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GFI
GOGOF
GFI - Gold Fields - Full Production Achieved On Expansion Projects At End
December 2008
Gold Fields Limited
Incorporated in the Republic of South Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN: ZAE000018123
FULL PRODUCTION ACHIEVED ON EXPANSION PROJECTS AT END DECEMBER 2008
JOHANNESBURG. 29 January 2009, Gold Fields Limited (JSE and NYSE: GFI) today
announced headline earnings for the December 2008 quarter of R484 million,
compared with earnings of R39 million and R456 million for the September 2008
and December 2007 quarters respectively. In US dollar terms headline
earnings for the December 2008 quarter were US$55 million, compared with
earnings of US$5 million and US$67 million in the September 2008 and December
2007 quarters respectively.
December 2008 quarter salient features:
- Attributable gold production of 839,000 ounces; 5 per cent higher than
the
previous quarter and in line with guidance;
- Cash costs were flat at R153,893 per kilogram but decreased by 21 per
cent in dollar terms from US$617 per ounce in the September quarter to US$487
per ounce in the December quarter due to the weaker rand and Australian
dollar;
- NCE increased by 8 per cent to R244,210 per kilogram this quarter but
decreased from US$909 per ounce to US$774 per ounce due to the weaker rand
and Australian dollar;
- Project capital expenditure at Cerro Corona and Tarkwa fully completed
in line with guidance;
- Cerro Corona achieved full production late in the December quarter;
- Kloof Main shaft infrastructure rehabilitation completed as planned;
- The CIL plant expansion at Tarkwa achieved rock into mill on 12 December
2008 and name plate capacity on 23 December 2008.
Interim dividend number 70 of 30 SA cents per share is payable on 23 February
2009.
Statement by Nick Holland,
Chief Executive Officer of Gold Fields:
"As per the guidance provided to the market, the first half of F2009 was
extremely challenging for Gold Fields. During this period we had to make a
number of challenging decisions regarding the rehabilitation of our South
African mines, and complete our international growth projects.
We have also taken safety to a new level. While we consider this as work-in-
progress, we have already seen significant improvements on all safety
metrics. Particularly significant is the decline in the fatal injuries
which, to December for the year to date, stands at eight compared with the
total of 47 for F2008. Our objective is to achieve a significant decline in
serious injuries and to eliminate all fatal injuries on our mines.
Despite the impact of the Christmas break on the South Africa operations, and
the decline in the copper price which negatively impacted the conversion of
copper into gold equivalent ounces at Cerro Corona, attributable production
for Q3 F2009 is expected to be approximately 960,000 ounces.
As a result of the lower copper price and its impact on the conversion of
Cerro Corona`s copper into gold equivalent ounces, total gold production for
the Group is expected to stabilise at a run rate of approximately 975,000
equivalent ounces during the month of March.
The expected shortfall of 25,000 ounces against our targeted run rate of one
million ounces is entirely attributable to the conversion of Cerro Corona`s
copper into gold equivalent ounces at the lower copper price. However, the
mine is expected to achieve its design capacity in actual gold and copper
production.
With our major growth projects in Ghana and Peru completed, capital
expenditure is expected to decline significantly. Combined with the expected
increase in production and our ongoing efforts to reduce our cash costs and
notional cash expenditure, this will enable us to benefit more from the
higher gold price and move the company to a cash positive position.
Electricity supply in South Africa, which constrained our operating
performance in F2008, has stabilised. More importantly, Gold Fields has
ameliorated the impact of power rationing by implementing several energy
saving projects.
In light of the current credit crisis, Gold Fields` balance sheet remains
robust with manageable debt levels and adequate liquidity.
For the remainder of F2009 and through F2010 our main priority is to further
improve our safety performance and to increase production by optimising our
existing mines."
Stock data
Number of shares in issue
- at end December 2008 653,440,408
- average for the quarter 653,341,082
Free Float 100%
ADR Ratio 1:1
Bloomberg / Reuters GFISJ / GFLJ.J
JSE Limited - (GFI)
Range - Quarter ZAR54.00 - ZAR96.35
Average Volume - Quarter 3,110,756 shares / day
NYSE - (GFI)
Range - Quarter US$4.90 - US$9.64
Average Volume - Quarter 7,617,060 shares / day
SOUTH AFRICAN RAND
Salient features
Six months to
Dec Dec
2007# 2008
Gold produced* 60,522 50,910
Total cash cost 99,988 153,685
Notional cash expenditure 165,639 235,408
Tons milled 24,980 26,048
Revenue 162,857 234,413
Operating costs 266 337
Operating profit 3,754 4,140
Operating margin 36 32
2,367 522
Net earnings
363 80
866 523
Headline earnings
133 80
Net earnings excluding 1,011 663
gains and losses on foreign
exchange, financial
instruments, exceptional
items and share of loss of 155 101
associates after taxation
Quarter
Dec Sept Dec
2007# 2008 2008
Gold produced* 29,861 24,817 26,093 kg
Total cash cost 101,532 153,461 153,893 R/kg
Notional cash expenditure 171,252 226,120 244,210 R/kg
Tons milled 12,630 12,698 13,350 000
Revenue 170,488 217,586 250,058 R/kg
Operating costs 265 333 340 R/ton
Operating profit 2,037 1,574 2,566 Rm
Operating margin 38 27 36 %
1,938 39 483 Rm
Net earnings 297 6 74 SA c.p.s.
456 39 484 Rm
Headline earnings 70 6 74 SA c.p.s.
Net earnings excluding 603 120 542 Rm
gains and losses on foreign
exchange, financial
instruments, exceptional
items and share of loss of 93 18 83 SA c.p.s.
associates after taxation
UNITED STATES DOLLARS
Salient features
Quarter
Dec Sept
2008 2008
Gold produced* oz (000) 839 798
Total cash cost $/oz 487 617
Notional cash expenditure $/oz 774 909
Tons milled 000 13,350 12,698
Revenue $/oz 792 874
Operating costs $/ton 35 43
Operating profit $m 268 203
Operating margin % 36 27
$m 54 5
Net earnings US c.p.s. 8 1
$m 55 5
Headline earnings US c.p.s. 8 1
Net earnings excluding $m 60 16
gains and losses on foreign
exchange, financial
instruments, exceptional
items and share of loss of US c.p.s. 10 2
associates after taxation
Quarter Six months to
Dec Dec Dec
2007# 2008 2007#
Gold produced* 960 1,637 1,946
Total cash cost 467 544 449
Notional cash expenditure 788 834 743
Tons milled 12,630 26,048 24,980
Revenue 784 830 731
Operating costs 39 38 38
Operating profit 300 472 542
Operating margin 38 32 36
281 59 342
Net earnings 43 9 52
67 60 125
Headline earnings 10 9 19
Net earnings excluding 88 76 146
gains and losses on foreign
exchange, financial
instruments, exceptional
items and share of loss of 13 12 22
associates after taxation
* Attributable - All companies wholly owned except for Ghana (71.1%) and
Cerro
Corona (80.7%).
# Prior period operational results 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 six fatal injuries during the
December 2008 quarter, three due to seismic induced falls of ground, one ore
pass accident, one cage related accident and a tramming accident. The fatal
injury frequency rate for the quarter regressed from 0.05 to 0.15 per million
hours worked. However, a big improvement in safety for the six months to
December has been achieved, with 8 fatalities compared with 47 fatalities in
financial 2008. All the other safety measures improved quarter on quarter,
with the lost time injury frequency rate improving from 5.20 to 4.92 the
serious injury frequency rate improving from 3.23 to 2.69 and the days lost
frequency rate from 220 to 215.
Du Pont has completed its assessment and their reports have been received for
the South African region. A team has been selected to work through these
reports and draft a strategy and action plan. This action plan is planned to
be completed by the end of March. The stakeholders will be involved and kept
informed with the progress.
Financial review
Quarter ended 31 December 2008 compared with quarter ended 30 September 2008
Revenue
Attributable gold production for the December 2008 quarter amounted to
839,000 ounces compared with 798,000 ounces in the September quarter, an
increase of 5 per cent. This was in line with the guidance given on 29
October 2008. Production at the South African operations increased from
492,000 ounces to 501,000 ounces or 2 per cent. Attributable gold production
at the international operations increased 10 per cent from 306,000 ounces to
338,000 ounces.
At the South African operations the increase in gold production in the
December quarter was directly attributable to an increase in tonnage and
yield at South Deep and to a lesser extent at Beatrix. The quarter on
quarter increase at South Deep was in line with guidance and in line with an
expected gradual increase in production. At Beatrix the 5 per cent quarter
on quarter increase in gold production was due to an improved blend.
Driefontein decreased gold production by 6 per cent quarter on quarter due to
production stoppages caused by the two fatalities arising from a seismic
induced accident. Gold production at Kloof decreased by 3 per cent compared
with the September quarter. However, this was 12 per cent above guidance due
to higher than planned grades.
At the international operations, managed gold production at Tarkwa decreased
by 11 per cent. This was due to a build-up of gold-in-process at the North
and South heap leach pads towards the end of the quarter and commissioning of
the plant expansion in December. At Damang, gold production increased by 15
per cent due to improved plant availability and an increase in yield. Gold
production from Australia was similar to the previous quarter. Agnew
decreased by 14 per cent as forecast. St Ives increased by 7 per cent quarter
on quarter due to an increase in volumes. Cerro Corona reached full
production levels by the end of the quarter and despite a falling copper
price, which reduced equivalent gold ounces, the mine produced in line with
guidance, delivering 61,500 equivalent ounces during the quarter.
The average quarterly US dollar gold price achieved decreased 9 per cent from
US$874 per ounce in the September quarter to US$792 per ounce in the December
quarter. The average rand/US dollar exchange rate of R9.82 was 27 per cent
weaker than the R7.74 achieved in the September quarter. As a result of the
above factors the rand gold price strengthened from R217,586 per kilogram to
R250,058 per kilogram, a 15 per cent increase. The Australian dollar gold
price increased from A$990 per ounce to A$1,199 per ounce as the US dollar
strengthened against the Australian dollar from 0.90 in the September quarter
to 0.68 in the December quarter.
The increase in the rand gold price achieved, together with the increase in
production, resulted in revenue of R7,074 million, an increase in rand terms
of 24 per cent compared with the R5,724 million achieved in the September
quarter.
In US dollar terms revenue decreased by 3 per cent from US$740 million in the
September quarter to US$718 million in the December quarter due to the
weakening of the rand.
Operating costs
Operating costs increased from R4,233 million (US$547 million) in the
September quarter to R4,542 million (US$453 million) in the December quarter
due to the effect of translating costs at the international operations into
rand at the weaker exchange rate and due to the inclusion of Cerro Corona as
an operational mine for the first time this quarter. Total cash cost was flat
at R153,893 per kilogram, but decreased 21 per cent from US$617 per ounce, in
the September quarter to US$487 per ounce in the December quarter as a result
of the weaker rand.
At the South African operations, operating costs decreased from R2,468
million (US$319 million) to R2,430 million (US$239 million), a decrease of 2
per cent in rand terms. This decrease was mainly due to the restructuring at
South Deep completed in the previous quarter and the lower summer electricity
tariffs at all the operations. Total cash cost at the South African
operations decreased by 3 per cent from R153,581 per kilogram (US$617 per
ounce) to R148,944 per kilogram (US$472 per ounce).
Operating costs at the international operations, including gold-in-process
movements, decreased by 3 per cent in dollar terms from US$217 million in the
September quarter to US$211 million in the December quarter. This was mainly
due to the weaker Australian dollar, despite including Cerro Corona for the
first time this quarter. All operations in their local currency reduced costs
quarter on quarter, except at St Ives as a result of an increase in its third
party royalty. In rand terms costs increased from R1,682 million to R2,079
million in the December quarter due to the weaker rand. Total cash cost at
the international operations decreased by 18 per cent from US$616 per ounce
in the September quarter to US$507 per ounce in the December 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 its NCE per ounce to
approximately US$725 per ounce and thereby focus on free cash flow.
The NCE for the Group for the December quarter amounted to R244,210 per
kilogram (US$774 per ounce) compared with R226,120 per kilogram (US$909 per
ounce) in the September quarter. These figures include project expenditure
at Cerro Corona and Tarkwa. This result was in line with the guidance
adjusted for changes in the exchange rate. Applying September quarter
exchange rates to the December quarter figures would result in the NCE in
rand and US dollar terms being similar quarter on quarter.
At the South African operations the NCE increased from R212,742 per kilogram
(US$855 per ounce) in the September quarter to R214,277 per kilogram (US$679
per ounce) in the December quarter, which was in line with the guidance. At
the international operations (including Cerro Corona) the NCE decreased
quarter on quarter from US$981 per ounce to US$891 per ounce.
Operating margin
The net effect of the changes in revenue and costs, after taking into account
gold-in-process movements, was a 63 per cent increase in operating profit
from R1,574 million to R2,566 million and a 32 per cent increase in dollar
terms from US$203 million to US$268 million. The Group operating margin was
36 per cent. The margin at the South African operations increased from 26
per cent to 39 per cent, while the margin at the international operations
increased from 30 per cent to 33 per cent.
Amortisation
Amortisation increased from R902 million (US$117 million) in the September
quarter to R1,033 million (US$104 million) in the December quarter. At the
South African operations amortisation increased from R462 million (US$60
million) to R480 million (US$48 million). This was mainly at Beatrix and
South Deep because of the higher gold production. At the international
operations amortisation increased from R402 million (US$52 million) to R515
million (US$53 million). This was mainly due to the increase at Cerro Corona
of R60 million (US$5 million) as well as the increase in production at Damang
and St Ives, as well as the effect of the exchange rate movement.
Other
Net interest paid was R164 million (US$17 million) for the December quarter
compared with R112 million (US$14 million) in the September quarter. This
increase was mainly due to the higher debt levels, partly offset by an
increase in the capitalisation of qualifying interest. In the December
quarter interest of R30 million (US$3 million) was capitalized compared with
R15 million (US$2 million) in the September quarter. In the December quarter
interest paid of R210 million (US$22 million) was partly offset by interest
received of R46 million (US$5 million). This compares with interest paid of
R153 million (US$19 million), partly offset by interest received of R41
million (US$5 million) in the September quarter.
The share of losses of associates after taxation decreased from R104 million
(US$14 million) in the September quarter to R47 million (US$4 million) in the
December quarter. This decrease relates to a reduction in losses incurred by
Rusoro.
The gain on foreign exchange of R46 million (US$5 million) in the December
quarter compares with a loss of R6 million (US$1 million) in the September
quarter. The gain in the December quarter was mainly due to an exchange gain
on the dollar proceeds received in respect of the South Deep fire insurance
claim of US$17 million and an unrealised gain from translating our offshore
insurance captive into its functional currency. The loss in the September
quarter was due to the conversion of offshore cash holdings into the
functional currency i.e. rands.
The loss on financial instruments increased from R56 million (US$7 million)
in the September quarter to R66 million (US$7 million) in the December
quarter. The loss in the December quarter was mainly due to a marked to
market loss on diesel hedges in Ghana and Australia, which amounted to R52
million (US$5 million) and R17 million (US$2 million) respectively. The loss
in the September quarter was mainly due to a marked to market loss on diesel
hedges in Ghana and Australia, which amounted to R37 million (US$5 million)
and R16 million (US$2 million) respectively.
Share based payments amounted to R94 million (US$9 million) in the December
quarter, which was similar to the September quarter.
Other costs increased from R21 million (US$3 million) in the September
quarter to R52 million (US$6 million) in the December quarter. The majority
of this increase was due to a R26 million (US$2.9 million) sale agreement
adjustment with Orezone with reference to the sale of Essakane.
Exploration
Exploration expenditure increased from R68 million (US$9 million) in the
September quarter to R136 million (US$15 million) in the December quarter.
This increase was due to higher expenditure in Kazakhstan at the Talas joint
venture and in China at the Sino alliance. Added to this was the translation
effect of converting dollar expenditure at the 27 per cent weaker rand.
Refer to the Exploration and Corporate Development section for more detail.
Exceptional items
The exceptional loss in the December quarter amounted to R5 million (US$2
million) compared with a gain of R114 million (US$15 million) in the
September quarter. The loss in the December quarter relates to the
finalisation of restructuring costs at South Deep. The gain in the September
quarter included a R132 million (US$17 million) insurance claim in respect of
South Deep, partially offset by R18 million (US$2 million) restructuring
costs, also at South Deep.
Taxation
Taxation for the quarter amounted to R496 million (US$53 million) compared
with R257 million (US$33 million) in the September quarter. The increase
reflects the increase in profit before tax and the increase in non-deductible
exploration costs for the quarter. The tax provision includes normal and
deferred taxation at all operations, together with government royalties at
the international operations.
Earnings
Net profit attributable to ordinary shareholders amounted to R483 million
(US$54 million) or 74 SA cents per share (US$0.08 per share), compared with
R39 million (US$5 million) or 6 SA cents per share (US$0.01 per share) in the
September quarter.
Headline earnings i.e. earnings less the after tax effect of asset sales,
impairments, the sale of investments and discontinued operations, amounted to
R484 million (US$55 million) or 74 SA cents per share (US$0.08 per share),
compared with earnings of R39 million (US$5 million) or 6 SA cents per share
(US$0.01 per share) in the September quarter.
Earnings excluding exceptional items as well as net gains and losses on
foreign exchange, financial instruments, losses of associates after taxation
and discontinued operations amounted to R542 million (US$60 million) or 83 SA
cents per share (US$0.10 per share), compared with earnings of R120 million
(US$16 million) or 18 SA cents per share (US$0.02 per share) reported in the
September quarter.
Cash flow
The cash inflow from operating activities for the quarter amounted to R1,787
million (US$186 million), compared with a cash outflow of R32 million (US$1
million) in the September quarter. This quarter on quarter increase of
R1,819 million (US$187 million) is due mainly to the increase in profit
before tax of R688 million (US$83 million), a working capital outflow of R577
million (US$75 million) in the September quarter compared with an outflow of
R269 million (US$22 million) in the December quarter and a decrease in
taxation paid from R913 million (US$115 million) to R133 million (US$19
million).
Capital expenditure increased from R1,813 million (US$234 million) in the
September quarter to R2,345 million (US$239 million) in the December quarter.
This increase was mainly due to the weaker rand and the finalisation of the
Cerro Corona project.
At the South African operations capital expenditure increased from R788
million
(US$102 million) in the September quarter to R907 million (US$91 million) in
the
December quarter. This increase of R119 million was mainly as a result of
increased expenditure on trackless mining and fleet equipment at South Deep,
and
increased ore reserve development (ORD). Expenditure on ORD at Driefontein,
Kloof, and Beatrix accounted for R100 million (US$10 million), R126 million
(US$13 million), and R75 million (US$8 million) respectively.
At the international operations capital expenditure increased from R1,014
million (US$131 million) to R1,430 million (US$147 million). This was mainly
due to increased capital expenditure of R347 million (US$34 million) at Cerro
Corona as the project moved through commissioning into full production. In
Ghana, expenditure at Tarkwa increased by R86 million (US$7 million) mainly
on additions to the mining fleet. In Australia, at Agnew, capital
expenditure increased by R22 million (A$2 million) due to increased
development at the Waroonga underground complex and project costs to comply
with the cyanide code.
Capital expenditure at the Cerro Corona mine in Peru amounted to R515 million
(US$56 million) in the December quarter compared with R168 million (US$22
million) in the September quarter. Sustaining capital for the quarter
amounted to R144 million (US$18 million), while project capital amounted to
R371 million (US$38 million). Final project cost was in line with the
approved vote of US$545 million.
Net cash outflow from financing activities in the December quarter amounted
to R331 million (US$39 million). Loans received in the December quarter
amounted to R833 million (US$83 million), mainly for funding of capital
expenditure at Cerro Corona and refinancing of the South African loans.
