| Thu 31 Jan 2008, 8:00 | | GFI - Gold Fields Limited - Financial Report |
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GFI
GOGOF
GFI - Gold Fields Limited - Financial Report
Gold Fields Limited
Incorporated in the Republic of South Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN: ZAE000018123
Financial Report
Operating profit of R2 billion and net earnings of R1.9 billion in the quarter
ended 31 December 2007
JOHANNESBURG. 31 January 2008, Gold Fields Limited (NYSE & JSE: GFI) today
announced net earnings for the December 2007 quarter of R1,938 million,
compared with restated net earnings of R429 million and R767 million for the
September 2007 and the December 2006 quarters respectively. In US dollar terms
net earnings for the December 2007 quarter were US$281 million, compared with
restated earnings of US$60 million and US$104 million for the September 2007
and the December 2006 quarters respectively.
December 2007 quarter salient features:
- Attributable gold production of 960,000 ounces 3 per cent lower than the
previous quarter;
- Net earnings and normalised earnings increase by 350 per cent and 48 per
cent respectively;
- Sale of Essakane and Venezuelan assets successfully concluded releasing
R4,174 million (US$615 million) in value;
- Draft three of the South African royalty bill published during the quarter,
if passed in its present form, would result in a significantly higher royalty
than originally proposed at current gold prices.
Statement by Ian Cockerill, Chief Executive Officer of Gold Fields:
"During the December quarter we saw a welcome recovery at our international
operations.
Regrettably the South African operations, in particular Driefontein, were
adversely affected by a number of safety related work stoppages. We are fully
committed to stop this through a resolute focus on safe production, which is
our highest priority.
Despite an overall decline of three per cent in production Gold Fields saw a
welcome four per cent improvement in its operating margin, on the back of the
improved gold price. This is a trend which we hope to maintain and improve upon
through continued focus on productivity and costs. Cost control will be
paramount in the face of ongoing input cost pressures on all fronts precipitated
by inflation trends and the resource boom. Current power shortages in South
Africa will impact production in the March quarter and into the foreseeable
future.
This quarter saw some good results on the cost side of our business with total
cash costs increasing by only three per cent, despite the lower production and
ongoing cost pressures.
Production at the Cerro Corona project is forecast to commence by the middle of
2008 as previously announced. This project will add more than 400,000 high
margin ounces per year to our production profile."
Stock data
Number of shares in issue
- at end December 2007 652,486,582
- average for the quarter 652,412,191
Free Float 100%
ADR Ratio 1:1
Bloomberg / Reuters GFISJ / GFLJ.J
JSE Limited - (GFI)
Range - Quarter ZAR93.58 - ZAR127.79
Average Volume - Quarter 2,534,152 shares / day
NYSE - (GFI)
Range - Quarter US$13.61 - US$19.13
Average Volume - Quarter 5,632,277 shares / day
South African Rand
Salient features #
Six months to
Dec Dec
2006 2007
Gold produced* 61,689 60,522
Total cash costs 81,400 99,988
Tons milled 25,304 24,980
Revenue 143,322 162,857
Operating costs 221 266
Operating profit 3,925 3,754
Operating margin 42 36
1,465 2,367
Net earnings
289 363
1,454 866
Headline earnings
287 133
Net earnings 1,297 1,011
excluding gains and
losses on foreign
exchange, financial
instruments, 256 155
exceptional items
and discontinued
operations
Quarter
Dec Sept Dec
2006 2007 2007
Gold produced* 30,906 30,661 29,861 kg
Total cash costs 83,334 98,465 101,532 R/kg
Tons milled 12,752 12,350 12,630 000
Revenue 144,519 155,333 170,488 R/kg
Operating costs 227 267 265 R/ton
Operating profit 1,946 1,716 2,037 Rm
Operating margin 41 34 38 %
767 429 1,938 Rm
Net earnings
148 66 297 SA c.p.s.
762 411 456 Rm
Headline earnings
147 63 70 SA c.p.s.
Net earnings 579 408 603 Rm
excluding gains and
losses on foreign
exchange, financial
instruments, 112 62 93 SA c.p.s.
exceptional items
and discontinued
operations
United States Dollars
Salient features #
Quarter
Dec Sept Dec
2007 2007 2006
Gold produced* oz (000) 960 986 993
Total cash costs $/oz 467 431 351
Tons milled 000 12,630 12,350 12,752
Revenue $/oz 784 680 609
Operating costs $/ton 39 38 31
Operating profit $m 300 242 263
Operating margin % 38 34 41
$m 281 60 104
Net earnings
US c.p.s. 43 9 20
$m 67 58 104
Headline earnings
US c.p.s. 10 9 20
Net earnings $m 88 57 78
excluding gains and
losses on foreign
exchange, financial
instruments, US c.p.s. 13 9 16
exceptional items
and discontinued
operations
Six months to
Dec Dec
2007 2006
Gold produced* 1,946 1,983
Total cash costs 449 350
Tons milled 24,980 25,304
Revenue 731 616
Operating costs 38 30
Operating profit 542 542
Operating margin 36 42
342 202
Net earnings
52 40
125 201
Headline earnings
19 40
Net earnings 146 179
excluding gains and
losses on foreign
exchange, financial
instruments, 22 35
exceptional items
and discontinued
operations
* Attributable - All companies wholly owned except for Ghana (71.1%)
# Prior period figure have been restated to exclude the discontinued assets
sold during the December 2007 quarter i.e. the Venezuelan assets (Choco 10)
and Essakane.
Health and safety
We deeply regret to report 13 separate accidents which resulted in 17
fatalities for the Group during the December quarter. As a result the fatal
injury frequency rate for the December quarter increased to 0.32 per million
hours worked, compared with the previous quarter`s 0.17. The lost time injury
frequency rate improved from 9.8 to 6.9, the serious injury frequency rate
improved from 5.1 to 4.0, and the days lost injury frequency rate improved from
276 to 248. A full explanation of the safety terms used in this report is
available on our web site.
The majority of these accidents mentioned above occurred at the Kloof mine
where five accidents resulted in eight fatalities. Driefontein had three
accidents, while South Deep and Beatrix had one each. There were four
fall-of-rock related accidents, four tramming or cleaning related accidents,
one spillage conveyance related accident and a blasting related accident. Both
Kloof and Driefontein were issued with instructions ("Section 54`s") to stop
operations by the Principal Inspector of the Gauteng area of the Department of
Minerals and Energy, until full re-assessments of their base line risk
assessments and codes of practices were reviewed by all stakeholders and
independent third parties. In addition, physical audits were made of workings
and practices. Despite the above Kloof 7 shaft and Beatrix West section
achieved 1,000,000 fatality free shifts in the quarter.
The Presidential Audit initiative, which came about as a result of recent poor
safety performance across the mining sector, commenced at the end of the
December quarter. Gold Fields will probably be audited in the March quarter and
fully supports this initiative as it does any process that has the potential to
improve health and safety at our operations.
At the international operations, Tarkwa had two fatal accidents which resulted
in three fatalities, one as a result of an electrocution, and two as a result
of a conveyor belt incident. Cerro Corona had one electrocution fatal accident
during the reporting period.
As can be seen by the above results the safety campaigns at the operations have
yielded the desired results and safety trends for injuries and days lost
reflects an improvement. Kloof 7 shaft and Beatrix West section achieved
1,000,000 fatality free shifts, Beatrix North section achieved 715,836 fatality
free shifts and Kloof main shaft achieved 500,000 fatality free shifts.
Gold Fields remains committed to a philosophy of zero harm, and benchmarks
itself against the Ontario benchmark, as well as pursuing the Mine Health and
Safety Council milestones in South Africa. Behavioural based interventions will
continue at all operations in the Group. All operations have been audited and
achieved OHSAS 18001 certification, except South Deep and Cerro Corona. The
operations not currently certified are implementing the requirements of OHSAS
18001, with certification planned by the end of the financial year. A programme
similar to the successful "Let`s be Safe" initiative at Driefontein has been
adapted and is being implemented at Kloof to improve its safety performance.
Financial review
Quarter ended 31 December 2007 compared
with quarter ended 30 September 2007
Discontinued operations
The Venezuelan assets (including Choco 10) which were sold during the quarter
are classed as a discontinued operation for accounting purposes, and as such
all prior periods have been restated to exclude results from this operation.
Revenue
Attributable gold production (excluding Choco 10 as explained above) for the
December 2007 quarter amounted to 960,000 ounces, compared with 986,000 ounces
in the September quarter, a decrease of 3 per cent. Production at the South
African operations decreased from 689,000 ounces to 657,000 ounces.
Attributable production at the international operations increased from 297,000
ounces to 303,000 ounces.
At the South African operations gold production was adversely affected by the
one day national strike by the National Union of Mineworkers (NUM) on 4
December, mine closures at Driefontein and Kloof related to fatal accidents, as
well as labour unrest at Beatrix. At Driefontein, production decreased 8 per
cent due to a combination of mine closures and lower underground yields. Gold
production at Kloof decreased 2 per cent as a result of lower underground tons
due to the impact of the lost shifts. This was partly offset by an increase in
underground yield. At Beatrix, gold production was similar quarter on quarter,
with the lower volumes mined and processed offset by a slight increase in
yield. At South Deep, gold production decreased 9 per cent. This was mainly as
a result of a decrease in underground volumes and yield because of a reduction
in mining activity on the conventional Ventersdorp Contact Reef ("VCR") horizon
where a major fault on the western side of the ore body was intersected in the
September 2007 quarter. This horizon is largely depleted above 95 level. In
addition, trackless volumes were lower as a result of a surface fan failure
which affected underground temperatures and curtailed entry and mining
activities for 35 days. This affected the newly established longhole open
stoping area.
At the international operations, gold production at Tarkwa increased 3 per cent
due to higher processed volumes. Excessive rains, which occurred during the
September quarter and reduced the availability of competent material to run the
mill effectively, returned to more normal levels during the second half of the
quarter. At Damang, gold production decreased 7 per cent due to lower volumes
and lower yields. The lower volumes processed was due to plant downtime caused
by a power outage due to a fire at the plant, and the lower yield was due to
lower than forecast grades processed from stockpiled ore. Gold production at St
Ives increased by 7 per cent due to an increase in yield resulting from
improved recoveries at the heap leach operation. At Agnew, gold production
decreased by 4 per cent as predicted, with a decrease in tons processed because
of a planned maintenance shutdown.
The average quarterly US dollar gold price increased from US$680 per ounce in
the September quarter to US$784 per ounce in the December quarter, a 15 per
cent increase. The average rand/US dollar exchange rate averaged R6.76,
compared with the R7.10 achieved in the September quarter. As a result of the
above factors, the rand gold price improved from R155,333 per kilogram to
R170,488 per kilogram, a 10 per cent increase. The Australian dollar gold price
increased quarter on quarter from A$812 per ounce to A$886 per ounce.
The increase in the rand gold price achieved offset the decrease in production.
Revenue in rand terms amounted to R5,430 million (US$801 million), compared
with the previous quarter`s R5,018 million (US$707 million), an increase of 8
per cent.
Operating costs
Operating costs increased by less than 2 per cent during the December quarter
to R3,341 million (US$494 million), compared with R3,292 million (US$464
million) in the September quarter. Total cash costs increased by 3 per cent
from R98,465 per kilogram (US$431 per ounce) to R101,532 per kilogram (US$467
per ounce).
At the South African operations, operating costs increased from R2,114 million
(US$298 million) to R2,174 million (US$321 million), an increase of 3 per cent.
This increase was mainly due to increased contractor costs, increased sweepings
and secondary support costs, increased repairs and maintenance, additional
voluntary shifts, training, safety interventions, together with transport of
surface material to South Deep from Kloof and general inflationary pressures.
Total cash costs at the South African operations increased from R94,248 per
kilogram (US$413 per ounce) to R101,170 per kilogram (US$465 per ounce).
Operating costs at the international operations, including gold-in- process
movements, amounted to R1,219 million (US$180 million), compared with R1,188
million (US$167 million) in the September quarter, an increase of 3 per cent.
In US dollar terms costs at Tarkwa increased by US$3 million or 6 per cent
mainly due to the increase in production. At Damang, costs increased by US$5
million or 23 per cent as a consequence of increased volumes mined from the
Damang pit cutback and an increase in on-mine power generation. At St Ives,
operating costs in Australian dollar terms, including gold-in-process
movements, decreased by A$3 million or 5 per cent mainly as a result of a
decrease in maintenance costs. At Agnew, operating costs increased by A$3
million mainly due to the increase in processed ore from Songvang.
Total cash costs at the international operations were similar at US$470 per
ounce quarter on quarter.
Operating margin
The net effect of the changes in revenue and costs, after taking in account
gold-in-process movements, was an operating profit of R2,037 million (US$300
million). This represented a 19 per cent increase when compared with the R1,716
million (US$242 million) achieved in the September quarter. The Group operating
margin increased from 34 per cent to 38 per cent. The margin at the South
African operations increased from 36 per cent to 37 per cent, and the margin at
the international operations increased from 30 per cent to 38 per cent.
Amortisation
Amortisation decreased marginally from R771 million (US$109 million) in the
September quarter to R763 million (US$113 million) in the December quarter.
This decrease was mainly due to the lower charge from Agnew`s Songvang due to
the cessation of mining as ore from the pit was depleted in the September
quarter, offset by the amortisation of discontinued operations at South Deep`s
VCR and adjustments at Beatrix to correct cumulative Ore Reserve Development
amortisation.
Other
Net interest paid was similar at R92 million (US$14 million) when compared with
the September quarter.
The loss on foreign exchange of R5 million (US$1 million), compares with a loss
of R12 million (US$2 million) in the September quarter. The December quarter`s
loss results from the conversion of offshore cash holdings into the functional
currency. The September quarter`s loss consists largely of an unrealized
exchange loss of R11 million (US$2 million) relating to a US dollar denominated
insurance receivable at South Deep.
The loss on financial instruments for the quarter at R188 million (US$27
million) compares with a gain of R9 million (US$1 million) for the September
quarter. The loss of R188 million (US$27 million) in the December quarter
comprises a R168 million (US$24 million) mark to market unrealised loss arising
from the agreement with Mvela Resources which provides that Mvela Resources may
acquire a minimum of 45,000,000 and a maximum of 55,000,000 Gold Fields shares
should it elect to exchange its equity interest in GFIMSA for Gold Fields`
shares. In terms of IAS 39 the floor and cap arrangement with Mvela Resources
is a derivative instrument and is required to be valued and marked to market
each quarter through earnings. Also included is a R30 million (US$4 million)
unrealised mark to market loss on share warrants included in the Group`s
investment portfolio, partly offset by a R10 million (US$1 million) gain on the
diesel hedge in Ghana. The gain of R9 million (US$1 million) in the September
quarter comprises a R32 million (US$4 million) mark to market unrealised gain
arising from the agreement with Mvela Resources as explained above. This was
partially offset by a R23 million (US$3 million) mark to market loss on the
share warrants mentioned above.
Exploration
Exploration expenditure, decreased from R85 million (US$12 million) in the
September quarter to R79 million (US$12 million) in the December quarter.
Please refer to the Exploration and Corporate Development section for more
detail.
Exceptional items
Exceptional gains in the December quarter amount to R1,417 million (US$205
million) and mainly comprise, profit on the sale of Essakane of R1,389 million
(US$201 million), and profit on the sale of investments of R26 million (US$4
million). The gross proceeds from the sale of Essakane amounted to R1,375
million (US$202 million) and comprised cash of R1,042 million (US$153 million)
and shares in Orezone Resources Incorporated of R333 million (US$49 million).
Exceptional gains in the September quarter amounted to R29 million
(US$4 million) and include profit on the sale of houses at Beatrix and South
Deep, and profit on the sale of redundant mining equipment at Driefontein.
Taxation
Taxation for the quarter amounted to R418 million (US$61 million) compared with
R289 million (US$41 million) in the September 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.
Discontinued operations
During the December quarter the assets in Venezuela were sold.
The gross proceeds from the sale of the Venezuelan assets amounted to R2,799
million (US$413 million) and comprised cash of R1,219 million (US$180 million)
and shares in Rusoro Mining Limited of R1,580 million (US$233 million). This
sale necessitated the restatement of prior periods salient features and
financial results as required by IFRS 5. Salient features and financial results
of continued and discontinued operations are detailed in the operating and
financial results from page 16.
The net gain from the sale of the Venezuelan assets in the December quarter
amounted to R119 million (US$17 million). This comprises a profit on the
disposal of the Venezuelan assets of R74 million (US$11 million) and an income
on the operational results at Choco 10 for the two months ended November 2007,
the effective date of sale, of R45 million (US$6 million). The loss of R8
million (US$1 million) in the September quarter was the consolidated loss on
the Venezuela operations.
Earnings
Net profit attributable to ordinary shareholders amounted to R1,938 million
(US$281 million) or 297 SA cents per share (US$0.43 per share), compared with
R429 million (US$60 million) or 66 SA cents per share (US$0.09 per share) in
the previous quarter which was restated as described above.
Headline earnings i.e. earnings less the after tax effect of asset sales,
impairments, the sale of investments and discontinued operations, was R456
million (US$67 million) or 70 SA cents per share (US$10 per share), compared
with earnings of R411 million (US$58 million) or 63 SA cents per share (US$0.09
per share) last quarter.
Earnings excluding exceptional items as well as net gains and losses on foreign
exchange, financial instruments and discontinued operations, amounted to R603
million (US$88 million) or 93 SA cents per share (US$0.13 per share), compared
with earnings of R408 million (US$57 million) or 62 SA cents per share (US$0.09
per share) reported last quarter.
Balance sheet
The large increase in investments quarter on quarter is mainly due to the 41.7
million shares valued at R333 million (US$49 million) received from Orezone
Resources Incorporated as part payment for the Essakane disposal and the 140.0
million shares valued at R1,580 million (US$233 million) received from Rusoro
Mining Limited as part payment for the Venezuelan disposal.
Cash flow
Cash inflow from operating activities for the quarter was R1,148 million
(US$175 million), compared with R985 million (US$131 million) in the September
quarter. This quarter on quarter increase of R163 million (US$44 million) is
mostly due to the increase in operating profit and a decrease in taxation paid
from R361 million (US$59 million) to R130 million (US$14 million), partially
offset by a working capital outflow of R571 million (US$83 million) in the
December quarter compared with an outflow of R224 million (US$32 million) in
the September quarter.
