| Thu 25 Jan 2007, 10:00 | | GFI - Gold Fields Limited - Quarter ended 31 Decem |
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GFI
GOGOF
GFI - Gold Fields Limited - Quarter ended 31 December 2006
Gold Fields Limited
Incorporated in the Republic of South Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN: ZAE000018123
Operating profit maintained at R2 billion (US$270 million)
generating bottom line earnings of
R767 million (US$104 million)
QUARTER ENDED 31 DECEMBER 2006
News release Q2 F2007 results
- Unaudited -
we deliver
JOHANNESBURG. 25 January 2007 - Gold Fields Limited (NYSE & JSE: GFI) today
announced net earnings for the December 2006 quarter of R767 million compared
with R698 million in the September 2006 quarter and R284 million for the
December quarter of 2005. In US dollar terms net earnings for the December 2006
quarter were US$104 million compared with US$98 million in the September 2006
quarter and US$44 million for the December quarter of 2005. Net earnings
excluding gains and losses on financial instruments and foreign debt net of
cash and exceptional items were R564 million (US$76 million) for the December
2006 quarter compared with R702 million (US$99 million) for the September 2006
quarter.
December 2006 quarter highlights:
Attributable gold production increased by 10,000 ounces to 1,015,000 ounces;
Acquisition of Barrick Gold Corporation`s 50 per cent interest in South Deep
completed - effective date 1 December 2006. Financed by bridging finance of
R8.6 billion (US$1.2 billion) and the issue of 18,701,944 Gold Fields shares
Worth R2.3 billion (US$325 million);
As at 18 January 2007, Gold Fields had received acceptances in respect of
approximately 95.6 per cent of the issued share capital of Western Areas.
This was financed by the issue of 43,920,023 Gold Fields shares to
shareholders of Western Areas. Step is being taken to increase this to
100 per cent with the "squeeze out provisions" of the Companies Act;
South African Government formally approved the conversion of Driefontein,
Kloof and Beatrix old order mining licenses into new order mining licenses;
Tarkwa announced US$175 million (R1.25 billion) mill and heap leach expansion
projects;
Interim dividend declared of 90 SA cents per share payable on
19 February 2007.
Ian Cockerill, Chief Executive Officer of Gold Fields, said:
"Overall the Group`s performance for the December quarter was steady with
production being largely as expected with the exception of Kloof which had a
disappointing quarter. Given the cost escalations being experienced in
the mining industry, our efforts in controlling costs in this challenging
environment are satisfying.
The two significant achievements during the quarter under review have been the
conversion of the mining rights for all three of our South African operations
and our acquisition of the South Deep Gold Mine. While both of these
achievements are cornerstones for the future of our company in South Africa,
much work remains to be done. While our new order mining rights have now been
approved, transformation is an ongoing imperative and Gold Fields is committed
to achieving the targets which it has set itself in this regard.
The integration of South Deep into Gold Fields is of the highest priority. We
are analyzing the existing South Deep mine plan and feasibility study, and will
be ramping up the production profile of this mine, to achieve its very
significant potential."
Stock data
Number of shares in issue
- at end December 2006 551,527,036
- average for the quarter 517,356,586
Free Float 100%
ADR Ratio 1:1
Bloomberg / Reuters GFISJ / GFLJ.J
JSE Limited - (GFI)
Range - Quarter ZAR119.40 - ZAR143.25
Average Volume - Quarter 2,200,535 shares / day
NYSE - (GFI)
Range - Quarter US$16.37 - US$19.48
Average Volume - Quarter 1,823,989 shares / day
Salient features
South African Rand
Six months to Quarter
Restated
Restated
Dec Dec Dec Sept Dec
2005 2006 2005 2006 2006
Gold produced* 63,234 62,842 32,342 31,262 31,580 kg
Total cash
costs 66,619 81,793 66,054 79,862 83,707 R/kg
Tons milled 23,977 25,967 12,089 12,858 3,109 000
Revenue 96,526 143,265 101,184 142,035 144,485 R/kg
Operating costs 193 221 194 215 227 R/ton
Operating
profit 1,888 3,956 1,150 1,987 1,969 Rm
Operating
margin 29 41 33 42 41 %
349 1,465 284 698 767 Rm
Net earnings
71 289 58 141 148 SA c.p.s.
345 1,454 283 692 762 Rm
Headline
earnings
70 287 57 140 147 SA c.p.s.
Net earnings 366 1,265 297 702 564 Rm
excluding
gains and losses
on financial
instruments and
foreign debt
net of 74 250 60 142 108 SA c.p.s.
cash and
exceptional
items
Salient features
United States Dollars
Quarter Six months to
Restated
Restated
Dec Sept Dec Dec Dec
2006 2006 2005 2006 2005
Gold
produced* oz (000) 1,015 1,005 1,040 2,020 2,033
Total cash
costs $/oz 353 350 315 351 318
Tons milled 000 13,109 12,858 12,089 25,967 23,977
Revenue $/oz 609 622 482 615 460
Operating
costs $/ton 31 30 30 31 30
Operating
profit $m 267 280 176 546 290
Operating
margin % 41 42 33 41 29
$m 104 98 44 202 53
Net
earnings
US c.p.s. 20 20 9 40 11
$m 103 98 43 201 53
Headline
earnings
US c.p.s. 20 20 9 40 11
Net
earnings $m 76 99 46 175 56
excluding
gains and
losses on
financial
instruments
and foreign
debt net
of US c.p.s. 15 20 9 35 11
cash and
exceptional
items
* Attributable - All companies wholly owned except for Ghana (71.1%), Choco 10
(95%) and South Deep (91.95%).
Change in accounting policy - Ore Reserve Development (ORD) costs are
capitalised and amortised.
Health and safety
We regret to report three fatal injuries during the December quarter all of
which occurred at the South African operations. Two of the accidents were
tramming related and the third a fall of ground. The fatal injury frequency
rate for the December quarter was 0.08 per million man hours worked, an
improvement on the previous quarter`s figure of 0.25. The lost time injury
frequency rate improved from 13.15 to 10.37, the serious injury frequency rate
improved from 7.1 to 5.4 and the days lost frequency rate improved from 414 to
325 per million man hours worked.
Management is continuing to actively seek improvements to meet the Ontario
safety standards on all of our mines. Behavioural based interventions continue
at all operations in the group.
Financial review
Quarter ended 31 December 2006 compared
with quarter ended 30 September 2006
Revenue
Attributable gold production increased by 1 per cent from 1,005,000 ounces in
the September 2006 quarter to 1,015,000 ounces in the December quarter.
Attributable production at the South African operations increased marginally
from 649,000 ounces to 652,000 ounces in the December quarter. Attributable
production at the international operations increased 2 per cent from 356,000
ounces to 363,000 ounces.
The marginal increase of gold production at the South African operations over
the previous quarter was primarily due to the inclusion of South Deep, which
produced 24,500 attributable ounces as from the effective date of acquisition
of 1 December 2006. Production at Driefontein decreased as a result of lower
underground tonnages driven by re-planning at 4 shaft where volumes have been
reduced by 40 per cent. Gold production at Kloof decreased on the back of lower
yields caused by a lower mine call factor. Beatrix`s gold production was
consistent quarter on quarter, with lower volumes offset by higher yields.
At the international operations, all mines had an increase in gold production,
other than the Agnew mine in Australia. Gold production at Tarkwa was higher
than the September quarter due to record throughput and higher CIL yields.
Damang`s gold production increased on the back of increased fresh ore tonnages
from the Damang and Juno 2 South West (J2SW) open pits. Choco 10 delivered
increased production, but strike action early in December, a SAG mill shutdown
and water shortages all adversely affected production. Water shortages will
continue into the coming quarter and the ongoing strategy of reducing reliance
on rain water is being advanced. At St Ives the marginal increase in gold
production came from increased throughput and yields from the Lefroy mill and
improvements from the heap leach facility. At Agnew, gold production decreased
by 10 per cent for the quarter as a result of a 15 per cent reduction in
underground volumes. Underground volumes were affected by restricted access due
to poor ground conditions and the late commissioning of the paste fill plant
which affected fill placement. This was partly offset by increased volumes
from Songvang.
The average quarterly US dollar gold price decreased from US$622 per ounce in
the September quarter to US$609 per ounce this quarter, a 2 per cent decrease.
The average rand/US dollar exchange rate weakened by 4 per cent quarter on
quarter, averaging R7.38, compared with R7.10 in the September quarter. As a
result of the weaker rand, the rand gold price increased from R142,035 per
kilogram to R144,485 per kilogram, a 2 per cent improvement.
The increase in the rand gold price achieved and higher production resulted in
revenue increasing in rand terms from R4,732 million (US$667 million) to R4,854
million (US$658 million) quarter on quarter.
Operating costs
During financial 2006 a pro-forma total cash cost for the South African
operations was provided in addition to the actual disclosed total cash cost.
This pro-forma cash cost was calculated on the basis that Ore Reserve
Development (ORD) was, like our peers, capitalised to the Balance Sheet. As
from 1 July 2006 the Group accounting policy has changed; ORD is now and has
retrospectively been capitalised, with the resultant assets being amortised on
a units of production basis - see page 10 for further details. As a result, all
prior year and quarterly results in this report have been restated in line with
this policy.
Operating costs for December 2006, amounted to R2,975 million (US$403 million)
compared with R2,764 million (US$389 million) in the September quarter, an
increase of 8 per cent. The increase at the South African operations amounted
to 9 per cent, from R1,644 million (US$232 million) to R1,795 million (US$244
million). Of the R151 million (US$12 million) increase, R113 million (US$16
million) is due to the inclusion of South Deep as from 1 December 2006. The
increase at the remaining South African operations amounted to R38 million or 2
per cent quarter on quarter. Driefontein increased by R11 million due (US$2
million) to additional equipping and opening-up, together with additional
secondary support in haulages. Kloof increased by R14 million (US$2 million)
due to increased volumes mined and processed. Beatrix also increased by R14
million (US$2 million) due to additional equipping and maintenance, together
with additional shifts worked to reduce the impact of the Christmas break.
Costs at the international operations, including gold-in-process (GIP)
movements, amounted to R1,112 million (US$151 million), compared with R1,101
million (US$155 million) incurred in the September quarter. In dollar terms
this is a 3 per cent decrease in costs despite the increase in gold production.
In dollar terms, including GIP, costs at Tarkwa decreased reflecting an
increase in GIP inventory partly offset by the cost of on-mine power generation
in line with the national load shedding requirements, included for the full
quarter compared with only one month`s power costs included in the September
quarter. Costs at Tarkwa were also impacted by an increase in fleet maintenance
costs as forecast. At Damang, operating costs increased due to the additional
power costs and increased production from the pits. Operating costs at Choco 10
increased as a result of the increased production. At St Ives, operating costs
in Australian dollar terms including GIP, decreased by 10 per cent reflecting a
decrease in the waste normalisation charge following completion of mining at
the Mars and Agamemnon open pits early in the December quarter. Waste is
accounted for over the life of a pit on a per unit ounce rate basis. Agnew
reported similar costs quarter on quarter.
Effect of capitalising Ore Reserve Development (ORD) on unit costs Ore Reserve
Development has been capitalised in the December and September 2006 quarter`s
results and retrospectively in the comparative results in this report. This
brings its accounting treatment in line with our peers and is the preferred
methodology for accounting for ORD in the industry. The impact of the
capitalisation is given in the tables at the bottom of page 16 (impact on total
cash costs) and page 21 (impact on cost per ton milled).
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 R1,969 million (US$267
million). This is 1 per cent below the R1,987 million (US$280 million) achieved
in the September quarter. The Group operating margin was virtually unchanged at
41 per cent. The margin at the South African operations decreased from 43 per
cent to 39 per cent, while the margin at the international operations increased
from 41 per cent to 43 per cent, in line with the lower costs and increased
production.
Amortisation
Amortisation increased from R681 million (US$96 million) in the September
quarter to R745 million (US$101 million) in the December quarter. There was a
marginal increase at the International operations in dollar terms (R32 million
in rand terms). The balance of R32 million is at the South African operations
with R9 million of this at South Deep for the month of December.
Other
Net interest and investment income decreased from an income of R17 million
(US$2 million) in the September quarter to net interest paid of R27 million
(US$4 million) this quarter. This change reflects interest of R32 million (US$4
million) paid on loans to finance the South Deep acquisition and lower interest
received due to an average lower cash balance quarter on quarter.
The gain on foreign debt, net of cash, of R264 million (US$36 million),
compares with a loss of R3 million (US$1 million) in the September quarter. The
December quarter`s gain consists largely of an unrealised exchange gain on the
US$1.2 billion loan raised to finance the acquisition of 50 per cent of the
South Deep mine amounting to R223 million (US$30 million), and exchange
gains on the translation of the Western Areas gold derivative and deferred
premium of R42 million (US$6 million) and R15 million (US$2 million)
respectively. This was partly offset by an unrealised exchange loss of
R13 million (US$2 million) relating to a US dollar denominated insurance
receivable at South Deep.
The loss on financial instruments doubled from R9 million (US$1 million) to
R19 million (US$3 million) for the December quarter. This quarter`s loss
comprises marked to market losses on the Western Areas options and deferred
premium of R44 million (US$6 million), R21 million (US$3 million) on the US
dollar / Rand forward purchase, and R2 million (US$0.3 million) on the diesel
hedge taken out in Ghana. This was offset by marked to market gains on share
warrants of R28 million (US$4 million), R18 million (US$3 million) on gold
purchases effected by Western Areas and R2 million (US$0.3 million) on the US
dollar / Australia dollar call options.
Exploration
Exploration expenditure in rand terms was virtually unchanged at R65 million
(US$9 million) quarter on quarter. Please refer to the Exploration and
Corporate Development section for more detail.
Taxation
Taxation for the quarter amounted to R480 million (US$65 million) compared with
R464 million (US$65 million) in the September quarter. The tax provision
includes normal and deferred taxation on all operations together with
government royalties at the international operations.
Earnings
Net profit attributable to ordinary shareholders amounted to R767 million
(US$104 million) or 148 SA cents per share (US$0.20 per share), compared with
R698 million (US$98 million) or 141 SA cents per share (US$0.20 per share) in
the previous quarter and represents an increase of 10 per cent.
Headline earnings i.e. earnings less the after tax effect of asset sales,
impairments and the sale of investments, was R762 million (US$103 million) or
147 SA cents per share (US$0.20 per share), compared with earnings of R692
million (US$98 million) or 140 SA cents per share (US$0.20 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 R564 million
(US$76 million) or 108 SA cents per share (US$0.15 per share), compared with
earnings of R702 million (US$99 million) or 142 SA cents per share (US$0.20 per
share) reported last quarter. The decrease in these earnings is mainly due to
the after tax effect of increases in amortisation of R45 million
(US$6 million), sundry costs and royalties of R32 million (US$4 million), a
decrease in interest and investment income of R42 million (US$6 million) and a
decrease in operating profit of R12 million (US$2 million).
Cash flow
Cash flow from operating activities for the quarter was R1,381 million (US$190
million), which is 14 per cent lower than the operating cash flow generated in
the September quarter of R1,609 million (US$227 million). This decrease in cash
flow reflects an increase in working capital as a result of an increase in
inventories and receivables with the latter impacted by the timing of gold
sales in the quarter.
There were no dividends paid during the quarter. In the September quarter
dividends paid amounted to R556 million (US$78 million) of which R11 million
(US$2 million) was paid to outside shareholders in Ghana.
Capital expenditure amounted to R1,376 million (US$187 million) compared with
R1,188 million (US$167 million) in the September quarter, an increase of R188
million (US$20 million). The majority of this increase was at the South African
operations, where capital expenditure increased from R433 million (US$61
million) in the September quarter to R565 million (US$77 million) in the
December quarter. The increase in capital expenditure is mainly due to
additional development, upgrading the hostels and the inclusion of South Deep.
The main areas of capital expenditure during the quarter were ore reserve
development at Driefontein, Kloof and Beatrix of R94 million (US$13 million),
R96 million (US$8 million) and R55 million (US$7 million) respectively, as well
as the other major projects. At Driefontein expenditure at the 1 and 5 shaft
complex amounted to R20 million (US$3 million), R13 million (US$2 million) on
the 4 shaft pillar extraction project and R10 million (US$1 million) on the 9
shaft deepening project. At Kloof expenditure on the 4 sub- vertical shaft
amounted to R17 million (US$2 million) for the quarter, R13 million (US$2
million) on the 1 shaft pillar extraction project and R12 million
(US$2 million) on the KEA drop down project. At Beatrix expenditure on the
3 shaft project amounted to R35 million (US$5 million) together with
development on West shaft of R22 million (US$3 million). Expenditure at South
Deep during December amounted to R41 million (US$6 million) including ore
reserve development.
At the Ghanaian operations, capital expenditure at Tarkwa increased
significantly from R90 million (US$13 million) to R189 million (US$26 million)
quarter on quarter. The main areas of capital expenditure were the purchase of
secondary mining fleet (US$14 million), capital waste mining (Teberebie cutback
- US$7 million), expenditure on the initial work carried out on the CIL
expansion project (US$3 million) and progress on other minor projects.
Damang at R53 million (US$7 million) was similar to the September quarter.
At Choco 10 capital expenditure decreased by R39 million (US$6 million) from
R77 million (US$11 million) to R38 million (US$5 million) as exploration
drilling costs decreased and the initial plant upgrade was completed in the
September quarter.
The Australian operations incurred capital expenditure of R182 million (A$32
million), compared with R174 million (A$32 million) in the September quarter.
Expenditure at St Ives increased by R10 million (A$1 million) from R116 million
(A$21 million) to R126 million (A$22 million) due to increased development
costs. At Agnew, capital expenditure at R56 million (A$10 million) was similar
to the previous quarter.
Capital expenditure at the Cerro Corona mine in Peru amounted to R341 million
(US$46 million) in the December quarter compared with R361 million (US$51
million) in the September quarter.
Spending on other investment activities amounted to R8,760 million (US$1,210
million) of which R8,677 million (US$1,198 million) was for the purchase of
South Deep and R78 million (US$11 million) for the purchase of shares in
Conquest Mining in Australia and shares in Lero Gold Corporation, which is
listed on the Toronto Stock Exchange with assets in Kyrgyzstan, Kazakhstan and
Russia.
The cash outflow from financing activities amounted to R9,016 million (US$1,261
million) of which R9,058 million (US$1.2 billion) was for loans received to
finance the South Deep acquisition.
Net cash inflow for the quarter was R262 million (US$55 million).
After accounting for a translation loss of R73 million (US$14 million), the
cash balance at the end of December was R1,413 million (US$202 million). The
cash balance at the end of September was R1,224 million (US$161 million).
Detailed and operational review
Cost and revenue optimisation initiatives
Project 500
Project 500 was initiated at the South African operations 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.
Operational Excellence, a change programme, was initiated in April 2005 to
create the required skills, behaviour and environment to improve efficiencies.
The objective of these initiatives is to increase mining volumes whilst
maintaining yields as close as possible to life of mine reserve yields.
