Wrap Text
GFI - Gold Fields Limited - Net Earnings Increase By 40% To R1.4 Billion
Gold Fields Limited
Incorporated in the Republic of South Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN - ZAE 000018123
NET EARNINGS INCREASE BY 40% TO R1.4 BILLION
JOHANNESBURG. 4 February 2010, Gold Fields Limited (NYSE & JSE: GFI) today
announced net earnings for the December 2009 quarter of R1,409 million
compared
with earnings of R1,007 million and R483 million in the September 2009 and the
December 2008 quarters respectively. In US dollar terms net earnings for the
December 2009 quarter was US$187 million, compared with US$129 million and
US$54 million for the September 2009 and December 2008 quarters respectively.
Net earnings excluding gains and losses on foreign exchange, financial
instruments, exceptional items and share of profit or loss of associates after
taxation for the December 2009 quarter was R1,022 million compared with
earnings of R625 million and R542 million in the September 2009 and the
December 2008 quarters respectively. In US dollar terms this equates to US$135
million for the December 2009 quarter, compared with US$80 million and US$60
million for the September 2009 and December 2008 quarters respectively.
December 2009 quarter salient features:
Attributable gold production of 900,000 ounces;
Total cash cost similar to previous quarter at R147,648 per kilogram, but up
5 per cent in dollar terms from US$586 per ounce to US$613 per ounce due to
stronger rand;
Notional cash expenditure up 4 per cent from R207,754 per kilogram (US$826
per ounce) to R216,830 per kilogram (US$900 per ounce);
South Deep production up 10 per cent on previous quarter and 50 per cent year
on year;
Cerro Corona production of 98,400 equivalent ounces up 60 per cent year on
year.
Interim dividend number 72 of 50 SA cents per share is payable on 1 March
2010.
Statement by Nick Holland, Chief Executive Officer of Gold Fields:
Gold Fields has again benefited from the higher gold price delivering a 40 per
cent increase in earnings for the quarter ended 31 December 2009. This
significant increase was achieved against a background of mainly safety
related
challenges.
I deeply regret the six fatal accidents at the South African operations during
the quarter and we extend our condolences and sympathy to the families of our
colleagues. Safety is our number one value and we remain committed not to mine
if we cannot mine safely, and to apply, without exception, our safety rules.
In the South Africa region, Beatrix has maintained its consistency, while
South
Deep remains on-track to deliver its 300,000 ounce target for the fiscal year.
Driefontein halted production for seven days, or almost one third of
December`s
production, mostly due to a major seismic event that occurred on 6 December
2009. Kloof was also held back by safety stoppages in line with the "Stop,
Think, Fix, Verify and Continue" philosophy. However, both these mines`
performances in the earlier part of the quarter were robust and the end result
was that their production was similar quarter-on-quarter. That said, both
operations can and should do better, and our focus during 2010 is to
achieve greater consistency at these two flagship operations.
Discussions have commenced with unions, associations and the DMR regarding the
introduction of a six day work week to ameliorate the effects of the Christmas
and Easter breaks, and lost shifts due to safety and other stoppages. The
objective is to improve efficiencies while maintaining current conditions of
employment, especially working hours, in order to create a more sustainable
environment and to avoid possible retrenchments.
In the West Africa region, Tarkwa had a steady quarter and looks set for a
good
2010. Damang was affected by a 13-day accelerated re-build of the SAG mill,
prompting significant repair work which should sustain this operation well
into
the future. We look forward to an improved performance from West Africa over
the next half year, as a result of improved efficiencies and throughput.
In the South America region, optimisation strategies continue to deliver
outstanding results at Cerro Corona. The quarter-on-quarter increase of 11 per
cent in gold equivalent ounces is especially pleasing as the mine benefits
from
a stronger copper price and higher production.
In the Australasia region, Agnew also delivered a solid performance.
Production
at St Ives decreased slightly quarter-on-quarter mainly due to continued
rehabilitation work at the Belleisle underground operation, which is expected
to be completed in the next few weeks.
The focus for the next half year will continue to be on safe production,
development to ensure improved flexibility, as well as on our promising
exploration portfolio.
Stock data
Number of shares in issue
- at end December 2009 705,374,565
- average for the quarter 705,213,542
Free Float 100%
ADR Ratio 1:1
Bloomberg / Reuters GFISJ / GFLJ.J
JSE Limited - (GFI)
Range - Quarter ZAR96.50 - ZAR114.74
Average Volume - Quarter 2,623,351 shares / day
NYSE - (GFI)
Range - Quarter US$12.69 - US$15.82
Average Volume - Quarter 6,500,378 shares / day
SOUTH AFRICAN RAND
Salient features
Six months to Quarter
Dec Dec Dec
2008 2009 2008
Gold produced* 50,910 56,145 26,093
Total cash cost 153,685 147,495 153,893
Notional cash expenditure 235,408 212,277 244,210
Tons milled 26,048 27,576 13,350
Revenue 234,413 252,464 250,058
Operating costs 337 338 340
Operating profit 4,140 6,265 2,566
Operating margin 32 40 36
Net earnings/(loss) 522 2,416 483
80 343 74
Headline earnings 523 1,833 484
80 260 74
Net earnings excluding gains
and losses on foreign 663 1,647 542
exchange, financial
instruments, exceptional
items and share of 101 234 83
profit/(loss) of associates
after taxation
Quarter
Sep Dec
2009 2009
Gold produced* 28,165 27,981 kg
Total cash cost 147,343 147,648 R/kg
Notional cash expenditure 207,754 216,830 R/kg
Tons milled 13,559 14,017 000
Revenue 241,164 263,828 R/kg
Operating costs 343 333 R/ton
Operating profit 2,787 3,478 Rm
Operating margin 38 43 %
1,007 1,409 Rm
Net earnings/(loss)
143 200 SA c.p.s.
452 1,381 Rm
Headline earnings
64 196 SA c.p.s.
Net earnings excluding gains
and losses on foreign 625 1,022 Rm
exchange, financial
instruments, exceptional
items and share of 89 145 SA c.p.s.
profit/(loss) of associates
after taxation
UNITED STATES DOLLARS
Salient features
Quarter
Dec Sep
2009 2009
Gold produced* oz (000) 900 906
Total cash cost $/oz 613 586
Notional cash expenditure $/oz 900 826
Tons milled 000 14,017 13,559
Revenue $/oz 1,096 959
Operating costs $/ton 44 44
Operating profit $m 463 356
Operating margin % 43 38
$m 187 129
Net earnings/(loss)
US c.p.s. 27 18
$m 182 58
Headline earnings
US c.p.s. 26 8
Net earnings excluding gains
and losses on foreign $m 135 80
exchange, financial
instruments, exceptional
items and share of US c.p.s. 20 11
profit/(loss) of associates
after taxation
Quarter Six months to
Dec Dec Dec
2008 2009 2008
Gold produced* 839 1,806 1,637
Total cash cost 487 600 544
Notional cash expenditure 774 863 834
Tons milled 13,350 27,576 26,048
Revenue 792 1,026 830
Operating costs 35 44 38
Operating profit 268 819 472
Operating margin 36 40 32
54 316 59
Net earnings/(loss)
8 45 9
55 240 60
Headline earnings
8 34 9
Net earnings excluding gains
and losses on foreign 60 215 76
exchange, financial
instruments, exceptional
items and share of 10 31 12
profit/(loss) of associates
after taxation
* All salient features given above are managed figures except for gold
produced
which is attributable equivalent production.
All companies are wholly owned except for Ghana (71.1%) and Cerro Corona
(80.7%).
Gold produced (and sales) throughout this report includes copper gold
equivalents of approximately 6%.
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, Ghana,
Australia, Peru and elsewhere; the ability to achieve anticipated efficiencies
and other cost savings in connection with past and future acquisitions,
exploration and development activities; decreases in the market price of gold
and/or copper; hazards associated with underground and surface gold mining;
labour disruptions; availability terms and deployment of capital or credit;
changes in government regulations, particularly environmental regulations; and
new legislation affecting mining and mineral rights; changes in exchange
rates;
currency devaluations; inflation and other macro-economic factors, industrial
action, temporary stoppages of mines for safety reasons; 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.
Health and safety
We regret to report that six fatal accidents occurred at the South African
operations during the December quarter. Accidents occurred at Kloof and South
Deep, with four accidents at Driefontein. Two of the fatal accidents at
Driefontein were related to seismic events, with the remaining fatal accidents
linked to a variety of agencies. West Africa, South America and Australia
remained fatality free.
The Group`s fatal injury frequency rate remained unchanged at
0.14 for the December quarter. The lost time injury frequency rate improved by
2 per cent from 4.21 in the September quarter to 4.11 in the December quarter.
The serious injury frequency rate regressed from 2.02 to 2.33. When comparing
trends to a year ago the fatality injury frequency rate improved from 0.15 to
0.14. The lost time injury frequency rate and the serious injury frequency
rate
improved by 16 per cent from 4.92 to 4.21 and by 13 per cent from 2.69 to 2.33
respectively.
Safe production remains our number one priority and is pursued through the
rollout of the Gold Fields Safe Production Rules. These Safe Production Rules
are further underpinned by visibly felt leadership, development and
counselling. Continued attention is also being paid to management systems and
procedures and such systems are further strengthened through major drives on
fall of ground prevention, seismic risk reduction and good housekeeping
practices.
Financial review
Quarter ended 31 December 2009 compared
with quarter ended 30 September 2009
Revenue
Attributable gold production for the December 2009 quarter amounted to 900,000
ounces compared with 906,000 ounces in the September quarter. At the South
African operations, production decreased marginally from 527,000 ounces to
523,000 ounces. Attributable gold production at the West African operations
decreased by 4 per cent from 161,000 ounces to 155,000 ounces. Attributable
equivalent gold production at the South American operation increased by 11 per
cent from 72,000 ounces in the September quarter to 79,000 ounces in the
December quarter. At the Australian operations gold production decreased by 2
per cent from 146,000 ounces to 143,000 ounces.
At the South African operations, gold production in the December quarter at
South Deep increased by 10 per cent mainly due to higher underground volumes
as
the mine builds its production base. At Beatrix, gold production was similar
despite lower yields. Gold production at Kloof was similar despite lower
volumes resulting from a mine wide safety stoppage following a fatality. This
was mostly offset by improved yields. At Driefontein, gold production was
similar despite a seven day mine wide safety stoppage as a result of a seismic
event which resulted in lower volumes mined and processed from the higher
grade
areas.
At the West African operations, managed gold production at Tarkwa decreased by
1 per cent mainly due to lower volumes mined and lower yields. At Damang, gold
production decreased by 12 per cent due to a 13 day accelerated mill re-build.
In South America, Cerro Corona produced 98,400 equivalent ounces and sold
99,900 equivalent ounces, which is 11 per cent and 12 per cent higher than the
previous quarter respectively.
At the Australian operations, Agnew`s gold production increased by 2 per cent
due to higher volumes processed. At St Ives, gold production decreased by 4
per
cent mainly due to lower underground grades from Belleisle.
The average quarterly US dollar gold price achieved increased 14 per cent from
US$959 per ounce in the September quarter to US$1,096 per ounce in the
December
quarter. The average rand/US dollar exchange rate at R7.49 strengthened 4 per
cent compared with the R7.82 achieved in the September quarter.
However, the rand against the Australian dollar weakened by 5 per cent from
R6.49 to R6.80. As a result of the above factors the rand gold price increased
by 9 per cent from R241,164 per kilogram to R263,828 per kilogram. The
Australian dollar gold price increased by 5 per cent from A$1,155 per ounce to
A$1,208 per ounce.
Revenue increased from R7,416 million (US$948 million) in the September
quarter
to R8,067 million (US$1,076 million) in the December quarter, in line with the
higher gold price.
Operating costs
Net operating costs decreased marginally from R4,629 million (US$592 million)
in the September quarter to R4,589 million (US$613 million) in the December
quarter. Total cash cost was similar in rand terms at R147,648 per kilogram
but
increased by 5 per cent in dollar terms from US$586 per ounce in the September
quarter to US$613 per ounce in the December quarter due to the effect of
converting the South African operations into dollars at the stronger rand
exchange rate.
At the South African operations, operating costs increased by 1 per cent from
R2,768 million (US$354 million) to R2,798 million (US$374 million). This
increase was mainly due to increased costs at South Deep in line with the
project build-up and increased planned maintenance costs at Kloof, partly
offset by lower electricity costs at all the operations due to the lower
summer
electricity tariffs. Total cash cost at the South African operations increased
by 2 per cent from R162,553 per kilogram (US$647 per ounce) to R165,707 per
kilogram (US$688 per ounce).
At the West African operations, operating costs including gold-in-process
movements decreased by 5 per cent from US$115 million (R903 million) in the
September quarter to US$110 million (R824 million) in the December quarter.
This was mainly due to the lower production. Total cash cost at the West
African operations increased from US$513 per ounce in the September quarter to
US$525 per ounce in the December quarter.
At Cerro Corona in South America, operating costs including gold-in-process
movements increased from US$31 million (R242 million) to US$37 million (R277
million). This increase was mainly due to an increase in Workers Legal
Participation of profit as a result of higher profitability and increased
freight charges. Total cash cost at Cerro Corona increased from US$349 per
ounce in the September quarter to US$377 per ounce in the December quarter.
At the Australian operations, operating costs including gold-in-process
movements decreased from A$110 million (R716 million) to A$101 million (R690
million). This decrease was mainly due to the lower production and the
termination of the Morgan Stanley royalty at St Ives in the September quarter.
Total cash cost increased by 2 per cent from US$626 per ounce (A$754 per
ounce)
to US$638 per ounce (A$703 per ounce).
Notional cash expenditure (NCE)
Notional cash expenditure is defined as operating costs (including general and
administration) plus capital expenditure, which includes brownfields
exploration, and is reported on a per kilogram and per ounce basis - refer to
the detailed table on page 24 of this report.
The objective is to provide the all-in costs for the Group, and for each
operation. The NCE per ounce is an important measure, as it determines how
much
free cash flow is generated in order to pay taxation, interest, greenfields
exploration and dividends.
The NCE for the Group for the December quarter amounted to R216,830 per
kilogram (US$900 per ounce) compared with R207,754 per kilogram (US$826 per
ounce) in the September quarter.
At the South African operations, the NCE increased from R233,034 per kilogram
(US$927 per ounce) in the September quarter to R242,050 per kilogram (US$1,005
per ounce) in the December quarter. At the West African operations, the NCE
increased from US$678 per ounce to US$741 per ounce. At the South American
operation, Cerro Corona, NCE increased by 3 per cent from US$599 per ounce in
the September quarter to US$617 per ounce in the December quarter. NCE at the
Australian operations increased from US$831 per ounce (A$1,002 per ounce) to
US$956 per ounce (A$1,053 per ounce).
Operating margin
The net effect of the changes in revenue and costs, after taking into account
gold-in-process movements, was a 25 per cent increase in operating profit from
R2,787 million (US$356 million) in the September quarter to R3,478 million
(US$463 million) in the December quarter. The Group operating margin was 43
per
cent compared with 38 per cent in the September quarter. The margin at the
South African operations increased from 30 per cent to 35 per cent. At the
West
African operations the margin increased from 47 per cent to 54 per cent. At
Cerro Corona in South America the margin increased from 64 per cent to 66 per
cent, while at the Australian operations the margin increased from 35 per cent
to 41 per cent.
Amortisation
Amortisation decreased from R1,174 million (US$150 million) in the September
quarter to R1,156 million (US$154 million) in the December quarter. At the
South African operations amortisation increased from R606 million (US$78
million) to R613 million (US$82 million). This was mainly due to the increase
in production at South Deep, partly offset by lower production at Kloof. At
the
West African operations, amortisation increased from US$28 million (R216
million) to US$31 million (R229 million) due to the amortisation of additional
mining equipment at Tarkwa. At South America, amortisation decreased from
US$14
million (R109 million) to US$13 million (R98 million) due to a
reclassification
of assets.
At the Australian operations, amortisation decreased from US$27 million (R207
million) to US$24 million (R181 million) mainly due to less ounces mined from
the more expensive Belleisle and Cave Rocks underground mines.
Other
Net interest paid of R23 million (US$3 million) in the December quarter
compares with net interest paid of R49 million (US$6 million) in the September
quarter. In the December quarter interest paid of R121 million (US$16 million)
was partly offset by interest received of R78 million (US$10 million) and
interest capitalised of R20 million (US$3 million). This compares with
interest
paid of R137 million (US$18 million) partly offset by interest received of R68
million (US$12 million) and interest capitalised of R20 million (US$3 million)
in the September quarter.
The share of profit of associates after taxation of R44 million (US$6 million)
in the December quarter compares with a loss of R16 million (US$2 million) in
the September quarter. The profit of R44 million relates to equity accounted
profits realised by Rand Refinery Limited (Rand Refinery) of R45 million (US$6
million), partially offset by equity accounted losses incurred at Rusoro of R1
million. The loss in the September quarter relates to equity accounted losses
incurred at Rand Refinery of R3 million (US$nil million) and at Rusoro of R13
million (US$2 million).
The gain on foreign exchange of R8 million (US$1 million) in the December
quarter compares with a loss of R63 million (US$8 million) in the September
quarter. The gain in the December quarter mainly related to exchange gains on
the conversion of offshore cash holdings into their functional currency. The
loss in the September quarter was mainly due to foreign exchange losses on the
repayment of Australian dollar intercompany loans.
The loss on financial instruments of R55 million (US$8 million) in the
December
quarter compares with a loss of R132 million (US$17 million) in the September
quarter. The loss in the December quarter includes R50 million (US$7 million)
realised losses and R7 million (US$1 million) unrealised losses on the Cerro
Corona copper financial instruments, partially offset by a R2 million (US$nil
million) gain on US$/ZAR forward cover contracts taken out during the quarter.
Refer to page 17 of this report for more detail.
The loss in the September quarter comprised R20 million (US$3 million)
realised losses and R112 million (US$14 million) unrealised losses on the
Cerro Corona copper financial instruments.
Share based payments were similar to the previous quarter at R121 million
(US$16 million).
Other costs increased from R5 million (US$1 million) in the September quarter
to R25 million (US$3 million) in the December quarter. This was mainly due to
lower income from our insurance captives.
Exploration
Exploration expenditure increased from R133 million (US$17 million) in the
September quarter to R168 million (US$22 million) in the December quarter due
to increased drilling activity. Refer to the Exploration and Corporate
Development section on page 10 of this report for more detail.
Exceptional items
The exceptional gain in the December quarter of R432 million (US$58 million)
was mainly as a result of Gold Fields receiving an additional 4,057,762
Eldorado shares valued at R402 million (US$53 million), which were received as
a result of Gold Fields exercising its top-up right in Eldorado Gold
Corporation due to the completion of an agreement between Eldorado and Sino
Gold, whereby Eldorado acquired all of the outstanding issued shares of Sino
Gold. The balance of R30 million (US$4 million) was profit on the sale of our
stake in an exploration junior. The exceptional gain in the September quarter
of R667 million (US$85 million) was mainly as a result of a R447 million
(US$57
million) profit on the sale of our stake in Sino Gold, a R282 million (US$37
million) profit on the sale of Eldorado shares, partially offset by a R57
million (US$7 million) impairment of sundry offshore exploration investments.
Taxation
Taxation for the quarter amounted to R831 million (US$111 million) compared
with R638 million (US$82 million) in the September quarter, in line with the
increase in taxable profit. The tax expense includes normal and deferred
taxation at all operations, together with government royalties at the
international operations.
Earnings
Net profit attributable to ordinary shareholders amounted to R1,409 million
(US$187 million) or 200 SA cents per share (US$0.27 per share), compared with
R1,007 million (US$129 million) or 143 SA cents per share (US$0.18 per share)
in the September quarter.
Headline earnings i.e. earnings less the after tax effect of asset sales,
impairments and the sale of investments amounted to R1,381 million (US$182
million) or 196 SA cents per share (US$0.26 per share), compared with earnings
of R452 million (US$58 million) or 64 SA cents per share (US$0.08 per share)
in
the September quarter.
Earnings excluding exceptional items as well as gains and losses on foreign
exchange, financial instruments and profit or losses of associates after
taxation amounted to R1,022 million (US$135 million) or 145 SA cents per share
(US$0.20 per share), compared with earnings of R625 million (US$80 million) or
89 SA cents per share (US$0.11 per share) reported in the September quarter.
Cash flow
Cash inflow from operating activities for the quarter amounted to R2,105
million (US$279 million), compared with R1,263 million (US$165 million) in the
September quarter. This quarter on quarter increase of R842 million (US$114
million) was mainly due to the increase in profit before tax and exceptional
items of R886 million (US$122 million), a decrease in taxation paid of R581
million (US$68 million), partially offset by decrease in exceptional items of
R235 million (US$27 million) and an increase in working capital of R443
million
(US$61 million).
Capital expenditure increased from R1,746 million (US$223 million) in the
September quarter to R1,967 million (US$262 million) in the December quarter.
At the South African operations, capital expenditure increased from R1,050
million (US$134 million) in the September quarter to R1,137 million (US$152
million) in the December quarter. This increase was mainly at South Deep, in
line with the build-up in production and due to increased expenditure at
Kloof. Expenditure on Ore Reserve Development (ORD) in the December quarter at
Driefontein, Kloof and Beatrix accounted for R147 million (US$19 million),
R175
million (US$22 million) and R99 million (US$12 million), compared with R146
million (US$19 million), R174 million (US$22 million), and R95 million (US$12
million) in the September quarter respectively. The focus on development is in
line with the stated need to increase flexibility at the South African
operations.
