GFI
GOGOF
GFI - Gold Fields Limited - Reviewed Preliminary Condensed Results
Gold Fields Limited
Incorporated in the Republic of South Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN - ZAE000018123
Quarter and Period ended 31 December 2010
News Release - Reviewed Preliminary Condensed Results
A Steady Quarter With Improved Margins
JOHANNESBURG. 18 February 2011, Gold Fields Limited (NYSE & JSE: GFI) today
announced net earnings excluding gains and losses on foreign exchange, non-
recurring items and share of gain or loss of associates after royalties and
taxation for the December 2010 quarter of R1,475 million compared with
earnings of R1,016 million and R1,022 million in the September 2010 and
December 2009 quarters respectively. In US dollar terms net earnings
excluding gains and losses on foreign exchange, non-recurring items and share
of gain or loss of associates after royalties and taxation for the December
2010 quarter were US$211 million, compared with earnings of US$138 million
and US$135 million for the September 2010 and December 2009 quarters
respectively. A net loss of R777 million (US$106 million) was incurred due to
the cost of a number of empowerment transactions completed in the quarter.
December 2010 quarter salient features:
Net earnings per share excluding gains and losses on foreign exchange, non-
recurring items and share of gain or loss of associates after royalties and
taxation increased by 43 per cent from 144 cents per share to 206 cents per
share;
Group attributable gold production similar to last quarter at 898,000
ounces;
Lowest coupon dollar bond ever issued by South African corporate;
Total cash cost down from R164,898 per kilogram (US$697 per ounce) to
R161,894 per kilogram (US$728 per ounce);
NCE margin up 2 per cent to 20 per cent;
2014 equity empowerment requirements completed and fully accounted for; and
Growth projects are progressing as planned and the outlook remains positive.
Growth pipeline gathering momentum.
As a result of the change in year-end from June to December, a final dividend
for the six months ended 31 December 2010 of 70 SA cents per share is payable
on 14 March 2011.
Statement by Nick Holland, Chief Executive Officer of Gold Fields:
" Gold production of 898,000oz in the December 2010 quarter was in line with
annual guidance provided in August 2010. All of our regions again contained
and reduced costs. In the South Africa region alone more than R100 million of
cost savings were delivered. In the West Africa, South America and
Australasia regions costs in the home currencies were in line with the
previous quarter.
Lower costs also enabled Gold Fields to generate almost R1 billion (US$136
million) in cash this quarter and, combined with higher quarter-on-quarter
gold prices, lifted the Group NCE margin to 20 per cent in the December
quarter from 18 per cent in the September quarter. NCE is the margin
generated by the business after all operating costs, capital expenditure
(growth and sustaining) and near mine exploration costs. The higher NCE
margin was achieved in spite of the rand and Australian dollar strengthening
by six per cent and nine per cent respectively against the US dollar during
the quarter. It is note-worthy that we have achieved an NCE margin of 20 per
cent within a year of setting ourselves that goal. We intend to consolidate
these initial gains and position the Group to generate sustainable margins at
long term sustainable gold prices. Lower costs also enabled Gold Fields to
generate almost R1 billion (US$136 million) in cash this quarter and,
combined with higher quarter-on-quarter gold prices, lifted the Group NCE
margin to 20 per cent in the December quarter from 18 per cent in the
September quarter. NCE is the margin generated by the business after all
operating costs, capital expenditure (growth and sustaining) and near mine
exploration costs. The higher NCE margin was achieved in spite of the rand
and Australian dollar strengthening by six per cent and nine per cent
respectively against the US dollar during the quarter. It is note-worthy that
we have achieved an NCE margin of 20 per cent within a year of setting
ourselves that goal. We intend to consolidate these initial gains and
position the Group to generate sustainable margins at a range of long-term
gold prices.
Despite our sound operational performance, the five fatalities reported
during the quarter are a severe setback in our journey towards Zero Harm at
our mines. We will step-up our efforts to improve our safety performance.
Nonetheless, our initiatives are bearing fruit since our fatalities and
serious injuries continue to trend downwards; fatalities have reduced from 31
in calendar 2008 to 26 in calendar 2009 to 18 last year, of which 17 occurred
in South Africa. We are determined to continue reducing the safety risks at
our operations and further reduce the number of fatalities this year.
The integration and rationalisation of the Kloof, Driefontein and South
African regional management teams at our South Africa legacy mines has been
implemented and resulted in a flatter management structure, which should lead
to a greater focus on operational efficiencies. Production at South Deep
improved quarter on quarter despite the week-long strike at the mine in
November. South Deep continued to achieve key milestones, with the partial
installment of the head-gear on the ventilation shaft during December being a
case in point. The mines in our international regions continued to show
strong financial and operational performances. Damang reported quarterly
production of 60koz as the new secondary crusher approached full capacity,
while St Ives achieved a long- term sustainable target of 125koz in the
December quarter, which annualises to 500koz.
Our growth strategy continues to gather momentum. The Far South East joint
venture project in the Philippines has been resourced and underground
drilling has commenced, while drilling and feasibility work continues at the
Chucapaca project in Peru. Our ongoing drilling campaign at the 85 per cent
owned Yanfolila project in Mali confirms the existence of a number of high
grade outcropping shoots within close proximity of each other on the southern
part of the property. Metallurgical test work on a new process continued at
the 12moz Arctic Platinum poly- metallic deposit in Finland to determine
whether metals as opposed to concentrates can be produced on site at higher
recoveries, thus improving the economics of this project. We hope that we
will be able to make construction decisions on all four of these projects
within the next 18 to 24 months. These exciting projects will help us to
achieve our goal of having 5moz either in production or in development by
2015.
Shareholders approved the terms of our three empowerment transactions at the
Special General Meeting held in November. The deals, which include an
Employee Share Option plan for 10.75 per cent of GFIMSA, have been completed
and enabled us to achieve our 2014 equity empowerment target. At the AGM, Dr
Mamphela Ramphele took over the Chair of Gold Fields from Alan Wright, who
had served the company with distinction for over 40 years."
Stock data JSE Limited - (GFI)
Number of shares in Range - Quarter ZAR105.00 -
issue ZAR125.90
- at end December 720,796,887 Average Volume - 1,839,490
2010 Quarter shares/day
- average for the 715,825,482 NYSE - (GFI)
quarter
Free Float 100 per cent Range - Quarter US$15.03 -
US$18.09
ADR Ratio 1:1 Average Volume - 3,683,738
Quarter shares/day
Bloomberg/Reuters GFISJ/GFLJ.J
Key statistics
SOUTH AFRICAN RAND
Six months to
Quarter
Dec Dec
Dec
2009 2010
2009
Gold produced* 56,145 56,183
27,981
Total cash cost 147,495 163,416
147,648
Notional cash expenditure 212,277 240,910
216,830
Tonnes milled/treated 27,576 29,008
14,017
Revenue 252,464 296,545
263,828
Operating costs 338 352
333
Operating profit 6,265 8,161
3,478
Operating margin 40 45
43
NCE margin 16 19
18
Net (loss)/earnings 2,416 (76)
1,409
343 (11)
200
Headline (loss)/earnings 1,833 (77)
1,381
260 (11)
196
Net earnings excluding gains 1,647 2,491
1,022
and losses on foreign
exchange, financial
instruments, non-recurring 234 350
145
items and share of
profit/(loss) of associates
after royalties and taxation
Quarter
Sep Dec
2010 2010
Gold produced* 28,232 27,951
kg
Total cash cost 164,898 161,894
R/kg
Notional cash expenditure 238,348 243,506
R/kg
Tonnes milled/treated 14,510 14,498
000
Revenue 289,329 303,958
R/kg
Operating costs 357 348
R/tonne
Operating profit 3,921 4,240
Rm
Operating margin 43 46
%
NCE margin 18 20
%
Net (loss)/earnings 701 (777)
Rm
99 (110) SA
c.p.s.
Headline (loss)/earnings 699 (776)
Rm
99 (110) SA
c.p.s.
Net earnings excluding gains 1,016 1,475
Rm
and losses on foreign
exchange, financial
instruments, non-recurring 144 206 SA
c.p.s.
items and share of
profit/(loss) of associates
after royalties and taxation
UNITED STATES DOLLARS
Quarter
Dec
Sep
2010
2010
Gold produced* oz (000) 898
908
Total cash cost $/oz 728
697
Notional cash expenditure $/oz 1,094
1,007
Tonnes milled/treated 000 14,498
14,510
Revenue $/oz 1,366
1,223
Operating costs $/tonne 50
48
Operating profit $m 610
533
Operating margin % 46
43
NCE margin % 20
18
Net (loss)/earnings $m (106)
95
US c.p.s. (15)
13
Headline (loss)/earnings $m (106)
95
US c.p.s. (15)
13
Net earnings excluding $m 211
138
and losses on foreign
exchange, financial
instruments, non-recurring US c.p.s. 29
20
items and share of
profit/(loss) of associates
after royalties and taxation
Quarter Six months
to
Dec Dec
Dec
2009 2010
2009
Gold produced* 900 1,806
1,806
Total cash cost 613 712
600
Notional cash expenditure 900 1,049
863
Tonnes milled/treated 14,017 29,008
27,576
Revenue 1,096 1,292
1,026
Operating costs 44 49
44
Operating profit 463 1,143
819
Operating margin 43 45
40
NCE margin 18 19
16
Net (loss)/earnings 187 (11)
316
27 (2)
45
Headline (loss)/earnings 182 (11)
240
26 (2)
34
Net earnings excluding gains 135 349
215
and losses on foreign
exchange, financial
instruments, non-recurring 20 49
31
items and share of
profit/(loss) of associates
after royalties and taxation
* All of the key statistics given above are managed figures, except for gold
produced which is attributable equivalent production.
All operations are wholly owned except for Tarkwa and Damang in Ghana (71.1
per cent) and Cerro Corona in Peru (80.7 per cent).
Gold produced (and sales) throughout this report includes copper gold
equivalents of approximately 6 per cent.
Certain forward looking statements
Certain statements in this document constitute "forward looking statements"
within the meaning of Section 27A of the US Securities Act of 1933 and
Section 21E of the US Securities Exchange Act of 1934.
Such forward looking statements involve known and unknown risks,
uncertainties and other important factors that could cause the actual
results, performance or achievements of the company to be materially
different from the future results, performance or achievements expressed or
implied by such forward looking statements. Such risks, uncertainties and
other important factors include among others: economic, business and
political conditions in South Africa, Ghana, Australia, Peru and elsewhere;
the ability to achieve anticipated efficiencies and other cost savings in
connection with past and future acquisitions, exploration and development
activities; decreases in the market price of gold and/or copper; hazards
associated with underground and surface gold mining; labour disruptions;
availability terms and deployment of capital or credit; changes in government
regulations, particularly environmental regulations; and new legislation
affecting mining and mineral rights; changes in exchange rates; currency
devaluations; inflation and other macro-economic factors, industrial action,
temporary stoppages of mines for safety and unplanned maintenance reasons;
and the impact of the AIDS crisis in South Africa. These forward looking
statements speak only as of the date of this document.
The company undertakes no obligation to update publicly or release any
revisions to these forward looking statements to reflect events or
circumstances after the date of this document or to reflect the occurrence of
unanticipated events.
Health and safety
We regret to report that five fatalities occurred at the South Africa region
during the quarter. Three accidents were due to gravity fall of ground
incidents and two were related to tramming accidents.
In comparison with the previous quarter, the Group`s fatal injury frequency
rate improved from 0.18 to 0.12. The lost day injury frequency rate and the
days lost frequency rate were similar quarter on quarter at 4.35 and 194
respectively. The serious injury frequency rate improved by 31 per cent from
2.54 to 1.75.
The newly formed Kloof/Driefontein Complex ("KDC") achieved 1 million
fatality free shifts, with Kloof Main shaft achieving a milestone of 1.5
million fatality free shifts. The strategy of engineering out the risk in the
South Africa region and ensuring compliance to standards and procedures
continues to be core to improving safety. The progress with implementing
engineering controls to reduce the risk at source has improved the risk
profile of the mines. This was achieved through installation of in-stope
netting, pre-conditioning of stope panels which is now standard and
installation of additional support. Compliance to standards is being driven
by management and supervisors with the help of technical experts, while
action is taken against non-compliance.
Definitions
Lost Day Injury (LDI) takes into account any injury occurring in the
workplace where a person is unable to attend a full shift due to his injury
at any time following the injury.
Days Lost takes into account the number of days lost due to injuries
recorded.
Serious Injury takes into account, any injury where a person is defined as an
LDI but unable to return to work within 14 days of their injury occurring.
Financial review
Quarter ended 31 December 2010 compared with quarter ended 30 September 2010
Revenue
Attributable gold production decreased by 1 per cent from 908,000 ounces in
the September quarter to 898,000 ounces in the December quarter. At the South
African operations, production decreased by 2 per cent from 497,000 ounces to
485,000 ounces.
Attributable gold production at the West African operations decreased by 2
per cent from 172,000 ounces to 169,000 ounces.
Attributable equivalent gold production at the South American operation
decreased by 13 per cent from 86,000 ounces to 75,000 ounces. At the
Australian operations, gold production increased by 10 per cent from 153,000
ounces to 169,000 ounces.
At the South Africa region, gold production in the December quarter at both
KDC and Beatrix was 4 per cent lower than the September quarter at 310,600
ounces (9,661 kilograms) and 99,000 ounces (3,080 kilograms) respectively.
This was mainly due to lower volumes mined and processed at KDC and lower
underground grades and volumes mined at Beatrix. At South Deep, production
increased by 7 per cent from 70,700 ounces (2,198 kilograms) to 75,500 ounces
(2,349 kilograms) due to improved mining volumes.
At the West Africa region, managed gold production at Tarkwa decreased by 5
per cent to 176,600 ounces for the quarter mainly due to decreased heap leach
throughput and a lower CIL head grade. At Damang, gold production increased
by 7 per cent from 56,500 ounces to 60,400 ounces, with the newly installed
secondary crusher allowing more hard higher grade ore to be processed.
At the South America region, production at Cerro Corona decreased by 11 per
cent from 105,800 equivalent ounces in the September quarter to 93,700
equivalent ounces in the December quarter. This decrease was due to planned
lower plant throughput, lower gold head grade and a reduction in metal
recoveries.
At the Australasia region, Agnew has reverted back to historical levels of
production with gold production increasing by 25 per cent to 44,300 ounces,
due to an increase in yield and underground volumes. At St Ives, gold
production increased by 6 per cent from 117,900 ounces to 125,100 ounces
mainly due to an increase in underground tonnes.
The average quarterly US dollar gold price achieved increased from US$1,223
per ounce in the September quarter to US$1,366 per ounce in the December
quarter. The average rand/US dollar exchange rate at R6.92 was 6 per cent
stronger than the September quarter level of R7.36 and the average Australian
dollar strengthened 9 per cent from 90 cents to 98 cents to the US dollar.
The resultant rand gold price increased from R289,329 per kilogram to
R303,958 per kilogram. The stronger Australian dollar mostly offset the
stronger US dollar gold price, resulting in the Australian dollar gold price
being similar quarter on quarter at A$1,384 per ounce.
Revenue increased from R9,053 million (US$1,230 million) in the September
quarter to R9,255 million (US$1,334 million) in the December quarter due to
the higher gold price received.
Operating costs
Net operating costs decreased from R5,132 million (US$697 million) in the
September quarter to R5,015 million (US$724 million) in the December quarter.
Total cash cost decreased from R164,898 per kilogram (US$697 per ounce) to
R161,894 per kilogram (US$728 per ounce).
At the South Africa region, operating costs decreased by 4 per cent from
R3,075 million (US$418 million) to R2,964 million (US$428 million) mainly due
to cost reductions through business restructuring of R66 million (US$10
million) as well as lower electricity charges. Total cash cost at the South
African operations decreased by 1 per cent from R195,627 per kilogram (US$827
per ounce) to R194,115 per kilogram (US$872 per ounce).
At the West Africa region, operating costs including gold-in-process
movements, decreased by 3 per cent from US$143 million (R1,051 million) in
the September quarter to US$139 million (R960 million) in the December
quarter despite increases in power costs. Total cash cost at the West African
operations decreased from US$616 per ounce in the September quarter to US$540
per ounce in the December quarter due to the reduced operating cost base
combined with a once-off royalty credit adjustment.
At Cerro Corona in South America, operating costs including gold- in-process
movements amounted to US$37 million (R252 million), which was US$2 million
less than the September quarter. Total cash cost at Cerro Corona increased
from US$354 per ounce in the September quarter to US$449 per ounce in the
December quarter as a consequence of the lower production. At the Australasia
region, operating costs including gold-in-process movements increased from
A$109 million (R716 million) to A$124 million (R840 million). At St Ives, net
operating costs increased by A$11 million to A$95 million mainly due to the
increase in production. At Agnew, operating costs were A$3 million higher
than the previous quarter at A$28 million due to the increased production and
increased mining equipment maintenance costs.
Total cash cost for the region decreased from A$735 per ounce (US$658 per
ounce) to A$731 per ounce (US$719 per ounce).
Operating margin
The net effect of the changes in revenue and costs, after taking into account
gold-in-process movements, was a 8 per cent increase in operating profit from
R3,921 million (US$533 million) in the September quarter to R4,240 million
(US$610 million) in the December quarter . The Group operating margin was 46
per cent compared with 43 per cent in the September quarter. The margin at
the South African operations increased from 31 per cent to 35 per cent. At
the West African operations the margin increased from 52 per cent to 57 per
cent. At Cerro Corona in South America the margin was 72 per cent compared
with 71 per cent in the previous quarter, while at the Australian operations
the margin was 48 per cent, similar to the 47 per cent achieved in the
previous quarter.
Amortisation
Amortisation decreased from R1,443 million (US$196 million) in the September
quarter to R1,334 million (US$193 million) in the December quarter. This was
mainly due to an estimate adjustment at Tarkwa during the quarter.
Amortisation at the remaining mines was in line with production.
Other
Net interest paid of R65 million (US$9 million) in the December quarter
compares with net interest paid of R70 million (US$10 million) in the
September quarter. In the December quarter interest paid of R140 million
(US$20 million) was partly offset by interest received of R56 million (US$8
million) and interest capitalised of R19 million (US$3 million). This
compares with interest paid of R120 million (US$16 million), partly offset by
interest received of R35 million (US$4 million) and interest capitalised of
R15 million (US$2 million) in the September quarter. The higher interest
received in the December quarter was due to higher cash balances in the
December quarter.
The share of gain of associates after taxation of R11 million (US$1 million)
in the December quarter compares with a loss of R218 million (US$30 million)
in the September quarter. The December quarter includes R7 million (US$1
million) relating to a translation adjustment on Rusoro and R4 million (US$0
million) gains from the Group`s 34.9 per cent interest in Rand Refinery. In
the September quarter R236 million (US$32 million) related to a translation
loss as a result of Rusoro applying hyper inflation accounting to its
investments in Venezuela, and R18 million (US$2 million) related to gains
from Rand Refinery.
The gain on foreign exchange of R1 million (US$0 million) in the December
quarter compares with a loss of R11 million (US$2 million) in the September
quarter. These exchange differences relate to the conversion of offshore cash
holdings into their functional currencies.
The gain on financial instruments of R10 million (US$1 million) in the
December quarter, compares with a loss of R3 million (US$0 million) in the
September quarter. The December quarter relates to a positive valuation of
listed warrants. The loss in the September quarter related to losses on
outstanding US$/ZAR and A$/ZAR forward cover contracts. Refer to page 19 of
this report for more detail.
Share based payments of R74 million (US$11 million) was R45 million (US$5
million) lower than the September quarter`s R119 million (US$16 million) due
to forfeiture adjustments in the December quarter.
Other costs increased from R24 million (US$3 million) in the September
quarter to R80 million (US$11 million) in the December quarter. This increase
was mainly due to a write-off of costs incurred on the Abosso Deeps
feasibility study at Damang of R22 million (US$3 million).
Exploration
Exploration expenditure increased from R124 million (US$17 million) in the
September quarter to R223 million (US$32 million) in the December quarter
attributable primarily to:
i) increased expenditure at Chucapaca of R36 million (US$5 million).
Expenditure for the quarter amounted to R48 million (US$7 million);
ii) increased expenditure at Far South East (FSE) of R21 million (US$3
million). Expenditure for the quarter amounted to R21 million (US$3 million);
and
iii) increased expenditure at Yanfolila of R14 million (US$2 million).
Expenditure for the quarter amounted to R28 million (US$4 million).
The balance of the increase was due to increased exploration activity across
all projects. Refer to the exploration and corporate development section of
this report for more detail of exploration activities.
Feasibility and evaluation costs
Feasibility and evaluation costs of R66 million (US$9 million) were incurred
in the December quarter compared to Rnil (US$nil) in the September quarter.
R43 million (US$6 million) was incurred at the Chucapaca project in Peru and
R23 million (US$3 million) was incurred at the Far South East (FSE) project
in the Philippines.
No feasibility and evaluation costs were incurred at these two projects in
the September quarter due to work programmes only beginning in the December
quarter.
Non-recurring items
The non-recurring items in the December quarter of R2,329 million (US$327
million) were mainly as a result of a series of empowerment transactions
which included share-based payments for the Employee Share Option plan of
R1.2 billion (US$172 million), share-based payments for the South Deep
transaction of R825 million (US$116 million), share-based payments for the
GFIMSA transaction of R73 million (US$10 million), voluntary separation
packages of R95 million (US$13 million) and business process re-engineering
and restructuring costs of R84 million (US$12 million) at all our operations.
Refer to empowerment transactions on page 12 for more detail.
The non-recurring items in the September quarter of R138 million (US$19
million) were mainly as a result of voluntary separation packages of R118
million (US$16 million) and costs incurred of R24 million (US$3 million) on
business process re-engineering and restructuring at the South African,
Ghanaian and Australian operations partly offset by profit on the sale of
assets and investments of R4 million (US$0 million).
Royalties
Government royalties decreased from R218 million (US$30 million) in the
September quarter to R92 million (US$14 million) in the December quarter. The
decrease was due to the once-off royalty credit adjustment at the Ghanaian
operations.
Taxation
Taxation for the quarter amounted to R561 million (US$81 million) compared
with R632 million (US$86 million) in the September quarter.
Normal taxation increased from R459 million (US$62 million) to R680 million
(US$97 million) in line with the increase in taxable profit. Deferred
taxation moved from a charge of R172 million (US$23 million) in the September
quarter to a credit of R119 million (US$16 million) in the December quarter.
This movement was due to a R377 million (US$53 million) credit as result of a
decrease in the deferred taxation rate at the South African operations.
In South Africa the mining operations are taxed on a variable rate that
increases as profitability increases. The tax rate used to calculate deferred
tax is based on the Group`s current estimate of future profitability when
temporary differences will reverse.
Earnings
Net loss attributable to ordinary shareholders amounted to R777 million
(US$106 million) or 110 SA cents per share (US$0.15 per share), compared with
a net profit of R701 million (US$95 million) or 99 SA cents per share
(US$0.13 per share) in the September quarter.
