RNS Number:3910D
Gold Fields Ld
10 May 2001
GOLD FIELDS LIMITED
Registration Number 1968/004880/06
(Incorporated in the Republic of South Africa)
QUARTERLY RESULTS MARCH 2001
Quarter and nine months ended March 2001
STOCK DATA
Number of shares in issue 455 366 513
Free Float 100%
ADR Ratio 1:1
Bloomberg / Reuters GFISJ / GFLJ.J
JSE SECURITIES EXCHANGE SOUTH AFRICA- (GFI)
Range - Quarter SAR24.60 - SAR33.80
Average Volume - Quarter 872 214 shares / day
Range - 52 Weeks SAR19.70 - SAR35.50
Average Volume - 52 Weeks 854 987 shares / day
NASDAQ - (GOLD)
Range - Quarter $3.19 to $4.50
Average Volume - Quarter 475 000 shares / day
Range - 52 Weeks $2.56 to 5.06
Average Volume - 52 Weeks 370 000 shares / day
INVESTOR RELATIONS
Europe & South Africa
Willie Jacobsz
Tel: +27 11 644-2460
Fax: +27 11 484-0639
E-mail: investors@goldfields.co.za
North America
Cheryl A. Martin
Tel: +1 303 796-8683
Fax: +1 303 796-8293
E-mail: camartin@gfexpl.com
www.goldfields.co.za www.gold-fields.com
* Net earnings of R261 million, or 57 cents per share.
* Cash costs maintained at US$192 per ounce.
* Tarkwa delivers an excellent performance once again.
* Tarkwa debt retired.
Dear Shareholders,
Typically, the March quarter is a difficult one for the South African gold
producers because it includes the Christmas - New Year shutdown. Gold Fields
production was affected by this interruption followed by a slow restart. In
addition, Kloof had a noteably poor quarter. Net earnings for the quarter at
R261 million were 6% lower than the December quarter and attributable
production was 889,000 ozs, 5% lower than the previous quarter.
Operating profit was R457 million compared with R518 million in the previous
quarter. Gold Fields realised gold price was $264 per oz compared with $269
but because of the continued deterioration in the Rand exchange rate from
R7.60 to R7.82 to the Dollar our received Rand per kilogram price was
marginally higher at R66 497 versus R65 714. Cash costs were maintained at
$192 per ounce.
The Kloof complex had a disappointing quarter producing 285,000 ounces versus
324,000 the previous quarter. The downscaling of operations at Libanon in
part contributed to this but lower grades from both 3 shaft and 7 shaft were
the largest factor. We expect these lower grades to continue for the next 3-4
months. Cash costs increased from $196 to $207 per ounce. Despite lower
grades Driefontein reduced cash costs from $188 per ounce to $179 in this
quarter on slightly lower production.
Both Beatrix and Tarkwa continued to perform well despite mining lower grades.
Oryx has now been integrated into the Beatrix operation as Beatrix 4 Shaft.
Currently, Beatrix surface waste is being milled at Oryx, utilising the spare
capacity available in the Oryx plant.
For some months Gold Fields has been exploring various options to create an
empowerment vehicle through combining St. Helena with other operations.
Ultimately we have determined that at current gold prices the St. Helena asset
is not robust enough to create a worthy vehicle. The mine, in operation since
1946, is now uneconomic and it would be irresponsible to continue delivering
gold from it to a depressed gold market. A phased closure is therefore under
consideration.
Gold Fields has now earned a 30% vested interest in the Arctic Platinum
Project, which will rise to 51% on the completion of total expenditure of $13
million. Over $5 million has been spent to date. A scoping study of a 5
million ton a year operation has been completed and it supports continued
expenditure towards a final feasibility in June 2002. This project is likely
to grow in scope over the next year.
CHRIS THOMPSON
CHAIRMAN & CHIEF EXECUTIVE OFFICER
SA RAND SALIENT FEATURES US DOLLARS
Quarter Quarter
Dec 2000 Mar 2001 Mar 2001 Dec 2000
29,276 27,660 kg Gold produced* oz (000) 889 941
46,761 48,189 R/kg Cash costs $/oz 192 191
5,919 7,060 000 Tons milled 000 7,060 5,919
65,714 66,497 R/kg Revenue $/oz 264 269
249 208 R/ton Operating costs $/ton 27 33
518 457 Rm Operating profit $m 58 68
Earnings before
282 242 Rm exceptional items $m 31 37
- net of taxation
62 53 SA c.p.s. and minorities US c.p.s. 7 8
277 261 Rm Net earnings $m 33 36
61 57 SA c.p.s. US c.p.s. 7 8
*Attributable - All companies wholly owned except for Tarkwa (71.1%)
COMMENTARY
FINANCIAL
Net earnings for the March quarter were R261 million compared with R277
million in the December quarter a decline of R16 million or 6 per cent. Net
operating profit was R305 million a decline of R54 million or 15 per cent when
compared with the previous quarter.
Revenue at R1,882 million was R105 million lower than the previous quarter as
total gold production declined 5 per cent from 971,000 ounces to 923,000
ounces. These declines are attributable to a fall in grades from underground,
a change in the mix between underground and surface tons as Tarkwa's
throughput rose, further waste rock treated and a reduction in total tonnage
from underground. Total tonnage treated rose from 5.9 million tons to 7.1
million tons and underground tonnage declined by 230,000 tons. Attributable
production for the March quarter was 889,000 ounces compared to 941,000 ounces
in the previous quarter.
The continued weakening of the Rand from R7.60 to R7.82 per U.S. Dollar in the
March quarter more than offset the fall in the US dollar price from $269 to
$264 per ounce resulting in a marginally higher received price of R66,497 per
kilogram compared to R65,714 per kilogram in the previous quarter.
Increased volume and throughput at Tarkwa increased working costs by R49
million for the quarter. Despite this increase total group working costs fell
by R6 million in the quarter. The operating margin for the group fell from 26
per cent to 24 per cent for the quarter.
