| Wed 29 Oct 2008, 7:10 | | GFI - Gold Fields - Short Term Earnings Reduced By Safety Related Measures At |
|
GFI
GOGOF
GFI - Gold Fields - Short Term Earnings Reduced By Safety Related Measures At
The South African Operations
Gold Fields Limited
Incorporated in the Republic of South Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN: ZAE 000018123
SHORT TERM EARNINGS REDUCED BY SAFETY
RELATED MEASURES AT THE SOUTH AFRICAN OPERATIONS
JOHANNESBURG. 29 October 2008, Gold Fields Limited (NYSE & JSE: GFI) today
announced normalised earnings excluding gains and losses on foreign exchange,
financial instruments, exceptional items, share of loss of associates after
taxation and discontinued operations for the September 2008 quarter of R120
million, compared with earnings of R943 million and R409 million for the June
2008 and September 2007 quarters respectively. In US dollar terms normalised
earnings excluding gains and losses on foreign exchange, financial instruments,
exceptional items, share of loss of associates after taxation and discontinued
operations for the September 2008 quarter were US$16 million, compared with
earnings of US$123 million and US$58 million in the June 2008 and the September
2007 quarters respectively.
September 2008 quarter salient features:
- Improved safety performance;
- Attributable gold production decreased as expected by 8 per cent to 798,000
Ounces; half the shortfall is attributable to short term safety related
rehabilitation in South Africa;
- Cash cost at R153,461 per kilogram (US$617 per ounce) was similar to
guidance while NCE at R226,120 per kilogram (US$909 per ounce) was 8 per cent
better than guidance;
- Rehabilitation of 95 2 West and 95 3 West access ramps at South Deep
completed by the end of September;
- First shipment of concentrate at Cerro Corona took place on 30 September;
- Main shaft infrastructure rehabilitation at Kloof well on track for
completion by end December 2008;
- St Ives` Belleisle achieved full production.
Statement by Nick Holland,
Chief Executive Officer of Gold Fields:
"During the September quarter Gold Fields delivered its best safety performance
ever, indicating that the intense focus on safety is delivering results.
However, despite the significant improvements across all measures, we are not
yet satisfied. Gold Fields remains committed to improving all its safety metrics
and safe production remains the number one priority.
In line with the guidance that we provided for Q1 F2009, our earnings were
reduced significantly by the safety related rehabilitation work at the
Driefontein, Kloof and South Deep mines in South Africa, as well as by higher
costs, driven largely by the annual wage increases in South Africa and the
higher power tariffs in both South Africa and Ghana, along with continued
inflation across the globe.
However, with the rehabilitation work in South Africa as well as the
international growth projects scheduled for completion by the end of December,
we remain on track to achieve our short term target of a run rate of
approximately 1 million attributable equivalent ounces of gold during the March
quarter next year, at an NCE of approximately US$725/oz at R/US$8.00.
A major milestone was achieved post quarter end with Cerro Corona making its
first shipment of concentrate."
Stock data
Number of shares in issue
- at end September 2008 653,243,630
- average for the quarter 653,241,161
Free Float 100%
ADR Ratio 1:1
Bloomberg / Reuters GFISJ / GFLJ.J
JSE Limited - (GFI)
Range - Quarter ZAR58.10 - ZAR102.00
Average Volume - Quarter 2,934,183 shares / day
NYSE - (GFI)
Range - Quarter US$7.16 - US$13.15
Average Volume - Quarter 8,064,404 shares / day
Salient features
SOUTH AFRICAN RAND
Quarter
September June September
2007 2008 2008
Gold produced* kg 30,661 26,896 24,817
Total cash costs R/kg 98,465 125,359 153,461
Notional cash
expenditure R/kg 161,056 217,065 226,120
Tons milled 000 12,350 12,259 12,698
Revenue R/kg 155,333 223,568 217,586
Operating costs R/ton 267 306 333
Operating profit Rm 1,716 2,721 1,574
Operating margin % 34 42 27
Rm 429 843 39
Net earnings
SA c.p.s. 66 129 6
Rm 411 881 39
Headline earnings
SA c.p.s. 63 135 6
Net earnings excluding
gains
Rm 409 943 120
and losses on foreign
exchange,
financial instruments,
SA c.p.s. 63 144 18
exceptional items and
loss of associates after taxation
UNITED STATES DOLLARS
Quarter
September June September
2008 2008 2007
Gold produced* oz (000) 798 865 986
Total cash costs $/oz 617 502 431
Notional cash expenditure $/oz 909 869 706
Tons milled 000 12,698 12,259 12,350
Revenue $/oz 874 895 680
Operating costs $/ton 43 39 38
Operating profit $m 203 355 242
Operating margin % 27 42 34
$m 5 105 60
Net earnings
US c.p.s. 1 16 9
$m 5 111 58
Headline earnings
US c.p.s. 1 17 9
Net earnings excluding
gains
$m 16 123 58
and losses on foreign
exchange,
financial instruments,
US c.p.s. 2 19 9
exceptional items and
share of loss of associates
after taxation
* Attributable - All companies wholly owned except for Ghana (71.1%) and Cerro
Corona (80.7%).
# Prior period operational results have been restated to exclude the
discontinued assets sold during the December 2007 quarter i.e. the Venezuelan
assets (Choco 10).
Health and safety
We deeply regret to report that there were two fatal injuries during the
reporting quarter; one ore pass accident and the other accident due to winches
and rigging. However, all safety statistics improved with the fatal injury
frequency rate for the quarter improving from 0.46 to 0.05 per million hours
worked. The lost time injury frequency rate improved from 6.15 to 4.72, the
serious injury frequency rate improved from 3.30 to 3.04 and the days lost
frequency rate improved from 238 to 209.
The Full Compliance Health and Safety Management System is being revised to
improve safety performance. To monitor this, the frequency of safety audits at
Driefontein, Kloof and Beatrix have been increased to quarterly and South Deep
will be added to the quarterly cycle.
Du Pont, who was tasked to assess the existing health and safety management
systems at Gold Fields and benchmark them against international best practices,
is continuing with their work at the South African operations and is expected
to report back to management during the December quarter.
Safe production remains our number one priority. While significant progress was
made during this quarter, we continue to focus on all of our systems,
procedures and practices with a view to improving our overall safety
performance. Strategies to further prevent the risk of injury are ongoing.
Financial review
Quarter ended 30 September 2008 compared with
quarter ended 30 June 2008
Revenue
Attributable gold production for the September 2008 quarter amounted to 798,000
ounces compared with 865,000 ounces in the June quarter, a decrease of 8 per
cent. This was slightly lower than the guidance given on 1 August, mainly due
to a slower build-up of production at Cerro Corona. Production at the South
African operations decreased from 553,000 ounces to 492,000 ounces or 11 per
cent. Attributable production at the international operations decreased 2 per
cent from 312,000 ounces to 306,000 ounces.
At the South African operations the decrease in gold production in the
September quarter was directly attributable to the rehabilitation programmes at
South Deep, Driefontein and Kloof. At Driefontein, the decrease in gold
production was slightly better than the guidance given in the June quarterly
report, while Kloof achieved 25 per cent above guidance. At Beatrix the 14 per
cent quarter on quarter decline in gold production was due to a lower mine call
factor which resulted in lower yields. The quarter on quarter decline at South
Deep was broadly in line with guidance and resulted from a slower than expected
return to operational stability after completion of the restructuring process.
At the international operations, managed gold production at Tarkwa decreased by
7 per cent due to a build-up of gold-in-process (GIP) in the South Heap leach
pads. At Damang, gold production decreased by 12 per cent due to the unexpected
failure of the pebble crusher, causing blending issues in the mill. This
resulted in an increase in soft blend low grade ore to maintain a balanced
mill-feed mix-ratio and a decrease in yield. Total gold production from Ghana
reduced by 8 per cent quarter on quarter. Gold production from Australia
decreased by 2 per cent. Agnew decreased by 4 per cent mainly due to lower
underground grades as well as lower volumes due to a planned six day
maintenance shutdown. St Ives was marginally down due to a lower recovery at
Lefroy mill but 6 per cent below guidance due to the slow ramp up of Cave Rocks
and poor grade from Argo underground.
The average quarterly US dollar gold price achieved decreased 2 per cent from
US$895 per ounce in the June quarter to US$874 per ounce in the September
quarter. The average rand/US dollar exchange rate of R7.74 was similar to the
R7.77 achieved in the June quarter. As a result of the above factors the rand
gold price weakened from R223,568 per kilogram to R217,586 per kilogram, a 3
per cent decrease. The Australian dollar gold price increased from A$949 per
ounce to A$990 per ounce as the US dollar strengthened against the Australian
dollar from 0.9434 in the June quarter to 0.9005 in the September quarter.
The decrease in the rand gold price achieved, together with the decrease in
production, resulted in revenue of R5,724 million (US$740 million), a decrease
in rand terms of 11 per cent compared with the R6,452 million (US$836 million)
achieved in the June quarter.
Operating costs
Operating costs increased from R3,748 million (US$484 million) in the June
quarter to R4,233 million (US$547 million) in the September quarter. Total cash
costs increased by 22 per cent from R125,359 per kilogram (US$502 per ounce) in
the June quarter to R153,461 per kilogram (US$617 per ounce) in the September
quarter.
At the South African operations, operating costs increased from R2,197 million
(US$282 million) to R2,468 million (US$319 million), an increase of 12 per
cent. This increase was mainly due to the annual wage increase of 10 per cent,
the 20 per cent increase in electricity costs and two months of winter power
tariffs together with less capitalised development costs due to less off reef
development metres associated with the rehabilitation at Kloof and Driefontein.
Total cash costs at the South African operations increased 26 per
cent from R121,984 per kilogram (US$488 per ounce) to 153,581 per kilogram
(US$617 per ounce).
Operating costs at the international operations, including gold-in-process
movements, increased from R1,534 million (US$199 million) to R1,682 million
(US$217 million) in the September quarter, an increase of 10 per cent.
More than half of the 10 per cent increase was attributable to the increase in
power costs in Ghana, with the balance due to fuel, explosive and cyanide price
increases. In Australia, operating costs increased 7 per cent quarter on
quarter due to the full quarter application of the St Ives volume net smelter
royalty, increases in power and reagent costs and an increase in underground
volumes at both St Ives and Agnew. Total cash costs at the international
operations increased by 18 per cent from US$522 per ounce in the June quarter
to US$616 per ounce in the September 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 royalties and
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 manage directly its NCE per ounce and thereby
focus on free cash flow.
The NCE for the Group for the September quarter amounted to R226,120 per
kilogram (US$909 per ounce) compared with R217,065 per kilogram (US$869 per
ounce) in the June quarter, an increase of 4 per cent. These figures include
project expenditure at Cerro Corona. This increase results from the decrease in
gold produced and increase in operating costs, partly offset by the decrease in
capital expenditure as we move towards completing our growth projects at Cerro
Corona, Tarkwa and St Ives.
At the South African operations the NCE increased from R180,712 per kilogram
(US$723 per ounce) in the June quarter to R212,742 per kilogram (US$855 per
ounce) in the September quarter. At the international operations (including
Cerro Corona) the NCE decreased quarter on quarter from US$1,109 per ounce to
US$981 per ounce.
Operating margin
The net effect of the changes in revenue and costs, after taking into account
gold-in-process movements, was a 42 per cent decrease in operating profit
from R2,721 million (US$355 million) to R1,574 million (US$203 million). The
Group operating margin was 27 per cent. The margin at the South African
operations decreased from 43 per cent to 26 per cent, while the margin at the
international operations decreased from 41 per cent to 30 per cent.
Amortisation
Amortisation increased from R778 million (US$100 million) in the June
quarter to R902 million (US$116 million) in the September quarter. At the
South African operations amortisation increased from R390 million (US$50
million) to R462 million (US$60 million). This was mainly due to a R50 million
credit in the June quarter at South Deep to reverse over provisions at year
end and an increase of R30 million quarter on quarter at Kloof due to an
acceleration in amortisation of short life ore reserve.
This was partially offset by a decrease in normal amortisation because of the
lower gold production. At the international operations amortisation increased
by R50 million from R352 million (US$46 million) to R402 million (US$52
million) mainly due to the addition from Cerro Corona of R31 million (US$4
million), an increase in rates at Tarkwa and at St Ives, due to increased
mining from Cave Rocks and Belleisle, partially offset by lower production
from the Damang pit cutback.
Other
Net interest paid was R112 million (US$14
million) for the September quarter compared with negative R15 million (US$2
million) in the June quarter. This increase was due to increased interest paid
at the South African operations because of the higher debt levels and a
reduction in the capitalization on qualifying interest. The share of loss of
associates after taxation increased by R72 million (US$10 million) from R32
million (US$4 million) in the June quarter to R104 million (US$14 million) in
the September quarter. This increase relates to further losses incurred by
Rusoro.
The loss on foreign exchange decreased from R7 million (US$1 million) in the
June quarter to R6 million (US$1 million) in the September quarter. Both
result from the conversion of offshore cash holdings into the functional
currency i.e. rands.
The loss on financial instruments for the quarter at R56 million (US$7 million)
compares with a gain of R2 million (US$ nil) in the June quarter. The loss in
the September quarter was mainly due to a mark to market loss on a diesel
hedge in Ghana and Australia which amounted to R37 million (US$5 million)
and R16 million (US$2 million) respectively.
Other costs increased from R76 million (US$10 million) to R115 million
(US$15 million) mainly due to the increase in share based payments. The 2008
allocations were accounted for in full this quarter as opposed to only one month
included in the June quarter and increased research and development on the drive
to increase the use of technology in the Group.
Exploration
Exploration expenditure, decreased from R107 million (US$14 million) in the
June quarter to R68 million (US$9 million) in the September quarter. This
decrease was due to lower expenditure in Australia, due to timing mainly at
Lachlan and Mt Carlton and the fact that exploration expenditure tends to vary
in line with activity. Refer to the Exploration and Corporate Development
section for more detail.
Exceptional items
The exceptional gain in the September quarter amounted to R114 million (US$15
million) compared with a loss of R95 million (US$17 million) in the June
quarter. The gain in the September quarter relates to a R132 million (US$17
million) insurance claim, partially offset by an additional R18 million (US$2
million) restructuring costs, both at South Deep. The loss in the June quarter
comprised mainly 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. This was partially offset by the reversal of an over provision of
R21 million (US$3 million) on the 9 shaft project at Driefontein.
Taxation
Taxation for the quarter amounted to R257 million (US$33 million) compared with
R664 million (US$87 million) in the June quarter. The decrease reflects the
decrease in profit before tax for the quarter. The tax provision includes
normal and deferred taxation on all operations together with government
royalties at the international operations.
Earnings
Net profit attributable to ordinary shareholders amounted to R39 million (US$5
million) or 6 SA cents per share (US$0.01 per share), compared with R843
million (US$105 million) or 129 SA cents per share (US$0.16 per share) in the
June quarter.
Headline earnings i.e. earnings less the after tax effect of asset sales,
impairments, the sale of investments and discontinued operations, was R39
million (US$5 million) or 6 SA cents per share (US$0.01 per share), compared
with earnings of R881 million (US$111 million) or 135 SA cents per share
(US$0.17 per share) in the June quarter.
Earnings excluding exceptional items as well as net gains and losses on foreign
exchange, financial instruments, loss of associates after taxation and
discontinued operations amounted to R120 million (US$16 million) or 18 SA cents
per share (US$0.02 per share), compared with earnings of R943 million (US$123
million) or 144 SA cents per share (US$0.19 per share) reported in the June
quarter.
Cash flow
The cash outflow from operating activities for the quarter amounted to R32
million (US$1 million), compared with a cash inflow of R2,568 million (US$334
million) in the June quarter. This quarter on quarter decrease of R2,600
million (US$335 million) is due mainly to the decrease in profit before tax of
R1,287 million (US$166 million), a working capital outflow of R577 million
(US$75 million) in the September quarter compared with an inflow of R263
million (US$36 million) in the June quarter and an increase in taxation paid
from R195 million (US$28 million) to R913 million (US$115 million). The net
increase in working capital of R840 million (US$111 million) was
mainly due to the payment of creditors at Cerro Corona raised at June year end
and funding of working capital needs.
As expected, capital expenditure decreased from R2,525 million (US$327 million)
in the June quarter to R1,813 million (US$234 million) in the September
quarter. Cerro Corona accounted for 75 per cent of this decrease.
At the South African operations capital expenditure decreased from R913 million
(US$118 million) in the June quarter to R788 million (US$102 million) in the
September quarter. This decrease of R125 million was mainly as a result of the
cessation of the Driefontein 9 shaft project and expenditure on equipment for
mechanised development at South Deep incurred in the previous quarter.
Expenditure on ore reserve development at Driefontein, Kloof, and Beatrix
accounted for R76 million (US$10 million), R143 million (US$18 million), and
R92 million (US$12 million) respectively. Expenditure on the new mine
development at South Deep continued and amounted to R70 million.
At the international operations capital expenditure decreased from R1,605
million (US$209 million) to R1,014 million (US$131 million). This was mainly
due to reduced capital expenditure of R520 million (US$66 million) at Cerro
Corona as the project moves through commissioning into full production. In
Ghana, expenditure at Tarkwa increased by R33 million (US$3 million) mainly on
the CIL plant (US$5 million) and additions to the primary mining fleet (US$15
million), partially offset by lower expenditure on sundry mining and
metallurgical equipment (US$7 million). In Australia, capital expenditure
decreased by R89 million (A$12 million) due to the completion of the Belleisle
development and timing of on-mine development of R42 million
(A$6 million) at St Ives, and a decrease of R47 million (A$6 million) at Agnew
on accommodation costs at Leinster, which was paid for in the June quarter.
Capital expenditure at the Cerro Corona mine in Peru amounted to R168 million
(US$22 million) in the September quarter compared with R687 million (US$88
million) in the June quarter. Cumulative expenditure to date amounts to US$510
million and is estimated at between US$540 million to US$550 million at project
completion.
Purchase of investments in the September quarter amounted to R87 million (US$11
million) mainly for the acquisition of 2.6 million shares in Sino Gold Ltd.
required to take our total interest to 19.9 per cent. Purchase of investments
in the June quarter amounted to R708 million (US$97 million) and included the
acquisition of shares in Sino Gold Ltd, Conquest Mining Ltd and Orsu Metals
Corp. (formerly Lero Gold Company).
