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GFI
GOGOF
Gold Fields Limited - Quarter ended 31 March 2006
GOLD FIELDS LIMITED
Incorporated in the Republic of South Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN: ZAE000018123
Q3 F2006
Quarter ended 31 March 2006
News Release Q3 F2006 Results
-Unaudited-
Attributable earnings increase 84 per cent on the back of increased
international production and an improved gold price
JOHANNESBURG. 2 May 2006 - Gold Fields Limited (NYSE & JSE: GFI) today
announced March 2006 quarter net earnings of R483 million compared with R262
million in the December 2005 quarter and a loss of R2 million for the March
quarter of 2005. In US dollar terms net earnings for the March 2006 quarter
equated to US$76 million compared with US$40 million in the December 2005
quarter and US$0.2 million for the March quarter of 2005. Net earnings
excluding gains and losses on financial instruments and foreign debt net of
cash and exceptional items were R376 million (US$60 million) for the March 2006
quarter compared with R275 million (US$42 million) for the December 2005
quarter.
March 2006 quarter highlights:
Net earnings up 84 per cent to R483 million on the back of increased
international production and an improved gold price;
Average gold price up 8 per cent to R109,500 per kilogram and 15 per cent
in US dollar terms to US$555 per ounce;
Attributable gold production down 2 per cent to 1,023,000 ounces, despite
extended Christmas break and in line with guidance;
Total cash costs up 2 per cent to R73,378 per kilogram - US$372 per ounce
(R67,960 per kilogram - US$344 per ounce - when calculated on same basis as
peer group);
Acquisition of Bolivar Golds Choco 10 mine in Venezuela completed,
effective 1 March 2006; and
Norilsk Nickel disposed of its entire 20 per cent stake in Gold Fields
during the quarter.
Ian Cockerill, Chief Executive Officer of Gold Fields said:
"Gold Fields produced another solid set of results, with overall production and
total cash costs impacted only marginally by the extended Christmas break at
the South African operations.
All operations maintained good cost control with the bottom-line projects
delivering results.
As forecast, the declines at the South African operations (mainly at Kloof)
were largely offset by a healthy improvement at the international operations.
During the quarter Gold Fields assumed control of the newly acquired Choco 10
mine. The focus for the foreseeable future will be to introduce Gold Fields
standards to all facets of the operation thus providing a stable platform for
future growth.
The continued strength of the gold price throughout the quarter is reflected in
our improved operating margin and significantly increased earnings, and with
expectations of a continued higher gold price increased earnings should
continue."
Stock data
Number of shares in issue
- at end March 2006 494,075,334
- average for the quarter 493,790,542
Free Float 100%
ADR Ratio 1:1
Bloomberg / Reuters GFISJ / GFLJ.J
JSE Limited - (GFI)
Range - Quarter ZAR111.80 - ZAR146.80
Average Volume - Quarter 2,244,707 shares / day
NYSE - (GFI)
Range - Quarter US$18.16 - US$24.16
Average Volume - Quarter 1,934,868 shares / day
Salient features
South African Rand
Nine months to Quarter
Restated Restated
March March March Dec March
2005 2006 2005 2005 2006
Gold produced* kg 97,761 95,043 33,845 32,342 31,809
Total cash costs R/kg 65,443 72,597 64,957 71,659 73,378
Tons milled 000 35,655 36,715 12,789 12,089 12,738
Revenue R/kg 82,885 100,887 81,952 101,184 109,500
Operating costs R/ton 197 206 184 210 202
Operating profit Rm 1,630 2,699 537 958 1,187
Operating margin % 19 26 18 28 32
Net earnings
Rm 155 784 (2) 262 483
SA c.p.s. 31 159 (1) 53 98
Headline earnings
Rm 118 743 (4) 261 446
SA c.p.s. 24 150 (1) 53 90
Net earnings excluding
gains and losses on
financial instruments
and foreign debt net of
cash and exceptional
items
Rm 183 694 115 275 376
SA c.p.s. 37 141 23 56 76
United States Dollars
Quarter Nine months to
Restated Restated
March Dec March March March
2006 2005 2005 2006 2005
Gold produced* (000) oz 1,023 1,040 1,088 3,056 3,143
Total cash costs $/oz 372 341 340 353 332
Tons milled 000 12,738 12,089 12,789 36,715 35,655
Revenue $/oz 555 482 428 490 420
Operating costs $/ton 33 32 31 32 32
Operating profit $m 190 147 90 422 266
Operating margin % 32 28 18 26 19
Net earnings
$m 76 40 - 123 25
US c.p.s. 16 8 - 25 5
Headline earnings
$m 71 40 - 116 22
US c.p.s. 15 8 - 24 4
Net earnings excluding
gains and losses on
financial instruments
and foreign debt net of
cash and exceptional
items
$m 60 42 21 109 36
US c.p.s. 12 9 4 22 7
*Attributable - All companies wholly owned except for Ghana (71.1%) and
Bolivar (95%).
Note - restated figures are due to the adoption of IFRS 2, share based
payments.
Health and safety
We regret to report six fatalities during the March quarter with four of these
accidents due to falls of ground and seismicity. The international operations
were fatality free this quarter. The fatal injury frequency rate was 0.19 per
million hours worked, which is lower than the previous quarter"s figure of
0.23. The lost day injury frequency rate improved from 12.96 to 11.68, the
serious injury frequency rate remained unchanged at 7.0 and the days lost
frequency rate improved from 372 to 335 per million hours worked.
These rates are still unacceptably high and management is continuing to
actively review all current safety initiatives, seeking improvements that will
meet the Ontario safety standards on all of our mines.
Financial review
Quarter ended 31 March 2006 compared with quarter ended 31 December 2005
Revenue
Attributable gold production decreased by 2 per cent to 1,023,000 ounces in the
March 2006 quarter, compared with 1,040,000 ounces achieved in the December
2005 quarter. Production at the South African operations was 646,000 ounces,
compared with 698,000 ounces in the December quarter, a decrease of 7 per cent.
Attributable production at the international operations increased 10 per cent
to 377,000 ounces in the March quarter from 342,000 ounces in the previous
quarter.
At the South African operations, Driefontein"s gold production was marginally
below that achieved in the December quarter, with lower underground production
due to the Christmas/New Year break. This was largely offset by an increase in
surface tonnage as forecast. Beatrix performed similar to last quarter. At
Kloof, gold production decreased significantly due to a shortage of stockpile
material available over the Christmas break and a slow start-up thereafter as a
result of a labour dispute. Volumes were also negatively impacted by the need
to move crews as a consequence of grade variability.
At the international operations the increase in attributable production came
mainly from Tarkwa as predicted, but all the operations increased gold
production compared with the December quarter. At Tarkwa, the production
increase was due to higher stacked and recovered ounces. St Ives also had a
good quarter despite unscheduled mill downtime, while Agnew and Damang
continued their excellent performance producing at slightly higher levels than
last quarter.
The average quarterly US dollar gold price increased from US$482 per ounce in
the December quarter to US$555 per ounce this quarter, a 15 per cent increase.
The rand strengthened 6 per cent over the quarter, averaging R6.14 against the
US dollar, compared with R6.53 in the December quarter. The resultant rand gold
price increased from R101,184 per kilogram to R109,500 per kilogram, an 8 per
cent improvement.
The increase in the rand gold price achieved more than offset the lower
production, and as a result revenue increased from R3,479 million (US$534
million) to R3,734 million (US$602 million) this quarter.
Operating costs
Operating costs for the March 2006 quarter, at R2,573 million (US$417 million),
increased one per cent when compared with the December quarter"s R2,542 million
(US$390 million).
The decrease at the South African operations of R27 million (US$10 million
increase) from R1,732 million (US$266 million) to R1,705 million (US$276
million) was mainly at Kloof and is in line with the lower production.
Driefontein is within 1 per cent of last quarter"s costs, while Beatrix was
slightly below last quarter"s costs.
Costs at the international operations, including gold-in- process movements,
amounted to R842 million (US$136 million), 7 per cent more than the R789
million (US$121 million) incurred in the December quarter. The majority of this
increase was at Tarkwa in line with the higher production and costs incurred at
Choco 10 for March of R10 million (US$2 million). At St Ives, operating costs
increased in line with the increased production. Costs at Damang and Agnew were
virtually unchanged quarter on quarter, in line with the forecast.
Operating margin
The net effect of the changes in revenue and costs, after taking into account
gold-in-process movements, was an operating profit of R1,187 million (US$190
million). This is 24 per cent higher than the R958 million (US$147 million)
achieved in the December quarter. The Group margin increased from 28 per cent
to 32 per cent. The margin at the South African operations increased from 21
per cent to 22 per cent, while the margin at the international operations
increased from 39 per cent to 46 per cent quarter on quarter.
Amortisation
Amortisation increased from R376 million (US$58 million) in the December
quarter to R384 million (US$62 million) in the March quarter. This increase was
mainly due to the increase in production at Tarkwa and St Ives.
Other
Net interest and investment income after taking into account interest paid,
decreased from an income of R17 million (US$3 million) in the December quarter
to an expense of R7 million (US$1 million) for the March quarter. This was
mainly due to the losses incurred by an associate of R13 million (US$2
million), and interest paid of R11 million (US$2 million) on loan facilities
established to finance the acquisition of Bolivar and Cerro Corona.
The gain on foreign debt, net of cash, of R80 million (US$13 million), compares
with a gain of R1 million (US$0.1 million) in the December quarter. This
quarter"s gain comprises a R65 million (US$11 million) currency translation
gain on funds held to meet commitments in respect of the acquisition of Bolivar
and a R15 million (US$2 million) exchange gain on an inter-company loan.
The loss on financial instruments of R20 million (US$3 million) compares with a
loss of R19 million (US$3 million) in the December quarter. This quarter"s loss
comprises a marked to market loss on US dollar/rand forward purchase contracts
of R5 million (US$1 million), a R2 million loss (US$0.3 million) on the US
dollar/Australian dollar call options, a loss on unexpired diesel call options
in Ghana of R3 million (US$0.5 million) and a loss of R10 million (US$2
million) on the R/US$ swap relating to the financing of the Bolivar
acquisition. More details on these financial instruments are given on page 15
of this report.
Exploration expenditure
Exploration expenditure decreased from R54 million (US$8 million) in the
December quarter to R34 million (US$6 million) in the March quarter. Please
refer to the Exploration and Corporate Development section for more detail.
Taxation
Taxation for the quarter amounted to R225 million (US$36 million) compared with
R200 million (US$31 million) in the December quarter. The tax provision
includes normal and deferred taxation on all operations together with
government royalties at the international operations. The increase is in line
with the increased operating profit offset by a change in the tax rate in
Ghana from 28 to 25 per cent effective from 1 January 2006, which resulted in
a tax credit for the quarter of R58 million (US$9 million).
Earnings
Net profit attributable to ordinary shareholders amounted to R483 million
(US$76 million) or 98 SA cents per share (US$0.16 per share), compared with
R262 million (US$40 million) or 53 SA cents per share (US$0.08 per share) in
the previous quarter.
Headline earnings i.e. earnings less the after tax effect of asset sales,
impairments and the sale of investments, was R446 million (US$71 million) or 90
SA cents per share (US$0.15 per share), compared with earnings of R261 million
(US$40 million) or 53 SA cents per share (US$0.08 per share) last quarter.
Earnings excluding exceptional items as well as net gains and losses on
financial instruments and foreign debt net of cash amounted to R376 million
(US$60 million) or 76 SA cents per share (US$0.12 per share), compared with
earnings of R275 million (US$42 million) or 56 SA cents per share (US$0.09 per
share) reported last quarter.
Cash flow
Cash flow from operating activities for the quarter was R1,211 million (US$191
million), which was more than double the operating cash flow generated in the
December quarter of R557 million (US$90 million). This increase in cash flow
was mostly due to an increase in profit before tax and exceptional items of
R242 million (US$41 million), supplemented by an inflow of working capital of
R229 million (US$35 million) compared with the outflow of R266 million (US$41
million) the previous quarter.
Capital expenditure amounted to R473 million (US$76 million) compared with R402
million (US$62 million) in the December quarter. Expenditure at the South
African operations was similar at R164 million (US$27 million).
At the Ghanaian operations, capital expenditure amounted to R151 million (US$24
million) with R22 million (US$4 million) spent on the new heap leach pads
project at Tarkwa and R88 million (US$14 million) spent on the Damang main pit
cutback being the main components. This compares with total expenditure of R104
million (US$16 million) in the December quarter.
The Australian operations incurred capital expenditure of R103 million (A$23
million), which was similar to the December quarter. Expenditure at St Ives of
R79 million (A$17 million) included development costs at Argo and Leviathan
underground and Thunderer open pit. At Agnew, the majority of the R24 million
(A$5 million) expenditure was spent on development at Kim South and Main Lode.
Major projects are still forecast to be in line with approved votes.
Proceeds on disposal of various Group wide mining assets amounted to R22
million (US$3 million) for the quarter.
Purchase of subsidiaries amounted to R2,632 million (US$428 million) and
includes the purchase of Cerro Corona of R245 million (US$41 million) earning a
voting interest of 92 per cent and an economic interest of 80.7 per cent and
the purchase of the entire issued shares of Bolivar for R2,387 million (US$387
million). The purchase of investments consists of 10.4 million shares in Sino
Gold Corporation for R156 million (US$25 million) taking the Group"s total
interest to 13.9 per cent.
Financing activities include syndicated loans received of R987 million (US$154
million) as part finance of the Bolivar transaction, a repayment of R148
million (US$23 million) relating to the Mvela loan, loan repayments to Tarkwa
minorities of R44 million (US$7 million) and an inflow of R41 million (US$6
million) in relation to the share incentive scheme, resulting in a net
financing inflow of R836 million (US$130 million) for the quarter.
Net cash outflow for the quarter was R1,423 million (US$242 million). After
accounting for a negative translation adjustment of R13 million (the
translation adjustment in US dollar was positive $20 million), the cash balance
at the end of March was R1,502 million (US$239 million). The balance at the end
of December was R2,937 million (US$461 million).
Detailed and operational review
Group overview
Attributable gold production for the March 2006 quarter decreased 2 per cent to
1,023,000 ounces when compared with the December quarter. Production from the
South African operations at 646,000 ounces accounted for 63 per cent of the
Group"s total attributable production, compared with 698,000 ounces or 67 per
cent last quarter.
At the South African operations, gold production decreased 7 per cent compared
with the previous quarter. Driefontein was marginally lower quarter on quarter
at 285,000 ounces. Kloof decreased significantly from 253,000 ounces to 207,000
ounces, mainly due to a drop off in underground production as a result of the
Christmas break exacerbated by a lack of stockpile over this period and a slow
start up in January due to a labour dispute, together with grade variability.
Beatrix was flat at 155,000 ounces. Operating profit at the South African
operations increased 5 per cent to R483 million (US$77 million), mainly as a
consequence of the higher gold price achieved.
The Ghanaian operations showed a 12 per cent increase in attributable gold
production to 181,000 ounces. Damang was slightly higher than the previous
quarter due to an increase in ore treated and at Tarkwa a significant increase
in gold production of 15 per cent was achieved as a consequence of higher
volumes and grades, aided by the North heap leach pads moving onto first lifts
and continuing on first lifts at the new Blue Ridge south pads. The CIL plant
also performed well with an improved blend of hard and soft rock at higher
grades. Ghana contributed operating profit of R403 million (US$65 million), a
43 per cent increase when compared with the December quarter.
Production from the Australian operations improved 5 per cent quarter on
quarter to 190,000 ounces. At St Ives the increase of 8,000 ounces was due to
increased volumes processed through the Lefroy mill at slightly higher grades.
Agnew increased marginally with a slight increase in tonnage from Songvang.
Operating profit from the Australian operations increased from R216 million
(A$44 million, US$33 million) to R292 million (A$63 million, US$47 million),
primarily as a result of the higher gold price which increased from an average
of A$649 per ounce to A$756 per ounce for the March quarter.
The international operations contributed R705 million (US$113 million) or 59
per cent of the total operating profit of R1,187 million (US$190 million). This
compares with R497 million (US$76 million) or 52 per cent of the total
operating profit of R958 million (US$147 million) last quarter.
South African Operations
Project 500 was initiated in September 2003 to increase revenue and reduce
costs through two sub-projects i.e. Project 400 and Project 100. These projects
have proved successful and led to additional projects - Project 100+ and
Project Beyond as detailed below.
Project 400
Project 400 was aimed at improving revenue such that an additional R400 million
(US$60 million) per annum could be generated on a sustainable basis. This was
to be achieved through a basket of productivity initiatives; by eliminating
non-contributing production and replacing low-grade surface material with
higher margin underground material - all aimed at improved quality volumes. In
financial 2005 this resulted in improved yields, in line with the life of mine
grades for each of the South African operations, as reflected in the following
table.
Year Quarter
F2004 F2005 Dec Mar
2005 2006
Driefontein:
Life of mine head grade as per the 2003,
2004 and 2005 annual report 8.7 8.1 8.0 8.0
Life of mine head grade adjusted for
estimated metallurgical recoveries 8.4 7.8 7.8 7.8
Driefontein (underground yields achieved) 8.1 8.3 7.9 7.9
Kloof:
Life of mine head grade as per the 2003,
2004 and 2005 annual report 9.8 10.5 9.7 9.7
Life of mine head grade adjusted for
estimated metallurgical recoveries 9.5 10.2 9.4 9.4
Kloof (underground yields achieved) 9.0 9.1 8.8 8.6
Beatrix:
Life of mine head grade as per the 2003,
2004 and 2005 annual report 5.1 5.5 5.4 5.4
Life of mine head grade adjusted for
estimated metallurgical recoveries 4.9 5.3 5.2 5.2
Beatrix (underground yields achieved) 4.6 5.0 5.2 5.3
Project Beyond and Project 100+
Project Beyond, initiated in 2004, is a supply chain initiative targeting
savings of between R200 million and R300 million per annum over three years,
i.e. around 10 per cent of the amount expended on materials, services and
capital expenditure at the South African operations. Total expenditure on these
items is approximately R2.7 billion per annum. The project delivered R145
million of contract savings on historic baseline expenditure to date. The
savings are realised as these contracts are utilised by the mining operations
i.e. largely during the 2006 and 2007 financial years.
