Wrap Text
GFI - Gold Fields Limited - Media release q1 ended 31 March 2012 Unaudited
results
Gold Fields Limited
Incorporated in the Republic of South Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN - ZAE 000018123
MEDIA RELEASE Q1 ENDED 31 MARCH 2012 UNAUDITED RESULTS
Annual reserve declaration of 80.6 million ounces reflects greater technical
and global diversification
JOHANNESBURG. 17 May 2012, Gold Fields Limited (NYSE & JSE: GFI) today
announced net earnings for the March quarter of R2,082 million compared with
R2,605 million in the December quarter and R1,100 million in the March 2011
quarter. In US dollar terms net earnings for the March quarter were US$268
million, compared with US$336 million in the December quarter and US$158
million in the March 2011 quarter.
March 2012 quarter salient features:
- Group attributable equivalent gold production of 827,000 ounces;
- Total cash cost of US$870 per ounce;
- Operating margin of 48 per cent and NCE margin of 24 per cent; and
- Project pipeline continues to advance.
Statement by Nick Holland, Chief Executive Officer of Gold Fields:
During the quarter, we regrettably had four fatal accidents at our South
African operations. Safety and health remains the most important value in our
Group and we will continue, in partnership with the Safety Inspectorate of the
Department of Mineral Resources and with organised labour, to focus our
efforts on improving our safety performance. Five key areas can lead to
sustainable improvements in safety: engineering out risk; ensuring compliance
with standards and procedures; improving the health of employees; continuous
stakeholder engagement; and behavioural based safety initiatives.
In the March 2012 quarter, Gold Fields reported attributable Group production
of 827,000 gold equivalent ounces similar to the corresponding quarter a year
ago (Q1 2011: 830,000 gold equivalent ounces) and 6 per cent lower than in the
December 2011 quarter of 883,000 ounces. Production was seasonally lower in
the March quarter as it includes the extended Christmas break. Despite the
lower production, net earnings remained robust benefiting from a stable gold
price combined with continued sound cost control.
Attributable gold production for the year ending December 2012 is expected to
be approximately 3.5 million equivalent ounces.
The Group NCE increased by 2 per cent from R313,286 per kilogram (US$1,206 per
ounce) in the December quarter to R319,835 per kilogram (US$1,280 per ounce)
in the March quarter. This increase was as a result of higher operating costs
and lower production, partially offset by lower capital expenditure. The Group
reported a NCE margin of 24 per cent for the March 2012 quarter, which was
above the short term objective of 20 per cent and broadly in line with the
longer term target of 25 per cent.
The March quarter saw steady progress on all of our growth projects. The most
significant development being the US$110 million payment made on 20 March 2012
to exercise our option to acquire a 40 per cent interest in the Far Southeast
project in the Philippines. The decision to exercise the option earlier than
originally planned was linked to positive results from our due diligence and
scoping studies at Far Southeast. A pre-feasibility study, including a
significant 100,000 metre drilling programme, has commenced, and will
concentrate on infill-drilling the exploration target zone to a level
appropriate for resource declaration. We still have the option to acquire an
additional 20 per cent stake from Lepanto Consolidated Mining Company for
US$110 million.
In Peru, the Chucapaca feasibility study is progressing well, with particular
emphasis on optimising recoveries, plant design as well as permitting
requirements. The study remains on track for completion in the second half of
2012. The Environmental Impact Assessment (EIA) is underway, with submission
planned following completion of the feasibility study. Extensive community
engagement programmes and activities are continuing.
At the Arctic Platinum project in Finland, activities during the quarter
included: resource drilling on the Suhanko North prospect, which has the
potential to add meaningful additional tonnes of PGE mineralisation to the
original Suhanko project of 140 million tonnes; associated metallurgical test
work; and the completion and review of the amendment to the Suhanko
Environmental Permit to incorporate the Platsol hydro-metallurgical process
was submitted at the end of March 2012. An additional EIA and mining lease
application is expected to be submitted later in 2012 to cover Suhanko North
and other nearby deposits. Our aim is to complete a pre-feasibility study on
the expanded project, including Suhanko North, by the end of 2012.
At the Damang Super-pit project in Ghana, all drilling activities were
completed and resource models finalised for execution of the pre-feasibility
study. All other activities, including engineering and environmental work are
scheduled for completion along with the pre-feasibility study in the second
half of 2012. The impact on the project of recently gazetted tax changes,
increasing the tax rate from 25 to 35 per cent and the imposing of less
favourable capital allowances on the project, are being assessed.
During the quarter we published our Integrated Annual Report for 2011, which
includes our latest Mineral Resource and Reserve Statement. Gold Fields has
total attributable precious metal and gold equivalent Mineral Reserves of 80.6
million ounces - a 5 per cent increase in reserves after taking into account
the inventory mined during 2011. The Mineral Resource position in the West
Africa region increased by 46 per cent from 17.3 million ounces to 25.2
million ounces, net of depletion, largely due to discoveries at the Greater
Damang project. The total Mineral Reserve in the West Africa region has
increased by 21 per cent, from 11.3 million ounces to 13.7 million ounces, net
of mine depletion. In the South American region, Cerro Corona`s total gold
equivalent Mineral Reserve base improved by 15 per cent, from 5.3 million
ounces to 6.1 million ounces, net of depletion, primarily due to the increase
in the capacity of the tailings storage facility from 99 million tonnes to 130
million tonnes. The improved Mineral Reserve position is in line with our long-
term target of 5 million gold-equivalent ounces per year either in production
or in development by the end of 2015.
Gold production for the year ending December 2012 is unlikely to exceed 3.5
million attributable gold equivalent ounces. (Paul suggests on track to
achieve).
Stock data
Number of shares in issue
- at end March 2012 723,817,473
- average for the quarter 723,776,008
Free Float 100 per cent
ADR Ratio 1:1
Bloomberg / Reuters GFISJ / GFLJ.J
JSE Limited - (GFI)
Range - Quarter ZAR104.48 - ZAR131.31
Average Volume - Quarter 2,323,091 shares / day
NYSE - (GFI)
Range - Quarter US$13.50 - US$16.92
Average Volume - Quarter 3,345,949 shares / day
South African Rand
Quarter
Key statistics
March December March
2011 2011 2012
Gold produced* 25,808 27,473 25,718 kg
Total cash cost 168,455 199,155 217,434 R/kg
Notional cash expenditure 245,326 313,286 319,835 R/kg
Tonnes milled/treated 14,458 15,026 14,848 000
Revenue 311,708 435,661 419,433 R/kg
Operating costs 343 376 394 R/tonne
Operating profit 4,091 6,908 5,433 Rm
Operating margin 46 56 48 %
NCE margin 21 28 24 %
1,100 2,605 2,082 Rm
Net earnings
153 361 288 SA c.p.s.
1,101 2,582 2,098 Rm
Headline earnings
153 357 290 SA c.p.s.
Net earnings excluding gains
and losses on foreign exchange, 1,152 2,653 2,171 Rm
financial instruments, non-
recurring items and share of
results of associates after 160 368 300 SA c.p.s.
royalties and taxation
United States Dollars
Quarter
Key statistics
March December March
2012 2011 2011
Gold produced* oz (000) 827 883 830
Total cash cost $/oz 870 767 751
Notional cash expenditure $/oz 1,280 1,206 1,093
Tonnes milled/treated 000 14,848 15,026 14,458
Revenue $/oz 1,679 1,677 1,389
Operating costs $/tonne 51 47 49
Operating profit $m 699 877 586
Operating margin % 48 56 46
NCE margin % 24 28 21
$m 268 336 158
Net earnings
US c.p.s. 37 47 22
$m 270 333 158
Headline earnings
US c.p.s. 37 46 22
Net earnings excluding gains
$m 279 342 165
and losses on foreign exchange,
financial instruments, non-
recurring items and share of
US c.p.s. 39 47 23
results of associates after
royalties and taxation
* All of the key statistics given above are managed figures, except for gold
produced which is attributable equivalent production.
All operations are wholly owned except for Tarkwa and Damang in Ghana (90.0
per cent) and Cerro Corona in Peru (98.5 per cent).
Gold produced (and sales) throughout this report includes copper gold
equivalents of approximately 5 per cent.
Certain forward looking statements
Certain statements in this document constitute "forward looking statements"
within the meaning of Section 27A of the US Securities Act of 1933 and Section
21E of the US Securities Exchange Act of 1934.
Such forward looking statements involve known and unknown risks, uncertainties
and other important factors that could cause the actual results, performance
or achievements of the company to be materially different from the future
results, performance or achievements expressed or implied by such forward
looking statements. Such risks, uncertainties and other important factors
include among others: economic, business and political conditions in South
Africa, Ghana, Australia, Peru and elsewhere; the ability to achieve
anticipated efficiencies and other cost savings in connection with past and
future acquisitions, exploration and development activities; decreases in the
market price of gold and/or copper; hazards associated with underground and
surface gold mining; labour disruptions; availability terms and deployment of
capital or credit; changes in government regulations, particularly
environmental regulations; and new legislation affecting mining and mineral
rights; changes in exchange rates; currency devaluations; inflation and other
macro-economic factors, industrial action, temporary stoppages of mines for
safety and unplanned maintenance reasons; and the impact of the AIDS crisis in
South Africa. These forward looking statements speak only as of the date of
this document.
The company undertakes no obligation to update publicly or release any
revisions to these forward looking statements to reflect events or
circumstances after the date of this document or to reflect the occurrence of
unanticipated events.
Safety
The Group`s fatal injury frequency rate regressed from 0.02 in the December
quarter to 0.11 in the March quarter. The South African region had four
fatalities in the March quarter. There were two fatalities at KDC resulting
from an electrocution and a fall of ground. At Beatrix, a shaft conveyance
incident and a drilling accident resulted in two fatalities.
Agnew, Tarkwa and Cerro Corona continued to report zero lost time injuries
(LTI`s). The lost day injury frequency rate for the Group regressed from 5.04
to 5.21, while the days lost frequency rate improved from 2 29 to 220.
Definitions
Lost Day Injury (LDI) takes into account any injury occurring in the workplace
where a person is unable to attend a full shift due to his or her injury at
any time following the injury.
Days Lost takes into account the number of days lost due to injuries recorded.
Financial Review
Quarter ended 31 March 2012 compared with quarter
ended 31 December 2011
Revenue
Attributable gold production decreased by 6 per cent from 883,000 ounces in
the December quarter to 827,000 ounces in the March quarter. At the South
African operations, production decreased by 11 per cent from 434,000 ounces to
387,000 ounces. This decrease in production was mainly due to lower mining
volumes as a result of the extended Christmas break, which traditionally
impacts the March quarter, and to a lesser extent, as a result of safety
related stoppages.
Attributable gold production at the West African operations increased by 5 per
cent from 198,000 ounces to 207,000 ounces, largely due to increased volumes
mined and processed at Tarkwa. Attributable equivalent gold production at
Cerro Corona in Peru, decreased by 4 per cent from 79,000 ounces to 76,000
ounces, largely due to lower copper and gold head grades. At the Australian
operations, gold production decreased by 9 per cent from 172,000 ounces to
157,000 ounces due to lower underground volumes and grades, mined and
processed at Agnew.
At the South Africa region, gold production at KDC decreased by 13 per cent
from 285,800 ounces (8,890 kilograms) in the December quarter to 249,700
ounces (7,765 kilograms) in the March quarter. This decrease in production was
mainly due to a decrease in underground volumes as a result of the Christmas
break, partly offset by an increase in yield. At Beatrix, production decreased
by 12 per cent from 89,700 ounces (2,789 kilograms) to 79,200 ounces (2,462
kilograms) mainly due to lower underground volumes as a result of the
Christmas break. At South Deep, production was similar at 58,600 ounces (1,824
kilograms) with lower volumes due to the Christmas break, offset by an
increase in yield.
At the West Africa region, managed gold production at Tarkwa increased by 9
per cent from 170,400 ounces to 185,300 ounces due to an increase in high
grade ore mined, which replaced low grade stockpile material processed during
the previous quarter. At Damang, gold production decreased by 11 per cent from
49,600 ounces to 44,300 ounces as a result of lower grades and recoveries.
At the South America region, equivalent gold production at Cerro Corona
decreased by 4 per cent from 80,000 equivalent ounces in the December quarter
to 76,500 equivalent ounces in the March quarter, mainly due to lower copper
and gold head grades processed.
At the Australasia region, St Ives` gold production was similar at 120,300
ounces. At Agnew, gold production decreased by 29 per cent from 52,000 ounces
to 37,000 ounces due to lower underground volumes mined and processed, as well
as lower underground and surface yields.
The average quarterly US dollar gold price achieved was similar to the
December quarter at US$1,679 per ounce. The average Rand/US dollar exchange
rate of R7.77 was 4 per cent stronger than the December quarter`s average of
R8.08. The average Australian/US dollar exchange rate in the March quarter was
4 per cent stronger at A$1.00 = US$1.05 when compared with the average for the
December quarter of A$1.00 = US$1.01. The average rand gold price decreased by
4 per cent from R435,661 per kilogram to R419,433 per kilogram and the average
Australian dollar gold price decreased by 4 per cent from A$1,665 per ounce to
A$1,595 per ounce.
Revenue decreased by 9 per cent from R12,267 million (US$1,534 million) in the
December quarter to R11,206 million (US$1,442 million) in the March quarter.
Operating costs
Net operating costs increased from R5,359 million (US$656 million) in the
December quarter to R5,774 million (US$743 million) in the March quarter.
Total cash cost increased from R199,155 per kilogram to R217,434 per kilogram,
an increase of 9 per cent. The increase in the total cash cost was due to the
increase in operating costs, a much lower gold-in-process (GIP) credit which
accounted for about half of this increase and the decrease in production. In
US dollar terms total cash cost increased by 13 per cent from US$767 per ounce
to US$870 per ounce as a consequence of the above factors and also due to the
strengthening of the rand against the US dollar. Refer to the total cash cost
reconciliation on page 24 for more detail.
At the South Africa region, net operating costs increased by 5 per cent from
R3,012 million (US$367 million) to R3,168 million (US$408 million). This
increase was due to annual salary increases for senior officials, additional
rock breaking employees signed on during the quarter due to attrition, an
increase in overtime worked during the Christmas break related largely to
infrastructure maintenance plus additional shifts worked during the quarter.
Total cash cost increased by 15 per cent from R229,148 per kilogram (US$882
per ounce) to R264,069 per kilogram (US$1,057 per ounce) due to the increase
in costs and the decrease in production.
At the West Africa region, net operating costs increased by 4 per cent from
US$136 million (R1,087 million) to US$142 million (R1,104 million). This
increase was mainly at Tarkwa, in line with the increase in production. Total
cash cost at the West African operations decreased from US$659 per ounce in
the December quarter to US$642 per ounce in the March quarter, due to the
increase in production at Tarkwa, partly offset by the increase in costs.
At Cerro Corona in South America, net operating costs increased by 26 per cent
from US$35 million (R285 million) to US$44 million (R341 million). This
increase was mainly due to an increase in ore and waste mining volumes. Total
cash cost increased from US$489 per ounce in the December quarter to US$534
per ounce in the March quarter due to the increase in net operating costs and
the decline in gold equivalent ounces.
At the Australasia region, net operating costs increased by 21 per cent from
A$117 million (R974 million) to A$142 million (R1,160 million). This was due
to a drawdown of open pit stockpiles at St Ives in the March quarter compared
with a build-up of stockpiles at the end of the December quarter. Operating
costs excluding the movements in stockpiles were marginally lower this
quarter. Total cash cost for the region increased from A$734 per ounce (US$741
per ounce) to A$877 per ounce (US$925 per ounce) due to the increase in costs
and lower production.
Operating margin
The net effect of the decrease in revenue and increase in net operating costs
was a 21 per cent decrease in operating profit from R6,908 million (US$877
million) in the December quarter to R5,433 million (US$699 million) in the
March quarter.
The Group operating margin decreased from 56 per cent in the December quarter
to 48 per cent in the March quarter. The operating margin at the South African
operations decreased from 49 per cent to 37 per cent. At the West African
operations the operating margin was similar at 63 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 operating margin decreased from 60 per
cent to 44 per cent.
Amortisation
Amortisation decreased from R1,761 million (US$222 million) in the December
quarter to R1,522 million (US$196 million) in the March quarter. This decrease
was mainly at St Ives due to an increase in ore mined in the March quarter
from the Leviathan open pit which carries a lower depreciation rate when
compared with the Mars/Minotaur link and Diana pits, which were the main open
pit source of ore in the December quarter.
Other
Net interest paid decreased from R61 million (US$8 million) in the December
quarter to R45 million (US$6 million) in the March quarter. In the March
quarter interest paid of R150 million (US$19 million) was partly offset by
interest received of R77 million (US$10 million) and interest capitalised of
R28 million (US$3 million). This compared with interest paid of R128 million
(US$16 million) which was partly offset by interest received of R49 million
(US$6 million) and interest capitalised of R18 million (US$2 million) in the
December quarter. The higher interest received in the March quarter was due to
higher average cash balances in the March quarter.
The share of results of associates after taxation decreased from R27 million
(US$4 million) in the December quarter to R18 million (US$2 million) in the
March quarter. These profits related mainly to the Group`s interest in Rand
Refinery.
The loss on foreign exchange of R66 million (US$9 million) in the March
quarter compared with a gain of R10 million (US$1 million) in the December
quarter. These gains and losses relate to the conversion of offshore cash
holdings into their functional currencies as well as exchange gains and losses
on inter-company loans.
The loss on financial instruments of R1 million (US$nil million) in the March
quarter compared with a gain of R1 million (US$nil million) in the December
quarter.
Share-based payments increased from R113 million (US$14 million) in the
December quarter to R144 million (US$19 million) in the March quarter due to
year-end forfeiture adjustments in the December quarter, not repeated in the
March quarter.
Other costs decreased from R2 million (gain of US$1 million) in the December
quarter to R1 million (US$0.1 million) in the March quarter.
Exploration
Exploration expenditure was similar quarter on quarter at R292 million (US$38
million). Refer to the Growth section on page 12 for more detail on
exploration activities.
Feasibility and evaluation costs
Feasibility and evaluation costs at the Far Southeast (FSE) project in the
Philippines increased from R33 million (US$4 million) in the December quarter
to R76 million (US$10 million) in the March quarter, mainly due to increased
drilling activities. Refer to the Growth section on page 12 for more detail on
exploration activities.
Non-recurring items
Non-recurring costs decreased from R133 million (US$16 million) in the
December quarter to R79 million (US$10 million) in the March quarter. March`s
non-recurring costs included impairment of various junior exploration
companies amounting to R17 million (US$2 million) and restructuring costs of
R63 million (US$8 million), made up of voluntary separation packages, business
process re-engineering costs and restructuring costs at all the operations.
Non-recurring costs in the December quarter included restructuring costs of
R144 million (US$18 million), impairment cost of R71 million (US$10 million)
and other sundry costs of R11 million (US$1 million). These costs were partly
offset by a R93 million (US$13 million) profit on the sale of shares in
Conquest Mining Limited and Gold One International Limited.