Net cash inflow from financing activities in the September quarter amounted to
R2,598 million (US$336 million). This included loans received in the September
quarter to fund capital expenditure at Cerro Corona and South Deep, tax
payments in South Africa and due to funding of short term working capital needs.
Repayments of South African rand loans amounted to R693 million (US$90 million).
Net cash inflow from financing activities in the June quarter amounted to R1,095
million (US$143 million). Loans received 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 June quarter, all of this
money having been raised from the minority shareholders in this project
following the capitalisation of cumulative shareholder loan funding from Gold
Fields into equity.
Net cash outflow for the quarter was R126 million (US$14 million) compared with
a net cash inflow of R19 million (US$6 million outflow) in the June quarter.
After accounting for a negative translation adjustment of R63 million (US$8
million), the cash balance at the end of September was R1,818 million (US$229
million). The cash balance at the end of June was R2,007 million (US$251
million).
Balance sheet (Investment and Net Debt)
Investments decreased from R5,704 million (US$713 million) at 30 June 2008 to
R4,861 million (US$613 million) at 30 September 2008. This decrease was due to
a mark to market loss on the Gold Fields share portfolio. These mark to market
losses have been accounted for under equity.
Net debt (long-term loans plus current portion of long-term loans less cash and
deposits) has increased from R4,991 million (US$824 million) at 30 June 2008 to
R7,756 million (US$978 million) at 30 September 2008. This increase in total
debt is as a result of borrowings incurred to fund capital expenditure at Cerro
Corona and South Deep, tax payments at the South African operations and a
funding of working capital needs mainly at Cerro Corona.
Detailed and operational review
South African operations
Cost and revenue optimisation initiatives
During financial 2008, the South African operations reviewed the suite of
projects under Project 500 and identified the following for implementation over
the next two to five years.
Project 1M
Project 1M is a productivity initiative that aims to stop the decline in face
advance and increase that advance by an extra metre by the end of financial
2010, through the following key improvement initiatives in:
- drilling and blasting practices,
- cleaning and sweeping practices,
- cycle mining and training
Project 2M
Project 2M is a technology initiative aimed at mechanising all flat-end
development at the long-life shafts by financial 2010. The aim of the project
is to improve safety, productivity and increase reserve flexibility. It targets
a mechanisation rate of 43 per cent of flat-end development in financial 2009,
reaching 100 per cent by 30 June 2010. During the quarter 25 per cent of
flat-end development was achieved with mechanised equipment and machinery.
Project 3M
Project 3M is a suite of projects focused on reducing energy and utilities
consumption, work place absenteeism and surface ("above-ground") costs which
includes cost savings initiatives and enhancing the procurement processes.
The energy and utilities projects, comprising power, diesel and the related
consumption of air and water, targets savings of R130 million by financial
2010, through a 10 per cent reduction in power consumption and a 20 per cent
reduction in diesel; R70 million in financial 2009 and R60 million in financial
2010. These savings are against the baseline consumption for the fiscal year
2008.
Reducing energy and utility consumption at the operations mitigates the
safety risk to employees of interruptible power supply, maintains integrity of
equipment and machinery and minimises the erosion of operating margins
arising from higher tariffs and oil prices.
Some of the key initiatives include on-line monitoring of power consumption,
improved main fan vane controls, energy efficient lighting and pumping,
replacement of compressed air drills with electric drills at long life shafts
and reducing air and water wastage through stope shut-off valves. In the case
of diesel, stricter controls have been enforced, supported by the continued
replacement of diesel locos with battery locos and upgrading of the old surface
vehicle fleet.
The savings from these projects during the quarter amounted to R36 million,
comprising R35 million on power and R1 million on diesel. The average power
consumed for the quarter was 4 per cent below the baseline. The average diesel
consumed was 3 per cent lower than the baseline.
The management of work place absences project ("Unavailables project") aims to
reduce the impact on lost production and costs arising from work place
absenteeism.
This project aims to reduce work place absenteeism by 4 per cent by 2010, from
12 per cent currently to 8 per cent, with a target of 2 per cent in each of
financial 2009 and 2010. This will be achieved through a series of aggressive
initiatives to reduce unnecessary time spent by employees in training,
induction and the engagement and health care assessment processes, through the
creation of the one-stop engagement and health assessment centre for the West
Wits operations. Stricter controls have been implemented to manage absenteeism
and the abuse of sick leave, whilst the wellness programmes, which aim at
promoting employee fitness and a healthy lifestyle, will continue. Improving
employee and union relations remains critical to reducing the impact of work
place absenteeism due to strikes or stay-ways.
Unavailables for the quarter were 2 per cent above the target largely due to
the impact of the COSATU stay-way, increased training at the operations in line
with the Group`s safety initiatives, coupled with the on-going productivity
team-training programmes.
The above-ground cost project aims to reduce above-ground costs by at least
R100 million per annum. Various initiatives are in place, including a review of
above-ground surface labour, improved workshop performance, more effective
salvage and reclamation programmes, enhancing the procurement processes and
more efficient management of stores through a vigorous application of standards
and norms. During the quarter R32 million cost savings were realised under this
project as follows:
Contracted capital and working cost benefits of R7 million were achieved from
rise-and-fall fuel price reductions, competitive bulk steel products and
professional services tenders, as well as delayed payment terms on loco drill
rigs, cable price reductions, improved quality on medium voltage motors repairs
and savings due to improved standards on multi-stage pumps.
R13 million cost avoidance benefits were negotiated on steel products,
explosives and accessories, blasting barricades, drilling systems, electric
cables, cementation and litigation settlement expenses. The capital portion of
the cost avoidance benefits was achieved mainly through steel forward orders
early in financial 2008 delivered during the September quarter.
In addition R12 million benefits were achieved through settlement discounts
and efficiency related savings in commercial services.
International operations
Integrated continuous improvement initiatives and strategic sourcing /
contracts benefits achieved
Due to the slowdown in global demand markets during the September quarter
international operations saw diesel related rise-and-fall claw-back benefits
which are expected to continue into the December quarter. A weaker Australian
exchange rate might potentially soften the diesel rise-and-fall savings claw-
back to some extent. Both Australia and Ghana has made good progress over the
last quarter through contractor mining joint optimisation initiatives.
Consolidated total cost contracted and realised benefits of around US$7 million
were achieved across the international operations for the quarter.
Continuous improvement benefits and value add highlights per region:
Australia
September quarter diesel rise-and-fall price reductions resulted in A$800
thousand savings in Australia. Around A$5 million additional contracted and
realised benefits were achieved through underground improvement
projects and power recovery costs at St Ives. Furthermore due to long term
strategic partnerships and aligned vendor focus, the Australian operations
managed to steer effectively through the Western Australian recovery and
stabilisation of the natural gas, power short-supply period without a material
impact to operations remained unaffected by the Western Australian power short-
supply period.
During the December quarter the underground project opportunity
assessment at St Ives will be completed and the remaining projects initiated to
improve key areas, such as maintenance and quality mining. The surface and
underground mining contracts both expire during financial 2009. Work is being
undertaken to identify improvements to each contract to determine if the
contracts should be rolled over.
Ghana
Diesel rise-and-fall price reductions in Ghana added around US$1.2 million
savings during the September quarter. At Damang, good progress was made in
identifying opportunities for total cost reduction through improved mining
sequences and logistics performance.
For the December quarter the key focus will be on contractor and cost reductions
at Damang, the commissioning of the new emulsion plant and a review of key
maintenance and repair contracts at Tarkwa
Peru
The September quarter commenced with the successful hand over of all mine
development project contract commitments and open orders. New teams and
capabilities were established for on-site management, outbound transport,
storage, loading and ship brokering of concentrate. A major milestone was
achieved when the first concentrate was produced, transported to the Salaverry
Port and shipped successfully. Concentrate logistics performance management
processes were implemented to ensure continuous risk and optimisation reviews.
During the December quarter added focus will be on reviewing explosives value
added services and diesel consolidation opportunities.
South African operations
Royalty bill
The Mineral and Petroleum Resources Royalty Bill was introduced into Parliament
by the Minister of Finance on 26 June 2008. National Treasury released an
Explanatory Memorandum relating to the Bill on 20 August 2008 for final comment
by 17 October 2008. The previous formula has been changed from EBITDA to EBIT
(with 100 per cent capital expenditure taken into account in the calculation of
EBIT). A cap of 5 per cent has also been introduced for refined minerals (gold
and platinum) with a surcharge add-on in the formula of 0.5 per cent. The Bill
comes into effect on 1 May 2009.
Driefontein
September June
2008 2008
Gold produced - kg 6,428 6,786
- 000`ozs 206.7 218.2
Yield - underground - g/t 8.1 8.2
- combined - g/t 4.2 4.4
Total cash costs - R/kg 130,149 103,537
- US$/oz 523 414
Notional cash expenditure - R/kg 169,306 153,905
- US$/oz 680 616
Gold production decreased by 5 per cent from 6,786 kilograms (218,200
ounces) in the June quarter to 6,428 kilograms (206,700 ounces) in the
September quarter in line with the previous guidance. The decrease in
production was directly attributable to the decision to address backlog
secondary support. Underground yield decreased from 8.2 grams per ton to
8.1 grams per ton for the quarter as a result of the backlog secondary support
programme, as higher grade areas at 4 shaft and 5 shaft were temporarily
unavailable. The labour build-up at 6 shaft is progressing to plan and the first
gold production is expected in the December quarter. Gold production from
10 shaft will continue on a cleaning and reclamation basis only, as no
physical mining will take place following the safety review of pillar mining.
Surface yield remained constant at 0.7 grams per ton. Underground tonnage
decreased from 760,000 tons in the June quarter to 724,000 tons in the
September quarter due to the backlog secondary support programme. The
reduction in underground tonnage was partially offset by an increase in
surface tonnage from 785,000 tons to 812,000 tons.
Main development decreased by 41 per cent for the quarter and on-reef
development decreased by 31 per cent, mainly as a result of the development
crews being utilised to assist with the backlog secondary support programme at
the high grade 1, 4 and 5 shafts. Most of the on-reef development for the
quarter was done in prospecting areas at the lower grade 8 shaft (due to the
unavailability 1, 4 and 5 shafts for on-reef development) which resulted in a
decrease of 35 per cent in the average development value to 833 cm.g/t.
Operating costs increased 19 per cent, from R742 million (US$95 million) to
R881 million (US$114 million). The increase in operating cost is attributable
to the annual wage increase, the 20 per cent electricity price increase and two
higher winter tariff months, the reduction in the capitalisation of off-reef
development costs due to lower off-reef development (because of the focus on
backlog secondary support) and the cost of the backlog secondary support. Total
cash costs increased 26 per cent, from R103,537 per kilogram to R130,149 per
kilogram and from US$414 per ounce to US$523 per ounce respectively.
Operating profit decreased from R785 million (US$103 million) in the June
quarter to R509 million (US$66 million) in the September quarter as a result of
the increase in operating costs, the decrease in production and the lower gold
price received.
Capital expenditure decreased from R303 million (US$39 million) to R207 million
(US$27 million), in line with the forecast. This decrease was mainly due to
decreased expenditure on the mothballed 9 shaft project (R67 million), ore
reserve development (R21 million) and a lower spending on new technology and
other sustaining projects (R8 million).
Notional cash expenditure increased from R153,905 per kilogram (US$616 per
ounce) to R169,306 per kilogram (US$680 per ounce) due to the increased
operating cost and decrease in gold output, partially offset by a decrease in
capital expenditure.
The forecast for the December quarter is as follows:
- Gold produced - 6,500 kilograms (209,000 ounces)
- Total cash costs* - R130,000 per kilogram (US$505 per ounce)
- Capital expenditure* - R250 million (US$31 million)
- Notional cash expenditure* - R174,000 per kilogram (US$675 per ounce)
* Based on an exchange rate of US$1 = R8.00.
Gold production is expected to be slightly higher than the previous quarter
mainly due to production areas becoming available for mining after the backlog
secondary support is installed and the build-up at 6 shaft to full production,
partially offset by the stoppage of mining activities due to the double
fatality which occurred on 15 October 2008. Total cash costs are expected to be
marginally lower. The increase in capital expenditure is due to increased
expenditure on the tailings uranium project, the water plant project, emergency
power generation, new technology projects and housing upgrades. The lower
expenditure on capitalised development costs due to the focus on secondary
support is expected to continue in the December quarter.
Kloof
September June
2008 2008
Gold produced - kg 4,871 5,577
- 000`ozs 156.6 179.3
Yield - underground - g/t 7.7 7.5
- combined - g/t 5.0 4.9
Total cash costs - R/kg 153,747 119,240
- US$/oz 618 477
Notional cash expenditure - R/kg 210,142 167,940
- US$/oz 844 672
Gold production decreased by 13 per cent from 5,577 kilograms (179,300 ounces)
in the June quarter to 4,871 kilograms (156,600 ounces) in the September
quarter. This is 25 per cent higher than the market guidance given for the
September quarter due to better logistical planning for movement of people,
material and ore in the remainder of the mine to accommodate the Main shaft
rehabilitation programme. The decrease in production compared with the previous
quarter was mainly due to the stoppage at Main shaft for repairs from the end
of July 2008. This is planned to be completed by the end of December 2008. The
fatal at 1 shaft, the one day protected labour stay-away organised by COSATU
and to a lesser extent a fire at 7 shaft also caused additional production
stoppages.
Underground tonnage decreased from 688,000 tons to 603,000 tons and surface
tons milled decreased from 455,000 tons to 368,000 tons. The benefit of
intensified underground sweeping and vamping initiatives realised a 3 per cent
higher underground grade from 7.5 grams per ton to 7.7 grams per ton and the
combined grade also benefited from lower surface volumes.
Total main development decreased by 13 per cent for the quarter while on- reef
development was similar to the previous quarter. The on-reef development value
was 17 per cent higher for this quarter. Off-reef development was lower as a
result of the logistical constraints due to the Main shaft rehabilitation
programme.
Operating costs increased by 13 per cent from R694 million (US$89 million) in
the June quarter to R785 million (US$101 million) in the September quarter.
September quarter costs include higher labour costs due to annual wage
increases, increased electricity cost as a result of the 20 per cent price
increase and two higher winter tariff months, increased commodity, steel and
fuel costs and lower off-reef development capitalised. As a consequence of the
higher costs and the lower gold output total cash cost increased 30 per cent
from R119,240 per kilogram to R153,747 per kilogram. In US dollar terms, total
cash costs increased from US$477 per ounce to US$618 per ounce.
Operating profit decreased from R558 million (US$72 million) to R274 million
(US$35 million) mainly due to the lower production, increased costs and the
lower gold price.
Capital expenditure at R238 million (US$31 million) decreased by 2 per cent
compared with the previous quarter`s expenditure of R242 million (US$28
million). The Main shaft rehabilitation programme is expected to cost R78
million (US$10 million).
Notional cash expenditure increased from R167,940 per kilogram to R210,142 per
kilogram due to the increase in costs and the lower gold production.
The forecast for the December quarter is as follows:
- Gold produced - 4,200 kilograms (135,000 ounces)
- Total cash costs* - R179,000 per kilograms (US$697 per ounce)
- Capital expenditure* - R270 million (US$34 million)
- Notional cash expenditure* - R251,000 per kilogram (US$976 per ounce)
* Based on an exchange rate of US$1 = R8.00.
Gold production for the December quarter is better than guidance provided at
half year and forecast to decrease by about 14 per cent compared with the
September quarter because of the full impact of the Main shaft repair programme
and to a lesser extent the disruption caused by the underground fire at 7 shaft.
The Main shaft repair programme started early in August resulting in only two
months of reduced production in the September quarter compared with a full
quarters production loss forecast for the December quarter. Total cash cost will
increase in the December quarter as a result of the lower gold production.
Capital expenditure is planned to increase to R270 million (US$34 million)
mainly due to the Main shaft repairs.
Beatrix
September June
2008 2008
Gold produced - kg 3,156 3,678
- 000`ozs 101.5 118.3
Yield - g/t 4.0 4.7
Total cash costs - R/kg 150,982 119,467
- US$/oz 607 478
Notional cash expenditure - R/kg 206,622 166,096
- US$/oz 830 665
Gold production at Beatrix decreased by 14 per cent from 3,678 kilograms
(118,300 ounces) in the June quarter to 3,156 kilograms (101,500 ounces) in the
September quarter. This is lower than the guidance due to the lower Mine Call
Factor (MCF) during the quarter. Tons milled increased from 778,000 tons to
790,000 tons and yield decreased from 4.7 grams per ton in the June quarter to
4.0 grams per ton for the September quarter due to a lower MCF.
During September month the mined volumes and MCF reverted to planned levels.
Development metres also showed a quarter on quarter reduction, with total main
development decreasing by 4 per cent to 9,260 metres and main on- reef
development at 1,620 metres, which is 339 metres or 17 per cent lower than the
previous quarter. Main development values were 2 per cent lower at 795 cmg/t as
a result of the majority of raises traversing lower grade areas in the short
term as anticipated by local geological models.
Operating costs quarter on quarter increased by 9 per cent, from R460 million
(US$59 million) to R499 million (US$65 million). The increase in costs was
mainly due to annual wage increases, increased material usage and higher
electricity costs arising from the 20 per cent price increase and the two
higher winter tariff months in the quarter. Total cash costs increased by 26
per cent from R119,467 per kilogram in the June quarter to R150,982 per
kilogram in the September quarter, mainly due to lower gold output and cost
increases. In US dollar terms total cash costs increased by 27 per cent from
US$478 per ounce to US$607 per ounce.
Beatrix posted an operating profit of R127 million (US$16 million) for the
quarter compared with R372 million (US$50 million) in the June quarter.
Capital expenditure was similar quarter on quarter at R154 million (US$20
million).
Notional cash expenditure increased from R166,096 per kilogram (US$665 per
ounce) to R206,622 per kilogram (US$830 per ounce).
The forecast for the December quarter is as follows:
Gold produced - 3,450 kilograms (111,000 ounces)
Total cash costs* - R141,000 per kilogram (US$547 per ounce)
Capital expenditure* - R165 million (US$21 million)
Notional cash expenditure* - R195,000 per kilogram (US$756 per ounce)
* Based on an exchange rate of US$1 = R8.00.
