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GFI
GOGOF
Gold Fields Limited - Quarter and Year ended 30 June 2006
Gold Fields Limited
Incorporated in the Republic of South Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN: ZAE000018123
Q4 F2006
Quarter and Year ended 30 June 2006
News Release Q4 F2006 and Year F2006 Results
-Reviewed preliminary results-
Operating profit up 40 per cent
with a final dividend of 110 SA cents per share declared
JOHANNESBURG. 3 August 2006 - Gold Fields Limited (NYSE & JSE: GFI) today
announced June 2006 quarter net earnings of R604 million compared with R483
million in the March 2006 quarter and negative R27 million for the June quarter
of 2005. In US dollar terms net earnings for the June 2006 quarter were US$95
million compared with US$76 million in the March 2006 quarter and negative US$5
million for the June quarter of 2005. Net earnings excluding gains and losses
on financial instruments and foreign debt net of cash and exceptional items
were R536 million (US$84 million) for the June 2006 quarter compared with R376
million (US$60 million) for the March 2006 quarter, an increase of 43 per cent.
June 2006 quarter highlights:
Attributable gold production in line with the March quarter
at 1,018,000 ounces;
Average gold price up 18 per cent to R128,974 per kilogram and up 13 per cent
in US dollar terms to $628 per ounce;
Operating margin increased from 32 per cent to 38 per cent;
Significant improvement in performance from the Kloof mine;
Purchase of 21.3 million shares in Western Areas Limited increases
Gold Fields stake to 18.9 per cent.
Financial year highlights:
Attributable gold produced 4.1 million ounces for the year;
Cost saving initiatives on track and delivering results;
Earnings increase eleven fold from R128 million to R1,389 million and
from US$21 million to US$217 million;
Acquisition of Cerro Corona and Bolivar completed;
Construction begins at Cerro Corona;
Norilsk Nickel disposes of its entire 20 per cent stake in Gold Fields
during the year.
Final dividend number 65 of 11 SA cents per share, giving a total dividend
of 150 SA cents per share for the year.
Ian Cockerill, Chief Executive Officer of Gold Fields said:
"Gold Fields delivered a solid set of results broadly in line with guidance
provided at the end of the previous quarter. We are particularly pleased that
we have been able, through effective cost control, to see a significant part of
the higher gold price flow through to the bottom line. Operating profit this
quarter increased 40 per cent with the Group margin increasing from 32 per cent
to 38 per cent and the South African margin increasing from 22 per cent to 34
per cent.
The South African operations, led by a resurgent Kloof, delivered the
anticipated improvements, while the international operations declined from an
unsustainably high base in the March quarter. Total cash costs were well
controlled despite the high inflationary environment around the globe.
During the September quarter the focus will remain on the mining of quality
volumes and tight cost control to mitigate the strong inflationary pressures
and to ensure that shareholders reap the benefit of the stronger gold price."
Stock data
Number of shares in issue
- at end June 2006 494,824,723
- average for the quarter 494,628,373
Free Float 100%
ADR Ratio 1:1
Bloomberg / Reuters GFISJ / GFLJ.J
JSE Limited - (GFI)
Range - Quarter ZAR110.81 - ZAR162.00
Average Volume - Quarter 2,711,795 shares / day
NYSE - (GFI)
Range - Quarter US$16.17 - US$26.93
Average Volume - Quarter 2,355,124 shares / day
the complete gold company
Salient features
South African Rand
Year end Quarter
Adjusted Adjusted
June June June March June
2005 2006 2005 2006 2006
Gold produced* 131,284 126,712 33,523 31,809 31,669 kg
Total cash costs 66,041 73,746 67,773 73,378 77,187 R/kg
Tons milled 47,880 49,366 12,225 12,738 12,651 000
Revenue 84,218 107,918 88,076 109,500 128,974 R/kg
Operating costs 198 209 202 202 216 R/ton
Operating profit 2,286 4,360 656 1,187 1,660 Rm
Operating margin 19 30 21 32 38 %
128 1,389 (27) 483 604 Rm
Net earnings
26 281 (5) 98 122 SA c.p.s.
239 1,337 122 446 594 Rm
Headline earnings
49 270 25 90 120 SA c.p.s.
Net earnings excluding
gains and losses on 400 1,230 217 376 536 Rm
financial instruments
and foreign debt net of
cash and exceptional
items 81 249 44 76 108 SA c.p.s.
United States Dollars
Quarter Year end
Adjusted Adjusted
June March June June June
2006 2006 2005 2006 2005
Gold produced* (000) oz 1,018 1,023 1,078 4,074 4,219
Total cash costs $/oz 376 372 330 358 331
Tons milled 000 12,651 12,738 12,225 49,366 47,880
Revenue $/oz 628 555 429 524 422
Operating costs $/ton 34 33 32 33 32
Operating profit $m 260 190 103 681 368
Operating margin % 38 32 21 30 19
$m 95 76 (5) 217 21
Net earnings
US c.p.s. 19 16 (1) 44 4
$m 93 71 16 209 39
Headline earnings
US c.p.s. 18 15 4 42 8
Net earnings excluding
gains and losses on $m 84 60 28 192 64
financial instruments
and foreign debt net of
cash and exceptional
items US c.p.s. 17 12 6 39 13
*Attributable - All companies wholly owned except for Ghana (71.1%) and Choco
10 (95%).
Note - adjusted figures are due to the adoption of IFRS 2, Share Based Payments.
Health and safety
We regret to report fifteen fatal injuries during the June quarter with nine of
these accidents as a result of falls of ground and seismicity. All of the
fatalities occurred at the South African operations. The international
operations were fatal injury free this quarter. The fatal injury frequency rate
was 0.44 per million man hours worked, compared with the previous quarter"s
figure of 0.19. The lost day injury frequency rate regressed marginally from
11.68 to 11.75, the serious injury frequency rate regressed from 5.6 to 6.6 and
the days lost frequency rate regressed from 335 to 378 per million man hours
worked.
Kloof and Beatrix"s rates deteriorated and were unacceptably high. Kloof
experienced above average seismicity during the quarter. A renewed focus on
behavioural safety has been introduced throughout the South African operations.
This has resulted in renewed behavioural intervention within Khuseleka at
Beatrix, Dumela at Driefontein and Eyethu at Kloof. Management is continuing to
actively review all safety initiatives and is seeking improvements that will
meet the Ontario safety standards on all of our mines.
Financial review
Quarter ended 30 June compared with quarter ended 31 March 2006
Revenue
Attributable gold production decreased from 1,023,000 ounces in the March 2006
quarter to 1,018,000 ounces in the June quarter. Production at the South
African operations increased 4 per cent to 669,000 ounces, compared with
646,000 ounces in the March quarter. Attributable production at the
international operations decreased 7 per cent from last quarter"s high of
377,000 ounces to 349,000 ounces this quarter.
At the South African operations, Driefontein"s gold production was in line with
that achieved in the March quarter. An increase in underground grades offset
the lower volumes and grades from surface material, which included gold
clean-up from the number one gold plant in the March quarter but not in the
current quarter. At Kloof, gold production increased significantly in line with
the increase in shifts worked this quarter compared with the March quarter,
which was impacted by the Christmas break and a slow start-up thereafter as a
result of a labour dispute. Production at Beatrix decreased by 5 per cent
quarter on quarter as a consequence of lower production from the higher grade
west section.
All the international operations reflected a decrease in production, except
Choco 10, which performed in line with expectations delivering 20,000 ounces
for the quarter. At Tarkwa, gold production decreased by 16,000 ounces due to
lower volumes milled as a result of a shortage of competent ore delivered to
the mill, thereby reducing throughput. Despite this, the Tarkwa plant continues
to operate above design capacity. As forecast, Damang"s production decreased
by 6,000 ounces when compared with the March quarter due to less of
the higher grade ores from Amoanda open pit and B4 stockpiles as they near
depletion. St Ives also saw a significant decrease in production due to a
major mill maintenance shutdown for 5 days as well as lower grades from surface
and underground. At Agnew, the decrease in production was mainly due to
forecasted lower grades from Kim underground.
The average quarterly US dollar gold price increased from US$555 per ounce in
the March quarter to US$628 per ounce this quarter, a 13 per cent increase. The
average rand/US dollar exchange rate weakened by 4 per cent quarter on quarter,
averaging R6.39, compared with R6.14 in the March quarter. As a result of these
two factors the rand gold price increased from R109,500 per kilogram to
R128,974 per kilogram, an 18 per cent improvement.
The increase in the rand gold price achieved resulted in revenue increasing
from R3,734 million (US$602 million) to R4,369 million (US$683 million) this
quarter.
Operating costs
Operating costs for the June 2006 quarter, at R2,732 million (US$427 million),
increased 6 per cent or R159 million (US$10 million) when compared with the
March quarter"s R2,573 million (US$417 million). The increase at the South
African operations of R71 million, or 4 per cent, from R1,705 million (US$276
million) to R1,776 million (US$278 million) contributed to approximately half
of this increase which was mainly at Kloof in line with the increase in volumes
of stoping and development. Beatrix was slightly below last quarter"s costs,
while Driefontein"s costs increased 3 per cent mainly due to an increase in
area mined.
Costs at the international operations, including gold-in- process movements,
amounted to R933 million (US$146 million), 11 per cent more than the R842
million (US$136 million) incurred in the March quarter. More than 4 per cent of
this increase was due to the weakening of the rand and 4 per cent was due to
the inclusion of Choco 10 for a full quarter, compared with only one month"s
cost included in the March quarter. At Tarkwa, the increase of 2 per cent in
dollar terms was due to the increase in fuel, explosives, reagents and the
expected increase in the cost of mining fleet maintenance. At St Ives,
operating costs increased by 10 per cent or A$6 million (R41 million) due
to additional exploration costs written off, additional price participation
royalties linked to the high gold price and the cost of maintenance related to
five day mill shutdown.
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 R1,660 million (US$260
million). This is 40 per cent higher than the R1,187 million (US$190 million)
achieved in the March quarter. The Group margin increased from 32 per cent to
38 per cent. The margin at the South African operations increased from 22 per
cent to 34 per cent, while the margin at the international operations was
similar at 45 per cent quarter on quarter.
Amortisation
Amortisation increased from R384 million (US$62 million) in the March quarter
to R423 million (US$66 million) in the June quarter. This increase was mainly
due to the inclusion of Choco 10 for a full quarter, which amounted to R13
million (US$2 million) and the amortisation of the Bolivar fair value
adjustment of R6 million (US$1 million). Added to this is the effect of the
change in reserves calculated at 31 December, and released in May. Amortisation
calculations on these updated reserves were included as from 1 April 2006.
Please refer to the section on Corporate for more detail on the reserve
statement.
Other
Net interest paid decreased from R7 million (US$1 million) in the March quarter
to R5 million (US$1 million) for the June quarter and reflects the interest
cost on the Mvela loan of R32 million (US$5 million) and interest on offshore
debt raised to partly finance the acquisition of Bolivar of R14 million (US$2
million), partially offset by interest received.
The gain on foreign debt, net of cash, of R40 million (US$7 million), compares
with a gain of R80 million (US$13 million) in the March quarter. This quarter"s
gain consists largely of a currency conversion adjustment arising from a change
in the functional currency from US dollars to rands of one of the Group"s
offshore subsidiary companies in terms of IAS 21 (revised) - Effects of changes
in foreign exchange rates.
The March quarter"s gain comprises a R65 million (US$11 million) currency
translation gain on foreign 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 gain on financial instruments of R24 million (US$4 million) compares with a
loss of R20 million (US$3 million) in the March quarter. This quarter"s gain
comprises mainly marked to market gains on a foreign exchange position.
More details on these financial instruments are given on page 15 of this report.
Exploration expenditure
Exploration expenditure increased from R34 million (US$6 million) in the March
quarter to R94 million (US$15 million) in the June quarter. Of this increase
some US$6 million was spent on the Essakane project in Burkina Faso as this
project continues with its pre-feasibility study. Please refer to the
Exploration and Corporate Development section for more detail.
Taxation
Taxation for the quarter amounted to R469 million (US$73 million) compared with
R225 million (US$36 million) in the March quarter. The tax provision includes
normal and deferred taxation on all operations together with government
royalties at the international operations. The increase in tax is due to a R61
million (US$10 million) adjustment last quarter arising from a reduction in
income tax rates in Ghana from 28 per cent to 25 per cent. This, together with
the 40 per cent increase in operating profits and a significant increase in
non-deductible exploration expenditure has brought about the significant
increase in the tax charge.
Earnings
Net profit attributable to ordinary shareholders amounted to R604 million
(US$95 million) or 122 SA cents per share (US$0.19 per share), compared with
R483 million (US$76 million) or 98 SA cents per share (US$0.16 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 R594 million (US$93 million) or
120 SA cents per share (US$0.18 per share), compared with earnings of R446
million (US$71 million) or 90 SA cents per share (US$0.15 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 R536 million
(US$84 million) or 108 SA cents per share (US$0.17 per share), compared with
earnings of R376 million (US$60 million) or 76 SA cents per share (US$0.12 per
share) reported last quarter.
Cash flow
Cash flow from operating activities for the quarter was R1,529 million (US$235
million), which is 37 per cent higher than the operating cash flow generated in
the March quarter of R1,116 million (US$176 million). This increase in cash
flow reflects the increase in operating profit.
Capital expenditure amounted to R663 million (US$104 million) compared with
R473 million (US$76 million) in the March quarter. A significant portion of
this increase relates to amounts expended on the construction of the Cerro
Corona mine in Peru with R124 million (US$19 million) spent in the
current quarter compared with R83 million (US$14 million) in
the March quarter. Expenditure at the South African
operations increased from R164 million (US$27 million) to
R228 million (US$35 million) in the June quarter. Included is
the 1 and 5 shaft project at Driefontein of R36 million, 4 shaft
at Kloof of R19 million, Kloof"s 1 shaft pillar extraction project
of R12 million and 3 shaft at Beatrix of R28 million.
At the Ghanaian operations, capital expenditure amounted to R138 million (US$21
million) with R37 million (US$6 million) spent on the Damang main pit cutback.
This compares with total expenditure of R151 million (US$24 million) in the
March quarter. The Australian operations incurred capital expenditure of R122
million (A$26 million), compared with R103 million (A$23 million) in the March
quarter. Expenditure at St Ives of R90 million (A$19 million) included
development costs at Argo and Leviathan underground and Thunderer open pit. At
Agnew, the majority of the R32 million (A$7 million) expenditure was spent on
development at Kim South and Main Lode. At Choco 10 capital expenditure
amounted to R27 million (US$4 million), the majority of this on upgrading the
metallurgical plant and exploration.
Purchase of investments amounted to R851 million (US$133 million) the majority
of which was the purchase of 21.3 million shares in Western Areas. Please
refer to the corporate section for more detail.
Net cash outflow for the quarter was R61 million (US$10 million). After
accounting for a translation adjustment of R177 million (the translation
adjustment in US dollar was negative $11 million), the cash balance at the end
of June was R1,618 million (US$218 million). The cash balance at the end of
March was R1,502 million (US$239 million).
Detailed and operational review
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. The
objective is to increase mining volumes whilst maintaining yields as close as
possible to life of mine reserve yields.
Year
F2004 F2005 F2006*
Driefontein:
Life of mine head grade as per published
declarations 8.7 8.1 8.0
Life of mine head grade adjusted for estimated
metallurgical recoveries 8.4 7.8 7.8
Driefontein (underground yields achieved) 8.1 8.3 8.1
Kloof:
Life of mine head grade as per published
declarations 9.8 10.5 10.0
Life of mine head grade adjusted for estimated
metallurgical recoveries** 9.5 10.2 9.7
Kloof (underground yields achieved) 9.0 9.1 8.7
Beatrix:
Life of mine head grade as per published
declarations 5.1 5.5 5.5
Life of mine head grade adjusted for estimated
metallurgical recoveries 4.9 5.3 5.3
Beatrix (underground yields achieved) 4.6 5.0 5.2
* F2006 based on reserve statement at 31 December 2005.