Royalties
Government royalties decreased from R376 million (US$48 million) in the
December quarter to R318 million (US$41 million) in the March quarter. The
lower royalty in the March quarter was mainly at the South African operations
due to the lower revenue on which royalties are calculated.
Taxation
Taxation decreased from R1,466 million (US$187 million) in the December
quarter to R792 million (US$102 million) in the March quarter. This decrease
is in line with the lower taxable income and a net deferred tax credit of R255
million (US$33 million) as a result of the rate changes in South Africa and
Ghana. Normal taxation decreased from R1,190 million (US$154 million) to R885
million (US$114 million). Deferred taxation decreased from R276 million (US$33
million) in the December quarter to a credit of R93 million (US$12 million) in
the March quarter.
The change in the deferred tax charge was a result of changes to the tax
regimes for mining companies in Ghana and South Africa.
In Ghana, the budget speech presented by the Minister of Finance on 16
November 2011 proposed certain changes. These proposals were passed by the
Ghanaian Parliament on 1 February 2012. The changes were subsequently gazetted
on 9 March, effective from 5 March 2012, and include:
- Increased tax rate for mining companies from 25 per cent to 35 per cent; and
- As from calendar 2012, capital allowances on mining assets to be granted at
the rate of 20 per cent per year for a period of five years on the cost base
of the assets so incurred, compared with the previous 80 per cent allowance in
year one with 25 per cent (20 per cent of cost and an upliftment allowance of
5 per cent) claimed by way of a reducing balance method.
In addition, the National Fiscal Stabilisation Levy of 5 per cent expired with
effect from 1 January 2012.
In order to ensure that Ghana derives maximum benefit from its resources a
seven-member team has been established to review and re-negotiate stability
agreements entered into with some mining companies. The intent of the exercise
is to ensure support for Ghana`s economic growth and development.
In South Africa, the Minister of Finance announced in February 2012, during
the budget speech, that secondary tax on companies (STC) will be abolished
from 1 April 2012, resulting in the abolishment of the STC inclusive Gold
mining formula. The result is that there is now only one Gold Mining formula
with effect from 1 January 2012. As a result of this Gold Fields will be
subject to the new Gold mining formula for the whole of 2012.
The formula being y=a-(ab/x), where:
- y=the tax rate to be determined;
- a=the marginal tax rate of 34 per cent (compared with 43 per cent
previously);
- b=the portion of tax-free revenue (currently the first 5 per
cent) and
- x=the ratio of taxable income to the total income.
Gold Fields applied the new rates for the South African and Ghanaian
operations in the March quarter. The effect of these changes was a deferred
tax charge of R737 million (US$95 million) for the Ghanaian operations and a
deferred tax credit of R992 million (US$128 million) for the South African
operations.
Earnings
Net earnings attributable to owners of the parent amounted to R2,082 million
(US$268 million) or 288 SA cents per share (US$0.37 per share) in the March
quarter compared with R2,605 million (US$336 million) or 361 SA cents per
share (US$0.47 per share) in the December quarter.
Headline earnings i.e. earnings excluding the after tax effect of asset sales,
impairments and the sale of investments, amounted to R2,098 million (US$270
million) or 290 SA cents per share (US$0.37 per share) in the March quarter
compared with R2,582 million (US$333 million) or 357 SA cents per share
(US$0.46 per share) in the December quarter.
Earnings excluding non-recurring items as well as gains and losses on foreign
exchange, financial instruments and share of results of associates after
royalties and taxation, amounted to R2,171 million (US$279 million) or 300 SA
cents per share (US$0.39 per share) in the March quarter compared with R2,653
million (US$342 million) or 368 SA cents per share (US$0.47 per share) in the
December quarter.
Cash flow
Cash inflow from operating activities decreased from R4,953 million (US$615
million) in the December quarter to R2,742 million (US$360 million) in the
March quarter. The lower cash inflow was as a result of lower operating
profit, higher royalties and taxation paid and an increase in working capital.
In the March quarter dividends of R1,702 million (US$225 million), which
included R1,677 million (US$222 million) paid to owners of the parent and R24
million (US$3 million) paid to non-controlling interest holders at Tarkwa
compared with dividends paid of R88 million (US$11 million) to non-controlling
interest holders at Tarkwa in the December quarter.
Capital expenditure decreased from R3,242 million (US$410 million) in the
December quarter to R2,650 million (US$341 million) in the March quarter,
mainly due to the slow start-up of spend on capital at the beginning of the
new financial year.
At the South Africa region, capital expenditure decreased from R1,464 million
in the December quarter to R1,317 million in the March quarter mainly due to
lower infrastructure expenditure at KDC and Beatrix. The December quarter
included the purchase of a mobile processing plant at KDC. This was partially
offset by an increase in capital expenditure at South Deep of R48 million,
from R607 million to R655 million, with the majority of the expenditure on
development and equipping of the mine to achieve its build-up plan.
Expenditure on ore reserve development (ORD) at KDC decreased from R441
million to R426 million and at Beatrix, ORD was similar at R99 million.
At the West Africa region, capital expenditure decreased from US$89 million in
the December quarter to US$75 million in the March quarter mainly due to
completion of the CIL secondary crusher at Tarkwa in the December quarter. The
majority of capital expenditure in the March quarter was on pre-stripping and
acquisition of additional mining fleet.
In South America, at Cerro Corona, capital expenditure decreased from US$20
million in the December quarter to US$17 million in the March quarter. The
majority of this expenditure was incurred on an additional raise on the
tailings facility.
At the Australasia region, capital expenditure decreased from A$82 million in
the December quarter to A$60 million in the March quarter. At St Ives, capital
expenditure decreased from A$63 million to A$49 million, as expenditure on pre-
stripping at the Formidable pit, the Mars/Minotaur link and the Diana open pit
was completed in the December quarter. At Agnew, capital expenditure decreased
from A$19 million to A$11 million due to scheduling of projects.
Other investing activities in the March quarter included the third payment of
R834 million (US$110 million) in terms of the option agreement for the FSE
project which resulted in Gold Fields vesting a 40 per cent interest in the
project. Proceeds on the disposal of investments of R4 million (US$0.6
million) in the March quarter related to the repayment of the loan advanced to
GBF Underground Mining Company at St Ives. This compared with proceeds on the
disposal of investments of R62 million (US$8 million) in the December quarter,
of which R56 million (US$7 million) related to the sale of shares in Gold One
International Limited and R6 million (US$1 million) to the GBF loan repayment.
The December quarter also included an upfront non-refundable option fee of R55
million (US$7 million) to Bezant Resources PLC relating to the Guinaoang
deposit, as well as a non-controlling interest buy-out at South Deep of R51
million (US$6 million) due to the purchase of a further 26 per cent interest
in Western Areas Prospecting (Pty) Limited from Peotona Gold (Pty) Limited.
This transaction resulted in 100 per cent ownership for Gold Fields of Western
Areas Prospecting.
Environmental and post-retirement health care payments decreased from R79
million (US$11 million) in the December quarter to R10 million (US$1 million)
in the March quarter. This decrease was due to the year-end payment at the
South African operations which was disbursed in the December quarter.
Net cash inflow from financing activities increased from R21 million (US$1
million) in the December quarter to R1,744 million (US$230 million) in the
March quarter. In the March quarter loans received included a drawdown on the
Group`s South African facility of R1 billion to fund working capital and the
utilisation of an offshore facility of US$110 million to finance the Group`s
investment in the Far Southeast project. This was partly offset by scheduled
repayments of US$18 million on the Group`s offshore facilities at Tarkwa and
La Cima.
Loans received from non-controlling interest holders decreased from R73
million (US$9 million) in the December quarter to R46 million (US$6 million)
in the March quarter. These loans relate to funds received from Buenaventura
for their participation in the Chucapaca project.
The net cash outflow of R704 million (US$86 million) in the March quarter
compared with the net cash inflow of R1,540 million (US$182 million) in the
December quarter. After accounting for a negative translation adjustment of
R193 million (positive US$22 million) on offshore cash balances, the cash
outflow for the March quarter was R897 million (US$64 million). The cash
balance decreased from R6,049 million (US$744 million) at the end of December
to R5,152 million (US$680 million) at the end of March.
Notional cash expenditure (NCE)
Notional cash expenditure is defined as operating costs (including general and
administration) plus capital expenditure, which includes near-mine
exploration. NCE is reported on a per kilogram and per ounce basis - refer to
the detailed table in this report.
Revenue less NCE reflects the free cash flow available to pay taxation,
interest, greenfields exploration, pre-feasibility projects and dividends.
The NCE margin is defined as the difference between revenue per ounce and NCE
per ounce expressed as a percentage.
The Group NCE, which includes capitalised project costs increased from
R313,286 per kilogram (US$1,206 per ounce) for the December quarter to
R319,835 per kilogram (US$1,280 per ounce) in the March quarter. This increase
was as a result of the higher operating costs and lower production partly
offset by the lower capital expenditure. The NCE margin for the Group
decreased from 28 per cent to 24 per cent as a result of the higher NCE.
At the South Africa region, NCE per kilogram increased from R331,541 per
kilogram (US$1,276 per ounce) to R372,218 per kilogram (US$1,490 per ounce)
due to lower production and higher operating costs partly offset by lower
capital expenditure. The NCE margin of 24 per cent in the December quarter
reduced to 11 per cent in the March quarter due to the lower rand gold price
and the higher NCE. NCE excluding the funding of South Deep increased from
R284,802 per kilogram (US$1,096 per ounce) in the December quarter to R319,087
per kilogram (US$1,277 per ounce) in the March quarter. The NCE margin
excluding South Deep was 24 per cent in the March quarter compared with 35 per
cent in the December quarter.
At the West Africa region, NCE per ounce decreased from US$1,071 per ounce in
the December quarter to US$1,027 per ounce in the March quarter due to the
lower capital expenditure and higher production. The NCE margin increased from
36 per cent to 39 per cent as a result of the lower NCE.
At the South America region, NCE per ounce increased from US$719 per ounce in
the December quarter to US$745 per ounce in the March quarter due to the
decrease in gold equivalent production partly offset by the decrease in
capital expenditure. The NCE margin at Cerro Corona was constant at 56 per
cent.
At the Australasia region, NCE per ounce decreased from A$1,270 per ounce
(US$1,283 per ounce) in the December quarter to A$1,256 per ounce (US$1,324
per ounce) in the March quarter due to a decrease in capital expenditure
partly offset by the lower production at Agnew. The NCE margin decreased from
24 per cent to 21 per cent due to the lower Australian gold price partly
offset by the lower NCE.
Balance sheet
Net debt (long-term loans plus the current portion of long-term loans less
cash and deposits) increased from R9,460 million (US$1,164 million) at the end
of December 2011 to R11,008 million (US$1,452 million) at the end of March
2012.
Operational review
Cost and revenue optimisation initiatives through Business Process Re-
engineering (BPR)
The BPR process which commenced during the second half of 2010 is ongoing. All
operational production processes and associated cost structures from the stope
to the mill are continuously being reviewed. New business blueprints and
appropriate organisational structures were implemented to support 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
BPR in South Africa continues with various initiatives planned to deliver
savings of approximately R500 million over the next two years. The March
quarter has realised benefits of R27 million mainly due to the lower stores
consumption through strategic sourcing initiatives as well as overall cost
control and awareness.
Initiatives for improving quality mining and delivering full stoping potential
are on-going and include safety initiatives to improve compliance and
behaviour, focus on face length optimisation and labour planning to provide
the correct skills mix. It also includes a focus on quality blasts to improve
blasting frequency i.e. full panel blasting, full face advance and a product
size which is optimal in achieving a good milling result, leadership training
to ensure people skills are developed and optimised, and compliance to
procedures and processes.
The mechanisation of development ends at the long life shafts of KDC and
Beatrix (South Deep is already mechanised) aiming to improve safety and
productivity, reduce development costs and increase ore reserve flexibility
through higher monthly development advance rates, is ongoing. Eighty nine per
cent of flat-end development metres advanced at long-life shafts was achieved
by mechanised means, which was similar to the December quarter. The drill rigs
operating on the long life shafts at Beatrix and KDC achieved an average rate
of 40 metres per rig per month in the March quarter similar to that achieved
in the December quarter, both against a target of 38 metres per rig.
Progress against the Mine Health and Safety Council (MHSC) milestone, that no
machine or piece of equipment may generate a sound pressure level in excess of
110dB (A) after December 2013, is ongoing. The number of measurements
expressed as a percentage of noise measurements of machinery and equipment
emitting noise in excess of 110dB (A) was reduced to 0.6 per cent from 0.8 per
cent in the December quarter. Silencing of equipment is ongoing with continued
focus on replacing blocked and/or damaged silencers on machines. A further
measure to identify sound pressures above 85dB (A) has been introduced and
currently the percentage of employees exposed above this level is 62.4 per
cent. This measurement is without ear protection. Thus far, empirical studies
indicated that with the proper use of ear protection no employee will be
subject to a sound pressure level in excess of 85dB(A). A project to measure
exposure whilst using hearing protective devices to provide verification is
set to start in June 2012.
Of the individual gravimetric dust samples measurements taken during the March
quarter, 1.5 per cent were above the occupational exposure limit of 0.1
milligrams per cubic metre, thus meeting the target of not more than 5 per
cent of individual samples above the occupational exposure limit of 0.1
milligrams per cubic metre.
In order to improve upon these dust exposure targets, the Group
continuously refines interventions, which include:
- Building health rooms at the training centres to coach employees on
potential exposures and wearing of respiratory personal protective equipment;
- Using foggers, a water mist spray system, to trap dust particles liberated
from tipping points to prevent dust from entering the main air stream;
- Installing dual stage tip filter units, where the filters are equipped with
an additional layer of filtration material to improve the efficiency of old
technology filter bags in order to increase dust filtration;
- Managing the opening and closing of ore transfer chutes between levels so
that they remain closed when not in use to reduce airborne dust entering the
work place;
- Treating footwalls with binding chemicals sprayed from a specially designed
car pulled by a loco to prevent dust from being liberated into intake air
ways; and
- Analysing individual filters to assist in determining exposure levels.
West Africa region
Tarkwa
BPR initiatives are ongoing. The major BPR projects for 2012 include:
- Commissioning and integration of the secondary crusher at the CIL plant.
This is expected to achieve a 5 per cent improvement in the milling rate from
950,000 tonnes to 1 million tonnes per month. The secondary crusher was
commissioned in the March quarter and debottlenecking is in progress. The ramp-
up of the secondary crusher is planned at 75 per cent of nameplate for the
June quarter, with full production capacity from the September quarter.
- Waste strip acceleration. This is planned to be achieved through the
implementation of larger sized load and haul fleet. The improved flexibility
is also designed to ensure a continuous ore supply to the plant. Commissioning
of the larger sized load and haul fleet is scheduled for the December quarter;
- The construction and commissioning of an in-pit satellite fuel farm. The
benefits that will accrue include shorter haul distances for refueling, fuel
burn cost savings and improved productivity. Construction and commissioning is
scheduled for the June quarter and full implementation is scheduled for the
September quarter. This initiative is expected to deliver approximately US$30
million in cost savings over the life of mine; and
- Various other initiatives totaling around US$20 million were planned across
the mine.
Larger sized load and haul fleet has been ordered with the associated
infrastructure requirements currently under construction. Construction of the
in-pit satellite fuel farm is nearing completion. Cost savings of US$7 million
were achieved in the March quarter on various smaller initiatives.
Damang
BPR initiatives are ongoing. The major BPR projects for 2012 include:
- Continued savings from owner mining and maintenance initiatives implemented
in early 2011; and
- The implementation of an additional shift which will provide flexibility to
accelerate waste stripping and increase mining volumes to ensure a continuous
ore supply to the plant.
The new shift will also improve the utilisation of mining equipment.
Implementation was completed in the March quarter with the full productivity
benefits anticipated to be realised from the June quarter onwards.
The introduction of owner mining has resulted in a decrease in mining costs
from US$4.35 per tonne, which was the contractor cost per tonne prior to
conversion to owner mining, to US$3.22 per tonne. Added to this, the
additional shift has resulted in an increase in tonnes mined from
approximately 6 million tonnes per quarter to 8 million tonnes per quarter,
reducing costs further from US$3.22 per tonne to US$2.75 per tonne mined.
Australasia region
St Ives
Towards the end of 2011, an in-house business improvement team was established
at St Ives and the transition to owner miner for underground stoping was fully
implemented. Business improvement projects were introduced at Lefroy mill and
include coarse ore stockpile management, which allows for a manual feed at
times of crusher downtime to ensure the correct mining mix of coarse and fine
ore is delivered to the mill, the introduction of lead nitrate into the
milling circuit to improve recoveries and at the heap leach, a diverter gate
and belt magnets were commissioned allowing a continuous feed to the pads,
where previously the feed was temporarily stopped to clear adverse material.
These initiatives were effective in increasing ore tonnes processed from an
average of 1.68 million tonnes per quarter for the 12 month period ended
September 2011 to 1.77 million tonnes per quarter achieved over the last two
quarters. Ongoing projects from 2011 resulted in sustained savings of around
A$6 million for the March quarter.
New business improvement projects for 2012 are planned to generate savings of
A$16 million for the year. During the March quarter the pipeline of new
projects already generating cash is estimated at around A$1 million. In
addition, St Ives focused on the implementation of semi-automatic production
drills which allow a single hole to be drilled on an automatic setting without
an operator being there to change rods. This would be required every metre and
a half if done manually. The intervention reduces drilling time, as drilling
is autonomous without losing production time. Estimated savings of A$1 million
are expected from this project from the June quarter.
At the open pits, the owner operator project is progressing well. A fleet of
Komatsu equipment has been ordered with the first delivery scheduled for the
end of the September quarter. This project is expected to reduce open pit
operating costs significantly and has the potential to increase open pit
reserves.
Agnew
At Agnew, new business improvement projects with planned benefits of A$8
million have been identified for 2012.
The ventilation fan installation carried over from 2011, has resulted in
improved access to development areas because of enhanced airflow and lower
underground temperatures.
Projects which commenced during the quarter, from which benefits are yet to
accrue, include a change-over from ANFO (Ammonia nitrate - fuel/oil)
technology used to charge the drill holes for blasting to emulsion charging,
which unlike ANFO is pumped under pressure to provide a more competent blast.
This is expected to provide greater blasting efficiencies within the Waroonga
mining environment. In addition, an optimisation project to reduce cycle times
of dump trucks from Waroonga underground to the mill was also introduced
during the quarter.
South Africa region
KDC
March December
2012 2011
Gold produced - 000`oz 249.7 285.8
- kg 7,765 8,890
Yield - underground - g/t 6.5 6.3
- combined - g/t 3.1 3.1
Total cash cost - R/kg 255,480 218,526
- US$/oz 1,023 841
Notional cash expenditure - R/kg 322,421 289,078
- US$/oz 1,291 1,113
NCE margin - % 23 34
Gold production decreased from 285,800 ounces (8,890 kilograms) in the
December quarter to 249,700 ounces (7,765 kilograms) in the March quarter.
