| Wed 10 Nov 2004, 9:01 | | Gold Fields" Proven Track Record Of Creating Value |
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Gold Fields Limited - The Choice For Shareholders Is Clear: Gold Fields` Proven
Track Record Of Creating Shareholder Value
Gold Fields Limited
Registration number: 1968/004880/06
ISIN: ZAE000018123 JSE Code: GFI
(`Gold Fields` or the `company`)
THE CHOICE FOR SHAREHOLDERS IS CLEAR: GOLD FIELDS` PROVEN TRACK RECORD OF
CREATING SHAREHOLDER VALUE
REJECT THE HARMONY OFFER
9 November 2004
Following Harmony`s presentation this afternoon, Ian Cockerill, Chief Executive
Officer of Gold Fields Limited said,
`The core issue, which was not addressed in today`s presentation by Harmony, is
that their coercive two-stage offer substantially undervalues Gold Fields`
shares.`
In addition, the Board of Gold Fields would like to remind shareholders of the
following facts:
- Gold Fields has delivered a 200% return to its shareholders over the last five
years; Harmony`s equivalent return is only 112%;
- Gold Fields has maintained a consistent level of gold production in South
Africa over the last five quarters, while reducing its costs to R 73,263 per
kilogram in the September quarter. Harmony has suffered a 13% drop in production
while Its Rand Per Kilogram Costs Have Actually Increased Over The Same Time
Period;
- Gold Fields total cash costs on a group basis are R 66,516 (Q1 F2005) per
kilogram; Harmony`s cash operating costs are R 77,880 (Q1 F2005) per kilogram;
- Gold Fields total cash costs in respect of its South African operations are
R 73,263 (Q1 F2005) per kilogram; Harmony`s cash operating costs for South
Africa are R 79,169 (Q1 F2005) per kilogram;
- Gold Fields has achieved headline earnings for the last 5 quarters; Harmony
has headline losses for the last five quarters; and
- Gold Fields has generated positive cash flow from operating activities
(excluding dividends paid) of R 1.7 billion (F2004) and R 0.2 billion (Q1 F2005)
and has over R3.4 billion in the bank; Harmony is burning cash, has debts of
over R 3.3 billion with more than R 500m of deferred payments due in January
2005.
The Gold Fields board believes that Gold Fields` long-term assets need
sustainable management practices - not short term cost cutting. Shareholders`
best option for value creation is the proven option: Gold Fields. Harmony`s
hostile and coercive offer will destroy shareholder value and dilute Gold
Fields` earnings per share, operating cash flow and balance sheet strength.
Reject the Harmony offer.
Based on relative share performance over the period inclusive of reinvested
dividends
Joint Financial Advisors to Gold Fields Sponsor to Gold Fields
Goldman Sachs International JPMorgan
JPMorgan
Corporate law advisors and consultants
to Gold Fields
Edward Nathan & Friedland (Pty) Limited
Corporate Law Advisors and Consultants
(Registration number 1999/026464/21)
In the United States, Gold Fields Limited (`Gold Fields`) has filed a
Solicitation/Recommendation Statement with the US Securities and Exchange
Commission (the `SEC`) on Schedule 14D-9 and holders of the Gold Fields Ordinary
Shares and American Depositary Shares are advised to read it as it contains
important information. Copies of the Schedule 14D-9 and other related documents
filed by Gold Fields are available free of charge on the SEC`s website at
http://www.sec.gov. Any documents filed by Harmony Gold Mining Company Limited,
including any registration statement on Form F-4 (including any prospectus
contained therein) and related exchange offer materials as well as its Tender
Offer Statement on Schedule TO, will also be available free of charge on the
SEC`s website.
This document contains forward-looking statements with respect to Gold Fields`
financial condition, results of operations, business strategies, operating
efficiencies, competitive position, growth opportunities for existing services,
plans and objectives of management, markets for stock and other matters. These
forward-looking statements are subject to a number of risks and uncertainties
and the events discussed herein may not occur.
The directors of Gold Fields accept responsibility for the information contained
in this document. To the best of their knowledge and belief (having taken all
reasonable care to ensure that such is the case) the information contained in
this document is in accordance with the facts and does not omit anything likely
to affect the import of such information.
Information included in this document relating to Harmony and its business has
been derived solely from publicly available sources. While Gold Fields has
included information in this document regarding Harmony that is known to Gold
Fields based on publicly available information, Gold Fields has not had access
to non-public information regarding Harmony and could not use such information
for the purpose of preparing this document. Although Gold Fields is not aware of
anything that would indicate that statements relating to Harmony contained in
this document are inaccurate or incomplete, Gold Fields is not in a position to
verify information concerning Harmony. Gold Fields and its directors and
officers are not aware of any errors in such information. Subject to the
foregoing and to the maximum extent permitted by law, Gold Fields and its
directors and officers disclaim all liability for information concerning Harmony
included in this document.
Copies of this document are not being made available, and must not be mailed,
forwarded, transmitted or otherwise distributed or sent in or into Australia,
Canada, Japan, the Republic of Ireland or any other jurisdiction in which it is
illegal to make the offer and persons receiving this document (including
custodians, nominees and trustees) must not distribute, forward, mail, transmit
or send it in or into or from Australia, Canada, Japan, the Republic of Ireland
or any such other jurisdiction.
ends
Date: 10/11/2004 07:56:01 AM Produced by the JSE SENS Department
