Wrap Text
GFI - Gold Fields Limited - Quarter and year ended 31 December 2011
Gold Fields Limited
Incorporated in the Republic of South Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN - ZAE 000018123
Quarter and year ended 31 December 2011
NEWS RELEASE - REVIEWED PRELIMINARY CONDENSED CONSOLIDATED RESULTS
HIGHER GOLD PRICE CONTRIBUTES TO IMPROVED EARNINGS
JOHANNESBURG. 17 February 2012, Gold Fields Limited (NYSE & JSE: GFI) today
announced net earnings for the December quarter of R2,605 million compared
with R2,055 million in the September quarter and a loss of R777 million in the
December 2010 quarter. In US dollar terms net earnings for the December
quarter were US$336 million, compared with US$293 million in the September
quarter and a loss of US$106 million in the December 2010 quarter. Net
earnings of R7,027 million (US$973 million) for the year ended December 2011
compared with R1,139 million (US$153 million) for the year ended December
2010.
December 2011 quarter salient features:
- Group attributable equivalent gold production of 883,000 ounces;
- Total cash cost decreased from US$851 per ounce to US$767 per ounce;
- Operating margin of 56 per cent and NCE margin of 28 per cent reflecting
good cost control and higher prices;
- Project pipeline gaining momentum;
- Fourth place ranking in the resources sector of the Dow Jones sustainability
index.
A final dividend of 230 SA cents per share is payable on 12 March 2012, giving
a total dividend for the year ended December 2011 of 330 SA cents per share.
Statement by Nick Holland, Chief Executive Officer of Gold Fields:
The Group has had a much improved safety performance in the second half of the
year. The Group`s fatal injury frequency rate improved from 0.15 in the
September quarter to 0.02 in the December quarter. Regrettably there was one
fatality in the South Africa region during the quarter. However, it was
pleasing that KDC achieved two million fatality free shifts. Agnew, Damang,
Tarkwa and Cerro Corona reported zero lost time injuries. We continue our
focus and efforts on improving safety and health through engineering out the
risks, ensuring compliance to standards, active stakeholder engagement and
behavioural-based safety programmes.
In the December 2011 quarter Gold Fields benefitted from higher gold prices
and allied with good cost control, realised improved earnings, despite a 2 per
cent decrease in Group attributable gold production to 883,000 ounces.
Earnings for the quarter increased by 27 per cent to R2,605 million (US$336
million) or 361 SA cents per share (US$0.47 per share), when compared with the
previous quarter.
The improvement in net earnings is largely attributable to a 13 per cent
increase in the realised rand gold price, as well as sound cost control
underpinned by the Group-wide Business Process Re-engineering programme. Net
operating costs decreased from R5,404 million (US$766 million) in the
September quarter to R5,359 million (US$656 million) in the December quarter.
Net earnings for the year ended December 2011 increased to R7,027 million
(US$973 million), compared with R1,139 million (US$153 million) in calendar
2010. Over the same period the average gold price increased by 29 per cent in
US dollar terms and 27 per cent in rand terms.
As a result of the higher earnings achieved during the quarter, we are able to
declare a final dividend of 230 SA cents per share, bringing our total
dividend for 2011 to 330 SA cents per share.
Notional cash expenditure (NCE) for the Group increased to R313,286 per
kilogram (US$1,206 per ounce) in the December quarter from R274,615 per
kilogram (US$1,212 per ounce) in the September quarter as a result of higher
capital expenditure and a weaker rand to the dollar partly offset by the lower
operating costs. The higher capital expenditure reflects an increase at South
Deep, in line with schedule, and higher sustaining capital at all operations
to maintain and, in some cases, improve medium to longer term production
profiles.
The NCE margin of 28 per cent remains ahead of our long-term target of 25 per
cent, while the NCE per kilogram in the South Africa region remained flat at
R331,541 per kilogram (US$1,276 per ounce). The NCE margin for the South
Africa region increased to 24 per cent from 16 per cent in the September
quarter, mainly due to the higher rand gold price and sound cost control. For
the South Africa region, excluding the South Deep project which is in a build-
up phase, the NCE margin was 35 per cent in the December quarter compared with
24 per cent in the September quarter.
We continue to make good progress on our growth portfolio. In South America,
the Chucapaca feasibility study is on schedule, with baseline field work for
environmental permitting completed. We are on schedule to complete the
feasibility study during the 2012 and submit the project`s environmental
impact assessment during second half of 2012.
At the Far Southeast project in the Philippines, drilling to confirm and test
the limits of the previously defined mineralisation was completed in October
2011. The new drilling identified significant extensions to mineralisation
beyond original interpretations and on-going drilling programmes will now
scope the full system and complete resource infill drilling of the main zone.
Various bulk mining options are under investigation focusing on an initial
exploration target of 900 million tonnes at 0.77 grams per tonne gold and 0.54
per cent copper.
At the Arctic Platinum project in Finland, pilot scale test-work has
demonstrated that the Platsol process can effectively recover copper, nickel,
gold and PGE metals at an on-site processing facility. The pre-feasibility
study is continuing with a focus on re-engineering the project to fully
optimise the potential capital spend. The study includes a full review of the
process plant design and infrastructure, optimisation of the mining schedules
and definition of additional resources at the Suhanko North prospect which
could provide greater flexibility and a larger ore body.
In West Africa, resource infill drilling for the Damang Super-pit pre-
feasibility study was finalised in October 2011. An updated resource model is
expected to be completed in the second quarter of 2012. Mining and engineering
studies have progressed to schedule with specific focus on plant design
options and location, tailings and waste disposal locations and strategies as
well as water balance management.
The focus for 2012 will continue to be on improved health and safety,
sustained production levels, increased development to create flexibility,
vigorous cost control and further momentum on the growth pipeline.
Stock data
Number of shares in issue
- at end December 2011 723,735,186
- average for the quarter 723,569,224
Free Float 100 per cent
ADR Ratio 1:1
Bloomberg / Reuters GFISJ / GFLJ.J
JSE Limited - (GFI)
Range - Quarter ZAR117.99 - ZAR143.00
Average Volume - Quarter 1,883,768 shares / day
NYSE - (GFI)
Range - Quarter US$14.65 - US$18.30
Average Volume - Quarter 4,131,053 shares / day
SOUTH AFRICAN RAND
Key statistics
Year ended
Dec Dec Dec
2010 2011 2010
Gold produced* 108,802 108,408 27,951
Total cash cost 165,526 184,515 161,894
Notional cash expenditure 239,796 272,224 243,506
Tonnes milled/treated 58,134 59,441 14,498
Revenue 287,150 364,216 303,958
Operating costs 345 359 348
Operating profit 14,469 21,112 4,240
Operating margin 42 50 46
NCE margin 16 25 20
Net earnings/(loss) 1,139 7,027 (777)
161 973 (110)
Headline earnings/(loss) 1,254 7,008 (776)
Net earnings excluding gains 177 970 (110)
and losses on foreign 3,756 7,242 1,475
exchange, financial
instruments, non-recurring
items and share of 530 1,003 206
profit/(loss) of associates
after royalties and taxation
Key statistics
Quarter
Sept Dec
2011 2011
Gold produced* 28,008 27,473 kg
Total cash cost 192,997 199,155 R/kg
Notional cash expenditure 274,615 313,286 R/kg
Tonnes milled/treated 14,770 15,026 000
Revenue 385,684 435,661 R/kg
Operating costs 369 376 R/tonne
Operating profit 5,655 6,908 Rm
Operating margin 51 56 %
NCE margin 29 28 %
Net earnings/(loss) 2,055 2,605 Rm
284 361 SA c.p.s.
Headline earnings/(loss) 2,054 2,582 Rm
Net earnings excluding gains 284 357 SA c.p.s.
and losses on foreign 2,111 2,653 Rm
exchange, financial
instruments, non-recurring
items and share of 291 368 SA c.p.s.
profit/(loss) of associates
after royalties and taxation
UNITED STATES DOLLARS
Key statistics
Quarter
Dec Sept
2011 2011
Gold produced* oz (000) 883 900
Total cash cost $/oz 767 851
Notional cash expenditure $/oz 1,206 1,212
Tonnes milled/treated 000 15,026 14,770
Revenue $/oz 1,677 1,702
Operating costs $/tonne 47 52
Operating profit $m 877 804
Operating margin % 56 51
NCE margin % 28 29
$m 336 293
Net earnings/(loss)
US c.p.s. 47 40
$m 333 293
Headline earnings/(loss)
US c.p.s. 46 40
Net earnings excluding gains
and losses on foreign $m 342 301
exchange, financial
instruments, non-recurring
items and share of US c.p.s. 47 42
profit/(loss) of associates
after royalties and taxation
Year ended
Dec Dec Dec
2010 2011 2010
Gold produced* 898 3,485 3,497
Total cash cost 728 795 703
Notional cash expenditure 1,094 1,173 1,019
Tonnes milled/treated 14,498 59,441 58,134
Revenue 1,366 1,569 1,220
Operating costs 50 50 47
Operating profit 610 2,924 1,983
Operating margin 46 50 42
NCE margin 20 25 16
(106) 973 153
Net earnings/(loss)
(15) 135 21
(106) 971 167
Headline earnings/(loss)
(15) 134 24
Net earnings excluding gains
and losses on foreign 211 1,003 518
exchange, financial
instruments, non-recurring
items and share of 29 139 72
profit/(loss) of associates
after royalties and taxation
* All of the key statistics given above are managed figures, except for gold
produced which is attributable equivalent production.
All operations are wholly owned except for Tarkwa and Damang in Ghana (90.0
per cent) and Cerro Corona in Peru (98.5 per cent).
Gold produced (and sales) throughout this report includes copper gold
equivalents of approximately 5 per cent.
Certain 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 and unplanned maintenance 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.
Safety
The Group`s fatal injury frequency rate improved from 0.15 in the September
quarter to 0.02 in the December quarter. Despite this excellent improvement
one tramming-related fatality occurred at Beatrix in the South Africa region
during the December quarter, with both South Deep and KDC achieving fatality
free quarters.
KDC achieved two million fatality free shifts during the quarter. Agnew,
Damang, Tarkwa and Cerro Corona reported zero lost time injuries (LTI`s). The
lost day injury frequency rate for the Group, however, regressed from 4.95 to
5.04 and the days lost frequency rate regressed from 223 to 229.
Safety and health is the most important value in our Group and we will
continue with a range of initiatives to improve the trends in all key metrics.
Definitions
Lost Day Injury (LDI) takes into account any injury occurring in the workplace
where a person is unable to attend a full shift due to his or her injury at
any time following the injury.
Days Lost takes into account the number of days lost due to injuries recorded.
Financial review
Quarter ended 31 December 2011 compared with quarter
ended 30 September 2011
Revenue
Attributable gold production decreased by 2 per cent from 900,000 ounces in
the September quarter to 883,000 ounces in the December quarter. At the South
African operations, production increased marginally from 428,000 ounces to
434,000 ounces. This increase in production was mainly due to improved mining
volumes at KDC and Beatrix.
Attributable gold production at the West African operations decreased by 6 per
cent from 211,000 ounces to 198,000 ounces, largely due to lower volumes
processed at Tarkwa. Attributable equivalent gold production at Cerro Corona
in Peru, decreased by 14 per cent from 92,000 ounces to 79,000 ounces, largely
due to the lower copper/gold price ratio. At the Australian operations, gold
production increased by 2 per cent from 169,000 ounces to 172,000 ounces due
to improved underground grades mined and processed.
At the South Africa region, gold production at KDC increased by 2 per cent
from 279,200 ounces (8,684 kilograms) in the September quarter to 285,800
ounces (8,890 kilograms) in the December quarter. This increase in production
was mainly due to an increase in underground and surface volumes and
underground yield.
At Beatrix, gold production increased by 6 per cent from 84,700 ounces (2,636
kilograms) to 89,700 ounces (2,789 kilograms) mainly due to an increase in
underground volumes. At South Deep, gold production decreased by 9 per cent
from 64,400 ounces (2,003 kilograms) to 58,500 ounces (1,821 kilograms) mainly
due to a lower underground yield as a result of a change in the mining mix,
principally to provide increased flexibility in the future.
At the West Africa region, managed gold production at Tarkwa decreased by 5
per cent from 180,000 ounces to 170,400 ounces mainly due to a decrease in CIL
throughput. At Damang, gold production decreased by 9 per cent from 54,300
ounces to 49,600 ounces as a result of lower volumes from the high grade
Damang pit cutback as scheduled.
At the South America region, equivalent gold production at Cerro Corona
decreased by 15 per cent from 93,900 equivalent ounces in the September
quarter to 80,000 equivalent ounces in the December quarter mainly due to the
lower copper price relative to the gold price.
At the Australasia region, St Ives` gold production increased by 5 per cent
from 115,000 ounces to 120,400 ounces due to an increase in underground grades
and increased mill throughput. At Agnew, gold production decreased by 3 per
cent from 53,700 ounces to 52,000 ounces due to lower surface yields at
Songvang this quarter.
The average quarterly US dollar gold price achieved decreased marginally from
US$1,702 per ounce in the September quarter to US$1,677 per ounce in the
December quarter. The average Rand/US dollar exchange rate of R8.08 was 15 per
cent weaker than the September quarter average of R7.05. The average
Australian/US dollar exchange rate was 5 per cent weaker at A$1.00 = US$1.01
in the December quarter compared with A$1.00 = US$1.06 in the September
quarter. The average rand gold price increased by 13 per cent from R385,684
per kilogram to R435,661 per kilogram and the average Australian dollar gold
price increased by 2 per cent from A$1,638 per ounce to A$1,665 per ounce.
Revenue increased by 11 per cent from R11,060 million (US$1,570 million) in
the September quarter to R12,267 million (US$1,534 million) in the December
quarter.
Operating costs
Net operating costs decreased marginally from R5,404 million (US$766 million)
in the September quarter to R5,359 million (US$656 million) in the December
quarter. Total cash cost increased from R192,997 per kilogram to R199,155 per
kilogram an increase of 3 per cent but in US dollar terms total cash cost
decreased from US$851 per ounce to US$767 per ounce (10 per cent) due to the
weaker rand. The increase in the total cash cost was mainly due to an increase
in royalties at the South Africa region as a result of the higher rand gold
price. Refer to the total cash cost reconciliation on page 23 for more detail.
At the South Africa region, net operating costs decreased by 4 per cent from
R3,131 million (US$444 million) to R3,012 million (US$367 million). This
decrease was due to strict control over all costs helped by lower electricity
costs in the December quarter as a result of three months of low summer
tariffs compared with two high winter tariff months in the previous quarter.
The net result of the higher production in the South Africa region and
decrease in costs was a decrease in total cash cost of 3 per cent from
R235,780 per kilogram (US$1,040 per ounce) to R229,148 per kilogram (US$882
per ounce).
At the West Africa region, net operating costs increased by 3 per cent from
US$132 million (R931 million) to US$136 million (R1,087 million) mainly due to
higher maintenance costs at Damang. Total cash cost at the West African
operations increased from US$617 per ounce in the September quarter to US$659
per ounce in the December quarter, due to the decrease in production and the
increase in net operating costs.
At Cerro Corona in South America, net operating costs decreased by 15 per cent
from US$41 million (R289 million) to US$35 million (R285 million). This was
mainly due to a decrease in the workers` statutory participation in profits
commensurate with the decrease in profits. Total cash cost decreased from
US$494 per ounce in the September quarter to US$489 per ounce in the December
quarter due to the decrease in net operating costs, despite the decline in
gold equivalent ounces.
At the Australasia region, net operating costs decreased by 18 per cent from
A$142 million (R1,053 million) to A$117 million (R974 million). This was
mainly due to a gold-in-process credit as a result of higher gold-in-process
at the end of the December quarter at St Ives and a stockpile build-up at
Songvang open pit, at Agnew. Total cash cost for the region decreased from
A$844 per ounce (US$891 per ounce) to A$734 per ounce (US$741 per ounce).
Operating margin
The net effect of the increase in revenue and decrease in net operating costs,
was a 22 per cent increase in operating profit from R5,655 million (US$804
million) in the September quarter to R6,908 million (US$877 million) in the
December quarter.
The Group operating margin increased from 51 per cent in the September quarter
to 56 per cent in the December quarter. The operating margin at the South
African operations increased from 40 per cent to 49 per cent. At the West
African operations the operating margin decreased from 67 per cent to 63 per
cent. At Cerro Corona in South America, the operating margin increased from 69
per cent to 73 per cent and at the Australian operations the operating margin
increased from 49 per cent to 60 per cent.
Amortisation
Amortisation increased from R1,377 million (US$195 million) in the September
quarter to R1,761 million (US$222 million) in the December quarter mainly due
to an increase at St Ives. At St Ives, amortisation increased due to an 83 per
cent increase in open pit volumes mined at Formidable, Mars/Minotaur link and
Diana pits, which carry a higher amortisation rate.
Other
Net interest paid decreased from R69 million (US$10 million) in the September
quarter to R61 million (US$8 million) in the December quarter. In the December
quarter interest paid of R128 million (US$16 million) was partly offset by
interest received of R49 million (US$6 million) and interest capitalised of
R18 million (US$2 million). This compares with interest paid of R120 million
(US$17 million) partly offset by interest received of R39 million (US$6
million) and interest capitalised of R12 million (US$1 million) in the
September quarter.
The share of profit of associates after taxation of R27 million (US$4 million)
in the December quarter compares with R5 million (US$1 million) in the
September quarter. These profits related mainly to the Group`s interest in
Rand Refinery.
The gain on foreign exchange of R10 million (US$1 million) in the December
quarter compares with a gain of R72 million (US$10 million) in the September
quarter. These gains relate to the conversion of offshore cash holdings into
their functional currencies and exchange gains and losses on inter-company
loans.
The gain on financial instruments of R1 million (US$nil million) in the
December quarter compares with a loss of R0.3 million (US$0.1 million) in the
September quarter.
Share-based payments of R113 million (US$14 million) were similar to the
September quarter.
Other costs decreased from R74 million (US$11 million) in the September
quarter to R2 million (gain of US$1 million) in the December quarter mainly
due to a re-allocation of certain project and exploration related costs that
were accounted for under other costs during the year, to exploration costs at
year-end.
Exploration
Exploration expenditure increased from R189 million (US$27 million) in the
September quarter to R292 million (US$37 million) in the December quarter
mainly due to project timing and exchange rate differences. Refer to the
Growth section on pages 10 and 11 of this report for more detail on
exploration activities.
Feasibility and evaluation costs
Feasibility and evaluation costs at the Far Southeast (FSE) project in the
Philippines decreased from R48 million (US$7 million) in the September quarter
to R33 million (US$4 million) in the December quarter due to timing of
expenditure.
Non-recurring items
Non-recurring costs of R133 million (US$16 million) in the December quarter
included restructuring costs of R144 million (US$18 million) (which comprised
voluntary separation packages and business process re-engineering costs),
impairment cost of R71 million (US$10 million) and other sundry costs of R11
million (US$1 million). This impairment was due mainly to the decision to
reassess the optimal processing methodology for the oxides at Cerro Corona.
The current focus is on the evaluation of a heap leach operation to capture
the value inherent in the oxide ore stockpiles instead of a stand-alone oxide
plant. These costs were partly offset by a R93 million (US$13 million) profit
on the sale of Conquest Mining Limited and Gold One International Limited. In
the September quarter non-recurring costs of R167 million (US$24 million)
included voluntary separation packages, business process re-engineering and
restructuring costs at all the operations.
Royalties
Government royalties increased from R305 million (US$43 million) in the
September quarter to R376 million (US$48 million) in the December quarter. The
higher royalty in the December quarter was mainly due to the increased revenue
on which royalties are calculated.
Taxation
Taxation for the December quarter amounted to R1,466 million (US$187 million)
compared with R1,223 million (US$174 million) in the September quarter, which
is in line with the higher taxable income. Normal taxation increased from R841
million (US$120 million) to R1,190 million (US$154 million). Deferred taxation
decreased from R382 million (US$54 million) in the September quarter to R276
million (US$33 million) in the December quarter.
Earnings
Net earnings attributable to owners of the parent amounted to R2,605 million
(US$336 million) or 361 SA cents per share (US$0.47 per share) in the December
quarter, compared with earnings of R2,055 million (US$293 million) or 284 SA
cents per share (US$0.40 per share) in the September quarter.
Headline earnings, i.e. earnings excluding the after-tax effect of asset
sales, impairments and the sale of investments, amounted to R2,582 million
(US$333 million) or 357 SA cents per share (US$0.46 per share), compared with
earnings of R2,054 million (US$293 million) or 284 SA cents per share (US$0.40
per share) in the September quarter.
Earnings excluding non-recurring items as well as gains and losses on foreign
exchange, financial instruments and gains or losses of associates after
royalties and taxation amounted to R2,653 million (US$342 million) or 368 SA
cents per share (US$0.47 per share), compared with earnings of R2,111 million
(US$301 million) or 291 SA cents per share (US$0.42 per share) reported in the
September quarter.
Cash flow
Cash inflow from operating activities for the December quarter amounted to
R4,953 million (US$615 million), compared with R5,057 million (US$717 million)
in the September quarter. The higher operating profit in the December quarter
was offset by an investment into working capital and higher royalties and
taxation paid.
Dividends of R88 million (US$11 million) were paid to non-controlling interest
holders at Tarkwa in the December quarter. In the September quarter dividends
of R724 million (US$102 million) were paid to owners of the parent and R147
million (US$21 million) to non-controlling interest holders at Tarkwa, Damang
and Cerro Corona.
Capital expenditure increased from R2,607 million (US$370 million) in the
September quarter to R3,242 million (US$410 million) in the December quarter.
At the South Africa region, capital expenditure increased from R1,266 million
in the September quarter to R1,464 million in the December quarter mainly due
to scheduled increased expenditure at South Deep and infrastructure upgrades
at the other operations. Capital expenditure at South Deep amounted to R607
million in the December quarter compared with R492 million in the September
quarter, with the majority of the expenditure on development and equipping of
the mine to achieve its build-up plan. Expenditure on ore reserve development
(ORD) at KDC decreased from R454 million to R441 million and at Beatrix
decreased from R113 million to R99 million quarter on quarter.
At the West Africa region, capital expenditure increased from US$67 million to
US$89 million mainly due to increased pre-stripping and the acquisition of
additional mining equipment.
In South America, at Cerro Corona, capital expenditure increased from US$17
million in the September quarter to US$20 million in the December quarter
mainly due to expenditure on an additional lift of the tailings facility.
At the Australasia region, capital expenditure increased from A$73 million to
A$82 million. At St Ives, capital expenditure increased from A$52 million to
A$63 million with the majority of the increased expenditure on pre-stripping
at the Formidable pit, the Mars/Minotaur link and Diana open pit. At Agnew,
capital expenditure was similar at A$19 million.
Investing activities in the December quarter included a payment of an upfront
non-refundable option fee of US$7 million to Bezant Resources PLC relating to
the Guinaoang deposit, as well as R79 million (US$11 million) for
environmental and post-retirement health care payments as a result of the
annual payments by the South African operations into the environmental trust
funds. The September quarter included the second payment of R535 million
(US$66 million) in terms of the option agreement for the FSE project.
Net cash inflow from financing activities in the December quarter amounted to
R21 million (US$1 million). This compared with a net cash outflow of R1.4
billion (US$185 million) in the September quarter. The repayment of an
offshore facility of R69 million (US$10 million) in the December quarter
compares with a repayment of R1,505 million (US$195 million) in the September
quarter.
Loans received from non-controlling interest holders increased from R64
million (US$9 million) in the September quarter to R73 million (US$9 million)
in the December quarter. These loans relate to funds received from
Buenaventura for their participation in the Chucapaca project. Shares issued
of R17 million (US$2 million) in the December quarter compares with R10
million (US$1 million) in the September quarter.
The net cash inflow of R1.54 billion (US$182 million) in the December quarter
compares with an outflow of R406 million (US$30 million) in the September
quarter. After accounting for a positive translation adjustment of R74 million
(US$14 million) on offshore cash balances, the cash inflow for the December
quarter was R1.61 billion (US$197 million). The cash balance at the end of
December was R6,049 million (US$744 million) compared with R4,435 million
(US$548 million) at the end of September.
Notional cash expenditure (NCE)
Notional cash expenditure is defined as operating costs (including general and
administration) plus capital expenditure, which includes near-mine
exploration. NCE is reported on a per kilogram and per ounce basis - refer to
the detailed table on page 24 of this report.
Revenue less NCE reflects the free cash flow available to pay taxation,
interest, greenfields exploration, pre-feasibility projects and dividends.
The NCE margin is defined as the difference between revenue per ounce and NCE
per ounce expressed as a percentage.
The Group NCE, which includes capitalised project costs, for the December
quarter, amounted to R313,286 per kilogram (US$1,206 per ounce) compared with
R274,615 per kilogram (US$1,212 per ounce) in the September quarter. This
increase was as a result of the higher capital expenditure partly offset by
the lower operating costs. The NCE margin for the Group decreased marginally
from 29 per cent to 28 per cent as a result of the higher NCE.
