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GFI
GOGOF
GFI - Gold Fields Limited - Financial Report
Gold Fields Limited
Incorporated in the Republic of South Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN - ZAE 000018123
RECORD SAFETY YEAR.
PRODUCTION AND COST BEAT GUIDANCE FOR THE QUARTER.
JOHANNESBURG. 6 August 2009, Gold Fields Limited (NYSE & JSE: GFI) today
announced normalised earnings excluding gains and losses on foreign exchange,
financial instruments, exceptional items and share of profits and losses of
associates after taxation for the June 2009 quarter of R949 million, compared
with normalised earnings of R1,369 million and R943 million for the March 2009
and the December 2008 quarters respectively. In US dollar terms normalised
earnings for the June 2009 quarter were US$109 million, compared with of
US$146
million and US$123 million for the March 2009 and the December 2008 quarters
respectively.
June 2009 quarter salient features:
Attributable gold production increased by 4 per cent to 906,000 ounces;
Total cash costs decreased 6 per cent from R150,301 per kilogram (US$471 per
ounce) to R140,916 per kilogram (US$512 per ounce);
Notional cash expenditure decreased 5 per cent from R213,403 per kilogram
(US$668 per ounce) to R203,042 per kilogram (US$738 per ounce);
Commenced construction of Athena, the fourth underground mine at St Ives, in
July
Offer post quarter end to be made for Glencar which owns the Komana project
in Mali, 29.9 per cent acquired to date;
The 19.9 per cent stake in Sino Gold sold for a consideration of US$282
million and closed in July;
Net debt declines from R7.7 billion to R6.1 billion.
A final dividend of 80 SA cents per share is payable on 31 August 2009, giving
a total dividend for financial 2009 of 110 SA cents per share.
Statement by Nick Holland, Chief Executive Officer of Gold Fields:
"The final quarter of F2009 was the third consecutive quarter of strong and
improved operational performance for Gold Fields against our strategic
objectives of delivering a step change in our safety performance; increasing
our production base; and maintaining rigorous cost control aimed at improving
the generation of free cash flow.
F2009 has, by a considerable margin, been the best safety year in the history
of Gold Fields. Never the less, I regret to report eight fatal injuries for
the
quarter. Seven of these were seismically related and occurred in a two-week
period late in the quarter, when a wave of seismicity struck the West Wits
region.
These accidents bring the total number of fatalities for F2009 to 21, compared
with 47 during F2008, which represents a 55 per cent improvement year on year.
I deeply regret this loss of life and it remains my personal objective, and
that of every person in Gold Fields, to eliminate all serious and fatal
accidents on our mines, and not to mine if we cannot mine safely. While this
is
a profound commitment to make in an industry characterised by high levels of
risk, particularly in the seismically active deep level mining environment in
South Africa, it is a moral and commercial imperative for the sustainability
of
our industry.
Despite the impact of the unusual incidence of seismicity which affected the
production of both Kloof and Driefontein, Gold Fields had a strong quarter,
beating guidance and increasing production by 4 per cent over Q3F2009. This
brings our total increase in production over the last three quarters to
approximately 15 per cent.
Particularly pleasing has been the improvements at Beatrix and Tarkwa which
increased production by 29 and 8 per cent respectively. Both of these mines
have now largely resolved the issues that affected production in previous
quarters, and Tarkwa should increase production further in the September
quarter. Cerro Corona also had a particularly strong quarter on the back of
improved production and a stronger copper price, increasing production on an
equivalent ounce basis by approximately 37 per cent.
As a consequence of the stronger rand, our operating margin decreased from 47
per cent to 43 per cent. However, we continued to generate positive free cash
flow on the back of increased production and good cost management.
We have decided to write down the investment in Rusoro to its market value at
year end notwith- standing our view that its inherent value is significantly
greater than its current market value. This is the main contributing factor
towards the net loss during the quarter.
During F2010 we will remain focused on improving our safety performance;
increasing our focus on our people; and continue the increasing production
trend."
Stock data
Number of shares in issue
- at end June 2009 704,749,849
- average for the quarter 704,571,069
Free Float 100%
ADR Ratio 1:1
Bloomberg / Reuters GFISJ / GFLJ.J
JSE Limited - (GFI)
Range - Quarter ZAR88.35 - ZAR111.90
Average Volume - Quarter 2,892,541 shares/day
NYSE - (GFI)
Range - Quarter US$10.09 - US$13.72
Average Volume - Quarter 5,725,149 shares / day
Salient features
SOUTH AFRICAN RAND
Year ended Quarter
June June June March June
2008 2009 2008 2009 2009
113,154 106,186 26,896 27,105 28,171 kg Gold produced*
111,315 149,398 125,359 150,301 140,916 R/kg Total cash cost
186,088 221,153 217,065 213,403 203,042 R/kg Notional cash
expenditure
49,615 52,907 12,259 13,278 13,581 000 Tons milled
190,623 253,459 223,568 289,095 253,162 R/kg Revenue
280 337 306 344 331 R/ton Operating costs
9,041 11,463 2,721 3,986 3,338 Rm Operating profit
39 39 42 47 43 % Operating margin
4,458 1,536 843 1,307 (293) Rm Net (loss)/earnings
683 229 129 195 (46) SA
c.p.s.
2,992 2,890 881 1,512 855 Rm Headline earnings
459 431 135 225 126 SA
c.p.s.
2,939 2,981 943 1,369 949 Rm Net earnings
excluding gains and
losses on foreign
exchange,
financial
instruments,
exceptional
450 445 144 204 140 SA items and share of
c.p.s. profit/(loss)
of associates after
taxation
UNITED STATES DOLLARS
Quarter Year ended
June March June June June
2009 2009 2008 2009 2008
Gold produced* oz 906 871 865 3,414 3,638
(000)
Total cash cost $/oz 512 471 502 516 476
Notional cash $/oz 738 668 869 763 796
expenditure
Tons milled 000 13,581 13,278 12,259 52,907 49,615
Revenue $/oz 920 906 895 875 816
Operating costs $/ton 39 35 39 37 38
Operating profit $m 385 416 355 1,272 1,244
Operating margin % 43 47 42 39 39
Net $m (29) 140 105 171 613
(loss)/earnings
US (5) 21 16 25 94
c.p.s.
Headline earnings $m 98 163 111 321 412
US 15 24 17 48 63
c.p.s.
Net earnings $m 109 146 123 331 404
excluding gains
and
losses on foreign
exchange,
financial
instruments,
exceptional
items and share of US 16 21 19 49 62
profit/(loss) c.p.s.
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
and/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 8 fatal accidents for the quarter at the
South African operations. The fatal injury frequency rate regressed from 0.11
to 0.20 during the quarter. An improvement in the lost day injury frequency
rate of 4.78 to 3.48 was achieved and the serious injury frequency rate
reduced
from 2.65 to 2.04.
The total number of fatalities decreased from 47 in financial 2008 to 21 in
financial 2009, an improvement of 55 per cent year on year.
Financial 2009 has been the best safety year in the history of Gold Fields.
The fatal injury frequency rate has improved from 0.29 in financial 2008 to
0.13 in financial 2009, the lost day injury frequency rate has improved from
7.57 to 4.35 and the serious injury frequency rate has improved from 4.03 to
2.52.
To maintain the gains achieved in the safety performance on the operations, an
initiative entitled "Safe production management" is in the process of being
rolled out to address safety systems, leadership behavior and communication at
the South African operations. The Gold Fields Group remains committed to
eliminate fatalities, serious and lost day injuries and no disabling health
incidents.
Financial review
Quarter ended 30 June 2009 compared with
quarter ended 31 March 2009
Revenue
Attributable gold production for the June 2009 quarter amounted to 906,000
ounces compared with 871,000 ounces in the March quarter, an increase of 4 per
cent. At the South African operations, production increased by 2 per cent from
517,000 ounces to 529,000 ounces. Attributable gold production at the
international operations increased by 6 per cent from 354,000 ounces to
377,000
ounces.
At the South African operations gold production in the June quarter at Beatrix
increased by 29 per cent due to improved mining volumes and improved quality
factors. At South Deep gold production increased by 8 per cent due to
increased
tonnage and grade. Gold production at Kloof decreased by 7 per cent compared
with the March quarter largely due to safety related stoppages. At Driefontein
gold production decreased marginally.
At the international operations managed gold production at Tarkwa increased by
8 per cent as a result of the new CIL plant moving towards delivering
consistent nameplate production. At Damang, gold production increased by 2 per
cent due to an improvement in yield. Agnew`s gold production decreased by 9
per
cent as anticipated due to lower volumes processed and the planned 12 day
plant
shutdown. Cerro Corona produced 83,900 equivalent ounces and sold 86,900
equivalent ounces, which is 37 per cent and 33 per cent higher than the
previous quarter respectively.
The average quarterly US dollar gold price achieved increased 2 per cent from
US$906 per ounce in the March quarter to US$920 per ounce in the June quarter.
The average rand/US dollar exchange rate at R8.56 strengthened 14 per cent
compared with the R9.93 achieved in the March quarter. As a result of the
above
factors the rand gold price reduced from R289,095 per kilogram to R253,162 per
kilogram, a 12 per cent decrease. The Australian dollar gold price decreased
from A$1,378 per ounce to A$1,215 per ounce. This was due to the Australian
dollar which strengthened against the United States dollar from 0.66 in the
March quarter to 0.76 in the June quarter partially offset by the increase in
the US dollar gold price.
The decrease in the rand gold price achieved, partially offset by the
increase in production, resulted in revenue decreasing by 9 per cent
from R8,510 million in the March quarter to R7,779 million in the June
quarter. In dollar terms revenue increased by 4 per cent from US$869
million in the March quarter to US$902 million in the June quarter.
Operating costs
Operating costs decreased by 2 per cent despite a 5 per cent increase in
production, from R4,567 million in the March quarter to R4,492 million in the
June quarter due to the effect of translating costs at the international
operations into rand at the stronger exchange rate. In dollar terms costs
increased by 14 per cent from US$457 million in the March quarter to US$523
million in the June quarter. Total cash cost decreased by 6 per cent in rand
terms from R150,301 per kilogram in the March quarter to R140,916 per kilogram
in the June quarter, but increased by 9 per cent in dollar terms from US$471
per ounce in the March quarter to US$512 per ounce in the June quarter.
At the South African operations, operating costs increased by 3 per cent from
R2,434 million (US$243 million) to R2,508 million (US$292 million). This
increase was mainly due to an increase in overtime and additional voluntary
shifts worked to negate the production lost due to the public holidays in the
quarter. Total cash cost at the South African operations increased by 1 per
cent from R143,340 per kilogram (US$449 per ounce) to R145,145 per kilogram
(US$527 per ounce).
At the international operations, including gold-in-process movements,
operating
costs in the June quarter increased by 7 per cent from US$210 million (R2,090
million) in the March quarter to US$225 million (R1,984 million) in the June
quarter. This was mainly due to the increase in production with Cerro Corona
increasing mining and processing volumes and Tarkwa increasing volumes at the
new CIL plant and additional ball mill grinding media consumption. At St Ives,
the increased costs were mainly due to a 20 per cent increase in tons mined,
mainly waste. Total cash cost at the international operations decreased
marginally from US$497 per ounce in the March quarter to US$494 per ounce in
the June quarter.
Notional cash expenditure (NCE)
Notional cash expenditure is defined as operating costs (including general and
admin) plus capital expenditure, which includes brownfields exploration, and
is reported on a per kilogram and per ounce basis - refer to the detailed
table on page 16 of this report. The objective is to provide the all-in costs
for the Group, and for each operation. The NCE per ounce is an important
measure, as it determines how much free cash flow is generated in order to pay
taxation, interest, greenfields exploration and dividends.
The NCE for the Group for the June quarter amounted to R203,042 per kilogram
(US$738 per ounce) compared with R213,403 per kilogram (US$668 per ounce) in
the March quarter.
At the South African operations the NCE increased from R206,570 per kilogram
(US$647 per ounce) in the March quarter to R216,891 per kilogram (US$788 per
ounce) in the June quarter. At the international operations the NCE decreased
quarter on quarter from US$694 per ounce to US$679 per ounce.
Operating margin
The net effect of the changes in revenue and costs, after taking into account
gold-in-process movements, was a 16 per cent decrease in operating profit from
R3,986 million (US$416 million) in the March quarter to R3,338 million (US$385
million) in the June quarter. The Group operating margin was 43 per cent
compared with 47 per cent in the March quarter. The margin at the South
African
operations decreased from 48 per cent to 39 per cent, while the margin at the
international operations increased from 46 per cent to 47 per cent.
Amortisation
Amortisation decreased from R1,141 million (US$115 million) in the March
quarter to R1,067 million (US$124 million) in the June quarter. At the South
African operations amortisation increased from R521 million (US$52 million) to
R573 million (US$66 million) in line with the increased production at Beatrix
and South Deep. At the international operations, amortisation decreased by 23
per cent from US$59 million (R583 million) to US$54 million (R461 million).
This was mainly due to a once-off decrease at Tarkwa due to a reclassification
of assets at the CIL plant and a reduction at St Ives due to lower mining
volumes from Belleisle.
Other
Net interest paid at R171 million (US$20 million) was similar to the March
quarter. In the June quarter interest paid of R246 million (US$29 million) was
partly offset by interest received of R58 million (US$7 million) and interest
capitalised of R17 million (US$2 million). This compares with interest paid of
R260 million (US$26 million) partly offset by interest received of R79 million
(US$8 million) and interest capitalised of R17 million (US$2 million) in the
March quarter.
The share of loss of associates after taxation of R12 million (US$2 million)
in
the June quarter compares with the share of profit of R21 million (US$3
million) in the March quarter. The loss relates to equity accounted losses
incurred at Rand Refinery of R19 million partly offset by equity accounted
gains incurred in Rusoro Mining Limited (Rusoro) of R7 million. The gain In
the
March quarter related to equity accounted gains at Rand Refinery. The loss on
foreign exchange of R76 million (US$8 million) in the June quarter compares
with a gain of R129 million (US$14 million) in the March quarter. The loss in
the June quarter is mainly due to translation of balances on offshore accounts
at a stronger rand exchange rate. The gain in the March quarter related to
exchange gains realised on the repayment of Australian dollar denominated
intercompany loans.
The gain on financial instruments of R71 million (US$8 million) in the June
quarter compares with a loss of R5 million (US$nil million) in the March
quarter. The gain in the June quarter comprises realised gains due to the
close out of the United States dollar/South African rand and United States
dollar/Australian dollar denominated forward sales amounting to R54 million
and R20 million respectively. Refer to page 15 for more detail. The loss in
the March quarter was due to marked to market losses on the balance of the
diesel hedges in Ghana and Australia.
Share based payments amounted to R20 million (US$3 million) in the June
quarter, which was R75 million less than the March quarter due to a
re-evaluation of forfeiture allowances during the quarter, for the year as a
whole.
Other costs increased from R41 million (US$4 million) in the March quarter to
R126 million (US$14 million) in the June quarter, mainly due to restructuring
cost at our training academy, new loan facility charges, and research and
development into mechanised mining.
Exploration
Exploration expenditure increased from R134 million (US$14 million) in the
March quarter to R171 million (US$20 million) in the June quarter due to
increased drilling activity in Peru and Kyrgyzstan on advanced exploration
projects. Refer to the Exploration and Corporate Development section for more
detail.
Exceptional items
The exceptional loss in the June quarter amounted to R1,252 million (US$139
million) which was mainly due to the impairment of certain listed investments
of R1,210 million (US$134 million) and voluntary severance packages paid at
the South African operations of R103 million (US$12 million), partly offset by
a profit on the sale of IAMGold shares of R65 million (US$8 million). The
impairment charge is made up of R1.1 billion (US$118 million) for Rusoro in
terms of the applicable accounting standard and a write down of sundry
offshore exploration investments of R0.1 billion (US$16 million). However,
management`s view of this investment is that its inherent value is
significantly greater than its current market value. The loss of R203 million
(US$23 million) in the March quarter was mainly due to a loss Gold Fields made
when it exchanged its Orezone shares for IAMGold shares. This resulted from
the conclusion of an offer by IAMGold to all the shareholders of Orezone to
exchange their shares in Orezone for shares in IAMGold.
Taxation
Taxation for the quarter amounted to R657 million (US$76 million) compared
with
R943 million (US$99 million) in the March quarter, in line with the decrease
in
operating profit. The tax expense includes normal and deferred taxation at all
operations, together with government royalties at the international
operations.
Earnings
Net loss attribut able to ordinary shareholders amounted to R293 million
(US$29
million) or 46 SA cents per share (US$0.05 per share), compared with R1,307
million earnings (US$140 million) or 195 SA cents per share (US$0.21 per
share)
in the March quarter.
Headline earnings i.e. earnings less the after tax effect of asset sales,
impairments, the sale of investments and discontinued operations,
amounted to R855 million (US$99 million) or 126 SA cents per share (US$0.15
per
share), compared with earnings of R1,512 million (US$163 million) or 225 SA
cents per share (US$0.24 per share) in the March 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 R949 million (US$109 million) or
140 SA cents per share (US$0.16 per share), compared with earnings
of R1,369 million (US$146 million) or 204 SA cents per share (US$0.21
per share) reported in the March quarter.
Cash flow
Cash inflow from operating activities for the quarter amounted to R2,282
million (US$265 million), compared with R2,947 million (US$328 million) in the
March quarter. This quarter on quarter decrease of R665 million (US$63
million)
was due to the decrease in profit before tax and exceptional items of R780
million (US$69 million).
Capital expenditure increased from R1,701 million (US$166 million) in the
March
quarter to R1,791 million (US$209 million) in the June quarter.
At the South African operations capital expenditure increased from R889
million
(US$91 million) in the March quarter to R1,059 million (US$122 million) in the
June quarter. This increase was split more or less evenly between Driefontein,
Beatrix and South Deep, mostly on cyanide code compliance, increased
development and the build up at South Deep. Expenditure on Ore Reserve
Development (ORD) at Driefontein, Kloof and Beatrix accounted for R134 million
(US$16 million), R149 million (US$17 million) and R87 million (US$10 million)
respectively compared with expenditure at Driefontein of R119 million (US$12
million), Kloof of R120 million (US$12 million), and Beatrix of R72 million
(US$7 million) in the March quarter.
At the international operations capital expenditure increased in dollar terms
from US$76 million to US$80 million, but decreased in rand terms from R800
million to R669 million due to the stronger rand. In Australia, at St Ives,
capital expenditure increased by A$3 million due to extending the decline at
Belleisle into Naiad and ore definition drilling at the Athena underground
mine. At Damang, capital expenditure increased due to expenditure on the
primary crusher. This was partially offset by decreased capital expenditure
(US$4 million) at Tarkwa. Proceeds on the sale of investments reflects the
sale
of IAMGold shares of R282 million (US$33 million) compared with R200 million
(US$22 million) in the March quarter for the redemption of preference shares
in
a funding vehicle created as part of the Mvela transaction.
Net cash outflow from financing activities in the June quarter amounted to
R274
million (US$52 million). Loans received in the June quarter amounted to R1.1
billion (US$134 million), mainly due to the issue of commercial paper to
refinance some of the South African loans. The commercial paper market has
more
favourable interest rates compared with normal financing facilities. Loans
repaid amounted to R1.4 billion (US$182 million), mainly made up of a partial
repayment of the split- tenor revolving facility as well as repayment of a
portion of the South African loans.
Net cash inflow for the quarter at R430 million (US$28 million) compares to a
net cash inflow of R1,396 million (US$180 million) in the March quarter. After
accounting for a negative translation adjustment of R163 million (US$54
million
positive), the cash balance at the end of June was R2,804 million (US$348
million). The cash balance at the end of March was R2,537 million (US$265
million) a net increase of R267 million (US$83 million) for the quarter.
