Wrap Text
GFI - Gold Fields Limited - Improved earnings reflect increased production and a
higher gold price
Gold Fields Limited
Incorporated in the Republic of South Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN - ZAE 000018123
IMPROVED EARNINGS REFLECT INCREASED PRODUCTION AND A HIGHER GOLD PRICE
JOHANNESBURG. 11 August 2011, Gold Fields Limited (NYSE & JSE: GFI) today
announced net earnings for the June quarter of R1,267 million compared with
R1,100 million in the March quarter and earnings of R900 million in the June
2010 quarter. In US dollar terms net earnings for the June quarter were US$186
million, compared with US$158 million in the March quarter and earnings of
US$120 million in the June 2010 quarter.
June 2011 quarter salient features:
- Group attributable equivalent gold production of 872,000 ounces, 5 per cent
higher than the March quarter;
- Total cash cost of R177,934 per kilogram (US$816 per ounce);
- NCE margin constant at 21 per cent;
- Programme to acquire minorities in Peru and Ghana completed; and
- 5 year US$1 billion loan facility secured.
Interim dividend of 100 SA cents per share is payable on 5 September 2011.
Statement by Nick Holland, Chief Executive Officer of Gold Fields:
"Gold Fields had earnings growth of 15 per cent to R1,267 million against a gold
price increase of 5 per cent. Production increased by 5 per cent to 872,000 gold
equivalent ounces compared with the March 2011 quarter, despite unscheduled
production interruptions at St Ives in Australia and at KDC in South Africa, as
well as the six public holidays in South Africa.
Costs during the June quarter were impacted by the annual increase in
electricity tariffs in South Africa compounded by seasonally-adjusted winter
tariffs. Despite this the Group managed to contain net operating costs to R5.1
billion, an increase of 5 per cent on the March quarter, with all four Regions
benefitting from the Business Process Re-engineering (BPR) programme introduced
in the second half of 2010. Excluding the effects of the electricity tariff
hikes, which accounted for R180 million (US$27 million) of the cost increase
during the June quarter, net operating costs would have risen by a mere 1 per
cent. The NCE margin for the June quarter was maintained at 21 per cent compared
with the March quarter. For the six months ended June 2011 the NCE margin
improved to 21 per cent compared with a 14 per cent NCE margin for the same
period last year, with the improvement largely attributable to the 25 per cent
rise in the dollar gold price over the same period.
Safety remains our single most important operational challenge, particularly in
the South Africa region where we regrettably recorded seven fatal injuries
during the June quarter. This brings the total number of fatalities for the
first six months of the year to 13 compared with 11 fatalities during the
previous six months. We are concerned that, following three years of consistent
and significant improvements in safety at our South African mines, the trend has
levelled off. We remain committed to improving safety with an immediate focus on
interventions to engineer-out risk, improve compliance to standards, and bring
about further behavioural changes in support of safe working practices by all
employees.
During the June quarter we made significant progress at our four major
international growth projects as part of our plan to achieve five million
quality gold equivalent ounces, in production or in development by 2015.
In addition our South Deep project in South Africa continues to progress towards
its target of 750,000 ounces per annum at full production.
At the Far South East project in the Philippines, where Gold Fields has an
option to acquire 60 per cent, we now have eight underground diamond drill rigs
turning. During the quarter, initial results confirmed our preliminary mining
model and identified significant additional mineralisation outside of the model,
both laterally and at depth. Our aim is to deliver a first resource model, by
March 2012. Concurrently we are making good progress on a range of technical,
social and environmental studies required to advance this project.
We are also on course to complete a feasibility study for the Chucapaca project
in Peru by mid-2012. Twelve drill rigs are onsite to complete Phase 2 of our
drilling programme and we expect to complete an updated resource model in the
last quarter of this year.
The Arctic Platinum project in Finland has progressed to a pre-feasibility
consolidation study (PFS) which will review and update the previous feasibility
study, completed in 2005. The PFS is set to be completed by December 2011.
Metallurgical test work at the pilot plant, which forms part of the PFS is
progressing on schedule and is expected to be completed by the end of this year.
At the Yanfolila project in Mali the resource definition drilling programme
continued apace with four drill rigs turning. We expect to complete a scoping
study on this project in the third quarter of this year.
On 20 June 2011 our shareholders overwhelmingly approved the acquisition of
IamGold`s indirect 18.9 per cent stake in the Tarkwa and Damang mines in Ghana
which has increased our shareholding from 71.1 per cent to 90 per cent. This
acquisition and adds about 180,000 ounces to our annual attributable production
and 2.14 million ounces of reserves."
Stock data
Number of shares in issue
- at end June 2011 722,957,368
- average for the quarter 721,981,479
Free Float 100 per cent
ADR Ratio 1:1
Bloomberg / Reuters GFISJ / GFLJ.J
JSE Limited - (GFI)
Range - Quarter ZAR92.90 - ZAR128.40
Average Volume - Quarter 2,156,049 shares / day
NYSE - (GFI)
Range - Quarter US$13.80 - US$18.55
Average Volume - Quarter 4,043,453 shares / day
SOUTH AFRICAN RAND
Key statistics
Six months to
June June June
2010 2011 2010
Gold produced* 52,619 52,927 27,929 kg
Total cash cost 167,785 173,243 166,215 R/kg
Notional cash expenditure 238,614 251,078 235,223 R/kg
Tonnes milled/treated 29,126 29,645 14,863 000
Revenue 277,152 319,031 287,454 R/kg
Operating costs 339 344 343 R/tonne
Operating profit 6,308 8,548 3,738 Rm
Operating margin 39 46 42 %
NCE margin 14 21 18 %
Net earnings 1,216 2,367 900 Rm
172 328 128 SA c.p.s.
Headline earnings 1,331 2,372 1,039 Rm
189 329 147 SA c.p.s.
Net earnings excluding gains
and losses on foreign
exchange, financial 1,266 2,478 945 Rm
instruments, non-recurring 179 344 134 SA c.p.s.
Quarter
March June
2011 2011
Gold produced* 25,808 27,118 kg
Total cash cost 168,455 177,934 R/kg
Notional cash expenditure 245,326 256,692 R/kg
Tonnes milled/treated 14,458 15,187 000
Revenue 311,708 326,206 R/kg
Operating costs 343 346 R/tonne
Operating profit 4,091 4,457 Rm
Operating margin 46 47 %
NCE margin 21 21 %
Net earnings 1,100 1,267 Rm
153 175 SA c.p.s.
Headline earnings 1,101 1,270 Rm
153 176 SA c.p.s.
Net earnings excluding gains
and losses on foreign
exchange, financial 1,152 1,326 Rm
instruments, non-recurring 160 184 SA c.p.s.
UNITED STATES DOLLARS
Key statistics
Quarter
June March June
2011 2011 2010
Gold produced* oz (000) 872 830 898
Total cash cost $/oz 816 751 688
Notional cash expenditure $/oz 1,178 1,093 974
Tonnes milled/treated 000 15,187 14,458 14,863
Revenue $/oz 1,496 1,389 1,191
Operating costs $/tonne 51 49 46
Operating profit $m 656 586 496
Operating margin % 47 46 42
NCE margin % 21 21 18
Net earnings $m 186 158 120
US c.p.s. 26 22 17
Headline earnings $m 187 158 138
US c.p.s. 26 22 20
Net earnings excluding gains
$m 195 165 125
and losses on foreign
exchange, financial
instruments, non-recurring
items and share of US c.p.s. 27 23 18
profit/(loss) of associates
after royalties and taxation
Six months to
June June
2011 2010
Gold produced* oz (000) 1,702 1,691
Total cash cost $/oz 783 696
Notional cash expenditure $/oz 1,135 990
Tonnes milled/treated 000 29,645 29,126
Revenue $/oz 1,442 1,148
Operating costs $/tonne 50 45
Operating profit $m 1,242 840
Operating margin % 46 39
NCE margin % 21 14
Net earnings $m 344 163
US c.p.s. 48 23
Headline earnings $m 345 178
US c.p.s. 48 25
Net earnings excluding gains $m 360 169
and losses on foreign
exchange, financial
instruments, non-recurring
items and share of US c.p.s. 50 23
profit/(loss) of associates
after royalties and taxation
* All of the key statistics given above are managed figures, except for gold
produced which is attributable equivalent production. All operations are wholly
owned except for Tarkwa and Damang in Ghana (71.1 per cent) and Cerro Corona in
Peru (98.5 per cent). Gold produced (and sales) throughout this report includes
copper gold equivalents of approximately 6 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 seven fatalities at the South Africa region and one fatality
at Tarkwa in the West Africa region during the quarter. At the South Africa
region, three accidents were seismic related and four were due to gravity falls
of ground.
The Group`s fatal injury frequency rate regressed from 0.13 to 0.20. The lost
day injury frequency rate regressed from 3.76 to 4.86 and the days lost
frequency rate regressed from 171 to 201. The recent trend in our rates is
deeply concerning.
Despite the regressions, there have been significant achievements during the
quarter in the Group. KDC again achieved one million fatality free shifts. Our
Cerro Corona operation in Peru continues its sterling safety performance, with
no lost day injuries recorded since 2009. St Ives, Agnew and Damang have also
reported zero lost day injuries for the quarter.
The strategy to eliminate fatalities in the Group remains unchanged with two
areas of focus, being engineering out the risk and ensuring compliance to
internal standards.
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.
Financial review
Quarter ended 30 June 2011 compared with quarter ended 31 March 2011
Revenue
Attributable gold production increased by 5 per cent from 830,000 ounces in the
March quarter to 872,000 ounces in the June quarter. At the South African
operations, production increased by 9 per cent from 411,000 ounces to 447,000
ounces. Attributable gold production at the West African operations decreased by
3 per cent from 173,000 ounces to 168,000 ounces. Attributable equivalent gold
production at the South American operation increased by 13 per cent from 87,000
ounces to 98,000 ounces due to the buy-out of minority shares which increased
our average interest for the quarter from 80.7 to 96.6 per cent. At the
Australian operations, gold production increased marginally from 158,000 ounces
to 159,000 ounces.
In the South Africa region, at KDC, gold production increased by 4 per cent from
262,600 ounces (8,169 kilograms) in the March quarter to 272,500 ounces (8,475
kilograms) in the June quarter due to an increase in tonnes milled offset by a 9
per cent reduction in underground yield which is believed to be temporary and
localised. At Beatrix, gold production increased by 32 per cent from 74,400
ounces (2,314 kilograms) to 98,000 ounces (3,048 kilograms) in line with an
increase in underground volumes. At South Deep, production increased by 3 per
cent from 74,000 ounces (2,301 kilograms) to 76,100 ounces (2,366 kilograms).
At the West Africa region, managed gold production at Tarkwa decreased by 3 per
cent from 186,100 ounces to 180,800 ounces for the quarter mainly due to
decreased CIL throughput at a lower head grade. At Damang, gold production
decreased by 2 per cent from 57,500 ounces to 56,300 ounces due to lower mining
volumes from the higher grade Damang pit cutback.
At the South America region, equivalent production at Cerro Corona decreased by
7 per cent from 108,100 equivalent ounces in the March quarter to 101,000
equivalent ounces in the June quarter due to the lower copper prices relative to
the gold prices.
At the Australasia region, St Ives` gold production decreased by 10 per cent
from 120,500 ounces to 108,700 ounces due to a decrease in processing volumes as
a result of a SAG mill failure. At Agnew gold production increased by 33 per
cent from 37,900 ounces to 50,400 ounces due to an increase in underground ore
mined and a higher head grade.
The average quarterly US Dollar gold price achieved increased from US$1,389 per
ounce in the March quarter to US$1,496 per ounce in the June quarter. The
average Rand/US Dollar exchange rate at R6.78 was 3 per cent stronger than the
March quarter level of R6.98, while the average Australian Dollar exchange rate
strengthened against the US Dollar by 6 per cent during the quarter to A$1.00 =
US$1.06. The resultant rand gold price increased from R311,708 per kilogram to
R326,206 per kilogram.
Revenue increased from R8,969 million (US$1,285 million) in the March quarter to
R9,581 million (US$1,411 million) in the June quarter due to the increase in
production and the higher gold price received.
Operating costs
Net operating costs increased by 5 per cent from R4,878 million (US$699 million)
in the March quarter to R5,124 million (US$755 million) in the June quarter.
Total cash cost increased by 6 per cent from R168,455 per kilogram (US$751 per
ounce) to R177,934 per kilogram (US$816 per ounce).
At the South Africa region, net operating costs increased by 10 per cent from
R2,783 million (US$399 million) to R3,074 million (US$453 million) mainly due to
the 28 per cent annual electricity price increase together with one month of
significantly higher winter tariffs. Excluding the impact of the higher
electricity tariffs, costs would only have increased by R111 million (US$16
million) or 4 per cent. The higher operating costs were partially offset by
higher production resulting in total cash cost increasing by only 3 per cent
from R213,759 per kilogram (US$953 per ounce) to R220,261 per kilogram (US$1,010
per ounce).
At the West Africa region, net operating costs were similar at US$122 million
(R825 million). Total cash cost at the West African operations increased from
US$521 per ounce in the March quarter to US$564 per ounce in the June quarter
due to the lower production and higher royalties.
At Cerro Corona in South America, net operating costs decreased from US$44
million (R305 million) to US$38 million (R258 million). This decrease was mainly
due to a decrease in the workers` statutory participation in profits. Total cash
cost increased from US$387 per ounce in the March quarter to US$408 per ounce in
the June quarter due to lower equivalent production produced and sold, partially
offset by lower costs.
At the Australasia region, net operating costs were similar at A$135 million
(R967 million). Total cash cost for the region increased from A$835 per ounce
(US$838 per ounce) to A$858 per ounce (US$909 per ounce).
Operating margin
The net effect of the changes in revenue and costs, after taking into account
gold-in-process movements, was a 9 per cent increase in operating profit from
R4,091 million (US$586 million) in the March quarter to R4,457 million (US$656
million) in the June quarter. The Group operating margin at 47 per cent was one
percentage point higher than the March quarter. The margin at the South African
operations increased from 30 per cent to 33 per cent. At the West African
operations the margin increased from 64 per cent to 66 per cent. At Cerro
Corona in South America the margin increased from 72 per cent to 73 per cent and
at the Australian operations the margin increased from 39 per cent to 40 per
cent.
Amortisation
Amortisation increased from R1,240 million (US$178 million) in the March quarter
to R1,277 million (US$188 million) in the June quarter as a result of the
increase in production.
Other
Net interest paid of R32 million (US$5 million) in the June quarter compares
with net interest paid of R41 million (US$6 million) in the March quarter. In
the June quarter interest paid of R88 million (US$13 million) was partly offset
by interest received of R39 million (US$6 million) and interest capitalised of
R17 million (US$2 million). This compares with interest paid of R116 million
(US$17 million), partly offset by interest received of R55 million (US$8
million) and interest capitalised of R20 million (US$3 million) in the March
quarter.
The share of profit of associates after taxation of R1 million (US$0 million) in
the June quarter compares with a share of loss of R4 million (US$1 million) in
the March quarter. The June quarter`s profit and March quarter`s loss both
related to the Group`s 34.9 per cent interest in Rand Refinery.
The loss on foreign exchange of R19 million (US$3 million) in the June quarter
compares with a gain of R3 million (US$0 million) in the March quarter. These
differences relate to the conversion of offshore cash holdings into their
functional currencies.
The gain on financial instruments of R25 million (US$4 million) in the June
quarter, compares with R6 million (US$1 million) in the March quarter. These
gains mainly related to the receipt of 15 million shares in Timpetra Resources
Limited (an Australian listed junior exploration company), in exchange for
Central Victoria tenements, an Australian exploration project.
Share based payments of R123 million (US$18 million) were similar to the March
quarter.
Other costs increased from R76 million (US$11 million) in the March quarter to
R85 million (US$13 million) in the June quarter mainly due to transaction costs
and fees incurred on the buy-out of minorities in Peru.
Exploration
Exploration expenditure increased from R139 million (US$20 million) in the March
quarter to R214 million (US$31 million) in the June quarter mainly due to
increased expenditure at Woodjam, Yanfolila, Hualgayoc and East Lachlan
exploration projects.
Refer to the exploration and corporate development section of this report for
more detail on exploration activities.
Feasibility and evaluation costs
Feasibility and evaluation costs decreased from R27 million (US$4 million) in
the March quarter to R17 million (US$3 million) in the June quarter mainly due
to timing of expenditure at the Far South East (FSE) project in the Philippines.
Non-recurring items
The non-recurring items of R101 million (US$15 million) in the June quarter and
the R83 million (US$12 million) in the March quarter were mainly due to
voluntary separation packages, business process re-engineering and restructuring
costs at all our operations.
Royalties
Government royalties increased from R165 million (US$24 million) in the March
quarter to R236 million (US$35 million) in the June quarter. The higher royalty
payment in the June quarter was mainly due to the increase in royalty from 3 per
cent to 5 per cent at the Ghanaian operations with effect from 1 April 2011 and
the higher revenue on which royalties are calculated.
Taxation
Taxation for the quarter amounted to R866 million (US$128 million) compared with
R780 million (US$112 million) in the March quarter in line with the higher
taxable income.
Normal taxation decreased from R600 million (US$86 million) to R521 million
(US$77 million). Deferred taxation increased from R180 million (US$26 million)
in the March quarter to R346 million (US$51 million) in the June quarter.
Earnings
Net earnings attributable to owners of the parent amounted to R1,267 million
(US$186 million) or 175 SA cents per share (US$0.26 per share), compared with
earnings of R1,100 million (US$158 million) or 153 SA cents per share (US$0.22
per share) in the March quarter.
Headline earnings i.e. earnings excluding the after tax effect of asset sales,
impairments and the sale of investments, amounted to R1,270 million (US$187
million) or 176 SA cents per share (US$0.26 per share), compared with earnings
of R1,101 million (US$158 million) or 153 SA cents per share (US$0.22 per share)
in the March 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 R1,326 million (US$195 million) or 184 SA
cents per share (US$0.27 per share), compared with earnings of R1,152 million
(US$165 million) or 160 SA cents per share (US$0.23 per share) reported in the
March quarter.
Cash flow
Cash inflow from operating activities for the quarter amounted to R2,954 million
(US$436 million), compared with R2,783 million (US$398 million) in the March
quarter as a result of the higher earnings.
In the June quarter dividends of R7 million (US$1 million) were paid to non-
controlling interest holders at Cerro Corona. This compared with dividends of
R506 million (US$73 million) paid to owners of the parent and R59 million (US$9
million) paid to non-controlling shareholders at Damang in the March quarter.
Capital expenditure increased from R2,069 million (US$296 million) in the March
quarter to R2,285 million (US$336 million) in the June quarter.
At the South Africa region, capital expenditure increased from R995 million
(US$143 million) in the March quarter to R1,169 million (US$172 million) in the
June quarter mainly due to timing of expenditure. Capital expenditure at South
Deep amounted to R472 million (US$69 million) in the June quarter compared with
R411 million (US$59 million) in the March 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 R73 million more at R546 million. KDC`s ORD increased from R380 million to
R436 million and Beatrix`s ORD increased from R93 million to R110 million
quarter on quarter in line with the increase in waste development metres.
At the West Africa region, capital expenditure decreased from US$84 million to
US$69 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 was similar at US$16 million.
At the Australasia region, capital expenditure increased from A$39 million to
A$56 million for the quarter. St Ives increased from A$24 million to A$39
million with the majority of the expenditure on mine development (A$24 million)
on Athena and Hamlet, and exploration (A$8 million). At Agnew, capital
expenditure increased from A$15 million to A$17 million.
The balance of the buy-out of non-controlling interest holders at La Cima
amounted to R1,243 million (US$184 million) representing a further 8.8 per cent
of the issued shares of Gold Fields La Cima, taking the Group`s holding to 98.5
per cent at the end of the June quarter. This compares with R1,368 million
(US$198 million) in the March quarter which related to the buy-out of 9 per cent
of the issued shares of Gold Fields La Cima which took the Group`s holding up to
89.7 per cent at the end of the March quarter.
Buy-out of non-controlling interest holders at Ghana amounted to R4,520 million
(US$667 million) and represented 18.9 per cent of the issued shares of Gold
Fields Ghana and Abosso Goldfields taking the Group`s holding to 90.0 per cent
at quarter end. The additional attributable ounces associated with this buy-out
will be accounted for from the September quarter.
Proceeds on 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 June quarter amounted to R2.8
billion (US$404 million) compared with R2.3 billion (US$330 million) in the
March quarter. Loans received in the June quarter amounted to R3.9 billion
(US$570 million) mainly as a result of draw-downs on offshore facilities for the
purchase of the Ghanaian minorities. Loans repaid amounted to R1.2 billion
(US$174 million), consisting primarily of the final repayment of R610 million
(US$90 million) of preference shares issued, R276 million (US$40 million)
repayment on an offshore facility, R128 million (US$19 million) scrip lending
repayment and a partial repayment of the non-recourse term loan at Cerro Corona
of R69 million (US$10 million).