This decrease was due to lower underground volumes mined as a result of the
Christmas break and safety related stoppages.
Underground tonnes milled decreased from 1.23 million tonnes in the December
quarter to 990,000 tonnes in the March quarter due to the lower stoping
volumes. The yield partly offset this decrease, increasing from 6.3 grams per
tonne to 6.5 grams per tonne. Surface tonnes milled decreased from 1.61
million tonnes to 1.53 million tonnes due to logistical constraints. However,
this was offset by an improved yield from 0.7 grams per tonne to 0.8 grams per
tonne.
Main development decreased from 11,253 metres to 10,651 metres, while on-reef
development increased from 1,786 metres to 1,890 metres. The average
development value decreased from 2,084 centimetre grams per tonne to 1,867
centimetre grams per tonne.
Operating costs increased from R1,864 million (US$227 million) to R1,971
million (US$254 million). This increase was mainly due to annual salary
increases for senior officials, credits received in the December quarter from
service departments and overtime worked during the Christmas break, partly
offset by a decrease in stores costs as a result of the lower production.
Total cash cost increased from R218,526 per kilogram (US$841 per ounce) in the
December quarter to R255,480 per kilogram (US$1,023 per ounce) in the March
quarter due to the lower production and higher costs.
Operating profit decreased from R2,030 million (US$264 million) to R1,278
million (US$165 million) due to the lower revenue and increased operating
costs.
Capital expenditure decreased from R706 million (US$89 million) in the
December quarter to R533 million (US$69 million) in the March quarter mainly
due to expenditure on an additional mobile processing plant in the previous
quarter and the slow start-up of spend on capital at the beginning of the new
financial year.
Notional cash expenditure increased from R289,078 per kilogram (US$1,113 per
ounce) in the December quarter to R322,421 per kilogram (US$1,291 per ounce)
in the March quarter as a result of the lower production and higher operating
costs partly offset by the lower capital expenditure. The NCE margin decreased
from 34 per cent to 23 per cent due to the lower rand gold price and higher
NCE.
Beatrix
March December
2012 2011
Gold produced - 000`oz 79.2 89.7
- kg 2,462 2,789
Yield - underground - g/t 4.4 4.2
- combined - g/t 2.5 3.0
Total cash cost - R/kg 260,114 220,222
- US$/oz 1,041 848
Notional cash expenditure - R/kg 308,570 271,172
- US$/oz 1,235 1,044
NCE margin - % 26 38
Gold production decreased from 89,700 ounces (2,789 kilograms) in the December
quarter to 79,200 ounces (2,462 kilograms) in the March quarter and was
affected by the Christmas break and safety related stoppages.
Underground tonnes milled decreased from 647,000 tonnes in the December
quarter to 539,000 tonnes in the March quarter due to a decrease in stoping
volumes. The underground yield improved from 4.2 grams per tonne to 4.4 grams
per tonne due to a higher mine call factor (MCF). Various initiatives were
implemented during the quarter to improve the MCF, including improved
fragmentation management and water control, the latter in an effort to reduce
gold losses due to excessive water on the reef horizon. Surface tonnes milled
increased from 293,000 tonnes to 449,000 tonnes, due to the additional surface
material milled during the Christmas break. Surface yield was similar to the
December quarter at 0.2 grams per tonne.
Main development decreased by 16 per cent from 6,123 metres in the December
quarter to 5,151 metres in the March quarter. The on-reef development
decreased by 2 per cent from 1,352 metres to 1,321 metres and the average main
development value decreased from 1,357 centimetre grams per tonne to 1,320
centimetre grams per tonne in the March quarter.
Operating costs increased from R606 million (US$74 million) in the December
quarter to R630 million (US$81 million) in the March quarter. This increase
was mainly due to salary increases for senior officials, additional overtime,
increased maintenance costs and additional ore transports costs. Total cash
cost increased from R220,222 per kilogram (US$848 per ounce) to R260,114 per
kilogram (US$1,041 per ounce) due to the lower production and higher costs.
Operating profit decreased from R615 million (US$80 million) in the December
quarter to R402 million (US$52 million) in the March quarter due to the lower
revenue and higher operating costs.
Capital expenditure decreased from R150 million (US$18 million) to R130
million (US$17 million) due to the slow start-up of spend on capital at the
beginning of the new financial year. The majority of the capital expenditure
was on infrastructure upgrades and ore reserve development.
Notional cash expenditure increased from R271,172 per kilogram (US$1,044 per
ounce) in the December quarter to R308,570 per kilogram (US$1,235 per ounce)
in the March quarter due to the decreased production and higher operating
costs partly offset by the decrease in capital expenditure. The NCE margin
decreased from 38 per cent to 26 per cent due to the lower rand gold price and
the higher NCE.
South Deep project
March December
2012 2011
Gold produced - 000`oz 58.6 58.5
- kg 1,824 1,821
Yield - underground - g/t 5.3 4.5
- combined - g/t 4.2 3.3
Total cash cost - R/kg 305,976 294,673
- US$/oz 1,225 1,134
Notional cash expenditure - R/kg 670,121 631,301
- US$/oz 2,683 2,430
NCE margin - % (60) (44)
Gold production was similar to the December quarter at 58,600 ounces (1,824
kilograms). Total tonnes milled, which included 94,000 tonnes of off-reef
development, decreased from 549,000 tonnes in the December quarter to 439,000
tonnes in the March quarter. No surface sources were treated due to the
depletion of the surface stockpiles in previous quarters.
Underground ore processed during the quarter decreased from 400,000 tonnes to
345,000 tonnes. Underground yield increased from 4.5 grams per tonne to 5.3
grams per tonne, mainly due to an increase in blasted grade from higher grade
workings. The infrastructure development, which cuts through the lower grade
reefs, is proceeding as per the plan to ensure access to new mining areas in
future.
Development decreased from 3,175 metres in the December quarter to 2,440
metres in the March quarter. The new mine capital development in phase 1, sub
95 level, decreased from 1,069 metres to 688 metres. Development in the
current mine areas above 95 level decreased from 1,838 metres to 1,516 metres.
Vertical development decreased from 268 metres to 236 metres. Development was
lower in the March quarter mainly due to the Christmas break, lower machine
availability and utilisation as well as the installation of additional
secondary support in the haulages. De-stress mining increased by 6 per cent
from 7,373 square metres in the December quarter to 7,811 square metres in the
March quarter.
Operating costs increased from R542 million (US$66 million) in the December
quarter to R567 million (US$73 million) in the March quarter. This increase
was mainly due to overtime worked and major maintenance work over the
Christmas period. In addition, more employees were employed, in line with the
project build-up. Total cash cost increased from R294,673 per kilogram
(US$1,134 per ounce) to R305,976 per kilogram (US$1,225 per ounce) in the
March quarter due to the increase in operating costs.
Operating profit decreased from R256 million (US$32 million) in the December
quarter to R197 million (US$25 million) in the March quarter due to lower
revenue and higher operating costs.
Capital expenditure increased from R607 million (US$77 million) in the
December quarter to R655 million (US$84 million) in the March quarter, in line
with the project plan. The majority of this capital expenditure was spent on
development, the ventilation shaft deepening and infrastructure, the
metallurgical plant expansion, trackless equipment and full plant tailings
backfill.
Notional cash expenditure increased from R631,301 per kilogram (US$2,430 per
ounce) in the December quarter to R670,121 per kilogram (US$2,683 per ounce)
in the March quarter as a result of the higher operating costs and increased
capital expenditure.
The South Deep capital infrastructure programme continues to meet its key
delivery dates to support the build-up to a run-rate of 700,000 ounces per
annum by the end of 2015. The ventilation shaft deepening project remains on
track for commissioning in the September 2012 quarter and the additional rock
hoisting is expected to build to a nameplate capacity of 195,000 tonnes per
month by October 2013. This, together with the existing Main shaft capacity of
175,000 tonnes per month, is expected to deliver the full production to the
mill. The gold plant expansion from 220,000 tonnes per month to 330,000 tonnes
per month is under construction, with commissioning planned in the September
2012 quarter.
However, the issues raised during the strike at South Deep in fiscal 2010
relating to the relationship between the unions and management, greater union
involvement in human resource and other management decision-making processes
at the mine remain unresolved. Gold Fields is currently in discussions with
its unions at South Deep regarding a number of operational and employee
matters and is endeavouring to seek agreement on the unresolved issues. In the
event that South Deep experiences work stoppages or delays due to union
activities, these may have a material adverse effect on the business,
production levels, operating results, financial condition and reputation.
West Africa region
Ghana
Tarkwa
March December
2012 2011
Gold produced - 000`oz 185.3 170.4
Yield - heap leach - g/t 0.5 0.5
- CIL plant - g/t 1.5 1.4
- combined - g/t 1.0 0.9
Total cash cost - US$/oz 595 618
Notional cash expenditure - US$/oz 916 1,022
NCE margin - % 45 39
Gold production increased from 170,400 ounces in the December quarter to
185,300 ounces in the March quarter due to an increase in CIL throughput and a
higher head grade delivered to the mill.
Total tonnes mined, including capital stripping, increased from 30.1 million
tonnes in the December quarter to 33.2 million tonnes in the March quarter.
Ore mined increased from 5.8 million tonnes to 5.9 million tonnes. Mined grade
at 1.28 grams per tonne was marginally higher than the 1.26 grams per tonne
achieved in the December quarter. The strip ratio increased from 4.2 to 4.6 in
the March quarter.
The CIL plant throughput increased from 2.73 million tonnes in the December
quarter to 2.83 million tonnes in the March quarter due to increased mill
availability in the March quarter. Yield increased from 1.36 grams per tonne
to 1.51 grams per tonne due to a reduction in throughput from the low grade
stockpile following the increase in ore tonnages mined. The CIL plant produced
137,500 ounces in the March quarter compared with 119,100 ounces in the
December quarter.
Total feed to the North and South heap leach sections increased from 3.12
million tonnes to 3.18 million tonnes. Yield decreased from 0.51 grams per
tonne for the December quarter to 0.47 grams per tonne for the March quarter.
The High Pressure Grinding Roller (HPGR) at the South heap leach section
processed 1.04 million tonnes, compared with 0.99 million tonnes in the
December quarter. The North heap leach section processed 2.14 million tonnes
in the March quarter, compared with 2.13 million tonnes in the December
quarter. The heap leach operation produced 47,800 ounces in the March quarter
compared with 51,300 ounces in the December quarter. The decrease was
attributable to a decrease in head grade and dissolution due to a harder ore
blend.
Net operating costs increased from US$99 million (R793 million) in the
December quarter to US$106 million (R825 million) in the March quarter in line
with the higher production levels. Total cash cost decreased from US$618 per
ounce to US$595 per ounce due to the increase in production partly offset by
the increase in operating costs.
Operating profit increased from US$185 million (R1,496 million) in the
December quarter to US$205 million (R1,593 million) in the March quarter as a
result of the higher revenue partly offset by the increase in operating costs.
Capital expenditure decreased from US$63 million (R499 million) in the
December quarter to US$47 million (R369 million) in the March quarter, with
expenditure on pre-stripping and additional mining fleet being the major
components.
Notional cash expenditure decreased from US$1,022 per ounce to US$916 per
ounce due to the increase in production and the lower capital expenditure,
partly offset by the increase in operating costs. The NCE margin increased
from 39 per cent to 45 per cent due to the lower NCE.
Damang
March December
2012 2011
Gold produced - 000`oz 44.3 49.6
Yield - g/t 1.1 1.3
Total cash cost - US$/oz 838 796
Notional cash expenditure - US$/oz 1,490 1,240
NCE margin - % 12 26
Gold production decreased from 49,600 ounces in the December quarter to 44,300
ounces in the March quarter. The decrease in gold production was due to lower
grade mainly as a result of less ore mined from the high grade Damang pit
cutback (DPCB) as a result of safety concerns while mining the southern inter-
phase between Juno and DPCB from the Juno side.
Total tonnes mined, including capital stripping, increased from 6.1 million
tonnes in the December quarter to 9.8 million tonnes in the March quarter. The
increase in total tonnes mined was mainly due to increased excavator
availability with the commissioning of two new excavators and the introduction
of an additional shift (from two to three per day), thus providing eight
additional hours per day, which improved utilisation. Ore mined increased from
1.1 million tonnes to 1.5 million tonnes. The strip ratio increased from
4.5 to 5.7.
Tonnes processed increased from 1.19 million tonnes in the December quarter to
1.22 million tonnes in the March quarter as throughput in the December quarter
was affected by power interruptions.
Net operating costs decreased from US$37 million (R295 million) in the
December quarter to US$36 million (R279 million) in the March quarter. This
was mainly due to a gold-in-process credit as a result of an increase in
stockpiles associated with the increase in mining volumes. Total cash cost
increased from US$796 per ounce to US$838 per ounce due to the lower gold
production.
Operating profit decreased from US$47 million (R378 million) in the December
quarter to US$39 million (R302 million) in the March quarter as a result of
the lower revenue.
Capital expenditure was similar at US$27 million (R211 million), comprising
expenditure on pre-stripping, exploration and additional mining fleet.
Notional cash expenditure increased from US$1,240 per ounce in the December
quarter to US$1,490 per ounce in the March quarter due to the lower
production. The NCE margin decreased from 26 per cent to 12 per cent as a
result of the higher NCE.
Subsequent to quarter end, Damang`s gold production decreased due to lower
head grades resulting from continuing safety concerns while mining the
southern inter-phase between Juno and the DPCB. In addition, blending
constraints between hard and soft ores resulted in deteriorating grind and
lower recovery efficiencies. To re-establish control on grind size and
recovery efficiencies the milling rates in the process plant have been
temporarily re-set to lower volumes. As the plant is ageing preventative
maintenance is being increased to provide sustainable processing capacity,
particularly given the increase in reserves and resources and extended life.
Studies with regards to blend, processing rates, recoveries and financial
remodeling to ascertain the impact on the operation are in progress. The
revised production guidance for 2012 is estimated at between 175,000 ounces
and 190,000 ounces. We are reassessing cost structures and capital
requirements on the site and an update on total cash cost and NCE will be
provided at the end of the June quarter.
South America region
Peru
Cerro Corona
March December
2012 2011
Gold produced - 000`oz 36.9 37.9
Copper produced - tonnes 8,073 9,544
Total equivalent gold - 000` eqoz 76.5 80.0
Total equivalent gold sold - 000` eqoz 84.5 78.8
Yield - gold - g/t 0.7 0.7
- copper - % 0.5 0.6
- combined - g/t 1.4 1.5
Total cash cost - US$/eqoz 534 489
Notional cash expenditure - US$/eqoz 745 719
NCE margin - % 56 56
Gold price * - US$/oz 1,685 1,689
Copper price * - US$/t 8,251 7,474
* Average daily spot price for the period used to calculate total equivalent
gold ounces produced.
Gold produced decreased from 37,900 ounces in the December quarter to 36,900
ounces in the March quarter and copper produced decreased from 9,544 tonnes to
8,073 tonnes due to lower copper grades. Equivalent gold production decreased
from 80,000 ounces to 76,500 ounces, mainly due to lower copper production.
Concentrate with a payable content of 40,000 ounces of gold was sold at an
average price of US$1,689 per ounce and 9,000 tonnes of copper was sold at an
average price of US$7,896 per tonne, net of treatment and refining charges.
Total equivalent gold sales for the March quarter amounted to 84,500 ounces.
Tonnes mined increased from 2.89 million tonnes in the December quarter to
3.17 million tonnes in the March quarter and ore mined increased from 1.55
million tonnes to 1.80 million tonnes in line with the mine sequencing
schedule. Gold yield at 0.7 grams per tonne was similar to the December
quarter and copper yield decreased from 0.6 per cent to 0.5 per cent.
Ore processed increased from 1.62 million tonnes to 1.68 million tonnes, at
lower gold and copper grades than the previous quarter. Gold head grade
decreased from 1.18 grams per tonne to 1.12 grams per tonne, while gold
recovery was similar to the December quarter at 64 per cent. Copper head grade
decreased from 0.72 per cent to 0.61 per cent, while copper recovery decreased
from 85 per cent to 82 per cent due to an increase in clays contained in the
ore processed and the presence of secondary copper with lower kinetic
flotation.
Net operating costs increased from US$35 million (R285 million) in the
December quarter to US$44 million (R341 million) in the March quarter, mainly
due to a decrease of concentrate stock on hand. Total cash cost increased from
US$489 per equivalent ounce to US$534 per equivalent ounce, mainly due to
higher net operating costs partly offset by an increase in equivalent ounces
sold.
Operating profit increased from US$94 million (R765 million) to US$99 million
(R766 million) as a result of the higher revenue partly offset by the increase
in operating costs.
Capital expenditure decreased from US$20 million (R161 million) in the
December quarter to US$17 million (R132 million) in the March quarter with the
majority of the expenditure on the tailings facility.
Notional cash expenditure increased from US$719 per equivalent ounce to US$745
per equivalent ounce, mainly due to the lower equivalent ounces produced. The
NCE margin was similar at 56 per cent.
Australasia region
St Ives
March December
2012 2011
Gold produced - 000`oz 120.3 120.4
Yield - heap leach - g/t 0.4 0.4
- milling - g/t 2.9 3.0
- combined - g/t 2.1 2.1
Total cash cost - A$/oz 861 770
- US$/oz 908 777
Notional cash expenditure - A$/oz 1,243 1,355
- US$/oz 1,310 1,368
NCE margin - % 22 19
Gold production for the March quarter was similar to the December quarter at
120,300 ounces.
At the underground operations, ore mined decreased from 482,000 tonnes at 5.2
grams per tonne in the December quarter to 398,000 tonnes at 5.0 grams per
tonne in the March quarter, reflecting reduced tonnage from Cave Rocks which
requires further development to open up new mining areas.
At the open pit operations, total ore tonnes mined decreased from 1.33 million
tonnes at 1.9 grams per tonne in the December quarter to 1.10 million tonnes
at 1.5 grams per tonne in the March quarter. Pit wall failures in the
Leviathan and Mars/Minotaur link high grade pits necessitated the temporary
closure of both pits for a period, with resultant loss of grade and production
during the quarter. A slope stability radar has since been installed in
Leviathan pit and production has recommenced. Geotechnical analysis is in
progress to establish the safe reopening of the Mars/Minotaur link pit.
Total tonnes processed and yield remained unchanged at 1.77 million tonnes and
2.1 grams per tonne respectively. At the Lefroy mill, yield decreased
marginally from 3.0 grams per tonne in the December quarter to 2.9 grams per
tonne in the March quarter. Tonnes milled through the Lefroy mill increased
from 1.18 million tonnes to 1.22 million tonnes, reflecting increased run-time
in the March quarter, due to a SAG mill reline that occurred during the
December quarter. Gold production from Lefroy mill increased marginally from
112,400 ounces to 113,000 ounces. At the heap leach facility tonnes processed
decreased from 590,000 tonnes at a head grade of 0.85 grams per tonne in the
December quarter to 553,000 tonnes at a head grade of 0.81 grams per tonne in
the March quarter, resulting in decreased gold production from 8,000 ounces
to 7,300 ounces.
