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GFI
GOGOF
GFI - Gold Fields Limited - Q3 F2010 third quarter 31 March 2010
Gold Fields Limited
Incorporated in the Republic of South Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN - ZAE000018123
Q3 F2010 THIRD QUARTER 31 MARCH 2010
Production and earnings decline due to seasonal Christmas break in South Africa
JOHANNESBURG. 7 May 2010, Gold Fields Limited (NYSE & JSE: GFI) today
announced net earnings for the March 2010 quarter of R316 million compared with
earnings of R1,409 million and R1,307 million in the December 2009 and the
March 2009 quarters respectively. In US dollar terms net earnings for the March
2010 quarter were US$44 million, compared with US$187 million and US$140
million for the December 2009 and March 2009 quarters respectively.
March 2010 quarter salient features:
Attributable gold production of 793,000 ounces;
Strong performance at the international operations with a 6 per cent increase
in production;
Net cash inflow of R1 billion despite lower production;
South Deep ventilation shaft deepening commenced;
Total cash cost up 15 per cent from R147,648 per kilogram (US$613 per ounce)
to R169,538 per kilogram(US$703 per ounce);
Notional cash expenditure up 12 per cent from R216,830 per kilogram (US$900
per ounce) to R241,860 per kilogram (US$1,003 per ounce).
Damang`s secondary crusher successfully commissioned on time and within budget.
Statement by Nick Holland, Chief Executive Officer of Gold Fields:
I deeply regret to report that the South Africa region reported three fatal
accidents during Q3 F2010. We remain singularly focused on eliminating all
serious and fatal accidents on all of our mines and our deliberate efforts
towards this goal continue unabated. One of the most important safety
initiatives is the set of measures we are putting in place to counteract the
impact of seismicity. These initiatives are showing early promise.
Our improved performance in the management of safety generally,
combined with positive engagement and cooperation with the Safety
Inspectorate of the Department of Mineral Resources has resulted in
reduced safety stoppages. We will continue to work closely with the
Department to improve our safety.
Attributable gold production of 793koz was achieved during Q3, which is broadly
in line with the revised guidance issued on 26 March 2010. The decrease in
production this quarter was due to the customary Christmas break in South
Africa, accelerated maintenance at Kloof Main shaft and safety related
stoppages late in the December quarter which reduced opening inventories of
available ore early in the March quarter. I am pleased to report that
production at all of the South African mines has since improved and we expect
that increase to be sustained in Q4.
The seasonal decline in South Africa was partially offset by a 6 per cent
increase in the combined attributable production of the international regions
to 398koz, which reflects the improved outlook for our operations in West
Africa, Australasia and South America.
Overall, we expect Group production during Q4 to approach the level achieved in
the December 2009 quarter.
In the West Africa region, Tarkwa continues to gain momentum after
resolving commissioning issues relating to the newly expanded CIL plant
and is expected to increase production during Q4 F2010. At Damang, the
new secondary crusher is in the process of being commissioned which
should positively impact on the recovered grades and lead to an increase in
production levels over the next few quarters.
In the Australasia region, the strategy to address the grade gap at St. Ives
had positive results, with blended recovered grades from all sources on the
mine improving by 24 per cent to 2.1 grams per ton, resulting in a 12 per cent
increase in production. Indications are that this trend is being maintained
into Q4 F2010. Agnew saw a 13 per cent decline in production due to lower
underground tons associated with complex ground conditions which are expected
to be of a short term nature. Production levels are expected to be similar in
Q4 F2010. Production should improve in F2011 once additional areas are opened
up by this underground mine.
In the South America region, Cerro Corona had an outstanding quarter with a 13
per cent increase in gold equivalent ounces produced. This increase was mainly
as a result of higher gold and copper grades during the quarter.
On the growth front significant progress was made during the quarter. On- mine
exploration at St Ives` Argo-Athena camp, Agnew`s Kim and Main Lode`s and
Damang`s Greater Damang and Amoanda North project areas continue to deliver
excellent results and we expect to post increases in the reserves of all three
of these mines in our next reserve declaration.
At St Ives, the construction of the new Athena underground mine, which is part
of the new Argo-Athena Camp referred to above, is on track to produce its first
ore in the first quarter of 2011 and reach full production early in F2012. It
is estimated that this new mine, which could see St Ives producing in excess of
450koz per annum, will add incremental production of up to 100koz per annum.
Feasibility studies of the new Hamlet mine in the same camp are underway.
At the Chucapaca project in Peru, results continue to be positive and the
interim scoping study should be completed during Q4 F2010. At Cerro Corona the
feasibility stud y on the exploitation of the oxide stockpiles is progressing
rapidly and is expected to be completed by June 2010. This project will enable
us to recover an additional 300koz of gold over the next three to five years.
An expansion study is also underway at Cerro Corona and this could yield a
further modular expansion of production by up to 20 per cent. This study is
expected to be completed by December 2010.
Exploration at the Yanfolila project in Mali continues to deliver promising
results and our work has outlined possible extensions to the Komana East
target. We anticipate completing the scoping study on the Komana East and West
targets of this large property by the end of December 2010.
At South Deep, the capital development programme remains on track for this mine
to achieve its target of building up to between 750koz and 800koz by the end of
2014. During the quarter we commenced with the deepening of the ventilation
shaft, which is a critical milestone in the development of this project. We
have also commenced partial hoisting through the newly renovated South shaft.
Currently, approximately 60,000 tons of hoisting capacity is available which
will assist in the production build up from South Deep. Further increases in
this capacity to 120,000 tons will be available post planned rehabilitation
over the next three years.
Stock data
Number of shares in issue
- at end March 2010 705,734,298
- average for the quarter 705,524,513
Free Float 100%
ADR Ratio 1:1
Bloomberg / Reuters GFISJ / GFLJ.J
JSE Limited - (GFI)
Range - Quarter ZAR83.30 - ZAR101.70
Average Volume - Quarter 2,622,004 shares / day
NYSE - (GFI)
Range - Quarter US$11.08 - US$13.89
Average Volume - Quarter 5,918,834 shares / day
SOUTH AFRICAN RAND
Salient features
Nine months to Quarter
March March March
2009 2010 2009
Gold produced* 78,015 80,836 27,105
Total cash cost 152,500 154,303 150,301
Notional cash expenditure 227,745 221,417 213,403
Tons milled 39,326 41,839 13,278
Revenue 253,567 256,533 289,095
Operating costs 339 336 344
Operating profit 8,126 8,835 3,986
Operating margin 38 39 47
1,829 2,732 1,307
Net earnings
275 387 195
2,035 2,125 1,512
Headline earnings
305 301 225
2,032 1,967 1,369
Net earnings excluding gains
and losses on foreign
exchange, financial
instruments, exceptional 305 279 204
items and share of
profit/(loss) of associates
after taxation
Salient features
Quarter
Dec March
2009 2010
Gold produced* 27,981 24,690 kg
Total cash cost 147,648 169,538 R/kg
Notional cash expenditure 216,830 241,860 R/kg
Tons milled 14,017 14,263 000
Revenue 263,828 265,641 R/kg
Operating costs 333 334 R/ton
Operating profit 3,478 2,570 Rm
Operating margin 43 35 %
1,409 316 Rm
Net earnings 200 44 SA c.p.s.
1,381 292 Rm
Headline earnings
196 41 SA c.p.s.
1,022 320 Rm
Net earnings excluding gains
and losses on foreign
exchange, financial
instruments, exceptional
145 45 SA c.p.s.
items and share of
profit/(loss) of associates
after taxation
UNITED STATES DOLLARS
Salient features
Quarter
March Dec
2010 2009
Gold produced* oz (000) 793 900
Total cash cost $/oz 703 613
Notional cash expenditure $/oz 1,003 900
Tons milled 000 14,263 14,017
Revenue $/oz 1,102 1,096
Operating costs $/ton 44 44
Operating profit $m 344 463
Operating margin % 35 43
$m 44 187
Net earnings
US c.p.s. 6 27
$m 40 182
Headline earnings
US c.p.s. 6 26
$m 44 135
Net earnings excluding gains
and losses on foreign
exchange, financial
instruments, exceptional US c.p.s. 6 20
items and share of
profit/(loss) of associates
after taxation
Salient features
Quarter Nine months
to
March March March
2009 2010 2009
Gold produced* 871 2,599 2,508
Total cash cost 471 631 518
Notional cash expenditure 668 906 773
Tons milled 13,278 41,839 39,326
Revenue 906 1,050 861
Operating costs 35 44 37
Operating profit 416 1,163 887
Operating margin 47 39 38
140 360 200
Net earnings
21 51 30
163 280 222
Headline earnings
24 40 33
146 259 222
Net earnings excluding gains
and losses on foreign
exchange, financial
instruments, exceptional 21 37 33
items and share of
profit/(loss) of associates
after taxation
* All salient features given above are managed figures except for gold produced
which is attributable equivalent production.
All companies are wholly owned except for Ghana (71.1%) and Cerro Corona
(80.7%).
Gold produced (and sales) throughout this report includes copper gold
equivalents of approximately 8%.
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 b y 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 and unplanned maintenance 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 three fatal accidents occurred at the South African
operations during the March quarter. An accident occurred at each of Kloof,
Driefontein and Beatrix. All of the accidents were related to gravity falls of
ground.
The Group`s fatal injury frequency rate improved from 0.14 for the December
quarter to 0.08 for the March quarter. The lost time injury frequency rate
regressed from 4.11 to 4.16. The serious injury frequency rate improved from
2.33 to 2.30 while the days lost injury frequency rate regressed from 178 to
185. Year to date the fatal frequency rate when compared with the same period
last year is similar at 0.12, while all the other safety rates have improved
year on year. The lost time injury frequency rate improved from 4.63 to 4.14,
the serious injury frequency rate improved from 2.68 to 2.22, and the days lost
injury frequency rate improved from 189 to 179.
Safe production remains our number one priority and is pursued through the
rollout of the Gold Fields Safe Production Rules and through the application of
our principal value "if we cannot mine safely, we will not mine". These Safe
Production Rules are further fortified by a leadership measurement programme
whereby declining performance is addressed through specialised leadership
counselling. This is integrated into leadership programmes which are being
rolled out across our operations in order to improve safety. Continued
attention is also being paid to management systems and procedures and such
systems are further strengthened through major drives on fall of ground
prevention, seismic risk reduction and good housekeeping practices.
Measures introduced to reduce the incidence of both gravity related and seismic
falls of ground, focus on centralised blasting, face shape monitoring and
pre-conditioning of all high stress mining areas.
Safety improvement practices at all operations are continuing with the `stop,
think, fix, verify and continue" philosophy.
Financial review
Quarter ended 31 March 2010 compared with
quarter ended 31 December 2009
Revenue
Attributable gold production for the March 2010 quarter amounted to 793,000
ounces compared with 900,000 ounces in the December quarter. At the South
African operations, production decreased from 523,000 ounces to 395,000 ounces
due to the impact of the Christmas break and accelerated maintenance at Kloof
mine. Attributable gold production at the West African operations increased by
4 per cent from 155,000 ounces to 161,000 ounces. Attributable equivalent gold
production at the South American operation increased by 13 per cent from 79,000
ounces to 89,000 ounces. At the Australian operations, gold production
increased by 3 per cent from 143,000 ounces to 148,000 ounces.
At the South African operations, gold production in the March quarter at South
Deep decreased from 72,000 ounces to 58,000 ounces due to the Christmas break.
At Beatrix, gold production was 22 per cent lower at 83,000 ounces again due to
the effect of the Christmas break, which negatively impacted all the South
African operations. Gold production at Kloof was 32 per cent lower at 108,000
ounces following a decision to accelerate the replacement of a water pump
column at Main shaft. At Driefontein, gold production at 147,000 ounces was 21
per cent lower than the previous quarter due to safety related stoppages late
in the December quarter, which reduced opening inventories of available ore
in the March quarter.
At the West African operations, managed gold production at Tarkwa was similar
to the previous quarter. At Damang, gold production increased by 20 per cent to
54,000 ounces due to an increase in mill throughput, as in the previous quarter
the plant underwent a 13 day maintenance shutdown.
In South America, Cerro Corona produced 110,200 equivalent ounces and sold
110,700 equivalent ounces, which is 12 per cent and 11 per cent higher than the
previous quarter respectively. Equivalent gold production increased due to a 9
per cent increase in concentrate production and increased yields.
At the Australian operations, Agnew`s gold production decreased by 13 per cent
due to restricted stope access due to localised poor ground conditions
resulting in reduced underground ore processed. At St Ives, gold production
increased by 12 per cent mainly due to higher grades at all the underground
mines.
The average quarterly US dollar gold price achieved increased from US$1,096 per
ounce in the December quarter to US$1,102 per ounce in the March quarter. The
average rand/US dollar exchange rate at R7.50 was similar to the December
quarter, as was the Australian dollar at R6.76. The rand gold price increased
from R263,828 per kilogram to R265,641 per kilogram. The Australian dollar gold
price increased from A$1,208 per ounce to A$1,219 per ounce.
Revenue decreased from R8,067 million (US$1,076 million) in the December
quarter to R7,280 million (US$971 million) in the March quarter due to the
lower production.
Operating costs
Net operating costs increased from R4,589 million (US$613 million) in the
December quarter to R4,710 million (US$628 million) in the March quarter. Total
cash cost increased by 15 per cent from R147,648 per kilogram (US$613 per
ounce) in the December quarter to R169,538 per kilogram (US$703 per ounce) in
the March quarter, mainly as a result of lower production in the March quarter.
At the South African operations, operating costs decreased by 2 per cent from
R2,798 million (US$374 million) to R2,733 million (US$364 million). This
decrease was mainly due to a decrease in consumable costs at all the operations
in line with the lower production and ongoing cost saving initiatives. This was
partially offset by an increase at South Deep in line with the planned project
build-up. Total cash cost at the South African operations increased by 29 per
cent from R165,707 per kilogram (US$688 per ounce) to R214,467 per kilogram
(US$889 per ounce).
At the West African operations, operating costs including gold-in- process
movements increased by 19 per cent from US$110 million (R824 million) in the
December quarter to US$131 million (R987 million) in the March quarter. Tarkwa
increased by US$14 million mainly due to an increase in waste tons mined to
improve flexibility, increased fuel costs and the increase in processing costs
associated with the introduction of the HPGR (high pressure grinding roller)
project. Damang increased by US$7 million mainly due to lower milling activity
in the previous quarter and the milling of the stockpile built up last quarter
due to the plant downtime while rebuilding the SAG mill. Total cash cost at the
West African operations increased from US$524 per ounce in the December quarter
to US$589 per ounce in the March quarter.
At Cerro Corona in South America, operating costs including gold- in-process
movements decreased from US$37 million (R277 million) to US$34 million (R254
million). This decrease was mainly due to lower plant maintenance costs. Total
cash cost at Cerro Corona decreased from US$378 per ounce in the December
quarter to US$303 per ounce in the March quarter.
At the Australian operations, operating costs including gold-in- process
movements increased from A$101 million (R690 million) to A$109 million (R736
million). At St Ives, costs increased by A$6 million (R34 million) mainly due
to increased deferred waste charges and increased grade control drilling to
increase the level of grade accuracy thereby reducing dilution. At Agnew, the
increase in costs is mainly due to rehabilitation of localised poor ground
conditions in current mining areas at Kim South. Total cash cost increased by 7
per cent from US$637 per ounce (A$703 per ounce) to US$681 per ounce (A$755 per
ounce).
Notional cash expenditure (NCE)
Notional cash expenditure is defined as operating costs (including general and
administration) 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 24 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 March quarter amounted to R241,860 per kilogram
(US$1,003 per ounce) compared with R216,830 per kilogram (US$900 per ounce) in
the December quarter, mainly due to the decreased production at the South
African operations and the increase in operating costs at the West African and
Australian operations.
At the South African operations, the NCE increased from R242,050 per kilogram
(US$1,005 per ounce) in the December quarter to R310,490 per kilogram (US$1,288
per ounce) in the March quarter. At the West African operations, the NCE
increased from US$741 per ounce to US$783 per ounce. At the South American
operation, NCE decreased by 14 per cent from US$617 per ounce in the December
quarter to US$532 per ounce in the March quarter. NCE at the Australian
operations decreased from US$956 per ounce (A$1,053 per ounce) in the December
quarter to US$931 per ounce (A$1,033 per ounce) in the March quarter.
Operating margin
The net effect of the changes in revenue and costs, after taking into account
gold-in-process movements, was a 26 per cent decrease in operating profit from
R3,478 million (US$463 million) in the December quarter to R2,570 million
(US$344 million) in the March quarter. The Group operating margin was 35 per
cent compared with 43 per cent in the December quarter. The margin at the South
African operations decreased from 35 per cent to 17 per cent. At the West
African operations the margin decreased from 54 per cent to 48 per cent. At
Cerro Corona in South America the margin increased from 66 per cent to 71 per
cent, while at the Australian operations the margin decreased from 41 per cent
to 40 per cent.
Amortisation
Amortisation decreased from R1,156 million (US$154 million) in the December
quarter to R1,139 million (US$152 million) in the March quarter. At the South
African operations amortisation decreased from R613 million (US$82 million) to
R536 million (US$72 million). This was mainly due to the decrease in
production at all the operations. At the West African operations, amortisation
was similar at US$31 million (R234 million). At South America, amortisation
increased from US$13 million (R98 million) to US$14 million (R103 million) due
to the increase in production. At the Australian operations, amortisation
increased from US$24 million (R181 million) to US$31 million (R232 million)
mainly due to more ounces mined from the more expensive underground mines at St
Ives.
Other
Net interest paid of R45 million (US$6 million) was incurred in the March
quarter compared with net interest paid of R23 million (US$3 million) in the
December quarter. In the March quarter interest paid of R140 million (US$19
million) was partly offset by interest received of R70 million (US$10 million)
and interest capitalised of R25 million (US$3 million). The increase in
interest paid this quarter was due to an increase in South African debt which
carries a higher average interest rate than international debt. This compares
with interest paid of R121 million (US$16 million) partly offset by interest
received of R78 million (US$10 million) and interest capitalised of R20 million
(US$3 million) in the December quarter.
The share of profit of associates after taxation of R4 million (US$1 million)
in the March quarter compares with a profit of R44 million (US$6 million) in
the December quarter. The profit of R4 million (US$1 million) relates to equity
accounted profits realised by Rand Refinery. The profit in the December quarter
relates to equity accounted profits realised by Rand Refinery of R45 million
(US$6 million) partly offset by equity accounted losses incurred at Rusoro of
R1 million.
The loss on foreign exchange of R16 million (US$2 million) in the March quarter
compares with a gain of R8 million (US$1 million) in the December quarter. The
loss in the March quarter and the gain in the December quarter mainly related
to exchange differences on the conversion of offshore cash holdings into their
functional currency.
The loss on financial instruments of R25 million (US$3 million) in the March
quarter compares with a loss of R55 million (US$8 million) in the December
quarter. The loss in the March quarter includes realised and unrealised losses
of R18 million (US$2 million) on the Cerro Corona copper financial instruments
and a R7 million (US$1 million) loss on US$/ZAR forward cover contracts taken
out. Refer to page 18 of this report for more detail. The loss in the December
quarter included realised losses and unrealised losses of R57 million (US$8
million) on the Cerro Corona copper financial instruments, partially offset by
a R2 million (US$nil million) gain on US$/ZAR forward cover contracts taken out
during the December quarter.
Share based payments were similar to the previous quarter at R121 million
(US$16 million).
Other costs increased from R25 million (US$3 million) in the December quarter
to R96 million (US$13 million) in the March quarter. This increase was mainly
due to increased expenditure on research and development into improved mining
methodologies and reduced income from external training.
Exploration
Exploration expenditure decreased from R168 million (US$22 million) in the
December quarter to R127 million (US$17 million) in the March quarter due to
timing of expenditure. Refer to the Exploration and Corporate Development
section of this report for more detail.
Exceptional items
The exceptional gain in the March quarter of R22 million (US$4 million) was
mainly as a result of profit on the disposal of 1,400,000 of the top-up
Eldorado shares. The exceptional gain in the December quarter of R432 million
(US$58 million) was mainly as a result of Gold Fields receiving an additional
4,057,762 Eldorado shares valued at R402 million (US$54 million), which were
received as a result of Gold Fields exercising its top-up right in Eldorado
Gold Corporation due to the completion of an agreement between Eldorado and
Sino Gold, whereby Eldorado acquired all of the outstanding issued shares of
Sino Gold. The balance of R30 million (US$4 million) was profit on the sale of
our stake in an exploration junior.