Repayments of South African rand loans amounted to R1,173 million (US$123
million) in the December quarter compared with R693 million (US$90 million)
in the September quarter. 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 and due to funding of short term working capital needs.
Net cash outflow for the quarter was R895 million (US$92 million) compared
with a net cash outflow of R126 million (US$14 million) in the September
quarter. After accounting for a positive translation adjustment of R130
million (negative US$28 million), the cash balance at the end of December was
R1,054 million (US$109 million). The cash balance at the end of September
was R1,818 million (US$229 million).
Balance sheet (Investment and net debt)
Investments decreased from R4,861 million (US$613 million) at 30 September
2008 to R4,360 million (US$452 million) at 31 December 2008. This decrease
was mainly due to marked to market losses on the Gold Fields share portfolio.
These marked to market losses have been accounted for in equity.
Net debt (long-term loans plus current portion of long-term loans less cash
and deposits) has increased from R7,756 million (US$978 million) at 30
September 2008 to R9,354 million (US$970 million) at 31 December 2008. This
increase in total debt is as a result of translating the dollar debt at the
weaker rand and the increase in borrowings incurred to fund capital
expenditure at Cerro Corona and South Deep, and funding of working capital
needs mainly at Cerro Corona. The debt includes dollar borrowings of US$750
million, of which US$318 million is covered by a forward exchange contract,
which was translated at US$1 = R9.64 in the December quarter compared with
US$1 = R7.93 in the September quarter. R600 million (US$61 million) of
preference shares were redeemed during the December quarter.
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 three years.
Project 1M
Project 1M is a productivity initiative that aims to improve quality mining
volumes by increasing the face advance by an additional one metre to an
average of at least eight metres per month by the end of financial 2010.
This will be achieved through the following key improvement initiatives
focusing on:
- drilling and blasting practices;
- cleaning and sweeping practices;
- mining cycle and training.
The planned increase in face advance targets improved underground production,
which will reflect in improved labour efficiencies and unit mining costs.
Project 2M
Project 2M is a technology initiative aimed at mechanising all flat-end
development (i.e. development on the horizontal plane) at the long-life
shafts of Driefontein, Kloof and Beatrix by the end of 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, 30 per cent (year-to-date 28 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,
including supply chain.
The energy and utilities projects, comprising power, diesel and the related
consumption of air and water, targets savings of R130 million per annum at
current tariff levels by the end of 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 financial 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 R28 million
(year-to-date: R63 million), comprising R24 million (year-to-date: R58
million) on power and R4 million (year-to-date: R5 million) on diesel. The
average power consumed for the quarter was 3 per cent below the baseline of
561 Mega watt power. The average diesel consumption for the quarter was 11
per cent lower than the baseline of 2.1 million litres. The high diesel
saving in the quarter was mainly due to reduced consumption.
The management of work place absenteeism 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 the current 11 per cent. A target of 2 per cent in
each of financial 2009 and 2010 has been set. This is planned by way of a
series of aggressive initiatives to optimise time spent by employees in
training, induction and the engagement and health care assessment processes,
through the creation of a 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. The wellness programmes,
which aims 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-aways.
Unavailables (excluding annual leaves) have reduced from 13 per cent to 11
per cent quarter on quarter, largely due to a reduction in non-core training
at the operations and reduced incidences of industrial action.
The above-ground cost project aims to reduce surface 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 process and
more efficient management of stores through a rigorous application of
standards and norms. The impact of the global economic crisis effectively
stopped the rampant inflation experienced previously over various input
commodities, with decreases in copper, steel, fuel, explosives etc, despite
the weakening of the rand. The deflationary trend should continue or
constrain further increases over the next quarter.
During the quarter R59 million (year-to-date: R92 million) cost savings were
realised under this project as follows:
- Contracted capital and working cost benefits of around R27 million (year-
to-date: R35 million) from copper rise-and-fall price reductions and
negotiated price reductions on mainly steel, coal and chemicals;
- R16 million (year to date: R29 million) cost avoidance benefits were
achieved in various other areas such as steel products, transport and
support products;
- R16 million (year-to-date: R28 million) in benefits were achieved
through settlement discounts and efficiency related savings.
International operations
Integrated continuous improvement initiatives and strategic sourcing /
contract benefits achieved
Cost savings from contracted rise-and-fall mechanisms presented themselves
during the December quarter as anticipated and in addition, continuous
improvement cost optimization benefits were achieved across multiple
initiatives at all International operations. Consolidated total cost
benefits of around US$11 million were achieved for the International
operations for the quarter. Financial year 2009 year to date cumulative
benefits are now standing at approximately US$18 million.
Australia
quarter diesel rise-and-fall price reductions continued and resulted in cost
reductions for Australia of around A$2 million. In addition, around A$3
million total cost benefits were achieved through underground improvement
project initiatives, optimised water supply contracts at St Ives and toll
treatment of ore at Agnew. The St Ives open pit improvement project
commenced and continuous improvement opportunities have been identified.
Ghana
Diesel rise-and-fall price reductions in Ghana added around US$3 million
savings during the December quarter. In addition, around US$1 million
benefits were achieved in areas such as grinding media, general mining
consumables and sulphuric acid tendered cost savings, as well as rise-and-
fall savings from explosives and grinding ball price related decreases. The
explosives rise-and-fall reduction and benefits as a result of the completion
of the Tarkwa on-site explosives emulsion plant are expected to start flowing
through in the March quarter.
Peru
During the December quarter US$3 million of benefits were realised through
reduced shipping rates, improved crane rental rates, local lime supplier
development, reduction of mill ball prices and reduction of some on-site
contractor services. Due to the legislated diesel practices in Peru, fuel
prices remained consistent quarter on quarter.
South African operations
Royalty bill
The Mineral and Petroleum Resources Royalty Act. was published in the
Government Gazette No. 31635 of 24 November 2008. The Act comes into
operation on 1 May 2009 and applies in respect of gold and other minerals
sold on or after that date.
The Royalty in respect of refined mineral resources is calculated by
multiplying the gross sales by the percentage determined in accordance with a
formula. The formula for refined minerals is = 0.5 plus (earnings before
interest and taxes) divided by (gross sales multiplied by 12,5) calculated as
a percentage. A cap of 5 per cent has also been introduced on refined
minerals.
Driefontein
December
September
2008
2008
Gold produced - kg 6,063
6,428
- 000`ozs 194.9
206.7
Yield - underground - g/t 7.4
8.1
- combined - g/t 3.8
4.2
Total cash costs - R/kg 137,886
130,149
- US$/oz 437
523
Notional cash expenditure - R/kg 186,459
169,306
- US$/oz 591
680
Gold production decreased by 6 per cent from 6,428 kilograms (206,700 ounces)
in the September quarter to 6,063 kilograms (194,900 ounces) in the December
quarter. This was 7 per cent below market guidance of 6,500 kilograms. The
decrease in production was attributable to two seismic events. The first an
event of 3.1 magnitude at 1 shaft on 2 October 2008 and the second an event
of 2.4 magnitude at 5 shaft on 15 October 2008. The second event resulted in
two fatalities. The resultant section 54 stoppage issued by The Department
of Minerals and Energy and the consequent decision to exit various high grade
areas at 5 shaft following the fatalities, contributed to a decline in grade
at this shaft of 1.3 grams per ton or approximately 550 kilograms. The
seismic event at 5 shaft caused a loss of relatively high grade ore which was
replaced with low grade ore. The seismic event at 1 shaft damaged footwall
development on 36 level and this affected both volume and grade causing a
loss of approximately 185 kilograms of gold.
As a result of these events, underground yield decreased from 8.1 grams per
ton to 7.4 grams per ton. This was partly offset by an increase in
underground tonnage from 724,000 tons in the September quarter to 751,000
tons in the December quarter due to the backlog secondary support programme
during the quarter having less impact on stoping, tramming and hoisting than
in the previous quarter. Surface tonnage increased from 812,000 tons to
857,000 tons, offset by the yield which reduced from 0.7 grams per ton to 0.6
grams per ton mainly due to the mix of surface sources.
Main development decreased by 9 per cent for the quarter and on-reef
development decreased by 24 per cent, mainly as a result of a significant
number of development crews being utilized for the full quarter to assist
with the backlog secondary support programme. Similar to September quarter,
most of the on-reef development for the quarter was done in prospecting areas
at the lower grade 8 shaft due to other development crews redeployed to
secondary support. The average development value increased to 841 cm.g/t in
the December quarter compared with 833 cm.g/t in the September quarter.
These development values are not representative of Driefontein as development
was done mainly at the lower grade 8 shaft.
Operating costs decreased from R881 million (US$114 million) to R877 million
(US$86 million). The decrease in operating cost is mainly attributable to a
reduction in electricity costs due to the lower summer tariff rates partly
offset by an increase in overtime due to additional voluntary production
shifts worked. Total cash cost increased 6 per cent in rand terms from
R130,149 per kilogram to R137,886 per kilogram and reduced 17 per cent in US
dollar terms, from US$523 per ounce to US$437 per ounce.
Operating profit increased from R509 million (US$66 million) in the September
quarter to R662 million (US$68 million) in the December quarter as a result
of the higher rand gold price received.
Capital expenditure increased from R208 million (US$27 million) to R254
million (US$26 million), in line with the forecast. The increase was mainly
due to increased expenditure on capitalised off-reef development (R24
million), high and low density accommodation upgrades (R13 million) and rail
track upgrades (R8 million).
Notional cash expenditure increased from R169,306 per kilogram (US$680 per
ounce) to R186,459 per kilogram (US$591 per ounce) mainly due to the decrease
in gold output and increased capital expenditure.
The forecast for the March quarter is as follows:
Gold produced - 6,900 kilogram (221,800 ounces)
Total cash cost* - R120,000 per kilogram (US$375 per ounce)
Capital expenditure* - R292 million (US$29 million)
Notional cash expenditure* - R167,000 per kilogram (US$520 per ounce)
* Based on an exchange rate of US$1 = R10.00.
The planned increase in gold production is mainly due to improved volumes
from 1 shaft, 4 shaft and 5 shaft, as well as improved grades from 5 shaft
and surface material and despite the traditional Christmas break. Old gold
recovery is expected to continue building up at 6 shaft and 10 shaft, and
there may be a possibility of some recovery at 7 shaft. Total cash cost is
expected to decrease due to the anticipated higher production. The increased
capital expenditure is due to the water plant project, housing upgrades, ORD
and other sustaining projects.
Kloof
December September
2008 2008
Gold produced - kg 4,717 4,871
- 000`ozs 151.7 156.6
Yield - underground - g/t 7.5 7.7
- combined - g/t 6.1 5.0
Total cash costs - R/kg 156,689 153,747
- US$/oz 496 618
Notional cash expenditure - R/kg 216,981 210,142
- US$/oz 687 844
Gold production decreased by 3 per cent from 4,871 kilograms (156,600 ounces)
in the September quarter to 4,717 kilograms (151,700 ounces) in the December
quarter. This is 12 per cent higher than the market guidance given for the
December quarter largely due to higher than planned grades. The quarter on
quarter decrease in production of 154 kilograms was as a result of the
planned decrease in toll mining of surface waste at South Deep due to
priority given to their surface clean-up and down time on ball mills.
Despite the continued impact of the Main shaft rehabilitation programme, a
section 54 four-day mine-wide work stoppage resulting from a fatal at 8 shaft
and a fire at 7 shaft which started in the previous quarter, underground
tonnage increased from 603,000 tons to 614,000 tons. The increase in
underground tonnage was offset by a decrease in yield from 7.7 grams per ton
to 7.5 grams per ton.
Total main development decreased by 13 per cent for the quarter while on-reef
development was similar to the previous quarter. Off-reef development was
lower as a result of the logistical constraints due to the Main shaft
rehabilitation programme. The average development value increased by 20 per
cent to 1,907cm.g/t in the December quarter.
Operating costs decreased by 2 per cent from R785 million (US$102 million) in
the September quarter to R773 million (US$76 million) in the December
quarter. The decrease in operating costs is mainly attributable to a
reduction in electricity costs due to the lower summer tariffs. This was
partially offset by a decrease in the ORD drop-out to capital which was lower
than the September quarter as a result of the planned decrease in off-reef
development during the Main shaft rehabilitation programme. As a consequence
of the lower gold output total cash cost increased 2 per cent from R153,747
per kilogram to R156,689 per kilogram.
Operating profit increased from R274 million (US$35 million) in the September
quarter to R426 million (US$44 million) in the December quarter mainly due to
the higher gold price.
Capital expenditure at R251 million (US$25 million) increased by 5 per cent
compared with the previous quarter`s expenditure of R238 million (US$31
million). This increase was mainly due to the Main shaft rehabilitation
programme cost. The Main shaft rehabilitation programme work was completed
during December 2008 as planned at a total cost of R39 million (US$4
million).
Notional cash expenditure increased by 3 per cent from R210,142 per kilogram
to R216,981 per kilogram due to the lower production and increased capital
expenditure.
The forecast for the March quarter is as follows:
- Gold produced - 6,100 kilogram (196,100 ounces)
- Total cash cost* - R120,000 per kilogram (US$375 per ounce)
- Capital expenditure* - R275 million (US$27 million)
- Notional cash expenditure* - R170,000 per kilogram (US$530 per ounce)
* Based on an exchange rate of US$1 = R10.00.
Gold production for the March quarter is forecast to increase by about 30 per
cent compared with the December quarter following the completion of the Main
shaft rehabilitation programme. This increase is despite the traditional
slow start up after the Christmas break that affects all of the South African
operations. Total cash cost per ounce should decrease in the March quarter
as a result of the higher gold production. Capital expenditure is planned to
increase to around R275 million (US$27 million) largely due to the increase
in ORD drop out, which is expected to return to normal levels following the
completion of the Main shaft rehabilitation programme.
Beatrix
December September
2008 2008
Gold produced - kg 3,320 3,156
- 000`ozs 106.7 101.5
Yield - g/t 4.2 4.0
Total cash costs - R/kg 144,759 150,982
- US$/oz 459 607
Notional cash expenditure - R/kg 195,723 206,622
- US$/oz 620 830
Gold production at Beatrix increased by 5 per cent from 3,156 kilograms
(101,500 ounces) in the September quarter to 3,320 kilograms (106,700 ounces)
in the December quarter. This is lower than the guidance of 3,450 kilograms
(111,000 ounces) due to reduced mining volumes, flooding of the winder room
at 4 shaft following excessive rain and increased ore accumulations
underground resulting in a deterioration in the mine call factor quarter on
quarter. Tons milled increased from 790,000 tons to 798,000 tons and the
yield increased from 4.0 grams per ton in the September quarter to 4.2 grams
per ton for the December quarter, due to an improved mining mix. The overall
tonnage increase is as a result of continued mine clean-up and a slightly
higher stope width.
Development volumes showed a 13 per cent quarter on quarter reduction due to
a focus on safety by cleaning up haulages and removing mud accumulations,
with total main development decreasing to 8,054 metres and main on-reef
development increasing by 189 metres to 1,808 metres. The main on-reef
development values were 34 per cent higher than the previous quarter at 1,104
cm.g/t.
Operating costs increased marginally from R499 million (US$60 million) in the
previous quarter to R503 million (US$50 million) in the current quarter. The
increase in costs was mainly due to production incentives and overtime
worked, offset by a reduction in electricity due to the lower summer tariff
rates. Total cash cost decreased by 4 per cent from R150,982 per kilogram in
the September quarter to R144,759 per kilogram in the December quarter.
Operating profit increased by 90 per cent from R184 million (US$24 million)
in the September quarter to R349 million (US$37 million) in the December
quarter mainly due to the increased production and the higher rand gold price
received.
Capital expenditure decreased by 5 per cent, from R154 million (US$20
million) in the September quarter to R147 million (US$14 million) in the
December quarter mainly due to lower expenditure on the 3 shaft project and
lower ORD.
Notional cash expenditure decreased from R206,622 per kilogram (US$830 per
ounce) to R195,723 per kilogram (US$620 per ounce) mainly due to the
increased production.
The forecast for the March quarter is as follows:
- Gold produced - 3,300 kilogram (106,100 ounces)
- Total cash cost* - R147,000 per kilogram (US$460 per ounce)
- Capital expenditure* - R150 million (US$15 million)
- Notional cash expenditure* - R199,000 per kilogram (US$620 per ounce)
* Based on an exchange rate of US$1 = R10.00.
Despite the effects of the Christmas break which fully impacts the March
quarter, gold production and costs for the March quarter are forecast to be
similar to the December quarter.
International operations
Ghana
Tarkwa
December
September
2008
2008
Gold produced - 000`ozs 139.3
156.3
Yield - heap leach - g/t 0.6
0.7
- CIL plant - g/t 1.4
1.6
- combined - g/t 0.8
0.9
Total cash cost - US$/oz 563
548
Notional cash expenditure - US$/oz 1,078
1,029
Gold production decreased by 11 per cent from 156,300 ounces to 139,300
ounces in the December quarter. The guidance for the December quarter was
150,000 ounces due to the tie-in of the CIL expansion. The shortfall between
actual performance and guidance is mainly attributable to a GIP build-up in
the North and South heap leach pads as relatively high grade ore was stacked
close to quarter end. The CIL expansion was successfully commissioned at the
end of the quarter and achieved name plate capacity (36,000 tons per day
which equates to 1 million tons per month) on 23 December 2008.
Total tons mined, including capital stripping, increased from 30.9 million
tons to 34.3 million tons due to the need to strip sufficient waste for ore
feed to the CIL expansion. Ore mined increased from 5.5 million tons in the
September quarter to 5.7 million tons in the December quarter. The head
grade of 1.18 grams per ton was a reduction from last quarter`s 1.21 grams
per ton as per the mine schedule. The strip ratio increased from 4.58 in the
September quarter to 5.01 in the December quarter which is in line with the
life of mine strip ratio.
Total feed to the heap leach sections decreased to 4.01 million tons in the
December quarter compared with 4.15 million tons for the September quarter.
Heap leach yield for the quarter decreased to 0.63 grams per ton compared
with 0.66 grams per ton due to the GIP build-up at the North and South heap
leach as a result of the high grade stacking at quarter end. The heap leach
facilities produced 81,000 ounces, 8 per cent lower than the 88,000 ounces
produced in the September quarter. This shortfall is planned to be released
from GIP in the March quarter.
The total feed to the CIL plant was 1.37 million tons compared with 1.35
million tons in the September quarter. CIL yield was 1.4 grams per ton
against 1.6 grams per ton for the September quarter. The CIL plant produced
58,000 ounces in the December quarter compared with 68,200 ounces in the
September quarter, mainly due to normal GIP build-up which is in line with
the commissioning of a plant of this size.
Operating costs, including GIP movements, was US$8 million lower than for the
September quarter at US$78 million (R775 million). The lower operating cost
is mainly due to the impact of lower power costs and fuel prices.
Operating profit at US$34 million (R351 million) in the December quarter was
lower than the US$50 million (R388 million) in the September quarter as a
result of lower production and lower gold price achieved.
Capital expenditure decreased from US$72 million (R556 million) to US$65
million (R642 million) for the quarter, with expenditure on the CIL expansion
(US$33 million), mining equipment (US$11 million) and pre-stripping at the
Teberebie cutback (US$17 million) being the major capital expenditure items
for the quarter. Major capital expenditure for the CIL expansion is now
completed at a cost of US$173 million. The overrun from the original
estimate of US$168 million is primarily due to the extension of time.
Notional cash expenditure (NCE) for the quarter was US$1,078 per ounce
against the previous quarter`s US$1,029 per ounce, reflecting the planned
higher capital spend on the CIL expansion in the December quarter.
Forecast for the March quarter is as follows:
- Gold produced - 190,000 ounces
- Total cash cost - US$485 per ounce
- Capital expenditure - US$35 million
- Notional Cash Expenditure - US$680 per ounce
The forecast increase in gold production is attributable to production from
the newly commissioned CIL plant expansion and the release of heap leach GIP.