Headline losses i.e. losses excluding the after tax effect of asset sales,
impairments and the sale of investments, amounted to R776 million (US$106
million) or 110 SA cents per share (US$0.15 per share), compared with
headline earnings of R699 million (US$95 million) or 99 SA cents per share
(US$0.13 per share) in the September quarter.
Earnings excluding non-recurring items as well as gains and losses on foreign
exchange, financial instruments and gains or losses of associates after
royalties, taxation amounted to R1,475 million (US$211 million) or 206 SA
cents per share (US$0.29 per share), compared with earnings of R1,016 million
(US$138 million) or 144 SA cents per share (US$0.20 per share) reported in
the September quarter, an increase of 45 per cent.
Cash flow
Cash inflow from operating activities for the quarter amounted to R3,889
million (US$557 million), compared with R2,251 million (US$308 million) in
the September quarter. This quarter on quarter increase of R1.6 billion
(US$249 million) was mainly due to higher operating profit, positive
movements in working capital and lower royalties and taxation paid. The
release of working capital of R802 million (US$109 million) in the December
quarter compares with an investment into working capital of R753 million
(US$102 million) in the September quarter.
Dividends of R149 million (US$20 million) were paid to non-controlling
interest holders at Tarkwa and Damang in the December quarter, compared with
dividends paid to ordinary shareholders of R494 million (US$67 million) in
the September quarter.
Capital expenditure increased from R2,225 million (US$302 million) in the
September quarter to R2,414 million (US$347 million) in the December quarter.
At the South Africa region, capital expenditure decreased from R1,317 million
(US$179 million) in the September quarter to R1,257 million (US$182 million)
in the December quarter mainly due to lower capital expenditure at KDC.
Capital expenditure at South Deep amounted to R511 million (US$74 million) in
the December quarter compared with R492 million (US$67 million) in the
September quarter, with the majority of the expenditure on development and
the ventilation shaft deepening and infrastructure. Expenditure on ore
reserve development (ORD) was R8 million less at R485 million. KDC`s ORD
decreased from R396 million to R387 million and Beatrix`s ORD increased from
R97 million to R98 million quarter on quarter.
At the West Africa region, capital expenditure increased from US$74 million
to US$99 million due to expenditure on mining fleet and equipment at Damang
as we transition to owner mining. In South America, at Cerro Corona, capital
expenditure increased from US$11 million to US$20 million due to timing of
project expenditure.
At the Australia region, capital expenditure increased from A$42 million to
A$44 million for the quarter. At Agnew, capital expenditure increased from
A$11 million to A$16 million mainly due to a new ventilation system and new
fans at the Waroonga underground mine. St Ives decreased from A$31 million to
A$28 million. The majority of capital was spent on exploration and mine
development.
Payment for FSE of R371 million (US$54 million) included R69 million (US$10
million) paid in option fees to Lepanto Consolidated Mining Company and R302
million (US$44 million) as a non-refundable down-payment to Liberty Express
Assets in accordance with the agreement concluded in 2010 whereby Gold Fields
has an option to acquire 60 per cent of the FSE project.
Purchase of investments of R43 million (US$6 million) mainly relates to 1.6
million shares acquired in Atacama Pacific Gold Corporation of R31 million
(US$4 million) and a R12 million (US$2 million) loan made to one of the
Group`s mining contractors at St Ives secured against their mining equipment.
Net cash inflow from financing activities in the December quarter amounted to
R358 million (US$55 million). Loans received in the December quarter amounted
to R6.8 billion (US$986 million) as a result of the bond issue on 7 October
2010. Loans repaid amounted to R6.5 billion (US$941 million), consisting
primarily of an offshore facility of R3.4 billion (US$500 million), R2.6
billion (US$370 million) of the South African commercial paper programme,
R290 million (US$42 million) of working capital loans and a partial repayment
of the non-recourse term loan at Cerro Corona of R68 million (US$10 million).
Net cash inflow for the December quarter at R1,177 million (US$172 million)
compared with R717 million (US$107 million) in the September quarter. After
accounting for a negative translation adjustment of R27 million (positive
US$24 million) on offshore cash balances, the net cash inflow for the
December quarter was R1,151 million (US$196 million). The cash balance at the
end of December was R5,464 million (US$810 million) compared with R4,313
million (US$614 million) at the end of September.
Notional cash expenditure (NCE)
Notional cash expenditure is defined as operating costs (including general
and administration) plus capital expenditure, which includes brownfields
exploration, and is reported on a per kilogram and per ounce basis - refer to
the detailed table on page 25 of this report.
NCE per ounce influences how much free cash flow is available in order to pay
taxation, interest, greenfields exploration and dividends.
NCE margin is defined as the difference between revenue per ounce and NCE per
ounce expressed as a percentage.
The NCE for the Group for the December quarter amounted to R243,506 per
kilogram (US$1,094 per ounce) compared with R238,348 per kilogram (US$1,007
per ounce) in the September quarter. The NCE margin for the Group improved
from 18 per cent to 20 per cent.
In the South Africa region, NCE decreased from R284,118 per kilogram
(US$1,201 per ounce) to R279,715 per kilogram (US$1,257 per ounce). The NCE
margin of 7 per cent in the December quarter compares with 1 per cent in the
September quarter. The higher margin was due to the decrease in operating
cost and capital expenditure and a higher rand gold price received. The
overall NCE margin is impacted by the ongoing funding of the South Deep
growth project. The NCE excluding South Deep decreased from R256,433 per
kilogram (US$1,084 per ounce) in the September quarter to R252,202 per
kilogram (US$1,134 per ounce) in the December quarter. The NCE margin
excluding South Deep of 16 per cent in the December quarter compares with 11
per cent in the September quarter.
In the West Africa region, NCE increased from US$883 per ounce to US$1,009
per ounce and the NCE margin decreased from 28 per cent to 26 per cent due to
the lower production and increased capital expenditure at Damang linked to
the move to owner mining.
In the South America region, NCE increased from US$456 per ounce in the
September quarter to US$650 per ounce in the December quarter due to the
decreased production and increased capital expenditure. The NCE margin
decreased from 64 per cent to 54 per cent.
In the Australia region, NCE reduced from A$1,062 per ounce (US$951 per
ounce) in the September quarter to A$986 per ounce (US$970 per ounce) in the
December quarter due to the increased production resulting in an improved NCE
margin of 29 per cent compared with 22 per cent.
Balance sheet (Investments and net debt)
Investments increased from R885 million (US$126 million) at 30 September 2010
to R1,079 million (US$160 million) at 31 December 2010. This was mainly due
to a positive marked to market valuation of the listed investments.
Net debt (long-term loans plus current portion of long-term loans less cash
and deposits) decreased by 22 per cent from R5,076 million (US$722 million)
in the September quarter to R3,974 million (US$589 million) in the December
quarter, as a result of positive cash generated in the December quarter.
Detailed and operational review
Cost and revenue optimisation initiatives through Business Process Re-
engineering
The Business Process Re-engineering programme (BPR) commenced during the
second half of 2010. The BPR involves a review of the mines` underlying
organisational structures as well as the operational production processes
from the stope to the mill. The objective is to introduce a new business
blueprint, together with an appropriate organisational structure, which will
support sustainable gold output at an NCE margin of 20 per cent in the short
to medium term and 25 per cent in the longer term.
South Africa region
The BPR underpins the suite of M projects under Project 500 which was
established during financial 2008 for delivering optimised cost and revenue
results over a three year period.
Stoping full potential (Project 1M)
Project 1M is a productivity initiative that aims to improve quality mining
volumes by increasing the face advance by between 5 and 10 per cent per
annum. The BPR Stoping full potential project aims to enable the delivery of
full potential at every workface by introducing standardised reporting and
practices and eliminating constraints.
This is being achieved through the following key improvement initiatives:
Implementation of a daily performance management routine and a suite of
tools to minimise lost blasts;
Acceleration of equipping of panels; and
Introduction of new panel tracker initiative to improve section flexibility
and sustainable production. This will be achieved through detailed planning
and scheduling of individual panels and crews for 18 months ahead.
Average face advance regressed slightly from 6.8 metres to 6.7 metres in the
December quarter. Focus continued on safety, improvement of flexibility and
panel availability. The BPR Stoping full potential, amongst others, aims to
improve on quality volume addressing the key constraints which affect
productivity on a shaft by shaft basis.
Developing full potential (Project 2M)
Project 2M is a technology initiative aimed at mechanising all flat- end
development (i.e. development on the horizontal plane) at the long-life
shafts of Driefontein, Kloof and Beatrix. South Deep is excluded as it is
already a fully mechanised mine. The aim of the project is to improve safety
and productivity, reduce development costs and increase ore reserve
flexibility through higher monthly advance rates.
For the December quarter, 73.8 per cent of flat-end metres were advanced by
mechanised means at the long life shafts at KDC and Beatrix compared with
67.6 per cent in the September quarter. This improvement was largely achieved
by an additional 5 rigs on average in service during the past quarter
increasing the number of operational rigs from 49 to 54. Work is also on-
going to address constraints to enable reductions in the lost blast rate as
well as to increase advance per blast, with particular focus on enhancing the
efficiency of the cleaning cycle and improving logistics.
NCE full potential (Project 3M)
Project 3M focused on optimised spend in specified categories. The BPR NCE
full potential project focuses on all categories of spend.
The first phase of the BPR initiatives, which commenced in the second half of
calendar 2010 at KDC and Beatrix in South Africa was concluded at the end of
December 2010 and between R500 million and R1.0 billion of cost reductions
have been scheduled over the next 12 to 24 months. Our intent with BPR in
calendar 2011 is to mitigate as much as is feasible of the anticipated mining
inflation increases. Although the BPR programme is still work in progress,
cost reductions of R173 million have been achieved for the six months to
December.
The first phase of the BPR initiatives, which commenced in the second half of
calendar 2010 at KDC and Beatrix in South Africa was concluded at the end of
December 2010 and between R500 million and R1.0 billion of cost reductions
have been scheduled over the next 12 to 24 months. Our intent with BPR in
calendar 2011 is to mitigate as much as is feasible of the anticipated mining
inflation increases. Although the BPR programme is still work in progress,
cost reductions of R173 million have been achieved for the six months to
December.
In this first phase of re-organising the operations in the South Africa
region, the Driefontein and Kloof operations have successfully been combined
into one entity whose senior management structures have been merged into a
new management team with the primary role of servicing the new
Kloof/Driefontein complex (KDC), but which also has governance oversight
across the South Africa region. The team is now based at the combined mine
complex situated at Libanon Business park in close proximity to KDC and South
Deep.
Six operating business units at the Kloof and Driefontein mines have been
established and are being bedded down and are operating as standalone
business units effectively from this quarter. The new operating units are:
- Driefontein 1 and 5 shafts
- Driefontein 2 and 4 shafts
- Driefontein 6, 7, 8 and 10 shafts
- Kloof 3 and 4 shafts
- Kloof Main, 7, 8 and 10 shafts,
- Reef and waste plants.
The strategic management office which was established during the quarter
began focusing on the second phase of the BPR process. This process includes
identifying and delivering on further potential cost savings as well as
launching the Shaft Full potential programme which is designed to increase
safe quality volume, further improving the NCE margin.
The South Africa region will now consist of three operations, namely the KDC,
Beatrix and South Deep. The revision of the organisational design of Beatrix
and South Deep, to ensure that they are fit for purpose in the new structure,
will be concluded during the March 2011 quarter.
Project 4M
Project 4M focuses on the Mine Health and Safety Council (MHSC) milestones
agreed to on 15 June 2003 at a tripartite health and safety summit,
comprising representatives from Government, organised labour and mining
companies. The focus is on achieving occupational health and safety targets
and milestones over a 10-year period. The commitment was driven by the need
to achieve greater improvements in occupational health and safety in the
mining industry.
One of the milestone targets is that no machine or piece of equipment may
generate a sound pressure level in excess of 110dB(A) after December 2013. In
order to achieve this target the company is focusing on reducing the noise at
source and enforcing the use of personal protective equipment. Good progress
has been made and, by the end of the quarter, 99.2 per cent of equipment
measured was below 110dB(A).
Silicosis remains one of the biggest health risks associated with the gold
mining industry. In order to meet the silicosis targets the company has
several interventions in place, which include:
the upgrading of tip filters by replacing complete unit installations or the
installation of additional first stage pre- filtration systems to increase
dust filtration efficiency and to remove larger particles of dust before they
enter the primary dust filtration unit (92.4 per cent implementation to date
across the region);
the use of foggers to trap dust particles liberated from tipping points
before dust enters the main air stream (83 per cent implementation to date
across the region);
footwall treatment to bind dust on the footwall and prevent it from being
liberated into the intake air ways (100 per cent implementation to date
across the region); and
installation of tip doors. The tip doors are installed into the tipping
points and remain closed when no tipping is taking place, thus reducing dust
from entering the intake airways. The tip doors are spring loaded hence they
are self-closing after tipping is completed (54 per cent implementation to
date across the region).
This progress should enable the Group to meet its targets. It must be noted
that although footwall treatment has been completed in all identified areas,
periodic retreatment is required to maintain effectiveness.
Of the individual gravimetric dust sample measurements taken during the
December quarter, 97.3 per cent were below the occupational exposure limit of
0.1 milligrams per cubic metre, thus meeting the target of not less than 95
per cent of individual samples below the occupational exposure limit of 0.1
milligrams per cubic metre. Progress against all interventions is monitored
monthly.
West Africa region
At Tarkwa, the partial owner maintenance project was successfully
commissioned during the quarter. The full benefit of this project is expected
to impact equipment availability, productivity and life cycle cost of the
mining equipment going forward. The cost saving is expected to be around US$5
million per annum. Focus for the March quarter is directed at productivity
improvements and cost reductions through consumption improvement as well as
price reductions in the areas of mining, processing and maintenance. In
addition, a full review of contractor activities is currently in progress.
At Damang, the owner mining project is ahead of schedule. The implementation
will be completed by March 2011 with full benefits to be realised in the June
2011 quarter.
Australasia region
A major focus area of the business process re-engineering at St Ives is a
heap leach throughput and cost efficiency project. Other initiatives are
focussed on materials consumption, use of contract labour, equipment
utilisation and use of leased equipment across the site.
South Africa region
KDC
December
Septemb
2010 er
2010
Gold produced - 000`oz 310.6
323.4
- kg 9,661
10,058
Yield - underground - g/t 6.6
6.6
- combined - g/t 3.8
3.8
Total cash cost - R/kg 191,088
190,863
- US$/oz 859
807
Notional cash expenditure - R/kg 253,286
261,334
- US$/oz 1,138
1,104
NCE margin - % 16
9
Gold production decreased from 323,400 ounces (10,058 kilograms) in the
September quarter to 310,600 ounces (9,661 kilograms) in the December quarter
due to lower volumes mined and processed. Production in the quarter was
affected by unplanned crew moves due to a fire during the previous quarter,
adverse environmental conditions, lack of face length flexibility and power
failures.
Underground tonnes milled decreased from 1.37 million tonnes in the September
quarter to 1.35 million tonnes in the December quarter due to a decrease in
stoping volumes. Underground yield at 6.6 grams per tonne was similar to the
previous quarter and was as a result of excessive dilution due to ore
handling constraints. Surface tonnes milled decreased from 1.26 million
tonnes to 1.18 million tonnes due to mill downtime. Surface yield decreased
from 0.8 grams per tonne to 0.7 grams per tonne due to the impact of rain on
higher grade ore sources.
Main development increased marginally from 11,955 metres to 11,976 metres and
on-reef development increased by 4 per cent from 1,979 metres to 2,058
metres. The average development value decreased from 2,106 centimeter grams
per tonne in the September quarter to 1,868 centimeter grams per tonne in the
December quarter, due to lower Carbon Leader and Middelvlei Reef values.
Operating costs decreased from R1,949 million (US$265 million) to R1,861
million (US$269 million). This decrease was mainly due to BPR initiatives, a
decrease in employees in service and lower electricity charges, partially
offset by an increase in stores cost. Total cash cost was well contained at
R191,088 per kilogram (US$859 per ounce) similar to the previous quarter`s
R190,863 per kilogram (US$807 million).
Operating profit increased from R948 million (US$129 million) in the
September quarter to R1,057 million (US$152 million) in the December quarter.
Capital expenditure decreased from R680 million (US$92 million) to R586
million (US$85 million) due to lower spend on various projects including the
Driefontein historical tailings dam project.
Notional cash expenditure decreased from R261,334 per kilogram (US$1,104 per
ounce) in the September quarter to R253,286 per kilogram (US$1,138 per ounce)
in the December quarter mainly as a result of the lower cost and capital
expenditure. The NCE margin increased from 9 per cent to 16 per cent.
The estimate for calendar 2011 is as follows:
Gold produced - between 38,500 kilograms and 40,500 kilograms (between
1,238,000 ounces and 1,302,000 ounces)
Total cash cost* at R200,000 per kilogram (US$870 per ounce).
Notional cash expenditure* at R250,000 per kilogram (US$1,090 per ounce).
* Based on an exchange rate of US$1 = R7.14.
Beatrix
December
September
2010
2010
Gold produced - 000`oz 99.0
102.9
- kg 3,080
3,202
- g/t 4.4
4.5
Yield - underground
- combined - g/t 3.0
3.4
Total cash cost - R/kg 192,630
191,599
- US$/oz 866
810
Notional cash expenditure - R/kg 248,799
241,037
- US$/oz 1,118
1,019
NCE margin - % 17
16
Gold production decreased from 102,900 ounces (3,202 kilograms) in the
September quarter to 99,000 ounces (3,080 kilograms) in the December quarter.
This was mainly due to health and safety stoppages by management. This
followed the fatal accidents at North Section and South Section during the
quarter which resulted in lower volumes.
Underground tonnes milled decreased from 686,000 tonnes to 666,000 tonnes and
the underground yield decreased marginally from 4.5 grams per tonne to 4.4
grams per tonne. Surface gold increased from 126 kilograms to 155 kilograms
as a result of milling 362,000 tonnes of surface low grade material this
quarter compared with 251,000 tonnes in the September quarter.
Main development decreased from 6,486 metres in the September quarter to
6,192 metres in the December quarter as planned. The on-reef development
decreased from 1,850 metres to 1,622 metres and the average main development
value increased from 961 centimeter grams per tonne in the September quarter
to 1,044 centimeter grams per tonne in the December quarter, mainly due to
the value variability of the zones being developed.
Operating costs decreased from R627 million (US$85 million) in the September
quarter to R606 million (US$88 million) in the December quarter. This
decrease was mainly due to lower electricity costs. Total cash cost increased
marginally from R191,599 per kilogram (US$810 per ounce) to R192,630 per
kilogram (US$866 per ounce).
Operating profit increased from R294 million (US$40 million) in the September
quarter to R322 million (US$46 million) in the December quarter.
Capital expenditure increased from R145 million (US$20 million) to R160
million (US$23 million) with the majority spent on infrastructure upgrades
and ore reserve development.
Notional cash expenditure increased from R241,037 per kilogram (US$1,019 per
ounce) in the September quarter to R248,799 per kilogram (US$1,118 per ounce)
in the December quarter due to lower production and higher capital
expenditure. The NCE margin increased from 16 per cent to 17 per cent.
The estimate for calendar 2011 is as follows:
Gold produced - between 11,500 kilograms and 12,000 kilograms (between
370,000 ounces and 386,000 ounces)
Total cash cost* at R205,000 per kilogram (US$890 per ounce)
Notional cash expenditure* at R255,000 per kilogram (US$1,100 per ounce).
* Based on an exchange rate of US$1 = R7.14.
South Deep project
December
September
2010
2010
Gold produced - 000`oz 75.5
70.7
- kg 2,349
2,198
Yield - underground - g/t 5.1
5.9
- combined - g/t 3.9
4.4
Total cash cost - R/kg 208,514
223,294
- US$/oz 937
944
Notional cash expenditure - R/kg 428,948
451,137
- US$/oz 1,928
1,907
NCE margin - % (42)
(57)
Gold production at South Deep increased from 70,700 ounces (2,198 kilograms)
in the September quarter to 75,500 ounces (2,349 kilograms) in the December
quarter, due to higher underground mining volumes. This increase in
production was achieved despite a 10 day strike during November 2010.
December production set a new mechanised mining record of 164,000 reef tonnes
broken, primarily due to increased production from long hole stoping and
benching.
Underground ore processed increased from 370,000 tonnes in the September
quarter to 442,000 tonnes in the December quarter. Total tonnes milled, which
included 89,000 tonnes of surface sources and 75,000 tonnes of off-reef
development, increased from 495,000 tonnes in the September quarter to
606,000 tonnes in the December quarter. Yield decreased from 5.9 grams per
tonne in the September quarter to 5.1 grams per tonne in the December quarter
mainly due to lower production from the higher grade 95 3 West area due to
the temporary unavailability of the associated ore pass system due to
maintenance being performed.
Development increased from 2,982 metres to 3,096 metres for the December
quarter. The new mine capital development in phase 1, sub 95 level, decreased
by 3 per cent for the December quarter from 935 metres to 908 metres.
Development in the current mine areas above 95 level increased from 1,774
metres to 1,987 metres. Development below 95 level was negatively impacted by
the industrial action, while current mine development improved primarily due
to an increase in drill rig availability and utilisation. Raiseboring
decreased from 273 metres in the September quarter to 201 metres in the
December quarter as most of the major raiseboring below 95 level was close to
completion. De-stress mining improved from 5,342 square metres in the
September quarter to 6,975 square metres in the December quarter.
Operating costs decreased from R499 million (US$68 million) in the September
quarter to R497 million (US$72 million) in the December quarter. This was
mainly due to lower electricity costs and tight cost controls. Total cash
cost decreased by 7 per cent from R223,294 per kilogram (US$944 per ounce) to
R208,514 per kilogram (US$937 per ounce).
Operating profit increased from R134 million (US$18 million) in the September
quarter to R214 million (US$31 million) in the December quarter.
Capital expenditure increased from R492 million (US$67 million) in the
September quarter to R511 million (US$74 million) in the December quarter in
line with the project plan. The major capital expenditure was on development,
the ventilation shaft deepening and infrastructure, as well as construction
of the new tailings dam facility.
Notional cash expenditure decreased from R451,137 per kilogram (US$1,907 per
ounce) in the September quarter to R428,948 per kilogram (US$1,928 per ounce)
in the December quarter due to the increased production.
South Deep will continue to focus on delivering the planned development
metres, completing the Twin shaft infrastructure and the new tailings dam and
increasing production and development, in line with the build-up plan.
The estimate for calendar 2011 is as follows:
Gold produced - between 10,500 kilograms and 11,400 kilograms (between
338,000 ounces and 367,000 ounces)
Total cash cost* at R210,000 (US$915 per ounce)
Notional cash expenditure* at R405,000 per kilogram (US$1,755 per ounce).
* Based on an exchange rate of US$1 = R7.14.
West Africa region
Ghana
Tarkwa
December
September
2010
2010
Gold produced - 000`oz 176.6
185.5
Yield - heap leach - g/t 0.5
0.5
- CIL plant - g/t 1.4
1.5
- combined - g/t 1.0
1.0
Total cash cost - US$/oz 517
601
Notional cash expenditure - US$/oz 893
885
NCE margin - % 35
28
Gold production decreased from 185,500 ounces in the September quarter to
176,600 ounces in the December quarter. The lower production was as a result
of decreased heap leach throughput and decreased CIL head grade.