** Kloof"s life of mine head grade as adjusted for estimated metallurgical
recoveries is higher than that currently achieved due to the high grade
main shaft pillar, mining of which only commences in the F2007 year.
Project Beyond and Project 100+
Prevailing industry trends have created significant challenges for procurement,
making the need for professionalism and best procurement practices more acute
than ever. Project Beyond, initiated in 2004, is a procurement supply chain
initiative targeting savings of between R200 million (US$30 million) and R300
million (US$45 million) 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
(US$420 million). The project delivered R159 million (US$25 million) of
contract savings on historic baseline expenditure, R101 million (US$15 million)
during the 2005 financial year through addressing commodities such as grinding
media, foodstuffs, mill liners, ore transport, support, bearings, engineering
repairs, and lubricants etc., and an additional R58 million (US$9 million)
contractual savings during the 2006 financial year through addressing
commodities such as steel, fuel rebates, steel wire ropes, lifting equipment
etc. The savings are realised as these renegotiated contracts are utilised by
the mining operations i.e. largely during the 2006 and 2007 financial years.
To date a total R1.6 billion (US$250 million) of spend has been reviewed as
part of Project Beyond. R95 million (US$15 million) has been realised in cost
savings, of which R32 million (US$5 million) applies to the 2005 financial year
and R63 million (US$10 million) applies to the 2006 financial year. An
additional R28 million (US$4 million) in cost savings are estimated to impact
cash flow in the 2007 financial year. The balance of the savings of R36 million
is likely to be achieved through reduced consumption. During the past year,
significant inflationary pressure was faced on commodities such as steel, fuel,
support, copper, zinc, etc. Project Beyond successfully mitigated the impact of
the greater proportion of commodity price inflation on costs.
During the past quarter the focus has been on total cost of ownership (TCO)
commodities such as slurry pumps, rail tracks & locos and salvage, which is
expected to yield long- term savings estimated at between R20 million (US$3
million) to R50 million (US$8 million). Project Beyond also identified an
opportunity for performance based contracting resulting in a productivity
improvement initiative through a gain share arrangement with explosives
suppliers. To date around R18 million (US$3 million) in increased revenue has
resulted on four pilot shafts over the last quarter. This initiative will
continue in the 2007 financial year, extending the gain-share arrangement in
the next quarter to an additional two shafts.
During the 2007 financial year, the Strategic Sourcing commodity teams will
focus on spend not yet addressed through contract renewal initiatives as well
as up coming capital projects.
Project 100+ was established in 2005 with the focus on achieving ongoing and
sustainable cost savings across the South African operations. 2006 has focused
on improving efficiencies and controls on areas such as improved employee
wellness and working conditions, labour management, transport and maintenance
spend. The predominant aim has been to improve cost efficiencies and develop
total cost of ownership projects, in order to ensure that operations are
delivering in an optimal and productive manner.
This last quarter, particular attention has been given to labour optimisation
with a specific focus on the improvement of employee wellness, aimed at
increased productivity. The South African operations are exploring ways to
reduce absenteeism and sick leave as a means of improving overall productivity
levels. There has also been an increasingly important focus on the upgrade of
high density housing in order to improve employees living conditions, through
improved accommodation and an improvement in the quality of meals.
Quarter four has produced some interesting new initiatives, which include the
upgrade of rail tracks in order to improve the efficiency of underground
transport; the implementation of improved underground communication systems in
order to increase safety and productivity measures and a total cost of
ownership project focusing on the replacement of diesel locomotives with
battery locomotives at the long life shafts. These initiatives, along with the
continuing focus on labour management and wellness, Eskom demand side
management, pumping efficiencies monitoring and surface transport
rationalisation, are expected to realise benefits in excess of R100 million
(US$15 million) in fiscal year 2007.
Driefontein
June March
2006 2006
Gold produced - 000"ozs 285.1 284.5
Yield - underground - g/t 8.7 7.9
- combined - g/t 5.1 4.8
Total cash costs - R/kg 76,423 74,280
- US$/oz 372 376
Gold production at 285,100 ounces increased marginally when compared with the
March quarter. Underground grade improved from 7.9 to 8.7 grams per ton for the
quarter as a result of improved grades at 4 and 5 shafts associated with mining
sequencing. These yields are not sustainable going forward due to faulting and
the depletion of many of the high value panels previously encountered. This is
exacerbated in the forthcoming quarter by a number of high grade panels at 4
shaft intersecting faulting and requiring re-establishment. It is anticipated
that yields achieved in future quarters will be closer to historical levels.
Underground tonnage remained steady at 924,000 tons. Surface tons declined from
906,000 tons to 814,000 tons and surface yield declined from 1.7 to
1.0 grams per ton. This was due to the completion of clean up from 1 plant.
Operating costs increased by 3 percent from R681 million (US$110 million) to
R703 million (US$110 million) as a result of the increase in stoping and
development arising from a change in mining mix to more underground volume to
compensate for the decline in surface gold. As a result total cash costs
increased 3 per cent in rand terms from R74,280 to R76,423 per kilogram. In US
dollar terms, total cash costs decreased from US$376 per ounce to US$372 per
ounce. Operating profit increased by 57 per cent from R280 million (US$45
million) in the March quarter to R440 million (US$69 million) in the June
quarter as a consequence of higher rand gold prices.
Capital expenditure increased from R54 million (US$9 million) to R87 million
(US$14 million) for the June quarter. The major portion of this expenditure was
spent on the 1 and 5 shaft project and the 4 shaft pillar extraction.
Grade estimate modelling anticipates a slightly lower grade performance during
the September quarter. Gold forecast for the September quarter will thus be
lower than the June quarter. The cost profile for the September quarter will be
higher due to the annual salary increases.
Kloof
June March
2006 2006
Gold produced - 000"ozs 236.0 207.1
Yield - underground - g/t 8.7 8.6
- combined - g/t 7.4 7.6
Total cash costs - R/kg 87,752 92,236
- US$/oz 427 467
Gold production at Kloof increased by 14 per cent in the June quarter, from
207,100 ounces to 236,000 ounces. This was due to a 13 per cent increase in
underground tonnage due to a concerted effort to restore volumes that had
declined significantly in the last quarter, as well as a result of more shifts
worked compared with the previous quarter, which was influenced by the
Christmas break and a slow start-up thereafter due to a labour dispute. Surface
tons milled increased by 43 per cent from 116,000 tons to 166,000 tons at a
similar yield of 0.9 grams per ton.
The operating costs at R667 million (US$104 million) for the quarter increased
by 8 per cent when compared with the previous quarter"s cost of R616 million
(US$100 million). This was mainly due to the increased production and
development during the quarter. However, the higher gold production and
continued focus on cost control resulted in the total unit cash cost decreasing
by 5 per cent to R87,752 per kilogram, compared with the R92,236 per kilogram
in the March quarter. In US dollar terms total cash costs decreased by 9 per
cent to US$427 per ounce compared with the previous quarter"s US$467 per ounce.
Operating profit improved from R88 million (US$14 million) to R283 million
(US$44 million) in the June quarter, due to the increase in gold produced and
the higher gold price.
Capital expenditure increased from R46 million (US$7 million) to R66 million
(US$10 million) in the June quarter mainly due to increased expenditure at 4
sub vertical shaft and the 1 shaft pillar project.
Gold production for the September quarter is forecast to be in line with the
June quarter. Working costs and capital expenditure are planned to increase in
the September quarter due to a planned increase in development of 7 per cent,
combined with the impact of the annual wage increase of 6 per cent.
Beatrix
June March
2006 2006
Gold produced - 000"ozs 147.7 154.9
Yield - g/t 5.2 5.3
Total cash costs - R/kg 85,481 82,147
- US$/oz 416 416
Gold production at Beatrix decreased by 5 per cent from 154,900 ounces in the
March quarter to 147,700 ounces in the June quarter. The main impact on gold
production was lower volumes from the high grade stoping area at the West
section due to logistical constraints brought about by required changes in
access ways caused by the effects of smectite build-up previously experienced.
Tons milled and yield was therefore marginally lower at 884,000 tons and 5.2
grams per ton respectively compared with 905,000 tons and 5.3 grams per ton in
the previous quarter. There are currently no surface operations at Beatrix.
Operating costs quarter on quarter decreased by 1 per cent from R409 million
(US$66 million) to R406 million (US$63 million). Total cash costs increased
from 82,147 per kilogram (US$416 per ounce) in the March quarter to R85,481 per
kilogram (US$416 per ounce) in the June quarter as a result of the lower
production.
Beatrix posted an operating profit of R188 million (US$29 million) in the June
quarter compared with R116 million (US$18 million) in the March quarter due to
the increased gold price.
Capital expenditure at R75 million (US$12 million) increased from R64 million
(US$10 million) in the March quarter due to additional development metres.
Gold production and costs are forecast to be higher in the September quarter
mainly due to increased tonnage and the annual wage increases. Capital
expenditure will be lower in the next quarter but in line with the planned
capital schedule.
International Operations
Ghana
Tarkwa
June March
2006 2006
Gold produced - 000"ozs 176.0 192.4
Yield - Heap leach - g/t 0.9 0.9
- CIL plant - g/t 1.6 1.7
- Combined - g/t 1.0 1.1
Total cash costs - US$/oz 321 290
For the quarter Tarkwa processed 5.38 million tons and produced 176,000 ounces
of gold at an average yield of 1.02 grams per ton. This performance was lower
than the expected 185,000 ounces and was due mainly to a lack of competent ore
feed for the (carbon in leach) CIL plant which affected throughput rates and
yields. The overall performance of the heap leach facilities was consistent
with the previous quarter.
Total tons mined decreased from 27.0 to 23.4 million tons for the quarter due
to fleet downtime as a result of maintenance, heavy rainfall and the reduction
of high cost mining carried out by a mining contractor. Drilling fleet
shortages also affected mining. This problem has largely been rectified and a
total of four new drills will be on site shortly. Ore tons moved for the
quarter were 6 per cent lower at 5.1 million tons at a mined grade of 1.36
grams per ton. The mined grade was 1.42 grams per ton in the March quarter and
the depletion of the higher grade Mantraim South pit was the prime reason for
the decrease in June. Output from the Teberebie pit which is the primary feed
for the CIL plant was consistent for the quarter, with 1.3 million tons
produced at a marginally reduced grade of 1.43 grams per ton. The overall strip
ratio for the quarter was 3.36.
Total feed to the heap leach was 4.3 million tons at a head grade of 1.21 grams
per ton compared with 4.4 million tons at a head grade of 1.17 grams per ton
for the March quarter. There was a net 740 ounce build up of gold-in-process
with the North facility releasing 4,854 ounces and the South facility
increasing by 5,594 ounces. Overall the heap leach process realised 119,500
ounces for the quarter compared with the 120,500 ounces reported for March.
The total feed to the CIL plant was 14 per cent lower than the previous quarter
at 1.1 million tons. The reduction in plant throughput was driven primarily by
blending issues driven by the lack of competent ore to facilitate optimum
grinding. This problem has been with Tarkwa for some time now and although the
run of mine pads at the crushers have been expanded to cater for different
hardness stockpiles, the lack of sufficient quantities of hard ore in the open
pits remains a challenge for the single stage SAG comminution circuit. In
addition there was an increase of 1,830 ounces in gold-in- process. The
blending issue related to mill feed has also resulted in a decline in the CIL
yields from 1.71 to 1.58 grams per ton as softer higher grade material was held
back to improve the mill blend as a consequence of the factors described above.
The CIL plant produced 56,500 ounces in the June quarter compared to 71,900
ounces in the previous quarter.
Operating costs at the mine were US$56 million (R361 million) including
gold-in-process adjustments. This is US$1 million higher than that reported in
the previous quarter and reflects, primarily, an increase in fleet maintenance
costs (US$2 million) (R13 million), and an increase in fuel costs (US$1
million) (R6 million) offset by savings in numerous other areas of the cost
base. Some of the savings came from a slightly lower consumption of cement per
ton stacked on leach pads and slightly lower cyanide consumed per ton of ore
placed. There were also savings due to exchange rate gains, lower explosive
consumption, a saving on power consumed, lower cost on hired equipment, cheaper
steel balls and a general focus on all cost items in order to offset the
increase in the cost of the high consumption commodities on the mine.
Many of the machines in the mining fleet have now reached the 12,000 hour mark
and the contracted maintenance rates per operating hour are at a maximum. As an
example of the increase in the maintenance rates the hourly cost for a 785C
truck increases from US$23.50 per hour below 12,000 hours to US$65.17 above
12,000 hours. As most of the fleet now moves above the 12,000 hour operating
level similar increases in cost will be experienced.
Operating cost per ton treated, excluding GIP charges, was US$10.75 per ton as
against US$9.80 per ton in the March quarter. The increase in the cost of
cyanide and other associated chemicals, along with cement, continue to
negatively influence the process costs of the heaps, notwithstanding tight
control of the unit of consumption of chemical per ton processed. Total cash
costs at US$321 per ounce compare with the March quarter"s US$290 per ounce,
the increase caused by the decline in production together with the impact of
the cost drivers mentioned above.
Operating profit at US$54 million (R345 million) increased by US$3 million (R26
million) compared with the March quarter due to the higher gold price.
Capital expenditure decreased from US$16 million (R100 million) in the March
quarter to US$13 million (R84 million) in the June quarter. The main areas of
capital expenditure were the completion of the North leach pads and the
purchase of mining equipment, together with the Teberebie cutback.
Gold production for the September quarter is expected to be similar to the
current quarter and in line with an annualised throughput of around 700-720,000
ounces per annum. The purchase of primary and secondary mining equipment for a
total of US$25 million (R186 million) will increase mining flexibility and
reduce costs but these offsets will at best keep unit costs at similar levels.
The feasibility study for the plant expansion is being advanced and an
announcement on this project will be made by calendar year end.
Damang
June March
2006 2006
Gold produced - 000"ozs 55.7 62.0
Yield - g/t 1.3 1.4
Total cash costs - US$/oz 315 344
Gold production at the Damang mine decreased from 62,000 ounces to 55,700
ounces for the June quarter. This planned reduction was driven by a reduction
in mill throughput of 73,000 tons from 1,375,000 to 1,302,000 tons and a
marginal decrease in head grade from 1.50 to 1.44 grams per ton.
Reduction in head grade was due to mining 140,000 less fresh ore feed from the
high grade Amoanda pit as the pit nears final depletion. Mill throughput
reduced as a result of a mill shutdown to replace liners and the processing of
more relatively harder dolerites mined from the Juno 2 south west open pit.
Total tons mined increased from 4.2 to 4.3 million tons and ore mined decreased
marginally from 900,000 to 888,000 tons. The resultant strip ratio was 3.8
compared with the 3.6 reported in March. The Tomento open pit remains the
primary source of oxide feed while the Amoanda and Juno 2 south west open pits
were the primary sources of fresh ore.
The Damang pit cut-back generated 32,000 tons of ore during the quarter and
production from this pit will build up through F2007 until it reaches full
production in F2008 and F2009. Planning has commenced towards the southern part
of the Damang lease and a haul road design is being advanced to access the Rex
open pit which has a reserve of 103,000 ounces.
Operating costs, including gold-in-process adjustments, decreased from US$21
million (R127 million) to US$19 million (R122 million) in the June quarter.
Although ore tons milled decreased quarter on quarter the increased cost of
reagents, steel, and liners and lifters partly offset this decrease as well as
the additional cost of processing more dolerite materials. Cost per ton milled
increased slightly from US$14.54 to US$15.07. Total cash costs decreased from
US$344 per ounce to US$315 per ounce, reflecting a decrease in working cost and
the gold-in-process adjustment.
Operating profit increased from US$14 million (R85 million) to US$16 million
(R102 million) mainly due to the higher gold price.