The decrease in total cash costs in the December quarter forecast is mainly as
a result of increased gold output.
International operations
Ghana
Tarkwa
September June
2008 2008
Gold produced - 000`ozs 156.3 168.6
Yield - heap leach - g/t 0.7 0.8
- CIL plant - g/t 1.6 1.6
- combined - g/t 0.9 1.0
Total cash costs - US$/oz 548 443
Notional cash expenditure - US$/oz 1,029 856
Gold production for the September quarter decreased by 7 per cent from 168,600
ounces to 156,300 ounces. The decrease in production was mainly due to a
decrease in yield as a result of a build-up of gold-in-process (GIP) in the
South heap leach pads. Tons processed were in line with the previous quarter at
5.5 million tons. Combined yield decreased from 1.0 gram per ton to 0.9 grams
per ton.
Total tons mined, excluding capital stripping, increased from 20.6 million tons
to 24.2 million tons due to an improvement in fleet efficiencies after the
radial tyre shortages experienced during the previous quarter was addressed.
Ore mined increased from 4.8 million tons to 5.5 million tons in the September
quarter. The achieved head grade reduced from 1.29 grams per ton to 1.21 grams
per ton. The overall strip ratio for the quarter was higher at 4.58 compared
with 4.37 in the June quarter.
Total feed to the heap leach sections increased from 4.07 million tons for the
June quarter to 4.15 million tons. Heap Leach yield for the quarter decreased
from 0.8 grams per ton for the June quarter to 0.7 grams per ton in the
September quarter, due to the GIP build-up in the South heap leach. As a result
the heap leach sections produced 88,000 ounces, 10 per cent lower than the
97,700 ounces produced in the June quarter. This gold build-up is expected to
be recovered as irrigation on the heaps returns to normal after stacking on
these heaps is completed towards the end of the calendar year. Effective
completion of stacking at the South heap leach will match the ramp-up of the CIL
expansion.
The total feed to the CIL plant was 1.35 million tons compared with 1.40
million tons in the June quarter. The lower feed was as a result of the CIL
expansion tie-in activities that impacted on plant availability. CIL yield was
1.6 grams per ton similar to the June quarter. The CIL plant produced 68,200
ounces in the September quarter compared with 70,900 ounces in the previous
quarter.
Operating costs, including gold-in-process movements, increased from US$76
million (R585 million) in the June quarter to US$86 million (R664 million) in
the September quarter. Over US$6 million of this increase was attributable to
Government increases in power tariffs effective from 1 July 2008. A reduction
in these power tariffs is being negotiated. The balance of the increase was
mainly due to fuel and explosives price increases.
Operating profit was 33 per cent lower at US$50 million (R388 million) compared
with US$75 million (R575 million) in the June quarter.
Capital expenditure increased from US$69 million (R523 million) to US$72
million (R556 million) for the quarter, with expenditure on the CIL expansion
(US$36 million), primary mining equipment (US$15 million) and pre-stripping at
the Teberebie cutback (US$13 million) being the major capital expenditures for
the quarter.
Notional cash expenditure for the quarter increased from US$856 per ounce to
US$1,029 per ounce and included the effect of the high capital expenditure on
the mill expansion, now nearing completion.
The forecast for the December quarter is as follows:
- Gold produced - 150,000 ounces
- Total cash costs - US$580 per ounce
- Capital expenditure - US$62 million
- Notional cash expenditure - US$995 per ounce
Gold production is expected to decrease in the December quarter compared with
the September quarter due to the integration of the new plant and completion of
the South heap leach facility. The CIL expansion commissioning is planned for
December. Unit cash costs are expected to increase due to the lower gold
production and the flow through of reduced fuel prices, based on lower world
oil prices which will only be realised towards the end of December.
Damang
September June
2008 2008
Gold produced - 000`ozs 44.0 50.0
Yield - g/t 1.2 1.5
Total cash costs - US$/oz 790 578
Notional cash expenditure - US$/oz 895 773
Gold production decreased 12 per cent from 50,000 ounces in the June quarter and
against guidance, to 44,000 ounces in the September quarter. This was mainly due
to the unavailability of the pebble crusher, resulting in additional feed of low
grade oxide material to balance the mill-feed blend, resulting in a decline in
yield from 1.5 grams per ton to 1.2 grams per ton. Although there were sets of
critical spares on site, these failed upon installation and the replacement
original equipment manufacturer (OEM) parts were only received in the latter
half of the quarter.
Total tons mined, including capital stripping, reduced by 5 per cent from 6.53
million tons in the June quarter to 6.22 million tons in the September quarter.
Ore mined also decreased from 1.24 million tons to 1.13 million tons. The strip
ratio increased from 4.29 in the June quarter to 4.51 in the September quarter.
The mill throughput for the quarter increased from 1.06 million tons achieved
in the June quarter to 1.14 million tons in the September quarter. This was due
to a softer blend feed to the plant during the rebuilding of the pebble
crusher. Despite this, the lower grade resulted in less gold produced.
Operating costs, including gold-in-process movements increased from US$29
million (R225 million) to US$35 million (R276 million). The increase in costs
was mainly attributable to a government imposed increase in power tariffs
effective from 1 July 2008, and increases in diesel and cyanide costs. Total
cash costs increased from US$578 per ounce to US$790 per ounce reflecting the
reduction in production and increase in costs.
Operating profit for the September quarter at US$3 million (R26 million) was 81
per cent lower than the US$16 million (R120 million) achieved in the June
quarter.
Capital expenditure at US$4 million (R30 million) was slightly lower than the
US$6 million (R45 million) spent in the June quarter, with the majority of this
expenditure on the Damang pit cutback, dewatering and plant pebble crusher
maintenance.
Notional cash expenditure for the quarter was US$895 per ounce compared with
the previous quarter`s US$773 per ounce mainly as a result of the increase in
power costs and the lower production.
The forecast for the December quarter is as follows:
Gold produced - 50,000 ounces
Total cash costs - US$630 per ounce
Capital expenditure - US$5 million
Notional cash expenditure - US$740 per ounce
Gold production is expected to increase in the December quarter compared with
the September quarter due to the return of hard rock feed as the pebble crusher
returns to production. Resulting yields should improve as a consequence of the
improved mill feed blend.
Australia
St Ives
September June
2008 2008
Gold produced - 000`ozs 101.2 101.5
Yield - heap leach - g/t 0.4 0.5
- milling - g/t 2.5 2.5
- combined - g/t 1.7 1.8
Total cash costs - A$/oz 786 702
- US$/oz 708 663
Notional cash expenditure - US$/oz 986 971
Gold produced remained steady at 101,200 ounces in the September quarter
compared with 101,500 ounces in the June quarter. This performance was
significantly below the guidance due to the slow ramp-up of Cave Rocks and poor
grade reconciliation from Argo underground. Improved output is expected from
Cave Rocks during the December quarter due to the completion of the ventilation
system. At Argo, a new mining method was implemented at the start of the
September quarter with a reduction in dilution in flat stopes expected by the
end of the December quarter.
Gold produced from the Lefroy mill decreased slightly from 92,600 ounces to
92,200 ounces due to mill blend. Tons milled and yield were virtually unchanged
at 1.17 million tons and 2.5 grams per ton respectively.
Gold produced from heap leach increased from 8,900 ounces in the June quarter
to 9,000 ounces in the September quarter. Tons treated from heap leach
increased from 567,000 tons to 646,000 tons and recoveries remained constant at
around 53 per cent. Yield decreased from 0.5 grams per ton to 0.4 grams per ton
due to an increase in the proportion of lower grade fresh ore mined from the
Leviathan pit cutback.
At the open pit operations 1.4 million tons of ore were mined for the quarter,
compared with 1.2 million tons of ore in the June quarter. The Cave Rocks and
Blue Lode open pits were completed. Grade decreased from 1.9 grams per ton to
1.7 grams per ton. The average strip ratio including capital waste was 4.7 in
the September quarter, compared with 5.8 in the June quarter.
At the underground operations 248,000 tons of ore were mined at 4.7 grams per
ton for the quarter, compared with 183,000 tons of ore mined at 5.2 grams per
ton for the June quarter. The increase in volume was mainly from the new
underground operations at Belleisle and Cave Rocks and from Argo, where the
paste fill delays reported in the prior quarter have been resolved.
Belleisle achieved full production levels during the September quarter.
Operating costs, including gold-in-process movements, increased from A$73
million (R527 million) in the June quarter to A$81 million (R565 million) in
the September quarter. This increase was mainly due to the first full quarter
application of the 4 per cent net smelter royalty of A$4 million which applies
to produced ounces and increased underground mining costs due to the 36 per cent
increased volumes from underground. Total cash costs increased from A$702 per
ounce (US$663 per ounce) to A$786 per ounce (US$708 per ounce).
Operating profit decreased from A$23 million (R173 million) to A$19 million
(R133 million) in line with the increased costs and the decrease in the
Australian gold price from A$990 per ounce to A$949 per ounce.
Capital expenditure decreased from A$36 million (R259 million) in the June
quarter to A$30 million (R212 million) in the September quarter. The majority
of this expenditure was spent on mine development (A$21 million - R141 million)
and included development activity at Cave Rocks, completion of infrastructure
development at Belleisle underground mine, the continuation of development at
Argo and waste stripping at the future Agamemnon South and Grinder pits.
Exploration expenditure at A$8 million (R54 million) includes an increased focus
on Athena.
Notional cash expenditure increased from A$1,029 per ounce (US$971 per ounce)
in the June quarter to A$1,095 per ounce (US$986 per ounce) in the September
quarter, mainly due to increased operating costs, partially offset by a
reduction in capital expenditure.
The forecast for the December quarter is as follows:
Gold produced - 110,000 ounces
Total cash costs* - A$740 per ounce (US$630 per ounce)
Capital expenditure* - A$28 million (US$24 million)
Notional cash expenditure* - A$990 per ounce (US$840 per ounce)
* Based on A$1 = US$0.85.
The gold production increase is in line with increased production forecast from
the new underground mines at Cave Rocks and Belleisle. Development of these new
underground mines will continue to remain a focus area to return production to
between 115,000 ounces and 120,000 ounces per quarter from the March quarter.
Total cash costs and notional cash expenditure are forecast to decrease as a
consequence. The mine is positioned to achieve these production levels in the
second half of financial 2009.
Agnew
September June
2008 2008
Gold produced - 000`ozs 52.2 54.6
Yield - g/t 5.3 5.0
Total cash costs - A$/oz 548 479
- US$/oz 494 452
Notional cash expenditure - US$/oz 588 662
Gold production decreased 4 per cent from 54,600 ounces in the June quarter to
52,200 ounces in the September quarter. A 9 per cent decrease in processing
volumes from 339,000 tons in the June quarter to 308,000 tons in the September
quarter, was partially offset by a 5 per cent increase in yield, from 5.0 gram
per ton to 5.3 gram per ton. The higher yield was due to an improved
performance from the Waroonga underground complex with increased overall
tonnages extracted from the complex. The lower processing volumes were the
result of a planned six day maintenance shutdown at the plant during July.
Ore mined from underground increased 5 per cent from 165,000 tons in the June
quarter to 173,000 tons in the September quarter. Underground mining achieved a
new quarterly production record with an average of almost 58,000 tons per
month, against the previous best of 55,000 tons per month in the previous
quarter.
Main Lode production was increased to replace the production from the completed
Songvang stockpiles. This resulted in a decrease of overall grade mined for the
quarter from 10.6 grams per ton to 8.1 grams per ton.
Operating costs, including gold-in-process movements, increased 7 per cent from
A$27million (R197 million) in the June quarter to A$29 million (R203 million)
in the September quarter. The increase in operating cost was mainly due to the
increase in ore mined at lower grade, and a release of gold-in- process stocks.
Total cash costs per ounce increased by 14 per cent from A$479 per ounce
(US$452 per ounce) in the June quarter to A$548 per ounce (US$494 per ounce) in
the September quarter.
Operating profit decreased from A$26 million (R179 million) for the June
quarter to A$23 million (R158 million) in the September quarter.
Capital expenditure decreased from A$13 million (R91 million) in the June
quarter to A$7 million (R49 million) for the September quarter. The higher
expenditure in the June quarter related to payments for single persons
accommodation at Leinster.
Notional cash expenditure decreased from A$702 per ounce (US$662 per ounce) in
the June quarter to A$653 per ounce (US$588 per ounce) in the September mainly
due to the decrease in capital expenditure.
The forecast for the December quarter is as follows:
- Gold produced - 46,000 ounces
- Total cash costs* - A$555 per ounce (US$470 per ounce)
- Capital expenditure* - A$14 million (US$12 million)
- Notional cash expenditure* - A$885 per ounce (US$750 per ounce)
* Based on A$1 = US$0.85.
Gold production for the December quarter is expected to reduce due to the
completion of the Songvang stockpiles. Notional cash expenditure per ounce is
expected to increase by 28 per cent with additional capital expenditure of A$3
million on upgrading catering facilities at Leinster as part of the new
accommodation agreement and focus on underground development at the Waroonga
complex.
Quarter ended 30 September 2008 compared
with quarter ended 30 September 2007
Group attributable gold production decreased by 19 per cent from 986,000 ounces
for the quarter ended September 2007 to 798,000 ounces produced in the
September 2008 quarter. These production results and the results below exclude
the results of Choco 10 sold during financial 2008, as these results are
accounted for under discontinued operations.
At the South African operations gold production decreased from 689,000 ounces
to 492,000 ounces. Driefontein`s gold production decreased from 260,000 ounces
to 207,000 ounces due to the stopping of 6 and 7 shafts following the Eskom
power rationing, the stoppage of 10 shaft due to increased seismicity, reduced
pillar mining for safety reasons, reduced surface grades and reduced mining due
to the focus on backlog secondary support during the September quarter.
Kloof`s gold production decreased from 235,000 ounces to 157,000 ounces due to
the Main Shaft rehabilitation, normalisation of underground yields at 7 shaft,
lower production at 3 shaft following the Eskom power rationing and reduced
pillar mining for safety reasons.
Beatrix`s gold production decreased from 119,000 ounces to 101,000 ounces due
to reduced mining volumes and a lower mine call factor.
South Deep`s gold production decreased from 74,000 ounces to 27,000 ounces due
to the termination of conventional VCR mining and the stoppage of the 95 2 West
and 3 West projects for rehabilitation of the main access ramps.
At the international operations total managed gold production increased from
355,000 ounces in September 2007 to 366,000 ounces in September 2008, including
12,400 equivalent ounces from Cerro Corona. In Ghana, Damang`s gold production
decreased 7 per cent to 44,000 ounces due to a decrease in mining grade as a
result of the failure of the pebble crusher during the quarter. Tarkwa was
marginally higher at 156,000 ounces mainly due to an increase of available
fresh ore tonnage mined and processed. In Australia, St Ives decreased
marginally to 101,000 ounces. The decrease at St Ives was due to a decrease in
head grade (2.04 grams per ton versus 2.12 grams per ton). Production at Agnew
increased by 2 per cent to 52,000 ounces due to an increase in high grade ore
mined from Waroonga underground, partially offset by lower grade from open pit
stock.
Revenue increased by 14 per cent in rand terms (increased 17 per cent in US
dollar terms) from R5,018 million (US$707 million) to R5,724 million (US$740
million). The 40 per cent higher average gold price of R217,586 per kilogram
(US$874 per ounce) compared with R155,333 per kilogram (US$816 per ounce)
achieved in the September 2007 quarter, more than offset the lower production.
The US dollar weakened from US$1 = R7.10 to US$1 = R7.74, or 9 per cent, while
the rand/Australian dollar weakened from A$1 = R6.02 to R6.97, or 16 per cent,
quarter on quarter.
Operating costs, including gold-in-process movements, increased from R3,302
million (US$465 million) to R4,150 million (US$536 million), an increase of
R848 million (US$71 million) or 26 per cent in rand terms. The increase in
costs was due to wage increases, above inflation price increases on fuel, steel
and cyanide at all the operations and increased power costs in Ghana and South
Africa. Total cash costs for the Group in rand terms, increased from R98,465
per kilogram (US$431 per ounce) to R153,458 per kilogram (US$617 per ounce) due
to the above factors.
At the South African operations operating costs increased by 17 per cent from
R2,114 million to R2,468 million for the year. This was due to the wage
increases and the increase in certain input costs such as steel, timber,
chemicals, food and power costs, partially offset by the cost saving
initiatives implemented over the year. Unit cash costs at the South African
operations increased from R94,248 per kilogram to R153,581 per kilogram (US$413
per ounce to US$617 per ounce) as a result of the above cost increases and the
lower production due to a decrease of 6 per cent in underground yield and the
rehabilitation programmes currently underway.
At the international operations, net operating cost increased from R1,188
million (US$167 million) in the June quarter to R1,682 million (US$217 million)
in the September quarter, of which R107 million (US$15 million) was as a result
of changes in the exchange rate. In Ghana, the increase in costs was mainly due
to the power increase effective from 1 July 2008 and the increase in diesel and
imported commodities such as cyanide and steel. Increased costs at St Ives were
due to increased production volumes, higher haulage costs at Cave Rocks and the
increased third party royalty charge. At Agnew, costs increased due to
increased underground mining and increased environmental costs. Unit cash costs
increased from US$468 per ounce to US$616 per ounce.
Operating profit decreased from R1,716 million (US$242 million) to R1,574
million (US$203 million). After accounting for taxation, sundry costs and
exceptional items, net earnings amounted to R39 million (US$5 million),
compared with R429 million (US$60 million) in the September 2007 quarter.
Earnings excluding gains and losses on foreign exchange, financial instruments,
exceptional items, loss of associates after taxation and discontinued
operations amounted to R120 million (US$16 million) this quarter compared with
R409 million (US$58 million) in September 2007.