At the South Africa region, NCE per kilogram increased from R330,023 per
kilogram (US$1,456 per ounce) to R331,541 per kilogram (US$1,276 per ounce)
due to increased capital expenditure. The NCE margin of 24 per cent in the
December quarter compared with 16 per cent in the September quarter. The
higher margin was due to the higher rand gold price, partially offset by the
higher NCE. NCE excluding the funding of South Deep decreased from R296,343
per kilogram (US$1,307 per ounce) in the September quarter to R284,802 per
kilogram (US$1,096 per ounce) in the December quarter. The NCE margin
excluding South Deep was 35 per cent in the December quarter compared with 24
per cent in the September quarter.
At the West Africa region, NCE per ounce increased from US$899 per ounce to
US$1,071 per ounce due to the increased capital expenditure, while the NCE
margin decreased from 47 per cent to 36 per cent as a result of the lower
dollar gold price and increase in NCE.
At the South America region, NCE per ounce increased from US$615 per ounce in
the September quarter to US$719 per ounce in the December quarter due to the
increased capital expenditure together with the decrease in gold equivalent
production. The NCE margin at Cerro Corona remains the highest in the Group
despite the decrease from 58 per cent to 56 per cent.
At the Australasia region, NCE per ounce increased from A$1,238 per ounce
(US$1,307 per ounce) in the September quarter to A$1,270 per ounce (US$1,283
per ounce) in the December quarter due to increased operating costs and
increased capital expenditure. The NCE margin, however, remained at 24 per
cent due to the higher Australian dollar gold price received, offsetting the
increased NCE.
Balance sheet
Net debt (long-term loans plus the current portion of long-term loans less
cash and deposits) increased from R3,974 million (US$589 million) in December
2010 to R9,460 million (US$1,164 million) at the end of December 2011.
The increase in borrowings was largely to fund the buy-out of a portion of the
non-controlling interest holders in Gold Fields La Cima and Ghana during the
year which amounted to approximately R7.1 billion (US$1,049 million), capital
expenditure of R10.2 billion (US$1,413 million), dividend payments of R1.5
billion (US$217 million) and R0.5 billion (US$66 million) on the second
instalment of the FSE project option, together with negative exchange rate
movements of R2.6 billion on the translation of the dollar loans into rand.
These payments were partly offset by cash generated from operating
activities of R15.7 billion (US$2,165 million).
Operational review
Cost and revenue optimisation initiatives through Business
Process Re-engineering (BPR)
BPR commenced during the second half of calendar 2010 and is an on-going
business initiative. BPR involves a review of the mines` operational
production processes and associated cost structures from the stope to the
mill. The objective is to introduce a new business blueprint, together with an
appropriate organisational structure, which supports sustainable gold output
at an NCE margin of 20 per cent in the short to medium term and 25 per cent in
the long term.
South Africa region
The BPR programme underpins the suite of M projects which were established
during financial 2008. The BPR programme effectively consolidates the M suite
of projects into the entire process.
BPR - Stoping full potential (Project 1M)
Project 1M is a productivity initiative with the aim of improving quality
mining volumes by increasing the face advance by between 5 and 10 per cent per
annum. It aims to enable the delivery of full potential at every workface by
introducing standardised reporting and practices, and implementing effective
production management and control systems to enable teams to manage the
business more effectively. The projects focus on addressing advance per blast
to drive quality-volume and remove key constraints which affect productivity
on a shaft by shaft basis, including effective face times, logistics in-flow
and out-flow and mining cycles.
A programme management office was established to steer the project, monitor
progress and develop solutions. The programme consists of 10 key initiatives:
- Safety. Develop new processes and systems to monitor and manage safe
production, as well as interventions focused on changing people behaviour.
- Target area process. Increased focus on management controls of working
places, with improved actions to enable a quality blast.
- Advance per blast. Focus on behaviour, practices and training to improve
quality rock breakage.
- Front-line labour management. Ensure daily labour availability with the
right skills mix.
- Monthly planning. Enhance current protocol by way of improved reports and
standardisation across the operations.
- Panel/face-length availability. Redesign reports, create improved visibility
and implement actions to improve the face-length availability.
- Art of cleaning. Focus on training the front-line workers and first-line
supervision to effectively clean a blasted panel.
- Cost management. Adherence to labour standards-and-norms as well as
effective use of utilities.
- Leadership training. Enhance skills.
- Communication and change. Drive key messages both up and down the
organisation, with a focus on the key objectives and targets of the business.
The programme is on track and crew performance has been stabilised.
BPR - Developing full potential (Project 2M)
The BPR full potential development project was fully implemented at the end of
December 2011 and replaces project 2M, which is a technology initiative aimed
at mechanising all flat-end development (i.e. development on the horizontal
plane) at the long-life shafts of KDC and Beatrix. South Deep is already a
fully mechanised mine. The aim of the project is to improve safety and
productivity, reduce development costs and increase ore reserve flexibility
through higher monthly development advance rates.
Eighty-nine per cent of flat-end development metres advanced at long-life
shafts was achieved by mechanised means. The drill rigs operating on the long
life shafts at Beatrix and KDC achieved an average rate of 40 metres per rig
in the December quarter compared with 35 metres per rig achieved in the
September quarter, both against a target of 38 metres per rig.
BPR - NCE full potential (Project 3M)
The BPR NCE full potential project focuses on all categories of expenditure
and replaces project 3M. BPR has mitigated mining inflation increases,
limiting operating cost increases to an effective 3 per cent for the year
ended December 2011. Savings since this initiative started in mid-2010 amount
to R450 million, of which R97 million was achieved in the December quarter. On
a cumulative basis these savings translate into annualised savings of R840
million since inception (mid-2010).
The second phase of the project has identified further cost reductions of
around R500 million in the South Africa region which is planned to be realised
over the next two years.
These cost saving initiatives include various programmes such as productivity
improvements, continued optimisation of staff structures and complements, a
reduction in non-specialised contractors, enhancing supply chain management
and a reduction in power consumption across the operations.
Project 4M
Project 4M focuses on the Mine Health and Safety Council (MHSC) milestones
agreed at a tripartite health and safety summit on 15 June 2003, comprising
representatives from Government, organised labour and mining companies. The
focus is on achieving set 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.
One of the milestone targets is that no machine or piece of equipment may
generate a sound pressure level in excess of 110dB (A) after December 2013. In
order to achieve this target the company is focusing on reducing the noise at
source.
The number of measurements expressed as a percentage of noise measurements of
machinery and equipment emitting noise in excess of 110dB (A) is currently 0.8
per cent. Most of the sound pressures exceeding 110dB (A) is where two or more
rockdrill machines are drilling in a panel simultaneously. Silencing of
equipment is ongoing and each intervention is project managed.
In order to achieve dust exposure targets, the company continuously refines
interventions, which include:
- Building health rooms at each of the mines` training centres to assist with
the coaching of employees on potential exposures and wearing of protective
instruments.
- The use of foggers to trap dust particles liberated from tipping points. The
foggers are placed in intake airways to prevent dust from entering the main
air stream.
- Footwall treatment to bind dust onto the footwall and prevent it from being
released into the intake airways,
- The analysis of individual filters to assist in determining exposure.
West Africa region
Tarkwa
Continued consolidation of several productivity, cost saving and efficiency
initiatives, has resulted in cost savings of US$20 million for the year ended
December 2011, of which US$6 million was achieved this quarter. Most of the
savings achieved in the December quarter were due to efficiency improvements
to owner mining and owner maintenance.
North heap leach recoveries and mining volumes were the focus areas in the
December quarter. The removal of bottlenecks at the North heap leach has
resulted in a 14 per cent improvement in gold output from heap leach
facilities since the March quarter. This was mainly due to the installation of
three new large tertiary crushers which were commissioned during May 2011, as
well as the installation of additional cascade columns.
Focus for the March 2012 quarter is directed towards commissioning of the
secondary crusher at the CIL plant and improving mining performance, with the
aim of realising additional mined and processed tonnes. Utilisation
improvements will be maintained with increased focus on productivity and
equipment availability and utilisation of the load and haul fleet.
Damang
Focus remained on maximising the benefits realised on the conversion from
contractor to owner operation and owner maintenance. To date, benefits of
US$23 million have been achieved of which US$5 million was realised in the
December quarter.
Further optimisation continued during the December quarter, with the focus on
mining and processing efficiencies. Satisfactory improvements in mining
equipment availabilities have been recorded. Preparations for the
implementation of an additional mining shift to maximise utilisation of
availability of the mining equipment, as well as the introduction of a blast
movement monitoring system to improve the mine call factor, have progressed
well during the quarter.
The focus for the March quarter remains on mining and processing efficiencies,
in particular, on maximising the use of the mining fleet with an additional
mining shift being implemented from January 2012.
Australasia region
St Ives
Following the success of the transition to owner mining underground, St Ives
has established a transition team to implement owner mining at its open pits.
As with the change to owner mining on the underground operations, the change
will provide the opportunity to reduce costs and improve control of the mining
process.
In December 2011 a new heap leach stacker was installed. This will allow the
circuit to be split during maintenance and repair downtime with the overall
utilisation of the heap leach plant expected to increase by approximately 4
per cent.
The Lefroy mill has realised a seven tonne per hour average increase in
throughput for 2011 compared with 2010, equating to an additional A$6 million
in revenue. This can be attributed to reduced tails line pumping distances to
the mined-out North Orchin pit which was used for in-pit tailings for extended
periods, reduced clay-based oxides and management interventions such as Short
Interval Control within the department. Currently a new tailing storage
facility known as "TSF4" is strategically being constructed in close proximity
to Lefroy mill which will further enhance throughput.
A new mine production management system "Micromine Pitram" is to be
implemented in the first half of 2012. The introduction of Micromine Pitram
will allow production data to be generated in a timelier and more detailed
manner, providing the opportunity for more pro-active management of mining and
processing activities.
Agnew
During the December quarter, a project focusing on improving the current paste
fill process was initiated. Previous blockages within the reticulation piping
have caused considerable delays, resulting in significant production losses
over the past two years. A core team consisting of representatives from each
key element of the process, have been meeting regularly since early December,
working closely with key production personnel to define, measure, quantify and
analyse the current process.
The trucking efficiencies project has delivered benefits in terms of
increasing the tonnages carted by each underground truck. Average loads prior
to the implementation of the project were in the range of 47 tonnes. These
have improved by approximately 6 per cent to around 50 tonnes following
changes to the underground loading process. On-going activities are expected
to increase the loads to an average of 55 tonnes over the coming months.
The initiative to improve the short interval control is expected to combine
existing spreadsheets and the underground production data and reporting system
into one consolidated database. This will provide shift bosses and underground
foremen with a consistent interface, establish a stronger relationship between
the outgoing and incoming shift handover activities and improve reporting and
task assignment for crews. Implementation is expected to be completed by mid-
February 2012 following extensive testing, training and familiarisation at the
operational level.
South Africa region
KDC
December September
2011 2011
Gold produced - 000`oz 285.8 279.2
- kg 8,890 8,684
Yield - underground - g/t 6.3 6.2
- combined - g/t 3.1 3.1
Total cash cost - R/kg 218,526 227,395
- US$/oz 841 1,003
Notional cash expenditure - R/kg 289,078 295,164
- US$/oz 1,113 1,302
NCE margin - % 34 24
Gold production increased from 279,200 ounces (8,684 kilograms) in the
September quarter to 285,800 ounces (8,890 kilograms) in the December quarter.
This increase was achieved despite production losses due to safety stoppages
and safety audits (including the National Safety Day on 4 October 2011) and
interventions following seismic-related events and crew moves to control the
grade mined.
Underground tonnes milled increased from 1.22 million tonnes in the September
quarter to 1.23 million tonnes in the December quarter. The yield increased
from 6.2 grams per tonne to 6.3 grams per tonne. Surface tonnes milled
increased from 1.58 million tonnes to 1.61 million tonnes and the surface
yield remained at 0.7 grams per tonne.
Main development increased by 8 per cent from 10,460 metres to 11,253 metres,
while on-reef development increased by 21 per cent from 1,475 metres to 1,786
metres. The average development value decreased from 2,150 centimetre grams
per tonne to 2,084 centimetre grams per tonne.
Operating costs decreased from R1,952 million (US$277 million) to R1,864
million (US$227 million). This decrease was mainly due to decreased
electricity costs with three months of low summer tariffs in the December
quarter compared with two high winter tariff months in the September quarter,
partially offset by higher surface ore transport costs. Total cash cost for
the quarter decreased from R227,395 per kilogram (US$1,003 per ounce) in the
September quarter to R218,526 per kilogram (US$841 per ounce) in the December
quarter.
Operating profit increased from R1,432 million (US$204 million) in the
September quarter to R2,030 million (US$264 million) in the December quarter
due to higher revenue and lower operating costs.
Capital expenditure increased from R611 million (US$87 million) to R706
million (US$89 million) mainly due to expenditure on an additional mobile
processing plant (python) required to expand the surface processing capacity.
Notional cash expenditure decreased from R295,164 per kilogram (US$1,302 per
ounce) in the September quarter to R289,078 per kilogram (US$1,113 per ounce)
in the December quarter as a result of the higher production and lower costs,
partially offset by the higher capital expenditure. The NCE margin increased
from 24 per cent to 34 per cent as a result of the higher rand gold price and
the lower NCE.
The estimate for calendar 2012 is as follows:
- Gold produced - between 1,060,000 ounces and 1,125,000 ounces (between
33,000 kilograms and 35,000 kilograms).
- Total cash cost* at R260,000 per kilogram (US$1,000 per ounce).
- Notional cash expenditure* at R350,000 per kilogram (US$1,360 per ounce).
NCE includes incremental investment in a mobile processing plant and
additional maintenance capital on long-life assets.
* Based on an exchange rate of US$1 = R8.00.
Beatrix
December September
2011 2011
Gold produced - 000`oz 89.7 84.7
- kg 2,789 2,636
Yield - underground - g/t 4.2 4.6
- combined - g/t 3.0 2.9
Total cash cost - R/kg 220,222 236,002
- US$/oz 848 1,041
Notional cash expenditure - R/kg 271,172 300,228
- US$/oz 1,044 1,325
NCE margin -% 38 25
Gold production increased from 84,700 ounces (2,636 kilograms) in the
September quarter to 89,700 ounces (2,789 kilograms) in the December quarter
and was affected by safety-related stoppages and quality issues.
Underground tonnes milled increased from 547,000 tonnes in the September
quarter to 647,000 tonnes in the December quarter due to an increase in
stoping volumes. The underground yield regressed from 4.6 grams per tonne to
4.2 grams per tonne due to a lower mine call factor (MCF). Various initiatives
to improve the MCF, including improved fragmentation management and water
control, are being implemented. A change in explosives during the quarter
resulted in a marked improvement in the fragmentation. Since quarter-end, the
water manifolds at South and West sections were fitted with orifices to
restrict the quantity of water flow. All the hydropower drilling machines at
North section were fitted with connections to capture 60 per cent of the water
whilst drilling. This water is piped out of the reef horizon to improve house-
keeping and to eliminate gold loss due to excessive water. Surface tonnes
milled decreased from 352,000 tonnes to 293,000 tonnes, in line with the
increase in underground tonnes milled. Surface yield regressed from 0.3 grams
per tonne to 0.2 grams per tonne.
Main development increased by 13 per cent from 5,442 metres in the September
quarter to 6,123 metres in the December quarter. The on-reef development
increased by 14 per cent from 1,182 metres to 1,352 metres and the average
main development value increased from 1,109 centimetre grams per tonne in the
September quarter to 1,357 centimetre grams per tonne in the December quarter,
reflecting the value variability of the zones currently being developed.
Operating costs decreased from R628 million (US$89 million) in the September
quarter to R606 million (US$74 million) in the December quarter. This decrease
was mainly due to decreased electricity costs with three months of low summer
tariffs in the December quarter compared with two high winter tariff months in
the September quarter. Total cash cost decreased from R236,002 per kilogram
(US$1,041 per ounce) to R220,222 per kilogram (US$848 per ounce) due to the
increased production and lower costs.
Operating profit increased from R427 million (US$61 million) in the September
quarter to R615 million (US$80 million) in the December quarter due to higher
revenue and lower operating costs.
Capital expenditure decreased from R163 million (US$23 million) to R150
million (US$18 million) with the majority spent on infrastructure upgrades and
ore reserve development.
Notional cash expenditure decreased from R300,228 per kilogram (US$1,325 per
ounce) in the September quarter to R271,172 per kilogram (US$1,044 per ounce)
in the December quarter due to the increased production, lower operating costs
and lower capital expenditure. The NCE margin increased from 25 per cent to 38
per cent due to the higher rand gold price and lower NCE.
The estimate for calendar 2012 is as follows:
- Gold produced - between 350,000 ounces and 370,000 ounces (between 10,900
kilograms and 11,500 kilograms).
- Total cash cost* at R250,000 per kilogram (US$960 per ounce).
- Notional cash expenditure* at R330,000 per kilogram (US$1,280 per ounce).
NCE includes additional capital for a mobile processing plant.
* Based on an exchange rate of US$1 = R8.00.
South Deep project
December September
2011 2011
Gold produced - 000`oz 58.5 64.4
- kg 1,821 2,003
Yield - underground - g/t 4.5 5.0
- combined - g/t 3.3 3.2
Total cash cost - R/kg 294,673 271,842
- US$/oz 1,134 1,199
Notional cash expenditure - R/kg 631,301 520,369
- US$/oz 2,430 2,296
NCE margin -% (44) (32)
The South Deep capital infrastructure programme continues to meet its key
delivery dates to support the build-up to a run-rate of 700,000 ounces per
annum by the end of 2015. The ventilation shaft deepening project remains on
track for commissioning in the September 2012 quarter and the additional rock
hoisting is expected to build to a nameplate capacity of 195,000 tonnes per
month by October 2013. This, together with the existing Main shaft capacity of
175,000 tonnes per month, is expected to deliver the full production to the
mill. The gold plant expansion from 220,000 tonnes per month to 330,000 tonnes
per month is under construction, with commissioning planned in the September
2012 quarter. The project capital development has achieved 105 per cent of
planned metres for the year and capital expenditure is tracking physical
progress and is in line with previous estimates given.
Gold production decreased from 64,400 ounces (2,003 kilograms) in the
September quarter to 58,500 ounces (1,821 kilograms) in the December quarter,
as a result of the lower underground yield. Total tonnes milled, which
included 25,000 tonnes from surface sources and 123,000 tonnes of off-reef
development, decreased from 623,000 tonnes in the September quarter to 549,000
tonnes in the December quarter, due to depletion of surface stockpiles.
Underground reef ore processed during the quarter increased by 2 per cent from
392,000 tonnes to 400,000 tonnes. The underground reef yield decreased from
5.0 grams per tonne in the September quarter to 4.5 grams per tonne in the
December quarter, primarily due to increased infrastructure development. The
infrastructure development, which cuts though the lower grade reefs in the
current mine area, is required for access to additional de- stress mining
projects, as well as to provide excavations to facilitate the movement of ore
to the new mine area in the future.
Development increased from 2,938 metres in the September quarter to 3,175
metres in the December quarter. The new mine capital development in phase 1,
sub 95 level, decreased from 1,160 metres to 1,069 metres. Development in the
current mine areas above 95 level increased from 1,484 metres to 1,838 metres.
Vertical development decreased from 294 metres to 268 metres. Destress mining
increased by 8 per cent from 6,815 square metres in the September quarter to
7,373 square metres in the December quarter.
Operating costs decreased from R550 million (US$78 million) in the September
quarter to R542 million (US$66 million) in the December quarter. This decrease
was mainly due to decreased electricity costs with three months of low summer
tariffs in the December quarter compared with two high winter tariff months in
the September quarter, partially offset by an increase in stores costs for
maintenance of mechanised equipment. Total cash cost increased from R271,842
per kilogram (US$1,199 per ounce) to R294,673 per kilogram (US$1,134 per
ounce) in the December quarter due to the lower production.
Operating profit increased from R240 million (US$34 million) in the September
quarter to R256 million (US$32 million) in the December quarter due to the
higher revenue and lower operating cost.
Capital expenditure increased from R492 million (US$70 million) in the
September quarter to R607 million (US$77 million) in the December quarter, in
line with the project plan. The majority of this capital expenditure was on
development, the ventilation shaft deepening and infrastructure, the
metallurgical plant expansion, trackless equipment and full plant tailings
backfill.
Notional cash expenditure increased from R520,369 per kilogram (US$2,296 per
ounce) in the September quarter to R631,301 per kilogram (US$2,430 per ounce)
in the December quarter as a result of the lower gold production together with
increased capital expenditure.
The estimate for calendar 2012 is as follows:
- Gold produced - between 305,500 kilograms and 328,000 kilograms (between
9,500 kilograms and 10,200 kilograms).
- Total cash cost* at R265,000 per kilogram (US$1,030 per ounce).
- Notional cash expenditure* at R540,000 per kilogram (US$2,090 per ounce).
* Based on an exchange rate of US$1 = R8.00.
West Africa region
Ghana
Tarkwa
December September
2011 2011
Gold produced - 000`oz 170.4 180.0
Yield - heap leach - g/t 0.5 0.6
- CIL plant - g/t 1.4 1.4
- combined - g/t 0.9 1.0
Total cash cost - US$/oz 618 606
Notional cash expenditure - US$/oz 1,022 869
NCE margin - % 39 49
Gold production decreased from 180,000 ounces in the September quarter to
170,400 in the December quarter due to a decrease in CIL throughput as a
result of a harder ore blend and interruptions to power supply.
Total tonnes mined, including capital stripping, increased from 28.8 million
tonnes in the September quarter to 30.1 million tonnes in the December
quarter. Ore mined increased from 5.2 million tonnes in the September quarter
to 5.8 million tonnes in the December quarter. Mined grade at 1.26 grams per
tonne was marginally higher than the 1.24 grams per tonne achieved in the
September quarter. The strip ratio of 4.2 in the December quarter compared
with 4.5 in the September quarter.
The CIL plant throughput decreased from 2.84 million tonnes in the September
quarter to 2.73 million tonnes in the December quarter. This was as a result
of a harder ore blend as well as interruptions to power supply which resulted
in lower mill availability. Yield decreased from 1.43 grams per tonne to 1.36
grams per tonne mainly due to a drawdown of low grade stockpiles. The CIL
plant produced 119,100 ounces for the December quarter compared with the
131,000 ounces achieved in the September quarter.
Total feed to the North and South heap leach sections increased from 2.76
million tonnes to 3.12 million tonnes. Yield decreased from 0.55 grams per
tonne in the September quarter to 0.51 grams per tonne in the December
quarter. The High Pressure Grinding Roller (HPGR) at the South heap leach
section processed 0.99 million tonnes, compared with 0.81 million tonnes in
the September quarter. The North heap leach section processed 2.13 million
tonnes in the December quarter compared with 1.95 million tonnes in the
September quarter. The heap leach process produced 51,300 ounces, compared
with 49,000 ounces in the September quarter. The increase was attributable to
the increased tonnage stacked on both facilities.
Net operating cost decreased from US$102 million (R717 million) in the
September quarter to US$99 million (R793 million) in the December quarter in
line with lower production levels. Total cash cost increased from US$606 per
ounce in the September quarter to US$618 per ounce in the December quarter due
to the lower production.
Operating profit decreased from US$206 million (R1,455 million) to US$185
million (R1,496 million) as a result of lower gold production and the lower
gold price received.
Capital expenditure increased from US$47 million (R332 million) in the
September quarter to US$63 million (R499 million) in the December quarter,
with expenditure on pre-stripping, a secondary crusher for the CIL plant and
additional mining fleet being the major items.
Notional cash expenditure increased from US$869 per ounce to US$1,022 per
ounce due to a decrease in production and increased capital expenditure. The
NCE margin decreased from 49 per cent to 39 per cent due to the lower dollar
gold price and higher NCE.
The estimate for calendar 2012 is as follows:
- Gold produced - between 720,000 ounces and 750,000 ounces.
- Total cash cost at US$675 per ounce.
- Notional cash expenditure at US$1,050 per ounce. NCE includes increased
stripping costs to provide added flexibility for future production.
Damang
December September
2011 2011
Gold produced - 000`oz 49.6 54.3
Yield - g/t 1.3 1.4
Total cash cost - US$/oz 796 651
Notional cash expenditure - US$/oz 1,240 1,000
NCE margin - % 26 42
Gold production decreased from 54,300 ounces in the September quarter to
49,600 ounces in the December quarter as anticipated. The lower production was
mainly as a result of lower mining volumes from the high grade Damang pit
cutback (DPCB) due to short term mining constraints in the pit, as well as
excavator availability issues which necessitated the processing of lower grade
stockpiles.