Capital expenditure for the quarter amounted to US$8 million (R53 million) with
the majority of this expenditure incurred in mining the Damang pit cutback and
the raising of tailings storage facility embankments. The total volume mined
from the Damang pit cutback to date is 4.04 million BCM"s which compares
favourably with the progressive project plan of 4.05 million BCM"s.
Gold production is expected to decrease by around 5 per cent in the September
quarter as the proportion of lower grade stockpiles increases, and the high
grade Amoanda pit becomes depleted. Unit cost are expected to increase on the
back of the lower gold production.
Venezuela
Choco 10
June March
2006 2006
Gold sold - 000"ozs 22.8 5.4
Gold produced - 000"ozs 19.9 5.4
Yield - g/t 1.8 1.6
Total cash costs - US$/oz 293 294
Gold production for the quarter was in line with expectations at 19,900 ounces
notwithstanding water shortages which interrupted production during the month
of June. Water shortages arose as a result of late seasonal rains which
affected the water reservoir supplying the mine. Water supply has been restored
with the onset of the rainy season and the mine has embarked on a full,
detailed study to reduce the reliance on rain water. Studies are being advanced
on supplementing water supply from the reservoir through increased water
efficiencies as well as evaluating alternative sources of water in the area.
During the last week of April the process plant achieved nameplate capacity of
5,400 tons per day for a full week but this level of production has yet to be
achieved over a full month. The mine received its explosive permit on 12 June
2006 and mining operations continued from the Rosika, Coacia and Pisolita open
pits with head grades of 1.94 grams per ton being achieved including the
treatment of low grade stockpiles.
Operating costs including gold-in-process movements was US$7 million (R44
million). Total cash costs amounted to US$293 per ounce driven by the current
level of grade control drilling. Operating profit was US$7 million (R46
million) for the quarter.
The recapitalization of the process plant has commenced with over US$2 million
in capital expenditure for the quarter, with the balance being spent on
exploration. A dedicated team has been seconded to site from other Gold Fields
operations to oversee the capital projects. Exploration has been ramped up to
planned levels with encouraging results indicating extensions at depth at Villa
Balazo Karolina as well as along strike and down dip at Rosika.
Proposed changes to the mining law continue to evolve with the most recent
draft indicating that fully compliant, operating concessions will be
unaffected.
Gold production for the September quarter is expected to improve on current
levels but will be affected by a breakdown of the ball mill which has affected
production during July. Capital expenditure, including exploration, is forecast
to increase in line with previous guidance over the next two quarters.
Australia
St Ives
June March
2006 2006
Gold produced - 000"ozs 116.4 134.3
Yield - Heap leach - g/t 0.4 0.6
- Milling - g/t 3.1 3.3
- Combined - g/t 2.2 2.5
Total cash costs - A$/oz 522 450
- US$/oz 389 334
Gold production for the quarter was 116,400 ounces, 13 per cent down from last
quarter"s 134,300 ounces. The decrease was due to a five day shutdown of the
Lefroy mill in April and lower than planned feed grades from open pit and
underground operations. The quarter"s gold production from the Lefroy mill was
108,700 ounces compared with 125,500 previously. The heap leach produced 7,700
ounces compared with 8,800 ounces, with the decrease resulting from changes to
the pad stacking plan and lower irrigation during the quarter.
Total open pit movements and strip ratios continued to increase during the
quarter with the continuation of the Thunderer open pit pre-strip. During the
quarter 2.8 million bank cubic metres (BCM"s) of ore and waste was mined
compared with 2.4 million BCM"s of ore and waste in the previous quarter. The
average strip ratio increased to 7.6 compared with 4.5 previously. Open pit
mining operations produced 1.0 million tons of ore for the quarter as compared
with 1.2 million tons for the previous quarter. Open pit ore grade decreased to
1.97 grams per ton from 2.20 grams per ton. This was due to additional dilution
from restricted working areas at the Agamemnon open pit and lower grades than
planned from the Mars open pit as the geological model was overestimating
grades. This has resulted in the model being reviewed and an improved model is
now anticipated.
Underground operations produced 455,800 tons of ore at 4.3 grams per ton for
the quarter compared with 446,400 tons at 4.8 grams per ton in the previous
quarter. At the Leviathan complex the final lower grade component of the East
Repulse zone was mined and the lower grade Conqueror zone continued to ramp
up reaching full production levels. The Argo underground mine performed
consistently with an increase in tonnage offset by a marginal decrease
in grade.
Operating costs, including gold-in-process movements, increased from A$58
million (R266 million) to A$65 million (R307 million) for the quarter
reflecting additional costs associated with the shutdown of the Lefroy mill
(A$1.8 million) in April and write-off of exploration costs previously
capitalised arising from the annual review of endowment across the complex
(A$2.5 million). Price participation royalties calculated at 10 per cent of the
average quarterly gold price above A$600 per ounce was payable during the
quarter and increased to A$2.6 million (R17 million) compared with A$2.0
million (R12 million) in the previous quarter due to the higher gold price.
Total cash costs increased to A$522 per ounce in the quarter from A$450 per
ounce due to the decrease in gold production and the increase in operating
costs.
Operating profit at A$33 million (R159 million) was down from the previous
quarter"s A$42 million (R196 million) as a result of the lower gold production.
Capital expenditure for the June quarter was A$19 million (R90 million) against
A$17 million (R79 million) in the March quarter. Mine development capital was
consistent with the previous quarter at A$11 million (R52 million) with
increased expenditure on the Thunderer pre-strip offset by a reduction in
development costs within the Leviathan underground complex. Capitalised
exploration expenditure was approximately A$6 million (R29 million) for the
quarter, against A$5 million (R23 million) previously.
Gold production and cash costs are expected to improve in the September quarter
more in line with historic levels. This will be on the back of increased
tonnages processed and increased head grades from the Argo underground and Mars
open pit.
Agnew
June March
2006 2006
Gold produced - 000"ozs 49.3 55.9
Yield - g/t 4.7 5.0
Total cash costs - A$/oz 400 378
- US$/oz 298 281
Gold production for the quarter was 49,300 ounces, 12 per cent down from last
quarter"s 55,900 ounces. This decrease was mainly due to a reduction in tons
milled as a consequence of a 2.5 day maintenance shutdown in June, shortages of
crushed ore stocks from the crushing circuit due to crusher maintenance in
April and intermittent power supply issues. In addition, feed grade reduced
quarter on quarter from 5.34 to 5.17 grams per ton as a result of Kim
underground delivering lower grades, more in line with its reserve position.
Open pit mining operations at Songvang produced 168,100 tons of ore for the
quarter significantly down on the 195,000 tons produced in the March quarter,
though ore and waste mining volumes increased to 1.2 million bank cubic metres
(BCM"s) from 1.0 million BCM"s the previous quarter. The pit is now in final
cutback configuration and will revert to higher ore production levels by
approximately mid-fiscal 2007. The average strip ratio increased to 19.8
compared with 14.3 previously. The increase in total mining volumes resulted
from greater efficiencies and improved mining practices.
Open pit ore grade increased to 2.1 from 1.8 grams per ton in the previous
quarter. Underground operations delivered 114,800 tons of ore at 11.5 grams per
ton produced compared with 112,100 tons at 12.2 grams per ton in the March
quarter.
Operating costs, including gold-in-process movements, were A$21 million (R100
million) for the June quarter in line with the previous quarter"s result. Total
cash costs increased to A$400 per ounce in the quarter from A$378 per ounce due
to the lower gold production.
Operating profit at A$21 million (R98 million) was in line with the March
quarter as the lower gold production was offset by the higher gold price.
Capital expenditure for the June quarter at A$7 million (R32 million) was
higher than the March quarter"s A$5 million (R24 million). This was due to
increased capital development and costs associated with installation of the
paste fill plant for the underground operations.
September quarter"s gold production is expected to improve over the June
quarter"s result, whilst cash costs will remain flat. Capital expenditure is
expected to increase with the anticipated commencement of an extension to the
Leinster village which is anticipated to cost A$6 million (R30 million).
This extension will better facilitate the fly-in fly-out arrangement for
personnel.
Year ended 30 June 2006 compared with year ended 30 June 2005
Attributable gold production decreased 4 per cent from 4.22 million ounces for
the year ended June 2005 to 4.07 million ounces produced in financial 2006.
This shortfall was at the South African operations where gold production
decreased from 2.82 million ounces to 2.66 million ounces, mainly due to the
loss of nearly a week in September 2005 due to the strike and poor performance
from Kloof due to mining inflexibility and a labour dispute over the New Year
period. At the international operations production was virtually flat at
1.40 million ounces compared with 1.41 million ounces in F2005. This was due to
the increase achieved at Tarkwa arising from the benefit of the new mill
expansion for a full year as compared with 8 months in the preceding year
and the inclusion of the newly acquired Choco 10 mine in Venezuela,
effective from 1 March 2006. This was partly offset by the lower
production from St Ives which operated the old and new mills during the
third quarter of F2005.
Revenue increased by 24 per cent in rand terms (increased 21 per cent in US
dollar terms) from R11,756 million (US$1,893 million) to R14,605 million
(US$2,282 million). The higher gold price of R107,918 per kilogram (US$524 per
ounce) compared with R84,218 per kilogram (US$422 per ounce) achieved in F2005
more than offset the lower production.
Operating costs, including gold-in-process movements, increased from R9,471
million (US$1,525 million) to R10,245 million (US$1,601 million), an increase
of R774 million (US$76 million) or 8 per cent. This increase was mainly due to
the above inflation wage increases in South Africa, amounting to approximately
R230 million (US$36 million), and the significant price increase of important
inputs - namely fuel, steel and cyanide to mention but a few together with the
weaker rand when translating costs at the international operations into South
African rand. Exchange rates weakened from an average of US$1 = R6.21 to US$1 =
R6.40, or 3 per cent and from A$1 = R4.66 to A$1 = R4.79, also 3 per cent year
on year. The weaker rand accounted for approximately R90 million (US$14
million) of the cost increase. Added to this was the increase in volumes
required as grades on average decreased by 7 per cent year on year.
Total cash costs for the Group in rand terms, year on year, increased 12 per
cent from R66,041 per kilogram (US$331 per pounce) to R73,746 per kilogram
(US$358 per ounce) due to the above factors.
At the South African operations operating costs increased by 3 per cent to
R6,884 million for the year compared with R6,660 million the previous year.
This was despite above inflation wage increases as this was offset by the cost
saving initiatives implemented over the year and the lower production. However,
unit cash costs increased 10 per cent from R72,830 to R80,201 per kilogram due
to lower production. At the international operations unit cash costs increased
by 15 per cent from US$273 per ounce to US$309 per ounce, mainly due to the
combined effect of higher stripping ratios and increased cost of inputs driven
by the commodities boom.
Operating profit at R4,360 million (US$681 million), compared with R2,286
million (US$368 million) in the previous year, with the group benefiting from
the higher gold price in all currencies.
Net earnings were R1,389 million (US$217 million) compared with R128 million
(US$21 million) in the previous year. The increase in earnings was largely due
to the 90 per cent increase in operating profit.
Earnings excluding gains and losses on financial instruments and foreign debt
and exceptional items amounted to R1,230 million (US$192 million) this year
compared with R400 million (US$64 million) in financial 2005.
Capital and development projects
Cerro Corona
Gold Fields is continuing to advance its community relations and sustainable
development efforts, particularly in the most proximal communities. After a
series of meetings, a long- term cooperative community development agreement
was reached with the provincial capital of Hualgayoc during April.
Many of the communities that are in this province will also benefit from this
multi-year agreement, which focuses on health, education and domestic water
supplies. Also, in concert with the Ministry of Mines and Energy, Gold Fields
led the effort to complete the design of and begin construction of a water
treatment plant to alleviate some of the water contamination from historic mine
waste outside our property boundaries. The intent in this effort is to
demonstrate our commitment to making things better because we are there.
The company continued to work closely with local, typically very small
contractors to include them in the construction activities wherever practical
and within reasonable economic terms. These small companies are required to
meet all of Gold Fields operating standards including the employment of local
citizens at the prevailing wage rate. All of the other contractors working on
site have a large contingent of locals employed, and with more than 300 locals
employed the project is largely welcomed.
San Martin, the mining contractor, has most of its mining and ancillary
equipment on the project site and preliminary mine road and site earthworks are
well underway. The initial excavations for the process plant and permanent camp
are among those that have been started. The water system for the permanent camp
is well advanced and nearly ready for service. Space has been added to the
construction camp at the former Carolina (Cerro Corona) mill site. There are
now facilities to accommodate and service more than 500 workers.
Hatch, the EP contractor continues to advance the process plant and facility
detailed engineering work with about 87 per cent of this work now complete.
Hatch also continues with the procurement of engineered equipment to assure
timely deliveries. Knight Piesold has completed the design of phase I and phase
II of the tailings disposal facility. Meanwhile Montgomery - Watson, a well
known engineering firm is well advanced with the design and engineering of an
alternate tailings disposal facility. The goal in having two very different
designs for the same facility is to assure that the most appropriate type is
included in the finished project to ensure responsible, safe tailings disposal.
Exploration and corporate development
Gold Fields completed drilling on seven projects during the quarter on its
greenfield exploration sites. Its partner North American Palladium (TSX, Amex:
"PDL") continued with drilling on the Arctic Platinum Project in Finland as
part of their option agreement.
At the Essakane project in Burkina Faso, Gold Fields (earning 60 per cent)
together with partner Orezone Resources Inc. (TSX, Amex: "OZN"), completed its
drill programme on the Essakane Main Zone ("EMZ") in anticipation of a
September resource model completion that will lead into the start of a Bankable
Feasibility Study in the following nine to twelve months. Progress is being
made on the extensive reassay programme being conducted on past drilling in
conjunction with the new drilling. There is a possibility of delay in the
resource model if additional laboratory capacity cannot be found to accelerate
the sampling programme. Orezone also conducted exploration drilling on three
targets outside the Essakane Main Zone funded on a 50:50 basis with Gold
Fields.
On the 100 per cent owned Telikan in Guinea a 5,700 metre RAB drilling
programme was completed during the quarter over previously defined soil
anomalies. Results are still pending that will lead to either the
recommendation of additional RC drilling or relinquishment of the project. With
partner Glencar Mining plc (AIM: "GEX") approximately 2,700 meters of RC
drilling was completed during the quarter on the Bokoro prospect on their 85
per cent Sankarani project in south-western Mali. At the 80 per cent owned
Kisenge project in the southern DRC, continued auger drilling has extended the
Mpokoto anomaly by an additional one kilometre to almost three kilometres in
length. An additional subparallel anomaly, Mpokoto II, has been discovered
about two and a half kilometres southwest of the Mpokoto anomaly through auger
drilling of saprolite as a follow-up of previous termite mound sampling. Both
anomalies will be drilled, and every effort is being made to mobilise a rig to
this part of the DRC. The availability of a suitable drilling contractor is
proving to be problematic in the present market conditions.
At the Central Victoria project in Australia, aircore drilling continued on the
3.2 kilometre mineralized Lockington horizon on Gold Fields 100 per cent-owned
tenements. A second parallel anomaly has been defined by aircore drilling three
kilometres to the east of Lockington on the Fosterville East JV where Gold
Fields is earning 75 per cent equity. The second anomalous trend now exceeds
five kilometres in strike length. 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.
GoldQuest Mining Corporation (TSX Venture: "GQC") in which Gold Fields has a
9.75 per cent interest and is earning a 60 per cent interest in various
tenements in the Dominican Republic continues to report encouraging drill
results from its Las Tres Palmis prospect. Approximately 1,800 meters of
diamond drilling was completed during the quarter on four separate targets. At
the Corona Consolidated project, a joint venture with Buenaventura, an initial
US$1 million of expenditure has been incurred through data compilation and the
drilling of approximately 2,500 meters on several prospects. A new company is
being formed with partner Buenaventura (NYSE: "BVN") to explore this extensive
land holding surrounding Gold Fields 80 per cent Cerro Corona development
project. In the El Callao regional exploration surrounding Gold Fields 95 per
cent owned Choco 10 mine, fieldwork has begun on the recently acquired Choco 6
concession. An extensive resource drilling programme is in progress at Choco 10
and as soon as this is completed during the next quarter, drilling will resume
on the exploration targets being defined.