Taxation
Taxation for the quarter amounted to R547 million (US$73 million) compared with
R831 million (US$111 million) in the December quarter, in line with the
decrease in taxable income. The tax expense includes normal and deferred
taxation at all operations, together with government royalties.
Earnings
Net profit attributable to ordinary shareholders amounted to R316 million
(US$44 million) or 44 SA cents per share (US$0.06 per share), compared with
R1,409 million (US$187 million) or 200 SA cents per share (US$0.27 per share)
in the December quarter.
Headline earnings i.e. earnings less the after tax effect of asset sales,
impairments and the sale of investments amounted to R292 million (US$40
million) or 41 SA cents per share (US$0.06 per share), compared with earnings
of R1,381 million (US$182 million) or 196 SA cents per share (US$0.26 per
share) in the December quarter.
Earnings excluding exceptional items as well as gains and losses on foreign
exchange, financial instruments and profit or losses of associates after
taxation amounted to R320 million (US$44 million) or 45 SA cents per share
(US$0.06 per share), compared with earnings of R1,022 million (US$135 million)
or 145 SA cents per share (US$0.20 per share) reported in the December quarter.
Cash flow
Cash inflow from operating activities for the quarter amounted to R2,584
million (US$345 million), compared with R2,105 million (US$279 million) in the
December quarter. This quarter on quarter increase of R479 million (US$66
million) was mainly due to a release of working capital of R706 million (US$92
million) in the March quarter compared with an investment in working capital of
R949 million (US$126 million) in the December quarter, partially offset by a
decrease in profit before tax and exceptional items of R976 million (US$127
million).
Capital expenditure decreased from R1,967 million (US$262 million) in the
December quarter to R1,872 million (US$250 million) in the March quarter.
At the South African operations, capital expenditure decreased marginally from
R1,137 million (US$152 million) in the December quarter to R1,085 million
(US$145 million) in the March quarter. Expenditure on Ore Reserve Development
(ORD) in the March quarter at Driefontein, Kloof and Beatrix accounted for R166
million (US$22 million), R175 million (US$23 million) and R110 million (US$15
million), compared with R147 million (US$19 million), R175 million (US$22
million), and R99 million (US$12 million) in the December quarter respectively.
The focus on development is in line with the stated need to increase
flexibility at the South African operations.
At the West African operations, capital expenditure increased from US$43
million to US$47 million due to increased expenditure on capital waste removal
at Teberebie and new mining equipment. In South America, at Cerro Corona,
capital expenditure was similar at US$24 million with the majority of the
expenditure on the Tailings Management Facility. At the Australian operations,
capital expenditure decreased from A$46 million to A$36 million for the
quarter. At St Ives, capital expenditure decreased from A$31 million to A$27
million with the majority of expenditure on infrastructure development. At
Agnew, capital expenditure decreased from A$15 million to A$9 million with most
of the expenditure on exploration and development activities.
Purchase of investments of R47 million (US$7 million) relates to a secured
equipment loan made to one of our mining contractors at St Ives.
Proceeds on the disposal of investments of R172 million (US$23 million)
reflects mainly the sale of 1,400,000 Eldorado shares and 1,392,000 Orezone
Gold Corporation shares.
Net cash inflow from financing activities in the March quarter amounted to R578
million (US$78 million). Loans received in the March quarter amounted to R2.7
billion (US$355 million). This includes R2.4 billion (US$316 million) received
from commercial paper issuance and working capital loans of R290 million (US$39
million).
Loans repaid amounted to R2.1 billion (US$279 million), consisting primarily of
R1.8 billion (US$236 million) as a result of the refinancing of the South
African commercial paper programme, R180 million (US$23 million) repayment of
offshore facilities and repayment of working capital loans of R150 million
(US$20 million).
Net cash inflow for the March quarter at R1.1 billion (US$143 million) compares
with a net cash outflow of R534 million (US$72 million) in the December
quarter. After accounting for a negative translation adjustment of R57 million
(positive US$3 million), the net cash inflow for the March quarter was R997
million (US$145 million) resulting in a cash balance at the end of March of
R2,825 million (US$384 million). The cash balance at the end of December was
R1,828 million (US$239 million).
Balance sheet (Investments and net debt)
Investments decreased from R1,647 million (US$215 million) at 31 December 2009
to R1,399 million (US$190 million) at 31 March 2010.
Net debt (long-term loans plus current portion of long-term loans less cash and
deposits) decreased from R6,669 million (US$871 million) in the December
quarter to R6,091 million (US$829 million) in the March 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
two to three years. To date, good progress has been made on these projects.
Project 1M
Project 1M is a productivity initiative that aims to improve quality mining
volumes by increasing the face advance by between 5 and 10 per cent per annum,
based on financial year 2009 actuals. This should translate to similar
improvements in tons broken over the same period.
This should be achieved through the following key improvement initiatives:
drilling and blasting practices to improve advance per blast;
support, cleaning and sweeping practices to improve blasting frequency;
mining cycle, labour availability and training; and
improved pay face availability.
Primarily as a result of the effects of an extended Christmas break, face
advance for the quarter reduced by 11 per cent when compared with the previous
quarter.
Project 2M
Project 2M is a technology initiative aimed at mechanising all flat- end
development (i.e. development on the horizontal plane) at the long-life shafts
of Driefontein, Kloof and Beatrix. The aim of the project is to improve safety
and productivity, reduce development costs and increase ore reserve
flexibility. The project achieved a mechanised rate of 58 per cent of flat end
development at the long life shafts by the end of the March quarter. By the end
of financial 2010 we expect approximately two thirds of all flat-end
development to be mechanised. South Deep is excluded as it is already a fully
mechanised mine.
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.
Electricity consumption targets for financial 2010 were set to maximise
production within the Eskom limits of 90 per cent. During the March quarter,
the challenge has been met on consumption, but the actual tariff of electricity
has increased by 36 per cent compared with financial 2009. Various projects are
in progress to reduce consumption further, including the introduction of three
chamber pump systems which will use the gravitational force of chilled service
water from surface to pump out warm underground water, thereby improving
efficiency and reducing electricity costs at Driefontein and Kloof by around 10
Megawatt which approximates two per cent of current usage. Also at these
operations, real time monitoring of power consumption has been introduced at
all major points of delivery, and pump efficiencies continue to improve.
A project is currently underway to reduce consumption by another 10 per cent.
This is a two to three year project and will require fundamental technology
changes. Nonetheless, further savings from the existing configuration are
possible.
The work place absenteeism project ("Unavailables project") aims to ameliorate
the impact of work place absenteeism on production and costs by targeting a
reduction from 14 per cent to 10 per cent of all absenteeism, excluding annual
and unpaid leave, by the end of financial 2010. A target of 2 per cent in each
of financial 2009 and 2010 was set. The target of 2 per cent reduction was
achieved in financial 2009 mainly due to reduced incidences of industrial
action and more diligent labour management. Current targets are being achieved.
The above-ground cost project aims to reduce surface costs by at least R150
million per annum by the end of financial 2010.
Projects in place to reduce above ground cost are the following:
Shared Services and property division: savings for the quarter were R17
million. These savings were realised by optimisation of process, labour,
discounts received and inventory.
Training expenditure: a focused strategy to service our core business is
being developed. Benefits of this re-aligned strategy for the quarter amounted
to R9 million.
South African operations (various small projects): savings for the quarter
amounted to R17 million.
Supply chain projects: contracted savings for the quarter amounted to R13
million. These benefits were delivered through competitive tendering on
conveyor belts, valves, tyres and various repair contracts and also certain
contractual rise and fall arrangements.
Price inflation was experienced in cost areas such as permanent support and
some steel products, but overall inflation was similar to the previous quarter
and well below CPI.
Project 4M
Project 4M focuses on the Mine Health and Safety Council (MHSC) milestones
agreed to on 15 June 2003 at a tripartite health and safety summit comprising
representatives from Government, Organised Labour 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 reducing the noise at source. One of the milestone targets is that
no machine or piece of equipment may generate a sound pressure level in excess
of 110 dB (A) after December 2013. At the end of the March quarter 96 per cent
of equipment measured was below 110 dB (A). A number of action plans, based on
the highest potential exposure source, to reduce the noise at source was
implemented. These include inter alia: the silencing of all auxiliary fans,
pneumatic loaders and diamond drills. Progress to date is encouraging and for
the three interventions is 93 per cent, 78 per cent and 92 per cent
respectively across all four operations.
Silicosis remains one of the biggest health risks associated with the Gold
Mining Industry. In order to meet the silicosis targets the company has put
several interventions in place. Interventions include the upgrading of tip
filters by replacement of complete installations or through the installation of
first stage pre-filtration systems, the use of foggers, footwall treatment, and
the installation of tip doors. Progress to date is 71 per cent, 61 per cent and
37 per cent respectively across all four operations which should enable us to
meet our targets.
Of the individual gravimetric dust sample measurements taken during the March
quarter 4 per cent was above the occupational exposure limits of 0.1 milligrams
per cubic metre, thus meeting the target of not more than 5 per cent of
individual samples above the occupational exposure limits. Progress against all
interventions is monitored monthly and reviewed quarterly.
Project 5M
Uranium project
The feasibility study is still in progress due to complex permutations being
considered on how best to optimise this project. In parallel, the Environmental
Impact Report and licensing and permitting processes continue.
South Africa region
Driefontein
March Dec
2010 2009
Gold produced - kg 4,575 5,825
- 000`oz 147.1 187.3
Yield - underground - g/t 6.2 7.2
- combined - g/t 3.3 3.8
Total cash cost - R/kg 195,650 154,678
- US$/oz 811 642
Notional cash expenditure - R/kg 258,907 208,103
- US$/oz 1,074 864
Gold production decreased from 5,825 kilograms (187,300 ounces) in the December
quarter to 4,575 kilograms (147,100 ounces) in the March quarter mainly due to a
decrease in underground volume. This decrease was mainly due to the safety
related stoppages late in the December quarter which reduced the volume of the
opening inventories of available ore early in this quarter. The Christmas break
and slow start thereafter also affected production. Underground tons milled
decreased from 720,000 in the December quarter to 651,000 in the March quarter
due to the reduced underground production volumes. Surface tons decreased from
828,000 to 751,000 mainly due to a sinkhole on the rail network which restricted
transportation to the plants. Underground yield decreased from 7.2 grams per ton
to 6.2 grams per ton due to lower volumes from the higher grade shafts. Surface
yield declined from 0.8 grams per ton in the December quarter to 0.7 grams per
ton in the March quarter.
Main development decreased by 8 per cent for the quarter and on-reef
development decreased by 11 per cent both due to the Christmas break. The
average development value increased from 1,209 centimetre grams per ton in the
December quarter to 1,985 centimetre grams per ton in the March quarter,
primarily due to higher values developed at 1 and 5 shafts.
Operating costs decreased from R938 million (US$125 million) to R925 million
(US$123 million). This decrease was mainly due to lower stores consumption in
line with the lower production, and an increase in capitalised development
costs, partly offset by an increase in labour costs. Total cash cost increased
from R154,678 per kilogram (US$642 per ounce) to R195,650 per kilogram (US$811
per ounce).
Operating profit decreased from R592 million (US$79 million) in the December
quarter to R297 million (US$40 million) in the March quarter mainly due to the
lower production.
Capital expenditure decreased from R274 million (US$37 million) to R260 million
(US$35 million) in the March quarter.
Notional cash expenditure increased from R208,103 per kilogram (US$864 per
ounce) to R258,907 per kilogram (US$1,074 per ounce) as a result of the lower
gold production.
Kloof
March Dec
2010 2009
Gold produced - kg 3,344 4,887
- 000`oz 107.5 157.1
Yield - underground - g/t 6.6 7.5
- combined - g/t 3.3 4.6
Total cash cost - R/kg 237,978 169,306
- US$/oz 987 703
Notional cash expenditure - R/kg 327,482 233,804
- US$/oz 1,358 971
Gold production decreased from 4,887 kilograms (157,100 ounces) in the December
quarter to 3,344 kilograms (107,500 ounces) in the March quarter. This
reduction arose from the Christmas break and the slow start-up thereafter and a
decision to accelerate the replacement of a water pump column at Main shaft
after certain sections of the column showed significant corrosion, resulting in
the premature failure of some of the sections. Underground tons milled
decreased from 612,000 tons to 454,000 tons with a decrease in yield from 7.5
grams per ton to 6.6 grams per ton. This was partially replaced with surface
material, albeit at a lower grade, which increased to 574,000 tons compared
with 461,000 tons in the December quarter, at a constant yield of 0.6 grams per
ton.
Main development decreased by 25 per cent for the quarter and on-reef
development decreased by 29 per cent due to the replacement of the water pump
column and the Christmas break. The average development value decreased from
2,471 centimetre grams per ton in the December quarter to 2,289 centimetre
grams per ton in the March quarter mainly due to lower grades at 3 shaft and 4
shaft.
Operating costs decreased from R863 million (US$115 million) in the December
quarter to R831 million (US$111 million) in the March quarter. The decrease in
operating costs was mainly due to lower production as a result of the
accelerated maintenance at Main shaft. Total cash cost increased from R169,306
per kilogram (US$703 per ounce) to R237,978 per kilogram (US$987 per ounce) due
to the lower production.
Operating profit decreased from R423 million (US$56 million) in the December
quarter to R61 million (US$9 million) in the March quarter.
Capital expenditure decreased from R280 million (US$37 million) to R265 million
(US$35 million) in the March quarter mainly due to project phasing. The final
preparation work for the replacement of the Main shaft water pump column is in
progress with the completion date scheduled for October 2010 at a cost of
around R9 million. Alternative pumping arrangements, through 4 shaft, 7 shaft
and 8 shaft, were successfully implemented.
Notional cash expenditure increased from R233,804 per kilogram (US$971 per
ounce) to R327,482 per kilogram (US$1,358 per ounce) due to the lower gold
production.
Beatrix
March Dec
2010 2009
Gold produced - kg 2,577 3,318
- 000`oz 82.9 106.7
Yield - underground - g/t 4.0 4.2
- combined - g/t 3.5 4.1
Total cash cost - R/kg 206,092 167,722
- US$/oz 855 696
Notional cash expenditure - R/kg 274,466 220,766
- US$/oz 1,138 917
Gold production decreased from 3,318 kilograms (106,700 ounces) in the December
quarter to 2,577 kilograms (82,900 ounces) in the March quarter mainly due to
the Christmas break and the slow start-up thereafter. Underground tons milled
decreased from 786,000 tons to 610,000 tons and the yield decreased from 4.2
grams per ton to 4.0 grams per ton. Surface ore milled increased from 31,000
tons to 116,000 tons at a similar yield of 1.0 gram per ton. This increase was
due to surface stockpiles milled over the Christmas break.
Main development decreased by 13 per cent quarter on quarter and on-reef
development decreased by 30 per cent, due to the Christmas break. The average
development value decreased from 1,721 centimetre grams per ton in the December
quarter to 1,598 centimetre grams per ton in the March quarter, mainly due the
value variability of the zones being developed.
Operating costs decreased from R576 million (US$77 million) in the December
quarter to R550 million (US$73 million) in the March quarter. This decrease was
mainly due to the lower production. Total cash cost increased from R167,722 per
kilogram (US$696 per ounce) in the December quarter to R206,092 per kilogram
(US$855 per ounce) in the March quarter.
Operating profit decreased from R302 million (US$40 million) in the December
quarter to R138 million (US$19 million) in the March quarter due to lower gold
production.
Capital expenditure was similar at R157 million (US$21 million) for the March
quarter, with the majority spent on ore reserve development costs.
Notional cash expenditure increased from R220,766 per kilogram (US$917 per
ounce) in the December quarter to R274,466 per kilogram (US$1,138 per ounce) in
the March quarter due to the lower production.
South Deep project
March Dec
2010 2009
Gold produced - kg 1,801 2,227
- 000`oz 57.9 71.6
Yield - underground - g/t 6.2 6.2
- combined - g/t 4.5 5.6
Total cash cost - R/kg 230,594 183,655
- US$/oz 956 763
Notional cash expenditure - R/kg 461,521 380,647
- US$/oz 1,914 1,581
Gold production decreased from 2,227 kilograms (71,600 ounces) in the December
quarter to 1,801 kilograms (57,900 ounces) in the March quarter, due to a
decrease in underground mining volumes. The decrease was due to the Christmas
break and slow start-up thereafter. Underground tons milled decreased from
383,000 tons in the December quarter to 312,000 tons in the March quarter. The
underground yield remained constant at 6.2 grams per ton. The combined yield
decreased from 5.6 grams per ton in the December quarter to 4.5 grams per ton
in the March quarter as a result of an increase in lower grade surface ore
processed, which increased from 12,000 tons to 112,000 tons in the March
quarter mainly due to surface stockpiles milled over the Christmas break.
Development decreased by 11 per cent from 2,606 metres in the December quarter
to 2,321 metres in the March quarter. The new mine capital development for
phase 1, sub 95 level, decreased by 29 per cent from 1,016 metres to 720
metres. This decrease was due to the mining of larger dimension infrastructure
on 110 and 110A levels. Development in the current mine areas above 95 level
increased by 3 per cent in the March quarter from 1,394 metres to 1,440 metres.
Raiseboring decreased from 196 metres in the December quarter to 161 metres in
the March quarter.
Operating costs increased from R421 million (US$56 million) in the December
quarter to R427 million (US$57 million) in the March quarter in line with the
planned project and labour build-up, given the recent change to full calendar
operations (FULCO), the benefits of which will only be realised in future
quarters. Total cash cost increased from R183,655 per kilogram (US$763 per
ounce) in the December quarter to R230,594 per kilogram (US$956 per ounce) in
the March quarter mainly due to the lower gold production.
Operating profit decreased from R168 million (US$22 million) in the December
quarter to R53 million (US$7 million) in the March quarter.
Capital expenditure decreased from R427 million (US$57 million) in the December
quarter to R404 million (US$54 million) in the March quarter in line with the
project plan. The major capital expenditure was on new mine development, in
preparation for the ventilation shaft deepening and infrastructure, and
construction of the new tailings facility.
Notional cash expenditure increased from R380,647 per kilogram (US$1,581 per
ounce) to R461,521 per kilogram (US$1,914 per ounce) due to the lower gold
production.
South Africa region guidance
The estimate for the June 2010 quarter is as follows:
Gold produced - between 15,200 and 15,500 kilograms (between 490,000 and
500,000 ounces)
Total cash cost* - between R181,000 and R185,000 per kilogram (between US$765
and US$785 per ounce)
Capital expenditure* - R1,210 million (US$165 million)
Notional cash expenditure* - between R267,000 and R272,000 per kilogram
(between US$1,130 and US$1,150 per ounce).
* Based on an exchange rate of US$1 = R7.35.
West Africa region
Ghana
Tarkwa
March Dec
2010 2009
Gold produced - 000`oz 172.6 172.8
Yield - heap leach - g/t 0.6 0.5
- CIL plant - g/t 1.3 1.4
- combined - g/t 0.9 1.0
Total cash cost - US$/oz 565 492
Notional cash expenditure - US$/oz 783 728
Gold production was similar at 172,600 ounces in the March quarter when
compared with the December quarter. The lower combined yield was offset by
higher volumes mined and processed.
Total tons mined, including capital stripping, increased from 31.9 million tons
in the December quarter to 35.7 million tons in the March quarter. Ore mined
increased from 5.1 million tons to 5.6 million tons. Head grade for the March
quarter was 1.16 grams per ton, marginally lower than December quarter`s head
grade of 1.18 grams per ton. The strip ratio increased marginally from 5.26 in
the December quarter to 5.41 in the March quarter, which is in line with the
long-term plan to improve mining flexibility.
The total feed to the CIL plant was 2.64 million tons, lower than the 2.70
million tons in the December quarter mainly due to unplanned maintenance at the
SAG mill. Yield from the CIL was 1.3 grams per ton, some 7 per cent below the
previous quarter. The CIL plant produced 110,800 ounces in the March quarter
compared with 125,300 ounces in the December quarter.