Net operating costs increased from A$85 million (R711 million) in the December
quarter to A$106 million (R868 million) in the March quarter. The increase in
costs was due to a drawdown of open pit stockpiles, compared to a build-up of
stockpiles reported at the end of the December quarter. Total cash cost
increased from A$770 per ounce (US$777 per ounce) to A$861 per ounce (US$908
per ounce) due to the increase in costs.
Operating profit decreased from A$118 million (R924 million) in the December
quarter to A$86 million (R707 million) in the March quarter as a result of the
higher costs.
Capital expenditure decreased from A$63 million (R494 million) to A$49 million
(R402 million) reflecting a reduction in open pit pre- stripping activities.
Notional cash expenditure decreased from A$1,355 per ounce (US$1,368 per
ounce) in the December quarter to A$1,243 per ounce (US$1,310 per ounce) in
the March quarter due to the decrease in capital expenditure. The NCE margin
increased from 19 per cent to 22 per cent as a result of the lower NCE.
Agnew
March December
2012 2011
Gold produced - 000`oz 37.0 52.0
Yield - g/t 5.1 6.3
Total cash cost - A$/oz 929 651
- US$/oz 979 657
Notional cash expenditure - A$/oz 1,299 1,074
- US$/oz 1,369 1,085
NCE margin - % 18 36
Gold production decreased from 52,000 ounces in the December quarter to 37,000
ounces in the March quarter.
Ore mined from underground decreased from 143,000 tonnes at a head grade of
10.7 grams per tonne in the December quarter to 113,000 tonnes at a head grade
of 8.5 grams per tonne in the March quarter. Production was negatively
impacted in Main Lode due to continuing poor ground conditions which slowed
down production rates. Additionally, the rate of mining in the Kim orebody was
slower than planned due to a change in the plunge of the orebody which
resulted in a move to new working areas which had insufficient ventation. An
ongoing factor further impacting production is the continuing high turnover of
skilled employees.
Ore mined from the Songvang open pit decreased from 361,000 tonnes at a head
grade of 1.6 grams per tonne in the December quarter to 179,000 tonnes at a
head grade of 1.4 grams per tonne in the March quarter. Mining at Songvang was
completed in February 2012.
Tonnes processed decreased from 258,000 tonnes to 224,000 tonnes. A higher
proportion of lower grade ore from Songvang was milled during the quarter
resulting in the combined yield decreasing from 6.3 grams per tonne to 5.1
grams per tonne.
Net operating costs increased from A$32 million (R264 million) in the December
quarter to A$36 million (R293 million) in the March quarter, mainly due to an
A$5 million credit in the December quarter associated with the stockpiling of
Songvang ore and a build-up of gold in circuit. Total cash cost per ounce
increased from A$651 per ounce (US$657 per ounce) to A$929 per ounce (US$979
per ounce) in line with the lower ounces produced.
Operating profit decreased from A$56 million (R444 million) in the December
quarter to A$23 million (R188 million) in the March quarter due to the lower
revenue.
Capital expenditure decreased from A$19 million (R155 million) in the December
quarter to A$11 million (R92 million) in the March quarter. This included A$7
million spent on underground development and A$3 million on extensional
exploration at the Waroonga underground complex.
Notional cash expenditure increased from A$1,074 per ounce (US$1,085 per
ounce) in the December quarter to A$1,299 per ounce (US$1,369 per ounce) in
the December quarter mainly due to the lower production. The NCE margin
decreased from 36 per cent in the December quarter to 18 per cent in the March
quarter due to the higher NCE.
The lower mining volumes and resultant gold production is expected to continue
during the June quarter. This is mainly due to continuing poor ground
conditions in the Main orebody requiring higher levels of ground support and
increased production drilling required due to the instability of the blast
holes linked to difficult ground conditions which often have to be re-drilled.
This level of additional work will likely be required to successfully mine the
Main Lode in future, and the mining schedule has been slowed to reflect this.
Additional tonnes will be mined from the Rajah orebody, within the Waroonga
underground complex, to minimise this impact but these tonnes will not replace
all the lost production from Main.
Additionally, as the high grade Kim orebody has progressed deeper, the
production drilling and blasting has become more technically challenging. This
is due to higher stress at depth which causes rock, mainly the quartz, to
become brittle, resulting in closure of blast holes. These technical
challenges have been compounded by a high turnover of mining engineers and
skilled artisans in the Western Australia mining industry. In the March
quarter several primary "slot" blasts, which are pre-development to access and
open up stopes for mining, were not completed satisfactorily and resulted in
rework that negatively impacted production rates. Improvements to drilling in
these poor ground conditions include higher levels of supervision and improved
drill operator awareness. Additionally, a senior drill and blast manager is
now employed to oversee the technical aspects of the process and ensure blast
quality improves. Introduction of these measures has already improved the
"slot" blasting process, and production from Kim is expected to return to
historical levels by the second half of the year. June quarter`s production is
expected to be similar to the March quarter.
Gold production is expected to improve to the 40,000 ounces to 45,000 ounces
per quarter range in the September and December quarters, but due to the lower
production in the March and June quarters, guidance has been reduced to a
range of 160,000 ounces to 175,000 ounces for the full year. Cash costs and
NCE are being re-assessed and an update is expected by the end of the June
quarter.
Quarter ended 31 March 2012 compared with quarter ended 31 March 2011
Group attributable equivalent gold production decreased marginally from
830,000 ounces for the quarter ended March 2011 to 827,000 ounces for the
quarter ended March 2012.
At the South African operations, gold production decreased from 411,000 ounces
(12,784 kilograms) to 387,000 ounces (12,051 kilograms). The majority of this
decrease was due to lower volumes and yields mined and processed at KDC and
South Deep. KDC`s gold production decreased from 263,000 ounces (8,169
kilograms) to 250,000 ounces (7,765 kilograms). Beatrix`s gold production
increased from 74,000 ounces (2,314 kilograms) to 79,000 ounces (2,462
kilograms) and South Deep`s gold production decreased from 74,000 ounces
(2,301 kilograms) to 59,000 ounces (1,824 kilograms).
At the West African operations, total managed gold production decreased from
244,000 ounces for the quarter ended March 2011 to 230,000 ounces for the
quarter ended March 2012. At Tarkwa, gold production was similar at 185,000
ounces. At Damang, gold production decreased from 58,000 ounces to 44,000
ounces due to lower grades, as mining in the high grade Damang pit was
severely restricted due to safety factors given the pit is approaching its end
in approximately 12 months-time and production was further exacerbated by
reduced capacity at the mill.
In South America, gold equivalent production at Cerro Corona decreased from
108,000 ounces for the quarter ended March 2011 to 77,000 ounces for the
quarter ended March 2012, due to anticipated lower gold and copper grades and
a lower copper to gold price ratio.
At the Australasia operations gold production was similar at 157,000 ounces.
St Ives and Agnew produced similar ounces to the previous year at 120,000
ounces and 37,000 ounces respectively.
Income statement
Revenue increased by 25 per cent from R8,969 million (US$1,285 million) to
R11,206 million (US$1,442 million). The average gold price increased by 35 per
cent from R311,708 per kilogram (US$1,389 per ounce) for the quarter ended
March 2011 to R419,433 per kilogram (US$1,679 per ounce) for the quarter ended
March 2012. The average Rand/US dollar exchange rate of R7.77 for the quarter
ended March 2012 was 11 per cent weaker than the average of R6.98 for the
quarter ended March 2011, while the Rand/Australian dollar weakened by 17 per
cent from A$1 = R7.00 to A$1 = R8.19. The average Australian/US dollar
exchange rate weakened by 5 per cent from to A$1.00 = US$1.05 for the quarter
ended March 2012 from A$1.00 = US$1.00 for the quarter ended March 2011.
Net operating costs increased by 18 per cent from R4,878 million (US$699
million) to R5,774 million (US$743 million). Total cash cost for the Group
increased from R168,455 per kilogram (US$751 per ounce) to R217,434 per
kilogram (US$870 per ounce) due to the lower production and the increase in
net operating costs.
At the South African operations, operating costs increased by 14 per cent from
R2,783 million for the quarter ended March 2011 to R3,168 million for the
quarter ended March 2012. This was due to annual wage increases, a 28 per cent
electricity tariff increase, increased maintenance costs and normal
inflationary increases, partly offset by cost saving initiatives at the
operations. Total cash cost at the South African operations increased from
R213,759 per kilogram to R264,069 per kilogram as a result of the decrease in
production and the higher operating costs.
At the West African operations, net operating costs increased from US$122
million for the quarter ended March 2011 to US$142 million for the quarter
ended March 2012. At Tarkwa, net operating costs increased from US$83 million
to US$106 million. This was due to annual wage increases of US$2 million,
increased power and fuel costs of US$7 million and a reduced inventory credit
in the March 2012 quarter of US$7 million together with an increase in tonnes
mined quarter on quarter. At Damang, net operating costs decreased from US$39
million to US$36 million due to the introduction of owner mining and
maintenance during the year partly offset by increases in power and fuel
costs. Total cash cost for the region increased from US$521 per ounce to
US$642 per ounce due to the lower production and increased costs.
At Cerro Corona in South America, net operating costs were similar at US$44
million. Total cash cost increased from US$387 per ounce to US$534 per ounce,
mainly due to the lower equivalent gold sales.
At the Australasia operations, net operating costs increased from A$134
million for the quarter ended March 2011 to A$142 million for the quarter
ended March 2012. At St Ives, net operating costs increased marginally from
A$105 million to A$106 million. At Agnew, net operating costs increased from
A$29 million to A$36 million. This increase was due to mining the Songvang
open pit, which became operational during the year and accounted for US$5
million of this increase, together with the increase in processing higher
volume low grade ore. Total cash costs for the region increased from A$835 per
ounce to A$877 per ounce due to the increase in costs.
Operating profit increased from R4,091 million (US$586 million) to R5,433
million (US$699 million).
Exploration expenditure increased from R139 million (US$20 million) to R292
million (US$38 million) mainly due to an increase in exploration projects and
activity.
Feasibility and evaluation costs increased from R27 million (US$4 million) to
R76 million (US$10 million) due to increased activity at the Far Southeast
project.
Non-recurring costs of R79 million (US$10 million) for the quarter ended March
2012 compared with R83 million (US$12 million) for the quarter ended March
2011 and included voluntary separation packages and business process re-
engineering costs at all the operations.
Government royalties increased from R165 million (US$24 million) for the
quarter ended March 2011 to R318 million (US$41 million) for the quarter ended
March 2012 driven by the increase in revenue and an increase in the royalty
rate at Tarkwa and Damang, from 3 per cent to 5 per cent with effect from 1
April 2011.
Taxation increased from R780 million (US$112 million) for the quarter ended
March 2011 to R792 million (US$102 million) for the quarter ended March 2012.
Normal taxation increased from R600 million (US$86 million) to R885 million
(US$114 million) in line with the higher taxable income. Deferred taxation
decreased from R180 million (US$25 million) to a credit of R93 million (US$12
million) due to a net deferred tax credit of R255 million (US$33 million) as a
result of the rate changes in South Africa and Ghana implemented in the March
2012 quarter.
Net earnings attributable to owners of the parent amounted to R2,082 million
(US$268 million) for the March quarter 2012 compared with earnings of R1,100
million (US$158 million) for March quarter 2011.
Earnings excluding non-recurring items, gains and losses on foreign exchange,
financial instruments and gains or losses of associates after taxation,
amounted to R2,171 million (US$279 million) for the quarter ended March 2012
compared with R1,152 million (US$165 million) for the quarter ended March
2011.
Cash flow
Cash inflow from operating activities decreased from R2,783 million (US$398
million) for the quarter ended March 2011 to R2,742 million (US$360 million)
for the quarter ended March 2012 despite the higher profit in March 2012, this
was offset by higher royalties and taxation paid, and a larger investment into
working capital.
Dividends paid increased from R564 million (US$82 million) to R1,702 million
(US$225 million).
Cash outflows from investing activities increased from R3,422 million (US$492
million) to R3,489 million (US$452 million).
Capital expenditure increased from R2,069 million (US$296 million) in the
March 2011 quarter to R2,650 million (US$341 million) in the March 2012
quarter. At the South Africa region, capital expenditure increased from R995
million to R1,317 million mainly due to the increase at South Deep from R411
million to R655 million. At the West Africa region, capital expenditure
decreased from US$84 million to US$75 million with the completion of the
tailings dam (TSF3) in March 2011. In South America, at Cerro Corona, capital
expenditure was similar at US$17 million. At the Australasia region, capital
expenditure increased from A$39 million to A$60 million, with the majority of
the increased expenditure on pre-stripping and underground development at St
Ives.
Investing activities in the March 2012 quarter included a US$110 million (R834
million) investment into the Far Southeast project, thus vesting a 40 per cent
interest in the project.
Investing activities in March 2011 included the buy-out of some of the non-
controlling interest holders at La Cima of R1,368 million (US$198 million)
representing 9 per cent of the issued shares of Gold Fields La Cima, taking
the Group`s holding at that stage to 89.7 per cent.
Net cash inflow from financing activities decreased from R2,278 million
(US$330 million) for March 2011 to R1,744 million (US$230 million) for March
2012. Loans received decreased from R3,172 million (US$458 million) to R1,834
million (US$242 million) and loans repaid decreased from R950 million (US$136
million) to R137 million (US$18 million). The higher net loans raised in March
2011 were due to draw downs to partly fund the purchase of non-controlling
interest holders in La Cima.
Loans received from non-controlling interest holders increased from R42
million (US$6 million) in March 2011 to R46 million (US$6 million) in March
2012 and relate to Buenaventura`s contribution of 49 per cent to the capital
expenditure on the Chucapaca project.
The net cash inflow of R704 million (US$86 million) in March 2012 compares
with a cash outflow of R1,074 million (US$154 million) in March 2011. After
accounting for a negative translation adjustment in the March 2012 quarter of
R193 million (positive US$22 million) on offshore cash balances, the cash
outflow for March 2012 was R897 million (outflow US$64 million). The cash
balance at the end of March 2012 was R5.2 billion (US$680 million) compared
with R6.6 billion (US$954 million) at the end of March 2011.
Growth
Gold Fields has set a target of achieving five million ounces per annum, in
production or in development, by the end of 2015. To this end we are
developing an extensive pipeline of projects which is discussed below.
International Projects
Chucapaca
Ongoing feasibility studies on the Canahuire deposit at Chucapaca identified
alternate waste and tailings storage sites. Drilling for geotechnical,
geohydrological and sterilisation purposes of these new sites is underway and
is expected to be completed during May 2012. Despite this additional work, the
feasibility study remains on track for completion in the second half of 2012.
The remaining feasibility study works are progressing well, with particular
focus on optimising recoveries and plant design, and permitting requirements.
The Environmental Impact Assessment ("EIA") for the project is being prepared
and will be submitted on completion of the feasibility study.
Extensive community engagement programmes and activities have continued. A
variety of projects supporting the livelihoods of the local communities are
proving positive, and include training programmes and activities,
infrastructure construction and direct employment on the project. Frequent
dialogue with the local and national authorities on project progress and
requirements remains a constant and positive activity.
Far Southeast
On 20 March 2012, Gold Fields made a third payment of US$110 million to
exercise the Group`s 40 per cent option in the Far Southeast project. Gold
Fields now hold a 40 per cent interest in this project. The decision to
exercise the option earlier than originally planned was twofold: the due
diligence and scoping study results to date are positive and demonstrate
significant upside to the resource potential. By acquiring ownership of 40 per
cent, the Group now has an interest and a formal relationship with our
Filipino stakeholders. A further option to acquire an additional 20 per cent
stake from Lepanto Consolidated Mining Company for an additional payment of
US$110 million has been retained; if exercised, it would increase the total
Gold Fields interest in Far Southeast to 60 per cent.
On-going due diligence and scoping studies assessing various bulk underground
mining options are progressing well. A pre-feasibility study has commenced on
the project focussing on the initial exploration target reported previously.
Rehabilitation of the underground drilling platform lost to a flooding event
in October 2011 was completed ahead of schedule in February 2012. Four new
underground drilling rigs were in operation by the end of the March quarter,
in addition to a single surface diamond drilling machine. Activities are
focussing on infilling the exploration target zone to a level appropriate for
a resource declaration and mine planning activities as part of the planned pre-
feasibility study.
Arctic Platinum
The Suhanko pre-feasibility study continued, focussing on re-engineering the
project to fully optimise the potential capital spend. This includes a full
review of the process plant design and infrastructure, optimisation of the
mining schedules and definition of additional resources at the Suhanko North
prospect.
The major activity focussed on the completion of resource drilling at the
Suhanko North prospect. An initial 30,000 metres of exploration drilling was
completed ahead of schedule in February 2012. This programme successfully
outlined an exploration target of 50 million tonnes to 100 million tonnes of
PGE (platinum group elements) mineralisation at a similar grade of 2PGE+Au
1.72 grams per tonne to the Ahmavaara resource. Drilling was completed to a
level suitable for declaration of a Mineral Resource, which Gold Fields hopes
to finalise in the second half of 2012. This resource would add considerable
operating flexibility to the pre-feasibility study options and also provide
additional ore beyond the current 14-year life estimate for the Suhanko
project.
Bench-scale metallurgical test work is also being completed on drill-core
samples collected from the Suhanko North programme, including mineralogical
studies, flotation test work and PlatsolRegistered amenability testing. This
data will be utilised to develop a more detailed test programme on a bulk
metallurgical sample currently being compiled from a new Suhanko North drill
core which will complement the work completed for the Suhanko project in 2011.
The amendment to the valid Suhanko Environmental Permit, for inclusion of the
PlatsolRegistered hydro-metallurgical process and associated plant
infrastructure, was completed and reviewed for submission to the environmental
authorities in Finland. The submission was made in March 2012. An additional
EIA and mining lease application will be submitted later in 2012 to cover
Suhanko North and other extensional deposits adjacent to the Suhanko project.
We anticipate completion of the pre-feasibility study, incorporating the
Suhanko North extension area, by the end of 2012.
Damang Super-pit
All drilling activities were completed and resource models finalised for
execution of the pre-feasibility study. Geology, mining and metallurgical
components of the study indicate a robust project (under prior tax conditions)
with key study parameters consistent with initial expectations. All other
activities, including engineering and environmental considerations are on
schedule for completion of the pre-feasibility study in the first half of
2012.
The tax changes discussed earlier will negatively impact the project and it is
not known at this stage whether this project will proceed as currently
planned. We intend to continue discussions with the Government.
Greenfields exploration
In addition to the four resource development projects mentioned above, the
greenfields exploration portfolio also consists of three advanced drilling
projects, thirteen initial drilling projects and four target definition
projects in Peru, Chile, Argentina, Ghana, Mali, Guinea, Canada, Kyrgyzstan,
Australia and the Philippines. A total of 99,800 metres were drilled on nine
greenfields projects during the quarter compared with 62,348 metres drilled in
the previous quarter and 112,805 metres in the March 2011 quarter.
Africa
A total of 57,000 metres of drilling was completed in the region on eight
projects covering all stages from target definition to advanced drilling.