Capital expenditure increased from R1,928 million (US$272 million) in the
September quarter to R2,476 million (US$364 million) in the December quarter.
At the South African operations capital expenditure increased from R740 million
(US$104 million) in the September quarter to R839 million (US$124 million) in
the December quarter. This increase of R99 million includes increased
expenditure on the 9 shaft project at Driefontein of R52 million (US$8
million), an additional R35 million (US$5 million) on South Deep`s new mine
development project, and various other technical projects. Expenditure on ore
reserve development at Driefontein, Kloof, Beatrix and South Deep accounted for
R94 million (US$14 million), R121 million (US$18 million), R75 million (US$11
million) and R21 million (US$3 million) respectively. Expenditure on the 9
shaft project at Driefontein and expenditure on the new mine development
project at South Deep amounted to R93 million (US$14 million) and R103 million
(US$15 million) respectively. Also in South Africa was the payment of R400
million (US$60 million) in return for various parties agreeing to relinquish
their rights to the Uncle Harry`s ground adjoining Kloof and South Deep.
Capital expenditure at the international operations increased from R548 million
(US$77 million) to R597 million (US$88 million). Expenditure in Ghana was
similar quarter on quarter where the majority of expenditure was concentrated
on the major projects being the expansion project at Tarkwa of R196 million
(US$29 million) and the Damang cutback at R42 million (US$6 million). In
Australia, capital expenditure increased from R189 million (US$27 million) to
R231 million (US$34 million). This increased expenditure was incurred on
development at Cave Rocks of R29 million (US$4 million) at St Ives, and R6
million (US$1 million) additional development on Kim South at Agnew.
Capital expenditure at the Cerro Corona mine in Peru amounted to R649 million
(US$96 million) in the December quarter compared with R621 million (US$87
million) in the September quarter. Refer to the Capital and Development Project
section for more detail.
Cash proceeds from the sale of Essakane amounted to R1,042 million (US$150
million).
Cash proceeds from the sale of the Venezuelan assets is reflected in the cash
flow as discontinued operations and amounts to R1,219 million (US$176 million)
less capital expenditure of R26 million (US$4 million), giving a net inflow of
R1,193 million (US$172 million).
Net cash outflow from financing activities amounted to R1,069 million (US$152
million). Loan repayments of R1,808 million (US$262 million) include the
repayment of an offshore loan of R1,394 million (US$200 million) and the
repayment of a local loan of R414 million (US$62 million). Loans received
amounted to R727 million (US$108 million) and includes a local loan facility
draw down of R514 million (US$76 million) and the draw down on the Cerro Corona
loan of R213 million (US$32 million).
Net cash outflow for the quarter was R143 million (US$15 million).
After accounting for a translation loss of R6 million (US$6 million), the cash
balance at the end of December was R1,321 million (US$189 million). The cash
balance at the end of September was R1,470 million (US$210 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
(increase in revenue) and Project 100 (reduction in costs). These projects have
proved successful and led to additional projects, Project 100+ (new projects to
further reduce costs) and Project Beyond (strategic supply chain management and
procurement) 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.
Due to the skills shortage, The Mining School of Excellence was initiated at
the Gold Fields Academy to train core skills such as miners, operators, rock
drill operators and production supervisors. The "Jurasic to Joystick" challenge
initiative was launched with the focus on a greater use of technology to
improve safety and productivity. The theory of constraints initiative (to
identify bottlenecks and to improve the flow of resources and material) has
been rolled out at all the South African shafts and, together with simulations,
there is a formidable focus on improving the flow of men, material, equipment
and ore. The objective of these initiatives is to increase mining volumes
whilst maintaining yields as close as possible to life of mine reserve yields.
All these initiatives have been implemented and are ongoing.
Reconciliation of achieved yields to gold reserves
Year/Quarter Sept Dec
F2007* 2007** 2007***
Driefontein:
Life of mine head grade as per
published declarations# 8.5 8.9 8.9
Life of mine head grade adjusted
for estimated metallurgical recoveries 8.2 8.6 8.6
Driefontein (underground yields achieved) 7.6 8.2 7.7
Kloof:
Life of mine head grade as per
published declarations 10.1 10.2 10.2
Life of mine head grade adjusted
for estimated metallurgical
recoveries## 9.8 9.9 9.9
Kloof (underground yields achieved) 8.2 8.1 8.4
Beatrix:
Life of mine head grade as per
published declarations 5.5 5.5 5.5
Life of mine head grade adjusted
for estimated metallurgical
recoveries 5.3 5.3 5.3
Beatrix (underground yields achieved) ### 4.7 4.1 4.3
South Deep:
Life of mine head grade as per
published declarations 6.1 6.1 6.1
Life of mine head grade adjusted
for estimated metallurgical recoveries 5.9 5.9 5.9
South Deep (underground yields achieved) 6.2 6.6 6.2
Note that the F2007 life of mine reserves were based on a pay limit using a
gold price of R100,000 per kilogram, while the current year`s pay limit is
based on a gold price of R120,000 per kilogram.
* Based on the reserve statement at 31 December 2005 and 31 December 2006,
except South Deep which is based on the reserve statement as at 30 June 2006.
The acquisition of the control of South Deep was effective from 1 December
2006.
** Based on the reserve statement as at 31 December 2006.
*** Based on the reserve statement as at 30 June 2007.
# The increase in the Life of Mine head grade from 8.5 to 8.9 grams per ton is
due to an increase in the pay limit, which results in a lower tonnage at higher
grade, and an improved dilution.
## 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 lower yields currently being achieved compared with the Life of mine
estimated yield are as a result of a low mine call factor and increased stoping
widths.
Project 100+
Project 100+ consists of a number of discrete projects focused on ongoing cost
reduction through eliminating inefficiencies and investment in cost reductions.
Examples of these are:
The Eskom demand side management (DSM) project, which consists of 32
sub-projects, is progressing well. Ten operating sub- projects have shifted
more than 60MW of load out of the daily peak tariff period, delivering savings
of approximately R2 million in the December quarter. A further 18 projects are
underway, with at least 5 of them due to provide savings during this financial
year. The estimated savings for financial 2008 will exceed R10 million, growing
to R20 million in financial 2009.
The conversion from diesel to battery power for underground locomotives is
progressing as planned. The delivery of the first locomotives and the
preparation of battery charging bays, together with the training of personnel
is underway. The project will deliver long term cost savings from the higher
efficiency of battery locomotives, and has the added benefit of improving
underground environmental conditions. An underground rail-track upgrade
project, which will improve tramming efficiency underground, is progressing to
plan.
The pump efficiency monitoring project has entered the monitoring phase,
allowing maintenance practices to be modified to initiate maintenance based on
pump efficiency. The first pump station, which has been on-line for five
months, indicates that the anticipated efficiency improvement of 5 per cent can
be expected. This project will deliver savings from reduced electricity
consumption due to improved efficiency, and from a reduction in pump repair
costs.
On the labour management front, we are in the process of rolling out a module
setting standards and norms for effective labour management. A human resource
shared services centre is planned for the West Wits area. The intent is to
reduce shifts lost as a result, of ineffective engagement, medical
examinations, training, as well as improving upon the administration processes
currently practiced.
On the cost reporting and management side, we are aligning our process costing
model with our process flow to optimise our benchmark module. In addition, we
are re-introducing a budget control tool to enhance our control and
accountability of commodity costs.
Project Beyond: Group Integrated Supply chain
and Strategic Sourcing Optimisation
SA Project Beyond Strategic Sourcing and Supply
Initiatives
As previously reported Project Beyond has successfully delivered within its
targeted three year benefits delivery range end fiscal 2007 of R288 million
contracted benefits. These benefits provided some baseline optimisation
buffering effect for real extreme inflationary pressures in the current
markets. In the December quarter increased focus was on cost containment
management and quality assurance optimisation planning. Although less than
general inflation was achieved on overall spend, continued extreme inflation
pressures were experienced in areas such as cement products, food, props,
cyanide, underground services, coal and transport. Cost avoidance negotiated
outcomes have been estimated at around R14 million, which represents savings
against baseline inflation.
During this quarter an estimated R8 million of annualised contracted benefits
was delivered through underground service rates re-negotiated at South Deep,
cable specifications standardisation, backfill switch to alternative product,
improved quality of repair scopes of work and some warranty claims.
Cumulative financial year contracted total cost benefits now stand at R16
million.
For the March quarter focus will continue on the South Deep spend optimisation,
engineering standards and total cost management, and some longer term
optimisation initiatives in areas such as foodstuffs, oils and lubes, and
trackless mining repairs. Further cost inflation pressures are expected in
areas like timber and steel related products.
International Operations Strategic Sourcing and Integrated Supply Chain
Initiatives
As previously reported, total cost initiatives at the International operations,
in parallel with the South African Project Beyond, delivered around US$28
million contracted benefits by the end of fiscal 2007. In the December quarter,
international strategic sourcing and supply chain teams also had a strong focus
on cost containment. Ghana, for example, recorded an estimated US$4 million
cost inflation avoidance (keeping baseline costs fairly flat through long term
negotiations, volume aggregation and risk sharing mechanisms) in spite of
extreme industry inflation in areas such as shipping rates, cyanide and
grinding balls.
During the December quarter strategic sourcing initiatives in Australia
delivered over US$1 million in new and multi-year contracted benefits. New
contracted benefits were achieved in spend categories such as cement and diesel
rebates, explosives delivery optimisation, and from the sale of an obsolete
head frame. Cumulative contracted total cost benefits for fiscal year to date
stand at around US$3 million.
For the March quarter, in Ghana, opportunity assessment focus in areas such as
fuel depot management, maintenance and repair contracts and logistics will
continue. Although Australia will continue with cost optimisation initiatives,
strong focus will still be on cost containment in key long term contract areas
such as cyanide and grinding balls. The newly recruited supply chain management
team in Peru will focus on contract transition planning, staffing and
capability development in line with the planned go live date in the June 2008
quarter.
South African Operations
Royalty bill
On 6 December 2007 the National Treasury released the third draft of the
Mineral and Petroleum Resources Royalty Bill, for a final round of public
comment and parliamentary review. This draft of the Bill confirms gross sales
as the tax base, but takes into account the process of beneficiation which in
the case of gold mines is a deduction of 0.4 per cent. The new royalty rate
structure will be based on a formula that takes into account profitability. The
application of the new formula on this quarter would result in an effective
royalty rate of approximately 4 per cent for the South African operations on a
pro-forma basis using a rand gold price at the time of writing of R200,000
per kilogram. This compares with a fixed rate of 1.5 per cent applied in the
previous draft. The gold industry will be making submissions to the National
Treasury on this matter.
Power shortages (update required)
There was no direct impact on production as a result of electricity load
shedding on the South African operations during the December quarter. However,
the ongoing power shortages in South Africa will require a combination of
aggressive energy saving and energy efficiency projects to achieve a 10 per cent
reduction in electricity use, and possible participation in Eskom`s Emergency
Demand. The 10 per cent reduction by Eskom will impact on gold production and
may regrettably lead to shaft closures and restructuring.
Driefontein
December 2007 September 2007
Gold produced - kg 7,451 8,098
- 000`ozs 239.6 260.4
Yield - underground - g/t 7.7 8.2
- combined - g/t 5.0 5.3
Total cash costs - R/kg 94,390 85,058
- US$/oz 434 373
Gold production in the December quarter at 239,600 ounces was down 8 per cent
when compared with the September quarter`s 260,400 ounces. A 1-day industry
wide strike by employee unions in support of improved safety and a 4 day mine
wide stoppage by the Department of Minerals and Energy as a result of two
tramming related fatalities at 5 shaft had a significant impact on mining
operations. The shortfall in production is attributable to the quality of ore
mined, resulting in the underground yield reducing from 8.2 grams per ton to
7.7 grams per ton for the quarter. Underground tonnage reduced from 924,000
tons in the September quarter to 920,000 tons in the December quarter and
surface tonnage decreased from 608,000 tons to 558,000 tons.
Despite the cumulative 5 day mine wide stoppage main development increased by 1
per cent for the quarter. However, on- reef development decreased 3 per cent
with values down 13 per cent due to a decrease in grade in the Single Band
Carbon Leader in the O-line at 5 shaft, as well as lower than expected values
in the Carbon Leader at 1 shaft.
Operating costs increased by 3 per cent from R724 million (US$102 million) to
R744 million (US$110 million) mainly due to an increase in sweepings and
secondary support, an increase in major repairs and maintenance and an increase
in training costs. Total cash costs increased 11 per cent in rand terms and 16
per cent in US dollar terms from R85,058 per kilogram to R94,390 per kilogram
and from US$373 per ounce to US$434 per ounce respectively and was negatively
affected by the lower production. The increase in unit costs is due to the fact
that during the 4-day mine wide stoppage a corresponding reduction in costs was
not realised due to the high fixed cost nature of input costs. Three additional
voluntary shifts were mined during the quarter.
Operating profit was similar quarter on quarter at R523 million (US$77 million).
Capital expenditure increased from R219 million (US$31 million) to R267 million
(US$39 million) quarter on quarter. This increase was mainly due to an increase
from R41 million (US$6 million) to R93 million (US$14 million) on the 9
sub-vertical shaft deepening project. Shaft sinking on this project is planned
to commence during the March 2008 quarter.
The impact of power shortages on production and costs cannot be accurately
determined at this stage, as such no outlook is given for the March quarter.
Kloof
December September
2007 2007
Gold produced - kg 7,179 7,319
- 000`ozs 230.8 235.3
Yield - underground - g/t 8.4 8.1
- combined - g/t 7.1 7.4
Total cash costs - R/kg 91,029 86,269
- US$/oz 419 378
Gold production at Kloof decreased by 2 per cent from 235,300 ounces in the
September quarter to 230,800 ounces in the December quarter. This was due to a
6 per cent decrease in underground tonnage from 893,000 tons to 839,000 tons
resulting from the industry wide one day strike, an illegal one day strike, an
agreed to memorial day service and various stoppages as a result of
instructions given by the Department of Minerals and Energy through the Section
54 mechanism. All pillar mining was stopped for a period of 5 days as a result
of a fatal accident at 8 shaft and these pillars were fully reviewed. In
addition there was a full 4 day mine wide stoppage to carry out a safety
review. The mine also experienced an underground fire at 2 sub-vertical shaft
which lasted for 16 days. This decrease was partially offset by an increase in
underground yield, which increased from 8.1 grams per ton to 8.4 grams per ton,
and an increase in surface tons milled from 101,000 tons to 169,000 tons at a
slightly improved yield. The increase in surface yield was due to screening of
waste and additional tons processed through a toll treatment arrangement with
South Deep.
Main development decreased by 12 per cent quarter on quarter, with the overall
on-reef development marginally below forecast. Year to date values are in line
with forecast.
Operating costs increased 4 per cent from R661 million (US$93 million) in the
September quarter to R689 million (US$102 million) in the December quarter. The
increase in operating costs was due to increases in contractor costs for
screening and transport of surface ore toll milled at South Deep, and increases
in consumables, maintenance and training costs. Total cash cost increased from
R86,269 per kilogram to R91,029 per kilogram as a result of the lower gold
production and increased costs. In US dollar terms, total cash costs increased
10 per cent from US$378 per ounce to US$419 per ounce.
Operating profit increased from R473 million (US$67 million) in the September
quarter to R528 million (US$78 million) in the December quarter as a result of
the higher gold price.
Capital expenditure at R226 million (US$33 million) increased by 4 per cent
when compared with the previous quarter`s expenditure of R218 million (US$31
million). This was mainly due to increased expenditure on mining equipment (box
hole borer), partially offset by decreased expenditure on the KEA project which
has been put on hold due to a problematic ore body.
The impact of power shortages on production and costs cannot be accurately
determined at this stage, as such no outlook is given for the March quarter.
Beatrix
December September
2007 2007
Gold produced - kg 3,698 3,707
- 000`ozs 118.9 119.2
Yield - underground - g/t 4.3 4.1
Total cash costs - R/kg 108,031 106,393
- US$/oz 497 466
Gold production at Beatrix at 118,900 ounces was in line with the September
quarter. A decrease in tons milled from 913,000 tons to 868,000 tons, was
offset by a 5 per cent increase in yield from 4.1 grams per ton to 4.3 grams
per ton. The decrease in tons milled was due to more selective mining during
the quarter to improve grade, together with labour unrest at 4 shaft and the
one day national strike by the NUM in December. The 4 shaft operations were
closed for 96 hours in November 2007 due to fatalities arising from internal
faction fighting by NUM branch committee supporters. An overall increase in
grade mined contributed to the increased yield, together with the
implementation of the external mine call factor review recommendations of
improved drilling and blasting practices, and conversion to a more suitable
explosive type.
Development decreased by 5 per cent to 10,652 metre in the current quarter and
was impacted by lost days. Main on reef development increased by 29 per cent to
2,495 metres in the December quarter. The development values increased from
831cm.g/t to 1,135cm.g/t as a result of current raises traversing higher
grades.
Operating costs increased by 1 per cent quarter on quarter, from R416 million
(US$59 million) in the September quarter to R420 million (US$62 million) in the
December quarter. The increase in costs was mainly due to the overall increase
in the rate of major contracts for additional drilling and maintenance, and to
improved sweepings. Total cash costs increased 2 per cent from R106,393 per
kilogram to R108,031 per kilogram. In US dollar terms total cash costs
increased 7 per cent from US$466 to US$497 per ounce.
Beatrix posted an operating profit of R209 million (US$31 million) for the
quarter compared with R163 million (US$23 million) in the September quarter as
a result of the higher gold price.
Capital expenditure at R142 million (US$21 million) increased marginally when
compared with the previous quarter`s expenditure of R134 million (US$19
million) due to increased capital development at the West and South sections.
The impact of power shortages on production and costs cannot be accurately
determined at this stage, as such no outlook is given for the March quarter.
South Deep
December September
2007 2007
Gold produced - kg 2,104 2,312
- 000`ozs 67.6 74.3
Yield - underground - g/t 6.2 6.6
- combined - g/t 5.1 4.8
Total cash costs - R/kg 147,719 132,223
- US$/oz 680 579
Gold production at South Deep decreased by 9 per cent from 74,300 ounces in the
September quarter to 67,600 ounces in the December quarter. This was mainly due
to a decrease in the underground yield from 6.6 grams per ton to 6.2 grams per
ton and a decrease in surface ore processed from 150,000 tons to 83,000 tons.