Total feed to the North heap leach at 2.42 million tons was slightly higher
than the 2.31 million tons achieved in the December quarter. North heap leach
yield for the quarter was maintained at 0.6 grams per ton. The "high pressure
grinding roller" (HPGR) project at the South heap leach facilities contributed
13,200 ounces as the process stabilised. The heap leach facilities produced
61,800 ounces in the March quarter, 30 per cent higher than the 47,500 ounces
produced in the December quarter.
Operating costs, including gold-in-process movements, increased from US$82
million (R612 million) in the December quarter to US$96 million (R724 million)
in the March quarter. This increase was mainly as a result of the new HPGR unit
(US$7 million), increased fuel costs and the additional waste tons mined. Total
cash cost increased from US$492 per ounce to US$565 per ounce.
Operating profit decreased from US$109 million (R818 million) in the December
quarter to US$96 million (R716 million) in the March quarter.
Capital expenditure increased from US$37 million (R274 million) to US$38
million (R289 million) for the March quarter, with new mining equipment,
tailings dam expansion and pre-stripping at the Teberebie cutback being the
major items during the quarter.
Notional cash expenditure for the quarter was US$783 per ounce, compared with
the previous quarter`s US$728 per ounce, reflecting the increased operating
cost and capital expenditure.
Damang
March Dec
2010 2009
Gold produced - 000`oz 53.8 45.3
Yield - g/t 1.2 1.3
Total cash cost - US$/oz 667 643
Notional cash expenditure - US$/oz 783 791
Gold production increased from 45,300 ounces in the December quarter to 53,800
ounces in the March quarter. This was mainly due to an increase in mill
throughput as the plant was offline for 13 days in the December quarter because
of an accelerated rebuild of the SAG mill. Tons milled increased from 1.12
million tons to 1.35 million tons quarter on quarter. Yield was 8 per cent
lower at 1.2 grams per ton.
Total tons mined, including capital stripping, were similar to the December
quarter at 3.30 million tons. Ore mined decreased from 1.0 million tons to 0.9
million tons and the strip ratio achieved was 2.64 compared with the December
quarter`s 2.40.
Operating costs, including gold-in-process movements increased from US$28
million (R212 million) in the December quarter to US$35 million (R263 million)
in the March quarter. This increase was largely due to lower milling activity
in the previous quarter and the milling of the stockpile built up last quarter
due to the plant downtime while rebuilding the SAG mill. Total cash cost
increased from US$643 per ounce in the December quarter to US$667 per ounce in
the March quarter.
Operating profit increased from US$21 million (R155 million) in the December
quarter to US$25 million (R191 million) in the March quarter.
Capital expenditure increased from US$6 million (R49 million) in the December
quarter to US$8 million (R64 million) in the March quarter, with the majority
of the capital expenditure on exploration activities and the secondary crusher
project.
Notional cash expenditure for the quarter was marginally lower at US$783 per
ounce compared with the previous quarter`s US$791 per ounce.
West Africa region guidance
The estimate for the June 2010 quarter is as follows:
Gold produced - between 235,000 and 240,000 ounces
Total cash costs - between US$600 and US$610 per ounce
Capital expenditure - US$57 million
Notional cash expenditure - between US$815 and US$830 per ounce.
South American region
Peru
Cerro Corona
March Dec
2010 2009
Gold produced - 000`oz 37.8 34.5
Copper produced - tons 11,100 10,600
Total equivalent gold produced - 000` eq oz 110.2 98.4
Total equivalent gold sold - 000` eq oz 110.7 99.9
Yield - gold - g/t 0.8 0.7
- copper -% 0.75 0.71
- combined - g/t 2.2 2.0
Total cash cost - US$/eq oz 303 378
Notional cash expenditure - US$/eq oz 532 617
Gold price * - US$/oz 1,110 1,090
Copper price * - US$/t 7,217 6,546
* Used to calculate total equivalent gold produced
Gold produced increased from 34,500 ounces in the December quarter to 37,800
ounces in the March quarter and copper produced increased from 10,600 tons to
11,100 tons. During the March quarter concentrate with payable content of
37,700 ounces of gold was sold at an average gold price of US$1,109 per ounce
and 11,100 tons of copper was sold at an average copper price of US$6,631 per
ton, net of treatment and refining charges. The higher gold and copper
production compared with the December quarter was mainly due to an increase in
concentrate production of 9 per cent, from 49,100 dry metric tons in the
December quarter to 53,300 dry metric tons in the March quarter.
Total tons mined increased from 2.63 million tons in the December quarter to
3.79 million tons during the March quarter. Ore mined at 1.56 million tons was
similar to December quarter`s 1.57 million tons. The March quarter`s strip
ratio of 1.4 was higher than the December quarter`s strip ratio of 0.7 and the
life of mine strip ratio, forecast at 0.9, which is in line with the mine plan
to mine more waste tons in the short-term to ensure production flexibility.
Ore processed at 1.55 million tons in the March quarter was similar to December
quarter`s 1.56 million tons. Gold yield for the quarter was 0.8 grams per ton,
compared with 0.7 grams per ton in the December quarter and copper yield was
0.75 per cent compared with 0.71 per cent in the December quarter.
Operating costs, including gold-in-process movements, decreased from US$37
million (R277 million) in the December quarter to US$34 million (R254 million)
in the March quarter. The decrease in operating cost was mainly due to lower
plant expenditure due to scheduled plant maintenance in the December quarter.
Total cash cost was US$303 per equivalent ounce sold compared with US$378 per
equivalent ounce sold in the December quarter.
Operating profit at US$84 million (R629 million) compares with US$72 million
(R539 million) in the December quarter, reflecting the higher metal sales and
prices.
Capital expenditure for the March quarter was US$24 million (R182 million) the
same as for the December quarter. The majority of the expenditure was spent on
construction of the second phase of the Tailings Management Facility.
Notional cash expenditure for the March quarter at US$532 per equivalent ounce
was lower than the previous quarter`s US$617 per equivalent ounce, reflecting
the current quarter`s lower operating cost and higher metal production.
The estimate for the June 2010 quarter is as follows:
Metals (gold and copper) produced - between 90,000 and 95,000 equivalent
ounces*
Total cash cost - between US$385 and US$400 per equivalent ounce
Capital expenditure - US$17 million
Notional cash expenditure - between US$550 and US$580 per equivalent ounce
* Equivalent ounces are based on a gold price of US$1,100 per ounce and copper
price of US$7,400 per ton.
Australasia region
Australia
St Ives
March Dec
2010 2009
Gold produced - 000`oz 107.3 96.0
Yield - heap leach - g/t 0.5 0.4
- milling - g/t 2.8 2.2
- combined - g/t 2.1 1.7
Total cash cost - A$/oz 811 798
- US$/oz 732 724
Notional cash expenditure - A$/oz 1,103 1,149
- US$/oz 994 1,043
Gold produced increased from 96,000 ounces in the December quarter to 107,300
ounces in the March quarter.
Gold produced from the Lefroy mill increased from 88,000 ounces to 99,500
ounces, due to an improved head grade and a marginal improvement in recovery.
Production from the heap leach facility was similar at 7,800 ounces.
At the open pit operations total tons of ore mined for the March quarter at
1.65 million tons, was similar to the 1.64 million tons of ore mined in the
December quarter. Grade increased from 1.30 grams per ton to 1.59 grams per
ton. The increase in grade was mainly due to the increased grades from
Leviathan, where mining progressed to a higher grade region and proportionally
higher volumes from Apollo at 2.2 grams per ton. The average strip ratio,
including capital waste, was similar at 4.8 for the quarter.
At the underground operations 322,600 tons of ore was mined at 5.3 grams per
ton in the March quarter, compared with 370,000 tons of ore mined at 3.9 grams
per ton in the December quarter. The 36 per cent higher average grade reflects
grade improvements across all three underground mines, with a significant
improvement at Argo, where the grade improved by 43 per cent from 4.2 grams per
ton to 6.0 grams per ton due to mining of higher grade stopes and reduced
dilution.
Operating costs, including gold-in-process movements, increased from A$78
million (R532 million) in the December quarter to A$84 million (R566 million)
in the March quarter. The increase in costs was primarily due to increased
deferred waste charges on the additional open pit ounces mined, increased grade
control drilling.
Operating profit increased from A$37 million (R253 million) to A$47 million
(R318 million), due to the increase in ounces sold partially offset by
increased operating costs.
Capital expenditure decreased from A$31 million (R212 million) to A$27 million
(R185 million). This decrease was due to lower capital development compared with
the December quarter. Development of the Athena underground project, however,
continued to accelerate during the quarter with 679 metres completed, including
326 metres in March alone. This project acceleration is targeted to have first
stope ore produced in January 2011 and full production by early F2012. Capital
expenditure for this project is estimated at A$79 million in today`s terms of
which A$7 million was spent during the quarter and A$18 million to date.
Notional cash expenditure decreased from A$1,149 per ounce (US$1,043 per ounce)
in the December quarter to A$1,103 per ounce (US$994 per ounce) as a result of
the reduced capital expenditure and the increase in production.
Agnew
March Dec
2010 2009
Gold produced - 000`oz 40.7 46.9
Yield - g/t 5.9 5.8
Total cash cost - A$/oz 606 509
- US$/oz 547 461
Notional cash expenditure - A$/oz 850 856
- US$/oz 766 777
Gold production decreased from 46,900 ounces in the December quarter to 40,700
ounces in the March quarter. This decrease was mainly due to restricted
underground stope access which hampered the ability of the mine to supply
sufficient ore to the plant during the quarter, together with a major shutdown
for planned maintenance in March. Tons milled decreased from 250,000 tons in
the December quarter to 214,000 tons in the March quarter. Yield was similar at
5.9 grams per ton.
Ore mined amounted to 148,000 tons in the March quarter at a head grade of 8.5
grams per ton compared with 153,000 tons in the December quarter at a head
grade of 10.6 grams per ton. The decrease in the head grade was mainly due to a
higher proportion of production for the quarter coming from the lower grade
Main Lode.
Operating costs, including gold-in-process movements, increased from A$23
million (R158 million) in the December quarter to A$25 million (R170 million)
in the March quarter. This increase was mainly due to the rehabilitation of
localised poor ground conditions in current mining areas at Kim South. Total
cash cost per ounce increased from A$509 per ounce (US$461 per ounce) in the
December quarter to A$606 per ounce (US$547 per ounce) in the March quarter.
Operating profit decreased from A$34 million (R229 million) in the December
quarter to A$25 million (R167 million) in the March quarter. This was primarily
due to the impact of the lower production.
Capital expenditure was lower at A$9 million (R61 million) compared with A$15
million (R100 million) in the December quarter. This was mainly due to the
completion of concrete bunding works for cyanide code compliance and additional
expenditure on exploration drilling at Kim Lode in the previous quarter. In the
June quarter Agnew will spend around A$16 million on the initial purchase of
underground mining fleet as the mine moves to owner mining. Total capital
expenditure relating to owner mining is estimated at A$20 million with a
payback of around 3 years.
Notional cash expenditure decreased from A$856 per ounce (US$777 per ounce) in
the December quarter to A$850 per ounce (A$766 per ounce) in the March quarter.
Australasia region guidance
The estimate for the June 2010 quarter is as follows:
Gold produced - between 145,000 and 150,000 ounces
Total cash cost* - between A$735 and A$760 per ounce (between US$680 and US$700
per ounce)
Capital expenditure* - A$56 million (US$52 million)
Notional cash expenditure* - between A$1,150 and A$1,200 per ounce (between
US$1,060 and US$1,100 per ounce)
* Based on A$1=US$0.925.
Quarter ended 31 March 2010 compared with quarter ended 31 March 2009
Group attributable gold production decreased by 8 per cent from 871,000 ounces
for the quarter ended March 2009 to 793,000 ounces for the quarter ended March
2010.
At the South African operations gold production decreased from 517,000 ounces
to 395,000 ounces. Driefontein`s gold production decreased from 215,000 ounces
to 147,000 ounces due to a decrease in volumes mined related largely to safety
factors. At Kloof, gold production decreased from 174,000 ounces to 108,000
ounces due to the accelerated replacement of a water pump column in Main shaft
after certain sections of the column showed significant corrosion, resulting in
the premature failure of some of the sections. Beatrix`s gold production
increased from 80,000 ounces to 83,000 ounces. South Deep`s gold production
increased from 48,000 ounces to 58,000 ounces due to the mine being in a
build-up phase.
At the West African operations total managed gold production increased from
205,000 ounces for the quarter ended March 2009 to 227,000 ounces for the
quarter ended March 2010. At Damang, gold production increased by 3 per cent to
54,000 ounces. At Tarkwa, gold production increased by 14 per cent to 173,000
ounces due to the completion of the expanded CIL plant.
In South America, gold equivalent production at Cerro Corona increased from
61,000 ounces in the March 2009 quarter to 110,000 ounces in the March 2010
quarter. This time last year the mine was still in a build-up phase.
At the Australasian operations gold production decreased by 7 per cent from
159,000 ounces in the March 2009 quarter to 148,000 ounces in the March 2010
quarter. St Ives decreased by 2 per cent from 109,000 ounces to 107,000 ounces.
This was mainly due to a reduction in throughput and lower grades from surface
and underground ore. Production at Agnew decreased to 41,000 due to delays in
stope availability due to adverse ground conditions at Kim South.
Revenue decreased by 14 per cent from R8,510 million (US$869 million) to R7,280
million (US$971 million). The 8 per cent lower average gold price at R265,641
per kilogram (US$1,102 per ounce) compares with R289,095 per kilogram (US$906
per ounce) achieved for the quarter ended March 2009. The US dollar
strengthened from US$1 = R9.93 to US$1 = R7.50 or 24 per cent, while the
rand/Australian dollar weakened by 3 per cent from A$1 = R6.59 to A$1 = R6.76.
Operating costs, including gold-in-process movements, increased from R4,524
million (US$453 million) to R4,710 million (US$628 million). The increase in
costs was mainly due to annual wage and electricity tariff increases in South
Africa and general inflationary increases. Total cash cost for the Group
increased from R150,301 per kilogram (US$471 per ounce) to R169,538 per
kilogram (US$703 per ounce) due to decreased gold production.
At the South African operations operating costs increased by 12 per cent from
R2,434 million (US$243 million) for the March 2009 quarter to R2,733 million
(US$364 million) for the March 2010 quarter. This was due to more employees at
all the operations, increased electricity tariffs and annual wage increases.
Total cash cost at the South African operations increased from R143,340 per
kilogram to R214,467 per kilogram as a result of the above.
At the West African operations, operating costs, including gold-in- process
movements, increased from US$108 million to US$131 million. This was mainly at
Tarkwa due to the 14 per cent increase in production and increased fleet
maintenance costs. At the South American operation, operating costs including
gold-in- process movements at Cerro Corona increased from US$31 million in the
March 2009 quarter to US$34 million in the March 2010 quarter in line with the
increase in production.
At the Australian operations, operating costs including gold-in- process
movements was similar at A$109 million.
Operating profit decreased from R3,986 million (US$416 million) to R2,570
million (US$344 million).
After accounting for the above items, amortisation, sundry costs and taxation,
net earnings amounted to R316 million (US$44 million), compared with R1,307
million (US$140 million) for the quarter ended March 2009.
Earnings excluding exceptional items, gains and losses on foreign exchange,
financial instruments and gains or losses of associates after taxation,
amounted to R320 million (US$44 million) for the quarter ended March 2010,
compared with R1,369 million (US$146 million) for the quarter ended March 2009.
Exploration and corporate development
Exploration activity continued during the March quarter with 27 drill rigs
operating on nine greenfields projects in Australia, Peru, Mali, Canada, the
Philippines and Chile, as well as near mine exploration at St Ives, Agnew and
Damang.
In addition to the ongoing exploration projects, the group maintains an
aggressive business development function to seek out and evaluate the most
attractive exploration opportunities available for joint venture or
acquisition, largely within the countries and belts where we are currently
active.
Advanced drilling projects
At the Chucapaca project in southern Peru, Gold Fields completed its earn-in
for a 51 per cent interest in a joint venture with Buenaventura (NYSE "BVN").
The first phase of resource delineation drilling on the Canahuire target was
concluded. Results continue to be positive and an interim scoping study and
delivery of an initial resource is on track for completion in the June 2010
quarter. Planning, permitting and community agreements are in progress to allow
the next phase of resource delineation and step-out drilling to resume at
Canahuire early in financial 2011. Initial drilling resumed on the Katrina
satellite targets and will continue through the June quarter and into next
financial year. This project is progressing well and is on track to be Gold
Fields` next mine in the South American region.
At the Talas project in northern Kyrgyzstan, Gold Fields completed its earn-in
for a 60 per cent interest in a joint venture with Orsu Metals Corporation
(TSX: "OSU" and AIM: "OSU"). An internal scoping study was completed during the
quarter which highlighted an opportunity for further optimisation of the
project. Recent violent demonstrations in Kyrgyzstan have resulted in the
resignation of the President and the instalment of an interim government until
an election which is expected within the next six months. Gold Fields is
monitoring developments closely and actively engaging both local and state
authorities. Community development programmes are ongoing. It is expected that
optimisation studies will commence in the September 2011 quarter, if the
situation continues to stabilise, and will include infill drilling, further
metallurgical test work and trade-off studies.
At the Yanfolila project (including the Komana and Sankarani Projects) in
southern Mali, the resource delineation drilling programme continued at the
Komana East and West deposit areas. Ground geophysical surveys at Komana East
have outlined a possible 2.6 kilometre south extension of the target.
Target generation using geophysics and aircore drilling is in progress
elsewhere on the Komana leases. Other exploration activities in the belt
include the ongoing initial drilling programmes on the Bokoro, Finguana, and
Sanioumale targets. Target definition results from the Solona license have
identified several prospect areas which merit initial drilling testing.
At the Arctic Platinum project in Finland, the ten-hole 1,000 metre
metallurgical drilling programme was completed. All samples for the Platsol
metallurgical tests were sent to SGS Laboratories in Canada. A project cost
review study has been contracted and is underway.
Initial drilling projects
At the East Lachlan joint ventures in New South Wales, Australia, Gold Fields
has earned into an 80 per cent interest in two porphyry Au-Cu project areas
(Wellington North and Cowal East). Aircore drilling results at the Myall and
Cowal East concessions continue to return highly variable Cu and Au values.
These values are associated with widespread porphyry-style alteration and
mineralisation. We are also earning into 80 per cent on another two projects
with Clancy Exploration Ltd (ASX: "CLY").
At the Batangas joint ventures in the Philippines, where Gold Fields can earn
up to a 75 per cent interest in three joint ventures with Mindoro Resources
Ltd. (TSX.V: "MIO"), a review of previous drilling at the Lobo joint venture
has highlighted potential for both porphyry and structurally controlled
mineralisation. A number of community initiatives were implemented and are
being well received.
At the SBX joint venture in Chile, where Gold Fields can earn up to 90 per cent
on three claims held by SBX Asesoriase Inversiones and 100 per cent on a
fourth property under a separate option agreement with S.C.M. Aguas Heladas,
the second stage of diamond drilling at Pircas Target was completed.
Additional holes are planned for this target in the June quarter.
At the Woodjam project in British Columbia, Canada, Gold Fields can earn up to
a 70 per cent interest in the Woodjam North joint venture with the Woodjam
Partners (Fjordland Exploration Inc. (TSX.V: "FEX") and Cariboo Rose Resources
(TSX.V: "CRB")). A second phase of diamond drilling commenced in the March
quarter. At Takom, drilling targeted the mineralised diorite, intersected
during the autumn drill programme. All holes have intersected the diorite
confirming the intrusive geometry as a moderately SE-dipping dyke-like body,
although the intensity of mineralisation appears to decrease along strike away
from the best intersections.
At the Toodoggone joint venture in British Columbia, Canada, where Gold Fields
can earn up to a 75 per cent interest in a joint venture with Cascadero Copper
Corp. (TSX.V: "CCD"), the initial diamond drilling programme concluded for the
season in October 2009. Force majeure has been declared to suspend the joint
venture terms while Gold Fields tries to resolve the First Nations` opposition
to exploration activities in the project area. Meetings with the relevant
groups are planned for the June quarter.
Near mine exploration
At St. Ives, the focus is still on the Argo-Athena discoveries which have been
recognised as a significant new camp that requires an accelerated exploration
strategy.
