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GFI
GOGOF
GFI - Gold Fields - 3rd Quarter Results for Financial Year 2009
Gold Fields Limited
(Registration Number 1968/004880/06)
("Gold Fields " or "the Company")
JSE, NYSE, NASDAQ Dubai Share Code: GFI
NYX Code: GFLB, and SWX Code: GOLI
ISIN: ZAE000018123
EARNINGS BOOSTED BY HIGHER PRODUCTION AND GOLD PRICE
JOHANNESBURG. 7 May 2009, Gold Fields Limited (NYSE & JSE: GFI) today announced
headline earnings for the March 2009 quarter of R1,512 million, compared with
headline earnings of R484 million and R1,246 million for the December 2008 and
the March 2008 quarters respectively. In US dollar terms headline earnings for
the March 2009 quarter were US$163 million, compared with earnings of US$55
million and US$176 million for the December 2008 and the March 2008 quarters
respectively.
March 2009 quarter salient features:
* Attributable gold production increased 4 per cent to 871,000 ounces;
* Operating profit increased 55 per cent to R4.0 billion;
* Total cash costs decreased 2 per cent from R153,893 per kilogram (US$487 per
ounce) to R150,301 per kilogram (US$471 per ounce);
* Notional cash expenditure decreased 13 per cent from R244,210 per kilogram
(US$774 per ounce) to R213,403 per kilogram (US$668 per ounce);
* Mvela Gold subscribed for 15 per cent of GFI Mining South Africa (Pty) Limited
(GFIMSA) and exercised its right to use the GFIMSA shares to subscribe for 50
million new ordinary shares in Gold Fields Limited;
* Net debt decreased from R9.4 billion (US$970 million) to R7.7 billion (US$810
million);
* Liquidity improved by cost effective refinancing package.
Statement by Nick Holland, Chief Executive Officer of Gold Fields:
"During the quarter under review we remained focused on our strategy of turning
Gold Fields around, with a particular emphasis on achieving a step change in our
safety performance; whilst at the same time increasing the production base and
maintaining rigorous cost control aimed at improving the generation of free cash
flow.
We regret to report five fatalities during the quarter. However, the safety
performance of the Group continued to show an improving trend and F2009 thus far
is our best safety year ever. With only two months of the financial year
remaining at the time of writing this report, our fatalities for the year stand
at 13 compared to 47 during the prior financial year, with all other metrics
showing significant improvements.
The positive impact of the improvement in safety is felt throughout the Group
and reflects in the improved morale of our people.
We remain committed to eliminating all serious and fatal accidents on all of our
mines, as well as to our guiding principle of: "We will not mine if we cannot
mine safely".
Despite a very challenging March quarter, including the Christmas break in South
Africa, Gold Fields remains on a positive trajectory with production increasing
by 4 per cent in the quarter, and eight of our nine mines showing improvements
in production.
This follows an overall increase of 5 per cent in quarter two, bringing our
total production increase for the last two quarters to 10 per cent from the low
point experienced in the September 2008 quarter. We anticipate a further
increase of a similar size in the next quarter.
During the quarter under review, increased production at similar costs resulted
in an improved operating margin of 47 per cent, and positive cash flow
generation, which is a key component of our strategy of realising value for
shareholders.
Our operational performance for the quarter was negatively impacted by a poor
quarter at Beatrix and commissioning problems with the newly expanded CIL plant
at Tarkwa. By the end of the quarter many of the issues impacting the
performance of both mines had been addressed and significant improvements are
expected at both mines in the June quarter, which should bode well for the
overall performance of the Group."
Stock data
Number of shares in issue
- at end March 2009 704,237,969
- average for the quarter 669,602,482
Free Float 100%
ADR Ratio 1:1
Bloomberg / Reuters GFISJ / GFLJ.J
JSE Limited - (GFI)
Range - Quarter ZAR77.37 - ZAR123.50
Average Volume - Quarter 3,244,318 shares / day
NYSE - (GFI)
Range - Quarter US$7.94 - US$12.47
Average Volume - Quarter 9,350,542 shares / day
SOUTH AFRICAN RAND
Salient features
Nine months to
March March March
2008 2009 2008
Gold produced* 86,258 78,015 25,736
Total cash cost 106,902 152,500 122,920
Notional cash expenditure 177,464 227,745 201,181
Tons milled 37,356 39,326 12,376
Revenue 180,270 253,567 220,612
Operating costs 271 339 283
Operating profit 6,320 8,126 2,566
Operating margin 38 38 42
3,615 1,829 1,248
Net earnings
554 275 191
2,112 2,035 1,246
Headline earnings
324 305 191
Net earnings excluding
1,996 2,032 1,001
gains and losses on foreign
exchange, financial
instruments, exceptional
306 305 153
items and share of
profit/(loss) of associates
after taxation
Quarter
December March
2008 2009
Gold produced* 26,093 27,105 kg
Total cash cost 153,893 150,301 R/kg
Notional cash expenditure 244,210 213,403 R/kg
Tons milled 13,350 13,278 000
Revenue 250,058 289,095 R/kg
Operating costs 340 344 R/ton
Operating profit 2,566 3,986 Rm
Operating margin 36 47 %
483 1,307 Rm
Net earnings
74 195 SA c.p.s.
484 1,512 Rm
Headline earnings
74 225 SA c.p.s.
Net earnings excluding
542 1,369 Rm
gains and losses on foreign
exchange, financial
instruments, exceptional
83 204 SA c.p.s.
items and share of
profit/(loss) of associates
after taxation
UNITED STATES DOLLARS
Salient features
Quarter
March December
2009 2008
Gold produced* oz (000) 871 839
Total cash cost $/oz 471 487
Notional cash expenditure $/oz 668 774
Tons milled 000 13,278 13,350
Revenue $/oz 906 792
Operating costs $/ton 35 35
Operating profit $m 416 268
Operating margin % 47 36
$m 140 54
Net earnings
US c.p.s. 21 8
$m 163 55
Headline earnings
US c.p.s. 24 8
Net earnings excluding
$m 146 60
gains and losses on foreign
exchange, financial
instruments, exceptional
US c.p.s. 21 10
items and share of
profit/(loss) of associates
after taxation
Nine months to
March March March
2008 2009 2008
Gold produced* 827 2,508 2,773
Total cash cost 513 518 468
Notional cash expenditure 843 773 776
Tons milled 12,376 39,326 37,356
Revenue 921 861 789
Operating costs 38 37 38
Operating profit 347 887 886
Operating margin 42 38 38
167 200 508
Net earnings
26 30 78
176 222 301
Headline earnings
27 33 46
Net earnings excluding
137 222 281
gains and losses on foreign
exchange, financial
instruments, exceptional
21 33 43
items and share of
profit/(loss) of associates
after taxation
* Attributable - All companies wholly owned except for Ghana (71.1%) and Cerro
Corona (80.7%).
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, Ghana,
Australia, Peru and elsewhere; the ability to achieve anticipated efficiencies
and other cost savings in connection with past and future acquisitions,
exploration and development activities; decreases in the market price of gold or
copper; hazards associated with underground and surface gold mining; labour
disruptions; availability terms and deployment of capital or credit; changes in
government regulations, particularly environmental regulations; and new
legislation affecting mining and mineral rights; changes in exchange rates;
currency devaluations; inflation and other macro-economic factors, industrial
action, temporary stoppages of mines for safety reasons; 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.
Health and safety
We regret to report that there were five fatal injuries recorded for the quarter
at the South African operations. Substantial progress has been made during the
quarter to show an improvement in all the key safety indices. The fatal injury
frequency rate improved from 0.15 to 0.11 during the quarter. An improvement in
the lost day injury frequency rate of 4.92 to 4.78 was achieved and the serious
injury frequency rate reduced from 2.69 to 2.65. The year to date fatal injury
frequency rate has improved from 0.23 in the previous year to 0.09 in the
current year, the lost day injury frequency rate has improved from 8.06 to 4.12
and the serious injury frequency rate has improved from 4.32 to 2.50.
To maintain the recent gains achieved in the safety performance on the
operations, an initiative entitled "Safe production management" will be rolled
out in the new quarter to address safety systems, leadership behaviour and
communication. The Gold Fields Group remains committed to zero fatalities,
serious and lost day injuries and no disabling health incidents.
Financial review
Quarter ended 31 March 2009 compared with quarter ended 31 December 2008
Revenue
Attributable gold production for the March 2009 quarter amounted to 871,000
ounces compared with 839,000 ounces in the December quarter, an increase of 4
per cent. Production at the South African operations increased by 3 per cent
from 501,000 ounces to 517,000 ounces. Attributable gold production at the
international operations increased by 5 per cent from 338,000 ounces to 354,000
ounces.
At the South African operations the increase in gold production in the March
quarter was directly attributable to an increase in tonnage at Driefontein and
South Deep and an improved grade at Kloof. This increase was achieved despite
the Christmas break which had the usual impact on all of the South African
operations. At Driefontein gold production increased by 10 per cent quarter on
quarter due to increased underground tons and a drawdown of low grade
underground stockpiles. Gold production at Kloof increased by 15 per cent
compared with the December quarter due to clean-up of high grade backlog
accumulations. At Beatrix gold production decreased by 25 per cent. This very
poor quarter at Beatrix was impacted by lower mining volumes associated with
limited flexibility and a lower yield, which was impacted by lower than expected
mining quality factors.
At the international operations managed gold production at Tarkwa increased by 9
per cent due to the commissioning of the CIL plant expansion. At Damang, gold
production increased by 4 per cent due to an increase in volumes processed as a
result of improved blast fragmentation and improved plant availability. Gold
production from Australia was 3 per cent higher than the previous quarter. Agnew
increased by 10 per cent due to increased volumes from underground. Cerro Corona
produced 61,400 equivalent ounces and sold 65,300 equivalent ounces, which is
similar to the December quarter.
The average quarterly US dollar gold price achieved increased 14 per cent from
US$792 per ounce in the December quarter to US$906 per ounce in the March
quarter. The average rand/US dollar exchange rate of R9.93 was marginally weaker
than the R9.82 achieved in the December quarter. As a result of the above
factors the rand gold price strengthened from R250,058 per kilogram to R289,095
per kilogram, a 16 per cent increase. The Australian dollar gold price increased
from A$1,199 per ounce to A$1,378 per ounce as the US dollar strengthened
against the Australian dollar from 0.68 in the December quarter to 0.66 in the
March quarter, allied with the increase in the US dollar gold price.
The increase in the rand gold price achieved, together with the increase in
production, resulted in revenue of R8,510 million (US$869 million), an increase
of 20 per cent compared with the R7,074 million (US$718 million) achieved in the
December quarter.
Operating costs
Operating costs increased by less than 1 per cent despite a 4 per cent increase
in production, from R4,542 million (US$453 million) in the December quarter to
R4,567 million (US$457 million) in the March quarter. Total cash cost decreased
by 2 per cent from R153,893 per kilogram (US$487 per ounce) in the December
quarter to R150,301 per kilogram (US$471 per ounce) in the March quarter.
At the South African operations, operating costs increased marginally from
R2,430 million (US$239 million) to R2,434 million (US$243 million). This
increase was mainly due to overtime on maintenance work done during the
Christmas break and the annual senior official salary increases. Total cash cost
at the South African operations decreased by 4 per cent from R148,944 per
kilogram (US$472 per ounce) to R143,340 per kilogram (US$449 per ounce).
At the international operations, including gold-in-process movements, operating
costs in the March quarter were similar to the December quarter at US$210
million. Most operations reflected a decrease in costs quarter on quarter in
local currencies, and only Cerro Corona had a significant increase which was in
line with its increased mining and processing volumes. Total cash cost at the
international operations decreased by 2 per cent from US$507 per ounce in the
December quarter to US$497 per ounce in the March 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. The objective is to
provide the all-in costs for the Group, and for each operation. The NCE per
ounce is an important measure, as it determines how much free cash flow is
generated in order to pay taxation, interest, exploration and dividends.
The NCE for the Group for the March quarter amounted to R213,403 per kilogram
(US$668 per ounce) compared with R244,210 per kilogram (US$774 per ounce) in the
December quarter. NCE for the December quarter includes project expenditure at
Cerro Corona and Tarkwa.
At the South African operations the NCE decreased from R214,277 per kilogram
(US$679 per ounce) in the December quarter to R206,570 per kilogram (US$647 per
ounce) in the March quarter. At the international operations the NCE decreased
quarter on quarter from US$891 per ounce to US$694 per ounce.
Operating margin
The net effect of the changes in revenue and costs, after taking into account
gold-in-process movements, was a 55 per cent increase in operating profit from
R2,566 million (US$268 million) to R3,986 million (US$416 million). The Group
operating margin was 47 per cent compared with 36 per cent in the December
quarter. The margin at the South African operations increased from 39 per cent
to 48 per cent, while the margin at the international operations increased from
33 per cent to 46 per cent.
Amortisation
Amortisation increased from R1,033 million (US$104 million) in the December
quarter to R1,141 million (US$115 million) in the March quarter. At the South
African operations amortisation increased from R480 million (US$48 million) to
R521 million (US$52 million) in line with the increased production at
Driefontein, Kloof and South Deep. At the international operations amortisation
increased from R515 million (US$53 million) to R583 million (US$59 million).
This was mainly due to the increase at Cerro Corona, due to the increased
production, as well as the increase at Tarkwa due to increased production and
amortisation of the new CIL plant.
Other
Net interest paid at R164 million (US$17 million) was similar to the December
quarter. In the March quarter interest paid of R260 million (US$27 million) was
partly offset by interest received of R79 million (US$8 million) and interest
capitalised of R17 million (US$2 million). This compares with interest paid of
R240 million (US$24 million) partly offset by interest received of R46 million
(US$5 million) and interest capitalised of R30 million (US$3 million) in the
December quarter.
The share of profit of associates after taxation of R21 million (US$3 million)
in the March quarter compares with the share of losses of R47 million (US$4
million) in the December quarter. This improvement relates largely to equity
accounted gains incurred at Rand Refinery compared with equity accounted losses
at Rusoro in the December quarter.
The gain on foreign exchange of R129 million (US$14 million) in the March
quarter compares with a gain of R46 million (US$5 million) in the December
quarter. The gain in the March quarter relates to exchange gains on the
repayment of Australian dollar intercompany loans. 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 and an unrealised gain from
translating the offshore insurance captive into its functional currency.
The loss on financial instruments decreased from R66 million (US$7 million) in
the December quarter to R5 million (US$nil million) in the March quarter. The
loss in the March quarter was due to marked to market losses on the balance of
the diesel hedges in Ghana and Australia. The loss in the December quarter was
mainly due to the marked to market losses on diesel hedges in Ghana and
Australia, which amounted to R52 million (US$5 million) and R17 million (US$2
million) respectively.
Share-based payments amounted to R95 million (US$10 million) in the March
quarter, which was similar to the December quarter.
Other costs decreased from R52 million (US$6 million) in the December quarter to
R41 million (US$4 million) in the March quarter.
Exploration
Exploration expenditure was in line with the December quarter at R134 million
(US$14 million). Refer to the Exploration and Corporate Development section for
more detail.
Exceptional items
The exceptional loss in the March quarter amounted to R203 million (US$23
million) which was mainly due to a loss on the exchange of Orezone shares for
IAMGold shares as a result of the conclusion of a takeover offer for Orezone.
The loss of R5 million (US$2 million) in the December quarter included both
finalisation of restructuring costs and a fire insurance claim at South Deep.
Taxation
Taxation for the quarter amounted to R943 million (US$99 million) compared with
R496 million (US$53 million) in the December quarter, in line with the increase
in operating profit. The tax expense 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 R1,307 million
(US$140 million) or 195 SA cents per share (US$0.21 per share), compared with
R483 million (US$54 million) or 74 SA cents per share (US$0.08 per share) in the
December quarter.
Headline earnings i.e. earnings less the after tax effect of asset sales,
impairments, the sale of investments and discontinued operations, amounted to
R1,512 million (US$163 million) or 225 SA cents per share (US$0.24 per share),
compared with earnings of R484 million (US$55 million) or 74 SA cents per share
(US$0.08 per share) in the December quarter.
Earnings excluding exceptional items as well as net gains and losses on foreign
exchange, financial instruments and profit/(losses) of associates after taxation
amounted to R1,369 million (US$146 million) or 204 SA cents per share (US$0.21
per share), compared with earnings of R542 million (US$60 million) or 83 SA
cents per share (US$0.10 per share) reported in the December quarter.
Cash flow
The cash inflow from operating activities for the quarter amounted to R2,947
million (US$328 million), compared with a cash inflow of R1,787 million (US$186
million) in the December quarter. This quarter on quarter increase of R1,160
million (US$142 million) was due to the increase in profit before tax and
exceptional items of R1,536 million (US$161 million) reflecting the higher gold
price and increased production. This was partly offset by an increase in
taxation paid of R313 million (US$157 million) mainly due to the half yearly tax
payments in South Africa.
Capital expenditure decreased from R2,345 million (US$239 million) in the
December quarter to R1,701 million (US$166 million) in the March quarter. This
decrease was mainly due to completion of the project phase of the Cerro Corona
project and the completion of the CIL expansion in Tarkwa in the December
quarter.
At the South African operations capital expenditure decreased from R907 million
(US$91 million) in the December quarter to R889 million (US$90 million) in the
March quarter. Expenditure on Ore Reserve Development (ORD) at Driefontein,
Kloof and Beatrix accounted for R119 million (US$12 million), R120 million
(US$12 million) and R72 million (US$7 million) respectively.
At the international operations capital expenditure decreased from R1,430
million (US$147 million) to R800 million (US$76 million). This was mainly due to
a decrease in capital expenditure of R308 million (US$37 million) at Cerro
Corona as the project phase was completed. In Ghana, expenditure at Tarkwa
decreased by R277 million (US$28 million) mainly due to the completion of the
CIL expansion. In Australia, at St Ives, capital expenditure decreased by R47
million (A$7 million) due to the completion of the project phase of the Cave
Rocks underground mine, which reached full production in the month of December
and the completion of the capital waste of the Grinder open pit during the
December quarter.
Net cash inflow from financing activities in the March quarter amounted to R94
million (US$12 million). Loans received in the March quarter amounted to R4.9
billion (US$497 million), mainly due to drawdowns on the facility to repay the
Mvela loan and to advance funds to Cerro Corona and Tarkwa. Loans repaid
amounted to R5.0 billion (US$498 million), mainly made up of a repayment of the
above mentioned facility as well as some of the South African loans.
In addition, an outside shareholder`s loan was received from IAMGold being their
share of loans advanced to Tarkwa.
To give effect to the maturity of the Mvela transaction, a series of cash flows
were effected during the quarter as follows: Gold Fields fully drew down on its
credit facility in order to repay the Mvela loan of R4.1 billion. Mvela then
used the proceeds from the loan repayment to subscribe for its 15 per cent
interest in GFIMSA by paying R4.1 billion to GFIMSA. The proceeds from Mvela
were then used to fully settle the abovementioned credit facility. Immediately
upon receipt of the GFIMSA shares, Mvela Gold exercised its right to use the
GFIMSA shares to subscribe for 50 million new ordinary shares in Gold Fields.
Net cash inflow for the quarter was R1,396 million (US$180 million) compared
with a net cash outflow of R895 million (US$92 million) in the December quarter.
After accounting for a positive translation adjustment of R88 million (negative
translation adjustment in dollar terms of US$24 million), the cash balance at
the end of March was R2,537 million (US$265 million). The cash balance at the
end of December was R1,054 million (US$109 million) a net increase of R1.5
billion (US$156 million) for the quarter.
Balance sheet (Investment and net debt)
Investments increased from R4,360 million (US$452 million) at 31 December 2008
to R5,107 million (US$534 million) at 31 March 2009. This increase was mainly
due to marked to market gains on the Gold Fields share portfolio. These marked
to market gains have been accounted for in equity.
Net debt (long-term loans plus current portion of long-term loans less cash and
deposits) has decreased from R9,354 million (US$970 million) at 31 December 2008
to R7,748 million (US$810 million) at 31 March 2009. This decrease in total debt
is as a result of the increase in cash and deposits of approximately R1.5
billion arising from an increase in operational profit and lower capital
expenditure.
In March Standard and Poor`s Ratings Services ("S&P") assigned Gold Fields an
investment grade credit rating of `BBB-/ A-3` long-term and short-term global
scale credit rating and `zaA/zaA-1` long-term and short-term South Africa
national scale credit rating. The outlook is stable.
Subsequent to quarter end on 8 April 2009, Gold Fields utilised this credit
rating to access the local commercial paper market and successfully raised R568
million. The company raised R90 million with a three-month maturity at a spread
of 70 basis points (bps) over 3-month JIBAR and R478 million with a six-month
maturity at a spread of 100 bps over 3-month JIBAR. The proceeds will be
utilised to partially refinance the R1 billion debt facility maturing in May.
The company`s intention was to take advantage of the liquidity and pricing in
the short-term as well as diversify sources of funding. The remainder of the
maturing debt will be funded through bank debt.
