| Fri 1 Aug 2008, 7:05 | | GFI - Gold Fields Limited - Results Announcement |
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GFI
GOGOF
GFI - Gold Fields Limited - Results Announcement
Gold Fields Limited
(Registration Number 1968/004880/06)
("Gold Fields ")
Share Code: GFI
ISIN: ZAE000018123
Gold Fields improves operational performance due to stabilization of power
supplies in South Africa
JOHANNESBURG. 1 August 2008, Gold Fields Limited (NYSE & JSE: GFI) today
announced net earnings for the June 2008 quarter of R843 million, compared with
earnings of R1,248 million and R528 million for the March 2008 and the June
2007 quarters respectively. In US dollar terms net earnings for the June 2008
quarter were US$105 million, compared with earnings of US$167 million and US$74
million for the March 2008 and the June 2007 quarters respectively.
June 2008 quarter salient features:
Attributable gold production increased by 5 per cent to 865,000 ounces;
Total cash costs steady at R125,359 per kilogram (US$502 per ounce);
Notional Cash Expenditure (operating cost plus capital expenditure) at
R217,065 per kilogram (US$869 per ounce) due to high inward investment in
growth projects;
Operating profit increased 6 per cent to R2.72 billion and normalised
earnings of R911 million generated;
Commissioning underway at Cerro Corona and Tarkwa`s CIL expansion due for
completion in the December quarter.
Financial year salient features:
Attributable gold production of 3.64 million ounces compared with 3.97
million ounces in the previous year;
Total cash costs increased from R86,623 per kilogram (US$374 per ounce) to
R111,315 per kilogram (US$476 per ounce) due to the lower production and
cost pressures driven by the resource boom;
Essakane and Venezuelan assets sold in the December quarter 2007, releasing
R4.2 billion (US$615 million) in value;
US$438 million invested in growth projects in Peru and Ghana;
US$121 million invested in increasing our ownership in Sino Gold and
Conquest Mining to 19.9 per cent and 19.1 per cent respectively.
Final dividend number 69 of 120 SA cents per share is payable on 25 August
2008, giving a total dividend for financial 2008 of 185 SA cents per share.
Statement by Nick Holland, Chief Executive Officer of Gold Fields:
"After a particularly difficult start to the quarter, with the accident at the
South Deep Gold Mine in which nine of our colleagues tragically lost their
lives, the people of Gold Fields rallied together to show their mettle.
Galvanized by my statement that "we will not mine if we cannot mine safely",
they took control of the safety situation on all of our mines, where a new
safety culture is rapidly taking root.
Against this backdrop, Gold Fields staged a welcome recovery with production
increasing by 5 per cent from Q3 which was negatively impacted by power
interruptions, while maintaining a tight control on costs, despite the
continued inflationary pressures world-wide. Notional Cash Expenditure
(operating cost and capital expenditure) for the quarter increased from US$843
per ounce in Q3 to US$869 per ounce, largely on the back of increased capital
expenditure at the international operations. The Group`s NCE is expected to
decline significantly early in calendar 2009 as capital expenditure on the
Cerro Corona project is completed and the mine becomes operational along with
the Tarkwa expansion.
A comprehensive review of infrastructure across our operations, following from
the heightened safety awareness across the Group since my appointment, has
resulted in urgent rehabilitation being necessary at the Main shaft
infrastructure at Kloof and in particular replacement of a significant portion
of the steelwork below 17 level. As a consequence, the operation of this shaft
is to be suspended for approximately six months while the necessary maintenance
is carried out. Kloof`s production over this period is expected to reduce by
between 25 and 35 per cent. Operations will continue at this shaft on a 1 day a
week basis to maintain integrity of faces and ore passes. Driefontein`s
production will also decline in the September quarter by approximately 400
kilograms due to a need to catch up safety critical secondary support and South
Deep is already in the process of reinstalling primary support at its 95 2 West
and 95 3 West ramps.
Production at Driefontein and South Deep should return to approximately 6,800
kilogram per quarter and 1,500 kilograms per quarter respectively by the
December quarter and Kloof`s production should be restored to 2,000 kilograms
per month by February 2009.
Notwithstanding the short term safety related actions to be initiated in South
Africa as referred to in the preceding paragraph, long awaited growth targets
will be commenced and brought to full production over the next two quarters. In
particular, the completion of the new Cave Rocks and Belleisle underground
mines at St Ives;
the addition of Cerro Corona and the completion of the Tarkwa CIL plant
expansion during Q2, positions Gold Fields should achieve its short term
target of a production rate of approximately 4 million ounces of gold per annum
at an NCE of US$700 per ounce to US$725 per ounce at R/US$8.00, early in
calendar 2009.
Stock data
Number of shares in issue
- at end June 2008 653,200,682
- average for the quarter 653,156,356
Free Float 100%
ADR Ratio 1:1
Bloomberg / Reuters GFISJ / GFLJ.J
JSE Limited - (GFI)
Range - Quarter ZAR87.01 - ZAR118.50
Average Volume - Quarter 2,751,270 shares / day
NYSE - (GFI)
Range - Quarter US$10.88 - US$15.11
Average Volume - Quarter 5,867,684 shares / day
Salient features South African Rand
Year ended
June June
2007 2008
Gold produced* kg 123,534 113,154
Total cash costs R/kg 86,623 111,315
Notional cash expenditure R/kg 135,666 186,088
Tons milled 000 51,165 49,615
Revenue R/kg 147,595 190,623
Operating costs R/ton 233 280
Operating profit Rm 7,740 9,041
Operating margin % 40 39
Rm 2,363 4,458
Net earnings
SA c.p.s. 414 683
Rm 2,188 2,992
Headline earnings
SA c.p.s. 392 459
Net earnings excluding Rm 2,298 2,930
gains and losses on
foreign exchange,
financial instruments, SA c.p.s. 412 449
exceptional items and
discontinued operations
Quarter
June March June
2007 2008 2008
Gold produced* kg 31,337 25,736 26,896
Total cash costs R/kg 91,473 122,920 125,359
Notional cash expenditure R/kg 161,485 201,181 217,065
Tons milled 000 12,670 12,376 12,259
Revenue R/kg 152,510 220,612 223,568
Operating costs R/ton 254 283 306
Operating profit Rm 1,969 2,566 2,721
Operating margin % 39 42 42
Rm 528 1,248 843
Net earnings
SA c.p.s. 81 191 129
Rm 506 1,246 881
Headline earnings
SA c.p.s. 78 191 135
Net earnings excluding Rm 488 1,009 911
gains and losses on
foreign exchange,
financial instruments, SA c.p.s 75 155 140
exceptional items and
discontinued operations
Salient features United States Dollars
Quarter
June March
2008 2008
Gold produced* oz (000) 865 827
Total cash costs $/oz 502 513
Notional cash expenditure $/oz 869 843
Tons milled 000 12,259 12,376
Revenue $/oz 895 921
Operating costs $/ton 39 38
Operating profit $m 355 347
Operating margin % 42 42
$m 105 167
Net earnings
US c.p.s. 16 26
$m 111 176
Headline earnings
US c.p.s. 17 27
Net earnings excluding $m 119 138
gains and losses on
foreign exchange,
financial instruments, US c.p.s. 18 21
exceptional items and
discontinued operations
Year ended
June June June
2007 2008 2007
Gold produced* oz (000) 1,007 3,638 3,972
Total cash costs $/oz 401 476 374
Notional cash expenditure $/oz 708 796 585
Tons milled 000 12,670 49,615 51,165
Revenue $/oz 669 816 638
Operating costs $/ton 36 38 32
Operating profit $m 278 1,244 1,075
Operating margin % 39 39 40
$m 74 613 328
Net earnings
US c.p.s. 11 94 59
$m 71 412 304
Headline earnings
US c.p.s. 11 63 54
Net earnings excluding $m 69 403 319
gains and losses on
foreign exchange,
financial instruments, US c.p.s. 11 62 57
exceptional items 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 a further two fatal accidents during the June
quarter in addition to that reported in the March quarter. The investigation
into the South Deep accident by the Department of Minerals and Energy Affairs
has commenced. There were no fatal accidents reported at Beatrix nor at the
international operations during the quarter and Kloof achieved one million
fatality free shifts during the quarter. The fatal injury frequency rate for
the June quarter regressed from 0.13 to 0.46 per million hours worked. The lost
time injury frequency rate improved from 6.4 to 6.1, the serious injury
frequency rate remained unchanged at 3.1 and the days lost injury frequency
rate improved from 241 to 238. The international operations halved their lost
time injury frequency rate in financial 2008, with Agnew achieving zero lost
time injuries for the year and Damang for the last six months.
The Full Compliance Health and Safety Management System will be revised taking
into consideration lessons learned from the investigations and the outcomes of
the audits conducted on the recent multiple fatal accidents. The Masiphephe
("Let`s be Safe") initiative, that has proved to be successful at Driefontein,
is being implemented as Sawubona Kusasa at Kloof and Khusulela at Beatrix to
improve safety performance at the rest of the South African operations.
Accordingly, more than 14,300 people went through these programmes during the
quarter.
Du Pont has been tasked to assess the existing health and safety management
systems and benchmark them against the international best practices on the
following: Leadership, Organization, Operations and Risk Assessment. Current
behaviours, attitudes, practices and procedures will be analysed and a gap
analysis will be conducted for each operation. It is planned to complete this
audit by the end of October 2008 in South Africa.
In the drive towards improved safety, pillar extraction risk assessments are
ongoing and to date, pillar mining activity has been reduced at the Driefontein
and Kloof operations. Ongoing monitoring of risk parameters are being conducted
to improve the overall assessment of pillar mining, seismicity and associated
geological features.
The net result of the above is that pillar mining activity has reduced by 24
per cent at Driefontein and 51 per cent at Kloof and affects production by
1,200 kilograms per quarter which is already included in our forecast.
The Group remains committed to a philosophy of zero harm, and benchmarks itself
against the Ontario benchmark, as well as pursuing the Mine Health and Safety
Council milestones in South Africa. With the exception of South Deep and Cerro
Corona, the operations have been audited and achieved OHSAS 18001
certification. The operations not currently certified are implementing the
requirements of OHSAS 18001, with certification planned by the end of the
calendar year.
Financial review
Quarter ended 30 June 2008 compared with quarter ended 31 March 2008
Revenue
Attributable gold production for the June 2008 quarter amounted to 865,000
ounces, compared with 827,000 ounces in the March quarter, an increase of 5 per
cent. This was slightly higher than the guidance given on 25 June. Production
at the South African operations increased from 520,000 ounces to 553,000 ounces
or 6 per cent, as production in the March quarter was negatively affected by
the power disruptions and the slow start-up after the Christmas break.
Attributable production at the international operations increased 2 per cent
from 307,000 ounces to 312,000 ounces.
At the South African operations the increase in gold production in the June
quarter was directly attributable to the lost production in the March quarter
due to the reduced power supply from Eskom. As a result of the curtailed power
supply, a press release on 25 February 2008 gave an updated guidance for the
March quarter which forecast a decrease in production at the South African
operations compared with the December quarter of between 20 and 25 per cent and
a reduction of between 15 and 20 per cent for the June quarter. The actual
decrease for the March and June quarters was 21 per cent and 16 per cent
respectively, both in line with forecast. Driefontein, Kloof and South Deep`s
gold production was more or less in line with the guidance given in the March
quarterly report, while Beatrix achieved 11 per cent above guidance, mainly due
to an improved mine call factor (MCF).
At the international operations, managed gold production at Tarkwa increased 2
per cent due to an improved recovery from heap leach operations. At Damang,
gold production decreased by 5 per cent due to an increase in grade offset by
crusher down time and, like all the international operations, a slightly
shorter milling quarter. Total gold production from Ghana was similar quarter
on quarter. Gold production in Australia increased by 2 per cent with Agnew
increasing by 11 per cent due to higher grades from Waroonga underground. At St
Ives, gold production decreased due to lower processed volumes and lower
recoveries at the heap leach facility.
The average quarterly US dollar gold price achieved decreased 3 per cent from
US$921 per ounce in the March quarter to US$895 per ounce in the June quarter.
The average rand/US dollar exchange rate weakened by 4 per cent to R7.77,
compared with the R7.45 achieved in the March quarter. As a result of the above
factors, the rand gold price improved from R220,612 per kilogram to R223,568
per kilogram, slightly more than a 1 per cent increase. The Australian dollar
gold price decreased quarter on quarter from A$1,008 per ounce to A$949 per
ounce, compounded by a weakening US dollar against the Australian dollar which
moved from 0.9032 in the March quarter to 0.9434 in the June quarter.
The increase in the rand gold price achieved together with the increase
in production, resulted in revenue of R6,452 million (US$836 million)
an increase in rand terms of 6 per cent compared with the R6,109
million (US$821 million) achieved in the March quarter.
Operating costs
Operating costs increased from R3,503 million (US$468 million) in the March
quarter to R3,748 million (US$484 million) in the June quarter.
The increase of 7 per cent was driven by the increase in production at the
South African operations and translating costs at the international operations
into South African rand at the weaker rand. Total cash costs in rand terms
increased by less than 2 per cent (and decreased 2 per cent in US dollar terms)
from R122,920 per kilogram (US$513 per ounce) in the March quarter to R125,359
per kilogram (US$502 per ounce) in the June quarter.
At the South African operations, operating costs increased from R2,126 million
(US$283 million) to R2,197 million (US$282 million), an increase of 3 per cent.
This increase was mainly due to the higher volumes mined and processed in the
June quarter compared with the March quarter were the power disruptions
significantly constrained production. Total cash costs at the South African
operations decreased 3 per cent from R125,181 per kilogram (US$523 per ounce)
to R121,984 per kilogram (US$488 per ounce) in line with the increase in gold
production. The decrease in US dollar terms of 7 per cent is due to translating
costs at the weaker rand.
Operating costs at the international operations, including gold-in- process
movements, increased from R1,417 million (US$191 million), to R1,534 million
(US$199 million) in the June quarter, an increase of 8 per cent in rand terms
and 4 per cent in US dollar terms.
Approximately half of the total dollar increase at the international operations
occurred at Tarkwa, which reflected an increase in costs of US$4 million, or 6
per cent, due to price increases in commodities such as fuel, explosives and
tyres together with increased mining fleet maintenance costs. The balance of
the increase in costs was due to the 4 per cent stronger Australian dollar, as
costs in Australia were virtually unchanged quarter on quarter at A$99 million.
St Ives increased by A$2 million quarter on quarter due to higher open pit
waste charges, while Agnew was A$2 million lower compared with the March
quarter due to a decrease in ounces produced from the low grade Songvang
stockpile. Total cash costs at the international operations increased by 4 per
cent from US$500 per ounce in the March quarter to US$522 per ounce in the June
quarter.
Notional cash expenditure (NCE)
Notional cash expenditure is defined as operating costs plus capital
expenditure and is reported on a per kilogram and per ounce basis - refer the
detailed table on page 16 of this report. The objective is to provide the all
in costs for the Group and for each operation before greenfields exploration
expenditure. The NCE per ounce is an important measure as it determines how
much free cash flow is generated before taxation. One of Gold Fields`
objectives is to reduce its NCE per ounce and increase its free cash flow.
The NCE for the Group for the June quarter amounted to R217,065 per kilogram
(US$869 per ounce) compared with R201,181 per kilogram (US$840 per ounce) in
the March quarter. These figures include project expenditure at Cerro Corona.
At the South African operations the NCE was R180,712 per kilogram (US$723 per
ounce) which was similar to the March quarter. At the international operations
(excluding Cerro Corona) the increase was 12 per cent from US$755 per ounce to
US$848 per ounce due to the increase in capital expenditure at Tarkwa and in
Australia.
Operating margin
The net effect of the changes in revenue and costs, after taking into account
gold-in-process movements, was an increase in operating profit of 6 per cent
from R2,566 million (US$347 million) to R2,721 million (US$355 million). The
Group operating margin was maintained at a credible 42 per cent. The margin at
the South African operations increased from 41 per cent to 43 per cent, while
the margin at the international operations decreased from 44 per cent to 41 per
cent.
Amortisation
Amortisation increased from R714 million (US$95 million) in the March quarter
to R778 million (US$100 million) in the June quarter. This increase was mainly
at the international operations which increased from R290 million (US$39
million) to R352 million (US$46 million) because of an increase in production
from the Damang pit cutback and increased production at Agnew and St Ives`
underground mines.
Despite the increase in production at the South African operations amortisation
only increased from R376 million (US$50 million) to R390 million (US$50
million) as a result of a R50 million credit in the June quarter at South Deep
to reverse over provisions accumulated during the year.
Other
Net interest paid amounted to R46 million (US$6 million) for the June quarter
compared with R88 million (US$12 million) in the March quarter. This movement
includes a cost of R43 million (US$6 million) relating to the equity accounted
results of our share of Rusoro`s losses which was more than offset by a R58
million (US$7 million) correction of interest paid, as a result of capitalizing
qualifying interest expensed earlier in the year, and an increase in interest
received.
The loss on foreign exchange of R7 million (US$1 million), compares with a gain
of R38 million (US$6 million) in the March quarter. Both result from the
conversion of offshore cash holdings into the functional currency i.e. rands.
The gain on financial instruments for the quarter at R2 million (US$ nil
million) compares with a gain of R262 million (US$38 million) in the March
quarter. The gain in the June quarter is due to year to date exchange
adjustments of prior quarter`s gains. The gain of R262 million (US$38 million)
in the March quarter mainly comprises R136 million (US$18 million) on reversal
of previous marked to market unrealised losses on the Mvela floor and cap. 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.
Other costs increased from R32 million (US$5 million) to R76 million (US$10
million) mainly due to the increase in employee and non- executive directors
share based payments as a result of a change in the index used and an
additional allocation in June. The index previously used was the Philadelphia
XAU which was not considered representative of Gold Fields peers and as such
was replaced by an index of only six peer gold mining companies.
Exploration
Exploration expenditure, increased from R58 million (US$8 million) in the March
quarter to R107 million (US$14 million) in the June quarter.
This increase was due to increased expenditure in Australia, mainly at Mt
Carlton and costs of closing the Oxford office. Please refer to the Exploration
and Corporate Development section for more detail.
Exceptional items
The exceptional loss in the June quarter amounted to R95 million (US$17
million) compared with a loss of R42 million (US$11 million) in the March
quarter. The loss in the June quarter mainly comprised a R65 million (US$8
million) provision for restructuring costs at South Deep and impairment of
assets of R51 million (US$7 million) in Australia. At St Ives, Junction mine
and the original Leviathan pit are depleted and at Agnew, impairment of
rehabilitation assets relating to old slimes dams. The loss was partially
offset by an over provision of R21 million (US$3 million) on the 9 shaft
project at Driefontein raised in the March quarter. The loss in the March
quarter mainly relates to the provision of R45 million (US$6 million) for costs
at Driefontein regarding the suspension of the 9 shaft project.
Taxation
Taxation for the quarter amounted to R664 million (US$87 million) compared with
R567 million (US$77 million) in the March quarter. This increase is despite the
decrease in profit before taxation and exceptional items for the quarter. The
net increase is due to the increase in non-deductable charges during the
quarter such as exploration and employee and non-executive directors share
scheme costs. The tax provision includes normal and deferred taxation on all
operations together with government royalties at the international operations.