Unit cash cost is expected to decrease due to the higher gold production. NCE
is forecasted to decrease due to the reduction in capital expenditure and
higher production levels.
Damang
December September
2008 2008
Gold produced - 000`ozs 50.4 44.0
Yield - g/t 1.3 1.2
Total cash cost - US$/oz 622 790
Notional cash expenditure - US$/oz 753 895
Gold production increased 15 per cent from 44,000 ounces in the September
quarter to 50,400 ounces in the December quarter which was in line with
guidance. This was mainly due to an increase in yield from 1.2 grams per ton
to 1.3 grams per ton and improved plant availability, which in turn increased
the mill throughput from 1.1 million tons to 1.2 million tons.
Total tons mined, including capital stripping reduced from 6.2 million tons
in the September quarter to 4.6 million tons in the December quarter. Mining
returned to historical levels as the crushed ore stockpile build-up was
completed in the September quarter. The crushed ore stockpile has been
deliberately increased due to the impending rebuild of the primary crusher.
The ore mined also decreased from 1.13 million tons to 1.12 million tons.
The strip ratio decreased from 4.5 to 3.2 in the December quarter due to the
major stripping being completed in the DPCB in the September quarter.
Operating costs, including gold-in-process movements decreased from US$35
million (R270 million) to US$32 million (R315 million). The decrease in
costs was mainly attributable to the lower tons mined together with a
decrease in diesel and power costs. Total cash cost decreased from US$790
per ounce to US$622 per ounce, reflecting the increase in production.
Operating profit for the December quarter amounted to US$9 million (R83
million) compared with the US$3 million (R26 million) achieved in the
September quarter.
Capital expenditure at US$3 million (R34 million) was slightly lower than the
US$4 million (R30 million) spent in the September quarter, with the majority
of this expenditure on the Rex pit development and exploration.
Notional cash expenditure for the quarter was lower at US$753 per ounce
compared with the previous quarter`s US$895 per ounce mainly as a result of
the decrease in costs and higher production. The primary crusher is planned
for rebuild in the quarter dependant on critical parts arrival. This will not
impact the planned production. A mobile crusher will be commissioned in the
middle of the March quarter to provide mill blending flexibility with the
crushing of higher grade mill.
Forecast for the March quarter is as follows:
Gold produced - 52,000 ounces
Total cash cost - US$610 per ounce
Capital expenditure - US$4 million
Notional cash expenditure - US$720 per ounce.
Gold production is expected to increase in the March quarter due to minor
mining and blending adjustments.
Peru
Cerro Corona
December
September
2008
2008
Gold produced - 000`oz 26.1
6.8
Copper produced - tons 6,200
750
Total equivalent gold produced - 000` eq oz 61.5
12.4
Total equivalent gold sold - 000` eq oz 65.5
-
Yield - gold - g/t 0.8
0.5
- copper - % 0.59
0.17
- combined - g/t 1.6
0.9
Total cash cost - US$/ eq oz 355
-
Notional cash expenditure - US$/ eq oz 1,201
2,289
* Represents payable metal content only.
Production exceeded guidance and the Cerro Corona operations reached design
capacity.
Production of 61,500 equivalent ounces was recorded during the December
quarter, compared with 12,400 equivalent ounces in the September quarter.
The September quarter included one month`s production compared with a full
quarter`s production in the December quarter. During the December quarter
concentrate with payable content of 32,100 ounces of gold was sold at an
average gold price of US$817 per ounce and 6,500 tons of copper at an average
copper price of US$2,113 per ton, net of treatment and refining charges.
The table below demonstrates the production sensitivity impact of the copper
and gold price relationship on equivalent ounce calculations.
Actual
production
Guidance at determined
start of Sept at guidance
quarter prices
Gold price - US$/oz 800 800
Copper price - US$/t 5,000 5,000
Gold produced - oz 25,400 26,100
Copper produced - tons 4,600 6,200
Copper equivalent as gold - oz 28,700 38,840
Total gold equivalent - eq oz 54,100 64,940
March
Actual production quarter
and actual prices forecast
Gold price - US$/oz 790 850
Copper price - US$/t 4,501 3,200
Gold produced - oz 26,100 34,560
Copper produced - tons 6,200 7,300
Copper equivalent as gold - oz 35,400 27,470
Total gold equivalent - eq oz 61,500 62,030
Gold equivalent = gold produced (ounces) plus {(copper produced (tons)
multiplied by copper price (US$ per ton)) divided by gold price (US$ per
ounce)
Ore processed increased from 441,000 tons in the September quarter to
1,199,000 tons in the December quarter, with concentrate production at 35,000
dry metric tons in the December quarter compared with 6,000 dry metric tons
in the September quarter. Gold yield for the quarter was 0.80 grams per ton
and copper yield was 0.59 per cent.
Total tons mined decreased from 1.89 million tons in the September quarter to
1.74 million tons during the December quarter. Ore mined increased from 1.08
million tons to 1.27 million tons. The overall strip ratio for the December
quarter was 0.3 compared with the life of mine strip ratio of 0.66.
Operating costs accounted for the first time this quarter, amounted to US$26
million (R222 million). Cash cost for the quarter was reported at US$355 per
equivalent ounce sold.
Operating profit for the quarter amounted to US$15 million (R131 million).
Capital expenditure increased from US$22 million (R168 million) in the
September quarter to US$56 million (R515 million) in the December quarter,
due to the completion of the project (US$38 million) and construction work on
the Las Aguilas Tailings Management facility (US$15 million). Project
expenditure was in line with the vote of US$545 million.
Notional cash expenditure for the December quarter at US$1,201 per equivalent
ounce compares with US$2,289 per equivalent ounce in the September quarter.
The quarter on quarter reduction reflects the effect of the December quarter
ongoing build-up to commercial levels of production.
The forecast for the March 2009 quarter is as follows:
- Metals (gold and copper) produced - 62,000 equivalent ounces*
- Gold produced - 34,600 ounces
- Copper produced - 7,300 tons
- Total cash cost - US$450 per equivalent ounce
- Capital expenditure - US$20 million
- Notional cash expenditure - US$800 per equivalent ounce
* Equivalent ounces are based on a gold price of US$850 per ounce and
copper price of US$3,200 per ton. At December quarter market guidance prices
of US$800 per ounce for gold and US$5,000 per ton for copper, the equivalent
ounces for the March quarter would be 80,000 equivalent ounces.
The life of mine sustaining capital is expected to average around US$10
million per quarter, which level is to be achieved by 2010. This will reduce
the NCE to about US$625 per ounce assuming the same gold and copper of the
March quarter forecast. The increase in metals produced reflects the mine
operating at design capacity for the full quarter. The reduction in notional
cash expenditure for the quarter is due to higher equivalent ounces being
produced and lower capital expenditure.
Australia
St Ives
December
September
2008
2008
Gold produced - 000`ozs 108.7
101.2
Yield - heap leach - g/t 0.5
0.4
- milling - g/t 2.5
2.5
- combined - g/t 1.8
1.7
Total cash cost - A$/oz 807
786
- US$/oz 551
708
Notional cash expenditure - A$/oz 996
1,095
- US$/oz 679
986
Gold production increased by 7 per cent from 101,200 ounces in the September
quarter to 108,700 ounces in the December quarter which compares well with
the guidance of 110,000 ounces.
Gold produced from the Lefroy mill increased by 8 per cent from 92,200 ounces
to 99,700 ounces. This increase was due to a 5 per cent increase in tons
milled to 1.23 million tons as the head grade was consistent with the
September quarter at 2.7 grams per ton.
Gold produced from heap leach was consistent with the previous quarter at
9,000 ounces. Tons treated from the heap leach decreased from 646,000 tons
to 610,000 tons, while recoveries improved from 53 per cent to 60 per cent.
Head grade remained constant at 0.8 grams per ton.
At the open pit operations 1.3 million tons of ore were mined for the
quarter, marginally down on the 1.4 million tons of ore mined in the
September quarter. Grade decreased from 1.7 grams per ton to 1.2 grams per
ton. The decrease in grade was due to the completion of mining at the higher
grade North Revenge and Cave Rocks open pits. The average strip ratio
including capital waste was 5.8 in the December quarter, compared with 4.7 in
the September quarter.
At the underground operations 324,000 tons of ore was mined at 5.4 grams per
ton for the quarter, compared with 248,000 tons of ore mined at 4.7 grams per
ton in the September quarter. The increase in volumes was due to a full
quarter of production at the higher grade Belleisle, which achieved full
production levels in the previous quarter, and an increase from Cave Rocks
which achieved full production during December.
Operating costs, including gold-in-process movements, increased from A$81
million (R565 million) in the September quarter to A$90 million (R601
million) in the December quarter. The increase was due to a A$4 million
increase in royalty costs due to the increased ounces produced and a stronger
Australian dollar gold price. In addition underground mining costs which
increased by A$6 million due to increased volumes at Belleisle and Cave Rocks
which reached full production. Total cash cost increased from A$786 per
ounce (US$708 per ounce) to A$807 per ounce (US$551 per ounce). The increase
in cash cost is directly attributable to the impact of the Australian dollar
gold price on royalties.
Operating profit increased from A$19 million (R133 million) to A$40 million
(R268 million) due to the increased ounces produced and the stronger
Australian dollar gold price.
Capital expenditure decreased from A$30 million (R212 million) in the
September quarter to A$24 million (R162 million) in the December quarter.
Mine development of A$21 million (R2 million) included continued development
at Cave Rocks and the Argo mine and waste stripping at the future Agamemnon
South and Grinder pits. The decrease in capital was primarily due to reduced
capital development at Belleisle.
Notional cash expenditure decreased from A$1,095 (US$896) per ounce to A$996
(US$679) per ounce due to the increase in ounces produced and reduction in
capital expenditure.
The forecast for the March quarter is as follows:
- Gold produced - 113,000 ounces
- Total cash cost* - A$750 (US$500) per ounce
- Capital expenditure* - A$30 million (US$20 million)
- Notional cash expenditure* - A$1,030 (US$690) per ounce
* Based on A$1=US$0.67
The gold production increase is in line with the increase in the planned
production from the new underground mines at Cave Rocks and Belleisle.
Agnew
December September
2008 2008
Gold produced - 000`ozs 45.0 52.2
Yield - g/t 5.5 5.3
Total cash cost - A$/oz 543 548
- US$/oz 371 494
Notional cash expenditure - A$/oz 809 653
- US$/oz 552 588
Gold production was in line with guidance, but decreased by 14 per cent from
52,200 ounces in the September quarter to 45,000 ounces in the December
quarter. The reduction in tons processed from 308,000 in the September
quarter to 253,000 in the December quarter is due to depletion of low grade
stockpiles, specifically the end of the Songvang material. The mine
undertook a toll treatment campaign of 67,000 tons in the quarter which
offset the completion of the low grade stockpiles somewhat. There are
sufficient other low grade stockpiles to maintain a steady mill feed of
90,000 tons per month for the life of the current reserve.
Ore mined from underground remained relatively stable with only a slight
reduction from 173,000 tons in the September quarter to 169,000 tons in the
December quarter.
Kim Lode production increased 30 per cent from 98,000 tons in the September
quarter at a grade of 11.3 grams per ton to 127,000 tons in the December
quarter at a grade of 9.5 grams per ton. The decrease in grade is a function
of the mining sequence as the grade varies along strike. Main Lode
production decreased 45 per cent from 70,000 tons in the September quarter at
a grade of 4.0 grams per ton to 38,000 tons at a grade of 4.8 grams per ton.
The decrease was due to the reduced equipment availability. Although
equipment availability issues were experienced in the middle of the quarter,
this has been resolved. In the March quarter ore mined from underground is
expected to increase due to productivity improvements.
Operating costs, including gold-in-process, decreased 17 per cent from A$29
million (R203 million) in the September quarter to A$25 million (R167
million) in the December quarter. The decrease in operating cost was the
result of lower underground mining volumes, toll treatment offsets and
decreased gold-in-process movements due to the depletion of Songvang surface
stockpiles. Total cash cost at A$543 per ounce (US$371 per ounce) in the
December quarter was marginally lower than the A$548 per ounce (US$494 per
ounce) in the September quarter.
Operating profit increased from A$23 million (R158 million) in the September
quarter to A$30 million (R199 million) in the December quarter. This was due
primarily to the increased revenue from a higher Australian dollar gold price
and lower operating costs.
Capital expenditure increased from A$7 million (R49 million) in the September
quarter to A$12 million (R78 million) in the December quarter. The higher
expenditure included a planned increase in underground capital development
and cyanide code compliance project work.
Notional cash expenditure increased from A$653 per ounce (US$588 per ounce)
in the September quarter to A$809 per ounce (US$552 per ounce) in the
December quarter. This was due to the increased capital expenditure and the
decrease in gold production (lower underground production and the impact of
the toll treatment campaign).
The forecast for the March quarter is as follows:
Gold produced - 50,000 ounces
Total cash cost* - A$530 per ounce (US$355)
Capital expenditure - A$14 million (US$9 million)
Notional cash expenditure - A$800 per ounce (US$540)
* Based on A$1=US$0.67
Gold production for the March quarter is expected to increase due to higher
levels of production from Main Lode. However, Main Lode is lower grade than
the Kim Lode and therefore head grade is expected to decrease in the quarter
which will realise only minor reductions in cash costs. Capital expenditure
includes increased underground capital development at Kim Lode and Main Lode.
Capital and development projects
South Deep project
December September
2008 2008
Gold produced - kg 1,471 849
- 000`ozs 47.3 27.3
Yield - underground - g/t 6.8 5.1
- combined - g/t 5.2 4.4
Total cash cost - R/kg 179,130 339,694
- US$/oz 567 1,365
Notional cash expenditure - R/kg 362,135 579,270
- US$/oz 1,147 2,328
Gold production at South Deep increased by 73 per cent from 849 kilograms
(27,300 ounces) in the September quarter to 1,471 kilograms (47,300 ounces)
in the December quarter. This is slightly above the guidance of 1,460
kilograms. This increase was due to an increase in underground mining
volumes and grade. Underground ore tons increased from 157,000 tons to
205,000 tons in line with the objective of gradually increasing production.
The increase in tonnage from the high grade 95 2 and 3 West trackless areas
had a positive impact on the underground yield.
Development increased by 69 per cent for the December quarter from 1,289
metres to 2,180 metres. The new mine capital development in phase 1, sub 95
level, increased for the quarter from 69 metres to 582 metres. Development
in the current mine areas above 95 level increased from 1,220 metres to 1,598
metres.
Operating costs decreased by 9 per cent from R303 million (US$39 million) in
the September quarter to R277 million (US$27 million) in the December
quarter. This was mainly due to the reduced labour costs emanating from the
restructuring that commenced in August 2008 and was substantially completed
by the end of September 2008. The restructuring resulted in 2,047 employees
taking up voluntary separation packages. Reduced electricity costs due to
the lower summer tariff rates also contributed to this decrease. Total cash
cost decreased by 47 per cent from R339,694 per kilogram (US$1,365 per ounce)
in the September quarter to R179,130 per kilogram (US$567 per ounce) in the
December quarter as a result of the increased gold production and decreased
costs.
Operating profit of R98 million (US$13 million) was realised in the December
quarter compared with the September quarter`s operating loss of R119 million
(US$15 million) due to the higher production, the higher rand gold price and
the lower cost structure.
Capital expenditure increased from R189 million (US$24 million) in the
September quarter to R256 million (US$26 million) in the December quarter in
line with the planned project build-up. The increased expenditure was mainly
on development, equipment and the residential housing project. Approximately
40 per cent of this capital expenditure was funded internally.
Notional cash expenditure decreased by 37 per cent from R579,270 per kilogram
(US$2,328 per ounce) to R362,135 per kilogram (US$1,147 per ounce).
The forecast for the March quarter is as follows:
- Gold produced - 1,600 kilogram (51,400 ounces)
- Total cash cost* - R172,000 per kilogram (US$535 per ounce)
- Capital expenditure* - R280 million (US$28 million)
- Notional cash expenditure* - R356,000 per kilogram (US$1,100 per ounce)
* Based on an exchange rate of US$1 = R10.00
Total cash cost will decrease in the March quarter as a result of the higher
gold production, while notional cash expenditure should be similar as the
increase in production is likely to be offset by the planned increase in
capital expenditure. This increase is mainly due to the purchase of
additional equipment.
South Deep will continue to focus on delivering the build-up to the planned
development metres, completion of the Twin shaft infrastructure,
implementation of the mechanized mining method for the de-stress cut in the
massives mining projects and delivery of increased production.
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 of gold and sulphur. Significant progress has been made
over the past quarter with respect to the different pre-feasibility and
feasibility activities.
The estimated in-situ historical tailings opportunity is estimated at
approximately 402 million tons at 65 grams per ton uranium content, producing
58 million pounds of uranium and 4.2 million ounces of gold. The in-situ
underground resource is estimated at 205 million tons at a grade of 95 grams
per ton uranium content producing 41 million pounds of uranium, post mine
call factor and post mining dilution.
The drilling of the historical tailings facilities on the West Wits
operations is nearing completion, with drilling on nine of the thirteen
tailings storage facilities (TSF`s) already complete. A further thirty holes
will be required to complete three of the remaining TSF`s. Drilling on the
last remaining TSF has commenced with three drill rigs currently being
allocated to the Driefontein no. 4 TSF. A total of 962 holes have been
completed to date with approximately 206 holes remaining. Approximately
13,800 samples have been submitted to three laboratories for gold, uranium
and sulphur analysis. A SAMREC compliant resource should be completed by
June 2009.
Engineering and Projects Company (EPC) has been appointed to conduct a
feasibility study on the run-of-mine Driefontein tailings treatment operation
(DTO), as well as a pre-feasibility study on the historical treatment
tailings operation (HTO) process. Proposed process flow diagrams have been
developed for both projects. A number of trade-off studies are still in
progress with respect to the HTO process, and to determine the most suitable
and financially viable option for this project. A pre-feasibility study on
the DTO was completed during 2008. The feasibility study for the DTO is at
an advanced stage and the final report should be available by the middle of
April 2009. Laboratory and pilot plant test work, in order to confirm the
respective plant process flow diagrams and design criteria, is ongoing. The
test programme for the DTO process has been completed and all information for
design purposes has been published.
Metago Environmental Engineers were appointed to complete a feasibility study
on the new TSF required for the project. The preliminary design to
accommodate 750 million tons has commenced and should be completed by June
2009. The environmental impact assessment and permitting process has also
commenced.
The project is well positioned to deliver on the required outcomes of the
respective project activities by the end June 2009. The outcomes from the
respective projects will be consolidated and evaluated during the next two
quarters, with the primary objective to obtain approval to elevate the
project status to a feasibility study to be concluded by the end of calendar
2009. The implementation strategy for the uranium project will be reviewed
and optimised as part of this process, in order to deliver maximum
shareholder value through the exploitation and beneficiation of both the
underground and surface gold, uranium and sulphur resources. Gold Fields
expects to implement the Uranium project as a stand alone treatment
operation.
Quarter ended 31 December 2008 compared with quarter ended 31 December 2007
Group attributable gold production decreased by 14 per cent from 960,000
ounces for the quarter ended December 2007 to 839,000 ounces produced in the
December 2008 quarter. These production results, and the results below,
exclude the results of Choco 10 which was sold during financial 2008, as
these results are accounted for under discontinued operations.
At the South African operations gold production decreased from 657,000 ounces
to 501,000 ounces. Driefontein`s gold production decreased from 239,600
ounces to 195,000 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 December 2008
quarter.
Kloof`s gold production decreased from 231,000 ounces to 152,000 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 118,900 ounces to 107,000 ounces due to reduced mining volumes
and a lower mine call factor. South Deep`s gold production decreased from
67,600 ounces to 47,000 ounces due to the termination of conventional VCR
mining.