Over and above the commercial paper issuance, Gold Fields has secured two
additional bank facilities in the form of a R1.5 billion 5-year revolving credit
facility and a US$311 million syndicated a 2 year revolving credit facility.
The dollar denominated revolving credit facility bears interest at a margin of
275bps over LIBOR. The rand denominated revolving credit facility bears interest
at a margin of 295bps over JIBAR.
This refinancing strategy improves the debt maturity profile and provides
flexibility in terms of access to funding. Our intention however, remains to
reduce debt over the next 18 months.
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 per month to
an average of at least eight metres per month by the end of financial year 2010.
This should be achieved through the following key improvement initiatives:
* drilling and blasting practices;
* cleaning and sweeping practices;
* mining cycle and training;
* improved pay face availability.
The planned increase in face advance targets will improve underground
production, which will reflect in improved labour efficiencies, lower unit
mining costs and improved revenue. Although an improvement in safety is clearly
visible, improvement in quality volumes remains a challenge.
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. South Deep is
excluded as it is a fully mechanised mine. 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 year
2009, reaching 100 per cent by 30 June 2010.
During the March quarter, 39 per cent of flat-end development was achieved with
mechanised equipment. Unit cost, equipment efficiency and labour productivity
are improving as teams are gaining more confidence and experience with the
mechanised equipment. Safety improvements to date are very encouraging.
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 year 2010. This is to be achieved
by way of 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
year 2010. These savings are against the baseline consumption for the financial
year 2008 and driven by various initiatives.
Financial year to date savings amount to R56 million if compared with the same
period in financial 2008. The average power consumed for the quarter was 543.7
Megawatts, compared with an Eskom base line of 600.1 Megawatts. Financial
savings for the quarter if compared with the Eskom baseline amounts to R25
million. The average diesel consumption for the quarter was 26 per cent lower
than the baseline of 2.1 million litres.
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
financial 2010, from the current 13 per cent. A target of 2 per cent in each of
financial year 2009 and 2010 has been set. A 2 per cent reduction has been
achieved in the financial year to date largely due to reduced incidences of
industrial action and more diligent labour management.
The above-ground cost project aims to reduce surface costs by at least R100
million per annum. Various initiatives are in place.
Projects which reduced above ground cost were the following:
* Shared services - saving for the quarter was R10 million (year to date: R28
million). This saving was realised by optimisation of process, labour, discounts
received and inventory.
* Training expenditure - a much more focused strategy to service our core
business is in the process of being developed. Benefits of this re-aligned
strategy will be realised in financial year 2010.
* Hospital services - saving for the quarter was R1 million (year to date: R3
million). This saving was realised by optimisation of process.
On the supply chain side the impact of the global economic crisis effectively
stopped the rampant inflation recently experienced over various input
commodities, with decreases in amongst others copper, steel, fuel, explosives,
despite the weakening of the rand. The deflationary trend should continue over
the next quarter.
During the March quarter approximately R20 million strategic sourcing,
procurement and repairs/maintenance price and consumption related savings were
realised in fuel and copper rise-and-fall price reductions. Price reductions
were also negotiated across various steel, coal, chemical and explosive
products.
Part of the price related claw-back savings realised during the March quarter
were off-set by exchange rate fluctuations on grinding balls and inflationary
price increases in areas such as cement, lime, food and beverages (catering menu
improvements) and other services related labour rates. The decline in the
procurement basket as measured against the highs in the latter half of 2008
amount to approximately 6 per cent in Australia and South Africa, 2 per cent in
Peru and over 10 per cent in Ghana. Most of these benefits have been realised
during the March quarter.
Project 4M
Project 4M initiative focuses on the Mine Health and Safety Council (MHSC)
milestones agreed to on 15 June 2003. A tripartite health and safety summit
comprising representatives from Government, organised Labour Unions and
Associations and Mining employer groupings of 22 mining companies represents the
South African mining sector in its commitment to a policy of "zero" harm to
workers. The focus is on achieving occupational health and safety targets and
milestones over a 10-year period. The commitment was driven by the need to
achieve greater improvements in occupational health and safety in the mining
industry.
A business objective was set to try and ensure that the South African operations
comply with the ten-year milestones. As a result, various initiatives are in the
process of being implemented by our operations. The initiatives are based on
leading practices identified and researched by the Noise and Dust Task Teams and
other mining groups. The Chamber of Mines initiated, with the assistance of the
respective mining industries, the Noise and Dust Task Teams to assist the mines
with research data and the development of milestone implementation strategies.
Project 5M
Uranium Project
This project, which is designed to define the economic potential of processing a
selected number of Gold Fields` South African tailings dams and underground
resources for the recovery of uranium and the related by-products of gold and
sulphur, has made good progress during the quarter.
Drilling of the historical tailings storage facilities (TSFs) on the West Wits
operations has been completed. Resource profiles have been developed for gold,
uranium and sulphur for each of the TSFs and a mining and reclamation strategy
has been developed. A preliminary mining schedule has been finalised which takes
into account physical and geographic limitations. Over the next few months the
mining schedule will be optimised in parallel with the selection process for the
most suitable metallurgical treatment option and in conjunction with the
financial evaluation of the overall project.
The resource model for the TSFs has been completed. Following internal review
the model will be reviewed externally with a SAMREC compliant resource expected
to be completed by the end of this financial year.
Engineering and Projects Company is in the final stages of completing both the
feasibility study for the Driefontein run of mine tailings treatment operation
and the pre-feasibility study for the treatment of the historic TSFs. Internal
review is underway with an external peer review process scheduled for May 2009.
Both studies should be fully complete by the end of the financial year. A
detailed programme of laboratory and pilot plant test work is ongoing to assist
in optimising the plant process flow diagrams and design criteria.
Metago Environmental Engineers is preparing a feasibility study level document
on the new TSF required for the project. Site selection and preliminary design
to accommodate deposition of 750 million tons has been completed. The
preliminary design for the mining and pumping infrastructure required has also
been completed. Both the mining and pumping design and the tailings storage
facility design is currently being reviewed internally and will be subject to
external peer review. Good progress has been made with respect to the
environmental impact assessment and the permitting process. An external peer
review of the environmental issues associated with the project took place in the
third quarter and action plans have been formulated and are being implemented in
order to address and incorporate the outcomes of the review into the respective
elements of the project. All relevant government and regulatory bodies have been
identified and initial engagement meetings have taken place. The various scopes
of work for the technical investigations have been finalised and were submitted
to the relevant authorities during April 2009.
All project activities are on schedule to ensure the company can make a decision
to progress to a combined bankable level feasibility study by the end of June
2009. This study together with a full marketing analysis, scheduled to be
completed by the end of calendar 2009, will allow the Board to make a decision
in early 2010.
International operations
Integrated continuous improvement initiatives and strategic sourcing/contract
benefits achieved
Continued cost savings from contracted rise-and-fall mechanisms and cost
optimisation benefits were achieved across multiple initiatives during the March
quarter. Consolidated total cost benefits of around US$10 million were achieved
for the International operations for the quarter. Financial year 2009 year to
date cumulative total cost benefits are approximately US$26 million.
Australia
Diesel and steel rise-and-fall price reductions continued during the March
quarter and resulted in added cost reductions for Australia of around A$2
million. In addition, around A$3 million total cost benefits were achieved in
areas such as surface mining improvement initiatives, ground support competitive
price reductions, Kambalda private charter flight cost savings and water supply
cost recovery.
Ghana
Diesel rise-and-fall price reductions in Ghana generated around US$5 million
savings during the March quarter. In addition, about US$1 million benefits were
achieved in areas such as lubricants, road haulage and explosives price
reductions. The Tarkwa on-site explosives emulsion plant delivered benefits in
the March quarter of US$7 per ton and is estimated to deliver savings of around
US$300,000 on an annual basis.
Peru
During the March quarter various teams, in areas such as integrated supply
chain, logistics and concentrate distribution, focused on aligning critical
supply and services to operational demand.
South African operations
Mining Royalties
The Mineral and Petroleum Resources Royalty Act was published in the Government
Gazette No. 31635 of 24 November 2008. The implementation date of the royalty
has been postponed and the royalty will now only apply in respect of gold and
other minerals sold on or after 1 March 2010.
The royalty in respect of refined mineral resources (gold) is calculated by
multiplying the gross sales by the percentage determined in accordance with a
formula. The formula for refined minerals = 0.5 plus (earnings before interest
and taxes, "EBIT") divided by (gross sales multiplied by 12,5) calculated as a
percentage. EBIT constitutes taxable mining income before assessed losses but
after capital expenditure. A cap of 5 per cent has been introduced on refined
minerals.
The royalty in respect of unrefined minerals resources (Uranium) is calculated
by multiplying the gross sales by the percentage determined in accordance with
the unrefined minerals formula. The formula for unrefined minerals = 0.5 plus
(earnings before interest and taxes, "EBIT") divided by (gross sales multiplied
by 9) calculated as a percentage. A cap of 7 per cent has been introduced on
unrefined minerals.
Where unrefined minerals resources (uranium) constitutes less than 10 per cent
in value of the total composite mineral resources (the total gross sales of gold
and uranium combined), the royalty rate in respect of refined mineral resources
(gold) may be used for all gross sales and a separate calculation of earnings
before interest and taxes for each class of minerals resource is not required.
Driefontein
March December
2009 2008
Gold produced - kg 6,693 6,063
- 000`ozs 215.2 194.9
Yield - underground - g/t 7.1 7.4
- combined - g/t 4.4 3.8
Total cash cost - R/kg 122,680 137,886
- US$/oz 384 437
Notional cash expenditure - R/kg 168,729 186,459
- US$/oz 529 591
Gold production increased by 10 per cent from 6,063 kilograms (194,900 ounces)
in the December quarter to 6,693 kilograms (215,200 ounces) in the March quarter
due to increased underground volumes. Underground tonnage increased from 751,000
tons in the December quarter to 868,000 tons in the March quarter due to
increased volumes from 6 shaft and the milling of 105,000 tons of lower grade
Christmas stockpile made up of 6 shaft and 8 shaft material. Underground yield
decreased from 7.4 grams per ton to 7.1 grams per ton. Surface tonnage decreased
from 857,000 tons to 669,000 tons due to the displacement of surface material
with higher grade underground material. Surface yield increased from 0.6 grams
per ton in the December quarter to 0.8 grams per ton in the March quarter due to
the mining mix of surface sources.
Main development increased by 73 per cent for the quarter and on-reef
development increased by 54 per cent, mainly as a result of the completion of
the backlog secondary support programme. The average development value decreased
from 841cm.g/t in the December quarter to 791cm.g/t in the March quarter,
primarily due to lower values from secondary development in prospecting areas at
2 shaft and 8 shaft. Development in higher value areas was constrained by the
focus on the secondary support backlog programme.
Operating costs decreased from R877 million (US$86 million) to R868 million
(US$86 million). The decrease in operating cost is mainly attributable to an
increase in capitalisation of ore reserve development associated with an
increase in development. Total cash cost decreased 11 per cent from R137,886 per
kilogram (US$437 per ounce) to R122,680 per kilogram (US$384 per ounce).
Operating profit increased 63 per cent from R662 million (US$68 million) in the
December quarter to R1,080 million (US$112 million) in the March quarter.
Capital expenditure increased from R254 million (US$26 million) to R262 million
(US$26 million). The increase was mainly due to increased expenditure on
capitalised ore reserve development.
Notional cash expenditure decreased from R186,459 per kilogram (US$591 per
ounce) to R168,729 per kilogram (US$529 per ounce) due to the increase in gold
output and a decrease in operating costs partially offset by increased capital
expenditure.
The estimate for the June quarter is as follows:
* Gold produced - 6,800 kilograms (218,000 ounces)
* Total cash costs* - R129,000 per kilogram (US$445 per ounce)
* Capital expenditure* - R320 million (US$36 million)
* Notional cash expenditure* - R182,000 per kilogram (US$630 per ounce)
* Based on an exchange rate of US$1 = R9.00.
The increase in the gold production estimate is mainly due to improved volumes
from underground and surface at consistent values. Total cash cost is expected
to increase due to anticipated increase in electricity costs. The increased
capital expenditure is due to increased expenditure on the 4 shaft pillar
extraction project, the tailings uranium feasibility study, the water plant
project, housing upgrades and other sustaining projects.
Kloof
March December
2009 2008
Gold produced - kg 5,406 4,717
- 000`ozs 173.8 151.7
Yield - underground - g/t 9.8 7.5
- combined - g/t 7.8 6.1
Total cash cost - R/kg 133,796 156,689
- US$/oz 419 496
Notional cash expenditure - R/kg 182,612 216,981
- US$/oz 572 687
Gold production increased by 15 per cent from 4,717 kilograms (151,700 ounces)
in the December quarter to 5,406 kilograms (173,800 ounces) in the March
quarter. The increase in production was as a result of major clean-ups done
during the quarter which improved the Mine Call Factor. As a result of the work
stoppages due to safety and a slow start-up after the Christmas break, the
underground tonnage decreased from 614,000 tons to 543,000 tons. The decrease in
underground tonnage was offset by an increase in yield from 7.5 grams per ton to
9.8 grams per ton.
Total main development decreased by 23 per cent for the March quarter to 4.487
metres and on-reef development decreased by 34 per cent to 709 metres. In
addition to the safety related stoppages, the development performance was also
affected by crews assisting in backlog secondary support, construction and mud
loading. The average development value decreased by 11 per cent to 1,698 cm.g/t
in the March quarter due to a dip in grades on the Kloof Reef.
Operating costs decreased by 1 per cent from R773 million (US$76 million) in the
December quarter to R763 million (US$76 million) in the March quarter. The
decrease was mainly attributable to a reduction in underground volumes,
partially offset by a decrease in the capitalised Ore Reserve Development (ORD).
The higher gold output resulted in a 15 per cent decrease in total cash cost
from R156,689 per kilogram (US$496 per ounce) to R133,796 per kilogram (US$419
per ounce).
Operating profit increased from R426 million (US$44 million) in the December
quarter to R794 million (US$83 million) in the March quarter due to the increase
in gold production and the higher gold price.
Capital expenditure at R224 million (US$22 million) decreased by 11 per cent
compared with the previous quarter`s expenditure of R251 million (US$25
million). This decrease was mainly due to the Main shaft rehabilitation
programme work that was completed during December 2008 as planned.
Notional cash expenditure decreased by 16 per cent from R216,981 per kilogram
(US$687 per ounce) to R182,612 per kilogram (US$572 per ounce).
The estimate for the June quarter is as follows:
* Gold produced - 5,400 kilograms (174,000 ounces)
* Total cash cost* - R139,000 per kilogram (US$480 per ounce)
* Capital expenditure* - R255 million (US$28 million)
* Notional cash expenditure* - R193,000 per kilogram (US$665 per ounce)
* Based on an exchange rate of US$1 = R9.00
Gold production for the June quarter is estimated to be similar to the March
quarter due to further curtailments of pillar mining in the Main shaft area post
the fatal accidents in January and February of this year and safety stoppages as
part of the "stop, fix and continue campaign". Total cash cost per ounce should
increase in the June quarter as a result of the anticipated increase in
electricity costs. Capital expenditure is planned at around R255 million and
includes a number of new projects, including the 69 decline, as well as delivery
of new technology equipment and an increase in ORD.
Beatrix
March December
2009 2008
Gold produced - kg 2,489 3,320
- 80.0 106.7
000`ozs
Yield - g/t 4.0 4.2
Total cash cost - R/kg 193,532 144,759
- US$/oz 606 459
Notional cash expenditure - R/kg 259,622 195,723
- US$/oz 813 620
Gold production at Beatrix decreased by 25 per cent from 3,320 kilograms
(106,700 ounces) in the December quarter to 2,489 kilograms (80,000 ounces) in
the March quarter. Tons milled decreased from 798,000 tons to 629,000 tons as a
result of lower volumes achieved across the three main production shafts due to
limited flexibility, hoisting constraints as a result of a number of stoppages
due to electronic problems with 3 shaft`s rock winder and a slow start-up after
the Christmas break. Yield decreased from 4.2 grams per ton in the December
quarter to 4.0 grams per ton for the March quarter, mainly as a result of an
increase in stope width and lower values mined. Unpay panels have been stopped
and grades are expected to improve.
Development volumes showed a 10 per cent quarter on quarter reduction due to a
strong focus on safety that included cleaning of haulages, removing mud
accumulations and bringing construction work up to date. Total main development
decreased from 8,054 metres to 7,251 metres, main on-reef development decreased
from 1,808 metres to 1,765 metres and main off-reef metres decreased from 5,261
metres to 4,414 metres. The decrease in development values and metres is due to
a slow start up post the Christmas break and bringing equipping of development
ends up to standard, together with the cover drilling programme being behind
schedule, hoisting constraint at 3 shaft, electricity interruptions and delays
due to smectite, water and methane intersections. The main on-reef development
returned values of 819 cm.g/t for the quarter, compared with 1,104 cm.g/t for
the December quarter. Values are in line with the forecast as per the mining
schedule.
Operating costs increased from R503 million (US$50 million) in the December
quarter to R508 million (US$51 million) in the March quarter. The increase in
costs was mainly due to increased maintenance overtime worked over the Christmas
break, partially offset by lower bonuses due to the lower production. Total cash
cost increased by 34 per cent from R144,759 per kilogram (US$459 per ounce) in
the December quarter to R193,532 per kilogram in the March quarter (US$606 per
ounce).
Operating profit decreased by 39 per cent from R349 million (US$37 million) in
the December quarter to R213 million (US$21 million) in the March quarter.
Capital expenditure decreased by 5 per cent from R147 million (US$14 million) in
the December quarter to R139 million (US$14 million) in the March quarter mainly
due to lower ore reserve development.
Notional cash expenditure increased from R195,723 per kilogram (US$620 per
ounce) to R259,622 per kilogram (US$813 per ounce).
The estimate for the June quarter is as follows:
* Gold produced - 2,900 kilograms (93,000 ounces)
* Total cash cost* - R176,000 per kilogram (US$610 per ounce)
* Capital expenditure* - R175 million (US$20 million)
* Notional cash expenditure* - R245,000 per kilogram (US$845 per ounce)
* Based on an exchange rate of US$1 = R9.00.
Gold production is expected to improve in the June quarter as a result of
improved grades and volumes. Notional cash expenditure in the June quarter will
mainly be affected by an increase in electricity costs and increased capital
expenditure on drill rigs, which will be used for development and to open ore
reserves, offset by the increased production.
International operations
Ghana
Tarkwa
March December
2009 2008
Gold produced - 000`ozs 152.2 139.3
Yield - heap leach - g/t 0.8 0.6
- CIL plant - g/t 1.3 1.4
- combined - g/t 0.9 0.8
Total cash cost - US$/oz 503 563
Notional cash expenditure - US$/oz 778 1,078
Gold production increased by 9 per cent from 139,300 ounces in the December
quarter to 152,200 ounces in the March quarter as the CIL expansion commenced
its build-up to full production. This build-up is proving to be slower than
initially anticipated due to several commissioning problems experienced during
January and February. This includes the failure of the auxiliary stockpile feed
system which prevented the mill from being fed at design capacity causing major
blending problems, as well as process flow problems which choked the thickners
at the new plant. These problems have largely been resolved and the new plant
has been operating at an average of approximately 33,000 tons milled per day
from mid March, at times exceeding design capacity.
Total tons mined, including capital stripping, increased from 34.3 million tons
to 35.7 million tons. Ore mined decreased from 5.7 million tons in the December
quarter to 5.2 million tons in the March quarter as delays at the CIL plant
resulted in a build-up at the run of mine stockpiles, necessitating a switch
from ore to pre-strip mining during the quarter. The head grade of 1.13 grams
per ton decreased from last quarter`s 1.18 grams per ton as per the mine
schedule. The strip ratio achieved was 5.91 against the December quarter`s 5.01.
Total feed to the heap leach sections decreased from 4.01 million tons for the
December quarter to 2.84 million tons in the March quarter. This decline is
mainly due to the permanent cessation of stacking at the South heap leach pad.
Heap leach yield for the quarter increased to 0.8 grams per ton compared with
0.6 grams per ton due to the release of GIP at the South heap leach after
cessation of stacking at the South heap leach and an increase in ore directed to
the mill. The heap leach facilities produced 71,800 ounces, 11 per cent lower
than the 81,300 ounces produced in the December quarter.
The total feed to the CIL plant was 2.37 million tons compared with 1.37 million
tons in the December quarter. CIL yield was slightly lower at 1.3 grams per ton
compared with 1.4 grams per ton for the December quarter. The CIL plant produced
80,400 ounces in the March quarter compared with 58,000 ounces in the December
quarter.
Operating costs, including GIP movements, were US$2 million lower than the
December quarter at US$76 million (R761 million). The lower operating cost is
mainly due to the impact of lower power costs associated with a weaker local
currency and a reduction of fuel and explosive prices.