Reconciliation of achieved yields to gold reserves
Sep Dec
Quarter ended F2005 F2006* 2006* 2006*
Driefontein:
Life of mine head grade as per
published declarations 8.1 8.0 8.0 8.0
Life of mine head grade adjusted for
estimated metallurgical recoveries 7.8 7.8 7.8 7.8
Driefontein (underground yields
achieved) 8.3 8.1 7.5 7.5
Kloof:
Life of mine head grade as per
published declarations 10.5 10.0 10.0 10.0
Life of mine head grade adjusted for
estimated metallurgical recoveries** 10.2 9.7 9.7 9.7
Kloof (underground yields achieved) 9.1 8.7 8.7 7.8
Beatrix:
Life of mine head grade as per
published declarations 5.5 5.5 5.5 5.5
Life of mine head grade adjusted for
estimated metallurgical recoveries 5.3 5.3 5.3 5.3
Beatrix (underground yields
achieved) 5.0 5.2 4.7 5.0
South Deep+:
Life of mine head grade as per
published declarations - - - 6.1
Life of mine head grade adjusted for
estimated metallurgical recoveries - - - 5.9
South Deep (underground yields
achieved) - - - 7.7
* 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 and a poor
mine call factor achieved in the December quarter.
+ The acquisition of South Deep is effective from 1 December 2006.
Therefore, these results include activities for the month of December only
and the reserve statement as at 30 June 2006.
Project 100+
Continuing on the previous quarter`s momentum and with several fresh
initiatives, Project 100 remains a dedicated focus point for ongoing cost
optimisation at the SA Operations.
Current projects include the labour optimisation project, with its long- term
objective of improving productivity through a series of initiatives. The Eskom
demand side management project focusing on managing hot and cold water systems
is expected to realise around R12 million in financial 2007 increasing to an
estimated R30 million in financial 2008. Further projects awaiting Eskom
approval include the rollout of successful water control, thermal ice storage,
compressed air and ventilation fan control, which will contribute to reduce
electricity consumption.
The initiative to replace diesel-operated locomotives with battery operated
locomotives sees the first replacement locomotives arriving in the March 2007
quarter. Benefits will be realised as from financial 2008. Savings are also
anticipated in financial 2008 through the installation of equipment for the
Pump Efficiency Monitoring initiative which will highlight pump inefficiency,
with the monitoring having already commenced.
Project Beyond
Following solid cost savings delivered over the previous two financial years
continued total cost and productivity value delivery contributions were
achieved over the last two quarters. Financial 2007 year to date did however
experience extreme market driven inflationary pressures, with a June to
November 2006 PPI of 7.2 per cent. As a result Gold Fields experienced an
overall 4 per cent price inflation year to date impact over the total basket of
actual supply and services spend (excluding power). The main industry commodity
cost drivers behind the stated year to date price inflation impact were steel,
copper, fuels and food.
Financial year 2007 year to date cumulative contracted benefits are R35 million
at the South African operations. Of this amount, R8 million of contracted
benefits were delivered during the December quarter through a drill steel and
waste optimisation pilot together with revised engineering supply and repair
contracts, and a move to in-house repairs for selected items as well as
in-house manufacture. In addition the explosives performance initiative which
is a risk and reward alliance arrangement with selected explosives suppliers
showed a net benefit this last quarter of around R19 million, with a
cumulative annual net benefit of around R26 million.
During the next quarter continued focus will be on explosives performance and
drill steel wastage reduction projects being rolled-out across more shafts.
Engineering cost optimisation, together with underground services efficiencies
optimisation and the South Deep integration will also receive priority.
Global / International Supply Chain and Strategic Sourcing Optimisation
Global integrated supply chain initiatives continued delivering total cost
benefits in financial 2007. Cross regional cyanide contract alignment
received priority focuses in the other International regions this last quarter.
Global inflationary pressures in financial year 2007 also impacted
International operations. Price inflation across the total spend basket
(excluding power) for Australia and Ghana was between 4 and 5 per cent which
is in line with inflation. Key reasons for the price inflation in Ghana were
higher prices for diesel, cyanide, cement and tyres. Australian upward price
pressures were largely due to the combined impact of price increases in
contract labour, tyres, caustic, cyanide, quicklime and cement.
From a contracted benefits perspective financial 2007 year to date cumulative
annualised benefits are US$6 million. The Australian Beyond-Bullion cost
optimisation project contributed the largest portion to the additional
US$3 million savings during the December quarter. Africa region shipping
rates also furthermore produced contracted savings for Ghana operations
through a competitive tender process.
For the March quarter 2007 continued priority focus will be on cross regional
synergies in areas such as earthmoving tyres, cyanide and group logistics.
South African Operations
Driefontein
December September
2006 2006
Gold produced - kg 7,692 8,009
- 000`ozs 247.3 257.5
Yield - underground - g/t 7.5 7.5
- combined - g/t 4.6 4.7
Total cash costs - R/kg 81,721 77,163
- US$/oz 344 338
Gold production decreased by 4 per cent from 257,500 ounces in the September
quarter to 247,300 ounces in the December quarter, which was slightly higher
than forecast. This decrease was due to the redesign and replanning of the 4
shaft pillar extraction necessitated by the instability experienced at the 4
shaft barrel.
Underground tonnage decreased from 964,000 tons in the September quarter to
937,000 tons in the December quarter. Underground yield was unchanged at 7.5
grams per ton. The reduction in underground production is directly attributable
to the lower production levels at Driefontein 4 shaft as a consequence of the
rescheduling of the extraction from the shaft pillar. Surface tons and yield
declined marginally from 739,000 tons to 736,000 tons and from 1.1 grams per
ton to 0.9 grams per ton respectively. Operating costs increased by 2 per cent
from R650 million (US$92 million) to R661 million (US$90 million) as a result
of an increase in contractor expenditure. These contractors are being utilised
for equipping and opening-up together with additional secondary support in
haulages. As a result of the increase in costs and lower production, total cash
costs increased by 6 per cent in rand terms from R77,163 per kilogram to
R81,721 per kilogram. In US dollar terms, total cash costs increased 2 per cent
from US$338 per ounce to US$344 per ounce.
Operating profit decreased by 8 per cent from R487 million (US$69 million) in
the September quarter to R450 million (US$61 million) in the December quarter
as a consequence of the lower gold production and increase in costs, partially
offset by the higher rand gold price.
Capital expenditure increased from R144 million (US$20 million) to R177 million
(US$24 million). The major portion of this expenditure was spent on the 1, 5
and 9 shaft projects, the 4 shaft pillar extraction and ore reserve
development. The 9 shaft project is still in advanced design phase and shaft
sinking should commence as planned by October 2007.
Gold production for the March quarter is forecast to reduce marginally due to
the annual Christmas break. As a consequence unit costs will increase
accordingly.
Kloof
December September
2006 2006
Gold produced - kg 7,172 7,549
- 000`ozs 230.6 242.7
Yield - underground - g/t 7.8 8.7
- combined - g/t 7.3 7.6
Total cash costs - R/kg 84,021 78,077
- US$/oz 354 342
Gold production at Kloof decreased by 5 per cent, from 242,700 ounces in the
September quarter to 230,600 ounces in the December quarter. The reason for the
decrease in gold production was lower yields associated with a lower mine call
factor. Total underground tons milled increased from 852,000 to 893,000 tons.
Surface tons reduced by 34 per cent from 140,000 to 93,000 tons, displaced by
the increase in underground tons.
Operating costs at R629 million (US$85 million) for the quarter increased by 2
per cent compared with the previous quarter`s cost of R616 million (US$87
million). This was mainly due to a 2 per cent increase in area mined albeit at
lower grades and the increase in underground tonnage produced. As a result of
the lower gold production and increase in costs, total cash costs increased
by 8 per cent to R84,021 per kilogram, compared with R78,077 per kilogram in
the September quarter. In US dollar terms total cash costs increased by 4 per
cent to US$354 per ounce compared with the September quarter`s US$342 per
ounce. Operating profit was lower at R407 million (US$55 million) compared with
R455 million (US$64 million) for the September quarter.
Capital expenditure increased from R184 million (US$26 million) to R191 million
(US$26 million) due to an increase in ore reserve development. The KEA project
is being advanced on schedule.
Gold production and costs for the March quarter are forecast to be similar to
the December quarter with potentially higher gold production offset by the
impact of the Christmas break.
Beatrix
December September
2006 2006
Gold produced - kg 4,650 4,636
- 000`ozs 149.5 149.1
Yield - underground - g/t 5.0 4.7
Total cash costs - R/kg 80,237 77,330
- US$/oz 338 339
Gold production at Beatrix was stable at 149,500 ounces in the December quarter
compared with the 149,100 ounces produced in the September quarter. Tonnage
milled reduced to 935,000 tons in the December quarter from 984,000 tons in the
previous quarter. This was due to lower volumes mined due to infrastructure and
logistical issues at the West section. This was offset by an increase in yield
from 4.7 grams per ton in the September quarter to 5.0 grams per ton in the
December quarter as quality volumes improved.
Operating costs quarter on quarter increased by 3 per cent from R379 million
(US$53 million) to R392 million (US$53 million). This was mainly due to
additional equipping, haulage maintenance, increased material prices and
additional overtime worked to minimise the impact of the Christmas break.
Total cash costs increased from R77,330 per kilogram (US$339 per ounce) in the
September quarter to R80,237 per kilogram (US$338 per ounce) in the December
quarter. Beatrix posted an operating profit of R275 million (US$37 million) for
the quarter compared with R284 million (US$40 million) in the September
quarter.
Capital expenditure increased by R51 million (US$6 million) from R105 million
(US$15 million) in the September quarter to R156 million (US$21 million) in the
December quarter. This was mainly due to an increase in capital development,
predominantly at the North and West sections.
Gold production is forecast to be marginally lower in the March quarter due to
the impact of the Christmas/New Year break.
South Deep
December September
2006 2006
Gold produced - kg 838 n/a
- 000`ozs 26,900 n/a
Gold sold - kg 682 n/a
- 000`ozs 21,900 n/a
Yield - underground - g/t 7.7 n/a
- combined - g/t 4.6 n/a
Total cash costs - R/kg 133,724 n/a
- US$/oz 564 n/a
Gold production since acquisition on 1 December 2006 amounted to 26,900 ounces
at a cash cost of R133,724 per kilogram and US$564 per ounce.
The fire which broke out on 31 August 2006 has been fully extinguished.
Rehabilitation work and equipping of the affected areas is ongoing and mining
has already commenced in certain of the affected areas. In addition, new areas
have been opened up for mining which will contribute to achieving the targeted
levels of production.
South Deep will see production back at 150,000 tons per month by the end of the
March quarter, the same level as April 2006 before the Twin Shaft accident. The
shaft repairs have been completed and signed-off. The last two weeks in January
have concentrated on on-the-job refresher training of the shaft operating
personnel and cautiously drawing down the ore passes, which have remained full
since before the accident; this process is going well. The team is to be
congratulated for their dedicated efforts over the 9 month period, safely
completing the work and meeting the targets of the physical repair programme.
Production will continue to ramp up and by the December 2007 quarter current
infrastructure will support steady state production of 200,000 to 220,000 tons
per month. The backfill plant upgrades completed last year will ensure
increased backfill volumes are matched to the higher production rates. The
below 95 level capital development is currently out on tender where the
successful contractor is expected to mobilize during March, with initial
development concentrating on 100 level followed by 105, 110 and 110A levels
forecast to be completed by calendar year end. This capital development, one
of several major capital projects, is critical to achieve the previous JV`s
approved Feasibility Study of increased production to 330,000 tons per month
in a 6-7 year timeline, with the increased infrastructure and required capital
spend of approximately R3.5 billion. The current 94 level refrigeration project
is on target for February 2008, with current work concentrating on the re-
support of the excavations and the installation of the brattice wall in the
Ventilation shaft. This is followed by deepening of the Ventilation shaft by
300 metres to 10 metres below the Main shaft and 3,005 metres below the surface
collar. The rock winder will be ordered by year end for commissioning in 2010.
During this period it is planned to upgrade the metallurgical facility to
330,000 tons per month throughput with the addition of the second ball mill
and the construction of a tailings dam facility.
The year ahead will see a dynamic and exciting time in the mine development
with the following specifics, to name a few, the commencement of long hole
stoping with backfill, the down dip development in the 95 1W and 3W projects,
the commencement of the mechanized de-stress trial mining method, backfill
design work for paste fill to augment the present backfill facilities and
exploration drilling, both underground and from surface.
Capital expenditure for the month of December amounted to R41 million.
Gold production for the March quarter is forecast at 80,000 ounces. The higher
volumes will result in an associated decrease in cash costs.
International Operations
Ghana
Tarkwa
December September
2006 2006
Gold produced - 000`ozs 178.8 173.6
Yield - Heap leach - g/t 0.8 0.8
- CIL plant - g/t 1.6 1.5
- Combined - g/t 1.0 1.0
Total cash costs - US$/oz 323 344
For the quarter Tarkwa processed 5.59 million tons and produced 178,800 ounces
of gold at an average yield of 1.0 gram per ton. This compares to 5.51 million
tons processed, producing 173,600 ounces in the September quarter also at a
yield of 1.0 gram per ton. The yield from the CIL plant increased from 1.5 to
1.6 grams per ton in the December quarter, whilst heap leach yield decreased
slightly from 0.82 to 0.81 grams per ton. Both heap leach and CIL tonnages
treated increased in the December quarter.
Total tons mined, including capital stripping, increased from 24.4 million tons
in the previous quarter to 26.0 million tons for the current quarter. Ore tons
moved for the December quarter at 5.23 million tons compares with 5.20 million
tons in the September quarter. The mined grade of 1.20 grams per ton in
December compares with a mined grade of 1.33 grams per ton in the September
quarter. The overall strip ratio for the quarter was 3.96 compared with 3.68 in
the September quarter.
Total feed to the heap leach sections was 4.24 million tons at a head grade of
1.13 grams per ton, compared with 4.20 million tons at a head grade of 1.12
grams per ton for the September quarter. Overall, the heap leach sections
produced 110,500 ounces for the quarter compared with the 110,100 ounces
achieved in September quarter. There was a net gold-in-process increase of
6,900 ounces.
The total feed to the CIL plant was higher than the previous quarter at a
record 1.35 million tons, compared with the previous quarter`s 1.32 million
tons. Head grade also increased from 1.52 grams per ton to 1.68 grams per ton.
The CIL plant produced 68,300 ounces in the December quarter, compared with
63,500 ounces in the previous quarter.
Operating costs, including gold-in-process (GIP) movements, at US$58 million
(R425 million) were US$2 million lower than the previous quarter and reflect an
increase in GIP partially offset by an increase in the cost of on-site power
generation (in line with national load shedding requirements), an increase in
earthmoving machine maintenance and repair costs, the increase in tonnage
treated and an increase in labour costs.
Operating cost per ton processed was US$11.02 as against US$10.95 in the
September quarter. Total cash costs at US$323 per ounce decreased 6 per cent
compared with the September quarter`s US$344 per ounce. This decrease in cash
costs was caused primarily by the impact of savings brought about in the mining
operation through increased load and haul efficiencies and by the 3 per cent
increase in gold output. Operating profit at US$52 million (R381 million)
increased from US$49 million (R344 million) when compared with the
September quarter.
The Tarkwa CIL Expansion and North Heap Leach Extension projects were approved
during the quarter. The estimated costs of these projects are US$126 million
and US$49 million respectively. The CIL Expansion project will increase plant
throughput from current levels to 1 million tons per month, whilst the North
Heap Leach Extension project is a planned extension of the existing heaps to
cater for ongoing stacking requirements.
Capital expenditure for the quarter amounted to US$26 million (R189 million)
compared with US$13 million (R90 million) in the September quarter. The main
areas of capital expenditure were the purchase of secondary mining fleet,
capital waste mining (Teberebie cutback), expenditure on the initial work
carried out on the CIL expansion project and progress on other minor projects.
A US$4 million joint venture tyre re-tread facility was approved for
construction during the quarter. This project is being advanced to mitigate the
global tyre shortage.
Gold production for the March quarter is expected to be similar to the current
quarter and still in line with an annualised throughput of around 700,000
ounces. Unit costs are expected to remain under pressure on the back of the
continued cost of on-mine power generation.
Damang
December September
2006 2006
Gold produced - 000`ozs 51.6 48.5
Yield - g/t 1.2 1.1
Total cash costs - US$/oz 447 438
Gold production increased 6 per cent from 48,500 ounces during the September
quarter to 51,600 ounces in the December quarter. This improvement resulted
from an increase in the higher-grade fresh ore tonnages mined and processed
from the Damang pit cutback and Juno 2 South West (J2SW) pits, which in turn
reduced the volume of lower grade B3 stockpile material that was fed to the
plant. The mill throughput for the quarter at 1.33 million tons was marginally
higher than the 1.32 million tons processed in the September quarter.
Total tons mined increased from 5.1 million tons in the previous quarter to 5.4
million tons in the current quarter. Ore mined for the quarter at 856,000 tons
was 5 per cent higher than the previous quarter`s 818,000 tons. This was as a
result of the higher fresh ore tonnages mined from the Damang pit cutback and
J2SW pits. Additional oxide ore tonnages were mined from Tomento pits to meet
mill-blending requirements. The strip ratio of 5.3 was similar to the September
quarter. The Tomento pits will remain the main source of oxide feed to the
plant, while increasing volumes of fresh ore will be mined from the Damang pit
cutback and J2SW pits.
Operating costs, including gold-in-process (GIP) movements, increased from
US$21 million (R150 million) to US$23 million (R169 million). The higher
tonnages mined from the pits and the on-site power generation (in line with
national load shedding requirements) were the main contributors to the higher
costs. These factors increased the cost per ton milled from US$15.23 to
US$16.98. Total cash costs increased from US$438 per ounce to US$447 per ounce,
also reflecting the higher operating costs. Operating profit for the quarter at
US$9 million (R64 million) was similar to the September quarter.
Capital expenditure for the quarter was similar to the September quarter at
US$7 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 5.58
million bank cubic metres (BCM), which is 9 per cent more than the progressive
project plan. The project remains on plan at US$44 million. A capital project
to construct a seventh leach tank commenced during the quarter. This project is
expected to deliver higher recoveries through increased residence time.
Gold production is expected to increase slightly in the March quarter as a
greater proportion of lower grade B3 fresh stockpiled ore is replaced by
high-grade fresh ore mined from the Damang pit cutback and J2SW pits. Cost
pressure will continue as a result of the continued cost of on-mine power
generation.
Venezuela
Choco 10
December September
2006 2006
Gold sold - 000`ozs 22.8 17.2
Gold produced - 000`ozs 22.8 16.2
Yield - g/t 2.0 1.7
Total cash costs - US$/oz 426 458
Gold production for the quarter increased 41 per cent from 16,200 ounces to
22,800 ounces.
Mining continued in the Pisolita, Coacia and the Rosika open pits.