The decrease in underground yield was due to a reduction in flexibility on the
VCR reef where a geological fault has reduced stoping availability, while
surface ore sources have now been depleted. Tons milled from underground were
similar at 330,000 tons for the quarter.
Development at South Deep increased by 16 per cent from 1,684 metres to 1,946
metres for the December quarter. The mobilisation of the mechanised crews to
develop below 95 level infrastructures commenced in December.
Operating costs increased by 2 per cent for the quarter from R314 million
(US$44 million) to R320 million (US$47 million). This was mainly due to
increased development and the effects of inflationary increases on commodity
prices. As a result of the decreased gold production, total cash costs
increased by 12 per cent from R132,223 per kilogram (US$579 per ounce) to
R147,719 per kilogram (US$680 per ounce).
Operating profit decreased from R45 million (US$6 million) in the September
quarter to R36 million (US$5 million) in the December quarter as a result of
the lower gold production, partially offset by the increased gold price.
Capital expenditure increased in line with forecast from R169 million (US$24
million) to R204 million (US$30 million). The increase in expenditure was
mainly on equipment related to the new mine development project and ore reserve
development.
Over the last 12 months there has been a full strategic review and we have come
to the conclusion that the current scope of mining activity at South Deep will
have to be changed in order to achieve optimal production build-up. There are a
number of reasons for this.
The Feasibility production build-up is being affected by:
The lack of permanent shaft infrastructure and services for the handling of
dirty water and ore at the Twins below 95 level;
Development on all levels is behind schedule, especially below 95 level
due to the above mentioned point;
The Ventersdorp Contact Reef (VCR) horizon having now been largely depleted
above 95 level due to the Waterpan fault on the western side;
The lack of sufficient geological information below 95 level which in turn
affects the down-dip mining strategy.
A number of scenarios are being considered to address the above issues.
These include a detailed examination on how to speed up development and
shaft equipping, and increase the rate of de-stress mining.
The Kloof - South Deep optimisation ("KSDO") project was completed during the
quarter, which involved a high-level study on six different scenarios. The
results of the study indicate that Scenario KSDO 1 should be advanced to a
pre-feasibility level. This scenario envisages combining the Kloof and South
Deep mining operations, whereby 330ktpm of ore will be mined through the South
Deep infrastructure, and 150ktpm through the Kloof 4 shaft complex.
Interim approval has been given to proceed with the development of the initial
access from Kloof 4 sub-vertical on 39 level towards South Deep, this level
being marginally deeper than 110 level at South Deep.
International Operations
Ghana
Tarkwa
December September
2007 2007
Gold produced - 000`ozs 158.3 154.0
Yield - heap leach - g/t 0.7 0.8
- CIL plant - g/t 1.4 1.5
- combined - g/t 0.9 0.9
Total cash costs - US$/oz 413 423
Gold production increased by 3 per cent from 154,000 ounces in the September
quarter to 158,300 ounces in the December quarter. The abnormally high seasonal
rainfall that negatively affected production in the September quarter subsided
during the last 6 weeks of the December quarter. This had a positive effect on
production, resulting in a 7 per cent increase in plant throughput from 5.21
million tons to 5.59 million tons, and a 14 per cent improvement in mining
volumes.
Total tons mined, including capital stripping, increased from 27.7 million tons
to 31.5 million tons. Ore mined increased from 4.7 million tons to 5.5 million
tons. The mined grade was slightly lower at 1.24 grams per ton compared with
last quarter`s 1.27 grams per ton. The overall strip ratio for the quarter was
lower at 4.59 compared with 4.88 in the September quarter, mainly due to the
increased ore mined.
Total feed to the heap leach sections was 4.17 million tons compared with 3.91
million tons for the September quarter. Heap leach yield for the quarter was
0.7 grams per ton compared with 0.8 for the September quarter. The heap leach
section produced 94,000 ounces compared with the 92,300 ounces achieved in
the September quarter. The total feed to the CIL plant was 1.42 million
tons compared with 1.30 million tons in the September quarter. CIL yield
was 1.4 gram per ton against 1.5 for the September quarter. The CIL plant
produced 64,300 ounces in the December quarter compared with 61,700 ounces
in the September quarter. There was a net gold-in-process build-up of 2,600
ounces for the quarter, which was mainly at the South heap leach facility.
Operating costs, including gold-in-process movement, increased from US$64
million (R451 million) to US$67 million (R453 million) in the September
quarter. The increase in cost was matched by an increase in tonnages treated,
keeping operating cost per ton processed at similar levels to last quarter.
Operating profit was 61 per cent higher at US$61 million (R414 million),
compared with US$38 million (R270 million) in the September quarter. This was
in line with the higher gold production and increased gold price.
Capital expenditure increased from US$43 million (R307 million) to US$46
million (R314 million) for the quarter, with continued expenditure on the phase
5 heap leach project and the CIL expansion project at US$8 million and US$20
million respectively. The capital cost for the CIL expansion project has been
revised from US$126 million to US$161 million as a result of currency
fluctuations, cost escalation and minor scope changes to the project. The late
supply of steel from South Africa as a result of the power shortages may delay
the start-up of the project from the September 2008 quarter to the December 2008
quarter. Expenditure on the pre-stripping at the Teberebie cutback was similar
to the September quarter at US$11 million.
Gold production is forecast to increase by about 6 per cent for the March
quarter compared to the December quarter. Total cash costs are expected to
increase marginally due to an expected increase in fuel and power tariffs,
which will offset the positive impact of the gold production increase.
Damang
December September
2007 2007
Gold produced - 000`ozs 44.2 47.4
Yield - g/t 1.2 1.3
Total cash costs - US$/oz 605 468
Gold production decreased 7 per cent from 47,400 ounces in the September
quarter to 44,200 ounces in the December quarter. This decrease was due to the
lower head grade, which decreased from 1.40 grams per ton in the September
quarter to 1.35 grams per ton in the December quarter, coupled with a 2 per
cent decrease in mill feed tonnage. The drop in grade was due to the grade from
the B3 stockpile proving lower than anticipated.
Total tons mined, including capital stripping, increased from 7.1 million tons
in the September quarter to 8.0 million tons for the December quarter. This
increase was as a result of mining additional waste in order to build an
alternate access ramp to the Damang pit. Ore mined increased from 794,000 tons
to 978,000 tons in the December quarter due to an increase in ore tons mined
from the Damang pit cutback and Tomento pits. The resultant strip ratio was
7.20 compared with the 7.97 in the September quarter.
The mill throughput for the quarter at 1.10 million tons was marginally lower
than the 1.12 million tons in the September quarter, mainly due to power
outages following a fire at a transformer. The primary crusher was once again
running at design capacity. The increased volumes from the primary crusher
allowed for the expansion of the crushed ore stockpile, which increased from
160,000 tons to 304,000 tons during the quarter. This should result in improved
operational and blend flexibility in plant feed.
Operating costs, including gold-in-process movements, increased from US$22
million (R155 million) to US$27 million (R183 million). The main factors
contributing to the increase in operating costs were the higher diesel price,
increased power tariff and the substitution of lower cost stockpiles with higher
cost ore from the pits and lower grade stockpile ore compared with the previous
quarter, increased plant maintenance costs, and an increase in the mining
contractors cost due to cost increases impacted by longer haulage distances.
Total cash costs increased from US$468 per ounce to US$605 per ounce reflecting
the higher operating costs and lower gold production.
Operating profit for the quarter at US$9 million (R58 million) was
slightly lower than the US$10 million (R69 million) achieved in the
September quarter.
Capital expenditure at US$8 million (R51 million) was similar to the
September quarter with the majority once again incurred on the
Damang pit cutback.
The eastern haul ramp in the Damang pit cutback slipped at the end of January
and is inaccessible. However, gold production and costs are expected to
remain at similar levels in the March quarter when compared with the December
quarter.
Australia
St Ives
December September
2007 2007
Gold produced - 000`ozs 110.0 102.4
Yield - heap leach - g/t 0.7 0.5
- milling - g/t 2.6 2.5
- combined - g/t 1.8 1.8
Total cash costs - A$/oz 584 650
- US$/oz 521 551
Gold produced for the quarter increased in line with previous guidance from
102,400 ounces to 110,000 ounces. This was mainly due to a 6 per cent increase
in tons processed, as the combined yield was unchanged at 1.8 grams per ton.
Gold produced from the Lefroy mill increased from 92,100 ounces to 95,200
ounces. Tons milled were unchanged at 1.15 million tons. Yield increased from
2.5 grams per ton to 2.6 grams per ton in the quarter due to the higher grade
underground ore and a reduction in processing stockpiled, low grade material.
Heap leach production was 14,800 ounces this quarter, up 43 per cent when
compared with the September quarter`s 10,300 ounces. Tons treated from heap
leach increased from 612,000 tons to 708,200 tons and recoveries increased from
59 per cent to 72 per cent with the introduction of better leaching oxide
material following commissioning of the agglomeration drum in the previous
quarter.
During the quarter 3.7 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 3.5 million BCMs in the previous
quarter. Open pit operations produced 1.4 million tons of ore for the quarter,
compared with 1.2 million tons for the September quarter. The majority of ore
was mined from the Leviathan, North Revenge and Bahama pits. The open pit ore
grade decreased from 1.8 grams per ton in the September quarter to 1.7 grams
per ton in the December quarter. The Leviathan pit intersected large ore
volumes at higher levels than planned resulting in increased tonnages, and the
Bahama pit achieved full production. The average strip ratio including capital
waste was 5.7 in the December quarter compared with 6.4 in the September
quarter.
Underground operations mined 254,000 tons of ore at 5.4 grams per ton for the
quarter, compared with 247,000 tons at 5.0 grams per ton in the previous
quarter. The majority of this increase was due to Argo accessing the higher
grade portion of the ore body, and Leviathan mining high grade remnants from
the East Repulse lode.
Operating costs, including gold-in-process movements, decreased from A$69
million (R413 million) in the September quarter to A$65 million (R394 million)
in the December quarter. This decrease was mainly due to increased stockpiles
at Bahama adding GIP to the balance sheet, and a net decrease in maintenance
costs, which offset the increased third party royalty due to the higher gold
price. Total cash costs decreased from A$650 per ounce (US$551 per ounce) in
the September quarter to A$584 per ounce (US$521 per ounce) in the December
quarter.
Operating profit increased from A$14 million (R86 million) to A$32 million
(R193 million) due to the increased gold production, lower costs and increased
gold price.
Capital expenditure increased, from A$25 million (R152 million) to A$29m (R175
million) quarter on quarter. Mine development capital of A$18 million (R110
million) included commencement of the second underground portal and increased
development activity at the Cave Rocks underground mine, the continuation of
development of the Argo and Belleisle underground mines and increased waste
mining at the Leviathan pit. These increases were slightly offset by a decrease
in exploration expenditure.
Gold production and total cash costs for the March quarter are expected to be
similar to the December quarter. Development of the new underground mines at
Cave Rocks and Belleisle remains a focus to return production to around 120,000
ounces per quarter by mid calendar 2008.
Agnew
December September
2007 2007
Gold produced - 000`ozs 49.2 51.0
Yield - g/t 4.9 4.7
Total cash costs - A$/oz 470 507
- US$/oz 419 430
Gold production decreased 4 per cent from 51,000 ounces in the September
quarter to 49,200 ounces in the December quarter. This was mainly due to a 6
per cent decrease in mill throughput from 334,000 tons to 313,000 tons. This
was partially offset by an increase in yield from 4.7 grams per ton to 4.9
grams per ton. The lower processing throughput was due to a planned 3 day mill
shut down in December, electrical downtime caused by a severe storm and lower
throughput from treating more ore from Songvang which reduces volumes through
the plant due to the high level of silver.
Ore mined from underground decreased from 120,000 tons in the September quarter
to 89,000 tons in the December quarter. Difficulties in opening up new stopes
due to poor ground conditions at Kim South, which effectively halved the output
quarter on quarter from 90,000 tons to 45,000 tons was the main cause of this
decrease. By the end of the quarter these difficulties had largely been
overcome and stopes brought back into production. The shortfall from Kim South
was partially offset by higher production from Main Lode, which increased from
30,000 tons in the September quarter to 36,000 tons in the December quarter.
Grade was unchanged at 9.1 grams per ton.
Operating costs, decreased from A$25 million (R149 million) in the September
quarter to A$18 million (R106 million) in the December quarter mainly due to
the completion of mining at Songvang and the decreased volumes from
underground. The increase in the gold-in-process charge from A$3 million (R19
million) to A$14 million (R82 million) was due to an increase in processing ore
from the Songvang stockpile. Total cash costs decreased from A$507 per ounce
(US$430 per ounce) to A$470 per ounce (US$419 per ounce) for the December
quarter due to the cessation of mining Songvang during the previous quarter.
Operating profit decreased from A$14 million (R85 million) in the September
quarter to A$13 million (R76 million) predominantly due to reduced production
from the high grade Kim South section.
Capital expenditure increased from A$6 million (R38 million) in the September
quarter to A$9 million (R56 million) in the December quarter. This increase was
attributed to site power upgrade works, increased underground capital
development and additional underground extensional exploration drilling.
Gold production for the March quarter is expected to be similar to the December
quarter. Total cash costs are expected to increase significantly quarter on
quarter on account of lower average grades from the stockpiled Songvang ore.
Discontinued Operations
Venezuela
Choco 10
December September
2007 2007
Gold produced - 000`ozs 18.1 15.7
Yield - g/t 1.6 1.2
Total cash costs - US$/oz 830 684
At Choco 10 results for the December quarter are up until the end of November,
the effective date of sale. Gold produced increased from 15,700 ounces to
18,100 ounces as a result of an increase in yield to 1.6 grams per ton,
compared with 1.2 grams per ton in the September quarter.
Operating costs including gold-in-process increased from R86 million (US$12
million) to R114 million (US$17 million) and cash costs increased from US$684
per ounce to US$830 per ounce.
Operating profit increased from R15 million (US$2 million) to R85 million
(US$12 million) and capital expenditure amounted to R30 million (US$5 million)
compared with R40 million (US$6 million) in the September quarter.
Quarter ended 31 December 2007
compared with quarter ended
31 December 2006
Group attributable gold production decreased from 993,000 ounces for the
quarter ended December 2006 to 960,000 ounces in the December 2007 quarter.
At the South African operations gold production increased from 654,000 to
657,000 ounces. Kloof`s production was similar at 231,000 ounces. Driefontein`s
production decreased from 247,300 ounces to 239,600 ounces and Beatrix from
149,500 ounces to 118,900 ounces. This shortfall was offset by the increase at
South Deep from 26,900 ounces to 67,600 ounces as the December quarter 2006
only includes one month`s production as control was acquired on 1 December
2006.
At the international operations total gold production decreased from 408,000
ounces in December quarter 2006 to 362,000 ounces in December quarter 2007. In
Ghana, Tarkwa`s gold production decreased from 178,800 ounces to 158,300 due to
a reduction in high grade ore tonnages. At Damang, gold production decreased
from 51,600 ounces to 44,200 ounces due to an increase in ore from the low
grade stockpile due to a reduction in available high grade ore. In Australia,
St Ives` gold production decreased from 124,600 ounces to 110,000 ounces due to
lower grades partly offset by increased tonnages. At Agnew, gold produced
decreased from 53,000 ounces to 49,200 ounces due to lower volumes mined from
the high grade Kim mine.
Revenue increased by 14 per cent in rand terms from R4,753 million (US$644
million) to R5,430 million (US$801 million). The higher average gold price of
R170,488 per kilogram (US$784 per ounce) compared with R144,519 per kilogram
(US$609 per ounce) achieved in 2006 more than offset the lower production. The
rand/US dollar strengthened 8 per cent from R/US$7.38 to R/US$6.76 quarter on
quarter.
Operating costs, including gold-in-process movements, increased from R2,807
million (US$380 million) to R3,392 million (US$501 million), an increase of
R585 million (US$121 million) or 21 per cent. This increase was mainly due to
the acquisition of control of South Deep on 1 December 2006, which added R229
million (US$34 million) to costs in the December quarter 2007. Excluding South
Deep the increase was 13 per cent. The majority of the balance of the increase
was due to above inflation wage increases in South Africa, significant price
increases of important inputs - namely fuel, steel and cyanide to mention but a
few at all the operations, increased power costs in Ghana and increased
maintenance costs on the owner mining fleet at Tarkwa. Costs were also higher
as a result of the increased royalty at St Ives. Total cash costs for the Group
in rand terms, increased 22 per cent from R83,334 per kilogram (US$351 per
unce) to R101,532 per kilogram (US$467 per ounce).
At the South African operations, operating costs increased by 23 per cent from
R1,773 million in the quarter ended December 2006 to R2,174 million in the
quarter ended December 2007. The increase excluding South Deep was 10 per cent,
and was due to the above inflation wage increases effective from 1 July 2007,
and the increase in certain input costs such as steel and food, partially
offset by the cost saving initiatives implemented over the year.
Total cash costs increased 21 per cent from R83,952 per kilogram to R101,170
per kilogram due to the inclusion of South Deep, which averaged R147,719 per
kilogram in the December quarter 2007, as well as the cost increases and the
lower production at the other South African operations. Excluding South Deep,
total cash costs increased from R82,213 per kilogram to R95,826 per kilogram an
increase of 17 per cent.
At the international operations total cash costs increased by 30 per cent from
US$347 per ounce to US$470 per ounce, mainly due to higher power costs in Ghana
due to tariff increases, increased maintenance costs of the mining fleet at
Tarkwa, and the combined effect of higher stripping ratios and lower grades,
together with the increased cost of inputs driven by the commodities boom. This
was exacerbated by the 13 per cent decrease in gold output from the
international operations.
Operating profit increased from R1,946 million (US$264 million) to R2,037
million (US$300 million), with the benefit of the higher gold price offset by
the lower production and the increase in costs.
After accounting for taxation, sundry items and the gain on the sale of
Essakane and the Venezuela assets in the December 2007 quarter, the net
earnings increased from R767 million (US$104 million) in the December 2006
quarter to R1,938 million (US$281 million) for the December quarter 2007.
Earnings excluding gains and losses on foreign exchange, financial instruments,
exceptional items and discontinued operations increased from R579 million
(US$78 million) in December quarter 2006 to R603 million (US$88 million) in the
December quarter 2007.