At the West African operations, capital expenditure increased from US$36
million to US$43 million due to increased spend on waste removal at Teberebie
and new mining equipment. In South America, at Cerro Corona, capital
expenditure increased from US$22 million to US$24 million mainly due to
construction work on the Tailings Management Facility. At the Australian
operations, capital expenditure increased from A$36 million to A$46 million
for
the quarter. At St Ives, capital expenditure increased from A$23 million to
A$31 million due to excavation of a box-cut at Athena and related
infrastructure development. Capital expenditure increased from A$13 million to
A$15 million at Agnew due to increased underground capital development at Kim
and Main Lode.
Purchase of investments of R89 million (US$12 million) mainly reflects the
purchase of the remaining interest in Glencar. Glencar is now wholly owned by
Gold Fields.
Proceeds on the disposal of investments of R53 million (US$7 million) reflects
the sale of a holding in a junior exploration company.
Net cash outflow from financing activities in the December quarter amounted to
R631 million (US$83 million). Loans received in the December quarter amounted
to R3.8 billion (US$509 million). This included loans received of R2.2 billion
(US$294 million)via the issue of commercial paper and an offshore facility of
R1.6 billion(US$221 million) which was swapped for a less expensive facility.
Loans repaid amounted to R4.5 billion (US$596 million), mainly made up of R1.7
billion (US$234 million) repayment of an offshore facility, R1.4 billion on
the
refinancing of the South African commercial paper, replacement of working
capital loans of R1 billion (US$127 million) and R308 million (US$40 million)
repayment of a project finance facility.
Net cash outflow for the quarter at R534 million (US$72 million) compares with
a net cash outflow of R439 million (US$58 million) in the September quarter.
After accounting for a positive translation adjustment of R85 million (US$2
million), the cash balance at the end of December was R1,828 million (US$239
million). The cash balance at the end of September was R2,278 million (US$309
million), a net decrease of R450 million (US$70 million) for the quarter.
Balance sheet (Investments and net debt)
Investments increased from R1,164 million (US$158 million) at 30 September
2009
to R1,647 million (US$215 million) at 31 December 2009. This increase was
mainly due to the Eldorado shares received as part of the top-up agreement.
Net debt (long-term loans plus current portion of long-term loans less cash
and
deposits) decreased marginally from R6,694 million (US$908 million) in the
September quarter to R6,669 million (US$871 million) in the December quarter.
Detailed and operational review
South African operations
Gold Fields has recently made representation to the National Energy Regulator
of South Africa (NERSA) regarding the proposed electricity increases over the
next three years and the increased threat this represents to the
sustainability
of the industry. Electricity costs which amounted to some R800 million two
years ago has more than doubled to R1.7 billion and is expected to increase by
a further 146 per cent to R4 billion in the next three years should the mooted
three year annual increase of 35 per cent be implemented. As can be seen in
Project 3M below, strategies have been implemented and consumption has been
successfully reduced, improving costs and efficiencies.
Cost and revenue optimisation initiatives
During financial 2008, the South African operations reviewed the suite of
projects under Project 500 and identified the following for implementation
over
two to three years.
Project 1M
Project 1M is a productivity initiative that aims to improve quality mining
volumes by increasing the face advance by between 5 and 10 per cent per annum,
based on financial year 2009 actuals. This should translate to similar
improvements in tons broken over the same period.
This should be achieved through the following key improvement initiatives:
drilling and blasting practices to improve advance per blast;
support, cleaning and sweeping practices to improve blasting frequency;
mining cycle, labour availability and training; and
improved pay face availability.
The planned increase in face advance targets should translate in improved
underground production, which will reflect in improved labour efficiencies,
lower unit mining costs and improved revenue. Although an improvement in face
advance of 1 per cent quarter on quarter was achieved, this improvement has
not
translated into improved underground production due to current limited pay
face
flexibility.
Project 2M
Project 2M is a technology initiative aimed at mechanising all flat-end
development (i.e. development on the horisontal plane) at the long-life shafts
of Driefontein, Kloof and Beatrix by the end of financial year 2010. South
Deep
is excluded as it is already a fully mechanised mine. The aim of the project
is
to improve safety and development productivity, reduce development costs and
increase ore reserve flexibility. The project achieved a 5 per cent
improvement
in the mechanisation rate for the quarter, up to 52 per cent of flat-end
development, targeting 100 per cent mechanisation rate by 30 June 2010.
Unit cost, equipment efficiency and labour productivity are improving as teams
are gaining more experience with the mechanised equipment. Safety improvements
to date are very encouraging, without any serious injuries recorded on the
development drill rigs for the financial year.
Project 3M
Project 3M is a suite of projects focused on reducing energy and utilities
consumption, work place absenteeism and surface ("above-ground") costs,
including supply chain.
Electricity consumption targets for financial 2010 were set to maximise
production within the Eskom limits of 90 per cent.
During the December quarter, the challenge has been met on consumption, but
the
actual tariff of electricity has increased by 36 per cent compared with
financial 2009. Various projects are in progress to reduce consumption
further,
including the introduction of three chamber pump systems which will use the
gravitational force of chilled service water from surface to pump out warm
underground water, thereby improving efficiency and reducing electricity costs
at Driefontein and Kloof. Also at these operations, real time monitoring of
power consumption has been introduced at all major points of delivery and pump
efficiencies continue to improve.
A project is currently underway to reduce consumption by another 10 percent in
two to three years. This is a medium term project and will require fundamental
technology changes. Nonetheless, further savings from the existing
configuration are possible. The project to reduce diesel consumption delivered
mixed results. This quarters` consumption unfortunately regressed due to the
production build-up at South Deep.
The work place absenteeism project ("Unavailables project") aims to ameliorate
the impact of work place absenteeism on production and costs by targeting a
reduction from 14 per cent to 10 per cent by the end of financial 2010. A
target of 2 per cent in each of financial 2009 and 2010 was set. The target of
2 per cent reduction was achieved in financial 2009 mainly due to reduced
incidences of industrial action and more diligent labour management. Progress
was made during the December quarter, but the rollover of a very heavy
influenza season and memorial days due to fatal accidents negated progress.
The above-ground cost project aims to reduce surface costs by at least
R150 million per annum by the end of financial 2010.
Projects in place to reduce above ground cost were the following:
Shared Services: savings for the quarter were R14 million (year to date R26
million). These savings were realised by optimisation of process, labour,
discounts received and inventory.
Training expenditure: a focused strategy to service our core business is
being developed. Benefits of this re-aligned strategy for the quarter amounted
to R8 million (year to date R15 million).
South African operations (various small projects): savings for the quarter
amounted to R28 million (year to date R34 million).
Supply chain projects: contracted savings for the quarter amounted to R11
million (year to date R43 million). These benefits were delivered through
competitive tendering on conveyor belts, valves, tyres and various repair
contracts and also certain contractual rise and fall arrangements.
Some price inflation was experienced in cost areas such as permanent support
and some steel bearing products such as lifting equipment, rails and fittings
and steel balls.
Project 4M
Project 4M focuses on the Mine Health and Safety Council (MHSC) milestones
agreed to on 15 June 2003 by a tripartite health and safety summit comprising
representatives from Government, organised Labour Unions and Associations, and
mining companies. The focus is on achieving occupational health and safety
targets and milestones over a 10-year period.
The commitment was driven by the need to achieve greater improvements in
occupational health and safety in the mining industry.
In order to meet the noise induced hearing loss target the company is focusing
on the noise at source. A target was set by the MHSC that no machine or piece
of equipment may generate a noise level in excess of 110 dB (A) after December
2013. A number of action plans have been put in place to meet this target
based
on the highest potential exposure source.
Action plans to reduce the noise at source cover all auxiliary fans, pneumatic
loaders and diamond drills. Progress to date is encouraging and for the three
interventions, is 90 per cent, 67 per cent and 91 per cent complete
respectively.
Silicosis is one of the biggest health risks in the Gold Mining Industry. In
order to meet the silicosis targets set by the MHSC the company has put
several
interventions in place.
During the December quarter individual gravimetric dust sample measurements
taken were within the limits of not more than 5 per cent of the occupational
exposure limits of 0.1 milligrams per cubic metre. Progress against
interventions is monitored quarterly.
Project 5M
Uranium project
Gold Fields is undertaking a feasibility study focused on exploring the
economic potential of processing its South African tailings storage facilities
(TSFs) to recover uranium, gold and sulphur and its underground reserves of
uranium and sulphur which continue to be by-products of gold mining. A
bankable
feasibility study began in July 2009 to optimise the best option identified
during the pre-feasibility study, also referred to as the project base case
study. The feasibility study test work and engineering for the base case study
has been completed. The capital cost model for the base case study is being
refined and is currently going through final review. The operating cost model
for the project has also been fully developed and is under review. Current
project activities include the development of a project execution plan
inclusive of the project implementation schedule, the development of possible
project phasing options and optimisation of cash flow requirements.
Parallel to completing the base case study, the task team has identified a
number of value engineering opportunities which require further investigation.
These opportunities are largely related to metallurgical pilot plant test work
results achieved during the feasibility study test programme and relate to the
phasing of certain sections of the project and resources to be treated. The
technical scope of work, for the value engineering work, has been fully
developed and will be evaluated during the March quarter for possible
inclusion into the base case study.
The legislative approval process has advanced significantly with the
completion
of the entire technical site investigation process. Appropriate engineering
solutions have been developed to mitigate all potential impacts which may
arise
from the new centralised tailings storage facility (CTSF) and associated
infrastructure. The primary impacts of the CTSF relate to potential ground
water contamination and dust pollution. Predictive modelling techniques were
used to determine the long term impacts on the environment and the
effectiveness of the mitigation strategies developed for the different
impacts.
The outcomes of the environmental impact assessment were subjected to a second
round of independent peer reviews. The environmental impact report is in final
draft format. The legal review of the process is expected to be completed
shortly. The second phase of the public participation process is scheduled to
take place during February 2010, with final submission of the environmental
impact report to the authorities by the end of February 2010.
The marketing studies related to sulphuric acid and uranium were completed
during the past quarter. Cost models have been developed for marketing,
refining and logistics associated with the disposal of these two commodities.
The marketing strategy for uranium and surplus acid is pending, and
discussions
with potential buyers and consumers of these commodities are ongoing.
The feasibility study for the base case should be completed within the
approved
budget for the project. Current commitments amount to R95 million and the
expected cost to complete the base case feasibility study amounts to R106
million. The value engineering process will require an additional R12 million.
The bankable feasibility study, inclusive of the value engineering work, is
expected to be R118 million. The feasibility study is on schedule for
completion by the end of the March quarter, with the regulatory processes
expected to be completed by the end of September 2010.
Integrated continuous improvement
initiatives and strategic sourcing/
contract benefits
The following areas of price inflation and cost reductions were achieved:
Australasia
Around A$5 million future multi-year estimated contract tender/negotiation
benefits were delivered during the December quarter (based on current baseline
and not discounted for inflation). These benefits were achieved through
competitive tendering and negotiations in areas such as fuel supply, assay
pricing, flight services and haulage. A development contract was established
during the quarter to ensure delivery of a quicker turnaround time from
development metres to ore delivery from new mines. Marginal inflation
increases
were experienced for the quarter in areas such as explosives, grinding balls,
fuel and gas.
West Africa
Overall the Gold Fields commodity spend basket inflation is lower than Ghana
general CPI.
South America
Continued commodity deflation was experienced due to price reductions in areas
such as ammonia nitrate/explosives and grinding balls. However, inflation
increases were experienced in areas such as flocculants, general chemicals and
lubricants.
South Africa region
Driefontein
Dec Sep
2009 2009
Gold produced - kg 5,825 5,893
- 000`oz 187.3 189.5
Yield - underground - g/t 7.2 7.3
- combined - g/t 3.8 3.8
Total cash cost - R/kg 154,678 154,387
- US$/oz 642 614
Notional cash expenditure - R/kg 208,103 207,416
- US$/oz 864 825
Gold production decreased from 5,893 kilograms (189,500 ounces) in the
September quarter to 5,825 kilograms (187,300 ounces) in the December quarter
mainly due to a decrease in underground yield, partially offset by an increase
in underground volumes. Underground tons increased from 708,000 tons in the
September quarter to 720,000 tons in the December quarter, but were
significantly impacted by a seven day production stoppage, or almost one third
of the December month`s production, due to a major seismic event. Surface tons
decreased marginally from 832,000 tons to 829,000 tons. Underground yield
decreased from 7.3 grams per ton to 7.2 grams per ton due to lower volumes
from
the higher grade shafts. Surface yield declined from 0.9 grams per ton in the
September quarter to 0.8 grams per ton in the December quarter mainly due to
changes in the mix.
Main development decreased by 4 per cent for the quarter and on-reef
development decreased by 3 per cent. The average development value decreased
from 1,625 centimetre grams per ton in the September quarter to 1,209
centimetre grams per ton in the December quarter, primarily due to lower
values
at 1 shaft and 4 shaft.
Operating costs decreased from R950 million (US$122 million) to R938 million
(US$125 million). The decrease in operating costs is mainly due to lower
electricity costs as a result of lower summer tariffs, partly offset by
increased stores and labour costs. Total cash cost increased marginally from
R154,387 per kilogram (US$614 per ounce) to R154,678 per kilogram (US$642 per
ounce).
Operating profit increased from R467 million (US$60 million) in the September
quarter to R592 million (US$79 million) in the December quarter mainly due to
the higher rand gold price received.
Capital expenditure at R274 million (US$37 million) was similar to the
previous
quarter`s spending of R272 million (US$35 million).
Notional cash expenditure increased marginally from R207,416 per kilogram
(US$825 per ounce) to R208,103 per kilogram (US$864 per ounce).
March 2010 quarter`s gold production is estimated to be lower due to a slow
start up after the Christmas break. Total cash cost is expected to increase
due
to the senior officials annual salary increases and increases in support
costs.
Capital expenditure is expected to be lower than the previous quarter.
The estimate for the March 2010 quarter is as follows:
Gold produced - 5,000 kilograms (161,000 ounces)
Total cash cost* - R178,000 per kilogram (US$745 per ounce)
Capital expenditure* - R250 million (US$34 million)
Notional cash expenditure* - R236,000 per kilogram (US$985 per ounce)
* Based on an exchange rate of US$1 = R7.45
Kloof
Dec Sep
2009 2009
Gold produced - kg 4,887 5,024
- 000`oz 157.1 161.5
Yield - underground - g/t 7.5 6.7
- combined - g/t 4.6 4.8
Total cash cost - R/kg 169,306 162,818
- US$/oz 703 648
Notional cash expenditure - R/kg 233,804 217,456
- US$/oz 971 865
Gold production decreased from 5,024 kilograms (161,500 ounces) in the
September quarter to 4,887 kilograms (157,100 ounces) in the December quarter
mainly due to a mine wide safety related stoppage following a fatality and
some
infrastructural stop and fix activities. Underground tonnage decreased from
713,000 tons to 612,000 tons but was partially offset by an increase in yield
from 6.7 grams per ton to 7.5 grams per ton. The increase in yield was due to
a
21 per cent increase in the underground broken grade which was partially
offset
by a lower Mine Call Factor at 3 shaft and 4 shaft.
Total main development was 2 per cent lower for the quarter, although on-reef
development improved by 24 per cent. The average main development value was
similar quarter on quarter at 2,471 centimetre grams per ton.
Operating costs increased from R848 million (US$109 million) in the September
quarter to R863 million (US$115 million) in the December quarter. The increase
in operating costs was mainly due to planned maintenance cost, partly offset
by
a decrease in electricity cost. Total cash cost increased by 4 per cent, from
R162,818 per kilogram to R169,306 per kilogram due to a combination of
increased cost and lower production.
Operating profit increased from R361 million (US$46 million) in the September
quarter to R423 million (US$56 million) in the December quarter due to the
higher gold price received.
Capital expenditure increased from R244 million (US$31 million) to R280
million
(US$37 million) mainly due to increased expenditure on housing projects and
hydropower equipment.
Notional cash expenditure increased by 8 per cent from R217,456 per kilogram
to
R233,804 per kilogram mainly due to the lower gold produced and a higher
capital expenditure. Gold production for the March 2010 quarter is estimated
to
decrease due to a slow start-up after the Christmas break.
Total cash cost per ounce is estimated to increase mainly as a result of the
lower production. Capital expenditure is planned to decrease.
The estimate for the March 2010 quarter is as follows:
Gold produced - 4,500 kilogram (145,000 ounces)
Total cash cost* - R180,000 per kilogram (US$750 per ounce)
Capital expenditure* - R250 million (US$34 million)
Notional cash expenditure* - R242,000 per kilogram (US$1,010 per ounce)
* Based on an exchange rate of US$1 = R7.45
Beatrix
Dec Sep
2009 2009
Gold produced - kg 3,318 3,437
- 000`oz 106.7 110.5
Yield - g/t 4.1 4.3
Total cash cost - R/kg 167,722 165,900
- US$/oz 696 660
Notional cash expenditure - R/kg 220,766 215,595
- US$/oz 917 858
Gold production decreased by 3 per cent from 3,437 kilograms (110,500 ounces)
in the September quarter to 3,318 kilograms (106,700 ounces) in the December
quarter. Tons milled increased from 791,000 tons to 816,000 tons but this was
offset by a decrease in yield from 4.3 grams per ton in the September quarter
to 4.1 grams per ton for the December quarter. The decrease in yield was due
to
a lower Mine Call Factor which decreased from 81 per cent in the September
quarter to 76 per cent in the December quarter.
Development volumes showed an increase of 12 per cent quarter on quarter. The
increase was mainly at 3 shaft. Total main development increased from 7,014
metres to 7,879 metres at an average value of 1,919 centimetre grams per ton
for the quarter compared with 1,226 centimetre grams per ton for the September
quarter, with the increase in grade mainly at the West and North sections.
Operating costs decreased by 3 per cent from R591 million (US$76 million) in
the September quarter to R576 million (US$77 million) in the December quarter.
The decrease in costs was mainly due to lower summer electricity tariffs.
Total
cash cost increased by 1 per cent from R165,900 per kilogram in the September
quarter to R167,722 per kilogram in the December quarter.
Operating profit increased from R235 million (US$30 million) in the September
quarter to R302 million (US$40 million) in the December quarter mainly due to
the higher rand gold price received.
Capital expenditure increased by 5 per cent from R150 million (US$19 million)
in the September quarter to R156 million (US$21 million) in the December
quarter mainly due to engineering infrastructure maintenance and increased ore
reserve development.
Notional cash expenditure increased from R215,595 per kilogram (US$858 per
ounce) to R220,766 per kilogram (US$917 per ounce) mainly due to the lower
gold
production.
Gold production is estimated to be lower in the March quarter due to a slow
start-up after the Christmas break. Total cash cost is expected to increase
mainly due to the lower gold production. Capital expenditure is expected to
decrease.
The estimate for the March 2010 quarter is as follows:
Gold produced - 3,000 kilogram (96,000 ounces)
Total cash cost* - R182,000 per kilogram (US$760 per ounce)
Capital expenditure* - R140 million (US$19 million)
Notional cash expenditure* - R235,000 per kilogram (US$980 per ounce)
* Based on an exchange rate of US$1 = R7.45.
South Deep project
Dec Sep
2009 2009
Gold produced - kg 2,227 2,032
- 000`oz 71.6 65.3
Yield - underground - g/t 6.2 6.5
- combined - g/t 5.6 5.1
Total cash cost - R/kg 183,655 179,921
- US$/oz 763 716
Notional cash expenditure - R/kg 380,647 375,344
- US$/oz 1,581 1,493
Gold production at South Deep increased by 10 per cent from 2,032 kilograms
(65,300 ounces) in the September quarter to 2,227 kilograms (71,600 ounces) in
the December quarter. This increase was due to improved mining volumes as the
mine builds its production base. Underground ore processed increased by 10 per
cent from 347,000 tons in the September quarter to 383,000 tons in the
December
quarter albeit at a slightly lower yield. The combined yield increased from
5.1
grams per ton to 5.6 grams per ton due to a decrease in low grade surface
tonnage from 52,000 tons to 12,000 tons quarter on quarter.
Development decreased by 4 per cent during the December quarter from 2,715
metres to 2,606 metres. The new mine capital development in phase 1, sub 95
level, decreased by 25 per cent for the December quarter from 1,361 metres to
1,016 metres. This decrease was due to the mining of larger dimension
infrastructure on 110 and 110a levels which required more ground support.
Mechanised equipment breakdowns also contributed to this decrease. Focus
has been placed on planned maintenance processes to address this.
Development in the current mine areas above 95 level increased by 7 per cent
for the December quarter from 1,298 metres to 1,394 metres. Raise boring
increased from 57 metres in the September quarter to 196 metres in the
December
quarter.
Operating costs increased by 11 per cent from R379 million (US$48 million) in
the September quarter to R421 million (US$56 million) in the December quarter
in line with the build-up in employees for FULCO and the introduction of a
more competitive remuneration package for trackless operators. The total cash
cost increased by 2 per cent from R179,921 per kilogram in the September
quarter to R183,655 per kilogram in the December quarter.
