| Fri 9 May 2008, 8:00 | | GFI - Gold Fields Limited - Mine tragedies oversha |
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GFI
GOGOF
GFI - Gold Fields Limited - Mine tragedies overshadow group results
Gold Fields Limited
Incorporated in the Republic of South Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN: ZAE 000018123
MINE TRAGEDIES OVERSHADOW GROUP RESULTS
JOHANNESBURG. 9 May 2008, Gold Fields Limited (NYSE & JSE: GFI) today announced
headline earnings for the March 2008 quarter of R1,246 million, compared with
headline earnings of R456 million and R228 million for the December 2007 and
the March 2007 quarters respectively. In US dollar terms headline earnings for
the March 2008 quarter were US$176 million, compared with earnings of US$67
million and US$32 million for the December 2007 and the March 2007 quarters
respectively.
March 2008 quarter salient features:
Attributable gold production decreased 14 per cent to 827,000 ounces largely
due to power disruptions in South Africa;
Total cash costs increased 21 per cent from R101,532 per kilogram (US$467 per
ounce) to R122,920 per kilogram (US$513 per ounce) mainly due to the loss of
production at the South African operations;
Agreement was reached with Mvela whereby the number of GFL shares to be
exchanged for 15 per cent of GFIMSA will be fixed at 50 million shares;
Cerro Corona on track for production of concentrate during the September 2008
quarter;
Nick Holland takes over as the new Chief Executive Officer from Ian Cockerill
and Terence Goodlace appointed Chief Operating Officer, effective from 1 May
2008.
An interim dividend declared of 65 SA cents per share payable on 2 June 2008.
Statement by Nick Holland, Chief Executive Officer of Gold Fields:
"It is with deep regret that subsequent to quarter end three separate accidents
resulted in the death of 14 of our colleagues. On 28 April a seismic event at
Driefontein`s 10 shaft resulted in the death of four colleagues and at South
Deep one colleague lost his life in a fall of ground accident on 29 April.
On 1 May at South Deep nine colleagues died when a winder rope apparently broke
and a conveyance fell 59 metres to the bottom of the 215 metre long ancillary
ventilation raise hole between 100 and 110A levels. In all instances full
investigations are currently underway. Gold Fields also intends to commission an
external, full safety review at all its operations.
From an operational perspective the March quarter was characterised by two
important developments.
The first was the power disruptions in South Africa which had a significantly
negative impact on Group production and costs.
The second was the 29 per cent increase in the average rand/gold price received
from R170,488 to R220,612 per kilogram as a result of a 17 per cent increase in
the US dollar price of gold, combined with a 10 per cent weakening of the South
African rand quarter on quarter.
Despite the negative impact of the power disruptions in South Africa, the Group
margin increased from 38 per cent in the December 2007 quarter to 42 per cent in
the March 2008 quarter. This demonstrates the benefits of a higher gold price
combined with the shielding effect of the weakening currency on Gold Fields`
earnings which, combined with cost leadership in a very challenging inflationary
environment globally, should enable Gold Fields to capture some of the higher
price received for the benefit of shareholders going forward.
The Group should benefit over the next three quarters as production in South
Africa normalises at stable power supply levels and, in particular, as
production increases from the international operations with the commissioning of
the Cerro Corona mine in the September 2008 quarter and the completion of the
Tarkwa CIL plant expansion during the December 2008 quarter. This, combined with
the reduction in capital expenditure as these projects are completed, is
expected to bolster free cash flow and earnings."
Stock data
Number of shares in issue
- at end March 2008 653,023,547
- average for the quarter 652,691,549
Free Float 100%
ADR Ratio 1:1
Bloomberg / Reuters GFISJ / GFLJ.J
JSE Limited - (GFI)
Range - Quarter ZAR99.00 - ZAR135.00
Average Volume - Quarter 3,450,315 shares / day
NYSE - (GFI)
Range - Quarter US$13.22 - US$17.61
Average Volume - Quarter 8,938,220 shares / day
South African Rand
Salient features
Nine months to
March March
#
2007 2008
Gold produced* 93,592 86,258
Total cash costs 84,987 106,902
Tons milled 38,495 37,356
Revenue 145,936 180,270
Operating costs 226 271
Operating profit 5,771 6,320
Operating margin 40 38
1,835 3,615
Net earnings
337 554
1,682 2,112
Headline earnings
309 324
Net earnings 1,810 2,019
excluding gains and
losses on foreign
exchange, financial
instruments,
exceptional items 333 309
and discontinued
operations
South African Rand
Quarter
March Dec March
#
2007 2007 2008
Gold produced* 30,530 29,861 25,736 kg
Total cash costs 92,172 101,532 122,920 R/kg
Tons milled 13,191 12,630 12,376 000
Revenue 151,175 170,488 220,612 R/kg
Operating costs 235 265 283 R/ton
Operating profit 1,846 2,037 2,566 Rm
Operating margin 37 38 42 %
370 1,938 1,248 Rm
Net earnings
60 297 191 SA c.p.s.
228 456 1,246 Rm
Headline earnings
37 70 191 SA c.p.s.
Net earnings 512 603 1,009 Rm
excluding gains and
losses on foreign
exchange, financial
instruments,
exceptional items 83 93 155 SA c.p.s.
and discontinued
operations
United States Dollars
Salient features
Quarter
March Dec
2008 2007
Gold produced* oz (000) 827 960
Total cash costs $/oz 513 467
Tons milled 000 12,376 12,630
Revenue $/oz 921 784
Operating costs $/ton 38 39
Operating profit $m 347 300
Operating margin % 42 38
$m 167 281
Net earnings
US c.p.s. 26 43
$m 176 67
Headline earnings
US c.p.s. 27 10
Net earnings $m 138 88
excluding gains and
losses on foreign
exchange, financial
instruments,
exceptional items US c.p.s. 21 13
and discontinued
operations
United States Dollars
Nine months to
March March March
# #
2007 2008 2007
Gold produced* 981 2,773 2,967
Total cash costs 398 468 366
Tons milled 13,191 37,356 38,495
Revenue 652 789 628
Operating costs 33 38 31
Operating profit 256 886 798
Operating margin 37 38 40
52 508 254
Net earnings
8 78 47
32 301 233
Headline earnings
5 46 43
Net earnings 71 284 250
excluding gains and
losses on foreign
exchange, financial
instruments,
exceptional items 11 44 46
and discontinued
operations
* Attributable - All companies wholly owned except for Ghana (71.1%).
# Prior period operational results have been restated to exclude the
discontinued assets sold during the December 2007 quarter i.e. the Venezuelan
assets (Choco 10).
Health and safety
We deeply regret to report that five fatal accidents occurred in the
quarter at the South African operations. Kloof and Beatrix had two accidents
each and Driefontein had one. Three of the fatal accidents related to fall -of -
rock related accidents, while the other two included a heat stroke incident and
a ventilation door accident. The fatal injury frequency rate for the March
quarter improved to 0.13 per million hours worked, compared with the previous
quarter`s 0.32. The lost time injury frequency rate improved from 6.9 to 6.4,
the serious injury frequency rate improved from 4.0 to 3.1, and the days lost
injury frequency rate improved from 248 to 241. In addition, Beatrix and
Driefontein achieved 1,000,000 fatality free shifts in the month of January
2008. A full explanation of the safety terms used in this report is available on
our web site.
Following the March quarter, it is with regret that we report on three separate
incidents in which 14 colleagues lost their lives. A seismic event at
Driefontein resulted in the death of four colleagues and at South Deep one
colleague lost his life in a fall of ground accident. The tragedy at South Deep
cost the lives of nine of our colleagues. As a result of the recent spate of
accidents Gold Fields is to commission an external, full safety review at all
of its operations.
The Presidential Audit initiative continued during this quarter. Beatrix, Kloof
and Driefontein have been audited. South Deep will be audited at the beginning
of the June quarter.
Gold Fields remains committed to pursuing the Mine Health and Safety Council
milestones in South Africa. These milestones are based on rate improvements for
fatalities, noise induced hearing losses and silicosis with the objective of
aligning with international norms.
Financial review
Quarter ended 31 March 2008 compared with
quarter ended 31 December 2007
Discontinued operations
The Venezuelan assets (including Choco 10) which were sold during the December
quarter are classed as discontinued operations for accounting purposes, and as
such all prior periods have been restated to exclude results from this
operation.
Revenue
Attributable gold production for the March 2008 quarter amounted to 827,000
ounces, compared with 960,000 ounces in the December quarter, a decrease of 14
per cent. Production at the South African operations decreased from 657,000
ounces to 520,000 ounces largely due to power disruptions. Attributable
production at the international operations increased from 303,000 ounces to
307,000 ounces.
At the South African operations gold production was adversely affected by
reduced power supply from Eskom which resulted in almost a week`s lost
production at the end of January and reduced production over the remaining
period - more detail is provided under the South African operations section
below. As a result of the loss of production a press release on 25 February
2008 gave an updated guidance which forecast a decrease in production at the
South African operations of between 20 and 25 per cent for the March quarter
and between 15 and 20 per cent for the June quarter, when compared with the
December quarter. The actual decrease for the March quarter was 21 per cent.
Kloof, Beatrix and South Deep`s gold production was more or less in line with
the guidance given on 25 February, while Driefontein achieved 10 per cent
above guidance, mainly due to increased surface production and higher
underground grades fed to the mill.
At the international operations, gold production at Tarkwa increased 4 per cent
due to higher processed volumes. At Damang, gold production increased by 19 per
cent due to increased processed volumes at a higher grade. Gold production at
St Ives decreased by 6 per cent due to a decrease in underground volumes at a
lower grade. At Agnew, gold production was similar to the December quarter,
with the increase in high grade underground ore mined and delivered to the mill
offset by lower average grades from the Songvang stockpile. At Songvang the
high grade stockpile was depleted mid-quarter and the low grade stockpile is
now being processed.
The average quarterly US dollar gold price achieved increased from US$784 per
ounce in the December quarter to US$921 per ounce in the March quarter, a 17
per cent increase. The average rand/US dollar exchange rate averaged R7.45,
compared with the R6.76 achieved in the December quarter. As a result of the
above factors, the rand gold price improved from R170,488 per kilogram to
R220,612 per kilogram, a 29 per cent increase. The Australian dollar gold price
increased quarter on quarter from A$886 per ounce to A$1,008 per ounce.
The increase in the rand gold price achieved more than offset the decrease in
production. Revenue in rand terms amounted to R6,109 million (US$820 million),
compared with the previous quarter`s R5,430 million (US$801 million), an
increase of 13 per cent.
Operating costs
Operating costs increased by 5 per cent from R3,341 million (US$494 million) in
the December quarter to R3,503 million (US$470 million) in the March quarter.
Total cash costs increased by 21 per cent from R101,532 per kilogram (US$467
per ounce) in the December quarter to R122,920 per kilogram (US$513 per ounce)
in the March quarter. This increase was mostly due to the loss of production as
a result of the power disruptions in South Africa.
At the South African operations, operating costs decreased from R2,174 million
(US$321 million) to R2,126 million (US$285 million), a decrease of 2 per cent.
This decrease was mainly due to the lower volumes mined and processed because
of the one week closure and constrained production flowing from the power
disruptions during the quarter. In the short term mining costs are mostly of a
fixed nature, resulting in an increase in unit costs as a consequence of the
lost production. As a result total cash costs at the South African operations
increased from R101,170 per kilogram (US$465 per ounce) to R125,181 per
kilogram (US$523 per ounce).
Operating costs at the international operations, including gold -in -process
movements, amounted to R1,417 million (US$190 million), compared with R1,219
million (US$180 million) in the December quarter, an increase of 16 per cent,
of which 10 per cent is due to the weaker rand. Approximately half of the total
dollar increase at the international operations occurred at Tarkwa, which
reflected an increase in costs of US$5 million or 7 per cent due to the
increase in production, together with fuel and power tariff increases. At
Damang, costs increased by US$2 million or 9 per cent as a consequence of
increased volumes mined from the Damang pit cutback and an increase in on-mine
exploration. At St Ives, operating costs in Australian dollar terms, including
gold-in-process movements, increased by A$5 million or 8 per cent, mainly as a
result of increased maintenance costs associated with a planned mill shutdown
and an increase in royalty charges due to the higher gold price. At Agnew,
operating costs decreased by A$2 million or 8 per cent mainly due to the
decrease in processed ore from Songvang. Total cash costs at the international
operations increased from US$470 per ounce to US$500 per ounce quarter on
quarter.
Operating margin
The net effect of the changes in revenue and costs, after taking into account
gold -in -process movements, was an operating profit of R2,566 million (US$344
million). This represented a 26 per cent increase when compared with the R2,037
million (US$300 million) achieved in the December quarter. The Group operating
margin increased from 38 per cent to 42 per cent. The margin at the South
African operations increased from 37 per cent to 41 per cent, and the margin at
the international operations increased from 38 per cent to 44 per cent.
Amortisation
Amortisation decreased from R763 million (US$113 million) in the December
quarter to R714 million (US$95 million) in the March quarter.
This decrease was mainly due to the lower amortisation charge at the South
African operations which reduced from R463 million (US$68 million) to R376
million (US$50 million) because of the loss of production. This was partially
offset by an increase at the international operations in line with the
increased production.
Other
Net interest paid was similar at R88 million (US$12 million) when compared with
the December quarter.
The gain on foreign exchange of R38 million (US$6 million), compares with a
loss of R5 million (US$1 million) in the December quarter. Both result from the
conversion of offshore cash holdings into the functional currency i.e. rands.
The gain on financial instruments for the quarter at R262 million (US$38
million) compares with a loss of R188 million (US$27 million) for the December
quarter. The gain of R262 million (US$38 million) in the March quarter mainly
comprises R136 million (US$18 million) due to the reversal of previous marked
to market unrealised losses on the Mvela floor and cap.
The reversal was as a result of the Mvela floor and cap falling away and being
replaced by a fixed number of 50 million shares. The 50 million shares is
accounted for as an equity instrument and does not need to be marked to market
through the income statement. Also included in the R262 million (US$38 million)
was a R45 million (US$6 million) marked to market gain on the share warrants
included in the Group`s investment portfolio. Added to this was a gain of R83
million (US$11 million) on US$90 million of South African rands/US dollar
currency hedges closed out - refer hedging/derivatives on page 15. 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 derivative
instrument created as a result of the agreement with Mvela Resources. Also
included is a R30 million (US$4 million) unrealised mark to market loss on
share warrants as mentioned above, partly offset by a R10 million (US$1
million) gain on a diesel hedge in Ghana, which has since expired.
Exploration
Exploration expenditure, decreased from R79 million (US$12 million) in the
December quarter to R58 million (US$8 million) in the March quarter. The main
reason for this decline was expenditure at Essakane, sold in the December
quarter, no longer being incurred. Please refer to the Exploration and
Corporate Development section for more detail.
Exceptional items
The exceptional loss in the March quarter amounted to R42 million (US$11
million) compared with a gain of R1,417 million (US$205 million) in the
December quarter. The loss in the March quarter mainly relates to a provision
for costs at Driefontein with respect to the suspension of the 9 shaft project
of R45 million (US$6 million). This project was suspended due to the lack of
power supply. The gain in the December quarter mainly comprised, 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).
Taxation
Taxation for the quarter amounted to R567 million (US$77 million) compared with
R418 million (US$61 million) in the December quarter. This increase reflects
the increase in profit before taxation and exceptional items 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, which included the mine
Choco 10, were sold, and its results, including those of prior periods were
accounted for as discontinued operations. As the sale was concluded in the
December quarter no amount is reported in the March quarter. In the December
quarter 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 has necessitated the restatement of prior period`s 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 profit from the sale of the Venezuelan assets in the December quarter
amounted to R74 million (US$11 million). Income from Choco 10 for the two
months ended November 2007, the effective date of sale, of R45 million (US$6
million) was also accounted for in the December quarter.
Earnings
Net profit attributable to ordinary shareholders amounted to R1,248 million
(US$167 million) or 191 SA cents per share (US$0.26 per share), compared with
R1,938 million (US$281 million) or 297 SA cents per share (US$0.43 per share)
in the previous quarter.
Headline earnings i.e. earnings less the after tax effect of asset sales,
impairments, the sale of investments and discontinued operations, was R1,246
million (US$176 million) or 191 SA cents per share (US$0.27 per share),
compared with earnings of R456 million (US$67 million) or 70 SA cents per share
(US$0.10 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 R1,009
million (US$138 million) or 155 SA cents per share (US$0.21 per share),
compared with earnings of R603 million (US$88 million) or 93 SA cents per share
(US$0.13 per share) reported last quarter.
Balance sheet
The increase in investments compared with the June 2007 balance sheet 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. Added
to this are marked to market gains on listed investments.
Cash flow
Cash inflow from operating activities for the quarter was R3,039 million
(US$408 million), compared with R1,148 million (US$175 million) in the December
quarter. This quarter on quarter increase of R1,891 million (US$233 million) is
mostly due to the increase in operating profit and a working capital inflow of
R794 million (US$115 million) in the March quarter compared with an outflow of
R571 million (US$83 million) in the December quarter due to timing of gold
sales and the payment of creditors.
Capital expenditure decreased from R2,476 million (US$364 million) in the
December quarter to R2,086 million (US$277 million) in the March quarter.
The majority of this decrease is due to two factors; firstly, the payment in
the December quarter 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 and secondly, a reduction of capital expenditure
at Cerro Corona as this project approaches completion. Approximately half of
the capital expenditure during the March quarter was spent on growth projects.
At the South African operations capital expenditure decreased from R839 million
(US$124 million) in the December quarter to R785 million (US$105 million) in
the March quarter. This decrease of R54 million includes R32 million for
Driefontein`s 9 shaft project, due to the suspension of this project, and R23
million at Kloof, mainly on reduced expenditure on mining equipment and the
suspension of the KEA project. Expenditure on ore reserve development at
Driefontein, Kloof, and Beatrix accounted for R100 million (US$13 million),
R136 million (US$18 million), and R70 million (US$9 million) respectively.
Expenditure on the 9 shaft project at Driefontein and expenditure on the new
mine development project at South Deep amounted to R61 million and R89 million
respectively.
At the international operations capital expenditure increased from R597 million
(US$88 million) to R708 million (US$95 million). In Ghana the increase was
mainly at Tarkwa as a result of increased expenditure on the CIL plant from
US$20 million to US$28 million. In Australia capital expenditure was similar at
A$38 million (US$34 million), mainly on development and exploration drilling.