Extensive geophysical surveys and soil sampling programmes complemented the
drilling activities to assist with on-going targeting and generation of new
early stage prospects.
The major project in the region remains the Yanfolila advanced drilling
project in southern Mali. A further three prospects are expected to be drilled
during the June quarter depending on the political situation, and the
additional data generated will be used to update the Komana scoping study. As
a result of a military-led coup d`etat which took place in Mali on 21 March
2012, all expatriate Gold Fields employees were evacuated from the country on
28 March 2012. Employees were not endangered during this time. Drilling was
suspended by the contractor on 30 March 2012, but was resumed with two rigs on
13 April 2012.
North America
Gold Fields completed a maiden resource study on the Woodjam project in
British Columbia, Canada, which was released in February 2012. The copper-
dominant resource was reported for the South East Zone porphyry at Woodjam
South. Additional prospects at Deerhorn and Megabuck, also on the Woodjam
properties, require additional drilling to complete resource modelling. New
drilling programmes commenced in late March 2012.
Gold Fields executed a definitive agreement with Cascadero Copper on their
Marble Mountain project in Ontario. This provides Gold Fields with a first
project in the highly prospective Ontario gold province and initial field work
is expected to commence in the June quarter.
South America
Gold Fields ramped up drilling efforts in southern Peru (two projects),
northern Chile (two projects) and the newly established Argentina base (one
project). Diamond and reverse circulation drilling will continue in the June
quarter and is scheduled to slow down towards the end of the quarter with the
onset of the winter season.
Australasia
Gold Fields has been operating in the East Lachlan region of New South Wales,
Australia, for over 6 years on multiple projects. At the Wellington North
joint venture, initial drilling commenced in the March quarter with positive
early results. Aircore drilling continued to define several compelling targets
at the Myall joint venture and follow-up diamond drilling is scheduled for the
June quarter.
Other regions
In north-western Kyrgyzstan, Gold Fields owns a 60 per cent interest in the
Talas joint venture with partner Orsu Metals Corporation. Field work was
suspended in April 2010 due to on-going social and political unrest which
began with a revolution precipitating a presidential election process.
Following the election of the new President in October 2011, a new government
was established. Gold Fields and its partner have been closely monitoring the
political situation in-country and are now planning to re-commence drilling in
the June quarter.
Near mine exploration
Gold Fields has had a well-supported near mine exploration programme over a
number of years, successfully replacing production and growing the reserve
base at our international operations. Exploration success immediately adds
valuable life-of-mine to these established assets which forms the sustaining
foundation of our overall growth strategy. In 2012 the Group plans to spend in
excess of US$60 million on projects at the international operations, with some
encouraging prospects emerging.
In Ghana, drilling at Damang continues to focus on extending the previously
lucrative Amoanda open pit to increase reserves to complement the Damang
Superpit project. Concepts are being tested with the aim of defining
substantial cut-back potential in the favourable and highly prospective
mineralised corridor between Amoanda and Damang. The first pass programmes
were completed with results confirming an extension to the north of the
Amoanda pit. Further analysis, modeling, and evaluation will be completed
during the year.
In Peru, at Cerro Corona, another concept being assessed this year is the
extension of mineralisation to significant depths below the current reserve
pit. There are many instances around the world of similar pencil gold-copper
porphyry systems extending to depths far greater than that tested at Cerro
Corona. This quarter the Group commenced planning a first pass deep drilling
programme. The aim is to identify an exploration target capable of supporting
large scale underground mining opportunities.
In Australia, St Ives has had an exceptionally productive near mine
exploration effort since Gold Fields assumed operations just over ten years
ago, with more than 5.5 million ounces of gold being discovered. The site
remains at the forefront of innovative exploration thinking and technology.
Following a year where the Group once again replaced production from this
complex of underground and open pit mining centers, Gold Fields plans to spend
in excess of US$35 million in 2012 on near mine exploration. Immediate focus
of drilling has been on the extension of resources in the Neptune- Revenge
area, the site of prolific open pit production in excess of 1.5 million
ounces. Recent drilling continues to prove positive, with new extensions found
almost on a monthly basis. Significant effort will also be focused on early
stage exploration this year, searching for new deposits to fill the longer
term St Ives production pipeline, with more than ten targets already tested in
2012.
The Waroonga mining complex at Agnew has been a consistent source of high
grade ore feed for a number of years and continues to comprise the bulk of the
Agnew production and ore reserve. A comprehensive deep drilling campaign is on-
going, looking for extensions to mineralisation in a variety of different ore
shoots in this complex. The current campaign, named the High Grade Shoots
project, has outlined three shoot structures to the north of the Kim Lode.
Resource modeling is ongoing, aiming to be completed by mid-year. Drilling
will also continue in the Link target area between Kim and the High Grade
shoots, an area where thick high grade mineralisation was intersected during
2011.
Corporate
Mineral Resources and Mineral Reserves
Gold Fields published its Mineral Resource and Mineral Reserve supplement to
the 2011 Integrated Annual Review during the quarter, which is also available
on the Gold Fields website at www.goldfields.co.za.
As at 31 December 2011, Gold Fields Limited had total attributable precious
metal and gold equivalent Mineral Resources of 217.0 million ounces (31
December 2010 : 225.4 million ounces) and Mineral Reserves of 80.6 million
ounces (76.7 million ounces).
Outlook
Attributable gold production for the year ending December 2012 is expected to
be approximately 3.5 million attributable equivalent ounces.
For the year ending December 2012, total cash cost and operational NCE is
estimated to be similar to the guidance provided in February at US$860 per
ounce (R220,000 per kilogram) and at US$1,300 per ounce (R335,000 per
kilogram) respectively. The capital projects group is anticipating spending
between US$40 per ounce and US$70 per ounce on realisation costs of projects,
including drilling, feasibility studies and early-work capital expenditure on
our advanced projects. These projects will assist in delivering our 5 million
ounces in production or in development by 2015. These estimates are based on
an average exchange rate of R/US$8.00 and US$/A$1.00 for the remainder of the
year. Estimates by quarter are expected to vary depending upon the timing of
capital expenditure, seasonal electricity tariffs and production variations
due to statutory holidays.
The above is subject to safety performance which limits the impact of safety-
related stoppages and the forward looking statement in this report.
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
17 May 2012
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand Quarter
March December March
2012 2011 2011
Revenue 11,206.4 12,266.9 8,969.4
Operating costs, net (5,773.8) (5,358.6) (4,878.4)
- Operating costs (5,857.3) (5,651.9) (4,959.0)
- Gold inventory change 83.5 293.3 80.6
Operating profit 5,432.6 6,908.3 4,091.0
Amortisation and depreciation (1,522.0) (1,761.3) (1,240.0)
Net operating profit 3,910.6 5,147.0 2,851.0
Net interest paid (44.7) (61.1) (40.9)
Share of results of associates after
taxation 18.0 26.8 (3.5)
(Loss)/gain on foreign exchange (66.2) 9.6 3.0
(Loss)/gain on financial instruments (1.2) 0.9 6.4
Share-based payments (143.7) (113.2) (122.0)
Other (1.1) (2.1) (76.1)
Exploration (292.0) (291.6) (138.5)
Feasibility and evaluation costs (76.1) (33.1) (27.3)
Profit before royalties, taxation and
non-recurring items 3,303.6 4,683.2 2,452.1
Non-recurring items (78.9) (132.5) (82.6)
Profit before royalties and taxation 3,224.7 4,550.7 2,369.5
Royalties (318.1) (375.5) (164.6)
Profit before taxation 2,906.6 4,175.2 2,204.9
Mining and income taxation (791.8) (1,466.0) (780.0)
- Normal taxation (885.0) (1,190.0) (599.8)
- Deferred taxation 93.2 (276.0) (180.2)
Net profit 2,114.8 2,709.2 1,424.9
Attributable to:
- Owners of the parent 2,081.7 2,604.9 1,100.4
- Non-controlling interest 33.1 104.3 324.5
Non-recurring items:
Profit on sale of investments - 92.6 -
Profit/(loss) on sale of assets 1.7 0.5 (1.3)
Restructuring costs (63.3) (143.6) (84.6)
Impairment of investments and assets (17.3) (70.5) -
Other - (11.5) 3.3
Total non-recurring items (78.9) (132.5) (82.6)
Taxation 18.3 53.0 25.9
Net non-recurring items after taxation (60.6) (79.5) (56.7)
Net earnings 2,081.7 2,604.9 1,100.4
Net earnings per share (cents) 288 361 153
Diluted earnings per share (cents) 287 357 151
Headline earnings 2,097.6 2,581.7 1,101.4
Headline earnings per share (cents) 290 357 153
Diluted headline earnings per share (cents) 289 353 151
Net earnings excluding gains and losses
on foreign exchange, financial
instruments, non-recurring items
and share of results of associates after
royalties and taxation 2,170.8 2,652.9 1,151.7
Net earnings per share excluding gains
and losses on foreign exchange,
financial instruments, non-
recurring items and share of results of
associates after royalties and taxation
(cents) 300 368 160
Gold sold - managed kg 26,718 28,157 28,775
Gold price received R/kg 419,433 435,661 311,708
Total cash cost R/kg 217,434 199,155 168,455
The unaudited consolidated financial statements for the quarter ended 31 March
2012 have been prepared by the corporate accounting staff of Gold Fields
Limited headed by Mrs Tzvet Ilarionova, the Group`s Financial Controller. This
process was supervised by Mr Paul Schmidt, the Group`s Chief Financial
Officer.
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
United States Dollars Quarter
March December March
2012 2011 2011
Revenue 1,442.3 1,533.5 1,285.0
Operating costs, net (743.1) (656.1) (699.0)
- Operating costs (753.8) (695.3) (710.5)
- Gold inventory change 10.7 39.2 11.5
Operating profit 699.2 877.4 586.0
Amortisation and depreciation (195.9) (222.2) (177.7)
Net operating profit 503.3 655.2 408.3
Net interest paid (5.8) (7.6) (5.9)
Share of results of associates after taxation 2.3 3.7 (0.5)
(Loss)/gain on foreign exchange (8.5) 1.0 0.4
(Loss)/gain on financial instruments (0.2) - 0.9
Share-based payments (18.5) (13.6) (17.5)
Other (0.1) 1.0 (10.6)
Exploration (37.6) (37.3) (19.9)
Feasibility and evaluation costs (9.8) (4.1) (3.9)
Profit before royalties, taxation and
non-recurring items 425.1 598.3 351.3
Non-recurring items (10.2) (16.4) (11.8)
Profit before royalties and taxation 414.9 581.9 339.5
Royalties (40.9) (48.0) (23.6)
Profit before taxation 374.0 533.9 315.9
Mining and income taxation (101.9) (187.0) (111.7)
- Normal taxation (113.9) (153.9) (85.9)
- Deferred taxation 12.0 (33.1) (25.8)
Net profit 272.1 346.9 204.2
- Owners of the parents 267.8 336.2 157.7
- Non-controlling interest 4.3 10.7 46.5
Non-recurring items:
Profit on sale of investments - 12.8 -
Profit/(loss) on sale of assets 0.2 0.1 (0.2)
Restructuring costs (8.2) (18.1) (12.1)
Impairment of investments and assets (2.2) (9.8) -
Other - (1.4) 0.5
Total non-recurring items (10.2) (16.4) (11.8)
Taxation 2.4 6.7 3.7
Net non-recurring items after taxation (7.8) (9.7) (8.1)
Net earnings 267.8 336.2 157.7
Net earnings per share (cents) 37 47 22
Diluted earnings per share (cents) 37 46 22
Headline earnings 269.9 333.0 157.9
Headline earnings per share (cents) 37 46 22
Diluted headline earnings per share (cents) 37 46 22
Net earnings excluding gains and losses on
foreign exchange, financial instruments,
non-recurring items
and share of results of associates after
royalties and taxation 279.4 341.8 165.0
Net earnings per share excluding gains and
losses on foreign exchange, financial
instruments, non-
recurring items and share of results of
associates after royalties and taxation (cents) 39 47 23
South African rand/United States dollar
conversion rate 7.77 8.08 6.98
South African rand/Australian dollar
conversion rate 8.19 8.16 7.00
Gold sold - managed oz (000) 859 905 925
Gold price received US$/oz 1,679 1,677 1,389
Total cash cost US$/oz 870 767 751
Statement of comprehensive income
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand Quarter
March December March
2011
2012 2011
Net profit 2,114.8 2,709.2 1,424.9
Other comprehensive (expenses)/income net
of tax (371.1) 24.9 397.1
Marked to market valuation of listed
investments 67.5 (213.5) 28.0
Currency translation adjustments and other (430.6) 222.9 367.3
Deferred taxation on marked to market
valuation of listed investments (8.0) 15.5 1.8
Total comprehensive income 1,743.7 2,734.1 1,822.0
Attributable to:
- Owners of the parent 1,710.6 2,613.4 1,497.2
- Non-controlling interest 33.1 120.7 324.8
1,743.7 2,734.1 1,822.0
Statement of comprehensive income
International Financial Reporting Standards
Basis
Figures are in millions unless otherwise stated
United States Dollars Quarter
March December March
2011
2012 2011
272.1 346.9 204.2
Net profit
Other comprehensive income/(expenses) net
of tax 387.9 (31.2) (110.4)
Marked to market valuation of listed
investments 8.7 (29.6) 4.0
Currency translation adjustments and other 380.2 (3.8) (114.7)
Deferred taxation on marked to market
valuation of listed investments (1.0) 2.2 0.3
Total comprehensive income 660.0 315.7 93.8
Attributable to:
- Owners of the parent 645.0 301.2 58.2
- Non-controlling interest 15.0 14.5 35.6
660.0 315.7 93.8
Statement of financial position
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand United States Dollars
March December March December
2012 2011 2012 2011
Property, plant and equipment 62,328.8 62,682.8 8,222.8 7,710.1
Goodwill 4,458.9 4,458.9 588.2 548.5
Non-current assets 1,330.8 1,313.3 175.6 161.5
Investments 2,628.5 820.6 346.8 100.9
Deferred taxation 424.3 930.4 56.0 114.4
Current assets 12,385.3 14,076.0 1,634.0 1,731.3
- Other current assets 7,233.4 8,027.0 954.3 987.3
- Cash and deposits 5,151.9 6,049.0 679.7 744.0
Total assets 83,556.6 84,282.0 11,023.4 10,366.7
Shareholders` equity 48,319.8 48,061.5 6,374.8 5,911.6
Deferred taxation 8,963.4 9,777.5 1,182.5 1,202.6
Long-term loans 12,013.5 11,062.3 1,584.9 1,360.7
Environmental rehabilitation
provisions 3,138.4 3,190.3 414.0 392.4
Post-retirement health care
provisions 16.9 16.8 2.2 2.1
Other long-term provisions 110.0 110.0 14.5 13.5
Current liabilities 10,994.6 12,063.6 1,450.5 1,483.8
- Other current liabilities 6,848.3 7,616.5 903.5 936.8
- Current portion of
long-term loans 4,146.3 4,447.1 547.0 547.0
Total equity and liabilities 83,556.6 84,282.0 11,023.4 10,366.7
South African rand/US dollar
conversion rate 7.58 8.13
South African rand/Australian
dollar conversion rate 7.98 8.25
Net debt 11,007.9 9,460.4 1,452.2 1,163.7
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 2011 31,526.3 2,065.5 13,295.1
Total comprehensive (expenses)/income - (371.1) 2,081.7
Profit for the period - - 2,081.7
Other comprehensive (expenses)/income - (371.1) -
Dividends paid - - (1,677.3)
Share-based payments - 143.7 -
Transactions with non-controlling interest - - -
Loans received from non-controlling interest - - -
Exercise of employee share options 1.7 - -
Balance as at 31 March 2012 31,528.0 1,838.1 13,699.5
Non-controlling Total
interest equity
Balance as at 31 December 2011 1,174.6 48,061.5
Total comprehensive (expenses)/income 33.1 1,743.7
Profit for the period 33.1 2,114.8
Other comprehensive (expenses)/income - (371.1)
Dividends paid - (1,677.3)
Share-based payments - 143.7
Transactions with non-controlling interest 0.7 0.7
Loans received from non-controlling interest 45.8 45.8
Exercise of employee share options - 1.7
Balance as at 31 March 2012 1,254.2 48,319.8
United States Dollars
Share capital Other Retained
and premium reserves earnings
Balance as at 31 December 2011 4,597.9 (605.6) 1,774.8
Total comprehensive income - 377.2 267.8
Profit for the period - - 267.8
Other comprehensive income - 377.2 -
Dividends paid - - (221.5)
Share-based payments - 18.5 -
Transactions with non-controlling interest - - -
Loans received from non-controlling interest - - -
Exercise of employee share options 0.2 - -
Balance as at 31 March 2012 4,598.1 (209.9) 1,821.1
Non-controlling Total
interest equity
Balance as at 31 December 2011 144.5 5,911.6
Total comprehensive income 15.0 660.0
Profit for the period 4.3 272.1
Other comprehensive income 10.7 387.9
Dividends paid - (221.5)
Share-based payments - 18.5
Transactions with non-controlling interest 0.1 0.1
Loans received from non-controlling interest 5.9 5.9
Exercise of employee share options - 0.2
Balance as at 31 March 2012 165.5 6,374.8
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 - 396.8 1,100.4
Profit for the quarter - - 1,100.4
Other comprehensive income - 396.8 -
Dividends paid - - (505.8)
Share-based payments - 122.0 -
Transactions with non-controlling interest - - -
Purchase of non-controlling interest - - (853.6)
Treasury shares (81.4) - -
Exercise of employee share options 13.8 - -
Balance as at 31 March 2011 31,493.0 480.5 11,760.8
Non-controlling Total
interest equity
Balance as at 31 December 2010 3,080.4 46,622.5
Total comprehensive income 324.8 1,822.0
Profit for the quarter 324.5 1,424.9
Other comprehensive income 0.3 397.1
Dividends paid - (505.8)
Share-based payments - 122.0
Transactions with non-controlling interest 41.9 41.9
Purchase of non-controlling interest (514.8) (1,368.4)
Treasury shares - (81.4)
Exercise of employee share options - 13.8
Balance as at 31 March 2011 2,932.3 46,666.6
United States Dollars
Share capital Other Retained
and premium reserves earnings
Balance as at 31 December 2010 4,602.7 207.4 1,640.6
Total comprehensive (expenses)/income - (99.5) 157.7
Profit for the quarter - - 157.7
Other comprehensive expenses - (99.5) -
Dividends paid - - (73.2)
Share-based payments - 17.5 -
Transactions with non-controlling interest - - -
Purchase of non-controlling interest - - (123.3)
Treasury shares (11.8) - -
Exercise of employee share options 2.0 - -
Balance as at 31 March 2011 4,592.9 125.4 1,601.8
Non-controlling Total
interest equity
Balance as at 31 December 2010 456.4 6,907.1
Total comprehensive (expenses)/income 35.6 93.8
Profit for the quarter 46.5 204.2
Other comprehensive expenses (10.9) (110.4)
Dividends paid - (73.2)
Share-based payments - 17.5
Transactions with non-controlling interest 6.1 6.1
Purchase of non-controlling interest (74.4) (197.7)
Treasury shares - (11.8)
Exercise of employee share options - 2.0
Balance as at 31 March 2011 423.7 6,743.8
Statement of cash flows
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand Quarter
March December March
2012 2011 2011
Cash flows from operating activities 2,742.2 4,952.8 2,782.5
Profit before royalties, tax and
non-recurring items 3,303.6 4,683.2 2,452.1
Non-recurring items (78.9) (132.5) (82.6)
Amortisation and depreciation 1,522.0 1,761.3 1,240.0
South Deep BEE dividend paid - - (21.4)
Change in working capital (519.0) (389.3) (290.6)
Royalties and taxation paid (1,635.6) (1,000.4) (662.0)
Other non-cash items 150.1 30.5 147.0
Dividends paid (1,701.5) (88.4) (564.4)
Owners of the parent (1,677.3) - (505.8)
Non-controlling interest holders (24.2) (88.4) (58.6)
Cash flows from investing activities (3,488.8) (3,345.6) (3,422.4)
Capital expenditure - additions (2,649.7) (3,242.2) (2,068.6)
Capital expenditure - proceeds on disposal 1.7 20.7 8.7
Payment for FSE (833.8) - -
Payment for Bezant - (55.4) -
La Cima non-controlling interest buy-out (0.1) (1.5) (1,368.4)
South Deep non-controlling interest buy-out - (50.7) -
Purchase of investments (1.0) - (0.7)
Proceeds on disposal of investments 4.4 62.1 11.5
Environmental and post-retirement health
care payments (10.3) (78.6) (4.9)
Cash flows from financing activities 1,744.4 21.3 2,277.8
Loans received 1,833.8 687.0 3,171.8
Loans repaid (136.9) (756.1) (949.7)
Non-controlling interest holders`
loans repaid - - -
Non-controlling interest holders`
loans received 45.8 72.9 41.9
Shares issued 1.7 17.5 13.8
Net cash (outflow)/inflow (703.7) 1,540.1 1,073.5
Translation adjustment (193.4) 74.2 65.9
Cash at beginning of period 6,049.0 4,434.7 5,463.8
Cash at end of period 5,151.9 6,049.0 6,603.2
Cash flow from operating activities less
capital expenditure - additions 92.5 1,710.6 713.9
United States Dollars Quarter
March December March
2012 2011 2011
Cash flows from operating activities 359.8 615.4 397.6
Profit before royalties, tax and
non-recurring items 425.1 598.3 351.3
Non-recurring items (10.2) (16.4) (11.8)
Amortisation and depreciation 195.9 222.2 177.7
South Deep BEE dividend paid - 0.1 (3.1)
Change in working capital (66.8) (54.6) (41.6)
Royalties and taxation paid (203.5) (135.8) (96.0)
Other non-cash items 19.3 1.6 21.1
Dividends paid (224.5) (11.0) (81.9)
Owners of the parent (221.5) - (73.2)
Non-controlling interest holders (3.0) (11.0) (8.7)
Cash flows from investing activities (451.6) (423.2) (492.1)
Capital expenditure - additions (341.0) (410.2) (296.4)
Capital expenditure - proceeds on disposal 0.2 2.8 1.2
Payment for FSE (110.0) - -
Payment for Bezant - (7.0) -
La Cima non-controlling interest buy-out - (0.2) (197.7)
South Deep non-controlling interest buy-out - (6.3) -
Purchase of investments (0.1) - (0.1)
Proceeds on disposal of investments 0.6 8.4 1.6
Environmental and post-retirement health
care payments (1.3) (10.7) (0.7)
Cash flows from financing activities 230.0 1.2 330.2
Loans received 241.9 83.0 458.2
Loans repaid (18.0) (93.0) (136.1)
Non-controlling interest holders` loans repaid - - -
Non-controlling interest holders`
loans received 5.9 9.0 6.1
Shares issued 0.2 2.2 2.0
Net cash (outflow)/inflow (86.3) 182.4 153.8
Translation adjustment 22.0 14.1 (9.1)
Cash at beginning of period 744.0 547.5 809.5
Cash at end of period 679.7 744.0 954.2
Cash flow from operating activities less
capital expenditure - additions 18.8 205.2 101.2
Reconciliation of headline earnings with net earnings
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand Quarter
March December March
2012 2011 2011
Net earnings 2,081.7 2,604.9 1,100.4
Profit on sale of investments - (92.6) -
Taxation effect on sale of investments - 19.5 -
(Profit)/loss on sale of assets (1.7) (0.5) 1.3
Taxation effect on sale of assets 0.3 0.1 (0.3)
Impairment of investments and assets 17.3 70.5 -
Taxation effect on impairment of investments
and assets - (20.2) -
Headline earnings 2,097.6 2,581.7 1,101.4
Headline earnings per share - cents 290 357 153
Based on headline earnings as given above divided by 723,776,008 (December
2011 - 723,569,224 and March 2011 - 721,328,149) being the weighted average
number of ordinary shares in issue.