Mined quantities were slightly lower than plan mainly as a result of lower than
expected machinery availability and a strike which lasted for a week during
December. Also, during November the SAG mill motor was damaged due to the
ingress of water causing a loss of 4 days` production. An additional 4 days
were lost due to the scheduled relining of the ball mill. Added to this is a
water shortage which negatively affected production towards the end of the
quarter and will continue into 2007. This will severely affect production for
the remainder of financial 2007. The grade mined was similar to last quarter at
1.90 grams per ton. Lower grade material was stockpiled separately, allowing a
processed head grade of 2.23 grams per ton compared with 1.98 grams per ton in
the September quarter.
Total mill throughput for the quarter increased from 306,000 tons to 357,000
tons.
Operating costs, including gold-in-process movements, amounted to US$11 million
(R78 million) compared with US$9 million (R66 million) last quarter, in line
with the increase in production. Total cash costs decreased from US$458 per
ounce to US$426 per ounce driven by the increased level of production.
Operating profit was US$3 million (R23 million) compared with US$1 million (R8
million) in the September quarter.
Water levels in the reservoir supplying the mine remain low, as a consequence
of lower than normal seasonal rainfall. A water exploration programme was
expedited to alleviate this shortfall. As water is encountered in the water
exploration holes these are being equipped as temporary production wells for
conversion into permanent wells during the second quarter of 2007. The permit
to extract water from the Yuruari River has not yet been granted and
construction of the pipeline cannot commence without this permit.
Capital expenditure amounted to US$5 million (R38 million) for the quarter
compared with US$11 million (R77 million) in the September quarter. The
resource definition exploration programme on Choco 10 continued to return
numerous significant intersects during the quarter, defining high-grade
extensions to mineralisation along strike and down-dip at the VBK deposit.
A total of 8,413m of diamond drilling and 4,271 metres of RC drilling were
completed during the quarter. High-grade mineralisation has now been defined
over 800 metres strike. The site is currently in the process of updating the
resources and reserves to reflect the aggressive 2006 exploration programme.
Gold production for the March quarter is expected to be below 9,000 ounces due
to the lack of water to support the milling process and due to lower grades as
more ore is mined from the low grade Coacia open pit. Renegotiation of the
mine`s Collective Bargaining Agreement will commence during the March quarter.
Australia
St Ives
December September
2006 2006
Gold produced - 000`ozs 124.6 123.4
Yield - Heap leach - g/t 0.5 0.4
- Milling - g/t 3.1 3.0
- Combined - g/t 2.2 2.3
Total cash costs - A$/oz 493 564
- US$/oz 378 429
Gold production for the quarter was 124,600 ounces, 1 per cent up on the last
quarter`s 123,400 ounces. This increase was due to an increase in head grade
from 3.24 grams per ton to 3.34 grams per ton at the Lefroy mill at similar
volumes. Gold production from the Lefroy mill was 117,000 ounces compared with
116,200 ounces in the September quarter. The heap leach produced 7,600 ounces
compared with 7,200 ounces, the increase resulting from on-going recovery of
gold from slow leaching Mars ore stacked during the previous quarter.
Total open pit volumes decreased as did strip ratios as the Thunderer open pit
commenced ore production. During the quarter 2.4 million bank cubic metres
(BCM`s) of ore and waste were mined compared with 3.2 million BCM`s in the
previous quarter. The average strip ratio decreased to 4.7 compared with 6.3
previously. Open pit operations produced 1.0 million tons of ore for the
quarter compared with 1.2 million tons the previous quarter. Open pit ore grade
remained constant at 2.3 grams per ton. The majority of ore was mined from the
Thunderer and Delta North pits.
Underground operations produced 341,100 tons of ore at 5.2 grams per ton for
the quarter compared with 381,500 tons at 4.8 grams per ton the previous
quarter mainly due to labour and equipment availability. At the Leviathan
complex the majority of production came from the Conqueror zone, with total
tonnage from the complex down but grade increased by 0.6 grams per ton
resulting in a similar contribution. Argo also produced lower tonnage at an
increased grade for slightly less contained ounces compared with the previous
quarter.
Operating costs, including gold-in-process movements, decreased to A$62 million
(R348 million) from A$69 million (R372 million), reflecting the decrease in
volumes mined and a decrease in the waste charge- back following completion of
mining in the Mars and Agamemnon open pits early in the quarter. A price
participation royalty calculated at 10 per cent of the average quarterly gold
price above A$600 per ounce was payable during the quarter and amounted to A$3
million (R14 million) similar to the previous quarter. Total cash costs
decreased from A$564 per ounce (US$429 per ounce) in the previous quarter to
A$493 per ounce (US$378 per ounce) for the December quarter. Operating profit
at A$37 million (R213 million) was up on the previous quarter`s A$32 million
(R172 million).
Capital expenditure for the December quarter amounted to A$22 million (R126
million), which was similar to the September quarter. Mine development capital
increased marginally to A$14 million (R81 million), with reduced pre-strip
costs at Thunderer offset by commencement of development at the Bahama pit.
Argo underground development and expansion of the number 3 heap leach pad were
also significant contributors. Capitalised exploration expenditure was A$6
million (R34 million) for the quarter, compared with A$8 million (R41 million)
in the preceding quarter, with an increased focus on resource infill drilling.
The Leviathan project is being advanced on plan and should be presented to the
Board before financial year end. This large pit will access around 650,000
ounces of gold.
Gold production for the March quarter is expected to increase slightly with a
corresponding reduction in unit costs. This will be achieved through increased
tonnages processed.
Agnew
December September
2006 2006
Gold produced - 000`ozs 53.0 59.2
Yield - g/t 5.2 5.4
Total cash costs - A$/oz 338 276
- US$/oz 260 209
Gold production for the quarter was 53,000 ounces, 10 per cent down on the
previous quarter`s 59,200 ounces. This was due to a decrease in mill throughput
from 344,000 tons to 318,000 tons combined with lower yields for the quarter at
5.2 grams per ton compared with 5.4 grams per ton during the previous quarter.
This was mainly on the back of lower tonnage from the high grade Kim lode,
which was affected by restricted access due to ground conditions, and the paste
fill plant which has not yet been commissioned. This affected fill placement.
Added to this were reduced tonnage and grade from Main Lode and marginally
lower grade from Songvang, together with plant throughput restrictions due to
ore blend.
Open pit mining at Songvang produced 344,000 tons of ore for the quarter,
significantly up on the 213,300 tons produced during the preceding quarter.
The total volume of ore and waste mined from the pit was 1.2 million bank cubic
metres (BCM`s) versus 1.3 million BCM during the previous quarter. The average
strip ratio decreased to 9.1 from 17.0 during the preceding quarter. The
average grade fell to 1.92 grams per ton compared with 1.96 grams per ton last
quarter.
The underground operations at Waroonga produced 100,300 tons of ore at 13.1
grams per ton during the quarter, compared with 118,600 tons at 13.2 grams per
ton in the preceding quarter.
Operating costs, including gold-in-process movements, were A$16 million (R92
million) for the December quarter similar to the September quarter. An increase
in costs of A$2 million due to the completion of the capitalised waste
pre-strip at Songvang and the resultant expensing of internal waste as from
November 2006 was offset by a reduction in costs due to the lower production.
Total cash costs increased to A$338 per ounce (US$260 per ounce) for the
quarter compared with A$276 per ounce (US$209 per ounce) in the preceding
quarter. Operating profit decreased to A$27 million (R151 million) compared
with A$32 million (R173 million) quarter on quarter.
Capital expenditure for the December quarter was A$10 million (R56 million)
compared with A$11 million (R57 million) in the September quarter. Songvang
pre-strip was a major contributor to this expenditure (A$4 million), together
with ongoing development of the Waroonga complex underground mine (Kim and Main
Lodes - A$3 million). Capitalised exploration expenditure was A$2 million (R10
million) compared with A$3 million (R14 million) the previous quarter.
Gold produced during the March quarter is expected to exceed 60,000 ounces due
to increased tonnage and grades from Songvang when compared with the December
quarter, whilst cash costs are expected to fall in line with the increased
production. Capital expenditure is expected to increase with the commencement
of the extension to the Leinster village.
Quarter ended 31 December 2006 compared
with quarter ended 31 December 2005
Attributable gold production decreased 2 per cent from 1,040,000 ounces for the
quarter ended 31 December 2005 to 1,015,000 ounces produced in the quarter
ended 31 December 2006. This decrease was mainly due to the decrease in
production at the South African operations, partially offset by the newly
acquired acquisitions at Choco 10 and South Deep. Production at the remaining
international operations was similar quarter on quarter.
The South African operations produced 652,000 ounces compared with the 698,000
ounces produced in the December 2005 quarter. The decrease at Driefontein,
Kloof and Beatrix amounted to 42,800, 22,000 and 5,400 ounces respectively.
Revenue increased by 40 per cent in rand terms (increased 23 per cent in US
dollar terms) from R3,479 million (US$534 million) to R4,854 million (US$658
million). The higher gold price of R144,485 per kilogram (US$609 per ounce)
compared with R101,184 per kilogram (US$482 per ounce), contributed
significantly to this increase.
Operating costs, increased from R2,349 million (US$360 million) to R2,975
million (US$403 million), an increase of 27 per cent. The weaker rand when
translating costs at the international operations into South African rand
accounted for over R100 million of this increase. Exchange rates weakened from
an average of US$1 = R6.53 to US$1 = R7.38, or 13 per cent and from A$1 = R4.88
to A$1 = R5.66, or 16 per cent quarter on quarter. Total cash costs for the
Group in rand terms, increased 19 per cent from R66,054 per kilogram (US$315
per ounce) to R83,707 per kilogram (US$353 per ounce).
At the South African operations operating costs excluding South Deep increased
by 9 per cent to R1,682 million for the year compared with R1,539 million the
previous year. This was due to above inflation wage increases, an increase
in equipping and secondary support, an increase in commodity prices,
particularly steel, copper, fuel and food, as well as normal inflationary
pressures. Costs at South Deep amounted to R113 million (US$16 million) for
December 2006. Unit cash costs including South Deep increased from R67,977 to
R83,952 per kilogram. Total cash costs excluding South Deep were R82,213 per
kilogram for the quarter. At the international operations unit cash costs
increased by 17 per cent from US$299 per ounce to US$351 per ounce mainly due
to the combined effect of higher stripping ratios and lower grades, added to
the increased cost of inputs driven by the commodities boom and increased fleet
maintenance costs at Tarkwa.
Operating profit at R1,969 million (US$267 million), compared with R1,150
million (US$176 million) in the previous year, with the group benefiting from
the higher gold price in all currencies.
Net earnings were R767 million (US$104 million) compared with R284 million
(US$44 million) in the December 2005 quarter. The increase in earnings was
largely due to the increase in operating profit.
Earnings excluding gains and losses on financial instruments and foreign debt
and exceptional items amounted to R564 million (US$76 million) this quarter
compared with R297 million (US$46 million) in the December 2005 quarter.
Capital and development projects
Cerro Corona
The politically motivated and illegal road blockade as reported last quarter
was peacefully withdrawn on 27 October. Local public support for this action
was never strong, indeed few supported the action. It was this lack of support
coupled with continuous dialog and the support of Peruvian ministry officials
which brought this event to a close. In spite of the blockade, community
relationships around this project remained quite positive and perhaps are now
even stronger than before. The company continues to work closely with the
several communities located near the Cerro Corona project site, fulfilling the
commitments made for cooperative community enhancement projects. The focus of
these projects remains on sustainable development efforts as well as projects
with a particular focus on education and health.
More than three full weeks of construction activity were lost because of this
blockade. However, by late November most activities had resumed, though at a
reduced rate. During this period, contract formats were also changed to address
and reinforce other requirements with respect to using local contractors. Work
reallocation among more than fifty local contractors was accomplished.
Once work was resumed on 15 November, the mining operations quickly ramped up
to pre-stoppage levels and by the end of the quarter mining rates were at the
level required for full scale operations of 1 million tons per month.
A majority of on site construction activities involved topsoil stripping from
the tailing management facility embankment foot print and mass earthworks for
the plant site platform which reached 98 per cent complete by the end of the
period. Run of mine pad earthworks and haul road construction advanced, however
at a slower than planned pace due to the lack of suitable mined overburden for
construction.
The plant civil, structural, mechanical and piping contractor commenced
mobilization in November and will commence concrete works in early January
following completion and turnover of the plant site platforms. There are
currently in excess of 500 workers engaged onsite of which some 170 are
employed directly by the company.
Completion of outstanding engineering activities by the engineering contractor
continued, but at a slower than planned advance rate. Current estimates are
that this effort will now be completed by mid- February 2007. Final design
packages for tailing and mine overburden storage facilities have been received,
comments and observations are being addressed in final design revisions.
Procurement is similarly advanced and delivery of all major equipment is not on
the Project critical path.
Schedule recovery planning is in progress, with the contractor to maintain a
plant commissioning and production schedule for late December 2007, however
with recent delays related to community- driven issues, this is at risk in
slipping into early first quarter of calendar 2008.
Project commitments through the end of the quarter were US$172 million versus
US$240 million planned. The commitment under-runs are primarily due to delays
in committing the tailings embankment, electrical and instrumentation and
auxiliary buildings packages. Current forecast at completion remains at about
US$340 million.
Arctic Platinum
North American Palladium Finland OY ("NAPF") and Gold Fields Exploration
technical staff continue to review drilling results and processing options
during the quarter. The third party engineering firm retained by NAPF for
development of a Feasibility level study will complete their work in the third
quarter of F2007. Both NAPF and Gold Fields will review the findings and agree
future activities at that time.
Exploration and corporate development
Gold Fields completed drilling on six projects during the quarter on its
greenfield exploration sites. At the Essakane project in Burkina Faso (GFI
earning 60 per cent), significant progress was made towards completing the
reassay programme and finalising a new resource estimation as at year end.
Results are presently under review and we are poised to commence the Bankable
Feasibility Study once final agreement is reached with our partners Orezone
Resources Inc (TSX: "OZN") on the commercial and operating agreements for the
project.
On the Sankarani project (GFI earning 65 per cent) in south-western Mali,
presently operated by partner Glencar Mining plc (AIM: "GEX"), additional RC
drilling was completed on the Kabaya South target during the quarter. At the 80
per cent owned Kisenge project in the southern DRC partial results for the
previously completed aircore and diamond drilling programme were received
during the quarter. These results support the concept that a significant
resource could be present on the Kisenge project and that it has direct
geologic analogues to the Tarkwa project in Ghana. We are planning a
significant drilling programme after the rainy season upon approval of budgets
and availability of a suitable contractor for the project.
At the Central Victoria project in Australia, aircore drilling continued to
define the newly discovered parallel trend located to the east of Lockington
trend. Follow-up diamond drilling commenced in December and results are
pending. Initial aircore and RC drilling was completed on two targets within
our New South Wales generative programme being completed with a subsidiary
company owned by GeoInformatics Exploration Inc (TSX Venture: "GXL").
In China, Gold Fields reached an agreement with Sino Gold Limited (ASX: "SGX")
to form a new strategic alliance for future exploration in China. Gold Fields
currently owns 17.4 per cent of SGX. The alliance calls for the transfer of all
the Gold Fields exploration properties in China as well as its operating staff
into a new 50:50 owned and funded exploration vehicle focused on greater than 5
million ounce projects. Gold Fields will benefit from the operating experience
of SGX in China and SGX will benefit from Gold Fields technical and operational
abilities.
In the El Callao District in Venezuela, regional exploration continued
surrounding Gold Fields 95 per cent owned Choco 10 mine and fieldwork continued
on the recently acquired Choco 6 concession. An extensive resource drilling
programme is in progress at Choco 10 that will lead to the issuance of Gold
Fields` first resource and reserve statement on that property.
Diamond drilling continued on the Tres Palmas project in the Dominican Republic
with partner GoldQuest Mining Corp (TSX Venture: "GQC"). Approximately 1,300
meters was completed of a proposed 2,000 meter programme before the Christmas
break curtailed activities.
Corporate
Acquisition of South Deep
On 11 September 2006, Gold Fields Limited announced three separate
transactions, collectively worth approximately US$2.5 billion, which would
significantly increase Gold Fields` interest in the South Deep Gold Mine in
South Africa. South Deep is one of the most important developing gold mines in
the world, with reserves of 29.3 million ounces contained in a resource of 67
million ounces.
The salient features and status of the three separate transactions is
as follows:
- Gold Fields and Barrick Gold Corporation (Barrick) reached
agreement for Gold Fields to acquire the 50 per cent stake owned
by Barrick in the developing South Deep gold mine for a total
consideration of US$1.525 billion. On 1 December 2006, Gold
Fields announced that it had successfully completed the acquisition
of Barrick`s 50 per cent stake in South Deep;
- Gold Fields and JCI Limited (JCI) reached agreement for Gold
Fields to acquire 27 million Western Areas shares from JCI, which
would increase Gold Fields` stake in Western Areas to 34.7
percent. The parties further agreed to a reciprocal call and put
option that could see Gold Fields increase its stake in Western
Areas to 41 per cent. On 1 December 2006, Gold Fields
announced that it had acquired the 27 million WAL shares from JCI
and also exercised the call option in respect of a further 9.96 million
WAL shares; and
- Gold Fields undertook to make a general offer to Western Areas
Limited (Western Areas) shareholders to acquire all of the
outstanding shares in Western Areas which Gold Fields did not yet
own. Western Areas` largest asset is its 50 per cent interest in
South Deep. On 30 October 2006, Gold Fields made a general
offer to all Western Areas shareholders. As at 18 January 2007,
Gold Fields either owned or had received irrevocable undertakings
in respect of approximately 95.6 per cent of the issued share capital
of Western Areas, allowing Gold Fields to invoke the "compulsory
squeeze out" provisions of Section 440K of the Companies Act, 61
of 1973 ("Section 440K"). Western Areas shares will be suspended
on the JSE Limited ("JSE"), with effect from the commencement of
trade one business day following the day upon which notice in
terms of Section 440K is posted to remaining Western Areas
shareholders. The listing of Western Areas shares will be
terminated on the JSE, with effect from the commencement of trade
on the first Monday following the date upon which Gold Fields
becomes entitled and bound to acquire, in terms of Section 440K of
the Act, those offer shares in respect of which the offer had not
been accepted by the closing date.
Provisional accounting in accordance with IFRS3,
Business combinations
The acquisition of South Deep has been accounted for on a provisional basis in
accordance with the provisions of IFRS 3, Business Combinations. To give effect
to the acquisition on a provisional basis, the difference between the purchase
price and the net asset value of South Deep, without adjusting for any fair
values, has been accounted for under property, plant and equipment. In
addition, no account has been made of the tax effect on the difference, nor has
any additional amortisation arising from the difference been charged to
earnings.
IFRS 3 states that where the fair values to be assigned to the assets,
liabilities or contingent liabilities or the cost of the combination can only
be determined provisionally, the business combination shall be accounted for
using those provisional values. Adjustments to these provisional values must
however be completed within twelve months from acquisition of a controlling
interest (i.e. November 2007).
Western Areas Limited gold derivative structure
By quarter end Gold Fields Limited had acquired 84 per cent of Western Areas
Limited and as such also acquired its long-dated gold derivative structure.
Details of the structure are outlined below.