Total tonnes mined, including capital stripping, decreased from 34.2 million
tonnes in the September quarter to 32.9 million tonnes in the December
quarter due to wet weather hampering mining activities. Ore mined increased
from 5.2 million tonnes to 5.6 million tonnes, due to a lower strip ratio.
Mined grade was similar to the previous quarter at 1.23 grams per tonne. The
strip ratio reduced from 5.54 in the September quarter to 4.86 in the
December quarter.
The total feed to the CIL plant increased from 2.79 million tonnes in the
September quarter to 2.85 million tonnes in the December quarter despite
power outages. Yield from the CIL plant decreased from 1.5 grams per tonne
for the September quarter to 1.4 grams per tonne for the December quarter as
a result of dewatering activities in the high grade Teberebie Pit as well as
ore competency issues, requiring ore blending to enhance throughput at a
slightly lower yield. The CIL plant produced 126,800 ounces in the December
quarter compared with 133,800 ounces in the September quarter.
Total feed to the North heap leach decreased marginally from 2.08 million
tonnes in the September quarter to 2.06 million tonnes in the December
quarter. The yield at the North heap leach at 0.65 grams per tonne was flat
quarter on quarter. The "High Pressure Grinding Roller" (HPGR) unit at the
South heap leach processed 0.84 million tonnes, compared with 0.88 million
tonnes achieved in the September quarter. The average yield of 0.38 grams per
tonne from HPGR production represented a decrease of 0.01 grams per tonne
against the September quarter. The heap leach process produced 49,800 ounces,
compared with 51,700 ounces in the September quarter. The shortfall was
attributable to increased ore hardness, resulting in lower volumes of
processed feed and lower recoveries. Blending of soft ore with hard ore has
been implemented at the North heap leach as a short-term mitigating strategy,
ahead of the planned upgrade to the tertiary crushing circuit.
Operating costs, including gold-in-process movements, decreased from US$108
million (R791 million) in the September quarter to US$101 million (R695
million) for the December quarter. The decrease was mainly attributable to an
increase of gold-in-process valued at US$2 million in the December quarter
compared with a reduction in stockpiles in the September quarter of US$4
million, complemented by a quarter on quarter reduction in operating costs of
US$1 million. The lower operating costs were mainly as a result of the
decrease in maintenance costs due to the partial implementation of owner
maintenance, partly offset by the increase in power costs due to increased
tariffs. Total cash cost decreased from US$601 per ounce in the September
quarter to US$517 per ounce for the December quarter, mainly as a result of a
once-off royalty credit adjustment as well as the reduction in operating
costs.
Operating profit increased from US$119 million (R879 million) in the
September quarter to US$141 million (R977 million) in the December quarter.
Capital expenditure decreased from US$61 million (R448 million) in the
September quarter to US$56 million (R384 million) in the December quarter,
with new mining equipment, the tailings dam expansion and pre-stripping at
the Teberebie, Pepe, Akontansi and Kotraverchy cutbacks being the major
items.
Notional cash expenditure increased from US$885 per ounce for the September
quarter to US$893 per ounce for the December quarter due to lower production.
The NCE margin increased from 28 per cent to 35 per cent.
The estimate for calendar 2011 is as follows:
Gold produced - between 720,000 ounces and 760,000 ounces
Total cash cost at US$590 per ounce
Notional cash expenditure at US$900 per ounce.
Damang
December
Septemb
2010 er
2010
Gold produced - 000`oz 60.4
56.5
Yield - g/t 1.5
1.4
Total cash cost - US$/oz 608
666
Notional cash
expenditure - US$/oz 1,349
879
NCE margin - % 2
28
Gold production increased from 56,500 ounces in the September quarter to
60,400 ounces in the December quarter, assisted by the flexibility provided
through the installation of the secondary crusher.
Total tonnes mined, including capital stripping, decreased from 3.8 million
tonnes in the September quarter to 3.3 million tonnes in the December
quarter. Ore mined was similar at 1.1 million tonnes. Operational waste was
down from 2.7 million tonnes to 2.2 million tonnes in line with the mining
schedule. This resulted in a strip ratio of 2.0 compared with the September
quarter`s strip ratio of 2.6. Owner mining commenced during November 2010 and
the project is currently one month ahead of schedule with planned completion
by the end of March 2011.
Tonnes processed increased from 1.2 million tonnes in the September quarter
to 1.3 million tonnes in the December quarter and the yield improved from 1.4
grams per tonne to 1.5 grams per tonne. This was mainly due to milling higher
volumes of fresh high grade ore.
Operating costs, including gold-in-process movements, increased from US$35
million (R260 million) in the September quarter to US$38 million (R264
million) in the December quarter mainly due to increased power costs,
processing costs and a change in gold-in-process. Total cash cost decreased
from US$666 per ounce to US$608 per ounce mainly as a result of the increased
production and a once-off royalty credit adjustment.
Operating profit increased from US$34 million (R252 million) in the September
quarter to US$45 million (R310 million) in the December quarter.
Capital expenditure increased from US$13 million (R97 million) in the
September quarter to US$43 million (R305 million) in the December quarter
mainly as a result of the investment in owner mining. The owner mining
project is expected to cost around US$55 million with expenditure to date on
owner mining amounting to US$42 million.
Notional cash expenditure increased from US$879 per ounce in the September
quarter to US$1,349 per ounce in the December quarter also as a result of the
investment in owner mining equipment. The NCE margin decreased from 28 per
cent to 2 per cent.
The estimate for calendar 2011 is as follows:
Gold produced - between 220,000 ounces and 250,000 ounces
Total cash cost at US$700 per ounce
Notional cash expenditure at US$950 per ounce.
South America region
Peru
Cerro Corona
December
September
2010
2010
Gold produced - 000`oz 34.6
45.9
Copper produced - tonnes 9,474
10,250
Total equivalent gold produced - 000` eq oz 93.7
105.8
Total equivalent gold sold - 000` eq oz 87.5
113.7
Yield - gold - g/t 0.8
0.9
- copper - % 0.66
0.66
- combined - g/t 1.9
2.0
Total cash cost - US$/eq oz 449
354
Notional cash expenditure - US$/eq oz 650
456
NCE margin - % 54
64
Gold price * - US$/oz 1,361
1,222
Copper price * - US$/t 8,516
7,141
* Average daily spot price for the period used to calculate total equivalent
gold produced
Gold produced decreased from 45,900 ounces in the September quarter to 34,600
ounces in the December quarter and copper production decreased from 10,250
tonnes to 9,474 tonnes.
The lower gold and copper production compared with the September quarter was
mainly due to lower plant throughput as a result of a plant shutdown
following maintenance of the grinding circuit. Tonnes milled decreased from
1.6 million tonnes in the September quarter to 1.5 million tonnes in the
December quarter. Gold head grade decreased as expected from 1.38 grams per
tonne in the September quarter to 1.18 grams per tonne in the December
quarter while copper head grade increased from 0.78 per cent to 0.80 per
cent.
Metal recoveries reduced from 67.1 per cent in the September quarter to 63.2
per cent in the December quarter for gold and from 85.1 per cent to 82.0 per
cent for copper, mainly driven by the presence of expansive clays in the ore
treated. During the December quarter, concentrate with payable content of
32,300 ounces of gold was sold at an average gold price of US$1,365 per ounce
and 8,800 tonnes of copper were sold at an average copper price of US$7,846
per tonne, net of treatment and refining charges.
Total tonnes mined decreased from 3.15 million tonnes in the September
quarter to 3.01 million tonnes in the December quarter. Ore mined of 1.50
million tonnes was 8 per cent lower than the 1.63 million tonnes in the
September quarter, reflecting the lower plant availability and tonnage
treated. The December quarter`s strip ratio of 1.00, was marginally higher
than the September quarter`s strip ratio of 0.94 and in line with the mine
plan. Gold yield for the December quarter was 0.8 grams per tonne, compared
with 0.9 grams per tonne in the September quarter and copper yield at 0.66
was similar to the previous quarter.
Operating costs, including gold-in-process movements, decreased from US$39
million (R290 million) in the September quarter to US$37 million (R252
million) in the December quarter, mainly due to a concentrate inventory build-
up of 3,500 tonnes, partially offset by an increase in maintenance costs.
Total cash cost at US$449 per equivalent ounce sold for the December quarter
compared with US$354 per equivalent ounce sold in the September quarter,
reflects the effect of the plant shutdown and the increase of concentrate on
hand.
Operating profit decreased from US$103 million (R758 million) in the
September quarter to US$88 million (R604 million) in the December quarter,
reflecting the lower metal production and sales, partially offset by higher
gold and copper prices.
Capital expenditure for the December quarter was US$20 million (R142
million), compared with US$11 million (R82 million) in the September quarter.
The higher expenditure was driven by the construction activities of the
second raise of the tailings dam.
Notional cash expenditure increased from US$456 per equivalent ounce in the
September quarter to US$650 per equivalent ounce in the December quarter as a
result of the higher capital expenditure and the lower equivalent ounces
produced. NCE margin decreased from 64 per cent to 54 per cent.
The estimate for calendar 2011 is as follows:
Metals (gold and copper) produced - between 330,000 equivalent ounces and
360,000 equivalent ounces#
Total cash cost at US$420 per equivalent ounce
Notional cash expenditure at US$700 per equivalent ounce.
# Equivalent ounces are based on a gold price of US$1,325 per ounce and a
copper price of US$8,600 per ton.
Australasia region
Australia
St Ives
December
September
2010
2010
Gold produced - 000`oz 125.1
117.9
Yield - heap leach - g/t 0.4
0.5
- milling - g/t 3.1
2.8
- combined - g/t 2.4
2.2
Total cash cost - A$/oz 768
744
- US$/oz 756
666
Notional cash expenditure - A$/oz 991
1,061
- US$/oz 976
950
NCE margin - % 29
22
Gold production increased from 117,900 ounces in the September quarter to
125,100 ounces in the December quarter due to an increase in underground
tonnes which replaced lower grade open pit ore this quarter.
At the underground operations, ore mined increased from 418,600 tonnes at 5.2
grams per tonne in the September quarter to 484,700 tonnes at 4.6 grams per
tonne in the December quarter, with all four underground operations achieving
higher tonnes. The grade reduction reflects high grade development ore mined
at Athena in the previous quarter and lower grades at Argo this quarter in
accordance with the mining sequence.
At the open pit operations total ore tonnes mined decreased from 1.2 million
tonnes to 0.9 million tonnes. This is in line with a strategy of temporarily
scaling back open pit operations and reducing surface stockpiles. Open pit
grade increased from 1.76 grams per tonne to 2.17 grams per tonne, with high
grade areas within the Apollo pit being mined this quarter.
Gold produced from the Lefroy mill increased from 110,400 ounces in the
September quarter to 119,400 ounces in the December quarter, due to an
increase in head grade from 3.10 grams per tonne to 3.28 grams per tonne. The
increased head grade reflects the strong underground production and higher
grades from the open pits. Production from the heap leach facility decreased
from 7,500 ounces in the September quarter to 5,700 ounces in the December
quarter.
Operating costs, including gold-in-process movements, increased from A$84
million (R552 million) in the September quarter to A$95million (R647 million)
in the December quarter. This was mainly due to increased mill maintenance
costs at the Lefroy mill in addition to an A$11 million gold-in-process
credit in the previous quarter. Total cash cost increased from A$744 per
ounce (US$666 per ounce) to A$768 per ounce (US$756 per ounce).
Operating profit increased from A$77 million (R504 million) to A$79 million
(R535 million), due to higher revenue associated with the increased
production, but partially off-set by the increased costs.
Capital expenditure decreased from A$31 million (R203 million) to A$28
million (R194 million) with the majority of expenditure invested in
exploration and mine development. The Athena Project delivered its first
stope ore production on schedule during December. Full production at this new
mine is expected to be achieved during the third quarter of calendar 2011.
Notional cash expenditure decreased from A$1,061 per ounce (US$950 per ounce)
in the September quarter to A$991 per ounce (US$976 per ounce) in the
December quarter. The NCE margin increased from 22 per cent to 29 per cent.
The estimate for calendar 2011 is as follows:
Gold produced - between 450,000 ounces and 480,000 ounces
Total cash cost* at A$850 per ounce (US$850 per ounce)
Notional cash expenditure* at A$1,200 per ounce (US$1,200 per ounce).
* Based on A$1=US$1.00.
Agnew
December
September
2010
2010
Gold produced - 000`oz 44.3
35.3
Yield - g/t 6.6
5.3
Total cash cost - A$/oz 625
706
- US$/oz 615
632
Notional cash expenditure - A$/oz 969
1,065
- US$/oz 954
954
- % 29
22
NCE margin
Gold production increased from 35,300 ounces in the September quarter to
44,300 ounces in the December quarter. This increase was due to increased
flexibility and stope availability at Waroonga`s Kim Lode, which alleviated
previous access restrictions. Additionally, mining volumes from the Main Lode
also increased.
Ore mined from underground increased from 145,000 tonnes at a head grade of
8.8 grams per tonne in the September quarter to 167,000 tonnes at a head
grade of 8.1 grams per tonne in the December quarter. The average grade
decrease was due to an increased proportion of ore from the lower grade Main
Lode compared with the previous quarter.
Tonnes processed at 208,000 was similar to the September quarter, with a
significant increase in yield from 5.3 grams per tonne to 6.6 grams per tonne
as underground production increased. 43,000 tonnes of lower grade material
from surface stockpiles was treated compared with 64,000 tonnes in the
September quarter.
Operating costs, including gold-in-process movements, increased from A$25
million (R164 million) in the September quarter to A$28 million (R193
million) in the December quarter, which included A$1 million charge to costs
attributable to a draw down of gold inventory and A$1 million spent on
equipment maintenance. This contrasts to the previous quarter where an A$2
million credit was received on building up gold inventory. Total cash cost
per ounce decreased from A$706 per ounce (US$632 per ounce) to A$625 per
ounce (US$615 per ounce) due to the increased production.
Operating profit increased from A$23 million (R153 million) in the September
quarter to A$33 million (R221 million) in the December quarter.
Capital expenditure increased from A$11 million (R73 million) in the
September quarter to A$16 million (R105 million) in the December quarter.
This increase included A$3 million spent on the new ventilation system which
includes a new return air shaft and new primary ventilation fans allowing the
Waroonga underground mine to extend at depth.
Notional cash expenditure decreased from A$1,065 per ounce (US$954 per ounce)
in the September quarter to A$969 per ounce (US$954 per ounce) in the
December quarter. The NCE margin increased from 22 per cent to 29 per cent.
The estimate for calendar 2011 is as follows:
Gold produced - between 160,000 ounces and 190,000 ounces
Total cash cost* at A$800 per ounce (US$800 per ounce)
Notional cash expenditure* at A$1,200 per ounce (US$1,200 per ounce).
* Based on A$1=US$1.00.
Six months ended 31 December 2010 compared with six months ended 31 December
2009
Group attributable gold production for the six months ended 31 December 2010
was similar to the six months ended December 2009, at 1.8 million ounces.
At the South Africa region gold production decreased from 1,050,000 ounces
for the six months ended December 2009 to 982,000 ounces for the six months
ended December 2010. KDC gold production decreased by 9 per cent from 695,000
ounces to 634,000 ounces mainly due to lower grades mined and processed. At
Beatrix, gold production decreased by 7 per cent from 217,000 ounces to
202,000 ounces due to lower mining volumes. South Deep`s gold production
increased by 7 per cent from 137,000 ounces to 146,000 ounces in line with
the build-up plan.
At the West Africa region total managed gold production increased from
445,000 ounces for the six months ended December 2009 to 479,000 ounces for
the six months ended December 2010. At Damang, gold production increased by
21 per cent from 97,000 ounces to 117,000 ounces mainly due to the 13 day
plant shutdown in December 2009 and the commissioning of the secondary
crusher during the six months to December 2010, which improved throughput and
grades. Tarkwa`s production increased from 348,000 ounces to 362,000 ounces
mainly due to an increase in CIL throughput.
At the South America region, gold equivalent production at Cerro Corona
increased from 187,000 ounces for the six months ended 31 December 2009 to
200,000 ounces for the six months ended 31 December 2010 due to the higher
copper price and higher grades.
At the Australasia region, gold production increased from 289,000 ounces for
the six months ended December 2009 to 323,000 ounces for the six months ended
December 2010. St Ives increased by 24 per cent from 196,000 ounces to
243,000 ounces mainly due to an increase in underground tonnes processed and
higher head grades from underground and surface operations. Production at
Agnew decreased by 14 per cent from 93,000 ounces to 80,000 ounces, mainly
due to the restricted underground stope access at Kim South.
Revenue increased by 18 per cent from R15,483 million (US$2,024 million) to
R18,308 million (US$2,564 million). The average gold price at R296,545 per
kilogram (US$1,292 per ounce) compares with R252,464 per kilogram (US$1,026
per ounce) achieved for the six months ended 31 December 2009, an increase of
17 per cent. The Rand strengthened from an average of US$1 = R7.65 to US$1 =
R7.14 or 7 per cent, while the Rand/Australian dollar weakened marginally to
A$1 = R6.70.
Operating costs, including gold-in-process movements, increased by 10 per
cent from R9,218 million (US$1,205 million) to R10,147 million (US$1,421
million). The increase in costs was mainly due to annual wage increases at
all the operations and an increase in electricity costs at the South African
and Ghanaian operations due to tariff increases. At Cerro Corona, the
increase in costs was due to the production build-up and increased statutory
workers participation in profit. Total cash cost for the Group increased from
R147,495 per kilogram (US$600 per ounce) to R163,416 per kilogram (US$712 per
ounce) due to the increase in costs and the introduction of royalties in
South Africa.
At the South Africa region operating costs increased by 8 per cent from
R5,567 million (US$728 million) for the six months ended 31 December 2009 to
R6,039 million (US$846 million) for the six months ended 31 December 2010.
This was due to annual wage increases, a 27.5 per cent increase in
electricity tariffs and normal inflationary increases in stores and
contractors. This was partially offset by cost saving initiatives implemented
during the six months to December 2010 which offset around 4 per cent of the
total increase.
At the West Africa region, operating costs including gold-in-process
movements increased from US$226 million to US$282 million. This was mainly
due to the increase in mining volumes and an increase in power costs.
At the South America region, operating costs at Cerro Corona at US$76
million, were US$9 million more than in the six months ended 31 December
2009. This was mainly due to the increase in production and increased
statutory workers participation in profits because of the increase in
earnings.
At the Australasia region, operating costs including gold-in-process
movements increased from A$212 million to A$232 million due to the increased
production, increased deferred waste charges and increased grade control
drilling at St Ives. At Agnew the increased cost was mainly due to the cost
incurred in rehabilitation of poor ground conditions at Kim South.
Operating profit increased from R6,265 million (US$819 million) to R8,161
million (US$1,143 million).
Negative non-recurring items of R2,467 million (US$346 million) for the six
months ended 31 December 2010, compare with positive non-recurring items of
R1,099 million (US$144 million) for the six months ended 31 December 2009.
The non-recurring items for the six months ended 31 December 2010 were as a
result of the empowerment transactions which included share-based payments
for the Employee Share Option plan of R1.2 billion (US$172 million), share-
based payments for the South Deep transaction of R825 million (US$116
million), share-based payments for the GFIMSA (Gold Fields` South African
operations) transaction of R73 million (US$10 million), voluntary separation
packages of R214 million (US$30 million) and business process re-engineering
costs of R107 million (US$15 million) at all the operations.
The non-recurring items for the six months ended 31 December 2009 included a
R447 million (US$58 million) profit on the sale of our stake in Sino Gold, a
profit on the sale of Eldorado shares of R282 million (US$37 million), Gold
Fields receiving an additional 4,1 million shares valued at R402 million
(US$53 million) received as a result of Gold Fields exercising its top-up
right in Eldorado and Sino Gold, whereby Eldorado acquired all of the
outstanding issued shares of Sino Gold. The balance of R30 million (US$6
million) included a profit on the sale of our stake in an exploration junior,
partly offset by a R60 million (US$8 million) impairment of sundry offshore
exploration investments.
Taxation was similar at R1.2 billion (US$167 million). Normal taxation
increased in line with the increase in taxable profit. Deferred taxation
decreased from R528 million (US$69 million) for the six months ended 31
December 2009 to R53 million (US$8 million) in the six months ended 31
December 2010. The decrease was due to a R377 million (US$53 million) credit
in the December 2010 quarter due a decrease in the deferred taxation rate at
the South African operations.
After accounting for the sundry items, royalties and taxation, the net loss
attributable to ordinary shareholders amounted to R76 million (US$11
million), compared with earnings of R2,416 million (US$316 million) for the
six months ended 31 December 2009.
Earnings excluding non-recurring items, gains and losses on foreign exchange,
financial instruments and losses of associates after royalties and taxation
amounted to R2,491 million (US$349 million) for the six months ended 31
December 2010 compared with R1,647 million (US$215 million) for the six
months ended 31 December 2009.
Exploration and corporate development
Exploration and Corporate Development
Exploration activity during the December quarter focused on three Resource
Development projects, two Advanced Drilling projects and six Initial Drilling
projects in Peru, Chile, Mali, Ghana, Canada, Finland, Kyrgyzstan, Australia
and the Philippines. Near mine exploration continued at St Ives, Agnew and
Damang while ongoing target generation work concentrated on three greenfields
exploration projects, where initial drilling is expected to commence in early
2011.
Resource Development Projects
At the Chucapaca project in Peru (Gold Fields 51 per cent), drilling
continued with ten drills currently on site. Two more rigs were added in
January 2011 to ensure completion of the drilling required to deliver an
indicated resource in the September 2011 quarter. The joint venture partners
have decided to accelerate the project schedule and elements of the Bankable
Feasibility Study will be moved forward to run in parallel with the resource
delineation drilling programme in 2011.
At the Far South East project in the Philippines (Gold Fields option to earn
60 per cent from Lepanto Mining and Liberty Express Assets), work continues
to gain momentum. Activities include drill mobilisation with the first
diamond drill rig on site in December 2010; logistical and site preparation
for underground drilling stations; staff deployment; site facility
construction and community relations. Additional rigs arrived on site in
January 2011.
At the Arctic Platinum project in Finland (Gold Fields 100 per cent), four
drill rigs completed all bench-scale metallurgical holes at the Konttijarvi
and Ahmavaara deposits during the December quarter. Samples have been shipped
to the laboratory to commence flotation and hydrometallurgical bench-scale
testing. Preliminary results on representative samples show flotation
recoveries that equal or exceed the target recoveries in the financial
modeling. Preliminary results of the hyrdrometallurgical pressure oxidation
tests of the concentrates, returned base and precious metal extractions that
are close to or better than targets. The positive preliminary results mean
that Gold Fields has the confidence to move to pilot plant testing and
drilling is well underway to secure the required samples from the various ore
sources. Based on laboratory availability, the pilot plant test work
programme is scheduled to be carried out during the September and December
quarters of 2011.
