 1.12 million tons to 1.05 million tons and the strip ratio
increased from 3.15 to 3.59 in line with the mine plan.
Operating costs, including gold-in-process movements, were similar at US$32
million. Although a decrease in power and fuel costs was realised, this was
offset by mining more expensive Damang pit cutback ounces. Total cash cost
increased from US$622 per ounce to US$643 per ounce reflecting the increased
strip ratio.
quarter to 52,500 ounces in the March quarter. This increase was mainly due to
improved blast fragmentation and plant availability, which in turn increased the
mill throughput from 1.2 million tons to 1.3 million tons.
Total tons mined, including capital stripping, increased by 4 per cent from 4.6
million tons in the December quarter to 4.8 million tons in the March quarter. Ore
mined decreased from 1.12 million tons to 1.05 million tons and the strip ratio
increased from 3.15 to 3.59 in line with the mine plan.
Operating costs, including gold-in-process movements, were similar at US$32
million. Although a decrease in power and fuel costs was realised, this was
offset by mining more expensive Damang pit cutback ounces. Total cash cost
increased from US$622 per ounce to US$643 per ounce reflecting the increased
strip ratio.
Operating profit for the March quarter amounted to US$16 million (R152 million)
compared with US$9 million (R83 million) achieved in the December quarter.
Capital expenditure at US$4 million (R37 million) was marginally higher than the
December quarter, with the majority of this expenditure on development at Rex
open pit.
Notional cash expenditure for the quarter was lower at US$669 per ounce
compared with the previous quarter’s US$753 per ounce mainly as a result of
higher production.
The estimate for the June quarter is as follows:
compared with US$9 million (R83 million) achieved in the December quarter.
Capital expenditure at US$4 million (R37 million) was marginally higher than the
December quarter, with the majority of this expenditure on development at Rex
open pit.
Notional cash expenditure for the quarter was lower at US$669 per ounce
compared with the previous quarter’s US$753 per ounce mainly as a result of
higher production.
The estimate for the June quarter is as follows:
Gold produced – 52,000 ounces
Total cash costs – US$635 per ounce
Capital expenditure – US$4 million
Notional cash expenditure – US$715 per ounce
Total cash costs – US$635 per ounce
Capital expenditure – US$4 million
Notional cash expenditure – US$715 per ounce
Peru
Cerro Corona
March
2009
December
2008
Gold produced
- 000’oz
31.8
26.1
Copper produced
- tons
8,000
6,200
Total equivalent gold produced - 000’ eq oz
61.4
61.5
Total equivalent gold sold
- 000’ eq oz
65.3
65.5
Yield - gold
- g/t
0.7
0.8
- copper
- %
0.58
0.59
- combined
- g/t
1.3
1.6
Total cash cost
- US$/ eq oz
422
355
Notional cash expenditure
- US$/ eq oz
762
1,201
Production of 61,400 equivalent ounces was recorded during the March quarter,
compared with 61,500 equivalent ounces in the December quarter. During the
March quarter concentrate with payable content of 35,600 ounces of gold was
sold at an average gold price of US$900 per ounce and 8,100 tons of copper
were sold at an average copper price of US$3,400 per ton, net of treatment and
refining charges.
compared with 61,500 equivalent ounces in the December quarter. During the
March quarter concentrate with payable content of 35,600 ounces of gold was
sold at an average gold price of US$900 per ounce and 8,100 tons of copper
were sold at an average copper price of US$3,400 per ton, net of treatment and
refining charges.
7 I GOLD FIELDS RESULTS Q3F2009
The table below demonstrates the production sensitivity impact of the copper and
gold price relationship on equivalent ounce calculations.
gold price relationship on equivalent ounce calculations.
Guidance
at start of
at start of
March
quarter
Actual
production
determined
at guidance
prices
Actual
production
and actual
prices
June
quarter
forecast
Gold price
- US$/oz
850
850
900
900
Copper price
- US$/t
3,200
3,200
3,400
4,350
Gold produced
- oz
34,600
31,800
31,800
32,000
Copper produced
- tons
7,300
8,000
8,000
8,200
Copper equivalent as gold - oz
27,400
30,200
29,700
40,000
Total gold equivalent
- eq oz
62,000
61,900
61,400
72,000
Gold equivalent = gold produced (ounces) plus {[copper produced (tons)
multiplied by copper price (US$ per ton)] divided by gold price (US$ per ounce)}.
Total tons mined increased as planned from 1.74 million tons in the December
quarter to 2.52 million tons during the March quarter. Ore mined increased from
1.27 million tons to 1.57 million tons in order to fill the plant which had its first full
quarter of production. The overall strip ratio for the March quarter was 0.61
compared with the life of mine strip ratio of 0.66.
Ore processed increased from 1.20 million tons in the December quarter to 1.43
million tons in the March quarter, with concentrate production at 36,000 dry
metric tons in the March quarter compared with 33,000 dry metric tons in the
December quarter. Gold yield for the quarter was 0.70 grams per ton and copper
yield was 0.58 per cent compared with 0.80 grams per ton and 0.59 per cent in
the December quarter. Copper produced was higher due to an increase in
oxidized ore treated.
Operating costs including gold-in-process movements increased from US$26
million (R222 million) in the December quarter to US$31 million (R289 million) in
the March quarter and total cash cost was reported at US$422 per equivalent
ounce sold compared with US$355 per equivalent ounce sold in the December
quarter.
Operating profit was reported at US$32 million (R297 million) compared with
US$15 million (R131 million) in the December quarter.
Capital expenditure decreased from US$56 million (R515 million) in the
December quarter to US$19 million (R207 million) in the March quarter. The
reduced expenditure in the current quarter is due to the completion of the Cerro
Corona project phase in December of US$38 million and reduced expenditure on
the Las Aguilas Tailings Management facility. During March US$13 million was
spent on construction of the Las Aguilas Tailings Management Facility (TMF).
Notional cash expenditure for the March quarter at US$762 per equivalent ounce
compares with US$1,201 per equivalent ounce in the December quarter. Capital
expenditure of approximately US$20 million per quarter is expected to be
incurred until the end of F2010 due to the front-ending of the TMF. Thereafter,
sustaining capital is expected to decrease to approximately US$40 million per
annum.
Cash flow from operations for the quarter was US$12 million (R119 million),
compared with cash utilised in operations of US$24 million (R235 million) in the
December quarter. The positive cash from operations was a first for Cerro
Corona. To optimize the cash flow and minimize the effect on working capital, all
efforts are being made to keep concentrate stocks at a minimum level. At quarter
end concentrate stock on hand was 1,557 tons.
The estimate for the June 2009 quarter is as follows:
Metals (gold and copper) produced – 72,000 equivalent ounces*
Gold produced – 32,000 ounces
Copper produced – 8,200 tons
Total cash cost* – US$390 per equivalent ounce
Capital expenditure – US$20 million
Notional cash expenditure* – US$670 per equivalent ounce
* Equivalent ounces are based on a gold price of US$900 per ounce and copper
multiplied by copper price (US$ per ton)] divided by gold price (US$ per ounce)}.
Total tons mined increased as planned from 1.74 million tons in the December
quarter to 2.52 million tons during the March quarter. Ore mined increased from
1.27 million tons to 1.57 million tons in order to fill the plant which had its first full
quarter of production. The overall strip ratio for the March quarter was 0.61
compared with the life of mine strip ratio of 0.66.
Ore processed increased from 1.20 million tons in the December quarter to 1.43
million tons in the March quarter, with concentrate production at 36,000 dry
metric tons in the March quarter compared with 33,000 dry metric tons in the
December quarter. Gold yield for the quarter was 0.70 grams per ton and copper
yield was 0.58 per cent compared with 0.80 grams per ton and 0.59 per cent in
the December quarter. Copper produced was higher due to an increase in
oxidized ore treated.
Operating costs including gold-in-process movements increased from US$26
million (R222 million) in the December quarter to US$31 million (R289 million) in
the March quarter and total cash cost was reported at US$422 per equivalent
ounce sold compared with US$355 per equivalent ounce sold in the December
quarter.
Operating profit was reported at US$32 million (R297 million) compared with
US$15 million (R131 million) in the December quarter.
Capital expenditure decreased from US$56 million (R515 million) in the
December quarter to US$19 million (R207 million) in the March quarter. The
reduced expenditure in the current quarter is due to the completion of the Cerro
Corona project phase in December of US$38 million and reduced expenditure on
the Las Aguilas Tailings Management facility. During March US$13 million was
spent on construction of the Las Aguilas Tailings Management Facility (TMF).
Notional cash expenditure for the March quarter at US$762 per equivalent ounce
compares with US$1,201 per equivalent ounce in the December quarter. Capital
expenditure of approximately US$20 million per quarter is expected to be
incurred until the end of F2010 due to the front-ending of the TMF. Thereafter,
sustaining capital is expected to decrease to approximately US$40 million per
annum.
Cash flow from operations for the quarter was US$12 million (R119 million),
compared with cash utilised in operations of US$24 million (R235 million) in the
December quarter. The positive cash from operations was a first for Cerro
Corona. To optimize the cash flow and minimize the effect on working capital, all
efforts are being made to keep concentrate stocks at a minimum level. At quarter
end concentrate stock on hand was 1,557 tons.
The estimate for the June 2009 quarter is as follows:
Metals (gold and copper) produced – 72,000 equivalent ounces*
Gold produced – 32,000 ounces
Copper produced – 8,200 tons
Total cash cost* – US$390 per equivalent ounce
Capital expenditure – US$20 million
Notional cash expenditure* – US$670 per equivalent ounce
* Equivalent ounces are based on a gold price of US$900 per ounce and copper
price of US$4,350 per ton.
Australia
St Ives
March
2009
December
2008
Gold produced
- 000’ozs
109.5
108.7
Yield - heap leach
- g/t
0.5
0.5
- milling
- g/t
2.7
2.5
- combined
- g/t
1.9
1.8
Total cash cost
- A$/oz
811
807
-
US$/oz
538
551
Notional cash expenditure - A$/oz
978
996
-
US$/oz
649
679
Gold production increased by 1 per cent from 108,700 ounces in the December
quarter to 109,500 ounces in the March quarter.
Gold produced from the Lefroy mill increased from 99,700 ounces to 100,100
ounces. Tons milled decreased by 2 per cent to 1.20 million tons offset by the
head grade which increased by 10 per cent from 2.7 grams per ton to 3.0 grams
per ton.
Gold produced from heap leach increased by 400 ounces over the previous
quarter, to stand at 9,400 ounces for the March quarter. Tons treated from the
heap leach increased from 610,000 tons to 625,000 tons and head grade
increased from 0.8 grams per ton to 0.9 grams per ton. This was partially offset
by slightly lower recoveries.
At the open pit operations 1.4 million tons of ore were mined for the quarter, up
on the 1.3 million tons of ore mined in the December quarter. Grade increased
from 1.2 grams per ton to 1.7 grams per ton. The increase in grade was due to
higher grade ore mined from the Agamemnon pit and the Leviathan pit cutback
reaching higher grade regions. The average strip ratio including capital waste
was 4.0 in the March quarter, compared with 5.8 in the December quarter.
At the underground operations 322,000 tons of ore was mined at 5.2 grams per
ton compared with 324,000 tons of ore mined at 5.4 grams per ton in the
December quarter. The lower grade quarter on quarter was mainly due to lower
grade stopes being mined at Cave Rocks, which achieved full production in the
month of December. Underground recoveries were also lower due mainly to the
increase in the lower grade ore from Cave Rocks.
Operating costs, including gold-in-process movements, decreased from A$90
million (R601 million) in the December quarter to A$84 million (R556 million) in
the March quarter. The decrease was due primarily to the lower stripping ratios
and a credit to GIP of A$5 million (R35 million) due to a build-up of gold inventory
compared with a charge of A$6 million (R38 million) in the previous quarter.
These gains were partially offset by an additional A$3 million (R18 million) of third
party royalties paid due to the higher Australian dollar gold price. Total cash cost
of US$538 per ounce (AS$811 per ounce) was 2 per cent lower than the US$551
per ounce (AS$807 per ounce) achieved in the December quarter.
Operating profit increased from A$40 million (R268 million) to A$66 million (R442
million) due to the increased ounces produced, the stronger Australian dollar gold
price and lower strip ratios at the open pit operations.
Capital expenditure decreased from A$24 million (R162 million) in the December
quarter to A$18 million (R115 million) in the March quarter. The reduction in
capital was due to the completion of the project phase of the Cave Rocks
underground mine which reached full production in the month of December and
the completion of the pre-stripping of the Grinder open pit during the December
quarter.
Notional cash expenditure decreased from A$996 (US$679) per ounce to A$978
(US$649) per ounce due to the increase in ounces produced and reduction in
capital expenditure.
The estimate for the June quarter is as follows:
Gold produced – 110,000 ounces
Total cash cost* – A$780 (US$560) per ounce
Capital expenditure* – A$20 million (US$14 million)
Notional cash expenditure* – A$1,015 (US$730) per ounce
* Based on A$1=US$0.72.
quarter to 109,500 ounces in the March quarter.
Gold produced from the Lefroy mill increased from 99,700 ounces to 100,100
ounces. Tons milled decreased by 2 per cent to 1.20 million tons offset by the
head grade which increased by 10 per cent from 2.7 grams per ton to 3.0 grams
per ton.
Gold produced from heap leach increased by 400 ounces over the previous
quarter, to stand at 9,400 ounces for the March quarter. Tons treated from the
heap leach increased from 610,000 tons to 625,000 tons and head grade
increased from 0.8 grams per ton to 0.9 grams per ton. This was partially offset
by slightly lower recoveries.
At the open pit operations 1.4 million tons of ore were mined for the quarter, up
on the 1.3 million tons of ore mined in the December quarter. Grade increased
from 1.2 grams per ton to 1.7 grams per ton. The increase in grade was due to
higher grade ore mined from the Agamemnon pit and the Leviathan pit cutback
reaching higher grade regions. The average strip ratio including capital waste
was 4.0 in the March quarter, compared with 5.8 in the December quarter.
At the underground operations 322,000 tons of ore was mined at 5.2 grams per
ton compared with 324,000 tons of ore mined at 5.4 grams per ton in the
December quarter. The lower grade quarter on quarter was mainly due to lower
grade stopes being mined at Cave Rocks, which achieved full production in the
month of December. Underground recoveries were also lower due mainly to the
increase in the lower grade ore from Cave Rocks.
Operating costs, including gold-in-process movements, decreased from A$90
million (R601 million) in the December quarter to A$84 million (R556 million) in
the March quarter. The decrease was due primarily to the lower stripping ratios
and a credit to GIP of A$5 million (R35 million) due to a build-up of gold inventory
compared with a charge of A$6 million (R38 million) in the previous quarter.
These gains were partially offset by an additional A$3 million (R18 million) of third
party royalties paid due to the higher Australian dollar gold price. Total cash cost
of US$538 per ounce (AS$811 per ounce) was 2 per cent lower than the US$551
per ounce (AS$807 per ounce) achieved in the December quarter.
Operating profit increased from A$40 million (R268 million) to A$66 million (R442
million) due to the increased ounces produced, the stronger Australian dollar gold
price and lower strip ratios at the open pit operations.
Capital expenditure decreased from A$24 million (R162 million) in the December
quarter to A$18 million (R115 million) in the March quarter. The reduction in
capital was due to the completion of the project phase of the Cave Rocks
underground mine which reached full production in the month of December and
the completion of the pre-stripping of the Grinder open pit during the December
quarter.
Notional cash expenditure decreased from A$996 (US$679) per ounce to A$978
(US$649) per ounce due to the increase in ounces produced and reduction in
capital expenditure.
The estimate for the June quarter is as follows:
Gold produced – 110,000 ounces
Total cash cost* – A$780 (US$560) per ounce
Capital expenditure* – A$20 million (US$14 million)
Notional cash expenditure* – A$1,015 (US$730) per ounce
* Based on A$1=US$0.72.
GOLD FIELDS RESULTS Q3F2009 I 8
Agnew
March
2009
December
2008
Gold produced
- 000’ozs
49.5
45.0
Yield
-
g/t 5.6
5.5
Total cash cost
- A$/oz
535
543
-
US$/oz
355
371
Notional cash expenditure - A$/oz
725
809
-
US$/oz
481
552
Gold production increased 10 per cent from 45,000 ounces in the December
quarter to 49,500 ounces in the March quarter.
Ore mined from underground increased by 14 per cent from 169,000 tons in the
December quarter at a head grade of 8.3 grams per ton to 193,000 tons in the
March quarter at a head grade of 7.7 grams per ton. The increase was due to
improved equipment availability and increased production from Main Lode.
Decline and capital development increased from 471 metres in the December
quarter to 673 metres in the March quarter. A decline was commenced to link
Main Lode to Kim Lode at a depth of 600 metres below surface to improve
haulage, logistics and ventilation.
The combined grade mined was lower quarter on quarter due to a reduction in
Kim Lode production from 127,000 tons at 9.5 grams per ton to 98,000 tons at
9.3 grams per ton. The decrease in Kim Lode tons was due to back filling of old
stopes to safeguard infrastructure.
Operating costs, including gold-in-process movements, increased 4 per cent from
A$25 million (R167 million) in the December quarter to A$26 million (R171
million) in the March quarter. The increase in net operating cost was the result of
higher underground volumes and a drawdown of gold-in-process. Total cash
costs per ounce decreased 2 per cent from A$543 per ounce (US$371 per
ounce) in the December quarter to A$535 per ounce (US$355 per ounce) in the
March quarter due to the increased production.