To date a total of R1.6 billion of spend has been reviewed as part of Project
Beyond. R72 million has been realised in cost savings, of which R30 million
applies to the 2005 financial year and R42 million to the 2006 financial year.
An additional R20 million in cost savings are expected to be realised before
the end of financial year 2006. During the next quarter, eleven commodities
will be reviewed yielding expected contractual saving of R15 million. In
addition, Total Cost of Ownership (TCO) opportunities could yield long-term
savings of up to R50 million. These opportunities relate to rail tracks, slurry
pumps, locomotives and salvage. TCO refers to minimising the cost of an item
over its useful life and takes account of related expenditure. A practical
example may be the use of higher specification (more expensive) electric motors
resulting in lower electricity costs. Project Beyond remains on target to
deliver between R60 million to R80 million contractual savings for the 2006
financial year.
The Project 100+ initiative continued during the past quarter.
Projects related to labour optimisation, transport, electricity demand and pump
management are expected to deliver benefits of around R200 million during 2006
and 2007.
Driefontein
March December
2006 2005
Gold produced - 000"ozs 284.5 290.1
Yield - underground - g/t 7.9 7.9
- combined - g/t 4.8 5.4
Total cash costs - R/kg 74,280 71,935
- US$/oz 376 343
Driefontein"s gold production of 284,500 ounces is slightly lower than the
previous quarter. Area mined decreased by 9 per cent quarter on quarter
resulting in underground tonnages milled reducing by 10 per cent from 1,029,000
to 925,000 tons, whilst the underground grade remaining unchanged at 7.9 grams
per ton. The reduced underground production was mainly as a result of the
Christmas break. The March quarter"s gold production was supplemented by 25,600
ounces from the final gold clean up at the No.1 gold plant. Surface tonnages
milled including the plant clean up above, increased by 38 per cent from
655,000 tons to 906,000 tons, at a yield of 1.7 grams per ton, compared with
1.4 grams per ton in the previous quarter. The increase in surface yield is as
a result of the final clean-up gold from No.1 gold plant. Surface yield is
expected to reduce to below 1 gram per ton in the June quarter.
Operating costs increased by 1 per cent from R675 million (US$104 million) to
R681 million (US$110 million). This, and the lower production, resulted in
total cash costs increasing 3 per cent in rand terms from R71,935 to R74,280
per kilogram. In US dollar terms, total cash costs increased by 10 per cent
from US$343 per ounce to US$376 per ounce aided by the strengthening of the
rand. Operating profit increased by 18 per cent from R237 million (US$36
million) in the December quarter to R280 million (US$45 million) in the March
quarter as a result of the increased gold price.
Capital expenditure decreased from R61 million (US$9 million) to R54 million
(US$9 million) for the March quarter.
Gold production for the June quarter is forecast to be between 5 and 10 per
cent lower than the March quarter as a result of lower anticipated underground
grades, while surface gold production will also reduce as the final clean up at
No. 1 gold plant was essentially completed during the March quarter.
Kloof
March December
2006 2005
Gold produced - 000"ozs 207.1 252.6
Yield - underground - g/t 8.6 8.8
- combined - g/t 7.6 8.3
Total cash costs - R/kg 92,236 79,369
- US$/oz 467 378
Gold production at Kloof decreased by 18 per cent from 252,600 ounces to
207,100 ounces in the March quarter. Underground tonnages milled reduced by 17
per cent quarter on quarter, from 880,000 tons to 733,000 tons, with a small
reduction in underground yield. The drop-off in tonnage was as a result of the
Christmas break and a slow start-up in January after the break as a result of a
labour dispute which has since been settled. Surface tons milled increased by
66 per cent from 70,000 tons to 116,000 tons, although at a lower yield of 0.9
grams per ton compared with 2.2 grams per ton in the previous quarter as
proportionally less higher grade clean-up was processed this quarter. The
increase in surface tonnage was to supplement the reduced underground tonnages
milled.
Operating costs at R616 million (US$100 million) for the quarter decreased by 5
per cent compared with the previous quarter"s cost of R648 million (US$99
million) mainly due to the reduced area mined underground. However, due to the
lower gold production total cash costs increased by 16 per cent from R79,369
per kilogram to R92,236 per kilogram.
As a result of the rand strengthening against the US dollar, the total cash
costs in US dollar terms increased by 24 per cent to US$467 per ounce, compared
with the previous quarter"s US$378 per ounce. Operating profit was lower as a
result, at R88 million (US$14 million) compared with R145 million (US$22
million) the previous quarter.
Capital expenditure decreased from R53 million (US$8 million) in the December
quarter to R46 million (US$7 million) for the current quarter due to phasing of
expenditure on the various projects. Capital expenditure in the June quarter is
expected to increase to prior levels.
Gold production is expected to increase by 10 to 15 per cent
in the next quarter as volumes are restored.
Beatrix
March December
2006 2005
Gold produced - 000"ozs 154.9 154.9
Yield - g/t 5.3 5.2
Total cash costs - R/kg 82,147 81,984
- US$/oz 416 391
Gold production at Beatrix was constant quarter on quarter at 154,900 ounces.
This was despite a decrease in the area mined of 9 per cent and tons milled
decreasing from 931,000 tons in the December quarter to 905,000 tons in the
March quarter due to the Christmas break. A 2 per cent increase in average
value mined coupled with improved quality factors (reduced stope width and
improved sweepings volumes), ensured a constant gold output. The yield
increased marginally to 5.3 grams per ton quarter on quarter. There are
currently no surface operations at Beatrix.
Operating costs quarter on quarter were constant at R409 million (US$66
million). Total cash costs increased from R81,984 per kilogram (US$391 per
ounce) in the December quarter to R82,147 per kilogram (US$416 per ounce) in
the March quarter. Beatrix posted an operating profit of R116 million (US$18
million) in the March quarter compared with R79 million (US$12 million) in the
December quarter due to the increased gold price.
Capital expenditure at R64 million (US$10 million) increased from R55 million
(US$8 million) in the December quarter due to additional development meters.
Gold production and costs for the June quarter are forecast to be similar to
those of the March quarter. Capital expenditure is planned to increase in the
June quarter due to the planned increase in development.
International Operations
Ghana
Tarkwa
March December
2006 2005
Gold produced - 000"ozs 192.4 166.6
Yield - Heap leach - g/t 0.9 0.9
- CIL plant - g/t 1.7 1.6
- Combined - g/t 1.1 1.0
Total cash costs - US$/oz 290 282
Tarkwa processed a total of 5.7 million tons at an average yield of 1.1 gram
per ton, producing 192,400 ounces of gold during the March quarter. The 15 per
cent increase in quarterly gold output was due to an increase in ore tons
stacked and recovered at the heap leach facilities and increased output at the
carbon-in-leach (CIL) plant. The heap leach process contributed 120,500 ounces
and the CIL plant 71,900 ounces for the quarter representing significant
increases over the previous quarter"s 111,000 ounces and 55,600 ounces
respectively.
Mining volumes increased by 2 million tons to 24 million tons in order to
increase ore mining, which increased from 5.14 to 5.43 million tons quarter on
quarter. The stripping ratio was virtually unchanged at 3.39 and reflects the
current push backs at the Teberebie and Kotraverchy pits. Mining costs were
US$1.03 per total ton mined for the quarter compared with US$0.96 per total ton
mined last quarter and reflects the increase in fleet maintenance costs and
higher commodity prices. The maintenance cost will increase as the mining fleet
moves to higher maintenance rates based on usage.
The CIL plant performed above capacity with a record quarterly throughput of
1.3 million tons, at an average yield of 1.7 grams per ton. This success was
mainly due to the increased ability to blend hard rock with the softer higher
grade material. Head grades increased due to the availability of higher grade
ore made available through increased waste mining.
A total of 4.4 million tons, at a head grade of 1.17 grams per ton, was stacked
on the heap leach pads during the March quarter. The increase in gold produced
from the heap leach pads of 9,500 ounces compared with the previous quarter is
mainly due to higher volumes stacked. Stacking commenced on the newly
commissioned Phase IV heap leach pads at the North heap leach facility.
Operating costs at US$55 million (R342 million), including gold-in-process
movements, were US$9 million (R38 million) higher than that reported in the
December quarter, reflecting the increase in mining and processing activity.
Operating cost per ton treated was US$9.80 per ton as against US$9.57 per ton
in the December quarter. Total cash costs at US$290 per ounce were marginally
up on the December quarter"s US$282 per ounce.
Operating profit for the quarter was US$51 million (R319 million) an increase
of 50 per cent when compared with the December quarter"s US$34 million (R220
million). This performance was influenced by the 15 per cent higher gold
production and the higher average US dollar gold price.
Capital expenditure increased from US$11 million (R69 million) to US$16 million
(R100 million) in the March quarter. The main areas of capital expenditure were
the construction of heap leach pads at the North facility, the purchasing of
mining equipment and the Teberebi pit waste cutback.
The reduction of the Ghanain corporate tax rate from 28 to 25 per cent took
effect on 1 January 2006 and as a result a reduction in the tax provision of
US$8.9 million is included in the March quarter results.
Gold production for the June quarter is expected to be marginally lower than
the current performance as grades and ore feed are anticipated to be slightly
lower. The CIL plant is expected to continue with the current level of
performance. Cost pressure will continue as higher stripping ratios are
required to ensure mining flexibility and sufficient ore feed. Commodity prices
are expected to continue their upward trend.
Damang
March December
2006 2005
Gold produced - 000"ozs 62.0 60.2
Yield - g/t 1.4 1.4
Total cash costs - US$/oz 344 330
Gold production increased from 60,200 ounces during the December quarter to
62,000 ounces in the March quarter, attributable to an increase in tons milled.
Yield remained constant at 1.4 grams per ton. Mill throughput for the quarter
at 1.375 million tons was higher than the 1.324 million tons achieved in the
December quarter due to 3 additional milling days and a 1.7 per cent increase
in plant utilisation.
Total tons mined increased from 3.9 million tons to 4.2 million tons and ore
mined at 900,300 tons was 40 per cent higher than the previous quarter"s
642,000 tons, resulting in a decrease in the stripping ratio to 3.64 from the
5.05 reported previously. The Tomento pits remain the main source of oxide
feed, while the Amoanda pit remains the main fresh ore source to the plant,
although this pit will be depleted in the June 2006 quarter. The Juno 2 South
West pit, which is a southern extension of the Damang pit cutback, commenced
production during the March quarter as an additional fresh ore source. A small
quantity of ore was mined along the eastern and western walls in the Damang pit
cutback and this will continue until brought into full production in the next
financial year.
Operating costs, including gold-in-process movements, increased to US$21
million (R127 million) from US$20 million (R128 million) in the previous
quarter. The higher mined and milled tonnages, the increased cost of reagents
and steel, and refurbishment and transportation of a mill motor, contributed to
the higher costs. Cost per ton milled increased slightly from US$14.28 to
US$14.54. Total cash costs increased from US$330 per ounce to US$344 per ounce,
reflecting the increase in working cost. A five year mining contract with
African Mining Services (AMS) was concluded during the quarter.
Operating profit increased by over 50 per cent from US$9 million (R61 million)
to US$14 million (R85 million), due to increases in both gold production and
the US dollar gold price.
Capital expenditure for the quarter amounted to US$8 million (R51 million)
compared with US$5 million (R35 million) for the December quarter. The majority
of this expenditure was incurred in mining the Damang pit cutback and raising
the tailings storage facility embankments. The Damang pit cutback is proceeding
on plan.
The reduction of the Ghanian corporate tax rate from 28 to 25 per cent took
effect on 1 January 2006 and as a result a reduction in the tax provision of
US$0.6 million is included in the March quarter results.
Gold production is expected to decrease by about 10 per cent in the June
quarter with the depletion of the higher grade fresh ore B4 surface stockpile.
This will be replaced by the lower grade B3 surface stockpile. In addition,
production of high-grade fresh ore from the Amoanda pit will reduce as this pit
reaches its currently planned limit.
Venezuela
Choco 10
March December
2006 2005
Gold produced - 000"ozs 5.4 -
Yield - g/t 1.6 -
Total cash costs - US$/oz 294 -
Bolivar"s Choco 10 mine became part of the international
portfolio from 1 March 2006 following its acquisition. Having
commenced production in August 2005, this operation is
significantly below medium term production levels. During
the month of March mining operations continued at the
Pisolita, Rosika and Coacia open pits from which oxide
material constitutes the bulk of the material being mined.
Grades for the month were lower than planned as the
company has not as yet received its explosives permit.
Blasting is therefore limited to use by contractors which
restricts the volume of higher grade ore. The high
proportion of oxide material limits plant capacity due to the
increases in slurry viscosity in the leach tanks. This will
become less of an issue through the year as the pits deepen
and the proportion of fresh rock increases.
Gold production for March was 5,400 ounces at a yield of
1.6 grams per ton. Total cash costs amounted to US$294 per ounce which should
decrease as production levels increase.
During this first month the team at the mine site has been strengthened in the
areas of mining and resource management, sustainable development and
environmental management by the addition of manager level staff in each of
these positions.
There are a number of key improvements planned at the Choco 10 mine over the
next twelve months. The processing plant is not performing to design and there
are a number of initiatives aimed at improving throughput, recovery and
implementing Gold Fields standards and procedures. A Gold Fields project team
has been deployed to project manage a recapitalization of the process plant.
This will focus on health and safety issues, identifying and removing key
bottlenecks, securing plant life and building up our inventory of critical
spares. Some US$2 million (R12 million) is expected to be spent on capital
improvements during the quarter. Other priority tasks include deploying Gold
Fields systems and processes in the areas of mineral resources management which
includes an expanded drilling programme, and sustainable development.
Gold production in the June quarter is forecast at 20,000 ounces.
Australia
St Ives
March December
2006 2005
Gold produced - 000"ozs 134.3 125.9
Yield - Heap leach - g/t 0.6 0.5
- Milling - g/t 3.3 3.2
- Combined - g/t 2.5 2.3
Total cash costs - A$/oz 450 431
- US$/oz 334 322
Gold production for the quarter was 134,300 ounces, 7 per cent higher than last
quarter"s 125,900 ounces. The increase was due to cumulative impacts of slight
improvements in ore volumes mined, open pit feed grade and recovery within the
Lefroy mill. The quarter"s gold production from the plant was 125,500 ounces
compared with 117,600 ounces previously. The heap leach pads produced 8,800
ounces for the quarter compared with 8,300 ounces previously.
The combined mill and heap leach feed grade of 2.7 grams per ton was marginally
higher than the previous quarter"s 2.6 grams per ton. Increased higher-grade
ore feed from the open pits increased the Lefroy mill yield from 3.2 to 3.3
grams per ton.
There was an 11 per cent increase in ore tons moved from the open pits to 1.19
million tons for the quarter, compared with the 1.07 million tons moved in the
December quarter. Open pit ore grade increased to 2.20 grams per ton from 1.75
grams per ton, as relatively higher grade ore was accessed from the deeper
parts of the Mars and Agamemnon pits. Total open pit movements and strip ratios
increased significantly with the commencement of the Thunderer open pit
pre-strip. During the quarter 2.35 million broken cubic metres (BCM"s) of ore
and waste was mined compared with 1.75 million BCM"s of ore and waste in the
previous quarter. The average strip ratio increased to 4.45 compared with 3.51
previously.
Underground operations were steady quarter on quarter with 446,400 tons of ore
mined at 4.8 grams per ton compared with 441,500 tons at 4.8 grams per ton
mined in the previous quarter. At the Leviathan complex, the winding down of
activities at the East Repulse zone was offset by the ramping up of activities
within the Conqueror zone. The Argo mine performed consistently quarter on
quarter.
Operating costs, including gold-in-process movements, increased from A$53
million (R261 million) to A$58 million (R266 million) reflecting the increased
volumes from open pit mining and royalties. Royalties calculated at 10 per cent
of the average quarterly gold price above A$600 per ounce was payable during
the quarter and amounted to A$2 million (R9 million), compared with A$0.6
million (R3 million) in the previous quarter. Total cash costs increased
accordingly, from A$431 per ounce to A$450 per ounce this quarter.
Operating profit at A$42 million (R196 million) was 50 per cent higher than the
previous quarter"s A$28 million (R137 million) as a result of increased
production and the higher gold price received in Australian dollar terms.
Capital expenditure for the March quarter at A$17 million (R79 million) was
consistent with the December quarter. Mine development capital increased to
A$11 million (R50 million) from A$9 million (R44 million) previously with the
Thunderer pre-strip but was offset by a reduction in capital works for the
underground mines. Exploration expenditure was consistent quarter on quarter at
approximately A$5 million (R23 million).
Gold production and unit costs for the June 2006 quarter are expected to be
similar to those achieved in the March quarter with improvements in tons milled
and feed grades offset by a planned 5-day mill shut down.
Agnew
March December
2006 2005
Gold produced - 000"ozs 55.9 55.1
Yield - g/t 5.0 5.2
Total cash costs - A$/oz 378 351
- US$/oz 281 262
Gold production for the quarter was 55,900 ounces, one per cent higher than
last quarter"s 55,100 ounces. This increase was due to a 6 per cent increase in
tons milled from 327,000 tons to 347,000 tons as a result of on-going
optimisation work on mill throughputs. Feed grade reduced quarter on quarter
from 5.57 grams per ton to 5.34 grams per ton with an increased component of
low grade open pit feed required to match mill volumes.
