Wrap Text
GFI - Gold Fields Limited - Costs contained despite seasonal decline in
production
Gold Fields Limited
Incorporated in the Republic of South
Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN - ZAE000018123
COSTS CONTAINED DESPITE SEASONAL DECLINE IN PRODUCTION
JOHANNESBURG. 19 May 2011, Gold Fields Limited (NYSE & JSE: GFI) today
announced net earnings for the March 2011 quarter of R1,100 million compared
with a loss of R777 million in the December 2010 quarter and earnings of R316
million in the March 2010 quarter. In US dollar terms net earnings for the
March 2011 quarter were US$158 million, compared with a loss of US$106 million
in the December 2010 quarter and earnings of US$44 million in the March 2010
quarter.
March 2011 quarter salient features:
- Group attributable gold production 830,000 ounces, 5 per cent higher than
corresponding quarter last year;
- Total cash cost up 4 per cent to R168,455 per kilogram (US$751 per ounce) in
line with corresponding quarter last year;
- Net operating costs reduced for the third successive quarter;
- NCE margin up 1 percentage point to 21 per cent; and
- Process of acquiring minorities in Peru completed and Ghana commenced.
Statement by Nick Holland, Chief Executive Officer of Gold Fields:
"Gold production of 830,000 ounces in the March 2011 quarter was 5 per cent
higher than the corresponding quarter a year ago (793,000 ounces). The fall of
8 per cent from the previous quarter was due to the traditional Christmas
break in South Africa.
Sound cost control in all Regions has resulted in net operating costs
decreasing from R5,015 million (US$724 million) in the December quarter to
R4,878 million (US$699 million) in the March quarter as operations continue to
benefit from business process re-engineering (BPR). This is the third quarter
in a row that net operating costs have been reduced. Despite the relatively
high fixed cost nature of the business, total cash cost increased quarter on
quarter by only 4 per cent from R161,894 per kilogram (US$728 per ounce) to
R168,455 per kilogram (US$751 per ounce) despite lower production in the March
quarter compared with the December quarter. Cost containment allowed Gold
Fields to increase its NCE margin to 21 per cent. Our intention is to position
the Group to generate sustainable margins at a range of long-term gold prices.
Safety remains Gold Fields` single most important operational and
sustainability issue. This is embodied in our promise that "if we cannot mine
safely, we will not mine". To this end, we deeply regret the five fatalities
reported this quarter. Despite a significant reduction in fatalities over the
past three years, we have not shown an improvement over the last three
quarters. Subsequently we are applying even greater rigour to our safety
initiatives, centred mainly around strategies to engineer out risks, increased
focus on compliance to standards and behavioural change.
Our growth strategy continues apace. Resource definition drilling continues at
the Chucapaca project in Peru, with twelve drills currently on site. Drilling
results demonstrate strong grade and structural continuity within the current
resource model, and suggest that mineralisation is still open to the west. In
parallel, work is ongoing on collecting data for the feasibility study,
including metallurgical test work and the environmental impact assessment
(EIA). A substantial community engagement and socio-economic programme is
underway in the Chucapaca project area.
In the Philippines, exploration at the Far South East project is ramping up
with five underground diamond drill rigs operating. Three more rigs are
expected to be commissioned during the June 2011 quarter.
The metallurgical drilling programme at the Arctic Platinum project in Finland
was completed. Two 50 tonne ore samples are now available for pilot plant
flotation, which is scheduled to start in the June 2011 quarter and completed
in the September 2011 quarter.
At the Yanfolila project in southern Mali, an inferred Mineral Resource of
740,000 gold equivalent ounces was declared as at December 2010. The resource
delineation drilling programme is continuing and we expect further meaningful
increases in our resource position during 2011. In addition, a scoping study
is planned for later in the year.
Due to the progress we have made on these projects we are well positioned to
achieve our goal of the Group having a profile of 5 million ounces per annum
either in production or in development by 2015.
At the end of the March quarter, Gold Fields Corona (BVI) Limited, a wholly
owned subsidiary of Gold Fields Limited made a voluntary purchase offer to
acquire the outstanding common voting shares and investment shares of Gold
Fields La Cima that were not already owned. The offer closed on 15 April 2011
with a high percentage take-up bringing our effective economic shareholding in
La Cima (Cerro Corona) to 98.5 per cent from 80.7 per cent. This transaction
was partially financed by a draw-down of existing debt facilities.
We have also entered into a binding agreement with IAMGOLD Corporation to
acquire its 18.9 per cent minority stake in our Tarkwa and Damang mines in
Ghana, for a cash consideration of US$667 million. The completion of the
proposed acquisition, which is subject to certain conditions precedent being
met, including Gold Fields shareholders approval, is expected by 31 July 2011.
These transactions are low risk acquisitions in line with our strategy of
increasing our offshore exposure and acquiring 100 per cent of our operating
assets where possible.
We have published our Integrated Annual Report for the six months to 31
December 2010. This marks an important change for Gold Fields, as it
represents our first attempt at `integrated` reporting, blending our
operational, sustainability and financial performance.
The integrated report provides a holistic understanding of Gold Fields
performance, risks and opportunities and exciting long-term prospects. I
encourage you to read the report."
Stock data
Number of shares in issue
- at end March 2011 722,283,489
- average for the quarter 721,328,149
Free Float 100 per cent
ADR Ratio 1:1
Bloomberg / Reuters GFISJ / GFLJ.J
JSE Limited - (GFI)
Range - Quarter ZAR111.41 - ZAR128.40
Average Volume - Quarter 2,101,349 shares / day
NYSE - (GFI)
Range - Quarter US$15.84 - US$18.14
Average Volume - Quarter 3,616,958 shares / day
Key statistics
SOUTH AFRICAN RAND
Quarter
March December March
2010 2010 2011
Gold produced* 24,690 27,951 25,808 kg
Total cash cost 169,538 161,894 168,455 R/kg
Notional cash expenditure 241,860 243,506 245,326 R/kg
Tonnes milled/treated 14,263 14,498 14,458 000
Revenue 265,641 303,958 311,708 R/kg
Operating costs 334 348 343 R/tonne
Operating profit 2,570 4,240 4,091 Rm
Operating margin 35 46 46 %
NCE margin 9 20 21 %
316 (777) 1,100 Rm
Net earnings/(loss)
44 (110) 153 SA c.p.s.
292 (776) 1,101 Rm
Headline earnings/(loss)
41 (110) 153 SA c.p.s.
Net earnings excluding gains and
320 1,475 1,152 Rm
losses on foreign exchange,
financial
instruments, non-recurring
items and
45 206 160 SA c.p.s.
share of (loss)/profit of
associates
after royalties and taxation
UNITED STATES DOLLARS
Quarter
March December March
2011 2010 2010
Gold produced* oz (000) 830 898 793
Total cash cost $/oz 751 728 703
Notional cash expenditure $/oz 1,093 1,094 1,003
Tonnes milled/treated 000 14,458 14,498 14,263
Revenue $/oz 1,389 1,366 1,102
Operating costs $/tonne 49 50 44
Operating profit $m 586 610 344
Operating margin % 46 46 35
NCE margin % 21 20 9
$m 158 (106) 44
Net earnings/(loss)
US c.p.s. 22 (15) 6
$m 158 (106) 40
Headline earnings/(loss)
US c.p.s. 22 (15) 6
Net earnings excluding gains and
$m 165 211 44
losses on foreign exchange,
financial
instruments, non-recurring items
and
US c.p.s. 23 29 6
share of (loss)/profit 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 (71.1
per cent) and Cerro Corona in Peru (80.7 per cent).
Gold produced (and sales) throughout this report includes copper gold
equivalents of approximately 7 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.
Health and safety
We regret to report that five fatalities occurred at the South Africa region
during the quarter. Three accidents were engineering related and two were
mining related.
In comparison with the December quarter, the Group`s fatal injury frequency
rate regressed from 0.12 to 0.13. The lost day injury frequency rate improved
by 13 per cent from 4.32 to 3.76 and the days lost frequency rate improved by
12 per cent from 194 to 171. The serious injury frequency rate regressed by 22
per cent from 1.75 to 2.13. The recent trend in our fatality rate is deeply
concerning.
KDC again achieved one million fatality free shifts. The strategy of
engineering out the risk in the South Africa region and ensuring compliance to
standards and procedures continues to be core to improving the safety
environment of all our employees. The focus for next quarter is to reduce the
risk and number of tramming accidents. Compliance to standards is being driven
`top down` by management and supervisors with the help of technical experts.
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 injury at any time
following the injury.
Days Lost takes into account the number of days lost due to injuries recorded.
Serious Injury takes into account any injury where a person is defined as an
LDI but unable to return to work within 14 days of their injury occurring.
Financial review
Quarter ended 31 March 2011 compared with quarter ended 31 December 2010
Revenue
Attributable gold production decreased by 8 per cent from 898,000 ounces in
the December quarter to 830,000 ounces in the March quarter. At the South
African operations, production decreased by 15 per cent from 485,000 ounces to
411,000 ounces. Attributable gold production at the West African operations
increased by 2 per cent from 169,000 ounces to 173,000 ounces. Attributable
equivalent gold production at the South American operation increased by 14 per
cent from 76,000 ounces to 87,000 ounces. At the Australian operations, gold
production decreased by 7 per cent from 169,000 ounces to 158,000 ounces.
At the South Africa region, all of the operations were affected by the
customary Christmas break which typically impacts the March quarter. At KDC,
gold production decreased by 15 per cent from 310,600 ounces (9,661 kilograms)
in the December quarter to 262,600 ounces (8,169 kilograms) in the March
quarter. At Beatrix gold production decreased by 25 per cent from 99,000
ounces (3,080 kilograms) to 74,400 ounces (2,314 kilograms) mainly due to the
combined effects of the Christmas break and safety related stoppages. At South
Deep, production decreased by 2 per cent from 75,500 ounces (2,349 kilograms)
to 74,000 ounces (2,301 kilograms).
At the West Africa region, managed gold production at Tarkwa increased by 5
per cent to 186,100 ounces for the quarter mainly due to increased CIL
throughput and head grade. At Damang, gold production decreased by 5 per cent
from 60,400 ounces to 57,500 ounces due to lower mining volumes from the
higher grade Damang pit cutback.
At the South America region, production at Cerro Corona increased by 15 per
cent from 93,700 equivalent ounces in the December quarter to 108,100
equivalent ounces in the March quarter. This was as a result of increased
plant throughput, higher gold head grade and an increase in metal recoveries.
At the Australasia region, Agnew`s gold production decreased by 14 per cent to
37,900 ounces. Production was impacted by a once off paste fill cement
consistency issue. At St Ives, gold production decreased by 4 per cent from
125,100 ounces to 120,500 ounces due mainly to a decrease in mined grade.
The average quarterly US dollar gold price achieved increased from US$1,366
per ounce in the December quarter to US$1,389 per ounce in the March quarter.
The average rand/US dollar exchange rate at R6.98 was marginally weaker than
the December quarter level of R6.92 while the average Australian dollar
achieved parity with the US dollar rising 2 per cent during the quarter. The
resultant rand gold price increased from R303,958 per kilogram to R311,708 per
kilogram.
Revenue decreased from R9,255 million (US$1,334 million) in the December
quarter to R8,969 million (US$1,285 million) in the March quarter due to the
lower production, partly offset by the higher gold price received.
Operating costs
Net operating costs decreased from R5,015 million (US$724 million) in the
December quarter to R4,878 million (US$699 million) in the March quarter.
Despite the lower production and inherently high fixed cost structure, total
cash cost increased by only 4 per cent from R161,894 per kilogram (US$728 per
ounce) to R168,455 per kilogram (US$751 per ounce).
At the South Africa region, operating costs decreased by 6 per cent from
R2,964 million (US$428 million) to R2,783 million (US$399 million) mainly due
to cost saving initiatives as well as lower electricity charges. Total cash
cost at the South African operations increased by 10 per cent from R194,115
per kilogram (US$872 per ounce) to R213,759 per kilogram (US$953 per ounce)
due to the decrease in production partially offset by the decrease in
operating costs.
At the West Africa region, operating costs including gold-in-process
movements, decreased by 12 per cent from US$139 million (R960 million) in the
December quarter to US$122 million (R851 million) in the March quarter mainly
due to a higher gold-in-process credit in the March quarter. Total cash cost
at the West African operations decreased from US$540 per ounce in the December
quarter to US$521 per ounce in the March quarter.
At Cerro Corona in South America, operating costs including gold-in- process
movements increased from US$37 million (R252 million) to US$44 million (R305
million). The increase was mainly due to an increase in sales and distribution
costs and an increase in the statutory workers legal participation in profits
in line with the higher earnings. Total cash cost decreased from US$449 per
ounce in the December quarter to US$387 per ounce in the March quarter due to
the higher gold sales partially offset by increased operating costs.
At the Australasia region, operating costs including gold-in-process movements
increased from A$124 million (R840 million) to A$134 million (R940 million).
This was mainly due to a draw-down of inventory to supplement production.
Total cash cost for the region increased from A$731 per ounce (US$719 per
ounce) to A$835 per ounce (US$838 per ounce).
Operating margin
The net effect of the changes in revenue and costs, after taking into account
gold-in-process movements, was a 4 per cent decrease in operating profit from
R4,240 million (US$610 million) in the December quarter to R4,091 million
(US$586 million) in the March quarter. The Group operating margin at 46 per
cent was similar to the December quarter. The margin at the South African
operations decreased from 35 per cent to 30 per cent. At the West African
operations the margin increased from 57 per cent to 64 per cent. At Cerro
Corona in South America the margin was similar at 72 per cent, while at the
Australian operations the margin decreased from 47 per cent to 39 per cent.
Amortisation
Amortisation decreased from R1,334 million (US$193 million) in the December
quarter to R1,240 million (US$178 million) in the March quarter, in line with
the lower production.
Other
Net interest paid of R41 million (US$6 million) in the March quarter compares
with net interest paid of R65 million (US$9 million) in the December quarter.
In the March quarter interest paid of R116 million (US$17 million) was partly
offset by interest received of R55 million (US$8 million) and interest
capitalised of R20 million (US$3 million). This compares with interest paid of
R140 million (US$20 million), partly offset by interest received of R56
million (US$8 million) and interest capitalised of R19 million (US$3 million)
in the December quarter.
The share of loss of associates after taxation of R4 million (US$1 million) in
the March quarter compares with a gain of R11 million (US$1 million) in the
December quarter. The March quarter`s loss relates to the Group`s 34.9 per
cent interest in Rand Refinery. The December quarter included a R7 million
(US$1 million) translation adjustment on Rusoro and a R4 million (US$0
million) gain from Rand Refinery.
The gain on foreign exchange of R3 million (US$0 million) in the March quarter
compares with R1 million (US$0 million) in the December quarter. These
exchange differences relate to the conversion of offshore cash holdings into
their functional currencies.
The gain on financial instruments of R6 million (US$1 million) in the March
quarter, compares with R10 million (US$1 million) in the December quarter.
These gains related to positive valuations of listed warrants.
Share based payments of R122 million (US$18 million) were R48 million (US$7
million) higher than the December quarter`s R74 million (US$11 million) due to
period-end forfeiture adjustments in the December quarter.
Other costs decreased from R80 million (US$11 million) in the December quarter
to R76 million (US$11 million) in the March quarter.
Exploration
Exploration expenditure decreased from R223 million (US$32 million) in the
December quarter to R139 million (US$20 million) in the March quarter
attributable primarily to:
- a decrease in expenditure at Far South East (FSE) of R28 million (US$4
million) related to timing of expenditure. Expenditure for the quarter
amounted to R17 million (US$2 million); and
- expenditure at Chucapaca which amounted to R85 million (US$12 million) in
the March quarter and was capitalised as it reached pre-feasibility stage
compared with expenditure of R48 million (US$7 million) in the December
quarter which was expensed.
Refer to the exploration and corporate development section of this report for
more detail on exploration activities.
Feasibility and evaluation costs
In the March quarter feasibility and evaluation costs amounted to R27 million
(US$4 million) all of which was spent on the Far South East (FSE) project in
the Philippines, as the other feasibility studies have reached the stage where
they are being capitalised. This compares with R66 million (US$9 million) in
the December quarter of which R43 million (US$6 million) was incurred at
Chucapaca (all costs on this project have been capitalised from this quarter)
and R23 million (US$3 million) which was incurred at the FSE project.
Non-recurring items
The non-recurring items in the March quarter of R83 million (US$12 million)
were mainly due to voluntary separation packages of R29 million (US$4 million)
and business process re-engineering and restructuring costs of R53 million
(US$8 million) at all our operations. The non-recurring items in the December
quarter of R2,329 million (US$327 million) were mainly as a result of a series
of empowerment transactions which included 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),
share-based payments for the GFIMSA transaction of R73 million (US$10
million), voluntary separation packages of R95 million (US$13 million) and
business process re-engineering and restructuring costs of R84 million (US$12
million) at all our operations.
Royalties
Government royalties increased from R92 million (US$14 million) in the
December quarter to R165 million (US$24 million) in the March quarter. The
higher royalty payment in the March quarter was due to the once-off royalty
credit adjustment at the Ghanaian operations in the December quarter.
Taxation
Taxation for the quarter amounted to R780 million (US$112 million) compared
with R561 million (US$81 million) in the December quarter.
Normal taxation decreased from R680 million (US$97 million) to R600 million
(US$86 million). Deferred taxation moved from a credit of R119 million (US$16
million) in the December quarter to a charge of R180 million (US$26 million)
in the March quarter. This movement was due to a R377 million (US$53 million)
credit to deferred taxation as a result of a decrease in the deferred taxation
rate at the South African mining operations in the December quarter.
Earnings
Net earnings attributable to ordinary shareholders amounted to R1,100 million
(US$158 million) or 153 SA cents per share (US$0.22 per share), compared with
a net loss of R777 million (US$106 million) or 110 SA cents per share (US$0.15
per share) in the December quarter.