Operating profit at US$61 million (R594 million) in the March quarter compares
with US$34 million (R351 million) in the December quarter.
Capital expenditure decreased from US$65 million (R642 million) to US$34 million
(R364 million) for the quarter, with expenditure on the CIL plant (US$5
million), relocation of VRA substation (US$6 million) and pre-stripping at the
Teberebie cutback (US$17 million) being the major capital expenditure items for
the quarter.
Notional cash expenditure for the quarter was US$778 per ounce, against the
previous quarter`s US$1,078 per ounce, reflecting the lower capital expenditure
as a result of the completion of the CIL expansion.
The estimated for the June quarter is as follows:
* Gold produced - 170,000 ounces
* Total cash cost - US$500 per ounce
* Capital expenditure - US$33 million
* Notional cash expenditure - US$700 per ounce
The estimate increase in gold production is due to increased production from the
newly commissioned CIL plant expansion.
Damang
March December
2009 2008
Gold produced - 000`ozs 52.5 50.4
Yield - g/t 1.2 1.3
Total cash cost - US$/oz 643 622
Notional cash expenditure - US$/oz 669 753
Gold production increased 4 per cent from 50,400 ounces in the December quarter
to 52,500 ounces in the March quarter. This increase was mainly due to improved
blast fragmentation and plant availability, which in turn increased the mill
throughput from 1.2 million tons to 1.3 million tons.
Total tons mined, including capital stripping, increased by 4 per cent from 4.6
million tons in the December quarter to 4.8 million tons in the March quarter.
Ore mined decreased from 1.12 million tons to 1.05 million tons and the strip
ratio increased from 3.15 to 3.59 in line with the mine plan.
Operating costs, including gold-in-process movements, were similar at US$32
million. Although a decrease in power and fuel costs was realised, this was
offset by mining more expensive Damang pit cutback ounces. Total cash cost
increased from US$622 per ounce to US$643 per ounce reflecting the increased
strip ratio.
Operating profit for the March quarter amounted to US$16 million (R152 million)
compared with US$9 million (R83 million) achieved in the December quarter.
Capital expenditure at US$4 million (R37 million) was marginally higher than the
December quarter, with the majority of this expenditure on development at Rex
open pit.
Notional cash expenditure for the quarter was lower at US$669 per ounce compared
with the previous quarter`s US$753 per ounce mainly as a result of higher
production.
The estimate for the June quarter is as follows:
* Gold produced - 52,000 ounces
* Total cash costs - US$635 per ounce
* Capital expenditure - US$4 million
* Notional cash expenditure - US$715 per ounce
Peru
Cerro Corona
March December
2009 2008
Gold produced - 000`oz 31.8 26.1
Copper produced - tons 8,000 6,200
Total equivalent gold - 000` eq oz 61.4 61.5
produced
Total equivalent gold sold - 000` eq oz 65.3 65.5
Yield - gold - g/t 0.7 0.8
- copper - % 0.58 0.59
- combined - g/t 1.3 1.6
Total cash cost - US$/eq oz 422 355
Notional cash expenditure - US$/eq oz 762 1,201
Production of 61,400 equivalent ounces was recorded during the March quarter,
compared with 61,500 equivalent ounces in the December quarter. During the March
quarter concentrate with payable content of 35,600 ounces of gold was sold at an
average gold price of US$900 per ounce and 8,100 tons of copper were sold at an
average copper price of US$3,400 per ton, net of treatment and refining charges.
The table below demonstrates the production sensitivity impact of the copper and
gold price relationship on equivalent ounce calculations.
Guidance Actual Actual
at start production production June
of March determined and actual quarter
at
quarter guidance prices
prices forecast
Gold price - US$/oz 850 850 900 900
Copper price - US$/t 3,200 3,200 3,400 4,350
Gold produced - oz 34,600 31,800 31,800 32,000
Copper - tons 7,300 8,000 8,000 8,200
produced
Copper - oz 27,400 30,200 29,700 40,000
equivalent as
gold
Total gold - eq oz 62,000 61,900 61,400 72,000
equivalent
Gold equivalent = gold produced (ounces) plus {(copper produced (tons)
multiplied by copper price (US$ per ton)) divided by gold price (US$ per
ounce)}.
Total tons mined increased as planned from 1.74 million tons in the December
quarter to 2.52 million tons during the March quarter. Ore mined increased from
1.27 million tons to 1.57 million tons in order to fill the plant which had its
first full quarter of production. The overall strip ratio for the March quarter
was 0.61 compared with the life of mine strip ratio of 0.66
Ore processed increased from 1.20 million tons in the December quarter to 1.43
million tons in the March quarter, with concentrate production at 36,000 dry
metric tons in the March quarter compared with 33,000 dry metric tons in the
December quarter. Gold yield for the quarter was 0.70 grams per ton and copper
yield was 0.58 per cent compared with 0.80 grams per ton and 0.59 per cent in
the December quarter. Copper produced was higher due to an increase in oxidized
ore treated.
Operating costs including gold-in-process movements increased from US$26 million
(R222 million) in the December quarter to US$31 million (R289 million) in the
March quarter and total cash cost was reported at US$422 per equivalent ounce
sold compared with US$355 per equivalent ounce sold in the December quarter.
Operating profit was reported at US$32 million (R297 million) compared with
US$15 million (R131 million) in the December quarter.
Capital expenditure decreased from US$56 million (R515 million) in the December
quarter to US$19 million (R207 million) in the March quarter. The reduced
expenditure in the current quarter is due to the completion of the Cerro Corona
project phase in December of US$38 million and reduced expenditure on the Las
Aguilas Tailings Management facility. During March US$13 million was spent on
construction of the Las Aguilas Tailings Management Facility (TMF).
Notional cash expenditure for the March quarter at US$762 per equivalent ounce
compares with US$1,201 per equivalent ounce in the December quarter. Capital
expenditure of approximately US$20 million per quarter is expected to be
incurred until the end of F2010 due to the front-ending of the TMF. Thereafter,
sustaining capital is expected to decrease to approximately US$40 million per
annum.
Cash flow from operations for the quarter was US$12 million (R119 million),
compared with cash utilised in operations of US$24 million (R235 million) in the
December quarter. The positive cash from operations was a first for Cerro
Corona. To optimise the cash flow and minimise the effect on working capital,
all efforts are being made to keep concentrate stocks at a minimum level. At
quarter end concentrate stock on hand was 1,557 tons.
The estimate for the June 2009 quarter is as follows:
* Metals (gold and copper) produced - 72,000 equivalent ounces*
* Gold produced - 32,000 ounces
* Copper produced - 8,200 tons
* Total cash cost* - US$390 per equivalent ounce
* Capital expenditure - US$20 million
* Notional cash expenditure* - US$670 per equivalent ounce
* Equivalent ounces are based on a gold price of US$900 per ounce and copper
price of US$4,350 per ton.
Australia
St Ives
March December
2009 2008
Gold produced - 000`ozs 109.5 108.7
Yield - heap leach - g/t 0.5 0.5
- milling - g/t 2.7 2.5
- combined - g/t 1.9 1.8
Total cash cost - A$/oz 811 807
- US$/oz 538 551
Notional cash expenditure - A$/oz 978 996
- US$/oz 649 679
Gold production increased by 1 per cent from 108,700 ounces in the December
quarter to 109,500 ounces in the March quarter.
Gold produced from the Lefroy mill increased from 99,700 ounces to 100,100
ounces. Tons milled decreased by 2 per cent to 1.20 million tons offset by the
head grade which increased by 10 per cent from 2.7 grams per ton to 3.0 grams
per ton.
Gold produced from heap leach increased by 400 ounces over the previous quarter,
to stand at 9,400 ounces for the March quarter. Tons treated from the heap leach
increased from 610,000 tons to 625,000 tons and head grade increased from 0.8
grams per ton to 0.9 grams per ton. This was partially offset by slightly lower
recoveries.
At the open pit operations 1.4 million tons of ore were mined for the quarter,
up on the 1.3 million tons of ore mined in the December quarter. Grade increased
from 1.2 grams per ton to 1.7 grams per ton. The increase in grade was due to
higher grade ore mined from the Agamemnon pit and the Leviathan pit cutback
reaching higher grade regions. The average strip ratio including capital waste
was 4.0 in the March quarter, compared with 5.8 in the December quarter.
At the underground operations 322,000 tons of ore was mined at 5.2 grams per ton
compared with 324,000 tons of ore mined at 5.4 grams per ton in the December
quarter. The lower grade quarter on quarter was mainly due to lower grade stopes
being mined at Cave Rocks, which achieved full production in the month of
December. Underground recoveries were also lower due mainly to the increase in
the lower grade ore from Cave Rocks.
Operating costs, including gold-in-process movements, decreased from A$90
million (R601 million) in the December quarter to A$84 million (R556 million) in
the March quarter. The decrease was due primarily to the lower stripping ratios
and a credit to GIP of A$5 million (R35 million) due to a build-up of gold
inventory compared with a charge of A$6 million (R38 million) in the previous
quarter. These gains were partially offset by an additional A$3 million (R18
million) of third party royalties paid due to the higher Australian dollar gold
price. Total cash cost of US$538 per ounce (AS$811 per ounce) was 2 per cent
lower than the US$551 per ounce (AS$807 per ounce) achieved in the December
quarter.
Operating profit increased from A$40 million (R268 million) to A$66 million
(R442 million) due to the increased ounces produced, the stronger Australian
dollar gold price and lower strip ratios at the open pit operations.
Capital expenditure decreased from A$24 million (R162 million) in the December
quarter to A$18 million (R115 million) in the March quarter. The reduction in
capital was due to the completion of the project phase of the Cave Rocks
underground mine which reached full production in the month of December and the
completion of the pre-stripping of the Grinder open pit during the December
quarter.
Notional cash expenditure decreased from A$996 (US$679) per ounce to A$978
(US$649) per ounce due to the increase in ounces produced and reduction in
capital expenditure.
The estimate for the June quarter is as follows:
* Gold produced - 110,000 ounces
* Total cash cost* - A$780 (US$560) per ounce
* Capital expenditure* - A$20 million (US$14 million)
* Notional cash expenditure* - A$1,015 (US$730) per ounce
* Based on A$1=US$0.72.
Agnew
March December
2009 2008
Gold produced - 000`ozs 49.5 45.0
Yield - g/t 5.6 5.5
Total cash cost - A$/oz 535 543
- US$/oz 355 371
Notional cash expenditure - A$/oz 725 809
- US$/oz 481 552
Gold production increased 10 per cent from 45,000 ounces in the December quarter
to 49,500 ounces in the March quarter.
Ore mined from underground increased by 14 per cent from 169,000 tons in the
December quarter at a head grade of 8.3 grams per ton to 193,000 tons in the
March quarter at a head grade of 7.7 grams per ton. The increase was due to
improved equipment availability and increased production from Main Lode. Decline
and capital development increased from 471 metres in the December quarter to 673
metres in the March quarter. A decline was commenced to link Main Lode to Kim
Lode at a depth of 600 metres below surface to improve haulage, logistics and
ventilation.
The combined grade mined was lower quarter on quarter due to a reduction in Kim
Lode production from 127,000 tons at 9.5 grams per ton to 98,000 tons at 9.3
grams per ton. The decrease in Kim Lode tons was due to back filling old stopes
to safeguard infrastructure.
Operating costs, including gold-in-process movements, increased 4 per cent from
A$25 million (R167 million) in the December quarter to A$26 million (R171
million) in the March quarter. The increase in net operating cost was the result
of higher underground volumes and a drawdown of gold-in-process Total cash costs
per ounce decreased 2 per cent from A$543 per ounce (US$371 per ounce) in the
December quarter to A$535 per ounce (US$355 per ounce) in the March quarter due
to the increased production.
Operating profit increased 37 per cent from A$30 million (R199 million) in the
December quarter to A$42 million (R276 million) in the March quarter. This was
due primarily to the increased revenue from a higher Australian dollar gold
price and increased production.
Capital expenditure was consistent with the prior quarter at A$12 million (R77
million). Expenditure was split A$5 million to capital works, A$3 million to
underground capital development and A$4 million to exploration. These splits
were very similar to the December quarter.
Notional cash expenditure decreased from A$809 per ounce (US$552) in the
December quarter to A$725 per ounce (US$481) in the March quarter.
The estimate for the June quarter is as follows:
* Gold produced - 40,000 ounces
* Total cash costs* - A$600 per ounce (US$430)
* Capital expenditure* - A$12 million (US$9 million)
* Notional cash expenditure* - A$91 per ounce (US$655)
* Based on A$1=US$0.72
Gold production for the June quarter will be impacted by a planned mill shut
down for two weeks. Capital expenditure is expected to remain steady at A$12
million (US$9 million). Notional cash expenditure per ounce is expected to
increase from A$725 (US$481) in the March quarter to A$910 (US$655) in the June
quarter due to lower gold production with similar levels of capital and
operating expenditure quarter-on-quarter.
Capital and development projects
South Deep project
March December
2009 2008
Gold produced - kg 1,500 1,471
- 000`ozs 48.2 47.3
Yield - underground - g/t 5.7 6.8
- combined - g/t 4.4 5.2
Total cash cost - R/kg 186,667 179,130
- US$/oz 585 567
Notional cash expenditure - R/kg 373,733 362,135
- US$/oz 1,171 1,147
Gold production at South Deep increased by 2 per cent from 1,471 kilograms
(47,300 ounces) in the December quarter to 1,500 kilograms (48,200 ounces) in
the March quarter. Underground tonnage excluding waste increased by 25 per cent
from 205,000 tons in the December quarter to 257,000 tons in the March quarter.
The underground yield reduced from 6.8 grams per ton in the December quarter to
5.7 grams per ton in the March quarter. This was mainly due to an increase in
lower grade de-stress mining as well as lower tonnage from the higher grade 95 3
West project. Surface ore processed decreased from 36,000 tons to 25,000 tons
for the quarter.
Development decreased by 27 per cent for the March quarter from 2,180 metres to
1,596 metres. The new mine capital development in Phase 1, sub 95 level,
increased for the quarter from 582 metres to 646 metres. Development in the
current mine areas above 95 level decreased from 1,598 metres to 947 metres as a
result of the implementation of the one pass secondary support system.
Operating costs increased by 7 per cent from R277 million (US$27 million) in the
December quarter to R296 million (US$30 million) in the March quarter. This was
mainly due to the increase in tonnage mined, increased maintenance over the
Christmas break, production incentives and additional support. The total cash
cost increased by 4 per cent from R179,130 per kilogram (US$567 per ounce) in
the December quarter to R186,667 per kilogram (US$585 per ounce) in the March
quarter.
An operating profit of R139 million (US$15 million) was realised in the March
quarter compared with the December quarter`s operating profit of R98 million
(US$13 million).
Capital expenditure increased marginally from R256 million (US$26 million) to
R265 million (US$27 million) in the March quarter in line with the planned
project build-up. The increased expenditure was mainly on low profile mechanised
equipment.
Notional cash expenditure increased by 4 per cent from R362,135 per kilogram
(US$1,147 per ounce) to R373,733 per kilogram (US$1,171 per ounce).
The estimate for the June quarter is as follows:
* Gold produced - 1,600 kilograms (51,000 ounces)
* Total cash costs* - R180,000 per kilogram (US$625 per ounce)
* Capital expenditure* - R360 million (US$40 million)
* Notional cash expenditure* - R415,000 per kilogram (US$1,435 per ounce)
* Based on an exchange rate of US$1 = R9.00
The total cash cost is forecast to decrease as a result of the higher gold
production. Notional cash expenditure is forecast to increase in line with the
planned increase in capital expenditure. This is mainly due to increased
development, mechanised equipment and property purchased for the new slimes dam.
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 mechanised mining method for the de-stress cut in the massives mining
projects and delivery of increased production.
The recommissioning of South shaft for hoisting will be completed during the
June quarter and single shift hoisting is being planned in F2010 for the reef
and waste tonnage build-up that will be in excess of the existing Twin shaft
rock winder capacity. Shaft refurbishment and the installation of pump and
backfill columns are required to continue during the remaining shifts at South
shaft. The second rock winder for the ventilation shaft at South Deep has been
ordered and should be commissioned by December 2011, ahead of the base plan
schedule.
Current new mine development rates should deliver the infrastructure necessary
to build to full production of around 800,000 ounces per annum by December 2014.
Total project expenditure is estimated at R8 billion in today`s money.
Significant projects being actioned are the new tailings dam and the rock winder
for the ventilation shaft at the Twin shaft complex. This project is on track
for first tailings deposition by December 2010 as planned.
Quarter ended 31 March 2009 compared with quarter ended 31 March 2008
Group attributable gold production increased by 5 per cent from 827,000 ounces
for the quarter ended March 2008 to 871,400 ounces produced in the March 2009
quarter.
At the South African operations gold production decreased from 519,800 ounces to
517,200 ounces. Driefontein`s gold production increased from 209,900 ounces to
215,200 ounces due to an increase in volumes. At Kloof gold production decreased
from 175,500 ounces to 173,800 ounces due to reduced pillar mining for safety
reasons. Beatrix`s gold production decreased from 81,700 ounces to 80,000 ounces
due to reduced mining volumes at lower values. South Deep`s gold production
decreased from 52,600 ounces to 48,200 ounces due to the termination of
conventional VCR mining.
At the international operations total managed gold production increased from
370,500 ounces in March 2008 to 425,200 ounces in March 2009. This included
61,400 equivalent ounces from Cerro Corona not included in the previous year. In
Ghana, Damang`s gold production was similar at 52,500 ounces. Tarkwa was 8 per
cent down at 152,200 ounces mainly due to lower volumes. In Australia, St Ives
increased marginally from 103,900 ounces to 109,500 ounces. The increase at St
Ives was due to an increase in underground production and an increase in grade.
Production at Agnew increased by 1 per cent.
Revenue increased by 39 per cent in rand terms from R6,109 million (US$820
million) to R8,510 million (US$869 million). The 31 per cent higher average gold
price of R289,095 per kilogram (US$906 per ounce) compares with R220,612 per
kilogram (US$921 per ounce) achieved in the March 2008 quarter. The rand
weakened from US$1 = R7.45 to US$1 = R9.93, or 33 per cent, while the
rand/Australian dollar weakened from A$1 = R6.73 to R6.59, or 2 per cent.
Operating costs, including gold-in-process movements, increased from R3,543
million to R4,524 million, or 33 per cent in rand terms due to the weaker rand.
In dollar terms operating costs decreased from US$474 million to US$453 million.
The increase in costs in rand terms was mainly due to the increases in cost at
the South African operations, exchange rate movements of R475 million mainly due
to the weaker rand and the inclusion of Cerro Corona (R289 million) not included
in the previous year. 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 R122,920 per kilogram (US$513 per ounce) to R150,301 per kilogram
(US$471 per ounce) due to the above factors.
At the South African operations operating costs increased by 15 per cent from
R2,126 million (US$285 million) in the March 2008 quarter to R2,434 million
(US$239 million) in the March 2009 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
during the year. The power rationing at the South African operations contributed
to lower costs in the March 2008 quarter. Unit cash costs at the South African
operations increased from R125,181 per kilogram to R143,340 per kilogram as a
result of the above.
At the international operations, operating costs increased from R1,417 million
(US$190 million) in the March 2008 quarter to R2,090 million (US$210 million) in
the March 2009 quarter. R289 million (US$31 million) was as a result of the
inclusion of Cerro Corona (not included in the previous year), while R474
million was as a result of exchange rate movements. This was partly offset by
cost saving initiatives at all the international operations.
Operating profit increased from R2,566 million (US$347 million) to R3,986
million (US$416 million). After accounting for taxation, sundry costs and
exceptional items, net earnings amounted to R1,307 million (US$140 million),
compared with R1,248 million (US$167 million) in the March 2008 quarter.
Earnings excluding exceptional items, gains and losses on foreign exchange,
financial instruments, losses of associates after taxation and discontinued
operations amounted to R1,369 million (US$146 million) this quarter compared
with R1,001 million (US$137 million) in the March 2008 quarter.
Exploration and corporate development
Gold Fields is increasing activity across its international exploration
projects, with drill rigs operating in eleven countries (Australia, Ghana, Peru,
Mali, Chile, DRC, Dominican Republic, China, USA, Indonesia and Kyrgyzstan). A
total of 96,700 metres of drilling was completed with encouraging results
returned from a number of projects.
The Group continues to devote considerable effort to the evaluation of business
development opportunities which have become available due to the economic
crisis.
Notable milestones on three projects this quarter include the assumption of
operatorship at the Talas joint venture with Orsu Metals in Kyrgyzstan, the
conclusion of a Letter of Intent with Glencar Mining to joint venture its Komana
project in Mali and the exercise of a back-in right to earn 51 per cent of the
Chucapaca joint venture with partner Buenaventura in Southern Peru.