Open pit mining operations produced 195,000 tons of ore for the quarter
significantly down on the 250,500 tons produced in December quarter. The
reduction was due to an overall decrease in mining volumes from 1.41 million
broken cubic metres (BCM"s) to 1.04 million BCM"s, reflecting the move into 100
per cent fresh rock and resultant lower digger productivities. In addition,
equipment utilisation suffered during the quarter due to manning issues and
impacts of inclement weather. Open pit ore grade decreased to 1.86 grams per
ton from 1.96 grams per ton the previous quarter. The average strip ratio
decreased slightly to 14.28 compared with 14.83 previously.
Underground operations increased production quarter on quarter, with 112,100
tons of ore at 12.2 grams per ton mined compared with 107,500 tons at 11.8
grams per ton mined in the previous quarter. The increases reflect depletion
sequencing and the higher volumes. Lower average grades are predicted next
quarter as lower grade secondary stopes are extracted. The strategy for mining
of the Kim South zone has been finalised and will involve the use of paste fill
which should improve productivity.
Operating costs, including gold-in-process movements, increased marginally from
A$20 million (R96 million) to A$21 million (R97 million) for the quarter, with
all areas maintaining similar expenditures quarter on quarter. Total cash costs
increased to A$378 per ounce from A$351 per ounce in the December quarter, due
to the depletion of some higher cost stocks.
Operating profit at A$21 million (R96 million) was 31 per cent higher than the
A$16 million (R79 million) achieved in the previous quarter as a result of the
higher gold price.
Capital expenditure for the March quarter at A$5 million (R24 million) was
slightly lower than the A$7 million (R33 million) spent in the December
quarter. This was due to reductions in general infrastructure projects and a
slight decrease in underground development. Capital expenditure is expected to
increase next quarter with the commencement of a project to upgrade camp
accommodation, and paste fill plant installation projects.
June quarter"s gold production is expected to be in line with current
performance. However, cash costs are expected to increase as a result of an
increase in underground volumes at lower average grades and maintenance costs
associated with a planned mill shutdown.
Quarter ended 31 March 2006 compared with quarter ended
31 March 2005 restated
Attributable gold production in the March 2006 quarter was 1,023,000 ounces,
compared with 1,088,000 ounces in the March 2005 quarter. Production at the
South African operations decreased from 711,000 ounces to 646,000 ounces mainly
due to a decrease at Kloof of 57,000 ounces as a result of lower volumes mined
at lower grades over this period. At the international operations, attributable
gold production was unchanged at 377,000 ounces. The inclusion of Bolivar for
the first time this quarter and increased production from Tarkwa was offset by
higher production in the March 2005 quarter from the new Lefroy mill at St Ives
coupled with ongoing production from the old mill.
Revenue increased 27 per cent in rand terms (increased 22 per cent in US dollar
terms) from R2,950 million (US$495 million) to R3,734 million (US$602 million).
This increase in revenue was due to the increase in the average gold price,
which increased 34 per cent from R81,952 per kilogra (US$428 per ounce) in the
March 2005 quarter to R109,500 per kilogram (US$555 per ounce) in the March
2006 quarter.
Group operating costs in rand terms increased 9 per cent from R2,351 million
(US$395 million) to R2,573 million (US$417 million). At the South African
operations operating costs increased 3 per cent from R1,649 million (US$277
million) to R1,705 million (US$276 million), with cost reduction initiatives
partially offsetting the 6.5 per cent wage increase during the year. The
increase in operating costs at the international operations from R702 million
(US$118 million) to R869 million (US$140 million) amounted to 24 per cent. The
main reason for this increase was the increased production at Tarkwa due to the
commissioning of the new mill, together with significant increases in diesel,
steel and reagents over the past year and the increased cost of maintaining the
owner mining fleet at Tarkwa, as well as normal inflationary pressures.
Operating profit at R1,187 million (US$190 million) for the March 2006 quarter
has more than doubled when compared with the R537 million (US$90 million)
achieved in the March 2005 quarter.
Profit before tax amounted to R793 million (US$126 million) compares with a
loss of R5 million (US$1 million profit) in the March 2005 quarter. This
increase was mainly due to the increase in operating profit.
Net profit attributable to ordinary shareholders increased from a loss of R2
million (US$0.2 million profit) in the March 2005 quarter to R483 million
(US$76 million) in the March 2006 quarter. Earnings excluding gains on
financial instruments, foreign debt and exceptional items increased from R115
million (US$21 million) in the March 2005 quarter to R376 million (US$60
million) this quarter.
Capital and development projects
Cerro Corona
The Permit to Construct, as well as the last of several permits required for
the construction phase were received from the Peruvian Ministry of Energy and
Mines during the quarter. Construction activities are expected to begin in
earnest early in the June quarter. To date, most of the effort has been focused
on the completion of the project man- camp, as well as several related but
smaller projects. San Martin, the mining contractor, has begun to mobilize
earth moving equipment to the project site to begin mine road and site
earthworks in the next few weeks.
A number of meetings were held with several of the local communities in advance
of construction to maximize the inclusion of qualified local contractors in the
construction process. Several local groups have submitted competitive proposals
for segments of the pending work and more are expected over coming weeks. This
important community effort will greatly aid in keeping the area based companies
involved where practicable, as well as maintaining a good flow of information
to the communities.
Hatch, the engineering and procurement contractor, is 80 per cent complete with
the process plant and facility detailed engineering design, with the
procurement of engineered equipment on track to assure timely deliveries.
Knight Piesold is nearing completion of phase I and phase II of the tailings
disposal facility design.
Exploration and corporate development
During the quarter Gold Fields or its Joint Venture partners completed drilling
on eight separate projects. The previously announced agreement with North
American Palladium (TSE: "PDL") on the Arctic Platinum Project in northern
Finland was finalized and drilling has begun.
At the Essakane project in Burkina Faso, Gold Fields together with joint
venture partner Orezone Resources Inc. (OZN:TSX, Amex), continues to drill the
Essakane Main Zone ("EMZ"). A JORC classified resource estimate was completed
by RSG Global utilizing the existing drill database and a new geologic model
that resulted in the following:
Mineral Resource Estmate for Essakane Deposit - 8 March 2006
Cut-off 0.6 g/t 1.0 g/t
Category Ton Grade Gold Ton Grade Gold
Category
(Mt) (g/t) (`000oz) (Mt) (g/t) (`000oz)
Indicated 36.8 1.6 1,860 19.6 2.3 1,470
Total Inferred 27.7 1.7 1,480 15.3 2.4 1,190
Resources
Total 64.5 1.6 3,340 34.9 2.4 2,660
Resource Indicated 34.7 1.6 1,790 18.9 2.4 1,430
reporting within Inferred 19.3 1.8 1,130 11.5 2.6 950
US$475/oz
unoptimised pit Total 54.0 1.7 2,920 30.4 2.5 2,380
The resource calculation represents a recoverable resource after applying
change of support by uniform conditioning. A bankable feasibility study (BFS)
will commence in the second half of 2006 and be finalised in 2007. Gold Fields
has earned a 50 per cent interest in Essakane and has exercised its right to
increase its interest to 60 per cent by funding the BFS. Gold Fields has three
drill rigs operating on the EMZ and there are two rigs working on the
neighbouring Falagountou target six kilometers east of the EMZ.
Field work continued at the 85 per cent Telikan project in Guinea, consisting
of soil sampling and geologic mapping. A 136 hole rotary air blast (RAB)
drilling programme has begun. The agreement with Glencar Mining plc (AIM:"GEX")
on their 85 per cent Sankarani project in south- western Mali was finalised
during the quarter and field work has commenced. At the 80 per cent owned
Kisenge project in the southern DRC, auger drilling has extended the Mpokoto
anomaly an additional one kilometer to almost three kilometer in length. A
reverse circulation (RC) drill programme will commence during the June quarter.
At the Central Victoria project in Australia, aircore drilling extended the
strike length of the gold mineralised zone to five kilometer on the Gold Fields
100 per cent owned Lockington tenement. Aircore and follow-up diamond drilling
was completed during the quarter and continues into the June quarter. Our joint
venture with Geoinformatics Exploration Inc. (TSX-V: "GXL") in New South Wales
continued during the quarter, with prospect ranking and the relinquishment of
several tenements.
In China, field work continues on the Fujian JV with partners Zijin Mining
(HKSE: "2899") including geologic mapping and stream sediment sampling of the
Fujian epithermal belt and in the Heilongjiang province with local state owned
partners SMEI. Gold Fields has informed Sino Gold (ASX: "SGX") it intends to
withdraw from the Shandong JV. Gold Fields increased its ownership in Sino Gold
to 13.9 per cent by the purchase of shares from a private party and by
purchasing additional shares in a public offering.
Comaplex Minerals Corp (TSX: "CMF"), a Canadian company that is developing the
Meliadine project in the Nunavut province in which Gold Fields owns a 19.8 per
cent interest, completed a NI43-101 (the Canadian equivalent to SAMREC and the
JORC compliance systems) compliant resource study during the quarter. Results
of this study yielded:
Mineral Resources above 9900 relative level*
Applied cut- Contained
off grade Category Tonnage Grade (gmt) oz Au
2.5 gmt Indicated 4,200,000 7.5 1,009,000
2.5 gmt Inferred 3,244,000 4.1 432,000
Mineral Resources below 9900 relative level*
Applied cut- Contained
off grade Category Tonnage Grade (gmt) oz Au
6.5 gmt Indicated 507,000 11.3 184,000
6.5 gmt Inferred 3,188,000 10.9 1,120,000
* The natural interface between open pit (lower cut-off resource) and
underground (higher cut-off resource).
Gold Fields is providing technical assistance to Comaplex during this
programme. GoldQuest Mining Corporation (TSX Venture: "GQC") in which Gold
Fields has a 9.75 per cent interest, continues to report encouraging trench
results from its Las Tres Palmas prospect in the Dominican Republic. GoldQuest
commenced a two thousand meter scout drilling program at Las Tres Palmas during
the quarter. Gold Fields and GoldQuest agreed to a revision of their option
agreement during the quarter that will result in Gold Fields becoming a Joint
Venture partner on certain properties. GFI made its election to sell its joint
venture interest in the Committee Bay prospect in exchange for seven million
shares in Committee Bay Resources (TSX:"CBR").
Bolivar and Cerro Corona
During the quarter the purchase of Cerro Corona and Bolivar was completed. The
purchase price is in the process of being allocated and this is expected to be
finalised by year end.
Implications of adopting IFRS2,
share-based payments
IFRS 2, Share-based payments becomes effective for Gold Fields for the
financial year ending 30 June 2006. In terms of the IFRS, Gold Fields now
recognises the cost of share options (share-based payments) from 1 July 2005.
IFRS 2 requires that all options granted after 7 November 2002, but not vested
by 1 July 2005 be accounted for.
Gold Fields" has adopted an appropriate valuation model to fair value the
employee share options. The value of the share options has been determined as
of the grant date of the options and has been expensed on a straight line basis
over the vesting period. Based on this model, the following costs for the
financial years ending after 7 November 2002 have been accounted for as
follows:
F2003 R5.2 million (US$0.8 million)
(against opening retained earnings)
F2004 R32.6 million (US$5.2 million)
(against opening retained earnings)
F2005 R52.0 million (US$8.4 million)
(restatement of F2005 comparatives)
F2006 R45.8 million (US$7.1 million)
(current year - September, December and
March quarters only)
The corresponding entry for the above adjustments was shareholders" equity
within the share-based payment reserve. The effect on opening shareholders"
equity is nil.
The financial 2005 annual net earnings of R180 million (US$29 million) have
been restated to R128 million (US$21 million), the difference being the share
based costs for that year. This cost of R52 million (US$8 million) has been
spread equally over the four quarters in financial 2005.
These costs are included in other expenses. Earnings per share, headline
earnings, headline earnings per share and diluted earnings per share have also
been restated. In F2006 the cost to date of R45.8 million (US$7.1 million) has
been included in other expenses as follows:
Quarter ended -
September 2005 - R15.6 million (US$2.4 million)
December 2005 - R15.6 million (US$2.4 million)
March 2006 - R14.6 million (US$2.3 million)
Total cash costs - Peer comparison
In order to compare total cash costs with our peer reporting gold companies, a
schedule is included below our normal Total cash cost calculation on page 16 to
show the effect of capitalising ore reserve development costs.
Off-reef development costs and a portion of direct shaft overheads are
capitalised in this pro-forma calculation. Users of this calculation should
bear in mind that this methodology would, should it be adopted, result in
higher capital expenditure and amortisation.
Outlook
Gold production for the June quarter should be similar to the March quarter,
with the forecast increase at Kloof offsetting shortfalls at some of the other
mines. Cash costs should therefore also be similar.
Basis of accounting
The unaudited results for the quarter and nine months have been prepared on the
International Financial Reporting Standards (IFRS) basis. The detailed
financial, operational and development results for the March 2006 quarter are
submitted in this report.
These consolidated quarterly statements are prepared in accordance with IAS 34,
Interim Financial Reporting. The accounting policies used in the preparation of
this report are consistent with those applied in the previous year-end, except
for the adoption of IFRS 2 - share based payments and the adoption of the
revised international accounting standards.
