GOLD FIELDS LIMITED
Incorporated in the Republic of South Africa
Registration number 1968/004880/06 ISIN: ZAE000018123
Share Code: GFI Issuer Code: GOGOF
QUARTER AND YEAR END RESULTS TO 30 JUNE 2003
REVIEWED PRELIMINARY RESULTS
ANOTHER RECORD PRODUCTION YEAR
YEAR ENDED 30 JUNE 2003
* Attributable gold production year on year increases
5 per cent to an all-time high of 4.33 million ounces.
* Net earnings of R2.95 billion (US$326 million) achieved.
* Capital expenditure increased 46 per cent to R2.3 billion (US$251 million).
* Exploration spend up 129 per cent to R212 million (US$23 million).
* Final dividend of SA 100 cents declared.
* Offshore debt reduced from US$182 million at the beginning of the year to
US$42 million at the end of the year.
QUARTER ENDED 30 JUNE 2003 * Attributable gold production of 1,041,000 ounces.
* Strong Rand reduced operating profit 36 per cent to R717 million
(US$100 million).
* Profit on the sale of investments R302 million (US$34 million).
* Foreign debt of US$95 million repaid during the quarter.
* Net earnings of R789 million.
* US Dollar earnings increase 5 per cent to US$98 million
STOCK DATA
Number of shares in issue
- at 30 June 2003 472,364,872
- average for the quarter 472,219,228
Free Float 100%
ADR Ratio 1:1
Bloomberg / Reuters GFISJ / GFLJ.J
JSE SECURITIES EXCHANGE SOUTH AFRICA - (GFI)
Range - Quarter ZAR71.40 ZAR100.70
Average Volume - Quarter 1,524,000 shares / day
NYSE - (GFI)
Range - Quarter US$9.70 US$13.00
Average Volume - Quarter 1,520,000 shares / day
INVESTOR RELATIONS
Europe & South Africa
Willie Jacobsz
Tel: +27 11 644-2460
Fax: +27 11 484-0639
E-mail: investors@goldfields.co.za
North America
Cheryl A. Martin
Tel: +1 303 796-8683
Fax: +1 303 796-8293
E-mail: camartin@gfexpl.com
www.goldfields.co.za www.gold-fields.com
SALIENT FEATURES
SA RAND
Year ended Quarter
June June June March June
2002 2003 2002 2003 2003
kg Gold produced* oz 127,812 134,813 36,046 33,340 32,380
(000)
R/kg Total cash costs $ 56,662 61,766 57,935 60,709 63,369
/oz
000 Tons milled 000 36,953 42,988 11,014 10,792 10,925
R/kg Revenue $/oz 95,730 97,060 105,024 95,068 86,751
R/ton Operating costs $ 213 213 207 201 204
/ton
Rm Operating profit $m 4,785 4,741 1,610 1,126 717
Rm Net earnings $m 3,073 2,953 1,180 805 789
SA c.p.s*US c.p.s. 662 626 251 171 167
Net earnings excluding 2,590 2,011 845 476 226
gains and losses on
financial instruments
and foreign debt net
of cash and exceptional
Rm items $m
SA c.p.s. US c.p.s. 558 426 180 101 48
SALIENT FEATURES
US DOLLARS
Year ended Quarter
June June June March June
2002 2003 2002 2003 2003
kg Gold produced* oz 1,041 1,072 1,159 4,334 4,109
(000)
R/kg Total cash costs $ 255 225 171 212 173
/oz
000 Tons milled 000 10,925 10,792 11,014 42,988 36,953
R/kg Revenue $/oz 349 353 311 333 292
R/ton Operating costs $ 26 24 20 23 21
/ton
Rm Operating profit $m 100 135 157 523 470
Rm Net earnings $m 98 93 112 326 301
SA c.p.s*US c.p.s. 21 20 24 69 65
Net earnings excluding 34 58 80 222 254
gains and losses on
financial instruments
and foreign debt net
of cash and exceptional
Rm items $m
SA c.p.s. US c.p.s. 8 12 17 47 55
*Attributable All companies wholly owned except for Ghana (71.1%).
DEAR SHAREHOLDERS
The Company has again been able to produce a solid set of results for
the financial year and quarter, both of which ended on 30 June 2003.
Despite the challenges posed by the strengthening Rand, an excessive
number of public holidays during the quarter and grade fluctuations
at Kloof, we have produced a consistent and credible set of results
for both periods.
Particularly pleasing has been the safety performance the Group
during the past year, with Gold Fields recording the best safety
achievements since its inception in 1998. This is the result of a
relentless focus on the full compliance safety campaign by each one
of our people, and reflects the growing seriousness with which
management and employees alike approach safety on our mines.
For the year gold production increased by 5 per cent to 4.33 million
ounces, largely as a result of the inclusion for a full year of the
St Ives, Agnew and Damang Mines, acquired in financial 2002.
Production for the June quarter was marginally down, mainly because
of lower grades experienced at Kloof Mine. This is evidence of the
continuing decline in grades experienced across the South African
gold mining industry. Since the quarter end grades have improved at
the Kloof mine. Year on year Gold Fields saw a decline of 9 per cent
in underground grades at its South African operations, from 8.2 grams
per ton to 7.5 grams per ton.
In the current strong Rand environment, cost control has become an
even higher priority, especially at our South
African operations. This is borne out by our operating teams'
ability to limit increases in total costs to only two per cent during
the June quarter, with Rand per ton costs virtually in line with the
previous quarter. Year on year we saw a 3 per cent increase in
underground mining costs from R496 per ton to R509 per ton,
significantly below inflation.
As in the March quarter, the strong Rand has again had a significant
impact on the Rand gold price received, resulting in a 36 per cent
decline in operating profit quarter on quarter, from R1,126 million
to R717 million. However, we have been able to maintain net earnings
at R789 million, assisted largely by the opportunistic realisation of
non-core holdings in other mining companies, as well as further gains
on financial instruments and foreign debt related to our Australian
operations.
The June quarter also saw a further significant reduction in debt
from US$136 million to US$42 million. The proceeds from the sale of
the non-core holdings referred to above were utilised for this
purpose along with some accelerated close outs of our Australian
Dollar currency instruments and other offshore cash. This is in line
with management's policy of maintaining a strong and unencumbered
balance sheet, as a prerequisite for a company that does not hedge
gold, and in order to maintain Gold Fields' competitive position on
the corporate front.
A highlight of the past quarter has been the announcement of the
Black Economic Empowerment transaction through which an empowerment
consortium led by Mvelaphanda
Resources Limited aims to acquire a 15 per cent stake in the South
African assets of Gold Fields, on commercial terms. This
transaction, coupled with a wide range of other social and
sustainable development initiatives, positions your company at the
forefront of the transformation of the South African mining industry
and will ensure that Gold Fields meets the requirements of the Mining
Charter well within the required timeframes.
The past year also saw a significant increase in capital and
exploration expenditure which, together with our strong balance
sheet, positions Gold Fields well for the future.
In conclusion, while the operational outlook for the coming year
remains generally positive, Gold Fields, like the rest of the South
African gold mining industry, will be challenged by the impact of the
volatile and strong Rand as well as increased cost pressures brought
about by the recent wage increases negotiated with the National Union
of Mineworkers. It is our intention to manage these challenges
decisively and in a manner that will safeguard the track record of consistent
results that we have developed over the past five years.
Yours Sincerely
ID COCKERILL
CHIEF EXECUTIVE OFFISER
1 August 2003
In order to provide you with the best and most transparent
information, within the framework of accounting and JSE requirements,
it would be appreciated if you could give us feedback (to Willie or
Cheryl listed above) on the information provided in this booklet and
any additional information you deem relevant. Thanking you in
advance for your participation.
COMMENTARY
HEALTH AND SAFETY
The safety performance of the Group has once again shown improvement
quarter on quarter, with the fatal injury frequency rate improving by
28 per cent from 0.32 to 0.23, the serious injury frequency rate
improving from 7.1 to 6.5 or 9 per cent and the lost day injury
frequency rate improving by 3 per cent from 14.3 to 13.9. During the
quarter Beatrix achieved 2,000,000 fatal free shifts and Driefontein
1,000,000.
A comparison of the year on year performance indicates a significant
improvement, with the best ever safety performance for the Group
since establishment in 1998. The fatal injury frequency rate
improved year on year by 26 per cent from 0.31 to 0.23. The serious
injury frequency rate improved from 8.0 to 6.5 or 19 per cent and the
lost day injury frequency rate improved 50 per cent from 28.0 to
13.9. The days lost frequency rate improved from 455 to 421 or
8 per cent.
FINANCIAL
Quarter ended 30 June 2003
NET EARNINGS
Net earnings for the quarter amounted to R789 million (US$98
million), compared to R805 million (US$93 million) earned in the
previous quarter. Included in this quarter's earnings are
exceptional items of R272 million (US$31 million), which includes a
profit on sale of investments of R302 million (US$34 million) and
exceptional health care costs of R27 million (US$3 million). The
profit on the sale of investments results from the sale of the
remaining 19.8 million shares in Eldorado Gold Corporation yielding a
profit of R222 million (US$25 million), the sale of 870,000 shares in
Glamis Gold Limited (leaving a holding of 88,000 shares), which
yielded a profit of R64 million (US$7 million), the sale of 73,000
shares in Chesapeake (7 per cent of our holding), which yielded a
profit of R1.4 million (US$0.2 million) and the sale of 400,000
ARMgold shares (18 per cent of our holding), which yielded a profit
of R14 million (US$1,5 million). The above is included in
exceptional items and compares with the R178 million (US$19 million)
profit on the sale of investments included last quarter.
Earnings, excluding exceptional items after taxation as well as the
net gains on financial instruments and foreign debt, amounted to
R226 million (US$34 million) as compared to R476 million (US$58
million) achieved last quarter.
REVENUE
Revenue is significantly lower than the previous quarter due to an 8
per cent strengthening of the average Rand/US Dollar exchange rate
from 8.38 in the March 2003 quarter to 7.74 this quarter. This was
exacerbated by the lower US Dollar gold price at US$349 per ounce,
compared to US$353 per ounce last quarter. The resultant Rand gold
price of R86,751 per kilogram is thus 9 per cent lower than the
R95,068 per kilogram achieved last quarter. This, together with the
lower gold sales at 34,244 kilograms (1,101,000 ounces) as compared
to 35,257 kilograms (1,134,000 ounces) last quarter, resulted in
revenue of R2,971 million (US$383 million) compared to R3,352 million
(US$397 million) last quarter. The lower gold sales are mainly as a
result of lower underground grades at Kloof.