Capital and development projects
Cerro Corona
During the quarter, the project, regrettably, sustained a fatality on 21
December when a contractor attempted to dislodge a bound cable being used to
pull conductor wiring between towers on the 220kV transmission line between
Cajamarca Norte and Cerro Corona substations. Until that date, the project had
expended 11.9 million man-hours since October 2005 with no Lost Time Injuries
(LTI`s).
Environmental permitting activities continued during the period including EIA
submittals for concentrate transport at the Port of Salaverry and a general
revision to account for engineering and field changes. Processes to approve
these permits are in hand to avoid this affecting project start up.
Community relations remained relatively calm and stable; however, on-going
monitoring of the area of influence as well as external areas due to increasing
national protests against mining remains a priority. As previously advised the
greatest community risk will be encountered as the level of employment in
construction activities declines when construction activities ramp down through
the middle of this year. Specific attention has been given to preparation and
execution of a strategic plan to mitigate impacts for the decline of labour
opportunities as the project moves into operation. Although communities
understand this transition, the goal is to develop other livelihoods based upon
GFLC`s economic development programmes. At the end of the quarter, following
extensive negotiations with a local community, an alternate access road around
the project area was opened allowing the closure of an existing community foot
path thereby securing the entire project site perimeter and allowing activities
in the tailings management facility (TMF) to be undertaken more safely and with
greater efficiency.
Mining activities remain focused on generating construction materials for
various site structures, in particular the tailing dam, haul roads and run of
mine stockpile. The mining fleet continued working in three rock quarries
within the project boundary as well as the Cerro Corona surface mine. A total
of 3.40 million tons were mined in these three quarries during the December
quarter while 1.09 million tons were excavated from the Cerro Corona surface
mine in the same period (69 per cent overburden, 21 per cent oxide ore, and 10
per cent sulphide ore). Unit mining cost performance, at US$1.72 per ton, was
in line with expectations. Mining activities are not on the project critical
path.
During December 2007, the Company announced an increase in the forecast
construction capital cost to US$421 million and extension of the completion
date to the middle of the fourth quarter of financial 2008. The delay and cost
increase was attributed primarily to complications in the TMF embankment
construction (generation and placement of construction materials) and poor
progress on final erection of the concentrator.
Subsequent to that announcement, and despite the impact of the year-end
holidays, good progress has been made in resolving these issues.
On the construction front, certain construction contracts and work programs
were restructured and re-resourced. So far progress against this program has
been satisfactory. This program delivers mechanical, electrical and
instrumentation completion of the plant in April, allowing in excess of a month
for cold commissioning activities before the expected hot commissioning with
the introduction of ore into the process plant in May. At present the area of
greatest focus is completion of the flotation circuit where considerable
resources are being deployed.
Beyond this, several major milestones were achieved during the quarter,
primarily completion of structural concrete and steel erection, initiation of
process piping, completion of process reagent and water tankage as well as
concentrate handling facilities. Major electrical equipment was set and
termination of cabling runs begun. Several areas were subjected to punch
listing in anticipation of mechanical turnover, to commence cold commissioning
in certain areas. Tower erection for the 220kV power line was completed while
conductor was pulled over half the line length. Work in two main substations
was also significantly advanced. Engineering is now complete, save for field
changes. Procurement is complete and expediting of a short list of equipment is
underway. No items have been identified that would affect start-up at this
stage.
In respect of construction of the TMF embankment, good progress was made in
resolving the difficulties in mining and production (through crushing and
screening) of acceptable quality construction materials for the two filters
zones. Progress has been sufficient that stockpiles of these materials are now
being generated and the critical path on this construction, and the limit to
rate of vertical rise of this embankment, has now moved to placement of the
clay in the impermeable zone in the embankment. With new sources of clay opened
up during the quarter, the critical step is now placement of this material to
the strict construction standards. Current placement rates of this have reached
4,200 BCMs per week, with some 57,000 BCMs still required to complete the first
stage of this embankment, indicating a further 14 weeks of construction.
However rates to date have been limited by rain but placement activities and
supervision are being modified to reduce the impact of this given a further 3
to 4 months of the rainy season are expected.
In respect of the overall schedule the completion of the process plant remains
the critical path, but remains on track to achieve the plant start up in May
2008. While construction activities of the TMF embankment to reach a height, to
impound 500,000 cubic metres of water is essential before the end of the rainy
season, this aspect is not expected to affect start up, but is required to
support the operation through the dry season from May to October. The Peruvian
power regulator has imposed a short term limit to power draw by this project to
3Mw. The restriction is planned to be lifted in the March quarter and is not
expected to affect start-up.
Capital expenditure on construction activities in the quarter was US$68
million. Total cumulative capital expenditure through the end of the quarter
reached $330 million and cumulative construction commitments reached US$366
million. Capital construction cost at completion is still forecast at US$421
million.
In addition to construction completion and commissioning, a key priority for
the March quarter is to ensure the transition from the project to operations
stage. The process has already been started, with a dedicated team and a
detailed plan already under implementation.
Exploration and corporate development
Gold Fields completed the sale of its 60 per cent stake in the Essakane project
in Burkina Faso. Refer the Corporate section below for more detail.
At the 25 per cent owned Sankarani project in south-western Mali, operated by
partner Glencor Mining plc (AIM: "GEX"), an exploration programme including
litho-geochemical sampling by means of air core drilling, an airborne
geophysical survey and over 19,000 metres of RAB drilling has been planned
which, upon completion, should bring Gold Fields` share in the project to 51
per cent. At the 80 per cent owned Kisenge project in the southern DRC, the
third phase of drilling was initiated at the Kajimba, Mpokoto, Lungenda and
Katompe targets. A ground magnetic and induced polarisation survey was
completed at Kajimba and Mpokoto, with additional geophysical work performed on
other parts of the tenements.
In Kyrgyzstan, where Gold Fields has an option to joint venture the Talas
project via its equity placement in Lero Gold Corp (TSX-V: "LER"), 5,000 metres
of drilling and 90 kilometres of induced polarisation geophysics at the
Taldybulak Central, Tokhtanysai and Korgontash Cu-Au porphyry and skarn targets
were completed. In Slovakia where Gold Fields has a right of first refusal to
joint venture the Biely Vrch project through our equity holdings in EMED Mining
Public Limited (AIM: "EMED"), in-fill drilling was completed on the main
prospect along with scout drilling on the Kralova prospect.
At the Central Victoria project in Australia, the aircore and diamond drilling
programme was completed and results are currently being compiled and
interpreted. At the Gobondery joint venture in New South Wales where Gold
Fields is earning an 80 per cent stake, two "blind" porphyry targets were
identified and diamond drilling commenced to assess their potential. In South
Australia at the Delamarian project, an exploration joint venture agreement was
executed with Australian Zircon NL (ASX: "AZC") to farm-in to 80 per cent of
the gold rights on the Pine Valley licenses which lie adjacent to our
tenements. Aircore drilling continued on Gold Fields ground outside the joint
venture license holdings for the quarter. In Central Queensland at the Mt
Carton joint venture with Conquest Mining Limited (ASX: "CQT"), where Gold
Fields is earning a 51 per cent stake in eight exploration tenements
surrounding Conquest`s Silver Hill discovery, diamond drilling has commenced on
ground to the southeast and east of Silver Hill.
Geophysical data, soil geochemistry samples and geological mapping was
collected on surrounding parts of the joint venture ground and are ongoing.
In Venezuela, the exploration holdings in the El Callao District were sold
along with the Choco 10 mine to Rusoro Mining Limited.
At the Dominican Republic joint venture where Gold Fields is earning a 60 per
cent initial interest in a portfolio of properties with partner GoldQuest
Mining Corp (TSX-V: "GQC"), scout drilling was completed at the Cerro Dorado
target and is currently in progress at the Piedra Iman target. In Peru at the
Consolidada de Hualgayoc joint venture with Compania de Minas Buenaventura SA
(NYSE: "BVN"), underground drilling was completed at Cerro Jesus. In Central
Chile at the joint venture with a private Chilean company (Gold Fields earning
70 per cent), field work commenced to assess several selected high sulphidation
epithermal and porphyry targets.
In Australia, near-mine extensional drilling and brownfields exploration at
Agnew and St Ives continued with promising drilling results being returned.
Good progress was also made with the new Athena and Nelson`s Fleet discoveries
at St Ives. In Ghana, the main focus has been on drilling for mineral resource
conversion at Rex Main and Bonsa North located on the Damang Tenements, and
brownfields exploration at Rex South and four other near-site prospects.
Corporate
Award in Socially Responsible Investment Index for
2007
On 27 November 2007 the JSE`s Socially Responsible Investment (SRI) Index,
which assesses the environmental, social and economic sustainability practices
and corporate governance of listed companies, announced Gold Fields as one of
the Best Performers of 2007.
Gold Fields is committed to the responsible stewardship of natural resources
and the ecological environment for present and future generations, and aims to
continually implement a comprehensive strategy to maximise positive
environmental or socio-economic outcomes to ensure a long-term future.
Sale of Essakane project
On 27 November 2007 Gold Fields sold its 60 per cent stake in the Essakane
project located in Burkina Faso, West Africa, to its partner in the project,
Orezone Resources Inc. ("Orezone") (TSX:OZN).
Orezone paid Gold Fields US$150 million in cash and issued 41,666,667 common
shares having an aggregate subscription price of US$49 million to Gold Fields
wholly-owned subsidiary Gold Fields Essakane (BVI) Limited. Following the
acquisition, Gold Fields owns 41,666,667 common shares of Orezone, representing
12.2 per cent of Orezone`s issued and outstanding common shares. Gold Fields
acquired the common shares of Orezone as part of the proceeds of the sale
of the Essakane project and has no present intention of acquiring
ownership of, or control over, additional securities of Orezone.
Sale of Venezuelan assets
On 3 December 2007, the transaction announced on 12 October 2007, whereby Gold
Fields has disposed of all its assets in Venezuela to Rusoro Mining Ltd.
(Rusoro) (TSXV: RML) was successfully completed.
Gold Fields received US$180 million in cash and 140 million newly- issued
Rusoro shares, which represent approximately 37 per cent of the outstanding
shares of Rusoro.
Preference share funding
After the December cost close Gold Fields secured R1.2 billion 3-year and one-
day, non-convertible, redeemable, preference share funding from FirstRand Bank
Limited (acting through its Rand Merchant Bank division) at a maximum rate of 61
per cent of prime.
Final accounting for South Deep acquisition
The purchase price allocation of the South Deep acquisition has been finalised
in accordance with IFRS 3. The provisional goodwill allocation, as disclosed in
the annual report of R4.4 billion is unchanged.
Dividend
Given the current uncertainty regarding electricity supply and the potential
impact on production, the Gold Fields Board felt that, notwithstanding the
Company`s dividend policy, it would not be prudent to declare an interim
dividend.
Outlook
At the South African operations, subject to the availability of power which at
the time of writing is 80 per cent, production is likely to be about 20 to 25
per cent lower than the December quarter. This is due to various factors, the
slow start up after the Christmas break, the week long stoppage due to the power
shortage in January and production losses across all the South African
operations due to continued power shortages. At the international operations
production is forecast to increase marginally and costs will be slightly higher
due to increases in power and diesel input costs.
Basis of accounting
The unaudited results for the quarter have been prepared on the International
Financial Reporting Standards (IFRS) basis. The detailed financial, operational
and development results for the December 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
except for the adoption of applicable revised and/or new standards issued by
the International Accounting Standards Board.
I.D. Cockerill
Chief Executive Officer
31 January 2008
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand Quarter
December September December
2007 2007 2006
Revenue 5,429.7 5,018.2 4,753.1
Operating costs, net 3,392.4 3,301.9 2,806.9
- Operating costs 3,341.2 3,291.9 2,896.2
- Gold inventory change 51.2 10.0 (89.3)
Operating profit 2,037.3 1,716.3 1,946.2
Amortisation and depreciation 762.7 771.1 726.1
Net operating profit 1,274.6 945.2 1,220.1
Net interest paid (92.2) (95.1) (36.5)
(Loss)/gain on foreign exchange (5.1) (12.3) 263.6
(Loss)/gain on financial instruments (187.6) 8.9 (19.2)
Other (10.2) (11.3) (55.7)
Exploration (78.7) (84.6) (59.7)
Profit before tax and exceptional items 900.8 750.8 1,312.6
Exceptional gain 1,416.6 29.3 7.8
Profit before taxation 2,317.4 780.1 1,320.4
Mining and income taxation 418.4 289.1 464.6
- Normal taxation 284.5 223.8 247.4
- Deferred taxation 133.9 65.3 217.2
Net profit from continued operations 1,899.0 491.0 855.8
Income from discontinued operations 45.2 (8.2) (14.9)
Profit on sale of Venezuelan assets 74.2 - -
Net profit 2,018.4 482.8 840.9
Attributable to:
- Ordinary shareholders 1,938.0 428.6 766.8
- Minority shareholders 80.4 54.2 74.1
Exceptional items:
Profit on sale of investments 1,414.7 - 4.7
Profit on sale of assets 1.9 29.3 2.8
Impairment of assets - - 0.3
Total exceptional items 1,416.6 29.3 7.8
Taxation (8.3) (11.2) (2.7)
Net exceptional items after tax and
minorities 1,408.3 18.1 5.1
Net earnings 1,938.0 428.6 766.8
Net earnings per share (cents) 297 66 148
Diluted earnings per share (cents) 277 62 147
Headline earnings 455.5 410.5 761.7
Headline earnings per share (cents) 70 63 147
Net earnings excluding gains and losses
on foreign exchange, financial instruments,
exceptional items and discontinued
operations 602.9 407.7 578.5
Net earnings per share excluding gains
and losses on foreign exchange, financial
instruments, exceptional items and
discontinued operations (cents) 93 62 112
Gold sold - managed kg 31,848 32,306 32,889
Gold price received R/kg 170,488 155,333 144,519
Total cash costs R/kg 101,532 98,465 83,334
South African Rand Six months to
December December
2007 2006
Revenue 10,447.9 9,411.7
Operating costs, net 6,694.3 5,486.8
- Operating costs 6,633.1 5,590.3
- Gold inventory change 61.2 (103.5)
Operating profit 3,753.6 3,924.9
Amortisation and depreciation 1,533.8 1,389.7
Net operating profit 2,219.8 2,535.2
Net interest paid (187.3) (28.8)
(Loss)/gain on foreign exchange (17.4) 260.7
(Loss)/gain on financial instruments (178.7) (28.6)
Other (21.5) (81.6)
Exploration (163.3) (124.4)
Profit before tax and exceptional items 1,651.6 2,532.5
Exceptional gain 1,445.9 16.5
Profit before taxation 3,097.5 2,549.0
Mining and income taxation 707.5 916.1
- Normal taxation 508.3 485.0
- Deferred taxation 199.2 431.1
Net profit from continued operations 2,390.0 1,632.9
Income from discontinued operations 37.0 (31.5)
Profit on sale of Venezuelan assets 74.2 -
Net profit 2,501.2 1,601.4
Attributable to:
- Ordinary shareholders 2,366.6 1,464.6
- Minority shareholders 134.6 136.8
Exceptional items:
Profit on sale of investments 1,414.7 5.1
Profit on sale of assets 31.2 11.1
Impairment of assets - 0.3
Total exceptional items 1,445.9 16.5
Taxation (19.5) (5.8)
Net exceptional items after tax and minorities 1,426.4 10.7
Net earnings 2,366.6 1,464.6
Net earnings per share (cents) 363 289
Diluted earnings per share (cents) 339 288
Headline earnings 866.0 1,453.9
Headline earnings per share (cents) 133 287
Net earnings excluding gains and losses on
foreign exchange, financial instruments,
exceptional items and discontinued operations 1,010.6 1,296.8
Net earnings per share excluding gains and
losses on foreign exchange, financial
instruments, exceptional items and discontinued
operations (cents) 155 256
Gold sold - managed kg 64,154 65,668