Headline earnings i.e. earnings excluding the after tax effect of asset sales,
impairments and the sale of investments, amounted to R1,101 million (US$158
million) or 153 SA cents per share (US$0.22 per share), compared with headline
losses of R776 million (US$106 million) or 110 SA cents per share (US$0.15 per
share) in the December 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 R1,152 million (US$165 million) or 160 SA
cents per share (US$0.23 per share), compared with earnings of R1,475 million
(US$211 million) or 206 SA cents per share (US$0.29 per share) reported in the
December quarter.
Cash flow
Cash inflow from operating activities for the quarter amounted to R2,783
million (US$398 million), compared with R3,889 million (US$557 million) in the
December quarter. This quarter on quarter decrease of R1.1 billion (US$159
million) was mainly due to the movements in working capital. The build-up of
working capital of R291 million (US$42 million) in the March quarter compares
with a release of working capital of R802 million (US$109 million) in the
December quarter due to a short term build-up of accounts receivable
associated mainly with the timing of concentrate sales.
In the March quarter dividends of R506 million (US$73 million) were paid to
owners of the parent and R59 million (US$9 million) were paid to non-
controlling interest holders at Damang. This compared with R149 million (US$20
million) in the December quarter all paid to non-controlling shareholders at
La Cima and Damang.
Capital expenditure decreased from R2,414 million (US$347 million) in the
December quarter to R2,069 million (US$296 million) in the March quarter.
At the South Africa region, capital expenditure decreased from R1,257 million
(US$182 million) in the December quarter to R995 million (US$143 million) in
the March quarter mainly due to timing of expenditure. Capital expenditure at
South Deep amounted to R411 million (US$59 million) in the March quarter
compared with R511 million (US$74 million) in the December quarter, with the
majority of the expenditure on development and the ventilation shaft deepening
and infrastructure. Expenditure on ore reserve development (ORD) at KDC and
Beatrix was R12 million less at R473 million. KDC`s ORD decreased from R387
million to R380 million and Beatrix`s ORD decreased from R98 million to R93
million quarter on quarter.
At the West Africa region, capital expenditure decreased from US$99 million to
US$84 million due to a reduction in expenditure on mining fleet and equipment
at Damang, as the owner mining project is nearing completion. In South
America, at Cerro Corona, capital expenditure decreased from US$20 million to
US$17 million.
At the Australasia region, capital expenditure decreased from A$44 million to
A$39 million for the quarter. At Agnew, capital expenditure decreased from
A$16 million to A$15 million. St Ives decreased from A$28 million to A$24
million with A$8 million spent on exploration and the balance on mine
development.
Buy-out of non-controlling interest holders at La Cima amounted to R1,368
million (US$198 million) and related to the buy-out of 127.9 million shares
representing 9 per cent of the issued shares of Gold Fields La Cima taking the
Group`s holding up to 89.7 per cent at quarter end. Income associated with
this buy-out will be accounted for from the June quarter.
Proceeds on the disposal of investments of R12 million (US$2 million) relates
to a loan repayment from one of the Group`s mining contractors at St Ives.
Net cash inflow from financing activities in the March quarter amounted to
R2.3 billion (US$330 million). Loans received in the March quarter amounted to
R3.2 billion (US$458 million) mainly as a result of a draw-down on an offshore
facility. Loans repaid amounted to R950 million (US$136 million), consisting
primarily of R735 million (US$105 million) of the South African commercial
paper programme and a partial repayment of the non-recourse term loan at Cerro
Corona of R69 million (US$10 million).
Net cash inflow for the March quarter at R1,074 million (US$154 million)
compared with R1,177 million (US$172 million) in the December quarter. After
accounting for a positive translation adjustment of R66 million (negative US$9
million) on offshore cash balances, the net cash inflow for the March quarter
was R1,139 million (US$145 million). The cash balance at the end of March was
R6,603 million (US$954 million) compared with R5,464 million (US$810 million)
at the end of December.
Notional cash expenditure (NCE)
Notional cash expenditure is defined as operating costs (including general and
administration) plus capital expenditure, which includes brownfields
exploration, and is reported on a per kilogram and per ounce basis - refer to
the detailed table on page 24 of this report.
NCE per ounce influences how much free cash flow is available in order to pay
taxation, interest, greenfields exploration, feasibility projects and
dividends.
NCE margin is defined as the difference between revenue per ounce and NCE per
ounce expressed as a percentage.
The Group NCE for the March quarter amounted to R245,326 per kilogram
(US$1,093 per ounce) compared with R243,506 per kilogram (US$1,094 per ounce)
in the December quarter. The NCE margin for the Group improved from 20 per
cent to 21 per cent.
At the South Africa region, NCE increased from R279,715 per kilogram (US$1,257
per ounce) to R295,494 per kilogram (US$1,317 per ounce). The NCE margin of 5
per cent in the March quarter compares with 7 per cent in the December
quarter. The lower margin was due to the decrease in production partially
offset by lower operating costs and lower capital expenditure. The overall NCE
margin is impacted by the funding of South Deep. The NCE excluding South Deep
increased from R252,202 per kilogram (US$1,134 per ounce) in the December
quarter to R272,250 per kilogram (US$1,213 per ounce) in the March quarter.
The NCE margin excluding South Deep was 13 per cent in the March quarter
compared with 16 per cent in the December quarter.
At the West Africa region, NCE decreased from US$1,009 per ounce to US$938 per
ounce and the NCE margin increased from 26 per cent to 32 per cent due to the
higher production and lower capital expenditure.
At the South America region, NCE decreased from US$650 per ounce in the
December quarter to US$537 per ounce in the March quarter due to the increased
production and decreased capital expenditure. The NCE margin increased from 54
per cent to 61 per cent.
At the Australasia region, NCE increased from A$986 per ounce (US$970 per
ounce) in the December quarter to A$1,035 per ounce (US$1,038 per ounce) in
the March quarter due to the decreased production resulting in an NCE margin
of 26 per cent compared with 29 per cent in the December quarter.
Balance sheet (Investments and net debt)
Investments decreased from R1,079 million (US$160 million) at 31 December 2010
to R1,022 million (US$148 million) at 31 March 2011. This was mainly due to
Mvela Resources unbundling the 856,330 shares held back to Gold Fields. The
Group reclassified these shares as Treasury shares which are accounted for
under shareholders equity.
The cash balance increased from R5,464 million (US$810 million) at the end of
the December quarter to R6,603 million (US$954 million) at the end of the
March quarter.
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 the
December quarter to R5,269 million (US$761 million) in the March quarter, as a
result of borrowings incurred to fund the buy- out of minority shareholders in
La Cima.
Detailed and operational review
Cost and revenue optimisation initiatives through Business Process Re-
engineering
The Business Process Re-engineering programme (BPR) commenced during the
second half of calendar 2010. The BPR involves a review of the mines`
underlying organisational structures as well as the operational production
processes from the stope to the mill. The objective is to introduce a new
business blueprint, together with an appropriate organisational structure,
which will support sustainable gold output at an NCE margin of 20 per cent in
the short to medium term and 25 per cent in the longer term.
South Africa region
The BPR underpins the suite of M projects which was established during
financial 2008 for delivering optimised cost and revenue results over a three
year period.
Stoping full potential (Project 1M)
Project 1M is a productivity initiative that aims to improve quality mining
volumes by increasing the face advance by between 5 and 10 per cent per annum.
The BPR Stoping full potential project aims to enable the delivery of full
potential at every workface by introducing standardised reporting and
practices and eliminating constraints.
The BPR Stoping full potential, amongst others, aims to leverage advance per
blast to drive quality-volume and address the key constraints which affect
productivity on a shaft by shaft basis, including effective face times,
logistics in-flow and out-flow models and mining cycles.
This is being achieved through the following key improvement initiatives:
- Implementation of a daily performance management routine and a suite of
tools to minimise lost blasts;
- Acceleration of efforts to equip panels to improve flexibility and face
length;
- Implementing improved planning and scheduling on a rolling 18 month basis
for each panel;
- Optimising availability of in-stope workers through new labour management
processes; and
- Addressing shaft specific key infrastructural and engineering constraints
such as ventilation, hoisting-and shaft schedules, and winch management and
repairs.
Average face advance regressed from 6.7 metres to 6.1 metres in the March
quarter due to the impact of the Christmas break. Focus continued on safety,
improvement of flexibility and panel availability factors.
Developing full potential (Project 2M)
Project 2M 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.
For the March quarter, 86 per cent of flat-end metres were advanced by
mechanised means at the long-life shafts of KDC and Beatrix compared with 74
per cent in the December quarter. This improvement was largely achieved by
increasing the efficiency of the rigs.
NCE full potential (Project 3M)
Project 3M focuses on optimised spend in specified categories. The BPR NCE
full potential project focuses on all categories of spend. The first phase of
the BPR initiatives, which commenced in the second half of calendar 2010 in
South Africa and included the merger of the Kloof and Driefontein operations,
now known as KDC, was concluded at the end of December 2010.
In the second phase of the project, targeted cost reductions of between R500
million (US$68 million) and R1.0 billion (US$137 million) have been scheduled
for KDC and Beatrix for the period to December 2012. These cost saving
initiatives are proposed to be achieved through various programmes which
include, amongst others, productivity improvement initiatives, continued
reduction in staff through natural attrition and voluntary severance and power
cost savings initiatives. This will help to absorb some of the inflationary
pressures faced in terms of input costs.
A key priority is a fit for purpose structure at South Deep which is:
- consistent with the new regional structure and principles; appropriate for
the ramp-up; and
- customised for bulk trackless mechanised mining.
The completion of this work is a key deliverable for 2011.
Our intent with BPR in 2011 is to mitigate as much of the anticipated mining
inflation increases as possible. Cost reductions of R87 million were achieved
in the March quarter, resulting in inception to date savings of R260 million
since the initiative started around the middle of 2010. These savings were
mainly achieved by changing to a more cost effective support regime, a
reduction in staff through natural attrition and the voluntary separation
programme, a reduction in non- specialised contractors and power cost saving
initiatives.
Project 4M
Project 4M focuses on the Mine Health and Safety Council (MHSC) milestones
agreed to on 15 June 2003 at a tripartite health and safety summit, comprising
representatives from Government, organised labour and mining companies. The
focus is on achieving occupational health and safety targets and milestones
over a 10-year period. The commitment was driven by the need to achieve
greater improvements in occupational health and safety in the mining industry.
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 and enforcing the use of personal protective equipment.
The number of measurements expressed as a percentage of noise measurements of
machinery/equipment emitting noise in excess of 110dB(A) is currently 4.7 per
cent. Silencing of equipment is ongoing and each intervention is project
managed.
Silicosis remains one of the biggest health risks associated with the gold
mining industry. In order to meet the silicosis targets the company has
several interventions in place, which include:
- the upgrading of tip filters by either replacing complete unit installations
or installing additional first stage pre-filtration systems to increase dust
filtration efficiency by removing larger particles of dust before they enter
the primary dust filtration unit (94 per cent implementation to date across
the South African region);
- the use of foggers to trap dust particles liberated from tipping points
before dust enters the main air stream (83 per cent implementation to date
across the South African region);
- footwall treatment to bind dust on the footwall and prevent it from being
liberated into the intake air ways (100 per cent implementation to date across
the South African region); and
- installation of tip doors. The tip doors are installed into the tipping
points and remain closed when no tipping is taking place, thus reducing dust
from entering the intake airways. The tip doors being spring loaded are self-
closing once tipping is completed (54 per cent implementation to date across
the South African region).
It must be noted that although the footwall treatment was completed in all
identified areas, periodic retreatment is required to maintain effectiveness.
Of the individual gravimetric dust sample measurements taken during the March
quarter, 98 per cent were below the occupational exposure limit of 0.1
milligrams per cubic metre, thus meeting the target of not less than 95 per
cent of individual samples below the occupational exposure limit of 0.1
milligrams per cubic metre.
In March 2011, the South African Constitutional Court ruled that legislation
which limited employees` rights to claim compensation for certain diseases
including silicosis was unconstitutional. As a result, the Court found that
employees had the right to sue employers for common law damages to the extent
that such employees could prove that they had suffered loss as a result of the
negligence of the employer and such loss could be quantified. The potential
impact to the Group is being assessed. In addition, we are reviewing our
current processes to determine what additional measures can be taken to
further mitigate the risks to employees of contracting silicosis.
West Africa region
Tarkwa
Focus during the quarter was directed at productivity improvements, cost
reductions through consumption improvement and price reductions in the areas
of mining, processing and maintenance. Productivity improvements contributed
to a record production quarter in the CIL process plant. The BPR delivered
US$4 million for the quarter; US$2 million in throughput benefits and US$2
million in owner maintenance. Contract waste mining across the site was
suspended towards the end of the quarter and replaced with full owner
operation. Focus for the June quarter is directed at improving gold production
by debottlenecking existing processing plants with the commissioning of three
new larger tertiary crushers at the North Heap leach facility together with
initiatives to reduce downtime at all the crushing and process circuits.
Implementation of initiatives in global sourcing of grinding media, re-
negotiation of maintenance and repair contracts (MARC) and consolidation of
earth works contracts on site is expected to reduce operating costs by US$6
million per annum. BPR is also focused on improving mining efficiencies,
optimising the mining fleet and improving controls around fuel consumption.
Damang
The first phase of the business process re-engineering project was completed
with the conversion from contractor mining to owner operation and owner
maintenance which was completed on 24 March 2011. During the quarter owner
mining commenced in the satellite pits and benefits of US$2 million were
achieved, with full benefits expected to be realised in the June 2011 quarter.
Focus for the June quarter is directed at the implementation of phase 2 of the
business process re-engineering, which encompasses maximising the full
benefits from owner mining and duplicating the business process re-engineering
initiatives implemented at Tarkwa.
Australasia region
Agnew
Following the introduction of owner mining, productivity consultants have
assisted in reviewing the short term interval controls thereby improving the
tonnes trucked from underground. Agnew also replaced the MARC with owner
maintenance of the production mining fleet which will improve equipment
availability and reduce costs. The remainder of 2011 will see the
consolidation of the improvements made with continued training of front line
supervisors in short term interval control and focus on key production issues.
In the process plant, an upgrade to the gravity plant will be installed and
commissioned over the next two quarters, resulting in improvements to recovery
and process efficiencies by the end of the third quarter of 2011.
St Ives
BPR at St Ives is focused on high value business improvement opportunities
with the potential to generate A$25 million in benefits per annum. The
improvement of short term interval controls in all areas has resulted in
measurable improvement especially in the Heap leach plant where daily
throughput has been increased. Other opportunities are in implementation phase
with an expectation that many of these will transition to cash flow status in
the June quarter.
A key BPR initiative at St Ives has been the optimisation study of the entire
mine and process stream by outside specialists. The results of this
optimisation are currently being analysed and assessed and key improvements
will be introduced into life of mine plans and operational strategies. Part of
this work is to also investigate the heap leach verses milling mix and what
opportunity exists to improve throughput and efficiencies. St Ives also
intends to move towards an owner operated model whereby the site has less
reliance on contractors in key areas. This strategy is being implemented
during 2011 and 2012 as contracts expire.
South Africa region
KDC
March December
2011 2010
Gold produced - 000`oz 262.6 310.6
- kg 8,169 9,661
Yield - underground - g/t 6.6 6.6
- combined - g/t 3.2 3.8
Total cash cost - R/kg 206,916 191,088
- US$/oz 922 859
Notional cash expenditure - R/kg 264,341 253,286
- US$/oz 1,178 1,138
NCE margin -% 15 16
Gold production decreased from 310,600 ounces (9,661 kilograms) in the
December quarter to 262,600 ounces (8,169 kilograms) in the March quarter due
to lower volumes mined because of the Christmas break and a decline in the
average mine call factor. Production in the quarter was negatively impacted by
various safety stoppages, adverse environmental conditions and engineering
related issues which have contributed to the lower mine call factor due to
underground ore accumulations.
Underground tonnes milled decreased from 1.35 million tonnes in the December
quarter to 1.09 million tonnes in the March quarter directly as a result of
the lower volumes mined exacerbated by the lower mine call factor. Underground
yield at 6.6 grams per tonne was similar to the previous quarter. Surface
tonnes milled increased from 1.18 million tonnes to 1.44 million tonnes due to
higher volumes treated during the Christmas break. Surface yield remained
constant at 0.7 grams per tonne.
Main development decreased by 4 per cent from 11,976 metres to 11,545 metres
while on-reef development increased by 16 per cent from 2,057 metres to 2,378
metres. The average development value increased from 1,868 centimetre grams
per tonne in the December quarter to 2,257 centimetre grams per tonne in the
March quarter.
Operating costs decreased from R1,861 million (US$269 million) to R1,721
million (US$247 million). This decrease was mainly due to cost saving
initiatives and a decrease in employees in service, together with lower
electricity charges and a decrease in stores cost due to the lower production.
Total cash cost for the quarter increased by 8 per cent from R191,088 per
kilogram (US$859 per ounce) in the December quarter to R206,916 per kilogram
(US$922 per ounce) in the March quarter.
Operating profit decreased from R1,057 million (US$152 million) in the
December quarter to R826 million (US$118 million) in the March quarter.
Capital expenditure decreased from R586 million (US$85 million) to R439
million (US$63 million) mainly due to timing of spend on various projects.
Notional cash expenditure increased from R253,286 per kilogram (US$1,138 per
ounce) in the December quarter to R264,341 per kilogram (US$1,178 per ounce)
in the March quarter mainly as a result of the lower gold produced. The NCE
margin decreased from 16 per cent to 15 per cent.