Balance sheet (Investments and net debt)
Investments decreased from R5,704 million (US$713 million) at 30 June 2008 to
R2,971 million (US$369 million) at 30 June 2009. This decrease was mainly due
to an impairment of R1,066 million (US$118 million) of the investment in
Rusoro
which has been accounted for in the income statement, and a dilution loss
realised on the Group`s holding in Rusoro, consequent upon a private placement
by that company which has been accounted for in equity.
Net debt (long-term loans plus current portion of long-term loans less cash
and
deposits) decreased from R7,748 million (US$810 million) in the March quarter
to R6,092 million (US$756 million) in the June quarter.
Detailed and operational review
South African operations
Cost and revenue optimisation initiatives
During financial 2008, the South African operations reviewed the suite of
projects under Project 500 and identified the following for implementation
over
the next two to three years.
Project 1M
Project 1M is a productivity initiative that aims to improve quality mining
volumes by increasing the face advance by an additional one metre per month to
an average of at least eight metres per month by the end of financial 2010.
This should be achieved through the following key improvement initiatives:
drilling and blasting practices;
cleaning and sweeping practices;
mining cycle and training; and
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 mechanizing 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. The
project targeted a mechanisation rate of 43 per cent of flat-end development
by
the end of financial 2009, reaching 100 per cent by 30 June 2010. Unit cost,
equipment efficiency and labour productivity are improving as teams are
gaining
more 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, target savings of R130 million per annum at
current tariff levels by the end of financial 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 without compromising any production opportunities; R70 million in
financial 2009 and R60 million in financial 2010. These savings are against
the
baseline consumption for the financial 2008 and driven by various initiatives.
Savings of R63 million were achieved in financial 2009. The average power
consumed for the quarter was 535.2 Megawatts, compared with an Eskom base line
of 602.3 Megawatts. The average diesel consumption for the quarter was 5 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 14 per cent. A target of 2 per cent in
each
of financial 2009 and 2010 was set. A 2 per cent reduction was achieved in
financial 2009 mainly 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 - savings for the quarter were R15 million (F2009:
R43 million). These savings were realised by optimization 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 2010.
Hospital services - savings for the quarter were R12 million (F2009:
R15 million). These savings were realised by optimization of processes.
On the supply chain side the impact of the global economic crisis curtailed
the
rampant inflation recently experienced on various input commodities, with
decreases in amongst others copper, steel, fuel and explosives.
During the June quarter approximately R15 million savings were
achieved in contract price reductions from strategic sourcing and
repairs and maintenance. This was mainly due to the continued
slowdown in demand and market price reduction in commodities such
as steel, chemicals and explosives. The strengthening of the rand to
the US dollar also resulted in savings on imported consumables such
as grinding balls. Cumulative savings for the year amounted to R70
million.
Indications are that prices have bottomed out. A gradual upturn in
pricing from the new baseline is expected during the next quarter, with
input cost inflation filtering through in areas such as steel, fuel, copper,
power and labour.
Project 4M
Project 4M initiative focuses on the Mine Health and Safety Council
(MHSC) milestones agreed to on 15 June 2003 by a tripartite health
and safety summit comprising representatives from Government,
organized Labour Unions and Associations, and mining companies.
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.
In order to meet the Noise Induced Hearing Loss (NIHL) target the company is
focusing on the noise at source. A target was set that no machine or piece of
equipment may generate a noise level in excess of 110 dB (A) after December
2013. A number of action plans have been put in place to meet this target
based
on the highest potential exposure source. Progress is monitored quarterly.
Project5M
Uranium Project
This project is focused on exploring the economic potential of re- processing
Gold Fields` Witswatersrand South African tailings storage facilities ("TSF")
to recover uranium, gold and sulphur.
Surface drilling of the historical tailings resources was concluded in early
March 2009 and evaluation activities completed in the middle of April 2009.
From the data generated during the drilling programme, a detailed resource and
reclamation model was developed for the 13 historical TSFs. The total surface
resource accounts for 499 million tons at 1.4 ton per cubic metre density. The
in-situ uranium (U3O8) and gold content amounts to 53.0 million pounds of
uranium and 4.5 million ounces of gold respectively. Gold grades and uranium
grades have average values of 0.3 grams per ton gold and 48 parts per million
uranium for the total resource. Sulphur grades have an average resource grade
of 0.50 per cent.
The metallurgical pre-feasibility study for the Driefontein Treatment
Operation
(DTO) and the Historical Treatment Operation (HTO) has been completed. Process
requirements for the project include three primary concentrator facilities at
three different locations (Driefontein 1 plant, South Deep and Driefontein
central treatment plant) and a central downstream plant likely to be located
at
Driefontein 7 shaft to treat the respective concentrates. This process will
also provide for the production of sulphuric acid in a pyritic sulphur burning
roaster producing 1,200 tons of acid per day.
The concentrator plants will treat a total of 2.1 million tons per month.
The monthly production profile will be made up from tailings material
generated
from current horizons treated through the Driefontein, Kloof and South Deep
metallurgical plants supplemented with 1.35 million tons of historical
material
reclaimed from the current and historical TSF`s. The respective concentrate
streams will be treated for uranium and gold extraction in a typical reverse
leach configuration at a rate of 410,000 tons per month at the proposed 7
shaft
plant.
The feasibility study for the project has commenced. The services from six
engineering companies have been contracted to conduct the engineering and
costing to feasibility estimate level and the majority of the feasibility
study
activities are expected to be completed by December 2009. The feasibility
study
will be completed at an estimated cost of R108 million. This will assist in
determining operating costs and capital expenditure requirements for the
project.
International operations
Integrated continuous improvement initiatives and
strategic sourcing / contract benefits achieved
Continued cost savings from contracted rise-and-fall mechanisms and efficiency
optimization benefits were achieved across multiple initiatives during the
June
quarter. Consolidated total cost benefits of around US$12 million were
achieved
for the International operations for the quarter. Cumulative total cost
benefits for the year are approximately US$38 million.
Australia
During the June quarter cost benefits of around A$5 million were realised
through improvement initiatives in underground and surface mining contracts,
surface drilling and ground support rate reductions and rebates on cement.
Ghana
Savings of around US$5 million were achieved during the June quarter, mainly
due to lower power tariffs and rise-and-fall reductions in explosives.
Peru
Contracted cost savings of US$2 were achieved during the June quarter in
various areas such as integrated supply chain, logistics and concentrate
distribution.
South African operations
Driefontein
June March
2009 2009
Gold produced - kg 6,630 6,693
- 000`ozs 213.2 215.2
Yield - underground - g/t 7.6 7.1
- combined - g/t 4.3 4.4
Total cash cost - R/kg 129,397 122,680
- US$/oz 470 384
Notional cash expenditure - R/kg 183,529 168,729
- US$/oz 667 529
Gold production decreased marginally from 6,693 kilograms (215,200
ounces) in the March quarter to 6,630 kilograms (213,200 ounces) in
the June quarter due to a decrease in underground volumes.
Underground tonnage decreased from 868,000 tons in the March
quarter to 794,000 tons in the June quarter mainly due to additional
public holidays in the June quarter. Surface tonnage increased from
669,000 tons to 742,000 tons partially offsetting the effect of the public
holidays. Underground yield increased from 7.1 grams per ton to 7.6
grams per ton for the quarter as in the March quarter 105,000 lower
grade underground tons from the stockpile accumulated for the
Christmas break were milled. Surface yield remained constant at 0.8
grams per ton in the June quarter.
Main development increased by 13 per cent for the quarter and on-reef
development increased by 28 per cent, mainly as a result of the build-
up post the completion of the backlog secondary support programme.
The average development value increased from 791 centimetre grams
per ton in the March quarter to 1,109 centimetre grams per ton in the
June quarter, primarily due to improved values at 1 shaft and 4 shaft.
Operating costs increased from R868 million (US$86 million) to R905
million (US$105 million). The increase in operating cost is mainly
attributable to an increase in electricity supply cost due to winter tariffs.
Total cash cost increased 5 per cent in rand terms from R122,680 per
kilogram to R129,397 per kilogram and increased 22 per cent in US
dollar terms, from US$384 per ounce to US$470 per ounce.
Operating profit decreased 29 per cent from R1,080 million (US$112
million) in the March quarter to R764 million (US$89 million) in the June
quarter mainly due to the 14 per cent lower Rand gold price received.
Capital expenditure increased from R262 million (US$26 million) to
R311 million (US$36 million). The increase was mainly due to
increased expenditure on housing upgrades and capitalised ore reserve
development.
Notional cash expenditure increased from R168,729 per kilogram
(US$529 per ounce) to R183,529 per kilogram (US$667 per ounce) due
to the increase in operating cost and capital expenditure.
The forecast for the September quarter`s gold production is lower due to
safety stoppages at the beginning of the quarter. Total cash cost is expected
to increase due to the lower production, the annual wage increase and the
electricity price increase and two months of higher winter tariffs. The
increased capital expenditure is due to the uranium feasibility study, which
is expected to cost approximately R100 million over the next six months,
development on the extraction of the 4 shaft pillar and increased ore reserve
development in line with the philosophy of increasing flexibility by opening
up the ore body.
The estimate for the September quarter is as follows:
Gold produced - 6,300 kilograms (202,500 ounces)
Total cash costs* - R146,600 per kilogram (US$570 per ounce)
Capital expenditure* - R340 million (US$43 million)
Notional cash expenditure* - R207,500 per kilogram (US$810 per
ounce)
* Based on an exchange rate of US$1 = R8.00.
Total cash cost is expected to increase due to the annual wage increase and
the
electricity price increase and two months of higher winter tariffs. The
increased capital expenditure is due to the uranium feasibility study, which
is
expected to cost approximately R100 million over the next six months,
development on the extraction of the 4 shaft pillar and increased ore reserve
development in line with the philosophy of increasing flexibility by opening
up
the ore body.
Kloof
June March
2009 2009
Gold produced - kg 5,004 5,406
- 000`ozs 160.9 173.8
Yield - underground - g/t 7.4 9.8
- combined - g/t 5.6 7.8
Total cash cost - R/kg 145,284 133,796
- US$/oz 528 419
Notional cash expenditure - R/kg 201,459 182,612
- US$/oz 732 572
Gold production decreased by 7 per cent from 5,406 kilograms (173,800 ounces)
in the March quarter to 5,004 kilograms (160,900 ounces) in the June quarter.
This decrease was largely due to work stoppages as a result of the three
fatalities and seismicity during the quarter. The implementation of new stope
support standards had a negative effect on the mine`s performance for the
quarter. Although there was an increase in underground tonnage from 543,000 to
638,000, this was offset by a decrease in yield from 9.8 grams per ton to 7.4
grams per ton. The high yield in the March quarter was due to clean-ups of
high
grade underground historic accumulations in the March quarter. The yield
achieved in the June quarter is more representative of that expected going
forward.
Total main development increased by 28 per cent for the quarter and on-reef
development increased by 29 per cent. This improvement in performance was
attributed to additional crews deployed from the backlog secondary support to
the development sections as secondary support backlog is caught up, as well as
the further easing of constraints imposed by the Main shaft repairs. The
average development value increased by 14 per cent to 1,932 centimetre grams
per ton in the June quarter due to a higher VCR sampled at 2 sub vertical
shaft.
Operating costs were similar to last quarter at R763 million, but increased in
dollar terms from US$76 million in the March quarter to US$89 million in the
June quarter. The lower gold output resulted in a 9 per cent increase in total
cash cost from R133,796 per kilogram to R145,284 per kilogram.
Operating profit decreased from R794 million (US$83 million) in the March
quarter to R489 million (US$57 million) in the June quarter due to the
decrease
in gold production and the lower gold price.
Capital expenditure at R245 million (US$29 million) increased by 9 per cent
compared with the previous quarter`s expenditure of R224 million (US$22
million). This increase was mainly due to an increase in ore reserve
development.
Notional cash expenditure increased by 10 per cent from R182,612 per
kilogram to R201,459 per kilogram due to the lower gold production and
higher capital expenditure.
Gold production is estimated to increase by 4 per cent only in the September
quarter due to safety stoppages at the beginning of the quarter and a fire
between Main shaft and 4 shaft, and seismicity. Total cash cost per ounce
should increase in the September quarter as a result of higher electricity
tariffs and the annual increases. Capital expenditure is planned to increase
to around R270 million (US$34 million) mainly due to the increase in ore
reserve development (ORD) and commencement of new projects, including the 69
line decline.
The estimate for the September quarter is as follows:
Gold produced - 5,200 kilograms (167,200 ounces)
Total cash cost* - R154,800 per kilogram (US$605 per ounce)
Capital expenditure* - R270 million (US$34 million)
Notional cash expenditure* - R214,000 per kilogram (US$835 per ounce)
* Based on an exchange rate of US$1 = R8.00.
Beatrix
June March
2009 2009
Gold produced - kg 3,199 2,489
- 000`ozs 102.9 80.0
Yield - g/t 4.1 4.0
Total cash cost - R/kg 157,862 193,532
- US$/oz 574 606
Notional cash expenditure - R/kg 224,726 259,622
- US$/oz 817 813
Gold production at Beatrix increased by 28 per cent from 2,489 kilograms
(80,000 ounces) in the March quarter to 3,199 kilograms (102,900 ounces) in
the
June quarter. This is due to improved mining volumes and quality factors,
resulting in an increase in tons milled from 629,000 tons to 774,000 tons. The
yield increased from 4.0 grams per ton in the March quarter to 4.1 grams per
ton for the June quarter, mainly as a result of a decrease in stope width and
higher values mined.
Total main development increased by 11 per cent for the quarter from 7,251
metres to 8,065 metres. The main on-reef development decreased from 1,765
metres to 1,476 metres and main off-reef metres increased from 5,485 metres to
6,590 metres. The average value of the main on-reef development increased from
819 centimetre grams per ton for the March quarter to 1,131 centimetre grams
per ton for the June quarter.
Operating costs increased by 4 per cent from R508 million (US$51 million) in
the March quarter to R528 million (US$61 million) in the June quarter. The
increase in costs was mainly due to additional overtime worked, incentives
paid
to employees for improved production, as well as an increase in electricity
costs. Total cash cost decreased by 18 per cent from R193,532 per kilogram in
the March quarter to R157,862 per kilogram in the June quarter.
Operating profit increased by 24 per cent from R213 million (US$21 million) in
the March quarter to R272 million (US$32 million) in the June quarter mainly
due to the increased production, partially offset by the lower rand gold price
received.
Capital expenditure increased from R139 million (US$14 million) in the March
quarter to R191 million (US$22 million) in the June quarter mainly due to the
procurement of additional mechanised equipment for flat end development and
increased ore reserve development.
Notional cash expenditure decreased from R259,622 per kilogram (US$813 per
ounce) to R224,726 per kilogram (US$817 per ounce) mainly due to the increased
production.
Gold production is expected to be steady in the September quarter. Costs in
the September quarter will be affected by annual wage increases and the
increase in electricity tariffs.
The estimate for the September quarter is as follows:
Gold produced - 3,200 kilograms (102,900 ounces)
Total cash cost* - R174,000 per kilogram (US$680 per ounce)
Capital expenditure* - R155 million (US$19 million)
Notional cash expenditure* - R230,600 per kilogram (US$900 per ounce)
* Based on an exchange rate of US$1 = R8.00.
Gold production is expected to be steady in the September quarter.
Costs in the September quarter will be affected by annual wage increases and
the increase in electricity tariffs.
International operations
Ghana
Tarkwa
June March
2009 2009
Gold produced - 000`ozs 164.7 152.2
Yield - heap leach - g/t 0.7 0.8
- CIL plant - g/t 1.3 1.3
- combined - g/t 1.0 0.9
Total cash cost - US$/oz 481 503
Notional cash expenditure - US$/oz 684 778
Gold production increased by 8 percent from 152,200 ounces in the
March quarter to 164,700 ounces in the June quarter. The increase in
gold production was driven primarily by the increase in CIL throughput.
Total tons mined, including capital stripping, decreased from 35.7
million tons to 31.6 million tons, due to reduced capital stripping. Ore
mined increased from 5.2 million tons in the March quarter to 5.3 million
tons in the June quarter and resulted in a build-up of run of mine
stockpiles. The head grade of total ore mined was 1.13 grams per ton,
the same as last quarter`s head grade. The strip ratio achieved was
5.01 against the March quarter`s 5.91.
Total feed to the North Heap Leach decreased from 2.84 million tons
for the March quarter to 2.53 million tons in the June quarter as
110,000 tons of North Heap Leach course fraction feed was diverted to
the CIL plant due to the unavailability of the CIL crusher. North Heap
Leach yield for the quarter decreased to 0.7 grams per ton compared
with last quarter`s 0.8 grams per ton. The Heap Leach facilities
produced 57,500 ounces, 20 per cent lower than the 71,800 ounces
produced in the March quarter. The decline in ounces can be attributed to
a slower release of GIP at South Heap Leach, lower tons crushed at
the North Heap Leach plant due to the diversion of feed to the CIL plant
as highlighted above. This was partially offset by
an increase in recoveries and a reduction in GIP at the North Heap
Leach.
The total feed to the CIL plant was 2.63 million tons compared with 2.37
million tons in the March quarter. CIL yield was 1.3 grams per ton, the same
as
last quarter. The CIL plant produced 107,200 ounces in the June quarter
compared with 80,400 ounces in the March quarter.
Operating costs, including GIP movements, were US$4 million higher
than the March quarter at US$80 million. Operating costs increased in
line with the increased tons milled at the expanded plant which required
additional ball mill grinding media to facilitate a step change in the ball
mill power draw.
Operating profit at US$72 million (R623 million) in the June quarter
compares with US$61 million (R594 million) in the March quarter.
Capital expenditure decreased from US$34 million (R364 million) to US$31
million (R251 million) for the quarter, with sustaining capital expenditure on
the CIL plant (US$9 million) and pre-stripping at the being the major items
for
the Teberebie cutback (US$12 million) quarter.
Notional cash expenditure for the quarter was US$684 per ounce, compared with
the previous quarter`s US$778 per ounce, reflecting the increased gold
production and lower capital expenditure.
The estimated increase in gold production is due to increased production from
the CIL plant expansion.
The estimate for the September quarter is as follows:
Gold produced - 175,000 ounces
Total cash cost - US$480 per ounce
Capital expenditure - US$40 million
Notional cash expenditure - US$745 per ounce.
* Based on an exchange rate of US$1 = R8.00.
The estimated increase in gold production is due to increased production from
the CIL plant expansion.
Damang
June March
2009 2009
Gold produced - 000`ozs 53.4 52.5
Yield - g/t 1.3 1.2
Total cash cost - US$/oz 611 643
Notional cash expenditure - US$/oz 696 669
Gold production increased by 2 per cent from 52,500 ounces in the March
quarter
to 53,400 ounces in the June quarter. This increase was due to a 3 per cent
improvement in yield.
Total tons mined, including capital stripping decreased by 21 per cent from
4.8
million tons in March quarter to 3.8 million tons in June quarter. Ore mined
increased from 1.05 million tons to 1.11 million tons and the overall strip
ratio decreased from 3.59 to 2.38 mainly due to the Damang pit cutback mining
schedule.
Operating costs, including gold-in-process movements were unchanged 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 and increased mill
consumable costs. Total cash cost decreased from US$643 per ounce to US$611
per
ounce reflecting the decreased mining activities and higher yield.
Operating profit for the June quarter amounted to US$17 million (R150
million) compared with US$16 million (R152 million) achieved in the
March quarter.
