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GFI
GOGOF
GFI - Gold Fields Limited - Quarter And Year Ended 30 June 2007
Gold Fields Limited
Incorporated in the Republic of South Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN: ZAE000018123
QUARTER AND YEAR ENDED 30 JUNE 2007
News release
Year F2007 and Q4 F2007 results
- Reviewed preliminary results -
Q4 F2007
we deliver
Operating profit increases 6 per cent to R1.95 billion (US$274
million) generating net earnings of R528 million (US$74 million)
JOHANNESBURG. 1 August 2007 Gold Fields Limited (NYSE & JSE: GFI) today
announced net earnings for the June 2007 quarter of R528 million compared with
R370 million in the March 2007 quarter and R645 million for the restated June
quarter of 2006. In US dollar terms net earnings for the June 2007 quarter were
US$74 million compared with US$52 million in the March 2007 quarter and US$101
million for the restated June quarter of 2006.
June 2007 quarter salient features:
- Attributable gold production increased 3 per cent to 1,015,000 ounces;
- Average gold price increased marginally to R152,825 per kilogram and
increased 3 per cent in US dollar terms to $670 per ounce;
- Total cash costs and operating margin were similar at R92,273 per
kilogram (US$405 per ounce) and 38 per cent respectively.
Financial year salient features:
- Attributable gold produced of 4.02 million ounces for the year compared
with 4.07 million ounces in the previous year;
- Total cash costs at US$376 per ounce up 14 per cent due to significant
commodity price and labour cost increases
- Earnings increased 53 per cent from R1,544 million to R2,363 million and
from US$241 million to US$328 million;
- R20 billion acquisition of South Deep completed, together with successful
equity raising to meet funding requirements and to retire legacy gold
derivative;
- Growth and life extension projects of R6 billion commenced at Tarkwa,
Driefontein and Kloof.
- Cerro Corona progressing as scheduled with first concentrate shipment
scheduled for the March 2008 quarter.
Final dividend number 67 of 95 SA cents per share, giving a total dividend
of 185 SA cents per share for the year.
Ian Cockerill, Chief Executive Officer of Gold Fields, said:
"Gold Fields has delivered an improved set of results for the June quarter with
attributable production increasing 3 per cent to over 1 million ounces. All of
the production increases emanated from the South African operations despite a
number of holiday interruptions during the quarter while the international
operations maintained production levels. We were pleased to maintain unit costs
for the quarter despite ongoing input cost pressures. A marginal improvement in
the rand gold price received together with the higher production, resulted in
revenue increasing 2 per cent to R5.1 billion and operating profit improving 6
per cent to just under R2 billion.
For financial 2007 profitability increased despite stable production and the
challenges faced with rising costs across the industry. Revenue increased 35
per cent, operating profit increased 51 per cent and earnings remained robust
with a 53 per cent increase. This strong financial performance is indicative of
the leverage that an unhedged gold company, with a portfolio of quality assets,
can provide in a rising gold price environment. The quality of our asset base
remains key to being able to consistently deliver robust returns to our
shareholders through the cycle.
Financial 2008 will be a year of consolidation, bedding down the recent South
Deep transaction, bringing to account the Cerro Corona project and addressing
our investment in Venezuela. Increasing production and adherence to cost
control is fundamental to our shareholders so that they see the benefit of a
higher gold price in improved earnings growth."
Stock data
Number of shares in issue
- at end June 2007 652,158,066
- average for the quarter 652,113,557
Free Float 100%
ADR Ratio 1:1
Bloomberg / Reuters GFISJ / GFLJ.J
JSE Limited (GFI)
Range - Quarter ZAR107.20 ZAR142.00
Average Volume - Quarter 2,952,847 shares / day
NYSE (GFI)
Range - Quarter US$15.81 US$20.08
Average Volume - Quarter 3,707,142 shares / day
Salient features
South African Rand
Year ended Quarter
Restated
Restated
June June June March June
2006 2007 2006 2007 2007
Gold produced* 126,712 125,148 31,669 30,750 31,556 kg
Total cash costs 67,988 87,070 70,899 92,490 92,273 R/kg
Tons milled 49,366 52,166 12,651 13,382 12,817 000
Revenue 107,918 147,623 128,974 151,184 152,825 R/kg
Operating costs 193 234 199 237 257 R/ton
Operating profit 5,139 7,746 1,873 1,840 1,950 Rm
Operating margin 35 39 43 37 38 %
1,544 2,363 645 370 528 Rm
Net earnings
313 423 130 60 81 SA c.p.s.
1,492 2,188 635 228 506 Rm
Headline earnings
303 392 128 37 78 SA c.p.s.
Net earnings
excluding gains and 1,386 2,298 577 512 488 Rm
losses on foreign
exchange, financial 281 412 117 83 75 SA c.p.s.
instruments and
exceptional items
United States Dollars
Quarter Year ended
Restated
Restated
June March June June June
2007 2007 2006 2007 2006
Gold produced* oz (000) 1,015 989 1,018 4,024 4,074
Total cash costs $/oz 405 399 345 376 330
Tons milled 000 12,817 13,382 12,651 52,166 49,366
Revenue $/oz 670 652 628 638 524
Operating costs $/ton 36 33 31 32 30
Operating profit $m 274 255 293 1,076 803
Operating margin % 38 37 43 39 35
$m 74 52 101 328 241
Net earnings
US c.p.s. 11 8 20 59 49
$m 71 32 99 304 233
Headline earnings
US c.p.s. 11 5 20 54 47
Net earnings
excluding gains and $m 69 71 90 319 217
losses on foreign
exchange, financial US c.p.s. 11 11 18 57 44
instruments and
exceptional items
* Attributable All companies wholly owned except for Ghana (71.1%) and
Choco 10 (95%).
Change in accounting policy Ore Reserve Development (ORD) costs are
capitalised and amortised.
Health and safety
Gold Fields has improved its safety performance for the financial year. The
fatality rate reduced by 35 per cent to 0.19 per million man hours worked as
compared with F2006. We regret to report eleven fatal injuries during the June
quarter compared with six during the March quarter. All fatal accidents
occurred at the South African operations where Driefontein was particularly
hard hit with six fatalities. The mine has launched an all out communication
and re-training effort to reverse this trend. The fatal injury frequency rate
for the June quarter was 0.26 per million man hours worked, a regression on the
previous quarter`s figure of 0.15. The lost time injury frequency rate improved
from 9.99 to 8.96, the serious injury frequency rate improved marginally from
5.1 to 5.0 and the days lost frequency rate regressed marginally from 280 to
286 per million man hours worked.
The Group benchmarks its safety performance against Ontario benchmarks and is
pursuing the Mine Health and Safety Council milestones in South Africa.
Behavioral based interventions continue at all operations in the Group. The
South African operations have been audited for OHSAS 18001 certification. Kloof
has been certificated while Driefontein and Beatrix have been recommended for
certification. This adds to the certifications already in place at the Ghanaian
and Australian operations.
Financial review
Quarter ended 30 June 2007 compared with quarter ended 31 March 2007
Revenue
Attributable gold production increased by 3 per cent from 989,000 ounces in the
March quarter to 1,015,000 ounces in the June quarter. Attributable production
at the South African operations increased 4 per cent from 656,000 ounces to
685,000 ounces.
Attributable production at the international operations was similar at
330,000 ounces.
All the South African operations achieved an increase in production when
compared with the March quarter. Production at Driefontein increased from
251,200 ounces to 260,500 ounces as a result of an increase in underground tons
milled. Gold production at Kloof increased from 220,000 ounces to 229,600
ounces as a result of an increase in underground grades. At Beatrix, gold
production increased from 119,200 ounces to 125,700 ounces due to an increase
in tons milled. At South Deep, gold production increased from 66,700 ounces to
69,500 ounces as a result of an increase in underground tons milled but at a
slightly lower yield.
At the international operations, Australia showed an increase in gold
production due to an improved performance from Agnew. At Agnew, gold production
increased by 15 per cent for the quarter as a result of an increase in grade at
Songvang. Gold production at St Ives was unchanged quarter on quarter. Gold
production at Tarkwa decreased due to lower ore throughput, compared with the
record highs achieved last quarter. This was partially offset by an increase in
yield. Damang`s gold production decreased as a result of lower high-grade fresh
ore tonnages mined and available for processing, and mill down time due to
crusher failure. At Choco 10, gold production was 10 per cent lower and in line
with previous guidance as a result of continued water shortages, which reduced
plant throughput, as well as a strike which severely affected production in
June. The strike has been resolved and the rainy season has begun, which will
improve production during the September quarter. The ongoing strategy of
reducing reliance on rain water is continuing.
The average quarterly US dollar gold price increased from US$652 per ounce in
the March quarter to US$670 per ounce in the June quarter, a 3 per cent
increase. The average rand/US dollar exchange rate strengthened by 2 per cent
quarter on quarter, averaging R7.09, compared with R7.21 in the March quarter.
As a result of the above factors, the rand gold price improved from R151,184 to
R152,825 per kilogram, a 1 per cent increase. The Australian gold price
decreased quarter on quarter by 2 per cent, from A$828 to A$812 per ounce, as a
result of the 6 per cent stronger Australian dollar to the US dollar.
The increase in the rand gold price achieved, together with the increase in
production, resulted in revenue increasing in rand terms from R4,994 million
(US$693 million) to R5,113 million (US$719 million) quarter on quarter.
Operating costs
Operating costs increased by less than 4 per cent during the June quarter to
R3,290 million (US$462 million) compared with R3,165 million (US$462 million)
in the March quarter. Cash costs were virtually unchanged at R92,273 per
kilogram (US$405 per ounce). If we exclude South Deep, which is in a build-up
phase, cash costs would be R89,294 per kilogram and US$392 per ounce for the
June quarter and R88,822 per kilogram or US$383 per ounce in the March quarter.
At the South African operations operating costs increased from R2,012 million
(US$279 million) to R2,027 million (US$285 million), an increase of less than
one per cent mainly due to the increase in production.
Operating costs, including gold-in-process movements, at the international
operations amounted to R1,136 million (US$160 million), compared with R1,107
million (US$154 million) incurred in the March quarter. In US dollar terms
costs at Tarkwa decreased by US$9 million mainly due to a stockpile revaluation
included in gold-in-process for the quarter. At Damang, costs were marginally
higher quarter on quarter, with the higher power costs as a consequence of
increased on-site power generation partially offset by the lower mining
volumes. Costs at Choco 10 increased by US$3 million due to a reduced
gold-in-process credit and additional labour costs of US$1 million negotiated
as part of the current wage negotiations. At St Ives, operating costs in
Australian dollar terms including gold-in-process movements increased 16 per
cent. This was as a result of increased mill maintenance costs of A$3 million
(R18 million) and mining the more expensive pits, Leviathan and North Revenge,
following the completion of less expensive pits.
Agnew`s costs were unchanged quarter on quarter as the credit to
gold-in-process due to the stockpiling of lower grade Songvang ore due to mill
constraints offset the increased cost to mine these additional tons.
Operating margin
The net effect of the changes in revenue and costs, after taking int account
gold-in-process movements, was an operating profit of R1,950 million (US$274
million). This represented a 6 per cent increase when compared with the R1,840
million (US$255 million) achieved in the March quarter. The Group operating
margin increased from 37 per cent to 38 per cent. The margin at the South
African operations increased from 35 per cent to 37 per cent, while the margin
at the international operations decreased from 41 per cent to 39 per cent.
Amortisation
Amortisation increased from R704 million (US$98 million) in the March quarter
to R872 million (US$122 million) in the June quarter. At the South African
operations amortisation increased by R85 million (US$12 million) mainly at
Beatrix and South Deep due to a reassessment of ore reserve development
amortisation rates at Beatrix along with year end adjustments to amortisation
at South Deep. The increase at the International operations of R123 million
(US$18 million) was mainly at Agnew due to an increase in production at
Songvang which carries a higher cost than the rest of the complex.
Other
Net interest paid decreased from R112 million (US$15 million) in the March
quarter to R60 million (US$8 million) in the June quarter. This change reflects
an increase in interest received due to an increase in average cash balances on
hand, lower average borrowings due to the equity raising concluded in the
previous quarter and additional earnings from the Group`s associate, Rand
Refinery.
The loss on foreign exchange of R32 million (US$5 million), compares with a
loss of R380 million (US$53 million) in the March quarter. The loss in the June
quarter was mainly as a result of the forward cover costs incurred in relation
to a loan of US$528 million raised to retire the Western Areas gold derivative
which was assumed on takeover of this company. The forward costs are accounted
for over the period of the forward exchange contract. The March quarter`s loss
consists largely of forward cover costs of R13 million (US$2 million) on the
above foreign exchange contract, 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 and an exchange loss on the close out of the
Western Areas gold derivative amounting to 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 of the Western Areas gold derivative and
an unrealised exchange gain of R16 million (US$2 million) relating to a US
dollar denominated insurance receivable at South Deep.
The gain on financial instruments for the quarter at R39 million (US$5 million)
compares with a loss of R35 million (US$5 million) for the March quarter.
Included for the June quarter was a marked to market gain on share warrants of
R44 million (R38 million in March) and a loss of R4 million (gain of R14
million in March) being the final adjustment on the close out of the US$30
million dollar/rand forward purchase at the end of the March quarter.
Included in the March quarter was a gain of R133 million (US$18 million) on
gold purchases effected by Western Areas as part of the derivative close out
process offset by a loss of R105 million (US$14 million) on the Western Areas
gold derivative and 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.
Exploration
Exploration expenditure increased from R76 million (US$11 million) in the March
quarter to R89 million (US$13 million) in the June quarter. Please refer to the
Exploration and Corporate Development section for more detail.
Exceptional items
Exceptional gains decreased from R192 million (US$27 million) in the March
quarter to R35 million (US$5 million) in the June quarter.
In the June quarter the majority of this gain was from the profit on the sale
of houses and sundry other equipment at Beatrix and South Deep of R14 million
(US$2 million) and profit on the sale of redundant mining equipment at
Driefontein of R19 million (US$3 million). Gains in the March quarter resulted
from 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 R366 million (US$52 million) compared with
R262 million (US$36 million) in the March quarter.
This increase reflects the increase in profit before tax for the 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 R528 million
(US$74 million) or 81 SA cents per share (US$0.11 per share), compared with
R370 million (US$52 million) or 60 SA cents per share (US$0.08 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 R506 million (US$71 million) or 78
SA cents per share (US$0.11 per share), compared with earnings of R228 million
(US$32 million) or 37 SA cents per share (US$0.05 per share) last quarter.
Earnings excluding exceptional items as well as net gains and losses on foreign
exchange and financial instruments amounted to R488 million (US$69 million) or
75 SA cents per share (US$0.11 per share), compared with earnings of R512
million (US$71 million) or 83 SA cents per share (US$0.11 per share) reported
last quarter.
Cash flow
Cash inflow from operating activities for the quarter was R1,969 million
(US$276 million), compared with an outflow in the March quarter of R2,615
million (US$359 million). This quarter on quarter increase of R4,584 million
(US$635 million) is mostly due to the cost to settle the Western Areas gold
derivative of R3,894 million (US$535 million) in the March quarter, a release
of working capital of R406 million (US$56 million) and an increase in profit
before tax of R263 million (US$38 million).
Capital expenditure increased from R1,341 million (US$186 million) in the March
quarter to R2,190 million (US$306 million) in the June quarter. At the South
African operations capital expenditure increased from R591 million (US$82
million) in the March quarter to R878 million (US$122 million) in the June
quarter. This increase was due to expenditure on the 9 shaft project at
Driefontein which totalled R109 million (US$15 million), expenditure at South
Deep including the 95 level refrigeration project and equipping the ventilation
shaft of R164 million (US$23 million), development into the Vlakpan South area
at Beatrix of R8 million (US$1 million) and an increase in Ore Reserve
Development and various technical projects throughout the South African
operations in the June quarter. Expenditure on ore reserve development at
Driefontein, Kloof, Beatrix and South Deep accounted for R88 million (US$12
million), R93 million (US$13 million), R66 million (US$9 million) and
R13 million (US$2 million) respectively. Progress on the other major projects
continued, at Driefontein expenditure at the 1 and 5 shaft complex amounted to
R16 million (US$2 million) and R7 million (US$1 million) was incurred on the 4
shaft pillar extraction project. At Kloof, expenditure on the 4 sub-vertical
shaft amounted to R13 million (US$2 million) for the quarter and R24 million
(US$3 million) was incurred on the 1 shaft pillar extraction project. At
Beatrix, expenditure on the 3 shaft project amounted to R42 million (US$6
million) and R6 million (US$1 million) was incurred on development of the North
Block at West shaft.
At the Ghanaian operations, capital expenditure at Tarkwa increased from R152
million (US$21 million) to R345 million (US$48 million) quarter on quarter
mainly due to increased expenditure on the CIL expansion project which will
increase capacity from 4.2 million tons per annum to 12.0 million tons per
annum, and the Phase 5 heap leach project. Expenditure on these projects
amounted to R85 million (US$12 million) at the CIL expansion project and R62
million (US$9 million) on the heap leach project. Capital expenditure continued
on capital waste mining at the Teberebie cutback R60 million (US$8 million), on
the joint power project R35 million (US$5 million) and expansion of the
secondary fleet R35 million (US$5 million). Capital expenditure at Damang was
virtually unchanged at R63 million (US$9 million) with the majority of this
expenditure at the Damang cutback R50 million (US$7 million) and the new leach
tank at the plant R7 million (US$1 million).
At Choco 10 capital expenditure doubled from R17 million (US$2 million) to R33
million (US$5 million) with the majority of this expenditure on resource
definition exploration and the water exploration drilling project.
In Australia capital expenditure at St Ives was R155 million (A$26 million)
compared with R148 million (A$26 million) in the previous quarter with the
majority of this expenditure on mine development, a tailings dam upgrade and
exploration. At Agnew, capital expenditure doubled to R60 million (A$10
million), with the increase largely incurred on upgrading accommodation. The
majority of the balance was spent on development and exploration.
Capital expenditure at the Cerro Corona mine in Peru amounted to R650 million
(US$90 million) in the June quarter compared with R335 million (US$46 million)
in the March quarter. Refer to the Capital and Development Project section for
more detail.
Proceeds on the sale of assets amounted to R41 million (US$6 million) and
includes the sale of houses and sundry equipment at South Deep and Beatrix, and
redundant mining equipment at Driefontein.
Purchase of investments for the quarter amounted to R100 million (US$14
million) and includes the purchase of 1.57 million Sino Gold shares at a cost
of R55 million (US$8 million) which takes the Group`s ownership interest to
17.5 per cent on an undiluted basis, the exercising of 1.38 million Mvela
options for R23 million (US$3 million) and an investment in Emed Mining of R21
million (US$3 million).
Net cash flow from financing activities amounted to R337 million (US$18
million) which was the draw down on the Cerro Corona loan. The balance of the
loans received is offset by the loan retired during the quarter as a
consequence of a refinancing of existing debt at a cheaper cost.
