| Thu 3 May 2007, 8:00 | | GFI - Gold Fields Limited - Quarter Ended 31 March |
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GFI
GOGOF
GFI - Gold Fields Limited - Quarter Ended 31 March 2007
Gold Fields Limited
Incorporated in the Republic of South Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN: ZAE000018123
South Deep acquisition finalised,
equity raising successfully completed and
Western Areas hedge retired
QUARTER ENDED 31 MARCH 2007
News release
Q3 F2007 results
- Unaudited -
March 2007 quarter salient features:
we deliver
JOHANNESBURG. 3 May 2007 - Gold Fields Limited (NYSE & JSE: GFI) today
announced net earnings excluding gains and losses on foreign exchange and
exceptional items for the March 2007 quarter of R512 million compared with R564
million in the December 2006 quarter and R397 million for the restated March
quarter of 2006. In US dollar terms net earnings excluding gains and losses on
foreign exchange and exceptional items for the March 2007 quarter were US$71
million compared with US$76 million in the December 2006 quarter and US$63
million for the restated March quarter of 2006.
- Acquisition of South Deep finalised as remaining Western Areas Limited
shares purchased;
- Equity raising successfully completed with gross proceeds received of R10.3
billion (US$1.4 billion), used to retire debt of R8.8 billion (US$1.2 billion);
- Western Areas hedge retired cost effectively in a rising gold price
environment by generating realised gains of US$21 million on the long gold
delta position. A further US$20 million of marked to market losses were avoided
based on the gold price as at the end of March of US$663 per ounce;
- Attributable gold production 989,000 ounces at a cash cost of US$399 per
ounce.
Ian Cockerill, Chief Executive Officer of Gold Fields, said:
"This quarter has been extremely challenging for Gold Fields. All operations
with the exception of Driefontein showed a drop in production due to a
combination of lower grades, volume and a slow start up post the Christmas
break in South Africa, while Choco 10 continues to suffer as a result of water
shortages. Unit cash costs have risen as a result of lower production.
While the increase in the rand gold price achieved more than offset the lower
production resulting in a 3 per cent increase in revenue, we are very focused
on ensuring that our shareholders get the benefit of a higher gold price
through increased earnings. As a result we have instituted a Group wide effort
focusing on four key components of operational excellence, namely, safety and
health, quality gold production, unit cost control and improved productivity.
Delivery on these initiatives will see better performances from the operations
in coming quarters."
Stock data
Number of shares in issue
- at end March 2007 650,405,008
- average for the quarter 620,105,799
Free Float 100%
ADR Ratio 1:1
Bloomberg / Reuters GFISJ / GFLJ.J
JSE Limited - (GFI)
Range - Quarter ZAR117.00 - ZAR134.99
Average Volume - Quarter 3,302,577 shares / day
NYSE - (GFI)
Range - Quarter US$15.85 - US$19.20
Average Volume - Quarter 2,207,431 shares / day
Salient features
South African Rand
Nine months to Quarter
Restated
Restated
March March March Dec March
2006 2007 2006 2006 2007
Gold
produced* 95,043 93,592 31,809 31,580 30,750 kg
Total cash
costs 67,026 85,328 67,831 83,707 92,490 R/kg
Tons milled 36,715 39,349 12,738 13,109 13,382 000
Revenue 100,887 145,882 109,500 144,485 151,184 R/kg
Operating costs 191 226 187 227 237 R/ton
Operating profit 3,265 5,796 1,377 1,969 1,840 Rm
Operating margin 32 40 37 41 37 %
852 1,835 504 767 370 Rm
Net earnings 173 337 102 148 60 SA c.p.s.
812 1,682 467 762 228 Rm
Headline earnings 164 309 94 147 37 SA c.p.s.
Net earnings 762 1,810 397 564 512 Rm
excluding
gains and 154 333 80 108 83 SA c.p.s.
losses on
foreign exchange
and exceptional
items
United States Dollars
Quarter Nine months to
Restated
Restated
March Dec March March March
2007 2006 2006 2007 2006
Gold
produced* oz (000) 989 1,015 1,023 3,009 3,056
Total cash
costs $/oz 399 353 344 367 326
Tons milled 000 13,382 13,109 1,273 39,349 36,715
Revenue $/oz 652 609 555 628 490
Operating
costs $/ton 33 31 30 31 30
Operating profit $m 255 267 221 802 510
Operating margin % 37 41 37 40 32
Net earnings $m 52 104 80 254 133
US c.p.s. 8 20 16 47 27
Headline earnings $m 32 103 74 233 127
US c.p.s. 5 20 15 43 26
Net earnings $m 71 76 63 250 119
excluding US c.p.s. 11 15 13 46 24
gains and
losses on
foreign
exchange and
exceptional
items
* Attributable - All companies wholly owned except for Ghana (71.1%), Choco 10
(95%) and South Deep (98.85% compared with 91.95% at the end of December 2006).
Change in accounting policy - Ore Reserve Development (ORD) costs are
capitalised and amortised.
Health and safety
We regret to report six fatal injuries during the March quarter compared with
three during the December quarter. All fatal accidents occurred at the South
African operations. The fatal injury frequency rate for the March quarter was
0.15 per million man hours worked, a regression on the previous quarter`s
figure of 0.08. The lost time injury frequency rate improved from 10.37 to
9.99, the serious injury frequency rate improved from 5.4 to 5.1 and the
days lost frequency rate improved from 325 to 280 per million man hours
worked. All rates as from the March quarter include South Deep.
Management is continuing to actively seek improvements to meet the Ontario
safety standards and Mine Health and Safety Council milestones on all of our
mines. Behavioural based interventions continue at all operations in the group
The South African operations are currently being audited for OHSAS 18001
certification.
Financial review
Quarter ended 3 1 March 200 7 compared with quarter ended 3 1 Dec ember 200 6
Revenue Attributable gold production decreased by 3 per cent from 1,015,000
ounces in the December 2006 quarter to 989,000 ounces in the March quarter.
Attributable production at the South African operations increased marginally
from 652,000 ounces to 656,000 ounces. Attributable production at the
international operations decreased 8 per cent from 363,000 ounces to 333,000
ounces.
The increase in gold production at the South African operations over the
previous quarter was primarily due to the inclusion of a full quarter`s
production from South Deep. South Deep produced 66,000 attributable ounces
compared with 24,500 attributable ounces for the month of December - the
effective date of acquisition being 1 December 2006. Production at Driefontein
increased from 247,300 to 251,200 ounces as a result of a higher yield. Gold
production at Kloof decreased from 230,600 to 220,000 ounces on the back of a
reduction in underground ore produced due to the Christmas break and less
surface material at payable grades. The Christmas break in addition to a low
mine call factor affected Beatrix this quarter, with gold production declining
from 149,500 to 119,200 ounces.
At the international operations, all mines reported lower gold production
compared with the December quarter. Gold production at Tarkwa decreased due to
lower grades at both the CIL and heap leach operations. Damang`s gold
production decreased as a result of lower available high-grade fresh ore
tonnages mined and processed. At Choco 10 gold production reduced significantly
as previously indicated as a result of water shortages, which reduced plant
throughput and this will continue into the coming quarter. The ongoing strategy
of reducing reliance on rain water is continuing through a number of
initiatives which have not yet borne fruit. At St Ives the decrease in gold
production was as a result of reduced fresh ore from the open pits, which
increased the processing of lower grade stockpiled Mars ore. At Agnew, gold
production decreased by over 10 per cent for the quarter as a result of a
reduction in underground grades. This was caused by dilution from mining
adjacent to the Kim fault.
The average quarterly US dollar gold price increased from US$609 per ounce in
the December quarter to US$652 per ounce this quarter, a 7 per cent increase.
The average Rand/US dollar exchange rate strengthened by 2 per cent quarter on
quarter, averaging R7.21, compared with R7.38 in the December quarter.
As a result of the above factors, the rand gold price increased from R144,485
per kilogram to R151,184 per kilogram, a 5 per cent improvement.
The increase in the rand gold price achieved more than offset the lower
production and resulted in revenue increasing in rand terms from R4,854 million
(US$658 million) to R4,994 million (US$693 million) quarter on quarter.
Operating costs
Operating costs for the March quarter, amounted to R3,165 million (US$439
million) compared with R2,975 million (US$403 million) in the December quarter,
an increase of 6 per cent or R190 million. The increase at the South African
operations amounted to 12 per cent or R217 million (US$35 million), from R1,795
million (US$244 million) to R2,012 million (US$279 million). Of the R217
million (US$35 million) increase, R190 million (US$26 million) was due to the
inclusion of South Deep for the full quarter. The increase at the remaining
South African operations amounted to R27 million (US$9 million) or 1.5 per
cent. Driefontein`s costs increased by R17 million (US$4 million) due to
maintenance performed over the Christmas closed period and the purchase of
water from local government due to the cessation of Driefontein`s water
treatment plant. Kloof`s costs increased by R14 million (US$4 million) due to
maintenance during the Christmas closed period and processing of what proved to
be a disappointingly low grade stockpile built up for the Christmas break.
Beatrix`s costs reduced by R4 million (increased by US$1 million) due to lower
volumes mined.
Costs at the international operations, including gold-in-process movements,
amounted to R1,107 million (US$153 million), compared with R1,112 million
(US$151 million) incurred in the December quarter. In dollar terms, including
gold-in-process, costs at Tarkwa increased by US$4 million as a result of the
cost of on- mine power generation in line with the national load shedding
requirements, and price increases in consumables, especially cyanide. At
Damang, costs were similar quarter on quarter with the additional power costs
offset by the lower mining volumes. Operating costs at Choco 10 decreased by
US$4 million due to the gold-in-process credit as ore which could not be
processed due to the lack of water to run the plant, was stockpiled and due to
a build- up of 5,000 ounces of gold in circuit at quarter end. At St Ives,
costs in Australian dollar terms including gold-in-process were similar, as the
cost impact of lower volumes mined and processed were offset by a
gold-in-process release. Agnew reported slightly increased costs mainly due to
a power credit received in the December quarter.
Effect of capitalising Ore Reserve Development (ORD) on unit costs Ore Reserve
Development has been capitalised in the March 2007 and December 2006 quarter`s
results and retrospectively in the comparative results in this report. This
brings its accounting treatment in line with our peers and is the preferred
methodology for accounting for ORD in the industry.
Operating margin
The net effect of the changes in revenue and costs, after taking into account
gold-in-process movements, was an operating profit of R1,840 million (US$255
million). This was 7 per cent below the R1,969 million (US$267 million)
achieved in the December quarter. The Group operating margin reduced from 41
per cent to 37 per cent. The margin at the South African operations decreased
from 39 per cent to 35 per cent, while the margin at the international
operations decreased from 43 per cent to 41 per cent. The decrease in the
margin was driven by the inclusion of South Deep, with a margin of 3 per cent,
the operating loss at Choco 10 and the lower production.
Amortisation
Amortisation decreased from R745 million (US$101 million) in the December
quarter to R704 million (US$98 million) in the March quarter. The decrease at
the International operations of R25 million (US$2 million) resulted from the
lower production at Choco 10 and Agnew. At the South African operations
amortisation decreased by R37 million (US$4 million) in line with the lower
production and development rates, partially offset by the inclusion of South
Deep`s amortisation for the full quarter.
Other
Net interest paid increased from R27 million (US$4 million) in the December
quarter to R112 million (US$15 million) in the March quarter. This change
reflects additional interest paid of R34 million (US$5 million) on a loan to
finance the South Deep acquisition and R33 million (US$5 million) interest paid
on a loan of US$528 million borrowed to close out the Western Areas gold
derivative.
The loss on foreign exchange of R380 million (US$53 million), compares with a
gain of R264 million (US$36 million) in the December quarter. The March
quarter`s loss consists largely of an exchange loss of R266 million (US$37
million) on the US$1.2 billion loan raised to finance the acquisition of 50 per
cent of the South Deep mine. This compares with a gain of R224 million (US$30
million) in the December quarter on the same loan, resulting in a net R42
million (US$6 million) exchange loss on the loan since its drawdown on 1
December 2006.
Also included in the R380 million (US$53 million) loss in the current quarter
was an exchange loss on the close out of the Western Areas gold derivative
amounting to R175 million (US$24 million). This derivative was settled at an
exchange rate of R7.30 to the US dollar, compared with R6.98 to the US dollar
at the beginning of the quarter, resulting in the aforesaid exchange loss of
R175 million (US$24 million). Also included was a R53 million (US$7 million)
exchange gain on the US$528 million loan raised to finance the close out the
Western Areas gold derivative, offset by the negative marked to market movement
of R13 million (US$ 2 million) on a foreign exchange contract taken out to
hedge this loan. Finally an unrealised exchange gain of R16 million (US$2
million) was incurred relating to a US dollar denominated insurance receivable
at South Deep.
The loss on financial instruments increased from R19 million (US$3 million) to
R35 million (US$5 million) for the March quarter. The March quarter`s loss
included a loss of R105 million (US$14 million) on the Western Areas gold
derivative compared with a loss of R44 million (US$6 million) in the December
quarter. This loss resulted from an increase in the spot gold price from
US$634.22 per ounce at the beginning of the quarter to US$643.00 per ounce at
the close out date, as well as the costs associated with the market spread at
close out resulting in the marked to market value of the gold derivative
increasing from US$540 million at the beginning of the quarter to US$549
million at the close out date. The March quarter`s loss also included a loss of
R115 million (US$16 million) on a forward exchange contract taken out to part
settle the US$1.2 billion loan to finance the South Deep acquisition. This was
partially offset by marked to market gains on share warrants of R38 million
(US$5 million), a gain of R133 million (US$18 million) on gold purchases
effected by Western Areas as part of the gold derivative close out process and
a gain of R14 million (US$2 million) on the close out of a US dollar / Rand
forward purchase.
The R133 million (US$18 million) gain on gold purchases effected by Western
Areas for the quarter was made on the accumulated delta purchase of 1,005,000
ounces, which includes the 275,000 ounces purchased in December 2006, together
with 730,000 ounces purchased in the March quarter at a price of US$618.95 per
ounce. The total delta purchase of 1,005,000 ounces since date of acquisition
was at an average gold price of US$622.14 per ounce and was subsequently sold
at a gold price of US$643.00 on 24 January 2007. This resulted in a net gain
since inception of R151 million (US$21 million).
The net effect of the Western Areas gold derivative since date of acquisition,
1 December 2006, was a realised loss of R149 million (US$20 million). This
resulted from an increase from US$539 million, being the take-on marked to
market valuation at a gold price of US$631.75 per ounce, compared with the
close out payment of US$549 million net of scheduled maturities of US$10
million, at a gold price of US$643.00 per ounce.
The net effect of the various transactions accounted for under the loss on
foreign exchange and under the loss on financial instruments as they relate to
the US$1.2 billion loan was a net exchange loss of R163 million (US$23
million). This exchange difference arises as a consequence of raising the loan
at an exchange rate of R7.16 to the US dollar on 1 December 2006 and settling
the same liability on 8 February 2007 at a weighted average exchange rate of
R7.30 to the US dollar.
Close out of Western Areas gold derivative structure
Net
Hedge Delta position
US$m US$m US$m
December
MtM* at take on (539) - (539)
December maturity 5 - 5
MtM loss for the quarter (6) - (6)
Profit on Delta - 3 3
MtM at quarter end (540) 3 (537)
March quarter
MtM beginning of quarter (540) 3 (537)
January maturity 5 - 5
Realised (loss)/gain on close-out (14) 18 4
Close-out (549) 21 (528)
* MtM - Marked to market.
Exploration
Exploration expenditure increased from R65 million (US$9 million) in the
December quarter to R76 million (US$11 million) in the March quarter. Please
refer to the Exploration and Corporate Development section for more detail.
Exceptional items
This quarter saw an increase in exceptional items from R8 million (US$1
million) to R192 million (US$27 million) and includes a profit on the sale of
shares in Avoca of R123 million (US$17 million), profit on the sale of the
Bibiani project of R43 million (US$6 million) and the sale of other sundry
investments.
Taxation
Taxation for the quarter amounted to R262 million (US$36 million) compared with
R480 million (US$65 million) in the December quarter. The tax provision
includes normal and deferred taxation on all operations together with
government royalties at the international operations.
Earnings
Net profit attributable to ordinary shareholders amounted to R370 million
(US$52 million) or 60 SA cents per share (US$0.08 per share), compared with
R767 million (US$104 million) or 148 SA cents per share (US$0.20 per share) in
the previous quarter.
Headline earnings i.e. earnings less the after tax effect of asset sales,
impairments and the sale of investments, was R228 million (US$32 million) or 37
SA cents per share (US$0.05 per share), compared with earnings of R762 million
(US$103 million) or 147 SA cents per share (US$0.20 per share) last quarter.
Earnings excluding exceptional items as well as net gains and losses on foreign
exchange amounted to R512 million (US$71 million) or 83 SA cents per share
(US$0.11 per share), compared with earnings of R564 million (US$76 million) or
108 SA cents per share (US$0.15 per share) reported last quarter.
Cash flow
Cash outflow from operating activities for the quarter was R2,615 million
(US$359 million), compared with an inflow in the December quarter of R1,381
million (US$190 million). This quarter on quarter decrease of R3,996 million
(US$549 million) comprises a decrease of R807 million (US$107 million) in
profit before tax and exceptional items, the settlement of the Western Areas
gold derivative of R3,894 million (US$534 million), and additional tax payments
of R92 million (US$19 million), mainly at the South African operations.
This was partially offset by a reduced investment in working capital quarter on
quarter and a change in non-cash items of R464 million (US$64 million). The
change in non-cash items is mainly a quarter on quarter movement on the hedge
up until close-out together with an exchange loss on loans. The investment in
working capital decreased from R321 million (US$44 million) to R132 million
(US$18 million). The increase in working capital for the quarter of R132
million was mainly due to an increase in gold inventory of R63 million (US$9
million) and an increase in gold debtors.
Dividends paid during the quarter amounted to R586 million (US$81 million). No
dividends were paid in the December quarter.
Capital expenditure amounted to R1,341 million (US$186 million) similar to the
R1,376 million (US$187 million) in the December quarter. At the South African
operations capital expenditure increased from R565 million (US$77 million) in
the December quarter to R591 million (US$82 million) in the March quarter. The
increase was due to the inclusion of South Deep which increased from R41
million (US$6 million) to R79 million (US$11 million). The majority of this
expenditure was incurred on the initial stages of the 94 level refrigeration
plant (R12 million), the ventilation shaft equipping and deepening (R23
million) and ore reserve development. At the other South African operations the
main areas of capital expenditure during the quarter were ore reserve
development at Driefontein, Kloof and Beatrix of R80 million (US$11 million),
R96 million (US$13 million) and R66 million (US$9 million) respectively,
together with the other major projects. At Driefontein expenditure at the 1 and
5 shaft complex amounted to R14 million (US$2 million), R4 million (US$1
million) was incurred on the 4 shaft pillar extraction project and R38 million
(US$5 million) was incurred on the 9 shaft deepening project. At Kloof,
expenditure on the 4 sub-vertical shaft amounted to R19 million (US$3 million)
for the quarter, R11 million (US$2 million) was incurred on the 1 shaft pillar
extraction project and R16 million (US$2 million) was incurred on the KEA drop
down project. At Beatrix, expenditure on the 3 shaft project amounted to R34
million (US$5 million) and R7 million (US$1 million) was incurred on
development of the North Block at West shaft.