Operating profit increased 37 per cent from A$30 million (R199 million) in the
December quarter to A$42 million (R276 million) in the March quarter. This was
due primarily to the increased revenue from a higher Australian dollar gold price
and increased production.
Capital expenditure was consistent with the prior quarter at A$12 million (R77
million). Expenditure was split A$5 million to capital works, A$3 million to
underground capital development and A$4 million to exploration. These splits
were very similar to the December quarter.
Notional cash expenditure decreased from A$809 per ounce (US$552) in the
December quarter to A$725 per ounce (US$481) in the March quarter.
The estimate for the June quarter is as follows:
Gold produced – 40,000 ounces
Total cash costs* – A$600 per ounce (US$430)
Capital expenditure* – A$12 million (US$9 million)
Notional cash expenditure* – A$910 per ounce (US$655)
* Based on A$1=US$0.72
Gold production for the June quarter will be impacted by a planned mill shut
down for two weeks. Capital expenditure is expected to remain steady at A$12
million (US$9 million). Notional cash expenditure per ounce is expected to
increase from A$725 (US$481) in the March quarter to A$910 (US$655) in the
June quarter due to lower gold production with similar levels of capital and
operating expenditure quarter-on-quarter.
quarter to 49,500 ounces in the March quarter.
Ore mined from underground increased by 14 per cent from 169,000 tons in the
December quarter at a head grade of 8.3 grams per ton to 193,000 tons in the
March quarter at a head grade of 7.7 grams per ton. The increase was due to
improved equipment availability and increased production from Main Lode.
Decline and capital development increased from 471 metres in the December
quarter to 673 metres in the March quarter. A decline was commenced to link
Main Lode to Kim Lode at a depth of 600 metres below surface to improve
haulage, logistics and ventilation.
The combined grade mined was lower quarter on quarter due to a reduction in
Kim Lode production from 127,000 tons at 9.5 grams per ton to 98,000 tons at
9.3 grams per ton. The decrease in Kim Lode tons was due to back filling of old
stopes to safeguard infrastructure.
Operating costs, including gold-in-process movements, increased 4 per cent from
A$25 million (R167 million) in the December quarter to A$26 million (R171
million) in the March quarter. The increase in net operating cost was the result of
higher underground volumes and a drawdown of gold-in-process. Total cash
costs per ounce decreased 2 per cent from A$543 per ounce (US$371 per
ounce) in the December quarter to A$535 per ounce (US$355 per ounce) in the
March quarter due to the increased production.
Operating profit increased 37 per cent from A$30 million (R199 million) in the
December quarter to A$42 million (R276 million) in the March quarter. This was
due primarily to the increased revenue from a higher Australian dollar gold price
and increased production.
Capital expenditure was consistent with the prior quarter at A$12 million (R77
million). Expenditure was split A$5 million to capital works, A$3 million to
underground capital development and A$4 million to exploration. These splits
were very similar to the December quarter.
Notional cash expenditure decreased from A$809 per ounce (US$552) in the
December quarter to A$725 per ounce (US$481) in the March quarter.
The estimate for the June quarter is as follows:
Gold produced – 40,000 ounces
Total cash costs* – A$600 per ounce (US$430)
Capital expenditure* – A$12 million (US$9 million)
Notional cash expenditure* – A$910 per ounce (US$655)
* Based on A$1=US$0.72
Gold production for the June quarter will be impacted by a planned mill shut
down for two weeks. Capital expenditure is expected to remain steady at A$12
million (US$9 million). Notional cash expenditure per ounce is expected to
increase from A$725 (US$481) in the March quarter to A$910 (US$655) in the
June quarter due to lower gold production with similar levels of capital and
operating expenditure quarter-on-quarter.
Capital and development projects
South Deep project
March
2009
December
2008
Gold produced
- kg
1,500
1,471
-
000’ozs
48.2
47.3
Yield - underground
- g/t
5.7
6.8
- combined
- g/t
4.4
5.2
Total cash cost
- R/kg
186,667
179,130
-
US$/oz
585
567
Notional cash expenditure
- R/kg
373,733
362,135
-
US$/oz
1,171
1,147
Gold production at South Deep increased by 2 per cent from 1,471 kilograms
(47,300 ounces) in the December quarter to 1,500 kilograms (48,200 ounces) in
the March quarter. Underground tonnage excluding waste increased by 25 per
cent from 205,000 tons in the December quarter to 257,000 tons in the March
quarter. The underground yield reduced from 6.8 grams per ton in the December
quarter to 5.7 grams per ton in the March quarter. This was mainly due to an
increase in lower grade de-stress mining as well as lower tonnage from the
higher grade 95 3 West project. Surface ore processed decreased from 36,000
tons to 25,000 tons for the quarter.
Development decreased by 27 per cent for the March quarter from 2,180 metres
to 1,596 metres. The new mine capital development in Phase 1, sub 95 level,
increased for the quarter from 582 metres to 646 metres. Development in the
current mine areas above 95 level decreased from 1,598 metres to 947 metres
as a result of the implementation of the one pass secondary support system.
Operating costs, increased by 7 per cent from R277 million (US$27 million) in the
December quarter to R296 million (US$30 million) in the March quarter. This
was mainly due to the increase in tonnage mined, increased maintenance over
the Christmas break, production incentives and additional support. The total cash
cost increased by 4 per cent from R179,130 per kilogram (US$567 per ounce) in
the December quarter to R186,667 per kilogram (US$585 per ounce) in the
March quarter.
An operating profit of R139 million (US$15 million) was realised in the March
quarter compared with the December quarter’s operating profit of R98 million
(US$13 million).
Capital expenditure increased marginally from R256 million (US$26 million) to
R265 million (US$27 million) in the March quarter in line with the planned project
build-up. The increased expenditure was mainly on low profile mechanised
equipment.
Notional cash expenditure increased by 4 per cent from R362,135 per kilogram
(US$1,147 per ounce) to R373,733 per kilogram (US$1,171 per ounce).
The estimate for the June quarter is as follows:
Gold produced – 1,600 kilograms (,51,000 ounces)
Total cash costs* – R180,000 per kilograms (US$625 per ounce)
Capital expenditure* – R360 million (US$40 million)
Notional cash expenditure* – R415,000 per kilogram (US$1,435 per ounce)
* Based on an exchange rate of US$1 = R9.00
The total cash cost is forecast to decrease as a result of the higher gold
production. Notional cash expenditure is forecast to increase in line with the
planned increase in capital expenditure. This is mainly due to increased
development, mechanised equipment and property purchased for the new slimes
dam.
South Deep will continue to focus on delivering the build-up to the planned
development metres, completion of the Twin shaft infrastructure, implementation
of the mechanised mining method for the de-stress cut in the massives mining
projects and delivery of increased production.
The recommissioning of South shaft for hoisting will be completed during the
June quarter and single shift hoisting is being planned in F2010 for the reef and
waste tonnage build up that will be in excess of the existing Twin shaft rock
winder capacity. Shaft refurbishment and the installation of pump and backfill
columns are required to continue during the remaining shifts at South shaft. The
second rock winder for the ventilation shaft at South Deep has been ordered and
should be commissioned by December 2011, ahead of the base plan schedule.
Current new mine development rates should deliver the infrastructure necessary
to build to full production of around 800,000 ounces per annum by December
2014. Total project expenditure is estimated at R8 billion in today’s money.
Significant projects being actioned are the new tailings dam and the rock winder
(47,300 ounces) in the December quarter to 1,500 kilograms (48,200 ounces) in
the March quarter. Underground tonnage excluding waste increased by 25 per
cent from 205,000 tons in the December quarter to 257,000 tons in the March
quarter. The underground yield reduced from 6.8 grams per ton in the December
quarter to 5.7 grams per ton in the March quarter. This was mainly due to an
increase in lower grade de-stress mining as well as lower tonnage from the
higher grade 95 3 West project. Surface ore processed decreased from 36,000
tons to 25,000 tons for the quarter.
Development decreased by 27 per cent for the March quarter from 2,180 metres
to 1,596 metres. The new mine capital development in Phase 1, sub 95 level,
increased for the quarter from 582 metres to 646 metres. Development in the
current mine areas above 95 level decreased from 1,598 metres to 947 metres
as a result of the implementation of the one pass secondary support system.
Operating costs, increased by 7 per cent from R277 million (US$27 million) in the
December quarter to R296 million (US$30 million) in the March quarter. This
was mainly due to the increase in tonnage mined, increased maintenance over
the Christmas break, production incentives and additional support. The total cash
cost increased by 4 per cent from R179,130 per kilogram (US$567 per ounce) in
the December quarter to R186,667 per kilogram (US$585 per ounce) in the
March quarter.
An operating profit of R139 million (US$15 million) was realised in the March
quarter compared with the December quarter’s operating profit of R98 million
(US$13 million).
Capital expenditure increased marginally from R256 million (US$26 million) to
R265 million (US$27 million) in the March quarter in line with the planned project
build-up. The increased expenditure was mainly on low profile mechanised
equipment.
Notional cash expenditure increased by 4 per cent from R362,135 per kilogram
(US$1,147 per ounce) to R373,733 per kilogram (US$1,171 per ounce).
The estimate for the June quarter is as follows:
Gold produced – 1,600 kilograms (,51,000 ounces)
Total cash costs* – R180,000 per kilograms (US$625 per ounce)
Capital expenditure* – R360 million (US$40 million)
Notional cash expenditure* – R415,000 per kilogram (US$1,435 per ounce)
* Based on an exchange rate of US$1 = R9.00
The total cash cost is forecast to decrease as a result of the higher gold
production. Notional cash expenditure is forecast to increase in line with the
planned increase in capital expenditure. This is mainly due to increased
development, mechanised equipment and property purchased for the new slimes
dam.
South Deep will continue to focus on delivering the build-up to the planned
development metres, completion of the Twin shaft infrastructure, implementation
of the mechanised mining method for the de-stress cut in the massives mining
projects and delivery of increased production.
The recommissioning of South shaft for hoisting will be completed during the
June quarter and single shift hoisting is being planned in F2010 for the reef and
waste tonnage build up that will be in excess of the existing Twin shaft rock
winder capacity. Shaft refurbishment and the installation of pump and backfill
columns are required to continue during the remaining shifts at South shaft. The
second rock winder for the ventilation shaft at South Deep has been ordered and
should be commissioned by December 2011, ahead of the base plan schedule.
Current new mine development rates should deliver the infrastructure necessary
to build to full production of around 800,000 ounces per annum by December
2014. Total project expenditure is estimated at R8 billion in today’s money.
Significant projects being actioned are the new tailings dam and the rock winder
9 I GOLD FIELDS RESULTS Q3F2009
for the ventilation shaft at the Twin shaft complex. This project is on track for
first tailings deposition by December 2010 as planned.
first tailings deposition by December 2010 as planned.
Quarter ended 31 March 2009 compared
with quarter ended 31 March 2008
with quarter ended 31 March 2008
Group attributable gold production increased by 5 per cent from 827,000 ounces
for the quarter ended March 2008 to 871,400 ounces produced in the March
2009 quarter.
At the South African operations gold production decreased from 519,800 ounces
to 517,200 ounces. Driefontein’s gold production increased from 209,900 ounces
to 215,200 ounces due to an increase in volumes. At Kloof gold production
decreased from 175,500 ounces to 173,800 ounces due to reduced pillar mining
for safety reasons. Beatrix’s gold production decreased from 81,700 ounces to
80,000 ounces due to reduced mining volumes at lower values. South Deep’s
gold production decreased from 52,600 ounces to 48,200 ounces due to the
termination of conventional VCR mining.
At the international operations total managed gold production increased from
370,500 ounces in March 2008 to 425,200 ounces in March 2009. This included
61,400 equivalent ounces from Cerro Corona not included in the previous year.
In Ghana, Damang’s gold production was similar at 52,500 ounces. Tarkwa was
8 per cent down at 152,200 ounces mainly due to lower volumes. In Australia, St
Ives increased marginally from 103,900 ounces to 109,500 ounces. The
increase at St Ives was due to an increase in underground production and an
increase in grade. Production at Agnew increased by 1 per cent.
Revenue increased by 39 per cent in rand terms from R6,109 million (US$820
million) to R8,510 million (US$869 million). The 31 per cent higher average gold
price of R289,095 per kilogram (US$906 per ounce) compares with R220,612 per
kilogram (US$921 per ounce) achieved in the March 2008 quarter. The rand
weakened from US$1 = R7.45 to US$1 = R9.93, or 33 per cent, while the
rand/Australian dollar weakened from A$1 = R6.73 to R6.59, or 2 per cent.
Operating costs, including gold-in-process movements, increased from R3,543
million to R4,524 million, or 33 per cent in rand terms due to the weaker rand. In
dollar terms operating costs decreased from US$474 million to US$453 million.
The increase in costs in rand terms was mainly due to the increases in cost at the
South African operations, exchange rate movements of R475 million mainly due
to the weaker rand and the inclusion of Cerro Corona (R289 million) not included
in the previous year. Added to this were wage increases, above inflation price
increases on fuel, steel and cyanide at all the operations and increased power
costs in Ghana and South Africa. Total cash cost for the Group in rand terms,
increased from R122,920 per kilogram (US$513 per ounce) to R150,301 per
kilogram (US$471 per ounce) due to the above factors.
At the South African operations operating costs increased by 15 per cent from
R2,126 million (US$285 million) in the March 2008 quarter to R2,434 million
(US$239 million) in the March 2009 quarter. This was due to the wage increases
and the increase in certain input costs such as steel, timber, chemicals, food and
power costs, partially offset by the cost saving initiatives implemented during the
year. The power rationing at the South African operations contributed to lower
costs in the March 2008 quarter. Unit cash costs at the South African operations
increased from R125,181 per kilogram to R143,340 per kilogram as a result of
the above.
At the international operations, operating costs increased from R1,417 million
(US$190 million) in the March 2008 quarter to R2,090 million (US$210 million) in
the March 2009 quarter. R289 million (US$31 million) was as a result of the
inclusion of Cerro Corona (not included in the previous year), while R474 million
was as a result of exchange rate movements. This was partly offset by cost
saving initiatives at all the international operations.
Operating profit increased from R2,566 million (US$347million) to R3,986 million
(US$416 million). After accounting for taxation, sundry costs and exceptional
items, net earnings amounted to R1,307 million (US$140 million), compared with
R1,248 million (US$167 million) in the March 2008 quarter.
Earnings excluding exceptional items, gains and losses on foreign exchange,
financial instruments, losses of associates after taxation and discontinued
operations amounted to R1,369 million (US$146 million) this quarter compared
with R1,001 million (US$137 million) in the March 2008 quarter.
for the quarter ended March 2008 to 871,400 ounces produced in the March
2009 quarter.
At the South African operations gold production decreased from 519,800 ounces
to 517,200 ounces. Driefontein’s gold production increased from 209,900 ounces
to 215,200 ounces due to an increase in volumes. At Kloof gold production
decreased from 175,500 ounces to 173,800 ounces due to reduced pillar mining
for safety reasons. Beatrix’s gold production decreased from 81,700 ounces to
80,000 ounces due to reduced mining volumes at lower values. South Deep’s
gold production decreased from 52,600 ounces to 48,200 ounces due to the
termination of conventional VCR mining.
At the international operations total managed gold production increased from
370,500 ounces in March 2008 to 425,200 ounces in March 2009. This included
61,400 equivalent ounces from Cerro Corona not included in the previous year.
In Ghana, Damang’s gold production was similar at 52,500 ounces. Tarkwa was
8 per cent down at 152,200 ounces mainly due to lower volumes. In Australia, St
Ives increased marginally from 103,900 ounces to 109,500 ounces. The
increase at St Ives was due to an increase in underground production and an
increase in grade. Production at Agnew increased by 1 per cent.
Revenue increased by 39 per cent in rand terms from R6,109 million (US$820
million) to R8,510 million (US$869 million). The 31 per cent higher average gold
price of R289,095 per kilogram (US$906 per ounce) compares with R220,612 per
kilogram (US$921 per ounce) achieved in the March 2008 quarter. The rand
weakened from US$1 = R7.45 to US$1 = R9.93, or 33 per cent, while the
rand/Australian dollar weakened from A$1 = R6.73 to R6.59, or 2 per cent.
Operating costs, including gold-in-process movements, increased from R3,543
million to R4,524 million, or 33 per cent in rand terms due to the weaker rand. In
dollar terms operating costs decreased from US$474 million to US$453 million.
The increase in costs in rand terms was mainly due to the increases in cost at the
South African operations, exchange rate movements of R475 million mainly due
to the weaker rand and the inclusion of Cerro Corona (R289 million) not included
in the previous year. Added to this were wage increases, above inflation price
increases on fuel, steel and cyanide at all the operations and increased power
costs in Ghana and South Africa. Total cash cost for the Group in rand terms,
increased from R122,920 per kilogram (US$513 per ounce) to R150,301 per
kilogram (US$471 per ounce) due to the above factors.
At the South African operations operating costs increased by 15 per cent from
R2,126 million (US$285 million) in the March 2008 quarter to R2,434 million
(US$239 million) in the March 2009 quarter. This was due to the wage increases
and the increase in certain input costs such as steel, timber, chemicals, food and
power costs, partially offset by the cost saving initiatives implemented during the
year. The power rationing at the South African operations contributed to lower
costs in the March 2008 quarter. Unit cash costs at the South African operations
increased from R125,181 per kilogram to R143,340 per kilogram as a result of
the above.