Capital expenditure at the Cerro Corona mine in Peru amounted to R576 million
(US$77 million) in the March quarter compared with R649 million (US$96 million)
in the December quarter. Refer to the Capital and Development Project section
for more detail.
In the December quarter cash proceeds from the sale of Essakane amounted to
R1,042 million (US$150 million) and 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).
Purchase of investments of R258 million (US$36 million) includes the purchase
of 4.7 million Sino shares, at a cost of R185 million (US$27 million) and R75
million (US$10 million) expenditure on the exercise of 2,292,172 Mvela options
granted to Gold Fields as part of an agreement with Mvelaphanda Resources.
Net cash outflow from financing activities amounted to R214 million (US$29
million). Loans received amounted to R1,535 million (US$210 million), which
includes US$43 million (R314 million) drawn down on an offshore finance
facility, and preference shares issued amounting to R1,200 million (US$173
million). Loans repaid of R1,788 million (US$244 million) includes the
repayment of an offshore loan of R1,194 million (US$172 million) and local
loans repaid of R585 million (US$73 million). Net cash outflow from financing
activities in the December quarter 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 in the December quarter
amounted to R727 million (US$108 million) and include a local loan facility
draw down of R514 million (US$76 million) and the draw down on an offshore
finance facility of R213 million (US$32 million).
Net cash inflow for the quarter was R470 million (US$55 million) compared with a
net cash outflow of R143 million (US$15 million) in the December quarter. After
accounting for a translation gain of R154 million (loss of US$1 million), the
cash balance at the end of March was R1,944 million (US$243 million). The cash
balance at the end of December was R1,321 million (US$189 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 there is an increased 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.
Project 100+
Project 100+ consists of a number of discrete projects focused on ongoing cost
reduction through eliminating inefficiencies and inward investments.
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 March 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 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 is in the monitoring phase, allowing
maintenance practices to be modified to initiate maintenance based on pump
efficiency. The first pump station monitored indicates that the anticipated
efficiency improvement of 5 per cent can be expected. This project will deliver
R10 million per annum savings from reduced electricity consumption due to
improved efficiency, and from a reduction in pump repair costs.
On the labour management front, the roll-out of a module which sets standards
and norms for effective labour management continues. A human resource shared
services centre is in the process of being established for the West Wits area.
The intent is to reduce shifts lost as a result of inefficient practices
around engagement, medical examinations and training, as well as improving upon
the administration processes currently practiced.
The cost reporting and management benchmark module is progressing well. In
addition, we have re -introduced a budget control system 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
The March quarter started with the power crisis late in January, followed by
the rapid devaluation of the rand against all major currencies. We also saw the
beginning of a series of unprecedented steel price increases. From January
monthly steel price adjustments were announced with increases in excess of 60
per cent up to and including May. Record levels of inflation were experienced in
the March quarter due to these steel price increases impacting a large number
of our supply contracts and spend value. Added inflation pressure also came from
areas such as timber, fuel/diesel, transport, food, chemicals and grinding
balls.
The year to date inflation impact on contracted supply and services is
estimated at around 10 per cent. This is largely due to the steel and timber
price increases. To put the steel increases in context, the projected fiscal
year 2009 impact of steel alone on the total supply and service spend is in
excess of 10 per cent. The increase on the total basket of supply and service
spend in fiscal 2009 is estimated at between 20 and 30 per cent.
Supply chain strategy has had to focus on guaranteeing supply, with potential
shortages across certain commodities being identified because of the impact of
power supply shortages on the SA economy. Appropriate strategies were adopted,
such as additional storage and stocking up on critical items.
Despite the magnitude of issues presented this quarter there were some
highlights. Project Beyond initiatives delivered savings through competitive
tendering and negotiations in cables, paper, fittings and spares, resulting in
around R5 million annualised savings for the quarter. Cumulative
contracted benefits for the financial year to date are standing at R21 million.
In addition, inflation cost avoidance was also achieved during the quarter
across areas such as oils and lubes, piping, backfill slagment, explosives and
cement, estimated around R9 million. Cumulative annualised cost avoidance for
fiscal year 2008 to date is estimated at around R30 million.
The June quarter will have a continued strong focus on mitigating risk and
guaranteed supply strategies. Cost savings initiatives will continue to
optimise the total cost baseline, quality and efficiencies.
International Operations Strategic Sourcing and
Integrated Supply Chain Initiatives
During the March quarter continued global inflation pressures were experienced
across our Australian and Ghanaian operations in areas such as diesel, grinding
balls, cyanide, cement and chemicals. Continued global demand growth has also
resulted in double digit inflation during fiscal year 2008 for the
International operations, including capital projects supply. Fiscal year 2009
is expected to reflect the full compounded price increase impact of the global
double digit commodity inflation boom from the 2008 base.
Integrated strategic sourcing and supply initiatives in Australia delivered
around US$2 million in new and multi -year carry-over contracted benefits.
New cost reduction benefits were achieved over and above the US$2 million in
categories such as crusher feed and pastefil haulage scope consolidations,
together with tendering of steel sections and ventilation bags. Cumulative
contracted total cost and carry over benefits for fiscal year to date stand at
around US$5 million.
Some cost avoidance in Ghana was achieved in keeping in-land logistics costs
down in spite of high general inflation. Ghana also managed formally to secure
a base supply of tyres in a long-term Group arrangement for between 60 and 70
per cent of supply over the next 5 years and increased focus was given on
guaranteed supply in critical stock areas. Furthermore increased focus on fuel
consumption and quality management has started showing results in the form of
reduced truck stoppages.
For the June quarter, in Ghana, continued focus will be on fuel depot and
quality management, guaranteed supply and finalising the case and contract for
an emulsion production facility at the Tarkwa operations. Australia will
continue with cost optimization initiatives and Peru will continue to focus on
contract transition planning and staff recruitment. Also in Peru, we will
finalise shipping line strategy and negotiations for outbound concentrate.
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 3.3 per cent for the South African operations on
a pro -forma basis using this quarter`s rand gold price of R220,000 per
kilogram. This compares with a fixed rate of 1.5 per cent applied in the
previous draft. The gold industry h as made submissions to the National
Treasury on this matter.
Power shortages
As a result of the Eskom power crisis which commenced end January 2008 Gold
Fields issued a statement on 25th February 2008 indicating the impact of these
disruptions on the South African operations. Based upon the information at the
time the following guidance was given and this has been updated to include the
latest guidance for the June quarter:
Description Guidance Actual for Guidance Latest
given on 25 March given on 25 guidance for
Feb for quarter# Feb for June June quarter
March quarter
quarter
Driefontein:
Gold
production
(kg) 5,900 6,530 6,800 6,800
Total cash
costs (R/kg) 116,250 104,870 102,150 104,000
Power
consumption
(Average 90 84 90 95
% of
historical) available
Shafts
affected
(numbers) 6,7&9 6,7&9 6,7&9 6,7&9
People
affected (No) 2,600 2,600 2,600 Recruiting
to fill
vacancies
Kloof:
Gold
production
(kg) 5,450 5,458 5,910 5,600
Total cash
costs (R/kg) 115,200 112,514 104,061 115,000
Power
consumption
(Average 90 88 90 95
% of
historical) available
Shafts
affected
(numbers) 3&8 3&8 3&8 3&8
People
affected (No) 2,300 2,300 2,300 Recruiting
to fill
vacancies
Beatrix:
Gold
production
(kg) 2,644 2,542 3,733 3,300
Total cash
costs (R/kg) 150,908 160,071 108,210 125,000
Power
consumption
(Average 90 90 90 90
% of
historical)
Shafts affected available
(numbers) There were no people or shafts affected and the mine
would and has worked within the power allocation
People affected (No) constraint.
South Deep:
Gold
production (kg) 1,400 1,637 1,200 1,200
Total cash
costs (R/kg) 237,200 194,258 250,000 250,000
Power consumption
(Average 90 95 90 90
% of historical) available
Shafts affected (numbers) There were no people or shafts
directly affected and
the mine would and has worked within the power
People affected (No) allocation constraint. Downscaling is necessary as a
result of the depletion of the VCR reef horizon above
95 level. This affects some 2,000 people. There is
an opportunity for redeployment of many of these
employees to other mines
# At the South African operations, the aggregate March quarter usage amounted to
approximately 88 per cent of average historic power consumption.
On the 7th March 2008 the Department of Minerals and Energy announced that
following representations by the Chamber of Mines and consultations with all
stakeholders, the mining industry had been allocated an additional 260 Mw in
electrical power. On the evening of the 14th March 2008 Gold Fields was
informed that it could consume an additional 26 Mw, split between Driefontein
and Kloof. This power was to be used to minimise job losses and resume
operations on the shafts indicated in the table above. There were no additional
power allocations given to Beatrix and South Deep. Power remains a critical
issue for South Africa as it enters the winter months and Gold Fields
operations will continue with a strategy to reduce consumption through power
conservation initiatives.
The latest guidance for the June quarter given above assumes continuous
production but incorporates,along with the affected shafts as mentioned above,
the following:
Driefontein Production is expected to be impacted by safety related stoppages
at 10 shaft and a review of pillar mining across the operation.
Kloof Production is expected to be impacted by lower grades at 7
shaft and a review of pillar mining across the operation.
Beatrix Production is forecast lower than the 25 February guidance
due to a poor labour turnout over the two long weekends in April.
South Deep Production is expected to be impacted by the DME Section
54 stoppage due to the ancillary ventilation raise hole accident
and the slow build-up thereafter, as well as potential
disruptions arising from the mine restructuring.
Power supply costs
Eskom announced that power costs will increase by 14.2 per cent effective from
1 April 2008, with an additional increase of 2 cents per kilowatt hour
announced in the Minister of Finance budget speech, which equates to a further
12 per cent increase from 1 July 2008. Eskom has requested an additional
increase which could be as much as 53 per cent over the next year. When added
to the recent above inflation price increases in steel, fuel, timber and food,
and the effect the weakening rand is having on imported goods, these Eskom
increases will have a significant detrimental effect on future cash costs.
Clarity still needs to be given on the pricing mechanism as it relates to the
power conservation programmes. This will have no effect on the June quarter as
any penalties are only expected to be applicable after 1 July 2008.
Driefontein
March 2008 December 2007
Gold produced - kg 6,530 7,451
- 000`ozs 209.9 239.6
Yield - underground - g/t 8.6 7.7
- combined - g/t 4.6 5.0
Total cash costs - R/kg 104,870 94,390
- US$/oz 438 434
Gold production decreased 12 per cent from 239,600 ounces in the December
quarter to 209,900 ounces in the March quarter. The slow start - up after the
traditional extended Christmas break and the power rationing, as described
earlier, had a detrimental impact on mining operations.
Increased seismicity also impacted negatively during the quarter. The shortfall
in production was directly attributable to the inability to utilise the full
capacity of infrastructure due to the Eskom power crisis. The restricted power
supply resulted in the stopping of the lower grade 6 and 7 shafts, with the
result that the underground yield increased from 7.7 grams per ton to 8.6 grams
per ton for the quarter. Underground tonnage reduced from 920,000 tons in the
December quarter to 669,000 tons in the March quarter, offset by an increase in
surface tonnage from 558,000 tons to 757,000 tons in an effort to ameliorate
the effect of the reduction in underground ore caused by the power rationing.
Surface yield improved from 0.7 grams per ton in the December quarter to 1.1
grams per ton in the March quarter. The Eskom power restrictions resulted in
approximately 46,000 ounces of lost production during the quarter.
Main development decreased by 23 per cent for the quarter and on-reef
development decreased 32 per cent as a result of the power rationing and also
due to increased seismicity. Development values increased 150 per cent mainly
due to higher values intersected in the Multi Band Carbon Leader Reef at 5
shaft, in the Single Band Carbon Leader Reef at 1 shaft and in the Ventersdorp
Contact Reef in the shaft pillar area at 4 shaft.
Operating costs decreased by 3 per cent from R744 million (US$110 million) to
R723 million (US$97 million) mainly due to a decrease in consumables, incentive
payments and electricity costs. Total cash costs which were negatively affected
by the lower production, increased 11 per cent in rand terms and 1 per cent in
US dollar terms, from R94,390 per kilogram to R104,870 per kilogram and from
US$434 per ounce to US$438 per ounce respectively. The increase in unit costs
was due to the 4-day mine wide stoppage and the subsequent power rationing. A
corresponding reduction in costs was not realised due to the fixed nature of
costs, particularly labour costs.
Operating profit increased from R523 million (US$77 million) in the December
quarter to R736 million (US$99 million) in the March quarter as a result of the
higher gold price, which more than offset the decrease in production.
Capital expenditure decreased from R267 million (US$39 million) to R227 million
(US$30 million) quarter on quarter. This decrease was mainly due to the
suspension of the 9 sub-vertical shaft deepening project.
Gold production for the June quarter is forecast to increase by around 4 per
cent to 218 ,000 ounces due to the partial restoration of power. This is
similar to the guidance given on 25 February 2008. Production at 6 and 7 shafts
is still expected to be adversely impacted due to the shortage of labour, which
is in the process of being employed. The original labour at 6 and 7 shafts,
before the reduction of power, has replaced the contractors terminated during
the quarter. Once steady state is achieved and production fully restored at 6
and 7 shafts Driefontein should revert back to around 225,000 ounces per
quarter. The quarter will also be affected by a safety related stoppage at 10
shaft and a review in pillar mining. Total cash costs should be similar in the
June quarter as the higher anticipated production will be offset by higher
electricity costs due to price increases and higher commodity price increases.
Capital expenditure is planned to increase to approximately R300 million (US$38
million) mainly due to additional spend on safety and other sustaining projects.
Kloof
March December
2008 2007
Gold produced - kg 5,458 7,179
- 000`ozs 175.5 230. 8
Yield - underground - g/t 9.9 8.4
- combined - g/t 6.8 7.1
Total cash costs - R/kg 112,514 91,029
- US$/oz 470 419
All mining activity during the March quarter was adversely affected by Eskom`s
power rationing, the slow start -up in January after the traditional Christmas
break, which accounted for approximately 2,000 ounces, and other business
interruptions, which included safety related production stoppages at 2 sub-
vertical shaft following a fatality and a subsequent fire at the same shaft,
which, together, accounted for a further 8 ,000 ounces. The Eskom power
restrictions resulted in approximately 45,000 ounces of lost production during
the quarter.
Gold production decreased by 24 per cent from 230,800 ounces in the December
quarter to 175,500 ounces in the March quarter. This was due to a 38 per cent
decrease in underground tonnage from 839,000 tons to 521,000 tons due to the
business interruptions noted above. The underground yield improved 18 per cent
from 8.4 grams per ton to 9.9 grams per ton due to cessation of mining in low
grade areas as a result of the reduced power supply and improved sweepings and
vampings, which resulted in a higher than normal mine call factor. Surface tons
partially replaced the lost underground tonnage, increasing from 169,000 tons
to 287,000 tons. This included an increase in toll milling at South Deep to
make use of spare plant capacity. The surface grade of waste tons treated was
1.1 grams per ton due to selective screening compared with 0.9 grams per ton in
the previous quarter.
Main development decreased by 29 per cent quarter on quarter, with on - reef
development decreasing by 20 per cent due to the reduced mining activity.
Average grades were in line with historic levels.
Operating costs decreased from R689 million (US$102 million) in the December
quarter to R647 million (US$87 million) in the March quarter. This was mainly
due to the impact of Eskom`s power rationing that resulted in a decrease in
consumables and incentive payments due to lower mining activity. As a
consequence of the lower gold production, total cash cost increased 24 per cent
from R91,029 per kilogram to R112,514 per kilogram. In US dollar terms, total
cash costs increased 12 per cent from US$419 to US$470 per ounce. A
corresponding reduction in costs was not realized due to the fixed nature of
costs, particularly labour costs.
Operating profit increased from R528 million (US$78 million) in the December
quarter to R555 million (US$75 million) in the March quarter as a result of the
higher gold price and reduction in operating costs, notwithstanding the lower
production.
Capital expenditure at R212 million (US$28 million) decreased by 6 per cent
compared with the previous quarter`s expenditure of R226 million (US$33
million) mainly due to lower spend on the 1 shaft pillar extraction and the
terminated KEA project.
Gold production for the June quarter is forecast 3 per cent higher than that
achieved in the March quarter to around 18 0,000 ounces, due to the partial
restoration of power. This is 5 per cent below the 25 February 2008 guidance as
Kloof is still constrained at 3 and 8 shafts due to a decision not to mine
remnant pillars for safety reasons, lower planned grades being experienced at 7
shaft and a labour shortfall similar to that at Driefontein. Total cash cost
will in crease in the June quarter as result of the higher electricity costs
due to price increases and higher commodity price increases. Capital expenditure
is planned to increase to around R240 million (US$30 million) mainly due to
additional spend on safety and other sustaining projects.
Beatrix
March December
2007 2007
Gold produced - kg 2,542 3,698
- 000`ozs 81.7 118.9
Yield - underground - g/t 3.9 4.3
Total cash costs - R/kg 160,071 108,031
- US$/oz 668 497
Gold production at Beatrix decreased from 118,900 ounces in the December
quarter to 81,700 ounces in the March quarter. Tons milled decreased from
868,000 tons to 656,000 tons and yield decreased from 4.3 grams per ton to 3.9
grams per ton for the March quarter. The overall reduction in gold and tonnage
throughput is primarily as a result of the impacts of the Eskom electricity
supply disruptions, and the lower volumes in the January month arising from the
traditional Christmas break. Production volumes at the West section, the
deepest and highest energy user, were the most affected. The Eskom power
restriction resulted in approximately 14,500 ounces of lost production in this
quarter with the balance due to a poor mine call factor and the traditionally
slow start up in January. The drop in yield was adversely impacted by the low
mine call factor due to increased blasting fragmentation. Implementation of
external mine call factor review recommendations to convert explosives type and
review drilling and blasting practices continued. This issue still remains a
technical challenge at the Beatrix North section.
The energy crisis also impacted on the development volumes, with total main
development down by 13 per cent, quarter on quarter and main on - reef
development decreasing by 22 per cent in the March quarter. Main development
values declined by 8 per cent to 1,040 cm.g/t as a result of raises traversing
and opening-up varying grade areas as anticipated by local geological models.
Operating costs quarter on quarter increased by 2 per cent from R420 million
(US$62 million) to R429 million (US$59 million). The increase in costs was
mainly due to the longer March working quarter, annual salary increases,
increased maintenance over the Christmas break and higher than inflationary
commodity price s offset by savings on overtime, production incentives and
consumables. Total cash costs increased 48 per cent (34 per cent in US dollar
terms) from R108,031 per kilogram (US $497 per ounce) in the December quarter
to R160,071 per kilogram in (US$668 per ounce) the March quarter, mainly due to
the lower gold output.