OPERATING COSTS
Operating costs at R2,224 million (US$281 million) for the quarter
were 2 per cent higher than the previous quarter's costs of R2,172
million (US$256 million) mainly as a result of the impact of the
higher production at St Ives in Australia. South African operational
costs increased 1 per cent compared to the previous quarter. On a
Group basis, total cash costs increased from R60,709 per kilogram
last quarter to R63,369 per kilogram this quarter. In US Dollar
terms total cash costs increased from US$225 per ounce to US$255 per
ounce mainly due to the stronger Rand quarter on quarter.
The net effect of the decreased revenue and marginally higher costs,
together with a gold in process charge due to a net release of
inventory at the international operations, was a decrease in
operating profit from R1,126 million (US$135 million) in the March
quarter to R717 million (US$100 million) this quarter.
Amortisation was 10 per cent lower than the previous quarter at R306
million (US$39 million), mainly due to a re-assessment of the
allocation of the at acquisition carrying values of the assets of the
individual operations (St Ives and Agnew), which affected
amortisation tenement rates. Amortisation calculations now provide a
better matching of costs and revenues over the life of these
operations.
FINANCIAL INSTRUMENTS AND DEBT
The Australian Dollar once again strengthened against the US Dollar,
from 59.4 cents at the end of the March quarter to 66.2 cents at the
end of the current quarter. US$84 million of the foreign debt used
to finance the acquisition of the Australian operations was repaid
during the quarter. The stronger Australian Dollar, resulted in a
gain on foreign debt of R66 million (US$7 million) as compared to a
gain of R55 million (US$6 million) achieved in the March 2003
quarter. Outstanding debt at the Australian operations thus reduced
significantly from US$113 million at the end of the March quarter to
US$29 million by the end of June.
As previously reported, the Australian operations established
currency financial instruments to protect the cash flows against a
possible strengthening of the Australian Dollar against the United
States Dollar. At the quarter end, US$300 million was outstanding
under these instruments. The reduction from US$400 million in the
previous quarter is due to an acceleration of close outs of our
put/call collar structure in addition to the standard quarterly
maturities of US$25 million. This has generated US$24 million in
cash, which has been used to prepay offshore debt. Gains on these
financial instruments amounted to R320 million (US$36 million) in the
current quarter compared to R185 million (US$19 million) in the
previous quarter. At the end of the June quarter, the marked to
market value of these US Dollar/Australian Dollar financial
instruments was a positive R536 million (US$69 million).
The gain on financial instruments was partially offset by an
unrealised loss on SA Rand/US Dollar forward cover of US$36 million.
This was purchased during the quarter to hedge the Group's commitment
in respect of the Tarkwa mill and owner mining projects approved last
quarter for US$159 million, since this project is to be funded from
South African sources. The weighted average forward rate in respect
of the forward cover established was R8.73 maturing on 3 June 2004.
The marked to market value of this forward purchase at the end of the
quarter was a negative R9 million (US$1.1 million).
Details of the financial instruments are provided on page 9 of this
report.
Exploration increased, from R31 million (US$4 million) in the March
quarter to R100 million (US$12 million) in the June quarter. For
further commentary on exploration, please refer to page three.
Profit before taxation and exceptional items was R697 million (US$93
million) compared to R1,037 million (US$122 million) posted in the
March 2003 quarter.
Taxation at R151 million is 60 per cent below the previous quarter as
a result of the impact the mining tax formula has on mining tax,
given the reduced operating profit.
Net earnings, after accounting for minority interests were thus R789
million (US$98 million) or 167 cents per share (US21 cents), compared
to R805 million (US$93 million) or 171 cents per share (US20 cents)
in the previous quarter.
CASH FLOW
Operating cash flow for the quarter was R577 million (US$95 million),
which was R637 million lower than operating cash flow in the March
quarter of R1,214 million (US$141 million). The decrease is mainly
due to the lower operating profit.
Capital expenditure was R685 million (US$84 million) as compared to
R505 million (US$60 million) in the March 2003 quarter. The increase
is due to a catch-up of forecast expenditure, mainly on major
projects, which are still forecast to be in line with approved votes.
Of this amount, R423 million (US$77 million) was expended at the
South African operations with the significant portion directed at the
major projects, R119 million at the 1E and 5E shafts and R26 million
on the new mill installation at Driefontein, with further development
at Kloof 4 shaft of R52 million and Beatrix 3 shaft of R60 million.
The Australian operations incurred capital expenditure of R186
million (A$34 million), the majority on development of existing
projects and exploration aimed at increasing the ore reserve base at
those operations. At the Ghanaian operations, capital expenditure
Commentary
amounted to R60 million (US$7 million), the majority at Tarkwa for
the expansion of the leach pads.
The sale of investments, being Eldorado, Glamis, Chesapeake and
ARMgold referred to earlier, resulted in a cash inflow of R359
million (US$51 million). The foreign portion of these proceeds was
applied to the payment of offshore debt.
Net cash outflow for the quarter was R754 million (US$67 million)
after taking account of external loan and minority shareholder loan
repayments of R736 million (US$99 million), the final tax payment for
the year of R124 million and environmental and post-retirement health
care payments of R242 million (US$27 million), which includes payment
for the settlement of post-retirement health care obligations of
R207 million (US$27 million). The cash balance at the end of the
June 2003 quarter was R1,041 million (US$134 million) as compared to
R1,821 million (US$224 million) at the end of the March 2003 quarter.
Debt at the end of June was R324 million (US$42 million) as compared
to R1,110 million (US$136 million) at the end of March 2003.
Cash net of both long-term and short-term debt at the end of the quarter
was a positive R717 million (US$92 million) virtually unchanged
from the R711 million (US$88 million) last quarter.
Quarter ended 30 June 2003 compared to quarter ended 30 June 2002
Attributable gold production decreased from 1,159,000 ounces in the
June 2002 quarter to 1,041,000 ounces this quarter. The decrease in
production was partly due to the sale of St Helena earlier in the
year and due to the lower grades, particularly at Kloof and
Driefontein.
Revenue decreased 22 per cent in Rand terms (increase of 3 per cent
in US Dollar terms) from R3,826 million (US$372 million) to R2,971
million (US$383 million) due to a reduction in the Rand gold price
achieved from R105,024 per kilogram (US$311 per ounce) in the June
2002 quarter to R86,751 per kilogram (US$349 per ounce) in the June
2003 quarter. Operating costs were marginally lower at R2,224
million (US$281 million) compared to R2,261 million (US$219 million)
in the June 2002 quarter. Increases at the South African operations
were offset by the impact of translating costs at the international
operations into South African Rand at a stronger R/US Dollar exchange
rate than the corresponding quarter in the previous year. Earnings
decreased from R1,180 million (US$112 million) in the June 2002
quarter to R789 million (US$98 million) in the current quarter.
Year ended 30 June 2003 compared to the year ended 30 June 2002
Attributable gold production increased 5 per cent from 4,109,000
ounces to 4,334,000 ounces mainly as a result of the acquisition of
the Australian and Damang operations, which are included for the full
year to June 2003, as compared to seven and five months for the
Australian and Damang operations respectively in the year to June
2002. This was partly offset by the sale of St Helena, effective 30
October 2002.
Revenue increased by 11 per cent in Rand terms (25 per cent in US
Dollar terms) from R12,528 million (US$1,230 million) to R13,893
million (US$1,532 million) due to the increase in production and an
increase in the gold price from R95,730 to R97,060 per kilogram for
the year ended 30 June 2003. The acquisitions in Australia and Ghana
referred to earlier, also contributed to the increase in operating
costs from R7,826 million (US$768 million) to R9,142 million
(US$1,008 million). Costs were also impacted by normal inflationary
increases and the increase in mining volumes at the South African
operations required to counter the lower underground grades being
achieved, where yields have reduced 9 per cent year on year from 8.2
grams per ton last year to 7.5 grams per ton this year.
Earnings decreased 4 per cent to R2,953 million from R3,073 million
the previous year but increased in US Dollar terms from US$302
million to US$326 million for the year ended June 2003.
OPERATIONS
Overview
Attributable gold production for the June 2003 quarter decreased to
1,041,000 ounces from 1,072,000 ounces in the March 2003 quarter, of
which 31 per cent was produced from the international operations.
Production from our Australian operations increased 13 per cent.
This was due to an increase in tons throughput at St Ives, as yield
was maintained at 2.9 grams per ton. Ghana showed a decrease in
production of 3 per cent due to a significant release of gold in
process in the previous quarter. Ore milled increased from 10.79
million tons to 10.93 million tons due to an increase in surface
tons, mainly at St Ives. This resulted in a decrease in overall
yield to 3.1 grams per ton, as compared to 3.3 grams per ton achieved
in the March 2003 quarter. Total cash costs in Rand terms increased
to R63,369 per kilogram from R60,709 per kilogram achieved last
quarter as a result of the lower production. In US Dollar terms,
total cash costs increased from US$225 per ounce to US$255 per ounce
mainly due to the stronger South African Rand. Operating costs per
ton at R204 were virtually unchanged from last quarter.
South African Operations
DRIEFONTEIN
Production at Driefontein decreased 4 per cent to 286,000 ounces.
This was due to anticipated lower surface yields compared to the
previous quarter as the high grade surface rock dump has now been
depleted. Underground tonnage increased to 964,000 tons from 958,000
tons, while surface tonnage decreased to 660,000 tons from 750,000
tons due to a settling in period for the newly commissioned mill at
No.2 plant. The decreased proportion of surface to underground ore
treated resulted in the combined yield increasing from 5.4 grams per
ton last quarter to 5.5 grams per ton this quarter. The lower
surface yield (1.6 grams per ton compared to 2.3 grams per ton last
quarter) was offset by the increase in underground yield from 7.8
grams per ton to 8.1 grams per ton this quarter.
Total cash costs increased by 4 per cent in Rand terms to R63,784 per
kilogram from R61,184 per kilogram last quarter. This was due to the
lower surface yields, as total operating costs decreased quarter on
quarter by 2 per cent despite an increase in stoping and development
volumes. In US Dollar terms total cash costs increased from US$227
per ounce to US$256 per ounce quarter on quarter as a result of the
stronger Rand, allied with the lower gold production. Operating
profit declined from R267 million (US$33 million) in the March
quarter to R174 million (US$25 million) in the current quarter also
due to the lower production and lower gold price received. Capital
expenditure was higher at R193 million (US$34 million) for the
quarter compared to R125 million (US$15 million) in the previous
quarter due to the funding of the 5E shaft refrigeration plant and
the No.1 metallurgical plant renewal programme.
KLOOF
As mentioned earlier, gold production at Kloof at 260,000 ounces was
38,000 ounces lower than the previous quarter due to lower grades and
less shifts due to the June quarter public holidays. The decline in
the grade was exacerbated by the short term mining mix variations.