Advanced Drilling Projects
At the Yanfolila project in southern Mali (Gold Fields 85 per cent), drilling
ramped up in October 2010 and there are now four rigs on site testing seven
priority targets within a 20 kilometer radius of the Komana East and Komana
West deposits. Results have been positive and new interpretations derived
from the infill drilling have highlighted the potential for continuity of
shallow high grade mineralisation. Results from the framework and infill
drilling at Sanioumale West, Kabaya South, Gonka and Guirin West have also
been promising. Metallurgical tests are ongoing on samples from the various
targets. The resource delineation drilling programme will continue into the
March 2011 quarter in parallel with other elements required for the
completion of a scoping study.
At the Talas project in Kyrgyzstan (Gold Fields 60 per cent), the Taldybulak
Exploration License was renewed in November 2010 and is valid until 31
December 2015. Field activities this quarter have consisted of ongoing
community relations programmes, hydrological monitoring and site studies for
potential tailings storage facilities. The elections were completed in
October 2010 without incident. A new coalition government was formed and a
Prime Minister is in place.
Initial Drilling Projects
At the East Lachlan joint ventures in New South Wales, Australia, where Gold
Fields has earned into an 80 per cent interest in two porphyry Au-Cu project
areas (Wellington North and Cowal East) and is earning into 80 per cent on
another two projects with Clancy Exploration Ltd (ASX: "CLY"), persistent
rains and flooding in New South Wales have resulted in a reduced drilling
programme. Drilling recommenced in January 2011.
At the Batangas joint ventures in the Philippines, where Gold Fields can earn
up to a 75 per cent interest in three joint ventures with Mindoro Resources
Ltd. (TSX.V: "MIO"), diamond drilling in the December quarter focused on
several high-grade gold targets associated with brecciated quartz-barite-
enargite veins at the Old Lobo mine. Drilling continued in January 2011 on
the Calumpang target.
Drilling resumed with one diamond drill in early November 2010 at the Woodjam
project in British Columbia, Canada, where Gold Fields can earn up to a 70
per cent interest in two separate joint ventures with the Woodjam Partners
(Fjordland Exploration Inc. (TSX.V: "FEX") and Cariboo Rose Resources (TSX.V:
"CRB")). Step-out drilling at the Southeast zone partially defined the
northwest edge of the porphyry Cu-Au-Mo system. Additional holes at Deerhorn
tested the southeast extension of the previously defined high-grade Cu-Au
zone. Results are encouraging and the zone is still open. Drilling continued
in January 2011 and focused on extensions to the Deerhorn target and the
adjacent Rand claims, which Gold Fields recently optioned from Teslin River
Resources (TSX.V: "TLR").
At the SBX - Pircas projects in Chile (Gold Fields option for 100 per cent),
RC drilling in the December quarter tested the main CSAMT geophysical target,
which is centred on outcrops of silicified breccias. Results have partially
defined deeply oxidised vuggy silica-hosted gold-silver mineralisation under
a thick cap of barren steam-heated alteration, which may represent the centre
of the high sulphidation system. Further drilling is planned in the March
2011 quarter to test the limits of the mineralised system. Initial drilling
is also planned at the adjacent Salares Norte property, where CSAMT
geophysical surveys and trench sampling have defined a promising high
sulphidation target.
Near Mine Exploration
St Ives
Activities focused on resource conversion drilling with the objective to
convert a component of the large inferred resource reported in June 2010 to
Indicated status. Intensive and ultimately successful drill-outs were
completed on the Hamlet underground and Neptune open pit deposits and
significant reserve increases are expected to be reported in the pending
December 2010 Reserve Statement. A large proportion of the 1 million ounce
resource reported on Hamlet in May 2010 is now available for reserve
evaluation. Drilling at Neptune has defined new potential in both primary and
high grade palaeo-channel positions.
Following an extended period of resource development over the last two years
at Athena and Hamlet, which has yielded two new underground mining positions,
focus is turning to new greenfields opportunities at St Ives. A potentially
large gold prospect has been defined at the new Incredible project. Peak
values recorded in two aircore holes were tested with follow-up diamond
drilling. Two diamond holes were completed and intersected visible gold in
stratigraphic position not previously prospective for mineralisation at the
St Ives camp.
Agnew
Deep directional drilling programmes continued at Agnew. Three initial drill
horizons to define continuity of mineralisation to more than 500 metre below
current workings were successfully completed.
Assays continue to indicate broad widths (20 metres to 60 metres true widths)
of mineralisation at moderate grades (1.2 grams per tonne to 3.0 grams per
tonne) with internally higher grade zones. A mining study has commenced to
review the amenability of bulk mining methods for the economic extraction of
this potentially very large inventory.
Damang
Conceptual mining studies indicate considerable potential for further cut-
back opportunities for the Damang open pit. A new phase of deep drilling has
commenced to determine the depth potential of mineralisation below current
designs, with the aim of defining Inferred Resources for follow-up drilling.
The new programme will complete a 160 metre by 40 metre grid with holes
planned to 350 metres beneath the current pit floor, with drilling being
completed from the pit floor. This pattern will be drilled along the entire
strike length of the Greater Damang project area including the Huni, Damang
and Juno resources. Initial results are promising, identifying continuity of
typical Damang-style hydrothermal mineralisation to depths of 250 metres to
350 metres below the current designs. This first phase will be completed by
April 2011.
Cerro Corona
An initial in-pit drill programme to provide additional geological and
alteration data for the updated resource model was completed. A second in-
fill phase of diamond drilling commenced in late December 2010 to provide a
comprehensive geological data set which will be used to update the resource
for the remaining life of mine. Specific focus on material properties and
alteration modeling will accompany the normal grade estimation routines.
Further plans are in progress to assess near surface mineralisation potential
immediately north of current pit designs on the newly acquired Sylvita
concession.
At the Consolidada de Hualgayoc joint venture (Gold Fields 50 per cent)
adjacent to the Cerro Corona mine, there has been no activity since
exploration was suspended in 2009 due to community issues.
Business development
Gold Fields acquired 1,630,870 shares in Atacama Pacific Gold Corporation
(ATM.TSX-V) for a total value of C$4.5 million. Gold Fields holds about 13.4
per cent of the company`s outstanding shares.
Corporate
Ranked top in carbon ratings
On 12 November 2010 Gold Fields announced that it was ranked joint first in
the JSE Top 100 Carbon Disclosure Leadership Index (CDLI), which rates
companies listed on the Johannesburg Stock Exchange in South Africa on their
disclosure of carbon emissions. The CDLI is carried out annually by the
global Carbon Disclosure Project (CDP) organisation amongst 5,000 companies
in sixty countries.
The CDP also evaluates companies based on their strategies and projects to
mitigate the impact of climate change. In this ranking, the Carbon
Performance Ratings, Gold Fields was one of only four JSE Top 100 companies
placed in the top band world-wide for climate mitigation and adaptation
actions.
Sponsorship to University of Johannesburg`s mining engineering
Gold Fields announced an R8 million, three-year investment in the mining
engineering faculty of the University of Johannesburg on 1 December 2010.
The sponsorship aims to forge an alliance between Gold Fields and the
University to promote the study of mining engineering and technology and the
realising of core skills required to sustain not only the company itself but
the local industry at large.
The announcement comes amid a renewed sense of urgency amongst local industry
at large to address the lack of skills in the country. The impact of the
skills shortage is compounded by the departure of established mining
engineers and senior technical staff due to emigration and retirement.
The sponsorship is in addition to a range of other educational initiatives.
Last year the company spent around R165 million on education in South Africa.
Empowerment transactions
During the quarter three Black Economic Empowerment (BEE) transactions were
concluded and accounted for under non-recurring items:
i) An employee Share Option plan for 10.75 per cent of GFIMSA amounting to
R1,227 million (US$172 million);
ii) a broad-based BEE transaction for 10 per cent of South Deep amounting to
R825 million (US$116 million); and
iii) a broad-based BEE transaction for 1 per cent of GFIMSA amounting to R73
million (US$10 million), excluding South Deep.
Cash dividend
In line with the company`s policy to pay out 50 per cent of its earnings,
subject to investment opportunities, a final dividend, for the period ending
31 December 2010, has been declared payable to shareholders as follows:
Final dividend number 74: 70 SA cents per share
last date to trade cum-dividend: Friday 4 March 2011
sterling and US dollar conversion date: Monday 7 March 2011
trading commences ex dividend: Monday 7 March 2011
record date: Friday 11 March 2011
payment date: Monday 14 March 2011
Share certificates may not be dematerialised or rematerialised between
Monday, 7 March 2011 and Friday, 11 March 2011, both dates inclusive.
Outlook
Gold production for the financial and calendar year ending 31 December 2011,
is forecast between 3.5 million attributable equivalent ounces and 3.7
million attributable equivalent ounces. Total cash cost is estimated at
US$760 per ounce (R175,000 per kilogram) and NCE is estimated at US$1,050 per
ounce (R240,000 per kilogram). This estimate is based on an average exchange
rate of R/US$ 7.14 and US$/A$ 1.00. The above is subject to the forward
looking statement on pages 1 and 27. The estimated financial information has
not been reviewed and reported on by the Gold Fields` auditors.
Change in year-end
Gold Fields has changed its financial year-end from June to December to align
the Group reporting with peers in the gold mining industry. As a result this
is a six month reporting period ended 31 December 2010, with the new
financial year ending 31 December 2011.
Basis of accounting
The condensed consolidated preliminary financial information is prepared in
accordance with IAS 34 Interim Financial Reporting. 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.
Audit review
The condensed consolidated preliminary financial statements of Gold Fields
Limited for the period ended 31 December 2010 as set out on pages 14 to 19
have been reviewed by the company`s auditor, KPMG Inc. In their review report
dated 18 February 2011, which is available for inspection at the Company`s
Registered Office, KPMG Inc. state that their review was conducted in
accordance with the International Standard on Review Engagements 2410, Review
of Interim Information Performed by the Independent Auditor of the Entity,
which applies to a review of consolidated preliminary financial information,
and have expressed an unmodified conclusion on the condensed consolidated
preliminary financial statements.
N.J. Holland
Chief Executive Officer
18 February 2011
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
December September
December
SOUTH AFRICAN RAND
2010 2010
2009
Revenue 9,255.3 9,052.8
8,066.9
Operating costs, net (5,015.4) (5,132.0)
(4,589.0)
- Operating costs (5,047.6) (5,173.4)
(4,665.4)
- Gold inventory change 32.2 41.4
76.4
Operating profit 4,239.9 3,920.8
3,477.9
Amortisation and depreciation (1,333.5) (1,442.5)
(1,156.0)
Net operating profit 2,906.4 2,478.3
2,321.9
Net interest paid (64.7) (69.6)
(23.1)
Share of gain/(loss) of associates after
taxation 11.0 (217.6)
43.8
Gain/(loss) on foreign exchange 1.4 (11.1)
7.7
Gain/(loss) on financial instruments 9.5 (2.6)
(54.7)
Share-based payments (73.9) (119.0)
(121.1)
Other (79.7) (23.7)
(25.3)
Exploration (223.2) (123.5)
(167.7)
Feasibility and evaluation costs (66.4) -
-
Profit before royalties, taxation and
non-recurring items 2,420.4 1,911.2
1,981.5
Non-recurring items (2,328.9) (138.3)
432.0
Profit before royalties and taxation 91.5 1,772.9
2,413.5
Royalties (91.9) (217.5)
(107.5)
(Loss)/profit before taxation (0.4) 1,555.4
2,306.0
Mining and income taxation (560.6) (631.5)
(723.9)
- Normal taxation (679.7) (459.2)
(403.6)
- Deferred taxation 119.1 (172.3)
(320.3)
Net (loss)/profit (561.0) 923.9
1,582.1
Attributable to:
- Owners of the parent (777.2) 700.9
1,408.6
- Non-controlling interest 216.2 223.0
173.5
Non-recurring items:
(Loss)/profit on sale of investments (3.5) 1.0
30.0
Profit on sale of assets 2.2 2.7
0.1
Restructuring costs (179.2) (142.0)
2.6
Gain on financial instruments - -
402.1
Share-based payments on BEE transaction (2,124.8) -
-
- ESOP (1,227.3) -
-
- South Deep transaction (824.8) -
-
- GFIMSA transaction (72.7) -
-
Impairment of investments - -
(2.8)
Other (23.6) -
-
Total non-recurring items (2,328.9) (138.3)
432.0
Taxation 58.6 50.0
(57.3)
Net non-recurring items after taxation
and non-controlling interest (2,270.3) (88.3)
374.7
Net (loss)/earnings (777.2) 700.9
1,408.6
Net (loss)/earnings per share (cents) (110) 99
200
Diluted (loss)/earnings per share (cents) (109) 98
198
Headline (loss)/earnings (775.7) 698.5
1,381.4
Headline (loss)/earnings per share
(cents) (110) 99
196
Diluted headline (loss)/earnings per
share (cents) (109) 98
194
Net earnings excluding gains and losses
on foreign exchange, financial
instruments, non-recurring items and
share of gain/(loss) of associates after
royalties and taxation 1,474.6 1,016.3
1,021.9
Net earnings per share excluding gains
and losses on foreign exchange,
financial instruments, non-recurring
items and share of gain/(loss) of
associates after royalties and taxation
(cents) 206 144
145
Gold sold - managed kg 30,449 31,289
30,576
Gold price received R/kg 303,958 289,329
263,828
Total cash cost R/kg 161,894 164,898
147,648
Six months to
December
December
SOUTH AFRICAN RAND
2010
2009
Revenue 18,308.1
15,482.7
Operating costs, net (10,147.4)
(9,217.6)
- Operating costs (10,221.0)
(9,309.5)
- Gold inventory change 73.6
91.9
Operating profit 8,160.7
6,265.1
Amortisation and depreciation (2,776.0)
(2,329.8)
Net operating profit 5,384.7
3,935.3
Net interest paid (134.3)
(72.3)
Share of gain/(loss) of associates after taxation (206.6)
28.0
Gain/(loss) on foreign exchange (9.7)
(55.0)
Gain/(loss) on financial instruments 6.9
(186.5)
Share-based payments (192.9)
(241.2)
Other (103.4)
(30.7)
Exploration (346.7)
(300.5)
Feasibility and evaluation costs (66.4)
-
Profit before royalties, taxation and non-recurring
items 4,331.6
3,077.1
Non-recurring items (2,467.2)
1,098.8
Profit before royalties and taxation 1,864.4
4,175.9
Royalties (309.4)
(205.0)
(Loss)/profit before taxation 1,555.0
3,970.9
Mining and income taxation (1,192.1)
(1,264.5)
- Normal taxation (1,138.9)
(736.1)
- Deferred taxation (53.2)
(528.4)
Net (loss)/profit 362.9
2,706.4
Attributable to:
- Owners of the parent (76.3)
2,415.8
- Non-controlling interest 439.2
290.6
Non-recurring items:
(Loss)/profit on sale of investments (2.5)
758.7
Profit on sale of assets 4.9
1.1
Restructuring costs (321.2)
(3.2)
Gain on financial instruments -
402.1
Share-based payments on BEE transaction (2,124.8)
-
- ESOP (1,227.3)
-
- South Deep transaction (824.8)
-
- GFIMSA transaction (72.7)
-
Impairment of investments -
(59.9)
Other (23.6)
-
Total non-recurring items (2,467.2)
1,098.8
Taxation 108.6
(171.9)
Net non-recurring items after taxation and
non-controlling interest (2,358.6)
926.9
Net (loss)/earnings (76.3)
2,415.8
Net (loss)/earnings per share (cents) (11)
343
Diluted (loss)/earnings per share (cents) (11)
339
Headline (loss)/earnings (77.2)
1,833.0
Headline (loss)/earnings per share (cents) (11)
260
Diluted headline (loss)/earnings per share (cents) (11)
257
Net earnings excluding gains and losses on foreign
exchange, financial
instruments, non-recurring items and share of
gain/(loss) of associates after
royalties and taxation 2,490.9
1,646.7
Net earnings per share excluding gains and losses on
foreign exchange,
financial instruments, non-recurring items and share
of gain/(loss) of
associates after royalties and taxation (cents) 350
234
Gold sold - managed kg 61,738
61,326
Gold price received R/kg 296,545
252,464
Total cash cost R/kg 163,416
147,495
Income statement
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
December September
December
UNITED STATES DOLLARS 2010 2010
2009
Revenue 1,334.2 1,230.0
1,075.6
Operating costs, net (723.9) (697.3)
(613.0)
- Operating costs (728.6) (702.9)
(623.0)
- Gold inventory change 4.7 5.6
10.0
Operating profit 610.3 532.7
462.6
Amortisation and depreciation (192.8) (196.0)
(154.4)
Net operating profit 417.5 336.7
308.2
Net interest paid (9.3) (9.5)
(3.2)
Share of gain/(loss) of associates after
taxation 0.7 (29.6)
5.7
Gain/(loss) on foreign exchange 0.1 (1.5)
0.8
Gain/(loss) on financial instruments 1.4 (0.4)
(7.5)
Share-based payments (10.8) (16.2)
(16.1)
Other (11.4) (3.1)
(3.3)
Exploration (31.9) (16.7)
(22.3)
Feasibility and evaluation costs (9.3) -
-
Profit before royalties, taxation and
non-recurring items 347.0 259.7
262.3
Non-recurring items (326.8) (18.8)
58.3
Profit before royalties and taxation 20.2 240.9
320.6
Royalties (13.7) (29.6)
(14.3)
Profit before taxation 6.5 211.3
306.3
Mining and income taxation (81.2) (85.8)
(96.2)
- Normal taxation (97.1) (62.4)
(53.7)
- Deferred taxation 15.9 (23.4)
(42.5)
Net (loss)/profit (74.7) 125.5
210.1
Attributable to:
- Owners of the parents (105.9) 95.2
187.1
- Non-controlling interest 31.2 30.3
23.0
Non-recurring items:
(Loss)/profit on sale of investments (0.5) 0.1
6.0
Profit on sale of assets 0.3 0.4
-
Restructuring costs (25.7) (19.3)
0.3
Gain on financial instruments - -
52.6
Share-based payments on BEE transaction (297.6) -
-
- ESOP (171.9) -
-
- South Deep transaction (115.5) -
-
- GFIMSA transaction (10.2) -
-
Impairment of investments - -
(0.6)
Other (3.3) -
-
Total non-recurring items (326.8) (18.8)
58.3
Taxation 8.4 6.8
(7.8)
Net non-recurring items after taxation and
non-controlling interest (318.4) (12.0)
50.5
Net (loss)/earnings (105.9) 95.2
187.1
Net (loss)/earnings per share (cents) (15) 13
27
Diluted (loss)/earnings per share (cents) (14) 13
26
Headline (loss)/earnings (105.8) 94.8
182.0
Headline (loss)/earnings per share (cents) (15) 13
26
Diluted headline (loss)/earnings per share
(cents) (15) 13