Capital expenditure increased from US$4 million (R37 million) to US$6
million (R51 million) for the quarter, with the majority of the expenditure
on the primary crusher, exploration and implementation of SAP for all
commercial systems on the mine.
Notional cash expenditure for the quarter was higher at US$696 per
ounce compared with the previous quarter`s US$669 per ounce mainly
as a result of the higher capital expenditure.
Gold production for the September quarter is expected to be marginally lower
than the June quarter due to a planned mechanical plant shut down. Capital
expenditure is expected to be higher due to planned exploration in line with
the strategy to extend the life of mine.
The estimate for the September quarter is as follows:
Gold produced - 53,000 ounces
Total cash costs - US$620 per ounce
Capital expenditure - US$8 million
Notional cash expenditure - US$760 per ounce.
* Based on an exchange rate of US$1 = R8.00.
Gold production for the September quarter is expected to be marginally lower
than the June quarter due to a planned mechanical plant shut down. Capital
expenditure is expected to be higher due to planned exploration in line with
the strategy to extend the life of mine.
Peru
Cerro Corona
June March
2009 2009
Gold produced - 000`oz 40.5 31.8
Copper produced - tons 9,300 8,000
Total equivalent gold produced - 000` eq oz 83.9 61.4
Total equivalent gold sold - 000` eq oz 86.9 65.3
Yield - gold - g/t 0.8 0.7
- copper -% 0.66 0.58
- combined - g/t 1.8 1.3
Total cash cost - US$/ eq oz 337 422
Notional cash expenditure - US$/ eq oz 584 762
Gold price* - US$/ oz 986 906
Copper price* - US$/ t 4,581 3,357
* Used to calculate total equivalent gold produced
Gold produced increased by 18 per cent from 31,800 ounces in the March quarter
to 40,500 ounces in the June quarter. Copper produced increased by 16 per cent
from 8,000 tons produced in the March quarter to 9,300 tons produced in the
June quarter. During the June quarter concentrate with payable content of
39,600 ounces of gold was sold at an average gold price of US$913 per ounce
and
9,500 tons of copper were sold at an average copper price of US$3,910 per ton,
net of treatment and refining charges.
Total tons mined increased as planned from 2.52 million tons in the March
quarter to 3.78 million tons during the June quarter. Ore mined at 1.55
million
tons was in line with that produced in the March quarter of 1.57 million tons.
The increase in the strip ratio for the June quarter at 1.43, compared with
the
March quarter`s strip ratio of 0.61, was due to more waste tons being mined as
part of a catch-up of the life to mine strip ratio, forecast at 0.7.
Ore processed increased from 1.43 million tons in the March quarter to
1.47 million tons in the June quarter, with concentrate production at 43,500
dry tons in the June quarter compared with 36,000 dry tons in the March
quarter. Gold yield for the quarter was 0.8 grams per ton and copper yield was
0.66 per cent compared with 0.70 grams per ton and 0.58 per cent respectively
in the March quarter. Copper produced was higher mainly due to an increase in
recoveries to 81 per cent due to improved supergene, hypogene and mixed ore
blending.
Operating costs including gold-in-process movements decreased from US$31
million (R289 million) in the March quarter to US$29 million (R251 million) in
the June quarter and total cash cost was US$337 per equivalent ounce sold
compared with US$422 per equivalent ounce sold in the March quarter.
Operating profit at US$53 million (R467 million) compared with US$32
million (R297 million) in the March quarter, reflecting the impact of higher
production and metal prices, together with lower operating costs.
Capital expenditure increased marginally from US$19 million (R207
million) in the March quarter to US$20 million (R163 million) in the June
quarter. During the current quarter US$15 million was spent on construction of
the Las Aguilas Tailings Management Facility (TMF).
Notional cash expenditure for the June quarter at US$584 per equivalent ounce
was lower than the previous quarter`s US$762 per equivalent ounce due to the
increase in equivalent ounces produced.
The estimate for the September 2009 quarter is as follows:
Metals (gold and copper) produced - 80,000 equivalent ounces*
Gold produced - 31,400 ounces
Copper produced - 8,500 tons
Total cash cost* - US$390 per equivalent ounce
Capital expenditure - US$26 million
Notional cash expenditure* - US$710 per equivalent ounce
* Equivalent ounces are based on a gold price of US$900 per ounce and copper
price of US$4,800 per ton.
Australia
St Ives
June March
2009 2009
Gold produced - 000`ozs 108.9 109.5
Yield - heap leach - g/t 0.5 0.5
- milling - g/t 2.5 2.7
- combined - g/t 1.9 1.9
Total cash cost - A$/oz 814 811
- US$/oz 614 538
Notional cash expenditure - A$/oz 1,021 978
- US$/oz 770 649
Gold production decreased marginally from 109,500 ounces in the March quarter
to 108,900 ounces in the June quarter.
Gold produced from the Lefroy mill decreased marginally from 100,100 ounces in
the March quarter to 99,500 ounces in the June quarter due to a decline in
head
grade to the mill, partially offset by a drawdown of gold in circuit.
Production from the heap leach was constant at 9,400 ounces.
At the open pit operations 1.7 million tons of ore were mined for the June
quarter compared with 1.4 million tons of ore mined in the March quarter.
Grade
decreased from 1.7 grams per ton to 1.5 grams per ton.
The decrease in grade was due to additional lower grade ore mined from the
Agamemnon and Leviathan pits. The average strip ratio including capital waste
was 3.2 in the June quarter, compared with 4.0 in the March quarter.
At the underground operations 326,000 tons of ore were mined at 4.9 grams per
ton in the June quarter, compared with 322,000 tons of ore mined at 5.2 grams
per ton in the March quarter. Increased production from the Argo and Cave
Rocks
mines compensated for reduced production from Belleisle during the quarter.
Operating costs, including gold-in-process movements, increased from A$84
million (R556 million) in the March quarter to A$88 million (R569 million) in
the June quarter. The increase in costs was primarily due to an increase in
mining volumes and a decrease in the GIP credit due to the drawdown of gold in
circuit.
Operating profit decreased from A$66 million (R442 million) to A$43 million
(R278 million) due to decreased gold revenue of A$19 million (R151 million)
due
to the lower Australian gold price and the increases in operating cost. Total
cash cost increased marginally to A$814 for the quarter.
Capital expenditure increased from A$18 million (R115 million) in the March
quarter to A$21 million (R131 million) in the June quarter. This was primarily
due to costs incurred in extending the decline at Belleisle into Naiad, a new
deposit, underground ore definition drilling at Athena and pre-stripping at
the
Agamemnon pit.
Notional cash expenditure increased from A$978 per ounce (US$649 per ounce) in
the March quarter to A$1,021 per ounce (US$770 per ounce) in the June quarter
due to the increase in operating costs and the additional capital costs
incurred.
The forecast increase in capital expenditure is due to expenditure on a box-
cut to access the new Athena underground mine, a power upgrade required for
extending the Belleisle underground mine, pre-stripping of the Apollo pit and
a cutback to the Agamemnon pit, annual tailings dam raise construction and
accelerating exploration of the Athena complex.
The forecast for the September quarter is as follows:
Gold produced - 110,000 ounces
Total cash cost* - A$820 per ounce (US$660 per ounce)
Capital expenditure* - A$31 million (US$25 million)
Notional cash expenditure* - A$1,085 per ounce (US$870 per ounce)
* Based on A$1=US$0.80.
Agnew
June March
2009 2009
Gold produced - 000`ozs 45.2 49.5
Yield - g/t 6.2 5.6
Total cash cost - A$/oz 531 535
- US$/oz 401 355
Notional cash expenditure - A$/oz 797 725
- US$/oz 601 481
Gold production decreased 9 per cent from 49,500 ounces in the March quarter
to 45,200 ounces in the June quarter, as expected. The decreased production
reflects the scheduled twelve day maintenance shut down at the plant, enabling
a number of projects to be completed. This included re-machining the teeth of
the girth gear on ball mill two and sending the trunion housing from ball mill
one for refurbishment. During this time further works were done on the
cyanide code compliance, including a new concrete trash screen bunker and pipe
racks. As a result of this maintenance programme tons processed decreased
from 277,000 tons in the March quarter to 228,000 tons in the June quarter,
partially offset by an increase in yield from 5.6 grams per ton in the March
quarter to 6.2 grams per ton in the June quarter because of an increase in
higher grade Kim Lode ore processed.
Ore mined from underground increased by 4 per cent from 193,000 tons
in the March quarter at a head grade of 7.7 grams per ton to 201,000 tons in
the June quarter at a head grade of 7.8 grams per ton. The increase was due to
improved equipment availability and increased production from Main Lode.
Decline and capital development increased from 673 metres in the March quarter
to 962 metres in the June quarter. A decline to link Main Lode to Kim Lode
commenced in the March quarter and is expected to be finished at the end of
the
September quarter. This is expected to considerably improve haulage, logistics
and ventilation going forward, and thereby reduce bottlenecks.
Operating costs, including gold-in-process movements, decreased 8 per cent
from
A$26 million (R171 million) in the March quarter to A$24 million (R154
million)
in the June quarter. The decrease in operating cost was the result of a
build-up of gold-in-process partially offset by increased underground volumes.
Total cash cost per ounce was lower at A$531 per ounce (US$401 per ounce) in
the June quarter compared with A$535 per ounce (US$355 per ounce) in the March
quarter.
Operating profit decreased 24 per cent from A$42 million (R276 million)
in the March quarter to A$32 million (R203 million) in the June quarter
mainly due to decreased production exacerbated by the lower
Australian dollar gold price.
Capital expenditure was consistent with the prior quarter at A$12 million and
included A$5 million on underground development at Kim and Main Lode, A$4
million on exploration and the balance on mainly processing upgrades.
Notional cash expenditure increased from A$725 per ounce (US$481 per ounce) in
the March quarter to A$797 per ounce (US$601 per ounce) in the June quarter.
This increase was mainly due to the lower production.
Total cash cost is expected increase due to catch-up of paste fill during the
quarter. Capital expenditure for the September quarter is expected to
increase to A$17 million (US$14 million). This increase is due to increased
expenditure on exploration, cyanide code compliance and the replacement of the
carbon regeneration kiln.
The estimate for the September quarter is as follows:
Gold produced - 48,000 ounces
Total cash costs* - A$600 per ounce (US$480 per ounce)
Capital expenditure* - A$17 million (US$14 million)
Notional cash expenditure* - A$930 per ounce (US$745 per ounce)
* Based on A$1=US$0.80.
Capital expenditure for the September quarter is expected to increase to A$17
million (US$14 million). This increase is due to increased expenditure on
exploration, cyanide code compliance and the replacement of the carbon
regeneration kiln.
Capital and development projects
South Deep project
June March
2009 2009
Gold produced - kg 1,614 1,500
- 000`ozs 51.9 48.2
Yield - underground - g/t 6.7 5.7
- combined - g/t 3.8 4.4
Total cash cost - R/kg 184,201 186,667
- US$/oz 669 585
Notional cash expenditure - R/kg 386,245 373,733
- US$/oz 1,403 1,171
Gold production at South Deep increased by 8 per cent from 1,500 kilograms
(48,200 ounces) in the March quarter to 1,614 kilograms (51,900 ounces) in the
June quarter. Underground tonnage processed decreased slightly from 317,000
tons in the March quarter to 313,000 tons in the June quarter which included
87,000 waste tons in the June quarter and 62,000 waste tons in the March
quarter. The underground reef yield increased from 5.7 grams per ton in the
March quarter to 6.7 grams per ton in the June quarter. This was mainly due to
an increase in tonnage and grade from the higher grade 95 3 West area. The
combined yield reduced from 4.4 grams per ton in the March quarter to
3.8 grams per ton in the June quarter as a result of the increase of lower
grade surface source tonnage processed from 25,000 tons in the March quarter
to
111,000 tons in the June quarter, arising from surface clean-up.
Development increased by 31 per cent for the June quarter from 1,596 metres to
2,091 metres. The new mine capital development in Phase 1, sub 95 level,
increased by 80 per cent for the June quarter from 646 metres to 1,160 metres.
Development in the current mine areas above 95 level decreased from 947 metres
to 931 metres.
Operating costs, increased by 5 per cent from R296 million (US$30 million) in
the March quarter to R312 million (US$36 million) in the June quarter. This
was
mainly due to the increase in total tons produced, additional support cost,
increased maintenance and increased electricity costs due to winter tariffs.
The total cash cost decreased by 1 per cent from R186,667 per kilogram (US$585
per ounce) in the March quarter to R184,201 per kilogram (US$669 per ounce) in
the June quarter.
An operating profit of R92 million (US$11 million) was realised in the June
quarter compared with the March quarter`s operating profit of R139 million
(US$15 million). This was due to the lower gold price.
Capital expenditure increased by 17 per cent from R265 million (US$27 million)
in the March quarter to R311 million (US$36 million) in the June quarter in
line with the planned project build-up. The increased expenditure was mainly
on
development and mechanised equipment.
Notional cash expenditure increased by 3 per cent from R373,733 per kilogram
(US$1,171 per ounce) to R386,245 per kilogram (US$1,403 per ounce) mainly due
to the increase in capital expenditure.
The forecast for the September quarter is as follows:
Gold produced - 1,900 kilograms (61,100 ounces)
Total cash cost* - R188,500 per kilogram (US$735 per ounce)
Capital expenditure* - R384 million (US$48 million)
Notional cash expenditure* - R399,500 per kilogram (US$1,555 per ounce)
* Based on an exchange rate of US$1 = R8.00.
South Deep will continue to focus on delivering the build-up to the planned
development metres, the completion of the Twin shaft infrastructure, new
tailings dam and delivery of increased gold production.
Year ended 30 June 2009 compared with
year ended 30 June 2008
Group attributable gold production decreased by 6 per cent from 3.64 million
ounces for the year ended June 2008 to 3.41 million ounces produced for the
year ended June 2009.
At the South African operations gold production decreased from 2.42 million
ounces to 2.04 million ounces. Driefontein`s gold production decreased by 11
per cent from 0.93 million ounces to 0.83 million ounces due to a decrease in
volumes mined related largely to safety factors. At Kloof, gold production
decreased by 22 per cent from 0.82 million ounces to 0.64 million ounces due
to
the Main shaft refurbishment project and safety related mine stoppages.
Beatrix`s gold production decreased by 11 per cent from 0.44 million ounces to
0.39 million ounces due to lower mining volumes, limited flexibility and lower
than planned quality mining factors. South Deep`s gold production decreased by
25 per cent from 0.23 million ounces to 0.17 million ounces due to the
termination of conventional VCR mining and the rehabilitation of the two main
access ramps.
At the international operations total managed gold production increased from
1.46 million ounces for the year ended June 2008 to1.65 million ounces for the
year ended June 2009. The main reason for this increase was the inclusion of
0.22 million equivalent ounces from Cerro Corona not included in the previous
year. Damang`s gold production increased by 3 per cent to 0.20 million ounces.
St Ives increased by 3 per cent from 0.42 million ounces to 0.43 million
ounces. This was mainly due to increased production at Argo and Cave Rocks.
Tarkwa was 5 per cent down at 0.61 million ounces mainly due to commissioning
issues at the new CIL plant, which affected the whole plant. Production at
Agnew decreased by 6 per cent to 0.19 million mainly due to the depletion of
Songvang stockpiles.
Revenue increased by 26 per cent (increased 2 per cent in US dollar terms)
from
R23,010 million (US$3,165 million) to R29,087 million (US$3,228 million). The
33 per cent higher average gold price at R253,459 per kilogram (US$875 per
ounce) compares with R190,623 per kilogram (US$816 per ounce) achieved for the
year ended June 2008. The rand weakened from US$1 = R7.27 to US$1 = R9.01, or
24 per cent, while the rand/Australian dollar weakened by 2 per cent from A$1
=
R6.52 to R6.67.
Operating costs, including gold-in-process movements, increased from R13,969
million to R17,624 million, or 26 per cent. In dollar terms operating costs
increased by 2 per cent from US$1,922 million to US$1,956 million. The
increase
in costs in rand terms was mainly due to the increases in electricity costs at
the South African and Ghanaian operations, exchange rate movements of R724
million mainly due to the weaker rand and the inclusion of Cerro Corona (R779
million) not included in the previous year. Total cash cost for the Group in
rand terms, increased from R111,315 per kilogram (US$476 per ounce) to
R149,398
per kilogram (US$516 per ounce) due to the above factors and the lower
production.
At the South African operations operating costs increased by 14 per cent from
R8,611 million (US$1,272 million) for the year ended June 2008 to R9,840
million (US$1,979 million) for the year ended June 2009. This was due to the
above inflation annual wage increases, 25 per cent increase in electricity
costs, and the increases in commodity prices, partially offset by the cost
saving initiatives implemented during the year. Total cash costs at the South
African operations increased from R109,117 per kilogram to R147,657 per
kilogram as a result of the above.
At the international operations, operating costs including gold-in- process
movements increased from R5,358 million (US$737 million) for the year ended
June 2008 to R7,784 million (US$864 million) for the year ended June 2009.
R742
million (US$82 million) was as a result of the inclusion of Cerro Corona (not
included in the previous year), while R724 million was as a result of exchange
rate movements. Added to this were the annual increases in salaries and
consumables at all the international operations driven by the resource boom
and
at St Ives the increase in the net smelter royalty due to the higher
Australian
dollar gold price.
Operating profit increased from R9,041 million (US$1,244 million) to R11,463
million (US$1,272 million). Profit before taxation and exceptional items was
similar year on year at R5,554 million (US$616 million). The movement on
exceptional items year on year was negative R2.6 billion (US$330 million) and
includes:
i) a profit on the sale of Essakane of R1.4 billion (US$201 million) in
financial 2008, and;
ii) a loss on the write down of our investment in Rusoro of R1.1 billion
(US$118 million) in financial 2009.
After accounting for the above items and taxation, net earnings amounted to
R1,536 million (US$171 million), compared with R4,458 million (US$613 million)
for the year ended June 2008.
Earnings excluding exceptional items, gains and losses on foreign exchange,
financial instruments, losses of associates after taxation and discontinued
operations amounted to R2,981 million (US$331 million) for the year ended June
2009 compared with R2,939 million (US$404 million) for the year ended June
2008.
Exploration and corporate development
Gold Fields concluded the quarter with a high level of drilling activity on
seven Greenfields projects in six countries (Australia, Peru, Chile, Mali,
China and Kyrgyzstan). Target definition work continued on seven prospective
Greenfields projects in five countries (Australia, Philippines, Peru, Chile
and
Canada) with the objective of commencing initial drilling on the best targets
within the next two quarters.
The Group continues to evaluate a number of new business development
opportunities with an emphasis on countries and prospective belts where we are
already operating. Many of these opportunities have only become available
recently due to the economic downturn and associated distress in the junior
market.
Advanced Drilling Projects
At the Chucapaca project in southern Peru, where Gold Fields can earn a 51 per
cent interest in a joint venture with Buenaventura (NYSE "BVN"), resource
delineation drilling resumed in June 2009. Drilling results from the Canahuire
Au-Cu discovery confirmed and expanded the potential of the deposit and an
aggressive programme is underway to complete a scoping study by the end of the
third quarter of financial 2010.
At the Talas project in Kyrgyzstan, 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"), four drill rigs are active delineating the resource potential at
the Taldybulak Au-Cu porphyry target. Results continue to be encouraging and
work is progressing toward the completion of an internal preliminary scoping
study by early calendar year 2010. Gold Fields also expects to complete its
initial earn-in to a 60 per cent interest in the joint venture by that time.