I.D. Cockerill
Chief Executive Officer
2 May 2006
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand Quarter Nine months to
Restated Restated
March December March March March
2006 2006
2005 2005 2005
Revenue 3,734.4 3,478.8 2,949.7 10,235.7 8,600.0
Operating costs 2,573.4 2,541.7 2,350.7 7,572.4 7,027.8
Gold inventory
change (26.4) (20.6) 62.1 (36.1) (57.5)
Operating profit 1,187.4 957.7 536.9 2,699.4 1,629.7
Amortisation
and
depreciation 383.6 375.6 371.1 1,112.6 1,120.9
Net operating
profit 803.8 582.1 165.8 1,586.8 508.8
Finance income 73.5 17.8 33.6 91.2 86.3
- Net interest
received (6.9) 16.8 33.7 10.7 65.5
- Gain/(loss)
on foreign
debt, net of
cash 80.4 1.0 (0.1) 80.5 20.8
(Loss)/gain on
financial
instruments (20.2) (18.8) (54.7) (47.8) 243.7
Other expenses (83.5) (29.0) (20.3) (131.3) (74.7)
Exploration (33.6) (54.1) (42.8) (153.9) (136.8)
Profit before
tax and
exceptional
items 740.0 498.0 81.6 1,345.0 627.3
Exceptional
gain/(loss) 53.2 1.8 (86.1) 57.7 (195.5)
Profit/(loss)
before taxation 793.2 499.8 (4.5) 1,402.7 431.8
Mining and
income taxation 224.5 200.2 (57.2) 469.7 163.2
- Normal
taxation 156.1 121.2 63.1 351.3 204.8
- Deferred
taxation 68.4 79.0 (120.3) 118.4 (41.6)
Net
profit/(loss) 568.7 299.6 52.7 933.0 268.6
Attributable to:
- Ordinary
shareholders 483.0 262.0 (1.8) 784.2 154.6
- Minority
shareholders 85.7 37.6 54.5 148.8 114.0
Exceptional
items:
Profit on sale
of investments 28.5 - 1.4 30.3 40.3
Profit on sale
of assets 24.5 - - 24.5 -
Harmony hostile
bid costs - - (87.5) - (170.4)
IAMGold
transaction
costs - - - - (64.8)
Retirement of
health care
obligations - - (4.8) - (4.8)
Other 0.2 1.8 4.8 2.9 4.2
Total
exceptional
items 53.2 1.8 (86.1) 57.7 (195.5)
Taxation (14.1) (0.6) 0.8 (14.7) (3.0)
Net exceptional
items after tax
and minorities 39.1 1.2 (85.3) 43.0 (198.5)
Net
earnings/(loss) 483.0 262.0 (1.8) 784.2 154.6
Net
earnings/(loss)
per share
(cents) 98 53 (1) 159 31
Diluted
earnings/(loss)
per share
(cents) 97 53 (1) 158 31
Headline
earnings/(loss) 445.9 260.7 (3.6) 742.8 117.7
Headline
earnings/(loss)
per share
(cents) 90 53 (1) 150 24
Net earnings
excluding gains
and losses on
financial
instruments and
foreign debt,
net of cash and
exceptional 376.0 274.7 114.5 694.4 183.3
items
Net earnings
per share
excluding gains
and losses on
financial
instruments and
foreign debt,
net of cash and
exceptional 76 56 23 141 37
items (cents)
Gold sold -
managed kg 34,104 34,381 35,993 101,457 103,758
Gold price
received
R/kg 109,500 101,184 81,952 100,887 82,885
Total cash
costs
R/kg 73,378 71,659 64,957 72,597 65,443
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
United States Dollars Quarter Nine months to
Restated Restated
March December March March March
2006 2006
2005 2005 2005
Revenue 602.2 533.5 495.2 1,599.3 1,400.7
Operating costs 416.5 389.8 395.1 1,183.2 1,144.6
Gold inventory
change (4.1) (3.2) 9.8 (5.6) (9.4)
Operating profit 189.8 146.9 90.3 421.7 265.5
Amortisation and
depreciation 62.0 57.6 62.4 173.8 182.6
Net operating
profit 127.8 89.3 27.9 247.9 82.9
Finance income 11.6 2.7 5.7 14.3 14.1
- Net interest
received (1.0) 2.6 5.6 1.7 10.7
- Gain/(loss) on
foreign debt, net
of cash 12.6 0.1 0.1 12.6 3.4
(Loss)/gain on
financial
instruments (3.3) (2.9) (8.1) (7.5) 39.7
Other expenses (13.2) (4.4) (3.4) (20.5) (12.2)
Exploration (5.5) (8.3) (7.2) (24.0) (22.3)
Profit before tax
and exceptional
items 117.4 76.4 14.9 210.2 102.2
Exceptional
gain/(loss) 8.3 0.3 (14.3) 9.0 (31.8)
Profit before
taxation 125.7 76.7 0.6 219.2 70.4
Mining and income
taxation 35.8 30.7 (8.7) 73.4 26.6
- Normal taxation 25.0 18.6 10.7 54.9 33.4
- Deferred
taxation 10.8 12.1 (19.4) 18.5 (6.8)
Net profit 89.9 46.0 9.3 145.8 43.8
Attributable to:
- Ordinary
shareholders 76.3 40.2 0.2 122.5 25.2
- Minority
shareholders 13.6 5.8 9.1 23.3 18.6
Exceptional items:
Profit on sale of
investments 4.4 - 0.4 4.7 6.6
Profit on sale of
assets 3.8 - - 3.8 -
Harmony hostile
bid costs - - (14.5) - (27.8)
IAMGold
transaction costs - - (0.2) - (10.6)
Retirement of
health care
obligations - - (0.8) - (0.8)
Other 0.1 0.3 0.8 0.5 0.8
Total exceptional
items 8.3 0.3 (14.3) 9.0 (31.8)
Taxation (2.1) (0.1) 0.1 (2.3) (0.5)
Net exceptional
items after tax
and minorities 6.2 0.2 (14.2) 6.7 (32.3)
Net earnings 76.3 40.2 0.2 122.5 25.2
Net earnings per
share (cents) 16 8 - 25 5
Diluted earnings
per share (cents) 16 8 - 25 5
Headline
earnings/(loss) 70.6 39.9 (0.2) 116.1 22.2
Headline earnings
per share (cents) 15 8 - 24 4
Net earnings
excluding gains
and losses on
financial
instruments and
foreign debt, net
of cash and
exceptional 59.7 42.1 21.0 108.5 36.2
items
Net earnings per
share excluding
gains and losses
on financial
instruments and
foreign debt, net
of cash and
exceptional 12 9 4 22 7
items (cents)
South African
rand/United
States dollar
conversion rate 6.14 6.53 5.95 6.40 6.14
South African
rand/Australian
dollar conversion
rate 4.56 4.88 4.62 4.80 4.58
Gold sold -
managed ozs(000) 1,097 1,105 1,157 3,262 3,336
Gold price
received $/oz 555 482 428 490 420
Total cash
costs $/oz 372 341 340 353 332
Balance sheet
International Financial Reporting Standards Basis
Figures are in millions otherwise stated
South African Rand United States Dollars
Restated Restated
March June March June
2006 2005 2006 2005
Property, plant
and equipment 19,436.0 16,959.5 3,094.9 2,531.3
Non-current assets 425.2 389.0 67.7 58.1
Investments 1,351.0 992.8 215.1 148.2
Current assets 3,982.6 5,656.1 634.2 844.2
- Other current assets 2,481.1 2,281.1 395.1 340.5
- Cash and deposits 1,501.5 3,375.0 239.1 503.7
Total assets 25,914.8 23,997.4 4,011.9 3,581.8
Shareholders" equity 16,668.4 16,534.1 2,654.2 2,467.8
Deferred taxation 3,295.4 3,249.8 524.7 485.0
Long-term loans 1,843.0 1,176.0 293.5 175.5
Environmental rehabilitation
provisions 919.9 905.8 146.5 135.2
Post-retirement health care
provisions 22.9 24.1 3.6 3.6
Current liabilities 2,445.2 2,107.6 389.4 314.7
- Other current liabilities 2,125.6 1,820.1 338.5 271.8
- Current portion of
long-term loans 319.6 287.5 50.9 42.9
Total equity
and liabilities 25,194.8 23,997.4 4,011.9 3,581.8
South African rand/US dollar
conversion rate 6.28 6.70
South African
rand/Australian dollar
conversion rate 4.41 5.15
Condensed statement of changes in equity
International Financial Reporting Standards Basis
Figures are in millions otherwise stated
South African Rand United States Dollars
Restated Restated
March March March March
2006 2005 2006 2005
Balance as at the beginning
of the financial year 16,534.1 14,949.3 2,467.8 2,372.9
Minority shareholders
interest now reflected in
shareholders equity - 662.9 - 105.2
Restated balance at the
beginning of the financial
year 16,534.1 15,612.2 2,467.8 2,478.1
Currency translation
adjustment and other (770.5) 182.9 45.1 74.0
Issue of share capital 0.9 0.4 0.1 0.1
Increase of share premium 46.1 21.7 7.2 3.5
Marked to market valuation
of listed investments and
instruments 247.7 111.0 38.7 18.1
Dividends (431.8) (344.4) (67.6) (54.5)
Increase in share based
payment reserve 46.4 39.0 7.3 6.4
Net profit attributable to
ordinary shareholders 784.2 154.6 122.5 25.2
Net profit attributable to
minority shareholders 148.8 114.0 23.3 18.6
Increase in minorities 62.5 38.2 9.8 8.1
Balance as at the end of
March 16,668.4 15,929.6 2,654.2 2,577.6
Reconciliation of headline earnings with net earnings
Figures are in millions otherwise stated
South African Rand
Restated
March December March
2006 2005 2005
Net earnings/(loss) 483.0 262.0 (1.8)
Profit on sale of investments (28.5) - (1.4)
Taxation effect of profit on sale of
investments 3.9 - 0.2
Profit on sale of assets (24.5) - -
Taxation effect of profit on sale of assets 9.7 - -
Other after tax adjustments 2.3 (1.3) (0.6)
Headline earnings/(loss) 445.9 260.7 (3.6)
Headline earnings per share - cents 90 53 (1)
United States Dollars
Restated
March December March
2006 2005 2005
Net earnings/(loss) 76.3 40.2 0.2
Profit on sale of investments (4.4) - (0.4)
Taxation effect of profit on sale of
investments 0.6 - -
Profit on sale of assets (3.8) - -
Taxation effect of profit on sale of assets 1.5 - -
Other after tax adjustments 0.4 (0.3) -
Headline earnings/(loss) 70.6 39.9 (0.2)
Headline earnings per share - cents 15 8 -
Based on headline earnings as given above divided by 493,790,542
(December 2005 - 492,600,779 and March 2005 - 492,144,121)
being the weighted average number of ordinary shares in issue
Cash flow statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand Quarter Nine months to
Restated Restated
March December March March March
2006 2005 2005 2006 2005
Cash flow
from
operating
activities 1,210.5 556.5 653.2 2,069.8 1,084.2
Profit
before tax
and
exceptional
items 740.0 498.0 81.6 1,345.0 627.3
Exceptional
items 53.2 1.8 (86.1) 57.7 (195.5)
Amortisation
and
depreciation 383.6 375.6 371.1 1,112.6 1,120.9
Change in
working
capital 228.7 (266.4) 266.0 (158.1) (79.3)
Taxation
paid (134.9) (57.1) (40.9) (269.7) (161.6)
Other
non-cash
items (60.1) 4.6 61.5 (17.7) (227.6)
Dividends
paid (235.0) - (146.5) (431.8) (407.5)
Ordinary
shareholders (197.7) - (147.7) (394.5) (344.4)
Minority
shareholders
in
subsidiaries (37.3) - 1.2 (37.3) (63.1)
Cash
utilised in
investing
activities (3,234.0) (429.4) (595.1) (3,994.0) (1,796.4)
Capital
expenditure
- additions (472.8) (401.6) (439.7) (1,199.6) (1,722.0)
Capital
expenditure
- proceeds
on disposal 21.9 3.6 - 29.7 40.1
Purchase of
subsid-
iaries (2,631.8) - - (2,631.8) -
Purchase of
investments (156.1) (26.8) (129.8) (195.0) (171.3)
Proceeds on
the
disposal of
investments 8.2 - 5.6 16.6 96.2
Environmental
and
post-retirement
health care
payments (3.4) (4.6) (31.2) (13.9) (39.4)
Cash
flow/(utili
sed)
from
financing
activities 835.8 6.4 (125.9) 635.6 (56.9)
Loans
received 986.7 - - 986.7 16.8
Loans repaid (147.5) - (132.7) (287.5) (206.7)
Minority
shareholder"s
loan
received (44.0) (66.6) - (110.6) 110.9
Shares
issued 40.6 73.0 6.8 47.0 22.1
Net cash
(outflow)
/inflow (1,422.7) 133.5 (214.3) (1,720.4) (1,176.6)
Translation
adjustment (13.0) 4.1 167.6 (153.1) (27.1)
Cash at
beginning
of period 2,937.2 2,799.6 2,977.5 3,375.0 4,134.5
Cash at end
of period 1,501.5 2,937.2 2,930.8 1,501.5 2,930.8
United States Dollars Quarter Nine months to
Restated Restated
March December March March March
2006 2005 2005 2006 2005
Cash flow from
operating
activities 191.0 89.8 106.2 327.8 177.2
Profit before tax
and exceptional
items 117.4 76.4 14.9 210.2 99.2
Exceptional items 8.3 0.3 (14.3) 9.0 (31.8)
Amortisation and
depreciation 62.0 57.6 62.4 173.8 182.6
Change in
working capital 34.6 (40.8) 42.4 (24.7) (12.9)
Taxation paid (22.0) (4.4) (8.4) (37.7) (25.9)
Other non-cash
items (9.3) 0.7 9.2 (2.8) (34.0)
Dividends paid (38.2) - (25.1) (67.6) (64.6)
Ordinary
shareholders (32.4) - (25.1) (61.8) (54.5)
Minority
shareholders
in subsidiaries (5.8) - - (5.8) (10.1)
Cash utilised in
investing
activities (524.1) (65.8) (100.0) (640.7) (292.6)
Capital
expenditure
- additions (75.9) (61.6) (75.0) (187.4) (280.5)
Capital
expenditure
- proceeds on
disposal 3.4 0.6 0.1 4.6 6.5
Purchase of
subsidiaries (427.8) - - (427.8) -
Purchase of
investments (24.5) (4.1) (21.2) (30.5) (27.9)
Proceeds on the
disposal of
investments 1.3 - 1.2 2.6 15.7
Environmental and
post-retirement
health care
payments (0.6) (0.7) (5.1) (2.2) (6.4)
Cash
flow/(utilised)
from financing
activities 129.8 0.7 (21.0) 98.8 (10.3)
Loans received 154.2 - - 154.2 2.7
Loans repaid (23.4) - (22.1) (44.9) (33.7)
Minority
shareholder"s
loan received (7.3) (10.5) - (17.8) 17.1
Shares issued 6.3 11.2 1.1 7.3 3.6
Net cash
(outflow)/inflow (241.5) 24.7 (39.9) (281.7) (190.3)
Translation
adjustment 19.5 (5.9) (8.3) 17.1 8.2
Cash at
beginning of
period 461.1 442.3 522.4 503.7 656.3
Cash at end of
period 239.1 461.1 474.2 239.1 474.2
Hedging / Derivatives
Policy
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 and interest rate financial instruments
- those remaining are described in the schedule. It has been decided not to
account for these instruments under the hedge accounting rules of IAS 39 and
accordingly the positions have been marked to market.
Position at end of March 2006
On 7 January 2004, Gold Fields Australia closed out its Australian
dollar/United States dollar currency financial instruments. The existing
forward purchases of Australian dollars and the put and call options were
closed out by entering into equal and opposite transactions. The close out of
the outstanding open position of US$275 million was at an average spot rate of
0.7670 US$/A$. These transactions locked in gross profit amounting to US$115.7
million and the underlying cash receipts were deferred to match the maturity
dates of the original transactions. An amount of US$102.8 million had already
been accounted for up until the end of December 2003. In addition, in order
that the Group was able to participate in further Australian dollar
appreciation, a strip of quarterly maturing Australian dollar/US dollar call
options were purchased in respect of an amount of US$275 million of which the
value dates and amounts match those of the original structure.
The Australian dollar call options resulted in a premium of US$8.3 million. The
payment of the premium will be effected so as to match the maturity dates of
the original structure. The average strike price of the options is 0.7670
US$/A$.
Subsequent to this, on 7 May 2004, the future US dollar values were fixed in
Australian dollars to take advantage of the weakened Australian dollar against
the US dollar at that time. The original value of the future cash flows was
US$107.4 million or A$140.0 million at 0.7670 US$/A$, the rate at the time of
the original transaction. The value fixed in Australian dollars amounted to
A$147 million, based on the spot rate on 7 May 2004 of 0.7158 US$/A$. The
balance of A$51.1 million not yet realised in cash is detailed below:
Payment value dates Future cash flows - A$ million
31 March 2006 13.3
30 June 2006 12.9
29 September 2006 12.6
29 December 2006 12.3
TOTAL 51.1
The balance of the unmatured call options purchased at a total cost of
US$8.3 million, are detailed below:
US Dollars / Australian Dollars call options
Year ended 30 June 2006 2007 TOTAL
Australian dollar call options:
Amount (US dollars) - 000"s 25,000 75,000 100,000
Average strike price - (US$/A$) 0.7670 0.7670 0.7670
The marked to market value of all transactions making up the positions in the
above table was a positive US$0.2 million. This was based on an exchange rate
of A$/US$ 0.7022. The value was based on the prevailing interest rates and
volatilities at the time.
US Dollars / Rand forward purchases
Year ended 30 June 2006 2007 TOTAL
Forward purchases:
Amount (US Dollars) - 000"s 30,000 - 30,000
Average rate - (ZAR/US$) 6.5522 - 6.5522
The marked to market value of all transactions making up the positions in the
above table was a negative R7.2 million (US$1.2 million). The value was based
on an exchange rate of ZAR/US$6.28 and the prevailing interest rates and
volatilities at the time.
International Petroleum Exchange (IPE) Gasoil call options
Gold Fields Ghana purchased a one year Asian style (average monthly price) call
option at the spot price ruling on that day of US$0.42 per litre (approximately
US$500 per metric ton) in respect of 51.6 million litres of diesel, settled
monthly, to protect against adverse energy price movements. The call option
resulted in a premium of US$1.66 million, paid upfront, at a strike price of
US$0.45 per litre. The balance of the unexpired options are given below.
Year ended 30 June 2006 2007 TOTAL
Forward purchases:
Amount (litres) - 000"s 17,028 - 17,028
Strike price - US$/litre 0.45 - 0.45
Conversion factor from US dollar per metric ton to US dollar cents per litre =
1,185 i.e. US$/litre 0.45 equates to US$533 per metric ton.
The marked to market value of all transactions making up the position above was
a positive US$0.4 million. The value was based on an IPE Gasoil price of
US$0.4711 per litre (US$558 per metric ton). The value was based on the
prevailing interest rates and volatilities at the time.