Operating profit increased by 54 per cent from R109 million (US$14 million) in
the September quarter to R168 million (US$22 million) in the December quarter.
This was due to the increased gold production and the 9 per cent increase in
the gold price received for the December quarter.
Capital expenditure increased by 11 per cent from R384 million (US$49 million)
in the September quarter to R427 million (US$57 million) in the December
quarter, in line with the project build-up. The increased expenditure was
mainly on mechanised equipment, the new tailings dam and secondary support.
Notional cash expenditure increased from R375,344 per
kilogram (US$1,493 per ounce) to R380,647 per kilogram
(US$1,581 per ounce) due to the increase in operating cost and
capital expenditure.
South Deep will continue to focus on delivering the build-up to
the planned development metres, the completion of the Twin
Shaft infrastructure, the new tailings dam and delivery of
increased gold production.
The estimate for the March 2010 quarter is as follows:
Gold produced - 2,200 kilograms (71,000 ounces)
Total cash costs* - R192,000 per kilogram (US$800 per ounce)
Capital expenditure* - R428 million (US$57 million)
Notional cash expenditure* - R394,000 per kilogram (US$1,640 per ounce)
* Based on an exchange rate of US$1 = R7.45
West Africa region
Ghana
Tarkwa
Dec Sep
2009 2009
Gold produced - 000`oz 172.8 175.1
Yield - heap leach - g/t 0.5 0.6
- CIL plant - g/t 1.4 1.4
- combined - g/t 1.0 1.1
Total cash cost - US$/oz 492 480
Notional cash expenditure - US$/oz 728 690
Gold production decreased from 175,100 ounces in the September quarter to
172,800 ounces in the December quarter.
This was mainly due to a marginally lower combined yield and lower volumes
processed at the CIL plant.
Total tons mined, including capital stripping, increased from
31.6 million tons in the September quarter to 31.9 million tons in the
December
quarter. Ore mined was down to 5.1 million tons compared with the previous
quarter`s 5.3 million tons. Head grade for the December quarter was 1.18 grams
per ton, marginally lower than September quarter`s head grade of
1.20 grams per ton. The strip ratio increased from 5.01 in the September
quarter to 5.26 in the December quarter, which is in line with the longer term
plan to improve mining flexibility.
The total feed to the CIL plant was 2.70 million tons compared with 2.87
million tons in the September quarter. CIL yield was maintained at 1.4 grams
per ton. The CIL plant produced 125,300 ounces in the December quarter
compared
with 129,000 ounces in the September quarter, mainly due to a decrease in
throughput.
Total feed to the North heap leach at 2.31 million tons compares with 2.26
million tons in the September quarter. North heap leach yield for the quarter
was maintained at 0.6 grams per ton.
The high pressure grinder roller (HPGR) project at the South heap leach
facilities was commissioned during November, a month ahead of schedule, and
contributed 1,800 ounces. The heap leach facilities produced 47,500 ounces in
the December quarter, 3 per cent higher than the 46,100 ounces produced in the
September quarter.
Operating costs, including gold-in-process movements, at US$82 million (R612
million) in the December quarter were US$2 million lower than the US$84
million
(R657 million) in the September quarter. Operating costs decreased as a result
of the increased gold-in-process at the heap leach sections.
Operating profit at US$109 million (R818 million) in the December quarter
compares with the US$85 million (R663 million) achieved in the September
quarter due to the higher gold price.
Capital expenditure increased from US$33 million (R255 million) to US$37 (R274
million) million for the December quarter, with new mining equipment, the HPGR
project and pre-stripping at the Teberebie cutback being the major items for
the quarter.
Notional cash expenditure for the quarter was US$728 per ounce, compared with
the previous quarter`s US$690 per ounce, reflecting the increased capital
expenditure and reduced production.
Gold production for the March quarter is estimated to increase due to improved
throughput. Capital expenditure should remain unchanged
The estimate for the March 2010 quarter is as follows:
Gold produced - 184,000 ounces
Total cash cost - US$505 per ounce
Capital expenditure - US$37 million
Notional cash expenditure - US$725 per ounce.
Damang
Dec Sep
2009 2009
Gold produced - 000`oz 45.3 51.4
Yield - g/t 1.3 1.3
Total cash cost - US$/oz 643 622
Notional cash expenditure - US$/oz 791 637
Gold production decreased by 12 per cent from 51,400 ounces in the September
quarter to 45,300 ounces in the December quarter. This decrease was mainly due
to a 13 day accelerated re-build of the SAG mill.
Total tons mined, including capital stripping, increased by 32 per cent from
2.5 million tons in September quarter to 3.3 million tons in December quarter.
Ore mined increased from 0.8 million tons to 1.0 million tons and the strip
ratio achieved was 2.40 compared with the September quarter`s 2.00.
Operating costs, including gold-in-process movements, decreased from US$31
million (R246 million) in the September quarter to US$28 million (R212
million)
in the December quarter. This was mainly due to less milling activity as a
result of the SAG mill failure. Total cash cost increased from US$622 per
ounce
to US$643 per ounce reflecting the decrease in ounces produced.
Operating profit increased from US$18 million (R141 million) in the September
quarter to US$21 million (R155 million) in the December quarter.
Capital expenditure increased from US$3 million (R27 million) in the September
quarter to US$6 million (R49 million) for the December quarter mainly due to
the timing of capital projects. The majority of the capital spend was on
exploration activities and the secondary crusher project.
Notional cash expenditure for the quarter was higher at US$791 per ounce
compared with the previous quarter`s US$637 per ounce mainly as a result of
the
timing of the capital projects and the lower production.
Gold production for the March 2010 quarter is estimated to be higher than the
December quarter due to higher mechanical availability of the plant. Capital
expenditure is expected to be higher due to the secondary crusher project and
an increase in exploration drilling.
The estimate for the March 2010 quarter is as follows:
Gold produced - 52,000 ounces
Total cash costs - US$625 per ounce
Capital expenditure - US$9 million
Notional cash expenditure - US$790 per ounce
South America region
Peru
Cerro Corona
Dec Sep
2009 2009
Gold produced - 000`oz 34.5 33.4
Copper produced - tons 10,600 9,100
Total equivalent gold produced - 000` eq oz 98.4 88.5
Total equivalent gold sold - 000` eq oz 99.9 89.1
Yield - gold - g/t 0.7 0.7
- copper - % 0.71 0.62
- combined - g/t 2.0 1.8
Total cash cost - US$/eq oz 378 349
Notional cash expenditure - US$/eq oz 617 599
Gold price * - US$/oz 1,090 966
Copper price * - US$/t 6,546 5,779
* Used to calculate total equivalent gold produced
Gold produced increased by 3 per cent from 33,400 ounces in the September
quarter to 34,500 ounces in the December quarter. Copper produced increased by
16 per cent from 9,100 tons produced in the September quarter to 10,600 tons
produced in the December quarter. During the December quarter concentrate with
payable content of 35,600 ounces of gold was sold at an average gold price of
US$1,083 per ounce and 10,700 tons of copper was sold at an average copper
price of US$6,047 per ton, net of treatment and refining charges. The higher
gold and copper production compared with the September quarter was due to
higher concentrate production, higher metal recoveries and a higher copper
grade of the ore milled.
Total tons mined decreased as planned from 3.91 million tons in the September
quarter to 2.63 million tons during the December quarter. The decrease relates
to a reduction in waste mining in accordance with the mine plan to increase
equipment availability for the construction of the tailings facility. Ore
mined at 1.57 million tons was 3 per cent lower than September quarter`s
1.62 million tons. As a result of the lower waste mined, the strip ratio for
the December quarter at 0.7 was half of the September quarter`s strip ratio
of 1.4.
Ore processed increased from 1.54 million tons in the September quarter to
1.56
million tons in the December quarter, with concentrate production at 49,100
dry
tons in the December quarter compared with 41,200 dry tons in the September
quarter. Gold yield for the quarter was 0.7 grams per ton, in line with the
September quarter and copper yield was 0.71 per cent compared with 0.62 per
cent in the September quarter, reflecting the higher copper head grade.
Operating costs, including gold-in-process movements, increased from US$31
million (R241 million) in the September quarter to US$37 million (R277
million)
in the December quarter. The increased operating cost was mainly due to an
increase in the statutory Workers Legal Participation of profits in line with
higher earnings, increased concentrate freight cost and scheduled plant
maintenance cost. Total cash cost was US$378 per equivalent ounce sold
compared
with US$349 per equivalent ounce sold in the September quarter.
Operating profit at US$72 million (R539 million) compares with US$55 million
(R431 million) in the September quarter, reflecting higher equivalent ounces
and metal prices.
Capital expenditure increased from US$23 million (R176 million) in the
September quarter to US$24 million (R183 million) in the December quarter. The
majority of the expenditure in the December quarter was spent on construction
of the second phase of the Tailings Management Facility.
Notional cash expenditure for the December quarter at US$617 per equivalent
ounce was marginally higher than the previous quarter`s US$599 per equivalent
ounce, mainly due to increased operating cost.
The estimate for the March 2010 quarter is as follows:
Metals (gold and copper) produced - 100,000 equivalent ounces*
Gold produced - 36,600 ounces
Copper produced - 10,200 tons
Total cash cost - US$355 per equivalent ounce
Capital expenditure - US$22 million
Notional cash expenditure - US$575 per equivalent ounce
* Equivalent ounces are based on a gold price of US$1,085 per ounce and copper
price of US$6,700 per ton.
Australasia region
Australia
St Ives
Dec Sep
2009 2009
Gold produced - 000`oz 96.0 100.3
Yield - heap leach - g/t 0.4 0.6
- milling - g/t 2.2 2.4
- combined - g/t 1.7 1.9
Total cash cost - A$/oz 798 841
- US$/oz 724 698
Notional cash expenditure - A$/oz 1,149 1,086
- US$/oz 1,043 901
Gold produced decreased by 4 per cent from 100,300 ounces in the September
quarter to 96,000 ounces in the December quarter.
Gold produced from the Lefroy mill decreased by 4 per cent, from 91,700 ounces
to 88,000 ounces, due to a decrease in head grade to the mill. Production from
the heap leach decreased by 10 per cent, from 8,600 ounces to 7,800 ounces due
to a reduced recovery rate.
At the open pit operations total tons of ore mined for the December quarter at
1.64 million tons, was similar to the 1.63 million tons of ore mined in the
September quarter. Grade increased from 1.12 grams per ton to 1.30 grams per
ton. The increase in grade was mainly due to the commencement of stage one of
the Apollo pit. The average strip ratio, including capital waste, increased
from 2.9 to 4.7 for the quarter as a result of the commencement of the Apollo
pit and a focus on waste removal within the Leviathan pit.
At the underground operations, 370,000 tons of ore was mined at 3.9 grams per
ton for the December quarter, compared with 363,400 tons of ore mined at 4.5
grams per ton in the September quarter. The 14 per cent lower average grade
was
mainly due to lower grades from Belleisle.
Operating costs, including gold-in-process movements, decreased from A$84
million (R545 million) in the September quarter to A$78 million (R532 million)
in the December quarter. The decrease in costs was primarily due to a
reduction
in royalties as a result of the termination last quarter of the Morgan Stanley
royalty. Therefore, no royalty was paid in the December quarter compared with
A$6 million in the September quarter and A$10 million in the June quarter,
giving an effective saving going forward of A$10 million per quarter.
Operating profit increased from A$32 million (R210 million) to A$37 million
(R253 million), mainly due to increased Australian dollar gold price and the
reduced operating costs.
Capital expenditure increased from A$23 million (R152 million) to A$31 million
(R212 million). The increased capital expenditure was primarily due to the
commencement of underground development at Athena and pre-stripping of the
Apollo open pit which is now providing higher grade open pit ore.
Notional cash expenditure increased from A$1,086 per ounce (US$901 per ounce)
in the September quarter to A$1,149 per ounce (US$1,043 per ounce) as a result
of the increased capital expenditure.
The estimate for the March 2010 quarter is as follows:
Gold produced - 100,000 ounces
Total cash cost* - A$755 per ounce (US$680 per ounce)
Capital expenditure* - A$31 million (US$28 million)
Notional cash expenditure* - A$1,140 per ounce (US$1,030 per ounce)
* Based on A$1=US$0.90.
Agnew
Dec Sep
2009 2009
Gold produced - 000`oz 46.9 45.9
Yield - g/t 5.8 6.1
Total cash cost - A$/oz 509 566
- US$/oz 461 470
Notional cash expenditure - A$/oz 856 819
- US$/oz 777 679
Gold production increased 2 per cent from 45,900 ounces in the September
quarter to 46,900 ounces in the December quarter. Tons processed increased
from
235,000 tons in the September quarter to 250,000 tons in the December quarter
with yield marginally lower at 5.8 grams per ton due to increased milling of
low grade stockpiles.
Ore mined from underground increased by 4 per cent from 147,000 tons in the
September quarter at a head grade of 9.5 grams per ton to 153,000 tons in the
December quarter at a head grade of 10.6 grams per ton. The grade increase was
due to mining predominantly in Kim Lode, with only minimal production from the
lower grade Main Lode.
Operating costs, including gold-in-process movements, decreased 13 per cent
from A$26 million (R171 million) in the September quarter to A$23 million
(R158
million) in the December quarter. Costs remained steady with lower processing
costs counter-balancing higher mining costs. Gold-in-process movements had a
net positive impact of A$4 million compared with the prior quarter. Total
cash cost per ounce decreased from A$566 per ounce (US$470 per ounce) in the
September quarter to A$509 per ounce (US$461 per ounce) in the December
quarter.
Operating profit increased from A$26 million (R170 million) in the September
quarter to A$34 million (R229 million) in the December quarter. This was
primarily due to increased revenue resulting from the higher Australian dollar
gold price, improved production volumes and the net A$4 million change in
gold-in-process movements.
Capital expenditure was higher at A$15 million (R100 million) compared with
A$13 million (R81 million) in the September quarter. This was mainly due to
additional expenditure on exploration drilling in Kim Lode.
Notional cash expenditure increased from A$819 per ounce (US$679 per ounce) in
the September quarter to A$856 per ounce (US$777 per ounce) in the December
quarter due to increased capital expenditure.
The estimate for the March 2010 quarter is as follows:
Gold produced - 48,000 ounces
Total cash cost* - A$560 per ounce (US$505 per ounce)
Capital expenditure* - A$14 million (US$12 million)
Notional cash expenditure* - A$850 per ounce (US$765 per ounce)
* Based on A$1=US$0.90.
Quarter ended 31 December 2009
compared with quarter ended 31
December 2008
Group attributable gold production increased by 7 per cent from 839,000 ounces
for the quarter ended December 2008 to 900,000 ounces for the quarter ended
December 2009.
At the South African operations gold production increased from 501,000 ounces
to 523,000 ounces. Driefontein`s gold production decreased by 4 per cent from
195,000 ounces to 187,000 ounces due to a decrease in volumes mined related
largely to safety factors. At Kloof, gold production increased by 3 per cent
from 152,000 ounces to 157,000 ounces due to the completion of the
refurbishment of Main shaft late in the December 2008 quarter.
Beatrix`s gold production was flat at 107,000 ounces. South Deep`s gold
production increased from 47,000 ounces to 72,000 ounces due to the mine being
in a build-up phase.
At the West African operations total managed gold production increased from
190,000 ounces for the quarter ended December 2008 to 218,000 ounces for the
quarter ended December 2009. Damang`s gold production decreased by 11 per cent
to 45,000 ounces, due to a 13 day accelerated re-build of the mill during the
December 2009 quarter. Tarkwa increased by 24 per cent to 173,000 ounces due
to the completion of the expanded CIL plant.
In South America, gold equivalent production at Cerro Corona increased from
62,000 ounces in the December 2008 quarter to 98,000 ounces in the December
2009 quarter. This time last year the mine was still in a build-up phase.
At the Australasian operations gold production decreased by 7 per cent from
154,000 ounces in the December 2008 quarter to 143,000 ounces in the December
2009 quarter. St Ives decreased by 12 per cent from 109,000 ounces to 96,000
ounces. This was mainly due to a reduction in throughput and lower grades from
surface and underground ore. Production at Agnew increased by 4 per cent to
47,000 due to increased volumes from the higher grade Kim Lode.
Revenue increased by 14 per cent from R7,074 million (US$718 million) to
R8,067
million (US$1,076 million). The 6 per cent higher average gold price at
R263,828 per kilogram (US$1,096 per ounce) compares with R250,058 per kilogram
(US$792 per ounce) achieved for the quarter ended December 2008. The US dollar
strengthened from US$1 = R9.82 to US$1 = R7.49 or 24 per cent, while the
rand/Australian dollar weakened by 1 per cent from A$1 =
R6.70 to R6.80.
Operating costs, including gold-in-process movements, increased from R4,509
million (US$450 million) to R4,589 million (US$613 million). The increase in
costs was mainly due to annual wage increases and increases in electricity
costs at the South African operations. Total cash cost for the Group decreased
from R153,893 per kilogram (US$487 per ounce) to R147,648 per kilogram (US$613
per ounce) due to increased gold production, partially offset by higher costs.
At the South African operations operating costs increased by 15 per cent from
R2,430 million (US$239 million) for the December 2008 quarter to R2,798
million
(US$374 million) for the December 2009 quarter. This was due to the annual
wage
increase, an approximate 36 per cent increase in electricity costs and normal
inflationary increases in stores and contractors, partially offset by the cost
saving initiatives implemented during the year. Total cash cost at the South
African operations increased from R148,944 per kilogram to R165,707 per
kilogram as a result of the above.
At the West African operations, operating costs, including gold-in-process
movements, were similar at US$110 million. At the South American operation,
operating costs including gold-in-process movements at Cerro Corona increased
from US$26 million in the December 2008 quarter to US$37 million in the
December 2009 quarter in line with the increase in production.
At the Australian operations, operating costs including gold-in-process
movements, decreased from A$115 million to A$101 million mainly due to the
termination of the Morgan Stanley royalty at St Ives.
Operating profit increased from R2,566 million (US$268 million) to R3,478
million (US$463 million).
After accounting for the above items, amoritsation, sundry costs and taxation,
net earnings amounted to R1,409 million (US$187 million), compared with R483
million (US$54 million) for the quarter ended December 2008.
Earnings excluding exceptional items, gains and losses on foreign exchange,
financial instruments and gains or losses of associates after taxation,
amounted to R1,022 million (US$135 million) for the quarter ended December
2009, compared with R542 million (US$60 million) for the quarter ended
December
2008.
Exploration and corporate development
Activities by the Gold Fields Exploration Group remained at a high level
during
the quarter with drilling programmes on nine greenfields projects in six
countries (Australia, Philippines, Peru, Chile, Canada and Kyrgyzstan) as well
as at the near mine exploration at St Ives, Agnew and Damang.
In addition to the ongoing exploration projects, the Group maintains an
aggressive business development function to seek out and evaluate the most
attractive exploration opportunities available for joint ventures or
acquisitions largely within the countries and belts in which Gold Fields is
currently active.
Advanced drilling projects
At the Chucapaca Project in southern Peru, where Gold Fields expects to earn a
51 per cent interest in a joint venture with Buenaventura during the March
quarter (NYSE "BVN"), initial resource delineation drilling continued on the
Canahuire target and is scheduled for completion during the March quarter.
Initial drilling commenced on the Katrina satellite targets during the
quarter.
In addition to resource estimation and pit optimisation, other elements of the
scoping study (including metallurgical test work, site studies, operating and
capital cost estimations) are in progress and on track for completion by the
end of March 2010.
At the Talas Project in northern Kyrgyzstan, where Gold Fields can earn up to
a
70 per cent interest in a joint venture with Orsu Metals Corporation (TSX:
"OSU" and AIM: "OSU"), resource delineation drilling was concluded in November
2009 at the Taldybulak Au-Cu porphyry target. Other key components of the
internal scoping study are in progress including metallurgical test work, site
layout studies, costing, block modelling and pit optimisations. Internal
scoping is expected to be completed during the March quarter.
At the Yanfolila Project (including the Komana and Sankarani Projects) in
southern Mali, Gold Fields completed the purchase of all of the outstanding
shares of Glencar Mining during the December quarter and now controls a large
position (
191,000 hectares) in the Yanfolila Belt. Field activities resumed
in
October 2009 with an aggressive resource delineation drilling programme at the
Komana East and West deposit areas. Other exploration activities in the belt
include initial drilling programmes at the Bokoro targets on the Sankarani
licenses and target definition surveys on several prospect areas within the
Solona license.
At the Arctic Platinum Project in Finland, a 10-hole, 1,000 metre drilling
programme commenced in January 2010 to provide sample material for
metallurgical test work which will investigate the complete process from ore
preparation through flotation to hydrometallurgical treatment of the flotation
concentrate. Other activities to be completed during the year include external
engineering reviews of the 2005 and 2008 feasibility studies, and, the 2009
hydrometallurgical process (Platsol) desktop study in order to update the
capital and operating costs for the total project as well as external audits
and updates of the KonttijArvi, Ahmavaara, Vaaralampi and SK Reef resource
models.