At the Argo-Athena camp, drilling at Hamlet continued to test extensions of the
lower lode at 600 metres below surface, as well as reserve conversion of the
upper and lower shoots up to 300 metres below surface. At the Yorick open pit
project, two discrete ore shoots were defined and extensional drilling is
planned to test for a third shoot below the two known shoots. Resource
definition and extensional drilling continued with encouraging results at the
Cave Rocks underground mine and additional drilling at Naiad to extend this
underground orebody.
Work in the Argo-Athena camp, especially more recently at Hamlet, continues to
demonstrate the potential for 4 to 5 million ounces endowment with the ability
to support an increase in production in the mid-term.
At Agnew, results from the surface directional drilling programme continue to
suggest that the Kim Lode comprises a core breccia in an 8 to 10 metre thick
alteration zone. This wide zone of mineralisation as well as development of a
footwall lode in places will facilitate a bulk mining method, potentially
reducing costs. Planning to test part of the Main North Lode below current
infrastructure is well advanced, as well as extensional drilling of Rajah from
both underground and surface planned for financial 2011. Results for the Scotty
Creek full field aircore programme have been received and the Cinderella NE
anomaly has been extended two kilometres along strike. Follow up work is being
planned for financial 2011.
At Damang, the Phase 2 drilling programme at Huni Gap (a 20 x 20 metre infill
programme within the Greater Damang project area) has started, with three holes
completed. To the immediate south of the Damang Pit cut-back, at Juno, drilling
was completed on a combined RC and diamond drilling infill programme within the
limits of the previous pit shell.
Drilling within the Tomento East pit (part of the Amoanda North programme)
discovered hydrothermal mineralisation as well as paleaoplacer conglomerates.
Corporate development
Gold Fields and Conquest Mining Limited (ASX: "CQT") have agreed to dissolve
the Mt Carlton joint venture and in return Gold Fields will receive a 2.5 per
cent NSR royalty over the property including the developing Silver Hill
deposit. Gold Fields also currently holds 13 per cent of Conquest and is the
largest shareholder.
Gold Fields agreed a revised commercial arrangement in place of the Ojo de
Maricunga joint venture. Gold Fields now holds an indirect interest in the
project through a shareholding in a Canadian company - Atacama Pacific Gold
Corporation. Atacama is currently unlisted but may consider accessing public
markets based on current year field exploration results. Two private financing
rounds have been completed with Gold Fields holding about 13 per cent of the
outstanding common shares. A Relationship Agreement was also signed with
Atacama giving Gold Fields the right of first refusal over any third party
participation in the project for four years and the ability to nominate a
director to the Atacama board.
Corporate
New head for Gold Fields Australasia
The appointment of Richard Weston as Executive Vice-President of the
Australasian Region with effect from May 1 was announced on 24 March 2010.
Richard will join the company`s Executive Committee reporting directly to CEO
Nick Holland.
Richard (58), an Australian, has a M.Sc. in Mining Geomechanics from the
University of New South Wales and B. Engineering from Sydney University and he
brings a wealth of experience in the precious metals industry to Gold Fields.
He joins the company from Coeur d`Alene Mines Corporation, one of the world`s
largest silver miners as well as a significant gold producer.
Before joining Coeur in 2006 he led the site team responsible for the
development of Barrick Australia`s Cowal Gold Project and, prior to that, he
headed operations at Rio Tinto Australia`s ERA Ranger and Jabiluka uranium
mines in the Northern Territory.
Located in Perth, Richard will take responsibility for the two existing mines
in Australia, St Ives and Agnew, and will work with the business development
and exploration executives to grow production in Australasia to one million
ounces per annum over the next three to five years.
Changes to the Audit Committee
On 25 March 2010, Gayle Wilson was appointed Chairman of the Audit Committee in
place of John Hopwood who passed away on 18 March 2010 after a long illness.
Sponsorship to mining engineering faculties
Gold Fields announced on 19 April 2010, that it is investing R26 million in an
effort to address skills shortages in the South African mining industry. The
three-year sponsorship deal comprises investments in the mining engineering
faculties at the University of the Witwatersrand and the University of
Johannesburg.
In terms of the sponsorship agreements, the universities will receive a once-off
capital injection of R8 million followed by R6 million a year for three years.
In return Gold Fields is afforded naming right status for the infrastructure
that it sponsors as well as participation in advisory committees at the two
universities. Sponsorship of engineering education is not new to Gold Fields.
The company funded the National Engineering awards amongst seven universities
for years and is a significant contributor to the Mining Education and Training
Fund, which supports the salaries of senior academic staff in the field.
Milestone in South Deep development
On 21 April 2010 Gold Fields announced that it has started the depth extension
of the South Deep ventilation shaft, a crucial milestone in the development of
South Deep, the newest mine in Gold Fields` South African portfolio. The
ventilation shaft is the second of the two shafts which together form the Twin
shaft complex of South Deep. The first shaft of the Twin shaft complex, the
Main shaft, was completed in 2004.
The shaft will be extended from its current depth of 2,760 metres to 3,000
metres. The deepening and equipping of the shaft, which includes ore storage
silos and conveyor belts at shaft bottom, a new rock winder and new headgear,
is set to be completed by July 2012.
Outlook
In the June 2010 quarter attributable gold production is estimated between
875,000 and 900,000 attributable equivalent ounces, with an increase in
production in the South Africa region. The June quarter is characterised again
by the Easter weekend and a number of extra public holidays, which will impact
production at the South Africa operations. Total cash cost is estimated at
between US$675 and US$690 per ounce (between R160,000 and R163,000 per kilogram)
compared with US$703 per ounce (R169,538 per kilogram) in the March quarter.
The June estimate is based on an exchange rate of R/US$7.35 and US$/A$0.93,
compared with R/US$7.50 and US$/A$0.90 achieved in the March quarter. NCE is
estimated at between US$980 and US$1,000 per ounce (between R233,000 and
R240,000 per kilogram) compared with US$1,003 per ounce (R241,860 per kilogram)
in the March quarter. The above is subject to the forward looking statement.
The estimated financial information has not been reviewed and reported on by
Gold Fields` auditors in accordance with Section 8.40 (a) of the Listing
Requirements of the JSE Securities Exchange of South Africa.
Basis of accounting
The condensed consolidated preliminary financial information is prepared in
accordance with IAS 34 Interim Financial Reporting. The accounting policies and
disclosure requirements used in the preparation of this report are consistent
with those applied in the previous financial year except for the adoption of
applicable revised and/or new standards issued by the International Accounting
Standards Board.
N.J. Holland
Chief Executive Officer
7 May 2010
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
March December March
SOUTH AFRICAN RAND 2010 2009 2009
Revenue 7,279.9 8,066.9 8,509.5
Operating costs, net 4,709.8 4,589.0 4,523.7
- Operating costs 4,758.3 4,665.4 4,566.5
- Gold inventory change (48.5) (76.4) (42.8)
Operating profit 2,570.1 3,477.9 3,985.8
Amortisation and depreciation 1,139.3 1,156.0 1,140.9
Net operating profit 1,430.8 2,321.9 2,844.9
Net interest paid (44.7) (23.1) (163.5)
Share of gain/(loss) of associates after
taxation 4.1 43.8 21.1
(Loss)/gain on foreign exchange (15.6) 7.7 128.7
Loss on financial instruments (25.0) (54.7) (5.1)
Share-based payments (120.9) (121.1) (95.2)
Other (96.4) (25.3) (41.4)
Exploration (126.9) (167.7) (133.8)
Profit before taxation and exceptional
items 1,005.4 1,981.5 2,555.7
Exceptional gain/(loss) 22.3 432.0 (203.1)
Profit before taxation 1,027.7 2,413.5 2,352.6
Mining and income taxation 547.2 831.4 943.3
- Normal taxation 155.4 403.6 536.4
- Royalties 117.2 107.5 97.6
- Deferred taxation 274.6 320.3 309.3
Net profit 480.5 1,582.1 1,409.3
Attributable to:
- Owners of the parent 315.7 1,408.6 1,306.6
- Non-controlling interest 164.8 173.5 102.7
Exceptional items:
Profit /(loss) on sale of investments 24.4 30.0 (213.6)
Profit on sale of assets 0.9 0.1 11.0
Restructuring costs (1.7) 2.6 (0.5)
Insurance claim - South Deep - - -
Gain on financial instrument - 402.1 -
Impairment of investments (1.3) (2.8) -
Total exceptional items 22.3 432.0 (203.1)
Taxation 0.3 (57.3) (2.1)
Net exceptional items after taxation and
minorities 22.6 374.7 (205.2)
Net earnings 315.7 1,408.6 1,306.6
Net earnings per share (cents) 44 200 195
Diluted earnings per share (cents) 44 198 193
Headline earnings 292.0 1,381.4 1,511.6
Headline earnings per share (cents) 41 196 225
Net earnings excluding gains and losses on
foreign exchange, financial
instruments, exceptional items and share
of profit/(loss) of associates after 320.1 1,021.9 1,368.9
taxation
Net earnings per share excluding gains and
losses on foreign exchange,
financial instruments, exceptional items
and share of profit/(loss) of associates 45 145 204
after taxation (cents)
Gold sold - managed kg 27,405 30,576 29,435
Gold price received R/kg 265,641 263,828 289,095
Total cash cost R/kg 169,538 147,648 150,301
Nine months to
March March
SOUTH AFRICAN RAND 2010 2009
Revenue 22,762.6 21,307.5
Operating costs, net 13,927.4 13,181.9
- Operating costs 14,067.8 13,342.0
- Gold inventory change (140.4) (160.1)
Operating profit 8,835.2 8,125.6
Amortisation and depreciation 3,469.1 3,075.2
Net operating profit 5,366.1 5,050.4
Net interest paid (117.0) (439.2)
Share of gain/(loss) of associates after taxation 32.1 (129.7)
(Loss)/gain on foreign exchange (70.6) 168.1
Loss on financial instruments (211.5) (126.8)
Share-based payments (362.1) (283.4)
Other (127.1) (113.9)
Exploration (427.4) (337.6)
Profit before taxation and exceptional items 4,082.5 3,787.9
Exceptional gain/(loss) 1,121.1 (93.7)
Profit before taxation 5,203.6 3,694.2
Mining and income taxation 2,016.7 1,696.3
- Normal taxation 891.5 792.8
- Royalties 322.2 243.2
- Deferred taxation 803.0 660.3
Net profit 3,186.9 1,997.9
Attributable to:
- Owners of the parent 2,731.5 1,828.9
- Non-controlling interest 455.4 169.0
Exceptional items:
Profit /(loss) on sale of investments 783.1 (212.9)
Profit on sale of assets 2.0 10.0
Restructuring costs (4.9) (22.2)
Insurance claim - South Deep - 131.4
Gain on financial instrument 402.1 -
Impairment of investments (61.2) -
Total exceptional items 1,121.1 (93.7)
Taxation (171.6) (47.4)
Net exceptional items after taxation and minorities 949.5 (141.1)
Net earnings 2,731.5 1,828.9
Net earnings per share (cents) 387 275
Diluted earnings per share (cents) 383 268
Headline earnings 2,125.0 2,034.6
Headline earnings per share (cents) 301 305
Net earnings excluding gains and losses on foreign
exchange, financial
instruments, exceptional items and share of profit/(
loss) of associates after 1,966.8 2,031.5
taxation
Net earnings per share excluding gains and losses on
foreign exchange,
financial instruments, exceptional items and share of
profit/(loss) of associates 279 305
after taxation (cents)
Gold sold - managed kg 88,731 84,031
Gold price received R/kg 256,533 253,567
Total cash cost R/kg 154,303 152,500
Statement of comprehensive income
International Financial Reporting Standards Basis
Quarter
March December March
SOUTH AFRICAN RAND
2010 2009 2009
Net profit for the quarter 480.5 1,582.1 1,409.3
Other comprehensive (expenses)/ income,
net of tax (556.1) 587.6 1,026.9
Marked to market valuation of listed
investments (134.0) (10.9) 990.5
Currency translation adjustments and other (430.7) 608.9 31.5
Share of equity investee`s other
comprehensive income (0.1) 0.7 4.9
Deferred taxation on marked to market
valuation of listed investments 8.7 (11.1) -
Total comprehensive income for the quarter (75.6) 2,169.7 2,436.2
Attributable to:
- Owners of the parent (234.9) 1,979.0 2,335.0
- Non-controlling interest 159.3 190.7 101.2
(75.6) 2,169.7 2,436.2
Nine months to
March March
SOUTH AFRICAN RAND
2010 2009
Net profit for the quarter 3,186.9 1,997.9
Other comprehensive (expenses)/ income, net of tax (921.7) 1,011.1
Marked to market valuation of listed investments (342.2) (720.0)
Currency translation adjustments and other (668.0) 1,635.9
Share of equity investee`s other comprehensive income 12.3 95.2
Deferred taxation on marked to market valuation of
listed investments 76.2 -
Total comprehensive income for the quarter 2,265.2 3,009.0
Attributable to:
- Owners of the parent 1,822.8 2,809.9
- Non-controlling interest 442.4 199.1
2,265.2 3,009.0
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
March December March
UNITED STATES DOLLARS 2010 2009 2009
Revenue 971.2 1,075.6 868.5
Operating costs, net 627.6 613.0 453.0
- Operating costs 634.1 623.0 457.1
- Gold inventory change (6.5) (10.0) (4.1)
Operating profit 343.6 462.6 415.5
Amortisation and depreciation 152.0 154.4 115.4
Net operating profit 191.6 308.2 300.1
Net interest paid (5.9) (3.2) (16.5)
Share of gain/(loss) of associates after
taxation 0.5 5.7 3.0
(Loss)/gain on foreign exchange (2.1) 0.8 13.9
(Loss)/gain on financial instruments (3.4) (7.5) 0.1
Share-based payments (16.1) (16.1) (9.5)
Other (12.7) (3.3) (4.1)
Exploration (16.9) (22.3) (13.7)
Profit before taxation and exceptional items 135.0 262.3 273.3
Exceptional gain/(loss) 3.9 58.3 (22.7)
Profit before taxation 138.9 320.6 250.6
Mining and income taxation 73.3 110.5 99.4
- Normal taxation 21.1 53.7 57.4
- Royalties 15.6 14.3 9.9
- Deferred taxation 36.6 42.5 32.1
Net profit 65.6 210.1 151.2
Attributable to:
- Owners of the parents 43.7 187.1 140.4
- Non-controlling interest 21.9 23.0 10.8
Exceptional items:
Profit/(loss) on sale of investments 3.8 6.0 (23.3)
Profit on sale of assets 0.2 - 1.2
Restructuring costs (0.2) 0.3 0.1
Insurance claim - South Deep - - (0.7)
Gain on financial instrument 0.3 52.6 -
Impairment of investments (0.2) (0.6) -
Total exceptional items 3.9 58.3 (22.7)
Taxation (0.1) (7.8) -
Net exceptional items after taxation and
minorities 3.8 50.5 (22.7)
Net earnings 43.7 187.1 140.4
Net earnings per share (cents) 6 27 21
Diluted earnings per share (cents) 6 26 21
Headline earnings 39.9 182.0 162.5
Headline earnings per share (cents) 6 26 24
Net earnings excluding gains and losses on
foreign exchange, financial
instruments, exceptional items and share of
profit/(loss) of associates after 43.5 135.4 146.3
taxation
Net earnings per share excluding gains and
losses on foreign exchange,
financial instruments, exceptional items and
share of profit/(loss) of associates 6 20 21
after taxation (cents)
South African rand/United States dollar
conversion rate 7.50 7.49 9.93
South African rand/Australian dollar
conversion rate 6.76 6.80 6.59
Gold sold - managed oz (000) 881 983 946
Gold price received US$/oz 1,102 1,096 906
Total cash cost US$/oz 703 613 471
Nine months to
March March
UNITED STATES DOLLARS 2010 2009
Revenue 2,995.1 2,326.1
Operating costs, net 1,832.5 1,439.1
- Operating costs 1,851.0 1,456.6
- Gold inventory change (18.5) (17.5)
Operating profit 1,162.6 887.0
Amortisation and depreciation 456.5 335.7
Net operating profit 706.1 551.3
Net interest paid (15.4) (47.9)
Share of gain/(loss) of associates after taxation 4.2 (14.2)
(Loss)/gain on foreign exchange (9.3) 18.4
(Loss)/gain on financial instruments (27.8) (13.8)
Share-based payments (47.6) (30.9)
Other (16.7) (12.4)
Exploration (56.2) (36.9)
Profit before taxation and exceptional items 537.3 413.6
Exceptional gain/(loss) 147.5 (10.2)
Profit before taxation 684.8 403.4
Mining and income taxation 265.4 185.2
- Normal taxation 117.3 86.6
- Royalties 42.4 26.5
- Deferred taxation 105.7 72.1
Net profit 419.4 218.2
Attributable to:
- Owners of the parents 359.5 199.8
- Non-controlling interest 59.9 18.4
Exceptional items:
Profit/(loss) on sale of investments 103.0 (23.2)
Profit on sale of assets 0.3 1.1
Restructuring costs (0.6) (2.4)
Insurance claim - South Deep - 14.3
Gain on financial instrument 52.9 -
Impairment of investments (8.1) -
Total exceptional items 147.5 (10.2)
Taxation (22.6) (5.2)
Net exceptional items after taxation and minorities 124.9 (15.4)
Net earnings 359.5 199.8
Net earnings per share (cents) 51 30
Diluted earnings per share (cents) 50 29
Headline earnings 279.6 222.1
Headline earnings per share (cents) 40 33
Net earnings excluding gains and losses on foreign
exchange, financial
instruments, exceptional items and share of
profit/(loss) of associates after 258.8 221.8
taxation
Net earnings per share excluding gains and losses on
foreign exchange,
financial instruments, exceptional items and share of
profit/(loss) of associates 37 33
after taxation (cents)
South African rand/United States dollar conversion rate 7.60 9.16
South African rand/Australian dollar conversion rate 6.68 6.75
Gold sold - managed oz (000) 2,853 2,702
Gold price received US$/oz 1,050 861
Total cash cost US$/oz 632 518
Statement of comprehensive income
International Financial Reporting Standards Basis
Quarter
March December March
UNITED STATES DOLLARS 2010 2009 2009
Net profit for the quarter 65.6 210.1 151.2
Other comprehensive income/(expenses),
net of tax 160.6 (138.0) 128.5
Marked to market valuation of listed
investments (17.9) (1.9) 116.2
Currency translation adjustments and other 177.3 (134.9) 12.3
Share of equity investee`s other
comprehensive income - 0.1 -
Deferred taxation on marked to market
valuation of listed investments 1.2 (1.3) -
Total comprehensive income/(expenses)
for the quarter 226.2 72.1 279.7
Attributable to:
- Owners of the parent 189.9 60.4 279.0
- Non-controlling interest 36.3 11.7 0.7
226.2 72.1 279.7
Nine months to
March March
UNITED STATES DOLLARS 2010 2009
Net profit for the quarter 419.4 218.2
Other comprehensive income/(expenses), net of tax 395.3 (773.1)
Marked to market valuation of listed investments (45.1) (78.6)
Currency translation adjustments and other 428.8 (704.8)
Share of equity investee`s other comprehensive income 1.6 10.3
Deferred taxation on marked to market valuation of
listed investments 10.0 -
Total comprehensive income/(expenses) for the quarter 814.7 (554.9)
Attributable to:
- Owners of the parent 725.0 (509.7)
- Non-controlling interest 89.7 (45.2)
814.7 (554.9)
Reconciliation of headline earnings with net earnings
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
March December March
2010 2009 2009
Net earnings 315.7 1,408.6 1,306.6
(Profit)/loss on sale of investments (24.4) (30.0) 213.6
Taxation effect on sale of investments - - -
Profit on sale of assets (0.9) (0.1) (11.0)
Taxation effect of profit on sale of assets 0.3 0.1 2.4
Impairment of investments and other 1.3 2.8 -
Headline earnings 292.0 1,381.4 1,511.6
Headline earnings per share - cents 41 196 225
Based on headline earnings as given above
divided by 705,524,513 for March 2010
(705,213,542 for December 2009 and
March 2009 - 669,602,482) being the weighted
average number of ordinary shares in issue.