Corporate
Gold Fields increases stake in Western Areas to 18.9 per cent During the
quarter it was announced on 19 May 2006, that Gold Fields had purchased an
additional 18.27 million Western Areas Limited shares. Further to this on 12
July, an additional 3 million Western Areas Limited shares were purchased
bringing the total stake in Western Areas to 29.16 million shares, or 18.9 per
cent of that Company"s total issued share capital.
Significant potential for regional cooperation with our Kloof Gold Mine is
achievable, in particular with the Phase Two development of that ore body. We
aim to play a role in achieving that cooperation.
Gold Fields announces Mineral Resources of 179.3
million ounces and Ore Reserves of 65.3 million ounces
On 17 May 2006 Gold Fields published its Mineral Resource and Ore Reserve
Statement for the six month period ended on 31 December 2005. This represents a
change in the reporting cycle, from 30 June to 31 December, in order to align
the short and long term planning horizon for the group.
Mineral Resources, inclusive of Ore Reserves, increased by 3 per cent to 179.3
million ounces and Ore Reserves increased by 1 per cent to 65.3 million ounces,
both numbers net of depletion. These increases have been achieved despite
having to use a SEC mandated 3 year trailing average gold price, which is
considerably below prevailing spot prices.
Mineral Resources were calculated using a gold price of R105,000 per kilogram
in South Africa; A$650 in Australia;
and US$475 in Ghana and Peru.
Ore Reserves were calculated using a gold price of R92,000 per kilogram in
South Africa; A$560 in Australia; and US$400 in Ghana and Peru.
The full Mineral Resource and Ore Reserve Declaration is available on the Gold
Fields Website at www.goldfields.co.za
Implications of adopting IFRS 2, share-based payments
IFRS 2, Share-based payments became 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 ended 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 R67.6 million (US$10.6 million)
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 of R67.6 million (US$10.6 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)
June 2006 R21.8 million (US$3.5 million)
The increase in the quarter ending June 2006 is due to the implementation of
the F2005 share plan as approved at the last Annual General Meeting.
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.
Dividend
The company"s policy is to pay out 50 per cent of its earnings, subject to
investment opportunities and after excluding impairments. Earnings are adjusted
to exclude unrealised gains and losses on financial instruments and foreign
debt, but are adjusted to include cash payments and receipts in relation to
such underlying financial instruments.
A final dividend has been declared payable to all shareholders as follows:
- final dividend number 65: 110 SA cents per share
- last date to trade cum-dividend: Friday 18 August 2006
- sterling and US dollar conversion date: Monday 21 August 2006
- trading commences ex-dividend: Monday 21 August 2006
- record date: Friday 25 August 2006
- payment date: Monday 28 August 2006
Share certificates may not be dematerialised or rematerialised between Monday,
21 August 2006 and Friday, 25 August 2006, both dates inclusive.
Outlook
Gold production for the September quarter should be marginally higher when
compared with the June quarter. Total cash costs should also increase due to
the wage increases at the South African operations.
Basis of accounting
The unaudited results for the quarter and year have been prepared on the
International Financial Reporting Standards (IFRS) basis. The detailed
financial, operational and development results for the June 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.
Audit review
The year-end results have been reviewed in terms of Rule 3.23 of the listing
requirements of the JSE Limited by the Company"s auditors,
PricewaterhouseCoopers Inc.This unqualified review opinion is available upon
request from the Company Secretary and on the web site.
I.D. Cockerill
Chief Executive Officer
3 August 2006
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand
Quarter
June March June
2006 2006 2005
Revenue 4,369.0 3,734.4 3,156.3
Operating costs 2,731.5 2,573.4 2,474.2
Gold inventory change (22.7) (26.4) 26.1
Operating profit 1,660.2 1,187.4 656.0
Amortisation and depreciation 423.4 383.6 391.2
Net operating profit 1,236.8 803.8 264.8
Finance income 35.0 73.5 11.2
- Net interest received/(paid) (5.0) (6.9) 15.1
- Gain/(loss) on foreign debt, net of cash 40.0 80.4 (3.9)
Gain/(loss) on financial instruments 23.8 (20.2) 100.3
Other expenses (55.6) (83.5) (30.6)
Exploration (94.0) (33.6) (60.6)
Profit before tax and exceptional items 1,146.0 740.0 285.1
Exceptional gain/(loss) 6.2 53.2 (359.2)
Profit/(loss) before taxation 1,152.2 793.2 (74.1)
Mining and income taxation 469.1 224.5 (61.7)
- Normal taxation 227.0 156.1 57.3
- Deferred taxation 242.1 68.4 (119.0)
Net profit/(loss) 683.1 568.7 (12.4)
Attributable to:
- Ordinary shareholders 604.4 483.0 (26.9)
- Minority shareholders 78.7 85.7 14.5
Exceptional items:
Profit on sale of investments 10.0 28.5 10.0
Profit/(loss) on sale of assets / mineral
rights (0.9) 24.5 46.6
Harmony hostile bid costs - - (145.1)
IAMGold transaction costs - - 6.9
Retirement of health care obligations - - -
Impairment of assets - - (278.1)
Other (2.9) 0.2 0.5
Total exceptional items 6.2 53.2 (359.2)
Taxation 2.8 (14.1) 56.9
Net exceptional items after tax and
minorities 9.0 39.1 (302.3)
Net earnings/(loss) 604.4 483.0 (26.9)
Net earnings/(loss) per share (cents) 122 98 (5)
Diluted earnings/(loss) per share (cents) 112 97 (5)
Headline earnings 593.8 445.9 121.6
Headline earnings per share (cents) 120 90 25
Net earnings excluding gains and losses on
financial instruments 536.0 376.0 216.6
and foreign debt, net of cash and
exceptional items
Net earnings per share excluding gains and
losses on financial
instruments and foreign debt, net of cash
and exceptional items 108 76 44
(cents)
Gold sold - managed kg 33,875 34,104 35,836
Gold price received R/kg 128,974 109,500 88,076
Total cash costs R/kg 77,187 73,378 67,773
South African Rand Year ended
Adjusted
June June
2006 2005
Revenue 14,604.7 11,756.3
Operating costs 10,303.9 9,502.0
Gold inventory change (58.8) (31.4)
Operating profit 4,359.6 2,285.7
Amortisation and depreciation 1,536.0 1,512.1
Net operating profit 2,823.6 773.6
Finance income 126.2 97.5
- Net interest received/(paid) 5.7 80.6
- Gain/(loss) on foreign debt, net of cash 120.5 16.9
Gain/(loss) on financial instruments (24.0) 344.0
Other expenses (186.9) (105.3)
Exploration (247.9) (197.4)
Profit before tax and exceptional items 2,491.0 912.4
Exceptional gain/(loss) 63.9 (554.7)
Profit/(loss) before taxation 2,554.9 357.7
Mining and income taxation 938.8 101.5
- Normal taxation 578.3 262.1
- Deferred taxation 360.5 (160.6)
Net profit/(loss) 1,616.1 256.2
Attributable to:
- Ordinary shareholders 1,388.6 127.7
- Minority shareholders 227.5 128.5
Exceptional items:
Profit on sale of investments 40.3 50.3
Profit/(loss) on sale of assets / mineral rights 23.6 46.6
Harmony hostile bid costs - (315.5)
IAMGold transaction costs - (57.9)
Retirement of health care obligations - (4.8)
Impairment of assets - (278.1)
Other - 4.7
Total exceptional items 63.9 (554.7)
Taxation (11.9) 53.9
Net exceptional items after tax and minorities 52.0 (500.8)
Net earnings/(loss) 1,388.6 127.7
Net earnings/(loss) per share (cents) 281 26
Diluted earnings/(loss) per share (cents) 270 25
Headline earnings 1,336.6 239.3
Headline earnings per share (cents) 270 49
Net earnings excluding gains and losses on
financial instruments and foreign debt,
net of cash and exceptional items 1,230.4 399.9
Net earnings per share excluding gains and
losses on financial instruments and
foreign debt, net of cash and
exceptional items (cents) 249 81
Gold sold - managed kg 135,332 139,594
Gold price received R/kg 107,918 84,218
Total cash costs R/kg 73,746 66,041
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
United States Dollars Quarter
Adjusted
June March June
2006 2006 2005
Revenue 682.7 602.2 492.4
Operating costs 426.8 416.5 385.5
Gold inventory change (3.6) (4.1) 4.3
Operating profit 259.5 189.8 102.6
Amortisation and depreciation 66.2 62.0 60.9
Net operating profit 193.3 127.8 41.7
Finance income 5.7 11.6 1.6
- Net interest received/(paid) (0.8) (1.0) 2.3
- Gain/(loss) on foreign debt, net of cash 6.5 12.6 (0.7)
Gain/(loss) on financial instruments 3.5 (3.3) 15.7
Other expenses (8.7) (13.2) (4.7)
Exploration (14.7) (5.5) (9.5)
Profit before tax and exceptional items 179.1 117.4 44.8
Exceptional gain/(loss) 1.0 8.3 (57.5)
Profit before taxation 180.1 125.7 (12.7)
Mining and income taxation 73.3 35.8 (10.3)
- Normal taxation 35.5 25.0 8.8
- Deferred taxation 37.8 10.8 (19.1)
Net profit 106.8 89.9 (2.4)
Attributable to:
- Ordinary shareholders 94.6 76.3 (4.5)
- Minority shareholders 12.2 13.6 2.1
Exceptional items:
Profit on sale of investments 1.6 4.4 1.5
Profit/(loss) on sale of assets / mineral
rights (0.1) 3.8 7.5
Harmony hostile bid costs - - (23.0)
IAMGold transaction costs - - 1.3
Retirement of health care obligations - - -
Impairment of assets - - (44.8)
Other (0.5) 0.1 -
Total exceptional items 1.0 8.3 (57.5)
Taxation 0.4 (2.1) 9.2
Net exceptional items after tax and minorities 1.4 6.2 (48.3)
Net earnings 94.6 76.3 (4.5)
Net earnings per share (cents) 19 16 (1)
Diluted earnings per share (cents) 17 16 (1)
Headline earnings 92.9 70.6 16.3
Headline earnings per share (cents) 18 15 4
Net earnings excluding gains and losses
on financial instruments and
foreign debt, net of cash and exceptional items 83.8 59.7 28.2
Net earnings per share excluding gains
and losses on financial
instruments and foreign debt, net of cash
and exceptional items (cents) 17 12 6
South African rand/United States dollar
conversion rate 6.39 6.14 6.39
South African rand/Australian dollar
conversion rate 4.77 4.56 4.91
Gold sold - managed ozs (000) 1,089 1,097 1,152
Gold price received $/oz 628 555 429
Total cash costs $/oz 376 372 330
United States Dollars Year ended
Adjusted
June June
2006 2005
Revenue 2,282.0 1,893.1
Operating costs 1,610.0 1,530.1
Gold inventory change (9.2) (5.1)
Operating profit 681.2 368.1
Amortisation and depreciation 240.0 243.5
Net operating profit 441.2 124.6
Finance income 20.0 15.7
- Net interest received/(paid) 0.9 13.0
- Gain/(loss) on foreign debt, net of cash 19.1 2.7
Gain/(loss) on financial instruments (4.0) 55.4
Other expenses (29.2) (17.0)
Exploration (38.7) (31.8)
Profit before tax and exceptional items 389.3 146.9
Exceptional gain/(loss) 10.0 (89.3)
Profit before taxation 399.3 57.6
Mining and income taxation 146.7 16.3
- Normal taxation 90.4 42.2
- Deferred taxation 56.3 (25.9)
Net profit 252.6 41.3
Attributable to:
- Ordinary shareholders 217.1 20.6
- Minority shareholders 35.5 20.7
Exceptional items:
Profit on sale of investments 6.3 8.1
Profit/(loss) on sale of assets / mineral rights 3.7 7.5
Harmony hostile bid costs - (50.8)
IAMGold transaction costs - (9.3)
Retirement of health care obligations - (0.8)
Impairment of assets - (44.8)
Other - 0.8
Total exceptional items 10.0 (89.3)
Taxation (1.9) 8.7
Net exceptional items after tax and minorities 8.1 (80.6)
Net earnings 217.1 20.6
Net earnings per share (cents) 44 4
Diluted earnings per share (cents) 42 4
Headline earnings 209.0 38.5
Headline earnings per share (cents) 42 8
Net earnings excluding gains and losses
on financial instruments and
foreign debt, net of cash and exceptional items 192.3 64.4
Net earnings per share excluding gains
and losses on financial
instruments and foreign debt, net of cash
and exceptional items (cents) 39 13
South African rand/United States dollar conversion rate 6.40 6.21
South African rand/Australian dollar conversion rate 4.79 4.66
Gold sold - managed ozs (000) 4,351 4,488
Gold price received $/oz 524 422
Total cash costs $/oz 358 331
Balance sheet
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand United States Dollars
Adjusted Adjusted
June June June June
2006 2005 2006 2005
Property, plant and equipment 23,174.4 16,959.5 3,119.0 2,531.3
Non-current assets 484.0 389.0 65.1 58.1
Investments 2,483.9 992.8 334.3 148.2
Current assets 4,351.2 5,656.1 585.6 844.2
- Other current assets 2,733.7 2,281.1 367.9 340.5
- Cash and deposits 1,617.5 3,375.0 217.7 503.7
Total assets 30,493.5 23,997.4 4,104.0 3,581.8
Shareholders" equity 19,305.1 16,534.1 2,598.3 2,467.8
Deferred taxation 5,106.0 3,249.8 687.2 485.0
Long-term loans 2,021.6 1,176.0 272.4 175.5
Environmental rehabilitation
provisions 1,079.3 905.8 145.3 135.2
Post-retirement health care
provisions 18.0 24.1 2.4 3.6
Current liabilities 2,963.5 2,107.6 398.4 314.7
- Other current liabilities 2,641.8 1,820.1 355.4 271.8
- Current portion of
long-term loans 321.7 287.5 43.0 42.9
Total equity and liabilities 30,493.5 23,997.4 4,104.0 3,581.8
South African rand/US dollar
conversion rate 7.43 6.70
South African rand/Australian
dollar conversion rate 5.44 5.15
Condensed statement of changes in equity
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand United States Dollars
Adjusted Adjusted
June June June June
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
Adjusted 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 818.1 852.6 (175.1) (14.5)
Issue of share capital 1.3 0.4 0.2 0.1
Increase of share premium 116.7 21.7 18.2 3.5
Net revaluation surplus
arising on acquisition of
subsidiaries 168.7 - 27.3 -
Marked to market valuation of
listed investments and
instruments 431.7 65.4 67.4 10.5
Dividends (477.7) (344.5) (74.8) (54.5)
Increase in share based
payment reserve 67.6 52.0 10.6 8.4
Net profit attributable to
ordinary shareholders 1,388.6 127.7 217.1 20.6
Net profit attributable to
minority shareholders 227.5 128.5 35.5 20.7
Increase in minorities 28.5 18.1 4.1 (5.1)
Balance as at the end of June 19,305.1 16,534.1 2,598.3 2,467.8
Reconciliation of headline earnings with net earnings
Figures are in millions unless otherwise stated
South African Rand United States Dollars
Adjusted Adjusted
June June June June
2006 2005 2006 2005
Net earnings 1,388.6 127.7 217.1 20.6
Profit on sale of investments (40.3) (50.3) (6.3) (8.1)
Taxation effect of profit on sale of
investments 1.9 3.1 0.3 0.5
Profit on sale of assets / mineral
rights (23.6) - (3.7) -
Taxation effect of profit on sale of
assets 10.0 - 1.6 -
Impairment of assets - 260.9 - 42.0
Taxation effect of impairment of
assets - (51.7) - (8.3)
Profit on sale of exploration rights - (46.6) - (7.5)
Other after tax adjustments - (3.8) - (0.7)
Headline earnings 1,336.6 239.3 209.0 38.5
Headline earnings per share - cents 270 49 42 8
Based on headline earnings as given
above divided by 492,922,941
(F2005 - 491,987,508) being the
weighted average number of
ordinary shares in issue for F2006.