Net cash outflow for the June quarter at R2,288 million (US$347 million)
compared with an inflow of R1,074 million (US$154 million) in the March quarter.
After accounting for a positive translation adjustment of R29 million (US$23
million) on offshore cash balances, the net cash outflow for the June quarter
was R2,258 million (US$324 million). The cash balance at the end of June was
R4,345 million (US$631 million) compared with R6,603 million (US$954 million) at
the end of March.
Notional cash expenditure (NCE)
Notional cash expenditure is defined as operating costs (including general and
administration) plus capital expenditure, which includes near-mine exploration
and capitalised feasibility costs, and is reported on a per kilogram and per
ounce basis - refer to the detailed table on page 24 of this report.
NCE reflects 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 June quarter amounted to R256,692 per kilogram (US$1,178
per ounce) compared with R245,326 per kilogram (US$1,093 per ounce) in the March
quarter. The NCE margin for the Group remained at 21 per cent. Operational
NCE, that is excluding Corporate and capitalised project expenditure, which
includes feasibility costs at Chucapaca and APP, increased from R241,716 per
kilogram (US$1,077 per ounce) in the March quarter to R251,790 per kilogram
(US$1,155 per ounce) in the June quarter.
At the South Africa region, NCE increased from R295,494 per kilogram (US$1,317
per ounce) to R305,501 per kilogram (US$1,401 per ounce). The NCE margin of 7
per cent in the June quarter compares with 5 per cent in the March quarter. The
higher margin was due to the increase in production and higher gold price,
partially offset by the increase in operating costs and higher capital
expenditure. NCE excluding the funding of South Deep increased from R272,250 per
kilogram (US$1,213 per ounce) in the March quarter to R280,986 per kilogram
(US$1,289 per ounce) in the June quarter. The NCE margin excluding South Deep
was 15 per cent in the June quarter compared with 13 per cent in the March
quarter.
At the West Africa region, NCE decreased from US$938 per ounce to US$885 per
ounce and the NCE margin increased from 32 per cent to 41 per cent due to a
decrease in operating costs and lower capital expenditure.
At the South America region, NCE decreased from US$537 per ounce in the March
quarter to US$526 per ounce in the June quarter due to decreased operating
costs. The NCE margin increased from 61 per cent to 62 per cent.
At the Australasia region, NCE increased from A$1,035 per ounce (US$1,038 per
ounce) in the March quarter to A$1,195 per ounce (US$1,265 per ounce) in the
June quarter due to increased operating costs and increased capital expenditure,
resulting in an NCE margin of 16 per cent compared with 26 per cent in the March
quarter.
Balance sheet (Investments and net debt)
Investments decreased from R1,079 million (US$160 million) at 31 December 2010
to R1,013 million (US$147 million) at 30 June 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 decreased from R5,464 million (US$810 million) at the end of
the December quarter to R4,345 million (US$631 million) at the end of the June
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 R10,208 million (US$1,482 million) in the June quarter, as a result
of borrowings to fund the buy-out of minority shareholders in La Cima and Ghana.
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 were established during
financial 2008 to optimise costs and revenue 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 project 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 improved from 6.1 metres to 6.7 metres in the June quarter.
The focus will remain on improvement of flexibility and panel availability
factors for sustainable safe production.
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.
The flat-end metres advance achieved by mechanised means was similar to the
previous quarter at 86 per cent. Planning is being optimised in such a manner
that a drill rig can service multiple ends to improve utilisation of the rig and
thus improve strike rate and efficiency.
NCE full potential (Project 3M)
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 to be achieved through various programmes which include
productivity improvement initiatives, continued reduction in staff through
natural attrition and voluntary separation, and power cost savings initiatives.
This will assist in absorbing 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 in 2011.
The intent with BPR in 2011 is to mitigate as much of the anticipated mining
inflation increases as possible. Cost reductions of R35 million were achieved
in the June quarter, resulting in savings of R294 million since the initiative
started in mid-2010. These savings were mainly achieved by changing to a more
cost effective underground mining 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.
The number of measurements expressed as a percentage of noise measurements of
machinery/equipment emitting noise in excess of 110dB (A) is currently 0.3 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 units 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 (improved from 94 per cent to 99 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 (similar at 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 airways (similar at 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 (improved from 54 per cent to 60 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.
The re-treatment is 35 per cent completed.
Of the individual gravimetric dust sample measurements taken during the June
quarter, 98 per cent of individual samples were below the occupational exposure
limit of 0.1 milligrams per cubic metre, thus meeting the target of not less
than 95 per cent.
In March 2011, the South African Constitutional Court ruled that legislation
which limited employees` rights to claim compensation for certain diseases,
including silicosis, were 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
The June quarter has seen the consolidation of several productivity and
efficiency initiatives at Tarkwa which has resulted in savings of US$6 million
on BPR initiatives for the quarter. The main contributors were cost reductions
and drill yield improvement, i.e. increased volume blasted per drill metre. The
increased drill yield was achieved by using stronger explosives, increasing the
burden and spacing of drill patterns, while maintaining fragmentation
performance and increasing the blasted capital waste bench height from 6 metres
to 9 metres. This resulted in a US$2 million cost reduction against the 2010
baseline. The removal of bottlenecks at the North Heap leach facility has seen a
10 per cent improvement in tonnes processed against plan for the June quarter.
This was mainly due to a reduction in operational and mechanical down time and
the installation of three new large tertiary crushers commissioned during May.
Metallurgical initiatives focused on improving recovery in the CIL plant. During
the June quarter strategic sourcing and renegotiation of supply agreements for
basic chemicals, explosives, grinding media and mill liners resulted in US$1
million spend reduction on these items against the 2010 baseline. Drill and
blast efficiencies have improved by 20 per cent by optimising drill and blast
design parameters.
Focus for the September quarter will be directed at removing bottlenecks from
the mining operations and improving gold recovery at the North Heap leach
facility. This will be achieved by improving utilisation and availability of
mining equipment in order to maximise quality ore supply from the open pit to
the processing plants and improve capital strip tonnages. At the North Heap
leach facility the focus will be on optimising particle size distribution for
maximum gold liberation from crushed ore placed on the North Heap leach facility
as well as reducing gold in process currently on heaps, targeting a 10 per cent
reduction over the next two quarters.
Damang
Focus during the quarter was on harnessing the benefits realised from the
conversion from contractor to owner operation and owner maintenance. To date,
benefits of US$9 million were achieved of which US$7 million were realised in
the June quarter.
Phase 2 of the BPR commenced during the June quarter with the completion of a
full review of further potential improvement initiatives. The focus during the
September quarter will be on implementing the first phase of these additional
improvement projects.
Australasia region
St Ives
The focus at St Ives has been on direct costs and productivity improvements
within the existing site arrangements, including improvements in the heap leach
operation, Lefroy mill area and short-term interval controls in both the
underground and open pit operations. The second point of focus involved detailed
planning and implementation of owner mining for all underground ore extraction,
while still maintaining the contractor development model similar to Agnew.
Recently an agreement was reached with the primary underground contractor to
acquire a major portion of its site based employees, mining fleet and associated
equipment required to facilitate the transitioning into an owner mining
operation. This transition will be completed during the September 2011 quarter.
Further studies in the opportunities afforded by owner mining are being
undertaken at St Ives in other contractor areas to improve the cost structure
and productivities. A resource optimisation study is currently in progress to
identify further improvements in mine scheduling.
Agnew
At Agnew the main focus has been on securing productivity improvements from the
implementation of owner mining in mid-2010. This required focus on short-term
interval control at the underground operations, allowing for improved scheduling
of equipment and resources. This was a major contributor to a 25 per cent
increase in tonnes extracted from the underground mines in the June quarter
compared with the March quarter.
In addition, it was determined that a move from contractor to owner maintenance
would also lead to cost improvements. This change was implemented during the
June quarter. Currently contractors are only used for underground development
activities.
South Africa region
KDC
June March
2011 2011
Gold produced - 000`oz 272.5 262.6
- kg 8,475 8,169
Yield - underground - g/t 6.0 6.6
- combined - g/t 3.2 3.2
Total cash cost - R/kg 225,133 206,916
- US$/oz 1,033 922
Notional cash expenditure - R/kg 290,289 264,341
- US$/oz 1,332 1,178
NCE margin - % 11 15
Gold production increased from 262,600 ounces (8,169 kilograms) in the March
quarter to 272,500 ounces (8,475 kilograms) in the June quarter. This increase
was despite the negative impact of six public holidays, safety stoppages and
interventions following seismic related events.
Underground tonnes milled increased from 1.09 million tonnes in the March
quarter to 1.27 million tonnes in the June quarter. Underground yield decreased
from 6.6 grams per tonne to 6.0 grams per tonne largely due to lower grades
encountered on the western section of the mine. The decline in grade is
considered temporary and has improved since quarter end. Surface tonnes milled
decreased from 1.44 million tonnes to 1.38 million tonnes and the surface yield
decreased from 0.7 grams per tonne to 0.6 grams per tonne.
Main development increased by 2 per cent from 11,545 metres to 11,740 metres,
while on-reef development decreased by 14 per cent from 2,378 metres to 2,040
metres. The average development value decreased from 2,257 centimetre grams per
tonne in the March quarter to 1,991 centimetre grams per tonne in the June
quarter.
Operating costs increased from R1,721 million (US$247 million) to R1,915 million
(US$282 million). This increase was mainly due to the 28 per cent annual
electricity price increase, together with one month of higher winter tariff and
an increase in material costs as a result of increased underground mine support
costs. Total cash cost for the quarter increased from R206,916 per kilogram
(US$922 per ounce) in the March quarter to R225,133 per kilogram (US$1,033 per
ounce) in the June quarter.
Operating profit increased from R826 million (US$118 million) in the March
quarter to R862 million (US$127 million) in the June quarter.
Capital expenditure increased from R439 million (US$63 million) to R545 million
(US$80 million) mainly due to timing of expenditure on various projects and an
increase in ore reserve development.
Notional cash expenditure increased from R264,341 per kilogram (US$1,178 per
ounce) in the March quarter to R290,289 per kilogram (US$1,332 per ounce) in the
June quarter primarily as a result of the higher operating costs and capital
expenditure partially offset by higher production. The NCE margin decreased from
15 per cent to 11 per cent.
Beatrix
June March
2011 2011
Gold produced - 000`oz 98.0 74.4
- kg 3,048 2,314
Yield - underground - g/t 4.5 4.4
- combined - g/t 2.8 2.5
Total cash cost - R/kg 203,871 232,411
- US$/oz 935 1,036
Notional cash expenditure - R/kg 255,118 300,173
- US$/oz 1,170 1,338
NCE margin - % 23 4
Gold production increased from 74,400 ounces (2,314 kilograms) in the March
quarter to 98,000 ounces (3,048 kilograms) in the June quarter.
Underground tonnes milled increased from 499,000 tonnes to 648,000 tonnes, in
line with historic levels of output. Underground yield improved slightly from
4.4 grams per tonne to 4.5 grams per tonne. Surface tonnes milled increased from
409,000 tonnes to 422,000 tonnes. Surface yield was unchanged at 0.3 grams per
tonne.
Main development increased from 5,135 metres in the March quarter to 6,682
metres in the June quarter. The on-reef development increased from 1,495 metres
to 1,673 metres and the average main development value increased from 1,121
centimetre grams per tonne in the March quarter to 1,325 centimetre grams per
tonne in the June quarter, and reflects the value variability of the zones being
developed.
Operating costs increased from R549 million (US$79 million) in the March quarter
to R625 million (US$92 million) in the June quarter. This increase was mainly
due to increased production as well as the 28 per cent annual electricity price
increase, together with one month of higher winter tariffs. Total cash cost
decreased from R232,411 per kilogram (US$1,036 per ounce) to R203,871 per
kilogram (US$935 per ounce) due to the higher production.
Operating profit increased from R174 million (US$25 million) in the March
quarter to R385 million (US$56 million) in the June quarter.
Capital expenditure increased from R145 million (US$21 million) to R152 million
(US$23 million) with the majority spent on infrastructure upgrades, the methane
exploitation Clean Development Mechanism (CDM) project and ore reserve
development.
Notional cash expenditure decreased from R300,173 per kilogram (US$1,338 per
ounce) in the March quarter to R255,118 per kilogram (US$1,170 per ounce) in the
June quarter due to the increased production. The NCE margin increased from 4
per cent to 23 per cent due to higher production partially offset by higher
operating costs and higher capital expenditure.
South Deep project
June March
2011 2011
Gold produced - 000`oz 76.1 74.0
- kg 2,366 2,301
Yield - underground - g/t 5.3 5.7
- combined - g/t 3.4 4.0
Total cash cost - R/kg 223,922 219,296
- US$/oz 1,027 977
Notional cash expenditure - R/kg 424,894 401,391
- US$/oz 1,949 1,789
NCE margin - % (29) (28)
Gold production at South Deep increased from 74,000 ounces (2,301 kilograms) in
the March quarter to 76,100 ounces (2,366 kilograms) in the June quarter. This
was largely due to an 8 per cent increase in underground ore processed for the
quarter to 419,000 tonnes. Although the reef tonnes broken decreased from
415,000 to 360,000 tonnes in the June quarter, underground ore production was
augmented by clean-up of underground accumulations during the quarter.
Production on the mine was affected by intermittent public holidays during the
quarter and mechanised mining equipment breakdowns. In addition, a major fall
of ground in the 95 1 West main ramp severely hampered production, with the area
scheduled to be fully rehabilitated in the September quarter.
Total tonnes milled, which included 156,000 tonnes from surface sources and
115,000 tonnes of off-reef development, increased from 578,000 tonnes in the
March quarter to 690,000 tonnes in the June quarter. The higher volume of ore
processed was offset by lower grades, with the underground yield decreasing from
5.7 grams per tonne in the March quarter to 5.3 grams per tonne in the June
quarter. The lower yield was due to a decrease in higher grade benching and
long-hole stoping at 95 3 West and 2 West, as a result of breakdowns of long-
hole drilling machines.
Development increased from 2,842 metres in the March quarter to 3,063 metres in
the June quarter. The new mine capital development in phase 1, sub 95 level,
increased from 1,143 metres in the March quarter to 1,173 metres in the June
quarter. Development in the current mine areas above 95 level increased from
1,699 metres to 1,890 metres. Vertical development decreased from 261 metres in
the March quarter to 181 metres in the June quarter. De-stress mining increased
from 4,987 square metres in the March quarter to 5,529 square metres in the June
quarter.
Operating costs increased from R512 million (US$73 million) in the March quarter
to R533 million (US$79 million) in the June quarter. The increase was mainly due
to the 28 per cent annual electricity price increase, together with one month of
higher winter tariff. In addition, material costs increased due to the 19 per
cent increase in tonnes milled. Total cash cost increased from R219,296 per
kilogram (US$977 per ounce) to R223,922 per kilogram (US$1,027 per ounce).
Operating profit increased by 18 per cent from R207 million (US$30 million) in
the March quarter to R245 million (US$36 million) in the June quarter due to the
higher gold price received.
Capital expenditure increased from R411 million (US$59 million) in the March
quarter to R472 million (US$69 million) in the June quarter, in line with the
project plan. The majority of this capital expenditure was on development, the
ventilation shaft deepening and infrastructure, trackless equipment, as well as
construction of the new tailings dam facility.
Notional cash expenditure increased from R401,391 per kilogram (US$1,789 per
ounce) in the March quarter to R424,894 per kilogram (US$1,949 per ounce) in the
June quarter mainly due to the higher operating costs and higher capital
expenditure.
West Africa region
Ghana
Tarkwa
June March
2011 2011
Gold produced - 000`oz 180.8 186.1
Yield - heap leach - g/t 0.5 0.5
- CIL plant - g/t 1.4 1.5
- combined - g/t 1.0 1.0
Total cash cost - US$/oz 534 464
Notional cash expenditure - US$/oz 889 871
NCE margin - % 41 37
Gold production decreased from 186,100 ounces in the March quarter to 180,800
ounces in the June quarter. The lower production was as a result of decreased
CIL throughput at a lower head grade.
Total tonnes mined, including capital stripping, decreased from 29.3 million
tonnes in the March quarter to 28.9 million tonnes in the June quarter.
Production was affected by excessive rainfall during the quarter. Ore mined at
5.4 million tonnes was similar to the previous quarter. Mined grade at 1.23
grams per tonne was marginally lower than the 1.24 grams per tonne reported for
the March quarter. The strip ratio reduced from 4.36 in the March quarter to
4.33 in the June quarter.
The total feed to the CIL plant decreased from 2.94 million tonnes in the March
quarter to 2.92 million tonnes in the June quarter. Yield decreased from 1.5
grams per tonne to 1.4 grams per tonne. The CIL plant produced 129,400 ounces
for the June quarter compared with the record 138,500 ounces in the March
quarter.
Total feed to the North and South heap leach increased from 2.86 million tonnes
to 2.97 million tonnes and the yield increased from 0.52 grams per tonne to 0.54
grams per tonne. The High Pressure Grinding Roller (HPGR) at the South heap
leach processed 0.82 million tonnes, compared with 0.87 million tonnes in the
March quarter. The heap leach process produced 51,400 ounces, compared with
47,600 ounces in the March quarter. The increase was attributable to an increase
in gold placed on the heaps and improved dissolutions.
Net operating costs increased from US$83 million (R576 million) in the March
quarter to US$88 million (R596 million) in the June quarter. This was mainly
due to a lower gold-in-process credit in the June quarter and higher fuel
prices. Total cash cost increased from US$464 per ounce in the March quarter to
US$534 per ounce in the June quarter, mainly as a result of the decrease in
production and the increase in the royalty from 3 per cent to 5 per cent, with
effect from 1 April 2011.
Operating profit increased from US$175 million (R1,219 million) to US$185
million (R1,257 million).
Capital expenditure decreased from US$57 million (R396 million) in the March
quarter to US$52 million (R354 million) in the June quarter, with new mining
equipment, the tailings dam expansion and pre-stripping being the major items.
Notional cash expenditure increased from US$871 per ounce to US$889 per ounce
due to decreased production and increased costs. The NCE margin increased from
37 per cent to 41 per cent.
Damang
June March
2011 2011
Gold produced - 000`oz 56.3 57.5
Yield - g/t 1.4 1.4
Total cash cost - US$/oz 660 703
Notional cash expenditure - US$/oz 876 1,154
NCE margin - % 42 17
Gold production decreased from 57,500 ounces in the March quarter to 56,300
ounces in the June 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 for safety reasons whilst mining the East Ramp, which will allow
access to additional ore supply by increasing the mining width from the end of
the year.
Total tonnes mined, including capital stripping, increased from 5.1 million
tonnes in the March quarter to 5.7 million tonnes in the June 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 decreased from 1.3 million
tonnes to 1.2 million tonnes. Capital stripping for the quarter increased from
1.2 million tonnes to 2.3 million tonnes. The total strip ratio, including
capital strip, was 3.8 compared with the previous quarter`s 3.1.
Tonnes processed at 1.27 million tonnes were similar to the March quarter.
Net operating costs decreased from US$39 million (R274 million) in the March
quarter to US$34 million (R229 million) in the June quarter due to a US$7
million saving, mainly realised from a full quarter of owner mining, partially
offset by a gold-in-process charge of US$2 million. Total cash cost decreased
from US$703 per ounce to US$660 per ounce mainly due to the decrease in
operating cost.
Operating profit increased from US$40 million (R280 million) in the March
quarter to US$51 million (R348 million) in the June quarter.
Capital expenditure decreased from US$27 million (R187 million) to US$17 million
(R113 million) as a result of the owner mining project reaching completion.
Notional cash expenditure decreased from US$1,154 per ounce in the March quarter
to US$876 per ounce in the June quarter. The NCE margin increased from 17 per
cent to 42 per cent as a result of lower operating costs and capital
expenditure.
South America region
Peru
Cerro Corona
June March
2011 2011
Gold produced - 000`oz 41.1 40.6
Copper produced - tonnes 9,814 9,685
Total equivalent gold produced - 000` eq oz 101.0 108.1
Total equivalent gold sold - 000` eq oz 101.5 112.2
Yield - gold - g/t 0.8 0.8
- copper - % 0.60 0.64
- combined - g/t 1.8 2.1
Total cash cost - US$/eq oz 408 387
Notional cash expenditure - US$/eq oz 526 537
NCE margin - % 62 61
Gold price * - US$/oz 1,499 1,383
Copper price * - US$/t 9,176 9,648
* Average daily spot price for the period used to calculate total equivalent
gold ounces produced.
Gold produced increased from 40,600 ounces in the March quarter to 41,100 ounces
in the June quarter. Copper production increased from 9,685 tonnes to 9,814
tonnes. Despite this, equivalent production decreased from 108,100 ounces to
101,000 ounces due to lower copper prices relative to gold prices in the June
quarter. Concentrate with a payable content of 42,196 ounces of gold was sold at
an average price of US$1,502 per ounce and 9,998 tonnes of copper were sold at
an average price of US$8,444 per tonne, net of treatment and refining charges.
