Wrap Text
GFI - Gold Fields Limited - Q3 quarter ended 30 September 2011 - record
quarterly earnings of R2.1 Billion
Gold Fields Limited
Incorporated in the Republic of South Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN - ZAE 000018123
Q3 Quarter ended 30 September 2011
RECORD QUARTERLY EARNINGS OF R2.1 BILLION
JOHANNESBURG. 10 November 2011, Gold Fields Limited (NYSE & JSE: GFI)
today announced record net earnings for the September quarter of R2,055
million compared with R1,267 million in the June quarter and earnings of
R701 million in the September 2010 quarter. In US dollar terms net
earnings for the September quarter were US$293 million, compared with
US$186 million in the June quarter and earnings of US$95 million in the
September 2010 quarter.
September 2011 quarter salient features:
- Group attributable equivalent gold production of 900,000 ounces, 3 per
cent higher than the June quarter;
- Operating margin increased from 47 per cent to 51 per cent and NCE
margin from 21 per cent to 29 per cent;
- Loans repaid of US$195 million funded from operating activities; and
- Second down payment of US$66 million made in the Far Southeast project
in the Philippines, on positive drilling results.
Statement by Nick Holland, Chief Executive Officer of Gold Fields:
"Gold Fields has demonstrated its ability to translate the rising gold
price to the bottom line with a 62 per cent increase in net earnings to
R2,055 million during the September quarter. Over the same period the
gold price increased by 14 per cent in US dollar terms and 18 per cent in
Rand terms.
Attributable production for the Group increased by 3 per cent from
872,000 gold equivalent ounces in the June quarter to 900,000 gold
equivalent ounces in the September quarter. This improvement was achieved
despite the five day wage related industrial action at our South African
operations. The acquisition of non-controlling interests in our Ghanaian
operations contributed to the higher attributable production figure. It
also enhanced the geographical diversification of our portfolio, with
about 50 per cent of production now derived from our international
operations. Sound cost control remains in place across the Group with the
on-going Business Process Re-engineering initiatives delivering
satisfactory results. As a consequence, net operating cost in the South
Africa region was only 2 per cent higher than the June quarter despite
the annual wage increase effective from 1 July, as well as two months of
significantly higher winter electricity tariffs in South Africa.
The notional cash expenditure (NCE) margin for the Group increased to 29
per cent in the September quarter, well ahead of the June quarter`s 21
per cent and the Group`s long-term target of 25 per cent. The NCE margin
in the South Africa region improved to 16 per cent in the September
quarter from 7 per cent in the June quarter. Excluding the impact of the
South Deep project which is in a build-up phase and not yet generating
positive NCE margins, the South Africa region`s NCE margin was 24 per
cent, up from 15 per cent in the June quarter. In Australasia, the NCE
margin increased from 16 per cent in the June quarter to 24 per cent in
the September quarter. In West Africa, the NCE margin for the September
quarter was 46 per cent and in South America 58 per cent, both similar to
the June quarter.
Safety remains our most important operational challenge. Despite a
decline of 25 per cent in the Group`s fatal injury frequency rate during
the quarter, unfortunately we still had six fatalities at our South
African operations. Although we have achieved an encouraging improvement
in the Group safety over the past three years there has been limited
progress in the past 12 months despite our best efforts. We maintain our
commitment to safety and will continue to focus on further improvements.
During the September quarter significant progress was made in support of
our growth strategy to achieve 5 million quality gold equivalent ounces,
in production or in development, by the end of 2015, while at the same
time diversifying our production base across the globe. These strategies
are primarily driven through our project pipeline.
At Chucapaca in Peru, we announced an updated indicated and inferred
mineral resource of 7.6 million gold equivalent ounces for the Canahuire
deposit, a 35 per cent increase over the initial resource of 5.6 million
ounces declared in May 2010. All drilling for the feasibility study was
completed during October 2011 and we aim to finalise the feasibility
study and submit the Environmental Impact Assessment (EIA) application by
mid-2012.
At the Far Southeast project in the Philippines, the initial proof-of
concept drill results have confirmed our initial understanding of the
scale and grade of the deposit and demonstrated significant upside
potential at depth and in all lateral directions. On the back of positive
drilling results we have made the second down payment of US$66 million in
terms of the option agreements to acquire a 60 per cent interest in the
project. We have eight drill rigs on site and plan to deliver a first
resource during the second half of 2012.
At the Arctic Platinum project in Finland, we have completed the two 50
tonne pilot plant test programmes, which largely confirmed the previous
bench scale test work indicating an improvement of up to 25 per cent in
metallurgical recoveries. The current focus is on consolidating these
results in a pre-feasibility study which is underway.
At the Yanfolila project in southern Mali, we have completed a scoping
study which indicates that the project requires a minimum 1.5 million
ounces resource base to satisfy project thresholds. Exploration drilling
to expand the resource base is scheduled to start in the December
quarter.
In South Africa, the South Deep project continues to progress and we
anticipate completing the key infrastructure projects, being the
ventilation shaft and the expansion to the processing plant by the end of
2012.
At the Damang open pit expansion project in Ghana, we are targeting a 4
million ounce open pit mining resource to support a potential doubling of
production. Work on this project is continuing apace."
Stock data
Number of shares in issue
- at end September 2011 723,310,693
- average for the quarter 723,159,600
Free Float 100 per cent
ADR Ratio 1:1
Bloomberg / Reuters GFISJ / GFLJ.J
JSE Limited - (GFI)
Range - Quarter ZAR95.80 - ZAR141.01
Average Volume - Quarter 2,577,103 shares / day
NYSE - (GFI)
Range - Quarter US$14.25 - US$17.89
Average Volume - Quarter 4,950,355 shares / day
SOUTH AFRICAN RAND
Key statistics
Nine months to
Sept Sept Sept
2010 2011 2010
Gold produced* 80,851 80,934 28,232
Total cash cost 166,772 179,768 164,898
Notional cash expenditure 238,522 258,884 238,348
Tonnes milled/treated 43,636 44,415 14,510
Revenue 281,418 341,045 289,329
Operating costs 345 353 357
Operating profit 10,229 14,203 3,921
Operating margin 41 48 43
NCE margin 15 24 18
1,917 4,422 701
Net earnings
271 612 99
2,030 4,426 699
Headline earnings
287 613 99
Net earnings excluding
2,282 4,590 1,016
gains and losses on foreign
exchange, financial
instruments, non-recurring
323 635 144
items and share of
profit/(loss) of associates
after royalties and taxation
Key statistics
Quarter
June Sept
2011 2011
Gold produced* 27,118 28,008 kg
Total cash cost 177,934 192,997 R/kg
Notional cash expenditure 256,692 274,615 R/kg
Tonnes milled/treated 15,187 14,770 000
Revenue 326,206 385,684 R/kg
Operating costs 346 369 R/tonne
Operating profit 4,457 5,655 Rm
Operating margin 47 51 %
NCE margin 21 29 %
1,267 2,055 Rm
Net earnings
175 284 SA c.p.s.
1,270 2,054 Rm
Headline earnings
176 284 SA c.p.s.
Net earnings excluding
1,326 2,111 Rm
gains and losses on foreign
exchange, financial
instruments, non-recurring
184 291 SA c.p.s.
items and share of
profit/(loss) of associates
after royalties and taxation
UNITED STATES DOLLARS
Key statistics
Quarter
Sept June
2011 2011
Gold produced* oz (000) 900 872
Total cash cost $/oz 851 816
Notional cash expenditure $/oz 1,212 1,178
Tonnes milled/treated 000 14,770 15,187
Revenue $/oz 1,702 1,496
Operating costs $/tonne 52 51
Operating profit $m 804 656
Operating margin % 51 47
NCE margin % 29 21
$m 293 186
Net earnings
US c.p.s. 40 26
$m 293 187
Headline earnings
US c.p.s. 40 26
Net earnings excluding
$m 301 195
gains and losses on foreign
exchange, financial
instruments, non-recurring
US c.p.s. 42 27
items and share of
profit/(loss) of associates
after royalties and taxation
Nine months to
Sept Sept Sept
2010 2011 2010
Gold produced* 908 2,602 2,599
Total cash cost 697 806 695
Notional cash expenditure 1,007 1,160 994
Tonnes milled/treated 14,510 44,415 43,636
Revenue 1,223 1,528 1,173
Operating costs 48 51 46
Operating profit 533 2,047 1,372
Operating margin 43 48 41
NCE margin 18 24 15
95 637 258
Net earnings
13 88 36
95 638 273
Headline earnings
13 88 39
Net earnings excluding
138 661 307
gains and losses on foreign
exchange, financial
instruments, non-recurring
20 92 44
items and share of
profit/(loss) of associates
after royalties and taxation
* All of the key statistics given above are managed figures, except for
gold produced which is attributable equivalent production.
All operations are wholly owned except for Tarkwa and Damang in Ghana
(90.0 per cent) and Cerro Corona in Peru (98.5 per cent).
Gold produced (and sales) throughout this report includes copper gold
equivalents of approximately 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.
Safety
The Group`s fatal injury frequency rate improved from 0.20 in the June
quarter to 0.15 in the September quarter. Despite this improvement six
fatalities occurred during the quarter at the South Africa region. Two
fatalities were seismic-related in one accident, two fatalities were due
to gravity falls of ground, with the remaining two fatalities the result
of a tramming accident and drilling into a misfire.
Together with the improved fatal injury frequency rate there were other
significant achievements during the quarter. KDC once again achieved one
million fatality free shifts, and Agnew and Damang reported zero lost day
injuries. The lost day injury frequency rate, however, regressed from
4.86 to 4.95 and the days lost frequency rate regressed from 201 to 223.
The strategy of engineering out the safety-related risks in the Group and
ensuring compliance to standards and codes of practice continues to be
core to improving the safety environment.
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 September 2011 compared with quarter
ended 30 June 2011
Revenue
Attributable gold production increased by 3 per cent from 872,000 ounces
in the June quarter to 900,000 ounces in the September quarter. At the
South African operations, production decreased by 4 per cent from 447,000
ounces to 428,000 ounces. This decrease in production was mainly due to a
six day strike during the quarter arising from wage negotiations.
Attributable gold production at the West African operations increased by
26 per cent from 168,000 ounces to 211,000 ounces. Most of this increase
was a direct result of the buy-out of the non-controlling interest with
effect from 25 June, which increased the Group holding from 71.1 per cent
in the June quarter to 90.0 per cent in the September quarter.
Attributable equivalent gold production at Cerro Corona in Peru decreased
by 6 per cent, from 98,000 ounces to 92,000 ounces, mainly due to the
lower copper/gold price ratio. At the Australian operations, gold
production increased by 6 per cent from 159,000 ounces to 169,000 ounces
due to improved underground grades mined and processed.
At the South Africa region, gold production at KDC increased by 2 per
cent from 272,500 ounces (8,475 kilograms) in the June quarter to 279,200
ounces (8,684 kilograms) in the September quarter. This increase in
production was achieved despite shifts lost due to the wage-related
industrial action and safety-related stoppages.
Resultant production losses were offset by an increase in surface tonnes
milled and an increase in the underground and surface yields.
At Beatrix, gold production decreased by 14 per cent from 98,000 ounces
(3,048 kilograms) to 84,700 ounces (2,636 kilograms) and at South Deep,
gold production decreased by 15 per cent from 76,100 ounces (2,366
kilograms) to 64,400 ounces (2,003 kilograms), both due to the industrial
action which resulted in lower volumes mined and processed.
At the West Africa region, managed gold production at Tarkwa was steady
at 180,000 ounces despite excessive rainfall which disrupted operations
and the processing of a harder blend of ore this quarter. At Damang, gold
production
decreased marginally, from 56,300 ounces to 54,300 ounces.
At the South America region, equivalent gold production at Cerro Corona
decreased by 7 per cent from 101,000 equivalent ounces in the June
quarter to 93,900 equivalent ounces in the September quarter due to the
lower copper prices relative to the gold prices.
At the Australasia region, St Ives` gold production increased by 6 per
cent from 108,700 ounces to 115,000 ounces due to an increase in
underground grades and increased mill throughput. At Agnew, gold
production increased by 7 per cent from 50,400 ounces to 53,700 ounces.
Lower underground volumes mined and processed were offset by increased
yields and an increase in production from Songvang.
The average quarterly US dollar gold price achieved increased from
US$1,496 per ounce in the June quarter to US$1,702 per ounce in the
September quarter. The average Rand/US dollar exchange rate of R7.05 was
4 per cent weaker than the June quarter average of R6.78, while the
average Australian dollar exchange rate was similar when compared with
the US dollar at A$1.00 = US$1.06. The resultant rand gold price
increased by 18 per cent from R326,206 per kilogram to R385,684 per
kilogram and the Australian dollar gold price increased by 15 per cent
from A$1,420 per ounce to A$1,638 per ounce.
Revenue increased by 15 per cent from R9,581 million (US$1,411 million)
in the June quarter to R11,060 million (US$1,570 million) in the
September quarter.
Operating costs
Net operating costs increased by 5 per cent from R5,124 million (US$755
million) in the June quarter to R5,404 million (US$766 million) in the
September quarter. Total cash cost increased from R177,934 per kilogram
(US$816 per ounce) to R192,997 per kilogram (US$851 per ounce), an
increase of 8 per cent in rand terms and 4 per cent in dollar terms. The
increase in the total cash cost was due to an increase in the royalties
due to the higher gold price, the annual wage increase in South Africa
effective from 1 July 2011 and higher electricity winter tariffs in South
Africa. Refer to the total cash cost reconciliation on page 23 for more
detail.
At the South Africa region, net operating costs increased by 2 per cent
from R3,074 million (US$453 million) to R3,131 million (US$444 million).
This increase was due to an extra month of significantly higher winter
electricity tariffs (two months compared with one month in the previous
quarter) and wage increases averaging 10 per cent of basic pay, effective
from 1 July 2011. These cost increases were partly offset by ongoing
savings from the Business Process Re-engineering (BPR) initiatives and a
decrease in costs over the period of industrial action due to the no-work
no-pay rule. The net result of the lower production and increase in costs
was an increase in total cash cost of 7 per cent from R220,261 per
kilogram (US$1,010 per ounce) to R235,780 per kilogram (US$1,040 per
ounce).
At the West Africa region, net operating costs increased from US$122
million (R825 million) to US$132 million (R931 million) due to a lower
gold-in-process credit in the September quarter, together with increased
power and fuel costs. Total cash cost at the West African operations
increased from US$564 per ounce in the June quarter to US$617 per ounce
in the September quarter.
At Cerro Corona in South America, net operating costs increased from
US$38 million (R258 million) to US$41 million (R289 million).
This was mainly due to an increase in the workers` statutory
participation in profits. Total cash cost increased from US$408 per ounce
in the June quarter to US$494 per ounce in the September quarter due to
the lower equivalent production and the increase in costs.
At the Australasia region, net operating costs increased from A$135
million (R967 million) to A$142 million (R1,053 million). This was mainly
due to increased underground mining volumes and increased mill throughput
at St Ives together with increased production from the Songvang open pit
at Agnew. Total cash cost for the region decreased from A$858 per ounce
(US$909 per ounce) to A$844 per ounce (US$891 per ounce) due to the 6 per
cent increase in gold output.
Operating margin
The net effect of the changes in revenue and costs, after taking into
account gold-in-process movements, was a 27 per cent increase in
operating profit from R4,457 million (US$656 million) in the June quarter
to R5,655 million (US$804 million) in the September quarter.
The Group operating margin at 51 per cent was 4 percentage points higher
than the June quarter. The operating margin at the South African
operations increased from 33 per cent to 40 per cent. At the West African
operations the operating margin increased from 66 per cent to 67 per
cent. At Cerro Corona in South America, the operating margin decreased
from 73 per cent to 69 per cent and at the Australian operations the
operational margin increased from 40 per cent to 49 per cent.
Amortisation
Amortisation increased from R1,277 million (US$188 million) in the June
quarter to R1,377 million (US$195 million) in the September quarter
mainly due to an increase at St Ives and to a lesser extent at Damang.
The increase at St Ives was due to an increase in underground volumes
mined, mainly at Athena, replacing open pit ounces which carried a lower
amortisation rate.
Other
Net interest paid increased from R32 million (US$5 million) in the June
quarter to R69 million (US$10 million) in the September quarter. This
increase was mainly due to interest paid for a full quarter on loans to
fund the purchase of the non-controlling interest in Peru and Ghana. In
the September quarter interest paid of R120 million (US$17 million) was
partly offset by interest received of R39 million (US$6 million) and
interest capitalised of R12 million (US$1 million). This compares with
interest paid of R88 million (US$13 million), partly offset by interest
received of R39 million (US$6 million) and interest capitalised of R17
million (US$2 million) in the June quarter.
The share of profit of associates after taxation of R5 million
(US$1million) in the September quarter compared with R1 million (US$nil
million) in the June quarter. These profits related mainly to the Group`s
interest in Rand Refinery.
The gain on foreign exchange of R72 million (US$10 million) in the
September quarter compares with a loss of R19 million (US$3 million) in
the June quarter. These gains and losses relate to the conversion of
offshore cash holdings into their functional currencies, together with a
gain of R48 million (US$7 million) on inter-company loans in the
September quarter.
The loss on financial instruments was R0.3 million (US$nil million) in
the September quarter, compared with a gain of R25 million (US$4 million)
in the June quarter. The gain in the June quarter mainly related to the
receipt of 15 million shares in Timpetra Resources, in exchange for
Central Victoria tenements, an Australian exploration project.
Share-based payments of R122 million (US$17 million) were similar to the
June quarter.
Other costs decreased from R85 million (US$13 million) in the June
quarter to R74 million (US$11 million) in the September quarter.
Exploration
Exploration expenditure decreased from R214 million (US$31 million) in
the June quarter to R189 million (US$27 million) in the September quarter
mainly due to project timing. 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 increased from R17 million (US$3
million) in the June quarter to R48 million (US$7 million) in the
September quarter mainly due to timing of expenditure at the Far
Southeast (FSE) project in the Philippines.
Non-recurring items
The non-recurring items of R167 million (US$24 million) in the September
quarter and the R101 million (US$15 million) in the June quarter were
mainly due to voluntary separation packages, business process re-
engineering and restructuring costs at all our operations.
Royalties
Government royalties increased from R236 million (US$35 million) in the
June quarter to R305 million (US$43 million) in the September quarter.
The higher royalty in the September quarter was mainly due to the
increased revenue on which royalties are calculated.
Taxation
Taxation for the September quarter amounted to R1,223 million (US$174
million) compared with R866 million (US$128 million) in the June quarter,
which is in line with the higher taxable income. Normal taxation
increased from R521 million (US$77 million) in the June quarter to R841
million (US$120 million). Deferred taxation increased from R346 million
(US$51 million) in the June quarter to R382 million (US$54 million) in
the September quarter.
Earnings
Net earnings attributable to owners of the parent amounted to R2,055
million (US$293 million) or 284 SA cents per share (US$0.40 per share) in
the September quarter, compared with earnings of R1,267 million (US$186
million) or 175 SA cents per share (US$0.26 per share) in the June
quarter.
Headline earnings i.e. earnings excluding the after tax effect of asset
sales, impairments and the sale of investments, amounted to R2,054
million (US$293 million) or 284 SA cents per share (US$0.40 per share),
compared with earnings of R1,270 million (US$187 million) or 176 SA cents
per share (US$0.26 per share) in the June quarter.
Earnings excluding non-recurring items as well as gains and losses on
foreign exchange, financial instruments and gains or losses of associates
after royalties and taxation amounted to R2,111 million (US$301 million)
or 291 SA cents per share (US$0.42 per share), compared with earnings of
R1,326 million (US$195 million) or 184 SA cents per share (US$0.27 per
share) reported in the June quarter.
Cash flow
Cash inflow from operating activities for the quarter amounted to R5,057
million (US$717 million), compared with R2,954 million (US$436 million)
in the June quarter mainly as a result of the higher earnings and timing
of royalty and taxation payments.
In the September quarter dividends of R724 million (US$102 million) were
paid to owners of the parent and R147 million (US$21 million) paid to non-
controlling interest holders at Tarkwa, Damang and Cerro Corona. In the
June quarter dividends of R7 million (US$1 million) were paid to non-
controlling interest holders at Cerro Corona.
Capital expenditure increased from R2,285 million (US$336 million) in the
June quarter to R2,607 million (US$370 million) in the September quarter.
At the South Africa region, capital expenditure increased from R1,169
million (US$172 million) in the June quarter to R1,266 million (US$180
million) in the September quarter mainly due to an increase in ore
reserve development (ORD) and infrastructure upgrades. Capital
expenditure at South Deep amounted to R492 million (US$70 million) in the
September quarter compared with R472 million (US$69 million) in the June
quarter, with the majority of the expenditure on development and
equipping the mine to achieve its build-up plan. Expenditure on ORD at
KDC increased from R436 million to R454 million and at Beatrix increased
from R101 million to R103 million quarter on quarter.
At the West Africa region, capital expenditure increased from US$69
million to US$73 million due to additional pre-stripping and increased
expenditure on mining fleet at Damang. This was partly offset by the
lower expenditure on mining fleet at Tarkwa, with the requirements for
2011 now complete.
In South America, at Cerro Corona, capital expenditure was similar to the
June quarter at US$17 million.
At the Australasia region, capital expenditure increased from A$56
million to A$73 million. St Ives increased from A$39 million to A$52
million, with the majority of the increased expenditure resulting from
the pre-strip at the Formidable pit, Mars/Minotaur link and Diana open
pit. At Agnew, capital expenditure increased from A$17 million to A$20
million, with the increased expenditure on a new ventilation system at
the Waroonga complex.