Earnings
Net profit attributable to ordinary shareholders amounted to R843 million
(US$105 million) or 129 SA cents per share (US$0.16 per share), compared with
R1,248 million (US$167 million) or 191 SA cents per share (US$0.26 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 R881
million (US$111 million) or 135 SA cents per share (US$0.17 per share),
compared with earnings of R1,246 million (US$176 million) or 191 SA cents per
share (US$0.27 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 R911
million (US$119 million) or 140 SA cents per share (US$0.18 per share),
compared with earnings of R1,009 million (US$138 million) or 155 SA cents per
share (US$0.21 per share) reported last quarter.
The decrease in earnings is mainly due to the after tax increase in net
operating profit being offset by an increase in other costs and exploration
costs, the provision for the South Deep restructuring and the gain on financial
instruments of R262 million in the March quarter, not repeated in the June
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,
the 140 million shares valued at R1,580 million (US$233 million) received from
Rusoro Mining Limited as part payment for the Venezuelan disposal and further
investment in Sino of R795 million (US$109 million). Added to this are marked
to market gains on listed investments.
Investments at year end amounted to R5.7 billion (US$713 million) and include
the following:
Investment Interest Value
Sino Gold Ltd 19.9% R2,290m (US$286)
Rusoro Mining Ltd 36.2% R1,850m (US$231m)
Mvela` Resources Ltd 4.0% R500m (US$63m)
Orezone Resources Inc 11.7% R362m (US$45m)
Conquest Mining Ltd 19.1% R171m (US$21m)
Orsu Metals Corp. 7.6% R90m (US$11m)
The above investments are valued at market prices, except for Rusoro which is
equity accounted and therefore shown at cost less equity accounted losses since
acquisition.
Cash flow
Cash inflow from operating activities for the quarter was R2,568 million
(US$334 million), compared with R3,039 million (US$408 million) in the March
quarter. This quarter on quarter decrease of R471 million (US$74 million) is
due to the decrease in profit before tax and the decrease in the working
capital inflow from R794 million (US$115 million) in the March quarter to R263
million (US$36 million) in the June quarter, partly offset by an increase in
non-cash items from a negative R165 million (US$18 million) to a positive R108
million (US$20 million).
Capital expenditure increased from R2,086 million (US$277 million) in the March
quarter to R2,525 million (US$327 million) in the June quarter. Approximately
half of the capital expenditure during the June quarter was spent on growth
projects.
At the South African operations capital expenditure increased from R785 million
(US$105 million) in the March quarter to R913 million (US$118 million) in the
June quarter. This increase of R128 million was made up of increased
expenditure on our battery loco projects, emergency power projects and safety
related projects such as additional loco guard cars, centralized blasting
systems as well as hopper and rail track upgrades. Expenditure on ore reserve
development at Driefontein, Kloof, and Beatrix accounted for R97 million (US$12
million), R139 million (US$18 million), and R79 million (US$10 million)
respectively. Expenditure on the 9 shaft project at Driefontein amounted to R71
million. Expenditure on the new mine development and equipment for mechanized
development at South Deep amounted to R112 million.
At the international operations capital expenditure increased from R708 million
(US$95 million) to R918 million (US$121 million). In Ghana the increase at
Tarkwa was R126 million (US$15 million) as a result of increased expenditure on
the CIL plant (US$3 million), sundry mining and metallurgical equipment (US$7
million) and the relocation of the Atuabo power station (US$5 million). In
Australia, capital expenditure increased by R95 million (A$11 million) with
increased expenditure on exploration of R7 million (A$1 million) and mine
development R36 million (A$5 million) at St Ives, and R47 million (A$6 million)
at Agnew on increased accommodation costs.
Capital expenditure at the Cerro Corona mine in Peru amounted to R687 million
(US$88 million) in the June quarter compared with R576 million (US$77 million)
in the March quarter. Cumulative expenditure to date on the project amounts to
US$501 million and is estimated at between US$540 million to US$550 million at
project completion. Refer to the Capital and Development Project section for
more detail.
Purchase of investments in the June quarter amounted to R708 million (US$97
million) and included acquisition of shares in Sino Gold Ltd, Conquest Mining
Ltd and Orsu Metals Corp. (formerly Lero Gold Company) increasing our holding
to 19.9 per cent, 19.1 per cent and 7.6 per cent respectively. Refer the
Corporate Development section for more detail. Purchase of investments in the
March quarter amounted to R258 million (US$36 million) and included the
purchase of 4.7 million Sino Gold Ltd 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 inflow from financing activities in the June quarter amounted to
R1,095 million (US$143 million). Loans received in the June quarter amounted to
R1,165 million (US$150 million) to fund the purchase of offshore investments
and capital funding for Cerro Corona. Loan repayments of South African rand
loans amounted to R850 million (US$105 million). A rights issue at Cerro Corona
amounting to US$96 million (R768 million) was accounted for during the quarter
all of this money having been raised from the minority shareholders in this
project following the capitalisation of cumulative shareholder loan funding
into equity. Net cash outflow from financing activities in the March quarter
amounted to R214 million (US$29 million). Loans received amounted to R1,535
million (US$210 million), which included 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) included 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 inflow for the quarter was R19 million (US$6 million outflow) compared
with a net cash inflow of R470 million (US$55 million) in the March quarter.
After accounting for a translation gain of R45 million (US$14 million), the
cash balance at the end of June was R2,007 million (US$251 million). The cash
balance at the end of March was R1,944 million (US$243 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).
The June quarter and financial year 2008 reporting will represent the last time
that these projects will be reporting as a separate project area. The new Gold
Fields South African operations strategy for cost leadership and efficiencies
will be driven through integrated teams as part of project 1M (quality and safe
underground mining), project 2M (new technology and innovation) and project 3M
(power, people and surface optimization including stores control and
procurement).
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 39
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 June quarter.
Eskom temporarily put new DSM projects on hold in May 2008 pending the outcome
of the revised National Energy Regulator of South Africa (NERSA) tariff
increase application by Eskom, which resulted in a lower increase being
approved. Despite the deferment of some of these DSM projects, a further
eighteen projects are underway, with at least eight of them due to provide
savings during the September 2009 quarter. The savings for financial 2008 were
R10 million, which is expected to grow to R20 million in financial 2009.
The conversion from diesel to battery power for underground locomotives is
progressing as planned. The project will deliver long term cost savings of R24
million per annum once the project is fully completed from the higher
efficiency of battery locomotives, and has the added benefit of improving
underground environmental conditions.
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 has been established for the West Wits area with the intent 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.
An energy consumption saving project aimed at reducing consumption by 10 per
cent at all Group operations by 2010 has been initiated. The reduction in
consumption at the South African operations will be delivered through air and
water conservation programmes, identifying and eliminating compressed air
leaks, efficient lighting systems, thermal and performance monitoring of
refrigeration and cooling plants, amongst other various power conservation
programmes. The pump efficiency monitoring project is ongoing and will deliver
R10 million per annum savings from reduced electricity consumption. At the
international operations various initiatives are currently being investigated
in order to achieve this objective.
In addition to the above, cost savings for financial 2008 were achieved on
Health Services (R30 million), Shared Services (R38 million) and accommodation
and feeding (R9 million).
The cost reporting and management benchmark module to improve reporting and
cost control continues.
Project Beyond: Group Integrated Supply chain and
Strategic Sourcing Optimisation
SA Project Beyond Strategic Sourcing and Supply
Initiatives
The extreme inflationary push which spiked in the March quarter continued
during the June quarter, with little relief on the horizon.
Steel producers announced a seventh consecutive price increase this calendar
year, effective from August, with certain steel products almost doubling for
the calendar year to date. This general inflationary scenario is unprecedented,
with raw material price increases reaching an all time high, compounded over
this period by added currency instability. Apart from the continued major
impact of steel inflation and related products across the board during this
past quarter, other areas which also showed major cost increases were timber
support, fuels and diesel, copper cables, mill liner spares and labour hire.
Strong focus remained on securing supply and related safety stock levels for
critical and strategic commodities.
Despite the inflationary environment, continued focus on total cost
optimisation initiatives delivered around R10 million estimated annual
contracted savings through forward buying contracts on steel input costs for
locomotives and through re-negotiating hoses and fittings contracts. Cumulative
contracted benefits for the 2008 financial year are estimated at around R31
million. In addition, inflation cost avoidance was also achieved during the
quarter across areas such as steel support products, pulleys, catering, lubes,
gas and instrumentation, estimated at R4 million. Cumulative annual cost
avoidance for financial year 2008 is estimated to be around R34 million.
Combined total cost savings and cost avoidance delivery during financial year
2008 is thus around R65 million.
The focus for financial 2009 will be to partially offset the inflationary
influences seen in the last few quarters, which will significantly affect
future costs. Savings initiatives will be geared towards increased salvage,
improved quality and product substitution as well as consumption optimisation
initiatives.
International Operations Strategic Sourcing and
Integrated Supply Chain Initiatives
During the June quarter continued global inflation pressures were experienced
across our Australian and Ghanaian operations in areas such as power, diesel,
grinding balls, explosives, lime, repairs and maintenance contracts. Peru has
largely been focusing on the transition from project to operational, and
preparing to align with shipping charters on the anticipated first shipment of
concentrate during the later part of the September quarter.
Gold Fields operations have been shielded from the direct impact of the recent
Western Australian gas explosion on the Apache gas line which had a major
impact on available natural gas in the region, being the main source of power
supply to the region. The impact on Gold Fields was mitigated by the existing
long term partnership and power purchasing arrangement for the supply of power,
with the main impact of this power disruption on Gold Fields being its indirect
effect on the price of commodities sourced from this region. In this regard the
Gold Fields Australia procurement team is working closely with impacted
suppliers to overcome this short term period of natural gas supply interruption
to the region.
New contracted benefits through an accommodation efficiencies project in
Australia delivered around US$1 million and an added US$2 million multi-year
carry over benefit was also realized. This brings the cumulative contracted
total cost benefits for the financial year for International operations to
around US$8 million.
For the September quarter, initiatives in Ghana will continue focusing on
critical supply optimisation and finalizing plans for an on-site emulsion plant
facility. In Australia, contractor mining alliance optimization will continue
and Peru will finalize the charter arrangements for the first shipments of
concentrate.
South African Operations
Royalty bill
On 3 June 2008 National Treasury released the Fourth Draft of the Mineral and
Petroleum Resources Royalty Bill for final comments. The Bill was subsequently
introduced by the Minister of Finance into Parliament on 26 June 2008. The Bill
takes into account numerous comments and workshops held between the industry
and National Treasury resulting in certain changes. The previous formula has
been amended to take into account the capital intensive nature of certain of
the mining operations, especially the Gold, Oil and Gas sectors, resulting in
the formula being changed from the previous EBITDA to "EBIT" (with 100 per cent
capital expenditure taken into account in the calculation of EBIT). A cap has
also been introduced of 5 per cent with a surcharge add-on in the formula of
0.5 per cent. As before the Royalty percentage determined is applied to Gross
revenue less certain deductions. Based on this formula Gold Fields` rate for
financial 2008 would have been 2.1 per cent.
Power supply cost
Power costs increased by 14.2 per cent effective from 1 April 2008.
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 has yet to be implemented. Eskom also requested an additional
increase of up to 53 per cent with effect from 1 July 2008. On 18 June 2008,
approval was given by NERSA to increase rates by an effective 20 per cent from
1 July 2008, with a potential 25 per cent increase effective from 1 April 2009.
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 and the 2 cents per kilowatt hour charge
detailed above by NERSA and the Department of Trade and Industry respectively.
Driefontein
June March
2008 2008
Gold produced - kg 6,786 6,530
- 000`ozs 218.2 209.9
Yield - underground - g/t 8.2 8.6
- combined - g/t 4.4 4.6
Total cash costs - R/kg 103,537 104,870
- US$/oz 414 438
Notional cash - R/kg 153,905 145,513
expenditure - US$/oz 616 608
Gold production increased by 4 per cent from 6,530 kilograms (209,900 ounces)
in the March quarter to 6,786 kilograms (218,200 ounces) in the June quarter in
line with the previous guidance. The increase in production was directly
attributable to more shifts available in the June quarter as measured against
the March quarter. The March quarter was negatively affected by the Eskom power
disruptions. Production was negatively affected during the quarter due to
public holidays and the shortage of labour at 6 shaft (which was stopped during
the Eskom power interruption), which is in the process of being recruited. The
June quarter was also negatively affected by stoppages resulting from the
previously reported accident arising from a seismic related fall of ground at
10 shaft. Underground yield decreased from 8.6 grams per ton to 8.2 grams per
ton for the quarter due to lower grades mined at 1, 4 and 8 shafts. Surface
yield returned to the year to date average, decreasing from 1.1 grams per ton
in the March quarter to 0.7 grams per ton in the June quarter. The negative
impact of the drop in grade on production was offset by underground tonnage
which increased from 669,000 tons in the March quarter to 760,000 tons in the
June quarter, together with an increase in surface tonnage from 757,000 tons to
785,000 tons.
Main development increased by 12 per cent for the quarter and on-reef
development increased by 19 per cent, mainly as a result of more shifts being
available for mining. Main development values decreased by 24 per cent to more
historic levels, mainly due to lower values intersected in the Carbon Leader
Reef at 1 and 5 shaft, and a drop in value at the Ventersdorp Contact Reef in
the 4 shaft pillar.
Operating costs increased 3 per cent, in line with production, from R723
million (US$96 million) to R742 million (US$95 million). Total cash costs
decreased 1 per cent in rand terms and 5 per cent in US dollar terms, from
R104,870 per kilogram to R103,537 per kilogram and from US$438 per ounce to
US$414 per ounce respectively.
Operating profit increased from R736 million (US$100 million) in the March
quarter to R785 million (US$103 million) in the June quarter as a result of the
increase in production and the marginally higher gold price received.
Capital expenditure increased from R227 million (US$30 million) to R303 million
(US$39 million), as forecast. This increase was mainly due to increased
expenditure on safety equipment (R32 million), battery loco project (R13
million), increased costs on the mothballed 9 shaft project (R9 million),
emergency power generation (R6 million) and other sustaining projects.
Notional cash expenditure increased from R145,513/kg (US$608 per ounce) to
R153,905/kg (US$616 per ounce) mainly due to the increased investment in
capital expenditure.
Theforecast for the September quarter is as follows:
Gold produced - 6,400 kilograms (205,800 ounces)
Total cash costs* - R129,000 per kilogram (US$500 per ounce)
Capital expenditure* - R200 million (US$25 million)
Notional cash expenditure* - R166,000 per kilogram (US$645 per ounce)
* Based on an exchange rate of US$1 = R8.00.
The decrease in gold production is mainly due to the drop in yield arising from
the decision to address backlog secondary support at the higher grade 1, 4 and
5 shafts and mining at other low grade shafts to compensate. The continued
stoppage at 10 shaft due to the recent high incidence of seismic activity as
well as a safety review of pillar mining also impacts negatively. The increase
in total cash costs is due to the anticipated lower production and higher costs
arising from the annual wage increases effective from 1 July, electricity
increases, higher commodity price increases and reduced off reef development
capitalised. The decrease in capital expenditure is due to the suspension of
the 9 shaft deepening project and lower development costs due to focus on
secondary support.
Kloof
June March
2008 2008
5,577
Gold produced - kg 5,458
- 000`ozs 179.3 175.5
Yield - underground - g/t 7.5 9.9
- combined - g/t 4.9 6.8
Total cash costs - R/kg 119,240 112,514
- US$/oz 477 470
Notional cash - R/kg 167,940 157,292
expenditure - US$/oz 672 657
Gold production increased by 2 per cent from 5,458 kilograms (175,500 ounces)
in the March quarter to 5,577 kilograms (179,300 ounces) in the June quarter.
This is in line with the previous guidance despite business interruptions which
included safety related production stoppages and an illegal miners stay-away.
Underground tonnage increased from 521,000 tons to 688,000 tons and surface
tons milled increased from 287,000 to 455,000 tons, as the March quarter`s
production was affected by the Eskom power disruptions and the slow start up
after the Christmas break. Surface tonnage toll milled at South Deep accounted
for 201,000 tons of the total surface tons. The average yield from underground
decreased from 9.9 grams per ton to 7.5 grams per ton due to the normalization
of the previous quarter`s high mine call factor. The increase in the gold
contribution from surface sources helped optimize milling capacity but resulted
in the combined yield decreasing from 6.8 grams per ton to 4.9 grams per ton.
Total main development increased by 21 per cent quarter on quarter from 6,429
metres to 7,782 metres whilst main on-reef development metres decreased by 9
per cent during the same period from 1,149 to 1,040 metres. The lower on-reef
development can be attributed to a large extent to the lower off-reef
development in the previous quarter not providing access to sufficient on reef
development. Additionally, four shaft`s finger raises were replaced by lower
advance rate wide raises during the quarter and this also contributed to the
lower on-reef development. However the higher off-reef development achieved
during the last quarter bodes well for the coming quarter`s on-reef development
profile. Values intersected in the Middelvlei reef decreased from 1,103 cm.g/t
to 633 cm.g/t as a result of traversing lower grade zones.
Total mine development values declined by 9 per cent.
Operating costs increased from R647 million (US$86 million) in the March
quarter to R694 million (US$89 million) in the June quarter.
This was mainly due to the impact of Eskom`s power rationing that resulted in
lower mining activity in the March quarter. June quarter costs include higher
incentive and overtime payments, increased costs for the additional surface
volumes processed at South Deep and increased commodity, steel and fuel costs
which have been impacted by price increases. Additionally, increased support
related costs were incurred. As a consequence of the higher costs and the
normalization of the mine call factor, the total cash cost increased 6 per cent
from R112,514 per kilogram to R119,240 per kilogram. In US dollar terms, total
cash costs increased marginally from US$470 per ounce to US$477 per ounce.
Operating profit was similar quarter on quarter at R558 million (US$72 million)
as result of the increased production and marginally higher gold price.
Capital expenditure at R242 million (US$31 million) increased by 14 per cent
compared with the previous quarter`s expenditure of R212 million (US$28
million). This was mainly due to emergency power generation costs and
additional mining equipment.
Notional cash expenditure increased from R157,292 per kilogram (US$657 per
ounce) to R167,940 per kilogram (US$672 per ounce).
Theforecast for the September quarter is as follows:
Gold produced - 3,910 kilograms (125,700 ounces)
Total cash costs* - R190,000 per kilograms (US$740 per ounce)
Capital expenditure* - R245 million (US$31 million)
Notional cash expenditure* - R261,000 per kilogram (US$1,015 per ounce)
* Based on an exchange rate of US$1 = R8.00.
The decrease in gold production is due to the rehabilitation of the steel work
on Main shaft which should be concluded by the end of the December quarter. The
increase in total cash cost arises due to the above as well as the increase in
electricity and increased labour costs due to the annual wage increase
effective 1 July.
Beatrix
June March
2008 2007
Gold produced - kg 3,678 2,542
- 000`ozs 118.3 81.7
Yield - g/t 4.7 3.9
Total cash costs - R/kg 119,467 160,071
- US$/oz 478 668
Notional cash - R/kg 166,096 227,852
expenditure - US$/oz 665 951
Gold production at Beatrix increased by 45 per cent from 2,542 kilograms
(81,700 ounces) in the March quarter to 3,678 kilograms (118,300 ounces) in the
June quarter. This is higher than the previous guidance due to improved quality
mining. Tons milled increased from 656,000 tons to 778,000 tons and the yield
increased from 3.9 grams per ton in the March quarter to 4.7 grams per ton for
the June quarter.
The overall increase in gold and tonnage throughput is as a result of the
national power availability returning to more favourable levels and the slow
start-up after the Christmas break in the March quarter. An improved mine call
factor (MCF) also contributed to the increased gold output. The impacts of the
additional holidays at the end of April and beginning of May 2008 were well
managed with little effect on production. However, volumes at the West section
have been affected by ongoing industrial unrest at that operation.