United States Dollars Quarter
March December March
2012 2011 2011
Net earnings 267.8 336.2 157.7
Profit on sale of investments - (12.8) -
Taxation effect on sale of investments - 2.7 -
(Profit)/loss on sale of assets (0.2) (0.1) 0.2
Taxation effect on sale of assets 0.1 - -
Impairment of investments and assets 2.2 9.8 -
Taxation effect on impairment of investments
and assets - (2.8) -
Headline earnings 269.9 333.0 157.9
Headline earnings per share - cents 37 46 22
Based on headline earnings as given above divided by 723,776,008 (December
2011 - 723,569,224 and March 2011 - 721,328,149) 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 March 2012 was the following contract:
- AUD/ZAR - AUD1.6 million in total, with a slightly negative 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 2012 31 Dec 2013 31 Dec 2014
Committed loan facilities
(including US$ bond and
preference shares)
Rand million 1,000.0 500.0 -
US dollar million 530.0 48.0 75.0
Dollar debt translated to rand 4,017.4 363.8 568.5
Total (R`m) 5,017.4 863.8 568.5
Utilisation - Committed loan
facilities (including US$ bond and
preference shares)
Rand million - - -
US dollar million 530.0 47.0 75.0
Dollar debt translated to rand 4,017.4 356.3 568.5
Total (R`m) 4,017.4 356.3 568.5
Long-term loans per balance
sheet (R`m)
Current portion of long-term loans
per balance sheet (R`m)
Total loans per balance sheet (R`m)
1 Jan 2015
to
31 Dec 2020 Total
Committed loan facilities (including US$ bond and
preference shares)
Rand million 2,000.0 3,500.0
US dollar million 2,018.0 2,671.0
Dollar debt translated to rand 15,296.2 20,245.9
Total (R`m) 17,296.2 23,745.9
Utilisation - Committed loan facilities (including
US$ bond and preference shares)
Rand million 1,000.0 1,000.0
US dollar million 1,348.0 2,000.0
Dollar debt translated to rand 10,217.6 15,159.8
Total (R`m) 11,217.6 16,159.8
Long-term loans per balance sheet (R`m) 12,013.5
Current portion of long-term loans per balance sheet (R`m) 4,146.3
Total loans per balance sheet (R`m) 16,159.8
Exchange rate: US$1 = R7.58 being the closing rate at the end of the March
2012 quarter.
Operating and financial results
South African Rand
South Africa Region
Total
Mine
Operations Total KDC
Operating Results
Ore milled/treated
(000 tonnes) March 2012 14,848 3,942 2,515
December 2011 15,026 4,333 2,844
Yield (grams per
tonne) March 2012 1.8 3.1 3.1
December 2011 1.9 3.1 3.1
Gold produced
(kilograms) March 2012 26,468 12,051 7,765
December 2011 28,195 13,500 8,890
Gold sold (kilograms) March 2012 26,718 12,051 7,765
December 2011 28,157 13,500 8,890
Gold price received
(Rand per kilogram) March 2012 419,433 418,654 418,364
December 2011 435,661 438,044 438,009
Total cash cost (Rand
per kilogram) March 2012 217,434 264,069 255,480
December 2011 199,155 229,148 218,526
Notional cash
expenditure (Rand per
kilogram) March 2012 316,582 372,218 322,421
December 2011 306,139 331,541 289,078
Operating costs (Rand
per tonne) March 2012 394 804 784
December 2011 376 695 655
Financial Results
(Rand million)
Revenue March 2012 11,206.4 5,045.2 3,248.6
December 2011 12,266.9 5,913.6 3,893.9
Net operating costs March 2012 (5,773.8) (3,168.4) (1,970.8)
December 2011 (5,358.6) (3,011.8) (1,863.7)
- Operating costs March 2012 (5,857.3) (3,168.4) (1,970.8)
December 2011 (5,651.9) (3,011.8) (1,863.7)
- Gold inventory
change March 2012 83.5 - -
December 2011 293.3 - -
Operating profit March 2012 5,432.6 1,876.8 1,277.8
December 2011 6,908.3 2,901.8 2,030.2
Amortisation of
mining assets March 2012 (1,485.7) (697.5) (404.4)
December 2011 (1,724.4) (736.8) (439.1)
Net operating profit March 2012 3,946.9 1,179.3 873.4
December 2011 5,183.9 2,165.0 1,591.1
Other expenses March 2012 (135.7) (80.2) (47.6)
December 2011 (120.6) (77.0) (42.7)
Profit before
royalties and
taxation March 2012 3,811.2 1,099.1 825.8
December 2011 5,063.3 2,088.0 1,548.4
Royalties, mining and
income taxation March 2012 (1,052.0) 665.6 496.7
December 2011 (1,848.5) (782.0) (606.1)
- Normal taxation March 2012 (758.3) (201.0) (141.5)
December 2011 (904.7) (424.1) (423.0)
- Royalties March 2012 (318.3) (93.8) (64.6)
December 2011 (375.3) (146.6) (123.6)
- Deferred taxation March 2012 24.6 960.4 702.8
December 2011 (568.5) (211.3) (59.5)
Profit before
non-recurring items March 2012 2,759.2 1,764.7 1,322.5
December 2011 3,214.8 1,306.0 942.3
Non-recurring items March 2012 (68.4) (52.6) (30.0)
December 2011 (180.0) (125.7) (111.8)
Net profit March 2012 2,690.8 1,712.1 1,292.5
December 2011 3,034.8 1,180.3 830.5
Net profit excluding
gains and losses on
foreign March 2012 2,741.0 1,749.2 1,313.7
exchange, financial
instruments and
non-recurring December 2011 3,133.4 1,261.1 902.5
items
Capital expenditure March 2012 (2,522.0) (1,317.2) (532.8)
December 2011 (2,979.7) (1,464.0) (706.2)
South Africa Region
Beatrix South Deep
Operating Results
Ore milled/treated (000 tonnes) March 2012 988 439
December 2011 940 549
Yield (grams per tonne) March 2012 2.5 4.2
December 2011 3.0 3.3
Gold produced (kilograms) March 2012 2,462 1,824
December 2011 2,789 1,821
Gold sold (kilograms) March 2012 2,462 1,824
December 2011 2,789 1,821
Gold price received (Rand per
kilogram) March 2012 419,171 419,189
December 2011 437,863 438,495
Total cash cost (Rand per kilogram) March 2012 260,114 305,976
December 2011 220,222 294,673
Notional cash expenditure (Rand per
kilogram) March 2012 308,570 670,121
December 2011 271,172 631,301
Operating costs (Rand per tonne) March 2012 638 1,292
December 2011 645 988
Financial Results (Rand million)
Revenue March 2012 1,032.0 764.6
December 2011 1,221.2 798.5
Net operating costs March 2012 (630.2) (567.4)
December 2011 (605.9) (542.2)
- Operating costs March 2012 (630.2) (567.4)
December 2011 (605.9) (542.2)
- Gold inventory change March 2012 - -
December 2011 - -
Operating profit March 2012 401.8 197.2
December 2011 615.3 256.3
Amortisation of mining assets March 2012 (145.0) (148.1)
December 2011 (150.4) (147.3)
Net operating profit March 2012 256.8 49.1
December 2011 464.9 109.0
Other expenses March 2012 (12.9) (19.7)
December 2011 (13.1) (21.2)
Profit before royalties and taxation March 2012 243.9 29.4
December 2011 451.8 87.8
Royalties, mining and income taxation March 2012 152.1 16.8
December 2011 (133.5) (42.4)
- Normal taxation March 2012 (59.5) -
December 2011 (1.1) -
- Royalties March 2012 (25.4) (3.8)
December 2011 (19.0) (4.0)
- Deferred taxation March 2012 237.0 20.6
December 2011 (113.4) (38.4)
Profit before non-recurring items March 2012 396.0 46.2
December 2011 318.3 45.4
Non-recurring items March 2012 (2.9) (19.7)
December 2011 (4.6) (9.3)
Net profit March 2012 393.1 26.5
December 2011 313.7 36.1
Net profit excluding gains and losses
on foreign March 2012 395.2 40.3
exchange, financial instruments and
non-recurring December 2011 316.7 41.9
items
Capital expenditure March 2012 (129.5) (654.9)
December 2011 (150.4) (607.4)
Operating and financial results
South African Rand
West Africa Region South
America
Region
Peru
Ghana Cerro
Total Tarkwa Damang Corona
Operating Results
Ore milled/treated (000
tonnes) March 2012 7,233 6,013 1,220 1,676
December 2011 7,047 5,855 1,192 1,620
Yield (grams
per tonne) March 2012 1.0 1.0 1.1 1.4
December 2011 1.0 0.9 1.3 1.5
Gold produced
(kilograms) March 2012 7,144 5,765 1,379 2,379
December 2011 6,843 5,300 1,543 2,489
Gold sold
(kilograms) March 2012 7,144 5,765 1,379 2,629
December 2011 6,843 5,300 1,543 2,451
Gold price received
(Rand per
kilogram) March 2012 419,751 419,289 421,682 421,149
December 2011 432,705 431,774 435,904 428,437
Total cash
cost (Rand
per kilogram) March 2012 160,442 148,760 209,282 133,359
December 2011 171,065 160,642 206,870 126,928
Notional
cash expenditure
(Rand per
kilogram) March 2012 256,467 228,760 372,299 186,045
December 2011 278,167 265,396 322,035 186,902
Operating
costs (Rand
per tonne) March 2012 173 158 248 186
December 2011 170 155 243 188
Financial Results
(Rand million)
Revenue March 2012 2,998.7 2,417.2 581.5 1,107.2
December 2011 2,961.0 2,288.4 672.6 1,050.1
Net operating
costs March 2012 (1,103.9) (824.6) (279.3) (341.4)
December 2011 (1,087.3) (792.8) (294.5) (285.2)
- Operating
costs March 2012 (1,253.1) (950.2) (302.9) (310.9)
December 2011 (1,197.9) (908.0) (289.9) (304.2)
- Gold inventory
change March 2012 149.2 125.6 23.6 (30.5)
December 2011 110.6 115.2 (4.6) 19.0
Operating
profit March 2012 1,894.8 1,592.6 302.2 765.8
December 2011 1,873.7 1,495.6 378.1 764.9
Amortisation
of mining
assets March 2012 (296.1) (238.9) (57.2) (100.0)
December 2011 (266.5) (213.3) (53.2) (120.2)
Net operating
profit March 2012 1,598.7 1,353.7 245.0 665.8
December 2011 1,607.2 1,282.3 324.9 644.7
Other
expenses March 2012 (56.9) (40.7) (16.2) 1.9
December 2011 (35.2) (27.2) (8.0) 25.8
Profit before
royalties
and taxation March 2012 1,541.8 1,313.0 228.8 667.7
December 2011 1,572.0 1,255.1 316.9 670.5
Royalties,
mining and
income taxation March 2012 (1,259.4) (1,091.3) (168.1) (268.2)
December 2011 (569.6) (455.2) (114.4) (223.6)
- Normal
taxation March 2012 (359.0) (321.0) (38.0) (198.3)
December 2011 (294.8) (238.7) (56.1) (185.8)
- Royalties March 2012 (150.0) (120.9) (29.1) (22.5)
December 2011 (146.1) (112.9) (33.2) (25.1)
- Deferred
taxation March 2012 (750.4) (649.4) (101.0) (47.4)
December 2011 (128.7) (103.6) (25.1) (12.7)
Profit before
non-recurring
items March 2012 282.4 221.7 60.7 399.5
December 2011 1,002.4 799.9 202.5 446.9
Non-recurring
items March 2012 (9.2) - (9.2) (6.8)
December 2011 (16.6) (2.8) (13.8) (72.5)
Net profit March 2012 273.2 221.7 51.5 392.7
December 2011 985.8 797.1 188.7 374.4
March 2012 291.8 231.2 60.6 386.8
Net profit
excluding gains
and losses on
foreign exchange,
financial
instruments December 2011 1,009.4 806.5 202.9 376.9
and non-
recurring items
Capital
expenditure March 2012 (579.1) (368.6) (210.5) (131.7)
December 2011 (705.6) (498.6) (207.0) (161.0)
Australasia Region #
Australia
Total St Ives Agnew
Operating Results
Ore milled/treated (000
tonnes) March 2012 1,997 1,773 224
December 2011 2,026 1,768 258
Yield (grams per tonne) March 2012 2.5 2.1 5.1
December 2011 2.6 2.1 6.3
Gold produced (kilograms) March 2012 4,894 3,743 1,151
December 2011 5,363 3,746 1,617
Gold sold (kilograms) March 2012 4,894 3,743 1,151
December 2011 5,363 3,746 1,617
Gold price received
(Rand per kilogram) March 2012 419,963 420,732 417,463
December 2011 436,733 436,412 437,477
Total cash cost (Rand
per kilogram) March 2012 230,956 226,743 244,657
December 2011 192,504 201,895 170,748
Notional cash
expenditure (Rand per
kilogram) March 2012 330,793 327,358 341,964
December 2011 333,228 355,419 281,818
Operating costs (Rand
per tonne) March 2012 563 464 1,346
December 2011 562 474 1,166
Financial Results (Rand
million)
Revenue March 2012 2,055.3 1,574.8 480.5
December 2011 2,342.2 1,634.8 707.4
Net operating costs March 2012 (1,160.1) (867.5) (292.6)
December 2011 (974.3) (710.5) (263.8)
- Operating costs March 2012 (1,124.9) (823.3) (301.6)
December 2011 (1,138.0) (837.2) (300.8)
- Gold inventory change March 2012 (35.2) (44.2) 9.0
December 2011 163.7 126.7 37.0
Operating profit March 2012 895.2 707.3 187.9
December 2011 1,367.9 924.3 443.6
Amortisation of mining
assets March 2012 (392.1)
December 2011 (600.9)
Net operating profit March 2012 503.1
December 2011 767.0
Other expenses March 2012 (0.5)
December 2011 (34.2)
Profit before royalties
and taxation March 2012 502.6
December 2011 732.8
Royalties, mining and
income taxation March 2012 (190.0)
December 2011 (273.3)
- Normal taxation March 2012 -
December 2011 -
- Royalties March 2012 (52.0)
December 2011 (57.5)
- Deferred taxation March 2012 (138.0)
December 2011 (215.8)
Profit before
non-recurring items March 2012 312.6
December 2011 459.5
Non-recurring items March 2012 0.2
December 2011 34.8
Net profit March 2012 312.8
December 2011 494.3
March 2012 313.2
Net profit excluding
gains and losses on
foreign exchange,
financial instruments December 2011 486.0
and non-recurring items
Capital expenditure March 2012 (494.0) (402.0) (92.0)
December 2011 (649.1) (494.2) (154.9)
# 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) 14,848 3,942 2,515
March 2012
December 2011 15,026 4,333 2,844
Yield (ounces per tonne) March 2012 0.057 0.098 0.099
December 2011 0.060 0.100 0.100
Gold produced (000 ounces) March 2012 851.0 387.4 249.7
December 2011 906.5 434.0 285.8
Gold sold (000 ounces) March 2012 859.0 387.4 249.7
December 2011 905.3 434.0 285.8
Gold price received
(dollars per ounce) March 2012 1,679 1,676 1,675
December 2011 1,677 1,686 1,686
Total cash cost (dollars
per ounce) March 2012 870 1,057 1,023
December 2011 767 882 841
Notional cash expenditure
(dollars per ounce) March 2012 1,267 1,490 1,291
December 2011 1,178 1,276 1,113
Operating costs (dollars
per tonne) March 2012 51 103 101
December 2011 47 86 81
Financial Results
($ million)
Revenue March 2012 1,442.3 649.3 418.1
December 2011 1,533.5 742.1 490.7
Net operating costs March 2012 (743.1) (407.8) (253.6)
December 2011 (656.1) (366.9) (226.9)
- Operating costs March 2012 (753.8) (407.8) (253.6)
December 2011 (695.3) (366.9) (226.9)
- Gold inventory change March 2012 10.7 - -
December 2011 39.2 - -
Operating profit March 2012 699.2 241.5 164.5
December 2011 877.4 375.2 263.9
Amortisation of mining
assets March 2012 (191.2) (89.8) (52.0)
December 2011 (217.7) (90.9) (54.0)
Net operating profit March 2012 508.0 151.8 112.4
December 2011 659.7 284.3 209.9
Other expenses March 2012 (17.5) (10.3) (6.1)
December 2011 (14.0) (9.5) (5.3)
Profit before royalties
and taxation March 2012 490.5 141.5 106.3
December 2011 645.7 274.8 204.6
Royalties, mining and
income taxation March 2012 (135.4) 85.7 63.9
December 2011 (236.6) (103.4) (80.8)
- Normal taxation March 2012 (97.6) (25.9) (18.2)
December 2011 (114.9) (57.5) (57.4)
- Royalties March 2012 (41.0) (12.1) (8.3)
December 2011 (48.1) (19.5) (16.4)
- Deferred taxation March 2012 3.2 123.6 90.5
December 2011 (73.6) (26.4) (7.0)
Profit before
non-recurring items March 2012 355.1 227.1 170.2
December 2011 409.1 171.4 123.8
Non-recurring items March 2012 (8.8) (6.8) (3.9)
December 2011 (23.2) (16.3) (14.8)
Net profit March 2012 346.3 220.3 166.3
December 2011 385.9 155.1 109.1
March 2012 352.8 225.1 169.1
Net profit excluding
gains and losses on
foreign
exchange, financial
instruments and
non-recurring December 2011 398.1 165.4 118.5
items
Capital expenditure March 2012 (324.6) (169.5) (68.6)
December 2011 (376.3) (183.6) (88.9)
South Africa Region
Beatrix South Deep
Operating Results
Ore milled/treated (000 tonnes) 988 439
March 2012
December 2011 940 549