At the international operations total managed gold production increased from
362,000 ounces in December 2007 to 405,000 ounces in December 2008. This
included 62,000 equivalent ounces from Cerro Corona from its first full
quarter of production. In Ghana, Damang`s gold production increased 14 per
cent to 50,400 ounces due to an increase in mining volumes and grade. Tarkwa
was 12 per cent down at 139,300 ounces mainly due to lower grades. In
Australia, St Ives decreased marginally to 108,700 ounces. The decrease at
St Ives was due to a decrease in open pit and heap leach production.
Production at Agnew decreased by 8 per cent to 45,000 ounces due to the
depletion of Songvang ore and reduced volumes from Main Lode.
Revenue increased by 30 per cent in rand terms (decreased 10 per cent in US
dollar terms) from R5,430 million (US$801 million) to R7,074 million (US$720
million). The 47 per cent higher average gold price of R250,058 per kilogram
(US$792 per ounce) compared with R170,488 per kilogram (US$784 per ounce)
achieved in the December 2007 quarter, more than offset the lower production.
The US dollar weakened from US$1 = R6.76 to US$1 = R9.82, or 45 per cent,
while the rand/Australian dollar weakened from A$1 = R6.03 to R6.70, or 11
per cent, quarter on quarter.
Operating costs, including gold-in-process movements, increased from R3,392
million to R4,521 million, or 33 per cent in rand terms, but decreased in
dollar terms from US$501 million to US$451 million. The increase in costs in
rand terms was mainly due to the inclusion of Cerro Corona for the first time
this quarter (R222 million) and an exchange difference due to the 45 per cent
weaker rand (R548 million). Added to this were 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 cost for the
Group in rand terms, increased from R101,532 per kilogram (US$467 per ounce)
to R156,634 per kilogram (US$496 per ounce) due to the above factors.
At the South African operations operating costs increased by 12 per cent from
R2,174 million (US$321 million) in the December 2007 quarter to R2,430
million (US$239 million) in the December 2008 quarter. 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 R101,170 per kilogram to R148,944 per kilogram
(US$465 per ounce to US$472 per ounce) as a result of the above cost
increases and the lower production due to the rehabilitation programmes.
At the international operations, net operating cost increased from R1,219
million (US$180 million) in the December 2007 quarter to R2,091 million
(US$212 million) in the December 2008 quarter. R222 million (US$26 million)
was as a result of the inclusion of Cerro Corona, while R548 million was as a
result of exchange rate movements. 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 the inclusion of the 4 per cent net smelter
production royalty which was not applicable in the December 2007 quarter. At
Agnew, costs increased due to increased underground mining and increased
environmental costs. At the international operations unit cash costs
increased from US$470 per ounce to US$526 per ounce.
Operating profit increased from R2,037 million (US$300 million) to R2,566
million (US$268 million). After accounting for taxation, sundry costs and
exceptional items, net earnings amounted to R483 million (US$54 million),
compared with R1,938 million (US$281 million) in the December 2007 quarter.
Earnings in the December 2007 quarter included the sale of Essakane of R1.4
billion (US$201 million).
Earnings excluding gains and losses on foreign exchange, financial
instruments, exceptional items, loss of associates after taxation and
discontinued operations amounted to R542 million (US$60 million) this quarter
compared with R603 million (US$88 million) in the December 2007 quarter.
Exploration and corporate development
Gold Fields exploration team maintained a high level of activity across its
international exploration projects with 28 drill rigs (30 in Q1 F2009)
operating in eleven countries (Australia, Ghana, Peru, Mali, Chile, DRC,
Dominican Republic, China, USA, Indonesia and Kyrgyzstan). A total of
112,140 metres (105,288 metres in Q1 F2009) of drilling was completed with
encouraging results returned from a number of projects.
The team spent considerable time this quarter evaluating business development
opportunities that have come about as a result of lower commodity prices and
limited availability of credit.
Highlights this quarter include the conclusion of the Talas joint venture
agreement with Orsu Metals where we have started to receive significant
exploration encouragement, and, the start of work on three new projects:
Batangas joint venture in the Philippines, the Toodoggone joint venture in
Canada and the Tacna Project in Peru.
Advanced Exploration
Gold Fields and Orsu Metals Corporation (TSX: "OSU" and AIM: "OSU") signed a
joint venture agreement on the Talas Project, consisting of four exploration
licenses totaling 347 square kilometres in Kyrgyzstan, which grants Gold
Fields the right to earn-in up to a 70 per cent interest. An aggressive
drilling programme is underway and initial results are positive.
Hydrothermal alteration zoning with associated disseminated bornite is
analogous to high grade mineralisation present at analogous porphyry Cu-Au
deposits such as Cadia-Ridgeway and is early stage confirmation of the
proposed geological model. Gold Fields assumed operatorship of the Talas
Project on 1 January 2009, and the ongoing programme through the winter
months will comprise additional step-out drilling at Taldy Central and
initial drilling on other targets on the property.
Greenfields Exploration
At the 51 per cent owned Sankarani joint venture with partner Glencar Mining
plc (AIM: "GEX") in south-western Mali, exploration focused on the Bokoro
Main, Fingouana and Kabaya targets. At Kabaya, assay results from bed rock
sampling outlined three N-S corridors displaying gold-in-saprolite anomalism
with gold values ranging from 26ppb to 1.15 grams per ton. At Fingouana,
assays are pending for infill RAB drilling of a seven kilometre long
anomalous zone identified in early 2008.
At the Mt Carlton joint venture in northeast Queensland, Australia, Gold
Fields completed its initial earn-in commitment of A$5 million on eight
exploration tenements owned by Conquest Mining Limited (ASX: "CQT")
surrounding Conquest`s Silver Hill Au-Ag-Cu discovery. Exploration drilling
completed this quarter tested the Capsize, Ortiz, Strathmore and Boundary
North targets. Encouraging Cu, Au and Ag mineralisation was intersected at
Strathmore including one intercept with 32 metre at 0.25 per cent Cu. During
the wet season, project work will focus on field mapping and data compilation
to prioritise targets for the next round of drilling scheduled to commence in
March 2009.
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 initial drilling of
geophysical targets analogous to Newcrest`s nearby Cadia and Ridgeway
porphyry Cu-Mo-Au mines. Although no discovery intersections were
encountered the targeting process is working and drilling is indicating the
presence of large porphyry systems. Results received from Rose Hill drilling
intersected significant widths of Au, Cu and Mo mineralisation in magnetite
and K-feldspar-altered diorite.
A separate joint venture agreement was signed with Clancy on the Myall
Property in November 2008 and a detailed gravity survey and aircore drilling
commenced in December 2008. Encouraging disseminated bornite and
chalcopyrite was identified in early holes (assays are pending).
At the Sino Gold Alliance joint venture in southwestern China with Sino Gold
Mining Ltd (ASX: SGX" and HKSE: "1862"), the initial drill programme
concluded at the Jinshu (formerly Bengge) Project returned encouraging
results with narrow high-grade results within a wide low-grade envelope.
New Projects
New projects getting underway this quarter include the Batangas joint venture
with Mindoro Resources Limited (TSX "MIO.V") where Gold Fields may earn up to
a 75 per cent interest in a greenfields porphyry Cu-Au and epithermal
property in the Philippines, the Toodoggone joint venture with Cascadero
Copper Corp. (TSX "CCD.V") where Gold Fields can earn up to a 75 per cent
interest in a large porphyry Cu-Au and epithermal property in British
Columbia, Canada and the Tacna Project in Southern Peru where Gold Fields has
staked 25,385 hectares over several promising targets with potential to host
significant high sulphidation epithermal gold mineralisation.
Near Mine Exploration
At the St. Ives Mine in Western Australia, drilling at the Athena area
focused on resource conversion and extension. Up-dip RC drilling at the Hoff
zone intersected 11 metres at 30.1 grams per ton Au from 31 metres, and 8
metres at 6.0 grams per ton Au from 81 metres, confirming the interpreted
orientation and tenor, and opening up a potential strike extent of about 500
metres. Infill and extensional drilling continued at the Athena target.
Extensional RC drilling was completed at the Hamlet target, defining a
resource over 480 metres in strike and open in all directions.
At the Agnew Mine in Western Australia, four metres composite results from
Cinderella NE returned broad anomalous zones of mineralisation containing
narrower higher grade zones.
At the Damang Mine in Ghana, ongoing drilling has intersected mineralised
Kawere Sediment at Amoanda North, including two metres at 10.85 grams per ton
Au, an unexpected occurrence in this area. Drilling at the Tomento East
Hydrothermal target returned patchy results.
At the Cerro Corona Mine in Peru, the Consolidada de Hualgayoc 50:50 joint
venture with Buenaventura (NYSE: "BVN") has focused its efforts on
negotiations with the local communities for access to the Titan-Arabe zone
and other Cu-Au targets in the Hualgayoc District. Significant progress has
been made through a coordinated public consultation process and we expect to
gain authorisation for proposed drilling programmes during the March 2009
quarter. A planned airborne geophysical survey (magnetic and radiometrics)
was postponed until the June 2009 quarter.
Development Projects
At the Arctic Platinum Project in Finland, metallurgical testwork is ongoing
using the Platsol process in North America. Gold Fields will produce a new
model and resource estimate once the testwork results are returned.
Project Turnover
Rationalisation of the greenfields portfolio is an ongoing process and this
quarter it was decided to divest our interest in two projects.
At the GoldQuest joint venture in the Dominican Republic, Gold Fields
completed its earn-in commitment in November 2008 for a 60 per cent interest
in a portfolio of GoldQuest Mining Corp`s (TSX: "GQC:V") properties.
However, the decision has been made to discontinue work on the project and we
are currently in discussions with our joint venture partner to rationalise
our interest.
At the Redstar joint venture, Gold Fields has decided to withdraw from its
earn-in agreement in two of Redstar Gold Corp`s (TSX: "RGC.V") projects
located in the Carlin Trend; Nevada, USA. Initial drilling programmes on
both projects concluded this quarter with disappointing results, although
several holes at Richmond Summit encountered anomalous gold and associated
trace element values in favorably altered lower plate host rocks, typical of
Carlin-type mineralisation.
Corporate
Leadership changes at Gold Fields
With effect from 1 January 2009, Paul Schmidt was appointed as chief
financial officer of the Group, a position in which he has acted since May
2008.
Paul is a chartered accountant with eighteen years of industry experience.
He spent six years with Deloitte auditing mainly clients in the gold mining
industry. He joined Gengold, part of the Gencor group, in 1996 as an
assistant financial manager at the St Helena Gold Mine where he worked for
three years, gaining valuable operational experience. He was promoted to the
Gold Fields corporate office as financial manager in 1999, and to the
position of group financial controller in April 2003.
Cash Dividend
In line with the company`s policy of paying out 50 per cent of its earnings,
subject to investment opportunities, an interim dividend has been declared
payable to shareholders as follows:
- interim dividend number 70: 30 SA cents per share
- last date to trade cum-dividend: Friday, 13 February 2009
- sterling and US dollar conversion Monday, 16 February 2009
date:
- trading commences ex-dividend: Monday, 16 February 2009
- record date: Friday, 20 February 2009
- payment date: Monday, 23 February 2009
Share certificates may not be dematerialised or rematerialised between
Monday, 16 February 2009 and Friday, 20 February 2009, both dates inclusive.
Outlook
In the March quarter attributable gold production is forecast to increase by
around 14 per cent to 960,000 ounces, with a run rate of approximately
975,000 ounces by quarter end. This is lower than the previous guidance of
one million ounces due to the decline in the copper price. Notional cash
expenditure (NCE) is forecast to decrease from US$774 per ounce in the
December quarter to US$630 per ounce in the March quarter. This decrease is
due to an increase in production, and a decrease in capital expenditure due
to the completion of the Cerro Corona and Tarkwa expansion projects. Total
cash cost is forecast to reduce from US$487 per ounce to US$440 per ounce.
The March quarter forecast is based on an exchange rate of US$1 = R10.00.
At the South African operations gold production is forecast to increase by 15
per cent mainly due to increased production from Driefontein and Kloof, which
should return to more historic levels with the completion of the safety
related projects undertaken over the past two quarters relating to
infrastructure and secondary support. This forecast assumes that no
significant incidents or accidents occur that could impact production. Total
cash cost and NCE at the South African operations are forecast at US$400 per
ounce and US$600 per ounce respectively. At the international operations
attributable production is forecast to increase by 13 per cent mainly due to
a full quarter`s production from the new CIL plant at Tarkwa, commissioned in
December 2008. Total cash cost and NCE at the international operations are
forecast at US$490 per ounce and US$680 per ounce respectively.
Basis of accounting
The unaudited results for the quarter have been prepared on the International
Financial Reporting Standards (IFRS) basis. The detailed financial,
operational and development results for the December 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 January 2009
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
Quarter
December September December
2008 2008 2007
Revenue 7,074.4 5,723.6 5,429.7
Operating costs, net 4,508.5 4,149.7 3,392.4
- Operating costs 4,542.3 4,233.2 3,341.2
- Gold inventory change (33.8) (83.5) 51.2
Operating profit 2,565.9 1,573.9 2,037.3
Amortisation and depreciation 1,032.8 901.5 762.7
Net operating profit 1,533.1 672.4 1,274.6
Net interest paid (164.2) (111.5) (92.2)
Share of loss of associates after
taxation (46.6) (104.2) -
Gain/(loss) on foreign exchange 45.5 (6.1) (5.1)
Loss on financial instruments (65.9) (55.8) (187.6)
Share based payments (94.3) (93.9) (28.2)
Other (51.5) (21.0) 18.0
Exploration (136.1) (67.7) (78.7)
Profit before tax and exceptional items 1,020.0 212.2 900.8
Exceptional (loss)/gain (5.0) 114.4 1,416.6
Profit before taxation 1,015.0 326.6 2,317.4
Mining and income taxation 496.1 256.9 418.4
- Normal taxation 198.5 203.5 284.5
- Deferred taxation 297.6 53.4 133.9
Net profit from continued operations 518.9 69.7 1,899.0
Profit from discontinued operations - - 45.2
Profit adjustment on sale of Venezuelan
assets - - 74.2
Net profit 518.9 69.7 2,018.4
Attributable to:
- Ordinary shareholders 483.1 39.2 1,938.0
- Minority shareholders 35.8 30.5 80.4
Exceptional items:
Profit/(loss) on sale of investments 1.6 (0.9) 1,414.7
(Loss)/profit on sale of assets (2.9) 1.9 1.9
South Deep restructuring (2.9) (18.8) -
Insurance claim - South Deep (3.6) 132.2 -
Total exceptional items (5.0) 114.4 1,416.6
Taxation 0.8 (46.1) (8.3)
Net exceptional items after tax and
minorities (4.2) 68.3 1,408.3
Net earnings 483.1 39.2 1,938.0
Net earnings per share (cents) 74 6 297
Diluted earnings per share (cents) 69 6 277
Headline earnings 484.1 38.9 455.5
Headline earnings per share (cents) 74 6 70
Net earnings excluding gains and losses
on foreign exchange, 542.3 120.3 602.9
financial instruments, exceptional
items, share of loss of associates
after taxation and discontinued
operations
Net earnings per share excluding gains
and losses on foreign 83 18 93
exchange, financial instruments,
exceptional items, share of loss of
associates after taxation and
discontinued operations (cents)
Gold sold - managed kg 28,291 26,305 31,848
Gold price received R/kg 250,058 217,586 170,488
Total cash cost R/kg 153,893 153,461 101,532
Six months to
December December
2008 2007
Revenue 12,798.0 10,447.9
Operating costs, net 8,658.2 6,694.3
- Operating costs 8,775.5 6,633.1
- Gold inventory change (117.3) 61.2
Operating profit 4,139.8 3,753.6
Amortisation and depreciation 1,934.3 1,533.8
Net operating profit 2,205.5 2,219.8
Net interest paid (275.7) (187.3)
Share of loss of associates after taxation (150.8) -
Gain/(loss) on foreign exchange 39.4 (17.4)
Loss on financial instruments (121.7) (178.7)
Share based payments (188.2) (50.6)
Other (72.5) 29.1
Exploration (203.8) (163.3)
Profit before tax and exceptional items 1,232.2 1,651.6
Exceptional (loss)/gain 109.4 1,445.9
Profit before taxation 1,341.6 3,097.5
Mining and income taxation 753.0 707.5
- Normal taxation 402.0 508.3
- Deferred taxation 351.0 199.2
Net profit from continued operations 588.6
2,390.0
Profit from discontinued operations - 37.0
Profit adjustment on sale of Venezuelan assets - 74.2
Net profit 588.6 2,501.2
Attributable to:
- Ordinary shareholders 522.3 2,366.6
- Minority shareholders 66.3 134.6
Exceptional items:
Profit/(loss) on sale of investments 0.7 1,414.7
(Loss)/profit on sale of assets (1.0) 31.2
South Deep restructuring (21.7) -
Insurance claim - South Deep 128.6 -