Net cash outflow for the quarter was R26 million (US$37 million).
After accounting for a translation gain of R8 million (US$37 million), the cash
balance at the end of June was R2,310 million (US$323 million). The cash
balance at the end of March was R2,328 million (US$323 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
March June
Quarter ended F2005 F2006* 2007* 2007**
Driefontein:
Life of mine head grade as per
published declarations
8.1 8.0 8.0 8.9
Life of mine head grade adjusted
for estimated metallurgical
recoveries 7.8 7.8 7.8 8.6
Driefontein (underground yields
achieved) 8.3 8.1 7.6 7.6
Kloof:
Life of mine head grade as per
published declarations 10.5 10.0 10.0 10.2
Life of mine head grade adjusted
for estimated metallurgical
recoveries*** 10.2 9.7 9.7 9.9
Kloof (underground yields
achieved) 9.1 8.7 8.0 8.3
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 4.6 4.5
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) - - 6.1 5.7
* Based on reserve statement at 31 December 2005, except South Deep which is
based on the reserve statement as at 30 June 2006. The acquisition of South
Deep was effective from 1 December 2006.
** Based on the reserve statement as at 31 December 2006.
*** Kloof`s life of mine head grade as adjusted for estimated metallurgical
recoveries, is higher than that currently achieved due to comparatively low
volumes being mined from the high grade main shaft pillar.
The increase in the Life of Mine head grade is due to an increase in the
paylimit, which results in a lower tonnage at high grades, and an improved
dilution.
The lower yields compared with the Life of mine estimated yield was as a
result of a low mine call factor in the March quarter and mining in lower
grade areas in the June quarter. Steps are being taken to address this
problem in financial 2008.
Project 100+
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. 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 further projects are being developed in line with the Group
energy strategy. The current projects alone, 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 have exceeded 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 in line with plan, with the manufacture of locomotives underway
along with the preparation of battery charging bays and the training of
personnel. The project will deliver long term cost savings from lower operating
costs and from the higher efficiency battery locomotives. An added benefit is
improved environmental conditions underground. An underground rail track
up-grade project has also commenced which will improve tramming efficiency
underground.
The Pump Efficiency Monitoring project is targeted at redirecting maintenance
efforts at water pumps that are less efficient. This will deliver savings in
financial 2008 due to pumps operating at higher efficiency and lower pump
repair costs.
Project Beyond
Gold Fields Project Beyond set out at the beginning of financial year 2005 to
achieve contracted savings of around R200 to R300 million over three years.
Financial year end 2007 represents the Project Beyond three year milestone and
it can be reported that the cumulative stretch target of R311 million total
contracted benefits has been achieved. Performance initiatives in respect of
explosives have added a further R70 million in the form of additional revenue
since the start of this specific project 18 months ago.
Over this same three year period extreme global commodity cost pressures were
experienced due to major growth in demand and significant increases in key
commodity input cost drivers like steel, copper, fuel, services, food, timber
etc. with these input increases reaching record highs during 2006 and 2007.
This resulted in an increase in price inflation during financial 2007, where
the South African PPI index showed an increase of more than 11 per cent
year-on-year for May and June 2007. Due to the Project Beyond benefits achieved
Gold Fields was able to realise price increases of PPI less 3 per cent over
each of the last 3 years.
During the June quarter an estimated annualised R29 million benefits were
achieved. Around R26 million of these benefits came from added explosives
performance by way of improved square meters delivery. The total cumulative
benefits delivered for financial year 2007 amounts to R111 million. This is
made up of various projects which include explosives efficiency and
performance, rail upgrade savings, improved scrap sales, drill steel controls
optimisation, as well as savings on engineering contracts and improved
standards.
Although Project Beyond has successfully reached its three year targeted
milestone, the focus for financial 2008 will remain on continued improvement
initiatives around total cost leadership and productivity enhancement. Gold
Fields believes the way to sustain healthy margins and buffer real inflation
pressures will be through effective total cost management and investment in
continued margin optimisation initiatives (explosives, performance, etc.). The
cost optimisation drive will continue during financial year 2008, with specific
attention on South Deep and in particular, a review of potential synergies
between South Deep`s procurement activities and those of the rest of the local
operations.
Global Integrated Supply Chain and Strategic Sourcing Optimisation During the
June quarter global integrated supply chain initiatives in Australia and Peru
delivered further total cost benefits of around US$2.5 million. Project Beyond
Bullion in Australia achieved benefits through re-tendering (i.e. insurance,
charter flights, vehicle spares, high pressure hoses and fittings, and cleaning
services), productivity process implementation, continuous Alliance mining
partnering, total cost initiatives and multi-year contract benefits. In
addition, the project procurement team in Peru recorded over US$1 million in
import duty savings for the Cerro Corona project.
For the international operations the cumulative total cost benefits recorded
for this financial year (F2007), including both new and carry over contracted
cost benefits, added up to US$15 million. Cumulative total cost benefits
estimated for the last three years in addition to the R311 million achieved at
the South African operations stands at around US$27-30 million. Similar to
Project Beyond`s lowered baseline in South African, Australian and Ghanaian
operations have in the last three years achieved increases year-on-year under
country specific inflation (country inflation was around 3-4 per cent in
Australia and 8-10 per cent in Ghana). This represents an exemplary result
given the market conditions driving earth moving tyre shortages and related
costs increases, higher contractor services, labour shortages and wage
increases together with significant increases in drilling and cyanide rates,
and self-generating power costs in Ghana specifically.
In Australia total cost optimisation focus will continue during financial year
2008 through continuing Project Beyond Bullion, added priority cost control and
support in Ghana and efficiency optimisation focus in Venezuela. In Addition,
with Peru going operational during this period there will be increased focus on
establishing optimal input cost baselines and exploring larger group and
regional synergies across the South American operations.
South African Operations
Driefontein
June March
2007 2007
Gold produced - kg 8,103 7,814
- 000`ozs 260.5 251.2
Yield - underground - g/t 7.6 7.6
- combined - g/t 4.9 4.8
Total cash costs - R/kg 80,538 82,506
- US$/oz 353 356
Gold production increased by 4 per cent from 251,200 ounces in the March
quarter to 260,500 ounces in the June quarter. The increase in gold production
was mainly due to an increase of 5 per cent in underground tonnage from 930,000
to 981,000. The underground yield was unchanged at 7.6 grams per ton. Surface
tonnage decreased from 704,000 to 661,000 as lower grade surface tonnage was
displaced with higher grade underground tonnage.
Main development activity for the quarter improved marginally but footwall
drives continue to be impacted by seismicity at 1 and 5 shafts. On reef
development has improved for the third straight quarter and the on reef value
for the quarter was in line with expectation at 1,843 centimeters gram per ton.
Operating costs increased by 1 per cent from R677 million (US$94 million) to
R684 million (US$96 million) mainly due to the increased production. Total cash
costs decreased 2 per cent in rand terms from R82,506 to R80,538 per kilogram.
In US dollar terms, total cash costs decreased 1 per cent from US$356 per ounce
to US$353 per ounce.
Operating profit increased by 7 per cent from R510 million (US$71 million) in
the March quarter to R548 million (US$77 million) in the June quarter due to
the higher revenue.
Ongoing optimisation of the 9 shaft project has led to a change of scope and
increased the capital vote from R3.2 billion to R4.1 billion. This change of
scope minimises project timing and technical risk through replacing a series of
four ventilation raise bore holes with a single sub vertical ventilation shaft.
The project still provides attractive returns at current gold prices and
continues to be robust at lower prices.
Capital expenditure increased from R196 million (US$27 million) to R298 million
(US$41 million). The major portion of the increase in expenditure was on the 9
shaft project and ore reserve development. Shaft sinking on the 9 shaft project
is planned to commence during the December 2007 quarter.
Gold production for the September quarter is forecast to be similar to the June
quarter. The outlook for unit cost is dependent on the outcome of the annual
wage increases. Capital expenditure for the coming 6 months will increase in
line with the build up of shaft sinking activity at 9 shaft.
Kloof
June March
2007 2007
Gold produced - kg 7,141 6,843
- 000`ozs 229.6 220.0
Yield - underground - g/t 8.3 8.0
- combined - g/t 7.7 7.4
Total cash costs - R/kg 87,019 90,180
- US$/oz 382 389
Gold production at Kloof increased by 4 per cent from 220,000 ounces in the
March quarter to 229,600 ounces in the June quarter.
This was due to an increase in the underground yield from 8.0 grams per ton to
8.3 grams per ton driven by an improved operating performance at 7 shaft where
volumes and values mined increased. The increase in yield was due to a 4 per
cent increase in the value of the ore broken and an improved recovery rate.
Total ore processed increased from 920,000 to 931,000 tons due to an increase
in surface tonnage. Gold from surface remained insignificant at about 1 per
cent of production.
Development at Kloof increased 15 per cent for the financial 2007 year and
improvement continued during the quarter. On reef development is however not
yet at planned levels or values and there is a drive to primarily push double
back raises at 4 sub vertical shaft.
Operating costs increased marginally from R644 million (US$89 million) in the
March quarter to R648 million (US$91 million) in the June quarter. As a result
of the higher gold production, the total cash cost decreased by 4 per cent from
R90,180 to R87,019 per kilogram. In US dollar terms total cash costs decreased
by 2 per cent from US$389 to US$382 per ounce. Operating profit increased from
R390 million (US$54 million) in the March quarter to R439 million (US$62
million) in the June quarter as a result of the increased gold revenue.
Capital expenditure at R209 million (US$29 million) increased by 8 per cent
when compared with the previous quarter`s expenditure of R193 million (US$27
million). The increase in expenditure was mainly on improvements to hostel
accommodation and underground transport costs.
Gold production for the September quarter is forecast at similar levels, with
costs dependent on the wage increases effective in July. Capital expenditure is
planned to reduce in the coming quarter with lower expenditures on the 1 sub
vertical shaft pillar, the KEA and the 4 sub vertical shaft projects.
Beatrix
June March
2007 2007
Gold produced - kg 3,909 3,708
- 000`ozs 125.7 119.2
Yield - underground - g/t 4.5 4.6
Total cash costs - R/kg 95,805 99,434
- US$/oz 420 429
Gold production at Beatrix increased by 5 per cent from 119,200 ounces in the
March quarter to 125,700 ounces in the June quarter. Tons milled increased from
807,000 tons to 864 000 tons in the June quarter as production volumes started
to return to historical levels, partially offset by the various holiday periods
during the quarter. The yield regressed slightly from 4.6 to 4.5 grams per ton
as a result of slightly lower volumes from the higher grade areas. The mine
call factor decline reported last quarter is being reversed and the mine
achieved 87 per cent as against the 78 per cent reported in the March quarter.
Beatrix improved development by 22 per cent for financial 2007 and this
continued in the current reporting quarter. On reef development has shown a
steady improvement over the last 5 quarters and values for the quarter were on
plan at 1,017 centimeter gram per ton. Four shaft on reef values improved to
1,638 centimeter grams per ton. These improvements will increase ore reserve
flexibility which in turn will provide for more selective mining.
Operating costs quarter on quarter increased by 1 per cent, from R388 million
(US$54 million) to R392 million (US$55 million). The increase in costs was
mainly due to the higher production volumes and increased input costs. Total
cash costs decreased 4 per cent from R99,434 per kilogram in the March quarter
to R95,805 per kilogram in the June quarter, due to the increase in gold
production and continued cost controls. In US dollar terms total cash costs
decreased 2 per cent from US$429 to US$420 per ounce.
Beatrix posted an operating profit of R199 million (US$28 million) for the
quarter compared with R175 million (US$24 million) in the March quarter as a
result of the increased gold production.
Capital expenditure increased from R124 million (US$17 million) to R207 million
(US$29 million) in the June quarter and includes ore reserve development,
progress on the 3 shaft project and capital development at the West and South
shafts.
Gold production in the September quarter is forecast to be similar to the June
quarter. Unit costs will be dependent on the outcome of the annual wage
increases. Capital expenditure will reduce during the coming quarter.
South Deep
June March
2007 2007
Gold produced - kg 2,163 2,075
- 000`ozs 69.5 66.7
Gold sold - kg 2,163 2,321
- 000`ozs 69.5 74.6
Yield - underground - g/t 5.7 6.1
- combined - g/t 4.9 4.3
Total cash costs - R/kg 135,368 141,017
- US$/oz 594 608
At South Deep gold produced increased marginally from 66,700 ounces to 69,500
ounces. Gold sales were down quarter on quarter due to the sale of 246
kilograms (8,000 ounces) in the March quarter which was included in inventory
at the end of the December quarter. Total cash costs decreased from R141,017 to
R135,368 per kilogram for the June quarter. Operating profit increased from R11
million (US$2 million) to R28 million (US$4 million) as a result of the
increase in gold produced and sold during the quarter and the higher gold
price.
Milled tonnage decreased from 483,000 tons to 437,000 tons due to a reduction
in the low grade stockpiles treated. Underground volumes milled increased by 18
per cent from 309,000 to 366,000 tons. The mining mix within the drift and
bench horizon and the intersecting of complex geological features within the
VCR has negatively impacted underground grades. Underground yields were thus
marginally lower than the March quarter`s 6.1 grams per ton, at 5.7 grams per
ton. Increased mining volumes are forecast to continue in the September
quarter. The 95 1 west workshop is in the process of being commissioned which
will then allow for the commissioning of a new mining fleet into the long Hole
Stoping area. This provides another ore source to the mine and increase mining
flexibility. The Long Hole Stoping programme is scheduled to commence in
October.
A full review of the below 95 level development and equipping, the ventilation
shaft deepening and the 94 level refrigeration plant and surface exploration
drilling projects was completed during the quarter, culminating in approval by
the Gold Fields Board of these revised projects. The capital votes for these
project are R2.0 billion, R660 million, R163 million and R132 million
respectively.
Capital expenditure doubled quarter on quarter to R164 million (US$23 million)
and included expenditure primarily on the Twin shaft ventilation deepening and
the 94 level refrigeration projects. Progress on the 94 level refrigeration
project improved significantly during the quarter. This important project is
required to reduce underground temperatures. It is planned to complete this
project during the June 2008 quarter. However, it should be noted that a
thorough review of the life of mine refrigeration and ventilation requirement
is underway The crucial below 95 level capital development project includes the
commencement and completion of all the Twin shaft ancillary infrastructure and
includes station, ore passes, ore pass silos, loading level, pump station,
clear water and settlers development and equipping. In addition, multiple ends
are to be equipped and developed to the east on 100, 105 and 110 levels to
access the massive Elsburg packages. The adjudication of the contractors is
underway and work on this project is anticipated to commence in the latter half
of the September quarter. A 40 month surface exploration programme for 10
boreholes and 3 long inclined boreholes has commenced and will cover both the
phase 1 and phase 2 areas of interest.
Staffing in the trackless section of the mine has been problematic.
High turnover rates are being experienced as the labour market for these skills
in South Africa is highly competitive. This has largely been addressed and the
mechanised section has been re-staffed with skills.
The integration of South Deep into Gold Fields has provided synergies that are
anticipated to translate into savings over the next year. SAP has been
implemented successfully to synchronise with the Gold Fields platform and the
Gold Fields commercial service division has been adopted as the primary service
provider thus providing scope for synergies.
Gold production in the September quarter is forecast to increase only
marginally due to infrastructure bottlenecks underground.
These bottlenecks relate largely to a shortage in the number of orepasses and
associated boxholes which should be addressed by the end of the next quarter.
Cash costs in the short term will be dependent on the outcome of the wage
negotiations. Capital costs will increase on the back of the current suite of
projects.
International Operations
Ghana
Tarkwa
June March
2007 2007
Gold produced - 000`ozs 170.5 174.3
Yield - Heap leach - g/t 0.8 0.7
- CIL plant - g/t 1.5 1.4
- Combined - g/t 0.9 0.9
Total cash costs - US$/oz 308 356
For the June quarter Tarkwa processed 5.64 million tons and produced 170,500
ounces of gold at an average yield of 0.94 grams per ton. This compares with
the record tonnage of 5.89 million tons processed at a yield of 0.92 grams per
ton, producing 174,300 ounces in the March quarter.
Total tons mined, including capital stripping, decreased marginally from 28.7
million tons to 28.5 million tons for the current quarter. Ore tons moved
decreased slightly to 5.47 million tons, compared with 5.65 million tons in
the March quarter. The mined grade of 1.25 grams per ton in the
June quarter is an improvement over the 1.21 grams per ton mined in the
March quarter. The overall strip ratio for the quarter was 4.22 which is
marginally higher than the 4.09 achieved in the March quarter. The strip
ratio will continue to increase over the next few years as the pits deepen.
Total feed to the heap leach sections was 4.21 million tons at a head grade of
1.04 grams per ton compared with 4.37 million tons at a head grade of 1.0 gram
per ton for the March quarter. The heap leach sections produced 101,100 ounces
compared with the 103,700 ounces achieved in the March quarter. There was a net
gold-in-process decrease of 317 ounces. The total feed to the CIL plant was
1.43 million tons compared with 1.52 million tons in the March quarter. The CIL
plant produced 69,400 ounces in the June quarter compared with 70,600 ounces in
the previous quarter.
Operating costs, including gold-in-process movements, decreased from US$62
million (R446 million) to US$53 million (R374 million) in the June quarter. The
decrease was mainly due to a stock revaluation of US$9 million (R64 million)
which related to low grade mined ore stockpiles. As a result, total cash costs
decreased from US$356 per ounce to US$308 per ounce. Operating cost per ton
processed, which excludes gold-in-process movements, was US$11.06 compared with
the US$10.96 in the March quarter.
Operating profit was 17 per cent higher at US$61 million (R437 million)
compared with US$52 million (R371 million) in the March quarter, with the
higher gold price offsetting the lower gold production together with the effect
of the revaluation of the mined stockpiles.
Capital expenditure more than doubled to US$48 million (R345 million) for the
quarter due to expenditure on the Phase 5 heap leach project and the CIL
expansion project of US$9 million and US$12 million respectively. Expenditure
on the joint power project and pre-stripping at the Teberebie cutback
continued.
Gold production for the September quarter will be slightly lower than the June
quarter. Cash costs will increase in the September quarter compared with the
June quarter, as the June quarter included the gold-in-process credit from the
revaluation of the low grade stockpile.
Damang
June March
2007 2007
Gold produced - 000`ozs 39.3 48.5
Yield - g/t 1.0 1.1
Total cash costs - US$/oz 572 454
Gold production for the June quarter was 39,300 ounces, which is 19 per cent
down on the March quarter`s 48,500 ounces. This was due to a premature failure
of the eccentric bushing of the primary crusher, resulting in a major shutdown
and several lost days of crushing high-grade fresh ore. The softer lower grade
B3 stockpile was fed directly into the mill resulting in lower throughputs and
recoveries and thus lower gold production.