At the Ghanaian operations, capital expenditure at Tarkwa decreased from R189
million (US$26 million) to R152 million (US$21 million) quarter on quarter.
Capital expenditure continued on capital waste mining at the Teberebie cutback
(US$5 million), progress on the joint power project (US$5 million), on the CIL
expansion project (US$3 million) and expansion of the secondary fleet (US$3
million). Damang increased its capital investment to R65 million (US$9 million)
from R53 million (US$7 million) with the majority of this expenditure at the
Damang cutback (US$6 million) and the raising of the tailings storage facility
embankments (US$2 million).
At Choco 10 capital expenditure decreased from R38 million (US$5 million) to
R17 million (US$2 million) as exploration drilling and other projects were
deferred where possible as a result of lower production and reduced cash flow
from the project.
In Australia capital expenditure at St Ives increased from R126 million (A$22
million) to R148 million (A$26 million) due to increased development costs. At
Agnew, capital expenditure decreased from R56 million (A$10 million) to R33
million (A$6 million), the decrease as a result of the completion of capital
expenditure on the current Songvang pit shell which amounted to R23 million
(A$4 million) in the December quarter. The majority of the balance was
expenditure on development and exploration.
Capital expenditure at the Cerro Corona mine in Peru amounted to R335 million
(US$46 million) in the March quarter compared with R341 million (US$46 million)
in the December quarter.
Purchase of investments for the quarter amounted to R350 million (US$48
million) and included R296 million (US$41 million) on the purchase of Sino Gold
shares, R16 million (US$2 million) on the purchase of CMQ Resources shares and
R32 million (US$4 million) on the purchase of an unlisted subsidiary in South
Africa.
Proceeds on the sale of investments amounted to R306 million (US$42 million)
and included R147 million (US$20 million) from the sale of shares in Avoca
Resources, R41 million (US$6 million) from the sale of the Bibiani project, R14
million (US$2 million) from the sale of shares in TLC Ventures and R100 million
(US$14 million) from the sale of shares in Comaplex.
The net cash flow from financing activities amounted to R5.5 billion (US$756
million). Net proceeds from the capital raising amounted to R10.1 billion
(US$1.4 billion). Loans received amounted to R4.4 billion (US$609 million) and
consisted of R4.0 billion (US$551 million) borrowed to close out the Western
Areas gold derivative and repay a short-term borrowing from Standard Bank. R180
million (US$25 million) was drawn down on the facility to finance the Cerro
Corona project, R169 million (US$23 million) was borrowed by Western Areas as a
short-term loan and R72 million (US$10 million) was drawn down on a three year
term facility.
Loans repaid amounted to R9,036 million (US$1,250 million) and included R8,702
million paid to close out the US$1.2 billion borrowed to finance the purchase
of 50 per cent of South Deep, R165 million (US$25 million) on the half yearly
Mvelaphanda loan repayment and R169 million (US$25 million) to repay the
Western Areas short-term facility with Standard Bank.
Net cash inflow for the quarter was R880 million (US$117 million).
After accounting for a translation gain of R35 million (US$4 million), the cash
balance at the end of March was R2,328 million (US$323 million). The cash
balance at the end of December was R1,413 million (US$202 million).
Detailed and operational
review
Cost and revenue optimisation initiatives
Project 500
Project 500 was initiated at the South African operations in September 2003 to
increase revenue and reduce costs through two sub-projects i.e. Project 400 and
Project 100. These projects have proved successful and led to additional
projects, Project 100+ and Project Beyond as detailed below.
Project 400
Project 400 was aimed at improving revenue such that an additional R400 million
(US$55 million) per annum could be generated on a sustainable basis. This was
to be achieved through a basket of productivity initiatives; by eliminating
non-contributing production and replacing low-grade surface material with
higher margin underground material - all aimed at improved quality volumes.
Operational Excellence, a change programme, was initiated in April 2005 to
create the required skills, behaviour and environment to improve efficiencies.
The objective of these initiatives is to increase mining volumes whilst
maintaining yields as close as possible to life of mine reserve yields.
Reconciliation of achieved yields to gold reserves
F2005 F2006 Dec March
Quarter ended
* 2006* 2007*
Driefontein:
Life of mine head grade as per
published declarations 8.1 8.0 8.0 8.0
Life of mine head grade adjusted
for estimated metallurgical
recoveries 7.8 7.8 7.8 7.8
Driefontein (underground yields
achieved) 8.3 8.1 7.5 7.6
Kloof:
Life of mine head grade as per
published declarations 10.5 10.0 10.0 10.0
Life of mine head grade adjusted
for estimated metallurgical
recoveries** 10.2 9.7 9.7 9.7
Kloof (underground yields
achieved) 9.1 8.7 7.8 8.0
Beatrix:
Life of mine head grade as per
published declarations 5.5 5.5 5.5 5.5
Life of mine head grade adjusted
for estimated metallurgical
recoveries 5.3 5.3 5.3 5.3
Beatrix (underground yields
achieved) 5.0 5.2 5.0 4.6
South Deep+:
Life of mine head grade as per
published declarations - - 6.1 6.1
Life of mine head grade adjusted
for estimated metallurgical
recoveries - - 5.9 5.9
South Deep (underground yields
achieved) - - 7.7 6.1
* Based on reserve statement at 31 December 2005.
** Kloof`s life of mine head grade as adjusted for estimated metallurgical
recoveries, is higher than that currently achieved due to the high grad
main shaft pillar, limited mining of which only commenced recently.
+ The acquisition of South Deep is effective from 1 December 2006.
Based on the reserve statement as at 30 June 2006.
Project 100+
Following a solid base, Project 100+ remains a dedicated focus for ongoing cost
reduction through eliminating inefficiencies and ongoing investment in cost
reductions.
The Eskom demand side management (DSM) projects are progressing well and during
the quarter, five new projects involving water control, thermal ice storage,
ventilation fan control, compressed air control and energy efficient lighting
were approved, and a further four are expected in June quarter. These projects,
which are funded by Eskom, collectively shift 50 megawatt of load out of the
peak tariff period resulting in an annual saving of more than R3 million by
financial 2009. The estimated Eskom DSM savings for financial 2007 will exceed
R5 million, growing to R12 million in financial 2008 and R20 million by
financial 2009.
The conversion from diesel to battery power for underground locomotives is
progressing to plan with the manufacture of locomotives underway and the
preparation of battery charging bays and the training of personnel. The project
will deliver long term cost savings due to the lower operating cost and higher
efficiency of battery locomotives, and has an added benefit in improved
underground environmental conditions. An underground rail track up-grade
project has commenced.
The Pump Efficiency Monitoring project has entered a monitoring phase, and this
will allow maintenance practices to be modified to initiate maintenance based
on pump efficiency. This will deliver savings in financial 2008 due to pumps
operating at higher efficiency, and due to lower pump repair costs.
Project Beyond
Despite some softening in rise and fall contracts (e.g. diesel, copper and
beef), inflationary pressures continue unabated, with input costs from steel,
timber, cyanide, labour hire and cement continuing to rise. Increasing oil
prices, continued global demand growth in resources, shortages in food
categories such as maize and Mittal steel communicating price increases for
April, are expected to continue cost pressures over the coming quarters.
During the March quarter a further estimated annualised R24 million contracted
benefit was achieved. The bulk of this benefit was delivered in the form of
added margin due to optimisation of explosives of around R19 million, measured
against a historical performance base and the balance of around R5 million came
from improved traction motor specification and contract changes to reduce total
repair costs. The cumulative financial year to date South Africa contracted
benefit is now at R85 million.
Strategic value was delivered through developing a performance-aligned
arrangement for underground support and will be finalised and rolled out during
the June quarter. Improving procurement support to capital projects and
completing a South Deep spend analysis also received focus.
During the June quarter continued focus will be on the rollout of the
explosives performance contract, drillsteel wastage controls and engineering
total cost projects. Analysing, planning and initiating South Deep spend
synergies and opportunities will also be looked at.
Global / International Supply Chain and Strategic
Sourcing Optimisation
Global integrated supply chain initiatives continued, delivering total cost
benefits of around US$2 million across various competitive tendering and
strategic partnering initiatives, largely through contributions from Australia
(i.e. electric cables, ground support, survey supplies, stationary and cement
rebates) with some contribution from Ghana (i.e. increased diesel rebate
benefits).
A further multi-year benefits case was delivered in the form of planning and
initiating the development of a local earth moving tyre retread facility at the
Tarkwa operation through a partnership arrangement. Following the building and
commissioning of the retread facility during 2007, cost benefits are estimated
at a conservative US$3 million per annum, excluding the production benefit of
ensuring fleet uptime and excluding saving that can be achieved at Damang. The
International cumulative financial year to date contracted benefit, including
the tyres post 2007, stands at an annualised US$12 million.
Strategic value was delivered through developing long-term global strategic
partnering arrangements for the supply of earth moving tyres, establishing a
risk and reward alliance model for the delivery of the Ghana CIL plant
expansion project and good progress was made on the structuring of the outbound
concentrate logistics model in Peru.
For the June quarter priority will be to conclude the Peru outbound concentrate
logistics model, optimise inbound supply chain logistics and economies in
Venezuela, validate continuous improvement opportunities in Australia and
contract optimisation priorities related to South American procurement.
South African Operations
Driefontein
March December
2007 2006
Gold produced - kg 7,814 7,692
- 000`ozs 251.2 247.3
Yield - underground - g/t 7.6 7.5
- combined - g/t 4.8 4.6
Total cash costs - R/kg 82,506 81,721
- US$/oz 356 344
Gold production increased by 2 per cent from 247,300 ounces in the December
quarter to 251,200 ounces in the March quarter, which was higher than forecast.
Underground tonnage decreased marginally from 937,000 tons in the December
quarter to 930,000 tons in the March quarter, with a concomitant improvement in
yield from 7.5 to 7.6 grams per ton. Surface tonnage decreased from 736,000
tons in the December quarter to 704,000 tons in the March quarter in order to
maintain yields.
Operating costs increased by 2 per cent from R661 million (US$90 million) to
R677 million (US$94 million) due to maintenance performed during the Christmas
closure period, the premium being paid for scarce skills and the cessation of
the Driefontein water treatment plant, which necessitated the purchase of water
from local government. Total cash costs increased by 1 per cent in rand terms
from R81,721 to R82,506 per kilogram. In US dollar terms, total cash costs
increased 3 per cent from US$344 to US$356 per ounce.
Operating profit increased by 13 per cent from R450 million (US$61 million) in
the December quarter to R510 million (US$71 million) in the March quarter due
to the higher gold production and the higher rand gold price.
Capital expenditure increased from R177 million (US$24 million) to R196 million
(US$27 million). The major portion of this expenditure was spent on the 1, 5
and 9 shaft projects. The 9 shaft project is still in the advanced design phase
and tenders for shaft sinking are being adjudicated. Shaft sinking should
commence as planned by October 2007.
Gold production for the June quarter is forecast to be similar to the March
quarter. As a consequence unit costs are expected to remain flat.
Kloof
March December
2007 2006
Gold produced - kg 6,843 7,172
- 000`ozs 220.0 230.6
Yield - underground - g/t 8.0 7.8
- combined - g/t 7.4 7.3
Total cash costs - R/kg 90,180 84,021
- US$/oz 389 354
Gold production at Kloof decreased, from 230,600 ounces in the December quarter
to 220,000 ounces in the March quarter. This was as a result of a decrease in
ore processed from 986,000 to 920,000 tons, partially offset by an increase in
yield. The lower tonnage was due to lower volumes processed over the Christmas
break, a slow start-up in January and an incident relating to an Eskom power
outage. Also lower volumes were mined as we move into lower grade slope reef
areas. Despite this, underground grades increased mainly due to an improved
mine call factor.
Surface tons milled reduced by 25 per cent due to lower than expected grades
which in turn marginally improved the combined yield.
The operating costs at R644 million (US$89 million) for the quarter increased
by 2 per cent compared with the previous quarter`s cost of R629 million (US$85
million). This was mainly due to the carrying cost of processing 56,000 tons of
stockpiled material and shaft infrastructure maintenance over the Christmas
break. As a result of the lower gold production and increased cost, the total
cash cost increased by 7 per cent to R90,180 per kilogram, compared with the
R84,021 per kilogram in the December quarter.
In US dollar terms total cash costs increased by 10 per cent from US$354 to
US$389 per ounce. Operating profit was marginally lower at R390 million (US$54
million) for the March quarter, compared with R407 million (US$55 million) the
previous quarter.
Capital expenditure was virtually unchanged at R193 million (US$27 million) and
includes expenditure on the KEA drop-down project.
Gold production for the June quarter is forecast marginally higher than the
March quarter, with a resultant decrease in total cash costs.
Beatrix
March December
2007 2006
Gold produced - kg 3,708 4,650
- 000`ozs 119.2 149.5
Yield - underground - g/t 4.6 5.0
Total cash costs - R/kg 99,43 80,237
- US$/oz 429 4 338
Gold production at Beatrix reduced from 149,500 ounces in the December quarter
to 119,200 ounces in the March quarter. Tons milled reduced from 935,000 to
807,000 tons in the March quarter primarily due to limited stockpiles at the
beginning of the Christmas break, and a slow build-up to historical production
levels. The yield also regressed from 5.0 to 4.6 grams per ton as a result of a
short- term decline in mine call factor.
Operating costs quarter on quarter decreased by 1 per cent, from R392 million
(US$53 million) to R388 million (US$54 million). The decrease in operating cost
was mainly due to the lower production and continued cost control offset by
increased material prices. Total cash costs increased from R80,237 per kilogram
(US$338 per ounce) in the December quarter to R99,434 per kilogram (US$429 per
ounce) in the March quarter, due to the decrease in gold production. Beatrix
posted an operating profit of R175 million (US$24 million) for the quarter
compared with R275 million (US$37 million) in the December quarter.
Capital expenditure amounted to R124 million (US$17 million) in the March
quarter and includes R66 million (US$9 million) for ore reserve development and
R35 million (US$5 million) on the 3 shaft project.
Gold production is forecast to increase to 140,000 ounces in the June quarter,
with an accompanying reduction in cash costs.
South Deep
March December
2007 2006
Gold produced - kg 2,075 838
- 000`ozs 66.7 26.9
Gold sold - kg 2,321 682
- 000`ozs 74.6 21.9
Yield - underground - g/t 6.1 7.7
- combined - g/t 4.3 4.6
Total cash costs - R/kg 141,017 133,724
- US$/oz 608 564
At South Deep gold produced increased from 26,900 to 66,700 ounces. The
increase in gold produced together with the other variances are mainly due to
the December quarter`s results reflecting only a month`s production, as the
effective date of acquisition was 1 December 2006. This compares with a full
quarter`s results for the March quarter. South Deep also aligned itself with
the Gold Fields quarter close timetable which effectively reduced the quarter
by seven mining shifts.
Total cash costs increased from R133,724 to R141,017 per kilogram for the March
quarter due to the inclusion of R35 million (US$5 million) gold inventory
charge from the sale of 246 kilograms held over from the previous quarter at a
cost of R142,300 per kilogram and development and insurance costs, totaling an
additional R15 million (US$2 million). The operating profit increased from R6
million (US$1 million) to R11 million (US$2 million) quarter on quarter.
The Main shaft at the Twins complex was re-commissioned by mid- January 2007,
and hoisting operations were restored following the shaft accident of 4 May
2006. The re-commissioning of the Twin shaft complex necessitated a logistics
re-organisation by moving people and ore flow away from the South shaft complex
which did affect the production build-up. Staffing in the trackless section of
the mine has been problematic where high turnover rates are being experienced.
The labour market for these skills in South Africa is highly competitive and
adjustments will be made to retain such staff.
Milled tonnage increased from 184,000 tons to 483,000 tons.
Underground volumes tripled to 309,000 tons and the balance was made up of
surface stockpiles.
Underground yields were marginally lower than anticipated at 6.1 grams per ton
due to higher than forecast mining volumes from the marginal 1 West corridor.
Capital expenditure for the quarter amounted to R78 million (US$11 million) and
includes the Twin shaft ventilation deepening project, which has progressed
well during the quarter, being on time and well within budget. The 94 level
refrigeration project is lagging due to civil engineering skills shortages
experienced by the contractor. This bottleneck has since been addressed. The
below 95 level capital development project will be presented for Board approval
during the quarter and the award and mobilisation is anticipated to commence in
the early part of the September quarter.
Increased mining volumes are being experienced in the June quarter, with
operational focus on commissioning the 95 1 west workshop which will mark the
commencement of the Long Hole Stoping programme. This programme once fully
operational will provide an additional 150,000 tons per quarter of marginal
Elsburg ore, which will supplement the current ore production. As previously
forecast, this level of production should be achieved by the end of the June
quarter. In light of this, gold production, is anticipated to reach above
70,000 ounces in the June quarter at a marginally reduced cost.
The integration of South Deep into Gold Fields is well advanced,
with various projects underway to exploit identified synergies. The priority is
the adoption of the Gold Fields commercial service division as the primary
service provider.
Internati onal Operations
Ghana
Tarkwa
March December
2007 2006
Gold produced - 000`ozs 174.3 178.8
Yield - Heap leach - g/t 0.7 0.8
- CIL plant - g/t 1.4 1.6
- Combined - g/t 0.9 1.0
Total cash costs - US$/oz 356 323
For the quarter Tarkwa processed 5.89 million tons and produced 174,300 ounces
of gold at an average yield of 0.9 grams per ton. This compares with 5.59
million tons processed producing 178,800 ounces at a yield of 1.0 gram per ton
in the December quarter. The yield from the CIL reduced from 1.6 grams per ton
in December quarter to 1.4 grams per ton in March quarter, whilst Heap Leach
yield decreased from 0.8 to 0.7 grams per ton. The decrease was due to lower
grade tons treated from mining and from stockpiles. Both heap leach and CIL
tonnages treated increased in the March quarter.
Total tons mined, including capital stripping, increased from 26.0 million tons
in the December quarter to 28.7 million tons for the March quarter. Ore tons
moved for the March quarter at 5.65 million tons compared with 5.23 million
tons in the December quarter. The overall strip ratio for the quarter was 4.09,
marginally higher than the 3.96 in the December quarter.
Total feed to the heap leach sections was 4.38 million tons at a head grade of
1.0 gram per ton compared with 4.24 million tons at a head grade of 1.13 grams
per ton for the December quarter. The lower head grade was due to the lower
grade pits mined during this quarter and treatment of low grade stockpiles
additional to the run of mine. There was a net gold-in-process decrease of
1,100 ounces. Overall, the heap leach sections produced 103,700 ounces for the
quarter compared with the 110,500 ounces achieved in December.
The total feed to the CIL plant was higher than the previous quarter at a
record 1.52 million tons versus the previous quarters 1.35 million tons. The
CIL plant produced 70,600 ounces in the March quarter compared with 68,300
ounces in the December quarter.
Operating costs, including gold-in-process adjustments, at US$62 million (R446
million) were US$4 million higher than the previous quarter and reflect a US$2
million increase in power costs equivalent to US$11 per ounce, a US$1 million
increase in gold-in- process adjustment and a US$1 million increase in
consumables, especially cyanide and fuel costs, which added a further US$10 per
ounce.