Operating profit in the March quarter at R146 million (US$20 million) was lower
than the R209 million (US$31 million) in the December quarter, as the higher
gold price was more than offset by lower gold production.
Capital expenditure increased by 6 per cent from R142 million (US$21 million)
in the December quarter to R150 million (US$20 million) in the March quarter
mainly due to higher expenditure on the 3 shaft project and high density
residential upgrades.
Gold production for the June quarter is forecast to increase by approximately
30 per cent compared with the March quarter to around 106,000 ounces. However,
this is 12 per cent below the guidance given on 25 February 2008 mainly due to
a poor turnout for voluntary shifts over the two long weekends in April. Total
cash cost compared with the February guidance will in crease in the June quarter
as a result of the lower anticipated production and the higher electricity costs
due to price increases and higher commodity price increases. Capital expenditure
in the June quarter should be approximately R170 million (US$21 million).
South Deep
March December
2008 2007
Gold produced - kg 1,637 2,104
- 000`ozs 52.6 67.6
Yield - underground - g/t 6.4 6.2
- combined - g/t 5.9 5.1
Total cash costs - R/kg 194,258 147,719
- US$/oz 811 680
Gold production at South Deep decreased by 22 per cent from 67,600 ounces in
the December quarter to 52,600 ounces in the March quarter. The decrease in
gold production was mainly due to the stopping of VCR mining above 95 level
which has gradually reduced production since the December 2007 quarter to final
depletion in the March 2008 quarter. Underground tons reduced from 330,000 tons
to 250,000 tons quarter on quarter. The traditional Christmas break and the
interruptions to the Eskom power supply also contributed to the lower gold
production. The Eskom power restriction s resulted in approximately 4,500
ounces of lost production during the quarter. Surface ore processed decreased
from 83,000 tons to 26,000 tons in the March quarter and is essentially
depleted. The increased yield is due to a higher mine call factor and is
unlikely to be sustainable.
Development decreased 37 per cent for the March quarter mainly due to the
cessation of conventional VCR mining and reduced trackless mining due to
seismicity. Capital metres were similiar but will increase over the next two
quarters as the mobilisation of the mechanised crews to develop the below 95
level infrastructure starts to build momentum.
Operating costs at R327 million (US$54 million) increased by 2 per cent
compared with the December quarter`s cost of R320 million (US$47 million). This
was mainly due to the cessation of capital development for the VCR mining and
the consequent expenditure of the underlying costs, and the effects of
inflationary increases in commodity prices. The operation is now overstaffed by
approximately 2,000 heads due to the cessation of the conventional VCR mining.
As a result of the decreased gold production the total cash cost increased by
32 per cent (19 per cent in US dollar terms) from R147,719 per kilogram (US$680
per ounce) in the December quarter to R194,258 per kilogram (US$811 per ounce)
in the March quarter.
Operating profit in the March quarter at R37 million (US$5 million) was similar
to the December quarter, as the increased gold price was offset by the lower
gold production.
Capital expenditure decreased from R204 million (US$30 million) in the December
quarter to R196 million (US$26 million) in the March quarter, mainly due to
scheduled delays on the ventilation shaft and exploration and drilling projects
offset by spending on the trackless fleet.
Gold production for the June quarter is forecast to be in line with the
guidance given on 25 February 2008, at approximately 40 ,000 ounces.
The lower guidance quarter on quarter is mainly due to the stopping of the VCR
and operational restructuring. Post the restructuring of South Deep the
operation will not pursue conventional mining and will be fully mechanised in
its stoping and development. The focus into the future will be on speeding up
development of the ore body, completing the Twin shaft infrastructure and
increasing the rate of de-stress mining.
Until finalisation of the above activities, production is expected to be
maintained at approximately 50,000 ounces per quarter. Total cash costs per
ounce will increase on the assumption that restructuring initiatives are not
yet completed by the end of the quarter, as a consequence of the stopping of
the VCR as well as increases in electricity and commodity prices. The mine is
in consultation with the trade unions to restructure South Deep to reduce this
over complement. Capital expenditure in the June quarter is forecast to
increase to approximately R220 million (US$28 million) with the delivery of
the equipment for the mechanised development above 95 level and also the
equipment for the mechanisation of the de-stress mining areas.
As a result of the fatal accident on 1 May it has been decided that no capital
shaft development work be undertaken below 95 level until such time as a second
means of egress can be re -established. Planning is being advanced to replace
the winder in the ancillary ventilation raise hole where the accident occurred
and the redeployment of Murray and Roberts crews above 95 level. This is
expected to take approximately three months to install after which capital
development can resume.
International Operations
Ghana
Tarkwa
March December
2008 2007
Gold produced - 000`ozs 165.1 158.3
Yield - heap leach - g/t 0.7 0.7
- CIL plant - g/t 1.5 1.4
- combined - g/t 0.9 0.9
Total cash costs - US$/oz 436 413
Gold production increased by 4 per cent from 158,300 ounces in the December
quarter to 165,100 ounces in the March quarter. Plant throughput (CIL and HL)
increased by 3 per cent from 5.59 million tons to 5.77 million tons. Yield at
the CIL improved from 1.40 gram per ton to 1.48 gram per ton contributing
significantly to the higher quarterly production.
Total tons mined, including capital stripping, reduced from 30.5 million tons
to 29.2 million tons. Ore mined decreased from 5.5 million tons to 4.9 million
tons in the March quarter mainly due to increased fleet standing times due to
poor tyre quality together with reduced availability of mining equipment as a
result of scheduled equipment maintenance, exacerbated by unplanned breakdowns.
The mined grade of 1.24 gram per ton was unchanged quarter on quarter. The
overall strip ratio for the quarter was 4.96 compared with 4.59 in the December
quarter.
Total feed to the heap leach section was 4.32 million tons compared with 4.17
million tons for the December quarter. Heap leach yield for the quarter was
0.68 grams per ton compared with 0.70 for the December quarter. The heap leach
section produced 94,700 ounces, compared with 94,000 ounces in the December
quarter. The total feed to the CIL plant was 1.45 million tons compared with
1.42 million tons in the December quarter. The increased throughput, coupled
with the improved yield, resulted in gold production of 70,400 ounces in the
March quarter compared with 64,300 ounces in the December quarter. There was a
net gold-in-process build-up of 5,800 ounces for the quarter (CIL released
3,500 ounces offset by a build-up at the Heap leach of 9,300 ounces, mainly due
to slow leaching at the South heap, which moved to its sixth lift during the
quarter.)
Operating costs, including gold-in -process movements, increased from US$67
million (R453 million) in the December quarter to US$72 million (R533 million)
in the March quarter. The increase in operating costs was markedly influenced
by a higher fuel price, higher explosives costs and increased maintenance costs
during the quarter. Total cash costs increased from US$ 413 per ounce to US$436
per ounce.
Operating profit increased 29 per cent from US$61 million (R414 million) in the
December quarter to US$78 million (R582 million) in the March quarter.
Capital expenditure increased from US$46 million (R314 million) in the December
quarter to US$54 million (R397 million) in the current quarter, with
expenditure on the Phase 5 heap leach project and the CIL expansion project at
US$8 million and US$28 million respectively. The CIL expansion project
construction continues and remains on track for first rock into the mill during
the September quarter. The Heap Leach project is ahead of schedule on
construction and the total project cost is expected to be slightly below the
approved US$49 million. Expenditure on the pre-stripping at the Teberebie
cutback (US$12 million) continued.
Gold production for the June quarter is forecast to be similar to the March
quarter. Total cash costs are expected to increase marginally in the June
quarter as a result of increases in the fuel price and increased power tariffs.
Damang
March December
2008 2007
Gold produced - 000`ozs 52.6 44.2
Yield - g/t 1.3 1.2
Total cash costs - US$/oz 546 605
Gold production exceeded expectation for the March quarter with an increase of
19 per cent from 44,200 ounces in the December quarter to 52,600 ounces. This
increase is attributable to a 12 per cent increase in throughput and an
increase in yield to 1.3 grams per ton, compared with 1.2 grams per ton in the
December quarter. The increase in yield was due to higher grade ore from the
Damang pit cutback.
Total tons mined, including capital stripping, increased by 14 per cent from
8.0 million tons in the December quarter to 9.1 million tons in the March
quarter. This increase was mainly as a result of pre -strip activity at Huni
pit. Ore mined increased from 978,000 tons to 1,081,000 tons in the March
quarter. The resultant strip ratio was 7.46 compared with the 7.20 in December
quarter.
The mill throughput increased from 1.10 million tons in the December quarter to
1.2 3 million tons in the March quarter. This increase was due to improved
fragmentation and crusher availability, coupled with a slightly longer quarter.
Operating costs, including gold-in-process movements, increased from US$27
million (R183 million) in the December quarter to US$29 million (R232 million)
in the March quarter. The main factors contributing to the increase in
operating costs were the increased mining volume, a higher diesel price and
increased brownfields exploration drilling activities. Total cash costs
reduced from US$605 per ounce to US$546 per ounce reflecting the increase in
production.
Operating profit for the quarter at US$19 million (R138 million) was
significantly higher than the US$9 million (R58 million) achieved in the
December quarter.
Capital expenditure at US$8 million (R56 million) was similar to that spent in
the previous quarter, with the majority of this expenditure on Huni pit pre -
waste mining.
Gold production in the June quarter is expected to be similar to the March
quarter. Total cash costs will increase slightly due to the increasing fuel
price and mining contractor cost.
Australia
St Ives
March December
2008 2007
Gold produced - 000`ozs 103.9 110.0
Yield - heap leach - g/t 0.6 0.7
- milling - g/t 2.4 2.6
- combined - g/t 1.7 1.8
Total cash costs - A$/oz 655 584
- US$/oz 592 521
Gold produced decreased from 110,000 ounces in the December quarter to 103,900
ounces in the March quarter. This was mainly due to a decrease in yield from
1.8 grams per ton to 1.7 grams per ton. Processed tons and plant recovery were
marginally higher quarter on quarter.
Gold produced from the Lefroy mill decreased from 95,200 ounces to 91,300
ounces. Tons milled increased slightly from 1.15 million tons to 1.19 million
tons. However, this was offset by a decrease in yield from 2.6 grams per ton to
2.4 grams per ton due to the reduction of available higher grade underground
ore. This resulted in the processing of additional lower grade open pit
material.
Gold produced from heap leach decreased from 14,800 ounces in the December
quarter to 12,600 ounces in the March quarter. Tons treated from heap leach
decreased from 708,200 tons to 698,000 tons and recoveries decreased from 72
per cent to 69 per cent as a result of a decrease in the proportion of oxide
ore mined from the Leviathan pit cutback as depths increase.
Open pit operations mined 1.4 million tons of ore for the quarter, the same as
the December quarter. Grade decreased from 1.7 grams per ton to 1.5 grams per
ton. Ore volumes increased from the Leviathan cutback, Cave Rocks and North
Revenge pits, while less ore was produced from the NRK pit and the Bahama pit,
which is nearing completion. The average strip ratio including capital waste
was 5.4 in the March quarter, compared with 5.7 in the December quarter.
Underground operations mined 217,000 tons of ore at 5.0 grams per ton for the
quarter, compared with 254,000 tons at 5.4 grams per ton in the December
quarter. At Argo, ore production was negatively impacted by delays in paste
filling. The past e fill issues have subsequently been resolved but the full
benefit of this will only be seen in the September quarter.
Operating costs, including gold-in -process movements, increased from A$65
million (R394 million) in the December quarter to A$70 million (R472 million)
in the March quarter. This increase was mainly due to processing higher cost
stockpiled ore which replaced production from underground operations and
increased third party royalty charges due to the higher gold price. Total cash
costs increased from A$584 per ounce (US$521 per ounce) in the December quarter
to A$655 per ounce (US$592 per ounce) in the March quarter.
Operating profit increased from A$32 million (R192 mil lion) to A$34 million
(R231 million) due to the higher gold price.
Capital expenditure was similar at A$30 million (R175 million) quarter on
quarter. Mine development capital of A$20 million (R135 million) included
increased development activity at the Cave Rocks underground mine, the
continuation of development of the Argo and Belleisle underground mines and
waste stripping at the future Agamemnon South pit. Infrastructure development
continued at Cave Rocks and Belleisle. Exploration expenditure was marginally
lower.
Gold production for the June quarter is expected to be similar to the March
quarter, while total cash costs are expected to increase as a result of St
Ives achieving the cumulative 3.3 million ounces of production required to
trigger the volume based royalties included as part of the St Ives
acquisition. Development of the new underground mines at Cave Rocks
and Belleisle remains a focus to return production to an average of 110,000
ounces to 120,000 ounces per quarter for F2009.
Agnew
March December
2008 2007
Gold produced - 000`ozs 49.0 49.2
Yield - g/t 4.6 4.9
Total cash costs - A$/oz 523 470
- US$/oz 473 419
Gold production was similar to the December quarter at 49,000 ounces.
The 5 per cent increase in processing volumes from 313,000 tons in the
December quarter to 329,000 tons in the March quarter, was offset by a 6 per
cent decrease in yield, from 4.9 grams per ton to 4.6 grams per ton.
The lower yield was due to the depletion of the high grade Songvang open pit
stockpiles and the consequent substitution with low grade Songvang open pit
stockpiles from February.
Ore mined from underground increased 48 per cent from 89,000 tons at 9.1 grams
per ton in the December quarter to 132,000 tons at a grade of 8.2 grams per ton
in the March quarter. Difficulties in opening -up new stopes due to poor
underground conditions at Waroonga`s Kim South continued in January and
February. However, by March consistent stope production resulted in record ore
tons being achieved and production from Waroonga`s Main Lode continued to
improve. Total capital and ore reserve development increased 36 per cent
compared with the December quarter.
Operating costs, including gold-in-process, decreased from A$31 million (R188
million) in the December quarter to A$29 million (R194 million) in the March
quarter. Mining costs increased by A$5 million (R48 million) due to higher
underground volumes, with a commensurate increase in ore production of 48 per
cent. This was offset by a reduction in gold-in-process charges, from A$14
million (R82 million) to A$6 million (R40 million) as a result of a reduction
in the draw-down of Songvang stockpiles which were replaced with underground
ore mined during the quarter. As expected, total cash costs increased from
A$470 per ounce (US$419 per ounce) to A$523 per ounce (US$473 per ounce). The
increase in total cash costs was attributable to the completion of processing
the Songvang high grade ore stockpile and its substitution with higher cost
Songvang low grade ore stockpiles midway through the quarter.
Operating profit increased from A$13 million (R76 million) for the December
quarter to A$21 million (R141 million) in the March quarter. This was due
primarily to the higher gold price received.
Capital expenditure for the March quarter was A$8 million (R56 million), which
was marginally lower than the December quarter. This was mainly due to lower
underground capital development.
Gold production for the June quarter is expected to be at similar levels when
compared with the March quarter. Total cash costs per ounce are expected to
increase by approximately 10 per cent due to the replacement of Songvang high
grade stockpiles depleted in February 2008, with higher cost Songvang low grade
stockpiles and the effect of this on a full quarter.
Quarter ended 31 March 2008 compared
with quarter ended 31 March 2007
Group attributable gold production decreased from 981,000 ounces for the
quarter ended March 2007 to 827,000 ounces in the March 2008 quarter.
At the South African operations gold production decreased from 657,000 to
519,800 ounces. Kloof`s production decrease d from 220,000 ounces to 175,500
ounces. Driefontein`s production decreased from 251,200 ounces to 209,900
ounces and Beatrix from 119,200 ounces to 81,700 ounces. The majority of these
decreases were due to the stoppages and reduced production emanating from the
power shortage in the March 2008 quarter. At South Deep production decreased
from 66,700 ounces to 52,600 ounces due to the power constraints and the
closure of the VCR section due to the intersection of the major fault.
At the international operations total gold production decreased from 388,800
ounces in March quarter 2007 to 370,500 ounces in March quarter 2008. In Ghana,
Tarkwa`s gold production decreased from 174,300 ounces to 165,100 due to a
reduction in high grade ore tonnages. At Damang, gold production increased from
48,500 ounces to 52,600 ounces due to an increase in ore from the high grade
Damang pit cutback. In Australia, St Ives` gold production decreased from
119,400 ounces to 103,900 ounces due to lower underground high grade volumes,
partly offset by increased surface tonnages at lower grades. At Agnew, gold
produced increased from 46,600 ounces to 49,000 ounces due to high volumes
mined from the high grade Kim mine.
Revenue increased by 23 per cent in rand terms from R4,955 million (US$687
million) to R6,109 million (US$820 million). The higher average gold price of
R220,612 per kilogram (US$921 per ounce) compared with R151,175 per kilogram
(US$652 per ounce) achieved in 200 7 more than offset the lower production. The
rand/US dollar exchange rate weakened 3 per cent from an average of R/US$7.21
to R/US$7.45 quarter on quarter.
Operating costs, including gold-in-process movements, increased from R3,109
million (US$431 million) to R3,543 million (US$476 million), an increase of
R434 million (US$45 million) or 14 per cent.
At the South African operations, operating costs increased by 4 per cent from
R2,047 million (US$284 million) in the quarter ended March 2007 to R2,126
million (US$285 million) in the quarter ended March 2008. This well below
inflation increase is due to the lower production reported this quarter because
of the power rationing experienced from late January 2008. Total cash costs
increased from R94,644 per kilogram (US$408 per ounce) to R125,181 per kilogram
(US$523 per ounce) an increase of 32 per cent due to the lower production and
the fixed nature of operating costs.
At the international operations net operating costs increased from R1,062
million (US$147 million) to R1,417 million (US$190 million). Total cash costs
increased by 32 per cent from US$379 per ounce to US$500 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 5 per cent decrease
in gold output from the international operations.
Operating profit increased from R1,846 million (US$256 million) to R2,566
million (US$344 million), with the benefit of the higher gold price partially
offset by the lower production and the increase in costs.
After accounting for taxation, sundry items and the gain on financial
instruments reported this quarter, net earnings increased from R370 million
(US$52 million) in the March 2007 quarter to R1,248 million (US$167 million) in
the March 2008 quarter.
Earnings excluding gains and losses on foreign exchange, financial instruments,
exceptional items and discontinued operations increased from R512 million
(US$71 million) in March quarter 2007 to R1,009 million (US$138 million) in the
March 2008 quarter.
Capital and development projects
Cerro Corona
During the March quarter, 2.71 million man hours were worked with four Lost
Time Accidents and eight Medically Treated Incidents, all involving
construction personnel. Management has installed several programmes, including
significant contractor cost penalties to reverse this adverse trend.