Total tons mined, including capital stripping, amounted to 7.4 million tons
marginally above plan, compared with 8.1 million tons in the March quarter. Ore
mined amounted to 657,000 tons compared with 811,000 tons during the March
quarter. The average mined grade increased to 1.47 grams per ton compared with
1.28 grams per ton last quarter. The overall strip ratio increased as planned
to 10.24 from 9.04 during the March quarter.
Mill throughput for the quarter was 1.24 million tons at a head grade of 1.06
grams per ton, which is 10 per cent lower than the March quarter`s 1.38 million
tons processed at a head grade of 1.18 grams per ton. Yield also decreased
10 per cent from 1.1 to 1.0 grams per ton. Metallurgical recovery also
decreased during the quarter, due to low CIL tank availability.
Operating costs, including gold-in-process movements, increased
from US$22 million (R162 million) to US$23 million (R163 million).
The on-site power generation (in line with national load shedding requirements)
was the main contributor to the higher costs. The total cost per ton processed
at US$18.68 was higher than the previous quarter`s US$16.11 per ton due to the
increase in costs and lower volumes processed. Total cash costs increased from
US$454 per ounce to US$572 per ounce, reflecting the lower gold production and
higher costs.
Operating profit for the quarter at US$4 million (R24 million) was lower than
the US$9 million (R65 million) achieved in the March quarter.
Capital expenditure was unchanged quarter on quarter at US$9 million (R63
million) with the majority of this expenditure incurred in mining the Damang
pit cutback and the construction of the seventh carbon-in-leach tank at the
processing plant.
Gold production is expected to increase by about 5 per cent in the September
quarter compared with the June quarter. Pressure on operating costs will
continue due to in-house power generation as a result of national load shedding
requirements in the country but on a total cash cost per ounce basis costs
should reduce quarter on quarter.
Venezuela
Choco 10
June March
2007 2007
Gold produced - 000`ozs 7.4 8.2
Yield - g/t 1.6 1.3
Total cash costs - US$/oz 912 575
Gold production for the quarter decreased 10 per cent from 8,200 ounces to
7,400 ounces, mainly due to the lack of water to run the mill as indicated in
previous guidance and a strike which impacted on production for almost 3 weeks
during June.
Mining continued in the Pisolita, Coacia and the Rosika pits. Mined quantities
were slightly lower than anticipated mainly as a result of lower than expected
machinery availability, torrential rain in June and the industrial action. The
grade mined for the quarter was 1.49 grams per ton compared with 1.58 last
quarter. Lower grade material was stockpiled separately, allowing a processed
head grade of 1.65 grams per ton compared with 1.61 grams per ton in the March
quarter.
Total mill throughput for the quarter decreased from 191,000 tons to 147,000
tons due to the water shortage. The water problem abated at the end of June due
to significant rainfall providing water to the dam and ground water for a
series of water wells.
Operating costs, including gold-in-process movements, amounted to US$9 million
(R65 million) compared with US$6 million (R45 million) in the March quarter.
This increase was mainly due to labour cost increases resulting from
negotiations between management and the union, though the negotiations are
still to be finalised. Rentals on mining equipment increased due to downtime on
equipment which required servicing during the quarter. Total cash costs
increased from US$575 per ounce to US$912 per ounce driven by the low level of
production and the additional costs referred to earlier. An operating loss of
US$3 million (R19 million) was realised compared with a loss of US$1 million
(R6 million) in the March quarter.
Capital expenditure amounted to US$5 million (R33 million) for the quarter
compared with US$2 million (R17 million) in the March quarter. The majority of
this expenditure was on resource definition exploration which has identified an
additional shallow mineralised zone in the hanging wall of the Coacia deposit.
Drilling is continuing to define the extent of this mineralisation which should
have a short to medium-term impact on mine design and contribute to reserve
growth. The permit to extract water from the Yuruari River has not yet been
granted by Government departments and construction of the pipeline cannot
commence without this permit. Discussions are ongoing with the relevant
government ministries in Venezuela.
Gold production for the September quarter is expected to increase to around
15,000 ounces, provided the rainy season continues to deliver a good level of
water to the containment reservoirs and absent any further industrial relation
issues.
Australia
St Ives
June March
2007 2007
Gold produced - 000`ozs 119.5 119.4
Yield - Heap leach - g/t 0.5 0.5
- Milling - g/t 3.1 2.9
- Combined - g/t 2.4 2.1
Total cash costs - A$/oz 591 511
- US$/oz 491 401
Gold production for the quarter was similar to last quarter`s at 119,500
ounces. Gold production from the Lefroy mill was unchanged at 111,300 ounces.
Higher grade ore from underground and open pit sources was offset by lower
tonnage milled due to a major mill shutdown during the quarter and a release of
3,000 ounces from gold in circuit. Heap leach production at 8,200 ounces this
quarter was similar to the previous quarter.
During the quarter 3.4 million bank cubic metres (BCMs) of ore and waste, which
includes waste classified as capital for accounting purposes, were mined from
the open pit operations compared with capital waste peaked at 9.0 in the June
quarter compared with 8.5 previously with the commencement of the cutbacks of
the Leviathan, Pluton, Revenge and Cave Rocks pits, and on-going development of
the North Revenge pit. Open pit operations produced 1.0 million tons of ore for
the quarter, compared with 0.7 million tons for the previous quarter. The open
pit ore grade decreased to 2.0 grams per ton compared with 2.3 grams per ton in
the previous quarter. The majority of ore was mined from the lower grade North
Revenge pit together with the Leviathan cutback and Thunderer pits. The Delta
North pit was completed during the quarter.
Underground operations produced 297,000 tons of ore at 5.7 grams per ton for
the quarter compared with 317,000 tons at 5.5 grams per ton in the previous
quarter. The majority of this decrease was due to the completion of mining of
the Conqueror reserve. This reduced the production from the Argo complex from
137,000 tons at 5.9 grams per ton to 114,000 tons at 6.4 grams per ton this
quarter.
Operating costs, including gold-in-process movements, increased to A$74 million
(R433 million) from A$63 million (R358 million) in the March quarter. This
increase was due to an increase in maintenance costs at the Lefroy mill of A$3
million (R18 million) and an increase in mining costs from mining the more
expensive Leviathan and North Revenge cutbacks, compared with mining the now
depleted Delta pit in the March quarter. As a result of the above factors,
total cash costs increased from A$511 per ounce (US$401 per ounce) in the March
quarter to A$591 per ounce (US$491 per ounce) for the June quarter.
Operating profit decreased from A$36 million (R202 million) to A$23 million
(R137 million) due to the lower gold price compounded with increased costs.
Unlike the US dollar gold price, which increased quarter on quarter, the gold
price in Australian dollars at St Ives decreased from A$828 to A$810 per ounce
quarter on quarter. This decrease was due to the 6 per cent stronger Australian
dollar when compared with the US dollar.
Capital expenditure at A$26 million (R155 million) was unchanged quarter on
quarter. Mine development capital of A$11 million (R66 million) included
commencement of development at the Leviathan pit cutback and Belleisle
underground mine and continuation of development of the North Revenge pit and
Argo underground mine. Processing capital works cost A$8 million (R49 million)
which included 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$5 million (R30 million) for the
quarter.
Gold production for the September quarter is expected to decrease by about 15
per cent compared with the June quarter due to the completion of the Delta
North and Thunderer pits, and the underground Conqueror operation. These
operations will be replaced by lower grade ore from the existing pits.
Production should return to prior quarter`s levels in the second half of
financial 2008 as new underground sources come on stream. Cash costs should
increase marginally due to the lower production in September.
Agnew
June March
2007 2007
Gold produced - 000`ozs 53.5 46.6
Yield - g/t 4.9 4.5
Total cash costs - A$/oz 476 426
- US$/oz 395 334
Gold production for the June quarter was 53,500 ounces, which was 15 per cent
higher than the March quarter`s 46,600 ounces.
This production increase was due to the combined yield increasing from 4.5
grams per ton to 4.9 grams per ton quarter on quarter.
This increase was due to improved grades at Songvang and a more optimised mill
feed blend between Songvang and higher grade underground production.
Ore mined from underground declined in the June quarter to 77,000 tons at a
grade of 10.0 grams per ton compared with 98,000 tons at 9.7 grams per ton in
the March quarter. This was mainly due to reduced tonnages from Kim South as
stopes came on line slightly behind schedule due to a change in mining method.
However, this was offset by a substantial increase in volumes mined at the
Songvang open pit, which increased from 451,000 tons at a grade of 2.2 grams
per ton in the March quarter to 525,000 tons at a grade of 3.6 grams per ton in
the June quarter. Approximately half of the tons mined from Songvang were
stockpiled due to processing constraints particularly given the need to give
priority in the processing of higher grade underground material. This
stockpiling resulted in a significant gold-in-process credit for the quarter.
The increase in production from Songvang was achieved despite a two week
interruption for grade control drilling. The strip ratio decreased from 3.7 in
the March quarter to 1.6 in the June quarter as the pit nears completion,
estimated at the end of August.
Operating costs, including gold-in-process movements, were unchanged at A$17
million (R101 million). The increase in mining costs at Songvang, where costs
increased due to an increase in waste normalisation charges in line with higher
mining volumes was offset by increased gold-in-process credits as highlighted
above. Total cash costs increased from A$426 per ounce (US$334 per ounce) to
A$476 per ounce (US$395 per ounce) for the quarter.
The increase in cash costs is due to the inclusion of higher waste
normalisation charges at Songvang in line with increased production from the
pit and lower overall ounces in revenue from the pit than originally
anticipated. Operating profit increased from A$22 million (R122 million) in the
March quarter to A$27 million (R157 million) due to the increase in gold
revenue.
Capital expenditure doubled to A$10 million (R60 million) in the June quarter.
The majority of this increase was due to progress payments for the upgrading of
mine accommodation, combined with increased capital development at Kim Lode.
Capitalised exploration expenditure increased by A$3 million (R17 million)
quarter on quarter.
Gold produced during the September quarter is expected to be slightly lower
than the June quarter. Cash costs should remain steady quarter on quarter.
Year ended 30 June 2007 compared with year ended 30 June 2006
Group attributable gold production decreased 1 per cent from 4.07 million
ounces for the year ended June 2006 to 4.02 million ounces produced in
financial 2007.
At the South African operations gold production decreased from
2.66 to 2.65 million ounces. Driefontein decreased by 12 per cent to 1.02
million ounces mainly due to lower underground and surface grades. Kloof
increased marginally to 0.92 million ounces, with lower surface and
underground grades offset by higher tonnage. Gold production at Beatrix
decreased by 9 per cent to 0.54 million ounces due to lower grades. Part of
this shortfall was offset by South Deep, acquired on 1 December 2006, which
produced 0.17 million ounces for the 7 months to end June.
At the international operations total gold production decreased from
1.69 million ounces in financial 2006 to 1.64 million ounces in financial 2007.
In Ghana, Damang`s gold production decreased 20 per cent to 0.19 million
ounces due to a reduction of available high grade fresh ore tonnages mined
and processed. Tarkwa was marginally lower at 0.70 million ounces. In
Australia, St Ives and Agnew both decreased by about 3 per cent to 0.49
and 0.21 million ounces respectively. The decrease at St Ives was due to a
reduction of high grade underground ore from Junction and East Repulse,
which was replaced with lower grades surface ore. At Agnew, the decrease
was due to an increase in ore mined from the lower grade Songvang open
pit, which replaced depleted high grade underground ore. At Choco 10, gold
production doubled to 0.056 million ounces as financial 2006 only included
production from the acquisition date of 1 March 2006.
Revenue increased by 35 per cent in rand terms (increased 20 per cent in US
dollar terms) from R14,605 million (US$2,282 million) to R19,693 million
(US$2,735 million). The higher average gold price of R147,623 per kilogram
(US$638 per ounce) compared with R107,918 per kilogram (US$524 per ounce)
achieved in F2006 more than offset the lower production.
Operating costs, including gold-in-process movements, increased from R9,525
million (US$1,488 million) to R12,193 million (US$1,694 million), an increase
of R2,688 million (US$206 million) or 28 per cent. This increase was mainly due
to the acquisition of South Deep which added R720 million (US$100 million) for
the seven months of operation, Choco 10 added a further R233 million (US$31
million) in its first full year, R420 million was due to translating costs at
the weaker rand, with the majority of the balance due to above inflation wage
increases in South Africa, the significant price increase of important inputs
namely fuel, steel and cyanide to mention but a few at all the operations,
increased power costs in Ghana and the increased royalty at St Ives.
Exchange rates weakened from an average of US$1 = R6.40 to US$1 = R7.20, or 13
per cent and from A$1 = R4.79 to A$1 = R5.65, 18 per cent year on year. Added
to this was the increase in volumes required to maintain gold production as
grades on average decreased by 4 per cent year on year for the Group. Total
cash costs for the Group in rand terms, year on year, increased 28 per cent
from R67,988 per kilogram (US$330 per ounce) to R87,070 per kilogram (US$376
per ounce) due to the above factors.
At the South African operations operating costs, increased by 23 per cent from
R6,105 million to R7,478 million for the year. The increase excluding South
Deep was 11 per cent. This was due to the above inflation wage increases,
an increase in on-reef development and the increase in
certain input costs such as steel and food, partially offset by the cost saving
initiatives implemented over the year. Unit cash costs increased 18 per cent
from R73,802 to R86,908 per kilogram due to the inclusion of South Deep, which
averaged R137,689 per kilogram for the seven months, and the cost increases at
the other South African operations and the lower production. Excluding South
Deep cash costs increased from R73,802 to R83,511 per kilogram an increase of
13 per cent. At the international operations unit cash costs increased by 22
per cent from US$309 per ounce to US$377 per ounce, mainly due to higher power
costs in Ghana due to load shedding, increased maintenance costs of the mining
fleet at Tarkwa, increased costs at Agnew due to increased mining and
processing of the Songvang open pit and the combined effect of higher stripping
ratios and increased cost of inputs driven by the commodities boom.
Operating profit increased from R5,139 million (US$803 million) to R7,746
million (US$1,076 million), with the Group benefiting from the higher gold
price in all currencies.
After accounting for taxation and sundry items net earnings were R2,363 million
(US$328 million) for the year, compared with R1,544 million (US$241 million) in
the previous year. The increase in earnings was largely due to the 51 per cent
increase in operating profit.
Earnings excluding gains and losses on foreign exchange, financial instruments
and exceptional items amounted to R2,298 million (US$319 million) this year
compared with R1,386 million (US$217 million) in financial 2006.
Capital and development projects
Cerro Corona
During the quarter community relationships remained stable on the Cerro Corona
project site. While community employment and contracting levels are significant
at this point in time, these will decline as construction activities tail off
through the latter part of the calendar year, presenting a possible catalyst
for social discontent. Strategies have been developed to reduce the impact of
this. The Community stakeholder participation remains high with over 50 local
contractors and suppliers while almost 1,000 of the 1600 people working on
site are from local communities.
During the quarter the focus of mining activities shifted from surface mining
or oxide and waste to the generation of construction materials for various site
structures. The mining fleet was transferred from the Cerro Corona mine to one
of three rock quarries within the project boundary. Over the next two quarters
the mining fleet will focus on production of construction materials, from both
the surface mine and quarries on the project site, for haul road and tailing
embankment construction. A total of 1.45 million tons was excavated from the
Cerro Corona mine this quarter (March 2.3 million tons), of which approximately
93 per cent was overburden, with the balance being oxide ore for stockpiling.
Surface mine development has progressed to the point that further mining of
sulfide ore and overburden will only take place upon commissioning of the
concentrator early in calendar 2008. Mining progress is no longer on the
critical path for project start up. Unit mining cost performance, at US$1.75
per ton was in line with expectation.
During the quarter engineering efforts shifted to the Cerro Corona mine site in
support of field construction efforts. On the procurement front, save for one,
all major construction packages have now been awarded and are in process.
Design of the tailing embankment has been finalised. Recognising the scale and
complexity of the tailing facility, rigorous review has taken place internally
and externally, including an Independent Geotechnical and Tailing Dam Review
Board (IGTRB).
On the construction front, 3 major milestone were achieved by
quarter end:
- The large haul road from the plant site down to the tailings dam
embankment was completed.
- Stripping and preparation of the tailings embankment footprint
and keyway was complete and placement of the under drain material commenced
as did grouting.
- The SAG mill shell was positioned on its 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 construction commitments reached US$300 million
(March US$220 million) while total capital expenditure in the quarter was US$90
million (March US$46 million). Although cost pressures remain extreme the total
capital construction cost for the project remains forecast at approximately
US$343 million.
Exploration and corporate
development
Gold Fields completed drilling on seven projects during the quarter on its
greenfield exploration sites. At the Essakane project in Burkina Faso (GFI
earning 60 per cent), the bankable feasibility study is progressing with
completion estimated before the end of the calendar year. Several exploration
targets were tested on the extensive land holdings in the district by air core
drilling through shallow cover.
On the Sankarani project (GFI earning 65 per cent) in south- western Mali,
presently operated by partner Glencar Mining plc (AIM: "GEX"), reverse
circulation ("RC") drilling was completed on Kabaya South and Sanioumale
targets. Under the terms of the option agreement, Gold Fields has earned the
right to an effective 25 per cent interest in the project through its interest
in Glencar BVI, a holding company which owns 95 per cent of the Malian company
that owns the asset. At the 80 per cent owned Kisenge project in the southern
DRC, a second phase of diamond drilling began in late May. This phase is
intended to systematically test the seven kilometer Mpokoto anomaly at Kisenge.
Mpokoto is one of fourteen identified targets on the project of which seven
will be drilled in this next programme.
In Kyrgyzstan, Gold Fields has an option to joint venture the Talas project via
its equity placement in Lero Gold Corp (TSX-V: "LER").
Geophysical work is in progress and a 2,700 metre diamond drilling programme
will follow.
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
mineralised trends but we have yet to attain consistent intersections defining
an underground minable resource. The programme is 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"), an aircore and RC
drilling programme was started during the quarter. Our partners (GXL) completed
a successful float of Clancy Exploration, their subsidiary that holds this
project and raised A$5 million. Most drilling in southeastern Australia was
curtailed during June due to extensive rain making access difficult.
In the El Callao district in Venezuela, adjacent to Choco 10, drilling was
completed on the El Choco and Avila targets and commenced on the La Pinta and
La Victoria targets. On the Dominican Republic joint venture with partner
GoldQuest Mining Corp (TSX Venture: "GQC"), geophysical and geochemical work
continues to develop further drill targets.