Total tonnes mined, including capital stripping, decreased from 6.7 million
tonnes in the September quarter to 6.1 million tonnes in the December quarter.
The decrease in total tonnes mined was driven by low excavator availability.
Ore mined decreased from 1.2 million tonnes in the September quarter to 1.1
million tonnes in the December quarter. The total strip ratio, including
capital waste increased from 4.4 to 4.5. Initiatives are in place to improve
excavator availabilities through a combination of new equipment and business
process re-engineering including improved planned maintenance. It is not
uncommon for mines that have made the transition to owner mining to not
immediately reach desired efficiency levels.
Tonnage processed decreased from 1.23 million tonnes in the September quarter
to 1.19 million tonnes in the December quarter. This was mainly due to power
interruptions from the state utility infrastructure (ECG), which resulted in
lower mill availability.
Net operating costs increased from US$30 million (R214 million) in the
September quarter to US$37 million (R295 million) in the December quarter due
to higher maintenance cost and a gold-in-process inventory charge. Total cash
cost increased from US$651 per ounce to US$796 per ounce due to lower gold
production and higher net operating costs.
Operating profit decreased from US$63 million (R442 million) in the September
quarter to US$47 million (R378 million) in the December quarter as a result of
the lower gold production, lower gold price received and higher operating
costs.
Capital expenditure increased from US$20 million (R144 million) in the
September quarter to US$26 million (R207 million) in the December quarter,
with expenditure on pre-stripping, exploration and additional mining fleet
acquisitions.
Notional cash expenditure increased from US$1,000 per ounce in the September
quarter to US$1,240 per ounce in the December quarter due to the higher
operating costs, higher capital expenditure and lower production. The NCE
margin decreased from 42 per cent to 26 per cent as a result of the lower
dollar gold price received and the higher NCE.
The estimate for calendar 2012 is as follows:
- Gold produced - between 210,000 ounces and 220,000 ounces.
- Total cash cost at US$785 per ounce.
- Notional cash expenditure at US$1,230 per ounce.
South America region
Peru
Cerro Corona
December September
2011 2011
Gold produced - 000`oz 37.9 41.9
Copper produced - tonnes 9,544 9,599
Total equivalent gold produced - 000` eqoz 80.0 93.9
Total equivalent gold sold - 000` eqoz 78.8 90.5
Yield - gold - g/t 0.7 0.8
- copper - % 0.6 0.6
- combined - g/t 1.5 1.7
Total cash cost - US$/eqoz 489 494
Notional cash expenditure - US$/eqoz 719 615
NCE margin - % 56 58
Gold price * - US$/oz 1,689 1,693
Copper price * - US$/t 7,474 9,137
* Average daily spot price for the period used to calculate total equivalent
gold ounces produced.
Gold produced decreased from 41,900 ounces in the September quarter to 37,900
ounces in the December quarter, and copper production decreased marginally
from 9,599 tonnes to 9,544 tonnes. Equivalent gold production decreased from
93,900 ounces to 80,000 ounces mainly due to the lower copper price relative
to the gold price during the December quarter.
Concentrate with a payable content of 38,500 ounces of gold was sold at an
average price of US$1,666 per ounce and 9,100 tonnes of copper at an average
price of US$7,010 per tonne, net of treatment and refining charges. Total
equivalent gold sales amounted to 78,800 ounces for the December quarter.
During the December quarter a total of 2.89 million tonnes were mined compared
with 2.94 million tonnes in the September quarter. This decrease was as a
result of the mine sequencing schedule. Ore mined at 1.55 million tonnes was 7
per cent lower than the 1.66 million tonnes mined in the September quarter.
Gold and copper yield was similar to the September quarter at 0.7 grams per
tonne and 0.6 per cent, respectively.
The lower gold and copper production was mainly due to a 3 per cent decrease
in ore processed from 1.67 million tonnes in the September quarter to 1.62
million tonnes in the December quarter. The lower throughput was as a result
of a plant shutdown due to corrective maintenance on the electrical motor at
the SAG mill. Gold head grade decreased from 1.25 grams per tonne in the
September quarter to 1.18 grams per tonne in the December quarter in line with
the mine plan, and gold recovery decreased from 65 per cent to 64 per cent due
to a higher presence of arsenic in the material processed. Copper head grade
increased from 0.71 per cent in the September quarter to 0.72 per cent in the
December quarter. Copper recovery was similar at 85 per cent.
Net operating costs decreased from US$41 million (R289 million) in the
September quarter to US$35 million (R285 million) in the December quarter,
mainly driven by a decrease in the workers` participation accrual and a build-
up in gold-in-process during the December quarter.
Total cash cost decreased from US$494 per equivalent ounce in the September
quarter to US$489 per equivalent ounce in the December quarter, mainly due to
lower net operating costs partly offset by a decrease in equivalent ounces
sold.
Operating profit increased from US$93 million (R656 million) in the September
quarter to US$94 million (R765 million) in the December quarter, mainly as a
result of lower net operating costs during the December quarter.
Capital expenditure for the December quarter amounted to US$20 million (R161
million), compared with US$17 million (R118 million) in the September quarter.
This increase was mainly due to construction activities to complete the raise
of the tailings facility to level 3,747 metres.
Notional cash expenditure increased from US$615 per equivalent ounce in the
September quarter to US$719 per equivalent ounce in the December quarter, due
to the lower equivalent ounces produced and the higher capital expenditure,
partially offset by the lower operating cost. The NCE margin decreased from 58
per cent to 56 per cent as a result of the higher NCE.
The estimate for calendar 2012 is as follows:
- Metals (gold and copper) produced - between 325,000 equivalent ounces and
350,000 equivalent ounces.#
- Total cash cost at US$515 per equivalent ounce.
- Notional cash expenditure at US$780 per equivalent ounce.
# Equivalent ounces are based on a gold price of US$1,400 per ounce and a
copper price of US$8,600 per tonne.
Australasia region
St Ives
December September
2011 2011
Gold produced - 000`oz 120.4 115.0
Yield - heap leach - g/t 0.4 0.6
- milling - g/t 3.0 2.7
- combined - g/t 2.1 2.1
Total cash cost - A$/oz 770 927
- US$/oz 777 978
Notional cash expenditure - A$/oz 1,355 1,328
- US$/oz 1,368 1,401
NCE margin - % 19 18
Gold production increased from 115,000 ounces in the September quarter to
120,400 ounces in the December quarter, reflecting the increased grade of ore
delivered to Lefroy mill.
At the underground operations, ore mined increased from 427,000 tonnes at 4.9
grams per tonne in the September quarter to 482,000 tonnes at 5.2 grams per
tonne in the December quarter with increased tonnage and grade from Athena and
Cave Rocks.
At the open pit operations, total ore tonnes mined increased from 992,000
tonnes at 1.5 grams per tonne in the September quarter to 1,328,000 tonnes at
1.9 grams per tonne in the December quarter. Additional high grade ore was
sourced from the Mars/Minotaur link and Diana pits.
Total tonnes processed increased from 1.68 million tonnes at a yield of 2.1
grams per tonne in the September quarter to 1.77 million tonnes at a similar
yield in the December quarter. At the Lefroy mill, yield increased from 2.7
grams per tonne in the September quarter to 3.0 grams per tonne in the
December quarter reflecting the increased grade of ore mined. Tonnes milled
through the Lefroy mill decreased from 1.24 million tonnes to 1.18 million
tonnes, due to a SAG mill reline shut during the quarter. Gold production from
Lefroy increased from 106,600 ounces to 112,400 ounces. At the heap leach
facility tonnes processed increased from 440,000 tonnes at a head grade of
0.92 grams per tonne in the September quarter to 590,000 tonnes at a head
grade of 0.85 grams per tonne in the December quarter. Despite the higher
gold tonnes processed, gold production decreased from 8,400 ounces to 8,000
ounces due to decreased head grades as stockpile material was treated.
Net operating costs decreased from A$106 million (R791 million) in the
September quarter to A$85 million (R711 million) in the December quarter. The
decrease in costs was primarily due to a gold-in-process credit associated
with higher gold inventory at the end of the quarter as a result of the
increase in mining volumes. Total cash cost decreased from A$927 per ounce
(US$978 per ounce) to A$770 per ounce (US$777 per ounce), due to the increased
gold production and lower net operating costs.
Operating profit increased from A$81 million (R599 million) to A$118 million
(R924 million) due to increased production and lower net operating costs.
Capital expenditure increased from A$52 million (R384 million) to A$63 million
(R494 million) with the majority of additional expenditure incurred in pre-
stripping preparations of the Mars/Minotaur link and Diana pits.
Notional cash expenditure increased from A$1,328 per ounce (US$1,401 per
ounce) in the September quarter to A$1,355 per ounce (US$1,368 per ounce) in
the December quarter due to the increased capital expenditure partially offset
by the higher production. The NCE margin increased from 18 per cent to 19 per
cent as a result of the higher gold price partially offset by the higher NCE.
The estimate for calendar 2012 is as follows:
- Gold produced - between 440,000 ounces and 460,000 ounces.
- Total cash cost* at A$935 per ounce (US$935 per ounce).
- Notional cash expenditure* at A$1,540 per ounce (US$1,540 per ounce). NCE
includes once-off cost to convert from contractor to owner mining at the open
pit operations.
* Based on A$1=US$1.00.
Agnew
December September
2011 2011
Gold produced - 000`oz 52.0 53.7
Yield - g/t 6.3 6.4
Total cash cost - A$/oz 651 667
- US$/oz 657 704
Notional cash expenditure - A$/oz 1,074 1,047
- US$/oz 1,085 1,105
NCE margin - % 36 37
Gold production decreased marginally from 53,700 ounces in the September
quarter to 52,000 ounces in the December quarter.
Ore mined from underground decreased from 148,000 tonnes at a head grade of
11.1 grams per tonne in the September quarter to 143,000 tonnes at a head
grade of 10.7 grams per tonne in the December quarter. The minor decrease in
tonnes was the result of a short delay in the installation of paste fill
piping infrastructure which has since been completed. Ore mined from the
Songvang open pit increased from 135,000 tonnes at a head grade of 1.7 grams
per tonne in the September quarter to 361,000 tonnes at a head grade of 1.6
grams per tonne in the December quarter. Gold production from Songvang
decreased from 9,600 ounces to 7,200 ounces as the majority of the Songvang
ore was stockpiled due to milling constraints. Underground gold production
increased from 44,100 ounces to 44,800 ounces.
Tonnes processed decreased from 262,000 tonnes in the September quarter to
258,000 tonnes in the December quarter, with a marginal decrease in the
combined yield from 6.4 grams per tonne to 6.3 grams per tonne.
Net operating costs decreased from A$35 million (R262 million) in the
September quarter to A$32 million (R264 million) in the December quarter,
mainly due to a credit from the build-up in stockpile from the Songvang open
pit during the quarter. Total cash cost decreased from A$667 per ounce (US$704
per ounce) to A$651 per ounce (US$657 per ounce) due to lower net operating
costs.
Operating profit increased marginally from A$55 million (R404 million) in the
September quarter to A$56 million (R444 million) in the December quarter due
to the lower net operating costs.
Capital expenditure decreased from A$20 million (R151 million) in the
September quarter to A$19 million (R155 million) in the December quarter. This
included A$8 million spent on underground development and A$4 million on
mining fleet.
Notional cash expenditure increased from A$1,047 per ounce (US$1,105 per
ounce) in the September quarter to A$1,074 per ounce (US$1,085 per ounce) in
the December quarter due to the lower production, partially offset by the
decrease in net operating costs. The NCE margin at 36 per cent was similar to
the September quarter.
The estimate for calendar 2012 is as follows:
- Gold produced - between 190,000 ounces and 200,000 ounces.
- Total cash cost* at A$785 per ounce (US$785 per ounce).
- Notional cash expenditure* at A$1,120 per ounce (US$1,120 per ounce).
* Based on A$1=US$1.00.
Year ended 31 December 2011 compared with
year ended 31 December 2010
Group attributable equivalent gold production decreased marginally from 3,497
thousand ounces for the year ended December 2010 to 3,485 thousand ounces for
the year ended December 2011.
At the South African operations gold production decreased from 1,866 thousand
ounces (58,029 kilograms) to 1,720 thousand ounces (53,496 kilograms). The
majority of this decrease was due to the wage-related industrial action during
the September quarter, safety-related stoppages and slightly lower yields.
KDC`s gold production decreased from 1,215 thousand ounces (37,790 kilograms)
to 1,100 thousand ounces (34,218 kilograms). Beatrix`s gold production
decreased from 377,000 ounces (11,715 kilograms) to 347,000 ounces (10,787
kilograms) and South Deep`s gold production was similar at 273,000 ounces
(8,491 kilograms).
At the West African operations, total managed gold production decreased from
963,000 ounces for the year ended December 2010 to 935,000 ounces for the year
ended December 2011. At Tarkwa, gold production decreased from 735,000 ounces
to 717,000 ounces due to slightly lower grades fed to the CIL plant. At
Damang, gold production decreased from 228,000 ounces to 218,000 ounces.
In South America, gold equivalent production at Cerro Corona decreased from
406,000 ounces for the year ended 2010 to 383,000 ounces for the year ended
2011, due to planned lower gold and copper grades and a lower copper to gold
price ratio.
At the Australasia operations gold production increased by 6 per cent from
620,000 ounces for the year ended 2010 to 659,000 ounces for the year ended
2011. St Ives decreased marginally from 468,000 ounces to 465,000 ounces.
Production at Agnew increased from 152,000 ounces to 194,000 ounces. An
additional 20,000 ounces was produced from the Songvang open pit which
commenced in the June quarter, with the balance from increased production at
Kim, where poor ground conditions impacted production last year.
Income statement
Revenue increased by 22 per cent from R34,391 million (US$4,705 million) to
R41,877 million (US$5,800 million). The average gold price increased by 27 per
cent from R287,150 per kilogram (US$1,220 per ounce) for the year ended 2010
to R364,216 per kilogram (US$1,569 per ounce) for the year ended 2011. The
average Rand/US dollar exchange rate of R7.22 for the year ended 2011 was
marginally stronger than the average of R7.32 for the year ended 2010, while
the Rand/Australian dollar weakened by 11 per cent from A$1 = R6.71 to A$1 =
R7.45. The average Australian/US dollar exchange rate strengthened by 12 per
cent from A$1.00 = US$0.92 for the year ended 2010 to A$1.00 = US$1.03 for the
year ended 2011.
Net operating costs increased by 4 per cent from R19,922 million (US$2,722
million) to R20,765 million (US$2,876 million). Total cash cost for the Group
increased from R165,526 per kilogram (US$703 per ounce) to R184,515 per
kilogram (US$795 per ounce) due to a decrease in managed gold production from
119,766 kilograms (3.85 million ounces) to 114,979 kilograms (3.70 million
ounces) and the increase in net operating costs.
At the South African operations, operating costs increased by 3 per cent from
R11,677 million for the year ended 2010 to R12,000 million for the year ended
2011. This was due to annual wage increases, a 28 per cent electricity tariff
increase and normal inflationary increases, partly offset by cost saving
initiatives at the operations. Total cash cost at the South African operations
increased from R197,156 per kilogram to R224,815 per kilogram as a result of
the decrease in production and the marginally higher operating costs.
At the West African operations, net operating costs decreased from US$564
million for the year ended 2010 to US$512 million for the year ended 2011. At
Tarkwa, net operating costs decreased from US$419 million to US$371 million.
This was due to the savings realised on the conversion to owner maintenance
and the reassessment of the carrying value of gold-in-process inventories,
partly offset by an increase in power and fuel costs. At Damang, net operating
costs decreased from US$146 million to US$140 million. This decrease was
mainly due to cost savings as a result of the introduction of owner mining,
partly offset by an increase in power and fuel costs. Total cash cost for the
region decreased from US$594 per ounce for the year ended 2010 to US$590 per
ounce for the year ended 2011.
At Cerro Corona in South America, net operating costs increased from US$142
million for the year ended 2010 to US$158 million for the year ended 2011,
mainly due to an increase in the workers` statutory participation in profit.
Total cash cost increased from US$363 per ounce for the year ended 2010 to
US$437 per ounce for the year ended 2011, mainly due to the lower equivalent
production and an increase in the workers` statutory participation in profits.
At the Australasia operations, net operating costs increased from A$458
million for the year ended 2010 to A$528 million for the year ended 2011. At
St Ives, net operating costs increased from A$352 million to A$400 million
mainly due to increased waste normalisation charges as a result of mining more
ounces from the more expensive Leviathan pit. At Agnew, net operating costs
increased from A$106 million to A$128 million due to the increase in
production from mining the Songvang open pit, which became operational during
the year ended 2011. Total cash costs for the region increased from A$753 per
ounce for the year ended 2010 to A$815 per ounce for the year ended 2011.
Operating profit increased from R14,469 million (US$1,983 million) to R21,112
million (US$2,924 million).
Exploration expenditure increased from R659 million (US$90 million) to R832
million (US$115 million) mainly due to an increase in exploration projects and
activity.
Feasibility and evaluation costs increased from R66 million (US$9 million) to
R126 million (US$17 million) mainly due to increased activity at the Far
Southeast project.
Non-recurring costs amounted to R483 million (US$67 million) for the year
ended 2011 compared with R2,589 million (US$360 million) for the year ended
2010 and included voluntary separation packages and Business process re-
engineering costs at all the operations. For the year ended 2010 non-recurring
items also included the empowerment transactions made up of share-based
payments for the Employee Share Option plan of R1.2 billion (US$172 million),
share-based payments for the South Deep transaction of R825 million (US$116
million) and the share-based payments for the GFIMSA (Gold Fields` South
Africa operations) transaction of R73 million (US$10 million).
Government royalties increased from R647 million (US$88 million) for the year
ended 2010 to R1,081 million (US$150 million) for the year ended 2011 driven
by the increase in revenue and an increase in the royalty rate at Tarkwa and
Damang, from 3 per cent to 5 per cent with effect from 1 April 2011.
Taxation increased from R2,266 million (US$310 million) for the year ended
2010 to R4,335 million (US$600 million) for the year ended 2011 in line with
the higher taxable income.
Net earnings attributable to owners of the parent amounted to R7,027 million
(US$973 million), compared with earnings of R1,139 million (US$153 million)
for the year ended 2010.
Earnings excluding non-recurring items, gains and losses on foreign exchange,
financial instruments and gains or losses of associates after taxation,
amounted to R7,242 million (US$1,003 million) for the year ended 2011,
compared with R3,756 million (US$518 million) for the year ended 2010.
Cash flow
Cash inflow from operating activities increased from R12.4 billion (US$1.7
billion) for the year ended 2010 to R15.7 billion (US$2.2 billion) for the
year ended 2011. The higher profit in 2011, mainly due to the 27 per cent
higher gold price was partially offset by higher royalties and taxation paid,
and an investment into working capital. A release of working capital of R1.5
billion (US$199 million) in 2010 compared with an investment into working
capital of R259 million (US$36 million) in 2011. The release in 2010 was due
to a decrease in accounts receivable as a result of the collection of
outstanding VAT at La Cima and an increase in accounts payable due to timing
of payments. The investment into working capital in 2011 was due to an
increase in inventory at Tarkwa and St Ives.
Dividends paid increased from R1.2 billion (US$156 million) in 2010 to R1.5
billion (US$217 million) in 2011.
Cash outflows from investing activities increased from R8.8 billion (US$1.2
billion) in 2010 to R18.0 billion (US$2.5 billion) in 2011.
Capital expenditure increased from R8.7 billion (US$1.2 billion) in 2010 to
R10.2 billion (US$1.4 billion) in 2011. At the South Africa region, capital
expenditure was similar at R4.9 billion. At the West Africa region, capital
expenditure increased from US$273 million to US$307 million mainly due to
increased pre-stripping and the acquisition of additional mining equipment at
both Tarkwa and Damang. In South America, at Cerro Corona, capital expenditure
was similar at US$69 million. At the Australasia region, capital expenditure
increased from A$183 million to A$249 million with the majority of the
increased expenditure on pre-stripping at St Ives. The balance of the capital
expenditure of R740 million (US$102 million) was due to expenditure on growth
projects.
Payment for the FSE project of R371 million (US$54 million) in 2010 compared
with a second payment for the FSE project of R535 million (US$66 million) in
2011. This is in line with the terms of the option agreement to acquire a 60
per cent interest in the undeveloped gold-copper deposit in the Philippines.
The option agreement was entered into with Lepanto Consolidated Mining Company
(Lepanto), a company listed in the Philippines, and Liberty Express Assets, a
private holding company.
Investing activities in 2011 included the buy-out of non-controlling interest
holders at La Cima of R2.6 billion (US$382 million) representing 17.8 per cent
of the issued shares of Gold Fields La Cima, taking the Group`s holding to
98.5 per cent. Buy-out of non-controlling interest holders at Ghana amounted
to R4.6 billion (US$667 million) and represented 18.9 per cent of the issued
shares of Gold Fields Ghana and Abosso Goldfields taking the Group`s holding
to 90.0 per cent.
Purchase of investments decreased from R116 million (US$16 million) in 2010 to
R1 million (US$0.1 million) in 2011.
Proceeds on the disposal of investments decreased from R515 million (US$80
million) in 2010 to R99 million (US$14 million) in 2011. In 2010 the disposal
mainly related to the sale of shares in Eldorado Gold Corporation and in 2011
mainly to the sale of shares in Gold One International Limited.
Net cash inflow from financing activities increased from R1.5 billion (US$214
million) for 2010 to R3.7 billion (US$551 million) for 2011. Loans received
decreased from R15.9 billion (US$2.2 billion) to R8.2 billion (US$1.2 billion)
and loans repaid decreased from R14.4 billion (US$2.0 billion) to R4.8 billion
(US$655 million). The increase in net loans raised in 2011 was due to draw-
downs to partly fund the purchase of non-controlling interest holders in La
Cima and Ghana.
Loans received from non-controlling interest holders increased from R63
million (US$9 million) in 2010 to R225 million (US$31 million) in 2011 and
relate to Buenaventura`s contribution of 49 per cent to the capital
expenditure on the Chucapaca project.
The net cash inflow of R3.9 billion (US$553 million) in 2010 compared with an
outflow of R80 million (US$40 million) in 2011. After accounting for a
positive translation adjustment of R666 million (negative US$25 million) on
offshore cash balances, the cash inflow for 2011 was R586 million (outflow
US$66 million). The cash balance at the end of 2011 was R6.1 billion (US$744
million) compared with R5.5 billion (US$810 million) at the end of 2010.
Growth
Gold Fields has a target of achieving five million ounces per annum, in
production and/or in development, by the end of 2015. To this end we are in
the process of developing an extensive pipeline of projects which is discussed
below.
Project development
Far Southeast
Drilling to confirm and test the limits of the previously defined
mineralisation was completed in October 2011 and follow-up exploration
commenced. The new drilling identified significant extensions to
mineralisation beyond original interpretations and on-going programmes will
now scope the full system and complete resource infill drilling of the main
zone. Various bulk mining options are under investigation focusing on an
initial exploration target of 900 million tonnes at 0.77 grams per tonne gold
and 0.54 per cent copper.
In November 2011, Lepanto Consolidated Mining Company filed an application for
the grant of a Financial or Technical Assistance Agreement ("FTAA") for the
Far Southeast project in respect of prospecting rights. The acquisition of a
FTAA licence allows a foreign corporation to legally own and control a
majority stake of any large-scale mineral resource in the Philippines. Gold
Fields is entitled to exercise the option at any time prior to the granting of
the FTAA but not required to make a decision to do so until the FTAA is
granted. The FTAA is expected to be granted in the second half of 2012,
following which, it is anticipated that Gold Fields will exercise the option
and make payment of the final instalment of US$220 million to acquire 60 per
cent of FSE.
In late October 2011, the underground area where drilling is currently being
conducted for the FSE project, was flooded, with all 8 underground drill rigs
being submerged. Remedial action was undertaken to dewater the drill cuddies
as well as rehabilitate areas affected by the water to ensure a safe working
environment. It is expected that underground drilling will recommence in March
2012. An initial resource estimate is planned for the second half of 2012.
The deliverables for calendar 2012 is as follows:
- continue drill-out and deliver first resource; and
- commence with pre-feasibility study.
Chucapaca
The Chucapaca feasibility study progressed to schedule. Mining studies using
the resource model reported in the previous quarter focused on pit design and
optimisation of the mining schedules. Waste disposal strategies including site
location options and management of potential acid-forming materials were
reviewed in the December 2011 quarter.
Metallurgical and plant design activities continued, with the finalisation of
the process flow sheet. Detailed metallurgical test work was finalised and
analysis of data is being used to optimise the plant design. Baseline field
work was completed for environmental permitting and activities are on schedule
to be able to submit the project environment impact assessment by the second
half of 2012. The feasibility study is scheduled to be completed during the
second half of 2012.