Investing activities included a second payment of R535 million (US$66
million) for the FSE project. This is in line with the terms of the
option agreements to acquire a 60 per cent interest in the undeveloped
gold-copper deposit in the Philippines. The option agreements were
entered into with Lepanto Consolidated Mining Company (Lepanto), a
company listed in the Philippines, and Liberty Express Assets, a private
holding company.
Net cash outflow from financing activities in the September quarter
amounted to R1.4 billion (US$185 million) compared with a net cash inflow
of R2.8 billion (US$404 million) in the June quarter. The net cash
outflow in the September quarter was mainly due to the repayment of an
offshore facility of R1,389 million (US$180 million).
The net cash outflow for the September quarter of R406 million (US$30
million) compared with an outflow of R2,288 million (US$347 million) in
the June quarter. After accounting for a positive translation adjustment
of R496 million (US$53 million negative) on offshore cash balances, the
net cash inflow for the September quarter was R90 million (US$83 million
negative). The cash balance at the end of September was R4,435 million
(US$548 million) compared with R4,345 million (US$631 million) at the end
of June.
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 the Group`s share of 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 the free cash flow available to pay taxation, interest,
greenfields exploration, pre-feasibility projects and dividends.
The NCE margin is defined as the difference between revenue per ounce and
NCE per ounce expressed as a percentage.
The Group NCE for the September quarter amounted to R274,615 per kilogram
(US$1,212 per ounce) compared with R256,692 per kilogram (US$1,178 per
ounce) in the June quarter. The NCE margin for the Group increased from
21 per cent to 29 per cent, driven by the higher gold price and sound
cost control.
At the South Africa region, NCE per kilogram increased from R305,501 per
kilogram (US$1,401 per ounce) to R330,023 per kilogram (US$1,456 per
ounce). The NCE margin of 16 per cent in the September quarter compares
with 7 per cent in the June quarter.
The higher margin was due to the higher gold price, partially offset by
the increase in operating costs and higher capital expenditure. NCE
excluding the funding of South Deep increased from R280,986 per kilogram
(US$1,289 per ounce) in the June quarter to R296,343 per kilogram
(US$1,307 per ounce) in the September quarter. The NCE margin excluding
South Deep was 24 per cent in the September quarter compared with 15 per
cent in the June quarter.
At the West Africa region, NCE per ounce increased from US$885 per ounce
to US$924 per ounce, while the NCE margin, driven by the higher gold
price, increased from 41 per cent to 46 per cent.
At the South America region, NCE per ounce increased from US$526 per
ounce in the June quarter to US$615 per ounce in the September quarter
due to the increased operating costs together with the decrease in
production. Despite decreasing from 62 per cent to 58 per cent the NCE
margin at Cerro Corona remains the highest in the Group.
At the Australasia region, NCE per ounce increased from A$1,195 per ounce
(US$1,265 per ounce) in the June quarter to A$1,238 per ounce (US$1,307
per ounce) in the September quarter due to increased operating costs and
increased capital expenditure. The NCE margin, however, increased from 16
per cent in the June quarter to 24 per cent in the September quarter due
to the higher gold price.
Balance sheet
The cash balance decreased from R5,464 million (US$810 million) at the
end of the December quarter to R4,435 million (US$548 million) at the end
of September. This decrease was mainly due to partly funding the buy-out
of a portion of the non-controlling interest holders in Gold Fields La
Cima in Peru and IamGold`s 18.9 per cent indirect holding in Tarkwa and
Damang in Ghana.
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 R11,096 million (US$1,370 million) by the end of
September. This increase in borrowings was largely to fund the buy-out of
a portion of the non-controlling interest holders in Gold Fields La Cima
and Ghana during the year which amounted to approximately R7.1 billion
(US$1,049 million), capital expenditure of R7.0 billion (US$1,003
million), dividend payments of R1.4 billion (US$206 million) and R0.5
billion (US$66 million) on the second instalment of the FSE project
option, together with exchange rate movements of R1.8 billion. These
payments were partly offset by cash generated from operating activities
of R10.8 billion (US$1,550 million).
Operational review
Cost and revenue optimisation initiatives through Business Process Re-
engineering (BPR)
BPR commenced during the second half of calendar 2010 and is an ongoing
business initiative. BPR involves a review of the mines` operational
production processes and associated cost structures from the stope to the
mill. The objective is to introduce a new business blueprint, together
with an appropriate organisational structure, which supports sustainable
gold output at an NCE margin of 20 per cent in the short to medium term
and 25 per cent in the long-term.
South Africa region
The BPR underpins the suite of M projects which were established during
financial 2008. The BPR will effectively replace the M suite of projects
by the end of financial 2011.
BPR - Stoping full potential (Project 1M)
Project 1M is a productivity initiative with the aim of improving quality
mining volumes by increasing the face advance by between 5 and 10 per
cent per annum. The BPR Stoping full potential project has effectively
replaced project 1M at KDC. It aims to enable the delivery of full
potential at every workface by introducing standardised reporting and
practices, implementing effective production management and control
systems to enable teams to manage the business more effectively. In
effect, addressing advance per blast to drive quality-volume and removing
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.
A programme management office was established to steer the project,
monitor progress and develop solutions. The programme consists of 10 key
initiatives:
Safety.
- Develop new processes and systems to monitor and manage safe
production, as well as interventions focused on changing people
behaviour.
- Target area process. Focus on creating increased visibility of the
workplace, with improved actions to enable a quality blast.
- Advance per blast. Focus on behaviour, practices and training to
improve quality rock breakage.
- Front-line labour management. Ensure daily labour availability with the
right skills mix.
- Monthly planning. Enhance current protocol by way of improved reports
and standardisation across the operations.
- Panel/face-length availability. Redesign reports, create improved
visibility and actions to improve the face-length availability.
- Art of cleaning. Focus on training the front-line workers and first-
line supervision to effectively clean a blasted panel.
- Cost management. Adherence to labour standards and norms as well as the
effective use of utilities.
- Leadership training. Enhance skills.
- Communication and change. Drive key messages both up and down the
organisation, focus on the key objectives and targets of the business.
The programme is on track, and crew performance has been stabilised.
BPR - Developing full potential (Project 2M)
The BPR full potential development project will be fully implemented by
year end and replaces project 2M, which is a technology initiative aimed
at mechanising all flat-end development (i.e. development on the
horizontal plane) at the long-life shafts of KDC and Beatrix. South Deep
is already a fully mechanised mine. The aim of the project is to improve
safety and productivity, reduce development costs and increase ore
reserve flexibility through higher monthly development advance rates.
Ninety one per cent of flat-end development metres advanced at long-life
shafts were achieved by mechanised means.
NCE full potential (Project 3M)
The BPR NCE full potential project focuses on all categories of
expenditure and replaces project 3M. BPR aims to mitigate as much of the
anticipated mining inflation increases as possible. Savings since this
initiative started in mid-2010 amount to R353 million, of which R59
million was achieved in the September quarter.
The second phase of the project is currently being incorporated into the
2012 operational plans, targeting cost reductions of between R500 million
(US$62 million) and R1.0 billion (US$123 million) for the South Africa
mines.
These cost saving initiatives will be achieved through various programmes
which include productivity improvement initiatives, continued
optimisation of staff structures and complements, a reduction in non-
specialised contractors, enhanced supply chain management and power
consumption reduction initiatives.
Project 4M
Project 4M focuses on the Mine Health and Safety Council (MHSC)
milestones agreed at a tripartite health and safety summit on 15 June
2003, comprising representatives from Government, organised labour and
mining companies. The focus is on achieving set occupational health and
safety targets and milestones over a 10-year period. The commitment was
driven by the need to achieve greater improvements in occupational health
and safety in the mining industry.
One of the milestone targets is that no machine or piece of equipment may
generate a sound pressure level in excess of 110dB (A) after December
2013. In order to achieve this target the company is focusing on reducing
the noise
at source.
The number of measurements expressed as a percentage of noise
measurements of machinery and equipment emitting noise in excess of 110dB
(A) is currently 0.8 per cent. Most of the sound pressures exceeding
110dB (A) is where two or more rockdrill machines are drilling in a panel
simultaneously. Silencing of equipment is ongoing and each intervention
is project managed.
In order to reduce dust exposure targets the company continuously refines
interventions, which include:
- Building health rooms at each of the mines training centres to assist
with the coaching of employees on potential exposures and wearing of
protective instruments.
- The use of foggers to trap dust particles liberated from tipping
points. The foggers are placed in intake airways to prevent dust from
entering the main air stream.
- Footwall treatment to bind dust onto the footwall and prevent it from
being released into the intake airways; and
- The analysis of individual filters to assist in determining exposure.
West Africa region
Tarkwa
Continued consolidation of several productivity, cost saving and
efficiency initiatives, has resulted in cost savings of US$14 million for
the year to date of which US$4 million was achieved this quarter.
As identified in the previous quarter, North heap leach recovery and
mining volumes were the focus areas in the September quarter. The removal
of bottlenecks at the North heap leach has resulted in a 10 per cent
improvement in gold output from heap leaching since the March quarter.
This was mainly due to the installation of three new large tertiary
crushers which were commissioned during May. Insofar as mining operations
are concerned dump truck efficiency has improved, resulting in a 6 per
cent improvement in utilisation. This increased utilisation did not
result in an increase in mining volumes as truck availability was
hampered by the excessive rainfall during the quarter.
Focus for the December quarter will be directed towards mining
performance, with the aim of realising additional mined tonnes.
Utilisation improvements will be maintained with increased focus on
productivity and equipment availability of the load and haul fleet.
Damang
Focus during the quarter was on maximising the benefits realised on the
conversion from contractor to owner operation and owner maintenance. To
date, benefits of US$18 million have been achieved, of which US$7 million
was realised in the September quarter.
Phase 2 of the BPR continued during the September quarter, with the focus
on mining and processing efficiencies. To date, satisfactory improvements
in the use of mining equipment availabilities have been recorded.
In the December quarter we will continue to focus on mining and
processing efficiencies. Additional opportunities to be pursued will
include improving the mine call factor through the introduction of the
blast movement monitoring system, and the introduction of an additional
mining shift to maximise the use of the mining fleet.
Australasia region
St Ives
At the end of July, St Ives transitioned from an underground mining
contractor to owner operator for production at the Argo and Cave Rocks
mines. This has allowed for an elimination of contractor margins and for
greater control of mining activities. Savings of over A$1 million per
month have been realised in the first two months, with significant
opportunities for further improvements identified. Development remains
with the contractor and an improved performance has resulted from this
sole focus.
The heap leach operation has had a step change in throughput levels. This
was achieved through the installation and commissioning of a diverter
gate to automatically discharge all magnetic material which previously
stopped production until a manual inspection and restart occurred. The
diverter gate transfers any detected material to a bunded area, allowing
the flow of ore to continue. Commissioned late in the September quarter,
the benefits will only be fully realised from the December quarter.
The Lefroy mill also realised increases in ore production volumes through
improved coarse ore stockpile management during planned shutdowns of the
primary crusher. Previously throughput dropped by approximately 10 per
cent during fortnightly preventative maintenance shutdowns due to
excessive coarse ore feed during these events. The manual loading of fine
material to restore optimum blends during these periods has resulted in a
55 per cent reduction of this lost throughput.
During the December quarter focus will be on completing a centralised
data room at Lefroy and the transition to remote bogging from surface at
Athena, which is expected to realise additional ore loading capacity.
Agnew
During the September quarter, BPR focused primarily on the underground
operations. Emphasis was placed on the delivery of key projects,
optimisation of the mine planning process, refinement of operational data
collection and reporting systems. Short-term interval control remains a
key focus area. This ensures supervisors closely monitor production rates
during each shift, quickly reacting to any element of the process which
could negatively impact production. Specific focus has been on trucking
efficiency.
The key production metrics are tracked and displayed at the Waroonga
information centre to ensure all members of the production team are aware
of the operational performance on a day to day basis. The focus and
involvement of the entire production team has assisted in delivering more
than 50,000 ounces during the September quarter.
Additional BPR initiatives will be introduced in 2012 to maintain the
momentum that has been built in 2011. Performance monitoring and
improvement initiatives together with training and deployment to the
entire underground production team are part of maintaining the drive into
2012.
South Africa region
KDC
September June
2011 2011
Gold produced - 000`oz 279.2 272.5
- kg 8,684 8,475
Yield - underground - g/t 6.2 6.0
- combined - g/t 3.1 3.2
Total cash cost - R/kg 227,395 225,133
- US$/oz 1,003 1,033
Notional cash expenditure - R/kg 295,164 290,289
- US$/oz 1,302 1,332
NCE margin -% 24 11
Gold production increased from 272,500 ounces (8,475 kilograms) in the
June quarter to 279,200 ounces (8,684 kilograms) in the September
quarter. This increase was achieved despite the lost production due to
the wage-related industrial action, safety stoppages and interventions
following seismic-related events.
Underground tonnes milled decreased from 1.27 million tonnes in the June
quarter to 1.22 million tonnes in the September quarter, offset by an
increase in yield from 6.0 grams per tonne to 6.2 grams per tonne. This
increase was largely due to higher grades encountered on the western
section of the mine as well as an improved recovery. Surface tonnes
milled increased from 1.38 million tonnes to 1.58 million tonnes and the
surface yield increased from 0.6 grams per tonne to 0.7 grams per tonne.
Main development decreased by 11 per cent from 11,740 metres to 10,460
metres, while on-reef development decreased from 2,040 metres to 1,475
metres. This decrease was due to the industrial action and the safety-
related stoppages. The average development value increased from 1,991
centimetre grams per tonne to 2,150 centimetre grams per tonne.
Operating costs increased from R1,915 million (US$282 million) to R1,952
million (US$277 million). This increase was mainly due to one month of
higher winter tariffs in the June quarter compared with two high winter
tariff months in the September quarter, annual salary increases and
higher surface-ore transport costs. Total cash cost for the quarter
increased from R225,133 per kilogram (US$1,033 per ounce) in the June
quarter to R227,395 per kilogram (US$1,003 per ounce) in the September
quarter.
Operating profit increased from R862 million (US$127 million) in the June
quarter to R1,432 million (US$204 million) in the September quarter.
Capital expenditure increased from R545 million (US$80 million) to R611
million (US$87 million) mainly due to timing of expenditure on various
projects and an increase in ore reserve development.
Notional cash expenditure increased from R290,289 per kilogram (US$1,332
per ounce) in the June quarter to R295,164 per kilogram (US$1,302 per
ounce) in the September quarter as a result of the higher capital
expenditure. The NCE margin increased from 11 per cent to 24 per cent.
Beatrix
September June
2011 2011
Gold produced - 000`oz 84.7 98.0
- kg 2,636 3,048
Yield - underground - g/t 4.6 4.5
- combined - g/t 2.9 2.8
Total cash cost - R/kg 236,002 203,871
- US$/oz 1,041 935
Notional cash expenditure - R/kg 300,228 255,118
- US$/oz 1,325 1,170
NCE margin -% 25 23
Gold production decreased from 98,000 ounces (3,048 kilograms) in the
June quarter to 84,700 ounces (2,636 kilograms) in the September quarter
due to safety-related stoppages and the wage- related industrial action.
Underground tonnes milled decreased from 648,000 tonnes to 547,000
tonnes. The underground yield improved slightly from 4.5 grams per tonne
to 4.6 grams per tonne. Surface tonnes milled decreased from 422,000
tonnes to 352,000 tonnes. Surface yield remained steady quarter-on-
quarter at 0.3 grams per tonne.
Main development decreased from 6,682 metres in the June quarter to 5,442
metres in the September quarter. The on-reef development decreased from
1,673 metres to 1,182 metres due to the industrial action and the five
day stoppage after the fatal accident caused by drilling into a misfire.
The average main development value decreased from 1,325 centimetre grams
per tonne in the June quarter to 1,109 centimetre grams per tonne in the
September quarter and reflects the value variability of the zones
currently being developed.
Operating costs were steady at R625 million (US$92 million) in the June
quarter compared with R628 million (US$89 million) in the September
quarter. Good cost control enabled annual wage increases and winter power
tariffs to be absorbed. Total cash cost increased from R203,871 per
kilogram (US$935 per ounce) to R236,002 per kilogram (US$1,041 per ounce)
due to the lower production.
Operating profit increased from R385 million (US$56 million) in the June
quarter to R427 million (US$61 million) in the September quarter.
Capital expenditure increased from R152 million (US$23 million) to R163
million (US$23 million) with the majority spent on infrastructure
upgrades and ore reserve development.
Notional cash expenditure increased from R255,118 per kilogram (US$1,170
per ounce) in the June quarter to R300,228 per kilogram (US$1,325 per
ounce) in the September quarter due to the decreased production. The NCE
margin increased from 23 per cent to 25 per cent.
South Deep project
September June
2011 2011
Gold produced - 000`oz 64.4 76.1
- kg 2,003 2,366
Yield - underground - g/t 5.0 5.3
- combined - g/t 3.2 3.4
Total cash cost - R/kg 271,842 223,922
- US$/oz 1,199 1,027
Notional cash expenditure - R/kg 520,369 424,894
- US$/oz 2,296 1,949
NCE margin -% (32) (29)
The South Deep capital infrastructure programme continues to meet its key
delivery dates to support the build-up to full production of 750,000
ounces. The new tailings storage facility achieved first deposition in
April this year and has now been commissioned. The ventilation shaft
deepening project remains on track for commissioning in the September
2012 quarter and the additional rock hoisting will build to a nameplate
capacity of 195,000 tonnes per month. This, together with the existing
Main shaft capacity of 175,000 tonnes per month, will deliver the full
production to the mill. The gold plant expansion from 220,000 tonnes to
330,000 tonnes per month is under construction, with commissioning
planned in the September 2012 quarter. The capital development has
achieved 105 per cent of planned metres year to date and capital
expenditure is on track.
Gold production decreased from 76,100 ounces (2,366 kilograms) in the
June quarter to 64,400 ounces (2,003 kilograms) in the September quarter
mainly due to the wage-related industrial action.
Underground reef ore processed during the quarter decreased by 6 per cent
from 419,000 tonnes to 392,000 tonnes, largely due to the wage-related
industrial action as mentioned above.
Total tonnes milled, which included 108,000 tonnes from surface sources
and 123,000 tonnes of off-reef development, decreased from 690,000 tonnes
in the June quarter to 623,000 tonnes in the September quarter. The on-
reef yield decreased from 5.3 grams per tonne to 5.0 grams per tonne
mainly due to changes in mining mix.
Development decreased from 3,063 metres in the June quarter to 2,938
metres in the September quarter. The new mine capital development in
phase 1, sub 95 level, decreased from 1,173 metres to 1,160 metres.
Development in the current mine areas above 95 level decreased from 1,709
metres to 1,484 metres. Vertical development increased from 181 metres to
294 metres. De-stress mining increased by 23 per cent from 5,554 square
metres in the June quarter to 6,815 square metres in the September
quarter.
Operating costs increased from R533 million (US$79 million) in the June
quarter to R550 million (US$78 million) in the September quarter. The
increase was mainly due to increased electricity costs, with two winter
tariff months in the quarter, and an increase in stores cost for
maintenance of mechanised equipment. Total cash cost increased from
R223,922 per kilogram (US$1,027 per ounce) to R271,842 per kilogram
(US$1,199 per ounce) in the September quarter.
Operating profit decreased by 2 per cent from R245 million (US$36
million) in the June quarter to R240 million (US$34 million) in the
September quarter due to the 15 per cent lower gold production, partly
offset by the higher gold price received.
Capital expenditure increased from R472 million (US$69 million) in the
June quarter to R492 million (US$70 million) in the September quarter, in
line with the project plan. The majority of this capital expenditure was
on development, the ventilation shaft deepening and infrastructure, the
metallurgical plant extension, trackless equipment, as well as the full
plant tailings backfill and new tailings dam facility.
Notional cash expenditure increased from R424,894 per kilogram (US$1,949
per ounce) in the June quarter to R520,369 per kilogram (US$2,296 per
ounce) in the September quarter as a result of the lower gold production
together with increased costs and capital expenditure.
West Africa region
Ghana
Tarkwa
September June
2011 2011
Gold produced - 000`oz 180.0 180.8
Yield - heap leach - g/t 0.6 0.5
- CIL plant - g/t 1.4 1.4
- combined - g/t 1.0 1.0
Total cash cost - US$/oz 606 534
Notional cash expenditure - US$/oz 869 889
NCE margin -% 49 41
Gold production was steady quarter on quarter at 180,000 ounces.
Total tonnes mined, including capital stripping, was similar to the June
quarter at 28.8 million tonnes in the September quarter, despite
production being affected by excessive rainfall during the quarter.
Ore mined at 5.2 million tonnes was similar to the June quarter.
Mined grade at 1.24 grams per tonne was marginally higher than the 1.23
grams per tonne achieved during the June quarter. The total feed to the
CIL plant decreased from 2.92 million tonnes in the June quarter to 2.84
million tonnes in the September quarter due to a harder blend of ore
processed. Yield was similar at 1.4 grams per tonne. The CIL plant
produced 131,000 ounces for the September quarter compared with the
129,400 ounces in the June quarter.
Total feed to the North and South heap leach pads decreased from 2.97
million tonnes to 2.76 million tonnes at a similar yield. The high
pressure grinding roller (HPGR) at the South heap leach processed 0.81
million tonnes, similar to the performance achieved during the previous
quarter. Feed to the North heap leach reduced from 2.15 million tonnes to
1.95 million tonnes due to mechanical failure of the primary crusher,
which as a result was non-operational for seven days. The heap leach
process produced 49,000 ounces, compared with 51,400 ounces in the June
quarter. The decrease was attributable to the decreased tonnage stacked
on both facilities.