Cash flow statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand Quarter
Adjusted Adjusted
June March June
2006 2006 2005
Cash flows from operating activities 1,529.3 1,116.3 707.9
Profit before tax and exceptional items 1,146.0 740.0 285.1
Exceptional items 6.2 53.2 (359.2)
Amortisation and depreciation 423.4 383.6 391.2
Change in working capital 134.3 228.7 68.1
Taxation paid (81.3) (134.9) (69.0)
Other non-cash items (99.3) (154.3) 391.7
Dividends paid (45.9) (235.0) (48.2)
Ordinary shareholders - (197.7) (0.1)
Minority shareholders in subsidiaries (45.9) (37.3) (48.1)
Cash flows in investing activities (1,582.0) (3,139.8) (403.0)
Capital expenditure - additions (662.8) (472.8) (441.8)
Capital expenditure - proceeds on
disposal 10.3 21.9 23.5
Purchase of subsidiaries (21.7) (2,537.6) -
Purchase of investments (851.2) (156.1) (17.2)
Proceeds on the disposal of investments 1.6 8.2 66.1
Environmental and post-retirement
health care payments (58.2) (3.4) (33.6)
Cash flows from financing activities 37.4 835.8 -
Loans received - 986.7 0.1
Loans repaid - (147.5) (0.1)
Minority shareholder"s loan (repaid)/
received (33.6) (44.0) -
Shares issued 71.0 40.6 -
Net cash (outflow)/inflow (61.2) (1,422.7) 256.7
Translation adjustment 177.2 (13.0) 187.5
Cash at beginning of period 1,501.5 2,937.2 2,930.8
Cash at end of period 1,617.5 1,501.5 3,375.0
Year ended
June June
2006 2005
Cash flows from operating activities 3,504.9 1,792.1
Profit before tax and exceptional items 2,491.0 912.4
Exceptional items 63.9 (554.7)
Amortisation and depreciation 1,536.0 1,512.1
Change in working capital (23.8) (11.2)
Taxation paid (351.0) (230.6)
Other non-cash items (211.2) 164.1
Dividends paid (477.7) (455.7)
Ordinary shareholders (394.5) (344.5)
Minority shareholders in subsidiaries (83.2) (111.2)
Cash flows in investing activities (5,481.8) (2,199.4)
Capital expenditure - additions (1,862.4) (2,163.8)
Capital expenditure - proceeds on disposal 40.0 63.6
Purchase of subsidiaries (2,559.3) -
Purchase of investments (1,046.2) (188.5)
Proceeds on the disposal of investments 18.2 162.3
Environmental and post-retirement health care
payments (72.1) (73.0)
Cash flows from financing activities 673.0 (56.9)
Loans received 986.7 16.9
Loans repaid (287.5) (206.8)
Minority shareholder"s loan (repaid) / received (144.2) 110.9
Shares issued 118.0 22.1
Net cash (outflow)/inflow (1,781.6) (919.9)
Translation adjustment 24.1 160.4
Cash at beginning of period 3,375.0 4,134.5
Cash at end of period 1,617.5 3,375.0
United States Dollars Quarter
Adjusted
June March June
2006 2006 2005
Cash flows from operating activities 234.5 176.4 110.2
Profit before tax and exceptional items 179.0 117.4 44.8
Exceptional items 1.0 8.3 (57.5)
Amortisation and depreciation 66.2 62.0 60.9
Change in working capital 21.0 34.6 11.1
Taxation paid (17.1) (22.0) (12.5)
Other non-cash items (15.6) (23.9) 63.4
Dividends paid (7.2) (38.2) (7.2)
Ordinary shareholders - (32.4) -
Minority shareholders in subsidiaries (7.2) (5.8) (7.2)
Cash flows in investing activities (247.3) (509.9) (61.7)
Capital expenditure - additions (103.6) (75.9) (67.9)
Capital expenditure - proceeds on disposal 1.7 3.4 3.7
Purchase of subsidiaries (3.5) (413.6) (2.5)
Purchase of investments (133.0) (24.5) 2.9
Proceeds on the disposal of investments 0.2 1.3 7.5
Environmental and post-retirement health
care payments (9.1) (0.6) (5.4)
Cash flows from financing activities 9.7 129.8 1.2
Loans received 3.8 154.2 -
Loans repaid - (23.4) 0.4
Minority shareholder"s loan (repaid) /
received (5.2) (7.3) 0.8
Shares issued 11.1 6.3 -
Net cash (outflow)/inflow (10.3) (241.9) 42.5
Translation adjustment (11.1) 19.9 (13.0)
Cash at beginning of period 239.1 461.1 474.2
Cash at end of period 217.7 239.1 503.7
United States Dollars Year ended
Adjusted
June June
2006 2005
Cash flows from operating activities 547.7 287.4
Profit before tax and exceptional items 389.2 146.9
Exceptional items 10.0 (89.3)
Amortisation and depreciation 240.0 243.5
Change in working capital (3.7) (1.8)
Taxation paid (54.8) (38.4)
Other non-cash items (33.0) 26.5
Dividends paid (74.8) (71.8)
Ordinary shareholders (61.8) (54.5)
Minority shareholders in subsidiaries (13.0) (17.3)
Cash flows in investing activities (873.8) (354.3)
Capital expenditure - additions (291.0) (348.4)
Capital expenditure - proceeds on disposal 6.3 10.2
Purchase of subsidiaries (417.1) (30.4)
Purchase of investments (163.5) 18.6
Proceeds on the disposal of investments 2.8 7.5
Environmental and post-retirement health care payments (11.3) (11.8)
Cash flows from financing activities 108.5 (9.1)
Loans received 158.0 2.7
Loans repaid (44.9) (33.3)
Minority shareholder"s loan (repaid) / received (23.0) 17.9
Shares issued 18.4 3.6
Net cash (outflow)/inflow (292.4) (147.8)
Translation adjustment 6.4 (4.8)
Cash at beginning of period 503.7 656.3
Cash at end of period 217.7 503.7
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 June 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$37.8 million not yet realised in cash is detailed below:
Payment value dates Future cash flows - A$ million
30 June 2006 12.9
29 September 2006 12.6
29 December 2006 12.3
TOTAL 37.8
The balance of the unmatured call options purchased at a total cost of
US$8.3 million, are detailed below:
US Dollars / Australian Dollars call options
Year ended 30 June 2007
Australian dollar call options:
Amount (US dollars) - 000"s 75,000
Average strike price - (US$/A$) 0.7670
The marked to market value of all transactions making up the positions in the
above table was a positive US$0.3 million. This was based on an exchange rate
of A$/US$ 0.7315. The value was based on the prevailing interest rates and
volatilities at the time.
US Dollars / Rand forward purchases
Year ended 30 June 2007
Forward purchases:
Amount (US Dollars) - 000"s 30,000
Average rate - (ZAR/US$) 6.8319
The marked to market value of all transactions making up the positions in the
above table was a positive R20.2 million (US$2.7 million). The value was based
on an exchange rate of ZAR/US$7.43 and the prevailing interest rates and
volatilities at the time. Rand forward purchases of US$30 million matured on 5
June 2006. These were extended to mature on 5 December 2006, resulting in a
cash inflow of R6.2 million.
Total cash costs
Gold Institute Industry Standard
All figures are in Rand millions unless otherwise stated
Total Mine
Operations
Operating costs (1)
June 2006 2,731.5
March 2006 2,573.4
Financial year ended 10,303.9
Gold-in-process
and inventory change*
June 2006 (17.5)
March 2006 (17.4)
Financial year ended (37.9)
Less: Rehabilitation
costs
June 2006 9.9
March 2006 9.8
Financial year ended 39.2
Production taxes
June 2006 7.9
March 2006 8.7
Financial year ended 33.7
General and admin
June 2006 95.9
March 2006 87.1
Financial year ended 364.8
Exploration costs
June 2006 40.0
March 2006 -
Financial year ended 40.0
Cash operating costs
June 2006 2,560.3
March 2006 2,450.4
Financial year ended 9,788.3
Plus: Production taxes
June 2006 7.9
March 2006 8.7
Financial year ended 33.7
Royalties
June 2006 46.5
March 2006 43.4
Financial year ended 158.2
TOTAL CASH COSTS (2)
June 2006 2,614.7
March 2006 2,502.5
Financial year ended 9,980.2
Plus: Amortisation*
June 2006 388.2
March 2006 348.9
Financial year ended 1,409.4
Rehabilitation
June 2006 9.9
March 2006 9.8
Financial year ended 39.2
TOTAL
PRODUCTION COSTS(3)
June 2006 3,012.8
March 2006 2,861.2
Financial year ended 11,428.8
Gold sold
- thousand ounces
June 2006 1,089.1
March 2006 1,096.5
Financial year ended 4,351.0
TOTAL CASH COSTS
June 2006 376
- US$/oz March 2006 372
Financial year ended 358
TOTAL PRODUCTION COSTS
June 2006 433
- US$/oz March 2006 425
Financial year ended 410
South African Operations
Total Driefontein Kloof Beatrix
Operating costs (1)
June 2006 1,775.8 703.3 666.7 405.8
March 2006 1,704.9 680.5 615.6 408.8
Financial year ended 6,884.4 2,714.4 2,555.3 1 ,614.7
Gold-in-process
and inventory change*
June 2006 - - - -
March 2006 - - - -
Financial year ended - - - -
Less: Rehabilitation
costs
June 2006 9.5 2.8 4.1 2.6
March 2006 9.4 2.8 4.1 2.5
Financial year ended 37.7 11.2 16.4 10.1
Production taxes
June 2006 7.9 3.7 3.5 0.7
March 2006 8.7 4.1 3.3 1.3
Financial year ended 33.7 15.6 14.3 3.8
General and admin
June 2006 51.7 22.7 18.5 10.5
March 2006 48.5 20.4 17.5 10.6
Financial year ended 212.1 89.2 77.5 45.4
Exploration costs
June 2006 - - - -
March 2006 - - - -
Financial year ended - - - -
Cash operating costs
June 2006 1,706.7 674.1 640.6 392.0
March 2006 1,638.3 653.2 590.7 394.4
Financial year ended 6,600.9 2,598.4 2,447.1 1,555.4
Plus: Production taxes
June 2006 7.9 3.7 3.5 0.7
March 2006 8.7 4.1 3.3 1.3
Financial year ended 33.7 15.6 14.3 3.8
Royalties
June 2006 - - - -
March 2006 - - - -
Financial year ended - - - -
TOTAL CASH COSTS (2)
June 2006 1,714.6 677.8 644.1 392.7
March 2006 1,647.0 657.3 594.0 395.7
Financial year ended 6,634.6 2,614.0 2,461.4 1,559.2
Plus: Amortisation*
June 2006 173.5 75.2 70.0 28.3
March 2006 153.0 60.9 57.7 34.4
Financial year ended 626.8 258.9 256.2 111.7
Rehabilitation
June 2006 9.5 2.8 4.1 2.6
March 2006 9.4 2.8 4.1 2.5
Financial year ended 37.7 11.2 16.4 10.1
TOTAL
PRODUCTION COSTS(3)
June 2006 1,897.6 755.8 718.2 423.6
March 2006 1,809.4 721.0 655.8 432.6
Financial year ended 7,299.1 2,884.1 2,734.0 1,681.0
Gold sold
- thousand ounces
June 2006 668.8 285.1 236.0 147.7
March 2006 646.4 284.5 207.1 154.9
Financial year ended 2,659.7 1,149.5 914.0 596.1
TOTAL CASH COSTS
June 2006 401 372 427 416
- US$/oz March 2006 415 376 467 416
Financial year ended 390 355 421 409
TOTAL PRODUCTION COSTS
June 2006 444 415 476 449
- US$/oz March 2006 456 413 516 455
Financial year ended 429 392 467 441
International Operations
Ghana
Total Tarkwa Damang
Operating costs (1)
June 2006 955.7 370.1 125.6
March 2006 868.5 344.1 123.4
Financial year ended 3,419.5 1,354.7 496.4
Gold-in-process
and inventory change*
June 2006 (17.5) (7.7) (3.9)
March 2006 (17.4) (0.7) 4.0
Financial year ended (37.9) (25.4) (17.7)
Less: Rehabilitation
costs
June 2006 0.4 0.4 -
March 2006 0.4 0.4 -
Financial year ended 1.5 1.5 -
Production taxes
June 2006 - - -
March 2006 - - -
Financial year ended - - -
General and admin
June 2006 44.2 21.6 3.2
March 2006 38.6 20.1 3.0
Financial year ended 152.7 73.8 12.2
Exploration costs
June 2006 40.0 - 13.1
March 2006 - - -
Financial year ended 40.0 - 13.1
Cash operating costs
June 2006 853.6 340.4 105.4
March 2006 812.1 322.9 124.4
Financial year ended 3,187.4 1,254.0 488.8
Plus: Production taxes
June 2006 - - -
March 2006 - - -
Financial year ended - - -
Royalties
June 2006 46.5 21.2 6.7
March 2006 43.4 19.8 6.5
Financial year ended 158.2 71.6 23.6
TOTAL CASH COSTS (2)
June 2006 900.1 361.6 112.1
March 2006 855.5 342.7 130.9
Financial year ended 3,345.6 1,325.6 512.4
Plus: Amortisation*
June 2006 214.7 56.2 6.0
March 2006 195.9 61.5 6.1
Financial year ended 782.6 232.8 25.1
Rehabilitation
June 2006 0.4 0.4 -
March 2006 0.4 0.4 -
Financial year ended 1.5 1.5 -
TOTAL
PRODUCTION COSTS(3)
June 2006 1,115.2 418.2 118.1
March 2006 1,051.8 404.6 137.0
Financial year ended 4,129.7 1,559.9 537.5
Gold sold
- thousand ounces
June 2006 420.3 176.0 55.7
March 2006 450.0 192.4 62.0
Financial year ended 1,691.4 709.2 235.1
TOTAL CASH COSTS
June 2006 335 321 315
- US$/oz March 2006 310 290 344
Financial year ended 309 292 341
TOTAL PRODUCTION COSTS
June 2006 415 372 332
- US$/oz March 2006 381 343 360
Financial year ended 382 344 357
International Operations
Venezuela Australia #
Choco 10 St Ives Agnew
Operating costs (1)
June 2006 41.1 316.8 102.1
March 2006 14.9 292.7 93.4
Financial year ended 56.0 1,121.0 391.4
Gold-in-process
and inventory change*
June 2006 2.9 (6.9) (1.9)
March 2006 (5.4) (18.2) 2.9
Financial year ended (2.5) (25.5) (2.2)
Less: Rehabilitation
costs
June 2006 - - -
March 2006 - - -
Financial year ended - - -
Production taxes
June 2006 - - -
March 2006 - - -
Financial year ended - - -
General and admin
June 2006 3.7 9.0 6.7
March 2006 0.4 10.4 4.7
Financial year ended 4.1 37.4 25.2
Exploration costs
June 2006 - 22.6 4.3
March 2006 - - -
Financial year ended - 22.6 4.3
Cash operating costs
June 2006 40.3 278.3 89.2
March 2006 9.1 264.1 91.6
Financial year ended 49.4 1,035.5 359.7
Plus: Production taxes
June 2006 - - -
March 2006 - - -
Financial year ended - - -
Royalties
June 2006 2.5 11.4 4.7
March 2006 0.7 11.6 4.8
Financial year ended 3.2 41.5 18.3
TOTAL CASH COSTS (2)
June 2006 42.8 289.7 93.9
March 2006 9.8 275.7 96.4
Financial year ended 52.6 1,077.0 378.0
Plus: Amortisation*
June 2006 13.0 139.5
March 2006 0.2 128.1
Financial year ended 13.2 511.5
Rehabilitation
June 2006 - -
March 2006 - -
Financial year ended - -
TOTAL
PRODUCTION COSTS(3)
June 2006 55.8 523.1
March 2006 10.0 500.2
Financial year ended 65.8 1,966.5
Gold sold
- thousand ounces
June 2006 22.8 116.4 49.3
March 2006 5.4 134.3 55.9
Financial year ended 28.3 496.4 222.4
TOTAL CASH COSTS
June 2006 293 389 298
- US$/oz March 2006 294 334 281
Financial year ended 294 339 266
TOTAL PRODUCTION COSTS
June 2006 383 494
- US$/oz March 2006 300 428
Financial year ended 367 427
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 = R6.39 and US$1 = R6.14 for the June
and March 2006 quarters respectively. For F2006 average rate US$1 = R6.40.
