GOLDFIELDS
Gold Fields Limited
Incorporated in the Republic of South Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN: ZAE 000018123
NEWS RELEASE Q2 F2004 RESULTS
Quarter Ended 31 December 2003
-Unaudited-
STOCK DATA
Number of shares in issue
- at 31 December 2003 491,147,202
- average for the quarter 484,511,921
Free Float 100%
ADR Ratio 1:1
Bloomberg / Reuters GFISJ / GFLJ.J
JSE SECURITIES EXCHANGE SOUTH AFRICA (GFI)
Range - Quarter ZAR81.90 ZAR105.01
Average Volume - Quarter 1,447,300 shares / day
NYSE (GFI)
Range - Quarter US$12.32 US$15.33
Average Volume - Quarter 1,565,600 shares / day
INVESTOR RELATIONS
Europe & South Africa
Willie Jacobsz Nerina Bodasing
Tel : +27 11 644-2460 Tel : +27 11 644-2630
Fax: +27 11 484-0639 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
Second Quarter Headline Earnings increased 52 per cent
to R249 million (US$36 million)
JOHANNESBURG. 29 January 2004 - Gold Fields Limited (NYSE & JSE: GFI) today
announced December 2003 quarter net earnings of R277 million (57 cents per
share) compared to net earnings of R421 million (89 cents per share) in the
September 2003 quarter and R817 million (173 cents per share) for the December
quarter in 2002. In US dollar terms the December 2003 quarter net earnings were
$42 million (US$0.09 per share) compared with $57 million (US$0.12 per share)
in the September 2003 quarter and $83 million (US$0.18 per share) for the
December quarter in 2002.
Second quarter highlights included:
* Attributable gold production of 1.05 million ounces achieved, ahead of the
September quarter.
* Total cash costs decreased 1 per cent in rand terms to R66,991 per kilogram
and increased 9 per cent in US dollar terms to $308 per ounce.
* Operating profit of R545 million (US$80 million), 4 per cent down in rand
terms from the previous quarter as a result of the lower rand gold price. In US
dollar terms a 5 per cent improvement was achieved.
* Global diversification continues with value adding acquisitions in both China
and South America.
Ian Cockerill, Chief Executive Officer of Gold Fields said:
"During the December quarter all operations performed satisfactorily and to
expectation, with the exception of Driefontein which was adversely affected by
fires at 4 west and 5 west shafts in the high grade areas. Fortunately, the
fires have now been contained and Driefontein is expected to return to planned
performance levels over the next two quarters."
"In line with the previously stated desire to deal with a firmer yet volatile
rand operating environment, this quarter has been characterised by a reduction
in lower grade mining, an increase in old gold recovery and a critical review
in cost expenditures all aimed at increasing margins during this challenging
period. The company is on target to reposition the South African assets by the
end of the March quarter, but benefits have already been seen at the various
mines."
"We are pleased with the response to the international placing of US$225
million concluded during the December quarter as this provides funds for both
organic growth and acquisitions."
Salient features
SA Rand
Six months to Quarter
Dec Dec Dec Sept Dec
2002 2003 2002 2003 2003
Gold produced* kg 69,093 64,779 33,930 32,299 32,480
Total cash costs R/kg 61,528 67,277 61,853 67,566 66,991
Tons milled 000 21,271 23,137 10,560 11,497 11,640
Revenue R/kg 102,808 85,511 100,969 86,184 84,842
Operating costs R/ton 223 203 222 204 202
Operating profit Rm 2,897 1,114 1,319 570 545
Net earnings Rm 1,359 699 817 421 277
Net earnings SA c.p.s. 288 146 173 89 57
Headline earnings Rm 1,255 413 714 164 249
Headline earnings SA c.p.s. 266 86 151 35 51
Net earnings
excluding
gains and losses
on
financial
instruments
and financial
instruments and
foreign debt net
of cash and
exceptional items Rm 1,309 247 574 136 111
Net earnings
excluding
gains and losses
on
financial
instruments
and financial
instruments and
foreign debt net
of cash and
exceptional items SA c.p.s. 278 52 122 29 23
*Attributable All companies wholly owned except for Ghana (71.1%).
Salient features
US Dollars
Quarter Six months
to
Dec Sept Dec Dec Sept
2003 2003 2002 2003 2002
Gold produced* oz (000) 1,045 1,038 1,091 2,083 2,221
Total cash costs $/oz 308 282 197 295 190
Tons milled 000 11,640 11,497 10,560 23,137 21,271
Revenue $/oz 390 360 321 375 318
Operating costs $/ton 30 27 23 29 22
Operating profit $m 80 77 136 157 288
Net earnings $m 42 57 83 98 135
Net earnings US 9 12 18 21 29
c.p.s.
Headline earnings $m 36 22 72 58 125
Headline earnings US 7 5 15 12 26
c.p.s.
Net earnings
excluding
gains and losses on
financial
instruments
and financial
instruments and
foreign debt net
of cash and
exceptional items 17 18 59 35 130
$m
Net earnings
excluding
gains and losses on
financial
instruments
and financial
instruments and
foreign debt net
of cash and
exceptional items US 3 4 13 7 28
c.p.s.
*Attributable All companies wholly owned except for Ghana (71.1%).
Overview
In line with expectations, earnings were lower than the September 2003 quarter,
at R277 million (US$42 million). This is due to the stronger rand and a
reduction in exceptional earnings, arising mainly from the profit on the sale
of certain mineral rights and associated assets to AngloGold included in the
September quarter. The sale of these mineral rightsbolstered earnings by R240
million (US$32 million) in the September quarter.
The Group's attributable gold production for the December quarter at 1.045
million ounces is marginally above the September quarter. The decrease at
Driefontein, due to the 4 west and 5 west fires, was offset by increased
production at the other operations.
Total cash costs in the December quarter decreased marginally from R67,566 per
kilogram to R66,991 per kilogram due to the increased production and stronger
rand. The increase in US dollar terms was 9 per cent from US$282 per ounce to
US$308 per ounce due to the rand strengthening 9 per cent from R7.44 to R6.76
to the US dollar.
Health and safety
During the quarter the lost day injury frequency rate at the South African
operations improved from 15.8 to 15.4, the serious injury frequency rate
regressed from 7.2 to 7.9 and the fatal injury frequency rate regressed from
0.31 to 0.34. Management is disappointed with this regression from what has
previously been an improving trend. All efforts are being directed towards
reversing this phenomenon.
Financial Review
Quarter ended 31 December 2003
compared to quarter ended
30 September 2003
REVENUE
Revenue is marginally lower than the previous quarter due to a lower rand gold
price as a consequence of a 9 per cent strengthening of the average rand/US
dollar exchange rate from 7.44 in the September 2003 quarter to 6.76 this
quarter. The US dollar gold price of US$390 per ounce was however 8 per cent
higher than the US$360 per ounce achieved in the September quarter. The
resultant rand gold price of R84,842 per kilogram is thus 2 per cent lower than
the R86,184 per kilogram achieved last quarter. The lower gold price was partly
offset by the higher gold sales at 34,451 kilograms (1,108,000 ounces) as
compared to 34,257 kilograms (1,101,000 ounces) last quarter. This resulted in
revenue of R2,923 million (US$431 million) compared to R2,952 million (US$397
million) last quarter.
OPERATING COSTS
Operating costs at R2,355 million (US$347 million) for the quarter were less
than 1 per cent higher than the previous quarter's costs of R2,342 million
(US$315 million). At the South African operations, costs increased 1 per cent
compared to the previous quarter. This was mainly due to the additional costs
at Driefontein, due to the opening up of additional areas as a result of the
underground fires. Costs at Kloof and Beatrix were unchanged from last quarter
despite increases in production. At the international operations costs were
flat in rand terms at R655 million (US$96 million) for the quarter.
OPERATING PROFIT MARGIN
The net effect of the lower revenue and marginally higher costs, partly offset
by a lower gold in process charge resulting from a reduced net release of
inventory at the international operations, was a decrease in operating profit
from R570 million (US$77 million) in the September quarter to R545 million
(US$80 million) this quarter.
The operating margin for the Group remained at 19 per cent for the current
quarter. This is despite a decline in margins at the South African operations
from 11 per cent in the previous quarter to 7 per cent in the current quarter.
The decline at the South African operations resulted from reduced production
levels at Driefontein and the lower rand gold price. The margin at the
international operations increased from 34 per cent last quarter to 38 per cent
this quarter, with all operations showing an improvement.
AMORTISATION
Amortisation was slightly higher than the previous quarter at R308 million
(US$45 million), in line with the increased production.
FINANCIAL INSTRUMENTS AND DEBT
The Australian dollar once again strengthened against the US dollar, from 68.14
US cents at the end of the September quarter to 73.41 US cents at the end of
the current quarter. Outstanding debt at the Australian operations reduced from
US$19 million at the end of the September quarter to US$11 million by the end
of December. A small loss on the debt, net of cash in Australia of R5 million
(US$1 million) due to the revaluation of cash balances in US dollars, was
offset by an exchange gain of R65 million (US$9 million) on funds held offshore
arising from the share issue last quarter. The net result is an exchange gain
of R60 million (US$8 million) for the quarter.
As previously reported, the Australian operations established currency
financial instruments to protect their underlying cash flows against a possible
strengthening of the Australian dollar against the United States dollar. At the
quarter end, US$288 million was outstanding under these instruments. Gains on
these financial instruments amounted to R143 million (US$20 million) in the
current quarter compared to R68 million (US$9 million) in the previous quarter.
At the end of the December quarter, the marked to market value of these US
dollar/Australian dollar financial instruments was a positive R706 million
(US$103 million).
The gain on the above financial instruments was partially offset by an
unrealised loss of R23 million (US$3 million) on the SA rand/US dollar forward
cover of US$50 million. These forward purchases are to hedge the Group's
commitment in respect of the Tarkwa mill and owner mining projects approved at
US$159 million, to the extent that these projects are funded from South African
sources. During the quarter US$10 million was purchased in addition to the
US$40 million held at the end of the September quarter. In the September
quarter the unrealised loss amounted to R32 million (US$4 million). The
weighted average forward rate in respect of the forward cover is R8.4264 to the
US dollar and maturity is on 3 June 2004. The marked to market value of this
forward purchase at the end of the quarter was a negative R64 million (US$9
million negative).
On 7 January 2004, Gold Fields Australia entered into equal and opposite
transactions regarding the Australian dollar/United States dollar currency
financial instruments. The existing forward purchases of Australian dollars and
the put and call options were closed out by entering into equal and opposite
transactions. The close out of the outstanding open position of US$275 million
was at an average spot rate of 0.7670 US$/AU$. These transactions locked in
gross profit amounting to US$115.7 million and the underlying cash receipts
were deferred to match the maturity dates of the original transactions. An
amount of US$102.8 million has already been accounted for up until the end of
December 2003. In addition, in order that the Group is able to participate in
further Australian dollar appreciation a strip of quarterly maturing Australian
dollar/US dollar call options were purchased in respect of an amount of US$275
million of which the value dates and amounts match those of the original
structure. The Australian dollar call options resulted in a cost of US$8.3
million, which was also deferred to match the maturity dates of the original
structure. The average strike price of the options is 0.7670 US$/AU$.
Details of the financial instruments are provided on page 11 of this report.
EXPLORATION AND OTHER
Exploration decreased, from R55 million (US$7 million) in the September quarter
to R35 million (US$5 million) in the December quarter largely as a result of
timing of certain expenditures.
EXCEPTIONAL ITEMS
Profit before taxation and exceptional items increased 29 per cent to R370
million (US$54 million) compared to R287 million (US$39 million) posted in the
September 2003 quarter. This was mainly due to the gain on financial
instruments, described earlier, partly offset by interest paid on short term
borrowings, which resulted in a cost of R15 million in the current quarter
compared to an income last quarter of R21 million (US$3 million). Exceptional
items amounted to R31 million (US$6 million) and includes the sale of the
remaining shares in both Chesapeake Gold Corporation (360,000) and Orezone
Resources Inc. (2,186,500) together with 226,000 shares in Radius Exploration
Ltd. (8 per cent of our holding), 848,000 (64 per cent of our holding) held in
Committee Bay Resources Ltd. and 245,000 Harmony Shares (20 per cent of our
holding). The exceptional gain in the September quarter related to the sale of
mineral rights and associated assets at Driefontein and the sale of
investments, which amounted to R205 million (US$28 million).
TAXATION
Taxation at R84 million (US$12 million) compared to R37 million (US$5 million)
for the previous quarter. This is due to higher gains on the financial
instruments and the deferred tax release last quarter as a result of the
Driefontein sale of mineral rights and associated assets of R53 million. The
South African operations are currently not in tax paying positions due to
reduced profits and high capital expenditure.
EARNINGS
As a result of the above net earnings, after accounting for minority interests,
were R277 million (US$42 million) or 57 SA cents per share (US$0.09 per share),
compared to R421 million (US$57 million) or 89 SA cents per share (US$0.12 per
share) in the previous quarter.
Headline earnings i.e. net earnings less the net after tax effect of asset
sales and the sale of investments, amounted to R249 million (US$36 million)
compared to R164 million (US$22 million) last quarter. The main reason for this
increase is the higher gains on foreign debt and cash together with the higher
gains on financial instruments. Headline earnings per share increased from 35
SA cents (US$0.05) to 51 SA cents (US$0.07) over the same period.