UNITED STATES DOLLARS
March December March
2010 2009 2009
Net earnings 43.7 187.1 140.4
(Profit)/loss on sale of investments (3.8) (6.0) 23.3
Taxation effect on sale of investments - 0.3 -
Profit on sale of assets (0.2) - (1.2)
Taxation effect of profit on sale of assets - - 0.3
Impairment of investments and other 0.2 0.6 (0.3)
Headline earnings 39.9 182.0 162.5
Headline earnings per share - cents 6 26 24
Based on headline earnings as given above
divided by 705,524,513 for
March 2010 (705,213,542 for December 2009
and March 2009 - 669,602,482) being the weighted
average number of ordinary shares in issue.
Balance sheet
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
March June
2010 2009
Property, plant and equipment 51,881.0 48,337.4
Goodwill 4,458.9 4,458.9
Non-current assets 936.6 886.7
Investments 1,398.9 2,970.8
Current assets 8,398.2 8,548.1
- Other current assets 5,573.3 5,744.2
- Cash and deposits 2,824.9 2,803.9
Total assets 67,073.6 65,201.9
Shareholders` equity 44,429.0 42,669.4
Deferred taxation 6,761.6 6,128.8
Long-term loans 3,815.2 6,334.3
Environmental rehabilitation provisions 2,338.0 2,267.9
Post-retirement health care provisions 21.8 20.5
Other long-term provisions 28.5 31.2
Current liabilities 9,679.5 7,749.8
- Other current liabilities 4,578.5 5,188.6
- Current portion of long-term loans 5,101.0 2,561.2
Total equity and liabilities 67,073.6 65,201.9
South African rand/US dollar conversion rate
South African rand/Australian dollar conversion rate
UNITED STATES DOLLARS
March June
2010 2009
Property, plant and equipment 7,058.6 5,997.2
Goodwill 606.7 553.2
Non-current assets 127.4 110.0
Investments 190.3 368.6
Current assets 1,142.6 1,060.6
- Other current assets 758.3 712.7
- Cash and deposits 384.3 347.9
Total assets 9,125.6 8,089.6
Shareholders` equity 6,044.7 5,294.0
Deferred taxation 919.9 760.4
Long-term loans 519.1 785.9
Environmental rehabilitation provisions 318.1 281.4
Post-retirement health care provisions 3.0 2.5
Other long-term provisions 3.9 3.9
Current liabilities 1,316.9 961.5
- Other current liabilities 622.9 643.7
- Current portion of long-term loans 694.0 317.8
Total equity and liabilities 9,125.6 8,089.6
South African rand/US dollar conversion rate 7.35 8.06
South African rand/Australian dollar conversion rate 6.74 6.43
Debt maturity ladder
Figures are in millions unless otherwise stated
F2010 F2011 F2012
Available loan facilities (committed and
uncommitted), including preference shares
and commercial paper
Rand million 3,520.0 2,394.7 -
US dollar million 311.0 10.9 512.9
Dollar debt translated to rand 2,285.9 80.1 3,769.8
Total (R`m) 5,805.9 2,474.8 3,769.8
Utilisation - Loan facilities (committed
and uncommitted), including preference
shares and commercial paper
Rand million 2,626.0 2,394.7 -
US dollar million - 10.9 442.9
Dollar debt translated to rand - 80.1 3,255.3
Total (R`m) 2,626.0 2,474.8 3,255.3
Long-term loans per balance sheet (R`m)
Current portion of long-term loans per
balance sheet (R`m)
Total loans per balance sheet (R`m)
F2013 Total
to F2017
Available loan facilities (committed and uncommitted),
including preference shares and commercial paper
Rand million 3,000.0 8,914.7
US dollar million 76.2 911.0
Dollar debt translated to rand 560.1 6,695.9
Total (R`m) 3,560.1 15,610.6
Utilisation - Loan facilities (committed and
uncommitted), including preference shares and
commercial paper
Rand million - 5,020.7
USdollar million 76.2 530.0
Dollar debt translated to rand 560.1 3,895.5
Total (R`m) 560.1 8,916.2
Long-term loans per balance sheet (R`m) 3,815.2
Current portion of long-term loans per balance sheet (R`m) 5,101.0
Total loans per balance sheet (R`m) 8,916.2
Exchange rate: US$1 = R7.35 being the closing rate at the end of the March 2010
quarter.
Condensed statement of changes in equity
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
Share capital and Other Retained
MARCH 2010 QUARTER premium reserves earnings
Balance as at 31 December 2009 31,503.5 (1,252.6) 11,727.9
Total comprehensive
(expenses)/income - (550.6) 315.7
Profit for the quarter - - 315.7
Other comprehensive expenses - (550.6) -
Dividends paid - - (353.0)
Share-based payments - 120.9 -
Exercise of employee share options 11.5 - -
Balance as at 31 March 2010 31,515.0 (1,682.3) 11,690.6
Non-controlling Total
MARCH 2010 QUARTER interest equity
Balance as at 31 December 2009 2,746.4 44,725.2
Total comprehensive (expenses)/income 159.3 (75.6)
Profit for the quarter 164.8 480.5
Other comprehensive expenses (5.5) (556.1)
Dividends paid - (353.0)
Share-based payments - 120.9
Exercise of employee share options - 11.5
Balance as at 31 March 2010 2,905.7 44,429.0
UNITED STATES DOLLARS
Share capital Other Retained
MARCH 2010 QUARTER and premium reserves earnings
Balance as at 31 December 2009 4,594.8 (708.3) 1,600.9
Total comprehensive income - 146.2 43.7
Profit for the quarter - - 43.7
Other comprehensive income - 146.2 -
Dividends paid - - (45.5)
Share-based payments - 16.1 -
Exercise of employee share options 1.5 - -
Balance as at 31 March 2010 4,596.3 (546.0) 1,599.1
Non-controlling Total
MARCH 2010 QUARTER interest equity
Balance as at 31 December 2009 359.0 5,846.4
Total comprehensive income 36.3 226.2
Profit for the quarter 21.9 65.6
Other comprehensive income 14.4 160.6
Dividends paid - (45.5)
Share-based payments - 16.1
Exercise of employee share options - 1.5
Balance as at 31 March 2010 395.3 6,044.7
SOUTH AFRICAN RAND
Share capital Other Retained
MARCH 2009 QUARTER and premium reserves earnings
Balance as at 31 December 2008 31,380.9 596.4 9,059.1
Total comprehensive income - 1,028.4 1,306.6
Profit for the quarter - - 1,306.6
Other comprehensive
income/(expenses) - 1,028.4 -
Dividends paid - - (196.1)
Share-based payments - 95.2 -
Transactions with minority interest - - -
Exercise of employee share options 55.2 - -
Balance as at 31 March 2009 31,436.1 1,720.0 10,169.6
Non-controlling Total
MARCH 2009 QUARTER interest equity
Balance as at 31 December 2008 2,246.0 43,282.4
Total comprehensive income 101.2 2,436.2
Profit for the quarter 102.7 1,409.3
Other comprehensive income/(expenses) (1.5) 1,026.9
Dividends paid - (196.1)
Share-based payments - 95.2
Transactions with minority interest 57.4 57.4
Exercise of employee share options - 55.2
Balance as at 31 March 2009 2,404.6 45,730.3
UNITED STATES DOLLARS
Share capital Other Retained
MARCH 2009 QUARTER and premium reserves earnings
Balance as at 31 December 2008 4,580.4 (1,589.5) 1,266.0
Total comprehensive income - 138.6 140.4
Profit for the quarter - - 140.4
Other comprehensive
income/(expenses) - 138.6 -
Dividends paid - - (19.3)
Share-based payments - 9.5 -
Transactions with minority interest - - -
Exercise of employee share options 5.9 - -
Balance as at 31 March 2009 4,586.3 (1,441.4) 1,387.1
Non-controlling Total
MARCH 2009 QUARTER interest equity
Balance as at 31 December 2008 233.0 4,489.9
Total comprehensive income 0.7 279.7
Profit for the quarter 10.8 151.2
Other comprehensive income/(expenses) (10.1) 128.5
Dividends paid - (19.3)
Share-based payments - 9.5
Transactions with minority interest 17.8 17.8
Exercise of employee share options - 5.9
Balance as at 31 March 2009 251.5 4,783.5
Cash flow statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
March December March
SOUTH AFRICAN RAND 2010 2009 2009
Cash flows from operating activities 2,583.5 2,105.1 2,947.2
Profit before tax and exceptional items 1,005.4 1,981.5 2,555.7
Exceptional items 22.3 432.0 (203.1)
Amortisation and depreciation 1,139.3 1,156.0 1,140.9
Change in working capital 705.8 (949.2) (211.8)
Taxation paid (390.7) (123.4) (445.2)
Other non-cash items 101.4 (391.8) 110.7
Dividends paid (353.0) - (196.1)
Ordinary shareholders (353.0) - (196.1)
Cash flows from investing activities (1,754.2) (2,008.1) (1,449.8)
Capital expenditure - additions (1,871.8) (1,967.3) (1,700.7)
Capital expenditure - proceeds on disposal 0.8 2.5 10.2
Royalty termination - - -
Purchase of investments (47.3) (89.1) 46.9
Proceeds on the disposal of investments 172.0 52.7 200.0
Environmental and post-retirement
health care payments (7.9) (6.9) (6.2)
Cash flows from financing activities 577.8 (631.2) 94.4
Loans received 2,662.0 3,800.0 4,947.4
Loans repaid (2,095.7) (4,455.9) (4,972.8)
Minority shareholders loans received - - 64.6
Shares issued 11.5 24.7 55.2
Net cash inflow/(outflow) 1,054.1 (534.2) 1,395.7
Translation adjustment (57.4) 84.6 87.6
Cash at beginning of period 1,828.2 2,277.8 1,053.6
Cash at end of period 2,824.9 1,828.2 2,536.9
Nine months to
March March
SOUTH AFRICAN RAND 2010 2009
Cash flows from operating activities 5,951.6 4,702.6
Profit before tax and exceptional items 4,082.5 3,787.9
Exceptional items 1,121.1 (93.7)
Amortisation and depreciation 3,469.1 3,075.2
Change in working capital (750.0) (1,058.0)
Taxation paid (1,218.7) (1,490.3)
Other non-cash items (752.4) 481.5
Dividends paid (917.1) (980.9)
Ordinary shareholders (917.1) (980.9)
Cash flows from investing activities (5,544.2) (5,707.9)
Capital expenditure - additions (5,585.4) (5,858.7)
Capital expenditure - proceeds on disposal 6.3 12.6
Royalty termination (1,998.9) -
Purchase of investments (433.7) (36.4)
Proceeds on the disposal of investments 2,491.0 200.0
Environmental and post-retirement health care
payments (23.5) (25.4)
Cash flows from financing activities 590.6 2,360.7
Loans received 9,831.4 9,067.8
Loans repaid (9,290.2) (6,838.8)
Minority shareholders loans received - 64.6
Shares issued 49.4 67.1
Net cash inflow/(outflow) 80.9 374.5
Translation adjustment (59.9) 155.1
Cash at beginning of period 2,803.9 2,007.3
Cash at end of period 2,824.9 2,536.9
Quarter
March December March
UNITED STATES DOLLARS 2010 2009 2009
Cash flows from operating activities 344.8 279.2 328.1
Profit before tax and exceptional items 135.0 262.3 273.3
Exceptional items 3.9 58.3 (22.7)
Amortisation and depreciation 152.0 154.4 115.4
Change in working capital 91.6 (125.5) (19.1)
Taxation paid (50.3) (17.8) (29.2)
Other non-cash items 12.6 (52.5) 10.4
Dividends paid (45.5) - (19.3)
Ordinary shareholders (45.5) - (19.3)
Cash flows from investing activities (234.1) (267.9) (140.2)
Capital expenditure - additions (249.5) (262.1) (166.0)
Capital expenditure - proceeds on disposal 0.1 0.3 1.1
Royalty termination - - -
Purchase of investments (6.5) (12.4) 3.5
Proceeds on the disposal of investments 22.9 7.1 21.8
Environmental and post-retirement health
care payments (1.1) (0.8) (0.6)
Cash flows from financing activities 77.5 (83.2) 11.5
Loans received 354.9 509.1 496.9
Loans repaid (278.9) (595.6) (498.0)
Minority shareholders loans received - - 6.7
Shares issued 1.5 3.3 5.9
Net cash inflow/(outflow) 142.7 (71.9) 180.1
Translation adjustment 2.6 1.8 (24.0)
Cash at beginning of period 239.0 309.1 109.3
Cash at end of period 384.3 239.0 265.4
Nine months to
March March
UNITED STATES DOLLARS 2010 2009
Cash flows from operating activities 789.3 513.5
Profit before tax and exceptional items 537.3 413.6
Exceptional items 147.5 (10.2)
Amortisation and depreciation 456.5 335.7
Change in working capital (98.7) (115.5)
Taxation paid (154.3) (162.7)
Other non-cash items (99.0) 52.6
Dividends paid (118.1) (121.2)
Ordinary shareholders (118.1) (121.2)
Cash flows from investing activities (721.0) (625.2)
Capital expenditure - additions (734.9) (639.6)
Capital expenditure - proceeds on disposal 0.8 1.4
Royalty termination (257.1) -
Purchase of investments (56.1) (6.0)
Proceeds on the disposal of investments 329.4 21.8
Environmental and post-retirement health care payments (3.1) (2.8)
Cash flows from financing activities 62.5 307.9
Loans received 1,297.0 1,004.4
Loans repaid (1,241.0) (710.5)
Minority shareholders loans received - 6.7
Shares issued 6.5 7.3
Net cash inflow/(outflow) 12.7 75.0
Translation adjustment 23.7 (60.5)
Cash at beginning of period 347.9 250.9
Cash at end of period 384.3 265.4
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 outstanding at
31 March 2010 are described below.
South Africa forward cover contracts*
South African rand forward cover contracts were taken out to cover commitments
of the South African operations in various currencies. Outstanding at the end of
March 2010 were the following contracts:
US$/ZAR - US$15 million in total, with a negative marked to market value of
US$1 million.
Diesel financial instruments*
Ghana
The West African operations had 18 million litres of Asian style ICE Gasoil
call options remaining at the end of December 2009 with a strike price of
US$0.90 per litre, which equates to a Brent crude price of approximately US$92
per barrel, with final expiry on 28 February 2010. These options were closed
out on expiry at a negligible gain.
Australia
The Australian operations had 8 million litres of Asian style Singapore 0.5
Gasoil call options remaining at the end of December 2009 with a strike price
of US$0.9128 per litre, with a final expiry on 28 February 2010. These options
were closed out on expiry at a negligible loss.
Copper financial instruments*
Peru
During June 2009, 8,705 tons or approximately 50 per cent 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 the remaining 1,890 tons sold forward and the
remaining 1,890 tons under the zero cost collar outstanding at the end of March
2010 was negative by US$8 million.
* Do not qualify for hedge accounting and will be accounted for as derivative
financial instruments in the income statement.