Beatrix
March December
2011 2010
Gold produced - 000`oz 74.4 99.0
- kg 2,314 3,080
Yield - underground - g/t 4.4 4.4
- combined - g/t 2.5 3.0
Total cash cost - R/kg 232,411 192,630
- US$/oz 1,036 866
Notional cash expenditure - R/kg 300,173 248,799
- US$/oz 1,338 1,118
NCE margin -% 4 17
Gold production decreased from 99,000 ounces (3,080 kilograms) in the December
quarter to 74,400 ounces (2,314 kilograms) in the March quarter. The lower
production was mainly due to the Christmas break and safety related stoppages.
The safety stoppages and interruptions due to equipment failures contributed
to a lower mine call factor due to underground ore accumulations.
Underground tonnes milled decreased from 666,000 tonnes to 499,000 tonnes,
while the underground yield remained constant at 4.4 grams per tonne. Surface
tonnes milled increased from 362,000 tonnes to 409,000 tonnes due to higher
volumes treated during the Christmas break. Surface yield decreased from 0.4
grams per tonne to 0.3 grams per tonne.
Main development decreased from 6,191 metres in the December quarter to 5,135
metres in the March quarter as planned. The on-reef development decreased from
1,622 metres to 1,495 metres and the average main development value increased
from 1,044 centimetre grams per tonne in the December quarter to 1,121
centimetre grams per tonne in the March quarter, mainly due to the value
variability of the zones being developed.
Operating costs decreased from R606 million (US$88 million) in the December
quarter to R549 million (US$79 million) in the March quarter. This decrease
was mainly due to lower production volumes and cost saving initiatives. Total
cash cost increased from R192,630 per kilogram (US$866 per ounce) to R232,411
per kilogram (US$1,036 per ounce) due to the lower production.
Operating profit decreased from R322 million (US$46 million) in the December
quarter to R174 million (US$25 million) in the March quarter.
Capital expenditure decreased from R160 million (US$23 million) to R145
million (US$21 million) with the majority spent on infrastructure upgrades,
the methane exploitation CDM (Clean Development Mechanism) project and ore
reserve development.
Notional cash expenditure increased from R248,799 per kilogram (US$1,118 per
ounce) in the December quarter to R300,173 per kilogram (US$1,338 per ounce)
in the March quarter due to the lower production. The NCE margin decreased
from 17 per cent to 4 per cent.
South Deep project
March December
2011 2010
Gold produced - 000`oz 74.0 75.5
- kg 2,301 2,349
Yield - underground - g/t 5.7 5.1
- combined - g/t 4.0 3.9
Total cash cost - R/kg 219,296 208,514
- US$/oz 977 937
Notional cash expenditure - R/kg 401,391 428,948
- US$/oz 1,789 1,928
NCE margin -% (28) (42)
Gold production at South Deep decreased from 75,500 ounces (2,349 kilograms)
in the December quarter to 74,000 ounces (2,301 kilograms) in the March
quarter. This marginal decrease in production was largely due to the Christmas
break. A mechanised mining record of 170,000 reef tonnes broken was achieved
in the month of March, primarily due to increased production from long-hole
stoping and benching, which contributed towards ameliorating the impact of the
Christmas break.
Underground ore processed decreased from 442,000 tonnes in the December
quarter to 387,000 tonnes in the March quarter. Total tonnes milled, which
included 108,000 tonnes from surface sources and 83,000 tonnes of off-reef
development, decreased from 606,000 tonnes in the December quarter to 578,000
tonnes in the March quarter. Underground yield increased from 5.1 grams per
tonne in the December quarter to 5.7 grams per tonne in the March quarter.
This was mainly due to increased production from the higher grade 95 3 West
area.
Development decreased from 3,096 metres to 2,842 metres in the March quarter.
The new mine capital development in phase 1, sub 95 level, decreased by 3 per
cent from 908 metres in the March quarter to 882 metres in the December
quarter. Development in the current mine areas above 95 level decreased from
1,987 metres to 1,699 metres. All development, both above and below 95 level,
declined quarter on quarter as a consequence of the Christmas break. Vertical
development increased from 201 metres in the December quarter to 261 metres in
the March quarter. De-stress mining decreased from 6,975 square metres in the
December quarter to 4,987 square metres in the March quarter also as a result
of the Christmas break.
Operating costs increased from R497 million (US$72 million) in the December
quarter to R512 million (US$73 million) in the March quarter. This increase
was mainly due to overtime worked to limit the loss in production due to the
Christmas break and due to major maintenance work. In addition, labour cost
for the December quarter was lower than normal due to the impact of the no-
work-no-pay rule applied during the strike. Total cash cost increased from
R208,514 per kilogram (US$937 per ounce) to R219,296 per kilogram (US$977 per
ounce).
Operating profit decreased by 3 per cent from R214 million (US$31 million) in
the December quarter to R207 million (US$30 million) in the March quarter.
Capital expenditure decreased from R511 million (US$74 million) in the
December quarter to R411 million (US$59 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, as well as
construction of the new tailings dam facility.
Notional cash expenditure decreased from R428,948 per kilogram (US$1,928 per
ounce) in the December quarter to R401,391 per kilogram (US$1,789 per ounce)
in the March quarter due to lower capital expenditure.
West Africa region
Ghana
Tarkwa
March December
2011 2010
Gold produced - 000`oz 186.1 176.6
Yield - heap leach - g/t 0.5 0.5
- CIL plant - g/t 1.5 1.4
- combined - g/t 1.0 1.0
Total cash cost - US$/oz 464 517
Notional cash expenditure - US$/oz 871 893
NCE margin -% 37 35
Gold production increased from 176,600 ounces in the December quarter to
186,100 ounces in the March quarter. The higher production was as a result of
increased CIL throughput and head grade.
Total tonnes mined, including capital stripping, decreased from 32.9 million
tonnes in the December quarter to 29.3 million tonnes in the March quarter.
Productivity was affected by diverting mining fleet from the pits to supply
waste material for the construction of the new Tailings Storage Facility. Ore
mined at 5.5 million tonnes and mined grade at 1.24 grams per tonne was
similar to the previous quarter. The strip ratio reduced from 4.86 in the
December quarter to 4.36 in the March quarter. Contract waste mining across
the site has been replaced with full owner operation.
The total feed to the CIL plant increased from 2.85 million tonnes in the
December quarter to 2.94 million tonnes in the March quarter. Yield from the
CIL plant increased from 1.4 grams per tonne to 1.5 grams per tonne. The CIL
plant produced a record 138,500 ounces in the March quarter compared with
126,800 ounces in the December quarter.
Total feed to the heap leach decreased from 2.90 million tonnes to 2.86
million tonnes. The heap leach process yield decreased from 0.53 grams per
tonne to 0.52 grams per tonne. The "High Pressure Grinding Roller" (HPGR) unit
at the South heap leach processed 0.87 million tonnes, compared with 0.84
million tonnes in the December quarter. The HPGR tonnes are included in the
total feed tonnes to the heap leach. The heap leach process produced 47,600
ounces, compared with 49,800 ounces in the December quarter. The shortfall was
attributable to a decrease in gold placed on the heaps and flow delays through
multiple lifts.
Operating costs, including gold-in-process movements, decreased from US$101
million (R695 million) in the December quarter to US$83 million (R576 million)
in the March quarter. This was mainly due to a higher gold-in-process credit
in the March quarter partly offset by higher fuel and power prices. Total cash
cost decreased from US$517 per ounce in the December quarter to US$464 per
ounce in the March quarter, mainly as a result of increased production and the
higher credit to gold-in-process.
Operating profit increased from US$141 million (R977 million) to US$175
million (R1,219 million).
Capital expenditure increased from US$56 million (R384 million) in the
December quarter to US$57 million (R396 million) in the March quarter, with
new mining equipment, the tailings dam expansion and pre-stripping being the
major items.
Notional cash expenditure decreased from US$893 per ounce to US$871 per ounce
due to increased production. The NCE margin increased from 35 per cent to 37
per cent.
Damang
March December
2011 2010
Gold produced - 000`oz 57.5 60.4
Yield - g/t 1.4 1.5
Total cash cost - US$/oz 703 608
Notional cash expenditure - US$/oz 1,154 1,349
NCE margin -% 17 2
Gold production decreased from 60,400 ounces in the December quarter to 57,500
ounces in the March quarter, as a result of lower mining volumes from the high
grade Damang pit cutback (DPCB). This was due to partial sterilisation of the
pit floor while mining the East ramp which will allow access to additional ore
supply from the end of the year by increasing the pit floor area. Due to
safety reasons mining of the high grade ore zone in the DPCB was restricted as
concurrent mining of the ramp on the Eastern high wall and mining of the pit
floor cannot take place simultaneously. As a consequence, lower grade material
was fed to the plant during the quarter which resulted in a lower yield.
Mining of the ramp will continue to constrain production by approximately 5 to
10 per cent until the end of the year.
Total tonnes mined, including capital stripping, increased from 3.3 million
tonnes in the December quarter to 5.1 million tonnes in the March quarter. The
increase in tonnes mined is a requirement for exposing long term ore reserves
and delivery of fresh ore to the mill. Ore mined increased from 1.1 million
tonnes to 1.3 million tonnes. The total strip ratio, including capital strip
was 3.1 compared with the previous quarter`s 2.0. The replacement of
contractor mining with owner mining was completed by the end of March. owner
mining was substantially completed by the end of March.
Tonnes processed at 1.25 million tonnes were similar to the December quarter.
The yield decreased from 1.5 grams per tonne to 1.4 grams per tonne mainly
due to a reduction in mining volumes from the DPCB as described earlier.
Operating costs, including gold-in-process movements, increased from US$38
million (R264 million) in the December quarter to US$39 million (R274 million)
in the March quarter mainly due to increased power and fuel costs. Total cash
cost increased from US$608 per ounce to US$703 per ounce mainly as a result of
the decreased production and increased costs.
Operating profit decreased from US$45 million (R310 million) in the December
quarter to US$40 million (R280 million) in the March quarter.
Capital expenditure decreased from US$43 million (R305 million) to US$27
million (R187 million) mainly as a result of the owner mining project reaching
completion. Capital expenditure on the owner mining project amounted to US$8
million (R56 million) in the March quarter compared with US$35 million (R242
million) in the December quarter. Since inception US$51 million has been spent
on owner mining with US$4 million required on remaining equipment. The project
was completed on time and total expenditure was in line with the plan.
Notional cash expenditure decreased from US$1,349 per ounce in the December
quarter to US$1,154 per ounce in the March quarter. The NCE margin increased
from 2 per cent to 17 per cent due to the lower capital expenditure.
South America region
Peru
Cerro Corona
March December
2011 2010
Gold produced - 000`oz 40.6 34.6
Copper produced - tonnes 9,685 9,474
Total equivalent gold produced - 000` eq oz 108.1 93.7
Total equivalent gold sold - 000` eq oz 112.2 87.5
Yield - gold - g/t 0.8 0.8
- copper -% 0.64 0.66
- combined - g/t 2.1 1.9
Total cash cost - US$/eq oz 387 449
Notional cash expenditure - US$/eq oz 537 650
NCE margin -% 61 54
Gold price * - US$/oz 1,383 1,361
Copper price * - US$/t 9,648 8,516
* Average daily spot price for the period used to calculate total equivalent
gold ounces produced.
Gold produced increased from 34,600 ounces in the December quarter to 40,600
ounces in the March quarter. Copper production increased from 9,474 tonnes to
9,685 tonnes. Concentrate sold contained a payable content of 42,150 gold
ounces and 10,170 tonnes of copper with average prices of US$1,379 per ounce
of gold and US$9,021 per tonne of copper respectively, net of treatment and
refining charges.
The higher gold and copper production in the March quarter was due to a 6 per
cent increase in ore processed (1.58 million tonnes compared with 1.50 million
tonnes), a higher gold head grade (1.26 grams per tonne compared with 1.18
grams per tonne) and an increase in metal recoveries. Gold metal recoveries
improved from 63.2 per cent to 65.7 per cent and copper improved marginally
from 82.0 per cent to 82.5 per cent, mainly driven by a higher quality of
material mined during the March quarter. This was partly offset by a decrease
in copper head grade (0.80 per cent to 0.77 per cent).
Total tonnes mined increased from 3.01 million tonnes in the December quarter
to 3.29 million tonnes in the March quarter. Ore mined at 1.67 million tonnes
was 11 per cent higher than the 1.50 million tons mined in the December
quarter, reflecting the higher plant availability and tonnage treated. The
strip ratio for the March quarter was 0.97, down from 1.00 in the previous
quarter.
Gold yield for the March quarter was similar to the December quarter at 0.80
grams per tonne, while copper yield was 0.64 per cent compared with 0.66 per
cent in the December quarter. Equivalent gold yield increased from 1.9 grams
per tonne to 2.1 grams per tonne.
Operating costs, including gold-in-process movements, increased from US$37
million (R252 million) in the December quarter to US$44 million (R305 million)
in the March quarter, mainly due to a concentrate inventory reduction of 2,900
tonnes, an increase in infill drilling, higher sales and distribution costs
due to higher volume shipped, and an increase in the accrual for statutory
workers legal participation of profits in line with the higher earnings. Total
cash cost was US$387 per equivalent ounce for the March quarter compared with
US$449 per equivalent ounce in the December quarter, mainly reflecting the
effect of the higher equivalent ounces sold.
Operating profit increased from US$88 million (R604 million) in the December
quarter to US$112 million (R785 million) in the March quarter, reflecting the
higher metal production and sales together with higher metal prices.
Capital expenditure for the March quarter was US$17 million (R117 million),
compared with US$20 million (R142 million) in the December quarter. The lower
expenditure during the March quarter was mainly due to delays in the
permitting for the oxide plant.
Notional cash expenditure decreased from US$650 per equivalent ounce in the
December quarter to US$537 per equivalent ounce in the March quarter due to
the lower capital expenditure and the higher equivalent ounces produced. The
NCE margin increased from 54 per cent to 61 per cent.
Australasia region
Australia
St Ives
March December
2011 2010
Gold produced - 000`oz 120.5 125.1
Yield - heap leach - g/t 0.5 0.4
- milling - g/t 2.9 3.1
- combined - g/t 2.3 2.4
Total cash cost - A$/oz 860 768
- US$/oz 862 756
Notional cash expenditure - A$/oz 997 991
- US$/oz 1,000 976
NCE margin -% 28 29
Gold production decreased from 125,100 ounces in the December 2010 quarter to
120,500 ounces in the March 2011 quarter due to an overall decrease in mined
grade this quarter.
At the underground operations, ore mined decreased from 484,700 tonnes at 4.6
grams per tonne in the December 2010 quarter to 456,700 tonnes at 4.2 grams
per tonne in the March 2011 quarter. This grade and tonnage reduction reflects
reduced ore and grade from Belleisle during this quarter, in line with the
planned closure scheduled for next quarter, and the re-scheduling of the ramp-
up process at Athena, placing emphasis on long hole and slot drilling to
achieve greater short- to medium-term flexibility, thereby sacrificing early
available ounces. Athena is nonetheless expected to achieve full production by
June 2011, as planned.
At the open pit operations total ore tonnes mined was similar at 0.95 million
tonnes. Overall open pit grade decreased from 2.2 grams per tonne to 1.9 grams
per tonne, in line with current mine scheduling.
Gold produced from the Lefroy mill decreased from 119,400 ounces in the
December 2010 quarter to 113,600 ounces in the March 2011 quarter, due to a
decrease in head grade from 3.3 grams per tonne to 3.0 grams per tonne.
The decreased head grade reflects the reduced mined grades from source.
Production from the heap leach facility increased from 5,700 ounces in the
December 2010 quarter to 6,900 ounces in the March 2011 quarter.
Operating costs, including gold-in-process movements, increased from A$95
million (R647 million) in the December 2010 quarter to A$105 million (R736
million) in the March 2011 quarter. This was mainly due to a draw-down of
inventory to supplement the lower ounces mined, produced at similar costs
because of the fixed nature of costs at St Ives. Total cash cost increased
from A$768 per ounce (US$756 per ounce) to A$860 per ounce (US$862 per ounce)
due to reduced production and draw-down from gold-in-process.
Operating profit decreased from A$79 million (R535 million) to A$62 million
(R435 million), due to lower revenue and increased costs this quarter.
Capital expenditure decreased from A$28 million (R194 million) to A$24 million
(R166 million) with the majority of expenditure invested in exploration and
mine development. The access road to the Formidable open pit project has been
established and pre-strip activities will commence next quarter. The
Formidable open pit is expected to yield 53,000 ounces of gold over a 16 month
period with full production expected in October 2011.
Notional cash expenditure increased from A$991 per ounce (US$976 per ounce) in
the December 2010 quarter to A$997 per ounce (US$1,000 per ounce) in the March
2011 quarter. The NCE margin decreased from 29 per cent to 28 per cent.
Agnew
March December
2011 2010
Gold produced - 000`oz 37.9 44.3
Yield - g/t 6.4 6.6
Total cash cost - A$/oz 758 625
- US$/oz 760 615
Notional cash expenditure - A$/oz 1,155 969
- US$/oz 1,158 954
NCE margin -% 17 29
Gold production decreased from 44,300 ounces in the December quarter to 37,900
ounces in the March quarter. Ore mined from underground decreased from 167,000
tonnes at a head grade of 8.1 grams per tonne in the December quarter to
147,000 tonnes at a head grade of 8.2 grams per tonne in the March quarter.
Production was impacted by a once off paste fill cement consistency issue,
limiting the ability to bring stopes into sequence at Kim lode, the highest
grade section at the Waroonga underground mine.
Tonnes processed reduced from 208,000 tonnes in the December quarter to
184,000 tonnes in the March quarter, with a decrease in yield from 6.6 grams
per tonne to 6.4 grams per tonne as underground production decreased. The
tonnes mined from underground were supplemented with low grade material from
surface stockpiles.
Operating costs, including gold-in-process movements, increased from A$28
million (R193 million) in the December quarter to A$29 million (R204 million)
in the March quarter. Total cash cost per ounce increased from A$625 per ounce
(US$615 per ounce) to A$758 per ounce (US$760 per ounce) due primarily to the
decreased production.