Advanced exploration
At the Talas project, where Gold Fields can earn up to a 70 per cent interest in
a joint venture with Orsu Metals Corporation (TSX: "OSU" and AIM: "OSU"), an
aggressive drilling programme has continued through the winter months. Results
are encouraging with high grade sections.
Understanding of the geological controls continues to improve with the
recognition of at least three phases of mineralisation: 1.) Mo-Cu associated
with a coarse-grained porphyritic monzonitic intrusive and quartz carbonate
veins, 2.) Cu-Au-Mo associated with a medium grained monzodiorite and quartz
vein stockworks and 3.) Cu-Au-Mo associated with a diorite intrusive and
disseminated bornite and chalcopyrite.
In addition to the existing Sankarani joint venture in Mali, Gold Fields and
Glencar Mining plc (AIM: "GEX") signed a Letter of Intent in late March 2009
where Gold Fields can earn up to 65 per cent in Glencar`s Komana project which
has a published resource of 1.25Moz. Gold Fields will also make an equity
investment in Glencar and will hold about 15 per cent of the company`s equity.
Drilling will commence as soon as possible.
At the Chucapaca project in southern Peru, Gold Fields and Compania de Minas
Buenaventura (NYSE "BVN") are preparing to resume an aggressive resource
delineation drilling programme on the Canahuire discovery where recent drilling
by Buenaventura has intersected significant gold with locally important copper
grades associated with the margins of a breccia-hosted deposit. Gold Fields will
fund about US$6 million as part of its back-in right to earn 51 per cent in the
project.
Greenfields exploration
At the 51 per cent owned Sankarani joint venture in Mali with Glencar Mining plc
(AIM: "GEX"), Gold Fields continues to define and drill high priority targets at
the Finguana, Sanioumale, Bada and Fie River tenement blocks. At Bada, bed rock
sampling delineated a three kilometre long gold in soil anomaly that is ready
for initial drilling. The anomaly coincides with NE-SW shear zone mapped out
from the magnetic image. At Bokoro, soil sampling has outlined three gold in
soil anomalies coinciding with the NE continuation of the mineralised shear zone
intersected at Bokoro Main.
At the Clancy joint venture in New South Wales, Australia Gold Fields is earning
into an 80 per cent interest in four project areas from Clancy Exploration
Limited (ASX: "CLY"), Clancy was formally notified that Gold Fields will assume
management and operatorship of the four joint venture projects as of 1 April
2009. Aircore drilling, detailed gravity and ground magnetics surveys were
completed this quarter. Assay and visual results from the first eight aircore
holes at the Myall project area are encouraging and delineate a significant zone
of >1,000ppm Cu in basement.
At the Jinshu project, part of the Sino Gold Alliance with Sino Gold Mining
Limited (ASX: "SGX" and HKSE: "1862"), in southwestern China, the alliance has
elected to increase its equity from 42 per cent to a maximum of 98 per cent by
funding further exploration and making cash payments following encouraging
results reported from the drilling programme last quarter.
At the Batangas joint venture in the Philippines, Gold Fields and Mindoro
Resources Limited (TSX.V: "MIO") are finalising an agreement which will allow
Gold Fields to earn up to a 75 per cent interest in a large Cu-Au project on
southern Luzon. Community relations work is underway and field programmes will
commence early in Q4 F2009.
At the SBX joint venture in Chile, Gold Fields can earn up to 90 per cent in a
joint venture with SBX Asesorias e Inversiones and 100 per cent under an option
agreement with Aguas Heladas, both private companies. During this quarter, Gold
Fields completed geophysical surveys, bull-dozer trenching and commenced an RC
drilling programme on the Pircas and Piedra Parada targets.
At the Toodoggone joint venture in British Columbia, Canada, Gold Fields and
Cascadero Copper Corp. (TSX.V: "CCD") signed an agreement in March which allows
Gold Fields to earn up to a 75 per cent interest in Cascadero`s Toodoggone Cu-Au
project. An airborne survey commenced in April 2009 with ground follow-up
geophysics and drilling scheduled to start in May-June depending on snow cover.
Near Mine exploration
At St Ives in Western Australia, drilling in the Athena area continues to
deliver exceptional gold grades, including 3.5 metres at 60.9 grams per ton and
3.1 metres at 33.4 grams per ton. At the Hamlet target, RC drilling has returned
an intercept of 8 metres at 7.5 grams per ton from 103 metres. Initial resources
for both of these projects will be included in the next resource statement.
At Agnew in Western Australia, surface drilling in the Redeemer - Waroonga gap
has intersected the favourable MCC stratigraphic package including narrow zones
of mineralisation. One drill hole intersected six metres (true thickness) of
arsenopyrite - chalcopyrite and pyrrhotite alteration and associated veining at
a depth of 230 metres. Infill underground drilling continued at Waroonga and Kim
South with positive results.
At Damang in Ghana, extensional drilling below the Juno pit and southwards for
700 metres on the Tamang prospect intersected hydrothermal style veining in
dolerite intrusives and Tarkwaian rocks. These intersections were all within 150
metres of surface and outside any resource shells. Similarly, favourable
indications continue to come out of the Amoanda - Tomento East gap and veining
has been located within 30 metres of surface 200 metres south of Tomento East.
At Cerro Corona in Peru, the Consolidada de Hualgayoc 50:50 joint venture with
Buenaventura (NYSE: "BVN") is in the final stage of the approval process with
the communities for drilling access to the Titan-Arabe Copper-gold target.
Drilling is planned to commence in the June quarter subject to final approval
being obtained.
Development projects
At the Arctic Platinum project in Finland, positive results from preliminary
metallurgical tests, using the Platsol (TM) process, has justified additional
engineering work to fine-tune the cost estimates for using this process on a
commercial scale. Platsol (TM) is a hydrometallurgical process which uses
pressure oxidation to take the base metals and precious metals in Arctic
Platinum concentrate into solution. The metals are then recovered from the
solution.
Corporate
Appointments to the Gold Fields Board of Directors
On 11 March 2009 Gold Fields announced the appointment of Ms Cheryl Carolus and
Mr Roberto Danino to the Board of Directors effective from 10 March 2009.
Ms Carolus, a South African, was born in Silvertown in Cape Town. After a career
in politics she became South Africa`s High Commissioner to the United Kingdom in
London in 1998. Between 2001 and 2004, she was the Chief Executive Officer of
South African Tourism. She served as chairperson of the South African National
Parks Board for six years. She is also executive chairperson of Peotona
Holdings, an investment company that deals with business development.
Mr Roberto Danino is a Peruvian lawyer who has practised for over 30 years as a
Partner of leading law firms in Lima and Washington DC. He has extensive
experience throughout Latin America, as well as in the USA and the UK. He is a
graduate of Harvard Law School and the Pontificia Universidad Catolica del Peru.
Mr Danino sits on various corporate and non-profit boards, both in Peru and the
USA, including Gold Fields La Cima in Peru. Mr Danino has also served as Prime
Minister of Peru and Ambassador to the United States. He has been Senior Vice
President and General Counsel of the World Bank, as well as Secretary General of
the International Center for Settlement of Investment Disputes (ICSID). He was
also the founding General Counsel of the Inter-American Investment Corporation
(IIC) in Washington, D.C., the private sector affiliate of the Inter-American
Development Bank.
Black Economic Empowerment transaction
Gold Fields announced on 17 March 2009 that, in terms of the R4.1 billion Black
Economic Empowerment transaction approved by shareholders of Gold Fields on 8
March 2004, Mvelaphanda Resources ("Mvela Resources") took receipt, through its
wholly owned subsidiary Mvelaphanda Gold (Proprietary) Limited ("Mvela Gold"),
of its 15 per cent shareholding in GFI Mining South Africa (Proprietary) Limited
("GFIMSA"), a subsidiary of Gold Fields which owns and operates the South
African gold mining assets of Gold Fields ("the GFIMSA shares").
Immediately upon receipt of the GFIMSA shares, Mvela Gold exercised its right to
use the GFIMSA shares to subscribe for 50 million new ordinary shares in Gold
Fields. Gold Fields issued 50 million new ordinary Gold Fields shares, to Mvela
Gold for the GFIMSA shares. This brought the total number of Gold Fields shares
to 703,839,976. Pursuant to the above transactions, Mvela Gold owned
approximately 7 per cent of the listed shares of Gold Fields, and Gold Fields
again owns 100 per cent of GFIMSA.
Standard and Poor`s investment grade credit rating
On 19 March 2009 Standard and Poor`s Ratings Services ("S&P") assigned Gold
Fields with a `BBB-/A-3` long-term and short-term global corporate credit rating
and `zaA/zaA-1` long-term and short-term South Africa national scale corporate
credit rating. The long-term ratings reflect Gold Fields` satisfactory business
risk and intermediate financial risk profiles while the short-term ratings
reflect Gold Fields` adequate liquidity.
The satisfactory business risk profile reflects Gold Fields` market position as
the world`s fourth largest gold producer, an industry-leading long reserve life
of over 20 years, healthy profitability underpinned by persistently strong gold
prices. The company`s leverage and financial policy is considered to be
moderate. The stable outlook reflects the expectation that Gold Fields will
continue to report healthy cash flow generation, supported by ongoing strong
gold prices and a weak exchange rate.
Executive team
Gold Fields announced on 24 March 2009 that it intended to reorganise and
further strengthen its executive team. Nick Holland, Chief Executive Officer,
said: "Given Gold Fields` international growth and regionalisation strategy, our
expanding footprint around the globe has required a strengthening and
reorganisation of the Group`s executive team". The international portfolio,
which is currently headed up by Glenn Baldwin, will be split into three separate
portfolios, each headed up by an executive who will be a member of the Group
Executive Committee and report to the Chief Executive Officer.
* The Australasia Region will be headed up by Glenn Baldwin as Executive Vice
President and Head of the Australasia Region. Located in Perth, Glenn will take
responsibility for the two existing mines in Australia, St Ives and Agnew, and
will work with the business development and exploration executives to try and
grow production in Australasia to one million ounces per annum over the next
three to five years.
* A new position will be created for an Executive Vice President and Head of the
West Africa and South America Regions. The incumbent will take responsibility
for the Tarkwa and Damang mines in Ghana, West Africa, as well as the Cerro
Corona mine in Peru, South America, and will work with the business development
and exploration executives to try and grow production in these two regions to a
million ounces per annum each.
* A new position will be created for an Executive Vice President and Head of
International Projects. The incumbent will be responsible for the overall
coordination and control of all international capital projects as well as the
international technical Group.
In the South Africa Region the South Deep project is gaining momentum while the
evaluation of the Uranium project, or the "5th mine" in the South African
portfolio, is progressing rapidly, with an investment decision expected early in
2010. In order to strengthen the South African regional team, a new position
will be created for a Vice President - Capital Projects (South Africa), who will
take responsibility for capital projects in South Africa including South Deep,
as well as the technology drive in the South Africa Region. The incumbent will
report to Vishnu Pillay, Executive Vice President and Head of South Africa
Region.
Outlook
In the June quarter attributable gold production is forecast to increase by 3
per cent from 871,000 ounces to 900,000 ounces, subject to the forward looking
statement. Total cash costs are forecast to increase from US$471 per ounce to
US$510 per ounce mainly due to the 8 per cent stronger rand. The June quarter
forecast is based on an exchange rate of R/US$ 9.00 and US$/A$ 0.72 compared
with R/US$ 9.83 and US$/A$ 0.66 achieved in the March quarter. NCE is forecast
at US$730 per ounce compared with US$668 per ounce in the March quarter, also
significantly impacted by the movement in the exchange rate.
Basis of accounting
The unaudited results for the quarter have been prepared on the International
Financial Reporting Standards (IFRS) basis. The detailed financial, operational
and development results for the March 2009 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.
NJ Holland
Chief Executive Officer
7 May 2009
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND Quarter
March December March
2009 2008 2008
Revenue 8,509.5 7,074.4 6,109.2
Operating costs, net 4,523.7 4,508.5 3,543.3
- Operating costs 4,566.5 4,542.3 3,502.6
- Gold inventory change (42.8) (33.8) 40.7
Operating profit 3,985.8 2,565.9 2,565.9
Amortisation and depreciation 1,140.9 1,032.8 713.9
Net operating profit 2,844.9 1,533.1 1,852.0
Net interest paid (163.5) (164.2) (96.2)
Share of profit/(loss) of associates after
taxation 21.1 (46.6) 7.8
Gain on foreign exchange 128.7 45.5 38.4
(Loss)/gain on financial instruments (5.1) (65.9) 262.3
Share-based payments (95.2) (94.3) (24.6)
Other (41.4) (51.5) (7.7)
Exploration (133.8) (136.1) (57.5)
Profit before tax and exceptional items 2,555.7 1,020.0 1,974.5
Exceptional (loss)/gain (203.1) (5.0) (41.6)
Profit before taxation 2,352.6 1,015.0 1,932.9
Mining and income taxation 943.3 496.1 566.5
- Normal taxation 536.4 119.5 278.8
- Royalties 97.6 79.0 70.6
- Deferred taxation 309.3 297.6 217.1
Net profit from continued operations 1,409.3 518.9 1,366.4
Profit from discontinued operations - - -
Profit adjustment on sale of Venezuelan
assets - - -
Net profit 1,409.3 518.9 1,366.4
Attributable to:
- Ordinary shareholders 1,306.6 483.1 1,248.0
- Minority shareholders 102.7 35.8 118.4
Exceptional items:
(Loss)/profit on sale of investments (213.6) 1.6 -
Profit/(loss) on sale of assets 11.0 (2.9) 3.2
South Deep restructuring costs (0.5) (2.9) -
Driefontein 9 shaft closure costs - - (44.8)
Insurance claim - South Deep - (0.8) -
Total exceptional items (203.1) (5.0) (41.6)
Taxation (2.1) 0.8 18.7
Net exceptional items after tax and
minorities (205.2) (4.2) (22.9)
Net earnings 1,306.6 483.1 1,248.0
Net earnings per share (cents) 195 74 191
Diluted earnings per share (cents) 193 69 178
Headline earnings 1,511.6 484.1 1,245.7
Headline earnings per share (cents) 225 74 191
Net earnings excluding gains and losses on
foreign exchange,
financial instruments, exceptional items,
share of profit/(loss) of 1,368.9 542.3 1,000.8
associates after taxation and discontinued
operations
Net earnings per share excluding gains and
losses on foreign exchange, financial
instruments, exceptional items, share of
profit/(loss) of associates after taxation
and discontinued operations (cents) 204 83 153
Gold sold - managed kg 29,435 28,291 27,692
Gold price received R/kg 289,095 250,058 220,612
Total cash cost R/kg 150,301 153,893 122,920
Nine months to
March March
2009 2008
Revenue 21,307.5 16,557.1
Operating costs, net 13,181.9 10,237.6
- Operating costs 13,342.0 10,135.7
- Gold inventory change (160.1) 101.9
Operating profit 8,125.6 6,319.5
Amortisation and depreciation 3,075.2 2,247.7
Net operating profit 5,050.4 4,071.8
Net interest paid (439.2) (298.6)
Share of profit/(loss) of associates after taxation (129.7) 22.9
Gain on foreign exchange 168.1 21.0
(Loss)/gain on financial instruments (126.8) 83.6
Share-based payments (283.4) (77.9)
Other (113.9) 24.1
Exploration (337.6) (220.8)
Profit before tax and exceptional items 3,787.9 3,626.1
Exceptional (loss)/gain (93.7) 1,404.3
Profit before taxation 3,694.2 5,030.4
Mining and income taxation 1,696.3 1,274.0
- Normal taxation 792.8 685.7
- Royalties 243.2 172.0
- Deferred taxation 660.3 416.3
Net profit from continued operations 1,997.9 3,756.4
Profit from discontinued operations - 37.0
Profit adjustment on sale of Venezuelan assets - 74.2
Net profit 1,997.9 3,867.6
Attributable to:
- Ordinary shareholders 1,828.9 3,614.6
- Minority shareholders 169.0 253.0
Exceptional items:
(Loss)/profit on sale of investments (212.9) 1,414.7
Profit/(loss) on sale of assets 10.0 34.4
South Deep restructuring costs (22.2) -
Driefontein 9 shaft closure costs - (44.8)
Insurance claim - South Deep 131.4 -
Total exceptional items (93.7) 1,404.3
Taxation (47.4) (0.8)
Net exceptional items after tax and minorities (141.1) 1,403.5
Net earnings 1,828.9 3,614.6
Net earnings per share (cents) 275 554
Diluted earnings per share (cents) 268 517
Headline earnings 2,034.6 2,111.7
Headline earnings per share (cents) 305 324
Net earnings excluding gains and losses on foreign
exchange, financial instruments,
exceptional items, share of profit/(loss) of 2,031.5 1,996.3
associates after taxation and discontinued operations
Net earnings per share excluding gains and losses on
foreign exchange, financial instruments,
exceptional items, share of profit/(loss) of
associates after taxation and discontinued
operations (cents) 305 306
Gold sold - managed kg 84,031 91,846
Gold price received R/kg 253,567 180,270
Total cash cost R/kg 152,500 106,902
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
UNITED STATES DOLLARS Quarter
March December March
2009 2008 2008
Revenue 868.5 718.1 821.1
Operating costs, net 453.0 450.0 473.9
- Operating costs 457.1 452.6 468.4
- Gold inventory change (4.1) (2.6) 5.5
Operating profit 415.5 268.1 347.2
Amortisation and depreciation 115.4 103.8 94.8
Net operating profit 300.1 164.3 252.4
Net interest paid (16.5) (17.0) (12.8)
Share of profit/(loss) of associates after
taxation 3.0 (3.7) 1.0
Gain on foreign exchange 13.9 5 .3 5.5
Gain/(loss) on financial instruments 0.1 (6.7) 37.6
Share-based payments (9.5) (9.3) (3.3)
Other (4.1) (5.6) (1.2)
Exploration (13.7) (14.5) (7.5)
Profit before tax and exceptional items 273.3 112.8 271.7
Exceptional (loss)/gain (22.7) (2.3) (11.1)
Profit before taxation 250.6 110.5 260.6
Mining and income taxation 99.4 52.6 77.2
- Normal taxation 57.4 11.5 37.8
- Royalties 9.9 8.0 9.5
- Deferred taxation 32.1 33.1 29.9
Net profit from continued operations 151.2 57.9 183.4
Profit from discontinued operations - - (0.1)
Profit adjustment on sale of Venezuelan
assets - - (0.3)
Net profit 151.2 57.9 183.0
Attributable to:
- Ordinary shareholders 140.4 54.2 166.8
- Minority shareholders 10.8 3.7 16.2
Exceptional items:
(Loss)/profit on sale of investments (23.3) 0.2 (5.1)
Profit/(loss) on sale of assets 1.2 (0.3) 0.3
South Deep restructuring costs 0.1 (0.1) -
Driefontein 9 shaft closure costs - - (6.3)
Insurance claim - South Deep (0.7) (2.1) -
Total exceptional items (22.7) (2.3) (11.1)
Taxation - 0 .8 2.7
Net exceptional items after tax and
minorities (22.7) (1.5) (8.4)
Net earnings 140.4 54.2 166.8
Net earnings per share (cents) 21 8 26
Diluted earnings per share (cents) 21 7 24
Headline earnings 162.5 54.6 175.5
Headline earnings per share (cents) 24 8 27
Net earnings excluding gains and losses on
foreign exchange,
financial instruments, exceptional items,
share of profit/(loss) of 146.3 59.9 137.2
associates after taxation and discontinued
operations
Net earnings per share excluding gains and
losses on foreign
exchange, financial instruments, exceptional
items, share of
profit/(loss) of associates after taxation
and
discontinued operations (cents) 21 10 21
South African rand/United States dollar
conversion rate 9.93 9.82 7.45
South African rand/Australian dollar
conversion rate 6.59 6.70 6.73
Gold sold - managed ozs (000) 946 910 890
Gold price received $/oz 906 792 921
Total cash cost $/oz 471 487 513
Nine months to
March March
2009 2008
Revenue 2,326.1 2,328.7
Operating costs, net 1,439.1 1,439.9
- Operating costs 1,456.6 1,425.6
- Gold inventory change (17.5) 14.3
Operating profit 887.0 888.8
Amortisation and depreciation 335.7 316.1
Net operating profit 551.3 572.7
Net interest paid (47.9) (42.0)
Share of profit/(loss) of associates after taxation (14.2) 3.2
Gain on foreign exchange 18.4 3 .0
Gain/(loss) on financial instruments (13.8) 11.8
Share-based payments (30.9) (11.0)
Other (12.4) 3.4
Exploration (36.9) (31.1)
Profit before tax and exceptional items 413.6 510.0
Exceptional (loss)/gain (10.2) 197.5
Profit before taxation 403.4 707.5
Mining and income taxation 185.2 179.2
- Normal taxation 86.6 96.4
- Royalties 26.5 24.2
- Deferred taxation 72.1 58.6
Net profit from continued operations 218.2 528.3
Profit from discontinued operations - 5.2
Profit adjustment on sale of Venezuelan assets - 10.4
Net profit 218.2 543.9
Attributable to:
- Ordinary shareholders 199.8 508.3
- Minority shareholders 18.4 35.6
Exceptional items:
(Loss)/profit on sale of investments (23.2) 199.0
Profit/(loss) on sale of assets 1.1 4.8
South Deep restructuring costs (2.4) -
Driefontein 9 shaft closure costs - (6.3)
Insurance claim - South Deep 14.3 -
Total exceptional items (10.2) 197.5
Taxation (5.2) (0.1)
Net exceptional items after tax and minorities (15.4) 197.4
Net earnings 199.8 508.3
Net earnings per share (cents) 30 78
Diluted earnings per share (cents) 29 73
Headline earnings 222.1 300.5
Headline earnings per share (cents) 33 46
Net earnings excluding gains and losses on foreign
exchange, financial instruments, exceptional
items, share of profit/(loss) of 221.8 280.8
associates after taxation and discontinued operations
Net earnings per share excluding gains and losses on
foreign exchange, financial instruments,
exceptional items, share of profit/(loss) of
associates after taxation and
discontinued operations (cents) 33 43
South African rand/United States dollar conversion rate 9.16 7.11
South African rand/Australian dollar conversion rate 6.75 6.26
Gold sold - managed ozs (000) 2,702 2,953
Gold price received $/oz 861 789
Total cash cost $/oz 518 468
Balance sheet
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
March June
2009 2008
Property, plant and equipment 50,003.8 45,533.3
Goodwill 4,458.9 4,458.9
Non-current assets 806.5 746.7
Investments 5,107.2 5,704.2
Current assets 9,128.8 6,450.5
- Other current assets 6,591.9 4,443.2
- Cash and deposits 2,536.9 2,007.3
Total assets 69,505.2 62,893.6
Shareholders` equity 45,730.3 42,561.2
Deferred taxation 6,217.6 5,421.9
9,407.1 6,513.9
Long-term loans
Environmental rehabilitation provisions 2,149.7 2,015.5
Post-retirement health care provisions 20.7 21.0
Current liabilities 5,979.8 6,360.1
- Other current liabilities 5,102.2 5,875.9
- Current portion of long-term loans 877.6 484.2
Total equity and liabilities 69,505.2 62,893.6
South African rand/US dollar conversion rate
South African rand/Australian dollar conversion rate
UNITED STATES DOLLARS
March June
2009 2008
Property, plant and equipment 5,230.5 5,691.7
Goodwill 466.4 557.4
Non-current assets 84.4 93.3
Investments 534.2 713.0
Current assets 954.9 806.3
- Other current assets 689.5 555.4
- Cash and deposits 265.4 250.9
Total assets 7,270.4 7,861.7
Shareholders` equity 4,783.5 5,320.1
Deferred taxation 650.4 677.7
984.0 814.2
Long-term loans
Environmental rehabilitation provisions 224.9 251.9
Post-retirement health care provisions 2.2 2.6
Current liabilities 625.4 795.2
- Other current liabilities 533.6 734.7
- Current portion of long-term loans 91.8 60.5
Total equity and liabilities 7,270.4 7,861.7
South African rand/US dollar conversion rate 9.56 8.00
South African rand/Australian dollar conversion rate 6.67 7.66
Condensed changes in equity
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
March March
2009 2008
Balance at the beginning of the financial year 42,561.2 37,106.3
Issue of share capital 25.5 0.4
Increase in share premium 41.6 59.8
Marked to market valuation of listed investments (720.0) 729.3
Dividends paid (980.9) (619.9)
Increase in share-based payment reserve 283.4 77.9
Profit attributable to ordinary shareholders 1,828.9 3,614.6
Profit attributable to minority shareholders 169.0 253.0
Increase/(decrease) in minority interest 790.5 (441.2)
Loss on transacting with minorities - (74.7)
Currency translation adjustment and other 1,635.9 1,715.4
Reserves released on sale of Venezuelan assets - (454.1)
Share of equity investee`s other equity movements 95.2 -
Balance as at the end of March 45,730.3 41,966.8
UNITED STATES DOLLARS
March March
2009 2008
Balance at the beginning of the financial year 5,320.1 5,189.7
Issue of share capital 2.8 0.1
Increase in share premium 4.5 8.4
Marked to market valuation of listed investments (78.6) 102.6
Dividends paid (121.2) (87.2)
Increase in share-based payment reserve 30.9 11.0
Profit attributable to ordinary shareholders 199.8 508.3
Profit attributable to minority shareholders 18.4 35.6
Increase/(decrease) in minority interest 101.3 (62.1)
Loss on transacting with minorities - (10.5)
Currency translation adjustment and other (704.8) (392.7)
Reserves released on sale of Venezuelan assets - (63.9)
Share of equity investee`s other equity movements 10.3 -
Balance as at the end of March 4,783.5 5,239.3
Reconciliation of headline earnings with net earnings
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
March December March
2009 2008 2008
Net earnings 1,306.6 483.1 1,248.0
(Profit)/loss on sale of investments 213.6 (1.6) -
Loss/(profit) on sale of assets (11.0) 2.9 (3.2)
Taxation effect on sale of assets 2.4 (0.3) 0.9
Impairment of assets/other - - -
Other exceptional items - - -
Headline earnings 1,511.6 484.1 1,245.7
Headline earnings per share - cents 225 74 191
Based on headline earnings as given above
divided by 669,602,482 for March 2009
(December 2008 - 653,341,082 and March
2008 - 652,691,549) being the weighted
average number of ordinary shares in issue.