26
Net earnings excluding gains and losses on
foreign exchange, financial
instruments, non-recurring items and share
of gain/(loss) of associates after
royalties and taxation 210.8 138.1
135.4
Net earnings per share excluding gains and
losses on foreign exchange,
financial instruments, non-recurring items
and share of gain/(loss) of
associates after royalties and taxation
(cents) 29 20
20
South African rand/United States dollar
conversion rate 6.92 7.36
7.49
South African rand/Australian dollar
conversion rate 6.81 6.59
6.80
Gold sold - managed oz (000) 979 1,006
983
Gold price received US$/oz 1,366 1,223
1,096
Total cash cost US$/oz 728 697
613
Six months to
December
December
UNITED STATES DOLLARS 2010
2009
Revenue 2,564.2
2,023.9
Operating costs, net (1,421.2)
(1,204.9)
- Operating costs (1,431.5)
(1,216.9)
- Gold inventory change 10.3
12.0
Operating profit 1,143.0
819.0
Amortisation and depreciation (388.8)
(304.5)
Net operating profit 754.2
514.5
Net interest paid (18.8)
(9.5)
Share of gain/(loss) of associates after taxation (28.9)
3.7
Gain/(loss) on foreign exchange (1.4)
(7.2)
Gain/(loss) on financial instruments 1.0
(24.4)
Share-based payments (27.0)
(31.5)
Other (14.5)
(4.0)
Exploration (48.6)
(39.3)
Feasibility and evaluation costs (9.3)
-
Profit before royalties, taxation and non-recurring
items 606.7
402.3
Non-recurring items (345.6)
143.6
Profit before royalties and taxation 261.1
545.9
Royalties (43.3)
(26.8)
Profit before taxation 217.8
519.1
Mining and income taxation (167.0)
(165.3)
- Normal taxation (159.5)
(96.2)
- Deferred taxation (7.5)
(69.1)
Net (loss)/profit 50.8
353.8
Attributable to:
- Owners of the parents (10.7)
315.8
- Non-controlling interest 61.5
38.0
Non-recurring items:
(Loss)/profit on sale of investments (0.4)
99.2
Profit on sale of assets 0.7
0.1
Restructuring costs (45.0)
(0.4)
Gain on financial instruments -
52.6
Share-based payments on BEE transaction (297.6)
-
- ESOP (171.9)
-
- South Deep transaction (115.5)
-
- GFIMSA transaction (10.2)
-
Impairment of investments -
(7.9)
Other (3.3)
-
Total non-recurring items (345.6)
143.6
Taxation 15.2
(22.5)
Net non-recurring items after taxation and
non-controlling interest (330.4)
121.1
Net (loss)/earnings (10.7)
315.8
Net (loss)/earnings per share (cents) (2)
45
Diluted (loss)/earnings per share (cents) (1)
44
Headline (loss)/earnings (11.0)
239.7
Headline (loss)/earnings per share (cents) (2)
34
Diluted headline (loss)/earnings per share (cents) (2)
34
Net earnings excluding gains and losses on foreign
exchange, financial
instruments, non-recurring items and share of
gain/(loss) of associates after
royalties and taxation 348.9
215.3
Net earnings per share excluding gains and losses on
foreign exchange,
financial instruments, non-recurring items and share
of gain/(loss) of
associates after royalties and taxation (cents) 49
31
South African rand/United States dollar conversion rate 7.14
7.65
South African rand/Australian dollar conversion rate 6.70
6.64
Gold sold - managed oz (000) 1,985
1,972
Gold price received US$/oz 1,292
1,026
Total cash cost US$/oz 712
600
Statement of comprehensive income
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
December September
December
SOUTH AFRICAN RAND
2010 2010
2009
Net (loss)/profit (561.0) 923.9
1,582.1
Other comprehensive (expenses)/income,
net of tax (114.5) (620.0)
587.6
Marked to market valuation of listed
investments 180.4 41.8
(10.9)
Currency translation adjustments and other (275.5) (671.4)
608.9
Share of equity investee`s other
comprehensive (loss)/income (0.3) 7.0
0.7
Deferred taxation on marked to market
valuation of listed investments (19.1) 2.6
(11.1)
Total comprehensive (loss)/income (675.5) 303.9
2,169.7
Attributable to:
- Owners of the parent (893.4) 82.5
1,979.0
- Non-controlling interest 217.9 221.4
190.7
(675.5) 303.9
2,169.7
Six months to
December
December
SOUTH AFRICAN RAND
2010
2009
Net (loss)/profit 362.9
2,706.4
Other comprehensive (expenses)/income, net of tax (734.5)
(365.6)
Marked to market valuation of listed investments 222.2
(208.2)
Currency translation adjustments and other (946.9)
(237.3)
Share of equity investee`s other comprehensive
(loss)/income 6.7
12.4
Deferred taxation on marked to market valuation of
listed investments (16.5)
67.5
Total comprehensive (loss)/income (371.6)
2,340.8
Attributable to:
- Owners of the parent (810.9)
2,057.7
- Non-controlling interest 439.3
283.1
(371.6)
2,340.8
Statement of comprehensive income
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
December September
December
UNITED STATES DOLLARS
2010 2010
2009
Net (loss)/profit (74.7) 125.5
210.1
Other comprehensive income/(expenses),
net of tax 256.8 376.8
(138.0)
Marked to market valuation of listed
investments 25.4 5.7
(1.9)
Currency translation adjustments and other 234.2 369.7
(134.9)
Share of equity investee`s other
comprehensive (loss)/income (0.1) 1.0
0.1
Deferred taxation on marked to market
valuation of listed investments (2.7) 0.4
(1.3)
Total comprehensive income 182.1 502.3
72.1
Attributable to:
- Owners of the parent 133.8 442.4
60.4
- Non-controlling interest 48.3 59.9
11.7
182.1 502.3
72.1
Six months to
December
December
UNITED STATES DOLLARS
2010
2009
Net (loss)/profit 50.8
353.8
Other comprehensive income/(expenses), net of tax 633.6
234.7
Marked to market valuation of listed investments 31.1
(27.2)
Currency translation adjustments and other 603.9
251.5
Share of equity investee`s other comprehensive
(loss)/income 0.9
1.6
Deferred taxation on marked to market valuation of
listed investments (2.3)
8.8
Total comprehensive income 684.4
588.5
Attributable to:
- Owners of the parent 576.2
535.1
- Non-controlling interest 108.2
53.4
684.4
588.5
Statement of financial position
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND UNITED STATES
DOLLARS
June
June
December 2010 December
2010
2010 2010
Property, plant and equipment 53,249.8 52,813.4 7,888.9
6,976.7
Goodwill 4,458.9 4,458.9 660.6
589.0
Non-current assets 1,137.9 1,012.5 168.6
133.8
Investments 1,078.5 1,035.9 159.8
136.8
Current assets 11,136.1 9,019.5 1,649.8
1,191.5
- Other current assets 5,672.3 5,229.0 840.3
690.8
- Cash and deposits 5,463.8 3,790.5 809.5
500.7
Total assets 71,061.2 68,340.2 10,527.7
9,027.8
Shareholders` equity 46,622.5 45,448.9 6,907.1
6,003.8
Deferred taxation 7,061.4 7,142.7 1,046.1
943.6
Long-term loans 7,671.9 3,255.1 1,136.6
430.0
Environmental rehabilitation
provisions 2,271.2 2,295.5 336.5
303.2
Post-retirement health care
provisions 18.0 22.1 2.7
2.9
Other long term provisions 133.2 - 19.7
-
Current liabilities 7,283.0 10,175.9 1,079.0
1,344.3
- Other current liabilities 5,516.8 4,943.9 817.3
653.2
- Current portion of long-term
loans 1,766.2 5,232.0 261.7
691.1
Total equity and liabilities 71,061.2 68,340.2 10,527.7
9,027.8
South African rand/US dollar
conversion rate 6.75
7.57
South African rand/Australian
dollar conversion rate 6.77
6.57
Net debt 3,974.3 4,696.6 588.8
620.4
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 30 June 2010 31,522.4 (1,470.0)
12,590.5
Total comprehensive (expenses)/income - (734.6)
(76.3)
(Loss)/profit for the quarter - -
(76.3)
Other comprehensive (expenses)/income - (734.6)
-
Dividends paid - -
(494.4)
Share-based payments - 2,166.3
-
Transactions with non-controlling
interest - -
-
Shares issued 38.2 -
-
Balance as at 31 December 2010 31,560.6 (38.3)
12,019.8
Non-controlling
Total
interest
equity
Balance as at 30 June 2010 2,806.0
45,448.9
Total comprehensive (expenses)/income 439.3
(371.6)
(Loss)/profit for the quarter 439.2
362.9
Other comprehensive (expenses)/income 0.1
(734.5)
Dividends paid (207.1)
(701.5)
Share-based payments -
2,166.3
Transactions with non-controlling interest 42.2
42.2
Shares issued -
38.2
Balance as at 31 December 2010 3,080.4
46,622.5
UNITED STATES DOLLARS
Share capital Other
Retained
and premium reserves
earnings
Balance as at 30 June 2010 4,597.3 (682.9)
1,718.7
Total comprehensive income/(expenses) - 586.9
(10.7)
(Loss)/profit for the quarter - -
(10.7)
Other comprehensive income - 586.9
-
Dividends paid - -
(67.4)
Share-based payments - 303.4
-
Transactions with non-controlling interest - -
-
Shares issued 5.4 -
-
Balance as at 31 December 2010 4,602.7 207.4
1,640.6
Non-controlling
Total
interest
equity
Balance as at 30 June 2010 370.7
6,003.8
Total comprehensive income/(expenses) 108.2
684.4
(Loss)/profit for the quarter 61.5
50.8
Other comprehensive income 46.7
633.6
Dividends paid (28.9)
(96.3)
Share-based payments -
303.4
Transactions with non-controlling interest 6.4
6.4
Shares issued -
5.4
Balance as at 31 December 2010 456.4
6,907.1
SOUTH AFRICAN RAND
Share capital Other
Retained
and premium reserves
earnings
Balance as at 30 June 2009 31,465.6 (1,135.7)
9,876.2
Total comprehensive (expenses)/income - (358.1)
2,415.8
Profit for the quarter - -
2,415.8
Other comprehensive expenses - (358.1)
-
Dividends paid - -
(564.1)
Share-based payments - 241.2
-
Exercise of employee share options 37.9 -
-
Balance as at 31 December 2009 31,503.5 (1,252.6)
11,727.9
Non-controlling
Total
interest
equity
Balance as at 30 June 2009 2,463.3
42,669.4
Total comprehensive (expenses)/income 283.1
2,340.8
Profit for the quarter 290.6
2,706.4
Other comprehensive expenses (7.5)
(365.6)
Dividends paid -
(564.1)
Share-based payments -
241.2
Exercise of employee share options -
37.9
Balance as at 31 December 2009 2,746.4
44,725.2
UNITED STATES DOLLARS
Share capital Other
Retained
and premium reserves
earnings
Balance as at 30 June 2009 4,589.9 (959.2)
1,357.7
Total comprehensive income - 219.4
315.8
Profit for the quarter - -
315.8
Other comprehensive income - 219.4
-
Dividends paid -
(72.6)
Share-based payments - 31.5
-
Exercise of employee share options 4.9 -
-
Balance as at 31 December 2009 4,594.8 (708.3)
1,600.9
Non-controlling
Total
interest
equity
Balance as at 30 June 2009 305.6
5,294.0
Total comprehensive income 53.4
588.6
Profit for the quarter 38.0
353.8
Other comprehensive income 15.4
234.8
Dividends paid -
(72.6)
Share-based payments -
31.5
Exercise of employee share options -
4.9
Balance as at 31 December 2009 359.0
5,846.4
Statement of cash flows
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
Quarter
December September
December
SOUTH AFRICAN RAND 2010 2010
2009
Cash flows from operating activities 3,889.3 2,250.7
2,105.1
Profit before royalties, tax and
non-recurring items 2,420.4 1,911.2
1,981.5
Non-recurring items (2,328.9) (138.3)
432.0
Amortisation and depreciation 1,333.5 1,442.5
1,156.0
Change in working capital 801.9 (753.2)
(949.2)
Royalties and taxation paid (491.2) (623.3)
(123.4)
Other non-cash items 2,153.6 411.8
(391.8)
Dividends paid (148.5) (494.4)
-
Ordinary shareholders - (494.4)
-
Non-controlling interest holders (148.5) -
-
Cash flows from investing activities (2,921.4) (2,228.0)
(2,008.1)
Capital expenditure - additions (2,414.4) (2,225.4)
(1,967.3)
Capital expenditure - proceeds on disposal 8.9 28.7
2.5
Payment for FSE (371.0) -
-
Royalty termination - -
-
Purchase of investments (43.0) (22.5)
(89.1)
Proceeds on disposal of investments 2.0 1.0
52.7
Environmental and post-retirement health
care payments (103.9) (9.8)
(6.9)
Cash flows from financing activities 358.0 1,188.8
(631.2)
Loans received 6,776.3 4,013.1
3,800.0
Loans repaid (6,482.9) (2,840.1)
(4,455.9)
Non-controlling interest holders loans
received 62.7 -
-
Non-controlling interest holders loans
repaid (20.5) -
-
Shares issued 22.4 15.8
24.7
Net cash inflow/(outflow) 1,177.4 717.1
(534.2)
Translation adjustment (26.8) (194.4)
84.6
Cash at beginning of period 4,313.2 3,790.5
2,277.8
Cash at end of period 5,463.8 4,313.2
1,828.2
*Cash flow before financing activities
and dividend payments 967.9 22.7
97.0
Six months to
December
December
SOUTH AFRICAN RAND 2010
2009
Cash flows from operating activities 6,140.0
3,368.1
Profit before royalties, tax and non-recurring items 4,331.6
3,077.1
Non-recurring items (2,467.2)
1,098.8
Amortisation and depreciation 2,776.0
2,329.8
Change in working capital 48.7
(1,455.8)
Royalties and taxation paid (1,114.5)
(828.0)
Other non-cash items 2,565.4
(853.8)
Dividends paid (642.9)
(564.1)
Ordinary shareholders (494.4)
(564.1)
Non-controlling interest holders (148.5)
-
Cash flows from investing activities (5,149.4)
(3,790.0)
Capital expenditure - additions (4,639.8)
(3,713.6)
Capital expenditure - proceeds on disposal 37.6
5.5
Payment for FSE (371.0)
-
Royalty termination -
(1,998.9)
Purchase of investments (65.5)
(386.4)
Proceeds on disposal of investments 3.0
2,319.0
Environmental and post-retirement health care payments (113.7)
(15.6)
Cash flows from financing activities 1,546.8
12.8
Loans received 10,789.4
7,169.4
Loans repaid (9,323.0)
(7,194.5)
Non-controlling interest holders loans received 62.7
-
Non-controlling interest holders loans repaid (20.5)
-
Shares issued 38.2
37.9
Net cash inflow/(outflow) 1,894.5
(973.2)
Translation adjustment (221.2)
(2.5)
Cash at beginning of period 3,790.5
2,803.9
Cash at end of period 5,463.8
1,828.2
*Cash flow before financing activities and dividend
payments 990.6
(421.9)
Quarter
UNITED STATES DOLLARS December September
December
2010 2010
2009
Cash flows from operating activities 557.0 308.0
279.2
Profit before royalties, tax and
non-recurring items 347.0 259.7
262.3
Non-recurring items (326.8) (18.8)
58.3
Amortisation and depreciation 192.8 196.0
154.4
Change in working capital 109.1 (102.3)
(125.5)
Royalties and taxation paid (68.4) (82.6)
(17.8)
Other non-cash items 303.3 56.0
(52.5)
Dividends paid (20.2) (67.4)
-
Ordinary shareholders - (67.4)
-
Non-controlling interest holders (20.2) -
-
Cash flows from investing activities (420.6) (302.8)
(267.9)
Capital expenditure - additions (347.4) (302.4)
(262.1)
Capital expenditure - proceeds on disposal 1.4 3.9
0.3
Payment for FSE (54.0) -
-
Royalty termination - -
-
Purchase of investments (6.3) (3.1)
(12.4)
Proceeds on disposal of investments 0.3 0.1
7.1
Environmental and post-retirement health
care payments (14.6) (1.3)
(0.8)
Cash flows from financing activities 55.4 169.4
(83.2)
Loans received 986.4 557.4
509.1
Loans repaid (940.7) (390.1)
(595.6)
Non-controlling interest holders loans
received 9.3 -
-
Non-controlling interest holders loans
repaid (2.9) -
-
Shares issued 3.3 2.1
3.3
Net cash inflow/(outflow) 171.6 107.2
(71.9)
Translation adjustment 24.4 5.6
1.8
Cash at beginning of period 613.5 500.7
309.1
Cash at end of period 809.5 613.5
239.0
*Cash flow before financing activities and
dividend payments 136.4 5.2
11.3
Six months to
UNITED STATES DOLLARS December
December
2010
2009
Cash flows from operating activities 865.0
444.5
Profit before royalties, tax and non-recurring items 606.7
402.3
Non-recurring items (345.6)
143.6
Amortisation and depreciation 388.8
304.5
Change in working capital 6.8
(190.3)
Royalties and taxation paid (151.0)
(104.0)
Other non-cash items 359.3
(111.6)
Dividends paid (87.6)
(72.6)
Ordinary shareholders (67.4)
(72.6)
Non-controlling interest holders (20.2)
-
Cash flows from investing activities (723.4)
(486.9)
Capital expenditure - additions (649.8)
(485.4)
Capital expenditure - proceeds on disposal 5.3
0.7
Payment for FSE (54.0)
-
Royalty termination -
(257.1)
Purchase of investments (9.4)
(49.6)
Proceeds on disposal of investments 0.4
306.5
Environmental and post-retirement health care payments (15.9)
(2.0)
Cash flows from financing activities 224.8
(15.0)
Loans received 1,543.8
942.1
Loans repaid (1,330.8)
(962.1)
Non-controlling interest holders loans received 9.3
-
Non-controlling interest holders loans repaid (2.9)
-
Shares issued 5.4
5.0
Net cash inflow/(outflow) 278.8
(130.0)
Translation adjustment 30.0
21.1
Cash at beginning of period 500.7
347.9
Cash at end of period 809.5
239.0
*Cash flow before financing activities and dividend
payments 141.6
(42.4)
*Cash flow before financing activities is defined as the sum of cash flows
from operating activities and cash flows from investing activities.
Reconciliation of headline earnings with net earnings
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
SOUTH AFRICAN RAND UNITED STATES
DOLLARS
Six months to Six months to
December December December
December
2010 2009 2010
2009
Net (loss)/earnings (76.3) 2,415.8 (10.7)
315.8
(Loss)/profit on sale of
investments 2.5 (758.7) 0.4
(99.2)
Taxation effect on sale of
investments (0.4) 116.6 (0.1)
15.2
Profit on sale of assets (4.9) (1.1) (0.7)
(0.1)
Taxation effect on sale of
assets 1.9 0.5 0.1
0.1
Impairment of investments and
other - 59.9 -
7.9
Headline (loss)/earnings (77.2) 1,833.0 (11.0)
239.7
Headline (loss)/earnings per
share - cents (11) 260 (2)
34
Based on headline (loss)/earnings as given above divided by 711,011,673
(December 2009 - 705,208,148) being the weighted average number of ordinary
shares in issue.
Hedging / Derivatives
The Group`s policy is to remain unhedged to the gold price. However, hedges
are sometimes undertaken on a project specific basis as follows:
to protect cash flows at times of significant expenditure;
for specific debt servicing requirements; and
to safeguard the viability of higher cost operations.
Gold Fields may from time to time establish currency financial instruments to
protect underlying cash flows.
South Africa forward cover contracts*
South African rand forward cover contracts were taken out to cover
commitments of the South African operations in various currencies.
Outstanding at the end of December 2010 were the following contracts:
US$/ZAR - US$2.2 million in total, with a negative marked to market value of
US$0.2 million
* Do not qualify for hedge accounting and will be accounted for as derivative
financial instruments in the income statement.
Debt maturity ladder
Figures are in millions unless otherwise stated
31 Dec 2011 31 Dec 2012 31 Dec
2013
Committed loan facilities
(including US$ bond, preference
shares and commercial paper)
Rand million 1,496.2 1,000.0
500.0
US dollar million 40.0 540.0
490.0
Dollar debt translated to rand 270.0 3,645.0
3,307.5
Total (R`m) 1,766.2 4,645.0
3,807.5
Utilisation - Committed loan
facilities
(including US$ bond, preference
shares and commercial paper)
Rand million 1,496.2 -
-
US dollar million 40.0 40.0
40.0
Dollar debt translated to rand 270.0 270.0
270.0
Total (R`m) 1,766.2 270.0
270.0
Long-term loans per balance sheet (R`m)
Current portion of long-term loans
per balance sheet (R`m)
Total loans per balance sheet (R`m)
1 Jan 2014
to
31 Dec 2020
Total
Committed loan facilities
(including US$ bond, preference shares and commercial
paper)
Rand million 1,500.0
4,496.2
US dollar million 1,056.6
2,126.6
Dollar debt translated to rand 7,131.9
14,354.4
Total (R`m) 8,631.9
18,850.6
Utilisation - Committed loan facilities
(including US$ bond, preference shares and commercial
paper)
Rand million -
1,496.2
US dollar million 1,056.6
1,176.6
Dollar debt translated to rand 7,131.9
7,941.9
Total (R`m) 7,131.9
9,438.1
Long-term loans per balance sheet (R`m)
7,671.9
Current portion of long-term loans per balance sheet (R`m)
1,766.2
Total loans per balance sheet (R`m)
9,438.1
Exchange rate: US$1 = R6.75 being the closing rate at the end of the December
2010 quarter.