Total cash costs
Gold Institute Industry Standard
All figures are in Rand millions unless otherwise stated
South African Operations
Total Mine
Operations Total
Operating costs (1) March 2006 2,573.4 1,704.9
December 2005 2,541.7 1,732.1
Financial year to date 7,572.4 5,108.6
Gold-in-process and March 2006 (17.4) -
inventory change* December 2005 (14.5) -
Financial year to date (20.4) -
Less: Rehabilitation
costs March 2006 9.8 9.4
December 2005 9.7 9.4
Financial year to date 29.3 28.2
Production taxes March 2006 8.7 8.7
December 2005 8.3 8.3
Financial year to date 25.8 25.8
General and admin March 2006 87.1 48.5
December 2005 89.7 55.1
Financial year to date 268.9 160.4
Cash operating costs March 2006 2,450.4 1,638.3
December 2005 2,419.5 1,659.3
Financial year to date 7,228.0 4,894.2
Plus: Production
taxes March 2006 8.7 8.7
December 2005 8.3 8.3
Financial year to date 25.8 25.8
Royalties March 2006 43.4 -
December 2005 35.9 -
Financial year to date 111.7 -
TOTAL CASH COSTS (2) March 2006 2,502.5 1,647.0
December 2005 2,463.7 1,667.6
Financial year to date 7,365.5 4,920.0
Plus:
Amortisatio
n* March 2006 348.9 153.0
December 2005 344.4 159.1
Financial year to date 1,021.2 453.3
Rehabilitation Marc 2006 9.8 9.4
December 2005 9.7 9.4
Financial year to date 29.3 28.2
TOTAL PRODUCTION COSTS (3) March 2006 2,861.2 1,809.4
December 2005 2,817.8 1,836.1
Financial year to date 8,416.0 5,401.5
Gold sold - thousand
ounces March 2006 1,096.5 646.4
December 2005 1,105.4 697.6
Financial year to date 3,261.9 1,990.8
TOTAL CASH COSTS March 2006 372 415
- US$/oz December 2005 341 366
Financial year to date 353 386
TOTAL PRODUCTION COSTS March 2006 425 456
- US$/oz December 2005 390 403
Financial year to date 403 424
TOTAL CASH COSTS EXCLUDING ORE RESERVE DEVELOPMENT COSTS
(IN LINE WITH PEER GROUP REPORTING)
TOTAL CASH COSTS (2) March 2006 2,502.5 1,647.0
December 2005 2,463.7 1,667.6
Financial year to date 7,365.5 4,920.0
Less: March 2006 184.8 184.8
Ore reserve development
costs December 2005 194.3 194.3
Financial year to date 564.5 564.5
ADJUSTED TOTAL CASH COSTS March 2006 2,317.7 1,462.2
December 2005 2,269.4 1,473.3
Financial year to date 6,801.0 4,355.5
Gold sold - kilograms March 2006 34,104 20,106
December 2005 34,381 21,697
Financial year to date 101,457 61,922
Gold sold - thousand
ounces March 2006 1,096.5 646.4
December 2005 1,105.4 697.6
Financial year to date 3,261.9 1,990.8
ADJUSTED TOTAL CASH COSTS March 2006 67,960 72,725
- R/kilogram December 2005 66,007 67,903
Financial year to date 67,033 70,338
ADJUSTED TOTAL CASH COSTS March 2006 344 368
- US$/oz December 2005 314 323
Financial year to date 326 342
Driefontein Kloof
Operating costs (1) March 2006 680.5 615.6
December 2005 674.6 648.3
Financial year to date 2,011.1 1 ,888.6
Gold-in-process and March 2006 - -
inventory change* December 2005 - -
Financial year to date - -
Less:
Rehabilitat
ion costs March 2006 2.8 4.1
December 2005 2.8 4.1
Financial year to date 8.4 12.3
Production taxes March 2006 4.1 3.3
December 2005 3.7 3.7
Financial year to date 11.9 10.8
General and admin March 2006 20.4 17.5
December 2005 22.8 20.6
Financial year to date 66.5 59.0
Cash operating costs March 2006 653.2 590.7
December 2005 645.3 619.9
Financial year to date 1,924.3 1 ,806.5
Plus:
Production
taxes March 2006 4.1 3.3
December 2005 3.7 3.7
Financial year to date 11.9 10.8
Royalties March 2006 - -
December 2005 - -
Financial year to date - -
TOTAL CASH COSTS (2) March 2006 657.3 594.0
December 2005 649.0 623.6
Financial year to date 1,936.2 1 ,817.3
Plus:
Amortis-
ation* March 2006 60.9 57.7
December 2005 61.5 70.2
Financial year to date 183.7 186.2
Rehabilitation Marc 2006 2.8 4.1
December 2005 2.8 4.1
Financial year to date 8.4 12.3
TOTAL PRODUCTION
COSTS (3) March 2006 721.0 655.8
December 2005 713.3 697.9
Financial year to date 2,128.3 2 ,015.8
Gold sold - thousand
ounces March 2006 284.5 207.1
December 2005 290.1 252.6
Financial year to date 864.4 678.0
TOTAL CASH COSTS March 2006 376 467
- US$/oz December 2005 343 378
Financial year to date 350 419
TOTAL PRODUCTION COSTS March 2006 413 516
- US$/oz December 2005 377 423
Financial year to date 385 465
TOTAL CASH COSTS (2) March 200 6 657.3 594.0
December 200 5 649.0 623.6
Financial year to date 1,936.2 1,817.3
Less: March 2006 66.7 64.0
Ore reserve
development costs December 2005 72.1 69.0
Financial year to date 212.8 193.8
ADJUSTED TOTAL CASH
COSTS March 2006 590.6 530.0
December 2005 576.9 554.6
Financial year to date 1,723.4 1,623.5
Gold sold - kilograms March 2006 8,849 6,440
December 2005 9,022 7,857
Financial year to date 26,886 21,089
Gold sold - thousand
ounces March 2006 284.5 207.1
December 2005 290.1 252.6
Financial year to date 864.4 678.0
ADJUSTED TOTAL CASH
COSTS March 2006 66,742 82,298
- R/kilogram December 2005 63,944 70,587
Financial year to date 64,100 76,983
ADJUSTED TOTAL CASH
COSTS March 2006 338 417
- US$/oz December 2005 305 336
Financial year to date 312 374
Beatrix
Operating costs (1) March 2006 408.8
December 2005 409.2
Financial year to date 1,208.9
Gold-in-process and March 2006 -
inventory change* December 2005 -
Financial year to date -
Less: Rehabilitation costs March 2006 2.5
December 2005 2.5
Financial year to date 7.5
Production taxes March 2006 1.3
December 2005 0.9
Financial year to date 3.1
General and admin March 2006 10.6
December 2005 11.7
Financial year to date 34.9
Cash operating costs March 2006 394.4
December 2005 394.1
Financial year to date 1,163.4
Plus: Production taxes March 2006 1.3
December 2005 0.9
Financial year to date 3.1
Royalties March 2006 -
December 2005 -
Financial year to date -
TOTAL CASH COSTS (2) March 2006 395.7
December 2005 395.0
Financial year to date 1,166.5
Plus: Amortisation* March 2006 34.4
December 2005 27.4
Financial year to date 83.4
Rehabilitation Marc 2006 2.5
December 2005 2.5
Financial year to date 7.5
TOTAL PRODUCTION COSTS (3) March 2006 432.6
December 2005 424.9
Financial year to date 1,257.4
Gold sold - thousand ounces March 2006 154.9
December 2005 154.9
Financial year to date 448.4
TOTAL CASH COSTS March 2006 416
- US$/oz December 2005 391
Financial year to date 406
TOTAL PRODUCTION COSTS March 2006 455
- US$/oz December 2005 420
Financial year to date 438
TOTAL CASH COSTS (2) March 2006 395.7
December 2005 395.0
Financial year to date 1,166.5
Less: March 2006 54.1
Ore reserve development costs December 2005 53.2
Financial year to date 157.9
ADJUSTED TOTAL CASH COSTS March 2006 341.6
December 2005 341.8
Financial year to date 1,008.6
Gold sold - kilograms March 2006 4,817
December 2005 4,818
Financial year to date 13,947
Gold sold - thousand ounces March 2006 154.9
December 2005 154.9
Financial year to date 448.4
ADJUSTED TOTAL CASH COSTS March 2006 70,916
- R/kilogram December 2005 70,942
Financial year to date 72,317
ADJUSTED TOTAL CASH COSTS March 2006 359
- US$/oz December 2005 338
Financial year to date 351
International Operations
Total
Operating costs (1) March 2006 868.5
December 2005 809.6
Financial year to date 2,463.8
Gold-in-process and March 2006 (17.4)
inventory change* December 2005 (14.5)
Financial year to date (20.4)
Less: Rehabilitation costs March 2006 0.4
December 2005 0.3
Financial year to date 1.1
Production taxes March 2006 -
December 2005 -
Financial year to date -
General and admin March 2006 38.6
December 2005 34.6
Financial year to date 108.5
Cash operating costs March 2006 812.1
December 2005 760.2
Financial year to date 2,333.8
Plus: Production taxes March 2006 -
December 2005 -
Financial year to date -
Royalties March 2006 43.4
December 2005 35.9
Financial year to date 111.7
TOTAL CASH COSTS (2) March 2006 855.5
December 2005 796.1
Financial year to date 2,445.5
Plus: Amortisation* March 2006 195.9
December 2005 185.3
Financial year to date 567.9
Rehabilitation Marc 2006 0.4
December 2005 0.3
Financial year to date 1.1
TOTAL PRODUCTION COSTS (3) March 2006 1,051.8
December 2005 981.7
Financial year to date 3,014.5
Gold sold - thousand ounces March 2006 450.0
December 2005 407.8
Financial year to date 1,271.1
TOTAL CASH COSTS March 2006 310
- US$/oz December 2005 299
Financial year to date 301
TOTAL PRODUCTION COSTS March 2006 381
- US$/oz December 2005 369
Financial year to date 371
TOTAL CASH COSTS (2) March 2006 855.5
December 2005 796.1
Financial year to date 2,445.5
Less: March 2006 -
Ore reserve development costs December 2005 -
Financial year to date -
ADJUSTED TOTAL CASH COSTS March 2006 855.5
December 2005 796.1
Financial year to date 2,445.5
Gold sold - kilograms March 2006 13,998
December 2005 12,684
Financial year to date 39,535
Gold sold - thousand ounces March 2006 450.0
December 2005 407.8
Financial year to date 1,271.1
ADJUSTED TOTAL CASH COSTS March 2006 61,116
- R/kilogram December 2005 62,764
Financial year to date 61,857
ADJUSTED TOTAL CASH COSTS March 2006 310
- US$/oz December 2005 299
Financial year to date 301
Ghana
Tarkwa Damang
Operating costs (1) March 2006 344.1 123.4
December 2005 322.3 123.3
Financial year to date 984.6 370.8
Gold-in-process and March 2006 (0.7) 4 .0
inventory change* December 2005 (14.2) 4.2
Financial year to date (17.7) 2 1 .6
Less: Rehabilitation
costs March 2006 0.4 -
December 2005 0.3 -
Financial year to date 1.1 -
Production taxes March 2006 - -
December 2005 - -
Financial year to date - -
General and admin March 2006 20.1 3.0
December 2005 16.4 3.1
Financial year to date 52.2 9.0
Cash operating costs March 2006 322.9 124.4
December 2005 291.4 124.4
Financial year to date 913.6 383.4
Plus: Production
taxes March 2006 - -
December 2005 - -
Financial year to date - -
Royalties March 2006 19.8 6.5
December 2005 15.7 5.2
Financial year to date 50.4 16.9
TOTAL CASH COSTS EXCLUDING ORE RESERVE DEVELOPMENT COSTS
(IN LINE WITH PEER GROUP REPORTING)
TOTAL CASH COSTS (2) March 2006 342.7 130.9
December 2005 307.1 129.6
Financial year to date 964.0 400.3
Plus:
Amortisation* March 2006 61.5 6.1
December 2005 54.6 5.8
Financial year to date 176.6 19.1
Rehabilitation Marc 2006 0 .4 -
December 2005 0 .3 -
Financial year to date 1 .1 -
TOTAL PRODUCTION COSTS (3) March 2006 404.6 137.0
December 2005 362.0 135.4
Financial year to date 1,141.7 419.4
Gold sold - thousand
ounces March 2006 192.4 62.0
December 2005 166.6 60.2
Financial year to date 533.2 179.4
TOTAL CASH COSTS March 2006 290 344
- US$/oz December 2005 282 330
Financial year to date 282 349
TOTAL PRODUCTION COSTS March 2006 343 360
- US$/oz December 2005 333 345
Financial year to date 335 365
TOTAL CASH COSTS EXCLUDING ORE RESERVE DEVELOPMENT COSTS
(IN LINE WITH PEER GROUP REPORTING)
TOTAL CASH COSTS (2) March 2006 342.7 130.9
December 2005 307.1 129.6
Financial year to date 964.0 400.3
Less: March 2006 - -
Ore reserve development
costs December 2005 - -
Financial year to date - -
ADJUSTED TOTAL CASH COSTS March 2006 342.7 130.9
December 2005 307.1 129.6
Financial year to date 964.0 400.3
Gold sold - kilograms March 2006 5,984 1,929
December 2005 5,183 1,871
Financial year to date 16,585 5,579
Gold sold - thousand
ounces March 2006 192.4 62.0
December 2005 166.6 60.2
Financial year to date 533.2 179.4
ADJUSTED TOTAL CASH COSTS March 2006 57,269 67,859
- R/kilogram December 2005 59,251 69,268
Financial year to date 58,125 71,751
ADJUSTED TOTAL CASH COSTS March 2006 290 344
- US$/oz December 2005 282 330
Financial year to date 282 349
Venezuela
Choco 10
Operating costs (1) March 2006 14.9
December 2005 -
Financial year to date 14.9
Gold-in-process and March 2006 (5.4)
inventory change* December 2005 -
Financial year to date (5.4)
Less: Rehabilitation costs March 2006 -
December 2005 -
Financial year to date -
Production taxes March 2006 -
December 2005 -
Financial year to date -
General and admin March 2006 0.4
December 2005 -
Financial year to date 0.4
Cash operating costs March 2006 9.1
December 2005 -
Financial year to date 9.1
Plus: Production taxes March 2006 -
December 2005 -
Financial year to date -
Royalties March 2006 0.7
December 2005 -
Financial year to date 0.7
TOTAL CASH COSTS EXCLUDING ORE RESERVE DEVELOPMENT COSTS
(IN LINE WITH PEER GROUP REPORTING)
TOTAL CASH COSTS (2) March 2006 9.8
December 2005 -
Financial year to date 9.8
Plus: Amortisation* March 2006 0.2
December 2005 -
Financial year to date 0.2
Rehabilitation Marc 2006 -
December 2005 -
Financial year to date -
TOTAL PRODUCTION COSTS (3) March 2006 10.0
December 2005 -
Financial year to date 10.0
Gold sold - thousand ounces March 2006 5.4
December 2005 -
Financial year to date 5.4
TOTAL CASH COSTS March 2006 294
- US$/oz December 2005 -
Financial year to date 294
TOTAL PRODUCTION COSTS March 2006 300
- US$/oz December 2005 -
Financial year to date 300
TOTAL CASH COSTS EXCLUDING ORE RESERVE DEVELOPMENT COSTS
(IN LINE WITH PEER GROUP REPORTING)
TOTAL CASH COSTS (2) March 2006 9.8
December 2005 -
Financial year to date 9.8
Less: March 2006 -
Ore reserve development costs December 2005 -
Financial year to date -
ADJUSTED TOTAL CASH COSTS March 2006 9.8
December 2005 -
Financial year to date 9.8
Gold sold - kilograms March 2006 169
December 2005 -
Financial year to date 169
Gold sold - thousand ounces March 2006 5.4
December 2005 -
Financial year to date 5.4
ADJUSTED TOTAL CASH COSTS March 2006 57,988
- R/kilogram December 2005 -
Financial year to date 57,988
ADJUSTED TOTAL CASH COSTS March 2006 294
- US$/oz December 2005 -
Financial year to date 294
Australia #
St Ives Agnew
Operating costs (1) March 2006 292.6 93.4
December 2005 267.2 96.8
Financial year to date 804.2 289.3
Gold-in-process and March 2006 (18.2) 2 .9
inventory change* December 2005 (4.2) (0.3)
Financial year to date (18.6) (0.3)
Less: Rehabilitation
costs March 2006 - -
December 2005 - -
Financial year to date - -
Production taxes March 2006 - -
December 2005 - -
Financial year to date - -
General and admin March 2006 10.4 4.7
December 2005 8.7 6.4
Financial year to date 28.4 18.5
Cash operating costs March 2006 264.1 91.6
December 2005 254.3 90.1
Financial year to date 757.2 270.5
Plus: Production
taxes March 2006 - -
December 2005 - -
Financial year to date - -
Royalties March 2006 11.6 4.8
December 2005 10.6 4.4
Financial year to date 30.1 13.6
TOTAL CASH COSTS EXCLUDING ORE RESERVE DEVELOPMENT COSTS
(IN LINE WITH PEER GROUP REPORTING)
TOTAL CASH COSTS (2) March 2006 275.7 96.4
December 2005 264.9 94.5
Financial year to date 787.3 284.1
Plus: Amortisation* March 2006 128.1
December 2005 124.9
Financial year to date 372.0
Rehabilitation Marc 2006 -
December 2005 -
Financial year to date -
TOTAL PRODUCTION COSTS (3) March 2006 500.2
December 2005 484.3
Financial year to date 1,443.4
Gold sold - thousand ounces March 2006 134.3 55.9
December 2005 125.9 55.1
Financial year to date 380.0 173.1
TOTAL CASH COSTS March 2006 334 281
- US$/oz December 2005 322 262
Financial year to date 324 256
TOTAL PRODUCTION COSTS March 2006 428
- US$/oz December 2005 410
Financial year to date 408
TOTAL CASH COSTS EXCLUDING ORE RESERVE DEVELOPMENT COSTS
(IN LINE WITH PEER GROUP REPORTING)
TOTAL CASH COSTS (2) March 2006 275.7 96.4
December 2005 264.9 94.5
Financial year to date 787.3 284.1
Less: March 2006 - -
Ore reserve development costs December 2005 - -
Financial year to date - -
ADJUSTED TOTAL CASH COSTS March 2006 275.7 96.4
December 2005 264.9 94.5
Financial year to date 787.3 284.1
Gold sold - kilograms March 2006 4,176 1,740
December 2005 3,915 1,715
Financial year to date 11,818 5,384
Gold sold - thousand ounces March 2006 134.3 55.9
December 2005 125.9 55.1
Financial year to date 380.0 173.1
ADJUSTED TOTAL CASH COSTS March 2006 66,020 55,402
- R/kilogram December 2005 67,663 55,102
Financial year to date 66,619 52,767
ADJUSTED TOTAL CASH COSTS March 2006 334 281
- US$/oz December 2005 322 262
Financial year to date 324 256
Note: Users of the restated total cash cost number must bear in mind that this
methodology will result in higher capital expenditure and amortisation.
DEFINITIONS
Total cash costs and Total production costs 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 costs - Operating costs less off-mine costs, including general
and administration costs, as detailed in the table above.
(3) Total production costs - Total cash costs plus amortisation/depreciation
and rehabilitation provisions, as detailed in the table above.
* Adjusted for amortisation/depreciation (non-cash item) excluded from gold in
process change.
Average exchange rates are US$1 = R6.14 and US$1 = R6.53 for the March 2006 and
December 2005 quarters respectively. Year to date US$1 = R6.40.