Operating profit decreased from A$33 million (R221 million) in the December
quarter to A$24 million (R166 million) in the March quarter.
Capital expenditure decreased from A$16 million (R105 million) in the December
quarter to A$15 million (R105 million) in the March quarter. This included A$4
million spent on the Songvang open pit project, which delivered its first ore
in April 2011, and A$2 million on the new ventilation system, which includes a
return air shaft and primary ventilation fans allowing the Waroonga
underground mine to extend at depth.
Notional cash expenditure increased from A$969 per ounce (US$954 per ounce) in
the December quarter to A$1,155 per ounce (US$1,158 per ounce) in the March
quarter due to the decreased production. The NCE margin decreased from 29 per
cent to 17 per cent.
Quarter ended 31 March 2011 compared with quarter ended 31 March 2010
Group attributable gold production increased by 5 per cent from 793,000 ounces
for the quarter ended March 2010 to 830,000 ounces for the quarter ended March
2011.
At the South African operations gold production increased from 395,000 ounces
to 411,000 ounces. KDC`s gold production increased from 255,000 ounces to
263,000 ounces due to an increase in volumes mined. Beatrix`s gold production
decreased from 83,000 ounces to 74,000 ounces mainly due to lower volumes
mined and processed. South Deep`s gold production increased from 58,000 ounces
to 74,000 ounces in line with the build-up plan.
At the West African operations, total managed gold production increased from
227,000 ounces for the quarter ended March 2010 to 244,000 ounces for the
quarter ended March 2011. At Damang, gold production increased by 7 per cent
from 54,000 ounces to 58,000 ounces and at Tarkwa, gold production increased
by 8 per cent from 173,000 ounces to 186,000 ounces due to increased CIL
throughput and increased head grades.
In South America, gold equivalent production at Cerro Corona decreased from
110,000 ounces in the March 2010 quarter to 108,000 ounces in the March 2011
quarter.
At the Australasia operations gold production increased by 7 per cent from
148,000 ounces in the March 2010 quarter to 158,000 ounces in the March 2011
quarter. St Ives increased by 12 per cent from 107,000 ounces to 121,000
ounces. This was mainly due to an increase in underground tonnes. Production
at Agnew decreased from 41,000 ounces to 38,000 ounces due to delays in stope
availability as a result of the paste fill issue in the March 2011 quarter.
Revenue increased by 23 per cent from R7,280 million (US$971 million) to
R8,969 million (US$1,285 million). The average gold price increased by 17 per
cent from R265,641 per kilogram (US$1,102 per ounce) in the quarter ended
March 2010 to R311,708 per kilogram (US$1,389 per ounce) in the March 2011
quarter. The US dollar strengthened from US$1 = R7.50 to US$1 = R6.98 or 7 per
cent, while the rand/Australian dollar weakened by 4 per cent from A$1 = R6.76
to A$1 = R7.00. The Australian dollar strengthened 11 per cent from 90 cents
to 100 cents or parity with the US dollar.
Operating costs, including gold-in-process movements, increased from R4,710
million (US$628 million) to R4,878 million (US$699 million). At the South
Africa region, the increase in costs was mainly due to annual wage and
electricity tariff increases. At the West Africa region, the increase in costs
was due to electricity tariff increases, fuel price increases and annual wage
increases, while in South America increased statutory workers participation in
profits contributed to the increase in costs. Total cash cost for the Group
decreased from R169,538 per kilogram (US$703 per ounce) to R168,455 per
kilogram (US$751 per ounce) due to increased gold production and cost
reductions throughout the Group.
At the South African operations operating costs increased by 2 per cent from
R2,733 million (US$364 million) for the March 2010 quarter to R2,783 million
(US$399 million) for the March 2011 quarter. This was due to annual wage
increases and increased electricity tariffs, partly offset by cost saving
initiatives and fewer employees at all the operations. Total cash cost at the
South African operations decreased from R214,467 per kilogram to R213,759 per
kilogram as a result of the above.
At the West African operations, operating costs, including gold-in- process
movements, decreased from US$131 million in the March 2010 quarter to US$122
million in the March 2011 quarter. This was due to a higher gold-in-process
credit, partly offset by the increases in production, annual wage increases,
fuel increases and power increases.
At Cerro Corona in South America, operating costs including gold-in- process
movements increased from US$34 million in the March 2010 quarter to US$44
million in the March 2011 quarter, in line with the increase in production and
the increase in statutory workers participation.
At the Australasia operations, operating costs including gold-in-process
movements increased from A$109 million in the March 2010 quarter to A$134
million in the March 2011 quarter. At St Ives, operating costs increased from
A$91 million to A$96 million. Gold-in- process moved from a credit to cost of
A$7 million to a charge of A$9 million due to a draw-down of stockpiles and
gold-in-circuit in the March 2011 quarter. At Agnew, operating costs increased
from A$25 million to A$29 million mainly due to escalations in the fuel price
and salary increases.
Operating profit increased from R2,570 million (US$344 million) to R4,091
million (US$586 million). Non-recurring costs of R83 million (US$12 million)
for the March 2011 quarter compare with non- recurring income of R22 million
(US$4 million) for the March 2010 quarter. The non-recurring items for the
March 2011 quarter were due to voluntary separation packages of R30 million
(US$4 million) and business process re-engineering costs of R53 million (US$8
million) at all the operations.
The non-recurring items for the March 2010 quarter were mainly as a result of
profit on the disposal of 1.4 million of the top-up Eldorado shares.
Government royalties increased from R117 million (US$16 million) in the March
2010 quarter to R165 million (US$24 million) in the March 2011 quarter, as the
March 2010 quarter only included one month`s royalty at the South Africa
region.
Taxation increased from R430 million (US$58 million) in the March 2010 quarter
to R780 million (US$112 million) in the March 2011 quarter.
After accounting for the sundry items, royalties and taxation, net earnings
attributable to ordinary shareholders amounted to R1,100 million (US$158
million), compared with earnings of R316 million (US$44 million) for the
quarter ended March 2010.
Earnings excluding non-recurring items, gains and losses on foreign exchange,
financial instruments and gains or losses of associates after taxation,
amounted to R1,152 million (US$165 million) for the quarter ended March 2011,
compared with R320 million (US$44 million) for the quarter ended March 2010.
Growth
Gold Fields has a target of achieving five million ounces per annum, either in
production or in development, by the end of 2015. To this end we have
developed an extensive pipeline of projects which are discussed below.
Project development
Far South East (FSE)
In the Philippines, exploration at the Far South East project (Gold Fields
option to earn 60 per cent from Lepanto Mining) is ramping up with five
underground diamond drill rigs operating. Initial drilling confirms that the
ore body is open laterally and at depth. Further drilling has been
commissioned to gain a full understanding of the potential value. In the March
quarter, 5,300 metres of drilling has been completed. Three more rigs are due
to be commissioned during the June 2011 quarter.
In parallel, conceptual study work has started on hydrogeology, metallurgy,
tailings disposal and infrastructure. A preliminary desktop seismic study and
a water balance study have been completed. A community relations team has been
established and deployed.
Study work during the March quarter concentrated on various mining options and
methods.
Exploration expenditure of R17 million (US$2 million) and feasibility and
evaluation costs of R27 million (US$4 million) in the March quarter compared
with exploration expenditure of R21 million (US$3 million) and feasibility and
evaluation costs of R23 million (US$3 million) in the December quarter.
Chucapaca
Resource definition drilling continues at the Chucapaca project in Peru (Gold
Fields 51 per cent), with twelve drills currently on site. The drilling
results demonstrate strong grade and structural continuity within the current
resource model and suggest that mineralisation is still open to the west.
Subsequent to the scoping study (completed in May 2010), further drilling
delivered encouraging results and it was decided to commence a full
feasibility study with completion targeted mid 2012. The feasibility study
encompasses an additional 106,000 metres of resource and geotechnical drilling
as well as metallurgical testwork.
Services from four engineering companies have been contracted to conduct the
engineering and costing work to the feasibility study estimate level.
EIA baseline work commenced and is expected to be completed in the first
quarter of 2012.
A substantial community engagement and socio-economic plan is underway with
the local communities and formal agreements are in place to complete the
exploration and study phases of the work programme.
Capitalised exploration expenditure for the March quarter amounted to R85
million (US$12 million) compared with expensed exploration expenditure of R48
million (US$7 million) and feasibility and evaluation costs of R43 million
(US$6 million) in the December quarter.
Arctic Platinum Project (APP)
The metallurgical drilling programme at APP in Finland (Gold Fields 100 per
cent) was completed with two 50 tonne ore samples now available for pilot
plant flotation, which is scheduled to start in the June 2011 quarter.
Concentrates generated from this work will be available for pilot plant
hydrometallurgical testing, with completion during the September 2011 quarter.
Exploration projects
In addition to the three resource development projects, the Greenfields
exploration portfolio also consists of three advanced drilling projects, seven
initial drilling projects and nine target definition projects in Peru, Chile,
Mali, Ghana, Canada, Finland, Kyrgyzstan, Australia and the Philippines. Near
mine exploration continued at St Ives, Agnew, Damang and commenced at Cerro
Corona during the quarter.
Advanced Drilling Projects
At the Yanfolila project in southern Mali (Gold Fields 85 per cent), resource
delineation drilling continued on the Komana East and Komana West deposits,
while initial drilling was carried out on several targets within a 20
kilometre radius of Komana East. Results continue to be encouraging.
The fully audited and SAMREC 2007 compliant Inferred Mineral Resource (100 per
cent), based on the exploration drilling up to December 2010, is summarised as
follows:
Deposit Tonnes Grade Metal
(Mt) (g/t Au) (koz Au)
Komana East 5.1 2.5 410
Komana West 4.0 2.6 330
Total 9.1 2.5 740
Note: Inferred Mineral Resources are reported in accordance with the South
African Code for the Reporting of Exploration Results, Mineral Resources and
Mineral Reserves, 2007 edition (SAMREC Code); reported without dilution or ore
loss within an optimised pit shell at a cut-off grade of 0.41 grams per tonne.
Gold Fields commodity price of US$1,100 per ounce was used in optimisation.
Some figures may not add due to rounding.
The resource delineation drilling programme is continuing through the June
2011 quarter in parallel with other elements of a scoping study to be
completed in the September 2011 quarter.
Gold Fields can earn up to a 70 per cent interest in the Woodjam project in
British Columbia, Canada with joint venture partners Fjordland Exploration
Inc. (TSX.V:"FEX") and Cariboo Rose Resources (TSX.V:"CRB"). Following
encouraging exploration results in 2010, the decision was taken to accelerate
the drilling programme, complete a SAMREC 2007 compliant mineral resource
declaration and a scoping study by the March 2012 quarter. Two diamond drills
are currently on site and infill resource delineation drilling is in progress
at the Southeast zone target. Additional drill holes recently completed at the
Deerhorn target have been positive and partially defined a copper-gold
mineralised zone which is still open. Results were disappointing for the
initial four holes drilled to test for extensions of the Deerhorn
mineralisation onto the adjacent Rand claims which Gold Fields recently
optioned from Teslin River Resources (TSX.V: "TLR").
The drill programme at the Talas Project in Kyrgyzstan (Gold Fields 60 per
cent), planned to start in April 2011, has been suspended due to local
community unrest. Gold Fields is seeking government support as well as a force
majeure on the project licenses until the situation improves.
Initial Drilling Projects
At the East Lachlan joint ventures in New South Wales, Australia, where Gold
Fields has earned into an 80 per cent interest in two porphyry Au-Cu project
areas (Wellington North and Cowal East) and is earning into 80 per cent on
another two projects with Clancy Exploration Ltd (ASX:"CLY"), drilling
recommenced in January 2011 after delays due to a severe rainy season in late
2010. Full field air core drilling is in progress at the Myall joint venture
with three rigs.
On the Parkes area tenements (Gold Fields 100 per cent), reverse circulation
drilling commenced on the Buryan porphyry copper-gold and epithermal gold
targets. The holes have intersected pervasively altered quartz diorite
porphyry, with abundant vein and disseminated pyrite.
At the Pircas high-sulphidation epithermal gold projects in Chile (Gold Fields
options for 100 per cent), reverse circulation drilling commenced at the
Salares Norte property (SBX Option) in March 2011 to test selected CSAMT
geophysical and geochemical targets.
Planning is underway for a 2,000 metre diamond drilling programme to commence
in the September 2011 quarter 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").
At the Asheba project in Ghana (Gold Fields 90 per cent), a 4,800 metre
drilling programme was completed during the quarter.
Near Mine Exploration
St Ives
Activities continue to focus on the extensional potential in the Neptune area
between the major Revenge and Leviathan mining camps, which have recorded a
combined six million ounces in historic production. In excess of 15,000 metre
of diamond, reverse circulation and air core drilling were completed on
extensional programmes in this area. All new data is to be included in a
resource update scheduled for next quarter, which will also guide the ongoing
drilling programme.
Mineralisation at the Incredible prospect at St Ives is associated with quartz
veining and alteration in a 100 metre wide shear zone within a rock sequence,
which has been regarded previously as non- prospective. Aircore drilling has
been completed to define the full extent of the near surface anomalism and
additional framework diamond holes are planned to be completed during the June
2011 quarter.
Agnew
The assessment of various mining options for the Waroonga Main lode continued
with further directional drilling from surface. Scope for new lodes at
Waroonga was identified in the new "Porphyry Link" target zone which is
located between the Kim and Main lodes. At the Cinderella open pit project,
access to a small prospecting license covering the up-dip extension of the
deposit was secured in late 2010. Two reverse circulation holes were drilled
into this area and intersected shallow high grade mineralisation. Further
infill drilling is planned in the next quarter, prior to a detailed mining
evaluation.
Damang
The first phase of the Greater Damang 29,000 metre drilling programme
continued this quarter, with expected completion during the June 2011 quarter.
The drilling covers the entire strike length of this geological complex to
assess the cutback potential of the Huni, Damang and Juno deposits. A model
update is expected to be completed in the September 2011 quarter,
incorporating the new drilling assays and geological understanding.
Cerro Corona
Infill and extensional drilling commenced within the Cerro Corona pit, aimed
at defining a suite of geological parameters to assist future optimal mine
planning and to identify potential higher value ore with close proximity to
the current design pit. The drilling should provide an understanding of the
behaviour and distribution of the newly recognised, overprinting and higher
grade epithermal mineralisation event in the western portion of the deposit.
Business development
A joint venture agreement was signed in February 2011 with the private owners
of the Eldorado gold project in British Columbia, where Gold Fields can earn a
70 per cent interest. The planned work programme includes an aeromagnetic
survey followed by geological mapping and geochemical sampling in the June
2011 quarter, and a 2,000 metre diamond drilling programme to be completed in
the September 2011 quarter.
The Central Victoria project in Australia was divested to Timpetra Resources
Ltd. as part of their initial public offering on the ASX post quarter end.
Under the terms of the agreement Gold Fields will retain an equity ownership
of 21.8 per cent in Timpetra post-initial public offering and anti-dilution
rights to acquire and maintain up to a 40 per cent shareholding in the
company.
Corporate
Directorate changes
Appointment
Mr Matthews Sello Moloko was appointed as an independent Non- Executive
Director of Gold Fields with effect from 24 February 2011. Mr Moloko is the
Executive Chairman, founder and shareholder of Thesele Group and Chairman of
Alexander Forbes Group. He also serves on the Sycom Property Fund Board as an
independent Non- Executive Deputy Chairman. Mr Moloko is a member of the
Nelson Mandela Foundation Sustainability and Investment Committee. He
previously served on the Financial Sector Charter Council as a representative
of the Black Business Council through the Association of Black Securities and
Investment Professionals ("ABSIP").
Mr Moloko completed a BSc Honours degree in Mathematics and a Post Graduate
Certificate in Education at the University of Leicester in 1988 and 1989,
respectively. In 2003, he completed the Advanced Management Programme at The
Wharton School at the University of Pennsylvania. He has received recognition
for his achievements in financial services from the Black Business Economic
Circle and ABSIP with the Financial Services Pioneer award.
Retirement
At the Annual General meeting of shareholders held on 17 May 2011, Mr C I von
Christierson retired as an independant non-executive director after serving on
the Board with dedication and contributing significantly to the affairs of the
Company for the past twelve years.
Changes to the executive
With effect from 3 May 2011 Zakira Amra was appointed as Senior Vice President
for Corporate Affairs and Investor Relations. She will also take over from
Willie Jacobsz as a member of the Executive Committee.
Based at the Gold Fields corporate office in Johannesburg, Zakira will lead
the existing investor relations team comprising of Willie Jacobsz, who remains
based in Boston, USA, managing the North American portfolio, and Nikki
Catrakilis-Wagner, who is based in Johannesburg, as well as the corporate
affairs team headed up by Sven Lunsche, also based in Johannesburg.
Zakira has a Bachelor degree in Commerce from the University of Natal and
joins Gold Fields from Barclays Capital. She was a member of the Mining &
Metals Investment Banking team.
Voluntary offer to acquire shares of minorities in La Cima in Peru
On 22 March 2011, Gold Fields Corona (BVI) Limited ("Gold Fields Corona"), a
wholly owned subsidiary of Gold Fields Limited (NYSE and JSE: GFI) announced a
voluntary purchase offer in Lima, Peru, to acquire the outstanding common
voting shares and investment shares of Gold Fields La Cima S.A.A. (La Cima)
that it does not already own.
Gold Fields Corona offered 4.20 Peruvian Nuevos Soles (S/.) in cash for each
La Cima common or investment share. The price would be adjusted after the
dividend cut-off date for any dividends distributed during the term of the
offer pursuant to a resolution to be approved at the La Cima shareholders
meeting. Shareholders who accepted the offer before the dividend cut-off date
will receive S/. 4.20 per share, and will not be entitled to receive the
dividend that would be paid by La Cima. Shareholders who accepted the offer on
or after the dividend cut-off date will receive S/. 4.20 per share, less the
dividend to be approved at the shareholders meeting, which pursuant to the La
Cima Board`s proposal, would be S/. 0.138 per share.