Gold price received R/kg 162,857 143,322
Total cash costs R/kg 99,988 81,400
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
United States Dollars Quarter
December September December
2007 2007 2006
Revenue 800.8 706.8 644.1
Operating costs, net 500.9 465.1 380.3
- Operating costs 493.5 463.7 392.4
- Gold inventory change 7.4 1.4 (12.1)
Operating profit 299.9 241.7 263.8
Amortisation and depreciation 112.7 108.6 98.4
Net operating profit 187.2 133.1 165.4
Net interest paid (13.6) (13.4) (4.9)
(Loss)/gain on foreign exchange (0.8) (1.7) 35.7
(Loss)/gain on financial instruments (27.1) 1.3 (2.6)
Other (1.5) (1.6) (7.5)
Exploration (11.7) (11.9) (8.1)
Profit before tax and exceptional items 132.5 105.8 178.0
Exceptional gain 204.5 4.1 1.1
Profit before taxation 337.0 109.9 179.1
Mining and income taxation 61.3 40.7 62.9
- Normal taxation 41.8 31.5 33.5
- Deferred taxation 19.5 9.2 29.4
Net profit from continued operations 275.7 69.2 116.2
Income from discontinued operations 6.5 (1.2) (2.0)
Profit on sale of Venezuelan assets 10.7 - -
Net profit 292.9 68.0 114.2
Attributable to:
- Ordinary shareholders 281.1 60.4 104.2
- Minority shareholders 11.8 7.6 10.0
Exceptional items:
Profit on sale of investments 204.1 - 0.6
Profit on sale of assets 0.4 4.1 0.4
Impairment of assets - - 0.1
Total exceptional items 204.5 4.1 1.1
Taxation (1.2) (1.6) (0.4)
Net exceptional items after tax and
minorities 203.3 2.5 0.7
Net earnings 281.1 60.4 104.2
Net earnings per share (cents) 43 9 20
Diluted earnings per share (cents) 40 9 20
Headline earnings 67.1 57.9 103.5
Headline earnings per share (cents) 10 9 20
Net earnings excluding gains and losses
on foreign exchange,
financial instruments, exceptional
items and discontinued operations 88.4 57.4 78.4
Net earnings per share excluding gains
and losses on foreign
exchange, financial instruments,
exceptional items and discontinued
operations (cents) 13 9 16
South African rand/United States dollar
conversion rate 6.76 7.10 7.38
South African rand/Australian dollar
conversion rate 6.03 6.02 5.66
Gold sold - managed ozs (000) 1,024 1,039 1,057
Gold price received $/oz 784 680 609
Total cash costs $/oz 467 431 351
United States Dollars Six months to
December December
2007 2006
Revenue 1,507.6 1,300.0
Operating costs, net 966.0 757.8
- Operating costs 957.2 772.1
- Gold inventory change 8.8 (14.3)
Operating profit 541.6 542.2
Amortisation and depreciation 221.3 191.9
Net operating profit 320.3 350.3
Net interest paid (27.0) (4.0)
(Loss)/gain on foreign exchange (2.5) 36.0
(Loss)/gain on financial instruments (25.8) (4.0)
Other (3.1) (11.3)
Exploration (23.6) (17.2)
Profit before tax and exceptional items 238.3 349.8
Exceptional gain 208.6 2.3
Profit before taxation 446.9 352.1
Mining and income taxation 102.0 126.5
- Normal taxation 73.3 67.0
- Deferred taxation 28.7 59.5
Net profit from continued operations 344.9 225.6
Income from discontinued operations 5.3 (4.4)
Profit on sale of Venezuelan assets 10.7 -
Net profit 360.9 221.2
Attributable to:
- Ordinary shareholders 341.5 202.3
- Minority shareholders 19.4 18.9
Exceptional items:
Profit on sale of investments 204.1 0.7
Profit on sale of assets 4.5 1.5
Impairment of assets - 0.1
Total exceptional items 208.6 2.3
Taxation (2.8) (0.8)
Net exceptional items after tax and minorities 205.8 1.5
Net earnings 341.5 202.3
Net earnings per share (cents) 52 40
Diluted earnings per share (cents) 49 38
Headline earnings 125.0 200.8
Headline earnings per share (cents) 19 40
Net earnings excluding gains and losses on foreign
exchange,
financial instruments, exceptional items and
discontinued operations 145.8 179.1
Net earnings per share excluding gains and losses on
foreign
exchange, financial instruments, exceptional items
and discontinued
operations (cents) 22 35
South African rand/United States dollar conversion
rate 6.93 7.24
South African rand/Australian dollar conversion rate 6.03 5.52
Gold sold - managed ozs
(00
0) 2,063 2,111
Gold price received $/oz 731 616
Total cash costs $/oz 449 350
Balance sheet
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand
December June
2007 2007
Property, plant and equipment 39,686.7 37,312.8
Goodwill 4,458.9 4,458.9
Non-current assets 656.7 627.7
Investments 4,195.3 2,272.4
Discontinued operations - 3,352.3
Current assets 4,768.1 5,877.0
- Other current assets 3,447.5 3,566.9
- Cash and deposits 1,320.6 2,310.1
Total assets 53,765.7 53,901.1
Shareholders` equity 37,884.6 37,106.3
Deferred taxation 4,835.2 4,651.4
Long-term loans 6,037.5 6,170.5
Environmental rehabilitation provisions 1,418.7 1,380.5
Post-retirement health care provisions 20.9 21.0
Current liabilities 3,568.8 4,571.4
- Other current liabilities 3,194.1 3,852.8
- Current portion of long-term loans 374.7 718.6
Total equity and liabilities 53,765.7 53,901.1
South African rand/US dollar conversion rate
South African rand/Australian dollar conversion rate
Condensed changes in equity
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
United States Dollars
December June
2007 2007
Property, plant and equipment 5,669.5 5,218.6
Goodwill 637.0 623.6
Non-current assets 93.8 87.8
Investments 599.3 317.8
Discontinued operations - 468.9
Current assets 681.2 822.0
- Other current assets 492.5 498.9
- Cash and deposits 188.7 323.1
Total assets 7,680.8 7,538.7
Shareholders` equity 5,412.1 5,189.7
Deferred taxation 690.7 650.5
Long-term loans 862.5 863.0
Environmental rehabilitation provisions 202.7 193.1
Post-retirement health care provisions 3.0 2.9
Current liabilities 509.8 639.5
- Other current liabilities 456.3 539.0
- Current portion of long-term loans 53.5 100.5
Total equity and liabilities 7,680.8 7,538.7
South African rand/US dollar conversion rate 7.00 7.15
South African rand/Australian dollar conversion rate 6.09 6.06
Condensed changes in equity
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand
December December
2007 2006
Balance at the beginning of the financial year 37,106.3 19,851.5
Issue of share capital 0.2 28.4
Increase in share premium 20.8 7,164.5
Mark to market valuation of listed investments (30.5) 156.2
Dividends paid (619.9) (545.4)
Increase in share-based payment reserve 50.6 38.1
Profit attributable to ordinary shareholders 2,366.6 1,464.6
Profit attributable to minority shareholders 134.6 136.8
Decrease in minority interests (457.6) (121.4)
Loss on transacting with minorities (74.0) -
Currency translation adjustment and other (158.4) (409.0)
Reserves released on sale of Venezuelan assets (454.1) -
Balance as at the end of December 37,884.6 27,764.3
Reconciliation of headline earnings with net earnings
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
United States Dollars
December December
2007 2006
Balance at the beginning of the financial year 5,189.7 2,671.8
Issue of share capital - 4.1
Increase in share premium 3.0 1,026.4
Mark to market valuation of listed investments (4.4) 22.4
Dividends paid (89.4) (78.1)
Increase in share-based payment reserve 7.3 5.5
Profit attributable to ordinary shareholders 341.5 202.3
Profit attributable to minority shareholders 19.4 18.9
Decrease in minority interests (66.0) (13.0)
Loss on transacting with minorities (10.7) -
Currency translation adjustment and other 87.2 117.4
Reserves released on sale of Venezuelan assets (65.5) -
Balance as at the end of December 5,412.1 3,977.7
Reconciliation of headline earnings with net earnings
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand
December September December
2007 2007 2006
Net earnings 1,938.0 428.6 766.8
Profit on sale of investments (1,414.7) - (4.7)
Loss on sale of assets (1.9) (29.3) (2.8)
Taxation effect of profit on
sale of assets 8.3 11.2 2.7
Profit on sale of Venezuelan assets (74.2) - -
Other after tax adjustments - - (0.3)
Headline earnings 455.5 410.5 761.7
Headline earnings per share - cents 70 63 147
Based on headline earnings as given
above divided by
652,412,191 for December 2007
(September 2007- 652,219,625
and December 2006 - 517,356,586) being
the weighted average
number of ordinary shares in issue.
United States Dollars
December September December
2007 2007 2006
Net earnings 281.1 60.4 104.2
Profit on sale of investments (204.1) - (0.6)
Loss on sale of assets (0.4) (4.1) (0.4)
Taxation effect of profit on
sale of assets 1.2 1.6 0.4
Profit on sale of Venezuelan assets (10.7) - -
Other after tax adjustments - - (0.1)
Headline earnings 67.1 57.9 103.5
Headline earnings per share - cents 10 9 20
Based on headline earnings as given
above divided by
652,412,191 for December 2007
(September 2007- 652,219,625
and December 2005 - 517,356,586) being
the weighted average
number of ordinary shares in issue.
Cash flow statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand Quarter
December September December
2007 2007 2006
Cash flows from operating activities 1,147.8 985.3 1,381.2
Profit before tax and exceptional
items 900.8 750.8 1,312.6
Exceptional items 1,416.6 29.3 7.8
Amortisation and depreciation 762.7 771.1 726.1
Change in working capital (570.6) (223.8) (320.9)
Taxation paid (129.7) (361.1) (85.6)
Other non-cash items (1,352.1) 12.7 (278.5)
Discontinued operations 120.1 6.3 19.7
Dividends paid - (619.9) -
Ordinary shareholders - (619.9) -
Minority shareholders in subsidiaries - - -
Cash flows from investing activities (222.2) (1,932.8) (10,135.8)
Capital expenditure - additions (2,475.5) (1,927.9) (1,338.0)
Capital expenditure - proceeds on
disposal 1.8 30.8 2.9
Sale/(purchase) of subsidiaries 1,042.1 - (8,676.8)
Purchase of investments (9.6) (2.4) (77.5)
Proceeds on the disposal of
investments 32.5 - 6.9
Environmental and post-retirement
health care payments (6.5) (4.9) (14.7)
Discontinued operations 1,193.0 (28.4) (38.6)
Cash flows from financing activities (1,068.5) 744.2 9,016.4
Loans received 727.4 908.6 9,057.9
Loans repaid (1,808.2) (173.0) -
Minority shareholders loans repaid - - (44.6)
Shares issued 12.3 8.6 3.1
Discontinued operations - - -
Net cash outflow (142.9) (823.2) 261.8
Translation adjustment (6.4) (17.0) (73.2)
Cash at beginning of period 1,469.9 2,310.1 1,223.9
Cash at end of period 1,320.6 1,469.9 1,412.5
South African Rand Six months to
December December
2007 2006
Cash flows from operating activities 2,133.1 2,990.5
Profit before tax and exceptional items 1,651.6 2,532.5
Exceptional items 1,445.9 16.5
Amortisation and depreciation 1,533.8 1,389.7
Change in working capital (794.4) (311.0)
Taxation paid (490.8) (400.4)
Other non-cash items (1,339.4) (269.7)
Discontinued operations 126.4 32.9
Dividends paid (619.9) (555.9)
Ordinary shareholders (619.9) (545.4)
Minority shareholders in subsidiaries - (10.5)
Cash flows from investing activities (2,155.0) (11,443.0)
Capital expenditure - additions (4,403.4) (2,510.0)
Capital expenditure - proceeds on disposal 32.6 14.0
Sale/(purchase) of subsidiaries 1,042.1 (8,676.8)
Purchase of investments (12.0) (198.9)
Proceeds on the disposal of investments 32.5 9.1
Environmental and post-retirement
health care payments (11.4) (23.7)
Discontinued operations 1,164.6 (56.7)
Cash flows from financing activities (324.3) 8,847.5
Loans received 1,636.0 9,057.9
Loans repaid (1,981.2) (155.6)
Minority shareholders loans repaid - (90.1)
Shares issued 20.9 35.3
Discontinued operations - -
Net cash outflow (966.1) (160.9)
Translation adjustment (23.4) (44.1)
Cash at beginning of period 2,310.1 1,617.5
Cash at end of period 1,320.6 1,412.5
United States Dollars Quarter
December September December
2007 2007 2006
Cash flows from operating activities 175.1 131.1 189.8
Profit before tax and exceptional items 132.5 105.8 176.6
Exceptional items 204.5 4.1 1.1
Amortisation and depreciation 112.7 108.6 99.1
Change in working capital (83.1) (31.5) (43.5)
Taxation paid (13.7) (58.6) (11.6)
Other non-cash items (195.1) 1.8 (37.7)
Discontinued operations 17.3 0.9 5.8
Dividends paid - (88.6) -
Ordinary shareholders - (88.6) -
Minority shareholders in subsidiaries - - -
Cash flows from investing activities (38.6) (272.2) (1,396.4)
Capital expenditure - additions (363.9) (271.5) (181.3)
Capital expenditure - proceeds on
disposal 0.4 4.3 0.4
Sale/(purchase) of subsidiaries 150.4 - (1,198.5)
Purchase of investments (1.4) (0.3) (10.5)
Proceeds on the disposal of investments 4.7 - 0.9
Environmental and post-retirement
health care payments (0.9) (0.7) (2.0)
Discontinued operations 172.1 (4.0) (5.4)
Cash flows from financing activities (151.6) 104.8 1,261.4
Loans received 108.1 128.0 1,265.7
Loans repaid (261.5) (24.4) 0.4
Minority shareholders loans repaid - - (5.1)
Shares issued 1.8 1.2 0.4
Discontinued operations - - -
Net cash outflow (15.1) (124.9) 54.8
Translation adjustment (6.2) 11.8 (13.4)
Cash at beginning of period 210.0 323.1 161.0
Cash at end of period 188.7 210.0 202.4
United States Dollars Six months to
December December
2007 2006
Cash flows from operating activities 306.2 416.5
Profit before tax and exceptional items 238.3 347.6
Exceptional items 208.6 2.3
Amortisation and depreciation 221.3 193.3
Change in working capital (114.6) (43.0)
Taxation paid (72.3) (51.7)
Other non-cash items (193.3) (37.3)
Discontinued operations 18.2 5.3
Dividends paid (88.6) (78.3)
Ordinary shareholders (88.6) (76.8)
Minority shareholders in subsidiaries - (1.5)
Cash flows from investing activities (310.8) (1,580.5)
Capital expenditure - additions (635.4) (346.7)
Capital expenditure - proceeds on disposal 4.7 1.9
Sale/(purchase) of subsidiaries 150.4 (1,198.5)
Purchase of investments (1.7) (27.5)
Proceeds on the disposal of investments 4.7 1.3
Environmental and post-retirement health care
payments (1.6) (3.3)
Discontinued operations 168.1 (7.7)
Cash flows from financing activities (46.8) 1,237.6
Loans received 236.1 1,265.7
Loans repaid (285.9) (21.5)
Minority shareholders loans repaid - (11.5)
Shares issued 3.0 4.9
Discontinued operations - -
Net cash outflow (140.0) (4.7)
Translation adjustment 5.6 (10.6)
Cash at beginning of period 323.1 217.7
Cash at end of period 188.7 202.4
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 December 2007
US Dollars / Rand forward purchases
As a result of the draw down under a bridge loan facility to settle the
close-out of the Western Areas gold derivative structure, US dollars/rand
forward cover was purchased during the March quarter for the amount of US$550.8
million for settlement on 6 August 2007. On 6 August 2007, this US dollars/rand
forward cover was extended to 6 November 2007.
On 6 November 2007 the forward cover was extended to 6 December 2007 at an
average rate of R6.6315, based on a spot of R6.6000. On 6 December 2007 a
partial repayment of US$60.8 million was made against the loan and subsequently
the balance of US$490 million forward cover was extended to 6 March 2008 at a
rate of R6.9118, based on a spot rate of R6.8000. For accounting purposes, this
forward cover has been designated as a hedging instrument. The forward cover
points have been accounted for as part of interest.
Year ended 30 June 2008
Forward purchases:
Amount (US dollars) - 000`s 490,000
Average rate - ZAR/US$ 6.9118
At the end of December 2007 the mark to market value of the US$490.0 million
forward cover was positive by R86.7 million (US$12.4 million). The quarter on
quarter mark to market movement was positive R68.5 million of which R11.7
million was offset against the R11.7 million foreign exchange loss on the
revaluation of the underlying loan being hedged. The balance of R56.8 million
represents the forward cover cost which has been included in interest paid in
the income statement.
On 27 July 2007 US dollars/ rand forward cover of US$40 million was purchased
to hedge future investments in Orogen, a 100% owned subsidiary, with maturity
on 30 October 2007. On 30 October 2007 the forward cover was extended to 30
November 2007 at a rate of R6.5399, based on a spot rate of R6.5091. On 30
November 2007 the forward cover was extended to 31 January 2008 at a rate of
R7.0743, based on a spot of R7.0000. For accounting purposes this forward cover
has been designated as a hedging instrument and the valuation thereof is
included in shareholder equity.
Year ended 30 June
2008
Forward purchases:
Amount (US dollars) - 000`s 40,000
Average rate - ZAR/US$ 7.0743
At the end of December 2007 the mark to market value of the US$40 million was
negative by R1.1 million (US$0.2 million).
On 4 October 2007 US dollars/ rand forward cover of US$50 million was purchased
to hedge future investments in Orogen, a 100% owned subsidiary.
The forward cover rate is R6.9949, based on a spot rate of R6.9474, with
maturity on 21 November 2007. On 21 November 2007 the forward cover was
extended to 22 January 2008 at a rate of R6.7900, based on a spot rate of
R6.7200. For accounting purposes this forward cover has been designated as a
hedging instrument and the valuation thereof is included in shareholder equity.
Year ended 30 June 2008
Forward purchases:
Amount (US dollars) - 000`s 50,000
Average rate - ZAR/US$ 6.7900
At the end of December 2007 the mark to market value of the US$50 million was
negative by R12.7 million (US$1.8 million).
Diesel Hedge
On 28 June 2007, 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. The mark to market value at the end of
September 2007 was positive by US$0.1 million. On 20 August 2007, Gold Fields
Ghana Holdings (BVI) Ltd purchased a further three month Asian style option in
respect of 15 million litres of diesel, starting 1 October 2007. The call
option resulted in a premium of US$0.4 million, paid upfront, at a strike rate
of US$0.5572 per litre. The mark to market value at the end of December 2007
was positive by US$0.6million.
Amended Mvela Subscription and Exchange Agreement Election
Gold Fields, Mvela Gold, Mvela Resources and GFIMSA entered into a Subscription
and Exchange Agreement on 17 November 2004 to provide that Mvela Resources may
acquire a minimum of 45,000,000 and a maximum of 55,000,000 Gold Fields shares
should it elect to exchange its equity interest in GFIMSA for Gold Fields`
shares. The mark to market valuation of this floor and cap derivative was a
negative of R135 million at the end of the quarter. (September quarter was R32
million positive).