At the Komana project in Mali, Gold Fields and Glencar Mining plc (AIM: "GEX")
were unable to conclude a binding agreement under the terms of the previously
announced letter of intent. Gold Fields announced on 24 July 2009, an offer
for
all the shares of Glencar for a total cost of about GBP28 million. The Glencar
Board supported and recommended the offer. Field work at the project is
stopped
due to the onset of the rainy season.
Initial Drilling Projects
At the 51 per cent owned Sankarani joint venture with Glencar Mining plc (AIM:
"GEX") which is located adjacent to the Komana Project in Mali, positive
initial drilling results have broadly defined extensive mineralized trends
with
economic gold grades over significant drill widths at the Finguana, Bokoro,
and
Sanioumale shear-hosted orogenic gold targets. Field work is currently
suspended for the rainy season until September 2009.
At the East Lachlan joint ventures in New South Wales, Australia where Gold
Fields is earning into an 80 per cent interest in four project areas from
Clancy Exploration Ltd (ASX: "CLY"), field work this quarter focused on the
Myall and Cowal East Au-Cu porphyry projects. Significant porphyry-style Cu-Au
mineralisation was intersected by initial drilling on Kingswood target at
Myall. Diamond drilling on the Eurowie target at Cowal East intersected what
appears to be the distal alteration zone to a porphyry system and more
drilling
is planned.
In June 2009, Gold Fields announced the sale of its 19.9 per cent stake in
Sino
Gold Mining Ltd (ASX: SGX" and HKSE: "1862") and as a result, the exploration
alliance will be dissolved by the end of the September quarter. However, the
stage two initial drilling programme continues at the Jinshu joint venture
project.
At the Batangas joint venture in the Philippines, Gold Fields and Mindoro
Resources Ltd. (TSX.V: "MIO") signed a memorandum of understanding in May 2009
which allows Gold Fields to earn up to a 75 per cent interest in a large Cu-Au
project in southern Luzon. Community relations programmes and field work have
commenced with the objective of defining targets for initial drill testing
early in financial 2010.
At the SBX joint venture in Chile, Gold Fields can earn up to 90 per cent on
certain claims held by SBX Asesorias e Inversiones and 100 per cent on another
claim under an additional option agreement with Aguas Heladas. Initial
drilling
was completed at the Pircas and Piedra Parada epithermal and porphyry gold
targets. Positive results were returned from Pircas and a follow-up drilling
programme is planned next field season.
In late March 2009, Gold Fields signed a letter of intent with SBX Asesorias e
Inversiones, to earn up to a 70 per cent interest in the Ojo de Maricunga
porphyry gold project in Chile. Trenching, geophysical surveys, mapping and
sampling were completed prior to the end of the field season in May 2009. A
definitive joint venture agreement should be executed early in financial 2010.
At the Toodoggone joint venture in British Colombia, Canada, Gold Fields and
Cascadero Copper Corporation (TSX.V: "CCD") signed a definitive agreement in
March 2009 which allows Gold Fields to earn up to a 75 per cent interest in
Cascadero`s Toodoggone Cu-Au project. An airborne magnetics survey was
completed in April 2009. Field work commenced in June and includes ground
follow-up geophysics and geologic mapping. Initial drilling is scheduled to
start in August 2009.
At the Woodjam joint venture in British Colombia, Canada, Gold Fields signed a
letter of intent with the Woodjam Partners (Fjordland Exploration Inc. (TSX.V:
"FEX") and Cariboo Rose Resources (TSX.V: "CRB")) to earn-in to a 75 per cent
interest in a joint venture on a 40,000 hectare property covering several
known
porphyry Cu-Au targets in south-central British Colombia. Field work
consisting
of core re-logging, geological mapping and soil sampling has commenced while a
draft joint venture agreement is under review. Geophysical surveys and initial
drilling are scheduled to start in August 2009 pending execution of the joint
venture agreement.
Near Mine Exploration
At St. Ives, infill drilling at Athena has produced encouraging results and
demonstrates both grade and structural continuity in line with expectations.
The majority of drilling related to the Athena conceptual study has now been
completed. At Hamlet, deeper drilling is returning positive indications of
significant mineralisation. Drilling will continue testing along strike of
these results during July 2009 to assess if the high grade shoot opens up with
depth. Extensional drilling for open pit reserves has recommenced at Apollo
and
West Revenge.
At Agnew, framework drilling in the Waroonga - Redeemer Gap has returned a
number of narrow higher grade intersections within a broad zone of lower grade
material. Drilling north of the Maria pits has confirmed the Maria North
structure over a strike length of 500 metre and returned a number of high
grade
intersections.
At Damang, positive drilling results were returned from Nyame.
Together with previous results from the adjacent Tamang prospect, it appears
that the Damang mineralisation may extend for over two kilometres south of the
Damang pit cutback. Initial drilling on the Nohokoa project, located north of
Rex had to be halted due to heavy seasonal rains and difficult road access.
Phase 1 of the gravity and geophysics was completed.
At Cerro Corona, the Consolidada de Hualgayoc 50:50 joint venture with
Buenaventura (NYSE: "BVN") has delayed plans to initiate drilling at the
Titan-Arabe Cu-Au target until the September 2010 quarter due to ongoing
negotiations for access with the communities.
Corporate
Gold Fields sells stake in Sino Gold for US$282 million On 3 June 2009 Gold
Fields announced that agreement had been reached in terms of which Gold Fields
will sell its 19.9 per cent stake in Sino Gold Mining Limited (Sino Gold)
(ASX:SGX, HKSE: 1862) to Eldorado Gold Corporation (Eldorado) (TSX:ELD, NYSE-
A:
EGO) for a total consideration of approximately US$282 million (based on the
closing price of Eldorado on 2 June 2009).
Gold Fields received a share exchange ratio of 48 Eldorado shares for every
100
Sino Gold shares, which resulted in Gold Fields holding 27,824,654 Eldorado
shares or approximately 7 per cent of the outstanding shares of Eldorado on a
fully diluted basis.
In addition, Gold Fields will hold a top-up right for a period of 18 months,
which will apply should Eldorado purchase an additional 5 per cent or more of
the outstanding shares of Sino Gold and the sellers in that transaction
realise
a consideration ratio in excess of the share exchange ratio of 0.48 Eldorado
shares per Sino Gold share received by Gold Fields.
After having received several expressions of interest for our stake in Sino
Gold, this transaction was the most value creating for our shareholders
because it enabled us to crystallise the value of our investment in a liquid
share.
Employee housing programme
On 10 June 2009 Nick Holland officially opened Gold Fields` new
Employee Housing Programme in the communities of Glenharvie and
Blybank on the West Rand in South Africa. This programme consists of
192 family homes which will be occupied by employees of Driefontein
and Kloof.
The total cost of Gold Fields` continuing programme to renovate
housing, upgrade all single accommodation villages and construct new
family homes is approximately R550 million. This programme will be
completed by 2014.
Of the 192 family homes handed over, 100 are located in the Blybank community,
for occupation by Driefontein employees, and 92 are located in the Glenharvie
community, for occupation by Kloof employees. A considerable number of the
homes
have already been allocated.
The Employee Housing Programme is part of Gold Fields` total wellbeing
programme called "24 Hours in the Life of a Gold Fields Employee in the South
African Region". This programme is designed to improve every facet of the
health and well-being of employees, and addresses the key issues of safe
production, health care, nutrition, accommodation, sport and recreation, and
education and training.
Changes in directorate and leadership
Professor Gill Marcus has tendered her resignation from the Board of Gold
Fields Limited, with effect from 20 July 2009. This follows her appointment as
Governor of the South African Reserve Bank from 9 November 2009.
The Board thanks Professor Marcus for the significant contribution she has
made
to the affairs of Gold Fields since her appointment in 2007 and wishes her
every success.
On 4 August 2009 Gold Fields announced the appointment of three additional
members to its Group executive team, reporting to the Chief Executive Officer,
Nick Holland.
Peter Turner has been appointed as Executive Vice President: Head of the West
Africa Region;
Juan Luis Kruger ("Juancho") has been appointed as Executive Vice President:
Head of Operations for South America; and
Ben Zikmundovsky has been appointed as Executive Vice President:
Head of International Capital Projects and International Technical Services.
With these three executive appointments the Gold Fields Executive Team is now
complete and the senior leadership in place to progress Gold Fields` new
regionalisation strategy.
Wage settlement
A two year wage agreement was concluded at the South African operations on 28
July 2009. An average increase of 10.2 per cent for the year ended 30 June
2010
was concluded with Solidarity, UASA and NUM. From 1 July 2010, agreement was
reached on an annual increase based on CPI plus 1 per cent, with a minimum of
7.5 per cent.
Cash dividend
In line with the company`s policy to pay out 50 per cent of its earnings,
subject to investment opportunities, a final dividend has been declared
payable
to shareholders as follows:
final dividend number 71: 80 SA cents per share
last date to trade cum- dividend: Friday 21 August 2009
sterling and US dollar conversion date: Monday 24 August 2009
trading commences ex dividend: Monday 24 August 2009
record date: Friday 28 August 2009
payment date: Monday 31 August 2009
Share certificates may not be dematerialised or rematerialised between Monday,
24 August 2009 and Friday, 28 August 2009, both dates inclusive.
Outlook
In the September quarter attributable gold production is forecast to be
similar to the June quarter, as a result of the slower start-up in July
related to the safety stoppages at Kloof and Driefontein. Total cash costs
are forecast to increase from US$512 per ounce to US$590 per ounce or 15 per
cent, mainly due to wage and electricity increases in South Africa and the
stronger rand/US dollar exchange rate. The September quarter forecast is
based on an exchange rate of R/US$8.00 and US$/A$0.80 compared with R/US$8.56
and US$/A$0.75 achieved in the June quarter. In rand terms the total cash
cost is forecast at R151,000 per kilogram compared with R140,916 per kilogram
in the June quarter, an increase of 7 per cent. NCE is forecast at US$850 per
ounce (R220,000 per kilogram) compared with US$738 per ounce (R203,042 per
kilogram) in the June quarter, also significantly impacted by the wage and
electricity increases, the increase in capitalised ore reserve development at
the South African operations and increased capital expenditure at South Deep.
The above is subject to the forward looking statement. The forecast financial
information has not been reviewed and reported on by Gold Fields` auditors in
accordance with Section 8.40 (a).
Basis of accounting
The condensed consolidated preliminary financial information is prepared on
the
International Financial Reporting Standards (IFRS) basis. The detailed
financial, operational and development results for the June 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.
Audit review
The condensed consolidated preliminary financial information for the year
ended 30 June 2009 has been reviewed in accordance with International
Standards on Review Engagements 2410 - "Review of interim financial
information performed by the Independent Auditors of the entity" by
PricewaterhouseCoopers Inc. Their unqualified review opinion is available on
request from the Company Secretary and on the website.
N.J. Holland
Chief Executive Officer
6 August 2009
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND Quarter
June March June
2009 2009 2008
Revenue 7,779.4 8,509.5 6,452.4
Operating costs, net 4,441.7 4,523.7 3,731.1
- Operating costs 4,491.9 4,566.5 3,747.5
- Gold inventory change (50.2) (42.8) (16.4)
Operating profit 3,337.7 3,985.8 2,721.3
Amortisation and depreciation 1,067.1 1,140.9 777.9
Net operating profit 2,270.6 2,844.9 1,943.4
Net interest paid (170.7) (163.5) (14.7)
Share of (loss)/profit of associates
after taxation (11.6) 21.1 (31.7)
(Loss)/gain on foreign exchange (76.4) 128.7 (7.4)
Gain/(loss) on financial instruments 70.9 (5.1) 1.9
Share-based payments (20.0) (95.2) (75.2)
Other (126.3) (41.4) (0.6)
Exploration (170.7) (133.8) (107.0)
Profit before taxation and exceptional
items 1,765.8 2,555.7 1,708.7
Exceptional (loss)/gain (1,252.4) (203.1) (94.8)
Profit before taxation 513.4 2,352.6 1,613.9
Mining and income taxation 657.2 943.3 663.7
- Normal taxation 426.2 536.4 484.1
- Royalties 96.2 97.6 71.3
- Deferred taxation 134.8 309.3 108.3
Net (loss)/profit from continued
operations (143.8) 1,409.3 950.2
Profit from discontinued operations - - -
Profit adjustment on sale of Venezuelan
assets - - -
Net (loss)/profit (143.8) 1,409.3 950.2
Attributable to:
- Ordinary shareholders (293.3) 1,306.6 842.9
- Minority shareholders 149.5 102.7 107.3
Exceptional items:
Profit/(loss) on sale of investments 64.9 (213.6) 1.5
(Loss)/profit on sale of assets (5.7) 11.0 (0.8)
Restructuring costs (103.3) (0.5) (65.2)
Driefontein 9 shaft closure costs 1.9 - 20.8
Insurance claim - South Deep - - -
Impairments of assets and investments (1,209.5) - (51.2)
Other (0.7) - 0.1
Total exceptional items (1,252.4) (203.1) (94.8)
Taxation 40.3 (2.1) 31.0
Net exceptional items after taxation and
minorities (1,212.1) (205.2) (63.8)
Net (loss)/earnings (293.3) 1,306.6 842.9
Net (loss)/earnings per share (cents) (46) 195 129
Diluted (loss)/earnings per share (cents) (46) 193 120
Headline earnings 855.4 1,511.6 880.6
Headline earnings per share (cents) 126 225 135
Net earnings excluding gains and losses
on foreign exchange, financial
instruments, exceptional items, share of
profit/(loss) of associates after 949.3 1,368.9 942.8
taxation and discontinued operations
Net earnings per share excluding gains
and losses on foreign exchange,
financial instruments, exceptional items,
share of profit/(loss) of 140 204 144
associates after taxation and
discontinued operations (cents)
Gold sold - managed kg 30,729 29,435 28,861
Gold price received R/kg 253,162 289,095 223,568
Total cash cost R/kg 140,916 150,301 125,359
Year ended
June June
2009 2008
Revenue 29,086.9 23,009.5
Operating costs, net 17,623.6 13,968.7
- Operating costs 17,833.9 13,883.2
- Gold inventory change (210.3) 85.5
Operating profit 11,463.3 9,040.8
Amortisation and depreciation 4,142.3 3,025.6
Net operating profit 7,321.0 6,015.2
Net interest paid (609.9) (313.2)
Share of (loss)/profit of associates after taxation (141.3) (8.9)
(Loss)/gain on foreign exchange 91.7 13.6
Gain/(loss) on financial instruments (55.9) 85.5
Share-based payments (303.4) (150.6)
Other (240.2) 21.0
Exploration (508.3) (327.8)
Profit before taxation and exceptional items 5,553.7 5,334.8
Exceptional (loss)/gain (1,346.1) 1,309.5
Profit before taxation 4,207.6 6,644.3
Mining and income taxation 2,353.5 1,937.7
- Normal taxation 1,219.0 1,169.8
- Royalties 339.4 243.3
- Deferred taxation 795.1 524.6
Net (loss)/profit from continued operations 1,854.1 4,706.6
Profit from discontinued operations - 37.0
Profit adjustment on sale of Venezuelan assets - 74.2
Net (loss)/profit 1,854.1 4,817.8
Attributable to:
- Ordinary shareholders 1,535.6 4,457.5
- Minority shareholders 318.5 360.3
Exceptional items:
Profit/(loss) on sale of investments (148.0) 1,416.2
(Loss)/profit on sale of assets 4.3 33.6
Restructuring costs (125.5) (65.2)
Driefontein 9 shaft closure costs 1.9 (24.0)
Insurance claim - South Deep 131.4 -
Impairments of assets and investments (1,209.5) (51.2)
Other (0.7) 0.1
Total exceptional items (1,346.1) 1,309.5
Taxation (7.1) 30.2
Net exceptional items after taxation and minorities (1,353.2) 1,339.7
Net (loss)/earnings 1,535.6 4,457.5
Net (loss)/earnings per share (cents) 229 683
Diluted (loss)/earnings per share (cents) 227 637
Headline earnings 2,890.0 2,992.3
Headline earnings per share (cents) 431 459
Net earnings excluding gains and losses on foreign
exchange, financial
instruments, exceptional items, share of
profit/(loss) of associates after 2,980.8 2,939.2
taxation and discontinued operations
Net earnings per share excluding gains and losses on
foreign exchange,
financial instruments, exceptional items, share of
profit/(loss) of 445 450
associates after taxation and discontinued
operations (cents)
Gold sold - managed kg 114,760 120,707
Gold price received R/kg 253,459 190,623
Total cash cost R/kg 149,398 111,315
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
UNITED STATES DOLLARS Quarter
June March June
2009 2009 2008
Revenue 902.2 868.5 836.3
Operating costs, net 516.9 453.0 481.6
- Operating costs 522.7 457.1 484.1
- Gold inventory change (5.8) (4.1) (2.5)
Operating profit 385.3 415.5 354.7
Amortisation and depreciation 124.0 115.4 100.1
Net operating profit 261.3 300.1 254.6
Net interest paid (19.8) (16.5) (1.7)
Share of (loss)/profit of associates after
taxation (1.5) 3.0 (3.8)
(Loss)/gain on foreign exchange (8.2) 13.9 (1.1)
Gain/(loss) on financial instruments 7.6 0.1 -
Share-based payments (2.8) (9.5) (9.7)
Other (14.3) (4.1) (0.5)
Exploration (19.5) (13.7) (14.0)
Profit before taxation and exceptional items 202.8 273.3 223.8