Operating cost per ton processed was US$11.96 as against US$11.02 in the
December quarter. Total cash costs at US$356 per ounce compared with the
December quarter`s US$323 per ounce. This increase in the cash cost was
primarily because of the impact of the higher power cost compounded by the
lower gold output.
Operating profit at US$52 million (R371 million) was similar to the December
quarter, with the higher gold price offsetting the increased cost and lower
gold production.
Capital expenditure was US$21 million (R152 million) for the quarter compared
with US$26 million (R189 million) in the December quarter. The main areas of
capital expenditure were capital waste mining on the Teberebie cutback,
expenditure on initial work carried out on the CIL expansion project and
expenditure on the joint power project. Gold production for the June quarter is
expected to be marginally lower than the current quarter and unit costs will
remain under pressure on the back of the continued cost of on-mine power
generation.
Damang
March December
2007 2006
Gold produced - 000`ozs 48.5 51.6
Yield - g/t 1.1 1.2
Total cash costs - US$/oz 454 447
Gold production for the March quarter was 48,500 ounces, which was 6 per cent
down on the December quarter`s 51,600 ounces. This was due to a decrease in
high-grade fresh ore tonnages mined and processed, which in turn increased the
volume of lower grade B3 stockpile material that was fed to the plant. The
decrease in high-grade fresh tons mined was due to mining less tons from the
nearly depleted J2SW pit and the high strip ratio areas mined at the Damang pit
cutback.
The mill throughput for the quarter was 1.38 million tons, 4 per cent up on
last quarter`s 1.33 million tons processed. This increase was due to good
fragmentation of the material treated.
Total tons mined, including capital stripping, was 8.1 million tons compared
with 8.3 million tons in the previous quarter. Ore mined was 811,000 tons
compared with 856,000 tons during the previous quarter. The average mined grade
decreased from 1.41 to 1.28 grams per ton. This decrease was due to the
reduction in high- grade fresh ore mined. The overall strip ratio increased to
9.04, from 8.67 the previous quarter.
Operating costs, including gold-in-process movements were in line with the
previous quarter. The cost per ton milled was US$16.11 as against US$16.98 in
the December quarter. Total cash costs increased from US$447 per ounce to
US$454 per ounce due to the lower gold output. Operating profit for the quarter
at US$9 million (R65 million) was similar to the December quarter.
Capital expenditure for the quarter amounted to US$9 million (R65 million)
compared with US$7 million (R53 million) in the December quarter. The majority
of this expenditure was incurred in mining the Damang pit-cutback and the
raising of tailings storage facility embankments. Construction of a seventh CIL
tank to increase the metallurgical recovery progressed during the quarter, with
civil works for the foundation completed. The project is expected to be
commissioned during the second quarter of financial 2008.
Gold production is expected to be slightly lower in the June quarter.
Cost pressures will continue as a result of the continued cost of on- mine
power generation.
Venezuela
Choco 10
March December
2007 2006
Gold produced - 000`ozs 8.2 22.8
Yield - g/t 1.3 2.0
Total cash costs - US$/oz 575 426
Gold production for the quarter decreased from 22,800 ounces to 8,200 ounces as
a consequence of insufficient water to operate the plant at full capacity. The
mining operations focused on additional waste mining in preparation for future
ore requirements resulting in lower grade areas and stockpiles being milled.
Total mill throughput for the quarter decreased from 357,000 tons to 191,000
tons due to the water shortages. This problem was the most severe during the
months of February and March, when 457 and 454 operating hours were lost
respectively. Encouragingly when water was available, there were periods when
the mill throughput rates were slightly above nameplate capacity.
Mining continued in the Pisolita, Coacia and the Rosika open pits during the
quarter, with total material mined of 1.7 million tons versus 1.4 million tons
in the December quarter. Ore mined reduced from 347,000 tons in the previous
quarter to 194,000 tons in the March quarter with an increased focus on waste
mining during the period of reduced milling operations. Overall mining
quantities were lower than plan mainly as a result of lower than expected
machinery availability. The grade mined for the quarter was 1.6 grams per ton
compared with 1.9 grams per ton last quarter.
Operating costs, including gold-in-process movements, amounted to US$6 million
(R45 million) compared with US$11 million (R78 million) last quarter, in line
with the decrease in production. Total cash costs increased from US$426 per
ounce to US$575 per ounce driven by the low level of production. An operating
loss of US$1 million (R6 million) was realised compared with a profit of US$3
million (R23 million) in the December quarter.
At the end of the quarter there was still no water in the mine`s main
reservoir. The permitting process to extract water from the Yuruari River is
still ongoing. The water exploration programme was significantly advanced
during the quarter, resulting in five boreholes being installed to provide
water; although this still does not represent the mine`s full requirements. Two
additional targets from the original programme remain to be tested and this
work is planned for the June quarter. Discussions with various external parties
are continuing to finalise the complex permitting process, but progress is
slow. Work is continuing on other internal and external water supply and
management projects.
Capital expenditure amounted to US$2 million (R17 million) for the quarter
compared with US$5 million (R38 million) in the December quarter. The resource
definition exploration programme on Choco 10 continued to return numerous
significant intersects during the quarter, defining high-grade extensions to
mineralisation along strike and down-dip at the VBK deposit.
Gold production for the June quarter is expected to be similar to the March
quarter unless an improvement in the mine`s water supply situation improves.
Collective bargaining with the union representing the workers commenced during
the March quarter and is ongoing.
Australia
St Ives
March December
2007 2006
Gold produced - 000`ozs 119.4 124.6
Yield - Heap leach - g/t 0.5 0.5
- Milling - g/t 2.9 3.1
- Combined - g/t 2.1 2.2
Total cash costs - A$/oz 511 493
- US$/oz 401 378
Gold production for the quarter was 119,400 ounces, 4 per cent down on the last
quarter`s 124,600 ounces. The reduction was primarily due to the Lefroy mill
processing lower grade stockpiled Mars ore and reduced fresh ore tons available
from the open pits, due to the closure of Thunderer and West Revenge pits. Open
pit and underground ores were stockpiled at the end of the quarter due to
maintenance to the Lefroy mill primary crusher. The quarter`s gold production
from the Lefroy mill was 110,700 ounces compared with 117,000 ounces
previously. The increase in heap leach production from 7,600 ounces in the
December quarter to 8,700 ounces this quarter was a result of on-going recovery
of gold from slow leaching Mars ore stacked previously.
During the quarter 2.39 million bank cubic metres (BCM`s) of ore and waste were
mined from the open pit operations compared with 2.37 million BCM in the
previous quarter. The average strip ratio increased to 8.5 compared with 4.7
previously with the commencement of the North Revenge pit and on-going
development of the Bahama pit. Open pit operations produced 0.7
million tons of ore for the quarter compared with 1.0 million tons for
the previous quarter. The open pit ore grade was maintained at 2.3
grams per ton. The majority of ore was mined from the Thunderer
and Delta North pits, although the North Revenge and the
Leviathan pits contributed to production at the end of the quarter.
Underground operations produced 317,000 tons of ore at 5.5 grams per ton for
the quarter compared with 341,100 tons at 5.2 grams per ton in the previous
quarter. The majority of this decrease was from a reduction at Leviathan which
mined 178,000 tons at 5.3 grams per ton this quarter compared with 209,000 tons
at 5.1 grams per ton.
Operating costs, including gold-in-process movements, increased to A$63 million
(R358 million) from A$62 million (R348 million) in the previous quarter,
reflecting lower direct mining costs in the open pits which was more than
offset by the release of gold-in- process from previously stacked Mars ore from
the heap leach operation. A price participation royalty calculated at 10 per
cent of the average quarterly gold price above A$600 per ounce was payable
during the quarter and amounted to A$3 million (R17 million), which was similar
to the previous quarter. Total cash costs increased to A$511 per ounce (US$401
per ounce) for the quarter from A$493 per ounce (US$378 per ounce) in the
December quarter.
Operating profit was similar at A$36 million (R202 million), the
higher gold price offsetting the lower gold production.
Capital expenditure for the March quarter was A$26 million (R148 million)
compared with A$22 million (R126 million) in the December quarter. Mine
development capital was higher than the previous quarter at A$16 million (R91
million) compared with A$14 million (R81 million) in the previous quarter with
the continuation of development at the Bahama pit and commencement of
development at the North Revenge pit. Capital works was double the previous
quarter at A$2 million (R14 million), due to the construction of the North
Orchin emergency tailings disposal system and the installation of an
agglomeration drum at the heap leach circuit. Capitalised exploration
expenditure was A$7 million (R40 million) for the quarter, compared with A$6
million (R34 million) in the preceding quarter.
Gold production for the June quarter is expected to decrease slightly with a
corresponding increase in unit costs since both the Lefroy mill and heap leach
facility have planned downtime events during the quarter for a major SAG mill
re-line and commissioning of an agglomeration drum respectively.
Agnew
March December
2007 2006
Gold produced - 000`ozs 46.6 53.0
Yield - g/t 4.5 5.2
Total cash costs - A$/oz 426 338
- US$/oz 334 260
Gold production for the March quarter was 46,600 ounces, which was 12 per cent
down on the December quarter`s 53,000 ounces. This was due to lower yields at
4.5 grams per ton compared with 5.2 grams per ton the previous quarter. This
was mainly on the back of lower grades from the high grade Kim lode, where
sequencing for good geotechnical management constrained mining to lower
grade portions of the orebody. In addition, some production from Kim was
affected by higher than normal dilution associated with mining adjacent to
the Kim fault between the Kim and Kim South lodes. The grade at the Kim
lode was down from 16.4 grams per ton to 10.4 grams per ton as a result.
The overall underground operations at Waroonga produced 98,000 tons of ore
at 9.7 grams per ton, compared with 100,000 tons at 13.1 grams per ton in
the December quarter.
Open pit mining at Songvang produced 450,000 tons of ore, significantly up on
the 344,000 tons produced during the December quarter and the average grade
increased from 1.9 to 2.2 grams per ton. The total volume of ore and waste
mined from the pit was 0.72 million BCM compared with 1.2 million BCM during
the previous quarter, decreasing the average strip ratio from 9.1 to 3.7 which
reflects the reduced working areas available as the pit deepens. Operating
costs, including gold-in-process movements, were A$17 million (R97 million) for
the March quarter, some A$1 million above the December quarter. Costs increased
by A$2 million due to the completion of the capitalised waste pre-strip at
Songvang and the resultant expensing of internal waste as from November 2006,
combined with an increase of A$1 million due to increased production at
Songvang. This was partially offset by gold-in- process credits as a result of
increased Songvang stocks. Total cash costs increased to A$426 per ounce
(US$334 per ounce) for the quarter compared with A$338 per ounce (US$260 per
ounce) in the preceding quarter, largely as a result of decreased gold
production. Operating profit decreased to A$22 million (R122 million) compared
with A$27 million (R151 million) quarter on quarter.
Capital expenditure for the March quarter was A$6 million (R33 million)
compared with A$10 million (R56 million) in the December quarter. The majority
of this decrease was due to a reduction of pre-strip expenditure at Songvang,
which was completed in the previous quarter. Capitalised exploration
expenditure was maintained at A$2 million (R11 million).
Gold produced during the June quarter is expected to be similar to the March
quarter. Cash costs are expected to rise in line with Songvang`s associated
waste chargeback costs.
Quarter ended 3 1 March 200 7 compared
with quarter ended 3 1 March 200 6
Attributable gold production decreased 3 per cent from 1,023,000 ounces for the
quarter ended 31 March 2006 to 989,000 ounces produced in the quarter ended 31
March 2007. A decrease was seen at most operations, partially offset by an
increase from Choco 10 of 2,700 attributable ounces, as this operation only
included one months results this time last year, and the newly acquired South
Deep, which produced 66,000 attributable ounces this quarter.
The South African operations, excluding South Deep, produced 590,000 ounces,
compared with 646,000 ounces produced in the March 2006 quarter. The decrease
at Driefontein and Beatrix amounted to 33,000 and 36,000 ounces respectively
due to lower grades, partially offset by an increase at Kloof of 13,000 ounces
due to higher underground tons processed.
At the international operations, excluding Choco 10, production decreased by
47,000 attributable ounces to 333,000 attributable ounces. Tarkwa and Damang
decreased by 13,000 and 10,000 attributable ounces respectively. St Ives and
Agnew decreased by 15,000 ounces and 9,000 ounces respectively. These decreases
resulted from lower grades achieved across the operations.
Revenue increased by 34 per cent in rand terms (increased 15 per cent in US
dollar terms) from R3,734 million (US$602 million) to R4,994 million (US$693
million). The higher gold price of R151,184 per kilogram (US$652 per ounce)
compared with R109,500 per kilogram (US$555 per ounce), more than offset the
lower production.
Operating costs increased from R2,384 million (US$386 million) to R3,165
million (US$439 million), an increase of 33 per cent. This increase includes
R303 million (US$42 million) at South Deep and an additional R50 million (US$7
million) at Choco 10. The weaker rand also contributed to the increase in costs
as translating costs at the international operations into South African rand
accounted for R168 million of this increase. Exchange rates weakened from an
average of US$1 = R6.14 to US$1 = R7.21, or 17 per cent and from A$1 = R4.56 to
A$1 = R5.66, or 24 per cent quarter on quarter. The balance of the operating
cost increase of R260 million (US$36 million) includes R193 million at the
South African operations, with the balance of R67 million at the international
operations. Total cash costs for the Group increased 16 per cent from US$344 to
US$399 per ounce.
At the South African operations operating costs excluding South Deep increased
by 13 per cent to R1,709 million for the March 2007 quarter compared with
R1,516 million for the same period the previous year. This was due to above
inflation wage increases, an increase in equipping and secondary support, an
increase in commodity prices, particularly steel, copper, fuel and food, as
well as normal inflationary pressures. Unit cash costs excluding South Deep
increased from R72,725 to R88,772 per kilogram. At the international operations
unit cash costs increased by 24 per cent from US$310 per ounce to US$383 per
ounce. This was due to the combined effect of lower gold outputs as a result of
lower grades, the increased cost of inputs driven by the commodities boom,
increased fleet maintenance costs at Tarkwa and increased power costs in Ghana
due to on-mine power generation.
Operating profit at R1,840 million (US$255 million), compared with R1,377
million (US$221 million) in the previous year, with the group benefiting from
the higher gold price in all currencies.
Net earnings were R370 million (US$52 million) compared with R504 million
(US$80 million) in the March 2006 quarter. This decrease in earnings was
largely due to losses resulting from the South Deep acquisition. This was
evidenced by the earnings excluding gains and losses on foreign exchange and
exceptional items for the March 2007 quarter, which amounted to R512 million
(US$71 million) compared with R397 million (US$63 million) in the March 2006
quarter.
Capital and development
projects
Cerro Corona
During the quarter community relationships remained stable on the Cerro Corona
site. Proactive management of community and social issues remained a primary
focus in all construction related activities, with a particular emphasis on
employment and community contracting. Since October 2006, the fleet of locally
hired construction equipment working at the site has doubled in size, with
performance based opportunities for all local contractors being provided.
Community stakeholder participation remains high with over 50 local contractors
and suppliers and almost 900 people from local communities working at site.
There were no significant environmental incidents during the period. Sediment
control has been a particular challenge due to above-average rainfall over
recent months, coinciding with significant top soil stripping activity. Safety
performance on the Project remains good, with only one lost time injury
occurring in the financial year.
Surface mining performance over the quarter was below expectations primarily
due to poor weather conditions, rain and mist, but also due to shortages of
road construction materials and poor haul truck availability. A total of 2.35
million total tons was mined in the quarter (December 2.5 million tons) of
which, some 60 per cent was waste and the majority of the balance oxide ore for
stockpiling. Very limited sulphide ore mining has been undertaken to reduce the
risk of oxidation of these ores. Waste and oxide mining has now exposed
mineable sulphide ore blocks which will be left until sulphide ore production
commences with commissioning of the concentrator. Mining progress should not
affect project start up. In the near term, the mining fleet will focus on
production of construction materials from both the surface mine and quarries on
the project site. These materials are required for haul road and tailings
embankment construction. Unit mining cost performance, at US$1.55 per ton was
in line with expectation.
By quarter end the bulk of the engineering had been completed, while on the
procurement front, the majority of the major construction packages have now
been placed or are in final recommendation stage.
Design revisions have focused on simplifying the design of the tailings
embankment to reduce cost and simplify construction of this large structure.
This follows a rigorous internal and external review process including an
Independent Geotechnical and Tailing Dam Review Board (IGTRB), recognizing the
scale and complexity of the tailings management facility. Engineering of these
aspects remains on track with final bid documents being released for bidding
and adjudication.
During the quarter earth moving activity on the project focused on top soil
stripping of the tailings embankment footprint and haul road construction. The
plant site was turned over to the civil, structural and mechanical contractor
in early January and construction activities here have centered on bulk
concrete works for major foundations.
Completion of construction is forecast for early January 2008, and the project
is still expected to commence ore treatment in that month, with shipment of
concentrates commencing in that quarter. The greatest schedule risk remains
delays in completion of the tailing embankment.
During the quarter cumulative project commitments reached US$220 million
(December US$172 million) while cash expenditure in the quarter was US$46
million (December US$46 million). The total capital construction cost for the
Project remains forecast at US$343 million.
Arctic Platinum
North American Palladium Finland OY ("NAPF") and Gold Fields exploration
technical staff continued to review drilling results and processing options
during the quarter. The third party engineering firm retained by NAPF issued a
preliminary Scoping Study for review. Gold Fields has commented on this study
and expects a final report by the fourth quarter of financial 2007.
Exploration and corporate development
Gold Fields completed drilling on five projects during the quarter on its
greenfield exploration sites. At the Essakane project in Burkina Faso (GFI
earning 60 per cent), a new resource estimate was completed and the commercial
and operating agreements executed with Orezone Resources Inc (TSX: "OZN").
Resources reporting within a US$650 per ounce pit shell at a 1.0 gram per ton
cut-off are estimated at 43 million tons at 2.4 grams per ton gold for a total
of 3.1 million ounces. More than 80 per cent of this inventory is classed as
Indicated Resource. The Bankable Feasibility Study is underway and completion
is expected in the September 2007 quarter.
On the Sankarani project (GFI earning 65 per cent) in south- western Mali,
presently operated by partner Glencar Mining plc (AIM: "GEX"), follow-up
diamond drilling was completed on the Kabaya South target during the quarter.
At the 80 per cent owned Kisenge project in the southern DRC most results for
the previously completed aircore and diamond drilling programme were received
during the quarter. While these results do not support conclusively the
association of gold mineralization with conglomerates as at Tarkwa in Ghana,
there does appear to be a closer analogue with the Damang Mine. Plans are near
completion for finalising a significant drilling programme during the remainder
of the year at Kisenge.
At the Central Victoria project in Australia, aircore and diamond drilling
continued to define the newly discovered parallel trend located to the east of
Lockington trend. Results received to date support two potentially significant
mineralized trends but we have yet to attain consistent intersections defining
an underground mineable resource. The programs are still in the early stages of
evaluating these mineralised trends discovered under shallow cover. At the New
South Wales generative programme being completed with a subsidiary company
owned by GeoInformatics Exploration Inc (TSX Venture: "GXL"), additional
tenements were acquired.
