GFI 201402240018A
Media release - Gold Fields declares 2013 mineral reserves and mineral resources
Gold Fields Limited
(Reg. No. 1968/004880/06)
(Incorporated in the Republic of South Africa)
(“Gold Fields” or “the Company”)
JSE, NYSE, DIFX Share Code: GFI
ISIN Code: ZAE000018123
MEDIA RELEASE - GOLD FIELDS DECLARES 2013 MINERAL RESERVES
AND MINERAL RESOURCES
Johannesburg, 24 February 2014: Gold Fields Limited (Gold
Fields) (JSE, NYSE, NASDAQ Dubai: GFI) is pleased to
announce its Mineral Reserve and Mineral Resource
declaration as at 31 December 2013.
Gold Fields’ managed gold Mineral Resources totalled 136.7
million ounces (December 2012: 149.3 million ounces) and
Mineral Reserves 52.6 million ounces (December 2012: 59.4
million ounces).
The decline in the Group’s Mineral Reserves is mainly
attributable to a US$1,300/oz gold price used compared with
the US$1,500/oz gold price used in the December 2012
declaration. Other than price impacts, mining depletion of
2.3 million ounces was the main contributor to the change
in Mineral Reserves.
Gold Fields’ managed copper Mineral Resources totalled
14,038 million pounds in December 2013 (December 2012:
15,237 million pounds) and Mineral Reserves 712 million
pounds (December 2012: 1,039 million pounds).
On an attributable basis gold Mineral Resource and Mineral
Reserve figures are 113.4 million ounces (125.5 million
ounces) and 48.6 million ounces (54.9 million ounces)
respectively, while attributable copper Mineral Resources
are 7,120 million pounds (8,622 million pounds) and
Mineral Reserves 708 million pounds (1024 million pounds)
respectively.
The 2013 declaration is a reflection of Gold Fields’
restructuring over the past 18 months, during which the
Group embarked on a fundamental shift in strategy away from
an emphasis on ounces of production to a primary focus on
driving margins and cash flow.
To this end Gold Fields engineered a structural shift in
the Group’s production and cost base, which included the
elimination of marginal mining at a number of its
operations as well as a significant reduction of its growth
and exploration portfolio. In addition Gold Fields has
achieved greater regional production diversification with
the unbundling of Sibanye Gold in South Africa in February
2013 and the acquisition of the Yilgarn South assets in
Australia in October 2013.
The South Africa Region comprises 56% of the Group’s
December 2013 managed gold Mineral Resources, West Africa
12%, Australasia 9%, the Americas 2% and the Growth
projects (Arctic Platinum, Chucapaca, Yanfolila, Woodjam
and Far Southeast) 21%. The South Africa Region comprises
73% of the Group’s managed gold Mineral Reserves, West
Africa 16%, Australasia 7% and the Americas 4%.
The table below shows the operating mines’ managed gold
Mineral Resources and Mineral Reserves for December 2013
and the comparable December 2012 declaration:
Mineral Resources Mineral Reserves
31 Dec 2013 Dec-12 31 Dec 2013 Dec-12
Tonnes Grade Gold Tonnes Grade Gold
GOLD (Mt) (g/t) (Moz) (Moz) (Mt) (g/t) (Moz) (Moz)
Australia Operations
Agnew 16.8 5.53 2.99 3.50 3.0 7.37 0.71 1.15
Lawlers 2.4 8.72 0.67 - 1.2 6.24 0.24 -
Darlot 1.6 5.26 0.27 - 1.0 5.09 0.15 -
Granny Smith 36.2 2.80 3.25 - 4.1 6.34 0.84 -
St Ives 38.4 3.51 4.34 4.72 20.7 3.03 2.02 2.19
South African Operation
South Deep 382.8 6.20 76.25 79.30 224.4 5.30 38.22 39.11
Americas Operation
Cerro Corona 125.3 0.82 3.32 3.70 67.1 0.94 2.03 2.77
West Africa Operations
Damang 95.8 2.14 6.58 8.43 22.8 1.46 1.07 4.09
Tarkwa 275.7 1.16 10.29 14.56 218.8 1.03 7.27 10.08
Total Managed Operating
975.0 3.44 107.96 114.21 563.2 2.90 52.56 59.40
Mines
Attributable to GFL 906.1 3.43 100.05 105.59 520.4 2.91 48.61 54.85
A regional overview shows the following highlights:
- The Australasia Region has a declared managed gold
Mineral Resource of 11.5 million ounces (December 2012:
8.2 million) and a gold Mineral Reserve of 4.0 million
ounces (December 2012: 3.3 million ounces). These figures
are net of 0.7 million ounces from mined depletion, and
include the Yilgarn South assets contribution of 4.2 million
ounces and 1.2 million ounces to the Mineral Resource and
Mineral Reserve declaration respectively.
At Granny Smith, open pit Mineral Reserves of 1.1 million
ounces previously reported by Barrick Gold, have been
excluded due to the lower gold price. At St Ives the
discovery of the expansive Invincible deposit led to a
maiden open pit Mineral Reserve declaration of 3,74
million tonnes at 4.09 g/t for 492,000 ounces.