Project staffing levels have remained at over 3,000 per day throughout the
period, but are expected to drop in the June quarter as construction completion
is achieved. There were no reportable environmental incidents during the
period.
Final operational permitting activities advanced during the quarter which
included approval of the contractor`s EIA for storage, transport, and ship
loading of concentrate at the Port of Salaverry, Project EIA general revision,
as well as the mine Closure Plan.
As Cerro Corona prepares to transition from permitting and construction phases,
a plan for broader participation in district and regional issues is being
develop ed and implemented. Similarly, public interest and integration of
community/desires into Cerro Corona operational plans are being actively
undertaken. The initial steps involve a focused discussion into ways of
maximising positive operational impacts within the affected communities as well
as resolution of long standing societal deficiencies for the long term District
benefit as well as that of Peru.
Mining activities focused on generating construction material for the Las
Gordas tailing dam and in further oxide and waste mining to enable
sulphide ore mining in the June quarter. A total of 3.4 million tons were
mined and at the end of the March quarter, accumulated oxide ore in
stockpiles was 3.4 million tons with an average gold grade of 1.47 grams
per ton. Accumulated mixed ore in stockpile is 0.84 million tons with
average gold and copper grades of 1.35 grams per ton and 0.53 per cent,
respectively. This material represents seven weeks of plant production at
full capacity.
Cumulative construction progress through to the end of the March quarter
was 81.0 per cent. The Las Gordas Stage I Starter Dam embankment
construction productivity improved significantly due to changes
implemented in construction materials, placement methods and Tailings
Management Facility (TMF) organisational structure. A staged water filling
plan has been implemented which allows the water level in the TMF
reservoir to be increased at regular intervals as the embankment reaches
pre -determined elevation milestones. This is important to progressively
capture rainfall from the remainder of the current wet season.
Approximately 150,000 cubic metres of water is currently stored in the
reservoir and it is anticipated that an adequate supply of water (500,000
cubic metres) will be stored in the reservoir to support planned process
plant start -up and continued plant operations during the coming dry season
with little or no pumping from the mine dewatering wells. The TMF return
water system is now advancing well following a slow start; various
contractor changes were made to ensure progress. Tailing pipeline
construction is also advancing well with piping corridors being completed,
installation of difficult drop-pipe structures and HDPE piping systems
commenced. The quarterly Internal Geotechnical and Tailing Review
Board (IGTRB) review sessions were held and have provided valuable
input and recommendations from independent industry experts.
Several major project milestones were achieved during the quarter,
including:
Energisation of the 220kV power line and Cerro Corona Substation;
Mechanical completion of Crusher (pending minor punch list and unit
substation energisation);
Mechanical Completion of Concentrate Filtration and Storage Areas
(pending minor punch list and unit substation energisation);
Established camp operations on line power;
Initiated stage water storage behind TMF embankment;
Completion of detail Plant Operation and Commissioning Procedures;
Contracting of a Commissioning Manager and key commissioning
leads through a third party engineering firm;
Establishment of Project-Operational transition teams for all aspects of
Cerro Corona on a go forward basis.
Pre-commissioning activities have commenced on an area -by-area basis as
mechanical, piping and electrical equipment and systems are completed.
Commissioning activities will commence in late -April and the project is
expected to commence ore treatment in June 2008, with shipment of concentrates
in the September quarter. The greatest schedule risk is completion of the Recl
aim Water System installations.
Total cumulative capital expenditure through the end of the quarter reached
US$390 million which is US$10 million less than the project cash flow on the
basis of the revised project value of US$421 million (November 2007).
Cumulative project commitments reached
US$420 million. Project forecast cost
at completion increased during the period to
US$4 50 million, including
US$20
million for contractor claims and contingencies due to extensions in time for
completion of const ruction activities.
Exploration and corporate development
Greenfields Exploration
At the Sankarani joint venture project in south -western Mali, operated by
partner Glencar Mining plc (AIM: "GEX"), litho-geochemical sampling by means of
air core drilling has been completed on the Bokoro and Sanioumale A & B
targets. A high resolution airborne magnetics and radiometric survey was flown
over the three exploration licenses. With the completion of this programme,
Gold Fields has earned a 51 per cent interest in the joint venture.
At the 80 per cent owned Kisenge project in the southern DRC, the third phase
of drilling was completed at the Kajimba, Mpokoto, Lungenda, Weji and Katompe
targets. A reconnaissance stream sediment and soil sampling survey was
completed over a majority of the exploration licenses. The Kisenge Mining
Convention is subject to the country-wide review by the Ministry of Mines. The
joint venture partners have responded to all the questions raised in a
Notification Letter received 21 February 2008.
In Kyrgyzstan, Lero Gold Corp (TSX-V: "LER") has informed Gold Fields that it`s
portion of equity funding has been expended and that it now has a 3-month
option to joint venture the Talas Project. The possibility of a US$8 million
equity injection is under review, of which $5 million is pending as an
aggressive programme of additional induced-polarisation geophysics followed by
additional diamond drilling is planned at Talas.
At the Gobondery joint venture in New South Wales, where Gold Fields is
earning an 80 per cent stake from joint venture partner Clancy Exploration
Limited (ASX: "CLY"), initial diamond drilling was completed on two blind
porphyry targets and target definition work is in progress on eight other
priority target areas.
In South Australia at the Delamarian project, aircore drilling to sample the
basement regolith continued and initial target definition will be completed by
June 2008.
In Northern 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, results of
the airborne geophysics, soil geochemistry surveys and initial diamond drilling
completed to date have been very encouraging. Diamond drilling will be
accelerated as new targets are defined in the June quarter. Post quarter end an
additional 25.9 million shares in Conquest Mining Limited were purchased for A$9
million. Gold Fields has thus increased its holding from 25.8 million shares or
9.5 per cent to a total of 51.7 million shares or 19.1 per cent of the share
capital of the Company.
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 Piedra
Iman and Josefina targets and results are currently being compiled and
interpreted. Target identification field work consisting of mapping, sampling
and geophysical surveys is in progress on the Los Jengibres and Loma
Viejo Pedro epithermal targets.
In Peru at the Consolidada de Hualgayoc joint venture with Compania de
Minas Buenaventura SA (NYSE: "BVN"), scout drilling is in progress on the
Quijote target.
Near Mine Exploration
In Australia, Gold Fields is aggressively exploring at its Agnew and St Ives
operations. Ongoing drilling programmes at the Athena and Nelson`s Fleet
discoveries at St. Ives are continuing to deliver promising results.
In Ghana, the near-mine exploration team is being strengthened and will focus
on Damang and other promising targets in the general vicinity of the Tarkwa and
Damang operations.
Corporate
Mvela Resources and Gold Fields Agrees on 50 million shares should "flip-up"
Proceed
On 17 March 2008 Gold Fields Limited and Mvelaphanda Resources Limited
(Mvela) decided that Mvela will receive a fixed 50 million Gold Fields shares if
and when Mvela`s future stake of 15 per cent in GFI Mining South Africa
(Proprietary) Limited (GFIMSA) is exchanged at the instance of either Gold
Fields or Mvela, for shares in Gold Fields. GFIMSA is the vehicle that owns and
houses the South African assets of Gold Fields.
The exact number of shares, within the range of the floor and cap (45 and 55
million shares respectively), which Mvela would have received was highly
variable because of the volatility of the changes in the input parameters for a
Discounted Cash Flow valuation, and the complex nature of the formula, and
agreeing the number of shares now gives certainty on an equitable basis to both
parties.
Leadership changes at Gold Fields
On 31 March 2008, the Board of Gold Fields Limited announced that, after a
distinguished nine years with Gold Fields, the last six as Chief Executive
Officer, Ian Cockerill had decided to step down. He will be heading-up Anglo
American`s coal division.
Ian is succeeded by Nick Holland who has been the Chief Financial Officer of
Gold Fields since its inception in 1998. In a complementary move, Terence
Goodlace, Executive Vice President and Head of South African Operations, was
appointed to the new position of Chief Operating Officer, and as a member of
the Gold Fields Board. A new Chief Financial Officer will be recruited to
replace Nick. Paul Schmidt, Senior Manager Finance, will act as Chief Financial
Officer in the interim. Vishnu Pillay, currently Vice President and Head of
Operations at Driefontein has been appointed in Terence`s position as Executive
Vice President and Head of South African operations. Glenn Baldwin, Head of West
Africa and Australia and Juan Luis Kruger, Head of South American Operations
as well as Vishnu, will report to Terence Goodlace.
To fill the position vacated by Vishnu, Peter Turner, currently Vice
President and Head of Operations of Kloof Gold Mine has moved to
Driefontein Gold Mine in the same position. To fill Peter`s position at Kloof
Gold Mine, Rodney Hart, currently, Senior Manager: Operations at that
mine, is promoted to the position of Vice President and Head of Operations
of Kloof Gold Mine. Phillip Tobias was promoted to Vice President and
Head of Operations of Beatrix Gold Mine to fill the position of Phillip
Schoeman who assumed the position of Vice President of Technology at
Corporate office.
The Board also wishes to announce that, unrelated to Ian`s resignation, John
Munro, Executive Vice President of Corporate Development, has resigned to take
up the position of Chief Executive Officer of a new uranium company. John`s
executive responsibilities for Corporate Development are assumed by Jimmy
Dowsley, Senior Vice President for Business Development.
All of these changes are effective as from 1 May 2008.
Dividend
No interim dividend was declared at the end of the December 2007 quarter as a
result of the uncertainty pertaining to the supply of power to the South
African operations. As a result of the power supply returning to an average of
95 per cent and the gold price being maintained at about R220,000 per kilogram,
it has been decided to declare an interim dividend this quarter relating to the
six month period ended 31 December 2007. The final dividend declared at year
end will depend on the continued supply of power in the June quarter.
- interim dividend number 68: 65 SA cents per share
- last date to trade cum -dividend: Friday 23 May 2008
- sterling and US dollar conversion date: Monday 26 May 2008
- trading commences ex-dividend: Monday 26 May 2008
- record date: Friday 30 May 2008
- payment date: Monday 2 June 2008
Share certificates may not be dematerialised or rematerialised between Monday,
26 May 2008 and Friday, 30 May 2008, both dates inclusive.
Outlook
At the South African operations, subject to the sustainable supply of power,
and our ability to man the operations at the required level, production for the
June quarter is likely to be between 2 and 4 per cent higher than the March
quarter. Cash costs should be slightly lower with the higher production
partially offset by increases in power and commodities. At the international
operations gold production is forecast to be similar to the March quarter, with
costs slightly higher due to increases in power and diesel input costs and an
increased royalty charge at St Ives.
Basis of accounting
The unaudited results for the quarter have been prepared on the International
Financial Reporting Standards (IFRS) basis. The detailed financial, operational
and development results for the March 2008 quarter are submitted in this
report.
These consolidated quarterly statements are prepared in accordance with IAS 34,
Interim Financial Reporting. The accounting policies used in the preparation of
this report are consistent with those applied in the previous financial year
except for the adoption of applicable revised and/or new standards issued by
the International Accounting Standards Board.
N.J. Holland
Chief Executive Officer
9 May 2008
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand Quarter
March December March
2008 2007 2007
Revenue 6,109.2 5,429.7 4,955.2
Operating costs, net 3,543.3 3,392.4 3,109.3
- Operating costs 3,502.6 3,341.2 3,100.6
- Gold inventory change 40.7 51.2 8.7
Operating profit 2,565.9 2,037.3 1,845.9
Amortisation and depreciation 713.9 762.7 697.3
Net operating profit 1,852.0 1,274.6 1,148.6
Net interest paid (88.4) (92.2) (111.9)
Gain/(loss) on foreign exchange 38.4 (5.1) (379.7)
Gain/(loss) on financial instruments 262.3 (187.6) (35.2)
Other (32.3) (10.2) (25.8)
Exploration (57.5) (78.7) (75.6)
Profit before tax and exceptional items 1,974.5 900.8 520.4
Exceptional (loss)/gain (41.6) 1,416.6 192.0
Profit before taxation 1,932.9 2,317.4 712.4
Mining and income taxation 566.5 418.4 268.9
- Normal taxation 349.4 284.5 232.5
- Deferred taxation 217.1 133.9 36.4
Net profit from continued operations 1,366.4 1,899.0 443.5
Income from discontinued operations - 45.2 (6.8)
Profit on sale of Venezuelan assets - 74.2 -
Net profit 1,366.4 2,018.4 436.7
Attributable to:
- Ordinary shareholders 1,248.0 1,938.0 370.4
- Minority shareholders 118.4 80.4 66.3
Exceptional items:
Profit on sale of investments - 1,414.7 182.3
Profit on sale of assets 3.2 1.9 10.0
Driefontein 9 shaft closure costs (44.8) - -
Other - - (0.3)
Total exceptional items (41.6) 1,416.6 192.0
Taxation 18.7 (8.3) (49.2)
Net exceptional items after tax and
minorities (22.9) 1,408.3 142.8
Net earnings 1,248.0 1,938.0 370.4
Net earnings per share (cents) 191 297 60
Diluted earnings per share (cents) 178 277 57
Headline earnings 1,245.7 455.5 227.6
Headline earnings per share (cents) 191 70 37
Net earnings excluding gains and losses on
foreign exchange, 1,008.6 602.9 512.0
financial instruments, exceptional items
and discontinued operations
Net earnings per share excluding gains and
losses on foreign 155 93 83
exchange, financial instruments,
exceptional items and discontinued
operations (cents)
Gold sold - managed kg 27,692 31,848 32,778
Gold price received R/kg 220,612 170,488 151,175
Total cash costs R/kg 122,920 101,532 92,172
Nine months to
March March
20 08 2007
Revenue 16,557.1 14,366.8
Operating costs, net 10,237.6 8,596.0
- Operating costs 10,135.7 8,690.9
- Gold inventory change 101.9 (94.9)
Operating profit 6,319.5 5,770.8
Amortisation and depreciation 2,247.7 2,096.5
Net operating profit 4,071.8 3,674.3
Net interest paid (275.7) (121.8)
Gain/(loss) on foreign exchange 21.0 (119.0)
Gain/(loss) on financial instruments 83.6 (63.8)
Other (53.8) (126.3)
Exploration (220.8) (206.1)
Profit before tax and exceptional items 3,626.1 3,037.3
Exceptional (loss)/gain 1,404.3 208.5
Profit before taxation 5,030.4 3,245.8
Mining and income taxation 1,274.0 1,181.7
- Normal taxation 857.7 743.6
- Deferred taxation 416.3 438.1
Net profit from continued operations 3,756.4 2,064.1
Income from discontinued operations 37.0 (26.0)
Profit on sale of Venezuelan assets 74.2 -
Net profit 3,867.6 2,038.1
Attributable to:
- Ordinary shareholders 3,614.6 1,835.0
- Minority shareholders 253.0 203.1
Exceptional items:
Profit on sale of investments 1,414.7 187.4
Profit on sale of assets 34.4 21.1
Driefontein 9 shaft closure costs (44.8) -
Other - -
Total exceptional items 1,404.3 208.5
Taxation (0.8) (55.0)
Net exceptional items after tax and minorities 1,403.5 153.5
Net earnings 3,614.6 1,835.0
Net earnings per share (cents) 554 337
Diluted earnings per share (cents) 517 314
Headline earnings 2,111.7 1,681.5
Headline earnings per share (cents) 324 309
Net earnings excluding gains and losses on foreign
exchange, 2,019.2 1,810.0
financial instruments, exceptional items and
discontinued operations
Net earnings per share excluding gains and losses on
foreign 309 333
exchange, financial instruments, exceptional items
and discontinued
operations (cents)
Gold sold - managed kg 91,846 98,446
Gold price received R/kg 180,270 145,936
Total cash costs R/kg 106,902 84,987
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