The higher gold and copper production in the June quarter was due to a 9 per
cent increase in ore processed (1.72 million tonnes compared with 1.58 million
tonnes in the previous quarter). The increased production was attributable to
higher plant availability during the June quarter and higher throughput.
Total tonnes mined increased from 3.29 million tonnes in the March quarter to
3.48 million tonnes in the June quarter. Ore mined at 1.71 million tonnes was 2
per cent higher than the 1.67 million tonnes in the previous quarter, reflecting
the higher plant availability and tonnage treated. The strip ratio for the June
quarter was 1.04, compared with 0.97 in the previous quarter.
Gold yield was similar to the previous quarter at 0.8 grams per tonne, and
copper yield was marginally lower at 0.60 per cent compared with 0.64 per cent
in the March quarter.
Net operating costs decreased from US$44 million (R305 million) in the March
quarter to US$38 million (R258 million) in the June quarter, mainly due to lower
workers` statutory participation in profits in line with lower earnings and a
lower gold-in-process charge. Total cash cost increased from US$387 per
equivalent ounce in the March quarter to US$408 per equivalent ounce in the June
quarter, primarily due to lower equivalent ounces sold during the June quarter.
Operating profit decreased from US$112 million (R785 million) in the March
quarter to US$104 million (R704 million) in the June quarter, due to the lower
spot copper price received during the June quarter.
Capital expenditure was similar at US$16 million (R106 million) with expenditure
mainly on the tailings facility.
Notional cash expenditure decreased from US$537 per equivalent ounce in the
March quarter to US$526 per equivalent ounce in the June quarter mainly due to
the effect of the lower working costs. The NCE margin increased from 61 per cent
to 62 per cent.
Australasia region
Australia
St Ives
June March
2011 2011
Gold produced - 000`oz 108.7 120.5
Yield - heap leach - g/t 0.5 0.5
- milling - g/t 2.7 2.9
- combined - g/t 2.0 2.3
Total cash cost - A$/oz 959 860
- US$/oz 1,015 862
Notional cash expenditure - A$/oz 1,295 997
- US$/oz 1,371 1,000
NCE margin - % 9 28
Gold production decreased from 120,500 ounces in the March 2011 quarter to
108,700 ounces in the June 2011 quarter because of unplanned downtime at the
Lefroy mill due to a failure on the SAG mill motor and a decrease in high grade
underground ore mined this quarter.
At the underground operations, ore mined decreased from 456,700 tonnes at 4.2
grams per tonne in the March quarter to 401,600 tonnes at 4.5 grams per tonne in
the June quarter. The tonnage reduction reflects the scheduled closure of the
Belleisle mine in May. Belleisle is being replaced by the Athena mine which
will reach commercial levels of production during the September quarter.
Overall grade improved due to increased tonnage and grades delivered from
Athena.
At the open pit operations total ore tonnes mined increased from 948,000 tonnes
at 1.9 grams per tonne in the March quarter to 1,038,000 tonnes at 1.7 grams per
tonne in the June quarter. The reduction in grade was due to lower grades
realised from Apollo, as this pit reached the end of its life.
Gold produced from the Lefroy mill decreased from 113,600 ounces in the March
quarter to 100,700 ounces in the June quarter, due to the SAG mill motor
failure, resulting in a 6 per cent reduction in throughput. Tonnes processed
decreased from 1.22 million tonnes in the March quarter to 1.15 million tonnes
in the June quarter. Mill head grade decreased marginally from 3.0 grams per
tonne in the March quarter to 2.9 grams per tonne in the June quarter,
reflecting an increase in open pit material treated during the June quarter.
Production from the heap leach facility increased from 6,900 ounces in the March
quarter to 8,000 ounces in the June quarter, due to an increase in throughput of
135,000 tonnes, from 395,000 tonnes to 530,000 tonnes.
Net operating costs decreased from A$105 million (R736 million) in the March
quarter to A$103 million (R740 million) in the June quarter. This decrease was
primarily due to an inventory draw-down in the March quarter. Total cash cost
increased from A$860 per ounce (US$862 per ounce) to A$959 per ounce (US$1,015
per ounce) due to the lower gold production.
Operating profit decreased from A$62 million (R435 million) to A$51 million
(R365 million), due to the decrease in gold production.
Capital expenditure increased from A$24 million (R166 million) to A$39 million
(R275 million) due primarily to mine development (A$24 million) and exploration
(A$8 million). Increased spend on mine development occurred at Athena mine, the
new Hamlet underground mine and at the Formidable open pit.
Notional cash expenditure increased from A$997 per ounce (US$1,000 per ounce) in
the March quarter to A$1,295 per ounce (US$1,371 per ounce) in the June quarter.
The NCE margin decreased from 28 per cent to 9 per cent due to higher capital
expenditure and lower production.
Agnew
June March
2011 2011
Gold produced - 000`oz 50.4 37.9
Yield - g/t 6.8 6.4
Total cash cost - A$/oz 641 758
- US$/oz 679 760
Notional cash expenditure - A$/oz 979 1,155
- US$/oz 1,037 1,158
NCE margin - % 31 17
Gold production increased from 37,900 ounces in the March quarter to 50,400
ounces in the June quarter. Ore mined from underground increased from 147,000
tonnes at a head grade of 8.2 grams per tonne in the March quarter to 183,000
tonnes at a head grade of 8.8 grams per tonne in the June quarter. Ore
production commenced at the Songvang open pit in the June quarter, producing
90,000 ore tonnes at a head grade of 1.7 grams per tonne.
Tonnes processed increased from 184,000 tonnes in the March quarter to 231,000
tonnes in the June quarter, with an increase in yield from 6.4 grams per tonne
to 6.8 grams per tonne as underground production and head grade increased. The
tonnes mined from underground were supplemented with the lower grade surface
material from the Songvang open pit.
Net operating costs increased from A$29 million (R204 million) in the March
quarter to A$32 million (R227 million) in the June quarter, mainly due to ore
production from the Songvang open pit during the quarter. Total cash cost per
ounce decreased from A$758 per ounce (US$760 per ounce) to A$641 per ounce
(US$679 per ounce) primarily due to the increased production. The increased
underground production came without any increase in underground mining costs
quarter on quarter.
Operating profit increased from A$24 million (R166 million) in the March quarter
to A$41 million (R291 million) in the June quarter.
Capital expenditure increased from A$15 million (R105 million) in the March
quarter to A$17 million (R124 million) in the June quarter. This included A$3
million spent on the Songvang open pit project and A$2 million on the new
ventilation system, which includes a return air shaft and primary ventilation
fans for the extension of Waroonga underground mine.
Notional cash expenditure decreased from A$1,155 per ounce (US$1,158 per ounce)
in the March quarter to A$979 per ounce (US$1,037 per ounce) in the June quarter
due to the increased production. The NCE margin increased from 17 per cent to 31
per cent.
Quarter ended 30 June 2011 compared with quarter ended 30 June 2010
Group attributable equivalent gold production decreased by 3 per cent from
898,000 ounces for the quarter ended June 2010 to 872,000 ounces for the quarter
ended June 2011.
At the South African operations gold production decreased from 488,000 ounces to
447,000 ounces. KDC`s gold production decreased from 326,000 ounces to 273,000
ounces due to a decrease in volumes mined. Beatrix`s gold production increased
from 92,000 ounces to 98,000 ounces mainly due to higher volumes mined and
processed. South Deep`s gold production increased from 70,000 ounces to 76,000
ounces in line with the build-up plan.
At the West African operations, total managed gold production decreased from
257,000 ounces for the quarter ended June 2010 to 237,000 ounces for the quarter
ended June 2011. At Tarkwa, gold production decreased by 10 per cent from
200,000 ounces to 181,000 ounces due to a decrease in CIL throughput head
grades. At Damang, gold production decreased marginally from 57,000 ounces to
56,000 ounces.
In South America, gold equivalent production at Cerro Corona increased from
97,000 ounces in the June 2010 quarter to 101,000 ounces in the June 2011
quarter, mainly due to an increase in ore mined and processed as well as higher
copper prices relative to gold prices in the June 2011 quarter.
At the Australasia operations gold production increased by 7 per cent from
149,000 ounces in the June 2010 quarter to 159,000 ounces in the June 2011
quarter. St Ives decreased from 118,000 ounces to 109,000 ounces. This was
mainly due to a decrease in tonnes mined from both surface and underground,
exacerbated by lower grades. Production at Agnew increased from 32,000 ounces
to 50,000 ounces due to increased stope availability at Kim following the
rehabilitation of poor ground conditions as well as additional ounces from
Songvang.
Revenue increased by 9 per cent from R8,803 million (US$1,169 million) to R9,581
million (US$1,411 million). The average gold price increased by 13 per cent
from R287,454 per kilogram (US$1,191 per ounce) in the quarter ended June 2010
to R326,206 per kilogram (US$1,496 per ounce) in the June 2011 quarter. The
Rand strengthened from US$1 = R7.51 to US$1 = R6.78 or 10 per cent, while the
Rand/Australian Dollar weakened by 8 per cent from A$1 = R6.66 to A$1 = R7.18.
The Australian Dollar strengthened 19 per cent from 89 cents to 106 cents to the
US Dollar.
Net operating costs increased by only 1 per cent from R5,065 million (US$673
million) to R5,124 million (US$755 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 increased
from R166,215 per kilogram (US$688 per ounce) to R177,934 per kilogram (US$816
per ounce) due to decreased gold production and increased operating costs.
At the South African operations operating costs increased by 6 per cent from
R2,905 million (US$386 million) for the June 2010 quarter to R3,074 million
(US$453 million) for the June 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 increased from R187,770 per kilogram to R220,261 per
kilogram as a result of the above and the decrease in production.
At the West African operations, net operating costs decreased from US$151
million in the June 2010 quarter to US$122 million in the June 2011 quarter.
This was due to a higher gold-in-process credit, a decrease in production and
operating cost as a result of the conversion to owner maintenance. These
decreases were partly offset by annual wage increases, fuel increases and power
increases.
At Cerro Corona in South America, net operating costs increased from US$32
million in the June 2010 quarter to US$38 million in the June 2011 quarter, in
line with the increase in production and the increase in workers` statutory
participation.
At the Australasia operations, net operating costs increased from A$117 million
in the June 2010 quarter to A$135 million in the June 2011 quarter. At St Ives,
net operating costs increased from A$89 million to A$103 million mainly due to
increased waste normalisation charges and increased contractor mining costs. At
Agnew, net operating costs increased from A$27 million to A$32 million due to
the fuel price and salary increases together with the increase in production.
Operating profit increased from R3,738 million (US$496 million) to R4,457
million (US$656 million).
Non-recurring costs of R101 million (US$15 million) for the June 2011 quarter
compare with non-recurring costs of R144 million (US$19 million) for the June
2010 quarter. The non-recurring items for the June 2011 quarter include
voluntary separation packages and business process re-engineering costs at all
the operations. The non-recurring items for the June 2010 quarter were mainly as
a result of an impairment on our investment in Rusoro of R197 million (US$26
million), partly offset by profit on the disposal of Eldorado shares of R49
million (US$6 million).
Government royalties increased from R221 million (US$29 million) in the June
2010 quarter to R236 million (US$35 million) in the June 2011 quarter.
Taxation increased from R644 million (US$86 million) in the June 2010 quarter to
R866 million (US$128 million) in the June 2011 quarter in line with the higher
taxable income.
Net earnings attributable to owners of the parent amounted to R1,267 million
(US$186 million), compared with earnings of R900 million (US$120 million) for
the quarter ended June 2010.
Earnings excluding non-recurring items, gains and losses on foreign exchange,
financial instruments and gains or losses of associates after taxation, amounted
to R1,326 million (US$195 million) for the quarter ended June 2011, compared
with R945 million (US$125 million) for the quarter ended June 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 have
an option to earn 60 per cent) is progressing well with eight underground
diamond drill rigs operating and nearly 22,000 metres completed in 17 core
holes. In addition, surface drilling also commenced during the quarter. Initial
results of the proof-of-concept drilling confirmed the preliminary model based
on historic drilling and identified the presence of significant mineralisation
outside the model, both laterally and at depth. Drilling is in progress to
further scope the system as well as complete a sufficient number of infill holes
to support the first resource model to be delivered in March 2012.
In addition to the resource definition drilling, a comprehensive geotechnical
programme is underway as well as studies on hydrogeology, mining methods and
potential sites for tailings disposal and infrastructure. The community
relations team has ramped up its activities in the district and initiated
sustainable development programmes in partnership with the local communities.
Exploration expenditure of R26 million (US$4 million) and feasibility and
evaluation costs of R17 million (US$3 million) in the June quarter compare with
exploration expenditure of R17 million (US$2 million) and feasibility and
evaluation costs of R27 million (US$4 million) in the March quarter.
Chucapaca
Progress is being made towards completion of the feasibility study at the
Chucapaca project in Peru (Gold Fields 51 per cent). Twelve drill rigs are on
site working on infill and geotechnical drilling within the resource area.
Results continue to be positive and an updated interim resource estimate is
expected to be released in the last quarter of the year. The final model for
the feasibility study is planned for mid-2012.
Sterilisation drilling and additional holes for metallurgical samples have
commenced. A battery of metallurgical variability tests has been completed and
an optimisation study is in progress. The results of this work will feed into
the plant throughput and process design for the environmental impact assessment
and the feasibility study. Baseline work for the environmental impact
assessment is expected to be completed in the March 2012 quarter. As part of
our formal agreements with the communities, a significant effort has been made
to hire and train local employees as well as establish sustainable development
programmes within communities impacted by the project.
Capitalised exploration expenditure for the June quarter amounted to US$18
million compared with US$12 million in the March quarter.
Arctic Platinum project (APP)
In April 2011 a decision was reached to conduct a pre-feasibility consolidation
study (PFS) for the APP project in Finland (Gold Fields 100 per cent). The
primary objective of the study is to review the previous feasibility study
completed in 2005, update the mineral resource and mining profiles, incorporate
the changed metallurgical and residue disposal requirements and to develop an
updated capital and operating cost model for the project. The PFS is scheduled
for completion by the end of the year.
The pilot plant metallurgical test work which forms an integral part of the PFS
is on schedule. The pilot plant flotation runs were completed in Finland on two
50 tonne samples from the Konttijarvi and Ahmavaara deposits and both
concentrate samples have been transported to Canada for pilot plant
hydrometallurgical recovery of gold, platinum, palladium, copper and nickel.
Overall metal recoveries in the flotation concentrates appear to be satisfactory
in relation to the prior bench-scale test work. The pilot-scale
hydrometallurgical campaign commenced in July 2011 and initial results are
expected by September 2011.
A new mining licence application was filed in June for an area measuring 2,434
hectares which is contiguous with the Suhanko project. The new licence area,
referred to as Suhanko II, covers the Vaaralampi and Tuumasuo PGE-Cu-Ni
deposits. The process of completing the Environmental Impact Assessment for
Suhanko II has been initiated.
Yanfolila
At the Yanfolila project in southern Mali (Gold Fields 85 per cent), resource
delineation drilling continued with four rigs on the Komana East, Komana West
and Kabaya South deposits, in parallel with other elements of a scoping study
which is on schedule for completion during the September 2011 quarter. Target
definition work and initial drilling also continued on several other promising
targets which are located within a 20 kilometre radius of Komana East.
EXPLORATION PROJECTS
In addition to the three resource development projects mentioned above, the
greenfields exploration portfolio also consists of two advanced drilling
projects, six initial drilling projects and nine target definition projects in
Peru, Chile, Ghana, Canada, Kyrgyzstan, and Australia. Near mine exploration
continued at St Ives, Agnew, Damang and Cerro Corona during the quarter.
Advanced drilling projects
In British Columbia, Canada, Gold Fields can earn up to a 70 per cent interest
in the Woodjam project with joint venture partners Fjordland Exploration Inc.
(TSX.V:"FEX") and Cariboo Rose Resources (TSX.V:"CRB"). Resource delineation
drilling continued during the quarter with two drill rigs on the Southeast Zone
porphyry copper-gold-molybdenum target. The drilling programme is on schedule
for completion during the September 2011 quarter and delivery of a SAMREC 2007
compliant mineral resource declaration on the Southeast Zone and a conceptual
study by September 2011. Additional prospective third party concessions within
the project area were optioned during the quarter and will be incorporated into
the initial drilling plans to be carried out during the remainder of the year.
At the Talas project in Kyrgyzstan (Gold Fields 60 per cent), a new community
engagement strategy has been implemented. Environmental monitoring and
reclamation of disturbed areas is ongoing. There has been a notable improvement
in community relations and the Central Government continues to be very
supportive of the project. The exploration programme is expected to re-start in
2012.
Initial drilling projects
The East Lachlan joint ventures in New South Wales, Australia, comprise of two
project areas (Wellington North and Cowal East) where Gold Fields has an 80 per
cent interest and another two projects where Gold Fields is still earning into
an 80 per cent interest with Clancy Exploration Ltd (ASX:"CLY"). Reverse
circulation drilling completed at the MacGregors greenstone hosted orogenic gold
prospect (Parkes East JV Project) intersected wide zones of near surface, low
grade gold mineralisation confirming a large hydrothermal gold system from
surface which is open along strike and at depth. Initial reverse circulation
drilling was also undertaken at the Boxdale Prospect, Moorefield Project.
Initial indications confirm the presence of a wide, near surface mineralised
structure with encouraging gold and silver contents together with anomalous
arsenic and antimony values. Full field air core drilling for porphyry copper-
gold mineralisation at the Myall joint venture has been temporarily suspended
due to cereal crop sowing and continuing wet weather.
On the Alectown tenements (Gold Fields 100 per cent) located within the East
Lachlan project area, reverse circulation drilling on the Buryan targets
confirmed the presence of low grade porphyry-style gold and copper
mineralisation in a strongly altered diorite intrusion. Drilling also
intersected a new carbonate base metal-gold epithermal target on the edge of the
porphyry system identified above and returned low grade gold and copper
mineralisation. The epithermal and porphyry mineralisation at Buryan remains
open along strike and at depth.
Reverse circulation scout drilling was carried out at the Salares Norte property
in Chile (Gold Fields has an option for 100 per cent) to test selected
epithermal targets. Initial results are encouraging and a follow-up drilling
programme is planned for the next field season. An option agreement was signed
for the adjacent third party-owned Rio Baker concessions (Gold Fields option for
100 per cent) which will be incorporated into the exploration plan for the
Salares Norte project area. At the nearby Pircas epithermal gold project in
Chile (Gold Fields has an option for 100 per cent), the reverse circulation
drilling programme was cut short by winter weather after only two holes were
completed. This drilling programme is planned to continue in September 2011.
A 2,000 metre diamond drilling programme commenced in late June 2011 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").
The drill holes are testing the Mex porphyry copper-gold target which was not
drilled by Gold Fields in the last exploration campaign completed in 2009.
At the Asheba project in Ghana (Gold Fields 90 per cent), interpretation of the
initial drill results combined with old mine maps have delineated additional
exploration targets along strike and the project warrants further work.
Near Mine exploration
St Ives
The main focus this quarter has been on resource development drilling in the
Neptune and Victory prospective open pit expansion areas. In excess of 25,000
metres of reverse circulation and diamond drilling have been completed in the
Neptune area and results continue to be positive. Interim model updates are in
progress and will be combined in order to complete the global optimisation of
the Greater Neptune-Greater Revenge project area.
Framework diamond drilling has been completed around the Victory complex.
Prospective new mineralisation has been identified to the west of the current
Leviathan pit which will require follow up. Additional mineralisation was also
identified in the vicinity of the Britannia Footwall, Sirius and Paddy`s
resources.
Target generation drilling was carried out at several other targets within the
Junction - South Argo Trend and the South Foster area. Reserve conversion and
extensional drilling is in progress at Athena, Hamlet and Cave rocks.
Agnew
Recent drilling has identified three high grade ore-shoots at depth on the
Waroonga Main Lode North: the Fitzroy, the Bengal and the Hastings shoots. The
Fitzroy and Bengal shoots plunge steeply to the northwest and may intersect with
the Porphyry Link Zone which was previously identified between the Main North
and Kim Lodes. Results of the NAVIRegistered drilling have been positive and
resource delineation drilling will take place in these areas during the second
half of 2011.
Encouraging assay results from two new holes into the Porphyry Link Zone suggest
that the extensions to the shallow plunging, moderate grade mineralisation
situated on the southern edge of the Kim South Lode extends to the south and may
potentially join up with the high grade mineralisation in the Fitzroy and Bengal
Shoots. Although the immediate focus at Waroonga is on confirming grade and
continuity of the high grade shoots, this mineralised trend between Kim Lode and
the Fitzroy Shoot requires follow-up which will be scheduled for the 2012 work
programme.
