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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
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