In 2001 the Board of Western Areas Limited decided to enter into a long-dated
derivative structure based on the selling of options on Western Areas` share of
South Deep`s gold production. The derivative structure took effect in the last
quarter of 2001 and expires in mid-2014.
Current Structure
- Western Areas bought put options to provide price protection for the
operation up to June 2014.
- Western Areas sold call options equivalent to 77 per cent of the
puts bought, capping the upside gold price participation over the
remaining nine year period.
- Western Areas bought call options equivalent to 39 per cent of the
calls sold at a higher gold price, giving the Company upside gold
price participation over the remaining nine year period.
- Western Areas sold higher value call options equivalent to 31 per
cent of the puts bought, capping the upside gold price participation
over the remaining nine year period.
- The option premium for the sold options was received upfront, and
payment for the bought options was deferred until maturity of the
option, effectively spreading the payment over the duration of the
hedge.
- The net volume of gold committed to the derivative structure is
currently 7.8 per cent of Western Areas` attributable mineral
reserves.
- The options provide the ability to close out the hedge positions in
the event of appropriate market conditions.
- There is currently no Rand hedging in this structure and the
Company is fully exposed to currency fluctuations. All the options
are United States Dollar denominated.
In December 2001, US$104 million was received for premiums on sold options.
This gave rise to the cash balance held in Escrow at the time, which was used
to fund the mining operation. Simultaneously the options bought gave rise to an
obligation to pay option premiums, totaling US$250 million, at various
predetermined dates in the future - the Option premium payable. The Option
premium payable liability is reflected at the current settlement value of the
future payments. An adjustment is made on a periodic basis to reflect the
change in the value of the liability.
In terms of the option exposure to the gold price, for every one US dollar
increase/decrease in the gold price, the extent of the liability will
increase/decrease by US$1.1 million as at 31 December 2006. The exposure to the
gold price decreases monthly as the Company closes out the matured options.
Refer detail on page 15.
Listing on the Dubai International Financial Exchange On 30 October 2006 Gold
Fields became the first African, South African and gold mining company to list
on the Dubai International Financial Exchange (DIFX).
Gold Fields is again leading South African companies into a new terrain that we
believe will yield many positive returns in the future. The DIFX is the gateway
to a significant pool of liquidity in the Gulf, Middle East and Central Asian
region.
The South African Minister of Minerals and Energy, Buyelwa Sonjica expressed
her approval by saying:
"Gold Fields is one of South Africa`s leading companies and also one of our
proudest exports. The listing in Dubai supports our government`s initiatives to
build solid cross-border interactions and encourage capital inflows into our
beautiful country. I therefore wish Gold Fields well in this venture and
believe that it will add value to the economy of Dubai."
South African Government Approves Mining Licenses On 10 November 2006 it was
announced that the South African Department of Minerals and Energy had formally
approved the conversion of the Driefontein, Kloof and Beatrix gold mines
old-order mining licenses into new order mining licenses.
To convert old order mining licenses into new order mining licenses, companies
must meet the requirements of the Mineral and Petroleum Resources Development
Act (MPRDA) 28 of 2002, which was enacted in May 2004, as well as the Broad
Based Socio-Economic Empowerment Charter for the South African Mining Industry
and the associated Scorecard for the Mining Industry.
Expansion projects at Tarkwa
Two significant expansion projects at Tarkwa Gold Mine in Ghana were approved
by the Board during the last quarter.
The first relates to the expansion of the existing Carbon-in-Leach (`CIL`)
process plant facility from a design tonnage throughput capacity of 4.2 million
tons per annum (`Mtpa`) to 12.0Mtpa. The capital cost for this expansion is
estimated at US$126 million (R900 million). Construction is expected to start
in the first quarter of calendar 2007, with commissioning scheduled to be
completed by the second half of calendar 2008. In addition to the main process
plant, this project also entails an expansion of the tailings storage
facilities and associated infrastructure.
The second project is an expansion of Tarkwa`s North Heap Leach facility by
adding an additional heap leach pad (Phase 5) to the North Heap Leach complex.
Phase 5 will add 39 million tons stacking capacity to the current area and will
enable continuation of stacking at the North facility until June 2011. Budgeted
capital expenditure for this project is US$49 million (R350 million),
consisting of US$35 million to expand the leach pads, and US$14 million to
build associated infrastructure and services required for Phase 5 and
subsequent Phases 6 to 8 of the leach pad complex. Construction of the Phase 5
facility is also expected to begin in the first quarter of calendar 2007, with
commissioning scheduled to be completed by mid calendar 2008.
These expansion projects will maintain the total ore tonnage treated at
approximately 21.6Mtpa, comprising 9.6Mtpa of heap leach and 12.0Mtpa milled
ore. It will enable gold production to be maintained at a level in excess of
700,000 ounces per annum until 2021, minimise the sub-optimal processing of ore
by improving the overall recovery and decrease the processing unit operating
cost through economies of scale.
The improved recovery from CIL will ultimately result in an additional
1 million ounces of recovered gold over the life of the mine.
Terence Goodlace to head up Gold Fields operations in South Africa
On 9 January 2007 it was announced that Mr. Terence Goodlace would replace the
late Mr. Brendan Walker as head of its South African operations, with immediate
effect. Mr. Walker was tragically killed in a car accident on 30 December 2006.
Brendan was associated with Gold Fields his entire career. He was
appointed as an executive vice president and head of South African operations
on 1 March 2006.
Mr. Goodlace was previously head of Gold Fields` international operations.
Terence`s appointment will ensure stability and continuity at a time when we
face significant new challenges in South Africa. Terence, who is well known to
and respected by the South African operations, has a deep insight into and
understanding of the many and complex challenges facing our operations. He has
filled various operational positions in the Group with distinction over the
past 20 years and is a longstanding member of the Gold Fields Executive
Committee. Before becoming head of the international operations he was head of
strategic planning for the Group.
Gold Fields` South African operations include the Beatrix, Driefontein and
Kloof gold mines, as well as the recently acquired South Deep gold mine.
Mr. Peter McArdle, currently head of technical and strategic planning for the
international operations, will act as head of international operations
while a global search is conducted to fill the position on a permanent
basis.
Dividend
In line with the Company`s policy of paying out 50 per cent of its earnings,
subject to investment opportunities, an interim dividend has been declared
payable to shareholders as follows:
- Interim dividend number 66: 90 SA cents per share
- Last date to trade cum-dividend: Friday, 9 February 2007
- Sterling & US dollar conversion date: Monday, 12 February 2007
- Trading commences ex-dividend: Monday, 12 February 2007
- Record date: Friday, 16 February 2007
- Payment date: Monday, 19 February 2007
Share certificates may not be dematerialised or rematerialised between Monday,
12 February 2007 and Friday, 16 February 2007, both dates inclusive.
Change in accounting policy Capitalisation of costs relating to Ore Reserve
Development (ORD)
On 1 July 2006, the Group changed its accounting policy on Ore Reserve
Development ("ORD") costs. These costs are now capitalised and amortised over
the period the Group expects to consume the economic benefits relating to ORD.
Previously, ORD costs were expensed. The change in accounting policy has been
applied retrospectively for the earliest comparative period presented in terms
of IAS8 Accounting policies, changes in accounting estimates and errors.
ORD is all off-reef development that allows access to reserves that are
economically recoverable in the future. ORD includes, but is not limited to,
crosscuts, footwalls, return airways and box holes. The cost of developing
access ways and other infrastructure creates for the Group probable economic
benefits that, in combination with other assets at its mining operations,
contribute directly to the future cash inflows of the Group. The change in
accounting policy will therefor allow for improved financial reporting and will
align the Group`s policy with those of its global industry peers.
The effect of the change in accounting policy for the last 3 years is an after
tax credit to earnings of:
F2006 - R81.5 million
F2005 - R100.7 million
F2004 - R363.9 million
The impact of the change in accounting policy for the December 2006 quarter is
a credit to earnings of R40.0 million. The credit to earnings in the September
2006 quarter amounted to R49.7 million. For the December 2005 quarter the
impact was a credit to earnings of R22.3 million.
The corresponding entry for the above adjustments was to increase property,
plant and equipment and deferred tax liabilities.
Outlook
Gold production for the December quarter should be between 2 and 4 per cent
higher due to an increase at the Australian operations, especially Agnew, and
additional gold from South Deep`s first full quarter. This will be partially
offset by the reduction at Choco 10. Cash costs in rand terms should be similar
quarter on quarter.
Basis of accounting
The unaudited results for the quarter and six months have been prepared on the
International Financial Reporting Standards (IFRS) basis. The detailed
financial, operational and development results for the December 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 financial year
other than the change in accounting policy referred to.
I.D. Cockerill
Chief Executive Officer
25 January 2007
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand Quarter
Restated
December September December
2006 2006 2005
Revenue 4,854.4 4,731.9 3,478.8
Operating costs 2,974.7 2,763.6 2,349.0
Gold inventory change (89.7) (18.3) (20.6)
Operating profit 1,969.4 1,986.6 1,150.4
Amortisation and depreciation 745.1 680.7 535.1
Net operating profit 1,224.3 1,305.9 615.3
Finance income 237.0 13.8 17.8
- Net interest (paid)/received (26.6) 16.7 16.8
- Gain/(loss) on foreign debt, net of
cash 263.6 (2.9) 1.0
Loss on financial instruments (19.2) (9.4) (18.8)
Other expenses (63.9) (28.7) (29.0)
Exploration (64.9) (65.6) (54.1)
Profit before tax and exceptional items 1,313.3 1,216.0 531.2
Exceptional gain 7.8 8.7 1.8
Profit before taxation 1,321.1 1,224.7 533.0
Mining and income taxation 480.2 464.2 211.2
- Normal taxation 259.4 251.7 121.2
- Deferred taxation 220.8 212.5 90.0
Net profit 840.9 760.5 321.8
Attributable to:
- Ordinary shareholders 766.8 697.8 284.2
- Minority shareholders 74.1 62.7 37.6
Exceptional items:
Profit on sale of investments 4.7 0.4 -
Profit on sale of assets 2.8 8.3 -
Other 0.3 - 1.8
Total exceptional items 7.8 8.7 1.8
Taxation (2.7) (3.1) (0.6)
Net exceptional items after tax and
minorities 5.1 5.6 1.2
Net earnings 766.8 697.8 284.2
Net earnings per share (cents) 148 141 58
Headline earnings 761.7 692.2 283.0
Headline earnings per share (cents) 147 140 57
Diluted earnings per share (cents) 147 141 57
Net earnings excluding gains and losses
on financial instruments 563.6 701.7 296.9
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 108 142 60
(cents)
Gold sold - managed kg 33,598 33,315 34,381
Gold price received R/kg 144,485 142,035 101,184
Total cash costs R/kg 83,707 79,862 66,054
South African Rand
Six months to
Restated
December December
2006 2005
Revenue 9,586.3 6,501.3
Operating costs 5,738.3 4,623.0
Gold inventory change (108.0) (9.7)
Operating profit 3,956.0 1,888.0
Amortisation and depreciation 1,425.8 1,033.9
Net operating profit 2,530.2 854.1
Finance income 250.8 17.7
- Net interest (paid)/received (9.9) 17.6
- Gain/(loss) on foreign debt, net of cash 260.7 0.1
Loss on financial instruments (28.6) (27.6)
Other expenses (92.6) (47.8)
Exploration (130.5) (120.3)
Profit before tax and exceptional items 2,529.3 676.1
Exceptional gain 16.5 4.5
Profit before taxation 2,545.8 680.6
Mining and income taxation 944.4 269.0
- Normal taxation 511.1 195.2
- Deferred taxation 433.3 73.8
Net profit 1,601.4 411.6
Attributable to:
- Ordinary shareholders 1,464.6 348.5
- Minority shareholders 136.8 63.1
Exceptional items:
Profit on sale of investments 5.1 1.8
Profit on sale of assets 11.1 -
Other 0.3 2.7
Total exceptional items 16.5 4.5
Taxation (5.8) (1.2)
Net exceptional items after tax and minorities 10.7 3.3
Net earnings 1,464.6 348.5
71
Net earnings per share (cents) 289
Headline earnings 1,453.9 345.2
Headline earnings per share (cents) 287 70
Diluted earnings per share (cents) 288 70
Net earnings excluding gains and losses on financial
instruments and foreign debt, net of cash 1,265.3 365.7
and exceptional items
Net earnings per share excluding gains and losses on
financial instruments and foreign debt, net of
cash and exceptionl items 250 74
(cents)
Gold sold - managed kg 66,913 67,353
Gold price received R/kg 143,265 96,526
Total cash costs R/kg 81,793 66,619
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
United States Dollars Quarter
Restated
December September December
2006 2006 2005
Revenue 657.6 666.5 533.5
Operating costs 403.4 389.2 360.3
Gold inventory change (12.3) (2.6) (3.2)
Operating profit 266.5 279.9 176.4
Amortisation and depreciation 101.0 95.9 82.0
Net operating profit 165.5 184.0 94.4
Finance income 32.6 2.0 2.7
- Net interest (paid)/received (3.8) 2.4 2.6
- Gain/(loss) on foreign debt, net of
cash 36.4 (0.4) 0.1
Loss on financial instruments (2.7) (1.3) (2.9)
Other expenses (8.7) (4.1) (4.4)
Exploration (8.7) (9.3) (8.3)
Profit before tax and exceptional items 178.0 171.3 81.5
Exceptional gain 1.1 1.2 0.3
Profit before taxation 179.1 172.5 81.8
Mining and income taxation 65.0 65.4 32.4
- Normal taxation 35.1 35.5 18.6
- Deferred taxation 29.9 29.9 13.8
Net profit 114.1 107.1 49.4
Attributable to:
- Ordinary shareholders 104.0 98.3 43.6
- Minority shareholders 10.1 8.8 5.8
Exceptional items:
Profit on sale of investments 0.7 - -
Profit on sale of assets 0.3 1.2 -
Other 0.1 - 0.3
Total exceptional items 1.1 1.2 0.3
Taxation (0.4) (0.4) (0.1)
Net exceptional items after tax and
minorities 0.7 0.8 0.2
Net earnings 104.0 98.3 43.6
Net earnings per share (cents) 20 20 9
Headline earnings 103.3 97.5 43.4
Headline earnings per share (cents) 20 20 9
Diluted earnings per share (cents) 20 20 9
Net earnings excluding gains and losses
on financial instruments and foreign 76.0 98.8 45.6
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 15 20 9
(cents)
South African rand/United States dollar
conversion rate 7.38 7.10 6.53
South African rand/Australian dollar
conversion rate 5.66 5.38 4.88
Gold sold - managed ozs(000) 1,080 1,071 1,105
Gold price received $/oz 609 622 482
Total cash costs $/oz 353 350 315
United States Dollars Six months to
Restated
December December
2006 2005
Revenue 1,324.1 997.1
Operating costs 792.6 709.0
Gold inventory change (14.9) (1.5)
Operating profit 546.4 289.6
Amortisation and depreciation 196.9 158.6
Net operating profit 349.5 131.0
Finance income 34.6 2.7
- Net interest (paid)/received (1.4) 2.7
- Gain/(loss) on foreign debt, net of cash 36.0 -
Loss on financial instruments (4.0) (4.2)
Other expenses (12.8) (7.3)
Exploration (18.0) (18.5)
Profit before tax and exceptional items 349.3 103.7
Exceptional gain 2.3 0.7
Profit before taxation 351.6 104.4
Mining and income taxation 130.4 41.3
- Normal taxation 70.6 29.9
- Deferred taxation 59.8 11.4
Net profit 221.2 63.1
Attributable to:
- Ordinary shareholders 202.3 53.4
- Minority shareholders 18.9 9.7
Exceptional items:
Profit on sale of investments 0.7 0.3
Profit on sale of assets 1.5 -
Other 0.1 0.4
Total exceptional items 2.3 0.7
Taxation (0.8) (0.2)
Net exceptional items after tax and minorities 1.5 0.5
Net earnings 202.3 53.4
Net earnings per share (cents) 40 11
Headline earnings 200.8 52.9
Headline earnings per share (cents) 40 11
Diluted earnings per share (cents) 40 11
Net earnings excluding gains and losses on financial
instruments and foreign debt, net of cash and 174.8 56.1
exceptional items
Net earnings per share excluding gains and losses on
financial
instruments and foreign debt, net of cash and
exceptional items 35 11
(cents)
South African rand/United States dollar conversion
rate 7.24 6.52
South African rand/Australian dollar conversion rate 5.52 4.92
Gold sold - managed ozs
(000) 2,151 2,165
Gold price received $/oz 615 460
Total cash costs $/oz 351 318
Balance sheet
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand
Restated
December June
2006 2006
Property, plant and equipment 43,362.7 24,069.5
Non-current assets 550.4 484.0
Investments 1,838.9 2,483.9
Current assets 6,111.0 4,351.2
- Other current assets 4,698.5 2,733.7
- Cash and deposits 1,412.5 1,617.5
Total assets 51,863.0 31,388.6
Shareholders` equity 27,764.3 19,851.5
Deferred taxation 3,551.2 5,454.7
Long-term loans 2,177.9 2,021.6
Environmental rehabilitation provisions 1,127.6 1,079.3
Post-retirement health care provisions 22.0 18.0
Current liabilities 17,220.0 2,963.5
- Other current liabilities 8,446.6 2,641.8
- Current portion of long-term loans 8,773.4 321.7
Total equity and liabilities 51,863.0 31,388.6
South African rand/US dollar conversion rate
South African rand/Australian dollar conversion rate
United States Dollars
Restated
December June
2006 2006
Property, plant and equipment 6,212.4 3,239.5
Non-current assets 78.9 65.1
Investments 263.5 334.3
Current assets 875.5 585.6
- Other current assets 673.1 367.9
- Cash and deposits 202.4 217.7
Total assets 7,430.3 4,224.5
Shareholders` equity 3,977.7 2,671.8
Deferred taxation 508.8 734.1
Long-term loans 312.0 272.1
Environmental rehabilitation provisions 161.5 145.3
Post-retirement health care provisions 3.2 2.4
Current liabilities 2,467.1 398.8
- Other current liabilities 1,210.2 355.5
- Current portion of long-term loans 1,256.9 43.3
Total equity and liabilities 7,430.3 4,224.5
South African rand/US dollar conversion rate 6.98 7.43
South African rand/Australian dollar conversion rate 5.47 5.44
Condensed statement of changes in equity International Financial Reporting
Standards Basis Figures are in millions unless otherwise stated
South African Rand
Restated
December December
2006 2005
Balance at the beginning of the financial year 19,851.5 16,534.1
Effect of change in accounting policy -
capitalisation of ORD costs - 464.6
Issue of share capital 28.4 0.6
Increase in share premium 7,164.5 5.8