Total exceptional items 109.4 1,445.9
Taxation (45.3) (19.5)
Net exceptional items after tax and minorities 64.1 1,426.4
Net earnings 522.3 2,366.6
Net earnings per share (cents) 80 363
Diluted earnings per share (cents) 75 339
Headline earnings 523.0 866.0
Headline earnings per share (cents) 80 133
Net earnings excluding gains and losses on foreign
exchange, 662.6 1,010.6
financial instruments, exceptional items, share of
loss of associates after taxation and discontinued
operations
Net earnings per share excluding gains and losses on
foreign 101 155
exchange, financial instruments, exceptional items,
share of loss of associates after taxation and
discontinued operations (cents)
Gold sold - managed kg 54,596 64,154
Gold price received R/kg 234,413 162,857
Total cash cost R/kg 153,685 99,988
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
UNITED STATES DOLLARS
Quarter
December September December
2008 2008 2007
Revenue 718.1 739.5 800.8
Operating costs, net 450.0 536.1 500.9
- Operating costs 452.6 546.9 493.5
- Gold inventory change (2.6) (10.8) 7.4
Operating profit 268.1 203.4 299.9
Amortisation and depreciation 103.8 116.5 112.7
Net operating profit 164.3 86.9 187.2
Net interest paid (17.0) (14.4) (13.6)
Share of loss of associates after
taxation (3.7) (13.5) -
Gain/(loss) on foreign exchange 5.3 (0.8) (0.8)
Loss on financial instruments (6.7) (7.2) (27.1)
Share based payments (9.3) (12.1) (4.2)
Other (5.6) (2.7) 2.7
Exploration (14.5) (8.7) (11.7)
Profit before tax and exceptional items 112.8 13.1 132.5
Exceptional (loss)/gain (2.3) 14.8 204.5
Profit before taxation 110.5 27.9 337.0
Mining and income taxation 52.6 33.2 61.3
- Normal taxation 19.5 26.3 41.8
- Deferred taxation 33.1 6.9 19.5
Net profit from continued operations 57.9 9.1 275.7
Profit from discontinued operations - - 6.5
Profit adjustment on sale of Venezuelan
assets - - 10.7
Net profit 57.9 9.1 292.9
Attributable to:
- Ordinary shareholders 54.2 5.2 281.1
- Minority shareholders 3.7 3.9 11.8
Exceptional items:
(Loss)/profit on sale of investments 0.2 (0.1) 204.1
Profit/(loss) on sale of assets (0.3) 0.2 0.4
South Deep restructuring (0.1) (2.4) -
Insurance claim - South Deep (2.1) 17.1 -
Total exceptional items (2.3) 14.8 204.5
Taxation 0.8 (6.0) (1.2)
Net exceptional items after tax and
minorities (1.5) 8.8 203.3
Net earnings 54.2 5.2 281.1
Net earnings per share (cents) 8 1 43
Diluted earnings per share (cents) 7 1 40
Headline earnings 54.6 5.0 67.1
Headline earnings per share (cents) 8 1 10
Net earnings excluding gains and losses
on foreign exchange,
financial instruments, exceptional
items, share of loss of associates 59.9 15.6 88.4
after taxation and discontinued
operations
Net earnings per share excluding gains
and losses on foreign exchange,
financial instruments, 10 2 13
exceptional items, share of loss of
associates after taxation and
discontinued operations (cents)
South African rand/United States dollar
conversion rate 9.82 7.74 6.76
South African rand/Australian dollar
conversion rate 6.70 6.97 6.03
Gold sold - managed ozs (000) 910 846 1,024
Gold price received $/oz 792 874 784
Total cash costs $/oz 487 617 467
Six months to
December December
2008 2007
Revenue 1,457.6 1,507.6
Operating costs, net 986.1 966.0
- Operating costs 999.5 957.2
- Gold inventory change (13.4) 8.8
Operating profit 471.5 541.6
Amortisation and depreciation 220.3 221.3
Net operating profit 251.2 320.3
Net interest paid (31.4) (27.0)
Share of loss of associates after taxation (17.2) -
Gain/(loss) on foreign exchange 4.5 (2.5)
Loss on financial instruments (13.9) (25.8)
Share based payments (21.4) (7.3)
Other (8.3) 4.2
Exploration (23.2) (23.6)
Profit before tax and exceptional items 140.3 238.3
Exceptional (loss)/gain 12.5 208.6
Profit before taxation 152.8 446.9
Mining and income taxation 85.8 102.0
- Normal taxation 45.8 73.3
- Deferred taxation 40.0 28.7
Net profit from continued operations 67.0 344.9
Profit from discontinued operations - 5.3
Profit adjustment on sale of Venezuelan assets - 10.7
Net profit 67.0 360.9
Attributable to:
- Ordinary shareholders 59.4 341.5
- Minority shareholders 7.6 19.4
Exceptional items:
(Loss)/profit on sale of investments 0.1 204.1
Profit/(loss) on sale of assets (0.1) 4.5
South Deep restructuring (2.5) -
Insurance claim - South Deep 15.0 -
Total exceptional items 12.5 208.6
Taxation (5.2) (2.8)
Net exceptional items after tax and minorities 7.3 205.8
Net earnings 59.4 341.5
Net earnings per share (cents) 9 52
Diluted earnings per share (cents) 8 49
Headline earnings 59.6 125.0
Headline earnings per share (cents) 9 19
Net earnings excluding gains and losses on foreign
exchange,
financial instruments, exceptional items, share of
loss of associates 75.5 145.8
after taxation and discontinued operations
Net earnings per share excluding gains and losses on
foreign
exchange, financial instruments, exceptional items, 12 22
share of loss of associates after taxation and
discontinued operations (cents)
South African rand/United States dollar conversion
rate 8.78 6.93
South African rand/Australian dollar conversion rate 6.82 6.03
Gold sold - managed ozs (000) 1,755 2,063
Gold price received $/oz 830 731
Total cash costs $/oz 544 449
Balance sheet
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
December June
2008 2008
Property, plant and equipment 49,600.9 45,533.3
Goodwill 4,458.9 4,458.9
Non-current assets 788.0 746.7
Investments 4,359.8 5,704.2
Current assets 7,194.4 6,450.5
- Other current assets 6,140.8 4,443.2
- Cash and deposits 1,053.6 2,007.3
Total assets 66,402.0 62,893.6
Shareholders` equity 43,282.4 42,561.2
Deferred taxation 5,895.1 5,421.9
Long-term loans 10,015.9 6,513.9
Environmental rehabilitation provisions 2,113.2 2,015.5
Post-retirement health care provisions 20.8 21.0
Current liabilities 5,074.6 6,360.1
- Other current liabilities 4,682.7 5,875.9
- Current portion of long-term loans 391.9 484.2
Total equity and liabilities 66,402.0 62,893.6
South African rand/US dollar conversion rate
South African rand/Australian dollar conversion rate
UNITED STATES DOLLARS
December June
2008 2008
Property, plant and equipment 5,145.3 5,691.7
Goodwill 462.5 557.4
Non-current assets 81.7 93.3
Investments 452.3 713.0
Current assets 746.3 806.3
- Other current assets 637.0 555.4
- Cash and deposits 109.3 250.9
Total assets 6,888.1 7,861.7
Shareholders` equity 4,489.9 5,320.1
Deferred taxation 611.5 677.7
Long-term loans 1,039.0 814.2
Environmental rehabilitation provisions 219.2 251.9
Post-retirement health care provisions 2.2 2.6
Current liabilities 526.3 795.2
- Other current liabilities 485.6 734.7
- Current portion of long-term loans 40.7 60.5
Total equity and liabilities 6,888.1 7,861.7
South African rand/US dollar conversion rate 9.64 8.00
South African rand/Australian dollar conversion rate 6.60 7.66
Condensed changes in equity
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
December December
2008 2007
Balance at the beginning of the financial year 42,561.2 37,106.3
Issue of share capital 0.1 0.2
Increase in share premium 11.8 20.8
Marked to market valuation of listed investments (1,710.5) (30.5)
Dividends paid (784.8) (619.9)
Increase in share-based payment reserve 188.2 50.6
Profit attributable to ordinary shareholders 522.3 2,366.6
Profit attributable to minority shareholders 66.3 134.6
Increase/(decrease) in minority interest 733.1 (457.6)
Loss on transacting with minorities - (74.0)
Currency translation adjustment and other 1,604.4 (158.6)
Reserves released on sale of Venezuelan assets - (454.1)
Share of equity investee`s other equity movements 90.3 -
Balance as at the end of December 43,282.4 37,884.4
UNITED STATES DOLLARS
December December
2008 2007
Balance at the beginning of the financial year 5,320.1 5,189.7
Issue of share capital - -
Increase in share premium 1.3 3.0
Marked to market valuation of listed investments (194.8) (4.4)
Dividends paid (89.4) (89.4)
Increase in share-based payment reserve 21.4 7.3
Profit attributable to ordinary shareholders 59.5 341.5
Profit attributable to minority shareholders 7.6 19.4
Increase/(decrease) in minority interest 83.5 (66.0)
Loss on transacting with minorities - (10.7)
Currency translation adjustment and other (729.6) 87.2
Reserves released on sale of Venezuelan assets - (65.5)
Share of equity investee`s other equity movements 10.3 -
Balance as at the end of December 4,489.9 5,412.1
Reconciliation of headline earnings with net earnings
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
December September December
2008 2008 2007
Net earnings 483.1 39.2 1,938.0
(Profit)/loss on sale of investments (1.6) 0.9 (1,414.7)
Taxation effect on sale of investments - - -
Loss/(profit) on sale of assets 2.9 (1.9) (1.9)
Taxation effect on sale of assets (0.3) 0.7 8.3
Impairment of assets/other - - (77.1)
Headline earnings 484.1 38.9 455.5
Headline earnings per share - cents 74 6 70
Based on headline earnings as given
above divided by 653,341,082 for
December 2008 (September 2008 - 653,241,161
and December 2007 - 652,412,191) being the
weighted average number of ordinary
shares in issue.
UNITED STATES DOLLARS
December September December
2008 2008 2007
Net earnings 54.2 5.2 281.1
(Profit)/loss on sale of investments (0.2) 0.1 (204.1)
Taxation effect on sale of investments - (0.1) -
Loss/(profit) on sale of assets 0.3 (0.2) (0.4)
Taxation effect on sale of assets - - 1.2
Impairment of assets/other 0.3 - (10.7)
Headline earnings 54.6 5.0 67.1
Headline earnings per share - cents 8 1 10
Based on headline earnings as given
above divided by 653,341,082 for
December 2008 (September 2008 -
653,241,161 and December 2007 -
652,412,191) being the weighted
average number of ordinary shares in issue.
Cash flow statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
Quarter
December September December
2008 2008 2007
Cash flows from operating activities 1,787.1 (31.7) 1,147.8
Profit before tax and exceptional
items 1,020.0 212.2 900.8
Exceptional items (5.0) 114.4 1,416.6
Amortisation and depreciation 1,032.8 901.5 762.7
Change in working capital (269.2) (577.0) (570.6)
Taxation paid (132.5) (912.6) (129.7)
Other non-cash items 141.0 229.8 (1,352.1)
Discontinued operations - - 120.1
Dividends paid (0.3) (784.5) -
Ordinary shareholders (0.3) (784.5) -
Cash flows from investing activities (2,350.2) (1,907.9) (222.2)
Capital expenditure - additions (2,345.2) (1,812.8) (2,475.5)
Capital expenditure - proceeds on
disposal 0.2 2.2 1.8
Purchase of subsidiaries - - 1,042.1
Purchase of investments 3.5 (86.8) (13.1)
Proceeds on the disposal of
investments - - 36.0
Environmental and post-retirement
health care payments (8.7) (10.5) (6.5)
Discontinued operations - - 1,193.0
Cash flows from financing activities (331.4) 2,597.7 (1,068.5)
Loans received 832.5 3,287.9 727.4
Loans repaid (1,173.1) (692.9) (1,808.2)
Shares issued 9.2 2.7 12.3
Net cash outflow (894.8) (126.4) (142.9)
Translation adjustment 130.3 (62.8) (6.4)
Cash at beginning of period 1,818.1 2,007.3 1,469.9
Cash at end of period 1,053.6 1,818.1 1,320.6
Six months to
December December
2008 2007
Cash flows from operating activities 1,755.4 2,133.1
Profit before tax and exceptional items 1,232.2 1,651.6
Exceptional items 109.4 1,445.9
Amortisation and depreciation 1,934.3 1,533.8
Change in working capital (846.2) (794.4)
Taxation paid (1,045.1) (490.8)
Other non-cash items 370.8 (1,339.4)
Discontinued operations - 126.4
Dividends paid (784.8) (619.9)
Ordinary shareholders (784.8) (619.9)
Cash flows from investing activities (4,258.1) (2,155.0)
Capital expenditure - additions (4,158.0) (4,403.4)
Capital expenditure - proceeds on disposal 2.4 32.6
Purchase of subsidiaries - 1,042.1
Purchase of investments (83.3) (12.0)
Proceeds on the disposal of investments - 32.5
Environmental and post-retirement health care
payments (19.2) (11.4)
Discontinued operations - 1,164.6
Cash flows from financing activities 2,266.3 (324.3)
Loans received 4,120.4 1,636.0
Loans repaid (1,866.0) (1,981.2)
Shares issued 11.9 20.9
Net cash outflow (1,021.2) (966.1)
Translation adjustment 67.5 (23.4)
Cash at beginning of period 2,007.3 2,310.1
Cash at end of period 1,053.6 1,320.6
UNITED STATES DOLLARS
Quarter
December September December
2008 2008 2007
Cash flows from operating activities 186.1 (0.7) 175.1
Profit before tax and exceptional items 112.8 27.5 132.5
Exceptional items (2.3) 14.8 204.5
Amortisation and depreciation 103.8 116.5 112.7
Change in working capital (21.9) (74.5) (83.1)
Taxation paid (18.8) (114.7) (13.7)
Other non-cash items 12.5 29.7 (195.1)
Discontinued operations - - 17.3
Dividends paid - (101.9) -
Ordinary shareholders - (101.9) -
Cash flows from investing activities (238.5) (246.5) (38.6)
Capital expenditure - additions (239.4) (234.2) (363.9)
Capital expenditure - proceeds on
disposal - 0.3 0.4
Purchase of subsidiaries - - 150.4
Purchase of investments 1.7 (11.2) (1.4)
Proceeds on the disposal of investments - - 4.7
Environmental and post-retirement
health care payments (0.8) (1.4) (0.9)
Discontinued operations - - 172.1
Cash flows from financing activities (39.2) 335.6 (151.6)
Loans received 82.7 424.8 108.1
Loans repaid (123.0) (89.5) (261.5)
Shares issued 1.1 0.3 1.8
Net cash outflow (91.6) (13.5) (15.1)
Translation adjustment (28.4) (8.1) (6.2)
Cash at beginning of period 229.3 250.9 210.0
Cash at end of period 109.3 229.3 188.7
Six months to
December December
2008 2007
Cash flows from operating activities 185.4 306.2
Profit before tax and exceptional items 140.3 238.3
Exceptional items 12.5 208.6
Amortisation and depreciation 220.3 221.3
Change in working capital (96.4) (114.6)
Taxation paid (133.5) (72.3)
Other non-cash items 42.2 (193.3)
Discontinued operations - 18.2
Dividends paid (101.9) (88.6)
Ordinary shareholders (101.9) (88.6)
Cash flows from investing activities (485.0) (310.8)
Capital expenditure - additions (473.6) (635.4)
Capital expenditure - proceeds on disposal 0.3 4.7
Purchase of subsidiaries - 150.4
Purchase of investments (9.5) (1.7)
Proceeds on the disposal of investments - 4.7
Environmental and post-retirement health care payments (2.2) (1.6)
Discontinued operations - 168.1
Cash flows from financing activities 296.4 (46.8)
Loans received 507.5 236.1
Loans repaid (212.5) (285.9)
Shares issued 1.4 3.0
Net cash outflow (105.1) (140.0)
Translation adjustment (36.5) 5.6
Cash at beginning of period 250.9 323.1
Cash at end of period 109.3 188.7
Hedging / Derivatives
The Group`s policy is to remain unhedged to the gold price. However, hedges
are
sometimes undertaken on a project specific basis as follows:
? to protect cash flows at times of significant expenditure;
? for specific debt servicing requirements; and
? to safeguard the viability of higher cost operations.
Gold Fields may from time to time establish currency financial instruments to
protect underlying cash flows.
Gold Fields has various currency financial instruments - those remaining are
described in the schedule.
Position at end of December 2008
Western Areas US Dollars / Rand forward purchases
As a result of the US$551 million drawn down under the original bridge loan
facility to settle the close-out of the Western Areas gold derivative
structure
on 30 January 2007, US dollar/rand forward cover was purchased during the
March
2007 quarter to cover this amount. During financial 2008, US$233 million of
this loan was repaid and the forward cover was reduced to US$318 million to
correspond with the loan amount outstanding. At 31 December 2008, the
unrealised foreign exchange loss on the revaluation of the US$318 million
loan
was R746 million. This loss was offset by R746 million cumulative positive
gains on the forward cover purchased at an original rate of R7.3279.
During the December quarter R65 million of forward cover costs were accounted
for as part of interest, as this forward cover has been designated as a
hedging
instrument.
South Africa US Dollars / Rand forward sales
In October 2008, US$150 million of expected gold revenue for the December
quarter was sold forward on behalf of the South African operations. In
December 2008, US$150 million was extended to the March quarter at an average
forward rate of R10.3818. At the end of December 2008 the marked to market
value of the US$150 million forward cover was positive by R90 million (US$9
million).
Australia US Dollars / Australian Dollars forward sales
In October 2008, US$70 million of expected gold revenue for the December
quarter was sold forward on behalf of the Australian operations. In December
2008, US$56 million was extended to the March quarter at an average forward
rate of A$0.6650. At the end of December 2008 the marked to market value of
the
US$56 million forward cover was positive by US$1 million.
Ghana currency forward sales
In August 2008, South African rand, Australian dollar and Euro forward cover
was taken in the name of Gold Fields Ghana Ltd to cover foreign currency
exposure on capital projects. Outstanding at the end of December were forward
cover contracts of A$1 million and R11 million, both maturing in January.
The marked to market value for the outstanding contracts at the end of the
December 2008 quarter was positive by US$1 million.
Diesel Hedge
Ghana
Gold Fields Ghana Holdings (BVI) Ltd purchased four Asian style ICE Gasoil
call options with strike prices ranging from US$0.90 per litre to US$1.11 per
litre, which equates to a Brent crude price of between US$92 and US$142 per
barrel, with final expiry on 28 February 2010.
The marked to market value for the above call options purchased was positive
by
US$0.3 million at the end of the December 2008 quarter, compared with the
premium paid of US$10 million.
Australia
Gold Fields Australia purchased two Asian style Singapore 0.5 Gasoil call
options with strike prices ranging from US$0.9128 per litre to US$1.0950 per
litre with a final expiry on 28 February 2010. The marked to market value for
the above call options purchased was positive by US$0.1 million at the end of
the December 2008 quarter, compared with a premium paid of US$4 million.
The premiums paid for the Ghanaian and Australian options as details above,
except for US$0.3 million and US$0.1 million respectively, have been
expensed.