Operating and financial results
SOUTH AFRICAN RAND South Africa Region
Total
Mine
Operations Total Driefontein
Operating Results
Ore milled/treated
(000 tons)
March 2010 14,263 3,580 1,402
December 2009 14,017 3,833 1,548
Financial year to date 41,839 11,184 4,490
Yield (grams per ton)
March 2010 1.9 3.4 3.3
December 2009 2.2 4.2 3.8
Financial year to date 2.1 4.0 3.6
Gold produced (kilograms)
March 2010 27,391 12,297 4,575
December 2009 30,529 16,257 5,825
Financial year to date 88,652 44,940 16,293
Gold sold (kilograms)
March 2010 27,405 12,297 4,575
December 2009 30,576 16,257 5,825
Financial year to date 88,731 44,940 16,293
Gold price received
(Rand per kilogram)
March 2010 265,641 266,813 267,016
December 2009 263,828 263,400 262,747
Financial year to date 256,533 255,972 255,889
Total cash cost
(Rand per kilogram)
March 2010 169,538 214,467 195,650
December 2009 147,648 165,707 154,678
Financial year to date 154,303 177,899 166,077
Notional cash expenditure
(Rand per kilogram)
March 2010 241,860 310,490 258,907
December 2009 216,830 242,050 208,103
Financial year to date 221,417 257,490 222,120
Operating costs
(Rand per ton)
March 2010 334 763 660
December 2009 333 730 606
Financial year to date 336 742 627
Financial Results
(Rand million)
Revenue
March 2010 7,279.9 3,281.0 1,221.6
December 2009 8,066.9 4,282.1 1,530.5
Financial year to date 22,762.6 11,503.4 4,169.2
Operating costs, net
March 2010 4,709.8 2,732.8 925.0
December 2009 4,589.0 2,798.2 938.2
Financial year to date 13,927.4 8,299.4 2,813.3
- Operating costs
March 2010 4,758.3 2,732.8 925.0
December 2009 4,665.4 2,798.2 938.2
Financial year to date 14,067.8 8,299.4 2,813.3
- Gold inventory change
March 2010 (48.5) - -
December 2009 (76.4) - -
Financial year to date (140.4) - -
Operating profit
March 2010 2,570.1 548.2 296.6
December 2009 3,477.9 1,483.9 592.3
Financial year to date 8,835.2 3,204.0 1,355.9
Amortisation of mining
assets
March 2010 1,105.0 536.2 139.1
December 2009 1,120.2 612.7 147.1
Financial year to date 3,363.9 1,755.3 431.7
Net operating profit
March 2010 1,465.1 12.0 157.5
December 2009 2,357.7 871.2 445.2
Financial year to date 5,471.3 1,448.7 924.2
Other (expenses)/income
March 2010 (225.7) (105.7) (14.0)
December 2009 (235.0) (100.7) (26.9)
Financial year to date (758.8) (283.7) (63.8)
Profit/(loss)
before taxation
March 2010 1,239.4 (93.7) 143.5
December 2009 2,122.7 770.5 418.3
Financial year to date 4,712.5 1,165.0 860.4
Mining and income taxation
March 2010 542.6 1.7 38.7
December 2009 758.3 252.6 146.1
Financial year to date 1,801.8 418.7 280.7
- Normal taxation
March 2010 139.8 (21.9) (16.9)
December 2009 343.5 118.7 100.8
Financial year to date 658.0 137.4 119.5
- Royalties
March 2010 117.2 12.9 9.3
December 2009 107.5 - -
Financial year to date 322.2 12.9 9.3
- Deferred taxation
March 2010 285.6 10.7 46.3
December 2009 307.3 133.9 45.3
Financial year to date 821.6 268.4 151.9
Profit/(loss) before
exceptional items
March 2010 696.8 (95.4) 104.8
December 2009 1,364.4 517.9 272.2
Financial year to date 2,910.7 746.3 579.7
Exceptional items
March 2010 (0.9) (0.9) -
December 2009 3.5 3.4 1.0
Financial year to date (0.6) (0.8) 1.8
Net profit/(loss)
March 2010 695.9 (96.3) 104.8
December 2009 1,367.9 521.3 273.2
Financial year to date 2,910.1 745.5 581.5
Net profit/(loss)
excluding gains and
losses on
foreign exchange,
financial instruments
and exceptional items
March 2010 713.5 (96.1) 104.8
December 2009 1,398.4 519.2 272.6
Financial year to date 3,058.8 745.6 580.4
Capital expenditure
March 2010 1,866.5 1,085.3 259.5
December 2009 1,954.2 1,136.8 274.0
Financial year to date 5,561.3 3,272.2 805.7
South Africa Region
Kloof Beatrix South Deep
Operating Results
Ore milled/treated
(000 tons)
March 2010 1,028 726 424
December 2009 1,073 817 395
Financial year to date 3,142 2,334 1,218
Yield (grams per ton)
March 2010 3.3 3.5 4.2
December 2009 4.6 4.1 5.6
Financial year to date 4.2 4.0 5.0
Gold produced (kilograms)
March 2010 3,344 2,577 1,801
December 2009 4,887 3,318 2,227
Financial year to date 13,255 9,332 6,060
Gold sold (kilograms)
March 2010 3,344 2,577 1,801
December 2009 4,887 3,318 2,227
Financial year to date 13,255 9,332 6,060
Gold price received
(Rand per kilogram)
March 2010 266,477 267,055 266,574
December 2009 262,983 264,527 264,347
Financial year to date 255,383 256,344 256,914
Total cash cost
(Rand per kilogram)
March 2010 237,978 206,092 230,594
December 2009 169,306 167,722 183,655
Financial year to date 184,172 177,647 196,353
Notional cash expenditure
(Rand per kilogram)
March 2010 327,482 274,466 461,521
December 2009 233,804 220,766 380,647
Financial year to date 251,241 233,691 402,904
Operating costs
(Rand per ton)
March 2010 808 758 1,007
December 2009 804 705 1,066
Financial year to date 809 736 1,007
Financial Results
(Rand million)
Revenue
March 2010 891.1 688.2 480.1
December 2009 1,285.2 877.7 588.7
Financial year to date 3,385.1 2,392.2 1,556.9
Operating costs, net
March 2010 830.5 550.2 427.1
December 2009 862.7 576.1 421.2
Financial year to date 2,541.4 1,717.7 1,227.0
- Operating costs
March 2010 830.5 550.2 427.1
December 2009 862.7 576.1 421.2
Financial year to date 2,541.4 1,717.7 1,227.0
- Gold inventory change
March 2010 - - -
December 2009 - - -
Financial year to date - - -
Operating profit
March 2010 60.6 138.0 53.0
December 2009 422.5 301.6 167.5
Financial year to date 843.7 674.5 329.9
Amortisation of mining
assets
March 2010 167.0 118.3 111.8
December 2009 208.1 143.0 114.5
Financial year to date 590.8 404.8 328.0
Net operating profit
March 2010 (106.4) 19.7 (58.8)
December 2009 214.4 158.6 53.0
Financial year to date 252.9 269.7 1.9
Other (expenses)/income
March 2010 (21.1) (12.1) (58.5)
December 2009 (21.5) (12.6) (39.7)
Financial year to date (58.9) (33.7) (127.3)
Profit/(loss)
before taxation
March 2010 (127.5) 7.6 (117.3)
December 2009 192.9 146.0 13.3
Financial year to date 194.0 236.0 (125.4)
Mining and income taxation
March 2010 3.6 6.4 (47.0)
December 2009 45.7 55.5 5.3
Financial year to date 90.6 97.7 (50.3)
- Normal taxation
March 2010 (4.8) (0.2) -
December 2009 17.6 0.3 -
Financial year to date 16.9 1.0 -
- Royalties
March 2010 1.4 1.3 0.9
December 2009 - - -
Financial year to date 1.4 1.3 0.9
- Deferred taxation
March 2010 7.0 5.3 (47.9)
December 2009 28.1 55.2 5.3
Financial year to date 72.3 95.4 (51.2)
Profit/(loss) before
exceptional items
March 2010 (131.1) 1.2 (70.3)
December 2009 147.2 90.5 8.0
Financial year to date 103.4 138.3 (75.1)
Exceptional items
March 2010 - 0.8 (1.7)
December 2009 2.4 - -
Financial year to date 1.9 (2.8) (1.7)
Net profit/(loss)
March 2010 (131.1) 2.0 (72.0)
December 2009 149.6 90.5 8.0
Financial year to date 105.3 135.5 (76.8)
Net profit/(loss)
excluding gains and
losses on
foreign exchange,
financial instruments
and exceptional items
March 2010 (131.1) 1.2 (71.0)
December 2009 148.1 90.5 8.0
Financial year to date 104.1 136.9 (75.8)
Capital expenditure
March 2010 264.6 157.1 404.1
December 2009 279.9 156.4 426.5
Financial year to date 788.8 463.1 1,214.6
Operating and financial results
South
SOUTH AFRICAN RAND West Africa Region America
Region
Ghana Peru
Cerro
Total Tarkwa Damang Corona
Operating Results
Ore milled/treated
(000 tons)
March 2010 7,296 5,942 1,354 1,554
December 2009 6,574 5,452 1,122 1,564
Financial year to date 20,227 16,524 3,703 4,656
Yield (grams per ton)
March 2010 1.0 0.9 1.2 2.2
December 2009 1.0 1.0 1.3 2.0
Financial year to date 1.0 1.0 1.3 2.0
Gold produced
(kilograms)
March 2010 7,054 5,374 1,680 3,428
December 2009 6,773 5,369 1,404 3,062
Financial year to date 20,873 16,189 4,684 9,242
Gold sold (kilograms)
March 2010 7,054 5,374 1,680 3,442
December 2009 6,773 5,369 1,404 3,109
Financial year to date 20,873 16,189 4,684 9,321
Gold price received
(Rand per kilogram)
March 2010 268,599 268,013 270,476 256,450
December 2009 265,303 266,288 261,538 262,432
Financial year to date 258,655 258,849 257,985 254,393
Total cash cost
(Rand per kilogram)
March 2010 141,877 136,156 160,179 73,068
December 2009 126,369 118,719 155,627 90,897
Financial year to date 132,453 125,208 157,494 83,392
Notional cash
expenditure
(Rand per kilogram)
March 2010 188,730 188,742 188,690 128,238
December 2009 178,459 175,321 190,456 148,530
Financial year to date 179,232 179,153 179,505 141,625
Operating costs
(Rand per ton)
March 2010 134 122 187 166
December 2009 135 122 195 174
Financial year to date 138 126 189 165
Financial Results
(Rand million)
Revenue
March 2010 1,894.7 1,440.3 454.4 882.7
December 2009 1,796.9 1,429.7 367.2 815.9
Financial year
to date 5,398.9 4,190.5 1,208.4 2,371.2
Operating costs, net
March 2010 987.0 724.0 263.0 253.9
December 2009 824.0 611.9 212.1 276.7
Financial year to date 2,713.7 1,993.1 720.6 772.0
- Operating costs
March 2010 978.6 725.5 253.1 257.5
December 2009 885.9 667.2 218.7 271.8
Financial year to date 2,783.8 2,082.5 701.3 768.1
- Gold inventory
change
March 2010 8.4 (1.5) 9.9 (3.6)
December 2009 (61.9) (55.3) (6.6) 4.9
Financial year to date (70.1) (89.4) 19.3 3.9
Operating profit
March 2010 907.7 716.3 191.4 628.8
December 2009 972.9 817.8 155.1 539.2
Financial year to date 2,685.2 2,197.4 487.8 1,599.2
Amortisation of
mining assets
March 2010 234.1 204.3 29.8 103.0
December 2009 228.5 198.6 29.9 98.2
Financial year to date 679.0 589.7 89.3 309.9
Net operating profit
March 2010 673.6 512.0 161.6 525.8
December 2009 744.4 619.2 125.2 441.0
Financial year to date 2,006.2 1,607.7 398.5 1,289.3
Other (expenses)/income
March 2010 (30.0) (24.4) (5.6) (68.4)
December 2009 (21.8) (14.1) (7.7) (104.4)
Financial year to date (72.7) (54.6) (18.1) (367.5)
Profit/(loss) before
taxation
March 2010 643.6 487.6 156.0 457.4
December 2009 722.6 605.1 117.5 336.6
Financial year to date 1,933.5 1,553.1 380.4 921.8
Mining and income
taxation
March 2010 229.0 172.3 56.7 219.8
December 2009 247.1 204.4 42.7 147.5
Financial year to date 673.7 534.7 139.0 436.8
- Normal taxation
March 2010 118.4 84.0 34.4 43.3
December 2009 102.8 74.7 28.1 122.0
Financial year to date 274.7 179.7 95.0 245.9
- Royalties
March 2010 61.6 47.5 14.1 13.7
December 2009 53.9 42.9 11.0 24.3
Financial year to date 166.7 130.0 36.7 57.3
- Deferred taxation
March 2010 49.0 40.8 8.2 162.8
December 2009 90.4 86.8 3.6 1.2
Financial year to date 232.3 225.0 7.3 133.6
Profit/(loss) before
exceptional items
March 2010 414.6 315.3 99.3 237.6
December 2009 475.5 400.7 74.8 189.1
Financial year to date 1,259.8 1,018.4 241.4 485.0
Exceptional items
March 2010 - - - -
December 2009 - - - 0.1
Financial year to date - - - 0.2
Net profit/(loss)
March 2010 414.6 315.3 99.3 237.6
December 2009 475.5 400.7 74.8 189.2
Financial year to date 1,259.8 1,018.4 241.4 485.2
Net profit/(loss)
excluding gains and
losses on foreign
exchange, financial
instruments and
exceptional items
March 2010 414.6 315.3 99.3 250.5
December 2009 476.8 401.9 74.9 224.0
Financial year to date 1,262.2 1,020.7 241.5 631.1
Capital expenditure
March 2010 352.7 288.8 63.9 182.1
December 2009 322.8 274.1 48.7 183.0
Financial year to date 957.3 817.8 139.5 540.8
SOUTH AFRICAN RAND Australasia Region #
Australia
Total St Ives Agnew
Operating Results
Ore milled/treated
(000 tons)
March 2010 1,833 1,619 214
December 2009 2,046 1,796 250
Financial year to date 5,772 5,073 699
Yield (grams per ton)
March 2010 2.5 2.1 5.9
December 2009 2.2 1.7 5.8
Financial year to date 2.4 1.9 5.9
Gold produced
(kilograms)
March 2010 4,612 3,342 1,270
December 2009 4,437 2,982 1,455
Financial year to date 13,597 9,443 4,154
Gold sold (kilograms)
March 2010 4,612 3,342 1,270
December 2009 4,437 2,982 1,455
Financial year to date 13,597 9,443 4,154
Gold price received
(Rand per kilogram)
March 2010 264,853 264,692 265,276
December 2009 264,142 263,380 265,704
Financial year to date 256,608 256,783 256,211
Total cash cost
(Rand per kilogram)
March 2010 164,050 176,361 131,654
December 2009 153,730 174,413 111,340
Financial year to date 158,469 175,432 119,909
Notional cash
expenditure
(Rand per kilogram)
March 2010 224,588 239,707 184,803
December 2009 230,133 251,140 187,079
Financial year to date 221,188 238,960 180,790
Operating costs
(Rand per ton)
March 2010 431 381 810
December 2009 347 299 689
Financial year to date 384 337 727
Financial Results
(Rand million)
Revenue
March 2010 1,221.5 884.6 336.9
December 2009 1,172.0 785.4 386.6
Financial year
to date 3,489.1 2,424.8 1,064.3
Operating costs, net
March 2010 736.1 566.4 169.7
December 2009 690.1 532.2 157.9
Financial year to date 2,142.3 1,643.4 498.9
- Operating costs
March 2010 789.4 616.1 173.3
December 2009 709.5 537.2 172.3
Financial year to date 2,216.5 1,708.0 508.5
- Gold inventory
change
March 2010 (53.3) (49.7) (3.6)
December 2009 (19.4) (5.0) (14.4)
Financial year to date (74.2) (64.6) (9.6)
Operating profit
March 2010 485.4 318.2 167.2
December 2009 481.9 253.2 228.7
Financial year to date 1,346.8 781.4 565.4
Amortisation of
mining assets
March 2010 231.7
December 2009 180.8
Financial year to date 619.7
Net operating profit
March 2010 253.7
December 2009 301.1
Financial year to date 727.1
Other (expenses)/income
March 2010 (21.6)
December 2009 (8.1)
Financial year to date (34.9)
Profit/(loss) before
taxation
March 2010 232.1
December 2009 293.0
Financial year to date 692.2
Mining and income
taxation
March 2010 92.1
December 2009 111.1
Financial year to date 272.6
- Normal taxation
March 2010 -
December 2009 -
Financial year to date -
- Royalties
March 2010 29.0
December 2009 29.3
Financial year to date 85.3
- Deferred taxation
March 2010 63.1
December 2009 81.8
Financial year to date 187.3
Profit/(loss) before
exceptional items
March 2010 140.0
December 2009 181.9
Financial year to date 419.6
Exceptional items
March 2010 -
December 2009 -
Financial year to date -
Net profit/(loss)
March 2010 140.0
December 2009 181.9
Financial year to date 419.6
Net profit/(loss)
excluding gains and
losses on foreign
exchange, financial
instruments and
exceptional items
March 2010 144.5
December 2009 178.4
Financial year to date 419.9
Capital expenditure
March 2010 246.4 185.0 61.4
December 2009 311.6 211.7 99.9
Financial year to date 791.0 548.5 242.5
# As a significant portion of the acquisition price was allocated to tenements
of St Ives and Agnew based on endowment ounces and also as these two Australian
operations are entitled to transfer and then off-set tax losses from one
company to another, it is not meaningful to split the income statement below
operating profit.
Operating and financial results
UNITED STATES DOLLARS
Total South Africa Region
Mine Total Driefontein Kloof
Operations
Operating Results
Ore milled/treated
(000 tons)
March 2010 14,263 3,580 1,402 1,028
December 2009 14,017 3.833 1,548 1,073
Financial year to date 41,839 11,184 4,490 3,142
Yield (ounces per ton)
March 2010 0.062 0.110 0.105 0.105
December 2009 0.070 0.136 0.121 0.146
Financial year to date 0.068 0.129 0.117 0.136
Gold produced
(000 ounces)
March 2010 880.2 395.4 147.1 107.5
December 2009 982.1 522.7 187.3 157.1
Financial year
to date 2,850.2 1,444.9 523.8 426.2
Gold sold
(000 ounces)
March 2010 880.6 395.4 147.1 107.5
December 2009 983.6 522.7 187.3 157.1
Financial year to date 2,852.8 1,444.9 523.8 426.2
Gold price received
(dollars per ounce)
March 2010 1,102 1,107 1,107 1,105
December 2009 1,096 1,094 1,091 1,092
Financial year to date 1,050 1,048 1,047 1,045
Total cash cost
(dollars per ounce)
March 2010 703 889 811 987
December 2009 613 688 642 703
Financial year to date 631 728 680 754
Notional cash
expenditure
(dollars per ounce)
March 2010 1,003 1,288 1,074 1,358
December 2009 900 1,005 864 971
Financial year to date 906 1,054 909 1,028
Operating costs
(dollars per ton)
March 2010 44 102 88 108
December 2009 44 97 81 107
Financial year to date 44 98 82 106
Financial Results
($ million)
Revenue
March 2010 971.2 438.8 163.3 119.4
December 2009 1,075.6 570.9 204.1 171.4
Financial year to date 2,995.1 1,513.6 548.6 445.4
Operating costs, net
March 2010 627.6 364.4 123.4 110.7
December 2009 613.0 373.6 125.3 115.2
Financial year to date 1,832.5 1,092.0 370.2 334.4
- Operating costs
March 2010 634.1 364.4 123.4 110.7
December 2009 623.0 373.6 125.3 115.2
Financial year to date 1,851.0 1,092.0 370.2 334.4
- Gold inventory
change
March 2010 (6.5) - - -
December 2009 (10.0) - - -
Financial year to date (18.5) - - -
Operating profit
March 2010 343.6 74.4 39.9 8.7
December 2009 462.6 197.3 78.8 56.3
Financial year to date 1,162.6 421.6 178.4 111.0
Amortisation of
mining assets
March 2010 147.4 71.6 18.6 22.4
December 2009 149.7 81.8 19.6 27.8
Financial year to date 442.6 231.0 56.8 77.7
Net operating profit
March 2010 196.2 2.8 21.3 (13.7)
December 2009 312.9 115.5 59.1 28.4
Financial year to date 720.0 190.6 121.6 33.3
Other (expenses)/income
March 2010 (30.1) (13.9) (1.9) (2.8)
December 2009 (31.5) (13.4) (3.6) (2.9)
Financial year to date (99.8) (37.3) (8.4) (7.8)
Profit/(loss)
before taxation
March 2010 166.1 (11.1) 19.4 (16.4)
December 2009 281.4 102.1 55.5 25.6
Financial year to date 620.2 153.3 113.2 25.5
Mining and income
taxation
March 2010 72.8 0.6 5.3 0.5
December 2009 100.0 33.5 19.4 6.1
Financial year to date 237.1 55.1 36.9 11.9
- Normal taxation
March 2010 18.8 (2.7) (2.1) (0.6)
December 2009 45.4 15.6 13.3 2.3
Financial year to date 86.6 18.1 15.7 2.2
- Royalties
March 2010 15.8 1.7 1.2 0.2
December 2009 14.2 - - -
Financial year to date 42.4 1.7 1.2 0.2
- Deferred taxation
March 2010 38.1 1.6 6.2 1.0
December 2009 40.5 17.9 6.1 3.8
Financial year to date 108.1 35.3 20.0 9.5
Profit/(loss)
before exceptional
items
March 2010 93.3 (11.7) 14.2 (17.0)
December 2009 181.3 68.6 36.2 19.5
Financial year to date 383.2 98.2 76.3 13.6
Exceptional items
March 2010 (0.1) (0.1) - -
December 2009 0.4 0.4 0.1 0.3
Financial year to date (0.1) (0.1) 0.2 0.3
Net profit/(loss)
March 2010 93.2 (11.8) 14.2 (16.9)
December 2009 181.7 69.1 36.3 19.8
Financial year to date 383.0 98.1 76.5 13.9
Net profit/(loss)
excluding gains
and losses on
foreign exchange,
financial instruments
and exceptional items
March 2010 96.7 (11.9) 14.2 (17.0)
December 2009 184.7 68.8 36.2 19.6
Financial year to date 402.5 98.1 76.4 13.7
Capital expenditure
March 2010 248.8 144.7 34.6 35.2
December 2009 260.4 151.6 36.6 37.3
Financial year to date 731.8 430.6 106.0 103.8
South Africa Region
Beatrix South Deep
Operating Results
Ore milled/treated
(000 tons)
March 2010 726 424
December 2009 817 395
Financial year to date 2,334 1,218
Yield (ounces per ton)
March 2010 0.114 0.137
December 2009 0.131 0.181
Financial year to date 0.129 0.160
Gold produced
(000 ounces)
March 2010 82.9 57.9
December 2009 106.7 71.6
Financial year
to date 300.0 194.8
Gold sold
(000 ounces)
March 2010 82.9 57.9
December 2009 106.7 71.6
Financial year to date 300.0 194.8
Gold price received
(dollars per ounce)
March 2010 1,108 1,106
December 2009 1,098 1,098
Financial year to date 1,049 1,051
Total cash cost
(dollars per ounce)
March 2010 855 956
December 2009 696 763
Financial year to date 727 804
Notional cash
expenditure
(dollars per ounce)
March 2010 1,138 1,914
December 2009 917 1,581
Financial year to date 956 1,649
Operating costs
(dollars per ton)
March 2010 101 134
December 2009 94 142
Financial year to date 97 133
Financial Results
($ million)
Revenue
March 2010 92.0 64.1
December 2009 117.1 78.3
Financial year to date 314.8 204.9
Operating costs, net
March 2010 73.4 56.9
December 2009 77.0 56.1
Financial year to date 226.0 161.4
- Operating costs
March 2010 73.4 56.9
December 2009 77.0 56.1
Financial year to date 226.0 161.4
- Gold inventory
change
March 2010 - -
December 2009 - -
Financial year to date - -
Operating profit
March 2010 18.6 7.2
December 2009 40.1 22.2
Financial year to date 88.7 43.4
Amortisation of
mining assets
March 2010 15.8 14.9
December 2009 19.1 15.3
Financial year to date 53.3 43.2
Net operating profit
March 2010 2.8 (7.6)
December 2009 21.0 6.9
Financial year to date 35.5 0.3
Other (expenses)/income
March 2010 (1.6) (7.7)
December 2009 (1.7) (5.3)
Financial year to date (4.4) (16.8)
Profit/(loss)
before taxation
March 2010 1.2 (15.4)
December 2009 19.3 1.7
Financial year to date 31.1 (16.5)
Mining and income
taxation
March 2010 1.0 (6.2)
December 2009 7.4 0.7
Financial year to date 12.9 (6.6)
- Normal taxation
March 2010 - -
December 2009 - -
Financial year to date 0.1 -
- Royalties
March 2010 0.2 0.1
December 2009 - -
Financial year to date 0.2 0.1
- Deferred taxation
March 2010 0.8 (6.3)
December 2009 7.3 0.7
Financial year to date 12.6 (6.7)
Profit/(loss)
before exceptional
items
March 2010 0.2 (9.1)
December 2009 12.0 1.0
Financial year to date 18.2 (9.9)
Exceptional items
March 2010 0.1 (0.2)
December 2009 - -
Financial year to date (0.4) (0.2)
Net profit/(loss)
March 2010 0.3 (9.4)
December 2009 12.0 1.0
Financial year to date 17.8 (10.1)
Net profit/(loss)
excluding gains
and losses on
foreign exchange,
financial instruments
and exceptional items
March 2010 0.2 (9.3)
December 2009 12.0 1.0
Financial year to date 18.0 (10.0)
Capital expenditure
March 2010 20.9 53.9
December 2009 20.9 56.8
Financial year to date 60.9 159.8
Average exchange rates were US$1 = R7.50 and US$1 = R7.49 for the March 2010
and December 2009 quarters respectively.