Marked to market valuation of listed investments 156.2 234.2
Dividends paid (545.4) (196.8)
Increase in share-based payment reserve 38.1 31.2
Profit attributable to ordinary shareholders 1,464.6 348.5
Profit attributable to minority shareholders 136.8 63.1
Decrease in minority interests (121.4) (66.6)
Currency translation adjustment and other (409.0) (607.6)
Balance as at the end of December 27,764.3 16,811.1
United States Dollars
Restated
December December
2006 2005
Balance at the beginning of the financial year 2,671.8 2,467.8
Effect of change in accounting policy -
capitalisation of ORD costs - 69.3
Issue of share capital 4.1 0.1
Increase in share premium 1,026.4 0.9
Marked to market valuation of listed investments 22.4 35.9
Dividends paid (78.1) (29.4)
Increase in share-based payment reserve 5.5 4.9
Profit attributable to ordinary shareholders 202.3 53.4
Profit attributable to minority shareholders 18.9 9.7
Decrease in minority interests (13.0) (10.5)
Currency translation adjustment and other 117.4 37.0
Balance as at the end of December 3,977.7 2,639.1
Reconciliation of quarterly headline earnings with net earnings International
Financial Reporting Standards Basis Figures are in millions unless otherwise
stated
South African Rand
Restated
December September December
2006 2006 2005
Net earnings 766.8 697.8 284.2
Profit on sale of investments (4.7) (0.4) -
Taxation effect of profit on sale of
investments - - -
Profit on sale of assets (2.8) (8.3) -
Taxation effect on profit on sale of
assets 2.7 3.1 -
Other after tax adjustments (0.3) - (1.2)
Headline earnings 761.7 692.2 283.0
Headline earnings per share - cents 147 140 57
Based on headline earnings as given
above divided by
517,356,586 (September 2006 -
495,505,475 and December
2005 - 492,600,779) being the weighted
average number of
ordinary shares in issue for the period
United States Dollars
Restated
December September December
2006 2006 2005
Net earnings 104.0 98.3 43.6
Profit on sale of investments (0.7) - -
Taxation effect of profit on sale of
investments - - -
Profit on sale of assets (0.3) (1.2) -
Taxation effect on profit on sale of
assets 0.4 0.4 -
Other after tax adjustments (0.1) - (0.2)
Headline earnings 103.3 97.5 43.4
Headline earnings per share - cents 20 20 9
Based on headline earnings as given
above divided by
517,356,586 (September 2006 -
495,505,475 and December
2005 - 492,600,779) being the weighted
average number of
ordinary shares in issue for the period
Cash flow statement
International Financial Reporting Standards Basis Figures are in millions
unless otherwise stated
South African Rand
Quarter
Restated
December September December
2006 2006 2005
Cash flows from operating activities 1,381.2 1,609.3 749.2
Profit before tax and exceptional
items 1,313.3 1,216.0 531.2
Exceptional items 7.8 8.7 1.8
Amortisation and depreciation 745.1 680.7 535.1
Change in working capital (320.9) 9.9 (266.4)
Taxation paid (85.6) (314.8) (57.1)
Other non-cash items (278.5) 8.8 4.6
Dividends paid - (555.9) -
Ordinary shareholders - (545.4) -
Minority shareholders in subsidiaries - (10.5) -
Cash flows from investing activities (10,135.8) (1,307.2) (622.1)
Capital expenditure - additions (1,376.0) (1,188.0) (594.3)
Capital expenditure - proceeds on
disposal 2.9 8.4 3.6
Purchase of subsidiaries (8,676.8) - -
Purchase of investments (77.5) (121.4) (26.8)
Proceeds on the disposal of
investments 6.9 2.2 -
Environmental and post-retirement
health care payments (15.3) (8.4) (4.6)
Cash flows from financing activities 9,016.4 (168.9) 6.4
Loans received 9,057.9 - -
Loans repaid - (155.6) -
Minority shareholders loans received (44.6) (45.5) (66.6)
Shares issued 3.1 32.2 73.0
Net cash inflow/(outflow) 261.8 (422.7) 133.5
Translation adjustment (73.2) 29.1 4.1
Cash at beginning of period 1,223.9 1,617.5 2,799.6
Cash at end of period 1,412.5 1,223.9 2,937.2
Six months to
Restated
December December
2006 2005
Cash flows from operating activities 2,990.5 1,235.3
Profit before tax and exceptional items 2,529.3 676.1
Exceptional items 16.5 4.5
Amortisation and depreciation 1,425.8 1,033.9
Change in working capital (311.0) (386.8)
Taxation paid (400.4) (134.8)
Other non-cash items (269.7) 42.4
Dividends paid (555.9) (196.8)
Ordinary shareholders (545.4) (196.8)
Minority shareholders in subsidiaries (10.5) -
Cash flows from investing activities (11,443.0) (1,136.0)
Capital expenditure - additions (2,564.0) (1,102.8)
Capital expenditure - proceeds on disposal 11.3 7.8
Purchase of subsidiaries (8,676.8) -
Purchase of investments (198.9) (38.9)
Proceeds on the disposal of investments 9.1 8.4
Environmental and post-retirement health care
payments (23.7) (10.5)
Cash flows from financing activities 8,847.5 (200.2)
Loans received 9,057.9 -
Loans repaid (155.6) (140.0)
Minority shareholders loans received (90.1) (66.6)
Shares issued 35.3 6.4
Net cash inflow/(outflow) (160.9) (297.7)
Translation adjustment (44.1) (140.1)
Cash at beginning of period 1,617.5 3,375.0
Cash at end of period 1,412.5 2,937.2
United States Dollars Quarter
Restated
December September December
2006 2006 2005
Cash flows from operating activities 189.8 226.7 119.3
Profit before tax and exceptional items 178.0 171.3 81.5
Exceptional items 1.1 1.2 0.3
Amortisation and depreciation 101.0 95.9 82.0
Change in working capital (44.4) 1.4 (40.8)
Taxation paid (7.4) (44.3) (4.4)
Other non-cash items (38.5) 1.2 0.7
Dividends paid - (78.3) -
Ordinary shareholders - (76.8) -
Minority shareholders in subsidiaries - (1.5) -
Cash flows from investing activities (1,396.4) (184.1) (95.9)
Capital expenditure - additions (186.8) (167.3) (91.2)
Capital expenditure - proceeds on
disposal 0.4 1.2 0.1
Purchase of subsidiaries (1,198.5) - -
Purchase of investments (10.4) (17.1) (4.1)
Proceeds on the disposal of investments 1.0 0.3 -
Environmental and post-retirement
health care payments (2.1) (1.2) (0.7)
Cash flows from financing activities 1,261.4 (23.8) 0.7
Loans received 1,265.7 - -
Loans repaid 0.4 (21.9) -
Minority shareholders loans received (5.1) (6.4) (10.5)
Shares issued 0.4 4.5 11.2
Net cash inflow/(outflow) 54.8 (59.5) 24.1
Translation adjustment (13.4) 2.8 (5.3)
Cash at beginning of period 161.0 217.7 442.3
Cash at end of period 202.4 161.0 461.1
United States Dollars Six months to
Restated
December December
2006 2005
Cash flows from operating activities 416.5 194.5
Profit before tax and exceptional items 349.3 103.7
Exceptional items 2.3 0.7
Amortisation and depreciation 196.9 158.6
Change in working capital (43.0) (59.3)
Taxation paid (51.7) (15.7)
Other non-cash items (37.3) 6.5
Dividends paid (78.3) (29.4)
Ordinary shareholders (76.8) (29.4)
Minority shareholders in subsidiaries (1.5) -
Cash flows from investing activities (1,580.5) (174.3)
Capital expenditure - additions (354.1) (169.2)
Capital expenditure - proceeds on disposal 1.6 1.2
Purchase of subsidiaries (1,198.5) -
Purchase of investments (27.5) (6.0)
Proceeds on the disposal of investments 1.3 1.3
Environmental and post-retirement health care
payments (3.3) (1.6)
Cash flows from financing activities 1,237.6 (31.0)
Loans received 1,265.7 -
Loans repaid (21.5) (21.5)
Minority shareholders loans received (11.5) (10.5)
Shares issued 4.9 1.0
Net cash inflow/(outflow) (4.7) (40.2)
Translation adjustment (10.6) (2.4)
Cash at beginning of period 217.7 503.7
Cash at end of period 202.4 461.1
Hedging / Derivatives
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 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 December 2006
Western Areas Limited Gold Derivative Structure
The existing option positions are detailed in the table below:
US Dollar Denominated Gold Call and Put Options
Year ended 30 June
2007 2008
Strike Strike
Notional Price Notional Price
Amount (US$/oz) Amount (US$/oz)
Long Put Option 204,516 288.20 214,224 288.20
Short Call Option 205,572 288.70 164,784 288.70
Long Call Option 85,392 323.70 88,980 333.70
Short Call Option 63,252 348.70 65,916 363.70
2009 2010
Strike Strike
Notional Price Notional Price
Amount (US$/oz) Amount (US$/oz)
Long Put Option 209,436 293.20 213,960 303.20
Short Call Option 161,100 293.70 164,580 303.70
Long Call Option 87,000 348.70 88,872 358.70
Short Call Option 64,440 378.70 65,832 393.70
2011 2012
Strike Strike
Notional Price Notional Price
Amount (US$/oz) Amount (US$/oz)
Long Put Option 200,436 313.20 205,920 313.20
Short Call Option 149,808 313.70 158,400 313.70
Long Call Option 83,256 373.70 85,536 398.70
Short Call Option 61,668 408.70 63,360 423.70
2013 2014
Strike Strike
Notional Price Notional Price
Amount (US$/oz) Amount (US$/oz)
Long Put Option 205,056 323.20 196,332 333.20
Short Call Option 157,740 323.70 151,032 333.70
Long Call Option 85,188 413.70 81,552 428.70
Short Call Option 63,096 438.70 60,408 453.70
The marked to market valuation of all transactions making up the positions in
the above table was a negative R2,673.4 million (US$383.4 million). The value
was based on a US dollar gold price of US$634.22/oz and an exchange rate of
US$/ZAR 6.9732 and the prevailing interest rates and volatilities at the time.
The Option premium payable is detailed in the table below:
2007 2008 2009 2010 2011 2012
Deferred Premium (US$ - 000`s) 25,000 25,000 25,000 25,000 25,000 25,000
2013 2014
Deferred Premium (US$ - 000`s) 25,000 12,500
The marked to market valuation of all transactions making up the positions in
the above table was a negative R1,092.0 million (US$156.6 million). The value
was based on an exchange rate of US$/ZAR 6.9732 and the prevailing interest
rates and volatilities at the time.
Gold purchases - Gold ounces 275,000 at an average of US$627.9 per ounce As
part of the close-out of the WAL hedge book, WAL accumulated the delta in the
spot gold market beginning on 16 December 2006. The marked to market value of
all transactions making up the position in the above position was a positive
R18.2 million (US$2.6 million). The value was based on an exchange rate of US
dollar/Rand 6.9750 and the spot US dollar gold price of US$620.80 and the
prevailing interest rates an volatility at the time. The spot purchases were
rolled to mature on 22 January 2007. Subsequently the position was rolled to
mature on 30 January 2007.
US Dollars / Australian Dollars call options
Year ended 30 June 2007
Australian dollar call options:
Amount (US dollars) - 000`s 25,000
Average strike price - (US$/A$) 0.7670
The marked to market value of all transactions making up the positions in the
above table was a positive US$0.5 million. This was based on an exchange rate
of A$/US$ 0.7836. The value was based on the prevailing interest rates and
volatilities at the time. This derivative has since been matured resulting in a
cash flow of US$0.6 million.
US Dollars / Rand forward purchases
Forward purchases: 2007
Amount (US Dollars) - 000`s 30,000
Average rate - (ZAR/US$) 7.3002
The marked to market value of all transactions making up the positions in the
above table was a negative R5.7 million (US$0.8 million). The value was based
on an exchange rate of US$6.9750 and the prevailing interest rates and
volatilities at the time. The forward purchases of US$30 million matured on 5
December 2006. These were extended to mature on 6 June 2007, resulting in a
cash inflow of R9.6 million.
Diesel Hedge
On 3 July 2006, Gold Fields Ghana purchased a one year Asian style (average
monthly price) call option in respect of 58.8 million litres of diesel, settled
monthly, to protect against adverse energy price movements. The call option
resulted in a premium of US$2.5 million, paid upfront, at a strike price of
US$0.5716 per litre (US$676.20 per metric ton). This equates to US$73.89 per
barrel brent crude. The price at the end of December was US$62.06 per barrel
and US$0.4595 cents per litre respectively. The balance of the unexpired
options are given below:
Year ended 30 June 2007
Forward purchases:
Amount (litres) - 000`s 34,300
Strike price - US$/litre 0.5716
Conversion factor from US dollar per metric ton to US dollar cents per litre =
1,183 The marked to market value of all transactions making up the position
above was a positive US$0.1 million. The value was based on an IPE Gasoil price
of US$0.4722 per litre (US$558.61 per metric ton). The value was based on the
prevailing interest rates and volatilities at the time.
Total cash costs
Gold Institute Industry Standard
All figures are in Rand millions unless otherwise stated
South African Operations
Total Mine
Operations Total Driefontein Kloof
Operating costs(1)
December 2006 2,974.7 1,794.7 660.5 629.1
September 2006 2,763.6 1,644.0 650.0 615.5
Financial year to date 5,738.3 3,438.7 1,310.5 1,244.6
Gold-in-process and
inventory change*
December 2006 (69.4) (21.8) - -
September 2006 (13.3) - - -
Financial year to date (82.7) (21.8) - -
Less:
Rehabilitation costs
December 2006 8.9 6.4 3.0 2.0
September 2006 8.7 6.4 3.0 2.0
Financial year to date 17.6 12.8 6.0 4.0
Production taxes
December 2006 6.5 6.5 2.5 2.5
September 2006 7.2 7.2 3.3 2.5
Financial year to date 13.7 13.7 5.8 5.0
General and admin
December 2006 132.8 71.0 28.9 24.5
September 2006 123.1 71.7 29.0 24.1
Financial year to date 255.9 142.7 57.9 48.6
Exploration costs
December 2006 7.8 - - -
September 2006 8.8 - - -
Financial year to date 16.6 - - -
Cash operating costs
December 2006 2,749.3 1,689.0 626.1 600.1
September 2006 2,602.5 1,558.7 614.7 586.9
Financial year to date 5,351.8 3,247.7 1,240.8 1,187.0
Plus:
Production taxes
December 2006 6.5 6.5 2.5 2.5
September 2006 7.2 7.2 3.3 2.5
Financial year to date 13.7 13.7 5.8 5.0
Royalties
December 2006 56.6 - - -
September 2006 50.9 - - -
Financial year to date 107.5 - - -
TOTAL CASH COSTS(2)
December 2006 2,812.4 1,695.5 628.6 602.6
September 2006 2,660.6 1,565.9 618.0 589.4
Financial year to date 5,473.0 3,261.4 1,246.6 1,192.0
Plus:
Amortisation*
December 2006 690.9 373.7 122.4 152.1
September 2006 643.8 342.8 119.8 139.5
Financial year to date 1,334.7 716.5 242.2 291.6
Rehabilitation
December 2006 8.9 6.4 3.0 2.0
September 2006 8.7 6.4 3.0 2.0
Financial year to date 17.6 12.8 6.0 4.0
TOTAL PRODUCTION
COSTS(3)
December 2006 3,512.2 2,075.6 754.0 756.7
September 2006 3,313.1 1,915.1 740.8 730.9
Financial year to date 6,825.3 3,990.7 1,494.8 1,487.6
Gold sold
- thousand ounces
December 2006 1,080.2 649.3 247.3 230.6
September 2006 1,071.1 649.3 257.5 242.7
Financial year to date 2,151.3 1,298.6 504.8 473.3
TOTAL CASH COSTS
- US$/oz
December 2006 353 354 344 354
September 2006 350 340 338 342
Financial year to date 351 347 341 348
TOTAL CASH COSTS
- R/kg
December 2006 83,707 83,952 81,721 84,021
September 2006 79,862 77,543 77,163 78,077
Financial year to date 81,793 80,748 79,396 80,973
TOTAL PRODUCTION
COSTS
- US$/oz
December 2006 441 433 413 445
September 2006 436 415 405 424
Financial year to date 438 424 409 434
International
South African Operations Operations
Ghana
Beatrix South Total Tarkwa
Deep+
Operating costs(1)
December 2006 392.1 113.0 1,180.0 454.4
September 2006 378.5 - 1,119.6 428.5
Financial year to date 770.6 113.0 2,299.6 882.9
Gold-in-process and
inventory change*
December 2006 - (21.8) (47.6) (25.0)
September 2006 - - (13.3) (3.2)
Financial year to date - (21.8) (60.9) (28.2)
Less:
Rehabilitation costs
December 2006 1.4 - 2.5 0.8
September 2006 1.4 - 2.3 0.7
Financial year to date 2.8 - 4.8 1.5
Production taxes
December 2006 1.5 - - -
September 2006 1.4 - - -
Financial year to date 2.9 - - -
General and admin
December 2006 17.6 - 61.8 27.3
September 2006 18.6 - 51.4 23.4
Financial year to date 36.2 - 113.2 50.7
Exploration costs
December 2006 - - 7.8 -
September 2006 - - 8.8 -
Financial year to date - - 16.6 -
Cash operating costs
December 2006 371.6 91.2 1,060.3 401.3
September 2006 357.1 - 1,043.9 401.2
Financial year to date 728.7 91.2 2,104.1 802.5
Plus:
Production taxes
December 2006 1.5 - - -
September 2006 1.4 - - -
Financial year to date 2.9 - - -
Royalties
December 2006 - - 56.6 24.4
September 2006 - - 50.9 23.1
Financial year to date - - 107.5 47.5
TOTAL CASH COSTS(2)
December 2006 373.1 91.2 1,116.9 425.7
September 2006 358.5 - 1,094.7 424.3
Financial year to date 731.6 91.2 2,211.6 850.0
Plus:
Amortisation*
December 2006 89.9 9.3 317.2 66.9
September 2006 83.5 - 301.0 66.5
Financial year to date 173.4 9.3 618.2 133.4
Rehabilitation
December 2006 1.4 - 2.5 0.8
September 2006 1.4 - 2.3 0.7
Financial year to date 2.8 - 4.8 1.5
TOTAL PRODUCTION
COSTS(3)
December 2006 464.4 100.5 1,436.6 493.4
September 2006 443.4 - 1,398.0 491.5
Financial year to date 907.8 100.5 2,834.6 984.9
Gold sold
- thousand ounces
December 2006 149.5 21.9 430.9 178.8
September 2006 149.1 - 421.8 173.6
Financial year to date 298.6 21.9 852.7 352.4
TOTAL CASH COSTS
- US$/oz
December 2006 338 564 351 323
September 2006 339 - 365 344
Financial year to date 338 564 358 333
TOTAL CASH COSTS
- R/kg
December 2006 80,237 133,724 83,338 76,537
September 2006 77,330 - 83,431 78,589
Financial year to date 78,785 133,724 83,384 77,548
TOTAL PRODUCTION
COSTS
- US$/oz
December 2006 421 621 452 374
September 2006 419 - 467 399
Financial year to date 420 621 459 386
International Operations
Ghana Venezuela Australia #
Damang Choco 10 St Ives Agnew
Operating costs(1)
December 2006 165.8 78.4 372.2 109.2
September 2006 142.4 69.6 392.0 87.1
Financial year to date 308.2 148.0 764.2 196.3
Gold-in-process and
inventory change*
December 2006 3.0 (0.2) (14.8) (10.6)
September 2006 7.8 (4.1) (12.4) (1.4)
Financial year to date 10.8 (4.3) (27.2) (12.0)
Less:
Rehabilitation costs
December 2006 - - 1.7 -
September 2006 - - 1.6 -
Financial year to date - - 3.3 -
Production taxes
December 2006 - - - -
September 2006 - - - -
Financial year to date - - - -
General and admin
December 2006 4.4 10.6 15.4 4.1
September 2006 3.7 11.6 9.9 2.8
Financial year to date 8.1 22.2 25.3 6.9
Exploration costs
December 2006 0.7 - 6.4 0.7
September 2006 2.1 - 6.1 0.6
Financial year to date 2.8 - 12.5 1.3
Cash operating costs
December 2006 163.7 67.6 333.9 93.8
September 2006 144.4 53.9 362.0 82.3
Financial year to date 308.1 121.5 695.9 176.1
Plus:
Production taxes
December 2006 - - - -
September 2006 - - - -
Financial year to date - - - -
Royalties
December 2006 6.6 4.0 13.8 7.8
September 2006 6.4 2.1 13.8 5.5
Financial year to date 13.0 6.1 27.6 13.3
TOTAL CASH COSTS(2)
December 2006 170.3 71.6 347.7 101.6
September 2006 150.8 56.0 375.8 87.8
Financial year to date 321.1 127.6 723.5 189.4
Plus:
Amortisation*
December 2006 9.6 13.8 226.9
September 2006 7.1 12.7 214.7
Financial year to date 16.7 26.5 441.6
Rehabilitation
December 2006 - - 1.7
September 2006 - - 1.6
Financial year to date - - 3.3
TOTAL PRODUCTION
COSTS(3)
December 2006 179.9 85.4 677.9
September 2006 157.9 68.7 679.9
Financial year to date 337.8 154.1 1,357.8
Gold sold
- thousand ounces
December 2006 51.6 22.8 124.6 53.0
September 2006 48.5 17.2 123.4 59.2
Financial year to date 100.1 40.0 248.0 112.2
TOTAL CASH COSTS
- US$/oz
December 2006 447 426 378 260
September 2006 438 458 429 209
Financial year to date 443 440 403 233
TOTAL CASH COSTS
- R/kg
December 2006 106,106 100,987 89,706 61,576
September 2006 100,000 104,478 97,941 47,691
Financial year to date 103,148 102,490 93,803 54,254
TOTAL PRODUCTION
COSTS
- US$/oz
December 2006 472 508 517
September 2006 459 561 525
Financial year to date 466 532 521
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 = R7.38 and
US$1 = R7.10 for the December 2006 and September 2006 quarters respectively.