Capital and development projects
South Deep project
September June
2008 2008
Gold produced - kg 849 1,167
- 000`ozs 27.3 37.5
Yield - underground - g/t 5.1 7.4
- combined - g/t 4.1 6.0
Total cash costs - R/kg 339,694 250,300
- US$/oz 1,365 1,002
Notional cash expenditure - R/kg 579,270 443,702
- US$/oz 2,328 1,776
Gold production at South Deep decreased by 27 per cent from 1,167 kilograms
(37,500 ounces) in the June quarter to 849 kilograms (27,300 ounces) in the
September quarter. This was lower than the guidance of 980 kilograms (31,500
ounces) due to the slower than expected return to operational stability after
completing labour restructuring at the mine. The decrease in gold production
was mainly due to the planned safety stoppage of all trackless mining
operations in the 95 2 West and 3 West areas due to the fact that the primary
support on the main access ramps required rehabilitation. The rehabilitation of
the two main access ramps was completed at the end of September 2008 and all
production machinery used to complete the rehabilitation of the ramps are now
back on production. The stoppage of production in the high grade 95 2 West and
3 West areas also had a negative impact on the yield during the quarter.
Development increased by 30 per cent for the September quarter from 989 metres
to 1,289 metres. Development above the 95 level increased from 750 metres to
1,220 metres for the September quarter.
Despite the annual wage increases, electricity price increases, the electricity
winter tariff rates and inflationary pressures, operating costs at R303 million
(US$39 million) were similar when compared with the June quarter`s cost of R302
million (US$39 million). This was mainly due to the labour restructuring
programme which commenced in August and was substantially completed by the end
of September 2008. This resulted in approximately 2,100 employees taking up the
voluntary separations packages offered during the restructuring process. There
were further cost reductions as a result of the lower production levels.
However, as a result of the decrease in gold production the total cash cost
increased by 36 per cent from R250,300 per kilogram (US$1,002 per ounce) in the
June quarter to R339,694 per kilogram (US$1,365 per ounce) in the September
quarter.
An operating loss of R119 million (US$15 million) was realised in the September
quarter compared with the June quarter`s operating loss of R39 million (US$6
million). The insurance claim for the fire damage and re- imbursement of
standing charges from the underground fire in August 2007 was finalised at a
net settlement of US$17 million (R132 million) at the end of the quarter.
Capital expenditure decreased to R189 million (US$24 million) in the September
quarter from R216 million (US$28 million) in the June quarter mainly due to
higher spending on the purchase of equipment for mechanised development in the
June quarter.
Notional cash expenditure increased by 31 per cent from R443,702 per kilogram
(US$1,776 per ounce) to R579,270 per kilogram (US$2,328 per ounce) due to
reduced gold production, partially offset by the decrease in capital
expenditure.
The forecast for the December quarter is as follows:
- Gold produced - 1,460 kilograms (46,900 ounces)
- Total cash costs* - R184,000 per kilogram (US$715 per ounce)
- Capital expenditure* - R235 million (US$29 million)
- Notional cash expenditure* - R353,000 per kilogram (US$1,370 per ounce)
* Based on an exchange rate of US$1 = R8.00.
With the completion of the restructuring process and the main access ramp
rehabilitation, South Deep will now focus on development of the ore body,
completion of the Twin shaft infrastructure and implementation of the
mechanised mining method for the de-stress cut in the massives mining project,
with a plan to increase production to approximately 1,500 kilograms per quarter
for the balance of the financial year, increasing thereafter.
Cerro Corona
September June
2008 2008
Gold produced - 000`oz 6.8 -
Copper produced - tons 750 -
Total gold produced - 000` eq oz 12.4 -
Yield - gold - g/t 0.5 -
- copper -% 0.17 -
- combined - g/t 0.9 -
Total cash cost - US$/ eq oz - -
Notional cash expenditure - US$/ eq oz 2,289 -
The first mine production of 12,400 equivalent ounces was recorded during the
September quarter. This is below market guidance of 42,000 gold equivalent
ounces. This was due to commissioning delays in the flotation section of the
process plant. Ore processed was 441,000 tons, with concentrate production at
6,100 tons. Gold yield for the quarter was 0.50 grams per ton and copper yield
was 0.17 per cent.
Total tons mined, excluding quarry material used for construction, increased
from 1.50 million tons in the June quarter to 1.89 million tons during the
September quarter. Ore mined increased from 0.76 million tons to 1.08 million
tons. The mined grade has improved from the June quarter due to increased tons
mined from the higher grade blocks of the pit. The overall strip ratio for the
September quarter was lower at 0.75 compared with 0.96 in the June quarter, as
lower volumes of waste were mined reflecting the delayed start-up of
operations.
First shipment of concentrate at Cerro Corona took place on 30 September made up
of 4,000 wet tons of concentrate with contained metal of 4,624 ounces of gold
and 415 tons of copper. As no sales have were recorded for the quarter, all
costs, including a portion of amortisation was carried in metal inventory. After
amortisation and sundry expense, the operation incurred a net loss of
US$3 million for the quarter. No cash costs have been reported.
Capital expenditure decreased from US$96 million (R744 million) in the June
quarter to US$24 million (R186 million) in the September quarter, with
expenditure on Cerro Corona construction project at US$11 million.
Commissioning activities were almost completed by quarter end and all remaining
commissioning items will be concluded during the December quarter. Cumulative
project commitments reached US$510 million, with the project forecast cost at
completion remaining at US$545 million. Other major capital expenditure for the
quarter was expenditure on the Las Aguilas TMF of US$3 million and ramp-up
expenditure of US$8 million.
Notional cash expenditure was recorded at US$2,289 per equivalent ounce and
included the effect of the mine not operating at commercial levels of
production yet.
The forecast for the December quarter is as follows:
- Metals (gold and copper) produced - 55,000 to 60,000 equivalent ounces*
- Gold produced - 28,700 ounces
- Copper produced - 5,200 tons
- Total cash costs - US$279 per ounce
Capital expenditure - US$64 million
Project expenditure - US$44 million
Sustaining expenditure - US$20 million
Notional cash expenditure - US$1,450 per ounce
* Equivalent ounces based on gold price of US$800 per ounce and copper US$5,000
per ton.
Increased metals production reflects the mine building up to designed volumes
which are expected to be achieved by the end of December or early in the March
quarter. The reduction in notional cash expenditure for the quarter is due to
higher equivalent ounces being produced during the quarter, partially off-set
by increased capital expenditure, mainly at the Las Aguilas TMF.
From the December quarter Cerro Corona will be included in the international
operations section.
Uranium project
This project is focused on exploring the economic potential of processing the
Gold Fields South African tailings dams for the recovery of uranium and the
related by-products.
This project is being managed in two phases, namely, the Driefontein tailings
opportunity and the historical tailings opportunity.
A pre-feasibility study was completed on the Driefontein tailings opportunity at
the end of 2007. The Driefontein current tailings processing opportunity is
estimated to be 77 million ton at 63 g/t uranium content producing 21 million
pounds of uranium.
The historical tailings opportunity is estimated to be 392 million tons at 74
g/t uranium content producing 28 million pounds of uranium and 2 million ounces
of gold.
A feasibility study on the Driefontein tailings opportunity and a pre-
feasibility study on the historical tailings opportunity has been initiated at a
cost of R160 million. It is expected that the feasibility study on the
Driefontein tailings opportunity will be completed by the end of February 2009.
The pre-feasibility study on the historical tailings opportunity will be
completed at the end of April 2009.
The drilling of the historical tailings facilities on the West Wits has been
accelerated in order to generate bulk sampling material for metallurgical
testing. A financial model has been developed to evaluate the different
treatment options and to determine the most suitable business model for this
project. Partners will be brought in where required.
Exploration and corporate development
Gold Fields continues to ramp up its international exploration programme with
thirty drill rigs active across eleven countries (Australia, Ghana, Peru, Mali,
Chile, DRC, Dominican Republic, China, USA, Indonesia and Kyrgyzstan), compared
with eighteen at the end of financial 2008. In addition, Gold Fields signed a
letter of intent to earn up to a 75 per cent interest in a joint venture with
Mindoro Resources Limited (TSX: "MIO.V") on a promising greenfields opportunity
in the Philippines. A total of 100,857 metres of drilling were completed during
the quarter with encouraging results being returned from several projects.
The Group has an increasing focus in the regions with an operational footprint;
Australasia, West Africa and South America. This supports the medium term
objective to build annual production to over one million ounces per annum from
each of these regions. The exploration group will rapidly test, turn over and
advance the existing robust portfolio of targets, while remaining opportunistic
for the acquisition of high quality advanced drilling targets in favorable
jurisdictions.
Greenfields exploration
At the Mt Carlton joint venture in northeast Queensland, Australia Gold Fields
is earning a 51 per cent stake in eight exploration tenements owned by Conquest
Mining Limited (ASX: "CQT"), surrounding Conquest`s Silver Hill discovery.
Exploration drilling completed includes two drill holes which tested the strong
IP/resistivity anomaly coincident with a zoned soil geochemical anomaly at the
Powerline Target (assay results are pending). At the Capsize Target, a
follow-up IP/resistivity survey has better defined drill targets surrounding
the alteration and mineralisation intersected in previous scout drilling. Four
holes have been planned to test an east-west trending chargeability high
located immediately north of the previously drilled scout holes which returned
anomalous results.
At the Clancy joint ventures in New South Wales, Australia where Gold Fields is
earning into an 80 per cent interest in three project areas from Clancy
Exploration Ltd (ASX: "CLY"), exploration included ground geophysical surveys
which defined anomalies consistent with porphyry Cu-Mo-Au mineralisation
analogous to Newcrest`s nearby Cadia and Ridgeway Mines. At the Eurowie Target,
the initial diamond drill hole intersected 566 metres of altered
pyrite-chalcopyrite bearing rocks. A second hole intersected
chalcopyrite-bearing quartz-carbonate veins and hydrothermal breccias within a
broad halo of pyrite and hematite (assays are pending). Two diamond drill holes
completed at the Keston and Purseglove Targets respectively cut intervals of
strong magnetite and hematite alteration with discrete zones of
quartz-sericite-pyrite alteration, followed by zones of quartz- carbonate
veining and disseminated pyrite (assays are pending).
At the 80 per cent owned Kisenge Project in the southern DRC, exploration
activities included definition of some twenty one priority targets based on
interpretation of the recently completed airborne geophysical survey. Four of
these targets (Mpokoto, Kajimba West, Muswinji and Kamata) are at the initial
drilling stage and the remainder are scheduled for systematic follow-up work.
Auger and RAB drilling has continued at the Mpokoto Target and soil sampling
was completed at Muswinji. Assay results from auger sampling at Kajimba Target
have extended the target some three kilometres to the east. RC drilling
will be carried out on these targets during the next quarter. Discussions
are ongoing with the DRC Government regarding their review of the MDDK
mining convention.
At the 51 per cent owned Sankarani joint venture with Glencar Mining plc (AIM:
"GEX") in south-western Mali, preparations are underway to resume field work as
soon as the rains subside in October 2008. The programme will advance six
target areas (Bada, Fie, FR14, BM East, Sindo, Selen 1) from target definition
to the initial drilling and complete initial drilling on four targets (Bokoro
Main West and East, Fingouana, Sanioumale West and East and Kabaya).
Gold Fields and Orsu Metals Corporation (TSX: "OSU" and AIM: "OSU") are
finalising a joint venture agreement on the Talas joint venture in Kyrgyzstan
which will grant Gold Fields the right to earn-in up to a 70 per cent interest.
An aggressive exploration programme is underway. Ongoing activities include
diamond drilling, road and drill platform construction, metallurgical testing,
soil and trench sampling and ground geophysical surveys (all assay results are
pending).
At the Redstar joint venture, Gold Fields is earning into a 60 per cent
interest in two of Redstar Gold Corp`s (TSX: "RGC.V") projects located in the
Carlin Trend; Nevada, USA. Drilling commenced in August 2008 on both the
Richmond Summit and Dry Gulch projects. Several holes have encountered
favorably altered lower plate host rocks locally cut by pyritised andesitic and
felsic dykes (most assays are still pending).
At the GoldQuest joint venture in the Dominican Republic, Gold Fields is
earning into an initial 60 per cent interest in a portfolio of GoldQuest Mining
Corp`s (TSX: "GQC:V") properties. Seven diamond drill holes were completed at
the Los Jengibres epithermal Au-Ag Target. Four of the holes intersected
silica+pyrite-sphalerite-chalcopyrite-barite vein, breccia and stockwork
mineralisation (assays are pending). Diamond drilling at the adjacent Loma
Viejo Project commenced in late September 2008. The 60 per cent earn-in
threshold is expected to be reached by December 2008.
Initial drilling of three holes was completed at the Sino Gold Alliance joint
venture Bengge project in southwestern China with Sino Gold Mining Ltd (ASX:
"SGX" and HKSE: "1862") with the fourth in progress. An encouraging
intersection was returned from hole SGB003 with 18 metres at 3.92 grams per ton
gold from 42 metres including 9 metres at 7.6 grams per ton gold.
Near Mine exploration
At St. Ives in Western Australia, drilling at the Athena Target focused on
resource conversion and extension. Results in hand are primarily from the high
grade core of the central shoot. These include some of the thickest and highest
grade results to date including 8 metres at 20 grams per ton gold from 400.5
metres and 10 metres at 14.9 grams per ton gold from 361.4 metres. Although very
encouraging exploration
results continue at Athena, conversion of the resource to reserves remains a
challenge due to high royalty and operating costs. Results for the diamond hole
drilled into the Yorrick conceptual target yielded an intersection of 12.85
metres at 2.48 grams per ton gold from 83.35 metres, including 1.8 metres at
6.53 grams per ton gold in the core of the structure.
At Greater Santa Ana results are continuing to return primarily from the Bahama
Pit and Bahama West drilling. Recent results from Santa Ana are of lower grade.
The focus on the open pit potential at Greater Santa Ana will see the deferral
of any further drilling into the down dip areas of the Santa Ana Shear. Recent
results, including 5 metres at 10.8 grams per ton gold from 25 metres, have
continued to demonstrate the presence of foot wall structure to Bahama to the
west of the pit. These come to surface under shallow cover. The continuation of
the Bahama structures and supergene mineralisation related to these has been
confirmed by recent results, including 5 metres at 8.6 grams per ton gold from
25 metres and 5 metres at 2.4 grams per ton gold.
Interesting results have also been returned from the Greater Revenge Area from
the N01 HW South target. The results, including 12 metres at 16.6 grams per ton
gold from 94 metres, 18 metres at 10.3 grams per ton gold from 85 metres and 7
metres at 3.1 grams per ton gold from 85 metres, are high grade, but fall in
the hanging wall and footwall of the targeted position in each hole.
Interpretation of these will need to be made in 3D once all results are
returned. Significant up-dip potential has yet to be tested in this location.
At Agnew in Western Australia, new geologic models were completed for the
Waroonga complex. Underground drilling continued on the 450S lode but moderate
to low grades were returned. Assay results from surface exploration were
returned from visible gold intersections at Cinderella with best intervals
including 4 metres at 5.8 grams per ton gold and 6 metres at 27.5 grams per ton
gold. Visible gold is being located in quartz veins in a number of new holes
currently being completed. Drilling has outlined a broad zone of alteration and
arsenopyrite mineralisation within which are zones of increased quartz veining
containing visible gold.
At Damang in Ghana, significant hydrothermal style mineralisation has been
intersected north of the Amoanda pit with the main part of the mineralisation
starting at 120 metres below surface. At the Abosso Underground Target, two
shallow holes with deflections were completed and intersected 20 centimetres to
50 centimetres thick conglomerate bands.
At Cerro Corona in Peru, district exploration continues under the Consolidada
de Hualgayoc 50:50 joint venture with Buenaventura (NYSE: "BVN"). An airborne
geophysical survey (magnetic and radiometrics) has been tendered and will be
flown early in the December quarter. At the Titan-Arabe Target, negotiations
are continuing with the local communities to gain drilling access to this
attractive Cu-Au anomaly. It is hoped that drilling can commence in the
December quarter.
Development projects
The Arctic Platinum Project in Finland was returned to Gold Fields on 1
September 2008 after North American Palladium (TSX: "NAP") let its option over
the project expire. Gold Fields is reassessing the project using new
information from NAP`s work and forecast metal prices. Gold Fields also plans
to complete further metallurgical test work during the December quarter and
will examine strategic options with respect to the project.
Corporate
Leadership changes at Gold Fields
On 30 July 2008 the Board announced that Terence Goodlace, Chief Operating
Officer and executive director of the company resigned with effect from 15
October 2008.
Terence`s position of Chief Operating Officer will be split into two roles,
with Vishnu Pillay, currently the Head of South African operations, continuing
in that role as Executive Vice president of the South African operations, and
Glenn Baldwin, currently Head of Australian and West African operations,
assuming the role of Executive Vice President for all international operations.
Both Vishnu and Glenn will report to Nick Holland and join the Group General
Executive Committee. The change in the reporting structure became effective on
1 October 2008.
Peter Turner, previously Vice President and Head of Operations at Driefontein
was appointed as Vice President and Head of West Africa as successor to Johan
Botha, who will be retiring at the end of 2008. Peter`s appointment was
effective from 1 October 2008.
To fill the position vacated by Peter, Koos Barnard, previously Senior Manager:
Operations at Driefontein was promoted to the position of Vice President and
Head of Operations of Driefontein Gold Mine with effect from 1 September 2008.
Dana Roets previously Vice President Technical Services at Corporate Office was
appointed as Vice President and Head of Operations at Kloof to replace Rodney
Hart who resigned during the quarter. Tim Rowland previously Senior Consultant:
Mineral Resources and Mine Planning was promoted to Vice President: Technical
Services, South Africa region to take over from Dana Roets.
Appointment of Directors
With effect from 1 August 2008 Gayle Margaret Wilson was appointed as an
independent Non-Executive Director and a member of the Audit Committee.
Gayle is a chartered accountant and has a wealth of experience in auditing the
mining industry. Previously, Gayle was a partner of Ernst & Young until her
retirement in June 2005. She was the lead engagement partner on Anglovaal
Mining Limited (now African Rainbow Minerals Limited) from 1997 to 2003. She
was also responsible for the audits of Northam Platinum Limited, Aquarius
Platinum Limited and was involved in the audit of Anglo Plats operations for
several years.
Gayle was involved in the audit of the AngloGold Group from its formation and
listing on the NYSE in 1998 and in 2001, this became her main focus when Ernst
& Young were appointed auditors to all their global operations and she took
over as the global lead engagement partner (now AngloGold Ashanti). Gayle is a
non-executive director of Witwatersrand Consolidated Gold Resources Limited
(Wits Gold).