At the international operations, operating costs increased from R1,417 million
(US$190 million) in the March 2008 quarter to R2,090 million (US$210 million) in
the March 2009 quarter. R289 million (US$31 million) was as a result of the
inclusion of Cerro Corona (not included in the previous year), while R474 million
was as a result of exchange rate movements. This was partly offset by cost
saving initiatives at all the international operations.
Operating profit increased from R2,566 million (US$347million) to R3,986 million
(US$416 million). After accounting for taxation, sundry costs and exceptional
items, net earnings amounted to R1,307 million (US$140 million), compared with
R1,248 million (US$167 million) in the March 2008 quarter.
Earnings excluding exceptional items, gains and losses on foreign exchange,
financial instruments, losses of associates after taxation and discontinued
operations amounted to R1,369 million (US$146 million) this quarter compared
with R1,001 million (US$137 million) in the March 2008 quarter.
Exploration and corporate development
Gold Fields is increasing activity across its international exploration projects, with
drill rigs operating in eleven countries (Australia, Ghana, Peru, Mali, Chile, DRC,
Dominican Republic, China, USA, Indonesia and Kyrgyzstan). A total of 96,700
metres of drilling was completed with encouraging results returned from a
number of projects.
drill rigs operating in eleven countries (Australia, Ghana, Peru, Mali, Chile, DRC,
Dominican Republic, China, USA, Indonesia and Kyrgyzstan). A total of 96,700
metres of drilling was completed with encouraging results returned from a
number of projects.
The Group continues to devote a considerable effort to the evaluation of business
development opportunities which have become available due to the economic
crisis.
Notable milestones on three projects this quarter include the assumption of
operatorship at the Talas joint venture with Orsu Metals in Kyrgyzstan, the
conclusion of a Letter of Intent with Glencar Mining to joint venture its Komana
project in Mali and the exercise of a back-in right to earn 51 per cent of the
Chucapaca joint venture with partner Buenaventura in Southern Peru.
development opportunities which have become available due to the economic
crisis.
Notable milestones on three projects this quarter include the assumption of
operatorship at the Talas joint venture with Orsu Metals in Kyrgyzstan, the
conclusion of a Letter of Intent with Glencar Mining to joint venture its Komana
project in Mali and the exercise of a back-in right to earn 51 per cent of the
Chucapaca joint venture with partner Buenaventura in Southern Peru.
Advanced Exploration
At the Talas project, where Gold Fields can earn
up to a 70 per cent interest in a joint venture with Orsu Metals Corporation (TSX:
“OSU” and AIM: “OSU”), an aggressive drilling programme has continued
through the winter months. Results are encouraging with high grade sections.
Understanding of the geological controls continues to improve with the
recognition of at least three phases of mineralisation: 1.) Mo-Cu associated with
a coarse-grained porphyritic monzonitic intrusive and quartz carbonate veins, 2.)
Cu-Au-Mo associated with a medium grained monzodiorite and quartz vein
stockworks and 3.) Cu-Au-Mo associated with a diorite intrusive and
disseminated bornite and chalcopyrite.
In addition to the existing Sankarani joint venture in Mali, Gold Fields and
Glencar Mining plc (AIM: “GEX”) signed a Letter of Intent in late March 2009
where Gold Fields can earn up to 65 per cent in Glencar’s Komana project which
has a published resource of 1.25Moz. Gold Fields will also make an equity
investment in Glencar and will hold about 15 per cent of the company’s equity.
Drilling will commence as soon as possible.
At the Chucapaca project in southern Peru, Gold Fields and Compania de Minas
Buenaventura (NYSE “BVN”) are preparing to resume an aggressive resource
delineation drilling programme on the Canahuire discovery where recent drilling
by Buenaventura has intersected significant gold with locally important copper
grades associated with the margins of a breccia-hosted deposit. Gold Fields will
fund about US$6 million as part of its back-in right to earn 51 per cent in the
project.
“OSU” and AIM: “OSU”), an aggressive drilling programme has continued
through the winter months. Results are encouraging with high grade sections.
Understanding of the geological controls continues to improve with the
recognition of at least three phases of mineralisation: 1.) Mo-Cu associated with
a coarse-grained porphyritic monzonitic intrusive and quartz carbonate veins, 2.)
Cu-Au-Mo associated with a medium grained monzodiorite and quartz vein
stockworks and 3.) Cu-Au-Mo associated with a diorite intrusive and
disseminated bornite and chalcopyrite.
In addition to the existing Sankarani joint venture in Mali, Gold Fields and
Glencar Mining plc (AIM: “GEX”) signed a Letter of Intent in late March 2009
where Gold Fields can earn up to 65 per cent in Glencar’s Komana project which
has a published resource of 1.25Moz. Gold Fields will also make an equity
investment in Glencar and will hold about 15 per cent of the company’s equity.
Drilling will commence as soon as possible.
At the Chucapaca project in southern Peru, Gold Fields and Compania de Minas
Buenaventura (NYSE “BVN”) are preparing to resume an aggressive resource
delineation drilling programme on the Canahuire discovery where recent drilling
by Buenaventura has intersected significant gold with locally important copper
grades associated with the margins of a breccia-hosted deposit. Gold Fields will
fund about US$6 million as part of its back-in right to earn 51 per cent in the
project.
Greenfields Exploration
At the 51 per cent owned Sankarani joint venture in Mali with Glencar Mining plc
(AIM: “GEX”), Gold Fields continues to define and drill high priority targets at the
Finguana, Sanioumale, Bada, and Fie River tenement blocks. At Bada, bed rock
sampling delineated a three kilometre long gold in soil anomaly that is ready for
initial drilling. The anomaly coincides with NE-SW shear zone mapped out from
the magnetic image. At Bokoro, soil sampling has outlined three gold in soil
anomalies coinciding with the NE continuation of the mineralised shear zone
intersected at Bokoro Main.
At the Clancy joint venture in New South Wales, Australia Gold Fields is earning
into an 80 per cent interest in four project areas from Clancy Exploration Ltd
(ASX: ”CLY”), Clancy was formally notified that Gold Fields will assume
management and operatorship of the four joint venture projects as of 1 April
2009. Aircore drilling, detailed gravity and ground magnetics surveys were
completed this quarter. Assay and visual results from the first eight aircore holes
at the Myall project area are encouraging and delineate a significant zone of
>1,000ppm Cu in basement.
At the Jinshu project, part of the Sino Gold Alliance with Sino Gold Mining Ltd
(ASX: SGX” and HKSE: “1862”), in southwestern China, the alliance has elected
to increase its equity from 42 per cent to a maximum of 98 per cent by funding
further exploration and making cash payments following encouraging results
reported from the drilling programme last quarter.
At the Batangas joint venture in the Philippines, Gold Fields and Mindoro
Resources Ltd. (TSX.V: “MIO”) are finalising an agreement which will allow Gold
Fields to earn up to a 75 per cent interest in a large Cu-Au project on southern
Luzon. Community relations work is underway and field programmes will
commence early in Q4 F2009.
At the SBX joint venture in Chile, Gold Fields can earn up to 90 per cent in a joint
venture with SBX Asesorias e Inversiones and 100 per cent under an option
agreement with Aguas Heladas, both private companies. During this quarter,
Gold Fields completed geophysical surveys, bull-dozer trenching and
commenced an RC drilling programme on the Pircas and Piedra Parada targets.
At the Toodoggone joint venture in British Colombia, Canada, Gold Fields and
Cascadero Copper Corp. (TSX.V: “CCD”) signed an agreement in March which
allows Gold Fields to earn up to a 75 per cent interest in Cascadero’s
Toodoggone Cu-Au project. An airborne survey commenced in April 2009 with
ground follow-up geophysics and drilling scheduled to start in May-June
depending on snow cover.
(AIM: “GEX”), Gold Fields continues to define and drill high priority targets at the
Finguana, Sanioumale, Bada, and Fie River tenement blocks. At Bada, bed rock
sampling delineated a three kilometre long gold in soil anomaly that is ready for
initial drilling. The anomaly coincides with NE-SW shear zone mapped out from
the magnetic image. At Bokoro, soil sampling has outlined three gold in soil
anomalies coinciding with the NE continuation of the mineralised shear zone
intersected at Bokoro Main.
At the Clancy joint venture in New South Wales, Australia Gold Fields is earning
into an 80 per cent interest in four project areas from Clancy Exploration Ltd
(ASX: ”CLY”), Clancy was formally notified that Gold Fields will assume
management and operatorship of the four joint venture projects as of 1 April
2009. Aircore drilling, detailed gravity and ground magnetics surveys were
completed this quarter. Assay and visual results from the first eight aircore holes
at the Myall project area are encouraging and delineate a significant zone of
>1,000ppm Cu in basement.
At the Jinshu project, part of the Sino Gold Alliance with Sino Gold Mining Ltd
(ASX: SGX” and HKSE: “1862”), in southwestern China, the alliance has elected
to increase its equity from 42 per cent to a maximum of 98 per cent by funding
further exploration and making cash payments following encouraging results
reported from the drilling programme last quarter.
At the Batangas joint venture in the Philippines, Gold Fields and Mindoro
Resources Ltd. (TSX.V: “MIO”) are finalising an agreement which will allow Gold
Fields to earn up to a 75 per cent interest in a large Cu-Au project on southern
Luzon. Community relations work is underway and field programmes will
commence early in Q4 F2009.
At the SBX joint venture in Chile, Gold Fields can earn up to 90 per cent in a joint
venture with SBX Asesorias e Inversiones and 100 per cent under an option
agreement with Aguas Heladas, both private companies. During this quarter,
Gold Fields completed geophysical surveys, bull-dozer trenching and
commenced an RC drilling programme on the Pircas and Piedra Parada targets.
At the Toodoggone joint venture in British Colombia, Canada, Gold Fields and
Cascadero Copper Corp. (TSX.V: “CCD”) signed an agreement in March which
allows Gold Fields to earn up to a 75 per cent interest in Cascadero’s
Toodoggone Cu-Au project. An airborne survey commenced in April 2009 with
ground follow-up geophysics and drilling scheduled to start in May-June
depending on snow cover.
Near Mine Exploration
At St Ives in Western Australia, drilling in the Athena area continues to deliver
exceptional gold grades, including 3.5 metres at 60.9 grams per ton and 3.1
metres at 33.4 grams per ton. At the Hamlet target, RC drilling has returned an
exceptional gold grades, including 3.5 metres at 60.9 grams per ton and 3.1
metres at 33.4 grams per ton. At the Hamlet target, RC drilling has returned an
GOLD FIELDS RESULTS Q3F2009 I 10
intercept of 8 metres at 7.5 grams per ton from 103 metres. Initial resources for
both of these projects will be included in the next resource statement.
At Agnew in Western Australia, surface drilling in the Redeemer – Waroonga
gap has intersected the favorable MCC stratigraphic package including narrow
zones of mineralisation. One drill hole intersected six metres (true thickness) of
arsenopyrite – chalcopyrite and pyrrhotite alteration and associated veining at a
depth of 230 metres. Infill underground drilling continued at Waroonga and Kim
South with positive results.
At Damang in Ghana, extensional drilling below the Juno pit and southwards for
700 metres on the Tamang prospect intersected hydrothermal style veining in
dolerite intrusives and Tarkwaian rocks. These intersections were all within 150
metres of surface and outside any resource shells. Similarly, favourable
indications continue to come out of the Amoanda – Tomento East gap and
veining has been located within 30 metres of surface 200 metres south of
Tomento East.
At Cerro Corona in Peru, the Consolidada de Hualgayoc 50:50 joint venture with
Buenaventura (NYSE: “BVN”) is in the final stage of the approval process with
the communities for drilling access to the Titan-Arabe Copper-gold target.
Drilling is planned to commence in the June quarter subject to final approval
being obtained.
both of these projects will be included in the next resource statement.
At Agnew in Western Australia, surface drilling in the Redeemer – Waroonga
gap has intersected the favorable MCC stratigraphic package including narrow
zones of mineralisation. One drill hole intersected six metres (true thickness) of
arsenopyrite – chalcopyrite and pyrrhotite alteration and associated veining at a
depth of 230 metres. Infill underground drilling continued at Waroonga and Kim
South with positive results.
At Damang in Ghana, extensional drilling below the Juno pit and southwards for
700 metres on the Tamang prospect intersected hydrothermal style veining in
dolerite intrusives and Tarkwaian rocks. These intersections were all within 150
metres of surface and outside any resource shells. Similarly, favourable
indications continue to come out of the Amoanda – Tomento East gap and
veining has been located within 30 metres of surface 200 metres south of
Tomento East.
At Cerro Corona in Peru, the Consolidada de Hualgayoc 50:50 joint venture with
Buenaventura (NYSE: “BVN”) is in the final stage of the approval process with
the communities for drilling access to the Titan-Arabe Copper-gold target.
Drilling is planned to commence in the June quarter subject to final approval
being obtained.
Development Projects
At the Arctic Platinum project in Finland, positive results from preliminary
metallurgical tests, using the Platsol (TM) process, has justified additional
engineering work to fine-tune the cost estimates for using this process on a
commercial scale. Platsol (TM) is a hydrometallurgical process which uses
pressure oxidation to take the base metals and precious metals in Arctic Platinum
concentrate into solution. The metals are then recovered from the solution.
metallurgical tests, using the Platsol (TM) process, has justified additional
engineering work to fine-tune the cost estimates for using this process on a
commercial scale. Platsol (TM) is a hydrometallurgical process which uses
pressure oxidation to take the base metals and precious metals in Arctic Platinum
concentrate into solution. The metals are then recovered from the solution.
Corporate
Appointments to the Gold Fields Board of Directors
On 11 March 2009 Gold Fields announced the appointment of Ms. Cheryl
Carolus and Mr. Roberto Dañino to the Board of Directors, effective from 10
March 2009.
Ms. Carolus, a South African, was born in Silvertown in Cape Town. After a
career in politics she became South Africa's High Commissioner to the United
Kingdom in London in 1998. Between 2001 and 2004, she was the Chief
Executive Officer of South African Tourism. She served as chairperson of the
South African National Parks Board for six years. She is also executive
chairperson of Peotona Holdings, an investment company that deals with
business development.
Mr. Roberto Dañino is a Peruvian lawyer who has practiced for over 30 years as
a Partner of leading law firms in Lima and Washington DC. He has extensive
experience throughout Latin America, as well as in the USA and the UK. He is a
graduate of Harvard Law School and the Pontificia Universidad Catolica del Peru.
Mr. Dañino sits on various corporate and non-profit boards, both in Peru and the
USA, including Gold Fields La Cima in Peru. Mr. Dañino has also served as
Prime Minister of Peru and Ambassador to United States. He has been Senior
Vice President and General Counsel of the World Bank, as well as Secretary
General of the International Center for Settlement of Investment Disputes
(ICSID). He was also the founding General Counsel of the Inter-American
Investment Corporation (IIC) in Washington, D.C., the private sector affiliate of
the Inter-American Development Bank.
Carolus and Mr. Roberto Dañino to the Board of Directors, effective from 10
March 2009.
Ms. Carolus, a South African, was born in Silvertown in Cape Town. After a
career in politics she became South Africa's High Commissioner to the United
Kingdom in London in 1998. Between 2001 and 2004, she was the Chief
Executive Officer of South African Tourism. She served as chairperson of the
South African National Parks Board for six years. She is also executive
chairperson of Peotona Holdings, an investment company that deals with
business development.
Mr. Roberto Dañino is a Peruvian lawyer who has practiced for over 30 years as
a Partner of leading law firms in Lima and Washington DC. He has extensive
experience throughout Latin America, as well as in the USA and the UK. He is a
graduate of Harvard Law School and the Pontificia Universidad Catolica del Peru.
Mr. Dañino sits on various corporate and non-profit boards, both in Peru and the
USA, including Gold Fields La Cima in Peru. Mr. Dañino has also served as
Prime Minister of Peru and Ambassador to United States. He has been Senior
Vice President and General Counsel of the World Bank, as well as Secretary
General of the International Center for Settlement of Investment Disputes
(ICSID). He was also the founding General Counsel of the Inter-American
Investment Corporation (IIC) in Washington, D.C., the private sector affiliate of
the Inter-American Development Bank.
Black Economic Empowerment Transaction
Gold Fields announced on 17 March 2009 that, in terms of the R4.1 billion Black
Economic Empowerment transaction approved by shareholders of Gold Fields on
8 March 2004, Mvelaphanda Resources (Mvela Resources) took receipt, through
its wholly owned subsidiary Mvelaphanda Gold (Proprietary) Limited (“Mvela
Gold”), of its 15 per cent shareholding in GFI Mining South Africa (Proprietary)
Limited (“GFIMSA”), a subsidiary of Gold Fields which owns and operates the
South African gold mining assets of Gold Fields (“the GFIMSA shares”).
Immediately upon receipt of the GFIMSA shares, Mvela Gold exercised its right
to use the GFIMSA shares to subscribe for 50 million new ordinary shares in
Gold Fields. Gold Fields issued 50 million new ordinary Gold Fields shares, to
Mvela Gold for the GFIMSA shares. This brought the total number of Gold Fields
shares to 703,839,976. Pursuant to the above transactions, Mvela Gold owned
approximately 7 per cent of the listed shares of Gold Fields, and Gold Fields
again owns 100 per cent of GFIMSA.