The combined yield decreased quarter on quarter from 7.5 grams per
ton to 6.4 grams per ton, all due to the drop in underground grades.
The mining mix issues have been addressed and grades are improving.
Underground tonnage was flat at 973,000 tons and surface tonnage was
marginally higher at 284,000 tons, at a higher yield of 1.0 gram per
ton. Underground unit costs increased marginally from R580 per ton
to R592 per ton due to the 2 per cent increase in operating costs.
Total cash costs increased by 17 per cent in Rand terms to R70,516
per kilogram and by 26 per cent in US Dollar terms, from US$224 to
US$283 per ounce. The decrease in gold output and the lower gold
price, resulted in operating profit decreasing to R106 million (US$17
million) this quarter from R298 million (US$35 million) last quarter.
Capital expenditure was R114 million (US$22 million) for the quarter
compared to R100 million (US$12 million) in the previous quarter due
to an increase in expenditure at 4 shaft.
BEATRIX
In the Free State, production at Beatrix increased by 2 per cent to
171,000 ounces from 168,000 ounces achieved in the previous quarter.
This increase was due to increased yields at both underground and
surface operations. Underground yields increased from 4.9 grams per
ton to 5.1 grams per ton, while surface yields increased from 0.9
grams per ton to 1.1 grams per ton. Underground ore milled decreased
to 1,002,000 tons this quarter from 1,027,000 tons, while surface
tons increased 4 per cent from 175,000 tons to 182,000 tons this
quarter. Total cash costs increased 3 per cent in Rand terms to
R68,401 per kilogram and increased to US$275 per ounce from US$246
per ounce last quarter due to the stronger Rand. Operating profit
declined from R131 million (US$16 million) to R81 million (US$11
million) quarter on quarter due to the lower gold price and increased
mining costs associated with higher mining volumes, in both stoping
and development. Capital expenditure increased from R77 million
(US$9 million) last quarter to R117 million (US$21 million) this
quarter due to increased expenditure at 3 shaft and the ventilation
shaft at 2 shaft.
Metallurgical Plant Upgrades
Construction of Driefontein's 1 plant mill installation is nearing
completion, with commissioning scheduled for the end of September
2003. The Driefontein 2 plant mill installation is operating at
design capacities and optimisation of the circuit is in progress.
The installation of the carbon-in-pulp pump-cell facility at Kloof 3
plant is slightly behind schedule due to adverse ground conditions
experienced at the proposed site and commissioning has been delayed
to September 2003.
International Operations
Ghana
TARKWA
Gold production decreased by 5 per cent from 136,000 ounces in the
March quarter to 129,000 ounces in the June quarter. The March
quarter production included an 11,000 ounce release of gold inventory
from the leach pads as compared to 7,000 ounces in the June quarter.
Tons crushed reduced marginally from 3,847,000 tons last quarter to
3,723,000 tons this quarter. The yield, at 1.1 grams per ton,
remained constant. For the June quarter total operating costs
increased by 3 per cent to US$26 million (R205 million), due
primarily to increased grade control drilling, which combined with
the 3 per cent decline in throughput resulted in a 6 per cent
increase in unit operating costs from US$6.68 to US$7.06. As a
result, total cash costs increased by a similar quantum to US$213 per
ounce. Tarkwa contributed US$17 million (R131 million) to operating
profit, a decrease of 15 per cent quarter on quarter.
DAMANG
At Damang, production increased marginally to 78,000 ounces because
of an increase in mill throughput, from 1,228,000 tons to 1,309,000
tons. Yield remained constant at 1.9 grams per tons. Total cash
costs decreased from US$248 per ounce to US$223 per ounce quarter on
quarter. This decrease was due to the increased production, allied
with a gold in process credit of US$1.4 million due to the
stockpiling of some high grade ore that could not be treated during
the quarter. Unit operating costs increased to US$14.20 per ton from
US$13.80 per ton in the March quarter. The net result was an
increase in operating profit of 18 per cent to US$10 million (R81
million).
The contribution from the Ghanaian operations to the Group's
operating profit increased to 30 per cent from 22 per cent last
quarter and at R212 million (US$27 million) is 14 per cent lower than
the contribution of R248 million (US$29 million) achieved last
quarter.
Australia
ST IVES
Gold production at St Ives was 141,000 ounces, an increase of 19 per
cent when compared to the March quarter's production of 119,000
ounces. This was due to an increase in the total ore treated from
1,263,000 tons for the March quarter to 1,495,000 tons in June,
resulting from the inclusion of a tolling campaign during the
quarter, which produced 5,000 ounces from 82,000 tons treated, and
improved mill and heap leach plant throughputs. Yields remained
constant at 2.9 grams per ton. Underground mining operations
contributed one third of total gold production, similar to last
quarter. Operating costs at A$47 million (R240 million, US$30
million) were 20 per cent above the previous quarter due to costs
associated with toll treatment, the increase in ore treated from 1.3
million tons to 1.5 million tons and the inclusion of exploration
drilling of A$1.6 million, written off during the quarter. Total
cash costs were thus A$338 per ounce (US$221 per ounce) for the June
quarter compared to A$326 per ounce (US$193 per ounce) in the March
quarter. Operating costs per ton increased marginally from A$31 to
A$32 quarter on quarter. St Ives contributed A$30 million (R148
million, US$19 million) to operating profit compared to A$33 million
(R163 million, US$20 million) in the previous quarter with the
reduced gold price more than offsetting the increase in gold sales.
Capital expenditure increased from A$18 million (R78 million, US$10
million) in the March quarter to A$27 million (R144 million, US$26
million) this quarter as a result of additional exploration costs of
A$5 million and a A$3 million increase in mine development costs.
AGNEW
Gold production at Agnew was virtually unchanged at 36,000 ounces.
Production from the Crusader/Deliverer underground operations was
similar to last quarter and a low grade stockpile was used to offset
the reduction in ounces previously available from the Waroonga pit,
as operations at this pit were discontinued last quarter. This was
the main reason for the drop in reported yield from 3.8 grams per ton
last quarter to 3.3 grams per ton this quarter. The mine reported a
decrease in total cash costs in Australian Dollars from A$449 per
ounce (US$272 per ounce) last quarter, to this quarter's A$440 per
ounce (US$286 per ounce). This was due to a decline in operating
costs from A$14 million (R68 million, US$9 million) in the March
quarter to A$13 million (R63 million, US$8 million) in the current
quarter with the termination of open pit mining. The contribution to
operating profit from Agnew was negative A$0.5 million (R4 million
negative and US$nil) compared to last quarter's contribution of A$6
million (R20 million, US$3 million) due to the stronger Australian
Dollar and the lower gold price. The gold price achieved in the June
quarter was A$544 per ounce compared to A$600 per ounce in the March
quarter. Capital expenditure was little changed at just below A$7
million (R42 million, US$8 million) as development of the underground
operations at Waroonga continued.
The contribution from the Australian operations to the Group's
operating profit increased to 20 per cent from 16 per cent last
quarter and at R144 million (A$29 million, US$19 million) is 21 per
cent lower than the contribution of R183 million (A$37, US$22
million) achieved last quarter. The increase in the gain on
financial instruments and foreign debt relative to the previous
quarter resulted in an increase in net earnings to A$74 million (R364
million, US$41 million) this quarter from A$39 million (R194 million,
US$21 million) in the March 2003 quarter. Net earnings excluding
gains on financial instruments and foreign debt and exceptional items
increased to R55 million (A$17 million, US$7 million) compared to R29
million (A$6 million, US$3 million) last quarter.
DEVELOPMENT AND EXPLORATION
TARKWA
We reported in the March quarter that the decision to proceed with
the mill project had been taken. During the June quarter, the
execution project team was established, the EPCM contractor
appointed, and final design and specification of the project
completed. Ordering of long lead time items, such as the SAG mill,
have been completed and initial earth moving has commenced on the
mine site.
With an execution decision also taken on the owner mining project in
the March quarter, finalisation of fleet requirements and negotiation
with equipment and service suppliers continued during the quarter.
It is anticipated that procurement will commence in the September
quarter, with a view to the first phase of equipment arriving at
Tarkwa during the final quarter of this financial year.
DAMANG
During the quarter, the exploration program focused on testing the
conglomerate potential across the Damang license area. By quarter
end, the initial phases of exploration drilling at Chida, Chida
South, Tomento and Bonsa had been completed. Evaluation of the
drilling results is underway and it is expected that by the end of
the September quarter initial resource potential in these areas will
be assessed, while indicative economics will be understood. This
will represent a significant milestone in assessing the longer term
potential of Tarkwa style deposits at Damang.
ST IVES
The optimisation and expansion project feasibility study, examining
the viability of installing a new and expanded mill/CIP plant, is
continuing and is due for completion at the end of the first quarter
of the 2004 financial year. As previously reported, it is envisaged
that the capacity of the new plant would be some 4 million ton per
annum (mtpa), compared to the current capacity of 3.1 mpta.
Exploration drilling to support the feasibility study has been
completed.
During the 2003 financial year some 380,000 metres of exploration
drilling was undertaken at St Ives, of which one third was diamond
drilling, at a total cost just short of A$30 million. The
exploration effort at St Ives has exceeded expectations allowing the
mine to replace reserves mined during the year, while also adding a
further year to the mine's ore reserves. The exploration program for
the 2004 financial year will continue to focus on reserve expansion
as well as development of new resources and will be maintained at
current activity levels, with a commitment in excess of A$30 million
for the year.
Exploration
Exploration has more than doubled to R100 million for the June
quarter. This amount includes R43 million (US$5 million) in respect
of a write-off of all expenditure incurred in previous quarters on
exploration "farm-in" projects, in which an ownership interest has
not yet vested. Notwithstanding this, there has been a deliberate
effort to step up our exploration activities. The bulk of the
expenditure has been incurred on a diversified pipeline of early
stage projects in Africa, Australia, Bulgaria, China and South and
Central America. Subject to continued exploration success, and our
ability to finance, expenditure is expected to range between US$30
million and US$40 million per annum.
Arctic Platinum Project
On the 11th of July Outokumpu announced that it had concluded a
transaction with South Atlantic Resources, a Canadian junior mining
company, to dispose of its 49 per cent interest in the Arctic
Platinum Project, for a total consideration of
US$31 million. In terms of the Arctic Platinum Partnership
Agreement, this disposal is subject to pre-emptive rights in favour
of Gold Fields. We are reviewing the opportunity presented under
this arrangement and will make an announcement once a decision has
been made in respect of whether the pre-emptive rights will be
exercised.