United States Dollars Quarter
March December March
2008 2007 2007
Revenue 821.1 800.8 687.3
Operating costs, net 473.9 500.9 431. 2
- Operating costs 468.4 493.5 430.0
- Gold inventory change 5.5 7.4 1.2
Operating profit 347.2 299.9 256.1
Amortisation and depreciation 94.8 112.7 96.7
Net operating profit 252.4 187.2 159.4
Net interest paid (11.8) (13.6) (15.5)
Gain/(loss) on foreign exchange 5.5 (0.8) (52.7)
Gain/(loss) on financial instruments 37.6 (27.1) (4.9)
Other (4.5) (1.5) (3.4)
Exploration (7.5) (11.7) (10.5)
Profit before tax and exceptional items 271.7 132.5 72.4
Exceptional (loss)/gain (11.1) 204.5 26.5
Profit before taxation 260.6 337.0 98.9
Mining and income taxation 77.2 61.3 37.2
- Normal taxation 47.3 41.8 32.2
- Deferred taxation 29.9 19.5 5.0
Net profit from continued operations 183.4 275.7 61.7
Income from discontinued operations (0.1) 6.5 (0.9)
Profit on sale of Venezuelan assets (0.3) 10.7 -
Net profit 183.0 292.9 60.8
Attributable to:
- Ordinary shareholders 166.8 281.1 51.6
- Minority shareholders 16.2 11.8 9.2
Exceptional items:
Profit on sale of investments (5.1) 204.1 25.2
Profit on sale of assets 0.3 0.4 1.4
Driefontein 9 shaft closure costs (6.3) - -
Other - - (0.1)
Total exceptional items (11.1) 204.5 26 .5
Taxation 2.7 (1.2) (6.8)
Net exceptional items after tax and
minorities (8.4) 203.3 19.7
Net earnings 166.8 281.1 51.6
Net earnings per share (cents) 26 43 8
Diluted earnings per share (cents) 24 40 7
Headline earnings 175.5 67.1 31.9
Headline earnings per share (cents) 27 10 5
Net earnings excluding gains and losses on
foreign exchange, 138.2 88.4 71.0
financial instruments, exceptional items and
discontinued operations
Net earnings per share excluding gains and
losses on foreign 21 13 11
exchange, financial instruments, exceptional
items and discontinued
operations (cents)
South African rand/United States dollar
conversion rate 7.45 6.76 7.21
South African rand/Australian dollar
conversion rate 6.73 6.03 5.66
Gold sold - managed ozs (000) 890 1,024 1,054
Gold price received $/oz 921 784 652
Total cash costs $/oz 513 467 398
Nine months to
March March
2008 2007
Revenue 2,328.7 1,987.1
Operating costs, net 1,439.9 1,189.0
- Operating costs 1,425.6 1,202.1
- Gold inventory change 14.3 (13.1)
Operating profit 888.8 798.1
Amortisation and depreciation 316.1 290.0
Net operating profit 572.7 508.1
Net interest paid (38.8) (16.8)
Gain/(loss) on foreign exchange 3.0 (16.5)
Gain/(loss) on financial instruments 11.8 (8.8)
Other (7.6) (17.3)
Exploration (31.1) (28.5)
Profit before tax and exceptional items 510.0 420.2
Exceptional (loss)/gain 197.5 28.8
Profit before taxation 707.5 449.0
Mining and income taxation 179.2 163.4
- Normal taxation 120.6 102.8
- Deferred taxation 58.6 60.6
Net profit from continued operations 528.3 285.6
Income from discontinued operations 5.2 (3.6)
Profit on sale of Venezuelan assets 10.4 -
Net profit 543.9 282.0
Attributable to:
- Ordinary shareholders 508.3 253.9
- Minority shareholders 35.6 28.1
Exceptional items:
Profit on sale of investments 199.0 25.9
Profit on sale of assets 4.8 2.9
Driefontein 9 shaft closure costs (6.3) -
Other - -
Total exceptional items 197.5 28.8
Taxation (0.1) (7.6)
Net exceptional items after tax and minorities 197.4 21.2
Net earnings 508.3 253.9
Net earnings per share (cents) 78 47
Diluted earnings per share (cents) 73 43
Headline earnings 300.5 232.7
Headline earnings per share (cents) 46 43
Net earnings excluding gains and losses on foreign
exchange, 284.0 250.3
financial instruments, exceptional items and
discontinued operations
Net earnings per share excluding gains and losses on
foreign 44 46
exchange, financial instruments, exceptional items and
discontinued
operations (cents)
South African rand/United States dollar conversion rate 7.11 7.23
South African rand/Australian dollar conversion rate 6.26 5.52
Gold sold - managed ozs (000) 2,953 3,165
Gold price received $/oz 789 628
Total cash costs $/oz 468 366
Balance sheet
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand
March June
2008 2007
Property, plant and equipment 43,173.3 37,312.8
Goodwill 4,458.9 4,458.9
Non-current assets 672.6 627.7
Investments 5,272.2 2,272.4
Discontinued operations - 3,352.3
Current assets 5,996.5 5,877.0
- Other current assets 4,052.4 3,566.9
- Cash and deposits 1,944.1 2,310.1
Total assets 59,573.5 53,901.1
Shareholders` equity 41,966.8 37,106.3
Deferred taxation 5,299.4 4,651.4
Long -term loans 5,951.0 6,170.5
Environmental rehabilitation provisions 1,545.1 1,380.5
Post -retirement health care provisions 21.0 21.0
Current liabilities 4,790.2 4,571.4
- Other current liabilities 4,106.0 3,852.8
- Current portion of long -term loans 684.2 718.6
Total equity and liabilities 59,573.5 53,901.1
South African rand/US dollar conversion rate
South African rand/Australian dollar conversion rate
United States Dollars
March June
2008 2007
Property, plant and equipment 5,389.9 5,218.6
Goodwill 556.7 623.6
Non-current assets 84.0 87.8
Investments 658.2 317.8
Discontinued operations - 468.9
Current assets 748.6 822.0
- Other current assets 505.9 498.9
- Cash and deposits 242.7 323.1
Total assets 7,437.4 7,538.7
Shareholders` equity 5,239.3 5,189.7
Deferred taxation 661.6 650.5
Long -term loans 742.9 863.0
Environmental rehabilitation provisions 192.9 193.1
Post -retirement health care provisions 2.6 2.9
Current liabilities 598.1 639.5
- Other current liabilities 512.7 539.0
- Current portion of long -term loans 85.4 100.5
Total equity and liabilities 7,437.4 7,538.7
South African rand/US dollar conversion rate 8.01 7.15
South African rand/Australian dollar conversion rate 7.38 6.06
Condensed changes in equity
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand
March March
2008 2007
Balance at the beginning of the financial year 37,106.3 19,851.5
Issue of share capital 0.4 77.8
Increase in share premium 59.8 18,196.3
Mark to market valuation of listed investments 729.3 184.4
Dividends paid (619.9) (1,130.9)
Increase in share -based payment reserve 77.9 60.0
Profit attributable to ordinary shareholders 3 ,614.6 1,835.0
Profit attributable to minority shareholders 253.0 203.1
Decrease in minority interests (441.2) (100.6)
Loss on transacting with minorities (74.7) -
Currency translation adjustment and other 1,715.4 34.7
Reserves released on sale of Venezuelan assets (454.1) -
Balance as at the end of March 41,966.8 39,211.3
United States Dollars
March March
2008 2007
Balance at the beginning of the financial year 5,189.7 2,671.8
Issue of share capital 0.1 10.8
Increase in share premium 8.4 2,527.3
Mark to market valuation of listed investments 102.6 25.6
Dividends paid (87.2) (157.1)
Increase in share -based payment reserve 11.0 8.3
Profit attributable to ordinary shareholders 508.3 253.9
Profit attributable to minority shareholders 35.6 28.1
Decrease in minority interests (62.1) (11.6)
Loss on transacting with minorities (10.5) -
Currency translation adjustment and other (392.7) 88.9
Reserves released on sale of Venezuelan assets (63.9) -
Balance as at the end of March 5,239.3 5,446.0
Reconciliation of headline earnings with net earnings
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand
March December March
2008 2007 2007
Net earnings 1,248.0 1,938.0 370.4
Profit on sale of investments - (1,414.7) (182.3)
Taxation effect of profit on sale of
investments - - 47.3
Profit on sale of assets (3.2) (1.9) (10.0)
Taxation effect of profit on sale of assets 0.9 8.3 1.9
Profit on sale of Venezuelan assets - (74.2) -
Other exceptional items - - 0.3
Headline earnings 1,245.7 455.5 227.6
Headline earnings per share - cents 191 70 37
Based on headline earnings as given above
divided by 652,691,549 for March 2008 (December
2007- 652,412,191 and March 2007 - 620,105,799) being the
weighted average number of ordinary shares in issue.
United States Dollars
March December March
2008 2007 2007
Net earnings 166.8 281.1 51.6
Profit on sale of investments - (204.1) (25.2)
Taxation effect of profit on sale of
investments - - 6.5
Profit on sale of assets (0.3) (0.4) (1.4)
Taxation effect of profit on sale of assets 0 .1 1.2 0.3
Profit on sale of Venezuelan assets - (10.7) -
Other exceptional items 8.9 - 0.1
Headline earnings 175.5 67.1 31.9
Headline earnings per share - cents 27 10 5
Based on headline earnings as given above
divided by 652,691,549 for March 2008 (December 2007-
652,412,191 and March 2007 - 620,105,799) 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
March December March
2008 2007 2007
Cash flows from operating activities 3,038.5 1,147.8 (2,615.1)
Profit before tax and except ional
items 1,974.5 900.8 520.4
Exceptional items (41.6) 1,416.6 192.0
Amortisation and depreciation 713.9 762.7 697.3
Change in working capital 794.2 (570.6) (131.9)
Taxation paid (238.0 ) (129.7) (177.6)
Settlement of Western Areas hedge - - (3,893.8)
Other non -cash items (164.5) (1,352.1) 185.2
Discontinued operations - 120.1 (6.7)
Dividends paid - - (585.5)
Ordinary shareholders - - (585.5)
Minority shareholders in subsidiaries - - -
Cash flows from investing activities (2,355.3) (222.2) (1,419.8)
Capital expenditure - additions (2,085.7) (2,475.5) (1,339.1)
Capital expenditure - proceeds on
disposal 3.1 1.8 11.0
Sale/(purchase) of subsidiaries - 1,042.1 (30.9)
Purchase of investments (258.1) (9.6) (349.6)
Proceeds on the disposal of
investments 1.9 32.5 305.7
Environmental and post -retirement
health care payments (16.5) (6.5) (14.6)
Discontinued operations - 1,193.0 (2.3)
Cash flows from financing activities (213.7) (1,068.5) 5,500.4
Loans received 1,535.3 727.4 4,439.9
Loans repaid (1,788.3) (1,808.2) (9,035.6)
Minority shareholders loans repaid - - -
Shares issued 39.3 12.3 10,096.1
Net cash inflow/(outflow) 469.5 (142.9) 880.0
Translation adjustment 154.0 (6.4) 35.3
Cash at beginning of period 1,320.6 1,469.9 1,412.5
Cash at end of period 1,944.1 1,320.6 2,327.8
Nine months to
March March
2008 2007
Cash flows from operating activities 5,171.6 375.4
Profit before tax and except ional items 3,626.1 3,037.3
Exceptional items 1,404.3 208.5
Amortisation and depreciation 2,247.7 2,096.5
Change in working capital (0.2) (442.8)
Taxation paid (728.8) (578.0)
Settlement of Western Areas hedge - (3,893.8)
Other non -cash items (1,503.9) (84.5)
Discontinued operations 126.4 32.2
Dividends paid (619.9) (1,141.4)
Ordinary shareholders (619.9) (1,130.9)
Minority shareholders in subsidiaries - (10.5)
Cash flows from investing activities (4,510.3) (12,862.8)
Capital expenditure - additions (6,489.1) (3,773.5)
Capital expenditure - proceeds on disposal 35.7 22.3
Sale/(purchase) of subsidiaries 1,042.1 (8,707.7)
Purchase of investments (270.1) (548.5)
Proceeds on the disposal of investments 34.4 314.8
Environmental and post -retirement health care
payments (27.9) (38.3)
Discontinued operations 1,164.6 (131.9)
Cash flows from financing activities (538.0) 14,347.9
Loans received 3,171.3 13,497.8
Loans repaid (3,769.5) (9,191.2)
Minority shareholders loans repaid - (90.1)
Shares issued 60.2 10,131.4
Net cash inflow/(outflow) (496.6) 719.1
Translation adjustment 130.6 (8.8)
Cash at beginning of period 2,310.1 1,617.5
Cash at end of period 1,944.1 2,327.8
United States Dollars
Quarter
March December March
2008 2007 2007
Cash flows from operating activities 407.9 175.1 (358.9)
Profit before tax and exceptional items 271.7 132.5 72.4
Exceptional items (11.1) 204.5 26.5
Amortisation and depreciation 94.8 112.7 96.7
Change in working capital 114.6 (83.1) (18.2)
Taxation paid (43.5) (13.7) (26.6)
Settlement of Western Areas hedge - - (534.6)
Other non -cash items (18.2) (195.1) 25.6
Discontinued operations (0.4) 17.3 (0.7)
Dividends paid - - (81.4)
Ordinary shareholders - - (81.4)
Minority shareholders in subsidiaries - - -
Cash flows from investing activities (323.6) (38.6) (198.7)
Capital expenditure - additions (277.3) (363.9) (185.7)
Capital expenditure - proceeds on
disposal 0.3 0.4 1.5
Sale/(purchase) of subsidiaries (3.8) 150.4 (5.9)
Purchase of investments (36.3) (1.4) (48.4)
Proceeds on the disposal of investments 0.1 4.7 42.2
Environmental and post -retirement
health care payments (2.3) (0.9) (2.0)
Discontinued operations (4.3) 172.1 (0.4)
Cash flows from financing activities (28.9) (151.6) 756.0
Loans received 209.9 108.1 609.4
Loans repaid (244.3) (261.5) (1,249.8)
Minority shareholders loans repaid - - -
Shares issued 5.5 1.8 1,396.4
Net cash inflow/(outflow) 55.4 (15.1) 117.0
Translation adjustment (1.4) (6.2) 3.9
Cash at beginning of period 188.7 210.0 202.4
Cash at end of period 242.7 188.7 323.3
Nine months to
March March
2008 2007
Cash flows from operating activities 714.1 57.6
Profit before tax and exceptional items 510.0 420.2
Exceptional items 197.5 28.8
Amortisation and depreciation 316.1 290.0
Change in working capital - (61.2)
Taxation paid (115.8) (78.3)
Settlement of Western Areas hedge - (534.6)
Other non -cash items (211.5) (11.7)
Discontinued operations 17.8 4.4
Dividends paid (88.6) (159.7)
Ordinary shareholders (88.6) (158.2)
Minority shareholders in subsidiaries - (1.5)
Cash flows from investing activities (634.4) (1,779.2)
Capital expenditure - additions (912.7) (521.2)
Capital expenditure - proceeds on disposal 5.0 3.1
Sale/(purchase) of subsidiaries 146.6 (1,204.4)
Purchase of investments (38.0) (75.9)
Proceeds on the disposal of investments 4.8 43.5
Environmental and post -retirement health care
payments (3.9) (5.3)
Discontinued operations 163.8 (19.0)
Cash flows from financing activities (75.7) 1,993.6
Loans received 446.0 1,875.1
Loans repaid (530.2) (1,271.3)
Minority shareholders loans repaid - (11.5)
Shares issued 8.5 1,401.3
Net cash inflow/(outflow) (84.6) 112.3
Translation adjustment 4.2 (6.7)
Cash at beginning of period 323.1 217.7
Cash at end of period 242.7 323.3
Hedging / Derivatives
The Group`s policy is to remain unhedged to the gold price. However, hedges are
sometimes undertaken on a project specific basis as follows:
to protect cash flows at times of significant expenditure,
for specific debt servicing requirements, and
to safeguard the viability of higher cost operations.
Gold Fields may from time to time establish currency financial instruments to
protect underlying cash flows.
Gold Fields has various currency financial instruments - those remaining are
described in the schedule.
Position at end of March 2008
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 2007 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.
On 31 December 2007 a further repayment of US$172 million was made against the
loan which resulted in an early drawdown of the same amount under the forward
cover. On 6 March 2008 the balance of US$318 million was extended to 6 June
2008 at a rate of R7.9752, based on a spot of R7.8052. 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.
At the end of March 2008 the mark to market value of the US$318.0 million
forward cover was positive by R54.7 million (US$6.8 million). The quarter on
quarter marked to market movement was positive R271.4 million of which R309.4
million was offset against the R309.4 million foreign exchange loss on the
revaluation of the underlying loan being hedged. The balance of R38.0 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 per cent 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. On 31 January 2008 the forward cover of
US$40 million was extended to 30 April 2008 at a rate of R7.3101 based on a
spot of R7.1650. For accounting purposes this forward cover has been designated
as a hedging instrument and the valuation thereof is included in shareholder
equity.
On 4 October 2007 US dollars/rand forward cover of US$50 million was purchased
to hedge future investments in Orogen, a 100 per cent owned subsidiary. The
forward cover rate was 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. On 22
January 2008 the forward cover was extended to 22 April 2008 at a rate of
R7.1543 based on spot of R7.0200. For accounting purposes this forward cover
has been designated as a hedging instrument and the valuation thereof is
included in shareholder equity.
In January 2008, the Board approved the funding of the balance of the Cerro
Corona Capital Project from available offshore facilities. As a result of this
decision, the forward cover of US$40 million and US$50 million was cancelled
for the respective dates of 30 April 2008 and 22 April 2008. For accounting
purposes, a cash inflow of R82.9 million was accounted for in the March quarter
end.
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 marked 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 marked to market value at the end of December 2007
was positive by US$0.6million.
At the March 2008 quarter end, no Diesel Hedges were in place.
Amended Mvela Subscription and Exchange Agreement Election
Gold Fields, Mvela Gold, Mvela Resources and GFIMSA entered into an agreement
on 17 March 2008 to provide that the number of Gold Fields shares that Mvela Re
sources will acquire, should it elect to exchange it`s equity interest in
GFIMSA, shall be 50 million. The previous Collar agreement falls away. The
floor and cap derivative is therefore derecognised. The marked to market
valuation of the floor and cap derivative was a negative of R135 million at the
end of the December quarter. The 50 million shares are now accounted for as an
equity instrument and not a standalone derivative.