Earnings, excluding exceptional items as well as the net gains on financial
instruments and foreign debt net of cash after taxation, amounted to R110
million (US$17 million) or 23 SA cents per share (US$0.03 per share) as
compared to R136 million (US$18 million) or 29 SA cents per share (US$0.04 per
share) achieved last quarter.
CASH FLOW
Operating cash flow for the quarter was R677 million (US$96 million), compared
to operating cash flow in the September quarter of R32 million (US$4 million).
The increase is mainly due to the positive change in working capital of R297
million (US$39 million), due to a decrease in gold debtors, and a decrease in
tax payments of R253 million (US$32 million), both of these due to timing.
Capital expenditure was R662 million (US$97 million) as compared to R553
million (US$74 million) in the September 2003 quarter. The increase is mainly
due to the Tarkwa mill project, which accounted for an increase of R80 million
(US$12 million). R252 million (US$39 million) was expended at the South African
operations. A significant portion of this expenditure was directed at the major
projects with R54 million at the 1E and 5E shafts at Driefontein, R42 million
at Kloof 4 shaft and R46 million at Beatrix 3 shaft. Major projects are still
forecast to be in line with approved votes. The Australian operations incurred
capital expenditure of R143 million (A$27 million), the majority on development
of existing projects and exploration to increase the ore reserve base at those
operations. At the Ghanaian operations, capital expenditure amounted to R194
million (US$29 million), the majority at Tarkwa on the mill project.
Net cash inflow for the quarter was R1,437 million (US$198 million) after
taking account of the above as well as external loan repayments of R103 million
(US$15 million) and the proceeds from an offshore private placement of 17.25
million shares finalised during the quarter, which amounted to US$217 million
(R1,489 million). The cash balance at the end of the December 2003 quarter was
R1,104 million (US$161 million) as compared to a deficit of R279 million (US$39
million) at the end of the September 2003 quarter. Debt at the end of December
was R101 million (US$15 million) as compared to R211 million (US$29 million) at
the end of September 2003. The majority of these loans have since been repaid.
Quarter ended 31 December 2003
compared to quarter ended
31 December 2002
Attributable gold production decreased to 1,045,000 ounces in the December 2003
quarter compared to 1,091,000 ounces in the December 2002 quarter. The decrease
in production was due to the sale of St Helena effective 30 October 2002 and
the lower grades encountered at the South African operations. This was partly
offset by the excellent results achieved at the international operations, where
attributable production year on year is up 15 per cent from 300,000 ounces to
346,000 ounces.
Revenue decreased 19 per cent in rand terms (increased 16 per cent in US dollar
terms) from R3,607 million (US$370 million) to R2,923 million (US$431 million).
This was due to a reduction in the rand gold price achieved from R100,969 per
kilogram (US$321 per ounce) in the December 2002 quarter to R84,842 per
kilogram (US$390 per ounce) in the December 2003 quarter and the lower
production. Operating costs were virtually unchanged in rand terms. Operating
cost increases at the South African operations of R117 million (US$88 million)
were offset by the impact of converting 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. The average exchange rate
strengthened from R9.77 to the US dollar in the December 2002 quarter to R6.76
in the current quarter. In US dollars the increase in cost of US$107 million
was due to the 30 per cent stronger rand.
Operating profit at R545 million (US$80 million) for the December 2003 quarter
compares to R1,320 million (US$136 million) for the December 2002 quarter.
After including the sale of St Helena in last December's results and the lower
interest received due to interest paid this quarter on short term borrowings,
profit before tax at R370 million is one third of that achieved in the December
2002 quarter.
Earnings decreased from R817 million (US$83 million) in the December 2002
quarter to R277 million (US$42 million) in the current quarter.
Six months ended 31 December 2003
compared to six months ended
31 December 2002
Attributable gold production decreased 6 per cent from 2,221,000 ounces to
2,083,000 as a result of lower grades at the South African operations and the
sale of St Helena. This was partly offset by the increased production from the
international operations.
Revenue decreased by 22 per cent in rand terms (increased 10 per cent in US
dollar terms) from R7,570 million (US$752 million) to R5,875 million (US$828
million) due to the decrease in production and the decrease in the gold price
from R102,808 per kilogram (US$318 per ounce) to R85,511 per kilogram (US$375
per ounce) for the six months ended 31 December 2003.
Operating costs decreased 1 per cent when compared to the prior year at R4,697
million (US$662 million) mainly due to the translation of costs at the
international operations at a 29 per cent stronger rand, which strengthened
from R10.07 to R7.10 to the dollar over this period.
Operating profit at R1,114 million (US$157 million) compares to R2,897 million
(US$288 million) achieved in the six months to December 2002. After accounting
for the gains on financial instruments of R156 million (US$22 million) and
foreign debt net of cash of R61 million (US$9 million), profit before tax
amounted to R656 million (US$92 million) compared to R2,139 million (US$213
million) for the same period last year.
Net earnings reduced from R1,359 million (US$135 million) in the six months to
December 2002 to R699 million (US$98 million) for the current six months.
Detailed and Operational Revie w
Group overview
Attributable gold production for the December 2003 quarter improved to
1,045,000 ounces when compared to the September 2003 quarter. Approximately one
third of this production is attributable to the international operations. As
expected last quarter, production from the Australian operations increased 10
per cent to 190,000 ounces this quarter. This was as a result of an increase in
tons throughput at St Ives and improved grades and mining mix at Agnew. The
increase at St Ives is largely due to increased volumes from the low grade toll
milling campaign aimed at boosting cash flows. Operating profit from the
Australian operations increased 38 per cent to R165 million (US$34 million) for
the quarter. The Ghanaian operations showed an increase in gold production of 1
per cent to 219,300 ounces due to an increase in tons treated at Damang. Ghana
contributed operating profit of R243 million (US$36 million), a 4 per cent
increase on the previous quarter's operating profit. At the South African
operations production was 2 per cent lower at 698,000 ounces. An increase of 1
per cent in production at both Beatrix and Kloof was offset by a 6 per cent
decrease at Driefontein due to recent fires in the high grade areas.
Operating profit at the South African operations decreased from R216 million
(US$29 million) to R137 million (US$21 million) mainly as a consequence of the
lower production and lower gold price. The international operations contributed
R262 million (US$38 million) of the total net operating profit compared to R217
million (US$29 million) last quarter.
Earnings in Australia amounted to R136 million (US$20 million), up from R55
million (US$7 million) in the previous quarter. Excluding the gains on
financial instruments and foreign debt net of cash this quarter's earnings
amounted to R43 million (US$6 million) compared to R9 million (US$1 million)
last quarter.
Group ore milled increased from 11.50 million tons to 11.64 million tons due to
an increase in surface tons mainly at St Ives, due to the toll milling
campaign, and Damang. The overall yield remained unchanged at 3.0 grams per ton
in line with the September 2003 quarter. Total cash costs in rand terms
decreased to R66,991 per kilogram from R67,566 per kilogram achieved last
quarter as a result of the increased production and stronger rand. In US dollar
terms, total cash costs increased from US$282 per ounce to US$308 per ounce
mainly due to the stronger South African rand. Operating cost per ton at R202
improved from R204 last quarter, the increase in operating costs being offset
by the increase in tons milled.
South African Operations
DRIEFONTEIN
December September
2003 2003
Gold produced - 000'ozs 272.3 289.0
Total cash costs - R/kg 73,126 67,835
- US$/oz 336 284
Production at Driefontein decreased 6 per cent to 272,300 ounces. This was due
to a decrease in underground tonnage and yield when compared to the previous
quarter. These decreases were due to fires, which affected output at 4W, 5W,
6W, 7W and 2E shafts. The fires necessitated additional costs to open up new
mining areas and the replacement of underground ore with low grade surface
material. Underground tonnage therefore decreased to 950,000 tons from 994,000
tons, while overall tonnage decreased to 1,558,000 tons from the 1,603,000 tons
achieved last quarter. The increased proportion of surface to underground ore
treated resulted in the combined yield decreasing from 5.6 grams per ton last
quarter to 5.4 grams per ton this quarter.
Total cash costs increased by 8 per cent in rand terms to R73,126 per kilogram
from R67,835 per kilogram last quarter, mainly due to the effect of the fires.
In US dollar terms total cash costs increased from US$284 per ounce to US$336
per ounce quarter on quarter as a result of the stronger rand, allied with the
lower production. Operating profit thus declined from R133 million (US$18
million) in the September quarter to R68 million (US$11 million) in the current
quarter. Capital expenditure was virtually unchanged at R82 million (US$13
million) for the quarter compared to R88 million (US$12 million) in the
previous quarter, but will be lower over the remainder of the year as funding
requirements for the major projects i.e. 5E and 1 Tertiary shaft reduce and
with the mill upgrades being completed. Despite some teething problems on
commissioning, the Driefontein 1 plant mill installation achieved design
throughput towards the end of the December quarter.
Following the fires production will continue to be affected into the March
quarter, but despite this and the Christmas break, a small increase in
production can be expected in the forthcoming quarter at similar cash cost
levels.
KLOOF
December September
2003 2003
Gold produced - 000'ozs 265.1 262.4
Total cash costs - R/kg 75,849 76,614
- US$/oz 349 320
Gold production at Kloof was 265,100 ounces, which was 1 per cent higher than
the previous quarter. This was due to higher underground grades, which offset
the lower underground mill tonnage as a result of the cessation of operations
at 9 shaft. Underground and surface tonnage was 921,000 tons and 363,000 tons
respectively compared to 969,000 tons underground and 278,000 surface tons last
quarter. Surface yield reduced from 1.0 gram per ton to 0.8 grams per ton
offset by an increase in surface tonnage.
The combined yield decreased marginally from 6.5 grams per ton to 6.4 grams per
ton, due to the increase in surface tonnage. The 9 shaft marginal mining and
development project has now been put on care and maintenance and the shaft has
been restructured as a pumping facility only.
Total cash costs decreased by 1 per cent in rand terms to R75,849 per kilogram,
but increased by 9 per cent in US dollar terms, from US$320 per ounce to US$349
per ounce due to the strengthening of the rand compared to the previous
quarter. Revenue from the increase in gold output was offset by the lower rand
gold price received and a small increase in costs was incurred, mainly due to
the restructuring of 9 shaft. Operating profit reduced by 9 per cent quarter on
quarter in rand terms from R55 million (US$7 million) to R50 million (US$7
million). Capital expenditure decreased from R124 million (US$17 million) to
R87 million (US$14 million) this quarter. This level of expenditure is expected
to be maintained in the March quarter.
All areas being mined below or close to prevailing pay limits have been closely
scrutinised during the quarter. In response, crew moves have taken place at all
shafts to higher-grade panels, high-grade pillars or other gold winning
operations. The pillar extraction programme continues to gain momentum as
opportunities are better defined and opening up and equipping schedules are
profiled. The old gold winning programme will continue to receive the necessary
focus.
As a result of the Christmas and New Year closure and the traditionally slow
January start up, output in the March quarter is expected to be slightly below
that achieved in the December quarter.
BEATRIX
December September
2003 2003
Gold produced - 000'ozs 160.8 159.2
Total cash costs - R/kg 77,005 78,509
- US$/oz 354 328
Gold production at Beatrix increased marginally to 160,800 ounces from the
159,200 ounces achieved in the previous quarter. This increase was due to an
improved underground yield to 4.7 grams per ton from 4.4 grams per ton, which
offset the decrease in underground tons. Underground ore milled decreased to
1,000,000 tons this quarter from 1,054,000 last quarter in line with our policy
to reduce marginal mining announced last quarter, while surface tons increased
19 per cent from 329,000 tons to 390,000 tons. This increase was partly due to
208,000 tons sent to the neighbouring Joel mine for toll processing, an
increase of 20,000 tons when compared to the September quarter. Surface yields
decreased from 0.8 grams per ton to 0.7 grams per ton.
Detailed and focused action plans have restored mining mixes at the various
shafts as reported in the previous quarter. The holing of a number of raise
lines, resolution of logistical and ventilation bottlenecks continue tobe
addressed in order to improve tonnage throughput. At 2 shaft, grades have
recovered to planned levels although volumes are still slightly below plan.
Beatrix 4 shaft incurred operating losses of R25 million during the quarter,
despite a 6 per cent improvement in gold values. Negotiations to mine
additional shifts including holidays and Sundays at the shafts are well
advanced. This should allow greater flexibility and an increase in volumes in
the next quarter. Exploration drilling on surface and underground has confirmed
extension of current facies at existing grades into adjacent areas at 4 shaft.
Total cash costs decreased 2 per cent in rand terms to R77,005 per kilogram and
increased to US$354 per ounce from US$328 per ounce last quarter. Operating
profit declined from R28 million (US$4 million) to R18 million (US$3 million)
quarter on quarter due to the lower gold price. Capital expenditure increased
from R77 million (US$11 million) last quarter to R83 million (US$13 million)
this quarter, with the commissioning of the Knelson concentrator at 1 plant.
Despite the Christmas/New Year break, production in the March 2004 quarter
should not be materially different from the December 2003 quarter.
International Operations
Ghana
TARKWA
December 2003 September 2003
Gold produced - 000'ozs 141.8 147.7
Total cash costs - US$/oz 227 210
Gold production decreased to 141,800 ounces compared to 147,700 ounces in the
September quarter. This decrease in gold production is due to a 4 per cent
decrease in the volume of ore treated, as yields remained unchanged quarter on
quarter. Gold in process release was similar to the previous quarter. Mining
and processing volumes declined slightly due to rain interruptions and
unscheduled down time due to liner replacements at the north crusher.