Other income for the March quarter increased by R11 million, to R55 million,
due to dividends received from Rand Refinery of R5 million and the receipt of
a R7 million insurance claim at Driefontein, relating to a seismic event on 28
September 2000.
Net earnings for the quarter amounted to R261 million after accounting for
exceptional items which related mainly to a R38 million profit (US$ 5.1
million) on the close-out of the hedge book of Gold Fields Ghana on 16
February 2001. The provision for taxation of R80 million is similar to the
previous quarter.
Capital expenditure in the March quarter was R251 million, marginally down
from R265 million in the previous quarter and remains concentrated on the key
projects in the Group, being the 4 sub-vertical shaft at Kloof, the 1 and 5
shaft complexes at Driefontein and the 3 shaft project at Beatrix. The strong
cash generation at Tarkwa enabled the full outstanding amount of the project
loan of US$ 25 million to be redeemed on 23 February 2001, some three years
ahead of schedule. The payment of a dividend amounting to R478 million and
the repayment of the project loan at Gold Fields Ghana of US$ 25 million
resulted in the net cash position decreasing to R155 million as compared to
R642 million at the December quarter.
OPERATIONS
The commitment by Gold Fields to the full compliance program has improved
safety standards and contributed to the continued decline in overall accident
rates across all the operations. Regrettably, however, 8 employees lost their
lives during the quarter mainly due to fall of ground at Driefontein. Our
thoughts go out to all the family and friends of our departed colleagues.
Gold Fields' commitment to safety continues at the highest level and is the
highest priority of the Group.
Note - ton refers to a metric ton.
Typically the first calendar quarter of the year is negatively affected by the
inclusion of the Christmas - New Year period shutdown and the inevitable slow
restart. All operations are generally affected to some degree but in this
quarter Kloof was particularly impacted with this division having a noteably
poor quarter.
The one million increase in tons treated at Tarkwa, reduced the group cost per
ton of ore milled to R208 in the current quarter compared to R249 in the
previous quarter. The increased tonnage attributable to Tarkwa was partially
offset by a reduction in underground ore treated at Kloof and Driefontein.
Group cash costs remained virtually unchanged at US$192 per ounce, assisted by
the weakening rand/dollar exchange rate. In Rand terms cash costs increased
by 3 per cent to R48,189 per kilogram from R46,761 per kilogram in the
December quarter.
At Driefontein recent seismicity combined with the ongoing effects of the
previous quarter's seismic events, especially at the high grade 4 shaft east,
contributed to a reduction in gold output of 9,500 ounces to 331,000 ounces.
As a result of tight cost control the cash cost reduced marginally from
R45,893 per kilogram (US$ 188 per ounce) in the December quarter to R45,090
per kilogram (US$ 179 per ounce) in the current quarter.
At Kloof gold output for the quarter reduced to 285,000 ounces from 324,000
ounces in the December quarter. Aside from the impact of the December break
as mentioned above, Kloof's production profile is still being affected by the
seismic event on 22 September 2000. In addition, lower face grades are being
experienced at 3 shaft and 7 shaft. 7 shaft will continue to experience lower
grade over the next 3 to 4 months due to ledging in lower grade areas to make
higher grade areas available. 8 shaft (old Libanon) continues to downsize its
operations by reducing the mining of unprofitable ounces. Surface operations
contributed 86,000 tons of ore at 0.7 grams per ton and a further 240,000 tons
is planned, at a similar grade, for the June quarter. Underground yields were
maintained at 10.9 grams per ton for the quarter. Operating costs reduced by
R29 million to R458 million largely due to the downsizing of operations at 8
and 9 shafts. Cash costs increased from R47,783 per kilogram (US$ 196 per
ounce) in the previous quarter to R51,924 per kilogram (US$ 207 per ounce)
for the March quarter.
Oryx has now been integrated with and operates as a shaft of Beatrix as a
means of reducing overheads. To reflect this integration Oryx and Beatrix are
reported as a combined unit in these results. Comparative results have been
restated accordingly. Oryx will in future be referred to as Beatrix No. 4
shaft.
The combined operations of Beatrix and Oryx produced 161,000 ounces, 10,000
ounces below the previous quarter mainly due to 1 and 2 shafts reporting a
more normal quarter after their recent record highs and due to continued
mining inflexibility at 4 shaft associated with a lack of pay face. 76,000
tons of surface material treated over Christmas and New Year assisted in
reducing the impact of mine closure over this period contributing 1,500 ounces
at 0.6 grams per ton which contributed to reducing the overall combined
surface and underground yield from 6.0 grams per ton to 5.3 grams per ton
quarter on quarter.
In Ghana, the Tarkwa operation again performed exceptionally, producing gold
output of 115,000 ounces, 12,000 ounces more than last quarter, at a cash cost
of US$148 per ounce. This is higher than last quarter's US$134 per ounce due
to an increased stripping ratio and a lower grade resulting in a yield of 1.1
grams per ton compared to 1.4 grams per ton in the December quarter. The
Teberebie operation is progressing on plan and contributed 26,000 ounces
during the quarter.
OUTLOOK
The longer term outlook at St Helena indicates that this mine will not form
the basis for a successful and sustainable black empowerment transaction. It
has thus been decided to scale down mining with the ultimate aim of ceasing
operations. To this end the mine will commence extensive salvage operations
with the aim of mitigating closure costs. The Union has been informed of this
decision.
Metallurgical upgrades at Driefontein and Kloof are progressing well and have
already had a positive effect on recoveries and costs. Commissioning will be
finalised during the quarter. In addition, large volume SAG mills at
Driefontein have been purchased for the existing milling system, which will
further increase efficiencies and reduce milling costs.
Investigations into the treatment of waste rock and slimes are largely
complete. The outcome suggests that despite a considerable available reserve,
slimes retreatment represents a break even economic proposition at current
gold prices. By contrast the treatment of screened waste stockpiles offers
very attractive economics with cash production costs below $100 per ounce.
Steps are being taken to reconfigure the various treatment plants around the
Group to increase and optimise waste treatment.