Recent reconnaissance air core drilling was completed to the north of the
Cinderella deposit. Two zones of shallow mineralisation were delineated,
approximately 200 metres and 1 kilometre north of the potential Cinderella pit
position respectively. A follow-up drilling programme is required.
Damang
Based on positive results of the recently completed Phase 1 proof of concept
drilling programme at Greater Damang, a pre-feasibility study (PFS) commenced in
July 2011. This includes the Phase 2 resource definition drilling programme of
43,000 metres, already underway. Drilling will be completed from the active pit
floor in most cases and is designed to test the limits of potential
mineralisation at depth. Assay results have been broadly consistent with
expectation and continue to define both continuity of the system to depth and
presence of regular higher grade pods which drive the economics of this deposit.
Cerro Corona
Initial assay results of the recently completed Phase 2 infill and extensional
drilling programme appear to generally confirm the existing resource model, with
local areas of either higher or lower grade than modelled. The data will be
used to develop a revised litho-structural-alteration model and resource update
to better define the Life of Mine reserves.
Exploration framework drilling commenced in June on the adjacent Sylvita
project. Of the five holes completed, three have successfully intersected
altered porphyry and two intersected limestone with narrower dykes intruding the
sequence. Skarn and sulphide manto mineralisation has been observed in the
limestone close to dykes and the porphyry, with some indications of localised
strong copper mineralisation.
The Oxide Stockpile Drilling project was completed in June 2011. Assays
received confirmed the estimated grade of the stockpile, as well as distribution
and very low levels of soluble copper within the stockpile stack. Full analysis
and modelling of the stockpiles was completed in July 2011.
Business development
An option agreement was signed with a private owner in May 2011 which allows
Gold Fields the right to acquire 100 per cent of the Mandiana project in Guinea
for a schedule of modest option payments over three years. Field work will
focus on the delineation and testing of initial drilling targets within the
first year.
An option agreement was signed in June 2011 which allows Gold Fields the right
to acquire the third party Robson claim within the Eldorado project area in
British Columbia, Canada. Terms include modest work commitments over four years
and a royalty which can be purchased.
Corporate
New housing complex
On 26 May 2011 a new employee housing project was opened near KDC as part of the
R560 million, five year staff housing programme. The new Tembelihle Park complex
represents an investment of R25 million and will offer housing accommodation to
a hundred KDC employees and their families.
The complex is an integral part of the Group`s continuing programme to renovate
housing, construct new family homes and upgrade and de-densify high-density
accommodation at its South African mines.
Trust donates to TutuDesk campaign
South Deep Education Trust presented R2 million to Archbishop Emeritus Desmond
Tutu`s 2015 TutuDesk campaign on 15 June 2011. This campaign aims to reduce
classroom desk shortages affecting over 90 million African school children by
2015.
The plastic lapdesks are manufactured by the Lapdesk Company for disadvantaged
school children who have no access to desks or classrooms. More than a million
children have received lapdesks at schools in South Africa since the company`s
formation in 2002.
Ghana acquisition approved
On 20 June 2011 further to the announcement on 15 April 2011, shareholders
overwhelmingly approved the US$667 million acquisition of IamGold Corporation`s
indirect 18.9 per cent stake in the Tarkwa and Damang gold mines in Ghana.
New loan facility
Gold Fields announced on 6 July 2011 that it has secured a 5-year US$1 billion
revolving credit facility. The loan will replace a US$450 million three-year
facility with a September 2013 maturity.
The new facility, agreed by Gold Fields with a syndicate of fourteen banks, was
oversubscribed by 1.33 times.
The loan carries an interest rate of between 120 basis points and 160 basis
points over the London Interbank Offered Rate (Libor) depending on the level of
utilisation.
Changes to the executive
Peter Turner, the current Executive Vice President (EVP), West Africa region,
has taken up the position of EVP, South African region, with effect from Monday
8 August 2011. Peter`s appointment is based on his wide-ranging experience in
operating both open-cast and deep-level mines, having previously worked as Vice
President, at both Driefontein and Kloof, and in his previous career at the
AngloGold Ashanti Group.
Tim Rowland, who has been acting as Head of the South African region for the
last eight months, will take up the position of EVP, Group Technical Services, a
new position that will house the full technical function for the Group. Prior to
running the South African region on an acting basis, Tim headed the Mineral
Resource and Mineral Reserve portfolio for the Group. Tim`s extensive
experience, both at Gold Fields and at AngloGold Ashanti over the past 25 years,
makes him the ideal person to lead the Technical Services Group.
Following the retirement of Ben Zikmundovsky, EVP International Capital Projects
and International Technical Services, at the end of July, the existing
Exploration and Business Development portfolio was consolidated together with
the International Capital portfolio. Tommy McKeith will head the consolidated
Group Growth function as EVP Growth and International Projects.
Cash dividend
In line with the company`s policy to pay out 50 per cent of its earnings
attributable to owners of the parent adjusted for impairments and after taking
account of investment opportunities, an interim dividend has been declared for
the 6 months period ending 30 June 2011 payable to shareholders as follows:
Interim dividend number 75: 100 SA cents per share
Last date to trade cum- dividend: Friday, 26 August 2011
Sterling and US dollar conversion date: Monday, 29 August 2011
Trading commences ex dividend: Monday, 29 August 2011
Record date: Friday, 2 September 2011
Payment date: Monday, 5 September 2011
Share certificates may not be dematerialised or rematerialised between Monday,
29 August 2011 and Friday, 2 September 2011, both dates inclusive.
Outlook
The production guidance provided on 18 February 2011 for the year ending
December 2011 remains unchanged. Equivalent gold production is estimated at
between 3.5 million and 3.7 million attributable ounces. Total cash cost is
estimated at US$790 per ounce (R178,000 per kilogram) compared with US$760 per
ounce (R175,000 per kilogram) provided in February. This is mainly due to an
increase in fuel costs at the West Africa region, higher power costs at the
South Africa and West Africa regions, higher wage costs than originally
anticipated, an increase in the workers` participation of profits at Cerro
Corona and increased royalties at all our operations due to the higher gold
price. The NCE is estimated at US$1,190 per ounce (R268,000 per kilogram)
compared with US$1,050 per ounce (R240,000 per kilogram) due to the increase in
costs above together with significant investment in our growth projects, such as
Chucapaca, APP and the feasibility study at Greater Damang, given the rate at
which these projects are progressing. These growth projects, previously
expensed, have reached a point where they are now being capitalised. These
estimates are based on exchange rates of R/US$7.00 and US$/A$1.03 for the year
as a whole which assumes R/US$7.14 for the remaining six months of the year. The
above is subject to an improved safety performance limiting the impact of safety
related stoppages and the forward looking statement on pages 1 and 27.
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
11 August 2011
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
June March June
SOUTH AFRICAN RAND
2011 2011 2010
Revenue 9,581.0 8,969.4 8,802.7
Operating costs, net (5,124.2) (4,878.4) (5,064.7)
- Operating costs (5,250.7) (4,959.0) (5,102.5)
- Gold inventory change 126.5 80.6 37.8
Operating profit 4,456.8 4,091.0 3,738.0
Amortisation and depreciation (1,277.2) (1,240.0) (1,368.2)
Net operating profit 3,179.6 2,851.0 2,369.8
Net interest paid (31.5) (40.9) (33.4)
Share of gain/(loss) of associates after
taxation 0.8 (3.5) 86.2
(Loss)/gain on foreign exchange (19.0) 3.0 6.0
Gain/(loss) on financial instruments 24.6 6.4 19.1
Share-based payments (122.5) (122.0) (46.1)
Other (84.8) (76.1) (119.9)
Exploration (213.5) (138.5) (185.5)
Feasibility and evaluation costs (17.2) (27.3) -
Profit before royalties, taxation and
non-recurring items 2,716.5 2,452.1 2,096.2
Non-recurring items (100.6) (82.6) (144.1)
Profit before royalties and taxation 2,615.9 2,369.5 1,952.1
Royalties (236.4) (164.6) (220.8)
Profit before taxation 2,379.5 2,204.9 1,731.3
Mining and income taxation (866.3) (780.0) (643.7)
- Normal taxation (520.7) (599.8) (339.6)
- Deferred taxation (345.6) (180.2) (304.1)
Net profit 1,513.2 1,424.9 1,087.6
Attributable to:
- Owners of the parent 1,266.8 1,100.4 899.9
- Non-controlling interest 246.4 324.5 187.7
Non-recurring items:
Profit on sale of investments - - 63.8
(Loss)/profit on sale of assets (2.4) (1.3) 0.5
Restructuring costs (63.0) (84.6) (11.8)
Gain on financial instruments - - -
Impairment of investments (1.2) - (196.6)
Other (34.0) 3.3 -
Total non-recurring items (100.6) (82.6) (144.1)
Taxation 30.1 25.9 (7.0)
Net non-recurring items after taxation (70.5) (56.7) (151.1)
Net earnings 1,266.8 1,100.4 899.9
Net earnings per share (cents) 175 153 128
Diluted earnings per share (cents) 174 151 125
Headline earnings 1,270.1 1,101.4 1,039.1
Headline earnings per share (cents) 176 153 147
Diluted headline earnings per share
(cents) 174 151 145
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 1,326.4 1,151.7 945.4
Net earnings per share excluding gains
and losses on foreign exchange,
financial instruments, non-recurring
items and share of gain/(loss) of
associates after royalties and taxation
(cents) 184 160 134
Gold sold - managed kg 29,371 28,775 30,623
Gold price received R/kg 326,206 311,708 287,454
Total cash cost R/kg 177,934 168,455 166,215
Six months to
June June
SOUTH AFRICAN RAND
2011 2010
Revenue 18,550.4 16,082.6
Operating costs, net (10,002.6) (9,774.5)
- Operating costs (10,209.7) (9,860.8)
- Gold inventory change 207.1 86.3
Operating profit 8,547.8 6,308.1
Amortisation and depreciation (2,517.2) (2,507.5)
Net operating profit 6,030.6 3,800.6
Net interest paid (72.4) (78.1)
Share of gain/(loss) of associates after taxation (2.7) 90.3
(Loss)/gain on foreign exchange (16.0) (9.6)
Gain/(loss) on financial instruments 31.0 (5.9)
Share-based payments (244.5) (167.0)
Other (160.9) (216.3)
Exploration (352.0) (312.4)
Feasibility and evaluation costs (44.5) -
Profit before royalties, taxation and non-recurring
items 5,168.6 3,101.6
Non-recurring items (183.2) (121.8)
Profit before royalties and taxation 4,985.4 2,979.8
Royalties (401.0) (338.0)
Profit before taxation 4,584.4 2,641.8
Mining and income taxation (1,646.3) (1,073.7)
- Normal taxation (1,120.5) (495.0)
- Deferred taxation (525.8) (578.7)
Net profit 2,938.1 1,568.1
Attributable to:
- Owners of the parent 2,367.2 1,215.6
- Non-controlling interest 570.9 352.5
Non-recurring items:
Profit on sale of investments - 88.2
(Loss)/profit on sale of assets (3.7) 1.4
Restructuring costs (147.6) (13.5)
Gain on financial instruments - -
Impairment of investments (1.2) (197.9)
Other (30.7) -
Total non-recurring items (183.2) (121.8)
Taxation 56.0 (6.7)
Net non-recurring items after taxation (127.2) (128.5)
Net earnings 2,367.2 1,215.6
Net earnings per share (cents) 328 172
Diluted earnings per share (cents) 325 169
Headline earnings 2,371.5 1,331.1
Headline earnings per share (cents) 329 189
Diluted headline earnings per share (cents) 325 186
Net earnings excluding gains and losses on foreign
exchange, financial
instruments, non-recurring items and share of
gain/(loss) of associates after
royalties and taxation 2,478.1 1,265.5
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) 344 179
Gold sold - managed kg 58,146 58,028
Gold price received R/kg 319,031 277,152
Total cash cost R/kg 173,243 167,785
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
June March June
UNITED STATES DOLLARS
2011 2011 2010
Revenue 1,411.3 1,285.0 1,169.2
Operating costs, net (754.9) (699.0) (673.1)
- Operating costs (773.5) (710.5) (678.1)
- Gold inventory change 18.6 11.5 5.0
Operating profit 656.4 586.0 496.1
Amortisation and depreciation (188.2) (177.7) (181.7)
Net operating profit 468.2 408.3 314.4
Net interest paid (4.6) (5.9) (4.4)
Share of gain/(loss) of associates after
taxation 0.1 (0.5) 11.4
(Loss)/gain on foreign exchange (2.7) 0.4 0.8
Gain/(loss) on financial instruments 3.6 0.9 2.4
Share-based payments (18.0) (17.5) (6.3)
Other (12.8) (10.6) (15.9)
Exploration (31.3) (19.9) (24.7)
Feasibility and evaluation costs (2.6) (3.9) -
Profit before royalties, taxation and
non-recurring items 399.9 351.3 277.7
Non-recurring items (14.8) (11.8) (18.6)
Profit before royalties and taxation 385.1 339.5 259.1
Royalties (34.7) (23.6) (29.2)
Profit before taxation 350.4 315.9 229.9
Mining and income taxation (127.6) (111.7) (85.5)
- Normal taxation (77.0) (85.9) (45.1)
- Deferred taxation (50.6) (25.8) (40.4)
Net profit 222.8 204.2 144.4
Attributable to:
- Owners of the parents 186.3 157.7 119.5
- Non-controlling interest 36.5 46.5 24.9
Non-recurring items:
Profit on sale of investments - - 8.8
(Loss)/profit on sale of assets (0.3) (0.2) -
Restructuring costs (9.4) (12.1) (1.6)
Gain on financial instruments - - 0.1
Impairment of investments (0.2) - (25.9)
Other (4.9) 0.5 -
Total non-recurring items (14.8) (11.8) (18.6)
Taxation 4.4 3.7 (1.0)
Net non-recurring items after taxation (10.4) (8.1) (19.6)
Net earnings 186.3 157.7 119.5
Net earnings per share (cents) 26 22 17
Diluted earnings per share (cents) 25 22 17
Headline earnings 186.7 157.9 137.8
Headline earnings per share (cents) 26 22 20
Diluted headline earnings per share (cents) 25 22 19
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 195.2 165.0 125.4
Net earnings per share excluding gains and
losses on foreign exchange,
financial instruments, non-recurring items and
share of gain/(loss) of
associates after royalties and taxation (cents) 27 23 18
South African rand/United States dollar
conversion rate 6.78 6.98 7.51
South African rand/Australian dollar
conversion rate 7.18 7.00 6.66
Gold sold - managed oz (000) 944 925 985
Gold price received US$/oz 1,496 1,389 1,191
Total cash cost US$/oz 816 751 688
Six months to
June June
UNITED STATES DOLLARS
2011 2010
Revenue 2,696.3 2,140.4
Operating costs, net (1,453.9) (1,300.7)
- Operating costs (1,484.0) (1,312.2)
- Gold inventory change 30.1 11.5
Operating profit 1,242.4 839.7
Amortisation and depreciation (365.9) (333.7)
Net operating profit 876.5 506.0
Net interest paid (10.5) (10.3)
Share of gain/(loss) of associates after taxation (0.4) 11.9
(Loss)/gain on foreign exchange (2.3) (1.3)
Gain/(loss) on financial instruments 4.5 (1.0)
Share-based payments (35.5) (22.4)
Other (23.4) (28.6)
Exploration (51.2) (41.6)
Feasibility and evaluation costs (6.5) -
Profit before royalties, taxation and non-recurring
items 751.2 412.7
Non-recurring items (26.6) (14.7)
Profit before royalties and taxation 724.6 398.0
Royalties (58.3) (44.8)
Profit before taxation 666.3 353.2
Mining and income taxation (239.3) (143.2)
- Normal taxation (162.9)
- Deferred taxation (76.4) (77.0)
Net profit 427.0 210.0
Attributable to:
- Owners of the parents 344.0 163.2
- Non-controlling interest 83.0 46.8
Non-recurring items:
Profit on sale of investments - 12.6
(Loss)/profit on sale of assets (0.5) 0.2
Restructuring costs (21.5) (1.8)
Gain on financial instruments - 0.4
Impairment of investments (0.2) (26.1)
Other (4.4) -
Total non-recurring items (26.6) (14.7)
Taxation 8.1 (1.1)
Net non-recurring items after taxation (18.5) (15.8)
Net earnings 344.0 163.2
Net earnings per share (cents) 48 23
Diluted earnings per share (cents) 47 23
Headline earnings 344.6 177.7
Headline earnings per share (cents) 48 25
Diluted headline earnings per share (cents) 47 25
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 360.2 168.9
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) 50 23
South African rand/United States dollar conversion rate 6.88 7.51
South African rand/Australian dollar conversion rate 7.09 6.71
Gold sold - managed oz (000) 1,869 1,865
Gold price received US$/oz 1,442 1,148
Total cash cost US$/oz 783 696
Statement of comprehensive income
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
June March June
SOUTH AFRICAN RAND
2011 2011 2010
1,513.2 1,424.9 1,087.6
Net profit
Other comprehensive income/(expenses), net of
tax 89.2 397.1 170.4
Marked to market valuation of listed
investments (23.7) 28.0 19.4
Currency translation adjustments and other 114.8 367.3 155.8