Exceptional (loss)/gain (139.2) (22.7) (17.4)
Profit before taxation 63.6 250.6 206.4
Mining and income taxation 76.0 99.4 87.4
- Normal taxation 48.7 57.4 64.6
- Royalties 11.2 9.9 9.2
- Deferred taxation 16.1 32.1 13.6
Net (loss)/profit from continued operations (12.4) 151.2 119.0
(Loss)/profit from discontinued operations - - (0.1)
(Loss)/profit adjustment on sale of
Venezuelan assets - - (0.2)
Net (loss)/profit (12.4) 151.2 118.7
Attributable to:
- Ordinary shareholders (29.3) 140.4 104.7
- Minority shareholders 16.9 10.8 14.0
Exceptional items:
Profit/(loss) on sale of investments 6.8 (23.3) (4.2)
(Loss)/profit on sale of assets (0.6) 1.2 (0.2)
Restructuring costs (11.5) 0.1 (9.0)
Driefontein 9 shaft closure costs 0.2 - 3.0
Insurance claim - South Deep 0.3 (0.7) -
Impairments of assets and investments (134.2) - (7.0)
Other (0.2) - -
Total exceptional items (139.2) (22.7) (17.4)
Taxation 4.4 - 4.3
Net exceptional items after taxation and
minorities (134.8) (22.7) (13.1)
Net (loss)/earnings (29.3) 140.4 104.7
Net (loss)/earnings per share (cents) (5) 21 16
Diluted (loss)/earnings per share (cents) (5) 21 16
Headline earnings 98.7 162.5 111.1
Headline earnings per share (cents) 15 24 17
Net earnings excluding gains and losses on
foreign exchange, financial
instruments, exceptional items, share of
profit/(loss) of associates after 109.0 146.3 122.9
taxation and discontinued operations
Net earnings per share excluding gains and
losses on foreign exchange,
financial instruments, exceptional items,
share of profit/(loss) of 16 21 19
associates after taxation and discontinued
operations (cents)
South African rand/United States dollar
conversion rate 8.56 9.93 7.77
South African rand/Australian dollar
conversion rate 6.46 6.59 7.33
Gold sold - managed ozs (000) 988 946 928
Gold price received $/oz 920 906 895
Total cash cost $/oz 512 471 502
Year ended
June June
2009 2008
Revenue 3,228.3 3,165.0
Operating costs, net 1,956.0 1,921.5
- Operating costs 1,979.3 1,909.7
- Gold inventory change (23.3) 11.8
Operating profit 1,272.3 1,243.5
Amortisation and depreciation 459.7 416.2
Net operating profit 812.6 827.3
Net interest paid (67.7) (43.1)
Share of (loss)/profit of associates after taxation (15.7) (1.2)
(Loss)/gain on foreign exchange 10.2 1.9
Gain/(loss) on financial instruments (6.2) 11.8
Share-based payments (33.7) (20.7)
Other (26.7) 2.9
Exploration (56.4) (45.1)
Profit before taxation and exceptional items 616.4 733.8
Exceptional (loss)/gain (149.4) 180.1
Profit before taxation 467.0 913.9
Mining and income taxation 261.2 266.6
- Normal taxation 135.3 160.9
- Royalties 37.7 33.5
- Deferred taxation 88.2 72.2
Net (loss)/profit from continued operations 205.8 647.3
(Loss)/profit from discontinued operations - 5.1
(Loss)/profit adjustment on sale of Venezuelan assets - 10.2
Net (loss)/profit 205.8 662.6
Attributable to:
- Ordinary shareholders 170.5 613.0
- Minority shareholders 35.3 49.6
Exceptional items:
Profit/(loss) on sale of investments (16.4) 194.8
(Loss)/profit on sale of assets 0.5 4.6
Restructuring costs (13.9) (9.0)
Driefontein 9 shaft closure costs 0.2 (3.3)
Insurance claim - South Deep 14.6 -
Impairments of assets and investments (134.2) (7.0)
Other (0.2) -
Total exceptional items (149.4) 180.1
Taxation (0.8) 4.2
Net exceptional items after taxation and minorities (150.2) 184.3
Net (loss)/earnings 170.5 613.0
Net (loss)/earnings per share (cents) 25 94
Diluted (loss)/earnings per share (cents) 25 88
Headline earnings 320.8 411.6
Headline earnings per share (cents) 48 63
Net earnings excluding gains and losses on foreign
exchange, financial
instruments, exceptional items, share of profit/(loss)
of associates after 330.8 404.3
taxation and discontinued operations
Net earnings per share excluding gains and losses on
foreign exchange,
financial instruments, exceptional items, share of
profit/(loss) of 49 62
associates after taxation and discontinued operations
(cents)
South African rand/United States dollar conversion rate 9.01 7.27
South African rand/Australian dollar conversion rate 6.67 6.52
Gold sold - managed ozs (000) 3,690 3,881
Gold price received $/oz 875 816
Total cash cost $/oz 516 476
Balance sheet
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
June June
2009 2008
Property, plant and equipment 48,337.4 45,533.3
Goodwill 4,458.9 4,458.9
Non-current assets 886.7 746.7
Investments 2,970.8 5,704.2
Current assets 8,548.1 6,450.5
- Other current assets 5,744.2 4,443.2
- Cash and deposits 2,803.9 2,007.3
Total assets 65,201.9 62,893.6
Shareholders` equity 42,669.4 42,561.2
Deferred taxation 6,128.8 5,421.9
Long-term loans 6,334.3 6,513.9
Environmental rehabilitation provisions 2,267.9 2,015.5
Post-retirement health care provisions 20.5 21.0
Other long-term provisions 31.2 -
Current liabilities 7,749.8 6,360.1
- Other current liabilities 5,188.6 5,875.9
- Current portion of long-term loans 2,561.2 484.2
Total equity and liabilities 65,201.9 62,893.6
South African rand/US dollar conversion rate
South African rand/Australian dollar conversion rate
UNITED STATES DOLLARS
June June
2009 2008
Property, plant and equipment 5,997.2 5,691.7
Goodwill 553.2 557.4
Non-current assets 110.0 93.3
Investments 368.6 713.0
Current assets 1,060.6 806.3
- Other current assets 712.7 555.4
- Cash and deposits 347.9 250.9
Total assets 8,089.6 7,861.7
Shareholders` equity 5,294.0 5,320.1
Deferred taxation 760.4 677.7
Long-term loans 785.9 814.2
Environmental rehabilitation provisions 281.4 251.9
Post-retirement health care provisions 2.5 2.6
Other long-term provisions 3.9 -
Current liabilities 961.5 795.2
- Other current liabilities 643.7 734.7
- Current portion of long-term loans 317.8 60.5
Total equity and liabilities 8,089.6 7,861.7
South African rand/US dollar conversion rate 8.06 8.00
South African rand/Australian dollar conversion rate 6.43 7.66
Condensed changes in equity
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
June June
2009 2008
Balance at the beginning of the financial year 42,561.2 37,106.3
Issue of share capital 25.8 0.5
Increase in share premium 70.8 72.2
Marked to market valuation of listed investments (813.7) 320.0
Dividends paid (981.0) (1,044.8)
Increase in share-based payment reserve 303.4 153.3
Profit attributable to ordinary shareholders 1,535.6 4,457.5
Profit attributable to minority shareholders 318.5 360.3
Increase/(decrease) in minority interest 747.5 (439.8)
Loss on transacting with minorities - (74.7)
Currenc y translation adjustment and other (827.5) 2,104.5
Reserves released on sale of Venezuelan assets - (454.1)
Dilution loss on associate (331.9) -
Share of equity investee`s other equity movements 60.7 -
Balance as at the end of June 42,669.4 42,561.2
UNITED STATES DOLLARS
June June
2009 2008
Balance at the beginning of the financial year 5,320.1 5,189.7
Issue of share capital 2.9 0.1
Increase in share premium 7.9 9.9
Marked to market valuation of listed investments (90.3) 44.0
Dividends paid (121.2) (143.7)
Increase in share-based payment reserve 33.7 21.1
Profit attributable to ordinary shareholders 170.5 613.1
Profit attributable to minority shareholders 35.3 49.6
Increase/(decrease) in minority interest 97.6 (60.5)
Loss on transacting with minorities - (10.3)
Currenc y translation adjustment and other (132.4) (330.4)
Reserves released on sale of Venezuelan assets - (62.5)
Dilution loss on associate (36.8) -
Share of equity investee`s other equity movements 6.7 -
Balance as at the end of June 5,294.0 5,320.1
Reconciliation of headline earnings with net earnings
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
June June
2009 2008
Net earnings 1,535.6 4,457.5
Loss/(profit) on sale of investments 148.0 (1,416.2)
Taxation effect on sale of investments - 2.2
Loss/(profit) on sale of assets (4.3) (33.6)
Taxation effect on sale of assets 1.2 20.8
Impairment of investments and assets 1,209.5 51.2
Profit on sale of Venezuelan assets - (74.2)
Taxation effect on other exceptional items - (15.4)
Headline earnings 2,890.0 2,992.3
Headline earnings per share - cents 431 459
Based on headline earnings as given above divided by
670,328,262
for June 2009 (June 2008 - 652,538,212) being the
weighted average
number of ordinary shares in issue.
UNITED STATES DOLLARS
June June
2009 2008
Net earnings 170.5 613.0
Loss/(profit) on sale of investments 16.4 (194.8)
Taxation effect on sale of investments - 0.3
Loss/(profit) on sale of assets (0.5) (4.6)
Taxation effect on sale of assets 0.2 2.9
Impairment of investments and assets 134.2 7.1
Profit on sale of Venezuelan assets - (10.2)
Taxation effect on other exceptional items - (2.1)
Headline earnings 320.8 411.6
Headline earnings per share - cents 48 63
Based on headline earnings as given above divided by
670,328,262
for June 2009 (June 2008 - 652,538,212) being the
weighted average
number of ordinary shares in issue.
Cash flow statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND Quarter
June March June
2009 2009 2008
Cash flows from operating activities 2,281.6 2,947.2 2,567.9
Profit before tax and exceptional
items 1,765.8 2,555.7 1,708.7
Exceptional items (1,252.4) (203.1) (94.8)
Amortisation and depreciation 1,067.1 1,140.9 777.9
Change in working capital (125.8) (211.8) 262.5
Taxation paid (322.5) (445.2) (194.6)
Other non-cash items 1,149.4 110.7 108.2
Discontinued operations - - -
Dividends paid (0.1) (196.1) (424.9)
Ordinary shareholders (0.1) (196.1) (424.9)
Cash flows from investing activities (1,577.9) (1,449.8) (3,219.5)
Capital expenditure - additions (1,790.5) (1,700.7) (2,524.8)
Capital expenditure - proceeds on
disposal 19.4 10.2 6.5
Sale of subsidiaries - 45.0 -
Purchase of investments (17.9) 1.9 (707.5)
Proceeds on the disposal of
investments 282.0 200.0 65.4
Environmental and post-retirement
health care pa yments (70.9) (6.2) (59.1)
Discontinued operations - - -
Cash flows from financing activities (274.0) 94.4 1,095.1
Loans received 1,143.0 4,947.4 1,164.6
Loans repaid (1,392.2) (4,972.8) (850.0)
Minority shareholders loans
(repaid)/received (54.3) 64.6 768.0
Shares issued 29.5 55.2 12.5
Net cash inflow/(outflow) 429.6 1,395.7 18.6
Translation adjustment (162.6) 87.6 44.6
Cash at beginning of period 2,536.9 1,053.6 1,944.1
Cash at end of period 2,803.9 2,536.9 2,007.3
Year ended
June June
2009 2008
Cash flows from operating activities 6,984.2 7,739.5
Profit before tax and exceptional items 5,553.7 5,334.8
Exceptional items (1,346.1) 1,309.5
Amortisation and depreciation 4,142.3 3,025.6
Change in working capital (1,183.8) 262.3
Taxation paid (1,812.8) (923.4)
Other non-cash items 1,630.9 (1,395.7)
Discontinued operations - 126.4
Dividends paid (981.0) (1,044.8)
Ordinary shareholders (981.0) (1,044.8)
Cash flows from investing activities (7,285.8) (7,729.8)
Capital expenditure - additions (7,649.2) (9,013.9)
Capital expenditure - proceeds on disposal 32.0 42.2
Sale of subsidiaries 45.0 1,042.1
Purchase of investments (99.3) (977.6)
Proceeds on the disposal of investments 482.0 99.8
Environmental and post-retirement health care pa
yments (96.3) (87.0)
Discontinued operations - 1,164.6
Cash flows from financing activities 2,086.7 557.1
Loans received 10,210.8 4,335.9
Loans repaid (8,231.0) (4,619.5)
Minority shareholders loans (repaid)/received 10.3 768.0
Shares issued 96.6 72.7
Net cash inflow/(outflow) 804.1 (478.0)
Translation adjustment (7.5) 175.2
Cash at beginning of period 2,007.3 2,310.1
Cash at end of period 2,803.9 2,007.3
UNITED STATES DOLLARS Quarter
June March June
2009 2009 2008
Cash flows from operating activities 264.9 328.1 334.0
Profit before tax and exceptional items 202.8 273.3 223.8
Exceptional items (139.2) (22.7) (17.4)
Amortisation and depreciation 124.0 115.4 100.1
Change in working capital (15.9) (19.1) 36.1
Taxation paid (35.2) (29.2) (27.7)
Other non-cash items 128.4 10.4 19.5
Discontinued operations - - (0.4)
Dividends paid - (19.3) (53.9)
Ordinary shareholders - (19.3) (53.9)
Cash flows from investing activities (184.4) (140.2) (429.0)
Capital expenditure - additions (209.4) (166.0) (327.2)
Capital expenditure - proceeds on disposal 2.2 1.1 0.8
Sale of subsidiaries 0.1 4.9 (3.3)
Purchase of investments (1.9) (1.4) (96.5)
Proceeds on the disposal of investments 32.5 21.8 8.9
Environmental and post-retirement health
care pa yments (7.9) (0.6) (8.1)
Discontinued operations - - (3.6)
Cash flows from financing activities (52.2) 11.5 142.7
Loans received 133.5 496.9 150.4
Loans repaid (182.4) (498.0) (105.2)
Minority shareholders loans
(repaid)/received (6.7) 6.7 96.0
Shares issued 3.4 5.9 1.5
Net cash inflow/(outflow) 28.3 180.1 (6.2)
Translation adjustment 54.2 (24.0) 14.4
Cash at beginning of period 265.4 109.3 242.7
Cash at end of period 347.9 265.4 250.9
Year ended
June June
2009 2008
Cash flows from operating activities 778.4 1,048.1
Profit before tax and exceptional items 616.4 733.8
Exceptional items (149.4) 180.1
Amortisation and depreciation 459.7 416.2
Change in working capital (131.4) 36.1
Taxation paid (197.9) (143.5)
Other non-cash items 181.0 (192.0)
Discontinued operations - 17.4
Dividends paid (121.2) (142.5)
Ordinary shareholders (121.2) (142.5)
Cash flows from investing activities (809.6) (1,063.4)
Capital expenditure - additions (849.0) (1,239.9)
Capital expenditure - proceeds on disposal 3.6 5.8
Sale of subsidiaries 5.0 143.3
Purchase of investments (12.8) (134.5)
Proceeds on the disposal of investments 54.3 13.7
Environmental and post-retirement health care pa
yments (10.7) (12.0)
Discontinued operations - 160.2
Cash flows from financing activities 255.7 67.0
Loans received 1,137.9 596.4
Loans repaid (892.9) (635.4)
Minority shareholders loans (repaid)/received - 96.0
Shares issued 10.7 10.0
Net cash inflow/(outflow) 103.3 (90.8)
Translation adjustment (6.3) 18.6
Cash at beginning of period 250.9 323.1
Cash at end of period 347.9 250.9
Hedging / Derivatives
The Group`s policy is to remain unhedged to the gold price. However, hedges
are
sometimes undertaken on a project specific basis as follows:
to protect cash flows at times of significant expenditure;
for specific debt servicing requirements; and
to safeguard the viability of higher cost operations.
Gold Fields may from time to time establish currency financial instruments to
protect underlying cash flows.
Gold Fields has various currency financial instruments - those remaining are
described in the schedule.
Position at end of June 2009
W estern 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 W estern 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. In June 2009, a
further
amount of US$44 million was repaid against the loan, and the forward cover was
reduced by US$44 million. The balance of US$274 million was extended to 15
July
2009, being the next interest repayment date on the loan, at an average
forward
rate of R8.0893. At 30 June 2009 the unrealised foreign exchange loss on the
revaluation of the US$274 million loan was R210 million. This loss was offset
by R210 million cumulative positive gains on the forward cover purchased at an
original rate of R7.3279. During the June quarter R65 million of forward cover
costs were accounted for as part of interest, as this forward cover has been
designated as a hedging instrument.
South Africa US Dollars / Rand forward sales
In October 2008, US$150 million of expected gold revenue for the December
quarter was sold forward on behalf of the South African operations. In
December
2008, the US$150 million was extended to the March quarter at an average
forward rate of R10.3818. During the Ma rch quarter US$30 million was settled
at a gain for the quarter of 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. 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 R54 million. This was 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 were taken out. The total of US$64 million was extended into 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(R20 million). This
was accounted for in the income statement in the June quarter.
South Africa currency forward contracts
During financial 2009, South African rand forward cover was taken out to cover
commitments of the South African operations in various currencies. Outstanding
at the end of June 2009 were forward cover contracts of US$11 million, with a
final expiry on 31 August 2009. The marked to market value for the outstanding
contracts at the end of June 2009 was negative by R3 million.
Ghana currency forward sales
During financial 2009, forward cover was taken out to cover various
commitments
of Gold Fields Ghana Ltd. Outstanding at the end of June 2009 were forward
cover contracts amounting to the equivalent of US$1.5 million, with a final
expiry on 31 July 2009. The marked to market value of the outstanding
contracts
at the end of June 2009 was positive by US$0.1 million.
Diesel financial instruments*
Ghana
The Ghanaian operations purchased four Asian st yle 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 of the above call
options purchased was positive by US$0.1 million at the end of June 2009.
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 positive by US$0.1 million at the end of June 2009.
Copper financial instruments*
Peru
During June 2009 8,705 tons of Cerro Corona`s expected copper production for
financial 2010 was sold forward for monthly deliveries, starting on 24 June
2009 to 23 June 2010. The average forward price for the monthly deliveries is
US$5,001 per ton. An additional 8,705 tons of Cerro Corona`s expected copper
production for financial 2010 was hedged by means of a zero cost collar,
guaranteeing a minimum price of US$4,600 per ton with full participation up to
a maximum price of US$5,400 per ton. The marked to market value of both
instruments at the end of June 2009 was negative by R14 million (US$2
million).
* Do not qualif y for hedge accounting and will be accounted for in the income
statement.
