GFI 201803280062A
Gold Fields publishes 2017 Integrated Annual Report
Gold Fields Limited
Reg. No. 1968/004880/06)
Incorporated in the Republic of South Africa)
Share Code: GFI
ISIN Code: ZAE000018123
MEDIA RELEASE
Gold Fields publishes 2017 Integrated Annual Report
Johannesburg, 28 March 2018: Gold Fields Limited (Gold Fields)
(JSE, NYSE: GFI) today published its Integrated Annual Report
2017 (IAR) and a number of associated reports on its website.
These are the statutory Annual Financial Report 2017, including
the Governance Report, containing the audited separate and
consolidated financial statements for the year ended 31 December
2017, the 2017 Mineral Resources and Mineral Reserves Supplement,
the Notice to Shareholders of the Annual General Meeting (AGM)
and Gold Fields’ Global Reporting Initiative (GRI) Content Index
for the IAR. The IAR will be posted to shareholders on Thursday,
29 March 2018.
The IAR and the Annual Financial Report incorporate all aspects
of the Group’s business, including reviews of the South African,
West African, Australian and South American operations, the
Group’s project activities, as well as detailed financial,
operational and sustainable development information.
KPMG Inc. have audited the financial statements for the year
ended 31 December 2017, including the Annual Financial Report,
and their unmodified audit report is open for inspection at the
Company’s offices.
The financial statements in the Annual Financial Report contain
modifications to the preliminary reviewed condensed consolidated
financial statements published on SENS on 14 February 2018. See
“Correction of methodology” below.
The Integrated Annual Report, the Notice to Shareholders of the
AGM, the Annual Financial Report, the Mineral Resources and
Mineral Reserves Supplement and the GRI Content Index are
available at www.goldfields.com.
Mineral Resources and Mineral Reserves Supplement 2017
The Gold Fields Mineral Resources and Mineral Reserves Supplement
2017 contains a comprehensive overview of Gold Fields’ Mineral
Resource and Mineral Reserve status as well as a detailed
breakdown for its operations and projects.
As at 31 December 2017, Gold Fields had attributable gold Mineral
Reserves of 49 million ounces (2016: 48 million ounces) and gold
Mineral Resources of 104 million ounces (2016: 101 million
ounces). In addition, the attributable copper Mineral Reserves
totalled 764 million pounds (2016: 454 million pounds) and copper
Mineral Resources 4,881 million pounds (2016: 5,813 million
pounds). Stated figures are net of annual production depletion.
The SAMREC Code compliant Mineral Reserves are based on gold and
copper prices of US$1,200/oz (A$1,600/oz, R525,000/kg) and
US$2.50/lb (increasing to US$2.80/lb from 2020 onwards),
respectively. Relevant tonnes, grades, classification,
reconciliations and Competent Persons are detailed in the
Supplement.
Notice of Annual General Meeting (AGM)
Notice is given to Shareholders of the AGM of the Company to be
held at 150 Helen Road, Sandown, Sandton, on Tuesday, 22 May 2018
at 15:00. The AGM will transact the business as stated in the
Notice of that meeting, a copy of which can be found with the
Integrated Annual Report on the company’s website at
www.goldfields.com.
In terms of section 59(1) (b) of the Companies Act, 71 of 2008,
the record date for the purpose of determining which shareholders
are entitled to participate in and vote at the AGM (being the
date on which a shareholder must be registered in the Company’s
securities register in order to participate in and vote at the
AGM) is Friday, 11 May 2018. Therefore the last day to trade in
order to be registered in the Company’s securities register as at
the record date is Tuesday, 8 May 2017.
Correction of methodology
The financial statements in this report contain modifications to
the preliminary reviewed condensed consolidated financial
statements published on SENS on 14 February 2018.
Subsequent to 14 February 2018, as a result of a Securities and
Exchange Commission (SEC) comment letter received by the Company
in August 2017, the Company concluded that prior years’
understatement of the amortisation of the mineral rights asset at
the Australian operations was material to the 2017 consolidated
financial statements and therefore restated the prior years’
consolidated financial statements in terms of IAS 8, Accounting
Policies, Changes in Accounting Estimates and Errors. In the
preliminary reviewed condensed consolidated financial statements
the prior years’ understatement was accounted for in the 2017
financial year and not in the prior years, as subsequently
concluded.
During the year ended 31 December 2017, the Group corrected the
amortisation methodology for the mineral rights assets at the
Australian operations. Prior to the correction in methodology,
the total mineral rights asset capitalised at the Australian
operations was amortised on a units-of-production basis over a
useful life that exceeded Proved and Probable reserves. The
amortisation methodology was revised in order to divide the total
mineral rights asset capitalised at the respective operations
into a depreciable and a non-depreciable component. The
depreciable component is then amortised over the estimated Proved
and Probable reserves of the respective Australian mines on the
units-of-production method. For further details, refer to
accounting policies.