Total cash costs
Gold Industry Standards Basis
Figures are in millions unless otherwise stated
South African Operations
Total Mine
Operations Total Driefontein Kloof
Operating costs(1)
December 2007 3,341.2 2,173.5 744.2 688.7
September 2007 3,291.9 2,114.0 723.5 660.6
Financial year to date 6,633.1 4,287.5 1,467.7 1,349.3
Gold-in-process and
inventory change*
December 2007 5.7 - - -
September 2007 (3.3) - - -
Financial year to date 2.4 - - -
Less:
Rehabilitation costs
December 2007 14.8 10.7 4.4 3.3
September 2007 14.5 10.5 4.4 3.3
Financial year to date 29.3 21.2 8.8 6.6
Production taxes
December 2007 10.4 10.4 4.2 2.7
September 2007 9.0 9.0 2.9 2.7
Financial year to date 19.4 19.4 7.1 5.4
General and admin
December 2007 144.3 95.7 36.5 31.9
September 2007 130.2 83.2 30.3 25.9
Financial year to date 274.5 178.9 66.8 57.8
Exploration costs
December 2007 9.4 - - -
September 2007 9.1 - - -
Financial year to date 18.5 - - -
Cash operating costs
December 2007 3,168.0 2,056.7 699.1 650.8
September 2007 3,125.8 2,011.3 685.9 628.7
Financial year to date 6,293.8 4,068.0 1,385.0 1,279.5
Plus:
Production taxes
December 2007 10.4 10.4 4.2 2.7
September 2007 9.0 9.0 2.9 2.7
Financial year to date 19.4 19.4 7.1 5.4
Royalties
December 2007 55.2 - - -
September 2007 46.2 - - -
Financial year to date 101.4 - - -
TOTAL CASH COSTS(2)
December 2007 3,233.6 2,067.1 703.3 653.5
September 2007 3,181.0 2,020.3 688.8 631.4
Financial year to date 6,414.6 4,087.4 1,392.1 1,284.9
Plus:
Amortisation*
December 2007 775.1 462.6 141.0 160.4
September 2007 749.4 436.5 144.9 159.1
Financial year to date 1,524.5 899.1 285.9 319.5
Rehabilitation
December 2007 14.8 10.7 4.4 3.3
September 2007 14.5 10.5 4.4 3.3
Financial year to date 29.3 21.2 8.8 6.6
TOTAL PRODUCTION
COSTS(3)
December 2007 4,023.5 2,540.4 848.7 817.2
September 2007 3,944.9 2,467.3 838.1 793.8
Financial year to date 7,968.4 5,007.7 1,686.8 1,611.0
Gold sold
- thousand ounces
December 2007 1,023.9 656.9 239.6 230.8
September 2007 1,038.7 689.2 260.4 235.3
Financial year to date 2,062.6 1,346.1 499.9 466.1
TOTAL CASH COSTS
- US$/oz
December 2007 467 465 434 419
September 2007 431 413 373 378
Financial year to date 449 438 402 398
TOTAL CASH COSTS
- R/kg
December 2007 101,532 101,170 94,390 91,029
September 2007 98,465 94,248 85,058 86,269
Financial year to date 99,988 97,626 89,530 88,626
TOTAL PRODUCTION
COSTS
- US$/oz
December 2007 581 572 524 524
September 2007 535 504 453 475
Financial year to date 557 537 487 499
South African Operations International
Operations
South
Beatrix Deep Total
Operating costs(1)
December 2007 420.2 320.4 1,167.7
September 2007 415.5 314.4 1,177.9
Financial year to date 835.7 634.8 2,345.6
Gold-in-process and
inventory change*
December 2007 - - 5.7
September 2007 - - (3.3)
Financial year to date - - 2.4
Less:
Rehabilitation costs
December 2007 2.3 0.7 4.1
September 2007 2.1 0.7 4.0
Financial year to date 4.4 1.4 8.1
Production taxes
December 2007 2.1 1.4 -
September 2007 1.9 1.5 -
Financial year to date 4.0 2.9 -
General and admin
December 2007 18.4 8.9 48.6
September 2007 19.0 8.0 47.0
Financial year to date 37.4 16.9 95.6
Exploration costs
December 2007 - - 9.4
September 2007 - - 9.1
Financial year to date - - 18.5
Cash operating costs
December 2007 397.4 309.4 1,111.3
September 2007 392.5 304.2 1,114.5
Financial year to date 789.9 613.9 2,225.8
Plus:
Production taxes
December 2007 2.1 1.4 -
September 2007 1.9 1.5 -
Financial year to date 4.0 2.9 -
Royalties
December 2007 - - 55.2
September 2007 - - 46.2
Financial year to date - - 101.4
TOTAL CASH COSTS(2)
December 2007 399.5 310.8 1,166.5
September 2007 394.4 305.7 1,160.7
Financial year to date 793.9 616.5 2,327.2
Plus:
Amortisation*
December 2007 76.0 85.2 312.5
September 2007 63.9 68.6 312.9
Financial year to date 139.9 153.8 625.4
Rehabilitation
December 2007 2.3 0.7 4.1
September 2007 2.1 0.7 4.0
Financial year to date 4.4 1.4 8.1
TOTAL PRODUCTION
COSTS(3)
December 2007 477.8 396.7 1,483.1
September 2007 460.4 375.0 1,477.6
Financial year to date 938.2 771.7 2,960.7
Gold sold
- thousand ounces
December 2007 118.9 67.6 367.0
September 2007 119.2 74.3 349.5
Financial year to date 238.1 142.0 716.5
TOTAL CASH COSTS
- US$/oz
December 2007 497 680 470
September 2007 466 579 468
Financial year to date 481 627 469
TOTAL CASH COSTS
- R/kg
December 2007 108,031 147,719 102,181
September 2007 106,393 132,223 106,780
Financial year to date 107,211 139,606 104,424
TOTAL PRODUCTION
COSTS
- US$/oz
December 2007 594 868 598
September 2007 544 711 595
Financial year to date 569 784 596
International Operations
Ghana Australia #
Tarkwa Damang St Ives Agnew
Operating costs(1)
December 2007 465.8 200.9 394.6 106.4
September 2007 454.2 171.8 402.5 149.4
Financial year to date 920.0 372.7 797.1 255.8
Gold-in-process and
inventory change*
December 2007 (9.4) (17.6) 0.3 32.4
September 2007 (2.1) (16.6) 8.1 7.3
Financial year to date (11.5) (34.2) 8.4 39.7
Less:
Rehabilitation costs
December 2007 1.1 - 2.4 0.6
September 2007 1.2 - 2.2 0.6
Financial year to date 2.3 - 4.6 1.2
Production taxes
December 2007 - - - -
September 2007 - - - -
Financial year to date - - - -
General and admin
December 2007 26.7 3.8 13.3 4.8
September 2007 22.6 4.3 14.6 5.5
Financial year to date 49.3 8.1 27.9 10.3
Exploration costs
December 2007 2.0 6.8 0.6
September 2007 - 2.8 5.6 0.7
Financial year to date 4.8 12.4 1.3
Cash operating costs
December 2007 428.6 177.5 372.4 132.8
September 2007 428.3 148.1 388.2 149.9
Financial year to date 856.9 325.6 760.6 282.7
Plus:
Production taxes
December 2007 - - - -
September 2007 - - - -
Financial year to date - - - -
Royalties
December 2007 26.1 7.4 15.1 6.6
September 2007 21.6 6.4 12.4 5.8
Financial year to date 47.7 13.8 27.5 12.4
TOTAL CASH COSTS(2)
December 2007 454.7 184.9 387.5 139.4
September 2007 449.9 154.5 400.6 155.7
Financial year to date 904.6 339.4 788.1 295.1
Plus:
Amortisation*
December 2007 72.7 20.3 219.5
September 2007 74.7 14.1 224.1
Financial year to date 147.4 34.4 443.6
Rehabilitation
December 2007 1.1 - 3.0
September 2007 1.2 - 2.8
Financial year to date 2.3 - 5.8
TOTAL PRODUCTION
COSTS(3)
December 2007 528.5 205.2 749.4
September 2007 525.8 168.6 783.2
Financial year to date 1,054.3 373.8 1,532.6
Gold sold
- thousand ounces
December 2007 162.7 45.2 110.0 49.2
September 2007 149.6 46.5 102.4 51.0
Financial year to date 312.3 91.7 212.4 100.1
TOTAL CASH COSTS
- US$/oz
December 2007 413 605 521 419
September 2007 423 468 551 430
Financial year to date 418 534 536 425
TOTAL CASH COSTS
- R/kg
December 2007 89,844 131,508 113,304 91,171
September 2007 96,670 106,920 125,777 98,172
Financial year to date 93,114 119,046 119,319 94,735
TOTAL PRODUCTION
COSTS
- US$/oz
December 2007 480 672 697
September 2007 495 511 719
Financial year to date 487 588 708
Discontinued
Operations ##
Venezuela
Choco 10
Operating costs(1)
December 2007 92.0
September 2007 99.3
Financial year to date 191.3
Gold-in-process and
inventory change*
December 2007 22.1
September 2007 (13.5)
Financial year to date 8.6
Less:
Rehabilitation costs
December 2007 -
September 2007 -
Financial year to date -
Production taxes
December 2007 -
September 2007 -
Financial year to date -
General and admin
December 2007 9.2
September 2007 20.8
Financial year to date 30.0
Exploration costs
December 2007 -
September 2007 -
Financial year to date -
Cash operating costs
December 2007 104.9
September 2007 65.0
Financial year to date 169.9
Plus:
Production taxes
December 2007 -
September 2007 -
Financial year to date -
Royalties
December 2007 3.4
September 2007 2.6
Financial year to date 6.0
TOTAL CASH COSTS(2)
December 2007 108.3
September 2007 67.6
Financial year to date 175.9
Plus:
Amortisation*
December 2007 5.6
September 2007 9.2
Financial year to date 14.8
Rehabilitation
December 2007 -
September 2007 -
Financial year to date -
TOTAL PRODUCTION
COSTS(3)
December 2007 113.9
September 2007 76.8
Financial year to date 190.7
Gold sold
- thousand ounces
December 2007 19.3
September 2007 13.9
Financial year to date 33.2
TOTAL CASH COSTS
- US$/oz
December 2007 830
September 2007 684
Financial year to date 764
TOTAL CASH COSTS
- R/kg
December 2007 180,500
September 2007 156,120
Financial year to date 170,281
TOTAL PRODUCTION
COSTS
- US$/oz
December 2007 873
September 2007 777
Financial year to date 828
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.
# 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.
## Discontinued operations are excluded from Total International and Total Mine
Operations. Average exchange rates are US$1 = R6.76 and US$1 = R7.10 for the
December 2007 and September 2007 quarters respectively.
Operating and financial results
South African Operations
South African Rand Total Mine
Operations Total Driefontein Kloof
Operating Results
Ore milled/treated (000 tons)
December 2007 12,630 3,767 1,478 1,008
September 2007 12,350 3,922 1,532 994
Financial year to date 24,980 7,689 3,010 2,002
Yield (grams per ton)
December 2007 2.5 5.4 5.0 7.1
September 2007 2.6 5.5 5.3 7.4
Financial year to date 2.6 5.4 5.2 7.2
Gold produced (kilograms)
December 2007 31,682 20,432 7,451 7,179
September 2007 32,472 21,436 8,098 7,319
Financial year to date 64,154 41,868 15,549 14,498
Gold sold (kilograms)
December 2007 31,848 20,432 7,451 7,179
September 2007 32,306 21,436 8,098 7,319
Financial year to date 64,154 41,868 15,549 14,498
Gold price received
(Rand per kilogram)
December 2007 170,488 169,846 170,031 169,508
September 2007 155,333 154,926 154,334 154,926
Financial year to date 162,857 162,207 161,856 162,147
Total cash costs (Rand
per kilogram)
December 2007 101,532 101,170 94,390 91,029
September 2007 98,465 94,248 85,058 86,269
Financial year to date 99,988 97,626 89,530 88,626
Total production costs
(Rand per kilogram)
December 2007 126,361 124,384 113,904 113,832
September 2007 122,110 115,101 103,495 108,457
Financial year to date 124,207 119,607 108,483 111,119
Operating costs (Rand
per ton)
December 2007 265 577 504 683
September 2007 267 539 472 665
Financial year to date 266 558 488 674
Financial Results (Rand
million)
Revenue
December 2007 5,429.7 3,470.3 1,266.9 1,216.9
September 2007 5,018.2 3,321.0 1,249.8 1,133.9
Financial year to date 10,447.9 6,791.3 2,516.7 2,350.8
Operating costs, net
December 2007 3,392.4 2,173.5 744.2 688.7
September 2007 3,301.9 2,114.0 723.5 660.6
Financial year to date 6,694.3 4,287.5 1,467.7 1,349.3
- Operating costs
December 2007 3,341.2 2,173.5 744.2 688.7
September 2007 3,291.9 2,114.0 723.5 660.6
Financial year to date 6,633.1 4,287.5 1,467.7 1,349.3
- Gold inventory change
December 2007 51.2 - - -
September 2007 10.0 - - -
Financial year to date 61.2 - - -
Operating profit
December 2007 2,037.3 1,296.8 522.7 528.2
September 2007 1,716.3 1,207.0 526.3 473.3
Financial year to date 3,753.6 2,503.8 1,049.0 1,001.5
Amortisation of mining
assets
December 2007 729.6 462.6 141.0 160.4
September 2007 736.1 436.5 144.9 159.1
Financial year to date 1,465.7 899.1 285.9 319.5
Net operating profit
December 2007 1,307.7 834.2 381.7 367.8
September 2007 980.2 770.5 381.4 314.2
Financial year to date 2,287.9 1,604.7 763.1 682.0
Other income/(expense)
December 2007 1.0 (35.9) (17.5) (9.6)
September 2007 (28.1) (53.3) (19.6) (11.5)
Financial year to date (27.1) (89.2) (37.1) (21.1)
Profit before taxation
December 2007 1,308.7 798.3 364.2 358.2
September 2007 952.1 717.2 361.8 302.7
Financial year to date 2,260.8 1,515.5 726.0 660.9
Mining and income
taxation
December 2007 439.2 281.2 127.1 126.1
September 2007 335.5 265.1 139.4 104.0
Financial year to date 774.7 546.3 266.5 230.1
- Normal taxation
December 2007 259.7 174.7 87.1 87.3
September 2007 218.9 157.5 97.6 59.6
Financial year to date 478.6 332.2 184.7 146.9
- Deferred taxation
December 2007 179.5 106.5 40.0 38.8
September 2007 116.6 107.6 41.8 44.4
Financial year to date 296.1 214.1 81.8 83.2
Profit before
exceptional items
December 2007 869.5 517.1 237.1 232.1
September 2007 616.6 452.1 222.4 198.7
Financial year to date 1,486.1 969.2 459.5 430.8
Exceptional items
December 2007 1.9 1.9 - 0.5
September 2007 29.3 29.1 21.7 0.4
Financial year to date 31.2 31.0 21.7 0.9
Net profit
December 2007 871.4 519.0 237.1 232.6
September 2007 645.9 481.2 244.1 199.1
Financial year to date 1,517.3 1,000.2 481.2 431.7
Net profit excluding
gains and losses on
foreign exchange,
financial instruments
and
exceptional items
December 2007 858.6 517.9 237.1 232.3
September 2007 636.8 469.9 230.6 198.9
Financial year to date 1,495.4 987.8 467.7 431.2
Capital expenditure
December 2007 1,435.4 838.5 267.3 225.8
September 2007 1,287.9 739.8 219.3 217.5
Financial year to date 2,723.3 1,578.3 486.6 443.3
Planned for next six
months to June 2008 3,293.5 1,826.0 532.1 466.0
South African Operations
South African Rand Beatrix South Deep
Operating Results
Ore milled/treated (000 tons)
December 2007 868 413
September 2007 913 483
Financial year to date 1,781 896
Yield (grams per ton)
December 2007 4.3 5.1
September 2007 4.1 4.8
Financial year to date 4.2 4.9
Gold produced (kilograms)
December 2007 3,698 2,104
September 2007 3,707 2,312
Financial year to date 7,405 4,416
Gold sold (kilograms)
December 2007 3,698 2,104
September 2007 3,707 2,312
Financial year to date 7,405 4,416
Gold price received (Rand per kilogram)
December 2007 170,254 169,629
September 2007 155,975 155,320
Financial year to date 163,106 162,138
Total cash costs (Rand per kilogram)
December 2007 108,031 147,719
September 2007 106,393 132,223
Financial year to date 107,211 139,606
Total production costs (Rand per kilogram)
December 2007 129,205 188,546
September 2007 124,197 162,197
Financial year to date 126,698 174,751
Operating costs (Rand per ton)
December 2007 484 776
September 2007 455 651
Financial year to date 469 708
Financial Results (Rand million)
Revenue
December 2007 629.6 356.9
September 2007 578.2 359.1
Financial year to date 1,207.8 716.0
Operating costs, net
December 2007 420.2 320.4
September 2007 415.5 314.4
Financial year to date 835.7 634.8
- Operating costs
December 2007 420.2 320.4
September 2007 415.5 314.4
Financial year to date 835.7 634.8
- Gold inventory change
December 2007 - -
September 2007 - -
Financial year to date - -
Operating profit
December 2007 209.4 36.5
September 2007 162.7 44.7
Financial year to date 372.1 81.2
Amortisation of mining assets
December 2007 76.0 85.2
September 2007 63.9 68.6
Financial year to date 139.9 153.8
Net operating profit
December 2007 133.4 (48.7)
September 2007 98.8 (23.9)
Financial year to date 232.2 (72.6)
Other income/(expense)
December 2007 (7.7) (1.1)
September 2007 (11.0) (11.2)
Financial year to date (18.7) (12.3)
Profit before taxation
December 2007 125.7 (49.8)
September 2007 87.8 (35.1)
Financial year to date 213.5 (84.9)
Mining and income taxation
December 2007 47.6 (19.6)
September 2007 33.1 (11.4)
Financial year to date 80.7 (31.0)
- Normal taxation
December 2007 0.3 -
September 2007 0.3 -
Financial year to date 0.6 -
- Deferred taxation