Total cash cost
Gold Industry Standards Basis
Figures are in millions unless otherwise stated
South African Operations
Total Mine
Operations Total Driefontein Kloof
Operating costs (1)
Dec 2008 4,542.3 2,429.7 876.8 772.8
Sept 2008 4,233.2 2,467.7 880.6 785.4
Financial year to date 8,775.5 4,897.4 1,757.4 1,558.2
Gold-in-process and
inventory change*
Dec 2008 (44.3) - - -
Sept 2008 (63.3) - - -
Financial year to date (107.6) - - -
Less:
Rehabilitation costs
Dec 2008 27.6 18.9 7.0 6.7
Sept 2008 23.1 18.8 7.0 6.8
Financial year to date 50.7 37.7 14.0 13.5
Production taxes
Dec 2008 6.2 6.2 1.4 3.2
Sept 2008 7.6 7.6 2.1 3.0
Financial year to date 13.8 13.8 3.5 6.2
General and admin
Dec 2008 176.8 91.6 33.8 27.0
Sept 2008 163.0 98.5 37.0 29.7
Financial year to date 339.8 190.1 70.8 56.7
Exploration costs
Dec 2008 18.8 - - -
Sept 2008 13.7 - - -
Financial year to date 32.5 - - -
Cash operating costs
Dec 2008 4,268.6 2,313.0 834.6 735.9
Sept 2008 3,962.5 2,342.8 834.5 745.9
Financial year to date 8,231.1 4,655.8 1,669.1 1,481.8
Plus:
Production taxes
Dec 2008 6.2 6.2 1.4 3.2
Sept 2008 7.6 7.6 2.1 3.0
Financial year to date 13.8 13.8 3.5 6.2
Royalties
Dec 2008 79.0 - - -
Sept 2008 66.7 - - -
Financial year to date 145.7 - - -
TOTAL CASH COST (2)
Dec 2008 4,353.8 2,319.2 836.0 739.1
Sept 2008 4,036.8 2,350.4 836.6 748.9
Financial year to date 8,390.6 4,669.6 1,672.6 1,488.0
Plus:
Amortisation*
Dec 2008 1,005.9 480.1 143.4 161.8
Sept 2008 832.8 462.4 139.6 174.8
Financial year to date 1,838.7 942.5 283.0 336.6
Rehabilitation
Dec 2008 27.6 18.9 7.0 6.7
Sept 2008 23.1 18.8 7.0 6.8
Financial year to date 50.7 37.7 14.0 13.5
TOTAL PRODUCTION COST (3)
Dec 2008 5,387.3 2,818.2 986.4 907.6
Sept 2008 4,892.7 2,831.6 983.2 930.5
Financial year
to date 10,280.0 5,649.8 1,969.6 1,838.1
Gold sold -
thousand ounces
Dec 2008 909.6 500.6 194.9 151.7
Sept 2008 845.7 492.0 206.7 156.6
Financial year to date 1,755.3 992.7 401.6 308.3
TOTAL CASH COST - US$/oz
Dec 2008 487 472 437 496
Sept 2008 617 617 523 618
Financial year to date 544 536 474 550
TOTAL CASH COST - R/kg
Dec 2008 153,893 148,944 137,886 156,689
Sept 2008 153,461 153,581 130,149 153,747
Financial year to date 153,685 151,242 133,904 155,194
TOTAL PRODUCTION COST
- US$/oz
Dec 2008 603 573 515 609
Sept 2008 747 744 615 768
Financial year to date 667 648 559 679
South African Operations
South
Beatrix Deep Total
Operating costs (1)
Dec 2008 503.1 277.0 2,112.6
Sept 2008 498.6 303.1 1,765.5
Financial year to date 1,001.7 580.1 3,878.1
Gold-in-process and
inventory change*
Dec 2008 - - (44.3)
Sept 2008 - - (63.3)
Financial year to date - - (107.6)
Less:
Rehabilitation costs
Dec 2008 3.4 1.8 8.7
Sept 2008 3.3 1.7 4.3
Financial year to date 6.7 3.5 13.0
Production taxes
Dec 2008 0.7 0.9 -
Sept 2008 1.4 1.1 -
Financial year to date 2.1 2.0 -
General and admin
Dec 2008 19.1 11.7 85.2
Sept 2008 18.8 13.0 64.5
Financial year to date 37.9 24.7 149.7
Exploration costs
Dec 2008 - - 18.8
Sept 2008 - - 13.7
Financial year to date - - 32.5
Cash operating costs
Dec 2008 749.9 262.6 1,955.6
Sept 2008 475.1 287.3 1,619.7
Financial year to date 955.0 549.9 3,575.3
Plus:
Production taxes
Dec 2008 0.7 0.9 -
Sept 2008 1.4 1.1 -
Financial year to date 2.1 2.0 -
Royalties
Dec 2008 - - 79.0
Sept 2008 - - 66.7
Financial year to date - - 145.7
TOTAL CASH COST (2)
Dec 2008 480.6 263.5 2,034.6
Sept 2008 476.5 288.4 1,686.4
Financial year to date 957.1 551.9 3,721.0
Plus:
Amortisation*
Dec 2008 111.9 63.0 525.8
Sept 2008 98.9 49.1 370.4
Financial year to date 210.8 112.1 896.2
Rehabilitation
Dec 2008 3.4 1.8 8.7
Sept 2008 3.3 1.7 4.3
Financial year to date 6.7 3.5 13.0
TOTAL PRODUCTION COST (3)
Dec 2008 595.9 328.3 2,569.1
Sept 2008 578.7 339.2 2,061.1
Financial year
to date 1,174.6 667.5 4,630.2
Gold sold -
thousand ounces
Dec 2008 106.7 47.3 409.0
Sept 2008 101.5 27.3 353.7
Financial year to date 208.2 74.6 762.7
TOTAL CASH COST - US$/oz
Dec 2008 459 567 507
Sept 2008 607 1,365 616
Financial year to date 524 843 556
TOTAL CASH COST - R/kg
Dec 2008 144,759 179,130 159,953
Sept 2008 150,982 339,694 153,295
Financial year to date 147,792 237,888 156,865
TOTAL PRODUCTION COST
- US$/oz
Dec 2008 569 707 640
Sept 2008 737 1,606 753
Financial year to date 643 1,019 691
International Operations
Ghana Peru Australia #
Cerro
Tarkwa Damang Corona St Ives Agnew
Operating
costs (1)
Dec 2008 833.2 339.0 210.7 563.1 166.6
Sept 2008 688.7 274.8 52.7 560.2 189.1
Financial year
to date 1,521.9 613.8 263.4 1,123.3 355.7
Gold-in-process and
inventory
change*
Dec 2008 (58.3) (24.3) 7.6 26.0 0.2
Sept 2008 (18.8) (4.9) (52.7) 3.0 10.1
Financial year
to date (72.6) (29.2) (45.1) 29.0 10.3
Less:
Rehabilitation
costs
Dec 2008 2.0 - 3.7 2.1 0.9
Sept 2008 1.5 - - 2.1 0.7
Financial year
to date 3.5 - 3.7 4.2 1.6
Production
taxes
Dec 2008 - - - - -
Sept 2008 - - - - -
Financial year
to date - - - - -
General and
admin
Dec 2008 40.4 6.6 12.8 15.7 9.7
Sept 2008 36.7 5.1 - 16.4 6.3
Financial year
to date 77.1 11.7 12.8 32.1 16.0
Exploration
costs
Dec 2008 - 12.1 - 5.5 1.2
Sept 2008 - 4.6 - 7.8 1.3
Financial year
to date - 16.7 - 13.3 2.5
Cash operating
costs
Dec 2008 737.0 296.0 201.8 565.8 155.0
Sept 2008 631.7 260.2 - 536.9 190.9
Financial year
to date 1,368.7 556.2 201.8 1,102.7 345.9
Plus:
Production
taxes
Dec 2008 - - - - -
Sept 2008 - - - - -
Financial year
to date - - - - -
Royalties
Dec 2008 33.7 11.9 2.4 22.0 9.0
Sept 2008 31.6 8.9 - 17.5 8.7
Financial year
to date 65.3 20.8 2.4 39.5 17.7
TOTAL CASH
COST (2)
Dec 2008 770.7 307.9 204.2 587.8 164.0
Sept 2008 663.3 269.1 - 554.4 199.6
Financial year
to date 1,434.0 577.0 204.2 1,142.2 363.6
Plus:
Amortisation*
Dec 2008 135.2 43.5 94.6 252.5
Sept 2008 114.9 25.4 - 230.1
Financial year
to date 250.1 68.9 94.6 482.6
Rehabilitation
Dec 2008 2.0 - 3.7 3.0
Sept 2008 1.5 - - 2.8
Financial year
to date 1.5 - 3.7 5.8
TOTAL
PRODUCTION
COST (3)
Dec 2008 907.9 351.4 302.5 1,007.3
Sept 2008 779.7 294.5 - 986.9
Financial year
to date 1,687.6 645.9 302.5 1,994.2
Gold sold -
thousand ounces
Dec 2008 139.3 50.4 65.5 108.7 45.0
Sept 2008 156.3 44.0 - 101.2 52.2
Financial year
to date 295.6 94.5 65.5 209.8 97.3
TOTAL CASH
COST - US$/oz
Dec 2008 563 622 355 551 371
Sept 2008 548 790 - 708 494
Financial year
to date 553 696 355 620 426
TOTAL CASH
COST - R/kg
Dec 2008 177,868 196,240 100,245 173,905 117,059
Sept 2008 136,481 196,567 - 176,168 122,831
Financial year
to date 155,988 196,392 100,245 174,996 120,159
TOTAL
PRODUCTION
COST
- US$/oz
Dec 2008 664 709 526 667
Sept 2008 645 864 - 831
Financial year
to date 650 779 526 740
DEFINITIONS
Total cash cost and Total production cost 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 cost - Operating costs less off-mine costs, which include
general and administration costs, as detailed in the table above.
(3) Total production cost - Total cash cost 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 = R9.82 and US$1 = R7.74 for the December
2008
and September 2008 quarters respectively.
Notional cash expenditure ##
South African Operations
Total
Mines Total Driefontein
Kloof
Operating costs - R`m
Dec 2008 4,542.3 2,429.7 876.8
772.8
Sept 2008 4,233.2 2,467.7 880.6
785.4
Financial year to date 8,775.5 4,897.4 1,757.4
1,558.2
Capital expenditure - R`m
Dec 2008 2,336.6 906.8 253.7
250.7
Sept 2008 1,802.4 788.1 207.7
238.2
Financial year to date 4,139.0 1,694.9 461.4
488.9
Notional cash
expenditure - R/kg
Dec 2008 244,210 214,277 186,459
216,981
Sept 2008 226,120 212,742 169,306
210,142
Financial year to date 235,408 213,516 177,632
213,506
Notional cash
expenditure - U$/oz
Dec 2008 774 679 591
687
Sept 2008 909 855 680
844
Financial year to date 834 756 629
756
South African Operations
South
Beatrix Deep Total
Operating costs - R`m
Dec 2008 503.1 277.0 2,112.6
Sept 2008 498.6 303.1 1,765.5
Financial year to date 1,001.7 580.1 3,878.1
Capital expenditure - R`m
Dec 2008 146.7 255.7 1,429.8
Sept 2008 153.5 188.7 1,014.3
Financial year to date 300.2 444.4 2,444.1
Notional cash
expenditure - R/kg
Dec 2008 195,723 362,135 281,210
Sept 2008 206,622 579,270 244,099
Financial year to date 201,035 441,595 263,590
Notional cash
expenditure - U$/oz
Dec 2008 620 1,147 891
Sept 2008 830 2,328 981
Financial year to date 712 1,564 934
International Operations
Ghana
Tarkwa Damang
Operating costs - R`m
Dec 2008 833.2 339.0
Sept 2008 688.7 274.8
Financial year to date 1,521.9 613.8
Capital expenditure - R`m
Dec 2008 641.5 34.0
Sept 2008 555.5 30.2
Financial year to date 1,197.0 64.2
Notional cash
expenditure - R/kg
Dec 2008 340,342 237,731
Sept 2008 256,008 222,790
Financial year to date 295,758 230,769
Notional cash
expenditure - U$/oz
Dec 2008 1,078 753
Sept 2008 1,029 895
Financial year to date 1,048 818
International Operations
Peru Australia
Cerro
Corona St Ives Agnew
Operating costs - R`m
Dec 2008 210.7 563.1 166.6
Sept 2008 52.7 560.2 189.1
Financial year to date 263.4 1,123.3 355.7
Capital expenditure - R`m
Dec 2008 515.0 161.8 77.5
Sept 2008 167.7 212.2 48.7
Financial year to date 682.7 374.0 126.2
Notional cash
expenditure - R/kg
Dec 2008 379,154 214,467 174,233
Sept 2008 569,509 245,440 146,338
Financial year to date 411,169 229,401 159,253
Notional cash
expenditure - U$/oz
Dec 2008 1,201 679 552
Sept 2008 2,289 986 588
Financial year to date 1,457 813 564
## Notional cash expenditure (NCE) per kilogram (ounce) = operating costs
plus
capital expenditure divided by gold produced.
Operating and financial results
SOUTH AFRICAN RAND
South African Operations
Total Mine
Operations Total Driefontein Kloof
Operating Results
Ore milled/treated
(000 tons)
Dec 2008 13,350 3,458 1,608 768
Sept 2008 12,698 3,488 1,536 971
Financial year to date 26,048 6,946 3,144 1,739
Yield (grams per ton)
Dec 2008 2.1 4.5 3.8 6.1
Sept 2008 2.1 4.4 4.2 5.0
Financial year to date 2.1 4.4 4.0 5.5
Gold produced
(kilograms)
Dec 2008 28,168 15,571 6,063 4,717
Sept 2008 26,692 15,304 6,428 4,871
Financial year to date 54,860 30,875 12,491 9,588
Gold sold (kilograms)
Dec 2008 28,291 15,571 6,063 4,717
Sept 2008 26,305 15,304 6,428 4,871
Financial year to date 54,596 30,875 12,491 9,588
Gold price received
(Rand per kilogram)
Dec 2008 250,058 254,550 253,818 254,039
Sept 2008 217,586 216,702 216,226 217,512
Financial year to date 234,413 235,789 234,473 235,482
Total cash cost
(Rand per kilogram)
Dec 2008 153,893 148,944 137,886 156,689
Sept 2008 153,461 153,581 130,149 153,747
Financial year to date 153,685 151,242 133,904 155,194
Notional cash
expenditure
(Rand per kilogram)
Dec 2008 244,210 214,277 186,459 216,981
Sept 2008 226,120 212,742 169,306 210,142
Financial year to date 235,408 213,516 177,632 213,506
Operating costs
(Rand per ton)
Dec 2008 340 703 545 1,006
Sept 2008 333 707 573 809
Financial year to date 337 705 559 896
Financial Results
(Rand million)
Revenue
Dec 2008 7,074.4 3,963,6 1,538.9 1,198.3
Sept 2008 5,723.6 3,316.4 1,389.9 1,059.5
Financial year to date 12,798.0 7,280.0 2,928.8 2,257.8
Operating costs, net
Dec 2008 4,508.5 2,429.7 876.8 772.8
Sept 2008 4,149.7 2,467.7 880.6 785.4
Financial year to date 8,658.2 4,897.4 1,757.4 1,558.2
- Operating costs
Dec 2008 4,542.3 2,429.7 876.8 772.8
Sept 2008 4,233.2 2,467.7 880.6 785.4
Financial year to date 8,775.5 4,897.4 1,757.4 1,558.2
- Gold inventory
change
Dec 2008 (33.8) - - -
Sept 2008 (83.5) - - -
Financial year to date (117.3) - - -
Operating profit
Dec 2008 2,565.9 1,533.9 662.1 425.5
Sept 2008 1,573.9 848.7 509.3 274.1
Financial year to date 4,139.8 2,382.6 1,171.4 699.6
Amortisation of
mining assets
Dec 2008 995.4 480.1 143.4 161.8
Sept 2008 864.1 462.4 139.6 174.8
Financial year to date 1,859.5 942.5 283.0 336.6
Net operating profit
Dec 2008 1,570.5 1,053.8 518.7 263.7
Sept 2008 709.8 386.3 369.7 99.3
Financial year to date 2,280.3 1,440.1 888.4 363.0
Other income/(expense)
Dec 2008 (179.5) (93.3) (50.1) (41.7)
Sept 2008 (131.6) (79.3) (29.9) (23.9)
Financial year to date (311.1) (172.6) (80.0) (65.6)
Profit before taxation
Dec 2008 1,391.0 960.5 468.6 222.0
Sept 2008 578.2 307.0 339.8 75.4
Financial year to date 1,969.2 1,267.5 808.4 297.4
Mining and income
taxation
Dec 2008 471.4 311.2 160.3 45.9
Sept 2008 283.2 151.1 115.2 32.5
Financial year to date 754.6 462.3 275.5 78.4
- Normal taxation
Dec 2008 134.2 113.5 110.0 3.2
Sept 2008 193.4 68.4 66.4 1.9
Financial year to date 327.6 181.9 176.4 5.1
- Deferred taxation
Dec 2008 337.2 197.7 50.3 42.7
Sept 2008 89.8 82.7 48.8 30.6
Financial year to date 427.0 280.4 99.1 73.3
Profit before
exceptional items
Dec 2008 919.6 649.3 308.3 176.1
Sept 2008 295.0 155.9 224.6 42.9
Financial year to date 1,214.6 805.2 532.9 219.0
Exceptional items
Dec 2008 3.6 4.9 - -
Sept 2008 115.4 115.2 1.7 -
Financial year to date 119.0 120.1 1.7 -
Net profit
Dec 2008 923.2 654.2 308.3 176.1
Sept 2008 410.4 271.1 226.3 42.9
Financial year to date 1,333.6 925.3 534.6 219.0
Net profit
excluding gains
and losses on
foreign exchange,
financial
instruments and
exceptional items
Dec 2008 971.8 636.1 308.3 176.1
Sept 2008 386.2 202.0 225.3 42.9
Financial year to date 1,358.0 838.1 533.6 219.0
Capital expenditure
Dec 2008 2,336.6 906.8 253.7 250.7
Sept 2008 1,802.4 788.1 207.7 238.2
Financial year to date 4,139.0 1,694.9 461.4 488.9
Planned for
next six months
to June 2009 3,758.1 2,012.5 579.3 530.9
South African Operations
Beatrix South Deep
Operating Results
Ore milled/treated
(000 tons)
Dec 2008 798 284
Sept 2008 790 191
Financial year to date 1,588 475
Yield (grams per ton)
Dec 2008 4.2 6.2
Sept 2008 4.0 4.5
Financial year to date 4.1 5.4
Gold produced (kilograms)
Dec 2008 3,320 1,471
Sept 2008 3,156 849
Financial year to date 6,476 2,320
Gold sold (kilograms)
Dec 2008 3,320 1,471
Sept 2008 3,156 849
Financial year to date 6,476 2,320
Gold price received
(Rand per kilogram)
Dec 2008 256,596 254,589
Sept 2008 216,413 216,726
Financial year to date 237,014 240,733
Total cash cost
(Rand per kilogram)
Dec 2008 144,759 179,130
Sept 2008 150,982 339,694
Financial year to date 147,792 237,888
Notional cash
expenditure
(Rand per kilogram)
Dec 2008 195,723 362,135
Sept 2008 206,622 579,270
Financial year to date 201,035 441,595
Operating costs
(Rand per ton)
Dec 2008 630 975
Sept 2008 631 1,587
Financial year to date 631 1,221
Financial Results
(Rand million)
Revenue
Dec 2008 851.9 374.5
Sept 2008 683.0 184.0
Financial year to date 1,534.9 558.5
Operating costs, net
Dec 2008 503.1 277.0
Sept 2008 498.6 303.1
Financial year to date 1,001.7 580.1
- Operating costs
Dec 2008 503.1 277.0
Sept 2008 498.6 303.1
Financial year to date 1,001.7 580.1
- Gold inventory change
Dec 2008 - -
Sept 2008 - -
Financial year to date - -
Operating profit
Dec 2008 348.8 97.5
Sept 2008 184.4 (119.1)
Financial year to date 533.2 (21.6)
Amortisation of
mining assets
Dec 2008 111.9 63.0
Sept 2008 98.9 49.1
Financial year to date 210.8 112.1
Net operating profit
Dec 2008 236.9 34.5
Sept 2008 85.5 (168.2)
Financial year to date 322.4 (133.7)
Other income/(expense)
Dec 2008 (5.5) 4.0
Sept 2008 (10.3) (15.2)
Financial year to date (15.8) (11.2)
Profit before taxation
Dec 2008 231.4 38.5
Sept 2008 75.2 (183.4)
Financial year to date 306.6 (144.9)
Mining and income taxation
Dec 2008 87.7 17.3
Sept 2008 31.4 (28.0)
Financial year to date 119.1 (10.7)
- Normal taxation
Dec 2008 0.3 -
Sept 2008 0.1 -
Financial year to date 0.4 -
- Deferred taxation
Dec 2008 87.4 17.3
Sept 2008 31.3 (28.0)
Financial year to date 118.7 (10.7)
Profit before
exceptional items
Dec 2008 143.7 21.2
Sept 2008 43.8 (155.4)
Financial year to date 187.5 (134.2)
Exceptional items
Dec 2008 - 4.9
Sept 2008 0.2 113.3
Financial year to date 0.2 118.2
Net profit
Dec 2008 143.7 26.1
Sept 2008 44.0 (42.1)
Financial year to date 187.7 (16.0)
Net profit
excluding gains
and losses on
foreign exchange,
financial
instruments and
exceptional items
Dec 2008 143.7 8.0
Sept 2008 43.9 (110.1)
Financial year to date 187.6 (102.1)
Capital expenditure
Dec 2008 146.7 255.7
Sept 2008 153.5 188.7