Net operating costs increased from US$88 million (R596 million) in the
June quarter to US$102 million (R717 million) in the September quarter.
This increase was mainly due to a lower gold-in-process credit of US$8
million (R55 million) in the September quarter compared with a credit of
US$21 million (R140 million) in the June quarter. Total cash cost
increased from US$534 per ounce in the June quarter to US$606 per ounce
in the September quarter, mainly as a result of the lower gold-in-process
credit and a higher royalty payment due to the higher gold price
received.
Operating profit increased from US$185 million (R1,257 million) to US$206
million (R1,455 million).
Capital expenditure decreased from US$52 million (R354 million) in the
June quarter to US$47 million (R332 million) in the September quarter,
with the tailings dam expansion and pre-stripping being the major
expenditure items. The decreased expenditure this quarter was due to the
completion in the previous quarter of the acquisition of additional
mining fleet required for the year.
Notional cash expenditure decreased from US$889 per ounce to US$869 per
ounce due to the decrease in capital expenditure. The NCE margin
increased from 41 per cent to 49 per cent.
Damang
September June
2011 2011
Gold produced - 000`oz 54.3 56.3
Yield - g/t 1.4 1.4
Total cash cost - US$/oz 651 660
Notional cash expenditure - US$/oz 1,107 876
NCE margin -% 35 42
Gold production decreased from 56,300 ounces in the June quarter to
54,300 ounces in the September quarter mainly due to power interruptions
from the state utility infrastructure (ECG). Initiatives are in place,
due to the continual instability of the power supply, to generate an on-
mine power supply, as well as to reduce reliance on the ECG by tying into
the national grid.
Total tonnes mined, including capital stripping, increased from 5.7
million tonnes in the June quarter to 6.7 million tonnes in the September
quarter. This increase is in line with the strategy to expose long-term
ore reserves and to increase the delivery of fresh ore to the mill. Ore
mined at 1.2 million tonnes was similar to the previous quarter.
Tonnes processed decreased marginally from 1.27 million tonnes in the
June quarter to 1.23 million tonnes in the September quarter as a result
of the power interruptions highlighted above.
Net operating costs decreased from US$34 million (R229 million) in the
June quarter to US$30 million (R214 million) in the September quarter due
to an increased gold-in-process credit. Total cash cost decreased from
US$660 per ounce to US$651 per ounce.
Operating profit increased from US$51 million (R348 million) in the June
quarter to US$63 million (R442 million) in the September quarter as a
result of the higher gold price received and lower operating cost.
Capital expenditure increased from US$17 million (R113 million) in the
June quarter to US$26 million (R185 million) in the September quarter,
with pre-stripping, mining fleet acquisitions and US$6 million spent on
the Greater Damang pre-feasibility study being the major items.
Notional cash expenditure increased from US$876 per ounce in the June
quarter to US$1,107 per ounce in the September quarter as a result of the
increased capital expenditure. The NCE margin decreased from 42 per cent
to 35 per cent.
South America region
Peru
Cerro Corona
September June
2011 2011
Gold produced - 000`oz 41.9 41.1
Copper produced - tonnes 9,599 9,814
Total equivalent gold produced - 000` eq oz 93.9 101.0
Total equivalent gold sold - 000` eq oz 90.5 101.5
Yield - gold - g/t 0.8 0.8
- copper -% 0.60 0.60
- combined - g/t 1.7 1.8
Total cash cost - US$/eq oz 494 408
Notional cash expenditure - US$/eq oz 615 526
NCE margin -% 58 62
Gold price * - US$/oz 1,693 1,499
Copper price * - US$/t 9,137 9,176
* Average daily spot price for the period used to calculate total
equivalent gold ounces produced.
Gold produced increased from 41,100 ounces in the June quarter to 41,900
ounces in the September quarter, while copper production decreased from
9,814 tonnes to 9,599 tonnes. These changes were mainly due to variances
in head grade delivered to the plant. Equivalent production decreased
from 101,000 ounces to 93,900 ounces due to the lower copper price
relative to the gold price in the September quarter.
Concentrate with a payable content of 41,500 ounces of gold was sold at
an average price of US$1,728 per ounce and 9,625 tonnes of copper at an
average price of US$8,164 per tonne, net of treatment and refining
charges. Total equivalent gold sales amounted to 90,500 ounces for the
September quarter.
During the September quarter a total of 2.94 million tonnes were mined
compared with 3.48 million tonnes in the June quarter. This decrease was
as a result of the mine sequencing schedule. Ore mined at 1.66 million
tonnes was 3 per cent lower than the 1.71 million tonnes mined in the
June quarter. Gold and copper yield was similar to the previous quarter
at 0.8 grams per ton and 0.60 per cent respectively.
Net operating costs increased from US$38 million (R258 million) in the
June quarter to US$41 million (R289 million) in the September quarter,
mainly due to an increase in the workers` statutory participation in
profits. The workers` statutory participation in profits is calculated on
taxable income which increased quarter on quarter despite a decrease in
operating profit.
Total cash cost increased from US$408 per equivalent ounce in the June
quarter to US$494 per equivalent ounce for the September quarter. This
increase was primarily due to the decrease in equivalent ounces sold from
101,500 ounces in the June quarter to 90,500 ounces in the September
quarter.
Operating profit decreased from US$104 million (R704 million) in the June
quarter to US$93 million (R656 million) in the September quarter, as a
result of the increased costs and the lower copper spot price received
during the quarter.
Capital expenditure for the September quarter amounted to US$17 million
(R118 million), compared with US$16 million (R106 million) in the June
quarter. The increased expenditure was mainly spent on increasing the
capacity of the tailings facility.
Notional cash expenditure increased from US$526 per equivalent ounce in
the June quarter to US$615 per equivalent ounce in the September quarter.
The NCE margin decreased from 62 per cent to 58 per cent.
Australasia region
Australia
St Ives
September June
2011 2011
Gold produced - 000`oz 115.0 108.7
Yield - heap leach - g/t 0.6 0.5
- milling - g/t 2.7 2.7
- combined - g/t 2.1 2.0
Total cash cost - A$/oz 927 959
- US$/oz 978 1,015
Notional cash expenditure - A$/oz 1,328 1,295
- US$/oz 1,401 1,371
NCE margin -% 18 9
Gold production increased from 108,700 ounces in the June quarter to
115,000 ounces in the September quarter on the back of increased
throughput at the Lefroy mill.
At the underground operations, ore mined increased from 401,600 tonnes at
4.5 grams per tonne in the June quarter to 427,000 tonnes at 4.9 grams
per tonne in the September quarter. The increased tonnes were generated
from the Athena mine which reached commercial levels of production during
the September quarter, as scheduled. Improved grades were mainly from
Argo, after some lower grade areas were mined in the June quarter.
At the open pit operations total ore tonnes mined decreased from
1,038,000 tonnes at 1.7 grams per tonne in the June quarter to 992,000
tonnes at 1.5 grams per tonne in the September quarter. The decrease in
the September quarter was due to fleet moving from mining operations to
pre-strip operations in line with the mine schedule. Ore was
predominantly sourced from the lower grade Leviathan pit during the
quarter while pre-stripping progressed at the Formidable, Mars/Minotaur
link and Diana pits. These pits are scheduled to come into production in
the December 2011 quarter.
Total tonnes processed was similar quarter on quarter at 1.68 million
tonnes and 2.1 grams per tonne. At Lefroy, tonnes milled increased from
1.15 million tonnes to 1.24 million tonnes, at a similar head grade of
2.8 grams per tonne. Gold produced from Lefroy increased from 100,700
ounces to 106,600 ounces. At the heap leach facility gold production
increased from 8,000 ounces to 8,400 ounces due to improved recoveries.
Net operating costs increased from A$103 million (R740 million) in the
June quarter to A$106 million (R791 million) in the September quarter.
The increase in costs was due to a greater drawdown of open pit
stockpiles. Total cash cost decreased from A$959 per ounce (US$1,015 per
ounce) to A$927 per ounce (US$978 per ounce) as a result of the higher
gold production.
Operating profit increased from A$51 million (R365 million) to A$81
million (R599 million) due to the increased production and the higher
gold price.
Capital expenditure increased from A$39 million (R275 million) to A$52
million (R384 million) with the majority of additional expenditure
incurred in pre-stripping the Formidable, Mars/Minotaur link and Diana
pits.
Notional cash expenditure increased from A$1,295 per ounce (US$1,371 per
ounce) in the June quarter to A$1,328 per ounce (US$1,401 per ounce) in
the September quarter due to the increased capital expenditure. The NCE
margin increased from 9 per cent to 18 per cent.
Agnew
September June
2011 2011
Gold produced - 000`oz 53.7 50.4
Yield - g/t 6.4 6.8
Total cash cost - A$/oz 667 641
- US$/oz 704 679
Notional cash expenditure - A$/oz 1,047 979
- US$/oz 1,105 1,037
NCE margin - % 37 31
Gold production increased from 50,400 ounces in the June quarter to
53,700 ounces in the September quarter.
Ore mined from underground decreased from 183,000 tonnes at a head grade
of 8.8 grams per tonne in the June quarter to 148,000 tonnes at a head
grade of 11.1 grams per tonne in the September quarter. Underground
tonnes were negatively impacted by rehabilitation work in the Rajah
orebody and a delay in completing necessary infrastructure in the Main
orebody. Both of these issues have since been overcome. Ore mined from
the Songvang open pit increased from 90,000 tonnes to 135,000 tonnes at a
consistent head grade of 1.7 grams per tonne. Gold production from
Songvang increased from 2,900 ounces to 9,600 ounces quarter on quarter.
Tonnes processed increased from 231,000 tonnes in the June quarter to
262,000 tonnes in the September quarter, with a decrease in the combined
yield from 6.8 grams per tonne to 6.4 grams per tonne, as the tonnes
mined from underground were supplemented with lower grade surface
material from the Songvang open pit.
Net operating costs increased from A$32 million (R227 million) in the
June quarter to A$35 million (R262 million) in the September quarter,
mainly due to the increased ore production from the Songvang open pit
during the quarter. Total cash cost per ounce increased from A$641 per
ounce (US$679 per ounce) to A$667 per ounce (US$704 per ounce) as more
ounces were produced from the higher cost open pit source.
Operating profit increased from A$41 million (R291 million) in the June
quarter to A$55 million (R404 million) in the September quarter due to
increased production and a higher gold price.
Capital expenditure increased from A$17 million (R124 million) in the
June quarter to A$20 million (R151 million) in the September quarter.
This included A$9 million spent on underground development and A$4
million on a new ventilation system, incorporating a return air shaft and
primary ventilation fans for the extension of Waroonga underground mine.
Notional cash expenditure increased from A$979 per ounce (US$1,037 per
ounce) in the June quarter to A$1,047 per ounce (US$1,105 per ounce) in
the September quarter due to increased capital expenditure. The NCE
margin increased from 31 per cent to 37 per cent.
Quarter ended 30 September 2011 compared
with quarter ended 30 September 2010
Group attributable equivalent gold production decreased by 1 per cent
from 908,000 ounces for the quarter ended September 2010 to 900,000
ounces for the quarter ended September 2011.
At the South African operations gold production decreased from 497,000
ounces to 428,300 ounces. The majority of this decrease was due to the
wage-related industrial action during the quarter, safety-related
stoppages and slightly lower yields. KDC`s gold production decreased from
323,400 ounces to 279,200 ounces. Beatrix`s gold production decreased
from 102,900 ounces to 84,700 ounces and South Deep`s gold production
decreased from 70,700 ounces to 64,400 ounces.
At the West African operations, total managed gold production decreased
from 242,000 ounces for the quarter ended September 2010 to 234,400
ounces for the quarter ended September 2011. At Tarkwa, gold production
decreased from 185,500 ounces to 180,000 ounces due to slightly lower
grades fed to the CIL plant. At Damang, gold production decreased from
56,500 ounces to 54,300 ounces.
In South America, gold equivalent production at Cerro Corona decreased
from 105,800 ounces in the September 2010 quarter to 93,900 ounces in the
September 2011 quarter, due to anticipated lower gold and copper grades
and a lower copper to gold price ratio.
At the Australasia operations gold production increased by 10 per cent
from 153,200 ounces in the September 2010 quarter to 168,700 ounces in
the September 2011 quarter. St Ives decreased from 117,900 ounces to
115,000 ounces due to lower underground and open pit grades. This
decrease in gold output was despite an increase in mining volumes as a
portion of the increased production was stockpiled at quarter end.
Production at Agnew increased from 35,300 ounces to 53,700 ounces. An
additional 9,600 ounces were produced from the Songvang open pit which
commenced in the June quarter, with the balance from increased production
at Kim, where poor ground conditions impacted production last year.
Revenue increased by 22 per cent from R9,053 million (US$1,230 million)
to R11,060 million (US$1,570 million). The average gold price increased
by 33 per cent from R289,329 per kilogram (US$1,223 per ounce) in the
quarter ended September 2010 to R385,684 per kilogram (US$1,702 per
ounce) in the September 2011 quarter. The Rand strengthened from US$1 =
R7.36 to US$1 = R7.05 or 4 per cent, while the Rand/Australian dollar
weakened by 13 per cent from A$1 = R6.59 to A$1 = R7.44. The Australian
dollar strengthened 18 per cent from 90 cents to 106 cents to the US
dollar.
Net operating costs increased by 5 per cent from R5,132 million (US$697
million) to R5,404 million (US$766 million). Total cash cost for the
Group increased from R164,898 per kilogram (US$697 per ounce) to R192,997
per kilogram (US$851 per ounce) due to a decrease in managed gold
production and the increase in operating costs.
At the South African operations, operating costs increased by 2 per cent
from R3,075 million (US$418 million) for the September 2010 quarter to
R3,131 million (US$444 million) for the September 2011 quarter. This was
due to annual wage increases and the 28 per cent electricity tariff
increase, partly offset by cost saving initiatives at the operations.
Total cash cost at the South African operations increased from R195,627
per kilogram to R235,780 per kilogram as a result of the above factors
and the decrease in production.
At the West African operations, net operating costs decreased from US$143
million in the September 2010 quarter to US$132 million in the September
2011 quarter. At Tarkwa, net operating costs decreased from US$108
million to US$102 million due to a gold-in-process credit and the
conversion to owner maintenance, partly offset by an increase in power
and fuel costs. At Damang, net operating costs decreased from US$35
million to US$30 million. This decrease was due to a gold-in-process
credit and cost savings as a result of the introduction of owner mining.
Total cash cost for the region was similar year on year at US$617 per
ounce.
At Cerro Corona in South America, net operating costs increased from
US$39 million in the September 2010 quarter to US$41 million in the
September 2011 quarter, in line with the increase in workers` statutory
participation in profit. Total cash cost increased from US$354 per ounce
for the September 2010 quarter to US$494 per ounce for the September 2011
quarter mainly due to the lower equivalent production and an increase in
the workers` statutory participation in profits.
At the Australasia operations, net operating costs increased from A$109
million in the September 2010 quarter to A$142 million in the September
2011 quarter. At St Ives, net operating costs increased from A$84 million
to A$106 million mainly due to increased waste normalisation charges as a
result of mining more ounces from the more expensive Leviathan pit and
the gold-in-process credit at the end of September 2010. At Agnew, net
operating costs increased from A$25 million to A$35 million due to the
increase in production from mining the Songvang open pit, which became
operational earlier this year. Total cash costs for the region increased
from US$735 per ounce for the September 2010 quarter to US$844 per ounce
for the September 2011 quarter.
Operating profit increased from R3,921 million (US$533 million) to R5,655
million (US$804 million).
Non-recurring costs amounted to R167 million (US$24 million) compared
with R138 million (US$19 million) in the September 2010 quarter and
included voluntary separation packages and BPR costs at all the
operations.
Government royalties increased from R218 million (US$30 million) in the
September 2010 quarter to R305 million (US$43 million) in the September
2011 quarter driven by the increase in revenue and an increase in the
rate at Tarkwa and Damang, from 3 per cent to 5 per cent with effect from
1 April 2011.
Taxation increased from R632 million (US$86 million) in the September
2010 quarter to R1,223 million (US$174 million) in the September 2011
quarter in line with the higher taxable income.
Net earnings attributable to owners of the parent amounted to R2,055
million (US$293 million), compared with earnings of R701 million (US$95
million) for the quarter ended September 2010.
Earnings excluding non-recurring items, gains and losses on foreign
exchange, financial instruments and gains or losses of associates after
taxation, amounted to R2,111 million (US$301 million) for the quarter
ended September 2011, compared with R1,016 million (US$138 million) for
the quarter ended September 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 are in the process of developing an extensive pipeline of projects
which is discussed below.
Project development
Far Southeast (FSE)
During the quarter the second down-payment of US$66 million was made in
terms of the option agreements to acquire a 60 per cent interest in the
undeveloped gold-copper FSE deposit in the Philippines. Refer to the
Corporate section for more detail.
Exploration at the project continued with eight underground diamond drill
rigs operating, drilling 10,745 metres during this quarter. The initial
proof-of-concept drilling programme was completed and broadly confirms
that the scale and grade of the deposit is consistent with initial
expectations. The higher grade mineralised zone (1.5 to 2.5 grams per
tonne gold equivalent) central to the porphyry body has been confirmed by
the recent drilling. This programme also demonstrated that significant
upside potential exists at depth and in most lateral directions. Ongoing
drilling intends to scope the full scale of the FSE mineralised system as
well as complete a sufficient number of in-fill holes to support the
first resource model to be delivered in the
second half of 2012.
Surface diamond drilling commenced during the quarter to provide detailed
geotechnical data required for mine design studies. A comprehensive
geotechnical data collection programme is also underway. Preliminary
studies on hydrogeology and mine geotechnical design parameters were
completed during the quarter.
Chucapaca
At Chucapaca we announced an updated indicated and inferred mineral
resource of 7.6 million gold equivalent ounces for the Canahuire deposit.
This represents a 35 per cent increase over the initial resource of 5.6
million ounces declared in May 2010.
Mineralisation remains open to the west. Drilling for the feasibility
study with geotechnical, civil and sterilisation drilling was completed
in October 2011. Work on the project description for submission to the
EIA and ongoing work on the feasibility study is progressing to plan.
Metallurgical test work is almost complete and the process flow sheet
will be finalised during the December 2011 quarter. The EIA submission
and the feasibility study are scheduled for completion by mid-2012.
Arctic Platinum project (APP)
The Arctic Platinum project incorporates a pre-feasibility study on the
Suhanko project (mining and processing of the Konttijarvi and Ahmavaara
PGE-Cu-Ni deposits) and a preliminary assessment of the mineralisation
potential in the Suhanko extension area. This extension includes known
deposits at Little Suhanko (adjacent to the Ahmavaara deposit),
Vaaralampi, Tuumasuo and Suhanko North which fall within the Suhanko II
area, and is subject to the mining lease application.
Work is focused on a base case pre-feasibility study on mining and
processing two PGE-Cu-Ni deposits (Konttijaarvi and Ahmavaara).
The proposed process route is to float a concentrate to feed into a
PlatsolCopyright high pressure oxidation process, followed by a
hydrometallurgical refinery to recover metals. Two 50 tonne pilot plant
test programmes were completed during the quarter, largely confirming the
bench-scale test work reported previously. The base case pre-feasibility
study should be completed by early 2012.
An amendment to the existing environmental permit to include the proposed
change to the process facility will be submitted in the December 2011
quarter. Baseline work for the Suhanko II EIA for an extended mining
lease application on an upside case is proceeding in parallel. The
objective is to complete the EIA process by June 2012 and submit an
environmental permit application for Suhanko II shortly thereafter.
Scout exploration drilling on the Suhanko II extended area was completed
at the Tuumasuo and Vaaralampi deposits targeting lateral and depth
extensions. Eleven core holes for 3,492 metres were completed and
significant intersections of sulphide mineralisation encountered. These
extensions will be in-fill drilled over the upcoming winter season.
Confirmation drilling on the Suhanko North prospect, located adjacent to
Tuumasuo, was also completed with visual encouragement in four
drillholes. Assays are pending but zones of sulphide mineralisation up to
89 metres thick were intersected down-dip from previous shallow drilling.
Extensional drilling at Little Suhanko commenced towards the end of the
quarter to determine the potential size of this shallow deposit which is
located 400 metres east of the Ahmavaara deposit. Eight holes were
completed for 672 metres, and confirmed near surface extensions to the
south and east of previous drilling. The drilling programme is expected
to be completed in the December 2011 quarter.
Damang super-pit
The conceptual study of the super-pit identified an exploration target of
between 3 to 4 million ounces based on a tonnage of 50 million to 80
million tonnes, at grades of 1.6 grams per tonne to 1.8 grams per tonne.
Drilling has demonstrated continuity of mineralisation to depths of over
350 metres below the current pit floor and consistent in style with
current mined ores. Evaluation of conceptual models, based on
extrapolation of grade control data, demonstrates potential economic
viability to depths of 400 metres below surface, capable of supporting a
significant expansion and extension to the life of the mine.
The Phase 2 pre-feasibility drilling programme which commenced in May
2011 is near completion. Over 37,000 metres of a planned 44,000 metre
programme of RC and diamond core drilling has been completed, which will
inform a resource model suitable for the on-going study. A geological
model will be constructed and declaration of an updated resource is
expected by mid-2012.
Metallurgical, geotechnical, and environmental testwork is running in
parallel with engineering and design activities. Work on permit
applications has started.