Economic Empowerment transaction approved by shareholders of Gold Fields on
8 March 2004, Mvelaphanda Resources (Mvela Resources) took receipt, through
its wholly owned subsidiary Mvelaphanda Gold (Proprietary) Limited (“Mvela
Gold”), of its 15 per cent shareholding in GFI Mining South Africa (Proprietary)
Limited (“GFIMSA”), a subsidiary of Gold Fields which owns and operates the
South African gold mining assets of Gold Fields (“the GFIMSA shares”).
Immediately upon receipt of the GFIMSA shares, Mvela Gold exercised its right
to use the GFIMSA shares to subscribe for 50 million new ordinary shares in
Gold Fields. Gold Fields issued 50 million new ordinary Gold Fields shares, to
Mvela Gold for the GFIMSA shares. This brought the total number of Gold Fields
shares to 703,839,976. Pursuant to the above transactions, Mvela Gold owned
approximately 7 per cent of the listed shares of Gold Fields, and Gold Fields
again owns 100 per cent of GFIMSA.
Standard and Poor’s investment grade credit rating
On 19 March 2009 Standard and Poor’s Ratings Services (“S&P”) assigned Gold
Fields with a ‘BBB-/A-3’ long-term and short-term global corporate credit rating
and ‘zaA/zaA-1’ long-term and short-term South Africa national scale corporate
credit rating. The long-term ratings reflect Gold Fields’ satisfactory business risk
and intermediate financial risk profiles while the short-term ratings reflect Gold
Fields’ adequate liquidity.
Fields with a ‘BBB-/A-3’ long-term and short-term global corporate credit rating
and ‘zaA/zaA-1’ long-term and short-term South Africa national scale corporate
credit rating. The long-term ratings reflect Gold Fields’ satisfactory business risk
and intermediate financial risk profiles while the short-term ratings reflect Gold
Fields’ adequate liquidity.
The satisfactory business risk profile reflects Gold Fields’ market position as the
world’s fourth largest gold producer, an industry-leading long reserve life of over
20 years, healthy profitability underpinned by persistently strong gold prices. The
company’s leverage and financial policy is considered to be moderate. The
stable outlook reflects the expectation that Gold Fields will continue to report
healthy cash flow generation, supported by ongoing strong gold prices and a
weak exchange rate.
world’s fourth largest gold producer, an industry-leading long reserve life of over
20 years, healthy profitability underpinned by persistently strong gold prices. The
company’s leverage and financial policy is considered to be moderate. The
stable outlook reflects the expectation that Gold Fields will continue to report
healthy cash flow generation, supported by ongoing strong gold prices and a
weak exchange rate.
Executive Team
Gold Fields announced on 24 March 2009 that it intended to reorganise and
further strengthen its executive team. Nick Holland, Chief Executive Officer said:
“Given Gold Fields’ international growth and regionalisation strategy, our
expanding footprint around the globe has required a strengthening and
reorganisation of the Group’s executive team”. The international portfolio, which
is currently headed up by Glenn Baldwin, will be split into three separate
portfolios, each headed up by an executive who will be a member of the Group
Executive Committee and report to the Chief Executive Officer.
The Australasia Region will be headed up by Glenn Baldwin as Executive Vice
further strengthen its executive team. Nick Holland, Chief Executive Officer said:
“Given Gold Fields’ international growth and regionalisation strategy, our
expanding footprint around the globe has required a strengthening and
reorganisation of the Group’s executive team”. The international portfolio, which
is currently headed up by Glenn Baldwin, will be split into three separate
portfolios, each headed up by an executive who will be a member of the Group
Executive Committee and report to the Chief Executive Officer.
The Australasia Region will be headed up by Glenn Baldwin as Executive Vice
President and Head of the Australasia Region. Located in Perth, Glenn will
take responsibility for the two existing mines in Australia, St Ives and Agnew,
and will work with the business development and exploration executives to try
and grow production in Australasia to one million ounces per annum over the
next three to five years.
take responsibility for the two existing mines in Australia, St Ives and Agnew,
and will work with the business development and exploration executives to try
and grow production in Australasia to one million ounces per annum over the
next three to five years.
A new position will be created for an Executive Vice President and Head of the
West Africa and South America Regions. The incumbent will take
responsibility for the Tarkwa and Damang mines in Ghana, West Africa, as well
as the Cerro Corona mine in Peru, South America, and will work with the
business development and exploration executives to try and grow production in
these two regions to a million ounces per annum each.
responsibility for the Tarkwa and Damang mines in Ghana, West Africa, as well
as the Cerro Corona mine in Peru, South America, and will work with the
business development and exploration executives to try and grow production in
these two regions to a million ounces per annum each.
A new position will be created for an Executive Vice President and Head of
International Projects. The incumbent will be responsible for the overall
coordination and control of all international capital projects as well as the
international technical Group.
coordination and control of all international capital projects as well as the
international technical Group.
In the South Africa Region the South Deep project is gaining momentum while
the evaluation of the Uranium project, or the “5th mine” in the South African
portfolio, is progressing rapidly, with an investment decision expected early in
2010. In order to strengthen the South African regional team, a new position will
be created for a Vice President – Capital Projects (South Africa), who will take
responsibility for capital projects in South Africa including South Deep, as well as
the technology drive in the South Africa Region. The incumbent will report to
Vishnu Pillay, Executive Vice President and Head of South Africa Region.
the evaluation of the Uranium project, or the “5th mine” in the South African
portfolio, is progressing rapidly, with an investment decision expected early in
2010. In order to strengthen the South African regional team, a new position will
be created for a Vice President – Capital Projects (South Africa), who will take
responsibility for capital projects in South Africa including South Deep, as well as
the technology drive in the South Africa Region. The incumbent will report to
Vishnu Pillay, Executive Vice President and Head of South Africa Region.
Outlook
In the June quarter attributable gold production is forecast to increase by 3 per
cent from 871,000 ounces to 900,000 ounces, subject to the forward looking
statement. Total cash costs are forecast to increase from US$471 per ounce to
US$510 per ounce mainly due to the 8 per cent stronger rand. The June quarter
forecast is based on an exchange rate of R/US$ 9.00 and US$/A$ 0.72
compared with R/US$ 9.83 and US$/A$ 0.66 achieved in the March quarter.
NCE is forecast at US$730 per ounce compared with US$668 per ounce in the
March quarter, also significantly impacted by the movement in the exchange rate.
cent from 871,000 ounces to 900,000 ounces, subject to the forward looking
statement. Total cash costs are forecast to increase from US$471 per ounce to
US$510 per ounce mainly due to the 8 per cent stronger rand. The June quarter
forecast is based on an exchange rate of R/US$ 9.00 and US$/A$ 0.72
compared with R/US$ 9.83 and US$/A$ 0.66 achieved in the March quarter.
NCE is forecast at US$730 per ounce compared with US$668 per ounce in the
March quarter, also significantly impacted by the movement in the exchange rate.
Basis of accounting
The unaudited results for the quarter have been prepared on the International
Financial Reporting Standards (IFRS) basis. The detailed financial, operational
and development results for the March 2009 quarter are submitted in this report.
These consolidated quarterly statements are prepared in accordance with IAS 34
Interim Financial Reporting. The accounting policies used in the preparation of
this report are consistent with those applied in the previous financial year except
for the adoption of applicable revised and/or new standards issued by the
International Accounting Standards Board.
N.J. Holland
Chief Executive Officer
7 May 2009
Financial Reporting Standards (IFRS) basis. The detailed financial, operational
and development results for the March 2009 quarter are submitted in this report.
These consolidated quarterly statements are prepared in accordance with IAS 34
Interim Financial Reporting. The accounting policies used in the preparation of
this report are consistent with those applied in the previous financial year except
for the adoption of applicable revised and/or new standards issued by the
International Accounting Standards Board.
N.J. Holland
Chief Executive Officer
7 May 2009
11 I GOLD FIELDS RESULTS Q3F2009
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
Quarter
Nine months to
March
2009
December
2008
March
2008
March
2009
March
2008
Revenue
8,509.5
7,074.4
6,109.2
21,307.5
16,557.1
Operating costs, net
4,523.7
4,508.5
3,543.3
13,181.9
10,237.6
- Operating costs
4,566.5
4,542.3
3,502.6
13,342.0
10,135.7
- Gold inventory change
(42.8)
(33.8)
40.7
(160.1)
101.9
Operating profit
3,985.8
2,565.9
2,565.9
8,125.6
6,319.5
Amortisation and depreciation
1,140.9
1,032.8
713.9
3,075.2
2,247.7
Net operating profit
2,844.9
1,533.1
1,852.0
5,050.4
4,071.8
Net interest paid
(163.5)
(164.2)
(96.2)
(439.2)
(298.6)
Share of profit/(loss) of associates after taxation
21.1
(46.6)
7.8
(129.7)
22.9
Gain on foreign exchange
128.7
45.5
38.4
168.1
21.0
(Loss)/gain on financial instruments
(5.1)
(65.9)
262.3
(126.8)
83.6
Share-based payments
(95.2)
(94.3)
(24.6)
(283.4)
(77.9)
Other
(41.4)
(51.5)
(7.7)
(113.9)
24.1
Exploration
(133.8)
(136.1)
(57.5)
(337.6)
(220.8)
Profit before tax and exceptional items
2,555.7
1,020.0
1,974.5
3,787.9
3,626.1
Exceptional (loss)/gain
(203.1)
(5.0)
(41.6)
(93.7)
1,404.3
Profit before taxation
2,352.6
1,015.0
1,932.9
3,694.2
5,030.4
Mining and income taxation
943.3
496.1
566.5
1,696.3
1,274.0
- Normal taxation
536.4
119.5
278.8
792.8
685.7
-
Royalties
97.6
79.0
70.6
243.2
172.0
- Deferred taxation
309.3
297.6
217.1
660.3
416.3
Net profit from continued operations
1,409.3
518.9
1,366.4
1,997.9
3,756.4
Profit from discontinued operations
-
-
-
-
37.0
Profit adjustment on sale of Venezuelan assets
-
-
-
-
74.2
Net profit
1,409.3
518.9
1,366.4
1,997.9
3,867.6
Attributable to:
- Ordinary shareholders
1,306.6
483.1
1,248.0
1,828.9
3,614.6
- Minority shareholders
102.7
35.8
118.4
169.0
253.0
Exceptional items:
(Loss)/profit on sale of investments
(213.6)
1.6
-
(212.9)
1,414.7
Profit/(loss) on sale of assets
11.0
(2.9)
3.2
10.0
34.4
South Deep restructuring costs
(0.5)
(2.9)
-
(22.2)
-
Driefontein 9 shaft closure costs
-
-
(44.8)
-
(44.8)
Insurance claim – South Deep
-
(0.8)
-
131.4
-
Total exceptional items
(203.1)
(5.0)
(41.6)
(93.7)
1,404.3
Taxation
(2.1)
0.8
18.7
(47.4)
(0.8)
Net exceptional items after tax and minorities
(205.2)
(4.2)
(22.9)
(141.1)
1,403.5
Net earnings
1,306.6
483.1
1,248.0
1,828.9
3,614.6
Net earnings per share (cents)
195
74
191
275
554
Diluted earnings per share (cents)
193
69
178
268
517
Headline earnings
1,511.6
484.1
1,245.7
2,034.6
2,111.7
Headline earnings per share (cents)
225
74
191
305
324
Net earnings excluding gains and losses on foreign exchange,
financial instruments, exceptional items, share of profit/(loss) of
associates after taxation and discontinued operations
financial instruments, exceptional items, share of profit/(loss) of
associates after taxation and discontinued operations
1,368.9
542.3
1,000.8
2,031.5
1,996.3
Net earnings per share excluding gains and losses on foreign
exchange, financial instruments, exceptional items, share of
profit/(loss) of associates after taxation and discontinued operations
(cents)
exchange, financial instruments, exceptional items, share of
profit/(loss) of associates after taxation and discontinued operations
(cents)
204
83
153
305
306
Gold sold – managed
kg
29,435
28,291
27,692
84,031
91,846
Gold price received
R/kg
289,095
250,058
220,612
253,567
180,270
Total cash cost
R/kg
150,301
153,893
122,920
152,500
106,902
GOLD FIELDS RESULTS Q3F2009 I 12
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
UNITED STATES DOLLARS
Quarter
Nine months to
March
2009
December
2008
March
2008
March
2009
March
2008
Revenue
868.5
718.1
821.1
2,326.1
2,328.7
Operating costs, net
453.0
450.0
473.9
1,439.1
1,439.9
- Operating costs
457.1
452.6
468.4
1,456.6
1,425.6
- Gold inventory change
(4.1)
(2.6)
5.5
(17.5)
14.3
Operating profit
415.5
268.1
347.2
887.0
888.8
Amortisation and depreciation
115.4
103.8
94.8
335.7
316.1
Net operating profit
300.1
164.3
252.4
551.3
572.7
Net interest paid
(16.5)
(17.0)
(12.8)
(47.9)
(42.0)
Share of profit/(loss) of associates after taxation
3.0
(3.7)
1.0
(14.2)
3.2
Gain on foreign exchange
13.9
5.3
5.5
18.4
3.0
Gain/(loss) on financial instruments
0.1
(6.7)
37.6
(13.8)
11.8
Share-based payments
(9.5)
(9.3)
(3.3)
(30.9)
(11.0)
Other
(4.1)
(5.6)
(1.2)
(12.4)
3.4
Exploration
(13.7)
(14.5)
(7.5)
(36.9)
(31.1)
Profit before tax and exceptional items
273.3
112.8
271.7
413.6
510.0
Exceptional (loss)/gain
(22.7)
(2.3)
(11.1)
(10.2)
197.5
Profit before taxation
250.6
110.5
260.6
403.4
707.5
Mining and income taxation
99.4
52.6
77.2
185.2
179.2
- Normal taxation
57.4
11.5
37.8
86.6
96.4
-
Royalties
9.9
8.0
9.5
26.5
24.2
- Deferred taxation
32.1
33.1
29.9
72.1
58.6
Net profit from continued operations
151.2
57.9
183.4
218.2
528.3
Profit from discontinued operations
-
-
(0.1)
-
5.2
Profit adjustment on sale of Venezuelan assets
-
-
(0.3)
-
10.4
Net profit
151.2
57.9
183.0
218.2
543.9
Attributable to:
- Ordinary shareholders
140.4
54.2
166.8
199.8
508.3
- Minority shareholders
10.8
3.7
16.2
18.4
35.6
Exceptional items:
(Loss)/profit on sale of investments
(23.3)
0.2
(5.1)
(23.2)
199.0
Profit/(loss) on sale of assets
1.2
(0.3)
0.3
1.1
4.8
South Deep restructuring costs
0.1
(0.1)
-
(2.4)
-
Driefontein 9 shaft closure costs
-
-
(6.3)
-
(6.3)
Insurance claim – South Deep
(0.7)
(2.1) -
14.3
-
Total exceptional items
(22.7)
(2.3)
(11.1)
(10.2)
197.5
Taxation
-
0.8
2.7
(5.2)
(0.1)
Net exceptional items after tax and minorities
(22.7)
(1.5)
(8.4)
(15.4)
197.4
Net earnings
140.4
54.2
166.8
199.8
508.3
Net earnings per share (cents)
21
8
26
30
78
Diluted earnings per share (cents)
21
7
24
29
73
Headline earnings
162.5
54.6
175.5
222.1
300.5
Headline earnings per share (cents)
24
8
27
33
46
Net earnings excluding gains and losses on foreign exchange,
financial instruments, exceptional items, share of profit/(loss) of
associates after taxation and discontinued operations
financial instruments, exceptional items, share of profit/(loss) of
associates after taxation and discontinued operations
146.3
59.9
137.2
221.8
280.8
Net earnings per share excluding gains and losses on foreign
exchange, financial instruments, exceptional items, share of
profit/(loss) of associates after taxation and discontinued operations
(cents)
exchange, financial instruments, exceptional items, share of
profit/(loss) of associates after taxation and discontinued operations
(cents)
21
10
21
33
43
South African rand/United States dollar conversion rate
9.93
9.82
7.45
9.16
7.11
South African rand/Australian dollar conversion rate
6.59
6.70
6.73
6.75
6.26
Gold sold – managed
ozs (000)
946
910
890
2,702
2,953
Gold price received
$/oz
906
792
921
861
789
Total cash cost
$/oz
471
487
513
518
468
13 I GOLD FIELDS RESULTS Q3F2009
Balance sheet
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
UNITED STATES DOLLARS
March
2009
June
2008
March
2009
June
2008
Property, plant and equipment
50,003.8
45,533.3
5,230.5
5,691.7
Goodwill
4,458.9
4,458.9
466.4
557.4
Non-current assets
806.5
746.7
84.4
93.3
Investments
5,107.2
5,704.2
534.2
713.0
Current assets
9,128.8
6,450.5
954.9
806.3
- Other current assets
6,591.9
4,443.2
689.5
555.4
- Cash and deposits
2,536.9
2,007.3
265.4
250.9
Total assets
69,505.2
62,893.6
7,270.4
7,861.7
Shareholders’ equity
45,730.3
42,561.2
4,783.5
5,320.1
Deferred taxation
6,217.6
5,421.9
650.4
677.7
Long-term loans
9,407.1
6,513.9
984.0
814.2
Environmental rehabilitation provisions
2,149.7
2,015.5
224.9
251.9
Post-retirement health care provisions
20.7
21.0
2.2
2.6
Current liabilities
5,979.8
6,360.1
625.4
795.2
- Other current liabilities
5,102.2
5,875.9
533.6
734.7
- Current portion of long-term loans
877.6
484.2
91.8
60.5
Total equity and liabilities
69,505.2
62,893.6
7,270.4
7,861.7
South African rand/US dollar conversion rate
9.56
8.00
South African rand/Australian dollar conversion rate
6.67
7.66
Condensed changes in equity
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
UNITED STATES DOLLARS
March
2009
March
2008
March
2009
March
2008
Balance at the beginning of the financial year
42,561.2
37,106.3
5,320.1
5,189.7
Issue of share capital
25.5
0.4
2.8
0.1
Increase in share premium
41.6
59.8
4.5
8.4
Marked to market valuation of listed investments
(720.0)
729.3
(78.6)
102.6
Dividends paid
(980.9)
(619.9)
(121.2)
(87.2)
Increase in share-based payment reserve
283.4
77.9
30.9
11.0
Profit attributable to ordinary shareholders
1,828.9
3,614.6
199.8
508.3
Profit attributable to minority shareholders
169.0
253.0
18.4
35.6
Increase/(decrease) in minority interest
790.5
(441.2)
101.3
(62.1)
Loss on transacting with minorities
-
(74.7)
-
(10.5)
Currency translation adjustment and other
1,635.9
1,715.4
(704.8)
(392.7)
Reserves released on sale of Venezuelan assets
-
(454.1)
-
(63.9)
Share of equity investee’s other equity movements
95.2
-
10.3
-
Balance as at the end of March
45,730.3
41,966.8
4,783.5
5,239.3
Reconciliation of headline earnings with net earnings
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
UNITED STATES DOLLARS
March
2009
December
2008
March
2008
March
2009
December
2008
March
2008
Net earnings
1,306.6
483.1 1,248.0
140.4
54.2
166.8
(Profit)/loss on sale of investments
213.6
(1.6) -
23.3
(0.2)
-
Loss/(profit) on sale of assets
(11.0)
2.9 (3.2)
(1.2)
0.3
(0.3)
Taxation effect on sale of assets
2.4
(0.3) 0.9
0.3
-
0.1
Impairment of assets/other
-
- -
-
0.3
-
Other exceptional items
-
- -
(0.3)
-
8.9
Headline earnings
1,511.6
484.1 1,245.7
162.5
54.6
175.5
Headline earnings per share – cents
225
74 191
24
8
27
Based on headline earnings as given above divided by
669,602,482 for March 2009 (December 2008 – 653,341,082
and March 2008 – 652,691,549) being the weighted average
number of ordinary shares in issue.