For the December quarter operating costs increased marginally to US$30 million.
Unit costs increased from US$6.95 per ton treated to US$7.76 per ton mainly
attributable to an increase in the stripping ratio, an 8 per cent increase in
diesel costs, charges associated with mobilising additional haul trucks to the
site and the cost of the maintenance referred to earlier. The effect of the
additional trucks is expected to be seen in the March quarter, with a planned
increase in mining volumes. This increase in operating expenditure coupled with
the slightly lower gold production led to an 8 per cent increase in total cash
costs to US$227 per ounce. Tarkwa contributed US$23 million (R156 million) to
operating profit, an increase of 4 per cent quarter on quarter.
The Tarkwa plant construction and owner mining projects are well underway and
on schedule. This is the primary reason for the significant increase in capital
expenditure this quarter to US$28 million (R189 million) from US$11 million
(R81 million) in the September quarter.
In the March quarter gold production is expected to be relatively stable
subject to gold in process movements, which remain difficult to predict. Total
cash costs are expected to remain close to current levels, as the effect of a
planned increase in stripping ratio from 2.2 in the quarter to 2.8 in the
coming period will offset the effect of the one off charges referred to
earlier. In the longer term costs are expected to return closer to historic
levels of around US$210 per ounce.
DAMANG
December September
2003 2003
Gold produced - 000'ozs 77.5 70.1
Total cash costs - US$/oz 236 232
At Damang, production increased 10 per cent to 77,500 ounces due to an increase
in mill throughput, from 1,186,000 tons to 1,358,000 tons. The increase in
milled volume against the previous quarter is due to the extended mill shut
down, which occurred in July and ongoing optimisation of the mill set up and
feedblend. Both gold production and mill throughput represent record levels for
this mine. Yield was maintained at 1.8 grams per ton.
Total cash costs increased from US$232 per ounce to US$236 per ounce quarter on
quarter. The increase in unit cash costs occurred despite a decrease in unit
operating costs from US$13.5 per ton to US$12.2 per ton treated. The increase
in cash costs was due to the inclusion of a US$1.2 million gold in process
charge this quarter, reflecting the ongoing movement in high value ores through
the stockpiles compared to the inclusion of a US$0.1 million gold in process
credit in the September quarter. The increase in stockpile utilisation reflects
the decline in availability of higher grade ores in the Damang pit complex due
to the maturity of that pit and the effect of heavy rain on mining during the
quarter. The net result was an increase in operating profit of 37 per cent to
US$13 million (R87 million).
Exploration to increase the current ore reserve continues and US$1 million (R6
million) was included in costs during the quarter. Capital expenditure once
again was negligible.
Production should be marginally lower in the March 2004 quarter with slightly
lower tons and yields. Total cash costs should remain at current levels.
Australia
ST IVES
December 2003 September 2003
Gold produced - 000'ozs 140.1 127.0
Total cash costs - A$/oz 395 412
- US$/oz 280 271
Gold production at St Ives was 140,100 ounces, an increase of 10 per cent when
compared to the September quarter's production of 127,000 ounces. This increase
was due to a 9 per cent increase in tons treated, from 1,688,000 tons last
quarter to 1,845,000 tons this quarter. This increase in treatment volumes was
mainly due to an increase in the toll treatment program to 409,000 tons,
producing approximately 30,000 ounces.
Ore production from underground increased by 5 per cent with an ongoing build
up of production from the Argo and Leviathan underground operations, offsetting
a marginal decline in performance at Junction underground, following
continuation of operating difficulties there.
Operating costs at A$56 million (R273 million, US$40 million) were 11 per cent
above the previous quarter due to costs associated with toll treatment and an
increase in ore mined from underground and surface. Total cash costs were A$395
per ounce (US$280 per ounce) for the December quarter compared to A$412 per
ounce (US$271 per ounce) in the September quarter. The decrease in total cash
costs largely reflects the inclusion of a A$3 million credit to operating costs
reflecting capital expenditure previously charged to operating costs for build
up of operations on the new underground mines. St Ives contributed A$21 million
(R104 million, US$15 million) to operating profit compared to A$16 million (R79
million, US$11 million) in the previous quarter. The gold price achieved of
A$551 per ounce was similar to the September quarter. Capital expenditure
reduced to A$21 million (R107 million, US$16 million) in the December quarter
from A$26 million (R126 million, US$18 million) in the September quarter due to
the near completion of the Mars pit establishment costs.
Gold production and total cash costs should remain close to current levels in
the coming quarter.
AGNEW
December 2003 September 2003
Gold produced - 000'ozs 50.1 45.9
Total cash costs - A$/oz 296 372
- US$/oz 210 245
Gold production at Agnew increased 9 per cent quarter on quarter to 50,100
ounces. This reflects a 16 per cent increase in head grade, offset by an 8 per
cent planned reduction in mill throughput. The higher head grade is due to a 10
per cent increase in delivery of high grade ores from the Kim and Deliverer
operations, displacing low grade stockpiled ores. With the increase in head
grade, mill throughput has been reduced to optimise gold recovery and increase
the operating margin.
The mine reported a significant decrease in total cash costs in Australian
dollars from A$372 per ounce (US$245 per ounce) last quarter, to this quarter's
A$296 per ounce (US$210 per ounce). This reduction in unit costs reflects not
only the effect of the higher gold production but also a reduction in
expenditure on development at the Deliverer mine.
The contribution to operating profit from Agnew was A$13 million (R61 million,
US$9 million) compared to A$8 million (R41 million and US$6) last quarter.
Capital expenditure was little changed at A$7 million (R33 million, US$5
million) as exploration and development of the underground operations at
Waroonga continued.
Agnew performed above expectations once again and it is unlikely that this
level of production and profitability can be maintained. Thus production next
quarter is forecast close to the average of the last two quarters.
Capital and development projects
ST IVES EXPANSION PROJECT
As previously announced, a decision was taken during the quarter to proceed
with this project, which involves the construction of a new 4.5mtpa mill and
CIP facility, along with associated infrastructure. This plant will replace the
existing 3.1mtpa mill. The project entails a total investment of some A$125
million and is expected to be completed by the end of December 2004.
By the end of the quarter the execution team had been mobilised, initial site
preparation was underway, and detailed engineering had commenced.
TARKWA EXPANSION PROJECT
New Mill Project
During the December 2003 quarter construction of the new 4.2mtpa mill at Tarkwa
advanced significantly. The majority of site earthworks were completed, while
erection activities had commenced, beginning with the CIL tanks. Construction
of the tailings storage facility has also commenced.
The mill remains on track for commissioning in the quarter ended December 2004.
The project remains within the US$85 million budget save for possible currency
exposure on the Australian dollar and South African rand, representing up to
US$3 to 4 million of overruns.
Conversion to owner mining Following the decision in the previous quarter to
proceed with Caterpillar haul trucks (and support fleet) and Liebherr
excavators, orders were finalised in this period for Sandvik-Tamrock rock
drills along with various other support equipment and systems. All orders were
placed within budget. The first of these new haul trucks are due to arrive in
Ghana at the end of January 2004.
Planning for the transition of staff from the current contractor to the mine's
employ is advanced and this transition is expected to commence in the fourth
quarter of financial 2004. Design of the fleet workshops and fuel bay were
completed in the December 2003 quarter and construction is due to commence in
January.
ARCTIC PLATINUM PROJECT
Activity at APP has been focused on the two large tonnage open pittable
deposits at Suhanko, namely Kontijarvi and Ahmavaara. During the December 2003
quarter the bulk of the work focused on detailed in-fill exploration,
particularly on a recently excavated exposure of the Kontijarvi deposit, which
has proven key in advancing the understanding of the geology and grade
distribution of these deposits.
A similar exercise will be undertaken on Ahmavaara in the March 2004 quarter,
after which a trial mine will be undertaken, aimed at both verifying grade and
geological models but also producing a bulk feed for a pilot plant run, planned
to be undertaken near the end of the fourth quarter. This trial mine, pilot
scale concentrator campaign and the subsequent downstream treatment testwork is
the critical path to completion of the feasibility study on this project. It is
planned to reach an investment decision by the
end of this calendar year.
DAMANG EXPANSION PROJECT
During the December 2003 quarter drilling of both paleoplacer and hydrothermal
deposits continued. The highest priority remained developing alternative
sources of high grade hydrothermal ores, and drilling targeted the Rex and
Amoando deposits which had previously been drilled by Ranger Minerals, the
former owners of Damang. By quarter end drilling had been completed and
evaluation was underway.
Drilling of the Tomento East paleoplacer deposit was also completed. This
target represents the best conglomerate target identified to date at Damang and
while encouraging and subject to final interpretation and modelling, is
expected only to produce incremental low grade, soft ore feed to the Damang
mill. Apart from some follow up in the south extension of the Bonsa forest
area, drilling of the conglomerates is now complete at Damang.
Exploration and Corporate Development
CERRO CORONA IN PERU
On 19 December 2003, it was announced that an agreement was reached whereby 92
per cent of the voting shares of Sociedad Minera La Cima S.A., subject to
certain conditions, would be acquired from various members of the Gubbins
family. Sociedad Minera La Cima, which owns the Cerro Corona Project and other
mineral properties in Cajamarca, Peru has been acquired conditional upon
approval of the Environmental Impact Study and the issue of construction
permits.
The feasibility study suggests that the project has the capacity during phase 1
to produce 147,000 ounces of gold and 65 million pounds of copper per year
(280,000 ounces of gold-equivalent), with total operating costs of $212 per
ounce of gold equivalent or $0.48 per pound of copper equivalent (using a gold
price of $360/oz and a copper price of 80c/lb). A second phase, which could
potentially double production, is currently under investigation.
The deposit, which lies within a well endowed trend just to the north of the
Yanacocha mine in the Cajamarca district of northern Peru, is well studied and
has robust economics.
The remainder of the belt and the district has seen relatively little modern
exploration and is thus quite prospective.
This transaction is in line with our strategy of diversifying our geographical,
technical and political risk by acquiring and developing long-life, world class
assets in all of the major gold provinces of the world. This acquisition will
give us our first operational exposure in South America, a base from which we
intend to grow in the region.
FURTHER CHINA VENTURES
Gold Fields has entered into a strategic partnership with Chinese company
Fujian Zijin Mining Industry (Zijin) to explore for and develop gold mines in
China. This complements the exploration joint venture with Sino Mining in the
Shandong province of China.
Zijin is one of China's largest gold producers. The firm's main asset is the
Fujian province-based Zijinshan Gold Mine, China's biggest gold-producing mine.
The company has interests in a number of other gold and base metal projects
throughout China, ranging from grass-roots exploration to operating stage.
Shares worth $7.73 million in Zijin have been purchased by Gold fields through
its wholly owned subsidiary Orogen Holdings. This is about 5.7 per cent of the
float of 27 per cent of the company in the initial public offering of Zijin on
the Hong Kong bourse. Now that the shares have been purchased, a joint venture
will be established. Initially, Gold Fields would hold 60 per cent of the
venture and Zijin 40 per cent of the joint venture. The purpose of the joint
venture would be to explore and develop gold properties in China's Fujian
province.
On 16 January 2004 Sino Gold Fields Joint Venture ("SGF") entered into an
exploration alliance and project joint venture agreement in Shandong Province,
Peoples Republic of China.
The agreement is with the Shandong provincial Bureau of Geo-Mineral Exploration
and Development ("Shandong BGMR") for a cooperative joint venture to explore
the Hei-Shan gold exploration project. This is a greenfields exploration
prospect with alteration style lode deposits. Previously tested to a shallow
depth, the site has favourable structural settings and is adjacent to similar
style deposits that are producing gold at depth beneath an unmineralised
portion of over 200 metres. The agreement also covers possible project
evaluation and development and an exclusive right to cooperate in three other
exploration areas, preserved for 12 months. The cooperative joint venture is
held 70 per cent by SGF and 30 per cent by Shandong BGMR, with SGF providing
the first phase exploration funding and Shandong BGMR the tenement.
SGF is the 50/50 joint venture between Sino Gold and Gold Fields to identify
and acquire exploration properties in Shandong Province, which is China's
richest gold producing province with several two to three million ounce gold
deposits. This region is considered to be highly prospective and is a focus for
SGF's activity.
OTHER PROJECTS
Lastly, Gold Fields announced a joint venture option with Bolivar Gold
Corporation to earn up to 60 per cent in the Monte Ollasteddu prospect in
southeast Sardinia. Bolivar had previously optioned a 70 per cent interest in
this project from Gold Mines of Sardinia.
During the quarter, exploration drilling was undertaken on the Arctic Platinum
project in Finland, the Bibiani project in Ghana, the Mansounia project in
Guinea, the Miyabi project in Tanzania and the Essakane project in Burkina
Faso.
Project interests were sold to joint venture partners at the Hereward joint
venture in Bulgaria, the Tambor joint venture in Guatemala and the Sanu joint
venture in Eritrea. Gold Fields also relinquished its interest in the Capanema
project in Brazil.
The company is responding to favourable market conditions for gold by
aggressively increasing its exploration program and continuing its search for
quality, value adding acquisitions.