- The South Africa Region has a total declared managed
gold Mineral Resource of 76.2 million ounces (December
2012: 79.3 million ounces) and a gold Mineral Reserve
amounting to 38.2 million ounces (December 2012: 39.1
million ounces). These figures are net of 0.3 million
ounces from mined depletion. The attributable ounces are
91.86% of the managed figure.
- The Americas Region has a declared managed gold Mineral
Resource of 3.3 million ounces (December 2012: 3.7 million
ounces) and a gold Mineral Reserve of 2.0 million ounces
(December 2012: 2.8 million ounces). The managed copper
Mineral Resource and Mineral Reserve are 1,124 million
pounds (December 2012: 1,302 million pounds) and 712
million pounds (December 2012: 1,039 million pounds)
respectively. The figures for the Americas Region are net
of 0.3 million ounces gold and 106 million pounds copper
from mined depletion respectively.
Gold Fields took a decision not to proceed with the
Tailings Storage Facility (TSF) raise at Cerro Corona on
economic grounds. This resulted in an approximate 400,000
oz decrease in Mineral Reserves, though the mine has the
option to construct the raise in future.
- The West Africa Region has a declared managed gold
Mineral Resource of 16.9 million ounces (December 2012:
23.0 million ounces) and a gold Mineral Reserve of 8.3
million ounces (December 2012: 14.2 million ounces). These
figures are net of about 1.0 million ounces from mined
depletion.
The Mineral Reserves at Damang were reduced from 4.1
million ounces to 1.1 million ounces during 2013, as
production from the Main Pit Cutback 2 is not economically
viable at US$1,300/oz in its current configuration.
At Tarkwa, the exclusion of underground Mineral Resources
and downsized pit shells, due to a lower gold price,
impacted adversely on the declaration.
- The gold Mineral Resource for Gold Fields’ Growth
projects totalled 28.7 million ounces (December 2012: 35.1
million ounces) with the decline due to the exclusion of
the Talas Project in Kyrgyzstan, which was sold in
December 2013.
The following key parameters were used as the basis for
estimation for the operating mines:
Approved prices for plan as at Approved prices
31/12/2012 31 December 2013
Unit Resource Reserve Resource Reserve
Ghana & Peru Au – US$/oz 1,650 1,500 1,500 1,300
Australia Au – A$/oz 1,650 1,500 1,570 1,370
South Africa Au - R/kg 420 000 380 000 460 000 400 000
Peru Cu – US$/lb 3.90 3.50 3.50 3.00
The commodity prices used for the Mineral Reserve
declaration are within the US SEC guidelines, as the gold
price used (US$1,300/oz) is lower than the three year
trailing average (US$1,550/oz) and more in line with the
current spot price. The December 2013 Mineral Resource
gold price has a premium of about 15% over the Mineral
Reserve metal price.
The Group’s December 2013 Mineral Resource and Mineral
Reserve statement is in accordance with the requirements
of the South African Code for the Reporting of Exploration
Results, Mineral Resources and Mineral Reserves (the
SAMREC Code, 2007 edition) and Industry Guide 7 for
reporting to the United States Securities and Exchange
Commission (SEC). Other relevant international codes are
recognised, where geographically applicable, such as the
Australian Joint Ore Reserves Committee (JORC 2012) Code
and the Canadian National Instrument (NI) 43-101.
Corporate governance on the overall regulatory compliance
of these figures has been overseen and consolidated by the
Gold Fields Competent Person Tim Rowland, who consents to
the disclosure of this Mineral Resource and Mineral
Reserve statement, and is Gold Fields’ Vice-President
Mineral Resource Management and Mine Planning (PR. Sci.
Nat. No. 400122/00, BSC (Hons) Geology, MSc Mineral
Exploration, GDE Mining Engineering and FSAIMM, FGSSA and
GASA), with 28 years’ relevant experience in the mining
industry.
Full details of Gold Fields’ Mineral Reserves and Mineral
Resources declaration will be released in the 2013 Mineral
Resources and Mineral Reserves Supplement as an
accompaniment to the 2013 Integrated Annual Review due by
end-March 2013.
Enquiries
Investors
Willie Jacobsz
Mobile: +27 82 971 9238 (SA)
Mobile: +1 857 241 7127 (USA)
email: Willie.Jacobsz@goldfields.co.za
Media
Sven Lunsche
Tel: +27 11 562-9763
Mobile: +27 83 260 9279
email :
Sven.Lunsche@goldfields.co.za
Notes to editors
About Gold Fields
Gold Fields Limited is an unhedged, globally diversified
producer of gold with eight operating mines in Australia,
Ghana, Peru and South Africa. In February 2013 Gold Fields
unbundled its KDC and Beatrix mines in South Africa into
an independent and separately listed company, Sibanye
Gold. In October 2013 Gold Fields acquired Barrick Gold's
Granny Smith, Lawlers and Darlot Gold Mines in Western
Australia. Gold Fields subsequently has attributable
annual production of approximately 2.2 million ounces of
gold, managed gold Mineral Reserves of approximately 59
million ounces and managed gold Mineral Resources of
approximately 137 million ounces. Gold Fields has a
primary listing on the JSE Limited, with secondary
listings on the New York Stock Exchange (NYSE), NASDAQ
Dubai Limited, Euronext in Brussels (NYX) and the Swiss
Exchange (SWX).
Sponsor: J.P. Morgan Equities South Africa (Pty) Ltd
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