The deliverables for calendar 2012 is as follows:
- deliver feasibility study and development decision; and
- commence with detailed engineering.
Arctic Platinum
Preliminary pre-feasibility studies on the amenability of the
PlatsolRegistered process for the Suhanko project were completed. Pilot scale
test-work demonstrated that the process could effectively recover copper,
nickel, gold and PGE metals (platinum, palladium and rhodium) at an on-site
processing facility. Parallel mining studies also demonstrated viable open pit
positions at the Suhanko project deposits - Konttijarvi and Ahmavaara.
The pre-feasibility study is continuing with a focus on re-engineering the
project to fully optimise the potential capital spend. This includes a full
review of the process plant design and infrastructure, optimisation of the
mining schedules and definition of additional resources at the Suhanko North
prospect. A total of 11,592 metres of a 30,000 metre resource drilling
programme has been completed on the Suhanko North prospect by the end of
December. The aim is to define an additional 50 to 100 million tonnes of
resource to provide operating flexibility and to extend the life of mine of
the Suhanko project beyond the current estimated 14 years. This work will be
completed and the pre-feasibility updated by the end of 2012.
Gold Fields received approval from authorities in Finland for an environment
impact assessment Waiver Application for the PlatsolRegistered process to be
included in the original approved environment impact assessment. This allows
Gold Fields to proceed with an Environmental Permit amendment application for
the Suhanko Mining Licence which is expected to be submitted in the March
quarter of this year. An additional environment impact assessment will be
submitted later in 2012 covering the Suhanko II area which includes the
Suhanko North prospect currently under drilling investigation.
The deliverables for calendar 2012 is as follows:
- complete drilling on Suhanko North and PlatsolRegistered amenability tests
on new resources; and
- optimise project based on new resources.
Damang Super-pit
Resource infill drilling for the pre-feasibility study was finalised in
October 2011. A total of 38,000 metres was completed which successfully
delineated mineralisation consistent with current mined ores over the entire
3.5 kilometre strike of the project and to depths of up to 600 metres below
the original surface. An additional 17,000 metres of drilling was completed
this quarter for geotechnical assessment of the potential Super-pit cutback.
An updated resource model is expected to be completed in the March quarter
2012 to be used for the final mining component of the study.
Mining and engineering studies progressed to schedule with specific focus on
plant design options and location, tailings and waste disposal locations and
strategies and water balance management. Detailed metallurgical test- work
also commenced using 900 kilograms of drill core representing a comprehensive
suite of materials from the deposit.
Recent proposed changes to taxes and royalties could negatively impact the
economic return of this project. Gold Fields has engaged with the relevant
authorities to understand the potential risk and will reduce project
development activity pending the outcome of these discussions. Thereafter a
decision will be made on the future viability of the project.
The deliverables for calendar 2012 is as follows:
- complete pre-feasibility study; and
- commence with feasibility study depending on the outcome of the proposed new
taxes.
Greenfields exploration
In addition to the four resource development projects mentioned above, the
greenfields exploration portfolio also consists of four advanced drilling
projects, twelve initial drilling projects and eight target definition
projects in Peru, Chile, Argentina, Ghana, Mali, Guinea, Canada, Kyrgyzstan,
Australia and the Philippines. A total of 62,348 metres was drilled on ten
greenfields projects during the quarter compared with 40,947 metres drilled in
the previous quarter and 46,507 metres in the December 2010 quarter.
Africa
Exploration drilling recommenced at the Yanfolila project in southern Mali
(Gold Fields 85 per cent) in October 2011 and a total of 8,891 metres of
reverse circulation and diamond drilling as well as 13,263 metres of aircore
drilling were completed by December 2011. The drilling programme focused on
three of six additional prospect areas in order to identify additional
resources within 25 kilometres of the central Komana camp. An additional
48,000 metres of reverse circulation and diamond drilling is planned in the
first half of 2012. A further 16,737 metres of aircore drilling is also
planned to delineate anomalies identified during geochemical surveys completed
during the 2011 field season.
On the Tinguele prospect at the Kangare project (Gold Fields 90 per cent) in
southern Mali, on-going target definition work included geophysical surveys
(induced polarisation and ground magnetics) and 10,462 metres of aircore
drilling over an extensive geochemical anomaly, where three combination
reverse circulation and core drill holes intersected broad intervals of low
level mineralisation in August and September 2011. Follow-up reverse
circulation and diamond drilling is planned in early 2012.
At the Asheba project in Ghana (Gold Fields 90 per cent) a follow-up drilling
programme commenced in November 2011 and a total of 2,783 metres of reverse
circulation and diamond drilling were completed on the two main target areas.
Assay results are pending. An additional 3,747 metres of reverse circulation
and diamond drilling are planned in the March 2012 quarter.
At the Telikan project in Guinea (Gold Fields 65 per cent) follow-up soil
sampling, trenching and a programme of 5,350 metres of reverse circulation
drilling tested two first priority gold-in-soil anomalies in December 2011.
All assay results are pending.
North America
In British Columbia, Canada, Gold Fields can earn up to a 70 per cent interest
in the Woodjam copper-gold project. In November 2011, the original joint
venture partners Fjordland Exploration Inc. (TSX.V:"FEX") and Cariboo Rose
Resources (TSX.V:"CRB") completed a plan of arrangement which spun out the
Woodjam project into Consolidated Woodjam Copper Corp. ("WCC.V"), a separate
company now listed on the TSX Venture Exchange. Gold Fields anticipates
vesting with 51 per cent of the Woodjam project during the March 2012 quarter.
Gold Fields also signed a separate joint venture agreement in 2011 to earn up
to 70 per cent of the nearby Redgold copper-gold property which is owned by a
private company. During the quarter, a total of 7,073 metres of diamond and
reverse circulation drilling were completed on these properties. Additional
activities included metallurgical testing, resource modelling and work on a
conceptual study to be completed in March 2012.
At the Toodoggone project in British Columbia, Canada where Gold Fields can
earn up to 75 per cent in a joint venture with Cascadero Copper Corporation
(TSX.V:"CCD"), results of the diamond drilling programme completed in July
2011 on the Mex copper-gold target are mixed and a decision on the way forward
will be made in early 2012.
South America
In Peru, Gold Fields is exploring the Moquegua and Tacna projects located in
the southern Altiplano region. Initial reverse circulation drilling partially
tested the Ichocollo porphyry gold target at the Tacna project in September
2011. However, the drilling programme was suspended after two holes due to
regional social unrest. This programme is scheduled to resume in early 2012
followed by initial reverse circulation drilling programmes on two other
target areas.
At the Moquegua Project, an initial drilling programme of six diamond drill
holes was completed between August and November 2011 on the Pacosani breccia
target. Final assay results are still incomplete but results to date have not
been encouraging. In December 2011, initial diamond drilling commenced on the
Chapi Chiara epithermal gold target which is part of the Amantina joint
venture signed with Vena Resources Inc. to earn up to a 70 per cent interest.
The Amantina joint venture property is contiguous with the Moquegua project.
In Chile, Gold Fields has an option agreement with SBX Asesorias e
Inversiones, a private Chilean company, which allows Gold Fields the option to
acquire 100 per cent of two properties, Salares Norte and Piedra. At Salares
Norte, Gold Fields completed an initial reverse circulation drilling programme
in April 2011. Results were encouraging and follow-up diamond drilling
commenced in December 2011 and will continue into 2012.
Gold Fields signed a joint venture agreement in October 2011 to earn up to 70
per cent of the Taguas gold-silver project in San Juan province, Argentina
from Minera S.A., a private company. Diamond drilling commenced in December
2011 and will continue into 2012.
Australasia
In the East Lachlan Fold Belt of New South Wales, Australia, Gold Fields holds
an 80 per cent interest in six project areas (Wellington North, Cowal East,
Jemalong, Moorefield, Parkes-Clancy and Parkes-Centaurus) and has completed
the 51 per cent earn-in of a potential 80 per cent on the Myall joint venture.
Gold Fields has expanded its own ground position in this copper- gold porphyry
belt with the addition of four new project areas in its own right and now
holds approximately 2,100 square kilometres.
A full field aircore drilling programme is on-going at the Myall concession.
Elsewhere in the belt, 14 initial drill targets were tested in 2011 with
encouraging results. Target definition work at Wellington North and the Cowal
East properties is revealing a number of new targets which are scheduled for
initial drilling in early 2012.
In September 2011 Gold Fields signed an option agreement with Bezant Resources
PLC to acquire 100 per cent of the Mankayan copper-gold project located on
Luzon Island in the Philippines. The Mankayan project is immediately adjacent
to the Far Southeast project and contains a significant buried gold-copper
porphyry deposit located at Guinaoang about 4 kilometres east of the Far
Southeast deposit. Diamond drilling is planned at Mankayan in 2012.
Other regions
In northwestern Kyrgyzstan, Gold Fields owns a 60 per cent interest in the
Talas joint venture with partner Orsu Metals Corporation. Due to on-going
social and political unrest in Kyrgyzstan which began with a revolution in
April 2010, field work has been suspended. In October 2011, a new President
was elected and he is now consolidating his new government. Gold Fields and
its partner will continue to monitor the situation and make a decision on the
way forward during the current year.
Project generation and near mine exploration
St Ives
A total of 65,000 metres of drilling was completed at St Ives over the last
quarter. Resource drilling focused on new target areas immediately north of
the operating Leviathan open pit, which targeted drilling in the Neptune-
Revenge area and on-going underground exploration at Cave Rocks and Argo-
Athena. Resource updates were completed for all of the St Ives deposits and
will be used to update the December 2011 Resource and Reserve statement for
release in 2012.
With the majority of late stage drilling completed for the year there will now
be an increased effort on early stage exploration projects. More than 15
targets across the St Ives project tenement returned positive drilling results
during the quarter requiring follow-up in 2012.
Agnew
Drilling continued on the High Grade Shoots project at Waroonga.
Interpretation of three steep-plunging mineralised shoots in the Waroonga
North area has been broadly confirmed. Geology is proving consistent with
interpretation and ore positions as expected. Grade has generally been
slightly lower than original indications from very sparse drilling. Assessment
of the target will be completed after finalisation of the drilling in the
March 2012 quarter.
Resource infill drilling was completed at Cinderella (2,300 metres of reverse
circulation drilling) to determine short scale geological and grade
variability in a starter pit area. Results proved positive and consistent with
original models and a final reserve optimisation is expected to be completed
for the March 2012 quarter.
Damang
Drilling activity at Damang continued on the programme at Amoanda with 7,979
metres of infill drilling to the north of the existing open pit completed. The
aim of this programme is to determine if increased drilling can identify
similar upgrades in resource volumes as identified in the Damang Super-pit
project. Any such upgrade to resource in this area would have potential to
support a substantial cut back in this area. Initial assays received have
confirmed the existing model. The majority of assays will be returned in early
2012 once the sample backlog from the Damang Super-pit project has been
processed.
Drilling on the Bonsa prospect was postponed while drill rigs were utilised to
complete a major geotechnical drilling campaign on the Super-pit project.
Cerro Corona
A final geological and resource model was completed using the new data
acquired from drilling and extensive spectral logging of core during 2011.
This model will be used to update the Mineral Resource and Reserve
declaration. As at end of December 2011 detailed analysis and modelling of the
spectral data has enabled the development of a comprehensive clay and
alteration model to accompany the traditional grade model and provides
excellent information that can assist in optimising the feed of material to
the processing facility and identification of clay materials required for
local infrastructure projects.
Corporate
Surface Tailings Deposits
Gold Fields and Gold One have entered into a Memorandum of Understanding (MOU)
to investigate the viability of concurrently reprocessing surface tailings
deposits in the West Rand region of South Africa`s Witwatersrand Basin.
In terms of the MOU, Gold Fields and Gold One will jointly investigate the
feasibility of establishing a joint venture into which both will contribute
surface assets for retreatment. These assets are expected to comprise in
excess of 700 million tonnes and represent over 60 per cent of the total
tailings material in the region. The aim is to complete a detailed scoping
study by the middle of this year, following which a decision will be taken on
whether to progress the study to a feasibility level.
Should the joint venture proceed, the intention is to reclaim and retreat the
historical tailings material and current tailings to recover residual gold,
uranium and sulphur. A key objective of the project will be to address the re-
deposition of the residues in accordance with modern sustainable deposition
practices, ultimately supporting mine closure in an environmentally
sustainable manner.
Awards and achievements
At the Cop 17 United Nations Climate Change Conference in Durban on 6 December
2011, Gold Fields was ranked first in the JSE Top 100 Carbon Disclosure
Leadership Index (CDLI) by the global Carbon Disclosure Project (CDP). CDLI
ranks companies listed on the JSE in South Africa on their disclosure of
carbon emissions. In 2010 Gold Fields was joint first. This year it was the
sole winner. At the same time the Johannesburg Stock Exchange (JSE) rated Gold
Fields as one of its most consistent performers in its Socially Responsible
Investment (SRI) Index for five years running.
The CDP is based in London and was set up by institutional investors to
determine their climate exposure risk. The CDP represents 655 institutional
investors holding US$78 trillion in assets to help reveal the risk in their
investment portfolios.
The global CDP organisation annually ranks 5,000 companies in 60 countries
according to their disclosure of carbon emissions. In SA the project is
supported by the National Business Initiative. Companies are also evaluated
based on strategies and projects to mitigate the impact of climate change. In
this ranking, the Carbon Performance Ratings, Gold Fields was one of only two
JSE Top 100 companies to be placed in the top band for climate mitigation and
adaptation actions.
In its annual Socially Responsible Investment assessment the JSE identified
this year`s constituents of the Index as well as 22 companies who have met the
best performer threshold. This threshold covered not only a social and
governance threshold, but this year also comprised a higher climate change
threshold and a newly introduced environmental performance threshold. Gold
Fields was again rated by the JSE as one of its best performers this year in
the high environmental impact category. This makes the company one of only six
consistent best performers for five years running.
Ranked 4th in the Dow Jones Sustainability Index
Gold Fields has been ranked fourth in the mining sector of the 2011 Dow Jones
Sustainability Index (DJSI), the most recognised measure of the sustainability
performance of listed companies worldwide.
The DJSI performance, which was released at the World Economic Forum in Davos
last week, indicates that Gold Fields sustainability practices rank in the top
5 per cent of resources companies worldwide. It is also the top South African-
listed mining company on the DJSI.
This is the first time that Gold Fields has participated in the DJSI
assessment, which is carried out by investment firm Sustainable Asset
Management on behalf of the Dow Jones Index. Launched in 1999, the DJSI ranks
the performance of global sustainability leaders, through an annual assessment
of the world`s 2,500 largest public companies. Among other factors, it
measures management practices surrounding economic, environmental and social
engagement approaches.
Cash dividend
In line with the company`s policy to pay out 50 per cent of its earnings,
subject to investment opportunities, a final dividend, for the period ended 31
December 2011, has been declared payable to shareholders as follows:
Final dividend number 76: 230 SA cents per share
Last date to trade cum- dividend: Friday 2 March 2012
Sterling and US dollar conversion date: Monday 5 March 2012
Trading commences ex dividend: Monday 5 March 2012
Record date: Friday 9 March 2012
Payment date: Monday 12 March 2012
Share certificates may not be dematerialised or rematerialised between
Monday, 5 March 2012 and Friday, 9 March 2012, both dates inclusive.
Outlook
Gold production for the year ending December 2012 is estimated at between 3.5
million attributable equivalent ounces and 3.7 million attributable equivalent
ounces.
Total cash cost is estimated at US$860 per ounce (R220,000 per kilogram).
Operational NCE is estimated at US$1,300 per ounce (R335,000 per kilogram).
The capital projects group is anticipating to spend between US$40 per ounce
and US$70 per ounce on realisation costs of projects, including drilling,
feasibility studies and early-work capital expenditure on our advanced
projects. These projects will assist in delivering our 5 million ounces in
production and/or development by 2015. These estimates are based on an average
exchange rate of R/US$8.00 and US$/A$1.00 for the year. Estimates by quarter
are expected to vary depending upon the timing of capital expenditure,
seasonal electricity tariffs and production variations due to statutory
holidays.
The above is subject to an improved safety performance limiting the impact of
safety-related stoppages and the forward looking statement on pages 1 and 28.
Basis of accounting
The condensed consolidated preliminary financial information is prepared in
accordance with IAS 34: Interim Financial Reporting, and South African
Statements and Interpretations of Statements of Generally Accepted Accounting
Practice (AC 500 series).
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.
Auditor`s Review
The condensed consolidated preliminary financial statements of Gold Fields
Limited for the year ended 31 December 2011 as set out on pages 14 to 19 have
been reviewed by the company`s auditor, KPMG Inc. In their review report dated
17 February 2012, which is available for inspection at the Company`s
Registered Office, KPMG Inc. state that their review was conducted in
accordance with the International Standard on Review Engagements 2410, Review
of Interim Information Performed by the Independent Auditor of the Entity,
which applies to a review of consolidated preliminary financial information,
and have expressed an unmodified conclusion on the condensed consolidated
preliminary financial statements.
NJ Holland
Chief Executive Officer
17 February 2012
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
December September December
SOUTH AFRICAN RAND
2011 2011 2010
Revenue 12,266.9 11,059.5 9,255.3
Operating costs, net (5,358.6) (5,404.1) (5,015.4)
- Operating costs (5,651.9) (5,450.4) (5,047.6)
- Gold inventory change 293.3 46.3 32.2
Operating profit 6,908.3 5,655.4 4,239.9
Amortisation and depreciation (1,761.3) (1,377.4) (1,333.5)
Net operating profit 5,147.0 4,278.0 2,906.4
Net interest paid (61.1) (69.0) (64.7)
Share of gain/(loss) of associates after
taxation 26.8 5.0 11.0
Gain/(loss) on foreign exchange 9.6 72.2 1.4
Gain/(loss) on financial instruments 0.9 (0.3) 9.5
Share-based payments (113.2) (121.6) (73.9)
Other (2.1) (74.3) (79.7)
Exploration (291.6) (188.5) (223.2)
Feasibility and evaluation costs (33.1) (48.0) (66.4)
Profit before royalties, taxation and
non-recurring items 4,683.2 3,853.5 2,420.4
Non-recurring items (132.5) (167.2) (2,328.9)
Profit before royalties and taxation 4,550.7 3,686.3 91.5
Royalties (375.5) (304.5) (91.9)
Profit/(loss) before taxation 4,175.2 3,381.8 (0.4)
Mining and income taxation (1,466.0) (1,222.8) (560.6)
- Normal taxation (1,190.0) (841.0) (679.7)
- Deferred taxation (276.0) (381.8) 119.1
Net profit/(loss) 2,709.2 2,159.0 (561.0)
Attributable to:
- Owners of the parent 2,604.9 2,054.6 (777.2)
- Non-controlling interest 104.3 104.4 216.2
Non-recurring items:
Profit/(loss) on sale of investments 92.6 - (3.5)
Profit/(loss) on sale of assets 0.5 0.4 2.2
Restructuring costs (143.6) (167.4) (179.2)
Share-based payments on BEE transactions - - (2,124.8)
- ESOP - - (1,227.3)
- South Deep transactions - - (824.8)
- GFIMSA transactions - - (72.7)
Impairment of investments and assets (70.5) (0.2) -
Other (11.5) - (23.6)
Total non-recurring items (132.5) (167.2) (2,328.9)
Taxation 53.0 55.0 58.6
Net non-recurring items after taxation (79.5) (112.2) (2,270.3)
Net earnings/(loss) 2,604.9 2,054.6 (777.2)
Net earnings/(loss) per share (cents) 361 284 (110)
Diluted earnings/(loss) per share (cents) 357 280 (109)
Headline earnings/(loss) 2,581.7 2,054.4 (775.7)
Headline earnings/(loss) per share
(cents) 357 284 (110)
Diluted headline earnings/(loss) per
share (cents) 353 281 (109)
Net earnings excluding gains and losses
on foreign exchange, financial
instruments, non-recurring items and
share of gain/(loss) of associates after
royalties and taxation 2,652.9 2,111.4 1,474.6
Net earnings per share excluding gains
and losses on foreign exchange,
financial instruments, non-recurring
items and share of gain/(loss) of
associates after royalties and taxation
(cents) 368 291 206
Gold sold - managed kg 28,157 28,675 30,449
Gold price received R/kg 435,661 385,684 303,958
Total cash cost R/kg 199,155 192,997 161,894
Year ended
December December
SOUTH AFRICAN RAND
2011 2010
Revenue 41,876.8 34,390.7
Operating costs, net (20,765.3) (19,921.9)
- Operating costs (21,312.0) (20,081.8)
- Gold inventory change 546.7 159.9
Operating profit 21,111.5 14,468.8
Amortisation and depreciation (5,655.9) (5,283.5)
Net operating profit 15,455.6 9,185.3
Net interest paid (202.5) (212.4)
Share of gain/(loss) of associates after taxation 29.1 (116.3)
Gain/(loss) on foreign exchange 65.8 (19.3)
Gain/(loss) on financial instruments 31.6 1.0
Share-based payments (479.3) (359.9)
Other (237.3) (319.7)
Exploration (832.1) (659.1)
Feasibility and evaluation costs (125.6) (66.4)
Profit before royalties, taxation and non-recurring
items 13,705.3 7,433.2
Non-recurring items (482.9) (2,589.0)
Profit before royalties and taxation 13,222.4 4,844.2
Royalties (1,081.0) (647.4)
Profit/(loss) before taxation 12,141.4 4,196.8
Mining and income taxation (4,335.1) (2,265.8)
- Normal taxation (3,151.5) (1,633.9)
- Deferred taxation (1,183.6) (631.9)
Net profit/(loss) 7,806.3 1,931.0
Attributable to:
- Owners of the parent 7,026.7 1,139.3
- Non-controlling interest 779.6 791.7
Non-recurring items:
Profit/(loss) on sale of investments 92.6 85.7
Profit/(loss) on sale of assets (2.8) 6.3
Restructuring costs (458.6) (334.7)
Share-based payments on BEE transactions - (2,124.8)
- ESOP - (1,227.3)
- South Deep transactions - (824.8)
- GFIMSA transactions - (72.7)
Impairment of investments and assets (71.9) (197.9)
Other (42.2) (23.6)
Total non-recurring items (482.9) (2,589.0)
Taxation 164.0 101.9
Net non-recurring items after taxation (318.9) (2,487.1)
Net earnings/(loss) 7,026.7 1,139.3
Net earnings/(loss) per share (cents) 973 161
Diluted earnings/(loss) per share (cents) 962 159
Headline earnings/(loss) 7,007.6 1,253.9
Headline earnings/(loss) per share (cents) 970 177
Diluted headline earnings/(loss) per share (cents) 959 175
Net earnings excluding gains and losses on foreign
exchange, financial
instruments, non-recurring items and share of
gain/(loss) of associates after
royalties and taxation 7,242.4 3,756.4
Net earnings per share excluding gains and losses on
foreign exchange,
financial instruments, non-recurring items and share
of gain/(loss) of
associates after royalties and taxation (cents) 1,003 530
Gold sold - managed kg 114,979 119,766
Gold price received R/kg 364,216 287,150
Total cash cost R/kg 184,515 165,526
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
December September December
UNITED STATES DOLLARS
2011 2011 2010
Revenue 1,533.5 1,570.3 1,334.2
Operating costs, net (656.1) (766.1) (723.9)
- Operating costs (695.3) (772.5) (728.6)
- Gold inventory change 39.2 6.4 4.7
Operating profit 877.4 804.2 610.3
Amortisation and depreciation (222.2) (195.3) (192.8)
Net operating profit 655.2 608.9 417.5
Net interest paid (7.6) (9.9) (9.3)
Share of gain/(loss) of associates after
taxation 3.7 0.7 0.7
Gain/(loss) on foreign exchange 1.0 10.4 0.1
(Loss)/gain on financial instruments - (0.1) 1.4
Share-based payments (13.6) (17.3) (10.8)
Other 1.0 (10.5) (11.4)
Exploration (37.3) (26.7) (31.9)
Feasibility and evaluation costs (4.1) (6.8) (9.3)
Profit before royalties, taxation and
non-recurring items 598.3 548.7 347.0
Non-recurring items (16.4) (23.9) (326.8)
Profit before royalties and taxation 581.9 524.8 20.2
Royalties (48.0) (43.4) (13.7)
Profit before taxation 533.9 481.4 6.5
Mining and income taxation (187.0) (174.1) (81.2)
- Normal taxation (153.9) (119.7) (97.1)
- Deferred taxation (33.1) (54.4) 15.9
Net profit/(loss) 346.9 307.3 (74.7)
Attributable to:
- Owners of the parents 336.2 293.0 (105.9)
- Non-controlling interest 10.7 14.3 31.2
Non-recurring items:
Profit/(loss) on sale of investments 12.8 - (0.5)
Profit/(loss) on sale of assets 0.1 - 0.3
Restructuring costs (18.1) (23.9) (25.7)
Gain on financial instruments - - -
Share-based payments on BEE transactions - - (297.6)
- ESOP - - (171.9)
- South Deep transactions - - (115.5)
- GFIMSA transactions - - (10.2)
Impairment of investments and assets (9.8) - -
Other (1.4) - (3.3)
Total non-recurring items (16.4) (23.9) (326.8)
Taxation 6.7 7.9 8.4
Net non-recurring items after taxation (9.7) (16.0) (318.4)
Net earnings/(loss) 336.2 293.0 (105.9)
Net earnings/(loss) per share (cents) 47 40 (15)
Diluted earnings/(loss) per share (cents) 46 40 (14)
Headline earnings/(loss) 333.0 293.0 (105.8)
Headline earnings/(loss) per share (cents) 46 40 (15)
Diluted headline earnings/(loss) per share
(cents) 46 40 (15)
Net earnings excluding gains and losses on
foreign exchange, financial
instruments, non-recurring items and share
of gain/(loss) of associates after
royalties and taxation 341.8 301.1 210.8
Net earnings per share excluding gains and
losses on foreign exchange,
financial instruments, non-recurring items
and share of gain/(loss) of
associates after royalties and taxation (cents) 47 42 29
South African rand/United States dollar
conversion rate 8.08 7.05 6.92
South African rand/Australian dollar
conversion rate 8.16 7.44 6.81
Gold sold - managed oz (000) 905 922 979
Gold price received US$/oz 1,677 1,702 1,366
Total cash cost US$/oz 767 851 728
Year ended
December December
UNITED STATES DOLLARS
2011 2010
Revenue 5,800.1 4,704.6
Operating costs, net (2,876.1) (2,721.9)
- Operating costs (2,951.8) (2,743.7)
- Gold inventory change 75.7 21.8
Operating profit 2,924.0 1,982.7
Amortisation and depreciation (783.4) (722.5)
Net operating profit 2,140.6 1,260.2
Net interest paid (28.0) (29.1)
Share of gain/(loss) of associates after taxation 4.0 (17.0)
Gain/(loss) on foreign exchange 9.1 (2.7)
(Loss)/gain on financial instruments 4.4 -
Share-based payments (66.4) (49.4)
Other (32.9) (43.1)
Exploration (115.2) (90.2)
Feasibility and evaluation costs (17.4) (9.3)
Profit before royalties, taxation and non-recurring
items 1,898.2 1,019.4
Non-recurring items (66.9) (360.3)
Profit before royalties and taxation 1,831.3 659.1
Royalties (149.7) (88.1)
Profit before taxation 1,681.6 571.0
Mining and income taxation (600.4) (310.2)
- Normal taxation (436.5) (225.7)
- Deferred taxation (163.9) (84.5)
Net profit/(loss) 1,081.2 260.8
Attributable to:
- Owners of the parents 973.2 152.5
- Non-controlling interest 108.0 108.3
Non-recurring items:
Profit/(loss) on sale of investments 12.8 12.2
Profit/(loss) on sale of assets (0.4) 0.9
Restructuring costs (63.5) (46.8)
Gain on financial instruments - 0.4
Share-based payments on BEE transactions - (297.6)
- ESOP - (171.9)
- South Deep transactions - (115.5)
- GFIMSA transactions - (10.2)
Impairment of investments and assets (10.0) (26.1)
Other (5.8) (3.3)
Total non-recurring items (66.9) (360.3)
Taxation 22.7 14.1
Net non-recurring items after taxation (44.2) (346.2)
Net earnings/(loss) 973.2 152.5
Net earnings/(loss) per share (cents) 135 21
Diluted earnings/(loss) per share (cents) 133 22
Headline earnings/(loss) 970.6 166.7
Headline earnings/(loss) per share (cents) 134 24
Diluted headline earnings/(loss) per share (cents) 133 23
Net earnings excluding gains and losses on foreign
exchange, financial
instruments, non-recurring items and share of
gain/(loss) of associates after
royalties and taxation 1,003.1 517.8
Net earnings per share excluding gains and losses on
foreign exchange,
financial instruments, non-recurring items and share
of gain/(loss) of associates after royalties
and taxation (cents) 139 72
South African rand/United States dollar conversion rate 7.22 7.32
South African rand/Australian dollar conversion rate 7.45 6.71
Gold sold - managed oz (000) 3,697 3,851
Gold price received US$/oz 1,569 1,220
Total cash cost US$/oz 795 703
The reviewed preliminary condensed consolidated financial statements for the
quarter and year ended 31 December 2011 have been prepared by the corporate
accounting staff of Gold Fields Limited headed by Mrs Tzvet Ilarionova, the
Group`s Financial Controller. This process was supervised by Mr Paul Schmidt,
the Group`s Chief Financial Officer. The condensed consolidated preliminary
financial statements for the year ended 31 December 2011 have been reviewed by
the Group`s statutory auditors, KPMG Inc. A copy of their review report is
available for inspection at the company`s registered office.