If the offer is taken up in full, the cost of the transaction will amount to
S/. 1.16 billion (US$420 million). The offer price of S/. 4.20 per share is a
premium of 32 per cent over the current spot price of S/. 3.19 per common
share and a 36 per cent premium over the current spot price of S/. 3.08 per
investment share. The offer price represents a 30 per cent and a 34 per cent
premium over the six months average traded price of the common shares and
investment shares respectively.
On 18 April Gold Fields announced it had increased its stake in Gold Fields La
Cima S.A.A. (La Cima) from 80.7 per cent to 98.5 per cent following a
voluntary offer to minorities in La Cima to acquire their shares at a cost of
US$379 million. The offer was for the 8 per cent of the common shares not
already owned by Gold Fields Corona and for 100 per cent of the investment
shares.
The offer closed on Friday, 15 April 2011. Gold Fields Corona`s interest in La
Cima is now:
- 1,244.1 million common shares or 99 per cent of total Common shares; and
- 167.1 million investment shares or 95.1 per cent of the total investment
shares.
The combined effect of these two holdings is that Gold Fields now has a total
economic interest of 98.5 per cent in Cerro Corona.
Proposed acquisition of IAMGOLD`s 18.9 per cent minority stake in Tarkwa and
Damang
On 15 April 2011 it was announced that a binding agreement has been entered
into with IAMGOLD Corporation to acquire its 18.9 per cent minority stake in
Tarkwa and Damang, for a cash consideration of US$667 million. Upon completion
of the proposed acquisition, the Group will have increased its interest in
each of the Tarkwa and Damang gold mines from 71.1 per cent to 90 per cent,
the remaining 10 per cent interest being held by the Government of Ghana.
The completion of the proposed acquisition, which is subject to certain
conditions precedent being met, including Gold Fields shareholders approval,
is expected by 31 July 2011. Upon completion of this transaction Gold Fields
will acquire:
- an additional circa 181,000 ounces of annual production at current cash
costs of US$521 per ounce and NCE of US$938 per ounce based on results for the
quarter ended 31 March 2011;
- an additional 2.14 million reserve ounces at a cost of about US$300 per
ounce;
- an additional 3.27 million resource ounces at a cost of approximately US$198
per ounce;
- a significant resource and reserve upside potential, in particular at the
Damang mine; and
- US$20 million in working capital.
Outlook
The guidance provided on 18 February for the year ending December 2011 remains
unchanged. Gold production is estimated at between 3.5 million attributable
ounces and 3.7 million attributable ounces and total cash cost and NCE at
US$760 per ounce (R175,000 per kilogram) and US$1,050 per ounce (R240,000 per
kilogram) respectively, at an exchange rate of R/US$7.14 and US$/A$1.00. The
above is subject to the forward looking statement on pages 1 and 27. The
estimated financial information has not been reviewed and reported on by the
Gold Fields` auditors.
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.
N.J. Holland
Chief Executive Officer
19 May 2011
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
March December March
SOUTH AFRICAN RAND
2011 2010 2010
Revenue 8,969.4 9,255.3 7,279.9
Net operating costs (4,878.4) (5,015.4) (4,709.8)
- Operating costs (4,959.0) (5,047.6) (4,758.3)
- Gold inventory change 80.6 32.2 48.5
Operating profit 4,091.0 4,239.9 2,570.1
Amortisation and depreciation (1,240.0) (1,333.5) (1,139.3)
Net operating profit 2,851.0 2,906.4 1,430.8
Net interest paid (40.9) (64.7) (44.7)
Share of (loss)/gain of associates after
taxation (3.5) 11.0 4.1
Gain/(loss) on foreign exchange 3.0 1.4 (15.6)
Gain/(loss) on financial instruments 6.4 9.5 (25.0)
Share-based payments (122.0) (73.9) (120.9)
Other (76.1) (79.7) (96.4)
Exploration (138.5) (223.2) (126.9)
Feasibility and evaluation costs (27.3) (66.4) -
Profit before royalties, taxation and
non-recurring items 2,452.1 2,420.4 1,005.4
Non-recurring items (82.6) (2,328.9) 22.3
Profit before royalties and taxation 2,369.5 91.5 1,027.7
Royalties (164.6) (91.9) (117.2)
Profit/(loss) before taxation 2,204.9 (0.4) 910.5
Mining and income taxation (780.0) (560.6) (430.0)
- Normal taxation (599.8) (679.7) (155.4)
- Deferred taxation (180.2) 119.1 (274.6)
Net profit/(loss) 1,424.9 (561.0) 480.5
Attributable to:
- Owners of the parent 1,100.4 (777.2) 315.7
- Non-controlling interest 324.5 216.2 164.8
Non-recurring items:
(Loss)/profit on sale of investments - (3.5) 24.4
(Loss)/profit on sale of assets (1.3) 2.2 0.9
Restructuring costs (84.6) (179.2) (1.7)
Share-based payments on BEE transaction - (2,124.8) -
- ESOP - (1,227.3) -
- South Deep transaction - (824.8) -
- GFIMSA transaction - (72.7) -
Impairment of investments - - (1.3)
Other 3.3 (23.6) -
Total non-recurring items (82.6) (2,328.9) 22.3
Taxation 25.9 58.6 0.3
Net non-recurring items after taxation (56.7) (2,270.3) 22.6
and non-controlling interest
Net earnings/(loss) 1,100.4 (777.2) 315.7
Net earnings/(loss) per share (cents) 153 (110) 44
Diluted earnings/(loss) per share (cents) 151 (109) 44
Headline earnings/(loss) 1,101.4 (775.7) 292.0
Headline earnings/(loss) per share (cents) 153 (110) 41
Diluted headline earnings/(loss) per
share (cents) 151 (109) 41
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 1,151.7 1,474.6 320.1
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) 160 206 45
Gold sold - managed kg 28,775 30,449 27,405
Gold price received R/kg 311,708 303,958 265,641
Total cash cost R/kg 168,455 161,894 169,538
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
UNITED STATES DOLLARS March December March
2011 2010 2010
Revenue 1,285.0 1,334.2 971.2
Net operating costs (699.0) (723.9) (627.6)
- Operating costs (710.5) (728.6) (634.1)
- Gold inventory change 11.5 4.7 6.5
Operating profit 586.0 610.3 343.6
Amortisation and depreciation (177.7) (192.8) (152.0)
Net operating profit 408.3 417.5 191.6
Net interest paid (5.9) (9.3) (5.9)
Share of (loss)/gain of associates after
taxation (0.5) 0.7 0.5
Gain/(loss) on foreign exchange 0.4 0.1 (2.1)
Gain/(loss) on financial instruments 0.9 1.4 (3.4)
Share-based payments (17.5) (10.8) (16.1)
Other (10.6) (11.4) (12.7)
Exploration (19.9) (31.9) (16.9)
Feasibility and evaluation costs
Profit before royalties, taxation and (3.9) (9.3) -
non-recurring items 351.3 347.0 135.0
Non-recurring items (11.8) (326.8) 3.9
Profit before royalties and taxation 339.5 20.2 138.9
Royalties (23.6) (13.7) (15.6)
Profit before taxation 315.9 6.5 123.3
Mining and income taxation (111.7) (81.2) (57.7)
- Normal taxation (85.9) (97.1) (21.1)
- Deferred taxation (25.8) 15.9 (36.6)
Net profit/(loss) 204.2 (74.7) 65.6
Attributable to:
- Owners of the parents 157.7 (105.9) 43.7
- Non-controlling interest 46.5 31.2 21.9
Non-recurring items:
(Loss)/profit on sale of investments - (0.5) 3.8
(Loss)/profit on sale of assets (0.2) 0.3 0.2
Restructuring costs (12.1) (25.7) (0.2)
Gain on financial instruments - - 0.3
Share-based payments on BEE transaction - (297.6) -
- ESOP - (171.9) -
- South Deep transaction - (115.5) -
- GFIMSA transaction - (10.2) -
Impairment of investments - - (0.2)
Other 0.5 (3.3) -
Total non-recurring items (11.8) (326.8) 3.9
Taxation 3.7 8.4 (0.1)
Net non-recurring items after taxation and
non-controlling interest (8.1) (318.4) 3.8
Net earnings/(loss) 157.7 (105.9) 43.7
Net earnings/(loss) per share (cents) 22 (15) 6
Diluted earnings/(loss) per share (cents) 22 (14) 6
Headline earnings/(loss) 157.9 (105.8) 39.9
Headline earnings/(loss) per share (cents) 22 (15) 6
Diluted headline earnings/(loss) per share (cents) 22 (15) 6
Net earnings excluding gains and losses on
foreign exchange, financial instruments, non- 165.0 210.8 43.5
recurring items and share of gain/(loss) of
associates after royalties and taxation
Net earnings per share excluding gains and
losses on foreign exchange, financial
instruments, 23 29 6
non-recurring items and share of gain/(loss)
of associates after royalties and taxation (cents)
South African rand/United States dollar
conversion rate 6.98 6.92 7.50
South African rand/Australian dollar
conversion rate 7.00 6.81 6.76
Gold sold - managed oz (000) 925 979 881
Gold price received US$/oz 1,389 1,366 1,102
Total cash cost US$/oz 751 728 703
Statement of comprehensive income
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
SOUTH AFRICAN RAND March December March
2011 2010 2010
Net profit/(loss) 1,424.9 (561.0) 480.5
Other comprehensive income/(expenses), net of
tax 397.1 (114.5) (556.1)
Marked to market valuation of listed
investments 28.0 180.4 (134.0)
Currency translation adjustments and other 367.3 (275.5) (430.7)
Share of equity investee`s other
comprehensive loss - (0.3) (0.1)
Deferred taxation on marked to market
valuation of listed investments 1.8 (19.1) 8.7
Total comprehensive income/(loss) 1,822.0 (675.5) (75.6)
Attributable to:
- Owners of the parent 1,497.2 (893.4) (234.9)
- Non-controlling interest 324.8 217.9 159.3
1,822.0 (675.5) (75.6)
Statement of comprehensive income
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
UNITED STATES DOLLARS March December March
2011 2010 2010
Net profit/(loss) 204.2 (74.7) 65.6
Other comprehensive (expenses)/ income, net of
tax (110.4) 256.8 160.6
Marked to market valuation of listed
investments 4.0 25.4 (17.9)
Currency translation adjustments and other (114.7) 234.2 177.3
Share of equity investee`s other comprehensive
loss - (0.1) -
Deferred taxation on marked to market
valuation of listed investments 0.3 (2.7) 1.2
Total comprehensive income 93.8 182.1 226.2
Attributable to:
- Owners of the parent 58.2 133.8 189.9
- Non-controlling interest 35.6 48.3 36.3
93.8 182.1 226.2
Statement of financial position
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND UNITED STATES DOLLARS
March December March December
2011 2010 2011 2010
Property, plant and equipment 54,663.9 53,249.8 7,899.4 7,888.9
Goodwill 4,458.9 4,458.9 644.3 660.6
Non-current assets 1,153.0 1,137.9 166.6 168.6
Investments 1,021.8 1,078.5 147.7 159.8
Deferred taxation 724.9 753.1 104.8 111.6
Current assets 12,846.8 11,136.1 1,856.5 1,649.8
- Other current assets 6,243.6 5,672.3 902.3 840.3
- Cash and deposits 6,603.2 5,463.8 954.2 809.5
Total assets 74,869.3 71,814.3 10,819.3 10,639.3
Shareholders` equity 46,666.6 46,622.5 6,743.8 6,907.1
Deferred taxation 8,048.5 7,814.5 1,163.1 1,157.7
Long-term loans 10,842.5 7,671.9 1,566.8 1,136.6
Environmental rehabilitation
provisions 2,339.2 2,271.2 338.0 336.5
Post-retirement health care
provisions 18.0 18.0 2.6 2.7
Other long term provisions 113.6 133.2 16.4 19.7
Current liabilities 6,840.9 7,283.0 988.6 1,079.0
- Other current liabilities 5,811.2 5,516.8 839.8 817.3
- Current portion of long-term
loans 1,029.7 1,766.2 148.8 261.7
Total equity and liabilities 74,869.3 71,814.3 10,819.3 10,639.3
South African rand/US dollar
conversion rate 6.92 6.75
South African rand/Australian
dollar conversion rate 7.02 6.77
Net debt 5,269.0 3,974.3 761.4 588.8
Condensed statement of changes in equity
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
MARCH 2011 QUARTER 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 - 396.8 1,100.4
Profit for the quarter - - 1,100.4
Other comprehensive income - 396.8 -
Dividends paid - - (505.8)
Share-based payments - 122.0 -
Transactions with non-controlling
interest - - -
Purchase of non-controlling interest - - (853.6)
Treasury shares (81.4) - -
Exercise of employee share options 13.8 - -
Balance as at 31 March 2011 31,493.0 480.5 11,760.8
Non-controlling Total
interest equity
Balance as at 31 December 2010 3,080.4 46,622.5
Total comprehensive income 324.8 1,822.0
Profit for the quarter 324.5 1,424.9
Other comprehensive income 0.3 397.1
Dividends paid - (505.8)
Share-based payments - 122.0
Transactions with non-controlling interest 41.9 41.9
Purchase of non-controlling interest (514.8) (1,368.4)
Treasury shares - (81.4)
Exercise of employee share options - 13.8
Balance as at 31 March 2011 2,932.3 46,666.6
UNITED STATES DOLLARS
MARCH 2011 QUARTER 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 - (99.5) 157.7
Profit for the quarter - - 157.7
Other comprehensive expenses - (99.5) -
Dividends paid - - (73.2)
Share-based payments - 17.5 -
Transactions with non-controlling
interest - - -
Purchase of non-controlling interest - - (123.3)
Treasury shares (11.8) - -
Exercise of employee share options 2.0 - -
Balance as at 31 March 2011 4,592.9 125.4 1,601.8
Non-controlling Total
interest equity
Balance as at 31 December 2010 456.4 6,907.1
Total comprehensive (expenses)/income 35.6 93.8
Profit for the quarter 46.5 204.2
Other comprehensive expenses (10.9) (110.4)
Dividends paid - (73.2)
Share-based payments - 17.5
Transactions with non-controlling interest 6.1 6.1
Purchase of non-controlling interest (74.4) (197.7)
Treasury shares - (11.8)
Exercise of employee share options - 2.0
Balance as at 31 March 2011 423.7 6,743.8
SOUTH AFRICAN RAND
MARCH 2010 QUARTER 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 - (550.6) 315.7
Profit for the quarter - - 315.7
Other comprehensive expenses - (550.6) -
Dividends paid - - (353.0)
Share-based payments - 120.9 -
Exercise of employee share options 11.5 - -
Balance as at 31 March 2010 31,515.0 (1,682.3) 11,690.6
Non-controlling Total
interest equity
Balance as at 31 December 2009 2,746.4 44,725.2
Total comprehensive (expenses)/income 159.3 (75.6)
Profit for the quarter 164.8 480.5
Other comprehensive expenses (5.5) (556.1)
Dividends paid - (353.0)
Share-based payments - 120.9
Exercise of employee share options - 11.5
Balance as at 31 March 2010 2,905.7 44,429.0
UNITED STATES DOLLARS
MARCH 2010 QUARTER 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 - 146.2 43.7
Profit for the quarter - - 43.7
Other comprehensive income - 146.2 -
Dividends paid - - (45.5)
Share-based payments - 16.1 -
Exercise of employee share options 1.5 - -
Balance as at 31 March 2010 4,596.3 (546.0) 1,599.1
Non-controlling Total
interest equity
Balance as at 31 December 2009 359.0 5,846.4
Total comprehensive income 36.3 226.2
Profit for the quarter 21.9 65.6
Other comprehensive income 14.4 160.6
Dividends paid - (45.5)
Share-based payments - 16.1
Exercise of employee share options - 1.5
Balance as at 31 March 2010 395.3 6,044.7
Statement of cash flows
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
SOUTH AFRICAN RAND March December March
2011 2010 2010
Cash flows from operating activities 2,782.5 3,889.3 2,583.5
Profit before royalties, tax and
non-recurring items 2,452.1 2,420.4 1,005.4
Non-recurring items (82.6) (2,328.9) 22.3
Amortisation and depreciation 1,240.0 1,333.5 1,139.3
South Deep BEE dividend paid (21.4) - -
Change in working capital (290.6) 801.9 705.8
Royalties and taxation paid (662.0) (491.2) (390.7)
Other non-cash items 147.0 2,153.6 101.4
Dividends paid (564.4) (148.5) (353.0)
Owners of the parent (505.8) - (353.0)
Non-controlling interest holders (58.6) (148.5) -
Cash flows from investing activities (3,422.4) (2,921.4) (1,754.2)
Capital expenditure - additions (2,068.6) (2,414.4) (1,871.8)
Capital expenditure - proceeds on
disposal 8.7 8.9 0.8
La Cima non-controlling interest buy-out (1,368.4) - -
Payment for FSE - (371.0) -
Purchase of investments (0.7) (43.0) (47.3)
Proceeds on disposal of investments 11.5 2.0 172.0
Environmental and post-retirement health
care payments (4.9) (103.9) (7.9)
Cash flows from financing activities 2,277.8 358.0 577.8
Loans received 3,171.8 6,776.3 2,662.0
Loans repaid (949.7) (6,482.9) (2,095.7)
Non-controlling interest holders loans
received 41.9 62.7 -
Non-controlling interest holders loans
repaid - (20.5) -
Shares issued 13.8 22.4 11.5
Net cash inflow 1,073.5 1,177.4 1,054.1
Translation adjustment 65.9 (26.8) (57.4)
Cash at beginning of period 5,463.8 4,313.2 1,828.2
Cash at end of period 6,603.2 5,463.8 2,824.9
*Cash flow before financing activities
and dividend payments (639.9) 967.9 829.3
Quarter
March December March
UNITED STATES DOLLARS
2011 2010 2010
Cash flows from operating activities 397.6 557.0 344.8
Profit before royalties, tax and 351.3 347.0 135.0
non-recurring items
Non-recurring items (11.8) (326.8) 3.9
Amortisation and depreciation 177.7 192.8 152.0
South Deep BEE dividend paid (3.1) - -
Change in working capital (41.6) 109.1 91.6
Royalties and taxation paid (96.0) (68.4) (50.3)
Other non-cash items 21.1 303.3 12.6
Dividends paid (81.9) (20.2) (45.5)
Owners of the parent (73.2) - (45.5)
Non-controlling interest holders (8.7) (20.2) -
Cash flows from investing activities (492.1) (420.6) (234.1)
Capital expenditure - additions (296.4) (347.4) (249.5)
Capital expenditure - proceeds on disposal 1.2 1.4 0.1
La Cima non-controlling interest buy-out (197.7) - -
Payment for FSE - (54.0) -
Purchase of investments (0.1) (6.3) (6.5)
Proceeds on disposal of investments 1.6 0.3 22.9
Environmental and post-retirement health
care payments (0.7) (14.6) (1.1)
Cash flows from financing activities 330.2 55.4 77.5
Loans received 458.2 986.4 354.9
Loans repaid (136.1) (940.7) (278.9)
Non-controlling interest holders loans
received 6.1 9.3 -
Non-controlling interest holders loans
repaid - (2.9) -
Shares issued 2.0 3.3 1.5
Net cash inflow 153.8 171.6 142.7
Translation adjustment (9.1) 24.4 2.6
Cash at beginning of period 809.5 613.5 239.0
Cash at end of period 954.2 809.5 384.3
*Cash flow before financing activities
and dividend payments (94.5) 136.4 110.7
*Cash flow before financing activities is defined as the sum of cash flows
from operating activities and cash flows from investing activities.