As a result of surpassing a cumulative investment of US$5 million in the
Arctic Platinum project during the quarter a 30 per cent interest became
vested in the project. A further US$6 million investment will result in the
company owning 49 per cent of the project and an additional US$2 million will
increase this interest to 51 per cent. A scoping study has been completed
that recommends proceeding towards a bankable feasibility study by June 2002.
A major drilling program is underway with new resource results expected by
June 2001.
The Group recently announced its entry into Projeck AuTEK, a pioneering
initiative to pursue research and develop new product applications for gold
and gold alloys. We believe that there is substantial potential for gold to
replace existing products and to create new ones.
With the closing of the last hedge positions at Tarkwa the Group is now
completely unhedged and in a position to take advantage of changes in the gold
price, which we believe has upside potential particularly when viewed from the
perspective that a major portion of the industry cannot maintain reserves, nor
mine economically for a sustained period of time, at current gold price
levels.
GENERAL
The unaudited results for the quarter and the unaudited interim results for
the year to date have been prepared on the International Accounting Standards
basis. The detailed financial, operational and developmental results for the
March 2001 quarter are submitted in this report.
These consolidated quarterly and condensed interim financial statements are
prepared in accordance with IAS 34, Interim Financial Reporting.
INCOME STATEMENTS
International Accounting Standards Basis
SA RAND
(Figures are in millions unless otherwise stated)
Quarter Nine months to
March December March March March
2001 2000 2000 2001 2000
Revenue 1,881.8 1,986.8 1,793.4 5,798.8 5,261.0
Operating cost 1,462.0 1,468.0 1,416.1 4,432.1 4,279.2
Gold inventory change (36.9) 0.8 (13.7) (27.2) (35.6)
Operating profit 456.7 518.0 391.0 1,393.9 1,017.4
Amortisation and depreciation 152.1 159.2 158.2 467.6 490.4
Net operating profit 304.6 358.8 232.8 926.3 527.0
Other income 54.8 43.8 35.9 115.9 70.0
Business development (13.2) (13.6) (22.7) (40.8) (46.4)
Profit before tax and
exceptional items 346.2 389.0 246.0 1,001.4 550.6
Exceptional gain/(loss) 27.0 (8.4) (5.8) 10.6 (162.1)
Profit before taxation 373.2 380.6 240.2 1,012.0 388.5
Mining and income taxation 80.3 79.9 4.4 203.6 69.9
- Normal taxation 14.4 49.6 26.5 86.1 100.3
- Deferred taxation 65.9 30.3 (22.1) 117.5 (30.4)
Profit after taxation 292.9 300.7 235.8 808.4 318.6
Minority interest 32.2 24.2 3.9 70.7 (17.7)
Net earnings 260.7 276.5 231.9 737.7 336.3
Exceptional items:
Retrenchment costs (3.2) (7.3) (7.1) (18.5) (94.4)
Hedge buy-back income/(cost) 37.9 - - 37.9 (66.3)
Other (7.7) (1.1) 1.3 (8.8) (1.4)
Total exceptional items 27.0 (8.4) (5.8) 10.6 (162.1)
Taxation 2.8 2.7 2.5 7.4 37.4
Minorities' share of
exceptional items (10.9) - - (10.9) 24.8
Net exceptional items after
tax & minorities 18.9 (5.7) (3.3) 7.1 (99.9)
Earnings per share (cents)
after exceptional items 57 61 51 163 75
Earnings (Rm) before
exceptional items, net of
taxation and minorities 241.8 282.2 235.2 730.6 436.2
Earnings per share (cents)
before exceptional items,
net of taxation and minorities 53 62 52 161 97
Gold declared
- managed less capitalised kg 28,299 30,234 30,444 89,585 92,927
Gold price received R/kg 66,497 65,714 58,911 64,730 56,614
Cash costs R/kg 48,189 46,761 43,952 47,092 43,497
INCOME STATEMENTS
International Accounting Standards Basis
US DOLLARS
(Figures are in millions unless otherwise stated)
Quarter Nine months to
March December March March March
2001 2000 2000 2001 2000
Revenue 240.6 261.4 284.7 776.3 852.7
Operating cost 187.0 193.2 224.8 593.3 693.5
Gold inventory change (4.7) 0.1 (2.2) (3.6) (5.8)
Operating profit 58.3 68.1 62.1 186.6 165.0
Amortisation and depreciation 19.5 20.9 25.1 62.6 79.5
Net operating profit 38.8 47.2 37.0 124.0 85.5
Other income 7.0 5.8 5.7 15.5 11.3
Business development (1.7) (1.8) (3.6) (5.5) (7.5)
Profit before tax and
exceptional items 44.1 51.2 39.1 134.0 89.3
Exceptional gain/(loss) 3.5 (1.1) (0.9) 1.4 (26.3)
Profit before taxation 47.6 50.1 38.2 135.4 63.0
Mining and income taxation 10.2 10.5 0.7 27.2 11.4
- Normal taxation 1.8 6.5 4.2 11.5 16.3
- Deferred taxation 8.4 4.0 (3.5) 15.7 (4.9)
Profit after taxation 37.4 39.6 37.5 108.2 51.6
Minority interest 4.1 3.2 0.6 9.5 (2.9)
Net earnings 33.3 36.4 36.9 98.7 54.5
Exceptional items:
Retrenchment costs (0.4) (1.0) (1.1) (2.5) (15.3)
Hedge buy-back income/(cost) 5.1 - - 5.1 (10.7)
Other (1.2) (0.1) 0.2 (1.2) (0.3)
Total exceptional items 3.5 (1.1) (0.9) 1.4 (26.3)
Taxation 0.4 0.4 0.4 1.0 6.1
Minorities' share of
exceptional items (1.4) - - (1.5) 4.0
Net exceptional items after
tax & minorities 2.5 (0.7) (0.5) 0.9 (16.2)
Earnings per share (cents)
after exceptional items 7 8 8 22 12
Earnings ($m) before
exceptional items, net of