On 22 June 2007 Gold Fields` wholly-owned subsidiary Gold Fields Exploration
B.V. ("Gold Fields Exploration") exercised warrants to acquire 1,200,000 common
shares of GoldQuest Mining Corp for an exercise price of CAN$0.30 per common
share. This represents approximately 2.43 per cent of the outstanding common
shares of GoldQuest. Following its exercise of these warrants, Gold Fields
Exploration holds approximately 10.85 per cent of the outstanding common shares
of GoldQuest. While Gold Fields Exploration has no current intention to acquire
additional securities of GoldQuest in the immediate future, it may increase or
decrease its interest in GoldQuest at prices which it determines to be
attractive, at any time.
Corporate
Gold Fields announces Mineral Resources and Ore
Reserves
On 6 June 2007 Gold Fields published its Mineral Resource and Ore Reserve
Statement for the 12 month period to 31 December 2006.
Total attributable precious metal Mineral Resources, inclusive of Ore Reserves,
increased by 40 per cent to 251.7 million ounces and total attributable Ore
Reserves increased by 44 per cent to 93.8 million ounces.
Both numbers are net of 12 months` depletion and include the acquisition
of South Deep gold mine.
The Resource and Reserve Statement has been audited by a leading independent
global mining consultancy and is SAMREC compliant and aligned to the
requirements of the Sarbanes-Oxley Act.
The full Mineral Resource and Ore Reserve declaration Supplement is available
on the Gold Fields website.
Gold Fields acquires an additional 16.2 million ounces
adjacent to South Deep
An agreement has been reached in terms of which JCI Limited (JCI) and Randgold
& Exploration Company Limited (R&E) will relinquish certain rights which they
have to ground contiguous to South Deep Gold Mine (South Deep) for a
consideration of R400 million (US$60 million) plus VAT.
The agreement is subject to, inter alia, the approval of shareholders
representing at least 50 per cent of the shares entitled to vote at general
meetings of both JCI and R&E. The JCI and R&E shareholders meetings are
expected to take place during the last week of September.
Irrevocable undertakings of support for the proposed transaction have been
received from shareholders representing 57 per cent of JCI shares and 52 per
cent of R&E shares entitled to vote at the respective meetings.
The transaction, if implemented, will result in Western Areas (a 100 per cent
subsidiary of Gold Fields Limited) owning 74 per cent of a company which holds
the exploration rights to the ground in question, with Peotona Gold, a black
empowerment company, holding the balance.
It is estimated that the contiguous ground, immediately to the East of South
Deep, contains an indicated resource of approximately 16.2 million ounces of
gold at a cut off grade of 5 grams per ton. This ground could be accessed
through the existing South Deep Infrastructure.
Awards
Gold Fields has for the fifth consecutive year received top awards from the
Investment Analyst of Southern Africa. The Group was given the Squirrel award
for 2006 for best reporting and communication in the resources, diamonds,
precious metals and minerals category. We also again received the Samrec/IASA
award for best reporting of mineral resources and reserves according to
the Samrec code.
In addition, our Damang mine in Ghana received the Thana Environmental
Protection Agency Award for the third consecutive year for being the most
environmentally committed mining company in the country.
New Executive appointments
Vice President Exploration
Following the resignation of Craig Nelsen from the position of head of
exploration, Tommy McKeith will be returning to Gold Fields with effect from 1
October 2007 as a replacement for Craig.
Prior to his position as Chief Executive Officer at Troy Resources NL, Tommy
was employed at Gold Fields as Vice President, Business Development. His
experience at Gold Fields included sixteen years in business development and
mine and exploration geology in the international mining sector.
Investor Relations
Because of the growing importance of the United States market to Gold Fields
and the recent departure of Cheryl Martin, who used to be our Investor
Relations representative there, we have decided to redeploy Willie Jacobsz to
head up our investor and media relations effort in North America. He will be
based in Boston.
As a consequence, Willie will relinquish executive responsibility for the
Corporate Affairs and Communication portfolios to Nerina Bodasing.
Nerina will also retain her current portfolio of Investor Relations for the
Group. Her new title will be Senior Vice President: Head of Investor Relations
and Corporate Affairs, which is a promotion for Nerina.
Dividend
In line with the Company`s policy of paying out 50 per cent of its
earnings, subject to investment opportunities, a final dividend has been
declared payable to shareholders as follows:
- final dividend number 67: 95 SA cents per share
- last date to trade cum-dividend: Friday 17 August 2007
- sterling and US dollar conversion date: Monday 20 August 2007
- trading commences ex-dividend: Monday 20 August 2007
- record date: Friday 24 August 2007
- payment date: Monday 27 August 2007
Share certificates may not be dematerialised or rematerialised between Monday,
20 August 2007 and Friday, 24 August 2007, both dates inclusive.
Change in accounting policy
Capitalisation of costs relating to Ore Reserve Development (ORD) On 1 July
2006, the Group changed its accounting policy for 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 IAS 8
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 - R155.5 million
F2005 - R143.2 million
F2004 - R397.3 million
The impact of the change in accounting policy for the June 2007 quarter, is a
net credit to earnings of R39 million. The net credit to earnings in the March
2007 quarter amounted to R75 million. For the June 2006 quarter the impact was
a net credit to earnings of R41 million.
The corresponding entry for the above adjustments was to increase
property, plant and equipment and deferred tax liabilities.
Provisional accounting for South Deep
The acquisition of South Deep has been accounted for on a provisional basis in
accordance with IFRS 3. This has resulted in the recognition of goodwill
amounting to R4.4 billion.
Outlook
Gold production for the September quarter is forecast to be similar to the June
quarter, while the level of cash costs is dependent on the outcome of the wage
negotiations at the South African operations.
Basis of accounting
The unaudited results for the quarter and year have been prepared on the
International Financial Reporting Standards (IFRS) basis. The detailed
financial, operational and development results for the June 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.
Audit review
The year-end results have been reviewed in terms of Rule 3.23 of the listing
requirements of JSE Limited by the Company`s auditors, PricewaterhouseCoopers
Inc. Their unqualified review opinion is available upon request from the
Company Secretary and on the web site.
I.D. Cockerill
Chief Executive Officer
1 August 2007
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand Quarter
Restated
June March June
2007 2007 2006
Revenue 5,112.6 4,994.2 4,369.0
Operating costs, net 3,163.0 3,154.1 2,495.8
- Operating costs 3,289.7 3,165.2 2,518.5
- Gold inventory change (126.7) (11.1) (22.7)
Operating profit 1,949.6 1,840.1 1,873.2
Amortisation and depreciation 871.5 704.3 573.0
Net operating profit 1,078.1 1,135.8 1,300.2
Net interest (paid)/received (59.5) (111.9) (5.0)
(Loss)/gain on foreign exchange (32.1) (379.7) 40.0
Gain/(loss) on financial instruments 39.3 (35.2) 23.8
Other expenses (10.1) (26.8) (55.6)
Exploration (89.1) (75.6) (94.0)
Profit before tax and exceptional items 926.6 506.6 1,209.4
Exceptional gain 35.2 192.0 6.2
Profit before taxation 961.8 698.6 1,215.6
Mining and income taxation 365.9 261.9 491.7
- Normal taxation 140.2 232.5 227.0
- Deferred taxation 225.7 29.4 264.7
Net profit 595.9 436.7 723.9
Attributable to:
- Ordinary shareholders 527.5 370.4 645.2
- Minority shareholders 68.4 66.3 78.7
Exceptional items:
Profit on sale of investments 5.6 182.3 10.0
Profit/(loss) on sale of assets 32.4 10.0 (0.9)
Impairment of assets (2.8) - -
Other - (0.3) (2.9)
Total exceptional items 35.2 192.0 6.2
Taxation (14.0) (49.2) 2.8
Net exceptional items after tax and
minorities 21.2 142.8 9.0
Net earnings 527.5 370.4 645.2
Net earnings per share (cents) 81 60 130
Diluted earnings per share 77 57 120
Headline earnings 506.3 227.6 634.6
Headline earnings per share (cents) 78 37 128
Net earnings excluding gains and losses on
foreign exchange, 488.4 512.0 576.8
financial instruments and exceptional items
Net earnings per share excluding gains and
losses on foreign 75 83 117
exchange, financial instruments and
exceptional items (cents)
Gold sold managed kg 33,454 33,034 33,875
Gold price received R/kg 152,825 151,184 128,974
Total cash costs R/kg 92,273 92,490 70,899
South African Rand Year ended
Restated
June June
2007 2006
Revenue 19,693.1 14,604.7
Operating costs, net 11,947.4 9,465.9
- Operating costs 12,193.2 9,524.7
- Gold inventory change (245.8) (58.8)
Operating profit 7,745.7 5,138.8
Amortisation and depreciation 3,001.6 2,074.6
Net operating profit 4,744.1 3,064.2
Net interest (paid)/received (181.3) 5.7
(Loss)/gain on foreign exchange (151.1) 120.5
Gain/(loss) on financial instruments (24.5) (24.0)
Other expenses (129.5) (186.9)
Exploration (295.2) (247.9)
Profit before tax and exceptional items 3,962.5 2,731.6
Exceptional gain 243.7 63.9
Profit before taxation 4,206.2 2,795.5
Mining and income taxation 1,572.2 1,023.9
- Normal taxation 883.8 578.3
- Deferred taxation 688.4 445.6
Net profit 2,634.0 1,771.6
Attributable to:
- Ordinary shareholders 2,362.5 1,544.1
- Minority shareholders 271.5 227.5
Exceptional items:
Profit on sale of investments 193.0 40.3
Profit/(loss) on sale of assets 53.5 23.6
Impairment of assets (2.8) -
Other - -
Total exceptional items 243.7 63.9
Taxation (69.0) (11.9)
Net exceptional items after tax and minorities 174.7 52.0
Net earnings 2,362.5 1,544.1
Net earnings per share (cents) 423 313
Diluted earnings per share 398 298
Headline earnings 2,187.8 1,492.1
Headline earnings per share (cents) 392 303
Net earnings excluding gains and losses on foreign
exchange, 2,298.4 1,385.9
financial instruments and exceptional items
Net earnings per share excluding gains and losses on
foreign 412 281
exchange, financial instruments and exceptional items
(cents)
Gold sold managed kg 133,401 135,332
Gold price received R/kg 147,623 107,918
Total cash costs R/kg 87,070 67,988
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
United States Dollars Quarter
Restated
June March June
2007 2007 2006
Revenue 718.5 692.6 682.7
Operating costs, net 444.4 437.3 389.9
- Operating costs 462.0 438.9 393.5
- Gold inventory change (17.6) (1.6) (3.6)
Operating profit 274.1 255.3 292.8
Amortisation and depreciation 122.3 97.7 89.6
Net operating profit 151.8 157.6 203.2
Net interest (paid)/received (8.4) (15.4) (0.8)
(Loss)/gain on foreign exchange (4.5) (52.5) 6.5
Gain/(loss) on financial instruments 5.4 (4.8) 3.5
Other expenses (1.5) (3.7) (8.7)
Exploration (12.5) (10.5) (14.7)
Profit before tax and exceptional items 130.3 70.7 189.0
Exceptional gain 5.0 26.5 1.0
Profit before taxation 135.3 97.2 190.0
Mining and income taxation 51.6 36.4 76.8
- Normal taxation 20.0 32.2 35.5
- Deferred taxation 31.6 4.2 41.3
Net profit 83.7 60.8 113.2
Attributable to:
- Ordinary shareholders 74.1 51.6 100.9
- Minority shareholders 9.6 9.2 12.3
Exceptional items:
Profit on sale of investments 0.9 25.2 1.6
Profit/(loss) on sale of assets 4.5 1.4 (0.1)
Impairment of assets (0.4) - -
Other - (0.1) (0.5)
Total exceptional items 5.0 26.5 1.0
Taxation (2.0) (6.8) 0.4
Net exceptional items after tax and
minorities 3.0 19.7 1.4
Net earnings 74.1 51.6 100.9
Net earnings per share (cents) 11 8 20
Diluted earnings per share 11 7 18
Headline earnings 71.1 31.9 99.2
Headline earnings per share (cents) 11 5 20
Net earnings excluding gains and losses
on foreign exchange, 68.9 71.0 90.1
financial instruments and exceptional
items
Net earnings per share excluding gains
and losses on foreign 11 11 18
exchange, financial instruments and
exceptional items (cents)
South African rand/United States dollar
conversion rate 7.09 7.21 6.39
South African rand/Australian dollar
conversion rate 5.89 5.66 4.77
Gold sold managed ozs (000) 1,076 1,062 1,089
Gold price received $/oz 670 652 628
Total cash costs $/oz 405 399 345
United States Dollars Year ended
Restated
June June
2007 2006
Revenue 2,735.2 2,282.0
Operating costs, net 1,659.4 1,479.0
- Operating costs 1,693.5 1,488.2
- Gold inventory change (34.1) (9.2)
Operating profit 1,075.8 803.0
Amortisation and depreciation 416.9 324.2
Net operating profit 658.9 478.8
Net interest (paid)/received (25.2) 0.9
(Loss)/gain on foreign exchange (21.0) 19.1
Gain/(loss) on financial instruments (3.4) (4.0)
Other expenses (18.0) (29.2)
Exploration (41.0) (38.7)
Profit before tax and exceptional items 550.3 426.9
Exceptional gain 33.8 10.0
Profit before taxation 584.1 436.9
Mining and income taxation 218.4 160.0
- Normal taxation 122.8 90.4
- Deferred taxation 95.6 69.6
Net profit 365.7 276.9
Attributable to:
- Ordinary shareholders 328.0 241.4
- Minority shareholders 37.7 35.5
Exceptional items:
Profit on sale of investments 26.8 6.3
Profit/(loss) on sale of assets 7.4 3.7
Impairment of assets (0.4) -
Other - -
Total exceptional items 33.8 10.0
Taxation (9.6) (1.9)
Net exceptional items after tax and minorities 24.2 8.1
Net earnings 328.0 241.4
Net earnings per share (cents) 59 49
Diluted earnings per share 55 47
Headline earnings 303.8 233.1
Headline earnings per share (cents) 54 47
Net earnings excluding gains and losses on foreign
exchange, 319.2 216.5
financial instruments and exceptional items
Net earnings per share excluding gains and losses on
foreign 57 44
exchange, financial instruments and exceptional items
(cents)
South African rand/United States dollar conversion rate 7.20 6.40
South African rand/Australian dollar conversion rate 5.65 4.79
Gold sold managed ozs(000) 4,289 4,351
Gold price received $/oz 638 524
Total cash costs $/oz 376 330
Balance sheet
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand United States Dollars
Restated Restated
June June June June
2007 2006 2007 2006
Property, plant and equipment 41,970.8 24,316.1 5,870.0 3,272.7
Goodwill 4,458.9 - 623.7 -
Non-current assets 627.7 484.0 87.8 65.1
Investments 2,272.4 2,483.9 317.8 334.3
Current assets 6,061.2 4,351.2 847.7 585.6
- Other current assets 3,751.1 2,733.7 524.6 367.9
- Cash and deposits 2,310.1 1,617.5 323.1 217.7
Total assets 55,391.0 31,635.2 7,747.0 4,257.7
Shareholders` equity 37,106.3 20,001.5 5,189.7 2,692.0
Deferred taxation 5,979.6 5,551.3 836.3 747.1
Long-term loans 6,170.5 2,021.6 863.0 272.1
Environmental rehabilitation
provisions 1,414.1 1,079.3 197.8 145.3
Post-retirement health care
provisions 21.0 18.0 2.9 2.4
Current liabilities 4,699.5 2,963.5 657.3 398.8
- Other current liabilities 3,980.9 2,641.8 556.8 355.5
- Current portion of
long-term loans 718.6 321.7 100.5 43.3
Total equity and liabilities 55,391.0 31,635.2 7,747.0 4,257.7
South African rand/US dollar
conversion rate 7.15 7.43
South African rand/Australian
dollar conversion rate 6.06 5.44
Condensed statement of changes in equity
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand United States Dollars
Restated Restated
June June June June
2007 2006 2007 2006
Balance at the beginning of
the financial year 20,001.5 16,534.1 2,692.0 2,467.8
Effect of change in
accounting policy
capitalisation of ORD costs - 540.5 - 80.7
Issue of share capital 78.7 1.3 10.9 0.2
Increase in share premium 18,398.2 116.7 2,561.5 18.2
Loss on transacting with
minorities (3,559.9) - (495.9) -
Net revaluation surplus
arising on acquisition of
subsidiaries - 168.7 - 27.3
Marked to market valuation
of listed investments 205.7 431.7 28.6 67.4
Dividends paid (1,141.4) (477.7) (159.7) (74.8)
Increase in share-based
payment reserve 90.0 67.6 12.5 10.6
Profit attributable to
ordinary shareholders 2,362.5 1,544.1 328.0 241.4
Profit attributable to
minority shareholders 271.5 227.5 37.7 35.5
Increase/(decrease) in
minority interests 253.7 28.5 (13.0) 4.1
Currency translation
adjustment and other 145.8 818.5 187.1 (186.4)
Balance as at the end
of June 37,106.3 20,001.5 5,189.7 2,692.0
Reconciliation of headline earnings with net earnings
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand United States Dollars
Restated Restated
June June June June
2007 2006 2007 2006
Net earnings 2,362.5 1,544.1 328.0 241.4
Profit on sale of investments (193.0) (40.3) (26.8) (6.3)
Taxation effect of profit on sale
of investments 48.6 1.9 6.8 0.3
Profit on sale of assets (53.5) (23.6) (7.4) (3.7)
Taxation effect of profit on sale
of assets 20.4 10.0 2.8 1.6
Other after tax adjustments 2.8 - 0.4 (0.2)
Headline earnings 2,187.8 1,492.1 303.8 233.1
Headline earnings per share cents 392 303 54 47
Based on headline earnings as
given above divided by
558,259,686 - F2007 (492,922,941 -
F2006) 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
June March June
2007 2007 2006
Cash flows from operating activities 1,969.3 (2,615.1) 1,742.3
Profit before tax and exceptional
items 926.6 506.6 1,209.4
Exceptional items 35.2 192.0 6.2
Amortisation and depreciation 871.5 704.3 573.0
Change in working capital 274.0 (131.8) 134.3
Taxation paid (136.7) (177.6) (81.3)
Settlement of Western Areas hedge - (3,893.8) -
Other non-cash items (1.3) 185.2 (99.3)
Dividends paid - (585.5) (45.9)
Ordinary shareholders - (585.5) -
Minority shareholders in subsidiaries - - (45.9)
Cash flows from investing activities (2,331.8) (1,419.8) (1,795.0)
Capital expenditure additions (2,190.4) (1,341.4) (875.8)
Capital expenditure proceeds on
disposal 41.1 11.0 10.3
Purchase of subsidiaries (25.0) (30.9) (21.7)
Purchase of investments (99.9) (349.6) (851.2)
Proceeds on the disposal of
investments 11.3 305.7 1.6
Environmental and post-retirement
health care payments (68.9) (14.6) (58.2)
Cash flows from financing activities 336.8 5,500.4 37.4
Loans received 5,324.1 4,439.9 -
Loans repaid (5,003.0) (9,035.6) -
Minority shareholders loans repaid - - (33.6)
Shares issued 15.7 10,096.1 71.0
Net cash (outflow)/inflow (25.7) 880.0 (61.2)
Translation adjustment 8.0 35.3 177.2
Cash at beginning of period 2,327.8 1,412.5 1,501.5
Cash at end of period 2,310.1 2,327.8 1,617.5
South African Rand Year ended
Restated
June June
2007 2006
Cash flows from operating activities 2,344.7 4,284.1
Profit before tax and exceptional items 3,962.5 2,731.6
Exceptional items 243.7 63.9
Amortisation and depreciation 3,001.6 2,074.6
Change in working capital (168.8) (23.8)
Taxation paid (714.7) (351.0)
Settlement of Western Areas hedge (3,893.8) -
Other non-cash items (85.8) (211.2)
Dividends paid (1,141.4 (477.7)
Ordinary shareholders (1,130.9) (394.5)
Minority shareholders in subsidiaries (10.5) (83.2)
Cash flows from investing activities (15,194.6) (6,261.0)
Capital expenditure additions (6,095.8) (2,641.6)
Capital expenditure proceeds on disposal 63.4 40.0
Purchase of subsidiaries (8,732.7) (2,559.3)
Purchase of investments (648.4) (1,046.2)
Proceeds on the disposal of investments 326.1 18.2
Environmental and post-retirement health care
payments (107.2) (72.1)
Cash flows from financing activities 14,684.7 673.0
Loans received 18,821.9 986.7
Loans repaid (14,194.2) (287.5)
Minority shareholders loans repaid (90.1) (144.2)
Shares issued 10,147.1 118.0
Net cash (outflow)/inflow 693.4 (1,781.6)
Translation adjustment (0.8) 24.1
Cash at beginning of period 1,617.5 3,375.0
Cash at end of period 2,310.1 1,617.5
United States Dollars Quarter
Restated
June March June
2007 2007 2006
Cash flows from operating activities 276.1 (358.9) 267.9
Profit before tax and exceptional item-s 130.3 70.7 189.0
Exceptional items 5.0 26.5 1.0
Amortisation and depreciation 122.3 97.7 89.6
Change in working capital 37.8 (18.2) 21.0
Taxation paid (19.1) (26.6) (17.1)
Settlement of Western Areas hedge - (534.6) -
Other non-cash items (0.2) 25.6 (15.6)
Dividends paid - (81.4) (7.2)
Ordinary shareholders - (81.4) -
Minority shareholders in subsidiaries - - (7.2)
Cash flows from investing activities (331.2) (198.7) (280.7)
Capital expenditure additions (306.4) (186.1) (137.0)
Capital expenditure proceeds on disposal 5.7 1.5 1.7
Purchase of subsidiaries (8.5) (5.9) (3.5)
Purchase of investments (14.2) (48.4) (133.0)
Proceeds on the disposal of investments 1.8 42.2 0.2
Environmental and post-retirement health
care payments (9.6) (2.0) (9.1)
Cash flows from financing activities 17.9 756.0 9.7
Loans received 718.0 609.4 3.8
Loans repaid (708.1) (1,249.8) -
Minority shareholders loans repaid - - (5.2)
Shares issued 8.0 1,396.4 11.1
Net cash (outflow)/inflow (37.2) 117.0 (10.3)
Translation adjustment 37.0 3.9 (11.1)
Cash at beginning of period 323.3 202.4 239.1
Cash at end of period 323.1 323.3 217.7
United States Dollars Year ended
Restated
June June
2007 2006
Cash flows from operating activities 333.7 669.6
Profit before tax and exceptional item-s 550.3 426.9
Exceptional items 33.8 10.0
Amortisation and depreciation 416.9 324.2
Change in working capital (23.4) (3.7)
Taxation paid (97.4) (54.8)
Settlement of Western Areas hedge (534.6) -
Other non-cash items (11.9) (33.0)
Dividends paid (159.7) (74.8)
Ordinary shareholders (158.2) (61.8)
Minority shareholders in subsidiaries (1.5) (13.0)
Cash flows from investing activities (2,110.4) (995.6)
Capital expenditure additions (846.6) (412.8)
Capital expenditure proceeds on disposal 8.8 6.3
Purchase of subsidiaries (1,212.9) (417.1)
Purchase of investments (90.1) (163.5)
Proceeds on the disposal of investments 45.3 2.8
Environmental and post-retirement health care payments (14.9) (11.3)
Cash flows from financing activities 2,011.5 108.5
Loans received 2,593.1 158.0
Loans repaid (1,979.4) (44.9)
Minority shareholders loans repaid (11.5) (23.0)
Shares issued 1,409.3 18.4
Net cash (outflow)/inflow 75.1 (292.3)
Translation adjustment 30.3 6.3
Cash at beginning of period 217.7 503.7
Cash at end of period 323.1 217.7
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 June 2007
Western Areas Limited Gold Derivative Structure
On 21 May 2007 the JP Morgan bridge loan facility was repaid, through
refinancing with Barclays Bank and ABN AMRO bank as follows: US$500 million at
5.6561 per cent per annum and US$51 million at 5.6061 per cent per annum. The
first interest payment date on the new facility is 6 August 2007.