Debt maturity ladder
F2010 F2011 F2012
Loan facilities(committed and uncommitted),
including preference shares and commercial
paper
R`million 4,065.4 684.2 -
US$`million 39.5 325.3 516.9
Utilisation - Loan facilities(committed and
uncommitted),
including preference shares and commercial
paper
R`million 2,242.8 684.2 -
US$`million 39.5 86.3 515.4
Dollar debt translated to rand 318.4 695.6 4,154.1
Total (R`m) 2,561.2 1,379.8 4,838.2
Long-term loans per balance sheet (R`m)
Current portion of long-term loans per
balance sheet (R`m)
Total per balance sheet (R`m)
F2013 to F2017 Total
Loan facilities(committed and uncommitted),
including preference shares and commercial paper
R`million 1,500.0 6,249.6
US$`million 99.3 981.0
Utilisation - Loan facilities(committed and
uncommitted),
including preference shares and commercial paper
R`million - 2,927.0
US$`million 99.3 740.5
Dollar debt translated to rand 800.4 5,968.5
Total (R`m) 800.4 8,895.5
Long-term loans per balance sheet (R`m) 6,334.3
Current portion of long-term loans per balance
sheet (R`m) 2,561.2
Total per balance sheet (R`m) 8,895.5
Exchange rate: US$1 = R8.06 being the closing rate at the end of the June 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)
June 2009 4,491.9 2,508.3 905.4 762.7
March 2009 4,566.5 2,434.2 867.7 762.9
Financial year ended 17,833.9 9,839.9 3,530.5 3,083.8
Gold-in-process and
inventory change*
June 2009 (40.3) - - -
March 2009 (44.3) - - -
Financial year ended (192.2) - - -
Less:
Rehabilitation costs
June 2009 35.1 26.3 12.0 7.9
March 2009 39.4 29.4 10.3 10.2
Financial year ended 125.2 93.4 36.3 31.6
Production taxes
June 2009 5.7 5.7 0.6 3.0
March 2009 5.5 5.5 0.8 2.7
Financial year ended 25.0 25.0 4.9 11.9
General and admin
June 2009 189.4 94.8 35.5 27.8
March 2009 181.8 98.7 36.3 29.4
Financial year ended 711.0 383.6 142.6 113.9
Exploration costs
June 2009 - - - -
March 2009 (32.5) - - -
Financial year ended - - - -
Cash operating costs
June 2009 4,221.4 2,381.5 857.3 724.0
March 2009 4,328.0 2,300.6 820.3 720.6
Financial year ended 16,780.5 9,337.9 3,346.7 2,926.4
Plus:
Production taxes
June 2009 5.7 5.7 0.6 3.0
March 2009 5.5 5.5 0.8 2.7
Financial year ended 25.0 25.0 4.9 11.9
Royalties
June 2009 103.1 - - -
March 2009 90.6 - - -
Financial year ended 339.4 - - -
TOTAL CASH COST (2)
June 2009 4,330.2 2,387.2 857.9 727.0
March 2009 4,424.1 2,306.1 821.1 723.3
Financial year ended 17,144.9 9,362.9 3,351.6 2,938.3
Plus:
Amortisation*
June 2009 1,023.8 572.7 174.5 175.7
March 2009 1,105.0 520.8 167.4 180.4
Financial year ended 3,967.5 2,036.0 624.9 692.7
Rehabilitation
June 2009 35.1 26.3 12.0 7.9
March 2009 39.4 29.4 10.3 10.2
Financial year ended 125.2 93.4 36.3 31.6
TOTAL PRODUCTION COST(3)
June 2009 5,389.1 2,986.2 1,044.4 910.6
March 2009 5,568.5 2,856.3 998.8 913.9
Financial year ended 21,237.6 11,492.3 4,012.8 3,662.6
Gold sold - thousand
ounces
June 2009 988.0 528.8 213.2 160.9
March 2009 946.4 517.2 215.2 173.8
Financial year ended 3,689.6 2,038.7 829.9 643.0
TOTAL CASH COST
- US$/oz
June 2009 512 527 470 528
March 2009 471 449 384 419
Financial year ended 516 510 448 507
TOTAL CASH COST
- R/kg
June 2009 140,916 145,145 129,397 145,284
March 2009 150,301 143,343 122,680 133,796
Financial year ended 149,398 147,657 129,837 146,930
TOTAL PRODUCTION COST
- US$/oz
June 2009 637 660 572 661
March 2009 593 556 467 530
Financial year ended 639 626 537 632
South African Operations
South
Beatrix Deep Total
Operating costs (1)
June 2009 528.2 312.0 1,983.6
March 2009 507.7 295.9 2,132.3
Financial year ended 2,037.6 1,188.0 7,994.0
Gold-in-process and
inventory change*
June 2009 - - (40.3)
March 2009 - - (44.3)
Financial year ended - - (192.2)
Less:
Rehabilitation costs
June 2009 4.1 2.3 8.8
March 2009 5.5 3.4 10.0
Financial year ended 16.3 9.2 31.8
Production taxes
June 2009 1.2 0.9 -
March 2009 1.0 1.0 -
Financial year ended 4.3 3.9 -
General and admin
June 2009 19.1 12.4 94.6
March 2009 20.5 12.5 83.1
Financial year ended 77.5 49.6 327.4
Exploration costs
June 2009 - - -
March 2009 - - (32.5)
Financial year ended - - -
Cash operating costs
June 2009 503.8 296.4 1,839.9
March 2009 480.7 279.0 2,027.4
Financial year ended 1,939.5 1,125.3 7,442.6
Plus:
Production taxes
June 2009 1.2 0.9 -
March 2009 1.0 1.0 -
Financial year ended 4.3 3.9 -
Royalties
June 2009 - - 103.1
March 2009 - - 90.6
Financial year ended - - 339.4
TOTAL CASH COST (2)
June 2009 505.0 297.3 1,943.0
March 2009 481.7 280.0 2,118.0
Financial year ended 1,943.8 1,129.2 7,782.0
Plus:
Amortisation*
June 2009 124.8 97.7 451.1
March 2009 99.6 73.4 584.2
Financial year ended 435.2 283.2 1,931.5
Rehabilitation
June 2009 4.1 2.3 8.8
March 2009 5.5 3.4 10.0
Financial year ended 16.3 9.2 31.8
TOTAL PRODUCTION COST (3)
June 2009 633.9 397.3 2,402.9
March 2009 586.8 356.8 2,712.2
Financial year ended 2,395.3 1,421.6 9,745.3
Gold sold - thousand ounces
June 2009 102.9 51.9 459.2
March 2009 80.0 48.2 429.1
Financial year ended 391.1 174.7 1,650.9
TOTAL CASH COST
- US$/oz
June 2009 574 669 494
March 2009 606 585 497
Financial year ended 552 717 523
TOTAL CASH COST
- R/kg
June 2009 157,862 184,201 136,047
March 2009 193,532 186,667 158,687
Financial year ended 159,799 207,803 151,549
TOTAL PRODUCTION COST
- US$/oz
June 2009 720 894 611
March 2009 738 745 636
Financial year ended 680 903 655
International Operations
Ghana Peru
Cerro
Tarkwa Damang Corona
Operating costs (1)
June 2009 713.4 267.6 257.0
March 2009 811.2 311.9 258.3
Financial year ended 3,046.5 1,193.3 778.7
Gold-in-process and
inventory change*
June 2009 (33.6) 7.0 3.6
March 2009 (41.9) 1.4 14.1
Financial year ended (148.1) (20.8) (27.4)
Less:
Rehabilitation costs
June 2009 1.7 1.1 3.6
March 2009 2.0 0.8 4.0
Financial year ended 7.2 1.9 11.3
Production taxes
June 2009 - - -
March 2009 - - -
Financial year ended - - -
General and admin
June 2009 46.2 7.0 13.7
March 2009 40.4 7.8 13.7
Financial year ended 163.7 26.5 40.2
Exploration costs
June 2009 - - -
March 2009 - (16.7) -
Financial year ended - - -
Cash operating costs
June 2009 631.9 266.5 243.3
March 2009 726.9 321.4 254.7
Financial year ended 2,727.5 1,144.1 699.8
Plus:
Production taxes
June 2009 - - -
March 2009 - - -
Financial year ended - - -
Royalties
June 2009 46.2 12.7 14.2
March 2009 33.7 14.0 6.8
Financial year ended 145.2 47.5 23.4
TOTAL CASH COST (2)
June 2009 678.1 279.2 257.5
March 2009 760.6 335.4 261.5
Financial year ended 2,872.7 1,191.6 723.2
Plus:
Amortisation*
June 2009 72.7 51.9 94.8
March 2009 158.1 48.6 140.6
Financial year ended 480.9 169.4 330.0
Rehabilitation
June 2009 1.7 1.1 3.6
March 2009 2.0 0.8 4.0
Financial year ended 7.2 1.9 11.3
TOTAL PRODUCTION COST (3)
June 2009 752.5 332.2 355.9
March 2009 920.7 384.8 406.1
Financial year ended 3,360.8 1,362.9 1,064.5
Gold sold - thousand ounces
June 2009 164.7 53.4 86.9
March 2009 152.2 52.5 65.3
Financial year ended 612.4 200.4 217.8
TOTAL CASH COST
- US$/oz
June 2009 481 611 337
March 2009 503 643 422
Financial year ended 521 660 369
TOTAL CASH COST
- R/kg
June 2009 132,390 168,104 92,752
March 2009 160,701 205,263 134,757
Financial year ended 150,814 191,179 106,777
TOTAL PRODUCTION COST
- US$/oz
June 2009 534 727 478
March 2009 609 738 626
Financial year ended 609 755 543
International Operations
Australia #
St Ives Agnew
Operating costs (1)
June 2009 586.9 158.7
March 2009 591.4 159.5
Financial year ended 2,301.6 673.9
Gold-in-process and
inventory change*
June 2009 (14.0) (3.3)
March 2009 (25.7) 7.8
Financial year ended (10.7) 14.8
Less:
Rehabilitation costs
June 2009 1.7 0.7
March 2009 2.7 0.5
Financial year ended 8.6 2.8
Production taxes
June 2009 - -
March 2009 - -
Financial year ended - -
General and admin
June 2009 19.6 8.1
March 2009 15.6 5.6
Financial year ended 67.3 29.7
Exploration costs
June 2009 - -
March 2009 (13.3) (2.5)
Financial year ended - -
Cash operating costs
June 2009 551.6 146.6
March 2009 560.7 163.7
Financial year ended 2,215.0 656.2
Plus:
June 2009 - -
Production taxes
March 2009 - -
Financial year ended - -
Royalties
June 2009 21.3 8.7
March 2009 25.0 11.1
Financial year ended 85.8 37.5
TOTAL CASH COST (2)
June 2009 572.9 155.3
March 2009 585.7 174.8
Financial year ended 2,300.8 693.7
Plus:
June 2009 231.7
Amortisation*
March 2009 236.9
Financial year ended 951.2
Rehabilitation
June 2009 2.4
March 2009 3.2
Financial year ended 11.4
TOTAL PRODUCTION COST (3)
June 2009 962.3
March 2009 1,000.6
Financial year ended 3,957.1
Gold sold - thousand ounces
June 2009 108.9 45.2
March 2009 109.5 49.5
Financial year ended 428.3 192.1
TOTAL CASH COST
June 2009 614 401
- US$/oz
March 2009 538 355
Financial year ended 596 401
TOTAL CASH COST
June 2009 169,097 110,377
- R/kg
March 2009 171,911 113,433
Financial year ended 172,707 116,120
TOTAL PRODUCTION COST
June 2009 729
- US$/oz
March 2009 633
Financial year ended 708
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 were US$1 = R8.56 and US$1 = R9.93
for
the June 2009 and March 2009 quarters respectively. F2009 US$1 = R9.01.
Notional cash expenditure##
South African Operations
Total Mine
Operations Total Driefontein
Operating costs - R`m
June 2009 4,491.9 2,508.3 905.4
March 2009 4,566.5 2,434.2 867.7
Financial year ended 17,833.9 9,839.9 3,530.5
Capital expenditure - R`m
June 2009 1,728.3 1,058.9 311.4
March 2009 1,689.2 889.1 261.6
Financial year ended 7,556.5 3,642.9 1,034.4
June 2009 203,042 216,891 183,529
Notional cash expenditure
- R/kg
March 2009 213,403 206,570 168,729
Financial year ended 221,153 212,629 176,838
June 2009 738 788 667
Notional cash expenditure
- US$/oz
March 2009 668 647 529
Financial year ended 763 734 610
South African Operations
South
Kloof Beatrix Deep Total
Operating costs - R`m
June 2009 762.7 528.2 312.0 1,983.6
March 2009 762.9 507.7 295.9 2,132.3
Financial year ended 3,083.8 2,037.6 1,188.0 7,994.0
Capital expenditure - R`m
June 2009 245.4 190.7 311.4 669.4
March 2009 224.3 138.5 264.7 800.1
Financial year ended 958.6 629.4 1,020.5 3,913.6
June 2009 201,459 224,726 386,245 186,989
Notional cash expenditure
- R/kg
March 2009 182,612 259,622 373,733 221,715
Financial year ended 202,140 219,254 406,423 231,670
June 2009 732 817 1,403 679
Notional cash expenditure
- US$/oz
March 2009 572 813 1,171 694
Financial year ended 698 757 1,403 800
International Operations
Ghana Peru Australia
Cerro
Tarkwa Damang Corona St Ives Agnew
Operating costs -
R`m
June 2009 713.4 267.6 257.0 586.9 158.7
March 2009 811.2 311.9 258.3 591.4 159.5
Financial year ended 3,046.5 1,193.3 778.7 2,301.6 673.9
Capital expenditure
- R`m
June 2009 250.8 50.6 162.6 131.3 74.1
March 2009 364.2 37.3 206.9 114.6 77.1
Financial year ended 1,812.0 152.1 1,052.2 619.9 277.4
June 2009 188,247 191,571 160,766 211,983 165,458
Notional cash
expenditure
- R/kg
March 2009 248,341 213,709 243,433 207,220 153,537
Financial year ended 255,066 215,851 268,382 219,299 159,240
June 2009 684 696 584 770 601
Notional cash
expenditure
- US$/oz
March 2009 778 669 762 649 481
Financial year ended 881 745 926 757 550
## Notional cash expenditure (NCE) per kilogram (ounce) = operating costs plus
capital expenditure divided by gold produced.
Operating and financial results
SOUTH AFRICAN RAND
South African Operations
Total Mine
Operations Total Driefontein
Operating Results
June 2009 13,581 3,625 1,536
Ore milled/treated (000 tons)
March 2009 13,278 3,197 1,537
Financial year ended 52,907 13,768 6,217
Yield (grams per ton)
June 2009 2.3 4.5 4.3
March 2009 2.2 5.0 4.4
Financial year ended 2.2 4.6 4.2
Gold produced (kilograms)
June 2009 30,635 16,447 6,630
March 2009 29,314 16,088 6,693
Financial year ended 114,809 63,410 25,814
Gold sold (kilograms)
June 2009 30,729 16,447 6,630
March 2009 29,435 16,088 6,693
Financial year ended 114,760 63,410 25,814
Gold price received
(Rand per kilogram)
June 2009 253,162 250,860 251,825
March 2009 289,095 289,632 290,976
Financial year ended 253,459 253,359 253,579
Total cash cost
(Rand per kilogram)
June 2009 140,916 145,145 129,397
March 2009 150,301 143,343 122,680
Financial year ended 149,398 147,657 129,837
Notional cash expenditure
(Rand per kilogram)
June 2009 203,042 216,891 183,529
March 2009 213,403 206,570 168,729
Financial year ended 221,153 212,629 176,838
Operating costs (Rand per ton)
June 2009 331 692 589
March 2009 344 761 565
Financial year ended 337 715 568
Financial Results (Rand million)
Revenue
June 2009 7,779.4 4,125.9 1,669.6
March 2009 8,509.5 4,659.6 1,947.5
Financial year ended 29,086.9 16,065.5 6,545.9
Operating costs, net
June 2009 4,441.7 2,508.3 905.4
March 2009 4,523.7 2,434.2 867.7
Financial year ended 17,623.6 9,839.9 3,530.5
- Operating costs
June 2009 4,491.9 2,508.3 905.4
March 2009 4,566.5 2,434.2 867.7
Financial year ended 17,833.9 9,839.9 3,530.5
- Gold inventory change
June 2009 (50.2) - -
March 2009 (42.8) - -
Financial year ended (210.3) - -
Operating profit
June 2009 3,337.7 1,617.6 764.2
March 2009 3,985.8 2,225.4 1,079.8
Financial year ended 11,463.3 6,225.6 3,015.4
Amortisation of mining assets
June 2009 1,033.7 572.7 174.5
March 2009 1,103.5 520.8 167.4
Financial year ended 3,996.7 2,036.0 624.9
Net operating profit
June 2009 2,304.0 1,044.9 589.7
March 2009 2,882.3 1,704.6 912.4
Financial year ended 7,466.6 4,189.6 2,390.5
Other (expenses)/income
June 2009 (163.9) (76.6) (26.2)
March 2009 (268.9) (131.6) (49.8)
Financial year ended (743.9) (380.8) (156.0)
Profit before taxation
June 2009 2,140.1 968.3 563.5
March 2009 2,613.4 1,573.0 862.6
Financial year ended 6,722.7 3,808.8 2,234.5
Mining and income taxation
June 2009 688.6 277.2 175.7
March 2009 954.8 593.7 328.4
Financial year ended 2,397.8 1,333.2 779.6
- Normal taxation
June 2009 378.1 211.8 144.6
March 2009 513.3 464.4 282.2
Financial year ended 1,073.2 858.1 603.2
- Royalties
June 2009 96.3 - -
March 2009 97.6 - -
Financial year ended 339.5 - -
- Deferred taxation
June 2009 214.2 65.4 31.1
March 2009 343.9 129.3 46.2
Financial year ended 985.1 475.1 176.4
Profit before exceptional items
June 2009 1,451.5 691.1 387.8
March 2009 1,658.6 979.3 534.2
Financial year ended 4,324.9 2,475.6 1,454.9
Exceptional items
June 2009 (107.6) (99.4) (36.5)
March 2009 8.7 8.7 1.2
Financial year ended 20.1 29.4 (33.6)
Net profit
June 2009 1,343.9 591.7 351.3
March 2009 1,667.3 988.0 535.4
Financial year ended 4,345.0 2,505.0 1,421.3
June 2009 1,382.0 620.0 357.1
Net profit excluding gains
and losses on
March 2009 1,658.7 977.4 532.0
foreign exchange,
financial instruments and
exceptional items
Financial year ended 4,399.1 2,435.5 1,422.7
Capital expenditure
June 2009 1,728.3 1,058.9 311.4
March 2009 1,689.2 889.1 261.6
Financial year ended 7,556.5 3,642.9 1,034.4
Planned for next
six months to December 2009 4,228.7 2,469.0 671.1
South African Operations
Kloof Beatrix South Deep
Operating Results
June 2009 891 774 424
Ore milled/treated (000 tons)
March 2009 689 629 342
Financial year ended 3,319 2,991 1,241
Yield (grams per ton)
June 2009 5.6 4.1 3.8
March 2009 7.8 4.0 4.4
Financial year ended 6.0 4.1 4.4
Gold produced (kilograms)
June 2009 5,004 3,199 1,614
March 2009 5,406 2,489 1,500
Financial year ended 19,998 12,164 5,434
Gold sold (kilograms)
June 2009 5,004 3,199 1,614
March 2009 5,406 2,489 1,500
Financial year ended 19,998 12,164 5,434
Gold price received
(Rand per kilogram)
June 2009 250,180 250,078 250,558
March 2009 287,939 289,393 290,133
Financial year ended 253,340 251,167 257,287
Total cash cost
(Rand per kilogram)
June 2009 145,284 157,862 184,201
March 2009 133,796 193,532 186,667
Financial year ended 146,930 159,799 207,803
Notional cash expenditure
(Rand per kilogram)
June 2009 201,459 224,726 386,245
March 2009 182,612 259,622 373,733
Financial year ended 202,140 219,254 406,423
Operating costs (Rand per ton)
June 2009 856 682 736
March 2009 1,107 807 865