Operating and financial results
SOUTH AFRICAN RAND South Africa
Region
Total
Mine
Operations Total
KDC
Operating Results
Ore milled/treated (000 tonnes)
December 2010 14,498 4,159
2,525
September 2010 14,510 4,059
2,627
Financial period 29,008 8,218
5,152
Yield (grams per tonne)
December 2010 2.1 3.6
3.8
September 2010 2.1 3.8
3.8
Financial period 2.1 3.7
3.8
Gold produced (kilograms)
December 2010 30,644 15,090
9,661
September 2010 31,042 15,458
10,058
Financial period 61,686 30,548
19,719
Gold sold (kilograms)
December 2010 30,449 15,090
9,661
September 2010 31,289 15,458
10,058
Financial period 61,738 30,548
19,719
Gold price received (Rand per kilogram)
December 2010 303,958 301,975
302,008
September 2010 289,329 287,929
288,010
Financial period 296,545 294,867
294,868
Total cash cost (Rand per kilogram)
December 2010 161,894 194,115
191,088
September 2010 164,898 195,627
190,863
Financial period 163,416 194,880
190,973
Notional cash expenditure (Rand per
kilogram)
December 2010 242,609 279,715
253,286
September 2010 238,158 284,118
261,334
Financial period 240,369 281,943
257,391
Operating costs (Rand per tonne)
December 2010 348 713
737
September 2010 357 758
742
Financial period 352 735
739
Financial Results (Rand million)
Revenue
December 2010 9,255.3 4,556.8
2,917.7
September 2010 9,052.8 4,450.8
2,896.8
Financial period 18,308.1 9,007.6
5,814.5
Operating costs, net
December 2010 (5,015.4) (2,964.1)
(1,861.0)
September 2010 (5,132.0) (3,075.1)
(1,948.7)
Financial period (10,147.4) (6,039.2)
(3,809.7)
- Operating costs
December 2010 (5,047.6) (2,964.1)
(1,861.0)
September 2010 (5,173.4) (3,075.1)
(1,948.7)
Financial period (10,221.0) (6,039.2)
(3,809.7)
- Gold inventory change
December 2010 32.2 -
-
September 2010 41.4 -
-
Financial period 73.6 -
-
Operating profit
December 2010 4,239.9 1,592.7
1,056.7
September 2010 3,920.8 1,375.7
948.1
Financial period 8,160.7 2,968.4
2,004.8
Amortisation of mining assets
December 2010 (1,291.5) (692.1)
(431.2)
September 2010 (1,406.8) (715.5)
(443.4)
Financial period (2,698.3) (1,407.6)
(874.6)
Net operating profit
December 2010 2,948.4 900.6
625.5
September 2010 2,514.0 660.2
504.7
Financial period 5,462.4 1,560.8
1,130.2
Other expenses
December 2010 (114.6) (51.5)
(32.3)
September 2010 (244.1) (136.2)
(65.1)
Financial period (358.7) (187.7)
(97.4)
Profit/(loss) before royalties and
taxation
December 2010 2,833.8 849.1
593.2
September 2010 2,269.9 524.0
439.6
Financial period 5,103.7 1,373.1
1,032.8
Royalties, mining and income taxation
December 2010 (566.0) 83.0
108.9
September 2010 (802.6) (152.8)
(99.6)
Financial period (1,368.6) (69.8)
9.3
- Normal taxation
December 2010 (598.1) (117.2)
(115.5)
September 2010 (411.5) (31.9)
(30.9)
Financial period (1,009.6) (149.1)
(146.4)
- Royalties
December 2010 (91.7) (54.1)
(46.0)
September 2010 (217.6) (46.4)
(38.6)
Financial period (309.3) (100.5)
(84.6)
- Deferred taxation
December 2010 123.8 254.3
270.4
September 2010 (173.5) (74.5)
(30.1)
Financial period (49.7) 179.8
240.3
Profit/(loss) before non-recurring items
December 2010 2,267.8 932.1
702.1
September 2010 1,467.3 371.2
340.0
Financial period 3,735.1 1,303.3
1,042.1
Non-recurring items
December 2010 (1,340.1) (1,268.4)
(878.3)
September 2010 (121.3) (111.2)
(87.7)
Financial period (1,461.4) (1,379.6)
(966.0)
Net profit/(loss)
December 2010 927.7 (336.3)
(176.2)
September 2010 1,346.0 260.0
252.3
Financial period 2,273.7 (76.3)
76.1
Net profit/(loss) excluding gains and
losses on foreign
exchange, financial instruments and
non-recurring
items
December 2010 2,217.9 900.1
680.7
September 2010 1,427.6 329.0
306.7
Financial period 3,645.5 1,229.1
987.4
Capital Expenditure
December 2010 (2,386.9) (1,256.8)
(586.0)
September 2010 (2,219.5) (1,316.8)
(679.8)
Financial period (4,606.4) (2,573.6)
(1,265.8)
South Africa
Region
Beatrix South
Deep
Operating Results
Ore milled/treated (000 tonnes)
December 2010 1,028
606
September 2010 937
495
Financial period 1,965
1,101
Yield (grams per tonne)
December 2010 3.0
3.9
September 2010 3.4
4.4
Financial period 3.2
4.1
Gold produced (kilograms)
December 2010 3,080
2,349
September 2010 3,202
2,198
Financial period 6,282
4,547
Gold sold (kilograms)
December 2010 3,080
2,349
September 2010 3,202
2,198
Financial period 6,282
4,547
Gold price received (Rand per kilogram)
December 2010 301,526
302,427
September 2010 287,633
287,989
Financial period 294,444
295,448
Total cash cost (Rand per kilogram)
December 2010 192,630
208,514
September 2010 191,599
223,294
Financial period 192,104
215,659
Notional cash expenditure (Rand per kilogram)
December 2010 248,799
428,948
September 2010 241,037
451,137
Financial period 244,842
439,675
Operating costs (Rand per tonne)
December 2010 590
820
September 2010 669
1,008
Financial period 628
905
Financial Results (Rand million)
Revenue
December 2010 928.7
710.4
September 2010 921.0
633.0
Financial period 1,849.7
1,343.4
Operating costs, net
December 2010 (606.3)
(496.8)
September 2010 (627.2)
(499.2)
Financial period (1,233.5)
(996.0)
- Operating costs
December 2010 (606.3)
(496.8)
September 2010 (627.2)
(499.2)
Financial period (1,233.5)
(996.0)
- Gold inventory change
December 2010 -
-
September 2010 -
-
Financial period -
-
Operating profit
December 2010 322.4
213.6
September 2010 293.8
133.8
Financial period 616.2
347.4
Amortisation of mining assets
December 2010 (121.8)
(139.1)
September 2010 (141.3)
(130.8)
Financial period (263.1)
(269.9)
Net operating profit
December 2010 200.6
74.5
September 2010 152.5
3.0
Financial period 353.1
77.5
Other expenses
December 2010 6.5
(25.7)
September 2010 (16.2)
(54.9)
Financial period (9.7)
(80.6)
Profit/(loss) before royalties and taxation
December 2010 207.1
48.8
September 2010 136.3
(51.9)
Financial period 343.4
(3.1)
Royalties, mining and income taxation
December 2010 4.1
(30.0)
September 2010 (72.2)
19.0
Financial period (68.1)
(11.0)
- Normal taxation
December 2010 (1.7)
-
September 2010 (1.0)
-
Financial period (2.7)
-
- Royalties
December 2010 (4.6)
(3.5)
September 2010 (4.6)
(3.2)
Financial period (9.2)
(6.7)
- Deferred taxation
December 2010 10.4
(26.5)
September 2010 (66.6)
22.2
Financial period (56.2)
(4.3)
Profit/(loss) before non-recurring items
December 2010 211.2
18.8
September 2010 64.1
(32.9)
Financial period 275.3
(14.1)
Non-recurring items
December 2010 (308.2)
(81.9)
September 2010 (23.0)
(0.5)
Financial period (331.2)
(82.4)
Net profit/(loss)
December 2010 (97.0)
(63.1)
September 2010 41.1
(33.4)
Financial period (55.9)
(96.5)
Net profit/(loss) excluding gains and losses on foreign
exchange, financial instruments and non-recurring
items
December 2010 202.8
16.6
September 2010 55.4
(33.1)
Financial period 258.2
(16.5)
Capital Expenditure
December 2010 (160.0)
(510.8)
September 2010 (144.6)
(492.4)
Financial period (304.6)
(1,003.2)
Operating and financial results
SOUTH AFRICAN RAND
West Africa Region
Ghana
Total Tarkwa
Damang
Operating Results
Ore milled/treated
(000 tonnes) December 2010 7,000 5,746
1,254
September 2010 6,987 5,750
1,237
Financial period 13,987 11,496
2,491
Yield (grams per
tonne) December 2010 1.1 1.0
1.5
September 2010 1.1 1.0
1.4
Financial period 1.1 1.0
1.5
Gold produced
(kilograms) December 2010 7,371 5,492
1,879
September 2010 7,527 5,769
1,758
Financial period 14,898 11,261
3,637
Gold sold (kilograms) December 2010 7,371 5,492
1,879
September 2010 7,527 5,769
1,758
Financial period 14,898 11,261
3,637
Gold price received
(Rand per kilogram) December 2010 304,830 304,534
305,695
September 2010 289,783 289,461
290,842
Financial period 297,228 296,812
298,515
Total cash cost (Rand
per kilogram) December 2010 120,174 115,004
135,285
September 2010 145,769 142,156
157,622
Financial period 133,105 128,914
146,082
Notional cash
expenditure (Rand per
kilogram) December 2010 224,515 198,653
300,106
September 2010 209,061 209,378
208,020
Financial period 216,707 204,147
255,595
Operating costs (Rand
per tonne) December 2010 138 123
207
September 2010 147 132
217
Financial period 143 128
212
Financial Results
(Rand million)
Revenue December 2010 2,246.9 1,672.5
574.4
September 2010 2,181.2 1,669.9
511.3
Financial period 4,428.1 3,342.4
1,085.7
Operating costs, net December 2010 (959.7) (695.4)
(264.3)
September 2010 (1,051.2) (791.4)
(259.8)
Financial period (2,010.9) (1,486.8)
(524.1)
- Operating costs December 2010 (965.8) (706.8)
(259.0)
September 2010 (1,028.7) (759.8)
(268.9)
Financial period (1,994.5) (1,466.6)
(527.9)
- Gold inventory
change December 2010 6.1 11.4
(5.3)
September 2010 (22.5) (31.6)
9.1
Financial period (16.4) (20.2)
3.8
Operating profit December 2010 1,287.2 977.1
310.1
September 2010 1,130.0 878.5
251.5
Financial period 2,417.2 1,855.6
561.6
Amortisation of
mining assets December 2010 (146.4) (90.2)
(56.2)
September 2010 (254.4) (220.2)
(34.2)
Financial period (400.8) (310.4)
(90.4)
Net operating profit December 2010 1,140.8 886.9
253.9
September 2010 875.6 658.3
217.3
Financial period 2,016.4 1,545.2
471.2
Other expenses December 2010 (34.7) (4.0)
(30.7)
September 2010 (24.1) (18.2)
(5.9)
Financial period (58.8) (22.2)
(36.6)
Profit before
royalties and
taxation December 2010 1,106.1 882.9
223.2
September 2010 851.5 640.1
211.4
Financial period 1,957.6 1,523.0
434.6
Royalties, mining and
income taxation December 2010 (313.0) (245.9)
(67.1)
September 2010 (327.8) (248.4)
(79.4)
Financial period (640.8) (494.3)
(146.5)
- Normal taxation December 2010 (311.0) (218.3)
(92.7)
September 2010 (213.1) (172.8)
(40.3)
Financial period (524.1) (391.1)
(133.0)
- Royalties December 2010 24.5 21.3
3.2
September 2010 (109.1) (83.5)
(25.6)
Financial period (84.6) (62.2)
(22.4)
- Deferred taxation December 2010 (26.5) (48.9)
22.4
September 2010 (5.6) 7.9
(13.5)
Financial period (32.1) (41.0)
8.9
Profit before
non-recurring items December 2010 793.1 637.0
156.1
September 2010 523.7 391.7
132.0
Financial period 1,316.8 1,028.7
288.1
Non-recurring items December 2010 (66.0) (58.9)
(7.1)
September 2010 (1.5) (1.5)
-
Financial period (67.5) (60.4)
(7.1)
Net profit December 2010 727.1 578.1
149.0
September 2010 522.2 390.2
132.0
Financial period 1,249.3 968.3
281.0
Net profit excluding
gains and losses on
foreign exchange,
financial instruments
and non-recurring
items
December 2010 777.8 620.9 156.9
September 2010 525.2 393.2 132.0
Financial period 1,303.0 1,014.1 288.9
Capital Expenditure December 2010 (689.1) (384.2)
(304.9)
September 2010 (544.9) (448.1)
(96.8)
Financial period (1,234.0) (832.3)
(401.7)
SOUTH AFRICAN RAND
South
America
Region
Peru
Cerro
Corona
Operating Results
Ore milled/treated (000 tonnes) December 2010
1,495
September 2010
1,607
Financial period
3,102
Yield (grams per tonne) December 2010
1.9
September 2010
2.0
Financial period
2.0
Gold produced (kilograms) December 2010
2,915
September 2010
3,291
Financial period
6,206
Gold sold (kilograms) December 2010
2,720
September 2010
3,538
Financial period
6,258
Gold price received (Rand per kilogram) December 2010
314,522
September 2010
296,269
Financial period
304,203
Total cash cost (Rand per kilogram) December 2010
99,853
September 2010
83,691
Financial period
90,716
Notional cash expenditure (Rand per kilogram) December 2010
144,700
September 2010
107,900
Financial period
125,185
Operating costs (Rand per tonne) December 2010
187
September 2010
170
Financial period
178
Financial Results (Rand million)
Revenue December 2010
855.5
September 2010
1,048.2
Financial period
1,903.7
Operating costs, net December 2010
(251.6)
September 2010
(289.9)
Financial period
(541.5)
- Operating costs December 2010
(279.8)
September 2010
(273.1)
Financial period
(552.9)
- Gold inventory change December 2010
28.2
September 2010
(16.8)
Financial period
11.4
Operating profit December 2010
603.9
September 2010
758.3
Financial period
1,362.2
Amortisation of mining assets December 2010
(97.3)
September 2010
(110.2)
Financial period
(207.5)
Net operating profit December 2010
506.6
September 2010
648.1
Financial period
1,154.7
Other expenses December 2010
(22.6)
September 2010
(63.5)
Financial period
(86.1)
Profit before royalties and taxation December 2010
484.0
September 2010
584.6
Financial period
1,068.6
Royalties, mining and income taxation December 2010
(195.7)
September 2010
(206.5)
Financial period
(402.2)
- Normal taxation December 2010
(169.9)
September 2010
(166.5)
Financial period
(336.4)
- Royalties December 2010
(23.8)
September 2010
(28.4)
Financial period
(52.2)
- Deferred taxation December 2010
(2.0)
September 2010
(11.6)
Financial period
(13.6)
Profit before non-recurring items December 2010
288.3
September 2010
378.1
Financial period
666.4
Non-recurring items December 2010
(0.3)
September 2010
-
Financial period
(0.3)
Net profit December 2010
288.0
September 2010
378.1
Financial period
666.1
Net profit excluding gains and losses on December 2010
288.2
foreign exchange, financial instruments September 2010
378.1
and non-recurring items Financial period
666.3
Capital Expenditure December 2010
(142.0)
September 2010
(82.0)
Financial period
(224.0)
SOUTH AFRICAN RAND
Australasia Region#
Australia*
Total St Ives
Agnew
Operating
Results
Ore
milled/treated
(000 tonnes) December 2010 1,844 1,636
208
September 2010 1,857 1,648
209
Financial period 3,701 3,284
417
Yield (grams
per tonne) December 2010 2.9 2.4
6.6
September 2010 2.6 2.2
5.3
Financial period 2.7 2.3
5.9
Gold produced
(kilograms) December 2010 5,268 3,889
1,379
September 2010 4,766 3,668
1,098
Financial period 10,034 7,557
2,477
Gold sold
(kilograms) December 2010 5,268 3,889
1,379
September 2010 4,766 3,668
1,098
Financial period 10,034 7,557
2,477
Gold price
received (Rand
per kilogram) December 2010 302,980 303,934
300,290
September 2010 287,998 287,759
288,798
Financial period 295,864 296,083
295,196
Total cash cost
(Rand per
kilogram) December 2010 160,004 168,192
136,911
September 2010 155,728 157,579
149,545
Financial period 157,973 163,041
142,511
Notional cash
expenditure
(Rand per
kilogram) December 2010 215,812 217,074
212,255
September 2010 224,990 224,782
225,683
Financial period 220,171 220,815
218,208
Operating costs
(Rand per
tonne) December 2010 454 398
901
September 2010 429 377
836
Financial period 442 387
869
Financial
Results (Rand
million)
Revenue December 2010 1,596.1 1,182.0
414.1
September 2010 1,372.6 1,055.5
317.1
Financial period 2,968.7 2,237.5
731.2
Operating
costs, net December 2010 (840.0) (646.7)
(193.3)
September 2010 (715.8) (551.6)
(164.2)
Financial period (1,555.8) (1,198.3)
(357.5)
- Operating
costs December 2010 (837.9) (650.4)
(187.5)
September 2010 (796.5) (621.7)
(174.8)
Financial period (1,634.4) (1,272.1)
(362.3)
- Gold
inventory
change December 2010 (2.1) 3.7
(5.8)
September 2010 80.7 70.1
10.6
Financial period 78.6 73.8
4.8
Operating profit December 2010 756.1 535.3
220.8
September 2010 656.8 503.9
152.9
Financial period 1,412.9 1,039.2
373.7
Amortisation of
mining assets December 2010 (355.7)
September 2010 (326.7)
Financial period (682.4)
Net operating
profit December 2010 400.4
September 2010 330.1
Financial period 730.5
Other expenses December 2010 (5.8)
September 2010 (20.3)
Financial period (26.1)
Profit before
royalties and
taxation December 2010 394.6
September 2010 309.8
Financial period 704.4
Royalties,
mining and
income taxation December 2010 (140.3)
September 2010 (115.5)
Financial period (255.8)
- Normal
taxation December 2010 -
September 2010 -
Financial period -
- Royalties December 2010 (38.3)
September 2010 (33.7)
Financial period (72.0)
- Deferred
taxation December 2010 (102.0)
September 2010 (81.8)
Financial period (183.8)
Profit before
non-recurring
items December 2010 254.3
September 2010 194.3
Financial period 448.6
Non-recurring
items December 2010 (5.4)
September 2010 (8.6)
Financial period (14.0)
Net profit December 2010 248.9
September 2010 185.7
Financial period 434.6
Net profit
excluding gains
and losses on
foreign
exchange,
financial
instruments
and December 2010 251.8
non-recurring September 2010 195.3
items Financial period 447.1
Capital
Expenditure December 2010 (299.0) (193.8)
(105.2)
September 2010 (275.8) (202.8)
(73.0)
Financial period (574.8) (396.6)
(178.2)
# As a significant portion of the acquisition price was allocated to
tenements of St Ives and Agnew based on endowment ounces and also as these
two Australian operations are entitled to transfer and then off-set tax
losses from one company to another, it is not meaningful to split the income
statement below operating profit.
Operating and financial results
UNITED STATES DOLLARS
Total
Mine
Operations
Operating Results
Ore milled/treated (000 tonnes) December 2010
14,498
September 2010
14,510
Financial period
29,008
Yield (ounces per tonne) December 2010
0.068
September 2010
0.069
Financial period
0.068
Gold produced (000 ounces) December 2010
985.2
September 2010
998.0
Financial period
1,983.3
Gold sold (000 ounces) December 2010
979.0
September 2010
1,006.0
Financial period
1,984.9
Gold price received (dollars per ounce) December 2010
1,366
September 2010
1,223
Financial period
1,292
Total cash cost (dollars per ounce) December 2010
728
September 2010
697
Financial period
712
Notional cash expenditure (dollars per ounce) December 2010
1,090
September 2010
1,006
Financial period
1,047
Operating costs (dollars per tonne) December 2010
50
September 2010
48
Financial period
49
Financial Results ($ million)
Revenue December 2010
1,334.2
September 2010
1,230.0
Financial period
2,564.2
Operating costs, net December 2010
(723.9)
September 2010
(697.3)
Financial period
(1,421.2)
- Operating costs December 2010
(728.6)
September 2010
(702.9)
Financial period
(1,431.5)
- Gold inventory change December 2010
4.7
September 2010
5.6
Financial period
10.3
Operating profit December 2010
610.3
September 2010
532.7
Financial period
1,143.0
Amortisation of mining assets December 2010
(186.8)
September 2010
(191.1)
Financial period
(377.9)
Net operating profit December 2010
423.5
September 2010
341.6
Financial period
765.0
Other expenses December 2010
(17.1)
September 2010
(33.2)
Financial period
(50.2)
Profit/(loss) before royalties and taxation December 2010
406.5
September 2010
308.4
Financial period
714.8
Royalties, mining and income taxation December 2010
(82.6)
September 2010
(109.0)
Financial period
(191.7)
- Normal taxation December 2010
(85.5)
September 2010
(55.9)
Financial period
(141.4)
- Royalties December 2010
(13.8)
September 2010
(29.6)
Financial period
(43.3)
- Deferred taxation December 2010
16.6
September 2010
(23.6)
Financial period
(7.0)
Profit/(loss) before non-recurring items December 2010
323.9
September 2010
199.4
Financial period
523.1
Non-recurring items December 2010
(188.2)
September 2010
(16.5)
Financial period
(204.7)
Net profit/(loss) December 2010
135.7
September 2010
182.9
Financial period
318.4
Net profit/(loss) excluding gains and losses
on foreign
exchange, financial instruments and December 2010
316.6
non-recurring September 2010
194.0
items Financial period
510.6
Capital Expenditure December 2010
(343.6)
September 2010
(301.6)
Financial period
(645.2)
South Africa Region
Total KDC Beatrix South
Deep
Operating
Results
Ore
milled/
treated
(000
tonnes) December 2010 4,159 2,525 1,028
606
September 2010 4,059 2,627 937
495
Financial period 8,218 5,152 1,965
1,101
Yield
(ounces
per tonne) December 2010 0.117 0.123 0.096
0.125
September 2010 0.122 0.123 0.110
0.143
Financial period 0.120 0.123 0.103
0.133
Gold
produced
(000
ounces) December 2010 485.2 310.6 99.0
75.5
September 2010 497.0 323.4 102.9
70.7
Financial period 982.2 634.0 202.0
146.2
Gold sold
(000
ounces) December 2010 485.2 310.6 99.0
75.5
September 2010 497.0 323.4 102.9
70.7
Financial period 982.2 634.0 202.0
146.2
Gold price
received
(dollars
per ounce) December 2010 1,357 1,357 1,355
1,359
September 2010 1,217 1,217 1,216
1,217
Financial period 1,285 1,285 1,283
1,287
Total cash
cost
(dollars
per ounce) December 2010 872 859 866
937
September 2010 827 807 810
944
Financial period 849 832 837
939
Notional
cash
expenditure
(dollars
per ounce) December 2010 1,257 1,138 1,118
1,928
September 2010 1,201 1,104 1,019
1,907
Financial period 1,228 1,121 1,067
1,915
Operating
costs
(dollars
per tonne) December 2010 103 107 85
118
September 2010 103 101 91
137
Financial period 103 104 88
127
Financial
Results
($ million)
Revenue December 2010 656.8 420.8 133.9
102.1
September 2010 604.7 393.6 125.1
86.0
Financial period 1,261.6 814.4 259.1
188.2
Operating
costs, net December 2010 (428.0) (268.8) (87.5)
(71.7)
September 2010 (417.8) (264.8) (85.2)
(67.8)
Financial period (845.8) (533.6) (172.8)
(139.5)
- Operating
costs December 2010 (428.0) (268.8) (87.5)
(71.7)
September 2010 (417.8) (264.8) (85.2)
(67.8)
Financial period (845.8) (533.6) (172.8)
(139.5)
- Gold
inventory
change December 2010 - - -
-
September 2010 - - -
-
Financial period - - -
-
Operating
profit December 2010 228.8 152.0 46.4
30.5
September 2010 186.9 128.8 39.9
18.2
Financial period 415.7 280.8 86.3
48.7
Amortisation
of mining
assets December 2010 (99.9) (62.2) (17.7)
(20.0)
September 2010 (97.2) (60.2) (19.2)
(17.8)
Financial period (197.1) (122.5) (36.8)
(37.8)
Net
operating
profit December 2010 128.9 89.7 28.7
10.4
September 2010 89.7 68.6 20.7
0.4
Financial period 218.6 158.3 49.5
10.9
Other
expenses December 2010 (7.8) (4.8) 0.8
(3.8)
September 2010 (18.5) (8.8) (2.2)
(7.5)
Financial period (26.3) (13.6) (1.4)
(11.3)
Profit/(loss)
before
royalties and
taxation December 2010 121.1 84.9 29.6
6.6
September 2010 71.2 59.7 18.5
(7.1)
Financial period 192.3 144.6 48.1
(0.4)
Royalties,
mining and
income
taxation December 2010 11.0 14.8 0.3
(4.1)
September 2010 (20.8) (13.5) (9.8)
2.6
Financial period (9.8) 1.3 (9.5)
(1.5)
- Normal
taxation December 2010 (16.5) (16.3) (0.2)
-
September 2010 (4.3) (4.2) (0.1)
-
Financial period (20.9) (20.5) (0.4)
-
- Royalties December 2010 (7.8) (6.6) (0.7)
(0.5)
September 2010 (6.3) (5.2) (0.6)
(0.4)
Financial period (14.1) (11.8) (1.3)
(0.9)
- Deferred
taxation December 2010 35.3 37.7 1.2
(3.6)
September 2010 (10.1) (4.1) (9.0)
3.0
Financial period 25.2 33.7 (7.9)
(0.6)
Profit/(loss)
before non-recurring
items December 2010 132.1 99.8 29.8
2.5
September 2010 50.4 46.2 8.7
(4.5)
Financial period 182.5 146.0 38.6
(2.0)
Non-recurring
items December 2010 (178.1) (123.4) (43.3)
(11.5)
September 2010 (15.1) (11.9) (3.1)
(0.1)
Financial period (193.2) (135.3) (46.4)
(11.5)
Net
profit/(loss)
December 2010 (46.0) (23.6) (13.4)
(9.0)
September 2010 35.3 34.3 5.6
(4.5)
Financial period (10.7) 10.7 (7.8)
(13.5)
Net
profit/(loss)
excluding
gains and
losses on
foreign
exchange,
financial
instruments
and non- December 2010 127.4 96.6 28.6
2.2
recurring September 2010 44.7 41.7 7.5
(4.5)
items Financial period 172.1 138.3 36.2
(2.3)
Capital
Expenditure December 2010 (181.5) (84.9) (23.0)
(73.6)
September 2010 (178.9) (92.4) (19.6)
(66.9)
Financial period (360.4) (177.3) (42.7)
(140.5)
Average exchange rates were US$1 = R6.92 and US$1 = R7.36 for the December
2010 and the September 2010 quarters respectively.
The Australian dollar exchange rates were A$1 = R6.81 and A$1 = R6.59 for the
December 2010 and the September 2010 quarters respectively.