The initiation of a focused MCF campaign coupled with education, training and a
mine clean-up to recover gold from previous underground process inefficiencies
resulted in significant benefits during the June quarter. The overall MCF
improved quarter on quarter from 68 per cent to 93 per cent resulting in a 20
per cent improved yield. The benefits of the project associated with
implementing appropriate changes to drilling, blasting and explosives usages,
coupled with the ongoing clean-up strategy will continue into the future.
The development volumes also showed a positive turnaround quarter on quarter,
with total main development increasing by 4 per cent to 9,653 metres and main
on-reef development at 1,959 metres, which is consistent with the previous
quarter. Main development values were 22 per cent lower at 810 cm.g/t as a
result of the majority of raises traversing lower grade areas as anticipated by
local geological models.
Operating costs quarter on quarter increased by 7 per cent, from R429 million
(US$57 million) to R460 million (US$59 million). The increase in costs was
mainly due to higher employee incentives as a result of the higher production
in the June quarter, increased material usage and higher electricity costs.
Total cash costs decreased by 25 per cent from R160,071 per kilogram in the
March quarter to R119,467 per kilogram in the June quarter, mainly due to
higher gold output. In US dollar terms total cash costs decreased by 28 per
cent from US$668 per ounce to US$478 per ounce.
Beatrix posted an operating profit of R372 million (US$50 million) for the
quarter compared with R146 million (US$19 million) in the March quarter.
Capital expenditure was similar quarter on quarter at R151 million (US$20
million) and includes mainly ore reserve development (R79 million), progress on
the 3 shaft project (R27 million), capital development at the West and South
sections (R7 million) and residential upgrades (R12 million).
Notional cash expenditure improved from R227,852 per kilogram (US$951 per
ounce) to R166,096 per kilogram (US$665 per ounce).
Theforecast for the September quarter is as follows:
Gold produced - 3,650 kilograms (117,300 ounces)
Total cash costs* - R130,200 per kilograms (US$505 per ounce)
Capital expenditure* - R168 million (US$21 million)
Notional cash expenditure* - R181,600 per kilogram (US$705 per ounce)
* Based on an exchange rate of US$1 = R8.00.
The increase in total cash cost is mainly as a result of the annual wage
Increases, the additional electricity price increase, and the slight decrease in
production.
International Operations
Ghana
Tarkwa
June March
2008 2008
Gold produced - 000`ozs 168.6 165.1
Yield - heap leach - g/t 0.8 0.7
- CIL plant - g/t 1.6 1.5
- combined - g/t 1.0 0.9
Total cash costs - US$/oz 443 436
Notional cash
expenditure - US$/oz 856 762
Gold production for the June quarter increased by 2 per cent from 165,100
ounces to 168,700 ounces. The increase in production was mainly due to an
increase in recovery from the Heap leach facilities.
Total tons mined, excluding capital stripping, reduced marginally from
20.7 million tons to 20.6 million tons. Ore mined was similar at 4.9 million
tons. The mined grade at 1.29 grams per ton was an improvement on last
quarter`s 1.24 grams per ton due to increased tons mined from the higher
grade southern portion of Teberebie pit.
The overall strip ratio for the quarter was lower at 4.37 compared with
4.96 in the March quarter, as lower volumes of capital waste strip were mined
as a result of lower haulage efficiency, due to the impact of radial tyre
shortages.
Total tons processed were down by 296,000 tons to 5.47 million tons mainly due
to four less processing days in the quarter and national power outages. Tons
processed at the heap leach facilities decreased to 4.07 million tons compared
with 4.32 million tons for the March quarter. Heap Leach yield for the quarter
was 0.75 grams per ton compared with 0.68 for the March quarter mainly due to
improved recoveries from the South heap due to moving to first lift. The heap
leach sections produced 97,700 ounces, 3 per cent higher than the March
quarter.
The total feed to the CIL plant was 1.40 million tons compared with
1.45 million tons in the March quarter. The CIL yield was 1.6 grams per ton
against 1.5 for the March quarter mainly due to the higher head grade
mined. The CIL plant produced 70,900 ounces in the June quarter compared
with 70,400 ounces in the previous.
Operating costs, including gold-in-process movement, increased from US$72
million (R533 million) in the March quarter to US$76 million (R585 million) for
the June quarter. The operating costs increase was mainly attributable to price
increases on fuel, explosives, MARC service contract, tyres purchased on the
spot market and increased contractor hire due to a decrease in mining
efficiencies as a result of radial tyre shortages. Consequently total cash
costs increased marginally from US$436 per ounce to US$443 per ounce.
Operating profit was 5 per cent lower at US$75 million (R575 million) compared
with US$79 million (R582 million) in the March quarter.
Capital expenditure increased from US$54 million (R397 million) to US$69
million (R523 million) for the quarter, with expenditure on the Phase 5 heap
leach project and the CIL expansion project at US$8 million and US$31 million
respectively. Expenditure on the pre- stripping at the Teberebie cutback (US$11
million) continued.
The CIL expansion continues on schedule to meet full production by the end of
December 2008. Both the September and December quarters production will be
affected by construction works on the new mill, specifically tie-in activities
between the existing complex and the expansion steel and piping. It may be
further affected by overburden haulage difficulties experienced during the
rainy season.
Notional cash expenditure increased from US$762 per ounce to US$856 per ounce
due to the increase in costs and capital expenditure.
The forecast for the September quarter is as follows:
Gold produced - 159,000 ounces
Total cash costs - US$550 per ounce
Capital expenditure - US$68 million
Notional cash expenditure - US$970 per ounce
The decrease in gold production is due to lower grade areas scheduled to be
mined and the CIL expansion work that will constrain CIL availability. Total
cash costs and notional cash expenditure is forecast to increase due to the
lower production along with increases in power tariff rates, diesel price and
other commodities.
Damang
June March
2008 2008
Gold produced - 000`ozs 50.0 52.6
Yield - g/t 1.5 1.3
Total cash costs - US$/oz 578 546
Notional cash
expenditure - US$/oz 773 732
Gold production for the June quarter at 50,000 ounces was 5 per cent lower than
the March quarter`s 52,600 ounces. This was attributable to lower mill
throughput which decreased from 1.23 million tons to 1.06 million tons. This
was partly offset by an increase in head grade for the quarter from 1.4 grams
per ton to 1.6 grams per ton due to more higher grade ore mined from the Damang
pit cutback.
Total tons mined, excluding capital stripping, was 6.53 million tons, slightly
less than the previous quarter`s 6.55 million tons. Ore mined increased 15 per
cent, from 1.08 million tons to 1.24 million tons with a resultant decrease in
the strip ratio from 5.04 in March quarter to 4.29 in the June quarter.
The decrease in the mill throughput was mainly as a result of a major rebuild
of the pebble crusher and a change in the plant feed blend - more hard, fresh
material was treated at a higher grade.
Operating cost, including gold-in-process adjustments was US$29 million (R225
million), similar to the March quarter. Total cash cost increased from US$546
per ounce to US$578 per ounce reflecting the reduction in gold produced and the
increased costs associated with mining the higher grade Damang pit cutback
material.
Operating profit for the June quarter at US$16 million (R120 million) is
slightly lower than the US$19 million (R138 million) achieved in the March
quarter due to the lower gold price.
Capital expenditure at US$6 million (R45 million) is similar to the previous
quarter. The majority of this expenditure was invested in a tailings facility
and mill sundries.
Notional cash expenditure increased from US$732 per ounce to US$773 per ounce
due to the lower production.
The forecast for the September quarter is as follows:
Gold produced - 50,000 ounces
Total cash costs - US$670 per ounce
Capital expenditure - US$6 million
Notional cash expenditure - US$800 per ounce
Total cash costs and notional cash expenditure is forecasted to increase due to
increases in power tariff rates, diesel price and other commodities.
Australia
St Ives
June March
2008 2008
Gold produced - 000`ozs 101.5 103.9
Yield - heap leach - g/t 0.5 0.6
- milling - g/t 2.5 2.4
- combined - g/t 1.8 1.7
Total cash costs - A$/oz 702 655
- US$/oz 663 592
Notional cash
expenditure - US$/oz 971 840
Gold produced decreased from 103,900 ounces in the March quarter to 101,500
ounces in the June quarter. This was mainly due to lower throughput and
recoveries at the heap leach.
Gold produced from the Lefroy mill increased from 91,300 ounces to 92,600
ounces. Tons milled decreased slightly from 1.19 million tons to 1.17 million
tons. However, this was offset by an increase in yield from 2.4 grams per ton
to 2.5 grams per ton due to the higher grade from Belleisle and Cave Rocks
first stope production.
Gold produced from heap leach decreased from 12,600 ounces in the March quarter
to 8,900 ounces in the June quarter. Tons treated from heap leach decreased
from 698,000 tons to 567,000 tons and recoveries decreased from 69 per cent to
52 per cent. Yield decreased from 0.6 grams per ton to 0.5 grams per ton due to
a reduction in the proportion of oxide ore mined from the Leviathan pit cutback
as depth increases.
At the open pit operations 1.2 million tons of ore were mined for the quarter,
compared with 1.4 million tons in the March quarter. Ore volumes increased from
the Cave Rocks, Pluton, Revenge and Blue Lode pits, while less ore was mined
from the Leviathan and NRK pits.
The Bahama pit was completed. Grade increased from 1.5 grams per ton to 1.9
grams per ton. The average strip ratio including capital waste was 5.8 in the
June quarter, compared with 5.4 in the March quarter.
At the underground operations 183,000 tons of ore were mined at 5.2 grams per
ton for the quarter, compared with 217,000 tons at 5.0 grams per ton in the
March quarter. The reduction in volume was due to mechanized remnant mining at
East Repulse and Britannia being completed, partially offset by the new
underground operations at Belleisle and Cave Rocks which commenced with stoping
during June 2008. At Argo, the paste fill delays reported in the prior quarter
have 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$70
million (R472 million) in the March quarter to A$73 million (R527 million) in
the June quarter. This increase was mainly due to higher open pit waste charges
due to mining more open pit ounces quarter on quarter. Total cash costs
increased from A$655 per ounce (US$592 per ounce) to A$702 per ounce (US$663
per ounce).
Operating profit decreased from A$35 million (R231 million) to A$23 million
(R173 million) mainly due to the lower production together with the lower gold
price.
Capital expenditure increased from A$30 million (R199 million) in the March
quarter to A$36 million (R259 million) in the June quarter. Mine development
capital of A$25 million (R183 million) included increased development activity
at the Cave Rocks and Belleisle underground mines, the continuation of
development of the Argo mine and waste stripping at the future Agamemnon South
and Grinder pits.
Infrastructure development continued at Cave Rocks and Belleisle.
Exploration expenditure was marginally higher at A$7 million (R51 million).
Notional cash expenditure increased from US$840 per ounce to US$971 per ounce
due to the increase in capital expenditure and the lower production.
The forecast for the September quarter is as follows:
Gold produced - 108,000 ounces
Total cash costs - US$700 per ounce
Capital expenditure - US$35 million
Notional cash expenditure - US$1,020 per ounce
The gold production increase is in line with increased production from the new
underground mines at Cave Rocks and Belleisle.
Development of these new underground mines will continue to remain a focus area
to return production to between 115,000 ounces and 120,000 ounces per quarter
from the December quarter. Total cash costs and notional cash expenditure is
forecast to increase as a result of St Ives achieving the cumulative 3.3
million ounces of production which triggers the volume based royalty included
as part of the St Ives acquisition. The royalty is payable at a rate of 4 per
cent of "revenue less refining costs".
Agnew
June March
2008 2008
Gold produced - 000`ozs 54.6 49.0
Yield - g/t 5.0 4.6
Total cash costs - A$/oz 479 523
- US$/oz 452 473
Notional cash
expenditure - US$/oz 662 577
Gold production increased 11 per cent from 49,000 ounces in the March quarter
to 54,600 ounces in the June quarter. The 3 per cent increase in processing
volumes from 329,000 tons in the March quarter to 339,000 tons in the June
quarter, was complemented by an 9 per cent increase in yield, from 4.6 grams
per ton to 5.0 grams per ton. The higher yield was due to an improved
performance from Waroonga underground which replaced low grade Songvang
stockpiled ore.
Ore mined from underground increased 25 per cent from 132,000 tons at 8.1 grams
per ton in the March quarter to 165,000 tons at a grade of 10.6 grams per ton
in the June quarter. Increased emphasis was placed on stope production from the
high grade Kim South orebody, whilst ore reserve development was increased at
the moderate grade Main Lode. Ore reserve development was recommenced at Kim
South to establish a new stoping block.
Waroonga produced in excess of 60,000 tons in the month of June, setting a new
production record.
Total capital and ore reserve development increased 33 per cent compared with
the March quarter.
Operating costs, including gold-in-process movements, decreased 7 per cent from
A$29 million (R194 million) in the March quarter to A$27 million (R197 million)
in the June quarter. Mining costs increased by 21 per cent or A$3 million (R20
million) due to the 25 per cent increase in ore production. This was offset by
a reduction in gold-in-process charges, from A$6 million (R40 million) to less
than A$1 million (R7 million) as a result of a reduction in the draw-down of
Songvang stockpiles, which were replaced with the increased underground ore
mined. Total cash costs decreased by 8 per cent from A$523 per ounce (US$473
per ounce) in the March quarter to A$479 per ounce (US$452 per ounce) in the
June quarter.
Operating profit increased from A$22 million (R141 million) in the March
quarter to A$26 million (R179 million) in the June quarter due to the increase
in gold production.
Capital expenditure for the June quarter was A$13 million (R91 million),
compared with A$8 million (R56 million) in the March quarter.
This increase was due to the payment of A$7 million under the terms of the new
accommodation agreement for the single persons quarters (SPQ) and for the
construction of an additional 20 SPQ rooms to meet operational requirements.
The sum total of underground capital development, extensional and additional
exploration was marginally lower at A$5 million (R37 million).
Notional cash expenditure increased from US$577 per ounce to
US$662 per ounce mainly due to the increase in capital expenditure.
The forecast for the September quarter is as follows:
Gold produced - 50,000 ounces
Total cash costs - US$510 per ounce
Capital expenditure - US$11 million
Notional cash expenditure - US$720 per ounce
The reduction in gold production is due to the completion of high grade stopes
at Kim South, replaced by a combination of lower grade Kim South and Main Lode
ore. Total cash costs and notional cash expenditure is forecast to increase by
around 10 per cent due to the lower gold production.
Year ended 30 June 2008 compared with year ended 30 June 2007
The Venezuelan assets (including Choco 10) which were sold during the December
quarter are classed as discontinued operations for accounting purposes, and as
such figures in this report have been restated to exclude results from this
operation.
Group attributable gold production decreased 8 per cent from 3.97 million
ounces for the year ended June 2007 to 3.64 million ounces produced in
financial 2008. These production results and the results below exclude all
discontinued operations.
At the South African operations gold production decreased from 2.65 to 2.42
million ounces as all operations were affected by the power disruptions during
the second half of the financial year which reduced gold output by around 0.2
million ounces when compared with the previous year. Driefontein decreased by 9
per cent to 0.93 million ounces mainly due to lower volumes mined and
processed. Kloof decreased by 11 per cent to 0.82 million ounces, also due to
lower volumes mined. Gold production at Beatrix decreased by 19 per cent to
0.44 million ounces due to lower volumes and a low MCF. Part of this shortfall
was offset by South Deep, control of which was acquired on 1 December 2006,
which produced 0.23 million ounces in financial 2008 compared with 0.17 million
ounces for the 7 months to end June 2007.
At the international operations total managed gold production decreased from
1.58 million ounces in financial 2007 to 1.46 million ounces in financial 2008.
In Ghana, Damang`s gold production increased 3 per cent to 0.19 million ounces
due to an increase of available high grade fresh ore tonnages mined and
processed from the Damang pit cutback. Tarkwa was 7 per cent lower at 0.65
million ounces mainly due to exceptionally high seasonal rainfall during the
year and lower grades. In Australia, St Ives decreased by about 14 per cent
year on year to 0.42 million ounces. The decrease at St Ives was due to a
reduction of high grade underground ore from Conqueror, closed at the end of
financial 2007, and scheduled replacement ore from Cave Rocks and Belleisle not
coming into production during the year as planned. At Agnew, the decrease was 4
per cent to 0.20 million ounces due to lower grades at Waroongas, Kim South and
Main Lode.
Revenue increased by 18 per cent in rand terms (increased 17 per cent in US
dollar terms) from R19,434 million (US$2,699 million) to R23,010 million
(US$3,165 million). The higher average gold price of R190,623 per kilogram
(US$816 per ounce) compared with R147,595 per kilogram (US$638 per ounce)
achieved in financial 2007 more than offset the lower production. Exchange
rates had little effect on the gold price in rand terms against the US dollar
weakening from an average of US$1 = R7.20 to US$1 = R7.27, or 1 per cent.
Operating costs, including gold-in-process movements, increased from R11,694
million (US$1,624 million) to R13,969 million (US$1,922 million), an increase
of R2,275 million (US$298 million) or 19 per cent.
This increase was partly due to the acquisition of South Deep which was owned
for the full 2008 financial year compared with seven months for financial 2007,
and added R530 million (US$74 million) to costs. The increase in costs
excluding the increase in South Deep amounted to 15 per cent, with the majority
due to above inflation wage increases, significant price increases of important
inputs - in particular fuel, steel and cyanide at all the operations and
increased power costs in Ghana. Added to this was the increase in volumes
required to partially offset the values mined as grades on average decreased
from a combined average of 2.6 grams per ton to 2.4 grams per ton year on year
for the Group. Total cash costs for the Group in rand terms, increased from
R86,623 per kilogram (US$374 per ounce) to R111,315 per kilogram (US$476 per
ounce) due to the above factors.
At the South African operations operating costs increased by 15 per cent from
R7,478 million to R8,611 million for the year. The increase excluding South
Deep was 9 per cent. This was due to the above inflation wage increases, an
increase in mine maintenance and the increase in certain input costs such as
steel, timber, chemicals and food, partially offset by the cost saving
initiatives implemented over the year. Unit cash costs at the South African
operations increased by 26 per cent from R86,908 to R109,117 per kilogram
(US$375 to US$467 per ounce) due to the inclusion of South Deep, which averaged
R169,889 per kilogram (US$727 per ounce) for the year, the cost increases at
the other South African operations and the lower production. Excluding South
Deep cash costs increased from R83,511 to R102,667 per kilogram (US$361 to
US$439 per ounce) an increase of 23 per cent.
At the international operations, unit cash costs increased from US$372 per
ounce to US$492 per ounce, mainly due to the 8 per cent lower production
together with higher power costs in Ghana, increased maintenance costs of the
mining fleet at Tarkwa, increased costs at Agnew due to increased processing of
the Songvang stockpile and the combined effect of higher stripping ratios at
Tarkwa (from 4.0 to 4.7) and increased cost of inputs driven by the commodities
boom.
Operating profit increased from R7,740 million (US$1,075 million) to R9,041
million (US$1,244 million), with the Group benefiting from the higher gold
price in all currencies.
After accounting for taxation, sundry costs, exceptional items which included
the sale of Essakane and Choco 10, and restructuring costs at South Deep, net
earnings were R4,458 million (US$613 million) for financial 2008, compared with
R2,363 million (US$328 million) in the previous year.
Earnings excluding gains and losses on foreign exchange, financial instruments,
exceptional items and discontinued operations amounted to R2,930 million
(US$403 million) this year compared with R2,298 million (US$319 million) in
financial 2007.