669,602,482 for March 2009 (December 2008 – 653,341,082
and March 2008 – 652,691,549) being the weighted average
number of ordinary shares in issue.
GOLD FIELDS RESULTS Q3F2009 I 14
Cash flow statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
Quarter
Nine months to
March
2009
December
2008
March
2008
March
2009
March
2008
Cash flows from operating activities
2,947.2
1,787.1
3,038.5 4,702.6
5,171.6
Profit before tax and exceptional items
2,555.7
1,020.0
1,974.5 3,787.9
3,626.1
Exceptional items
(203.1)
(5.0)
(41.6)
(93.7)
1,404.3
Amortisation and depreciation
1,140.9
1,032.8
713.9
3,075.2
2,247.7
Change in working capital
(211.8)
(269.2)
794.2
(1,058.0)
(0.2)
Taxation paid
(445.2)
(132.5)
(238.0)
(1,490.3)
(728.8)
Other non-cash items
110.7
141.0
(164.5)
481.5
(1,503.9)
Discontinued operations
-
-
-
-
126.4
Dividends paid
(196.1)
(0.3)
-
(980.9)
(619.9)
Ordinary shareholders
(196.1)
(0.3)
-
(980.9)
(619.9)
Cash flows from investing activities
(1,449.8)
(2,350.2)
(2,355.3) (5,707.9)
(4,510.3)
Capital expenditure – additions
(1,700.7)
(2,345.2)
(2,085.7) (5,858.7)
(6,489.1)
Capital expenditure – proceeds on disposal
10.2
0.2
3.1
12.6
35.7
Sale of subsidiaries
45.0
-
-
45.0
1,042.1
Purchase of investments
1.9
3.5
(258.1)
(81.4)
(270.1)
Proceeds on the disposal of investments
200.0
-
1.9
200.0
34.4
Environmental and post-retirement health care payments
(6.2)
(8.7)
(16.5)
(25.4)
(27.9)
Discontinued operations
-
-
-
-
1,164.6
Cash flows from financing activities
94.4
(331.4)
(213.7) 2,360.7
(538.0)
Loans received
4,947.4
832.5
1,535.3 9,067.8
3,171.3
Loans repaid
(4,972.8)
(1,173.1)
(1,788.3) (6,838.8)
(3,769.5)
Minority shareholders loans received
64.6
-
-
64.6
-
Shares issued
55.2
9.2
39.3
67.1
60.2
Net cash inflow/(outflow)
1,395.7
(894.8)
469.5
374.5
(496.6)
Translation adjustment
87.6
130.3
154.0
155.1
130.6
Cash at beginning of period
1,053.6
1,818.1
1,320.6 2,007.3
2,310.1
Cash at end of period
2,536.9
1,053.6
1,944.1 2,536.9
1,944.1
UNITED STATES DOLLARS
Quarter
Nine months to
March
2009
December
2008
March
2008
March
2009
March
2008
Cash flows from operating activities
328.1
186.1
407.9
513.5
714.1
Profit before tax and exceptional items
273.3
112.8
271.7
413.6
510.0
Exceptional items
(22.7)
(2.3)
(11.1)
(10.2)
197.5
Amortisation and depreciation
115.4
103.8
94.8
335.7
316.1
Change in working capital
(19.1)
(21.9)
114.6
(115.5)
-
Taxation paid
(29.2)
(18.8)
(43.5) (162.7)
(115.8)
Other non-cash items
10.4
12.5
(18.2)
52.6
(211.5)
Discontinued operations
-
-
(0.4)
-
17.8
Dividends paid
(19.3)
-
-
(121.2)
(88.6)
Ordinary shareholders
(19.3)
-
-
(121.2)
(88.6)
Cash flows from investing activities
(140.2)
(238.5)
(323.6) (625.2)
(634.4)
Capital expenditure – additions
(166.0)
(239.4)
(277.3) (639.6)
(912.7)
Capital expenditure – proceeds on disposal
1.1
-
0.3
1.4
5.0
Sale of subsidiaries
4.9
-
(3.8)
4.9
146.6
Purchase of investments
(1.4)
1.7
(36.3)
(10.9)
(38.0)
Proceeds on the disposal of investments
21.8
-
0.1
21.8
4.8
Environmental and post-retirement health care payments
(0.6)
(0.8)
(2.3)
(2.8)
(3.9)
Discontinued operations
-
-
(4.3)
-
163.8
Cash flows from financing activities
11.5
(39.2)
(28.9)
307.9
(75.7)
Loans received
496.9
82.7
209.9
1,004.4
446.0
Loans repaid
(498.0)
(123.0)
(244.3) (710.5)
(530.2)
Minority shareholders loans received
6.7
-
-
6.7
-
Shares issued
5.9
1.1
5.5
7.3
8.5
Net cash inflow/(outflow)
180.1
(91.6)
55.4
75.0
(84.6)
Translation adjustment
(24.0)
(28.4)
(1.4)
(60.5)
4.2
Cash at beginning of period
109.3
229.3
188.7
250.9
323.1
Cash at end of period
265.4
109.3
242.7
265.4
242.7
15 I GOLD FIELDS RESULTS Q3F2009
Hedging / Derivatives
The Group’s policy is to remain unhedged to the gold price. However, hedges are sometimes undertaken on a project specific basis as follows:
to protect cash flows at times of significant expenditure;
for specific debt servicing requirements; and
to safeguard the viability of higher cost operations.
Gold Fields may from time to time establish currency financial instruments to protect underlying cash flows.
Gold Fields has various currency financial instruments – those remaining are described in the schedule.
to protect cash flows at times of significant expenditure;
for specific debt servicing requirements; and
to safeguard the viability of higher cost operations.
Gold Fields may from time to time establish currency financial instruments to protect underlying cash flows.
Gold Fields has various currency financial instruments – those remaining are described in the schedule.
Position at end of March 2009
Western Areas US Dollars / Rand forward purchases
As a result of the US$551 million drawn down under the original bridge loan facility to settle mainly the close-out of the Western Areas gold derivative
structure on 30 January 2007, US dollar/rand forward cover was purchased during the March 2007 quarter to cover this amount. During financial 2008,
US$233 million of this loan was repaid and the forward cover was reduced to US$318 million to correspond with the loan amount outstanding. At 31
March 2009, the unrealised foreign exchange loss on the revaluation of the US$318 million loan was R720 million. This loss was offset by R720 million
cumulative positive gains on the forward cover purchased at an original rate of R7.3279.
During the March quarter R88 million of forward cover costs were accounted for as part of interest, as this forward cover has been designated as a
hedging instrument.
structure on 30 January 2007, US dollar/rand forward cover was purchased during the March 2007 quarter to cover this amount. During financial 2008,
US$233 million of this loan was repaid and the forward cover was reduced to US$318 million to correspond with the loan amount outstanding. At 31
March 2009, the unrealised foreign exchange loss on the revaluation of the US$318 million loan was R720 million. This loss was offset by R720 million
cumulative positive gains on the forward cover purchased at an original rate of R7.3279.
During the March quarter R88 million of forward cover costs were accounted for as part of interest, as this forward cover has been designated as a
hedging instrument.
South Africa US Dollars / Rand forward sales
In October 2008, US$150 million of expected gold revenue for the December quarter was sold forward on behalf of the South African operations. In
December 2008, the US$150 million was extended to the March quarter at an average forward rate of R10.3818. During the March quarter US$30
million was settled and the gain for the quarter was R12 million of which R7 million was accounted for in the income statement and the balance of R5
million in equity. The outstanding balance of US$120 million was extended into the June quarter at an average forward rate of R10.2595. At the end of
March 2009 the marked to market value of the US$120 million forward cover was positive by R80 million (US$8 million).
Subsequent to the March quarter end the remaining forward cover of US$120 million was partly delivered into and the balance closed out, resulting in a
gain of R51 million which will be accounted for in the income statement in the June quarter.
December 2008, the US$150 million was extended to the March quarter at an average forward rate of R10.3818. During the March quarter US$30
million was settled and the gain for the quarter was R12 million of which R7 million was accounted for in the income statement and the balance of R5
million in equity. The outstanding balance of US$120 million was extended into the June quarter at an average forward rate of R10.2595. At the end of
March 2009 the marked to market value of the US$120 million forward cover was positive by R80 million (US$8 million).
Subsequent to the March quarter end the remaining forward cover of US$120 million was partly delivered into and the balance closed out, resulting in a
gain of R51 million which will be accounted for in the income statement in the June quarter.
Australia US Dollars / Australian Dollars forward sales
In October 2008, US$70 million of expected gold revenue for the December quarter was sold forward on behalf of the Australian operations. In
December 2008, US$56 million was extended to the March quarter at an average forward rate of A$0.6650. During the March quarter an additional
US$8 million of instruments was taken out. The total of US$64 million was extended to the June quarter at an average forward rate of A$0.6445. The
gain for the March quarter was A$1 million of which a loss of A$1million was accounted for in the income statement and a gain of A$2 million in equity.
Subsequent to the March quarter end the forward cover of US$64 million was partly delivered into and the balance closed out, resulting in a gain of A$3
million which will be accounted for in the income statement in the June quarter.
December 2008, US$56 million was extended to the March quarter at an average forward rate of A$0.6650. During the March quarter an additional
US$8 million of instruments was taken out. The total of US$64 million was extended to the June quarter at an average forward rate of A$0.6445. The
gain for the March quarter was A$1 million of which a loss of A$1million was accounted for in the income statement and a gain of A$2 million in equity.
Subsequent to the March quarter end the forward cover of US$64 million was partly delivered into and the balance closed out, resulting in a gain of A$3
million which will be accounted for in the income statement in the June quarter.
Ghana currency forward sales
During financial 2009, a South African rand forward cover was taken out to cover commitments of Gold Fields Ghana Ltd. Outstanding at the end of
March 2009 were forward cover contracts of R4 million, with a final expiry on 31 July 2009.
The marked to market value for the outstanding contracts at the end of the March 2009 quarter was US$18,000.
March 2009 were forward cover contracts of R4 million, with a final expiry on 31 July 2009.
The marked to market value for the outstanding contracts at the end of the March 2009 quarter was US$18,000.
Diesel Hedge
Ghana
The Ghanaian operations purchased four Asian style ICE Gasoil call options with strike prices ranging from US$0.90 per litre to US$1.11 per litre, which
equates to a Brent crude price of between US$92 and US$142 per barrel, with final expiry on 28 February 2010.
The marked to market value for the above call options purchased was positive by US$0.1 million at the end of the March 2009 quarter.
Australia
The Australian operations purchased two Asian style Singapore 0.5 Gasoil call options with strike prices ranging from US$0.9128 per litre to US$1.0950
per litre with a final expiry on 28 February 2010.
The marked to market value for the above call options was negligible at the end of the March 2009 quarter.
The Ghanaian operations purchased four Asian style ICE Gasoil call options with strike prices ranging from US$0.90 per litre to US$1.11 per litre, which
equates to a Brent crude price of between US$92 and US$142 per barrel, with final expiry on 28 February 2010.
The marked to market value for the above call options purchased was positive by US$0.1 million at the end of the March 2009 quarter.
Australia
The Australian operations purchased two Asian style Singapore 0.5 Gasoil call options with strike prices ranging from US$0.9128 per litre to US$1.0950
per litre with a final expiry on 28 February 2010.
The marked to market value for the above call options was negligible at the end of the March 2009 quarter.
Pro-Forma* debt maturity ladder
F2009
F2010
F2011
F2012
F2013 to F2017
Total
Pro-Forma* headroom - Loan facilities, including preference shares and commercial paper
R'million
2,500.0
1,068.0
651.0
-
1,500.0
5,719.0
US$'million
-
39.5
325.3
516.9
99.3
981.0
Pro-Forma* utilisation - Loan facilities, including preference shares and commercial paper
R'million
932.0
1,068.0
651.0
-
-
2,651.0
US$'million
-
39.5
144.3
515.4
99.3
798.5
Dollar debt translated to rand
-
377.6
1,379.5
4,927.2
949.3
7,633.7
Total (R’m)
932.0
1,445.6
2,030.5
4,927.2
949.3
10,284.7
Long-term loans per balance sheet (R’m)
9,407.1
Current portion of long-term loans per balance sheet (R’m)
877.6
Total per balance sheet (R’m)
10,284.7
*Pro-Forma: once re-financing of new facilities is complete.
Exchange rate: US$1 = R9.56 being the closing rate at the end of the March 2009 quarter.
Exchange rate: US$1 = R9.56 being the closing rate at the end of the March 2009 quarter.