Share of equity investees other comprehensive
loss - - (2.4)
Deferred taxation on marked to market
valuation of listed investments (1.9) 1.8 (2.4)
Total comprehensive income 1,602.4 1,822.0 1,258.0
Attributable to:
- Owners of the parent 1,355.5 1,497.2 1,066.1
- Non-controlling interest 246.9 324.8 191.9
1,602.4 1,822.0 1,258.0
Six months to
June June
SOUTH AFRICAN RAND
2011 2010
2,938.1 1,568.1
Net profit
Other comprehensive income/(expenses), net of tax 486.3 (385.7)
Marked to market valuation of listed investments 4.3 (114.6)
Currency translation adjustments and other 482.1 (274.9)
Share of equity investees other comprehensive loss - (2.5)
Deferred taxation on marked to market valuation of listed
investments (0.1) 6.3
Total comprehensive income 3,424.4 1,182.4
Attributable to:
- Owners of the parent 2,852.7 831.2
- Non-controlling interest 571.7 351.2
3,424.4 1,182.4
Statement of comprehensive income
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
June March June
UNITED STATES DOLLARS
2011 2011 2010
Net profit 222.8 204.2 144.4
Other comprehensive income/(expenses),
net of tax 53.8 (110.4) (154.0)
Marked to market valuation of listed investments (3.4) 4.0 2.5
Currency translation adjustments and other 57.5 (114.7) (155.9)
Share of equity investees other comprehensive
loss - - (0.3)
Deferred taxation on marked to market valuation
of listed investments (0.3) 0.3 (0.3)
Total comprehensive income 276.6 93.8 (9.6)
Attributable to:
- Owners of the parent 233.3 58.2 (23.5)
- Non-controlling interest 43.3 35.6 13.9
276.6 93.8 (9.6)
Six months to
June June
UNITED STATES DOLLARS
2011 2010
Net profit 427.0 210.0
Other comprehensive income/(expenses), net of tax (56.6) 6.6
Marked to market valuation of listed investments 0.6 (15.4)
Currency translation adjustments and other (57.2) 21.4
Share of equity investees other comprehensive loss - (0.3)
Deferred taxation on marked to market valuation of listed
investments - 0.9
Total comprehensive income 370.4 216.6
Attributable to:
- Owners of the parent 291.5 166.4
- Non-controlling interest 78.9 50.2
370.4 216.6
Statement of financial position
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
June December
2011 2010
Property, plant and equipment 55,843.0 53,249.8
Goodwill 4,458.9 4,458.9
Non-current assets 1,168.8 1,137.9
Investments 1,013.2 1,078.5
Deferred taxation 705.0 753.1
Current assets 10,668.0 11,136.1
- Other current assets 6,323.0 5,672.3
- Cash and deposits 4,345.0 5,463.8
Total assets 73,856.9 71,814.3
Shareholders equity 42,666.6 46,622.5
Deferred taxation 8,404.1 7,814.5
Long-term loans 10,831.9 7,671.9
Environmental rehabilitation provisions 2,393.0 2,271.2
Post-retirement health care provisions 18.0 18.0
Other long term provisions 110.0 133.2
Current liabilities 9,433.3 7,283.0
- Other current liabilities 5,712.7 5,516.8
- Current portion of long-term loans 3,720.6 1,766.2
Total equity and liabilities 73,856.9 71,814.3
South African rand/US dollar conversion rate
South African rand/Australian dollar conversion rate
Net debt 10,207.5 3,974.3
UNITED STATES DOLLARS
June December
2011 2010
Property, plant and equipment 8,104.9 7,888.9
Goodwill 647.2 660.6
Non-current assets 169.6 168.6
Investments 147.1 159.8
Deferred taxation 102.3 111.6
Current assets 1,548.3 1,649.8
- Other current assets 917.7 840.3
- Cash and deposits 630.6 809.5
Total assets 10,719.4 10,639.3
Shareholders equity 6,192.5 6,907.1
Deferred taxation 1,219.8 1,157.7
Long-term loans 1,572.1 1,136.6
Environmental rehabilitation provisions 347.3 336.5
Post-retirement health care provisions 2.6 2.7
Other long term provisions 16.0 19.7
Current liabilities 1,369.1 1,079.0
- Other current liabilities 829.1 817.3
- Current portion of long-term loans 540.0 261.7
Total equity and liabilities 10,719.4 10,639.3
South African rand/US dollar conversion rate 6.89 6.75
South African rand/Australian dollar conversion rate 7.23 6.77
Net debt 1,481.5 588.8
Condensed statement of changes in equity
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
Share capital Other Retained
and premium reserves earnings
Balance as at 31 December 2010 31,560.6 (38.3) 12,019.8
Total comprehensive income - 485.5 2,367.2
Profit for the period - - 2,367.2
Other comprehensive income - 485.5 -
Dividends paid - - (505.8)
Share-based payments - 244.5 -
Loans received from non-controlling
interest - - -
Purchase of non-controlling interest - - (4,469.8)
Treasury shares (81.4) - -
Exercise of employee share options 19.7 - -
Balance as at 30 June 2011 31,498.9 691.7 9,411.4
Non-controlling Total
interest equity
Balance as at 31 December 2010 3,080.4 46,622.5
Total comprehensive income 571.7 3,424.4
Profit for the period 570.9 2,938.1
Other comprehensive income 0.8 486.3
Dividends paid (15.1) (520.9)
Share-based payments - 244.5
Loans received from non-controlling interest 88.5 88.5
Purchase of non-controlling interest (2,660.9) (7,130.7)
Treasury shares - (81.4)
Exercise of employee share options - 19.7
Balance as at 30 June 2011 1,064.6 42,666.6
UNITED STATES DOLLARS
Share capital Other Retained
and premium reserves earnings
Balance as at 31 December 2010 4,602.7 207.4 1,640.6
Total comprehensive (expenses)/income - (52.5) 344.0
Profit for the period - - 344.0
Other comprehensive expenses - (52.5) -
Dividends paid - - (73.2)
Share-based payments - 35.5 -
Loans received from non-controlling
interest - - -
Purchase of non-controlling interest - - (657.6)
Treasury shares (11.8) - -
Exercise of employee share options 2.9 - -
Balance as at 30 June 2011 4,593.8 190.4 1,253.8
Non-controlling Total
interest equity
Balance as at 31 December 2010 456.4 6,907.1
Total comprehensive (expenses)/income 78.9 370.4
Profit for the period 83.0 427.0
Other comprehensive expenses (4.1) (56.6)
Dividends paid (2.2) (75.4)
Share-based payments - 35.5
Loans received from non-controlling interest 12.9 12.9
Purchase of non-controlling interest (391.5) (1,049.1)
Treasury shares - (11.8)
Exercise of employee share options - 2.9
Balance as at 30 June 2011 154.5 6,192.5
SOUTH AFRICAN RAND
Share capital Other Retained
and premium reserves earnings
Balance as at 31 December 2009 31,503.5 (1,252.6) 11,727.9
Total comprehensive (expenses)/income - (384.4) 1,215.6
Profit for the period - - 1,215.6
Other comprehensive expenses - (384.4) -
Dividends paid - - (353.0)
Share-based payments - 167.0 -
Loans repaid to non-controlling
interest - - -
Exercise of employee share options 18.9 - -
Balance as at 30 June 2010 31,522.4 (1,470.0) 12,590.5
Non-controlling Total
interest equity
Balance as at 31 December 2009 2,746.4 44,725.2
Total comprehensive (expenses)/income 351.2 1,182.4
Profit for the period 352.5 1,568.1
Other comprehensive expenses (1.3) (385.7)
Dividends paid (175.2) (528.2)
Share-based payments - 167.0
Loans repaid to non-controlling interest (116.4) (116.4)
Exercise of employee share options - 18.9
Balance as at 30 June 2010 2,806.0 45,448.9
UNITED STATES DOLLARS
Share capital Other Retained
and premium reserves earnings
Balance as at 31 December 2009 4,594.8 (708.3) 1,600.9
Total comprehensive income - 3.2 163.2
Profit for the period - - 163.2
Other comprehensive income - 3.2 -
Dividends paid - - (45.5)
Share-based payments - 22.4 -
Loans repaid to non-controlling
interest - - -
Exercise of employee share options 2.5 - -
Balance as at 30 June 2010 4,597.3 (682.7) 1,718.6
Non-controlling Total
interest equity
Balance as at 31 December 2009 359.0 5,846.4
Total comprehensive income 50.2 216.6
Profit for the period 46.8 210.0
Other comprehensive income 3.4 6.6
Dividends paid (23.1) (68.6)
Share-based payments - 22.4
Loans repaid to non-controlling interest (15.4) (15.4)
Exercise of employee share options - 2.5
Balance as at 30 June 2010 370.7 6,003.9
Statement of cash flows
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
June March June
SOUTH AFRICAN RAND 2011 2011 2010
2,954.2 2,782.5 3,649.7
Cash flows from operating activities
Profit before royalties, tax and
non-recurring items 2,716.5 2,452.1 2,096.2
Non-recurring items (100.6) (82.6) (144.1)
Amortisation and depreciation 1,277.2 1,240.0 1,368.2
South Deep BEE dividend paid - (21.4) -
Change in working capital 47.8 (290.6) 767.0
Royalties and taxation paid (984.9) (662.0) (545.5)
Other non-cash items (1.8) 147.0 107.9
Dividends paid (7.3) (564.4) (175.2)
Ordinary shareholders - (505.8) -
Non-controlling interest holders (7.3) (58.6) (175.2)
Cash flows from investing activities (8,029.7) (3,422.4) (1,890.2)
Capital expenditure - additions (2,285.0) (2,068.6) (2,156.9)
Capital expenditure - proceeds on
disposal 8.2 8.7 2.4
La Cima non-controlling interest buy-out (1,242.6) (1,368.4) -
Ghana non-controlling interest buy-out (4,519.7) - -
Purchase of investments - (0.7) (3.6)
Proceeds on disposal of investments 12.0 11.5 339.8
Environmental and post-retirement health
care payments (2.6) (4.9) (71.9)
Cash flows from financing activities 2,795.2 2,277.8 (665.9)
Loans received 3,927.3 3,171.8 2,444.1
Loans repaid (1,184.6) (949.7) (3,001.0)
Non-controlling interest holders loans
received 46.6 41.9 -
Non-controlling interest holders loans
repaid - - (116.4)
Shares issued 5.9 13.8 7.4
Net cash (outflow)/inflow (2,287.6) 1,073.5 918.4
Translation adjustment 29.4 65.9 47.2
Cash at beginning of period 6,603.2 5,463.8 2,824.9
Cash at end of period 4,345.0 6,603.2 3,790.5
*Cash flow before financing activities
and dividend payments (5,075.5) (639.9) 1,759.5
Six months to
June June
SOUTH AFRICAN RAND 2011 2010
5,736.7 6,233.2
Cash flows from operating activities
Profit before royalties, tax and non-recurring items 5,168.6 3,101.6
Non-recurring items (183.2) (121.8)
Amortisation and depreciation 2,517.2 2,507.5
South Deep BEE dividend paid (21.4) -
Change in working capital (242.8) 1,472.8
Royalties and taxation paid (1,646.9) (936.2)
Other non-cash items 145.2 209.3
Dividends paid (571.7) (528.2)
Ordinary shareholders (505.8) (353.0)
Non-controlling interest holders (65.9) (175.2)
Cash flows from investing activities (11,452.1) (3,644.4)
Capital expenditure - additions (4,353.6) (4,028.7)
Capital expenditure - proceeds on disposal 16.9 3.2
La Cima non-controlling interest buy-out (2,611.0) -
Ghana non-controlling interest buy-out (4,519.7) -
Purchase of investments (0.7) (50.9)
Proceeds on disposal of investments 23.5 511.8
Environmental and post-retirement health care payments (7.5) (79.8)
Cash flows from financing activities 5,073.0 (88.1)
Loans received 7,099.1 5,106.1
Loans repaid (2,134.3) (5,096.7)
Non-controlling interest holders loans received 88.5 -
Non-controlling interest holders loans repaid - (116.4)
Shares issued 19.7 18.9
Net cash (outflow)/inflow (1,214.1) 1,972.5
Translation adjustment 95.3 (10.2)
Cash at beginning of period 5,463.8 1,828.2
Cash at end of period 4,345.0 3,790.5
*Cash flow before financing activities and dividend
payments (5,715.4) 2,588.8
Quarter
June March June
UNITED STATES DOLLARS 2011 2011 2010
435.5 397.6 482.1
Cash flows from operating activities
Profit before royalties, tax and
non-recurring items 399.9 351.3 277.7
Non-recurring items (14.8) (11.8) (18.6)
Amortisation and depreciation 188.2 177.7 181.7
South Deep BEE dividend paid - (3.1) -
Change in working capital 6.3 (41.6) 100.9
Royalties and taxation paid (144.1) (96.0) (73.6)
Other non-cash items - 21.1 14.0
Dividends paid (1.1) (81.9) (23.1)
Ordinary shareholders - (73.2) -
Non-controlling interest holders (1.1) (8.7) (23.1)
Cash flows from investing activities (1,185.1) (492.1) (239.7)
Capital expenditure - additions (336.4) (296.4) (286.5)
Capital expenditure - proceeds on disposal 1.3 1.2 0.3
La Cima non-controlling interest buy-out (184.4) (197.7) -
Ghana non-controlling interest buy-out (667.0) - -
Purchase of investments - (0.1) (0.4)
Proceeds on disposal of investments 1.8 1.6 56.4
Environmental and post-retirement health
care payments (0.4) (0.7) (9.5)
Cash flows from financing activities 403.9 330.2 (88.0)
Loans received 570.0 458.2 322.9
Loans repaid (173.8) (136.1) (396.5)
Non-controlling interest holders loans
received 6.8 6.1 -
Non-controlling interest holders loans repaid - - (15.4)
Shares issued 0.9 2.0 1.0
Net cash (outflow)/inflow (346.8) 153.8 131.3
Translation adjustment 23.2 (9.1) (14.9)
Cash at beginning of period 954.2 809.5 384.3
Cash at end of period 630.6 954.2 500.7
*Cash flow before financing activities and
dividend payments (749.6) (94.5) 242.4
Six months to
June June
UNITED STATES DOLLARS 2011 2010
833.1 826.9
Cash flows from operating activities
Profit before royalties, tax and non-recurring items 751.2 412.7
Non-recurring items (26.6) (14.7)
Amortisation and depreciation 365.9 333.7
South Deep BEE dividend paid (3.1) -
Change in working capital (35.3) 192.5
Royalties and taxation paid (240.1) (123.9)
Other non-cash items 21.1 26.6
Dividends paid (83.0) (68.6)
Ordinary shareholders (73.2) (45.5)
Non-controlling interest holders (9.8) (23.1)
Cash flows from investing activities (1,677.2) (473.8)
Capital expenditure - additions (632.8) (536.0)
Capital expenditure - proceeds on disposal 2.5 0.4
La Cima non-controlling interest buy-out (382.1) -
Ghana non-controlling interest buy-out (667.0) -
Purchase of investments (0.1) (6.9)
Proceeds on disposal of investments 3.4 79.3
Environmental and post-retirement health care payments (1.1) (10.6)
Cash flows from financing activities 734.1 (10.5)
Loans received 1,028.2 677.8
Loans repaid (309.9) (675.4)
Non-controlling interest holders loans received 12.9 -
Non-controlling interest holders loans repaid - (15.4)
Shares issued 2.9 2.5
Net cash (outflow)/inflow (193.0) 274.0
Translation adjustment 14.1 (12.3)
Cash at beginning of period 809.5 239.0
Cash at end of period 630.6 500.7
*Cash flow before financing activities and dividend
payments (844.1) 353.1
*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
Quarter
June March June
2011 2011 2010
Net earnings 1,266.8 1,100.4 899.9
Profit on sale of investments - - (63.8)
Taxation effect on sale of investments - - 6.9
Loss/(profit) on sale of assets 2.4 1.3 (0.5)
Taxation effect on sale of assets (0.3) (0.3) -
Impairment of investments 1.2 - 196.6
Headline earnings 1,270.1 1,101.4 1,039.1
Headline earnings per share - cents 176 153 147
Year to date
June June
2011 2010
Net earnings 2,367.2 1,215.6
Profit on sale of investments - (88.2)
Taxation effect on sale of investments - 6.9
Loss/(profit) on sale of assets 3.7 (1.4)
Taxation effect on sale of assets (0.6) 0.3
Impairment of investments 1.2 197.9
Headline earnings 2,371.5 1,331.1
Headline earnings per share - cents 329 189
Based on headline earnings as given above divided by 721,981,479 (March 2011 -
720,785,806 and June 2010 - 705,826,038) being the weighted average number of
ordinary shares in issue.
Reconciliation of headline earnings with net earnings
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
UNITED STATES DOLLARS
Quarter
June March June
2011 2011 2010
Net earnings 186.3 157.7 119.5
Profit on sale of investments - - (8.8)
Taxation effect on sale of investments - - 1.2
Loss/(profit) on sale of assets 0.3 0.2 -
Taxation effect on sale of assets (0.1) - -
Impairment of investments 0.2 - 25.9
Headline earnings 186.7 157.9 137.8
Headline earnings per share - cents 26 22 20
Year to date
June June
2011 2010
Net earnings 344.0 163.2
Profit on sale of investments - (12.6)
Taxation effect on sale of investments - 1.2
Loss/(profit) on sale of assets 0.5 (0.2)
Taxation effect on sale of assets (0.1) -
Impairment of investments 0.2 26.1
Headline earnings 344.6 177.7
Headline earnings per share - cents 48 25
Based on headline earnings as given above divided by 721,981,479 (March 2011 -
720,785,806 and June 2010 - 705,826,038) being the weighted average number of
ordinary shares in issue.
Hedging / Derivatives
The Groups 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.
There were no outstanding hedging or derivative as at the end of June 2011.
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 - 1,000.0 500.0
US dollar million 40.0 557.0 48.0
Dollar debt translated to rand 275.6 3,837.7 330.7
Total (Rm) 275.6 4,837.7 830.7
Utilisation - Committed loan
facilities (including US$ bond and
preference shares)
Rand million - - -
US dollar million 40.0 540.0 40.0
Dollar debt translated to rand 275.6 3,720.6 275.6
Total (Rm) 275.6 3,720.6 275.6
Long-term loans per balance sheet
(Rm)
Current portion of long-term loans
per balance sheet (Rm)
Total loans per balance sheet (Rm)
1 Jan 2014
to
31 Dec 2020 Total
Committed loan facilities (including US$ bond and
preference shares)
Rand million 1,500.0 3,000.0
US dollar million 2,072.1 2,717.1
Dollar debt translated to rand 14,276.9 18,720.9
Total (Rm) 15,776.9 21,720.9
Utilisation - Committed loan facilities (including
US$ bond and
preference shares)
Rand million - -
US dollar million 1,492.1 2,112.1
Dollar debt translated to rand 10,280.7 14,552.5
Total (Rm) 10,280.7 14,552.5
Long-term loans per balance sheet (Rm) 10,831.9
Current portion of long-term loans per balance sheet
(Rm) 3,720.6
Total loans per balance sheet (Rm) 14,552.5
Exchange rate: US$1 = R6.89 being the closing rate at the end of the June 2011
quarter.