Corporate matters
BLACK ECONOMIC EMPOWERMENT TRANSACTION
On 26 November 2003, Gold Fields Limited and Mvelaphanda Resources
Limited announced that they had reached agreement in terms of which Mvela Gold,
a wholly-owned subsidiary of Mvela Resources, will, subject to the fulfilment
of certain conditions precedent acquire a 15 per cent beneficial interest in
the South African gold mining assets of Gold Fields, including the world-class
Beatrix, Driefontein and Kloof mines for a cash consideration of R4,139
million. This follows an initial joint cautionary announcement dated 10 June
2003, and three subsequent joint cautionary announcements, dated 24 July 2003,
5 September 2003, and 8 October 2003 respectively.
Gold Fields has created a wholly owned subsidiary, GFI Mining South Africa
Limited (GFI-SA), which will acquire, prior to the implementation of this
transaction, the gold mining assets of Beatrix Mining Ventures Limited,
Driefontein Consolidated (Pty) Limited and Kloof Gold Mining Company Limited as
well as ancillary assets. Mvela Gold will, on implementation of the empowerment
transaction, advance a loan of R4,139 million to GFI-SA, financed by way of
commercial bank debt of approximately R1,349 million, mezzanine finance of
R1,100 million and the balance of approximately R1,690 million raised by Mvela
Resources through an equity capital raising, which includes R100 million of
equity which Gold Fields will subscribe for at the book-build price. At the end
of five years the loan will be repaid and Mvela Gold will subscribe for 15 per
cent of the share capital of GFI-SA.
Gold Field believes that this transaction satisfies the 15 per cent
Historically Disadvantaged South African ownership requirement of the scorecard
attached to the Broad Based Socio-Economic Mining Charter for the South African
Mining Industry, and has been undertaken on commercial terms and for fair value
so that it will benefit all shareholders.
In terms of the transaction, and in furthering its empowerment objectives,
Mvela Gold will have the right to appoint two nominees out of a maximum of
seven to the GFI-SA board, and will also be entitled to appoint two members to
each of GFI-SA's Operations Committee and Transformation Committee, which
latter committee will be established to monitor compliance with the Mining
Charter and other transformation objectives.
Mvela Resources has announced that it intends to be a long-term investor in
Gold Fields and has accordingly undertaken not to dispose of its empowerment
interest for at least five years or until the date on which the loan to GFI-SA
becomes repayable. For a period of one year following this, the 15 per cent
interest in GFI-SA may, at the option of Mvela Gold or Gold Fields, be
exchanged for new ordinary shares in Gold Fields. Furthermore, Mvela Resources
has undertaken to facilitate the participation of a broad- based black economic
empowerment consortium in the transaction. Such a consortium is expected to
comprise community-based development trusts, broad-based empowerment mining
companies, and women and youth empowerment groupings. In addition, Mvela
Resources has undertaken to issue 7.5 million five-year warrants to a BEE
trust, in order to provide assistance for those groupings which lack the
resources for equity participation. Each warrant will be convertible into
ordinary shares of Mvela Resources at an issue price of R35 at the end of a
five year period.
This transaction is subject to certain conditions being met, including approval
by the shareholders of both Gold Fields and Mvela Resources of the necessary
resolutions. It is anticipated that circulars will be posted to shareholders
during February 2004.
Ms. Phumzile Mlambo-Ngcuka, South African Minister of Minerals and Energy, has
noted that this transaction reflects recognition by both Gold Fields and Mvela
Resources of the need to transform the economy of South Africa and to increase
the interests of historically disadvantaged South Africans in traditional
mining house ownership structures. Mvela Resources and Gold Fields have gone a
long way in ensuring that this transaction encompasses the spirit and the
letter of the Mining Charter on a commercially sustainable basis for both
companies.
The transaction is expected to be closed during March 2004.
SALE OF DRIEFONTEIN'S 1C11 BLOCK
As previously announced last quarter, Driefontein sold the mining Block 1C11
and associated assets to AngloGold for a cash consideration of R315 million at
a profit net of taxation of R240 million. The sale was subject to the
suspensive condition that the transaction be approved by the Competition
Commission. This condition was unconditionally fulfilled on 21 January 2004.
The block is currently being transferred to AngloGold after which the transfer
of funds will occur in due course.
INTERNATIONAL PRIVATE PLACEMENT
On 7 November 2003, Gold Fields completed an international private placement of
15 million new ordinary shares for a cash price of US$13 per share (US$195
million).
Gold Fields granted to the underwriters, JP Morgan, an option to purchase an
additional 2.25 million shares at the same price (US$29.25 million). This
option was exercised on 3 December 2003. The net raising after costs amounted
to US$217 million.
As Reserve Bank approval for the money to remain offshore was approved, it will
be used to fund a portion of our capital requirements in Ghana and Australia
and to actively pursue future offshore growth opportunities.
LEGAL
There have been no further developments to our earlier report in respect of the
law suit 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 6
May 2003. 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.
DIVIDEND
In line with the Company's policy of paying out 50 per cent of its earnings,
subject to investment opportunities, an interim dividend has been declared
payable to all shareholders as follows:
- Interim dividend: 40 SA cents
- Last date to trade cum-dividend: 13 February 2004
- Sterling & US Dollar conversion date: 16 February 2004
- Trading commences ex-dividend: 16 February 2004
- Record date: 20 February 2004
- Payment date: 23 February 2004
Share certificates may not be dematerialised or rematerialised between Monday,
16 February 2004 and Friday, 20 February 2004, both dates inclusive.
Outlook
Gold production is expected to be marginally lower in the March 2004 quarter
mainly due to the impact of the traditional Christmas break at the South
African operations. In addition, in the event that the gold price remain at
current levels i.e. above R90,000 per kilogram and US$400 per ounce, revenue
and operating margins should improve.
Basis of accounting
The unaudited results for the quarter and six months have been prepared on the
International Financial Reporting Standards (IFRS) basis. The detailed
financial, operational and development results for the December 2003 quarter
and six months 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.
Income Statement
International Financial Reporting Standards Basis
SA RAND (Figures are in millions unless otherwise stated)
Quarter
December September December
2003 2003 2002
Revenue 2,922.9 2,952.4 3,606.8
Operating costs 2,354.7 2,341.8 2,344.7
Gold inventory change 23.6 40.8 (57.4)
Operating profit 544.6 569.8 1,319.5
Amortisation and depreciation 307.5 298.8 351.3
Net operating profit 237.1 271.0 968.2
Finance income/(cost) 44.9 21.9 86.7
- Net interest and
investment income/(cost) (15.2) 20.8 54.9
- Exchange gains/(losses) on
foreign debt and cash 60.1 1.1 31.8
Gain/(loss) on financial
instruments 119.5 36.4 166.2
Other income/(expense) 3.5 12.4 (8.0)
Exploration (35.4) (55.1) (34.8)
Profit before taxation and
exceptional items 369.6 286.6 1,178.3
Exceptional gain 31.4 204.5 123.0
Profit before taxation 401.0 491.1 1,301.3
Mining and income taxation 83.6 37.3 449.1
- Normal taxation 40.0 47.8 254.6
- Deferred taxation 43.6 (10.5) 194.5
Profit after taxation 317.4 453.8 852.2
Minority interest 40.0 32.6 34.9
Net earnings 277.4 421.2 817.3
Exceptional items:
Profit on sale of investments 32.3 16.1 -
Sale of mineral rights - 187.2 -
Disposal of St Helena - - 121.7
Other (0.9) 1.2 1.3
Total exceptional items 31.4 204.5 123.0
Taxation (6.9) 52.3 (19.2)
Net exceptional items after
tax 24.5 256.8 103.8
Net earnings per share
(cents) 57 89 173
Headline earnings 249.0 164.4 713.5
Headline earnings per share
(cents) 51 35 151
Diluted earnings per share
(cents) 56 89 172
Net earnings excluding gains
and losses on financial
instruments
and foreign debt, net of
cash and exceptional items 110.4 136.4 573.9
Net earnings per share
excluding gains and losses
on financial
instruments and foreign
debt, net of cash and
exceptional items
(cents) 23 29 122
Gold sold - managed kg 34,451 34,257 35,722
Gold price received R/kg 84,842 86,184 100,969
Total cash costs R/kg 66,991 67,566 61,853
Income Statement
International Financial Reporting Standards Basis
SA RAND (Figures are in millions unless otherwise stated)
Six months to
December December
2003 2002
Revenue 5,875.3 7,570.3
Operating costs 4,696.5 4,746.9
Gold inventory change 64.4 (73.8)
Operating profit 1,114.4 2,897.2
Amortisation and depreciation 606.3 693.2
Net operating profit 508.1 2,204.0
Finance income/(cost) 66.8 47.9
- Net interest and investment income/(cost) 5.6 87.9
- Exchange gains/(losses) on foreign debt 61.2 (40.0)
and cash
Gain/(loss) on financial instruments 155.9 (35.7)
Other income/(expense) 15.9 3.0
Exploration (90.5) (80.3)
Profit before taxation and exceptional items 656.2 2,138.9
Exceptional gain 235.9 123.0
Profit before taxation 892.1 2,261.9
Mining and income taxation 120.9 834.8
- Normal taxation 87.8 543.3
- Deferred taxation 33.1 291.5
Profit after taxation 771.2 1,427.1
Minority interest 72.6 68.1
Net earnings 698.6 1,359.0
Exceptional items:
Profit on sale of investments 48.4 -
Sale of mineral rights 187.2 -
Disposal of St Helena - 121.7
Other 0.3 1.3
Total exceptional items 235.9 123.0
Taxation 45.4 (19.2)
Net exceptional items after tax 281.3 103.8
Net earnings per share (cents) 146 288
Headline earnings 413.4 1,255.2
Headline earnings per share (cents) 86 266
Diluted earnings per share (cents) 145 286
Net earnings excluding gains and losses on
financial
instruments and foreign debt, net of cash
and exceptional items 246.8 1,309.0
Net earnings per share excluding gains and
losses on
financial instruments and foreign debt, net
of cash and
exceptional items (cents) 52 278
Gold sold - managed kg 68,708 73,635
Gold price received R/kg 85,511 102,808
Total cash costs R/kg 67,277 61,528
Income Statement
International Financial Reporting Standards Basis
US DOLLARS
(Figures are in millions unless otherwise stated)
Quarter
December September December
2003 2003 2002
Revenue 430.7 396.8 370.0
Operating costs 346.7 314.8 240.0
Gold inventory change 3.6 5.5 (5.7)
Operating profit 80.4 76.5 135.7
Amortisation and depreciation 45.2 40.2 35.9
Net operating profit 35.2 36.3 99.8
Finance income/(cost) 6.4 3.0 8.5
- Net interest and investment
income/(cost) (2.0) 2.8 5.5
- Exchange gains/(losses) on foreign
debt and cash 8.4 0.2 3.0
Gain/(loss) on financial instruments 17.1 4.9 16.0
Other income/(expense) 0.5 1.7 (0.8)
Exploration (5.3) (7.4) (3.6)
Profit before taxation and exceptional
items 53.9 38.5 119.9
Exceptional gain 5.7 27.5 12.2
Profit before taxation 59.6 66.0 132.1
Mining and income taxation 12.1 5.0 45.8
- Normal taxation 6.0 6.4 26.2
- Deferred taxation 6.1 (1.4) 19.6
Profit after taxation 47.5 61.0 86.3
Minority interest 5.8 4.4 3.6
Net earnings 41.7 56.6 82.7
Exceptional items:
Profit on sale of investments 4.6 2.2 -
Sale of mineral rights - 25.2 -
Disposal of St Helena - - 12.1
Other 1.1 0.1 0.1
Total exceptional items 5.7 27.5 12.2
Taxation (0.6) 7.0 (1.9)
Net exceptional items after tax 5.1 34.5 10.3
Net earnings per share (cents) 9 12 18
Headline earnings 36.1 22.1 72.4
Headline earnings per share (cents) 7 5 15
Diluted earnings per share (cents) 8 12 17
Net earnings excluding gains and losses
on financial instruments
and foreign debt, net of cash and
exceptional items 16.5 18.3 59.2
Net earnings per share excluding gains
and losses on financial
instruments and foreign debt, net of
cash and exceptional items (cents) 3 4 13
Exchange rate SA Rand/US Dollar 6.76 7.44 9.77
Gold sold managed ozs(000) 1,108 1,101 1,148
Gold price received $/oz 390 360 321
Total cash costs $/oz 308 282 197
Income Statement
International Financial Reporting Standards Basis
US DOLLARS
(Figures are in millions unless otherwise stated)
Six months to
December December
2003 2002
Revenue 827.5 751.8
Operating costs 661.5 471.4
Gold inventory change 9.1 (7.3)