Statement of comprehensive income
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
December September December
SOUTH AFRICAN RAND 2011 2011 2010
Net profit/(loss) 2,709.2 2,159.0 (561.0)
Other comprehensive income/(expenses), net
of tax 24.9 1,130.1 (114.5)
Marked to market valuation of listed
investments (213.5) (1.5) 180.4
Currency translation adjustments and other 222.9 1,127.0 (275.5)
Share of equity investee`s other
comprehensive income - 0.1 (0.3)
Deferred taxation on marked to market
valuation of listed investments 15.5 4.5 (19.1)
Total comprehensive income/(loss) 2,734.1 3,289.1 (675.5)
Attributable to:
- Owners of the parent 2,613.4 3,185.1 (893.4)
- Non-controlling interest 120.7 104.0 217.9
2,734.1 3,289.1 (675.5)
Year ended
December December
SOUTH AFRICAN RAND 2011 2010
Net profit/(loss) 7,806.3 1,931.0
Other comprehensive income/(expenses), net of tax 1,641.3 (1,120.2)
Marked to market valuation of listed investments (210.7) 107.6
Currency translation adjustments and other 1,832.0 (1,221.8)
Share of equity investee`s other comprehensive income 0.1 4.2
Deferred taxation on marked to market valuation of
listed investments 19.9 (10.2)
Total comprehensive income/(loss) 9,447.6 810.8
Attributable to:
- Owners of the parent 8,651.2 20.3
- Non-controlling interest 796.4 790.5
9,447.6 810.8
Statement of comprehensive income
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
December September December
UNITED STATES DOLLARS 2011 2011 2010
346.9 307.3 (74.7)
Net profit/(loss)
Other comprehensive (expenses)/income, net
of tax (31.2) (814.8) 256.8
Marked to market valuation of listed
investments (29.6) (0.2) 25.4
Currency translation adjustments and other (3.8) (815.2) 234.2
Share of equity investee`s other
comprehensive income - - (0.1)
Deferred taxation on marked to market
valuation of listed investments 2.2 0.6 (2.7)
Total comprehensive income/(loss) 315.7 (507.5) 182.1
Attributable to:
- Owners of the parent 301.2 (498.9) 133.8
- Non-controlling interest 14.5 (8.6) 48.3
315.7 (507.5) 182.1
Year ended
December December
UNITED STATES DOLLARS 2011 2010
1,081.2 260.8
Net profit/(loss)
Other comprehensive (expenses)/income, net of tax (902.6) 640.2
Marked to market valuation of listed investments (29.2) 15.7
Currency translation adjustments and other (876.2) 625.3
Share of equity investee`s other comprehensive income - 0.6
Deferred taxation on marked to market valuation of
listed investments 2.8 (1.4)
Total comprehensive income/(loss) 178.6 901.0
Attributable to:
- Owners of the parent 93.8 742.6
- Non-controlling interest 84.8 158.4
178.6 901.0
Statement of financial position
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
December December
2011 2010
Property, plant and equipment 62,682.8 53,249.8
Goodwill 4,458.9 4,458.9
Non-current assets 1,313.3 1,137.9
Investments 820.6 1,078.5
Deferred taxation 930.4 753.1
Current assets 14,076.0 11,136.1
- Other current assets 8,027.0 5,672.3
- Cash and deposits 6,049.0 5,463.8
Total assets 84,282.0 71,814.3
Shareholders` equity 48,061.5 46,622.5
Deferred taxation 9,777.5 7,814.5
Long-term loans 11,062.3 7,671.9
Environmental rehabilitation provisions 3,190.3 2,271.2
Post-retirement health care provisions 16.8 18.0
Other long-term provisions 110.0 133.2
Current liabilities 12,063.6 7,283.0
- Other current liabilities 7,616.5 5,516.8
- Current portion of long-term loans 4,447.1 1,766.2
Total equity and liabilities 84,282.0 71,814.3
South African rand/US dollar conversion rate
South African rand/Australian dollar conversion rate
Net debt 9,460.4 3,974.3
UNITED STATES DOLLARS
December December
2011 2010
Property, plant and equipment 7,710.1 7,888.9
Goodwill 548.5 660.6
Non-current assets 161.5 168.6
Investments 100.9 159.8
Deferred taxation 114.4 111.6
Current assets 1,731.3 1,649.8
- Other current assets 987.3 840.3
- Cash and deposits 744.0 809.5
Total assets 10,366.7 10,639.3
Shareholders` equity 5,911.6 6,907.1
Deferred taxation 1,202.6 1,157.7
Long-term loans 1,360.7 1,136.6
Environmental rehabilitation provisions 392.4 336.5
Post-retirement health care provisions 2.1 2.7
Other long-term provisions 13.5 19.7
Current liabilities 1,483.8 1,079.0
- Other current liabilities 936.8 817.3
- Current portion of long-term loans 547.0 261.7
Total equity and liabilities 10,366.7 10,639.3
South African rand/US dollar conversion rate 8.13 6.75
South African rand/Australian dollar conversion rate 8.25 6.77
Net debt 1,163.7 588.8
Condensed statement of changes in equity
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
Share capital Other Retained
and premium reserves earnings
Balance as at 31 December 2010 31,560.6 (38.3) 12,019.8
Total comprehensive income - 1,624.5 7,026.7
Profit for the period - - 7,026.7
Other comprehensive income - 1,624.5 -
Dividends paid - - (1,229.4)
Share-based payments - 479.3 -
Loans received from non-controlling interest - - -
Purchase of non-controlling interest - - (4,522.0)
Treasury shares (81.4) - -
Exercise of employee share options 47.1 - -
Balance as at 31 December 2011 31,526.3 2,065.5 13,295.1
Non-controlling Total
interest equity
Balance as at 31 December 2010 3,080.4 46,622.5
Total comprehensive income 796.4 9,447.6
Profit for the period 779.6 7,806.3
Other comprehensive income 16.8 1,641.3
Dividends paid (266.7) (1,496.1)
Share-based payments - 479.3
Loans received from non-controlling interest 225.4 225.4
Purchase of non-controlling interest (2,660.9) (7,182.9)
Treasury shares - (81.4)
Exercise of employee share options - 47.1
Balance as at 31 December 2011 1,174.6 48,061.5
UNITED STATES DOLLARS
Share capital Other Retained
and premium reserves earnings
Balance as at 31 December 2010 4,602.7 207.4 1,640.6
Total comprehensive (expenses)/income - (879.4) 973.2
Profit for the period - - 973.2
Other comprehensive expenses - (879.4) -
Dividends paid - - (174.9)
Share-based payments - 66.4 -
Loans received from non-controlling interest - - -
Purchase of non-controlling interest - - (664.1)
Treasury shares (11.3) - -
Exercise of employee share options 6.5 - -
Balance as at 31 December 2011 4,597.9 (605.6) 1,774.8
Non-controlling Total
interest equity
Balance as at 31 December 2010 456.4 6,907.1
Total comprehensive (expenses)/income 84.8 178.6
Profit for the period 108.0 1,081.2
Other comprehensive expenses (23.2) (902.6)
Dividends paid (36.2) (211.1)
Share-based payments - 66.4
Loans received from non-controlling interest 31.0 31.0
Purchase of non-controlling interest (391.5) (1,055.6)
Treasury shares - (11.3)
Exercise of employee share options - 6.5
Balance as at 31 December 2011 144.5 5,911.6
SOUTH AFRICAN RAND
Share capital Other Retained
and premium reserves earnings
Balance as at 31 December 2009 31,503.5 (1,252.6) 11,727.9
Total comprehensive (expenses)/income - (1,119.0)) 1,139.3
Profit for the period - - 1,139.3
Other comprehensive expenses - (1,119.0) -
Dividends paid - - (847.4)
Share-based payments - 2,333.3 -
Loans repaid to non-controlling interest - - -
Exercise of employee share options 57.1 - -
Balance as at 31 December 2010 31,560.6 (38.3) 12,019.8
Non-controlling Total
interest equity
Balance as at 31 December 2009 2,746.4 44,725.2
Total comprehensive (expenses)/income 790.5 810.8
Profit for the period 791.7 1,931.0
Other comprehensive expenses (1.2) (1,120.2)
Dividends paid (382.3) (1,229.7)
Share-based payments - 2,333.3
Loans repaid to non-controlling interest (74.2) (74.2)
Exercise of employee share options - 57.1
Balance as at 31 December 2010 3,080.4 46,622.5
UNITED STATES DOLLARS
Share capital Other Retained
and premium reserves earnings
Balance as at 31 December 2009 4,594.8 (708.3) 1,600.9
Total comprehensive income - 590.0 152.5
Profit for the period - - 152.5
Other comprehensive income - 590.0 -
Dividends paid - - (112.9)
Share-based payments - 325.8 -
Loans repaid to non-controlling interest - - -
Exercise of employee share options 7.9 - -
Balance as at 31 December 2010 4,602.7 207.5 1,640.5
Non-controlling Total
interest equity
Balance as at 31 December 2009 359.0 5,846.4
Total comprehensive income 158.4 900.9
Profit for the period 108.3 260.8
Other comprehensive income 50.1 640.1
Dividends paid (52.0) (164.9)
Share-based payments - 325.8
Loans repaid to non-controlling interest (9.0) (9.0)
Exercise of employee share options - 7.9
Balance as at 31 December 2010 456.4 6,907.1
Statement of cash flows
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
SOUTH AFRICAN RAND December September December
2011 2011 2010
Cash flows from operating activities 4,952.8 5,056.5 3,889.3
Profit before royalties, tax and
non-recurring items 4,683.2 3,853.5 2,420.4
Non-recurring items (132.5) (167.2) (2,328.9)
Amortisation and depreciation 1,761.3 1,377.4 1,333.5
South Deep BEE dividend paid - - -
Change in working capital (389.3) 372.7 801.9
Royalties and taxation paid (1,000.4) (689.0) (491.2)
Other non-cash items 30.5 309.1 2,153.6
Dividends paid (88.4) (870.5) (148.5)
Owners of the parent - (723.6) -
Non-controlling interest holders (88.4) (146.9) (148.5)
Cash flows from investing activities (3,345.6) (3,161.1) (2,921.4)
Capital expenditure - additions (3,242.2) (2,607.4) (2,414.4)
Capital expenditure - proceeds on disposal 20.7 0.6 8.9
Payment for FSE - (534.6) (371.0)
Payment for Bezant (55.4) - -
La Cima non-controlling interest buy-out (1.5) - -
Ghana non-controlling interest buy-out - - -
South Deep non-controlling interest
buy-out (50.7) - -
Purchase of investments - - (43.0)
Proceeds on disposal of investments 62.1 13.3 2.0
Environmental and post-retirement health
care payments (78.6) (33.0) (103.9)
Cash flows from financing activities 21.3 (1,431.3) 358.0
Loans received 687.0 400.0 6,776.3
Loans repaid (756.1) (1,905.2) (6,482.9)
Non-controlling interest holders` loans
repaid - - (20.5)
Non-controlling interest holders` loans
received 72.9 64.0 62.7
Shares issued 17.5 9.9 22.4
Net cash inflow/(outflow) 1,540.1 (406.4) 1,177.4
Translation adjustment 74.2 496.1 (26.8)
Cash at beginning of period 4,434.7 4,345.0 4,313.2
Cash at end of period 6,049.0 4,434.7 5,463.8
Cash flow from operating activities less
capital expenditure - additions 1,710.6 2,449.1 1,474.9
Year-ended
SOUTH AFRICAN RAND December December
2011 2010
Cash flows from operating activities 15,746.0 12,373.2
Profit before royalties, tax and non-recurring items 13,705.3 7,433.2
Non-recurring items (482.9) (2,589.0)
Amortisation and depreciation 5,655.9 5,283.5
South Deep BEE dividend paid (21.4) -
Change in working capital (259.4) 1,521.5
Royalties and taxation paid (3,336.3) (2,050.7)
Other non-cash items 484.8 2,774.7
Dividends paid (1,530.6) (1,171.1)
Owners of the parent (1,229.4) (847.4)
Non-controlling interest holders (301.2) (323.7)
Cash flows from investing activities (17,958.8) (8,793.8)
Capital expenditure - additions (10,203.2) (8,668.5)
Capital expenditure - proceeds on disposal 38.2 40.8
Payment for FSE (534.6) (371.0)
Payment for Bezant (55.4) -
La Cima non-controlling interest buy-out (2,612.5) -
Ghana non-controlling interest buy-out (4,519.7) -
South Deep non-controlling interest buy-out (50.7) -
Purchase of investments (0.7) (116.4)
Proceeds on disposal of investments 98.9 514.8
Environmental and post-retirement health care payments (119.1) (193.5)
Cash flows from financing activities 3,663.0 1,458.7
Loans received 8,186.1 15,895.5
Loans repaid (4,795.6) (14,419.7)
Non-controlling interest holders` loans repaid - (136.9)
Non-controlling interest holders` loans received 225.4 62.7
Shares issued 47.1 57.1
Net cash inflow/(outflow) (80.4) 3,867.0
Translation adjustment 665.6 (231.4)
Cash at beginning of period 5,463.8 1,828.2
Cash at end of period 6,049.0 5,463.8
Cash flow from operating activities less capital
expenditure - additions 5,542.8 3,704.7
Quarter
December September December
UNITED STATES DOLLARS 2011 2011 2010
Cash flows from operating activities 615.4 716.5 557.0
Profit before royalties, tax and
non-recurring items 598.3 548.7 347.0
Non-recurring items (16.4) (23.9) (326.8)
Amortisation and depreciation 222.2 195.3 192.8
South Deep BEE dividend paid 0.1 - -
Change in working capital (54.6) 54.0 109.1
Royalties and taxation paid (135.8) (102.0) (68.4)
Other non-cash items 1.6 44.4 303.3
Dividends paid (11.0) (122.8) (20.2)
Owners of the parent - (101.7) -
Non-controlling interest holders (11.0) (21.1) (20.2)
Cash flows from investing activities (423.2) (439.0) (420.6)
Capital expenditure - additions (410.2) (370.2) (347.4)
Capital expenditure - proceeds on disposal 2.8 - 1.4
Payment for FSE - (66.0) (54.0)
Payment for Bezant (7.0) - -
La Cima non-controlling interest buy-out (0.2) - -
Ghana non-controlling interest buy-out - - -
South Deep non-controlling interest buy-out (6.3) - -
Purchase of investments - - (6.3)
Proceeds on disposal of investments 8.4 1.9 0.3
Environmental and post-retirement health
care payments (10.7) (4.7) (14.6)
Cash flows from financing activities 1.2 (184.5) 55.4
Loans received 83.0 56.7 986.4
Loans repaid (93.0) (251.7) (940.7)
Non-controlling interest holders` loans
repaid - - (2.9)
Non-controlling interest holders` loans
received 9.0 9.1 9.3
Shares issued 2.2 1.4 3.3
Net cash inflow/(outflow) 182.4 (29.8) 171.6
Translation adjustment 14.1 (53.3) 24.4
Cash at beginning of period 547.5 630.6 613.5
Cash at end of period 744.0 547.5 809.5
Cash flow from operating activities less
capital expenditure - additions 205.2 346.3 209.6
Year-ended
December December
UNITED STATES DOLLARS 2011 2010
Cash flows from operating activities 2,165.0 1,691.9
Profit before royalties, tax and non-recurring items 1,898.2 1,019.4
Non-recurring items (66.9) (360.3)
Amortisation and depreciation 783.4 722.5
South Deep BEE dividend paid (3.0) -
Change in working capital (35.9) 199.3
Royalties and taxation paid (477.9) (274.9)
Other non-cash items 67.1 385.9
Dividends paid (216.8) (156.2)
Owners of the parent (174.9) (112.9)
Non-controlling interest holders (41.9) (43.3)
Cash flows from investing activities (2,539.4) (1,197.1)
Capital expenditure - additions (1,413.2) (1,185.8)
Capital expenditure - proceeds on disposal 5.3 5.8
Payment for FSE (66.0) (54.0)
Payment for Bezant (7.0) -
La Cima non-controlling interest buy-out (382.3) -
Ghana non-controlling interest buy-out (667.0) -
South Deep non-controlling interest buy-out (6.3) -
Purchase of investments (0.1) (16.3)
Proceeds on disposal of investments 13.7 79.7
Environmental and post-retirement health care payments (16.5) (26.5)
Cash flows from financing activities 550.8 214.3
Loans received 1,167.9 2,221.6
Loans repaid (654.6) (2,006.2)
Non-controlling interest holders` loans repaid - (18.3)
Non-controlling interest holders` loans received 31.0 9.3
Shares issued 6.5 7.9
Net cash inflow/(outflow) (40.4) 552.9
Translation adjustment (25.1) 17.6
Cash at beginning of period 809.5 239.0
Cash at end of period 744.0 809.5
Cash flow from operating activities less capital
expenditure - additions 751.8 506.1
Reconciliation of headline earnings with net earnings
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
Quarter
December September December
2011 2011 2010
Net earnings/(loss) 2,604.9 2,054.6 (777.2)
(Profit)/loss on sale of investments (92.6) - 3.5
Taxation effect on sale of investments 19.5 - (0.7)
(Profit)/loss on sale of assets (0.5) (0.4) (2.2)
Taxation effect on sale of assets 0.1 - 0.9
Impairment of investments and assets 70.5 0.2 -
Taxation effect on impairment (20.2) - -
Headline earnings/(loss) 2,581.7 2,054.4 (775.7)
Headline earnings/(loss) per share - cents 357 284 (110)
Based on headline earnings/(loss) as given
above divided by 723,569,224
(September 2011 - 723,159,600 and December
2010 - 715,825,482) being the
weighted average number of ordinary shares
in issue.
Year-ended
December December
2011 2010
Net earnings/(loss) 7,026.7 1,139.3
(Profit)/loss on sale of investments (92.6) (85.7)
Taxation effect on sale of investments 19.5 7.0
(Profit)/loss on sale of assets 2.8 (6.3)
Taxation effect on sale of assets (0.5) 1.7
Impairment of investments and assets 71.9 197.9
Taxation effect on impairment (20.2) -
Headline earnings/(loss) 7,007.6 1,253.9
Headline earnings/(loss) per share - cents 970 177
Based on headline earnings/(loss) as given above divided
by 723,569,224 (September 2011 - 723,159,600
and December 2010 - 715,825,482) being the
weighted average number of ordinary shares in issue.
UNITED STATES DOLLARS
Quarter
December September December
2011 2011 2010
Net earnings/(loss) 336.2 293.0 (105.9)
(Profit)/loss on sale of investments (12.8) - 0.5
Taxation effect on sale of investments 2.7 - (0.1)
(Profit)/loss on sale of assets (0.1) - (0.3)
Taxation effect on sale of assets - - -
Impairment of investments and assets 9.8 - -
Taxation effect on impairment (2.8) - -
Headline earnings/(loss) 333.0 293.0 (105.8)
Headline earnings/(loss) per share - cents 46 40 (15)
Based on headline earnings(loss) as given
above divided by 723,569,224
(September 2011 - 723,159,600 and December
2010 - 715,825,482) being the
weighted average number of ordinary shares
in issue.
Year-ended
December December
2011 2010
Net earnings/(loss) 973.2 152.5
(Profit)/loss on sale of investments (12.8) (12.2)
Taxation effect on sale of investments 2.7 1.2
(Profit)/loss on sale of assets 0.4 (0.9)
Taxation effect on sale of assets (0.1) -
Impairment of investments and assets 10.0 26.1
Taxation effect on impairment (2.8) -
Headline earnings/(loss) 970.6 166.7
Headline earnings/(loss) per share - cents 134 24
Based on headline earnings(loss) as given above divided
by 723,569,224
(September 2011 - 723,159,600 and December 2010 -
715,825,482) being the
weighted average number of ordinary shares in issue.
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.
South Africa forward cover contracts*
Outstanding at the end of December 2011 was the following contract:
- AUD/ZAR - AUD2.7 million in total, with a positive marked to market value of
US$0.1 million.
*Do not qualify for hedge accounting and will be accounted for as derivative
financial instruments in the income statement.