BLACK ECONOMIC EMPOWERMENT TRANSACTION
On 10 June 2003 a joint cautionary announcement was issued to
shareholders stating that a R4.1 billion agreement had been reached,
in terms of which a broad based black empowerment consortium, led by
Mvelaphanda Resources Limited (Mvela), will acquire a beneficial
interest of 15 per cent of the South African gold mining assets of
Gold Fields.
This transaction represents a significant milestone towards meeting
the requirements of the Mining Charter.
The value of the assets is based on life of mine valuations and
represents fair market value. Funding will be by way of a
significant equity capital raising by Mvela, up to R300 million will
be financed by Gold Fields on commercial terms and the balance will
be financed by the raising of debt.
Mvela is in the process of undergoing a debt raising exercise. Once
funding commitments are received, a detailed terms announcement will
be made.
LEGAL
Further to our earlier report a law suit was filed by Zalumzi
Singleton Mtwesi ("Mtwesi") against Gold Fields Limited in the
supreme Court of the State of New York County of New York on May 6,
2003. Mtwesi alleges, inter alia, that during the apartheid era, he
was subjected to human rights violations. Mtwesi has filed the suit
on behalf of himself and as representative of all other victims and
all other persons similarly situated ("the plaintiffs class"). In
summary, Mtwesi and the plaintiffs class demand an order certifying
the plaintiffs class and compensatory damages from Gold Fields
Limited. The suit has not been served on Gold Fields Limited. If
and when service of the suit takes place it will be vigorously
contested. Gold Fields Limited will keep shareholders appraised of
any future developments in this matter.
COMMUNITY DEVELOPMENT PROJECTS
On 10 April 2003 a R70 million community development project, set to
produce 25 million rose stems per year for the overseas market, was
launched by Gold Fields. The project, known as Living Gold, is a
joint venture with the Industrial Development Corporation. Located
on the West Rand this project, together with several other proposals
in the pipeline, will assist in the battle against unemployment and
poverty in the area. Sustainable development is a core strategy of
Gold Fields and it is hoped that the benefits of this project will
long outlive mining in that area.
OUTLOOK
Gold production is not expected to be materially different in the
September 2003 quarter. However, should the R/US Dollar exchange
rate continue at current levels, this, together with the higher than
inflation wage increases, is expected to further erode margins. In
addition, the profit generated on sales of investments this quarter
will not be repeated in the September quarter and at the current
Australian Dollar exchange rate gains will not be generated on the
currency forward instruments. As a consequence of the above factors,
earnings are expected to be sharply lower in the September 2003
quarter.
DIVIDEND
A final dividend has been declared payable to all shareholders as
follows:
- Final dividend: 100 SA cents
- Last date to trade "CUM" dividend: 15 August 2003
- Sterling & US Dollar conversion date: 18 August 2003
- Commence trade "EX" dividend: 18 August 2003
- Record date: 22 August 2003
- Payment date: 25 August 2003
Share certificates may not be dematerialised or rematerialised
between Monday, 18 August 2003 and Friday, 22 August 2003, both dates
inclusive.
The dividend results in a payout of 59 per cent for the year based on
net earnings excluding gains and losses on financial instruments and
foreign debt as well as exceptional items. Most of the gains on the
instruments are unrealised and the realised gains, together with the
exceptional gains, being mainly profits on sales of investments, have
been applied to debt reduction.
The dividend was also influenced by the significant capital
expenditure which was R2.3 billion for the year.
BASIS OF ACCOUNTING
The unaudited results for the quarter have been prepared on the
International Financial Reporting Standards (IFRS) basis. The
detailed financial, operational and development results for the year
and the June 2003 quarter are submitted in this report.
These consolidated quarterly statements are prepared in accordance
with IFRS 34, Interim Financial Reporting. The accounting policies
are consistent with those applied at the previous year-end.
AUDIT REVIEW
The year-end results have been reviewed in terms of Rule 3.23 of the
listing requirements of the JSE Securities Exchange SA by the
Company's auditors, PricewaterhouseCoopers Inc. This unqualified
review opinion is available on request from the Company Secretary and
on the web site.
ID Cockerill
CHIEF EXECUTIVE OFFICER
1 August 2003
INCOME STATEMENT
International Financial Reporting Standard Basis
SA RAND
(Figures are in millions unless otherwise stated)
Quarter Year ended
June March June June June
2003 2003 2002 2003 2002
Revenue 2,970.7 3,351.8 3,825.7 13,892.8 12,528.4
Operating costs 2,223.8 2,171.6 2,261.2 9,142.3 7,825.9
Gold inventory change 29.7 54.1 (45.3) 10.0 (82.7)
Operating profit 717.2 1,126.1 1,609.8 4,740.5 4,785.2
Amortisation and
depreciation 306.4 341.3 274.6 1,340.9 978.9
Net operating profit 410.8 784.8 1,335.2 3,399.6 3,806.3
Finance income 94.8 97.1 146.9 239.8 177.3
- Net interest received
and investment income 28.6 41.9 23.0 158.4 38.0
- Gain on foreign debt,
net of cash 66.2 55.2 123.9 81.4 139.3
Gain on financial
instruments 311.4 185.2 345.4 460.9 513.8
Other income/(cost) (20.1) 1.3 19.9 (15.8) 72.9
Exploration (100.4) (31.1) (21.2) (211.8) (92.4)
Profit before tax and
exceptional items 696.5 1,037.3 1,826.2 3,872.7 4,477.9
Exceptional gain/(loss) 271.7 177.1 (44.6) 571.8 (54.5)
Profit before taxation 968.2 1,214.4 1,781.6 4,444.5 4,423.4
Mining and income taxation 151.1 377.6 563.2 1,363.5 1,227.1
- Normal taxation (8.4) 193.7 212.7 728.6 763.2
- Deferred taxation 159.5 183.9 350.5 634.9 463.9
Profit after taxation 817.1 836.8 1,218.4 3,081.0 3,196.3
Minority interest 27.7 32.2 38.4 128.0 123.8
Net earnings 789.4 804.6 1,180.0 2,953.0 3,072.5
Exceptional items:
Profit on disposal
of St Helena - - - 121.7 -
Profit on sale of
investments 301.8 177.9 - 479.7 -
Retirement of health
care obligations (26.7) - - (26.7) -
Other (3.4) (0.8) (44.6) (2.9) (54.5)
Total exceptional items 271.7 177.1 (44.6) 571.8 (54.5)
Taxation (1.7) (16.8) - (37.7) 3.8
Net exceptional items
after tax and minorities 270.0 160.3 (44.6) 534.1 (50.7)
Net earnings per
share (cents) 167 171 251 626 662
Headline earnings 494.4 643.8 1,180.0 2,393.4 3,072.5
Headline earnings
per share (cents) 104 136 251 507 662
Diluted earnings
per share (cents) 166 169 248 621 656
Net earnings excluding
gains and losses on
financial instruments
and foreign debt, net
of cash and exceptional
items 225.9 475.9 844.9 2,010.9 2,590.1
Net earnings per share
excluding gains and losses
on financial instruments
and foreign debt, net of
cash and exceptional
items (cents) 48 101 180 426 558
Gold sold - managed
less capitalised kg 34,244 35,257 36,427 143,136 130,872
Gold price received R/kg 86,751 95,068 105,024 97,060 95,730
Total cash costs R/kg 63,369 60,709 57,935 61,766 56,662
INCOME STATEMENT
International Financial Reporting Standard Basis
US DOLLARS
(Figures are in millions unless otherwise stated)
Quarter Year ended
June March June June June
2003 2003 2002 2003 2002
Revenue 383.2 396.7 372.2 1,531.7 1,229.5
Operating costs 280.5 256.1 218.9 1,008.0 768.0
Gold inventory change 3.2 5.2 (4.0) 1.1 (8.1)
Operating profit 99.5 135.4 157.3 522.6 469.6
Amortisation and 39.0 40.0 28.4 147.8 96.1
depreciation
Net operating profit 60.5 95.4 128.9 374.8 373.5
Finance income 11.3 10.4 14.7 26.5 17.3
- Net interest received
and investment income 3.9 4.9 2.7 17.5 3.7
- Gain on foreign debt,
net of cash 7.4 5.5 12.0 9.0 13.6
Gain on financial
instruments 35.1 19.2 34.6 50.8 50.4
Other income/(cost) (2.3) 0.2 (1.2) (1.8) 7.2
Exploration (11.6) (3.7) (2.0) (23.3) (9.1)
Profit before tax and
exceptional items 93.0 121.5 175.0 427.0 439.3
Exceptional gain/(loss) 31.4 19.4 (4.4) 63.0 (5.3)
Profit before taxation 124.4 140.9 170.6 490.0 434.0
Mining and income taxation 22.8 44.6 54.6 150.3 120.4
- Normal taxation 2.8 23.5 20.8 80.3 74.9
- Deferred taxation 20.0 21.1 33.8 70.0 45.5
Profit after taxation 101.6 96.3 116.0 339.7 313.6
Minority interest 3.6 3.7 3.8 14.1 12.1
Net earnings 98.0 92.6 112.2 325.6 301.5
Exceptional items:
Profit on disposal of
St Helena 0.6 0.7 - 13.4 -
Profit on sale of
investments 34.2 18.7 - 52.9 -
Retirement of health
care obligations (3.0) - - (3.0) -
Other (0.4) - (4.4) (0.3) (5.3)
Total exceptional items 31.4 19.4 (4.4) 63.0 (5.3)
Taxation (0.4) (1.9) - (4.2) 0.4
Net exceptional items
after
tax and minorities 31.0 17.5 (4.4) 58.8 (4.9)
Net earnings per
share (cents) 21 20 24 69 65
Headline earnings 64.2 74.8 112.2 263.9 301.1
Headline earnings
per share (cents) 14 16 24 56 65
Diluted earnings
per share (cents) 21 19 24 69 64
Net earnings excluding
gains and losses on
financial instruments
and foreign debt, net
of cash and exceptional
items 34.0 57.7 80.4 221.7 254.2
Net earnings per share
excluding gains and
losses on financial
instruments and foreign
debt, net of cash and
exceptional items (cents) 8 12 17 47 55
Exchange rate - SA
Rand/US Dollar 7.74 8.38 10.51 9.07 10.19
Gold sold - managed
less capitalised ozs (000) 1,101 1,134 1,171 4,602 4,208
Gold price received $/oz 349 353 311 333 292
Total cash costs $/oz 255 225 171 212 173
BALANCE SHEETS
International Financial Reporting Standard Basis
(Figures are in millions unless otherwise stated)
SA Rand US Dollars
June June June June
2003 2002 2003 2002
Mining and mineral assets 15,371.3 15,064.6 1,973.2 1,454.1
Non-current assets 275.0 252.7 35.3 24.4
Investments 512.1 797.8 65.7 77.0
Current assets 3,059.5 4,256.2 392.7 410.9
- Cash and deposits 1,040.8 2,027.1 133.6 195.7
- Other current assets 2,018.7 2,229.1 259.1 215.2
Total assets 19,217.9 20,371.3 2,466.9 1,966.4
Shareholders' equity 11,295.5 11,095.8 1,450.0 1,071.0
Minority interest 668.2 567.1 85.8 54.7
Deferred taxation 4,279.6 3,736.5 549.4 360.7
Long-term loans 164.2 1,502.2 21.1 145.0
Environmental rehabilitation
provisions 715.3 770.2 91.8 74.3
Post-retirement health care
provisions 90.7 260.2 11.6 25.1
Current liabilities 2,004.4 2,439.3 257.2 235.6
- Other current liabilities 1,844.7 2,055.9 236.7 198.6
- Current portion of long-term
loans 159.7 383.4 20.5 37.0
Total equity and liabilities 19,217.9 20,371.3 2,466.9 1,966.4
S.A. Rand/U.S. Dollar conversion 7.79 10.36
rate
Condensed Statements of Changes in Equity
(Figures are in millions)
SA Rand US Dollars
June June June June
2003 2002 2003 2002
Balance as at the beginning of
the financial year 11,095.8 7,075.6 1,071.0 876.8
Currency translation adjustment
and other (750.9) 469.3 265.9 (162.2)
Issue of share capital 1.0 7.3 0.1 0.7
Increase in share premium 24.1 602.4 2.7 66.8
Marked to market valuation of
listed investments (281.1) 473.9 (31.0) 47.9
Dividends (1,746.4) (605.2) (184.3) (60.5)
Net earnings 2,953.0 3,072.5 325.6 301.5
Balance as at the end of June 11,295.5 11,095.8 1,450.0 1,071.0
Reconciliation of Headline Earnings with Net Earnings
(Figures are in millions unless otherwise stated)
SA Rand US Dollars
June June June June
2003 2002 2003 2002
Net earnings 2,953.0 3,072.5 325.6 301.5
Profit on disposal of St Helena (121.7) - (13.4) -
Taxation effect of profit on
disposal of St Helena 27.3 - 3.0 -
Profit on sale of investments (479.7) - (52.9) -
Taxation effect of profit on
sale of investments 19.1 - 2.1 -
Other after tax adjustments (4.6) - (0.5) -
Headline earnings 2,393.4 3,072.5 263.9 301.5
Headline earnings
per share - cents 507 662 56 65
Based on headline earnings as
given above divided by 471,814,106
(464,146,677) being the weighted
average number of ordinary
shares in issue
CASH FLOW STATEMENT
International Financial Reporting Standard Basis
(Figures are in millions)
SA RAND
Quarter Year ended
June March June June June
2003 2003 2002 2003 2002
Cash flow from operating
activities 577.1 1,213.6 1,446.2 4,101.1 4,471.5
Profit before tax and
exceptional items 696.5 1,037.3 1,826.2 3,872.7 4,477.9
Exceptional items 271.7 177.1 (44.6) 571.8 (54.5)
Amortisation and
depreciation 306.4 341.3 274.6 1,340.9 978.9
Change in working capital (40.9) 251.9 15.7 191.6 91.8
Taxation paid (123.7) (135.1) (178.3) (786.9) (308.9)
Other non-cash items (532.9) (458.9) (447.4) (1,089.0) (713.7)
Dividends paid (22.5) (707.9) (29.1) (1,798.0) (634.3)
Ordinary shareholders - (707.9) - (1,746.4) (605.2)
Minority shareholders
in subsidiaries (22.5) - (29.1) (51.6) (29.1)
Cash utilised in investing
activities (579.9) (323.3) (728.1) (1,938.3) (3,999.9)
Capital expenditure - net (684.9) (505.3) (542.5) (2,277.4) (1,560.5)
Purchase of investments (11.5) (4.0) (117.4) (63.8) (141.1)
Sale of investments 358.8 203.1 0.8 561.9 0.8
Environmental and
post-retirement health
care payments (242.3) (17.1) (69.0) (279.0) (73.9)
Disposal/(acquisition) of
operations/subsidiaries - - - 120.0 (2,225.2)
Cash flow from financing
activities (728.7) (209.9) (326.9) (1,143.6) 1,947.0
Loans raised - - - - 2,440.2
Loans repaid (704.9) (195.9) (325.9) (1,101.3) (525.8)
Minority shareholder's
loan repaid (31.0) (16.2) (20.9) (82.7) (20.9)
Shares issued 7.2 2.2 19.9 40.4 53.5
Net cash inflow/(outflow) (754.0) (27.5) 362.1 (778.8) 1,784.3
Translation adjustment (26.6) (77.0) (63.9) (207.5) 52.8
Cash at beginning of period 1,821.4 1,925.9 1,728.9 2,027.1 190.0
Cash at end of period 1,040.8 1,821.4 2,027.1 1,040.8 2,027.1
US DOLLARS
(Figures are in millions)
Quarter Year ended
June March June June June
2003 2003 2002 2003 2002
Cash flow from operating
activities 95.0 141.3 140.1 465.7 440.3
Profit before tax and
exceptional items 93.0 121.5 175.0 427.0 439.3
Exceptional items 31.4 19.4 (4.4) 63.0 (5.3)
Amortisation and 39.0 40.0 28.4 147.8 96.1
depreciation
Change in working capital (3.3) 26.3 1.5 21.1 8.9
Taxation paid (3.4) (17.3) (17.2) (73.1) (31.2)
Other non-cash items (61.7) (48.6) (43.2) (120.1) (67.5)
Dividends paid (2.9) (87.7) (2.9) (190.1) (63.4)
Ordinary shareholders - (87.7) - (184.3) (60.5)
Minority shareholders
in subsidiaries (2.9) - (2.9) (5.8) (2.9)
Cash utilised in investing
activities (61.2) (40.9) (70.4) (204.9) (386.7)
Capital expenditure - net (83.6) (59.5) (52.4) (251.1) (153.1)
Purchase of investments (1.4) (0.8) (11.4) (7.0) (13.6)
Sale of investments 50.7 21.4 0.1 72.1 0.1
Environmental and
post-retirement health
care payments (26.9) (2.0) (6.7) (30.8) (7.2)
Disposal/(acquisition)
of operations/subsidiaries - - - 11.9 (212.9)
Cash flow from financing
activities (98.2) (21.3) (31.2) (145.7) 186.8
Loans raised - - - - 235.2
Loans repaid (94.5) (20.4) (31.0) (140.4) (51.6)
Minority shareholder's
loan repaid (4.7) (1.3) (2.1) (9.8) (2.1)
Shares issued 1.0 0.4 1.9 4.5 5.3
Net cash inflow/(outflow) (67.3) (8.6) 35.6 (75.0) 177.0
Translation adjustment (22.6) 14.7 8.2 12.9 (4.8)
Cash at beginning of period 223.5 217.4 151.9 195.7 23.5
Cash at end of period 133.6 223.5 195.7 133.6 195.7
HEDGING
POLICY
The Group's policy is to remain unhedged. 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.
Gold Fields has various currency financial instruments - those remaining are
described in the schedule. It has been decided not to account for these
instruments under the hedge accounting rules of IFRS 39 and accordingly the
positions have been marked to market at the quarter and year-end.
CURRENCY FINANCIAL INSTRUMENTS
Year ended 30 June
US DOLLAR / AUSTRALIAN DOLLAR
2004 2005 2006 2007 TOTAL
Forward sales:
Amount (US Dollars) -000's 37,500 50,000 50,000 37,500 175,000
Average rate (USD/AUD) 0.4934 0.4934 0.4934 0.4934 0.4934
Zero cost collar:
Amount (US Dollars) -000's - 37,500 50,000 37,500 125,000
Average downside
protection
level (USD/AUD) - 0.5191 0.5191 0.5191 0.5191
Average upside benefit
cap (USD/AUD) - 0.4289 0.4289 0.4289 0.4289
The marked to market value of all transactions making up the positions as at
the end of June 2003 in the above table, was a positive R535.6 million (US$68.8
million). The value was based on exchange rates of ZAR/USD7.79 and USD/
AUD0.6622 and the prevailing interest rates and volatilities at the time.
Year ended 30 June
US DOLLAR / RAND
2004 2005 2006 2007 TOTAL
Forward purchases:
Amount (US Dollars) -000's 36,000 - - - 36,000
Average rate (ZAR/USD) 8.73 - - - 8.73
During the quarter, forward cover of US$36 million was purchased to hedge the
Group's commitment in respect of the Tarkwa mill and owner mining projects
approved last quarter at a forward rate of ZAR/USD8.73, which matures on 3 June
2004. The marked to market value of all transactions making up the positions in
the above table was a negative R8.6 million (US$1.1 million negative). The
value was based on an exchange rate of ZAR/USD7.79 and the prevailing interest
rates and volatilities at the time.