An amount of US$23.2 million (US$16.3 million after taxation),
representing 3% of the total amortisation and depreciation
charge, was included in the preliminary reviewed consolidated
financial statements for the year ended 31 December 2017 in
respect of correcting the understatement of amortisation relating
to prior years. In the 2017 annual financial statements this has
been reversed from the 2017 year and recognised in prior years.
The impact on the consolidated income statements, in respect of
each of the affected financial statement line items, of the
restatements is as follows:
Financial Amortisation Deferred Net
year tax effect
(US$
million)
2016 (1) 6.7 (2.0) 4.7
2015 (2) 7.4 (2.2) 5.2
Prior 9.1 (2.7) 6.4
years
Total 23.2 (6.9) 16.3
1 The amortisation charge of US$6.7 million represents 1% of the total amortisation and depreciation
charge of US$671.4 million for 2016
2 The amortisation charge of US$7.4 million represents 1% of the total amortisation and depreciation
charge of US$591.5 million for 2015
UNITED STATES DOLLAR
31 December 2017 31 December 2016
As Adjustments As As Adjustme As
reported restated reported nts restat
in in in ed in
preliminar audited prelimin audite
y reviewed consolid ary d
consolidat ated reviewed consol
ed financial consolid idated
financial ated financ
statements statemen financia ial
ts l statem
statemen ents
ts
Continuing operations US$ million US$ million
Revenue 2 761.8 - 2 761.8 2 666.4 - 2 666.4
Cost of sales (2 128.3) 23.2 (2 105.1) (1 994.6) (6.6) (2 001.2)
Others (504.3) - (504.3) (307.8) - (307.8)
Profit before taxation 129.2 23.2 152.4 364.0 (6.6) 357.4
Mining and income taxation (166.3) (6.9) (173.2) (191.5) 2.0 (189.5)
(Loss)/profit from continuing (37.1) 16.3 (20.8) 172.5 (4.6) 167.9
operations
Profit from discontinued 13.1 - 13.1 1.2 - 1.2
operations, net of taxation
(Loss)/profit for the year (24.0) 16.3 (7.7) 173.7 (4.6) 169.1
(Loss)/profit attributable
to:
- Owners of the parent (35.0) 16.3 (18.7) 162.8 (4.6) 158.2
- Non controlling interest 11.0 - 11.0 10.9 - 10.9
holders
(24.0) 16.3 (7.7) 173.7 (4.6) 169.1
(Loss)/earnings per share
attributable to owners of the
parent:
Basic (loss)/earnings per (6) 2 (4) 20 (1) 19
share from continuing
operations- cents
Diluted (loss)/earnings per (6) 2 (4) 20 (1) 19
share from continuing
operations- cents
Headline earnings per share 24 2 26 25 (1) 24
from continuing operations -
cents
All unaffected financial statement items have been grouped
together as “others”.
The impact on the consolidated statements of financial position,
in respect of each of the affected financial statement line
items, of the restatements is as follows:
UNITED STATES DOLLAR
31 December 2017 31 December 2016
As reported in Adjustm As As Adjustmen As
preliminary ents restated reported ts restated
reviewed in in in
consolidated audited prelimina audited
financial consolida ry consolida
statements ted reviewed ted
financial consolida financial
statement ted statement
s financial s
statement
s
US$ million US$ million
Property, plant and 4 892.9 - 4 892.9 4 547.8 (23.2) 4 524.6
equipment
Retained earnings (1 473.1) 2.0 (1 471.1) (1 570.9) 18.3 (1 552.6)
Deferred taxation (453.9) - (453.9) (465.5) 6.9 (458.6)
liability
There was no impact on the consolidated statements of cash flows
as the correction in methodology was non-cash. For further
details, refer to note 40 of the consolidated financial
statements.
Enquiries
Investors
Avishkar Nagaser
Tel: +27 11 562-9775
Mobile: +27 82 312 8692
Email : Avishkar.Nagaser@goldfields.com
Thomas Mengel
Tel: +27 11 562 9849
Mobile: +27 72 493 5170
Email: Thomas.Mengel@goldfields.com
Media
Sven Lunsche
Tel: +27 11 562-9763
Mobile: +27 83 260 9279
Email : Sven.Lunsche@goldfields.com
ends
Notes to editors
About Gold Fields
Gold Fields Limited is a globally diversified gold producer with
seven operating mines in Australia, Ghana, Peru and South Africa,
and a total attributable annual gold-equivalent production of
approximately 2.2 million ounces. It has attributable gold
Mineral Reserves of around 49 million ounces and gold Mineral
Resources of around 104 million ounces. Attributable copper
Mineral Reserves total 764 million pounds and Mineral Resources
4,881 million pounds. Gold Fields has a primary listing on the
Johannesburg Stock Exchange (JSE) Limited, with secondary
listings on the New York Stock Exchange (NYSE) and the Swiss
Exchange (SIX).
Sponsor: J.P. Morgan Equities South Africa (Pty) Ltd
Date: 28/03/2018 04:17:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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