# As a significant portion of the acquisition price was allocated to
tenements of St Ives and Agnew based on endowment ounces and also as these
two Australian operations are entitled to transfer and then off-set tax losses
from one company to another, it is not meaningful to split the income statement
below operating profit.
TOTAL CASH COSTS EXCLUDING ORE RESERVE DEVELOPMENT COSTS
(IN LINE WITH PEER GROUP REPORTING)
Total Mine
Operations
TOTAL CASH COSTS (2)
June 2006 2,614.7
March 2006 2,502.5
Financial year ended 9,980.2
Less: June 2006 210.3
Ore reserve
development costs March 2006 184.8
Financial year ended 774.8
ADJUSTED TOTAL CASH COSTS
June 2006 2,404.4
March 2006 2,317.7
Financial year ended 9,205.4
Gold sold - kilograms
June 2006 33,875
March 2006 34,104
Financial year ended 135,332
Gold sold - thousand ounces
June 2006 1,089.1
March 2006 1,096.5
Financial year ended 4,351.0
ADJUSTED TOTAL CASH COSTS
June 2006 70,979
- R/kilogram March 2006 67,960
Financial year ended 68,021
ADJUSTED TOTAL CASH COSTS
June 2006 345
- US$/oz March 2006 344
Financial year ended 331
South African Operations
Total Driefontein Kloof Beatrix
TOTAL CASH COSTS (2)
June 2006 1,714.6 677.8 644.1 392.7
March 2006 1,647.0 657.3 594.0 395.7
Financial year ended 6,634.6 2,614.0 2,461.4 1559.2
Less: June 2006 210.3 82.0 71.2 57.1
Ore reserve
development costs March 2006 184.8 66.7 64.0 54.1
Financial year ended 774.8 294.8 265.0 215.0
ADJUSTED TOTAL CASH COSTS
June 2006 1,504.3 595.8 572.9 335.6
March 2006 1,462.2 590.6 530.0 341.6
Financial year ended 5,859.8 2,319.2 2,916.4 1,344.2
Gold sold - kilograms
June 2006 20,803 8,869 7,340 4,594
March 2006 20,106 8,849 6,440 4,817
Financial year ended 82,725 35,755 28,429 18,541
Gold sold - thousand ounces
June 2006 668.8 285.1 236.0 147.7
March 2006 646.4 284.5 207.1 154.9
Financial year ended 2,659.7 1,149.5 914.0 596.1
ADJUSTED TOTAL CASH COSTS
June 2006 72,312 67,178 78,052 73,052
- R/kilogram March 2006 72,725 66,742 82,298 70,916
Financial year ended 70,835 64,864 77,259 72,499
ADJUSTED TOTAL CASH COSTS
June 2006 352 327 380 356
- US$/oz March 2006 368 338 417 359
Financial year ended 344 315 375 352
International Operations
Ghana
Total Tarkwa Damang
TOTAL CASH COSTS (2)
June 2006 900.1 361.6 112.1
March 2006 855.5 342.7 130.9
Financial year ended 3,345.6 1,325.6 512.4
Less: June 2006 - - -
Ore reserve
development costs March 2006 - - -
Financial year ended - - -
ADJUSTED TOTAL CASH COSTS
June 2006 900.1 361.6 112.1
March 2006 855.5 342.7 130.9
Financial year ended 3,345.6 1,325.6 512.4
Gold sold - kilograms
June 2006 13,072 5,475 1,733
March 2006 13,998 5,984 1,929
Financial year ended 52,607 22,060 7,312
Gold sold - thousand ounces
June 2006 420.3 176.0 55.7
March 2006 450.0 192.4 62.0
Financial year ended 1,691.4 709.2 235.1
ADJUSTED TOTAL CASH COSTS
June 2006 68,857 66,046 64,686
- R/kilogram March 2006 61,116 57,269 67,859
Financial year ended 63,596 60,091 70,077
ADJUSTED TOTAL CASH COSTS
June 2006 335 321 315
- US$/oz March 2006 310 290 344
Financial year ended 309 292 341
International Operations
Venezuela Australia #
Choco 10 St Ives Agnew
TOTAL CASH COSTS (2)
June 2006 42.8 289.7 93.9
March 2006 9.8 275.7 96.4
Financial year ended 52.6 1,077.0 378.0
Less: June 2006 - - -
Ore reserve
development costs March 2006 - - -
Financial year ended - - -
ADJUSTED TOTAL CASH COSTS
June 2006 42.8 289.7 93.9
March 2006 9.8 275.7 96.4
Financial year ended 52.6 1,077.0 378.0
Gold sold - kilograms
June 2006 710 3,622 1,532
March 2006 169 4,176 1,740
Financial year ended 879 15,440 6,916
Gold sold - thousand ounces
June 2006 22.8 116.4 49.3
March 2006 5.4 134.3 55.9
Financial year ended 28.3 496.4 222.4
ADJUSTED TOTAL CASH COSTS
June 2006 60,282 79,983 61.292
- R/kilogram March 2006 57,988 66,020 55,402
Financial year ended 59,841 69,754 54,656
ADJUSTED TOTAL CASH COSTS
June 2006 293 389 298
- US$/oz March 2006 294 334 281
Financial year ended 294 339 266
Note: Users of the restated total cash cost number must bear in mind that
this methodology will result in higher capital expenditure and amortisation.
Operating and financial results
South African Rand Total Mine
Operations
Operating Results
Ore milled/
treated (000 tons)
June 2006 12,651
March 2006 12,738
Financial year ended 49,366
Yield (grams per ton)
June 2006 2.7
March 2006 2.7
Financial year ended 2.7
Gold produced
(kilograms)
June 2006 33,783
March 2006 34,104
Financial year ended 135,240
Gold sold (kilograms)
June 2006 33,875
March 2006 34,104
Financial year ended 135,332
Gold price received
(Rand per kilogram)
June 2006 128,974
March 2006 109,500
Financial year ended 107,918
Total cash costs
(Rand per kilogram)
June 2006 77,187
March 2006 73,378
Financial year to date 73,746
Total production costs
(Rand per kilogram)
June 2006 88,939
March 2006 83,896
Financial year ended 84,450
Operating costs
(Rand per ton)
June 2006 216
March 2006 202
Financial year ended 209
Financial Results
(Rand million)
Revenue
June 2006 4,369.0
March 2006 3,734.4
Financial year ended 14,604.7
Operating costs
June 2006 2,731.5
March 2006 2,573.4
Financial year ended 10,303.9
Gold inventory change
June 2006 (22.7)
March 2006 (26.4)
Financial year ended (58.8)
Operating profit
June 2006 1,660.2
March 2006 1,187.4
Financial year ended 4,359.6
Amortisation
of mining assets
June 2006 393.5
March 2006 357.9
Financial year ended 1,430.4
Net operating profit
June 2006 1,266.7
March 2006 829.5
Financial year ended 2,929.2
Other income/(expense)
June 2006 (20.1)
March 2006 (25.0)
Financial year ended (114.4)
Profit before taxation
June 2006 1,246.6
March 2006 804.5
Financial year ended 2,814.8
Mining and
income taxation
June 2006 424.4
March 2006 202.5
Financial year ended 882.9
- Normal taxation
June 2006 204.5
March 2006 115.1
Financial year ended 500.4
- Deferred taxation
June 2006 219.9
March 2006 87.4
Financial year ended 382.5
Profit before
exceptional items
June 2006 822.2
March 2006 602.0
Financial year ended 1,931.9
Exceptional items
June 2006 0.6
March 2006 22.7
Financial year ended 26.0
Net profit
June 2006 822.8
March 2006 624.7
Financial year ended 1,957.9
June 2006 797.1
Net profit excluding
gains and losses
on financial
instruments and
foreign debt and
exceptional items
March 2006 612.5
Financial year ended 1,929.0
Capital expenditure
June 2006 513.8
March 2006 424.4
Financial year ended 1,644.9
Planned for next
six months to
December 2006 1,532.7
South African Rand South African Operations
Total Driefontein Kloof Beatrix
Operating Results
Ore milled/
treated (000 tons)
June 2006 3,614 1,738 992 884
March 2006 3,585 1,831 849 905
Financial year ended 14,084 6,867 3,666 3,551
Yield (grams per ton)
June 2006 5.8 5.1 7.4 5.2
March 2006 5.6 4.8 7.6 5.3
Financial year ended 5.9 5.2 7.8 5.2
Gold produced
(kilograms)
June 2006 20,803 8,869 7,340 4,594
March 2006 20,106 8,849 6,440 4,817
Financial year ended 82,725 35,755 28,429 18,541
Gold sold (kilograms)
June 2006 20,803 8,869 7,340 4,594
March 2006 20,106 8,849 6,440 4,817
Financial year ended 82,725 35,755 28,429 18,541
Gold price received
(Rand per kilogram)
June 2006 129,164 128,932 129,360 129,299
March 2006 108,813 108,487 109,224 108,864
Financial year ended 107,698 107,384 107,890 108,009
Total cash costs
(Rand per kilogram)
June 2006 82,421 76,423 87,752 85,481
March 2006 81,916 74,280 92,236 82,147
Financial year ended 80,201 73,109 86,581 84,095
Total production costs
(Rand per kilogram)
June 2006 91,218 85,218 97,847 92,207
March 2006 89,993 81,478 101,832 89,807
Financial year ended 88,233 80,663 96,169 90,664
Operating costs
(Rand per ton)
June 2006 491 405 672 459
March 2006 476 372 725 452
Financial year ended 489 395 697 455
Financial Results
(Rand million)
Revenue
June 2006 2,687.0 1,143.5 949.5 594.0
March 2006 2,187.8 960.0 703.4 524.4
Financial year ended 8,909.3 3,839.5 3,067.2 2,002.6
Operating costs
June 2006 1,775.8 703.3 666.7 405.8
March 2006 1,704.9 680.5 615.6 408.8
Financial year ended 6,884.4 2,714.4 2,555.3 1,614.7
Gold inventory change
June 2006 - - - -
March 2006 - - - -
Financial year ended - - - -
Operating profit
June 2006 911.2 440.2 282.8 188.2
March 2006 482.9 279.5 87.8 115.6
Financial year ended 2,024.9 1,125.1 511.9 387.9
Amortisation
of mining assets
June 2006 173.5 75.2 70.0 28.3
March 2006 153.0 60.9 57.7 34.4
Financial year ended 626.8 258.9 256.2 111.7
Net operating profit
June 2006 737.7 365.0 212.8 159.9
March 2006 329.9 218.6 30.1 81.2
Financial year ended 1,398.1 866.2 255.7 276.2
Other income/(expense)
June 2006 (37.0) (11.8) (10.6) (14.6)
March 2006 (29.6) (9.8) (8.5) (11.3)
Financial year ended (137.4) (44.1) (39.7) (53.6)
Profit before taxation
June 2006 700.7 353.2 202.2 145.3
March 2006 300.3 208.8 21.6 69.9
Financial year ended 1,260.7 822.1 216.0 222.6
Mining and
income taxation
June 2006 253.0 119.1 73.7 60.2
March 2006 104.8 63.9 9.5 31.4
Financial year ended 405.6 243.5 66.5 95.6
- Normal taxation
June 2006 88.0 87.8 - 0.2
March 2006 59.8 59.8 - -
Financial year ended 201.7 201.5 - 0.2
- Deferred taxation
June 2006 165.0 31.3 73.7 60.0
March 2006 45.0 4.1 9.5 31.4
Financial year ended 203.9 42.0 66.5 95.4
Profit before
exceptional items
June 2006 447.7 234.1 128.5 85.1
March 2006 195.5 144.9 12.1 38.5
Financial year ended 855.1 578.6 149.5 127.0
Exceptional items
June 2006 4.8 0.1 0.1 4.6
March 2006 23.6 0.8 16.7 6.1
Financial year ended 29.6 1.0 16.8 11.8
Net profit
June 2006 452.5 234.2 128.6 89.7
March 2006 219.1 145.7 28.8 44.6
Financial year ended 884.7 579.6 166.3 138.8
June 2006 449.7 234.2 128.6 86.9
Net profit excluding
gains and losses
on financial
instruments and
foreign debt and
exceptional items
March 2006 204.5 145.1 18.6 40.8
Financial year ended 866.7 579.0 156.1 131.6
Capital expenditure
June 2006 227.7 87.1 66.1 74.5
March 2006 164.3 54.3 45.8 64.2
Financial year ended 694.1 248.7 208.0 237.4
Planned for next
six months to
December 2006 474.6 148.7 194.3 131.6
Operating and financial results
South African Rand
International Operations
Ghana
Total Tarkwa Damang
Operating Results
Ore milled/
treated (000 tons)
June 2006 9,037 5,381 1,302
March 2006 9,153 5,671 1,375
Financial year ended 35,282 21,487 5,328
Yield (grams per ton)
June 2006 1.4 1.0 1.3
March 2006 1.5 1.1 1.4
Financial year ended 1.5 1.0 1.4
Gold produced
(kilograms)
June 2006 12,980 5,475 1,733
March 2006 13,998 5,984 1,929
Financial year ended 52,515 22,060 7,312
Gold sold (kilograms)
June 2006 13,072 5,475 1,733
March 2006 13,998 5,984 1,929
Financial year ended 52,607 22,060 7,312
Gold price received
(Rand per kilogram)
June 2006 128,672 128,858 129,140
March 2006 110,487 110,478 109,850
Financial year ended 108,263 108,200 107,741
Total cash costs
(Rand per kilogram)
June 2006 68,857 66,046 64,686
March 2006 61,116 57,269 67,859
Financial year ended 63,596 60,091 70,077
Total production
costs (Rand per
kilogram)
June 2006 85,312 76,384 68,148