Capital and development projects
Cerro Corona
During the June quarter, two million man hours were worked with three lost time
accidents and eight medically treated incidents, all involving construction
personnel. Management has installed several programmes, including significant
contractor cost penalties to reverse the above trend. Project staffing levels
peaked during the quarter at 3,100 per day but have now declined to 1,700
reflecting completion of significant portions of the work. There were no
reportable environmental incidents during the period.
First rock was put through the mill during the last week in July. First
concentrate will be produced by the middle of August and the first shipment of
concentrate is scheduled for early September.
Final operational permitting activities advanced during the quarter including
approval of the third party 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.
Regulatory agencies were also notified in late May that process facility
construction was essentially complete and the requisite inspection for issuing
the Beneficiation Concession was arranged for late July.
Mining activities focused on generating construction material for the Las
Gordas tailing dam (1.46 million tons) and in further oxide (0.63 million tons)
and waste mining (0.73 million tons) to enable additional sulphide ore mining
(0.14 million tons) by quarter`s end. The accumulated oxide ore in stockpiles
was 4.06 million tons with an average gold grade of 1.45 grams per ton.
Accumulated mixed sulphide ore in stockpile is 0.97 million tons with average
gold and copper grades of 1.32 grams per ton and 0.52 per cent, respectively.
This material represents eight weeks of plant production at full capacity.
Total quarter unit mining costs were US$2.18 per ton which is 4 per cent lower
than the previous quarter despite 12 per cent less tons being mined quarter on
quarter.
Cumulative construction progress at June quarter end was 90.5 per cent. The Las
Gordas Stage I Starter Dam embankment construction productivity continued to
improve, leveraging prior period experience as well as diminishing rainfall.
The Las Gordas starter dam completion is now forecast for mid-first quarter
financial 2009. In accordance with the water storage plan, approximately
380,000 cubic metres of water is currently stored in the reservoir to support
the plant start-up and continued operations during the dry season. The TMF
return water system and tailing pipeline construction are essentially complete
and are entering commissioning.
The projects completed during the quarter, include:
Installation of a capacitor bank at Trujillo Norte Substation. This unit will
require addition of a harmonic filter to reach full design specifications;
Mechanical completion of grinding and flotation circuits;
Mechanical completion of concentrate filtration and storage areas;
Mechanical completion of all port facilities;
Establishment of project-operational transition teams for all aspects of
Cerro Corona on a go forward basis.
Commissioning activities have encountered some delays due to late completion of
outstanding construction and pre-commissioning activities, the need for
significant revisions to the control logic design related to the mills and the
late arrival of vendor representatives to support construction and
commissioning activities.
Cumulative project commitments reached US$501 million. Project forecast cost at
completion increased during the period to a value of between US$540 to US$550
million, for the following reasons:
The extension of time required for construction completion including
time-dependent activities, such as owner`s team, engineering consultant labour
and support costs,
Additional costs due to the under estimation of project quarry required for
the tailings management facility
Late identification of significant numbers of minor works for correction of
design errors and omissions, construction deficiencies, or modifications
required to preclude safety hazard issues,
Contractor claims for extensions in time for factors beyond their control
including increase in contractual scope and impacts for loss of productivity,
related to late design changes and materials shortages.
Essentially all construction activities since February 2007 have been performed
on a "time and material" or "day rate basis" in a way to accelerate the
construction completion date.
The forecast for the September quarter is as follows:
Gold produced - 42,000 equivalent ounces
Total cash costs - US$270 per ounce
Capital expenditure - US$79 million
Notional cash expenditure - US$2,240 per ounce
South Deep Project
June March
2008 2008
Gold produced - kg 1,167 1,637
- 000`ozs 37.5 52.6
Yield - underground - g/t 7.4 6.4
- combined - g/t 6.0 5.9
Total cash costs - R/kg 250,300 194,258
- US$/oz 1,002 811
Notional cash
expenditure - R/kg 443,702 319,426
- US$/oz 1,776 1,334
Gold production at South Deep decreased by 29 per cent from 1,637 kilograms
(52,600 ounces) in the March quarter to 1,167 kilograms (37,500 ounces) in the
June quarter, in line with the previous guidance.
The decrease in gold production was mainly due to the stopping of all VCR
mining above 95 level, safety related stoppages due to three fatal accidents as
well as the decision taken to suspend mining at 95 2 West and 95 3 West to
support the access ramp. As a result of the above, underground tons milled
decreased from 250,000 tons in the March quarter to 153,000 tons in the June
quarter, the effect of the lower tonnage on gold production was partially
offset by an increase in underground yield from 6.4 grams per ton to 7.4 grams
per ton.
Surface ore processed increased from 26,000 tons to 42,000 tons in the June
quarter but at a lower grade as surface stockpiles are now mostly depleted.
Development decreased by 20 per cent for the June quarter from 1,231 metres to
989 metres. Development in phase 1 sub 95 level remained constant at 236 metres
for the June quarter, whilst the current mine decreased from 275 metres to 64
metres. This drop in metres in current mine development was due to the stopping
of development on 87, 90 and 95 levels, concurrent with the stoppage of the
VCR. Trackless on-reef metres increased for the quarter by 27 per cent whilst
the trackless off-reef metres reduced from 160 metres to 9 metres.
Operating costs at R302 million (US$39 million) decreased by 8 per cent
compared with the March quarter`s cost of R327 million (US$44 million). This
was mainly due to the lower production levels and labour cost reductions.
However, as a result of the decrease in gold production the total cash cost
increased by 29 per cent from R194,258 per kilogram (US$811 per ounce) in the
March quarter to R250,300 per kilogram (US$1,002 per ounce) in the June
quarter.
An operating loss of R39 million (US$6 million) was realised in the June
quarter compared with the March quarter`s operating profit of R37 million (US$5
million). The lower operating cost was more than offset by the decrease in
revenue.
Capital expenditure increased from R196 million (US$26 million) to R216 million
(US$28 million) due to the increase in equipment for mechanised development and
the emergency power generation project.
Notional cash expenditure increased by 39 per cent from R319,426 per kilogram
(US$1,334 per ounce) to R443,702 per kilogram (US$1,776 per ounce) due to the
reduced production.
Theforecast for the September quarter is as follows:
Gold produced - 980 kilograms (31,500 ounces)
Total cash costs* - R309,000 per kilograms (US$1,200 per ounce)
Capital expenditure* - R245 million (US$31 million)
Notional cash expenditure* - R571,000 per kilogram (US$2,220 per ounce)
* Based on an exchange rate of US$1 = R8.00.
The decrease in gold production is due to the loss of production while
completing the rehabilitation of the primary support on the access ramps on the
suspended 95 2 West and 95 3 West. South Deep will focus on speeding up
development of the ore body, completion of the Twin shaft infrastructure and
increasing the rate of de-stress mining, with the aim of increasing production
by the December quarter to approximately 1,500 kilograms (48,200 ounces) per
quarter from current mechanised production areas. The increase in total cash
costs is due to the lower production, annual wage increases and electricity
price increases.
Exploration and corporate development
Greenfields Exploration
Greenfields exploration continues on a portfolio of nine projects in seven
countries (Australia, DRC, Mali, Peru, Chile, Dominican Republic and the USA).
In addition, Gold Fields initiated generative exploration in Canada and Ghana
in the June quarter. The company also has exploration interests in China
through an alliance with Sino Gold Mining Ltd. (ASX: "SGX"), in Indonesia
through the Nabire Bakti joint venture operated by Freeport McMoran and Rio
Tinto, and in Kyrgyzstan, Gold Fields is in the process of finalising an
earn-in joint venture agreement with Orsu Metals Corporation (TSX: "OSU" and
AIM: "OSU") formerly Lero Gold Corp. on Orsu`s Talas copper-gold project. A
total of 70,400 metres of drilling was completed on eighteen high quality
targets within six projects during the financial year.
In Australia, target definition and initial exploration drilling continued on
three early stage projects (Mt Carlton joint venture, Gobondery joint venture
and Delamarian). The primary focus is the Mt Carlton joint venture in Northeast
Queensland, where Gold Fields is earning a 51 per cent stake in eight
exploration tenements totaling 1,200 square kilometers owned by Conquest Mining
Limited (ASX: "CQT"), surrounding Conquest`s Silver Hill discovery. Exploration
completed this quarter on Mt Carlton includes airborne electromagnetic (EM)
geophysical surveys and a ground gravity survey over most of the property, grid
soil geochemical sampling, and IP-Resistivity surveys on selected target areas.
Drilling consists of fifteen pre-collared diamond holes (3,924 metre including
1,157 metre reverse circulation (RC)).
Diamond drilling of the EM chargeability at the Capsize Target immediately east
of Silver Hill has been completed with two encouraging drill intersections with
anomalous Au and Cu values, suggesting that the Silver Hill mineralised system
continues to the east. Assays are awaited for most of the holes completed at
Capsize.
Significant progress was achieved on the induced polarization (IP) surveys at
the Powerline Target with a strong chargeability-resistivity high coincident
with a zoned copper to copper-zinc to zinc-lead soil geochemical anomaly which
was identified in earlier work. This anomaly is also coincident with a
sub-circular topographic depression, a discrete gravity high and surface
alteration suggesting a buried porphyry or high sulphidation epithermal body at
shallow depth. Initial drill testing of the Powerline Target is scheduled
during the September quarter 2008. The upcoming work programme also includes
follow-up drilling at the Capsize Target, completion of the grid soil sampling
programme over all remaining targets and completion of a property- wide target
generation exercise based on all regional data sets.
In the southern DRC, fieldwork resumed in early June at the 80 per cent owned
Kisenge Project with the completion of an airborne magnetics geophysical survey
and regional stream sediment sampling over the project`s 18,330 square
kilometres of exploration licenses.
Soil geochemical results have defined additional anomalism in the
Kajimba-Mpokoto basin area. Based on positive correlation between IP
chargeability anomalism with gold mineralisation encountered in previous
drilling at the Mpokoto prospect (best intersection: 50 metre at 2.0 grams per
ton Au), additional IP surveys are planned to cover the south extension of the
Mpokoto mineralised trend. Two new target areas have also been defined by
recent assays of historical termite mound samples. Drilling will be carried out
on these targets during the next two quarters. Discussions are ongoing with the
DRC Government regarding their review of the mining convention.
At the Sankarani joint venture in south-western Mali, where Gold Fields is
earning-in to an initial 51 per cent interest in a project currently operated
by partner Glencar Mining plc (AIM: "GEX"), seventeen targets were prioritised
for follow-up work following the completion of a high resolution airborne
geophysical survey in March 2008. A total of 18,486 metres of rotary air blast
(RAB) drilling has been completed to date on five Priority 1 targets to test a
cumulative prospective strike length of 55 kilometers. Assay results from
drilling the Sindo target outlined gold-in-bedrock anomalism coinciding with a
northeast-southwest shear-zone. Visible gold was reported in pan concentrates
recovered from the Fingouana and Kabaya South RAB holes, with intercepts of up
to 9 metres at 6.5 grams per ton Au. The upcoming work programme will include
trenching and 18,000 metres of RAB/RC and diamond drilling to further test the
five priority targets. An additional 20,000 metres of RAB drilling is planned
for target definition over the twelve other Priority 2 and 3 areas not yet
tested. The above should be completed by the December quarter.
Gold Fields and Orsu Metals Coporation (TSX: "OSU" and AIM:
"OSU") previously Lero Gold Corp, are in the process of finalising a joint
venture agreement on the Talas Copper-Gold Porphyry Project in Kyrgyzstan which
will grant Gold Fields the right to earn-in up to a 70 per cent interest. The
partners have also agreed to an aggressive exploration programme and budget.
The work programme will include additional deep penetrating IP geophysical
surveys which have been successful in tracing the extensions of the Taldy
Central porphyry prospect under cover to the east and west, some 17,000 metres
of infill and step-out diamond drilling at the Taldy Central prospect and
initial drilling on several other promising targets in the district.
Near Mine Exploration
In Australia, Gold Fields continues to aggressively explore near mine targets
at its Agnew and St Ives operations. At Agnew, new targets identified by IP
geophysical surveys have highlighted untested potential and at St Ives, three
drill rigs are currently drilling out a potential underground resource.
In Ghana, a new targeting exercise assisted by regional geophysical surveys has
produced a number of targets in areas surrounding the Damang mining lease.
Resource to reserve conversion will be the focus of near mine exploration
within the lease.
In Peru, at the Consolidada de Hualgayoc joint venture with Compania de Minas
Buenaventura SA (NYSE: "BVN"), near mine exploration continues in the
well-endowed Hualgayoc District surrounding the new Cerro Corona operation.
During the March quarter, initial drilling was completed on the Quijote
porphyry copper-gold target but results were disappointing. The Titan-Arabe
copper-gold target will be the next prospect to be drill-tested once community
access agreements are signed. District-wide geophysical surveys including
airborne magnetic, radiometrics and EM surveys and ground-based gravity surveys
have been budgeted to acquire regional data sets for targeting.
Corporate Development
Gold Fields subscribed for a private placement of 11 million shares in Sino
Gold Limited (ASX: "SGX") during the June quarter and subsequent to year end
placement of a further 2.6 million shares resulting in a net placement for the
year of 13,586,378 shares at an average price of A$5.02/share, for a total
consideration of A$68,261,890. This acquisition increased Gold Fields`
ownership in Sino Gold to 19.9 per cent. Gold Fields and Sino Gold agreed to
reduce the project entry hurdle in its China-wide exploration alliance to 3Moz,
substantially broadening the scope of the alliance. Gold Fields also followed
its rights in the Accelerated Renounceable Entitlements Offer acquiring another
6,515,488 shares at a price of A$4.00 per share for a further consideration of
A$26,061,952.
In April 2008, Gold Fields acquired 25,887,491 Conquest Mining Limited (ASX:
"CQT") shares at an average price of A$0.35 per share, which increased its
holding to 19.1 per cent of Conquest.
Gold Fields also finalised a C$5 million placement in Lero Gold Corp, now Orsu
Metals Corporation (TSX: "OSU" and AIM: "OSU"), acquiring 5,882,355 shares at
C$0.8 per share, which brings its interest to around 7.6 per cent.
Dividend
In line with the company`s policy of paying out 50 per cent of its
earnings, subject to investment opportunities, a final dividend has been
declared payable to shareholders as follows:
- final dividend number 69: 120 SA cents per share
- last date to trade cum-dividend: Friday 15 August 2008
- sterling and US dollar conversion date: Monday 18 August 2008
- trading commences ex-dividend: Monday 18 August 2008
- record date: Friday 22 August 2008
- payment date: Monday 25 August 2008
Share certificates may not be dematerialised or rematerialised between Monday,
18 August 2008 and Friday, 22 August 2008, both dates inclusive.
Outlook
In the September quarter attributable gold production is forecast to decrease by
around 5 per cent. Notional cash expenditure is forecast at R245,000 per
kilogram (US$950 per ounce) and total cash costs at R152,000 per kilogram
(US$590 per ounce) at an exchange rate of US$1 = R8.00.
At the South African operations gold production is forecast to decrease by 13
per cent due to the safety intervention at Kloof and the rehabilitation at
South Deep explained earlier. Accordingly, cash costs and notional cash
expenditure is forecast at US$610 per ounce and US$860 per ounce respectively.
At the international operations production should increase by 9 per cent mainly
due to the first production from Cerro Corona. Cash costs and notional cash
expenditure are forecast at US$570 per ounce and US$1,060 per ounce
respectively.
It is anticipated that production will be at around an annualized 4 million
attributable ounces by early in calendar 2009. South Africa will contribute
approximately 2.30 million ounces, dependant on the outcome of the Kloof Main
shaft rehabilitation, with the balance coming from the international operations.
Ghana
will contribute 0.72 million attributable ounces, Austrialian 0.60 million
ounces and approximately 0.38 million attributable equivalent ounces from Cerro
Corona.
Notional cash expenditure at this time is forecast at US$725 per ounce at an
exchange rate of US$1 = R8.00.
Basis of accounting
The unaudited results for the quarter and year have been prepared on the
International Financial Reporting Standards (IFRS) basis. The detailed
financial, operational and development results for the June 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.
Audit review
The year-end results have been reviewed in terms of Rule 3.23 of the listing
requirements of JSE Limited by the Company`s auditors, PricewaterhouseCoopers
Inc. Their unqualified review opinion is available upon request from the
Company Secretary and on the web site.