Operating and financial results
SOUTH AFRICAN RAND
Total
Mine
Operations Total
Operating Results
Ore milled/treated (000 tonnes) June 2011 15,187 4,408
March 2011 14,458 4,020
Year to date 29,645 8,428
Yield (grams per tonne) June 2011 1.9 3.2
March 2011 2.0 3.2
Year to date 2.0 3.2
Gold produced (kilograms) June 2011 29,357 13,889
March 2011 28,646 12,784
Year to date 58,003 26,673
Gold sold (kilograms) June 2011 29,371 13,889
March 2011 28,775 12,784
Year to date 58,146 26,673
Gold price received (Rand per
kilogram) June 2011 326,206 328,778
March 2011 311,708 312,070
Year to date 319,031 320,770
Total cash cost (Rand per
kilogram) June 2011 177,934 220,261
March 2011 168,455 213,759
Year to date 173,243 217,145
Notional cash expenditure (Rand
per kilogram) June 2011 251,790 305,501
March 2011 241,716 295,494
Year to date 246,815 300,705
Operating costs (Rand per tonne) June 2011 346 697
March 2011 343 692
Financial Results (Rand million) Year to date 344 695
Revenue June 2011 9,581.0 4,566.4
March 2011 8,969.4 3,989.5
Year to date 18,550.4 8,555.9
Net operating costs June 2011 (5,124.2) (3,074.0)
March 2011 (4,878.4) (2,782.7)
Year to date (10,002.6) (5,856.7)
- Operating costs June 2011 (5,250.7) (3,074.0)
March 2011 (4,959.0) (2,782.7)
Year to date (10,209.7) (5,856.7)
- Gold inventory change June 2011 126.5 -
March 2011 80.6 -
Year to date 207.1 -
Operating profit June 2011 4,456.8 1,492.4
March 2011 4,091.0 1,206.8
Year to date 8,547.8 2,699.2
Amortisation of mining assets June 2011 (1,241.0) (665.9)
March 2011 (1,203.2) (648.9)
Year to date (2,444.2) (1,314.8)
Net operating profit June 2011 3,215.8 826.5
March 2011 2,887.8 557.9
Year to date 6,103.6 1,384.4
Other expenses June 2011 (157.5) (69.2)
March 2011 (126.3) (61.9)
Year to date (283.8) (131.1)
Profit before royalties and
taxation June 2011 3,058.3 757.3
March 2011 2,761.5 496.0
Year to date 5,819.8 1,253.3
Royalties, mining and income
taxation June 2011 (1,043.5) (240.2)
March 2011 (914.8) (187.4)
Year to date (1,958.3) (427.6)
- Normal taxation June 2011 (447.5) (2.6)
March 2011 (573.1) (44.6)
Year to date (1,020.6) (47.2)
- Royalties June 2011 (236.4) (42.3)
March 2011 (164.6) (35.3)
Year to date (401.0) (77.6)
- Deferred taxation June 2011 (359.6) (195.3)
March 2011 (177.1) (107.5)
Year to date (536.7) (302.8)
Profit before non-recurring items June 2011 2,014.8 517.1
March 2011 1,846.7 308.6
Year to date 3,861.5 825.7
Non-recurring items June 2011 (99.5) (41.0)
March 2011 (81.8) (41.6)
Year to date (181.3) (82.6)
Net profit June 2011 1,915.3 476.1
March 2011 1,764.9 267.0
Year to date 3,680.2 743.1
Net profit excluding gains and
losses on foreign exchange, June 2011 2,001.3 502.4
financial instruments and
non-recurring items March 2011 1,825.7 293.9
Year to date 3,827.0 796.3
Capital Expenditure June 2011 (2,141.1) (1,169.1)
March 2011 (1,965.2) (994.9)
Year to date (4,106.3) (2,164.0)
South Africa Region
KDC Beatrix South Deep
Operating Results
Ore milled/treated
(000 tonnes) June 2011 2,648 1,070 690
March 2011 2,534 908 578
Year to date 5,182 1,978 1,268
Yield (grams per tonne)June 2011 3.2 2.8 3.4
March 2011 3.2 2.5 4.0
Year to date 3.2 2.7 3.7
Gold produced
(kilograms) June 2011 8,475 3,048 2,366
March 2011 8,169 2,314 2,301
Year to date 16,644 5,362 4,667
Gold sold (kilograms) June 2011 8,475 3,048 2,366
March 2011 8,169 2,314 2,301
Year to date 16,644 5,362 4,667
Gold price received
(Rand per kilogram) June 2011 327,740 331,398 329,121
March 2011 311,788 312,576 312,560
Year to date 319,911 323,275 320,956
Total cash cost (Rand
per kilogram) June 2011 225,133 203,871 223,922
March 2011 206,916 232,411 219,296
Year to date 216,192 216,188 221,641
Notional cash
expenditure (Rand per
kilogram) June 2011 290,289 255,118 424,894
March 2011 264,341 300,173 401,391
Year to date 277,553 274,562 413,306
Operating costs (Rand
per tonne) June 2011 723 584 773
March 2011 679 605 887
Financial Results
(Rand million) Year to date 702 594 825
Revenue June 2011 2,777.6 1,010.1 778.7
March 2011 2,547.0 723.3 719.2
Year to date 5,324.6 1,733.4 1,497.9
Net operating costs June 2011 (1,915.4) (625.2) (533.4)
March 2011 (1,720.9) (549.4) (512.4)
Year to date (3,636.3) (1,174.6) (1,045.8)
- Operating costs June 2011 (1,915.4) (625.2) (533.4)
March 2011 (1,720.9) (549.4) (512.4)
Year to date (3,636.3) (1,174.6) (1,045.8)
- Gold inventory changeJune 2011 - - -
March 2011 - - -
Year to date - - -
Operating profit June 2011 862.2 384.9 245.3
March 2011 826.1 173.9 206.8
Year to date 1,688.3 558.8 452.1
Amortisation of mining
assets June 2011 (401.1) (139.0) (125.8)
March 2011 (413.0) (97.6) (138.3)
Year to date (814.1) (236.6) (264.1)
Net operating profit June 2011 461.1 245.9 119.5
March 2011 413.1 76.3 68.5
Year to date 874.2 322.2 188.0
Other expenses June 2011 (42.2) (10.9) (16.1)
March 2011 (37.5) (10.7) (13.7)
Year to date (79.7) (21.6) (29.8)
Profit before
royalties and taxation June 2011 418.9 235.0 103.4
March 2011 375.6 65.6 54.8
Year to date 794.5 300.6 158.2
Royalties, mining and
income taxation June 2011 (114.5) (86.8) (38.9)
March 2011 (137.3) (24.7) (25.4)
Year to date (251.8) (111.5) (64.3)
- Normal taxation June 2011 (2.6) - -
March 2011 (43.9) (0.7) -
Year to date (46.5) (0.7) -
- Royalties June 2011 (33.3) (5.1) (3.9)
March 2011 (28.1) (3.6) (3.6)
Year to date (61.4) (8.7) (7.5)
- Deferred taxation June 2011 (78.6) (81.7) (35.0)
March 2011 (65.3) (20.4) (21.8)
Year to date (143.9) (102.1) (56.8)
Profit before
non-recurring items June 2011 304.4 148.2 64.5
March 2011 238.3 40.9 29.4
Year to date 542.7 189.1 93.9
Non-recurring items June 2011 (23.9) (6.0) (11.1)
March 2011 (18.8) (12.2) (10.6)
Year to date (42.7) (18.2) (21.7)
Net profit June 2011 280.5 142.2 53.4
March 2011 219.5 28.7 18.8
Year to date 500.0 170.9 72.2
Net profit excluding
gains and losses on
foreign exchange, June 2011 296.0 146.1 60.3
financial instruments
and non-recurring
items March 2011 231.8 36.7 25.4
Year to date 527.8 182.8 85.7
Capital Expenditure June 2011 (544.8) (152.4) (471.9)
March 2011 (438.5) (145.2) (411.2)
Year to date (983.3) (297.6) (883.1)
Operating and financial results
SOUTH AFRICAN RAND West Africa Region
Ghana
Total Tarkwa Damang
Operating
Results
Ore
milled/treated (000
tonnes) June 2011 7,155 5,883 1,272
March 2011 7,053 5,803 1,250
Year to date 14,208 11,686 2,522
Yield (grams
per tonne) June 2011 1.0 1.0 1.4
March 2011 1.1 1.0 1.4
Year to date 1.1 1.0 1.4
Gold
produced
(kilograms) June 2011 7,377 5,625 1,752
March 2011 7,574 5,787 1,787
Year to date 14,951 11,412 3,539
Gold sold
(kilograms) June 2011 7,377 5,625 1,752
March 2011 7,574 5,787 1,787
Year to date 14,951 11,412 3,539
Gold price
received
(Rand per
kilogram) June 2011 329,375 329,387 329,338
March 2011 310,180 310,161 310,241
Year to date 319,651 319,637 319,695
Total cash
cost (Rand
per
kilogram) June 2011 122,841 116,302 143,836
March 2011 116,887 104,234 157,862
Year to date 119,825 110,182 150,918
Notional
cash
expenditure
(Rand per
kilogram) June 2011 193,019 193,689 190,868
March 2011 210,496 195,542 258,926
Year to date 201,873 194,628 225,233
Operating
costs (Rand
per tonne) June 2011 134 125 174
March 2011 143 127 221
Financial
Results
(Rand
million) Year to date 139 126 197
Revenue June 2011 2,429.8 1,852.8 577.0
March 2011 2,349.3 1,794.9 554.4
Year to date 4,779.1 3,647.7 1,131.4
Net
operating
costs June 2011 (825.0) (595.6) (229.4)
March 2011 (850.8) (576.4) (274.4)
Year to date (1,675.8) (1,172.0) (503.8)
- Operating
costs June 2011 (957.0) (735.5) (221.5)
March 2011 (1,011.4) (735.7) (275.7)
Year to date (1,968.4) (1,471.2) (497.2)
- Gold
inventory
change June 2011 132.0 139.9 (7.9)
March 2011 160.6 159.3 1.3
Year to date 292.6 299.2 (6.6)
Operating
profit June 2011 1,604.8 1,257.2 347.6
March 2011 1,498.5 1,218.5 280.0
Year to date 3,103.3 2,475.7 627.6
Amortisation
of mining
assets June 2011 (211.8) (174.6) (37.2)
March 2011 (222.4) (180.6) (41.8)
Year to date (434.2) (355.2) (79.0)
Net
operating
profit June 2011 1,393.0 1,082.6 310.4
March 2011 1,276.1 1,037.9 238.2
Year to date 2,669.1 2,120.5 548.6
Other
expenses June 2011 (56.0) (39.6) (16.4)
March 2011 (30.9) (21.8) (9.1)
Year to date (86.9) (61.4) (25.5)
Profit
before
royalties
and taxation June 2011 1,337.0 1,043.0 294.0
March 2011 1,245.2 1,016.1 229.1
Year to date 2,582.2 2,059.1 523.1
Royalties,
mining and
income
taxation June 2011 (458.6) (359.9) (98.7)
March 2011 (414.1) (335.2) (78.9)
Year to date (872.7) (695.1) (177.6)
- Normal
taxation June 2011 (259.7) (209.4) (50.3)
March 2011 (320.2) (291.9) (28.3)
Year to date (579.9) (501.3) (78.6)
- Royalties June 2011 (122.1) (93.1) (29.0)
March 2011 (70.5) (53.9) (16.6)
Year to date (192.6) (147.0) (45.6)
- Deferred
taxation June 2011 (76.8) (57.4) (19.4)
March 2011 (23.4) 10.6 (34.0)
Year to date (100.2) (46.8) (53.4)
Profit
before
non-recurring
items June 2011 878.4 683.1 195.3
March 2011 831.1 680.9 150.2
Year to date 1,709.5 1,364.0 345.5
Non-recurring
items June 2011 (42.3) (8.5) (33.8)
March 2011 (26.0) (23.9) (2.1)
Year to date (68.3) (32.4) (35.9)
Net profit June 2011 836.1 674.6 161.5
March 2011 805.1 657.0 148.1
Year to date 1,641.2 1,331.6 309.6
Net profit
excluding
gains and
losses on June 2011 881.5 690.2 191.3
foreign
exchange,
financial
instruments
and March 2011 826.0 674.0 152.0
non-recurring
items Year to date 1,707.5 1,364.2 343.3
Capital
Expenditure June 2011 (466.9) (354.0) (112.9)
March 2011 (582.9) (395.9) (187.0)
Year to date (1,049.8) (749.9) (299.9)
South
SOUTH AFRICAN RAND America
Region
Peru
Cerro
Corona Total
Operating Results
Ore milled/treated (000 tonnes) June 2011 1,717 1,907
March 2011 1,582 1,803
Year to date 3,299 3,710
Yield (grams per tonne) June 2011 1.8 2.6
March 2011 2.1 2.7
Year to date 2.0 2.7
Gold produced (kilograms) June 2011 3,143 4,948
March 2011 3,362 4,926
Year to date 6,505 9,874
Gold sold (kilograms) June 2011 3,157 4,948
March 2011 3,491 4,926
Year to date 6,648 9,874
Gold price received (Rand per kilogram) June 2011 304,846 327,890
March 2011 312,088 312,850
Year to date 308,649 320,387
Total cash cost (Rand per kilogram) June 2011 88,882 198,080
March 2011 86,823 188,023
Year to date 87,801 193,063
Notional cash expenditure (Rand per
kilogram) June 2011 114,604 275,788
March 2011 120,494 232,887
Year to date 117,648 254,385
Operating costs (Rand per tonne) June 2011 148 506
March 2011 182 486
Financial Results (Rand million) Year to date 165 496
Revenue June 2011 962.4 1,622.4
March 2011 1,089.5 1,541.1
Year to date 2,051.9 3,163.5
Net operating costs June 2011 (258.3) (966.9)
March 2011 (305.0) (939.9)
Year to date (563.3) (1,906.8)
- Operating costs June 2011 (254.7) (965.0)
March 2011 (288.1) (876.8)
Year to date (542.8) (1,841.8)
- Gold inventory change June 2011 (3.6) (1.9)
March 2011 (16.9) (63.1)
Year to date (20.5) (65.0)
Operating profit June 2011 704.1 655.5
March 2011 784.5 601.2
Year to date 1,488.6 1,256.7
Amortisation of mining assets June 2011 (102.7) (260.6)
March 2011 (97.3) (234.6)
Year to date (200.0) (495.2)
Net operating profit June 2011 601.4 394.9
March 2011 687.2 366.6
Year to date 1,288.6 761.5
Other expenses June 2011 (22.2) (10.1)
March 2011 (23.4) (10.1)
Year to date (45.6) (20.2)
Profit before royalties and taxation June 2011 579.2 384.8
March 2011 663.8 356.5
Year to date 1,243.0 741.3
Royalties, mining and income taxation June 2011 (202.9) (141.8)
March 2011 (181.8) (131.5)
Year to date (384.7) (273.3)
- Normal taxation June 2011 (185.2) -
March 2011 (208.3) -
Year to date (393.5) -
- Royalties June 2011 (30.4) (41.6)
March 2011 (19.9) (38.9
Year to date (50.3) (80.5)
- Deferred taxation June 2011 12.7 (100.2)
March 2011 46.4 (92.6)
Year to date 59.1 (192.8)
Profit before non-recurring items June 2011 376.3 243.0
March 2011 482.0 225.0
Year to date 858.3 468.0
Non-recurring items June 2011 (0.2) (16.0)
March 2011 (1.3) (12.9)
Year to date (1.5) (28.9)
Net profit June 2011 376.1 227.0
March 2011 480.7 212.1
Year to date 856.8 439.1
Net profit excluding gains and losses on June 2011 376.3 241.1
foreign exchange, financial instruments
and March 2011 481.6 224.2
non-recurring items Year to date 857.9 465.3
Capital Expenditure June 2011 (105.5) (399.6)
March 2011 (117.0) (270.4)
Year to date (222.5) (670.0)
SOUTH AFRICAN RAND Australasia Region #
Australia
St Ives Agnew
Operating Results
Ore milled/treated (000
tonnes) June 2011 1,676 231
March 2011 1,619 184
Year to date 3,295 415
Yield (grams per tonne) June 2011 2.0 6.8
March 2011 2.3 6.4
Year to date 2.2 6.6
Gold produced (kilograms) June 2011 3,379 1,569
March 2011 3,747 1,179
Year to date 7,126 2,748
Gold sold (kilograms) June 2011 3,379 1,569
March 2011 3,747 1,179
Year to date 7,126 2,748
Gold price received
(Rand per kilogram) June 2011 327,079 329,637
March 2011 312,410 314,249
Year to date 319,366 323,035
Total cash cost (Rand
per kilogram) June 2011 221,367 147,929
March 2011 193,541 170,483
Year to date 206,736 157,606
Notional cash
expenditure (Rand per
kilogram ) June 2011 298,935 225,940
March 2011 224,393 259,881
Year to date 259,739 240,502
Operating costs (Rand
per tonne) June 2011 438 996
March 2011 417 1,097
Financial Results (Rand
million) Year to date 428 1,041
Revenue June 2011 1,105.2 517.2
March 2011 1,170.6 370.5
Year to date 2,275.8 887.7
Net operating costs June 2011 (740.2) (226.7)
March 2011 (735.6) (204.3)
Year to date (1,475.8) (431.0)
- Operating costs June 2011 (734.9) (230.1)
March 2011 (675.0) (201.8)
Year to date (1,409.9) (431.9)
- Gold inventory change June 2011 (5.3) 3.4
March 2011 (60.6) (2.5)
Year to date (65.9) 0.9
Operating profit June 2011 365.0 290.5
March 2011 435.0 166.2
Year to date 800.0 456.7
Amortisation of mining
assets June 2011
March 2011
Year to date
Net operating profit June 2011
March 2011
Year to date
Other expenses June 2011
March 2011
Year to date
Profit before royalties
and taxation June 2011
March 2011
Year to date
Royalties, mining and
income taxation June 2011
March 2011
Year to date
- Normal taxation June 2011
March 2011
Year to date
- Royalties June 2011
March 2011
Year to date
- Deferred taxation June 2011
March 2011
Year to date
Profit before
non-recurring items June 2011
March 2011
Year to date
Non-recurring items June 2011
March 2011
Year to date
Net profit June 2011
March 2011
Year to date
Net profit excluding
gains and losses on June 2011
foreign exchange,
financial instruments
and March 2011
non-recurring items Year to date
Capital Expenditure June 2011 (275.2) (124.4)
March 2011 (165.8) (104.6)
Year to date (441.0) (229.0)
# 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
Total
Mine
Operations Total
Operating Results
Ore milled/treated (000 tonnes) June 2011 15,187 4,408
March 2011 14,458 4,020
Year to date 29,645 8,428
Yield (ounces per tonne) June 2011 0.062 0.101
March 2011 0.064 0.102
Year to date 0.063 0.102
Gold produced (000 ounces) June 2011 943.8 446.5
March 2011 921.0 411.0
Year to date 1,864.8 857.7
Gold sold (000 ounces) June 2011 944.3 446.5
March 2011 925.1 411.0
Year to date 1,869.4 857.7
Gold price received (dollars per ounce)June 2011 1,496 1,508
March 2011 1,389 1,391
Year to date 1,442 1,450
Total cash cost (dollars per ounce) June 2011 816 1,010
March 2011 751 953
Year to date 783 982
Notional cash expenditure (dollars per
ounce) June 2011 1,155 1,401
March 2011 1,077 1,317
Year to date 1,116 1,359
Operating costs (dollars per tonne) June 2011 51 103
March 2011 49 99
Financial Results ($ million) Year to date 50 101
Revenue June 2011 1,411.3 672.0
March 2011 1,285.0 571.6
Year to date 2,696.3 1,243.6
Net operating costs June 2011 (754.9) (452.6)
March 2011 (699.0) (398.7)
Year to date (1,453.9) (851.3)
- Operating costs June 2011 (773.5) (452.6)
March 2011 (710.5) (398.7)
Year to date (1,484.0) (851.3)
- Gold inventory change June 2011 18.6 -
March 2011 11.5 -
Year to date 30.1 -
Operating profit June 2011 656.4 219.4
March 2011 586.0 172.9
Year to date 1,242.4 392.3
Amortisation of mining assets June 2011 (182.9) (98.1)
March 2011 (172.4) (93.0)
Year to date (355.3) (191.1)
Net operating profit June 2011 473.5 121.3
March 2011 413.6 79.9
Year to date 887.2 201.2
Other expenses June 2011 (23.2) (10.2)
March 2011 (18.1) (8.9)
Year to date (41.3) (19.1)
Profit before royalties and taxation June 2011 450.4 111.1
March 2011 395.5 71.1
Year to date 845.9 182.2
Royalties, mining and income taxation June 2011 (153.6) (35.3)
March 2011 (131.1) (26.8)
Year to date (284.6) (62.2)
- Normal taxation June 2011 (66.2) (0.5)
March 2011 (82.1) (6.4)
Year to date (148.3) (6.9)
- Royalties June 2011 (34.7) (6.2)
March 2011 (23.6) (5.1)
Year to date (58.3) (11.3)
- Deferred taxation June 2011 (52.6) (28.6)
March 2011 (25.4) (15.4)
Year to date (78.0) (44.0)
Profit before non-recurring items June 2011 296.8 75.8
March 2011 264.5 44.2
Year to date 561.3 120.0
Non-recurring items June 2011 (14.6) (6.0)
March 2011 (11.7) (6.0)
Year to date (26.4) (12.0)
Net profit June 2011 282.2 69.8
March 2011 252.8 38.3
Year to date 534.9 108.0
Net profit excluding gains and losses
on foreign June 2011 294.7 73.6
exchange, financial instruments and
non-recurring March 2011 261.6 42.1
items Year to date 556.3 115.7
Capital Expenditure June 2011 (315.3) (172.0)
March 2011 (281.5) (142.5)
Year to date (596.8) (314.5)
South Africa Region
KDC Beatrix South Deep
Operating Results
Ore milled/treated
(000 tonnes) June 2011 2,648 1,070 690
March 2011 2,534 908 578
Year to date 5,182 1,978 1,268
Yield (ounces per
tonne) June 2011 0.103 0.092 0.110
March 2011 0.104 0.082 0.128
Year to date 0.103 0.087 0.118
Gold produced (000
ounces) June 2011 272.5 98.0 76.1
March 2011 262.6 74.4 74.0
Year to date 535.1 172.4 150.0
Gold sold (000
ounces) June 2011 272.5 98.0 76.1
March 2011 262.6 74.4 74.0
Year to date 535.1 172.4 150.0
Gold price received
(dollars per ounce) June 2011 1,504 1,520 1,510
March 2011 1,389 1,393 1,393
Year to date 1,446 1,461 1,451
Total cash cost
(dollars per ounce) June 2011 1,033 935 1,027
March 2011 922 1,036 977
Year to date 977 977 1,002
Notional cash
expenditure
(dollars per ounce) June 2011 1,332 1,170 1,949
March 2011 1,178 1,338 1,789
Year to date 1,255 1,241 1,868
Operating costs
(dollars per tonne) June 2011 107 86 114
March 2011 97 87 127
Financial Results
($ million) Year to date 102 86 120
Revenue June 2011 409.0 148.3 114.7
March 2011 364.9 103.6 103.0
Year to date 773.9 251.9 217.7
Net operating costs June 2011 (282.0) (92.0) (78.6)
March 2011 (246.5) (78.7) (73.4)
Year to date (528.5) (170.7) (152.0)
- Operating costs June 2011 (282.0) (92.0) (78.6)
March 2011 (246.5) (78.7) (73.4)
Year to date (528.5) (170.7) (152.0)
- Gold inventory
change June 2011 - - -
March 2011 - - -
Year to date - - -
Operating profit June 2011 127.0 56.3 36.1
March 2011 118.4 24.9 29.6
Year to date 245.4 81.2 65.7
Amortisation of
mining assets June 2011 (59.2) (20.4) (18.6)
March 2011 (59.2) (14.0) (19.8)
Year to date (118.3) (34.4) (38.4)
Net operating profitJune 2011 67.9 35.9 17.5
March 2011 59.2 10.9 9.8
Year to date 127.1 46.8 27.3
Other expenses June 2011 (6.2) (1.6) (2.4)
March 2011 (5.4) (1.5) (2.0)
Year to date (11.6) (3.1) (4.3)
Profit before
royalties and
taxation June 2011 61.7 34.3 15.1
March 2011 53.8 9.4 7.9
Year to date 115.5 43.7 23.0
Royalties, mining
and income taxation June 2011 (16.9) (12.7) (5.7)
March 2011 (19.7) (3.5) (3.6)
Year to date (36.6) (16.2) (9.3)
- Normal taxation June 2011 (0.5) - -
March 2011 (6.3) (0.1) -
Year to date (6.8) (0.1) -
- Royalties June 2011 (4.9) (0.7) (0.6)
March 2011 (4.0) (0.5) (0.5)
Year to date (8.9) (1.3) (1.1)
- Deferred taxation June 2011 (11.6) (11.9) (5.1)
March 2011 (9.4) (2.9) (3.1)
Year to date (20.9) (14.8) (8.3)
Profit before
non-recurring items June 2011 44.7 21.6 9.4
March 2011 34.1 5.9 4.2
Year to date 78.9 27.5 13.6
Non-recurring items June 2011 (3.5) (0.9) (1.6)
March 2011 (2.7) (1.7) (1.5)
Year to date (6.2) (2.6) (3.2)
Net profit June 2011 41.2 20.7 7.8
March 2011 31.4 4.1 2.7
Year to date 72.7 24.8 10.5
Net profit
excluding gains and
losses on foreign June 2011 43.5 21.3 8.8
exchange, financial
instruments and
non-recurring March 2011 33.2 5.3 3.6
items Year to date 76.7 26.6 12.5
Capital Expenditure June 2011 (80.1) (22.5) (69.4)
March 2011 (62.8) (20.8) (58.9)
Year to date (142.9) (43.3) (128.4)
Average exchange rates were US$1 = R6.78 and US$1 = R6.98 for the June 2011 and
March 2011 quarters respectively.
The Australian dollar exchange rates were A$1 = R7.18 and A$1 = R7.00 for the
June 2011 and the March 2011 quarters respectively.