Debt maturity ladder
Figures are in millions unless otherwise stated
31 Dec 2012 31 Dec 2013 31 Dec 2014
Committed loan facilities
(including US$ bond and preference
shares)
Rand million 1,000.00 500.0 -
US dollar million 557.0 48.0 75.0
Dollar debt translated to rand 4,528.4 390.2 609.8
Total (R`m) 5,528.4 890.2 609.8
Utilisation - Committed loan
facilities (including US$ bond and
preference shares)
Rand million - - -
US dollar million 547.0 48.0 75.0
Dollar debt translated to rand 4,447.1 390.2 609.8
Total (R`m) 4,447.1 390.2 609.8
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)
1 Jan 2015
to
31 Dec 2020 Total
Committed loan facilities (including US$ bond and
preference shares)
Rand million 2,000.0 3,500.0
US dollar million 2,017.7 2,697.7
Dollar debt translated to rand 16,403.7 21,932.1
Total (R`m) 18,403.7 25,432.1
Utilisation - Committed loan facilities (including
US$ bond and
preference shares)
Rand million - -
US dollar million 1,237.7 1,907.7
Dollar debt translated to rand 10,062.3 15,509.4
Total (R`m) 10,062.3 15,509.4
Long-term loans per balance sheet (R`m) 11,062.3
Current portion of long-term loans per balance sheet
(R`m) 4,447.1
Total loans per balance sheet (R`m) 15,509.4
Exchange rate: US$1 = R8.13 being the closing rate at the end of the December
2011 quarter.
Operating and financial results
SOUTH AFRICAN RAND
South Africa Region
Total
Mine
Operations Total KDC
Operating
Results
Ore
milled/treated (000
tonnes) December 2011 15,026 4,333 2,844
September 2011 14,770 4,327 2,805
Financial year ended 59,441 17,088 10,831
Yield (grams
per tonne) December 2011 1.9 3.1 3.1
September 2011 1.9 3.1 3.1
Financial year ended 1.9 3.1 3.2
Gold produced
(kilograms) December 2011 28,195 13,500 8,890
September 2011 28,781 13,323 8,684
Financial year ended 114,979 53,496 34,218
Gold sold
(kilograms) December 2011 28,157 13,500 8,890
September 2011 28,675 13,323 8,684
Financial year ended 114,978 53,496 34,218
Gold price
received
(Rand per
kilogram) December 2011 435,661 438,044 438,009
September 2011 385,684 392,584 389,717
Financial year ended 364,216 368,250 368,309
Total cash
cost (Rand
per kilogram) December 2011 199,155 229,148 218,526
September 2011 192,997 235,780 227,395
Financial year ended 184,515 224,815 219,642
Notional cash
expenditure
(Rand per
kilogram) December 2011 306,139 331,541 289,078
September 2011 272,555 330,023 295,164
Financial year ended 267,663 315,788 285,017
Operating
costs (Rand
per tonne) December 2011 376 695 655
September 2011 369 724 696
Financial year ended 359 702 688
Financial
Results (Rand
million)
Revenue December 2011 12,266.9 5,913.6 3,893.9
September 2011 11,059.5 5,230.4 3,384.3
Financial year ended 41,876.8 19,699.9 12,602.8
Net operating
costs December 2011 (5,358.6) (3,011.8) (1,863.7)
September 2011 (5,404.1) (3,131.1) (1,952.4)
Financial year ended (20,765.3) (11,999.6) (7,452.4)
- Operating
costs December 2011 (5,651.9) (3,011.8) (1,863.7)
September 2011 (5,450.4) (3,131.1) (1,952.4)
Financial year ended (21,312.0) (11,999.6) (7,452.4)
- Gold
inventory
change December 2011 293.3 - -
September 2011 46.3 - -
Financial year ended 546.7 - -
Operating
profit December 2011 6,908.3 2,901.8 2,030.2
September 2011 5,655.4 2,099.3 1,431.9
Financial year ended 21,111.5 7,700.3 5,150.4
Amortisation
of mining
assets December 2011 (1,724.4) (736.8) (439.1)
September 2011 (1,339.6) (679.8) (410.1)
Financial year ended (5,508.2) (2,731.4) (1,663.3)
Net operating
profit December 2011 5,183.9 2,165.0 1,591.1
September 2011 4,315.8 1,419.5 1,021.8
Financial year ended 15,603.3 4,968.9 3,487.1
Other expenses December 2011 (120.6) (77.0) (42.7)
September 2011 (175.4) (67.9) (37.9)
Financial year ended (579.8) (276.0) (160.3)
Profit before
royalties and
taxation December 2011 5,063.3 2,088.0 1,548.4
September 2011 4,140.4 1,351.6 983.9
Financial year ended 15,023.5 4,692.9 3,326.8
Royalties,
mining and
income
taxation December 2011 (1,848.5) (782.0) (606.1)
September 2011 (1,525.2) (459.8) (323.7)
Financial year ended (5,332.0) (1,669.4) (1,181.6)
- Normal
taxation December 2011 (904.7) (424.1) (423.0)
September 2011 (825.4) (169.6) (169.2)
Financial year ended (2,750.7) (640.9) (638.7)
- Royalties December 2011 (375.3) (146.6) (123.6)
September 2011 (304.7) (80.7) (71.5)
Financial year ended (1,081.0) (304.9) (256.5)
- Deferred
taxation December 2011 (568.5) (211.3) (59.5)
September 2011 (395.1) (209.5) (83.0)
Financial year ended (1,500.3) (723.6) (286.4)
Profit before
non-recurring
items December 2011 3,214.8 1,306.0 942.3
September 2011 2,615.2 891.8 660.2
Financial year ended 9,691.5 3,023.5 2,145.2
Non-recurring
items December 2011 (180.0) (125.7) (111.8)
September 2011 (128.4) (111.3) (90.7)
Financial year ended (489.7) (319.6) (245.2)
Net profit December 2011 3,034.8 1,180.3 830.5
September 2011 2,486.8 780.5 569.5
Financial year ended 9,201.8 2,703.9 1,900.0
December 2011 3,133.4 1,261.1 902.5
Net profit
excluding
gains and
losses on
foreign
exchange,
financial
instruments
and
non-recurring September 2011 2,581.2 852.4 628.4
items Financial year ended 9,541.6 2,909.8 2,058.7
Capital
Expenditure December 2011 (2,979.7) (1,464.0) (706.2)
September 2011 (2,394.0) (1,265.8) (610.8)
Financial year ended (9,463.6) (4,893.8) (2,300.3)
South
Beatrix Deep
Operating Results
Ore milled/treated (000
tonnes) December 2011 940 549
September 2011 899 623
Financial year ended 3,817 2,440
Yield (grams per tonne) December 2011 3.0 3.3
September 2011 2.9 3.2
Financial year ended 2.8 3.5
Gold produced (kilograms) December 2011 2,789 1,821
September 2011 2,636 2,003
Financial year ended 10,787 8,491
Gold sold (kilograms) December 2011 2,789 1,821
September 2011 2,636 2,003
Financial year ended 10,787 8,491
Gold price received (Rand per
kilogram) December 2011 437,863 438,495
September 2011 400,493 394,608
Financial year ended 371,772 363,538
Total cash cost (Rand per
kilogram) December 2011 220,222 294,673
September 2011 236,002 271,842
Financial year ended 222,073 249,146
Notional cash expenditure
(Rand per kilogram) December 2011 271,172 631,301
September 2011 300,228 520,369
Financial year ended 279,957 485,314
Operating costs (Rand per
tonne) December 2011 645 988
September 2011 699 883
Financial year ended 631 876
Financial Results (Rand
million)
Revenue December 2011 1,221.2 798.5
September 2011 1,055.7 790.4
Financial year ended 4,010.3 3,086.8
Net operating costs December 2011 (605.9) (542.2)
September 2011 (628.3) (550.4)
Financial year ended (2,408.8) (2,138.4)
- Operating costs December 2011 (605.9) (542.2)
September 2011 (628.3) (550.4)
Financial year ended (2,408.8) (2,138.4)
- Gold inventory change December 2011 - -
September 2011 - -
Financial year ended - -
Operating profit December 2011 615.3 256.3
September 2011 427.4 240.0
Financial year ended 1,601.5 948.4
Amortisation of mining assets December 2011 (150.4) (147.3)
September 2011 (127.4) (142.3)
Financial year ended (514.4) (553.7)
Net operating profit December 2011 464.9 109.0
September 2011 300.0 97.7
Financial year ended 1,087.1 394.7
Other expenses December 2011 (13.1) (21.2)
September 2011 (11.5) (18.5)
Financial year ended (46.2) (69.5)
Profit before royalties and
taxation December 2011 451.8 87.8
September 2011 288.5 79.2
Financial year ended 1,040.9 325.2
Royalties, mining and income
taxation December 2011 (133.5) (42.4)
September 2011 (103.6) (32.5)
Financial year ended (348.6) (139.2)
- Normal taxation December 2011 (1.1) -
September 2011 (0.4) -
Financial year ended (2.2) -
- Royalties December 2011 (19.0) (4.0)
September 2011 (5.3) (3.9)
Financial year ended (33.0) (15.4)
- Deferred taxation December 2011 (113.4) (38.4)
September 2011 (97.9) (28.6)
Financial year ended (313.4) (123.8)
Profit before non-recurring
items December 2011 318.3 45.4
September 2011 184.9 46.7
Financial year ended 692.3 186.0
Non-recurring items December 2011 (4.6) (9.3)
September 2011 (12.0) (8.6)
Financial year ended (34.8) (39.6)
Net profit December 2011 313.7 36.1
September 2011 172.9 38.1
Financial year ended 657.5 146.4
December 2011 316.7 41.9
Net profit excluding gains
and losses on foreign
exchange, financial
instruments and non-recurring September 2011 180.6 43.4
items Financial year ended 680.1 171.0
Capital Expenditure December 2011 (150.4) (607.4)
September 2011 (163.1) (491.9)
Financial year ended (611.1) (1,982.4)
Operating and financial results
SOUTH AFRICAN RAND West Africa Region
Ghana
Total Tarkwa Damang
Operating
Results
Ore
milled/treated
(000 tonnes) December 2011 7,047 5,855 1,192
September 2011 6,825 5,597 1,228
Financial year ended 28,080 23,138 4,942
Yield (grams
per tonne) December 2011 1.0 0.9 1.3
September 2011 1.1 1.0 1.4
Financial year ended 1.0 1.0 1.4
Gold produced
(kilograms) December 2011 6,843 5,300 1,543
September 2011 7,290 5,600 1,690
Financial year ended 29,084 22,312 6,772
Gold sold
(kilograms) December 2011 6,843 5,300 1,543
September 2011 7,290 5,600 1,690
Financial year ended 29,084 22,312 6,772
Gold price
received (Rand
per kilogram) December 2011 432,705 431,774 435,904
September 2011 387,915 387,732 388,521
Financial year ended 363,361 363,365 363,349
Total cash cost
(Rand per
kilogram) December 2011 171,065 160,642 206,870
September 2011 139,767 137,446 147,456
Financial year ended 136,879 129,011 162,803
Notional cash expenditure
(Rand per
kilogram) December 2011 278,167 265,396 322,035
September 2011 203,882 197,036 226,568
Financial year ended 219,763 212,043 245,201
Operating costs
(Rand per
tonne) December 2011 170 155 243
September 2011 148 138 195
Financial year ended 149 136 208
Financial
Results (Rand million)
Revenue December 2011 2,961.0 2,288.4 672.6
September 2011 2,827.9 2,171.3 656.6
Financial year ended 10,568.0 8,107.4 2,460.6
Net operating
costs December 2011 (1,087.3) (792.8) (294.5)
September 2011 (931.1) (716.8) (214.3)
Financial year ended (3,694.2) (2,681.6) (1,012.6)
- Operating
costs December 2011 (1,197.9) (908.0) (289.9)
September 2011 (1,010.3) (771.4) (238.9)
Financial year ended (4,176.6) (3,150.6) (1,026.0)
- Gold
inventory
change December 2011 110.6 115.2 (4.6)
September 2011 79.2 54.6 24.6
Financial year ended 482.4 469.0 13.4
Operating profit December 2011 1,873.7 1,495.6 378.1
September 2011 1,896.8 1,454.5 442.3
Financial year ended 6,873.8 5,425.8 1,448.0
Amortisation of
mining assets December 2011 (266.5) (213.3) (53.2)
September 2011 (249.3) (188.8) (60.5)
Financial year ended (950.0) (757.3) (192.7)
Net operating
profit December 2011 1,607.2 1,282.3 324.9
September 2011 1,647.5 1,265.7 381.8
Financial year ended 5,923.8 4,668.5 1,255.3
Other expenses December 2011 (35.2) (27.2) (8.0)
September 2011 (39.6) (27.2) (12.4)
Financial year ended (161.7) (115.8) (45.9)
Profit before
royalties and
taxation December 2011 1,572.0 1,255.1 316.9
September 2011 1,607.9 1,238.5 369.4
Financial year ended 5,762.1 4,552.7 1,209.4
Royalties,
mining and
income taxation December 2011 (569.6) (455.2) (114.4)
September 2011 (594.6) (464.5) (130.1)
Financial year ended (2,036.9) (1,614.8) (422.1)
- Normal
taxation December 2011 (294.8) (238.7) (56.1)
September 2011 (428.4) (348.0) (80.4)
Financial year ended (1,303.1) (1,088.0) (215.1)
- Royalties December 2011 (146.1) (112.9) (33.2)
September 2011 (141.1) (108.3) (32.8)
Financial year ended (479.8) (368.2) (111.6)
- Deferred
taxation December 2011 (128.7) (103.6) (25.1)
September 2011 (25.1) (8.2) (16.9)
Financial year ended (254.0) (158.6) (95.4
Profit before
non-recurring
items December 2011 1,002.4 799.9 202.5
September 2011 1,013.3 774.0 239.3
Financial year ended 3,725.2 2,937.9 787.3
Non-recurring
items December 2011 (16.6) (2.8) (13.8)
September 2011 (16.6) (4.3) (12.3)
Financial year ended (101.5) (39.5) (62.0
Net profit December 2011 985.8 797.1 188.7
September 2011 996.7 769.7 227.0
Financial year ended 3,623.7 2,898.4 725.3
December 2011 1,009.4 806.5 202.9
Net profit
excluding gains
and losses on
foreign
exchange,
financial
instruments September 2011 1,011.8 775.1 236.7
and
non-recurring
items Financial year ended 3,728.7 2,945.8 782.9
Capital
Expenditure December 2011 (705.6) (498.6) (207.0)
September 2011 (476.0) (332.0) (144.0)
Financial year ended (2,215.0) (1,580.5) (634.5)
SOUTH AFRICAN RAND South
America
Region
Peru
Cerro
Corona Total
Operating Results
Ore milled/treated (000
tonnes) December 2011 1,620 2,026
September 2011 1,674 1,944
Financial year ended 6,593 7,680
Yield (grams per tonne) December 2011 1.5 2.6
September 2011 1.7 2.7
Financial year ended 1.8 2.7
Gold produced (kilograms) December 2011 2,489 5,363
September 2011 2,921 5,247
Financial year ended 11,915 20,484
Gold sold (kilograms) December 2011 2,451 5,363
September 2011 2,815 5,247
Financial year ended 11,914 20,484
Gold price received (Rand
per kilogram) December 2011 428,437 436,733
September 2011 335,737 391,862
Financial year ended 339,693 369,156
Total cash cost (Rand per
kilogram) December 2011 126,928 192,504
September 2011 111,865 201,849
Financial year ended 101,536 195,167
Notional cash expenditure
(Rand per kilogram) December 2011 186,902 333,228
September 2011 139,370 296,188
Financial year ended 137,440 285,735
Operating costs (Rand per tonne) December 2011 188 562
September 2011 173 524
Financial year ended 172 521
Financial Results (Rand million)
Revenue December 2011 1,050.1 2,342.2
September 2011 945.1 2,056.1
Financial year ended 4,047.1 7,561.8
Net operating costs December 2011 (285.2) (974.3)
September 2011 (289.1) (1,052.8)
Financial year ended (1,137.6) (3,933.9)
- Operating costs December 2011 (304.2) (1,138.0)
September 2011 (289.6) (1,019.4)
Financial year ended (1,136.6) (3,999.2)
- Gold inventory change December 2011 19.0 163.7
September 2011 0.5 (33.4)
Financial year ended (1.0) 65.3
Operating profit December 2011 764.9 1,367.9
September 2011 656.0 1,003.3
Financial year ended 2,909.5 3,627.9
Amortisation of mining assets December 2011 (120.2) (600.9)
September 2011 (102.6) (307.9)
Financial year ended (422.8) (1,404.0)
Net operating profit December 2011 644.7 767.0
September 2011 553.4 695.4
Financial year ended 2,486.7 2,223.9
Other expenses December 2011 25.8 (34.2)
September 2011 (49.9) (18.0)
Financial year ended (69.7) (72.4)
Profit before royalties and
taxation December 2011 670.5 732.8
September 2011 503.5 677.4
Financial year ended 2,417.0 2,151.5
Royalties, mining and income
taxation December 2011 (223.6) (273.3)
September 2011 (229.6) (241.2)
Financial year ended (837.9) (787.8)
- Normal taxation December 2011 (185.8) -
September 2011 (227.4) -
Financial year ended (806.7) -
- Royalties December 2011 (25.1) (57.5)
September 2011 (30.7) (52.2)
Financial year ended (106.1) (190.2)
- Deferred taxation December 2011 (12.7) (215.8)
September 2011 28.5 (189.0)
Financial year ended) 74.9 (597.6)
Profit before non-recurring
items December 2011 446.9 459.5
September 2011 273.9 436.2
Financial year ended 1,579.1 1,363.7
Non-recurring items December 2011 (72.5) 34.8
September 2011 - (0.5)
Financial year ended) (74.0) 5.4
Net profit December 2011 374.4 494.3
September 2011 273.9 435.7
Financial year ended 1,505.1 1,369.1
December 2011 376.9 486.0
Net profit excluding gains
and losses on
foreign exchange, financial
instruments September 2011 277.3 439.7
and non-recurring items Financial year ended 1,512.1 1,391.0
Capital Expenditure December 2011 (161.0) (649.1)
September 2011 (117.5) (534.7)
Financial year ended (501.0) (1,853.8)
SOUTH AFRICAN RAND Australasia Region #
Australia
St Ives Agnew
Operating Results
Ore milled/treated (000
tonnes) December 2011 1,768 258
September 2011 1,682 262
Financial year ended 6,745 935
Yield (grams per tonne) December 2011 2.1 6.3
September 2011 2.1 6.4
Financial year ended 2.1 6.5
Gold produced (kilograms) December 2011 3,746 1,617
September 2011 3,577 1,670
Financial year ended 14,449 6,035
Gold sold (kilograms) December 2011 3,746 1,617
September 2011 3,577 1,670
Financial year ended 14,449 6,035
Gold price received (Rand per
kilogram) December 2011 436,412 437,477
September 2011 388,762 398,503
Financial year ended 366,890 374,582
Total cash cost (Rand per
kilogram) December 2011 201,895 170,748
September 2011 221,638 159,461
Financial year ended 209,170 161,640
Notional cash expenditure
(Rand per kilogram) December 2011 355,419 281,818
September 2011 317,585 250,359
Financial year ended 298,865 254,300
Operating costs (Rand per
tonne) December 2011 474 1,166
September 2011 447 1,020
Financial year ended 445 1,070
Financial Results (Rand million)
Revenue December 2011 1,634.8 707.4
September 2011 1,390.6 665.5
Financial year ended 5,301.2 2,260.6
Net operating costs December 2011 (710.5) (263.8)
September 2011 (791.2) (261.6)
Financial year ended (2,977.5) (956.4)
- Operating costs December 2011 (837.2) (300.8)
September 2011 (752.1) (267.3)
Financial year ended (2,999.2) (1,000.0)
- Gold inventory change December 2011 126.7 37.0
September 2011 (39.1) 5.7
Financial year ended 21.7 43.6
Operating profit December 2011 924.3 443.6
September 2011 599.4 403.9
Financial year ended 2,323.7 1,304.2
Amortisation of mining assets December 2011
September 2011
Financial year ended
Net operating profit December 2011
September 2011
Financial year ended
Other expenses December 2011
September 2011
Financial year ended
Profit before royalties and
taxation December 2011
September 2011
Financial year ended
Royalties, mining and income
taxation December 2011
September 2011
Financial year ended
- Normal taxation December 2011
September 2011
Financial year ended
- Royalties December 2011
September 2011
Financial year ended
- Deferred taxation December 2011
September 2011
Financial year ended
Profit before non-recurring
items December 2011
September 2011
Financial year ended
Non-recurring items December 2011
September 2011
Financial year ended
Net profit December 2011
September 2011
Financial year ended
December 2011
Net profit excluding gains
and losses on
foreign exchange, financial
instruments September 2011
and non-recurring items Financial year ended
Capital Expenditure December 2011 (494.2) (154.9)
September 2011 (383.9) (150.8)
Financial year ended (1,319.1) (534.7)
# 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
Operations Total KDC
Operating
Results
Ore
milled/treated
(000 tonnes) December 2011 15,026 4,333 2,844
September 2011 14,770 4,327 2,805
Financial year ended 59,441 17,088 10,831
Yield (ounces
per tonne) December 2011 0.060 0.100 0.100
September 2011 0.063 0.099 0.100
Financial year ended 0.062 0.101 0.102
Gold produced
(000 ounces) December 2011 906.5 434.0 285.8
September 2011 925.3 428.3 279.2
Financial year ended 3,696.7 1,720.0 1,100.2
Gold sold (000
ounces) December 2011 905.3 434.0 285.8
September 2011 921.9 428.3 279.2
Financial year ended 3,696.6 1,720.0 1,100.2
Gold price
received
(dollars per
ounce) December 2011 1,677 1,686 1,686
September 2011 1,702 1,732 1,719
Financial year ended 1,569 1,586 1,587
Total cash
cost (dollars
per ounce) December 2011 767 882 841
September 2011 851 1,040 1,003
Financial year ended 795 968 946
Notional cash
expenditure
(dollars per
ounce) December 2011 1,178 1,276 1,113
September 2011 1,202 1,456 1,302
Financial year ended 1,153 1,360 1,228
Operating
costs (dollars
per tonne) December 2011 47 86 81
September 2011 52 103 99
Financial year ended 50 97 95
Financial
Results ($
million)
Revenue December 2011 1,533.5 742.1 490.7
September 2011 1,570.3 742.9 480.9
Financial year ended 5,800.1 2,728.5 1,745.5
Net operating
costs December 2011 (656.1) (366.9) (226.9)
September 2011 (766.1) (443.8) (276.7)
Financial year ended (2,876.1) (1,662.0) (1,032.2)
- Operating
costs December 2011 (695.3) (366.9) (226.9)
September 2011 (772.5) (443.8) (276.7)
Financial year ended (2,951.8) (1,662.0) (1,032.2)
- Gold
inventory
change December 2011 39.2 - -
September 2011 6.4 - -
Financial year ended 75.7 - -
Operating
profit December 2011 877.4 375.2 263.9
September 2011 804.2 299.1 204.2
Financial year ended 2,924.0 1,066.5 713.4
Amortisation
of mining
assets December 2011 (217.7) (90.9) (54.0)
September 2011 (189.9) (96.3) (58.1)
Financial year ended (762.9) (378.3) (230.4)
Net operating
profit December 2011 659.7 284.3 209.9
September 2011 614.3 202.8 146.1
Financial year ended 2,161.1 688.2 483.0
Other expenses December 2011 (14.0) (9.5) (5.3)
September 2011 (24.9) (9.6) (5.3)
Financial year ended (80.3) (38.2) (22.2)
Profit before
royalties and
taxation December 2011 645.7 274.8 204.6
September 2011 589.4 193.2 140.8
Financial year ended 2,080.8 650.0 460.8
Royalties,
mining and
income
taxation December 2011 (236.6) (103.4) (80.8)
September 2011 (217.3) (65.9) (46.5)
Financial year ended (738.5) (231.2) (163.7)
- Normal
taxation December 2011 (114.9) (57.5) (57.4)
September 2011 (117.8) (24.5) (24.5)
Financial year ended (381.0) (88.8) (88.5)
- Royalties December 2011 (48.1) (19.5) (16.4)
September 2011 (43.4) (11.5) (10.2)
Financial year ended (149.7) (42.2) (35.5)
- Deferred
taxation December 2011 (73.6) (26.4) (7.0)
September 2011 (56.2) (29.8) (11.8)
Financial year ended (207.8) (100.2) (39.7)
Profit before
non-recurring
items December 2011 409.1 171.4 123.8
September 2011 372.0 127.4 94.2
Financial year ended 1,342.3 418.8 297.1
Non-recurring
items December 2011 (23.2) (16.3) (14.8)
September 2011 (18.4) (16.0) (13.0)
Financial year ended (67.8) (44.3) (34.0)
Net profit December 2011 385.9 155.1 109.1
September 2011 353.6 111.3 81.2
Financial year ended 1,274.5 374.5 263.2
December 2011 398.1 165.4 118.5
Net profit
excluding
gains and
losses on
foreign
exchange,
financial
instruments and
non-recurring September 2011 367.1 121.8 89.9
items Financial year ended 1,321.6 403.0 285.1
Capital
Expenditure December 2011 (376.3) (183.6) (88.9)
September 2011 (339.9) (179.7) (86.8)
Financial year ended (1,310.6) (677.8) (318.6)
South
Beatrix Deep
Operating Results
Ore milled/treated (000 tonnes) December 2011 940 549
September 2011 899 623
Financial year ended 3,817 2,440
Yield (ounces per tonne) December 2011 0.095 0.107
September 2011 0.094 0.103
Financial year ended 0.091 0.112
Gold produced (000 ounces) December 2011 89.7 58.5
September 2011 84.7 64.4
Financial year ended 346.8 273.0
Gold sold (000 ounces) December 2011 89.7 58.5
September 2011 84.7 64.4
Financial year ended 346.8 273.0
Gold price received (dollars per
ounce) December 2011 1,686 1,688
September 2011 1,767 1,741
Financial year ended 1,602 1,566
Total cash cost (dollars per
ounce) December 2011 848 1,134
September 2011 1,041 1,199
Financial year ended 957 1,073
Notional cash expenditure
(dollars per ounce) December 2011 1,044 2,430
September 2011 1,325 2,296
Financial year ended 1,206 2,091
Operating costs (dollars per
tonne) December 2011 80 122
September 2011 99 125
Financial year ended 87 121
Financial Results ($ million)
Revenue December 2011 153.5 97.8
September 2011 150.0 112.0
Financial year ended 555.4 427.5
Net operating costs December 2011 (73.8) (66.2)
September 2011 (89.1) (78.0)
Financial year ended (333.6) (296.2)
- Operating costs December 2011 (73.8) (66.2)
September 2011 (89.1) (78.0)
Financial year ended (333.6) (296.2)
- Gold inventory change December 2011 - -
September 2011 - -
Financial year ended - -
Operating profit December 2011 79.7 31.7
September 2011 60.9 34.0
Financial year ended 221.8 131.4
Amortisation of mining assets December 2011 (18.8) (18.1)
September 2011 (18.0) (20.2)
Financial year ended (71.2) (76.7)
Net operating profit December 2011 60.9 13.6
September 2011 42.9 13.9
Financial year ended 150.6 54.7
Other expenses December 2011 (1.6) (2.6)
September 2011 (1.7) (2.6)
Financial year ended (6.4) (9.6)
Profit before royalties and
taxation December 2011 59.3 10.9
September 2011 41.2 11.3
Financial year ended 144.2 45.0
Royalties, mining and income
taxation December 2011 (17.3) (5.4)
September 2011 (14.8) (4.5)
Financial year ended (48.3) (19.3)
- Normal taxation December 2011 (0.1) -
September 2011 (0.1) -
Financial year ended (0.3) -
- Royalties December 2011 (2.6) (0.5)
September 2011 (0.7) (0.5)
Financial year ended (4.6) (2.1)
- Deferred taxation December 2011 (14.6) (4.8)
September 2011 (14.0) (4.0)
Financial year ended (43.4) (17.1)
Profit before non-recurring items December 2011 42.0 5.6
September 2011 26.4 6.8
Financial year ended 95.9 25.8
Non-recurring items December 2011 (0.4) (1.1)
September 2011 (1.8) (1.3)
Financial year ended (4.8) (5.5)
Net profit December 2011 41.6 4.5
September 2011 24.6 5.5
Financial year ended 91.1 20.3
December 2011 41.8 5.1
Net profit excluding gains and
losses on foreign
exchange, financial instruments
and non-recurring September 2011 25.8 6.1
items Financial year ended 94.2 23.7
Capital Expenditure December 2011 (18.2) (76.5)
September 2011 (23.1) (69.8)
Financial year ended (84.6) (274.6)
Average exchange rates were US$1 = R8.08 and US$1 = R7.05 for the December
2011 and September 2011 quarters respectively.