UNITED STATES DOLLARS
March December March
2009 2008 2008
Net earnings 140.4 54.2 166.8
(Profit)/loss on sale of investments 23.3 (0.2) -
Loss/(profit) on sale of assets (1.2) 0.3 (0.3)
Taxation effect on sale of assets 0.3 - 0.1
Impairment of assets/other - 0.3 -
Other exceptional items (0.3) - 8.9
Headline earnings 162.5 54.6 175.5
Headline earnings per share - cents 24 8 27
Based on headline earnings as given above
divided by 669,602,482 for March 2009
(December 2008 - 653,341,082 and March
2008 - 652,691,549) being the weighted
average number of ordinary shares in issue.
Cash flow statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND Quarter
March December March
2009 2008 2008
Cash flows from operating activities 2,947.2 1,787.1 3,038.5
Profit before tax and exceptional
items 2,555.7 1,020.0 1,974.5
Exceptional items (203.1) (5.0) (41.6)
Amortisation and depreciation 1,140.9 1,032.8 713.9
Change in working capital (211.8) (269.2) 794.2
Taxation paid (445.2) (132.5) (238.0)
Other non-cash items 110.7 141.0 (164.5)
Discontinued operations - - -
Dividends paid (196.1) (0.3) -
Ordinary shareholders (196.1) (0.3) -
Cash flows from investing activities (1,449.8) (2,350.2) (2,355.3)
Capital expenditure - additions (1,700.7) (2,345.2) (2,085.7)
Capital expenditure - proceeds on
disposal 10.2 0.2 3.1
Sale of subsidiaries 45.0 - -
Purchase of investments 1.9 3.5 (258.1)
Proceeds on the disposal of
investments 200.0 - 1.9
Environmental and post-retirement
health care payments (6.2) (8.7) (16.5)
Discontinued operations - - -
Cash flows from financing activities 94.4 (331.4) (213.7)
Loans received 4,947.4 832.5 1,535.3
Loans repaid (4,972.8) (1,173.1) (1,788.3)
Minority shareholders loans received 64.6 - -
Shares issued 55.2 9.2 39.3
Net cash inflow/(outflow) 1,395.7 (894.8) 469.5
Translation adjustment 87.6 130.3 154.0
Cash at beginning of period 1,053.6 1,818.1 1,320.6
Cash at end of period 2,536.9 1,053.6 1,944.1
Nine months to
March March
2009 2008
Cash flows from operating activities 4,702.6 5,171.6
Profit before tax and exceptional items 3,787.9 3,626.1
Exceptional items (93.7) 1,404.3
Amortisation and depreciation 3,075.2 2,247.7
Change in working capital (1,058.0) (0.2)
Taxation paid (1,490.3) (728.8)
Other non-cash items 481.5 (1,503.9)
Discontinued operations - 126.4
Dividends paid (980.9) (619.9)
Ordinary shareholders (980.9) (619.9)
Cash flows from investing activities (5,707.9) (4,510.3)
Capital expenditure - additions (5,858.7) (6,489.1)
Capital expenditure - proceeds on disposal 12.6 35.7
Sale of subsidiaries 45.0 1,042.1
Purchase of investments (81.4) (270.1)
Proceeds on the disposal of investments 200.0 34.4
Environmental and post-retirement health care
payments (25.4) (27.9)
Discontinued operations - 1,164.6
Cash flows from financing activities 2,360.7 (538.0)
Loans received 9,067.8 3,171.3
Loans repaid (6,838.8) (3,769.5)
Minority shareholders loans received 64.6 -
Shares issued 67.1 60.2
Net cash inflow/(outflow) 374.5 (496.6)
Translation adjustment 155.1 130.6
Cash at beginning of period 2,007.3 2,310.1
Cash at end of period 2,536.9 1,944.1
UNITED STATES DOLLARS Quarter
March December March
2009 2008 2008
Cash flows from operating activities 328.1 186.1 407.9
Profit before tax and exceptional items 273.3 112.8 271.7
Exceptional items (22.7) (2.3) (11.1)
Amortisation and depreciation 115.4 103.8 94.8
Change in working capital (19.1) (21.9) 114.6
Taxation paid (29.2) (18.8) (43.5)
Other non-cash items 10.4 12.5 (18.2)
Discontinued operations - - (0.4)
Dividends paid (19.3) - -
Ordinary shareholders (19.3) - -
Cash flows from investing activities (140.2) (238.5) (323.6)
Capital expenditure - additions (166.0) (239.4) (277.3)
Capital expenditure - proceeds on disposal 1.1 - 0.3
Sale of subsidiaries 4.9 - (3.8)
Purchase of investments (1.4) 1.7 (36.3)
Proceeds on the disposal of investments 21.8 - 0.1
Environmental and post-retirement health
care payments (0.6) (0.8) (2.3)
Discontinued operations - - (4.3)
Cash flows from financing activities 11.5 (39.2) (28.9)
Loans received 496.9 82.7 209.9
Loans repaid (498.0) (123.0) (244.3)
Minority shareholders loans received 6.7 - -
Shares issued 5.9 1.1 5.5
Net cash inflow/(outflow) 180.1 (91.6) 55.4
Translation adjustment (24.0) (28.4) (1.4)
Cash at beginning of period 109.3 229.3 188.7
Cash at end of period 265.4 109.3 242.7
Nine months to
March March
2009 2008
Cash flows from operating activities 513.5 714.1
Profit before tax and exceptional items 413.6 510.0
Exceptional items (10.2) 197.5
Amortisation and depreciation 335.7 316.1
Change in working capital (115.5) -
Taxation paid (162.7) (115.8)
Other non-cash items 52.6 (211.5)
Discontinued operations - 17.8
Dividends paid (121.2) (88.6)
Ordinary shareholders (121.2) (88.6)
Cash flows from investing activities (625.2) (634.4)
Capital expenditure - additions (639.6) (912.7)
Capital expenditure - proceeds on disposal 1.4 5.0
Sale of subsidiaries 4.9 146.6
Purchase of investments (10.9) (38.0)
Proceeds on the disposal of investments 21.8 4.8
Environmental and post-retirement health care payments (2.8) (3.9)
Discontinued operations - 163.8
Cash flows from financing activities 307.9 (75.7)
Loans received 1,004.4 446.0
Loans repaid (710.5) (530.2)
Minority shareholders loans received 6.7 -
Shares issued 7.3 8.5
Net cash inflow/(outflow) 75.0 (84.6)
Translation adjustment (60.5) 4.2
Cash at beginning of period 250.9 323.1
Cash at end of period 265.4 242.7
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 March 2009
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 mainly 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 March 2009, the
unrealised foreign exchange loss on the revaluation of the US$318 million loan
was R720 million. This loss was offset by R720 million cumulative positive
gains on the forward cover purchased at an original rate of R7.3279.
During the March quarter R88 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, the US$150 million was extended to the March quarter at an average
forward rate of R10.3818. During the March quarter US$30 million was settled
and the gain for the quarter was R12 million of which R7 million was accounted
for in the income statement and the balance of R5 million in equity. The
outstanding balance of US$120 million was extended into the June quarter at an
average forward rate of R10.2595. At the end of March 2009 the marked to market
value of the US$120 million forward cover was positive by R80 million (US$8
million).
Subsequent to the March quarter end the remaining forward cover of US$120
million was partly delivered into and the balance closed out, resulting in a
gain of R51 million which will be accounted for in the income statement in the
June quarter.
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. During the March quarter an additional US$8 million of instruments was
taken out. The total of US$64 million was extended to the June quarter at an
average forward rate of A$0.6445. The gain for the March quarter was A$1 million
of which a loss of A$1million was accounted for in the income statement and a
gain of A$2 million in equity. Subsequent to the March quarter end the forward
cover of US$64 million was partly delivered into and the balance closed out,
resulting in a gain of A$3 million which will be accounted for in the income
statement in the June quarter.
Subsequent to the March quarter end the forward cover of US$64 million was
partly delivered into and the balance closed out, resulting in a gain of A$3
million which will be accounted for in the income statement in the June quarter.
Ghana currency forward sales
During financial 2009, a South African rand forward cover was taken out to
cover commitments of Gold Fields Ghana Ltd. Outstanding at the end of March
2009 were forward cover contracts of R4 million, with a final expiry on 31 July
2009.
The marked to market value for the outstanding contracts at the end of the March
2009 quarter was US$18,000.
Diesel Hedge
Ghana
The Ghanaian operations 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$0.1 million at the end of the March 2009 quarter.
Australia
The Australian operations purchased two Asian style Singapore 0.5 Gasoil call
options with strike prices ranging from US$0.9128 per litre to US$1.0950 per
litre with a final expiry on 28 February 2010.
The marked to market value for the above call options was negligible at the end
of the March 2009 quarter.
F2009 F2010 F2011 F2012 F2013 Total
to
F2017
Pro-Forma*
headroom -
Loan
facilities,
including
preference
shares and
commercial
paper
R`million 2,500.0 1,068.0 651.0 - 1,500.0 5,719.0
US$`million - 39.5 325.3 516.9 99.3 981.0
Pro-Forma*
utilisation
- Loan
facilities,
including
preference
shares and
commercial
paper
R`million 932.0 1,068.0 651.0 - - 2,651.0
US$`million - 39.5 144.3 515.4 99.3 798.5
Dollar debt - 377.6 1,379.5 4,927.2 949.3 7,633.7
translated
to rand
Total (R`m) 932.0 1,445.6 2,030.5 4,927.2 949.3 10,284.7
Long-term 9,407.1
loans per
balance
sheet (R`m)
Current 877.6
portion of
long-term
loans per
balance
sheet (R`m)
Total per 10,284.7
balance
sheet (R`m)
*Pro-Forma: once re-financing of new facilities is complete.
Exchange rate: US$1 = R9.56 being the closing rate at the end of the March 2009
quarter.
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)
March 2009 4,566.5 2,434.2 867.7 762.9
Dec 2008 4,542.3 2,429.7 876.8 772.8
Financial year to date 13,342.0 7,331.6 2,625.1 2,321.1
Gold-in-process and
inventory change*
March 2009 (44.3) - - -
Dec 2008 (44.3) - - -
Financial year to date (151.9) - - -
Less:
Rehabilitation costs
March 2009 39.4 29.4 10.3 10.2
Dec 2008 27.6 18.9 7.0 6.7
Financial year to date 90.1 67.1 24.3 23.7
Production taxes
March 2009 5.5 5.5 0.8 2.7
Dec 2008 6.2 6.2 1.4 3.2
Financial year to date 19.3 19.3 4.3 8.9
General and admin
March 2009 181.8 98.7 36.3 29.4
Dec 2008 176.8 91.6 33.8 27.0
Financial year to date 521.6 288.8 107.1 86.1
Exploration costs
March 2009 (32.5) - - -
Dec 2008 18.8 - - -
Financial year to date - - - -
Cash operating costs
March 2009 4,328.0 2,300.6 820.3 720.6
Dec 2008 4,268.6 2,313.0 834.6 735.9
Financial year to date 12,559.1 6,956.4 2,489.4 2,202.4
Plus:
Production taxes
March 2009 5.5 5.5 0.8 2.7
Dec 2008 6.2 6.2 1.4 3.2
Financial year to date 19.3 19.3 4.3 8.9
Royalties
March 2009 90.6 - - -
Dec 2008 79.0 - - -
Financial year to date 236.3 - - -
TOTAL CASH COST (2)
March 2009 4,424.1 2,306.1 821.1 723.3
Dec 2008 4,353.8 2,319.2 836.0 739.1
Financial year to date 12,814.7 6,975.7 2,493.7 2,211.3
Plus:
Amortisation*
March 2009 1,105.0 520.8 167.4 180.4
Dec 2008 1,005.9 480.1 143.4 161.8
Financial year to date 2,943.7 1,463.3 450.4 517.0
Rehabilitation
March 2009 39.4 29.4 10.3 10.2
Dec 2008 27.6 18.9 7.0 6.7
Financial year to date 90.1 67.1 24.3 23.7
TOTAL PRODUCTION COST (3)
March 2009 5,568.5 2,856.3 998.8 913.9
Dec 2008 5,387.3 2,818.2 986.4 907.6
Financial year to date 15,848.5 8,506.1 2,968.4 2,752.0
Gold sold -
thousand ounces
March 2009 946.4 517.2 215.2 173.8
Dec 2008 909.6 500.6 194.9 151.7
Financial year to date 2,701.7 1,509.9 616.8 482.1
TOTAL CASH COST
- US$/oz
March 2009 471 449 384 419
Dec 2008 487 472 437 496
Financial year to date 518 504 441 501
TOTAL CASH COST
- R/kg
March 2009 150,301 143,340 122,680 133,796
Dec 2008 153,893 148,944 137,886 156,689
Financial year to date 152,500 148,536 129,989 147,479
TOTAL PRODUCTION COST
- US$/oz
March 2009 593 556 467 530
Dec 2008 603 573 515 609
Financial year to date 640 615 525 623
South African Operations
South
Beatrix Deep Total
Operating costs (1)
March 2009 507.7 295.9 2,132.3
Dec 2008 503.1 277.0 2,112.6
Financial year to date 1,509.4 876.0 6,010.4
Gold-in-process and
inventory change*
March 2009 - - (44.3)
Dec 2008 - - (44.3)
Financial year to date - - (151.9)
Less:
Rehabilitation costs
March 2009 5.5 3.4 10.0
Dec 2008 3.4 1.8 8.7
Financial year to date 12.2 6.9 23.0
Production taxes
March 2009 1.0 1.0 -
Dec 2008 0.7 0.9 -
Financial year to date 3.1 3.0 -
General and admin
March 2009 20.5 12.5 83.1
Dec 2008 19.1 11.7 85.2
Financial year to date 58.4 37.2 232.8
Exploration costs
March 2009 - - (32.5)
Dec 2008 - - 18.8
Financial year to date - - -
Cash operating costs
March 2009 480.7 279.0 2,027.4
Dec 2008 479.9 262.6 1,955.6
Financial year to date 1,435.7 828.9 5,602.7
Plus:
Production taxes
March 2009 1. 0 1. 0 -
Dec 2008 0.7 0.9 -
Financial year to date 3.1 3.0 -
Royalties
March 2009 - - 90.6
Dec 2008 - - 79.0
Financial year to date - - 236.3
TOTAL CASH COST (2)
March 2009 481.7 280.0 2,118.0
Dec 2008 480.6 263.5 2,034.6
Financial year to date 1,438.8 831.9 5,839.0
Plus:
Amortisation*
March 2009 99.6 73.4 584.2
Dec 2008 111.9 63.0 525.8
Financial year to date 310.4 185.5 1,480.4
Rehabilitation
March 2009 5.5 3.4 10.0
Dec 2008 3.4 1.8 8.7
Financial year to date 12.2 6.9 23.0
TOTAL PRODUCTION COST (3)
March 2009 586.8 356.8 2,712.2
Dec 2008 595.9 328.3 2,569.1
Financial year to date 1,761.4 1,024.3 7,342.4
Gold sold -
thousand ounces
March 2009 80.0 48.2 429.1
Dec 2008 106.7 47.3 409.0
Financial year to date 288.2 122.8 1,191.8
TOTAL CASH COST
- US$/oz
March 2009 606 585 497
Dec 2008 459 567 507
Financial year to date 545 739 535
TOTAL CASH COST
- R/kg
March 2009 193,532 186,667 158,687
Dec 2008 144,759 179,130 159,953
Financial year to date 160,491 217,775 157,521
TOTAL PRODUCTION COST
- US$/oz
March 2009 738 745 636
Dec 2008 569 707 640
Financial year to date 667 910 673
International Operations
Ghana Peru
Cerro
Tarkwa Damang Corona
Operating costs (1)
March 2009 811.2 311.9 258.3
Dec 2008 833.2 339.0 210.7
Financial year to date 2,333.1 925.7 521.7
Gold-in-process and
inventory change*
March 2009 (41.9) 1.4 14.1
Dec 2008 (53.8) (24.3) 7.6
Financial year to date (114.5) (27.8) (31.0)
Less:
Rehabilitation costs
March 2009 2.0 0.8 4.0
Dec 2008 2.0 - 3.7
Financial year to date 5.5 0.8 7.7
Production taxes
March 2009 - - -
Dec 2008 - - -
Financial year to date - - -
General and admin
March 2009 40.4 7.8 13.7
Dec 2008 40.4 6.6 12.8
Financial year to date 117.5 19.5 26.5
Exploration costs
March 2009 - (16.7) -
Dec 2008 - 12.1 -
Financial year to date - - -
Cash operating costs
March 2009 726.9 321.4 254.7
Dec 2008 737.0 296.0 201.8
Financial year to date 2,095.6 877.6 456.5
Plus:
Production taxes
March 2009 - - -
Dec 2008 - - -
Financial year to date - - -
Royalties
March 2009 33.7 14.0 6.8
Dec 2008 33.7 11.9 2.4
Financial year to date 99.0 34.8 9.2
TOTAL CASH COST (2)
March 2009 760.6 335.4 261.5
Dec 2008 770.7 307.9 204.2
Financial year to date 2,194.6 912.4 465.7
Plus:
Amortisation*
March 2009 158.1 48.6 140.6
Dec 2008 135.2 43.5 94.6
Financial year to date 408.2 117.5 235.2
Rehabilitation
March 2009 2.0 0.8 4.0
Dec 2008 2.0 - 3.7
Financial year to date 5.5 0.8 7.7
TOTAL PRODUCTION COST (3)
March 2009 920.7 384.8 406.1
Dec 2008 907.9 351.4 302.5
Financial year to date 2,608.3 1,030.7 708.6
Gold sold -
thousand ounces
March 2009 152.2 52.5 65.3
Dec 2008 139.3 50.4 65.5
Financial year to date 447.7 147.0 130.8
TOTAL CASH COST
- US$/oz
March 2009 503 643 422
Dec 2008 563 622 355
Financial year to date 535 678 389
TOTAL CASH COST
- R/kg
March 2009 160,701 205,263 134,757
Dec 2008 177,868 196,240 100,245
Financial year to date 157,590 199,563 114,451
TOTAL PRODUCTION COST
- US$/oz
March 2009 609 738 626
Dec 2008 664 709 526
Financial year to date 636 765 591
International Operations
Australia #
St Ives Agnew
Operating costs (1)
March 2009 591.4 159.5
Dec 2008 563.1 166.6
Financial year to date 1,714.7 515.2
Gold-in-process and
inventory change*
March 2009 (25.7) 7.8
Dec 2008 26.0 0.2
Financial year to date 3.3 18.1
Less:
Rehabilitation costs
March 2009 2.7 0.5
Dec 2008 2.1 0.9
Financial year to date 6.9 2.1
Production taxes
March 2009 - -
Dec 2008 - -
Financial year to date - -
General and admin
March 2009 15.6 5.6
Dec 2008 15.7 9.7
Financial year to date 47.7 21.6
Exploration costs
March 2009 (13.3) (2.5)
Dec 2008 5.5 1.2
Financial year to date - -
Cash operating costs
March 2009 560.7 163.7
Dec 2008 565.8 155.0
Financial year to date 1,663.4 509.6
Plus:
Production taxes
March 2009 - -
Dec 2008 - -
Financial year to date - -
Royalties
March 2009 25.0 11.1
Dec 2008 22.0 9.0
Financial year to date 64.5 28.8
TOTAL CASH COST (2)
March 2009 585.7 174.8
Dec 2008 587.8 164.0
Financial year to date 1,727.9 538.4
Plus:
Amortisation*
March 2009 236.9
Dec 2008 252.5
Financial year to date 719.5
Rehabilitation
March 2009 3.2
Dec 2008 3.0
Financial year to date 9.0
TOTAL PRODUCTION COST (3)
March 2009 1,000.6
Dec 2008 1,007.3
Financial year to date 2,994.8
Gold sold -
thousand ounces
March 2009 109.5 49.5
Dec 2008 108.7 45.0
Financial year to date 319.4 146.8
TOTAL CASH COST
- US$/oz
March 2009 538 355
Dec 2008 551 371
Financial year to date 591 400
TOTAL CASH COST
- R/kg
March 2009 171,911 113,433
Dec 2008 173,905 117,059
Financial year to date 173,938 117,889
TOTAL PRODUCTION COST
- US$/oz
March 2009 633
Dec 2008 667
Financial year to date 701
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 = R9.93 and US$1 = R9.82 for the March 2009 and
December 2008 quarters respectively.