In China, the previously announced strategic alliance with Sino Gold Limited
(ASX: "SGX") included the transfer of properties and Gold Fields staff as well
as progressing negotiations on the definitive operating agreement. Gold Fields
currently owns 17.3 per cent of SGX subsequent to their successful secondary
listing on the Hong Kong Stock Exchange in March.
A 2,500 meter reverse circulation drill programme was completed at the 100 per
cent owned Isla Project in northern Chile evaluating the high sulfidation -
epithermal Au potential of this old native sulfur mineral occurrence.
Results did not yield any economic intersections and the project will be
relinquished.
Diamond drilling continued on the Las Tres Palmas project in the Dominican
Republic with partner GoldQuest Mining Corp (TSX Venture: "GQC"). Results
received to date appear to have defined the northern limit of the Las Tres
Palmas system. An additional 500 meters of diamond drilling was completed on
the Resbalosa target during the quarter.
Corporate
Gold Fields successfully completes capital raising On 31 January 2007 the
capital raising announced earlier, of 79 million new shares in Gold Fields, was
completed. On 2 February, JPMorgan and Citigroup acting as joint global
co-ordinators and joint bookrunners in the capital raising exercised in-full
the over- allotment option granted by Gold Fields. Gold Fields issued an
additional 11.85 million new ordinary shares at R113.50 per share to cover this
allotment, this being the offer price achieved in the Capital Raising.
Following the exercise of the over-allotment option, the total number of new
ordinary shares issued in terms of the capital raising was 90.85 million. This
represents approximately 16.2 per cent of Gold Fields` issued ordinary share
capital prior to the capital raising. Based on the offer price of R113.50 per
share, the gross proceeds received by Gold Fields amounted to approximately
R10.3 billion (US$1.4 billion). These proceeds were used to repay debt incurred
for purposes of Gold Fields` acquisition of Barrick Gold Corporation`s 50 per
cent interest in the South Deep asset and its rights under the joint venture
agreement with Western Areas.
Close out of Western Areas gold derivative structure The Western Areas gold
derivative structure was closed out on 24 January 2007, for settlement 30
January 2007, by purchasing the net delta of 1.005 million ounces of gold at an
average price of US$622.14. The total settlement cost, which includes the
deferred premium, was US$528 million. The total settlement cost was funded by
drawing down under the bridge loan facility arranged by JP Morgan and Citibank.
Acquisition of remaining shares of Western Areas
Limited completed
On 10 April 2007 the successful implementation of Section 440K of the Companies
Act and the consequent acquisition by Gold Fields of all the remaining Western
Areas Limited shares not already held by Gold Fields was announced.
As a result Gold Fields now owns 100 per cent of the share capital of Western
Areas, whose listing on the JSE was terminated on 30 March 2007. As a
consequence, the existing board of Western Areas will be replaced by a board of
Gold Fields nominees.
US$750 million syndicated revolving credit facility
ABN AMRO and Barclays Capital have been mandated as Mandated Lead Arranges and
Joint Bookrunners for a US$750 million syndicated dual tranche revolving credit
facility. The syndication was launched on 16 April 2007.
The Facility will be used by Gold Fields for refinancing of its existing debt
and for general corporate funding purposes. It is structured as a five year
revolving credit facility of US$500 million and a 364 day facility of US$250
million with bullet repayments.
Gill Marcus joins the Gold Fields Board
The Board is pleased to announce that Ms Gill Marcus has been appointed as a
non-executive director of the company with effect from 14 February 2007.
Ms Gill Marcus has been the executive chairperson of Western Areas Limited from
17 November 2005 to 31 March 2007 and chairperson of the Executive Committee
and member of the Placer Dome Western Areas JV Board. She was a member of the
ANC National Executive Committee from 1991 to 1999 and Member of Parliament
from 1994 to 1999. Ms Marcus served as Deputy Minister of Finance from 1996 to
1999. She served as Deputy
Governor of the South African Reserve Bank from 1999 to 2004.
She is Professor: Policy, Leadership and Gender Studies at the Gordon Institute
of Business Science, board member of Bidvest Limited and the International
Marketing Council, and also serves on the Advisory Board of the Auditor
General. Ms Marcus is also Chairperson elect of ABSA Group and ABSA bank. The
appointment will be effective as from 1 July 2007.
New Executive Vice President for International
Operations
We are pleased to announce the appointment of Glenn Baldwin who has agreed to
head up the international operations. This came about as a result of Terence
Goodlace`s move from the position of head of international operations to head
up the South African operations as announced on 9 January 2007.
Glenn, who has considerable experience in the mining industry in South Africa
and abroad, joined Gold Fields on 1 April 2007, and is based in Johannesburg.
Change in accounting policy
Capitalisation of costs relating to Ore Reserve Development (ORD)
On 1 July 2006, the Group changed its accounting policy on Ore Reserve
Development ("ORD") costs. These costs are now capitalised and amortised over
the period the Group expects to consume the economic benefits relating to ORD.
Previously, ORD costs were expensed. The change in accounting policy has been
applied retrospectively for the earliest comparative period presented in terms
of IAS8 Accounting policies, changes in accounting estimates and errors.
ORD is all off-reef development that allows access to reserves that are
economically recoverable in the future. ORD includes, but is not limited to,
crosscuts, footwalls, return airways and box holes. The cost of developing
access ways and other infrastructure creates for the Group probable economic
benefits that, in combination with other assets at its mining operations,
contribute directly to the future cash inflows of the Group.
The change in accounting policy will therefore allow for improved financial
reporting and will align the Group`s policy with those of its global industry
peers.
The effect of the change in accounting policy for the last 3 years is an after
tax net credit to earnings of:
F2006 - R81.5 million
F2005 - R100.7 million
F2004 - R363.9 million
The impact of the change in accounting policy for the March 2007 quarter, is a
net credit to earnings of R75 million. The net credit to earnings in the
December 2006 quarter amounted to R40 million. For the March 2006 quarter the
impact was a net credit to earnings of R21 million.
The corresponding entry for the above adjustments was to increase property,
plant and equipment and deferred tax liabilities.
Outlook
Gold production for the June quarter is estimated at just over 1 million
attributable ounces. Cash costs should reduce in line with the increased
production.
Basis of accounting
The unaudited results for the quarter and nine months have been prepared on the
International Financial Reporting Standards (IFRS) basis. The detailed
financial, operational and development results for the March 2007 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
other than the change in accounting policy referred to.
I.D. Cockerill
Chief Executive Officer
3 May 2007
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand Quarter
Restated
March December March
2007 2006 2006
Revenue 4,994.2 4,854.4 3,734.4
Operating costs 3,165.2 2,974.7 2,384.2
Gold inventory change (11.1) (89.7) (26.4)
Operating profit 1,840.1 1,969.4 1,376.6
Amortisation and depreciation 704.3 745.1 542.0
Net operating profit 1,135.8 1,224.3 834.6
Net interest (paid)/received (111.9) (26.6) (6.9)
(Loss)/gain on foreign exchange (379.7) 263.6 80.4
Loss on financial instruments (35.2) (19.2) (20.2)
Other expenses (26.8) (63.9) (83.5)
Exploration (75.6) (64.9) (33.6)
Profit before tax and exceptional items 506.6 1,313.3 770.8
Exceptional gain 192.0 7.8 53.2
Profit before taxation 698.6 1,321.1 824.0
Mining and income taxation 261.9 480.2 234.6
- Normal taxation 232.5 259.4 156.1
- Deferred taxation 29.4 220.8 78.5
Net profit 436.7 840.9 589.4
Attributable to:
- Ordinary shareholders 370.4 766.8 503.7
- Minority shareholders 66.3 74.1 85.7
Exceptional items:
Profit on sale of investments 182.3 4.7 28.5
Profit on sale of assets 10.0 2.8 24.5
Other (0.3) 0.3 0.2
Total exceptional items 192.0 7.8 53.2
Taxation (49.2) (2.7) (14.1)
Net exceptional items after tax and
minorities 142.8 5.1 39.1
Net earnings 370.4 766.8 503.7
Net earnings per share (cents) 60 148 102
Diluted earnings per share (cents) 57 137 94
Headline earnings 227.6 761.7 466.6
Headline earnings per share (cents) 37 137 94
Net earnings excluding gains and losses
on foreign exchange and exceptional items 512.0 563.6 396.7
Net earnings per share excluding gains
and losses on foreign exchange and
exceptional items (cents) 83 108 80
Gold sold - managed kg 33,034 33,598 34,104
Gold price received R/kg 151,184 144,485 109,500
Total cash costs R/kg 92,490 83,707 67,831
South African Rand Nine months to
Restated
March March
2007 2006
Revenue 14,580.5 10,235.7
Operating costs 8,903.5 7,007.2
Gold inventory change (119.1) (36.1)
Operating profit 5,796.1 3,264.6
Amortisation and depreciation 2,130.1 1,575.9
Net operating profit 3,666.0 1,688.7
Net interest (paid)/received (121.8) 10.7
(Loss)/gain on foreign exchange (119.0) 80.5
Loss on financial instruments (63.8) (47.8)
Other expenses (119.4) (131.3)
Exploration (206.1) (153.9)
Profit before tax and exceptional items 3,035.9 1,446.9
Exceptional gain 208.5 57.7
Profit before taxation 3,244.4 1,504.6
Mining and income taxation 1,206.3 503.6
- Normal taxation 743.6 351.3
- Deferred taxation 462.7 152.3
Net profit 2,038.1 1,001.0
Attributable to:
- Ordinary shareholders 1,835.0 852.2
- Minority shareholders 203.1 148.8
Exceptional items:
Profit on sale of investments 187.4 30.3
Profit on sale of assets 21.1 24.5
Other - 2.9
Total exceptional items 208.5 57.7
Taxation (55.0) (15.3)
Net exceptional items after tax and minorities 153.5 42.4
Net earnings 1,835.0 852.2
Net earnings per share (cents) 337 173
Diluted earnings per share (cents) 314 164
Headline earnings 1,681.5 811.8
Headline earnings per share (cents) 309 164
Net earnings excluding gains and losses
on foreign exchange and exceptional items 1,810.0 762.4
Net earnings per share excluding gains
and losses on foreign exchange and
exceptional items (cents) 333 154
Gold sold - managed kg 99,947 101,457
Gold price received R/kg 145,882 100,887
Total cash costs R/kg 85,328 67,026
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
United States Dollars Quarter
Restated
March December March
2007 2006 2006
Revenue 692.6 657.6 602.2
Operating costs 438.9 403.4 385.8
Gold inventory change (1.6) (12.3) (4.1)
Operating profit 255.3 266.5 220.5
Amortisation and depreciation 97.7 101.0 87.6
Net operating profit 157.6 165.5 132.9
Net interest (paid)/received (15.4) (3.8) (1.0)
(Loss)/gain on foreign exchange (52.5) 36.4 12.6
Loss on financial instruments (4.8) (2.7) (3.3)
Other expenses (3.7) (8.7) (13.2)
Exploration (10.5) (8.7) (5.5)
Profit before tax and exceptional items 70.7 178.0 122.5
Exceptional gain 26.5 1.1 8.3
Profit before taxation 97.2 179.1 130.8
Mining and income taxation 36.4 65.0 37.4
- Normal taxation 32.2 35.1 25.0
- Deferred taxation 4.2 29.9 12.4
Net profit 60.8 114.1 93.4
Attributable to:
- Ordinary shareholders 51.6 104.0 79.8
- Minority shareholders 9.2 10.1 13.6
Exceptional items:
Profit on sale of investments 25.2 0.7 4.4
Profit on sale of assets 1.4 0.3 3.8
Other (0.1) 0.1 0.1
Total exceptional items 26.5 1.1 8.3
Taxation (6.8) (0.4) (2.1)
Net exceptional items after tax and
minorities 19.7 0.7 6.2
Net earnings 51.6 104.0 79.8
Net earnings per share (cents) 8 20 16
Diluted earnings per share (cents) 7 19 15
Headline earnings 31.9 103.3 73.9
Headline earnings per share (cents) 5 20 15
Net earnings excluding gains and losses
on foreign exchange and exceptional items 71.0 76.0 63.0
Net earnings per share excluding gains
and losses on foreign exchange and
exceptional items (cents) 11 15 13
South African rand/United States dollar
conversion rate 7.21 7.38 6.14
South African rand/Australian dollar
conversion rate 5.66 5.66 4.56
Gold sold - managed ozs(000) 1,062 1,080 1,096
Gold price received $/oz 652 609 555
Total cash costs $/oz 399 353 344
United States Dollars Nine months to
Restated
March March
2007 2006
Revenue 2,016.7 1,599.3
Operating costs 1,231.5 1,094.8
Gold inventory change (16.5) (5.6)
Operating profit 801.7 510.1
Amortisation and depreciation 294.6 246.2
Net operating profit 507.1 263.9
Net interest (paid)/received (16.8) 1.7
(Loss)/gain on foreign exchange (16.5) 12.6
Loss on financial instruments (8.8) (7.5)
Other expenses (16.5) (20.5)
Exploration (28.5) (24.0)
Profit before tax and exceptional items 420.0 226.2
Exceptional gain 28.8 9.0
Profit before taxation 448.8 235.2
Mining and income taxation 166.8 78.7
- Normal taxation 102.8 54.9
- Deferred taxation 64.0 23.8
Net profit 282.0 156.5
Attributable to:
- Ordinary shareholders 253.9 133.2
- Minority shareholders 28.1 23.3
Exceptional items:
Profit on sale of investments 25.9 4.7
Profit on sale of assets 2.9 3.8
Other - 0.5
Total exceptional items 28.8 9.0
Taxation (7.6) (2.3)
Net exceptional items after tax and minorities 21.2 6.7
Net earnings 253.9 133.2
Net earnings per share (cents) 47 27
Diluted earnings per share (cents) 43 26
Headline earnings 232.7 126.8
Headline earnings per share (cents) 43 26
Net earnings excluding gains and losses
on foreign exchange and exceptional items 250.3 119.1
Net earnings per share excluding gains
and losses on foreign exchange and
exceptional items (cents) 46 24
South African rand/United States dollar conversion rate 7.23 6.40
South African rand/Australian dollar conversion rate 5.52 4.80
Gold sold - managed ozs (000) 3,213 3,261
Gold price received $/oz 628 490
Total cash costs $/oz 367 326
Balance sheet
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand
Restated
March June
2007 2006
Property, plant and equipment 45,228.7 24,069.5
Non-current assets 564.2 484.0
Investments 2,143.4 2,483.9
Current assets 5,801.4 4,351.2
- Other current assets 3,473.6 2,733.7
- Cash and deposits 2,327.8 1,617.5
Total assets 53,737.7 31,388.6
Shareholders` equity 39,211.3 19,851.5
Deferred taxation 3,341.9 5,454.7
Long-term loans 2,286.6 2,021.6
Environmental rehabilitation provisions 1,149.6 1,079.3
Post-retirement health care provisions 21.3 18.0
Current liabilities 7,727.0 2,963.5
- Other current liabilities 3,405.5 2,641.8
- Current portion of long-term loans 4,321.5 321.7
Total equity and liabilities 53,737.7 31,388.6
South African rand/US dollar conversion rate
South African rand/Australian dollar conversion rate
United States Dollars
Restated
March June
2007 2006
Property, plant and equipment 6,281.8 3,239.5
Non-current assets 78.4 65.1
Investments 297.7 334.3
Current assets 805.7 585.6
- Other current assets 482.4 367.9
- Cash and deposits 323.3 217.7
Total assets 7,463.6 4,224.5
Shareholders` equity 5,446.0 2,671.8
Deferred taxation 464.2 734.1
Long-term loans 317.6 272.1
Environmental rehabilitation provisions 159.7 145.3
Post-retirement health care provisions 3.0 2.4
Current liabilities 1,073.1 398.8
- Other current liabilities 472.9 355.5
- Current portion of long-term loans 600.2 43.3
Total equity and liabilities 7,463.6 4,224.5
South African rand/US dollar conversion rate 7.20 7.43
South African rand/Australian dollar conversion rate 5.80 5.44
Condensed statement of changes in equity
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand
Restated
March March
2007 2006
Balance at the beginning of the financial year 19,851.5 16,534.1
Effect of change in accounting policy -
capitalisation of ORD costs - 464.6
Issue of share capital 77.8 0.9
Increase in share premium 18,196.3 46.1
Marked to market valuation of listed investments 184.4 247.7
Dividends paid (1,130.9) (431.8)
Increase in share-based payment reserve 60.0 46.4
Profit attributable to ordinary shareholders 1,835.0 852.2
Profit attributable to minority shareholders 203.1 148.8
(Decrease)/increase in minority interests (100.6) 62.5
Currency translation adjustment and other 34.7 (770.5)
Balance as at the end of March 39,211.3 17,201.0
United States Dollars
Restated
March March
2007 2006
Balance at the beginning of the financial year 2,671.8 2,467.8
Effect of change in accounting policy - capitalisation
of ORD costs - 69.3
Issue of share capital 10.8 0.1
Increase in share premium 2,527.3 7.3
Marked to market valuation of listed investments 25.6 38.7
Dividends paid (157.1) (67.6)
Increase in share-based payment reserve 8.3 7.3
Profit attributable to ordinary shareholders 253.9 133.1
Profit attributable to minority shareholders 28.1 23.3
Increase/(decrease) in minority interests (11.6) 9.8
Currency translation adjustment and other 88.9 49.9
Balance as at the end of March 5,446.0 2,739.0
Reconciliation of quarterly headline earnings with net earnings
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand
Restated
March December March
2007 2006 2006
Net earnings 370.4 766.8 503.7
Profit on sale of investments (182.3) (4.7) (28.5)
Taxation effect of profit on sale of
investments 47.3 - -
Profit on sale of assets (10.0) (2.8) (24.5)
Taxation effect of profit on sale of
assets 1.9 2.7 14.1
Other after tax adjustments 0.3 (0.3) 1.8
Headline earnings 227.6 761.7 466.6
Headline earnings per share - cents 37 147 94
Based on headline earnings as given above
divided by
620,105,799 (December 2006 - 517,356,586
and March 2006 -
494,075,334) being the weighted average
number of ordinary
shares in issue for the period
United States Dollars
Restated
March December March
2007 2006 2006
Net earnings 51.6 104.0 79.8
Profit on sale of investments (25.2) (0.7) (4.4)
Taxation effect of profit on sale of
investments 6.5 - -
Profit on sale of assets (1.4) (0.3) (3.8)
Taxation effect of profit on sale of assets 0.3 0.4 2.1
Other after tax adjustments 0.1 (0.1) 0.2
Headline earnings 31.9 103.3 73.9
Headline earnings per share - cents 5 20 15
Based on headline earnings as given above
divided by
620,105,799 (December 2006 - 517,356,586
and March 2006 -
494,075,334) being the weighted average
number of ordinary
shares in issue for the period
Cash flow statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand Quarter
Restated
March December March
2007 2006 2006
Cash flows from operating activities (2,615.1) 1,381.2 1,399.7
Profit before tax and exceptional
items 506.6 1,313.3 770.8
Exceptional items 192.0 7.8 53.2
Amortisation and depreciation 704.3 745.1 542.0
Change in working capital (131.8) (320.9) 228.7
Taxation paid (177.6) (85.6) (134.9)
Settlement of Western Areas hedge (3,893.8) - -
Other non-cash items 185.2 (278.5) (60.1)
Dividends paid (585.5) - (235.0)
Ordinary shareholders (585.5) - (197.7)
Minority shareholders in subsidiaries - - (37.3)
Cash flows from investing activities (1,419.8) (10,135.8) (3,423.2)
Capital expenditure - additions (1,341.4) (1,376.0) (662.0)
Capital expenditure - proceeds on
disposal 11.0 2.9 21.9
Purchase of subsidiaries (30.9) (8,676.8) (2,631.8)
Purchase of investments (349.6) (77.5) (156.1)
Proceeds on the disposal of
investments 305.7 6.9 8.2
Environmental and post-retirement
health
care payments (14.6) (15.3) (3.4)
Cash flows from financing activities 5,500.4 9,016.4 835.8
Loans received 4,439.9 9,057.9 986.7
Loans repaid (9,035.6) - (147.5)
Minority shareholders loans repaid - (44.6) (44.0)
Shares issued 10,096.1 3.1 40.6
Net cash inflow/(outflow) 880.0 261.8 (1,422.7)
Translation adjustment 35.3 (73.2) (13.0)
Cash at beginning of period 1,412.5 1,223.9 2,937.2
Cash at end of period 2,327.8 1,412.5 1,501.5
South African Rand Nine months to
Restated
March March
2007 2006
Cash flows from operating activities 375.4 2,635.0
Profit before tax and exceptional items 3,035.9 1,446.9
Exceptional items 208.5 57.7
Amortisation and depreciation 2,130.1 1,575.9
Change in working capital (442.8) (158.1)
Taxation paid (578.0) (269.7)
Settlement of Western Areas hedge (3,893.8) -
Other non-cash items (84.5) (17.7)
Dividends paid (1,141.4) (431.8)
Ordinary shareholders (1,130.9) (394.5)
Minority shareholders in subsidiaries (10.5) (37.3)
Cash flows from investing activities (12,862.8) (4,559.2)
Capital expenditure - additions (3,905.4) (1,764.8)
Capital expenditure - proceeds on disposal 22.3 29.7
Purchase of subsidiaries (8,707.7) (2.631.8)
Purchase of investments (548.5) (195.0)
Proceeds on the disposal of investments 314.8 16.6
Environmental and post-retirement health
care payments (38.3) (13.9)
Cash flows from financing activities 14,347.9 635.6
Loans received 13,497.8 986.7
Loans repaid (9,191.2) (287.5)
Minority shareholders loans repaid (90.1) (110.6)
Shares issued 10,131.4 47.0
Net cash inflow/(outflow) 719.1 (1,720.4)
Translation adjustment (8.8) (153.1)
Cash at beginning of period 1,617.5 3,375.0
Cash at end of period 2,327.8 1,501.5
United States Dollars Quarter
Restated
March December March
2007 2006 2006
Cash flows from operating activities (358.9) 189.8 221.7
Profit before tax and exceptional
items 70.7 178.0 122.5
Exceptional items 26.5 1.1 8.3
Amortisation and depreciation 97.7 101.0 87.6
Change in working capital (18.2) (44.4) 34.6
Taxation paid (26.6) (7.4) (22.0)
Settlement of Western Areas hedge (534.6) - -
Other non-cash items 25.6 (38.5) (9.3)
Dividends paid (81.4) - (38.2)
Ordinary shareholders (81.4) - (32.4)
Minority shareholders in subsidiaries - - (5.8)
Cash flows from investing activities (198.7) (1,396.4) (554.8)
Capital expenditure - additions (186.1) (186.8) (106.6)
Capital expenditure - proceeds on
disposal 1.5 0.4 3.4
Purchase of subsidiaries (5.9) (1,198.5) (427.8)
Purchase of investments (48.4) (10.4) (24.5)
Proceeds on the disposal of investments 42.2 1.0 1.3
Environmental and post-retirement
health
care payments (2.0) (2.1) (0.6)
Cash flows from financing activities 756.0 1,261.4 129.8
Loans received 609.4 1,265.7 154.2
Loans repaid (1,249.8) 0.4 (23.4)
Minority shareholders loans repaid - (5.1) (7.3)
Shares issued 1,396.4 0.4 6.3
Net cash inflow/(outflow) 117.0 54.8 (241.5)
Translation adjustment 3.9 (13.4) 19.5
Cash at beginning of period 202.4 161.0 461.1
Cash at end of period 323.3 202.4 239.1
United States Dollars Nine months to
Restated
March March
2007 2006
Cash flows from operating activities 57.6 416.1
Profit before tax and exceptional item-s 420.0 226.1
Exceptional items 28.8 9.0
Amortisation and depreciation 294.6 246.2
Change in working capital (61.2) (24.7)
Taxation paid (78.3) (37.7)
Settlement of Western Areas hedge (534.6) -
Other non-cash items (11.7) (2.8)
Dividends paid (159.7) (67.6)
Ordinary shareholders (158.2) (61.8)
Minority shareholders in subsidiaries (1.5) (5.8)
Cash flows from investing activities (1,779.2) (729.0)
Capital expenditure - additions (540.2) (275.7)
Capital expenditure - proceeds on disposal 3.1 4.6
Purchase of subsidiaries (1,204.4) (427.8)
Purchase of investments (75.9) (30.5)
Proceeds on the disposal of investments 43.5 2.6
Environmental and post-retirement health
care payments (5.3) (2.2)
Cash flows from financing activities 1,993.6 98.8
Loans received 1,875.1 154.2
Loans repaid (1,271.3) (44.9)
Minority shareholders loans repaid (11.5) (17.8)
Shares issued 1,401.3 7.3
Net cash inflow/(outflow) 112.3 (281.7)
Translation adjustment (6.7) 17.1
Cash at beginning of period 217.7 503.7
Cash at end of period 323.3 239.1
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.