With effect from 8 October Mr Richard (Rick) Peter Menell, was appointed as an
independent Non-Executive Director of Gold Fields.
Rick is a director on various companies. Previously, he was the President and
Member of the Chamber of Mines of South Africa, President and Chief Executive
Officer of TEAL Exploration & Mining Inc and Executive Chairman of Anglovaal
Mining Limited and Avgold Limited. He holds a B.A. (Hons) and M.A. (Natural
Sciences, Geology) from Trinity College, Cambridge, UK and a M.Sc. (Mineral
Exploration and Management) from Stanford University, California, USA.
Summons from Randgold and exploration
On 22 August 2008 Gold Fields announced that it received a summons from
Randgold and Exploration Company Limited ("Randgold") and African Strategic
Investment (Holdings) Limited, claiming that during the period that Western
Areas Limited ("WAL") was under the control of Brett Kebble, Roger Kebble and
others, WAL was allegedly part of a scam whereby JCI Limited unlawfully
disposed of shares owned by Randgold in Randgold Resources Limited
("Resources") and Afrikander Lease Limited, now Uranium One.
WAL`s preliminary assessment is that it has strong defenses to these claims and
accordingly, WAL`s attorneys have been instructed to vigorously defend the
claims.
It should be noted that the claims lie only against WAL, whose only interest is
a 50 per cent stake in the South Deep Mine. This alleged liability is historic
and relates to a period of time prior to Gold Fields purchasing the company.
Outlook
In the December quarter attributable gold production is forecast to increase by
around 5 per cent to 840,000 ounces. Notional cash expenditure (NCE) is forecast
to decrease from US$909 per ounce in the September quarter to US$890 per ounce
in the December quarter total cash costs are forecast to reduce from US$617 per
ounce to US$580 per ounce at an exchange rate of US$1 = R8.00.
At the current exchange rate of around US$1 = R11.00, NCE and total cash costs
would decrease to US$740 per ounce and US$460 per ounce respectively.
At the South African operations gold production is forecast to increase by 2
per cent mainly due to increased production from Beatrix and South Deep,
partially offset by lower production at Kloof. Total cash costs and NCE are
forecast at US$590 per ounce and US$850 per ounce respectively. At the
international operations production is forecast to increase by 11 per cent
mainly due to a full quarter`s production from Cerro Corona, although this mine
is still in a build-up phase. Total cash costs and NCE are forecast at US$550
per ounce and US$960 per ounce respectively. The above is based on an exchange
rate of US$1 = R8.00.
It is anticipated that production will be at around an annualised 4 million
attributable ounces during the March 2009 quarter. South Africa will contribute
approximately 2.34 million ounces once the Kloof Main shaft rehabilitation is
completed, with the balance coming from the international operations. Ghana
will contribute 0.70 million attributable ounces, Australia 0.65 million ounces
and Cerro Corona approximately 0.31 million attributable equivalent ounces.
Group NCE is forecast at US$725 per ounce at an exchange rate of US$1 = R8.00
and US$600 per ounce at US$1 = R11.00.
Basis of accounting
The unaudited results for the quarter have been prepared on the International
Financial Reporting Standards (IFRS) basis. The detailed financial, operational
and development results for the September 2008 quarter are submitted in this
report.
These consolidated quarterly statements are prepared in accordance with IAS 34,
Interim Financial Reporting. The accounting policies used in the preparation of
this report are consistent with those applied in the previous financial year
except for the adoption of applicable revised and/or new standards issued by
the International Accounting Standards Board.
N.J. Holland
Chief Executive Officer
29 October 2008
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND Quarter
September June September
2008 2008 2007
Revenue 5,723.6 6,452.4 5,018.2
Operating costs, net 4,149.7 3,731.1 3,301.9
- Operating costs 4,233.2 3,747.5 3,291.9
- Gold inventory change (83.5) (16.4) 10.0
Operating profit 1,573.9 2,721.3 1,716.3
Amortisation and depreciation 901.5 777.9 771.1
Net operating profit 672.4 1,943.4 945.2
Net interest paid (111.5) (14.7) (93.7)
Share of loss of associates after
taxation (104.2) (31.7) (1.4)
Loss on foreign exchange (6.1) (7.4) (12.3)
(Loss)/gain on financial instruments (55.8) 1.9 8.9
Other (114.9) (75.8) (11.3)
Exploration (67.7) (107.0) (84.6)
Profit before tax and exceptional items 212.2 1,708.7 750.8
Exceptional gain/(loss) 114.4 (94.8) 29.3
Profit before taxation 326.6 1,613.9 780.1
Mining and income taxation 256.9 663.7 289.1
- Normal taxation 203.5 555.4 223.8
- Deferred taxation 53.4 108.3 65.3
Net profit from continued operations 69.7 950.2 491.0
Loss from discontinued operations - - (8.2)
Profit adjustment on sale of Venezuelan
assets - - -
Net profit 69.7 950.2 482.8
Attributable to:
- Ordinary shareholders 39.2 842.9 428.6
- Minority shareholders 30.5 107.3 54.2
Exceptional items:
(Loss)/profit on sale of investments (0.9) 1.5 -
Profit/(loss) on sale of assets 1.9 (0.8) 29.3
South Deep restructuring (18.8) (65.2) -
Insurance claim - South Deep 132.2 - -
Driefontein 9 shaft closure costs - 20.8 -
Impairment of assets - (51.2) -
Other - 0.1 -
Total exceptional items 114.4 (94.8) 29.3
Taxation (46.1) 31.0 (11.2)
Net exceptional items after tax and
minorities 68.3 (63.8) 18.1
Net earnings 39.2 842.9 428.6
Net earnings per share (cents) 6 129 66
Diluted earnings per share (cents) 6 120 62
Headline earnings 38.9 880.6 410.5
Headline earnings per share (cents) 6 135 63
Net earnings excluding gains and losses
on foreign exchange, financial
instruments, exceptional items, share
of loss of associates after taxation and
discontinued operations 120.3 942.8 409.1
Net earnings per share excluding gains
and losses on foreign exchange,
financial instruments, exceptional
items, share of loss of associates after
taxation and discontinued operations (cents) 18 144 63
Gold sold - managed kg 26,305 28,861 32,306
Gold price received R/kg 217,586 223,568 155,333
Total cash costs R/kg 153,461 125,359 98,465
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
UNITED STATES DOLLARS Quarter
September June September
2008 2008 2007
Revenue 739.5 836.3 706.8
Operating costs, net 536.1 481.6 465.1
- Operating costs 546.9 484.1 463.7
- Gold inventory change (10.8) (2.5) 1.4
Operating profit 203.4 354.7 241.7
Amortisation and depreciation 116.5 100.1 108.6
Net operating profit 86.9 254.6 133.1
Net interest paid (14.4) (1.7) (13.2)
Share of loss of associates after
taxation (13.5) (3.8) (0.2)
Loss on foreign exchange (0.8) (1.1) (1.7)
(Loss)/gain on financial instruments (7.2) - 1.3
Other (14.8) (10.2) (1.6)
Exploration (8.7) (14.0) (11.9)
Profit before tax and exceptional items 27.5 223.8 105.8
Exceptional gain/(loss) 14.8 (17.4) 4.1
Profit before taxation 42.3 206.4 109.9
Mining and income taxation 33.2 87.4 40.7
- Normal taxation 26.3 73.8 31.5
- Deferred taxation 6.9 13.6 9.2
Net profit from continued operations 9.1 119.0 69.2
Loss from discontinued operations - (0.1) (1.2)
Profit adjustment on sale of Venezuelan
assets - (0.2) -
Net profit 9.1 118.7 68.0
Attributable to:
- Ordinary shareholders 5.2 104.7 60.4
- Minority shareholders 3.9 14.0 7.6
Exceptional items:
(Loss)/profit on sale of investments (0.1) (4.2) -
Profit/(loss) on sale of assets 0.2 (0.2) 4.1
South Deep restructuring (2.4) (9.0) -
Insurance claim - South Deep 17.1 - -
Driefontein 9 shaft closure costs - 3.0 -
Impairment of assets - (7.0) -
Other - - -
Total exceptional items 14.8 (17.4) 4.1
Taxation (6.0) 4.3 (1.6)
Net exceptional items after tax and
minorities 8.8 (13.1) 2.5
Net earnings 5.2 104.7 60.4
Net earnings per share (cents) 1 16 9
Diluted earnings per share (cents) 1 16 9
Headline earnings 5.0 111.1 57.9
Headline earnings per share (cents) 1 17 9
Net earnings excluding gains and losses
on foreign exchange, financial
instruments, exceptional items, share of
loss of associates after taxation and
discontinued operations 15.6 122.9 57.6
Net earnings per share excluding gains
and losses on foreign exchange,
financial instruments, exceptional
items, share of loss of associates
after taxation and discontinued
operations (cents) 2 19 9
South African rand/United States dollar
conversion rate 7.74 7.77 7.10
South African rand/Australian dollar
conversion rate 6.97 7.33 6.02
Gold sold - managed ozs (000) 846 928 1,039
Gold price received $/oz 874 895 680
Total cash costs $/oz 617 502 431
Balance sheet
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
September June
2008 2008
Property, plant and equipment 45,715.7 45,533.3
Goodwill 4,458.9 4,458.9
Non-current assets 768.3 746.7
Investments 4,860.8 5,704.2
Discontinued operations - -
Current assets 6,655.5 6,450.5
- Other current assets 4,837.4 4,443.2
- Cash and deposits 1,818.1 2,007.3
Total assets 62,459.2 62,893.6
Shareholders` equity 41,218.1 42,561.2
Deferred taxation 5,384.5 5,421.9
Long-term loans 9,081.8 6,513.9
Environmental rehabilitation provisions 1,980.1 2,015.5
Post-retirement health care provisions 20.9 21.0
Current liabilities 4,773.8 6,360.1
- Other current liabilities 4,281.9 5,875.9
- Current portion of long-term loans 491.9 484.2
Total equity and liabilities 62,459.2 62,893.6
South African rand/US dollar conversion rate
South African rand/Australian dollar conversion rate
UNITED STATES DOLLARS
September June
2008 2008
Property, plant and equipment 5,764.9 5,691.7
Goodwill 562.3 557.4
Non-current assets 96.9 93.3
Investments 613.0 713.0
Discontinued operations - -
Current assets 839.3 806.3
- Other current assets 610.0 555.4
- Cash and deposits 229.3 250.9
Total assets 7,876.4 7,861.7
Shareholders` equity 5,197.7 5,320.1
Deferred taxation 679.0 677.7
Long-term loans 1,145.2 814.2
Environmental rehabilitation provisions 249.7 251.9
Post-retirement health care provisions 2.6 2.6
Current liabilities 602.2 795.2
- Other current liabilities 540.2 734.7
- Current portion of long-term loans 62.0 60.5
Total equity and liabilities 7,876.4 7,861.7
South African rand/US dollar conversion rate 7.93 8.00
South African rand/Australian dollar conversion rate 6.72 7.66
Condensed changes in equity
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
September September
2008 2007
Balance at the beginning of the financial year 42,561.2 37,106.3
Issue of share capital - 0.1
Increase in share premium 2.7 8.5
Marked to market valuation of listed investments (883.2) 217.3
Dividends paid (784.5) (619.8)
Increase in share-based payment reserve 93.9 22.4
Profit attributable to ordinary shareholders 39.2 428.6
Profit attributable to minority shareholders 30.5 54.2
Increase in minority interest 733.1 -
Currency translation adjustment and other (651.2) (181.1)
Share of equity investee`s other equity movements 76.4 -
Balance as at the end of September 41,218.1 37,036.5
UNITED STATES DOLLARS
September September
2008 2007
Balance at the beginning of the financial year 5,320.1 5,189.7
Issue of share capital - -
Increase in share premium 0.3 1.2
Marked to market valuation of listed investments (114.1) 30.6
Dividends paid (101.9) (87.3)
Increase in share-based payment reserve 12.1 3.2
Profit attributable to ordinary shareholders 5.2 60.3
Profit attributable to minority shareholders 3.9 7.6
Increase in minority interest 96.0 -
Currency translation adjustment and other (33.5) 85.5
Share of equity investee`s other equity movements 9.6 -
Balance as at the end of September 5,197.7 5,290.8
Reconciliation of headline earnings with net earnings
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
September June
2008 2008
Net earnings 39.2 842.9
Profit/(loss) on sale of investments 0.9 (1.5)
Taxation effect on sale of investments - 2.2
(Loss)/profit on sale of assets (1.9) 0.8
Taxation effect on sale of assets 0.7 0.4
Impairment of assets - 51.2
Taxation effect on impairment of assets - (15.4)
Headline earnings 38.9 880.6
Headline earnings per share - cents 6 135
Based on headline earnings as given above divided by
653,241,161 for Sept 2008 (June 2008 - 653,156,884 and
September 2007 - 652,219,625) being the weighted
average number of ordinary shares in issue.
UNITED STATES DOLLARS
September June
2008 2008
Net earnings 5.2 104.7
Profit/(loss) on sale of investments 0.1 0.8
Taxation effect on sale of investments (0.1) 0.3
(Loss)/profit on sale of assets (0.2) 0.2
Taxation effect on sale of assets - 0.1
Impairment of assets - 7.0
Taxation effect on impairment of assets - (2.0)
Headline earnings 5.0 111.1
Headline earnings per share - cents 1 17
Based on headline earnings as given above divided by
653,241,161 for Sept 2008 (June 2008 - 653,156,884 and
September 2007 - 652,219,625) 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
September June September
2008 2008 2007
Cash flows from operating activities (31.7) 2,567.9 985.3
Profit before tax and exceptional items 212.2 1,708.7 750.8
Exceptional items 114.4 (94.8) 29.3
Amortisation and depreciation 901.5 777.9 771.1
Change in working capital (577.0) 262.5 (223.8)
Taxation paid (912.6) (194.6) (361.1)
Other non-cash items 229.8 108.2 12.7
Discontinued operations - - 6.3
Dividends paid (784.5) (424.9) (619.9)
Ordinary shareholders (784.5) (424.9) (619.9)
Cash flows from investing activities (1,907.9) (3,219.5) (1,932.8)
Capital expenditure - additions (1,812.8) (2,524.8) (1,927.9)
Capital expenditure - proceeds on
disposal 2.2 6.5 30.8
Purchase of subsidiaries - - -
Purchase of investments (86.8) (707.5) (2.4)
Proceeds on the disposal of investments - 65.4 -
Environmental and post-retirement
health care payments (10.5) (59.1) (4.9)
Discontinued operations - - (28.4)
Cash flows from financing activities 2,597.7 1,095.1 744.2
Loans received 3,287.9 1,164.6 908.6
Loans repaid (692.9) (850.0) (173.0)
Rights offer - Cerro Corona - 768.0 -
Shares issued 2.7 12.5 8.6
Net cash inflow/(outflow) (126.4) 18.6 (823.2)
Translation adjustment (62.8) 44.6 (17.0)
Cash at beginning of period 2,007.3 1,944.1 2,310.1
Cash at end of period 1,818.1 2,007.3 1,469.9
UNITED STATES DOLLARS Quarter
September June September
2008 2008 2007
Cash flows from operating activities (0.7) 334.0 131.1
Profit before tax and exceptional items 27.5 223.8 105.8
Exceptional items 14.8 (17.4) 4.1
Amortisation and depreciation 116.5 100.1 108.6
Change in working capital (74.5) 36.1 (31.5)
Taxation paid (114.7) (27.7) (58.6)
Other non-cash items 29.7 19.5 1.8
Discontinued operations - (0.4) 0.9
Dividends paid (101.9) (53.9) (88.6)
Ordinary shareholders (101.9) (53.9) (88.6)
Cash flows from investing activities (246.5) (429.0) (272.2)
Capital expenditure - additions (234.2) (327.2) (271.5)
Capital expenditure - proceeds on disposal 0.3 0.8 4.3
Purchase of subsidiaries - (3.3) -
Purchase of investments (11.2) (96.5) (0.3)
Proceeds on the disposal of investments - 8.9 -
Environmental and post-retirement
health care payments (1.4) (8.1) (0.7)
Discontinued operations - (3.6) (4.0)
Cash flows from financing activities 335.6 142.7 104.8
Loans received 424.8 150.4 128.0
Loans repaid (89.5) (105.2) (24.4)
Rights issue - Cerro Corona - 96.0 -
Shares issued 0.3 1.5 1.2
Net cash outflow (13.5) (6.2) (124.9)
Translation adjustment (8.1) 14.4 11.8
Cash at beginning of period 250.9 242.7 323.1
Cash at end of period 229.3 250.9 210.0
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 September 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.
Since the financial year end, the US$318.0 million was extended as follows:
- on 7 July, extended to 7 August 2008 at a rate of R7.9205, based on a spot of
R7.8555.
- on 7 August, extended to 8 September 2008 at a rate of R7.3817, based on a
spot of R7.3192.
- on 8 September, extended to 8 October 2008 at a rate of R7.9091, based on a
spot of R7.8476.
At the end of Sept 2008 the mark to market value of the US$318.0 million
forward cover was positive by R14.2 million (US$1.8 million). The quarter on
quarter marked to market movement was negative R81.9 million of which R22.2
million was offset against the R22.2 million foreign exchange gain on the
revaluation of the underlying loan being hedged. The balance of R59.7 million
represents the forward cover cost which for accounting purposes, as this
forward cover has been designated as a hedging instrument, is accounted for as
part of interest.
Ghana
In August 2008, the following forward cover was taken in the name of Gold
Fields Ghana Ltd to cover exposure on capital projects:
- in total AUD 9.3 million for various dates, based on a spot of AUD0.8693,
with maturity dates end of October 2008, November 2008, December 2008 and
January 2009.
- in total EUR 8.4 million for various dates, based on a spot EUR1.4799, with
maturity date end of October 2008.
- in total Rand 36.1 million for various dates, based on a spot R7.6450, with
maturity dates end of October 2008, November 2008, December 2008, January 2009
and February 2009.
The mark to market value for these positions at quarter end was negative by
US$0.4 million.
Diesel Hedge
Ghana
Gold Fields Ghana Holdings (BVI) Ltd purchased the following 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.
- in respect of a 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$1.11
per litre. A premium of US$3.3 million was paid.