Notional cash expenditure ##
South African Operations
Total
Mines Total Driefontein
Operating costs - R`m
March 2009 4,566.5 2,434.2 867.7
Dec 2008 4,542.3 2,429.7 876.8
Financial year to date 13,342.0 7,331.6 2,625.1
Capital expenditure - R`m
March 2009 1,689.2 889.1 261.6
Dec 2008 2,336.6 906.8 253.7
Financial year to date 5,828.2 2,584.0 723.0
Notional cash expenditure - R/kg
March 2009 213,403 206,570 168,729
Dec 2008 244,210 214,277 186,459
Financial year to date 227,745 211,136 174,526
Notional cash expenditure - US$/oz
March 2009 668 647 529
Dec 2008 774 679 591
Financial year to date 773 717 593
South African Operations
South
Kloof Beatrix Deep Total
Operating costs - R`m
March 2009 762.9 507.7 295.9 2,132.3
Dec 2008 772.8 503.1 277.0 2,112.6
Financial year to date 2,321.1 1,509.4 876.0 6,010.4
Capital expenditure - R`m
March 2009 224.3 138.5 264.7 800.1
Dec 2008 250.7 146.7 255.7 1,429.8
Financial year to date 713.2 438.7 709.1 3,244.2
Notional cash expenditure - R/kg
March 2009 182,612 259,622 373,733 221,715
Dec 2008 216,981 195,723 362,135 281,210
Financial year to date 202,368 217,301 414,948 248,706
Notional cash expenditure - US$/oz
March 2009 572 813 1,171 694
Dec 2008 687 620 1,147 891
Financial year to date 687 738 1,409 845
International Operations
Ghana
Tarkwa Damang
Operating costs - R`m
March 2009 811.2 311.9
Dec 2008 833.2 339.0
Financial year to date 2,333.1 925.7
Capital expenditure - R`m
March 2009 364.2 37.3
Dec 2008 641.5 34.0
Financial year to date 1,561.2 101.5
Notional cash expenditure - R/kg
March 2009 248,341 213,709
Dec 2008 340,342 237,731
Financial year to date 279,642 224,672
Notional cash expenditure - US$/oz
March 2009 778 669
Dec 2008 1,078 753
Financial year to date 950 763
International Operations
Peru Australia
Cerro
Corona St Ives Agnew
Operating costs - R`m
March 2009 258.3 591.4 159.5
Dec 2008 210.7 563.1 166.6
Financial year to date 521.7 1,714.7 515.2
Capital expenditure - R`m
March 2009 206.9 114.6 77.1
Dec 2008 515.0 161.8 77.5
Financial year to date 889.6 488.6 203.3
Notional cash expenditure - R/kg
March 2009 243,433 207,220 153,537
Dec 2008 379,154 214,467 174,233
Financial year to date 335,066 221,794 157,324
Notional cash expenditure - US$/oz
March 2009 762 649 481
Dec 2008 1,201 679 552
Financial year to date 1,138 753 534
## Notional cash expenditure (NCE) per kilogram (ounce) = operating costs plus
capital expenditure divided by gold produced.
Operating and financial results
SOUTH AFRICAN Total Mine South
RAND Operations African
Operations
Total Driefontein
Operating Results March 2009 13,278 3,197 1,537
Ore Dec 2008 13,350 3,458 1,608
milled/treated
(000 tons)
Financial 39,326 10,143 4,681
year to
date
Yield (grams per March 2009 2.2 5.0 4.4
ton)
Dec 2008 2.1 4.5 3.8
Financial 2.1 4.6 4.1
year to
date
Gold produced March 2009 29,314 16,088 6,693
(kilograms)
Dec 2008 28,168 15,571 6,063
Financial 84,174 46,963 19,184
year to
date
Gold sold March 2009 29,435 16,088 6,693
(kilograms)
Dec 2008 28,291 15,571 6,063
Financial 84,031 46,963 19,184
year to
date
Gold price March 2009 289,095 289,632 290,976
received (Rand
per kilogram)
Dec 2008 250,058 254,550 253,818
Financial 253,567 254,234 254,186
year to
date
Total cash cost March 2009 150,301 143,340 122,680
(Rand per
kilogram)
Dec 2008 153,893 148,944 137,886
Financial 152,500 148,536 129,989
year to
date
Notional cash March 2009 213,403 206,570 168,729
expenditure (Rand
per kilogram)
Dec 2008 244,210 214,277 186,459
Financial 227,745 211,136 174,526
year to
date
Operating costs March 2009 344 761 565
(Rand per ton)
Dec 2008 340 703 545
Financial 339 723 561
year to
date
Financial Results
(Rand million)
Revenue March 2009 8,509.5 4,659.6 1,947.5
Dec 2008 7,074.4 3,963.6 1,538.9
Financial 21,307.5 11,939.6 4,876.3
year to
date
Operating costs, March 2009 4,523.7 2,434.2 867.7
net
Dec 2008 4,508.5 2,429.7 876.8
Financial 13,181.9 7,331.6 2,625.1
year to
date
- Operating March 2009 4,566.5 2,434.2 867.7
costs
Dec 2008 4,542.3 2,429.7 876.8
Financial 13,342.0 7,331.6 2,625.1
year to
date
- Gold March 2009 (42.8) - -
inventory change
Dec 2008 (33.8) - -
Financial (160.1) - -
year to
date
Operating profit March 2009 3,985.8 2,225.4 1,079.8
Dec 2008 2,565.9 1,533.9 662.1
Financial 8,125.6 4,608.0 2,251.2
year to
date
Amortisation of March 2009 1,103.5 520.8 167.4
mining assets
Dec 2008 995.4 480.1 143.4
Financial 2,963.0 1,463.3 450.4
year to
date
Net operating March 2009 2,882.3 1,704.6 912.4
profit
Dec 2008 1,570.5 1,053.8 518.7
Financial 5,162.6 3,144.7 1,800.8
year to
date
Other March 2009 (268.9) (131.6) (49.8)
(expenses)/income
Dec 2008 (179.5) (93.3) (50.1)
Financial (580.0) (304.2) (129.8)
year to
date
Profit before March 2009 2,613.4 1,573.0 862.6
taxation
Dec 2008 1,391.0 960.5 468.6
Financial 4,582.6 2,840.5 1,671.0
year to
date
Mining and income March 2009 954.6 593.7 328.4
taxation
Dec 2008 471.4 311.2 160.3
Financial 1,709.2 1,056.0 603.9
year to
date
- Normal March 2009 513.3 464.4 282.2
taxation
Dec 2008 55.2 113.5 110.0
Financial 695.1 646.3 458.6
year to
date
- Royalties March 2009 97.6 - -
Dec 2008 79.0 - -
Financial 243.2 - -
year to
date
- Deferred March 2009 343.9 129.3 46.2
taxation
Dec 2008 337.2 197.7 50.3
Financial 770.9 409.7 145.3
year to
date
Profit before March 2009 1,658.8 979.3 534.2
exceptional items
Dec 2008 919.6 649.3 308.3
Financial 2,873.4 1,784.5 1,067.1
year to
date
Exceptional items March 2009 8.7 8.7 1.2
Dec 2008 3.6 4.9 -
Financial 127.7 128.8 2.9
year to
date
Net profit March 2009 1,667.5 988.0 535.4
Dec 2008 923.2 654.2 308.3
Financial 3,001.1 1,913.3 1,070.0
year to
date
Net profit March 2009 1,658.9 977.4 532.0
excluding gains
and losses on
foreign exchange,
financial
instruments and
exceptional items
Dec 2008 971.8 636.1 308.3
Financial 3,016.9 1,815.5 1,065.6
year to
date
Capital March 2009 1,689.2 889.1 261.6
expenditure
Dec 2008 2,336.6 906.8 253.7
Financial 5,828.2 2,584.0 723.0
year to
date
Planned for next 4,130.0 2,300.0 670.0
six months to
September 2009
SOUTH AFRICAN South African Operations
RAND
Kloof Beatrix South
Deep
Operating Results March 2009 689 629 342
Ore Dec 2008 768 798 284
milled/treated
(000 tons)
Financial year 2,428 2,217 817
to date
Yield (grams per March 2009 7.8 4.0 4.4
ton)
Dec 2008 6.1 4.2 5.2
Financial year 6.2 4.0 4.7
to date
Gold produced March 2009 5,406 2,489 1,500
(kilograms)
Dec 2008 4,717 3,320 1,471
Financial year 14,994 8,965 3,820
to date
Gold sold March 2009 5,406 2,489 1,500
(kilograms)
Dec 2008 4,717 3,320 1,471
Financial year 14,994 8,965 3,820
to date
Gold price March 2009 287,939 289,393 290,133
received (Rand
per kilogram)
Dec 2008 254,039 256,596 254,589
Financial year 254,395 251,556 260,131
to date
Total cash cost March 2009 133,796 193,532 186,667
(Rand per
kilogram)
Dec 2008 156,689 144,759 179,130
Financial year 147,479 160,491 217,775
to date
Notional cash March 2009 182,612 259,622 373,733
expenditure (Rand
per kilogram)
Dec 2008 216,981 195,723 362,135
Financial year 202,368 217,301 414,948
to date
Operating costs March 2009 1,107 807 865
(Rand per ton)
Dec 2008 1,006 630 975
Financial year 956 681 1,072
to date
Financial Results
(Rand million)
Revenue March 2009 1,556.6 720.3 435.2
Dec 2008 1,198.3 851.9 374.5
Financial year 3184.4 2,255.2 993.7
to date
Operating costs, March 2009 762.9 507.7 295.9
net
Dec 2008 772.8 503.1 277.0
Financial year 2,321.1 1,509.4 876.0
to date
- Operating March 2009 762.9 507.7 295.9
costs
Dec 2008 772.8 503.1 277.0
Financial year 2,321.1 1,509.4 876.0
to date
- Gold March 2009 - - -
inventory change
Dec 2008 - - -
Financial year - - -
to date
Operating profit March 2009 793.7 212.6 139.3
Dec 2008 425.5 348.8 97.5
Financial year 1,493.3 745.8 117.7
to date
Amortisation of March 2009 180.4 99.6 73.4
mining assets
Dec 2008 161.8 111.9 63.0
Financial year 517.0 310.4 185.5
to date
Net operating March 2009 613.3 113.0 65.9
profit
Dec 2008 263.7 236.9 34.5
Financial year 976.3 435.4 (67.8)
to date
Other March 2009 (50.3) (6.7) (24.8)
(expenses)/income
Dec 2008 (41.7) (5.5) 4.0
Financial year (115.9) (22.5) (36.0)
to date
Profit before March 2009 563.0 106.3 41.1
taxation
Dec 2008 222.0 231.4 38.5
Financial year 860.4 412.9 (103.8)
to date
Mining and income March 2009 206.3 43.3 15.7
taxation
Dec 2008 45.9 87.7 17.3
Financial year 284.7 162.4 5.0
to date
- Normal March 2009 182.1 0.1 -
taxation
Dec 2008 3.2 0.3 -
Financial year 187.2 0.5 -
to date
- Royalties March 2009 - - -
Dec 2008 - - -
Financial year - - -
to date
- Deferred March 2009 24.2 43.2 15.7
taxation
Dec 2008 42.7 87.4 17.3
Financial year 97.5 161.9 5.0
to date
Profit before March 2009 356.7 63.0 25.4
exceptional items
Dec 2008 176.1 143.7 21.2
Financial year 575.7 250.5 (108.8)
to date
Exceptional items March 2009 7.6 0.1 (0.2)
Dec 2008 - - 4.9
Financial year 7.6 0.3 118.0
to date
Net profit March 2009 364.3 63.1 25.2
Dec 2008 176.1 143.7 26.1
Financial year 583.3 250.8 9.2
to date
Net profit March 2009 357.3 63.0 25.1
excluding gains
and losses on
foreign exchange,
financial
instruments and
exceptional items
Dec 2008 176.1 143.7 8.0
Financial year 576.3 250.6 (77.0)
to date
Capital March 2009 224.3 138.5 264.7
expenditure
Dec 2008 250.7 146.7 255.7
Financial year 713.2 438.7 709.1
to date
Planned for next 560.0 330.0 740.0
six months to
September 2009
SOUTH AFRICAN International Operations
RAND
Total Ghana
Tarkwa Damang
Operating Results March 2009 10,081 5,216 1,334
Ore Dec 2008 9,892 5,384 1,216
milled/treated
(000 tons)
Financial 29,183 16,107 3,687
year to date
Yield (grams per March 2009 1.3 0.9 1.2
ton)
Dec 2008 1.3 0.8 1.3
Financial 1.3 0.9 1.2
year to date
Gold produced March 2009 13,226 4,733 1,634
(kilograms)
Dec 2008 12,597 4,333 1,569
Financial 37,211 13,926 4,572
year to date
Gold sold March 2009 13,347 4,733 1,634
(kilograms)
Dec 2008 12,720 4,333 1,569
Financial 37,068 13,926 4,572
year to date
Gold price March 2009 288,447 286,140 285,006
received (Rand
per kilogram)
Dec 2008 244,560 259,820 253,219
Financial 252,722 253,677 253,434
year to date
Total cash cost March 2009 158,687 160,701 205,263
(Rand per
kilogram)
Dec 2008 159,953 177,868 196,240
Financial 157,521 157,590 199,563
year to date
Notional cash March 2009 221,715 248,341 213,709
expenditure (Rand
per kilogram)
Dec 2008 281,210 340,342 237,731
Financial 248,706 279,642 224,672
year to date
Operating costs March 2009 212 156 234
(Rand per ton)
Dec 2008 214 155 279
Financial 206 145 251
year to date
Financial Results
(Rand million)
Revenue March 2009 3,849.9 1,354.3 465.7
Dec 2008 3,110.8 1,125.8 397.3
Financial 9,367.9 3,532.7 1,158.7
year to date
Operating costs, March 2009 2,089.5 760.6 313.4
net
Dec 2008 2,078.8 774.6 314.7
Financial 5,850.3 2,199.5 898.0
year to date
- Operating March 2009 2,132.3 811.2 311.9
costs
Dec 2008 2,112.6 833.2 339.0
Financial 6,010.4 2,333.1 925.7
year to date
- Gold March 2009 (42.8) (50.6) 1.5
inventory change
Dec 2008 (33.8) (58.6) (24.3)
Financial (160.1) (133.6) (27.7)
year to date
Operating profit March 2009 1,760.4 593.7 152.3
Dec 2008 1,032.0 351.2 82.6
Financial 3,517.6 1,333.2 260.7
year to date
Amortisation of March 2009 582.7 166.8 48.5
mining assets
Dec 2008 515.3 140.0 43.5
Financial 1,499.7 427.3 117.4
year to date
Net operating March 2009 1,177.7 426.9 103.8
profit
Dec 2008 516.7 211.2 39.1
Financial 2,017.9 905.9 143.3
year to date
Other March 2009 (137.3) (15.3) (31.7)
(expenses)/income
Dec 2008 (86.2) (58.8) (19.3)
Financial (275.8) (110.6) (64.7)
year to date
Profit before March 2009 1,040.4 411.6 72.1
taxation
Dec 2008 430.5 152.4 19.8
Financial 1,742.1 795.3 78.6
year to date
Mining and income March 2009 360.9 130.1 28.6
taxation
Dec 2008 160.2 54.4 11.6
Financial 653.2 269.3 43.4
year to date
- Normal March 2009 48.9 - 7.2
taxation
Dec 2008 (58.3) (58.3) -
Financial 48.8 - 7.2
year to date
- Royalties March 2009 97.6 40.6 14.0
Dec 2008 79.0 33.8 11.9
Financial 243.2 106.0 34.8
year to date
- Deferred March 2009 214.6 89.5 7.4
taxation
Dec 2008 139.5 78.9 (0.3)
Financial 361.2 163.3 1.4
year to date
Profit before March 2009 679.5 281.5 43.5
exceptional items
Dec 2008 270.3 98.0 8.2
Financial 1,088.9 526.0 35.2
year to date
Exceptional items March 2009 - - -
Dec 2008 (1.3) - -
Financial (1.1) - -
year to date
Net profit March 2009 679.5 281.5 43.5
Dec 2008 269.0 98.0 8.2
Financial 1,087.8 526.0 35.2
year to date
Net profit March 2009 681.5 281.5 44.7
excluding gains
and losses on
foreign exchange,
financial
instruments and
exceptional items
Dec 2008 335.7 140.7 19.9
Financial 1,201.4 590.3 56.4
year to date
Capital March 2009 800.1 364.2 37.3
expenditure
Dec 2008 1,429.8 641.5 34.0
Financial 3,244.2 1,561.2 101.5
year to date
Planned for next 1,830.0 775.0 100.0
six months to
September 2009
SOUTH AFRICAN International Operations
RAND
Peru Australia#
Cerro St Ives Agnew
Corona
Operating Results March 2009 1,434 1,820 277
Ore Dec 2008 1,199 1,840 253
milled/treated
(000 tons)
Financial 3,074 5,477 838
year to date
Yield (grams per March 2009 1.3 1.9 5.6
ton)
Dec 2008 1.6 1.8 5.5
Financial 1.4 1.8 5.4
year to date
Gold produced March 2009 1,911 3,407 1,541
(kilograms)
Dec 2008 1,914 3,380 1,401
Financial 4,212 9,934 4,567
year to date
Gold sold March 2009 2,032 3,407 1,541
(kilograms)
Dec 2008 2,037 3,380 1,401
Financial 4,069 9,934 4,567
year to date
Gold price March 2009 288,140 292,838 289,877
received (Rand
per kilogram)
Dec 2008 173,411 256,953 261,171
Financial 230,720 258,164 256,864
year to date
Total cash cost March 2009 128,691 171,911 113,433
(Rand per
kilogram)
Dec 2008 100,245 173,905 117,059
Financial 114,451 173,938 117,889
year to date
Notional cash March 2009 243,433 207,220 153,537
expenditure (Rand
per kilogram)
Dec 2008 379,154 214,467 174,233
Financial 335,066 221,794 157,324
year to date
Operating costs March 2009 180 325 576
(Rand per ton)
Dec 2008 176 306 658
Financial 170 313 615
year to date
Financial Results
(Rand million)
Revenue March 2009 585.5 997.7 446.7
Dec 2008 353.3 868.5 365.9
Financial 938.8 2,564.6 1,173.1
year to date
Operating costs, March 2009 289.0 556.0 170.5
net
Dec 2008 221.9 600.8 166.8
Financial 490.8 1,722.2 539.8
year to date
- Operating March 2009 258.3 591.4 159.5
costs
Dec 2008 210.7 563.1 166.6
Financial 521.7 1,714.7 515.2
year to date
- Gold March 2009 30.7 (35.4) 11.0
inventory change
Dec 2008 11.2 37.7 0.2
Financial (30.9) 7.5 24.6
year to date
Operating profit March 2009 296.5 441.7 276.2
Dec 2008 131.4 267.7 199.1
Financial 448.0 842.4 633.3
year to date
Amortisation of March 2009 124.0 243.4
mining assets
Dec 2008 91.0 240.8
Financial 246.2 708.8
year to date
Net operating March 2009 172.5 474.5
profit
Dec 2008 40.4 226.0
Financial 201.8 766.9
year to date
Other March 2009 (76.9) (13.4)
(expenses)/income
Dec 2008 (10.8) 2.7
Financial (100.3) (0.2)
year to date
Profit before March 2009 95.6 461.1
taxation
Dec 2008 29.6 228.7
Financial 101.5 766.7
year to date
Mining and income March 2009 37.0 165.2
taxation
Dec 2008 2.3 91.9
Financial 40.7 299.8
year to date
- Normal March 2009 41.7 -
taxation
Dec 2008 - -
Financial 41.6 -
year to date
- Royalties March 2009 6.8 36.2
Dec 2008 2.4 30.9
Financial (9.1) 93.3
year to date
- Deferred March 2009 (11.3) 129.0
taxation
Dec 2008 (0.1) 61.0
Financial (10.0) 206.5
year to date
Profit before March 2009 58.6 295.9
exceptional items
Dec 2008 27.3 136.8
Financial 60.8 466.9
year to date
Exceptional items March 2009 - -
Dec 2008 - (1.3)
Financial - (1.1)