Position at end of March 2007
Western Areas Limited Gold Derivative Structure
The Western Areas Limited gold derivative structure was closed out on 24
January 2007, by purchasing the net delta of 1.005 million ounces of gold at a
total cost of US$527.8 million for settlement 30 January 2007 by drawing down
this amount under the bridge loan facility arranged by JP Morgan and Citibank.
US Dollars / Rand forward purchases
As a result of the draw down under the bridge loan facility to settle the close
out of the gold derivative structure, US dollars / Rand forward cover was
purchased during the quarter for the amount of US$550.8 million for settlement
6 August 2007, at an average forward rate of 7.3279, this cover was established
at an average spot rate of 7.1918. For accounting purposes, this forward cover
has been designated as a hedging instrument. As a result the gains and losses
on the US$550.8 million forward cover have been accounted for under (loss)/gain
on exchange.
The interest payable on the above loan was covered forward by purchasing US$7.6
million at an average rate of 7.4299 for value 30 April 2007.
Year ended 30 June 2007 2008
Forward purchases:
Amount (US Dollars) - 000`s 7,600 550,800
Average rate forward - (ZAR/US$) 7.4299 7.3279
The marked to market value of the US$550.8 million forward cover was negative by
R11.7 million (US$1.6 million). The marked to market value of the US$7.6 million
forward cover was negative by R1.5 million (US$0.2 million).
US Dollars / Rand forward purchases totaling US$30 million was closed out on 20
March 2007 at a rate of 7.4245 for value 6 June 2007, realising a profit since
inception of R8.1 million (US$1.1 million).
US Dollars / Australian Dollars call options
The US Dollars / Australian Dollars call options maturing at the end of
December 2006 was exercised and settled at an average rate of 0.7863 realising
a profit of US$0.6 million.
Diesel Hedge
On 3 July 2006, Gold Fields Ghana purchased a one year Asian style (average
monthly price) call option in respect of 58.8 million litres of diesel, settled
monthly, to protect against adverse energy price movements. The call option
resulted in a premium of US$2.5 million, paid upfront, at a strike price of
US$0.5716 per litre (US$676.20 per metric ton). This equates to US$73.89 per
barrel brent crude. The price at the end of March was US$60.60 per barrel and
US$0.4570 cents per litre respectively. The balance of the unexpired options
are given below:
2007
Year ended 30 June
Forward purchases:
Amount (litres) - 000`s 19,600
Strike price - US$/litre 0.5716
Conversion factor from US dollar per metric ton to US dollar cents per
litre = 1,183
The marked to market value of all transactions making up the position
above was a positive US$0.02 million. The value was based on an IPE Gasoil
price of US$0.4589 per litre (US$542.88 per metric ton). The value was based on
the prevailing interest rates and volatilities at the time.
Total cash costs
Gold Institute Industry Standard
All figures are in Rand millions unless otherwise stated
Total Mine
Operations
Operating costs (1) March 2007 3,165.2
December 2006 2,974.7
Financial year to date 8,903.5
Gold-in-process and March 2007 (0.8)
inventory change* December 2006 (69.4)
Financial year to date (83.5)
Less: March 2007 8.8
Rehabilitation costs December 2006 8.9
Financial year to date 26.4
Production taxes March 2007 2.6
December 2006 6.5
Financial year to date 16.3
General and admin March 2007 139.8
December 2006 132.8
Financial year to date 395.7
Exploration costs March 2007 12.9
December 2006 7.8
Financial year to date 29.5
Cash operating costs March 2007 3,000.3
December 2006 2,749.3
Financial year to date 8,352.1
Plus: March 2007 2.6
Production taxes December 2006 6.5
Financial year to date 16.3
Royalties March 2007 52.4
December 2006 56.6
Financial year to date 159.9
TOTAL CASH COSTS(2) March 2007 3,055.3
December 2006 2,812.4
Financial year to date 8,528.3
Plus: March 2007 638.3
Amortisation* December 2006 690.0
Financial year to date 1,972.1
Rehabilitation March 2007 8.8
December 2006 8.9
Financial year to date 26.4
March 2007 3,702.4
TOTAL PRODUCTION
COSTS(3) December 2006 3,511.3
Financial year to date 10,526.8
Gold sold March 2007 1,062.1
- thousand ounces December 2006 1,080.2
Financial year to date 3,213.4
TOTAL CASH COSTS March 2007 399
- US$/oz December 2006 353
Financial year to date 367
TOTAL CASH COSTS March 2007 92,490
- R/kg December 2006 83,707
Financial year to date 85,328
TOTAL PRODUCTION March 2007 483
COSTS December 2006 440
- US$/oz Financial year to date 453
South African Operations
Total Driefontein Kloof
Operating costs (1) March 2007 2,012.0 677.3 643.5
December 2006 1,794.7 660.5 629.1
Financial year to date 5,450.7 1,987.8 1,888.1
Gold-in-process and March 2007 35.0 - -
inventory change* December 2006 (21.8) - -
Financial year to date 13.2 - -
Less: March 2007 6.4 3.0 2.0
Rehabilitation costs December 2006 6.4 3.0 2.0
Financial year to date 19.2 9.0 6.0
Production taxes March 2007 2.6 0.2 2.5
December 2006 6.5 2.5 2.5
Financial year to date 16.3 6.0 7.5
General and admin March 2007 82.8 29.6 24.4
December 2006 71.0 28.9 24.5
Financial year to date 225.5 87.5 73.0
Exploration costs March 2007 - - -
December 2006 - - -
Financial year to date - - -
Cash operating costs March 2007 1,955.2 644.5 614.6
December 2006 1,689.0 626.1 600.1
Financial year to date 5,202.9 1,885.3 1,801.6
Plus: March 2007 2.6 0.2 2.5
Production taxes December 2006 6.5 2.5 2.5
Financial year to date 16.3 6.0 7.5
Royalties March 2007 - - -
December 2006 - - -
Financial year to date - - -
TOTAL CASH COSTS(2) March 2007 1,957.8 644.7 617.1
December 2006 1,695.5 628.6 602.6
Financial year to date 5,219.2 1,891.3 1,809.1
Plus: March 2007 335.6 119.6 125.5
Amortisation* December 2006 372.7 122.4 151.3
Financial year to date 1,051.1 361.8 416.3
Rehabilitation March 2007 6.4 3.0 2.0
December 2006 6.4 3.0 2.0
Financial year to date 19.2 9.0 6.0
March 2007 2,299.8 767.3 744.6
TOTAL PRODUCTION
COSTS(3) December 2006 2,074.6 754.0 755.9
Financial year to date 6,289.5 2,262.1 2,231.4
Gold sold March 2007 665.1 251.2 220.0
- thousand ounces December 2006 649.3 247.3 230.6
Financial year to date 1,963.6 756.0 693.3
TOTAL CASH COSTS March 2007 408 356 389
- US$/oz December 2006 354 344 354
Financial year to date 368 346 361
TOTAL CASH COSTS March 2007 94,644 82,506 90,180
- R/kg December 2006 83,952 81,721 84,021
Financial year to date 85,454 80,430 83,894
TOTAL PRODUCTION March 2007 480 424 469
COSTS December 2006 433 413 444
- US$/oz Financial year to date 443 414 445
South African Operations
South
Beatrix Deep+ Total
Operating costs (1) March 2007 387.9 303.3 1,153.2
December 2006 392.1 113.0 1,180.0
Financial year to date 1,158.5 416.3 3,452.8
Gold-in-process and March 2007 - 35.0 (35.8)
inventory change* December 2006 - (21.8) (47.6)
Financial year to date - 13.2 (96.7)
Less: March 2007 1.4 - 2.4
Rehabilitation costs December 2006 1.4 - 2.5
Financial year to date 4.2 - 7.2
Production taxes March 2007 (0.1) - -
December 2006 1.5 - -
Financial year to date 2.8 - -
General and admin March 2007 17.8 11.0 57.0
December 2006 17.6 - 61.8
Financial year to date 54.0 11.0 170.2
Exploration costs March 2007 - - 12.9
December 2006 - - 7.8
Financial year to date - - 29.5
Cash operating costs March 2007 368.8 327.3 1,045.1
December 2006 371.6 91.2 1,060.3
Financial year to date 1,097.5 418.5 3,149.2
Plus: March 2007 (0.1) - -
Production taxes December 2006 1.5 - -
Financial year to date 2.8 - -
Royalties March 2007 - - 52.4
December 2006 - - 56.6
Financial year to date - - 159.9
TOTAL CASH COSTS(2) March 2007 368.7 327.3 1,097.5
December 2006 373.1 91.2 1,116.9
Financial year to date 1,100.3 418.5 3,309.1
Plus: March 2007 35.4 55.1 302.7
Amortisation* December 2006 89.7 9.3 317.3
Financial year to date 208.6 64.4 921.0
Rehabilitation March 2007 1.4 - 2.4
December 2006 1.4 - 2.5
Financial year to date 4.2 - 7.2
March 2007 405.5 382.4 1,402.6
TOTAL PRODUCTION
COSTS(3) December 2006 464.2 100.5 1,436.7
Financial year to date 1,313.1 482.9 4,237.3
Gold sold March 2007 119.2 74.6 397.0
- thousand ounces December 2006 149.5 21.9 430.9
Financial year to date 417.8 96.5 1,249.7
TOTAL CASH COSTS March 2007 429 608 383
- US$/oz December 2006 338 564 351
Financial year to date 364 600 366
TOTAL CASH COSTS March 2007 99,434 141,017 88,881
- R/kg December 2006 80,237 133,724 83,338
Financial year to date 84,678 139,361 85,130
TOTAL PRODUCTION March 2007 472 711 490
COSTS December 2006 421 621 452
- US$/oz Financial year to date 435 692 469
International Operations
Ghana Venezuela
Tarkwa Damang Choco 10
Operating costs (1) March 2007 465.8 160.2 64.6
December 2006 454.4 165.8 78.4
Financial year to date 1,348.7 468.4 212.6
Gold-in-process and March 2007 (16.6) 1.5 (19.9)
inventory change* December 2006 (25.0) 3.0 (0.2)
Financial year to date (44.8) 12.3 (24.2)
Less: March 2007 0.8 - -
Rehabilitation costs December 2006 0.8 - -
Financial year to date 2.3 - -
Production taxes March 2007 - - -
December 2006 - - -
Financial year to date - - -
General and admin March 2007 25.8 4.2 11.9
December 2006 27.3 4.4 10.6
Financial year to date 76.5 12.3 34.1
Exploration costs March 2007 - 5.9 -
December 2006 - 0.7 -
Financial year to date - 8.7 -
Cash operating costs March 2007 422.6 151.6 32.8
December 2006 401.3 163.7 67.6
Financial year to date 1,225.1 459.7 154.3
Plus: March 2007 - - -
Production taxes December 2006 - - -
Financial year to date - - -
Royalties March 2007 24.3 7.2 1.3
December 2006 24.4 6.6 4.0
Financial year to date 71.8 20.2 7.4
TOTAL CASH COSTS(2) March 2007 446.9 158.8 34.1
December 2006 425.7 170.3 71.6
Financial year to date 1,296.9 479.9 161.7
Plus: March 2007 67.5 8.6 7.0
Amortisation* December 2006 66.9 9.6 13.9
Financial year to date 200.9 25.3 33.6
Rehabilitation March 2007 0.8 - -
December 2006 0.8 - -
Financial year to date 2.3 - -
March 2007 515.2 167.4 41.1
TOTAL PRODUCTION
COSTS(3) December 2006 493.4 179.9 85.5
Financial year to date 1,500.1 505.2 195.3
Gold sold March 2007 174.3 48.5 8.2
- thousand ounces December 2006 178.8 51.6 22.8
Financial year to date 526.7 148.6 48.3
TOTAL CASH COSTS March 2007 356 454 575
- US$/oz December 2006 323 447 426
Financial year to date 341 447 463
TOTAL CASH COSTS March 2007 82,454 105,305 133,203
- R/kg December 2006 76,537 106,106 100,987
Financial year to date 79,186 103,852 107,728
TOTAL PRODUCTION March 2007 410 479 693
COSTS December 2006 374 472 508
- US$/oz Financial year to date 394 470 560
International Operations
Australia #
St Ives Agnew
Operating costs (1) March 2007 329.6 133.0
December 2006 372.2 109.2
Financial year to date 1,093.8 329.3
Gold-in-process and March 2007 19.4 (20.2)
inventory change* December 2006 (14.8) (10.6)
Financial year to date (7.8) (32.2)
Less: March 2007 1.6 -
Rehabilitation costs December 2006 1.7 -
Financial year to date 4.9 -
Production taxes March 2007 - -
December 2006 - -
Financial year to date - -
General and admin March 2007 10.1 5.0
December 2006 15.4 4.1
Financial year to date 35.4 11.9
Exploration costs March 2007 6.3 0.7
December 2006 6.4 0.7
Financial year to date 18.8 2.0
Cash operating costs March 2007 331.0 107.1
December 2006 333.9 93.8
Financial year to date 1,026.9 283.2
Plus: March 2007 - -
Production taxes December 2006 - -
Financial year to date - -
Royalties March 2007 14.4 5.2
December 2006 13.8 7.8
Financial year to date 42.0 18.5
TOTAL CASH COSTS(2) March 2007 345.4 112.3
December 2006 347.7 101.6
Financial year to date 1,068.9 301.7
Plus: March 2007 219.6
Amortisation* December 2006 226.9
Financial year to date 661.2
Rehabilitation March 2007 1.6
December 2006 1.7
Financial year to date 4.9
March 2007 678.9
TOTAL PRODUCTION
COSTS(3) December 2006 677.9
Financial year to date 2,036.7
Gold sold March 2007 119.4 46.6
- thousand ounces December 2006 124.6 53.0
Financial year to date 367.4 158.8
TOTAL CASH COSTS March 2007 401 334
- US$/oz December 2006 378 260
Financial year to date 402 263
TOTAL CASH COSTS March 2007 92,974 77,502
- R/kg December 2006 89,706 61,576
Financial year to date 93,533 61,073
TOTAL PRODUCTION March 2007 567
COSTS December 2006 517
- US$/oz Financial year to date 535
DEFINITIONS
Total cash costs and Total production costs 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 costs - Operating costs less off-mine costs, which include
general and administration costs, as detailed in the table above.