N.J. Holland
Chief Executive Officer
1 August 2008
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand Quarter
June March June
2008 2008 2007
Revenue 6,452.4 6,109.2 5,067.1
Operating costs, net 3,731.1 3,543.3 3,098.3
- Operating costs 3,747.5 3,502.6 3,213.7
- Gold inventory change (16.4) 40.7 (115.4)
Operating profit 2,721.3 2,565.9 1,968.8
Amortisation and depreciation 777.9 713.9 866.1
Net operating profit 1,943.4 1,852.0 1,102.7
Net interest paid (46.4) (88.4) (59.2)
(Loss)/gain on foreign exchange (7.4) 38.4 (42.6)
Gain/(loss) on financial instruments 1.9 262.3 39.3
Other (75.8) (32.3) (9.8)
Exploration (107.0) (57.5) (89.1)
Profit before tax and exceptional items 1,708.7 1,974.5 941.3
Exceptional (loss)/gain (94.8) (41.6) 36.5
Profit before taxation 1,613.9 1,932.9 977.8
Mining and income taxation 663.7 566.5 371.0
- Normal taxation 555.4 349.4 155.8
- Deferred taxation 108.3 217.1 215.2
Net profit from continued operations 950.2 1,366.4 606.8
Income from discontinued operations - (10.9)
Profit on sale of Venezuelan assets - -
Net profit 950.2 1,366.4 595.9
Attributable to:
- Ordinary shareholders 842.9 1,248.0 527.5
- Minority shareholders 107.3 118.4 68.4
Exceptional items:
Profit on sale of investments 1.5 - 5.6
Profit on sale of assets (0.8) 3.2 32.4
South Deep restructuring (65.2)
Driefontein 9 shaft closure costs 20.8 (44.8) -
Impairment of assets (51.2) (1.5)
Other 0.1 - -
Total exceptional items (94.8) (41.6) 36.5
Taxation 31.0 18.7 (13.6)
Net exceptional items after tax and
minorities (63.8) (22.9) 22.9
Net earnings 842.9 1,248.0 527.5
Net earnings per share (cents) 129 191 81
Diluted earnings per share (cents) 120 178 77
Headline earnings 880.6 1,245.7 506.3
Headline earnings per share (cents) 135 191 78
Net earnings excluding gains and losses
on foreign exchange, 911.1 1,008.6 488.4
financial instruments, exceptional
items and discontinued operations
Net earnings per share excluding
gains and losses on foreign 140 155 75
exchange, financial instruments,
exceptional items and discontinued
operations (cents)
Gold sold - managed kg 28,861 27,692 33,224
Gold price received R/kg 223,568 220,612 152,510
Total cash costs R/kg 125,359 122,920 91,473
Year ended
June June
2008 2007
Revenue 23,009.5 19,433.8
Operating costs, net 13,968.7 11,694.3
- Operating costs 13,883.2 11,904.6
- Gold inventory change 85.5 (210.3)
Operating profit 9,040.8 7,739.5
Amortisation and depreciation 3,025.6 2,962.7
Net operating profit 6,015.2 4,776.8
Net interest paid (322.1) (181.0)
(Loss)/gain on foreign exchange 13.6 (151.1)
Gain/(loss) on financial instruments 85.5 (42.7)
Other (129.6) (128.3)
Exploration (327.8) (295.2)
Profit before tax and exceptional items 5,334.8 3,978.5
Exceptional (loss)/gain 1,309.5 245.0
Profit before taxation 6,644.3 4,223.5
Mining and income taxation 1,937.7 1,552.7
- Normal taxation 1,413.1 871.9
- Deferred taxation 524.6 680.8
Net profit from continued operations 4,706.6 2,670.8
Income from discontinued operations 37.0 (36.8)
Profit on sale of Venezuelan assets 74.2 -
Net profit 4,817.8 2,634.0
Attributable to:
- Ordinary shareholders 4,457.5 2,362.5
- Minority shareholders 360.3 271.5
Exceptional items:
Profit on sale of investments 1,416.2 193.0
Profit on sale of assets 33.6 53.5
South Deep restructuring (65.2)
Driefontein 9 shaft closure costs (24.0) -
Impairment of assets (51.2) (1.5)
Other 0.1 -
Total exceptional items 1,309.5 245.0
Taxation 30.2 (68.6)
Net exceptional items after tax and minorities 1,339.7 176.4
Net earnings 4,457.5 2,362.5
Net earnings per share (cents) 683 414
Diluted earnings per share (cents) 637 398
Headline earnings 2,992.3 2,187.8
Headline earnings per share (cents) 459 392
Net earnings excluding gains and losses
on foreign exchange, 2,930.3 2,298.4
financial instruments, exceptional
items and discontinued operations
Net earnings per share excluding
gains and losses on foreign 449 412
exchange, financial instruments,
exceptional items and discontinued
operations (cents)
Gold sold - managed kg 120,707 131,670
Gold price received R/kg 190,623 147,595
Total cash costs R/kg 111,315 86,823
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
United States Dollars Quarter
June March June
2008 2008 2007
Revenue 836.3 821.1 714.7
Operating costs, net 481.6 473.9 437.0
- Operating costs 484.1 468.4 453.3
- Gold inventory change (2.5) 5.5 (16.3)
Operating profit 354.7 347.2 277.7
Amortisation and depreciation 100.1 94.8 122.2
Net operating profit 254.6 252.4 155.5
Net interest paid (5.5) (11.8) (8.3)
Gain/(loss) on foreign exchange (1.1) 5.5 (6.0)
Gain/(loss) on financial instruments - 37.6 5.5
Other (10.2) (4.5) (1.5)
Exploration (14.0) (7.5) (12.6)
Profit before tax and exceptional items 223.8 271.7 132.6
Exceptional (loss)/gain (17.4) (11.1) 5.0
Profit before taxation 206.4 260.6 137.6
Mining and income taxation 87.4 77.2 52.4
- Normal taxation 73.8 47.3 22.0
- Deferred taxation 13.6 29.9 30.4
Net profit from continued operations 119.0 183.4 85.2
Income from discontinued operations (0.1) (0.1) (1.5)
Profit on sale of Venezuelan assets (0.2) (0.3) -
Net profit 118.7 183.0 83.7
Attributable to:
- Ordinary shareholders 104.7 166.8 74.1
- Minority shareholders 14.0 16.2 9.6
Exceptional items:
Profit on sale of investments (4.2) (5.1) 0.9
Profit on sale of assets (0.2) 0.3 4.5
South Deep restructuring (9.0)
Driefontein 9 shaft closure costs 3.0 (6.3) -
Impairment of assets (7.0) (0.4)
Other - - -
Total exceptional items (17.4) (11.1) 5.0
Taxation 4.3 2.7 (2.0)
Net exceptional items after tax
and minorities (13.1) (8.4) 3.0
Net earnings 104.7 166.8 74.1
Net earnings per share (cents) 16 26 11
Diluted earnings per share (cents) 16 24 11
Headline earnings 111.1 175.5 71.1
Headline earnings per share (cents) 17 27 11
Net earnings excluding gains and losses on
foreign exchange,
financial instruments, exceptional
items and discontinued operations 119.1 138.2 68.9
Net earnings per share excluding
gains and losses on foreign
exchange, financial instruments,
exceptional items and discontinued 18 21 11
operations (cents)
South African rand/United States dollar
conversion rate 7.77 7.45 7.09
South African rand/Australian dollar
conversion rate 7.33 6.73 5.89
Gold sold - managed ozs (000) 928 890 1,068
Gold price received $/oz 895 921 669
Total cash costs $/oz 502 513 401
Year ended
June June
2008 2007
Revenue 3,165.0 2,699.1
Operating costs, net 1,921.5 1,624.1
- Operating costs 1,909.7 1,653.4
- Gold inventory change 11.8 (29.2)
Operating profit 1,243.5 1,074.9
Amortisation and depreciation 416.2 411.5
Net operating profit 827.3 663.4
Net interest paid (44.3) (25.1)
Gain/(loss) on foreign exchange 1.9 (21.0)
Gain/(loss) on financial instruments 11.8 (5.9)
Other (17.8) (17.7)
Exploration (45.1) (41.0)
Profit before tax and exceptional items 733.8 552.7
Exceptional (loss)/gain 180.1 33.8
Profit before taxation 913.9 586.5
Mining and income taxation 266.6 215.7
- Normal taxation 194.4 121.1
- Deferred taxation 72.2 94.6
Net profit from continued operations 647.3 370.8
Income from discontinued operations 5.1 (5.1)
Profit on sale of Venezuelan assets 10.2 -
Net profit 662.6 365.7
Attributable to:
- Ordinary shareholders 613.0 328.0
- Minority shareholders 49.6 37.7
Exceptional items:
Profit on sale of investments 194.8 26.8
Profit on sale of assets 4.6 7.4
South Deep restructuring (9.0)
Driefontein 9 shaft closure costs (3.3) -
Impairment of assets (7.0) (0.4)
Other - -
Total exceptional items 180.1 33.8
Taxation 4.2 (9.6)
Net exceptional items after tax and minorities 184.3 24.2
Net earnings 613.0 328.0
Net earnings per share (cents) 94 59
Diluted earnings per share (cents) 82 55
Headline earnings 411.6 303.8
Headline earnings per share (cents) 63 54
Net earnings excluding gains and losses on
foreign exchange,
financial instruments, exceptional
items and discontinued operations 403.1 319.2
Net earnings per share excluding
gains and losses on foreign
exchange, financial instruments,
exceptional items and discontinued 62 57
operations (cents)
South African rand/United States dollar
conversion rate 7.27 7.20
South African rand/Australian dollar
conversion rate 6.52 5.65
Gold sold - managed ozs (000) 3,881 4,233
Gold price received $/oz 816 638
Total cash costs $/oz 476 374
Balance sheet
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand
June June
2008 2007
Property, plant and equipment 45,533.3 37,312.8
Goodwill 4,458.9 4,458.9
Non-current assets 746.7 627.7
Investments 5,704.2 2,272.4
Discontinued operations - 3,352.3
Current assets 6,450.5 5,877.0
- Other current assets 4,443.2 3,566.9
- Cash and deposits 2,007.3 2,310.1
Total assets 62,893.6 53,901.1
Shareholders` equity 42,561.2 37,106.3
Deferred taxation 5,421.9 4,651.4
Long-term loans 6,513.9 6,170.5
Environmental rehabilitation provisions 2,015.5 1,380.5
Post-retirement health care provisions 21.0 21.0
Current liabilities 6,360.1 4,571.4
- Other current liabilities 5,875.9 3,852.8
- Current portion of long-term loans 484.2 718.6
Total equity and liabilities 62,893.6 53,901.1
South African rand/US dollar conversion rate
South African rand/Australian dollar conversion rate
United States Dollars
June June
2008 2007
Property, plant and equipment 5,691.7 5,218.6
Goodwill 557.4 623.6
Non-current assets 93.3 87.8
Investments 713.0 317.8
Discontinued operations - 468.9
Current assets 806.3 822.0
- Other current assets 555.4 498.9
- Cash and deposits 250.9 323.1
Total assets 7,861.7 7,538.7
Shareholders` equity 5,320.1 5,189.7
Deferred taxation 677.7 650.5
Long-term loans 814.2 863.0
Environmental rehabilitation provisions 251.9 193.1
Post-retirement health care provisions 2.6 2.9
Current liabilities 795.2 639.5
- Other current liabilities 734.7 539.0
- Current portion of long-term loans 60.5 100.5
Total equity and liabilities 7,861.7 7,538.7
South African rand/US dollar conversion rate 8.00 7.15
South African rand/Australian dollar conversion rate 7.66 6.06
Condensed changes in equity
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand
June June
2008 2007
Balance at the beginning of the financial year 37,106.3 20,001.5
Issue of share capital 0.5 78.7
Increase in share premium 72.2 18,398.2
Marked to market valuation of listed investments 320.0 205.7
Dividends paid (1,044.8) (1,141.4)
Increase in share-based payment reserve 153.3 90.0
Profit attributable to ordinary shareholders 4,457.5 2,362.5
Profit attributable to minority shareholders 360.3 271.5
Decrease in minority interests (439.8) 253.7
Loss on transacting subsidiaries (74.7) (3,559.9)
Currency translation adjustment and other 2,104.5 145.8
Reserves released on sale of Venezuelan assets (454.1) -
Balance as at the end of June 42,561.2 37,106.3
United States Dollars
June June
2008 2007
Balance at the beginning of the financial year 5,189.7 2,692.0
Issue of share capital 0.1 10.9
Increase in share premium 9.9 2,561.5
Marked to market valuation of listed investments 44.0 28.6
Dividends paid (143.7) (159.7)
Increase in share-based payment reserve 21.1 12.5
Profit attributable to ordinary shareholders 613.1 328.0
Profit attributable to minority shareholders 49.6 37.7
Decrease in minority interests (60.5) (13.0)
Loss on transacting subsidiaries (10.3) (495.9)
Currency translation adjustment and other (330.4) 187.1
Reserves released on sale of Venezuelan assets (62.5) -
Balance as at the end of June 5,320.1 5,189.7
Reconciliation of headline earnings with net earnings
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand
June June
2008 2007
Net earnings 4,457.5 2,362.5
Profit on sale of investments (1,416.2) (193.0)
Taxation effect of profit on sale of investments 2.2 48.6
Profit on sale of assets (33.6) (53.5)
Taxation effect of profit on sale of assets 20.8 20.4
Profit on sale of Venezuelan assets (74.2) 2.8
Impairment of assets 51.2 -
Taxation effect on impairment of assets (15.4) -
Headline earnings 2,992.3 2,187.8
Headline earnings per share - cents 459 392
Based on headline earnings as given above divided by
653,156,884 for June 2008 (March 2008- 652,691,549
and June
2007 - 558,259,686) being the weighted average number
of ordinary shares in issue.
United States Dollars
June June
2008 2007
Net earnings 613.0 328.0
Profit on sale of investments (199.9) (26.8)
Taxation effect of profit on sale of investments 0.3 6.8
Profit on sale of assets (4.6) (7.4)
Taxation effect of profit on sale of assets 2.3 2.8
Profit on sale of Venezuelan assets (4.4) 0.4
Impairment of assets 7.0 -
Taxation effect on impairment of assets (2.1) -
Headline earnings 411.6 303.8
Headline earnings per share - cents 63 54
Based on headline earnings as given above divided by
653,156,884 for June 2008 (March 2008- 652,691,549 and
June
2007 - 558,259,686) 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
June March June
2008 2008 2007
Cash flows from operating activities 2,567.9 3,038.5 1,969.3
Profit before tax and exceptional
items 1,708.7 1,974.5 941.3
Exceptional items (94.8) (41.6) 36.5
Amortisation and depreciation 777.9 713.9 866.1
Change in working capital 262.5 794.2 274.0
Taxation paid (194.6) (238.0) (136.7)
Settlement of Western Areas hedge - - -
Other non-cash items 108.2 (164.5) (1.3)
Discontinued operations - - (10.6)
Dividends paid (424.9) - -
Ordinary shareholders (424.9) - -
Minority shareholders in subsidiaries - - -
Cash flows from investing activities (3,219.5) (2,355.3) (2,331.8)
Capital expenditure - additions (2,524.8) (2,085.7) (2,157.3)
Capital expenditure - proceeds on
disposal 6.5 3.1 41.1
Sale/(purchase) of subsidiaries - - (25.0)
Purchase of investments (707.5) (258.1) (99.9)
Proceeds on the disposal of
investments 65.4 1.9 11.3
Environmental and post-retirement
health care payments (59.1) (16.5) (68.9)
Discontinued operations - - (33.1)
Cash flows from financing activities 1,095.1 (213.7) 336.8
Loans received 1,164.6 1,535.3 5,324.1
Loans repaid (850.0) (1,788.3) (5,003.0)
Rights offer - Cerro Corona 768.0 - -
Minority shareholders loans repaid - - -
Shares issued 12.5 39.3 15.7
Net cash inflow/(outflow) 18.6 469.5 (25.7)
Translation adjustment 44.6 154.0 8.0
Cash at beginning of period 1,944.1 1,320.6 2,327.8
Cash at end of period 2,007.3 1,944.1 2,310.1
Year ended
June June
2008 2007
Cash flows from operating activities 7,739.5 2,344.7
Profit before tax and exceptional items 5,334.8 3,978.5
Exceptional items 1,309.5 245.0
Amortisation and depreciation 3,025.6 3,962.7
Change in working capital 262.3 (168.8)
Taxation paid (923.4) (714.7)
Settlement of Western Areas hedge - (3,893.8)
Other non-cash items (1,395.7) (85.8)
Discontinued operations 126.4 21.6
Dividends paid (1,044.8) (1,141.4)
Ordinary shareholders (1,044.8) (1,130.9)
Minority shareholders in subsidiaries - (10.5)
Cash flows from investing activities (7,729.8) (15,194.6)
Capital expenditure - additions (9,013.9) (5,930.8)
Capital expenditure - proceeds on disposal 42.2 63.4
Sale/(purchase) of subsidiaries 1,042.1 (8,732.7)
Purchase of investments (977.6) (648.4)
Proceeds on the disposal of investments 99.8 326.1
Environmental and post-retirement health care
payments (87.0) (107.2)
Discontinued operations 1,164.6 (165.0)
Cash flows from financing activities 557.1 14,684.7
Loans received 4,335.9 18,821.9
Loans repaid (4,619.5) (14,194.2)
Rights offer - Cerro Corona 768.0 -
Minority shareholders loans repaid - (90.1)
Shares issued 72.7 10,147.1
Net cash inflow/(outflow) (478.0) 693.4
Translation adjustment 175.2 (0.8)
Cash at beginning of period 2,310.1 1,617.5
Cash at end of period 2,007.3 2,310.1
United States Dollars
Quarter
June March June
2008 2008 2007
Cash flows from operating activities 334.0 407.9 276.1
Profit before tax and exceptional items 223.8 271.7 132.6
Exceptional items (17.4) (11.1) 5.0
Amortisation and depreciation 100.1 94.8 122.2
Change in working capital 36.1 114.6 37.8
Taxation paid (27.7) (43.5) (19.1)
Settlement of Western Areas hedge - - -
Other non-cash items 19.5 (18.2) (0.2)
Discontinued operations (0.4) (0.4) (2.2)
Dividends paid (53.9) - -
Ordinary shareholders (53.9) - -
Minority shareholders in subsidiaries - - -
Cash flows from investing activities (429.0) (323.6) (331.2)
Capital expenditure - additions (327.2) (277.3) (301.7)
Capital expenditure - proceeds on disposal 0.8 0.3 5.7
Sale/(purchase) of subsidiaries (3.3) (3.8) (8.5)
Purchase of investments (96.5) (36.3) (14.2)
Proceeds on the disposal of investments 8.9 0.1 1.8
Environmental and post-retirement health
care payments (8.1) (2.3) (9.6)
Discontinued operations (3.6) (4.3) (4.7)
Cash flows from financing activities 142.7 (28.9) 17.9
Loans received 150.4 209.9 718.0
Loans repaid (105.2) (244.3) (708.1)
Rights issue - Cerro Corona 96.0 - -
Minority shareholders loans repaid - - -
Shares issued 1.5 5.5 8.0
Net cash (outflow)/inflow (6.2) 55.4 (37.2)
Translation adjustment 14.4 (1.4) 37.0
Cash at beginning of period 242.7 188.7 323.3
Cash at end of period 250.9 242.7 323.1
Year ended
June June
2008 2007
Cash flows from operating activities 1,048.1 333.7
Profit before tax and exceptional items 733.8 552.7
Exceptional items 180.1 33.8
Amortisation and depreciation 416.2 411.5
Change in working capital 36.1 (23.4)
Taxation paid (143.5) (97.4)
Settlement of Western Areas hedge - (534.6)
Other non-cash items (192.0) (11.9)
Discontinued operations 17.4 3.0
Dividends paid (142.5) (159.7)
Ordinary shareholders (142.5) (158.2)
Minority shareholders in subsidiaries - (1.5)
Cash flows from investing activities (1,063.4) (2,110.4)
Capital expenditure - additions (1,239.9) (824.2)
Capital expenditure - proceeds on disposal 5.8 8.8
Sale/(purchase) of subsidiaries 143.3 (1,212.9)
Purchase of investments (134.5) (90.1)
Proceeds on the disposal of investments 13.7 45.3
Environmental and post-retirement health care
payments (12.0) (14.9)
Discontinued operations 160.2 (22.4)
Cash flows from financing activities 67.0 2,011.5
Loans received 596.4 2,593.1
Loans repaid (635.4) (1,979.4)
Rights issue - Cerro Corona 96.0 -
Minority shareholders loans repaid - (11.5)
Shares issued 10.0 1,409.3
Net cash (outflow)/inflow (90.8) 75.1
Translation adjustment 18.6 30.3
Cash at beginning of period 323.1 217.7
Cash at end of period 250.9 323.1
Hedging / Derivatives
The Group`s policy is to remain unhedged to the gold price. However, hedges are
sometimes undertaken on a project specific basis as follows:
to protect cash flows at times of significant expenditure,
for specific debt servicing requirements, and
to safeguard the viability of higher cost operations.
Gold Fields may from time to time establish currency financial instruments to
protect underlying cash flows.
Gold Fields has various currency financial instruments - those remaining are
described in the schedule.
Position at end of June 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. On 6 June 2008 this
forward cover was extended to 7 July 2008 at a rate of R7.8479, based on a spot
of R7.7799. 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 June 2008 the mark to market value of the US$318.0 million
forward cover was positive by R55.5 million (US$6.9 million). The quarter on
quarter marked to market movement was negative R61.2 million of which R3.2
million was offset against the R3.2 million foreign exchange gain on the
revaluation of the underlying loan being hedged. The balance of R58.1 million
represents the forward cover cost which has been included in interest paid in
the income statement.
Diesel Hedge
Subsequent to year end Gold Fields Ghana Holdings (BVI) Ltd purchased Asian
style ICE Gasoil call options in respect of a total of 30 million litres of
diesel exposure (2,5 million litres per month), for the period 1 July 2008 - 30
June 2009 at a strike price of US$1.09 per litre. A premium of US$2.5 million
was paid.
A further Asian style ICE Gasoil call options was purchased in respect of a 30
million litres of diesel exposure (2,5m litres per month) for the period 1 July
2008 - 30 June 2009 at a strike price of US$1.11 per litre. A premium of US$3.3
million was paid.
On 21 July 2008 Gold Fields Australia purchased Asian style Singapore 0.5
Gasoil call options in respect of a total of 30 million litres of diesel
exposure (2.5 million litres per month) for the period 1 August 2008 - 31 July
2009 at a strike price of US$1.0950 per litre. A premium of US$2,85 million was
paid.