Reconciliation of headline earnings with net earnings
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
March December March
2011 2010 2010
Net earnings/(loss) 1,100.4 (777.2) 315.7
Loss/(profit) on sale of investments - 3.5 (24.4)
Taxation effect on sale of investments - (0.7) -
Loss/(profit) on sale of assets 1.3 (2.2) (0.9)
Taxation effect on sale of assets (0.3) 0.9 0.3
Impairment of investments - - 1.3
Headline earnings/(loss) 1,101.4 (775.7) 292.0
Headline earnings/(loss) per share - cents 153 (110) 41
UNITED STATES DOLLARS
March December March
2011 2010 2010
Net earnings/(loss) 157.7 (105.9) 43.7
Loss/(profit) on sale of investments - 0.5 (3.8)
Taxation effect on sale of investments - (0.1) -
Loss/(profit) on sale of assets 0.2 (0.3) (0.2)
Taxation effect on sale of assets - - -
Impairment of investments - - 0.2
Headline earnings/(loss) 157.9 (105.8) 39.9
Headline earnings/(loss) per share - cents 22 (15) 6
Based on headline earnings/(loss) as given above divided by
721,328,149 (December 2010 - 715,825,482 and March 2010 -
705,524,513) 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*
South African rand forward cover contracts were taken out to cover commitments
of the South African operations in various currencies.
Outstanding at the end of March 2011 was the following contract:
- US$/ZAR - US$1 million in total, with a negative marked to market value of
US$0.1 million.
* Do not qualify for hedge accounting and will be accounted for as derivative
financial instruments in the income statement.
Debt maturity ladder
Figures are in millions unless otherwise stated
31 Dec 2011 31 Dec 2012 31 Dec 2013
Committed loan facilities
(including US$ bond and preference shares)
Rand million 752.9 1,000.0 500.0
US dollar million 40.0 557.0 498.0
Dollar debt translated to rand 276.8 3,854.4 3,446.2
Total (R`m) 1,029.7 4,854.4 3,946.2
Utilisation - Committed loan
facilities (including US$ bond and
preference shares)
Rand million 752.9 - -
US dollar million 40.0 460.0 40.0
Dollar debt translated to rand 276.8 3,183.2 276.8
Total (R`m) 1,029.7 3,183.2 276.8
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 2014
to
31 Dec 2020 Total
Committed loan facilities
(including US$ bond and preference shares)
Rand million 1,500.0 3,752.9
US dollar million 1,081.8 2,176.8
Dollar debt translated to rand 7,486.3 15,063.7
Total (R`m) 8,986.3 18,816.6
Utilisation - Committed loan facilities
(including US$ bond and preference shares)
Rand million - 752.9
US dollar million 1,066.8 1,606.8
Dollar debt translated to rand 7,382.5 11,119.3
Total (R`m) 7,382.5 11,872.2
Long-term loans per balance sheet (R`m) 10,842.5
Current portion of long-term loans per balance sheet (R`m) 1,029.7
Total loans per balance sheet (R`m) 11,872.2
Exchange rate: US$1 = R6.92 being the closing rate at the end of the March
2011 quarter.
Operating and financial results
SOUTH AFRICAN RAND South Africa Region
Total
Mine
Operations Total KDC Beatrix South Deep
Operating
Results Ore
milled/treated
(000 tonnes)
March 2011 14,458 4,020 2,534 908 578
December
2010 14,498 4,159 2,525 1,028 606
Yield
(grams per
tonne)
March 2011 2.0 3.2 3.2 2.5 4.0
December
2010 2.1 3.6 3.8 3.0 3.9
Gold produced
(kilograms)
March 2011 28,646 12,784 8,169 2,314 2,301
December
2010 30,644 15,090 9,661 3,080 2,349
Gold sold
(kilograms)
March 2011 28,775 12,784 8,169 2,314 2,301
December
2010 30,449 15,090 9,661 3,080 2,349
Gold price
received
(Rand per
kilogram)
March 2011 311,708 312,070 311,788 312,576 312,560
December
2010 303,958 301,975 302,008 301,526 302,427
Total cash cost
(Rand per
kilogram)
March 2011 168,455 213,759 206,916 232,411 219,296
December
2010 161,894 194,115 191,088 192,630 208,514
Notional cash
expenditure (Rand
per kilogram)
March 2011 241,716 295,494 264,341 300,173 401,391
December
2010 242,609 279,715 253,286 248,799 428,948
Operating costs
(Rand per tonne)
March 2011 343 692 679 605 887
December
2010 348 713 737 590 820
Financial
Results
(Rand million)
Revenue
March 2011 8,969.4 3,989.5 2,547.0 723.3 719.2
December
2010 9,255.3 4,556.8 2,917.7 928.7 710.4
Net operating
costs
March 2011 (4,878.4) (2,782.7) (1,720.9) (549.4) (512.4)
December
2010 (5,015.4) (2,964.1) (1,861.0) (606.3) (496.8)
-
Operating costs
March 2011 (4,959.0) (2,782.7) (1,720.9) (549.4) (512.4)
December
2010 (5,047.6) (2,964.1) (1,861.0) (606.3) (496.8)
- Gold
inventory
change
March 2011 80.6 - - - -
December
2010 32.2 - - - -
Operating
profit
March 2011 4,091.0 1,206.8 826.1 173.9 206.8
December
2010 4,239.9 1,592.7 1,056.7 322.4 213.6
Amortisation of
mining
assets
March 2011 (1,203.2) (648.9) (413.0) (97.6) (138.3)
December
2010 (1,291.5) (692.1) (431.2) (121.8) (139.1)
Net operating
profit
March 2011 2,887.8 557.9 413.1 76.3 68.5
December
2010 2,948.4 900.6 625.5 200.6 74.5
Other expenses
March 2011 (126.3) (61.9) (37.5) (10.7) (13.7)
December
2010 (114.6) (51.5) (32.3) 6.5 (25.7)
Profit before
royalties and
taxation
March 2011 2,761.5 496.0 375.6 65.6 54.8
December
2010 2,833.8 849.1 593.2 207.1 48.8
Royalties,
mining and
income taxation
March 2011 (914.8) (187.4) (137.3) (24.7) (25.4)
December
2010 (566.0) 83.0 108.9 4.1 (30.0)
- Normal
taxation
March 2011 (573.1) (44.6) (43.9) (0.7) -
December
2010 (598.1) (117.2) (115.5) (1.7) -
-
Royalties
March 2011 (164.6) (35.3) (28.1) (3.6) (3.6)
December
2010 (91.7) (54.1) (46.0) (4.6) (3.5)
- Deferred
taxation
March 2011 (177.1) (107.5) (65.3) (20.4) (21.8)
December
2010 123.8 254.3 270.4 10.4 (26.5)
Profit before
non-recurring
items
March 2011 1,846.7 308.6 238.3 40.9 29.4
December
2010 2,267.8 932.1 702.1 211.2 18.8
Non-recurring
items
March 2011 (81.8) (41.6) (18.8) (12.2) (10.6)
December
2010 (1,340.1) (1,268.4) (878.3) (308.2) (81.9)
Net profit/
(loss)
March 2011 1,764.9 267.0 219.5 28.7 18.8
December
2010 927.7 (336.3) (176.2) (97.0) (63.1)
Net profit excluding gains and losses on foreign exchange, financial
instruments and non-recurring
March 2011 1,825.7 293.9 231.8 36.7 25.4
December 2010 2,217.9 900.1 680.7 202.8 16.6
items
Capital
Expenditure
March 2011 (1,965.2) (994.9) (438.5) (145.2) (411.2)
December
2010 (2,386.9) (1,256.8) (586.0) (160.0) (510.8)
Operating and financial results
SOUTH AFRICAN RAND West Africa Region
Ghana
Total Tarkwa Damang
Operating Results
Ore milled/treated (000
tonnes) March 2011 7,053 5,803 1,250
December 2010 7,000 5,746 1,254
Yield (grams per tonne) March 2011 1.1 1.0 1.4
December 2010 1.1 1.0 1.5
Gold produced (kilograms) March 2011 7,574 5,787 1,787
December 2010 7,371 5,492 1,879
Gold sold (kilograms) March 2011 7,574 5,787 1,787
December 2010 7,371 5,492 1,879
Gold price received (Rand
per kilogram) March 2011 310,180 310,161 310,241
December 2010 304,830 304,534 305,695
Total cash cost (Rand per
kilogram) March 2011 116,887 104,234 157,862
December 2010 120,174 115,004 135,285
Notional cash expenditure
(Rand per kilogram) March 2011 210,496 195,542 258,926
December 2010 224,515 198,653 300,106
Operating costs (Rand per
tonne) March 2011 143 127 221
December 2010 138 123 207
Financial Results (Rand
million)
Revenue March 2011 2,349.3 1,794.9 554.4
December 2010 2,246.9 1,672.5 574.4
Net operating costs March 2011 (850.8) (576.4) (274.4)
December 2010 (959.7) (695.4) (264.3)
- Operating costs March 2011 (1,011.4) (735.7) (275.7)
December 2010 (965.8) (706.8) (259.0)
- Gold inventory change March 2011 160.6 159.3 1.3
December 2010 6.1 11.4 (5.3)
Operating profit March 2011 1,498.5 1,218.5 280.0
December 2010 1,287.2 977.1 310.1
Amortisation of mining
assets March 2011 (222.4) (180.6) (41.8)
December 2010 (146.4) (90.2) (56.2)
Net operating profit March 2011 1,276.1 1,037.9 238.2
December 2010 1,140.8 886.9 253.9
Other expenses March 2011 (30.9) (21.8) (9.1)
December 2010 (34.7) (4.0) (30.7)
Profit before royalties
and taxation March 2011 1,245.2 1,016.1 229.1
December 2010 1,106.1 882.9 223.2
Royalties, mining and
income taxation March 2011 (414.1) (335.2) (78.9)
December 2010 (313.0) (245.9) (67.1)
- Normal taxation March 2011 (320.2) (291.9) (28.3)
December 2010 (311.0) (218.3) (92.7)
- Royalties March 2011 (70.5) (53.9) (16.6)
December 2010 24.5 21.3 3.2
- Deferred taxation March 2011 (23.4) 10.6 (34.0)
December 2010 (26.5) (48.9) 22.4
Profit before
non-recurring items March 2011 831.1 680.9 150.2
December 2010 793.1 637.0 156.1
Non-recurring items March 2011 (26.0) (23.9) (2.1)
December 2010 (66.0) (58.9) (7.1)
Net profit March 2011 805.1 657.0 148.1
December 2010 727.1 578.1 149.0
Net profit excluding gains
and losses on foreign
exchange, March 2011 826.0 674.0 152.0
financial instruments December 2010 777.8 620.9 156.9
and non-recurring items
Capital Expenditure March 2011 (582.9) (395.9) (187.0)
December 2010 (689.1) (384.2) (304.9)
South
SOUTH AFRICAN RAND America Australasia Region #
Region
Peru Australia
Cerro
Corona Total St Ives Agnew
Operating Results
Ore milled/treated
(000 tonnes) March 2011 1,582 1,803 1,619 184
December 2010 1,495 1,844 1,636 208
Yield (grams per
tonne) March 2011 2.1 2.7 2.3 6.4
December 2010 1.9 2.9 2.4 6.6
Gold produced
(kilograms) March 2011 3,362 4,926 3,747 1,179
December 2010 2,915 5,268 3,889 1,379
Gold sold
(kilograms) March 2011 3,491 4,926 3,747 1,179
December 2010 2,720 5,268 3,889 1,379
Gold price
received (Rand
per kilogram) March 2011 312,088 312,850 312,410 314,249
December 2010 314,522 302,980 303,934 300,290
Total cash cost
(Rand per
kilogram) March 2011 86,823 188,023 193,541 170,483
December 2010 99,853 160,004 168,192 136,911
Notional cash
expenditure
(Rand per
kilogram) March 2011 120,494 232,887 224,393 259,881
December 2010 144,700 215,812 217,074 212,255
Operating costs
(Rand per tonne) March 2011 182 486 417 1,097
December 2010 187 454 398 901
Financial
Results (Rand
million)
Revenue March 2011 1,089.5 1,541.1 1,170.6 370.5
December 2010 855.5 1,596.1 1,182.0 414.1
Net operating
costs March 2011 (305.0) (939.9) (735.6) (204.3)
December 2010 (251.6) (840.0) (646.7) (193.3)
- Operating
costs March 2011 (288.1) (876.8) (675.0) (201.8)
December 2010 (279.8) (837.9) (650.4) (187.5)
- Gold inventory
change March 2011 (16.9) (63.1) (60.6) (2.5)
December 2010 28.2 (2.1) 3.7 (5.8)
Operating profit March 2011 784.5 601.2 435.0 166.2
December 2010 603.9 756.1 535.3 220.8
Amortisation of
mining assets March 2011 (97.3) (234.6)
December 2010 (97.3) (355.7)
Net operating
profit March 2011 687.2 366.6
December 2010 506.6 400.4
Other expenses March 2011 (23.4) (10.1)
December 2010 (22.6) (5.8)
Profit before
royalties and
taxation March 2011 663.8 356.5
December 2010 484.0 394.6
Royalties,
mining and
income taxation March 2011 (181.8) (131.5)
December 2010 (195.7) (140.3)
- Normal
taxation March 2011 (208.3) -
December 2010 (169.9) -
- Royalties March 2011 (19.9) (38.9)
December 2010 (23.8) (38.3)
- Deferred
taxation March 2011 46.4 (92.6)
December 2010 (2.0) (102.0)
Profit before
non-recurring
items March 2011 482.0 225.0
December 2010 288.3 254.3
Non-recurring
items March 2011 (1.3) (12.9)
December 2010 (0.3) (5.4)
Net profit March 2011 480.7 212.1
December 2010 288.0 248.9
Net profit
excluding gains
and losses on
foreign exchange,
financial March 2011 481.6 224.2
instruments December 2010 288.2 251.8
and non-recurring
items
Capital
Expenditure March 2011 (117.0) (270.4) (165.8) (104.6)
December 2010 (142.0) (299.0) (193.8) (105.2)
# 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) March 2011 14,458 4,020 2,534
December 2010 14,498 4,159 2,525
Yield (ounces per tonne) March 2011 0.064 0.102 0.104
December 2010 0.068 0.117 0.123
Gold produced (000 ounces)March 2011 921.0 411.0 262.6
December 2010 985.2 485.2 310.6
Gold sold (000 ounces) March 2011 925.1 411.0 262.6
December 2010 979.0 485.2 310.6
Gold price received
(dollars per ounce) March 2011 1,389 1,391 1,389
December 2010 1,366 1,357 1,357
Total cash cost (dollars
per ounce) March 2011 751 953 922
December 2010 728 872 859
Notional cash expenditure
(dollars per ounce) March 2011 1,077 1,317 1,178
December 2010 1,090 1,257 1,138
Operating costs (dollars
per tonne) March 2011 49 99 97
December 2010 50 103 107
Financial Results
($ million)
Revenue March 2011 1,285.0 571.6 364.9
December 2010 1,334.2 656.8 420.8
Net operating costs March 2011 (699.0) (398.7) (246.5)
December 2010 (723.9) (428.0) (268.8)
- Operating costs March 2011 (710.5) (398.7) (246.5)
December 2010 (728.6) (428.0) (268.8)
- Gold inventory change March 2011 11.5 - -
December 2010 4.7 - -
Operating profit March 2011 586.0 172.9 118.4
December 2010 610.3 228.8 152.0
Amortisation of mining
assets March 2011 (172.4) (93.0) (59.2)
December 2010 (186.8) (99.9) (62.2)
Net operating profit March 2011 413.6 79.9 59.2
December 2010 423.5 128.9 89.7
Other expenses March 2011 (18.1) (8.9) (5.4)
December 2010 (17.1) (7.8) (4.8)
Profit before royalties
and taxation March 2011 395.5 71.1 53.8
December 2010 406.5 121.1 84.9
Royalties, mining and
income taxation March 2011 (131.1) (26.8) (19.7)
December 2010 (82.6) 11.0 14.8
- Normal taxation March 2011 (82.1) (6.4) (6.3)
December 2010 (85.5) (16.5) (16.3)
- Royalties March 2011 (23.6) (5.1) (4.0)
December 2010 (13.8) (7.8) (6.6)
- Deferred taxation March 2011 (25.4) (15.4) (9.4)
December 2010 16.6 35.3 37.7
Profit before
non-recurring items March 2011 264.5 44.2 34.1
December 2010 323.9 132.1 99.8
Non-recurring items March 2011 (11.7) (6.0) (2.7)
December 2010 (188.2) (178.1) (123.4)
Net profit/(loss) March 2011 252.8 38.3 31.4
December 2010 135.7 (46.0) (23.6)
Net profit excluding
gains and losses on
foreign exchange, financial
instruments and March 2011 261.6 42.1 33.2
non-recurring December 2010 316.6 127.4 96.6
items
Capital Expenditure March 2011 (281.5) (142.5) (62.8)
December 2010 (343.6) (181.5) (84.9)
Beatrix South Deep
Operating Results
Ore milled/treated (000 tonnes) March 2011 908 578
December 2010 1,028 606
Yield (ounces per tonne) March 2011 0.082 0.128
December 2010 0.096 0.125
Gold produced (000 ounces) March 2011 74.4 74.0
December 2010 99.0 75.5
Gold sold (000 ounces) March 2011 74.4 74.0
December 2010 99.0 75.5
Gold price received (dollars per
ounce) March 2011 1,393 1,393
December 2010 1,355 1,359
Total cash cost (dollars per ounce) March 2011 1,036 977
December 2010 866 937
Notional cash expenditure (dollars
per ounce) March 2011 1,338 1,789
December 2010 1,118 1,928
Operating costs (dollars per tonne) March 2011 87 127
December 2010 85 118
Financial Results ($ million)
Revenue March 2011 103.6 103.0
December 2010 133.9 102.1
Net operating costs March 2011 (78.7) (73.4)
December 2010 (87.5) (71.7)
- Operating costs March 2011 (78.7) (73.4)
December 2010 (87.5) (71.7)
- Gold inventory change March 2011 - -
December 2010 - -
Operating profit March 2011 24.9 29.6
December 2010 46.4 30.5
Amortisation of mining assets March 2011 (14.0) (19.8)
December 2010 (17.7) (20.0)
Net operating profit March 2011 10.9 9.8
December 2010 28.7 10.4
Other expenses March 2011 (1.5) (2.0)
December 2010 0.8 (3.8)
Profit before royalties and taxation March 2011 9.4 7.9
December 2010 29.6 6.6
Royalties, mining and income taxation March 2011 (3.5) (3.6)
December 2010 0.3 (4.1)
- Normal taxation March 2011 (0.1) -
December 2010 (0.2) -
- Royalties March 2011 (0.5) (0.5)
December 2010 (0.7) (0.5)
- Deferred taxation March 2011 (2.9) (3.1)
December 2010 1.2 (3.6)
Profit before non-recurring items March 2011 5.9 4.2
December 2010 29.8 2.5
Non-recurring items March 2011 (1.7) (1.5)
December 2010 (43.3) (11.5)
Net profit/(loss) March 2011 4.1 2.7
December 2010 (13.4) (9.0)
Net profit excluding gains and losses
on foreign
exchange, financial instruments and March 2011 5.3 3.6
non-recurring December 2010 28.6 2.2
items
Capital Expenditure March 2011 (20.8) (58.9)
December 2010 (23.0) (73.6)
Average exchange rates were US$1 = R6.98 and US$1 = R6.92 for the March 2011
and the December 2010 quarters respectively.