# As a significant portion of the acquisition price was allocated to
tenements of St Ives and Agnew based on endowment ounces and also as these
two Australian operations are entitled to transfer and then off-set tax
losses from one company to another, it is not meaningful to split the income
statement below operating profit.
+ The acquisition of South Deep is effective from 1 December 2006. Therefore,
these results include activities for the month of December only.
Restated total cash cost on the assumption that Ore Reserve Development (ORD)
is fully expensed
South African
Operations
Total Mine
Operations Total
Total cash costs as above December 2006 2,812.4 1,695.5
(ORD capitalised) September 2006 2,660.6 1,565.9
Financial year to date 5,473.0 3,261.4
December 2006 246.2 246.2
Add back ORD September 2006 233.1 233.1
Financial year to date 479.3 479.3
Restated total cash costs# December 2006 3,058.6 1,941.7
September 2006 2,893.7 1,799.0
Financial year to date 5,952.3 3,740.7
Restated total cash costs December 2006 384 405
- US$ per ounce September 2006 381 390
Financial year to date 382 398
Restated total cash costs December 2006 91,035 96,143
- Rand per kilogram September 2006 86,859 89,086
Financial year to date 88,956 92,615
South African
Operations
Driefontein Kloof
Total cash costs as above December 2006 628.6 602.6
(ORD capitalised) September 2006 618.0 589.4
Financial year to date 1,246.6 1,192.0
December 2006 94.3 96.4
Add back ORD September 2006 85.4 87.9
Financial year to date 179.7 184.3
Restated total cash costs# December 2006 722.9 699.0
September 2006 703.4 677.3
Financial year to date 1,426.3 1,376.3
Restated total cash costs December 2006 396 411
- US$ per ounce September 2006 385 393
Financial year to date 390 402
Restated total cash costs December 2006 93,981 97,462
- Rand per kilogram September 2006 87,826 89,720
Financial year to date 90,841 93,492
South African
Operations
South
Beatrix Deep+
Total cash costs as above December 2006 373.1 91.2
(ORD capitalised) September 2006 358.5 -
Financial year to date 731.6 91.2
December 2006 55.5 -
Add back ORD September 2006 59.8 -
Financial year to date 115.3 -
Restated total cash costs# December 2006 428.6 91.2
September 2006 418.3 -
Financial year to date 846.9 91.2
Restated total cash costs December 2006 388 564
- US$ per ounce September 2006 395 -
Financial year to date 392 564
Restated total cash costs December 2006 92,172 133,724
- Rand per kilogram September 2006 90,229 -
Financial year to date 91,202 133,724
International
Operations
Total
Total cash costs as above December 2006 1,116.9
(ORD capitalised) September 2006 1,094.7
Financial year to date 2,211.6
December 2006 -
Add back ORD September 2006 -
Financial year to date -
Restated total cash costs# December 2006 1,116.9
September 2006 1,094.7
Financial year to date 2,211.6
Restated total cash costs December 2006 351
- US$ per ounce September 2006 365
Financial year to date 358
Restated total cash costs December 2006 83,338
- Rand per kilogram September 2006 83,431
Financial year to date 83,384
#Restated total cash costs relates to total cash costs prior to the change in
accounting policy.
+ The acquisition of South Deep is effective from 1 December 2006. Therefore,
these results include activities for the month of December only.
Operating and financial results
South African Rand Total Mine
Operations
Operating Results
Ore milled/treated (000 tons) December 2006 13,109
September 2006 12,858
Financial year to date 25,967
Yield (grams per ton) December 2006 2.6
September 2006 2.6
Financial year to date 2.6
Gold produced (kilograms) December 2006 33,754
September 2006 33,283
Financial year to date 67,037
Gold sold (kilograms) December 2006 33,598
September 2006 33,315
Financial year to date 66,913
Gold price received (Rand per kilogram) December 2006 144,485
September 2006 142,035
Financial year to date 143,265
Total cash costs (Rand per kilogram) December 2006 83,707
September 2006 79,862
Financial year to date 81,793
Total production costs (Rand per kilogram) December 2006 104,536
September 2006 99,448
Financial year to date 102,003
Operating costs (Rand per ton) December 2006 227
September 2006 215
Financial year to date 221
Financial Results (Rand million)
Revenue December 2006 4,854.4
September 2006 4,731.9
Financial year to date 9,586.3
Operating costs December 2006 2,974.7
September 2006 2,763.6
Financial year to date 5,738.3
Gold inventory change December 2006 (89.7)
September 2006 (18.3)
Financial year to date (108.0)
Operating profit December 2006 1,969.4
September 2006 1,986.6
Financial year to date 3,956.0
Amortisation of mining assets December 2006 710.3
September 2006 648.8
Financial year to date 1,359.1
Net operating profit December 2006 1,259.1
September 2006 1,337.8
Financial year to date 2,596.9
Other income/(expense) December 2006 (17.1)
September 2006 (16.8)
Financial year to date (33.9)
Profit before taxation December 2006 1,242.0
September 2006 1,321.0
Financial year to date 2,563.0
Mining and income taxation December 2006 423.2
September 2006 476.9
Financial year to date 900.1
- Normal taxation December 2006 205.3
September 2006 246.3
Financial year to date 451.6
- Deferred taxation December 2006 217.9
September 2006 230.6
Financial year to date 448.5
Profit before exceptional items December 2006 818.8
September 2006 844.1
Financial year to date 1,662.9
Exceptional items December 2006 7.9
September 2006 8.3
Financial year to date 16.2
Net profit December 2006 826.7
September 2006 852.4
Financial year to date 1,679.1
December 2006 822.0
Net profit excluding gains and losses
on financial instruments and foreign
debt and exceptional items September 2006 859.3
Financial year to date 1,681.3
Capital expenditure December 2006 1,025.8
September 2006 821.7
Financial year to date 1,847.5
Planned for next six months to June 2007 2,423.2
South African
Operations
South African Rand Total
Operating Results
Ore milled/treated (000 tons) December 2006 3,778
September 2006 3,679
Financial year to date 7,457
Yield (grams per ton) December 2006 5.4
September 2006 5.5
Financial year to date 5.4
Gold produced (kilograms) December 2006 20,352
September 2006 20,194
Financial year to date 40,546
Gold sold (kilograms) December 2006 20,196
September 2006 20,194
Financial year to date 40,390
Gold price received (Rand per kilogram) December 2006 144,083
September 2006 142,121
Financial year to date 143,102
Total cash costs (Rand per kilogram) December 2006 83,952
September 2006 77,543
Financial year to date 80,748
Total production costs (Rand per kilogram) December 2006 102,773
September 2006 94,835
Financial year to date 98,804
Operating costs (Rand per ton) December 2006 475
September 2006 447
Financial year to date 461
Financial Results (Rand million)
Revenue December 2006 2,909.9
September 2006 2,870.0
Financial year to date 5,789.9
Operating costs December 2006 1,794.7
September 2006 1,644.0
Financial year to date 3,438.7
Gold inventory change December 2006 (21.8)
September 2006 -
Financial year to date (21.8)
Operating profit December 2006 1,137.2
September 2006 1,226.0
Financial year to date 2,363.2
Amortisation of mining assets December 2006 372.7
September 2006 342.8
Financial year to date 715.5
Net operating profit December 2006 763.5
September 2006 883.2
Financial year to date 1,646.7
Other income/(expense) December 2006 (42.9)
September 2006 (26.7)
Financial year to date (69.6)
Profit before taxation December 2006 721.4
September 2006 856.5
Financial year to date 1,577.9
Mining and income taxation December 2006 229.6
September 2006 302.8
Financial year to date 532.4
- Normal taxation December 2006 75.3
September 2006 112.9
Financial year to date 188.2
- Deferred taxation December 2006 154.3
September 2006 189.9
Financial year to date 344.2
Profit before exceptional items December 2006 491.8
September 2006 553.7
Financial year to date 1,045.5
Exceptional items December 2006 2.9
September 2006 8.2
Financial year to date 11.1
Net profit December 2006 494.7
September 2006 561.9
Financial year to date 1,056.6
December 2006 493.0
Net profit excluding gains and losses
on financial instruments and foreign
debt and exceptional items September 2006 556.6
Financial year to date 1,049.6
Capital expenditure December 2006 564.7
September 2006 432.7
Financial year to date 997.4
Planned for next six months to June 2007 1,359.9
South African
Operations
South African Rand
Driefontein
Operating Results
Ore milled/treated (000 tons) December 2006 1,673
September 2006 1,703
Financial year to date 3,376
Yield (grams per ton) December 2006 4.6
September 2006 4.7
Financial year to date 4.7
Gold produced (kilograms) December 2006 7,692
September 2006 8,009
Financial year to date 15,701
Gold sold (kilograms) December 2006 7,692
September 2006 8,009
Financial year to date 15,701
Gold price received (Rand per kilogram) December 2006 144,371
September 2006 141,978
Financial year to date 143,150
Total cash costs (Rand per kilogram) December 2006 81,721
September 2006 77,163
Financial year to date 79,396
Total production costs (Rand per kilogram) December 2006 98,024
September 2006 92,496
Financial year to date 95,204
Operating costs (Rand per ton) December 2006 395
September 2006 382
Financial year to date 388
Financial Results (Rand million)
Revenue December 2006 1,110.5
September 2006 1,137.1
Financial year to date 2,247.6
Operating costs December 2006 660.5
September 2006 650.0
Financial year to date 1,310.5
Gold inventory change December 2006 -
September 2006 -
Financial year to date -
Operating profit December 2006 450.0
September 2006 487.1
Financial year to date 937.1
Amortisation of mining assets December 2006 122.4
September 2006 119.8
Financial year to date 242.2
Net operating profit December 2006 327.6
September 2006 367.3
Financial year to date 694.9
Other income/(expense) December 2006 (10.8)
September 2006 (8.8)
Financial year to date (19.6)
Profit before taxation December 2006 316.8
September 2006 358.5
Financial year to date 675.3
Mining and income taxation December 2006 104.1
September 2006 122.8
Financial year to date 226.9
- Normal taxation December 2006 75.1
September 2006 112.8
Financial year to date 187.9
- Deferred taxation December 2006 29.0
September 2006 10.0
Financial year to date 39.0
Profit before exceptional items December 2006 212.7
September 2006 235.7
Financial year to date 448.4
Exceptional items December 2006 0.8
September 2006 4.5
Financial year to date 5.3
Net profit December 2006 213.5
September 2006 240.2
Financial year to date 453.7
December 2006 213.1
Net profit excluding gains and losses
on financial instruments and foreign
debt and exceptional items September 2006 237.3
Financial year to date 450.4
Capital expenditure December 2006 177.4
September 2006 143.7
Financial year to date 321.1
Planned for next six months to June 2007 496.5
South African
Operations
South African Rand
Kloof
Operating Results
Ore milled/treated (000 tons) December 2006 986
September 2006 992
Financial year to date 1,978
Yield (grams per ton) December 2006 7.3
September 2006 7.6
Financial year to date 7.4
Gold produced (kilograms) December 2006 7,172
September 2006 7,549
Financial year to date 14,721
Gold sold (kilograms) December 2006 7,172
September 2006 7,549
Financial year to date 14,721
Gold price received (Rand per kilogram) December 2006 144,423
September 2006 141,820
Financial year to date 143,088
Total cash costs (Rand per kilogram) December 2006 84,021
September 2006 78,077
Financial year to date 80,973
Total production costs (Rand per kilogram) December 2006 105,508
September 2006 96,821
Financial year to date 101,053
Operating costs (Rand per ton) December 2006 638
September 2006 620
Financial year to date 629
Financial Results (Rand million)
Revenue December 2006 1,035.8
September 2006 1,070.6
Financial year to date 2,106.4
Operating costs December 2006 629.1
September 2006 615.5
Financial year to date 1,244.6
Gold inventory change December 2006 -
September 2006 -
Financial year to date -
Operating profit December 2006 406.7
September 2006 455.1
Financial year to date 861.8
Amortisation of mining assets December 2006 151.3
September 2006 139.5
Financial year to date 290.8
Net operating profit December 2006 255.4
September 2006 315.6
Financial year to date 571.0
Other income/(expense) December 2006 (9.5)
September 2006 (7.3)
Financial year to date (16.8)
Profit before taxation December 2006 245.9
September 2006 308.3
Financial year to date 554.2
Mining and income taxation December 2006 62.9
September 2006 106.9
Financial year to date 169.8
- Normal taxation December 2006 0.1
September 2006 0.1
Financial year to date 0.2
- Deferred taxation December 2006 62.8
September 2006 106.8
Financial year to date 169.6
Profit before exceptional items December 2006 183.0
September 2006 201.4
Financial year to date 384.4
Exceptional items December 2006 -
September 2006 -
Financial year to date -
Net profit December 2006 183.0
September 2006 201.4
Financial year to date 384.4
December 2006 183.0
Net profit excluding gains and losses
on financial instruments and foreign
debt and exceptional items September 2006 201.3
Financial year to date 384.3
Capital expenditure December 2006 190.7
September 2006 183.7
Financial year to date 374.4
Planned for next six months to June 2007 358.6
South African
Operations
South African Rand
Beatrix
Operating Results
Ore milled/treated (000 tons) December 2006 935
September 2006 984
Financial year to date 1,919
Yield (grams per ton) December 2006 5.0
September 2006 4.7
Financial year to date 4.8
Gold produced (kilograms) December 2006 4,650
September 2006 4,636
Financial year to date 9,286
Gold sold (kilograms) December 2006 4,650
September 2006 4,636
Financial year to date 9,286
Gold price received (Rand per kilogram) December 2006 143,398
September 2006 142,860
Financial year to date 143,129
Total cash costs (Rand per kilogram) December 2006 80,237
September 2006 77,330
Financial year to date 78,785
Total production costs (Rand per kilogram) December 2006 99,871
September 2006 95,643
Financial year to date 97,760
Operating costs (Rand per ton) December 2006 419
September 2006 385
Financial year to date 402
Financial Results (Rand million)
Revenue December 2006 666.8
September 2006 662.3
Financial year to date 1,329.1
Operating costs December 2006 392.1
September 2006 378.5
Financial year to date 770.6
Gold inventory change December 2006 -
September 2006 -
Financial year to date -
Operating profit December 2006 274.7
September 2006 283.8
Financial year to date 558.5
Amortisation of mining assets December 2006 89.7
September 2006 83.5
Financial year to date 173.2
Net operating profit December 2006 185.0
September 2006 200.3
Financial year to date 385.3
Other income/(expense) December 2006 (11.3)
September 2006 (10.6)
Financial year to date (21.9)
Profit before taxation December 2006 173.7
September 2006 189.7
Financial year to date 363.4
Mining and income taxation December 2006 67.9
September 2006 73.1
Financial year to date 141.0
- Normal taxation December 2006 0.1
September 2006 -
Financial year to date 0.1
- Deferred taxation December 2006 67.8
September 2006 73.1
Financial year to date 140.9
Profit before exceptional items December 2006 105.8
September 2006 116.6
Financial year to date 222.4
Exceptional items December 2006 2.1
September 2006 3.7
Financial year to date 5.8
Net profit December 2006 107.8
September 2006 120.3
Financial year to date 228.2
December 2006 106.6
Net profit excluding gains and losses
on financial instruments and foreign
debt and exceptional items September 2006 118.0
Financial year to date 224.6
Capital expenditure December 2006 156.1
September 2006 105.3
Financial year to date 261.4
Planned for next six months to June 2007 240.1
South African
Operations
South African Rand
South Deep+
Operating Results
Ore milled/treated (000 tons) December 2006 184
September 2006 -
Financial year to date 184
Yield (grams per ton) December 2006 4.6
September 2006 -
Financial year to date 4.6
Gold produced (kilograms) December 2006 838
September 2006 -
Financial year to date 838
Gold sold (kilograms) December 2006 682
September 2006 -
Financial year to date 682
Gold price received (Rand per kilogram) December 2006 141,935
September 2006 -
Financial year to date 141,935
Total cash costs (Rand per kilogram) December 2006 133,724
September 2006 -
Financial year to date 133,724
Total production costs (Rand per kilogram) December 2006 147,361
September 2006 -
Financial year to date 147,361
Operating costs (Rand per ton) December 2006 614
September 2006 -
Financial year to date 614
Financial Results (Rand million)
Revenue December 2006 96.8
September 2006 -
Financial year to date 96.8
Operating costs December 2006 113.0
September 2006 -
Financial year to date 113.0
Gold inventory change December 2006 (21.8)
September 2006 -
Financial year to date (21.8)
Operating profit December 2006 5.6
September 2006 -
Financial year to date 5.6
Amortisation of mining assets December 2006 9.3
September 2006 -
Financial year to date 9.3
Net operating profit December 2006 (3.7)
September 2006 -
Financial year to date (3.7)
Other income/(expense) December 2006 (11.3)
September 2006 -
Financial year to date (11.3)
Profit before taxation December 2006 (15.0)
September 2006 -
Financial year to date (15.0)
Mining and income taxation December 2006 (5.3)
September 2006 -
Financial year to date (5.3)
- Normal taxation December 2006 -
September 2006 -
Financial year to date -
- Deferred taxation December 2006 (5.3)
September 2006 -
Financial year to date (5.3)
Profit before exceptional items December 2006 (9.7)
September 2006 -
Financial year to date (9.7)
Exceptional items December 2006 -
September 2006 -
Financial year to date -
Net profit December 2006 (9.7)
September 2006 -
Financial year to date (9.7)
December 2006 (9.7)
Net profit excluding gains and losses
on financial instruments and foreign
debt and exceptional items September 2006 -
Financial year to date (9.7)
Capital expenditure December 2006 40.5
September 2006 -
Financial year to date 40.5
Planned for next six months to June 2007 264.7
+ The acquisition of South Deep is effective from 1 December 2006. Therefore,
these results include activities for the month of December only.