taxation & minorities 30.8 37.1 37.4 97.8 70.7
Earnings per share (U.S. cents)
before exceptional items,
net of taxation & minorities 7 8 8 22 16
S.A. Rand/U.S. Dollar
conversion rate 7.82 7.60 6.30 7.47 6.17
Gold declared - managed less
capitalised ozs (000) 910 972 979 2,880 2,988
Gold price received $/oz 264 269 291 270 285
Cash costs $/oz 192 191 217 196 219
BALANCE SHEETS
International Accounting Standards Basis
(Figures are in millions unless otherwise stated)
South African Rand United States Dollars
March June March June
2001 2000 2001 2000
Mining and mineral assets 12,872.1 12,326.8 1,603.0 1,820.8
Non-current assets 139.0 128.3 17.3 19.0
Investments 290.7 244.1 36.2 36.1
Current assets 960.7 1,079.7 119.6 159.5
- Cash and deposits 155.3 514.9 19.3 76.1
- Other current assets 805.4 564.8 100.3 83.4
Net assets 14,262.5 13,778.9 1,776.1 2,035.4
Shareholders' equity 8,713.3 8,214.4 1,085.1 1,213.4
Outside shareholders' interest 319.6 203.2 39.8 30.0
Deferred taxation 3,657.5 3,535.3 455.5 522.2
Long-term loans - 135.4 - 20.0
Environmental
rehabilitation provisions 432.8 319.5 53.9 47.2
Post-retirement
health care provisions 200.0 224.8 24.9 33.2
Current liabilities 939.3 1,146.3 116.9 169.4
- Other current liabilities 939.3 1,078.6 116.9 159.4
- Current portion of
long-term loans - 67.7 - 10.0
14,262.5 13,778.9 1,776.1 2,035.4
S.A. Rand/U.S. Dollar
conversion rate 8.03 6.77
CONDENSED STATEMENT OF CHANGES IN EQUITY
South African Rand United States Dollars
March March March March
2001 2000 2001 2000
Balance as at the
beginning of the financial year 8,214.4 7,417.7 1,213.4 1,240.3
Currency translation adjustment
and other 179.6 151.2 (166.6) (87.1)
Issue of share capital 59.3 142.7 3.5 21.8
Dividends (477.7) (90.7) (63.9) (14.7)
Net earnings 737.7 336.3 98.7 54.5
Balance as at the end of March 8,713.3 7,957.2 1,085.1 1,214.8
Where necessary prior year comparatives have been restated
to conform with changes in presentation.
CASH FLOW STATEMENTS
International Accounting Standards Basis
(Figures are in millions unless otherwise stated)
SA RAND Quarter Nine months to
March December March March
2001 2000 2001 2000
Cash flow
from operating activities 442.1 259.6 1,094.3 854.4
Profit before tax and
exceptional items 346.2 389.0 1,001.4 550.6
Exceptional gain/(loss) 27.0 (8.4) 10.6 (162.1)
Amortisation and depreciation 152.1 159.2 467.6 490.4
Change in working capital (91.6) (145.0) (271.0) 81.5
Taxation paid (7.9) (156.0) (169.7) (123.0)
Other non-cash items 16.3 20.8 55.4 17.0
Dividends paid (477.7) - (477.7) (225.2)
Cash utilised in
investing activities (277.6) (293.9) (792.0) (504.1)
Capital expenditure - net (251.2) (264.6) (730.8) (506.5)
(Purchase)/disposal of
investments - net (20.8) (24.5) (46.6) 2.4
Investments in trust funds and
medical payments (5.6) (4.8) (14.6) -
Cash flow from
financing activities (173.5) (1.0) (184.2) 19.7
Loan repayment (187.8) (18.9) (218.2) 19.7
Shares issued 14.3 17.9 34.0 -
Net cash inflow/(outflow) (486.7) (35.3) (359.6) 144.8
Cash at beginning of period 642.0 677.3 514.9 255.5
Cash at end of period 155.3 642.0 155.3 400.3
US DOLLARS Quarter Nine months to
March December March March
2001 2000 2001 2000
Cash flow
from operating activities 56.5 34.0 146.4 138.4
Profit before tax and
exceptional items 44.1 51.2 134.0 89.3
Exceptional gain/(loss) 3.5 (1.1) 1.4 (26.3)
Amortisation and depreciation 19.5 20.9 62.6 79.5
Change in working capital (11.7) (19.2) (36.3) 13.6
Taxation paid (1.0) (20.6) (22.7) (20.5)
Other non-cash items 2.1 2.8 7.4 2.8
Dividends paid (63.9) - (63.9) (37.5)
Cash utilised in
investing activities (35.5) (38.8) (106.0) (84.0)
Capital expenditure - net (32.1) (35.0) (97.8) (84.4)
(Purchase)/disposal of
investments - net (2.7) (3.2) (6.2) 0.4
Investments in trust funds and
medical payments (0.7) (0.6) (2.0) -
Cash flow from
financing activities (23.2) (0.1) (25.5) 3.3
Loan repayment (25.0) (2.5) (30.0) 3.3
Shares issued 1.8 2.4 4.5 -
Net cash inflow/(outflow) (66.1) (4.9) (49.0) 20.2
Translation adjustment 0.5 (3.7) (7.8) (1.5)
Cash at beginning of period 84.9 93.5 76.1 42.4
Cash at end of period 19.3 84.9 19.3 61.1
HEDGING
POLICY
* General corporate hedging unrelated to any specific project is not
undertaken.
* Hedges are established on a project specific basis where applicable, to
protect cash flows in times when significant capital projects are being
undertaken or where specific debt servicing requirements exist.
* In addition, hedges may also be implemented from time to time to safeguard
the viability of higher cost operations.
* Deviations from this policy may occur from time to time depending on
management's view of fundamental changes in the gold market.
POSITION
All hedge positions have been closed. The hedge positions which remained at
the close of the previous quarter - December 2000, being 160,000 ounces at
Tarkwa at a forward gold price of US$295 per ounce, were closed at a profit of
US$5.1 million (equivalent to R37.9 million).