- in respect of a total of 10 million litres of diesel exposure (5 million
litres per month) for the period 1 July 2009 - 31 August 2009 at a strike price
of US$0.98 per litre. A premium of US$1.0 million was paid.
- in respect of a total of 36 million litres of diesel exposure (6 million
litres per month) for the period 1 September 2009 - 28 February 2010 at a
strike price of US$0.90 per litre. A premium of US$3.6 million was paid.
The mark to market value for the call options purchased was positive by US$5.6
million at quarter end, compared with a premium paid of US$10.4 million.
Australia
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.
Further Asian Style Singapore 0.5 Gasoil call options were purchased in respect
of a total of 17.5 million litres of diesel exposure (2.5 million litres per
month) for the period 1 August 2009 - 28 February 2010 at a strike price of
US$0.9128 per litre. A premium of US$1.6 million was paid.
The mark to market value for the call options purchased was positive by US$2.2
million at quarter end, compared with a premium paid of US$4.4 million.
Total cash costs
Gold Industry Standards Basis
Figures are in millions unless otherwise stated
South African Operations
Total Mine
Operations Total
Operating costs(1) Sept 2008 4,233.2 2,467.7
June 2008 3,747.5 2,197.1
Gold-in-process and Sept 2008 (63.3) -
inventory change* June 2008 (25.5) -
Less: Sept 2008 23.1 18.8
Rehabilitation costs June 2008 15.2 10.6
Production taxes Sept 2008 7.6 7.6
June 2008 (29.1) (29.1)
General and admin Sept 2008 163.0 98.5
June 2008 158.2 87.4
Exploration costs Sept 2008 13.7 -
June 2008 1.6 -
Cash operating costs Sept 2008 3,962.5 2,342.8
June 2008 3,576.1 2,128.2
Plus: Sept 2008 7.6 7.6
Production taxes June 2008 (29.1) (29.1)
Royalties Sept 2008 66.7 -
June 2008 71.0 -
TOTAL CASH COSTS(2) Sept 2008 4,036.8 2,350.4
June 2008 3,618.0 2,099.1
Plus: Sept 2008 832.8 462.4
Amortisation* June 2008 750.9 389.5
Rehabilitation Sept 2008 23.1 18.8
June 2008 15.2 10.6
TOTAL PRODUCTION COSTS(3) Sept 2008 4,892.7 2,831.6
June 2008 4,384.1 2,499.2
Sept 2008 845.7 492.0
Gold sold - thousand ounces
June 2008 927.9 553.2
TOTAL CASH COSTS - US$/oz Sept 2008 617 617
June 2008 502 488
TOTAL CASH COSTS - R/kg Sept 2008 153,461 153,581
June 2008 125,359 121,984
TOTAL PRODUCTION COSTS Sept 2008 747 744
- US$/oz June 2008 608 581
Driefontein Kloof
Operating costs(1) Sept 2008 880.6 785.4
June 2008 741.5 694.2
Gold-in-process and Sept 2008 - -
inventory change* June 2008 - -
Less: Sept 2008 7.0 6.8
Rehabilitation costs June 2008 4.4 3.2
Production taxes Sept 2008 2.1 3.0
June 2008 (16.2) (11.3)
General and admin Sept 2008 37.0 29.7
June 2008 34.5 26.0
Exploration costs Sept 2008 - -
June 2008 - -
Cash operating costs Sept 2008 834.5 745.9
June 2008 718.8 676.3
Plus: Sept 2008 2.1 3.0
Production taxes June 2008 (16.2) (11.3)
Royalties Sept 2008 - -
June 2008 - -
TOTAL CASH COSTS(2) Sept 2008 836.6 748.9
June 2008 702.6 665.0
Plus: Sept 2008 139.6 174.8
Amortisation* June 2008 144.4 144.5
Rehabilitation Sept 2008 7.0 6.8
June 2008 4.4 3.2
TOTAL PRODUCTION COSTS(3) Sept 2008 983.2 930.5
June 2008 851.4 812.7
Sept 2008 206.7 156.6
Gold sold - thousand ounces
June 2008 218.2 179.3
TOTAL CASH COSTS - US$/oz Sept 2008 523 618
June 2008 414 477
TOTAL CASH COSTS - R/kg Sept 2008 130,149 1 53,747
June 2008 103,537 11 9,240
TOTAL PRODUCTION COSTS Sept 2008 615 768
- US$/oz June 2008 502 583
Beatrix South
Deep
Operating costs(1) Sept 2008 498.6 303.1
June 2008 459.6 301.8
Gold-in-process and Sept 2008 - -
inventory change* June 2008 - -
Less: Sept 2008 3.3 1.7
Rehabilitation costs June 2008 2.3 0.7
Production taxes Sept 2008 1.4 1.1
June 2008 (2.8) 1.2
General and admin Sept 2008 18.8 13.0
June 2008 17.9 9.0
Exploration costs Sept 2008 - -
June 2008 - -
Cash operating costs Sept 2008 475.1 287.3
June 2008 442.2 290.9
Plus: Sept 2008 1.4 1.1
Production taxes June 2008 (2.8) 1.2
Royalties Sept 2008 - -
June 2008 - -
TOTAL CASH COSTS(2) Sept 2008 476.5 288.4
June 2008 439.4 292.1
Plus: Sept 2008 98.9 49.1
Amortisation* June 2008 89.7 10.9
Rehabilitation Sept 2008 3.3 1.7
June 2008 2.3 0.7
TOTAL PRODUCTION COSTS(3) Sept 2008 578.7 339.2
June 2008 531.4 303.7
Sept 2008 101.5 27.3
Gold sold - thousand ounces
June 2008 118.3 37.5
TOTAL CASH COSTS - US$/oz Sept 2008 607 1,365
June 2008 478 1,002
TOTAL CASH COSTS - R/kg Sept 2008 150,982 339,694
June 2008 119,467 250,300
TOTAL PRODUCTION COSTS Sept 2008 737 1,606
- US$/oz June 2008 578 1,042
International Operations
Total
Operating costs(1) Sept 2008 1,765.5
June 2008 1,550.4
Gold-in-process and Sept 2008 (63.3)
inventory change* June 2008 (25.5)
Less: Sept 2008 4.3
Rehabilitation costs June 2008 4.6
Production taxes Sept 2008 -
June 2008 -
General and admin Sept 2008 64.5
June 2008 70.8
Exploration costs Sept 2008 13.7
June 2008 1.6
Cash operating costs Sept 2008 1,619.7
June 2008 1,447.9
Plus: Sept 2008 -
Production taxes June 2008 -
Royalties Sept 2008 66.7
June 2008 71.0
TOTAL CASH COSTS(2) Sept 2008 1,686.4
June 2008 1,518.9
Plus: Sept 2008 370.4
Amortisation* June 2008 361.4
Rehabilitation Sept 2008 4.3
June 2008 4.6
TOTAL PRODUCTION COSTS(3) Sept 2008 2,061.1
June 2008 1,884.9
Sept 2008 353.7
Gold sold - thousand ounces
June 2008 374.7
TOTAL CASH COSTS - US$/oz Sept 2008 616
June 2008 522
TOTAL CASH COSTS - R/kg Sept 2008 153,295
June 2008 130,344
TOTAL PRODUCTION COSTS Sept 2008 753
- US$/oz June 2008 647
Peru
Ghana Cerro
Tarkwa Damang Corona
Operating costs(1) Sept 2008 688.7 274.8 52.7
June 2008 598.4 255.4 -
Gold-in-process and Sept 2008 (18.8) (4.9) (52.7)
inventory change* June 2008 (12.7) (30.0) -
Less: Sept 2008 1.5 - -
Rehabilitation costs June 2008 1.2 - -
Production taxes Sept 2008 - - -
June 2008 - - -
General and admin Sept 2008 36.7 5.1 -
June 2008 39.0 4.7 -
Exploration costs Sept 2008 - 4.6 -
June 2008 - 6.2 -
Cash operating costs Sept 2008 631.7 260.2 -
June 2008 545.5 214.5 -
Plus: Sept 2008 - - -
Production taxes June 2008 - - -
Royalties Sept 2008 31.6 8.9 -
June 2008 34.8 10.0 -
TOTAL CASH COSTS(2) Sept 2008 663.3 269.1 -
June 2008 580.3 224.5 -
Plus: Sept 2008 114.9 25.4 -
Amortisation* June 2008 92.4 40.8 -
Rehabilitation Sept 2008 1.5 - -
June 2008 1.2 - -
TOTAL PRODUCTION COSTS(3) Sept 2008 779.7 294.5 -
June 2008 673.9 265.3 -
Sept 2008 156.3 44.0 -
Gold sold - thousand ounces
June 2008 168.6 50.0 -
TOTAL CASH COSTS - US$/oz Sept 2008 548 790 -
June 2008 443 578 -
TOTAL CASH COSTS - R/kg Sept 2008 136,481 196,567 -
June 2008 110,639 144,373 -
TOTAL PRODUCTION COSTS Sept 2008 645 864 -
- US$/oz June 2008 514 683 -
Australia#
St Ives Agnew
Operating costs(1) Sept 2008 560.2 189.1
June 2008 506.5 190.1
Gold-in-process and Sept 2008 3.0 10.1
inventory change* June 2008 14.3 2.9
Less: Sept 2008 2.1 0.7
Rehabilitation costs June 2008 2.7 0.7
Production taxes Sept 2008 - -
June 2008 - -
General and admin Sept 2008 16.4 6.3
June 2008 20.1 7.0
Exploration costs Sept 2008 7.8 1.3
June 2008 (7.0) 2.4
Cash operating costs Sept 2008 536.9 190.9
June 2008 505.0 182.9
Plus: Sept 2008 - -
Production taxes June 2008 - -
Royalties Sept 2008 17.5 8.7
June 2008 17.5 8.7
TOTAL CASH COSTS(2) Sept 2008 554.4 199.6
June 2008 522.5 191.6
Plus: Sept 2008 230.1
Amortisation* June 2008 228.2
Rehabilitation Sept 2008 2.8
June 2008 3.4
TOTAL PRODUCTION COSTS(3) Sept 2008 986.9
June 2008 945.7
Sept 2008 101.2 52.2
Gold sold - thousand ounces
June 2008 101.5 54.6
TOTAL CASH COSTS - US$/oz Sept 2008 708 494
June 2008 663 452
TOTAL CASH COSTS - R/kg Sept 2008 176,168 122,831
June 2008 165,558 112,905
TOTAL PRODUCTION COSTS Sept 2008 831
- US$/oz June 2008 780
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.
Average exchange rates are US$1 = R7.74 and US$1 = R7.77 for the September 2008
and June 2008 quarters respectively.
South African Operations
Notional cash expenditure## Total
Mines
Total
Operating costs - R`m Sept 2008 4,233.2 2,467.7
June 2008 3,747.5 2,197.1
Capital expenditure Sept 2008 1,802.4 788.1
- R`m June 2008 2,517.2 912.6
Notional cash expenditure - R/kg Sept 2008 226,120 212,742
June 2008 217,065 180,712
Notional cash expenditure - $/oz Sept 2008 909 855
June 2008 869 723
Notional cash expenditure##
Driefontein Kloof
Operating costs - R`m Sept 2008 880.6 785.4
June 2008 741.5 694.2
Capital expenditure Sept 2008 207.7 238.2
- R`m June 2008 302.9 242.4
Notional cash expenditure - R/kg Sept 2008 169,306 210,142
June 2008 153,905 167,940
Notional cash expenditure - $/oz Sept 2008 680 844
June 2008 616 672
Notional cash expenditure##
South
Beatrix Deep
Operating costs - R`m Sept 2008 498.6 303.1
June 2008 459.6 301.8
Capital expenditure Sept 2008 153.5 188.7
- R`m June 2008 151.3 216.0
Notional cash expenditure - R/kg Sept 2008 206,622 579,270
June 2008 166,096 443,702
Notional cash expenditure - $/oz Sept 2008 830 2,328
June 2008 665 1,776
International Operations
Notional cash expenditure##
Total
Operating costs - R`m Sept 2008 1,765.5
June 2008 1,550.4
Capital expenditure Sept 2008 1,014.3
- R`m June 2008 1,604.6
Notional cash expenditure - R/kg Sept 2008 244,099
June 2008 277,046
Notional cash expenditure - $/oz Sept 2008 981
June 2008 1,109
Notional cash expenditure## Ghana Peru
Cerro
Tarkwa Damang Corona
Operating costs - R`m Sept 2008 688.7 274.8 52.7
June 2008 598.4 255.4 -
Capital expenditure Sept 2008 555.5 30.2 167.7
- R`m June 2008 522.9 44.7 686.9
Notional cash expenditure -
- R/kg Sept 2008 256,008 222,790 569,509
June 2008 213,785 192,990 -
Notional cash expenditure
-$/oz Sept 2008 1,029 895 2,289
June 2008 856 773 -
Notional cash expenditure## Australia
St Ives Agnew
Operating costs - R`m Sept 2008 560.2 189.1
June 2008 506.5 190.1
Capital expenditure Sept 2008 212.2 48.7
- R`m June 2008 259.4 90.7
Notional cash expenditure - R/kg Sept 2008 245,440 146,338
June 2008 242,681 165,468
Notional cash expenditure - $/oz Sept 2008 986 588
June 2008 971 662
## Notional cash expenditure (NCE) per kilogram (ounce) = operating costs plus
capital expenditure divided by gold produced.
June 2008 quarter`s NCE for international operations includes Cerro Corona.