Operating profit 156.9 287.7
Amortisation and depreciation 85.4 68.8
Net operating profit 71.5 218.9
Finance income/(cost) 9.4 4.8
- Net interest and investment income/(cost) 0.8 8.7
- Exchange gains/(losses) on foreign debt and 8.6 (3.9)
cash
Gain/(loss) on financial instruments 22.0 (3.5)
Other income/(expense) 2.2 0.3
Exploration (12.7) (8.0)
Profit before taxation and exceptional items 92.4 212.5
Exceptional gain 33.2 12.2
Profit before taxation 125.6 224.7
Mining and income taxation 17.1 82.9
- Normal taxation 12.4 54.0
- Deferred taxation 4.7 28.9
Profit after taxation 108.5 141.8
Minority interest 10.2 6.8
Net earnings 98.3 135.0
Exceptional items:
Profit on sale of investments 6.8 -
Sale of mineral rights 25.2 -
Disposal of St Helena - 12.1
Other 1.2 0.1
Total exceptional items 33.2 12.2
Taxation 6.4 (1.9)
Net exceptional items after tax 39.6 10.3
Net earnings per share (cents) 21 29
Headline earnings 58.2 124.7
Headline earnings per share (cents) 12 26
Diluted earnings per share (cents) 20 28
Net earnings excluding gains and losses on
financial
instruments and foreign debt, net of cash and
exceptional items 34.8 130.0
Net earnings per share excluding gains and
losses on
financial instruments and foreign debt, net of
cash and
exceptional items (cents) 7 28
Exchange rate SA Rand/US Dollar 7.10 10.07
Gold sold managed ozs (000) 2,209 2,367
Gold price received $/oz 375 318
Total cash costs $/oz 295 190
Balance Sheets
International Financial Reporting Standards Basis
(Figures are in millions) SA RAND US DOLLARS
December June December June
2003 2003 2003 2003
Mining and mineral assets 15,569.9 15,371.3 2,266.4 1,973.2
Non-current assets 289.1 275.0 42.1 35.3
Investments 764.0 512.1 111.2 65.7
Current assets 3,510.2 3,059.5 510.9 392.7
- Other current assets 2,406.2 2,018.7 350.2 259.1
- Net cash and deposits 1,104.0 1,040.8 160.7 133.6
- Gross cash and deposits 2,268.6 1,040.8 324.7 133.6
- Less overdraft 1,164.6 - 164.0 -
Total assets 20,133.2 19,217.9 2,930.6 2,466.9
Shareholders' equity 12,978.5 11,295.5 1,889.2 1,450.0
Minority interest 544.5 668.2 79.3 85.8
Deferred taxation 4,273.9 4,279.6 622.1 549.4
Long-term loans 44.8 164.2 6.5 21.1
Environmental rehabilitation
provisions 718.5 715.3 104.6 91.8
Post-retirement health care
provisions 73.8 90.7 10.7 11.6
Current liabilities 1,499.2 2,004.4 218.2 257.2
- Other current liabilities 1,443.2 1,844.7 210.0 236.7
- Current portion of
long-term loans 56.0 159.7 8.2 20.5
Total equity and liabilities 20,133.2 19,217.9 2,930.6 2,466.9
S.A. Rand/U.S. Dollar
conversion rate 6.87 7.79
Condensed Statements of Changes in Equity
International Financial Reporting Standards Basis
(Figures are in millions)
SA RAND US DOLLARS
December December December December
2003 2002 2003 2002
Balance as at the
beginning of the financial
year 11,295.5 11,095.8 1,450.0 1,071.0
Currency translation
adjustment and other (245.4) (573.5) 164.4 116.6
Issue of share capital 9.4 0.8 1.3 0.1
Increase in share premium 1,562.1 15.0 220.0 1.5
Marked to market valuation
of listed investments 130.7 146.9 18.4 14.6
Dividends (472.4) (1,038.5) (63.2) (96.6)
Net earnings 698.6 1,359.0 98.3 135.0
Balance as at the end of
December 12,978.5 11,005.5 1,889.2 1,242.2
Reconciliation of Headline Earnings with Net Earnings
(Figures are in millions unless otherwise stated)
SA RAND
December September December
2003 2003 2002
Net earnings 277.4 421.2 817.3
Profit on sale of investments (32.3) (16.1) -
Taxation effect of profit on sale 6.9 0.4 -
of investments
Profit on disposal of mineral - (187.2) -
rights and associated assets
Taxation effect of profit on - (53.0) -
disposal of mineral rights and
associated assets
Disposal of St Helena net of tax - - (102.5)
Profit on sundry asset sales (3.0) (0.9) (1.3)
Headline earnings 249.0 164.4 713.5
Headline earnings per share cents 51 35 151
Based on headline earnings as given
above divided by 484,511,921
(September 2003 - 472,885,574 and
December 2002 - 471,777,323) being
the weighted average number of
ordinary shares in issue
Reconciliation of Headline Earnings with Net Earnings
(Figures are in millions unless otherwise stated)
US DOLLARS
December September December
2003 2003 2002
Net earnings 41.7 56.6 82.7
Profit on sale of investments (4.6) (2.2) -
Taxation effect of profit on sale
of
investments 0.6 0.1 -
Profit on disposal of mineral
rights and
associated assets - (25.2) -
Taxation effect of profit on
disposal of
mineral rights and associated - (7.1) -
assets
Disposal of St Helena net of tax - - (10.2)
Profit on sundry asset sales (1.6) (0.1) (0.1)
Headline earnings 36.1 22.1 72.4
Headline earnings per share cents 7 5 15
Based on headline earnings as given
above divided by 484,511,921
(September 2003 - 472,885,574 and
December 2002 - 471,777,323) being
the weighted average number of
ordinary shares in issue
Cash Flow Statements
International Financial Reporting Standards Basis
SA RAND
(Figures are in millions)
Quarter
December September December
2003 2003 2002
Cash flow from operating activities 676.7 31.6 1,340.4
Profit before tax and exceptional 369.6 286.6 1,178.3
items
Exceptional items 31.4 204.5 123.0
Amortisation and depreciation 307.5 298.8 351.3
Change in working capital 85.5 (211.2) 142.9
Taxation paid (50.7) (303.3) (41.9)
Other non-cash items (66.6) (243.8) (413.2)
Dividends paid - (472.4) (29.1)
Ordinary shareholders - (472.4) -
Minority shareholders in - - (29.1)
subsidiaries
Cash utilised in investing (647.3) (766.0) (485.4)
activities
Capital expenditure - additions (662.0) (552.7) (530.8)
Capital expenditure - proceeds on 29.5 56.5 0.8
disposal
Purchase of investments (57.3) (280.3) (61.2)
Proceeds on the disposal of 54.2 17.6 120.0
investments/subsidiary
Environmental and post-retirement (11.7) (7.1) (14.2)
health care payments
Cash flow from financing activities 1,407.3 (61.9) (229.1)
Loans repaid (103.2) (90.6) (200.5)
Minority shareholder's loan
received/(repaid) 15.7 12.4 (35.5)
Shares issued 1,494.8 16.3 6.9
Net cash inflow/(outflow) 1,436.7 (1,268.7) 596.8
Translation adjustment (53.4) (51.4) (110.0)
Cash at beginning of period (279.3) 1,040.8 1,439.1
Cash/(debt) at end of period 1,104.0 (279.3) 1,925.9
SA RAND
(Figures are in millions) Six months to
December December
2003 2002
Cash flow from operating activities 708.3 2,336.1
Profit before tax and exceptional items 656.2 2,138.9
Exceptional items 235.9 123.0
Amortisation and depreciation 606.3 693.2
Change in working capital (125.7) (19.4)
Taxation paid (354.0) (528.1)
Other non-cash items (310.4) (71.5)
Dividends paid (472.4) (1,067.6)
Ordinary shareholders (472.4) (1,038.5)
Minority shareholders in subsidiaries - (29.1)
Cash utilised in investing activities (1,413.3) (1,060.8)
Capital expenditure additions (1,214.7) (1,088.1)
Capital expenditure proceeds on disposal 86.0 0.9
Purchase of investments (337.6) (74.0)
Proceeds on the disposal of investments/ 71.8 120.0
subsidiary
Environmental and post-retirement health (18.8) (19.6)
care payments
Cash flow from financing activities 1,345.4 (205.0)
Loans repaid (193.8) (200.5)
Minority shareholder's loan received/ 28.1 (35.5)
(repaid)
Shares issued 1,511.1 31.0
Net cash inflow/(outflow) 168.0 2.7
Translation adjustment (104.8) (103.9)
Cash at beginning of period 1,040.8 2,027.1
Cash/(debt) at end of period 1,104.0 1,925.9
US DOLLARS
(Figures are in millions) Quarter
December September December
2003 2003 2002
Cash flow from operating activities 95.5 4.2 136.7
Profit before tax and exceptional 53.9 38.5 119.9
items
Exceptional items 5.7 27.5 12.2
Amortisation and depreciation 45.2 40.2 35.9
Change in working capital 10.7 (28.4) 13.7
Taxation paid (9.1) (40.8) (4.9)
Other non-cash items (10.9) (32.8) (40.1)
Dividends paid (63.2) (2.9)
Ordinary shareholders - (63.2) -
Minority shareholders in - - (2.9)
subsidiaries
Cash utilised in investing (96.0) (103.0) (50.0)
activities
Capital expenditure - additions (96.8) (74.3) (54.4)
Capital expenditure - proceeds on 4.5 7.6 0.1
disposal
Purchase of investments (9.8) (37.7) (6.2)
Proceeds on the disposal of 7.7 2.4 11.9
investments/subsidiary
Environmental and post-retirement (1.6) (1.0) (1.4)
health care payments
Cash flow from financing activities 198.2 (8.5) (24.5)
Loans repaid (14.6) (12.4) (21.5)
Minority shareholder's loan received 2.2 1.7 (3.8)
/(repaid)
Shares issued 210.6 2.2 0.8
Net cash inflow/(outflow) 197.7 (170.5) 59.3
Translation adjustment 1.8 (1.9) 22.6
Cash at beginning of period (38.8) 133.6 135.5
Cash/(debt) at end of period 160.7 (38.8) 217.4
US DOLLARS
(Figures are in millions) Six months to
December December
2003 2002
Cash flow from operating activities 99.7 232.0
Profit before tax and exceptional items 92.4 212.5
Exceptional items 33.2 12.2
Amortisation and depreciation 85.4 68.8
Change in working capital (17.7) (1.9)
Taxation paid (49.9) (52.4)
Other non-cash items (43.7) (7.2)
Dividends paid (63.2) (99.5)
Ordinary shareholders (63.2) (96.6)
Minority shareholders in subsidiaries - (2.9)
Cash utilised in investing activities (199.0) (105.4)
Capital expenditure additions (171.1) (108.1)
Capital expenditure proceeds on disposal 12.1 0.1
Purchase of investments (47.5) (7.4)
Proceeds on the disposal of investments/ 10.1 11.9
subsidiary
Environmental and post-retirement health (2.6) (1.9)
care payments
Cash flow from financing activities 189.7 (22.2)
Loans repaid (27.0) (21.5)
Minority shareholder's loan received/ 3.9 (3.8)
(repaid)
Shares issued 212.8 3.1
Net cash inflow/(outflow) 27.2 4.9
Translation adjustment (0.1) 16.8
Cash at beginning of period 133.6 195.7
Cash/(debt) at end of period 160.7 217.4
Derivatives
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.
On 7 January 2004, Gold Fields Australia entered into equal and opposite
transactions regarding the Australian dollar/United States dollar currency
financial instruments. The existing forward purchases of Australian dollars and
the put and call options were closed out by entering into equal and opposite
transactions. The close out of the outstanding open position of US$275 million*
was at an average spot rate of 0.7670 US$/AU$. These transactions locked in
gross profit amounting to US$115.7 million and the underlying cash receipts
were deferred to match the maturity dates of the original transactions. An
amount of US$102.8 million has already been accounted for up until the end of
December 2003. In addition, in order that the Group is able to participate in
further Australian dollar appreciation a strip of quarterly maturing Australian
dollar/US dollar call options were purchased in respect of an amount of US$275
million of which the value dates and amounts match those of the original
structure. The Australian dollar call options resulted in a cost of US$8.3
million, which was also deferred to match the maturity dates of the original
structure. The average strike price of the options is 0.7670 US$/AU$. The
future US dollar locked-in value and cost of the new structure is depicted in
the table below:
*At the end of December the outstanding instruments amounted to US$288 million.
Subsequent to the end of December, an amount of US$13 million matured leaving a
balance of US$275 million outstanding on such instruments.
Payment value dates
(All figures in US
dollars 000's) Gross Profit Deferred Cost Net Future Cashflows
31 March 2004 6,632 217 6,415
30 June 2004 6,433 278 6,155
30 September 2004 11,578 628 10,950
31 December 2004 11,216 676 10,540
31 March 2005 10,911 716 10,195
30 June 2005 10,634 749 9,885
30 September 2005 10,336 776 9,560
30 December 2005 10,074 799 9,275
31 March 2006 9,845 825 9,020
30 June 2006 9,568 848 8,720
29 September 2006 9,331 871 8,460
29 December 2006 9,140 895 8,245
TOTAL 115,698 8,278 107,420
The call options purchased at a cost of US$8.3 million are detailed below:
US DOLLAR / AUSTRALIAN
DOLLAR
2004 2005 2006 2007 TOTAL
Year ended 30 June
Australian dollar call
options:
Amount (US Dollars)
-000's 12,500 87,500 100,000 75,000 275,000
Average strike price
(US$/AU$) 0.7670 0.7670 0.7670 0.7670 0.7670
US DOLLAR / RAND
2004 2005 2006 2007 TOTAL
Year ended 30 June
Forward purchases:
Amount (US Dollars)-000's 50,000 - - - 50,000
Average rate (ZAR/US$) 8.4264 - - - 8.4264
During the quarter, additional forward cover of US$10 million was purchased in
respect of the Tarkwa mill and owner mining projects. The total forward
purchase of US$50 million matures on 3 June 2004. The marked to market value of
all transactions making up the positions in the above table was a negative
R63.8 million (US$9.3 million negative). The value was based on an exchange
rate of ZAR/US$ 6.87 and the prevailing interest rates and volatilities at the
time.