Greenfields exploration
In addition to the four 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, Mali, Guinea, Canada,
Kyrgyzstan and Australia.
Africa
A scoping study was completed for the Yanfolila project in southern Mali
(Gold Fields 85 per cent) which indicates the project requires a minimum
1.5 million ounces resource base to meet internal investment criteria.
Exploration drilling recommenced in the December quarter at the end of
the high rainfall season. Drilling will focus on expanding the resource
base, targeting the mineral potential already identified at six
additional prospect areas within 25 kilometres of the central Komana
camp. An additional 60,000 metres of scoping and in-fill RC and core
drilling is planned. A further 30,000 metres of aircore drilling is also
planned to delineate anomalies identified during geochemical surveys
completed during the 2011 field season.
First pass diamond and RC drilling was completed on the Tinguele prospect
at the Kangare project (Gold Fields 90 per cent) in Mali.
Drill testing of an extensive geochemical anomaly intersected broad
intervals of low level mineralisation in the three drill holes completed.
Follow-up drilling is planned for the approaching drill season.
At the Asheba project in Ghana (Gold Fields 90 per cent) assays were
received from initial drilling completed in early 2011, which confirmed
mineralisation in two prospect areas. Conceptual modelling demonstrated
sufficient mineral potential to justify further follow-up drilling which
is scheduled for completion by June 2012. An auger drilling programme to
explore below transported cover commenced late in the quarter and aims to
identify extensions to the known mineralised trends.
North America
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 in-fill drilling of the Southeast zone porphyry copper-gold-
molybdenum target was completed during the quarter, and conceptual
studies progressed. A total of 42 holes for 17,195 metres of core were
completed, which will contribute to a maiden SAMREC compliant resource to
be finalised by March 2012. In-fill and reconnaissance drilling was also
completed on the Deerhorn, Megabuck and Tisdall Lake prospects
respectively.
A first pass 7-hole, 2,448 metre diamond drilling programme was completed
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 drilling programme tested the Mex copper-
gold target and successfully intersected porphyry related copper-gold
mineralisation.
A 5-hole, 1,706 metre diamond drilling programme was completed on the new
Eldorado property, British Columbia, Canada. Four of the five holes
intersected variable widths of quartz-carbonate brecciation with local
sulphides within altered quartz diorite. Assay results are expected later
this year.
South America
Diamond drilling commenced at the Pacosani Target, Moquegua project, Peru
and RC drilling commenced at the Ichocollo target in the Tacna project,
Peru.
Preparation is underway to commence diamond drilling at the Salares Norte
project in the Maricunga district of Chile in the December 2011 quarter,
following-up on drilling completed earlier this year.
Australasia
Minimal drilling activity was completed in Australia due to seasonal
rainfall and agricultural restrictions. Preparation for the approaching
summer drill season is complete and more than 20,000 metres of drilling
is planned on the East Lachlan gold-copper porphyry prospects.
Other regions
At the Talas project in Kyrgyzstan (Gold Fields 60 per cent in a joint
venture with Orsu Metals Corp, AIM:OSU, TSX:OSU), minor field activities
completed include initial low-level soil sampling on new target areas
(MMI), and detailed ground magnetic surveys to aid future drill
targeting.
Further activity remains on hold following an attack by about ten
horsemen on the exploration camp as reported early in October. A criminal
investigation is underway.
Project generation and near mine exploration
St Ives
Recent activity at St Ives focused on completing resource model updates
for the combined deposits in the Neptune and Revenge areas which have
historically produced in excess of 2 million ounces of gold. More than
25,000 metres of drilling was completed on this complex of deposits
during 2011 and work on geological and resource modelling is being
completed.
Additional resource development drilling programmes totalling in excess
of 25,000 metres were also completed at Greater Santa Ana, Cave Rocks and
the Leviathan area. Drilling has targeted potentially economic extensions
to the established mining centres.
Early-stage target definition and initial drilling activities totalling
24,700 metres were completed on a number of high ranking prospects across
the St Ives tenement. Of significance is a series of high grade aircore
intersections returned from the Incredible prospect. A drilling programme
designed to extend the existing 1.5 kilometre long Incredible pit`s gold
anomaly laterally to
the west is underway.
Agnew
A programme of 14,500 metres of directional diamond core drilling to
prove geological and grade continuity on three newly defined high-grade
shoots in the Main Lode-Kim corridor commenced in July 2011.
Initial indications confirm the presence of three steep-plunging high
grade lode structures. Drilling will continue into the December quarter
so that an initial inferred resource can be completed before committing
to the next stage of drilling.
Positive optimisation of the Cinderella resource suggests a potentially
economic open pit position. A 50-hole programme of RC drilling is planned
to be completed in the December quarter in order to evaluate the short
range variability in the deposit and allow the construction of a final
indicated resource.
Damang
Following almost twelve months of dedicated and intensive activity on the
Damang super-pit, drilling returned to target the potential extension of
the deposits in the Greater Amoanda area. Detailed geological studies
completed during the quarter highlighted that significant extensional
opportunity exists at both the Rex and Amoanda deposits.
On the eastern flank of the Damang anticline, a reconnaissance drill
programme of 31 holes (3,100 metres diamond core) is planned at the Bonsa
forest hydrothermal prospect, targeting both structural hydrothermal
mineralisation and potential conglomerate reef positions.
Cerro Corona
All results from the phase 2 in-pit extensional drill programme have now
been received and essentially confirm the gold and copper distribution to
be consistent with the December 2010 model. Localised higher grade zones
are also evident, which have potential to provide short-term production
grade increases over the life of mine.
Significantly, the phase 2 drilling also identified a number of
intersections outside the planned pit designs, particularly at depth. A
programme of deeper drilling is planned in 2012 to scope out the
potential for resource expansion opportunities below and lateral to the
current pit limits.
A 12-hole programme at Sylvita on the northern flank of the Cerro Corona
porphyry was completed and logged. Intervals of altered porphyry, along
with skarn mineralisation containing visible copper and zinc sulphides
were intersected. All assay results are pending.
Business development
Gold Fields entered into an option agreement with Bezant Resources PLC
(Bezant) to acquire the entire issued share capital of Asean Copper
Investments Limited which is incorporated in the British Virgin Islands,
a wholly owned subsidiary of Bezant. Asean holds Bezant`s entire interest
in the Guinaoang porphyry copper-gold deposit (the Mankayan project)
located on Luzon Island in the Philippines. Subject to approval from
Bezant`s shareholders and the payment of an upfront non-refundable option
fee of US$7 million, Gold Fields will be granted the option to acquire
the entire issued share capital of Asean for US$63 million. The option
can be exercised from the date upon which it is granted until expiry on
31 January 2013. The Mankayan project is located approximately 4
kilometres east of the FSE deposit.
Corporate
Registration of Beatrix`s carbon project
Gold Fields is leading the mining industry in reducing climate change
with its innovative carbon credit project at its Beatrix mine in Welkom,
in the Free State. On 7 September 2011, this project reached a major
milestone with its registration as a South African Clean Development
Mechanism (CDM) project at the United Nations Framework Convention on
Climate Change (UNFCCC).
The project not only reduces carbon emissions and significantly increases
safety but will also generate an alternative source of clean energy. It
is expected that the carbon emissions at the operation will be reduced
from the 2010 base by 1.7 million tonnes of carbon dioxide (CO2) during
the period 2011 to 2018. Methane gas is captured at its source and piped
to surface where it is either flared or used to generate electricity.
This is the first time that this type of project has been implemented in
South Africa.
Although gold mines are generally not viewed as big carbon emitters, the
situation is different in South Africa because deep level mines are hot
and energy intensive. This project is therefore an important contribution
to the reduction of carbon emissions and was awarded the European Energy
Risk Deal of the Year award in 2010.
Option agreement in the Philippines
In terms of the option agreements to acquire a 60 per cent interest in
the undeveloped gold-copper Far Southeast (FSE) deposit in the
Philippines, the second down-payment of US$66 million was made on 21
September 2011. The option agreements were entered into with Lepanto
Consolidated Mining Company (Lepanto), a company listed in the
Philippines, and Liberty Express Assets, a private holding company.
The non-refundable down-payment of US$66 million to Liberty is the second
in a series of three payments. The first payment of US$54 million was
paid with the signing of the option agreement on 20 September 2010. To
finalise the acquisition of the 60 per cent interest in FSE, a final
payment of US$220 million will be required to be paid in the first half
of 2012. The total pre-agreed acquisition price for a 60 per cent
interest in FSE, inclusive of all of the above payments, is US$340
million.
Moody`s changes Gold Fields Baa3 credit rating outlook to positive from
stable
According to Moody`s Investor Services (Moody`s) a change in outlook was
mainly prompted by Gold Fields` continued progress in terms of further
diversifying its production and EBITDA geographically and becoming less
dependent on South Africa. Combined with this view was the increased
expectation that the company would also be able to maintain its
conservative leverage of Net Debt to EBITDA ratio below one and maintain
a positive free cash flow generation, even in a much lower gold price
environment.
Gold Fields has also maintained an investment grade credit rating of BBB-
(Stable outlook) from Standard & Poor`s Ratings Services (S&P).
Changes to the executive
Peet van Schalkwyk has been appointed as Executive Vice President (EVP)
and Head of Operations for West Africa, replacing Peter Turner who took
up the position of EVP, South Africa region during August. Peet returns
to Gold Fields after working as General Manager of Alamos Gold
Incorporated in Turkey for the past eighteen months.
Prior to this he was General Manager at both Tarkwa and Damang in Ghana.
Peet also worked in Mali as metallurgical manager for five years. His
wealth of experience and knowledge of the operations and mineral deposits
in the region will contribute to the success and growth of our footprint
in West Africa.
Awards and achievements
Gold Fields was placed first among the top 300 companies operating in the
BRICS (Brazil, Russia, India, China, South Africa) countries in the
Environmental Tracking (ET) Carbon Rankings, which ranks companies in
terms of their disclosure of greenhouse gas emissions. Gold Fields was
ranked third in the Global top 800 companies table. The ET Carbon
Rankings are compiled by the Environmental Investment Organisation (EIO),
an independent not-for-profit research body focusing on economic and
financial innovation to reduce global corporate greenhouse gas emissions.
Gold Fields was also the joint winner (with Nedbank) in Ernst & Young`s
Excellence in Corporate Reporting awards for 2011. The results were based
on the latest annual reports of the top 100 JSE Limited listed companies.
Gold Fields was the top resources company and placed fourth overall in
the Financial Mail Nkonki Group inaugural Integrated Annual Report awards
among the JSE Limited Top 40 companies.
Based on the annual report for the six month period ended 31 December
2010, Gold Fields improved its rating on the Dow Jones Sustainability
Index by 6 percentage points to 81 per cent.
Outlook
The production guidance for the year ending December 2011 remains
unchanged despite the recent wage-related industrial action and higher
than expected safety-related stoppages which disrupted the South African
operations. Equivalent gold production is estimated at 3.5 million
attributable ounces, which is in the range previously provided.
Total cash cost is estimated at US$810 per ounce (R187,000 per kilogram)
and the NCE US$1,200 per ounce (R277,000 per kilogram) for financial
2011. Cash cost is slightly higher than the previous estimate due to an
increase in royalties driven by the higher gold price. NCE per ounce is
in line with previous guidance. This estimate is based on an average
exchange rate of R/US$7.18 and US$/A$1.04 for 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 unaudited condensed consolidated 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
10 November 2011
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
September June
September
SOUTH AFRICAN RAND
2011 2011 2010
11,059.5 9,581.0 9,052.8
Revenue
Operating costs, net (5,404.1) (5,124.2) (5,132.0)
- Operating costs (5,450.4) (5,250.7) (5,173.4)
- Gold inventory change 46.3 126.5 41.4
Operating profit 5,655.4 4,456.8 3,920.8
Amortisation and depreciation (1,377.4) (1,277.2) (1,442.5)
Net operating profit 4,278.0 3,179.6 2,478.3
Net interest paid (69.0) (31.5) (69.6)
Share of gain/(loss) of associates after
taxation 5.0 0.8 (217.6)
Gain/(loss) on foreign exchange 72.2 (19.0) (11.1)
(Loss)/gain on financial instruments (0.3) 24.6 (2.6)
Share-based payments (121.6) (122.5) (119.0)
Other (74.3) (84.8) (23.7)
Exploration (188.5) (213.5) (123.5)
Feasibility and evaluation costs (48.0) (17.2) -
Profit before royalties, taxation and
non-recurring items 3,853.5 2,716.5 1,911.2
Non-recurring items (167.2) (100.6) (138.3)
Profit before royalties and taxation 3,686.3 2,615.9 1,772.9
Royalties (304.5) (236.4) (217.5)
Profit before taxation 3,381.8 2,379.5 1,555.4
Mining and income taxation (1,222.8) (866.3) (631.5)
- Normal taxation (841.0) (520.7) (459.2)
- Deferred taxation (381.8) (345.6) (172.3)
Net profit 2,159.0 1,513.2 923.9
Attributable to:
- Owners of the parent 2,054.6 1,266.8 700.9
- Non-controlling interest 104.4 246.4 223.0
Non-recurring items:
Profit on sale of investments - - 1.0
Profit/(loss) on sale of assets 0.4 (2.4) 2.7
Restructuring costs (167.4) (63.0) (142.0)
Impairment of investments (0.2) (1.2) -
Other - (34.0) -
Total non-recurring items (167.2) (100.6) (138.3)
Taxation 55.0 30.1 50.0
Net non-recurring items after taxation (112.2) (70.5) (88.3)
Net earnings 2,054.6 1,266.8 700.9
Net earnings per share (cents) 284 175 99
Diluted earnings per share (cents) 280 174 98
Headline earnings 2,054.4 1,270.1 698.5
Headline earnings per share (cents) 284 176 99
Diluted headline earnings per share (cents) 281 174 98
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 2,111.4 1,326.4 1,016.3
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) 291 184 144
Gold sold - managed kg 28,675 29,371 31,289
Gold price received R/kg 385,684 326,206 289,329
Total cash cost R/kg 192,997 177,934 164,898
Nine months to
September September
SOUTH AFRICAN RAND 2011 2010
29,609.9 25,135.4
Revenue
Operating costs, net (15,406.7) (14,906.5)
- Operating costs (15,660.1) (15,034.2)
- Gold inventory change 253.4 127.7
Operating profit 14,203.2 10,228.9
Amortisation and depreciation (3,894.6) (3,950.0)
Net operating profit 10,308.6 6,278.9
Net interest paid (141.4) (147.7)
Share of gain/(loss) of associates after taxation 2.3 (127.3)
Gain/(loss) on foreign exchange 56.2 (20.7)
(Loss)/gain on financial instruments 30.7 (8.5)
Share-based payments (366.1) (286.0)
Other (235.2) (240.0)
Exploration (540.5) (435.9)
Feasibility and evaluation costs (92.5) -
Profit before royalties, taxation and non-recurring
items 9,022.1 5,012.8
Non-recurring items (350.4) (260.1)
Profit before royalties and taxation 8,671.7 4,752.7
Royalties (705.5) (555.5)
Profit before taxation 7,966.2 4,197.2
Mining and income taxation (2,869.1) (1,705.2)
- Normal taxation (1,961.5) (954.2)
- Deferred taxation (907.6) (751.0)
Net profit 5,097.1 2,492.0
Attributable to:
- Owners of the parent 4,421.8 1,916.5
- Non-controlling interest 675.3 575.5
Non-recurring items:
Profit on sale of investments - 89.2
Profit/(loss) on sale of assets (3.3) 4.1
Restructuring costs (315.0) (155.5)
Impairment of investments (1.4) (197.9)
Other (30.7) -
Total non-recurring items (350.4) (260.1)
Taxation 111.0 43.3
Net non-recurring items after taxation (239.4) (216.8)
Net earnings 4,421.8 1,916.5
Net earnings per share (cents) 612 271
Diluted earnings per share (cents) 605 267
Headline earnings 4,425.9 2,029.6
Headline earnings per share (cents) 613 287
Diluted headline earnings per share (cents) 606 284
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 4,589.5 2,281.8
Net earnings per share excluding gains and losses on
foreign exchange,
financial instruments, non-recurring items and share
of gain/(loss) of
associates after royalties and taxation (cents) 635 323
Gold sold - managed kg 86,821 89,317
Gold price received R/kg 341,045 281,418
Total cash cost R/kg 179,768 166,772
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
September June September
UNITED STATES DOLLARS
2011 2011 2010
Revenue 1,570.3 1,411.3 1,230.0
Operating costs, net (766.1) (754.9) (697.3)
- Operating costs (772.5) (773.5) (702.9)
- Gold inventory change 6.4 18.6 5.6
Operating profit 804.2 656.4 532.7
Amortisation and depreciation (195.3) (188.2) (196.0)
Net operating profit 608.9 468.2 336.7
Net interest paid (9.9) (4.6) (9.5)
Share of gain/(loss) of associates after
taxation 0.7 0.1 (29.6)
Gain/(loss) on foreign exchange 10.4 (2.7) (1.5)
(Loss)/gain on financial instruments (0.1) 3.6 (0.4)
Share-based payments (17.3) (18.0) (16.2)
Other (10.5) (12.8) (3.1)
Exploration (26.7) (31.3) (16.7)
Feasibility and evaluation costs (6.8) (2.6) -
Profit before royalties, taxation and
non-recurring items 548.7 399.9 259.7
Non-recurring items (23.9) (14.8) (18.8)
Profit before royalties and taxation 524.8 385.1 240.9
Royalties (43.4) (34.7) (29.6)
Profit before taxation 481.4 350.4 211.3
Mining and income taxation (174.1) (127.6) (85.8)
- Normal taxation (119.7) (77.0) (62.4)
- Deferred taxation (54.4) (50.6) (23.4)
Net profit 307.3 222.8 125.5
Attributable to:
- Owners of the parents 293.0 186.3 95.2
- Non-controlling interest 14.3 36.5 30.3
Non-recurring items:
Profit on sale of investments - - 0.1
(Loss)/profit on sale of assets - (0.3) 0.4
Restructuring costs (23.9) (9.4) (19.3)
Gain on financial instruments - - -
Driefontein 9 shaft closure cost - - -
Impairment of investments - (0.2) -
Other - (4.9) -
Total non-recurring items (23.9) (14.8) (18.8)
Taxation 7.9 4.4 6.8
Net non-recurring items after taxation (16.0) (10.4) (12.0)
Net earnings 293.0 186.3 95.2
Net earnings per share (cents) 40 26 13
Diluted earnings per share (cents) 40 25 13
Headline earnings 293.0 186.7 94.8