Yield (ounces per tonne) March 2012 0.080 0.134
December 2011 0.095 0.107
Gold produced (000 ounces) March 2012 79.2 58.6
December 2011 89.7 58.5
Gold sold (000 ounces) March 2012 79.2 58.6
December 2011 89.7 58.5
Gold price received (dollars per
ounce) March 2012 1,678 1,678
December 2011 1,686 1,688
Total cash cost (dollars per ounce) March 2012 1,041 1,225
December 2011 848 1,134
Notional cash expenditure (dollars
per ounce) March 2012 1,235 2,683
December 2011 1,044 2,430
Operating costs (dollars per tonne) March 2012 82 166
December 2011 80 122
Financial Results ($ million)
Revenue March 2012 132.8 98.4
December 2011 153.5 97.8
Net operating costs March 2012 (81.1) (73.0)
December 2011 (73.8) (66.2)
- Operating costs March 2012 (81.1) (73.0)
December 2011 (73.8) (66.2)
- Gold inventory change March 2012 - -
December 2011 - -
Operating profit March 2012 51.7 25.4
December 2011 79.7 31.7
Amortisation of mining assets March 2012 (18.7) (19.1)
December 2011 (18.8) (18.1)
Net operating profit March 2012 33.1 6.3
December 2011 60.9 13.6
Other expenses March 2012 (1.7) (2.5)
December 2011 (1.6) (2.6)
Profit before royalties and taxation March 2012 31.4 3.8
December 2011 59.3 10.9
Royalties, mining and income taxation March 2012 19.6 2.2
December 2011 (17.3) (5.4)
- Normal taxation March 2012 (7.7) -
December 2011 (0.1) -
- Royalties March 2012 (3.3) (0.5)
December 2011 (2.6) (0.5)
- Deferred taxation March 2012 30.5 2.7
December 2011 (14.6) (4.8)
Profit before non-recurring items March 2012 51.0 5.9
December 2011 42.0 5.6
Non-recurring items March 2012 (0.4) (2.5)
December 2011 (0.4) (1.1)
Net profit March 2012 50.6 3.4
December 2011 41.6 4.5
March 2012 50.9 5.2
Net profit excluding gains and losses
on foreign
exchange, financial instruments and
non-recurring December 2011 41.8 5.1
items
Capital expenditure March 2012 (16.7) (84.3)
December 2011 (18.2) (76.5)
Average exchange rates were US$1 = R7.77 and US$1 = R8.08 for the March 2012
and December 2011 quarters respectively.
The Australian dollar exchange rates were A$1 = R8.19 and A$1 = R8.16 for the
March 2012 and the December 2011 quarters respectively.
Operating and financial results
United States Dollars
West Africa Region South
America
Region
Ghana Peru
Cerro
Total Tarkwa Damang Corona
Operating Results
Ore milled/treated March 2012 7,233 6,013 1,220 1,676
(000 tonnes) December 2011 7,047 5,855 1,192 1,620
Yield (ounces per
tonne) March 2012 0.032 0.031 0.036 0.046
December 2011 0.031 0.029 0.042 0.049
Gold produced
(000 ounces) March 2012 229.7 185.3 44.3 76.5
December 2011 220.0 170.4 49.6 80.0
Gold sold (000
ounces) March 2012 229.7 185.3 44.3 84.5
December 2011 220.0 170.4 49.6 78.8
Gold price
received March 2012 1,680 1,678 1,688 1,686
(dollars per
ounce) December 2011 1,666 1,662 1,678 1,649
Total cash cost March 2012 642 595 838 534
(dollars per
ounce) December 2011 659 618 796 489
Notional cash
expenditure March 2012 1,027 916 1,490 745
(dollars per
ounce) December 2011 1,071 1,022 1,240 719
Operating costs March 2012 22 20 32 24
(dollars per
tonne) December 2011 21 19 30 23
Financial Results
($ million)
Revenue March 2012 385.9 311.1 74.8 142.5
December 2011 367.6 284.4 83.2 128.7
Net operating
costs March 2012 (142.1) (106.1) (35.9) (43.9)
December 2011 (136.1) (99.3) (36.7) (34.8)
- Operating costs March 2012 (161.3) (122.3) (39.0) (40.0)
December 2011 (149.3) (113.3) (36.0) (37.5)
- Gold inventory
change March 2012 19.2 16.2 3.0 (3.9)
December 2011 13.2 14.0 (0.7) 2.8
Operating profit March 2012 243.9 205.0 38.9 98.6
December 2011 231.5 185.1 46.5 94.0
Amortisation of
mining assets March 2012 (38.1) (30.7) (7.4) (12.9)
December 2011 (33.1) (26.5) (6.6) (15.0)
Net operating
profit March 2012 205.8 174.2 31.5 85.7
December 2011 198.5 158.6 39.9 79.0
Other expenses March 2012 (7.3) (5.2) (2.1) 0.2
December 2011 (4.1) (3.2) (0.9) 4.1
Profit before
royalties and March 2012 198.4 169.0 29.4 85.9
taxation December 2011 194.4 155.4 39.0 83.2
Royalties, mining
and income
March 2012 (162.1) (140.5) (21.6) (34.5)
taxation December 2011 (70.7) (56.6) (14.2) (27.5)
- Normal taxation March 2012 (46.2) (41.3) (4.9) (25.5)
December 2011 (35.2) (28.3) (6.9) (22.2)
- Royalties March 2012 (19.3) (15.6) (3.7) (2.9)
December 2011 (18.4) (14.2) (4.2) (3.0)
- Deferred
taxation March 2012 (96.6) (83.6) (13.0) (6.1)
December 2011 (17.2) (14.1) (3.1) (2.2)
Profit before March 2012 36.3 28.5 7.8 51.4
non-recurring
items December 2011 123.7 98.8 24.8 55.7
Non-recurring
items March 2012 (1.2) - (1.2) (0.9)
December 2011 (1.9) (0.2) (1.7) (10.0)
Net profit March 2012 35.2 28.5 6.6 50.5
December 2011 121.8 98.6 23.2 45.7
Net profit
excluding gains and
March 2012 37.6 29.8 7.8 49.8
losses on foreign
exchange, December 2011 124.5 99.7 24.8 45.8
financial
instruments and
non-recurring items
Capital
expenditure March 2012 (74.5) (47.4) (27.1) (16.9)
December 2011 (89.2) (63.0) (26.2) (20.4)
Australasia Region
Australia #
Total St Ives Agnew
Operating Results
Ore milled/treated March 2012 1,997 1,773 224
(000 tonnes) December 2011 2,026 1,768 258
Yield (ounces per tonne) March 2012 0.079 0.068 0.165
December 2011 0.085 0.068 0.202
Gold produced (000 ounces) March 2012 157.3 120.3 37.0
December 2011 172.4 120.4 52.0
Gold sold (000 ounces) March 2012 157.3 120.3 37.0
December 2011 172.4 120.4 52.0
Gold price received March 2012 1,681 1,684 1,671
(dollars per ounce) December 2011 1,681 1,680 1,684
Total cash cost March 2012 925 908 979
(dollars per ounce) December 2011 741 777 657
Notional cash expenditure March 2012 1,324 1,310 1,369
(dollars per ounce) December 2011 1,283 1,368 1,085
Operating costs March 2012 72 60 173
(dollars per tonne) December 2011 70 59 144
Financial Results ($ million)
Revenue March 2012 264.5 202.7 61.8
December 2011 295.2 205.9 89.3
Net operating costs March 2012 (149.3) (111.6) (37.7)
December 2011 (118.4) (85.6) (32.8)
- Operating costs March 2012 (144.8) (106.0) (38.8)
December 2011 (141.6) (103.8) (37.8)
- Gold inventory change March 2012 (4.5) (5.7) 1.2
December 2011 23.2 18.2 5.0
Operating profit March 2012 115.2 91.0 24.2
December 2011 176.9 120.3 56.5
Amortisation of mining assets March 2012 (50.5)
December 2011 (78.8)
Net operating profit March 2012 64.7
December 2011 98.1
Other expenses March 2012 (0.1)
December 2011 (4.5)
Profit before royalties and March 2012 64.7
taxation December 2011 93.6
Royalties, mining and income
March 2012 (24.5)
taxation December 2011 (35.0)
- Normal taxation March 2012 -
December 2011 -
- Royalties March 2012 (6.7)
December 2011 (7.2)
- Deferred taxation March 2012 (17.8)
December 2011 (27.8)
Profit before March 2012 40.2
non-recurring items December 2011 58.6
Non-recurring items March 2012 -
December 2011 4.9
Net profit March 2012 40.3
December 2011 63.5
Net profit excluding gains and
March 2012 40.3
losses on foreign exchange, December 2011 62.3
financial instruments and
non-recurring items
Capital expenditure March 2012 (63.6) (51.7) (11.8)
December 2011 (83.2) (63.8) (19.4)
Australian Dollars
Australasia Region #
Total St Ives Agnew
Operating Results
Ore milled/treated March 2012 1,997 1,773 224
(000 tonnes) December 2011 2,026 1,768 258
Yield (ounces per tonne) March 2012 0.079 0.068 0.165
December 2011 0.085 0.068 0.202
Gold produced (000 ounces) March 2012 157.3 120.3 37.0
December 2011 172.4 120.4 52.0
Gold sold (000 ounces) March 2012 157.3 120.3 37.0
December 2011 172.4 120.4 52.0
Gold price received March 2012 1,595 1,598 1,585
(dollars per ounce) December 2011 1,665 1,663 1,668
Total cash cost March 2012 877 861 929
(dollars per ounce) December 2011 734 770 651
Notional cash expenditure March 2012 1,256 1,243 1,299
(dollars per ounce) December 2011 1,270 1,355 1,074
Operating costs March 2012 69 57 164
(dollars per tonne) December 2011 69 58 143
Financial Results ($ million)
Revenue March 2012 251.0 192.3 58.7
December 2011 291.1 203.1 88.0
Net operating costs March 2012 (141.6) (105.9) (35.7)
December 2011 (117.4) (85.2) (32.3)
- Operating costs March 2012 (137.4) (100.5) (36.8)
December 2011 (139.9) (102.7) (37.2)
- Gold inventory change March 2012 (4.3) (5.4) 1.1
December 2011 22.5 17.5 5.0
Operating profit March 2012 109.3 86.4 22.9
December 2011 173.7 117.9 55.8
Amortisation of mining assets March 2012 (47.9)
December 2011 (77.1)
Net operating profit March 2012 61.4
December 2011 96.6
Other expenses March 2012 (0.1)
December 2011 (4.4)
Profit before royalties and March 2012 61.4
taxation December 2011 92.2
Royalties, mining and income
March 2012 (23.2)
taxation December 2011 (34.3)
- Normal taxation March 2012 -
December 2011 -
- Royalties March 2012 (6.3)
December 2011 (7.1)
- Deferred taxation March 2012 (16.8)
December 2011 (27.2)
Profit before March 2012 38.2
non-recurring items December 2011 57.8
Non-recurring items March 2012 -
December 2011 4.8
Net profit March 2012 38.2
December 2011 62.7
Net profit excluding gains and
March 2012 38.2
losses on foreign exchange, December 2011 61.2
financial instruments and
non-recurring items
Capital expenditure March 2012 (60.3) (49.1) (11.2)
December 2011 (81.7) (62.7) (19.1)
# As a significant portion of the acquisition price was allocated to tenements
of St Ives and Agnew on endowment ounces and also as these two Australian
operations are entitled to transfer and then off-set tax losses from one
company to another, it is not meaningful to split the income statement below
operating profit.
Figures may not add as they are rounded independently.
Total cash cost
Gold Industry Standards Basis
Figures are in South African rand millions unless otherwise stated
South Africa Region
Total
Mine
Operations Total KDC
Operating costs(1) March 2012 (5,857.3) (3,168.4) (1,970.8)
Dec 2011 (5,651.9) (3,011.8) (1,863.7)
Gold-in-process and March 2012 83.9 - -
inventory change* Dec 2011 222.6 - -
Less: Rehabilitation
costs March 2012 (33.3) (14.4) (8.8)
Dec 2011 (28.7) (17.2) (12.3)
General and admin March 2012 (249.0) (65.5) (42.8)
Dec 2011 (168.3) (47.7) (32.3)
March 2012 (318.3) (93.8) (64.6)
Plus: Royalties Dec 2011 (375.3) (146.6) (123.6)
TOTAL CASH COST (2) March 2012 (5,809.4) (3,182.3) (1,983.8)
Dec 2011 (5,607.6) (3,093.5) (1,942.7)
Plus: Amortisation* March 2012 (1,486.1) (697.5) (404.4)
Dec 2011 (1,653.7) (736.8) (439.1)
Rehabilitation March 2012 (33.3) (14.4) (8.8)
Dec 2011 (28.7) (17.2) (12.3)
TOTAL PRODUCTION March 2012 (7,328.8) (3,894.2) (2,397.0)
COST (3) Dec 2011 (7,290.0) (3,847.5) (2,394.1)
Gold sold March 2012 859.0 387.4 249.7
- thousand ounces Dec 2011 905.3 434.0 285.8
TOTAL CASH COST March 2012 870 1,057 1,023
- US$/oz Dec 2011 767 882 841
TOTAL CASH COST March 2012 217,434 264,069 255,480
- R/kg Dec 2011 199,155 229,148 218,526
TOTAL PRODUCTION March 2012 1,098 1,294 1,236
COST - US$/oz Dec 2011 997 1,097 1,037
TOTAL PRODUCTION March 2012 274,302 323,143 308,693
COST - R/kg Dec 2011 258,905 285,000 269,303
South Africa Region
South
Beatrix Deep Total
Operating costs(1) March 2012 (630.2) (567.4) (1,253.1)
Dec 2011 (605.9) (542.2) (1,197.9)
Gold-in-process and March 2012 - - 132.9
inventory change* Dec 2011 - - 87.5
Less: Rehabilitation costs March 2012 (3.6) (2.0) (9.7)
Dec 2011 (3.6) (1.3) (5.4)
General and admin March 2012 (11.6) (11.1) (114.3)
Dec 2011 (7.1) (8.3) (80.5)
March 2012 (25.4) (3.8) (150.0)
Plus: Royalties Dec 2011 (19.0) (4.0) (146.1)
TOTAL CASH COST (2) March 2012 (640.4) (558.1) (1,146.2)
Dec 2011 (614.2) (536.6) (1,170.6)
Plus: Amortisation* March 2012 (145.0) (148.1) (279.8)
Dec 2011 (150.4) (147.3) (243.4)
Rehabilitation March 2012 (3.6) (2.0) (9.7)
Dec 2011 (3.6) (1.3) (5.4)
TOTAL PRODUCTION March 2012 (789.0) (708.2) (1,435.7)
COST (3) Dec 2011 (768.2) (685.2) (1,419.4)
Gold sold March 2012 79.2 58.6 229.7
- thousand ounces Dec 2011 89.7 58.5 220.0
TOTAL CASH COST March 2012 1,041 1,225 642
- US$/oz Dec 2011 848 1,134 659
TOTAL CASH COST March 2012 260,114 305,976 160,442
- R/kg Dec 2011 220,222 294,673 171,065
TOTAL PRODUCTION March 2012 1,283 1,554 804
COST - US$/oz Dec 2011 1,060 1,448 798
TOTAL PRODUCTION March 2012 320,471 388,268 200,966
COST - R/kg Dec 2011 275,439 376,277 207,424
West Africa Region South
America
Region
Ghana Peru
Cerro
Tarkwa Damang Corona
Operating costs(1) March 2012 (950.2) (302.9) (310.9)
Dec 2011 (908.0) (289.9) (304.2)
Gold-in-process and March 2012 116.6 16.3 (22.2)
inventory change* Dec 2011 94.0 (6.5) 14.0
Less: Rehabilitation costs March 2012 (8.1) (1.6) (2.0)
Dec 2011 (4.8) (0.6) (1.0)
General and admin March 2012 (88.8) (25.5) (3.0)
Dec 2011 (70.7) (9.8) (3.2)
March 2012 (120.9) (29.1) (22.5)
Plus: Royalties Dec 2011 (112.9) (33.2) (25.1)
TOTAL CASH COST (2) March 2012 (857.6) (288.6) (350.6)
Dec 2011 (851.4) (319.2) (311.1)
Plus: Amortisation* March 2012 (229.9) (49.9) (108.3)
Dec 2011 (192.1) (51.3) (115.2)
Rehabilitation March 2012 (8.1) (1.6) (2.0)
Dec 2011 (4.8) (0.6) (1.0)
TOTAL PRODUCTION March 2012 (1,095.6) (340.1) (460.9)
COST (3) Dec 2011 (1,048.3) (371.1) (427.3)
Gold sold March 2012 185.3 44.3 84.5
- thousand ounces Dec 2011 170.4 49.6 78.8
TOTAL CASH COST March 2012 595 838 534
- US$/oz Dec 2011 618 796 489
TOTAL CASH COST March 2012 148,760 209,282 133,359
- R/kg Dec 2011 160,642 206,870 126,928
TOTAL PRODUCTION March 2012 761 987 702
COST - US$/oz Dec 2011 761 926 671
TOTAL PRODUCTION March 2012 190,043 246,628 175,314
COST - R/kg Dec 2011 197,792 240,506 174,337
Australasia Region
Australia
Total St Ives Agnew
Operating costs(1) March 2012 (1,124.9) (823.3) (301.6)
Dec 2011 (1,138.0) (837.2) (300.8)
Gold-in-process and March 2012 (26.8) (32.4) 5.6
inventory change* Dec 2011 121.1 92.9 28.2
Less: Rehabilitation costs March 2012 (7.2) (5.8) (1.4)
Dec 2011 (5.1) (4.2) (0.9)
General and admin March 2012 (66.2) (42.2) (24.0)
Dec 2011 (36.9) (24.7) (12.2)
March 2012 (52.0) (41.0) (11.0)
Plus: Royalties Dec 2011 (57.5) (40.9) (16.6)
TOTAL CASH COST (2) March 2012 (1,130.3) (848.7) (281.6)
Dec 2011 (1,032.4) (756.3) (276.1)
Plus: Amortisation* March 2012 (400.5) - -
Dec 2011 (558.3) - -
Rehabilitation March 2012 (7.2) - -
Dec 2011 (5.1) - -
TOTAL PRODUCTION March 2012 (1,538.0) - -
COST (3) Dec 2011 (1,595.8) - -
Gold sold March 2012 157.3 120.3 37.0
- thousand ounces Dec 2011 172.4 120.4 52.0
TOTAL CASH COST March 2012 925 908 979
- US$/oz Dec 2011 741 777 657
TOTAL CASH COST March 2012 230,956 226,743 244,657
- R/kg Dec 2011 192,504 201,895 170,748
TOTAL PRODUCTION March 2012 1,258 - -
COST - US$/oz Dec 2011 1,145 - -
TOTAL PRODUCTION March 2012 314,262 - -
COST - R/kg Dec 2011 297,557 - -
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 = R7.77 and US$1 = R8.08 for the March 2012
and December 2011 quarters respectively.