Total cash costs
Gold Industry Standards Basis
Figures are in millions unless otherwise stated
South African Operations
Total Mine
Operations Total Driefontein Kloof
Operating costs (1)
June 2008 3,747.5 2,197.1 741.5 694.2
March 2008 3,502.6 2,126.3 723.3 646.5
Financial year ended 13,883.2 8,610.9 2,932.5 2,690.0
Gold-in-process and
inventory change*
June 2008 (25.5) - - -
March 2008 16.5 - - -
Financial year ended (6.6) - - -
Less:
June 2008 15.2 10.6 4.4 3.2
Rehabilitation costs
March 2008 14.6 10.6 4.4 3.3
Financial year ended 59.1 42.4 17.6 13.1
Production taxes
June 2008 (29.1) (29.1) (16.2) (11.3)
March 2008 10.3 10.3 4.1 2.8
Financial year ended 0.6 0.6 (5.0) (3.1)
General and admin
June 2008 158.2 87.4 34.5 26.0
March 2008 153.6 91.9 34.1 29.1
Financial year ended 586.3 358.2 135.4 112.9
Exploration costs
June 2008 1.6 - - -
March 2008 17.8 - - -
Financial year ended 37.9 - - -
Cash operating costs
June 2008 3,576.1 2,128.2 718.8 676.3
March 2008 3,322.8 2,013.5 680.7 611.3
Financial year ended 13,192.7 8,209.7 2,784.5 2,567.1
Plus:
June 2008 (29.1) (29.1) (16.2) (11.3)
Production taxes
March 2008 10.3 10.3 4.1 2.8
Financial year ended 0.6 0.6 (5.0) (3.1)
Royalties
June 2008 71.0 - - -
March 2008 70.8 - - -
Financial year ended 243.2 - - -
TOTAL CASH COSTS(2)
June 2008 3,618.0 2,099.1 702.6 665.0
March 2008 3,403.9 2,023.8 684.8 614.1
Financial year ended 13,436.5 8,210.3 2,779.5 2,564.0
Plus:
June 2008 750.9 389.5 144.4 144.5
Amortisation*
March 2008 689.2 375.5 118.0 127.4
Financial year ended 2,964.6 1,664.1 548.3 591.4
Rehabilitation
June 2008 15.2 10.6 4.4 3.2
March 2008 14.6 10.6 4.4 3.3
Financial year ended 59.1 42.4 17.6 13.1
TOTAL PRODUCTION
COSTS(3)
June 2008 4,384.1 2,499.2 851.4 812.7
March 2008 4,107.7 2,409.9 807.2 744.8
Financial year ended 16,460.2 9,916.8 3,345.4 3,168.5
Gold sold -
thousand ounces
June 2008 927.9 553.2 218.2 179.3
March 2008 890.3 519.8 209.9 175.5
Financial year ended 3,880.8 2,419.1 928.0 820.9
TOTAL CASH COSTS -
US$/oz
June 2008 502 488 414 477
March 2008 513 523 438 470
Financial year ended 476 467 412 430
TOTAL CASH COSTS -
R/kg
June 2008 125,359 121,984 103,537 119,240
March 2008 122,920 125,181 104,870 112,514
Financial year ended 111,315 109,117 96,293 100,419
TOTAL PRODUCTION COSTS
June 2008 608 581 502 583
March 2008 619 622 516 570
- US$/oz
Financial year ended 583 564 496 531
South African Operations
South
Beatrix Deep Total
Operating costs (1)
June 2008 459.6 301.8 1,550.4
March 2008 429.4 327.1 1,376.3
Financial year ended 1,724.7 1,263.7 5,272.3
Gold-in-process and
inventory change*
June 2008 - - (25.5)
March 2008 - - 16.5
Financial year ended - - (6.6)
Less:
June 2008 2.3 0.7 4.6
Rehabilitation costs
March 2008 2.2 0 .7 4.0
Financial year ended 8.9 2.8 16.7
Production taxes
June 2008 (2.8) 1.2 -
March 2008 1.9 1.5 -
Financial year ended 3.1 5.6 -
General and admin
June 2008 17.9 9.0 70.8
March 2008 20.3 8.4 61.7
Financial year ended 75.6 34.3 228.1
Exploration costs
June 2008 - - 1.6
March 2008 - - 17.8
Financial year ended - - 37.9
Cash operating costs
June 2008 442.2 290.9 1,447.9
March 2008 405.0 316.5 1,309.3
Financial year ended 1,637.1 1,221.0 4,983.0
Plus:
June 2008 (2.8) 1.2 -
Production taxes
March 2008 1.9 1.5 -
Financial year ended 3.1 5.6 -
Royalties
June 2008 - - 71.0
March 2008 - - 70.8
Financial year ended - - 243.2
TOTAL CASH COSTS(2)
June 2008 439.4 292.1 1,518.9
March 2008 406.9 318.0 1,380.1
Financial year ended 1,640.2 1,226.6 5,226.2
Plus:
June 2008 89.7 10.9 361.4
Amortisation*
March 2008 63.0 67.1 313.7
Financial year ended 292.6 231.8 1,300.5
Rehabilitation
June 2008 2.3 0.7 4.6
March 2008 2.2 0.7 4.0
Financial year ended 8.9 2.8 16.7
TOTAL PRODUCTION
COSTS(3)
June 2008 531.4 303.7 1,884.9
March 2008 472.1 385.8 1,697.8
Financial year ended 1,941.7 1,461.2 6,543.4
Gold sold -
thousand ounces
June 2008 118.3 37.5 374.7
March 2008 81.7 52.6 370.5
Financial year ended 438.1 232.1 1,461.7
TOTAL CASH COSTS -
US$/oz
June 2008 478 1,002 522
March 2008 668 811 500
Financial year ended 515 727 492
TOTAL CASH COSTS -
R/kg
June 2008 119,467 250,300 130,344
March 2008 160,071 194,258 119,748
Financial year ended 120,382 169,889 114,952
TOTAL PRODUCTION COSTS
June 2008 578 1,042 647
March 2008 775 984 615
- US$/oz
Financial year ended 610 866 616
International Operations
Ghana Australia #
Tarkwa Damang St Ives Agnew
Operating costs (1)
June 2008 598.4 255.4 506.5 190.1
March 2008 540.3 230.5 451.4 154.1
Financial year ended 2,058.7 858.6 1,755.0 600.0
Gold-in-process and
inventory change*
June 2008 (12.7) (30.0) 14.3 2.9
March 2008 (0.8) (12.8) 15.2 14.9
Financial year ended (25.0) (77.0) 37.9 57.5
Less:
June 2008 1.2 - 2.7 0.7
Rehabilitation costs
March 2008 1 .2 - 2 .3 0 .5
Financial year ended 4.7 - 9.6 2.4
Production taxes
June 2008 - - - -
March 2008 - - - -
Financial year ended - - - -
General and admin
June 2008 39.0 4.7 20.1 7.0
March 2008 36.0 5.4 16.1 4.2
Financial year ended 124.3 18.2 64.1 21.5
Exploration costs
June 2008 - 6.2 (7.0) 2.4
March 2008 - 9.4 7.5 0.9
Financial year ended - 20.4 12.9 4.6
Cash operating costs
June 2008 545.5 214.5 505.0 182.9
March 2008 502.3 202.9 440.7 163.4
Financial year ended 1,904.7 743.0 1,706.3 629.0
Plus:
June 2008 - - - -
Production taxes
March 2008 - - - -
Financial year ended - - - -
Royalties
June 2008 34.8 10.0 17.5 8.7
March 2008 33.4 11.1 17.2 9.1
Financial year ended 115.9 34.9 62.2 30.2
TOTAL CASH COSTS(2)
June 2008 580.3 224.5 522.5 191.6
March 2008 535.7 214.0 457.9 172.5
Financial year ended 2,020.6 777.9 1,768.5 659.2
Plus:
June 2008 92.4 40.8 228.2
Amortisation*
March 2008 81.2 25.9 206.6
Financial year ended 321.0 101.1 878.4
Rehabilitation
June 2008 1.2 - 3.4
March 2008 1.2 - 2.8
Financial year ended 4.7 - 12.0
TOTAL PRODUCTION
COSTS(3)
June 2008 673.9 265.3 945.7
March 2008 618.1 239.9 839.8
Financial year ended 2,346.3 879.0 3,318.1
Gold sold -
thousand ounces
June 2008 168.6 50.0 101.5 54.6
March 2008 165.1 52.6 103.9 49.0
Financial year ended 646.1 194.2 417.7 203.7
TOTAL CASH COSTS -
US$/oz
June 2008 443 578 663 452
March 2008 436 546 592 473
Financial year ended 430 551 582 445
TOTAL CASH COSTS -
R/kg
June 2008 110,639 144,373 165,558 112,905
March 2008 104,323 130,887 141,721 113,189
Financial year ended 100,552 128,770 136,122 104,040
TOTAL PRODUCTION COSTS
June 2008 514 683 780
March 2008 503 613 737
- US$/oz
Financial year ended 500 623 734
Discontinued
Operations##
Venezuela
Choco 10
Operating costs (1)
June 2008 -
March 2008 -
Financial year ended 191.3
Gold-in-process and
inventory change*
June 2008 -
March 2008 -
Financial year ended 8.6
Less:
June 2008 -
Rehabilitation costs
March 2008 -
Financial year ended -
Production taxes
June 2008 -
March 2008 -
Financial year ended -
General and admin
June 2008 -
March 2008 -
Financial year ended 30.0
Exploration costs
June 2008 -
March 2008 -
Financial year ended -
Cash operating costs
June 2008 -
March 2008 -
Financial year ended 169.9
Plus:
June 2008 -
Production taxes
March 2008 -
Financial year ended -
Royalties
June 2008 -
March 2008 -
Financial year ended 6.0
TOTAL CASH COSTS(2)
June 2008
March 2008 -
Financial year ended 175.9
Plus:
June 2008 -
Amortisation*
March 2008 -
Financial year ended 14.8
Rehabilitation
June 2008 -
March 2008 -
Financial year ended -
TOTAL PRODUCTION
COSTS(3)
June 2008 -
March 2008 -
Financial year ended 190.7
Gold sold -
thousand ounces
June 2008 -
March 2008 -
Financial year ended 33.2
TOTAL CASH COSTS -
US$/oz
June 2008 -
March 2008 -
Financial year ended 729
TOTAL CASH COSTS -
R/kg
June 2008 -
March 2008 -
Financial year ended 170,281
TOTAL PRODUCTION COSTS
June 2008 -
March 2008 -
- US$/oz
Financial year ended 789
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 = R7.77 and US$1 = R7.45 for the June 2008 and
March 2008 quarters respectively and US$1 = R7.27 for F2008.
Notional cash expenditure ##
South African Operations
Total Mines Total Driefontein
Operating costs - R`m
June 2008 3,747.5 2,197.1 741.5
March 2008 3,502.6 2,126.3 723.3
Financial year ended 13,883.2 8,610.9 2,932.5
Capital expenditure
June 2008 2,517.2 912.6 302.9
March 2008 2,068.5 784.5 226.9
Financial year ended 8,579.0 3,275.4 1,016.4
Notional cash
expenditure - R/kg
June 2008 217,065 180,712 153,905
March 2008 201,181 180,046 145,513
Financial year ended 186,088 157,972 136,806
Notional cash
expenditure - $/oz
June 2008 869 723 616
March 2008 840 752 608
Financial year ended 796 676 585
South African Operations
South
Kloof Beatrix Deep Total
Operating costs - R`m
June 2008 694.2 459.6 301.8 1,550.4
March 2008 646.5 429.4 327.1 1,376.3
Financial year ended 2,690.0 1,724.7 1,263.7 5,272.3
Capital expenditure
June 2008 242.4 151.3 216.0 917.7
March 2008 212.0 149.8 195.8 708.0
Financial year ended 897.7 576.6 784.7 2,770.7
Notional cash
expenditure - R/kg
June 2008 167,940 166,096 443,702 211,800
March 2008 157,292 227,852 319,426 180,850
Financial year ended 140,512 168,903 283,712 176,909
Notional cash
expenditure - $/oz
June 2008 672 665 1,776 848
March 2008 657 951 1,334 755
Financial year ended 601 723 1,214 757
International Operations
Ghana
Tarkwa Damang
Operating costs - R`m
June 2008 598.4 255.4
March 2008 540.3 230.5
Financial year ended 2,058.7 858.6
Capital expenditure
June 2008 522.9 44.7
March 2008 397.1 56.0
Financial year ended 1,541.0 204.2
Notional cash
expenditure - R/kg
June 2008 213,785 192,990
March 2008 182,551 175,229
Financial year ended 179,134 175,927
Notional cash
expenditure - $/oz
June 2008 856 773
March 2008 762 732
Financial year ended 766 753
International Operations
Peru
Australia Total
Cerro
St Ives Agnew Corona
Operating costs - R`m
June 2008 506.5 190.1 -
March 2008 451.4 154.1 -
Financial year ended 1,755.0 600.0 -
Capital expenditure
June 2008 259.4 90.7 686.9
March 2008 198.5 56.4 576.0
Financial year ended 784.5 241.0 2,532.9
Notional cash
expenditure - R/kg
June 2008 242,681 165,468 -
March 2008 201,145 138,123 -
Financial year ended 195,466 132,734 -
Notional cash
expenditure - $/oz
June 2008 971 662 -
March 2008 840 577 -
Financial year ended 836 568 -
## Notional cash expenditure (NCE) per kilogram (ounce) = Operating costs plus
capital expenditure divided by gold produced.
Operating and financial results
South African Rand
South African Operations
Total Mine
Operations Total Driefontein
Operating Results
June 2008 12,259 3,661 1,545
Ore milled/treated (000 tons)
March 2008 12,376 3,166 1,426
Financial year ended 49,615 14,516 5,981
Yield (grams per ton)
June 2008 2.4 4.7 4.4
March 2008 2.2 5.1 4.6
Financial year ended 2.4 5.2 4.8
Gold produced (kilograms)
June 2008 28,861 17,208 6,786
March 2008 27,692 16,167 6,530
Financial year ended 120,707 75,243 28,865
Gold sold (kilograms)
June 2008 28,861 17,208 6,786
March 2008 27,692 16,167 6,530
Financial year ended 120,707 75,243 28,865
Gold price received
(Rand per kilogram)
June 2008 223,568 225,070 224,934
March 2008 220,612 222,657 223,400
Financial year ended 190,623 189,572 190,608
Total cash costs
(Rand per kilogram)
June 2008 125,359 121,984 103,537
March 2008 122,920 125,181 104,870
Financial year ended 111,315 109,117 96,293
Total production costs
(Rand per kilogram)
June 2008 151,904 145,235 125,464
March 2008 148,339 149,063 123,614
Financial year ended 136,365 131,797 115,898
Operating costs
(Rand per ton)
June 2008 306 600 480
March 2008 283 672 507
Financial year ended 280 593 490
Financial Results
(Rand million)
Revenue
June 2008 6,452.4 3,873.0 1,526.4
March 2008 6,109.2 3,599.7 1,458.8
Financial year ended 23,009.5 14,264.0 5,501.9
Operating costs, net
June 2008 3,731.1 2,197.1 741.5
March 2008 3,543.3 2,126.3 723.3
Financial year ended 13,968.7 8,610.9 2,932.5
- Operating costs
June 2008 3,747.5 2,197.1 741.5
March 2008 3,502.6 2,126.3 723.3
Financial year ended 13,883.2 8,610.9 2,932.5
- Gold inventory change
June 2008 (16.4) - -
March 2008 40.7 - -
Financial year ended 85.5 - -
Operating profit
June 2008 2,721.3 1,675.9 784.9
March 2008 2,565.9 1,473.4 735.5
Financial year ended 9,040.8 5,563.1 2,569.4
Amortisation of mining assets
June 2008 741.8 389.5 144.4
March 2008 665.0 375.5 118.0
Financial year ended 2,872.5 1,664.1 548.3
Net operating profit
June 2008 1,979.5 1,286.4 640.5
March 2008 1,900.9 1,097.9 617.5
Financial year ended 6,168.3 3,989.0 2,021.1
Other income/(expense)
June 2008 (11.6) (45.6) (18.9)
March 2008 (107.6) (132.2) (44.1)
Financial year ended (146.3) (267.0) (100.1)
Profit before taxation
June 2008 1,967.9 1,240.8 621.6
March 2008 1,793.3 965.7 573.4
Financial year ended 6,022.0 3,722.0 1,921.0
Mining and income taxation
June 2008 659.8 437.6 237.1
March 2008 580.0 312.9 182.3
Financial year ended 2,014.5 1,296.8 685.9
- Normal taxation
June 2008 505.2 276.1 180.7
March 2008 320.0 217.5 135.4
Financial year ended 1,303.8 825.8 500.8
- Deferred taxation
June 2008 154.6 161.5 56.4
March 2008 260.0 95.4 46.9
Financial year ended 710.7 471.0 185.1
Profit before
exceptional items
June 2008 1,308.1 803.2 384.5
March 2008 1,213.3 652.8 391.1
Financial year ended 4,007.5 2,425.2 1,235.1
Exceptional items
June 2008 (96.4) (43.8) 21.2
March 2008 (41.5) (41.9) (44.7)
Financial year ended (106.7) (54.7) (1.8)
Net profit
June 2008 1,211.7 759.4 405.7
March 2008 1,171.8 610.9 346.4
Financial year ended 3,900.8 2,370.5 1,233.3
Net profit excluding gains
and losses on foreign exchange,
financial instruments and
exceptional items
June 2008 1,275.9 785.3 392.5
March 2008 1,202.6 636.3 374.2
Financial year ended 3,974.4 2,409.9 1,234.4
Capital expenditure
June 2008 1,830.3 912.6 302.9
March 2008 1,492.5 784.5 226.9
Financial year ended 6,046.1 3,275.4 1,016.4
Planned for next six
months to December 2008 3,797.1 1,887.5 481.5
South African Operations
Kloof Beatrix South Deep
Operating Results
June 2008 1,143 778 195
Ore milled/treated (000 tons)
March 2008 808 656 276
Financial year ended 3,953 3,215 1,367
Yield (grams per ton)
June 2008 4.9 4.7 6.0
March 2008 6.8 3.9 5.9
Financial year ended 6.5 4.2 5.3
Gold produced (kilograms)
June 2008 5,577 3,678 1,167
March 2008 5,458 2,542 1,637
Financial year ended 25,533 13,625 7,220
Gold sold (kilograms)
June 2008 5,577 3,678 1,167
March 2008 5,458 2,542 1,637
Financial year ended 25,533 13,625 7,220
Gold price received
(Rand per kilogram)
June 2008 224,583 226,101 224,936
March 2008 220,136 226,515 222,114
Financial year ended 188,180 191,941 185,886
Total cash costs
(Rand per kilogram)
June 2008 119,240 119,467 250,300
March 2008 112,514 160,071 194,258
Financial year ended 100,419 120,382 169,889
Total production costs
(Rand per kilogram)
June 2008 145,724 144,481 260,240
March 2008 136,460 185,720 235,675
Financial year ended 124,094 142,510 202,382
Operating costs
(Rand per ton)
June 2008 607 591 1,548
March 2008 800 655 1,185
Financial year ended 680 536 924
Financial Results
(Rand million)
Revenue
June 2008 1,252.5 831.6 262.5
March 2008 1,201.5 575.8 363.6
Financial year ended 4,804.8 2,615.2 1,342.1
Operating costs, net
June 2008 694.2 459.6 301.8
March 2008 646.5 429.4 327.1
Financial year ended 2,690.0 1,724.7 1,263.7