Headline earnings per share (cents) 40 26 13
Diluted headline earnings per share (cents) 40 25 13
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 301.1 195.2 138.1
Net earnings per share excluding gains and
losses on foreign exchange,
financial instruments, non-recurring items
and share of gain/(loss) of associates
after royalties and taxation (cents) 42 27 20
South African rand/United States dollar
conversion rate 7.05 6.78 7.36
South African rand/Australian dollar
conversion rate 7.44 7.18 6.59
Gold sold - managed oz (000) 922 944 1,006
Gold price received US$/oz 1,702 1,496 1,223
Total cash cost US$/oz 851 816 697
Nine months to
September September
UNITED STATES DOLLARS
2011 2010
Revenue 4,266.6 3,370.4
Operating costs, net (2,220.0) (1,998.0)
- Operating costs (2,256.5) (2,015.1)
- Gold inventory change 36.5 17.1
Operating profit 2,046.6 1,372.4
Amortisation and depreciation (561.2) (529.7)
Net operating profit 1,485.4 842.7
Net interest paid (20.4) (19.8)
Share of gain/(loss) of associates after taxation 0.3 (17.7)
Gain/(loss) on foreign exchange 8.1 (2.8)
(Loss)/gain on financial instruments 4.4 (1.4)
Share-based payments (52.8) (38.6)
Other (33.9) (31.7)
Exploration (77.9) (58.3)
Feasibility and evaluation costs (13.3) -
Profit before royalties, taxation and non-recurring
items 1,299.9 672.4
Non-recurring items (50.5) (33.5)
Profit before royalties and taxation 1,249.4 638.9
Royalties (101.7) (74.4)
Profit before taxation 1,147.7 564.5
Mining and income taxation (413.4) (229.0)
- Normal taxation (282.6) (128.6)
- Deferred taxation (130.8) (100.4)
Net profit 734.3 335.5
Attributable to:
- Owners of the parents 637.0 258.4
- Non-controlling interest 97.3 77.1
Non-recurring items:
Profit on sale of investments - 12.7
(Loss)/profit on sale of assets (0.5) 0.6
Restructuring costs (45.4) (21.1)
Gain on financial instruments - 0.1
Driefontein 9 shaft closure cost - 0.3
Impairment of investments (0.2) (26.1)
Other (4.4) -
Total non-recurring items (50.5) (33.5)
Taxation 16.0 5.7
Net non-recurring items after taxation (34.5) (27.8)
Net earnings 637.0 258.4
Net earnings per share (cents) 88 36
Diluted earnings per share (cents) 87 36
Headline earnings 637.6 272.5
Headline earnings per share (cents) 88 39
Diluted headline earnings per share (cents) 87 38
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 661.3 307.0
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) 92 44
South African rand/United States dollar conversion rate 6.94 7.46
South African rand/Australian dollar conversion rate 7.21 6.67
Gold sold - managed oz (000) 2,791 2,872
Gold price received US$/oz 1,528 1,173
Total cash cost US$/oz 806 695
Statement of comprehensive income
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
September June September
SOUTH AFRICAN RAND
2011 2011 2010
2,159.0 1,513.2 923.9
Net profit
Other comprehensive income/(expenses),
net of tax 1,130.1 89.2 (620.0)
Marked to market valuation of listed
investments (1.5) (23.7) 41.8
Currency translation adjustments and other 1,127.0 114.8 (671.4)
Share of equity investee`s other
comprehensive income 0.1 - 7.0
Deferred taxation on marked to market
valuation of listed investments 4.5 (1.9) 2.6
Total comprehensive income 3,289.1 1,602.4 303.9
Attributable to:
- Owners of the parent 3,185.1 1,355.5 82.5
- Non-controlling interest 104.0 246.9 221.4
3,289.1 1,602.4 303.9
Nine months to
September September
SOUTH AFRICAN RAND
2011 2010
5,097.1 2,492.0
Net profit
Other comprehensive income/(expenses), net of tax 1,616.4 (1,005.7)
Marked to market valuation of listed investments 2.8 (72.8)
Currency translation adjustments and other 1,609.1 (946.3)
Share of equity investee`s other comprehensive income 0.1 4.5
Deferred taxation on marked to market valuation of
listed investments 4.4 8.9
Total comprehensive income 6,713.5 1,486.3
Attributable to:
- Owners of the parent 6,037.8 913.7
- Non-controlling interest 675.7 572.6
6,713.5 1,486.3
Statement of comprehensive income
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
September June September
UNITED STATES DOLLARS
2011 2011 2010
307.3 222.8 125.5
Net profit
Other comprehensive (expenses)/income,
net of tax (814.8) 53.8 376.8
Marked to market valuation of listed
investments (0.2) (3.4) 5.7
Currency translation adjustments and other (815.2) 57.5 369.7
Share of equity investee`s other
comprehensive income - - 1.0
Deferred taxation on marked to market
valuation of listed investments 0.6 (0.3) 0.4
Total comprehensive (loss)/income (507.5) 276.6 502.3
Attributable to:
- Owners of the parent (498.9) 233.3 442.4
- Non-controlling interest (8.6) 43.3 59.9
(507.5) 276.6 502.3
Nine months to
September September
UNITED STATES DOLLARS
2011 2010
734.3 335.5
Net profit
Other comprehensive (expenses)/income, net of tax (871.4) 383.4
Marked to market valuation of listed investments 0.4 (9.7)
Currency translation adjustments and other (872.4) 391.1
Share of equity investee`s other comprehensive income - 0.7
Deferred taxation on marked to market valuation of
listed investments 0.6 1.3
Total comprehensive (loss)/income (137.1) 718.9
Attributable to:
- Owners of the parent (207.4) 608.8
- Non-controlling interest 70.3 110.1
(137.1) 718.9
Statement of financial position
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND UNITED STATES DOLLARS
September December September December
2011 2010 2011 2010
Property, plant and equipment 60,586.9 53,249.8 7,479.9 7,888.9
Goodwill 4,458.9 4,458.9 550.5 660.6
Non-current assets 1,213.6 1,137.9 149.8 168.6
Investments 931.1 1,078.5 115.0 159.8
Deferred taxation 693.9 753.1 85.7 111.6
Current assets 12,309.9 11,136.1 1,519.7 1,649.8
- Other current assets 7,875.2 5,672.3 972.2 840.3
- Cash and deposits 4,434.7 5,463.8 547.5 809.5
Total assets 80,194.3 71,814.3 9,900.6 10,639.3
Shareholders` equity 45,288.5 46,622.5 5,591.2 6,907.1
Deferred taxation 9,257.1 7,814.5 1,142.9 1,157.7
Long-term loans 11,156.9 7,671.9 1,377.4 1,136.6
Environmental rehabilitation
provisions 2,589.2 2,271.2 319.7 336.5
Post-retirement health care
provisions 18.1 18.0 2.2 2.7
Other long-term provisions 110.0 133.2 13.6 19.7
Current liabilities 11,774.5 7,283.0 1,453.6 1,079.0
- Other current liabilities 7,400.5 5,516.8 913.6 817.3
- Current portion of
long-term loans 4,374.0 1,766.2 540.0 261.7
Total equity and liabilities 80,194.3 71,814.3 9,900.6 10,639.3
South African rand/US dollar
conversion rate 8.10 6.75
South African
rand/Australian dollar
conversion rate 8.09 6.77
Net debt 11,096.2 3,974.3 1,369.9 588.8
Condensed statement of changes in equity
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
Share capital Other Retained
and premium reserves earnings
Balance as at 31 December 2010 31,560.6 (38.3) 12,019.8
Total comprehensive income - 1,616.0 4,421.8
Profit for the period - - 4,421.8
Other comprehensive income - 1,616.0 -
Dividends paid - - (1,229.4)
Share-based payments - 366.1 -
Loans received from non-controlling interest - - -
Purchase of non-controlling interest - - (4,469.8)
Treasury shares (81.4) - -
Exercise of employee share options 29.6 - -
Balance as at 30 September 2011 31,508.8 1,943.8 10,742.4
Non-controlling Total
interest equity
Balance as at 31 December 2010 3,080.4 46,622.5
Total comprehensive income 675.7 6,713.5
Profit for the period 675.3 5,097.1
Other comprehensive income 0.4 1,616.4
Dividends paid (154.2) (1,383.6)
Share-based payments - 366.1
Loans received from non-controlling interest 152.5 152.5
Purchase of non-controlling interest (2,660.9) (7,130.7)
Treasury shares - (81.4)
Exercise of employee share options - 29.6
Balance as at 30 September 2011 1,093.5 45,288.5
UNITED STATES DOLLARS
Share capital Other Retained
and premium reserves earnings
Balance as at 31 December 2010 4,602.7 207.4 1,640.6
Total comprehensive (expenses)/income - (844.4) 637.0
Profit for the period - - 637.0
Other comprehensive expenses - (844.4) -
Dividends paid - - (174.9)
Share-based payments - 52.8 -
Loans received from non-controlling
interest - - -
Purchase of non-controlling interest - - (657.6)
Treasury shares (11.7) - -
Exercise of employee share options 4.3 - -
Balance as at 30 September 2011 4,595.3 (584.2) 1,445.1
Non-controlling Total
interest equity
Balance as at 31 December 2010 456.4 6,907.1
Total comprehensive (expenses)/income 70.3 (137.1)
Profit for the period 97.3 734.3
Other comprehensive expenses (27.0) (871.4)
Dividends paid (22.2) (197.1)
Share-based payments - 52.8
Loans received from non-controlling interest 22.0 22.0
Purchase of non-controlling interest (391.5) (1,049.1)
Treasury shares - (11.7)
Exercise of employee share options - 4.3
Balance as at 30 September 2011 135.0 5,591.2
SOUTH AFRICAN RAND
Share capital Other Retained
and premium reserves earnings
Balance as at 31 December 2009 31,503.5 (1,252.6) 11,727.9
Total comprehensive (expenses)/income - (1,002.8) 1,916.5
Profit for the period - - 1,916.5
Other comprehensive expenses - (1,002.8) -
Dividends paid - - (847.4)
Share-based payments - 286.0 -
Loans repaid to non-controlling
interest - - -
Exercise of employee share options 34.7 - -
Balance as at 30 September 2010 31,538.2 (1,969.4) 12,797.0
Non-controlling Total
interest equity
Balance as at 31 December 2009 2,746.4 44,725.2
Total comprehensive (expenses)/income 572.6 1,486.3
Profit for the period 575.5 2,492.0
Other comprehensive expenses (2.9) (1,005.7)
Dividends paid (175.2) (1,022.6)
Share-based payments - 286.0
Loans repaid to non-controlling interest (116.4) (116.4)
Exercise of employee share options - 34.7
Balance as at 30 September 2010 3,027.4 45,393.2
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 - 350.3 258.4
Profit for the period - - 258.4
Other comprehensive income - 350.3 -
Dividends paid - - (112.9)
Share-based payments - 38.6 -
Loans repaid to non-controlling
interest - - -
Exercise of employee share options 4.6 - -
Balance as at 30 September 2010 4,599.4 (319.4) 1,746.4
Non-controlling Total
interest equity
Balance as at 31 December 2009 359.0 5,846.4
Total comprehensive income 110.1 718.8
Profit for the period 77.1 335.5
Other comprehensive income 33.0 383.3
Dividends paid (23.1) (136.0)
Share-based payments - 38.6
Loans repaid to non-controlling interest (15.4) (15.4)
Exercise of employee share options - 4.6
Balance as at 30 September 2010 430.6 6,457.0
Statement of cash flows
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
September June September
SOUTH AFRICAN RAND 2011 2011 2010
Cash flows from operating activities 5,056.5 2,954.2 2,250.7
Profit before royalties, tax and
non-recurring items 3,853.5 2,716.5 1,911.2
Non-recurring items (167.2) (100.6) (138.3)
Amortisation and depreciation 1,377.4 1,277.2 1,442.5
South Deep BEE dividend paid - - -
Change in working capital 372.7 47.8 (753.2)
Royalties and taxation paid (689.0) (984.9) (623.3)
Other non-cash items 309.1 (1.8) 411.8
Dividends paid (870.5) (7.3) (494.4)
Owners of the parent (723.6) - (494.4)
Non-controlling interest holders (146.9) (7.3) -
Cash flows from investing activities (3,161.1) (8,029.7) (2,228.0)
Capital expenditure - additions (2,607.4) (2,285.0) (2,225.4)
Capital expenditure - proceeds on
disposal 0.6 8.2 28.7
Payment for FSE (534.6) - -
La Cima non-controlling interest buy-out - (1,242.6) -
Ghana non-controlling interest buy-out - (4,519.7) -
Purchase of investments - - (22.5)
Proceeds on disposal of investments 13.3 12.0 1.0
Environmental and post-retirement health
care payments (33.0) (2.6) (9.8)
Cash flows from financing activities (1,431.3) 2,795.2 1,188.8
Loans received 400.0 3,927.3 4,013.1
Loans repaid (1,905.2) (1,184.6) (2,840.1)
Non-controlling interest holders` loans
repaid - - -
Non-controlling interest holders` loans
received 64.0 46.6 -
Shares issued 9.9 5.9 15.8
Net cash (outflow)/inflow (406.4) (2,287.6) 717.1
Translation adjustment 496.1 29.4 (194.4)
Cash at beginning of period 4,345.0 6,603.2 3,790.5
Cash at end of period 4,434.7 4,345.0 4,313.2
Cash flow from operating activities less
capital expenditure - additions 2,449.1 669.2 25.3
Nine months to
September September
SOUTH AFRICAN RAND 2011 2010
Cash flows from operating activities 10,793.2 8,483.9
Profit before royalties, tax and non-recurring items 9,022.1 5,012.8
Non-recurring items (350.4) (260.1)
Amortisation and depreciation 3,894.6 3,950.0
South Deep BEE dividend paid (21.4) -
Change in working capital 129.9 719.6
Royalties and taxation paid (2,335.9) (1,559.5)
Other non-cash items 454.3 621.1
Dividends paid (1,442.2) (1,022.6)
Owners of the parent (1,229.4) (847.4)
Non-controlling interest holders (212.8) (175.2)
Cash flows from investing activities (14,613.2) (5,872.4)
Capital expenditure - additions (6,961.0) (6,254.1)
Capital expenditure - proceeds on disposal 17.5 31.9
Payment for FSE (534.6) -
La Cima non-controlling interest buy-out (2,611.0) -
Ghana non-controlling interest buy-out (4,519.7) -
Purchase of investments (0.7) (73.4)
Proceeds on disposal of investments 36.8 512.8
Environmental and post-retirement health care payments (40.5) (89.6)
Cash flows from financing activities 3,641.7 1,100.7
Loans received 7,499.1 9,119.2
Loans repaid (4,039.5) (7,936.8)
Non-controlling interest holders` loans repaid - (116.4)
Non-controlling interest holders` loans received 152.5
-
Shares issued 29.6 34.7
Net cash (outflow)/inflow (1,620.5) 2,689.6
Translation adjustment 591.4 (204.6)
Cash at beginning of period 5,463.8 1,828.2
Cash at end of period 4,434.7 4,313.2
Cash flow from operating activities less capital
expenditure - additions 3,832.2 2,229.8
Quarter
September June September
UNITED STATES DOLLARS
2011 2011 2010
Cash flows from operating activities 716.5 435.5 308.0
Profit before royalties, tax and
non-recurring items 548.7 399.9 259.7
Non-recurring items (23.9) (14.8) (18.8)
Amortisation and depreciation 195.3 188.2 196.0
South Deep BEE dividend paid - - -
Change in working capital 54.0 6.3 (102.3)
Royalties and taxation paid (102.0) (144.1) (82.6)
Other non-cash items 44.4 - 56.0
Dividends paid (122.8) (1.1) (67.4)
Owners of the parent (101.7) - (67.4)
Non-controlling interest holders (21.1) (1.1) -
Cash flows from investing activities (439.0) (1,185.1) (302.8)
Capital expenditure - additions (370.2) (336.4) (302.4)
Capital expenditure - proceeds on
disposal - 1.3 3.9
Payment for FSE (66.0) - -
La Cima non-controlling interest buy-out - (184.4) -
Ghana non-controlling interest buy-out - (667.0) -
Purchase of investments - - (3.1)
Proceeds on disposal of investments 1.9 1.8 0.1
Environmental and post-retirement health
care payments (4.7) (0.4) (1.3)
Cash flows from financing activities (184.5) 403.9 169.4
Loans received 56.7 570.0 557.4
Loans repaid (251.7) (173.8) (390.1)
Non-controlling interest holders` loans
repaid - - -
Non-controlling interest holders` loans
received 9.1 6.8 -
Shares issued 1.4 0.9 2.1
Net cash (outflow)/inflow (29.8) (346.8) 107.2
Translation adjustment (53.3) 23.2 5.6
Cash at beginning of period 630.6 954.2 500.7
Cash at end of period 547.5 630.6 613.5
Cash flow from operating activities less
capital expenditure - additions 346.3 99.1 5.6
Nine months to
September September
UNITED STATES DOLLARS
2011 2010
Cash flows from operating activities 1,549.6 1,134.9
Profit before royalties, tax and non-recurring items 1,299.9 672.4
Non-recurring items (50.5) (33.5)
Amortisation and depreciation 561.2 529.7
South Deep BEE dividend paid (3.1) -
Change in working capital 18.7 90.2
Royalties and taxation paid (342.1) (206.5)
Other non-cash items 65.5 82.6
Dividends paid (205.8) (136.0)
Owners of the parent (174.9) (112.9)
Non-controlling interest holders (30.9) (23.1)
Cash flows from investing activities (2,116.2) (776.6)
Capital expenditure - additions (1,003.0) (838.4)
Capital expenditure - proceeds on disposal 2.5 4.3
Payment for FSE (66.0) -
La Cima non-controlling interest buy-out (382.1) -
Ghana non-controlling interest buy-out (667.0) -
Purchase of investments (0.1) (10.0)
Proceeds on disposal of investments 5.3 79.4
Environmental and post-retirement health care payments (5.8) (11.9)
Cash flows from financing activities 549.6 158.9
Loans received 1,084.9 1,235.2
Loans repaid (561.6) (1,065.5)
Non-controlling interest holders` loans repaid - (15.4)
Non-controlling interest holders` loans received 22.0 -
Shares issued 4.3 4.6
Net cash (outflow)/inflow (222.8) 381.2
Translation adjustment (39.2) (6.7)
Cash at beginning of period 809.5 239.0
Cash at end of period 547.5 613.5
Cash flow from operating activities less capital
expenditure - additions 546.6 296.5
Reconciliation of headline earnings with net earnings
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND
Quarter
September June September
2011 2011 2010
Net earnings 2,054.6 1,266.8 700.9
Profit on sale of investments - - (1.0)
Taxation effect on sale of investments - - 0.3
Loss/(profit) on sale of assets (0.4) 2.4 (2.7)
Taxation effect on sale of assets - (0.3)
1.0
Impairment of investments 0.2 1.2 -
Headline earnings 2,054.4 1,270.1 698.5
Headline earnings per share - cents 284 176 99
Based on headline earnings as given above
divided by 723,159,600 (June 2011 - 721,981,479 and
September 2010 - 706,090,891) being the weighted average
number of ordinary shares in issue.
UNITED STATES DOLLARS
Quarter
September June September
2011 2011 2010
Net earnings 293.0 186.3 95.2
Profit on sale of investments - - (0.1)
Taxation effect on sale of investments - - -
Loss/(profit) on sale of assets - 0.3 (0.4)
Taxation effect on sale of assets - (0.1) 0.1
Impairment of investments - 0.2 -
Headline earnings 293.0 186.7 94.8
Headline earnings per share - cents 40 26 13
Based on headline earnings as given above
divided by 723,159,600 (June 2011 - 721,981,479 and
September 2010 - 706,090,891) being the weighted average
number of ordinary shares in issue.
Hedging / Derivatives
The Group`s policy is to remain unhedged to the gold price. However,
hedges are sometimes undertaken on a project specific basis as follows:
- to protect cash flows at times of significant expenditure;
- for specific debt servicing requirements; and
- to safeguard the viability of higher cost operations.
Gold Fields may from time to time establish currency financial
instruments to protect underlying cash flows.
South Africa forward cover contracts*
Outstanding at the end of September 2011 was the following contract:
- CAD/ZAR - CAD0.4 million in total, with a zero marked to market value.
* Do not qualify for hedge accounting and will be accounted for as
derivative financial instruments in the income statement.
Debt maturity ladder
Figures are in millions unless otherwise stated
31 Dec 2011 31 Dec 2012 31 Dec
2013
Committed loan facilities
(including US$ bond and preference
shares)
Rand million - 1,000.0 500.0
US dollar million 10.0 557.0 48.0
Dollar debt translated to rand 81.0 4,511.7 388.8
Total (R`m) 81.0 5,511.7 888.8
Utilisation - Committed loan
facilities (including US$ bond and
preference shares)
Rand million - - -
US dollar million 10.0 540.0 40.0
Dollar debt translated to rand 81.0 4,374.0 324.0
Total (R`m) 81.0 4,374.0 324.0
Long-term loans per balance sheet (R`m)
Current portion of long-term loans
per balance sheet (R`m)
Total loans per balance sheet (R`m)
1 Jan 2014
to
31 Dec 2020 Total
Committed loan facilities (including US$ bond and
preference shares)
Rand million 1,500.0 3,000.0
US dollar million 2,092.4 2,707.4
Dollar debt translated to rand 16,948.5 21,930.0
Total (R`m) 18,448.5 24,930.0
Utilisation - Committed loan facilities (including
US$ bond and
preference shares)
Rand million - -
US dollar million 1,327.4 1,917.4
Dollar debt translated to rand 10,751.9 15,530.9
Total (R`m) 10,751.9 15,530.9
Long-term loans per balance sheet (R`m) 11,156.9
Current portion of long-term loans per balance sheet
(R`m) 4,374.0
Total loans per balance sheet (R`m) 15,530.9
Exchange rate: US$1 = R8.10 being the closing rate at the end of the
September 2011 quarter.