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 March 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$550.8 million forward cover have been accounted for
under (loss)/gain on foreign exchange.
Year ended 30 June 2008
Forward purchases:
Amount (US dollars) - 000`s 550,800
Average rate forward - (ZAR/US$) 7.3279
The marked to market value of the US$550.8 million forward cover was negative
by R77 million (US$10.8 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 structure expired on 30
June 2007.
Subsequent to year end, Gold Fields Ghana Holdings (BVI) Ltd purchased a three
month Asian style option in respect of 15 million litres of diesel, starting 1
July 2007. The call option resulted in a premium of US$0.3 million, paid
upfront, at a strike rate of US$0.5572 per litre.
Total cash costs
Gold Institute Industry Standard
All figures are in Rand millions unless otherwise stated
Total Mine
Operations
Operating costs(1)
June 2007 3,289.7
March 2007 3,165.2
Financial year ended 12,193.2
Gold-in-process and
inventory change*
June 2007 (90.4)
March 2007 (0.8)
Financial year ended (173.9)
Less:
June 2007 9.3
Rehabilitation costs
March 2007 8.8
Financial year ended 35.7
Production taxes
June 2007 2.3
March 2007 2.6
Financial year ended 18.6
General and admin
June 2007 143.0
March 2007 139.8
Financial year ended 538.7
Exploration costs
June 2007 11.8
March 2007 12.9
Financial year ended 41.3
Cash operating costs
June 2007 3,032.9
March 2007 3,000.3
Financial year ended 11,385.0
Plus: June 2007 2.3
Production taxes
March 2007 2.6
Financial year ended 18.6
Royalties
June 2007 51.7
March 2007 52.4
Financial year ended 211.6
TOTAL CASH COSTS(2)
June 2007 3,086.9
March 2007 3,055.3
Financial year ended 11,615.2
Plus: June 2007 819.9
Amortisation*
March 2007 638.3
Financial year ended 2,792.0
Rehabilitation
June 2007 9.3
March 2007 8.8
Financial year ended 35.7
June 2007 3,916.1
TOTAL PRODUCTION
COSTS(3)
March 2007 3,702.4
Financial year ended 14,442.9
Gold sold
June 2007 1,075.6
- thousand ounces
March 2007 1,062.1
Financial year ended 4,288.9
TOTAL CASH COSTS
June 2007 405
- US$/oz
March 2007 399
Financial year ended 376
TOTAL CASH COSTS
June 2007 92,273
- R/kg
March 2007 92,490
Financial year ended 87,070
TOTAL PRODUCTION
June 2007 514
COSTS
March 2007 483
- US$/oz
Financial year ended 468
South African Operations
Total Driefontein Kloof
Operating costs(1)
June 2007 2,027.4 683.7 648.0
March 2007 2,012.0 677.3 643.5
Financial year ended 7,478.1 2,671.5 2,536.1
Gold-in-process and
inventory change*
June 2007 - - -
March 2007 35.0 - -
Financial year ended 13.2 - -
Less:
June 2007 6.8 3.0 2.0
Rehabilitation costs
March 2007 6.4 3.0 2.0
Financial year ended 26.0 12.0 8.0
Production taxes
June 2007 2.3 (0.2) 2.6
March 2007 2.6 0.2 2.5
Financial year ended 18.6 5.8 10.1
General and admin
June 2007 79.3 28.1 24.6
March 2007 82.8 29.6 24.4
Financial year ended 304.8 115.6 97.6
Exploration costs
June 2007 - - -
March 2007 - - -
Financial year ended - - -
Cash operating costs
June 2007 1,939.0 652.8 618.8
March 2007 1,955.2 644.5 614.6
Financial year ended 7,141.9 2,538.1 2,420.4
Plus: June 2007 2.3 (0.2) 2.6
Production taxes
March 2007 2.6 0.2 2.5
Financial year ended 18.6 5.8 10.1
Royalties
June 2007 - - -
March 2007 - - -
Financial year ended - - -
TOTAL CASH COSTS(2)
June 2007 1,941.3 652.6 621.4
March 2007 1,957.8 644.7 617.1
Financial year ended 7,160.5 2,543.9 2,430.5
Plus: June 2007 420.4 121.9 128.6
Amortisation*
March 2007 335.6 119.6 125.5
Financial year ended 1,471.5 483.7 544.9
Rehabilitation
June 2007 6.8 3.0 2.0
March 2007 6.4 3.0 2.0
Financial year ended 26.0 12.0 8.0
June 2007 2,368.5 777.5 752.0
TOTAL PRODUCTION
COSTS(3)
March 2007 2,299.8 767.3 744.6
Financial year ended 8,658.0 3,039.6 2,983.4
Gold sold
June 2007 685.3 260.5 229.6
- thousand ounces
March 2007 665.1 251.2 220.0
Financial year ended 2,649.0 1,016.5 922.9
TOTAL CASH COSTS
June 2007 400 353 382
- US$/oz
March 2007 408 356 389
Financial year ended 375 348 366
TOTAL CASH COSTS
June 2007 91,072 80,538 87,019
- R/kg
March 2007 94,644 82,506 90,180
Financial year ended 86,908 80,457 84,672
TOTAL PRODUCTION
June 2007 487 421 462
COSTS
March 2007 480 424 469
- US$/oz
Financial year ended 454 415 449
South African Operations
South
Beatrix Deep+
Operating costs(1)
June 2007 392.2 303.5
March 2007 387.9 303.3
Financial year ended 1,550.7 719.8
Gold-in-process and
inventory change*
June 2007 - -
March 2007 - 35.0
Financial year ended - 13.2
Less:
June 2007 1.7 0.1
Rehabilitation costs
March 2007 1.4 -
Financial year ended 5.9 0.1
Production taxes
June 2007 (1.6) 1.5
March 2007 (0.1) -
Financial year ended 1.2 1.5
General and admin
June 2007 16.0 10.6
March 2007 17.8 11.0
Financial year ended 70.0 21.6
Exploration costs
June 2007 - -
March 2007 - -
Financial year ended - -
Cash operating costs
June 2007 376.1 291.3
March 2007 368.8 327.3
Financial year ended 1,473.6 709.8
Plus: June 2007 (1.6) 1.5
Production taxes
March 2007 (0.1) -
Financial year ended 1.2 1.5
Royalties
June 2007 - -
March 2007 - -
Financial year ended - -
TOTAL CASH COSTS(2)
June 2007 374.5 292.8
March 2007 368.7 327.3
Financial year ended 1,474.8 711.3
Plus: June 2007 92.0 77.9
Amortisation*
March 2007 35.4 55.1
Financial year ended 300.6 142.3
Rehabilitation
June 2007 1.7 0.1
March 2007 1.4 -
Financial year ended 5.9 0.1
June 2007 468.2 370.8
TOTAL PRODUCTION
COSTS(3)
March 2007 405.5 382.4
Financial year ended 1,781.3 853.7
Gold sold
June 2007 125.7 69.5
- thousand ounces
March 2007 119.2 74.6
Financial year ended 543.4 166.1
TOTAL CASH COSTS
June 2007 420 594
- US$/oz
March 2007 429 608
Financial year ended 377 595
TOTAL CASH COSTS
June 2007 95,805 135,368
- R/kg
March 2007 99,434 141,017
Financial year ended 87,251 137,689
TOTAL PRODUCTION
June 2007 525 752
COSTS
March 2007 472 711
- US$/oz
Financial year ended 455 714
International Operations
Ghana
Total Tarkwa Damang
Operating costs(1)
June 2007 1,262.3 443.4 164.9
March 2007 1,153.2 465.8 160.2
Financial year ended 4,715.1 1,792.1 633.3
Gold-in-process and
inventory change*
June 2007 (90.4) (68.7) (2.2)
March 2007 (35.8) (16.6) 1.5
Financial year ended (187.1) (113.5) 10.1
Less:
June 2007 2.5 0.7 -
Rehabilitation costs
March 2007 2.4 0.8 -
Financial year ended 9.7 3.0 -
Production taxes
June 2007 - - -
March 2007 - - -
Financial year ended - - -
General and admin
June 2007 63.7 25.8 3.5
March 2007 57.0 25.8 4.2
Financial year ended 233.9 102.3 15.8
Exploration costs
June 2007 11.8 - 5.7
March 2007 12.9 - 5.9
Financial year ended 41.3 - 14.4
Cash operating costs
June 2007 1,093.9 348.2 153.5
March 2007 1,045.1 422.6 151.6
Financial year ended 4,243.1 1,573.3 613.2
Plus: June 2007 - - -
Production taxes
March 2007 - - -
Financial year ended - - -
Royalties
June 2007 51.7 24.3 5.7
March 2007 52.4 24.3 7.2
Financial year ended 211.6 96.1 25.9
TOTAL CASH COSTS(2)
June 2007 1,145.6 372.5 159.2
March 2007 1,097.5 446.9 158.8
Financial year ended 4,454.7 1,669.4 639.1
Plus: June 2007 399.5 82.2 9.5
Amortisation*
March 2007 302.7 67.5 8.6
Financial year ended 1,320.5 283.1 34.8
Rehabilitation
June 2007 2.5 0.7 -
March 2007 2.4 0.8 -
Financial year ended 9.7 3.0 -
June 2007 1,547.6 455.4 168.7
TOTAL PRODUCTION
COSTS(3)
March 2007 1,402.6 515.2 167.4
Financial year ended 5,784.9 1,955.5 673.9
Gold sold
June 2007 390.2 170.5 39.3
- thousand ounces
March 2007 397.0 174.3 48.5
Financial year ended 1,640.1 697.2 187.9
TOTAL CASH COSTS
June 2007 414 308 572
- US$/oz
March 2007 383 356 454
Financial year ended 377 333 473
TOTAL CASH COSTS
June 2007 94,381 70,243 130,278
- R/kg
March 2007 88,881 82,454 105,305
Financial year ended 87,332 76,988 109,379
TOTAL PRODUCTION
June 2007 559 377 605
COSTS
March 2007 490 410 479
- US$/oz
Financial year ended 490 390 498
International Operations
Venezuela Australia #
Choco 10 St Ives Agnew
Operating costs(1)
June 2007 76.0 390.4 187.6
March 2007 64.6 329.6 133.0
Financial year ended 288.6 1,484.2 516.9
Gold-in-process and
inventory change*
June 2007 (11.2) 30.9 (39.2)
March 2007 (19.9) 19.4 (20.2)
Financial year ended (35.4) 23.1 (71.4)
Less:
June 2007 - 1.8 -
Rehabilitation costs
March 2007 - 1.6 -
Financial year ended - 6.7 -
Production taxes
June 2007 - - -
March 2007 - - -
Financial year ended - - -
General and admin
June 2007 18.2 11.6 4.6
March 2007 11.9 10.1 5.0
Financial year ended 52.3 47.0 16.5
Exploration costs
June 2007 - 6.0 0.1
March 2007 - 6.3 0.7
Financial year ended - 24.8 2.1
Cash operating costs
June 2007 46.6 401.9 143.7
March 2007 32.8 331.0 107.1
Financial year ended 200.9 1,428.8 426.9
Plus: June 2007 - - -
Production taxes
March 2007 - - -
Financial year ended - - -
Royalties
June 2007 1.2 14.1 6.4
March 2007 1.3 14.4 5.2
Financial year ended 8.6 56.1 24.9
TOTAL CASH COSTS(2)
June 2007 47.8 416.0 150.1
March 2007 34.1 345.4 112.3
Financial year ended 209.5 1,484.9 451.8
Plus: June 2007 5.2 302.6
Amortisation*
March 2007 7.0 219.6
Financial year ended 38.8 963.8
Rehabilitation
June 2007 - 1.8
March 2007 - 1.6
Financial year ended - 6.7
June 2007 53.0 870.5
TOTAL PRODUCTION
COSTS(3)
March 2007 41.1 678.9
Financial year ended 248.3 2,907.2
Gold sold
June 2007 7.4 119.5 53.5
- thousand ounces
March 2007 8.2 119.4 46.6
Financial year ended 55.7 487.0 212.4
TOTAL CASH COSTS
June 2007 912 491 395
- US$/oz
March 2007 575 401 334
Financial year ended 523 424 295
TOTAL CASH COSTS
June 2007 207,826 111,888 90,150
- R/kg
March 2007 133,203 92,974 77,502
Financial year ended 121,028 98,039 68,403
TOTAL PRODUCTION
June 2007 1,010 710
COSTS
March 2007 693 567
- US$/oz
Financial year ended 619 577
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 = R7.09 and US$1 = R7.21 for the June 2007
and March 2007 quarters respectively.
# As a significant portion of the acquisition price was allocated to tenements
of St Ives and Agnew based on endowment ounces and also as these two
Australian operations are entitled to transfer and then off-set tax
losses from one company to another, it is not meaningful to split the
income statement below operating profit.
+ The acquisition of South Deep is effective from 1 December 2006.