Operating and financial results
South African Operations
SOUTH AFRICAN RAND Total Mine
Operations Total
Operating Results Sept 2008 12,698 3,488
Ore milled/treated (000 tons) June 2008 12,259 3,661
Yield (grams per ton) Sept 2008 2.1 4.4
June 2008 2.4 4.7
Gold produced (kilograms) Sept 2008 26,692 15,304
June 2008 28,861 17,208
Gold sold (kilograms) Sept 2008 26,305 15,304
June 2008 28,861 17,208
Gold price received (Rand per kilogram)Sept 2008 217,586 216,702
June 2008 223,568 225,070
Total cash costs (Rand per kilogram) Sept 2008 153,461 153,581
June 2008 125,359 121,984
Notional cash expenditure (Rand per
kilogram) Sept 2008 226,120 212,742
June 2008 217,065 180,712
Operating costs (Rand per ton) Sept 2008 333 707
June 2008 306 600
Financial Results (Rand million)
Revenue Sept 2008 5,723.6 3,316.4
June 2008 6,452.4 3,873.0
Operating costs, net Sept 2008 4,149.7 2,467.7
June 2008 3,731.1 2,197.1
- Operating costs Sept 2008 4,233.2 2,467.7
June 2008 3,747.5 2,197.1
- Gold inventory change Sept 2008 (83.5) -
June 2008 (16.4) -
Operating profit Sept 2008 1,573.9 848.7
June 2008 2,721.3 1,675.9
Amortisation of mining assets Sept 2008 864.1 462.4
June 2008 741.8 389.5
Net operating profit Sept 2008 709.8 386.3
June 2008 1,979.5 1,286.4
Other income/(expense) Sept 2008 (131.6) (79.3)
June 2008 (11.6) (45.6)
Profit before taxation Sept 2008 578.2 307.0
June 2008 1,967.9 1,240.8
Mining and income taxation Sept 2008 283.2 151.1
June 2008 659.8 437.6
- Normal taxation Sept 2008 193.4 68.4
June 2008 505.2 276.1
- Deferred taxation Sept 2008 89.8 82.7
June 2008 154.6 161.5
Profit before exceptional items Sept 2008 295.0 155.9
June 2008 1,308.1 803.2
Exceptional items Sept 2008 115.4 115.2
June 2008 (96.4) (43.8)
Net profit Sept 2008 410.4 271.1
June 2008 1,211.7 759.4
Net profit excluding gains and losses
on Sept 2008 386.2 202.0
foreign exchange, financial
instruments and June 2008 1,275.9 785.3
exceptional items
Capital expenditure Sept 2008 1,802.4 788.1
June 2008 2,517.2 912.6
Planned for next six months to March
2009 4,154.7 1,953.5
SOUTH AFRICAN RAND
Driefontein Kloof
Operating Results Sept 2008 1,536 971
Ore milled/treated (000 tons) June 2008 1,545 1,143
Yield (grams per ton) Sept 2008 4.2 5.0
June 2008 4.4 4.9
Gold produced (kilograms) Sept 2008 6,428 4,871
June 2008 6,786 5,577
Gold sold (kilograms) Sept 2008 6,428 4,871
June 2008 6,786 5,577
Gold price received (Rand per
kilogram) Sept 2008 216,226 217,512
June 2008 224,934 224,583
Total cash costs (Rand per kilogram) Sept 2008 130,149 153,747
June 2008 103,537 119,240
Notional cash expenditure (Rand per
kilogram) Sept 2008 169,306 210,142
June 2008 153,905 167,940
Operating costs (Rand per ton) Sept 2008 573 809
June 2008 480 607
Financial Results (Rand million)
Revenue Sept 2008 1,389.9 1,059.5
June 2008 1,526.4 1,252.5
Operating costs, net Sept 2008 880.6 785.4
June 2008 741.5 694.2
- Operating costs Sept 2008 880.6 785.4
June 2008 741.5 694.2
- Gold inventory change Sept 2008 - -
June 2008 - -
Operating profit Sept 2008 509.3 274.1
June 2008 784.9 558.3
Amortisation of mining assets Sept 2008 139.6 174.8
June 2008 144.4 144.5
Net operating profit Sept 2008 369.7 99.3
June 2008 640.5 413.8
Other income/(expense) Sept 2008 (29.9) (23.9)
June 2008 (18.9) (8.0)
Profit before taxation Sept 2008 339.8 75.4
June 2008 621.6 405.8
Mining and income taxation Sept 2008 115.2 32.5
June 2008 237.1 143.1
- Normal taxation Sept 2008 66.4 1.9
June 2008 180.7 94.9
- Deferred taxation Sept 2008 48.8 30.6
June 2008 56.4 48.2
Profit before exceptional items Sept 2008 224.6 42.9
June 2008 384.5 262.7
Exceptional items Sept 2008 1.7 -
June 2008 21.2 (0.3)
Net profit Sept 2008 226.3 42.9
June 2008 405.7 262.4
Net profit excluding gains and losses
on Sept 2008 225.3 42.9
foreign exchange, financial
instruments and June 2008 392.5 262.7
exceptional items
Capital expenditure Sept 2008 207.7 238.2
June 2008 302.9 242.4
Planned for next six months to March 2009 502.0 538.1
SOUTH AFRICAN RAND
Beatrix South Deep
Operating Results Sept 2008 790 191
Ore milled/treated (000 tons) June 2008 778 195
Yield (grams per ton) Sept 2008 4.0 4.4
June 2008 4.7 6.0
Gold produced (kilograms) Sept 2008 3,156 849
June 2008 3,678 1,167
Gold sold (kilograms) Sept 2008 3,156 849
June 2008 3,678 1,167
Gold price received (Rand per kilogram)Sept 2008 216,413 216,726
June 2008 226,101 224,936
Total cash costs (Rand per kilogram) Sept 2008 150,982 339,694
June 2008 119,467 250,300
Notional cash expenditure (Rand per
kilogram) Sept 2008 206,622 579,270
June 2008 166,096 443,702
Operating costs (Rand per ton) Sept 2008 631 1,587
June 2008 591 1,548
Financial Results (Rand million)
Revenue Sept 2008 683.0 184.0
June 2008 831.6 262.5
Operating costs, net Sept 2008 498.6 303.1
June 2008 459.6 301.8
- Operating costs Sept 2008 498.6 303.1
June 2008 459.6 301.8
- Gold inventory change Sept 2008 - -
June 2008 - -
Operating profit Sept 2008 184.4 (119.1)
June 2008 372.0 (39.3)
Amortisation of mining assets Sept 2008 98.9 49.1
June 2008 89.7 10.9
Net operating profit Sept 2008 85.5 (168.2)
June 2008 282.3 (50.2)
Other income/(expense) Sept 2008 (10.3) (15.2)
June 2008 (7.2) (11.5)
Profit before taxation Sept 2008 75.2 (183.4)
June 2008 275.1 (61.7)
Mining and income taxation Sept 2008 31.4 (28.0)
June 2008 108.1 (50.7)
- Normal taxation Sept 2008 0.1 -
June 2008 0.5 -
- Deferred taxation Sept 2008 31.3 (28.0)
June 2008 107.6 (50.7)
Profit before exceptional items Sept 2008 43.8 (155.4)
June 2008 167.0 (11.0)
Exceptional items Sept 2008 0.2 113.3
June 2008 0.4 (65.1)
Net profit Sept 2008 44.0 (42.1)
June 2008 167.4 (76.1)
Net profit excluding gains and losses
on Sept 2008 43.9 (110.1)
foreign exchange, financial
instruments and June 2008 167.1 (37.0)
exceptional items
Capital expenditure Sept 2008 153.5 188.7
June 2008 151.3 216.0
Planned for next six months to March 2009 323.6 589.8
Operating and financial results
SOUTH AFRICAN RAND
Total
Operating Results
Ore milled/treated (000 tons) Sept 2008 9,210
June 2008 8,598
Yield (grams per ton) Sept 2008 1.2
June 2008 1.4
Gold produced (kilograms) Sept 2008 11,388
June 2008 11,653
Gold sold (kilograms) Sept 2008 11,001
June 2008 11,653
Gold price received (Rand per kilogram) Sept 2008 218,816
June 2008 221,351
Total cash costs (Rand per kilogram) Sept 2008 153,295
June 2008 130,344
Notional cash expenditure (Rand per kilogram) Sept 2008 244,099
June 2008 277,046
Operating costs (Rand per ton) Sept 2008 192
June 2008 180
Financial Results (Rand million)
Revenue Sept 2008 2,407.2
June 2008 2,579.4
Operating costs, net Sept 2008 1,682.0
June 2008 1,534.0
- Operating costs Sept 2008 1,765.5
June 2008 1,550.4
- Gold inventory change Sept 2008 (83.5)
June 2008 (16.4)
Operating profit Sept 2008 725.2
June 2008 1,045.4
Amortisation of mining assets Sept 2008 401.7
June 2008 352.3
Net operating profit Sept 2008 323.5
June 2008 693.1
Other income/(expense) Sept 2008 (52.3)
June 2008 34.0
Profit before taxation Sept 2008 271.2
June 2008 727.1
Mining and income taxation Sept 2008 132.1
June 2008 222.2
- Normal taxation Sept 2008 125.0
June 2008 229.1
- Deferred taxation Sept 2008 7.1
June 2008 (6.9)
Profit before exceptional items Sept 2008 139.1
June 2008 504.9
Exceptional items Sept 2008 0.2
June 2008 (52.6)
Net profit Sept 2008 139.3
June 2008 452.3
Sept 2008 184.2
Net profit excluding gains and losses on
foreign exchange, financial instruments and June 2008 490.6
exceptional items
Capital expenditure Sept 2008 1,014.3
June 2008 1,604.6
Planned for next six months to March 2009 2,201.2
SOUTH AFRICAN RAND Peru
Ghana Cerro
Tarkwa Damang Corona
Operating Results
Ore milled/treated (000 tons) Sept 2008 5,507 1,137 441
June 2008 5,469 1,057 -
Yield (grams per ton) Sept 2008 0.9 1.2 0.9
June 2008 1.0 1.5 -
Gold produced (kilograms) Sept 2008 4,860 1,369 387
June 2008 5,245 1,555 -
Gold sold (kilograms) Sept 2008 4,860 1,369 -
June 2008 5,245 1,555 -
Gold price received (Rand per
kilogram) Sept 2008 216,584 215,997 -
June 2008 221,049 221,672 -
Total cash costs (Rand per
kilogram) Sept 2008 136,481 196,567 -
June 2008 110,639 144,373 -
Notional cash expenditure
(Rand per kilogram) Sept 2008 256,008 222,790 569,509
June 2008 213,785 192,990 -
Operating costs (Rand per ton)Sept 2008 125 242 120
June 2008 109 242 -
Financial Results (Rand
million)
Revenue Sept 2008 1,052.6 295.7 -
June 2008 1,159.4 344.7 -
Operating costs, net Sept 2008 664.3 269.9 (20.1)
June 2008 584.9 225.2 -
- Operating costs Sept 2008 688.7 274.8 52.7
June 2008 598.4 255.4 -
- Gold inventory change Sept 2008 (24.4) (4.9) (72.8)
June 2008 (13.5) (30.2) -
Operating profit Sept 2008 388.3 25.8 20.1
June 2008 574.5 119.5 -
Amortisation of mining assets Sept 2008 120.5 25.4 31.2
June 2008 93.2 41.0 -
Net operating profit Sept 2008 267.8 0.4 (11.1)
June 2008 481.3 78.5 -
Other income/(expense) Sept 2008 (36.5) (13.7) (12.6)
June 2008 (2.3) (0.7) -
Profit before taxation Sept 2008 231.3 (13.3) (23.7)
June 2008 479.0 77.8 -
Mining and income taxation Sept 2008 84.8 3.2 1.4
June 2008 142.2 27.6 -
- Normal taxation Sept 2008 89.9 8.9 -
June 2008 182.7 20.2 -
- Deferred taxation Sept 2008 (5.1) (5.7) 1.4
June 2008 (40.5) 7.4 -
Profit before exceptional
items Sept 2008 146.5 (16.5) (25.1)
June 2008 336.8 50.2 -
Exceptional items Sept 2008 - - -
June 2008 - - -
Net profit Sept 2008 146.5 (16.5) (25.1)
June 2008 336.8 50.2 -
Sept 2008 168.1 (8.2) (25.1)
Net profit excluding gains
and losses on
foreign exchange, financial
instruments and June 2008 336.7 50.2 -
exceptional items
Capital expenditure Sept 2008 555.5 30.2 167.7
June 2008 522.9 44.7 686.9
Planned for next six months
to March 2009 848.2 77.7 672.5
SOUTH AFRICAN RAND
Australia#
St Ives Agnew
Operating Results
Ore milled/treated (000 tons) Sept 2008 1,817 308
June 2008 1,733 339
Yield (grams per ton) Sept 2008 1.7 5.3
June 2008 1.8 5.0
Gold produced (kilograms) Sept 2008 3,147 1,625
June 2008 3,156 1,697
Gold sold (kilograms) Sept 2008 3,147 1,625
June 2008 3,156 1,697
Gold price received (Rand per kilogram)Sept 2008 221,926 221,846
June 2008 221,578 221,567
Total cash costs (Rand per kilogram) Sept 2008 176,168 122,831
June 2008 165,558 112,905
Notional cash expenditure (Rand per
kilogram) Sept 2008 245,440 146,338
June 2008 242,681 165,468
Operating costs (Rand per ton) Sept 2008 308 614
June 2008 292 561
Financial Results (Rand million)
Revenue Sept 2008 698.4 360.5
June 2008 699.3 376.0
Operating costs, net Sept 2008 565.4 202.5
June 2008 526.5 197.4
- Operating costs Sept 2008 560.2 189.1
June 2008 506.5 190.1
- Gold inventory change Sept 2008 5.2 13.4
June 2008 20.0 7.3
Operating profit Sept 2008 133.0 158.0
June 2008 172.8 178.6
Amortisation of mining assets Sept 2008 224.6
June 2008 218.1
Net operating profit Sept 2008 66.4
June 2008 133.3
Other income/(expense) Sept 2008 10.5
June 2008 37.0
Profit before taxation Sept 2008 76.9
June 2008 170.3
Mining and income taxation Sept 2008 42.7
June 2008 52.4
- Normal taxation Sept 2008 26.2
June 2008 26.2
- Deferred taxation Sept 2008 16.5
June 2008 26.2
Profit before exceptional items Sept 2008 34.2
June 2008 117.9
Exceptional items Sept 2008 0.2
June 2008 (52.6)
Net profit Sept 2008 34.4
June 2008 65.3
Sept 2008 49.4
Net profit excluding gains and losses
on
foreign exchange, financial
instruments and June 2008 103.7
exceptional items
Capital expenditure Sept 2008 212.2 48.7
June 2008 259.4 90.7
Planned for next six months to March
2009 419.3 183.5
# As a significant portion of the acquisition price was allocated to tenements
of St Ives and Agnew based on endowment ounces and also as these two Australian
operations are entitled to transfer and then off-set tax losses from one
company to another, it is not meaningful to split the income statement below
operating profit.
Operating and financial results
UNITED STATES DOLLARS
Total Mine
Operations Total
Operating Results
Ore milled/treated (000 tons) Sept 2008 12,698 3,488
June 2008 12,259 3,661
Yield (ounces per ton) Sept 2008 0.068 0.141
June 2008 0.076 0.151
Gold produced (000 ounces) Sept 2008 858.2 492.0
June 2008 927.9 553.2
Gold sold (000 ounces) Sept 2008 845.7 492.0
June 2008 927.9 553.2
Gold price received (dollars per ounce) Sept 2008 874 871
June 2008 895 901
Total cash costs (dollars per ounce) Sept 2008 617 617
June 2008 502 488
Notional cash expenditure (dollars per
ounce) Sept 2008 909 855
June 2008 869 723
Operating costs (dollars per ton) Sept 2008 43 91
June 2008 39 77
Financial Results ($ million)
Revenue Sept 2008 739.5 428.5
June 2008 836.3 500.7
Operating costs, net Sept 2008 536.1 318.8
June 2008 481.6 282.3
- Operating costs Sept 2008 546.9 318.8
June 2008 484.1 282.3
- Gold inventory change Sept 2008 (10.8) -
June 2008 (2.5) -
Operating profit Sept 2008 203.3 109.7
June 2008 354.7 218.4
Amortisation of mining assets# Sept 2008 111.6 59.7
June 2008 95.3 49.6
Net operating profit Sept 2008 91.7 49.9
June 2008 259.5 168.8
Other income/(expenses) Sept 2008 (17.0) (10.2)
June 2008 (1.0) (5.5)
Profit before taxation Sept 2008 74.7 39.7
June 2008 258.5 163.3
Mining and income taxation Sept 2008 36.6 19.5
June 2008 86.6 57.6
- Normal taxation Sept 2008 25.0 8.8
June 2008 67.0 36.3
- Deferred taxation Sept 2008 11.6 10.7
June 2008 19.6 21.3
Profit before exceptional items Sept 2008 38.2 20.1
June 2008 171.9 105.7
Exceptional items Sept 2008 14.9 14.9
June 2008 (13.3) (6.0)
Net profit Sept 2008 53.1 35.0
June 2008 158.6 99.7
Net profit excluding gains and
losses on Sept 2008 49.9 26.1
foreign exchange and exceptional items June 2008 167.2 103.0
Capital expenditure Sept 2008 232.9 101.8
June 2008 326.9 118.1
Planned for next six months to March 2009 523.9 246.3
South African Operations
UNITED STATES DOLLARS
Driefontein Kloof
Operating Results
Ore milled/treated (000 tons) Sept 2008 1,536 971
June 2008 1,545 1,143
Yield (ounces per ton) Sept 2008 0.135 0.161
June 2008 0.141 0.157
Gold produced (000 ounces) Sept 2008 206.7 156.6
June 2008 218.2 179.3
Gold sold (000 ounces) Sept 2008 206.7 156.6
June 2008 218.2 179.3
Gold price received (dollars per ounce) Sept 2008 869 874
June 2008 900 899
Total cash costs (dollars per ounce) Sept 2008 523 618
June 2008 414 477
Notional cash expenditure (dollars per
ounce) Sept 2008 680 844
June 2008 616 672
Operating costs (dollars per ton) Sept 2008 74 105
June 2008 62 78
Financial Results ($ million)
Revenue Sept 2008 179.6 136.9
June 2008 197.8 161.3
Operating costs, net Sept 2008 113.8 101.5
June 2008 95.2 89.3
- Operating costs Sept 2008 113.8 101.5
June 2008 95.2 89.3
- Gold inventory change Sept 2008 - -
June 2008 - -
Operating profit Sept 2008 65.8 35.4
June 2008 102.6 72.0
Amortisation of mining assets# Sept 2008 18.0 22.6
June 2008 18.6 18.4
Net operating profit Sept 2008 47.8 12.8
June 2008 84.0 53.5
Other income/(expenses) Sept 2008 (3.9) (3.1)
June 2008 (2.4) (0.9)
Profit before taxation Sept 2008 43.9 9.7
June 2008 81.6 52.7
Mining and income taxation Sept 2008 14.9 4.2
June 2008 31.2 18.6
- Normal taxation Sept 2008 8.6 0.2
June 2008 23.9 12.3
- Deferred taxation Sept 2008 6.3 4.0
June 2008 7.4 6.3
Profit before exceptional items Sept 2008 29.0 5.5
June 2008 50.4 34.1
Exceptional items Sept 2008 0.2 -
June 2008 3.0 -
Net profit Sept 2008 29.2 5.5
June 2008 53.3 34.1
Net profit excluding gains and
losses on Sept 2008 29.1 5.5
foreign exchange and exceptional items June 2008 51.4 34.0
Capital expenditure Sept 2008 26.8 30.8
June 2008 39.4 31.3
Planned for next six months to March
2009 63.3 67.9
UNITED STATES DOLLARS
Beatrix South Deep
Operating Results
Ore milled/treated (000 tons) Sept 2008 790 191
June 2008 778 195
Yield (ounces per ton) Sept 2008 0.128 0.143
June 2008 0.152 0.192
Gold produced (000 ounces) Sept 2008 101.5 27.3
June 2008 118.3 37.5
Gold sold (000 ounces) Sept 2008 101.5 27.3
June 2008 118.3 37.5
Gold price received (dollars per ounce)Sept 2008 870 871
June 2008 905 900
Total cash costs (dollars per ounce) Sept 2008 607 1,365
June 2008 478 1,002
Notional cash expenditure (dollars per
ounce) Sept 2008 830 2,328
June 2008 665 1,776
Operating costs (dollars per ton) Sept 2008 82 205
June 2008 76 199
Financial Results ($ million)
Revenue Sept 2008 88.2 23.8
June 2008 108.8 32.8
Operating costs, net Sept 2008 64.4 39.2
June 2008 59.3 38.5
- Operating costs Sept 2008 64.4 39.2
June 2008 59.3 38.5
- Gold inventory change Sept 2008 - -
June 2008 - -
Operating profit Sept 2008 23.8 (15.4)
June 2008 49.5 (5.7)
Amortisation of mining assets# Sept 2008 12.8 6.3
June 2008 11.7 0.8
Net operating profit Sept 2008 11.0 (21.7)
June 2008 37.7 (6.5)
Other income/(expenses) Sept 2008 (1.3) (2.0)
June 2008 (0.8) (1.5)
Profit before taxation Sept 2008 9.7 (23.7)
June 2008 37.0 (8.0)
Mining and income taxation Sept 2008 4.1 (3.6)
June 2008 14.6 (6.8)
- Normal taxation Sept 2008 - -
June 2008 0.1 -
- Deferred taxation Sept 2008 4.0 (3.6)
June 2008 14.5 (6.8)
Profit before exceptional items Sept 2008 5.7 (20.1)
June 2008 22.4 (1.2)
Exceptional items Sept 2008 - 14.6
June 2008 - (9.0)
Net profit Sept 2008 5.7 (5.4)
June 2008 22.4 (10.2)
Net profit excluding gains and losses
on Sept 2008 5.7 (14.2)
foreign exchange and exceptional items June 2008 22.5 (4.9)
Capital expenditure Sept 2008 19.8 24.4
June 2008 19.5 27.9
Planned for next six months to March 2009 40.8 74.4
Average exchange rate were US$1 = R7.74 and US$1 = R7.77 for the September
2008 and June 2008 quarters respectively. The Australian dollar exchange rates
were A$1 = R6.97 and A$1 = R7.33 for the September 2008 and June 2008 quarters
respectively.
# As a significant portion of the acquisition price was allocated to tenements
of St Ives and Agnew on endowment ounces and also as these two Australian
operations are entitled to transfer and then off-set tax losses from one
company to another, it is not meaningful to split the income statement below
operating profit. Figures may not add as they are rounded independently.