(3) Total production costs - Total cash costs plus amortisation/depreciation
and rehabilitation provisions, as detailed in the table above.
* Adjusted for amortisation/depreciation (non-cash item) excluded from
gold-in-process change.
Average exchange rates are US$1 = R7.21 and US$1 = R7.38 for the March 2007
and December 2006 quarters respectively.
# As a significant portion of the acquisition price was allocated to
tenements of St Ives and Agnew based on endowment ounces and also as these two
Australian operations are entitled to transfer and then off-set tax
losses from one company to another, it is not meaningful to split the income
statement below operating profit.
+ The acquisition of South Deep is effective from 1 December 2006.
Restated total cash cost on the assumption that Ore Reserve Development
(ORD) is fully expensed
Total Mine
Operations
Total cash costs as above March 2007 3,055.3
(ORD capitalised) December 2006 2,812.4
Financial year to date 8,528.3
Add back ORD March 2007 248.2
December 2006 246.2
Financial year to date 727.5
Restated total cash costs ## March 2007 3,303.5
December 2006 3,058.6
Financial year to date 9,255.8
Restated total cash costs March 2007 431
- US$ per ounce December 2006 384
Financial year to date 398
Restated total cash costs March 2007 100,003
- Rand per kilogram December 2006 91,035
Financial year to date 92,607
South African
Operations
Total Driefontein Kloof
Total cash costs as above March 2007 1,957.8 644.7 617.1
(ORD capitalised) December 2006 1,695.5 628.6 602.6
Financial year to date 5,219.2 1,891.3 1,809.1
248.2 79.6 96.4
Add back ORD March 2007
December 2006 246.2 94.3 96.4
Financial year to date 727.5 259.3 280.7
Restated total cash costs ## March 2007 2,206.0 724.3 713.5
December 2006 1,941.7 722.9 699.0
Financial year to date 5,946.7 2,150.6 2,089.8
Restated total cash costs March 2007 460 400 450
- US$ per ounce December 2006 405 396 411
Financial year to date 419 393 417
Restated total cash costs March 2007 106,642 92,693 104,267
- Rand per kilogram December 2006 96,143 93,981 97,462
Financial year to date 97,366 91,457 96,912
South African International
Operations Operations
South
Beatrix Deep+ Total
Total cash costs as above March 2007 368.7 327.3 1,097.5
(ORD capitalised) December 2006 373.1 91.2 1,116.9
Financial year to date 1,100.3 418.5 3,309.1
66.0 6.2 -
Add back ORD March 2007
December 2006 55.5 - -
Financial year to date 181.3 6.2 -
Restated total cash costs ## March 2007 434.7 333.5 1,097.5
December 2006 428.6 91.2 1,116.9
Financial year to date 1,281.6 424.7 3,309.1
Restated total cash costs March 2007 506 620 383
- US$ per ounce December 2006 388 564 351
Financial year to date 424 608 366
Restated total cash costs March 2007 117,233 143,688 88,881
- Rand per kilogram December 2006 92,172 133,724 83,338
Financial year to date 98,630 141,425 85,130
## Restated total cash costs relates to total cash costs prior to the change
in accounting policy.
+ The acquisition of South Deep is effective from 1 December 2006.
Operating and financial results
South African Rand Total Mine
Operations
Operating Results
Ore milled/treated (000 tons)
March 2007 13,382
December 2006 13,109
Financial year to date 39,349
Yield (grams per ton)
March 2007 2.5
December 2006 2.6
Financial year to date 2.5
Gold produced (kilograms)
March 2007 32,788
December 2006 33,754
Financial year to date 99,825
Gold sold (kilograms)
March 2007 33,034
December 2006 33,598
Financial year to date 99,947
Gold price received (Rand per kilogram)
March 2007 151,184
December 2006 144,485
Financial year to date 145,882
Total cash costs (Rand per kilogram)
March 2007 92,490
December 2006 83,707
Financial year to date 85,328
Total production costs (Rand per kilogram)
March 2007 112,078
December 2006 104,536
Financial year to date 105,324
Operating costs (Rand per ton)
March 2007 237
December 2006 227
Financial year to date 226
Financial Results (Rand million)
Revenue
March 2007 4,994.2
December 2006 4,854.4
Financial year to date 14,580.5
Operating costs
March 2007 3,165.2
December 2006 2,974.7
Financial year to date 8,903.
Gold inventory change
March 2007 (11.1)
December 2006 (89.7)
Financial year to date (119.1)
Operating profit
March 2007 1,840.1
December 2006 1,969.4
Financial year to date 5,796.1
Amortisation of mining assets
March 2007 648.4
December 2006 710.3
Financial year to date 2,007.5
Net operating profit
March 2007 1,191.7
December 2006 1,259.1
Financial year to date 3,788.6
Other income/(expense)
March 2007 27.9
December 2006 (17.1)
Financial year to date (6.0)
Profit before taxation
March 2007 1,219.6
December 2006 1,242.0
Financial year to date 3,782.6
Mining and income taxation
March 2007 408.4
December 2006 423.2
Financial year to date 1,308.5
- Normal taxation
March 2007 222.2
December 2006 205.3
Financial year to date 673.8
- Deferred taxation
March 2007 186.2
December 2006 217.9
Financial year to date 634.7
Profit before exceptional items
March 2007 811.2
December 2006 818.8
Financial year to date 2,474.1
Exceptional items
March 2007 71.9
December 2006 7.9
Financial year to date 88.1
Net profit
March 2007 883.1
December 2006 826.7
Financial year to date 2,562.2
March 2007 835.8
Net profit excluding gains and
losses on December 2006 822.0
foreign exchange and
exceptional items Financial year to date 2,517.1
Capital expenditure March 2007 1,004.9
December 2006 1,025.8
Financial year to date 2,852.5
Planned for next six months
to September 2007 2,948.5
South African Rand South African Operations
Total Driefontein Kloof
Operating Results
Ore milled/treated (000 tons)
March 2007 3,844 1,634 920
December 2006 3,778 1,673 986
Financial year to date 11,301 5,010 2,898
Yield
(grams per ton)
March 2007 5.3 4.8 7.4
December 2006 5.4 4.6 7.3
Financial year to date 5.4 4.7 7.4
Gold produced
(kilograms)
March 2007 20,440 7,814 6,843
December 2006 20,352 7,692 7,172
Financial year to date 60,986 23,515 21,564
Gold sold
(kilograms)
March 2007 20,686 7,814 6,843
December 2006 20,196 7,692 7,172
Financial year to date 61,076 23,515 21,564
Gold price received
(Rand per kilogram)
March 2007 151,445 151,932 151,016
December 2006 144,083 144,371 144,423
Financial year to date 145,928 146,068 145,604
Total cash costs
(Rand per kilogram)
March 2007 94,644 82,506 90,180
December 2006 83,952 81,721 84,021
Financial year to date 85,454 80,430 83,894
Total production costs
(Rand per kilogram)
March 2007 111,177 98,196 108,812
December 2006 102,773 98,024 105,396
Financial year to date 102,978 96,198 103,478
Operating costs
(Rand per ton)
March 2007 523 415 699
December 2006 475 395 638
Financial year to date 482 397 652
Financial Results
(Rand million)
Revenue
March 2007 3,132.8 1,187.2 1,033.4
December 2006 2,909.9 1,110.5 1,035.8
Financial year to date 8,912.7 3,434.8 3,139.8
Operating costs
March 2007 2,012.0 677.3 643.5
December 2006 1,794.7 660.5 629.1
Financial year to date 5,450.7 1,987.8 1,888.1
Gold inventory change
March 2007 35.0 - -
December 2006 (21.8) - -
Financial year to date 13.2 - -
Operating profit
March 2007 1,085.8 509.9 389.9
December 2006 1,137.0 450.0 406.7
Financial year to date 3,448.8 1,447.0 1,251.7
Amortisation of
mining assets
March 2007 335.6 119.6 125.5
December 2006 372.7 122.4 151.3
Financial year to date 1,051.1 361.8 416.3
Net operating profit
March 2007 750.2 390.3 264.4
December 2006 764.3 327.6 255.4
Financial year to date 2,397.7 1,085.2 835.4
Other income/(expense)
March 2007 (4.6) (7.7) (5.1)
December 2006 (42.9) (10.8) (9.5)
Financial year to date (74.2) (27.3) (21.9)
Profit before taxation
March 2007 745.6 382.6 259.3
December 2006 721.4 316.8 245.9
Financial year to date 2,323.5 1,057.9 813.5
Mining and
income taxation
March 2007 235.7 129.9 61.6
December 2006 229.6 104.1 62.9
Financial year to date 768.1 356.8 231.4
- Normal taxation
March 2007 129.4 99.1 30.2
December 2006 75.3 75.1 0.1
Financial year to date 317.6 287.0 30.4
- Deferred taxation
March 2007 106.3 30.8 31.4
December 2006 154.3 29.0 62.8
Financial year to date 450.5 69.8 201.0
Profit before
exceptional items
March 2007 509.9 252.7 197.7
December 2006 491.8 212.7 183.0
Financial year to date 1,555.4 701.1 582.1
Exceptional items
March 2007 10.5 - 0.6
December 2006 2.9 0.8 -
Financial year to date 21.6 5.3 0.6
Net profit
March 2007 520.4 252.7 198.3
December 2006 494.7 213.5 183.0
Financial year to date 1,577.0 706.4 582.7
March 2007 513.9 252.9 198.0
Net profit excluding gains
and losses on foreign
exchange and December 2006 493.0 213.1 183.0
exceptional items Financial year to date 1,563.5 703.3 582.3
Capital expenditure
March 2007 591.2 195.9 192.5
December 2006 564.7 177.4 190.7
Financial year to date 1,588.7 517.1 566.9
Planned for next six
months to September 2007 1,591.0 557.9 402.8
South African Rand South African
Operations
Beatrix South Deep+
Operating Results
Ore milled/treated (000 tons)
March 2007 807 483
December 2006 935 184
Financial year to date 2,726 667
Yield
(grams per ton)
March 2007 4.6 4.3
December 2006 5.0 4.6
Financial year to date 4.8 4.4
Gold produced
(kilograms)
March 2007 3,708 2,075
December 2006 4,650 838
Financial year to date 12,994 2,913
Gold sold
(kilograms)
March 2007 3,708 2,321
December 2006 4,650 682
Financial year to date 12,994 3,003
Gold price received
(Rand per kilogram)
March 2007 151,807 150,495
December 2006 143,398 141,935
Financial year to date 145,606 148,551
Total cash costs
(Rand per kilogram)
March 2007 99,434 141,017
December 2006 80,237 133,724
Financial year to date 84,678 139,361
Total production costs
(Rand per kilogram)
March 2007 109,358 164,757
December 2006 99,828 147,361
Financial year to date 101,054 160,806
Operating costs
(Rand per ton)
March 2007 481 628
December 2006 419 614
Financial year to date 425 624
Financial Results
(Rand million)
Revenue
March 2007 562.9 349.3
December 2006 666.8 96.8
Financial year to date 1,892.0 446.1
Operating costs
March 2007 387.9 303.3
December 2006 392.1 113.0
Financial year to date 1,158.5 416.3
Gold inventory change
March 2007 - 35.0
December 2006 - (21.8)
Financial year to date - 13.2
Operating profit
March 2007 175.0 11.0
December 2006 274.7 5.6
Financial year to date 733.5 16.6
Amortisation of
mining assets
March 2007 35.4 55.1
December 2006 89.7 9.3
Financial year to date 208.6 64.4
Net operating profit
March 2007 139.6 (44.1)
December 2006 185.0 (3.7)
Financial year to date 524.9 (47.8)
Other income/(expense)
March 2007 (9.0) 17.2
December 2006 (11.3) (11.3)
Financial year to date (30.9) 5.9
Profit before taxation
March 2007 130.6 (26.9)
December 2006 173.7 (15.0)
Financial year to date 494.0 (41.9)
Mining and
income taxation
March 2007 50.3 (6.1)
December 2006 67.9 (5.3)
Financial year to date 191.3 (11.4)
- Normal taxation
March 2007 0.1 -
December 2006 0.1 -
Financial year to date 0.2 -
- Deferred taxation
March 2007 50.2 (6.1)
December 2006 67.8 (5.3)
Financial year to date 191.1 (11.4)
Profit before
exceptional items
March 2007 80.3 (20.8)
December 2006 105.8 (9.7)
Financial year to date 302.7 (30.5)
Exceptional items
March 2007 0.5 9.4
December 2006 2.1 -
Financial year to date 6.3 9.4
Net profit
March 2007 80.8 (11.4)
December 2006 107.9 (9.7)
Financial year to date 309.0 (21.1)
March 2007 80.5 (17.5)
Net profit excluding gains
and losses on foreign
exchange and December 2006 106.6 (9.7)
exceptional items Financial year to date 305.1 (27.2)
Capital expenditure
March 2007 124.0 78.8
December 2006 156.1 40.5
Financial year to date 385.4 119.3
Planned for next six
months to September 2007 314.3 316.0
+ The acquisition of South Deep is effective from 1 December 2006.