OTHER INSTRUMENTS
Beatrix SA Rand Gold Call Options
2000/2001 September December March June Financial Year
Volume - oz - - - 46,678 46,678
Strike price - R/oz - - - 2,281 2,281
Strike price - US$/oz* - - - 284 284
2001/2002
Volume - oz 46,678 - - - 46,678
Strike price - R/oz 2,329 - - - 2,329
Strike price - US$/oz* 290 - - - 290
* Converted at an exchange rate of US$1= R8.03
Rand/Gold call options on 93,356 ounces at an average strike price of R2,305
per ounce, providing upside exposure.
OPERATING COSTS
(All figures are in Rand millions unless otherwise stated)
Drie- Free State Division
fontein Kloof St
Division Division Beatrix* Helena Tarkwa Total
Operating costs (1)
March 2001 500.9 458.1 257.2 79.1 166.7 1,462.0
December 2000 510.3 487.2 269.7 82.9 117.9 1,468.0
Financial year to date 1,522.7 1,456.1 804.0 247.7 401.6 4,432.1
Gold in process change
March 2001 0.0 0.0 0.0 0.0 (33.8) (33.8)
December 2000 0.0 0.0 0.0 0.0 (14.3) (14.3)
Financial year to date 0.0 0.0 0.0 0.0 (44.0) (44.0)
Less: Rehabilitation costs
March 2001 4.3 0.9 1.1 0.7 0.6 7.6
December 2000 2.0 0.9 0.6 0.7 0.6 4.8
Financial year to date 8.4 2.7 2.2 2.1 2.2 17.6
Production taxes
March 2001 3.0 3.3 1.3 0.2 0.0 7.8
December 2000 4.8 3.2 1.5 0.3 0.0 9.8
Financial year to date 10.5 9.8 4.1 0.9 0.0 25.3
General and administration
March 2001 32.4 17.2 7.1 1.2 6.0 63.9
December 2000 22.2 21.8 9.0 1.8 5.8 60.6
Financial year to date 83.3 62.7 26.6 5.4 17.0 195.0
Cash operating costs
March 2001 461.2 436.7 247.7 77.0 126.3 1,348.9
December 2000 481.3 461.3 258.6 80.1 97.2 1,378.5
Financial year to date 1,420.5 1,380.9 771.1 239.3 338.4 4,150.2
Plus: Production taxes
March 2001 3.0 3.3 1.3 0.2 0.0 7.8
December 2000 4.8 3.2 1.5 0.3 0.0 9.8
Financial year to date 10.5 9.8 4.1 0.9 0.0 25.3
Royalties
March 2001 0.0 0.0 0.0 0.0 7.0 7.0
December 2000 0.0 0.0 0.0 0.0 7.1 7.1
Financial year to date 0.0 0.0 0.0 0.0 20.4 20.4
CASH COSTS (2)
March 2001 464.2 440.0 249.0 77.2 133.3 1,363.7
December 2000 486.1 464.5 260.1 80.4 104.3 1,395.4
Financial year to date 1,431.0 1,390.7 775.2 240.2 358.8 4,195.9
Plus: Amortisation
March 2001 48.9 30.9 20.2 0.7 27.2 127.9
December 2000 48.9 40.0 21.0 1.1 24.6 135.6
Financial year to date 147.0 109.7 62.5 3.0 73.7 395.9
Rehabilitation
March 2001 4.3 0.9 1.1 0.7 0.6 7.6
December 2000 2.0 0.9 0.6 0.7 0.6 4.8
Financial year to date 8.4 2.7 2.2 2.1 2.2 17.6
TOTAL PRODUCTION COSTS (3)
March 2001 517.4 471.8 270.3 78.6 161.1 1,499.2
December 2000 537.0 505.4 281.7 82.2 129.5 1,535.8
Financial year to date 1,586.4 1,503.1 839.9 245.3 434.7 4,609.4
Gold produced
- thousand ounces **
March 2001 331.0 272.4 160.8 30.8 114.8 909.8
December 2000 340.5 312.5 170.9 32.8 102.6 959.4
Financial year to date 1,029.6 914.4 499.9 98.1 322.5 2,864.7
CASH COSTS - US$/oz
March 2001 179 207 198 320 148 192
December 2000 188 196 200 323 134 191
Financial year to date 186 204 208 328 149 196
TOTAL PRODUCTION COSTS
- US$/oz
March 2001 200 221 215 326 179 211
US$/oz December 2000 207 213 217 330 166 211
Financial year to date 206 220 225 335 180 215
DEFINITIONS
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) Cash costs - Operating costs less off-mine costs, including general and
administration costs, as detailed in the table above.
(3) Total production costs - Cash costs plus amortisation/depreciation and
rehabilitation provisions, as detailed in the table above.
** Gold produced excludes production at Kloof 4 shaft of 393 kilograms
(12,640 ounces) for the March 2001 quarter and 357 kilogram (11,480 ounces)
for the December 2000 quarter, which is capitalised.
+ Oryx has been integrated with Beatrix, these and future results will be
reported as one unit under Beatrix.
Exchange rates applied are US$1 = R7.82 and US$1 = R7.60 for the March 2001
and December 2000 quarters respectively.