The Australian dollar exchange rates were A$1 = R7.00 and A$1 = R6.81 for the
March 2011 and the December 2010 quarters respectively.
Operating and financial results
UNITED STATES DOLLARS
West Africa Region
Ghana
Total Tarkwa Damang
Operating Results
Ore milled/treated March 2011 7,053 5,803 1,250
(000 tonnes) December 2010 7,000 5,746 1,254
Yield (ounces per tonne) March 2011 0.035 0.032 0.046
December 2010 0.034 0.031 0.048
Gold produced (000 ounces) March 2011 243.5 186.1 57.5
December 2010 237.0 176.6 60.4
Gold sold (000 ounces) March 2011 243.5 186.1 57.5
December 2010 237.0 176.6 60.4
Gold price received March 2011 1,382 1,382 1,382
(dollars per ounce) December 2010 1,370 1,369 1,374
Total cash cost March 2011 521 464 703
(dollars per ounce) December 2010 540 517 608
Notional cash expenditure March 2011 938 871 1,154
(dollars per ounce) December 2010 1,009 893 1,349
Operating costs March 2011 21 18 32
(dollars per tonne) December 2010 20 18 30
Financial Results ($ million)
Revenue March 2011 336.6 257.1 79.4
December 2010 323.8 241.2 82.6
Net operating costs March 2011 (121.9) (82.6) (39.3)
December 2010 (138.8) (100.7) (38.1)
- Operating costs March 2011 (144.9) (105.4) (39.5)
December 2010 (139.6) (102.2) (37.4)
- Gold inventory change March 2011 23.0 22.8 0.2
December 2010 0.8 1.5 (0.7)
Operating profit March 2011 214.7 174.6 40.1
December 2010 185.0 140.5 44.5
Amortisation of mining March 2011 (31.9) (25.9) (6.0)
Assets December 2010 (21.6) (13.6) (8.0)
Net operating profit March 2011 182.8 148.7 34.1
December 2010 163.4 127.0 36.5
Other expenses March 2011 (4.4) (3.1) (1.3)
December 2010 (5.0) (0.6) (4.3)
Profit before royalties and March 2011 178.4 145.6 32.8
Taxation December 2010 158.5 126.3 32.1
Royalties, mining and March 2011 (59.3) (48.0) (11.3)
income taxation December 2010 (45.2) (35.5) (9.7)
- Normal taxation March 2011 (45.9) (41.8) (4.1)
December 2010 (44.4) (31.3) (13.2)
- Royalties March 2011 (10.1) (7.7) (2.4)
December 2010 3.0 2.6 0.3
- Deferred taxation March 2011 (3.4) 1.5 (4.9)
December 2010 (3.7) (6.8) 3.1
Profit before March 2011 119.1 97.6 21.5
non-recurring items December 2010 113.3 90.9 22.4
Non-recurring items March 2011 (3.7) (3.4) (0.3)
December 2010 (9.2) (8.3) (1.0)
Net profit March 2011 115.3 94.1 21.2
December 2010 104.0 82.6 21.4
Net profit excluding gains and losses on March 2011
118.3 96.6 21.8
losses on foreign exchange, December 2010 111.1 88.6 22.5
financial instruments and
non-recurring items
Capital Expenditure March 2011 (83.5) (56.7) (26.8)
December 2010 (98.8) (55.7) (43.1)
South Australasia Region
America
Region
Peru Australia #
Cerro
Corona Total St Ives
Operating Results
Ore milled/treated March 2011 1,582 1,803 1,619
(000 tonnes) December 2010 1,495 1,844 1,636
Yield (ounces per tonne) March 2011 0.068 0.088 0.074
December 2010 0.063 0.092 0.076
Gold produced (000 ounces) March 2011 108.1 158.4 120.5
December 2010 93.7 169.4 125.1
Gold sold (000 ounces) March 2011 112.2 158.4 120.5
December 2010 87.5 169.4 125.1
Gold price received March 2011 1,391 1,394 1,392
(dollars per ounce) December 2010 1,414 1,362 1,366
Total cash cost March 2011 387 838 862
(dollars per ounce) December 2010 449 719 756
Notional cash expenditure March 2011 537 1,038 1,000
(dollars per ounce) December 2010 650 970 976
Operating costs March 2011 26 70 60
(dollars per tonne) December 2010 27 66 57
Financial Results ($ million)
Revenue March 2011 156.1 220.8 167.7
December 2010 124.2 229.3 170.0
Net operating costs March 2011 (43.7) (134.7) (105.4)
December 2010 (36.5) (120.6) (92.9)
- Operating costs March 2011 (41.3) (125.6) (96.7)
December 2010 (40.3) (120.7) (93.7)
- Gold inventory change March 2011 (2.4) (9.0) (8.7)
December 2010 3.9 - 0.8
Operating profit March 2011 112.4 86.1 62.3
December 2010 87.8 108.6 77.1
Amortisation of mining March 2011 (13.9) (33.6)
Assets December 2010 (14.1) (51.2)
Net operating profit March 2011 98.5 52.5
December 2010 73.7 57.5
Other expenses March 2011 (3.4) (1.4)
December 2010 (3.4) (0.9)
Profit before royalties and March 2011 95.1 51.1
Taxation December 2010 70.2 56.6
Royalties, mining and March 2011 (26.0) (18.8)
income taxation December 2010 (28.3) (20.1)
- Normal taxation March 2011 (29.8) -
December 2010 (24.5) -
- Royalties March 2011 (2.9) (5.6)
December 2010 (3.5) (5.5)
- Deferred taxation March 2011 6.6 (13.3)
December 2010 (0.3) (14.6)
Profit before March 2011 69.1 32.2
non-recurring items December 2010 42.0 35.6
Non-recurring items March 2011 (0.2) (1.8)
December 2010 - (0.8)
Net profit March 2011 68.9 30.4
December 2010 41.9 36.9
Net profit excluding gains
and March 2011 69.0 32.1
losses on foreign exchange, December 2010 41.9 36.1
financial instruments and
non-recurring items
Capital Expenditure March 2011 (16.8) (38.7) (23.8)
December 2010 (20.2) (43.0) (28.0)
AUSTRALIAN DOLLARS
Australasia Region #
Agnew Total St Ives Agnew
Operating Results
Ore milled/treated March 2011 184 1,803 1,619 184
(000 tonnes) December 2010 208 1,844 1,636 208
Yield (ounces per
tonne) March 2011 0.206 0.088 0.074 0.206
December 2010 0.213 0.092 0.076 0.213
Gold produced (000
ounces) March 2011 37.9 158.4 120.5 37.9
December 2010 44.3 169.4 125.1 44.3
Gold sold (000
ounces) March 2011 37.9 158.4 120.5 37.9
December 2010 44.3 169.4 125.1 44.3
Gold price
received
(dollars per March 2011 1,400 1,390 1,388 1,396
ounce) December 2010 1,350 1,384 1,388 1,372
Total cash cost
(dollars per March 2011 760 835 860 758
ounce) December 2010 615 731 768 625
Notional cash
expenditure
(dollars per March 2011 1,158 1,035 997 1,155
ounce) December 2010 954 986 991 969
Operating costs
(dollars per March 2011 157 69 60 157
tonne) December 2010 130 67 58 132
Financial Results
($ million)
Revenue March 2011 53.1 220.2 167.2 52.9
December 2010 59.3 234.8 173.8 61.0
Net operating
costs March 2011 (29.3) (134.3) (105.1) (29.2)
December 2010 (27.8) (123.6) (95.1) (28.4)
- Operating costs March 2011 (28.9) (125.3) (96.4) (28.8)
December 2010 (27.0) (123.1) (95.5) (27.5)
- Gold inventory
change March 2011 (0.4) (9.0) (8.7) (0.4)
December 2010 (0.8) (0.5) 0.4 (0.9)
Operating profit March 2011 23.8 85.9 62.1 23.7
December 2010 31.6 111.2 78.6 32.6
Amortisation of
mining March 2011 (33.5)
Assets December 2010 (52.3)
Net operating
profit March 2011 52.4
December 2010 58.9
Other expenses March 2011 (1.4)
December 2010 (0.8)
Profit before
royalties and March 2011 50.9
Taxation December 2010 58.1
Royalties, mining
and March 2011 (18.8)
income taxation December 2010 (20.7)
- Normal taxation March 2011 -
December 2010 -
- Royalties March 2011 (5.6)
December 2010 (5.6)
- Deferred
taxation March 2011 (13.2)
December 2010 (15.0)
Profit before
non-recurring March 2011 32.1
items December 2010 37.5
Non-recurring
items March 2011 (1.8)
December 2010 (0.8)
Net profit March 2011 30.3
December 2010 36.7
Net profit
excluding gains
and
losses on foreign March 2011 32.0
exchange, December 2010 37.1
financial
instruments and
non-recurring items
Capital
Expenditure March 2011 (15.0) (38.6) (23.7) (14.9)
December 2010 (15.0) (43.9) (28.4) (15.5)
# As a significant portion of the acquisition price was allocated to tenements
of St Ives and Agnew on endowment ounces and also as these two Australian
operations are entitled to transfer and then off-set tax losses from one
company to another, it is not meaningful to split the income statement below
operating profit.
Figures may not add as they are rounded independently.
Total cash cost
Gold Industry Standards Basis
Figures are in South African rand millions unless otherwise stated
South Africa Region
Total
Mine
Operations Total KDC
Operating costs (1) March 2011 (4,959.0) (2,782.7) (1,720.9)
Dec 2010 (5,047.6) (2,964.1) (1,861.0)
Gold-in-process and March 2011 75.6 - -
inventory change* Dec 2010 21.2 - -
Less: March 2011 (24.1) (17.3) (12.4)
Rehabilitation costs Dec 2010 (28.8) (23.5) (16.7)
Production taxes March 2011 (7.2) (7.2) (4.1)
Dec 2010 (8.3) (8.3) (5.7)
General and admin March 2011 (176.6) (68.0) (46.3)
Dec 2010 (159.8) (65.5) (44.2)
Cash operating costs March 2011 (4,675.5) (2,690.2) (1,658.1)
Dec 2010 (4,829.5) (2,866.8) (1,794.4)
Plus: March 2011 (7.2) (7.2) (4.1)
Production taxes Dec 2010 (8.3) (8.3) (5.7)
Royalties March 2011 (164.6) (35.3) (28.1)
Dec 2010 (91.7) (54.1) (46.0)
TOTAL CASH COST (2) March 2011 (4,847.3) (2,732.7) (1,690.3)
Dec 2010 (4,929.5) (2,929.2) (1,846.1)
Plus: March 2011 (1,198.2) (648.9) (413.0)
Amortisation* Dec 2010 (1,280.5) (692.1) (431.2)
Rehabilitation March 2011 (24.1) (17.3) (12.4)
Dec 2010 (28.8) (23.5) (16.7)
TOTAL PRODUCTION March 2011 (6,069.6) (3,398.9) (2,115.7)
COST(3) Dec 2010 (6,238.8) (3,644.8) (2,294.0)
Gold sold March 2011 925.1 411.0 262.6
- thousand ounces Dec 2010 979.0 485.2 310.6
TOTAL CASH COST March 2011 751 953 922
- US$/oz Dec 2010 728 872 859
TOTAL CASH COST March 2011 168,455 213,759 206,916
- R/kg Dec 2010 161,894 194,115 191,088
TOTAL PRODUCTION March 2011 940 1,185 1,154
COST - US$/oz Dec 2010 921 1,086 1,067
TOTAL PRODUCTION March 2011 210,933 265,871 258,991
COST - R/kg Dec 2010 204,893 241,537 237,450
South Africa Region
South
Beatrix Deep Total
Operating costs (1) March 2011 (549.4) (512.4) (1,011.4)
Dec 2010 (606.3) (496.8) (965.8)
Gold-in-process and March 2011 - - 133.4
inventory change* Dec 2010 - - 3.2
Less: March 2011 (3.6) (1.3) (1.6)
Rehabilitation costs Dec 2010 (4.5) (2.3) (1.1)
Production taxes March 2011 (1.3) (1.8) -
Dec 2010 (1.1) (1.5) -
General and admin March 2011 (11.6) (10.1) (61.6)
Dec 2010 (13.1) (8.2) (51.2)
Cash operating costs March 2011 (532.9) (499.2) (814.8)
Dec 2010 (587.6) (484.8) (910.3)
Plus: March 2011 (1.3) (1.8) -
Production taxes Dec 2010 (1.1) (1.5) -
Royalties March 2011 (3.6) (3.6) (70.5)
Dec 2010 (4.6) (3.5) 24.5
TOTAL CASH COST (2) March 2011 (537.8) (504.6) (885.3)
Dec 2010 (593.3) (489.8) (885.8)
Plus: March 2011 (97.6) (138.3) (195.2)
Amortisation* Dec 2010 (121.8) (139.1) (143.5)
Rehabilitation March 2011 (3.6) (1.3) (1.6)
Dec 2010 (4.5) (2.3) (1.1)
TOTAL PRODUCTION March 2011 (639.0) (644.2) (1,082.1)
COST(3) Dec 2010 (719.6) (631.2) (1,030.4)
Gold sold March 2011 74.4 74.0 243.5
- thousand ounces Dec 2010 99.0 75.5 237.0
TOTAL CASH COST March 2011 1,036 977 521
- US$/oz Dec 2010 866 937 540
TOTAL CASH COST March 2011 232,411 219,296 116,887
- R/kg Dec 2010 192,630 208,514 120,174
TOTAL PRODUCTION March 2011 1,231 1,248 637
COST - US$/oz Dec 2010 1,050 1,208 628
TOTAL PRODUCTION March 2011 276,145 279,965 142,870
COST - R/kg Dec 2010 233,636 268,710 139,791
West Africa Region South
America
Region
Peru
Ghana Cerro
Tarkwa Damang Corona
Operating costs (1) March 2011 (735.7) (275.7) (288.1)
Dec 2010 (706.8) (259.0) (279.8)
Gold-in-process and March 2011 130.5 2.9 (11.6)
inventory change* Dec 2010 7.4 (4.2) 19.8
Less: March 2011 (1.1) (0.5) (0.9)
Rehabilitation costs Dec 2010 (0.9) (0.2) (0.9)
Production taxes March 2011 - - -
Dec 2010 - - -
General and admin March 2011 (54.8) (6.8) (15.6)
Dec 2010 (45.6) (5.6) (11.3)
Cash operating costs March 2011 (549.3) (265.5) (283.2)
Dec 2010 (652.9) (257.4) (247.8)
Plus: March 2011 - - -
Production taxes Dec 2010 - - -
Royalties March 2011 (53.9) (16.6) (19.9)
Dec 2010 21.3 3.2 (23.8)
TOTAL CASH COST (2) March 2011 (603.2) (282.1) (303.1)
Dec 2010 (631.6) (254.2) (271.6)
Plus: March 2011 (151.8) (43.4) (102.6)
Amortisation* Dec 2010 (86.2) (57.3) (88.9)
Rehabilitation March 2011 (1.1) (0.5) (0.9)
Dec 2010 (0.9) (0.2) (0.9)
TOTAL PRODUCTION March 2011 (756.1) (326.0) (406.6)
COST(3) Dec 2010 (718.7) (311.7) (361.4)
Gold sold March 2011 186.1 57.5 112.2
- thousand ounces Dec 2010 176.6 60.4 87.5
TOTAL CASH COST March 2011 464 703 387
- US$/oz Dec 2010 517 608 449
TOTAL CASH COST March 2011 104,234 157,862 86,823
- R/kg Dec 2010 115,004 135,285 99,853
TOTAL PRODUCTION March 2011 582 813 519
COST - US$/oz Dec 2010 588 746 597
TOTAL PRODUCTION March 2011 130,655 182,429 116,471
COST - R/kg Dec 2010 130,863 165,886 132,868
Australasia Region
Australia
Total St Ives Agnew
Operating costs (1) March 2011 (876.8) (675.0) (201.8)
Dec 2010 (837.9) (650.4) (187.5)
Gold-in-process and March 2011 (46.2) (44.3) (1.9)
inventory change* Dec 2010 (1.8) 2.7 (4.5)
Less: March 2011 (4.3) (3.5) (0.8)
Rehabilitation costs Dec 2010 (3.3) (2.7) (0.6)
Production taxes March 2011 - - -
Dec 2010 - - -
General and admin March 2011 (31.4) (20.2) (11.2)
Dec 2010 (31.8) (19.7) (12.1)
Cash operating costs March 2011 (887.3) (695.6) (191.7)
Dec 2010 (804.6) (625.3) (179.3)
Plus: March 2011 - - -
Production taxes Dec 2010 - - -
Royalties March 2011 (38.9) (29.6) (9.3)
Dec 2010 (38.3) (28.8) (9.5)
TOTAL CASH COST (2) March 2011 (926.2) (725.2) (201.0)
Dec 2010 (842.9) (654.1) (188.8)
Plus: March 2011 (251.5)
Amortisation* Dec 2010 (356.0)
Rehabilitation March 2011 (4.3)
Dec 2010 (3.3)
TOTAL PRODUCTION March 2011 (1,182.0)
COST(3) Dec 2010 (1,202.2)
Gold sold March 2011 158.4 120.5 37.9
- thousand ounces Dec 2010 169.4 125.1 44.3
TOTAL CASH COST March 2011 838 862 760
- US$/oz Dec 2010 719 756 615
TOTAL CASH COST March 2011 188,023 193,541 170,483
- R/kg Dec 2010 160,004 168,192 136,911
TOTAL PRODUCTION March 2011 1,069
COST - US$/oz Dec 2010 1,026
TOTAL PRODUCTION March 2011 239,951
COST - R/kg Dec 2010 228,208
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 = R6.98 and US$1 = R6.92 for the March 2011
and December 2010 quarters respectively.