year to date
Net profit March 2009 58.6 295.9
Dec 2008 27.3 135.5
Financial 60.8 465.8
year to date
Net profit March 2009 58.6 296.7
excluding gains
and losses on
foreign exchange,
financial
instruments and
exceptional items
Dec 2008 27.3 147.8
Financial 60.8 493.9
year to date
Capital March 2009 206.9 114.6 77.1
expenditure
Dec 2008 515.0 161.8 77.5
Financial 889.6 488.6 203.3
year to date
Planned for next 440.0 320.0 195.0
six months to
September 2009
# 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.
UNITED STATES Total Mine South African
DOLLARS Operations Operations
Total Driefontein
Operating Results March 2009 13,278 3,197 1,537
Ore Dec 2008 13,350 3,458 1,608
milled/treated
(000 tons)
Financial 39,326 10,143 4,681
year to
date
Yield (ounces per March 2009 0.071 0.162 0.140
ton)
Dec 2008 0.068 0.145 0.121
Financial 0.069 0.149 0.132
year to
date
Gold produced March 2009 942.5 517.2 215.2
(000 ounces)
Dec 2008 905.6 500.6 194.9
Financial 2,706.3 1,509.9 616.8
year to
date
Gold sold (000 March 2009 946.4 517.2 215.2
ounces)
Dec 2008 909.6 500.6 194.9
Financial 2,701.7 1,509.9 616.8
year to
date
Gold price March 2009 906 907 911
received (dollars
per ounce)
Dec 2008 792 806 804
Financial 861 863 863
year to
date
Total cash cost March 2009 471 449 384
(dollars per
ounce)
Dec 2008 487 472 437
Financial 518 504 441
year to
date
Notional cash March 2009 668 647 529
expenditure
(dollars per
ounce)
Dec 2008 774 679 591
Financial 773 717 593
year to
date
Operating costs March 2009 35 77 57
(dollars per ton)
Dec 2008 35 72 56
Financial 37 79 61
year to
date
Financial Results
($ million)
Revenue March 2009 868.5 474.3 198.8
Dec 2008 718.1 400.7 154.0
Financial 2,326.1 1,303.4 532.3
year to
date
Operating costs, March 2009 453.0 242.6 86.4
net
Dec 2008 450.0 239.0 86.4
Financial 1,439.1 800.4 286.6
year to
date
- Operating March 2009 457.1 242.6 86.4
costs
Dec 2008 452.6 239.0 86.4
Financial 1,456.6 800.4 286.6
year to
date
- Gold March 2009 (4.1) - -
inventory change
Dec 2008 (2.6) - -
Financial (17.5) - -
year to
date
Operating profit March 2009 415.5 231.7 112.4
Dec 2008 268.1 161.7 67.6
Financial 887.0 503.1 245.8
year to
date
Amortisation of March 2009 111.6 52.4 16.9
mining assets #
Dec 2008 100.1 47.6 14.2
Financial 323.5 159.7 49.2
year to
date
Net operating March 2009 304.1 179.3 95.4
profit
Dec 2008 168.0 114.1 53.4
Financial 563.6 343.3 196.6
year to
date
Other March 2009 (27.9) (13.6) (5.1)
(expenses)/income
Dec 2008 (18.4) (9.4) (5.2)
Financial (63.3) (33.2) (14.2)
year to
date
Profit before March 2009 276.2 165.7 90.3
taxation
Dec 2008 149.6 104.7 48.2
Financial 500.3 310.1 182.4
year to
date
Mining and income March 2009 100.6 62.7 34.5
taxation
Dec 2008 49.4 33.1 16.5
Financial 186.6 115.3 65.9
year to
date
- Normal March 2009 55.3 49.9 30.0
taxation
Dec 2008 4.3 11.9 11.5
Financial 75.9 70.6 50.1
year to
date
- Royalties March 2009 9.9 - -
Dec 2008 8.0 - -
Financial 26.5 - -
year to
date
- Deferred March 2009 35.4 12.7 4.6
taxation
Dec 2008 37.0 21.3 5.0
Financial 84.2 44.7 15.9
year to
date
Profit before March 2009 175.6 103.1 55.8
exceptional items
Dec 2008 100.2 71.6 31.7
Financial 313.7 194.7 116.4
year to
date
Exceptional items March 2009 0.4 0.4 0.1
Dec 2008 (1.4) (1.2) -
Financial 13.9 14.1 0.3
year to
date
Net profit March 2009 176.0 103.4 55.9
Dec 2008 98.9 70.4 31.7
Financial 327.7 208.8 116.7
year to
date
Net profit March 2009 174.6 102.7 55.5
excluding gains
and losses on
foreign exchange, Dec 2008 104.8 69.3 31.7
financial
instruments
and exceptional Financial 329.4 198.2 116.3
items year to
date
Capital March 2009 164.8 89.1 26.4
expenditure
Dec 2008 238.5 91.2 25.7
Financial 636.3 282.1 78.9
year to
date
Planned for next 459.0 255.6 74.4
six months to
September 2009
UNITED STATES South African Operations
DOLLARS
Kloof Beatrix South
Deep
Operating Results March 2009 689 629 342
Ore Dec 2008 768 798 284
milled/treated
(000 tons)
Financial 2,428 2,217 817
year to date
Yield (ounces per March 2009 0.252 0.127 0.141
ton)
Dec 2008 0.197 0.134 0.167
Financial 0.199 0.130 0.150
year to date
Gold produced March 2009 173.8 80.0 48.2
(000 ounces)
Dec 2008 151.7 106.7 47.3
Financial 482.1 288.2 122.8
year to date
Gold sold (000 March 2009 173.8 80.0 48.2
ounces)
Dec 2008 151.7 106.7 47.3
Financial 482.1 288.2 122.8
year to date
Gold price March 2009 902 906 909
received (dollars
per ounce)
Dec 2008 805 813 806
Financial 864 854 883
year to date
Total cash cost March 2009 419 606 585
(dollars per
ounce)
Dec 2008 496 459 567
Financial 501 545 739
year to date
Notional cash March 2009 572 813 1,171
expenditure
(dollars per
ounce)
Dec 2008 687 620 1,147
Financial 687 738 1,409
year to date
Operating costs March 2009 112 81 87
(dollars per ton)
Dec 2008 102 64 99
Financial 104 74 117
year to date
Financial Results
($ million)
Revenue March 2009 159.2 71.4 44.9
Dec 2008 120.3 86.6 39.8
Financial 416.4 246.2 108.5
year to date
Operating costs, March 2009 75.9 50.7 29.6
net
Dec 2008 76.0 49.7 26.9
Financial 253.4 164.8 95.6
year to date
- Operating March 2009 75.9 50.7 29.6
costs
Dec 2008 76.0 49.7 26.9
Financial 253.4 164.8 95.6
year to date
- Gold March 2009 - - -
inventory change
Dec 2008 - - -
Financial - - -
year to date
Operating profit March 2009 83.3 20.7 15.3
Dec 2008 44.3 36.9 12.9
Financial 163.0 81.4 12.8
year to date
Amortisation of March 2009 18.1 9.9 7.5
mining assets #
Dec 2008 15.8 11.2 6.4
Financial 56.4 33.9 20.3
year to date
Net operating March 2009 65.3 10.8 7.8
profit
Dec 2008 28.5 25.7 6.5
Financial 106.6 47.5 (7.4)
year to date
Other March 2009 (5.2) (0.6) (2.7)
(expenses)/income
Dec 2008 (4.4) (0.5) 0.7
Financial (12.7) (2.5) (3.9)
year to date
Profit before March 2009 60.1 10.2 5.2
taxation
Dec 2008 24.1 25.2 7.2
Financial 93.9 45.1 (11.3)
year to date
Mining and income March 2009 22.2 4.2 1.8
taxation
Dec 2008 4.7 9.5 2.4
Financial 31.1 17.7 0.5
year to date
- Normal March 2009 19.9 - -
taxation
Dec 2008 0.3 - -
Financial 20.4 0.1 -
year to date
- Royalties March 2009 - - -
Dec 2008 - - -
Financial - - -
year to date
- Deferred March 2009 2.3 4.1 1.8
taxation
Dec 2008 4.4 9.5 2.4
Financial 10.6 17.7 0.5
year to date
Profit before March 2009 37.9 6.0 3.4
exceptional items
Dec 2008 19.4 15.7 4.8
Financial 62.8 27.3 (11.9)
year to date
Exceptional items March 2009 0.8 - (0.6)
Dec 2008 - - (1.2)
Financial 0.8 - 12.9
year to date
Net profit March 2009 38.7 6.0 2.8
Dec 2008 19.4 15.7 3.6
Financial 63.7 27.4 1.0
year to date
Net profit March 2009 38.0 6.0 3.2
excluding gains
and losses on
foreign exchange, Dec 2008 19.4 15.7 2.6
financial
instruments
and exceptional Financial 62.9 27.4 (8.4)
items year to date
Capital March 2009 22.2 13.7 26.8
expenditure
Dec 2008 24.9 14.4 26.2
Financial 77.9 47.9 77.4
year to date
Planned for next 62.2 36.7 82.3
six months to
September 2009
Average exchange rates were US$1 = R9.93 and US$1 = R9.82 for the March 2009 and
December 2008 quarters respectively. The Australian dollar exchange rates were
A$1 = R6.59 and A$1 = R6.70 for the March 2009 and December 2008 quarters
respectively.
UNITED STATES International Operations
DOLLARS
Total Ghana
Tarkwa Damang
Operating Results March 2009 10,081 5,216 1,334
Ore Dec 2008 9,892 5,384 1,216
milled/treated
(000 tons)
Financial 29,183 16,107 3,687
year to date
Yield (ounces per March 2009 0.042 0.029 0.039
ton)
Dec 2008 0.041 0.026 0.041
Financial 0.041 0.028 0.040
year to date
Gold produced(000 March 2009 425.2 152.2 52.5
ounces)
Dec 2008 405.0 139.3 50.4
Financial 1,196.4 447.7 147.0
year to date
Gold sold (000 March 2009 429.1 152.2 52.5
ounces)
Dec 2008 409.0 139.3 50.4
Financial 1,191.8 447.7 147.0
year to date
Gold price March 2009 903 896 893
received
(dollars per Dec 2008 775 823 802
ounce)
Financial 858 861 861
year to date
Total cash cost March 2009 497 503 643
(dollars per Dec 2008 507 563 622
ounce)
Financial 535 535 678
year to date
Notional cash March 2009 694 778 669
expenditure
(dollars per Dec 2008 891 1,078 753
ounce)
Financial 845 950 763
year to date
Operating costs March 2009 21 16 24
(dollars per ton) Dec 2008 22 16 28
Financial 22 16 27
year to date
Financial Results
($ million)
Revenue March 2009 394.3 137.6 47.6
Dec 2008 317.5 112.1 40.7
Financial 1,022.7 385.7 126.5
year to date
Operating costs, March 2009 210.3 76.2 31.5
net
Dec 2008 211.0 78.1 31.7
Financial 638.7 240.1 98.0
year to date
- Operating March 2009 214.4 81.3 31.2
costs
Dec 2008 213.6 84.4 34.4
Financial 656.2 254.7 101.1
year to date
- Gold March 2009 (4.1) (5.1) 0.3
inventory change
Dec 2008 (2.6) (6.3) (2.7)
Financial (17.5) (14.6) (3.0)
year to date
Operating profit March 2009 184.0 61.4 16.1
Dec 2008 106.4 34.1 9.0
Financial 384.0 145.5 28.5
year to date
Amortisation of March 2009 59.2 17.0 4.9
mining assets #
Dec 2008 52.5 14.1 4.6
Financial 163.7 46.6 12.8
year to date
Net operating March 2009 124.8 44.4 11.2
profit
Dec 2008 53.9 20.0 4.4
Financial 220.3 98.9 15.6
year to date
Other March 2009 (14.4) (1.3) (3.3)
(expenses)/income
Dec 2008 (9.0) (6.1) (2.0)
Financial (30.1) (12.1) (7.1)
year to date
Profit before March 2009 110.4 43.1 7.9
taxation
Dec 2008 44.9 13.8 2.5
Financial 190.2 86.8 8.6
year to date
Mining and income March 2009 37.9 13.5 3.0
taxation
Dec 2008 16.2 4.9 1.3
Financial 71.3 29.4 4.7
year to date
- Normal March 2009 5.4 - 0.9
taxation
Dec 2008 (7.5) (7.5) -
Financial 5.3 - 0.8
year to date
- Royalties March 2009 9.9 4.2 1.3
Dec 2008 8.0 3.3 1.3
Financial 26.5 11.6 3.8
year to date
- Deferred March 2009 22.6 9.4 0.8
taxation
Dec 2008 15.8 9.1 0.1
Financial 39.4 17.8 0.2
year to date
Profit before March 2009 72.5 29.6 4.9
exceptional items
Dec 2008 28.7 8.9 1.2
Financial 118.9 57.4 3.8
year to date
Exceptional items March 2009 0.1 - -
Dec 2008 (0.2) - -
Financial (0.1) - -
year to date
Net profit March 2009 72.6 29.6 4.9
Dec 2008 28.5 8.9 1.2
Financial 118.9 57.4 3.8
year to date
Net profit March 2009 71.9 29.2 4.8
excluding gains
and losses on
foreign exchange, Dec 2008 35.4 13.5 2.4
financial
instruments
and exceptional Financial 131.2 64.4 6.2
items year to date
Capital March 2009 75.7 34.1 3.8
expenditure
Dec 2008 147.3 64.6 3.4
Financial 354.2 170.4 11.1
year to date
Planned for next 203.4 86.1 11.1
six months to
September 2009
UNITED STATES International Operations
DOLLARS
Peru Australia #
Cerro St Ives Agnew
Corona
Operating Results March 2009 1,434 1,820 277
Ore Dec 2008 1,199 1,840 253
milled/treated
(000 tons)
Financial 3,074 5,477 838
year to date
Yield (ounces per March 2009 0.043 0.060 0.179
ton)
Dec 2008 0.051 0.059 0.178
Financial 0.044 0.058 0.175
year to date
Gold produced(000 March 2009 61.4 109.5 49.5
ounces)
Dec 2008 61.5 108.7 45.0
Financial 135.4 319.4 146.8
year to date
Gold sold (000 March 2009 65.3 109.5 49.5
ounces)
Dec 2008 65.5 108.7 45.0
Financial 130.8 319.4 146.8
year to date
Gold price March 2009 903 917 908
received
(dollars per Dec 2008 614 814 827
ounce)
Financial 783 877 872
year to date
Total cash cost March 2009 422 538 355
(dollars per Dec 2008 355 551 371
ounce)
Financial 389 591 400
year to date
Notional cash March 2009 762 649 481
expenditure
(dollars per Dec 2008 1,201 679 552
ounce)
Financial 1,138 753 534
year to date
Operating costs March 2009 18 33 58
(dollars per ton) Dec 2008 18 31 67
Financial 19 34 67
year to date
Financial Results
($ million)
Revenue March 2009 62.3 101.5 45.3
Dec 2008 40.2 88.2 36.2
Financial 102.5 280.0 128.1
year to date
Operating costs, March 2009 30.6 55.2 16.9
net
Dec 2008 25.6 59.8 15.9
Financial 53.6 188.0 58.9
year to date
- Operating March 2009 26.9 59.2 15.7
costs
Dec 2008 23.2 55.6 16.1
Financial 57.0 187.2 56.2
year to date
- Gold March 2009 3.6 (4.1) 1.2
inventory change
Dec 2008 2.4 4.2 (0.2)
Financial (3.4) 0.8 2.7
year to date
Operating profit March 2009 31.7 46.4 28.4
Dec 2008 14.7 28.5 20.3
Financial 48.9 92.0 69.1
year to date
Amortisation of March 2009 12.9 24.4
mining assets #
Dec 2008 9.9 24.0
Financial 26.9 77.4
year to date
Net operating March 2009 18.8 50.4
profit
Dec 2008 4.8 24.7
Financial 22.0 83.7
year to date
Other March 2009 (8.3) (1.5)
(expenses)/income
Dec 2008 (1.0) 0.1
Financial (10.9) -
year to date
Profit before March 2009 10.4 49.0
taxation
Dec 2008 3.7 24.9
Financial 11.1 83.7
year to date
Mining and income March 2009 4.0 17.4
taxation
Dec 2008 0.2 9.8
Financial 4.4 32.7
year to date
- Normal March 2009 4.5 -
taxation
Dec 2008 - -
Financial 4.5 -
year to date
- Royalties March 2009 0.7 3.7
Dec 2008 0.3 3.1
Financial 1.0 10.2
year to date
- Deferred March 2009 (1.3) 13.7
taxation
Dec 2008 - 6.7
Financial (1.1) 22.5
year to date
Profit before March 2009 6.5 31.6
exceptional items
Dec 2008 3.5 15.1
Financial 6.6 51.0
year to date
Exceptional items March 2009 - 0.1
Dec 2008 - (0.2)
Financial - (0.1)
year to date
Net profit March 2009 6.5 31.6
Dec 2008 3.5 14.9
Financial 6.6 50.9
year to date
Net profit March 2009 6.4 31.4
excluding gains
and losses on
foreign exchange, Dec 2008 3.5 16.1
financial
instruments
and exceptional Financial 6.6 53.9
items year to date
Capital March 2009 19.4 10.7 7.8
expenditure
Dec 2008 56.1 15.2 8.1
Financial 97.1 53.3 22.2
year to date
Planned for next 48.9 35.6 21.7
six months to
September 2009
UNITED STATES Australian Dollars
DOLLARS
Australia #
St Ives Agnew
Operating Results March 2009 1,820 277
Ore Dec 2008 1,840 253
milled/treated
(000 tons)
Financial 5,477 838
year to date
Yield (ounces per March 2009 0.060 0.179
ton)
Dec 2008 0.059 0.178
Financial 0.058 0.175
year to date
Gold produced(000 March 2009 109.5 49.5
ounces)
Dec 2008 108.7 45.0
Financial 319.4 146.8
year to date
Gold sold (000 March 2009 109.5 49.5
ounces)
Dec 2008 108.7 45.0
Financial 319.4 146.8
year to date
Gold price March 2009 1,382 1,368
received
(dollars per Dec 2008 1,193 1,212
ounce)
Financial 1,190 1,184
year to date
Total cash cost March 2009 811 535
(dollars per Dec 2008 807 543
ounce)
Financial 801 543
year to date
Notional cash March 2009 978 725
expenditure
(dollars per Dec 2008 996 809
ounce)
Financial 1,022 725
year to date
Operating costs March 2009 49 87
(dollars per ton) Dec 2008 46 98
Financial 46 91
year to date
Financial Results
($ million)
Revenue March 2009 150.2 67.3
Dec 2008 129.5 54.8
Financial 379.9 173.8
year to date
Operating costs, March 2009 84.2 25.8
net
Dec 2008 89.9 25.1
Financial 255.1 80.0
year to date
- Operating March 2009 89.4 24.2
costs
Dec 2008 84.3 25.0
Financial 254.0 76.3
year to date
- Gold March 2009 (5.1) 1.6
inventory change
Dec 2008 5.5 0.1
Financial 1.1 3.6
year to date
Operating profit March 2009 66.0 41.5
Dec 2008 39.7 29.7
Financial 124.8 93.8
year to date
Amortisation of March 2009 36.8
mining assets #
Dec 2008 36.0
Financial 105.0
year to date
Net operating March 2009 70.7
profit
Dec 2008 33.3
Financial 113.6
year to date
Other March 2009 (1.9)
(expenses)/income
Dec 2008 0.4
Financial -
year to date
Profit before March 2009 68.8
taxation
Dec 2008 33.8
Financial 113.6
year to date
Mining and income March 2009 24.7
taxation
Dec 2008 13.6
Financial 44.4
year to date
- Normal March 2009 -
taxation
Dec 2008 -
Financial -
year to date
- Royalties March 2009 5.5
Dec 2008 4.6
Financial 13.8
year to date
- Deferred March 2009 19.2
taxation
Dec 2008 9.0
Financial 30.6
year to date
Profit before March 2009 44.1
exceptional items
Dec 2008 20.2
Financial 69.2
year to date
Exceptional items March 2009 -
Dec 2008 (0.2)
Financial (0.2)