TOTAL CASH COSTS
(All figures are in Rand millions unless otherwise stated)
FREE STATE
Driefontein Kloof Beatrix St Helena
Operating June 2003 595.8 594.2 380.4 -
costs (1)
March 2003 605.9 584.0 364.5 -
Financial year 2,422.0 2,330.3 1,439.6 115.6
Gold in June 2003 - - - -
process
inventory
change*
March 2003 - - - -
Financial year 34.0 3.6 - -
Less: June 2003 2.8 2.3 1.4 -
Rehabilitation
costs
March 2003 2.8 2.3 1.4 -
Financial year 11.2 9.2 5.4 0.1
Production
taxes
June 2003 4.8 3.6 1.7 -
March 2003 5.2 3.4 1.7 -
Financial year 15.2 14.6 6.8 (0.2)
General and June 2003 25.9 22.2 14.9 -
admin
March 2003 36.6 22.7 16.2 -
Financial year 136.0 95.4 63.4 1.7
Cash operating June 2003 562.3 566.1 362.4 -
costs
March 2003 561.3 555.6 345.2 -
Financial year 2,293.6 2,214.7 1,364.0 114.0
Plus: June 2003 4.8 3.6 1.7 -
Production
taxes
March 2003 5.2 3.4 1.7 -
Financial year 15.2 14.6 6.8 (0.2)
Royalties June 2003 - - - -
March 2003 - - - -
Financial year - - - -
TOTAL CASH June 2003 567.1 569.7 364.1 -
COSTS (2)
March 2003 566.5 559.0 346.9 -
Financial year 2,308.8 2,229.3 1,370.8 113.8
Plus: June 2003 58.8 54.4 16.6 -
Amortisation*
March 2003 54.3 59.7 25.1 -
Financial year 231.3 222.0 85.7 -
Rehabilitation June 2003 2.8 2.3 1.4 -
March 2003 2.8 2.3 1.4 -
Financial year 11.2 9.2 5.4 0.1
TOTAL June 2003 628.7 626.4 382.1 -
PRODUCTION
COSTS (3)
March 2003 623.6 621.0 373.4 -
Financial year 2,551.3 2,460.5 1,461.9 113.9
Gold sold - June 2003 285.9 259.7 171.1 -
thousand
ounces
March 2003 297.7 298.0 168.0 -
Financial year 1,261.5 1,142.1 658.7 43.7
TOTAL CASH June 2003 256 283 275 -
COSTS - US$/oz
March 2003 227 224 246 -
Financial year 202 215 229 259
TOTAL June 2003 284 312 288 -
PRODUCTION
COSTS - US$/oz
March 2003 250 249 265 -
Financial year 223 238 245 259
TOTAL CASH COSTS
(All figures are in Rand millions unless otherwise stated)
Ghana Australia Total Mine
Tarkwa Damang St Ives Agnew Operations
Operating June 2003 204.7 146.0 239.8 62.9 2,223.8
costs (1)
March 2003 213.7 141.9 193.3 68.3 2,171.6
Financial 938.3 637.1 907.9 351.5 9,142.3
year
Gold in
process and
inventory June 2003 8.9 (14.0) 1.1 16.6 12.6
change*
March 2003 17.1 14.8 0.1 15.1 47.1
Financial 16.7 10.1 (28.5) (18.7) 17.2
year
Less: June 2003 0.2 0.3 0.1 0.1 7.2
Rehabilitation
costs
March 2003 0.2 0.3 0.1 0.1 7.2
Financial 0.9 1.3 1.9 0.7 30.7
year
Production June 2003 - - - - 10.1
taxes
March 2003 - - - - 10.3
Financial - - - - 36.4
year
General and June 2003 10.5 3.1 8.8 3.2 88.6
admin
March 2003 12.3 3.7 9.8 0.5 101.8
Financial 51.0 14.9 42.8 10.6 415.8
year
Cash operating June 2003 202.9 128.6 232.0 76.2 2,130.5
costs
March 2003 218.3 152.7 183.5 82.8 2,099.4
Financial 903.1 631.0 834.7 321.5 8,676.6
year
Plus: June 2003 - - - - 10.1
Production
taxes
March 2003 - - - - 10.3
Financial - - - - 36.4
year
Royalties June 2003 10.4 6.4 9.5 3.1 29.4
March 2003 12.2 7.0 9.1 2.4 30.7
Financial 49.0 27.2 41.4 10.4 128.0
year
TOTAL CASH June 2003 213.3 135.0 241.5 79.3 2,170.0
COSTS (2)
March 2003 230.5 159.7 192.6 85.2 2,140.4
Financial 952.1 658.2 876.1 331.9 8,841.0
year
Plus: June 2003 32.9 13.5 122.1 298.3
Amortisation*
March 2003 35.1 15.8 134.3 324.3
Financial 140.8 64.1 498.2 1,242.1
year
Rehabilitation June 2003 0.2 0.3 0.2 7.2
March 2003 0.2 0.3 0.2 7.2
Financial 0.9 1.3 2.6 30.7
year
TOTAL June 2003 246.4 148.8 443.1 2,475.5
PRODUCTION
COSTS (3)
March 2003 265.8 175.8 412.3 2,471.9
Financial 1,093.8 723.6 1,708.8 10,113.8
year
Gold sold - June 2003 129.1 78.3 141.0 35.8 1,101.0
thousand
ounces
March 2003 136.3 76.9 119.3 37.4 1,133.5
Financial 539.9 299.2 513.3 143.6 4,601.9
year
TOTAL CASH June 2003 213 223 221 286 255
COSTS - US$/oz
March 2003 202 248 193 272 225
Financial 194 243 188 255 212
year
TOTAL June 2003 247 246 324 291
PRODUCTION
COSTS - US$/oz
March 2003 233 273 314 260
Financial 223 267 287 242
year
DEFINITIONS
Total cash costs and Total production costs 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 exceptional items.
(2). Total cash costs - Operating costs less off-mine costs, including general
and administration costs, as detailed in the table above.
(3). Total production costs - Total cash costs 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 are US$1 = R7.74 and US$1 = R8.38 for the June 2003 and
March 2003 quarters respectively and an average for the year of US$1 = R9.07.
OPERATING AND FINANCIALRESULTS
INDIVIDUAL MINES
SA RAND
Operating Results
FREE
STATE
Driefontein Kloof Beatrix St Helena
Ore milled / June 2003 1,624 1,257 1,184 -
treated (000 tons)
March 2003 1,708 1,237 1,202 -
Financial year 6,370 4,838 4,722 217
Yield (grams per June 2003 5.5 6.4 4.5 -
ton)
March 2003 5.4 7.5 4.3 -
Financial year 6.0 7.3 4.3 6.3
Gold produced June 2003 8,891 8,079 5,323 -
(kilograms)
March 2003 9,259 9,268 5,224 -
Financial year 38,516 35,464 20,488 1,358
Gold sold June 2003 8,891 8,079 5,323 -
(kilograms)
March 2003 9,259 9,268 5,224 -
Financial year 39,238 35,523 20,488 1,358
Gold price June 2003 86,616 86,657 86,605 -
received
(Rand per March 2003 94,276 95,166 94,832 -
kilogram)
Financial year 97,120 97,044 96,320 106,996
Total cash costs June 2003 63,784 70,516 68,401 -
(Rand per March 2003 61,184 60,315 66,405 -
kilogram)
Financial year 58,841 62,757 66,907 83,800
Total cash costs June 2003 256 283 275 - 213
(US Dollars per March 2003 227 224 246 -
ounce)
Financial year 202 215 229 259
Total production June 2003 70,712 77,534 71,783 -
costs
(Rand per March 2003 67,351 67,005 71,478 -
kilogram)
Financial year 65,021 69,265 71,354 83,873
Operating costs June 2003 367 473 321 -
(Rand per ton)
March 2003 355 472 303 -
Financial year 380 482 305 533
Financial Results June 2003 770.1 700.1 461.0 -
(Rand million)
Revenue March 2003 872.9 882.0 495.4 -
Financial year 3,810.8 3,447.3 1,973.4 145.3
Operating costs June 2003 595.8 594.2 380.4 -
March 2003 605.9 584.0 364.5 -
Financial year 2,422.0 2,330.3 1,439.6 115.6
Gold inventory June 2003 - - - -
change
March 2003 - - - -
Financial year 38.3 4.3 - -
Operating profit June 2003 174.3 105.9 80.6 -
March 2003 267.0 298.0 130.9 -
Financial year 1,350.5 1,112.7 533.8 29.7
Amortisation of June 2003 58.8 54.4 16.6 -
mining assets
March 2003 54.3 59.7 25.1 -
Financial year 227.0 221.3 85.7 -
Net operating June 2003 115.5 51.5 64.0 -
profit
March 2003 212.7 238.3 105.8 -
Financial year 1,123.5 891.4 448.1 29.7
Other income/ June 2003 (9.2) 1.1 (5.9) 2.9
(costs)
March 2003 (4.6) 0.2 0.7 -
Financial year (10.7) 5.3 (3.8) 7.2
Profit before June 2003 106.3 52.6 58.1 2.9
taxation
March 2003 208.1 238.5 106.5 -
Financial year 1,112.8 896.7 444.3 36.9
Mining and income June 2003 10.2 8.5 26.3 8.1
taxation
March 2003 62.8 73.7 44.3 -
Financial year 370.3 287.4 185.9 27.3
- Normal taxation June 2003 (31.2) (19.2) 1.3 8.1
March 2003 52.2 76.6 1.2 -
Financial year 273.8 234.5 5.2 27.3
- Deferred June 2003 41.4 27.7 25.0 -
taxation
March 2003 10.6 (2.9) 43.1 -
Financial year 96.5 52.9 180.7 -
Exceptional items June 2003 (17.1) (8.6) (1.0) 0.7
March 2003 - - - -
Financial year (17.1) (8.6) (1.0) 123.7
Net earnings June 2003 79.0 35.5 30.8 (4.5)
March 2003 145.3 164.8 62.2 -
725.4 600.7 257.4 133.3
Financial year
Capital June 2003 193.0 113.6 116.5 -
expenditure (Rand
million)
March 2003 124.8 99.8 76.6 -
Financial year 572.8 419.7 373.6 -
Planned for next 178.9 170.5 131.7 -
six months to
December 2003
OPERATING AND FINANCIALRESULTS
INDIVIDUAL MINES
SA RAND
Operating Results
Ghana Australia Total Mine
Operations
Tarkwa Damang St Ives Agnew
Ore milled / June 2003 3,723 1,309 1,495 333 10,925
treated (000
tons)
March 2003 3,847 1,228 1,263 307 10,792
Financial 15,210 4,877 5,486 1,268 42,988
year
Yield (grams per June 2003 1.1 1.9 2.9 3.3 3.1
ton)
March 2003 1.1 1.9 2.9 3.8 3.3
Financial 1.1 1.9 2.9 3.5 3.3
year
Gold produced June 2003 4,015 2,435 4,386 1,115 34,244
(kilograms)
March 2003 4,240 2,393 3,711 1,162 35,257
Financial 16,792 9,305 15,966 4,466 142,355
year
Gold sold June 2003 4,015 2,435 4,386 1,115 34,244
(kilograms)
March 2003 4,240 2,393 3,711 1,162 35,257
Financial 16,792 9,305 15,966 4,466 143,136
year
Gold price June 2003 86,102 87,556 87,415 87,175 86,751
received
(Rand per March 2003 95,873 96,155 95,715 94,406 95,068
kilogram)
Financial 96,897 97,002 97,232 97,156 97,060
year
Total cash costs June 2003 53,126 55,441 55,062 71,121 63,369
(Rand per March 2003 54,363 66,736 51,900 73,322 60,709
kilogram)
Financial 56,700 70,736 54,873 74,317 61,766
year
Total cash costs June 2003 213 223 221 286 255
(US Dollars per March 2003 202 248 193 272 225
ounce)
Financial 194 243 188 255 212
year
Total production June 2003 61,370 61,109 80,549 72,290
costs
(Rand per March 2003 62,689 73,464 84,609 70,111
kilogram)
Financial 65,138 77,765 83,634 70,659
year
Operating costs June 2003 55 112 160 189 204
(Rand per ton)
March 2003 56 116 153 222 201
Financial 62 131 165 277 213
year
Financial Results June 2003 345.7 213.2 383.4 97.2 2,970.7
(Rand million)
Revenue March 2003 406.5 230.1 355.2 109.7 3,351.8
Financial 1,627.1 902.6 1,552.4 433.9 13,892.8
year
Operating costs June 2003 204.7 146.0 239.8 62.9 2,223.8
March 2003 213.7 141.9 193.3 68.3 2,171.6
Financial 938.3 637.1 907.9 351.5 9,142.3
year
Gold inventory June 2003 10.0 (14.0) (4.8) 38.5 29.7
change
March 2003 18.7 14.8 (0.9) 21.5 54.1
Financial 16.3 10.1 (46.0) (13.0) 10.0
year
Operating profit June 2003 131.0 81.2 148.4 (4.2) 717.2
March 2003 174.1 73.4 162.8 19.9 1,126.1
Financial 672.5 255.4 690.5 95.4 4,740.5
year
Amortisation of June 2003 31.8 13.5 106.1 281.2
mining assets
March 2003 33.5 15.8 129.0 317.4
Financial 141.2 64.1 510.0 1,249.3
year
Net operating June 2003 99.2 67.7 38.1 436.0
profit
March 2003 140.6 57.6 53.7 808.7
Financial 531.3 191.3 275.9 3,491.2
year
Other income/ June 2003 1.3 (3.5) 377.4 364.1
(costs)
March 2003 (0.5) (3.2) 235.3 227.9
Financial 4.2 36.9 468.4 507.5
year
Profit before June 2003 100.5 64.2 415.5 800.1
taxation
March 2003 140.1 54.4 289.0 1,036.6
Financial 535.5 228.2 744.3 3998.7
year
Mining and income June 2003 44.2 23.5 60.1 180.9
taxation
March 2003 57.7 25.4 94.9 358.8
Financial 220.6 99.1 185.1 1,375.7
year
- Normal taxation June 2003 15.1 8.5 12.6 (4.8)
March 2003 15.6 8.3 11.5 165.4
Financial 61.2 32.9 51.8 686.7
year
- Deferred June 2003 29.1 15.0 47.5 185.7
taxation
March 2003 42.1 17.1 83.4 193.4
Financial 159.4 66.2 133.3 689.0
year
Exceptional items June 2003 (1.3) - 8.1 (19.2)
March 2003 - - - -
Financial (1.3) - 8.1 103.8
year
Net earnings June 2003 55.0 40.7 363.5 600.0
March 2003 82.4 29.0 194.1 677.8
Financial 313.6 129.1 567.3 2,726.8
year
Capital June 2003 56.1 3.9 144.0 42.4 669.5
expenditure (Rand
million)