Total cash costs
Gold Industry Standards Basis
Figures are in millions unless otherwise stated
Total Mine South African Operations
Operations Total Driefontein Kloof
Operating costs (1)
March 2008 3,502.6 2,126.3 723.3 646.5
December 2007 3,341.2 2,173.5 744.2 688.7
Financial year to date 10,135.7 6,413.8 2,191.0 1,995.8
Gold-in-process and
inventory change*
March 2008 16.5 - - -
December 2007 5.7 - - -
Financial year to date 18.9 - - -
Less:
Rehabilitation costs
March 2008 14.6 10.6 4.4 3.3
December 2007 14.8 10.7 4.4 3.3
Financial year to date 43.9 31.8 13.2 9.9
Production taxes
March 2008 10.3 10.3 4.1 2.8
December 2007 10.4 10.4 4.2 2.7
Financial year to date 29.7 29.7 11.2 8.2
General and admin
March 2008 153.6 91.9 34.1 29.1
December 2007 144.3 95.7 36.5 31.9
Financial year to date 428.1 270.8 100.9 86.9
Exploration costs
March 2008 17.8 - - -
December 2007 9.4 - - -
Financial year to date 36.3 - - -
Cash operating costs
March 2008 3,322.8 2,013.5 680.7 611.3
December 2007 3,168.0 2,056.7 699.1 650.8
Financial year to date 9,616.6 6,081.5 2,065.7 1,890.8
Plus:
Production taxes
March 2008 10. 3 10.3 4.1 2.8
December 2007 10.4 10.4 4.2 2.7
Financial year to date 29.7 29.7 11.2 8.2
Royalties
March 2008 70.8 - - -
December 2007 55.2 - - -
Financial year to date 172.2 - - -
TOTAL CASH COSTS (2)
March 2008 3,403.9 2,023.8 684.8 614.1
December 2007 3,233.6 2,067.1 703.3 653.5
Financial year to date 9,818.5 6,111.2 2,076.9 1,899.0
Plus:
Amortisation*
March 2008 689.2 375.5 118.0 127.4
December 2007 775.1 462.6 141.0 160.4
Financial year to date 2,213.7 1,274.6 403.9 446.9
Rehabilitation
March 2008 14.6 10.6 4.4 3.3
December 2007 14.8 10.7 4.4 3.3
Financial year to date 43.9 31.8 13.2 9.9
TOTAL PRODUCTION
COSTS(3)
March 2008 4,107.7 2,409.9 807.2 744.8
December 2007 4,023.5 2,540.4 848.7 817.2
Financial year to date 12,076.1 7,417.6 2,494.0 2,355.8
Gold sold
- thousand ounces
March 2008 890.3 519.8 209.9 175.5
December 2007 1,023.9 656.9 239.6 230.8
Financial year to date 2,952.9 1,865.9 709.9 641.6
TOTAL CASH COSTS
- US$/oz
March 2008 513 523 438 470
December 2007 467 465 434 419
Financial year to date 468 461 412 416
TOTAL CASH COSTS
- R/kg
March 2008 122,920 125,181 104,870 112,514
December 2007 101,532 101,170 94,390 91,029
Financial year to date 106 902 105,302 94,067 95,159
TOTAL PRODUCTION
COSTS
March 2008 619 622 516 570
December 2007 581 572 524 524
Financial year to date
- US$/oz 575 559 494 516
South African Operations
South
Beatrix Deep Total
Operating costs (1)
March 2008 429.4 327.1 1,376.3
December 2007 420.2 320.4 1,167.7
Financial year to date 1,265.1 961.9 3,721.9
Gold-in-process and
inventory change*
March 2008 - - 16.5
December 2007 - - 5.7
Financial year to date - - 18.9
Less:
Rehabilitation costs
March 2008 2.2 0.7 4.0
December 2007 2.3 0.7 4.1
Financial year to date 6.6 2.1 12.1
Production taxes
March 2008 1.9 1.5 -
December 2007 2.1 1.4 -
Financial year to date 5.9 4.4 -
General and admin
March 2008 20.3 8.4 61.7
December 2007 18.4 8.9 48.6
Financial year to date 57.7 25.3 157.3
Exploration costs
March 2008 - - 17.8
December 2007 - - 9.4
Financial year to date - - 36.3
Cash operating costs
March 2008 405.0 316.5 1,309.3
December 2007 397.4 309.4 1,111.3
Financial year to date 1,194.9 930.1 3,535.1
Plus:
Production taxes
March 2008 1.9 1.5 -
December 2007 2.1 1.4 -
Financial year to date 5.9 4.4 -
Royalties
March 2008 - - 70.8
December 2007 - - 55.2
Financial year to date - - 172.2
TOTAL CASH COSTS (2)
March 2008 406.9 318.0 1,380.1
December 2007 399.5 310.8 1,166.5
Financial year to date 1,200.8 934.5 3,707.3
Plus:
Amortisation*
March 2008 63.0 67.1 313.7
December 2007 76.0 85.2 312.5
Financial year to date 202.9 220.9 939.1
Rehabilitation
March 2008 2.2 0.7 4.0
December 2007 2.3 0.7 4.1
Financial year to date 6.6 2.1 12.1
TOTAL PRODUCTION
COSTS(3)
March 2008 472.1 385.8 1,697.8
December 2007 477.8 396.7 1,483.1
Financial year to date 1,410.3 1,157.5 4,658.5
Gold sold
- thousand ounces
March 2008 81.7 52.6 370.5
December 2007 118.9 67.6 367.0
Financial year to date 319.8 194.6 1,087.0
TOTAL CASH COSTS
- US$/oz
March 2008 668 811 500
December 2007 497 680 470
Financial year to date 528 675 480
TOTAL CASH COSTS
- R/kg
March 2008 160,071 194,258 119,748
December 2007 108,031 147,719 102,181
Financial year to date 120,720 154,386 109,648
TOTAL PRODUCTION
COSTS
March 2008 775 984 615
December 2007 594 868 598
Financial year to date
- US$/oz 620 837 603
International Operations
Ghana Australia #
Tarkwa Damang St Ives Agnew
Operating costs (1)
March 2008 540.3 230.5 451.4 154.1
December 2007 465.8 200.9 394.6 106.4
Financial year to date 1,460.3 603.2 1,248.5 409.9
Gold-in-process and
inventory change*
March 2008 (0.8) (12.8) 15.2 14.9
December 2007 (9.4) (17.6) 0.3 32.4
Financial year to date (12.3) (47.0) 23.6 54.6
Less:
Rehabilitation costs
March 2008 1.2 - 2.3 0.5
December 2007 1.1 - 2.4 0.6
Financial year to date 3.5 - 6.9 1.7
Production taxes
March 2008 - - - -
December 2007 - - - -
Financial year to date - - - -
General and admin
March 2008 36.0 5.4 16.1 4.2
December 2007 26.7 3.8 13.3 4.8
Financial year to date 85.3 13.5 44.0 14.5
Exploration costs
March 2008 - 9.4 7.5 0.9
December 2007 - 2.0 6.8 0.6
Financial year to date - 14.2 19.9 2.2
Cash operating costs
March 2008 502.3 202.9 440.7 163.4
December 2007 428.6 177.5 372.4 132.8
Financial year to date 1,359.2 528.5 1,201.3 446.1
Plus:
Production taxes
March 2008 - - - -
December 2007 - - - -
Financial year to date - - - -
Royalties
March 2008 33.4 11.1 17.2 9.1
December 2007 26.1 7.4 15.1 6.6
Financial year to date 81.1 24.9 44.7 21.5
TOTAL CASH COSTS (2)
March 2008 535.7 214.0 457.9 172.5
December 2007 454.7 184.9 387.5 139.4
Financial year to date 1,440.3 553.4 1,246.0 467.6
Plus:
Amortisation*
March 2008 81.2 25.9 206.6
December 2007 72.7 20.3 219.5
Financial year to date 228.6 60.3 650.2
Rehabilitation
March 2008 1.2 - 2.8
December 2007 1.1 - 3.0
Financial year to date 3.5 - 8.6
TOTAL PRODUCTION
COSTS(3)
March 2008 618.1 239.9 839.8
December 2007 528.5 205.2 749.4
Financial year to date 1,672.4 613.7 2,372.4
Gold sold
- thousand ounces
March 2008 165.1 52.6 103.9 49.0
December 2007 162.7 45.2 110.0 49.2
Financial year to date 477.4 144.2 316.2 149.1
TOTAL CASH COSTS
- US$/oz
March 2008 436 546 592 473
December 2007 413 605 521 419
Financial year to date 424 540 554 441
TOTAL CASH COSTS
- R/kg
March 2008 104,323 130,887 141,721 113,189
December 2007 89,844 131,508 113,304 91,171
Financial year to date 96,990 123,362 126,678 100,798
TOTAL PRODUCTION COSTS
March 2008 503 613 737
December 2007 480 672 697
Financial year to date
- US$/oz 493 599 717
Discontinued
Operations##
Venezuela
Choco 10
Operating costs (1)
March 2008 -
December 2007 92.0
Financial year to date 191.3
Gold-in-process and
inventory change*
March 2008 -
December 2007 22.1
Financial year to date 8.6
Less:
Rehabilitation costs
March 2008 -
December 2007 -
Financial year to date -
Production taxes
March 2008 -
December 2007 -
Financial year to date -
General and admin
March 2008 -
December 2007 9.2
Financial year to date 30.0
Exploration costs
March 2008 -
December 2007 -
Financial year to date -
Cash operating costs
March 2008 -
December 2007 104.9
Financial year to date 169.9
Plus:
Production taxes
March 2008 -
December 2007 -
Financial year to date -
Royalties
March 2008 -
December 2007 3.4
Financial year to date 6.0
TOTAL CASH COSTS (2)
March 2008 -
December 2007 108.3
Financial year to date 175.9
Plus:
Amortisation*
March 2008 -
December 2007 5.6
Financial year to date 14.8
Rehabilitation
March 2008 -
December 2007 -
Financial year to date -
TOTAL PRODUCTION
COSTS(3)
March 2008 -
December 2007 113.9
Financial year to date 190.7
Gold sold
- thousand ounces
March 2008 -
December 2007 19.3
Financial year to date 33.2
TOTAL CASH COSTS
- US$/oz
March 2008 -
December 2007 830
Financial year to date 745
TOTAL CASH COSTS
- R/kg
March 2008 -
December 2007 180,500
Financial year to date 170,281
TOTAL PRODUCTION COSTS
March 2008 -
December 2007 873
Financial year to date
- US$/oz 807
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 = R7.45 and US$1 = R6.76 for the March 2008 and
December 2007 quarters respectively.
Operating and financial results
South African Operations
South African Rand Total Mine
Operations Total Driefontein
Operating Results
Ore milled/treated (000 tons)
March 2008 12,376 3,166 1,426
December 2007 12,630 3,767 1,478
Financial year to date 37,356 10,855 4,436
Yield (grams per ton)
March 2008 2.2 5.1 4.6
December 2007 2.5 5.4 5.0
Financial year to date 2.5 5.4 5.0
Gold produced (kilograms)
March 2008 27,692 16,167 6,530
December 2007 31,682 20,432 7,451
Financial year to date 91,846 58,035 22,079
Gold sold
March 2008 27,692 16,167 6,530
December 2007 31,848 20,432 7,451
Financial year to date 91,846 58,035 22,079
Gold price received (Rand per
kilogram)
March 2008 220,612 222,657 223,400
December 2007 170,488 169,846 170,031
Financial year to date 180,270 179,047 180,058
Total cash costs (Rand per kilogram)
March 2008 122,920 125,181 104,870
December 2007 101,532 101,170 94,390
Financial year to date 106,902 105,302 94,067
Total production costs (Rand per
kilogram)
March 2008 148,339 149,063 123,614
December 2007 126,361 124,384 113,904
Financial year to date 131,483 127,813 112,958
Operating costs (Rand per ton)
March 2008 283 672 507
December 2007 265 577 504
Financial year to date 271 591 494
Financial Results (Rand million)
Revenue
March 2008 6,109.2 3,599.7 1,458.8
December 2007 5,429.7 3,470.3 1,266.9
Financial year to date 16,557.1 10,391.0 3,975.5
Operating costs, net
March 2008 3,543.3 2,126.3 723.3
December 2007 3,392.4 2,173.5 744.2
Financial year to date 10,237.6 6,413.8 2,191.0
- Operating costs
March 2008 3,502.6 2,126.3 723.3
December 2007 3,341.2 2,173.5 744.2
Financial year to date 10,135.7 6,413.8 2,191.0
- Gold inventory change
March 2008 40.7 - -
December 2007 51.2 - -
Financial year to date 101.9 - -
Operating profit
March 2008 2,565.9 1,473.4 735.5
December 2007 2,037.3 1,296.8 522.7
Financial year to date 6,319.5 3,977.2 1,784.5
Amortisation of mining assets
March 2008 665.0 375.5 118.0
December 2007 729.6 462.6 141.0
Financial year to date 2,130.7 1,274.6 403.9
Net operating profit
March 2008 1,900.9 1,097.9 617.5
December 2007 1,307.7 834.2 381.7
Financial year to date 4,188.8 2,702.6 1,380.6
Other income/(expense)
March 2008 (107.6) (132.2) (44.1)
December 2007 1.0 (35.9) (17.5)
Financial year to date (134.7) (221.4) (81.2)
Profit before taxation
March 2008 1,793.3 965.7 573.4
December 2007 1,308.7 798.3 364.2
Financial year to date 4,054.1 2,481.2 1,299.4
Mining and income taxation
March 2008 580.0 312.9 182.3
December 2007 439.2 281.2 127.1
Financial year to date 1,354.7 859.2 448.8
- Normal taxation
March 2008 320.0 217.5 135.4
December 2007 259.7 174.7 87.1
Financial year to date 798.6 549.7 320.1
- Deferred taxation
March 2008 260.0 95.4 46.9
December 2007 179.5 106.5 40.0
Financial year to date 556.1 309.5 128.7
Profit before exceptional items
March 2008 1.213.3 652.8 391.1
December 2007 869.5 517.1 237.1
Financial year to date 2,699.4 1,622.0 850.6
Exceptional items
March 2008 (41.5) (41.9) (44.7)
December 2007 1.9 1.9 -
Financial year to date (10.3) (10.9) (23.0)
Net profit
March 2008 1,171.8 610.9 346.4
December 2007 871.4 519.0 237.1
Financial year to date 2,689.1 1,611.1 827.6
Net profit excluding gains and
losses on foreign exchange, financial
instruments and exceptional items
March 2008 1,202.6 636.3 374.2
December 2007 858.6 517.9 237.1
Financial year to date 2,698.5 1,624.6 841.9
Capital expenditure
March 2008 1,492.5 784.5 226.9
December 2007 1,435.4 838.5 267.3
Financial year to date 4,215.8 2,362.8 713.5
Planned for next six months to
September 2008 3,954.2 1,965.1 540.4
South African Operations
Kloof Beatrix South Deep
Operating Results
Ore milled/treated (000 tons)
March 2008 808 656 276
December 2007 1,008 868 413
Financial year to date 2,810 2,437 1,172
Yield (grams per ton)
March 2008 6.8 3.9 5.9
December 2007 7.1 4.3 5.1
Financial year to date 7.1 4.1 5.2
Gold produced (kilograms)
March 2008 5,458 2,542 1,637
December 2007 7,179 3,698 2,104
Financial year to date 19,956 9,947 6,053
Gold sold
March 2008 5,458 2,542 1,637
December 2007 7,179 3,698 2,104
Financial year to date 19,956 9,947 6,053
Gold price received (Rand per kilogram)
March 2008 220,136 226,515 222,114
December 2007 169,508 170,254 169,629
Financial year to date 178,007 179,310 178,358
Total cash costs (Rand per kilogram)
March 2008 112,514 160,071 194,258
December 2007 91,029 108,031 147,719
Financial year to date 95,159 120,720 154,386
Total production costs (Rand per
kilogram)
March 2008 136,460 185,720 235,675
December 2007 113,832 129,205 188,546
Financial year to date 118,050 141,781 191,227
Operating costs (Rand per ton)
March 2008 800 655 1,185
December 2007 683 484 776
Financial year to date 710 519 821
Financial Results (Rand million)
Revenue
March 2008 1,201.5 575.8 363.6
December 2007 1,216.9 629.6 356.9
Financial year to date 3,552.3 1,783.6 1,079.6
Operating costs, net
March 2008 646.5 429.4 327.1
December 2007 688.7 420.2 320.4
Financial year to date 1,995.8 1,265.1 961.9
- Operating costs
March 2008 646.5 429.4 327.1
December 2007 688.7 420.2 320.4
Financial year to date 1,995.8 1,265.1 961.9
- Gold inventory change
March 2008 - - -
December 2007 - - -
Financial year to date - - -
Operating profit
March 2008 555.0 146.4 36.5
December 2007 528.2 209.4 36.5
Financial year to date 1,556.5 518.5 117.7
Amortisation of mining assets
March 2008 127.4 63.0 67.1
December 2007 160.4 76.0 85.2
Financial year to date 446.9 202.9 220.9
Net operating profit
March 2008 427.6 83.4 (30.6)
December 2007 367.8 133.4 (48.7)
Financial year to date 1,109.6 315.6 (103.2)
Other income/(expense)
March 2008 (47.0) (37.2) (3.9)
December 2007 (9.6) (7.7) (1.1)
Financial year to date (68.1) (55.9) (16.2)
Profit before taxation
March 2008 380.6 46.2 (34.5)
December 2007 358.2 125.7 (49.8)
Financial year to date 1,041.5 259.7 (119.4)
Mining and income taxation
March 2008 126.8 17.5 (13.7)
December 2007 126.1 47.6 (19.6)
Financial year to date 356.9 98.2 (44.7)
- Normal taxation
March 2008 81.9 0.2 -
December 2007 87.3 0.3 -
Financial year to date 228.8 0.8 -
- Deferred taxation
March 2008 44.9 17.3 (13.7)
December 2007 38.8 47.3 (19.6)
Financial year to date 128.1 97.4 (44.7)
Profit before exceptional items
March 2008 253.8 28.7 (20.8)
December 2007 232.1 78.1 (30.2)
Financial year to date 684.6 161.5 (74.7)
Exceptional items
March 2008 - 2.7 0.1
December 2007 0.5 0.5 0.9