South Africa Region
Total Mine
Operations
Total KDC
Sustaining capital March 2011 (983.1) (110.7) (58.5)
December 2010 (1,300.5) (257.4) (195.0)
Ore reserve March 2011 (473.0) (473.0) (380.0)
development December 2010 (484.5) (484.5) (386.9)
Project capital March 2011 (515.9) (411.2) -
December 2010 (517.2) (510.8) -
Uranium capital March 2011 - - -
December 2010 (4.1) (4.1) (4.1)
Brownfields March 2011 (96.6) - -
Exploration December 2010 (108.1) - -
Total capital March 2011 (2,068.6) (994.9) (438.5)
expenditure December 2010 (2,414.4) (1,256.8) (586.0)
South Africa Region
South
Beatrix Deep Total
Sustaining capital March 2011 (52.2) - (554.8)
December 2010 (62.4) - (670.8)
Ore reserve March 2011 (93.0) - -
development December 2010 (97.6) - -
Project capital March 2011 - (411.2) -
December 2010 - (510.8) -
Uranium capital March 2011 - - -
December 2010 - - -
Brownfields March 2011 - - (28.1)
Exploration December 2010 - - (18.3)
Total capital March 2011 (145.2) (411.2) (582.9)
expenditure December 2010 (160.0) (510.8) (689.1)
West Africa Region South
America
Region
Ghana Peru
Cerro
Tarkwa Damang Corona
Sustaining capital March 2011 (395.9) (158.9) (113.4)
December 2010 (384.2) (286.6) (142.0)
Ore reserve March 2011 - - -
development December 2010 - - -
Project capital March 2011 - - (3.6)
December 2010 - - -
Uranium capital March 2011 - - -
December 2010 - - -
Brownfields March 2011 - (28.1) -
Exploration December 2010 - (18.3) -
Total capital March 2011 (395.9) (187.0) (117.0)
expenditure December 2010 (384.2) (304.9) (142.0)
Australasia Region
Australia
Total St Ives
Sustaining capital March 2011 (201.9) (113.2)
December 2010 (209.2) (127.5)
Ore reserve March 2011 - -
development December 2010 - -
Project capital March 2011 - -
December 2010 - -
Uranium capital March 2011 - -
December 2010 - -
Brownfields March 2011 (68.5) (52.6)
Exploration December 2010 (89.8) (66.3)
Total capital March 2011 (270.4) (165.8)
expenditure December 2010 (299.0) (193.8)
Agnew Corporate
Sustaining capital March 2011 (88.7) (2.3)
December 2010 (81.7) (21.1)
Ore reserve March 2011 - -
development December 2010 - -
Project capital March 2011 - (101.1)
December 2010 - (6.4)
Uranium capital March 2011 - -
December 2010 - -
Brownfields March 2011 (15.9) -
Exploration December 2010 (23.5) -
Total capital March 2011 (104.6) (103.4)
expenditure December 2010 (105.2) (27.5)
Capital expenditure
Figures are in South African rand millions unless otherwise stated
Notional cash expenditure##
Figures are in South African rand millions unless otherwise stated
South Africa Region
Total
Group
Total KDC
Operating costs March 2011 (4,959.0) (2,782.7) (1,720.9)
December 2010 (5,047.6) (2,964.1) (1,861.0)
Capital March 2011 (2,068.6) (994.9) (438.5)
expenditure December 2010 (2,414.4) (1,256.8) (586.0)
Notional cash March 2011 245,326 295,494 264,341
expenditure December 2010 243,506 279,715 253,286
- R /k g
Notional cash March 2011 1,093 1,317 1,178
expenditure December 2010 1,094 1,257 1,138
- US$/oz
South Africa Region
South
Beatrix Deep Total
Operating costs March 2011 (549.4) (512.4) (1,011.4)
December 2010 (606.3) (496.8) (965.8)
Capital March 2011 (145.2) (411.2) (582.9)
expenditure December 2010 (160.0) (510.8) (689.1)
Notional cash March 2011 300,173 401,391 210,496
expenditure December 2010 248,799 428,948 224,515
- R /k g
Notional cash March 2011 1,338 1,789 938
expenditure December 2010 1,118 1,928 1,009
- US$/oz
West Africa Region South
America
Region
Ghana Peru
Cerro
Tarkwa Damang Corona
Operating costs March 2011 (735.7) (275.7) (288.1)
December 2010 (706.8) (259.0) (279.8)
Capital March 2011 (395.9) (187.0) (117.0)
expenditure December 2010 (384.2) (304.9) (142.0)
Notional cash March 2011 195,542 258,926 120,494
expenditure December 2010 198,653 300,106 144,700
- R /k g
Notional cash March 2011 871 1,154 537
expenditure December 2010 893 1,349 650
- US$/oz
Australasia Region
Australia
St
Total Ives
Operating costs March 2011 (876.8) (675.0)
December 2010 (837.9) (650.4)
Capital March 2011 (270.4) (165.8)
expenditure December 2010 (299.0) (193.8)
Notional cash March 2011 232,887 224,393
expenditure December 2010 215,812 217,074
- R /k g
Notional cash March 2011 1,038 1,000
expenditure December 2010 970 976
- US$/oz
Corporate
Agnew
Operating costs March 2011 (201.8) -
December 2010 (187.5) -
Capital March 2011 (104.6) (103.4)
expenditure December 2010 (105.2) (27.5)
Notional cash March 2011 259,881 -
expenditure December 2010 212,255 -
- R /k g
Notional cash March 2011 1,158 -
expenditure December 2010 954 -
- US$/oz
## Notional cash expenditure (NCE) per kilogram (ounce) = operating costs plus
capital expenditure divided by gold produced.
Underground and surface
South African rand and metric units
South Africa Region
Total
Mine
Operations
Operating Results Total KDC
Ore milled/treated
(000 tonne)
- underground March 2011 2,713 2,061 1,092
December 2010 3,133 2,533 1,350
- surface March 2011 11,745 1,959 1,442
December 2010 11,365 1,626 1,175
- total March 2011 14,458 4,020 2,534
December 2010 14,498 4,159 2,525
Yield (grams per tonne)
- underground March 2011 5.4 5.6 6.6
December 2010 5.5 5.5 6.6
- surface March 2011 1.2 0.6 0.7
December 2010 1.2 0.6 0.7
- combined March 2011 2.0 3.2 3.2
December 2010 2.1 3.6 3.8
Gold produced (kilograms)
- underground March 2011 14,750 11,534 7,159
December 2010 17,299 14,041 8,861
- surface March 2011 13,896 1,250 1,010
December 2010 13,345 1,049 800
- total March 2011 28,646 12,784 8,169
December 2010 30,644 15,090 9,661
Operating costs
(Rand per tonne)
- underground March 2011 1,155 1,269 1,453
December 2010 1,061 1,120 1,304
- surface March 2011 155 86 93
December 2010 152 78 85
- total March 2011 343 692 679
December 2010 348 713 737
South Africa Region
South
Operating Results Beatrix Deep # Total
Ore milled/treated
(000 tonne)
- underground March 2011 499 470 -
December 2010 666 517 -
- surface March 2011 409 108 7,053
December 2010 362 89 7,000
- total March 2011 908 578 7,053
December 2010 1,028 606 7,000
Yield (grams per tonne)
- underground March 2011 4.4 5.7
December 2010 4.4 5.1
- surface March 2011 0.3 0.9 1.1
December 2010 0.4 1.1 1.1
- combined March 2011 2.5 4.0 1.1
December 2010 3.0 3.9 1.1
Gold produced
(kilograms)
- underground March 2011 2,171 2,204
December 2010 2,925 2,255
- surface March 2011 143 97 7,574
December 2010 155 94 7,371
- total March 2011 2,314 2,301 7,574
December 2010 3,080 2,349 7,371
Operating costs
(Rand per tonne)
- underground March 2011 1,052 1,070 -
December 2010 880 947 -
- surface March 2011 60 90 143
December 2010 55 80 138
- total March 2011 605 887 143
December 2010 590 820 138
South
West Africa Region America
Region
Ghana Peru
Cerro
Operating Results Tarkwa Damang Corona
Ore milled/treated
(000 tonne)
- underground March 2011 - - -
December 2010 - - -
- surface March 2011 5,803 1,250 1,582
December 2010 5,746 1,254 1,495
- total March 2011 5,803 1,250 1,582
December 2010 5,746 1,254 1,495
Yield (grams per
tonne)
- underground March 2011 - - -
December 2010 - - -
- surface March 2011 1.0 1.4 2.1
December 2010 1.0 1.5 1.9
- combined March 2011 1.0 1.4 2.1
December 2010 1.0 1.5 1.9
Gold produced
(kilograms)
- underground March 2011 - - -
December 2010 - - -
- surface March 2011 5,787 1,787 3,362
December 2010 5,492 1,879 2,915
- total March 2011 5,787 1,787 3,362
December 2010 5,492 1,879 2,915
Operating costs
(Rand per tonne)
- underground March 2011 - - -
December 2010 - - -
- surface March 2011 127 221 182
December 2010 123 207 187
- total March 2011 127 221 182
December 2010 123 207 187
Australasia Region
Australia
Operating Results Total St Ives Agnew
Ore milled/treated
(000 tonne)
- underground March 2011 652 501 151
December 2010 600 434 166
- surface March 2011 1,151 1,118 33
December 2010 1,244 1,202 42
- total March 2011 1,803 1,619 184
December 2010 1,844 1,636 208
Yield (grams per tonne)
- underground March 2011 4.9 4.1 7.7
December 2010 5.4 4.4 8.2
- surface March 2011 1.5 1.5 0.4
December 2010 1.6 1.7 0.6
- combined March 2011 2.7 2.3 6.4
December 2010 2.9 2.4 6.6
Gold produced
(kilograms)
- underground March 2011 3,216 2,049 1,167
December 2010 3,258 1,905 1,353
- surface March 2011 1,710 1,698 12
December 2010 2,010 1,984 26
- total March 2011 4,926 3,747 1,179
December 2010 5,268 3,889 1,379
Operating costs
(Rand per tonne)
- underground March 2011 796 661 1,242
December 2010 811 703 1,092
- surface March 2011 311 308 430
December 2010 283 287 150
- total March 2011 486 417 1,097
December 2010 454 398 901
# March quarter includes 83,000 tonnes (December quarter includes 75,000
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
March 2011 quarter
Carbon
Reef Leader Kloof Main VCR
Advanced (m) 4,657 207 1,100 5,581
Advanced on reef (m) 1,062 91 166 1,059
Sampled (m) 963 75 183 894
Channel width (cm) 67 101 113 108
Average value - (g/t) 27.7 17.5 6.3 28.3
- (cm.g/t) 1,860 1,777 709 3,046
December 2010 quarter
Carbon
Reef Leader Kloof Main VCR
Advanced (m) 4,992 76 1,186 5,722
Advanced on reef (m) 901 - 307 849
Sampled (m) 711 - 399 732
Channel width (cm) 74 - 97 141
Average value - (g/t) 24.6 - 5.4 18.7
- (cm.g/t) 1,813 - 523 2,648
Beatrix
March 2011 quarter
Reef Beatrix Kalkoenkrans
Advanced (m) 3,586 1,549
Advanced on reef (m) 1,180 315
Sampled (m) 870 315
Channel width (cm) 104 79
Average value - (g/t) 10.5 15.3
- (cm.g/t) 1,092 1,212
December 2010 quarter
Reef Beatrix Kalkoenkrans
Advanced (m) 4,436 1,755
Advanced on reef (m) 1,196 426
Sampled (m) 1,290 411
Channel width (cm) 101 101
Average value - (g/t) 8.1 17.5
- (cm.g/t) 815 1,763
South Deep March 2011 quarter December 2010 quarter
Reef Elsburgs 1,2 Elsburgs 1,2
Main Advanced (m) 2,842 3,090
- Main above 95 level (m) 1,699 1,987
- Main below 95 level (m) 1,143 1,103
Shaft sinking (m) - 6
Advanced on reef (m) 1,537 1,909
- Square metres
effectively de-stressed (m2) 1,316 1,317
- Reserve value
de-stressed (g/t) 7.2 7.0
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 SW 1A 1NP
United Kingdom
Tel: (+44)(20) 7499 3916
Fax: (+44)(20) 7491 1989
American Depository Receipts Transfer
Agent
Bank of New York Mellon
BNY Mellon Shareowner Services
P O Box 358516
Pittsburgh, PA15252-8516
US toll-free telephone: (1)(888) 269 2377
Tel: (+1) 201 680 6825
e-mail: shrrelations@bnymellon.com
Gold Fields Limited
Incorporated in the Republic of South
Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN - ZAE 000018123
Directors
M A Ramphele (Chair) K Ansah # A R Hill ! D N Murray G M Wilson
N J Holland *+
(Chief Executive
Officer) CA Carolus R P Menell D M J Ncube
PA Schmidt +
(Chief Financial
Officer) R Danino ** M S Moloko R L Pennant-Rea *
* British # Ghanaian ! Canadian
+ Non-independent Director
** Peruvian Independent Director
Investor Enquiries
Zakira Amra
Tel: (+2711) 562 9775
Mobile: (+27) 79 694 0267
e-mail: zakira.amra@goldfields.co.za
Nikki Catrakilis-Wagner
Tel: (+2711) 562 9706
Mobile: (+27) 83 309 6720
e-mail: nikki.catrakilis-
wagner@goldfields.co.za
Willie Jacobsz
Tel: (+508) 839 1188
Mobile: (+857) 241 7127
e-mail: willie.jacobsz@gfexpl.com
Media Enquiries
Sven Lunsche
Tel: (+2711) 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
P O 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-5.30pm 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
SW X: GOLI
Forward looking statements
Certain statements in this document constitute "forward looking statements"
within the meaning of Section 27A of the US Securities Act of 1933 and Section
21E of the US Securities Exchange Act of 1934.
Such forward looking statements involve known and unknown risks, uncertainties
and other important factors that could cause the actual results, performance
or achievements of the company to be materially different from the future
results, performance or achievements expressed or implied by such forward
looking statements. Such risks, uncertainties and other important factors
include among others: economic, business and political conditions in South
Africa, Ghana, Australia, Peru and elsewhere; the ability to achieve
anticipated efficiencies and other cost savings in connection with past and
future acquisitions, 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 eventsor
circumstances after the date of this document or to reflect the occurrence of
unanticipated events.
Sponsor:
J.P. Morgan Equities Limited
Date: 19/05/2011 08:00:04 Supplied by www.sharenet.co.za
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