- Operating costs
June 2008 694.2 459.6 301.8
March 2008 646.5 429.4 327.1
Financial year ended 2,690.0 1,724.7 1,263.7
- Gold inventory change
June 2008 - - -
March 2008 - - -
Financial year ended - - -
Operating profit
June 2008 558.3 372.0 (39.3)
March 2008 555.0 146.4 36.5
Financial year ended 2,114.8 890.5 78.4
Amortisation of mining assets
June 2008 144.5 89.7 10.9
March 2008 127.4 63.0 67.1
Financial year ended 591.4 292.6 231.8
Net operating profit
June 2008 413.8 282.3 (50.2)
March 2008 427.6 83.4 (30.6)
Financial year ended 1,523.4 597.9 (153.4)
Other income/(expense)
June 2008 (8.0) (7.2) (11.5)
March 2008 (47.0) (37.2) (3.9)
Financial year ended (76.1) (63.1) (27.7)
Profit before taxation
June 2008 405.8 275.1 (61.7)
March 2008 380.6 46.2 (34.5)
Financial year ended 1,447.3 534.8 (181.1)
Mining and income taxation
June 2008 143.1 108.1 (50.7)
March 2008 126.8 17.5 (13.7)
Financial year ended 500.0 206.3 (95.4)
- Normal taxation
June 2008 94.9 0.5 -
March 2008 81.9 0.2 -
Financial year ended 323.7 1.3 -
- Deferred taxation
June 2008 48.2 107.6 (50.7)
March 2008 44.9 17.3 (13.7)
Financial year ended 176.3 205.0 (95.4)
Profit before
exceptional items
June 2008 262.7 167.0 (11.0)
March 2008 253.8 28.7 (20.8)
Financial year ended 947.3 328.5 (85.7)
Exceptional items
June 2008 (0.3) 0.4 (65.1)
March 2008 - 2.7 0.1
Financial year ended 0.6 3.9 (57.4)
Net profit
June 2008 262.4 167.4 (76.1)
March 2008 253.8 31.4 (20.7)
Financial year ended 947.9 332.4 (143.1)
Net profit excluding gains
and losses on
foreign exchange, financial
instruments and
exceptional items
June 2008 262.7 167.1 (37.0)
March 2008 253.7 29.7 (21.3)
Financial year ended 947.6 329.9 (102.0)
Capital expenditure
June 2008 242.4 151.3 216.0
March 2008 212.0 149.8 195.8
Financial year ended 897.7 576.6 784.7
Planned for next six
months to December 2008 565.0 337.0 504.0
Operating and financial results
International Operations
South African Rand
Ghana
Total Tarkwa Damang
Operating Results
Ore milled/treated
(000 tons)
June 2008 8,598 5,469 1,057
March 2008 9,210 5,765 1,232
Financial year ended 35,099 22,035 4,516
Yield (grams per ton)
June 2008 1.4 1.0 1.5
March 2008 1.3 0.9 1.3
Financial year ended 1.3 0.9 1.3
Gold produced (kilograms)
June 2008 11,653 5,245 1,555
March 2008 11,525 5,135 1,635
Financial year ended 45,464 20,095 6,041
Gold sold (kilograms)
June 2008 11,653 5,245 1,555
March 2008 11,525 5,135 1,635
Financial year ended 45,464 20,095 6,041
Gold price received
(Rand per kilogram)
June 2008 221,351 221,049 221,672
March 2008 217,744 217,235 217,798
Financial year ended 192,361 192,272 193,081
Total cash costs
(Rand per kilogram)
June 2008 130,344 110,639 144,373
March 2008 119,748 104,323 130,887
Financial year ended 114,952 100,552 128,770
Total production
costs (Rand per
kilogram)
June 2008 161,752 128,484 170,611
March 2008 147,323 120,370 146,789
Financial year ended 143,925 116,760 145,506
Operating costs
(Rand per ton)
June 2008 180 109 242
March 2008 149 94 187
Financial year ended 150 93 190
Financial Results
(Rand million)
Revenue
June 2008 2,579.4 1,159.4 344.7
March 2008 2,509.5 1,115.5 356.1
Financial year ended 8,745.5 3,863.7 1,166.4
Operating costs, net
June 2008 1,534.0 584.9 225.2
March 2008 1,417.0 533.4 217.8
Financial year ended 5,357.8 2,022.9 781.6
- Operating costs
June 2008 1,550.4 598.4 255.4
March 2008 1,376.3 540.3 230.5
Financial year ended 5,272.3 2,058.7 858.6
- Gold inventory
change
June 2008 (16.4) (13.5) (30.2)
March 2008 40.7 (6.9) (12.7)
Financial year ended 85.5 (35.8) (77.0)
Operating profit
June 2008 1,045.4 574.5 119.5
March 2008 1,092.5 582.1 138.3
Financial year ended 3,387.7 1,840.8 384.8
Amortisation of
mining assets
June 2008 352.3 93.2 41.0
March 2008 289.5 87.3 25.8
Financial year ended 1,208.4 331.8 101.1
Net operating profit
June 2008 693.1 481.3 78.5
March 2008 803.0 494.8 112.5
Financial year ended 2,179.3 1,509.0 283.7
Other income/(expense)
June 2008 34.0 (2.3) (0.7)
March 2008 24.6 (7.6) (0.7)
Financial year ended 120.7 1.1 (1.6)
Profit before taxation
June 2008 727.1 479.0 77.8
March 2008 827.6 487.2 111.8
Financial year ended 2,300.0 1,510.1 282.1
Mining and income
taxation
June 2008 222.2 142.2 27.6
March 2008 267.1 144.6 35.9
Financial year ended 717.7 435.5 94.7
- Normal taxation
June 2008 229.1 182.7 20.2
March 2008 102.5 55.9 20.2
Financial year ended 478.0 331.3 54.3
- Deferred taxation
June 2008 (6.9) (40.5) 7.4
March 2008 164.6 88.7 15.7
Financial year ended 239.7 104.2 40.4
Profit before
exceptional items
June 2008 504.9 336.8 50.2
March 2008 560.5 342.6 75.9
Financial year ended 1,582.3 1,074.6 187.4
Exceptional items
June 2008 (52.6) - -
March 2008 0.4 - -
Financial year ended (52.0) - -
Net profit
June 2008 452.3 336.8 50.2
March 2008 560.9 342.6 75.9
Financial year ended 1,530.3 1,074.6 187.4
Net profit excluding
gains and losses on
foreign exchange,
financial instruments
and exceptional items
June 2008 490.6 336.7 50.2
March 2008 566.3 348.7 74.0
Financial year ended 1,564.5 1,069.0 184.7
Capital expenditure
June 2008 917.7 522.9 44.7
March 2008 708.0 397.1 56.0
Financial year ended 2,770.7 1,541.0 204.2
Planned for next six
months to
December 2008 1,909.6 1,105.6 107.2
Discontinued
International Operations Operations ##
South African Rand
Australia # Venezuela
St Ives Agnew Choco 10
Operating Results
Ore milled/treated
(000 tons)
June 2008 1,733 339 -
March 2008 1,884 329 -
Financial year ended 7,233 1,315 761
Yield (grams per ton)
June 2008 1.8 5.0 -
March 2008 1.7 4.6 -
Financial year ended 1.8 4.8 1.4
Gold produced (kilograms)
June 2008 3,156 1,697 -
March 2008 3,231 1,524 -
Financial year ended 12,992 6,336 1,052
Gold sold (kilograms)
June 2008 3,156 1,697 -
March 2008 3,231 1,524 -
Financial year ended 12,992 6,336 1,033
Gold price received
(Rand per kilogram)
June 2008 221,578 221,567 -
March 2008 217,487 219,948 -
Financial year ended 191,425 193,876 290,029
Total cash costs
(Rand per kilogram)
June 2008 165,558 112,905 -
March 2008 141,721 113,189 -
Financial year ended 136,122 104,040 170,281
Total production
costs (Rand per
kilogram)
June 2008 194,869 -
March 2008 176,614 -
Financial year ended 171,673 184,608
Operating costs
(Rand per ton)
June 2008 292 561 -
March 2008 240 468 -
Financial year ended 243 456 251
Financial Results
(Rand million)
Revenue
June 2008 699.3 376.0 -
March 2008 702.7 335.2 -
Financial year ended 2,487.0 1,228.4 299.6
Operating costs, net
June 2008 526.5 197.4 -
March 2008 471.9 193.9 -
Financial year ended 1,805.4 747.9 199.9
- Operating costs
June 2008 506.5 190.1 -
March 2008 451.4 154.1 -
Financial year ended 1,755.0 600.0 191.3
- Gold inventory
change
June 2008 20.0 7.3 -
March 2008 20.5 39.8 -
Financial year ended 50.4 147.9 8.6
Operating profit
June 2008 172.8 178.6 -
March 2008 230.8 141.3 -
Financial year ended 681.9 480.5 99.7
Amortisation of
mining assets
June 2008 218.1 -
March 2008 176.4 -
Financial year ended 775.5 14.8
Net operating profit
June 2008 133.3 -
March 2008 195.7 -
Financial year ended 386.6 84.9
Other income/(expense)
June 2008 37.0 -
March 2008 32.9 -
Financial year ended 121.2 (29.6)
Profit before taxation
June 2008 170.3 -
March 2008 228.6 -
Financial year ended 507.8 55.3
Mining and income
taxation
June 2008 52.4 -
March 2008 86.6 -
Financial year ended 187.5 6.8
- Normal taxation
June 2008 26.2 -
March 2008 26.4 -
Financial year ended 92.4 5.9
- Deferred taxation
June 2008 26.2 -
March 2008 60.2 -
Financial year ended 95.1 0.9
Profit before
exceptional items
June 2008 117.9 -
March 2008 142.0 -
Financial year ended 320.3 48.5
Exceptional items
June 2008 (52.6) -
March 2008 0.4 -
Financial year ended (52.0) -
Net profit
June 2008 65.3 -
March 2008 142.4 -
Financial year ended 268.3 48.5
Net profit excluding
gains and losses on
foreign exchange,
financial instruments
and exceptional items
June 2008 103.7 -
March 2008 143.6 -
Financial year ended 310.8 47.4
Capital expenditure
June 2008 259.4 90.7 -
March 2008 198.5 56.4 -
Financial year ended 784.5 241.0 70.0
Planned for next six
months to
December 2008 521.6 175.2 -
# 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 South African Operations
Total Mine
Operations Total Driefontein
Operating Results
Ore milled/treated (000 tons)
June 2008 12,259 3,661 1,545
March 2008 12,376 3,166 1,426
Financial year ended 49,615 14,516 5,981
Yield (ounces per ton)
June 2008 0.076 0.151 0.141
March 2008 0.072 0.164 0.147
Financial year ended 0.078 0.167 0.155
Gold produced (000 ounces)
June 2008 927.9 553.2 218.2
March 2008 890.3 519.8 209.9
Financial year ended 3,880.8 2,419.1 928.0
Gold sold (000 ounces)
June 2008 927.9 553.2 218.2
March 2008 890.3 519.8 209.9
Financial year ended 3,880.8 2,419.1 928.0
Gold price received
(dollars per ounce)
June 2008 895 901 900
March 2008 921 930 933
Financial year ended 816 811 815
Total cash costs
(dollars per ounce)
June 2008 502 488 414
March 2008 513 523 438
Financial year ended 476 467 412
Total production costs
(dollars per ounce)
June 2008 608 581 502
March 2008 619 622 516
Financial year ended 583 564 496
Operating costs
(dollars per ton)
June 2008 39 77 62
March 2008 38 90 68
Financial year ended 38 82 67
Financial Results ($ million)
Revenue
June 2008 836.3 500.7 197.8
March 2008 821.1 481.5 195.8
Financial year ended 3,165.0 1,962.0 756.8
Operating costs, net
June 2008 481.6 282.3 95.2
March 2008 473.9 283.4 96.4
Financial year ended 1,921.5 1,184.4 403.4
- Operating costs
June 2008 484.1 282.3 95.2
March 2008 468.4 283.4 96.4
Financial year ended 1,909.7 1,184.4 403.4
- Gold inventory change
June 2008 (2.5) - -
March 2008 5.5 - -
Financial year ended 11.8 - -
Operating profit
June 2008 354.7 218.4 102.6
March 2008 347.2 198.1 99.6
Financial year ended 1,243.5 777.6 353.4
Amortisation of mining assets
June 2008 95.3 49.6 18.6
March 2008 88.1 49.5 15.5
Financial year ended 395.1 228.9 75.4
Net operating profit
June 2008 259.5 168.8 84.0
March 2008 259.0 148.6 84.1
Financial year ended 848.4 548.7 278.0
Other income/(expenses)
June 2008 (1.0) (5.5) (2.4)
March 2008 (14.9) (18.2) (6.0)
Financial year ended (20.0) (36.7) (13.8)
Profit before taxation
June 2008 258.5 163.3 81.6
March 2008 244.1 130.4 78.1
Financial year ended 828.4 512.0 264.2
Mining and income taxation
June 2008 86.6 57.6 31.2
March 2008 78.7 41.9 24.6
Financial year ended 277.1 178.4 94.3
- Normal taxation
June 2008 67.0 36.3 23.9
March 2008 43.2 29.3 18.3
Financial year ended 179.3 113.6 68.9
- Deferred taxation
June 2008 19.6 21.3 7.4
March 2008 35.5 12.6 6.3
Financial year ended 97.8 64.8 25.5
Profit before exceptional items
June 2008 171.9 105.7 50.4
March 2008 165.5 88.4 53.4
Financial year ended 551.3 333.5 169.8
Exceptional items
June 2008 (13.3) (6.0) 3.0
March 2008 (5.7) (5.9) (6.3)
Financial year ended (14.7) (7.5) (0.2)
Net profit
June 2008 158.6 99.7 53.3
March 2008 159.6 82.5 47.1
Financial year ended 536.7 326.0 169.5
Net profit excluding gains
and losses on
foreign exchange, financial
instruments and
exceptional items
June 2008 167.2 103.0 51.4
March 2008 163.8 86.0 50.9
Financial year ended 546.7 331.5 169.8
Capital expenditure
June 2008 238.6 118.1 39.4
March 2008 200.0 104.5 30.2
Financial year ended 831.6 450.5 139.8
Planned for next six
months to December 2008 474.6 235.9 60.2
Operating and financial results
United States Dollars South African Operations
Kloof Beatrix South Deep
Operating Results
Ore milled/treated (000 tons)
June 2008 1,143 778 195
March 2008 808 656 276
Financial year ended 3,953 3,215 1,367
Yield (ounces per ton)
June 2008 0.157 0.152 0.192
March 2008 0.217 0.125 0.191
Financial year ended 0.208 0.136 0.170
Gold produced (000 ounces)
June 2008 179.3 118.3 37.5
March 2008 175.5 81.7 52.6
Financial year ended 820.9 438.1 232.1
Gold sold (000 ounces)
June 2008 179.3 118.3 37.5
March 2008 175.5 81.7 52.6
Financial year ended 820.9 438.1 232.1
Gold price received
(dollars per ounce)
June 2008 899 905 900
March 2008 919 946 927
Financial year ended 805 821 795
Total cash costs
(dollars per ounce)
June 2008 477 478 1,002
March 2008 470 668 811
Financial year ended 430 515 727
Total production costs
(dollars per ounce)
June 2008 583 578 1,042
March 2008 570 775 984
Financial year ended 531 610 866
Operating costs
(dollars per ton)
June 2008 78 76 199
March 2008 107 88 159
Financial year ended 94 74 127
Financial Results ($ million)
Revenue
June 2008 161.3 108.8 32.8
March 2008 160.4 76.6 48.5
Financial year ended 660.9 359.7 184.6
Operating costs, net
June 2008 89.3 59.3 38.5
March 2008 86.0 57.3 43.7
Financial year ended 370.0 237.2 173.8
- Operating costs
June 2008 89.3 59.3 38.5
March 2008 86.0 57.3 43.7
Financial year ended 370.0 237.2 173.8
- Gold inventory change
June 2008 - - -
March 2008 - - -
Financial year ended - - -
Operating profit
June 2008 72.0 49.5 (5.7)
March 2008 74.4 19.2 4.9
Financial year ended 290.9 122.5 10.8
Amortisation of mining assets
June 2008 18.4 11.7 0.8
March 2008 16.8 8.3 8.9
Financial year ended 81.3 40.2 31.9
Net operating profit
June 2008 53.5 37.7 (6.5)
March 2008 57.7 10.9 (4.0)
Financial year ended 209.5 82.2 (21.1)
Other income/(expenses)
June 2008 (0.9) (0.8) (1.5)
March 2008 (6.6) (5.2) (0.5)
Financial year ended (10.5) (8.7) (3.8)
Profit before taxation
June 2008 52.7 37.0 (8.0)
March 2008 51.1 5.7 (4.5)
Financial year ended 199.1 73.6 (24.9)
Mining and income taxation
June 2008 18.6 14.6 (6.8)
March 2008 17.0 2.1 (1.8)
Financial year ended 68.8 28.4 (13.1)
- Normal taxation
June 2008 12.3 0.1 -
March 2008 11.0 - -
Financial year ended 44.5 0.2 -
- Deferred taxation
June 2008 6.3 14.5 (6.8)
March 2008 6.0 2.1 (1.8)
Financial year ended 24.3 28.2 (13.1)
Profit before exceptional items
June 2008 34.1 22.4 (1.2)
March 2008 34.1 3.6 (2.7)
Financial year ended 130.3 45.2 (11.8)
Exceptional items
June 2008 - - (9.0)
March 2008 - 0.4 -
Financial year ended 0.1 0.5 (7.9)
Net profit
June 2008 34.1 22.4 (10.2)
March 2008 34.1 4.0 (2.7)
Financial year ended 130.4 45.7 (19.7)
Net profit excluding gains
and losses on
foreign exchange, financial
instruments and
exceptional items
June 2008 34.0 22.5 (4.9)
March 2008 34.1 3.7 (2.7)
Financial year ended 130.3 45.4 (14.0)
Capital expenditure
June 2008 31.3 19.5 27.9
March 2008 28.2 20.0 26.2
Financial year ended 123.5 79.3 107.9
Planned for next six
months to December 2008 70.6 42.1 63.0
Average exchange rates were US$1 = R7.77 and US$1 = R7.45 for the June 2008 and
March 2008 quarters respectively. The Australian dollar exchange rates were A$1
= R7.33 and A$1 = R6.73 for the June 2008 and March 2008 quarters respectively.
# As a significant portion of the acquisition price was allocated to tenements
of St Ives and Agnew on endowment ounces and also as these two Australian
operations are entitled to transfer and then off-set tax losses from one
company to another, it is not meaningful to split the income statement below
operating profit. Figures may not add as they are rounded independently. ##
Discontinued operations are excluded from Total International and Total Mine
Operations.