Financial year to date 0.9 3.5 7.7
Net profit
March 2008 253.8 31.4 (20.7)
December 2007 232.6 78.6 (29.3)
Financial year to date 685.5 165.0 (67.0)
Net profit excluding gains and losses on
foreign exchange, financial instruments and
exceptional items
March 2008 253.7 29.7 (21.3)
December 2007 232.3 78.3 (29.3)
Financial year to date 684.9 162.8 (65.0)
Capital expenditure
March 2008 212.0 149.8 195.8
December 2007 225.8 141.7 203.7
Financial year to date 655.3 425.3 568.7
Planned for next six months to September
2008 536.4 372.6 515.7
Operating and financial results
South African Rand
International Operations
Ghana
Total Tarkwa Damang
Operating Results
Ore milled/treated (000 tons)
March 2008 9,210 5,765 1,232
December 2007 8,863 5,588 1,103
Financial year to date 26,501 16,566 3,459
Yield (grams per ton)
March 2008 1.3 0.9 1.3
December 2007 1.3 0.9 1.2
Financial year to date 1.3 0.9 1.3
Gold produced (kilograms)
March 2008 11,525 5,135 1,635
December 2007 11,250 4,925 1,376
Financial year to date 33,811 14,850 4,486
Gold sold (kilograms)
March 2008 11,525 5,135 1,635
December 2007 11,416 5,061 1,406
Financial year to date 33,811 14,850 4,486
Gold price received (Rand per kilogram)
March 2008 217,744 217,235 217,798
December 2007 171,636 171,369 171,906
Financial year to date 182,370 182,108 183,170
Total cash costs (Rand per kilogram)
March 2008 119,748 104,323 130,887
December 2007 102,181 89,844 131,508
Financial year to date 109,648 96,990 123,362
Total production costs (Rand per kilogram)
March 2008 147,323 120,370 146,789
December 2007 129,914 104,426 145,946
Financial year to date 137,784 112,620 136,826
Operating costs (Rand per ton)
March 2008 149 94 187
December 2007 132 83 182
Financial year to date 140 88 174
Financial Results (Rand million)
Revenue
March 2008 2,509.5 1,115.5 356.1
December 2007 1,959.4 867.3 241.7
Financial year to date 6,166.1 2,704.3 821.7
Operating costs, net
March 2008 1,417.0 533.4 217.8
December 2007 1,218.9 453.3 183.4
Financial year to date 3,823.8 1,438.0 556.4
- Operating costs
March 2008 1,376.3 540.3 230.5
December 2007 1,167.7 465.8 200.9
Financial year to date 3,721.9 1,460.3 603.2
- Gold inventory change
March 2008 40.7 (6.9) (12.7)
December 2007 51.2 (12.5) (17.5)
Financial year to date 101.9 (22.3) (46.8)
Operating profit
March 2008 1,092.5 582.1 138.3
December 2007 740.5 414.0 58.3
Financial year to date 2,342.3 1,266.3 265.3
Amortisation of mining assets
March 2008 289.5 87.3 25.8
December 2007 267.0 75.8 20.2
Financial year to date 856.1 238.6 60.1
Net operating profit
March 2008 803.0 494.8 112.5
December 2007 473.5 338.2 38.1
Financial year to date 1,486.2 1,027.7 205.2
Other income/(expense)
March 2008 24.6 (7.6) (0.7)
December 2007 36.9 10.0 (0.4)
Financial year to date 86.7 3.4 (0.9)
Profit before taxation
March 2008 827.6 487.2 111.8
December 2007 510.4 348.2 37.7
Financial year to date 1,572.9 1,031.1 204.3
Mining and income taxation
March 2008 267.1 144.6 35.9
December 2007 158.0 102.7 14.9
Financial year to date 495.5 293.3 67.1
- Normal taxation
March 2008 102.5 55.9 20.2
December 2007 85.0 56.2 7.2
Financial year to date 248.9 148.6 34.1
- Deferred taxation
March 2008 164.6 88.7 15.7
December 2007 73.0 46.5 7.7
Financial year to date 246.6 144.7 33.0
Profit before exceptional items
March 2008 560.5 342.6 75.9
December 2007 352.4 245.5 22.8
Financial year to date 1,077.4 737.8 137.2
Exceptional items
March 2008 0.4 - -
December 2007 - - -
Financial year to date 0.6 - -
Net profit
March 2008 560.9 342.6 75.9
December 2007 352.4 245.5 22.8
Financial year to date 1,078.0 737.8 137.2
Net profit excluding gains and losses on
foreign exchange, financial instruments and
exceptional items
March 2008 566.3 348.7 74.0
December 2007 340.7 234.6 22.3
Financial year to date 1,073.9 732.3 134.5
Capital expenditure
March 2008 708.0 397.1 56.0
December 2007 596.9 314.3 51.4
Financial year to date 1,853.0 1,018.1 159.5
Planned for next six months to September
2008 1,989.1 1,120.6 185.8
International Operations
Discontinued
Operations##
Australia # Venezuela
St Ives Agnew Choco 10
Operating Results
Ore milled/treated (000 tons)
March 2008 1,884 329 -
December 2007 1,859 313 360
Financial year to date 5,500 976 761
Yield (grams per ton)
March 2008 1.7 4.6 -
December 2007 1.8 4.9 1.6
Financial year to date 1.8 4.8 1.4
Gold produced (kilograms)
March 2008 3,231 1,524 -
December 2007 3,420 1,529 563
Financial year to date 9,836 4,639 1,052
Gold sold (kilograms)
March 2008 3,231 1,524 -
December 2007 3,420 1,529 600
Financial year to date 9,836 4,639 1,033
Gold price received (Rand per kilogram)
March 2008 217,487 219,948 -
December 2007 171,404 172,793 331,500
Financial year to date 181,751 183,746 290,029
Total cash costs (Rand per kilogram)
March 2008 141,721 113,189 -
December 2007 113,304 91,171 180,500
Financial year to date 126,678 100,798 170,281
Total production costs (Rand per kilogram)
March 2008 176,614 -
December 2007 151,425 189,833
Financial year to date 163,896 184,608
Operating costs (Rand per ton)
March 2008 240 468 -
December 2007 212 340 256
Financial year to date 227 420 251
Financial Results (Rand million)
Revenue
March 2008 702.7 335.2 -
December 2007 586.2 264.2 198.9
Financial year to date 1,787.7 852.4 299.6
Operating costs, net
March 2008 471.9 193.9 -
December 2007 393.8 188.4 114.1
Financial year to date 1,278.9 550.5 199.9
- Operating costs
March 2008 451.4 154.1 -
December 2007 394.6 106.4 92.0
Financial year to date 1,248.5 409.9 191.3
- Gold inventory change
March 2008 20.5 39.8 -
December 2007 (0.8) 82.0 22.1
Financial year to date 30.4 140.6 8.6
Operating profit
March 2008 230.8 141.3 -
December 2007 192.4 75.8 84.8
Financial year to date 508.8 301.9 99.7
Amortisation of mining assets
March 2008 176.4 -
December 2007 171.0 5.6
Financial year to date 557.4 14.8
Net operating profit
March 2008 195.7 -
December 2007 97.2 79.2
Financial year to date 253.3 84.9
Other income/(expense)
March 2008 32.9 -
December 2007 27.3 (27.8)
Financial year to date 84.2 (29.6)
Profit before taxation
March 2008 228.6 -
December 2007 124.5 51.4
Financial year to date 337.5 55.3
Mining and income taxation
March 2008 86.6 -
December 2007 40.4 3.2
Financial year to date 135.1 6.8
- Normal taxation
March 2008 26.4 -
December 2007 21.6 3.2
Financial year to date 66.2 5.9
- Deferred taxation
March 2008 60.2 -
December 2007 18.8 -
Financial year to date 68.9 0.9
Profit before exceptional items
March 2008 142.0 -
December 2007 84.1 48.2
Financial year to date 202.4 48.5
Exceptional items
March 2008 0.4 -
December 2007 - -
Financial year to date 0.6 -
Net profit
March 2008 142.4 -
December 2007 84.1 48.2
Financial year to date 203.0 48.5
Net profit excluding gains and losses on
foreign exchange, financial instruments and
exceptional items
March 2008 143.6 -
December 2007 83.8 43.6
Financial year to date 207.1 47.4
Capital expenditure
March 2008 198.5 56.4 -
December 2007 175.1 56.1 30.2
Financial year to date 525.1 150.3 70.0
Planned for next six months to September
2008 509.7 173.0 -
# As a significant portion of the acquisition price was allocated to tenements
of St Ives and Agnew based on endowment ounces and also as these two Australian
operations are entitled to transfer and then off-set tax losses from one
company to another, it is not meaningful to split the income statement below
operating profit.
## Discontinued operations are excluded from Total International Operations.
Operating and financial results
United States Dollars
Total Mine South African Operations
Operations Total Driefontein
Operating Results
Ore milled/treated (000 tons)
March 2008 12,376 3,166 1,426
December 2007 12,630 3,767 1,478
Financial year to date 37,356 10,846 4,436
Yield (ounces per ton)
March 2008 0.072 0.164 0.147
December 2007 0.081 0.174 0.162
Financial year to date 0.079 0.172 0.160
Gold produced (000 ounces)
March 2008 890.3 519.8 209.9
December 2007 1,018.6 656.9 239.6
Financial year to date 2,952.9 1,865.9 709.9
Gold sold (000 ounces)
March 2008 890.3 519.8 209.9
December 2007 1,023.9 656.9 239.6
Financial year to date 2,952.9 1,865.9 709.9
Gold price received (dollars per
ounce)
March 2008 921 930 933
December 2007 784 781 782
Financial year to date 789 783 788
Total cash costs (dollars per ounce)
March 2008 513 523 438
December 2007 467 465 434
Financial year to date 468 461 412
Total production costs (dollars per
ounce)
March 2008 619 622 516
December 2007 581 572 524
Financial year to date 575 559 494
Operating costs (dollars per ton)
March 2008 38 90 68
December 2007 39 85 74
Financial year to date 38 83 69
Financial Results ($ million)
Revenue
March 2008 821.1 481.5 195.8
December 2007 800.8 512.3 187.2
Financial year to date 2,328.7 1,461.5 559.1
Operating costs, net
March 2008 473.9 283.4 96.4
December 2007 500.9 321.0 109.9
Financial year to date 1,439.9 902.1 308.2
- Operating costs
March 2008 468.4 283.4 96.4
December 2007 493.5 321.0 109.9
Financial year to date 1,425.6 902.1 308.2
- Gold inventory change
March 2008 5.5 - -
December 2007 7.4 - -
Financial year to date 14.3 - -
Operating profit
March 2008 347.2 198.1 99.6
December 2007 299.9 191.3 77.3
Financial year to date 888.8 559.4 251.0
Amortisation of mining assets
March 2008 88.1 49.5 15.5
December 2007 107.8 68.2 20.9
Financial year to date 299.7 179.3 56.8
Net operating profit
March 2008 259.0 148.6 84.1
December 2007 192.2 123.1 56.4
Financial year to date 589.1 380.1 194.2
Other income/(expenses)
March 2008 (14.9) (18.2) (6.0)
December 2007 - (5.4) (2.6)
Financial year to date (18.9) (31.1) (11.4)
Profit before taxation
March 2008 244.1 130.4 78.1
December 2007 192.2 117.7 53.7
Financial year to date 570.2 349.0 182.8
Mining and income taxation
March 2008 78.7 41.9 24.6
December 2007 64.5 41.4 18.9
Financial year to date 190.5 120.8 63.1
- Normal taxation
March 2008 43.2 29.3 18.3
December 2007 38.3 25.7 13.0
Financial year to date 112.3 77.3 45.0
- Deferred taxation
March 2008 35.5 12.6 6.3
December 2007 26.2 15.7 5.9
Financial year to date 78.2 43.5 18.1
Profit before exceptional items
March 2008 165.5 88.4 53.4
December 2007 127.7 76.1 35.0
Financial year to date 379.7 228.0 119.5
Exceptional items
March 2008 (5.7) (5.9) (6.3)
December 2007 0.4 0.4 -
Financial year to date (1.4) (1.5) (3.2)
Net profit
March 2008 159.6 82.5 47.1
December 2007 128.1 76.5 35.0
Financial year to date 378.3 226.5 116.3
Net profit excluding gains and
losses on foreign exchange, financial
instruments and exceptional items
March 2008 163.8 86.0 50.9
December 2007 126.1 76.3 35.0
Financial year to date 379.5 228.5 118.4
Capital expenditure
March 2008 200.0 104.5 30.2
December 2007 211.8 123.6 39.3
Financial year to date 593.0 332.3 100.4
Planned for next six months to
September 2008 493.7 245.3 67.5
South African Operations
Kloof Beatrix South Deep
Operating Results
Ore milled/treated (000 tons)
March 2008 808 656 276
December 2007 1,008 868 413
Financial year to date 2,810 2,437 1,172
Yield (ounces per ton)
March 2008 0.217 0.125 0.191
December 2007 0.229 0.137 0.164
Financial year to date 0.228 0.131 0.166
Gold produced (000 ounces)
March 2008 175.5 81.7 52.6
December 2007 230.8 118.9 67.6
Financial year to date 641.6 319.8 194.6
Gold sold (000 ounces)
March 2008 175.5 81.7 52.6
December 2007 230.8 118.9 67.6
Financial year to date 641.6 319.8 194.6
Gold price received (dollars per ounce)
March 2008 919 946 927
December 2007 780 783 780
Financial year to date 779 784 780
Total cash costs (dollars per ounce)
March 2008 470 668 811
December 2007 419 497 680
Financial year to date 416 528 675
Total production costs (dollars per ounce)
March 2008 570 775 984
December 2007 524 594 868
Financial year to date 516 620 837
Operating costs (dollars per ton)
March 2008 107 88 159
December 2007 101 72 115
Financial year to date 100 73 115
Financial Results ($ million)
Revenue
March 2008 160.4 76.6 48.5
December 2007 179.5 92.9 52.7
Financial year to date 499.6 250.9 151.8
Operating costs, net
March 2008 86.0 57.3 43.7
December 2007 101.7 62.1 47.3
Financial year to date 280.7 177.9 135.3
- Operating costs
March 2008 86.0 57.3 43.7
December 2007 101.7 62.1 47.3
Financial year to date 280.7 177.9 135.3
- Gold inventory change
March 2008 - - -
December 2007 - - -
Financial year to date - - -
Operating profit
March 2008 74.4 19.2 4.9
December 2007 77.7 30.8 5.4
Financial year to date 218.9 72.9 16.6
Amortisation of mining assets
March 2008 16.8 8.3 8.9
December 2007 23.7 11.2 12.5
Financial year to date 62.9 28.5 31.1
Net operating profit
March 2008 57.7 10.9 (4.0)
December 2007 54.0 19.6 (7.1)
Financial year to date 156.1 44.4 (14.5)
Other income/(expenses)
March 2008 (6.6) (5.2) (0.5)
December 2007 (1.4) (1.2) (0.2)
Financial year to date (9.6) (7.9) (2.3)
Profit before taxation
March 2008 51.1 5.7 (4.5)
December 2007 52.7 18.4 (7.3)
Financial year to date 146.5 36.5 (16.8)
Mining and income taxation
March 2008 17.0 2.1 (1.8)
December 2007 18.6 6.9 (2.9)
Financial year to date 50.2 13.8 (6.3)
- Normal taxation
March 2008 11.0 - -
December 2007 12.8 - -
Financial year to date 32.2 0.1 -
- Deferred taxation
March 2008 6.0 2.1 (1.8)
December 2007 5.7 7.0 (2.9)
Financial year to date 18.0 13.7 (6.3)
Profit before exceptional items
March 2008 34.1 3.6 (2.7)
December 2007 34.1 11. 4 (4.3)
Financial year to date 96.3 22.7 (10.5)
Exceptional items
March 2008 - 0.4 -
December 2007 - 0.1 0.2
Financial year to date 0.1 0.5 1.1
Net profit
March 2008 34.1 4.0 (2.7)
December 2007 34.1 11.5 (4.1)
Financial year to date 96.4 23.2 (9.4)
Net profit excluding gains and losses on
foreign exchange, financial instruments and
exceptional items
March 2008 34.1 3.7 (2.7)
December 2007 34.2 11.5 (4.4)
Financial year to date 96.3 22.9 (9.1)
Capital expenditure
March 2008 28.2 20.0 26.2
December 2007 33.4 21.0 30.0
Financial year to date 92.2 59.8 80.0
Planned for next six months to September
2008 67.0 46.5 64.4
Average exchange rates were US$1 = R7.45 and US$1 = R6.76 for the March 2008
and December 2007 quarters respectively. The Australian dollar exchange rates
were A$1 = R6.73 and A$1 = R6.03 for the March 2008 and December 2007 quarters
respectively. # As a significant portion of the acquisition price was allocated
to tenements of St Ives and Agnew on endowment ounces and also as these two
Australian operations are entitled to transfer and then off-set tax losses from
one company to another, it is not meaningful to split the income statement
below operating profit. Figures may not add as they are rounded independently.
## Discontinued operations are excluded from Total International and Total Mine
Operations.