year to date
Net profit March 2009 44.1
Dec 2008 20.0
Financial 69.0
year to date
Net profit March 2009 44.3
excluding gains
and losses on
foreign exchange, Dec 2008 21.8
financial
instruments
and exceptional Financial 73.2
items year to date
Capital March 2009 17.5 11.6
expenditure
Dec 2008 24.4 11.5
Financial 72.4 30.1
year to date
Planned for next 49.2 30.0
six months to
September 2009
# 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.
Underground and surface
South African rand and metric units
Total Mine
Operating Results Operations
Ore milled / treated (000 ton)
- underground March 2009 2,889
Dec 2008 2,900
Financial year to date 8,487
- surface March 2009 10,389
Dec 2008 10,450
Financial year to date 30,839
- total March 2009 13,278
Dec 2008 13,350
Financial year to date 39,326
Yield (grams per ton)
- underground March 2009 6.4
Dec 2008 6.2
Financial year to date 6.3
- surface March 2009 1.1
Dec 2008 1.0
Financial year to date 1.0
- combined March 2009 2.2
Dec 2008 2.1
Financial year to date 2.1
Gold produced (kilograms)
- underground March 2009 18,388
Dec 2008 17,899
Financial year to date 53,202
- surface March 2009 10,926
Dec 2008 10,269
Financial year to date 30,972
- total March 2009 29,314
Dec 2008 28,168
Financial year to date 84,174
Operating costs (Rand per ton)
- underground March 2009 950
Dec 2008 953
Financial year to date 969
- surface March 2009 175
Dec 2008 170
Financial year to date 166
- total March 2009 344
Dec 2008 340
Financial year to date 339
South African Operations
Operating Results Total
Ore milled / treated (000 ton)
- underground March 2009 2,357
Dec 2008 2,411
Financial year to date 7,045
- surface March 2009 840
Dec 2008 1,047
Financial year to date 3,098
- total March 2009 3,197
Dec 2008 3,458
Financial year to date 10,143
Yield (grams per ton)
- underground March 2009 6.6
Dec 2008 6.2
Financial year to date 6.4
- surface March 2009 0.8
Dec 2008 0.6
Financial year to date 0.7
- combined March 2009 5.0
Dec 2008 4.5
Financial year to date 4.6
Gold produced (kilograms)
- underground March 2009 15,456
Dec 2008 14,915
Financial year to date 44,838
- surface March 2009 632
Dec 2008 656
Financial year to date 2,125
- total March 2009 16,088
Dec 2008 15,571
Financial year to date 46,963
Operating costs (Rand per ton)
- underground March 2009 1,000
Dec 2008 973
Financial year to date 1,003
- surface March 2009 92
Dec 2008 79
Financial year to date 85
- total March 2009 761
Dec 2008 703
Financial year to date 723
Operating Results Driefontein Kloof
Ore milled / treated (000 ton)
- underground March 2009 868 543
Dec 2008 751 614
Financial year to date 2,343 1,760
- surface March 2009 669 146
Dec 2008 857 154
Financial year to date 2,338 668
- total March 2009 1,537 689
Dec 2008 1,608 768
Financial year to date 4,681 2,428
Yield (grams per ton)
- underground March 2009 7.1 9.8
Dec 2008 7.4 7.5
Financial year to date 7.5 8.3
- surface March 2009 0.8 0.6
Dec 2008 0.6 0.6
Financial year to date 0.7 0.6
- combined March 2009 4.4 7.8
Dec 2008 3.8 6.1
Financial year to date 4.1 6.2
Gold produced (kilograms)
- underground March 2009 6,179 5,317
Dec 2008 5,591 4,620
Financial year to date 17,643 14,563
- surface March 2009 514 89
Dec 2008 472 97
Financial year to date 1,541 431
- total March 2009 6,693 5,406
Dec 2008 6,063 4,717
Financial year to date 19,184 14,994
Operating costs (Rand per ton)
- underground March 2009 928 1,380
Dec 2008 1,081 1,233
Financial year to date 1,038 1,281
- surface March 2009 93 92
Dec 2008 76 103
Financial year to date 82 99
- total March 2009 565 1,107
Dec 2008 545 1,006
Financial year to date 561 956
South
Operating Results Beatrix Deep#
Ore milled / treated (000 ton)
- underground March 2009 629 317
Dec 2008 798 248
Financial year to date 2,217 725
- surface March 2009 - 25
Dec 2008 - 36
Financial year to date - 92
- total March 2009 629 342
Dec 2008 798 284
Financial year to date 2,217 817
Yield (grams per ton)
- underground March 2009 4.0 5.7
Dec 2008 4.2 6.8
Financial year to date 4.0 5.9
- surface March 2009 - 1.2
Dec 2008 - 2.4
Financial year to date - 1.7
- combined March 2009 4.0 4.4
Dec 2008 4.2 5.2
Financial year to date 4.0 4.7
Gold produced (kilograms)
- underground March 2009 2,489 1,471
Dec 2008 3,320 1,384
Financial year to date 8,965 3,667
- surface March 2009 - 29
Dec 2008 - 87
Financial year to date - 153
- total March 2009 2,489 1,500
Dec 2008 3,320 1,471
Financial year to date 8,965 3,820
Operating costs (Rand per ton)
- underground March 2009 807 929
Dec 2008 630 1,109
Financial year to date 681 1,201
- surface March 2009 - 56
Dec 2008 - 53
Financial year to date - 54
- total March 2009 807 865
Dec 2008 630 975
Financial year to date 681 1,072
International Operations
Operating Results Total
Ore milled / treated (000 ton)
- underground March 2009 532
Dec 2008 489
Financial year to date 1,442
- surface March 2009 9,549
Dec 2008 9,403
Financial year to date 27,741
- total March 2009 10,081
Dec 2008 9,892
Financial year to date 29,183
Yield (grams per ton)
- underground March 2009 5.5
Dec 2008 6.1
Financial year to date 5.8
- surface March 2009 1.1
Dec 2008 1.0
Financial year to date 1.0
- combined March 2009 1.3
Dec 2008 1.3
Financial year to date 1.3
Gold produced (kilograms)
- underground March 2009 2,932
Dec 2008 2,984
Financial year to date 8,364
- surface March 2009 10,294
Dec 2008 9,613
Financial year to date 28,847
- total March 2009 13,226
Dec 2008 12,597
Financial year to date 37,211
Operating costs (Rand per ton)
- underground March 2009 728
Dec 2008 853
Financial year to date 804
- surface March 2009 183
Dec 2008 180
Financial year to date 175
- total March 2009 212
Dec 2008 214
Financial year to date 206
Ghana
Operating Results Tarkwa Damang
Ore milled / treated (000 ton)
- underground March 2009 - -
Dec 2008 - -
Financial year to date - -
- surface March 2009 5,216 1,334
Dec 2008 5,384 1,216
Financial year to date 16,107 3,687
- total March 2009 5,216 1,334
Dec 2008 5,384 1,216
Financial year to date 16,107 3,687
Yield (grams per ton)
- underground March 2009 - -
Dec 2008 - -
Financial year to date - -
- surface March 2009 0.9 1.2
Dec 2008 0.8 1.3
Financial year to date 0.9 1.2
- combined March 2009 0.9 1.2
Dec 2008 0.8 1.3
Financial year to date 0.9 1.2
Gold produced (kilograms)
- underground March 2009 - -
Dec 2008 - -
Financial year to date - -
- surface March 2009 4,733 1,634
Dec 2008 4,333 1,569
Financial year to date 13,926 4,572
- total March 2009 4,733 1,634
Dec 2008 4,333 1,569
Financial year to date 13,926 4,572
Operating costs (Rand per ton)
- underground March 2009 - -
Dec 2008 - -
Financial year to date - -
- surface March 2009 156 234
Dec 2008 155 279
Financial year to date 145 251
- total March 2009 156 234
Dec 2008 155 279
Financial year to date 145 251
Peru
Cerro Australia
Operating Results Corona St Ives Agnew
Ore milled / treated (000 ton)
- underground March 2009 - 322 210
Dec 2008 - 329 160
Financial year to date - 896 546
- surface March 2009 1,434 1,498 67
Dec 2008 1,199 1,511 93
Financial year to date 3,074 4,581 292
- total March 2009 1,434 1,820 277
Dec 2008 1,199 1,840 253
Financial year to date 3,074 5,477 838
Yield (grams per ton)
- underground March 2009 - 4.5 7.1
Dec 2008 - 5.2 8.0
Financial year to date - 4.7 7.7
- surface March 2009 1.3 1.3 0.8
Dec 2008 1.6 1.1 1.2
Financial year to date 1.4 1.3 1.3
- combined March 2009 1.3 1.9 5.6
Dec 2008 1.6 1.8 5.5
Financial year to date 1.4 1.8 5.4
Gold produced (kilograms)
- underground March 2009 - 1,446 1,486
Dec 2008 - 1,699 1,285
Financial year to date - 4,168 4,196
- surface March 2009 1,911 1,961 55
Dec 2008 1,914 1,681 116
Financial year to date 4,212 5,766 371
- total March 2009 1,911 3,407 1,541
Dec 2008 1,914 3,380 1,401
Financial year to date 4,212 9,934 4,567
Operating costs (Rand per ton)
- underground March 2009 - 773 660
Dec 2008 - 833 893
Financial year to date - 810 794
- surface March 2009 180 229 310
Dec 2008 176 191 253
Financial year to date 170 216 280
- total March 2009 180 325 576
Dec 2008 176 306 658
Financial year to date 170 313 615
# March quarter includes 62,000 tons (December quarter 43,000 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.
Capital Expenditure Total Mine
Operations
Figures are R`m
Sustaining March 2009 1,333.3
capital Dec 2008 1,299.5
Financial year to date 3,729.5
Project capital March 2009 264.7
Dec 2008 952.1
Financial year to date 1,851.1
Uranium capital March 2009 24.6
Dec 2008 20.2
Financial year to date 45.0
Brownfields March 2009 66.6
Exploration Dec 2008 64.8
Financial year to date 202.6
Total capital March 2009 1,689.2
expenditure Dec 2008 2,336.6
Financial year to date 5,828.2
South African Operations
Capital Expenditure
Total
Figures are R`m
Sustaining March 2009 599.8
capital Dec 2008 630.9
Financial year to date 1,829.9
Project capital March 2009 264.7
Dec 2008 255.7
Financial year to date 709.1
Uranium capital March 2009 24.6
Dec 2008 20.2
Financial year to date 45.0
Brownfields March 2009 -
exploration Dec 2008 -
Financial year to date -
Total capital March 2009 889.1
expenditure Dec 2008 906.8
Financial year to date 2,584.0
Capital Expenditure
Driefontein Kloof
Figures are R`m
Sustaining March 2009 237.0 224.3
capital Dec 2008 233.5 250.7
Financial year to date 678.0 713.2
Project capital March 2009 - -
Dec 2008 - -
Financial year to date - -
Uranium capital March 2009 24.6 -
Dec 2008 20.2 -
Financial year to date 45.0 -
Brownfields March 2009 - -
exploration Dec 2008 - -
Financial year to date - -
Total capital March 2009 261.6 224.3
expenditure Dec 2008 253.7 250.7
Financial year to date 723.0 713.2
Capital Expenditure South
Beatrix Deep
Figures are R`m
Sustaining March 2009 138.5 -
capital Dec 2008 146.7 -
Financial year to date 438.7 -
Project capital March 2009 - 264.7
Dec 2008 - 255.7
Financial year to date - 709.1
Uranium capital March 2009 - -
Dec 2008 - -
Financial year to date - -
Brownfields March 2009 - -
exploration Dec 2008 - -
Financial year to date - -
Total capital March 2009 138.5 264.7
expenditure Dec 2008 146.7 255.7
Financial year to date 438.7 709.1
International Operations
Capital Expenditure
Total
Figures are R`m
Sustaining March 2009 733.5
capital Dec 2008 668.6
Financial year to date 1,899.6
Project capital March 2009 -
Dec 2008 696.4
Financial year to date 1,142.0
Uranium capital March 2009 -
Dec 2008 -
Financial year to date -
Brownfields March 2009 66.6
exploration Dec 2008 64.8
Financial year to date 202.6
Total capital March 2009 800.1
expenditure Dec 2008 1,429.8
Financial year to date 3,244.2
Capital Expenditure Ghana
Tarkwa Damang
Figures are R`m
Sustaining March 2009 364.2 30.0
capital Dec 2008 316.1 28.0
Financial year to date 957.9 83.1
Project capital March 2009 - -
Dec 2008 325.4 -
Financial year to date 603.3 -
Uranium capital March 2009 - -
Dec 2008 - -
Financial year to date - -
Brownfields March 2009 - 7.3
exploration Dec 2008 - 6.0
Financial year to date - 18.4
Total capital March 2009 364.2 37.3
expenditure Dec 2008 641.5 34.0
Financial year to date 1,561.2 101.5
Capital Expenditure Peru
Cerro Australia
Corona St Ives Agnew
Figures are R`m
Sustaining March 2009 206.9 83.1 49.3
capital Dec 2008 144.0 124.5 56.0
Financial year to date 350.9 376.3 131.4
Project capital March 2009 - - -
Dec 2008 371.0 - -
Financial year to date 538.7 - -
Uranium capital March 2009 - - -
Dec 2008 - - -
Financial year to date - - -
Brownfields March 2009 - 31.5 27.8
exploration Dec 2008 - 37.3 21.5
Financial year to date - 112.3 71.9
Total capital March 2009 206.9 114.6 77.1
expenditure Dec 2008 515.0 161.8 77.5
Financial year to date 889.6 488.6 203.3
Development results
Development values represent the actual results of sampling and no allowance
has been made for any adjustments which may be necessary when estimating ore
reserves. All figures below exclude shaft sinking metres.
Driefontein March 2009 quarter
Carbon Main VCR
Reef Leader
Advanced (m) 3,414 1,041 1,535
Advanced on reef (m) 640 311 136
Sampled (m) 480 315 102
Channel width (cm) 61 71 29
Average value - (g/t) 19.1 6.1 6.0
- (cm.g/t) 1,159 429 1761
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
- (cm.g/t) 1,317 520 782
Driefontein Year to date F2009
Carbon Main VCR
Reef Leader
Advanced (m) 6,305 2,888 4,094
Advanced on reef (m) 1,221 1,140 362
Sampled (m) 975 987 243
Channel width (cm) 48 52 43
Average value - (g/t) 25.7 9.1 12.6
- (cm.g/t) 1,233 472 547
Kloof March 2009 quarter
Kloof Main VCR
Reef
Advanced (m) 21 693 3,773
Advanced on reef (m) 9 127 574
Sampled (m) 9 147 528
Channel width (cm) 91 127 129
Average value - (g/t) 1.5 7.3 15.0
- (cm.g/t) 133 934 1,937
Kloof December 2008 quarter
Kloof Main VCR
Reef
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
Kloof Year to date F2009
Kloof Main VCR
Reef
Advanced (m) 355 2,364 14,376
Advanced on reef (m) 170 679 1,965
Sampled (m) 177 669 1,783
Channel width (cm) 184 113 126
Average value - (g/t) 3.7 6.3 17.6
- (cm.g/t) 689 716 2,219
Beatrix March 2009 quarter
Reef Beatrix Kalkoenkrans
Advanced (m) 5,312 1,939
Advanced on reef (m) 1,600 165
Sampled (m) 1,752 168
Channel width (cm) 100 128
Average value - (g/t) 7.0 16.7
- (cm.g/t) 693 2,139
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
Beatrix Year to date F2009
Reef Beatrix Kalkoenkrans
Advanced (m) 18,290 6,275
Advanced on reef (m) 4,647 546
Sampled (m) 4,545 480
Channel width (cm) 100 130
Average value - (g/t) 7.2 18.8
- (cm.g/t) 727 2,439
South
Deep March 2009 December 2008 Year to
quarter quarter date F2009
Reef Elsburg(2,3) Elsburg
Elsburg
Advanced (m) 1,592 2,180 5,061
Advanced on reef (m) 855 1,399 3,357
Average value - (g/t) 6.4 5.8 5.4
1) Less development at the higher grade 1, 4 and 5 shafts as a result of the
secondary support initiative, with some prospecting in a lower grade VCR
zone at 2 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: 08716640300 (from UK calls)
(+44)(20) 8639 3399 (from outside UK)
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, Ghana,
Australia, Peru and elsewhere; the ability to achieve anticipated efficiencies
and other cost savings in connection with past and future acquisitions,
exploration and development activities; decreases in the market price of gold
or copper; hazards associated with underground and surface gold mining; labour
disruptions; availability terms and deployment of capital or credit; changes in
government regulations, particularly environmental regulations; and new
legislation affecting mining and mineral rights; changes in exchange rates;
currency devaluations; inflation and other macro-economic factors, industrial
action, regulatory temporary stoppages of mines for safety reasons; and the
impact of the AIDS crisis in South Africa. These forward looking statements
speak only as of the date of this document.
The company undertakes no obligation to update publicly or release any
revisions to these forward looking statements to reflect events or
circumstances after the date of this document or to reflect the occurrence of
unanticipated events.
Directors
A J Wright (Chairman)
N J Holland *
(Chief Executive Officer)
K Ansah #
CA Carolus
R Danino**
J G Hopwood
G Marcus
R P Menell
D N Murray
D M J Ncube
R L Pennant-Rea *
C I von Christierson
G M Wilson
Non-independent Director
# Ghanaian
Independent Director
* British
** Peruvian
Date: 07/05/2009 08:15:14 Produced by the JSE SENS Department.
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information disseminated through SENS.
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