Financial year to date 300.2 444.4
Planned for
next six months
to June 2009 306.1 596.2
Operating and financial results
SOUTH AFRICAN RAND
International Operations
Ghana
Total Tarkwa Damang
Operating Results
Ore milled/treated (000 tons)
Dec 2008 9,892 5,384 1,216
Sept 2008 9,210 5,507 1,137
Financial year to date 19,102 10,891 2,353
Yield (grams per ton)
Dec 2008 1.3 0.8 1.3
Sept 2008 1.2 0.9 1.2
Financial year to date 1.3 0.8 1.2
Gold produced (kilograms)
Dec 2008 12,597 4,333 1,569
Sept 2008 11,388 4,860 1,369
Financial year to date 23,985 9,193 2,938
Gold sold (kilograms)
Dec 2008 12,720 4,333 1,569
Sept 2008 11,001 4,860 1,369
Financial year to date 23,721 9,193 2,938
Gold price received
(Rand per kilogram)
Dec 2008 244,560 259,820 253,219
Sept 2008 218,816 216,584 215,997
Financial year to date 233,621 236,963 235,875
Total cash cost
(Rand per kilogram)
Dec 2008 159,953 177,868 196,240
Sept 2008 153,295 136,481 196,567
Financial year to date 156,865 155,988 196,392
Notional cash expenditure
(Rand per kilogram)
Dec 2008 281,210 340,342 237,731
Sept 2008 244,099 256,008 222,790
Financial year to date 263,590 295,758 230,769
Operating costs
(Rand per ton)
Dec 2008 214 155 279
Sept 2008 192 125 242
Financial year to date 203 140 261
Financial Results
(Rand million)
Revenue
Dec 2008 3,110.8 1,125.8 397.3
Sept 2008 2,407.2 1,052.6 295.7
Financial year to date 5,518.0 2,178.4 693.0
Operating costs, net
Dec 2008 2,078.8 774.6 314.7
Sept 2008 1,682.0 664.3 269.9
Financial year to date 3,760.8 1,438.9 584.6
- Operating costs
Dec 2008 2,112.6 833.2 339.0
Sept 2008 1,765.5 688.7 274.8
Financial year to date 3,878.1 1,521.9 613.8
- Gold inventory change
Dec 2008 (33.8) (58.6) (24.3)
Sept 2008 (83.5) (24.4) (4.9)
Financial year to date (117.3) (83.0) (29.2)
Operating profit
Dec 2008 1,032.0 351.2 82.6
Sept 2008 725.2 388.3 25.8
Financial year to date 1,757.2 739.5 108.4
Amortisation of
mining assets
Dec 2008 515.3 140.0 43.5
Sept 2008 401.7 120.5 25.4
Financial year to date 917.0 260.5 68.9
Net operating profit
Dec 2008 516.7 211.2 39.1
Sept 2008 323.5 267.8 0.4
Financial year to date 840.2 479.0 39.5
Other income/(expense)
Dec 2008 (86.2) (58.8) (19.3)
Sept 2008 (52.3) (36.5) (13.7)
Financial year to date (138.5) (95.3) (33.0)
Profit before taxation
Dec 2008 430.5 152.4 19.8
Sept 2008 271.2 231.3 (13.3)
Financial year to date 701.7 383.7 6.5
Mining and income taxation
Dec 2008 160.2 54.4 11.6
Sept 2008 132.1 84.8 3.2
Financial year to date 292.3 139.2 14.8
- Normal taxation
Dec 2008 20.7 (24.5) 11.9
Sept 2008 125.0 89.9 8.9
Financial year to date 145.7 65.4 20.8
- Deferred taxation
Dec 2008 139.5 78.9 (0.3)
Sept 2008 7.1 (5.1) (5.7)
Financial year to date 146.6 73.8 (6.0)
Profit before
exceptional items
Dec 2008 270.3 98.0 8.2
Sept 2008 139.1 146.5 (16.5)
Financial year to date 409.4 244.5 (8.3)
Exceptional items
Dec 2008 (1.3) - -
Sept 2008 0.2 - -
Financial year to date (1.1) - -
Net profit
Dec 2008 269.0 98.0 8.2
Sept 2008 139.3 146.5 (16.5)
Financial year to date 408.3 244.5 (8.3)
Net profit excluding
gains and losses on
foreign exchange,
financial instruments and
exceptional items
Dec 2008 335.7 140.7 19.9
Sept 2008 184.2 168.1 (8.2)
Financial year to date 519.9 308.8 11.7
Capital expenditure
Dec 2008 1,429.8 641.5 34.0
Sept 2008 1,014.3 555.5 30.2
Financial year to date 2,444.1 1,197.0 64.2
Planned for next six
months to June 2009 1,745.6 697.9 80.5
International Operations
Peru* Australia #
Cerro
Corona St Ives Agnew
Operating Results
Ore milled/treated (000 tons)
Dec 2008 1,199 1,840 253
Sept 2008 441 1,817 308
Financial year to date 1,640 3,657 561
Yield (grams per ton)
Dec 2008 1.6 1.8 5.5
Sept 2008 0.9 1.7 5.3
Financial year to date 1.4 1.8 5.4
Gold produced (kilograms)
Dec 2008 1,914 3,380 1,401
Sept 2008 387 3,147 1,625
Financial year to date 2,301 6,527 3,026
Gold sold (kilograms)
Dec 2008 2,037 3,380 1,401
Sept 2008 - 3,147 1,625
Financial year to date 2,037 6,527 3,026
Gold price received
(Rand per kilogram)
Dec 2008 173,411 256,953 261,171
Sept 2008 - 221,926 221,846
Financial year to date 173,411 240,064 240,053
Total cash cost
(Rand per kilogram)
Dec 2008 100,245 173,905 117,059
Sept 2008 - 176,168 122,831
Financial year to date 100,245 174,996 120,159
Notional cash expenditure
(Rand per kilogram)
Dec 2008 379,154 214,467 174,233
Sept 2008 569,509 245,440 146,338
Financial year to date 411,169 229,401 159,253
Operating costs
(Rand per ton)
Dec 2008 176 306 658
Sept 2008 120 308 614
Financial year to date 161 307 634
Financial Results
(Rand million)
Revenue
Dec 2008 353.3 868.5 365.9
Sept 2008 - 698.4 360.5
Financial year to date 353.3 1,566.9 726.4
Operating costs, net
Dec 2008 221.9 600.8 166.8
Sept 2008 (20.1) 565.4 202.5
Financial year to date 201.8 1,166.2 369.3
- Operating costs
Dec 2008 210.7 563.1 166.6
Sept 2008 52.7 560.2 189.1
Financial year to date 263.4 1,123.3 355.7
- Gold inventory change
Dec 2008 11.2 37.7 0.2
Sept 2008 (72.8) 5.2 13.4
Financial year to date (61.6) 42.9 13.6
Operating profit
Dec 2008 131.4 267.7 199.1
Sept 2008 20.1 133.0 158.0
Financial year to date 151.5 400.7 357.1
Amortisation of
mining assets
Dec 2008 91.0 240.8
Sept 2008 31.2 224.6
Financial year to date 122.2 465.4
Net operating profit
Dec 2008 40.4 226.0
Sept 2008 (11.1) 66.4
Financial year to date 29.3 292.4
Other income/(expense)
Dec 2008 (10.8) 2.7
Sept 2008 (12.6) 10.5
Financial year to date (23.4) 13.2
Profit before taxation
Dec 2008 29.6 228.7
Sept 2008 (23.7) 76.9
Financial year to date 5.9 305.6
Mining and income taxation
Dec 2008 2.3 91.9
Sept 2008 1.4 42.7
Financial year to date 3.7 134.6
- Normal taxation
Dec 2008 2.4 30.9
Sept 2008 - 26.2
Financial year to date 2.4 57.1
- Deferred taxation
Dec 2008 (0.1) 61.0
Sept 2008 1.4 16.5
Financial year to date 1.3 77.5
Profit before
exceptional items
Dec 2008 27.3 136.8
Sept 2008 (25.1) 34.2
Financial year to date 2.2 171.0
Exceptional items
Dec 2008 - (1.3)
Sept 2008 - 0.2
Financial year to date - (1.1)
Net profit
Dec 2008 27.3 135.5
Sept 2008 (25.1) 34.4
Financial year to date 2.2 169.9
Net profit excluding
gains and losses on
foreign exchange,
financial instruments and
exceptional items
Dec 2008 27.3 147.8
Sept 2008 (25.1) 49.4
Financial year to date 2.2 197.2
Capital expenditure
Dec 2008 515.0 161.8 77.5
Sept 2008 167.7 212.2 48.7
Financial year to date 682.7 374.0 126.2
Planned for next six
months to June 2009 387.0 387.1 193.1
# 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
South African Operations
Total Mine
Operations Total Driefontein
Operating Results
Ore milled/treated (000 tons)
Dec 2008 13,350 3,458 1,608
Sept 2008 12,698 3,488 1,536
Financial year to date 26,048 6,946 3,144
Yield (ounces per ton)
Dec 2008 0.068 0.145 0.121
Sept 2008 0.068 0.141 0.135
Financial year to date 0.068 0.143 0.128
Gold produced (000 ounces)
Dec 2008 905.6 500.6 194.9
Sept 2008 858.2 492.0 206.7
Financial year to date 1,763.8 992.7 401.6
Gold sold (000 ounces)
Dec 2008 909.6 500.6 194.9
Sept 2008 845.7 492.0 206.7
Financial year to date 1,755.3 992.7 401.6
Gold price received
(dollars per ounce)
Dec 2008 792 806 804
Sept 2008 874 871 869
Financial year to date 830 835 831
Total cash cost
(dollars per ounce)
Dec 2008 487 472 437
Sept 2008 617 617 523
Financial year to date 544 536 474
Notional cash expenditure
(dollars per ounce)
Dec 2008 774 679 591
Sept 2008 909 855 680
Financial year to date 834 756 629
Operating costs
(dollars per ton)
Dec 2008 35 72 56
Sept 2008 43 91 74
Financial year to date 38 80 64
Financial Results
($ million)
Revenue
Dec 2008 718.1 400.7 154.0
Sept 2008 739.5 428.5 179.6
Financial year to date 1,457.6 829.2 333.6
Operating costs, net
Dec 2008 450.0 239.0 86.4
Sept 2008 536.1 318.8 113.8
Financial year to date 986.1 557.8 200.2
- Operating costs
Dec 2008 452.6 239.0 86.4
Sept 2008 546.9 318.8 113.8
Financial year to date 999.5 557.8 200.2
- Gold inventory change
Dec 2008 (2.6) - -
Sept 2008 (10.8) - -
Financial year to date (13.4) - -
Operating profit
Dec 2008 268.1 161.7 67.6
Sept 2008 203.4 109.7 65.8
Financial year to date 471.5 271.4 133.4
Amortisation of
mining assets #
Dec 2008 100.1 47.6 14.2
Sept 2008 111.6 59.7 18.0
Financial year to date 211.8 107.3 32.2
Net operating profit
Dec 2008 168.0 114.1 53.4
Sept 2008 91.7 49.9 47.8
Financial year to date 259.7 164.0 101.2
Other income/(expenses)
Dec 2008 (18.4) (9.4) (5.2)
Sept 2008 (17.0) (10.2) (3.9)
Financial year to date (35.4) (19.7) (9.1)
Profit before taxation
Dec 2008 149.6 104.7 48.2
Sept 2008 74.7 39.7 43.9
Financial year to date 224.3 144.4 92.1
Mining and income taxation
Dec 2008 49.4 33.1 16.5
Sept 2008 36.6 19.5 14.9
Financial year to date 85.9 52.7 31.4
- Normal taxation
Dec 2008 12.3 11.9 11.5
Sept 2008 25.0 8.8 8.6
Financial year to date 37.3 20.7 20.1
- Deferred taxation
Dec 2008 37.0 21.3 5.0
Sept 2008 11.6 10.7 6.3
Financial year to date 48.6 31.9 11.3
Profit before
exceptional items
Dec 2008 100.2 71.6 31.7
Sept 2008 38.2 20.1 29.0
Financial year to date 138.3 91.6 60.6
Exceptional items
Dec 2008 (1.4) (1.2) -
Sept 2008 14.9 14.9 0.2
Financial year to date 13.6 13.7 0.2
Net profit
Dec 2008 98.9 70.4 31.7
Sept 2008 53.1 35.0 29.2
Financial year to date 152.0 105.3 60.8
Net profit excluding
gains and losses on
foreign exchange and
exceptional items
Dec 2008 104.8 69.3 31.7
Sept 2008 49.9 26.1 29.1
Financial year to date 154.7 95.5 60.8
Capital expenditure
Dec 2008 238.5 91.2 25.7
Sept 2008 232.9 101.8 26.8
Financial year to date 471.4 193.0 52.6
Planned for next six
months to June 2009 389.8 208.8 60.1
South African Operations
Kloof Beatrix South Deep
Operating Results
Ore milled/treated (000 tons)
Dec 2008 768 798 284
Sept 2008 971 790 191
Financial year to date 1,739 1,588 475
Yield (ounces per ton)
Dec 2008 0.197 0.134 0.167
Sept 2008 0.161 0.128 0.143
Financial year to date 0.177 0.131 0.157
Gold produced (000 ounces)
Dec 2008 151.7 106.7 47.3
Sept 2008 156.6 101.5 27.3
Financial year to date 308.3 208.2 74.6
Gold sold (000 ounces)
Dec 2008 151.7 106.7 47.3
Sept 2008 156.6 101.5 27.3
Financial year to date 308.3 208.2 74.6
Gold price received
(dollars per ounce)
Dec 2008 805 813 806
Sept 2008 874 870 871
Financial year to date 834 840 853
Total cash cost
(dollars per ounce)
Dec 2008 496 459 567
Sept 2008 618 607 1,365
Financial year to date 550 524 843
Notional cash expenditure
(dollars per ounce)
Dec 2008 687 620 1,147
Sept 2008 844 830 2,328
Financial year to date 756 712 1,564
Operating costs
(dollars per ton)
Dec 2008 102 64 99
Sept 2008 105 82 205
Financial year to date 102 72 139
Financial Results
($ million)
Revenue
Dec 2008 120.3 86.6 39.8
Sept 2008 136.9 88.2 23.8
Financial year to date 257.2 174.8 63.6
Operating costs, net
Dec 2008 76.0 49.7 26.9
Sept 2008 101.5 64.4 39.2
Financial year to date 177.5 114.1 66.1
- Operating costs
Dec 2008 76.0 49.7 26.9
Sept 2008 101.5 64.4 39.2
Financial year to date 177.5 114.1 66.1
- Gold inventory change
Dec 2008 - - -
Sept 2008 - - -
Financial year to date - - -
Operating profit
Dec 2008 44.3 36.9 12.9
Sept 2008 35.4 23.8 (15.4)
Financial year to date 79.7 60.7 (2.5)
Amortisation of
mining assets #
Dec 2008 15.8 11.2 6.4
Sept 2008 22.6 12.8 6.3
Financial year to date 38.3 24.0 12.8
Net operating profit
Dec 2008 28.5 25.7 6.5
Sept 2008 12.8 11.0 (21.7)
Financial year to date 41.3 36.7 (15.2)
Other income/(expenses)
Dec 2008 (4.4) (0.5) 0.7
Sept 2008 (3.1) (1.3) (2.0)
Financial year to date (7.5) (1.8) (1.3)
Profit before taxation
Dec 2008 24.1 25.2 7.2
Sept 2008 9.7 9.7 (23.7)
Financial year to date 33.9 34.9 (16.5)
Mining and income taxation
Dec 2008 4.7 9.5 2.4
Sept 2008 4.2 4.1 (3.6)
Financial year to date 8.9 13.6 (1.2)
- Normal taxation
Dec 2008 0.3 - -
Sept 2008 0.2 - -
Financial year to date 0.6 - -
- Deferred taxation
Dec 2008 4.4 9.5 2.4
Sept 2008 4.0 4.0 (3.6)
Financial year to date 8.3 13.5 (1.2)
Profit before
exceptional items
Dec 2008 19.4 15.7 4.8
Sept 2008 5.5 5.7 (20.1)
Financial year to date 24.9 21.4 (15.3)
Exceptional items
Dec 2008 - - (1.2)
Sept 2008 - - 14.6
Financial year to date - - 13.5
Net profit
Dec 2008 19.4 15.7 3.6
Sept 2008 5.5 5.7 (5.4)
Financial year to date 24.9 21.4 (1.8)
Net profit excluding
gains and losses on
foreign exchange and
exceptional items
Dec 2008 19.4 15.7 2.6
Sept 2008 5.5 5.7 (14.2)
Financial year to date 24.9 21.4 (11.6)
Capital expenditure
Dec 2008 24.9 14.4 26.2
Sept 2008 30.8 19.8 24.4
Financial year to date 55.7 34.2 50.6
Planned for next six
months to June 2009 55.1 31.8 61.8
Average exchange rates were US$1 = R9.82 and US$1 = R7.74 for the December
2008
and September 2008 quarters respectively. The Australian dollar exchange
rates
were A$1 = R6.70 and A$1 = R6.97 for the December 2008 and September 2008
quarters respectively.
Operating and financial results
UNITED STATES DOLLARS
International Operations
Ghana Peru
Cerro
Total Tarkwa Damang Corona
Operating Results
Ore milled/treated
(000 tons)
Dec 2008 9,892 5,384 1,216 1,199
Sept 2008 9,210 5,507 1,137 441
Financial year to date 19,102 10,891 2,353 1,640
Yield (ounces per ton)
Dec 2008 0.041 0.026 0.041 0.051
Sept 2008 0.040 0.028 0.039 0.028
Financial year to date 0.040 0.027 0.040 0.045
Gold produced
(000 ounces)
Dec 2008 405.0 139.3 50.4 61.5
Sept 2008 366.1 156.3 44.0 12.4
Financial year to date 771.1 295.6 94.5 74.0
Gold sold (000 ounces)
Dec 2008 409.0 139.3 50.4 65.5
Sept 2008 353.7 156.3 44.0 -
Financial year to date 762.6 295.6 94.5 65.5
Gold price received
(dollars per ounce)
Dec 2008 775 823 802 614
Sept 2008 879 870 868 -
Financial year to date 824 839 836 614
Total cash cost
(dollars per ounce)
Dec 2008 507 563 622 355
Sept 2008 616 548 790 -
Financial year to date 556 553 696 355
Notional cash expenditure
(dollars per ounce)
Dec 2008 891 1,078 753 1,201
Sept 2008 981 1,029 895 2,289
Financial year to date 934 1,048 818 1,457
Operating costs
(dollars per ton)
Dec 2008 22 16 28 18
Sept 2008 25 16 31 15
Financial year to date 23 16 30 18
Financial Results
($ million)
Revenue
Dec 2008 317.5 112.1 40.7 40.2
Sept 2008 311.0 136.0 38.2 -
Financial year to date 628.5 248.1 78.9 40.2
Operating costs, net
Dec 2008 211.0 78.1 31.7 25.6
Sept 2008 217.3 85.8 34.9 (2.6)
Financial year to date 428.3 163.9 66.6 23.0
- Operating costs
Dec 2008 213.6 84.4 34.4 23.2
Sept 2008 228.1 89.0 35.5 6.8
Financial year to date 441.7 173.3 69.9 30.0
- Gold inventory change
Dec 2008 (2.6) (6.3) (2.7) 2.4
Sept 2008 (10.8) (3.2) (0.6) (9.4)
Financial year to date (13.4) (9.5) (3.3) (7.0)
Operating profit
Dec 2008 106.4 34.1 9.0 14.7
Sept 2008 93.7 50.2 3.3 2.6
Financial year to date 200.1 84.2 12.3 17.3
Amortisation of
mining assets #
Dec 2008 52.5 14.1 4.6 9.9
Sept 2008 51.9 15.6 3.3 4.0
Financial year to date 104.4 29.7 7.8 13.9
Net operating profit
Dec 2008 53.9 20.0 4.4 4.8
Sept 2008 41.8 34.6 0.1 (1.4)
Financial year to date 95.7 54.6 4.5 3.3
Other income/(expenses)
Dec 2008 (9.0) (6.1) (2.0) (1.0)
Sept 2008 (6.8) (4.7) (1.8) (1.6)
Financial year to date (15.8) (10.9) (3.8) (2.7)
Profit before taxation
Dec 2008 44.9 13.8 2.5 3.7
Sept 2008 35.0 29.9 (1.7) (3.1)
Financial year to date 79.9 43.7 0.7 0.7
Mining and income taxation
Dec 2008 16.2 4.9 1.3 0.2
Sept 2008 17.1 11.0 0.4 0.2
Financial year to date 33.3 15.9 1.7 0.4
- Normal taxation
Dec 2008 0.4 (4.2) 1.2 0.3
Sept 2008 16.1 11.6 1.1 -
Financial year to date 16.6 7.4 2.4 0.3
- Deferred taxation
Dec 2008 15.8 9.1 0.1 -
Sept 2008 0.9 (0.7) (0.7) 0.2
Financial year to date 16.7 8.4 (0.7) 0.1
Profit before
exceptional items
Dec 2008 28.7 8.9 1.2 3.5
Sept 2008 18.0 18.9 (2.1) (3.2)
Financial year to date 46.6 27.8 (0.9) 0.3
Exceptional items
Dec 2008 (0.2) - - -
Sept 2008 - - - -
Financial year to date (0.1) - - -
Net profit
Dec 2008 28.5 8.9 1.2 3.5
Sept 2008 18.0 18.9 (2.1) (3.2)
Financial year to date 46.6 27.8 (0.9) 0.3
Net profit excluding
gains and losses on
foreign exchange,
financial instruments
and exceptional items
Dec 2008 35.4 13.5 2.4 3.5
Sept 2008 23.8 21.7 (1.1) (3.2)