Operating and financial results
United States Dollars
International Operations
Ghana
Total Tarkwa Damang
Operating Results
Ore milled/treated (000 tons)
March 2008 9,210 5,765 1,232
December 2007 8.863 5,588 1,103
Financial year to date 26,501 16,566 3,459
Yield (ounces per ton)
March 2008 0.040 0.029 0.043
December 2007 0.041 0.028 0.040
Financial year to date 0.041 0.029 0.042
Gold produced(000 ounces)
March 2008 370.5 165.1 52.6
December 2007 361.7 158.3 44.2
Financial year to date 1,087.0 477.4 144.2
Gold sol d (000 ounces)
March 2008 370.5 165.1 52.6
December 2007 367.0 162.7 45.2
Financial year to date 1,087.0 477.4 144.2
Gold price received
(dollars per ounce)
March 2008 909 907 909
December 2007 790 788 791
Financial year to date 798 797 801
Total cash costs
(dollars per ounce)
March 2008 500 436 546
December 2007 470 413 605
Financial year to date 480 424 540
Total production costs
(dollars per ounce)
March 2008 615 503 613
December 2007 598 480 672
Financial year to date 603 493 599
Operating costs
(dollars per ton)
March 2008 20 13 25
December 2007 19 12 27
Financial year to date 20 12 25
Financial Results ($ million)
Revenue
March 2008 339.6 151.1 48.4
December 2007 288.7 127.7 35.7
Financial year to date 867.2 380.4 115.6
Operating costs, net
March 2008 190.5 71.7 29.4
December 2007 180.1 67.0 27.0
Financial year to date 537.6 202.3 78.3
- Operating costs
March 2008 185.0 72.6 31.0
December 2007 172.6 68.8 29.6
Financial year to date 523.6 205.4 84.8
- Gold inventory change
March 2008 5.5 (0.9) (1.7)
December 2007 7.5 (1.8) (2.6)
Financial year to date 14.3 (3.1) (6.6)
Operating profit
March 2008 149.1 79.4 19.0
December 2007 108.5 60.6 8.7
Financial year to date 329.4 178.1 37.3
Amortisation of mining assets
March 2008 38.6 11.8 3.6
December 2007 39.6 11.2 2.9
Financial year to date 120.4 33.6 8.5
Net operating profit
March 2008 110.4 67.6 15.5
December 2007 69.1 49.5 5.7
Financial year to date 209.0 144.5 28.8
Other income/(expenses)
March 2008 3.3 (1.1) -
December 2007 5.4 1.5 (0.1)
Financial year to date 12.2 0.5 (0.1)
Profit before taxation
March 2008 113.8 66.5 15.5
December 2007 74.4 51.0 5.6
Financial year to date 221.3 145.0 28.8
Mining and income taxation
March 2008 36.7 19.8 4.9
December 2007 23.1 15.1 2.2
Financial year to date 69.7 41.3 9.4
- Normal taxation
March 2008 13.9 7.5 2.8
December 2007 12.5 8.3 1.1
Financial year to date 35.0 20.9 4.8
- Deferred taxation
March 2008 22.9 12.3 2.1
December 2007 10.5 6.8 1.1
Financial year to date 34.7 20.4 4.7
Profit before exceptional items
March 2008 77.1 46.8 10.5
December 2007 51.3 35.9 3.4
Financial year to date 151.6 103.8 19.3
Exceptional items
March 2008 0.1 - -
December 2007 - - -
Financial year to date 0.1 - -
Net profit
March 2008 77.1 46.8 10.5
December 2007 51.3 35.9 3.4
Financial year to date 151.7 103.8 19.3
Net profit excluding gains and losses
on foreign exchange, financial
instruments and exceptional items
March 2008 77.8 47.6 10.2
December 2007 49.7 34.4 3.3
Financial year to date 151.0 103.0 18.9
Capital expenditure
March 2008 95.4 53.6 7.5
December 2007 88.1 46.4 7.6
Financial year to date 260.6 143.2 22.4
Planned for next six months to September 2008 248.3 139.9 23.2
International Operations
Australia #
St Ives Agnew
Operating Results
Ore milled/treated (000 tons)
March 2008 1,884 329
December 2007 1,859 313
Financial year to date 5,500 976
Yield (ounces per ton)
March 2008 0.055 0.149
December 2007 0.059 0.157
Financial year to date 0.057 0.153
Gold produced(000 ounces)
March 2008 103.9 49.0
December 2007 110.0 49.2
Financial year to date 316.2 149.1
Gold sold (000 ounces)
March 2008 103.9 49.0
December 2007 110.0 49.2
Financial year to date 316.2 149.1
Gold price received
(dollars per ounce)
March 2008 908 918
December 2007 789 795
Financial year to date 795 804
Total cash costs
(dollars per ounce)
March 2008 592 473
December 2007 521 419
Financial year to date 554 441
Total production costs
(dollars per ounce)
March 2008 737
December 2007 697
Financial year to date 717
Operating costs
(dollars per ton)
March 2008 32 63
December 2007 31 50
Financial year to date 32 59
Financial Results ($ million)
Revenue
March 2008 94.8 45.3
December 2007 86.3 39.0
Financial year to date 251.4 119.9
Operating costs, net
March 2008 63.4 26.0
December 2007 58.4 27.8
Financial year to date 180.0 77.4
- Operating costs
March 2008 60.6 20.8
December 2007 58.4 15.9
Financial year to date 175.7 57.7
- Gold inventory change
March 2008 2.8 5.3
December 2007 - 11.9
Financial year to date 4.3 19.8
Operating profit
March 2008 31.5 19.3
December 2007 27.9 11.2
Financial year to date 71.6 42.5
Amortisation of mining assets
March 2008 23.4
December 2007 25.4
Financial year to date 78.4
Net operating profit
March 2008 27.3
December 2007 13.8
Financial year to date 35.6
Other income/(expenses)
March 2008 4.4
December 2007 4.0
Financial year to date 11.8
Profit before taxation
March 2008 31.8
December 2007 17.8
Financial year to date 47.5
Mining and income taxation
March 2008 12.0
December 2007 5.8
Financial year to date 19.0
- Normal taxation
March 2008 3.6
December 2007 3.1
Financial year to date 9.3
- Deferred taxation
March 2008 8.4
December 2007 2.7
Financial year to date 9.7
Profit before exceptional items
March 2008 19.8
December 2007 12.0
Financial year to date 28.5
Exceptional items
March 2008 0.1
December 2007 -
Financial year to date 0.1
Net profit
March 2008 19.9
December 2007 12.0
Financial year to date 28.6
Net profit excluding gains and losses
on foreign exchange, financial
instruments and exceptional items
March 2008 19.9
December 2007 12.1
Financial year to date 29.1
Capital expenditure
March 2008 26.8 7.6
December 2007 25.8 8.2
Financial year to date 73.9 21.2
Planned for next six months to September 2008 63.6 21.6
Australian Dollars Discontinued
operations
Australia # Venezuela##
St Ives Agnew Choco 10
Operating Results
Ore milled/treated (000 tons)
March 2008 1,884 329 -
December 2007 1,859 313 360
Financial year to date 5,500 976 761
Yield (ounces per ton)
March 2008 0.055 0.149 -
December 2007 0.059 0.157 0.050
Financial year to date 0.057 0.153 0.044
Gold produced(000 ounces)
March 2008 103.9 49.0 -
December 2007 110.0 49.2 18.1
Financial year to date 316.2 149.1 33.8
Gold sol d (000 ounces)
March 2008 103.9 49.0 -
December 2007 110.0 49.2 19.3
Financial year to date 316.2 149.1 33.2
Gold price received
(dollars per ounce)
March 2008 1,005 1,017 -
December 2007 884 891 1,525
Financial year to date 903 913 1,269
Total cash costs
(dollars per ounce)
March 2008 655 523 -
December 2007 584 470 830
Financial year to date 629 501 745
Total production costs
(dollars per ounce)
March 2008 816 -
December 2007 781 873
Financial year to date 814 807
Operating costs
(dollars per ton)
March 2008 36 70 -
December 2007 35 56 38
Financial year to date 36 67 35
Financial Results ($ million)
Revenue
March 2008 105.6 50.4 -
December 2007 97.1 43.8 29.0
Financial year to date 285.6 136.2 42.1
Operating costs, net
March 2008 70.4 28.8 -
December 2007 65.1 31.2 16.7
Financial year to date 204.3 87.9 28.1
- Operating costs
March 2008 67.2 23.1 -
December 2007 65.3 17.6 13.6
Financial year to date 199.4 65.5 26.9
- Gold inventory change
March 2008 3.2 5.8 -
December 2007 (0.1) 13.6 3.1
Financial year to date 4.9 22.5 1.2
Operating profit
March 2008 35.2 21.5 -
December 2007 31.9 12.5 12.3
Financial year to date 81.3 48.2 14.0
Amortisation of mining assets
March 2008 25.8 -
December 2007 28.3 0.8
Financial year to date 89.0 2.1
Net operating profit
March 2008 30.9 -
December 2007 16.2 11.5
Financial year to date 40. 5 11.9
Other income/(expenses)
March 2008 5.0 -
December 2007 4.5 (4.0)
Financial year to date 13.5 (4.2)
Profit before taxation
March 2008 35.8 -
December 2007 20.7 7.5
Financial year to date 53.9 7.8
Mining and income taxation
March 2008 13.6 -
December 2007 6.7 0.5
Financial year to date 21.6 1.0
- Normal taxation
March 2008 4.0 -
December 2007 3.6 0.5
Financial year to date 10.6 0.8
- Deferred taxation
March 2008 9.6 -
December 2007 3.1 -
Financial year to date 11.0 0.1
Profit before exceptional items
March 2008 22.2 -
December 2007 13.9 7.0
Financial year to date 32.3 6.8
Exceptional items
March 2008 0.1 -
December 2007 - -
Financial year to date 0.1 -
Net profit
March 2008 22.3 -
December 2007 13.9 7.0
Financial year to date 32.4 7.0
Net profit excluding gains and losses
on foreign exchange, financial
instruments and exceptional items
March 2008 22.6 -
December 2007 13.9 6.6
Financial year to date 33.1 6.7
Capital expenditure
March 2008 29.7 8.4 -
December 2007 29.0 9.3 4.5
Financial year to date 83.9 24.0 9.8
Planned for next six months to September 2008 69.1 23.4 -
Underground and surface
South African rand and metric units
Operating Results
Total Mine South African Operations
Operations Total Driefontein Kloof
Ore milled/treated (000ton)
- underground
March 2008 2,468 2,096 669 521
December 2007 3,349 2,957 920 839
Financial year to date 9,268 8,116 2,513 2,253
- surface
March 2008 9,908 1,070 757 287
December 2007 9,281 810 558 169
Financial year to date 28,088 2,739 1,923 557
- total
March 2008 12,376 3,166 1,426 808
December 2007 12,630 3,767 1,478 1,008
Financial year to date 37,356 10,855 4,436 2,810
Yield (grams per ton)
- underground
March 2008 6.9 7.2 8.6 9.9
December 2007 6.5 6.7 7.7 8.4
Financial year to date 6.7 6.8 8.1 8.6
- surface
March 2008 1.1 1.1 1.1 1.1
December 2007 1.1 0.8 0.7 0.9
Financial year to date 1.1 0.9 0.9 1.0
- combined
March 2008 2.2 5.1 4.6 6.8
December 2007 2.5 5.4 5.0 7.1
Financial year to date 2.5 5.4 5.0 7.1
Gold produced (kilograms)
- underground
March 2008 17,094 15,013 5,721 5,145
December 2007 21,916 19,806 7,050 7,024
Financial year to date 61,896 55,582 20,380 19,419
- surface
March 2008 10,598 1,154 809 313
December 2007 9,766 626 401 155
Financial year to date 29,950 2,453 1,699 537
- total
March 2008 27,692 16,167 6,530 5,458
December 2007 31,682 20,432 7,451 7,179
Financial year to date 91,846 58,035 22,079 19, 956
Operating costs (Rand per
ton)
- underground
March 2008 941 974 984 1,206
December 2007 696 715 760 808
Financial year to date 748 765 811 870
- surface
March 2008 119 79 86 63
December 2007 109 74 80 64
Financial year to date 114 75 80 65
- total
March 2008 283 672 507 800
December 2007 265 577 504 683
Financial year to date 271 591 494 710
South African Operations
South
Beatrix Deep Total
Ore milled/treated (000 ton)
- underground
March 2008 656 250 372
December 2007 868 330 392
Financial year to date 2,437 913 1,152
- surface
March 2008 - 26 8,838
December 2007 - 83 8,471
Financial year to date - 259 25,349
- total
March 2008 656 276 9,210
December 2007 868 413 8,863
Financial year to date 2,437 1,172 26,501
Yield (grams per ton)
- underground
March 2008 3.9 6.4 5.6
December 2007 4.3 6.2 5.4
Financial year to date 4.1 6.4 5.5
- surface
March 2008 - 1.2 1.1
December 2007 - 0.8 1.1
Financial year to date - 0.8 1.1
- combined
March 2008 3.9 5.9 1.3
December 2007 4.3 5.1 1.3
Financial year to date 4.1 5.2 1.3
Gold produced (kilograms)
- underground
March 2008 2,542 1,605 2,081
December 2007 3,698 2,034 2,110
Financial year to date 9,947 5,836 6,314
- surface
March 2008 - 32 9,444
December 2007 - 70 9,140
Financial year to date - 217 27,497
- total
March 2008 2,542 1,637 11,525
December 2007 3,698 2,104 11,250
Financial year to date 9,947 6,053 33,811
Operating costs (Rand per ton)
- underground
March 2008 655 1,303 753
December 2007 484 958 554
Financial year to date 519 1,038 626
- surface
March 2008 - 50 124
December 2007 - 52 112
Financial year to date - 55 118
- total
March 2008 655 1,185 149
December 2007 484 776 132
Financial year to date 519 821 140
International Operations
Ghana Australia
Tarkwa Damang St Ives Agnew
Ore milled/treated (000 ton)
- underground
March 2008 - - 234 138
December 2007 - - 302 90
Financial year to date - - 809 343
- surface
March 2008 5,765 1,232 1,650 191
December 2007 5,588 1,103 1,557 223
Financial year to date 16,566 3,459 4,691 633
- total
March 2008 5,765 1,232 1,884 329
December 2007 5,588 1,103 1,859 313
Financial year to date 16,566 3,459 5,500 976
Yield (grams per ton)
- underground
March 2008 - - 4.5 7.4
December 2007 - - 4.4 8.6
Financial year to date - - 4.4 8.1
- surface
March 2008 0.9 1.3 1.3 2.6
December 2007 0.9 1.2 1.3 3.4
Financial year to date 0.9 1.3 1.3 2.9
- combined
March 2008 0.9 1.3 1.7 4.6
December 2007 0.9 1.2 1.8 4.9
Financial year to date 0.9 1.3 1.8 4.8
Gold produced (kilograms)
- underground
March 2008 - - 1,056 1,025
December 2007 - - 1,336 774
Financial year to date - - 3,520 2.794
- surface
March 2008 5,135 1,635 2,175 499
December 2007 4,925 1,376 2,084 755
Financial year to date 14,850 4,486 9,836 4,639
- total
March 2008 5,135 1,635 3,231 1,524
December 2007 4,925 1,376 3,420 1,529
Financial year to date 14,850 4,486 9,836 4,639
Operating costs (Rand per ton)
- underground
March 2008 - - 725 801
December 2007 - - 501 730
Financial year to date - - 584 724
- surface
March 2008 94 187 171 228
December 2007 83 182 156 182
Financial year to date 88 174 166 255
- total
March 2008 94 187 240 468
December 2007 83 182 212 340
Financial year to date 88 174 227 420
Discontinued
Operations
Venezuela##
Choco 10
Ore milled/treated (000 ton)
- underground
March 2008 -
December 2007 -
Financial year to date -
- surface
March 2008 -
December 2007 360
Financial year to date 761
- total
March 2008 -
December 2007 360
Financial year t o date 761
Yield (grams per ton)
- underground
March 2008 -
December 2007 -
Financial year to date -
- surface
March 2008 -
December 2007 1.6
Financial year to date 1.4
- combined
March 2008 -
December 2007 1.6
Financial year to date 1.4
Gold produced (kilograms)
- underground
March 2008 -
December 2007 -
Financial year to date -
- surface
March 2008 -
December 2007 563
Financial year to date 1,052
- total
March 2008 -
December 2007 563
Financial year to date 1,052
Operating costs (Rand per ton)
- underground
March 2008 -
December 2007 -
Financial year to date -
- surface
March 2008 -
December 2007 256
Financial year to date 251
- total
March 2008 -
December 2007 256
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
March 2008 quarter
Reef Carbon Main VCR
Leader
Advanced (m) 3,622 674 1,533
Advanced on reef (m) 566 342 202
Sampled (m) 462 309 138
Channel width (cm) 56 56 89
Average value - (g/t) 46.3 6.3 40.2
- (cm.g/t) 2,570 354 3,571
December 2007 quarter
Reef Carbon Main VCR
Leader
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) 957 521 1,314
9 months year to date F2008
Reef Carbon Main VCR
Leader
Advanced (m) 12,800 3,021 5,100
Advanced on reef (m) 2,106 1,504 802
Sampled (m) 1,947 1,263 585
Channel width (cm) 57 40 73
Average value - (g/t) 24.6 11.5 25.0
- (cm.g/t) 1,396 463 1,816
Kloof March 2008 quarter
Reef Cobble Kloof Main VCR
Advanced (m) 17 271 1,284 4,859
Advanced on reef (m) 1 79 357 712
Sampled (m) - 57 336 753
Channel width (cm) - 121 68 103
Average value - (g/t) - 1.3 16.3 18.2
- (cm.g/t) - 152 1,103 1,872
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
9 months year to date F2008
Reef Cobble Kloof Main VCR
Advanced (m) 120 847 4,557 20,276
Advanced on reef (m) 105 96 1,068 2,661
Sampled (m) 105 78 939 2,353
Channel width (cm) 175 121 97 100
Average value - (g/t) 5.5 1.5 12.2 21.0
- (cm.g/t) 956 188 1,187 2,096
Beatrix March 2008 quarter
Reef Beatrix Kalkoenkrans
Advanced (m) 7,183 2,058
Advanced on reef (m) 1,525 421
Sampled (m) 1,668 387
Channel width (cm) 103 124
Average value - (g/t) 8.6 13.9
- (cm.g/t) 881 1,726
December 2007 quarter
Reef Beatrix Kalkoenkrans
Advanced (m) 8,372 2,281
Advanced on reef (m) 2,273 222
Sampled (m) 2,079 204
Channel width (cm) 103 129
Average value - (g/t) 9.4 21.5
- (cm.g/t) 974 2,778
9 months year to date F2008
Reef Beatrix Kalkoenkrans
Advanced (m) 23,947 7,198
Advanced on reef (m) 5,568 810
Sampled (m) 5,481 759
Channel width (cm) 97 119
Average value - (g/t) 9.0 16.6
- (cm.g/t) 873 1,970
South Deep March 2008 quarter
Reef VCR Elsburg
Advanced (m) 534 697
Advanced on reef (m) 25 537
Sampled (m) 15 -
Channel width (cm) 24 - 1
Average value - (g/t) 3.8 6.5
- (cm.g/t) 91 - 2
South Deep December 2007 quarter
Reef VCR Elsburg
Advanced (m) 907 1,039
Advanced on reef (m) 67 942
Sampled (m) 84 -
Channel width (cm) 67 -
Average value - (g/t) 33.2 5.2
- (cm.g/t) 2,241 -
South Deep 9 months year to date F2008
Reef VCR Elsburg
Advanced (m) 2,071 2,790
Advanced on reef (m) 221 2,164
Sampled (m) 201 -
Channel width (cm) 70 -
Average value - (g/t) 18.7 5.9
- (cm.g/t) 1,319 -
1) Full channel width not fully exposed in development, hence not reported.
2) Trackless development in the Elsburg reefs is evaluated by means of the
block model.
Administration and corporate information
Corporate Secretary
CAIN FARREL
Tel: (+27)(11) 644 2525
Fax: (+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
Tel: (+44)(20) 7499 3916
Fax: (+44)(20) 7491 1989
American Depository
Receipts Transfer Agent
Bank of New York
Shareholder Relations
P O Box 11258
New York, NY20286 -1258
US toll-free telephone: (1)(888) 269 2377
e-mail: shareowner-svcs@mail.bony.com
Gold Fields Limited
Incorporated in the Republic of South Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN - ZAE 000018123
Investor Enquiries
WILLIE JACOBSZ
Tel: (+508) 358 -0188
Mobile: (+857) 241 -7127
e-mail: wjacobsz@gfexpl.com
Media Enquiries
REIDWAAN WOOKAY
Tel: (+27)(11) 644 2665
Fax: (+27)(11) 484 0639
e-mail: reidwaan.wookay@goldfields.co.za
ANDREW DAVIDSON
Tel: (+27)(11) 644 2638
Fax: (+27)(11) 484 0639
e-mail: adavidson@goldfields.co.za
Transfer Secretaries
South Africa
Computershare Investor Services
(Proprietary) Limited
Ground Floor
70 Marshall Street
Johannesburg, 2001
P O Box 61051
Marshalltown, 2107
Tel: (+27)(11) 370 5000
Fax: (+27)(11) 370 5271
United Kingdom
Capita Registrars
Bourne House
34 Beckenham Road
Beckenham
Kent BR3 4TU
England
Tel: (+44)(20) 8639 3399
Fax: (+44)(20) 8658 3430
WEBSITE
http://www.goldfields.co.za
Forward Looking Statements
Certain statements in this document constitute "forward looking statements"
within the meaning of Section 27A of the US Securities Act of 1933 and Section
21E of the US Securities Exchange Act of 1934.
Such forward looking statements involve known and unknown risks, uncertainties
and other important factors that could cause the actual results, performance or
achievements of the company to be materially different from the future results,
performance or achievements expressed or implied by such forward looking
statements.
Such risks, uncertainties and other important factors include among others:
economic, business and political conditions in South Africa; decreases in the
market price of gold; hazards associated with underground and surface gold
mining; labour disruptions; changes in government regulations, particularly
environmental regulations; changes in exchange rates; currency devaluations;
inflation and other macro-economic factors; and the impact of the AIDS crisis
in South Africa. These forward looking statements speak only as of the date of
this document.
The company undertakes no obligation to update publicly or release any
revisions to these forward looking statements to reflect events or
circumstances after the date of this document or to reflect the occurrence of
unanticipated events.
Directors
A J Wright (Chairman) K Ansah # J M McMahon *
R L Pennant-Rea *
N J Holland * (Chief Executive Officer) J G Hopwood D N Murray
P J Ryan
T P Goodlace (Chief Operating Officer) G Marcus D M J Ncube
C I von Christierson
* British # Ghanaian
Date: 09/05/2008 08:00:17 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
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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,
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information disseminated through SENS.