Operating and financial results
International Operations
South African Rand Ghana
Total Tarkwa Damang
Operating Results
Ore milled/treated (000 tons) 9,538 5,895 1,384
March 2007
December 2006 9,331 5,588 1,326
Financial year to date 28,048 16,997 4,027
Yield
(grams per ton)
March 2007 1.3 0.9 1.1
December 2006 1.4 1.0 1.2
Financial year to date 1.4 1.0 1.1
Gold produced
(kilograms)
March 2007 12,348 5,420 1,508
December 2006 13,402 5,562 1,605
Financial year to date 38,839 16,381 4,621
Gold sold
(kilograms)
March 2007 12,348 5,420 1,508
December 2006 13,402 5,562 1,605
Financial year to date 38,871 16,381 4,621
Gold price received
(Rand per kilogram)
March 2007 150,745 150,738 150,398
December 2006 145,090 144,966 145,171
Financial year to date 145,811 146,005 145,834
Total cash costs
(Rand per kilogram)
March 2007 88,881 82,454 105,305
December 2006 83,338 76,537 106,106
Financial year to date 85,130 79,171 103,852
Total production costs
(Rand per kilogram)
March 2007 113,589 95,055 111,008
December 2006 107,193 88,709 112,087
Financial year to date 109,009 91,576 109,327
Operating costs
(Rand per ton)
March 2007 121 79 116
December 2006 126 81 125
Financial year to date 123 79 116
Financial Results
(Rand million)
Revenue
March 2007 1,861.4 817.0 226.8
December 2006 1,944.5 806.3 233.0
Financial year to date 5,667.8 2,391.7 673.9
Operating costs
March 2007 1,153.2 465.8 160.2
December 2006 1,180.0 454.4 165.8
Financial year to date 3,452.8 1,348.7 468.4
Gold inventory change
March 2007 (46.1) (19.6) 1.3
December 2006 (67.9) (29.1) 2.9
Financial year to date (132.3) (53.2) 12.1
Operating profit
March 2007 754.3 370.8 65.3
December 2006 832.4 381.0 64.3
Financial year to date 2,347.3 1,096.2 193.4
Amortisation of mining
assets
March 2007 312.8 70.5 8.8
December 2006 337.6 71.0 9.8
Financial year to date 956.4 209.3 25.6
Net operating profit
March 2007 441.5 300.3 56.5
December 2006 494.8 310.0 54.5
Financial year to date 1,390.9 886.9 167.8
Other income/(expense)
March 2007 32.5 (0.4) (0.7)
December 2006 25.8 2.1 0.5
Financial year to date 68.2 (5.7) -
Profit before taxation
March 2007 474.0 299.9 55.8
December 2006 520.6 312.1 55.0
Financial year to date 1,459.1 881.2 167.8
Mining and
income taxation
March 2007 172.7 92.6 19.0
December 2006 193.6 95.5 21.3
Financial year to date 540.4 274.3 59.5
- Normal taxation
March 2007 92.8 65.3 6.6
December 2006 130.0 85.3 11.0
Financial year to date 356.2 241.7 26.5
- Deferred taxation
March 2007 79.9 27.3 12.4
December 2006 63.6 10.2 10.3
Financial year to date 184.2 32.6 33.0
Profit before
exceptional items
March 2007 301.3 207.3 36.8
December 2006 327.0 216.6 33.7
Financial year to date 918.7 606.9 108.3
Exceptional items
March 2007 61.4 - -
December 2006 5.0 - -
Financial year to date 66.5 - -
Net profit
March 2007 362.7 207.3 36.8
December 2006 332.0 216.6 33.7
Financial year to date 985.2 606.9 108.3
March 2007 321.9 208.1 37.1
Net profit excluding
gains and losses on
foreign exchange and December 2006 329.0 217.5 34.1
exceptional
items Financial year to date 953.6 616.6 111.8
Capital
expenditure
March 2007 413.7 151.5 64.6
December 2006 461.1 188.5 52.5
Financial year to date 1,263.8 430.2 165.2
Planned for next six
months to September 2007 1,357.5 758.9 116.6
Operating and financial results
International Operations
South African Rand Venezuela Australia #
Choco 10 St Ives Agnew
Operating Results
Ore milled/treated
(000 tons)
March 2007 191 1,744 324
December 2006 357 1,742 318
Financial year to date 854 5,184 986
Yield
(grams per ton)
March 2007 1.3 2.1 4.5
December 2006 2.0 2.2 5.2
Financial year to date 1.7 2.2 5.0
Gold produced
(kilograms)
March 2007 256 3,715 1,449
December 2006 709 3,876 1,650
Financial year to date 1,469 11,428 4,940
Gold sold
(kilograms)
March 2007 256 3,715 1,449
December 2006 709 3,876 1,650
Financial year to date 1,501 11,428 4,940
Gold price received
(Rand per kilogram)
March 2007 152,344 150,713 150,932
December 2006 142,877 144,788 147,091
Financial year to date 142,372 145,686 146,478
Total cash costs
(Rand per kilogram)
March 2007 133,203 92,974 77,502
December 2006 100,987 89,706 61,576
Financial year to date 107,728 93,533 61,073
Total production costs
(Rand per kilogram)
March 2007 160,547 131,468
December 2006 120,451 122,675
Financial year to date 130,113 124,432
Operating costs
(Rand per ton)
March 2007 338 189 410
December 2006 220 214 343
Financial year to date 249 211 334
Financial Results
(Rand million)
Revenue
March 2007 39.0 559.9 218.7
December 2006 101.3 561.2 242.7
Financial year to date 213.7 1,664.9 723.6
Operating costs
March 2007 64.6 329.6 133.0
December 2006 78.4 372.2 109.2
Financial year to date 212.6 1,093.8 329.3
Gold inventory change
March 2007 (19.8) 28.4 (36.4)
December 2006 (0.3) (23.9) (17.5)
Financial year to date (24.2) (15.3) (51.7)
Operating profit
March 2007 (5.8) 201.9 122.1
December 2006 23.2 212.9 151.0
Financial year to date 25.3 586.4 446.0
Amortisation of
mining assets 7.0 226.5
March 2007
December 2006 13.9 242.9
Financial year to date 33.6 687.9
Net operating profit
March 2007 (12.8) 97.5
December 2006 9.3 121.0
Financial year to date (8.3) 344.5
Other income/(expense)
March 2007 (1.0) 34.6
December 2006 1.8 21.4
Financial year to date 6.9 67.0
Profit before taxation
March 2007 (13.8) 132.1
December 2006 11.1 142.4
Financial year to date (1.4) 411.5
Mining and income taxation
March 2007 (7.0) 68.1
December 2006 17.5 59.3
Financial year to date 24.6 182.0
- Normal taxation
March 2007 1.3 19.6
December 2006 12.1 21.6
Financial year to date 27.5 60.5
- Deferred taxation
March 2007 (8.3) 48.5
December 2006 5.4 37.7
Financial year to date (2.9) 121.5
Profit before
exceptional items
March 2007 (6.8) 64.0
December 2006 (6.4) 83.1
Financial year to date (26.0) 229.5
Exceptional items
March 2007 - 61.4
December 2006 - 5.0
Financial year to date - 66.5
Net profit
March 2007 (6.8) 125.4
December 2006 (6.4) 88.1
Financial year to date (26.0) 296.0
March 2007 (6.8) 83.5
Net profit excluding gains
and losses on foreign
exchange and December 2006 (6.4) 83.8
exceptional items Financial year to date (26.0) 251.2
Capital expenditure
March 2007 16.8 148.2 32.6
December 2006 37.9 126.3 55.9
Financial year to date 131.9 390.8 145.7
Planned for next six
months to September 2007 110.9 319.0 52.1
Operating and financial results
Total Mine
United States Dollars
Operations
Operating Results
Ore milled/treated (000 tons)
March 2007 13,382
December 2006 13,109
Financial year to date 39,349
Yield (ounces per ton)
March 2007 0.079
December 2006 0.083
Financial year to date 0.082
Gold produced (000 ounces)
March 2007 1,054.1
December 2006 1,085.2
Financial year to date 3,209.4
Gold sold (000 ounces)
March 2007 1,062.1
December 2006 1,080.2
Financial year to date 3,213.4
Gold price received (dollars
per ounce)
March 2007 652
December 2006 609
Financial year to date 628
Total cash costs (dollars per
ounce)
March 2007 399
December 2006 353
Financial year to date 367
Total production costs (dollars
per ounce)
March 2007 483
December 2006 440
Financial year to date 453
Operating costs (dollars per
ton)
March 2007 33
December 2006 31
Financial year to date 31
Financial Results ($ million)
Revenue
March 2007 692.6
December 2006 657.6
Financial year to date 2,016.7
Operating costs
March 2007 438.9
December 2006 403.4
Financial year to date 1,231.5
Gold inventory change
March 2007 (1.6)
December 2006 (12.3)
Financial year to date (16.5)
Operating profit
March 2007 255.3
December 2006 266.5
Financial year to date 801.7
Amortisation of mining assets
March 2007 90.0
December 2006 96.2
Financial year to date 277.7
Net operating profit
March 2007 165.3
December 2006 170.3
Financial year to date 524.0
Other income/(expenses)
March 2007 3.9
December 2006 (2.4)
Financial year to date (0.8)
Profit before taxation
March 2007 169.2
December 2006 167.9
Financial year to date 523.2
Mining and income taxation
March 2007 56.7
December 2006 57.1
Financial year to date 181.0
- Normal taxation
March 2007 30.9
December 2006 27.7
Financial year to date 93.2
- Deferred taxation
March 2007 25.8
December 2006 29.4
Financial year to date 87.8
Profit before exceptional items
March 2007 112.5
December 2006 110.8
Financial year to date 342.2
Exceptional items
March 2007 10.0
December 2006 1.1
Financial year to date 12.2
Net profit
March 2007 122.5
December 2006 111.9
Financial year to date 354.4
March 2007 113.3
Net profit excluding gains and
losses on foreign exchange and December 2006 111.1
exceptional items Financial year to date 348.1
Capital expenditure
March 2007 139.1
December 2006 139.5
Financial year to date 394.5
Planned for next
six months to September 2007 409.5
Operating and financial results
South African Operations
United States Dollars
Total Driefontein Kloof
Operating Results
Ore milled/treated
(000 tons)
March 2007 3,844 1,634 920
December 2006 3,778 1,673 986
Financial year to date 11,301 5,010 2,898
Yield
(ounces per ton)
March 2007 0.171 0.154 0.239
December 2006 0.173 0.148 0.234
Financial year to date 0.173 0.151 0.239
Gold produced
(000 ounces)
March 2007 657.1 251.2 220.0
December 2006 654.3 247.3 230.6
Financial year to date 1,960.7 756.0 693.3
Gold sold
(000 ounces)
March 2007 665.1 251.2 220.0
December 2006 649.3 247.3 230.6
Financial year to date 1,963.6 756.0 693.3
Gold price received
(dollars per ounce)
March 2007 653 655 651
December 2006 607 608 609
Financial year to date 628 628 626
Total cash costs
(dollars per ounce)
March 2007 408 356 389
December 2006 354 344 354
Financial year to date 368 346 361
Total production costs
(dollars per ounce)
March 2007 480 424 469
December 2006 433 413 444
Financial year to date 443 414 445
Operating costs
(dollars per ton)
March 2007 73 57 97
December 2006 64 53 86
Financial year to date 67 55 90
Financial Results
($ million)
Revenue
March 2007 434.2 164.6 143.3
December 2006 394.1 150.3 140.2
Financial year to date 1,232.7 475.1 434.3
Operating costs
March 2007 279.0 93.9 89.2
December 2006 243.5 89.5 85.2
Financial year to date 753.9 274.9 261.1
Gold inventory change
March 2007 4.8 - -
December 2006 (3.0) - -
Financial year to date 1.8 - -
Operating profit
March 2007 150.4 70.6 54.0
December 2006 153.7 60.8 54.9
Financial year to date 477.0 200.1 173.1
Amortisation of
mining assets
March 2007 46.6 16.5 17.5
December 2006 50.4 16.6 20.5
Financial year to date 145.4 50.0 57.6
Net operating profit
March 2007 103.8 54.1 36.5
December 2006 103.3 44.2 34.4
Financial year to date 331.6 150.1 115.5
Other income/(expenses)
March 2007 (0.7) (1.1) (0.7)
December 2006 (5.9) (1.5) (1.3)
Financial year to date (10.3) (3.8) (3.0)
Profit before
taxation
March 2007 103.2 53.0 35.8
December 2006 97.3 42.7 33.1
Financial year to date 321.4 146.3 112.5
Mining and income
taxation
March 2007 32.5 17.9 8.5
December 2006 30.9 14.6 8.4
Financial year to date 106.2 49.3 32.0
- Normal taxation
March 2007 17.9 13.7 4.2
December 2006 10.1 10.1 -
Financial year to date 43.9 39.7 4.2
- Deferred taxation
March 2007 14.6 4.3 4.3
December 2006 20.8 4.0 8.4
Financial year to date 62.3 9.7 27.8
Profit before
exceptional items
March 2007 70.7 35.1 27.3
December 2006 66.5 28.6 24.7
Financial year to date 215.2 97.0 80.5
Exceptional items
March 2007 1.5 - 0.1
December 2006 0.4 0.1 -
Financial year to date 3.0 0.7 0.1
Net profit
March 2007 72.1 35.1 27.4
December 2006 66.9 28.8 24.7
Financial year to date 218.1 97.7 80.6
March 2007 68.7 33.9 27.4
Net profit excluding gains
and losses on foreign exchange
and exceptional items
December 2006 66.6 28.7 24.7
Financial year to date 216.3 97.3 80.5
Capital expenditure
March 2007 81.8 27.1 26.6
December 2006 76.8 24.1 25.8
Financial year to date 219.7 71.5 78.4
Planned for next
six months to September 2007 221.0 77.5 55.9
Operating and financial results
South African Operations
United States Dollars
Beatrix South Deep +
Operating Results
Ore milled/treated (000 tons)
March 2007 807 483
December 2006 935 184
Financial year to date 2,726 667
Yield
(ounces per ton)
March 2007 0.148 0.138
December 2006 0.160 0.146
Financial year to date 0.153 0.140
Gold produced
(000 ounces)
March 2007 119.2 66.7
December 2006 149.5 26.9
Financial year to date 417.8 93.7
Gold sold
(000 ounces)
March 2007 119.2 74.6
December 2006 149.5 21.9
Financial year to date 417.8 96.5
Gold price received
(dollars per ounce)
March 2007 655 649
December 2006 604 598
Financial year to date 626 639
Total cash costs
(dollars per ounce)
March 2007 429 608
December 2006 338 564
Financial year to date 364 600
Total production costs
(dollars per ounce)
March 2007 472 711
December 2006 421 621
Financial year to date 435 692
Operating costs
(dollars per ton)
March 2007 67 87
December 2006 57 83
Financial year to date 59 86
Financial Results
($ million)
Revenue
March 2007 78.1 48.3
December 2006 90.3 13.4
Financial year to date 261.7 61.7
Operating costs
March 2007 53.8 42.0
December 2006 53.1 15.6
Financial year to date 160.2 57.6
Gold inventory change
March 2007 - 4.8
December 2006 - (3.0)
Financial year to date - 1.8
Operating profit
March 2007 24.3 1.5
December 2006 37.2 0.8
Financial year to date 101.5 2.3
Amortisation of
mining assets
March 2007 5.0 7.6
December 2006 12.0 1.3
Financial year to date 28.9 8.9
Net operating profit
March 2007 19.3 (6.1)
December 2006 25.1 (0.5)
Financial year to date 72.6 (6.6)
Other income/(expenses)
March 2007 (1.3) 2.4
December 2006 (1.5) (1.6)
Financial year to date (4.3) 0.8
Profit before taxation
March 2007 18.0 (3.7)
December 2006 23.6 (2.1)
Financial year to date 68.3 (5.8)
Mining and
income taxation
March 2007 7.0 (0.9)
December 2006 9.2 (0.7)
Financial year to date 26.5 (1.6)
- Normal taxation
March 2007 - -
December 2006 - -
Financial year to date - -
- Deferred taxation
March 2007 6.9 (0.9)
December 2006 9.2 (0.7)
Financial year to date 26.4 (1.6)
Profit before
exceptional items
March 2007 11.1 (2.8)
December 2006 14.4 (1.3)
Financial year to date 41.9 (4.2)
Exceptional items
March 2007 0.1 1.3
December 2006 0.3 -
Financial year to date 0.9 1.3
Net profit
March 2007 11.1 (1.5)
December 2006 14.7 (1.3)
Financial year to date 42.7 (2.9)
March 2007 9.8 (2.4)
Net profit excluding gains and
losses on foreign
exchange and December 2006 14.5 (1.3)
exceptional
items Financial year to date 42.2 (3.8)
Capital expenditure
March 2007 17.2 10.9
December 2006 21.3 5.6
Financial year to date 53.3 16.5
Planned for next
six months to September 2007 43.7 43.9
Average exchange rates were US$1 = R7.21 and US$1 = R7.38 for the March 2007
and December 2006 quarters respectively. The Australian Dollar exchange rates
were A$1 = R5.66 and A$1 = R5.66 for the March 2007 and December 2006 quarters
respectively. # As a significant portion of the acquisition price was allocated
to tenements of St Ives and Agnew on endowment ounces and also as these two
Australian operations are entitled to transfer and then off-set tax losses from
one company to another, it is not meaningful to split the income statement
below operating profit. Figures may not add as they are rounded independently.
+ The acquisition of South Deep is effective from 1 December 2006.
Operating and financial results
United States Dollars
Total
Operating Results
Ore milled/treated (000 tons) March 2007 9,538
December 2006 9,331
Financial year to date 28,048
Yield (ounces per ton) March 2007 0.042
December 2006 0.046
Financial year to date 0.045
Gold produced(000 ounces) March 2007 397.0
December 2006 430.9
Financial year to date 1,248.7
Gold sold (000 ounces) March 2007 397.0
December 2006 430.9
Financial year to date 1,249.7
Gold price received March 2007 650
(dollars per ounce) December 2006 611
Financial year to date 627
Total cash costs March 2007 383
(dollars per ounce) December 2006 351
Financial year to date 366
Total production costs March 2007 490
(dollars per ounce) December 2006 452
Financial year to date 469
Operating costs March 2007 17
(dollars per ton) December 2006 17
Financial year to date 17
Financial Results ($ million)
Revenue March 2007 258.3
December 2006 263.5
Financial year to date 783.9
Operating costs March 2007 160.0
December 2006 159.9
Financial year to date 477.6
Gold inventory change March 2007 (6.5)
December 2006 (9.3)
Financial year to date (18.3)
Operating profit March 2007 104.9
December 2006 112.9
Financial year to date 324.7
Amortisation of mining assets March 2007 43.4
December 2006 45.8
Financial year to date 132.3
Net operating profit March 2007 61.5
December 2006 67.1
Financial year to date 192.4
Other income/(expenses) March 2007 4.5
December 2006 3.5
Financial year to date 9.4
Profit before taxation March 2007 66.0
December 2006 70.6
Financial year to date 201.8
Mining and income taxation March 2007 24.1
December 2006 26.2
Financial year to date 74.7
- Normal taxation March 2007 13.0
December 2006 17.6
Financial year to date 49.3
- Deferred taxation March 2007 11.2
December 2006 8.6
Financial year to date 25.5
Profit before exceptional items March 2007 41.9
December 2006 44.4
Financial year to date 127.1
Exceptional items March 2007 8.5
December 2006 0.7
Financial year to date 9.2
Net profit March 2007 50.4
December 2006 45.1
Financial year to date 136.3
Net profit excluding gains and March 2007 44.6
losses on December 2006 44.5
foreign exchange,
and exceptional items Financial year to date 131.8
Capital expenditure March 2007 57.3
December 2006 62.6
Financial year to date 174.8
Planned for next six
months to September 2007 188.5
Operating and financial results
International Operations
United States Dollars Ghana Venezuela
Tarkwa Damang Choco 10
Operating Results
Ore milled/treated
(000 tons) March 2007 5,895 1,384 191
December 2006 5,588 1,326 357
Financial year to date 16,997 4,027 854
Yield (ounces
per ton) March 2007 0.030 0.035 0.043
December 2006 0.032 0.039 0.064
Financial year to date 0.031 0.037 0.055
Gold
produced(000
ounces) March 2007 174.3 48.5 8.2
December 2006 178.8 51.6 22.8
Financial year to date 526.7 148.6 47.2
Gold sold (000
ounces) March 2007 174.3 48.5 8.2
December 2006 178.8 51.6 22.8
Financial year to date 526.7 148.6 48.3
Gold price
received March 2007 650 649 657
(dollars per
ounce) December 2006 611 612 602
Financial year to date 628 627 612
Total cash costs March 2007 356 454 575
(dollars per
ounce) December 2006 323 447 426
Financial year to date 341 447 463
Total
production
costs March 2007 410 479 693
(dollars per
ounce) December 2006 374 472 508
Financial year to date 394 470 560
Operating costs March 2007 11 16 47
(dollars per ton) December 2006 11 17 30
Financial year to date 11 16 34
Financial
Results ($ million)
Revenue March 2007 113.3 31.4 5.5
December 2006 109.3 31.6 13.8
Financial year to date 330.8 93.2 29.6
Operating costs March 2007 64.5 22.2 9.0
December 2006 61.6 22.5 10.6
Financial year to date 186.5 64.8 29.4
Gold inventory
change March 2007 (2.8) 0.2 (2.7)
December 2006 (4.0) 0.4 -
Financial year to date (7.4) 1.7 (3.3)
Operating profit March 2007 51.5 9.0 (0.8)
December 2006 51.7 8.7 3.2
Financial year to date 151.6 26.7 3.5
Amortisation of
mining assets March 2007 9.8 1.2 0.9
December 2006 9.6 1.3 1.9
Financial year to date 28.9 3.5 4.6
Net operating
profit March 2007 41.7 7.8 (1.7)
December 2006 42.1 7.4 1.3
Financial year to date 122.7 23.2 (1.1)
Other
income/(expenses) March 2007 (0.1) (0.1) (0.1)
December 2006 0.3 0.1 0.2
