MEDIA RELEASE
Johannesburg, 16 February 2001 - Gold Fields Limited (JSE - GFI and Nasdaq -
GOLD) today announced that it had closed out the last of its remaining hedge
positions.
Chris Thompson, Chairman and Chief Executive Officer of Gold Fields said: "Gold
Fields is now totally unhedged, which is an affirmation of our policy in this
regard."
Gold Fields bought back 160 000 ounces of gold forward sales at an average spot
price of US$256.10 per ounce, to generate a net profit of approximately US$4.5
million.
The hedge position was held by Gold Fields Ghana (71% owned), and was required
by lenders to the Tarkwa Gold Mine in terms of potential debt covenant
obligations.
As a consequence of closing out the hedges and given the substantial cash that
has been built up in Gold Fields Ghana, it has also been decided to retire all
or a substantial portion of the remaining project loan of US$25 million held by
Gold Fields Ghana.
"We thought this was an opportune time to close out the last of our hedges,
given the current weakness in the gold price, which we believe is not
sustainable", said Thompson.
Gold Fields Limited is one of the world's largest gold producers with
approximately four million ounces of gold production per annum, 145 million
ounces of mineral resources, and reserves of 70 million ounces. Gold Fields is
focused on increasing value at its existing operations and on international
growth. In addition to being listed on the Johannesburg (GFI), London, Paris
and Swiss Stock Exchanges, Gold Fields trades on Nasdaq (GOLD) through an
American Depositary Receipt programme and on the Brussels Stock Exchange
through an International Depositary Receipt programme.
ends
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