Operating and financial results
SOUTH AFRICAN RAND South Africa Region
Total
Mine
Operations Total KDC
Operating Results
Ore milled/treated
(000 tonnes) September 2011 14,770 4,327 2,805
June 2011 15,187 4,408 2,648
Year to date 44,415 12,755 7,987
Yield (grams per
tonne) September 2011 1.9 3.1 3.1
June 2011 1.9 3.2 3.2
Year to date 2.0 3.1 3.2
Gold produced
(kilograms) September 2011 28,781 13,323 8,684
June 2011 29,357 13,889 8,475
Year to date 86,784 39,996 25,328
Gold sold
(kilograms) September 2011 28,675 13,323 8,684
June 2011 29,371 13,889 8,475
Year to date 86,821 39,996 25,328
Gold price
received (Rand
per kilogram) September 2011 385,684 392,584 389,717
June 2011 326,206 328,778 327,740
Year to date 341,045 344,692
343,845
Total cash cost
(Rand per
kilogram) September 2011 192,997 235,780 227,395
June 2011 177,934 220,261 225,133
Year to date 179,768 223,352 220,033
Notional cash
expenditure
(Rand per
kilogram) September 2011 273,979 330,023 295,164
June 2011 251,790 305,501 290,289
Year to date 255,824 310,471 283,591
Operating costs
(Rand per tonne) September 2011 369 724 696
June 2011 346 697 723
Year to date 353 705 700
Financial
Results (Rand
million)
Revenue September 2011 11,059.5 5,230.4 3,384.3
June 2011 9,581.0 4,566.4 2,777.6
Year to date 29,609.9 13,786.3 8,708.9
Net operating
costs September 2011 (5,404.1) (3,131.1) (1,952.4)
June 2011 (5,124.2) (3,074.0) (1,915.4)
Year to date (15,406.7) (8,987.8) (5,588.7)
- Operating
costs September 2011 (5,450.4) (3,131.1) (1,952.4)
June 2011 (5,250.7) (3,074.0) (1,915.4)
Year to date (15,660.1) (8,987.8) (5,588.7)
- Gold inventory
change September 2011 46.3 - -
June 2011 126.5 - -
Year to date 253.4 - -
Operating profit September 2011 5,655.4 2,099.3 1,431.9
June 2011 4,456.8 1,492.4 862.2
Year to date 14,203.2 4,798.5 3,120.2
Amortisation of
mining assets September 2011 (1,339.6) (679.8) (410.1)
June 2011 (1,241.0) (665.9) (401.1)
Year to date (3,783.8) (1,994.6) (1,224.2)
Net operating
profit September 2011 4,315.8 1,419.5 1,021.8
June 2011 3,215.8 826.5 461.1
Year to date 10,419.4 2,803.9 1,896.0
Other expenses September 2011 (175.4) (67.9) (37.9)
June 2011 (157.5) (69.2) (42.2)
Year to date (459.2) (199.0) (117.6)
Profit before
royalties and
taxation September 2011 4,140.4 1,351.6 983.9
June 2011 3,058.3 757.3 418.9
Year to date 9,960.2 2,604.9 1,778.4
Royalties,
mining and
income taxation September 2011 (1,525.2) (459.8) (323.7)
June 2011 (1,043.5) (240.2) (114.5)
Year to date (3,483.5) (887.4) (575.5)
- Normal
taxation September 2011 (825.4) (169.6) (169.2)
June 2011 (447.5) (2.6) (2.6)
Year to date (1,846.0) (216.8) (215.7)
- Royalties September 2011 (304.7) (80.7) (71.5)
June 2011 (236.4) (42.3) (33.3)
Year to date (705.7) (158.3) (132.9)
- Deferred
taxation September 2011 (395.1) (209.5) (83.0)
June 2011 (359.6) (195.3) (78.6)
Year to date (931.8) (512.3) (226.9)
Profit before
non-recurring
items September 2011 2,615.2 891.8 660.2
June 2011 2,014.8 517.1 304.4
Year to date 6,476.7 1,717.5 1,202.9
Non-recurring
items September 2011 (128.4) (111.3) (90.7
June 2011 (99.5) (41.0) (23.9)
Year to date (309.7) (193.9) (133.4)
Net profit September 2011 2,486.8 780.5 569.5
June 2011 1,915.3 476.1 280.5
Year to date 6,167.0 1,523.6 1,069.5
September 2011 2,581.2 852.4 628.4
Net profit
excluding gains
and losses on
foreign exchange,
financial
instruments and
non-recurring June 2011 2,001.3 502.4 296.0
items Year to date 6,408.2 1,648.7 1,156.2
Capital
Expenditure
September 2011 (2,435.0) (1,265.8) (610.8)
June 2011 (2,141.1) (1,169.1) (544.8)
Year to date (6,541.3) (3,429.8) (1,594.1)
SOUTH AFRICAN RAND South Africa Region
Beatrix South Deep
Operating Results
Ore milled/treated
(000 tonnes) September 2011 899 623
June 2011 1,070 690
Year to date 2,877 1,891
Yield (grams per tonne)September 2011 2.9 3.2
June 2011 2.8 3.4
Year to date 2.8 3.5
Gold produced
(kilograms) September 2011 2,636 2,003
June 2011 3,048 2,366
Year to date 7,998 6,670
Gold sold (kilograms) September 2011 2,636 2,003
June 2011 3,048 2,366
Year to date 7,998 6,670
Gold price received
(Rand per kilogram) September 2011 400,493 394,608
June 2011 331,398 329,121
Year to date 348,725 343,073
Total cash cost (Rand
per kilogram) September 2011 236,002 271,842
June 2011 203,871 223,922
Year to date 222,718 236,717
Notional cash
expenditure (Rand per
kilogram) September 2011 300,228 520,369
June 2011 255,118 424,894
Year to date 283,021 445,457
Operating costs (Rand
per tonne) September 2011 699 883
June 2011 584 773
Year to date 627 844
Financial Results
(Rand million)
Revenue September 2011 1,055.7 790.4
June 2011 1,010.1 778.7
Year to date 2,789.1 2,288.3
Net operating costs September 2011 (628.3) (550.4)
June 2011 (625.2) (533.4)
Year to date (1,802.9) (1,596.2)
- Operating costs September 2011 (628.3) (550.4)
June 2011 (625.2) (533.4)
Year to date (1,802.9) (1,596.2)
- Gold inventory changeSeptember 2011 - -
June 2011 - -
Year to date - -
Operating profit September 2011 427.4 240.0
June 2011 384.9 245.3
Year to date 986.2 692.1
Amortisation of mining
assets September 2011 (127.4) (142.3)
June 2011 (139.0) (125.8)
Year to date (364.0) (406.4)
Net operating profit September 2011 300.0 97.7
June 2011 245.9 119.5
Year to date 622.2 285.7
Other expenses September 2011 (11.5) (18.5)
June 2011 (10.9) (16.1)
Year to date (33.1) (48.3)
Profit before
royalties and taxation September 2011 288.5 79.2
June 2011 235.0 103.4
Year to date 589.1 237.4
Royalties, mining and
income taxation September 2011 (103.6) (32.5)
June 2011 (86.8) (38.9)
Year to date (215.1) (96.8)
- Normal taxation September 2011 (0.4) -
June 2011 - -
Year to date (1.1) -
- Royalties September 2011 (5.3) (3.9)
June 2011 (5.1) (3.9)
Year to date (14.0) (11.4)
- Deferred taxation September 2011 (97.9) (28.6)
June 2011 (81.7) (35.0)
Year to date (200.0) (85.4)
Profit before
non-recurring items September 2011 184.9 46.7
June 2011 148.2 64.5
Year to date 374.0 140.6
Non-recurring items September 2011) (12.0) (8.6)
June 2011 (6.0) (11.1)
Year to date (30.2) (30.3)
Net profit September 2011 172.9 38.1
June 2011 142.2 53.4
Year to date 343.8 110.3
Net profit excluding
gains and losses on
foreign exchange,
financial instruments September 2011 180.6 43.4
and non-recurring June 2011 146.1 60.3
items Year to date 363.4 129.1
Capital Expenditure
September 20118) (163.1) (491.9)
June 2011 (152.4) (471.9)
Year to date (460.7) (1,375.0)
Operating and financial results
South
SOUTH AFRICAN RAND West Africa Region America
Region
Ghana Peru
Cerro
Total Tarkwa Damang Corona
Operating Results
Ore milled/treated (000)
tonnes) September 2011 6,825 5,597 1,228 1,674
June 2011 7,155 5,883 1,272 1,717
Year to date 21,033 17,283 3,750 4,973
Yield
(grams per
tonne) September 2011 1.1 1.0 1.4 1.7
June 2011 1.0 1.0 1.4 1.8
Year to date 1.1 1.0 1.4 1.9
Gold
produced
(kilograms) September 2011 7,290 5,600 1,690 2,921
June 2011 7,377 5,625 1,752 3,143
Year to date 22,241 17,012 5,229 9,426
Gold sold
(kilograms) September 2011 7,290 5,600 1,690 2,815
June 2011 7,377 5,625 1,752 3,157
Year to date 22,241 17,012 5,229 9,463
Gold price
received
(Rand per
kilogram)
September 2011 387,915 387,732 388,521 335,737
June 2011 329,375 329,387 329,338 304,846
Year to date 342,026 342,053 341,939 316,707
Total cash
cost (Rand
per
kilogram)
September 2011 139,767 137,446 147,456 111,865
June 2011 122,841 116,302 143,836 88,882
Year to date 126,361 119,157 149,799 94,959
Notional
cash
expenditure
(Rand per
kilogram) September 2011 209,506 197,036 250,828 139,370
June 2011 193,019 193,689 190,868 114,604
Year to date 204,375 195,421 233,505 124,379
Operating
costs (Rand
per tonne)
September 2011 148 138 195 173
June 2011 134 125 174 148
Year to date 142 130 196 167
Financial
Results
(Rand
million)
Revenue September 2011 2,827.9 2,171.3 656.6 945.1
June 2011 2,429.8 1,852.8 577.0 962.4
Year to date 7,607.0 5,819.0 1,788.0 2,997.0
Net
operating
costs September 2011 (931.1) (716.8) (214.3) (289.1)
June 2011 (825.0) (595.6) (229.4) (258.3)
Year to date (2,606.9) (1,888.8) (718.1) (852.4)
- Operating
costs
September 2011 (1,010.3) (771.4) (238.9) (289.6)
June 2011 (957.0) (735.5) (221.5) (254.7)
Year to date (2,978.7) (2,242.6) (736.1) (832.4)
- Gold
inventory
change September 2011 79.2 54.6 24.6 0.5
June 2011 132.0 139.9 (7.9) (3.6)
Year to date 371.8 353.8 18.0 (20.0)
Operating
profit September 2011 1,896.8 1,454.5 442.3 656.0
June 2011 1,604.8 1,257.2 347.6 704.1
Year to date 5,000.1 3,930.2 1,069.9 2,144.6
Amortisation
of mining
assets September 2011 (249.3) (188.8) (60.5) (102.6)
June 2011 (211.8) (174.6) (37.2) (102.7)
Year to date (683.5) (544.0) (139.5) (302.6)
Net
operating
profit September 2011 1,647.5 1,265.7 381.8 553.4
June 2011 1,393.0 1,082.6 310.4 601.4
Year to date 4,316.6 3,386.2 930.4 1,842.0
Other
expenses September 2011 (39.6) (27.2) (12.4) (49.9)
June 2011 (56.0) (39.6) (16.4) (22.2)
Year to date (126.5) (88.6) (37.9) (95.5)
Profit
before
royalties
and
taxation September 2011 1,607.9 1,238.5 369.4 503.5
June 2011 1,337.0 1,043.0 294.0 579.2
Year to date 4,190.1 3,297.6 892.5 1,746.5
Royalties,
mining and
income
taxation September 2011 (594.6) (464.5) (130.1) (229.6)
June 2011 (458.6) (359.9) (98.7) (202.9)
Year to date (1,467.3) (1,159.6) (307.7) (614.3)
- Normal
taxation September 2011 (428.4) (348.0) (80.4) (227.4)
June 2011 (259.7) (209.4) (50.3) (185.2)
Year to date (1,008.3) (849.3) (159.0) (620.9)
- Royalties September 2011 (141.1) (108.3) (32.8) (30.7)
June 2011 (122.1) (93.1) (29.0) (30.4)
Year to date (333.7) (255.3) (78.4) (81.0)
- Deferred
taxation September 2011 (25.1) (8.2) (16.9) 28.5
June 2011 (76.8) (57.4) (19.4) 12.7
Year to date (125.3) (55.0) (70.3) 87.6
Profit
before
non-recur-
ring items September 2011 1,013.3 774.0 239.3 273.9
June 2011 878.4 683.1 195.3 376.3
Year to date 2,722.8 2,138.0 584.8 1,132.2
Non-recurr-
ing items September 2011 (16.6) (4.3) (12.3) -
June 2011 (42.3) (8.5) (33.8) (0.2)
Year to date (84.9) (36.7) (48.2) (1.5)
Net profit September 2011 996.7 769.7 227.0 273.9
June 2011 836.1 674.6 161.5 376.1
Year to date 2,637.9 2,101.3 536.6 1,130.7
Net profit
excluding
gains and
losses on
foreign
exchange,
financial
instruments
and non- September 2011 1,011.8 775.1 236.7 277.3
recurring June 2011 881.5 690.2 191.3 376.3
items Year to date 2,719.3 2,139.3 580.0 1,135.2
Capital
Expenditure September 2011 (517.0) (332.0) (185.0) (117.5)
June 2011 (466.9) (354.0) (112.9) (105.5)
Year to date (1,566.8) (1,081.9) (484.9) (340.0)
SOUTH AFRICAN RAND Australasia Region #
Australia
Total St Ives
Agnew
Operating Results
Ore milled/treated (000
tonnes) September 2011 1,944 1,682 262
June 2011 1,907 1,676 231
Year to date 5,654 4,977 677
Yield (grams per tonne) September 2011 2.7 2.1 6.4
June 2011 2.6 2.0 6.8
Year to date 2.7 2.2 6.5
Gold produced
(kilograms) September 2011 5,247 3,577 1,670
June 2011 4,948 3,379 1,569
Year to date 15,121 10,703 4,418
Gold sold (kilograms) September 2011 5,247 3,577 1,670
June 2011 4,948 3,379 1,569
Year to date 15,121 10,703 4,418
Gold price received
(Rand per kilogram)
September 2011 391,862 388,762 398,503
June 2011 327,890 327,079 329,637
Year to date 345,189 342,558 351,562
Total cash cost (Rand
per kilogram)
September 2011 201,849 221,638 159,461
June 2011 198,080 221,367 147,929
Year to date 196,111 211,716 158,307
Notional cash
expenditure (Rand per
kilogram) September 2011 296,188 317,585 250,359
June 2011 275,788 298,935 225,940
Year to date 268,891 279,071 244,228
Operating costs (Rand
per tonne)
September 2011 524 447 1,020
June 2011 506 438 996
Year to date 506 434 1,033
Financial Results (Rand
million)
Revenue September 2011 2,056.1 1,390.6 665.5
June 2011 1,622.4 1,105.2 517.2
Year to date 5,219.6 3,666.4 1,553.2
Net operating costs September 2011 (1,052.8) (791.2) (261.6)
June 2011 (966.9) (740.2) (226.7)
Year to date (2,959.6) (2,267.0) (692.6)
- Operating costs
September 2011 (1,019.4) (752.1) (267.3)
June 2011 (965.0) (734.9) (230.1)
Year to date (2,861.2) (2,162.0) (699.2)
- Gold inventory change September 2011 (33.4) (39.1) 5.7
June 2011 (1.9) (5.3) 3.4
Year to date (98.4) (105.0) 6.6
Operating profit September 2011 1,003.3 599.4 403.9
June 2011 655.5 365.0 290.5
Year to date 2,260.0 1,399.4 860.6
Amortisation of mining
assets September 2011 (307.9)
June 2011 (260.6)
Year to date (803.1)
Net operating profit September 2011 695.4
June 2011 394.9
Year to date 1,456.9
Other expenses September 2011 (18.0)
June 2011 (10.1)
Year to date (38.2)
Profit before royalties
and taxation September 2011 677.4
June 2011 384.8
Year to date 1,418.7
Royalties, mining and
income taxation September 2011 (241.2)
June 2011 (141.8)
Year to date (514.5)
- Normal taxation September 2011 -
June 2011 -
Year to date -
- Royalties September 2011 (52.2)
June 2011 (41.6)
Year to date (132.7)
- Deferred taxation September 2011 (189.0)
June 2011 (100.2)
Year to date (381.8)
Profit before
non-recurring items September 2011 436.2
June 2011 243.0
Year to date 904.2
Non-recurring items September 2011 (0.5)
June 2011 (16.0)
Year to date (29.4)
Net profit September 2011 435.7
June 2011 227.0
Year to date 874.8
September 2011 439.7
Net profit excluding
gains and losses on
foreign exchange,
financial instruments June 2011 241.1
and non-recurring items Year to date 905.0
Capital Expenditure September 2011 (534.7) (383.9) (150.8)
June 2011 (399.6) (275.2) (124.4)
Year to date (1,204.7) (824.9) (379.8)
# As a significant portion of the acquisition price was allocated to
tenements of St Ives and Agnew based on endowment ounces and also as
these two Australian operations are entitled to transfer and then off-set
tax losses from one company to another, it is not meaningful to split the
income statement below operating profit.
Operating and financial results
UNITED STATES DOLLARS
South Africa Region
Total
Mine
Operations Total KDC
Operating Results
Ore milled/treated
(000 tonnes) September 2011 14,770 4,327 2,805
June 2011 15,187 4,408 2,648
Year to date 44,415 12,755 7,987
Yield (ounces per
tonne) September 2011 0.063 0.099 0.100
June 2011 0.062 0.101 0.103
Year to date 0.063 0.101 0.102
Gold produced (000
ounces) September 2011 925.3 428.3 279.2
June 2011 943.8 446.5 272.5
Year to date 2,790.2 1,286.0 814.3
Gold sold (000 ounces) September 2011 921.9 428.3 279.2
June 2011 944.3 446.5 272.5
Year to date 2,791.4 1,286.0 814.3
Gold price received
(dollars per ounce) September 2011 1,702 1,732 1,719
June 2011 1,496 1,508 1,504
Year to date 1,528 1,545 1,541
Total cash cost
(dollars per ounce) September 2011 851 1,040 1,003
June 2011 816 1,010 1,033
Year to date 806 1,001 986
Notional cash
expenditure (dollars
per ounce) September 2011 1,209 1,456
1,302
June 2011 1,155 1,401
1,332
Year to date 1,147 1,391 1,271
Operating costs
(dollars per tonne) September 2011 52 103 99
June 2011 51 103 107
Year to date 51 102 101
Financial Results ($
million)
Revenue September 2011 1,570.3 742.9 480.9
June 2011 1,411.3 672.0 409.0
Year to date 4,266.6 1,986.5 1,254.9
Net operating costs September 2011 (766.1) (443.8) (276.7)
June 2011 (754.9) (452.6) (282.0)
Year to date (2,220.0) (1,295.1) (805.3)
- Operating costs September 2011 (772.5) (443.8) (276.7)
June 2011 (773.5) (452.6) (282.0)
Year to date (2,256.5) (1,295.1) (805.3)
- Gold inventory changeSeptember 2011 6.4 - -
June 2011 18.6 - -
Year to date 36.5 - -
Operating profit September 2011 804.2 299.1 204.2
June 2011 656.4 219.4 127.0
Year to date 2,046.6 691.4 449.6
Amortisation of mining
assets September 2011 (189.9) (96.3) (58.1)
June 2011 (182.9) (98.1) (59.2)
Year to date (545.2) (287.4) (176.4)
Net operating profit September 2011 614.3 202.8
146.1
June 2011 473.5 121.3 67.9
Year to date 1,501.4 404.0 273.2
Other expenses September 2011 (24.9) (9.6) (5.3)
June 2011 (23.2) (10.2) (6.2)
Year to date (66.2) (28.7) (16.9)
Profit before
royalties and taxation September 2011 589.4 193.2 140.8
June 2011 450.4 111.1 61.7
Year to date 1,435.2 375.3 256.3
Royalties, mining and
income taxation September 2011 (217.3) (65.9) (46.5)
June 2011 (153.6) (35.3) (16.9)
Year to date (501.9) (127.9) (82.9)
- Normal taxation September 2011 (117.8) (24.5) (24.5)
June 2011 (66.2) (0.5) (0.5)
Year to date (266.0) (31.2) (31.1)
- Royalties September 2011 (43.4) (11.5) (10.2)
June 2011 (34.7) (6.2) (4.9)
Year to date (101.7) (22.8) (19.1)
- Deferred taxation September 2011 (56.2) (29.8) (11.8)
June 2011 (52.6) (28.6) (11.6)
Year to date (134.3) (73.8) (32.7)
Profit before
non-recurring items September 2011 372.0 127.4 94.2
June 2011 296.8 75.8 44.7
Year to date 933.2 247.5 173.3
Non-recurring items September 2011 (18.4) (16.0) (13.0)
June 2011 (14.6) (6.0) (3.5)
Year to date (44.6) (27.9) (19.2)
Net profit September 2011 353.6 111.3 81.2
June 2011 282.2 69.8 41.2
Year to date 888.6 219.5 154.1
September 2011 367.1 121.8 89.9
Net profit excluding
gains and losses on
foreign
exchange, financial
instruments and
non-recurring June 2011 294.7 73.6 43.5
items Year to date 923.4 237.6 166.6
Capital Expenditure September 2011 (345.8) (179.7) (86.8)
June 2011 (315.3) (172.0) (80.1)
Year to date (942.6) (494.2) (229.7)
South Africa Region
Beatrix South Deep
Operating Results
Ore milled/treated (000 tonnes) September 2011 899 623
June 2011 1,070 690
Year to date 2,877 1,891
Yield (ounces per tonne) September 2011 0.094 0.103
June 2011 0.092 0.110
Year to date 0.089 0.113
Gold produced (000 ounces) September 2011 84.7 64.4
June 2011 98.0 76.1
Year to date 257.1 214.4
Gold sold (000 ounces) September 2011 84.7 64.4
June 2011 98.0 76.1
Year to date 257.1 214.4
Gold price received (dollars per
ounce) September 2011 1,767 1,741
June 2011 1,520 1,510
Year to date 1,563 1,538
Total cash cost (dollars per ounce) September 2011 1,041 1,199
June 2011 935 1,027
Year to date 998 1,061
Notional cash expenditure (dollars
per ounce) September 2011 1,325 2,296
June 2011 1,170 1,949
Year to date 1,268 1,996
Operating costs (dollars per tonne) September 2011 99 125
June 2011 86 114
Year to date 90 122
Financial Results ($ million)
Revenue September 2011 150.0 112.0
June 2011 148.3 114.7
Year to date 401.9 329.7
Net operating costs September 2011 (89.1) (78.0)
June 2011 (92.0) (78.6)
Year to date (259.8) (230.0)
- Operating costs September 2011 (89.1) (78.0)
June 2011 (92.0) (78.6)
Year to date (259.8) (230.0)
- Gold inventory change September 2011 - -
June 2011 - -
Year to date - -
Operating profit September 2011 60.9 34.0
June 2011 56.3 36.1
Year to date 142.1 99.7
Amortisation of mining assets September 2011 (18.0) (20.2)
June 2011 (20.4) (18.6)
Year to date (52.4) (58.6)
Net operating profit September 2011 42.9 13.9
June 2011 35.9 17.5
Year to date 89.7 41.2
Other expenses September 2011 (1.7) (2.6)
June 2011 (1.6) (2.4)
Year to date (4.8) (7.0)
Profit before royalties and taxation September 2011 41.2
11.3
June 2011 34.3 15.1
Year to date 84.9 34.2
Royalties, mining and income
taxation September 2011 (14.8) (4.5)
June 2011 (12.7) (5.7)
Year to date (31.0) (13.9)
- Normal taxation September 2011 (0.1) -
June 2011 - -
Year to date (0.2) -
- Royalties September 2011 (0.7) (0.5)
June 2011 (0.7) (0.6)
Year to date (2.0) (1.6)
- Deferred taxation September 2011 (14.0) (4.0)
June 2011 (11.9) (5.1)
Year to date (28.8) (12.3)
Profit before non-recurring items September 2011 26.4 6.8
June 2011 21.6 9.4
Year to date 53.9 20.3
Non-recurring items September 2011 (1.8) (1.3)
June 2011 (0.9) (1.6)
Year to date (4.4) (4.4)
Net profit September 2011 24.6 5.5
June 2011 20.7 7.8
Year to date 49.5 15.9
September 2011 25.8 6.1
Net profit excluding gains and
losses on foreign
exchange, financial instruments and
non-recurring June 2011 21.3 8.8
items Year to date 52.4 18.6
Capital Expenditure September 2011 (23.1) (69.8)
June 2011 (22.5) (69.4)
Year to date (66.4) (198.1)
Average exchange rates were US$1 = R7.05 and US$1 = R6.78 for the
September 2011 and June 2011 quarters respectively.