Initial drilling projects
At the East Lachlan joint ventures in New South Wales, Australia, where Gold
Fields is earning into an 80 per cent interest in four porphyry Au-Cu project
areas from Clancy Exploration Ltd (ASX:"CLY"), diamond drilling at the Myall
Project has intersected significant sections of potassic alteration with
associated sulphide (chalcopyrite-pyrite +/- bornite) and quartz veining. At
Cowal East a diamond drilling programme is currently testing three targets.
Significant potassic magnetite-biotite-pyrite+/-chalcopyrite alteration of
diorite and volcanics was intersected at the Eurowie target which is
characteristic of the alteration present in the upper disseminated zone of the
Cadia East porphyry Cu-Au deposit. Results are awaited. A detailed
aeromagnetic
survey has been completed at the Wellington North Project and processing will
be completed in the March quarter. Significant copper and zinc anomalism has
been identified in aircore drilling at the Currumburrama Option project which
is coincident with the main geophysical target zone, and consistent with a
Lake
Cowal style mineralised system.
At the Batangas joint venture in the Philippines, where Gold Fields can earn
up
to a 75 per cent interest in a joint venture with Mindoro Resources Ltd.
(TSX.V: "MIO"), initial diamond drilling is in progress on the El Paso
porphyry
Cu-Au target. A project-wide, detailed aeromagnetic survey was completed in
December 2009 which is expected to provide a framework for further targeting
and focussing exploration over an area of about 28,000 hectares.
At the SBX joint venture in Chile, where Gold Fields can earn up to 90 per
cent
on three claims held by SBX Asesorias e Inversiones and 100 per cent on a
fourth property under a separate option agreement with S.C.M. Aguas Heladas,
field activities resumed in October 2009 after the winter hiatus. A CSAMT
geophysical survey and follow-up diamond drilling were completed at the Pircas
project where scout RC drilling in financial 2009 had intersected significant
Au mineralisation associated with oxidised structurally-controlled vuggy
silica
breccias. Drilling will continue in the March quarter to test a large
resistivity anomaly detected by the CSAMT survey.
At the Woodjam Project in B.C., Canada, Gold Fields can earn up to a 75 per
cent interest in the Woodjam North joint venture with the Woodjam Partners
(Fjordland Exploration Inc. (TSX.V: "FEX") and Cariboo Rose Resources (TSX.V:
"CRB")). Field work included geological mapping, soil geochemical sampling,
IP-resistivity and gravity geophysical surveys, an aeromagnetics survey and
4,583 metres of initial diamond drilling in 14 holes on the Takom and Deerhorn
porphyry Au-Cu targets.
At the Toodoggone joint venture in B.C., Canada, where Gold Fields can earn up
to a 75 per cent interest in a joint venture with Cascadero Copper Corp.
(TSX.V: "CCD"), the initial diamond drilling programme concluded for the
season
in October 2009. In December 2009, Gold Fields received written notification
from the First Nations tribal groups in the Toodoggone project area stating
their opposition to mining and mineral exploration. This declaration
contradicts their previous position which had supported the exploration
activity. Clarification will be sought in further discussions with the First
Nations groups before planning further work on the project.
Near mine exploration
At St. Ives in Western Australia, the outcome of exploration efforts over the
past twelve to eighteen months is that the Argo - Athena camp is now
recognised
as a significant new field and requires an accelerated exploration strategy to
support sustainable growth. The exploration team has been tasked to prepare a
sustained 3-year exploration programme and budget to advance open pit and
underground projects in this camp. Success with new open-pittable resources
has
also been achieved at Hamlet, Apollo and Dianna, with emerging potential at
Yorrick and Poseidon. Additional funding has been granted to accelerate the
Hamlet, Poseidon and Yorrick projects.
At Athena the mining of the decline is on schedule. At Yorick South, drilling
focused on shallow high grade areas and results from recent reverse
circulation
(RC) drilling are showing similarities to mineralisation at Hamlet. At
Poseidon, diamond and RC drilling are indicating a larger mineralised system
than the original models with emerging potential for new open-pittable
resources.
Resource definition and extensional drilling programmes continue with
encouraging results at the Cave Rocks, Northern Naiad and Argo underground
mines. Good progress is being made with the ongoing review and consolidation
of
modelling and resource estimation at the Revenge, Neptune, and Leviathan
surface mines. At Apollo, within the Argo - Athena camp, mining was able to
start a month earlier than planned and extensional drilling was completed.
At Agnew, indicative results from the surface directional drilling programme
suggest that the Kim Lode below current infra-structure maintains a 4 metre
true width averaging +5 gram per ton Au over a strike length of 250-275
metres.
The adjacent Edmunds Lode averages a 3 metre true width at +5 gram per ton Au
and has a strike length of 80-120 metres. At least one area of bulk mining
potential has been identified.
At Damang, the phase 1 drilling programme at Huni Gap within the Greater
Damang
project has been completed. Assay results have confirmed continuity of
mineralisation in this gap between the Huni and DCPB pit shells. To the
immediate south of the DPCB, at Juno, drilling has commenced on a combined RC
and diamond drilling infill programme within the limits of the previous pit
shell. The initial RC drilling is showing prominent veining with sulphide
mineralisation in all lithologies below the pit floor. Further to the south,
drill pad preparation and resource modelling are in progress at the Nyame and
Tamang projects, all of which make up the Greater Damang project. At Abosso
Deeps, which is a conglomer ate reef underground mining project, the deeper
Phase 1B drilling was delayed until mid-January due to the lack of drill rig
availability.
At Cerro Corona, in Peru there has been no activity during the quarter. In the
aftermath of the community unrest experienced in September 2009 against
exploration in the Hualgayoc District, the Gold Fields - Buenaventura joint
venture decided to declare an indefinite suspension of field activities. The
situation is continually monitored and field activities will resume when
appropriate.
Corporate development
Business development activities this quarter included the successful
conclusion
of two new greenfields exploration deals in South America. One is a joint
venture to earn-in up to 70 per cent of selected properties owned by Vena
Resources Inc. (TSX.V: "VEM") in the Esquilache District which is located
within the region around the Chucapaca Project in Southern Peru. The other is
an option to acquire 100 per cent of the Pedernales Project from a private
owner. The Pedernales property is located in the vicinity of the SBX joint
venture and Pircas projects in northern Chile. Evaluations and negotiations
are
in progress for other attractive acquisitions and joint ventures close to our
existing projects and operations in the Philippines, Australia, Ghana, Mali,
Peru and Kyrgyzstan.
Corporate
Appointment to the Gold Fields Board of Directors
On 18 November 2009 Gold Fields announced the appointment of Mr Paul Schmidt
CA
(SA) as Financial Director with effect from 6 November 2009. Paul was promoted
to Chief Financial Officer of the Group on 1 January 2009.
Cash 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 72: 50 SA cents per share
- last date to trade cum-dividend: Friday 19 February 2010
- sterling and US dollar conversion date: Monday 22 February 2010
- trading commences ex-dividend: Monday 22 February 2010
- record date: Friday 26 February 2010
- payment date: Monday 1 March 2010
Share certificates may not be dematerialised or rematerialised between Monday,
22 February 2010 and Friday, 26 February 2010, both dates inclusive.
Outlook
In the March 2010 quarter attributable gold production is estimated at 850,000
attributable equivalent ounces, with a decrease in production at the South
Africa region due to the slow start-up after the Christmas break. Production
at
all the other regions is expected to increase. Total cash cost is estimated at
US$650 per ounce (R156,000 per kilogram) compared with US$613 per ounce
(R147,648 per kilogram) in the December quarter. The March estimate is based
on
an exchange rate of R/US$7.45 and US$/A$0.90 compared with R/US$7.49 and
US$/A$0.91 achieved in the December quarter. NCE is estimated at US$950 per
ounce (R228,000 per kilogram) compared with US$900 per ounce (R216,830 per
kilogram) in the December quarter. The above is subject to the forward looking
statement. The estimated financial information has not been reviewed and
reported on by Gold Fields` auditors in accordance with Section 8.40 (a) of
the
Listing Requirements of the JSE Securities Exchange of South Africa.
Basis of accounting
The condensed consolidated preliminary financial information is prepared in
accordance with IAS 34 Interim Financial Reporting.
The accounting policies and disclosure requirements used in the preparation of
this report are consistent with those applied in the previous financial year
except for the adoption of applicable revised and/or new standards issued by
the International Accounting Standards Board.
N.J. Holland
Chief Executive Officer
4 February 2010
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
December September December
SOUTH AFRICAN RAND 2009 2009 2008
Revenue 8,066.9 7,415.8 7,074.4
Operating costs, net 4,589.0 4,628.6 4,508.5
- Operating costs 4,665.4 4,644.1 4,542.3
- Gold inventory change (76.4) (15.5) (33.8)
Operating profit 3,477.9 2,787.2 2,565.9
Amortisation and depreciation 1,156.0 1,173.8 1,032.8
Net operating profit 2,321.9 1,613.4 1,533.1
Net interest paid (23.1) (49.2) (164.2)
Share of gain/(loss) of associates
after taxation 43.8 (15.8) (46.6)
Gain/(loss) on foreign exchange 7.7 (62.7) 45.5
Loss on financial instruments (54.7) (131.8) (65.9)
Share-based payments (121.1) (120.1) (94.3)
Other (25.3) (5.4) (51.5)
Exploration (167.7) (132.8) (136.1)
Profit before taxation and exceptional
items 1,981.5 1,095.6 1,020.0
Exceptional gain/(loss) 432.0 666.8 (5.0)
Profit before taxation 2,413.5 1,762.4 1,015.0
Mining and income taxation 831.4 638.1 496.1
- Normal taxation 403.6 332.5 119.5
- Royalties 107.5 97.5 79.0
- Deferred taxation 320.3 208.1 297.6
Net profit 1,582.1 1,124.3 518.9
Attributable to:
- Owners of the parent 1,408.6 1,007.2 483.1
- Non-controlling interest 173.5 117.1 35.8
Exceptional items:
Profit on sale of investments 30.0 728.7 1.6
Profit/(loss) on sale of assets 0.1 1.0 (2.9)
Restructuring costs 2.6 (5.8) (2.9)
Insurance claim - South Deep - - (0.8)
Gain on financial instrument 402.1 - -
Impairment of investments (2.8) (57.1) -
Total exceptional items 432.0 666.8 (5.0)
Taxation (57.3) (114.6) 0.8
Net exceptional items after taxation
and minorities 374.7 552.2 (4.2)
Net earnings 1,408.6 1,007.2 483.1
Net earnings per share (cents) 200 143 74
Diluted earnings per share (cents) 198 141 69
Headline earnings 1,381.4 451.6 484.1
Headline earnings per share (cents) 196 64 74
Net earnings excluding gains and losses
on foreign exchange, financial
instruments, exceptional items and
share of profit/( loss) of associates
after taxation 1,021.9 624.8 542.3
Net earnings per share excluding gains
and losses on foreign exchange,
financial instruments, exceptional
items and share of profit/(loss) of
associates after taxation (cents) 145 89 83
Gold sold - managed kg 30,576 30,750 28,291
Gold price received R/kg 263,828 241,164 250,058
Total cash cost R/kg 147,648 147,343 153,893
Six months to
December December
SOUTH AFRICAN RAND 2009 2008
Revenue 15,482.7 12,798.0
Operating costs, net 9,217.6 8,658.2
- Operating costs 9,309.5 8,775.5
- Gold inventory change (91.9) (117.3)
Operating profit 6,265.1 4,139.8
Amortisation and depreciation 2,329.8 1,934.3
Net operating profit 3,935.3 2,205.5
Net interest paid (72.3) (275.7)
Share of gain/(loss) of associates after taxation 28.0 (150.8)
Gain/(loss) on foreign exchange (55.0) 39.4
Loss on financial instruments (186.5) (121.7)
Share-based payments (241.2) (188.2)
Other (30.7) (72.5)
Exploration (300.5) (203.8)
Profit before taxation and exceptional items 3,077.1 1,232.2
Exceptional gain/(loss) 1,098.8 109.4
Profit before taxation 4,175.9 1,341.6
Mining and income taxation 1,469.5 753.0
- Normal taxation 736.1 256.4
- Royalties 205.0 145.6
- Deferred taxation 528.4 351.0
Net profit 2,706.4 588.6
Attributable to:
- Owners of the parent 2,415.8 522.3
- Non-controlling interest 290.6 66.3
Exceptional items:
Profit on sale of investments 758.7 0.7
Profit/(loss) on sale of assets 1.1 (1.0)
Restructuring costs (3.2) (21.7)
Insurance claim - South Deep - 131.4
Gain on financial instrument 402.1 -
Impairment of investments (59.9) -
Total exceptional items 1,098.8 109.4
Taxation (171.9) (45.3)
Net exceptional items after taxation and minorities 926.9 64.1
Net earnings 2,415.8 522.3
Net earnings per share (cents) 343 80
Diluted earnings per share (cents) 339 75
Headline earnings 1,833.0 523.0
Headline earnings per share (cents) 260 80
Net earnings excluding gains and losses on foreign
exchange, financial instruments, exceptional items and
share of profit/(loss) of associates after taxation 1,646.7 662.6
Net earnings per share excluding gains and losses on
foreign exchange, financial instruments, exceptional
items and share of profit/(loss) of associates after
taxation (cents) 234 101
Gold sold - managed kg 61,326 54,596
Gold price received R/kg 252,464 234,413
Total cash cost R/kg 147,495 153,685
Statement of comprehensive income
International Financial Reporting Standards Basis
Quarter
December September December
SOUTH AFRICAN RAND 2009 2009 2008
Net profit for the quarter 1,582.1 1,124.3 518.9
Other comprehensive income/(expenses),
net of tax 587.6 (953.2) 1,442.2
Marked to market valuation of listed
investments (10.9) (197.3) (827.3)
Currency translation adjustments and
other 608.9 (846.2) 2,255.6
Share of equity investee`s other
comprehensive income 0.7 11.7 13.9
Deferred taxation on marked to market
valuation of listed investments (11.1) 78.6 -
Total comprehensive income for the
quarter 2,169.7 171.1 1,961.1
Attributable to:
- Owners of the parent 1,979.0 78.7 1,892.5
- Non-controlling interest 190.7 92.4 68.6
2,169.7 171.1 1,961.1
Six months to
December December
SOUTH AFRICAN RAND 2009 2008
Net profit for the quarter 2,706.4 588.6
Other comprehensive income/(expenses), net of tax (365.6) (15.8)
Marked to market valuation of listed investments (208.2) (1,710.5)
Currency translation adjustments and other (237.3) 1,604.4
Share of equity investee`s other comprehensive income 12.4 90.3
Deferred taxation on marked to market valuation of
listed investments 67.5 -
Total comprehensive income for the quarter 2,340.8 572.8
Attributable to:
- Owners of the parent 2,057.7 474.9
- Non-controlling interest 283.1 97.9
2,340.8 572.8
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
December September December
UNITED STATES DOLLARS 2009 2009 2008
Revenue 1,075.6 948.3 718.1
Operating costs, net 613.0 591.9 450.0
- Operating costs 623.0 593.9 452.6
- Gold inventory change (10.0) (2.0) (2.6)
Operating profit 462.6 356.4 268.1
Amortisation and depreciation 154.4 150.1 103.8
Net operating profit 308.2 206.3 164.3
Net interest paid (3.2) (6.3) (17.0)
Share of gain/(loss) of associates
after taxation 5.7 (2.0) (3.7)
Gain/(loss) on foreign exchange 0.8 (8.0) 5.3
Loss on financial instruments (7.5) (16.9) (6.7)
Share-based payments (16.1) (15.4) (9.3)
Other (3.3) (0.7) (5.6)
Exploration (22.3) (17.0) (14.5)
Profit before taxation and exceptional
items 262.3 140.0 112.8
Exceptional gain/(loss) 58.3 85.3 (2.3)
Profit before taxation 320.6 225.3 110.5
Mining and income taxation 110.5 81.6 52.6
- Normal taxation 53.7 42.5 11.5
- Royalties 14.3 12.5 8.0
- Deferred taxation 42.5 26.6 33.1
Net profit 210.1 143.7 57.9
Attributable to:
- Owners of the parents 187.1 128.7 54.2
- Non-controlling interest 23.0 15.0 3.7
Exceptional items:
Profit on sale of investments 6.0 93.2 0.2
Profit/(loss) on sale of assets - 0.1 (0.3)
Restructuring costs 0.3 (0.7) (0.1)
Insurance claim - South Deep - - (2.1)
Gain on financial instrument 52.6 - -
Impairment of investments (0.6) (7.3) -
Total exceptional items 58.3 85.3 (2.3)
Taxation (7.8) (14.7) 0.8
Net exceptional items after taxation
and minorities 50.5 70.6 (1.5)
Net earnings 187.1 128.7 54.2
Net earnings per share (cents) 27 18 8
Diluted earnings per share (cents) 26 18 7
Headline earnings 182.0 57.7 54.6
Headline earnings per share (cents) 26 8 8
Net earnings excluding gains and losses
on foreign exchange, financial
instruments, exceptional items and
share of profit/(loss) of associates
after taxation 135.4 79.9 59.9
Net earnings per share excluding gains
and losses on foreign exchange,
financial instruments, exceptional
items and share of profit/(loss) of
associates after taxation (cents) 20 11 10
South African rand/United States dollar
conversion rate 7.49 7.82 9.82
South African rand/Australian dollar
conversion rate 6.80 6.49 6.70
Gold sold - managed ozs (000) 983 989 910
Gold price received US$/oz 1,096 959 792
Total cash cost US$/oz 613 586 487
Six months to
December December
UNITED STATES DOLLARS 2009 2008
Revenue 2,023.9 1,457.6
Operating costs, net 1,204.9 986.1
- Operating costs 1,216.9 999.5
- Gold inventory change (12.0) (13.4)
Operating profit 819.0 471.5
Amortisation and depreciation 304.5 220.3
Net operating profit 514.5 251.2
Net interest paid (9.5) (31.4)
Share of gain/(loss) of associates after taxation 3.7 (17.2)
Gain/(loss) on foreign exchange (7.2) 4.5
Loss on financial instruments (24.4) (13.9)
Share-based payments (31.5) (21.4)
Other (4.0) (8.3)
Exploration (39.3) (23.2)
Profit before taxation and exceptional items 402.3 140.3
Exceptional gain/(loss) 143.6 12.5
Profit before taxation 545.9 152.8
Mining and income taxation 192.1 85.8
- Normal taxation 96.2 29.2
- Royalties 26.8 16.6
- Deferred taxation 69.1 40.0
Net profit 353.8 67.0
Attributable to:
- Owners of the parents 315.8 59.4
- Non-controlling interest 38.0 7.6
Exceptional items:
Profit on sale of investments 99.2 0.1
Profit/(loss) on sale of assets 0.1 (0.1)
Restructuring costs (0.4) (2.5)
Insurance claim - South Deep - 15.0
Gain on financial instrument 52.6 -
Impairment of investments (7.9) -
Total exceptional items 143.6 12.5
Taxation (22.5) (5.2)
Net exceptional items after taxation and minorities 121.1 7.3
Net earnings 315.8 59.4
Net earnings per share (cents) 45 9
Diluted earnings per share (cents) 44 8
Headline earnings 239.7 59.6
Headline earnings per share (cents) 34 9
Net earnings excluding gains and losses on foreign
exchange, financial instruments, exceptional items
and share of profit/(loss) of associates after taxation 215.3 75.5
Net earnings per share excluding gains and losses on
foreign exchange, financial instruments, exceptional
items and share of profit/(loss) of associates after
taxation (cents) 31 12
South African rand/United States dollar conversion
rate 7.65 8.78
South African rand/Australian dollar conversion rate 6.64 6.82
Gold sold - managed ozs (000) 1,972 1,755
Gold price received US$/oz 1,026 830
Total cash cost US$/oz 600 544
Statement of comprehensive income
International Financial Reporting Standards Basis
Quarter
December September December
UNITED STATES DOLLARS 2009 2009 2008
Net profit for the quarter 210.1 143.7 57.9
Other comprehensive income/(expenses),
net of tax (138.0) 372.8 (776.0)
Marked to market valuation of listed
investments (1.9) (25.3) (80.7)
Currency translation adjustments
and other (134.9) 386.5 (696.0)
Share of equity investee`s other
comprehensive income 0.1 1.5 0.7
Deferred taxation on marked to market
valuation of listed investments (1.3) 10.1 -
Total comprehensive income/(expenses)
for the quarter 72.1 516.5 718.1
Attributable to:
- Owners of the parent 60.4 474.8 (676.5)
- Non-controlling interest 11.7 41.7 (41.6)
72.1 516.5 (718.1)
Six months to
December December
UNITED STATES DOLLARS 2009 2008
Net profit for the quarter 353.8 67.0
Other comprehensive income/(expenses), net of tax 234.7 (914.0)
Marked to market valuation of listed investments (27.2) (194.8)
Currency translation adjustments and other 251.5 (729.5)
Share of equity investee`s other comprehensive income 1.6 10.3
Deferred taxation on marked to market valuation of
listed investments 8.8 -
Total comprehensive income/(expenses) for the quarter 588.5 (847.0)
Attributable to:
- Owners of the parent 535.1 (801.1)
- Non-controlling interest 53.4 (45.9)
588.5 (847.0)
Reconciliation of headline earnings with net earnings
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
December September December
2009 2009 2008
Net earnings 1,408.6 1,007.2 483.1
Profit on sale of investments (30.0) (728.7) (1.6)
Taxation effect on sale of investments - 116.6 -
(Profit)/loss on sale of assets (0.1) (1.0) 2.9
Taxation effect of profit/(loss) on
sale of fixed assets 0.1 0.4 (0.3)
Impairment of investments and other 2.8 57.1 -
Headline earnings 1,381.4 451.6 484.1
Headline earnings per share - cents 196 64 74
Based on headline earnings as given
above divided by 705,213,542 for
December 2009(September 2009 - 704,878,283
and December 2008 - 653,341,082) being the
weighted average number of ordinary
shares in issue.