The Australian dollar exchange rates were A$1 = R8.16 and A$1 = R7.44 for the
December 2011 and the September 2011 quarters respectively.
Operating and financial results
UNITED STATES DOLLARS West Africa Region
Ghana
Total Tarkwa Damang
Operating Results
Ore milled/treated December 2011 7,047 5,855 1,192
(000 tonnes) September 2011 6,825 5,597 1,228
Financial year ended 28,080 23,138 4,942
Yield (ounces per tonne) December 2011 0.031 0.029 0.042
September 2011 0.034 0.032 0.044
Financial year ended 0.033 0.031 0.044
Gold produced (000
ounces) December 2011 220.0 170.4 49.6
September 2011 234.4 180.0 54.3
Financial year ended 935.0 717.3 217.7
Gold sold (000 ounces) December 2011 220.0 170.4 49.6
September 2011 234.4 180.0 54.3
Financial year ended 935.0 717.3 217.7
Gold price received December 2011 1,666 1,662 1,678
(dollars per ounce) September 2011 1,711 1,711 1,714
Financial year ended 1,565 1,565 1,565
Total cash cost December 2011 659 618 796
(dollars per ounce) September 2011 617 606 651
Financial year ended 590 556 701
Notional cash
expenditure December 2011 1,071 1,022 1,240
(dollars per ounce) September 2011 899 869 1,000
Financial year ended 947 913 1,056
Operating costs December 2011 21 19 30
(dollars per tonne) September 2011 21 20 28
Financial year ended 21 19 29
Financial Results ($million)
Revenue December 2011 367.6 284.4 83.2
September 2011 401.5 308.3 93.2
Financial year ended 1,463.7 1,122.9 340.8
Net operating costs December 2011 (136.1) (99.3) (36.7)
September 2011 (132.1) (101.9) (30.3)
Financial year ended (511.7) (371.4) (140.2)
- Operating costs December 2011 (149.3) (113.3) (36.0)
September 2011 (143.1) (109.3) (33.8)
Financial year ended (578.5) (436.4) (142.1)
- Gold inventory
change December 2011 13.2 14.0 (0.7)
September 2011 11.0 7.5 3.5
Financial year ended 66.8 65.0 1.9
Operating profit December 2011 231.5 185.1 46.5
September 2011 269.4 206.4 63.0
Financial year ended 952.0 751.5 200.6
Amortisation of
mining assets December 2011 (33.1) (26.5) (6.6)
September 2011 (35.3) (26.7) (8.6)
Financial year ended (131.6) (104.9) (26.7)
Net operating profit December 2011 198.5 158.6 39.9
September 2011 234.1 179.7 54.4
Financial year ended 820.5 646.6 173.9
Other expenses December 2011 (4.1) (3.2) (0.9)
September 2011 (5.6) (3.9) (1.8)
Financial year ended (22.4) (16.0) (6.4)
Profit before
royalties and
December 2011 194.4 155.4 39.0
taxation September 2011 228.5 175.9 52.6
Financial year ended 798.1 630.6 167.5
December 2011 (70.7) (56.6) (14.2)
Royalties, mining and
income
taxation September 2011 (84.5) (66.0) (18.5)
Financial year ended (282.1) (223.7) (58.5)
- Normal taxation December 2011 (35.2) (28.3) (6.9)
September 2011 (61.0) (49.5) (11.5)
Financial year ended (180.5) (150.7) (29.8)
- Royalties December 2011 (18.4) (14.2) (4.2)
September 2011 (20.1) (15.4) (4.7)
Financial year ended (66.5) (51.0) (15.5)
- Deferred taxation December 2011 (17.2) (14.1) (3.1)
September 2011 (3.5) (1.1) (2.3)
Financial year ended (35.2) (22.0) (13.2)
Profit before December 2011 123.7 98.8 24.8
non-recurring items September 2011 143.9 109.9 34.1
Financial year ended 516.0 406.9 109.0
Non-recurring items December 2011 (1.9) (0.2) (1.7)
September 2011 (2.3) (0.6) (1.7)
Financial year ended (14.1) (5.5) (8.6)
Net profit December 2011 121.8 98.6 23.2
September 2011 141.6 109.3 32.3
Financial year ended 501.9 401.4 100.5
Net profit excluding
gains and December 2011 124.5 99.7 24.8
losses on foreign
exchange, September 2011 143.6 110.0 33.7
financial instruments
and
non-recurring items Financial year ended 516.4 408.0 108.4
Capital Expenditure December 2011 (89.2) (63.0) (26.2)
September 2011 (67.3) (46.9) (20.4)
Financial year ended (306.7) (218.9) (87.8)
UNITED STATES DOLLARS South
America
Region
Peru
Cerro
Corona Total
Operating Results
Ore milled/treated December 2011 1,620 2,026
(000 tonnes) September 2011 1,674 1,944
Financial year ended 6,593 7,680
Yield (ounces per tonne) December 2011 0.049 0.085
September 2011 0.056 0.087
Financial year ended 0.058 0.086
Gold produced (000 ounces) December 2011 80.0 172.4
September 2011 93.9 168.7
Financial year ended 383.1 658.6
Gold sold (000 ounces) December 2011 78.8 172.4
September 2011 90.5 168.7
Financial year ended 383.0 658.6
Gold price received December 2011 1,649 1,681
(dollars per ounce) September 2011 1,481 1,729
Financial year ended 1,463 1,590
Total cash cost December 2011 489 741
(dollars per ounce) September 2011 494 891
Financial year ended 437 841
Notional cash expenditure December 2011 719 1,283
(dollars per ounce) September 2011 615 1,307
Financial year ended 592 1,231
Operating costs December 2011 23 70
(dollars per tonne) September 2011 25 74
Financial year ended 24 72
Financial Results ($ million)
Revenue December 2011 128.7 295.2
September 2011 133.5 292.3
Financial year ended 560.5 1,047.3
Net operating costs December 2011 (34.8) (118.4)
September 2011 (40.9) (149.3)
Financial year ended (157.6) (544.9)
- Operating costs December 2011 (37.5) (141.6)
September 2011 (41.0) (144.6)
Financial year ended (157.4) (553.9)
- Gold inventory change December 2011 2.8 23.2
September 2011 0.1 (4.7)
Financial year ended (0.1) 9.0
Operating profit December 2011 94.0 176.9
September 2011 92.6 143.0
Financial year ended 403.0 502.5
Amortisation of mining assets December 2011 (15.0) (78.8)
September 2011 (14.6) (43.7)
Financial year ended (58.6) (194.5)
Net operating profit December 2011 79.0 98.1
September 2011 78.0 99.3
Financial year ended 344.4 308.0
Other expenses December 2011 4.1 (4.5)
September 2011 (7.1) (2.6)
Financial year ended (9.7) (10.0)
Profit before royalties and
December 2011 83.2 93.6
taxation September 2011 71.0 96.7
Financial year ended 334.8 298.0
December 2011 (27.5) (35.0)
Royalties, mining and income
taxation September 2011 (32.6) (34.3)
Financial year ended (116.1) (109.1)
- Normal taxation December 2011 (22.2) -
September 2011 (32.3) -
Financial year ended (111.7) -
- Royalties December 2011 (3.0) (7.2)
September 2011 (4.4) (7.4)
Financial year ended (14.7) (26.3)
- Deferred taxation December 2011 (2.2) (27.8)
September 2011 4.0 (26.9)
Financial year ended 10.4 (82.8)
Profit before December 2011 55.7 58.6
non-recurring items September 2011 38.3 62.4
Financial year ended 218.7 188.9
Non-recurring items December 2011 (10.0) 4.9
September 2011 - -
Financial year ended (10.2) 0.7
Net profit December 2011 45.7 63.5
September 2011 38.3 62.3
Financial year ended 208.5 189.6
Net profit excluding gains and December 2011 45.8 62.3
losses on foreign exchange, September 2011 38.9 62.8
financial instruments and
non-recurring items Financial year ended 209.4 192.7
Capital Expenditure December 2011 (20.4) (83.2)
September 2011 (16.7) (76.2)
Financial year ended (69.4) (256.8)
UNITED STATES DOLLARS Australasia Region
Australia #
St Ives Agnew
Operating Results
Ore milled/treated December 2011 1,768 258
(000 tonnes) September 2011 1,682 262
Financial year ended 6,745 935
Yield (ounces per tonne) December 2011 0.068 0.202
September 2011 0.068 0.205
Financial year ended 0.069 0.208
Gold produced (000 ounces) December 2011 120.4 52.0
September 2011 115.0 53.7
Financial year ended 464.6 194.0
Gold sold (000 ounces) December 2011 120.4 52.0
September 2011 115.0 53.7
Financial year ended 464.6 194.0
Gold price received December 2011 1,680 1,684
(dollars per ounce) September 2011 1,715 1,758
Financial year ended 1,581 1,614
Total cash cost December 2011 777 657
(dollars per ounce) September 2011 978 704
Financial year ended 901 696
Notional cash expenditure December 2011 1,368 1,085
(dollars per ounce) September 2011 1,401 1,105
Financial year ended 1,287 1,096
Operating costs December 2011 59 144
(dollars per tonne) September 2011 63 145
Financial year ended 62 148
Financial Results ($ million)
Revenue December 2011 205.9 89.3
September 2011 197.5 94.8
Financial year ended 734.2 313.1
Net operating costs December 2011 (85.6) (32.8)
September 2011 (112.2) (37.1)
Financial year ended (412.4) (132.5)
- Operating costs December 2011 (103.8) (37.8)
September 2011 (106.6) (37.9)
Financial year ended (415.4) (138.5)
- Gold inventory change December 2011 18.2 5.0
September 2011 (5.5) 0.9
Financial year ended 3.0 6.0
Operating profit December 2011 120.3 56.5
September 2011 85.3 57.7
Financial year ended 321.8 180.6
Amortisation of mining assets December 2011
September 2011
Financial year ended
Net operating profit December 2011
September 2011
Financial year ended
Other expenses December 2011
September 2011
Financial year ended
Profit before royalties and
December 2011
taxation September 2011
Financial year ended
December 2011
Royalties, mining and income
taxation September 2011
Financial year ended
- Normal taxation December 2011
September 2011
Financial year ended
- Royalties December 2011
September 2011
Financial year ended
- Deferred taxation December 2011
September 2011
Financial year ended
Profit before December 2011
non-recurring items September 2011
Financial year ended
Non-recurring items December 2011
September 2011
Financial year ended
Net profit December 2011
September 2011
Financial year ended
Net profit excluding gains and December 2011
losses on foreign exchange, September 2011
financial instruments and
non-recurring items Financial year ended
Capital Expenditure December 2011 (63.8) (19.4)
September 2011 (54.8) (21.4)
Financial year ended (182.7) (74.1)
UNITED STATES DOLLARS AUSTRALIAN DOLLARS
Australasia Region #
Total St Ives Agnew
Operating Results
Ore milled/treated December 2011 2,026 1,768 258
(000 tonnes) September 2011 1,944 1,682 262
Financial year ended 7,680 6,745 935
Yield (ounces per
tonne) December 2011 0.085 0.068 0.202
September 2011 0.087 0.068 0.205
Financial year ended 0.086 0.069 0.208
Gold produced (000
ounces) December 2011 172.4 120.4 52.0
September 2011 168.7 115.0 53.7
Financial year ended 658.6 464.6 194.0
Gold sold (000 ounces) December 2011 172.4 120.4 52.0
September 2011 168.7 115.0 53.7
Financial year ended 658.6 464.6 194.0
Gold price received December 2011 1,665 1,663 1,668
(dollars per ounce) September 2011 1,638 1,625 1,666
Financial year ended 1,541 1,532 1,564
Total cash cost December 2011 734 770 651
(dollars per ounce) September 2011 844 927 667
Financial year ended 815 873 675
Notional cash
expenditure December 2011 1,270 1,355 1,074
(dollars per ounce) September 2011 1,238 1,328 1,047
Financial year ended 1,193 1,248 1,062
Operating costs December 2011 69 58 143
(dollars per tonne) September 2011 70 60 137
Financial year ended 70 60 144
Financial Results ($
million)
Revenue December 2011 291.1 203.1 88.0
September 2011 277.7 187.5 90.2
Financial year ended 1,015.0 711.6 303.4
Net operating costs December 2011 (117.4) (85.2) (32.3)
September 2011 (141.6) (106.3) (35.3)
Financial year ended (528.0) (399.7) (128.4)
- Operating costs December 2011 (139.9) (102.7) (37.2)
September 2011 (137.1) (101.1) (36.1)
Financial year ended (536.8) (402.6) (134.2)
- Gold inventory
change December 2011 22.5 17.5 5.0
September 2011 (4.5) (5.3) 0.8
Financial year ended 8.8 2.9 5.9
Operating profit December 2011 173.7 117.9 55.8
September 2011 136.2 81.2 55.0
Financial year ended 487.0 311.9 175.1
Amortisation of
mining assets December 2011 (77.1)
September 2011 (41.6)
Financial year ended (188.5)
Net operating profit December 2011 96.6
September 2011 94.6
Financial year ended 298.5
Other expenses December 2011 (4.4)
September 2011 (2.5)
Financial year ended (9.7)
Profit before
royalties and
December 2011 92.2
taxation September 2011 92.1
Financial year ended 288.8
December 2011 (34.3)
Royalties, mining and
income
taxation September 2011 (32.8)
Financial year ended (105.7)
- Normal taxation December 2011 -
September 2011 -
Financial year ended -
- Royalties December 2011 (7.1)
September 2011 (7.0)
Financial year ended (25.5)
- Deferred taxation December 2011 (27.2)
September 2011 (25.8)
Financial year ended (80.2)
Profit before December 2011 57.8
non-recurring items September 2011 59.3
Financial year ended 183.0
Non-recurring items December 2011 4.8
September 2011 (0.1)
Financial year ended 0.7
Net profit December 2011 62.7
September 2011 59.2
Financial year ended 183.8
Net profit excluding
gains and December 2011 61.2
losses on foreign
exchange, September 2011 59.9
financial instruments
and
non-recurring items Financial year ended 186.7
Capital Expenditure December 2011 (81.7) (62.7) (19.1)
September 2011 (72.6) (52.2) (20.4)
Financial year ended (248.8) (177.1) (71.8)
# 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
Total
Mine
Operations Total KDC
Operating costs(1) Dec 2011 (5,651.9) (3,011.8) (1,863.7)
Sep 2011 (5,450.4) (3,131.1) (1,952.4)
Financial year ended (21,312.0) (11,999.6) (7,452.4)
Dec 2011 222.6 - -
Gold-in-process and
inventory change* Sep 2011 34.1 - -
Financial year ended 447.0 - -
Dec 2011 (28.7) (17.2) (12.3)
Less:
Rehabilitation costs Sep 2011 (26.4) (17.2) (12.4)
Financial year ended (106.5) (69.0) (49.5)
Dec 2011 (168.3) (47.7) (32.3)
General and admin
Sep 2011 (160.4) (53.3) (36.8)
Financial year ended (624.3) (208.8) (143.7)
Dec 2011 (375.3) (146.6) (123.6)
Plus:
Royalties Sep 2011 (304.7) (80.7) (71.5)
Financial year ended (1,081.0) (304.9) (256.5)
TOTAL CASH COST (2) Dec 2011 (5,607.6) (3,093.5) (1,942.7)
Sep 2011 (5,534.2) (3,141.3) (1,974.7)
Financial year ended (21,215.2) (12,026.7) (7,515.7)
Dec 2011 (1,653.7) (736.8) (439.1)
Plus:
Amortisation* Sep 2011 (1,327.4) (679.8) (410.1)
Financial year ended (5,408.5) (2,731.4) (1,663.3)
Dec 2011 (28.7) (17.2) (12.3)
Rehabilitation
Sep 2011 (26.4) (17.2) (12.4)
Financial year ended (106.5) (69.0) (49.5)
TOTAL PRODUCTION Dec 2011 (7,290.0) (3,847.5) (2,394.1)
COST (3) Sep 2011 (6,888.0) (3,838.3) (2,397.2)
Financial year ended (26,730.2) (14,827.1) (9,228.5)
Gold sold Dec 2011 905.3 434.0 285.8
- thousand ounces Sep 2011 921.9 428.3 279.2
Financial year ended 3,696.6 1,720.0 1,100.2
TOTAL CASH COST Dec 2011 767 882 841
- US$/oz Sep 2011 851 1,040 1,003
Financial year ended 795 968 946
TOTAL CASH COST Dec 2011 199,155 229,148 218,526
- R/kg Sep 2011 192,997 235,780 227,395
Financial year ended 184,515 224,815 219,642
TOTAL PRODUCTION Dec 2011 997 1,097 1,037
COST - US$/oz Sep 2011 1,060 1,271 1,218
Financial year ended 1,002 1,194 1,162
TOTAL PRODUCTION Dec 2011 258,905 285,000 269,303
COST - R/kg Sep 2011 240,210 288,096 279,048
Financial year ended 232,481 277,163 269,697
South Africa Region
South
Beatrix Deep
Operating costs(1) Dec 2011 (605.9) (542.2)
Sep 2011 (628.3) (550.4)
Financial year ended (2,408.8) (2,138.4)
Dec 2011 - -
Gold-in-process and
inventory change* Sep 2011 - -
Financial year ended - -
Dec 2011 (3.6) (1.3)
Less:
Rehabilitation costs Sep 2011 (3.5) (1.3)
Financial year ended (14.3) (5.2)
Dec 2011 (7.1) (8.3)
General and admin
Sep 2011 (8.0) (8.5)
Financial year ended (32.0) (33.1)
Dec 2011 (19.0) (4.0)
Plus:
Royalties Sep 2011 (5.3) (3.9)
Financial year ended (33.0) (15.4)
TOTAL CASH COST (2) Dec 2011 (614.2) (536.6)
Sep 2011 (622.1) (544.5)
Financial year ended (2,395.5) (2,115.5)
Dec 2011 (150.4) (147.3)
Plus:
Amortisation* Sep 2011 (127.4) (142.3)
Financial year ended (514.4) (553.7)
Dec 2011 (3.6) (1.3)
Rehabilitation
Sep 2011 (3.5) (1.3)
Financial year ended (14.3) (5.2)
TOTAL PRODUCTION Dec 2011 (768.2) (685.2)
COST (3) Sep 2011 (753.0) (688.1)
Financial year ended (2,924.2) (2,674.4)
Gold sold Dec 2011 89.7 58.5
- thousand ounces Sep 2011 84.7 64.4
Financial year ended 346.8 273.0
TOTAL CASH COST Dec 2011 848 1,134
- US$/oz Sep 2011 1,041 1,199
Financial year ended 957 1,073
TOTAL CASH COST Dec 2011 220,222 294,673
- R/kg Sep 2011 236,002 271,842
Financial year ended 222,073 249,146
TOTAL PRODUCTION Dec 2011 1,060 1,448
COST - US$/oz Sep 2011 1,260 1,516
Financial year ended 1,168 1,357
TOTAL PRODUCTION Dec 2011 275,439 376,277
COST - R/kg Sep 2011 285,660 343,535
Financial year ended 271,086 314,969
West Africa Region
Ghana
Total Tarkwa Damang
Operating costs(1) Dec 2011 (1,197.9) (908.0) (289.9)
Sep 2011 (1,010.3) (771.4) (238.9)
Financial year ended (4,176.6) (3,150.6) (1,026.0)
Dec 2011 87.5 94.0 (6.5)
Gold-in-process and
inventory change* Sep 2011 58.3 42.6 15.7
Financial year ended 386.3 382.8 3.5
Dec 2011 (5.4) (4.8) (0.6)
Less:
Rehabilitation costs Sep 2011 (3.7) (3.2) (0.5)
Financial year ended (15.5) (13.3) (2.2)
Dec 2011 (80.5) (70.7) (9.8)
General and admin
Sep 2011 (70.5) (64.2) (6.3)
Financial year ended (273.6) (244.2) (29.4)
Dec 2011 (146.1) (112.9) (33.2)
Plus:
Royalties Sep 2011 (141.1) (108.3) (32.8)
Financial year ended (479.8) (368.2) (111.6)
TOTAL CASH COST (2) Dec 2011 (1,170.6) (851.4) (319.2)
Sep 2011 (1,018.9) (769.7) (249.2)
Financial year ended (3,981.0) (2,878.5) (1,102.5)
Dec 2011 (243.4) (192.1) (51.3)
Plus:
Amortisation* Sep 2011 (228.4) (176.8) (51.6)
Financial year ended (853.9) (671.1) (182.8)
Dec 2011 (5.4) (4.8) (0.6)
Rehabilitation
Sep 2011 (3.7) (3.2) (0.5)
Financial year ended (15.5) (13.3) (2.2)
TOTAL PRODUCTION Dec 2011 (1,419.4) (1,048.3) (371.1)
COST (3) Sep 2011 (1,251.0) (949.7) (301.3)
Financial year ended (4,850.4) (3,562.9) (1,287.5)
Gold sold Dec 2011 220.0 170.4 49.6
- thousand ounces Sep 2011 234.4 180.0 54.3
Financial year ended 935.0 717.3 217.7
TOTAL CASH COST Dec 2011 659 618 796
- US$/oz Sep 2011 617 606 651
Financial year ended 590 556 701
TOTAL CASH COST Dec 2011 171,065 160,642 206,870
- R/kg Sep 2011 139,797 137,446 147,456
Financial year ended 136,879 129,011 162,803
TOTAL PRODUCTION Dec 2011 798 761 926
COST - US$/oz Sep 2011 757 748 787
Financial year ended 719 688 819
TOTAL PRODUCTION Dec 2011 207,424 197,792 240,506
COST - R/kg Sep 2011 171,605 169,589 178,284
Financial year ended 166,772 159,685 190,121
South
America
Region
Peru
Cerro
Corona Total
Operating costs(1) Dec 2011 (304.2) (1,138.0)
Sep 2011 (289.6) (1,019.4)
Financial year ended (1,136.6) (3,999.2)
Dec 2011 14.0 121.1
Gold-in-process and
inventory change* Sep 2011 0.2 (24.4)
Financial year ended 11.5 49.2
Dec 2011 (1.0) (5.1)
Less:
Rehabilitation costs Sep 2011 (0.9) (4.6)
Financial year ended (3.6) (18.4)
Dec 2011 (3.2) (36.9)
General and admin
Sep 2011 (4.3) (32.3)
Financial year ended (17.9) (124.0)
Dec 2011 (25.1) (57.5)
Plus:
Royalties Sep 2011 (30.7) (52.2)
Financial year ended (106.1) (190.2)
TOTAL CASH COST (2) Dec 2011 (311.1) (1,032.4)
Sep 2011 (314.9) (1,059.1)
Financial year ended (1,209.7) (3,997.8)
Dec 2011 (115.2) (558.3)
Plus:
Amortisation* Sep 2011 (102.3) (316.9)
Financial year ended (435.3) (1,387.9)
Dec 2011 (1.0) (5.1)
Rehabilitation
Sep 2011 (0.9) (4.6)
Financial year ended (3.6) (18.4)
TOTAL PRODUCTION Dec 2011 (427.3) (1,595.8)
COST (3) Sep 2011 (418.1) (1,380.6)
Financial year ended (1,648.6) (5,404.1)
Gold sold Dec 2011 78.8 172.4
- thousand ounces Sep 2011 90.5 168.7
Financial year ended 383.0 658.6
TOTAL CASH COST Dec 2011 489 741
- US$/oz Sep 2011 494 891
Financial year ended 437 841
TOTAL CASH COST Dec 2011 126,928 192,504
- R/kg Sep 2011 111,865 201,849
Financial year ended 101,536 195,167
TOTAL PRODUCTION Dec 2011 671 1,145
COST - US$/oz Sep 2011 655 1,161
Financial year ended 596 1,137
TOTAL PRODUCTION Dec 2011 174,337 297,554
COST - R/kg Sep 2011 148,526 263,126
Financial year ended 138,375 263,821
Australasia Region
Australia
St Ives Agnew
Operating costs(1) Dec 2011 (837.2) (300.8)
Sep 2011 (752.1) (267.3)
Financial year ended (2,999.2) (1,000.0)
Dec 2011 92.9 28.2
Gold-in-process and
inventory change* Sep 2011 (28.8) 4.4
Financial year ended 15.9 33.3
Dec 2011 (4.2) (0.9)
Less:
Rehabilitation costs Sep 2011 (3.7) (0.9)
Financial year ended (14.9) (3.5)
Dec 2011 (24.7) (12.2)
General and admin
Sep 2011 (19.1) (13.2)
Financial year ended (79.3) (44.7)
Dec 2011 (40.9) (16.6)
Plus:
Royalties Sep 2011 (34.7) (17.5)
Financial year ended (133.2) (57.0)
TOTAL CASH COST (2) Dec 2011 (756.3) (276.1)
Sep 2011 (792.8) (266.3)
Financial year ended (3,022.3) (975.5)
Dec 2011 - -
Plus:
Amortisation* Sep 2011 - -
Financial year ended - -
Dec 2011 - -
Rehabilitation
Sep 2011 - -
Financial year ended - -
TOTAL PRODUCTION Dec 2011 - -
COST (3) Sep 2011 - -
Financial year ended - -
Gold sold Dec 2011 120.4 52.0
- thousand ounces Sep 2011 115.0 53.7
Financial year ended 464.6 194.0
TOTAL CASH COST Dec 2011 777 657
- US$/oz Sep 2011 978 704
Financial year ended 901 696
TOTAL CASH COST Dec 2011 201,895 170,748
- R/kg Sep 2011 221,638 159,461
Financial year ended 209,170 161,640
TOTAL PRODUCTION Dec 2011 - -
COST - US$/oz Sep 2011 - -
Financial year ended - -
TOTAL PRODUCTION Dec 2011 - -
COST - R/kg Sep 2011 - -
Financial year ended - -
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 non-
recurring 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 = R8.08 and US$1 = R7.05 for the December
2011 and September 2011 quarters, respectively.