Restated total cash cost on the assumption that Ore Reserve Development
(ORD) is fully expensed
Total Mine
Operations
Total cash
costs as above
(ORD capitalised)
June 2007 3,086.9
March 2007 3,055.3
Financial year ended 11,615.2
Add back ORD
June 2007 259.3
March 2007 248.2
Financial year ended 986.8
Restated total
cash costs##
June 2007 3,346.2
March 2007 3,303.5
Financial year ended 12,602.0
Restated total
cash costs
June 2007 439
- US$ per ounce
March 2007 431
Financial year ended 408
Restated total
cash costs
June 2007 100,024
- Rand per kilogram
March 2007 100,003
Financial year ended 94,467
South African
Operations
Total Driefontein Kloof
Total cash
costs as above
(ORD capitalised)
June 2007 1,941.3 652.6 621.4
March 2007 1,957.8 644.7 617.1
Financial year ended 7,160.5 2,543.9 2,430.5
Add back ORD
June 2007 259.3 87.7 93.2
March 2007 248.2 79.6 96.4
Financial year ended 986.8 347.0 373.9
Restated total
cash costs##
June 2007 2,200.6 740.3 714.6
March 2007 2,206.0 724.3 713.5
Financial year ended 8,147.3 2,890.9 2,804.4
Restated total
cash costs
June 2007 453 401 439
- US$ per ounce
March 2007 460 400 450
Financial year ended 427 395 422
Restated total
cash costs
June 2007 103,237 91,361 100,070
- Rand per kilogram
March 2007 106,642 92,693 104,267
Financial year ended 98,885 91,432 97,697
South African
Operations
South
Beatrix Deep+
Total cash
costs as above
(ORD capitalised)
June 2007 374.5 292.8
March 2007 368.7 327.3
Financial year ended 1,474.8 711.3
Add back ORD
June 2007 65.9 12.5
March 2007 66.0 6.2
Financial year ended 247.2 18.7
Restated total
cash costs##
June 2007 440.4 305.3
March 2007 434.7 333.5
Financial year ended 1,722.0 730.0
Restated total
cash costs
June 2007 494 619
- US$ per ounce
March 2007 506 620
Financial year ended 440 610
Restated total
cash costs
June 2007 112,663 141,147
- Rand per kilogram
March 2007 117,233 143,688
Financial year ended 101,875 141,309
International
Operations
Total
Total cash
costs as above
(ORD capitalised)
June 2007 1,145.6
March 2007 1,097.5
Financial year ended 4,454.7
Add back ORD
June 2007 -
March 2007 -
Financial year ended -
Restated total
cash costs##
June 2007 1,145.6
March 2007 1,097.5
Financial year ended 4,454.7
Restated total
cash costs
June 2007 414
- US$ per ounce
March 2007 383
Financial year ended 377
Restated total
cash costs
June 2007 94,381
- Rand per kilogram
March 2007 88,881
Financial year ended 87,332
## 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)
June 2007 12,817
March 2007 13,382
Financial year ended 52,166
Yield (grams per ton)
June 2007 2.6
March 2007 2.5
Financial year ended 2.6
Gold produced (kilograms)
June 2007 33,454
March 2007 32,788
Financial year ended 133,279
Gold sold (kilograms)
June 2007 33,454
March 2007 33,034
Financial year ended 133,401
Gold price received
(Rand per kilogram)
June 2007 152,825
March 2007 151,184
Financial year ended 147,623
Total cash costs
(Rand per kilogram)
June 2007 92,273
March 2007 92,490
Financial year ended 87,070
Total production costs
(Rand per kilogram)
June 2007 117,059
March 2007 112,078
Financial year ended 108,267
Operating costs
(Rand per ton)
June 2007 257
March 2007 237
Financial year ended 234
Financial Results
(Rand million)
Revenue
June 2007 5,112.6
March 2007 4,994.2
Financial year ended 19,693.1
Operating costs, net
June 2007 3,163.0
March 2007 3,154.1
Financial year ended 11,947.4
- Operating costs
June 2007 3,289.7
March 2007 3,165.2
Financial year ended 12,193.2
- Gold inventory
change
June 2007 (126.7)
March 2007 (11.1)
Financial year ended (245.8)
Operating profit
June 2007 1,949.6
March 2007 1,840.1
Financial year ended 7,745.7
Amortisation
of mining assets
June 2007 856.4
March 2007 648.4
Financial year ended 2,863.9
Net operating profit
June 2007 1,093.2
March 2007 1,191.7
Financial year ended 4,881.8
Other income/(expense)
June 2007 18.0
March 2007 27.9
Financial year ended 12.0
Profit before taxation
June 2007 1,111.2
March 2007 1,219.6
Financial year ended 4,893.8
Mining and
income taxation
June 2007 372.2
March 2007 408.4
Financial year ended 1,680.7
- Normal taxation
June 2007 218.6
March 2007 222.2
Financial year ended 892.4
- Deferred taxation
June 2007 153.6
March 2007 186.2
Financial year ended 788.3
Profit before
exceptional items
June 2007 739.0
March 2007 811.2
Financial year ended 3,213.1
Exceptional items
June 2007 36.2
March 2007 71.9
Financial year ended 124.3
Net profit
June 2007 775.2
March 2007 883.1
Financial year ended 3,337.4
Net profit excluding
gains and losses on
foreign exchange,
financial instruments
and exceptional items
June 2007 753.5
March 2007 835.8
Financial year ended 3,270.6
Capital expenditure
June 2007 1,534.6
March 2007 1,004.9
Financial year ended 4,387.0
Planned for next
six months to
December 2007 3,042.8
South African Operations
South African Rand Total Driefontein Kloof
Operating Results
Ore milled/
treated
(000 tons)
June 2007 3,874 1,642 931
March 2007 3,844 1,634 920
Financial year ended 15,175 6,652 3,829
Yield (grams per ton)
June 2007 5.5 4.9 7.7
March 2007 5.3 4.8 7.4
Financial year ended 5.4 4.8 7.5
Gold produced (kilograms)
June 2007 21,316 8,103 7,141
March 2007 20,440 7,814 6,843
Financial year ended 82,302 31,618 28,705
Gold sold (kilograms)
June 2007 21,316 8,103 7,141
March 2007 20,686 7,814 6,843
Financial year ended 82,392 31,618 28,705
Gold price received
(Rand per kilogram)
June 2007 152,059 152,030 152,192
March 2007 151,445 151,932 151,016
Financial year ended 147,514 147,596 147,243
Total cash costs
(Rand per kilogram)
June 2007 91,072 80,538 87,019
March 2007 94,644 82,506 90,180
Financial year ended 86,908 80,457 84,672
Total production costs
(Rand per kilogram)
June 2007 111,114 95,952 105,307
March 2007 111,177 98,196 108,812
Financial year ended 105,083 96,135 103,933
Operating costs
(Rand per ton)
June 2007 523 416 696
March 2007 523 415 699
Financial year ended 493 402 662
Financial Results
(Rand million)
Revenue
June 2007 3,241.3 1,231.9 1,086.8
March 2007 3,132.8 1,187.2 1,033.4
Financial year ended 12,154.0 4,666.7 4,226.6
Operating costs, net
June 2007 2,027.4 683.7 648.0
March 2007 2,047.0 677.3 643.5
Financial year ended 7,491.3 2,671.5 2,536.1
- Operating costs
June 2007 2,027.4 683.7 648.0
March 2007 2,012.0 677.3 643.5
Financial year ended 7,478.1 2,671.5 2,536.1
- Gold inventory
change
June 2007 - - -
March 2007 35.0 - -
Financial year ended 13.2 - -
Operating profit
June 2007 1,213.9 548.2 438.8
March 2007 1,085.8 509.9 389.9
Financial year ended 4,662.7 1,995.2 1,690.5
Amortisation
of mining assets
June 2007 420.4 121.9 128.6
March 2007 335.6 119.6 125.5
Financial year ended 1,471.5 483.7 544.9
Net operating profit
June 2007 793.5 426.3 310.2
March 2007 750.2 390.3 264.4
Financial year ended 3,191.2 1,511.5 1,145.6
Other income/(expense)
June 2007 (21.2) (0.6) (5.6)
March 2007 (4.6) (7.7) (5.1)
Financial year ended (95.4) (27.9) (27.5)
Profit before taxation
June 2007 772.3 425.7 304.6
March 2007 745.6 382.6 259.3
Financial year ended 3,095.8 1,483.6 1,118.1
Mining and
income taxation
June 2007 264.0 146.8 97.3
March 2007 235.7 129.9 61.6
Financial year ended 1,032.1 503.6 328.7
- Normal taxation
June 2007 116.6 54.8 61.5
March 2007 129.4 99.1 30.2
Financial year ended 434.2 341.8 91.9
- Deferred taxation
June 2007 147.4 92.0 35.8
March 2007 106.3 30.8 31.4
Financial year ended 597.9 161.8 236.8
Profit before
exceptional items
June 2007 508.3 278.9 207.3
March 2007 509.9 252.7 197.7
Financial year ended 2,063.7 980.0 789.4
Exceptional items
June 2007 33.3 19.0 0.3
March 2007 10.5 - 0.6
Financial year ended 54.9 24.3 0.9
Net profit
June 2007 541.6 297.9 207.6
March 2007 520.4 252.7 198.3
Financial year ended 2,118.6 1,004.3 790.3
Net profit excluding
gains and losses on
foreign exchange,
financial instruments
and exceptional items
June 2007 520.5 285.9 207.4
March 2007 513.9 252.9 198.0
Financial year ended 2,084.0 989.2 789.7
Capital expenditure
June 2007 878.4 298.0 208.9
March 2007 591.2 195.9 192.5
Financial year ended 2,467.0 815.0 775.8
Planned for next
six months to
December 2007 1,544.6 537.1 413.6
South African Operations
South African Rand Beatrix South Deep+
Operating Results
Ore milled/
treated
(000 tons)
June 2007 864 437
March 2007 807 483
Financial year ended 3,590 1,104
Yield (grams per ton)
June 2007 4.5 4.9
March 2007 4.6 4.3
Financial year ended 4.7 4.6
Gold produced (kilograms)
June 2007 3,909 2,163
March 2007 3,708 2,075
Financial year ended 16,903 5,076
Gold sold (kilograms)
June 2007 3,909 2,163
March 2007 3,708 2,321
Financial year ended 16,903 5,166
Gold price received
(Rand per kilogram)
June 2007 151,317 153,074
March 2007 151,807 150,495
Financial year ended 146,927 150,445
Total cash costs
(Rand per kilogram)
June 2007 95,805 135,368
March 2007 99,434 141,017
Financial year ended 87,251 137,689
Total production costs
(Rand per kilogram)
June 2007 119,775 171,429
March 2007 109,358 164,757
Financial year ended 105,384 165,254
Operating costs
(Rand per ton)
June 2007 454 695
March 2007 481 628
Financial year ended 432 652
Financial Results
(Rand million)
Revenue
June 2007 591.5 331.1
March 2007 562.9 349.3
Financial year ended 2,483.5 777.2
Operating costs, net
June 2007 392.2 303.5
March 2007 387.9 338.3
Financial year ended 1,550.7 733.0
- Operating costs
June 2007 392.2 303.5
March 2007 387.9 303.3
Financial year ended 1,550.7 719.8
- Gold inventory
change
June 2007 - -
March 2007 - 35.0
Financial year ended - 13.2
Operating profit
June 2007 199.3 27.6
March 2007 175.0 11.0
Financial year ended 932.8 44.2
Amortisation
of mining assets
June 2007 92.0 77.9
March 2007 35.4 55.1
Financial year ended 300.6 142.3
Net operating profit
June 2007 107.3 (50.3)
March 2007 139.6 (44.1)
Financial year ended 632.2 (98.1)
Other income/(expense)
June 2007 (14.0) (1.0)
March 2007 (9.0) 17.2
Financial year ended (44.9) 4.9
Profit before taxation
June 2007 93.3 (51.3)
March 2007 130.6 (26.9)
Financial year ended 587.3 (93.2)
Mining and
income taxation
June 2007 37.1 (17.2)
March 2007 50.3 (6.1)
Financial year ended 228.4 (28.6)
- Normal taxation
June 2007 0.3 -
March 2007 0.1 -
Financial year ended 0.5 -
- Deferred taxation
June 2007 36.8 (17.2)
March 2007 50.2 (6.1)
Financial year ended 227.9 (28.6)
Profit before
exceptional items
June 2007 56.2 (34.1)
March 2007 80.3 (20.8)
Financial year ended 358.9 (64.6)
Exceptional items
June 2007 5.6 8.4
March 2007 0.5 9.4
Financial year ended 11.9 17.8
Net profit
June 2007 61.8 (25.7)
March 2007 80.8 (11.4)
Financial year ended 370.8 (46.8)
Net profit excluding
gains and losses on
foreign exchange,
financial instruments
and exceptional items
June 2007 58.4 (31.2)
March 2007 80.5 (17.5)
Financial year ended 363.5 (58.4)
Capital expenditure
June 2007 207.4 164.1
March 2007 124.0 78.8
Financial year ended 592.8 283.4
Planned for next
six months to
December 2007 277.9 316.0
+ The acquisition of South Deep is effective from 1 December 2006.
Operating and financial results
South African Rand Total
Operating Results
Ore milled/treated (000 tons)
June 2007 8,943
March 2007 9,538
Financial year ended 36,991
Yield (grams per ton)
June 2007 1.4
March 2007 1.3
Financial year ended 1.4
Gold produced (kilograms)
June 2007 12,138
March 2007 12,348
Financial year ended 50,977
Gold sold (kilograms)
June 2007 12,138
March 2007 12,348
Financial year ended 51,009
Gold price received
(Rand per kilogram)
June 2007 154,169
March 2007 150,745
Financial year ended 147,799
Total cash costs
(Rand per kilogram)
June 2007 94,381
March 2007 88,881
Financial year ended 87,332
Total production costs
(Rand per kilogram)
June 2007 127,500
March 2007 113,589
Financial year ended 113,409
Operating costs
(Rand per ton)
June 2007 141
March 2007 121
Financial year ended 127
Financial Results
(Rand million)
Revenue
June 2007 1,871.3
March 2007 1,861.4
Financial year ended 7,539.1
Operating costs, net
June 2007 1,135.6
March 2007 1,107.1
Financial year ended 4,456.1
- Operating costs
June 2007 1,262.3
March 2007 1,153.2
Financial year ended 4,715.1
- Gold inventory change
June 2007 (126.7)
March 2007 (46.1)
Financial year ended (259.0)
Operating profit
June 2007 735.7
March 2007 754.3
Financial year ended 3,083.0
Amortisation
of mining assets
June 2007 436.0
March 2007 312.8
Financial year ended 1,392.4
Net operating profit
June 2007 299.7
March 2007 441.5
Financial year ended 1,690.6
Other income/(expense)
June 2007 39.2
March 2007 32.5
Financial year ended 107.4
Profit before taxation
June 2007 338.9
March 2007 474.0
Financial year ended 1,798.0
Mining and income taxation
June 2007 108.2
March 2007 172.7
Financial year ended 648.6
- Normal taxation
June 2007 102.0
March 2007 92.8
Financial year ended 458.2
- Deferred taxation
June 2007 6.2
March 2007 79.9
Financial year ended 190.4
Profit before
exceptional items
June 2007 230.7
March 2007 301.3
Financial year ended 1,149.4
Exceptional items
June 2007 2.9
March 2007 61.4
Financial year ended 69.4
Net profit
June 2007 233.6
March 2007 362.7
Financial year ended 1,218.8
Net profit excluding gains
and losses on
foreign exchange,
financial instruments and
exceptional items
Capital expenditure
June 2007 233.0
March 2007 321.9
Financial year ended 1,186.6
June 2007 656.2
March 2007 413.7
Financial year ended 1,920.0
Planned for next
six months to December 2007 1,498.2
International Operations
South African Rand Ghana Venezuela
Tarkwa Damang Choco 10
Operating Results
Ore milled/treated (000 tons)
June 2007 5,642 1,242 147
March 2007 5,895 1,384 191
Financial year ended 22,639 5,269 1,001
Yield (grams per ton)
June 2007 0.9 1.0 1.6
March 2007 0.9 1.1 1.3
Financial year ended 1.0 1.1 1.7
Gold produced (kilograms)
June 2007 5,303 1,222 230
March 2007 5,420 1,508 256
Financial year ended 21,684 5,843 1,699
Gold sold (kilograms)
June 2007 5,303 1,222 230
March 2007 5,420 1,508 256
Financial year ended 21,684 5,843 1,731
Gold price received
(Rand per kilogram)