Capital expenditure
Figures are in South African rand millions unless otherwise stated
South Africa Region
Total
Group Total KDC
Sustaining
capital March 2012 (1,222.8) (136.7) (106.6)
Dec 2011 (1,622.2) (316.7) (265.2)
Ore reserve March 2012 (525.6) (525.6) (426.2)
development Dec 2011 (539.9) (539.9) (441.0)
Project capital # March 2012 (737.5) (654.9) -
Dec 2011 (810.4) (607.4) -
Brownfields March 2012 (122.2) - -
exploration Dec 2011 (208.7) - -
Total capital March 2012 (2,608.1) (1,317.2) (532.8)
expenditure Dec 2011 (3,181.2) (1,464.0) (706.2)
South Africa Region
South
Beatrix Deep Total
Sustaining
capital March 2012 (30.1) - (554.2)
Dec 2011 (51.5) - (610.6)
Ore reserve March 2012 (99.4) - -
development Dec 2011 (98.9) - -
Project capital # March 2012 - (654.9) -
Dec 2011 - (607.4) -
Brownfields March 2012 - - (24.9)
exploration Dec 2011 - - (95.0)
Total capital March 2012 (129.5) (654.9) (579.1)
expenditure Dec 2011 (150.4) (607.4) (705.6)
West Africa Region South
America
Region
Ghana Peru
Cerro
Tarkwa Damang Corona
Sustaining
capital March 2012 (368.6) (185.6) (131.7)
Dec 2011 (498.6) (112.0) (149.4)
Ore reserve March 2012 - - -
development Dec 2011 - - -
Project capital # March 2012 - - -
Dec 2011 - - (11.6)
Brownfields March 2012 - (24.9) -
exploration Dec 2011 - (95.0) -
Total capital March 2012 (368.6) (210.5) (131.7)
expenditure Dec 2011 (498.6) (207.0) (161.0)
Australasia Region
Australia
Total St Ives
Sustaining
capital March 2012 (396.7) (333.9)
Dec 2011 (535.4) (413.0)
Ore reserve March 2012 - -
development Dec 2011 - -
Project capital # March 2012 - -
Dec 2011 - -
Brownfields March 2012 (97.3) (68.1)
exploration Dec 2011 (113.7) (81.2)
Total capital March 2012 (494.0) (402.0)
expenditure Dec 2011 (649.1) (494.2)
Corporate
Agnew
Sustaining
capital March 2012 (62.8) (3.5)
Dec 2011 (122.4) (10.1)
Ore reserve March 2012 - -
development Dec 2011 - -
Project capital # March 2012 - (82.6)
Dec 2011 - (191.4)
Brownfields March 2012 (29.2) -
exploration Dec 2011 (32.5) -
Total capital March 2012 (92.0) (86.1)
expenditure Dec 2011 (154.9) (201.5)
# Project capital expenditure under Corporate in the March quarter includes
R50 million (US$6 million) at the Arctic Platinum project (APP), R44 million
(US$6 million) at Chucapaca being 51 per cent share in this project, together
with general corporate capital expenditure and a reversal of an over provision
at the Greater Damang project. The table above includes only Gold Fields` 51
per cent share of capital expenditure in Chucapaca, resulting in total capital
expenditure of R2,608 million (US$336 million) compared with R2,650 million
(US$341 million) as reported in the Statement of Cash flows.
Notional cash expenditure##
Figures are in South African rand millions unless otherwise stated
South Africa Region
Total
Group Total KDC
Operating costs March 2012 (5,857.3) (3,168.4) (1,970.8)
Dec 2011 (5,651.9) (3,011.8) (1,863.7)
Capital March 2012 (2,608.1) (1,317.2) (532.8)
expenditure Dec 2011 (3,181.2) (1,464.0) (706.2)
Notional cash March 2012 319,835 372,218 322,421
expenditure Dec 2011 313,286 331,541 289,078
- R/kg
Notional cash March 2012 1,280 1,490 1,291
expenditure Dec 2011 1,206 1,276 1,113
- US$/oz
South Africa Region
South
Beatrix Deep Total
Operating costs March 2012 (630.2) (567.4) (1,253.1)
Dec 2011 (605.9) (542.2) (1,197.9)
Capital March 2012 (129.5) (654.9) (579.1)
expenditure Dec 2011 (150.4) (607.4) (705.6)
Notional cash March 2012 308,570 670,121 256,467
expenditure Dec 2011 271,172 631,301 278,167
- R/kg
Notional cash March 2012 1,235 2,683 1,027
expenditure Dec 2011 1,044 2,430 1,071
- US$/oz
West Africa Region South
America
Region
Ghana Peru
Cerro
Tarkwa Damang Corona
Operating costs March 2012 (950.2) (302.9) (310.9)
Dec 2011 (908.0) (289.9) (304.2)
Capital March 2012 (368.6) (210.5) (131.7)
expenditure Dec 2011 (498.6) (207.0) (161.0)
Notional cash March 2012 228,760 372,299 186,045
expenditure Dec 2011 265,396 322,035 186,902
- R/kg
Notional cash March 2012 916 1,490 745
expenditure Dec 2011 1,022 1,240 719
- US$/oz
Australasia Region
Australia
Total St Ives
Operating costs March 2012 (1,124.9) (823.3)
Dec 2011 (1,138.0) (837.2)
Capital March 2012 (494.0) (402.0)
expenditure Dec 2011 (649.1) (494.2)
Notional cash March 2012 330,793 327,358
expenditure Dec 2011 333,228 355,419
- R/kg
Notional cash March 2012 1,324 1,310
expenditure Dec 2011 1,283 1,368
- US$/oz
Agnew Corporate
Operating costs March 2012 (301.6) -
Dec 2011 (300.8) -
Capital March 2012 (92.0) (86.1)
expenditure Dec 2011 (154.9) (201.5)
Notional cash March 2012 341,964 -
expenditure Dec 2011 281,818 -
- R/kg
Notional cash March 2012 1,369 -
expenditure Dec 2011 1,085 -
- US$/oz
## 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
Operating Results
South Africa Region
Total
Mine
Operations Total KDC Beatrix
Ore
milled/treated
(000 tonnes)
March 2012 2,479 1,968 990 539
- underground
December 2011 2,916 2,403 1,232 647
March 2012 12,369 1,974 1,525 449
- surface
December 2011 12,110 1,930 1,612 293
March 2012 14,848 3,942 2,515 988
- total
December 2011 15,026 4,333 2,844 940
Yield (grams per
tonne)
March 2012 5.5 5.4 6.5 4.4
- underground
December 2011 5.3 5.1 6.3 4.2
March 2012 1.0 0.7 0.8 0.2
- surface
December 2011 1.0 0.6 0.7 0.2
March 2012 1.8 3.1 3.1 2.5
- combined
December 2011 1.9 3.1 3.1 3.0
Gold produced
(kilograms)
March 2012 13,682 10,646 6,472 2,350
- underground
December 2011 15,551 12,258 7,725 2,716
March 2012 12,786 1,405 1,293 112
- surface
December 2011 12,644 1,242 1,165 73
March 2012 26,468 12,051 7,765 2,462
- total
December 2011 28,195 13,500 8,890 2,789
Operating costs
(Rand per tonne)
March 2012 1,447 1,500 1,796 1,124
- underground
December 2011 1,179 1,171 1,374 902
March 2012 184 110 126 55
- surface
December 2011 183 102 106 77
March 2012 394 804 784 638
- total
December 2011 376 695 655 645
Operating Results
West Africa Region
Ghana
South
Deep #
Total Tarkwa Damang
Ore milled/treated
(000 tonnes)
March 2012 439 - - -
- underground
December 2011 524 - - -
March 2012 - 7,233 6,013 1,220
- surface
December 2011 25 7,047 5,855 1,192
March 2012 439 7,233 6,013 1,220
- total
December 2011 549 7,047 5,855 1,192
Yield (grams per
tonne)
March 2012 5.3 - - -
- underground
December 2011 4.5 - - -
March 2012 - 1.0 1.0 1.1
- surface
December 2011 0.2 1.0 0.9 1.3
March 2012 4.2 1.0 1.0 1.1
- combined
December 2011 3.3 1.0 0.9 1.3
Gold produced
(kilograms)
March 2012 1,824 - - -
- underground
December 2011 1,817 - - -
March 2012 - 7,144 5,765 1,379
- surface
December 2011 4 6,843 5,300 1,543
March 2012 1,824 7,144 5,765 1,379
- total
December 2011 1,821 6,843 5,300 1,543
Operating costs
(Rand per tonne)
March 2012 1,292 - - -
- underground
December 2011 1,029 - - -
March 2012 - 173 158 248
- surface
December 2011 120 170 155 243
March 2012 1,292 173 158 248
- total
December 2011 988 170 155 243
Operating Results
South Australasia Region
America
Region
Peru Australia
Cerro
Corona Total St Ives Agnew
Ore milled/treated
(000 tonnes)
March 2012 - 511 398 113
- underground
December 2011 - 513 370 143
March 2012 1,676 1,486 1,375 111
- surface
December 2011 1,620 1,513 1,398 115
March 2012 1,676 1,997 1,773 224
- total
December 2011 1,620 2,026 1,768 258
Yield (grams per
tonne)
March 2012 - 5.9 5.1 8.8
- underground
December 2011 - 6.4 5.1 9.7
March 2012 1.4 1.3 1.2 1.4
- surface
December 2011 1.5 1.4 1.3 2.0
March 2012 1.4 2.5 2.1 5.1
- combined
December 2011 1.5 2.6 2.1 6.3
Gold produced
(kilograms)
March 2012 - 3,036 2,042 994
- underground
December 2011 - 3,293 1,901 1,392
March 2012 2,379 1,858 1,701 157
- surface
December 2011 2,489 2,070 1,845 225
March 2012 2,379 4,894 3,743 1,151
- total
December 2011 2,489 5,363 3,746 1,617
Operating costs
(Rand per tonne)
March 2012 - 1,242 912 2,405
- underground
December 2011 - 1,214 974 1,835
March 2012 186 330 335 268
- surface
December 2011 188 341 341 334
March 2012 186 563 464 1,346
- total
December 2011 188 562 474 1,166
# March quarter includes 94,000 tonnes (December quarter includes 124,000
tonnes) of waste processed from underground. In order to show the yield based
on ore mined, the calculation of the yield at South Deep only, excludes the
underground waste.
Development results
Development values represent the actual results of sampling and no allowance
has been made for any adjustments which may be necessary when estimating ore
reserves. All figures below exclude shaft sinking metres, which are reported
separately where appropriate.
KDC March 2012 quarter
Carbon
Reef Leader Kloof Main VCR
Advanced (m) 4,457 161 1,133 4,900
Advanced on reef (m) 771 - 410 709
Sampled (m) 705 - 369 567
Channel width (cm) 66 - 67 100
Average value - (g/t) 28.3 - 11.9 25.9
- (cm.g/t) 1,856 - 799 2,581
KDC December 2011 quarter
Carbon
Reef Leader Kloof Main VCR
Advanced (m) 4,829 95 773 5,556
Advanced on reef (m) 753 72 255 706
Sampled (m) 684 57 231 546
Channel width (cm) 77 149 57 187
Average value - (g/t) 25.6 8.1 15.2 13.4
- (cm.g/t) 1,983 1,202 868 2,502
Beatrix March 2012 quarter
Reef Beatrix Kalkoenkrans
Advanced (m) 3,691 1,460
Advanced on reef (m) 941 380
Sampled (m) 981 306
Channel width (cm) 120 102
Average value - (g/t) 8.4 22.8
- (cm.g/t) 1,005 2,333
Beatrix December 2011 quarter
Reef Beatrix Kalkoenkrans
Advanced (m) 4,374 1,749
Advanced on reef (m) 815 537
Sampled (m) 846 390
Channel width (cm) 165 92
Average value - (g/t) 7.1 19.1
- (cm.g/t) 1,176 1,749
South Deep March 2012 quarter December 2011 quarter
Reef Elsburgs 1,2 Elsburgs 1,2
Main Advanced (m) 2,440 3,175
- Main above 95 level (m) 1,516 1,838
- Main below 95 level (m) 924 1,337
Advanced on reef (m) 1,276 1,552
Square metres de-stressed (m2) 7,811 7,373
- Reserve value de-stressed (g/t) 6.3 7.1
Shaft sinking (m) - 47
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
PO Box 358516
Pittsburgh, PA15252 8516
US toll free telephone: +1 888 269 2377
Tel: +1 201 680 6825
e-mail: shrrelations@bnymellon.com
Gold Fields Limited
Incorporated in the Republic of South Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN - ZAE 000018123
Investor Enquiries
Willie Jacobsz
Tel: +508 839 1188
Mobile: +857 241 7127
e-mail: willie.jacobsz@gfexpl.com
Media Enquiries
Sven Lunsche
Tel: +27 11 562 9763
Mobile: +27 83 260 9279
e-mail: sven.lunsche@goldfields.co.za
Transfer Secretaries
South Africa
Computershare Investor Services (Proprietary) Limited
Ground Floor
70 Marshall Street
Johannesburg
2001
PO Box 61051
Marshalltown
2107
Tel: +27 11 370 5000
Fax: +27 11 688 5248
United Kingdom
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
England
Tel: 0871 664 0300 (calls cost 10p a minute plus
network extras, lines are open 8.30am - 5pm
Mon Fri) or (from overseas)
+44 20 8639 3399
Fax: +44 20 8658 3430
e-mail: ssd@capitaregistrars.com
Website
http://www.goldfields.co.za
Listings
JSE / NYSE / NASDAQ Dubai: GFI
NYX: GFLB
SWX: GOLI
Forward looking statements
Certain statements in this document constitute "forward looking statements"
within the meaning of Section 27A of the US Securities Act of 1933 and Section
21E of the US Securities Exchange Act of 1934.
Such forward looking statements involve known and unknown risks, uncertainties
and other important factors that could cause the actual results, performance
or achievements of the company to be materially different from the future
results, performance or achievements expressed or implied by such forward
looking statements. Such risks, uncertainties and other important factors
include among others: economic, business and political conditions in South
Africa, Ghana, Australia, Peru and elsewhere; the ability to achieve
anticipated efficiencies and other cost savings in connection with past and
future acquisitions, exploration and development activities; decreases in the
market price of gold and/or copper; hazards associated with underground and
surface gold mining; labour disruptions; availability, terms and deployment of
capital or credit; changes in government regulations, particularly
environmental regulations and new legislation affecting mining and mineral
rights; changes in exchange rates, currency devaluations, inflation and other
macro economic factors; industrial action; temporary stoppages of mines for
safety and unplanned maintenance reasons; and the impact of the AIDS crisis in
South Africa. These forward looking statements speak only as of the date of
this document.
The company undertakes no obligation to update publicly or release any
revisions to these forward looking statements to reflect events or
circumstances after the date of this document or to reflect the occurrence of
unanticipated events.
Directors
M A Ramphele (Chair)
K Ansah #
A R Hill
M S Moloko
R L Pennant Rea *
N J Holland * (Chief Executive Officer)
C A Carolus
D L Lazaro
D N Murray
G M Wilson
P A Schmidt (Chief Financial Officer)
R Danino **
R P Menell
D M J Ncube
* British
# Ghanaian
Canadian
Filipino
** Peruvian
Independent Director
+ Non independent Director
www.goldfields.co.za
Sponsor:
J.P. Morgan Equities Limited
Date: 17/05/2012 08:00:07 Supplied by www.sharenet.co.za
Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