December 2007 47.3 (19.6)
September 2007 32.8 (11.4)
Financial year to date 80.1 (31.0)
Profit before exceptional items
December 2007 78.1 (30.2)
September 2007 54.7 (23.7)
Financial year to date 132.8 (53.9)
Exceptional items
December 2007 0.5 0.9
September 2007 0.3 6.7
Financial year to date 0.8 7.6
Net profit
December 2007 78.6 (29.3)
September 2007 55.0 (17.0)
Financial year to date 133.6 (46.3)
Net profit excluding gains and losses on
foreign exchange, financial instruments and
exceptional items
December 2007 78.3 (29.3)
September 2007 54.8 (14.4)
Financial year to date 133.1 (44.2)
Capital expenditure
December 2007 141.7 203.7
September 2007 133.8 169.2
Financial year to date 275.5 372.9
Planned for next six months to June 2008 305.1 522.8
Operating and financial results
International Operations
Ghana
South African Rand Total Tarkwa Damang
Operating Results
Ore milled/treated (000 tons)
December 2007 8,863 5,588 1,103
September 2007 8,428 5,213 1,124
Financial year to date 17,291 10,801 2,227
Yield (grams per ton)
December 2007 1.3 0.9 1.2
September 2007 1.3 0.9 1.3
Financial year to date 1.3 0.9 1.3
Gold produced (kilograms)
December 2007 11,250 4,925 1,376
September 2007 11,036 4,790 1,475
Financial year to date 22,286 9,715 2,851
Gold sold (kilograms)
December 2007 11,416 5,061 1,406
September 2007 10,870 4,654 1,445
Financial year to date 22,286 9,715 2,851
Gold price received (Rand per kilogram)
December 2007 171,636 171,369 171,906
September 2007 156,136 155,028 154,948
Financial year to date 164,076 163,541 163,311
Total cash costs (Rand per kilogram)
December 2007 102,181 89,844 131,508
September 2007 106,780 96,670 106,920
Financial year to date 104,424 93,114 119,046
Total production costs (Rand per kilogram)
December 2007 129,914 104,426 145,946
September 2007 135,934 112,978 116,678
Financial year to date 132,850 108,523 131,112
Operating costs (Rand per ton)
December 2007 132 83 182
September 2007 140 87 153
Financial year to date 136 85 167
Financial Results (Rand million)
Revenue
December 2007 1,959.4 867.3 241.7
September 2007 1,697.2 721.5 223.9
Financial year to date 3,656.6 1,588.8 465.6
Operating costs, net
December 2007 1,218.9 453.3 183.4
September 2007 1,187.9 451.3 155.2
Financial year to date 2,406.8 904.6 338.6
- Operating costs
December 2007 1,167.7 465.8 200.9
September 2007 1,177.9 454.2 171.8
Financial year to date 2,345.6 920.0 372.7
- Gold inventory change
December 2007 51.2 (12.5) (17.5)
September 2007 10.0 (2.9) (16.6)
Financial year to date 61.2 (15.4) (34.1)
Operating profit
December 2007 740.5 414.0 58.3
September 2007 509.3 270.2 68.7
Financial year to date 1,249.8 684.2 127.0
Amortisation of mining assets
December 2007 267.0 75.8 20.2
September 2007 299.6 75.5 14.1
Financial year to date 566.6 151.3 34.3
Net operating profit
December 2007 473.5 338.2 38.1
September 2007 209.7 194.7 54.6
Financial year to date 683.2 532.9 92.7
Other income/(expense)
December 2007 36.9 10.0 (0.4)
September 2007 25.2 1.0 0.2
Financial year to date 62.1 11.0 (0.2)
Profit before taxation
December 2007 510.4 348.2 37.7
September 2007 234.9 195.7 54.8
Financial year to date 745.3 543.9 92.5
Mining and income taxation
December 2007 158.0 102.7 14.9
September 2007 70.4 46.0 16.3
Financial year to date 228.4 148.7 31.2
- Normal taxation
December 2007 85.0 56.2 7.2
September 2007 61.4 36.5 6.7
Financial year to date 146.4 92.7 13.9
- Deferred taxation
December 2007 73.0 46.5 7.7
September 2007 9.0 9.5 9.6
Financial year to date 82.0 56.0 17.3
Profit before exceptional items
December 2007 352.4 245.5 22.8
September 2007 164.5 149.7 38.5
Financial year to date 516.9 395.2 61.3
Exceptional items
December 2007 - - -
September 2007 0.2 - -
Financial year to date 0.2 - -
Net profit
December 2007 352.4 245.5 22.8
September 2007 164.7 149.7 38.5
Financial year to date 517.1 395.2 61.3
Net profit excluding gains and losses on
foreign exchange, financial instruments and
exceptional items
December 2007 340.7 234.6 22.3
September 2007 166.9 149.0 38.2
Financial year to date 507.6 383.6 60.5
Capital expenditure
December 2007 596.9 314.3 51.4
September 2007 548.1 306.7 52.1
Financial year to date 1,145.0 621.0 103.5
Planned for next six months to June 2008 1,467.5 873.7 98.3
Discontinued
International Operations Operations ##
Australia # Venezuela
South African Rand St Ives Agnew Choco 10
Operating Results
Ore milled/treated (000 tons)
December 2007 1,859 313 360
September 2007 1,757 334 401
Financial year to date 3,616 647 761
Yield (grams per ton)
December 2007 1.8 4.9 1.6
September 2007 1.8 4.7 1.2
Financial year to date 1.8 4.8 1.4
Gold produced (kilograms)
December 2007 3,420 1,529 563
September 2007 3,185 1,586 489
Financial year to date 6,605 3,115 1,052
Gold sold (kilograms)
December 2007 3,420 1,529 600
September 2007 3,185 1,586 433
Financial year to date 6,605 3,115 1,033
Gold price received (Rand per kilogram)
December 2007 171,404 172,793 331,500
September 2007 156,609 159,521 232,564
Financial year to date 164,269 166,035 290,029
Total cash costs (Rand per kilogram)
December 2007 113,304 91,171 180,500
September 2007 125,777 98,172 156,120
Financial year to date 119,319 94,735 170,281
Total production costs (Rand per kilogram)
December 2007 151,425 189,833
September 2007 164,158 177,367
Financial year to date 157,675 184,608
Operating costs (Rand per ton)
December 2007 212 340 256
September 2007 229 447 248
Financial year to date 220 395 251
Financial Results (Rand million)
Revenue
December 2007 586.2 264.2 198.9
September 2007 498.8 253.0 100.7
Financial year to date 1,085.0 517.2 299.6
Operating costs, net
December 2007 393.8 188.4 114.1
September 2007 413.2 168.2 85.8
Financial year to date 807.0 356.6 199.9
- Operating costs
December 2007 394.6 106.4 92.0
September 2007 402.5 149.4 99.3
Financial year to date 797.1 255.8 191.3
- Gold inventory change
December 2007 (0.8) 82.0 22.1
September 2007 10.7 18.8 (13.5)
Financial year to date 9.9 100.8 8.6
Operating profit
December 2007 192.4 75.8 84.8
September 2007 85.6 84.8 14.9
Financial year to date 278.0 160.6 99.7
Amortisation of mining assets
December 2007 171.0 5.6
September 2007 210.0 9.2
Financial year to date 381.0 14.8
Net operating profit
December 2007 97.2 79.2
September 2007 (39.6) 5.7
Financial year to date 57.6 84.9
Other income/(expense)
December 2007 27.3 (27.8)
September 2007 24.0 (1.8)
Financial year to date 51.3 (29.6)
Profit before taxation
December 2007 124.5 51.4
September 2007 (15.6) 3.9
Financial year to date 108.9 55.3
Mining and income taxation
December 2007 40.4 3.2
September 2007 8.1 3.6
Financial year to date 48.5 6.8
- Normal taxation
December 2007 21.6 3.2
September 2007 18.2 2.7
Financial year to date 39.8 5.9
- Deferred taxation
December 2007 18.8 -
September 2007 (10.1) 0.9
Financial year to date 8.7 0.9
Profit before exceptional items
December 2007 84.1 48.2
September 2007 (23.7) 0.3
Financial year to date 60.4 48.5
Exceptional items
December 2007 - -
September 2007 0.2 -
Financial year to date 0.2 -
Net profit
December 2007 84.1 48.2
September 2007 (23.5) 0.3
Financial year to date 60.6 48.5
Net profit excluding gains and losses on
foreign exchange, financial instruments and
exceptional items
December 2007 83.8 43.6
September 2007 (20.3) 1.1
Financial year to date 63.5 47.4
Capital expenditure
December 2007 175.1 56.1 30.2
September 2007 151.5 37.8 39.8
Financial year to date 326.6 93.9 70.0
Planned for next six months to June 2008 342.0 153.5 -
# 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.
## Discontinued operations are excluded from Total International Operations.
Operating and financial results
South African Operations
Total Mine
United States Dollars Operations Total Driefontein Kloof
Operating Results
Ore milled/treated (000
tons)
December 2007 12,630 3,767 1,478 1,008
September 2007 12,350 3,922 1,532 994
Financial year to date 24,980 7,689 3,010 2,002
Yield (ounces per ton)
December 2007 0.081 0.174 0.162 0.229
September 2007 0.085 0.176 0.170 0.237
Financial year to date 0.083 0.175 0.166 0.233
Gold produced (000 ounces)
December 2007 1,018.6 656.9 239.6 230.8
September 2007 1,044.0 689.2 260.4 235.3
Financial year to date 2,062.6 1,346.1 499.9 466.1
Gold sold (000 ounces)
December 2007 1,023.9 656.9 239.6 230.8
September 2007 1,038.7 689.2 260.4 235.3
Financial year to date 2,062.6 1,346.1 499.9 466.1
Gold price received
(dollars per ounce)
December 2007 784 781 782 780
September 2007 680 679 676 679
Financial year to date 731 728 726 728
Total cash costs (dollars
per ounce)
December 2007 467 465 434 419
September 2007 431 413 373 378
Financial year to date 449 438 402 398
Total production costs
(dollars per ounce)
December 2007 581 572 524 524
September 2007 535 504 453 475
Financial year to date 557 537 487 499
Operating costs (dollars
per ton)
December 2007 39 85 74 101
September 2007 38 76 67 94
Financial year to date 38 80 70 97
Financial Results ($
million)
Revenue
December 2007 800.8 512.3 187.2 179.5
September 2007 706.8 467.7 176.0 159.7
Financial year to date 1,507.6 980.0 363.2 339.2
Operating costs, net
December 2007 500.9 321.0 109.9 101.7
September 2007 465.1 297.7 101.9 93.0
Financial year to date 966.0 618.7 211.8 194.7
- Operating costs
December 2007 493.5 321.0 109.9 101.7
September 2007 463.7 297.7 101.9 93.0
Financial year to date 957.2 618.7 211.8 194.7
- Gold inventory change
December 2007 7.4 - - -
September 2007 1.4 - - -
Financial year to date 8.8 - - -
Operating profit
December 2007 299.9 191.3 77.3 77.7
September 2007 241.7 170.0 74.1 66.7
Financial year to date 541.6 361.3 151.4 144.5
Amortisation of mining
assets
December 2007 107.8 68.2 20.9 23.7
September 2007 103.7 61.5 20.4 22.4
Financial year to date 211.5 129.7 41.3 46.1
Net operating profit
December 2007 192.2 123.1 56.4 54.0
September 2007 137.9 108.5 53.7 44.3
Financial year to date 330.2 231.6 110.1 98.4
Other income/(expenses)
December 2007 0.0 (5.4) (2.6) (1.4)
September 2007 (4.0) (7.5) (2.8) (1.6)
Financial year to date (4.0) (12.9) (5.4) (3.0)
Profit before taxation
December 2007 192.2 117.7 53.7 52.7
September 2007 133.9 101.0 51.0 42.6
Financial year to date 326.1 218.7 104.7 95.4
Mining and income taxation
December 2007 64.5 41.4 18.9 18.6
September 2007 47.3 37.3 19.6 14.6
Financial year to date 111.8 78.8 38.5 33.2
- Normal taxation
December 2007 38.3 25.7 13.0 12.8
September 2007 30.8 22.2 13.7 8.4
Financial year to date 69.1 47.9 26.7 21.2
- Deferred taxation
December 2007 26.2 15.7 5.9 5.7
September 2007 16.5 15.2 5.9 6.3
Financial year to date 42.7 30.9 11.8 12.0
Profit before exceptional
items
December 2007 127.7 76.1 35.0 34.1
September 2007 86.7 63.7 31.2 28.0
Financial year to date 214.4 139.7 66.2 62.2
Exceptional items
December 2007 0.4 0.4 0.0 0.0
September 2007 4.1 4.1 3.1 0.1
Financial year to date 4.5 4.5 3.1 0.1
Net profit
December 2007 128.1 76.5 35.0 34.1
September 2007 90.8 67.8 34.4 28.1
Financial year to date 218.9 144.2 69.3 62.3
Net profit excluding gains
and losses on
foreign exchange,
financial instruments and
exceptional items
December 2007 126.1 76.3 35.0 34.2
September 2007 89.7 66.2 32.5 28.0
Financial year to date 215.8 142.5 67.5 62.2
Capital expenditure
December 2007 211.8 123.6 39.3 33.4
September 2007 181.2 104.2 30.9 30.6
Financial year to date 393.0 227.7 70.2 64.0
Planned for next six
months to June 2008 470.5 260.9 76.0 66.6
South African Operations
United States Dollars Beatrix South Deep
Operating Results
Ore milled/treated (000 tons)
December 2007 868 413
September 2007 913 483
Financial year to date 1,781 896
Yield (ounces per ton)
December 2007 0.137 0.164
September 2007 0.131 0.154
Financial year to date 0.134 0.158
Gold produced (000 ounces)
December 2007 118.9 67.6
September 2007 119.2 74.3
Financial year to date 238.1 142.0
Gold sold (000 ounces)
December 2007 118.9 67.6
September 2007 119.2 74.3
Financial year to date 238.1 142.0
Gold price received (dollars per ounce)
December 2007 783 780
September 2007 683 680
Financial year to date 732 728
Total cash costs (dollars per ounce)
December 2007 497 680
September 2007 466 579
Financial year to date 481 627
Total production costs (dollars per ounce)
December 2007 594 868
September 2007 544 711
Financial year to date 569 784
Operating costs (dollars per ton)
December 2007 72 115
September 2007 64 92
Financial year to date 68 102
Financial Results ($ million)
Revenue
December 2007 92.9 52.7
September 2007 81.4 50.6
Financial year to date 174.3 103.3
Operating costs, net
December 2007 62.1 47.3
September 2007 58.5 44.3
Financial year to date 120.3 91.6
- Operating costs
December 2007 62.1 47.3
September 2007 58.5 44.3
Financial year to date 120.6 91.6
- Gold inventory change
December 2007 - -
September 2007 - -
Financial year to date - -
Operating profit
December 2007 30.8 5.4
September 2007 22.9 6.3
Financial year to date 53.7 11.7
Amortisation of mining assets
December 2007 11.2 12.5
September 2007 9.0 9.7
Financial year to date 20.2 22.2
Net operating profit
December 2007 19.6 (7.1)
September 2007 13.9 (3.4)
Financial year to date 33.5 (10.5)
Other income/(expenses)
December 2007 (1.2) (0.2)
September 2007 (1.5) (1.6)
Financial year to date (2.7) (1.8)
Profit before taxation
December 2007 18.4 (7.3)
September 2007 12.4 (4.9)
Financial year to date 30.8 (12.3)
Mining and income taxation
December 2007 6.9 (2.9)
September 2007 4.7 (1.6)
Financial year to date 11.6 (4.5)
- Normal taxation
December 2007 - -
September 2007 0.1 -
Financial year to date 0.1 -
- Deferred taxation
December 2007 7.0 (2.9)
September 2007 4.6 (1.6)
Financial year to date 11.6 (4.5)
Profit before exceptional items
December 2007 11.4 (4.3)
September 2007 7.8 (3.3)
Financial year to date 19.2 (7.8)
Exceptional items
December 2007 0.1 0.2
September 2007 - 0.9
Financial year to date 0.1 1.1
Net profit
December 2007 11.5 (4.1)
September 2007 7.8 (2.4)
Financial year to date 19.3 (6.7)
Net profit excluding gains and losses on
foreign exchange, financial instruments and
exceptional items
December 2007 11.5 (4.4)
September 2007 7.7 (2.0)
Financial year to date 19.2 (6.4)
Capital expenditure
December 2007 21.0 30.0
September 2007 18.8 23.8
Financial year to date 39.8 53.8
Planned for next six months to June 2008 43.6 74.7
Average exchange rates were US$1 = R6.76 and US$1 = R7.10 for the December 2007
and September 2007 quarters respectively. The Australian dollar exchange rates
were A$1 = R6.03 and A$1 = R6.02 for the December 2007 and September 2007
quarters respectively. # As a significant portion of the acquisition price was
allocated to tenements of St Ives and Agnew on endowment ounces and also as
these two Australian operations are entitled to transfer and then off-set tax
losses from one company to another, it is not meaningful to split the income
statement below operating profit. Figures may not add as they are rounded
independently. ## Discontinued operations are excluded from Total International
and Total Mine Operations.