UNITED STATES DOLLARS
December September December
2009 2009 2008
Net earnings 187.1 128.7 54.2
Profit on sale of investments (6.0) (93.2) (0.2)
Taxation effect on sale of investments 0.3 14.9 -
(Profit)/loss on sale of assets - (0.1) 0.3
Taxation effect of profit/(loss) on
sale of fixed assets - 0.1 -
Impairment of investments and other 0.6 7.3 0.3
Headline earnings 182.0 57.7 54.6
Headline earnings per share - cents 26 8 8
Based on headline earnings as given
above divided by 705,213,542 for
December 2009(September 2009 - 704,878,283
and December 2008 - 653,341,082) being the
weighted average number of ordinary
shares in issue.
Balance sheet
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
December June
2009 2009
Property, plant and equipment 51,647.5 48,337.4
Goodwill 4,458.9 4,458.9
Non-current assets 921.8 886.7
Investments 1,646.5 2,970.8
Current assets 7,601.7 8,548.1
- Other current assets 5,773.5 5,744.2
- Cash and deposits 1,828.2 2,803.9
Total assets 66,276.4 65,201.9
Shareholders` equity 44,725.2 42,669.4
Deferred taxation 6,549.8 6,128.8
Long-term loans 4,822.7 6,334.3
Environmental rehabilitation provisions 2,325.0 2,267.9
Post-retirement health care provisions 21.2 20.5
Other long-term provisions 29.6 31.2
Current liabilities 7,802.9 7,749.8
- Other current liabilities 4,128.8 5,188.6
- Current portion of long-term loans 3,674.1 2,561.2
Total equity and liabilities 66,276.4 65,201.9
South African rand/US dollar conversion rate
South African rand/Australian dollar conversion rate
UNITED STATES DOLLARS
December June
2009 2009
Property, plant and equipment 6,751.3 5,997.2
Goodwill 582.9 553.2
Non-current assets 120.5 110.0
Investments 215.2 368.6
Current assets 993.7 1,060.6
- Other current assets 754.7 712.7
- Cash and deposits 239.0 347.9
Total assets 8,663.6 8,089.6
Shareholders` equity 5,846.4 5,294.0
Deferred taxation 856.2 760.4
Long-term loans 630.4 785.9
Environmental rehabilitation provisions 303.9 281.4
Post-retirement health care provisions 2.8 2.5
Other long-term provisions 3.9 3.9
Current liabilities 1,020.0 961.5
- Other current liabilities 539.7 643.7
- Current portion of long-term loans 480.3 317.8
Total equity and liabilities 8,663.6 8,089.6
South African rand/US dollar conversion rate 7.65 8.06
South African rand/Australian dollar conversion rate 6.72 6.43
Debt maturity ladder
Figures are in millions unless otherwise stated
F2010 F2011 F2012
Available loan facilities (committed and
uncommitted), including preference
shares and commercial paper
R`million 4,712.0 856.4 -
US$`million 4.0 321.9 513.0
Dollar debt translated to rand 30.6 2,462.7 3,923.9
Total (R`m) 4,742.6 3,319.1 3,923.9
Utilisation - Loan facilities (committed
and uncommitted), including preference
shares and commercial paper
R`million 3,410.0 856.4 -
US$`million 4.0 10.9 461.9
Dollar debt translated to rand 30.6 83.6 3,533.9
Total (R`m) 3,440.6 940.0 3,533.9
Long-term loans per balance sheet (R`m)
Current portion of long-term loans per
balance sheet (R`m)
Total loans per balance sheet (R`m)
F2013
to F2017 Total
Available loan facilities (committed and uncommitted),
including preference shares and commercial paper
R`million 2,500.0 8,068.4
US$`million 76.1 915.0
Dollar debt translated to rand 582.2 6,999.4
Total (R`m) 3,082.2 15,067.8
Utilisation - Loan facilities (committed and
uncommitted), including preference shares
and commercial paper
R`million - 4,266.4
US$`million 76.1 552.9
Dollar debt translated to rand 582.3 4,230.4
Total (R`m) 582.3 8,496.8
Long-term loans per balance sheet (R`m) 4,822.7
Current portion of long-term loans per balance sheet (R`m) 3,674.1
Total loans per balance sheet (R`m) 8,496.8
Exchange rate: US$1 = R7.65 being the closing rate at the end of the December
2009 quarter.
Condensed statement of changes in equity
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
DECEMBER 2009 QUARTER
Share capital and Other Retained
premium reserves earnings
Balance as at 30 September 2009 31,478.8 (1,944.1) 10,319.3
Total comprehensive income - 570.4 1,408.6
Profit for the quarter - - 1,408.6
Other comprehensive income - 570.4 -
Share-based payments - 121.1 -
Transactions with minority
interest - - -
Exercise of employee share
options 24.7 - -
Balance as at 31 December 2009 31,503.5 (1,252.6) 11,727.9
Non-controlling Total
interest equity
Balance as at 30 September 2009 2,612.0 42,466.0
Total comprehensive income 190.7 2,169.7
Profit for the quarter 173.5 1,582.1
Other comprehensive income 17.2 587.6
Share-based payments - 121.1
Transactions with minority interest (56.3) (56.3)
Exercise of employee share options - 24.7
Balance as at 31 December 2009 2,746.4 44,725.2
UNITED STATES DOLLARS
DECEMBER 2009 QUARTER
Share capital Other Retained
and premium reserves earnings
Balance as at 30 September 2009 4,591.6 (597.7) 1,413.8
Total comprehensive
(expenses)/income - (126.7) 187.1
Profit for the quarter - - 187.1
Other comprehensive
(expenses)/income - (126.7) -
Share-based payments - 16.1 -
Transactions with minority interest - - -
Exercise of employee share options 3.2 - -
Balance as at 31 December 2009 4,594.8 (708.3) 1,600.9
Non-controlling Total
interest equity
Balance as at 30 September 2009 354.4 5,762.1
Total comprehensive (expenses)/income 11.7 72.1
Profit for the quarter 23.0 210.1
Other comprehensive (expenses)/income (11.3) (138.0)
Share-based payments - 16.1
Transactions with minority interest (7.1) (7.1)
Exercise of employee share options - 3.2
Balance as at 31 December 2009 359.0 5,846.4
SOUTH AFRICAN RAND
DECEMBER 2008 QUARTER
Share capital Other Retained
and premium reserves earnings
Balance as at 30 September 2008 31,371.7 (907.3) 8,576.3
Total comprehensive income - 1,409.4 483.1
Profit for the quarter - - 483.1
Other comprehensive income - 1,409.4 -
Dividends paid - - (0.3)
Share-based payments - 94.3 -
Exercise of employee share options 9.2 - -
Balance as at 31 December 2008 31,380.9 596.4 9,059.1
Non-controlling Total
interest equity
Balance as at 30 September 2008 2,177.4 41,218.1
Total comprehensive income 68.6 1,961.1
Profit for the quarter 35.8 518.9
Other comprehensive income 32.8 1,442.2
Dividends paid - (0.3)
Share-based payments - 94.3
Exercise of employee share options - 9.2
Balance as at 31 December 2008 2,246.0 43,282.4
UNITED STATES DOLLARS
DECEMBER 2008 QUARTER
Share capital Other Retained
and premium reserves earnings
Balance as at 30 September 2008 4,579.4 (868.1) 1,211.8
Total comprehensive
(expenses)/income - (730.7) 54.2
Profit for the quarter - - 54.2
Other comprehensive
(expenses)/income - (730.7) -
Share-based payments - 9.3 -
Exercise of employee share options 1.0 - -
Balance as at 31 December 2008 4,580.4 (1,589.5) 1,266.0
Non-controlling Total
interest equity
Balance as at 30 September 2008 274.6 5,197.7
Total comprehensive (expenses)/income (41.6) (718.1)
Profit for the quarter 3.7 57.9
Other comprehensive (expenses)/income (45.3) (776.0)
Share-based payments - 9.3
Exercise of employee share options - 1.0
Balance as at 31 December 2008 233.0 4,489.9
Cash flow statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
December September December
SOUTH AFRICAN RAND
2009 2009 2008
Cash flows from operating activities 2,105.1 1,263.0 1,787.1
Profit before tax and exceptional
items 1,981.5 1,095.6 1,020.0
Exceptional items 432.0 666.8 (5.0)
Amortisation and depreciation 1,156.0 1,173.8 1,032.8
Change in working capital (949.2) (506.6) (269.2)
Taxation paid (123.4) (704.6) (132.5)
Other non-cash items (391.8) (462.0) 141.0
Dividends paid - (564.1) (0.3)
Ordinary shareholders - (564.1) (0.3)
Cash flows from investing activities (2,008.1) (1,781.9) (2350.2)
Capital expenditure - additions (1,967.3) (1,746.3) (2,345.2)
Capital expenditure - proceeds on
disposal 2.5 3.0 0.2
Royalty termination - (1,998.9) -
Purchase of investments (89.1) (297.3) 3.5
Proceeds on the disposal of
investments 52.7 2,266.3 -
Environmental and post-retirement
health care payments (6.9) (8.7) (8.7)
Cash flows from financing activities (631.2) 644.0 (331.4)
Loans received 3,800.0 3,369.4 832.5
Loans repaid (4,455.9) (2,738.6) (1173.1)
Shares issued 24.7 13.2 9.2
Net cash outflow (534.2) (439.0) (894.8)
Translation adjustment 84.6 (87.1) 130.3
Cash at beginning of period 2,277.8 2,803.9 1,818.1
Cash at end of period 1,828.2 2,277.8 1,053.6
Six months to
December December
SOUTH AFRICAN RAND
2009 2008
Cash flows from operating activities 3,368.1 1,755.4
Profit before tax and exceptional items 3,077.1 1,232.2
Exceptional items 1,098.8 109.4
Amortisation and depreciation 2,329.8 1,934.3
Change in working capital (1,455.8) (846.2)
Taxation paid (828.0) (1,045.1)
Other non-cash items (853.8) 370.8
Dividends paid (564.1) (784.8)
Ordinary shareholders (564.1) (784.8)
Cash flows from investing activities (3,790.0) (4,258.1)
Capital expenditure - additions (3,713.6) (4,158.0)
Capital expenditure - proceeds on disposal 5.5 2.4
Royalty termination (1,998.9) -
Purchase of investments (386.4) (83.3)
Proceeds on the disposal of investments 2,319.0 -
Environmental and post-retirement health care
payments (15.6) (19.2)
Cash flows from financing activities 12.8 2,266.3
Loans received 7,169.4 4,120.4
Loans repaid (7,194.5) (1,866.0)
Shares issued 37.9 11.9
Net cash outflow (973.2) (1,021.2)
Translation adjustment (2.5) 67.5
Cash at beginning of period 2,803.9 2,007.3
Cash at end of period 1,828.2 1,053.6
UNITED STATES DOLLARS Quarter
December September December
2009 2009 2008
Cash flows from operating activities 279.2 165.3 186.1
Profit before tax and exceptional items 262.3 140.0 112.8
Exceptional items 58.3 85.3 (2.3)
Amortisation and depreciation 154.4 150.1 103.8
Change in working capital (125.5) (64.8) (21.9)
Taxation paid (17.8) (86.2) (18.8)
Other non-cash items (52.5) (59.1) 12.5
Dividends paid - (72.6) -
Ordinary shareholders - (72.6) -
Cash flows from investing activities (267.9) (219.0) (238.5)
Capital expenditure - additions (262.1) (223.3) (239.4)
Capital expenditure - proceeds on
disposal 0.3 0.4 -
Royalty termination - (257.1) -
Purchase of investments (12.4) (37.2) 1.7
Proceeds on the disposal of investments 7.1 299.4 -
Environmental and post-retirement
health care payments (0.8) (1.2) (0.8)
Cash flows from financing activities (83.2) 68.2 (39.2)
Loans received 509.1 433.0 82.7
Loans repaid (595.6) (366.5) (123.0)
Shares issued 3.3 1.7 1.1
Net cash outflow (71.9) (58.1) (91.6)
Translation adjustment 1.8 19.3 (28.4)
Cash at beginning of period 309.1 347.9 229.3
Cash at end of period 239.0 309.1 109.3
UNITED STATES DOLLARS Six months to
December December
2009 2008
Cash flows from operating activities 444.5 185.4
Profit before tax and exceptional items 402.3 140.3
Exceptional items 143.6 12.5
Amortisation and depreciation 304.5 220.3
Change in working capital (190.3) (96.4)
Taxation paid (104.0) (133.5)
Other non-cash items (111.6) 42.2
Dividends paid (72.6) (101.9)
Ordinary shareholders (72.6) (101.9)
Cash flows from investing activities (486.9) (485.0)
Capital expenditure - additions (485.4) (473.6)
Capital expenditure - proceeds on disposal 0.7 0.3
Royalty termination (257.1) -
Purchase of investments (49.6) (9.5)
Proceeds on the disposal of investments 306.5 -
Environmental and post-retirement health care payments (2.0) (2.2)
Cash flows from financing activities (15.0) 296.4
Loans received 942.1 507.5
Loans repaid (962.1) (212.5)
Shares issued 5.0 1.4
Net cash outflow (130.0) (105.1)
Translation adjustment 21.1 (36.5)
Cash at beginning of period 347.9 250.9
Cash at end of period 239.0 109.3
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 outstanding at
31 December 2009 are described below.
South Africa forward cover contracts*
South African rand forward cover contracts were taken out to cover commitments
of the South African operations in various currencies.
Outstanding at the end of December 2009 were the following contracts:
US$/ZAR - US$20 million with a positive marked to market value of US$0.3
million; and
SEK**/ZAR - SEK3 million with a negative marked to market value of US$0.1
million.
Diesel financial instruments*
Ghana
The West African operations had 18 million litres of Asian style ICE Gasoil
call options remaining at the end of December with a strike price of US$0.90
per litre, which equates to a Brent crude price of US$92 per barrel, with
final
expiry on 28 February 2010. The marked to market value of the above call
options purchased was negligible at the end of December 2009.
Australia
The Australian operations had 8 million litres of Asian style Singapore 0.5
Gasoil call options remaining at the end of December with a strike price of
US$0.9128 per litre, with a final expiry on 28 February 2010. The marked to
market value for the above call options was negligible at the end of December
2009.
Copper financial instruments*
Peru
During June 2009, 8,705 tons or approximately 50 per cent of Cerro Corona`s
expected copper production for financial 2010 was sold forward for monthly
deliveries, starting on 24 June 2009 to 23 June 2010. The average forward
price
for the monthly deliveries is US$5,001 per ton. An additional 8,705 tons of
Cerro Corona`s expected copper production for financial 2010 was hedged by
means of a zero cost collar, guaranteeing a minimum price of US$4,600 per ton
with full participation up to a maximum price of US$5,400 per ton.
The marked to market value of the remaining 4,290 tons sold forward and
the remaining 4,290 tons under the zero cost collar outstanding at the
end of December 2009 was negative by US$16 million.
* Do not qualify for hedge accounting and will be accounted for as derivative
financial instruments in the income statement.