Operating and financial results
United States Dollars
International Operations
Ghana
Total Tarkwa Damang
Operating Results
Ore milled/treated
(000 tons)
June 2008 8,598 5,469 1,057
March 2008 9,210 5,765 1,232
Financial year ended 35,099 22,035 4,516
Yield (ounces per ton)
June 2008 0.044 0.031 0.047
March 2008 0.040 0.029 0.043
Financial year ended 0.042 0.029 0.043
Gold produced
(000 ounces)
June 2008 374.7 168.6 50.0
March 2008 370.5 165.1 52.6
Financial year ended 1,461.7 646.1 194.2
Gold sold (000 ounces)
June 2008 374.7 168.6 50.0
March 2008 370.5 165.1 52.6
Financial year ended 1,461.7 646.1 194.2
Gold price received
June 2008 886 885 887
(dollars per ounce)
March 2008 909 907 909
Financial year ended 823 823 826
Total cash costs
June 2008 522 443 578
(dollars per ounce)
March 2008 500 436 546
Financial year ended 492 430 551
Total production costs
June 2008 647 514 683
(dollars per ounce)
March 2008 615 503 613
Financial year ended 616 500 623
Operating costs
June 2008 23 14 31
(dollars per ton)
March 2008 20 13 25
Financial year ended 21 13 26
Financial Results
($ million)
Revenue
June 2008 335.6 151.1 44.8
March 2008 339.6 151.1 48.4
Financial year ended 1,203.0 531.5 160.4
Operating costs, net
June 2008 199.2 76.0 29.3
March 2008 190.5 71.7 29.4
Financial year ended 737.1 278.3 107.5
- Operating costs
June 2008 201.7 77.8 33.3
March 2008 185.0 72.6 31.0
Financial year ended 725.3 283.2 118.1
- Gold inventory
change
June 2008 (2.5) (1.8) (4.0)
March 2008 5.5 (0.9) (1.7)
Financial year ended
Operating profit 11.8 (4.9) (10.6)
June 2008 136.4 75.1 15.5
March 2008 149.1 79.4 19.0
Financial year ended 465.9 253.2 52.9
Amortisation of
mining assets
June 2008 45.7 12.0 5.4
March 2008 38.6 11.8 3.6
Financial year ended 166.2 45.6 13.9
Net operating profit
June 2008 90.7 63.1 10.1
March 2008 110.4 67.6 15.5
Financial year ended 299.7 207.6 39.0
Other income/(expenses)
June 2008 4.5 (0.3) -
March 2008 3.3 (1.1) -
Financial year ended 16.7 0.2 (0.1)
Profit before taxation
June 2008 95.2 62.7 10.1
March 2008 113.8 66.5 15.5
Financial year ended 316.4 207.7 38.9
Mining and income
taxation
June 2008 29.0 18.6 3.6
March 2008 36.7 19.8 4.9
Financial year ended 98.7 59.9 13.0
- Normal taxation
June 2008 30.7 24.7 2.7
March 2008 13.9 7.5 2.8
Financial year ended 65.7 45.6 7.5
- Deferred taxation
June 2008 (1.7) (6.1) 1.0
March 2008 22.9 12.3 2.1
Financial year ended 33.0 14.3 5.6
Profit before
exceptional items
June 2008 66.2 44.1 6.5
March 2008 77.1 46.8 10.5
Financial year ended 217.7 147.8 25.9
Exceptional items
June 2008 (7.3) - -
March 2008 0.1 - -
Financial year ended (7.2) - -
Net profit
June 2008 58.9 44.1 6.5
March 2008 77.1 46.8 10.5
Financial year ended 210.6 147.8 25.9
Net profit excluding
gains and losses
on foreign exchange,
financial
instruments and
exceptional items
June 2008 64.2 44.0 6.5
March 2008 77.8 47.6 10.2
Financial year ended 215.2 147.0 25.4
Capital expenditure
June 2008 120.5 68.8 5.7
March 2008 95.4 53.6 7.5
Financial year ended 381.1 212.0 28.1
Planned for next six
months to December 2008 238.7 138.2 13.4
International Operations
Australia #
St Ives Agnew
Operating Results
Ore milled/treated
(000 tons)
June 2008 1,733 339
March 2008 1,884 329
Financial year ended 7,233 1,315
Yield (ounces per ton)
June 2008 0.059 0.161
March 2008 0.055 0.149
Financial year ended 0.058 0.155
Gold produced
(000 ounces)
June 2008 101.5 54.6
March 2008 103.9 49.0
Financial year ended 417.7 203.7
Gold sold (000 ounces)
June 2008 101.5 54.6
March 2008 103.9 49.0
Financial year ended 417.7 203.7
Gold price received
June 2008 887 887
(dollars per ounce)
March 2008 908 918
Financial year ended 819 829
Total cash costs
June 2008 663 452
(dollars per ounce)
March 2008 592 473
Financial year ended 582 445
Total production costs
June 2008 780
(dollars per ounce)
March 2008 737
Financial year ended 734
Operating costs
June 2008 38 72
(dollars per ton)
March 2008 32 63
Financial year ended 33 63
Financial Results
($ million)
Revenue
June 2008 90.6 49.1
March 2008 94.8 45.3
Financial year ended 342.1 169.0
Operating costs, net
June 2008 68.5 25.4
March 2008 63.4 26.0
Financial year ended 248.4 102.9
- Operating costs
June 2008 65.8 24.8
March 2008 60.6 20.8
Financial year ended 241.5 82.5
- Gold inventory
change
June 2008 2.7 0.5
March 2008 2.8 5.3
Financial year ended
Operating profit 6.9 20.3
June 2008 22.1 23.7
March 2008 31.5 19.3
Financial year ended 93.7 66.1
Amortisation of
mining assets
June 2008 28.3
March 2008 23.4
Financial year ended 106.7
Net operating profit
June 2008 17.5
March 2008 27.3
Financial year ended 53.1
Other income/(expenses)
June 2008 4.9
March 2008 4.4
Financial year ended 16.7
Profit before taxation
June 2008 22.3
March 2008 31.8
Financial year ended 69.7
Mining and income
taxation
June 2008 6.8
March 2008 12.0
Financial year ended 25.8
- Normal taxation
June 2008 3.4
March 2008 3.6
Financial year ended 12.7
- Deferred taxation
June 2008 3.4
March 2008 8.4
Financial year ended 13.1
Profit before
exceptional items
June 2008 15.6
March 2008 19.8
Financial year ended 44.0
Exceptional items
June 2008 (7.3)
March 2008 0.1
Financial year ended (7.2)
Net profit
June 2008 8.3
March 2008 19.9
Financial year ended 36.8
Net profit excluding
gains and losses
on foreign exchange,
financial
instruments and
exceptional items
June 2008 13.7
March 2008 19.9
Financial year ended 42.8
Capital expenditure
June 2008 34.0 12.0
March 2008 26.8 7.6
Financial year ended 107.9 33.1
Planned for next six
months to December 2008 65.2 21.9
Australian Dollars Discontinued
operations
Australia # Venezuela ##
St Ives Agnew Choco 10
Operating Results
Ore milled/treated
(000 tons)
June 2008 1,733 339 -
March 2008 1,884 329 -
Financial year ended 7,233 1,315 761
Yield (ounces per ton)
June 2008 0.059 0.161 -
March 2008 0.055 0.149 -
Financial year ended 0.058 0.155 0.044
Gold produced
(000 ounces)
June 2008 101.5 54.6 -
March 2008 103.9 49.0 -
Financial year ended 417.7 203.7 33.8
Gold sold (000 ounces)
June 2008 101.5 54.6 -
March 2008 103.9 49.0 -
Financial year ended 417.7 203.7 33.2
Gold price received
June 2008 949 949 -
(dollars per ounce)
March 2008 1,005 1,017 -
Financial year ended 913 925 1,241
Total cash costs
June 2008 702 479 -
(dollars per ounce)
March 2008 655 523 -
Financial year ended 649 496 729
Total production costs
June 2008 827 -
(dollars per ounce)
March 2008 816 -
Financial year ended 819 789
Operating costs
June 2008 40 77 -
(dollars per ton)
March 2008 36 70 -
Financial year ended 37 70 35
Financial Results
($ million)
Revenue
June 2008 95.8 52.2 -
March 2008 105.6 50.4 -
Financial year ended 381.4 188.4 41.2
Operating costs, net
June 2008 72.6 26.7 -
March 2008 70.4 28.8 -
Financial year ended 276.9 114.7 27.5
- Operating costs
June 2008 69.8 26.5 -
March 2008 67.2 23.1 -
Financial year ended 269.2 92.0 26.3
- Gold inventory
change
June 2008 2.8 0.2 -
March 2008 3.2 5.8 -
Financial year ended
Operating profit 7.7 22.7 1.2
June 2008 23.2 25.5 -
March 2008 35.2 21.5 -
Financial year ended 104.5 73.7 13.7
Amortisation of
mining assets
June 2008 29.9 -
March 2008 25.8 -
Financial year ended 118.9 2.0
Net operating profit
June 2008 18.8 -
March 2008 30.9 -
Financial year ended 59.3 11.7
Other income/(expenses)
June 2008 5.1 -
March 2008 5.0 -
Financial year ended 18.6 (4.1)
Profit before taxation
June 2008 23.9 -
March 2008 35.8 -
Financial year ended 77.9 7.6
Mining and income
taxation
June 2008 7.2 -
March 2008 13.6 -
Financial year ended 28.8 0.9
- Normal taxation
June 2008 3.6 -
March 2008 4.0 -
Financial year ended 14.2 0.8
- Deferred taxation
June 2008 3.6 -
March 2008 9.6 -
Financial year ended 14.6 0.1
Profit before
exceptional items
June 2008 16.7 -
March 2008 22.2 -
Financial year ended 49.1 6.7
Exceptional items
June 2008 (8.1) -
March 2008 0.1 -
Financial year ended (8.0) -
Net profit
June 2008 8.7 -
March 2008 22.3 -
Financial year ended 41.2 6.7
Net profit excluding
gains and losses
on foreign exchange,
financial
instruments and
exceptional items
June 2008 14.6 -
March 2008 22.6 -
Financial year ended 47.7 6.5
Capital expenditure
June 2008 36.4 13.0 -
March 2008 29.7 8.4 -
Financial year ended 120.3 37.0 9.6
Planned for next six
months to December 2008 68.1 22.9 -
Underground and surface
South African rand and metric units
Operating Results
South African Operations
Total Mine
Operations Total Driefontein Kloof
Ore milled / treated
(000 ton)
- underground
June 2008 2,749 2,379 760 688
March 2008 2,468 2,096 669 521
Financial year ended 12,017 10,495 3,273 2,941
- surface
June 2008 9,510 1,282 785 455
March 2008 9,908 1,070 757 287
Financial year ended 37,598 4,021 2,708 1,012
- total
June 2008 12,259 3,661 1,545 1,143
March 2008 12,376 3,166 1,426 808
Financial year ended 49,615 14,516 5,981 3,953
Yield (grams per ton)
- underground
June 2008 6.7 6.8 8.2 7.5
March 2008 6.9 7.2 8.6 9.9
Financial year ended 6.7 6.8 8.1 8.4
- surface
June 2008 1.1 0.8 0.7 0.9
March 2008 1.1 1.1 1.1 1.1
Financial year ended 1.1 0.9 0.8 0.9
- combined
June 2008 2.4 4.7 4.4 4.9
March 2008 2.2 5.1 4.6 6.8
Financial year ended 2.4 5.2 4.8 6.5
Gold produced
(kilograms)
- underground
June 2008 18,517 16,188 6,211 5,168
March 2008 17,094 15,013 5,721 5,145
Financial year ended 80,413 71,770 26,591 24,587
- surface
June 2008 10,344 1,020 575 409
March 2008 10,598 1,154 809 313
Financial year ended 40,294 3,473 2,274 946
- total
June 2008 28,861 17,208 6,786 5,577
March 2008 27,692 16,167 6,530 5,458
Financial year ended 120,707 75,243 28,865 25,533
Operating costs
(Rand per ton)
- underground
June 2008 887 886 896 970
March 2008 941 974 984 1,206
Financial year ended 780 792 830 893
- surface
June 2008 138 70 78 59
March 2008 119 79 86 63
Financial year ended 120 73 79 62
- total
June 2008 306 600 480 607
March 2008 283 672 507 800
Financial year ended 280 593 490 680
South African Operations
South
Beatrix Deep Total
Ore milled / treated
(000 ton)
- underground
June 2008 778 153 370
March 2008 656 250 372
Financial year ended 3,215 1,066 1,522
- surface
June 2008 - 42 8,228
March 2008 - 26 8,838
Financial year ended - 301 33,577
- total
June 2008 778 195 8,598
March 2008 656 276 9,210
Financial year ended 3,215 1,367 35,099
Yield (grams per ton)
- underground
June 2008 4.7 7.4 6.3
March 2008 3.9 6.4 5.6
Financial year ended 4.2 6.5 5.7
- surface
June 2008 - 0.9 1.1
March 2008 - 1.2 1.1
Financial year ended - 0.8 1.1
- combined
June 2008 4.7 6.0 1.4
March 2008 3.9 5.9 1.3
Financial year ended 4.2 5.3 1.3
Gold produced
(kilograms)
- underground
June 2008 3,678 1,131 2,329
March 2008 2,542 1,605 2,081
Financial year ended 13,625 6,967 8,643
- surface
June 2008 - 36 9,324
March 2008 - 32 9,444
Financial year ended - 253 36,821
- total
June 2008 3,678 1,167 11,653
March 2008 2,542 1,637 11,525
Financial year ended 13,625 7,220 45,464
Operating costs
(Rand per ton)
- underground
June 2008 591 1,958 897
March 2008 655 1,303 753
Financial year ended 536 1,170 691
- surface
June 2008 - 52 148
March 2008 - 50 124
Financial year ended - 54 126
- total
June 2008 591 1,548 180
March 2008 655 1,185 149
Financial year ended 536 924 150
International Operations
Ghana Australia
Tarkwa Damang St Ives Agnew
Ore milled / treated
(000 ton)
- underground
June 2008 - - 184 186
March 2008 - - 234 138
Financial year ended - - 993 529
- surface
June 2008 5,469 1,057 1,549 153
March 2008 5,765 1,232 1,650 191
Financial year ended 22,035 4,516 6,240 786
- total
June 2008 5,469 1,057 1,733 339
March 2008 5,765 1,232 1,884 329
Financial year ended 22,035 4,516 7,233 1,315
Yield (grams per ton)
- underground
June 2008 - - 4.5 8.1
March 2008 - - 4.5 7.4
Financial year ended - - 4.4 8.1
- surface
June 2008 1.0 1.5 1.5 1.3
March 2008 0.9 1.3 1.3 2.6
Financial year ended 0.9 1.3 1.4 2.6
- combined
June 2008 1.0 1.5 1.8 5.0
March 2008 0.9 1.3 1.7 4.6
Financial year ended 0.9 1.3 1.8 4.8
Gold produced
(kilograms)
- underground
June 2008 - - 831 1,498
March 2008 - - 1,056 1,025
Financial year ended - - 4,351 4,292
- surface
June 2008 5,245 1,555 2,325 199
March 2008 5,135 1,635 2,175 499
Financial year ended 20,095 6,041 8,641 2,044
- total
June 2008 5,245 1,555 3,156 1,697
March 2008 5,135 1,635 3,231 1,524
Financial year ended 20,095 6,041 12,992 6,336
Operating costs
(Rand per ton)
- underground
June 2008 - - 874 919
March 2008 - - 725 801
Financial year ended - - 637 793
- surface
June 2008 109 242 223 125
March 2008 94 187 171 228
Financial year ended 93 190 180 230
- total
June 2008 109 242 292 561
March 2008 94 187 240 468
Financial year ended 93 190 243 456
International Operations
Discontinued
Operations
Venezuela##
Choco 10
Ore milled / treated
(000 ton)
- underground
June 2008 -
March 2008 -
Financial year ended -
- surface
June 2008 -
March 2008 -
Financial year ended 761
- total
June 2008 -
March 2008 -
Financial year ended 761
Yield (grams per ton)
- underground
June 2008 -
March 2008 -
Financial year ended -
- surface
June 2008 -
March 2008 -
Financial year ended 1.4
- combined
June 2008 -
March 2008 -
Financial year ended 1.4
Gold produced
(kilograms)
- underground
June 2008 -
March 2008 -
Financial year ended -
- surface
June 2008 -
March 2008 -
Financial year ended 1,052
- total
June 2008 -
March 2008 -
Financial year ended 1,052
Operating costs
(Rand per ton)
- underground
June 2008 -
March 2008 -
Financial year ended -
- surface
June 2008 -
March 2008 -
Financial year ended 251
- total
June 2008 -
March 2008 -
Financial year ended 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
June 2008 quarter
Carbon Main VCR
Reef Leader
Advanced (m) 4,066 846 1,625
Advanced on reef (m) 836 364 149
Sampled (m) 912 300 108
Channel width (cm) 73 51 123
Average value - (g/t) 24.5 11.5 22.0
- (cm.g/t) 1,792 590 2,700(1)
March 2008 quarter
Carbon Main VCR
Reef 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
Year ended F2008
Carbon Main VCR
Reef Leader
Advanced (m) 16,867 3,867 6,725
Advanced on reef (m) 2,942 1,868 951
Sampled (m) 2,859 1,563 693
Channel width (cm) 62 42 80
Average value - (g/t) 24.6 11.5 24.3
- (cm.g/t) 1,522 487 1,954
Kloof June 2008 quarter
Cobble Kloof Main VCR
Reef
Advanced (m) - 170 1,273 6,339
Advanced on reef (m) - 41 228 770
Sampled (m) - 60 294 693
Channel width (cm) - 135 37 105
Average value - (g/t) - 2.1 17.0 17.6
- (cm.g/t) - 290 633(2) 1,849
March 2008 quarter
Cobble Kloof Main VCR
Reef
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
Year ended F2008
Cobble Kloof Main VCR
Reef
Advanced (m) 120 1,017 5,830 26,615
Advanced on reef (m) 105 137 1,296 3,432
Sampled (m) 105 138 1,233 3,046
Channel width (cm) 175 127 83 101
Average value - (g/t) 5.5 1.8 12.8 20.2
- (cm.g/t) 956 232 1,055 2,040
Beatrix June 2008 quarter
Reef Beatrix Kalkoenkrans
Advanced (m) 7,301 2,352
Advanced on reef (m) 1,490 469
Sampled (m) 1,014 417
Channel width (cm) 69 108
Average value - (g/t) 9.1 11.6
- (cm.g/t) 628(3) 1,253(3)
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
Year ended F2008
Reef Beatrix Kalkoenkrans
Advanced (m) 31,248 9,551
Advanced on reef (m) 7,058 1,279
Sampled (m) 6,495 1,176
Channel width (cm) 92 115
Average value - (g/t) 9.0 14.9
- (cm.g/t) 835 1,716
South Deep June 2008 quarter
Reef VCR Elsburg
Advanced (m) 300 689
Advanced on reef (m) - 680
Sampled (m) - -
Channel width (cm) - -(4)
Average value - (g/t) - 6.7
- (cm.g/t) - -(5)
March 2008 quarter
Reef VCR Elsburg
Advanced (m) 534 697
Advanced on reef (m) 25 537
Sampled (m) 15 -
Channel width (cm) 24 -(4)
Average value - (g/t) 3.8 6.5
- (cm.g/t) 91 -(5)
Year ended F2008
Reef VCR Elsburg
Advanced (m) 2,371 3,479
Advanced on reef (m) 221 2,844
Sampled (m) 201 -
Channel width (cm) 70 -(4)
Average value - (g/t) 18.7 6.1
- (cm.g/t) 1,319 -(5)
1) A decrease in value at the VCR in the 4 shaft pillar.
2) MVR traversing lower grade zones.
3) Traversing lower grade areas as anticipated by local geological models.
4) Full channel width not fully exposed in development, hence not reported.
5) Trackless development in the Elsburg reefs is evaluated by means of the
block model.
Date: 01/08/2008 07:05:08 Produced by the JSE SENS Department.
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