Operating and financial results
UNITED STATES DOLLARS
West Africa Region
Ghana
Total Tarkwa
Damang
Operating Results
Ore milled/treated
(000 tonnes) December 2010 7,000 5,746
1,254
September 2010 6,987 5,750
1,237
Financial period 13,987 11,496
2,491
Yield (ounces per tonne) December 2010 0.034 0.031
0.048
September 2010 0.035 0.032
0.046
Financial period 0.034 0.031
0.047
Gold produced (000 ounces) December 2010 237.0 176.6
60.4
September 2010 242.0 185.5
56.5
Financial period 478.9 362.0
116.9
Gold sold (000 ounces) December 2010 237.0 176.6
60.4
September 2010 242.0 185.5
56.5
Financial period 478.9 362.0
116.9
Gold price received December 2010 1,370 1,369
1,374
(dollars per ounce) September 2010 1,225 1,223
1,229
Financial period 1,295 1,293
1,300
Total cash cost
(dollars per ounce) December 2010 540 517
608
September 2010 616 601
666
Financial period 580 562
636
Notional cash expenditure
(dollars per ounce) December 2010 1,009 893
1,349
September 2010 883 885
879
Financial period 944 889
1,113
Operating costs December 2010 20 18
30
(dollars per tonne) September 2010 20 18
30
Financial period 20 18
30
Financial Results ($
million)
Revenue December 2010 323.8 241.2
82.6
September 2010 296.4 226.9
69.5
Financial period 620.2 468.1
152.1
Operating costs, net December 2010 (138.8) (100.7)
(38.1)
September 2010 (142.8) (107.5)
(35.3)
Financial period (281.6) (208.2)
(73.4)
- Operating costs December 2010 (139.6) (102.2)
(37.4)
September 2010 (139.8) (103.2)
(36.5)
Financial period (279.3) (205.4)
(73.9)
- Gold inventory change December 2010 0.8 1.5
(0.7)
September 2010 (3.1) (4.3)
1.2
Financial period (2.3) (2.8)
0.5
Operating profit December 2010 185.0 140.5
44.5
September 2010 153.5 119.4
34.2
Financial period 338.5 259.9
78.7
Amortisation of mining December 2010 (21.6) (13.6)
(8.0)
assets September 2010 (34.6) (29.9)
(4.6)
Financial period (56.1) (43.5)
(12.7)
Net operating profit December 2010 163.4 127.0
36.5
September 2010 119.0 89.4
29.5
Financial period 282.4 216.4
66.0
Other expenses December 2010 (5.0) (0.6)
(4.3)
September 2010 (3.3) (2.5)
(0.8)
Financial period (8.2) (3.1)
(5.1)
Profit before royalties andDecember 2010 158.5 126.3
32.1
taxation September 2010 115.7 87.0
28.7
Financial period 274.2 213.3
60.9
Royalties, mining and December 2010 (45.2) (35.5)
(9.7)
income taxation September 2010 (44.5) (33.8)
(10.8)
Financial period (89.7) (69.2)
(20.5)
- Normal taxation December 2010 (44.4) (31.3)
(13.2)
September 2010 (29.0) (23.5)
(5.5)
Financial period (73.4) (54.8)
(18.6)
- Royalties December 2010 3.0 2.6
0.3
September 2010 (14.8) (11.3)
(3.5)
Financial period (11.8) (8.7)
(3.1)
- Deferred taxation December 2010 (3.7) (6.8)
3.1
September 2010 (0.8) 1.1
(1.8)
Financial period (4.5) (5.7)
1.2
Profit before December 2010 113.3 90.9
22.4
non-recurring items September 2010 71.2 53.2
17.9
Financial period 184.4 144.1
40.4
Non-recurring items December 2010 (9.2) (8.3)
(1.0)
September 2010 (0.2) (0.2)
-
Financial period (9.5) (8.5)
(1.0)
Net profit December 2010 104.0 82.6
21.4
September 2010 71.0 53.0
17.9
Financial period 175.0 135.6
39.4
Net profit excluding gains
and losses on foreign December 2010 111.1 88.6
22.5
exchange, September 2010 71.4 53.4
17.9
financial instruments and Financial period 182.5 142.0
40.5
non-recurring items
Capital Expenditure December 2010 (98.8) (55.7)
(43.1)
September 2010 (74.0) (60.9)
(13.2)
Financial period (172.8) (116.6)
(56.3)
South
America
Region
Peru
Cerro
Corona
Operating Results
Ore milled/treated
(000 tonnes) December 2010
1,495
September 2010
1,607
Financial period
3,102
Yield (ounces per tonne) December 2010
0.063
September 2010
0.066
Financial period
0.064
Gold produced (000 ounces) December 2010
93.7
September 2010
105.8
Financial period
199.5
Gold sold (000 ounces) December 2010
87.5
September 2010
113.7
Financial period
201.2
Gold price received December 2010
1,414
(dollars per ounce) September 2010
1,252
Financial period
1,325
Total cash cost
(dollars per ounce) December 2010
449
September 2010
354
Financial period
395
Notional cash expenditure
(dollars per ounce) December 2010
650
September 2010
456
Financial period
545
Operating costs December 2010
27
(dollars per tonne) September 2010
23
Financial period
25
Financial Results ($ million)
Revenue December 2010
124.2
September 2010
142.4
Financial period
266.6
Operating costs, net December 2010
(36.5)
September 2010
(39.4)
Financial period
(75.8)
- Operating costs December 2010
(40.3)
September 2010
(37.1)
Financial period
(77.4)
- Gold inventory change December 2010
3.9
September 2010
(2.3)
Financial period
1.6
Operating profit December 2010
87.8
September 2010
103.0
Financial period
190.8
Amortisation of mining December 2010
(14.1)
assets September 2010
(15.0)
Financial period
(29.1)
Net operating profit December 2010
73.7
September 2010
88.1
Financial period
161.7
Other expenses December 2010
(3.4)
September 2010
(8.6)
Financial period
(12.1)
Profit before royalties and December 2010
70.2
taxation September 2010
79.4
Financial period
149.7
Royalties, mining and December 2010
(28.3)
income taxation September 2010
(28.1)
Financial period
(56.3)
- Normal taxation December 2010
(24.5)
September 2010
(22.6)
Financial period
(47.1)
- Royalties December 2010
(3.5)
September 2010
(3.9)
Financial period
(7.3)
- Deferred taxation December 2010
(0.3)
September 2010
(1.6)
Financial period
(1.9)
Profit before December 2010
42.0
non-recurring items September 2010
51.4
Financial period
93.3
Non-recurring items December 2010
-
September 2010
-
Financial period
-
Net profit December 2010
41.9
September 2010
51.4
Financial period
93.3
Net profit excluding gains and December 2010
41.9
losses on foreign exchange, September 2010
51.4
financial instruments and Financial period
93.3
non-recurring items
Capital Expenditure December 2010
(20.2)
September 2010
(11.1)
Financial period
(31.4)
Australasia Region
Australia#
Total St Ives
Agnew
Operating Results
Ore milled/treated
(000 tonnes) December 2010 1,844 1,636
208
September 2010 1,857 1,648
209
Financial period 3,701 3,284
417
Yield (ounces per tonne) December 2010 0.092 0.076
0.213
September 2010 0.083 0.072
0.169
Financial period 0.087 0.074
0.191
Gold produced (000 ounces) December 2010 169.4 125.1
44.3
September 2010 153.2 117.9
35.3
Financial period 322.6 243.0
79.6
Gold sold (000 ounces) December 2010 169.4 125.1
44.3
September 2010 153.2 117.9
35.3
Financial period 322.6 243.0
79.6
Gold price received December 2010 1,362 1,366
1,350
(dollars per ounce) September 2010 1,217 1,216
1,220
Financial period 1,289 1,290
1,286
Total cash cost
(dollars per ounce) December 2010 719 756
615
September 2010 658 666
632
Financial period 688 710
621
Notional cash expenditure
(dollars per ounce) December 2010 970 976
954
September 2010 951 950
954
Financial period 959 962
951
Operating costs December 2010 66 57
130
(dollars per tonne) September 2010 58 51
114
Financial period 62 54
122
Financial Results ($
million)
Revenue December 2010 229.3 170.0
59.3
September 2010 186.5 143.4
43.1
Financial period 415.8 313.4
102.4
Operating costs, net December 2010 (120.6) (92.9)
(27.8)
September 2010 (97.3) (74.9)
(22.3)
Financial period (217.9) (167.8)
(50.1)
- Operating costs December 2010 (120.7) (93.7)
(27.0)
September 2010 (108.2) (84.5)
(23.8)
Financial period (228.9) (178.2)
(50.7)
- Gold inventory change December 2010 - 0.8
(0.8)
September 2010 11.0 9.5
1.4
Financial period 11.0 10.3
0.7
Operating profit December 2010 108.6 77.1
31.6
September 2010 89.2 68.5
20.8
Financial period 197.9 145.5
52.3
Amortisation of mining December 2010 (51.2)
assets September 2010 (44.4)
Financial period (95.6)
Net operating profit December 2010 57.5
September 2010 44.9
Financial period 102.3
Other expenses December 2010 (0.9)
September 2010 (2.8)
Financial period (3.7)
Profit before royalties December 2010 56.6
and taxation September 2010 42.1
Financial period 98.7
Royalties, mining and December 2010 (20.1)
income taxation September 2010 (15.7)
Financial period (35.8)
- Normal taxation December 2010 -
September 2010 -
Financial period -
- Royalties December 2010 (5.5)
September 2010 (4.6)
Financial period (10.1)
- Deferred taxation December 2010 (14.6)
September 2010 (11.1)
Financial period (25.7)
Profit before December 2010 35.6
non-recurring items September 2010 26.4
Financial period 62.8
Non-recurring items December 2010 (0.8)
September 2010 (1.2)
Financial period (2.0)
Net profit December 2010 36.9
September 2010 25.2
Financial period 60.9
Net profit excluding gains
and December 2010 36.1
losses on foreign exchange,September 2010 26.5
financial instruments and Financial period 62.6
non-recurring items
Capital Expenditure December 2010 (43.0) (28.0)
(15.0)
September 2010 (37.5) (27.6)
(9.9)
Financial period (80.5) (55.5)
(25.0)
AUSTRALIAN DOLLARS
Australasia
Region#
Total St Ives
Agnew
Operating Results
Ore milled/treated 1,844 1,636
208
(000 tonnes) December 2010 1,857 1,648
209
September 2010
Financial period 3,701 3,284
417
Yield (ounces per tonne) December 2010 0.092 0.076
0.213
September 2010 0.083 0.072
0.169
Financial period 0.087 0.074
0.191
Gold produced (000 ounces) December 2010 169.4 125.1
44.3
September 2010 153.2 117.9
35.3
Financial period 322.6 243.0
79.6
Gold sold (000 ounces) December 2010 169.4 125.1
44.3
September 2010 153.2 117.9
35.3
Financial period 322.6 243.0
79.6
Gold price received December 2010 1,384 1,388
1,372
(dollars per ounce) September 2010 1,359 1,358
1,363
Financial period 1,373 1,375
1,370
Total cash cost
(dollars per ounce) December 2010 731 768
625
September 2010 735 744
706
Financial period 733 757
662
Notional cash expenditure
(dollars per ounce) December 2010 986 991
969
September 2010 1,062 1,061
1,065
Financial period 1,022 1,025
1,013
Operating costs December 2010 67 58
132
(dollars per tonne) September 2010 65 57
127
Financial period 66 58
130
Financial Results ($
million)
Revenue December 2010 234.8 173.8
61.0
September 2010 208.3 160.2
48.1
Financial period 443.1 334.0
109.1
Operating costs, net December 2010 (123.6) (95.1)
(28.4)
September 2010 (108.6) (83.7)
(24.9)
Financial period (232.2) (178.9)
(53.4)
- Operating costs December 2010 (123.1) (95.5)
(27.5)
September 2010 (120.9) (94.3)
(26.5)
Financial period (243.9) (189.9)
(54.1)
- Gold inventory change December 2010 (0.5) 0.4
(0.9)
September 2010 12.2 10.6
1.6
Financial period 11.7 11.0
0.7
Operating profit December 2010 111.2 78.6
32.6
September 2010 99.7 76.5
23.2
Financial period 210.9 155.1
55.8
Amortisation of mining December 2010 (52.3)
assets September 2010 (49.6)
Financial period (101.9)
Net operating profit December 2010 58.9
September 2010 50.1
Financial period 109.0
Other expenses December 2010 (0.8)
September 2010 (3.1)
Financial period (3.9)
Profit before royalties December 2010 58.1
and taxation September 2010 47.0
Financial period 105.1
Royalties, mining and December 2010 (20.7)
income taxation September 2010 (17.5)
Financial period (38.2)
- Normal taxation December 2010 -
September 2010 -
Financial period -
- Royalties December 2010 (5.6)
September 2010 (5.1)
Financial period (10.7)
- Deferred taxation December 2010 (15.0)
September 2010 (12.4)
Financial period (27.4)
Profit before December 2010 37.5
non-recurring items September 2010 29.5
Financial period 67.0
Non-recurring items December 2010 (0.8)
September 2010 (1.3)
Financial period (2.1)
Net profit December 2010 36.7
September 2010 28.2
Financial period 64.8
Net profit excluding gains
and losses on foreign
exchange, financial December 2010 37.1
instruments and September 2010 29.6
non-recurring items Financial period 66.7
Capital Expenditure December 2010 (43.9) (28.4)
(15.5)
September 2010 (41.9) (30.8)
(11.1)
Financial period (85.8) (59.2)
(26.6)
# As a significant portion of the acquisition price was allocated to
tenements of St Ives and Agnew on endowment ounces and also as these two
Australian operations are entitled to transfer and then off-set tax losses
from one company to another, it is not meaningful to split the income
statement below operating profit.
Figures may not add as they are rounded independently.
Total cash cost
Gold Industry Standards Basis
Figures are in South African rand millions unless otherwise stated
Total
Mine
Operations
Operating costs(1) Dec 2010
(5,047.6)
Sep 2010
(5,173.4)
Financial period
(10,221.0)
Gold-in-process and Dec 2010
21.2
inventory change* Sep 2010
25.3
Financial period
46.5
Less: Dec 2010
(28.8)
Rehabilitation costs Sep 2010
(28.6)
Financial period
(57.4)
Production taxes Dec 2010
(8.3)
Sep 2010
(8.4)
Financial period
(16.7)
General and admin Dec 2010
(159.8)
Sep 2010
(177.6)
Financial period
(337.4)
Cash operating costs Dec 2010
(4,829.5)
Sep 2010
(4,933.5)
Financial period
(9,763.0)
Plus: Dec 2010
(8.3)
Production taxes Sep 2010
(8.4)
Financial period
(16.7)
Royalties Dec 2010
(91.7)
Sep 2010
(217.6)
Financial period
(309.3)
TOTAL CASH COST(2) Dec 2010
(4,929.5)
Sep 2010
(5,159.5)
Financial period
(10,089.0)
Plus: Dec 2010
(1,280.5)
Amortisation* Sep 2010
(1,390.7)
Financial period
(2,671.2)
Rehabilitation Dec 2010
(28.8)
Sep 2010
(28.6)
Financial period
(57.4)
TOTAL PRODUCTION Dec 2010
(6,238.8)
COST(3) Sep 2010
(6,578.8)
Financial period
(12,817.6)
Gold sold Dec 2010
979.0
- thousand ounces Sep 2010
1,006.0
Financial period
1,984.9
TOTAL CASH COST Dec 2010
728
- US$/oz Sep 2010
697
Financial period
712
TOTAL CASH COST Dec 2010
161,894
- R/kg Sep 2010
164,898
Financial period
163,416
TOTAL PRODUCTION Dec 2010
921
COST - US$/oz Sep 2010
889
Financial period
904
TOTAL PRODUCTION Dec 2010
204,893
COST - R/kg Sep 2010
210,259
Financial period
207,613
South Africa Region
South
Total KDC Beatrix
Deep#
Operating
costs(1) Dec 2010 (2,964.1) (1,861.0) (606.3)
(496.8)
Sep 2010 (3,075.1) (1,948.7) (627.2)
(499.2)
Financial period (6,039.2) (3,809.7) (1,233.5)
(996.0)
Gold-in-process
and
inventory Dec 2010 - - -
-
change* Sep 2010 - - -
-
Financial period - - -
-
Less:
Rehabilitation Dec 2010 (23.5) (16.7) (4.5)
(2.3)
costs Sep 2010 (23.4) (16.7) (4.4)
(2.3)
Financial period (46.9) (33.4) (8.9)
(4.6)
Production
taxes Dec 2010 (8.3) (5.7) (1.1)
(1.5)
Sep 2010 (8.4) (5.5) (1.3)
(1.6)
Financial period (16.7) (11.2) (2.4)
(3.1)
General and
admin Dec 2010 (65.5) (44.2) (13.1)
(8.2)
Sep 2010 (74.1) (50.9) (13.9)
(9.3)
Financial period (139.6) (95.1) (27.0)
(17.5)
Cash operating
costs Dec 2010 (2,866.8) (1,794.4) (587.6)
(484.8)
Sep 2010 (2,969.2) (1,875.6) (607.6)
(486.0)
Financial period (5,836.0) (3,670.0) (1,195.2)
(970.8)
Plus:
Production Dec 2010 (8.3) (5.7) (1.1)
(1.5)
taxes Sep 2010 (8.4) (5.5) (1.3)
(1.6)
Financial period (16.7) (11.2) (2.4)
(3.1)
Royalties Dec 2010 (54.1) (46.0) (4.6)
(3.5)
Sep 2010 (46.4) (38.6) (4.6)
(3.2)
Financial period (100.5) (84.6) (9.2)
(6.7)
TOTAL
CASH
COST(2) Dec 2010 (2,929.2) (1,846.1) (593.3)
(489.8)
Sep 2010 (3,024.0) (1,919.7) (613.5)
(490.8)
Financial period (5,953.2) (3,765.8) (1,206.8)
(980.6)
Plus: Dec 2010 (692.1) (431.2) (121.8)
(139.1)
Amortisation* Sep 2010 (715.5) (443.4) (141.3)
(130.8)
Financial period (1,407.6) (874.6) (263.1)
(269.9)
Rehabili-
tation Dec 2010 (23.5) (16.7) (4.5)
(2.3)
Sep 2010 (23.4) (16.7) (4.4)
(2.3)
Financial period (46.9) (33.4) (8.9)
(4.6)
TOTAL
PRODU
CTION Dec 2010 (3,644.8) (2,294.0) (719.6)
(631.2)
COST(3) Sep 2010 (3,762.9) (2,379.8) (759.2)
(623.9)
Financial period (7,407.7) (4,673.8) (1,478.8)
(1,255.1)
Gold
sold
- thousand Dec 2010 485.2 310.6 99.0
75.5
ounces Sep 2010 497.0 323.4 102.9
70.7
Financial period 982.1 634.0 202.0
146.2
TOTAL
CASH
COST Dec 2010 872 859 866
937
- US$/oz Sep 2010 827 807 810
944
Financial period 849 832 837
939
TOTAL
CASH
COST Dec 2010 194,115 191,088 192,630
208,514
- R/kg Sep 2010 195,627 190,863 191,599
223,294
Financial period 194,880 190,973 192,104
215,659
TOTAL
PRODUCTION
COST Dec 2010 1,086 1,067 1,050
1,208
- US$/oz Sep 2010 1,029 1,000 1,002
1,200
Financial period 1,056 1,033 1,025
1,202
TOTAL
PRODUCTION
COST Dec 2010 241,537 237,450 233,636
268,710
- R/kg Sep 2010 243,427 236,608 237,102
283,849
Financial period 242,494 237,020 235,403
276,028
West Africa Region
Ghana
Total Tarkwa
Damang
Operating costs(1) Dec 2010 (965.8) (706.8)
(259.0)
Sep 2010 (1,028.7) (759.8)
(268.9)
Financial period (1,994.5) (1,466.6)
(527.9)
Gold-in-process and Dec 2010 3.2 7.4
(4.2)
inventory change* Sep 2010 (22.1) (30.1)
8.0
Financial period (18.9) (22.7)
3.8
Less: Dec 2010 (1.1) (0.9)
(0.2)
Rehabilitation costs Sep 2010 (1.3) (1.1)
(0.2)
Financial period (2.4) (2.0)
(0.4)
Production taxes Dec 2010 - -
-
Sep 2010 - -
-
Financial period - -
-
General and admin Dec 2010 (51.2) (45.6)
(5.6)
Sep 2010 (61.4) (52.2)
(9.2)
Financial period (112.6) (97.8)
(14.8)
Cash operating costs Dec 2010 (910.3) (652.9)
(257.4)
Sep 2010 (988.1) (736.6)
(251.5)
Financial period (1,898.4) (1,389.5)
(508.9)
Plus: Dec 2010 - -
-
Production taxes Sep 2010 - -
-
Financial period - -
-
Royalties Dec 2010 24.5 21.3
3.2
Sep 2010 (109.1) (83.5)
(25.6)
Financial period (84.6) (62.2)
(22.4)
TOTAL CASH COST(2) Dec 2010 (885.8) (631.6)
(254.2)
Sep 2010 (1,097.2) (820.1)
(277.1)
Financial period (1,983.0) (1,451.7)
(531.3)
Plus: Dec 2010 (143.5) (86.2)
(57.3)
Amortisation* Sep 2010 (254.8) (221.7)
(33.1)
Financial period (398.3) (307.9)
(90.4)
Rehabilitation Dec 2010 (1.1) (0.9)
(0.2)
Sep 2010 (1.3) (1.1)
(0.2)
Financial period (2.4) (2.0)
(0.4)
TOTAL PRODUCTION Dec 2010 (1,030.4) (718.7)
(311.7)
COST(3) Sep 2010 (1,353.3) (1,042.9)
(310.4)
Financial period (2,383.7) (1,761.6)
(622.1)
Gold sold Dec 2010 237.0 176.6
60.4
- thousand ounces Sep 2010 242.0 185.5
56.5
Financial period 479.0 362.0
116.9
TOTAL CASH COST Dec 2010 540 517
608
- US$/oz Sep 2010 616 601
666
Financial period 580 562
636
TOTAL CASH COST Dec 2010 120,174 115,004
135,285
- R/kg Sep 2010 145,769 142,156
157,622
Financial period 133,105 128,914
146,082
TOTAL PRODUCTION Dec 2010 628 588
746
COST - US$/oz Sep 2010 760 764
746
Financial period 697 681
745
TOTAL PRODUCTION Dec 2010 139,791 130,863
165,886
COST - R/kg Sep 2010 179,793 180,777
176,564
Financial period 160,001 156,434
171,048
South
America
Region
Peru
Cerro
Corona
Operating costs(1) Dec 2010
(279.8)
Sep 2010
(273.1)
Financial period
(552.9)
Gold-in-process and Dec 2010
19.8
inventory change* Sep 2010
(11.9)
Financial period
7.9
Less: Dec 2010
(0.9)
Rehabilitation costs Sep 2010
(0.9)
Financial period
(1.8)
Production taxes Dec 2010
-
Sep 2010
-
Financial period
-
General and admin Dec 2010
(11.3)
Sep 2010
(16.4)
Financial period
(27.7)
Cash operating costs Dec 2010
(247.8)
Sep 2010
(267.7)
Financial period
(515.5)
Plus: Dec 2010
-
Production taxes Sep 2010
-
Financial period
-
Royalties Dec 2010
(23.8)
Sep 2010
(28.4)
Financial period
(52.2)
TOTAL CASH COST(2) Dec 2010
(271.6)
Sep 2010
(296.1)
Financial period
(567.7)
Plus: Dec 2010
(88.9)
Amortisation* Sep 2010
(115.1)
Financial period
(204.0)
Rehabilitation Dec 2010
(0.9)
Sep 2010
(0.9)
Financial period
(1.8)
TOTAL PRODUCTION Dec 2010
(361.4)
COST(3) Sep 2010
(412.1)
Financial period
(773.5)
Gold sold Dec 2010
87.5
- thousand ounces Sep 2010
113.7
Financial period
201.2
TOTAL CASH COST Dec 2010
449
- US$/oz Sep 2010
354
Financial period
395
TOTAL CASH COST Dec 2010
99,853
- R/kg Sep 2010
83,691
Financial period
90,716
TOTAL PRODUCTION Dec 2010
597
COST - US$/oz Sep 2010
492
Financial period
538
TOTAL PRODUCTION Dec 2010
132,868
COST - R/kg Sep 2010
116,478
Financial period
123,602
Australasia Region
Australia
Total St Ives
Agnew
Operating costs(1) Dec 2010 (837.9) (650.4)
(187.5)
Sep 2010 (796.5) (621.7)
(174.8)
Financial period (1,634.4) (1,272.1)
(362.3)
Gold-in-process and Dec 2010 (1.8) 2.7
(4.5)
inventory change* Sep 2010 59.3 51.4
7.9
Financial period 57.5 54.1
3.4
Less: Dec 2010 (3.3) (2.7)
(0.6)
Rehabilitation costs Sep 2010 (3.0) (2.5)
(0.5)
Financial period (6.3) (5.2)
(1.1)
Production taxes Dec 2010 - -
-
Sep 2010 - -
-
Financial period - -
-
General and admin Dec 2010 (31.8) (19.7)
(12.1)
Sep 2010 (25.7) (15.5)
(10.2)
Financial period (57.5) (35.2)
(22.3)
Cash operating costs Dec 2010 (804.6) (625.3)
(179.3)
Sep 2010 (708.5) (552.3)
(156.2)
Financial period (1,513.1) (1,177.6)
(335.5)
Plus: Dec 2010 - -
-
Production taxes Sep 2010 - -
-
Financial period - -
-
Royalties Dec 2010 (38.3) (28.8)
(9.5)
Sep 2010 (33.7) (25.7)
(8.0)
Financial period (72.0) (54.5)
(17.5)
TOTAL CASH COST(2) Dec 2010 (842.9) (654.1)
(188.8)
Sep 2010 (742.2) (578.0)
(164.2)
Financial period (1,585.1) (1,232.1)
(353.0)
Plus: Dec 2010 (356.0)
Amortisation* Sep 2010 (305.3)
Financial period (661.3)
Rehabilitation Dec 2010 (3.3)
Sep 2010 (3.0)
Financial period (6.3)
TOTAL PRODUCTION Dec 2010 (1,202.2)
COST(3) Sep 2010 (1,050.5)
Financial period (2,252.7)
Gold sold Dec 2010 169.4 125.1
44.3
- thousand ounces Sep 2010 153.2 117.9
35.3
Financial period 322.6 243.0
79.6
TOTAL CASH COST Dec 2010 719 756
615
- US$/oz Sep 2010 658 666
632
Financial period 688 710
621
TOTAL CASH COST Dec 2010 160,004 168,192
136,911
- R/kg Sep 2010 155,728 157,579
149,545
Financial period 157,973 163,041
142,511
TOTAL PRODUCTION Dec 2010 1,026
COST - US$/oz Sep 2010 931
Financial period 978
TOTAL PRODUCTION Dec 2010 228,208
COST - R/kg Sep 2010 220,415
Financial period 224,507
DEFINITIONS
Total cash cost and Total production cost are calculated in accordance with
the Gold Institute Industry standard.