OPERATING AND FINANCIAL RESULTS
Individual Mines
SOUTH AFRICAN RAND
Operating Results
Drie- Free State Division TOTAL
fontein Kloof St MINE
Division Division Beatrix* Helena Tarkwa
OPERATIONS
Ore milled / treated*
(000 tons)
March 2001 1,640 894 952 247 3,327 7,060
December 2000 1,581 931 880 214 2,313 5,919
Financial year to date 4,832 2,802 2,720 705 7,905 18,964
Yield (grams per ton)
March 2001 6.3 9.9 5.3 3.9 1.1 4.1
December 2000 6.7 10.8 6.0 4.8 1.4 5.1
Financial year to date 6.6 10.5 5.7 4.3 1.3 4.8
Gold produced (kilograms)
March 2001 10,295 8,867 5,000 959 3,571 28,692
December 2000 10,592 10,078 5,317 1,019 3,192 30,198
Financial year to date 32,024 29,435 15,550 3,050 10,032 90,091
Gold declared (kilograms)
March 2001 10,295 8,867 5,000 959 3,571 28,692
December 2000 10,592 10,078 5,317 1,019 3,585 30,591
Financial year to date 32,024 29,435 15,550 3,050 10,516 90,575
Gold price received
(rands per kilogram)
March 2001 66,421 66,533 66,380 65,798 66,984 66,497
December 2000 65,710 65,703 65,507 65,849 66,025 65,714
Financial year to date 64,667 64,686 64,617 64,492 65,272 64,730
Cash costs
(rands per kilogram)
March 2001 45,090 51,924 49,800 80,501 37,328 48,189
December 2000 45,893 47,783 48,919 78,901 32,675 46,761
Financial year to date 44,685 48,891 49,852 78,754 35,766 47,092
Cash costs
(US dollar per ounce)
March 2001 179 207 198 320 148 192
December 2000 188 196 200 323 134 191
Financial year to date 186 204 208 328 149 196
Total production costs
(rands per kilogram)
March 2001 50,257 55,676 54,060 81,960 45,113 52,977
December 2000 50,699 51,991 52,981 80,667 40,570 51,466
Financial year to date 49,538 52,842 54,013 80,426 43,331 51,732
Operating costs
(rands per ton)
March 2001 305 536 270 320 50 208
December 2000 323 543 306 387 51 249
Financial year to date 315 539 296 351 51 235
Financial Results (Rand Million) Unaudited
Revenue
March 2001 683.8 563.8 331.9 63.1 239.2 1,881.8
December 2000 696.0 638.7 348.3 67.1 236.7 1,986.8
Financial year to date 2,070.9 1,840.0 1,004.8 196.7 686.4 5,798.8
Operating costs
March 2001 500.9 458.1 257.2 79.1 166.7 1,462.0
December 2000 510.3 487.2 269.7 82.9 117.9 1,468.0
Financial year to date 1,522.7 1,456.1 804.0 247.7 401.6 4,432.1
Gold inventory change
March 2001 0.0 0.0 0.0 0.0 (36.9) (36.9)
December 2000 0.0 0.0 0.0 0.0 0.8 0.8
Financial year to date 0.0 0.0 0.0 0.0 (27.2) (27.2)
Operating profit
March 2001 182.9 105.7 74.7 (16.0) 109.4 456.7
December 2000 185.7 151.5 78.6 (15.8) 118.0 518.0
Financial year to date 548.2 383.9 200.8 (51.0) 312.0 1,393.9
Amortilisation of
mining assets **
March 2001 48.9 30.9 20.2 0.7 27.2 127.9
December 2000 48.9 40.0 21.0 1.1 24.6 135.6
Financial year to date 147.0 109.7 62.5 3.0 73.7 395.9
Net operating profit
March 2001 134.0 74.8 54.5 (16.7) 82.2 328.8
December 2000 136.8 111.5 57.6 (16.9) 93.4 382.4
Financial year to date 401.2 274.2 138.3 (54.0) 238.3 998.0
Other income
March 2001 12.2 6.1 11.1 0.9 (1.7) 28.6
December 2000 3.8 13.2 12.0 0.2 (2.3) 26.9
Financial year to date 21.0 24.4 26.3 1.6 (10.6) 62.7
Profit before taxation
March 2001 146.2 80.9 65.6 (15.8) 80.5 357.4
December 2000 140.6 124.7 69.6 (16.7) 91.1 409.3
Financial year to date 422.2 298.6 164.6 (52.4) 227.7 1,060.7
Mining and income taxation
March 2001 42.8 1.1 36.7 0.0 7.0 87.6
December 2000 36.5 18.8 25.2 0.0 7.2 87.7
Financial year to date 100.9 36.0 69.7 0.0 20.5 227.1
- Normal taxation
March 2001 15.4 (9.8) 0.0 0.0 7.0 12.6
December 2000 21.8 19.2 0.0 0.0 7.2 48.2
Financial year to date 50.2 11.4 0.0 0.0 20.5 82.1
- Deferred taxation
March 2001 27.4 10.9 36.7 0.0 0.0 75.0
December 2000 14.7 (0.4) 25.2 0.0 0.0 39.5
Financial year to date 50.7 24.6 69.7 0.0 0.0 145.0
Earnings before
exceptional items
March 2001 103.4 79.8 28.9 (15.8) 73.5 269.8
December 2000 104.1 105.9 44.4 (16.7) 83.9 321.6
Financial year to date 321.3 262.6 94.9 (52.4) 207.2 833.6
Exceptional items
March 2001 (8.0) (2.2) (0.9) 0.0 38.1 27.0
December 2000 (0.6) (6.7) (0.9) (0.2) 0.0 (8.4)
Financial year to date (12.2) (12.1) (2.3) (0.2) 37.6 10.8
Net earnings
March 2001 95.4 77.6 28.0 (15.8) 111.6 296.8
December 2000 103.5 99.2 43.5 (16.9) 83.9 313.2
Financial year to date 309.1 250.5 92.6 (52.6) 244.8 844.4
Capital expenditure (Rand million)
March 2001 118.8 86.4 34.1 0.3 98.1 337.7
December 2000 109.1 77.0 43.9 2.0 30.7 262.7
Financial year to date 290.1 248.9 99.9 3.7 171.6 814.2
Planned for next six
months to September 2001 244.4 178.0 120.9 1.7 52.7 597.7
**Excludes the fair value adjustment from the merger of Driefontein and Gold
Fields Limited.
* Ore milled at Driefontein includes 752,000 surface tons at 2.0 grams per ton
(December 592,000 tons at 2.0 grams per ton) and underground operations
yielding 9.9 grams per ton from 888,000 tons (December 989,000 tons at 9.5
grams per ton). Other surface operations were as follows: Kloof - 86,000
tons at 0.7 g/t, Beatrix - 76,000 tons at 0.6 g/t and St Helena - 35,000 tons
at 1.2 g/t.