Operating and financial results International Operations
South African Rand Ghana
Total Tarkwa Damang
Operating Results
Ore milled/treated (000 tons)
December 2006 9,331 5,588 1,326
September 2006 9,179 5,514 1,317
Financial year to date 18,510 11,102 2,643
Yield (grams per ton)
December 2006 1.4 1.0 1.2
September 2006 1.4 1.0 1.1
Financial year to date 1.4 1.0 1.2
Gold produced (kilograms)
December 2006 13,402 5,562 1,605
September 2006 13,089 5,399 1,508
Financial year to date 26,491 10,961 3,113
Gold sold (kilograms)
December 2006 13,402 5,562 1,605
September 2006 13,121 5,399 1,508
Financial year to date 26,523 10,961 3,113
Gold price received
(Rand per kilogram)
December 2006 145,090 144,966 145,171
September 2006 141,902 142,323 141,976
Financial year to date 143,513 143,664 143,624
Total cash costs
(Rand per kilogram)
December 2006 83,338 76,537 106,106
September 2006 83,431 78,589 100,000
Financial year to date 83,384 77,548 103,148
Total production costs
(Rand per kilogram)
December 2006 107,193 88,709 112,087
September 2006 106,547 91,035 104,708
Financial year to date 106,873 89,855 108,513
Operating costs (Rand per ton)
December 2006 126 81 125
September 2006 122 78 108
Financial year to date 124 80 117
Financial Results (Rand million)
Revenue
December 2006 1,944.5 806.3 233.0
September 2006 1,861.9 768.4 214.1
Financial year to date 3,806.4 1,574.7 447.1
Operating costs
December 2006 1,180.0 454.4 165.8
September 2006 1,119.6 428.5 142.4
Financial year to date 2,299.6 882.9 308.2
Gold inventory change
December 2006 (67.9) (29.1) 2.9
September 2006 (18.3) (4.5) 7.9
Financial year to date (86.2) (33.6) 10.7
Operating profit
December 2006 832.4 381.0 64.3
September 2006 760.6 344.4 63.8
Financial year to date 1,593.0 725.4 128.1
Amortisation of mining assets
December 2006 337.6 71.0 9.8
September 2006 306.0 67.8 7.0
Financial year to date 643.6 138.8 16.8
Net operating profit
December 2006 494.8 310.0 54.5
September 2006 454.6 276.6 56.8
Financial year to date 949.4 586.6 111.3
Other income/(expense)
December 2006 25.8 2.1 0.5
September 2006 9.9 (7.4) 0.2
Financial year to date 35.7 (5.3) 0.7
Profit before taxation
December 2006 520.6 312.1 55.0
September 2006 464.5 269.2 57.0
Financial year to date 985.1 581.3 112.0
Mining and income taxation
December 2006 193.6 95.5 21.3
September 2006 174.1 86.2 19.2
Financial year to date 367.7 181.7 40.5
- Normal taxation
December 2006 130.0 85.3 11.0
September 2006 133.4 91.1 8.9
Financial year to date 263.4 176.4 19.9
- Deferred taxation
December 2006 63.6 10.2 10.3
September 2006 40.7 (4.9) 10.3
Financial year to date 104.3 5.3 20.6
Profit before exceptional items
December 2006 327.0 216.6 33.7
September 2006 290.4 183.0 37.8
Financial year to date 617.4 399.6 71.5
Exceptional items
December 2006 5.0 - -
September 2006 0.1 - -
Financial year to date 5.1 - -
Net profit
December 2006 332.0 216.6 33.7
September 2006 290.5 183.0 37.8
Financial year to date 622.5 399.6 71.5
Net profit excluding gains and
losses on financial instruments
and foreign debt and
exceptional items
December 2006 329.0 217.5 34.1
September 2006 302.7 191.0 40.6
Financial year to date 631.7 408.5 74.7
Capital expenditure
December 2006 461.1 188.5 52.5
September 2006 389.0 90.2 48.1
Financial year to date 850.1 278.7 100.6
Planned for next six months
to June 2007 1,063.3 487.9 113.8
South African Rand International Operations
Venezuela Australia #
Choco 10 St Ives Agnew
Operating Results
Ore milled/treated (000 tons)
December 2006 357 1,742 318
September 2006 306 1,698 344
Financial year to date 663 3,440 662
Yield (grams per ton)
December 2006 2.0 2.2 5.2
September 2006 1.7 2.3 5.4
Financial year to date 1.8 2.2 5.3
Gold produced (kilograms)
December 2006 709 3,876 1,650
September 2006 504 3,837 1,841
Financial year to date 1,213 7,713 3,491
Gold sold (kilograms)
December 2006 709 3,876 1,650
September 2006 536 3,837 1,841
Financial year to date 1,245 7,713 3,491
Gold price received
(Rand per kilogram)
December 2006 142,877 144,788 147,091
September 2006 136,940 141,725 142,423
Financial year to date 140,321 143,265 144,629
Total cash costs
(Rand per kilogram)
December 2006 100,987 89,706 61,576
September 2006 104,478 97,941 47,691
Financial year to date 102,490 93,803 54,254
Total production costs
(Rand per kilogram)
December 2006 120,451 122,675
September 2006 128,172 119,743
Financial year to date 123,775 121,189
Operating costs (Rand per ton)
December 2006 220 214 343
September 2006 228 231 253
Financial year to date 223 222 297
Financial Results (Rand million)
Revenue
December 2006 101.3 561.2 242.7
September 2006 73.4 543.8 262.2
Financial year to date 174.7 1,105.0 504.9
Operating costs
December 2006 78.4 372.2 109.2
September 2006 69.6 392.0 87.1
Financial year to date 148.0 764.2 196.3
Gold inventory change
December 2006 (0.3) (23.9) (17.5)
September 2006 (4.1) (19.8) 2.2
Financial year to date (4.4) (43.7) (15.3)
Operating profit
December 2006 23.2 212.9 151.0
September 2006 7.9 171.6 172.9
Financial year to date 31.1 384.5 323.9
Amortisation of mining assets
December 2006 13.9 242.9
September 2006 12.7 218.5
Financial year to date 26.6 461.4
Net operating profit
December 2006 9.3 121.0
September 2006 (4.8) 126.0
Financial year to date 4.5 247.0
Other income/(expense)
December 2006 1.8 21.4
September 2006 6.1 11.0
Financial year to date 7.9 32.4
Profit before taxation
December 2006 11.1 142.4
September 2006 1.3 137.0
Financial year to date 12.4 279.4
Mining and income taxation
December 2006 17.5 59.3
September 2006 14.1 54.6
Financial year to date 31.6 113.9
- Normal taxation
December 2006 12.1 21.6
September 2006 14.1 19.3
Financial year to date 26.2 40.9
- Deferred taxation
December 2006 5.4 37.7
September 2006 - 35.3
Financial year to date 5.4 73.0
Profit before exceptional items
December 2006 (6.4) 83.1
September 2006 (12.8) 82.4
Financial year to date (19.2) 165.5
Exceptional items
December 2006 - 5.0
September 2006 - 0.1
Financial year to date - 5.1
Net profit
December 2006 (6.4) 88.1
September 2006 (12.8) 82.5
Financial year to date (19.2) 170.6
Net profit excluding gains and
losses on financial instruments
and foreign debt and
exceptional items
December 2006 (6.4) 83.8
September 2006 (12.8) 83.9
Financial year to date (19.2) 167.7
Capital expenditure
December 2006 37.9 126.3 55.9
September 2006 77.2 116.3 57.2
Financial year to date 115.1 242.6 113.1
Planned for next six months
to June 2007 91.4 257.7 112.5
Operating and financial results
South African Operations
United States Dollars Total Mine
Operations Total Driefontein
Operating Results
Ore milled/treated (000 tons)
December 2006 13,109 3,778 1,673
September 2006 12,858 3,679 1,703
Financial year to date 25,967 7,457 3,376
Yield (ounces per ton)
December 2006 0.083 0.173 0.148
September 2006 0.083 0.176 0.151
Financial year to date 0.083 0.175 0.150
Gold produced (000 ounces)
December 2006 1,085.2 654.3 247.3
September 2006 1,070.1 649.3 257.5
Financial year to date 2,155.3 1,303.6 504.8
Gold sold (000 ounces)
December 2006 1,080.2 649.3 247.3
September 2006 1,071.1 649.3 257.5
Financial year to date 2,151.3 1,298.6 504.8
Gold price received
(dollars per ounce)
December 2006 609 607 608
September 2006 622 623 622
Financial year to date 615 615 615
Total cash costs
(dollars per ounce)
December 2006 353 354 344
September 2006 350 340 338
Financial year to date 351 347 341
Total production costs
(dollars per ounce)
December 2006 441 433 413
September 2006 436 415 405
Financial year to date 438 424 409
Operating costs
(dollars per ton)
December 2006 31 64 53
September 2006 30 63 54
Financial year to date 31 64 54
Financial Results
($ million)
Revenue
December 2006 657.6 394.1 150.3
September 2006 666.5 404.2 160.2
Financial year to date 1,324.1 798.3 310.4
Operating costs
December 2006 403.4 243.5 89.5
September 2006 389.2 231.5 91.5
Financial year to date 792.6 475.0 181.0
Gold inventory change
December 2006 (12.3) (3.0) -
September 2006 (2.6) - -
Financial year to date (14.9) (3.0) -
Operating profit
December 2006 266.5 153.7 60.8
September 2006 279.9 172.7 68.7
Financial year to date 546.4 326.4 129.4
Amortisation of mining
assets
December 2006 96.2 50.4 16.6
September 2006 91.4 48.3 16.9
Financial year to date 187.7 98.8 33.5
Net operating profit
December 2006 170.3 103.3 44.2
September 2006 188.5 124.4 51.8
Financial year to date 358.7 227.6 96.0
Other income/(expenses)
December 2006 (2.4) (5.9) (1.5)
September 2006 (2.4) (3.8) (1.2)
Financial year to date (4.7) (9.6) (2.7)
Profit before taxation
December 2006 167.9 97.3 42.7
September 2006 186.1 120.7 50.5
Financial year to date 354.0 218.0 93.3
Mining and income taxation
December 2006 57.1 30.9 14.6
September 2006 67.2 42.7 17.3
Financial year to date 124.3 73.5 31.3
- Normal taxation
December 2006 27.7 10.1 10.1
September 2006 34.7 15.9 15.9
Financial year to date 62.4 26.0 26.0
- Deferred taxation
December 2006 29.4 20.8 4.0
September 2006 32.5 26.8 1.4
Financial year to date 61.9 47.5 5.4
Profit before exceptional
items
December 2006 110.8 66.5 28.6
September 2006 119.0 78.0 33.2
Financial year to date 229.7 144.4 61.9
Exceptional items
December 2006 1.1 0.4 0.1
September 2006 1.1 1.1 0.6
Financial year to date 2.2 1.5 0.7
Net profit
December 2006 111.9 66.9 28.8
September 2006 120.2 79.2 33.9
Financial year to date 232.0 146.0 62.7
Net profit excluding gains
and losses on
financial instruments and
foreign debt and
exceptional items
December 2006 111.1 66.6 28.7
September 2006 121.9 78.4 33.5
Financial year to date 232.2 145.1 62.2
Capital expenditure
December 2006 139.5 76.8 24.1
September 2006 115.7 60.9 20.2
Financial year to date 255.2 137.8 44.4
Planned for next six months
to June 2007 347.2 194.8 71.1
South African Operations
United States Dollars
Kloof Beatrix South Deep+
Operating Results
Ore milled/treated (000 tons)
December 2006 986 935 184
September 2006 992 984 -
Financial year to date 1,978 1,919 184
Yield (ounces per ton)
December 2006 0.234 0.160 0.146
September 2006 0.245 0.151 -
Financial year to date 0.239 0.156 0.146
Gold produced (000 ounces)
December 2006 230.6 149.5 26.9
September 2006 242.7 149.1 -
Financial year to date 473.3 298.6 26.9
Gold sold (000 ounces)
December 2006 230.6 149.5 21.9
September 2006 242.7 149.1 -
Financial year to date 473.3 298.6 21.9
Gold price received
(dollars per ounce)
December 2006 609 604 598
September 2006 621 626 -
Financial year to date 615 615 598
Total cash costs
(dollars per ounce)
December 2006 354 338 564
September 2006 342 339 -
Financial year to date 348 338 564
Total production costs
(dollars per ounce)
December 2006 445 421 621
September 2006 424 419 -
Financial year to date 434 420 621
Operating costs
(dollars per ton)
December 2006 86 57 83
September 2006 88 54 -
Financial year to date 87 55 83
Financial Results
($ million)
Revenue
December 2006 140.2 90.3 13.4
September 2006 150.8 93.3 -
Financial year to date 291.0 183.6 13.4
Operating costs
December 2006 85.2 53.1 15.6
September 2006 86.7 53.3 -
Financial year to date 171.9 106.4 15.6
Gold inventory change
December 2006 - - (3.0)
September 2006 - - -
Financial year to date - - (3.0)
Operating profit
December 2006 54.9 37.2 0.8
September 2006 64.1 40.0 -
Financial year to date 119.0 77.2 0.8
Amortisation of mining assets
December 2006 20.5 12.0 1.3
September 2006 19.6 11.9 -
Financial year to date 40.2 23.9 1.3
Net operating profit
December 2006 34.4 25.1 (0.5)
September 2006 44.5 28.1 -
Financial year to date 78.9 53.2 (0.5)
Other income/(expenses)
December 2006 (1.3) (1.5) (1.6)
September 2006 (1.0) (1.5) -
Financial year to date (2.3) (3.0) (1.6)
Profit before taxation
December 2006 33.1 23.6 (2.1)
September 2006 43.5 26.6 -
Financial year to date 76.5 50.2 (2.1)
Mining and income taxation
December 2006 8.4 9.2 (0.7)
September 2006 15.1 10.3 -
Financial year to date 23.5 19.5 (0.7)
- Normal taxation
December 2006 - - -
September 2006 - - -
Financial year to date - - -
- Deferred taxation
December 2006 8.4 9.2 (0.7)
September 2006 15.1 10.3 -
Financial year to date 23.4 19.5 (0.7)
Profit before exceptional items
December 2006 24.7 14.4 (1.3)
September 2006 28.4 16.4 -
Financial year to date 53.1 30.7 (1.3)
Exceptional items
December 2006 - 0.3 -
September 2006 - 0.5 -
Financial year to date - 0.8 -
Net profit
December 2006 24.7 14.7 (1.3)
September 2006 28.4 16.9 -
Financial year to date 53.1 31.5 (1.3)
Net profit excluding gains
and losses on
financial instruments and
foreign debt and
exceptional items
December 2006 24.7 14.5 (1.3)
September 2006 28.4 16.6 -
Financial year to date 53.1 31.1 (1.3)
Capital expenditure
December 2006 25.8 21.3 5.6
September 2006 25.9 14.8 -
Financial year to date 51.7 36.1 5.6
Planned for next six months
to June 2007 51.4 34.4 37.9
Average exchange rates were US$1 = R7.38 and US$1 = R7.10 for the December 2006
and September 2006 quarters respectively. The Australian Dollar exchange rates
were A$1 = R5.66 and A$1 = R5.38 for the December 2006 and September 2006
quarters respectively. # As a significant portion of the acquisition price was
allocated to tenements of St Ives and Agnew on endowment ounces and also as
these two Australian operations are entitled to transfer and then off-set tax
losses from one company to another, it is not meaningful to split the income
statement below operating profit. Figures may not add as they are rounded
independently.
+ The acquisition of South Deep is effective from 1 December 2006. Therefore,
these results include activities for the month of December only.