** Swedish Krona
Operating and financial results
SOUTH AFRICAN RAND South Africa Region
Total Mine
Operations Total Driefontein
Operating Results
Ore milled/treated (000 tons)
December 2009 14,017 3,833 1,548
September 2009 13,559 3,771 1,540
Financial year to date 27,576 7,604 3,088
Yield (grams per ton)
December 2009 2.2 4.2 3.8
September 2009 2.3 4.3 3.8
Financial year to date 2.2 4.3 3.8
Gold produced (kilograms)
December 2009 30,529 16,257 5,825
September 2009 30,732 16,386 5,893
Financial year to date 61,261 32,643 11,718
Gold sold (kilograms)
December 2009 30,576 16,257 5,825
September 2009 30,750 16,386 5,893
Financial year to date 61,326 32,643 11,718
Gold price received
(Rand per kilogram)
December 2009 263,828 263,400 262,747
September 2009 241,164 240,467 240,472
Financial year to date 252,464 251,889 251,545
Total cash cost
(Rand per kilogram)
December 2009 147,648 165,707 154,678
September 2009 147,343 162,553 154,387
Financial year to date 147,495 164,124 154,531
Notional cash expenditure
(Rand per kilogram)
December 2009 216,830 242,050 208,103
September 2009 207,754 233,034 207,416
Financial year to date 212,277 237,524 207,757
Operating costs (Rand per ton)
December 2009 333 730 606
September 2009 343 734 617
Financial year to date 338 732 611
Financial Results (Rand million)
Revenue
December 2009 8,066.9 4,282.1 1,530.5
September 2009 7,415.8 3,940.3 1,417.1
Financial year to date 15,482.7 8,222.4 2,947.6
Operating costs, net
December 2009 4,589.0 2,798.2 938.2
September 2009 4,628.6 2,768.4 950.1
Financial year to date 9,217.6 5,566.6 1,888.3
- Operating costs
December 2009 4,665.4 2,798.2 938.2
September 2009 4,644.1 2,768.4 950.1
Financial year to date 9,309.5 5,566.6 1,888.3
- Gold inventory change
December 2009 (76.4) - -
September 2009 (15.5) - -
Financial year to date (91.9) - -
Operating profit
December 2009 3,477.9 1,483.9 592.3
September 2009 2,787.2 1,171.9 467.0
Financial year to date 6,265.1 2,655.8 1,059.3
Amortisation of mining assets
December 2009 1,120.2 612.7 147.1
September 2009 1,138.7 606.4 145.5
Financial year to date 2,258.9 1,219.1 292.6
Net operating profit
December 2009 2,357.7 871.2 445.2
September 2009 1,648.5 565.5 321.5
Financial year to date 4,006.2 1,436.7 766.7
Other (expenses)/income
December 2009 (235.0) (100.7) (26.9)
September 2009 (298.1) (77.3) (22.9)
Financial year to date (533.1) (178.0) (49.8)
Profit/(loss) before taxation
December 2009 2,122.7 770.5 418.3
September 2009 1,350.4 488.2 298.6
Financial year to date 3,473.1 1,258.7 716.9
Mining and income taxation
December 2009 758.3 252.6 146.1
September 2009 500.9 164.4 95.9
Financial year to date 1,259.2 417.1 242.0
- Normal taxation
December 2009 343.5 118.7 100.8
September 2009 174.7 40.6 35.6
Financial year to date 518.2 159.3 136.4
- Royalties
December 2009 107.5 - -
September 2009 97.5 - -
Financial year to date 205.0 - -
- Deferred taxation
December 2009 307.3 133.9 45.3
September 2009 228.7 123.8 60.3
Financial year to date 536.0 257.7 105.6
Profit/(loss) before
exceptional items
December 2009 1,364.4 517.9 272.2
September 2009 849.5 323.8 202.7
Financial year to date 2,213.9 841.7 474.9
Exceptional items
December 2009 3.5 3.4 1.0
September 2009 (3.2) (3.3) 0.8
Financial year to date 0.3 0.1 1.8
Net profit/(loss)
December 2009 1,367.9 521.3 273.2
September 2009 846.3 320.5 203.5
Financial year to date 2,214.2 841.8 476.7
Net profit/(loss) excluding
gains and losses on
foreign exchange, financial
instruments and exceptional items
December 2009 1,398.4 519.2 272.6
September 2009 946.9 322.5 203.0
Financial year to date 2,345.3 841.7 475.6
Capital expenditure
December 2009 1,954.2 1,136.8 274.0
September 2009 1,740.6 1,050.1 272.2
Financial year to date 3,694.8 2,186.9 546.2
Kloof Beatrix South Deep
Operating Results
Ore milled/treated (000 tons)
December 2009 1,073 817 395
September 2009 1,041 791 399
Financial year to date 2,114 1,608 794
Yield (grams per ton)
December 2009 4.6 4.1 5.6
September 2009 4.8 4.3 5.1
Financial year to date 4.7 4.2 5.4
Gold produced (kilograms)
December 2009 4,887 3,318 2,227
September 2009 5,024 3,437 2,032
Financial year to date 9,911 6,755 4,259
Gold sold (kilograms)
December 2009 4,887 3,318 2,227
September 2009 5,024 3,437 2,032
Financial year to date 9,911 6,755 4,259
Gold price received
(Rand per kilogram)
December 2009 262,983 264,527 264,347
September 2009 240,605 240,413 240,207
Financial year to date 251,640 252,258 252,829
Total cash cost
(Rand per kilogram)
December 2009 169,306 167,722 183,655
September 2009 162,818 165,900 179,921
Financial year to date 166,018 166,795 181,874
Notional cash expenditure
(Rand per kilogram)
December 2009 233,804 220,766 380,647
September 2009 217,456 215,595 375,344
Financial year to date 225,517 218,135 378,117
Operating costs (Rand per ton)
December 2009 804 705 1,066
September 2009 815 748 949
Financial year to date 809 726 1,007
Financial Results (Rand million)
Revenue
December 2009 1,285.2 877.7 588.7
September 2009 1,208.8 826.3 488.1
Financial year to date 2,494.0 1,704.0 1,076.8
Operating costs, net
December 2009 862.7 576.1 421.2
September 2009 848.2 591.4 378.7
Financial year to date 1,710.9 1,167.5 799.9
- Operating costs
December 2009 862.7 576.1 421.2
September 2009 848.2 591.4 378.7
Financial year to date 1,710.9 1,167.5 799.0
- Gold inventory change
December 2009 - - -
September 2009 - - -
Financial year to date - - -
Operating profit
December 2009 422.5 301.6 167.5
September 2009 360.6 234.9 109.4
Financial year to date 783.1 536.5 276.9
Amortisation of mining assets
December 2009 208.1 143.0 114.5
September 2009 215.7 143.5 101.7
Financial year to date 423.8 286.5 216.2
Net operating profit
December 2009 214.4 158.6 53.0
September 2009 144.9 91.4 7.7
Financial year to date 359.3 250.0 60.7
Other (expenses)/income
December 2009 (21.5) (12.6) (39.7)
September 2009 (16.3) (9.0) (29.1)
Financial year to date (37.8) (21.6) (68.8)
Profit/(loss) before taxation
December 2009 192.9 146.0 13.3
September 2009 128.6 82.4 (21.4)
Financial year to date 321.5 228.4 (8.1)
Mining and income taxation
December 2009 45.7 55.5 5.3
September 2009 41.3 35.8 (8.6)
Financial year to date 87.0 91.3 (3.3)
- Normal taxation
December 2009 17.6 0.3 -
September 2009 4.1 0.9 -
Financial year to date 21.7 1.2 -
- Royalties
December 2009 - - -
September 2009 - - -
Financial year to date - - -
- Deferred taxation
December 2009 28.1 55.2 5.3
September 2009 37.2 34.9 (8.6)
Financial year to date 65.3 90.1 (3.3)
Profit/(loss) before
exceptional items
December 2009 147.2 90.5 8.0
September 2009 87.3 46.6 (12.8)
Financial year to date 234.5 137.1 (4.8)
Exceptional items
December 2009 2.4 - -
September 2009 (0.5) (3.6) -
Financial year to date 1.9 (3.6) -
Net profit/(loss)
December 2009 149.6 90.5 8.0
September 2009 86.8 43.0 (12.8)
Financial year to date 236.4 133.5 (4.8)
Net profit/(loss) excluding
gains and losses on foreign
exchange, financial instruments
and exceptional items
December 2009 148.1 90.5 8.0
September 2009 87.1 45.2 (12.8)
Financial year to date 235.2 135.7 (4.8)
Capital expenditure
December 2009 279.9 156.4 426.5
September 2009 244.3 149.6 384.0
Financial year to date 524.2 306.0 810.5
Operating and financial results
South
SOUTH AFRICAN RAND West Africa Region America
Region
Ghana Peru
Cerro
Total Tarkwa Damang Corona
Operating Results
Ore milled/treated (000 tons)
December 2009 6,574 5,452 1,122 1,564
September 2009 6,357 5,130 1,227 1,538
Financial year to date 12,931 10,582 2,349 3,102
Yield (grams per ton)
December 2009 1.0 1.0 1.3 2.0
September 2009 1.1 1.1 1.3 1.8
Financial year to date 1.1 1.0 1.3 1.9
Gold produced (kilograms)
December 2009 6,773 5,369 1,404 3,062
September 2009 7,046 5,446 1,600 2,752
Financial year to date 13,819 10,815 3,004 5,814
Gold sold (kilograms)
December 2009 6,773 5,369 1,404 3,109
September 2009 7,046 5,446 1,600 2,770
Financial year to date 13,819 10,815 3,004 5,879
Gold price received
(Rand per kilogram)
December 2009 265,303 266,288 261,538 262,432
September 2009 242,308 242,472 241,750 242,816
Financial year to date 253,578 254,295 250,999 253,189
Total cash cost
(Rand per kilogram)
December 2009 126,369 118,719 155,627 90,897
September 2009 128,867 120,804 156,313 87,798
Financial year to date 127,643 119,769 155,992 89,437
Notional cash expenditure
(Rand per kilogram)
December 2009 178,459 175,321 190,456 148,530
September 2009 170,466 173,467 160,250 150,618
Financial year to date 174,383 174,387 174,368 149,518
Operating costs (Rand per ton)
December 2009 135 122 195 174
September 2009 145 134 187 155
Financial year to date 140 128 191 165
Financial Results (Rand million)
Revenue
December 2009 1,796.9 1,429.7 367.2 815.9
September 2009 1,707.3 1,320.5 386.8 672.6
Financial year to date 3,504.2 2,750.2 754.0 1,488.5
Operating costs, net
December 2009 824.0 611.9 212.1 276.7
September 2009 902.7 657.2 245.5 241.4
Financial year to date 1,726.7 1,269.1 457.6 518.1
- Operating costs
December 2009 885.9 667.2 218.7 271.8
September 2009 919.3 689.8 229.5 238.8
Financial year to date 1,805.2 1,357.0 448.2 510.6
- Gold inventory change
December 2009 (61.9) (55.3) (6.6) 4.9
September 2009 (16.6) (32.6) 16.0 2.6
Financial year to date (78.5) (87.9) 9.4 7.5
Operating profit
December 2009 972.9 817.8 155.1 539.2
September 2009 804.6 663.3 141.3 431.2
Financial year to date 1,777.5 1,481.1 296.4 970.4
Amortisation of mining assets
December 2009 228.5 198.6 29.9 98.2
September 2009 216.4 186.8 29.6 108.7
Financial year to date 444.9 385.4 59.5 206.9
Net operating profit
December 2009 744.4 619.2 125.2 441.0
September 2009 588.2 476.5 111.7 322.5
Financial year to date 1,332.6 1,095.7 236.9 763.5
Other (expenses)/income
December 2009 (21.8) (14.1) (7.7) (104.4)
September 2009 (20.9) (16.1) (4.8) (194.7)
Financial year to date (42.7) (30.2) (12.5) (299.1)
Profit/(loss) before taxation
December 2009 722.6 605.1 117.5 336.6
September 2009 567.3 460.4 106.9 127.8
Financial year to date 1,289.9 1,065.5 224.4 464.4
Mining and income taxation
December 2009 247.1 204.4 42.7 147.5
September 2009 197.6 158.0 39.6 69.5
Financial year to date 444.7 362.4 82.3 217.0
- Normal taxation
December 2009 102.8 74.7 28.1 122.0
September 2009 53.5 21.0 32.5 80.6
Financial year to date 156.3 95.7 60.6 202.6
- Royalties
December 2009 53.9 42.9 11.0 24.3
September 2009 51.2 39.6 11.6 19.3
Financial year to date 105.1 82.5 22.6 43.6
- Deferred taxation
December 2009 90.4 86.8 3.6 1.2
September 2009 92.9 97.4 (4.5) (30.4)
Financial year to date 183.3 184.2 (0.9) (29.2)
Profit/(loss) before
exceptional items
December 2009 475.5 400.7 74.8 189.1
September 2009 369.7 302.4 67.3 58.3
Financial year to date 845.2 703.1 142.1 247.4
Exceptional items
December 2009 - - - 0.1
September 2009 - - - 0.1
Financial year to date - - - 0.2
Net profit/(loss)
December 2009 475.5 400.7 74.8 189.2
September 2009 369.7 302.4 67.3 58.4
Financial year to date 845.2 703.1 142.1 247.6
Net profit/(loss) excluding
gains and losses on foreign
exchange, financial
instruments and exceptional
items
December 2009 476.8 401.9 74.9 224.0
September 2009 370.8 303.5 67.3 156.6
Financial year to date 847.6 705.4 142.2 380.6
Capital expenditure
December 2009 322.8 274.1 48.7 183.0
September 2009 281.8 254.9 26.9 175.7
Financial year to date 604.6 529.0 75.6 358.7
Australasia Region #
SOUTH AFRICAN RAND
Australia
Total St Ives Agnew
Operating Results
Ore milled/treated (000 tons)
December 2009 2,046 1,796 250
September 2009 1,893 1,658 235
Financial year to date 3,939 3,454 485
Yield (grams per ton)
December 2009 2.2 1.7 5.8
September 2009 2.4 1.9 6.1
Financial year to date 2.3 1.8 5.9
Gold produced (kilograms)
December 2009 4,437 2,982 1,455
September 2009 4,548 3,119 1,429
Financial year to date 8,895 6,101 2,884
Gold sold (kilograms)
December 2009 4,437 2,982 1,455
September 2009 4,548 3,119 1,429
Financial year to date 8,985 6,101 2,884
Gold price received
(Rand per kilogram)
December 2009 264,142 263,380 265,704
September 2009 240,897 242,001 238,488
Financial year to date 252,376 252,450 252,219
Total cash cost
(Rand per kilogram)
December 2009 153,730 174,413 111,340
September 2009 157,432 175,409 118,195
Financial year to date 155,604 174,922 114,736
Notional cash expenditure
(Rand per kilogram)
December 2009 230,133 251,140 187,079
September 2009 209,015 226,515 170,819
Financial year to date 219,444 238,551 179,022
Operating costs (Rand per ton)
December 2009 347 299 689
September 2009 379 335 693
Financial year to date 362 316 691
Financial Results (Rand million)
Revenue
December 2009 1,172.0 785.4 386.6
September 2009 1,095.6 754.8 340.8
Financial year to date 2,267.6 1,540.2 727.4
Operating costs, net
December 2009 690.1 532.2 157.9
September 2009 716.1 544.8 171.3
Financial year to date 1,406.2 1,077.0 329.2
- Operating costs
December 2009 709.5 537.2 172.3
September 2009 717.6 554.7 162.9
Financial year to date 1,427.1 1,091.9 335.2
- Gold inventory change
December 2009 (19.4) (5.0) (14.4)
September 2009 (1.5) (9.9) 8.4
Financial year to date (20.9) (14.9) (6.0)
Operating profit
December 2009 481.9 253.2 228.7
September 2009 379.5 210.0 169.5
Financial year to date 861.4 463.2 398.2
Amortisation of mining assets
December 2009 180.8
September 2009 207.2
Financial year to date 388.0
Net operating profit
December 2009 301.1
September 2009 172.3
Financial year to date 473.4
Other (expenses)/income
December 2009 (8.1)
September 2009 (5.2)
Financial year to date (13.3)
Profit/(loss) before taxation
December 2009 293.0
September 2009 167.1
Financial year to date 460.1
Mining and income taxation
December 2009 111.1
September 2009 69.4
Financial year to date 180.5
- Normal taxation
December 2009 -
September 2009 -
Financial year to date -
- Royalties
December 2009 29.3
September 2009 27.0
Financial year to date 56.3
- Deferred taxation
December 2009 81.8
September 2009 42.4
Financial year to date 124.2
Profit/(loss) before
exceptional items
December 2009 181.9
September 2009 97.7
Financial year to date 279.6
Exceptional items
December 2009 -
September 2009 -
Financial year to date -
Net profit/(loss)
December 2009 181.9
September 2009 97.7
Financial year to date 279.6
Net profit/(loss) excluding
gains and losses on foreign
exchange, financial
instruments and exceptional items
December 2009 178.4
September 2009 97.0
Financial year to date 275.4
Capital expenditure
December 2009 311.6 211.7 99.9
September 2009 233.0 151.8 81.2
Financial year to date 544.6 363.5 181.1
# 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.
Operating and financial results
UNITED STATES DOLLARS South Africa Region
Total Mine Total Driefontein
Operations
Operating Results
Ore milled/treated (000 tons)
December 2009 14,017 3.833 1,548
September 2009 13,559 3,771 1,540
Financial year to date 27,576 7,604 3,088
Yield (ounces per ton)
December 2009 0.070 0.136 0.121
September 2009 0.073 0.140 0.123
Financial year to date 0.071 0.138 0.122
Gold produced (000 ounces)
December 2009 982.1 522.7 187.3
September 2009 988.1 526.8 189.5
Financial year to date 1,970.1 1,049.5 376.7
Gold sold (000 ounces)
December 2009 983.6 522.7 187.3
September 2009 988.6 526.8 189.5
Financial year to date 1,972.2 1,049.5 376.7
Gold price received
(dollars per ounce)
December 2009 1,096 1,094 1,091
September 2009 959 956 956
Financial year to date 1,026 1,024 1,023
Total cash cost
(dollars per ounce)
December 2009 613 688 642
September 2009 586 647 614
Financial year to date 600 667 628
Notional cash expenditure
(dollars per ounce)
December 2009 900 1,005 864
September 2009 826 927 825
Financial year to date 863 966 845
Operating costs (dollars per ton)
December 2009 44 97 81
September 2009 44 94 79
Financial year to date 44 96 80
Financial Results ($ million)
Revenue
December 2009 1,075.6 570.9 204.1
September 2009 948.3 503.9 181.2
Financial year to date 2,023.9 1,074.8 385.3
Operating costs, net
December 2009 613.0 373.6 125.3
September 2009 591.9 354.0 121.5
Financial year to date 1,204.9 727.7 246.8
- Operating costs
December 2009 623.0 373.6 125.3
September 2009 593.9 354.0 121.5
Financial year to date 1,216.9 727.7 246.8
- Gold inventory change
December 2009 (10.0) - -
September 2009 (2.0) - -
Financial year to date (12.0) - -
Operating profit
December 2009 462.6 197.3 78.8
September 2009 356.4 149.9 59.7
Financial year to date 819.0 347.2 138.5
Amortisation of mining assets
December 2009 149.7 81.8 19.6
September 2009 145.6 77.5 18.6
Financial year to date 295.3 159.4 38.2
Net operating profit
December 2009 312.9 115.5 59.1
September 2009 210.8 72.3 41.1
Financial year to date 523.7 187.8 100.2
Other (expenses)/income
December 2009 (31.5) (13.4) (3.6)
September 2009 (38.1) (9.9) (2.9)
Financial year to date (69.6) (23.3) (6.5)
Profit/(loss) before taxation
December 2009 281.4 102.1 55.5
September 2009 172.7 62.4 38.2
Financial year to date 454.0 164.5 93.7
Mining and income taxation
December 2009 100.0 33.5 19.4
September 2009 64.1 21.0 12.3
Financial year to date 164.1 54.5 31.6
- Normal taxation
December 2009 45.4 15.6 13.3
September 2009 22.3 5.2 4.6
Financial year to date 67.7 20.8 17.8
- Royalties
December 2009 14.2 - -
September 2009 12.5 - -
Financial year to date 26.6 - -
- Deferred taxation
December 2009 40.5 17.9 6.1
September 2009 29.3 15.8 7.7
Financial year to date 69.7 33.7 13.8
Profit/(loss) before
exceptional items
December 2009 181.3 68.6 36.2
September 2009 108.6 41.4 25.9
Financial year to date 289.9 110.0 62.1
Exceptional items
December 2009 0.4 0.4 0.1
September 2009 (0.4) 0.4 0.1
Financial year to date - - 0.2
Net profit/(loss)
December 2009 181.7 69.1 36.3
September 2009 108.2 41.0 26.0
Financial year to date 290.0 110.0 62.3
Net profit/(loss) excluding
gains and losses on foreign
exchange, financial
instruments and
exceptional items
December 2009 184.7 68.8 36.2
September 2009 121.1 41.2 26.0
Financial year to date 305.8 110.0 62.2
Capital expenditure
December 2009 260.4 151.6 36.6
September 2009 222.6 134.3 34.8
Financial year to date 483.0 285.9 71.4
UNITED STATES DOLLARS South Africa Region
Kloof Beatrix South Deep
Operating Results
Ore milled/treated (000 tons)
December 2009 1,073 817 395
September 2009 1,041 791 399
Financial year to date 2,114 1,608 794
Yield (ounces per ton)
December 2009 0.146 0.131 0.181
September 2009 0.155 0.140 0.164
Financial year to date 0.151 0.135 0.172
Gold produced (000 ounces)
December 2009 157.1 106.7 71.6
September 2009 161.5 110.5 65.3
Financial year to date 318.6 217.2 136.9
Gold sold (000 ounces)
December 2009 157.1 106.7 71.6
September 2009 161.5 110.5 65.3
Financial year to date 318.6 217.2 136.9
Gold price received
(dollars per ounce)
December 2009 1,092 1,098 1,098
September 2009 957 956 955
Financial year to date 1,023 1,026 1,028
Total cash cost
(dollars per ounce)
December 2009 703 696 763
September 2009 648 660 716
Financial year to date 675 678 739
Notional cash expenditure
(dollars per ounce)
December 2009 971 917 1,581
September 2009 865 858 1,493
Financial year to date 917 887 1,537
Operating costs (dollars per ton)
December 2009 107 94 142
September 2009 104 96 121
Financial year to date 106 95 132
Financial Results ($ million)
Revenue
December 2009 171.4 117.1 78.3
September 2009 154.6 105.7 62.4
Financial year to date 326.0 222.7 140.8
Operating costs, net
December 2009 115.2 77.0 56.1
September 2009 108.5 75.6 48.4
Financial year to date 223.6 152.6 104.6
- Operating costs
December 2009 115.2 77.0 56.1
September 2009 108.5 75.6 48.4
Financial year to date 223.6 152.6 104.6
- Gold inventory change
December 2009 - - -
September 2009 - - -
Financial year to date - - -
Operating profit
December 2009 56.3 40.1 22.2
September 2009 46.1 30.0 14.0
Financial year to date 102.4 70.1 36.2
Amortisation of mining assets
December 2009 27.8 19.1 15.3
September 2009 27.6 18.4 13.0
Financial year to date 55.4 37.5 28.3
Net operating profit
December 2009 28.4 21.0 6.9
September 2009 18.5 11.7 1.0
Financial year to date 47.0 32.7 7.9
Other (expenses)/income
December 2009 (2.9) (1.7) (5.3)
September 2009 (2.1) (1.2) (3.7)
Financial year to date (4.9) (2.8) (9.0)
Profit/(loss) before taxation
December 2009 25.6 19.3 1.7
September 2009 16.4 10.5 (2.7)
Financial year to date 42.0 29.9 (1.1)
Mining and income taxation
December 2009 6.1 7.4 0.7
September 2009 5.3 4.6 (1.1)
Financial year to date 11.4 11.9 (0.4)
- Normal taxation
December 2009 2.3 - -
September 2009 0.5 0.1 -
Financial year to date 2.8 0.2 -
- Royalties
December 2009 - - -
September 2009 - - -
Financial year to date - - -
- Deferred taxation
December 2009 3.8 7.3 0.7
September 2009 4.8 4.5 (1.1)
Financial year to date 8.5 11.8 (0.4)
Profit/(loss) before
exceptional items
December 2009 19.5 12.0 1.0
September 2009 11.2 6.0 (1.6)
Financial year to date 30.7 17.9 (0.6)
Exceptional items
December 2009 0.3 - -
September 2009 (0.1) (0.5) -
Financial year to date 0.2 (0.5) -
Net profit/(loss)
December 2009 19.8 12.0 1.0
September 2009 11.1 5.5 (1.6)
Financial year to date 30.9 17.5 (0.6)
Net profit/(loss) excluding
gains and losses on foreign
exchange, financial
instruments and
exceptional items
December 2009 19.6 12.0 1.0
September 2009 11.1 5.8 (1.6)
Financial year to date 30.7 17.7 (0.6)
Capital expenditure
December 2009 37.3 20.9 56.8
September 2009 31.2 19.1 49.1
Financial year to date 68.5 40.0 105.9
Average exchange rates were US$1 = R7.49 and US$1 = R7.82 for the December
2009
and September 2009 quarters respectively. The Australian dollar exchange rates
were A$1 = R6.80 and A$1 = R6.49 for the December 2009 and September 2009
quarters respectively.