Capital expenditure
Figures are in South African rand millions unless otherwise stated.
Total
Group
Total KDC
Sustaining capital Dec 2011 (1,622.2) (316.7) (265.2)
Sep 2011 (1,203.4) (206.8) (156.8)
Financial year ended (4,802.2) (785.2) (589.4)
Ore reserve Dec 2011 (539.9) (539.9) (441.0)
development Sep 2011 (567.1) (567.1) (454.0)
Financial year ended (2,126.2) (2,126.2) (1,710.9)
Project capital # Dec 2011 (810.4) (607.4) -
Sep 2011 (550.2) (491.9) -
Financial year ended (2,515.3) (1,982.4) -
Brownfields Dec 2011 (208.7) - -
exploration Sep 2011 (132.6) - -
Financial year ended (544.4) - -
Total capital Dec 2011 (3,181.2) (1,464.0) (706.2)
expenditure Sep 2011 (2,453.3) (1,265.8) (610.8)
Financial year ended (9,988.1) (4,893.8) (2,300.3)
South Africa Region
South
Beatrix Deep Total
Sustaining capital Dec 2011 (51.5) - (610.6)
Sep 2011 (50.0) - (440.1)
Financial year ended (195.8) - (2,028.2)
Ore reserve Dec 2011 (98.9) - -
development Sep 2011 (113.1) - -
Financial year ended (415.3) - -
Project capital # Dec 2011 - (607.4) -
Sep 2011 - (491.9) -
Financial year ended - (1,982.4) -
Brownfields Dec 2011 - - (95.0)
exploration Sep 2011 - - (35.9)
Financial year ended - - (186.8)
Total capital Dec 2011 (150.4) (607.4) (705.6)
expenditure Sep 2011 (163.1) (491.9) (476.0)
Financial year ended (611.1) (1,982.4) (2,215.0)
South
West Africa Region
America
Region
Ghana Peru
Cerro
Tarkwa Damang Corona
Sustaining capital Dec 2011 (498.6) (112.0) (149.4)
Sep 2011 (332.0) (108.1) (110.9)
Financial year ended (1,580.5) (447.7) (471.8)
Ore reserve Dec 2011 - - -
development Sep 2011 - - -
Financial year ended - - -
Project capital # Dec 2011 - - (11.6)
Sep 2011 - - (6.6)
Financial year ended - - (29.2)
Brownfields Dec 2011 - (95.0) -
exploration Sep 2011 - (35.9) -
Financial year ended - (186.8) -
Total capital Dec 2011 (498.6) (207.0) (161.0)
expenditure Sep 2011 (332.0) (144.0) (117.5)
Financial year ended (1,580.5) (634.5) (501.0)
Australasia Region
Australia
Total St Ives
Sustaining capital Dec 2011 (535.4) (413.0)
Sep 2011 (438.0) (315.2)
Financial year ended (1,496.2) (1,056.7)
Ore reserve Dec 2011 - -
development Sep 2011 - -
Financial year ended - -
Project capital # Dec 2011 - -
Sep 2011 - -
Financial year ended - -
Brownfields Dec 2011 (113.7) (81.2)
exploration Sep 2011 (96.7) (68.7)
Financial year ended (357.6) (262.4)
Total capital Dec 2011 (649.1) (494.2)
expenditure Sep 2011 (534.7) (383.9)
Financial year ended (1,853.8) (1,319.1)
Agnew Corporate
Sustaining capital Dec 2011 (122.4) (10.1)
Sep 2011 (122.8) (7.6)
Financial year ended (439.5) (20.8)
Ore reserve Dec 2011 - -
development Sep 2011 - -
Financial year ended - -
Project capital # Dec 2011 - (191.4)
Sep 2011 - (51.7)
Financial year ended - (503.7)
Brownfields Dec 2011 (32.5) -
exploration Sep 2011 (28.0) -
Financial year ended (95.2) -
Total capital Dec 2011 (154.9) (201.5)
expenditure Sep 2011 (150.8) (59.3)
Financial year ended (534.7) (524.5)
# Project capital under Corporate in the December quarter includes R34 million
(US$4 million) at the Arctic Platinum Project (APP), R70 million (US$9
million) at Chucapaca being our 51 per cent share in this project, R79 million
(US$11 million) on the Damang Super-pit and general corporate capital
expenditure. From the September quarter and retrospectively for the year, the
NCE project capital at Chucapaca only includes the 51 per cent funded by Gold
Fields and excludes the 49 per cent funded by Buenaventura, with the result
that a credit of R50 million (US$7 million) is included in corporate capital
expenditure for the September quarter. The table above includes only Gold
Fields` 51 per cent share of capital expenditure in Chucapaca, resulting in
total capital expenditure of R3,181 million (US$394 million) compared with
R3,242 million (US$410 million) as reported in the Statement of Cash Flows.
Notional cash expenditure##
Figures are in South African rand millions unless otherwise stated
Total
Group Total KDC
Dec 2011 (5,651.9) (3,011.8) (1,863.7)
Operating costs
Sep 2011 (5,450.4) (3,131.1) (1,952.4)
Financial year ended (21,312.0) (11,999.6) (7,452.4)
Dec 2011 (3,181.2) (1,464.0) (706.2)
Capital
expenditure Sep 2011 (2,453.3) (1,265.8) (610.8)
Financial year ended (9,988.1) (4,893.8) (2,300.3)
Dec 2011 313,286 331,541 289,078
Notional cash
expenditure Sep 2011 274,615 330,023 295,164
- R/kg Financial year ended 272,224 315,788 285,017
Dec 2011 1,206 1,276 1,113
Notional cash
expenditure Sep 2011 1,212 1,456 1,302
- US$/oz Financial year ended 1,173 1,360 1,228
South Africa Region
South
Beatrix Deep Total
Dec 2011 (605.9) (542.2) (1,197.9)
Operating costs
Sep 2011 (628.3) (550.4) (1,010.3)
Financial year ended (2,408.8) (2,138.4) (4,176.6)
Dec 2011 (150.4) (607.4) (705.6)
Capital
expenditure Sep 2011 (163.1) (491.9) (476.0)
Financial year ended (611.1) (1,982.4) (2,215.0)
Dec 2011 271,172 631,301 278,167
Notional cash
expenditure Sep 2011 300,228 520,369 203,882
- R/kg Financial year ended 279,957 485,314 219,763
Dec 2011 1,044 2,430 1,071
Notional cash
expenditure Sep 2011 1,325 2,296 899
- US$/oz Financial year ended 1,206 2,091 947
West Africa Region
Ghana
Tarkwa Damang
Dec 2011 (908.0) (289.9)
Operating costs
Sep 2011 (771.4) (238.9)
Financial year ended (3,150.6) (1,026.0)
Dec 2011 (498.6) (207.0)
Capital
expenditure Sep 2011 (332.0) (144.0)
Financial year ended (1,580.5) (634.5)
Dec 2011 265,396 322,035
Notional cash
expenditure Sep 2011 197,036 226,568
- R/kg Financial year ended 212,043 245,201
Dec 2011 1,022 1,240
Notional cash
expenditure Sep 2011 869 1,000
- US$/oz Financial year ended 913 1,056
South
America
Region
Peru
Cerro
Corona Total
Dec 2011 (304.2) (1,138.0)
Operating costs
Sep 2011 (289.6) (1,019.4)
Financial year ended (1,136.6) (3,999.2)
Dec 2011 (161.0) (649.1)
Capital
expenditure Sep 2011 (117.5) (534.7)
Financial year ended (501.0) (1,853.8)
Dec 2011 186,902 333,228
Notional cash
expenditure Sep 2011 139,370 296,188
- R/kg Financial year ended 137,440 285,735
Dec 2011 719 1,283
Notional cash
expenditure Sep 2011 615 1,307
- US$/oz Financial year ended 592 1,231
Australasia Region Corporate
Australia
St Agnew
Ives
Operating costs Dec 2011 (837.2) (300.8) -
Sep 2011 (752.1) (267.3) -
Financial year ended (2,999.2) (1,000.0) -
Dec 2011 (494.2) (154.9) (201.5)
Capital
expenditure Sep 2011 (383.9) (150.8) (59.3)
Financial year ended (1,319.1) (534.7) (524.5)
Dec 2011 355,419 281,818 -
Notional cash
expenditure Sep 2011 317,585 250,359 -
- R/kg Financial year ended 298,865 254,300 -
Dec 2011 1,368 1,085 -
Notional cash
expenditure Sep 2011 1,401 1,105 -
- US$/oz Financial year ended 1,287 1,096 -
## Notional cash expenditure (NCE) per kilogram (ounce) = operating costs plus
capital expenditure, excluding minority interest in projects, divided by gold
produced.
Underground and surface
South African rand and metric units
South Africa Region
Total
Mine
Operations
Operating Results Total KDC
Ore milled/
treated
(000 tonnes)
- underground December 2011 2,916 2,403 1,232
September 2011 2,851 2,283 1,221
Financial year ended 11,516 9,198 4,814
- surface December 2011 12,110 1,930 1,612
September 2011 11,919 2,044 1,584
Financial year ended 47,925 7,890 6,017
- total December 2011 15,026 4,333 2,844
September 2011 14,770 4,327 2,805
Financial year ended 59,441 17,088 10,831
Yield (grams
per tonne)
- underground December 2011 5.3 5.1 6.3
September 2011 5.4 5.3 6.2
Financial year ended 5.4 5.3 6.3
- surface December 2011 1.0 0.6 0.7
September 2011 1.1 0.6 0.7
Financial year ended 1.1 0.6 0.7
- combined December 2011 1.9 3.1 3.1
September 2011 1.9 3.1 3.1
Financial year ended 1.9 3.1 3.2
Gold produced
(kilograms)
- underground December 2011 15,551 12,258 7,725
September 2011 15,446 12,090 7,612
Financial year ended 61,700 48,623 30,105
- surface December 2011 12,644 1,242 1,165
September 2011 13,335 1,233 1,072
Financial year ended 53,279 4,873 4,113
- total December 2011 28,195 13,500 8,890
September 2011 28,781 13,323 8,684
Financial year ended 114,979 53,496 34,218
Operating costs (Rand per tonne)
- underground December 2011 1,179 1,171 1,374
September 2011 1,227 1,294 1,483
Financial year ended 1,172 1,225 1,424
- surface December 2011 183 102 106
September 2011 164 87 90
Financial year ended 163 93 100
- total December 2011 376 695 655
September 2011 369 724 696
Financial year ended 359 702 688
South
Operating Results Beatrix Deep # Total
Ore milled/
treated
(000 tonnes)
- underground December 2011 647 524 -
September 2011 547 515 -
Financial year ended 2,341 2,043 -
- surface December 2011 293 25 7,047
September 2011 352 108 6,825
Financial year ended 1,476 397 28,080
- total December 2011 940 549 7,047
September 2011 899 623 6,825
Financial year ended 3,817 2,440 28,080
Yield (grams
per tonne)
- underground December 2011 4.2 4.5 -
September 2011 4.6 5.0 -
Financial year ended 4.4 5.1 -
- surface December 2011 0.2 0.2 1.0
September 2011 0.3 0.5 1.1
Financial year ended 0.3 0.7 1.0
- combined December 2011 3.0 3.3 1.0
September 2011 2.9 3.2 1.1
Financial year ended 2.8 3.5 1.0
Gold produced
(kilograms)
- underground December 2011 2,716 1,817 -
September 2011 2,524 1,954 -
Financial year ended 10,313 8,205 -
- surface December 2011 73 4 6,843
September 2011 112 49 7,290
Financial year ended 474 286 29,084
- total December 2011 2,789 1,821 6,843
September 2011 2,636 2,003 7,290
Financial year ended 10,787 8,491 29,084
Operating costs (Rand per tonne)
- underground December 2011 902 1,029 -
September 2011 1,101 1,051 -
Financial year ended 987 1,029 -
- surface December 2011 77 120 170
September 2011 74 86 148
Financial year ended 66 92 149
- total December 2011 645 988 170
September 2011 699 883 148
Financial year ended 631 876 149
West Africa Region South
America
Region
Ghana Peru
Cerro
Operating Results Tarkwa Damang Corona
Ore milled/
treated
(000 tonnes)
- underground December 2011 - - -
September 2011 - - -
Financial year ended - - -
- surface December 2011 5,855 1,192 1,620
September 2011 5,597 1,228 1,674
Financial year ended 23,138 4,942 6,593
- total December 2011 5,855 1,192 1,620
September 2011 5,597 1,228 1,674
Financial year ended 23,138 4,942 6,593
Yield (grams
per tonne)
- underground December 2011 - - -
September 2011 - - -
Financial year ended - - -
- surface December 2011 0.9 1.3 1.5
September 2011 1.0 1.4 1.7
Financial year ended 1.0 1.4 1.8
- combined December 2011 0.9 1.3 1.5
September 2011 1.0 1.4 1.7
Financial year ended 1.0 1.4 1.8
Gold produced
(kilograms)
- underground December 2011 - - -
September 2011 - - -
Financial year ended - - -
- surface December 2011 5,300 1,543 2,489
September 2011 5,600 1,690 2,921
Financial year ended 22,312 6,772 11,915
- total December 2011 5,300 1,543 2,489
September 2011 5,600 1,690 2,921
Financial year ended 22,312 6,772 11,915
Operating costs (Rand per tonne)
- underground December 2011 - - -
September 2011 - - -
Financial year ended - - -
- surface December 2011 155 243 188
September 2011 138 195 173
Financial year ended 136 208 172
- total December 2011 155 243 188
September 2011 138 195 173
Financial year ended 136 208 172
Australasia Region
Australia
Operating
Results Total St Ives Agnew
Ore milled/
treated
(000 tonnes)
- underground December 2011 513 370 143
September 2011 568 424 144
Financial year ended 2,318 1,707 611
- surface December 2011 1,513 1,398 115
September 2011 1,376 1,258 118
Financial year ended 5,362 5,038 324
- total December 2011 2,026 1,768 258
September 2011 1,944 1,682 262
Financial year ended 7,680 6,745 935
Yield (grams
per tonne)
- underground December 2011 6.4 5.1 9.7
September 2011 5.9 4.7 9.5
Financial year ended 5.6 4.5 8.9
- surface December 2011 1.4 1.3 2.0
September 2011 1.4 1.3 2.5
Financial year ended 1.4 1.3 1.9
- combined December 2011 2.6 2.1 6.3
September 2011 2.7 2.1 6.4
Financial year ended 2.7 2.1 6.5
Gold produced
(kilograms)
- underground December 2011 3,293 1,901 1,392
September 2011 3,356 1,984 1,372
Financial year ended 13,077 7,666 5,411
- surface December 2011 2,070 1,845 225
September 2011 1,891 1,593 298
Financial year ended 7,407 6,783 624
- total December 2011 5,363 3,746 1,617
September 2011 5,247 3,577 1,670
Financial year ended 20,484 14,449 6,035
Operating costs (Rand per tonne)
- underground December 2011 1,214 974 1,835
September 2011 960 762 1,544
Financial year ended 964 787 1,457
- surface December 2011 341 341 334
September 2011 345 341 381
Financial year ended 329 329 340
- total December 2011 562 474 1,166
September 2011 524 447 1,020
Financial year ended 521 445 1,070
# December quarter includes 124,000 tonnes (September quarter includes 123,000
tonnes) 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, which are reported
separately where appropriate.
KDC December 2011 quarter
Carbon
Reef Leader Kloof Main VCR
Advanced (m) 4,829 95 773 5,556
Advanced on reef (m) 753 72 255 706
Sampled (m) 684 57 231 546
Channel width (cm) 77 149 57 187
Average value - (g/t) 25.6 8.1 15.2 13.4
- (cm.g/t) 1,983 1,202 868 2,502
KDC September 2011 quarter
Carbon
Reef Leader Kloof Main VCR
Advanced (m) 4,502 199 666 5,093
Advanced on reef (m) 499 43 181 752
Sampled (m) 546 15 243 618
Channel width (cm) 99 99 86 107
Average value - (g/t) 19.0 17.4 14.7 24.6
- (cm.g/t) 1,879 1,714 1,269 2,636
KDC Year ended 2011
Carbon
Reef Leader Kloof Main VCR
Advanced (m) 18,716 686 3,771 21,826
Advanced on reef (m) 3,223 257 845 3,353
Sampled (m) 3,042 201 813 2,715
Channel width (cm) 78 111 82 124
Average value - (g/t) 23.6 16.8 11.2 22.0
- (cm.g/t) 1,851 1,876 922 2,730
Beatrix December 2011 quarter
Reef Beatrix Kalkoenkrans
Advanced (m) 4,374 1,749
Advanced on reef (m) 815 537
Sampled (m) 846 390
Channel width (cm) 165 92
Average value - (g/t) 7.1 19.1
- (cm.g/t) 1,176 1,749
Beatrix September 2011 quarter
Reef Beatrix Kalkoenkrans
Advanced (m) 4,065 1,377
Advanced on reef (m) 994 188
Sampled (m) 1,071 186
Channel width (cm) 141 133
Average value - (g/t) 7.0 14.6
- (cm.g/t) 982 1,941
Beatrix Year ended 2011
Reef Beatrix Kalkoenkrans
Advanced (m) 16,978 6,404
Advanced on reef (m) 4,360 1,342
Sampled (m) 4,218 1,179
Channel width (cm) 126 104
Average value - (g/t) 8.9 15.9
- (cm.g/t) 1,125 1,658
December 2011 September 2011
South Deep quarter quarter F2011
Elsburgs 1,2 Elsburgs 1,2 Elsburgs 1,2
Reef
Main Advanced (m) 3,175 2,938 12,018
- Main above 95 level (m) 1,838 1,484 6,911
- Main below 95 level (m) 1,337 1,454 5,107
Advanced on reef (m) 1,552 1,204 5,804
Square metres
de-stressed (m) 7,373 6,815 24,729
- Reserve value
de-stressed (g/t) 7.1 7.2 7.1
Shaft sinking (m) 47 28 75
1) Trackless development in the Elsburg reefs is evaluated by means of the
resource model.
2) Full channel width not fully 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 Office
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
Office of the United Kingdom
Secretaries
London
St James`s Corporate Services Limited
6 St James`s Place
London SW1A 1NP
United Kingdom
Tel: +44 20 7499 3916
Fax: +44 20 7491 1989
American Depositary Receipts Transfer
Agent
Bank of New York Mellon
BNY Mellon Shareowner Services
PO 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
Zakira Amra
Tel: +27 11 562 9775
Mobile: +27 79 694 0267
e-mail: zakira.amra@goldfields.co.za
Willie Jacobsz
Tel: +508 839 1188
Mobile: +857 241 7127
e-mail: willie.jacobsz@gfexpl.com
Media Enquiries
Sven Lunsche
Tel: +27 11 562 9763
Mobile: +27 83 260 9279
e-mail: sven.lunsche@goldfields.co.za
Transfer Secretaries
South Africa
Computershare Investor Services
(Proprietary) Limited
Ground Floor
70 Marshall Street
Johannesburg, 2001
PO Box 61051
Marshalltown, 2107
Tel: +27 11 370 5000
Fax: +27 11 688 5248
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 8.30am - 5pm
Mon-Fri) or (from overseas)
+44 20 8639 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
SWX: GOLI
Sponsor:
J.P. Morgan Equities Limited
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 and unplanned maintenance 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.
Directors
M A Ramphele (Chair) K Ansah # A R Hill#
N J Holland* (Chief Executive Officer) C A Carolus D L Lazaro#
P A Schmidt (Chief Financial Officer) R Danino ** R P Menell
M S Moloko R L Pennant-Rea *
D N Murray G M Wilson
D M J Ncube
* British # Ghanaian #Canadian Filipino
** Peruvian Independent Director Non-independent Director
Date: 17/02/2012 07:50:01 Supplied by www.sharenet.co.za
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