(1) Operating costs - All gold mining related costs before
amortisation/depreciation, changes in gold inventory, taxation and non-
recurring items.
(2) Total cash cost - Operating costs less off-mine costs, which include
general and administration costs, as detailed in the table above.
(3) Total production cost - Total cash cost plus amortisation/depreciation
and rehabilitation provisions, as detailed in the table above.
* Adjusted for amortisation/depreciation (non-cash item) excluded from gold-
in-process change.
Average exchange rates were US$1 = R6.92 and US$1 = R7.36 for the December
2010 and the September 2010 quarters respectively. Six months to December
2010 US$ = R7.14 and A$ = 6.70.
Capital expenditure
Figures are in South African rand millions unless otherwise stated
Total
Mine
Operations
Sustaining capital December 2010
(1,763.9)
September 2010
(1,602.5)
Financial period
(3,366.4)
Project capital December 2010
(510.8)
September 2010
(492.4)
Financial period
(1,003.2)
Uranium capital December 2010
(4.1)
September 2010
(28.3)
Financial period
(32.4)
Brownfields December 2010
(108.1)
exploration September 2010
(96.3)
Financial period
(204.4)
Total capital December 2010
(2,386.9)
expenditure September 2010
(2,219.5)
Financial period
(4,606.4)
South Africa Region
South
Total KDC Beatrix
Deep#
Sustaining
capital December 2010 (741.9) (581.9) (160.0)
-
September 2010 (796.1) (651.5) (144.6)
-
Financial period (1,538.0) (1,233.4) (304.6)
-
Project
capital December 2010 (510.8) - -
(510.8)
September 2010 (492.4) - -
(492.4)
Financial period (1,003.2) - -
(1,003.2)
Uranium
capital December 2010 (4.1) (4.1) -
-
September 2010 (28.3) (28.3) -
-
Financial period (32.4) (32.4) -
-
Brownfields December 2010 - - -
-
exploration September 2010 - - -
-
Financial period - - -
-
Total
capital December 2010 (1,256.8) (586.0) (160.0)
(510.8)
expenditure September 2010 (1,316.8) (679.8) (144.6)
(492.4)
Financial period (2,573.6) (1,265.8) (304.6)
(1,003.2)
West Africa Region
Ghana
Total Tarkwa
Damang
Sustaining capital December 2010 (670.8) (384.2)
(286.6)
September 2010 (519.7) (448.1)
(71.6)
Financial period (1,190.5) (832.3)
(358.2)
Project capital December 2010 - -
-
September 2010 - -
-
Financial period - -
-
Uranium capital December 2010 - -
-
September 2010 - -
-
Financial period - -
-
Brownfields December 2010 (18.3) -
(18.3)
exploration September 2010 (25.2) -
(25.2)
Financial period (43.5) -
(43.5)
Total capital December 2010 (689.1) (384.2)
(304.9)
expenditure September 2010 (544.9) (448.1)
(96.8)
Financial period (1,234.0) (832.3)
(401.7)
South
America
Region
Peru
Cerro
Corona
Sustaining capital December 2010
(142.0)
September 2010
(82.0)
Financial period
(224.0)
Project capital December 2010
-
September 2010
-
Financial period
-
Uranium capital December 2010
-
September 2010
-
Financial period
-
Brownfields December 2010
-
exploration September 2010
-
Financial period
-
Total capital December 2010
(142.0)
expenditure September 2010
(82.0)
Financial period
(224.0)
Australasia Region
Australia
Total St Ives
Agnew
Sustaining capital December 2010 (209.2) (127.5)
(81.7)
September 2010 (204.7) (148.6)
(56.1)
Financial period (413.9) (276.1)
(137.8)
Project capital December 2010 - -
-
September 2010 - -
-
Financial period - -
-
Uranium capital December 2010 - -
-
September 2010 - -
-
Financial period - -
-
Brownfields December 2010 (89.8) (66.3)
(23.5)
exploration September 2010 (71.1) (54.2)
(16.9)
Financial period (160.9) (120.5)
(40.4)
Total capital December 2010 (299.0) (193.8)
(105.2)
expenditure September 2010 (275.8) (202.8)
(73.0)
Financial period (574.8) (396.6)
(178.2)
Notional cash expenditure##
Figures are in South African rand millions unless otherwise stated
Total
Group
Operating costs December 2010
(5,047.6)
September 2010
(5,173.4)
Financial period
(10,221.0)
Capital December 2010
(2,414.4)
expenditure September 2010
(2,225.4)
Financial period
(4,639.8)
Notional cash December 2010
243,506
expenditure September 2010
238,348
- R/kg Financial period
240,910
Notional cash December 2010
1,094
expenditure September 2010
1,007
- US$/oz Financial period
1,049
South Africa Region
South
Total KDC Beatrix Deep#
Operating costs December 2010 (2,964.1) (1,861.0) (606.3)
(496.8)
September 2010 (3,075.1) (1,948.7) (627.2)
(499.2)
Financial period (6,039.2) (3,809.7) (1,233.5)
(996.0)
Capital December 2010 (1,256.8) (586.0) (160.0)
(510.8)
expenditure September 2010 (1,316.8) (679.8) (144.6)
(492.4)
Financial period (2,573.6) (1,265.8) (304.6)
(1,003.2)
Notional cash December 2010 279,715 253,286 248,799
428,948
expenditure September 2010 284,118 261,334 241,037
451,137
- R/kg Financial period 281,943 257,391 244,842
439,675
Notional cash December 2010 1,257 1,138 1,118
1,928
expenditure September 2010 1,201 1,104 1,019
1,907
- US$/oz Financial period 1,228 1,121 1,067
1,915
West Africa Region
Ghana
Total Tarkwa
Damang
Operating costs December 2010 (965.8) (706.8)
(259.0)
September 2010 (1,028.7) (759.8)
(268.9)
Financial period (1,994.5) (1,466.6)
(527.9)
Capital December 2010 (689.1) (384.2)
(304.9)
expenditure September 2010 (544.9) (448.1)
(96.8)
Financial period (1,234.0) (832.3)
(401.7)
Notional cash December 2010 224,515 198,653
300,106
expenditure September 2010 209,061 209,378
208,020
- R/kg Financial period 216,707 204,147
255,595
Notional cash December 2010 1,009 893
1,349
expenditure September 2010 883 885
879
- US$/oz Financial period 944 889
1,113
South
America
Region
Peru
Cerro
Corona
Operating costs December 2010
(279.8)
September 2010
(273.1)
Financial period
(552.9)
Capital December 2010
(142.0)
expenditure September 2010
(82.0)
Financial period
(224.0)
Notional cash December 2010
144,700
expenditure September 2010
107,900
- R/kg Financial period
125,185
Notional cash December 2010
650
expenditure September 2010
456
- US$/oz Financial period
545
Australasia Region
Australia
Total St Ives Agnew
Corporate
Operating costs December 2010 (837.9) (650.4) (187.5)
-
September 2010 (796.5) (621.7) (174.8)
-
Financial period (1,634.4) (1,272.1) (362.3)
-
Capital December 2010 (299.0) (193.8) (105.2)
(27.5)
expenditure September 2010 (275.8) (202.8) (73.0)
(5.9)
Financial period (574.8) (396.6) (178.2)
(33.4)
Notional cash December 2010 215,812 217,074 212,255
-
expenditure September 2010 224,990 224,782 225,683
-
- R/kg Financial period 220,171 220,815 218,208
-
Notional cash December 2010 970 976 954
-
expenditure September 2010 951 950 954
-
- US$/oz Financial period 959 962 951
-
## Notional cash expenditure (NCE) per kilogram (ounce) = operating costs
plus capital expenditure divided by gold produced.
Underground and surface
South African rand and metric units
Total
Operating Results
Mine
Operations
Ore milled/treated
(000 tonne)
- underground December 2010
3,133
September 2010
3,086
Financial period
6,219
- surface December 2010
11,365
September 2010
11,424
Financial period
22,789
- total December 2010
14,498
September 2010
14,510
Financial period
29,008
Yield
(grams per tonne)
- underground December 2010
5.5
September 2010
5.6
Financial period
5.6
- surface December 2010
1.2
September 2010
1.2
Financial period
1.2
- combined December 2010
2.1
September 2010
2.1
Financial period
2.1
Gold produced
(kilograms)
- underground December 2010
17,299
September 2010
17,359
Financial period
34,658
- surface December 2010
13,345
September 2010
13,683
Financial period
27,028
- total December 2010
30,644
September 2010
31,042
Financial period
61,686
Operating costs
(Rand per tonne)
- underground December 2010
1,061
September 2010
1,091
Financial period
1,076
- surface December 2010
152
September 2010
158
Financial period
155
- total December 2010
348
September 2010
357
Financial period
352
South Africa Region
Operating Results
South
Total KDC Beatrix
Deep#
Ore milled/treated
(000 tonne)
- underground December 2010 2,533 1,350 666
517
September 2010 2,531 1,370 686
475
Financial period 5,064 2,720 1,352
992
- surface December 2010 1,626 1,175 362
89
September 2010 1,528 1,257 251
20
Financial period 3,154 2,432 613
109
- total December 2010 4,159 2,525 1,028
606
September 2010 4,059 2,627 937
495
Financial period 8,218 5,152 1,965
1,101
Yield
(grams per tonne)
- underground December 2010 5.5 6.6 4.4
5.1
September 2010 5.7 6.6 4.5
5.9
Financial period 5.6 6.6 4.4
5.5
- surface December 2010 0.6 0.7 0.4
1.1
September 2010 0.7 0.8 0.5
0.5
Financial period 0.7 0.7 0.5
1.0
- combined December 2010 3.6 3.8 3.0
3.9
September 2010 3.8 3.8 3.4
4.4
Financial period 3.7 3.8 3.2
4.1
Gold produced
(kilograms)
- underground December 2010 14,041 8,861 2,925
2,255
September 2010 14,335 9,071 3,076
2,188
Financial period 28,376 17,932 6,001
4,443
- surface December 2010 1,049 800 155
94
September 2010 1,123 987 126
10
Financial period 2,172 1,787 281
104
- total December 2010 15,090 9,661 3,080
2,349
September 2010 15,458 10,058 3,202
2,198
Financial period 30,548 19,719 6,282
4,547
Operating costs
(Rand per tonne)
- underground December 2010 1,120 1,304 880
947
September 2010 1,160 1,333 892
1,050
Financial period 1,140 1,319 886
996
- surface December 2010 78 85 55
80
September 2010 91 98 62
30
Financial period 84 92 58
71
- total December 2010 713 737 590
820
September 2010 758 742 669
1,008
Financial period 735 739 628
905
West Africa Region
Operating Results Ghana
Total Tarkwa
Damang
Ore milled/treated
(000 tonne)
- underground December 2010 - -
-
September 2010 - -
-
Financial period - -
-
- surface December 2010 7,000 5,746
1,254
September 2010 6,987 5,750
1,237
Financial period 13,987 11,496
2,491
- total December 2010 7,000 5,746
1,254
September 2010 6,987 5,750
1,237
Financial period 13,987 11,496
2,491
Yield
(grams per tonne)
- underground December 2010 - -
-
September 2010 - -
-
Financial period - -
-
- surface December 2010 1.1 1.0
1.5
September 2010 1.1 1.0
1.4
Financial period 1.1 1.0
1.5
- combined December 2010 1.1 1.0
1.5
September 2010 1.1 1.0
1.4
Financial period 1.1 1.0
1.5
Gold produced
(kilograms)
- underground December 2010 - -
-
September 2010 - -
-
Financial period - -
-
- surface December 2010 7,371 5,492
1,879
September 2010 7,527 5,769
1,758
Financial period 14,898 11,261
3,637
- total December 2010 7,371 5,492
1,879
September 2010 7,527 5,769
1,758
Financial period 14,898 11,261
3,637
Operating costs
(Rand per tonne)
- underground December 2010 - -
-
September 2010 - -
-
Financial period - -
-
- surface December 2010 138 123
207
September 2010 147 132
217
Financial period 143 128
212
- total December 2010 138 123
207
September 2010 147 132
217
Financial period 143 128
212
South
America
Region
Peru
Operating Results
Cerro
Corona
Ore milled/treated
(000 tonne)
- underground December 2010
-
September 2010
-
Financial period
-
- surface December 2010
1,495
September 2010
1,607
Financial period
3,102
- total December 2010
1,495
September 2010
1,607
Financial period
3,102
Yield
(grams per tonne)
- underground December 2010
-
September 2010
-
Financial period
-
- surface December 2010
1.9
September 2010
2.0
Financial period
2.0
- combined December 2010
1.9
September 2010
2.0
Financial period
2.0
Gold produced
(kilograms)
- underground December 2010
-
September 2010
-
Financial period
-
- surface December 2010
2,915
September 2010
3,291
Financial period
6,206
- total December 2010
2,915
September 2010
3,291
Financial period
6,206
Operating costs
(Rand per tonne)
- underground December 2010
-
September 2010
-
Financial period
-
- surface December 2010
187
September 2010
170
Financial period
178
- total December 2010
187
September 2010
170
Financial period
178
Australasia Region
Operating Results Australia
Total St Ives
Agnew
Ore milled/treated
(000 tonne)
- underground December 2010 600 434
166
September 2010 555 410
145
Financial period 1,155 844
311
- surface December 2010 1,244 1,202
42
September 2010 1,302 1,238
64
Financial period 2,546 2,440
106
- total December 2010 1,844 1,636
208
September 2010 1,857 1,648
209
Financial period 3,701 3,284
417
Yield
(grams per tonne)
- underground December 2010 5.4 4.4
8.2
September 2010 5.4 4.7
7.4
Financial period 5.4 4.6
7.8
- surface December 2010 1.6 1.7
0.6
September 2010 1.3 1.4
0.3
Financial period 1.5 1.5
0.4
- combined December 2010 2.9 2.4
6.6
September 2010 2.6 2.2
5.3
Financial period 2.7 2.3
5.9
Gold produced
(kilograms)
- underground December 2010 3,258 1,905
1,353
September 2010 3,024 1,945
1,079
Financial period 6,282 3,850
2,432
- surface December 2010 2,010 1,984
26
September 2010 1,742 1,723
19
Financial period 3,752 3,707
45
- total December 2010 5,268 3,889
1,379
September 2010 4,766 3,668
1,098
Financial period 10,034 7,557
2,477
Operating costs
(Rand per tonne)
- underground December 2010 811 703
1,092
September 2010 778 639
1,172
Financial period 795 672
1,129
- surface December 2010 283 287
150
September 2010 280 291
77
Financial period 281 289
106
- total December 2010 454 398
901
September 2010 429 377
836
Financial period 442 387
869
# December quarter includes 75,000 tonnes (September quarter includes 105,000
tonnes) of waste processed from underground. In order to show the yield based
on ore mined, the calculation of the yield at South Deep only, excludes the
underground waste.
Development results
Development values represent the actual results of sampling and no allowance
has been made for any adjustments which may be necessary when estimating ore
reserves. All figures below exclude shaft sinking metres, which are reported
separately where appropriate.
KDC December 2010 quarter
Carbon Kloof Main
VCR1
Reef Leader
Advanced (m) 4,992 76 1,186
5,722
Advanced on reef (m) 901 - 307
849
Sampled (m) 711 - 399
732
Channel width (cm) 74 - 97
141
Average value - (g/t) 24.6 - 5.4
18.7
- (cm.g/t) 1,813 - 523
2,648
KDC September 2010 quarter
Carbon Kloof Main2
VCR
Reef Leader
Advanced (m) 5,213 123 1,043
5,575
Advanced on reef (m) 797 2 278
903
Sampled (m) 663 3 377
774
Channel width (cm) 59 195 69
108
Average value - (g/t) 34.9 11.2 12.8
25.5
- (cm.g/t) 2,048 2,184 878
2,744
KDC Financial period
Carbon Kloof Main
VCR
Reef Leader
Advanced (m) 10,205 199 2,229
11,297
Advanced on reef (m) 1,698 2 585
1,752
Sampled (m) 1,374 3 776
1,506
Channel width (cm) 67 195 83
124
Average value - (g/t) 28.9 11.2 8.4
21.7
- (cm.g/t) 1,926 2,184 696
2,696
Beatrix December 2010 quarter
Reef Beatrix
Kalkoenkrans
Advanced (m) 4,436
1,755
Advanced on reef (m) 1,196
426
Sampled (m) 1,290
411
Channel width (cm) 101
101
Average value - (g/t) 8.1
17.5
- (cm.g/t) 815
1,763
Beatrix September 2010 quarter
Reef Beatrix
Kalkoenkrans
Advanced (m) 4,779
1,707
Advanced on reef (m) 1,554
296
Sampled (m) 1,593
285
Channel width (cm) 111
92
Average value - (g/t) 7.9
15.3
- (cm.g/t) 881
1,409
Beatrix Financial period
Reef
Advanced (m) 9,215
3,462
Advanced on reef (m) 2,750
722
Sampled (m) 2,883
696
Channel width (cm) 107
97
Average value - (g/t) 8.0
16.7
- (cm.g/t) 852
1,618
South Deep December 2010 September 2010
Financial
quarter quarter
period
Reef Elsburgs(1,2) Elsburgs(1,2)
Elsburgs(1,2)
Main Advanced (m) 3,096 2,982
6,078
- Main above 95
level (m) 1,987 1,774
3,761
- Main below 95
level (m) 1,103 1,181
2,284
Shaft sinking (m) 6 27
33
Advanced on reef (m) 1,909 1,664
3,573
- Square metres
effectively
de-stressed (m2) 1,317 1,827
3,144
- Reserve value
de-stressed (g/t) 7.0 7.4
7.2
1) Trackless development in the Elsburg reefs is evaluated by means of the
resource model.
2) Full channel width not fully exposed in development, hence not reported.
Administration and corporate information
Corporate Secretary
Cain Farrel
Tel: (+27)(11) 562 9742
Fax: (+27)(11) 562 9829
e-mail: cain.farrel@goldfields.co.za
Registered Office
Johannesburg
Gold Fields Limited
150 Helen Road
Sandown
Sandton
2196
Postnet Suite 252
Private Bag X30500
Houghton 2041
Tel: (+27)(11) 562 9700
Fax: (+27)(11) 562 9829
Office of the United Kingdom Secretaries
London
St James`s Corporate Services Limited
6 St James`s Place
London SW1A 1NP
United Kingdom
Tel: (+44)(20) 7499 3916
Fax: (+44)(20) 7491 1989
American Depository Receipts Transfer Agent
Bank of New York Mellon
BNY Mellon Shareowner Services
P O Box 358516
Pittsburgh, PA15252-8516
US toll-free telephone: (1)(888) 269 2377
Tel: (+1) 201 680 6825
e-mail: shrrelations@bnymellon.com
Gold Fields Limited
Incorporated in the Republic of South
Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN - ZAE 000018123
Investor Enquiries
Willie Jacobsz
Tel: (+508) 839 1188
Mobile: (+857) 241 7127
e-mail: willie.jacobsz@gfexpl.com
Nikki Catrakilis-Wagner
Tel: (+2711) 562 9706
Mobile: (+27) 83 309 6720
e-mail: nikki.catrakilis-wagner@goldfields.co.za
Media Enquiries
Sven Lunsche
Tel: (+2711) 562 9763
Mobile: (+27) 83 260 9279
e-mail: sven.lunsche@goldfields.co.za
Transfer Secretaries
South Africa
Computershare Investor Services
(Proprietary) Limited
Ground Floor
70 Marshall Street
Johannesburg, 2001
P O Box 61051
Marshalltown, 2107
Tel: (+27)(11) 370 5000
Fax: (+27)(11) 688 5248
United Kingdom
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
England
Tel: 0871 664 0300 (calls cost 10p a minute plus network extras, lines are
open 8.30am-5.30pm Mon-Fri) or (from overseas) +44 20 8639 3399
Fax: +44 20 8658 3430
e-mail: ssd@capitaregistrars.com
Website
http://www.goldfields.co.za
Listings
JSE / NYSE / NASDAQ Dubai: GFI
NYX: GFLB
SWX: GOLI
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.
Directors
M A Ramphele (Chair)
N J Holland *
(Chief Executive Officer)
PA Schmidt
(Chief Financial Officer)
K Ansah # A R Hill + D M J Ncube C I von Christierson
CA Carolus R P Menell R L Pennant-Rea * G M Wilson
R Danino ** D N Murray
* British # Ghanaian + Canadian
** Peruvian Independent Director
Non-independent Director
18 February 2011
Sponsor:
J.P. Morgan Equities Limited
Date: 18/02/2011 08:00:01 Produced by the JSE SENS Department.
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