Operating and financial results
UNITED STATES DOLLARS International Operations
Total
Operating Results
Ore milled/treated (000 tons) Sept 2008 9,210
June 2008 8,598
Yield (ounces per ton) Sept 2008 0.040
June 2008 0.044
Gold produced(000 ounces) Sept 2008 366.1
June 2008 374.7
Gold sold (000 ounces) Sept 2008 353.7
June 2008 374.7
Gold price received Sept 2008 879
(dollars per ounce) June 2008 886
Total cash costs Sept 2008 616
(dollars per ounce) June 2008 522
Notional cash expenditure Sept 2008 981
(dollars per ounce) June 2008 1,109
Operating costs Sept 2008 25
(dollars per ton) June 2008 23
Financial Results ($ million)
Revenue Sept 2008 311.0
June 2008 335.6
Operating costs, net Sept 2008 217.3
June 2008 199.2
- Operating costs Sept 2008 228.1
June 2008 201.7
- Gold inventory change Sept 2008 (10.8)
June 2008 (2.5)
Operating profit Sept 2008 93.7
June 2008 136.4
Amortisation of mining assets# Sept 2008 51.9
June 2008 45.7
Net operating profit Sept 2008 41.8
June 2008 90.7
Other income/(expenses) Sept 2008 (6.8)
June 2008 4.5
Profit before taxation Sept 2008 35.0
June 2008 95.2
Mining and income taxation Sept 2008 17.1
June 2008 29.0
- Normal taxation Sept 2008 16.1
June 2008 30.7
- Deferred taxation Sept 2008 0.9
June 2008 (1.7)
Profit before exceptional items Sept 2008 18.0
June 2008 66.2
Exceptional items Sept 2008 -
June 2008 (7.3)
Net profit Sept 2008 18.0
June 2008 58.9
Net profit excluding gains and Sept 2008 23.8
losses on foreign exchange, June 2008 64.2
financial instruments and
exceptional items
Capital expenditure Sept 2008 131.0
June 2008 208.8
Planned for next six months to March 2009 277.6
UNITED STATES DOLLARS Peru
Ghana Cerro
Tarkwa Damang Corona
Operating Results
Ore milled/treated (000 tons) Sept 2008 5,507 1,137 441
June 2008 5,469 1,057 -
Yield (ounces per ton) Sept 2008 0.028 0.039 0.028
June 2008 0.031 0.047 -
Gold produced(000 ounces) Sept 2008 156.3 44.0 12.4
June 2008 168.6 50.0 -
Gold sold (000 ounces) Sept 2008 156.3 44.0 -
June 2008 168.6 50.0 -
Gold price received Sept 2008 870 868 -
(dollars per ounce) June 2008 885 887 -
Total cash costs Sept 2008 548 790 -
(dollars per ounce) June 2008 443 578 -
Notional cash expenditure Sept 2008 1,029 895 2,289
(dollars per ounce) June 2008 856 773 -
Operating costs Sept 2008 16 31 15
(dollars per ton) June 2008 14 31 -
Financial Results ($ million)
Revenue Sept 2008 136.0 38.2 -
June 2008 151.1 44.8 -
Operating costs, net Sept 2008 85.8 34.9 (2.6)
June 2008 76.0 29.3 -
- Operating costs Sept 2008 89.0 35.5 6.8
June 2008 77.8 33.3 -
- Gold inventory change Sept 2008 (3.2) (0.6) (9.4)
June 2008 (1.8) (4.0) -
Operating profit Sept 2008 50.2 3.3 2.6
June 2008 75.1 15.5 -
Amortisation of mining
assets# Sept 2008 15.6 3.3 4.0
June 2008 12.0 5.4 -
Net operating profit Sept 2008 34.6 0.1 (1.4)
June 2008 63.1 10.1 -
Other income/(expenses) Sept 2008 (4.7) (1.8) (1.6)
June 2008 (0.3) - -
Profit before taxation Sept 2008 29.9 (1.7) (3.1)
June 2008 62.7 10.1 -
Mining and income taxation Sept 2008 11.0 0.4 0.2
June 2008 18.6 3.6 -
- Normal taxation Sept 2008 11.6 1.1 -
June 2008 24.7 2.7 -
- Deferred taxation Sept 2008 (0.7) (0.7) 0.2
June 2008 (6.1) 1.0 -
Profit before exceptional
items Sept 2008 18.9 (2.1) (3.2)
June 2008 44.1 6.5 -
Exceptional items Sept 2008 - - -
June 2008 - - -
Net profit Sept 2008 18.9 (2.1) (3.2)
June 2008 44.1 6.5 -
Net profit excluding gains
and Sept 2008 21.7 (1.1) (3.2)
losses on foreign exchange, June 2008 44.0 6.5 -
financial instruments and
exceptional items
Capital expenditure Sept 2008 71.8 3.9 21.7
June 2008 68.8 5.7 88.4
Planned for next six months to March 2009 107.0 9.8 84.8
UNITED STATES DOLLARS Australian Dollars
Australia#
St Ives Agnew
Operating Results
Ore milled/treated (000 tons) Sept 2008 1,817 308
June 2008 1,733 339
Yield (ounces per ton) Sept 2008 0.056 0.170
June 2008 0.059 0.161
Gold produced(000 ounces) Sept 2008 101.2 52.2
June 2008 101.5 54.6
Gold sold (000 ounces) Sept 2008 101.2 52.2
June 2008 101.5 54.6
Gold price received Sept 2008 892 891
(dollars per ounce) June 2008 887 887
Total cash costs Sept 2008 708 494
(dollars per ounce) June 2008 663 452
Notional cash expenditure Sept 2008 986 588
(dollars per ounce) June 2008 971 662
Operating costs Sept 2008 40 79
(dollars per ton) June 2008 38 72
Financial Results ($ million)
Revenue Sept 2008 90.2 46.6
June 2008 90.6 49.1
Operating costs, net Sept 2008 73.0 26.2
June 2008 68.5 25.4
- Operating costs Sept 2008 72.4 24.4
June 2008 65.8 24.8
- Gold inventory change Sept 2008 0.7 1.7
June 2008 2.7 0.5
Operating profit Sept 2008 17.2 20.4
June 2008 22.1 23.7
Amortisation of mining assets# Sept 2008 29.0
June 2008 28.3
Net operating profit Sept 2008 8.6
June 2008 17.5
Other income/(expenses) Sept 2008 1.4
June 2008 4.9
Profit before taxation Sept 2008 9.9
June 2008 22.3
Mining and income taxation Sept 2008 5.5
June 2008 6.8
- Normal taxation Sept 2008 3.4
June 2008 3.4
- Deferred taxation Sept 2008 2.1
June 2008 3.4
Profit before exceptional items Sept 2008 4.4
June 2008 15.6
Exceptional items Sept 2008 -
June 2008 (7.3)
Net profit Sept 2008 4.4
June 2008 8.3
Net profit excluding gains and Sept 2008 6.4
losses on foreign exchange, June 2008 13.7
financial instruments and
exceptional items
Capital expenditure Sept 2008 27.4 6.3
June 2008 34.0 12.0
Planned for next six months to March 2009 52.9 23.1
Australia #
St Ives Agnew
Operating Results
Ore milled/treated (000 tons) Sept 2008 1,817 308
June 2008 1,733 339
Yield (ounces per ton) Sept 2008 0.056 0.170
June 2008 0.059 0.161
Gold produced(000 ounces) Sept 2008 101.2 52.2
June 2008 101.5 54.6
Gold sold (000 ounces) Sept 2008 101.2 52.2
June 2008 101.5 54.6
Gold price received Sept 2008 990 990
(dollars per ounce) June 2008 949 949
Total cash costs Sept 2008 786 548
(dollars per ounce) June 2008 702 479
Notional cash expenditure Sept 2008 1,095 653
(dollars per ounce) June 2008 1,030 702
Operating costs Sept 2008 44 88
(dollars per ton) June 2008 40 77
Financial Results ($ million)
Revenue Sept 2008 100.2 51.7
June 2008 95.8 52.2
Operating costs, net Sept 2008 81.1 29.1
June 2008 72.6 26.7
- Operating costs Sept 2008 80.4 27.1
June 2008 69.8 26.5
- Gold inventory change Sept 2008 0.7 1.9
June 2008 2.8 0.2
Operating profit Sept 2008 19.1 22.7
June 2008 23.2 25.5
Amortisation of mining assets# Sept 2008 32.2
June 2008 29.9
Net operating profit Sept 2008 9.5
June 2008 18.8
Other income/(expenses) Sept 2008 1.5
June 2008 5.1
Profit before taxation Sept 2008 11.0
June 2008 23.9
Mining and income taxation Sept 2008 6.1
June 2008 7.2
- Normal taxation Sept 2008 3.8
June 2008 3.6
- Deferred taxation Sept 2008 2.4
June 2008 3.6
Profit before exceptional items Sept 2008 4.9
June 2008 16.7
Exceptional items Sept 2008 -
June 2008 (8.1)
Net profit Sept 2008 4.9
June 2008 8.7
Net profit excluding gains and Sept 2008 7.1
losses on foreign exchange, June 2008 14.6
financial instruments and
exceptional items
Capital expenditure Sept 2008 30.4 7.0
June 2008 36.4 13.0
Planned for next six months to March 2009 62.4 27.3
Underground and surface
South African rand and metric units
South African Operations
Operating Results Total Mine
Operations Total Driefontein
Ore milled / treated (000 ton)
- underground Sept 2008 2,698 2,277 724
June 2008 2,749 2,379 760
- surface Sept 2008 10,000 1,211 812
June 2008 9,510 1,282 785
- total Sept 2008 12,698 3,488 1,536
June 2008 12,259 3,661 1,545
Yield (grams per ton)
- underground Sept 2008 6.3 6.4 8.1
June 2008 6.7 6.8 8.2
- surface Sept 2008 1.0 0.7 0.7
June 2008 1.1 0.8 0.7
- combined Sept 2008 2.1 4.4 4.2
June 2008 2.4 4.7 4.4
Gold produced (kilograms)
- underground Sept 2008 16,915 14,467 5,873
June 2008 18,517 16,188 6,211
- surface Sept 2008 9,777 837 555
June 2008 10,344 1,020 575
- total Sept 2008 26,692 15,304 6,428
June 2008 28,861 17,208 6,786
Operating costs (Rand per
ton)
- underground Sept 2008 1,008 1,038 1,127
June 2008 887 886 896
- surface Sept 2008 151 85 80
June 2008 138 70 78
- total Sept 2008 333 707 573
June 2008 306 600 480
Operating Results
Kloof Beatrix South
Deep
Ore milled / treated (000 ton)
- underground Sept 2008 603 790 160
June 2008 688 778 153
- surface Sept 2008 368 - 31
June 2008 455 - 42
- total Sept 2008 971 790 191
June 2008 1,143 778 195
Yield (grams per ton)
- underground Sept 2008 7.7 4.0 5.1
June 2008 7.5 4.7 7.4
- surface Sept 2008 0.7 - 1.2
June 2008 0.9 - 0.9
- combined Sept 2008 5.0 4.0 4.4
June 2008 4.9 4.7 6.0
Gold produced (kilograms)
- underground Sept 2008 4,626 3,156 812
June 2008 5,168 3,678 1,131
- surface Sept 2008 245 - 37
June 2008 409 - 36
- total Sept 2008 4,871 3,156 849
June 2008 5,577 3,678 1,167
Operating costs (Rand per ton)
- underground Sept 2008 1,241 631 1,884
June 2008 970 591 1,958
- surface Sept 2008 100 - 55
June 2008 59 - 52
- total Sept 2008 809 631 1,587
June 2008 607 591 1,548
International Operations
Operating Results Ghana
Total Tarkwa Damang
Ore milled / treated (000 ton)
- underground Sept 2008 421 - -
June 2008 370 - -
- surface Sept 2008 8,789 5,507 1,137
June 2008 8,228 5,469 1,057
- total Sept 2008 9,210 5,507 1,137
June 2008 8,598 5,469 1,057
Yield (grams per ton)
- underground Sept 2008 5.8 - -
June 2008 6.3 - -
- surface Sept 2008 1.0 0.9 1.2
June 2008 1.1 1.0 1.5
- combined Sept 2008 1.2 0.9 1.2
June 2008 1.4 1.0 1.5
Gold produced (kilograms)
- underground Sept 2008 2,448 - -
June 2008 2,329 - -
- surface Sept 2008 8,940 4,860 1,369
June 2008 9,324 5,245 1,555
- total Sept 2008 11,388 4,860 1,369
June 2008 11,653 5,245 1,555
Operating costs (Rand per ton)
- underground Sept 2008 843 - -
June 2008 897 - -
- surface Sept 2008 161 125 242
June 2008 148 109 242
- total Sept 2008 192 125 242
June 2008 180 109 242
Operating Results Peru
Cerro Australia
Corona St Ives Agnew
Ore milled / treated (000 ton)
- underground Sept 2008 - 245 176
June 2008 - 184 186
- surface Sept 2008 441 1,572 132
June 2008 - 1,549 153
- total Sept 2008 441 1,817 308
June 2008 - 1,733 339
Yield (grams per ton)
- underground Sept 2008 - 4.2 8.1
June 2008 - 4.5 8.1
- surface Sept 2008 0.9 1.4 1.5
June 2008 - 1.5 1.3
- combined Sept 2008 0.9 1.7 5.3
June 2008 - 1.8 5.0
Gold produced (kilograms)
- underground Sept 2008 - 1,023 1,425
June 2008 - 831 1,498
- surface Sept 2008 387 2,124 200
June 2008 - 2,325 199
- total Sept 2008 387 3,147 1,625
June 2008 - 3,156 1,697
Operating costs (Rand per
ton)
- underground Sept 2008 - 828 863
June 2008 - 874 919
- surface Sept 2008 120 227 282
June 2008 - 223 125
- total Sept 2008 120 308 614
June 2008 - 292 561
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 September 2008 quarter
Carbon Main VCR
Reef Leader
Advanced (m) 1,451 1,009 1,368
Advanced on reef (m) 319 528 82
Sampled (m) 339 459 36
Channel width (cm) 33 42 16
Average value - (g/t) 39.3 11.5 58.1
- (cm.g/t) 1,299 479 916(1)
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
Kloof September 2008 quarter
Reef Kloof Main VCR
Advanced (m) 181 1,039 5,533
Advanced on reef (m) 113 248 674
Sampled (m) 105 225 636
Channel width (cm) 197 69 133
Average value - (g/t) 3.7 9.4 15.4
- (cm.g/t) 724 647 2,057
June 2008 quarter
Reef Kloof Main VCR
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 1,849
Beatrix September 2008 quarter
Reef Beatrix Kalkoenkrans
Advanced (m) 7,029 2,231
Advanced on reef (m) 1,383 237
Sampled (m) 1,515 189
Channel width (cm) 106 85
Average value - (g/t) 6.2 22.4
- (cm.g/t) 657 1,906
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 1,253
South Deep September 2008 quarter
Reef VCR Elsburg
Advanced (m) - 1,289
Advanced on reef (m) - 1,103
Sampled (m) - -
Channel width (cm) - -(2)
Average value - (g/t) - 4.6
- (cm.g/t) - -(3)
June 2008 quarter
Reef VCR Elsburg
Advanced (m) 300 689
Advanced on reef (m) - 680
Sampled (m) - -
Channel width (cm) - -(2)
Average value - (g/t) - 6.7
- (cm.g/t) - -(3)
1) The secondary support initiative resulted in less development at the high
grade shafts.
2) Trackless development in the Elsburg reefs is evaluated by means of the
block model.
3) Full channel width not fully exposed in development, hence not reported.
Administration and corporate information
Corporate Secretary
CAIN FARREL
Tel: (+27)(11) 644 2525
Fax: (+27)(11) 484 0626
e-mail: cain.farrel@goldfields.co.za
Registered Offices
JOHANNESBURG
Gold Fields Limited
24 St Andrews Road
Parktown
Johannesburg
2193
Postnet Suite 252
Private Bag X30500
Houghton 2041
Tel: (+27)(11) 644 2400
Fax: (+27)(11) 484 0626
LONDON
St James`s Corporate Services Limited
6 St James`s Place
London SW1A 1NP
United Kingdom
Tel: (+44)(20) 7499 3916
Fax: (+44)(20) 7491 1989
American Depository Receipts
Transfer Agent
Bank of New York
Shareholder Relations
P O Box 11258
New York, NY20286-1258
US toll-free telephone: (1)(888) 269 2377
e-mail: shareowner-svcs@mail.bnymellon.com
Gold Fields Limited
Incorporated in the Republic of South Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN - ZAE 000018123
Investor and Media Enquiries
WILLIE JACOBSZ
Tel: (+508) 358 0188
Mobile: (+857) 241 7127
e-mail: wjacobsz@gfexpl.com
Transfer Secretaries
South Africa
Computershare Investor Services
(Proprietary) Limited
Ground Floor
70 Marshall Street
Johannesburg, 2001
P O Box 61051
Marshalltown, 2107
Tel: (+27)(11) 370 5000
Fax: (+27)(11) 370 5271
United Kingdom
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
England
Tel: (+44)(20) 8639 3399
Fax: (+44)(20) 8658 3430
WEBSITE
http://www.goldfields.co.za
Forward Looking Statements
Certain statements in this document constitute "forward looking statements"
within the meaning of Section 27A of the US Securities Act of 1933 and Section
21E of the US Securities Exchange Act of 1934.
Such forward looking statements involve known and unknown risks, uncertainties
and other important factors that could cause the actual results, performance or
achievements of the company to be materially different from the future results,
performance or achievements expressed or implied by such forward looking
statements.
Such risks, uncertainties and other important factors include among others:
economic, business and political conditions in South Africa; decreases in the
market price of gold; hazards associated with underground and surface gold
mining; labour disruptions; changes in government regulations, particularly
environmental regulations; changes in exchange rates; currency devaluations;
inflation and other macro-economic factors; and the impact of the AIDS crisis
in South Africa. These forward looking statements speak only as of the date of
this document.
The company undertakes no obligation to update publicly or release any
revisions to these forward looking statements to reflect events or
circumstances after the date of this document or to reflect the occurrence of
unanticipated events.
Directors
A J Wright (Chairman)
N J Holland * (Chief Executive Officer)
K Ansah#
J G Hopwood
G Marcus
R P Menell
D N Murray
D M J Ncube
R L Pennant-Rea *
C I von Christierson
G M Wilson
* British
# Ghanaian
Date: 29/10/2008 07:10:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