Operating and financial results
UNITED STATES DOLLARS West Africa Region
Ghana
Total Tarkwa Damang
Operating Results
Ore milled/treated June 2011 7,155 5,883 1,272
(000 tonnes) March 2011 7,053 5,803 1,250
Year to date 14,208 11,686 2,522
Yield (ounces per tonne) June 2011 0.033 0.031 0.044
March 2011 0.035 0.032 0.046
Year to date 0.034 0.031 0.045
Gold produced (000
ounces) June 2011 237.2 180.8 56.3
March 2011 243.5 186.1 57.5
Year to date 480.6 366.9 113.8
Gold sold (000 ounces) June 2011 237.2 180.8 56.3
March 2011 243.5 186.1 57.5
Year to date 480.6 366.9 113.8
Gold price received June 2011 1,511 1,511 1,511
(dollars per ounce) March 2011 1,382 1,382 1,382
Year to date 1,445 1,445 1,445
Total cash cost June 2011 564 534 660
(dollars per ounce) March 2011 521 464 703
Year to date 542 498 682
Notional cash
expenditure June 2011 885 889 876
(dollars per ounce) March 2011 938 871 1,154
Year to date 913 880 1,018
Operating costs June 2011 20 18 26
(dollars per tonne) March 2011 21 18 32
Year to date 20 18 29
Financial Results ($
million)
Revenue June 2011 358.1 273.0 85.0
March 2011 336.6 257.1 79.4
Year to date 694.6 530.2 164.4
Net operating costs June 2011 (121.7) (87.8) (33.9)
March 2011 (121.9) (82.6) (39.3)
Year to date (243.6) (170.3) (73.2)
- Operating costs June 2011 (141.2) (108.4) (32.8)
March 2011 (144.9) (105.4) (39.5)
Year to date (286.1) (213.8) (72.3)
- Gold inventory change June 2011 19.5 20.7 (1.1)
March 2011 23.0 22.8 0.2
Year to date 42.5 43.5 (1.0)
Operating profit June 2011 236.4 185.3 51.1
March 2011 214.7 174.6 40.1
Year to date 451.1 359.8 91.2
Amortisation of mining June 2011 (31.2) (25.8) (5.5)
Assets March 2011 (31.9) (25.9) (6.0)
Year to date (63.1) (51.6) (11.5)
Net operating profit June 2011 205.1 159.5 45.6
March 2011 182.8 148.7 34.1
Year to date 388.0 308.2 79.7
Other expenses June 2011 (8.2) (5.8) (2.4)
March 2011 (4.4) (3.1) (1.3)
Year to date (12.6) (8.9) (3.7)
Profit before royalties
and June 2011 196.9 153.7 43.2
taxation March 2011 178.4 145.6 32.8
Year to date 375.3 299.3 76.0
Royalties, mining and
income June 2011 (67.5) (53.0) (14.5)
taxation March 2011 (59.3) (48.0) (11.3)
Year to date (126.8) (101.0) (25.8)
- Normal taxation June 2011 (38.4) (31.0) (7.4)
March 2011 (45.9) (41.8) (4.1)
Year to date (84.3) (72.9) (11.4)
- Royalties June 2011 (17.9) (13.6) (4.2)
March 2011 (10.1) (7.7) (2.4)
Year to date (28.0) (21.4) (6.6)
- Deferred taxation June 2011 (11.2) (8.3) (2.9)
March 2011 (3.4) 1.5 (4.9)
Year to date (14.6) (6.8) (7.8)
Profit before June 2011 129.4 100.7 28.7
non-recurring items March 2011 119.1 97.6 21.5
Year to date 248.5 198.3 50.2
Non-recurring items June 2011 (6.2) (1.3) (4.9)
March 2011 (3.7) (3.4) (0.3)
Year to date (9.9) (4.7) (5.2)
Net profit June 2011 123.2 99.4 23.8
March 2011 115.3 94.1 21.2
Year to date 238.5 193.5 45.0
Net profit excluding
gains and June 2011 129.8 101.7 28.1
losses on foreign
exchange, March 2011 118.3 96.6 21.8
financial instruments
and Year to date 248.2 198.3 49.9
non-recurring items
Capital Expenditure June 2011 (69.1) (52.3) (16.8)
March 2011 (83.5) (56.7) (26.8)
Year to date (152.6) (109.0) (43.6)
UNITED STATES DOLLARS South America
Region
Peru
Cerro
Corona Total
Operating Results
Ore milled/treated June 2011 1,717 1,907
(000 tonnes) March 2011 1,582 1,803
Year to date 3,299 3,710
Yield (ounces per tonne) June 2011 0.059 0.083
March 2011 0.068 0.088
Year to date 0.063 0.086
Gold produced (000 ounces) June 2011 101.0 159.1
March 2011 108.1 158.4
Year to date 209.1 317.5
Gold sold (000 ounces) June 2011 101.5 159.1
March 2011 112.2 158.4
Year to date 213.7 317.5
Gold price received June 2011 1,398 1,504
(dollars per ounce) March 2011 1,391 1,394
Year to date 1,395 1,448
Total cash cost June 2011 408 909
(dollars per ounce) March 2011 387 838
Year to date 397 873
Notional cash expenditure June 2011 526 1,265
(dollars per ounce) March 2011 537 1,038
Year to date 532 1,150
Operating costs June 2011 22 75
(dollars per tonne) March 2011 26 70
Year to date 24 72
Financial Results ($ million)
Revenue June 2011 142.2 239.0
March 2011 156.1 220.8
Year to date 298.2 459.8
Net operating costs June 2011 (38.2) (142.5)
March 2011 (43.7) (134.7)
Year to date (81.9) (277.2)
- Operating costs June 2011 (37.6) (142.1)
March 2011 (41.3) (125.6)
Year to date (78.9) (267.7)
- Gold inventory change June 2011 (0.6) (0.4)
March 2011 (2.4) (9.0)
Year to date (3.0) (9.4)
Operating profit June 2011 104.0 96.5
March 2011 112.4 86.1
Year to date 216.4 182.2
Amortisation of mining June 2011 (15.1) (38.4)
Assets March 2011 (13.9) (33.6)
Year to date (29.1) (72.0)
Net operating profit June 2011 88.8 58.2
March 2011 98.5 52.5
Year to date 187.3 110.7
Other expenses June 2011 (3.3) (1.5)
March 2011 (3.4) (1.4)
Year to date (6.6) (2.9)
Profit before royalties and June 2011 85.6 56.7
Taxation March 2011 95.1 51.1
Year to date 180.7 107.7
Royalties, mining and income June 2011 (29.9) (20.9)
taxation March 2011 (26.0) (18.8)
Year to date (55.9) (39.7)
- Normal taxation June 2011 (27.4) -
March 2011 (29.8) -
Year to date (57.2) -
- Royalties June 2011 (4.5) (6.1)
March 2011 (2.9) (5.6)
Year to date (7.3) (11.7)
- Deferred taxation June 2011 1.9 (14.8)
March 2011 6.6 (13.3)
Year to date 8.6 (28.0)
Profit before June 2011 55.7 35.8
non-recurring items March 2011 69.1 32.2
Year to date 124.8 68.0
Non-recurring items June 2011 (2.4)
March 2011 (0.2) (1.8)
Year to date (0.2) (4.2)
Net profit June 2011 55.7 33.4
March 2011 68.9 30.4
Year to date 124.5 63.8
Net profit excluding gains and June 2011 55.7 35.5
losses on foreign exchange, March 2011 69.0 32.1
financial instruments and Year to date 124.7 67.6
non-recurring items
Capital Expenditure June 2011 (15.6) (58.6)
March 2011 (16.8) (38.7)
Year to date (32.3) (97.4)
UNITED STATES DOLLARS Australasia Region AUSTRALIAN DOLLARS
Australia#
St Ives Agnew Total
Operating Results
Ore milled/treated June 2011 1,676 231 1,907
(000 tonnes) March 2011 1,619 184 1,803
Year to date 3,295 415 3,710
Yield (ounces per tonne) June 2011 0.065 0.218 0.083
March 2011 0.074 0.206 0.088
Year to date 0.070 0.213 0.086
Gold produced (000
ounces) June 2011 108.7 50.4 159.1
March 2011 120.5 37.9 158.4
Year to date 229.1 88.4 317.5
Gold sold (000 ounces) June 2011 108.7 50.4 159.1
March 2011 120.5 37.9 158.4
Year to date 229.1 88.4 317.5
Gold price received June 2011 1,500 1,512 1,420
(dollars per ounce) March 2011 1,392 1,400 1,390
Year to date 1,444 1,460 1,406
Total cash cost June 2011 1,015 679 858
(dollars per ounce) March 2011 862 760 835
Year to date 935 713 847
Notional cash expenditure June 2011 1,371 1,037 1,195
(dollars per ounce) March 2011 1,000 1,158 1,035
Year to date 1,174 1,087 1,116
Operating costs June 2011 65 147 70
(dollars per tonne) March 2011 60 157 69
Year to date 62 151 70
Financial Results ($
million)
Revenue June 2011 163.1 75.9 226.0
March 2011 167.7 53.1 220.2
Year to date 330.8 129.0 446.2
Net operating costs June 2011 (109.1) (33.4) (134.7)
March 2011 (105.4) (29.3) (134.3)
Year to date (214.5) (62.6) (268.9)
- Operating costs June 2011 (108.2) (33.9) (134.5)
March 2011 (96.7) (28.9) (125.3)
Year to date (204.9) (62.8) (259.8)
- Gold inventory change June 2011 (0.9) 0.5 (0.2)
March 2011 (8.7) (0.4) (9.0)
Year to date (9.6) 0.1 (9.2)
Operating profit June 2011 54.0 42.6 91.4
March 2011 62.3 23.8 85.9
Year to date 116.3 66.4 177.2
Amortisation of mining June 2011 (36.3)
Assets March 2011 (33.5)
Year to date (69.8)
Net operating profit June 2011 55.0
March 2011 52.4
Year to date 107.4
Other expenses June 2011 (1.4)
March 2011 (1.4)
Year to date (2.8)
Profit before royalties
and June 2011 53.6
taxation March 2011 50.9
Year to date 104.6
Royalties, mining and
income June 2011 (19.8)
taxation March 2011 (18.8)
Year to date (38.5)
- Normal taxation June 2011 -
March 2011 -
Year to date -
- Royalties June 2011 (5.8)
March 2011 (5.6)
Year to date (11.4)
- Deferred taxation June 2011 (14.0)
March 2011 (13.2)
Year to date (27.2)
Profit before June 2011 33.9
non-recurring items March 2011 32.1
Year to date 66.0
Non-recurring items June 2011 (2.2)
March 2011 (1.8)
Year to date (4.1)
Net profit June 2011 31.6
March 2011 30.3
Year to date 61.9
Net profit excluding
gains and June 2011 33.6
losses on foreign
exchange, March 2011 32.0
financial instruments andYear to date 65.6
non-recurring items
Capital Expenditure June 2011 (40.3) (18.3) (55.9)
March 2011 (23.8) (15.0) (38.6)
Year to date (64.1) (33.3) (94.5)
Australasia Region#
St Ives Agnew
Operating Results
Ore milled/treated June 2011 1,676 231
(000 tonnes) March 2011 1,619 184
Year to date 3,295 415
Yield (ounces per tonne) June 2011 0.065 0.218
March 2011 0.074 0.206
Year to date 0.070 0.213
Gold produced (000 ounces) June 2011 108.7 50.4
March 2011 120.5 37.9
Year to date 229.1 88.4
Gold sold (000 ounces) June 2011 108.7 50.4
March 2011 120.5 37.9
Year to date 229.1 88.4
Gold price received June 2011 1,417 1,428
(dollars per ounce) March 2011 1,388 1,396
Year to date 1,401 1,417
Total cash cost June 2011 959 641
(dollars per ounce) March 2011 860 758
Year to date 907 691
Notional cash expenditure June 2011 1,295 979
(dollars per ounce) March 2011 997 1,155
Year to date 1,139 1,055
Operating costs June 2011 61 139
(dollars per tonne) March 2011 60 157
Year to date 60 147
Financial Results ($ million)
Revenue June 2011 153.8 72.3
March 2011 167.2 52.9
Year to date 321.0 125.2
Net operating costs June 2011 (103.1) (31.6)
March 2011 (105.1) (29.2)
Year to date (208.2) (60.8)
- Operating costs June 2011 (102.4) (32.1)
March 2011 (96.4) (28.8)
Year to date (198.9) (60.9)
- Gold inventory change June 2011 (0.6) 0.5
March 2011 (8.7) (0.4)
Year to date (9.3) 0.1
Operating profit June 2011 50.7 40.7
March 2011 62.1 23.7
Year to date 112.8 64.4
Amortisation of mining June 2011
Assets March 2011
Year to date
Net operating profit June 2011
March 2011
Year to date
Other expenses June 2011
March 2011
Year to date
Profit before royalties and June 2011
Taxation March 2011
Year to date
Royalties, mining and income June 2011
taxation March 2011
Year to date
- Normal taxation June 2011
March 2011
Year to date
- Royalties June 2011
March 2011
Year to date
- Deferred taxation June 2011
March 2011
Year to date
Profit before June 2011
non-recurring items March 2011
Year to date
Non-recurring items June 2011
March 2011
Year to date
Net profit June 2011
March 2011
Year to date
Net profit excluding gains and June 2011
losses on foreign exchange, March 2011
financial instruments and Year to date
non-recurring items
Capital Expenditure June 2011 (38.5) (17.4)
March 2011 (23.7) (14.9)
Year to date (62.2) (32.3)
# As a significant portion of the acquisition price was allocated to tenements
of St Ives and Agnew on endowment ounces and also as these two Australian
operations are entitled to transfer and then off-set tax losses from one company
to another, it is not meaningful to split the income statement below operating
profit.
Figures may not add as they are rounded independently.
Total cash cost
Gold Industry Standards Basis
Figures are in South African rand millions unless otherwise stated
Total
Mine
Operations Total
Operating costs(1) June 2011 (5,250.7) (3,074.0)
March 2011 (4,959.0) (2,782.7)
Year to date (10,209.7) (5,856.7)
Gold-in-process and June 2011 114.7 -
inventory change* March 2011 75.6 -
Year to date 190.3 -
Less: June 2011 (27.3) (17.3)
Rehabilitation costs March 2011 (24.1) (17.3)
Year to date (51.4) (34.6)
General and admin June 2011 (119.0) (39.8)
March 2011 (176.6) (68.0)
Year to date (295.6) (107.8)
Plus: June 2011 (236.4) (42.3)
Royalties March 2011 (164.6) (35.3)
Year to date (401.0) (77.6)
TOTAL CASH COST(2) June 2011 (5,226.1) (3,059.2)
March 2011 (4,847.3) (2,732.7)
Year to date (10,073.4) (5,791.9)
Plus: June 2011 (1,229.2) (665.9)
Amortisation* March 2011 (1,198.2) (648.9)
Year to date (2,427.4) (1,314.8)
Rehabilitation June 2011 (27.3) (17.3)
March 2011 (24.1) (17.3)
Year to date (51.4) (34.6)
TOTAL PRODUCTION(3) June 2011 (6,482.6) (3,742.4)
COST March 2011 (6,069.6) (3,398.9)
Year to date (12,552.2) (7,141.3)
Gold sold June 2011 944.3 446.5
- thousand ounces March 2011 925.1 411.0
Year to date 1,869.4 857.7
TOTAL CASH COST June 2011 816 1,010
- US$/oz March 2011 751 953
Year to date 783 982
TOTAL CASH COST June 2011 177,934 220,261
- R/kg March 2011 168,455 213,759
Year to date 173,243 217,145
TOTAL PRODUCTION June 2011 1,013 1,236
COST - US$/oz March 2011 940 1,185
Year to date 976 1,210
TOTAL PRODUCTION June 2011 220,714 269,451
COST - R/kg March 2011 210,933 265,871
Year to date 215,874 267,735
South Africa Region
South
KDC Beatrix Deep
Operating costs(1) June 2011 (1,915.4) (625.2) (533.4)
March 2011 (1,720.9) (549.4) (512.4)
Year to date (3,636.3) (1,174.6) (1,045.8)
Gold-in-process and June 2011 - - -
inventory change* March 2011 - - -
Year to date - - -
Less: June 2011 (12.4) (3.6) (1.3)
Rehabilitation costs March 2011 (12.4) (3.6) (1.3)
Year to date (24.8) (7.2) (2.6)
General and admin June 2011 (28.3) (5.3) (6.2)
March 2011 (46.3) (11.6) (10.1)
Year to date (74.6) (16.9) (16.3)
Plus: June 2011 (33.3) (5.1) (3.9)
Royalties March 2011 (28.1) (3.6) (3.6)
Year to date (61.4) (8.7) (7.5)
TOTAL CASH COST(2) June 2011 (1,908.0) (621.4) (529.8)
March 2011 (1,690.3) (537.8) (504.6)
Year to date (3,598.3) (1,159.2) (1,034.4)
Plus: June 2011 (401.1) (139.0) (125.8)
Amortisation* March 2011 (413.0) (97.6) (138.3)
Year to date (814.1) (236.6) (264.1)
Rehabilitation June 2011 (12.4) (3.6) (1.3)
March 2011 (12.4) (3.6) (1.3)
Year to date (24.8) (7.2) (2.6)
TOTAL PRODUCTION(3) June 2011 (2,321.5) (764.0) (656.9)
COST March 2011 (2,115.7) (639.0) (644.2)
Year to date (4,437.2) (1,403.0) (1,301.1)
Gold sold June 2011 272.5 98.0 76.1
- thousand ounces March 2011 262.6 74.4 74.0
Year to date 535.1 172.4 150.0
TOTAL CASH COST June 2011 1,033 935 1,027
- US$/oz March 2011 922 1,036 977
Year to date 977 977 1,002
TOTAL CASH COST June 2011 225,133 203,871 223,922
- R/kg March 2011 206,916 232,411 219,296
Year to date 216,192 216,188 221,641
TOTAL PRODUCTION June 2011 1,257 1,150 1,274
COST - US$/oz March 2011 1,154 1,231 1,248
Year to date 1,205 1,183 1,260
TOTAL PRODUCTION June 2011 273,923 250,656 277,642
COST - R/kg March 2011 258,991 276,145 279,965
Year to date 266,595 261,656 278,787
West Africa Region
Ghana
Total Tarkwa Damang
Operating costs(1) June 2011 (957.0) (735.5) (221.5)
March 2011 (1,011.4) (735.7) (275.7)
Year to date (1,968.4) (1,471.2) (497.2)
Gold-in-process and June 2011 107.1 115.7 (8.6)
inventory change* March 2011 133.4 130.5 2.9
Year to date 240.5 246.2 (5.7)
Less: June 2011 (4.8) (4.2) (0.6)
Rehabilitation costs March 2011 (1.6) (1.1) (0.5)
Year to date (6.4) (5.3) (1.1)
General and admin June 2011 (61.0) (54.5) (6.5)
March 2011 (61.6) (54.8) (6.8)
Year to date (122.6) (109.3) (13.3)
Plus: June 2011 (122.1) (93.1) (29.0)
Royalties March 2011 (70.5) (53.9) (16.6)
Year to date (192.6) (147.0) (45.6)
TOTAL CASH COST(2) June 2011 (906.2) (654.2) (252.0)
March 2011 (885.3) (603.2) (282.1)
Year to date (1,791.5) (1,257.4) (534.1)
Plus: June 2011 (186.9) (150.4) (36.5)
Amortisation* March 2011 (195.2) (151.8) (43.4)
Year to date (382.1) (302.2) (79.9)
Rehabilitation June 2011 (4.8) (4.2) (0.6)
March 2011 (1.6) (1.1) (0.5)
Year to date (6.4) (5.3) (1.1)
TOTAL PRODUCTION(3) June 2011 (1,097.9) (808.8) (289.1)
COST March 2011 (1,082.1) (756.1) (326.0)
Year to date (2,180.0) (1,564.9) (615.1)
Gold sold June 2011 237.2 180.8 56.3
- thousand ounces March 2011 243.5 186.1 57.5
Year to date 480.6 366.9 113.8
TOTAL CASH COST June 2011 564 534 660
- US$/oz March 2011 521 464 703
Year to date 542 498 682
TOTAL CASH COST June 2011 122,841 116,302 143,836
- R/kg March 2011 116,887 104,234 157,862
Year to date 119,825 110,182 150,918
TOTAL PRODUCTION June 2011 683 660 757
COST - US$/oz March 2011 637 582 813
Year to date 659 620 786
TOTAL PRODUCTION June 2011 148,827 143,787 165,011
COST - R/kg March 2011 142,870 130,655 182,429
Year to date 145,810 137,128 173,806
South
America
Region
Peru
Cerro
Corona Total
Operating costs(1) June 2011 (254.7) (965.0)
March 2011 (288.1) (876.8)
Year to date (542.8) (1,841.8)
Gold-in-process and June 2011 8.9 (1.3)
inventory change* March 2011 (11.6) (46.2)
Year to date (2.7) (47.5)
Less: June 2011 (0.8) (4.4)
Rehabilitation costs March 2011 (0.9) (4.3)
Year to date (1.7) (8.7)
General and admin June 2011 5.2 (23.4)
March 2011 (15.6) (31.4)
Year to date (10.4) (54.8)
Plus: June 2011 (30.4) (41.6)
Royalties March 2011 (19.9) (38.9)
Year to date (50.3) (80.5)
TOTAL CASH COST(2) June 2011 (280.6) (980.1)
March 2011 (303.1) (926.2)
Year to date (583.7) (1,906.3)
Plus: June 2011 (115.2) (261.2)
Amortisation* March 2011 (102.6) (251.5)
Year to date (217.8) (512.7)
Rehabilitation June 2011 (0.8) (4.4)
March 2011 (0.9) (4.3)
Year to date (1.7) (8.7)
TOTAL PRODUCTION(3) June 2011 (396.6) (1,245.7)
COST March 2011 (406.6) (1,182.0)
Year to date (803.2) (2,427.7)
Gold sold June 2011 101.5 159.1
- thousand ounces March 2011 112.2 158.4
Year to date 213.7 317.5
TOTAL CASH COST June 2011 408 909
- US$/oz March 2011 387 838
Year to date 397 873
TOTAL CASH COST June 2011 88,882 198,080
- R/kg March 2011 86,823 188,023
Year to date 87,801 193,063
TOTAL PRODUCTION June 2011 576 1,155
COST - US$/oz March 2011 519 1,069
Year to date 546 1,112
TOTAL PRODUCTION June 2011 125,626 251,758
COST - R/kg March 2011 116,471 239,951
Year to date 120,818 245,868
Australasia Region
Australia
St Ives Agnew
Operating costs(1) June 2011 (734.9) (230.1)
March 2011 (675.0) (201.8)
Year to date (1,409.9) (431.9)
Gold-in-process and June 2011 (3.9) 2.6
inventory change* March 2011 (44.3) (1.9)
Year to date (48.2) 0.7
Less: June 2011 (3.5) (0.9)
Rehabilitation costs March 2011 (3.5) (0.8)
Year to date (7.0) (1.7)
General and admin June 2011 (15.3) (8.1)
March 2011 (20.2) (11.2)
Year to date (35.5) (19.3)
Plus: June 2011 (28.0) (13.6)
Royalties March 2011 (29.6) (9.3)
Year to date (57.6) (22.9)
TOTAL CASH COST(2) June 2011 (748.0) (232.1)
March 2011 (725.2) (201.0)
Year to date (1,473.2) (433.1)
Plus: June 2011
Amortisation* March 2011
Year to date
Rehabilitation June 2011
March 2011
Year to date
TOTAL PRODUCTION(3) June 2011
COST March 2011
Year to date
Gold sold June 2011 108.7 50.4
- thousand ounces March 2011 120.5 37.9
Year to date 229.1 88.4
TOTAL CASH COST June 2011 1,015 679
- US$/oz March 2011 862 760
Year to date 935 713
TOTAL CASH COST June 2011 221,367 147,929
- R/kg March 2011 193,541 170,483
Year to date 206,736 157,606
TOTAL PRODUCTION June 2011
COST - US$/oz March 2011
Year to date
TOTAL PRODUCTION June 2011
COST - R/kg March 2011
Year to date
DEFINITIONS
Total cash cost and Total production cost are calculated in accordance with the
Gold Institute Industry standard.