March 2003 73.8 3.3 77.7 29.9 485.9
Financial 207.4 14.4 464.5 164.9 2,217.3
year
Planned for next 410.5 8.4 272.3 65.4 1,237.7
six months to
December 2003
# 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.
OPERATING AND FINANCIAL RESULTS
INDIVIDUAL MINES
US DOLLAR CONVERSION
Operating Results
FREE STATE
Driefontein Kloof Beatrix St Helena
Ore milled / June 2003 624 1,257 1,184 -
treated
(000 tons) March 2003 1,708 1,237 1,202 -
Financial year 6,370 4,838 4,722 217
Yield (ounces
per ton)
June 2003 0.176 0.207 0.145 -
March 2003 0.174 0.241 0.140 -
Financial year 0.194 0.236 0.139 0.201
Gold produced
(000 ounces)
June 2003 285.9 259.7 171.1 -
March 2003 297.7 298.0 168.0 -
Financial year 1,238.3 1,140.2 658.7 43.7
Gold sold (000
ounces)
June 2003 285.9 259.7 171.1 -
March 2003 297.7 298.0 168.0 -
Financial year 1,261.5 1,142.1 658.7 43.7
Gold price June 2003 348 348 348 -
received
(US Dollars March 2003 350 353 352 -
per ounce)
Financial year 333 333 330 330
Total cash June 2003 256 283 275 -
costs
(US Dollars March 2003 227 224 246 -
per ounce)
Financial year 202 215 229 259
Total June 2003 284 312 288 -
production
costs
(US Dollars March 2003 250 249 265 -
per ounce)
Financial year 223 238 245 259
Operating June 2003 47 61 42 -
costs
(US Dollars March 2003 42 56 36 -
per ton)
Financial year 42 53 34 53
Financial June 2003 100.4 91.3 58.5 0.7
Results (US$
million)
Revenue March 2003 104.4 103.6 58.0 0.9
Financial year 420.2 380.1 217.6 16.0
Operating June 2003 75.0 74.4 47.4 0.6
costs
March 2003 70.8 68.2 42.4 0.7
Financial year 267.0 256.9 158.7 12.7
Gold inventory June 2003 0.2 - - -
change
March 2003 0.2 - - -
Financial year 4.2 0.5 - -
Operating June 2003 25.2 16.9 11.2 0.1
profit
March 2003 33.4 35.4 15.7 0.2
Financial year 148.9 122.7 58.9 3.3
Amortisation June 2003 7.3 6.9 2.2 -
of mining
assets
March 2003 6.4 6.9 2.9 -
Financial year 25.0 24.4 9.4 -
Net operating
profit
June 2003 17.9 10.0 9.0 0.1
March 2003 27.0 28.5 12.8 0.2
Financial year 123.9 98.3 49.4 3.3
Other income/ June 2003 (1.0) 0.1 (0.6) 0.4
(costs)
March 2003 (0.4) - - -
Financial year (1.2) 0.6 (0.4) 0.8
Profit before June 2003 16.9 10.2 8.4 0.5
taxation
March 2003 26.5 28.6 12.8 0.2
Financial year 122.7 98.9 49.0 4.1
Mining and June 2003 3.0 2.4 3.7 1.0
income
taxation
March 2003 8.3 8.9 5.3 0.1
Financial year 40.8 31.7 20.5 3.0
- Normal June 2003 (1.9) (0.8) 0.2 1.0
taxation
March 2003 6.9 9.1 0.1 0.1
Financial year 30.2 25.9 0.6 3.0
- Deferred June 2003 4.9 3.2 3.5 -
taxation
March 2003 1.3 (0.1) 5.2 -
Financial year 10.6 5.8 19.9 -
Exceptional June 2003 (1.9) (0.9) (0.1) 0.7
items
March 2003 - - - 0.7
Financial year (1.9) (0.9) (0.1) 13.6
Net earnings June 2003 12.0 6.8 4.6 0.2
March 2003 18.3 19.6 7.5 0.8
Financial year 80.0 66.2 28.4 14.7
Capital June 2003 33.6 21.7 20.9 -
expenditure
(US$ million) March 2003 14.6 11.7 9.1 -
Financial year 73.5 53.9 48.0 -
Planned for 23.0 21.9 16.9 -
next six
months to
December 2003
INDIVIDUAL MINES
US DOLLAR CONVERSION
Operating Results
Ghana Australia Total Mine
Operations
Tarkwa Damang St Ives Agnew
Ore milled / June 2003 3,723 1,309 1,495 333 10,925
treated
(000 tons) March 2003 3,847 1,228 1,263 307 10,792
Financial 15,210 4,877 5,486 1,268 42,988
year
Yield (ounces June 2003 0.035 0.060 0.094 0.108 0.101
per ton)
March 2003 0.035 0.063 0.094 0.122 0.105
Financial 0.035 0.061 0.094 0.113 0.106
year
Gold produced June 2003 129.1 78.3 141.0 35.8 1,101.0
(000 ounces)
March 2003 136.3 76.9 119.3 37.4 1,133.5
Financial 539.9 299.2 513.3 143.6 4,576.8
year
Gold sold June 2003 129.1 78.3 141.0 35.8 1,101.0
(000 ounces)
March 2003 136.3 76.9 119.3 37.4 1,133.5
Financial 539.9 299.2 513.3 143.6 4,601.9
year
Gold price June 2003 346 352 351 350 349
received
(US Dollars March 2003 356 357 355 350 353
per ounce)
Financial 332 333 333 333 333
year
Total cash June 2003 213 223 221 286 255
costs
(US Dollars March 2003 202 248 193 272 225
per ounce)
Financial 194 243 188 255 212
year
Total June 2003 247 246 324 291
production
costs
(US Dollars March 2003 233 273 314 260
per ounce)
Financial 223 267 287 242
year
Operating June 2003 7 14 21 24 26
costs
(US Dollars March 2003 7 14 18 27 24
per ton)
Financial 7 14 18 31 23
year
Financial June 2003 44.7 27.0 48.1 12.5 383.2
Results (US$
million)
Revenue March 2003 47.8 26.9 42.2 12.8 396.7
Financial 179.4 99.5 171.2 47.8 1,531.7
year
Operating June 2003 26.3 18.6 29.9 8.3 280.5
costs
March 2003 25.5 16.9 23.1 8.5 256.1
Financial 103.5 70.2 100.1 38.8 1,008.0
year
Gold June 2003 1.2 (1.4) (0.8) 4.0 3.2
inventory
change
March 2003 1.9 1.6 (0.3) 1.8 5.2
Financial 1.8 1.1 (5.1) (1.4) 1.1
year
Operating June 2003 17.2 9.8 19.0 0.1 99.5
profit
March 2003 20.4 8.4 19.5 2.5 135.4
Financial 74.1 28.2 76.1 10.5 522.6
year
Amortisation June 2003 4.1 1.8 13.8 36.0
of mining
assets
March 2003 4.0 1.8 15.1 37.1
Financial 15.6 7.1 56.2 137.7
year
Net operating June 2003 13.2 8.0 5.4 63.6
profit
March 2003 16.5 6.5 6.8 98.3
Financial 58.6 21.1 30.4 384.9
year
Other income/ June 2003 0.1 (0.2) 42.1 40.9
(costs)
March 2003 - (0.1) 23.9 23.4
Financial 0.5 4.1 51.6 56.0
year
Profit before June 2003 13.3 7.8 47.4 104.5
taxation
March 2003 16.5 6.5 30.7 121.7
Financial 59.0 25.2 82.1 440.9
year
Mining and June 2003 5.8 3.0 7.3 26.2
income
taxation
March 2003 6.7 2.9 10.1 42.4
Financial 24.3 10.9 20.4 151.7
year
- Normal June 2003 1.9 1.1 1.6 3.1
taxation
March 2003 1.8 0.9 1.4 20.4
Financial 6.7 3.6 5.7 75.7
year
- Deferred June 2003 3.9 1.9 5.7 23.1
taxation
March 2003 4.9 2.0 8.8 22.0
Financial 17.6 7.3 14.7 76.0
year
Exceptional June 2003 (0.1) - 0.9 (1.5)
items
March 2003 - - - 0.7
Financial (0.1) - 0.9 11.4
year
Net earnings June 2003 7.3 4.8 41.0 76.7
March 2003 9.8 3.5 20.5 80.0
Financial 34.6 14.2 62.5 300.6
year
Capital June 2003 10.7 0.7 25.9 8.3 121.8
expenditure
(US$ million)