# 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.
Operating and financial results
South African Rand Total Mine
Operations Total
Operating Results
Ore milled/treated (000
tons) March 2006 12,738 3,585
December 2005 12,089 3,565
Financial year to date 36,715 10,470
Yield (grams per ton) March 2006 2.7 5.6
December 2005 2.8 6.1
Financial year to date 2.8 5.9
Gold produced (kilograms) March 2006 34,104 20,106
December 2005 34,381 21,697
Financial year to date 101,457 61,922
Gold sold (kilograms) March 2006 34,104 20,106
December 2005 34,381 21,697
Financial year to date 101,457 61,922
Gold price received (Rand
per kilogram) March 2006 109,500 108,813
December 2005 101,184 101,069
Financial year to date 100,887 100,486
Total cash costs (Rand
per kilogram) March 2006 73,378 81,916
December 2005 71,659 76,859
Financial year to date 72,597 79,455
Total production costs
(Rand per kilogram) March 2006 83,896 89,993
December 2005 81,958 84,625
Financial year to date 82,951 87,231
Operating costs (Rand per
ton) March 2006 202 476
December 2005 210 486
Financial year to date 206 488
Financial Results (Rand
million)
Revenue March 2006 3,734.4 2,187.8
December 2005 3,478.8 2,192.9
Financial year to date 10,235.7 6,222.3
Operating costs March 2006 2,573.4 1,704.9
December 2005 2,541.7 1,732.1
Financial year to date 7,572.4 5,108.6
Gold inventory change March 2006 (26.4) -
December 2005 (20.6) -
Financial year to date (36.1) -
Operating profit March 2006 1,187.4 482.9
December 2005 957.7 460.8
Financial year to date 2,699.4 1,113.7
Amortisation of mining
assets March 2006 357.9 153.0
December 2005 350.5 159.1
Financial year to date 1,036.9 453.3
Net operating profit March 2006 829.5 329.9
December 2005 607.2 301.7
Financial year to date 1,662.5 660.4
Other income/(expense) March 2006 (25.0) (29.6)
December 2005 (43.2) (32.3)
Financial year to date (94.3) (100.4)
Profit before taxation March 2006 804.5 300.3
December 2005 564.0 269.4
Financial year to date 1,568.2 560.0
Mining and income taxation March 2006 202.5 104.8
December 2005 206.1 83.2
Financial year to date 458.5 152.6
- Normal taxation March 2006 115.1 59.8
December 2005 111.1 40.5
Financial year to date 295.9 113.7
- Deferred taxation March 2006 87.4 45.0
December 2005 95.0 42.7
Financial year to date 162.6 38.9
Profit before exceptional
items March 2006 602.0 195.5
December 2005 357.9 186.2
Financial year to date 1,109.7 407.4
Exceptional items March 2006 22.7 23.6
December 2005 1.9 0.8
Financial year to date 25.4 24.8
Net profit March 2006 624.7 219.1
December 2005 359.8 187.0
Financial year to date 1,135.1 432.2
March 2006 612.5 204.5
Net profit excluding
gains and losses on
financial
instruments and foreign
debt and exceptional December 2005 375.0 186.6
items Financial year to date 1,131.9 417.0
Capital expenditure March 2006 424.4 164.3
December 2005 391.3 168.7
Financial year to date 1,131.1 466.4
Planned for next six months to September 2006 1,115.0 461.6
South African Operations
South African Rand
Driefontein Kloof
Operating Results
Ore milled/treated (000
tons) March 2006 1,831 849
December 2005 1,684 950
Financial year to date 5,129 2,674
Yield (grams per ton) March 2006 4.8 7.6
December 2005 5.4 8.3
Financial year to date 5.2 7.9
Gold produced (kilograms) March 2006 8,849 6,440
December 2005 9,022 7,857
Financial year to date 26,886 21,089
Gold sold (kilograms) March 2006 8,849 6,440
December 2005 9,022 7,857
Financial year to date 26,886 21,089
Gold price received
(Rand per kilogram) March 2006 108,487 109,224
December 2005 101,064 100,967
Financial year to date 100,275 100,417
Total cash costs (Rand
per kilogram) March 2006 74,280 92,236
December 2005 71,935 79,369
Financial year to date 72,015 86,173
Total production costs
(Rand per kilogram) March 2006 81,478 101,832
December 2005 79,062 88,825
Financial year to date 79,160 95,585
Operating costs (Rand
per ton) March 2006 372 725
December 2005 401 682
Financial year to date 392 706
Financial Results (Rand
million)
Revenue March 2006 960.0 703.4
December 2005 911.8 793.3
Financial year to date 2,696.0 2,117.7
Operating costs March 2006 680.5 615.6
December 2005 674.6 648.3
Financial year to date 2,011.1 1,888.6
Gold inventory change March 2006 - -
December 2005 - -
Financial year to date - -
Operating profit March 2006 279.5 87.8
December 2005 237.2 145.0
Financial year to date 684.9 229.1
Amortisation of mining
assets March 2006 60.9 57.7
December 2005 61.5 70.2
Financial year to date 183.7 186.2
Net operating profit March 2006 218.6 30.1
December 2005 175.7 74.8
Financial year to date 501.2 42.9
Other income/(expense) March 2006 (9.8) (8.5)
December 2005 (11.2) (8.4)
Financial year to date (32.3) (29.1)
Profit before taxation March 2006 208.8 21.6
December 2005 164.5 66.4
Financial year to date 468.9 13.8
Mining and income
taxation March 2006 63.9 9.5
December 2005 46.3 20.1
Financial year to date 124.4 (7.2)
- Normal taxation March 2006 5 9 .8 -
December 2005 4 0 .5 -
Financial year to date 113.7 -
- Deferred taxation March 2006 4.1 9.5
December 2005 5.8 20.1
Financial year to date 10.7 (7.2)
Profit before
exceptional items March 2006 144.9 12.1
December 2005 118.2 46.3
Financial year to date 344.5 21.0
Exceptional items March 2006 0.8 16.7
December 2005 0.1 -
Financial year to date 0.9 16.7
Net profit March 2006 145.7 28.8
December 2005 118.3 46.3
Financial year to date 345.4 37.7
March 2006 145.1 18.6
Net profit excluding
gains and losses on
financial
instruments and foreign
debt and exceptional December 2005 118.3 46.3
items Financial year to date 344.8 27.5
Capital expenditure March 2006 54.3 45.8
December 2005 60.6 53.4
Financial year to date 161.6 141.9
Planned for next six months to September 2006 152.8 158.3
South African Rand
Beatrix
Operating Results
Ore milled/treated (000 tons) March 2006 905
December 2005 931
Financial year to date 2,667
Yield (grams per ton) March 2006 5.3
December 2005 5.2
Financial year to date 5.2
Gold produced (kilograms) March 2006 4,817
December 2005 4,818
Financial year to date 13,947
Gold sold (kilograms) March 2006 4,817
December 2005 4,818
Financial year to date 13,947
Gold price received (Rand per kilogram) March 2006 108,864
December 2005 101,245
Financial year to date 100,997
Total cash costs (Rand per kilogram) March 2006 82,147
December 2005 81,984
Financial year to date 83,638
Total production costs (Rand per
kilogram) March 2006 89,807
December 2005 88,190
Financial year to date 90,156
Operating costs (Rand per ton) March 2006 452
December 2005 440
Financial year to date 453
Financial Results (Rand million)
Revenue March 2006 524.4
December 2005 487.8
Financial year to date 1,408.6
Operating costs March 2006 408.8
December 2005 409.2
Financial year to date 1,208.9
Gold inventory change March 2006 -
December 2005 -
Financial year to date -
Operating profit March 2006 115.6
December 2005 78.6
Financial year to date 199.7
Amortisation of mining assets March 2006 34.4
December 2005 27.4
Financial year to date 83.4
Net operating profit March 2006 81.2
December 2005 51.2
Financial year to date 116.3
Other income/(expense) March 2006 (11.3)
December 2005 (12.7)
Financial year to date (39.0)
Profit before taxation March 2006 69.9
December 2005 38.5
Financial year to date 77.3
Mining and income taxation March 2006 31.4
December 2005 16.8
Financial year to date 35.4
- Normal taxation March 2006 -
December 2005 -
Financial year to date -
- Deferred taxation March 2006 31.4
December 2005 16.8
Financial year to date 35.4
Profit before exceptional items March 2006 38.5
December 2005 21.7
Financial year to date 41.9
Exceptional items March 2006 6.1
December 2005 0.7
Financial year to date 7.2
Net profit March 2006 44.6
December 2005 22.4
Financial year to date 49.1
March 2006 40.8
Net profit excluding gains and losses on
financial
instruments and foreign debt and
exceptional December 2005 22.0
items Financial year to date 44.7
Capital expenditure March 2006 64.2
December 2005 54.7
Financial year to date 162.9
Planned for next six months to September 2006 150.5
Operating and financial results
International Operations
South African Rand
Total
Operating Results
Ore milled/treated (000 tons) March 2006 9,153
December 2005 8,524
Financial year to date 26,245
Yield (grams per ton) March 2006 1.5
December 2005 1.5
Financial year to date 1.5
Gold produced (kilograms) March 2006 13,998
December 2005 12,684
Financial year to date 39,535
Gold sold (kilograms) March 2006 13,998
December 2005 12,684
Financial year to date 39,535
Gold price received (Rand per kilogram) March 2006 110,487
December 2005 101,380
Financial year to date 101,515
Total cash costs (Rand per kilogram) March 2006 61,116
December 2005 62,764
Financial year to date 61,857
Total production costs (Rand per
kilogram) March 2006 75,139
December 2005 77,397
Financial year to date 76,249
Operating costs (Rand per ton) March 2006 95
December 2005 95
Financial year to date 94
Financial Results (Rand million)
Revenue March 2006 1,546.6
December 2005 1,285.9
Financial year to date 4,013.4
Operating costs March 2006 868.5
December 2005 809.6
Financial year to date 2,463.8
Gold inventory change March 2006 (26.4)
December 2005 (20.6)
Financial year to date (36.1)
Operating profit March 2006 704.5
December 2005 496.9
Financial year to date 1,585.7
Amortisation of mining assets March 2006 204.9
December 2005 191.4
Financial year to date 583.6
Net operating profit March 2006 499.6
December 2005 305.5
Financial year to date 1,002.1
Other income/(expense) March 2006 4.6
December 2005 (10.9)
Financial year to date 6.1
Profit before taxation March 2006 504.2
December 2005 294.6
Financial year to date 1,008.2
Mining and income taxation March 2006 97.7
December 2005 122.9
Financial year to date 305.9
- Normal taxation March 2006 55.3
December 2005 70.6
Financial year to date 182.2
- Deferred taxation March 2006 42.4
December 2005 52.3
Financial year to date 123.7
Profit before exceptional items March 2006 406.5
December 2005 171.7
Financial year to date 702.3
Exceptional items March 2006 (0.9)
December 2005 1.1
Financial year to date 0.6
Net profit March 2006 405.6
December 2005 172.8
Financial year to date 702.9
March 2006 408.0
Net profit excluding gains and losses on
financial
instruments and foreign debt and
exceptional December 2005 188.4
items Financial year to date 714.9
Capital expenditure March 2006 260.1
December 2005 222.6
Financial year to date 664.7
Planned for next six months to September 2006 653.4
Ghana
Tarkwa Damang
Operating Results
Ore milled/treated (000 tons) March 2006 5,671 1,375
December 2005 5,160 1,324
Financial year to date 16,106 4,026
Yield (grams per ton) March 2006 1.1 1.4
December 2005 1.0 1.4
Financial year to date 1.0 1.4
Gold produced (kilograms) March 2006 5,984 1,929
December 2005 5,183 1,871
Financial year to date 16,585 5,579
Gold sold (kilograms) March 2006 5,984 1,929
December 2005 5,183 1,871
Financial year to date 16,585 5,579
Gold price received (Rand
per kilogram) March 2006 110,478 109,850
December 2005 101,100 100,909
Financial year to date 101,381 101,093
Total cash costs (Rand per
kilogram) March 2006 57,269 67,859
December 2005 59,251 69,268
Financial year to date 58,125 71,751
Total production costs (Rand
per kilogram) March 2006 67,614 71,021
December 2005 69,844 72,368
Financial year to date 68,839 75,175
Operating costs (Rand per
ton) March 2006 61 90
December 2005 62 93
Financial year to date 61 92
Financial Results (Rand
million)
Revenue March 2006 661.1 211.9
December 2005 524.0 188.8
Financial year to date 1,681.4 564.0
Operating costs March 2006 344.1 123.4
December 2005 322.3 123.3
Financial year to date 984.6 370.8
Gold inventory change March 2006 (1.8) 4.0
December 2005 (18.1) 4 .2
Financial year to date (23.4) 21.6
Operating profit March 2006 318.8 84.5
December 2005 219.8 61.3
Financial year to date 720.2 171.6
Amortisation of mining assets March 2006 62.6 6.1
December 2005 58.5 5.8
Financial year to date 182.3 19.1
Net operating profit March 2006 256.2 78.4
December 2005 161.3 55.5
Financial year to date 537.9 152.5
Other income/(expense) March 2006 (1.2) 0 .6
December 2005 (4.1) (4.1)
Financial year to date 4.6 0.9
Profit before taxation March 2006 255.0 79.0
December 2005 157.2 51.4
Financial year to date 542.5 153.4
Mining and income taxation March 2006 12.8 21.9
December 2005 57.4 19.2
Financial year to date 119.1 51.5
- Normal taxation March 2006 19.6 16.0
December 2005 43.0 12.6
Financial year to date 101.4 33.8
- Deferred taxation March 2006 (6.8) 5 .9
December 2005 14.4 6.6
Financial year to date 17.7 17.7
Profit before exceptional
items March 2006 242.2 57.1
December 2005 99.8 32.2
Financial year to date 423.4 101.9
Exceptional items March 2006 - -
December 2005 - -
Financial year to date (1.3) -
Net profit March 2006 242.2 57.1
December 2005 99.8 32.2
Financial year to date 422.1 101.9
March 2006 242.5 57.8
Net profit excluding gains
and losses on financial
instruments and foreign debt
and exceptional December 2005 107.7 35.6
items Financial year to date 425.8 103.3
Capital expenditure March 2006 100.0 50.5
December 2005 68.9 34.9
Financial year to date 215.6 110.2
Planned for next six months to September 2006 194.7 98.0
Venezuela
Choco 10
Operating Results
Ore milled/treated (000 tons) March 2006 106
December 2005 -
Financial year to date 106
Yield (grams per ton) March 2006 1.6
December 2005 -
Financial year to date 1.6
Gold produced (kilograms) March 2006 169
December 2005 -
Financial year to date 169
Gold sold (kilograms) March 2006 169
December 2005 -
Financial year to date 169
Gold price received (Rand per kilogram) March 2006 109,467
December 2005 -
Financial year to date 109,467
Total cash costs (Rand per kilogram) March 2006 57,988
December 2005 -
Financial year to date 57,988
Total production costs (Rand per
kilogram) March 2006 59,172
December 2005 -
Financial year to date 59,172
Operating costs (Rand per ton) March 2006 141
December 2005 -
Financial year to date 141
Financial Results (Rand million)
Revenue March 2006 18.5
December 2005 -
Financial year to date 18.5
Operating costs March 2006 14.9
December 2005 -
Financial year to date 14.9
Gold inventory change March 2006 (5.4)
December 2005 -
Financial year to date (5.4)
Operating profit March 2006 9.0
December 2005 -
Financial year to date 9.0
Amortisation of mining assets March 2006 0.2
December 2005 -
Financial year to date 0.2
Net operating profit March 2006 8.8
December 2005 -
Financial year to date 8.8
Other income/(expense) March 2006 (1.2)
December 2005 -
Financial year to date (1.2)
Profit before taxation March 2006 7.6
December 2005 -
Financial year to date 7.6
Mining and income taxation March 2006 3.3
December 2005 -
Financial year to date 3.3
- Normal taxation March 2006 3.3
December 2005 -
Financial year to date 3.3
- Deferred taxation March 2006 -
December 2005 -
Financial year to date -
Profit before exceptional items March 2006 4.3
December 2005 -
Financial year to date 4.3
Exceptional items March 2006 -
December 2005 -
Financial year to date -
Net profit March 2006 4.3
December 2005 -
Financial year to date 4.3
March 2006 4.3
Net profit excluding gains and losses
on financial
instruments and foreign debt and
exceptional December 2005 -
items Financial year to date 4.3
Capital expenditure March 2006 6.5
December 2005 -
Financial year to date 6.5
Planned for next six months to September 2006 61.5
Australia #
St Ives Agnew
Operating Results
Ore milled/treated (000 tons) March 2006 1,654 347
December 2005 1,713 327
Financial year to date 5,008 999
Yield (grams per ton) March 2006 2.5 5.0
December 2005 2.3 5.2
Financial year to date 2.4 5.4
Gold produced (kilograms) March 2006 4,176 1,740
December 2005 3,915 1,715
Financial year to date 11,818 5,384
Gold sold (kilograms) March 2006 4,176 1,740
December 2005 3,915 1,715
Financial year to date 11,818 5,384
Gold price received (Rand
per kilogram) March 2006 110,632 110,977
December 2005 101,737 101,924
Financial year to date 101,828 101,430
Total cash costs (Rand per
kilogram) March 2006 66,020 55,402
December 2005 67,663 55,102
Financial year to date 66,619 52,767
Total production costs (Rand
per kilogram) March 2006 84,550
December 2005 86,021
Financial year to date 83,909
Operating costs (Rand per
ton) March 2006 177 269
December 2005 156 296
Financial year to date 161 290
Financial Results (Rand
million)
Revenue March 2006 462.0 193.1
December 2005 398.3 174.8
Financial year to date 1,203.4 546.1
Operating costs March 2006 292.7 93.4
December 2005 267.2 96.8
Financial year to date 804.2 289.3
Gold inventory change March 2006 (26.6) 3.4
December 2005 (6.2) (0.5)
Financial year to date (27.8) (1.1)
Operating profit March 2006 195.9 96.3
December 2005 137.3 78.5
Financial year to date 427.0 257.6
Amortisation of mining assets March 2006 136.0
December 2005 127.1
Financial year to date 382.0
Net operating profit March 2006 156.2
December 2005 88.7
Financial year to date 302.9
Other income/(expense) March 2006 6 .4
December 2005 (2.7)
Financial year to date 1.8
Profit before taxation March 2006 162.6
December 2005 86.0
Financial year to date 304.7
Mining and income taxation March 2006 59.7
December 2005 46.3
Financial year to date 132.0
- Normal taxation March 2006 16.4
December 2005 15.0
Financial year to date 43.7
- Deferred taxation March 2006 43.3
December 2005 31.3
Financial year to date 88.3
Profit before exceptional
items March 2006 102.9
December 2005 39.7
Financial year to date 172.7
Exceptional items March 2006 (0.9)