Operating and financial results
International Operations
United States Dollars
Ghana
Total Tarkwa Damang
Operating Results
Ore milled/treated (000 tons)
December 2007 8.863 5,588 1,103
September 2007 8,428 5,213 1,124
Financial year to date 17,291 10,801 2,227
Yield (ounces per ton)
December 2007 0.041 0.028 0.040
September 2007 0.042 0.030 0.042
Financial year to date 0.041 0.029 0.041
Gold produced(000 ounces)
December 2007 361.7 158.3 44.2
September 2007 354.8 154.0 47.4
Financial year to date 716.5 312.3 91.7
Gold sold (000 ounces)
December 2007 367.0 162.7 45.2
September 2007 349.5 149.6 46.5
Financial year to date 716.5 312.3 91.7
Gold price received
(dollars per ounce)
December 2007 790 788 791
September 2007 684 679 679
Financial year to date 736 734 733
Total cash costs
(dollars per ounce)
December 2007 470 413 605
September 2007 468 423 468
Financial year to date 469 418 534
Total production costs
(dollars per ounce)
December 2007 598 480 672
September 2007 595 495 511
Financial year to date 596 487 588
Operating costs
(dollars per ton)
December 2007 19 12 27
September 2007 20 12 22
Financial year to date 20 12 24
Financial Results ($ million)
Revenue
December 2007 288.7 127.7 35.7
September 2007 239.0 101.6 31.5
Financial year to date 527.7 229.3 67.2
Operating costs, net
December 2007 180.1 67.0 27.0
September 2007 167.3 63.5 21.9
Financial year to date 347.4 130.5 48.9
- Operating costs
December 2007 172.6 68.8 29.6
September 2007 165.9 64.0 24.2
Financial year to date 338.5 132.8 53.8
- Gold inventory change
December 2007 7.5 (1.8) (2.6)
September 2007 1.4 (0.4) (2.3)
Financial year to date 8.9 (2.2) (4.9)
Operating profit
December 2007 108.5 60.6 8.7
September 2007 71.9 38.1 9.7
Financial year to date 180.4 98.7 18.3
Amortisation of mining assets
December 2007 39.6 11.2 2.9
September 2007 42.2 10.6 2.0
Financial year to date 81.8 21.8 4.9
Net operating profit
December 2007 69.1 49.5 5.7
September 2007 29.4 27.4 7.7
Financial year to date 98.6 76.9 13.4
Other income/(expenses)
December 2007 5.4 1.5 (0.1)
September 2007 3.5 0.1 -
Financial year to date 8.9 1.6 (0.1)
Profit before taxation
December 2007 74.4 51.0 5.6
September 2007 33.1 27.6 7.7
Financial year to date 107.5 78.5 13.3
Mining and income taxation
December 2007 23.1 15.1 2.2
September 2007 9.9 6.5 2.3
Financial year to date 33.0 21.5 4.5
- Normal taxation
December 2007 12.5 8.3 1.1
September 2007 8.6 5.1 0.9
Financial year to date 21.1 13.4 2.0
- Deferred taxation
December 2007 10.5 6.8 1.1
September 2007 1.3 1.3 1.4
Financial year to date 11.8 8.1 2.5
Profit before exceptional items
December 2007 51.3 35.9 3.4
September 2007 23.1 21.1 5.4
Financial year to date 74.6 57.0 8.8
Exceptional items
December 2007 - - -
September 2007 - - -
Financial year to date - - -
Net profit
December 2007 51.3 35.9 3.4
September 2007 23.1 21.1 5.4
Financial year to date 74.6 57.0 8.8
Net profit excluding gains and losses
on foreign exchange, financial
instruments and exceptional items
December 2007 49.7 34.4 3.3
September 2007 23.5 21.0 5.4
Financial year to date 73.2 55.4 8.7
Capital expenditure
December 2007 88.1 46.4 7.6
September 2007 77.1 43.2 7.3
Financial year to date 165.2 89.6 14.9
Planned for next six months to June 2008 209.6 124.8 14.0
International Australian
Operations Dollars
Australia # Australia #
United States Dollars St Ives Agnew St Ives Agnew
Operating Results
Ore milled/treated (000 tons)
December 2007 1,859 313 1,859 313
September 2007 1,757 334 1,757 334
Financial year to date 3,616 647 3,616 647
Yield (ounces per ton)
December 2007 0.059 0.157 0.059 0.157
September 2007 0.058 0.153 0.058 0.153
Financial year to date 0.059 0.155 0.059 0.155
Gold produced(000 ounces)
December 2007 110.0 49.2 110.0 49.2
September 2007 102.4 51.0 102.4 51.0
Financial year to date 212.4 100.1 212.4 100.1
Gold sold (000 ounces)
December 2007 110.0 49.2 110.0 49.2
September 2007 102.4 51.0 102.4 51.0
Financial year to date 212.4 100.1 212.4 100.1
Gold price received
(dollars per ounce)
December 2007 789 795 884 891
September 2007 686 699 809 824
Financial year to date 737 745 847 856
Total cash costs
(dollars per ounce)
December 2007 521 419 584 470
September 2007 551 430 650 507
Financial year to date 536 425 615 489
Total production costs
(dollars per ounce)
December 2007 697 781
September 2007 719 848
Financial year to date 708 813
Operating costs
(dollars per ton)
December 2007 31 50 35 56
September 2007 32 63 38 74
Financial year to date 32 57 37 66
Financial Results ($ million)
Revenue
December 2007 86.3 39.0 97.1 43.8
September 2007 70.3 35.6 82.9 42.0
Financial year to date 156.6 74.6 180.0 85.8
Operating costs, net
December 2007 58.4 27.8 65.1 31.2
September 2007 58.2 23.7 68.6 27.9
Financial year to date 116.6 51.5 133.8 59.1
- Operating costs
December 2007 58.4 15.9 65.3 17.6
September 2007 56.7 21.0 66.9 24.8
Financial year to date 115.1 36.9 132.2 42.4
- Gold inventory change
December 2007 - 1 1 .9 (0.1) 13.6
September 2007 1.5 2.6 1.8 3.1
Financial year to date 1.5 14.5 1.7 16.7
Operating profit
December 2007 27.9 11.2 31.9 12.5
September 2007 12.1 11.9 14.2 14.1
Financial year to date 40.1 23.2 46.1 26.6
Amortisation of mining assets
December 2007 25.4 28.3
September 2007 29.6 34.9
Financial year to date 55.0 63.2
Net operating profit
December 2007 13.8 16.2
September 2007 (5.7) (6.6)
Financial year to date 8.3 9.6
Other income/(expenses)
December 2007 4.0 4.5
September 2007 3.4 4.0
Financial year to date 7.4 8.5
Profit before taxation
December 2007 17.8 20.7
September 2007 (2.3) (2.6)
Financial year to date 15.7 18.1
Mining and income taxation
December 2007 5.8 6.7
September 2007 1.1 1.3
Financial year to date 7.0 8.0
- Normal taxation
December 2007 3.1 3.6
September 2007 2.6 3.0
Financial year to date 5.7 6.6
- Deferred taxation
December 2007 2.7 3.1
September 2007 (1.4) (1.7)
Financial year to date 1.3 1.4
Profit before exceptional items
December 2007 12.0 13.9
September 2007 (3.4) (3.9)
Financial year to date 8.7 10.0
Exceptional items
December 2007 - -
September 2007 - -
Financial year to date - -
Net profit
December 2007 12.0 13.9
September 2007 (3.4) (3.9)
Financial year to date 8.7 10.0
Net profit excluding gains and losses
on foreign exchange, financial
instruments and exceptional items
December 2007 12.1 13.9
September 2007 (2.9) (3.4)
Financial year to date 9.2 10.5
Capital expenditure
December 2007 25.8 8.2 29.0 9.3
September 2007 21.3 5.3 25.2 6.3
Financial year to date 47.1 13.5 54.2 15.6
Planned for next six months to June 2008 48.9 21.9 56.2 25.2
Discontinued
operations
Venezuela ##
United States Dollars Choco 10
Operating Results
Ore milled/treated (000 tons)
December 2007 360
September 2007 401
Financial year to date 761
Yield (ounces per ton)
December 2007 0.050
September 2007 0.039
Financial year to date 0.044
Gold produced(000 ounces)
December 2007 18.1
September 2007 15.7
Financial year to date 33.8
Gold sold (000 ounces)
December 2007 19.3
September 2007 13.9
Financial year to date 33.2
Gold price received
(dollars per ounce)
December 2007 1,525
September 2007 1,019
Financial year to date 1,302
Total cash costs
(dollars per ounce)
December 2007 830
September 2007 684
Financial year to date 764
Total production costs
(dollars per ounce)
December 2007 873
September 2007 777
Financial year to date 828
Operating costs
(dollars per ton)
December 2007 38
September 2007 35
Financial year to date 36
Financial Results ($ million)
Revenue
December 2007 29.0
September 2007 14.2
Financial year to date 43.2
Operating costs, net
December 2007 16.7
September 2007 12.1
Financial year to date 28.8
- Operating costs
December 2007 13.6
September 2007 14.0
Financial year to date 27.6
- Gold inventory change
December 2007 3.1
September 2007 (1.9)
Financial year to date 1.2
Operating profit
December 2007 12.3
September 2007 2.1
Financial year to date 14.4
Amortisation of mining assets
December 2007 0.8
September 2007 1.3
Financial year to date 2.1
Net operating profit
December 2007 11.5
September 2007 0.8
Financial year to date 12.3
Other income/(expenses)
December 2007 (4.0)
September 2007 (0.3)
Financial year to date (4.3)
Profit before taxation
December 2007 7.5
September 2007 0.5
Financial year to date 8.0
Mining and income taxation
December 2007 0.5
September 2007 0.5
Financial year to date 1.0
- Normal taxation
December 2007 0.5
September 2007 0.4
Financial year to date 0.9
- Deferred taxation
December 2007 -
September 2007 0.1
Financial year to date 0.1
Profit before exceptional items
December 2007 7.0
September 2007 0.0
Financial year to date 7.0
Exceptional items
December 2007 -
September 2007 -
Financial year to date -
Net profit
December 2007 7.0
September 2007 0.0
Financial year to date 7.0
Net profit excluding gains and losses
on foreign exchange, financial
instruments and exceptional items
December 2007 6.6
September 2007 0.2
Financial year to date 6.8
Capital expenditure
December 2007 4.5
September 2007 5.6
Financial year to date 10.1
Planned for next six months to June 2008 -
Underground and surface
South African rand and metric units
Total Mine South African Operations
Operating Results Operations Total Driefontein Kloof
Ore milled / treated (000 ton)
- underground
December 2007 3,349 2,957 920 839
September 2007 3,451 3,063 924 893
Financial year to date 6,800 6,020 1,844 1,732
- surface
December 2007 9,281 810 558 169
September 2007 8,899 859 608 101
Financial year to date 18,180 1,669 1,166 270
- total
December 2007 12,630 3,767 1,478 1,008
September 2007 12,350 3,922 1,532 994
Financial year to date 24,980 7,689 3,010 2,002
Yield (grams per ton)
- underground
December 2007 6.5 6.7 7.7 8.4
September 2007 6.6 6.8 8.2 8.1
Financial year to date 6.6 6.7 7.9 8.2
- surface
December 2007 1.1 0.8 0.7 0.9
September 2007 1.1 0.8 0.8 0.7
Financial year to date 1.1 0.8 0.8 0.8
- combined
December 2007 2.5 5.4 5.0 7.1
September 2007 2.6 5.5 5.3 7.4
Financial year to date 2.6 5.4 5.2 7.2
Gold produced (kilograms)
- underground
December 2007 21,916 19,806 7,050 7,024
September 2007 22,886 20,763 7,609 7,250
Financial year to date 44,802 40,569 14,659 14,274
- surface
December 2007 9,766 626 401 155
September 2007 9,586 673 489 69
Financial year to date 19,352 1,299 890 224
- total
December 2007 31,682 20,432 7,451 7,179
September 2007 32,472 21,436 8,098 7,319
Financial year to date 64,154 41,868 15,549 14,498
Operating costs (Rand per ton)
- underground
December 2007 696 715 760 808
September 2007 660 671 735 732
Financial year to date 677 691 748 765
- surface
December 2007 109 74 80 64
September 2007 114 70 73 72
Financial year to date 112 76 76 92
- total
December 2007 265 577 504 683
September 2007 267 539 472 665
Financial year to date 266 558 488 674
South African Operations International
South Operations
Operating Results Beatrix Deep Total
Ore milled / treated (000 ton)
- underground
December 2007 868 330 392
September 2007 913 333 388
Financial year to date 1,781 663 780
- surface
December 2007 - 83 8,471
September 2007 - 150 8,040
Financial year to date - 233 16,511
- total
December 2007 868 413 8,863
September 2007 913 483 8,428
Financial year to date 1,781 896 17,291
Yield (grams per ton)
- underground
December 2007 4.3 6.2 5.4
September 2007 4.1 6.6 5.5
Financial year to date 4.2 6.4 5.4
- surface
December 2007 - 0.8 1.1
September 2007 - 0.8 1.1
Financial year to date - 0.8 1.1
- combined
December 2007 4.3 5.1 1.3
September 2007 4.1 4.8 1.3
Financial year to date 4.2 4.9 1.3
Gold produced (kilograms)
- underground
December 2007 3,698 2,034 2,110
September 2007 3,707 2,197 2,123
Financial year to date 7,405 4,231 4,233
- surface
December 2007 - 70 9,140
September 2007 - 115 8,913
Financial year to date - 185 18,053
- total
December 2007 3,698 2,104 11,250
September 2007 3,707 2,312 11,036
Financial year to date 7,405 4,416 22,286
Operating costs (Rand per ton)
- underground
December 2007 484 958 554
September 2007 455 918 576
Financial year to date 469 938 565
- surface
December 2007 - 52 112
September 2007 - 57 119
Financial year to date - 55 115
- total
December 2007 484 776 132
September 2007 455 651 140
Financial year to date 469 708 136
International Operations
Ghana Australia
Operating Results Tarkwa Damang St Ives Agnew
Ore milled / treated (000 ton)
- underground
December 2007 - - 302 90
September 2007 - - 273 115
Financial year to date - - 575 205
- surface
December 2007 5,588 1,103 1,557 223
September 2007 5,213 1,124 1,484 219
Financial year to date 10,801 2,227 3,041 442
- total
December 2007 5,588 1,103 1,859 313
September 2007 5,213 1,124 1,757 334
Financial year to date 10,801 2,227 3,616 647
Yield (grams per ton)
- underground
December 2007 - - 4.4 8.6
September 2007 - - 4.1 8.7
Financial year to date - - 4.3 8.6
- surface
December 2007 0.9 1.2 1.3 3.4
September 2007 0.9 1.3 1.4 2.7
Financial year to date 0.9 1.3 1.4 3.0
- combined
December 2007 0.9 1.2 1.8 4.9
September 2007 0.9 1.3 1.8 4.7
Financial year to date 0.9 1.3 1.8 4.8
Gold produced (kilograms)
- underground
December 2007 - - 1,336 774
September 2007 - - 1,128 995
Financial year to date - - 2,464 1,769
- surface
December 2007 4,925 1,376 2,084 755
September 2007 4,790 1,475 2,057 591
Financial year to date 9,715 2,851 4,141 1,346
- total
December 2007 4,925 1,376 3,420 1,529
September 2007 4,790 1,475 3,185 1,586
Financial year to date 9,715 2,851 6,605 3,115
Operating costs (Rand per ton)
- underground
December 2007 - - 501 730
September 2007 - - 553 628
Financial year to date - - 526 673
- surface
December 2007 83 182 156 182
September 2007 87 153 169 352
Financial year to date 85 167 163 267
- total
December 2007 83 182 212 340
September 2007 87 153 229 447
Financial year to date 85 167 220 395
Discontinued
Operations
Venezuela##
Operating Results Choco 10
Ore milled / treated (000 ton)
- underground
December 2007 -
September 2007 -
Financial year to date -
- surface
December 2007 360
September 2007 401
Financial year to date 761
- total
December 2007 360
September 2007 401
Financial year to date 761
Yield (grams per ton)
- underground
December 2007 -
September 2007 -
Financial year to date -
- surface
December 2007 1.6
September 2007 1.2
Financial year to date 1.4
- combined
December 2007 1.6
September 2007 1.2
Financial year to date 1.4
Gold produced (kilograms)
- underground
December 2007 -
September 2007 -
Financial year to date -
- surface
December 2007 563
September 2007 489
Financial year to date 1,052
- total
December 2007 563
September 2007 489
Financial year to date 1,052
Operating costs (Rand per ton)
- underground
December 2007 -
September 2007 -
Financial year to date -
- surface
December 2007 256
September 2007 248
Financial year to date 251
- total
December 2007 256
September 2007 248
Financial year to date 251
## Discontinued operations are excluded from Total International and
Total Mine Operations.
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 December 2007 quarter
Carbon
Reef Leader Main VCR
Advanced (m) 4,619 958 1,993
Advanced on reef (m) 748 590 286
Sampled (m) 741 588 192
Channel width (cm) 56 37 87
Average value - (g/t) 17.2 14.0 15.1
- (cm.g/t) 957 1 521 1,314
Driefontein September 2007 quarter
Carbon
Reef Leader Main VCR
Advanced (m) 4,559 1,389 1,574
Advanced on reef (m) 792 572 314
Sampled (m) 744 366 255
Channel width (cm) 58 32 53
Average value - (g/t) 19.1 14.4 23.7
- (cm.g/t) 1,104 461 1,244
Driefontein Year to date F2008
Carbon
Reef Leader Main VCR
Advanced (m) 9,178 2,347 3,567
Advanced on reef (m) 1,540 1,162 600
Sampled (m) 1,485 954 447
Channel width (cm) 57 35 68
Average value - (g/t) 18.1 14.2 18.8
- (cm.g/t) 1,031 498 1,274
Kloof December 2007 quarter
Reef Cobble Kloof Main VCR
Advanced (m) 73 216 1,556 7,232
Advanced on reef (m) 73 17 367 974
Sampled (m) 84 21 333 795
Channel width (cm) 158 121 124 99
Average value - (g/t) 6.1 2.4 10.6 20.6
- (cm.g/t) 959 285 1,319 2,045
Kloof September 2007 quarter
Reef Cobble Kloof Main VCR
Advanced (m) 31 361 1,717 8,186
Advanced on reef (m) 31 - 343 976
Sampled (m) 21 - 270 805
Channel width (cm) 243 - 100 97
Average value - (g/t) 3.9 - 11.3 24.4
- (cm.g/t) 947 - 1,130 2,357
Kloof Year to date F2008
Reef Cobble Kloof Main VCR
Advanced (m) 104 577 3,273 15,418
Advanced on reef (m) 104 17 710 1,950
Sampled (m) 105 21 603 1,600
Channel width (cm) 175 121 113 98
Average value - (g/t) 5.5 2.4 10.9 22.4
- (cm.g/t) 956 285 1,235 2,202
Beatrix December 2007 quarter September 2007 quarter
Reef Beatrix Kalkoenkrans Beatrix Kalkoenkrans
Advanced (m) 8,372 2,281 8,392 2,859
Advanced on reef (m) 2,273 222 1,770 167
Sampled (m) 2,079 204 1,734 168
Channel width (cm) 103 129 83 95
Average value - (g/t) 9.4 21.5 9.0 16.3
- (cm.g/t) 974 2,778 745 1,550
Beatrix Year to date F2008
Reef Beatrix Kalkoenkrans
Advanced (m) 16,764 5,140
Advanced on reef (m) 4,043 389
Sampled (m) 3,813 372
Channel width (cm) 94 114
Average value - (g/t) 9.3 19.5
- (cm.g/t) 870 2,224
South Deep December 2007 quarter September 2007 quarter
Reef VCR Elsburg VCR Elsburg
Advanced (m) 907 1,039 630 1,054
Advanced on reef (m) 67 942 129 685
Sampled (m) 84 - 102 -
Channel width (cm) 67 - 2 80 -
Average value - (g/t) 33.2 5.2 9.3 6.4
- (cm.g/t) 2,241 - 3 740 -
South Deep Year to date F2008
Reef VCR Elsburg
Advanced (m) 1,537 2,093
Advanced on reef (m) 196 1,627
Sampled (m) 186 -
Channel width (cm) 74 -
Average value - (g/t) 19.1 5.7
- (cm.g/t) 1,418 -
1) Development is traversing thin single & poorly developed Multiple Band
Carbon Leader.
2) Full channel width not fully exposed in development, hence not reported.
3) Trackless development in the Elsburg reefs is evaluated by means of the
block model.
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 X30500
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: ZAE000018123
Investor Enquiries
WILLIE JACOBSZ
Telephone: (+27)(11) 644 2460
Facsimile: (+27)(11) 484 0639
e-mail: wjacobsz@gfexpl.com
Media Enquiries
REIDWAAN WOOKAY
Telephone: (+27)(11) 644 2665
Facsimile: (+27)(11) 484 0639
e-mail: reidwaan.wookay@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) K Ansah# J M McMahon *
I D Cockerill * (Chief Executive Officer) J G Hopwood D N Murray
N J Holland * (Chief Financial Officer) G Marcus D M J Ncube
R L Pennant-Rea * * British
P J Ryan # Ghanaian
C I von Christierson
Date: 31/01/2008 08:00:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