Financial year ended 929 681 957
Financial Results (Rand million)
Revenue
June 2009 1,251.9 800.0 404.4
March 2009 1,556.6 720.3 435.2
Financial year ended 5,066.3 3,055.2 1,398.1
Operating costs, net
June 2009 762.7 528.2 312.0
March 2009 762.9 507.7 295.9
Financial year ended 3,083.8 2,037.6 1,188.0
- Operating costs
June 2009 762.7 528.2 312.0
March 2009 762.9 507.7 295.9
Financial year ended 3,083.8 2,037.6 1,188.0
- Gold inventory change
June 2009 - - -
March 2009 - - -
Financial year ended - - -
Operating profit
June 2009 489.2 271.8 92.4
March 2009 793.7 212.6 139.3
Financial year ended 1,982.5 1,017.6 210.1
Amortisation of mining assets
June 2009 175.7 124.8 97.7
March 2009 180.4 99.6 73.4
Financial year ended 692.7 435.2 283.2
Net operating profit
June 2009 313.5 147.0 (5.3)
March 2009 613.3 113.0 65.9
Financial year ended 1,289.8 582.4 (73.1)
Other (expenses)/income
June 2009 (21.9) (1.5) (27.0)
March 2009 (50.3) (6.7) (24.8)
Financial year ended (137.8) (24.0) (63.0)
Profit before taxation
June 2009 291.6 145.5 (32.3)
March 2009 563.0 106.3 41.1
Financial year ended 1,152.0 558.4 (136.1)
Mining and income taxation
June 2009 79.0 34.7 (12.2)
March 2009 206.3 43.3 15.7
Financial year ended 363.7 197.1 (7.2)
- Normal taxation
June 2009 66.8 0.4 -
March 2009 182.1 0.1 -
Financial year ended 254.0 0.9 -
- Royalties
June 2009 - - -
March 2009 - - -
Financial year ended - - -
- Deferred taxation
June 2009 12.2 34.3 (12.2)
March 2009 24.2 43.2 15.7
Financial year ended 109.7 196.2 (7.2)
Profit before exceptional items
June 2009 212.6 110.8 (20.1)
March 2009 356.7 63.0 25.4
Financial year ended 788.3 361.3 (128.9)
Exceptional items
June 2009 (23.1) (39.8) -
March 2009 7.6 0.1 (0.2)
Financial year ended (15.5) (39.5) 118.0
Net profit
June 2009 189.5 71.0 (20.1)
March 2009 364.3 63.1 25.2
Financial year ended 772.8 321.8 (10.9)
June 2009 187.1 95.7 (19.9)
Net profit excluding gains
and losses on
March 2009 357.3 63.0 25.1
foreign exchange,
financial instruments and
exceptional items
Financial year ended 763.4 346.3 (96.9)
Capital expenditure
June 2009 245.4 190.7 311.4
March 2009 224.3 138.5 264.7
Financial year ended 958.6 629.4 1,020.5
Planned for next
six months to December 2009 626.2 310.0 861.7
Operating and financial results
SOUTH AFRICAN RAND
International Operations
Ghana
Total Tarkwa Damang
Operating Results
June 2009 9,956 5,166 1,304
Ore milled/treated (000 tons)
March 2009 10,081 5,216 1,334
Financial year ended 39,139 21,273 4,991
Yield (grams per ton)
June 2009 1.4 1.0 1.3
March 2009 1.3 0.9 1.2
Financial year ended 1.3 0.9 1.2
Gold produced (kilograms)
June 2009 14,188 5,122 1,661
March 2009 13,226 4,733 1,634
Financial year ended 51,399 19,048 6,233
Gold sold (kilograms)
June 2009 14,282 5,122 1,661
March 2009 13,347 4,733 1,634
Financial year ended 51,350 19,048 6,233
Gold price received (Rand per kilogram)
June 2009 255,812 255,291 255,268
March 2009 288,447 286,140 285,006
Financial year ended 253,581 254,111 253,923
Total cash cost (Rand per kilogram)
June 2009 136,047 132,390 168,104
March 2009 158,687 160,701 205,263
Financial year ended 151,549 150,814 191,179
Notional cash expenditure
(Rand per kilogram)
June 2009 186,989 188,247 191,571
March 2009 221,715 248,341 213,709
Financial year ended 231,670 255,066 215,851
Operating costs (Rand per ton)
June 2009 199 138 205
March 2009 212 156 234
Financial year ended 204 143 239
Financial Results (Rand million)
Revenue
June 2009 3,653.5 1,307.6 424.0
March 2009 3,849.9 1,354.3 465.7
Financial year ended 13,021.4 4,840.3 1,582.7
Operating costs, net
June 2009 1,933.4 684.5 274.5
March 2009 2,089.5 760.6 313.4
Financial year ended 7,783.7 2,884.0 1,172.5
- Operating costs
June 2009 1,983.6 713.4 267.6
March 2009 2,132.3 811.2 311.9
Financial year ended 7,994.0 3,046.5 1,193.3
- Gold inventory change
June 2009 (50.2) (28.9) 6.9
March 2009 (42.8) (50.6) 1.5
Financial year ended (210.3) (162.5) (20.8)
Operating profit
June 2009 1,720.1 623.1 149.5
March 2009 1,760.4 593.7 152.3
Financial year ended 5,237.7 1,956.3 410.2
Amortisation of mining assets
June 2009 461.0 68.0 52.0
March 2009 582.7 166.8 48.5
Financial year ended 1,960.7 495.3 169.4
Net operating profit
June 2009 1,259.1 555.1 97.5
March 2009 1,177.7 426.9 103.8
Financial year ended 3,277.0 1,461.0 240.8
Other (expenses)/income
June 2009 (87.3) (18.0) (22.5)
March 2009 (137.3) (15.3) (31.7)
Financial year ended (363.1) (128.6) (87.2)
Profit before taxation
June 2009 1,171.8 537.1 75.0
March 2009 1,040.4 411.6 72.1
Financial year ended 2,913.9 1,332.4 153.6
Mining and income taxation
June 2009 411.4 162.4 28.8
March 2009 361.1 130.1 28.6
Financial year ended 1,064.6 431.7 72.2
- Normal taxation
June 2009 166.3 - 20.0
March 2009 48.9 - 7.2
Financial year ended 215.1 - 27.2
- Royalties
June 2009 96.3 39.2 12.7
March 2009 97.6 40.6 14.0
Financial year ended 339.5 145.2 47.5
- Deferred taxation
June 2009 148.8 123.2 (3.9)
March 2009 214.6 89.5 7.4
Financial year ended 510.0 286.5 (2.5)
Profit before exceptional items
June 2009 760.4 374.7 46.2
March 2009 679.3 281.5 43.5
Financial year ended 1,849.3 900.7 81.4
Exceptional items
June 2009 (8.2) - -
March 2009 - - -
Financial year ended (9.3) - -
Net profit
June 2009 752.2 374.7 46.2
March 2009 679.3 281.5 43.5
Financial year ended 1,840.0 900.7 81.4
June 2009 762.0 376.7 52.0
Net profit excludi ng gains and losses on
foreign exchange, financial instruments and
March 2009 681.3 281.5 44.7
exceptional items
Financial year ended 1,936.6 967.0 108.4
Capital expenditure
June 2009 669.4 250.8 50.6
March 2009 800.1 364.2 37.3
Financial year ended 3,913.6 1,812.0 152.1
Planned for next six months to
December 2009 1,759.7 695.2 111.2
International Operations
Peru Australia #
Cerro
Corona St Ives Agnew
Operating Results
June 2009 1,473 1,785 228
Ore milled/treated (000 tons)
March 2009 1,434 1,820 277
Financial year ended 4,547 7,262 1,066
Yield (grams per ton)
June 2009 1.8 1.9 6.2
March 2009 1.3 1.9 5.6
Financial year ended 1.5 1.8 5.6
Gold produced (kilograms)
June 2009 2,610 3,388 1,407
March 2009 1,911 3,407 1,541
Financial year ended 6,822 13,322 5,974
Gold sold (kilograms)
June 2009 2,704 3,388 1,407
March 2009 2,032 3,407 1,541
Financial year ended 6,773 13,322 5,974
Gold price received (Rand per
kilogram)
June 2009 265,385 249,970 254,016
March 2009 288,140 292,838 289,877
Financial year ended 244,559 256,080 256,194
Total cash cost (Rand per kilogram)
June 2009 92,752 169,097 110,377
March 2009 134,757 171,911 113,433
Financial year ended 106,777 172,707 116,120
Notional cash expenditure
(Rand per kilogram)
June 2009 160,766 211,983 165,458
March 2009 243,433 207,220 153,537
Financial year ended 268,382 219,299 159,240
Operating costs (Rand per ton)
June 2009 174 329 696
March 2009 180 325 576
Financial year ended 171 317 632
Financial Results (Rand million)
Revenue
June 2009 717.6 846.9 357.4
March 2009 585.5 997.7 446.7
Financial year ended 1 1,656.4 3,411.5 1,530.5
Operating costs, net
June 2009 250.9 569.2 154.3
March 2009 289.0 556.0 170.5
Financial year ended 741.7 2,291.4 694.1
- Operating costs
June 2009 257.0 586.9 158.7
March 2009 258.3 591.4 159.5
Financial year ended 778.7 2,301.6 673.9
- Gold inventory change
June 2009 (6.1) (17.7) (4.4)
March 2009 30.7 (35.4) 11.0
Financial year ended (37.0) (10.2) 20.2
Operating profit
June 2009 466.7 277.7 203.1
March 2009 296.5 441.7 276.2
Financial year ended 914.7 1,120.1 836.4
Amortisation of mining
assets
June 2009 104.5 236.5
March 2009 124.0 243.4
Financial year ended 350.7 945.3
Net operating profit
June 2009 362.2 244.3
March 2009 172.5 474.5
Financial year ended 564.0 1,011.2
Other (expenses)/income
June 2009 (59.8) 13.0
March 2009 (76.9) (13.4)
Financial year ended (160.1) 12.8
Profit before taxation
June 2009 302.4 257.3
March 2009 95.6 461.1
Financial year ended 403.9 1,024.0
Mining and income taxation
June 2009 134.2 86.0
March 2009 37.2 165.2
Financial year ended 174.9 385.8
- Normal taxation
June 2009 80.4 65.9
March 2009 41.7 -
Financial year ended 122.0 65.9
- Royalties
June 2009 14.3 30.1
March 2009 6.8 36.2
Financial year ended 23.4 123.4
- Deferred taxation
June 2009 39.5 (10.0)
March 2009 (11.3) 129.0
Financial year ended 29.5 196.5
Profit before exceptional
items
June 2009 168.2 171.3
March 2009 58.4 295.9
Financial year ended 229.0 638.2
Exceptional items
June 2009 - (8.2)
March 2009 - -
Financial year ended - (9.3)
Net profit
June 2009 168.2 163.1
March 2009 58.4 295.9
Financial year ended 229.0 628.9
June 2009 168.2 165.1
Net profit excludi ng
gains and losses
on foreign exchange,
financial
instruments and March 2009 58.4 296.7
exceptional items
Financial year ended 229.0 659.2
Capital expenditure
June 2009 162.6 131.3 74.1
March 2009 206.9 114.6 77.1
Financial year ended 1,052.2 619.9 277.4
Planned for next six
months to
December 2009 385.6 369.9 197.8
# As a significant portion of the acquisition price was allocated to tenements
of St Ives and Agnew based on endowment ounces and also as these two
Australian
operations are entitled to transfer and then off-set tax losses from one
company to another, it is not meaningful to split the income statement below
operating profit.
Operating and financial results
UNITED STATES DOLLARS
South African Operations
Total Mine
Operations Total Driefontein
Operating Results
June 2009 13,581 3,625 1,536
Ore milled/treated (000 tons)
March 2009 13,278 3,197 1,537
Financial year ended 52,907 13,768 6,217
Yield (ounces per ton)
June 2009 0.073 0.146 0.139
March 2009 0.071 0.162 0.140
Financial year ended 0.070 0.148 0.133
Gold produced (000 ounces)
June 2009 984.9 528.8 213.2
March 2009 942.5 517.2 215.2
Financial year ended 3,691.2 2,038.7 829.9
Gold sold (000 ounces)
June 2009 988.0 528.8 213.2
March 2009 946.4 517.2 215.2
Financial year ended 3,689.6 2,038.7 829.9
Gold price received
(dollars per ounce)
June 2009 920 912 915
March 2009 906 907 911
Financial year ended 875 875 875
Total cash cost
(dollars per ounce)
June 2009 512 527 470
March 2009 471 449 384
Financial year ended 516 510 448
Notional cash expenditure
(dollars per ounce)
June 2009 738 788 667
March 2009 668 647 529
Financial year ended 763 734 610
Operating costs
(dollars per ton)
June 2009 39 81 69
March 2009 35 77 57
Financial year ended 37 79 63
Financial Results ($ million)
Revenue
June 2009 902.2 479.6 194.1
March 2009 868.5 474.3 198.8
Financial year ended 3,228.3 1,783.1 726.5
Operating costs, net
June 2009 516.9 291.7 105.3
March 2009 453.0 242.6 86.4
Financial year ended 1,956.0 1,092.1 391.8
- Operating costs
June 2009 522.7 291.7 105.3
March 2009 457.1 242.6 86.4
Financial year ended 1,979.3 1,092.1 391.8
- Gold inventory change
June 2009 (5.8) - -
March 2009 (4.1) - -
Financial year ended (23.3) - -
Operating profit
June 2009 385.3 187.9 88.9
March 2009 415.5 231.7 112.4
Financial year ended 1,272.3 691.0 334.7
Amortisation of mining assets #
June 2009 120.1 66.2 20.2
March 2009 111.6 52.4 16.9
Financial year ended 443.6 226.0 69.4
Net operating profit
June 2009 265.0 121.7 68.7
March 2009 304.1 179.3 95.4
Financial year ended 828.7 465.0 265.3
Other (expenses)/income
June 2009 (19.2) (9.0) (3.2)
March 2009 (27.9) (13.6) (5.1)
Financial year ended (82.6) (42.3) (17.3)
Profit before taxation
June 2009 245.8 112.7 65.5
March 2009 276.2 165.7 90.3
Financial year ended 746.1 422.7 248.0
Mining and income taxation
June 2009 79.5 32.6 20.5
March 2009 100.6 62.7 34.5
Financial year ended 266.1 148.0 86.5
- Normal taxation
June 2009 43.2 24.7 16.9
March 2009 55.3 49.9 30.0
Financial year ended 119.1 95.2 66.9
- Royalties
June 2009 11.2 - -
March 2009 9.9 - -
Financial year ended 37.7 - -
- Deferred taxation
June 2009 25.1 7.9 3.7
March 2009 35.4 12.7 4.6
Financial year ended 109.3 52.7 19.6
Profit before exceptional items
June 2009 166.3 80.0 45.0
March 2009 175.6 103.1 55.8
Financial year ended 480.0 274.8 161.5
Exceptional items
June 2009 (11.7) (10.7) (4.0)
March 2009 0.4 0.4 0.1
Financial year ended 2.2 3.3 (3.7)
Net profit
June 2009 154.6 69.3 40.9
March 2009 176.0 103.4 55.9
Financial year ended 482.2 278.0 157.7
June 2009 158.9 72.1 41.6
Net profit excludi ng gains
and losses on
March 2009 174.6 102.7 55.5
foreign exchange,
financial instruments
Financial year ended 488.2 270.3 157.9
and exceptional items
Capital expenditure
June 2009 202.3 122.2 35.9
March 2009 164.8 89.1 26.4
Financial year ended 838.7 404.3 114.8
Planned for next six months to
December 2009 528.6 308.6 83.9
South African Operations
Kloof Beatrix South Deep
Operating Results
June 2009 891 774 424
Ore milled/treated (000 tons)
March 2009 689 629 342
Financial year ended 3,319 2,991 1,241
Yield (ounces per ton)
June 2009 0.181 0.133 0.122
March 2009 0.252 0.127 0.141
Financial year ended 0.194 0.131 0.141
Gold produced (000 ounces)
June 2009 160.9 102.9 51.9
March 2009 173.8 80.0 48.2
Financial year ended 643.0 391.1 174.7
Gold sold (000 ounces)
June 2009 160.9 102.9 51.9
March 2009 173.8 80.0 48.2
Financial year ended 643.0 391.1 174.7
Gold price received
(dollars per ounce)
June 2009 909 909 910
March 2009 902 906 909
Financial year ended 875 867 888
Total cash cost
(dollars per ounce)
June 2009 528 574 669
March 2009 419 606 585
Financial year ended 507 552 717
Notional cash expenditure
(dollars per ounce)
June 2009 732 817 1,403
March 2009 572 813 1,171
Financial year ended 698 757 1,403
Operating costs
(dollars per ton)
June 2009 100 80 86
March 2009 112 81 87
Financial year ended 103 76 106
Financial Results ($ million)
Revenue
June 2009 145.9 92.8 46.7
March 2009 159.2 71.4 44.9
Financial year ended 562.3 339.1 155.2
Operating costs, net
June 2009 88.9 61.3 36.2
March 2009 75.9 50.7 29.6
Financial year ended 342.3 226.1 131.9
- Operating costs
June 2009 88.9 61.3 36.2
March 2009 75.9 50.7 29.6
Financial year ended 342.3 226.1 131.9
- Gold inventory change
June 2009 - - -
March 2009 - - -
Financial year ended - - -
Operating profit
June 2009 57.0 31.5 10.5
March 2009 83.3 20.7 15.3
Financial year ended 220.0 112.9 23.3
Amortisation of mining assets #
June 2009 20.4 14.4 11.2
March 2009 18.1 9.9 7.5
Financial year ended 76.9 48.3 31.4
Net operating profit
June 2009 36.6 17.1 (0.7)
March 2009 65.3 10.8 7.8
Financial year ended 143.2 64.6 (8.1)
Other (expenses)/income
June 2009 (2.6) (0.2) (3.0)
March 2009 (5.2) (0.6) (2.7)
Financial year ended (15.3) (2.7) (7.0)
Profit before taxation
June 2009 34.0 16.9 (3.7)
March 2009 60.1 10.2 5.2
Financial year ended 127.9 62.0 (15.1)
Mining and income taxation
June 2009 9.3 4.2 (1.4)
March 2009 22.2 4.2 1.8
Financial year ended 40.4 21.9 (0.8)
- Normal taxation
June 2009 7.7 0.1 -
March 2009 19.9 - -
Financial year ended 28.2 0.1 -
- Royalties
June 2009 - - -
March 2009 - - -
Financial year ended - - -
- Deferred taxation
June 2009 1.5 4.1 (1.4)
March 2009 2.3 4.1 1.8
Financial year ended 12.2 21.8 (0.8)
Profit before exceptional items
June 2009 24.7 12.6 (2.3)
March 2009 37.9 6.0 3.4
Financial year ended 87.5 40.1 (14.3)
Exceptional items
June 2009 (2.5) (4.4) 0.3
March 2009 0.8 - (0.6)
Financial year ended (1.7) (4.4) 13.1
Net profit
June 2009 22.2 8.2 (2.1)
March 2009 38.7 6.0 2.8
Financial year ended 85.8 35.7 (1.2)
June 2009 21.8 11.1 (2.3)
Net profit excludi ng gains
and losses on
March 2009 38.0 6.0 3.2
foreign exchange,
financial instruments
Financial year ended 84.7 38.4 (10.8)
and exceptional items
Capital expenditure
June 2009 28.5 21.9 35.9
March 2009 22.2 13.7 26.8
Financial year ended 106.4 69.9 113.3
Planned for next six months to
December 2009 78.3 38.8 107.7
Average exchange rates were US$1 = R8.56 and US$1 = R9.93 for the June 2009
and
March 2009 quarters respectively. The Australian dollar exchange rates were
A$1
= R6.46 and A$1 =
R6.59 for the June 2009 and March 2009 quarters respectively.