June 2007 152,970 152,537 198,261
March 2007 150,738 150,398 152,344
Financial year ended 147,708 147,236 149,798
Total cash costs
(Rand per kilogram)
June 2007 70,243 130,278 207,826
March 2007 82,454 105,305 133,203
Financial year ended 76,988 109,379 121,028
Total production costs
(Rand per kilogram)
June 2007 85,876 138,052 230,434
March 2007 95,055 111,008 160,547
Financial year ended 90,182 115,335 143,443
Operating costs
(Rand per ton)
June 2007 79 133 517
March 2007 79 116 338
Financial year ended 79 120 288
Financial Results
(Rand million)
Revenue
June 2007 811.2 186.4 45.6
March 2007 817.0 226.8 39.0
Financial year ended 3,202.9 860.3 259.3
Operating costs, net
June 2007 374.0 162.7 64.7
March 2007 446.2 161.5 44.8
Financial year ended 1,669.5 643.2 253.1
- Operating costs
June 2007 443.4 164.9 76.0
March 2007 465.8 160.2 64.6
Financial year ended 1,792.1 633.3 288.6
- Gold inventory change
June 2007 (69.4) (2.2) (11.3)
March 2007 (19.6) 1.3 (19.8)
Financial year ended (122.6) 9.9 (35.5)
Operating profit
June 2007 437.2 23.7 (19.1)
March 2007 370.8 65.3 (5.8)
Financial year ended 1,533.4 217.1 6.2
Amortisation
of mining assets
June 2007 82.9 9.4 5.3
March 2007 70.5 8.8 7.0
Financial year ended 292.2 35.0 38.9
Net operating profit
June 2007 354.3 14.3 (24.4)
March 2007 300.3 56.5 (12.8)
Financial year ended 1,241.2 182.1 (32.7)
Other income/(expense)
June 2007 2.1 0.3 9.8
March 2007 (0.4) (0.7) (1.0)
Financial year ended (3.6) 0.3 16.7
Profit before taxation
June 2007 356.4 14.6 (14.6)
March 2007 299.9 55.8 (13.8)
Financial year ended 1,237.6 182.4 (16.0)
Mining and income taxation
June 2007 121.4 7.8 (5.1)
March 2007 92.6 19.0 (7.0)
Financial year ended 395.7 67.3 19.5
- Normal taxation
June 2007 25.9 6.0 (15.6)
March 2007 65.3 6.6 1.3
Financial year ended 267.6 32.5 11.9
- Deferred taxation
June 2007 95.5 1.8 10.5
March 2007 27.3 12.4 (8.3)
Financial year ended 128.1 34.8 7.6
Profit before
exceptional items
June 2007 235.0 6.8 (9.5)
March 2007 207.3 36.8 (6.8)
Financial year ended 841.9 115.1 (35.5)
Exceptional items
June 2007 - - (1.3)
March 2007 - - -
Financial year ended - - (1.3)
Net profit
June 2007 235.0 6.8 (10.8)
March 2007 207.3 36.8 (6.8)
Financial year ended 841.9 115.1 (36.8)
Net profit excluding gains
and losses on
foreign exchange,
financial instruments and
exceptional items
Capital expenditure
June 2007 234.8 7.1 (9.9)
March 2007 208.1 37.1 (6.8)
Financial year ended 851.4 118.9 (35.9)
June 2007 345.4 62.7 33.1
March 2007 151.5 64.6 16.8
Financial year ended 775.6 227.9 165.0
Planned for next
six months to December 2007 811.4 116.5 160.4
International Operations
South African Rand Australia #
St Ives Agnew
Operating Results
Ore milled/treated (000 tons)
June 2007 1,575 337
March 2007 1,744 324
Financial year ended 6,759 1,323
Yield (grams per ton)
June 2007 2.4 4.9
March 2007 2.1 4.5
Financial year ended 2.2 5.0
Gold produced (kilograms)
June 2007 3,718 1,665
March 2007 3,715 1,449
Financial year ended 15,146 6,605
Gold sold (kilograms)
June 2007 3,718 1,665
March 2007 3,715 1,449
Financial year ended 15,146 6,605
Gold price received
(Rand per kilogram)
June 2007 153,335 154,955
March 2007 150,713 150,932
Financial year ended 147,564 148,615
Total cash costs
(Rand per kilogram)
June 2007 111,888 90,150
March 2007 92,974 77,502
Financial year ended 98,039 68,403
Total production costs
(Rand per kilogram)
June 2007 161,713
March 2007 131,468
Financial year ended 133,658
Operating costs
(Rand per ton)
June 2007 248 557
March 2007 189 410
Financial year ended 220 391
Financial Results
(Rand million)
Revenue
June 2007 570.1 258.0
March 2007 559.9 218.7
Financial year ended 2,235.0 981.6
Operating costs, net
June 2007 433.3 100.9
March 2007 358.0 96.6
Financial year ended 1,511.8 378.5
- Operating costs
June 2007 390.4 187.6
March 2007 329.6 133.0
Financial year ended 1,484.2 516.9
- Gold inventory change
June 2007 42.9 (86.7)
March 2007 28.4 (36.4)
Financial year ended 27.6 (138.4)
Operating profit
June 2007 136.8 157.1
March 2007 201.9 122.1
Financial year ended 723.2 603.1
Amortisation
of mining assets
June 2007 338.4
March 2007 226.5
Financial year ended 1,026.3
Net operating profit
June 2007 (44.5)
March 2007 97.5
Financial year ended 300.0
Other income/(expense)
June 2007 27.0
March 2007 34.6
Financial year ended 94.0
Profit before taxation
June 2007 (17.5)
March 2007 132.1
Financial year ended 394.0
Mining and income taxation
June 2007 (15.9)
March 2007 68.1
Financial year ended 166.1
- Normal taxation
June 2007 85.7
March 2007 19.6
Financial year ended 146.2
- Deferred taxation
June 2007 (101.6)
March 2007 48.5
Financial year ended 19.9
Profit before
exceptional items
June 2007 (1.6)
March 2007 64.0
Financial year ended 227.9
Exceptional items
June 2007 4.2
March 2007 61.4
Financial year ended 70.7
Net profit
June 2007 2.6
March 2007 125.4
Financial year ended 298.6
Net profit excluding gains
and losses on
foreign exchange,
financial instruments and
exceptional items
Capital expenditure
June 2007 1.0
March 2007 83.5
Financial year ended 252.2
June 2007 155.0 60.0
March 2007 148.2 32.6
Financial year ended 545.8 205.7
Planned for next
six months to December 2007 302.1 107.8
Operating and financial results
Total Mine
United States Dollars Operations
Operating Results
Ore milled/treated (000 tons)
June 2007 12,817
March 2007 13,382
Financial year ended 52,166
Yield (ounces per ton)
June 2007 0.084
March 2007 0.079
Financial year ended 0.082
Gold produced (000 ounces)
June 2007 1,075.6
March 2007 1,054.1
Financial year ended 4,285.0
Gold sold (000 ounces)
June 2007 1,075.6
March 2007 1,062.1
Financial year ended 4,288.9
Gold price received
(dollars per ounce)
June 2007 670
March 2007 652
Financial year ended 638
Total cash costs
(dollars per ounce)
June 2007 405
March 2007 399
Financial year ended 376
Total production costs
(dollars per ounce)
June 2007 514
March 2007 483
Financial year ended 468
Operating costs
(dollars per ton)
June 2007 36
March 2007 33
Financial year ended 32
Financial Results
($ million)
Revenue
June 2007 718.5
March 2007 692.6
Financial year ended 2,735.2
Operating costs, net
June 2007 444.4
March 2007 437.3
Financial year ended 1,659.4
- Operating costs
June 2007 462.0
March 2007 438.9
Financial year ended 1,693.5
- Gold inventory change
June 2007 (17.6)
March 2007 (1.6)
Financial year ended (34.1)
Operating profit
June 2007 274.1
March 2007 255.3
Financial year ended 1,075.8
Amortisation of
mining assets
June 2007 120.3
March 2007 90.0
Financial year ended 397.8
Net operating profit
June 2007 153.9
March 2007 165.3
Financial year ended 678.0
Other income/(expenses)
June 2007 2.5
March 2007 3.9
Financial year ended 1.7
Profit before taxation
June 2007 156.3
March 2007 169.2
Financial year ended 679.7
Mining and income taxation
June 2007 52.4
March 2007 56.7
Financial year ended 233.4
- Normal taxation
June 2007 30.7
March 2007 30.9
Financial year ended 123.9
- Deferred taxation
June 2007 21.7
March 2007 25.8
Financial year ended 109.5
Profit before
exceptional items
June 2007 103.8
March 2007 112.5
Financial year ended 446.3
Exceptional items
June 2007 5.1
March 2007 10.0
Financial year ended 17.3
Net profit
June 2007 108.9
March 2007 122.5
Financial year ended 463.5
Net profit excluding gains
and losses on
foreign exchange, financial
instruments and
exceptional items
June 2007 108.8
March 2007 113.3
Financial year ended 454.2
Capital expenditure
June 2007 213.9
March 2007 139.1
Financial year ended 609.3
Planned for next six months
to December 2007 425.6
South African Operations
United States Dollars Total Driefontein Kloof
Operating Results
Ore milled/treated (000 tons)
June 2007 3,874 1,642 931
March 2007 3,844 1,634 920
Financial year ended 15,175 6,652 3,829
Yield (ounces per ton)
June 2007 0.177 0.159 0.247
March 2007 0.171 0.154 0.239
Financial year ended 0.174 0.153 0.241
Gold produced (000 ounces)
June 2007 685.3 260.5 229.6
March 2007 657.1 251.2 220.0
Financial year ended 2,646.1 1,016.5 922.9
Gold sold (000 ounces)
June 2007 685.3 260.5 229.6
March 2007 665.1 251.2 220.0
Financial year ended 2,649.0 1,016.5 922.9
Gold price received
(dollars per ounce)
June 2007 667 667 668
March 2007 653 655 651
Financial year ended 637 638 636
Total cash costs
(dollars per ounce)
June 2007 400 353 382
March 2007 408 356 389
Financial year ended 375 348 366
Total production costs
(dollars per ounce)
June 2007 487 421 462
March 2007 480 424 469
Financial year ended 454 415 449
Operating costs
(dollars per ton)
June 2007 74 59 98
March 2007 73 57 97
Financial year ended 68 56 92
Financial Results
($ million)
Revenue
June 2007 455.3 173.1 152.7
March 2007 434.2 164.6 143.3
Financial year ended 1,688.1 648.2 587.0
Operating costs, net
June 2007 284.7 96.1 91.1
March 2007 283.8 93.9 89.2
Financial year ended 1,040.4 371.0 352.2
- Operating costs
June 2007 284.7 96.1 91.1
March 2007 279.0 93.9 89.2
Financial year ended 1,038.5 371.0 352.2
- Gold inventory change
June 2007 - - -
March 2007 4.8 - -
Financial year ended 1.8 - -
Operating profit
June 2007 170.4 76.9 61.6
March 2007 150.4 70.6 54.0
Financial year ended 647.6 277.1 234.8
Amortisation of
mining assets
June 2007 59.0 17.2 18.1
March 2007 46.6 16.5 17.5
Financial year ended 204.4 67.2 75.7
Net operating profit
June 2007 111.5 59.7 43.5
March 2007 103.8 54.1 36.5
Financial year ended 443.2 209.9 159.1
Other income/(expenses)
June 2007 (3.0) (0.1) (0.8)
March 2007 (0.7) (1.1) (0.7)
Financial year ended (13.3) (3.9) (3.8)
Profit before taxation
June 2007 108.5 59.7 42.7
March 2007 103.2 53.0 35.8
Financial year ended 430.0 206.1 155.3
Mining and income taxation
June 2007 37.1 20.5 13.7
March 2007 32.5 17.9 8.5
Financial year ended 143.3 69.9 45.7
- Normal taxation
June 2007 16.4 7.8 8.6
March 2007 17.9 13.7 4.2
Financial year ended 60.3 47.5 12.8
- Deferred taxation
June 2007 20.7 12.8 5.1
March 2007 14.6 4.3 4.3
Financial year ended 83.0 22.5 32.9
Profit before
exceptional items
June 2007 71.4 39.1 29.0
March 2007 70.7 35.1 27.3
Financial year ended 286.6 136.1 109.6
Exceptional items
June 2007 4.6 2.7 -
March 2007 1.5 - 0.1
Financial year ended 7.6 3.4 0.1
Net profit
June 2007 76.0 41.8 29.1
March 2007 72.1 35.1 27.4
Financial year ended 294.3 139.5 109.8
Net profit excluding gains
and losses on
foreign exchange, financial
instruments and
exceptional items
June 2007 75.6 41.3 29.2
March 2007 68.7 33.9 27.4
Financial year ended 289.4 137.4 109.7
Capital expenditure
June 2007 122.0 41.4 29.0
March 2007 81.8 27.1 26.6
Financial year ended 342.6 113.2 107.8
Planned for next six months
to December 2007 216.0 75.1 57.8
South African Operations
United States Dollars Beatrix South Deep+
Operating Results
Ore milled/treated (000 tons)
June 2007 864 437
March 2007 807 483
Financial year ended 3,590 1,104
Yield (ounces per ton)
June 2007 0.145 0.159
March 2007 0.148 0.138
Financial year ended 0.151 0.148
Gold produced (000 ounces)
June 2007 125.7 69.5
March 2007 119.2 66.7
Financial year ended 543.4 163.2
Gold sold (000 ounces)
June 2007 125.7 69.5
March 2007 119.2 74.6
Financial year ended 543.4 166.1
Gold price received
(dollars per ounce)
June 2007 664 672
March 2007 655 649
Financial year ended 635 650
Total cash costs
(dollars per ounce)
June 2007 420 594
March 2007 429 608
Financial year ended 377 595
Total production costs
(dollars per ounce)
June 2007 525 752
March 2007 472 711
Financial year ended 455 714
Operating costs
(dollars per ton)
June 2007 64 98
March 2007 67 87
Financial year ended 60 91
Financial Results
($ million)
Revenue
June 2007 83.2 46.2
March 2007 78.1 48.3
Financial year ended 344.9 107.9
Operating costs, net
June 2007 55.2 42.4
March 2007 53.8 46.8
Financial year ended 215.4 101.8
- Operating costs
June 2007 55.2 42.4
March 2007 53.8 42.0
Financial year ended 215.4 100.0
- Gold inventory change
June 2007 - -
March 2007 - 4.8
Financial year ended - 1.8
Operating profit
June 2007 28.1 3.9
March 2007 24.3 1.5
Financial year ended 129.6 6.1
Amortisation of
mining assets
June 2007 12.9 10.9
March 2007 5.0 7.6
Financial year ended 41.8 19.8
Net operating profit
June 2007 15.2 (7.0)
March 2007 19.3 (6.1)
Financial year ended 87.8 (13.6)
Other income/(expenses)
June 2007 (1.9) (0.1)
March 2007 (1.3) 2.4
Financial year ended (6.2) 0.7
Profit before taxation
June 2007 13.3 (7.1)
March 2007 18.0 (3.7)
Financial year ended 81.6 (12.9)
Mining and income taxation
June 2007 5.3 (2.4)
March 2007 7.0 (0.9)
Financial year ended 31.7 (4.0)
- Normal taxation
June 2007 0.1 -
March 2007 - -
Financial year ended 0.1 -
- Deferred taxation
June 2007 5.3 (2.4)
March 2007 6.9 (0.9)
Financial year ended 31.7 (4.0)
Profit before
exceptional items
June 2007 7.9 (4.7)
March 2007 11.1 (2.8)
Financial year ended 49.8 (9.0)
Exceptional items
June 2007 0.8 1.2
March 2007 0.1 1.3
Financial year ended 1.7 2.5
Net profit
June 2007 8.7 (3.6)
March 2007 11.1 (1.5)
Financial year ended 51.5 (6.5)
Net profit excluding gains
and losses on
foreign exchange, financial
instruments and
exceptional items
June 2007 9.6 (4.4)
March 2007 9.8 (2.4)
Financial year ended 50.5 (8.1)
Capital expenditure
June 2007 28.8 22.8
March 2007 17.2 10.9
Financial year ended 82.3 39.4
Planned for next six months
to December 2007 38.9 44.2
Average exchange rates were US$1 = R7.09 and US$1 = R7.21 for the June 2007 and
March 2007 quarters respectively. The Australian dollar exchange rates were A$1
= R5.89 and A$1 = R5.66 for the June 2007 and March 2007 quarters respectively.
# As a si gnificant portion of the acquisition price was allocated to tenements
of St Ives and Agnew on endowment ounces and also as these two Australian
operations are entitled to transfer and then off-set tax losses from one
company to another, it is not meaningful to split the income statement below
operating profit. Figures may not add as they are rounded independently. + The
acquisition of South Deep is effective from 1 Dec 2006.