Financial year to date (0.8) - 1.0
Profit before
taxation March 2007 41.6 7.7 (1.9)
December 2006 42.4 7.4 1.5
Financial year to date 121.9 23.2 (0.2)
Mining and
income taxation March 2007 12.9 2.6 (0.9)
December 2006 13.0 2.8 2.4
Financial year to date 37.9 8.2 3.4
- Normal
taxation March 2007 9.1 0.9 0.2
December 2006 11.5 1.5 1.6
Financial year to date 33.4 3.7 3.8
- Deferred
taxation March 2007 3.8 1.8 (1.1)
December 2006 1.4 1.3 0.7
Financial year to date 4.5 4.6 (0.4)
Profit before
exceptional
items March 2007 28.6 5.1 (1.0)
December 2006 29.4 4.6 (0.9)
Financial year to date 83.9 15.0 (3.6)
Exceptional
items March 2007 - - -
December 2006 - - -
Financial year to date - - -
Net profit March 2007 28.6 5.1 (1.0)
December 2006 29.4 4.6 (0.9)
Financial year to date 83.9 15.0 (3.6)
Net profit
excluding gains
and losses on March 2007 28.6 5.1 (1.0)
foreign exchange December 2006 29.5 4.6 (0.9)
and exceptional
items Financial year to date 85.3 15.5 (3.6)
Capital
expenditure March 2007 21.0 8.9 2.3
December 2006 25.8 7.1 5.0
Financial year to date 59.5 22.8 18.2
Planned for next six
months to September 2007 105.4 16.2 15.4
Operating and financial results
International Operations
United States Dollars Australia #
St Ives Agnew
Operating Results
Ore milled/treated
(000 tons) March 2007 1,744 324
December 2006 1,742 318
Financial year to date 5184 986
Yield (ounces per
ton) March 2007 0.068 0.144
December 2006 0.072 0.167
Financial year to date 0.071 0.161
Gold produced(000
ounces) March 2007 119.4 46.6
December 2006 124.6 53.0
Financial year to date 367.4 158.8
Gold sold (000
ounces) March 2007 119.4 46.6
December 2006 124.6 53.0
Financial year to date 367.4 158.8
Gold price received March 2007 650 651
(dollars per ounce) December 2006 610 620
Financial year to date 627 630
Total cash costs March 2007 401 334
(dollars per ounce) December 2006 378 260
Financial year to date 402 263
Total production
costs March 2007 567
(dollars per ounce) December 2006 517
Financial year to date 535
Operating costs March 2007 26 57
(dollars per ton) December 2006 29 47
Financial year to date 29 46
Financial Results
($ million)
Revenue March 2007 77.7 30.5
December 2006 76.0 32.8
Financial year to date 230.3 100.1
Operating costs March 2007 45.8 18.4
December 2006 50.3 14.8
Financial year to date 151.3 45.5
Gold inventory
change March 2007 3.9 (5.1)
December 2006 (3.2) (2.4)
Financial year to date (2.1) (7.2)
Operating profit March 2007 28.0 17.1
December 2006 28.9 20.4
Financial year to date 81.1 61.7
Amortisation of
mining assets March 2007 31.3
December 2006 33.0
Financial year to date 95.1
Net operating profit March 2007 13.7
December 2006 16.4
Financial year to date 47.6
Other
income/(expenses) March 2007 4.9
December 2006 2.9
Financial year to date 9.3
Profit before
taxation March 2007 18.6
December 2006 19.3
Financial year to date 56.9
Mining and income
taxation March 2007 9.5
December 2006 8.0
Financial year to date 25.2
- Normal taxation March 2007 2.8
December 2006 2.9
Financial year to date 8.4
- Deferred taxation March 2007 6.7
December 2006 5.1
Financial year to date 16.8
Profit before
exceptional items March 2007 9.1
December 2006 11.2
Financial year to date 31.7
Exceptional items March 2007 8.5
December 2006 0.7
Financial year to date 9.2
Net profit March 2007 17.6
December 2006 11.9
Financial year to date 40.9
Net profit
excluding gains and March 2007 11.8
losses on
foreign exchange and December 2006 11.4
exceptional items Financial year to date 34.8
Capital expenditure March 2007 20.6 4.5
December 2006 17.1 7.6
Financial year to date 54.1 20.2
Planned for next six
months to September 2007 44.3 7.2
Operating and financial results
Australian Dollars
United States Dollars Australia #
St Ives Agnew
Operating Results
Ore milled/treated
(000 tons) March 2007 1,744 324
December 2006 1,742 318
Financial year to date 5,184 986
Yield (ounces per
ton) March 2007 0.068 0.144
December 2006 0.072 0.167
Financial year to date 0.071 0.161
Gold produced(000
ounces) March 2007 119.4 46.6
December 2006 124.6 53.0
Financial year to date 367.4 158.8
Gold sold (000
ounces) March 2007 119.4 46.6
December 2006 124.6 53.0
Financial year to date 367.4 158.8
Gold price received March 2007 828 829
(dollars per ounce) December 2006 796 808
Financial year to date 815 819
Total cash costs March 2007 511 426
(dollars per ounce) December 2006 493 338
Financial year to date 523 342
Total production
costs March 2007 722
(dollars per ounce) December 2006 674
Financial year to date 696
Operating costs March 2007 33 73
(dollars per ton) December 2006 38 61
Financial year to date 38 60
Financial Results
($ million)
Revenue March 2007 99.2 38.6
December 2006 99.1 42.8
Financial year to date 299.4 130.1
Operating costs March 2007 58.2 23.6
December 2006 65.6 19.4
Financial year to date 196.7 59.2
Gold inventory
change March 2007 5.1 (6.5)
December 2006 (3.8) (3.2)
Financial year to date (2.8) (9.3)
Operating profit March 2007 35.9 21.5
December 2006 37.3 26.6
Financial year to date 105.5 80.2
Amortisation of
mining assets March 2007 40.1
December 2006 41.8
Financial year to date 123.7
Net operating
profit March 2007 17.3
December 2006 22.1
Financial year to date 62.0
Other
income/(expenses) March 2007 6.3
December 2006 3.8
Financial year to date 12.1
Profit before
taxation March 2007 23.5
December 2006 25.9
Financial year to date 74.0
Mining and income
taxation March 2007 12.2
December 2006 10.7
Financial year to date 32.8
- Normal taxation March 2007 3.5
December 2006 3.8
Financial year to date 10.9
- Deferred taxation March 2007 8.7
December 2006 6.9
Financial year to date 21.9
Profit before
exceptional items March 2007 11.4
December 2006 15.2
Financial year to date 41.3
Exceptional items March 2007 11.0
December 2006 0.9
Financial year to date 11.9
Net profit March 2007 22.4
December 2006 16.1
Financial year to date 53.2
Net profit
excluding gains
and March 2007 22.4
losses on
foreign exchange and December 2006 15.3
exceptional items Financial year to date 45.2
Capital expenditure March 2007 26.4 5.7
December 2006 22.3 9.9
Financial year to date 70.3 26.2
Planned for next six
months to September 2007 55.0 9.0
Underground and surface
South African Rand and Metric Units
Operating Results Total Mine
Operations
Ore milled / treated
(000 ton)
- underground March 2007 3,317
December 2006 3,308
Financial year to date 9,941
- surface March 2007 10,065
December 2006 9,801
Financial year to date 29,408
- total March 2007 13,382
December 2006 13,109
Financial year to date 39,349
Yield
(grams per ton)
- underground March 2007 6.6
December 2006 6.8
Financial year to date 6.7
- surface March 2007 1.1
December 2006 1.2
Financial year to date 1.1
- combined March 2007 2.5
December 2006 2.6
Financial year to date 2.5
Gold produced
(kilograms)
- underground March 2007 21,926
December 2006 22,453
Financial year to date 66,828
- surface March 2007 10,862
December 2006 11,301
Financial year to date 32,997
- total March 2007 32,788
December 2006 33,754
99,825
Financial year to date
Operating costs
(Rand per ton)
- underground March 2007 648
December 2006 593
Financial year to date 595
- surface March 2007 101
December 2006 103
Financial year to date 102
- total March 2007 237
December 2006 227
Financial year to date 226
Operating Results
South African Operations
Total Driefontein Kloof
Ore milled / treated
(000 ton)
- underground March 2007 2,897 930 851
December 2006 2,866 937 893
Financial year to date 8,563 2,831 2,596
- surface March 2007 947 704 69
December 2006 912 736 93
Financial year to date 2,738 2,179 302
- total March 2007 3,844 1,634 920
December 2006 3,778 1,673 986
Financial year to date 11,301 5,010 2,898
Yield
(grams per ton)
- underground March 2007 6.7 7.6 8.0
December 2006 6.8 7.5 7.8
Financial year to date 6.8 7.5 8.2
- surface March 2007 1.0 1.0 1.0
December 2006 1.0 0.9 2.1
Financial year to date 1.0 1.0 1.3
- combined March 2007 5.3 4.8 7.4
December 2006 5.4 4.6 7.3
Financial year to date 5.4 4.7 7.4
Gold produced
(kilograms)
- underground March 2007 19,484 7,104 6,773
December 2006 19,426 7,016 6,978
Financial year to date 58,197 21,348 21,174
- surface March 2007 956 710 70
December 2006 926 676 194
Financial year to date 2,789 2,167 390
- total March 2007 20,440 7,814 6,843
December 2006 20,352 7,692 7,172
Financial year to date 60,986 23,515 21,564
Operating costs
(Rand per ton)
- underground March 2007 673 680 748
December 2006 605 654 696
Financial year to date 616 653 718
- surface March 2007 65 64 101
December 2006 66 65 86
Financial year to date 65 64 83
- total March 2007 523 415 699
December 2006 475 395 638
Financial year to date 482 397 652
Operating Results
South African Operations
Beatrix South Total
Deep+
Ore milled / treated
(000 ton)
- underground March 2007 807 309 420
December 2006 935 101 442
Financial year to date 2,726 410 1,378
- surface March 2007 - 174 9,118
December 2006 - 83 8,889
Financial year to date - 257 26,670
- total March 2007 807 483 9,538
December 2006 935 184 9,331
Financial year to date 2,726 667 28,048
Yield
(grams per ton)
- underground March 2007 4.6 6.1 5.8
December 2006 5.0 7.7 6.8
Financial year to date 4.8 6.5 6.3
- surface March 2007 - 1.0 1.1
December 2006 - 0.7 1.2
Financial year to date - 0.9 1.1
- combined March 2007 4.6 4.3 1.3
December 2006 5.0 4.6 1.4
Financial year to date 4.8 4.4 1.4
Gold produced
(kilograms)
- underground March 2007 3,708 1,899 2,442
December 2006 4,650 782 3,027
Financial year to date 12,994 2,681 8,631
- surface March 2007 - 176 9,906
December 2006 - 56 10,375
Financial year to date - 232 30,208
- total March 2007 3,708 2,075 12,348
December 2006 4,650 838 13,402
12,994 2,913 38,839
Financial year to date
Operating costs
(Rand per ton)
- underground March 2007 481 951 475
December 2006 419 1,078 517
Financial year to date 425 982 466
- surface March 2007 - 54 105
December 2006 - 50 107
Financial year to date - 53 105
- total March 2007 481 628 121
December 2006 419 614 126
Financial year to date 425 624 123
International Operations
Operating Results Ghana Venezuela
Tarkwa Damang Choco 10
Ore milled / treated
(000 ton)
- underground March 2007 - - -
December 2006 - - -
Financial year to date - -
- surface March 2007 5,895 1,384 191
December 2006 5,588 1,326 357
Financial year to date 16,997 4,027 854
- total March 2007 5,895 1,384 191
December 2006 5,588 1,326 357
Financial year to date 16,997 4,027 854
Yield
(grams per ton)
- underground March 2007 - - -
December 2006 - - -
Financial year to date - -
- surface March 2007 0.9 1.1 1.3
December 2006 1.0 1.2 2.0
Financial year to date 1.0 1.1 1.7
- combined March 2007 0.9 1.1 1.3
December 2006 1.0 1.2 2.0
Financial year to date 1.0 1.1 1.7
Gold produced
(kilograms)
- underground March 2007 - - -
December 2006 - - -
Financial year to date - - -
- surface March 2007 5,420 1,508 256
December 2006 5,562 1,605 709
Financial year to date 16,381 4,621 1,469
- total March 2007 5,420 1,508 256
December 2006 5,562 1,605 709
16,381 4,621 1,469
Financial year to date
Operating costs
(Rand per ton)
- underground March 2007 - - -
December 2006 - - -
Financial year to date - - -
- surface March 2007 79 116 338
December 2006 81 125 220
Financial year to date 79 116 249
- total March 2007 79 116 338
December 2006 81 125 220
Financial year to date 79 116 249
Operating Results International Operations
Australia
St Ives Agnew
Ore milled / treated
(000 ton)
- underground March 2007 319 101
December 2006 348 94
Financial year to date 1,063 315
- surface March 2007 1,425 223
December 2006 1,394 224
Financial year to date 4,121 671
- total March 2007 1,744 324
December 2006 1,742 318
Financial year to date 5,184 986
Yield
(grams per ton)
- underground March 2007 4.8 9.1
December 2006 5.3 12.7
Financial year to date 4.8 11.3
- surface March 2007 1.5 2.4
December 2006 1.5 2.0
Financial year to date 1.5 2.1
- combined March 2007 2.1 4.5
December 2006 2.2 5.2
Financial year to date 2.2 5.0
Gold produced
(kilograms)
- underground March 2007 1,518 924
December 2006 1,836 1,191
Financial year to date 5,079 3,552
- surface March 2007 2,197 525
December 2006 2,040 459
Financial year to date 6,349 1,388
- total March 2007 3,715 1,449
December 2006 3,876 1,650
11,428 4,940
Financial year to date
Operating costs
(Rand per ton)
- underground March 2007 416 662
December 2006 499 584
Financial year to date 436 564
- surface March 2007 138 296
December 2006 143 242
Financial year to date 153 226
- total March 2007 189 410
December 2006 214 343
Financial year to date 211 334
+ The acquisition of South Deep is effective from 1 December 2006.
Restated operating cost per ton on the assumption that Ore Reserve
Development (ORD) is fully expensed
Total Mine
Operations
- underground March 2007 723
December 2006 672
Financial year to date 668
- surface March 2007 101
December 2006 103
Financial year to date 102
- total March 2007 255
December 2006 247
Financial year to date 245
South African Operations
Total Driefontein Kloof
- underground March 2007 759 766 861
December 2006 696 754 803
Financial year to date 701 745 826
- surface March 2007 65 64 101
December 2006 66 65 86
Financial year to date 65 64 83
- total March 2007 588 463 804
December 2006 544 451 736
Financial year to date 547 448 748
South African International
Operations Operations
Beatrix South Total
Deep+
- underground March 2007 562 971 475
December 2006 479 1,078 517
Financial year to date 491 997 466
- surface March 2007 - 54 105
December 2006 - 50 107
Financial year to date - 53 105
- total March 2007 562 641 121
December 2006 479 614 126
Financial year to date 491 633 123
+ The acquisition of South Deep is effective from 1 December 2006.
Development results
Development values represent the actual results of sampling and no allowance
has been made for any adjustments which may be necessary when estimating ore
reserves. All figures below exclude shaft sinking metres.
Driefontein March 2007 quarter
Carbon
Reef Leader Main VCR
Advanced (m) 4,044 1,159 1,426
Advanced on reef (m) 726 378 222
Sampled (m) 579 303 84
Channel width (cm) 53 70 101
Average value - (g/t) 18.7 5.5 8.1
- (cm.g/t) 987 1 390 814
Driefontein December 2006 quarter
Carbon
Reef Leader Main VCR
Advanced (m) 4,955 1,025 1,474
Advanced on reef (m) 851 189 105
Sampled (m) 768 123 189
Channel width (cm) 88 65 95
Average value - (g/t) 19.6 10.7 10.9
- (cm.g/t) 1,720 696 1,039
Driefontein 9 months year to date F2007
Carbon
Reef Leader Main VCR
Advanced (m) 13,375 3,008 4,739
Advanced on reef (m) 2,570 730 573
Sampled (m) 2,289 567 525
Channel width (cm) 68 62 87
Average value - (g/t) 19.4 7.8 11.4
- (cm.g/t) 1,314 484 998
Kloof March 2007 quarter
Reef Libanon Kloof Main VCR
Advanced (m) 16 325 1,572 6,594
Advanced on reef (m) 16 45 468 991
Sampled (m) 15 39 408 912
Channel width (cm) 99 102 69 92
Average value - (g/t) 10.3 8.2 9.5 17.9
- (cm.g/t) 1,026 836 652 1,654
Kloof December 2006 quarter
Reef Libanon Kloof Main VCR
Advanced (m) - 289 1,729 6,922
Advanced on reef (m) - 28 288 1,078
Sampled (m) - 24 261 962
Channel width (cm) - 75 156 69
Average value - (g/t) - 5.5 6.5 26.7
- (cm.g/t) - 417 1,014 1,836
Kloof 9 months year to date F2007
Reef Libanon Kloof Main VCR
Advanced (m) 28 926 4,888 20,235
Advanced on reef (m) 16 127 1,196 3,389
Sampled (m) 15 120 1,107 2,853
Channel width (cm) 99 88 102 79
Average value - (g/t) 10.3 6.7 8.4 21.0
- (cm.g/t) 1,026 596 857 1,670
Beatrix March 2007 quarter
Reef Beatrix Kalkoenkrans
Advanced (m) 8,014 2,350
Advanced on reef (m) 1,305 132
Sampled (m) 858 123
Channel width (cm) 79 112
Average value - (g/t) 7.4 7.1
- (cm.g/t) 578 2 800
Beatrix December 2006 quarter
Reef Beatrix Kalkoenkrans
Advanced (m) 8,778 2,638
Advanced on reef (m) 1,488 163
Sampled (m) 1,017 84
Channel width (cm) 103 123
Average value - (g/t) 11.4 8.6
- (cm.g/t) 1,172 1,065
Beatrix 9 months year to date F2007
Reef Beatrix Kalkoenkrans
Advanced (m) 25,158 7,617
Advanced on reef (m) 4,309 351
Sampled (m) 3,345 270
Channel width (cm) 85 121
Average value - (g/t) 10.7 10.9
- (cm.g/t) 914 1,325
South Deep+ March 2007 quarter
Reef VCR Elsburg
Advanced (m) 199 827
Advanced on reef (m) 18 722
Sampled (m) 15 -
Channel width (cm) 118 -
Average value - (g/t) 0.4 6.2 3
- (cm.g/t) 42 4 -
South Deep+ December 2006 quarter
Reef VCR Elsburg
Advanced (m) 43 323
Advanced on reef (m) - 251
Sampled (m) - -
Channel width (cm) - -
Average value - (g/t) - 6.6
- (cm.g/t) - -
South Deep+ 4 months year to date F2007
Reef VCR Elsburg
Advanced (m) 242 1,150
Advanced on reef (m) 18 973
Sampled (m) 15 -
Channel width (cm) 118 -
Average value - (g/t) 0.4 6.3
- (cm.g/t) 42 -
1) Development is traversing thin, single and poorly developed Multiple Band
Carbon Leader reef.
2) Development at South shaft is on the margins of the ore body, while North
shaft is currently crossing a low grade trend facies.
3) Trackless development in the Elsburg reefs is evaluated by means of the
block model.
4) VCR not fully exposed in faulted area.
+ The acquisition of South Deep is effective from 1 December 2006.
Administration and corporate information
Corporate Secretary
CAIN FARREL
Telephone: (+27)(11) 644 2525
Facsimile: (+27)(11) 484 0626
e-mail: cain.farrel@goldfields.co.za
Registered offices
JOHANNESBURG
Gold Fields Limited
24 St Andrews Road
Parktown
Johannesburg
2193
Postnet Suite 252
Private Bag x 30500
Houghton 2041
Tel: (+27)(11) 644-2400
Fax: (+27)(11) 484-0626
LONDON
St James`s Corporate Services Limited
6 St James`s Place
London SW1A 1NP
United Kingdom
Telephone:(+44)(20) 7499 3916
Facsimile: (+44)(20) 7491 1989
American Depository
Receipts Transfer Agent
Bank of New York
Shareholder Relations
P O Box 11258
New York, NY20286 -1258
US toll-free telephone: (1)(888) 269 2377
e-mail: shareowner-svcs@mail.bony.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
Investor relations
NERINA BODASING
Telephone: (+27)(11) 644 2630
Facsimile: (+27)(11) 484 0639
e-mail: nerina.bodasing@goldfields.co.za
Media relations
WILLIE JACOBSZ
Telephone: (+27)(11) 644 2460
Facsimile: (+27)(11) 484 0639
e-mail: williej@goldfields.co.za
Transfer Secretaries
South Africa
Computershare Investor Services 2004
(Proprietary) Limited
Ground Floor
70 Marshall Street
Johannesburg, 2001
P O Box 61051
Marshalltown, 2107
Telephone: (+27)(11) 370 5000
Facsimile: (+27)(11) 370 5271
United Kingdom
Capita Registrars
Bourne House
34 Beckenham Road
Beckenham
Kent BR3 4TU
England
Telephone: (+44)(20) 8639 2000
Facsimile: (+44)(20) 8658 3430
WEBSITE
http://www.goldfields.co.za
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; decreases in the
market price of gold; hazards associated with underground and surface gold
mining; labour disruptions; changes in government regulations, particularly
environmental regulations; changes in exchange rates; currency devaluations;
inflation and other macro-economic factors; 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.
Directors
A J Wright (Chairman)
I D Cockerill * (Chief Executive Officer)
N J Holland * (Chief Financial Officer)
K Ansah#
A Grigorian J M McMahon *
J G Hopwood D M J Ncube
G Marcus R L Pennant-Rea *
P J Ryan * British
T M G Sexwale # Ghanaian
C I von Christierson Russian
Gold Fields Limited
Incorporated in the Republic of South Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN: ZAE000018123
Date: 03/05/2007 08:00:04 Produced by the JSE SENS Department.