The Australian dollar exchange rates were A$1 = R7.44 and A$1 = R7.18 for
the September 2011 and the June 2011 quarters respectively.
Operating and financial results
UNITED STATES DOLLARS West Africa Region South
America
Region
Ghana Peru
Cerro
Total Tarkwa Damang Corona
Operating Results
Ore
milled/treated September 2011 6,825 5,597 1,228 1,674
(000 tonnes) June 2011 7,155 5,883 1,272 1,717
Year to date 21,033 17,283 3,750 4,973
Yield (ounces
per tonne) September 2011 0.034 0.032 0.044 0.056
June 2011 0.033 0.031 0.044 0.059
Year to date 0.034 0.032 0.045 0.061
Gold produced
(000 ounces) September 2011 234.4 180.0 54.3 93.9
June 2011 237.2 180.8 56.3 101.0
Year to date 715.0 546.9 168.1 303.1
Gold sold (000
ounces) September 2011 234.4 180.0 54.3 90.5
June 2011 237.2 180.8 56.3 101.5
Year to date 715.0 546.9 168.1 304.2
Gold price
received September 2011 1,711 1,711 1,714 1,481
(dollars per
ounce) June 2011 1,511 1,511 1,511 1,398
Year to date 1,533 1,533 1,532 1,419
Total cash cost September 2011 617 606 651 494
(dollars per
ounce) June 2011 564 534 660 408
Year to date 566 534 671 426
Notional cash
expenditure September 2011 924 869 1,107 615
(dollars per
ounce) June 2011 885 889 876 526
Year to date 916 867 1,047 557
Operating costs September 2011 21 20 28 25
(dollars per
tonne) June 2011 20 18 26 22
Year to date 20 19 28 24
Financial
Results ($
million)
Revenue September 2011 401.5 308.3 93.2 133.5
June 2011 358.1 273.0 85.0 142.2
Year to date 1,096.1 838.5 257.6 431.8
Net operating
costs September 2011 (132.1) (101.9) (30.3) (40.9)
June 2011 (121.7) (87.8) (33.9) (38.2)
Year to date (375.6) (272.2) (103.5) (122.8)
- Operating
costs September 2011 (143.1) (109.3) (33.8) (41.0)
June 2011 (141.2) (108.4) (32.8) (37.6)
Year to date (429.2) (323.1) (106.1) (119.9)
- Gold
inventory
change September 2011 11.0 7.5 3.5 0.1
June 2011 19.5 20.7 (1.1) (0.6)
Year to date 53.6 51.0 2.6 (2.9)
Operating profit September 2011 269.4 206.4 63.0 92.6
June 2011 236.4 185.3 51.1 104.0
Year to date 720.5 566.3 154.2 309.0
Amortisation of
mining assets September 2011 (35.3) (26.7) (8.6) (14.6)
June 2011 (31.2) (25.8) (5.5) (15.1)
Year to date (98.5) (78.4) (20.1) (43.6)
Net operating
profit September 2011 234.1 179.7 54.4 78.0
June 2011 205.1 159.5 45.6 88.8
Year to date 622.0 487.9 134.1 265.4
Other expenses September 2011 (5.6) (3.9) (1.8)
(7.1)
June 2011 (8.2) (5.8) (2.4) (3.3)
Year to date (18.2) (12.8) (5.5) (13.8)
Profit before
royalties and September 2011 228.5 175.9 52.6 71.0
taxation June 2011 196.9 153.7 43.2 85.6
Year to date 603.8 475.2 128.6 251.7
September 2011 (84.5) (66.0) (18.5) (32.6)
Royalties,
mining and
income
taxation
June 2011 (67.5) (53.0) (14.5) (29.9)
Year to date (211.4) (167.1) (44.3) (88.5)
- Normal
taxation September 2011 (61.0) (49.5) (11.5) (32.3)
June 2011 (38.4) (31.0) (7.4) (27.4)
Year to date (145.3) (122.4) (22.9) (89.5)
- Royalties September 2011 (20.1) (15.4) (4.7) (4.4)
June 2011 (17.9) (13.6) (4.2) (4.5)
Year to date (48.1) (36.8) (11.3) (11.7)
- Deferred
taxation September 2011 (3.5) (1.1) (2.3) 4.0
June 2011 (11.2) (8.3) (2.9) 1.9
Year to date (18.1) (7.9) (10.1) 12.6
Profit before September 2011 143.9 109.9 34.1 38.3
non-recurring
items June 2011 129.4 100.7 28.7 55.7
Year to date 392.3 308.1 84.3 163.1
Non-recurring
items September 2011 (2.3) (0.6) (1.7) -
June 2011 (6.2) (1.3) (4.9) -
Year to date (12.2) (5.3) (6.9) (0.2)
Net profit September 2011 141.6 109.3 32.3 38.3
June 2011 123.2 99.4 23.8 55.7
Year to date 380.1 302.8 77.3 162.9
Net profit
excluding gains
and September 2011 143.6 110.0 33.7 38.9
losses on
foreign
exchange,
June 2011 129.8 101.7 28.1 55.7
financial
instruments and
Year to date 391.8 308.3 83.6 163.6
non-recurring
items
Capital
Expenditure September 2011 73.2) (46.9) (26.3) (16.7)
June 2011 (69.1) (52.3) (16.8) (15.6)
Year to date (225.8) (155.9) (69.9) (49.0)
UNITED STATES DOLLARS Australasia Region
Australia #
Total St Ives Agnew
Operating Results
Ore milled/treated September 2011 1,944 1,682 262
(000 tonnes) June 2011 1,907 1,676 231
Year to date 5,654 4,977 677
Yield (ounces per tonne)September 2011 0.087 0.068 0.205
June 2011 0.083 0.065 0.218
Year to date 0.086 0.069 0.210
Gold produced (000
ounces) September 2011 168.7 115.0 53.7
June 2011 159.1 108.7 50.4
Year to date 486.2 344.1 142.0
Gold sold (000 ounces) September 2011 168.7 115.0 53.7
June 2011 159.1 108.7 50.4
Year to date 486.2 344.1 142.0
Gold price received September 2011 1,729 1,715 1,758
(dollars per ounce) June 2011 1,504 1,500 1,512
Year to date 1,547 1,535 1,576
Total cash cost September 2011 891 978 704
(dollars per ounce) June 2011 909 1,015 679
Year to date 879 949 709
Notional cash
expenditure September 2011 1,307 1,401 1,105
(dollars per ounce) June 2011 1,265 1,371 1,037
Year to date 1,205 1,251 1,095
Operating costs September 2011 74 63 145
(dollars per tonne) June 2011 75 65 147
Year to date 73 63 149
Financial Results ($
million)
Revenue September 2011 292.3 197.5 94.8
June 2011 239.0 163.1 75.9
Year to date 752.1 528.3 223.8
Net operating costs September 2011 (149.3) (112.2) (37.1)
June 2011 (142.5) (109.1) (33.4)
Year to date (426.5) (326.7) (99.8)
- Operating costs September 2011 (144.6) (106.6) (37.9)
June 2011 (142.1) (108.2) (33.9)
Year to date (412.3) (311.5) (100.7)
- Gold inventory change September 2011 (4.7) (5.5) 0.9
June 2011 (0.4) (0.9) 0.5
Year to date (14.2) (15.1) 1.0
Operating profit September 2011 143.0 85.3 57.7
June 2011 96.5 54.0 42.6
Year to date 325.6 201.6 124.0
Amortisation of mining
assets September 2011 (43.7)
June 2011 (38.4)
Year to date (115.7)
Net operating profit September 2011 99.3
June 2011 58.2
Year to date 209.9
Other expenses September 2011 (2.6)
June 2011 (1.5)
Year to date (5.5)
Profit before royalties
and September 2011 96.7
taxation June 2011 56.7
Year to date 204.4
September 2011 (34.3)
Royalties, mining and
income
taxation
June 2011 (20.9)
Year to date (74.1)
- Normal taxation September 2011 -
June 2011 -
Year to date -
- Royalties September 2011 (7.4)
June 2011 (6.1)
Year to date (19.1)
- Deferred taxation September 2011 (26.9)
June 2011 (14.8)
Year to date (55.0)
Profit before September 2011 62.4
non-recurring items June 2011 35.8
Year to date 130.3
Non-recurring items September 2011 -
June 2011 (2.4)
Year to date (4.2)
Net profit September 2011 62.3
June 2011 33.4
Year to date 162.0
Net profit excluding
gains and September 2011 62.8
losses on foreign
exchange,
June 2011 35.5
financial instruments
and
Year to date 130.4
non-recurring items
Capital Expenditure September 2011 (76.2) (54.8) (21.4)
June 2011 (58.6) (40.3) (18.3)
Year to date (173.6) (118.9) (54.7)
UNITED STATES DOLLARS AUSTRALIAN
DOLLARS
Australasia
Region #
Total St Ives Agnew
Operating Results
Ore milled/treated September 2011 1,944 1,682 262
(000 tonnes) June 2011 1,907 1,676 231
Year to date 5,654 4,977 677
Yield (ounces per tonne) September 2011 0.087 0.068 0.205
June 2011 0.083 0.065 0.218
Year to date 0.086 0.069 0.210
Gold produced (000 ounces) September 2011 168.7 115.0 53.7
June 2011 159.1 108.7 50.4
Year to date 486.2 344.1 142.0
Gold sold (000 ounces) September 2011 168.7 115.0 53.7
June 2011 159.1 108.7 50.4
Year to date 486.2 344.1 142.0
Gold price received September 2011 1,638 1,625 1,666
(dollars per ounce) June 2011 1,420 1,417 1,428
Year to date 1,489 1,478 1,517
Total cash cost September 2011 844 927 667
(dollars per ounce) June 2011 858 959 641
Year to date 846 913 683
Notional cash expenditure September 2011 1,238 1,328 1,047
(dollars per ounce) June 2011 1,195 1,295 979
Year to date 1,160 1,204 1,054
Operating costs September 2011 70 60 137
(dollars per tonne) June 2011 70 61 139
Year to date 70 60 143
Financial Results ($ million)
Revenue September 2011 277.7 187.5 90.2
June 2011 226.0 153.8 72.3
Year to date 723.9 508.5 215.4
Net operating costs September 2011 (141.6) (106.3) (35.3)
June 2011 (134.7) (103.1) (31.6)
Year to date (410.5) (314.4) (96.1)
- Operating costs September 2011 (137.1) (101.1) (36.1)
June 2011 (134.5) (102.4) (32.1)
Year to date (396.8) (299.9) (97.0)
- Gold inventory change September 2011 (4.5) (5.3) 0.8
June 2011 (0.2) (0.6) 0.5
Year to date (13.7) (14.6)
0.9
Operating profit September 2011 136.2 81.2 55.0
June 2011 91.4 50.7 40.7
Year to date 313.5 194.1 119.4
Amortisation of mining assetsSeptember 2011 (41.6)
June 2011 (36.3)
Year to date (111.4)
Net operating profit September 2011 94.6
June 2011 55.0
Year to date 202.1
Other expenses September 2011 (2.5)
June 2011 (1.4)
Year to date (5.3)
Profit before royalties and September 2011 92.1
taxation June 2011 53.6
Year to date 196.8
September 2011 (32.8)
Royalties, mining and income
taxation
June 2011 (19.8)
Year to date (71.4)
- Normal taxation September 2011 -
June 2011 -
Year to date -
- Royalties September 2011 (7.0)
June 2011 (5.8)
Year to date (18.4)
- Deferred taxation September 2011 (25.8)
June 2011 (14.0)
Year to date (53.0)
Profit before September 2011 59.3
non-recurring items June 2011 33.9
Year to date 125.4
Non-recurring items September 2011 (0.1)
June 2011 (2.2)
Year to date (4.1)
Net profit September 2011 59.2
June 2011 31.6
Year to date 121.3
Net profit excluding gains
and September 2011 59.9
losses on foreign exchange,
June 2011 33.6
financial instruments and
Year to date 125.5
non-recurring items
Capital Expenditure September 2011 (72.6) (52.2) (20.4)
June 2011 (55.9) (38.5) (17.4)
Year to date (167.1) (114.4) (52.7)
# As a significant portion of the acquisition price was allocated to
tenements of St Ives and Agnew on endowment ounces and also as these two
Australian operations are entitled to transfer and then off-set tax
losses from one company to another, it is not meaningful to split the
income statement below operating profit.
Figures may not add as they are rounded independently.
Total cash cost
Gold Industry Standards Basis
Figures are in South African rand millions unless otherwise stated
South Africa
Region
Total
Mine
Operations Total KDC
Operating costs(1) Sept 2011 (5,450.4) (3,131.1) (1,952.4)
June 2011 (5,250.7) (3,074.0) (1,915.4)
Year to date (15,660.1) (8,987.8) (5,588.7)
Gold-in-process and Sept 2011 34.1 - -
inventory change* June 2011 114.7 - -
Year to date 224.4 - -
Less: Sept 2011 (26.4) (17.2) (12.4)
Rehabilitation costs June 2011 (27.3) (17.3) (12.4)
Year to date (77.8) (51.8) (37.2)
General and admin Sept 2011 (160.4) (53.3) (36.8)
June 2011 (119.0) (39.8) (28.3)
Year to date (456.0) (161.1) (111.4)
Plus: Sept 2011 (304.7) (80.7) (71.5)
Royalties June 2011 (236.4) (42.3) (33.3)
Year to date (705.7) (158.3) (132.9)
TOTAL CASH COST (2) Sept 2011 (5,534.2) (3,141.3) (1,974.7)
June 2011 (5,226.1) (3,059.2) (1,908.0)
Year to date (15,607.6) (8,933.2) (5,573.0)
Plus: Sept 2011 (1,327.4) (679.8) (410.1)
Amortisation* June 2011 (1,229.2) (665.9) (401.1)
Year to date (3,754.8) (1,994.6) (1,224.2)
Rehabilitation Sept 2011 (26.4) (17.2) (12.4)
June 2011 (27.3) (17.3) (12.4)
Year to date (77.8) (51.8) (37.2)
TOTAL PRODUCTION Sept 2011 (6,888.0) (3,838.3) (2,397.2)
COST (3) June 2011 (6,482.6) (3,742.4) (2,321.5)
Year to date (19,440.2) (10,979.6) (6,834.4)
Gold sold Sept 2011 921.9 428.3 279.2
- thousand ounces June 2011 944.3 446.5 272.5
Year to date 2,791.4 1,286.0 814.3
TOTAL CASH COST Sept 2011 851 1,040 1,003
- US$/oz June 2011 816 1,010 1,033
Year to date 806 1,001 986
TOTAL CASH COST Sept 2011 192,997 235,780 227,395
- R/kg June 2011 177,934 220,261 225,133
Year to date 179,768 223,352 220,033
Sept 2011 1,060 1,271 1,218
TOTAL PRODUCTION
COST - US$/oz June 2011 1,013 1,236 1,257
Year to date 1,004 1,230 1,209
Sept 2011 240,210 288,096 279,048
TOTAL PRODUCTION
COST - R/kg June 2011 220,714 269,451 273,923
Year to date 223,911 274,517 269,836
South Africa Region
South
Beatrix Deep
Total
Operating costs(1) Sept 2011 (628.3) (550.4)
(1,010.3)
June 2011 (625.2) (533.4) (957.0)
Year to date (1,802.9) (1,596.2) (2,978.7)
Gold-in-process and Sept 2011 - - 58.3
inventory change* June 2011 - - 107.1
Year to date - - 298.8
Less: Sept 2011 (3.5) (1.3) (3.7)
Rehabilitation costs June 2011 (3.6) (1.3) (4.8)
Year to date (10.7) (3.9) (10.1)
General and admin Sept 2011 (8.0) (8.5) (70.5)
June 2011 (5.3) (6.2) (61.0)
Year to date (24.9) (24.8) (193.1)
Plus: Sept 2011 (5.3) (3.9) (141.1)
Royalties June 2011 (5.1) (3.9) (122.1)
Year to date (14.0) (11.4) (333.7)
TOTAL CASH COST (2) Sept 2011 (622.1) (544.5) (1,018.9)
June 2011 (621.4) (529.8) (906.2)
Year to date (1,781.3) (1,578.9) (2,810.4)
Plus: Sept 2011 (127.4) (142.3) (228.4)
Amortisation* June 2011 (139.0) (125.8) (186.9)
Year to date (364.0) (406.4) (610.5)
Rehabilitation Sept 2011 (3.5) (1.3) (3.7)
June 2011 (3.6) (1.3) (4.8)
Year to date (10.7) (3.9) (10.1)
TOTAL PRODUCTION Sept 2011 (753.0) (688.1) (1,251.0)
COST (3) June 2011 (764.0) (656.9) (1,097.9)
Year to date (2,156.0) (1,989.2) (3,431.0)
Gold sold Sept 2011 84.7 64.4 234.4
- thousand ounces June 2011 98.0 76.1 237.2
Year to date 257.1 214.4 715.0
TOTAL CASH COST Sept 2011 1,041 1,199 617
- US$/oz June 2011 935 1,027 564
Year to date 998 1,061 566
TOTAL CASH COST Sept 2011 236,002 271,842 139,797
- R/kg June 2011 203,871 223,922 122,841
Year to date 222,718 236,717 126,361
Sept 2011 1,260 1,516 757
TOTAL PRODUCTION
COST - US$/oz June 2011 1,150 1,274 683
Year to date 1,208 1,337 691
Sept 2011 285,660 343,535 171,605
TOTAL PRODUCTION
COST - R/kg June 2011 250,656 277,642 148,827
Year to date 269,567 298,231 154,265
West Africa Region South
America
Region
Ghana Peru
Cerro
Tarkwa Damang Corona
Operating costs(1) Sept 2011 (771.4) (238.9) (289.6)
June 2011 (735.5) (221.5) (254.7)
Year to date (2,242.6) (736.1) (832.4)
Gold-in-process and Sept 2011 42.6 15.7 0.2
inventory change* June 2011 115.7 (8.6) 8.9
Year to date 288.8 10.0 (2.5)
Less: Sept 2011 (3.2) (0.5) (0.9)
Rehabilitation costs June 2011 (4.2) (0.6) (0.8)
Year to date (8.5) (1.6) (2.6)
General and admin Sept 2011 (64.2) (6.3) (4.3)
June 2011 (54.5) (6.5) 5.2
Year to date (173.5) (19.6) (14.7)
Plus: Sept 2011 (108.3) (32.8) (30.7)
Royalties June 2011 (93.1) (29.0)
(30.4)
Year to date (255.3) (78.4) (81.0)
TOTAL CASH COST (2) Sept 2011 (769.7) (249.2) (314.9)
June 2011 (654.2) (252.0) (280.6)
Year to date (2,027.1) (783.3) (898.6)
Plus: Sept 2011 (176.8) (51.6) (102.3)
Amortisation* June 2011 (150.4) (36.5) (115.2)
Year to date (479.0) (131.5) (320.1)
Rehabilitation Sept 2011 (3.2) (0.5) (0.9)
June 2011 (4.2) (0.6) (0.8)
Year to date (8.5) (1.6) (2.6)
TOTAL PRODUCTION Sept 2011 (949.7) (301.3) (418.1)
COST (3) June 2011 (808.8) (289.1) (396.6)
Year to date (2,514.6) (916.4) (1,221.3)
Gold sold Sept 2011 180.0 54.3 90.5
- thousand ounces June 2011 180.8 56.3 101.5
Year to date 546.9 168.1 304.2
TOTAL CASH COST Sept 2011 606 651 494
- US$/oz June 2011 534 660 408
Year to date 534 671 426
TOTAL CASH COST Sept 2011 137,446 147,456 111,865
- R/kg June 2011 116,302 143,836 88,882
Year to date 119,157 149,799 94,959
Sept 2011 748 787 655
TOTAL PRODUCTION
COST - US$/oz June 2011 660 757 576
Year to date 662 785 578
Sept 2011 169,589 178,284 148,526
TOTAL PRODUCTION
COST - R/kg June 2011 143,787 165,011 125,626
Year to date 147,813 175,253 129,061
Australasia Region
Australia
Total St Ives Agnew
Operating costs(1) Sept 2011 (1,019.4) (752.1) (267.3)
June 2011 (965.0) (734.9) (230.1)
Year to date (2,861.2) (2,162.0) (699.2)
Gold-in-process and Sept 2011 (24.4) (28.8) 4.4
inventory change* June 2011 (1.3) (3.9) 2.6
Year to date (71.9) (77.0) 5.1
Less: Sept 2011 (4.6) (3.7) (0.9)
Rehabilitation costs June 2011 (4.4) (3.5) (0.9)
Year to date (13.3) (10.7) (2.6)
General and admin Sept 2011 (32.3) (19.1) (13.2)
June 2011 (23.4) (15.3) (8.1)
Year to date (87.1) (54.6) (32.5)
Plus: Sept 2011 (52.2) (34.7) (17.5)
Royalties June 2011 (41.6) (28.0) (13.6)
Year to date (132.7) (92.3) (40.4)
TOTAL CASH COST (2) Sept 2011 (1,059.1) (792.8) (266.3)
June 2011 (980.1) (748.0) (232.1)
Year to date (2,965.4) (2,266.0) (699.4)
Plus: Sept 2011 (316.9)
Amortisation* June 2011 (261.2)
Year to date (829.6)
Rehabilitation Sept 2011 (4.6)
June 2011 (4.4)
Year to date (13.3)
TOTAL PRODUCTION Sept 2011 (1,380.6)
COST (3) June 2011 (1,245.7)
Year to date (3,808.3)
Gold sold Sept 2011 168.7 115.0 53.7
- thousand ounces June 2011 159.1 108.7 50.4
Year to date 486.2 344.1 142.0
TOTAL CASH COST Sept 2011 891 978 704
- US$/oz June 2011 909 1,015 679
Year to date 879 949 709
TOTAL CASH COST Sept 2011 201,849 221,638 159,461
- R/kg June 2011 198,080 221,367 147,929
Year to date 196,111 211,716 158,307
Sept 2011 1,161
TOTAL PRODUCTION
COST - US$/oz June 2011 1,155
Year to date 1,129
Sept 2011 263,126
TOTAL PRODUCTION
COST - R/kg June 2011 251,758
Year to date 251,856
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 = R7.05 and US$1 = R6.78 for the
September 2011 and June 2011 quarters respectively.