Total Cash Costs
Gold Institute Industry Standard
(All figures are in Rand millions unless otherwise stated)
SA OPERATIONS
Total Mine
Operations Total Driefontein Kloof Beatrix
Operating costs (1)
December 2003 2,354.7 1,700.2 648.0 651.6 400.6
September 2003 2,341.8 1,685.8 636.1 649.2 400.5
Financial
year to date 4,696.5 3,386.0 1,284.1 1,300.8 801.1
Gold in process and
inventory change*
December 2003 21.9 - - - -
September 2003 36.4 - - - -
Financial
year to date 58.3 - - - -
Less:
Rehabilitation costs
December 2003 10.0 9.0 2.8 5.4 0.8
September 2003 10.2 9.0 2.8 5.3 0.9
Financial
year to date 20.2 18.0 5.6 10.7 1.7
Production taxes
December 2003 8.7 8.7 2.1 4.9 1.7
September 2003 7.8 7.8 1.9 4.4 1.5
Financial
year to date 16.5 16.5 4.0 9.3 3.2
General and admin
December 2003 88.4 61.5 25.9 20.9 14.7
September 2003 82.6 53.0 23.6 18.5 10.9
Financial
year to date 171.0 114.5 49.5 39.4 25.6
Cash operating costs
December 2003 2,269.5 1,621.0 617.2 620.4 383.4
September 2003 2,277.6 1,616.0 607.8 621.0 387.2
Financial
year to date 4,547.1 3,237.0 1,225.0 1,241.4 770.6
Plus:
Production taxes
December 2003 8.7 8.7 2.1 4.9 1.7
September 2003 7.8 7.8 1.9 4.4 1.5
Financial
year to date 16.5 16.5 4.0 9.3 3.2
Royalties
December 2003 29.7 - - - -
September 2003 29.2 - - - -
Financial
year to date 58.9 - - - -
TOTAL CASH
COSTS(2)
December 2003 2,307.9 1,629.7 619.3 625.3 385.1
September 2003 2,314.6 1,623.8 609.7 625.4 388.7
Financial
year to date 4,622.5 3,253.5 1,229.0 1,250.7 773.8
Plus:
Amortisation*
December 2003 285.4 137.4 53.5 63.2 20.7
September 2003 279.4 137.6 57.1 59.5 21.0
Financial
year to date 564.8 275.0 110.6 122.7 41.7
Rehabilitation
December 2003 10.0 9.0 2.8 5.4 0.8
September 2003 10.2 9.0 2.8 5.3 0.9
Financial
year to date 20.2 18.0 5.6 10.7 1.7
TOTAL
PRODUCTION
COSTS(3)
December 2003 1,776.1 675.6 693.9 406.6
2,603.3
September 2003 2,604.2 1,770.4 669.6 690.2 410.6
Financial
year to date 5,207.5 3,546.5 1,345.2 1,384.1 817.2
Gold sold
thousand ounces
December 2003 1,107.6 698.1 272.3 265.1 160.8
September 2003 1,101.4 710.6 289.0 262.4 159.2
Financial
year to date 2,209.0 1,408.7 561.3 527.5 320.0
TOTAL CASH
COSTS
US$/o
z
December 2003 308 345 336 349 354
September
2003 282 307 284 320 328
Financial
year to date 295 325 308 334 341
TOTAL
PRODUCTION
COSTS -
US$/oz
December 2003 348 376 367 387 374
September
2003 318 335 311 353 347
Financial
year to date 332 355 338 370 360
Total Cash Costs
Gold Institute Industry Standard
(All figures are in Rand millions unless otherwise stated)
Ghana Australia
Total Tarkwa Damang St Ives Agnew
Operating costs (1)
December 2003 654.5 206.0 112.6 272.5 63.4
September 2003 656.0 219.6 119.2 248.6 68.6
Financial year to date 1,310.5 425.6 231.8 521.1 132.0
Gold in process
and inventory change*
December 2003 2 1 .9 11.9 8.2 (4.7) 6.5
September 2003 3 6 .4 11.0 (0.5) 12.4 13.5
Financial year to date 5 8 .3 22.9 7.7 7.7 20.0
Less:
Rehabilitation costs
December 2003 1.0 0.1 0.3 0.4 0.2
September 2003 1.2 0.2 0.3 0.5 0.2
Financial year to date 2.2 0.3 0.6 0.9 0.4
Production taxes
December 2003 - - - - -
September 2003 - - - - -
Financial year to date - - - - -
General and admin
December 2003 26.9 11.5 2.9 10.7 1.8
September 2003 29.6 12.0 3.1 13.1 1.4
Financial year to date 56.5 23.5 6.0 23.8 3.2
Cash operating costs
December 2003 648.5 206.3 117.6 256.7 67.9
September 2003 661.6 218.4 115.3 247.4 80.5
Financial year to date 1,310.1 424.7 232.9 504.1 148.4
Plus: Production taxes
December 2003 - - - - -
September 2003 - - - - -
Financial year to date - - - - -
Royalties
December 2003 2 9 .7 11.3 6.3 8.9 3.2
September 2003 2 9 .2 11.9 5.6 8.6 3.1
Financial year to date 5 8 .9 23.2 11.9 17.5 6.3
TOTAL CASH COSTS(2)
December 2003 678.2 217.6 123.9 265.6 71.1
September 2003 690.8 230.3 120.9 256.0 83.6
Financial year to date 1,369.0 447.9 244.8 521.6 154.7
Plus: Amortisation*
December 2003 148.0 25.2 12.0 110.8
September 2003 141.8 27.5 14.4 99.9
Financial year to date 289.8 52.7 26.4 210.7
Rehabilitation
December 2003 1.0 0.1 0.3 0.6
September 2003 1.2 0.2 0.3 0.7
Financial year to date 2.2 0.3 0.6 1.3
TOTAL PRODUCTION
COSTS(3)
December 2003 827.2 242.9 136.2 448.1
September 2003 833.8 258.0 135.6 440.2
Financial year to date 1,661.0 500.9 271.8 888.3
Gold sold thousand
ounces
December 2003 409.5 141.8 77.5 140.1 50.1
September 2003 390.8 147.7 70.1 127.0 45.9
Financial year to date 800.3 289.5 147.6 267.2 96.0
TOTAL CASH COSTS US$/oz
December 2003 245 227 236 280 210
September 2003 238 210 232 271 245
Financial year to date 241 218 234 275 227
TOTAL PRODUCTION COSTS
- US$/oz
December 2003 299 253 260 348
September 2003 287 235 260 342
Financial year to date 292 244 260 344
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 = R6.76 and US$1 = R7.44 for the December 2003
and September 2003 quarters respectively.
Operating and Financial Results
SA RAND SA Operations
Total Mine
Operations Total Driefontein Kloof Beatrix
Operating Results
Ore milled /
treated (000 tons)
December 2003 11,640 4,232 1,558 1,284 1,390
September 2003 11,497 4,233 1,603 1,247 1,383
Financial year
to date 23,137 8,465 3,161 2,531 2,773
Yield (grams per ton)
December 2003 3.0 5.1 5.4 6.4 3.6
September 2003 3.0 5.2 5.6 6.5 3.6
Financial year to
date 3.0 5.2 5.5 6.5 3.6
Gold produced
(kilograms)
December 2003 34,451 21,714 8,469 8,244 5,001
September 2003 34,257 22,102 8,988 8,163 4,951
Financial year
to date 68,708 43,816 17,457 16,407 9,952
Gold sold (kilograms)
December 2003 34,451 21,714 8,469 8,244 5,001
September 2003 34,257 22,102 8,988 8,163 4,951
Financial year
to date 68,708 43,816 17,457 16,407 9,952
Gold price received
(Rand per kilogram)
December 2003 84,842 84,586 84,579 85,104 83,743
September 2003 86,184 86,037 85,570 86,243 86,548
Financial year
to date 85,511 85,318 85,089 85,671 85,139
Total cash costs
(Rand per kilogram)
December 2003 66,991 75,053 73,126 75,849 77,005
September 2003 67,566 73,468 67,835 76,614 78,509
Financial year
to date 67,277 74,254 70,402 76,230 77,753
Total production
costs
(Rand per kilogram)
December 2003 75,565 81,795 79,773 84,170 81,304
September 2003 76,019 80,101 74,499 84,552 82,933
Financial year
to date 75,792 80,941 77,058 84,360 82,114
Operating costs
(Rand per ton)
December 2003 202 402 416 507 288
September 2003 204 398 397 521 290
Financial year
to date 203 400 406 514 289
Financial Results
(Rand million)
Revenue
December 2003 2,922.9 1,836.7 716.3 701.6 418.8
September 2003 2,952.4 1,901.6 769.1 704.0 428.5
Financial year
to date 5,875.3 3,738.3 1,485.4 1,405.6 847.3
Operating costs
December 2003 2,354.7 1,700.2 648.0 651.6 400.6
September 2003 2,341.8 1,685.8 636.1 649.2 400.5
Financial year
to date 4,696.5 3,386.0 1,284.1 1,300.8 801.1
Gold inventory change
December 2003 23.6 - - - -
September 2003 40.8 - - - -
Financial year
to date 64.4 - - - -
Operating profit
December 2003 544.6 136.5 68.3 50.0 18.2
September 2003 569.8 215.8 133.0 54.8 28.0
Financial year
to date 1,114.4 352.3 201.3 104.8 46.2
Amortisation of
mining assets
December 2003 283.8 137.5 53.6 63.2 20.7
September 2003 275.0 137.6 57.1 59.5 21.0
Financial year
to date 558.8 275.1 110.7 122.7 41.7
Net operating
profit
December 2003 260.8 (1.0) 14.7 (13.2) (2.5)
September 2003 294.8 78.2 75.9 (4.7) 7.0
Financial year
to date 555.6 77.2 90.6 (17.9) 4.5
Other income/
(expenses)
December 2003 120.9 (17.0) (11.0) (1.4) (4.6)
September 2003 54.8 (10.5) (6.2) (4.1) (0.2)
Financial year
to date 175.7 (27.5) (17.2) (5.5) (4.8)
Profit before
taxation
December 2003 381.7 (18.0) 3.7 (14.6) (7.1)
September 2003 349.6 67.7 69.7 (8.8) 6.8
Financial year
to date 731.3 9.7 73.4 (23.4) (0.3)
Mining and
income taxation
December 2003 95.4 (22.7) (4.5) (15.5) (2.7)
September 2003 53.5 (62.2) (42.1) (24.0) 3.9
Financial year
to date 148.9 (84.9) (46.6) (39.5) 1.2
- Normal taxation
December 2003 34.2 (0.2) (0.1) (0.3) 0.2
September 2003 35.0 1.3 0.6 0.6 0.1
Financial year
to date 69.2 1.1 0.5 0.3 0.3
- Deferred
taxation
December 2003 61.2 (22.5) (4.4) (15.2) (2.9)
September 2003 18.5 (63.5) (42.7) (24.6) 3.8
Financial year
to date 79.7 (86.0) (47.1) (39.8) 0.9
Exceptional
items
December 2003 (0.2) (2.1) (1.0) (1.2) 0.1
September 2003 188.4 187.2 187.2 - -
Financial year
to date 188.2 185.1 186.2 (1.2) 0.1
Net earnings
December 2003 286.1 2.6 7.2 (0.3) (4.3)
September 2003 484.5 317.1 299.0 15.2 2.9
Financial year
to date 770.6 319.7 306.2 14.9 (1.4)
Capital
expenditure
(Rand million)
December 2003 586.1 251.9 81.7 87.4 82.8
September 2003 535.9 288.6 87.9 123.7 77.0
Financial year
to date 1,122.0 540.5 169.6 211.1 159.8
Planned for next
six months to
June 2004 1,583.6 340.3 89.6 144.9 105.8
Operating and Financial Results
SA RAND International
Total Ghana Australia#
Tarkwa Damang St Ives Agnew
Operating Results
Ore milled /
treated (000 tons)
December 2003 7,408 3,918 1,358 1,845 287
September 2003 7,264 4,080 1,186 1,688 310
Financial year
to date 14,672 7,998 2,544 3,533 597
Yield (grams per
ton)
December 2003 1.7 1.1 1.8 2.4 5.4
September 2003 1.7 1.1 1.8 2.3 4.6
Financial year
to date 1.7 1.1 1.8 2.4 5.0
Gold produced
(kilograms)
December 2003 12,737 4,409 2,411 4,359 1,558
September 2003 12,155 4,595 2,181 3,951 1,428
Financial year
to date 24,892 9,004 4,592 8,310 2,986
Gold sold
(kilograms)
December 2003 12,737 4,409 2,411 4,359 1,558
September 2003 12,155 4,595 2,181 3,951 1,428
Financial year
to date 24,892 9,004 4,592 8,310 2,986
Gold price received
(Rand per kilogram)
December 2003 85,279 86,105 84,997 85,366
85,076
September 2003 86,450 86,355 85,878 86,940 86,275
Financial year
to date 85,851 85,729 85,977 85,921 85,800
Total cash costs
(Rand per kilogram)
December 2003 53,246 51,389 60,931 45,635
49,354
September 2003 56,833 50,120 55,433 64,794 58,543
Financial year
to date 54,998 49,745 53,310 62,768 51,808
Total production
costs (Rand per
kilogram)
December 2003 64,945 55,092 56,491 75,731
September 2003 68,597 56,148 62,173 81,837
Financial year
to date 66,728 55,631 59,190 78,648
Operating costs
(Rand per ton)
December 2003 88 53 83 148 221
September 2003 90 54 101 147 221
Financial year
to date 89 53 91 147 221
Financial Results
(Rand million)
Revenue
December 2003 1,086.2 375.1 207.6 370.5 133.0
September 2003 1,050.8 396.8 187.3 343.5 123.2
Financial year
to date 2,137.0 771.9 394.9 714.0 256.2
Operating costs
December 2003 654.5 206.0 112.6 272.5 63.4
September 2003 656.0 219.6 119.2 248.6 68.6
Financial year
to date 1,310.5 425.6 231.8 521.1 132.0
Gold inventory
change
December 2003 23.6 12.7 8.2 (5.7) 8.4
September 2003 40.8 11.9 (0.5) 16.0 13.4
Financial year
to date 64.4 24.6 7.7 10.3 21.8
Operating profit
December 2003 408.1 156.4 86.8 103.7 61.2
September 2003 354.0 165.3 68.6 78.9 41.2
Financial year
to date 762.1 321.7 155.4 182.6 102.4
Amortisation of
mining assets
December 2003 146.3 24.4 12.0 109.9
September 2003 137.4 26.6 14.4 96.4
Financial year
to date 283.7 51.0 26.4 206.3
Net operating
profit
December 2003 261.8 132.0 74.8 55.0
September 2003 216.6 138.7 54.2 23.7
Financial year
to date 478.4 270.7 129.0 78.7
Other income/
(expenses)
December 2003 137.9 1.7 0.3 135.9
September 2003 65.3 1.4 (0.9) 64.8
Financial year
to date 203.2 3.1 (0.6) 200.7
Profit before
taxation
December 2003 399.7 133.7 75.1 190.9
September 2003 281.9 140.1 53.3 88.5
Financial year
to date 681.6 273.8 128.4 279.4
Mining and
income taxation
December 2003 118.1 54.1 7.3 56.7
September 2003 115.7 56.6 24.0 35.1
Financial year
to date 233.8 110.7 31.3 91.8
- Normal taxation
December 2003 34.4 14.3 8.0 12.1
September 2003 33.7 15.2 6.8 11.7
Financial year
to date 68.1 29.5 14.8 23.8
- Deferred taxation
December 2003 83.7 39.8 (0.7) 44.6
September 2003 82.0 41.4 17.2 23.4
Financial year
to date 165.7 81.2 16.5 68.0
Exceptional items
December 2003 1.9 - - 1.9
September 2003 1.2 - - 1.2
Financial year
to date 3.1 - - 3.1
Net earnings
December 2003 283.5 79.6 67.8 136.1
September 2003 167.4 83.5 29.3 54.6
Financial year
to date 450.9 163.1 97.1 190.7
Capital expenditure
(Rand million)
December 2003 334.2 106.6 33.5
189.1 5.0
September 2003 247.3 81.0 7.3 125.7 33.3
Financial year
to date 581.5 270.1 12.3 232.3 66.8
Planned for next
six months to
June 2004 1,243.3 788.6 3.6 382.5 68.6
# As a significant
portion of the
acquisition price
was allocated to
tenements
of St Ives and
Agnew on endowment
ounces and also as
these two
Australian
operations are
entitled to
transfer and then
off-set tax losses
from one
company to another,
it is not
meaningful to split
the income
statement below
operating profit.