Financial year to date 59.2 35.2 1.3 0.3
Capital expenditure
Dec 2008 147.3 64.6 3.4 56.1
Sept 2008 131.0 71.8 3.9 21.7
Financial year to date 278.4 136.3 7.3 77.8
Planned for next six
months to June 2009 181.1 72.4 8.4 40.1
# 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.
International Operations
Australia #
St Ives Agnew
Operating Results
Ore milled/treated
(000 tons)
Dec 2008 1,840 253
Sept 2008 1,817 308
Financial year to date 3,657 561
Yield (ounces per ton)
Dec 2008 0.059 0.178
Sept 2008 0.056 0.170
Financial year to date 0.057 0.173
Gold produced
(000 ounces)
Dec 2008 108.7 45.0
Sept 2008 101.2 52.2
Financial year to date 209.8 97.3
Gold sold (000 ounces)
Dec 2008 108.7 45.0
Sept 2008 101.2 52.2
Financial year to date 209.8 97.3
Gold price received
(dollars per ounce)
Dec 2008 814 827
Sept 2008 892 891
Financial year to date 850 850
Total cash cost
(dollars per ounce)
Dec 2008 551 371
Sept 2008 708 494
Financial year to date 620 426
Notional cash expenditure
(dollars per ounce)
Dec 2008 679 552
Sept 2008 986 588
Financial year to date 813 564
Operating costs
(dollars per ton)
Dec 2008 31 67
Sept 2008 40 79
Financial year to date 35 72
Financial Results
($ million)
Revenue
Dec 2008 88.2 36.2
Sept 2008 90.2 46.6
Financial year to date 178.5 82.7
Operating costs, net
Dec 2008 59.8 15.9
Sept 2008 73.0 26.2
Financial year to date 132.8 42.1
- Operating costs
Dec 2008 55.6 16.1
Sept 2008 72.4 24.4
Financial year to date 127.9 40.5
- Gold inventory change
Dec 2008 4.2 (0.2)
Sept 2008 0.7 1.7
Financial year to date 4.9 1.5
Operating profit
Dec 2008 28.5 20.3
Sept 2008 17.2 20.4
Financial year to date 45.6 40.7
Amortisation of
mining assets #
Dec 2008 24.0
Sept 2008 29.0
Financial year to date 53.0
Net operating profit
Dec 2008 24.7
Sept 2008 8.6
Financial year to date 33.3
Other income/(expenses)
Dec 2008 0.1
Sept 2008 1.4
Financial year to date 1.5
Profit before taxation
Dec 2008 24.9
Sept 2008 9.9
Financial year to date 34.8
Mining and income taxation
Dec 2008 9.8
Sept 2008 5.5
Financial year to date 15.3
- Normal taxation
Dec 2008 3.1
Sept 2008 3.4
Financial year to date 6.5
- Deferred taxation
Dec 2008 6.7
Sept 2008 2.1
Financial year to date 8.8
Profit before
exceptional items
Dec 2008 15.1
Sept 2008 4.4
Financial year to date 19.5
Exceptional items
Dec 2008 (0.2)
Sept 2008 -
Financial year to date (0.1)
Net profit
Dec 2008 14.9
Sept 2008 4.4
Financial year to date 19.4
Net profit excluding
gains and losses on
foreign exchange,
financial instruments
and exceptional items
Dec 2008 16.1
Sept 2008 6.4
Financial year to date 22.5
Capital expenditure
Dec 2008 15.2 8.1
Sept 2008 27.4 6.3
Financial year to date 42.6 14.4
Planned for next six
months to June 2009 40.2 20.0
International Operations
Australian Dollars
Australia #
St Ives Agnew
Operating Results
Ore milled/treated
(000 tons)
Dec 2008 1,840 253
Sept 2008 1,817 308
Financial year to date 3,657 561
Yield (ounces per ton)
Dec 2008 0.059 0.178
Sept 2008 0.056 0.170
Financial year to date 0.057 0.173
Gold produced
(000 ounces)
Dec 2008 108.7 45.0
Sept 2008 101.2 52.2
Financial year to date 209.8 97.3
Gold sold (000 ounces)
Dec 2008 108.7 45.0
Sept 2008 101.2 52.2
Financial year to date 209.8 97.3
Gold price received
(dollars per ounce)
Dec 2008 1,193 1,212
Sept 2008 990 990
Financial year to date 1,095 1,095
Total cash cost
(dollars per ounce)
Dec 2008 807 543
Sept 2008 786 548
Financial year to date 798 548
Notional cash expenditure
(dollars per ounce)
Dec 2008 996 809
Sept 2008 1,095 653
Financial year to date 1,046 726
Operating costs
(dollars per ton)
Dec 2008 46 98
Sept 2008 44 88
Financial year to date 45 93
Financial Results
($ million)
Revenue
Dec 2008 129.5 54.8
Sept 2008 100.2 51.7
Financial year to date 229.8 106.5
Operating costs, net
Dec 2008 89.9 25.1
Sept 2008 81.1 29.1
Financial year to date 171.0 54.1
- Operating costs
Dec 2008 84.3 25.0
Sept 2008 80.4 27.1
Financial year to date 164.7 52.2
- Gold inventory change
Dec 2008 5.5 0.1
Sept 2008 0.7 1.9
Financial year to date 6.3 2.0
Operating profit
Dec 2008 39.7 29.7
Sept 2008 19.1 22.7
Financial year to date 58.8 52.4
Amortisation of
mining assets #
Dec 2008 36.0
Sept 2008 32.2
Financial year to date 68.2
Net operating profit
Dec 2008 33.3
Sept 2008 9.5
Financial year to date 42.9
Other income/(expenses)
Dec 2008 0.4
Sept 2008 1.5
Financial year to date 1.9
Profit before taxation
Dec 2008 33.8
Sept 2008 11.0
Financial year to date 44.8
Mining and income taxation
Dec 2008 13.6
Sept 2008 6.1
Financial year to date 19.7
- Normal taxation
Dec 2008 4.6
Sept 2008 3.8
Financial year to date 8.4
- Deferred taxation
Dec 2008 9.0
Sept 2008 2.4
Financial year to date 11.4
Profit before
exceptional items
Dec 2008 20.2
Sept 2008 4.9
Financial year to date 25.1
Exceptional items
Dec 2008 (0.2)
Sept 2008 -
Financial year to date (0.2)
Net profit
Dec 2008 20.0
Sept 2008 4.9
Financial year to date 24.9
Net profit excluding
gains and losses on
foreign exchange,
financial instruments
and exceptional items
Dec 2008 21.8
Sept 2008 7.1
Financial year to date 28.9
Capital expenditure
Dec 2008 24.4 11.5
Sept 2008 30.4 7.0
Financial year to date 54.8 18.5
Planned for next six
months to June 2009 58.7 29.3
# 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.
* Gold produced and gold sold, together with the calculations of total cash
cost and notional cash expenditure, are based on equivalent ounces. As
equivalent ounces distort the gold price and yield at Cerro Corona these have
been excluded and detail of the individual gold and copper physicals is given
in the Cerro Corona commentary. Group gold price and yield excludes Cerro
Corona.
Underground and surface
South African rand and metric units
Operating Results
South African Operations
Total Mine
Operations Total Driefontein Kloof
Ore milled /
treated (000 ton)
- underground
Dec 2008 2,900 2,411 751 614
Sept 2008 2,698 2,277 724 603
Financial year to date 5,598 4,688 1,475 1,217
- surface
Dec 2008 10,450 1,047 857 154
Sept 2008 10,000 1,211 812 368
Financial year to date 20,450 2,258 1,669 522
- total
Dec 2008 13,350 3,458 1,608 768
Sept 2008 12,698 3,488 1,536 971
Financial year to date 26,048 6,946 3,144 1,739
Yield (grams per ton)
- underground
Dec 2008 6.2 6.2 7.4 7.5
Sept 2008 6.3 6.4 8.1 7.7
Financial year to date 6.2 6.3 7.8 7.6
- surface
Dec 2008 1.0 0.6 0.6 0.6
Sept 2008 1.0 0.7 0.7 0.7
Financial year to date 1.0 0.7 0.6 0.7
- combined
Dec 2008 2.1 4.5 3.8 6.1
Sept 2008 2.1 4.4 4.2 5.0
Financial year to date 2.1 4.4 4.0 5.5
Gold produced (kilograms)
- underground
Dec 2008 17,899 14,915 5,591 4,620
Sept 2008 16,915 14,467 5,873 4,626
Financial year to date 34,814 29,382 11,464 9,246
- surface
Dec 2008 10,269 656 472 97
Sept 2008 9,777 837 555 245
Financial year to date 20,046 1,493 1,027 342
- total
Dec 2008 28,168 15,571 6,063 4,717
Sept 2008 26,692 15,304 6,428 4,871
Financial year to date 54,860 30,875 12,491 9,588
Operating costs
(Rand per ton)
- underground
Dec 2008 953 973 1,081 1,233
Sept 2008 1,008 1,038 1,127 1,241
Financial year to date 979 1,005 1,103 1,237
- surface
Dec 2008 170 79 76 103
Sept 2008 151 85 80 100
Financial year to date 161 83 78 101
- total
Dec 2008 340 703 545 1,006
Sept 2008 333 707 573 809
Financial year to date 337 705 559 896
South African Operations
South
Beatrix Deep# Total
Ore milled /
treated (000 ton)
- underground
Dec 2008 798 248 489
Sept 2008 790 160 421
Financial year to date 1,588 408 910
- surface
Dec 2008 - 36 9,403
Sept 2008 - 31 8,789
Financial year to date - 67 18,192
- total
Dec 2008 798 284 9,892
Sept 2008 790 191 9,210
Financial year to date 1,588 475 19,102
Yield (grams per ton)
- underground
Dec 2008 4.2 6.8 6.1
Sept 2008 4.0 5.1 5.8
Financial year to date 4.1 6.0 6.0
- surface
Dec 2008 - 1.1 1.0
Sept 2008 - 1.2 1.0
Financial year to date - 1.1 1.0
- combined
Dec 2008 4.2 6.2 1.3
Sept 2008 4.0 4.5 1.2
Financial year to date 4.1 5.4 1.3
Gold produced (kilograms)
- underground
Dec 2008 3,320 1,384 2,984
Sept 2008 3,156 812 2,448
Financial year to date 6,476 2,196 5,432
- surface
Dec 2008 - 87 9,613
Sept 2008 - 37 8,940
Financial year to date - 124 18,553
- total
Dec 2008 3,320 1,471 12,597
Sept 2008 3,156 849 11,388
Financial year to date 6,476 2,320 23,985
Operating costs
(Rand per ton)
- underground
Dec 2008 630 1,109 853
Sept 2008 631 1,884 843
Financial year to date 631 1,413 848
- surface
Dec 2008 - 53 180
Sept 2008 - 55 161
Financial year to date - 54 171
- total
Dec 2008 630 975 214
Sept 2008 631 1,587 192
Financial year to date 631 1,221 203
International Operations
Ghana Peru
Cerro
Tarkwa Damang Corona
Ore milled /
treated (000 ton)
- underground
Dec 2008 - - -
Sept 2008 - - -
Financial year to date - - -
- surface
Dec 2008 5,384 1,216 1,199
Sept 2008 5,507 1,137 441
Financial year to date 10,891 2,353 1,640
- total
Dec 2008 5,384 1,216 1,199
Sept 2008 5,507 1,137 441
Financial year to date 10,891 2,353 1,640
Yield (grams per ton)
- underground
Dec 2008 - - -
Sept 2008 - - -
Financial year to date - - -
- surface
Dec 2008 0.8 1.3 1.6
Sept 2008 0.9 1.2 0.9
Financial year to date 0.8 1.2 1.4
- combined
Dec 2008 0.8 1.3 1.6
Sept 2008 0.9 1.2 0.9
Financial year to date 0.8 1.2 1.4
Gold produced (kilograms)
- underground - - -
Dec 2008
Sept 2008 - - -
Financial year to date - - -
- surface
Dec 2008 4,333 1,569 1,914
Sept 2008 4,860 1,369 387
Financial year to date 9,193 2,938 2,301
- total
Dec 2008 4,333 1,569 1,914
Sept 2008 4,860 1,369 387
Financial year to date 9,193 2,938 2,301
Operating costs
(Rand per ton)
- underground
Dec 2008 - - -
Sept 2008 - - -
Financial year to date - - -
- surface
Dec 2008 155 279 176
Sept 2008 125 242 120
Financial year to date 140 261 161
- total
Dec 2008 155 279 176
Sept 2008 125 242 120
Financial year to date 140 261 161
International Operations
Australia
St Ives Agnew
Ore milled /
treated (000 ton)
- underground
Dec 2008 329 160
Sept 2008 245 176
Financial year to date 574 336
- surface
Dec 2008 1,511 93
Sept 2008 1,572 132
Financial year to date 3,083 225
- total
Dec 2008 1,840 253
Sept 2008 1,817 308
Financial year to date 3,657 561
Yield (grams per ton)
- underground
Dec 2008 5.2 8.0
Sept 2008 4.2 8.1
Financial year to date 4.7 8.1
- surface
Dec 2008 1.1 1.2
Sept 2008 1.4 1.5
Financial year to date 1.2 1.4
- combined
Dec 2008 1.8 5.5
Sept 2008 1.7 5.3
Financial year to date 1.8 5.4
Gold produced (kilograms)
- underground
Dec 2008 1,699 1,285
Sept 2008 1,023 1,425
Financial year to date 2,722 2,710
- surface
Dec 2008 1,681 116
Sept 2008 2,124 200
Financial year to date 3,805 316
- total
Dec 2008 3,380 1,401
Sept 2008 3,147 1,625
Financial year to date 6,527 3,026
Operating costs
(Rand per ton)
- underground
Dec 2008 833 893
Sept 2008 828 863
Financial year to date 831 877
- surface
Dec 2008 191 253
Sept 2008 227 282
Financial year to date 210 271
- total
Dec 2008 306 658
Sept 2008 308 614
Financial year to date 307 634
# December quarter includes 43,000 tons (September quarter 3,000 tons) of
waste
processed from underground. In order to show the yield based on ore mined,
the
calculation of the yield at South Deep only, excludes the underground waste.
Development results
Development values represent the actual results of sampling and no allowance
has been made for any adjustments which may be necessary when estimating ore
reserves. All figures below exclude shaft sinking metres.
Driefontein
December 2008 quarter
Carbon Main VCR
Reef Leader
Advanced (m) 1,440 838 1,191
Advanced on reef (m) 262 301 144
Sampled (m) 156 213 105
Channel width (cm) 40 46 67
Average value - (g/t) 33.0 11.3 11.7 1
- (cm.g/t) 1,317 520 782
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
Year to date F2009
Carbon Main VCR
Reef Leader
Advanced (m) 2,891 1,847 2,559
Advanced on reef (m) 581 829 226
Sampled (m) 495 672 141
Channel width (cm) 35 43 54
Average value - (g/t) 37.1 11.4 15.1
- (cm.g/t) 1,305 492 816
Kloof December 2008 quarter
Reef Kloof Main VCR
Advanced (m) 153 631 5,070
Advanced on reef (m) 48 304 717
Sampled (m) 63 297 619
Channel width (cm) 175 140 115
Average value - (g/t) 4.0 4.7 22.7
- (cm.g/t) 710 661 2,626
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
Year to date F2009
Reef Kloof Main
VCR
Advanced (m) 334 1,670
10,603
Advanced on reef (m) 161 552
1,391
Sampled (m) 168 522
1,255
Channel width (cm) 189 109
125
Average value - (g/t) 3.8 6.0
18.8
- (cm.g/t) 719 655
2,338
Beatrix December 2008 quarter
Reef Beatrix
Kalkoenkrans
Advanced (m) 5,949
2,105
Advanced on reef (m) 1,664
144
Sampled (m) 1,278
123
Channel width (cm) 95
201
Average value - (g/t) 9.0
18.3
- (cm.g/t) 857
3,670
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
Year to date F2009
Reef Beatrix
Kalkoenkrans
Advanced (m) 12,978
4,336
Advanced on reef (m) 3,047
381
Sampled (m) 2,793
312
Channel width (cm) 101
131
Average value - (g/t) 7.4
19.9
- (cm.g/t) 748
2,601
South Deep December 2008 quarter
Reef Elsburg
Advanced (m) 2,180
Advanced on reef (m) 1,399
Sampled (m) 2,180
Channel width (cm) -2
Average value - (g/t) - 5.8
- (cm.g/t) - -3
September 2008 quarter
Reef Elsburg
Advanced (m) 1,289
Advanced on reef (m) 1,103
Sampled (m) 1,289
Channel width (cm) -2
Average value - (g/t) - 4.6
- (cm.g/t) - -3
Year to date F2009
Reef Elsburg
Advanced (m) 3,469
Advanced on reef (m) 2,502
Sampled (m) 3,469
Channel width (cm) -2
Average value - (g/t) - 5.4
- (cm.g/t) - -3
1) Less development at the higher grade 1, 4 and 5 shafts as a result of the
secondary support initiative, while lower grade development was done at 8
shaft.
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) 562 9742
Fax: (+27)(11) 562 9829
e-mail: cain.farrel@goldfields.co.za
Registered Offices
JOHANNESBURG
Gold Fields Limited
150 Helen Road
Sandown
Sandton
2196
Postnet Suite 252
Private Bag X30500
Houghton 2041
Tel: (+27)(11) 562 9700
Fax: (+27)(11) 562 9829
Secretaries Offices
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 Mellon
BNY Mellon Shareowner Services
P O Box 358516
Pittsburgh, PA15252-8516
US toll-free telephone: (1)(888) 269 2377
Tel: (+1) 201 680 6825
e-mail: shrrelations@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 Enquiries
WILLIE JACOBSZ
Tel: (+508) 358 0188
Mobile: (+857) 241 7127
e-mail: wjacobsz@gfexpl.com
NIKKI CATRAKILIS-WAGNER
Tel: (+27)(11) 562 9706
Mobile: (+27) (0) 83 309 6720
e-mail: nikki.catrakilis-wagner@goldfields.co.za
Media Enquiries
MARRITT CLAASSENS
Tel: (+27)(11) 562 9774
Mobile: (+27) (0) 82 307 3297
e-mail: marrittc@goldfields.co.za
Transfer Secretaries
South Africa
Computershare Investor Services
(Proprietary) Limited
Ground Floor
70 Marshall Street
Johannesburg, 2001
P O Box 61051
Marshalltown, 2107
Tel: (+27)(11) 370 5000
Fax: (+27)(11) 370 5271
United Kingdom
Capita Registrars
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
LISTINGS
JSE/NYSE/NASDAQ Dubai: GFI
NYX: GFLB
SWX: GOLI
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)
J G Hopwood
D N Murray
C I von Christierson
N J Holland *^(Chief Executive Officer)
G Marcus ^
D M J Ncube
G M Wilson
K Ansah #
R P Menell
R L Pennant-Rea *?
British # Ghanaian ^ Non-independent Director Independent Director
Date: 29/01/2009 08:00:02 Produced by the JSE SENS Department.
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information disseminated through SENS.
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