March 2006 75,139 67,614 71,021
Financial year ended 78,501 70,712 73,509
Operating costs
(Rand per ton)
June 2006 106 69 96
March 2006 95 61 90
Financial year ended 97 63 93
Financial Results
(Rand million)
Revenue
June 2006 1,682.0 705.5 223.8
March 2006 1,546.6 661.1 211.9
Financial year ended 5,695.4 2,386.9 787.8
Operating costs
June 2006 955.7 370.1 125.6
March 2006 868.5 344.1 123.4
Financial year ended 3,419.5 1,354.7 496.4
Gold inventory change
June 2006 (22.7) (9.5) (3.9)
March 2006 (26.4) (1.8) 4.0
Financial year ended (58.8) (32.9) 17.7
Operating profit
June 2006 749.0 344.9 102.1
March 2006 704.5 318.8 84.5
Financial year ended 2,334.7 1,065.1 273.7
Amortisation of
mining assets
June 2006 220.0 58.0 6.0
March 2006 204.9 62.6 6.1
Financial year ended 803.6 240.3 25.1
Net operating profit
June 2006 529.0 286.9 96.1
March 2006 499.6 256.2 78.4
Financial year ended 1,531.1 824.8 248.6
Other income/(expense)
June 2006 16.9 1.4 5.0
March 2006 4 .6 (1.2) 0 .6
Financial year ended 23.0 6.0 5.9
Profit before taxation
June 2006 545.9 288.3 101.1
March 2006 504.2 255.0 79.0
Financial year ended 1,554.1 830.8 254.5
Mining and
income taxation
June 2006 171.4 84.2 28.8
March 2006 97.7 12.8 21.9
Financial year ended 477.3 203.3 80.3
- Normal taxation
June 2006 116.5 65.0 19.3
March 2006 55.3 19.6 16.0
Financial year ended 298.7 166.4 53.1
- Deferred taxation
June 2006 54.9 19.2 9.5
March 2006 42.4 (6.8) 5 .9
Financial year ended 178.6 36.9 27.2
Profit before
exceptional items
June 2006 374.5 204.1 72.3
March 2006 406.5 242.2 57.1
Financial year ended 1,076.8 627.5 174.2
Exceptional items
June 2006 (4.2) - -
March 2006 (0.9) - -
Financial year ended (3.6) (1.3) -
Net profit
June 2006 370.3 204.1 72.3
March 2006 405.6 242.2 57.1
Financial year ended 1,073.2 626.2 174.2
June 2006 347.4 199.7 70.1
Net profit excluding
gains and losses
on financial
instruments
and foreign
debt and exceptional
items
March 2006 408.0 242.5 57.8
Financial year ended 1,062.3 625.5 173.4
Capital expenditure
June 2006 286.1 84.1 53.4
March 2006 260.1 100.0 50.5
Financial year ended 950.8 299.7 163.8
Planned for next six
months to
December 2006 1,058.1 398.3 104.8
South African Rand
International Operations
Venezuela Australia #
Choco 10 St Ives Agnew
Operating Results
Ore milled/
treated (000 tons)
June 2006 348 1,682 324
March 2006 106 1,654 347
Financial year ended 454 6,690 1,323
Yield (grams per ton)
June 2006 1.6 2.2 4.7
March 2006 1.6 2.5 5.0
Financial year ended 1.7 2.3 5.2
Gold produced
(kilograms)
June 2006 618 3,622 1,532
March 2006 169 4,176 1,740
Financial year ended 787 15,440 6,916
Gold sold (kilograms)
June 2006 710 3,622 1,532
March 2006 169 4,176 1,740
Financial year ended 879 15,440 6,916
Gold price received
(Rand per kilogram)
June 2006 126,056 128,548 128,982
March 2006 109,467 110,632 110,977
Financial year ended 122,867 108,096 107,533
Total cash costs
(Rand per kilogram)
June 2006 60,282 79,983 61,292
March 2006 57,988 66,020 55,402
Financial year ended 59,841 69,754 54,656
Total production
costs (Rand per
kilogram)
June 2006 78,592 101,494
March 2006 59,172 84,550
Financial year ended 74,858 87,963
Operating costs
(Rand per ton)
June 2006 118 188 315
March 2006 141 177 269
Financial year ended 123 168 296
Financial Results
(Rand million)
Revenue
June 2006 89.5 465.6 197.6
March 2006 18.5 462.0 193.1
Financial year ended 108.0 1,669.0 743.7
Operating costs
June 2006 41.1 316.8 102.1
March 2006 14.9 292.7 93.4
Financial year ended 56.0 1,121.0 391.4
Gold inventory change
June 2006 2.9 (9.7) (2.5)
March 2006 (5.4) (26.6) 3.4
Financial year ended (2.5) (37.5) (3.6)
Operating profit
June 2006 45.5 158.5 98.0
March 2006 9.0 195.9 96.3
Financial year ended 54.5 585.5 355.9
Amortisation of
mining assets
June 2006 13.0 143.0
March 2006 0.2 136.0
Financial year ended 13.2 525.0
Net operating profit
June 2006 32.5 113.5
March 2006 8.8 156.2
Financial year ended 41.3 416.4
Other income/(expense
June 2006 0.3 10.2
March 2006 (1.2) 6 .4
Financial year ended (0.9) 12.0
Profit before taxatio
June 2006 32.8 123.7
March 2006 7.6 162.6
Financial year ended 40.4 428.4
Mining and
income taxation
June 2006 16.1 42.3
March 2006 3.3 59.7
Financial year ended 19.4 174.3
- Normal taxation
June 2006 16.1 16.1
March 2006 3.3 16.4
Financial year ended 19.4 59.8
- Deferred taxation
June 2006 - 26.2
March 2006 - 43.3
Financial year ended - 114.5
Profit before
exceptional items
June 2006 16.7 81.4
March 2006 4.3 102.9
Financial year ended 21.0 254.1
Exceptional items
June 2006 - (4.2)
March 2006 - (0.9)
Financial year ended - (2.3)
Net profit
June 2006 16.7 77.2
March 2006 4.3 102.0
Financial year ended 21.0 251.8
June 2006 16.7 60.9
Net profit excluding
gains and losses
on financial
instruments
and foreign
debt and exceptional
items
March 2006 4.3 103.4
Financial year ended 21.0 242.4
Capital expenditure
June 2006 26.8 90.2 31.6
March 2006 6.5 79.4 23.7
Financial year ended 33.3 336.5 117.7
Planned for next six
months to
December 2006 101.8 335.7 117.5
# As a significant portion of the acquisition price was allocated to tenements
of St Ives and Agnew based on endowment ounces and also as these two
Australian operations areentitled 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
United States Dollars Operations
Operating Results
Ore milled/treated (000 tons)
June 2006 12,651
March 2006 12,738
Financial year ended 49,366
Yield (ounces per ton)
June 2006 0.086
March 2006 0.086
Financial year ended 0.088
Gold produced (000 ounces)
June 2006 1,086.1
March 2006 1,096.5
Financial year ended 4,348.1
Gold sold (000 ounces)
June 2006 1,089.1
March 2006 1,096.5
Financial year ended 4,351.0
Gold price received
(dollars per ounce)
June 2006 628
March 2006 555
Financial year ended 524
Total cash costs
(dollars per ounce)
June 2006 376
March 2006 372
Financial year ended 358
Total production costs
(dollars per ounce)
June 2006 433
March 2006 425
Financial year ended 410
Operating costs
(dollars per ton)
June 2006 34
March 2006 33
Financial year ended 33
Financial Results
($ million)
June 2006
Revenue
June 2006 682.7
March 2006 602.2
Financial year ended 2,282.0
Operating costs
June 2006 426.8
March 2006 416.5
Financial year ended 1,610.0
Gold inventory change
June 2006 (3.6)
March 2006 (4.1)
Financial year ended (9.2)
Operating profit
June 2006 259.5
March 2006 189.8
Financial year ended 681.3
Amortisation of
mining assets
June 2006 61.6
March 2006 57.9
Financial year ended 223.6
Net operating profit
June 2006 198.2
March 2006 132.0
Financial year ended 458.0
Other income/(expenses)
June 2006 (3.2)
March 2006 (4.0)
Financial year ended (17.9)
Profit before taxation
June 2006 195.0
March 2006 127.9
Financial year ended 440.1
Mining and income taxation
June 2006 66.4
March 2006 32.4
Financial year ended 138.1
- Normal taxation
June 2006 32.1
March 2006 18.5
Financial year ended 78.3
- Deferred taxation
June 2006 34.4
March 2006 13.9
Financial year ended 59.8
Profit before
exceptional items
June 2006 128.6
March 2006 95.6
Financial year ended 302.0
Exceptional items
June 2006 0.1
March 2006 3.6
Financial year ended 4.1
Net profit
June 2006 128.7
March 2006 99.1
Financial year ended 306.0
June 2006 124.5
Net profit excluding gains
and losses on financial
instruments and foreign debt
and exceptional items
March 2006 97.2
Financial year ended 301.4
Capital expenditure
($ million)
June 2006 79.8
March 2006 68.9
Financial year ended 257.0
Planned for next
six months to December 2006 206.3
South African Operations
United States Dollars Total Driefontein Kloof Beatrix
Operating Results
Ore milled/treated (000 tons)
June 2006 3,614 1,738 992 884
March 2006 3,585 1,831 849 905
Financial year ended 14,084 6,867 3,666 3,551
Yield (ounces per ton)
June 2006 0.185 0.164 0.238 0.167
March 2006 0.180 0.155 0.244 0.171
Financial year ended 0.189 0.167 0.249 0.168
Gold produced (000 ounces)
June 2006 668.8 285.1 236.0 147.7
March 2006 646.4 284.5 207.1 154.9
Financial year ended 2,659.7 1,149.5 914.0 596.1
Gold sold (000 ounces)
June 2006 668.8 285.1 236.0 147.7
March 2006 646.4 284.5 207.1 154.9
Financial year ended 2,659.7 1,149.5 914.0 596.1
Gold price received
(dollars per ounce)
June 2006 629 628 630 629
March 2006 551 550 553 551
Financial year ended 523 522 524 525
Total cash costs
(dollars per ounce)
June 2006 401 372 427 416
March 2006 415 376 467 416
Financial year ended 390 355 421 409
Total production costs
(dollars per ounce)
June 2006 444 415 476 449
March 2006 456 413 516 455
Financial year ended 429 392 467 441
Operating costs
(dollars per ton)
June 2006 77 63 105 72
March 2006 77 61 118 74
Financial year ended 76 62 109 71
Financial Results
($ million)
June 2006
Revenue
June 2006 419.8 178.7 148.4 92.8
March 2006 353.4 155.0 114.0 84.5
Financial year ended 1,392.1 599.9 479.3 312.9
Operating costs
June 2006 277.5 109.9 104.2 63.4
March 2006 276.2 110.2 99.8 66.2
Financial year ended 1,075.7 424.1 399.3 252.3
Gold inventory change
June 2006 - - - -
March 2006 - - - -
Financial year ended - - - -
Operating profit
June 2006 142.4 68.8 44.2 29.4
March 2006 77.3 44.8 14.1 18.3
Financial year ended 316.4 175.8 80.0 60.6
Amortisation of
mining assets
June 2006 27.1 11.8 10.9 4.4
March 2006 24.8 9.9 9.4 5.5
Financial year ended 97.9 40.5 40.0 17.5
Net operating profit
June 2006 115.3 57.0 33.3 25.0
March 2006 52.5 35.0 4.7 12.8
Financial year ended 218.5 135.3 40.0 43.2
Other income/(expenses)
June 2006 (5.8) (1.8) (1.7) (2.3)
March 2006 (4.8) (1.6) (1.4) (1.8)
Financial year ended (21.5) (6.9) (6.2) (8.4)
Profit before taxation
June 2006 109.5 55.2 31.6 22.7
March 2006 47.7 33.4 3.4 10.9
Financial year ended 197.0 128.5 33.8 34.8
Mining and income taxation
June 2006 39.5 18.6 11.5 9.4
March 2006 16.5 10.2 1.4 4.9
Financial year ended 63.4 38.0 10.4 14.9
- Normal taxation
June 2006 13.8 13.7 - -
March 2006 9.5 9.5 - -
Financial year ended 31.5 31.5 - -
- Deferred taxation
June 2006 25.8 4.9 11.5 9.4
March 2006 7.0 0.7 1.4 4.9
Financial year ended 31.9 6.6 10.4 14.9
Profit before
exceptional items
June 2006 70.0 36.6 20.1 13.3
March 2006 31.2 23.2 1.9 6.0
Financial year ended 133.6 90.4 23.4 19.8
Exceptional items
June 2006 0.8 - - 0.7
March 2006 3.7 0.1 2.6 1.0
Financial year ended 4.6 0.2 2.6 1.8
Net profit
June 2006 70.7 36.6 20.1 14.0
March 2006 34.8 23.3 4.5 7.0
Financial year ended 138.2 90.6 26.0 21.7
June 2006 70.2 36.5 20.1 13.6
Net profit excluding gains
and losses on financial
instruments and foreign debt
and exceptional items
March 2006 32.6 23.2 2.9 6.4
Financial year ended 135.4 90.5 24.4 20.6
Capital expenditure
($ million)
June 2006 35.1 13.1 10.3 11.6
March 2006 27.0 9.3 7.4 10.3
Financial year ended 108.5 38.9 32.5 37.1
Planned for next
six months to December 2006 63.9 20.0 26.2 17.7
Average exchange rates are US$1 = R6.39 and US$1 = R6.14 for the June 2006
and March 2006 quarters respectively.
Figures may not add as they are rounded independently.