The Australian dollar exchange rates were A$1 = R6.76 and A$1 = R6.80 for the
March 2010 and December 2009 quarters respectively.
Operating and financial results
UNITED STATES DOLLARS West Africa Region South
America
Region
Ghana Peru
Cerro
Total Tarkwa Damang Corona
Operating Results
Ore milled/treated
(000 tons)
March 2010 7,296 5,942 1,354 1,554
December 2009 6,574 5,452 1,122 1,564
Financial year to date 20,227 16,524 3,703 4,656
Yield (ounces per ton)
March 2010 0.031 0.029 0.040 0.071
December 2009 0.033 0.032 0.040 0.063
Financial year to date 0.033 0.031 0.041 0.064
Gold produced
(000 ounces)
March 2010 226.5 172.6 53.8 110.2
December 2009 218.1 172.8 45.3 98.4
Financial year to date 671.1 520.5 150.6 297.1
Gold sold
(000 ounces)
March 2010 226.5 172.6 53.8 110.7
December 2009 218.1 172.8 45.3 99.9
Financial year to date 671.1 520.5 150.6 299.7
Gold price received
(dollars per ounce)
March 2010 1,114 1,111 1,122 1,064
December 2009 1,102 1,106 1,086 1,090
Financial year to date 1,059 1,059 1,056 1,041
Total cash cost
(dollars per ounce)
March 2010 589 565 667 303
December 2009 524 492 643 378
Financial year to date 542 512 645 341
Notional cash
expenditure
(dollars per ounce)
March 2010 783 783 783 532
December 2009 741 728 791 617
Financial year to date 734 733 735 580
Operating costs
(dollars per ton)
March 2010 18 16 25 22
December 2009 18 16 26 23
Financial year to date 18 17 25 22
Financial Results
($ million)
Revenue
March 2010 252.4 191.9 60.4 117.4
December 2009 239.7 190.6 49.1 108.6
Financial year to date 710.4 551.4 159.0 312.0
Operating costs, net
March 2010 131.3 96.3 35.0 33.9
December 2009 110.3 81.9 28.4 36.9
Financial year to date 357.1 262.3 94.8 101.6
- Operating costs
March 2010 130.3 96.6 33.7 34.3
December 2009 118.4 89.2 29.2 36.2
Financial year to date 366.3 274.0 92.3 101.1
- Gold inventory change
March 2010 1.0 (0.3) 1.3 (0.4)
December 2009 (8.1) (7.3) (0.8) 0.6
Financial year to date (9.2) (11.8) 2.5 0.5
Operating profit
March 2010 121.0 95.6 25.4 83.5
December 2009 129.5 108.8 20.7 71.7
Financial year to date 353.3 289.1 64.2 210.4
Amortisation of mining
assets
March 2010 31.2 27.2 4.0 13.8
December 2009 30.5 26.5 4.0 13.1
Financial year to date 89.3 77.6 11.8 40.8
Net operating profit
March 2010 89.9 68.4 21.5 69.7
December 2009 99.0 82.3 16.7 58.6
Financial year to date 264.0 211.5 52.4 169.6
Other (expenses)/income
March 2010 (4.0) (3.2) (0.8) (9.3)
December 2009 (2.9) (1.9) (1.0) (14.2)
Financial year to date (9.6) (7.2) (2.4) (48.4)
Profit/(loss) before
taxation
March 2010 85.9 65.2 20.7 60.4
December 2009 96.1 80.4 15.7 44.4
Financial year to date 254.4 204.4 50.1 121.3
Mining and income
taxation
March 2010 30.5 23.1 7.4 29.1
December 2009 32.9 27.2 5.7 19.5
Financial year to date 88.6 70.4 18.3 57.5
- Normal taxation
March 2010 15.7 11.2 4.5 5.8
December 2009 13.6 9.8 3.8 16.2
Financial year to date 36.1 23.6 12.5 32.4
- Royalties
March 2010 8.2 6.3 1.8 1.9
December 2009 7.2 5.7 1.5 3.2
Financial year to date 21.9 17.1 4.8 7.5
- Deferred taxation
March 2010 6.6 5.6 1.0 21.4
December 2009 12.1 11.6 0.5 0.1
Financial year to date 30.6 29.6 1.0 17.6
Profit/(loss) before
exceptional items
March 2010 55.4 42.1 13.3 31.4
December 2009 63.2 53.2 10.0 24.9
Financial year to date 165.8 134.0 31.8 63.8
Exceptional items
March 2010 - - - -
December 2009 - - - -
Financial year to date - - - -
Net profit/(loss)
March 2010 55.4 42.1 13.3 31.3
December 2009 63.2 53.2 10.0 24.9
Financial year to date 165.8 134.0 31.8 63.8
Net profit/(loss)
excluding
gains and losses
on foreign
exchange, financial
instruments and exceptional items
March 2010 55.3 42.1 13.2 33.3
December 2009 63.4 53.4 10.0 29.7
Financial year to date 166.1 134.3 31.8 83.0
Capital expenditure
March 2010 46.9 38.4 8.5 24.3
December 2009 43.0 36.6 6.4 24.4
Financial year to date 126.0 107.6 18.4 71.2
UNITED STATES DOLLARS Australasia Region
Australia #
Total St Ives Agnew
Operating Results
Ore milled/treated
(000 tons)
March 2010 1,833 1,619 214
December 2009 2,046 1,796 250
Financial year to date 5,772 5,073 699
Yield (ounces per ton)
March 2010 0.081 0.066 0.190
December 2009 0.070 0.053 0.188
Financial year to date 0.076 0.060 0.191
Gold produced
(000 ounces)
March 2010 148.1 107.3 40.7
December 2009 142.9 96.0 46.9
Financial year to date 437.2 303.6 133.6
Gold sold
(000 ounces)
March 2010 148.1 107.3 40.7
December 2009 142.9 96.0 46.9
Financial year to date 437.2 303.6 133.6
Gold price received
(dollars per ounce)
March 2010 1,098 1,098 1,100
December 2009 1,097 1,094 1,103
Financial year to date 1,050 1,051 1,049
Total cash cost
(dollars per ounce)
March 2010 681 732 547
December 2009 637 724 461
Financial year to date 649 718 491
Notional cash
expenditure
(dollars per ounce)
March 2010 931 994 766
December 2009 956 1,043 777
Financial year to date 905 978 740
Operating costs
(dollars per ton)
March 2010 57 51 108
December 2009 46 40 92
Financial year to date 51 44 96
Financial Results
($ million)
Revenue
March 2010 162.7 117.7 45.0
December 2009 156.3 104.8 51.5
Financial year to date 459.1 319.1 140.0
Operating costs, net
March 2010 98.1 75.5 22.6
December 2009 92.2 71.1 21.1
Financial year to date 281.9 216.2 65.6
- Operating costs
March 2010 105.1 82.0 23.1
December 2009 94.8 71.8 23.0
Financial year to date 291.6 224.7 66.9
- Gold inventory change
March 2010 (7.0) (6.5) (0.4)
December 2009 (2.5) (0.7) (1.9)
Financial year to date (9.8) (8.5) (1.3)
Operating profit
March 2010 64.6 42.3 22.3
December 2009 64.1 33.7 30.4
Financial year to date 177.2 102.8 74.4
Amortisation of mining
assets
March 2010 30.8
December 2009 24.2
Financial year to date 81.5
Net operating profit
March 2010 33.7
December 2009 39.8
Financial year to date 95.7
Other (expenses)/income
March 2010 (2.9)
December 2009 (1.0)
Financial year to date (4.6)
Profit/(loss) before
taxation
March 2010 30.8
December 2009 38.8
Financial year to date 91.1
Mining and income
taxation
March 2010 12.6
December 2009 14.2
Financial year to date 35.9
- Normal taxation
March 2010 -
December 2009 -
Financial year to date -
- Royalties
March 2010 4.1
December 2009 3.7
Financial year to date 11.2
- Deferred taxation
March 2010 8.6
December 2009 10.5
Financial year to date 24.6
Profit/(loss) before
exceptional items
March 2010 18.2
December 2009 24.6
Financial year to date 55.2
Exceptional items
March 2010 -
December 2009 -
Financial year to date -
Net profit/(loss)
March 2010 18.2
December 2009 24.6
Financial year to date 55.2
Net profit/(loss)
excluding
gains and losses
on foreign
exchange, financial
instruments and exceptional
items
March 2010 20.0
December 2009 22.8
Financial year to date 55.3
Capital expenditure
March 2010 32.9 24.7 8.2
December 2009 41.4 28.1 13.3
Financial year to date 104.1 72.2 31.9
AUSTRALIAN DOLLARS
Australasia Region #
Total St Ives Agnew
Operating Results
Ore milled/treated
(000 tons)
March 2010 1,833 1,619 214
December 2009 2,046 1,796 250
Financial year to date 5,772 5,073 699
Yield (ounces per ton)
March 2010 0.081 0.066 0.190
December 2009 0.070 0.053 0.188
Financial year to date 0.076 0.060 0.191
Gold produced
(000 ounces)
March 2010 148.1 107.3 40.7
December 2009 142.9 96.0 46.9
Financial year to date 437.2 303.6 133.6
Gold sold
(000 ounces)
March 2010 148.1 107.3 40.7
December 2009 142.9 96.0 46.9
Financial year to date 437.2 303.6 133.6
Gold price received
(dollars per ounce)
March 2010 1,219 1,218 1,221
December 2009 1,208 1,205 1,215
Financial year to date 1,195 1,196 1,193
Total cash cost
(dollars per ounce)
March 2010 755 811 606
December 2009 703 798 509
Financial year to date 738 817 558
Notional cash
expenditure
(dollars per ounce)
March 2010 1,033 1,103 850
December 2009 1,053 1,149 856
Financial year to date 1,030 1,113 842
Operating costs
(dollars per ton)
March 2010 64 56 120
December 2009 51 44 101
Financial year to date 57 50 109
Financial Results
($ million)
Revenue
March 2010 180.8 131.0 49.8
December 2009 172.7 115.7 57.0
Financial year to date 522.3 363.0 159.3
Operating costs, net
March 2010 108.9 83.8 25.1
December 2009 101.4 78.3 23.2
Financial year to date 320.7 246.0 74.7
- Operating costs
March 2010 116.8 91.2 25.6
December 2009 104.4 79.0 25.4
Financial year to date 331.8 255.7 76.1
- Gold inventory change
March 2010 (8.0) (7.4) (0.5)
December 2009 (2.9) (0.7) (2.2)
Financial year to date (11.1) (9.7) (1.4)
Operating profit
March 2010 71.9 47.2 24.7
December 2009 71.3 37.4 33.9
Financial year to date 201.6 117.0 84.6
Amortisation of mining
assets
March 2010 34.3
December 2009 26.5
Financial year to date 92.8
Net operating profit
March 2010 37.6
December 2009 44.7
Financial year to date 108.8
Other (expenses)/income
March 2010 (3.2)
December 2009 (1.2)
Financial year to date (5.2)
Profit/(loss) before
taxation
March 2010 34.4
December 2009 43.5
Financial year to date 103.6
Mining and income
taxation
March 2010 13.6
December 2009 16.5
Financial year to date 40.8
- Normal taxation
March 2010 -
December 2009 -
Financial year to date -
- Royalties
March 2010 4.3
December 2009 4.3
Financial year to date 12.8
- Deferred taxation
March 2010 9.3
December 2009 12.2
Financial year to date 28.0
Profit/(loss) before
exceptional items
March 2010 20.8
December 2009 27.1
Financial year to date 62.8
Exceptional items
March 2010 -
December 2009 -
Financial year to date -
Net profit/(loss)
March 2010 20.8
December 2009 27.1
Financial year to date 62.8
Net profit/(loss)
excluding
gains and losses
on foreign
exchange, financial
instruments and exceptional items
March 2010 22.3
December 2009 27.5
Financial year to date 64.7
Capital expenditure
March 2010 36.3 27.3 9.0
December 2009 46.1 31.4 14.8
Financial year to date 118.4 82.1 36.3
# As a significant portion of the acquisition price was allocated to tenements
of St Ives and Agnew on endowment ounces and also as these two Australian
operations are entitled to transfer and then off-set tax losses from one
company to another, it is not meaningful to split the income statement below
operating profit.
Figures may not add as they are rounded independently.
Total cash cost
Gold Industry Standards Basis
Figures are in South African rand millions unless otherwise stated
South Africa Region
Total
Mine
Operations
Total Driefontein Kloof Beatrix
Operating
costs (1)
Mar 2010 4,758.3 2,732.8 925.0 830.5 550.2
Dec 2009 4,665.4 2,798.2 938.2 862.7 576.1
Financial
year to date 14,067.8 8,299.4 2,813.3 2,541.4 1,717.7
Gold-in-process
and
inventory
change*
Mar 2010 (19.8) - - - -
Dec 2009 (51.1) - - - -
Financial
year
to date (84.1) - - - -
Less:
Rehabilitation
costs
Mar 2010 31.0 22.3 8.9 6.9 4.1
Dec 2009 30.5 22.5 9.0 7.0 4.1
Financial
year
to date 91.2 67.1 26.8 20.8 12.3
Production
taxes
Mar 2010 7.5 7.5 1.6 3.4 1.2
Dec 2009 6.6 6.6 0.8 3.3 1.2
Financial
year
to date 21.8 21.8 4.2 10.2 3.6
General and
admin
Mar 2010 178.6 86.1 30.3 29.2 16.3
Dec 2009 176.8 81.8 28.2 28.3 15.5
Financial
year
to date 523.2 250.4 89.9 80.8 48.9
Cash
operating
costs
Mar 2010 4,521.4 2,616.9 884.2 791.0 528.6
Dec 2009 4,400.4 2,687.3 900.2 824.1 555.3
Financial
year to date 13,347.5 7,960.1 2,692.4 2,429.6 1,652.9
Plus:
Production
taxes
Mar 2010 7.5 7.5 1.6 3.4 1.2
Dec 2009 6.6 6.6 0.8 3.3 1.2
Financial
year
to date 21.8 21.8 4.2 10.2 3.6
Royalties
Mar 2010 117.3 12.9 9.3 1.4 1.3
Dec 2009 107.5 - - - -
Financial
year
to date 322.2 12.9 9.3 1.4 1.3
TOTAL CASH
COST (2)
Mar 2010 4,646.2 2,637.3 895.1 795.8 531.1
Dec 2009 4,514.5 2,693.9 901.0 827.4 556.5
Financial
year
to date 13,691.5 7,994.8 2,705.9 2,441.2 1,657.8
Plus:
Amortisation*
Mar 2010 1,076.3 536.2 139.1 167.0 118.3
Dec 2009 1,094.9 612.7 147.1 208.1 143.0
Financial
year to date 3,307.6 1,755.3 431.7 590.8 404.8
Rehabilitation
Mar 2010 31.0 22.3 8.9 6.9 4.1
Dec 2009 30.5 22.5 9.0 7.0 4.1
Financial
year to date 91.2 67.1 26.8 20.8 12.3
TOTAL
PRODUCTION
COST (3)
Mar 2010 5,753.5 3,195.8 1,043.1 969.7 653.5
Dec 2009 5,639.9 3,329.1 1,057.1 1,042.5 703.6
Financial
year
to date 17,090.3 9,817.2 3,164.4 3,052.8 2,074.9
Gold sold
- thousand
ounces
Mar 2010 880.6 395.4 147.1 107.5 82.9
Dec 2009 983.6 522.7 187.3 157.1 106.7
Financial
year
to date 2,852.8 1,444.9 523.8 426.2 300.0
TOTAL CASH
COST
- US$/oz
Mar 2010 703 889 811 987 855
Dec 2009 613 688 642 703 696
Financial
year
to date 631 728 680 754 727
TOTAL CASH
COST
- R/kg
Mar 2010 169,538 214,467 195,650 237,978 206,092
Dec 2009 147,648 165,707 154,678 169,306 167,722
Financial
year
to date 154,303 177,899 166,077 184,172 177,647
TOTAL
PRODUCTION
COST - US$/oz
Mar 2010 871 1,078 946 1,203 1,052
Dec 2009 766 850 754 886 881
Financial
year
to date 788 894 795 943 910
West Africa Region
Ghana
South
Deep Total Tarkwa Damang
Operating
costs (1)
Mar 2010 427.1 978.6 725.5 253.1
Dec 2009 421.2 885.9 667.2 218.7
Financial
year to date 1,227.0 2,783.8 2,082.5 701.3
Gold-in-process
and
inventory change*
Mar 2010 - 15.2 5.5 9.7
Dec 2009 - (31.0) (24.9) (6.1)
Financial year
to date - (26.6) (45.7) 19.1
Less:
Rehabilitation
costs
Mar 2010 2.4 2.9 2.6 0.3
Dec 2009 2.4 2.0 1.9 0.1
Financial year
to date 7.2 6.5 5.8 0.7
Production taxes
Mar 2010 1.3 - - -
Dec 2009 1.3 - - -
Financial year
to date 3.8 - - -
General and admin
Mar 2010 10.3 51.7 44.2 7.5
Dec 2009 9.8 50.9 45.9 5.0
Financial year
to date 30.8 152.7 134.0 18.7
Cash operating
costs
Mar 2010 413.1 939.2 684.2 255.0
Dec 2009 407.7 802.0 594.5 207.5
Financial
year to date 1,185.2 2,598.0 1,897.0 701.0
Plus:
Production taxes
Mar 2010 1.3 - - -
Dec 2009 1.3 - - -
Financial year
to date 3.8 - - -
Royalties
Mar 2010 0.9 61.6 47.5 14.1
Dec 2009 - 53.9 42.9 11.0
Financial year
to date 0.9 166.7 130.0 36.7
TOTAL CASH
COST (2)
Mar 2010 415.3 1,000.8 731.7 269.1
Dec 2009 409.0 855.9 637.4 218.5
Financial year
to date 1,189.9 2,764.7 2,027.0 737.7
Plus:
Amortisation*
Mar 2010 111.8 227.3 197.3 30.0
Dec 2009 114.5 197.6 168.2 29.4
Financial
year to date 328.0 635.5 546.0 89.5
Rehabilitation
Mar 2010 2.4 2.9 2.6 0.3
Dec 2009 2.4 2.0 1.9 0.1
Financial
year to date 7.2 6.5 5.8 0.7
TOTAL PRODUCTION
COST (3)
Mar 2010 529.5 1,231.0 931.6 299.4
Dec 2009 525.9 1,055.5 807.5 248.0
Financial year
to date 1,525.1 3,406.7 2,578.8 827.9
Gold sold
- thousand ounces
Mar 2010 57.9 226.5 172.6 53.8
Dec 2009 71.6 218.1 172.8 45.3
Financial year
to date 194.8 671.1 520.5 150.6
TOTAL CASH COST
- US$/oz
Mar 2010 956 589 565 667
Dec 2009 763 524 492 643
Financial year
to date 804 542 512 645
TOTAL CASH COST
- R/kg
Mar 2010 230,594 141,877 136,156 160,179
Dec 2009 183,655 126,369 118,719 155,627
Financial year
to date 196,353 132,453 125,208 157,494
TOTAL PRODUCTION
COST - US$/oz
Mar 2010 1,219 725 720 742
Dec 2009 981 646 624 730
Financial year
to date 1,030 668 652 723
Australasia Region
South
America
Region
Peru Australia
Cerro
Corona Total St Ives Agnew
Operating
costs (1)
Mar 2010 257.5 789.4 616.1 173.3
Dec 2009 271.8 709.5 537.2 172.3
Financial
year to date 768.1 2,216.5 1,708.0 508.5
Gold-in-process
and
inventory change*
Mar 2010 (2.4) (32.6) (30.0) (2.6)
Dec 2009 3.7 (23.8) (13.2) (10.6)
Financial year
to date 3.6 (61.1) (52.3) (8.8)
Less:
Rehabilitation
costs
Mar 2010 3.0 2.8 2.3 0.5
Dec 2009 3.0 3.0 2.4 0.6
Financial year
to date 9.1 8.5 6.9 1.6
Production taxes
Mar 2010 - - - -
Dec 2009 - - - -
Financial year
to date - - - -
General and admin
Mar 2010 14.3 26.5 16.3 10.2
Dec 2009 14.2 29.9 21.2 8.7
Financial year
to date 42.6 77.5 52.1 25.4
Cash operating
costs
Mar 2010 237.8 727.5 567.5 160.0
Dec 2009 258.3 652.8 500.4 152.4
Financial
year to date 720.0 2,069.4 1,596.7 472.7
Plus:
Production taxes
Mar 2010 - - - -
Dec 2009 - - - -
Financial year
to date - - - -
Royalties
Mar 2010 13.7 29.1 21.9 7.2
Dec 2009 24.3 29.3 19.7 9.6
Financial year
to date 57.3 85.3 59.9 25.4
TOTAL CASH
COST (2)
Mar 2010 251.5 756.6 589.4 167.2
Dec 2009 282.6 682.1 520.1 162.0
Financial year
to date 777.3 2,154.7 1,656.6 498.1
Plus:
Amortisation*
Mar 2010 101.8 211.0
Dec 2009 99.4 185.2
Financial
year to date 310.2 606.6
Rehabilitation
Mar 2010 3.0 2.8
Dec 2009 3.0 3.0
Financial
year to date 9.1 8.5
TOTAL PRODUCTION
COST (3)
Mar 2010 356.3 970.4
Dec 2009 385.0 870.3
Financial year
to date 1,096.6 2,769.8
Gold sold
- thousand ounces
Mar 2010 110.7 148.1 107.3 40.7
Dec 2009 99.9 142.9 96.0 46.9
Financial year
to date 299.7 437.2 303.6 133.6
TOTAL CASH COST
- US$/oz
Mar 2010 303 681 732 547
Dec 2009 378 637 724 461
Financial year
to date 341 649 718 491
TOTAL CASH COST
- R/kg
Mar 2010 73,068 164,050 176,361 131,654
Dec 2009 90,897 153,730 174,413 111,340
Financial year
to date 83,392 158,469 175,432 119,909
TOTAL PRODUCTION
COST - US$/oz
Mar 2010 429 874
Dec 2009 515 813
Financial year
to date 481 834
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) excl uded from
gold-in-process change.