Operating and financial results
United States Dollars
Total
Operating Results
Ore milled/treated (000 tons)
June 2007 8,943
March 2007 9,538
Financial year ended 36,991
Yield (ounces per ton)
June 2007 0.044
March 2007 0.042
Financial year ended 0.044
Gold produced(000 ounces)
June 2007 390.2
March 2007 397.0
Financial year ended 1,638.9
Gold sold (000 ounces)
June 2007 390.2
March 2007 397.0
Financial year ended 1,640.0
Gold price received
(dollars per ounce)
June 2007 676
March 2007 650
Financial year ended 638
Total cash costs
(dollars per ounce)
June 2007 414
March 2007 383
Financial year ended 377
Total production costs
(dollars per ounce)
June 2007 559
March 2007 490
Financial year ended 490
Operating costs
(dollars per ton)
June 2007 20
March 2007 17
Financial year ended 18
Financial Results ($ million)
Revenue
June 2007 263.2
March 2007 258.3
Financial year ended 1,047.1
Operating costs, net
June 2007 159.7
March 2007 153.5
Financial year ended 619.0
- Operating costs
June 2007 177.3
March 2007 160.0
Financial year ended 655.0
- Gold inventory change
June 2007 (17.6)
March 2007 (6.5)
Financial year ended (36.0)
Operating profit
June 2007 103.7
March 2007 104.9
Financial year ended 428.2
Amortisation of mining assets
June 2007 61.3
March 2007 43.4
Financial year ended 193.4
Net operating profit
June 2007 42.4
March 2007 61.5
Financial year ended 234.8
Other income/(expenses)
June 2007 5.4
March 2007 4.5
Financial year ended 14.9
Profit before taxation
June 2007 47.8
March 2007 66.0
Financial year ended 249.7
Mining and income taxation
June 2007 15.3
March 2007 24.1
Financial year ended 90.1
- Normal taxation
June 2007 14.3
March 2007 13.0
Financial year ended 63.6
- Deferred taxation
June 2007 0.9
March 2007 11.2
Financial year ended 26.4
Profit before exceptional ite ms
June 2007 32.5
March 2007 41.9
Financial year ended 159.6
Exceptional items
June 2007 0.4
March 2007 8.5
Financial year ended 9.6
Net profit
June 2007 33.0
March 2007 50.4
Financial year ended 169.3
Net profit excluding gains and
losses on foreign exchange,
financial instruments and
exceptional items
June 2007 33.1
March 2007 44.6
Financial year ended 164.7
Capital expenditure
June 2007 91.9
March 2007 57.3
Financial year ended 266.7
Planned for next six months
to December 2007 209.5
International Operations
United States Dollars
Ghana Venezuela
Tarkwa Damang Choco 10
Operating Results
Ore milled/treated (000 tons)
June 2007 5,642 1,242 147
March 2007 5,895 1,384 191
Financial year ended 22,639 5,269 1,001
Yield (ounces per ton)
June 2007 0.030 0.032 0.050
March 2007 0.030 0.035 0.043
Financial year ended 0.031 0.036 0.055
Gold produced(000 ounces)
June 2007 170.5 39.3 7.4
March 2007 174.3 48.5 8.2
Financial year ended 697.2 187.9 54.6
Gold sold (000 ounces)
June 2007 170.5 39.3 7.4
March 2007 174.3 48.5 8.2
Financial year ended 697.1 187.9 55.7
Gold price received
(dollars per ounce)
June 2007 671 669 870
March 2007 650 649 657
Financial year ended 638 636 647
Total cash costs
(dollars per ounce)
June 2007 308 572 912
March 2007 356 454 575
Financial year ended 333 473 523
Total production costs
(dollars per ounce)
June 2007 377 605 1,010
March 2007 410 479 693
Financial year ended 390 498 619
Operating costs
(dollars per ton)
June 2007 11 19 73
March 2007 11 16 47
Financial year ended 11 17 40
Financial Results ($ million)
Revenue
June 2007 114.0 26.3 6.4
March 2007 113.3 31.4 5.5
Financial year ended 444.8 119.5 36.0
Operating costs, net
June 2007 52.8 22.8 9.1
March 2007 61.7 22.4 6.3
Financial year ended 231.9 89.3 35.2
- Operating costs
June 2007 62.4 23.2 10.7
March 2007 64.5 22.2 9.0
Financial year ended 248.9 88.0 40.1
- Gold inventory change
June 2007 (9.6) (0.3) (1.6)
March 2007 (2.8) 0.2 (2.7)
Financial year ended (17.0) 1.4 (4.9)
Operating profit
June 2007 61.3 3.5 (2.6)
March 2007 51.5 9.0 (0.8)
Financial year ended 213.0 30.2 0.9
Amortisation of mining assets
June 2007 11.7 1.4 0.8
March 2007 9.8 1.2 0.9
Financial year ended 40.6 4.9 5.4
Net operating profit
June 2007 49.6 2.1 (3.4)
March 2007 41.7 7.8 (1.7)
Financial year ended 172.4 25.3 (4.5)
Other income/(expenses)
June 2007 0.3 - 1.3
March 2007 (0.1) (0.1) (0.1)
Financial year ended (0.5) - 2.3
Profit before taxation
June 2007 49.9 2.1 (2.1)
March 2007 41.6 7.7 (1.9)
Financial year ended 171.9 25.3 (2.2)
Mining and income taxation
June 2007 17.1 1.0 (0.7)
March 2007 12.9 2.6 (0.9)
Financial year ended 55.0 9.3 2.7
- Normal taxation
June 2007 3.8 0.8 (2.1)
March 2007 9.1 0.9 0.2
Financial year ended 37.2 4.5 1.7
- Deferred taxation
June 2007 13.3 0.2 1.5
March 2007 3.8 1.8 (1.1)
Financial year ended 17.8 4.8 1.1
Profit before exceptional items
June 2007 32.8 1.1 (1.4)
March 2007 28.6 5.1 (1.0)
Financial year ended 116.9 16.0 (4.9)
Exceptional items
June 2007 - - (0.2)
March 2007 - - -
Financial year ended - - (0.2)
Net profit
June 2007 32.8 1.1 (1.6)
March 2007 28.6 5.1 (1.0)
Financial year ended 116.9 16.0 (5.1)
Net profit excluding gains and
losses on foreign exchange,
financial instruments and
exceptional items
June 2007 33.3 1.1 (1.3)
March 2007 28.6 5.1 (1.0)
Financial year ended 118.3 16.5 (5.0)
Capital expenditure
June 2007 48.2 8.9 4.7
March 2007 21.0 8.9 2.3
Financial year ended 107.7 31.7 22.9
Planned for next six months
to December 2007 113.5 16.3 22.4
International Operations
United States Dollars
Australia #
St Ives Agnew
Operating Results
Ore milled/treated (000 tons)
June 2007 1,575 337
March 2007 1,744 324
Financial year ended 6,759 1,323
Yield (ounces per ton)
June 2007 0.076 0.159
March 2007 0.068 0.144
Financial year ended 0.072 0.161
Gold produced(000 ounces)
June 2007 119.5 53.5
March 2007 119.4 46.6
Financial year ended 487.0 212.4
Gold sold (000 ounces)
June 2007 119.5 53.5
March 2007 119.4 46.6
Financial year ended 487.0 212.4
Gold price received
(dollars per ounce)
June 2007 673 680
March 2007 650 651
Financial year ended 637 642
Total cash costs
(dollars per ounce)
June 2007 491 395
March 2007 401 334
Financial year ended 424 295
Total production costs
(dollars per ounce)
June 2007 710
March 2007 567
Financial year ended 577
Operating costs
(dollars per ton)
June 2007 35 79
March 2007 26 57
Financial year ended 30 54
Financial Results ($ million)
Revenue
June 2007 80.3 36.1
March 2007 77.7 30.5
Financial year ended 310.4 136.3
Operating costs, net
June 2007 60.8 14.3
March 2007 49.7 13.3
Financial year ended 210.1 52.6
- Operating costs
June 2007 54.8 26.3
March 2007 45.8 18.4
Financial year ended 206.2 71.8
- Gold inventory change
June 2007 5.9 (12.0)
March 2007 3.9 (5.1)
Financial year ended 3.8 (19.2)
Operating profit
June 2007 19.7 21.9
March 2007 28.0 17.1
Financial year ended 100.4 83.8
Amortisation of mining assets
June 2007 47.4
March 2007 31.3
Financial year ended 142.5
Net operating profit
June 2007 (5.8)
March 2007 13.7
Financial year ended 41.7
Other income/(expenses)
June 2007 3.8
March 2007 4.9
Financial year ended 13.1
Profit before taxation
June 2007 (2.1)
March 2007 18.6
Financial year ended 54.7
Mining and income taxation
June 2007 (2.1)
March 2007 9.5
Financial year ended 23.1
- Normal taxation
June 2007 11.9
March 2007 2.8
Financial year ended 20.3
- Deferred taxation
June 2007 (14.0)
March 2007 6.7
Financial year ended 2.8
Profit before exceptional items
June 2007 0.1
March 2007 9.1
Financial year ended 31.7
Exceptional items
June 2007 0.6
March 2007 8.5
Financial year ended 9.8
Net profit
June 2007 0.7
March 2007 17.6
Financial year ended 41.5
Net profit excluding gains and
losses on foreign exchange,
financial instruments and
exceptional items
June 2007 -
March 2007 11.8
Financial year ended 35.0
Capital expenditure
June 2007 21.7 8.4
March 2007 20.6 4.5
Financial year ended 75.8 28.6
Planned for next six months
to December 2007 42.3 15.1
Australian Dollars
United States Dollars
Australia #
St Ives Agnew
Operating Results
Ore milled/treated (000 tons)
June 2007 1,575 337
March 2007 1,744 324
Financial year ended 6,759 1,323
Yield (ounces per ton)
June 2007 0.076 0.159
March 2007 0.068 0.144
Financial year ended 0.072 0.161
Gold produced(000 ounces)
June 2007 119.5 53.5
March 2007 119.4 46.6
Financial year ended 487.0 212.4
Gold sold (000 ounces)
June 2007 119.5 53.5
March 2007 119.4 46.6
Financial year ended 487.0 212.4
Gold price received
(dollars per ounce)
June 2007 810 818
March 2007 828 829
Financial year ended 812 818
Total cash costs
(dollars per ounce)
June 2007 591 476
March 2007 511 426
Financial year ended 540 377
Total production costs
(dollars per ounce)
June 2007 854
March 2007 722
Financial year ended 736
Operating costs
(dollars per ton)
June 2007 42 95
March 2007 33 73
Financial year ended 39 69
Financial Results ($ million)
Revenue
June 2007 96.2 43.6
March 2007 99.2 38.6
Financial year ended 395.6 173.7
Operating costs, net
June 2007 73.7 17.1
March 2007 63.3 17.1
Financial year ended 267.6 67.0
- Operating costs
June 2007 66.0 32.3
March 2007 58.2 23.6
Financial year ended 262.7 91.5
- Gold inventory change
June 2007 7.7 (15.2)
March 2007 5.1 (6.5)
Financial year ended 4.9 (24.5)
Operating profit
June 2007 22.5 26.5
March 2007 35.9 21.5
Financial year ended 128.0 106.7
Amortisation of mining assets
June 2007 57.9
March 2007 40.1
Financial year ended 181.6
Net operating profit
June 2007 (8.9)
March 2007 17.3
Financial year ended 53.1
Other income/(expenses)
June 2007 4.5
March 2007 6.3
Financial year ended 16.6
Profit before taxation
June 2007 (4.4)
March 2007 23.5
Financial year ended 69.7
Mining and income taxation
June 2007 (3.4)
March 2007 12.2
Financial year ended 29.4
- Normal taxation
June 2007 15.0
March 2007 3.5
Financial year ended 25.9
- Deferred taxation
June 2007 (18.4)
March 2007 8.7
Financial year ended 3.5
Profit before exceptional items
June 2007 (1.0)
March 2007 11.4
Financial year ended 40.3
Exceptional items
June 2007 0.6
March 2007 11.0
Financial year ended 12.5
Net profit
June 2007 (0.4)
March 2007 22.4
Financial year ended 52.8
Net profit excluding gains and
losses on foreign exchange,
financial instruments and
exceptional items
June 2007 (8.2)
March 2007 22.4
Financial year ended 44.6
Capital expenditure
June 2007 26.3 10.2
March 2007 26.4 5.7
Financial year ended 96.6 36.4
Planned for next six months
to December 2007 49.9 17.8
Underground and surface
South African Rand and Metric Units
Operating Results
Total Mine
Operations
Ore milled /
treated (000 ton)
- underground
June 2007 3,445
March 2007 3,317
Financial year ended 13,386
- surface
June 2007 9,372
March 2007 10,065
Financial year ended 38,780
- total
June 2007 12,817
March 2007 13,382
Financial year ended 52,166
Yield (grams per ton)
- underground
June 2007 6.6
March 2007 6.6
Financial year ended 6.7
- surface
June 2007 1.1
March 2007 1.1
Financial year ended 1.1
- combined
June 2007 2.6
March 2007 2.5
Financial year ended 2.6
Gold produced (kilograms)
- underground
June 2007 22,873
March 2007 21,926
Financial year ended 89,701
- surface
June 2007 10,581
March 2007 10,862
Financial year ended 43,578
- total
June 2007 33,454
March 2007 32,788
133,279
Financial year ended
Operating costs
(Rand per ton)
- underground
June 2007 631
March 2007 648
Financial year ended 604
- surface
June 2007 119
March 2007 101
Financial year ended 106
- total
June 2007 257
March 2007 237
Financial year ended 234
South African Operations
Total Driefontein Kloof
Ore milled /
treated (000 ton)
- underground
June 2007 3,062 981 851
March 2007 2,897 930 851
Financial year ended 11,625 3,812 3,447
- surface
June 2007 812 661 80
March 2007 947 704 69
Financial year ended 3,550 2,840 382
- total
June 2007 3,874 1,642 931
March 2007 3,844 1,634 920
Financial year ended 15,175 6,652 3,829
Yield (grams per ton)
- underground
June 2007 6.7 7.6 8.3
March 2007 6.7 7.6 8.0
Financial year ended 6.8 7.6 8.2
- surface
June 2007 0.9 1.0 0.7
March 2007 1.0 1.0 1.0
Financial year ended 1.0 1.0 1.2
- combined
June 2007 5.5 4.9 7.7
March 2007 5.3 4.8 7.4
Financial year ended 5.4 4.8 7.5
Gold produced (kilograms)
- underground
June 2007 20,564 7,467 7,086
March 2007 19,484 7,104 6,773
Financial year ended 78,761 28,815 28,260
- surface
June 2007 752 636 55
March 2007 956 710 70
Financial year ended 3,541 2,803 445
- total
June 2007 21,316 8,103 7,141
March 2007 20,440 7,814 6,843
82,302 31,618 28,705
Financial year ended
Operating costs
(Rand per ton)
- underground
June 2007 643 652 754
March 2007 673 680 748
Financial year ended 623 653 727
- surface
June 2007 72 67 79
March 2007 65 64 101
Financial year ended 67 65 82
- total
June 2007 523 416 696
March 2007 523 415 699
Financial year ended 493 402 662
South African Operations
South
Beatrix Deep+
Ore milled /
treated (000 ton)
- underground
June 2007 864 366
March 2007 807 309
Financial year ended 3,590 776
- surface
June 2007 - 71
March 2007 - 174
Financial year ended - 328
- total
June 2007 864 437
March 2007 807 483
Financial year ended 3,590 1,104
Yield (grams per ton)
- underground
June 2007 4.5 5.7
March 2007 4.6 6.1
Financial year ended 4.7 6.2
- surface
June 2007 - 0.9
March 2007 - 1.0
Financial year ended - 0.9
- combined
June 2007 4.5 4.9
March 2007 4.6 4.3
Financial year ended 4.7 4.6
Gold produced (kilograms)
- underground
June 2007 3,909 2,102
March 2007 3,708 1,899
Financial year ended 16,903 4,783
- surface
June 2007 - 61
March 2007 - 176
Financial year ended - 293
- total
June 2007 3,909 2,163
March 2007 3,708 2,075
16,903 5,076
Financial year ended
Operating costs
(Rand per ton)
- underground
June 2007 454 799
March 2007 481 951
Financial year ended 432 896
- surface
June 2007 - 156
March 2007 - 54
Financial year ended - 75
- total
June 2007 454 695
March 2007 481 628
Financial year ended 432 652
International Operations
Ghana
Total Tarkwa Damang
Ore milled /
treated (000 ton)
- underground
June 2007 383 - -
March 2007 420 - -
Financial year ended 1,761 - -
- surface
June 2007 8,560 5,642 1,242
March 2007 9,118 5,895 1,384
Financial year ended 35,230 22,639 5,269
- total
June 2007 8,943 5,642 1,242
March 2007 9,538 5,895 1,384
Financial year ended 36,991 22,639 5,269
Yield (grams per ton)
- underground
June 2007 6.0 - -
March 2007 5.8 - -
Financial year ended 6.2 - -
- surface
June 2007 1.1 0.9 1.0
March 2007 1.1 0.9 1.1
Financial year ended 1.1 1.0 1.1
- combined
June 2007 1.4 0.9 1.0
March 2007 1.3 0.9 1.1
Financial year ended 1.4 1.0 1.1
Gold produced (kilograms)
- underground
June 2007 2,309 - -
March 2007 2,442 - -
Financial year ended 10,940 - -
- surface
June 2007 9,829 5,303 1,222
March 2007 9,906 5,420 1,508
Financial year ended 40,037 21,684 5,843
- total
June 2007 12,138 5,303 1,222
March 2007 12,348 5,420 1,508
50,977 21,684 5,843
Financial year ended
Operating costs
(Rand per ton)
- underground
June 2007 539 - -
March 2007 475 - -
Financial year ended 481 - -
- surface
June 2007 123 79 133
March 2007 105 79 116
Financial year ended 110 79 120
- total
June 2007 141 79 133
March 2007 121 79 116
Financial year ended 127 79 120
International Operations
Venezuela Australia
Choco 10 St Ives Agnew
Ore milled /
treated (000 ton)
- underground
June 2007 - 304 79
March 2007 - 319 101
Financial year ended - 1,367 394
- surface
June 2007 147 1,271 258
March 2007 191 1,425 223
Financial year ended 1,001 5,392 929
- total
June 2007 147 1,575 337
March 2007 191 1,744 324
Financial year ended 1,001 6,759 1,323
Yield (grams per ton)
- underground
June 2007 - 5.3 8.7
March 2007 - 4.8 9.1
Financial year ended - 4.9 10.8
- surface
June 2007 1.6 1.6 3.8
March 2007 1.3 1.5 2.4
Financial year ended 1.7 1.6 2.5
- combined
June 2007 1.6 2.4 4.9
March 2007 1.3 2.1 4.5
Financial year ended 1.7 2.2 5.0
Gold produced (kilograms)
- underground
June 2007 - 1,623 686
March 2007 - 1,518 924
Financial year ended - 6,702 4,238
- surface
June 2007 230 2,095 979
March 2007 256 2,197 525
Financial year ended 1,699 8,444 2,367
- total
June 2007 230 3,718 1,665
March 2007 256 3,715 1,449
1,699 15,146 6,605
Financial year ended
Operating costs
(Rand per ton)
- underground
June 2007 - 548 501
March 2007 - 416 662
Financial year ended - 461 552
- surface
June 2007 517 176 574
March 2007 338 138 296
Financial year ended 288 158 322
- total
June 2007 517 248 557
March 2007 338 189 410
Financial year ended 288 220 391
+ 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
June 2007 706
March 2007 723
Financial year ended 678
- surface
June 2007 119
March 2007 101
Financial year ended 106
- total
June 2007 277
March 2007 255
Financial year ended 253
South African Operations
South
Total Driefontein Kloof Beatrix Deep+
- underground
June 2007 727 741 863 530 833
March 2007 759 766 861 562 971
Financial year ended 708 744 835 501 920
- surface
June 2007 72 67 79 - 156
March 2007 65 64 101 - 54
Financial year ended 67 65 82 - 75
- total
June 2007 590 470 797 530 721
March 2007 588 463 804 562 641
Financial year ended 558 454 760 501 668
International
Operations
Total
- underground
June 2007 539
March 2007 475
Financial year ended 481
- surface
June 2007 123
March 2007 105
Financial year ended 110
- total
June 2007 141
March 2007 121
Financial year ended 127
+ 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 June 2007 quarter
Carbon Main VCR
Reef Leader
Advanced (m) 4,164 1,054 1,666
Advanced on reef (m) 736 332 311
Sampled (m) 579 402 123
Channel width (cm) 59 43 73
Average value - (g/t) 24.3 10.8 115.9
- (cm.g/t) 1,426 469 8,478
Driefontein March 2007 quarter
Carbon Main VCR
Reef Leader
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) 987 390 814
Driefontein Year ended F2007
Carbon Main VCR
Reef Leader
Advanced (m) 17,539 4,063 6,404
Advanced on reef (m) 3,306 1,062 885
Sampled (m) 2,868 969 648
Channel width (cm) 66 54 85
Average value - (g/t) 20.3 8.8 28.6
- (cm.g/t) 1,337 478 2,418
Kloof June 2007 quarter
Libanon Kloof Main VCR
Reef
Advanced (m) - 327 1,679 6,966
Advanced on
reef (m) - 11 410 933
Sampled (m) - 21 402 801
Channel width (cm) - 37 77 89
Average value - (g/t) - 0.1 7.8 20.5
- (cm.g/t) - 3 600 1,824
Kloof March 2007 quarter
Libanon Kloof Main VCR
Reef
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 Year ended F2007
Libanon Kloof Main VCR
Reef
Advanced (m) 28 1,253 6,566 27,201
Advanced on
reef (m) 16 138 1,606 4,322
Sampled (m) 15 141 1,509 3,654
Channel
width (cm) 99 81 95 82
Average
value - (g/t) 10.3 6.3 8.3 20.9
- (cm.g/t) 1,026 507 788 1,704
Beatrix June 2007 quarter
Reef Beatrix Kalkoenkrans
Advanced (m) 8,340 2,676
Advanced on reef (m) 1,458 284
Sampled (m) 1,260 270
Channel width (cm) 96 164
Average value - (g/t) 9.2 10.0
- (cm.g/t) 884 1,638
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) 578 800
Beatrix Year ended F2007
Reef Beatrix Kalkoenkrans
Advanced (m) 33,498 10,294
Advanced on reef (m) 5,767 635
Sampled (m) 4,623 540
Channel width (cm) 88 143
Average value - (g/t) 10.3 10.4
- (cm.g/t) 907 1,482
South Deep+ June 2007 quarter
Reef VCR Elsburg
Advanced (m) 658 879
Advanced on reef (m) 91 625
Sampled (m) 69 -
Channel width (cm) 94 -
Average value - (g/t) 3.0 6.3 3
- (cm.g/t) 282 2 -
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
- (cm.g/t) 42 -
7 months year to date F2007
Reef VCR Elsburg
Advanced (m) 900 2,029
Advanced on reef (m) 109 1,598
Sampled (m) 84 -
Channel width (cm) 98 -
Average value - (g/t) 2.4 6.3
- (cm.g/t) 239 -
1) High grades intersected in 4 shaft pillar.
2) VCR not fully exposed in faulted area.
3) Trackless development in the Elsburg reefs is evaluated by means of
the block model.
+ 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
South African Media Relations
NERINA BODASING
Telephone: (+27)(11) 644 2630
Facsimile: (+27)(11) 484 0639
e-mail: nerina.bodasing@goldfields.co.za
North American
Investor 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.
Gold Fields Limited
Incorporated in the Republic of South Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN: ZAE 000018123
Directors
A J Wright (Chairman) A Grigorian ? J M McMahon * P J Ryan * British
I D Cockerill *
(Chief Executive Officer) J G Hopwood D M J Ncube T M G Sexwale # Ghanaian
N J Holland *
(Chief Financial Officer) G Marcus R L Pennant-Rea * C I von Christierson
K Ansah#
Russian
Date: 01/08/2007 08:38:24 Produced by the JSE SENS Department.
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