December 2005 1 .1
Financial year to date 1 .9
Net profit March 2006 102.0
December 2005 40.8
Financial year to date 174.6
March 2006 103.4
Net profit excluding gains
and losses on financial
instruments and foreign debt
and exceptional December 2005 45.1
items Financial year to date 181.5
Capital expenditure March 2006 79.4 23.7
December 2005 86.1 32.7
Financial year to date 246.3 86.1
Planned for next six months to September 2006 193.8 105.4
# 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.
Operating and financial results
Total Mine
Operations Total
United States Dollars
Operating Results
Ore milled/treated (000
tons) March 2006 12,738 3,585
December 2005 12,089 3,565
Financial year to date 36,715 10,470
Yield (ounces per ton) March 2006 0.086 0.180
December 2005 0.091 0.196
Financial year to date 0.089 0.190
Gold produced (000 ounces) March 2006 1,096.5 646.4
December 2005 1,105.4 697.6
Financial year to date 3,261.9 1,990.8
Gold sold (000 ounces) March 2006 1,096.5 646.4
December 2005 1,105.4 697.6
Financial year to date 3,261.9 1,990.8
Gold price received
(dollars per ounce) March 2006 555 551
December 2005 482 481
Financial year to date 490 488
Total cash costs (dollars
per ounce) March 2006 372 415
December 2005 341 366
Financial year to date 353 386
Total production costs
(dollars per ounce) March 2006 425 456
December 2005 390 403
Financial year to date 403 424
Operating costs (dollars
per ton) March 2006 33 77
December 2005 32 74
Financial year to date 32 76
Financial Results ($
million)
Revenue March 2006 602.2 353.4
December 2005 533.5 336.3
Financial year to date 1,599.3 972.2
Operating costs March 2006 416.5 276.2
December 2005 389.8 265.7
Financial year to date 1,183.2 798.2
Gold inventory change March 2006 (4.1) -
December 2005 (3.2) -
Financial year to date (5.6) -
Operating profit March 2006 189.8 77.3
December 2005 146.9 70.7
Financial year to date 421.7 174.0
Amortisation of mining
assets March 2006 57.9 24.8
December 2005 53.8 24.4
Financial year to date 162.0 70.8
Net operating profit March 2006 132.0 52.5
December 2005 93.1 46.3
Financial year to date 259.6 103.2
Other income/(expenses) March 2006 (4.0) (4.8)
December 2005 (6.6) (5.0)
Financial year to date (14.5) (15.7)
Profit before taxation March 2006 127.9 47.7
December 2005 86.5 41.3
Financial year to date 245.1 87.5
Mining and income taxation March 2006 32.4 16.5
December 2005 31.6 12.8
Financial year to date 71.7 23.8
- Normal taxation March 2006 18.5 9.5
December 2005 17.0 6.2
Financial year to date 46.3 17.8
- Deferred taxation March 2006 13.9 7.0
December 2005 14.6 6.5
Financial year to date 25.4 6.1
Profit before exceptional
items March 2006 95.6 31.2
December 2005 54.9 28.6
Financial year to date 173.4 63.7
Exceptional items March 2006 3.6 3.7
December 2005 0.3 0.1
Financial year to date 4.0 3.9
Net profit March 2006 99.1 34.8
December 2005 55.2 28.7
Financial year to date 177.4 67.5
March 2006 97.2 32.6
Net profit excluding
gains and losses on
financial
instruments and foreign
debt and exceptional December 2005 57.9 28.6
items Financial year to date 176.9 65.2
Capital expenditure
($ million) March 2006 68.3 26.6
December 2005 60.0 25.9
Financial year to date 176.7 72.9
Planned for next six
months to September 2006 177.5 73.5
South African Operations
United States Dollars Driefontein Kloof
Operating Results
Ore milled/treated (000
tons) March 2006 1,831 849
December 2005 1,684 950
Financial year to date 5,129 2,674
Yield (ounces per ton) March 2006 0.155 0.244
December 2005 0.172 0.266
Financial year to date 0.169 0.254
Gold produced (000 ounces) March 2006 284.5 207.1
December 2005 290.1 252.6
Financial year to date 864.4 678.0
Gold sold (000 ounces) March 2006 284.5 207.1
December 2005 290.1 252.6
Financial year to date 864.4 678.0
Gold price received
(dollars per ounce) March 2006 550 553
December 2005 481 481
Financial year to date 487 488
Total cash costs (dollars
per ounce) March 2006 376 467
December 2005 343 378
Financial year to date 350 419
Total production costs
(dollars per ounce) March 2006 413 516
December 2005 377 423
Financial year to date 385 465
Operating costs (dollars
per ton) March 2006 61 118
December 2005 61 105
Financial year to date 61 110
Financial Results ($
million)
Revenue March 2006 155.0 114.0
December 2005 139.8 121.7
Financial year to date 421.3 330.9
Operating costs March 2006 110.2 99.8
December 2005 103.5 99.4
Financial year to date 314.2 295.1
Gold inventory change March 2006 - -
December 2005 - -
Financial year to date - -
Operating profit March 2006 44.8 14.1
December 2005 36.4 22.2
Financial year to date 107.0 35.8
Amortisation of mining
assets March 2006 9.9 9.4
December 2005 9.4 10.8
Financial year to date 28.7 29.1
Net operating profit March 2006 35.0 4.7
December 2005 26.9 11.5
Financial year to date 78.3 6.7
Other income/(expenses) March 2006 (1.6) (1.4)
December 2005 (1.7) (1.3)
Financial year to date (5.0) (4.5)
Profit before taxation March 2006 33.4 3.4
December 2005 25.2 10.2
Financial year to date 73.3 2.2
Mining and income taxation March 2006 10.2 1.4
December 2005 7.1 3.1
Financial year to date 19.4 (1.1)
- Normal taxation March 2006 9 .5 -
December 2005 6 .2 -
Financial year to date 1 7 .8 -
- Deferred taxation March 2006 0.7 1.4
December 2005 0.9 3.1
Financial year to date 1 .7 (1.1)
Profit before exceptional
items March 2006 23.2 1.9
December 2005 18.1 7.1
Financial year to date 53.8 3.3
Exceptional items March 2006 0.1 2.6
December 2005 - -
Financial year to date 0.1 2.6
Net profit March 2006 23.3 4.5
December 2005 18.1 7.1
Financial year to date 54.0 5.9
March 2006 23.2 2.9
Net profit excluding gains
and losses on financial
instruments and foreign
debt and exceptional December 2005 18.1 7.1
items Financial year to date 54.0 4.3
Capital expenditure ($
million) March 2006 8.8 7.4
December 2005 9.3 8.2
Financial year to date 25.3 22.2
Planned for next six months to September 2006 24.3 25.2
United States Dollars Beatrix
Operating Results
Ore milled/treated (000 tons) March 2006 905
December 2005 931
Financial year to date 2,667
Yield (ounces per ton) March 2006 0.171
December 2005 0.166
Financial year to date 0.168
Gold produced (000 ounces) March 2006 154.9
December 2005 154.9
Financial year to date 448.4
Gold sold (000 ounces) March 2006 154.9
December 2005 154.9
Financial year to date 448.4
Gold price received (dollars per ounce) March 2006 551
December 2005 482
Financial year to date 491
Total cash costs (dollars per ounce) March 2006 416
December 2005 391
Financial year to date 406
Total production costs (dollars per
ounce) March 2006 455
December 2005 420
Financial year to date 438
Operating costs (dollars per ton) March 2006 74
December 2005 67
Financial year to date 71
Financial Results ($ million)
Revenue March 2006 84.5
December 2005 74.8
Financial year to date 220.1
Operating costs March 2006 66.2
December 2005 62.8
Financial year to date 188.9
Gold inventory change March 2006 -
December 2005 -
Financial year to date -
Operating profit March 2006 18.3
December 2005 12.1
Financial year to date 31.2
Amortisation of mining assets March 2006 5.5
December 2005 4.2
Financial year to date 13.0
Net operating profit March 2006 12.8
December 2005 7.9
Financial year to date 18.2
Other income/(expenses) March 2006 (1.8)
December 2005 (1.9)
Financial year to date (6.1)
Profit before taxation March 2006 10.9
December 2005 5.9
Financial year to date 12.1
Mining and income taxation March 2006 4.9
December 2005 2.6
Financial year to date 5.5
- Normal taxation March 2006 -
December 2005 -
Financial year to date -
- Deferred taxation March 2006 4.9
December 2005 2.6
Financial year to date 5 .5
Profit before exceptional items March 2006 6.0
December 2005 3.3
Financial year to date 6.5
Exceptional items March 2006 1.0
December 2005 0 .1
Financial year to date 1.1
Net profit March 2006 7.0
December 2005 3.4
Financial year to date 7.7
March 2006 6.4
Net profit excluding gains and losses on
financial
instruments and foreign debt and
exceptional December 2005 3.4
items Financial year to date 7.0
Capital expenditure ($ million) March 2006 10.3
December 2005 8.4
Financial year to date 25.5
Planned for next six months to September 2006 24.0
Average exchange rates are US$1 = R6.14 and US$1 = R6.53 for the March 2006 and
December 2005 quarters respectively.
Figures may not add as they are rounded independently.
Operating and financial results
International Operations
United States Dollars
Operating Results Total
Ore milled/treated (000 tons) March 2006 9,153
December 2005 8,524
Financial year to date 26,245
Yield (ounces per ton) March 2006 0.049
December 2005 0.048
Financial year to date 0.048
Gold produced (000 ounces) March 2006 450.0
December 2005 407.8
Financial year to date 1,271.1
Gold sold (000 ounces) March 2006 450.0
December 2005 407.8
Financial year to date 1,271.1
Gold price received (dollars per March 2006 560
ounce) December 2005 483
Financial year to date 493
Total cash costs (dollars per March 2006 310
ounce) December 2005 299
Financial year to date 301
Total production costs (dollars March 2006 381
per ounce) December 2005 369
Financial year to date 371
Operating costs (dollars per ton) March 2006 15
December 2005 15
Financial year to date 15
Financial Results ($ million)
Revenue March 2006 248.8
December 2005 197.2
Financial year to date 627.0
Operating costs March 2006 140.3
December 2005 124.2
Financial year to date 385.0
Gold inventory change March 2006 (4.1)
December 2005 (3.2)
Financial year to date (5.6)
Operating profit March 2006 112.6
December 2005 76.2
Financial year to date 247.6
Amortisation of mining assets March 2006 33.1
December 2005 29.4
Financial year to date 91.2
Net operating profit March 2006 79.5
December 2005 46.9
Financial year to date 156.4
Other income/(expenses) March 2006 0.8
December 2005 (1.7)
Financial year to date 1.1
Profit before taxation March 2006 80.3
December 2005 45.2
Financial year to date 157.6
Mining and income taxation March 2006 15.9
December 2005 18.8
Financial year to date 47.8
- Normal taxation March 2006 9.0
December 2005 10.8
Financial year to date 28.5
- Deferred taxation March 2006 6.9
December 2005 8.0
Financial year to date 19.3
Profit before exceptional items March 2006 64.4
December 2005 26.3
Financial year to date 109.8
Exceptional items March 2006 (0.1)
December 2005 0.2
Financial year to date 0.1
Net profit March 2006 64.3
December 2005 26.5
Financial year to date 109.9
Net profit excluding gains and losses March 2006 64.7
on financial instruments and foreign December 2005 29.3
debt, and exceptional items
Financial year to date 111.7
Capital expenditure March 2006 41.8
December 2005 34.1
Financial year to date 103.9
Planned for next six months to September 2006 104.0
United States Dollars Ghana
Tarkwa Damang
Operating Results
Ore milled/treated (000 tons) March 2006 5,671 1,375
December 2005 5,160 1,324
Financial year to date 16,106 4,026
Yield (ounces per ton) March 2006 0.034 0.045
December 2005 0.032 0.045
Financial year to date 0.033 0.045
Gold produced (000 ounces) March 2006 192.4 62.0
December 2005 166.6 60.2
Financial year to date 533.2 179.4
Gold sold (000 ounces) March 2006 192.4 62.0
December 2005 166.6 60.2
Financial year to date 533.2 179.4
Gold price received (dollars
per March 2006 560 556
ounce) December 2005 482 481
Financial year to date 493 491
Total cash costs (dollars per March 2006 290 344
ounce) December 2005 282 330
Financial year to date 282 349
Total production costs (dollars March 2006 343 360
per ounce) December 2005 333 345
Financial year to date 335 365
Operating costs (dollars per
ton) March 2006 10 15
December 2005 10 14
Financial year to date 10 14
Financial Results ($ million)
Revenue March 2006 106.2 34.1
December 2005 80.4 29.0
Financial year to date 262.7 88.1
Operating costs March 2006 55.6 20.0
December 2005 49.4 18.9
Financial year to date 153.8 57.9
Gold inventory change March 2006 (0.3) 0 .7
December 2005 (2.8) 0 .6
Financial year to date (3.7) 3 .4
Operating profit March 2006 51.0 13.5
December 2005 33.7 9.4
Financial year to date 112.5 26.8
Amortisation of mining assets March 2006 10.1 1.0
December 2005 9.0 0.9
Financial year to date 28.5 3.0
Net operating profit March 2006 40.8 12.5
December 2005 24.7 8.5
Financial year to date 84.0 23.8
Other income/(expenses) March 2006 (0.2) 0.1
December 2005 (0.6) (0.6)
Financial year to date 0.7 0.1
Profit before taxation March 2006 40.7 12.6
December 2005 24.1 7.9
Financial year to date 84.8 24.0
Mining and income taxation March 2006 2.3 3.5
December 2005 8.8 2.9
Financial year to date 18.6 8.0
- Normal taxation March 2006 3.3 2.6
December 2005 6.6 1.9
Financial year to date 15.8 5.3
- Deferred taxation March 2006 (1.0) 1.0
December 2005 2.2 1.0
Financial year to date 2.8 2.8
Profit before exceptional items March 2006 38.4 9.1
December 2005 15.3 4.9
Financial year to date 66.2 15.9
Exceptional items March 2006 - -
December 2005 - -
Financial year to date (0.2) -
Net profit March 2006 38.4 9.1
December 2005 15.3 4.9
Financial year to date 66.0 15.9
Net profit excluding gains and
losses March 2006 38.4 9.2
on financial instruments and
foreign December 2005 16.5 5.5
debt, and exceptional items
Financial year to date 66.5 16.1
Capital expenditure March 2006 16.0 8.1
December 2005 10.6 5.4
Financial year to date 33.7 17.2
Planned for next six months to September 2006 31.0 15.6
United States Dollars Venezuela
Choco 10
Operating Results
Ore milled/treated (000 tons) March 2006 106
December 2005 -
Financial year to date 106
Yield (ounces per ton) March 2006 0.051
December 2005 -
Financial year to date 0.051
Gold produced (000 ounces) March 2006 5.4
December 2005 -
Financial year to date 5.4
Gold sold (000 ounces) March 2006 5.4
December 2005 -
Financial year to date 5.4
Gold price received (dollars per March 2006 555
ounce) December 2005 -
Financial year to date 555
Total cash costs (dollars per March 2006 294
ounce) December 2005 -
Financial year to date 294
Total production costs (dollars March 2006 300
per ounce) December 2005 -
Financial year to date 300
Operating costs (dollars per ton) March 2006 23
December 2005 -
Financial year to date 23
Financial Results ($ million)
Revenue March 2006 3.0
December 2005 -
Financial year to date 3.0
Operating costs March 2006 2.4
December 2005 -
Financial year to date 2.4
Gold inventory change March 2006 (0.9)
December 2005 -
Financial year to date (0.9)
Operating profit March 2006 1.5
December 2005 -
Financial year to date 1.5
Amortisation of mining assets March 2006 -
December 2005 -
Financial year to date -
Net operating profit March 2006 1.4
December 2005 -
Financial year to date 1.4
Other income/(expenses) March 2006 (0.2)
December 2005 -
Financial year to date (0.2)
Profit before taxation March 2006 1.2
December 2005 -
Financial year to date 1.2
Mining and income taxation March 2006 0.5
December 2005 -
Financial year to date 0.5
- Normal taxation March 2006 0.5
December 2005 -
Financial year to date 0.5
- Deferred taxation March 2006 -
December 2005 -
Financial year to date -
Profit before exceptional items March 2006 0.7
December 2005 -
Financial year to date 0.7
Exceptional items March 2006 -
December 2005 -
Financial year to date -
Net profit March 2006 0.7
December 2005 -
Financial year to date 0.7
Net profit excluding gains and losses March 2006 0.7
on financial instruments and foreign December 2005 -
debt, and exceptional items
0.7
Financial year to da
Capital expenditure March 2006 1.0
December 2005 -
Financial year to date 1.0
Planned for next six months to September 2006 9.8
United States Dollars Australia #
St Ives Agnew
Operating Results
Ore milled/treated (000 tons) March 2006 1,654 347
December 2005 1,713 327
Financial year to date 5,008 999
Yield (ounces per ton) March 2006 0.081 0.161
December 2005 0.073 0.169
Financial year to date 0.076 0.173
Gold produced (000 ounces) March 2006 134.3 55.9
December 2005 125.9 55.1
Financial year to date 380.0 173.1
Gold sold (000 ounces) March 2006 134.3 55.9
December 2005 125.9 55.1
Financial year to date 380.0 173.1
Gold price received (dollars
per March 2006 560 562
ounce) December 2005 485 485
Financial year to date 495 493
Total cash costs (dollars per March 2006 334 281
ounce) December 2005 322 262
Financial year to date 324 256
Total production costs (dollars March 2006 428
per ounce) December 2005 410
Financial year to date 408
Operating costs (dollars per
ton) March 2006 29 44
December 2005 24 45
Financial year to date 25 45
Financial Results ($ million)
Revenue March 2006 74.3 31.1
December 2005 61.1 26.8
Financial year to date 188.0 85.1
Operating costs March 2006 47.2 15.1
December 2005 41.0 14.8
Financial year to date 125.7 45.1
Gold inventory change March 2006 (4.2) 0 .6
December 2005 (1.0) (0.1)
Financial year to date (4.3) (0.1)
Operating profit March 2006 31.3 15.4
December 2005 21.1 12.0
Financial year to date 66.7 40.1
Amortisation of mining assets March 2006 22.0
December 2005 19.5
Financial year to date 59.7
Net operating profit March 2006 24.7
December 2005 13.6
Financial year to date 47.1
Other income/(expenses) March 2006 1.1
December 2005 (0.4)
Financial year to date 0.5
Profit before taxation March 2006 25.8
December 2005 13.2
Financial year to date 47.6
Mining and income taxation March 2006 9.5
December 2005 7.1
Financial year to date 20.6
- Normal taxation March 2006 2.6
December 2005 2.3
Financial year to date 6.8
- Deferred taxation March 2006 6.9
December 2005 4.8
Financial year to date 13.8
Profit before exceptional items March 2006 16.3
December 2005 6.1
Financial year to date 27.0
Exceptional items March 2006 (0.1)
December 2005 0 .2
Financial year to date 0 .3
Net profit March 2006 16.1
December 2005 6.3
Financial year to date 27.3
Net profit excluding gains and
losses March 2006 16.4
on financial instruments and
foreign December 2005 6.9
debt, and exceptional items
28.4
Financial year to da
Capital expenditure March 2006 12.9 3.9
December 2005 13.2 5.0
Financial year to date 38.5 13.5
Planned for next six months to September 2006 30.9 16.8
Australian Dollars
United States Dollars Australia #
St Ives Agnew
Operating Results
Ore milled/treated (000 tons) March 2006 1,654 347
December 2005 1,713 327
Financial year to date 5,008 999
Yield (ounces per ton) March 2006 0.081 0.161
December 2005 0.073 0.169
Financial year to date 0.076 0.173
Gold produced (000 ounces) March 2006 134.3 55.9
December 2005 125.9 55.1
Financial year to date 380.0 173.1
Gold sold (000 ounces) March 2006 134.3 55.9
December 2005 125.9 55.1
Financial year to date 380.0 173.1
Gold price received (dollars
per March 2006 755 757
ounce) December 2005 648 650
Financial year to date 660 657
Total cash costs (dollars per March 2006 450 378
ounce) December 2005 431 351
Financial year to date 432 342
Total production costs (dollars March 2006 577
per ounce) December 2005 548
Financial year to date 544
Operating costs (dollars per
ton) March 2006 39 59
December 2005 32 61
Financial year to date 33 60
Financial Results ($ million)
Revenue March 2006 100.0 42.0
December 2005 81.5 35.8
Financial year to date 250.7 113.8
Operating costs March 2006 63.6 20.5
December 2005 54.7 19.8
Financial year to date 167.5 60.3
Gold inventory change March 2006 (5.5) 0 .7
December 2005 (1.3) (0.1)
Financial year to date (5.8) (0.2)
Operating profit March 2006 42.0 20.9
December 2005 28.1 16.1
Financial year to date 89.0 53.7
Amortisation of mining assets March 2006 29.6
December 2005 26.0
Financial year to date 79.6
Net operating profit March 2006 33.3
December 2005 18.1
Financial year to date 63.1
Other income/(expenses) March 2006 1.3
December 2005 (0.6)
Financial year to date 0.4
Profit before taxation March 2006 34.6
December 2005 17.6
Financial year to date 63.5
Mining and income taxation March 2006 12.8
December 2005 9.5
Financial year to date 27.5
- Normal taxation March 2006 3.6
December 2005 3.1
Financial year to date 9.1
- Deferred taxation March 2006 9.2
December 2005 6.4
Financial year to date 18.4
Profit before exceptional items March 2006 21.8
December 2005 8.1
Financial year to date 36.0
Exceptional items March 2006 (0.2)
December 2005 0 .2
Financial year to date 0 .4
Net profit March 2006 21.6
December 2005 8.3
Financial year to date 36.4
Net profit excluding gains and
losses March 2006 21.9
on financial instruments and
foreign December 2005 9.2
debt, and exceptional items
Financial year to date 37.8
Capital expenditure March 2006 17.4 5.3
December 2005 17.6 6.7
Financial year to date 51.3 17.9
Planned for next six months to September 2006 43.9 23.9
Average exchange rates are US$1 = R6.14 and US$1 = R6.53 for the March 2006 and
December 2005 quarters respectively. The Australian dollar exchange rates are
AUS$1 = R4.56 and AUS$1 = R4.88 for the March 2006 and December 2005 quarters
respectively.