+ Oryx has been integrated with Beatrix, these and future results will be
reported as one unit under Beatrix.
OPERATING AND FINANCIAL RESULTS
Individual Mines
US DOLLAR CONVERSION
Drie- Free State Division TOTAL
fontein Kloof St MINE
Division Division Beatrix* Helena Tarkwa OPERATIONS
Ore milled / treated*
(000 tons)
March 2001 1,640 894 952 247 3,327 7,060
December 2000 1,581 931 880 214 2,313 5,919
Financial year to date 4,832 2,802 2,720 705 7,905 18,964
Yield
(ounces per ton)
March 2001 0.202 0.319 0.169 0.125 0.035 0.131
December 2000 0.215 0.348 0.194 0.153 0.044 0.164
Financial year to date 0.213 0.338 0.184 0.139 0.041 0.153
Gold produced
(000 ounces)
March 2001 331.0 285.1 160.8 30.8 114.8 922.5
December 2000 340.5 324.0 170.9 32.8 102.6 970.9
Financial year to date 1,029.6 946.4 499.9 98.1 322.5 2,896.5
Gold declared
(000 ounces)
March 2001 331.0 285.1 160.8 30.8 114.8 922.5
December 2000 340.5 324.0 170.9 32.8 115.3 983.5
Financial year to date 1,029.6 946.4 499.9 98.1 338.1 2,912.1
Gold price received
(US dollar per ounce)
March 2001 264 265 264 262 266 264
December 2000 269 269 268 269 270 269
Financial year to date 269 269 269 269 272 270
Cash costs
(US dollar per ounce)
March 2001 179 207 198 320 148 192
December 2000 188 196 200 323 134 191
Financial year to date 186 204 208 328 149 196
Total production costs
(US dollar per ounce)
March 2001 200 221 215 326 179 211
December 2000 207 213 217 330 166 211
Financial year to date 206 220 225 335 180 215
Operating costs
(US dollar per ton)
March 2001 39 69 35 41 6 27
December 2000 42 71 40 51 7 33
Financial year to date 42 72 40 47 7 31
Financial Results (US$ Million) Unaudited
Revenue
March 2001 87.4 72.1 42.4 8.1 30.6 240.6
December 2000 91.6 84.0 45.8 8.8 31.1 261.4
Financial year to date 277.2 246.3 134.5 26.3 91.9 776.3
Operating costs
March 2001 64.1 58.6 32.9 10.1 21.3 187.0
December 2000 67.1 64.1 35.5 10.9 15.5 193.2
Financial year to date 203.8 194.9 107.6 33.2 53.8 593.3
Gold inventory change
March 2001 0.0 0.0 0.0 0.0 (4.7) (4.7)
December 2000 0.0 0.0 0.0 0.0 0.1 0.1
Financial year to date 0.0 0.0 0.0 0.0 (3.6) (3.6)
Operating profit
March 2001 23.4 13.5 9.6 (2.0) 14.0 58.3
December 2000 24.4 19.9 10.3 (2.1) 15.5 68.1
Financial year to date 73.4 51.4 26.9 (6.8) 41.8 186.6
Amortilisation of
mining assets **
March 2001 6.3 4.0 2.6 0.1 3.5 16.4
December 2000 6.4 5.3 2.8 0.1 3.2 17.8
Financial year to date 19.7 14.7 8.4 0.4 9.9 53.0
Net operating profit
March 2001 17.1 9.6 7.0 (2.1) 10.5 42.0
December 2000 18.0 14.7 7.6 (2.2) 12.3 50.3
Financial year to date 53.7 36.7 18.5 (7.2) 31.9 133.6
Other income
March 2001 1.6 0.8 1.4 0.1 (0.2) 3.7
December 2000 0.5 1.7 1.6 0.0 (0.3) 3.5
Financial year to date 2.8 3.3 3.5 0.2 (1.4) 8.4
Profit before taxation
March 2001 18.7 10.3 8.4 (2.0) 10.3 45.7
December 2000 18.5 16.4 9.2 (2.2) 12.0 53.9
Financial year to date 56.5 40.0 22.0 (7.0) 30.5 142.0
Mining and income taxation
March 2001 5.5 0.1 4.7 0.0 0.9 11.2
December 2000 4.8 2.5 3.3 0.0 0.9 11.5
Financial year to date 13.5 4.8 9.3 0.0 2.7 30.4
- Normal taxation
March 2001 2.0 (1.3) 0.0 0.0 0.9 1.6
December 2000 2.9 2.5 0.0 0.0 0.9 6.3
Financial year to date 6.7 1.5 0.0 0.0 2.7 11.0
- Deferred taxation
March 2001 3.5 1.4 4.7 0.0 0.0 9.6
December 2000 1.9 (0.1) 3.3 0.0 0.0 5.2
Financial year to date 6.8 3.3 9.3 0.0 0.0 19.4
Earnings before
exceptional items
March 2001 13.2 10.2 3.7 (2.0) 9.4 34.5
December 2000 13.7 13.9 5.8 (2.2) 11.0 42.3
Financial year to date 43.0 35.2 12.7 (7.0) 27.7 111.6
Exceptional items
March 2001 (1.0) (0.3) (0.1) 0.0 4.9 3.5
December 2000 (0.1) (0.9) (0.1) (0.0) 0.0 (1.1)
Financial year to date (1.6) (1.6) (0.3) (0.0) 5.0 1.4
Net earnings
March 2001 12.2 9.9 3.6 (2.0) 14.3 38.0
December 2000 13.6 13.1 5.7 (2.2) 11.0 41.2
Financial year to date 41.4 33.5 12.4 (7.0) 32.8 113.0
Capital Expenditure (US$ Million)
March 2001 15.2 11.0 4.4 0.0 12.5 43.2
December 2000 14.4 10.1 5.8 0.3 4.0 34.6
Financial year to date 38.8 33.3 13.4 0.5 23.0 109.0
Planned for next 6
months to September 2001 30.4 22.2 15.1 0.2 6.6 74.4
Exchange rates applied are US$1 = R7.60 and US$1 = R7.82 for the December 2000
and March 2001 quarters respectively. Figures may not add as they are
converted independently.