Operating and financial results
UNITED STATES DOLLARS
International Operations
Ghana Peru
Cerro
Total Tarkwa Damang Corona
Operating Results
June 2009 9,956 5,166 1,304 1,473
Ore milled/treated (000 tons)
March 2009 10,081 5,216 1,334 1,434
Financial year ended 39,139 21,273 4,991 4,547
Yield (ounces per ton)
June 2009 0.046 0.032 0.041 0.057
March 2009 0.042 0.029 0.039 0.043
Financial year ended 0.042 0.029 0.040 0.048
Gold produced(000 ounces)
June 2009 456.2 164.7 53.4 83.9
March 2009 425.2 152.2 52.5 61.4
Financial year ended 1,652.5 612.4 200.4 219.3
Gold sold (000 ounces)
June 2009 459.2 164.7 53.4 86.9
March 2009 429.1 152.2 52.5 65.3
Financial year ended 1,650.9 612.4 200.4 217.8
Gold price received
June 2009 930 928 928 964
(dollars per ounce)
March 2009 903 896 893 903
Financial year ended 875 877 877 844
Total cash cost
June 2009 494 481 611 337
(dollars per ounce)
March 2009 497 503 643 422
Financial year ended 523 521 660 369
Notional cash expenditure
June 2009 679 684 696 584
(dollars per ounce)
March 2009 694 778 669 762
Financial year ended 800 881 745 926
Operating costs
June 2009 23 16 24 20
(dollars per ton)
March 2009 21 16 24 18
Financial year ended 23 16 27 19
Financial Results ($ million)
Revenue
June 2009 422.4 151.5 49.2 81.3
March 2009 394.3 137.6 47.6 62.3
Financial year ended 1,445.2 537.2 175.7 183.8
Operating costs, net
June 2009 225.3 80.0 32.1 28.8
March 2009 210.3 76.2 31.5 30.6
Financial year ended 863.9 320.1 130.1 82.3
- Operating costs
June 2009 231.1 83.4 31.3 29.5
March 2009 214.4 81.3 31.2 26.9
Financial year ended 887.2 338.1 132.4 86.4
- Gold inventory change
June 2009 (5.9) (3.5) 0.7 (0.7)
March 2009 (4.1) (5.1) 0.3 3.6
Financial year ended (23.3) (18.0) (2.3) (4.1)
Operating profit
June 2009 197.2 71.6 17.1 52.5
March 2009 184.0 61.4 16.1 31.7
Financial year ended 581.3 217.1 45.5 101.5
Amortisation of mining assets #
June 2009 53.9 8.3 6.0 12.1
March 2009 59.2 17.0 4.9 12.9
Financial year ended 217.6 55.0 18.8 38.9
Net operating profit
June 2009 143.3 63.3 11.1 40.4
March 2009 124.8 44.4 11.2 18.8
Financial year ended 363.7 162.2 26.7 62.6
Other (expenses)/income
June 2009 (10.1) (2.2) (2.6) (6.8)
March 2009 (14.4) (1.3) (3.3) (8.3)
Financial year ended (40.3) (14.3) (9.7) (17.8)
Profit before taxation
June 2009 133.2 61.1 8.5 33.6
March 2009 110.4 43.1 7.9 10.4
Financial year ended 323.4 147.9 17.0 44.8
Mining and income taxation
June 2009 46.9 18.5 3.2 15.1
March 2009 37.9 13.5 3.0 4.0
Financial year ended 118.2 47.9 8.0 19.4
- Normal taxation
June 2009 18.5 - 2.2 9.1
March 2009 5.4 - 0.9 4.5
Financial year ended 23.9 - 3.0 13.5
- Royalties
June 2009 11.2 4.5 1.5 1.6
March 2009 9.9 4.2 1.3 0.7
Financial year ended 37.7 16.1 5.3 2.6
- Deferred taxation
June 2009 17.2 14.0 (0.4) 4.4
March 2009 22.6 9.4 0.8 (1.3)
Financial year ended 56.6 31.8 (0.3) 3.3
Profit before exceptional items
June 2009 86.3 42.6 5.2 18.5
March 2009 72.5 29.6 4.9 6.5
Financial year ended 205.2 100.0 9.0 25.4
Exceptional items
June 2009 (1.0) - - -
March 2009 0.1 - - -
Financial year ended (0.1) - - -
Net profit
June 2009 85.3 42.6 5.2 18.5
March 2009 72.6 29.6 4.9 6.5
Financial year ended 204.2 100.0 9.0 25.4
Net profit excludi ng gains
and losses on
June 2009 86.8 42.6 5.9 18.7
March 2009 71.9 29.2 4.8 6.4
foreign exchange, financial
instruments
and exceptional items
Financial year ended 217.9 107.3 12.0 25.4
Capital expenditure
June 2009 80.1 30.6 5.8 19.6
March 2009 75.7 34.1 3.8 19.4
Financial year ended 434.4 201.1 16.9 116.8
Planned for next six months to
December 2009 220.0 86.9 13.9 48.2
Australian Dollars
Australia # Australia #
St Ives Agnew St Ives Agnew
Operating Results
June 2009 1,785 228 1,785 228
Ore milled/treated (000 tons)
March 2009 1,820 277 1,820 277
Financial year ended 7,262 1,066 7,262 1,066
Yield (ounces per ton)
June 2009 0.061 0.198 0.061 0.198
March 2009 0.060 0.179 0.060 0.179
Financial year ended 0.059 0.180 0.059 0.180
Gold produced(000 ounces)
June 2009 108.9 45.2 108.9 45.2
March 2009 109.5 49.5 109.5 49.5
Financial year ended 428.3 192.1 428.3 192.1
Gold sold (000 ounces)
June 2009 108.9 45.2 108.9 45.2
March 2009 109.5 49.5 109.5 49.5
Financial year ended 428.3 192.1 428.3 192.1
Gold price received
June 2009 908 923 1,213 1,232
(dollars per ounce)
March 2009 917 908 1,382 1,368
Financial year ended 884 884 1,194 1,195
Total cash cost
June 2009 614 401 814 531
(dollars per ounce)
March 2009 538 355 811 535
Financial year ended 596 401 805 541
Notional cash expenditure
June 2009 770 601 1,021 797
(dollars per ounce)
March 2009 649 481 978 725
Financial year ended 757 550 1,023 743
Operating costs
June 2009 38 81 51 108
(dollars per ton)
March 2009 33 58 49 87
Financial year ended 35 70 48 95
Financial Results ($ million)
Revenue
June 2009 98.7 41.8 131.6 55.6
March 2009 101.5 45.3 150.2 67.3
Financial year ended 378.6 169.9 511.5 229.5
Operating costs, net
June 2009 66.4 18.1 88.3 24.1
March 2009 55.1 16.9 84.2 25.8
Financial year ended 254.3 77.0 343.5 104.1
- Operating costs
June 2009 68.3 18.6 91.0 24.7
March 2009 59.2 15.7 89.4 24.2
Financial year ended 255.4 74.8 345.1 101.0
- Gold inventory change
June 2009 (1.9) (0.5) (2.7) (0.6)
March 2009 (4.1) 1.2 (5.1) 1.6
Financial year ended (1.1) 2.2 (1.5) 3.0
Operating profit
June 2009 32.3 23.7 43.2 31.5
March 2009 46.4 28.4 66.0 41.5
Financial year ended 124.3 92.8 167.9 125.4
Amortisation of mining assets #
June 2009 27.5 36.7
March 2009 24.4 36.8
Financial year ended 104.9 141.7
Net operating profit
June 2009 28.6 38.1
March 2009 50.4 70.7
Financial year ended 112.2 151.6
Other (expenses)/income
June 2009 1.5 1.9
March 2009 (1.5) (1.9)
Financial year ended 1.4 1.9
Profit before taxation
June 2009 30.0 40.0
March 2009 49.0 68.8
Financial year ended 113.7 153.5
Mining and income taxation
June 2009 10.1 13.4
March 2009 17.4 24.7
Financial year ended 42.8 57.8
- Normal taxation
June 2009 7.3 9.8
March 2009 - -
Financial year ended 7.3 9.9
- Royalties
June 2009 3.5 4.6
March 2009 3.7 5.5
Financial year ended 13.7 18.5
- Deferred taxation
June 2009 (0.7) (1.1)
March 2009 13.7 19.2
Financial year ended 21.8 29.5
Profit before exceptional items
June 2009 19.9 26.6
March 2009 31.6 44.1
Financial year ended 70.8 95.7
Exceptional items
June 2009 (1.0) (1.2)
March 2009 0.1 -
Financial year ended (1.0) (1.4)
Net profit
June 2009 19.0 25.4
March 2009 31.6 44.1
Financial year ended 69.8 94.3
Net profit excludi ng gains
and losses on
June 2009 19.3 25.6
March 2009 31.4 44.3
foreign exchange, financial
instruments
and exceptional items
Financial year ended 73.2 98.8
Capital expenditure
June 2009 15.5 8.6 20.6 11.5
March 2009 10.7 7.8 17.5 11.6
Financial year ended 68.8 30.8 92.9 41.6
Planned for next six months to
December 2009 46.2 24.7 57.8 30.9
# 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
Operating Results
South African Operations
Total Mine
Operations Total Driefontein Kloof
Ore milled / treated
(000 ton)
- underground
June 2009 3,054 2,519 794 638
March 2009 2,889 2,357 868 543
Financial year ended 11,541 9,564 3,137 2,398
- surface
June 2009 10,527 1,106 742 253
March 2009 10,389 840 669 146
Financial year ended 41,366 4,204 3,080 921
- total
June 2009 13,581 3,625 1,536 891
March 2009 13,278 3,197 1,537 689
Financial year ended 52,907 13,768 6,217 3,319
Yield (grams per ton)
- underground
June 2009 6.0 6.1 7.6 7.4
March 2009 6.4 6.6 7.1 9.8
Financial year ended 6.2 6.3 7.5 8.1
- surface
June 2009 1.2 0.9 0.8 1.0
March 2009 1.1 0.8 0.8 0.6
Financial year ended 1.0 0.7 0.7 0.7
- combined
June 2009 2.3 4.5 4.3 5.6
March 2009 2.2 5.0 4.4 7.8
Financial year ended 2.2 4.6 4.2 6.0
Gold produced (kilograms)
- underground
June 2009 18,345 15,478 6,015 4,753
March 2009 18,388 15,456 6,179 5,317
Financial year ended 71,547 60,316 23,658 19,316
- surface
June 2009 12,290 969 615 251
March 2009 10,926 632 514 89
Financial year ended 43,262 3,094 2,156 682
- total
June 2009 30,635 16,447 6,630 5,004
March 2009 29,314 16,088 6,693 5,406
Financial year ended 114,809 63,410 25,814 19,998
Operating costs
(Rand per ton)
- underground
June 2009 930 963 1,059 1,178
March 2009 950 1,000 928 1,380
Financial year ended 959 993 1,044 1,254
- surface
June 2009 157 74 87 45
March 2009 175 92 93 92
Financial year ended 164 82 83 84
- total
June 2009 331 692 589 856
March 2009 344 761 565 1,107
Financial year ended 337 715 568 929
South African Operations
South
Beatrix Deep # Total
Ore milled / treated
(000 ton)
- underground
June 2009 774 313 535
March 2009 629 317 532
Financial year ended 2,991 1,038 1,977
- surface
June 2009 - 111 9,421
March 2009 - 25 9,549
Financial year ended - 203 37,162
- total
June 2009 774 424 9,956
March 2009 629 342 10,081
Financial year ended 2,991 1,241 39,139
Yield (grams per ton)
- underground
June 2009 4.1 6.7 5.4
March 2009 4.0 5.7 5.5
Financial year ended 4.1 6.1 5.7
- surface
June 2009 - 0.9 1.2
March 2009 - 1.2 1.1
Financial year ended - 1.3 1.1
- combined
June 2009 4.1 3.8 1.4
March 2009 4.0 4.4 1.3
Financial year ended 4.1 4.4 1.3
Gold produced (kilograms)
- underground
June 2009 3,199 1,511 2,867
March 2009 2,489 1,471 2,932
Financial year ended 12,164 5,178 11,231
- surface
June 2009 - 103 11,321
March 2009 - 29 10,294
Financial year ended - 256 40,168
- total
June 2009 3,199 1,614 14,188
March 2009 2,489 1,500 13,226
Financial year ended 12,164 5,434 51,399
Operating costs
(Rand per ton)
- underground
June 2009 682 979 773
March 2009 807 929 728
Financial year ended 681 1,134 796
- surface
June 2009 - 51 167
March 2009 - 56 183
Financial year ended - 53 173
- total
June 2009 682 736 199
March 2009 807 865 212
Financial year ended 681 957 204
International Operations
Ghana Peru
Cerro
Tarkwa Damang Corona
Ore milled / treated
(000 ton)
- underground
June 2009 - - -
March 2009 - - -
Financial year ended - - -
- surface
June 2009 5,166 1,304 1,473
March 2009 5,216 1,334 1,434
Financial year ended 21,273 4,991 4,547
- total
June 2009 5,166 1,304 1,473
March 2009 5,216 1,334 1,434
Financial year ended 21,273 4,991 4,547
Yield (grams per ton)
- underground
June 2009 - - -
March 2009 - - -
Financial year ended - - -
- surface
June 2009 1.0 1.3 1.8
March 2009 0.9 1.2 1.3
Financial year ended 0.9 1.2 1.5
- combined
June 2009 1.0 1.3 1.8
March 2009 0.9 1.2 1.3
Financial year ended 0.9 1.2 1.5
Gold produced (kilograms)
- underground
June 2009 - - -
March 2009 - - -
Financial year ended - - -
- surface
June 2009 5,122 1,661 2,610
March 2009 4,733 1,634 1,911
Financial year ended 19,048 6,233 6,822
- total
June 2009 5,122 1,661 2,610
March 2009 4,733 1,634 1,911
Financial year ended 19,048 6,233 6,822
Operating costs
(Rand per ton)
- underground
June 2009 - - -
March 2009 - - -
Financial year ended - - -
- surface
June 2009 138 205 174
March 2009 156 234 180
Financial year ended 143 239 171
- total
June 2009 138 205 174
March 2009 156 234 180
Financial year ended 143 239 171
International Operations
Australia
St Ives Agnew
Ore milled / treated
(000 ton)
- underground
June 2009 326 209
March 2009 322 210
Financial year ended 1,222 755
- surface
June 2009 1,459 19
March 2009 1,498 67
Financial year ended 6,040 311
- total
June 2009 1,785 228
March 2009 1,820 277
Financial year ended 7,262 1,066
Yield (grams per ton)
- underground
June 2009 4.5 6.7
March 2009 4.5 7.1
Financial year ended 4.6 7.4
- surface
June 2009 1.3 0.6
March 2009 1.3 0.8
Financial year ended 1.3 1.2
- combined
June 2009 1.9 6.2
March 2009 1.9 5.6
Financial year ended 1.8 5.6
Gold produced (kilograms)
- underground
June 2009 1,471 1,396
March 2009 1,446 1,486
Financial year ended 5,639 5,592
- surface
June 2009 1,917 11
March 2009 1,961 55
Financial year ended 7,683 382
- total
June 2009 3,388 1,407
March 2009 3,407 1,541
Financial year ended 13,322 5,974
Operating costs
(Rand per ton)
- underground
June 2009 791 744
March 2009 773 660
Financial year ended 805 780
- surface
June 2009 225 163
March 2009 229 310
Financial year ended 218 273
- total
June 2009 329 696
March 2009 325 576
Financial year ended 317 632
# June quarter includes 87,000 tons (March quarter 62,000 tons and F2009
194,000 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
Figures are Rand million
South African Operations
Total Mine
Operations Total Driefontein Kloof
Sustaining
June 2009 1,287.9 721.2 285.1 245.4
capital
March 2009 1,333.3 599.8 237.0 224.3
Financial year ended 5,017.4 2,551.1 963.1 958.6
Project capital
June 2009 311.4 311.4 - -
March 2009 264.7 264.7 - -
Financial year ended 2,162.5 1,020.5 - -
Urani um capital
June 2009 26.3 26.3 26.3 -
March 2009 24.6 24.6 24.6 -
Financial year ended 71.3 71.3 71.3 -
Brownfields
June 2009 102.7 - - -
exploration
March 2009 66.6 - - -
Financial year ended 305.3 - - -
Total capital
June 2009 1,728.3 1,058.9 311.4 245.4
expenditure
March 2009 1,689.2 889.1 261.6 224.3
Financial year ended 7,556.5 3,642.9 1,034.4 958.6
South African Operations
South
Beatrix Deep Total
Sustaining
June 2009 190.7 - 566.7
capital
March 2009 138.5 - 733.5
Financial year ended 629.4 - 2,466.3
Project capital
June 2009 - 311.4 -
March 2009 - 264.7 -
Financial year ended - 1,020.5 1,142.0
Urani um capital
June 2009 - - -
March 2009 - - -
Financial year ended - - -
Brownfields
June 2009 - - 102.7
exploration
March 2009 - - 66.6
Financial year ended - - 305.3
Total capital
June 2009 190.7 311.4 669.4
expenditure
March 2009 138.5 264.7 800.1
Financial year ended 629.4 1,020.5 3,913.6
International Operations
Ghana Peru
Cerro
Tarkwa Damang Corona
Sustaining
June 2009 250.8 41.8 162.6
capital
March 2009 364.2 30.0 206.9
Financial year ended 1,208.7 124.9 513.5
Project capital
June 2009 - - -
March 2009 - - -
Financial year ended 603.3 - 538.7
Urani um capital
June 2009 - - -
March 2009 - - -
Financial year ended - - -
Brownfields
June 2009 - 8.8 -
exploration
March 2009 - 7.3 -
Financial year ended - 27.2 -
Total capital
June 2009 250.8 50.6 162.6
expenditure
March 2009 364.2 37.3 206.9
Financial year ended 1,812.0 152.1 1,052.2
International Operations
Australia
St Ives Agnew
Sustaining
June 2009 67.4 44.1
capital
March 2009 83.1 49.3
Financial year ended 443.7 175.5
Project capital
June 2009 - -
March 2009 - -
Financial year ended - -
Urani um capital
June 2009 - -
March 2009 - -
Financial year ended - -
Brownfields
June 2009 63.9 30.0
exploration
March 2009 31.5 27.8
Financial year ended 176.2 101.9
Total capital
June 2009 131.3 74.1
expenditure
March 2009 114.6 77.1
Financial year ended 619.9 277.4
Development results
Development values represent the actual results of sampling and no allowance
has been made for any adjustments which may be necessary when estimating ore
reserves. All figures below exclude shaft sinking metres.
Driefontein June 2009 quarter
Carbon
Reef Leader # Main # VCR
Advanced (m) 3,955 1,145 1,687
Advanced on reef (m) 907 332 158
Sampled (m) 951 252 132
Channel width (cm) 76 104 85
Average value - (g/t) 16.7 5.0 12.7
- (cm.g/t) 1,264 519 1,089
March 2009 quarter
Carbon
Reef Leader Main
VCR
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) 1,159 429 176
1
F2009
Carbon
Reef Leader Main VCR
Advanced (m) 10,260 4,033 5,781
Advanced on reef (m) 2,128 1,472 520
Sampled (m) 1,926 1,239 375
Channel width (cm) 62 63 58
Average value - (g/t) 20.2 7.7 12.7
- (cm.g/t) 1,248 481 738
Kloof June 2009 quarter
Reef Kloof Main VCR
Advanced (m) 44 1,150 4,549
Advanced on reef (m) 42 159 713
Sampled (m) 30 207 513
Channel width (cm) 158 130 129
Average value - (g/t) 11.6 7.6 17.9
- (cm.g/t) 1,828 985 2,320
Kloof March 2009 quarter
Reef Kloof Main VCR
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 F2009
Reef Kloof Main VCR
Advanced (m) 399 3,514 18,925
Advanced on reef (m) 212 838 2,678
Sampled (m) 207 876 2,296
Channel width (cm) 180 117 127
Average value - (g/t) 4.7 6.6 17.7
- (cm.g/t) 854 780 2,241
Beatrix June 2009 quarter
Reef Beatrix Kalkoenkrans
Advanced (m) 6,263 1,802
Advanced on reef (m) 1,169 316
Sampled (m) 1,566 300
Channel width (cm) 111 100
Average value - (g/t) 7.5 26.7
- (cm.g/t) 838 2,665
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 F2009
Reef Beatrix Kalkoenkrans
Advanced (m) 24,553 8,077
Advanced on reef (m) 5,816 862
Sampled (m) 6,111 780
Channel width (cm) 103 138
Average value - (g/t) 7.3 18.8
- (cm.g/t) 755 2,593
South Deep June 2009 quarter March 2009 quarter F2009
Reef Elsburgs Elsburgs 2,3 Elsburgs
Advanced (m) 2,091 1,592 7,152
Advanced on reef (m) 905 855 4,262
Average value - (g/t) 6.9 6.4 5.9
# The Carbon Leader development is currently traversing lower grade areas at
1 shaft and 5 shaft. In addition, ore reserve development in the Main Reef is
done primarily as secondary prospecting at 8 shaft.
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 b y 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 SW 1A 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
Directors
A J Wright (Chairman)
N J Holland* (Chief Executive Officer)
K A nsah#
C A Carolus
* British
** Peruvian
R D aA+/-ino** D M J Ncube
J G Hopwood R L Pennant-Rea *
R P Menell C I von Christierson
D N Murray G M W ilson
# Ghanaian Non-independent Director
Independent Director
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
nikki.catrakilis-wagner@goldfields.co.za
e-mail:
Media Enquiries
Julian Gwillim
Mobile: (+27)(0) 82 452 4389
e-mail: julian.gwillim@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 abilit y 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; availabilit y 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 publicl y 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.
Date: 06/08/2009 08:00:03 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
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