# As a significant portion of the acquisition price was allocated to tenements
of St Ives and Agnew on endowment ounces and also as these two Australian
operations are entitled to transfer and then off-set tax losses from one
company to another, it is not meaningful to split the income statement below
operating profit.
Figures may not add as they are rounded independently.
Underground and surface
South African Rand and Metric Units
Operating Results Total Mine
Operations
Ore milled /
treated (000 ton)
- underground March 2006 3,134
December 2005 3,381
Financial year to date 9,627
- surface March 2006 9,604
December 2005 8,708
Financial year to date 27,088
- total March 2006 12,738
December 2005 12,089
Financial year to date 36,715
Yield (grams
per ton)
- underground March 2006 7.0
December 2005 7.1
Financial year to date 7.1
- surface March 2006 1.3
December 2005 1.2
Financial year to date 1.2
- combined March 2006 2.7
December 2005 2.8
Financial year to date 2.8
Gold produced
(kilograms)
- underground March 2006 21,798
December 2005 23,880
Financial year to date 67,939
- surface March 2006 12,306
December 2005 10,501
Financial year to date 33,518
- total March 2006 34,104
December 2005 34,381
Financial year to date 101,457
Operating costs
(Rand per ton)
- underground March 2006 581
December 2005 553
Financial year to date 570
- surface March 2006 78
December 2005 77
Financial year to date 77
- total March 2006 202
December 2005 210
Financial year to date 206
South African Operations
Operating Results
Total Driefontein
Ore milled /
treated (000 ton)
- underground March 2006 2,563 925
December 2005 2,840 1,029
Financial year to date 7,990 2,943
- surface March 2006 1,022 906
December 2005 725 655
Financial year to date 2,480 2,186
- total March 2006 3,585 1,831
December 2005 3,565 1,684
Financial year to date 10,470 5,129
Yield (grams
per ton)
- underground March 2006 7.2 7.9
December 2005 7.3 7.9
Financial year to date 7.3 8.0
- surface March 2006 1.6 1.7
December 2005 1.5 1.4
Financial year to date 1.6 1.6
- combined March 2006 5.6 4.8
December 2005 6.1 5.4
Financial year to date 5.9 5.2
Gold produced
(kilograms)
- underground March 2006 18,449 7,302
December 2005 20,614 8,090
Financial year to date 58,072 23,397
- surface March 2006 1,657 1,547
December 2005 1,083 932
Financial year to date 3,850 3,489
- total March 2006 20,106 8,849
December 2005 21,697 9,022
Financial year to date 61,922 26,886
Operating costs
(Rand per ton)
- underground March 2006 639 674
December 2005 596 623
Financial year to date 620 638
- surface March 2006 65 63
December 2005 56 51
Financial year to date 63 61
- total March 2006 476 372
December 2005 486 401
Financial year to date 488 392
Operating Results
Kloof Beatrix
Ore milled /
treated (000 ton)
- underground March 2006 733 905
December 2005 880 931
Financial year to date 2,380 2,667
- surface March 2006 116 -
December 2005 70 -
Financial year to date 294 -
- total March 2006 849 905
December 2005 950 931
Financial year to date 2,674 2,667
Yield (grams
per ton)
- underground March 2006 8.6 5.3
December 2005 8.8 5.2
Financial year to date 8.7 5.2
- surface March 2006 0.9 -
December 2005 *2.2 -
Financial year to date 1.2 -
- combined March 2006 7.6 5.3
December 2005 8.3 5.2
Financial year to date 7.9 5.2
Gold produced
(kilograms)
- underground March 2006 6,330 4,817
December 2005 7,706 4,818
Financial year to date 20,728 13,947
- surface March 2006 110 -
December 2005 151 -
Financial year to date 361 -
- total March 2006 6,440 4,817
December 2005 7,857 4,818
Financial year to date 21,089 13,947
Operating costs
(Rand per ton)
- underground March 2006 827 452
December 2005 729 440
Financial year to date 783 453
- surface March 2006 79 -
December 2005 103 -
Financial year to date 81 -
- total March 2006 725 452
December 2005 682 440
Financial year to date 706 453
International Operations
Operating Results
Ore milled /
treated (000 ton) Total
- underground March 2006 571
December 2005 541
Financial year to date 1,637
- surface March 2006 8,582
December 2005 7,983
Financial year to date 24,608
- total March 2006 9,153
December 2005 8,524
Financial year to date 26,245
Yield (grams
per ton)
- underground March 2006 5.9
December 2005 6.0
Financial year to date 6.0
- surface March 2006 1.2
December 2005 1.2
Financial year to date 1.2
- combined March 2006 1.5
December 2005 1.5
Financial year to date 1.5
Gold produced
(kilograms)
- underground March 2006 3,349
December 2005 3,266
Financial year to date 9,867
- surface March 2006 10,649
December 2005 9,418
Financial year to date 29,668
- total March 2006 13,998
December 2005 12,684
Financial year to date 39,535
Operating costs
(Rand per ton)
- underground March 2006 321
December 2005 328
Financial year to date 325
- surface March 2006 80
December 2005 79
Financial year to date 78
- total March 2006 95
December 2005 95
Financial year to date 94
Operating Results Ghana
Tarkwa Damang
Ore milled /
treated (000 ton)
- underground March 2006 - -
December 2005 - -
Financial year to date - -
- surface March 2006 5,671 1,375
December 2005 5,160 1,324
Financial year to date 16,106 4,026
- total March 2006 5,671 1,375
December 2005 5,160 1,324
Financial year to date 16,106 4,026
Yield (grams
per ton)
- underground March 2006 - -
December 2005 - -
Financial year to date - -
- surface March 2006 1.1 1.4
December 2005 1.0 1.4
Financial year to date 1.0 1.4
- combined March 2006 1.1 1.4
December 2005 1.0 1.4
Financial year to date 1.0 1.4
Gold produced
(kilograms)
- underground March 2006 - -
December 2005 - -
Financial year to date - -
- surface March 2006 5,984 1,929
December 2005 5,183 1,871
Financial year to date 16,585 5,579
- total March 2006 5,984 1,929
December 2005 5,183 1,871
Financial year to date 16,585 5,579
Operating costs
(Rand per ton)
- underground March 2006 - -
December 2005 - -
Financial year to date - -
- surface March 2006 61 90
December 2005 62 93
Financial year to date 61 92
- total March 2006 61 90
December 2005 62 93
Financial year to date 61 92
Operating Results Venezuela
Choco 10
Ore milled /
treated (000 ton)
- underground March 2006 -
December 2005 -
Financial year to date -
- surface March 2006 106
December 2005 -
Financial year to date 106
- total March 2006 106
December 2005 -
Financial year to date 106
Yield (grams
per ton)
- underground March 2006 -
December 2005 -
Financial year to date -
- surface March 2006 1.6
December 2005 -
Financial year to date 1.6
- combined March 2006 1.6
December 2005 -
Financial year to date 1.6
Gold produced
(kilograms)
- underground March 2006 -
December 2005 -
Financial year to date -
- surface March 2006 169
December 2005 -
Financial year to date 169
- total March 2006 169
December 2005 -
Financial year to date 169
Operating costs
(Rand per ton)
- underground March 2006 -
December 2005 -
Financial year to date -
- surface March 2006 141
December 2005 -
Financial year to date 141
- total March 2006 141
December 2005 -
Financial year to date 141
Operating Results Australia
St Ives Agnew
Ore milled /
treated (000 ton)
- underground March 2006 455 116
December 2005 430 111
Financial year to date 1,294 343
- surface March 2006 1,199 231
December 2005 1,283 216
Financial year to date 3,714 656
- total March 2006 1,654 347
December 2005 1,713 327
Financial year to date 5,008 999
Yield (grams
per ton)
- underground March 2006 4.4 11.5
December 2005 4.7 11.3
Financial year to date 4.5 11.6
- surface March 2006 1.8 1.7
December 2005 1.5 2.1
Financial year to date 1.6 2.1
- combined March 2006 2.5 5.0
December 2005 2.3 5.2
Financial year to date 2.4 5.4
Gold produced
(kilograms)
- underground March 2006 2,011 1,338
December 2005 2,013 1,253
Financial year to date 5,878 3,989
- surface March 2006 2,165 402
December 2005 1,902 462
Financial year to date 5,940 1,395
- total March 2006 4,176 1,740
December 2005 3,915 1,715
Financial year to date 11,818 5,384
Operating costs
(Rand per ton)
- underground March 2006 307 377
December 2005 312 386
Financial year to date 310 383
- surface March 2006 128 215
December 2005 104 250
Financial year to date 109 241
- total March 2006 177 269
December 2005 156 296
Financial year to date 161 290
* Abnormally high yield due to the inclusion of significant clean-up material
from No. 3 plant.
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 2006
quarter
Carbon Main VCR
Reef Leader
Advanced (m) 4,266 599 1,276
Advanced on reef (m) 397 197 65
Sampled (m) 399 255 60
Channel width (cm) 103 33 34
Average value - (g/t) 21.1 16.9 0.9
- (cm.g/t) 2,180 562 (1)29
Driefontein December 2005
quarter
Carbon Main VCR
Reef Leader
Advanced (m) 5,075 661 1,523
Advanced on reef (m) 747 243 175
Sampled (m) 708 171 129
Channel width (cm) 105 21 97
Average value - (g/t) 13.1 28.9 19.5
- (cm.g/t) 1,373 595 1,894
Driefontein Year to date
F2006
Carbon Main VCR
Reef Leader
Advanced (m) 14,384 1,908 4,030
Advanced on reef (m) 1,860 667 396
Sampled (m) 1,830 558 267
Channel width (cm) 106 27 83
Average value - (g/t) 14.7 22.9 31.4
- (cm.g/t) 1,556 611 2,603
Kloof March 2006
quarter
Reef Kloof Main VCR
Advanced (m) 284 1,446 5,994
Advanced on reef (m) 201 312 1,284
Sampled (m) 174 429 1,167
Channel width (cm) 107 129 76
Average value - (g/t) 11.1 7.7 31.7
- (cm.g/t) 1,185 993 2,401
Kloof December 2005
quarter
Reef Kloof Main VCR
Advanced (m) 200 1,434 6,470
Advanced on reef (m) 105 446 1,469
Sampled (m) 60 445 1,406
Channel width (cm) 127 93 102
Average value - (g/t) 5.9 13.1 21.6
- (cm.g/t) 746 1,225 2,191
Kloof Year to date
F2006
Reef Kloof Main VCR
Advanced (m) 674 4,037 17,521
Advanced on reef (m) 403 918 3,969
Sampled (m) 339 1,022 3,813
Channel width (cm) 122 109 92
Average value - (g/t) 7.8 9.9 23.2
- (cm.g/t) 957 1,081 2,130
Beatrix March 2006
quarter
Reef Beatrix Kalkoenkrans
Advanced (m) 7,255 1,966
Advanced on reef (m) 1,249 300
Sampled (m) 1,164 291
Channel width (cm) 68 131
Average value - (g/t) 13.7 10.1
- (cm.g/t) 932 1,324
Beatrix December 2005
quarter
Reef Beatrix Kalkoenkrans
Advanced (m) 6,832 2,240
Advanced on reef (m) 1,630 460
Sampled (m) 1,554 432
Channel width (cm) 90 159
Average value - (g/t) 12.8 7.6
- (cm.g/t) 1,148 1,215
Beatrix Year to date
F2006
Reef Beatrix Kalkoenkrans
Advanced (m) 19,994 5,829
Advanced on reef (m) 4,585 1,016
Sampled (m) 4,281 978
Channel width (cm) 79 149
Average value - (g/t) 14.0 9.5
- (cm.g/t) 1,101 1,417
(1) VCR values were negatively affected by the temporary stopping of
development in the shaft pillar and raises currently traversing poor ground.
Administration and corporate information
Corporate Secretary
CAIN FARREL
Telephone: (+27)(11) 644 2525
Facsimile: (+27)(11) 484 0626
e-mail: cain.farrel@goldfields.co.za
Registered offices
JOHANNESBURG
Gold Fields Limited
24 St Andrews Road
Parktown
Johannesburg
2193
Postnet Suite 252
Private Bag x 30500
Houghton 2041
Tel: (+27)(11) 644-2400
Fax: (+27)(11) 484-0626
LONDON
St James "s Corporate Services Limited
6 St James "s Place
London SW1A 1NP
United Kingdom
Telephone:(+44)(20) 7499 3916
Facsimile: (+44)(20) 7491 1989
American Depository
Receipts Transfer Agent
Bank of New York
Shareholder Relations
P O Box 11258
New York, NY20286 -1258
US toll-free telephone: (1)(888) 269 2377
e-mail: shareowner-svcs@mail.bony.com
Gold Fields Limited
Incorporated in the Republic of South Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN - ZAE 000018123
Directors
A J Wright (Chairman)
I D Cockerill * (Chief Executive Officer)
N J Holland * (Chief Financial Officer)
K Ansah#
J M McMahon *
G J Gerwel
D M J Ncube
A Grigorian
R L Pennant-Rea *
J G Hopwood
P J Ryan
T M G Sexwale
C I von Christierson
* British
# Ghanaian
Russian
INVESTOR RELATIONS
South Africa
WILLIE JACOBSZ
Telephone: (+27)(11) 644 2460
Facsimile: (+27)(11) 484 0639
e-mail: williej@goldfields.co.za
NERINA BODASING
Telephone: (+27)(11) 644 2630
Facsimile: (+27)(11) 484 0639
e-mail: nerina.bodasing@goldfields.co.za
North America
CHERYL A MARTIN
Telephone: (+1)(303) 796 8683
Facsimile: (+1)(303) 796 8293
e-mail: camartin@gfexpl.com
TRANSFER SECRETARIES
South Africa
Computershare Investor Services 2004
(Proprietary) Limited
Ground Floor
70 Marshall Street
Johannesburg, 2001
P O Box 61051
Marshalltown, 2107
Telephone: (+27)(11) 370 5000
Facsimile: (+27)(11) 370 5271
United Kingdom
Capita Registrars
Bourne House
34 Beckenham Road
Beckenham
Kent BR3 4TU
England
Telephone: (+44)(20) 8639 2000
Facsimile: (+44)(20) 8658 3430
WEBSITE
http://www.goldfields.co.za
http://www.gold-fields.com
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; decreases in the
market price of gold; hazards associated with underground and surface gold
mining; labour disruptions; changes in government regulations, particularly
environmental regulations; changes in exchange rates; currency devaluations;
inflation and other macro-economic factors; 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: 02/05/2006 08:02:02 AM Produced by the JSE SENS Department
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