Operating and financial results
UNITED STATES DOLLARS West Africa Region South
America
Region
Ghana Peru
Cerro
Total Tarkwa Damang Corona
Operating Results
Ore milled/treated
(000 tons)
December 2009 6,574 5,452 1,122 1,564
September 2009 6,357 5,130 1,227 1,538
Financial year to date 12,931 10,582 2,349 3,102
Yield (ounces per ton)
December 2009 0.033 0.032 0.040 0.063
September 2009 0.036 0.034 0.042 0.058
Financial year to date 0.034 0.033 0.041 0.060
Gold produced(000 ounces)
December 2009 218.1 172.8 45.3 98.4
September 2009 226.5 175.1 51.4 88.5
Financial year to date 444.6 347.9 96.7 186.9
Gold sold (000 ounces)
December 2009 218.1 172.8 45.3 99.9
September 2009 226.5 175.1 51.4 89.1
Financial year to date 444.6 347.9 96.7 189.0
Gold price received
(dollars per ounce)
December 2009 1,102 1,106 1,086 1,090
September 2009 964 964 962 966
Financial year to date 1,031 1,034 1,021 1,029
Total cash cost
(dollars per ounce)
December 2009 524 492 643 378
September 2009 513 480 622 349
Financial year to date 519 487 633 364
Notional cash expenditure
(dollars per ounce)
December 2009 741 728 791 617
September 2009 678 690 637 599
Financial year to date 709 709 709 608
Operating costs
(dollars per ton)
December 2009 18 16 26 23
September 2009 18 17 24 20
Financial year to date 18 17 25 22
Financial Results
($ million)
Revenue
December 2009 239.7 190.6 49.1 108.6
September 2009 218.3 168.9 49.5 86.0
Financial year to date 458.1 359.5 98.6 194.6
Operating costs, net
December 2009 110.3 81.9 28.4 36.9
September 2009 115.4 84.0 31.4 30.9
Financial year to date 225.7 165.9 59.8 67.7
- Operating costs
December 2009 118.4 89.2 29.2 36.2
September 2009 117.6 88.2 29.3 30.5
Financial year to date 236.0 177.4 58.6 66.7
- Gold inventory change
December 2009 (8.1) (7.3) (0.8) 0.6
September 2009 (2.1) (4.2) 2.0 0.3
Financial year to date (10.3) (11.5) 1.2 1.0
Operating profit
December 2009 129.5 108.8 20.7 71.7
September 2009 102.9 84.8 18.1 55.1
Financial year to date 232.4 193.6 38.7 126.8
Amortisation of mining assets
December 2009 30.5 26.5 4.0 13.1
September 2009 27.7 23.9 3.8 13.9
Financial year to date 58.2 50.4 7.8 27.0
Net operating profit
December 2009 99.0 82.3 16.7 58.6
September 2009 75.2 60.9 14.3 41.2
Financial year to date 174.2 143.2 31.0 99.8
Other (expenses)/income
December 2009 (2.9) (1.9) (1.0) (14.2)
September 2009 (2.7) (2.1) (0.6) (24.9)
Financial year to date (5.6) (3.9) (1.6) (39.1)
Profit/(loss) before
taxation
December 2009 96.1 80.4 15.7 44.4
September 2009 72.5 58.9 13.7 16.3
Financial year to date 168.6 139.3 29.3 60.7
Mining and income taxation
December 2009 32.9 27.2 5.7 19.5
September 2009 25.3 20.2 5.1 8.9
Financial year to date 58.1 47.4 10.8 28.4
- Normal taxation
December 2009 13.6 9.8 3.8 16.2
September 2009 6.8 2.7 4.2 10.3
Financial year to date 20.4 12.5 7.9 26.5
- Royalties
December 2009 7.2 5.7 1.5 3.2
September 2009 6.5 5.1 1.5 2.5
Financial year to date 13.7 10.8 3.0 5.7
- Deferred taxation
December 2009 12.1 11.6 0.5 0.1
September 2009 11.9 12.5 (0.6) (3.9)
Financial year to date 24.0 24.1 (0.1) (3.8)
Profit/(loss) before
exceptional items
December 2009 63.2 53.2 10.0 24.9
September 2009 47.3 38.7 8.6 7.5
Financial year to date 110.5 91.9 18.6 32.3
Exceptional items
December 2009 - - - -
September 2009 - - - -
Financial year to date - - - -
Net profit/(loss)
December 2009 63.2 53.2 10.0 24.9
September 2009 47.3 38.7 8.6 7.5
Financial year to date 110.5 91.9 18.6 32.3
Net profit/(loss) excluding
gains and losses on foreign
exchange, financial instruments
and exceptional items
December 2009 63.4 53.4 10.0 29.7
September 2009 47.4 38.8 8.6 20.0
Financial year to date 110.8 92.2 18.6 49.8
Capital expenditure
December 2009 43.0 36.6 6.4 24.4
September 2009 36.0 32.6 3.4 22.5
Financial year to date 79.0 69.2 9.9 46.9
UNITED STATES DOLLARS Australasia Region
Australia #
Total St Ives Agnew
Operating Results
Ore milled/treated
(000 tons)
December 2009 2,046 1,796 250
September 2009 1,893 1,658 235
Financial year to date 3,939 3,454 485
Yield (ounces per ton)
December 2009 0.070 0.053 0.188
September 2009 0.077 0.060 0.196
Financial year to date 0.073 0.057 0.191
Gold produced(000 ounces)
December 2009 142.9 96.0 46.9
September 2009 146.2 100.3 45.9
Financial year to date 289.1 196.3 92.8
Gold sold (000 ounces)
December 2009 142.9 96.0 46.9
September 2009 146.2 100.3 45.9
Financial year to date 289.1 196.3 92.8
Gold price received
(dollars per ounce)
December 2009 1,097 1,094 1,103
September 2009 958 963 949
Financial year to date 1,026 1,026 1,025
Total cash cost
(dollars per ounce)
December 2009 637 724 461
September 2009 626 698 470
Financial year to date 632 711 466
Notional cash expenditure
(dollars per ounce)
December 2009 956 1,043 777
September 2009 831 901 679
Financial year to date 892 970 728
Operating costs
(dollars per ton)
December 2009 46 40 92
September 2009 48 43 89
Financial year to date 47 41 90
Financial Results
($ million)
Revenue
December 2009 156.3 104.8 51.5
September 2009 140.1 96.5 43.6
Financial year to date 296.4 201.3 95.1
Operating costs, net
December 2009 92.2 71.1 21.1
September 2009 91.6 69.7 21.9
Financial year to date 183.8 140.8 43.0
- Operating costs
December 2009 94.8 71.8 23.0
September 2009 91.8 70.9 20.8
Financial year to date 186.5 142.7 43.8
- Gold inventory change
December 2009 (2.5) (0.7) (1.9)
September 2009 (0.2) (1.3) 1.1
Financial year to date (2.7) (1.9) (0.8)
Operating profit
December 2009 64.1 33.7 30.4
September 2009 48.5 26.9 21.7
Financial year to date 112.6 60.5 52.1
Amortisation of mining
assets
December 2009 24.2
September 2009 26.5
Financial year to date 50.7
Net operating profit
December 2009 39.8
September 2009 22.0
Financial year to date 61.9
Other (expenses)/income
December 2009 (1.0)
September 2009 (0.7)
Financial year to date (1.7)
Profit/(loss) before
taxation
December 2009 38.8
September 2009 21.4
Financial year to date 60.2
Mining and income taxation
December 2009 14.2
September 2009 8.9
Financial year to date 23.1
- Normal taxation
December 2009 -
September 2009 -
Financial year to date -
- Royalties
December 2009 3.7
September 2009 3.5
Financial year to date 7.2
- Deferred taxation
December 2009 10.5
September 2009 5.4
Financial year to date 15.9
Profit/(loss) before
exceptional items
December 2009 24.6
September 2009 12.5
Financial year to date 37.1
Exceptional items
December 2009 -
September 2009 -
Financial year to date -
Net profit/(loss)
December 2009 24.6
September 2009 12.5
Financial year to date 37.1
Net profit/(loss) excluding gains
and losses on foreign exchange,
financial instruments and
exceptional items
December 2009 22.8
September 2009 12.4
Financial year to date 35.2
Capital expenditure
December 2009 41.4 28.1 13.3
September 2009 29.8 19.4 10.4
Financial year to date 71.2 47.5 23.7
AUSTRALIAN DOLLARS
Australasia Region #
Total St Ives Agnew
Operating Results
Ore milled/treated
(000 tons)
December 2009 2,046 1,796 250
September 2009 1,893 1,658 235
Financial year to date 3,939 3,454 485
Yield (ounces per ton)
December 2009 0.070 0.053 0.188
September 2009 0.077 0.060 0.196
Financial year to date 0.073 0.057 0.191
Gold produced(000 ounces)
December 2009 142.9 96.0 46.9
September 2009 146.2 100.3 45.9
Financial year to date 289.1 196.3 92.8
Gold sold (000 ounces)
December 2009 142.9 96.0 46.9
September 2009 146.2 100.3 45.9
Financial year to date 289.1 196.3 92.8
Gold price received
(dollars per ounce)
December 2009 1,208 1,205 1,215
September 2009 1,155 1,160 1,143
Financial year to date 1,183 1,182 1,181
Total cash cost
(dollars per ounce)
December 2009 703 798 509
September 2009 754 841 566
Financial year to date 729 819 537
Notional cash expenditure
(dollars per ounce)
December 2009 1,053 1,149 856
September 2009 1,002 1,086 819
Financial year to date 1,028 1,117 839
Operating costs
(dollars per ton)
December 2009 51 44 101
September 2009 58 52 107
Financial year to date 55 48 104
Financial Results
($ million)
Revenue
December 2009 172.7 115.7 57.0
September 2009 168.8 116.3 52.5
Financial year to date 341.5 232.0 109.5
Operating costs, net
December 2009 101.4 78.3 23.2
September 2009 110.3 83.9 26.4
Financial year to date 211.8 162.2 49.6
- Operating costs
December 2009 104.4 79.0 25.4
September 2009 110.6 85.5 25.1
Financial year to date 214.9 164.4 50.5
- Gold inventory change
December 2009 (2.9) (0.7) (2.2)
September 2009 (0.2) (1.5) 1.3
Financial year to date (3.1) (2.2) (0.9)
Operating profit
December 2009 71.3 37.4 33.9
September 2009 58.5 32.4 26.1
Financial year to date 129.7 69.8 60.0
Amortisation of mining
assets
December 2009 26.5
September 2009 31.9
Financial year to date 58.4
Net operating profit
December 2009 44.7
September 2009 26.5
Financial year to date 71.3
Other (expenses)/income
December 2009 (1.2)
September 2009 (0.8)
Financial year to date (2.0)
Profit/(loss) before
taxation
December 2009 43.5
September 2009 25.7
Financial year to date 69.3
Mining and income taxation
December 2009 16.5
September 2009 10.7
Financial year to date 27.2
- Normal taxation
December 2009 -
September 2009 -
Financial year to date -
- Royalties
December 2009 4.3
September 2009 4.2
Financial year to date 8.5
- Deferred taxation
December 2009 12.2
September 2009 6.5
Financial year to date 18.7
Profit/(loss) before
exceptional items
December 2009 27.1
September 2009 15.1
Financial year to date 42.1
Exceptional items
December 2009 -
September 2009 -
Financial year to date -
Net profit/(loss)
December 2009 27.1
September 2009 15.1
Financial year to date 42.1
Net profit/(loss) excluding gains
and losses on foreign exchange,
financial instruments and
exceptional items
December 2009 27.5
September 2009 14.9
Financial year to date 42.4
Capital expenditure
December 2009 46.1 31.4 14.8
September 2009 35.9 23.4 12.5
Financial year to date 82.0 54.7 27.3
# 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.
Total cash cost
Gold Industry Standards Basis
Figures are in South African rand millions unless otherwise stated
South Africa Region
Total Mine
Operations Total Driefontein Kloof
Operating costs (1)
Dec 2009 4,665.4 2,798.2 938.2 862.7
Sep 2009 4,644.1 2,768.4 950.1 848.2
Financial year to date 9,309.5 5,566.6 1,888.3 1,710.9
Gold-in-process and
inventory change*
Dec 2009 (51.1) - - -
Sep 2009 (13.2) - - -
Financial year to date (64.3) - - -
Less:
Rehabilitation costs
Dec 2009 30.5 22.5 9.0 7.0
Sep 2009 29.7 22.3 8.9 6.9
Financial year to date 60.2 44.8 17.9 13.9
Production taxes
Dec 2009 6.6 6.6 0.8 3.3
Sep 2009 7.7 7.7 1.8 3.5
Financial year to date 14.3 14.3 2.6 6.8
General and admin
Dec 2009 176.8 81.8 28.2 28.3
Sep 2009 167.8 82.5 31.4 23.3
Financial year to date 344.6 164.3 59.6 51.6
Cash operating costs
Dec 2009 4,400.4 2,687.3 900.2 824.1
Sep 2009 4,425.7 2,655.9 908.0 814.5
Financial year to date 8,826.1 5,343.2 1,808.2 1,638.6
Plus:
Production taxes
Dec 2009 6.6 6.6 0.8 3.3
Sep 2009 7.7 7.7 1.8 3.5
Financial year to date 14.3 14.3 2.6 6.8
Royalties
Dec 2009 107.5 - - -
Sep 2009 97.4 - - -
Financial year to date 204.9 - - -
TOTAL CASH COST (2)
Dec 2009 4,514.5 2,693.9 901.0 827.4
Sep 2009 4,530.8 2,663.6 909.8 818.0
Financial year to date 9,045.3 5,357.5 1,810.8 1,645.4
Plus:
Amortisation*
Dec 2009 1,094.9 612.7 147.1 208.1
Sep 2009 1,136.4 606.4 145.5 215.7
Financial year to date 2,231.3 1,219.1 292.6 423.8
Rehabilitation
Dec 2009 30.5 22.5 9.0 7.0
Sep 2009 29.7 22.3 8.9 6.9
Financial year to date 60.2 44.8 17.9 13.9
TOTAL PRODUCTION
COST (3)
Dec 2009 5,639.9 3,329.1 1,057.1 1,042.5
Sep 2009 5,696.9 3,292.3 1,064.2 1,040.6
Financial year to date 11,336.8 6,621.4 2,121.3 2,083.1
Gold sold
- thousand ounces
Dec 2009 983.6 522.7 187.3 157.1
Sep 2009 988.6 526.8 189.5 161.5
Financial year to date 1,972.2 1,049.5 376.7 318.6
TOTAL CASH COST
- US$/oz
Dec 2009 613 688 642 703
Sep 2009 586 647 614 648
Financial year to date 600 667 628 675
TOTAL CASH COST
- R/kg
Dec 2009 147,648 165,707 154,678 169,306
Sep 2009 147,343 162,553 154,387 162,818
Financial year to date 147,495 164,124 154,531 166,018
TOTAL PRODUCTION
COST - US$/oz
Dec 2009 766 850 754 886
Sep 2009 737 799 718 824
Financial year to date 751 825 736 855
South Africa Region
South
Beatrix Deep Total
Operating costs (1)
Dec 2009 576.1 421.2 885.9
Sep 2009 591.4 378.7 919.3
Financial year to date 1,167.5 799.9 1,805.2
Gold-in-process and
inventory change*
Dec 2009 - - (31.0)
Sep 2009 - - (10.8)
Financial year to date - - (41.8)
Less:
Rehabilitation costs
Dec 2009 4.1 2.4 2.0
Sep 2009 4.1 2.4 1.6
Financial year to date 8.2 4.8 3.6
Production taxes
Dec 2009 1.2 1.3 -
Sep 2009 1.2 1.2 -
Financial year to date 2.4 2.5 -
General and admin
Dec 2009 15.5 9.8 50.9
Sep 2009 17.1 10.7 50.1
Financial year to date 32.6 20.5 101.0
Cash operating costs
Dec 2009 555.3 407.7 802.0
Sep 2009 569.0 364.4 856.8
Financial year to date 1,124.3 772.1 1,658.8
Plus:
Production taxes
Dec 2009 1.2 1.3 -
Sep 2009 1.2 1.2 -
Financial year to date 2.4 2.5 -
Royalties
Dec 2009 - - 53.9
Sep 2009 - - 51.2
Financial year to date - - 105.1
TOTAL CASH COST (2)
Dec 2009 556.5 409.0 855.9
Sep 2009 570.2 365.6 908.0
Financial year to date 1,126.7 774.6 1,763.9
Plus:
Amortisation*
Dec 2009 143.0 114.5 197.6
Sep 2009 143.5 101.7 210.6
Financial year to date 286.5 216.2 408.2
Rehabilitation
Dec 2009 4.1 2.4 2.0
Sep 2009 4.1 2.4 1.6
Financial year to date 8.2 4.8 3.6
TOTAL PRODUCTION
COST (3)
Dec 2009 703.6 525.9 1,055.5
Sep 2009 717.8 469.7 1,120.2
Financial year to date 1,421.4 995.6 2,175.7
Gold sold
- thousand ounces
Dec 2009 106.7 71.6 218.1
Sep 2009 110.5 65.3 226.5
Financial year to date 217.2 136.9 444.6
TOTAL CASH COST
- US$/oz
Dec 2009 696 763 524
Sep 2009 660 716 513
Financial year to date 678 739 519
TOTAL CASH COST
- R/kg
Dec 2009 167,722 183,655 126,369
Sep 2009 165,900 179,921 128,867
Financial year to date 166,795 181,874 127,643
TOTAL PRODUCTION
COST - US$/oz
Dec 2009 881 981 646
Sep 2009 831 919 632
Financial year to date 856 950 640
West Africa Region South
America
Region
Ghana Peru
Cerro
Tarkwa Damang Corona Total
Operating costs (1)
Dec 2009 667.2 218.7 271.8 709.5
Sep 2009 689.8 229.5 238.8 717.6
Financial year to date 1,357.0 448.2 510.6 1,427.1
Gold-in-process and
inventory change*
Dec 2009 (24.9) (6.1) 3.7 (23.8)
Sep 2009 (26.3) 15.5 2.3 (4.7)
Financial year to date (51.2) 9.4 6.0 (28.5)
Less:
Rehabilitation costs
Dec 2009 1.9 0.1 3.0 3.0
Sep 2009 1.3 0.3 3.1 2.7
Financial year to date 3.2 0.4 6.1 5.7
Production taxes
Dec 2009 - - - -
Sep 2009 - - - -
Financial year to date - - - -
General and admin
Dec 2009 45.9 5.0 14.2 29.9
Sep 2009 43.9 6.2 14.1 21.1
Financial year to date 89.8 11.2 28.3 51.0
Cash operating costs
Dec 2009 594.5 207.5 258.3 652.8
Sep 2009 618.3 238.5 223.9 689.1
Financial year to date 1,212.8 446.0 482.2 1,341.9
Plus:
Production taxes
Dec 2009 - - - -
Sep 2009 - - - -
Financial year to date - - - -
Royalties
Dec 2009 42.9 11.0 24.3 29.3
Sep 2009 39.6 11.6 19.3 26.9
Financial year to date 82.5 22.6 43.6 56.2
TOTAL CASH COST (2)
Dec 2009 637.4 218.5 282.6 682.1
Sep 2009 657.9 250.1 243.2 716.0
Financial year to date 1,295.3 468.6 525.8 1,398.1
Plus:
Amortisation*
Dec 2009 168.2 29.4 99.4 185.2
Sep 2009 180.5 30.1 109.0 210.4
Financial year to date 348.7 59.5 208.4 395.6
Rehabilitation
Dec 2009 1.9 0.1 3.0 3.0
Sep 2009 1.3 0.3 3.1 2.7
Financial year to date 3.2 0.4 6.1 5.7
TOTAL PRODUCTION
COST (3)
Dec 2009 807.5 248.0 385.0 870.3
Sep 2009 839.7 280.5 355.3 929.1
Financial year to date 1,647.2 528.5 740.3 1,799.4
Gold sold
- thousand ounces
Dec 2009 172.8 45.3 99.9 142.9
Sep 2009 175.1 51.4 89.1 146.2
Financial year to date 347.9 96.7 189.0 289.1
TOTAL CASH COST
- US$/oz
Dec 2009 492 643 378 637
Sep 2009 480 622 349 626
Financial year to date 487 633 364 632
TOTAL CASH COST
- R/kg
Dec 2009 118,719 155,627 90,897 153,730
Sep 2009 120,804 156,313 87,798 157,432
Financial year to date 119,769 155,992 89,437 155,604
TOTAL PRODUCTION
COST - US$/oz
Dec 2009 624 730 515 813
Sep 2009 613 697 510 813
Financial year to date 619 714 512 814
Australasia Region
Australia
St Ives Agnew
Operating costs (1)
Dec 2009 537.2 172.3
Sep 2009 554.7 162.9
Financial year to date 1,091.9 335.2
Gold-in-process and
inventory change*
Dec 2009 (13.2) (10.6)
Sep 2009 (9.1) 4.4
Financial year to date (22.3) (6.2)
Less:
Rehabilitation costs
Dec 2009 2.4 0.6
Sep 2009 2.2 0.5
Financial year to date 4.6 1.1
Production taxes
Dec 2009 - -
Sep 2009 - -
Financial year to date - -
General and admin
Dec 2009 21.2 8.7
Sep 2009 14.6 6.5
Financial year to date 35.8 15.2
Cash operating costs
Dec 2009 500.4 152.4
Sep 2009 528.8 160.3
Financial year to date 1,029.2 312.7
Plus:
Production taxes
Dec 2009 - -
Sep 2009 - -
Financial year to date - -
Royalties
Dec 2009 19.7 9.6
Sep 2009 18.3 8.6
Financial year to date 38.0 18.2
TOTAL CASH COST (2)
Dec 2009 520.1 162.0
Sep 2009 547.1 168.9
Financial year to date 1,067.2 330.9
Plus:
Amortisation*
Dec 2009
Sep 2009
Financial year to date
Rehabilitation
Dec 2009
Sep 2009
Financial year to date
TOTAL PRODUCTION
COST (3)
Dec 2009
Sep 2009
Financial year to date
Gold sold
- thousand ounces
Dec 2009 96.0 46.9
Sep 2009 100.3 45.9
Financial year to date 196.3 92.8
TOTAL CASH COST
- US$/oz
Dec 2009 724 461
Sep 2009 698 470
Financial year to date 711 466
TOTAL CASH COST
- R/kg
Dec 2009 174,413 111,340
Sep 2009 175,409 118,195
Financial year to date 174,922 114,736
TOTAL PRODUCTION
COST - US$/oz
Dec 2009
Sep 2009
Financial year to date
DEFINITIONS
Total cash cost and Total production cost 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 cost - Operating costs less off-mine costs, which include
general and administration costs, as detailed in the table above.