Operating and Financial Results
US DOLLARS SA Operations
Total Mine
Operations Total Driefontein Kloof Beatrix
Operating Results
Ore milled /
treated (000 tons)
December 2003 11,640 4,232 1,558 1,284 1,390
September 2003 11,497 4,233 1,603 1,247 1,383
Financial year
to date 23,137 8,465 3,161 2,531 2,773
Yield (ounces
per ton)
December 2003 0.095 0.165 0.175 0.206 0.116
September 2003 0.096 0.168 0.180 0.210 0.115
Financial year
to date 0.095 0.166 0.178 0.208 0.115
Gold produced
(000 ounces)
December 2003 1,107.6 698.1 272.3 265.1 160.8
September 2003 1,101.4 710.6 289.0 262.4 159.2
Financial year
to date 2,209.0 1,408.7 561.3 527.5 320.0
Gold sold
(000 ounces)
December 2003 1,107.6 698.1 272.3 265.1 160.8
September 2003 1,101.4 710.6 289.0 262.4 159.2
Financial year
to date 2,209.0 1,408.7 561.3 527.5 320.0
Gold price received
(Dollars per ounce)
December 2003 390 389 389 392 385
September 2003 360 360 358 361 362
Financial year
to date 375 374 373 375 373
Total cash costs
(Dollars per ounce)
December 2003 308 345 336 349 354
September 2003 282 307 284 320 328
Financial year
to date 295 325 308 334 341
Total production
costs (Dollars
per ounce)
December 2003 348 376 367 387 374
September 2003 318 335 311 353 347
Financial year
to date 332 355 338 370 360
Operating costs
(Dollars per ton)
December 2003 30 59 62 75 43
September 2003 27 54 53 70 39
Financial year
to date 29 56 57 72 41
Financial Results
($ million)
Revenue
December 2003 430.7 270.9 105.8 103.4 61.7
September 2003 396.8 255.6 103.4 94.6 57.6
Financial year
to date 827.5 526.5 209.2 198.0 119.3
Operating costs
December 2003 346.7 250.3 95.4 95.9 59.0
September 2003 314.8 226.6 85.5 87.3 53.8
Financial year
to date 661.5 476.9 180.9 183.2 112.8
Gold inventory
change
December 2003 3.6 - - - -
September 2003 5.5 - - - -
Financial year
to date 9.1 - - - -
Operating profit
December 2003 80.4 20.7 10.5 7.4 2.7
September 2003 76.5 29.0 17.9 7.4 3.8
Financial year
to date 156.9 49.6 28.4 14.8 6.5
Amortisation of
mining assets
December 2003 41.7 20.3 7.9 9.3 3.1
September 2003 37.0 18.5 7.7 8.0 2.8
Financial year
to date 78.7 38.7 15.6 17.3 5.9
Net operating
profit
December 2003 38.7 0.4 2.6 (18) (0.3)
September 2003 39.5 10.5 10.2 (0.6) 0.9
Financial year
to date 78.3 10.9 12.8 (2.5) 0.6
Other income/
(expenses)
December 2003 17.4 (2.5) (1.6) (0.2) (0.6)
September 2003 7.4 (1.4) (0.8) (0.6) (0.0)
Financial year
to date 24.7 (3.9) (2.4) (0.8) (0.7)
Profit before
taxation
December 2003 56.1 (2.1) 1.0 (2.1) (1.0)
September 2003 46.9 9.1 9.4 (1.2) 0.9
Financial year
to date 103.0 7.0 10.3 (3.3) (0.0)
Mining and
income taxation
December 2003 13.8 (3.6) (0.9) (2.3) (0.4)
September 2003 7.2 (8.4) (5.7) (3.2) 0.5
Financial year
to date 21.0 (12.0) (6.6) (5.6) 0.2
- Normal taxation
December 2003 5.0 (0.0) (0.0) (0.0) 0.0
September 2003 4.7 0.2 0.1 0.1 0.0
Financial year
to date 9.7 0.2 0.1 0.0 0.0
- Deferred taxation
December 2003 8 .7 (3.6) (0.9) (2.3) (0.4)
September 2003 2.5 (8.5) (5.7) (3.3) 0.5
Financial year
to date 11.2 (12.1) (6.6) (5.6) 0.1
Exceptional items
December 2003 1.2 0.9 1.1 (0.2) 0.0
September 2003 25.3 25.2 25.2 - -
Financial year
to date 26.5 26.1 26.2 (0.2) 0.0
Net earnings
December 2003 43.5 2.5 2.9 0.1 (0.6)
September 2003 65.0 42.6 40.2 2.0 0.4
Financial year
to date 108.5 45.0 43.1 2.1 (0.2)
Capital expenditure
($ million)
December 2003 88.9 38.6 12.5 13.5 12.6
September 2003 74.4 40.1 12.2 17.2 10.7
Financial year
to date 163.3 78.7 24.7 30.7 23.3
Planned for
next six months
to June 2004 230.5 49.5 13.0 21.1 15.4
Average exchange rates are US$1 = R6.76 and US$1 = R7.44 for the December 2003
and September 2003 quarters respectively. The Australian Dollar exchange rates
were AU$1 = R4.80 and AU$1 = R4.89 for the December 2003 and September 2003
quarters respectively.
Figures may not add as they are rounded independently.
Operating and Financial Results
US DOLLARS International
Ghana Australia #
Total Tarkwa Damang St Ives Agnew
Operating Results
Ore milled /
treated (000 tons)
December 2003 7,408 3,918 1,358 1,845 287
September 2003 7,264 1,186 1,688 310
4,080
Financial year
to date 14,672 7,998 2,544 3,533 597
Yield (ounces
per ton)
December 2003 0.055 0.036 0.057 0.076 0.175
September 2003 0.054 0.036 0.059 0.075 0.148
Financial year
to date 0.055 0.036 0.058 0.076 0.161
Gold produced
(000 ounces)
December 2003 409.5 141.8 77.5 140.1 50.1
September 2003 390.8 147.7 70.1 127.0 45.9
Financial year
to date 800.3 289.5 147.6 267.2 96.0
Gold sold
(000 ounces)
December 2003 409.5 141.8 77.5 140.1 50.1
September 2003 390.8 147.7 70.1 127.0 45.9
Financial year
to date 800.3 289.5 147.6 267.2 96.0
Gold price received
(Dollars per ounce)
December 2003 392 391 396 391 393
September 2003 361 361 359 363 361
Financial year
to date 376 376 377 376 376
Total cash costs
(Dollars per ounce)
December 2003 245 227 236 280 210
September 2003 238 210 232 271 245
Financial year
to date 241 218 234 275 227
Total production
costs (Dollars
per ounce)
December 2003 299 253 260 348
September 2003 287 235 260 342
Financial year
to date 292 244 260 344
Operating costs
(Dollars per ton)
December 2003 13 8 12 22 33
September 2003 12 7 14 20 30
Financial year
to date 13 7 13 21 31
Financial Results
($ million)
Revenue
December 2003 159.7 55.4 30.4 54.4 19.5
September 2003 141.2 53.3 25.2 46.2 16.6
Financial year
to date 301.0 108.7 55.6 100.6 36.1
Operating costs
December 2003 96.4 30.4 16.6 40.0 9.4
September 2003 88.2 29.5 16.0 33.4 9.2
Financial year
to date 184.6 59.9 32.6 73.4 18.6
Gold inventory
change
December 2003 3.6 1.9 1.2 (0.7) 1.3
September 2003 5.5 1.6 (0.1) 2.2 1.8
Financial year
to date 9.1 3.5 1.1 1.5 3.1
Operating profit
December 2003 59.8 23.1 12.7 15.1 8.9
September 2003 47.6 22.2 9.2 10.6 5.5
Financial year
to date 107.3 45.3 21.9 25.7 14.4
Amortisation of
mining assets
December 2003 21.5 3.6 1.8 16.1
September 2003 18.5 3.6 1.9 13.0
Financial year
to date 40.0 7.2 3.7 29.1
Net operating
profit
December 2003 38.3 19.5 10.9 7.9
September 2003 29.1 18.6 7.3 3.2
Financial year
to date 67.4 38.1 18.2 11.1
Other income/
(expenses)
December 2003 19.8 0.2 0.0 19.6
September 2003 8.8 0.2 (0.1) 8.7
Financial year
to date 28.6 0.4 (0.1) 28.3
Profit before
taxation
December 2003 58.1 19.7 10.9 27.5
September 2003 37.9 18.8 7.2 11.9
Financial year
to date 96.0 38.6 18.1 39.4
Mining and
income taxation
December 2003 17.4 8.0 1.2 8.2
September 2003 15.6 7.6 3.2 4.7
Financial year
to date 32.9 15.6 4.4 12.9
- Normal taxation
December 2003 5.1 2.1 1.2 1.8
September 2003 4.5 2.0 0.9 1.6
Financial year
to date 9.6 4.2 2.1 3.4
- Deferred taxation
December 2003 12.3 5.9 0.0 6.4
September 2003 11.0 5.6 2.3 3.1
Financial year
to date 23.3 11.4 2.3 9.6
Exceptional items
December 2003 0.3 - - 0.3
September 2003 0.2 - - 0.2
Financial year
to date 0.4 - - 0.4
Net earnings
December 2003 41.0 11.7 9.7 19.5
September 2003 22.5 11.2 3.9 7.3
Financial year
to date 63.5 23.0 13.7 26.9
Capital expenditure
($ million)
December 2003 50.3 28.1 0.8 16.4 5.1
September 2003 34.3 11.3 1.0 17.5 4.6
Financial year
to date 84.6 39.3 1.8 33.8 9.7
Planned for next
six months to
June 2004 181.0 114.8 0.5 55.7 10.0
Operating and Financial Results
US DOLLARS
Australian Dollars
Australia #
St Ives Agnew
Operating Results
Ore milled /
treated (000 tons)
December 2003 1,845 287
September 2003 1,688 310
Financial year
to date 3,533 597
Yield (ounces
per ton)
December 2003 0.076 0.175
September 2003 0.075 0.148
Financial year
to date 0.076 0.161
Gold produced
(000 ounces)
December 2003 140.1 50.1
September 2003 127.0 45.9
Financial year
to date 267.2 96.0
Gold sold
(000 ounces)
December 2003 140.1 50.1
September 2003 127.0 45.9
Financial year
to date 267.2 96.0
Gold price received
(Dollars per ounce)
December 2003 551 553
September 2003 553 549
Financial year
to date 550 549
Total cash costs
(Dollars per ounce)
December 2003 395 296
September 2003 412 372
Financial year
to date 402 332
Total production
costs (Dollars
per ounce)
December 2003 491
September 2003 521
Financial year
to date 503
Operating costs
(Dollars per ton)
December 2003 31 46
September 2003 30 45
Financial year
to date 30 45
Financial Results
($ million)
Revenue
December 2003 76.7 27.5
September 2003 70.2 25.2
Financial year
to date 146.9 52.7
Operating costs
December 2003 56.4 13.1
September 2003 50.8 14.0
Financial year
to date 107.2 27.2
Gold inventory
change
December 2003 (1.2) 1.8
September 2003 3.3 2.7
Financial year
to date 2.1 4.5
Operating profit
December 2003 21.4 12.6
September 2003 16.1 8.4
Financial year
to date 37.6 21.1
Amortisation of
mining assets
December 2003 22.7
September 2003 19.7
Financial year
to date 42.4
Net operating
profit
December 2003 11.3
September 2003 4.8
Financial year
to date 16.2
Other income/
(expenses)
December 2003 28.0
September 2003 13.3
Financial year
to date 41.3
Profit before
taxation
December 2003 39.3
September 2003 18.1
Financial year
to date 57.5
Mining and
income taxation
December 2003 11.7
September 2003 7.2
Financial year
to date 18.9
- Normal taxation
December 2003 2.5
September 2003 2.4
Financial year
to date 4.9
- Deferred taxation
December 2003 9.2
September 2003 4.8
Financial year
to date 14.0
Exceptional items
December 2003 0.4
September 2003 0.2
Financial year
to date 0.6
Net earnings
December 2003 28.0
September 2003 11.2
Financial year
to date 39.2
Capital expenditure
($ million)
December 2003 20.5 6.5
September 2003 25.6 6.8
Financial year
to date 46.1 13.3
Planned for next
six months to
June 2004 75.9 13.6
Average exchange rates are US$1 = R6.76 and US$1 = R7.44 for the December 2003
and September 2003 quarters respectively. The Australian Dollar exchange rates
were AU$1 = R4.80 and AU$1 = R4.89 for the December 2003 and September 2003
quarters respectively.