Capital expenditure
Figures are in South African rand millions unless otherwise stated
South Africa Region
Total
Group
Total KDC
Sustaining capital Sept 2011 (1,244.4) (206.8) (156.8)
June 2011 (1,009.9) (151.0) (108.9)
Year to date (3,237.4) (468.5) (324.2)
Ore reserve Sept 2011 (567.1) (567.1) (454.0)
development June 2011 (546.2) (546.2) (435.9)
Year to date (1,586.3) (1,586.3) (1,269.9)
Sept 2011 (509.2) (491.9) -
Project capital #
June 2011 (622.4) (471.9) -
Year to date (1,647.5) (1,375.0) -
Brownfields Sept 2011 (132.6) - -
exploration June 2011 (106.5) - -
Year to date (335.7) - -
Total capital Sept 2011 (2,453.3) (1,265.8) (610.8)
expenditure June 2011 (2,285.0) (1,169.1) (544.8)
Year to date (6,806.9) (3,429.8) (1,594.1)
South Africa Region
South
Beatrix Deep Total
Sustaining capital Sept 2011 (50.0) - (481.1)
June 2011 (42.1) - (439.1)
Year to date (144.3) - (1,475.0)
Ore reserve Sept 2011 (113.1) - -
development June 2011 (110.3) - -
Year to date (316.4) - -
Sept 2011 - (491.9) -
Project capital #
June 2011 - (471.9) -
Year to date - (1,375.0) -
Brownfields Sept 2011 - - (35.9)
exploration June 2011 - - (27.8)
Year to date - - (91.8)
Total capital Sept 2011 (163.1) (491.9) (517.0)
expenditure June 2011 (152.4) (471.9) (466.9)
Year to date (460.7) (1,375.0) (1,566.8)
West Africa Region South
America
Region
Ghana Peru
Cerro
Tarkwa Damang Corona
Sustaining capital Sept 2011 (332.0) (149.1) (110.9)
June 2011 (354.0) (85.1) (98.1)
Year to date (1,081.9) (393.1) (322.4)
Ore reserve Sept 2011 - - -
development June 2011 - - -
Year to date - - -
Sept 2011 - - (6.6)
Project capital #
June 2011 - - (7.4)
Year to date - - (17.6)
Brownfields Sept 2011 - (35.9) -
exploration June 2011 - (27.8) -
Year to date - (91.8) -
Total capital Sept 2011 (332.0) (185.0) (117.5)
expenditure June 2011 (354.0) (112.9) (105.5)
Year to date (1,081.9) (484.9) (340.0)
Australasia Region
Australia
Total St Ives
Sustaining capital Sept 2011 (438.0) (315.2)
June 2011 (320.9) (215.3)
Year to date (960.8) (643.7)
Ore reserve Sept 2011 - -
development June 2011 - -
Year to date - -
Sept 2011 - -
Project capital #
June 2011 - -
Year to date - -
Brownfields Sept 2011 (96.7) (68.7)
exploration June 2011 (78.7) (59.9)
Year to date (243.9) (181.2)
Total capital Sept 2011 (534.7) (383.9)
expenditure June 2011 (399.6) (275.2)
Year to date (1,204.7) (824.9)
Agnew Corporate
Sustaining capital Sept 2011 (122.8) (7.6)
June 2011 (105.6) (0.8)
Year to date (317.1) (10.7)
Ore reserve Sept 2011 - -
development June 2011 - -
Year to date - -
Sept 2011 - (10.7)
Project capital #
June 2011 - (143.1)
Year to date - (254.9)
Brownfields Sept 2011 (28.0) -
exploration June 2011 (18.8) -
Year to date (62.7) -
Total capital Sept 2011 (150.8) (18.3)
expenditure June 2011 (124.4) (143.9)
Year to date (379.8) (265.6)
# Project capital under Corporate in the September quarter includes R45
million (US$6 million) at the Arctic Platinum Project (APP), a credit
from Chucapaca of R50 million (US$7 million) and general corporate
capital expenditure. From this quarter and retrospectively for the year,
the NCE project capital at Chucapaca only includes the 51 per cent funded
by Gold Fields and excludes the 49 per cent funded by Buenaventura, with
the result that a credit of R50 million (US$7 million) is included in
corporate capital expenditure for the September quarter. The table above
includes only Gold Fields` 51 per cent share of capital expenditure in
Chucapaca, resulting in total capital expenditure of R2,453 million,
whereas the Statement of Cash Flows includes all capital expenditure,
including that relating to non-controlling interest holders. Expenditure
in the June quarter amounted to R119 million (US$18 million) and R12
million (US$1 million) at Chucapaca and APP respectively.
Notional cash expenditure##
Figures are in South African rand millions unless otherwise stated
South Africa Region
Total
Group Total KDC
Operating costs Sept 2011 (5,450.4) (3,131.1) (1,952.4)
June 2011 (5,250.7) (3,074.0) (1,915.4)
Year to date (15,660.1) (8,987.8) (5,588.7)
Capital Sept 2011 (2,453.3) (1,265.8) (610.8)
expenditure June 2011 (2,285.0) (1,169.1) (544.8)
Year to date (6,806.9) (3,429.8) (1,594.1)
Notional cash Sept 2011 274,615 330,023 295,164
expenditure June 2011 256,692 305,501 290,289
- R/kg Year to date 258,884 310,471 283,591
Notional cash Sept 2011 1,212 1,456
1,302
expenditure June 2011 1,178 1,401 1,332
- US$/oz Year to date 1,160 1,391 1,271
South Africa Region
South
Beatrix Deep Total
Operating costs Sept 2011 (628.3) (550.4) (1,010.3)
June 2011 (625.2) (533.4) (957.0)
Year to date (1,802.9) (1,596.2) (2,978.7)
Capital Sept 2011 (163.1) (491.9) (517.0)
expenditure June 2011 (152.4) (471.9) (466.9)
Year to date (460.7) (1,375.0) (1,566.8)
Notional cash Sept 2011 300,228 520,369 209,506
expenditure June 2011 255,118 424,894 193,019
- R/kg Year to date 283,021 445,457 204,375
Notional cash Sept 2011 1,325 2,296 924
expenditure June 2011 1,170 1,949 885
- US$/oz Year to date 1,268 1,996 916
West Africa Region South
America
Region
Ghana Peru
Cerro
Tarkwa Damang Corona
Operating costs Sept 2011 (771.4) (238.9) (289.6)
June 2011 (735.5) (221.5) (254.7)
Year to date (2,242.6) (736.1) (832.4)
Capital Sept 2011 (332.0) (185.0) (117.5)
expenditure June 2011 (354.0) (112.9) (105.5)
Year to date (1,081.9) (484.9) (340.0)
Notional cash Sept 2011 197,036 250,828 139,370
expenditure June 2011 193,689 190,868 114,604
- R/kg Year to date 195,421 233,505 124,379
Notional cash Sept 2011 869 1,107 615
expenditure June 2011 889 876 526
- US$/oz Year to date 876 1,047 557
Australasia Region
Australia
St
Total Ives
Operating costs Sept 2011 (1,019.4) (752.1)
June 2011 (965.0) (734.9)
Year to date (2,861.2) (2,162.0)
Capital Sept 2011 (534.7) (383.9)
expenditure June 2011 (399.6) (275.2)
Year to date (1,204.7) (824.9)
Notional cash Sept 2011 296,188 317,585
expenditure June 2011 275,788 298,935
- R/kg Year to date 268,891 279,071
Notional cash Sept 2011 1,307 1,401
expenditure June 2011 1,265 1,371
- US$/oz Year to date 1,205 1,251
Corporate
Agnew
Operating costs Sept 2011 (267.3) -
June 2011 (230.1) -
Year to date (699.2) -
Capital Sept 2011 (150.8) (18.3)
expenditure June 2011 (124.4) (143.9)
Year to date (379.8) (265.6)
Notional cash Sept 2011 250,359 -
expenditure June 2011 225,940 -
- R/kg Year to date 244,228 -
Notional cash Sept 2011 1,105 -
expenditure June 2011 1,037 -
- US$/oz Year to date 1,095 -
## Notional cash expenditure (NCE) per kilogram (ounce) = operating costs
plus capital expenditure, excluding minority interest in projects,
divided by gold produced.
Underground and surface
South African rand and metric units
South Africa
Region
Total
Mine
Operations
Operating Results Total KDC
Ore milled/
treated (000
tonnes)
September 2011 2,851 2,283 1,221
- underground
June 2011 3,036 2,451 1,269
Year to date 8,600 6,795 3,582
- surface September 2011 11,919 2,044 1,584
June 2011 12,151 1,957 1,379
Year to date 35,815 5,960 4,405
- total September 2011 14,770 4,327 2,805
June 2011 15,187 4,408 2,648
Year to date 44,415 12,755 7,987
Yield (grams
per tonne)
September 2011 5.4 5.3 6.2
- underground
June 2011 5.3 5.2 6.0
Year to date 5.4 5.4 6.2
- surface September 2011 1.1 0.6 0.7
June 2011 1.1 0.6 0.6
Year to date 1.1 0.6 0.7
- combined September 2011 1.9 3.1 3.1
June 2011 1.9 3.2 3.2
Year to date 2.0 3.1 3.2
Gold produced
(kilograms)
September 2011 15,446 12,090 7,612
- underground
June 2011 15,953 12,741 7,609
Year to date 46,149 36,365 22,380
- surface September 2011 13,335 1,233 1,072
June 2011 13,404 1,148 866
Year to date 40,635 3,631 2,948
- total September 2011 28,781 13,323 8,684
June 2011 29,357 13,889 8,475
Year to date 86,784 39,996 25,328
Operating costs
(Rand per tonne)
September 2011 1,227 1,294 1,483
- underground
June 2011 1,130 1,176 1,390
Year to date 1,170 1,244 1,441
- surface September 2011 164 87 90
June 2011 150 98 110
Year to date 156 90 97
- total September 2011 369 724 696
June 2011 346 697 723
Year to date 353 705 700
South Africa Region
South
Operating Results Beatrix Deep#
Total
Ore milled/
treated (000
tonnes)
September 2011 547 515 -
- underground
June 2011 648 534 -
Year to date 1,694 1,519 -
- surface September 2011 352 108 6,825
June 2011 422 156 7,155
Year to date 1,183 372 21,033
- total September 2011 899 623 6,825
June 2011 1,070 690 7,155
Year to date 2,877 1,891 21,033
Yield (grams
per tonne)
September 2011 4.6 5.0 -
- underground
June 2011 4.5 5.3 -
Year to date 4.5 5.3 -
- surface September 2011 0.3 0.5 1.1
June 2011 0.3 0.9 1.0
Year to date 0.3 0.8 1.1
- combined September 2011 2.9 3.2 1.1
June 2011 2.8 3.4 1.0
Year to date 2.8 3.5 1.1
Gold produced
(kilograms)
September 2011 2,524 1,954 -
- underground
June 2011 2,902 2,230 -
Year to date 7,597 6,388 -
- surface September 2011 112 49 7,290
June 2011 146 136 7,377
Year to date 401 282 22,241
- total September 2011 2,636 2,003 7,290
June 2011 3,048 2,366 7,377
Year to date 7,998 6,670 22,241
Operating costs
(Rand per tonne)
September 2011 1,101 1,051
-
- underground
June 2011 927 972 -
Year to date 1,020 1,029 -
- surface September 2011 74 86 148
June 2011 59 93 134
Year to date 64 90 142
- total September 2011 699 883 148
June 2011 584 773 134
Year to dat 627 844 142
West Africa Region South
America
Region
Ghana Peru
Cerro
Operating Results Tarkwa Damang Corona
Ore milled/
treated (000
tonnes)
September 2011 - - -
- underground
June 2011 - - -
Year to date - - -
- surface September 2011 5,597 1,228 1,674
June 2011 5,883 1,272 1,717
Year to date 17,283 3,750 4,973
- total September 2011 5,597 1,228 1,674
June 2011 5,883 1,272 1,717
Year to date 17,283 3,750 4,973
Yield (grams
per tonne)
September 2011 - - -
- underground
June 2011 - - -
Year to date - - -
- surface September 2011 1.0 1.4 1.7
June 2011 1.0 1.4 1.8
Year to date 1.0 1.4 1.9
- combined September 2011 1.0 1.4 1.7
June 2011 1.0 1.4 1.8
Year to date 1.0 1.4 1.9
Gold produced
(kilograms)
September 2011 - - -
- underground
June 2011 - - -
Year to date - - -
- surface September 2011 5,600 1,690 2,921
June 2011 5,625 1,752 3,143
Year to date 17,012 5,229 9,426
- total September 2011 5,600 1,690 2,921
June 2011 5,625 1,752 3,143
Year to date 17,012 5,229 9,426
Operating costs
(Rand per tonne)
September 2011 - - -
- underground
June 2011 - - -
Year to date - - -
- surface September 2011 138 195 173
June 2011 125 174 148
Year to date 130 196 167
- total September 2011 138 195 173
June 2011 125 174 148
Year to dat 130 196 167
Australasia Region
Australia
Operating Results Total St Ives Agnew
Ore milled/
treated (000
tonnes)
September 2011 568 424 144
- underground
June 2011 585 412 173
Year to date 1,805 1,337 468
- surface September 2011 1,376 1,258 118
June 2011 1,322 1,264 58
Year to date 3,849 3,640 209
- total September 2011 1,944 1,682 262
June 2011 1,907 1,676 231
Year to date 5,654 4,977 677
Yield (grams
per tonne)
September 2011 5.9 4.7 9.5
- underground
June 2011 5.5 4.2 8.6
Year to date 5.4 4.3 8.6
- surface September 2011 1.4 1.3 2.5
June 2011 1.3 1.3 1.5
Year to date 1.4 1.4 1.9
- combined September 2011 2.7 2.1 6.4
June 2011 2.6 2.0 6.8
Year to date 2.7 2.2 6.5
Gold produced
(kilograms)
September 2011 3,356 1,984 1,372
- underground
June 2011 3,212 1,732 1,480
Year to date 9,784 5,765 4,019
- surface September 2011 1,891 1,593 298
June 2011 1,736 1,647 89
Year to date 5,337 4,938 399
- total September 2011 5,247 3,577 1,670
June 2011 4,948 3,379 1,569
Year to date 15,121 10,703 4,418
Operating costs
(Rand per tonne)
September 2011 960 762 1,544
- underground
June 2011 935 799 1,258
Year to date 892 735 1,341
- surface September 2011 345 341 381
June 2011 316 321 214
Year to date 325 324 343
- total September 2011 524 447 1,020
June 2011 506 438 996
Year to dat 506 434 1,033
# September quarter includes 123,000 tonnes (June quarter includes
115,000 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 September 2011 quarter
Carbon
Reef Leader Kloof Main VCR
Advanced (m) 4,502 199 666 5,093
Advanced on reef (m) 499 43 181 752
Sampled (m) 546 15 243 618
Channel width (cm) 99 99 86 107
Average value - (g/t) 19.0 17.4 14.7 24.6
- (cm.g/t) 1,879 1,714 1,269 2,636
KDC 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
836Sampled (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 Year to date F2011
Carbon
Reef Leader Kloof Main VCR
Advanced (m) 13,887 591 2,998 16,270
Advanced on reef (m) 2,470 185 590 2,647
Sampled (m) 2,358 144 582 2,169
Channel width (cm) 79 97 92 108
Average value - (g/t) 23.0 22.1 10.2 25.8
- (cm.g/t) 1,813 2,142 944 2,787
Beatrix September 2011 quarter
Reef Beatrix Kalkoenkrans
Advanced (m) 4,065 1,377
Advanced on reef (m) 994 188
Sampled (m) 1,071 186
Channel width (cm) 141 133
Average value - (g/t) 7.0 14.6
- (cm.g/t) 982 1,941
Beatrix 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 Year to date F2011
Reef Beatrix Kalkoenkrans
Advanced (m) 12,604 4,655
Advanced on reef (m) 3,545 805
Sampled (m) 3,372 789
Channel width (cm) 116 110
Average value - (g/t) 9.6 14.7
- (cm.g/t) 1,112 1,613
South Deep September 2011 quarter
Reef Elsburgs 1,2
Main Advanced (m) 2,938
- Main above 95 level (m) 1,484
- Main below 95 level (m) 1,454
Advanced on reef (m) 1,204
Square metres
de-stressed (m2) 6,815
- Reserve value de-stressed (g/t) 7.2
Shaft sinking (m) 28
South Deep June 2011 quarter Year to date F2011
Elsburgs 1,2 Elsburgs 1,2
Main Advanced 3,063 8,843
- Main above 95 level 1,890 5,073
- Main below 95 level 1,173 3,770
Advanced on reef 1,511 4,252
Square metres
de-stressed 5,554 17,356
- Reserve value de-stressed 7.1 7.2
Shaft sinking - 28
1) Trackless development in the Elsburg reefs is evaluated by means of
the resource model.
2) Full channel width not fully exposed in development, hence not
reported.
Administration and corporate information
Corporate Secretary
Cain Farrel
Tel: +27 11 562 9742
Fax: +27 11 562 9829
e-mail: cain.farrel@goldfields.co.za
Registered Office
Johannesburg
Gold Fields Limited
150 Helen Road
Sandown
Sandton
2196
Postnet Suite 252
Private Bag X30500
Houghton 2041
Tel: +27 11 562 9700
Fax: +27 11 562 9829
Office of the United Kingdom
Secretaries
London
St James`s Corporate Services Limited
6 St James`s Place
London SW1A 1NP
United Kingdom
Tel: +44 20 7499 3916
Fax: +44 20 7491 1989
American Depository Receipts Transfer
Agent
Bank of New York Mellon
BNY Mellon Shareowner Services
P O Box 358516
Pittsburgh, PA15252-8516
US toll-free telephone: +1 888 269 2377
Tel: +1 201 680 6825
e-mail: shrrelations@bnymellon.com
Gold Fields Limited
Incorporated in the Republic of South Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN - ZAE 000018123
Investor Enquiries
Zakira Amra
Tel: +27 11 562 9775
Mobile: +27 79 694 0267
e-mail: zakira.amra@goldfields.co.za
Willie Jacobsz
Tel: +508 839 1188
Mobile: +857 241 7127
e-mail: willie.jacobsz@gfexpl.com
Media Enquiries
Sven Lunsche
Tel: +27 11 562 9763
Mobile: +27 83 260 9279
e-mail: sven.lunsche@goldfields.co.za
Sponsor:
J.P. Morgan Equities Limited
Transfer Secretaries
South Africa
Computershare Investor Services
(Proprietary) Limited
Ground Floor
70 Marshall Street
Johannesburg, 2001
P O Box 61051
Marshalltown, 2107
Tel: +27 11 370 5000
Fax: +27 11 688 5248
United Kingdom
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
England
Tel: 0871 664 0300 (calls cost 10p a minute
plus network extras, lines are open
8.30am-5.30pm Mon-Fri) or
(from overseas) +44 20 8639 3399
Fax: +44 20 8658 3430
e-mail: ssd@capitaregistrars.com
Website
http://www.goldfields.co.za
Listings
JSE / NYSE / NASDAQ Dubai: GFI
NYX: GFLB
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 eventsor
circumstances after the date of this document or to reflect the
occurrence of unanticipated events.
Directors
M A Ramphele (Chair) K Ansah # A R Hill ##
N J Holland *> (Chief Executive Officer) C A Carolus J L Lazaro
P A Schmidt > (Chief Financial Officer) R Danino ** R P Menell
M S Moloko R L Pennant-Rea *
D N Murray G M Wilson
D M J Ncube
* British # Ghanaian ## Canadian Filipino
** Peruvian Independent Director > Non-independent
Director
Date: 10/11/2011 08:00:01 Supplied by www.sharenet.co.za
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