(3) Total production cost - Total cash cost 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 were US$1 = R7.49 and US$1 = R7.82 for the December
2009
and September 2009 quarters respectively.
Capital expenditure
Figures are in South African rand millions unless otherwise stated
South Africa Region
Total Mine
Operations Total Driefontein Kloof
Sustaining capital
Dec 2009 1,394.9 680.8 244.5 279.9
Sep 2009 1,226.9 627.5 233.6 244.3
Financial year 2,621.8 1,308.3 478.1 524.2
to date
Project capital
Dec 2009 426.5 426.5 - -
Sep 2009 384.0 384.0 - -
Financial year to date 810.5 810.5 - -
Uranium capital
Dec 2009 29.5 29.5 29.5 -
Sep 2009 38.6 38.6 38.6 -
Financial year to date 68.1 68.1 68.1 -
Brownfields exploration
Dec 2009 103.3 - - -
Sep 2009 91.1 - - -
Financial year to date 194.4 - - -
Total capital expenditure
Dec 2009 1,954.2 1,136.8 274.0 279.9
Sep 2009 1,740.6 1,050.1 272.2 244.3
Financial year to date 3,694.8 2,186.9 546.2 524.2
South Africa Region
South
Beatrix Deep
Sustaining capital
Dec 2009 156.4 -
Sep 2009 149.6 -
Financial year 306.0 -
to date
Project capital
Dec 2009 - 426.5
Sep 2009 - 384.0
Financial year to date - 810.5
Uranium capital
Dec 2009 - -
Sep 2009 - -
Financial year to date - -
Brownfields exploration
Dec 2009 - -
Sep 2009 - -
Financial year to date - -
Total capital expenditure
Dec 2009 156.4 426.5
Sep 2009 149.6 384.0
Financial year to date 306.0 810.5
West Africa Region South
America
Region
Ghana Peru
Cerro
Total Tarkwa Damang Corona
Sustaining capital
Dec 2009 306.8 274.1 32.7 183.0
Sep 2009 271.6 254.9 16.7 175.7
Financial year 578.4 529.0 49.4 358.7
to date
Project capital
Dec 2009 - - - -
Sep 2009 - - - -
Financial year to date - - - -
Uranium capital
Dec 2009 - - - -
Sep 2009 - - - -
Financial year to date - - - -
Brownfields exploration
Dec 2009 16.0 - 16.0 -
Sep 2009 10.2 - 10.2 -
Financial year to date 26.2 - 26.2 -
Total capital expenditure
Dec 2009 322.8 274.1 48.7 183.0
Sep 2009 281.8 254.9 26.9 175.7
Financial year to date 604.6 529.0 75.6 358.7
Australasia Region
Australia
St
Total Ives Agnew
Sustaining capital
Dec 2009 224.3 163.8 60.5
Sep 2009 152.1 108.8 43.3
Financial year 376.4 272.6 103.8
to date
Project capital
Dec 2009 - - -
Sep 2009 - - -
Financial year to date - - -
Uranium capital
Dec 2009 - - -
Sep 2009 - - -
Financial year to date - - -
Brownfields exploration
Dec 2009 87.3 47.9 39.4
Sep 2009 80.9 43.0 37.9
Financial year to date 168.2 90.9 77.3
Total capital expenditure
Dec 2009 311.6 211.7 99.9
Sep 2009 233.0 151.8 81.2
Financial year to date 544.6 363.5 181.1
Notional cash expenditure ##
Figures are in South African rand millions unless otherwise stated
South Africa Region
Total Mine Total Driefontein Kloof
Operations
Operating costs
Dec 2009 4,665.4 2,798.2 938.2 862.7
Sep 2009 4,644.1 2,768.4 950.1 848.2
Financial year to date 9,309.5 5,566.6 1,888.3 1,710.9
Capital expenditure
Dec 2009 1,954.2 1,136.8 274.0 279.9
Sep 2009 1,740.6 1,050.1 272.2 244.3
Financial year
to date 3,694.8 2,186.9 546.2 524.2
Notional cash
expenditure
- R/kg
Dec 2009 216,830 242,050 208,103 233,804
Sep 2009 207,754 233,034 207,416 217,456
Financial year
to date 212,277 237,524 207,757 225,517
Notional cash
expenditure
- US$/oz
Dec 2009 900 1,005 864 971
Sep 2009 826 927 825 865
Financial year
to date 863 966 845 917
South Africa Region
South
Beatrix Deep Total
Operating costs
Dec 2009 576.1 421.2 885.9
Sep 2009 591.4 378.7 919.3
Financial year to date 1,167.5 799.9 1,805.2
Capital expenditure
Dec 2009 156.4 426.5 322.8
Sep 2009 149.6 384.0 281.8
Financial year
to date 306.0 810.5 604.6
Notional cash
expenditure
- R/kg
Dec 2009 220,766 380,647 178,459
Sep 2009 215,595 375,344 170,466
Financial year
to date 218,135 378,117 174,383
Notional cash
expenditure
- US$/oz
Dec 2009 917 1,581 741
Sep 2009 858 1,493 678
Financial year
to date 887 1,537 709
West Africa Region South
America
Region
Ghana Peru
Cerro
Tarkwa Damang Corona
Operating costs
Dec 2009 667.2 218.7 271.8
Sep 2009 689.8 229.5 238.8
Financial year to date 1,357.0 448.2 510.6
Capital expenditure
Dec 2009 274.1 48.7 183.0
Sep 2009 254.9 26.9 175.7
Financial year
to date 529.0 75.6 358.7
Notional cash
expenditure
- R/kg
Dec 2009 175,321 190,456 148,530
Sep 2009 173,467 160,250 150,618
Financial year
to date 174,387 174,368 149,518
Notional cash
expenditure
- US$/oz
Dec 2009 728 791 617
Sep 2009 690 637 599
Financial year
to date 709 709 608
Australasia Region
Australia
Total St Ives Agnew
Operating costs
Dec 2009 709.5 537.2 172.3
Sep 2009 717.6 554.7 162.9
Financial year to date 1,427.1 1,091.9 335.2
Capital expenditure
Dec 2009 311.6 211.7 99.9
Sep 2009 233.0 151.8 81.2
Financial year
to date 544.6 363.5 181.1
Notional cash
expenditure
- R/kg
Dec 2009 230,133 251,140 187,079
Sep 2009 209,015 226,515 170,819
Financial year
to date 219,444 238,551 179,022
Notional cash
expenditure
- US$/oz
Dec 2009 956 1,043 777
Sep 2009 831 901 679
Financial year
to date 892 970 728
## Notional cash expenditure (NCE) per kilogram (ounce) = operating costs plus
capital expenditure divided by gold produced.
Underground and surface
South African rand and metric units
South Africa Region
Total Mine
Operating Results Operations Total Driefontein Kloof
Ore milled /
treated (000 ton)
- underground
December 2009 3,015 2,501 720 612
September 2009 3,086 2,536 708 713
Financial year to date 6,101 5,037 1,428 1,325
- surface
December 2009 11,002 1,332 828 461
September 2009 10,473 1,235 832 328
Financial year to date 21,475 2,567 1,660 789
- total
December 2009 14,017 3,833 1,548 1,073
September 2009 13,559 3,771 1,540 1,041
Financial year to date 27,576 7,604 3,088 2,114
Yield (grams per ton)
- underground
December 2009 6.0 6.1 7.2 7.5
September 2009 5.9 6.0 7.3 6.7
Financial year to date 5.9 6.1 7.2 7.1
- surface
December 2009 1.1 0.7 0.8 0.6
September 2009 1.2 0.9 0.9 0.8
Financial year to date 1.2 0.8 0.8 0.7
- combined
December 2009 2.2 4.2 3.8 4.6
September 2009 2.3 4.3 3.8 4.8
Financial year to date 2.2 4.3 3.8 4.7
Gold produced
(kilograms)
- underground
December 2009 17,981 15,274 5,168 4,598
September 2009 18,215 15,317 5,157 4,749
Financial year to date 36,196 30,591 10,325 9,347
- surface
December 2009 12,548 983 657 289
September 2009 12,517 1,069 736 275
Financial year to date 25,065 2,052 1,393 564
- total
December 2009 30,529 16,257 5,825 4,887
September 2009 30,732 16,386 5,893 5,024
Financial year to date 61,261 32,643 11,718 9,911
Operating costs
(Rand per ton)
- underground
December 2009 1,040 1,084 1,212 1,378
September 2009 1,003 1,059 1,248 1,170
Financial year to date 1,022 1,071 1,230 1,266
- surface
December 2009 139 65 79 43
September 2009 148 68 80 43
Financial year to date 143 66 79 43
- total
December 2009 333 730 606 804
September 2009 343 734 617 815
Financial year to date 338 732 611 809
South Africa Region
South
Operating Results Beatrix Deep# Total
Ore milled /
treated (000 ton)
- underground
December 2009 786 383 -
September 2009 768 347 -
Financial year to date 1,554 730 -
- surface
December 2009 31 12 6,574
September 2009 23 52 6,357
Financial year to date 54 64 12,931
- total
December 2009 817 395 6,574
September 2009 791 399 6,357
Financial year to date 1,608 794 12,931
Yield (grams per ton)
- underground
December 2009 4.2 6.2 -
September 2009 4.4 6.5 -
Financial year to date 4.3 6.3 -
- surface
December 2009 1.0 0.6 1.0
September 2009 1.3 0.6 1.1
Financial year to date 1.1 0.6 1.1
- combined
December 2009 4.1 5.6 1.0
September 2009 4.3 5.1 1.1
Financial year to date 4.2 5.4 1.1
Gold produced
(kilograms)
- underground
December 2009 3,288 2,220 -
September 2009 3,408 2,003 -
Financial year to date 6,696 4,223 -
- surface
December 2009 30 7 6,773
September 2009 29 29 7,046
Financial year to date 59 36 13,819
- total
December 2009 3,318 2,227 6,773
September 2009 3,437 2,032 7,046
Financial year to date 6,755 4,259 13,819
Operating costs
(Rand per ton)
- underground
December 2009 732 1,098 -
September 2009 770 1,083 -
Financial year to date 751 1,091 -
- surface
December 2009 13 58 135
September 2009 13 56 145
Financial year to date 13 56 140
- total
December 2009 705 1,066 135
September 2009 748 949 145
Financial year to date 726 1,007 140
West Africa Region South
America
Region
Ghana Peru
Cerro
Operating Results Tarkwa Damang Corona
Ore milled /
treated (000 ton)
- underground
December 2009 - - -
September 2009 - - -
Financial year to date - - -
- surface
December 2009 5,452 1,122 1,564
September 2009 5,130 1,227 1,538
Financial year to date 10,582 2,349 3,102
- total
December 2009 5,452 1,122 1,564
September 2009 5,130 1,227 1,538
Financial year to date 10,582 2,349 3,102
Yield (grams per ton)
- underground
December 2009 - - -
September 2009 - - -
Financial year to date - - -
- surface
December 2009 1.0 1.3 2.0
September 2009 1.1 1.3 1.8
Financial year to date 1.0 1.3 1.9
- combined
December 2009 1.0 1.3 2.0
September 2009 1.1 1.3 1.8
Financial year to date 1.0 1.3 1.9
Gold produced
(kilograms)
- underground
December 2009 - - -
September 2009 - - -
Financial year to date - - -
- surface
December 2009 5,369 1,404 3,062
September 2009 5,446 1,600 2,752
Financial year to date 10,815 3,004 5,814
- total
December 2009 5,369 1,404 3,062
September 2009 5,446 1,600 2,752
Financial year to date 10,815 3,004 5,814
Operating costs
(Rand per ton)
- underground
December 2009 - - -
September 2009 - - -
Financial year to date - - -
- surface
December 2009 122 195 174
September 2009 134 187 155
Financial year to date 128 191 165
- total
December 2009 122 195 174
September 2009 134 187 155
Financial year to date 128 191 165
Australasia Region
Australia
Operating Results Total St Ives Agnew
Ore milled /
treated (000 ton)
- underground
December 2009 514 367 147
September 2009 550 362 188
Financial year to date 1,604 729 335
- surface
December 2009 1,532 1,429 103
September 2009 1,343 1,296 47
Financial year to date 2,875 2,725 150
- total
December 2009 2,046 1,796 250
September 2009 1,893 1,658 235
Financial year to date 3,939 3,454 485
Yield (grams per ton)
- underground
December 2009 5.3 3.6 9.3
September 2009 5.3 4.2 7.4
Financial year to date 5.3 3.9 8.2
- surface
December 2009 1.1 1.2 0.8
September 2009 1.2 1.2 1.0
Financial year to date 1.2 1.2 0.9
- combined
December 2009 2.2 1.7 5.8
September 2009 2.4 1.9 6.1
Financial year to date 2.3 1.8 5.9
Gold produced
(kilograms)
- underground
December 2009 2,707 1,338 1,369
September 2009 2,898 1,514 1,384
Financial year to date 5,605 2,852 2,753
- surface
December 2009 1,730 1,644 86
September 2009 1,650 1,605 45
Financial year to date 3,380 3,249 131
- total
December 2009 4,437 2,982 1,455
September 2009 4,548 3,119 1,429
Financial year to date 8,985 6,101 2,884
Operating costs
(Rand per ton)
- underground
December 2009 825 714 1,101
September 2009 749 695 852
Financial year to date 785 705 961
- surface
December 2009 186 192 102
September 2009 228 234 57
Financial year to date 206 212 88
- total
December 2009 347 299 689
September 2009 379 335 693
Financial year to date 362 316 691
# December quarter includes 24,000 tons (September quarter 40,000 tons) of
waste processed from underground. In order to show the yield based on ore
mined, the calculation of the yield at South Deep only, excludes the
underground waste.
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 2009 quarter
Reef Carbon Main VCR1
Leader
Advanced (m) 3,806 577 1,462
Advanced on reef (m) 704 37 126
Sampled (m) 603 111 78
Channel width (cm) 72 60 64
Average value - (g/t) 19.5 6.2 14.2
- (cm.g/t) 1,402 369 916
Driefontein September 2009 quarter
Reef Carbon Main2 VCR
Leader
Advanced (m) 3,719 761 1,591
Advanced on reef (m) 794 20 83
Sampled (m) 672 - 78
Channel width (cm) 73 - 101
Average value - (g/t) 22.5 - 14.6
- (cm.g/t) 1, 636 - 1,473
Driefontein Year to date F2010
Reef Carbon Main VCR
Leader
Advanced (m) 7,525 1,338 3,053
Advanced on reef (m) 1,498 57 209
Sampled (m) 1,275 111 156
Channel width (cm) 73 60 83
Average value - (g/t) 21.0 6.2 14.5
- (cm.g/t) 1,525 369 1,195
Kloof December 2009 quarter
Reef Kloof Main VCR
Advanced (m) 191 1,388 4,644
Advanced on reef (m) 20 297 823
Sampled (m) 23 243 660
Channel width (cm) 201 91 129
Average value - (g/t) 17.4 7.6 23.4
- (cm.g/t) 3,503 691 3,032
Kloof September 2009 quarter
Reef Kloof Main VCR
Advanced (m) 214 1,414 4,741
Advanced on reef (m) 53 202 665
Sampled (m) 55 126 532
Channel width (cm) 203 145 130
Average value - (g/t) 14.2 5.8 21.8
- (cm.g/t) 2,883 834 2,840
Kloof Year to date F2010
Reef Kloof Main VCR
Advanced (m) 405 2,802 9,385
Advanced on reef (m) 73 499 1,488
Sampled (m) 78 369 1,192
Channel width (cm) 202 109 130
Average value - (g/t) 15.2 6.8 22.7
- (cm.g/t) 3,066 740 2,946
Beatrix December 2009 quarter
Reef Beatrix Kalkoenkrans
Advanced (m) 5,837 2,042
Advanced on reef (m) 1,192 488
Sampled (m) 936 486
Channel width (cm) 123 82
Average value - (g/t) 9.8 40.4
- (cm.g/t) 1,203 3,296
Beatrix September 2009 quarter
Reef Beatrix Kalkoenkrans
Advanced (m) 5,041 1,973
Advanced on reef (m) 707 410
Sampled (m) 582 414
Channel width (cm) 128 101
Average value - (g/t) 5.4 19.7
- (cm.g/t) 685 1,985
Beatrix Year to date F2010
Reef
Advanced (m) 10,878 4,015
Advanced on reef (m) 1,899 898
Sampled (m) 1,518 900
Channel width (cm) 125 90
Average value - (g/t) 8.0 29.8
- (cm.g/t) 1,005 2,693
South Deep December 2009 quarter
Reef Elsburgs 3,4
Main Advanced (m) 2,606
- Main above 95 level (m) 1,394
- Main below 95 level (m) 1,212
Advanced on reef (m) 1,281
Average value - (g/t) 4.8
South Deep September 2009 quarter
Reef Elsburgs 3,4
Main Advanced (m) 2,715
- Main above 95 level (m) 1,355
- Main below 95 level (m) 1,360
Advanced on reef (m) 1,248
Average value - (g/t) 5.0
South Deep Year to date F2010
Reef Elsburgs 3,4
Main Advanced (m) 5,321
- Main above 95 level (m) 2,749
- Main below 95 level (m) 2,572
Advanced on reef (m) 2,529
Average value - (g/t) 4.9
1) 4 Shaft VCR development traversed a low grade area during the quarter
however, higher values should be intersected going forward.
2) Ore reserve development in the Main reef is done primarily as secondary
prospecting at 8 shaft. During the September quarter no metres were sampled.
3) Trackless development in the Elsburg reefs is evaluated by means of the
resource model.
4) Full channel width not full y exposed in development, hence not reported.
Administration and corporate information
Corporate Secretary
Cain Farrel
Tel: (+27)(11) 562 9742
Fax: (+27)(11) 562 9829
e-mail: cain.farrel@goldfields.co.za
Registered Offices
Johannesburg
Gold Fields Limited
150 Helen Road
Sandown
Sandton
2196
Postnet Suite 252
Private Bag X30500
Houghton 2041
Tel: (+27)(11) 562 9700
Fax: (+27)(11) 562 9829
Secretaries Offices
London
St James`s Corporate Services Limited
6 St James`s Place
London SW 1A 1NP
United Kingdom
Tel: (+44)(20) 7499 3916
Fax: (+44)(20) 7491 1989
American Depository Receipts Transfer
Agent
Bank of New York Mellon
BNY Mellon Shareowner Services
P O Box 358516
Pittsburgh, PA15252-8516
US toll-free telephone: (1)(888) 269 2377
Tel: (+1) 201 680 6825
e-mail: shrrelations@bnymellon.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 Enquiries
Willie Jacobsz
Tel: (+508) 358 0188
Mobile: (+857) 241 7127
e-mail: wjacobsz@gfexpl.com
Nikki Catrakilis-Wagner
Tel: (+27)(11) 562 9706
Mobile: (+27)(0) 83 309 6720
e-mail: nikki.catrakilis-wagner@goldfields.co.za
Media Enquiries
Julian Gwillim
Mobile: (+27)(0) 82 452 4389
e-mail: julian.gwillim@goldfields.co.za
Transfer Secretaries
South Africa
Computershare Investor Services
(Proprietary) Limited
Ground Floor
70 Marshall Street
Johannesburg, 2001
P O Box 61051
Marshalltown, 2107
Tel: (+27)(11) 370 5000
Fax: (+27)(11) 370 5271
Sponsor
South Africa
J.P. Morgan Equities Limited
United Kingdom
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
England
Tel: 0871 664 0300 (calls cost 10p a minute
plus network extras, lines are open
8.3am-5.3pm Mon-Fri) or
(from overseas) +44 208 639 3399
Fax: +44 20 8658 3430
e-mail: ssd@capitaregistrars.com
Website
http://www.goldfields.co.za
Listings
JSE / NYSE / NASDAQ Dubai: GFI
NYX: GFLB
SW X: GOLI
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, Ghana,
Australia, Peru and elsewhere; the ability to achieve anticipated efficiencies
and other cost savings in connection with past and future acquisitions, the
ability to achieve anticipated cost savings at existing operations; the
success
of exploration and development activities; decreases in the market price of
gold or copper; hazards associated with underground and surface gold mining;
work stoppages related to health and safety incidents; labour disruptions; the
ability to manage and maintain access to current and future sources of
liquidity, capital and credit; changes in government regulations, particularly
environmental regulations and new legislation affecting mining and mineral
rights; changes in exchange rates, currency devaluations, inflation and other
macro-economic factors; political and social instability in South Africa,
Ghana, Peru or regionally in Africa or South America. 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 circum
stances after the date of this document or to reflect the occurrence of
unanticipated events.
Directors
A J Wright (Chairman) A R Hill ## R L Pennant-Rea *
N J Holland *
(Chief Executive Officer) J G Hopwood C I von Christierson
PA Schmidt
(Chief Financial Officer) R P Menell G M Wilson
K Ansah # D N Murray
CA Carolus D M J Ncube
R Danino **
* British # Ghanaian ## Canadian
** Peruvian Independent Director
Non-independent
Director
Date: 04/02/2010 08:00:09 Supplied by www.sharenet.co.za
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