Operating and financial results
United States Dollars
Ghana
Total Tarkwa Damang
Operating Results
Ore milled/treated
(000 tons)
June 2006 9,037 5,381 1,302
March 2006 9,153 5,671 1,375
Financial year ended 35,282 21,487 5,328
Yield (ounces per ton)
June 2006 0.046 0.033 0.043
March 2006 0.049 0.034 0.045
Financial year ended 0.048 0.033 0.044
Gold produced
(000 ounces)
June 2006 417.3 176.0 55.7
March 2006 450.0 192.4 62.0
Financial year ended 1,688.4 709.2 235.1
Gold sold
(000 ounces)
June 2006 420.3 176.0 55.7
March 2006 450.0 192.4 62.0
Financial year ended 1,691.4 709.2 235.1
Gold price received
(dollars per ounce)
June 2006 626 627 629
March 2006 560 560 556
Financial year ended 526 526 524
Total cash costs
(dollars per ounce)
June 2006 335 321 315
March 2006 310 290 344
Financial year ended 309 292 341
Total production
costs (dollars
per ounce)
June 2006 415 372 332
March 2006 381 343 360
Financial year ended 362 344 357
Operating costs
(dollars per ton)
June 2006 17 11 15
March 2006 15 10 15
Financial year ended 15 10 15
Financial Results
($ million)
Revenue
June 2006 263.0 110.2 35.0
March 2006 248.8 106.2 34.1
Financial year ended 890.1 373.0 123.1
Operating costs
June 2006 149.3 57.8 19.6
March 2006 140.3 55.6 20.0
Financial year ended 534.3 211.7 77.6
Gold inventory change
June 2006 (3.6) (1.5) (0.6)
March 2006 (4.1) (0.3) 0 .7
Financial year ended (9.2) (5.1) 2.8
Operating profit
June 2006 117.2 53.9 16.0
March 2006 112.6 51.0 13.5
Financial year ended 364.9 166.4 42.8
Amortisation of
mining assets
June 2006 34.5 9.1 0.9
March 2006 33.1 10.1 1.0
Financial year ended 125.6 37.5 3.9
Net operating profit
June 2006 83.0 44.8 15.0
March 2006 79.5 40.8 12.5
Financial year ended 239.5 128.9 38.8
Other income/(expenses)
June 2006 2.5 0.2 0.8
March 2006 0.8 (0.2) 0.1
Financial year ended 3.6 0.9 0.9
Profit before taxation
June 2006 85.5 45.0 15.8
March 2006 80.3 40.7 12.6
Financial year ended 243.1 129.8 39.8
Mining and
income taxation
June 2006 26.9 13.2 4.5
March 2006 15.9 2.3 3.5
Financial year ended 74.7 31.8 12.5
- Normal taxation
June 2006 18.3 10.2 3.0
March 2006 9.0 3.3 2.6
Financial year ended 46.8 26.0 8.3
- Deferred taxation
June 2006 8.6 3.0 1.5
March 2006 6.9 (1.0) 1.0
Financial year ended 27.9 5.8 4.3
Profit before
exceptional items
June 2006 58.6 31.9 11.3
March 2006 64.4 38.4 9.1
Financial year ended 168.4 98.0 27.2
Exceptional items
June 2006 (0.7) - -
March 2006 (0.1) - -
Financial year ended (0.6) (0.2) -
Net profit
June 2006 57.9 31.9 11.3
March 2006 64.3 38.4 9.1
Financial year ended 167.8 97.8 27.2
Net profit
excluding gains and
losses on financial
instruments and
foreign debt, and
exceptional items
June 2006 54.3 31.2 11.0
March 2006 64.7 38.4 9.2
Financial year ended 166.0 97.7 27.1
Capital expenditure
June 2006 44.7 13.1 8.3
March 2006 41.8 16.0 8.1
Financial year ended 148.6 46.8 25.6
Planned for next
six months to
December 2006 142.4 53.6 14.1
International Operations
United States Dollars
Venezuela Australia #
Choco 10 St Ives Agnew
Operating Results
Ore milled/treated
(000 tons)
June 2006 348 1,682 324
March 2006 106 1,654 347
Financial year ended 454 6,690 1,323
Yield (ounces per ton)
June 2006 0.057 0.069 0.152
March 2006 0.051 0.081 0.161
Financial year ended 0.056 0.074 0.168
Gold produced
(000 ounces)
June 2006 19.9 116.4 49.3
March 2006 5.4 134.3 55.9
Financial year ended 25.3 496.4 222.4
Gold sold
(000 ounces)
June 2006 22.8 116.4 49.3
March 2006 5.4 134.3 55.9
Financial year ended 28.3 496.4 222.4
Gold price received
(dollars per ounce)
June 2006 614 626 628
March 2006 555 560 562
Financial year ended 604 525 523
Total cash costs
(dollars per ounce)
June 2006 293 389 298
March 2006 294 334 281
Financial year ended 294 339 266
Total production
costs (dollars
per ounce)
June 2006 383 494
March 2006 300 428
Financial year ended 367 427
Operating costs
(dollars per ton)
June 2006 18 29 49
March 2006 23 29 44
Financial year ended 20 26 46
Financial Results
($ million)
Revenue
June 2006 14.0 72.8 31.0
March 2006 3.0 74.3 31.1
Financial year ended 17.1 260.8 116.2
Operating costs
June 2006 6.4 49.5 16.0
March 2006 2.4 47.2 15.1
Financial year ended 8.8 175.2 61.1
Gold inventory change
June 2006 0.5 (1.5) (0.4)
March 2006 (0.9) (4.2) 0 .6
Financial year ended (0.4) (5.9) (0.5)
Operating profit
June 2006 7.1 24.8 15.4
March 2006 1.5 31.3 15.4
Financial year ended 8.6 91.5 55.6
Amortisation of
mining assets
June 2006 2.1 22.3
March 2006 - 22.0
Financial year ended 2.1 82.0
Net operating profit
June 2006 5.1 17.8
March 2006 1.4 24.7
Financial year ended 6.5 65.1
Other income/(expenses)
June 2006 0.1 1.5
March 2006 (0.2) 1.1
Financial year ended (0.1) 1.9
Profit before taxation
June 2006 5.1 19.3
March 2006 1.2 25.8
Financial year ended 6.4 66.9
Mining and
income taxation
June 2006 2.6 6.6
March 2006 0.5 9.5
Financial year ended 3.1 27.2
- Normal taxation
June 2006 2.6 2.5
March 2006 0.5 2.6
Financial year ended 3.1 9.3
- Deferred taxation
June 2006 - 4.1
March 2006 - 6.9
Financial year ended - 17.9
Profit before
exceptional items
June 2006 2.6 12.7
March 2006 0.7 16.3
Financial year ended 3.3 39.7
Exceptional items
June 2006 - (0.7)
March 2006 - (0.1)
Financial year ended - (0.4)
Net profit
June 2006 2.6 12.1
March 2006 0.7 16.1
Financial year ended 3.3 39.3
Net profit
excluding gains and
losses on financial
instruments and
foreign debt, and
exceptional items
June 2006 2.6 9.5
March 2006 0.7 16.4
Financial year ended 3.3 37.9
Capital expenditure
June 2006 4.2 14.1 4.9
March 2006 1.0 12.9 3.9
Financial year ended 5.2 52.6 18.4
Planned for next
six months to
December 2006 13.7 45.2 15.8
United States Dollars Australian Dollars
Australia #
St Ives Agnew
Operating Results
Ore milled/treated
(000 tons)
June 2006 1,682 324
March 2006 1,654 347
Financial year ended 6,690 1,323
Yield (ounces per ton)
June 2006 0.069 0.152
March 2006 0.081 0.161
Financial year ended 0.074 0.168
Gold produced
(000 ounces)
June 2006 116.4 49.3
March 2006 134.3 55.9
Financial year ended 496.4 222.4
Gold sold
(000 ounces)
June 2006 116.4 49.3
March 2006 134.3 55.9
Financial year ended 496.4 222.4
Gold price received
(dollars per ounce)
June 2006 838 841
March 2006 755 757
Financial year ended 702 698
Total cash costs
(dollars per ounce)
June 2006 522 400
March 2006 450 378
Financial year ended 453 355
Total production
costs (dollars
per ounce)
June 2006 662
March 2006 577
Financial year ended 571
Operating costs
(dollars per ton)
June 2006 39 66
March 2006 39 59
Financial year ended 35 62
Financial Results
($ million)
Revenue
June 2006 97.7 41.5
March 2006 100.0 42.0
Financial year ended 348.4 155.3
Operating costs
June 2006 66.5 21.4
March 2006 63.6 20.5
Financial year ended 234.0 81.7
Gold inventory change
June 2006 (2.0) (0.5)
March 2006 (5.5) 0 .7
Financial year ended (7.8) (0.8)
Operating profit
June 2006 33.3 20.6
March 2006 42.0 20.9
Financial year ended 122.2 74.3
Amortisation of
mining assets
June 2006 30.0
March 2006 29.6
Financial year ended 109.6
Net operating profit
June 2006 23.8
March 2006 33.3
Financial year ended 86.9
Other income/(expenses)
June 2006 2.1
March 2006 1.3
Financial year ended 2.5
Profit before taxation
June 2006 26.0
March 2006 34.6
Financial year ended 89.4
Mining and
income taxation
June 2006 8.9
March 2006 12.8
Financial year ended 36.4
- Normal taxation
June 2006 3.4
March 2006 3.6
Financial year ended 12.5
- Deferred taxation
June 2006 5.5
March 2006 9.2
Financial year ended 23.9
Profit before
exceptional items
June 2006 17.1
March 2006 21.8
Financial year ended 53.0
Exceptional items
June 2006 (0.9)
March 2006 (0.2)
Financial year ended (0.5)
Net profit
June 2006 16.2
March 2006 21.6
Financial year ended 52.6
Net profit
excluding gains and
losses on financial
instruments and
foreign debt, and
exceptional items
June 2006 12.8
March 2006 21.9
Financial year ended 50.6
Capital expenditure
June 2006 18.9 6.6
March 2006 17.4 5.3
Financial year ended 70.3 24.6
Planned for next
six months to
December 2006 61.7 21.6
Average exchange rates are US$1 = R6.39 US$1 = R6.14 for the June 2006 and
March 2006 quarters respectively. The Australian dollar exchange rates are
AUS$1 = R4.77 and AUS$1 = R4.56 for the June 2006 and March 2006 quarters
respectively.
Average rates for F2006 are US$1 = R6.40 and AUS$1 = R4.79. The rate used for
Choco 10 is US$1 = R6.33 as this was the average rate from 1 March 2006, the
acquisition date.
# 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
Ore milled / Operations
treated (000 ton)
- underground
June 2006 3,204
March 2006 3,134
Financial year ended 12,831
- surface
June 2006 9,447
March 2006 9,604
Financial year ended 36,535
- total
June 2006 12,651
March 2006 12,738
Financial year ended 49,366
Yield (grams per ton)
- underground
June 2006 7.1
March 2006 7.0
Financial year ended 7.1
- surface
June 2006 1.2
March 2006 1.3
Financial year ended 1.2
- combined
June 2006 2.7
March 2006 2.7
Financial year ended 2.7
Gold produced
(kilograms)
- underground
June 2006 22,718
March 2006 21,798
Financial year ended 90,657
- surface
June 2006 11,065
March 2006 12,306
Financial year ended 44,583
- total
June 2006 33,783
March 2006 34,104
Financial year ended 135,240
Operating costs
(Rand per ton)
- underground
June 2006 595
March 2006 581
Financial year ended 576
- surface
June 2006 87
March 2006 78
Financial year ended 80
- total
June 2006 216
March 2006 202
Financial year ended 209
South African Operations
Total Driefontein Kloof Beatrix
Ore milled /
treated (000 ton)
- underground
June 2006 2,634 924 826 884
March 2006 2,563 925 733 905
Financial year ended 10,624 3,867 3,206 3,551
- surface
June 2006 980 814 166 -
March 2006 1,022 906 116 -
Financial year ended 3,460 3,000 460 -
- total
June 2006 3,614 1,738 992 884
March 2006 3,585 1,831 849 905
Financial year ended 14,084 6,867 3,666 3,551
Yield (grams per ton)
- underground
June 2006 7.5 8.7 8.7 5.2
March 2006 7.2 7.9 8.6 5.3
Financial year ended 7.3 8.1 8.7 5.2
- surface
June 2006 1.0 1.0 0.9 -
March 2006 1.6 1.7 0.9 -
Financial year ended 1.4 1.4 1.1 -
- combined
June 2006 5.8 5.1 7.4 5.2
March 2006 5.6 4.8 7.6 5.3
Financial year ended 5.9 5.2 7.8 5.2
Gold produced
(kilograms)
- underground
June 2006 19,825 8,044 7,187 4,594
March 2006 18,449 7,302 6,330 4,817
Financial year ended 77,897 31,441 27,915 18,541
- surface
June 2006 978 825 153 -
March 2006 1,657 1,547 110 -
Financial year ended 4,828 4,314 514 -
- total
June 2006 20,803 8,869 7,340 4,594
March 2006 20,106 8,849 6,440 4,817
Financial year ended 82,725 35,755 28,429 18,541
Operating costs
(Rand per ton)
- underground
June 2006 655 710 802 459
March 2006 639 674 827 452
Financial year ended 628 655 788 455
- surface
June 2006 52 58 24 -
March 2006 65 63 79 -
Financial year ended 60 60 61 -
- total
June 2006 491 405 672 459
March 2006 476 372 725 452
Financial year ended 489 395 697 455
International Operations
Ghana
Total Tarkwa Damang
Ore milled /
treated (000 ton)
- underground
June 2006 570 - -
March 2006 571 - -
Financial year ended 2,207 - -
- surface
June 2006 8,467 5,381 1,302
March 2006 8,582 5,671 1,375
Financial year ended 33,075 21,487 5,328
- total
June 2006 9,037 5,381 1,302
March 2006 9,153 5,671 1,375
Financial year ended 35,282 21,487 5,328
Yield (grams per ton)
- underground
June 2006 5.1 - -
March 2006 5.9 - -
Financial year ended 5.8 - -
- surface
June 2006 1.2 1.0 1.3
March 2006 1.2 1.1 1.4
Financial year ended 1.2 1.0 1.4
- combined
June 2006 1.4 1.0 1.3
March 2006 1.5 1.1 1.4
Financial year ended 1.5 1.0 1.4
Gold produced
(kilograms)
- underground
June 2006 2,893 - -
March 2006 3,349 - -
Financial year ended 12,760 - -
- surface
June 2006 10,087 5,475 1,733
March 2006 10,649 5,984 1,929
Financial year ended 39,755 22,060 7,312
- total
June 2006 12,980 5,475 1,733
March 2006 13,998 5,984 1,929
Financial year ended 52,515 22,060 7,312
Operating costs
(Rand per ton)
- underground
June 2006 316 - -
March 2006 321 - -
Financial year ended 323 - -
- surface
June 2006 92 69 96
March 2006 80 61 90
Financial year ended 82 63 93
- total
June 2006 106 69 96
March 2006 95 61 90
Financial year ended 97 63 93
International Operations
Operating Results Venezuela Australia
Choco 10 St Ives Agnew
Ore milled /
treated (000 ton)
- underground
June 2006 - 458 112
March 2006 - 455 116
Financial year ended - 1,752 455
- surface
June 2006 348 1,224 212
March 2006 106 1,199 231
Financial year ended 454 4,938 868
- total
June 2006 348 1,682 324
March 2006 106 1,654 347
Financial year ended 454 6,690 1,323
Yield (grams per ton)
- underground
June 2006 - 3.7 10.6
March 2006 - 4.4 11.5
Financial year ended - 4.3 11.4
- surface
June 2006 1.8 1.6 1.6
March 2006 1.6 1.8 1.7
Financial year ended 1.7 1.6 2.0
- combined
June 2006 1.8 2.2 4.7
March 2006 1.6 2.5 5.0
Financial year ended 1.7 2.3 5.2
Gold produced
(kilograms)
- underground
June 2006 - 1,702 1,191
March 2006 - 2,011 1,338
Financial year ended - 7,580 5,180
- surface
June 2006 618 1,920 341
March 2006 169 2,165 402
Financial year ended 787 7,860 1,736
- total
June 2006 618 3,622 1,532
March 2006 169 4,176 1,740
Financial year ended 787 15,440 6,916
Operating costs
(Rand per ton)
- underground
June 2006 - 300 379
March 2006 - 307 377
Financial year ended - 307 382
- surface
June 2006 118 146 282
March 2006 141 128 215
Financial year ended 123 118 251
- total
June 2006 118 188 315
March 2006 141 177 269
Financial year ended 123 168 296
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 June 2006
quarter
Carbon
Reef Leader Main VCR
Advanced (m) 4,796 713 1,595
Advanced on reef (m) 887 243 121
Sampled (m) 768 240 168
Channel width (cm) 55 57 27
Average value - (g/t) 35.6 5.3 23.1
- (cm.g/t) 1,965 299 625
March 2006
quarter
Carbon
Reef Leader Main VCR
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
Year ended
F2006
Carbon
Reef Leader Main VCR
Advanced (m) 19,180 2,621 5,625
Advanced on reef (m) 2,747 910 517
Sampled (m) 2,598 798 435
Channel width (cm) 91 36 61
Average value - (g/t) 18.5 14.4 30.0
- (cm.g/t) 1,677 517 1,839
Kloof June 2006
quarter
Reef Kloof Main VCR
Advanced (m) 207 1,258 6,718
Advanced on reef (m) 121 404 1,503
Sampled (m) 126 318 1,318
Channel width (cm) 142 145 80
Average value - (g/t) 4.4 7.5 23.1
- (cm.g/t) 619 1,091 1,852
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
Year ended
F2006
Reef Kloof Main VCR
Advanced (m) 881 5,295 24,239
Advanced on reef (m) 524 1,322 5,472
Sampled (m) 465 1,340 5,131
Channel width (cm) 128 118 89
Average value - (g/t) 6.8 9.2 23.2
- (cm.g/t) 865 1,084 2,058
Beatrix June 2006
quarter
Reef Beatrix Kalkoenkrans
Advanced (m) 7,737 2,304
Advanced on reef (m) 1,224 94
Sampled (m) 1,182 114
Channel width (cm) 90 131
Average value - (g/t) 11.2 9.9
- (cm.g/t) 1,007 1,294
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
Year ended
F2006
Reef Beatrix Kalkoenkrans
Advanced (m) 27,731 8,133
Advanced on reef (m) 5,809 1,110
Sampled (m) 5,463 1,092
Channel width (cm) 81 147
Average value - (g/t) 13.3 9.5
- (cm.g/t) 1,081 1,404
(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
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) 484 063
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.
Directors
A J Wright (Chairman) K Ansah#
J M McMahon * P J Ryan
I D Cockerill * (Chief Executive Officer) G J Gerwel
D M J Ncube T M G Sexwale
N J Holland * (Chief Financial Officer) A Grigorian
R L Pennant-Rea * C I von Christierson
J G Hopwood
# Ghanaian * British Russian
Date: 03/08/2006 08:02:49 AM Produced by the JSE SENS Department
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