Operating and financial results
International Operations
United States Dollars Ghana Venezuela
Total Tarkwa Damang Choco 10
Operating Results
Ore milled/treated
(000 tons)
December 2006 9,331 5,588 1,326 357
September 2006 9,179 5,514 1,317 306
Financial year to date 18,510 11,102 2,643 663
Yield (ounces per ton)
December 2006 0.046 0.032 0.039 0.064
September 2006 0.046 0.031 0.037 0.053
Financial year to date 0.046 0.032 0.038 0.059
Gold produced
(000 ounces)
December 2006 430.9 178.8 51.6 22.8
September 2006 420.8 173.6 48.5 16.2
Financial year to date 851.7 352.4 100.1 39.0
Gold sold (000 ounces)
December 2006 430.9 178.8 51.6 22.8
September 2006 421.8 173.6 48.5 17.2
Financial year to date 852.7 352.4 100.1 40.0
Gold price received
(dollars per ounce)
December 2006 611 611 612 602
September 2006 622 623 622 600
Financial year to date 617 617 617 602
Total cash costs
(dollars per ounce)
December 2006 351 323 447 426
September 2006 365 344 438 458
Financial year to date 358 333 443 440
Total production costs
(dollars per ounce)
December 2006 452 374 472 508
September 2006 467 399 459 561
Financial year to date 459 386 466 532
Operating costs
(dollars per ton)
December 2006 17 11 17 30
September 2006 17 11 15 32
Financial year to date 17 11 16 31
Financial Results
($ million)
Revenue
December 2006 263.5 109.3 31.6 13.8
September 2006 262.2 108.2 30.2 10.3
Financial year to date 525.7 217.5 61.7 24.1
Operating costs
December 2006 159.9 61.6 22.5 10.6
September 2006 157.7 60.4 20.1 9.8
Financial year to date 317.6 121.9 42.6 20.4
Gold inventory change
December 2006 (9.3) (4.0) 0.4 -
September 2006 (2.6) (0.6) 1.1 (0.6)
Financial year to date (11.9) (4.6) 1.5 (0.6)
Operating profit
December 2006 112.9 51.7 8.7 3.2
September 2006 107.1 48.5 9.0 1.1
Financial year to date 220.0 100.2 17.7 4.3
Amortisation of mining
assets
December 2006 45.8 9.6 1.3 1.9
September 2006 43.1 9.5 1.0 1.8
Financial year to date 88.9 19.2 2.3 3.7
Net operating profit
December 2006 67.1 42.1 7.4 1.3
September 2006 64.0 39.0 8.0 (0.7)
Financial year to date 131.1 81.0 15.4 0.6
Other income/(expenses)
December 2006 3.5 0.3 0.1 0.2
September 2006 1.4 (1.0) - 0.9
Financial year to date 4.9 (0.7) 0.1 1.1
Profit before taxation
December 2006 70.6 42.4 7.4 1.5
September 2006 65.4 37.9 8.0 0.2
Financial year to date 136.0 80.3 15.4 1.7
Mining and income
taxation
December 2006 26.2 13.0 2.8 2.4
September 2006 24.5 12.1 2.7 2.0
Financial year to date 50.8 25.1 5.6 4.4
- Normal taxation
December 2006 17.6 11.5 1.5 1.6
September 2006 18.8 12.8 1.3 2.0
Financial year to date 36.4 24.4 2.7 3.6
- Deferred taxation
December 2006 8.6 1.4 1.3 0.7
September 2006 5.7 (0.7) 1.5 -
Financial year to date 14.4 0.7 2.8 0.7
Profit before
exceptional items
December 2006 44.4 29.4 4.6 (0.9)
September 2006 40.9 25.8 5.3 (1.8)
Financial year to date 85.2 55.2 9.9 (2.7)
Exceptional items
December 2006 0.7 - - -
September 2006 - - - -
Financial year to date 0.7 - - -
Net profit
December 2006 45.1 29.4 4.6 (0.9)
September 2006 40.9 25.8 5.3 (1.8)
Financial year to date 85.9 55.2 9.9 (2.7)
Net profit excluding
gains and losses on
financial instruments
and foreign debt, and
exceptional items
December 2006 44.5 29.5 4.6 (0.9)
September 2006 42.7 26.9 5.7 (1.8)
Financial year to date 87.2 56.4 10.3 (2.7)
Capital expenditure
December 2006 62.6 25.8 7.1 5.0
September 2006 54.8 12.7 6.8 10.9
Financial year to
date 117.4 38.5 13.9 15.9
Planned for next six
months to June 2007 152.3 69.9 16.3 13.1
Australian
Dollars
United States Dollars Australia # Australia #
St Ives Agnew St Ives Agnew
Operating Results
Ore milled/treated
(000 tons)
December 2006 1,742 318 1,742 318
September 2006 1,698 344 1,698 344
Financial year to date 3,440 662 3,440 662
Yield (ounces per ton)
December 2006 0.072 0.167 0.072 0.167
September 2006 0.073 0.172 0.073 0.172
Financial year to date 0.072 0.170 0.072 0.170
Gold produced
(000 ounces)
December 2006 124.6 53.0 124.6 53.0
September 2006 123.4 59.2 123.4 59.2
Financial year to date 248.0 112.2 248.0 112.2
Gold sold (000 ounces)
December 2006 124.6 53.0 124.6 53.0
September 2006 123.4 59.2 123.4 59.2
Financial year to date 248.0 112.2 248.0 112.2
Gold price received
(dollars per ounce)
December 2006 610 620 796 808
September 2006 621 624 820 823
Financial year to date 615 621 807 815
Total cash costs
(dollars per ounce)
December 2006 378 260 493 338
September 2006 429 209 564 276
Financial year to date 403 233 529 306
Total production costs
(dollars per ounce)
December 2006 517 674
September 2006 525 693
Financial year to date 521 683
Operating costs
(dollars per ton)
December 2006 29 47 38 61
September 2006 33 36 43 47
Financial year to date 31 41 40 54
Financial Results
($ million)
Revenue
December 2006 76.0 32.8 99.1 42.8
September 2006 76.6 36.9 101.1 48.7
Financial year to date 152.6 69.7 200.1 91.5
Operating costs
December 2006 50.3 14.8 65.6 19.4
September 2006 55.2 12.3 72.9 16.2
Financial year to date 105.6 27.1 138.4 35.6
Gold inventory change
December 2006 (3.2) (2.4) (3.8) (3.2)
September 2006 (2.8) 0.3 (4.1) 0.4
Financial year to date (6.0) (2.1) (7.9) (2.8)
Operating profit
December 2006 28.9 20.4 37.3 26.6
September 2006 24.2 24.4 32.3 32.1
Financial year to date 53.1 44.7 69.6 58.7
Amortisation of mining
assets
December 2006 33.0 41.8
September 2006 30.8 41.8
Financial year to date 63.7 83.6
Net operating profit
December 2006 16.4 22.1
September 2006 17.7 22.6
Financial year to date 34.1 44.7
Other income/(expenses)
December 2006 2.9 3.8
September 2006 1.5 2.0
Financial year to date 4.5 5.9
Profit before taxation
December 2006 19.3 25.9
September 2006 19.3 24.6
Financial year to date 38.6 50.6
Mining and income
taxation
December 2006 8.0 10.7
September 2006 7.7 9.9
Financial year to date 15.7 20.6
- Normal taxation
December 2006 2.9 3.8
September 2006 2.7 3.6
Financial year to date 5.6 7.4
- Deferred taxation
December 2006 5.1 6.9
September 2006 5.0 6.3
Financial year to date 10.1 13.2
Profit before
exceptional items
December 2006 11.2 15.2
September 2006 11.6 14.7
Financial year to date 22.8 29.9
Exceptional items
December 2006 0.7 0.9
September 2006 - -
Financial year to date 0.7 0.9
Net profit
December 2006 11.9 16.1
September 2006 11.6 14.8
Financial year to date 23.5 30.9
Net profit excluding
gains and losses on
financial instruments
and foreign debt, and
exceptional items
December 2006 11.4 15.3
September 2006 11.8 15.1
Financial year to date 23.2 30.4
Capital expenditure
December 2006 17.1 7.6 22.3 9.9
September 2006 16.4 8.1 21.6 10.6
Financial year to
date 33.5 15.6 43.9 20.5
Planned for next six
months to June 2007 36.9 16.1 47.1 20.6
Underground and surface
South African Rand and Metric Units
South African Operations
Operating Results
Total Mine
Operations Total Driefontein
Ore milled / treated
(000 ton)
- underground
December 2006 3,308 2,866 937
September 2006 3,316 2,800 964
Financial year to date 6,624 5,666 1,901
- surface
December 2006 9,801 912 736
September 2006 9,542 879 739
Financial year to date 19,343 1,791 1,475
- total
December 2006 13,109 3,778 1,673
September 2006 12,858 3,679 1,703
Financial year to date 25,967 7,457 3,376
Yield (grams per ton)
- underground
December 2006 6.8 6.8 7.5
September 2006 6.8 6.9 7.5
Financial year to date 6.8 6.8 7.5
- surface
December 2006 1.2 1.0 0.9
September 2006 1.1 1.0 1.1
Financial year to date 1.1 1.0 1.0
- combined
December 2006 2.6 5.4 4.6
September 2006 2.6 5.5 4.7
Financial year to date 2.6 5.4 4.7
Gold produced
(kilograms)
- underground
December 2006 22,453 19,426 7,016
September 2006 22,449 19,287 7,228
Financial year to date 44,902 38,713 14,244
- surface
December 2006 11,301 926 676
September 2006 10,834 907 781
Financial year to date 22,135 1,833 1,457
- total
December 2006 33,754 20,352 7,692
September 2006 33,283 20,194 8,009
Financial year to date 67,037 40,546 15,701
Operating costs
(Rand per ton)
- underground
December 2006 593 605 654
September 2006 543 567 626
Financial year to date 568 586 640
- surface
December 2006 103 66 65
September 2006 101 64 63
Financial year to date 102 65 64
- total
December 2006 227 475 395
September 2006 215 447 382
Financial year to date 221 461 388
South African Operations
Operating Results
Kloof Beatrix South Total
Deep+
Ore milled / treated
(000 ton)
- underground
December 2006 893 935 101 442
September 2006 852 984 - 516
Financial year to date 1,745 1,919 101 958
- surface
December 2006 93 - 83 8,889
September 2006 140 - - 8,663
Financial year to date 233 - 83 17,552
- total
December 2006 986 935 184 9,331
September 2006 992 984 - 9,179
Financial year to date 1,978 1,919 184 18,510
Yield (grams per ton)
- underground
December 2006 7.8 5.0 7.7 6.8
September 2006 8.7 4.7 - 6.1
Financial year to date 8.3 4.8 7.7 6.5
- surface
December 2006 2.1 - 0.7 1.2
September 2006 0.9 - - 1.2
Financial year to date 1.4 - 0.7 1.2
- combined
December 2006 7.3 5.0 4.6 1.4
September 2006 7.6 4.7 - 1.4
Financial year to date 7.4 4.8 4.6 1.4
Gold produced
(kilograms)
- underground
December 2006 6,978 4,650 782 3,027
September 2006 7,423 4,636 - 3,162
Financial year to date 14,401 9,286 782 6,189
- surface
December 2006 194 - 56 10,375
September 2006 126 - - 9,927
Financial year to date 320 - 56 20,302
- total
December 2006 7,172 4,650 838 13,402
September 2006 7,549 4,636 - 13,089
Financial year to date 14,721 9,286 838 26,491
Operating costs
(Rand per ton)
- underground
December 2006 696 419 1,078 517
September 2006 711 385 - 414
Financial year to date 703 402 1,078 461
- surface
December 2006 86 - 50 107
September 2006 72 - - 105
Financial year to date 78 - 50 106
- total
December 2006 638 419 614 126
September 2006 620 385 - 122
Financial year to date 629 402 614 124
International Operations
Operating Results Ghana Venezuela Australia
Tarkwa Damang Choco 10 St Ives Agnew
Ore milled / treated
(000 ton)
- underground
December 2006 - - - 348 94
September 2006 - - - 396 120
Financial year to date - - - 744 214
- surface
December 2006 5,588 1,326 357 1,394 224
September 2006 5,514 1,317 306 1,302 224
Financial year to date 11,102 2,643 663 2,696 448
- total
December 2006 5,588 1,326 357 1,742 318
September 2006 5,514 1,317 306 1,698 344
Financial year to date 11,102 2,643 663 3,440 662
Yield (grams per ton)
- underground
December 2006 - - - 5.3 12.7
September 2006 - - - 4.4 12.0
Financial year to date - - - 4.8 12.3
- surface
December 2006 1.0 1.2 2.0 1.5 2.0
September 2006 1.0 1.1 1.7 1.6 1.8
Financial year to date 1.0 1.2 1.8 1.5 1.9
- combined
December 2006 1.0 1.2 2.0 2.2 5.2
September 2006 1.0 1.1 1.7 2.3 5.4
Financial year to date 1.0 1.2 1.8 2.2 5.3
Gold produced
(kilograms)
- underground
December 2006 - - - 1,836 1,191
September 2006 - - - 1,725 1,437
Financial year to date - - - 3,561 2,628
- surface
December 2006 5,562 1,605 709 2,040 459
September 2006 5,399 1,508 504 2,112 404
Financial year to date 10,961 3,113 1,213 4,152 863
- total
December 2006 5,562 1,605 709 3,876 1,650
September 2006 5,399 1,508 504 3,837 1,841
Financial year to date 10,961 3,113 1,213 7,713 3,491
Operating costs
(Rand per ton)
- underground
December 2006 - - - 499 584
September 2006 - - - 398 466
Financial year to date - - - 445 518
- surface
December 2006 81 125 220 143 242
September 2006 78 108 228 180 139
Financial year to date 80 117 223 161 191
- total
December 2006 81 125 220 214 343
September 2006 78 108 228 231 253
Financial year to date 80 117 223 222 297
+ The acquisition of South Deep is effective from 1 December 2006. Therefore,
these results include activities for the month of December only.
Restated operating cost per ton on the assumption that the Ore Reserve
Development (ORD) is fully expensed
South African
Operations
Total Mine
Operations Total Driefontein Kloof
- underground
December 2006 672 696 754 803
September 2006 612 650 715 814
Financial year to date 643 673 734 808
- surface
December 2006 103 66 65 86
September 2006 101 64 63 72
Financial year to date 102 65 64 78
- total
December 2006 247 544 451 736
September 2006 233 510 432 709
Financial year to date 240 527 441 722
South African International
Operations Operations
Beatrix South Total
Deep+
- underground
December 2006 479 1,078 517
September 2006 445 - 414
Financial year to date 462 1,078 461
- surface
December 2006 - 50 107
September 2006 - - 105
Financial year to date - 50 106
- total
December 2006 479 614 126
September 2006 445 - 122
Financial year to date 462 614 124
+ The acquisition of South Deep is effective from 1 December 2006. Therefore,
these results include activities for the month of December only.
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 December 2006 quarter September 2006 quarter
Carbon Carbon
Reef Leader Main VCR Leader Main
Advanced (m) 4,955 1,025 1,474 4,376 824
Advanced on reef (m) 851 189 105 993 163
Sampled (m) 768 123 189 942 141
Channel width (cm) 88 65 95 60 44
Average value -
(g/t) 19.6 10.7 10.9 19.7 11.3
- (cm.g/t)1,720 696 1,039 1,185 502
Driefontein September
2006
quarter Year to date F2007
Carbon
VCR Leader Main VCR
Reef
Advanced (m) 1,839 9,331 1,849 3,313
Advanced on reef (m) 246 1,844 352 351
Sampled (m) 252 1,710 264 441
Channel width (cm) 77 73 54 85
Average value - (g/t) 13.4 19.6 11.0 12.2
- (cm.g/t) 1,028 1,425 592 1,033
Kloof December 2006 quarter
Libanon Kloof Main VCR
Reef
Advanced (m) - 289 1,729 6,922
Advanced on reef (m) - 28 288 1,078
Sampled (m) - 24 261 962
Channel width (cm) - 75 156 69
Average value - (g/t) - 5.5 6.5 26.7
- (cm.g/t) - 417 1,014 1,836
Kloof September 2006 quarter
Libanon Kloof Main VCR
Reef
Advanced (m) 12 312 1,587 6,719
Advanced on reef (m) - 54 440 1,320
Sampled (m) - 57 438 979
Channel width (cm) - 85 100 78
Average value - (g/t) - 6.0 9.6 19.5
2
- (cm.g/t) - 506 954 1,522
Kloof Year to date F2007
Libanon Kloof Main VCR
Reef
Advanced (m) 12 601 3,316 13,641
Advanced on reef (m) - 82 728 2,398
Sampled (m) - 81 699 1,941
Channel width (cm) - 82 121 73
Average value - (g/t) - 5.9 8.1 22.9
- (cm.g/t) - 480 976 1,677
Beatrix December 2006 quarter
Reef Beatrix Kalkoenkrans
Advanced (m) 8,778 2,638
Advanced on reef (m) 1,488 163
Sampled (m) 1,017 84
Channel width (cm) 103 123
Average value - (g/t) 11.4 8.6
- (cm.g/t) 1,172 1,065
Beatrix September 2006 quarter
Reef Beatrix Kalkoenkrans
Advanced (m) 8,366 2,629
Advanced on reef (m) 1,516 56
Sampled (m) 1,470 63
Channel width (cm) 77 137
Average value - (g/t) 12.2 19.7
- (cm.g/t) 932 2,698
Beatrix Year to date F2007
Reef Beatrix Kalkoenkrans
Advanced (m) 17,144 5,267
Advanced on reef (m) 3,004 219
Sampled (m) 2,487 147
Channel width (cm) 87 129
Average value - (g/t) 11.8 13.7
- (cm.g/t) 1,030 1,765
South Deep+ December 2006 quarter
Reef VCR Elsburgs
Advanced (m) 43 323
Advanced on reef (m) - 251
Sampled (m) - 251
Channel width (cm) - 569
Average value - (g/t) - 6.6
- (cm.g/t) - 3,746
South Deep+ September 2006 quarter
Reef VCR Elsburgs
Advanced (m) - -
Advanced on reef (m) - -
Sampled (m) - -
Channel width (cm) - -
Average value - (g/t) - -
- (cm.g/t) - -
South Deep+ Year to date F2007
Reef VCR Elsburgs
Advanced (m) 43 323
Advanced on reef (m) - 251
Sampled (m) - 251
Channel width (cm) - 569
Average value - (g/t) - 6.6
- (cm.g/t) - 3,746
1) VCR values at 4 shaft were high, but low grades at 2 and 6 shafts reduced
the overall value.
2) The off-reef development is focused on accessing the higher grade VCR
between 3 and 4 shafts.
+ The acquisition of South Deep is effective from 1 December 2006. Therefore,
these results include activities for the month of December only.
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 0639
e-mail: nerina.bodasing@goldfields.co.za
North America
CHERYL A MARTIN
Telephone: (+1)(303) 796 8683
Facsimile: (+1)(303) 796 8293
e-mail: camartin@gfexpl.com
Transfer Secretaries
South Africa
Computershare Investor Services 2004
(Proprietary) Limited
Ground Floor
70 Marshall Street
Johannesburg, 2001
P O Box 61051
Marshalltown, 2107
Telephone: (+27)(11) 370 5000
Facsimile: (+27)(11) 370 5271
United Kingdom
Capita Registrars
Bourne House
34 Beckenham Road
Beckenham
Kent BR3 4TU
England
Telephone: (+44)(20) 8639 2000
Facsimile: (+44)(20) 8658 3430
WEBSITE
http://www.goldfields.co.za
Directors
A J Wright (Chairman)
K Ansah#
J M McMahon *
P J Ryan
* British
I D Cockerill * (Chief Executive Officer)
A Grigorian
D M J Ncube
T M G Sexwale
# Ghanaian
N J Holland * (Chief Financial Officer)
J G Hopwood
R L Pennant-Rea *
C I von Christierson
Russian
Forward Looking Statements Certain statements in this document constitute
"forward looking statements" within the meaning of Section 27A of the US
Securities Act of 1933 and Section 21E of the US Securities Exchange Act of
1934.
Such forward looking statements involve known and unknown risks, uncertainties
and other important factors that could cause the actual results, performance or
achievements of the company to be materially different from the future results,
performance or achievements expressed or implied by such forward looking
statements. Such risks, uncertainties and other important factors include among
others: economic, business and political conditions in South Africa; decreases
in the market price of gold; hazards associated with underground and surface
gold mining; labour disruptions; changes in government regulations,
particularly environmental regulations; changes in exchange rates; currency
devaluations; inflation and other macro-economic factors; and the impact of
the AIDS crisis in South Africa. These forward looking statements speak only
as of the date of this document.
The company undertakes no obligation to update publicly or release any
revisions to these forward looking statements to reflect events or
circumstances after the date of this document or to reflect the occurrence of
unanticipated events.
Date: 25/01/2007 10:00:06 Produced by the JSE SENS Department.