GOLD FIELDS RESULTS Q3F2009 I 16
Total cash cost
Gold Industry Standards Basis
Figures are in millions unless otherwise stated
Total Mine
Operations
South African Operations
International Operations
Total
Driefontein
Kloof Beatrix
South
Deep
Total
Ghana Peru
Australia
#
Tarkwa Damang
Cerro
Corona
St Ives
Agnew
Operating costs
(1)
March
2009
4,566.5
2,434.2
867.7
762.9
507.7
295.9
2,132.3
811.2
311.9
258.3
591.4
159.5
Dec
2008
4,542.3
2,429.7
876.8
772.8
503.1
277.0
2,112.6
833.2
339.0
210.7
563.1
166.6
Financial year to date
13,342.0
7,331.6
2,625.1 2,321.1
1,509.4
876.0
6,010.4
2,333.1
925.7
521.7
1,714.7
515.2
Gold-in-process and
March 2009
(44.3)
-
-
-
-
-
(44.3)
(41.9)
1.4
14.1
(25.7)
7.8
inventory change*
Dec 2008
(44.3)
-
-
-
-
-
(44.3)
(53.8)
(24.3)
7.6
26.0
0.2
Financial year to date
(151.9)
-
-
-
-
-
(151.9)
(114.5)
(27.8)
(31.0)
3.3
18.1
Less:
March 2009
39.4
29.4
10.3
10.2
5.5
3.4
10.0
2.0
0.8
4.0
2.7
0.5
Rehabilitation costs
Dec 2008
27.6
18.9
7.0
6.7
3.4
1.8
8.7
2.0
-
3.7
2.1
0.9
Financial year to date
90.1
67.1
24.3
23.7
12.2
6.9
23.0
5.5
0.8
7.7
6.9
2.1
Production taxes
March 2009
5.5
5.5
0.8
2.7
1.0
1.0
-
-
-
-
-
-
Dec
2008
6.2
6.2
1.4
3.2
0.7
0.9
-
-
-
-
-
-
Financial year to date
19.3
19.3
4.3
8.9
3.1
3.0
-
-
-
-
-
-
General and admin
March 2009
181.8
98.7
36.3
29.4
20.5
12.5
83.1
40.4
7.8
13.7
15.6
5.6
Dec
2008
176.8
91.6
33.8
27.0
19.1
11.7
85.2
40.4
6.6
12.8
15.7
9.7
Financial year to date
521.6
288.8
107.1
86.1
58.4
37.2
232.8
117.5
19.5
26.5
47.7
21.6
Exploration costs
March 2009
(32.5)
-
-
-
-
-
(32.5)
-
(16.7)
-
(13.3)
(2.5)
Dec 2008
18.8
-
-
-
-
-
18.8
-
12.1
-
5.5
1.2
Financial year to date
-
-
-
-
-
-
-
-
-
-
-
-
Cash operating costs
March 2009
4,328.0
2,300.6
820.3
720.6
480.7
279.0
2,027.4
726.9
321.4
254.7
560.7
163.7
Dec
2008
4,268.6
2,313.0
834.6
735.9
479.9
262.6
1,955.6
737.0
296.0
201.8
565.8
155.0
Financial year to date
12,559.1
6,956.4
2,489.4 2,202.4
1,435.7
828.9
5,602.7
2,095.6
877.6
456.5
1,663.4
509.6
Plus:
March 2009
5.5
5.5
0.8
2.7
1.0
1.0
-
-
-
-
-
-
Production taxes
Dec 2008
6.2
6.2
1.4
3.2
0.7
0.9
-
-
-
-
-
-
Financial year to date
19.3
19.3
4.3
8.9
3.1
3.0
-
-
-
-
-
-
Royalties
March 2009
90.6
-
-
-
-
-
90.6
33.7
14.0
6.8
25.0
11.1
Dec
2008
79.0
-
-
-
-
-
79.0
33.7
11.9
2.4
22.0
9.0
Financial year to date
236.3
-
-
-
-
-
236.3
99.0
34.8
9.2
64.5
28.8
TOTAL CASH COST
(2)
March 2009
4,424.1
2,306.1
821.1
723.3
481.7
280.0
2,118.0
760.6
335.4
261.5
585.7
174.8
Dec
2008
4,353.8
2,319.2
836.0
739.1
480.6
263.5
2,034.6
770.7
307.9
204.2
587.8
164.0
Financial year to date
12,814.7
6,975.7
2,493.7 2,211.3
1,438.8
831.9
5,839.0
2,194.6
912.4
465.7
1,727.9
538.4
Plus:
March 2009
1,105.0
520.8
167.4
180.4
99.6
73.4
584.2
158.1
48.6
140.6
236.9
Amortisation*
Dec 2008
1,005.9
480.1
143.4
161.8
111.9
63.0
525.8
135.2
43.5
94.6
252.5
Financial year to date
2,943.7
1,463.3
450.4
517.0
310.4
185.5
1,480.4
408.2
117.5
235.2
719.5
Rehabilitation
March 2009
39.4
29.4
10.3
10.2
5.5
3.4
10.0
2.0
0.8
4.0
3.2
Dec
2008
27.6
18.9
7.0
6.7
3.4
1.8
8.7
2.0 -
3.7
3.0
Financial year to date
90.1
67.1
24.3
23.7
12.2
6.9
23.0
5.5
0.8
7.7
9.0
TOTAL PRODUCTION COST
(3)
March 2009
5,568.5
2,856.3
998.8
913.9
586.8
356.8
2,712.2
920.7
384.8
406.1
1,000.6
Dec
2008
5,387.3
2,818.2
986.4
907.6
595.9
328.3
2,569.1
907.9
351.4
302.5
1,007.3
Financial year to date
15,848.5
8,506.1
2,968.4 2,752.0
1,761.4
1,024.3
7,342.4
2,608.3
1,030.7
708.6
2,994.8
Gold sold – thousand ounces March 2009
946.4
517.2
215.2
173.8
80.0
48.2
429.1
152.2
52.5
65.3
109.5
49.5
Dec
2008
909.6
500.6
194.9
151.7
106.7
47.3
409.0
139.3
50.4
65.5
108.7
45.0
Financial year to date
2,701.7
1,509.9
616.8
482.1
288.2
122.8
1,191.8
447.7
147.0
130.8
319.4
146.8
TOTAL CASH COST
March 2009
471
449
384
419
606
585
497
503
643
422
538
355
– US$/oz
Dec 2008
487
472
437
496
459
567
507
563
622
355
551
371
Financial year to date
518
504
441
501
545
739
535
535
678
389
591
400
TOTAL CASH COST
March 2009
150,301
143,340 122,680 133,796 193,532
186,667 158,687 160,701
205,263
134,757
171,911
113,433
– R/kg
Dec 2008
153,893
148,944
137,886 156,689 144,759
179,130
159,953 177,868
196,240 100,245
173,905
117,059
Financial year to date
152,500
148,536
129,989 147,479 160,491
217,775
157,521 157,590
199,563
114,451
173,938
117,889
TOTAL PRODUCTION COST March
2009
593
556
467
530
738
745
636
609
738
626
633
– US$/oz
Dec 2008
603
573
515
609
569
707
640
664
709
526
667
Financial year to date
640
615
525
623
667
910
673
636
765
591
701
DEFINITIONS
Total cash cost and Total production cost are calculated in accordance with the Gold Institute Industry standard.
Total cash cost and Total production cost are calculated in accordance with the Gold Institute Industry standard.
(1)
Operating costs – All gold mining related costs before amortisation/depreciation, changes in gold inventory, taxation and exceptional items.
(2)
Total cash cost – Operating costs less off-mine costs, which include general and administration costs, as detailed in the table above.
(3)
Total production cost – Total cash cost plus amortisation/depreciation and rehabilitation provisions, as detailed in the table above.
* Adjusted for amortisation/depreciation (non-cash item) excluded from gold-in-process change.
# As a significant portion of the acquisition price was allocated to tenements of St Ives and Agnew based on endowment ounces and also as these two Australian operations are entitled to transfer and then off-set tax losses from one company to another, it is not meaningful to split the income statement below operating profit.
# As a significant portion of the acquisition price was allocated to tenements of St Ives and Agnew based on endowment ounces and also as these two Australian operations are entitled to transfer and then off-set tax losses from one company to another, it is not meaningful to split the income statement below operating profit.
Average exchange rates are US$1 = R9.93 and US$1 = R9.82 for the March 2009 and December 2008 quarters respectively.
Notional cash expenditure
##
Total
Mines
South African Operations
International Operations
Total
Driefontein
Kloof Beatrix
South
Deep
Total
Ghana Peru Australia
Tarkwa Damang
Cerro
Corona
St Ives
Agnew
Operating costs – R’m
March 2009
4,566.5
2,434.2
867.7
762.9
507.7
295.9 2,132.3
811.2
311.9
258.3
591.4
159.5
Dec 2008
4,542.3
2,429.7
876.8
772.8
503.1
277.0 2,112.6
833.2
339.0
210.7
563.1
166.6
Financial year to date
13,342.0
7,331.6
2,625.1
2,321.1 1,509.4
876.0 6,010.4
2,333.1
925.7
521.7
1,714.7
515.2
Capital expenditure – R’m
March 2009
1,689.2
889.1
261.6
224.3
138.5
264.7
800.1
364.2
37.3
206.9
114.6
77.1
Dec 2008
2,336.6
906.8
253.7
250.7
146.7
255.7 1,429.8
641.5
34.0
515.0
161.8
77.5
Financial year to date
5,828.2
2,584.0
723.0
713.2
438.7
709.1 3,244.2
1,561.2
101.5
889.6
488.6
203.3
Notional cash expenditure
March 2009
213,403
206,570
168,729
182,612 259,622 373,733 221,715 248,341
213,709
243,433
207,220
153,537
– R/kg
Dec 2008
244,210
214,277
186,459
216,981 195,723 362,135 281,210 340,342
237,731
379,154
214,467
174,233
Financial year to date
227,745
211,136
174,526
202,368 217,301 414,948 248,706 279,642
224,672
335,066
221,794 157,324
Notional cash expenditure
March 2009
668
647
529
572
813
1,171
694
778
669
762
649
481
– US$/oz
Dec 2008
774
679
591
687
620
1,147
891
1,078
753
1,201
679
552
Financial year to date
773
717
593
687
738
1,409
845
950
763
1,138
753
534
## Notional cash expenditure (NCE) per kilogram (ounce) = operating costs plus capital expenditure divided by gold produced.
17 I GOLD FIELDS RESULTS Q3F2009
Operating and financial results
SOUTH AFRICAN RAND
Total Mine
Operations
South African Operations
Total
Driefontein
Kloof
Beatrix
South
Deep
Operating Results
March 2009
13,278
3,197
1,537
689
629
342
Ore milled/treated (000 tons)
Dec 2008
13,350
3,458
1,608
768
798
284
Financial year to date
39,326
10,143
4,681
2,428
2,217
817
Yield (grams per ton)
March 2009
2.2
5.0
4.4
7.8
4.0
4.4
Dec 2008
2.1
4.5
3.8
6.1
4.2
5.2
Financial year to date
2.1
4.6
4.1
6.2
4.0
4.7
Gold produced (kilograms)
March 2009
29,314
16,088
6,693
5,406
2,489
1,500
Dec 2008
28,168
15,571
6,063
4,717
3,320
1,471
Financial year to date
84,174
46,963
19,184
14,994
8,965
3,820
Gold sold (kilograms)
March 2009
29,435
16,088
6,693
5,406
2,489
1,500
Dec 2008
28,291
15,571
6,063
4,717
3,320
1,471
Financial year to date
84,031
46,963
19,184
14,994
8,965
3,820
Gold price received (Rand per kilogram)
March 2009
289,095
289,632
290,976
287,939
289,393
290,133
Dec 2008
250,058
254,550
253,818
254,039
256,596
254,589
Financial year to date
253,567
254,234
254,186
254,395
251,556
260,131
Total cash cost (Rand per kilogram)
March 2009
150,301
143,340
122,680
133,796
193,532
186,667
Dec 2008
153,893
148,944
137,886
156,689
144,759
179,130
Financial year to date
152,500
148,536
129,989
147,479
160,49
1 217,775
Notional cash expenditure (Rand per kilogram)
March 2009
213,403
206,570
168,729
182,612
259,622
373,733
Dec 2008
244,210
214,277
186,459
216,981
195,723
362,135
Financial year to date
227,745
211,136
174,526
202,368
217,301
414,948
Operating costs (Rand per ton)
March 2009
344
761
565
1,107
807
865
Dec 2008
340
703
545
1,006
630
975
Financial year to date
339
723
561
956
681
1,072
Financial Results (Rand million)
Revenue
March 2009
8,509.5
4,659.6
1,947.5
1,556.6
720.3
435.2
Dec 2008
7,074.4
3,963.6
1,538.9
1,198.3
851.9
374.5
Financial year to date
21,307.5 11,939.6 4,876.3
3184.4
2,255.2
993.7
Operating costs, net
March 2009
4,523.7
2,434.2
867.7
762.9
507.7
295.9
Dec 2008
4,508.5
2,429.7
876.8
772.8
503.1
277.0
Financial year to date
13,181.9
7,331.6
2,625.1
2,321.1
1,509.4
876.0
- Operating costs
March 2009
4,566.5
2,434.2
867.7
762.9
507.7
295.9
Dec 2008
4,542.3
2,429.7
876.8
772.8
503.1
277.0
Financial year to date
13,342.0
7,331.6
2,625.1
2,321.1
1,509.4
876.0
- Gold inventory change
March 2009
(42.8)
-
-
-
-
-
Dec 2008
(33.8)
-
-
-
-
-
Financial year to date
(160.1)
-
-
-
-
-
Operating profit
March 2009
3,985.8
2,225.4
1,079.8
793.7
212.6
139.3
Dec 2008
2,565.9
1,533.9
662.1
425.5
348.8
97.5
Financial year to date
8,125.6
4,608.0
2,251.2
1,493.3
745.8
117.7
Amortisation of mining assets
March 2009
1,103.5
520.8
167.4
180.4
99.6
73.4
Dec 2008
995.4
480.1
143.4
161.8
111.9
63.0
Financial year to date
2,963.0
1,463.3
450.4
517.0
310.4
185.5
Net operating profit
March 2009
2,882.3
1,704.6
912.4
613.3
113.0
65.9
Dec 2008
1,570.5
1,053.8
518.7
263.7
236.9
34.5
Financial year to date
5,162.6
3,144.7
1,800.8
976.3
435.4
(67.8)
Other (expenses)/income
March 2009
(268.9)
(131.6)
(49.8)
(50.3)
(6.7)
(24.8)
Dec 2008
(179.5)
(93.3)
(50.1)
(41.7)
(5.5)
4.0
Financial year to date
(580.0)
(304.2)
(129.8)
(115.9)
(22.5)
(36.0)
Profit before taxation
March 2009
2,613.4
1,573.0
862.6
563.0
106.3
41.1
Dec 2008
1,391.0
960.5
468.6
222.0
231.4
38.5
Financial year to date
4,582.6
2,840.5
1,671.0
860.4
412.9
(103.8)
Mining and income taxation
March 2009
954.6
593.7
328.4
206.3
43.3
15.7
Dec 2008
471.4
311.2
160.3
45.9
87.7
17.3
Financial year to date
1,709.2
1,056.0
603.9
284.7
162.4
5.0
- Normal taxation
March 2009
513.3
464.4
282.2
182.1
0.1
-
Dec 2008
55.2
113.5
110.0
3.2
0.3
-
Financial year to date
695.1
646.3
458.6
187.2
0.5
-
- Royalties
March 2009
97.6
-
-
-
-
-
Dec 2008
79.0
-
-
-
-
-
Financial year to date
243.2
-
-
-
-
-
- Deferred taxation
March 2009
343.9
129.3
46.2
24.2
43.2
15.7
Dec 2008
337.2
197.7
50.3
42.7
87.4
17.3
Financial year to date
770.9
409.7
145.3
97.5
161.9
5.0
Profit before exceptional items
March 2009
1,658.8
979.3
534.2
356.7
63.0
25.4
Dec 2008
919.6
649.3
308.3
176.1
143.7
21.2
Financial year to date
2,873.4
1,784.5
1,067.1
575.7
250.5
(108.8)
Exceptional items
March 2009
8.7
8.7
1.2
7.6
0.1
(0.2)
Dec 2008
3.6
4.9
-
-
-
4.9
Financial year to date
127.7
128.8
2.9
7.6
0.3
118.0
Net profit
March 2009
1,667.5
988.0
535.4
364.3
63.1
25.2
Dec 2008
923.2
654.2
308.3
176.1
143.7
26.1
Financial year to date
3,001.1
1,913.3
1,070.0
583.3
250.8
9.2
Net profit excluding gains and losses on
foreign exchange, financial instruments and
exceptional items
foreign exchange, financial instruments and
exceptional items
March 2009
1,658.9
977.4
532.0
357.3
63.0
25.1
Dec 2008
971.8
636.1
308.3
176.1
143.7
8.0
Financial year to date
3,016.9
1,815.5
1,065.6
576.3
250.6
(77.0)
Capital expenditure
March 2009
1,689.2
889.1
261.6
224.3
138.5
264.7
Dec 2008
2,336.6
906.8
253.7
250.7
146.7
255.7
Financial year to date
5,828.2
2,584.0
723.0
713.2
438.7
709.1
Planned for next six months to September 2009
4,130.0
2,300.0
670.0
560.0
330.0
740.0
GOLD FIELDS RESULTS Q3F2009 I 18
Operating and financial results
SOUTH AFRICAN RAND
International Operations
Total
Ghana
Peru
Australia
#
Tarkwa
Damang
Cerro
Corona
St Ives
Agnew
Operating Results
March 2009
10,081
5,216
1,334
1,434
1,820
277
Ore milled/treated (000 tons)
Dec 2008
9,892
5,384
1,216
1,199
1,840
253
Financial year to date
29,183
16,107
3,687
3,074
5,477
838
Yield (grams per ton)
March 2009
1.3
0.9
1.2
1.3
1.9
5.6
Dec 2008
1.3
0.8
1.3
1.6
1.8
5.5
Financial year to date
1.3
0.9
1.2
1.4
1.8
5.4
Gold produced (kilograms)
March 2009
13,226
4,733
1,634
1,911
3,407
1,541
Dec 2008
12,597
4,333
1,569
1,914
3,380
1,401
Financial year to date
37,211
13,926
4,572
4,212
9,934
4,567
Gold sold (kilograms)
March 2009
13,347
4,733
1,634
2,032
3,407
1,541
Dec 2008
12,720
4,333
1,569
2,037
3,380
1,401
Financial year to date
37,068
13,926
4,572
4,069
9,934
4,567
Gold price received (Rand per kilogram)
March 2009
288,447
286,140
285,006
288,140
292,838
289,877
Dec 2008
244,560
259,820
253,219
173,411
256,953
261,171
Financial year to date
252,722
253,677
253,434
230,720
258,164
256,864
Total cash cost (Rand per kilogram)
March 2009
158,687
160,701
205,263
128,691
171,911
113,433
Dec 2008
159,953
177,868
196,240
100,245
173,905
117,059
Financial year to date
157,521
157,590
199,563
114,451
1
73,938
117,889
Notional cash expenditure (Rand per kilogram)
March 2009
221,715
248,341
213,709
243,433
207,220
153,537
Dec 2008
281,210
340,342
237,731
379,154
214,467
174,233
Financial year to date
248,706
279,642
224,672
335,066
221,794
157,324
Operating costs (Rand per ton)
March 2009
212
156
234
180
325
576
Dec 2008
214
155
279
176
306
658
Financial year to date
206
145
251
170
313
615
Financial Results (Rand million)
Revenue
March 2009
3,849.9
1,354.3
465.7
585.5
997.7
446.7
Dec 2008
3,110.8
1,125.8
397.3
353.3
868.5
365.9
Financial year to date
9,367.9
3,532.7
1,158.7
938.8
2,564.6
1,173.1
Operating costs, net
March 2009
2,089.5
760.6
313.4
289.0
556.0
170.5
Dec 2008
2,078.8
774.6
314.7
221.9
600.8
166.8
Financial year to date
5,850.3
2,199.5
898.0
490.8
1,722.2
539.8
- Operating costs
March 2009
2,132.3
811.2
311.9
258.3
591.4
159.5
Dec 2008
2,112.6
833.2
339.0
210.7
563.1
166.6
Financial year to date
6,010.4
2,333.1
925.7
521.7
1,714.7
515.2
- Gold inventory change
March 2009
(42.8)
(50.6)
1.5
30.7
(35.4)
11.0
Dec 2008
(33.8)
(58.6)
(24.3)
11.2
37.7
0.2
Financial year to date
(160.1)
(133.6)
(27.7)
(30.9)
7.5
24.6
Operating profit
March 2009
1,760.4
593.7
152.3
296.5
441.7
276.2
Dec 2008
1,032.0
351.2
82.6
131.4
267.7
199.1
Financial year to date
3,517.6
1,333.2
260.7
448.0
842.4
633.3
Amortisation of mining assets
March 2009
582.7
166.8
48.5
124.0
243.4
Dec 2008
515.3
140.0
43.5
91.0
240.8
Financial year to date
1,499.7
427.3
117.4
246.2
708.8
Net operating profit
March 2009
1,177.7
426.9
103.8
172.5
474.5
Dec 2008
516.7
211.2
39.1
40.4
226.0
Financial year to date
2,017.9
905.9
143.3
201.8
766.9
Other (expenses)/income
March 2009
(137.3)
(15.3)
(31.7)
(76.9)
(13.4)
Dec 2008
(86.2)
(58.8)
(19.3)
(10.8)
2.7
Financial year to date
(275.8)
(110.6)
(64.7)
(100.3)
(0.2)
Profit before taxation
March 2009
1,040.4
411.6
72.1
95.6
461.1
Dec 2008
430.5
152.4
19.8
29.6
228.7
Financial year to date
1,742.1
795.3
78.6
101.5
766.7
Mining and income taxation
March 2009
360.9
130.1
28.6
37.0
165.2
Dec 2008
160.2
54.4
11.6
2.3
91.9
Financial year to date
653.2
269.3
43.4
40.7
299.8
- Normal taxation
March 2009
48.9
-
7.2
41.7
-
Dec 2008
(58.3)
(58.3)
-
-
-
Financial year to date
48.8
-
7.2
41.6
-
- Royalties
March 2009
97.6
40.6
14.0
6.8
36.2
Dec 2008
79.0
33.8
11.9
2.4
30.9
Financial year to date
243.2
106.0
34.8
(9.1)
93.3
- Deferred taxation
March 2009
214.6
89.5
7.4
(11.3)
129.0
Dec 2008
139.5
78.9
(0.3)
(0.1)
61.0
Financial year to date
361.2
163.3
1.4
(10.0)
206.5
Profit before exceptional items
March 2009
679.5
281.5
43.5
58.6
295.9
Dec 2008
270.3
98.0
8.2
27.3
1
36.8
Financial year to date
1,088.9
526.0
35.2
60.8
466.9
Exceptional items
March 2009
-
-
-
-
-
Dec 2008
(1.3)
-
-
-
(1.3)
Financial year to date
(1.1)
-
-
-
(1.1)
Net profit
March 2009
679.5
281.5
43.5
58.6
295.9
Dec 2008
269.0
98.0
8.2
27.3
1
35.5
Financial year to date
1,087.8
526.0
35.2
60.8
465.8
Net profit excluding gains and losses on
foreign exchange, financial instruments and
exceptional items
foreign exchange, financial instruments and
exceptional items
March 2009
681.5
281.5
44.7
58.6
296.7
Dec 2008
335.7
140.7
19.9
27.3
147.8
Financial year to date
1,201.4
590.3
56.4
60.8
493.9
Capital expenditure
March 2009
800.1
364.2
37.3
206.9
114.6
77.1
Dec 2008
1,429.8
641.5
34.0
515.0
161.8
77.5
Financial year to date
3,244.2
1,561.2
101.5
889.6
488.6
203.3
Planned for next six months to September 2009
1,830.0 775.0 100.0
440.0 320.0 195.0
# As a significant portion of the acquisition price was allocated to tenements of St Ives and Agnew based on endowment ounces and also as these two Australian operations are entitled to transfer and then off-set tax losses from one company to another, it is not meaningful to split the income statement below operating profit.