# 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
SA OPERATIONS
Operating Results Total Mine
Operations Total Driefontein Kloof Beatrix
Ore milled/
treated
(000 ton)
- underground
December 2003 3,306 2,871 950 921 1,000
September 2003 3,435 3,017 994 969 1,054
Financial year
to date 6,741 5,888 1,944 1,890 2,054
- surface
December 2003 8,334 1,361 608 363 390
September 2003 8,062 1,216 609 278 329
Financial year
to date 16,396 2,577 1,217 641 719
- total
December 2003 11,640 4,232 1,558 1,284 1,390
September 2003 11,497 4,233 1,603 1,247 1,383
Financial year
to date 23,137 8,465 3,161 2,531 2,773
Yield (grams
per ton)
- underground
December 2003 6.8 6.9 7.5 8.6 4.7
September 2003 6.8 6.8 8.1 8.1 4.4
Financial year
to date 6.8 6.9 7.8 8.4 4.6
- surface
December 2003 1.4 1.4 2.3 0.8 0.7
September 2003 1.3 1.3 1.6 1.0 0.8
Financial year
to date 1.4 1.3 1.9 0.9 0.8
- combined
December 2003 3.0 5.1 5.4 6.4 3.6
September 2003 3.0 5.2 5.6 6.5 3.6
Financial year
to date 3.0 5.2 5.5 6.5 3.6
Gold produced
(kilograms)
- underground
December 2003 22,529 19,763 7,092 7,958 4,713
September 2003 23,377 20,580 8,016 7,880 4,684
Financial year
to date 45,906 40,343 15,108 15,838 9,397
- surface
December 2003 11,922 1,951 1,377 286 288
September 2003 10,880 1,522 972 283 267
Financial year
to date 22,802 3,473 2,349 569 555
- total
December 2003 34,451 21,714 8,469 8,244 5,001
September 2003 34,257 22,102 8,988 8,163 4,951
Financial year
to date 68,708 43,816 17,457 16,407 9,952
Operating costs
(Rand per ton)
- underground
December 2003 539 565 635 685 387
September 2003 520 537 606 651 368
Financial year
to date 530 551 620 668 377
- surface
December 2003 69 58 74 56 36
September 2003 69 54 56 65 40
Financial year
to date 69 56 65 60 38
- total
December 2003 202 402 416 507 288
September 2003 204 398 397 521 290
Financial year
to date 203 400 406 514 289
Underground and Surface
SA Rand and Metric Units
INTERNATIONAL
Ghana Australia
Total Tarkwa Damang St Ives Agnew
Ore milled/
treated
(000 ton)
- underground
December 2003 435 - - 326 109
September 2003 418 - - 323 95
Financial year
to date 853 - - 649 204
- surface
December 2003 6,973 3,918 1,358 1,519 178
September 2003 6,846 4,080 1,186 1,365 215
Financial year
to date 13,819 7,998 2,544 2,884 393
- total
December 2003 7,408 3,918 1,358 1,845 287
September 2003 7,264 4,080 1,186 1,688 310
Financial year
to date 14,672 7,998 2,544 3,533 597
Yield (grams
per ton)
- underground
December 2003 6.4 - - 4.5 11.9
September 2003 6.7 - - 5.2 11.8
Financial year
to date 6.5 - - 4.8 11.9
- surface
December 2003 1.4 1.1 1.8 1.9 1.5
September 2003 1.4 1.1 1.8 1.7 1.4
Financial year
to date 1.4 1.1 1.8 1.8 1.4
- combined
December 2003 1.7 1.1 1.8 2.4 5.4
September 2003 1.7 1.1 1.8 2.3 4.6
Financial year
to date 1.7 1.1 1.8 2.4 5.0
Gold produced
(kilograms)
- underground
December 2003 2,766 - - 1,468 1,298
September 2003 2,797 - - 1,676
1,121
Financial year
to date 5,563 - - 3,144 2,419
- surface
December 2003 9,971 4,409 2,411 2,891 260
September 2003 9,358 4,595 2,181 2,275 307
Financial year
to date 19,329 9,004 4,592 5,166 567
- total
December 2003 12,737 4,409 2,411 4,359 1,558
September 2003 12,155 4,595 2,181 3,951 1,428
Financial year
to date 24,892 9,004 4,592 8,310 2,986
Operating cost
(Rand per ton)
- underground
December 2003 373 - - 355 428
September 2003 399 - - 364 516
Financial year
to date 386 - - 360 469
- surface
December 2003 71 53 83 103 94
September 2003 71 54 101 96 91
Financial year
to date 71 53 91 100 93
- total
December 2003 88 53 83 148 221
September 2003 90 54 101 147 221
Financial year
to date 89 53 91 148 221
Development Results
Development values represent the actual results of sampling and no allowance
has been made for any adjustments which may be necessary when estimating ore
reserves. All figures below exclude shaft sinking metres
Driefontein December September
2003 2003
quarter quarter
Reef Carbon Carbon
Leader Main VCR Leader Main VCR
Advanced (m) 5,382 970 1,571 5,195 1,149 1,572
Advanced
on reef (m) 765 370 285 855 384 131
Sampled (m) 609 276 234 900 216 114
Channel (cm) 130 57 104 120 84 97
width
Average (g/t) 14.9 8.5 20.8 18.0 9.8 31.5
value
(cm.g/t) 1,935 486 2,163 2,167 827 3,044
Driefontein Year to date
F2004
Carbon
Reef Leader Main VCR
Advanced (m) 10,577 2,119 3,143
Advanced
on reef (m) 1,620 754 416
Sampled (m) 1,509 492 348
Channel width (cm) 124 69 102
Average value (g/t) 16.7 9.2 24.1
(cm.g/t) 2,073 636 2,452
Kloof December 2003
quarter
Carbon
Reef Leader Kloof Main VCR
Advanced (m) 14 370 1,894 10,268
Advanced
on reef (m) 14 193 516 1,664
Sampled (m) 6 150 378 1,086
Channel width (cm) 46 93 78 92
Average value (g/t) 5.4 15.6 12.5 28.4
(cm.g/t) 247 1,442 975 2,621
Kloof September
2003
quarter
Carbon
Reef Leader Kloof Main VCR
Advanced (m) - 484 1,760 9,685
Advanced
on reef (m) - 200 509 1,814
Sampled (m) - 159 459 1,428
Channel width (cm) - 91 69 78
Average value (g/t) - 3.0 13.2 29.8
(cm.g/t) - 274 906 2,317
Kloof Year to date
F2004
Carbon
Reef Leader Kloof Main VCR
Advanced (m) 14 854 3,654 19,953
Advanced
on reef (m) 14 393 1,025 3,478
Sampled (m) 6 309 837 2,514
Channel width (cm) 46 92 73 84
Average value (g/t) 5.4 9.1 12.8 29.1
(cm.g/t) 247 841 937 2,448
Beatrix December Sept-ember Year to
2003 2003 date
quarter quarter F2004
Kalkoen- Kalkoen- Kalkoen-
Reef Beatrix krans Beatrix krans Beatrix krans
Advanced (m) 8,732 2,797 9,232 2,560 17,964 5,357
Advanced
on reef (m) 1,850 699 2,193 677 4,043 1,376
Sampled (m) 1,719 741 2,355 651 4,074 1,392
Channel (cm) 68 141 78 117 74 130
width
Average (g/t) 13.2 21.0 12.5 15.4 13.1 18.2
value
(cm.g/t) 895 2,972 1,018 1,678 966 2,367
CONTACT DETAILS
CORPORATE OFFICE
Gold Fields Limited London Office
24 St Andrews Road St James' Corporate Services
Parktown Limited
Johannesburg 6 St James' Place
2193 London SW1A 1 NP
Postnet Suite 252 Tel: +944 207 499-3916
Private Bag x 30500 Fax: +944 207 491-1989
Houghton 2041
Tel: +27 11 644-2400
Fax: +27 11 484-0626
DIRECTORS
C M T Thompson (Chairman) R L Pennant-Rea *
A J W right (Deputy Chairman) P J Ryan
I D Cockerill * (Chief Executive Officer) T M G Sexwale
G J Gerwel B R van Rooyen
N J Holland * (Chief Financial Officer) C I von Christierson
J M McMahon *
G R Parker #
Canadian * British #USA
COMPANY SECRETARY
C Farrel Postnet Suite 252
24 St Andrews Road Private Bag x 30500
Parktown Houghton 2041
Johannesburg Tel: +27 11 644-2406
2193 Fax: +27 11 484-0626
INVESTOR RELATIONS
Willie Jacobsz
Tel: +27 11 644-2460
Europe & South Africa North America
Nerina Bodasing Cheryl A. Martin
Tel: +27 11 644-2630 Tel: +1 303 796-8683
Fax: +27 11 484-0639 Fax: +1 303 796-8293
E-mail: investors@goldfields.co.za E-mail: camartin@gfexpl.com
TRANSFER OFFICES
Johannesburg London
Computershare Limited Capita Registrars
Ground Floor Bourne House
70 Marshall Street 34 Beckenham Road
Johannesburg, 2001 Beckenham Kent BR3 4TU
P O Box 61051 Tel: +944 208 639-2000
Marshalltown, 2107 Fax: +944 208 658-3430
Tel: 27 11 370-5000
Fax: 27 11 370-5271
AMERICAN DEPOSITARY RECEIPT BANKER
United States United Kingdom
Bank of New York Bank of New York
101 Barclay Street 46 Berkley Street
New York N.Y. 10286 London
USA W1X 6AA
Tel: +91 212 815-5133 Tel: +944 207 322-6341
Fax: +91 212 571-3050 Fax: +944 207 322-6028
FORWARD LOOKING STATEMENTS
Certain statements in this document constitute "forward looking statements"
within the meaning of Section 27A of the US Securities Act of 1933 and Section
21E of the US Securities Exchange Act of 1934.
Such forward looking statements involve known and unknown risks, uncertainties
and other important factors that could cause the actual results, performance or
achievements of the company to be materially different from the future results,
performance or achievements expressed or implied by such forward looking
statements. Such risks, uncertainties and other important factors include among
others: economic, business and political conditions in South Africa; decreases
in the market price of gold; hazards associated with underground and surface
gold mining; labour disruptions; changes in government regulations,
particularly environmental regulations; changes in exchange rates; currency
devaluations; inflation and other macro-economic factors; and the impact of the
AIDS crisis in South Africa. These forward looking statements speak only as of
the date of this document.
The company undertakes no obligation to update publicly or release any
revisions to these forward looking statements to reflect events or
circumstances after the date of this document or to reflect the occurrence of
unanticipated events.
Gold Fields Limited
Incorporated in the Republic of South Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN: ZAE 000018123
END
Randgold Ads (LSE:GOLD)
Gráfico Histórico do Ativo
De Out 2024 até Nov 2024
Randgold Ads (LSE:GOLD)
Gráfico Histórico do Ativo
De Nov 2023 até Nov 2024
