GFI - Gold Fields Terminates Western Areas Hedge B
GFI
GOGOF
GFI - Gold Fields Terminates Western Areas Hedge Book - Media Release
Gold Fields Limited
(Reg. No.1968/004880/06)
(Incorporated in the Republic of South Africa)
JSE Share Code: GFI
NYSE Share Code: GFI
ISIN Code: ZAE000018123
("Gold Fields")
GOLD FIELDS TERMINATES
WESTERN AREAS HEDGE BOOK
Johannesburg, 25 January 2007: Gold Fields Limited (Gold Fields) (NYSE,
JSE, DIFX: GFI) is pleased to announce that the Western Areas hedge book
has been terminated.
The hedge book was terminated at an average spot gold price of US$622.14/oz
and a total cost of US$528 million.
Gold Fields inherited the Western Areas hedge book when it took control of
Western Areas in December 2006. The hedge book had a maturity profile from
December 2006 to December 2014 and consisted of options, with a delta of
1,005,000 gold ounces, and deferred premiums. At the end of the last
quarter, on 29 December 2006, the marked to market value of the hedge book
was US$383 million, with a deferred premium of US$ 157 million, for a total
of US$540 million. This compares to the total cost of termination of US$528
referred to above.
Ian Cockerill, Chief Executive Officer of Gold Fields said:
"We terminated the Western Areas hedge book because we believe in gold. "
"The hedge book was significantly under water and was a crippling liability
to the South Deep mine. Now we can bring the asset to account in a
transparent manner."
"Gold Fields is of the view that the price of gold remains firmly in a long-
term upward trend and, with that outlook, it does not make any sense
whatsoever to be hedged."
"It also ensures that Gold Fields remains fully transparent to investors,
and that its balance sheet remains simple to understand."
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Date: 25/01/2007 10:02:20 Produced by the JSE SENS Department.
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