Average exchange rates were US$1 = R7.50 and US$1 = R7.49 for the March 2010
and December 2009 quarters respectively.
Capital expenditure
Figures are in South African rand millions unless otherwise stated
South Africa Region
Total
Mine
Operations
Total Driefontein Kloof Beatrix
Sustaining
capital
March 2010 1,322.4 649.6 227.9 264.6 157.1
December 2009 1,394.9 680.8 244.5 279.9 156.4
Financial year
to date 3,944.2 1,957.9 706.0 788.8 463.1
Project capital
March 2010 404.1 404.1 - - -
December 2009 426.5 426.5 - - -
Financial year
to date 1,214.6 1,214.6 - - -
Uranium
capital
March 2010 31.6 31.6 31.6 - -
December 2009 29.5 29.5 29.5 - -
Financial year
to date 99.7 99.7 99.7 - -
Brownfields
exploration
March 2010 108.4 - - - -
December 2009 103.3 - - - -
Financial year
to date 302.8 - - - -
Total capital
expenditure
March 2010 1,866.5 1,085.3 259.5 264.6 157.1
December 2009 1,954.2 1,136.8 274.0 279.9 156.4
Financial year
to date 5,561.3 3,272.2 805.7 788.8 463.1
West Africa Region
Ghana
South
Deep Total Tarkwa Damang
Sustaining capital
March 2010 - 327.4 288.8 38.6
December 2009 - 306.8 274.1 32.7
Financial year
to date - 905.8 817.8 88.0
Project capital
March 2010 404.1 - - -
December 2009 426.5 - - -
Financial year
to date 1,214.6 - - -
Urani um capital
March 2010 - - - -
December 2009 - - - -
Financial year
to date - - - -
Brownfields
exploration
March 2010 - 25.3 - 25.3
December 2009 - 16.0 - 16.0
Financial year
to date - 51.5 - 51.5
Total capital
expenditure
March 2010 404.1 352.7 288.8 63.9
December 2009 426.5 322.8 274.1 48.7
Financial year
to date 1,214.6 957.3 817.8 139.5
Australasia Region
South
America
Region
Peru Australia
Cerro
Corona Total St Ives Agnew
Sustaining capital
March 2010 182.1 163.3 125.5 37.8
December 2009 183.0 224.3 163.8 60.5
Financial year
to date 540.8 539.7 398.1 141.6
Project capital
March 2010 - - - -
December 2009 - - - -
Financial year
to date - - - -
Urani um capital
March 2010 - - - -
December 2009 - - - -
Financial year
to date - - - -
Brownfields
exploration
March 2010 - 83.1 59.5 23.6
December 2009 - 87.3 47.9 39.4
Financial year
to date - 251.3 150.4 100.9
Total capital
expenditure
March 2010 182.1 246.4 185.0 61.4
December 2009 183.0 311.6 211.7 99.9
Financial year
to date 540.8 791.0 548.5 242.5
Notional cash expenditure ##
Figures are in South African rand millions unless otherwise stated
South Africa Region
Total
Mine
Operations
Total Driefontein Kloof Beatrix
Operating
costs
March 2010 4,758.3 2,732.8 925.0 830.5 550.2
December 2009 4,665.4 2,798.2 938.2 862.7 576.1
Financial
year
to date 14,067.8 8,299.4 2,813.3 2,541.4 1,717.7
Capital
expenditure
March 2010 1,866.5 1,085.3 259.5 264.6 157.1
December 2009 1,954.2 1,136.8 274.0 279.9 156.4
Financial
year
to date 5,561.3 3,272.2 805.7 788.8 463.1
Notional cash
expenditure
- R/kg
March 2010 241,860 310,490 258,907 327,482 274,466
December 2009 216,830 242,050 208,103 233,804 220,766
Financial
year
to date 221,417 257,490 222,120 251,241 233,691
Notional cash
expenditure
- US$/oz
March 2010 1,003 1,288 1,074 1,358 1,138
December 2009 900 1,005 864 971 917
Financial
year
to date 906 1,054 909 1,028 956
West Africa Region
Ghana
South
Deep Total Tarkwa Damang
Operating costs
March 2010 427.1 978.6 725.5 253.1
December 2009 421.2 885.9 667.2 218.7
Financial year
to date 1,227.0 2,783.8 2,082.5 701.3
Capital expenditure
March 2010 404.1 352.7 288.8 63.9
December 2009 426.5 322.8 274.1 48.7
Financial year
to date 1,214.6 957.3 817.8 139.5
Notional cash
expenditure
- R/kg
March 2010 461,521 188,730 188,742 188,690
December 2009 380,647 178,459 175,321 190,456
Financial year
to date 402,904 179,232 179,153 179,505
Notional cash
expenditure
- US$/oz
March 2010 1,914 783 783 783
December 2009 1,581 741 728 791
Financial year
to date 1,649 734 733 735
Australasia Region
South
America
Region
Peru Australia
Cerro
Corona Total St Ives Agnew
Operating costs
March 2010 257.5 789.4 616.1 173.3
December 2009 271.8 709.5 537.2 172.3
Financial year
to date 768.1 2,216.5 1,708.0 508.5
Capital expenditure
March 2010 182.1 246.4 185.0 61.4
December 2009 183.0 311.6 211.7 99.9
Financial year
to date 540.8 791.0 548.5 242.5
Notional cash
expenditure
- R/kg
March 2010 128,238 224,588 239,707 184,803
December 2009 148,530 230,133 251,140 187,079
Financial year
to date 141,625 221,188 238,960 180,790
Notional cash
expenditure
- US$/oz
March 2010 532 931 994 766
December 2009 617 956 1,043 777
Financial year
to date 580 905 978 740
## Notional cash expenditure (NCE) per kilogram (ounce) = operating costs plus
capital expenditure divided by gold produced.
Underground and surface
South African rand and metric units
South Africa Region
Total
Mine
Operations
Operating
Results Total Driefontein Kloof Beatrix
Ore milled /
treated (000 ton)
- underground
March 2010 2,469 2,027 651 454 610
December 2009 3,015 2,501 720 612 786
Financial year
to date 8,570 7,064 2,079 1,779 2,164
- surface
March 2010 11,794 1,553 751 574 116
December 2009 11,002 1,332 828 461 31
Financial year
to date 33,269 4,120 2,411 1,363 170
- total
March 2010 14,263 3,580 1,402 1,028 726
December 2009 14,017 3,833 1,548 1,073 817
Financial year
to date 41,839 11,184 4,490 3,142 2,334
Yield
(grams per ton)
- underground
March 2010 5.6 5.6 6.2 6.6 4.0
December 2009 6.0 6.1 7.2 7.5 4.2
Financial year
to date 5.8 5.9 6.9 6.9 4.2
- surface
March 2010 1.1 0.7 0.7 0.6 1.0
December 2009 1.1 0.7 0.8 0.6 1.0
Financial year
to date 1.2 0.8 0.8 0.7 1.0
- combined
March 2010 1.9 3.4 3.3 3.3 3.5
December 2009 2.2 4.2 3.8 4.6 4.1
Financial year
to date 2.1 4.0 3.6 4.2 4.0
Gold produced
(kilograms)
- underground
March 2010 13,892 11,255 4,065 2,991 2,462
December 2009 17,981 15,274 5,168 4,598 3,288
Financial year
to date 50,088 41,846 14,390 12, 338 9,158
- surface
March 2010 13,499 1,042 510 353 115
December 2009 12,548 983 657 289 30
Financial year
to date 38,564 3,094 1,903 917 174
- total
March 2010 27,391 12,297 4,575 3,344 2,577
December 2009 30,529 16,257 5,825 4,887 3,318
Financial year
to date 88,652 44,940 16,293 13, 255 9,332
Operating costs
(Rand per ton)
- underground
March 2010 1,243 1,300 1,324 1,770 900
December 2009 1,040 1,084 1,212 1,378 732
Financial year
to date 1,085 1,137 1,259 1,394 793
- surface
March 2010 143 63 84 47 8
December 2009 139 65 79 43 13
Financial year
to date 143 65 81 45 9
- total
March 2010 334 763 660 808 758
December 2009 333 730 606 804 705
Financial year
to date 336 742 627 809 736
West Africa Region
Ghana
South
Operating Results Deep # Total Tarkwa Damang
Ore milled /
treated (000 ton)
- underground
March 2010 312 - - -
December 2009 383 - - -
Financial year
to date 1,042 - - -
- surface
March 2010 112 7,296 5,942 1,354
December 2009 12 6,574 5,452 1,122
Financial year
to date 176 20,227 16,524 3,703
- total
March 2010 424 7,296 5,942 1,354
December 2009 395 6,574 5,452 1,122
Financial year
to date 1,218 20,227 16,524 3,703
Yield
(grams per ton)
- underground
March 2010 6.2 - - -
December 2009 6.2 - - -
Financial year
to date 6.3 - - -
- surface
March 2010 0.6 1.0 0.9 1.2
December 2009 0.6 1.0 1.0 1.3
Financial year
to date 0.6 1.0 1.0 1.3
- combined
March 2010 4.2 1.0 0.9 1.2
December 2009 5.6 1.0 1.0 1.3
Financial year
to date 5.0 1.0 1.0 1.3
Gold produced
(kilograms)
- underground
March 2010 1,737 - - -
December 2009 2,220 - - -
Financial year
to date 5,960 - - -
- surface
March 2010 64 7,054 5,374 1,680
December 2009 7 6,773 5,369 1,404
Financial year
to date 100 20,873 16,189 4,684
- total
March 2010 1,801 7,054 5,374 1,680
December 2009 2,227 6,773 5,369 1,404
Financial year
to date 6,060 20,873 16,189 4,684
Operating costs
(Rand per ton)
- underground
March 2010 1,345 - - -
December 2009 1,098 - - -
Financial year
to date 1,167 - - -
- surface
March 2010 66 134 122 187
December 2009 58 135 122 195
Financial year
to date 63 138 126 189
- total
March 2010 1,007 134 122 187
December 2009 1,066 135 122 195
Financial year
to date 1,007 138 126 189
Australasia Region
South
America
Region
Peru Australia
Cerro
Operating Results Corona Total St Ives Agnew
Ore milled /
treated (000 ton)
- underground
March 2010 - 442 290 152
December 2009 - 514 367 147
Financial year
to date - 1,506 1,019 487
- surface
March 2010 1,554 1,391 1,329 62
December 2009 1,564 1,532 1,429 103
Financial year
to date 4,656 4,266 4,054 212
- total
March 2010 1,554 1,833 1,619 214
December 2009 1,564 2,046 1,796 250
Financial year
to date 4,656 5,772 5,073 699
Yield
(grams per ton)
- underground
March 2010 - 6.0 4.9 8.0
December 2009 - 5.3 3.6 9.3
Financial year
to date - 5.5 4.2 8.1
- surface
March 2010 2.2 1.4 1.4 0.9
December 2009 2.0 1.1 1.2 0.8
Financial year
to date 2.0 1.3 1.3 0.9
- combined
March 2010 2.2 2.5 2.1 5.9
December 2009 2.0 2.2 1.7 5.8
Financial year
to date 2.0 2.4 1.9 5.9
Gold produced
(kilograms)
- underground
March 2010 - 2,637 1,425 1,212
December 2009 - 2,707 1,338 1,369
Financial year
to date - 8,242 4,277 3,965
- surface
March 2010 3,428 1,975 1,917 58
December 2009 3,062 1,730 1,644 86
Financial year
to date 9,242 5,355 5,166 189
- total
March 2010 3,428 4,612 3,342 1,270
December 2009 3,062 4,437 2,982 1,455
Financial year
to date 9,242 13,597 9,443 4,154
Operating costs
(Rand per ton)
- underground
March 2010 - 985 936 1,078
December 2009 - 825 714 1,101
Financial year
to date - 844 770 998
- surface
March 2010 166 255 259 152
December 2009 174 186 192 102
Financial year
to date 165 222 228 107
- total
March 2010 166 431 381 810
December 2009 174 347 299 689
Financial year
to date 165 384 337 727
# March quarter includes 34,000 tons (December quarter 24,000 tons) of waste
processed from underground and 98,000 tons year to date. In order to show the
yield based on ore mined, the calculation of the yield at South Deep only,
excludes the underground waste.
Development results
Development values represent the actual results of sampling and no allowance
has been made for any adjustments which may be necessary when estimating ore
reserves. All figures below exclude shaft sinking metres.
Driefontein
March 2010 quarter
Carbon
Main VCR
Reef Leader
Advanced (m) 3,468 582 1,311
Advanced on reef (m) 580 55 140
Sampled (m) 672 72 111
Channel width (cm) 80 59 44
Average value - (g/t) 27.5 5.2 40.5
- (cm.g/t) 2,210 305 1,792
Driefontein
December 2009 quarter
Carbon
Main VCR
Reef Leader
Advanced (m) 3,806 577 1,462
Advanced on reef (m) 704 37 126
Sampled (m) 603 111 78
Channel width (cm) 72 60 64
Average value - (g/t) 19.5 6.2 14.2
- (cm.g/t) 1,402 369 916
Driefontein
Year to date F2010
Carbon
Main VCR
Reef Leader
Advanced (m) 10,993 1,920 4,364
Advanced on reef (m) 2,078 112 349
Sampled (m) 1,947 183 267
Channel width (cm) 75 60 66
Average value - (g/t) 23.5 5.8 21.7
- (cm.g/t) 1,762 344 1,443
Kloof
March 2010 quarter
Kloof Main VCR
Reef
Advanced (m) 226 907 3,537
Advanced on reef (m) 12 174 629
Sampled (m) 11 156 568
Channel width (cm) 119 101 134
Average value - (g/t) 17.7 7.6 20.2
- (cm.g/t) 2,116 770 2,709
Kloof
December 2009 quarter
Kloof Main VCR
Reef
Advanced (m) 191 1,388 4,644
Advanced on reef (m) 20 297 823
Sampled (m) 23 243 660
Channel width (cm) 201 91 129
Average value - (g/t) 17.4 7.6 23.4
- (cm.g/t) 3,503 691 3,032
Kloof
Year to date F2010
Kloof Main VCR
Reef
Advanced (m) 631 3,709 12,922
Advanced on reef (m) 85 673 2,117
Sampled (m) 89 525 1,760
Channel width (cm) 192 107 131
Average value - (g/t) 15.4 7.0 21.9
- (cm.g/t) 2,948 749 2,870
Beatrix
March 2010 quarter
Reef Beatrix Kalkoenkrans
Advanced (m) 5,146 1,743
Advanced on reef (m) 886 291
Sampled (m) 774 267
Channel width (cm) 110 115
Average value - (g/t) 12.8 27.5
- (cm.g/t) 1,417 3,174
Beatrix
December 2009 quarter
Reef Beatrix Kalkoenkrans
Advanced (m) 5,837 2,042
Advanced on reef (m) 1,192 488
Sampled (m) 936 486
Channel width (cm) 123 82
Average value - (g/t) 9.8 40.4
- (cm.g/t) 1,203 3,296
Beatrix
Year to date F2010
Reef Beatrix Kalkoenkrans
Advanced (m) 16,024 5,758
Advanced on reef (m) 2,785 1,189
Sampled (m) 2,292 1,167
Channel width (cm) 120 96
Average value - (g/t) 9.5 29.2
- (cm.g/t) 1,144 2,803
South Deep March 2010 quarter
Reef Elsburgs 1,2
Main Advanced (m) 2,321
- Main above 95 level (m) 1,440
- Main below 95 level (m) 881
Advanced on reef (m) 1,227
Average value - (g/t) 5.1
South Deep December 2009 quarter
Reef Elsburgs 1,2
Main Advanced (m) 2,606
- Main above 95 level (m) 1,394
- Main below 95 level (m) 1,212
Advanced on reef (m) 1,281
Average value - (g/t) 4.8
South Deep Year to date F2010
Reef Elsburgs 1,2
Main Advanced (m) 7,642
- Main above 95 level (m) 4,189
- Main below 95 level (m) 3,453
Advanced on reef (m) 3,756
Average value - (g/t) 5.0
1) Trackless development in the Elsburg reefs is evaluated by means of the
resource model.
2) Full channel width not fully exposed in development, hence not reported.
Administration and corporate information
Directors
A J W right (Chairman)
N J Holland *### (Chief Executive Officer)
PA Schmidt### (Chief Financial Officer)
K Ansah #
R Danino **
A R Hill
R P Menell
D N Murray
D M J Ncube
R L Pennant-Rea *
C I von Christierson
G M Wilson
CA Carolus
* British
** Peruvian
# Ghanaian
Independent Director
## Canadian
### Non-independent Director
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
Office of the United Kingdom Secretaries
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
Investor Enquiries
Willie Jacobsz
Tel: (+508) 839 1188
Mobile: (+857) 241 7127
e-mail: willie.jacobsz@gfexpl.com
Nikki Catrakilis-Wagner
Tel: (+2711) 562 9706
Mobile: (+27) 83 309 6720
e-mail: nikki.catrakilis-wagner@goldfields.co.za
Media Enquiries
Sven Lunsche
Tel: (+2711) 562 9763
Mobile: (+27) 83 260 9279
e-mail: sven.lunsche@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: 0871 664 0300 (calls cost 10p a minute
plus network extras, lines are open
8.30am-5.30pm Mon-Fri) or
(from overseas) +44 20 8639 3399
Fax: +44 20 8658 3430
e-mail: ssd@capitaregistrars.com
Website
http://www.goldfields.co.za
Listings
JSE / NYSE / NASDAQ Dubai: GFI
NYX: GFLB
SW X: GOLI
Forward Looking Statements
Certain statements in this document constitute "forward looking statements"
within the meaning of Section 27A of the US Securities Act of 1933 and Section
21E of the US Securities Exchange Act of 1934.
Such forward looking statements involve known and unknown risks, uncertainties
and other important factors that could cause the actual results, performance or
achievements of the company to be materially different from the future results,
performance or achievements expressed or implied by such forward looking
statements. Such risks, uncertainties and other important factors include among
others: economic, business and political conditions in South Africa, Ghana,
Australia, Peru and elsewhere; the ability to achieve anticipated efficiencies
and other cost savings in connection with past and future acquisitions,
exploration and development activities; decreases in the market price of gold
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 and unplanned maintenance
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.
Date: 07/05/2010 08:00:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
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completeness of the information published on SENS. The JSE, their officers,
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information disseminated through SENS.
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