** Excludes the fair value adjustment from the merger of Driefontein and Gold
Fields Limited.
* Ore milled at Driefontein includes 752,000 surface tons at 2.0 grams per ton
(December 592,000 tons at 2.0 grams per ton) and underground operations
yielding 9.9 grams per ton from 888,000 tons ( December 989,000 tons at 9.5
grams per ton). Other surface operations were as follows: Kloof - 86,000 tons
at 0.7 g/t, Beatrix - 76,000 tons at 0.6 g/t and St Helena - 35,000 tons at
1.2 g/t.
+ Oryx has been integrated with Beatrix, these and future results will be
reported as one unit under Beatrix.
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 meters
March 2001 December 2000 Nine months to
quarter quarter end of March 2001
Driefontein
Carbon Carbon Carbon
Reef Leader Main VCR Leader Main VCR Leader Main VCR
Advanced (m) 7,173 440 2,431 7,644 89 2,085 21,458 708 6,879
Advanced on reef (m) 1,215 193 669 1,003 42 322 3,774 258 1,265
Sampled (m) 1,092 72 1,656 1,179 42 333 3,630 147 2,187
Channel width (cm) 94 113 85 91 104 82 81 103 82
Average value - (g/t) 27 8 17 26 2 29 30 6 20
- (cm.g/t) 2,511 934 1,438 2,375 232 2,380 2,462 581 1,676
March 2001 December 2000 Nine months to
quarter quarter end of March 2001
Kloof
Reef Kloof Main VCR Kloof Main VCR Kloof Main VCR
Advanced (m) 399 1,271 9,804 389 2,071 11,320 1,287 5,283
32,787
Advanced on reef (m) 192 383 1,471 187 513 1,713 549 1,342 4,931
Sampled (m) 183 249 1,257 177 474 1,082 513 1,029 3,648
Channel width (cm) 95 64 72 123 50 73 123 57 78
Average value - (g/t) 4 18 26 5 12 28 11 13 26
- (cm.g/t) 348 1,182 1,875 604 592 2,072 1,324 742 2,029
March 2001 December 2000 Nine months to
quarter quarter end of March 2001
Beatrix* Kalkoen- Kalkoen- Kalkoen-
Reef Beatrix krans Beatrix krans Beatrix krans
Advanced (m) 5,685 3,361 6,208 4,062 18,381 12,367
Advanced on reef (m) 1,691 523 1,781 499 4,997 1,967
Sampled (m) 1,662 523 1,584 499 4,587 1,967
Channel width (cm) 67 118 73 106 76 103
Average value - (g/t) 14 19 11 9 12 13
- (cm.g/t) 950 2,278 803 980 925 1,386
March 2001 December 2000 Nine months to
quarter quarter end of March 2001
St Helena
Reef Basal Leader Basal Leader Basal Leader
Advanced (m) 1,523 125 1,576 270 4,579 720
Advanced on reef (m) 466 111 481 151 1,162 402
Sampled (m) 387 81 528 126 1,125 345
Channel width (cm) 69 151 72 86 74 104
Average value - (g/t) 9 4 10 7 11 4
- (cm.g/t) 647 657 728 638 794 462
* Oryx has been integrated with Beatrix, these and future results will be
reported as one unit under Beatrix.
FORWARD LOOKING STATEMENTS
This report contains forward-looking statements. Such forward-looking
statements include, without limitations, estimates of future:
1) earnings,
2) gold production,
3) production costs,
4) cash flows,
5) deferred taxation, and
6) rehabilitation costs.
Where the company expresses an expectation or belief as to future events or
results, such expectation or belief is expressed in good faith and believed to
have a reasonable basis.
However, such forward-looking statements are subject to risks, uncertainties
and other factors that could cause actual results to differ materially from
future results expressed or implied by such forward looking statements. Such
risks include, but are not limited to, gold price volatility, increased
production costs and variances in ore grade or recovery rates from those
assumed in mining plans.
CONTACT DETAILS
Corporate Office
Gold Fields Limited
24 St Andrews Road
Parktown
Johannesburg
2193
Postnet Suite 252
Private Bag x 30500
Houghton 2041
Tel: +27 11 644-2400
Fax: +27 11 484-0626
Directors
C M T Thompson + (Chairman)
A J Wright (Deputy Chairman)
I D Cockerill * (Managing Director)
NJ Holland *
J M McMahon *
G R Parker **
P J Ryan
TMG Sexwale
B R van Rooyen
CI von Christierson
+ Canadian * British ** USA
London Office
St James's Corporate Services Limited
6 St James's Place
London SW1A 1 NP
Tel: +944 207 499-3916
Fax: +944 207 491-1989
Transfer Offices
Johannesburg
Computershare Services Limited
Edura 40 Commissioner Street
Johannesburg
P O Box 61051, Marshalltown, 2107
Tel: 27 11 370-7700
Fax: 27 11 836-0792
Company Secretary
VD MacDonald
24 St Andrews Road
Parktown
Johannesburg
2193
Postnet Suite 252
Private Bag x 30500
Houghton 2041
Tel: +27 11 644-2406
Fax: +27 11 484-0626
London
Capita IRG
Bourne House
34 Beckenham Road
Beckenham Kent BR3 4TU
Tel: +944 208 658-3430
Fax: +944 208 639-2000
American Depositary Receipt Banker
Bank of New York
101 Barclay Street
New York N.Y. 10286
USA
Tel: +91 212 815-5133
Fax: +91 212 571-3050
Investor Relations
Europe & South Africa
Willie Jacobsz
Tel: +27 11 644-2460
Fax: +27 11 484-0639
E-mail: investors@goldfields.co.za
United Kingdom
46 Berkley Street
London
W1X 6AA
Tel: +944 207 322-6341
Fax: +944 207 322-6028
North America
Cheryl A. Martin
Tel: +91 303 796-8683
Fax: +91 303 796-8293
E-mail: camartin@gfexpl.com
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