19 I GOLD FIELDS RESULTS Q3F2009
Operating and financial results
UNITED STATES DOLLARS
Total Mine
Operations
South African Operations
Total
Driefontein
Kloof
Beatrix
South
Deep
Operating Results
March 2009
13,278
3,197
1,537
689
629
342
Ore milled/treated (000 tons)
Dec 2008
13,350
3,458
1,608
768
798
284
Financial year to date
39,326
10,143
4,681
2,428
2,217
817
Yield (ounces per ton)
March 2009
0.071
0.162
0.140
0.252
0.127
0.141
Dec 2008
0.068
0.145
0.121
0.197
0.134
0.167
Financial year to date
0.069
0.149
0.132
0.199
0.130
0.150
Gold produced (000 ounces)
March 2009
942.5
517.2
215.2
173.8
80.0
48.2
Dec 2008
905.6
500.6
194.9
151.7
106.7
47.3
Financial year to date
2,706.3
1,509.9
616.8
482.1
288.2
122.8
Gold sold (000 ounces)
March 2009
946.4
517.2
215.2
173.8
80.0
48.2
Dec 2008
909.6
500.6
194.9
151.7
106.7
47.3
Financial year to date
2,701.7
1,509.9
616.8
482.1
288.2
122.8
Gold price received (dollars per ounce)
March 2009
906
907
911
902
906
909
Dec 2008
792
806
804
805
813
806
Financial year to date
861
863
863
864
854
883
Total cash cost (dollars per ounce)
March 2009
471
449
384
419
606
585
Dec 2008
487
472
437
496
459
567
Financial year to date
518
504
441
501
545
739
Notional cash expenditure (dollars per ounce)
March 2009
668
647
529
572
813
1,171
Dec 2008
774
679
591
687
620
1,147
Financial year to date
773
717
593
687
738
1,409
Operating costs (dollars per ton)
March 2009
35
77
57
112
81
87
Dec 2008
35
72
56
102
64
99
Financial year to date
37
79
61
104 74
117
Financial Results ($ million)
Revenue
March 2009
868.5
474.3
198.8
159.2
71.4
44.9
Dec 2008
718.1
400.7
154.0
120.3
86.6
39.8
Financial year to date
2,326.1
1,303.4
532.3
416.4
246.2
108.5
Operating costs, net
March 2009
453.0
242.6
86.4
75.9
50.7
29.6
Dec 2008
450.0
239.0
86.4
76.0
49.7
26.9
Financial year to date
1,439.1
800.4
286.6
253.4
164.8
95.6
- Operating costs
March 2009
457.1
242.6
86.4
75.9
50.7
29.6
Dec 2008
452.6
239.0
86.4
76.0
49.7
26.9
Financial year to date
1,456.6
800.4
286.6
253.4
164.8
95.6
- Gold inventory change
March 2009
(4.1)
-
-
-
-
-
Dec 2008
(2.6)
-
-
-
-
-
Financial year to date
(17.5)
-
-
-
-
-
Operating profit
March 2009
415.5
231.7
112.4
83.3
20.7
15.3
Dec 2008
268.1
161.7
67.6
44.3
36.9
12.9
Financial year to date
887.0
503.1
245.8
163.0
81.4
12.8
Amortisation of mining assets
#
March 2009
111.6
52.4
16.9
18.1
9.9
7.5
Dec 2008
100.1
47.6
14.2
15.8
11.2
6.4
Financial year to date
323.5
159.7
49.2
56.4
33.9
20.3
Net operating profit
March 2009
304.1
179.3
95.4
65.3
10.8
7.8
Dec 2008
168.0
114.1
53.4
28.5
25.7
6.5
Financial year to date
563.6
343.3
196.6
106.6
47.5
(7.4)
Other (expenses)/income
March 2009
(27.9)
(13.6)
(5.1)
(5.2)
(0.6)
(2.7)
Dec 2008
(18.4)
(9.4)
(5.2)
(4.4)
(0.5)
0.7
Financial year to date
(63.3)
(33.2)
(14.2)
(12.7)
(2.5)
(3.9)
Profit before taxation
March 2009
276.2
165.7
90.3
60.1
10.2
5.2
Dec 2008
149.6
104.7
48.2
24.1
25.2
7.2
Financial year to date
500.3
310.1
182.4
93.9
45.1
(11.3)
Mining and income taxation
March 2009
100.6
62.7
34.5
22.2
4.2
1.8
Dec 2008
49.4
33.1
16.5
4.7
9.5
2.4
Financial year to date
186.6
115.3
65.9
31.1
17.7
0.5
- Normal taxation
March 2009
55.3
49.9
30.0
19.9
-
-
Dec 2008
4.3
11.9
11.5
0.3
-
-
Financial year to date
75.9
70.6
50.1
20.4
0.1
-
- Royalties
March 2009
9.9
-
-
-
-
-
Dec 2008
8.0
-
-
-
-
-
Financial year to date
26.5
-
-
-
-
-
- Deferred taxation
March 2009
35.4
12.7
4.6
2.3
4.1
1.8
Dec 2008
37.0
21.3
5.0
4.4
9.5
2.4
Financial year to date
84.2
44.7
15.9
10.6
17.7
0.5
Profit before exceptional items
March 2009
175.6
103.1
55.8
37.9
6.0
3.4
Dec 2008
100.2
71.6
31.7
19.4
15.7
4.8
Financial year to date
313.7
194.7
116.4
62.8
27.3
(11.9)
Exceptional items
March 2009
0.4
0.4
0.1
0.8
-
(0.6)
Dec 2008
(1.4)
(1.2)
-
-
-
(1.2)
Financial year to date
13.9
14.1
0.3
0.8
-
12.9
Net profit
March 2009
176.0
103.4
55.9
38.7
6.0
2.8
Dec 2008
98.9
70.4
31.7
19.4
15.7
3.6
Financial year to date
327.7
208.8
116.7
63.7
27.4
1.0
Net profit excluding gains and losses on
March 2009
174.6
102.7
55.5
38.0
6.0
3.2
foreign exchange, financial instruments
Dec 2008
104.8
69.3
31.7
19.4
15.7
2.6
and exceptional items
Financial year to date
329.4
198.2
116.3
62.9
27.4
(8.4)
Capital expenditure
March 2009
164.8
89.1
26.4
22.2
13.7
26.8
Dec 2008
238.5
91.2
25.7
24.9
14.4
26.2
Financial year to date
636.3
282.1
78.9
77.9
47.9
77.4
Planned for next six months to September 2009
459.0
255.6
74.4
62.2
36.7
82.3
Average exchange rates were US$1 = R9.93 and US$1 = R9.82 for the March 2009 and December 2008 quarters respectively. The Australian dollar exchange rates were A$1 = R6.59 and A$1 = R6.70 for the March 2009 and December 2008 quarters respectively.
GOLD
FIELDS RESULTS Q3F2009 I 20
Operating and financial results
UNITED STATES DOLLARS
International Operations
Australian Dollars
Total
Ghana
Peru
Australia
#
Australia
#
Tarkwa
Damang
Cerro
Corona
St Ives
Agnew St
Ives
Agnew
Operating Results
March 2009
10,081
5,216
1,334
1,434
1,820
277
1,820
277
Ore milled/treated (000 tons)
Dec 2008
9,892
5,384
1,216
1,199
1,840
253
1,840
253
Financial year to date
29,183
16,107
3,687
3,074
5,477
838
5,477
838
Yield (ounces per ton)
March 2009
0.042
0.029
0.039
0.043
0.060
0.179
0.060
0.179
Dec 2008
0.041
0.026
0.041
0.051
0.059
0.178
0.059
0.178
Financial year to date
0.041
0.028
0.040
0.044
0.058
0.175
0.058
0.175
Gold produced(000 ounces)
March 2009
425.2
152.2
52.5
61.4
109.5
49.5
109.5
49.5
Dec 2008
405.0
139.3
50.4
61.5
108.7
45.0
108.7
45.0
Financial year to date
1,196.4
447.7
147.0
135.4
319.4
146.8
319.4
146.8
Gold sold (000 ounces)
March 2009
429.1
152.2
52.5
65.3
109.5
49.5
109.5
49.5
Dec 2008
409.0
139.3
50.4
65.5
108.7
45.0
108.7
45.0
Financial year to date
1,191.8
447.7
147.0
130.8
319.4
146.8
319.4
146.8
Gold price received
March 2009
903
896
893
903
917
908
1,382
1,368
(dollars per ounce)
Dec 2008
775
823
802
614
814
827
1,193
1,212
Financial year to date
858
861
861
783
877
872
1,190
1,184
Total cash cost
March 2009
497
503
643
422
538
355
811
535
(dollars per ounce)
Dec 2008
507
563
622
355
551
371
807
543
Financial year to date
535
535
678
389
591
400
801
543
Notional cash expenditure
March 2009
694
778
669
762
649
481
978
725
(dollars per ounce)
Dec 2008
891
1,078
753
1,201
679
552
996
809
Financial year to date
845
950
763
1,138
753
534
1,022
725
Operating costs
March 2009
21
16
24
18
33
58
49
87
(dollars per ton)
Dec 2008
22
16
28
18
31
67
46
98
Financial year to date
22
16
27
19
34
67
46
91
Financial Results ($ million)
Revenue
March 2009
394.3
137.6
47.6
62.3
101.5
45.3
150.2
67.3
Dec 2008
317.5
112.1
40.7
40.2
88.2
36.2
129.5
54.8
Financial year to date
1,022.7
385.7
126.5
102.5
280.0
128.1
379.9
173.8
Operating costs, net
March 2009
210.3
76.2
31.5
30.6
55.2
16.9
84.2
25.8
Dec 2008
211.0
78.1
31.7
25.6
59.8
15.9
89.9
25.1
Financial year to date
638.7
240.1
98.0
53.6
188.0
58.9
255.1
80.0
- Operating costs
March 2009
214.4
81.3
31.2
26.9
59.2
15.7
89.4
24.2
Dec 2008
213.6
84.4
34.4
23.2
55.6
16.1
84.3
25.0
Financial year to date
656.2
254.7
101.1
57.0
187.2
56.2
254.0
76.3
- Gold inventory change
March 2009
(4.1)
(5.1)
0.3
3.6
(4.1)
1.2
(5.1)
1.6
Dec 2008
(2.6)
(6.3)
(2.7)
2.4
4.2
(0.2)
5.5
0.1
Financial year to date
(17.5)
(14.6)
(3.0)
(3.4)
0.8
2.7
1.1
3.6
Operating profit
March 2009
184.0
61.4
16.1
31.7
46.4
28.4
66.0
41.5
Dec 2008
106.4
34.1
9.0
14.7
28.5
20.3
39.7
29.7
Financial year to date
384.0
145.5
28.5
48.9
92.0
69.1
124.8
93.8
Amortisation of mining assets
#
March 2009
59.2
17.0
4.9
12.9
24.4
36.8
Dec 2008
52.5
14.1
4.6
9.9
24.0
36.0
Financial year to date
163.7
46.6
12.8
26.9
77.4
105.0
Net operating profit
March 2009
124.8
44.4
11.2
18.8
50.4
70.7
Dec 2008
53.9
20.0
4.4
4.8
24.7
33.3
Financial year to date
220.3
98.9
15.6
22.0
83.7
113.6
Other (expenses)/income
March 2009
(14.4)
(1.3)
(3.3)
(8.3)
(1.5)
(1.9)
Dec 2008
(9.0)
(6.1)
(2.0)
(1.0)
0.1
0.4
Financial year to date
(30.1)
(12.1)
(7.1)
(10.9)
-
-
Profit before taxation
March 2009
110.4
43.1
7.9
10.4
49.0
68.8
Dec 2008
44.9
13.8
2.5
3.7
24.9
33.8
Financial year to date
190.2
86.8
8.6
11.1
83.7
113.6
Mining and income taxation
March 2009
37.9
13.5
3.0
4.0
17.4
24.7
Dec 2008
16.2
4.9
1.3
0.2
9.8
13.6
Financial year to date
71.3
29.4
4.7
4.4
32.7
44.4
- Normal taxation
March 2009
5.4
-
0.9
4.5
-
-
Dec 2008
(7.5)
(7.5)
-
-
-
-
Financial year to date
5.3
-
0.8
4.5
-
-
- Royalties
March 2009
9.9
4.2
1.3
0.7
3.7
5.5
Dec 2008
8.0
3.3
1.3
0.3
3.1
4.6
Financial year to date
26.5
11.6
3.8
1.0
10.2
13.8
- Deferred taxation
March 2009
22.6
9.4
0.8
(1.3)
13.7
19.2
Dec 2008
15.8
9.1
0.1
-
6.7
9.0
Financial year to date
39.4
17.8
0.2
(1.1)
22.5
30.6
Profit before exceptional items
March 2009
72.5
29.6
4.9
6.5
31.6
44.1
Dec 2008
28.7
8.9
1.2
3.5
15.1
20.2
Financial year to date
118.9
57.4
3.8
6.6
51.0
69.2
Exceptional items
March 2009
0.1
-
-
-
0.1
-
Dec 2008
(0.2)
-
-
-
(0.2)
(0.2)
Financial year to date
(0.1)
-
-
-
(0.1)
(0.2)
Net profit
March 2009
72.6
29.6
4.9
6.5
31.6
44.1
Dec 2008
28.5
8.9
1.2
3.5
14.9
20.0
Financial year to date
118.9
57.4
3.8
6.6
50.9
69.0
Net profit excluding gains and losses on March 2009
71.9
29.2
4.8
6.4
31.4
44.3
foreign exchange, financial instruments
Dec 2008
35.4
13.5
2.4
3.5
16.1
21.8
and exceptional items
Financial year to date
131.2
64.4
6.2
6.6
53.9
73.2
Capital expenditure
March 2009
75.7
34.1
3.8
19.4
10.7
7.8
17.5
11.6
Dec 2008
147.3
64.6
3.4
56.1
15.2
8.1
24.4
11.5
Financial year to date
354.2
170.4
11.1
97.1
53.3
22.2
72.4
30.1
Planned for next six months to September 2009
203.4
86.1
11.1
48.9
35.6
21.7
49.2
30.0
# As a significant portion of the acquisition price was allocated to tenements of St Ives and Agnew on endowment ounces and also as these two Australian operations are entitled to transfer and then off-set tax losses from one company to another, it is not meaningful to split the income statement below operating profit. Figures may not add as they are rounded independently.