March 2003 8.2 0.4 9.6 3.7 57.4
Financial 26.6 1.8 59.6 21.2 284.6
year
Planned for 52.7 1.1 35.0 8.4 158.9
next six
months to
December 2003
Average exchange rates are US$1 = R7.74 and US$1 = R8.38 for the June 2003 and
March 2003 quarters respectively. Year to date rate US$1=R9.07
# 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.
UNDERGROUND AND SURFACE
SA RAND AND METRIC UNITS
Operating Results
FREE STATE
Driefontein Kloof Beatrix St Helena
Ore milled /
treated (000 ton)
- underground June 2003 964 973 1,002 -
March 2003 958 975 1,027 -
Financial year 3,898 3,727 4,053 217
- surface June 2003 660 284 182 -
March 2003 750 262 175 -
Financial year 2,472 1,111 669 -
- total June 2003 1,624 1,257 1,184 -
March 2003 1,708 1,237 1,202 -
Financial year 6,370 4,838 4,722 217
Yield (grams per
ton)
- underground June 2003 8.1 8.0 5.1 -
March 2003 7.8 9.3 4.9 -
Financial year 8.4 9.3 4.9 6.3
- surface June 2003 1.6 1.0 1.1 -
March 2003 2.3 0.7 0.9 -
Financial year 2.3 0.7 0.9 -
- combined June 2003 5.5 6.4 4.5 -
March 2003 5.4 7.5 4.3 -
Financial year 6.0 7.3 4.3 6.3
Gold produced
(kilograms)
- underground June 2003 7,806 7,786 5,123 -
March 2003 7,505 9,072 5,066 -
Financial year 32,886 34,634 19,909 1,358
- surface June 2003 1,085 293 200 -
March 2003 1,754 196 158 -
Financial year 5,630 830 579 -
- total June 2003 8,891 8,079 5,323 -
March 2003 9,259 9,268 5,224 -
Financial year 38,516 35,464 20,488 1,358
Gold sold
(kilograms)
- underground June 2003 7,806 7,786 5,123 -
March 2003 7,505 9,072 5,066 -
Financial year 33,608 34,693 19,909 1,358
- surface June 2003 1,085 293 200 -
March 2003 1,754 196 158 -
Financial year 5,630 830 579 -
- total June 2003 8,891 8,079 5,323 -
March 2003 9,259 9,268 5,224 -
Financial year 39,238 35,523 20,488 1,358
Operating costs
(Rand per ton)
- underground June 2003 577 592 376 -
March 2003 582 580 349 -
Financial year 580 606 350 533
- surface June 2003 59 63 22 -
March 2003 65 71 35 -
Financial year 64 66 30 -
- total June 2003 367 473 321 -
March 2003 355 472 303 -
Financial year 380 482 305 533
UNDERGROUND AND SURFACE
SA RAND AND METRIC UNITS
Operating Results
Ore milled / treated (000 ton)
Total Mine
Ghana Australia Operations
Tarkwa Damang St Ives Agnew
- underground June 2003 - - - - 2,939
March 2003 - - - - 2,960
Financial - - - - 11,895
year
- surface June 2003 3,723 1,309 1,495 333 7,986
March 2003 3,847 1,228 1,263 307 7,832
Financial 15,210 4,877 5,486 1,268 31,093
year
- total June 2003 3,723 1,309 1,495 333 10,925
March 2003 3,847 1,228 1,263 307 10,792
Financial 15,210 4.877 5,486 1,268 42,988
year
Yield (grams per
ton)
- underground June 2003 - - - - 7.0
March 2003 - - - - 7.3
Financial - - - - 7.5
year
- surface June 2003 1.1 1.9 2.9 3.3 1.7
March 2003 1.1 1.9 2.9 3.8 1.7
Financial 1.1 1.9 2.9 3.5 1.7
year
- combined June 2003 1.1 1.9 2.9 3.3 3.1
March 2003 1.1 1.9 2.9 3.8 3.3
Financial 1.1 1.9 2.9 3.5 3.3
year
Gold produced
(kilograms)
- underground June 2003 - - - - 20,715
March 2003 - - - - 21,643
Financial - - - - 88,787
year
- surface June 2003 4,015 2,435 4,386 1,115 13,529
March 2003 4,240 2,393 3,711 1,162 13,614
Financial 16,792 9,305 15,966 4,466 53,568
year
- total June 2003 4,015 2,435 4,386 1,115 34,244
March 2003 4,240 2,393 3,711 1,162 35,257
Financial 16,792 9,305 15,966 4,466 142,355
year
Gold sold
(kilograms)
- underground June 2003 - - - - 20,715
March 2003 - - - - 21,643
Financial - - - - 89,568
year
- surface June 2003 4,015 2,435 4,386 1,115 13,529
March 2003 4,240 2,393 3,711 1,162 13,614
Financial 16,792 9,305 15,966 4,466 53,568
year
- total June 2003 4,015 2,435 4,386 1,115 34,244
March 2003 4,240 2,393 3,711 1,162 35,257
Financial 16,792 9,305 15,966 4,466 143,136
year
Operating costs
(Rand per ton)
- underground June 2003 - - - - 514
March 2003 - - - - 500
Financial - - - - 509
year
- surface June 2003 55 112 160 189 89
March 2003 56 116 153 222 88
Financial 62 131 165 277 99
year
- total June 2003 55 112 160 189 204
March 2003 56 116 153 222 201
Financial 62 131 165 277 213
year
# Australia operations are defined as surface and near surface operations.
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
Driefontein
June 2003
quarter
Reef Carbon Leader Main VCR
Advanced (m) 6,465 1,165 1,678
Advanced on (m) 1,044 281 126
reef
Sampled (m) 975 279 63
Channel width (cm) 127 85 93
Average value - (g/t) 14.4 6.9 6.6
- (cm.g/t) 1,824 587 611
Driefontein
March 2003
quarter
Reef Carbon Leader Main VCR
Advanced (m) 6,641 1,121 1,355
Advanced on (m) 1,151 405 132
reef
Sampled (m) 1,017 378 120
Channel width (cm) 121 97 55
Average value - (g/t) 14.6 6.4 25.0
- (cm.g/t) 1,775 625 1,382
Driefontein
Year ended
30 June 2003
Reef Carbon Leader Main VCR
Advanced (m) 25,076 4,060 6,542
Advanced on (m) 3,966 1,007 583
reef
Sampled (m) 3,648 1,017 468
Channel width (cm) 115 103 75
Average value - (g/t) 13.7 6.4 20.0
- (cm.g/t) 1,574 657 1,505
Kloof
June 2003
quarter
Reef Kloof Main VCR
Advanced (m) 451 2,426 9,488
Advanced on (m) 205 635 1,876
reef
Sampled (m) 177 480 1,416
Channel width (cm) 83 94 122
Average value - (g/t) 1.7 12.0 15.7
- (cm.g/t) 139 1,128 1,917
Kloof
March 2003
quarter
Reef Kloof Main VCR
Advanced (m) 94 2,074 8,718
Advanced on (m) 45 510 1,455
reef
Sampled (m) 18 423 1,215
Channel width (cm) 175 94 96
Average value - (g/t) 5.2 11.4 19.6
- (cm.g/t) 917 1,069 1,883
Kloof
Year ended
30 June 2003
Reef Kloof Main VCR
Advanced (m) 725 6,541 42,513
Advanced on (m) 309 1,611 6,939
reef
Sampled (m) 249 1,266 5,268
Channel width (cm) 80 86 104
Average value - (g/t) 4.9 12.0 19.6
- (cm.g/t) 396 1,031 2,042
Beatrix
June 2003 quarter
Reef Beatrix Kalkoekrans
Advanced (m) 9,088 2,230
Advanced on reef (m) 1,811 582
Sampled (m) 1,485 540
Channel width (cm) 87 103
Average value - (g/t) 14.2 9.9
- (cm.g/t) 1,236 1,020
Beatrix
March 2003
quarter
Reef Beatrix Kalkoekrans
Advanced (m) 8,877 2,256
Advanced on reef (m) 1,698 506
Sampled (m) 1,545 504
Channel width (cm) 61 105
Average value - (g/t) 14.0 8.0
- (cm.g/t) 853 798
Beatrix
Year ended
30 June 2003
Reef Beatrix Kalkoekrans
Advanced (m) 36,663 9,506
Advanced on reef (m) 6,292 1,763
Sampled (m) 5,619 1,716
Channel width (cm) 73 108
Average value - (g/t) 14.7 9.4
- (cm.g/t) 1,071 1,016
CORPORATE OFFICE
Gold Fields Limited
24 St Andrews Road
Parktown
Johannesburg
2193
Postnet Suite 252
Private Bag x 30500
Houghton 2041
Tel: +27 11 644-2400
Fax: +27 11 484-0626
London Office
St James' Corporate Services Limited
6 St James' Place
London SW1A 1 NP
Tel: +944 207 499-3916
Fax: +944 207 491-1989
DIRECTORS
C M T Thompson^ - Chairman)
A J Wright - (Deputy Chairman)
I D Cockerill * - (Chief Executive Officer)
G J Gerwel
N J Holland * - (Chief Financial Officer)
J M McMahon *
G R Parker #
R L Pennant-Rea *
P J Ryan
T M G Sexwale
B R van Rooyen
C I von Christierson
^ Canadian
* British
# USA
COMPANY SECRETARY
C Farrel
24 St Andrews Road
Parktown
Johannesburg
2193
Postnet Suite 252
Private Bag x 30500
Houghton 2041
Tel: +27 11 644-2406
Fax: +27 11 484-0626
INVESTOR RELATIONS
Europe & South Africa
Willie Jacobsz
Tel: +27 11 644-2460
Fax: +27 11 484-0639
E-mail: investors@goldfields.co.za
North America
Cheryl A. Martin
Tel: +1 303 796-8683
Fax: +1 303 796-8293
E-mail: camartin@gfexpl.com
TRANSFER OFFICES
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Ground Floor
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Johannesburg, 2001
P O Box 61051
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Fax: 27 11 370-5271
London
Capita Registrars
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34 Beckenham Road
Beckenham Kent BR3 4TU
Tel: +944 208 639-2000
Fax: +944 208 658-3430
AMERICAN DEPOSITARY RECEIPT BANKER
United States
Bank of New York
101 Barclay Street
New York N.Y. 10286
USA
Tel: +91 212 815-5133
Fax: +91 212 571-3050
United Kingdom
Bank of New York
46 Berkley Street
London
W1X 6AA
Tel: +944 207 322-6341
Fax: +944 207 322-6028
END