(1) Operating costs - All gold mining related costs before
amortisation/depreciation, changes in gold inventory, taxation and 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 = R6.78 and US$1 = R6.98 for the June 2011 and
March 2011 quarters respectively.
Capital expenditure##
Figures are in South African rand millions unless otherwise stated
Total Mine
Operations
Total
Sustaining capital June 2011 (1,009.9) (151.0)
March 2011 (983.1) (110.7)
Year to date (1,993.0) (261.7)
Ore reserve June 2011 (546.2) (546.2)
development March 2011 (473.0) (473.0)
Year to date (1,019.2) (1,019.2)
Project capital# June 2011 (622.4) (471.9)
March 2011 (515.9) (411.2)
Year to date (1,138.3) (883.1)
Brownfields June 2011 (106.5) -
Exploration March 2011 (96.6) -
Year to date (203.1) -
Total capital June 2011 (2,285.0) (1,169.1)
expenditure March 2011 (2,068.6) (994.9)
Year to date (4,353.6) (2,164.0)
South Africa Region
South
KDC Beatrix Deep
Sustaining capital June 2011 (108.9) (42.1) -
March 2011 (58.5) (52.2) -
Year to date (167.4) (94.3) -
Ore reserve June 2011 (435.9) (110.3) -
development March 2011 (380.0) (93.0) -
Year to date (815.9) (203.3) -
Project capital# June 2011 - - (471.9)
March 2011 - - (411.2)
Year to date - - (883.1)
Brownfields June 2011 - - -
Exploration March 2011 - - -
Year to date - - -
Total capital June 2011 (544.8) (152.4) (471.9)
expenditure March 2011 (438.5) (145.2) (411.2)
Year to date (983.3) (297.6) (883.1)
West Africa Region
Ghana
Total Tarkwa Damang
Sustaining capital June 2011 (439.1) (354.0) (85.1)
March 2011 (554.8) (395.9) (158.9)
Year to date (993.9) (749.9) (244.0)
Ore reserve June 2011 - - -
development March 2011 - - -
Year to date - - -
Project capital# June 2011 - - -
March 2011 - - -
Year to date - - -
Brownfields June 2011 (27.8) - (27.8)
Exploration March 2011 (28.1) - (28.1)
Year to date (55.9) - (55.9)
Total capital June 2011 (466.9) (354.0) (112.9)
expenditure March 2011 (582.9) (395.9) (187.0)
Year to date (1,049.8) (749.9) (299.9)
South
America
Region
Peru
Cerro
Corona Total
Sustaining capital June 2011 (98.1) (320.9)
March 2011 (113.4) (201.9)
Year to date (211.5) (522.8)
Ore reserve June 2011 - -
development March 2011 - -
Year to date - -
Project capital# June 2011 (7.4) -
March 2011 (3.6) -
Year to date (11.0) -
Brownfields June 2011 - (78.7)
Exploration March 2011 - (68.5)
Year to date - (147.2)
Total capital June 2011 (105.5) (399.6)
expenditure March 2011 (117.0) (270.4)
Year to date (222.5) (670.0)
Australasia Region Corporate
Australia
St Ives Agnew
Sustaining capital June 2011 (215.3) (105.6) (0.8)
March 2011 (113.2) (88.7) (2.3)
Year to date (328.5) (194.3) (3.1)
Ore reserve June 2011 - - -
development March 2011 - - -
Year to date - - -
Project capital# June 2011 - - (143.1)
March 2011 - - (101.1)
Year to date - - (244.2)
Brownfields June 2011 (59.9) (18.8) -
Exploration March 2011 (52.6) (15.9) -
Year to date (112.5) (34.7) -
Total capital June 2011 (275.2) (124.4) (143.9)
expenditure March 2011 (165.8) (104.6) (103.4)
Year to date (441.0) (229.0) (247.3)
# Project capital under Corporate in the June quarter includes exploration
expenditure of R119 million (US$18 million) at Chucapaca and R12 million (US$1
million) at the Arctic Platinum Project (APP). This compares to expenditure of
R85 million (US$12 million) and R16 million (US$2 million) at Chucapaca and APP
respectively in the March quarter. The balance includes general corporate
capital expenditure.
Notional cash expenditure##
Figures are in South African rand millions unless otherwise stated
Total
Group
Total
Operating costs June 2011 (5,250.7) (3,074.0)
March 2011 (4,959.0) (2,782.7)
Year to date (10,209.7) (5,856.7)
Capital June 2011 (2,285.0) (1,169.1)
expenditure March 2011 (2,068.6) (994.9)
Year to date (4,353.6) (2,164.0)
Notional cash June 2011 256,692 305,501
expenditure March 2011 245,326 295,494
- R/kg Year to date 251,078 300,705
Notional cash June 2011 1,178 1,401
expenditure March 2011 1,093 1,317
- US$/oz Year to date 1,135 1,359
South Africa Region
South
KDC Beatrix Deep
Operating costs June 2011 (1,915.4) (625.2) (533.4)
March 2011 (1,720.9) (549.4) (512.4)
Year to date (3,636.3) (1,174.6) (1,045.8)
Capital June 2011 (544.8) (152.4) (471.9)
expenditure March 2011 (438.5) (145.2) (411.2)
Year to date (983.3) (297.6) (883.1)
Notional cash June 2011 290,289 255,118 424,894
expenditure March 2011 264,341 300,173 401,391
- R/kg Year to date 277,553 274,562 413,306
Notional cash June 2011 1,332 1,170 1,949
expenditure March 2011 1,178 1,338 1,789
- US$/oz Year to date 1,255 1,241 1,868
West Africa Region
Ghana
Total Tarkwa Damang
Operating costs June 2011 (957.0) (735.5) (221.5)
March 2011 (1,011.4) (735.7) (275.7)
Year to date (1,968.4) (1,471.2) (497.2)
Capital June 2011 (466.9) (354.0) (112.9)
expenditure March 2011 (582.9) (395.9) (187.0)
Year to date (1,049.8) (749.9) (299.9)
Notional cash June 2011 193,019 193,689 190,868
expenditure March 2011 210,496 195,542 258,926
- R/kg Year to date 201,873 194,628 225,233
Notional cash June 2011 885 889 876
expenditure March 2011 938 871 1,154
- US$/oz Year to date 913 880 1,018
South
America
Region
Peru
Cerro
Corona Total
Operating costs June 2011 (254.7) (965.0)
March 2011 (288.1) (876.8)
Year to date (542.8) (1,841.8)
Capital June 2011 (105.5) (399.6)
expenditure March 2011 (117.0) (270.4)
Year to date (222.5) (670.0)
Notional cash June 2011 114,604 275,788
expenditure March 2011 120,494 232,887
- R/kg Year to date 117,648 254,385
Notional cash June 2011 526 1,265
expenditure March 2011 537 1,038
- US$/oz Year to date 532 1,150
Australasia Region Corporate
Australia
St
Ives Agnew
Operating costs June 2011 (734.9) (230.1) -
March 2011 (675.0) (201.8) -
Year to date (1,409.9) (431.9) -
Capital June 2011 (275.2) (124.4) (143.9)
expenditure March 2011 (165.8) (104.6) (103.4)
Year to date (441.0) (229.0) (247.3)
Notional cash June 2011 298,935 225,940 -
expenditure March 2011 224,393 259,881 -
- R/kg Year to date 259,739 240,502 -
Notional cash June 2011 1,371 1,037 -
expenditure March 2011 1,000 1,158 -
- US$/oz Year to date 1,174 1,087 -
## 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
Total
Mine
Operations
Operating Results Total
Ore milled/treated
(000 tonne)
- underground June 2011 3,036 2,451
March 2011 2,713 2,061
Year to date 5,749 4,512
- surface June 2011 12,151 1,957
March 2011 11,745 1,959
Year to date 23,896 3,916
- total June 2011 15,187 4,408
March 2011 14,458 4,020
Year to date 29,645 8,428
Yield (grams per tonne)
- underground June 2011 5.3 5.2
March 2011 5.4 5.6
Year to date 5.3 5.4
- surface June 2011 1.1 0.6
March 2011 1.2 0.6
Year to date 1.1 0.6
- combined June 2011 1.9 3.2
March 2011 2.0 3.2
Year to date 2.0 3.2
Gold produced (kilograms)
- underground June 2011 15,953 12,741
March 2011 14,750 11,534
Year to date 30,703 24,275
- surface June 2011 13,404 1,148
March 2011 13,896 1,250
Year to date 27,300 2,398
- total June 2011 29,357 13,889
March 2011 28,646 12,784
Year to date 58,003 26,673
Operating costs
(Rand per tonne)
- underground June 2011 1,130 1,176
March 2011 1,155 1,269
Year to date 1,142 1,218
- surface June 2011 150 98
March 2011 155 86
Year to date 153 92
- total June 2011 346 697
March 2011 343 692
Year to date 344 695
South Africa Region
South
Operating Results KDC Beatrix Deep#
Ore milled/treated
(000 tonne)
- underground June 2011 1,269 648 534
March 2011 1,092 499 470
Year to date 2,361 1,147 1,004
- surface June 2011 1,379 422 156
March 2011 1,442 409 108
Year to date 2,821 831 264
- total June 2011 2,648 1,070 690
March 2011 2,534 908 578
Year to date 5,182 1,978 1,268
Yield (grams per tonne)
- underground June 2011 6.0 4.5 5.3
March 2011 6.6 4.4 5.7
Year to date 6.3 4.4 5.5
- surface June 2011 0.6 0.3 0.9
March 2011 0.7 0.3 0.9
Year to date 0.7 0.3 0.9
- combined June 2011 3.2 2.8 3.4
March 2011 3.2 2.5 4.0
Year to date 3.2 2.7 3.7
Gold produced (kilograms)
- underground June 2011 7,609 2,902 2,230
March 2011 7,159 2,171 2,204
Year to date 14,768 5,073 4,434
- surface June 2011 866 146 136
March 2011 1,010 143 97
Year to date 1,876 289 233
- total June 2011 8,475 3,048 2,366
March 2011 8,169 2,314 2,301
Year to date 16,644 5,362 4,667
Operating costs
(Rand per tonne)
- underground June 2011 1,390 927 972
March 2011 1,453 1,052 1,070
Year to date 1,419 981 1,018
- surface June 2011 110 59 93
March 2011 93 60 90
Year to date 101 59 92
- total June 2011 723 584 773
March 2011 679 605 887
Year to date 702 594 825
West Africa Region
Ghana
Operating Results Total Tarkwa Damang
Ore milled/treated
(000 tonne)
- underground June 2011 - - -
March 2011 - - -
Year to date - - -
- surface June 2011 7,155 5,883 1,272
March 2011 7,053 5,803 1,250
Year to date 14,208 11,686 2,522
- total June 2011 7,155 5,883 1,272
March 2011 7,053 5,803 1,250
Year to date 14,208 11,686 2,522
Yield (grams per tonne)
- underground June 2011 - - -
March 2011 - - -
Year to date - - -
- surface June 2011 1.0 1.0 1.4
March 2011 1.1 1.0 1.4
Year to date 1.1 1.0 1.4
- combined June 2011 1.0 1.0 1.4
March 2011 1.1 1.0 1.4
Year to date 1.1 1.0 1.4
Gold produced (kilograms)
- underground June 2011 - - -
March 2011 - - -
Year to date - - -
- surface June 2011 7,377 5,625 1,752
March 2011 7,574 5,787 1,787
Year to date 14,951 11,412 3,539
- total June 2011 7,377 5,625 1,752
March 2011 7,574 5,787 1,787
Year to date 14,951 11,412 3,539
Operating costs
(Rand per tonne)
- underground June 2011 - - -
March 2011 - - -
Year to date - - -
- surface June 2011 134 125 174
March 2011 143 127 221
Year to date 139 126 197
- total June 2011 134 125 174
March 2011 143 127 221
Year to date 139 126 197
South America
Region
Peru
Cerro
Operating Results Corona Total
Ore milled/treated
(000 tonne)
- underground June 2011 - 585
March 2011 - 652
Year to date - 1,237
- surface June 2011 1,717 1,322
March 2011 1,582 1,151
Year to date 3,299 2,473
- total June 2011 1,717 1,907
March 2011 1,582 1,803
Year to date 3,299 3,710
Yield (grams per tonne)
- underground June 2011 - 5.5
March 2011 - 4.9
Year to date - 5.2
- surface June 2011 1.8 1.3
March 2011 2.1 1.5
Year to date 2.0 1.4
- combined June 2011 1.8 2.6
March 2011 2.1 2.7
Year to date 2.0 2.7
Gold produced (kilograms)
- underground June 2011 - 3,212
March 2011 - 3,216
Year to date - 6,428
- surface June 2011 3,143 1,736
March 2011 3,362 1,710
Year to date 6,505 3,446
- total June 2011 3,143 4,948
March 2011 3,362 4,926
Year to date 6,505 9,874
Operating costs
(Rand per tonne)
- underground June 2011 - 935
March 2011 - 796
Year to date - 861
- surface June 2011 148 316
March 2011 182 311
Year to date 165 314
- total June 2011 148 506
March 2011 182 486
Year to date 165 496
Australasia Region
Australia
Operating Results St Ives Agnew
Ore milled/treated
(000 tonne)
- underground June 2011 412 173
March 2011 501 151
Year to date 913 324
- surface June 2011 1,264 58
March 2011 1,118 33
Year to date 2,382 91
- total June 2011 1,676 231
March 2011 1,619 184
Year to date 3,295 415
Yield (grams per tonne)
- underground June 2011 4.2 8.6
March 2011 4.1 7.7
Year to date 4.1 8.2
- surface June 2011 1.3 1.5
March 2011 1.5 0.4
Year to date 1.4 1.1
- combined June 2011 2.0 6.8
March 2011 2.3 6.4
Year to date 2.2 6.6
Gold produced (kilograms)
- underground June 2011 1,732 1,480
March 2011 2,049 1,167
Year to date 3,781 2,647
- surface June 2011 1,647 89
March 2011 1,698 12
Year to date 3,345 101
- total June 2011 3,379 1,569
March 2011 3,747 1,179
Year to date 7,126 2,748
Operating costs
(Rand per tonne)
- underground June 2011 799 1,258
March 2011 661 1,242
Year to date 723 1,251
- surface June 2011 321 214
March 2011 308 430
Year to date 315 292
- total June 2011 438 996
March 2011 417 1,097
Year to date 428 1,041
# June quarter includes 115,000 tonnes (March quarter includes 83,000 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 June 2011 quarter
Carbon
Reef Leader Kloof Main VCR
Advanced (m) 4,728 185 1,232 5,596
Advanced on reef (m) 909 51 243 836
Sampled (m) 849 54 156 657
Channel width (cm) 79 90 76 110
Average value - (g/t) 21.8 30.7 9.4 23.4
- (cm.g/t) 1,716 2,769 717 2,578
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
KDC Year to date F2011
Carbon
Reef Leader Kloof Main VCR
Advanced (m) 9,385 392 2,332 11,177
Advanced on reef (m) 1,971 142 409 1,895
Sampled (m) 1,812 129 339 1,551
Channel width (cm) 73 97 96 109
Average value - (g/t) 24.7 22.7 7.4 26.2
- (cm.g/t) 1,793 2,192 713 2,847
Beatrix June 2011 quarter
Reef Beatrix Kalkoenkrans
Advanced (m) 4,953 1,729
Advanced on reef (m) 1,371 302
Sampled (m) 1,431 288
Channel width (cm) 104 129
Average value - (g/t) 11.7 14.2
- (cm.g/t) 1,221 1,840
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
Beatrix Year to date F2011
Reef Beatrix Kalkoenkrans
Advanced (m) 8,539 3,278
Advanced on reef (m) 2,551 617
Sampled (m) 2,301 603
Channel width (cm) 104 103
Average value - (g/t) 11.3 14.7
- (cm.g/t) 1,172 1,512
South Deep June 2011 quarter March 2011 quarter Year to date F2011
Reef Elsburgs(1,2) Elsburgs(1,2) Elsburgs(1,2)
Main Advanced (m) 3,063 2,842 5,905
- Main above 95
level (m) 1,890 1,699 3,589
- Main below 95
level (m) 1,173 1,143 2,316
Advanced on reef (m) 1,511 1,537 3,048
Square metres
effectively
de-stressed (m2) 1,777 1,316 3,093
- Reserve value
de-stressed (g/t) 7.1 7.2 7.2
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
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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
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United Kingdom
Tel: (+44)(20) 7499 3916
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BNY Mellon Shareowner Services
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Gold Fields Limited
Incorporated in the Republic of South Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN - ZAE 000018123
Investor Enquiries
Zakira Amra
Tel: (+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
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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
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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
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The Registry
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plus network extras, lines are open
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Website
http://www.goldfields.co.za
Sponsor:
J.P. Morgan Equities Limited
Listings
JSE / NYSE / NASDAQ Dubai: GFI
NYX: GFLB
SWX: 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 events or circumstances after the
date of this document or to reflect the occurrence of unanticipated events.
Directors
M A Ramphele (Chair)
N J Holland * (Chief Executive Officer)
PA Schmidt (Chief Financial Officer)
K Ansah#
CA Carolus
R Danino **
A R Hill!
J L Lazaro
*
R P Menell
M S Moloko
D N Murray
D M J Ncube
R L Pennant-Rea *
G M Wilson
* British
** Peruvian
#Ghanaian
Independent Director
!Canadian
Non-independent Director
*Filipino
Date: 11/08/2011 08:01:44 Supplied by www.sharenet.co.za
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