21 I GOLD FIELDS RESULTS Q3F2009
Underground and surface
South African rand and metric units
Operating Results
Total Mine
Operations
South African Operations
International Operations
Total
Driefontein
Kloof Beatrix
South
Deep
Deep
#
Total
Ghana Peru
Australia
Tarkwa Damang
Cerro
Corona
St Ives
Agnew
Ore milled / treated (000 ton)
- underground
March 2009
2,889
2,357
868
543
629
317
532
-
-
-
322
210
Dec 2008
2,900
2,411
751
614
798
248
489
-
-
-
329
160
Financial year to date
8,487
7,045
2,343
1,760
2,217
725
1,442
-
-
-
896
546
- surface
March 2009
10,389
840
669
146
-
25
9,549
5,216
1,334
1,434
1,498
67
Dec 2008
10,450
1,047
857
154
-
36
9,403
5,384
1,216
1,199
1,511
93
Financial year to date
30,839
3,098
2,338
668
-
92
27,741
16,107
3,687
3,074
4,581
292
- total
March 2009
13,278
3,197
1,537
689
629
342
10,081
5,216
1,334
1,434
1,820
277
Dec 2008
13,350
3,458
1,608
768
798
284
9,892
5,384
1,216
1,199
1,840
253
Financial year to date
39,326
10,143
4,681
2,428
2,217
817
29,183
16,107
3,687
3,074
5,477
838
Yield (grams per ton)
- underground
March 2009
6.4
6.6
7.1
9.8
4.0
5.7
5.5
-
-
-
4.5
7.1
Dec 2008
6.2
6.2
7.4
7.5
4.2
6.8
6.1
-
-
-
5.2
8.0
Financial year to date
6.3
6.4
7.5
8.3
4.0
5.9
5.8
-
-
-
4.7
7.7
- surface
March 2009
1.1
0.8
0.8
0.6
-
1.2
1.1
0.9
1.2
1.3
1.3
0.8
Dec 2008
1.0
0.6
0.6
0.6
-
2.4
1.0
0.8
1.3
1.6
1.1
1.2
Financial year to date
1.0
0.7
0.7
0.6
-
1.7
1.0
0.9
1.2
1.4
1.3
1.3
- combined
March 2009
2.2
5.0
4.4
7.8
4.0
4.4
1.3
0.9
1.2
1.3
1.9
5.6
Dec 2008
2.1
4.5
3.8
6.1
4.2
5.2
1.3
0.8
1.3
1.6
1.8
5.5
Financial year to date
2.1
4.6
4.1
6.2
4.0
4.7
1.3
0.9
1.2
1.4
1.8
5.4
Gold produced (kilograms)
- underground
March 2009
18,388
15,456
6,179
5,317
2,489
1,471
2,932
-
-
-
1,446
1,486
Dec 2008
17,899
14,915
5,591
4,620
3,320
1,384
2,984
-
-
-
1,699
1,285
Financial year to date
53,202
44,838
17,643
14,563
8,965
3,667
8,364
-
-
-
4,168
4,196
- surface
March 2009
10,926
632
514
89
-
29
10,294
4,733
1,634
1,911
1,961
55
Dec 2008
10,269
656
472
97
-
87
9,613
4,333
1,569
1,914
1,681
116
Financial year to date
30,972
2,125
1,541
431
-
153
28,847
13,926
4,572
4,212
5,766
371
- total
March 2009
29,314
16,088
6,693
5,406
2,489
1,500
13,226
4,733
1,634
1,911
3,407
1,541
Dec 2008
28,168
15,571
6,063
4,717
3,320
1,471
12,597
4,333
1,569
1,914
3,380
1,401
Financial year to date
84,174
46,963
19,184
14,994
8,965
3,820
37,211
13,926
4,572
4,212
9,934
4,567
Operating costs (Rand per ton)
- underground
March 2009
950
1,000
928
1,380
807
929
728
-
-
-
773
660
Dec 2008
953
973
1,081
1,233
630
1,109
853
-
-
-
833
893
Financial year to date
969
1,003
1,038
1,281
681
1,201
804
-
-
-
810
794
- surface
March 2009
175
92
93
92
-
56
183
156
234
180
229
310
Dec 2008
170
79
76
103
-
53
180
155
279
176
191
253
Financial year to date
166
85
82
99
-
54
175
145
251
170
216
280
- total
March 2009
344
761
565 1,107
807
865
212
156
234
180
325
576
Dec 2008
340
703
545
1,006
630
975
214
155
279
176
306
658
Financial year to date
339
723
561
956
681
1,072
206
145
251
170
313
615
# March quarter includes 62,000 tons (December quarter 43,000 tons) of waste processed from underground. In order to show the yield based on ore mined, the calculation of the yield at South
Deep only, excludes the underground waste.
Capital Expenditure
Total Mine
Operations
South African Operations
International Operations
Total
Driefontein
Kloof Beatrix
South
Deep
Total
Ghana Peru
Australia
Tarkwa Damang
Cerro
Corona
St Ives
Agnew
Figures are R’m
Sustaining
March 2009
1,333.3
599.8
237.0
224.3
138.5
-
733.5
364.2
30.0
206.9
83.1
49.3
capital
Dec 2008
1,299.5
630.9
233.5
250.7
146.7
-
668.6
316.1
28.0
144.0
124.5
56.0
Financial year to date
3,729.5
1,829.9
678.0
713.2
438.7
-
1,899.6
957.9
83.1
350.9
376.3
131.4
Project capital
March 2009
264.7
264.7
-
-
-
264.7
-
-
-
-
-
-
Dec 2008
952.1
255.7
-
-
-
255.7
696.4
325.4
-
371.0
-
-
Financial year to date
1,851.1
709.1
-
-
-
709.1
1,142.0
603.3
-
538.7
-
-
Uranium capital
March 2009
24.6
24.6
24.6
-
-
-
-
-
-
-
-
-
Dec 2008
20.2
20.2
20.2
-
-
-
-
-
-
-
-
-
Financial year to date
45.0
45.0
45.0
-
-
-
-
-
-
-
-
-
Brownfields
March
2009
66.6
-
-
-
-
-
66.6
-
7.3
-
31.5
27.8
exploration
Dec 2008
64.8
-
-
-
-
-
64.8
-
6.0
-
37.3
21.5
Financial year to date
202.6
-
-
-
-
-
202.6
-
18.4
-
112.3
71.9
Total capital March
2009
1,689.2
889.1
261.6
224.3
138.5
264.7
800.1
364.2
37.3
206.9
114.6
77.1
expenditure
Dec 2008
2,336.6
906.8
253.7
250.7
146.7
255.7
1,429.8
641.5
34.0
515.0
161.8
77.5
Financial year to date
5,828.2
2,584.0
723.0
713.2
438.7
709.1
3,244.2
1,561.2
101.5
889.6
488.6
203.3
GOLD FIELDS RESULTS Q3F2009 I 22
Development results
Development values represent the actual results of sampling and no allowance has been made for any adjustments which may be necessary when estimating ore
reserves. All figures below exclude shaft sinking metres.
reserves. All figures below exclude shaft sinking metres.
Driefontein
March 2009 quarter
December 2008 quarter
Year to date F2009
Reef
Carbon
Leader
Main
VCR
Carbon
Leader
Main
VCR
Carbon
Leader
Main
VCR
Advanced (m)
3,414
1,041
1,535
1,440
838
1,191
6,305
2,888
4,094
Advanced on reef
(m)
640
311
136
262
301
144
1,221
1,140
362
Sampled (m)
480
315
102
156
213
105
975
987
243
Channel width
(cm)
61
71
29
40
46
67
48
52
43
Average value
-
(g/t)
19.1
6.1
6.0
33.0
11.3
11.7
25.7
9.1
12.6
-
(cm.g/t)
1,159
429
176
1
1,317
520
782
1,233
472
547
Kloof
March 2009 quarter
December 2008 quarter
Year to date F2009
Reef
Kloof
Main
VCR
Kloof
Main
VCR
Kloof
Main
VCR
Advanced (m)
21
693
3,773
153
631
5,070
355
2,364
14,376
Advanced on reef
(m)
9
127
574
48
304
717
170
679
1,965
Sampled (m)
9
147
528
63
297
619
177
669
1,783
Channel width
(cm)
91
127
129
175
140
115
184
113
126
Average value
-
(g/t)
1.5
7.3
15.0
4.0
4.7
22.7
3.7
6.3
17.6
-
(cm.g/t)
133
934
1,937
710
661
2,626
689
716
2,219
Beatrix
March 2009 quarter
December 2008 quarter
Year to date F2009
Reef
Beatrix
Kalkoenkrans
Beatrix
Kalkoenkrans
Beatrix
Kalkoenkrans
Advanced
(m)
5,312
1,939
5,949
2,105
18,290
6,275
Advanced on reef
(m)
1,600
165
1,664
144
4,647
546
Sampled
(m)
1,752
168
1,278
123
4,545
480
Channel width
(cm)
100
128
95
201
100
130
Average value
-
(g/t)
7.0
16.7
9.0
18.3
7.2
18.8
-
(cm.g/t)
693
2,139
857
3,670
727
2,439
South Deep
March 2009 quarter
December 2008 quarter
Year to date F2009
Reef
Elsburg
2,3
Elsburg
Elsburg
Advanced
(m)
1,592
2,180
5,061
Advanced on reef
(m)
855
1,399
3,357
Average value
-
(g/t)
6.4
5.8
5.4
1)
Less development at the higher grade 1, 4 and 5 shafts as a result of the secondary support initiative, with some prospecting in a lower grade VCR zone at 2
shaft.
shaft.
2)
Trackless development in the Elsburg reefs is evaluated by means of the block model.
3)
Full channel width not fully exposed in development, hence not reported.
23 I GOLD FIELDS RESULTS Q3F2009
Administration and corporate information
Corporate Secretary
Cain Farrel
Tel: (+27)(11) 562 9742
Tel: (+27)(11) 562 9742
Fax: (+27)(11) 562 9829
e-mail: cain.farrel@goldfields.co.za
Investor Enquiries
Willie Jacobsz
Tel: (+508) 358 0188
Tel: (+508) 358 0188
Mobile: (+857) 241 7127
e-mail: wjacobsz@gfexpl.com
e-mail: wjacobsz@gfexpl.com
Nikki Catrakilis-Wagner
Tel: (+27)(11) 562 9706
Tel: (+27)(11) 562 9706
Mobile: (+27)(0) 83 309 6720
e-mail: nikki.catrakilis-wagner@goldfields.co.za
e-mail: nikki.catrakilis-wagner@goldfields.co.za
Media Enquiries
Marritt Claassens
Tel: (+27)(11) 562 9774
Tel: (+27)(11) 562 9774
Mobile: (+27)(0) 82 307 3297
e-mail: marrittc@goldfields.co.za
e-mail: marrittc@goldfields.co.za
Transfer Secretaries
South Africa
Computershare Investor Services
(Proprietary) Limited
Ground Floor
70 Marshall Street
Johannesburg, 2001
P O Box 61051
Marshalltown, 2107
Tel: (+27)(11) 370 5000
Computershare Investor Services
(Proprietary) Limited
Ground Floor
70 Marshall Street
Johannesburg, 2001
P O Box 61051
Marshalltown, 2107
Tel: (+27)(11) 370 5000
Fax: (+27)(11) 370 5271
United Kingdom
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
England
Tel: 08716640300 [from UK calls]
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
England
Tel: 08716640300 [from UK calls]
(+44)(20) 8639 3399 [from outside UK]
Fax: (+44)(20) 8658 3430
Fax: (+44)(20) 8658 3430
Website
http://www.goldfields.co.za
Listings
JSE / NYSE / NASDAQ Dubai: GFI
NYX: GFLB
SWX: GOLI
NYX: GFLB
SWX: GOLI
Forward Looking Statements
Certain statements in this document constitute “forward
looking statements” within the meaning of Section 27A
of the US Securities Act of 1933 and Section 21E of
the US Securities Exchange Act of 1934.
looking statements” within the meaning of Section 27A
of the US Securities Act of 1933 and Section 21E of
the US Securities Exchange Act of 1934.
Such forward looking statements involve known and
unknown risks, uncertainties and other important
factors that could cause the actual results,
performance or achievements of the company to be
materially different from the future results, performance
or achievements expressed or implied by such forward
looking statements. Such risks, uncertainties and other
important factors include among others: economic,
business and political conditions in South Africa,
Ghana, Australia, Peru and elsewhere; the ability to
achieve anticipated efficiencies and other cost savings
in connection with past and future acquisitions,
exploration and development activities; decreases in
the market price of gold or copper; hazards associated
with underground and surface gold mining; labour
disruptions; availability terms and deployment of capital
or credit; changes in government regulations,
particularly environmental regulations; and new
legislation affecting mining and mineral rights; changes
in exchange rates; currency devaluations; inflation and
other macro-economic factors, industrial action,
temporary stoppages of mines for safety reasons; and
the impact of the AIDS crisis in South Africa. These
forward looking statements speak only as of the date of
this document.
unknown risks, uncertainties and other important
factors that could cause the actual results,
performance or achievements of the company to be
materially different from the future results, performance
or achievements expressed or implied by such forward
looking statements. Such risks, uncertainties and other
important factors include among others: economic,
business and political conditions in South Africa,
Ghana, Australia, Peru and elsewhere; the ability to
achieve anticipated efficiencies and other cost savings
in connection with past and future acquisitions,
exploration and development activities; decreases in
the market price of gold or copper; hazards associated
with underground and surface gold mining; labour
disruptions; availability terms and deployment of capital
or credit; changes in government regulations,
particularly environmental regulations; and new
legislation affecting mining and mineral rights; changes
in exchange rates; currency devaluations; inflation and
other macro-economic factors, industrial action,
temporary stoppages of mines for safety reasons; and
the impact of the AIDS crisis in South Africa. These
forward looking statements speak only as of the date of
this document.
The company undertakes no obligation to update
publicly or release any revisions to these forward
looking statements to reflect events or circumstances
after the date of this document or to reflect the
occurrence of unanticipated events.
publicly or release any revisions to these forward
looking statements to reflect events or circumstances
after the date of this document or to reflect the
occurrence of unanticipated events.
Registered Offices
Johannesburg
Gold Fields Limited
150 Helen Road
Sandown
Sandton
2196
Postnet Suite 252
Private Bag X30500
Houghton 2041
Tel: (+27)(11) 562 9700
Gold Fields Limited
150 Helen Road
Sandown
Sandton
2196
Postnet Suite 252
Private Bag X30500
Houghton 2041
Tel: (+27)(11) 562 9700
Fax: (+27)(11) 562 9829
Secretaries Offices
London
St James’s Corporate Services Limited
6 St James’s Place
London SW1A 1NP
United Kingdom
Tel: (+44)(20) 7499 3916
St James’s Corporate Services Limited
6 St James’s Place
London SW1A 1NP
United Kingdom
Tel: (+44)(20) 7499 3916
Fax: (+44)(20) 7491 1989
American Depository Receipts
Transfer Agent
Transfer Agent
Bank of New York Mellon
BNY Mellon Shareowner Services
P O Box 358516
Pittsburgh, PA15252-8516
BNY Mellon Shareowner Services
P O Box 358516
Pittsburgh, PA15252-8516
US toll-free telephone: (1)(888) 269 2377
Tel: (+1) 201 680 6825
Tel: (+1) 201 680 6825
e-mail: shrrelations@bnymellon.com
Gold Fields Limited
Incorporated in the Republic of South Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN – ZAE 000018123
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN – ZAE 000018123
Directors
A J Wright (Chairman) °
N J Holland *
N J Holland *
●
(Chief Executive Officer)
K Ansah
#
°
CA Carolus °
R Dañino**°
J G Hopwood °
G Marcus
J G Hopwood °
G Marcus
●
R P Menell °
D N Murray °
D M J Ncube °
R L Pennant-Rea *°
D M J Ncube °
R L Pennant-Rea *°
C I von Christierson °
G M Wilson °
G M Wilson °
* British
#
Ghanaian
●
Non-independent Director
° Independent Director
** Peruvian
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
has duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
Date: 7 May 2009
GOLD FIELDS LIMITED
By:
Name: Mr W J Jacobsz
Title: Senior Vice President: Investor
Relations and Corporate Affairs