Gold Fields Limited: First Quarter Net Earnings of R421 Million (89
cents per share) or US$57 Million (US$0.12 per share) JOHANNESBURG,
South Africa, Oct. 30 /PRNewswire-FirstCall/ -- Gold Fields Limited
(NYSE & JSE: GFI) today announced September 2003 quarter net
earnings of R421 million (89 cents per share) compared to net
earnings of R789 million (167 cents per share) in the June 2003
quarter and R542 million (115 cents per share) for the
corresponding quarter in 2002. In US dollar terms first quarter net
earnings were $57 million (US$0.12 per share) compared with $98
million (US$0.21 per share) in the June 2003 quarter and $52
million (US$0.11 per share) for the corresponding period in 2002.
First quarter highlights included: -- Attributable gold production
of 1.038 million ounces, similar to the previous quarter. -- Total
cash costs up 6.6 per cent in rand terms to R67,566 per kilogram
and up 10.6 per cent in dollar terms to US$282 per ounce. --
Operating profit of R570 million (US$77 million), 21 per cent down
from the previous quarter as a result of wage increases and the
strong rand. -- Earnings enhanced by R240 million (US$32 million)
from the sale of mineral rights and associated assets at
Driefontein. -- Mineral resources increased by 9.3 million ounces
to 195.3 million ounces and mineral reserves by 3.0 million ounces
to 81.5 million ounces. -- 12 million ounce Arctic Platinum Project
now 100 per cent owned by Gold Fields after the purchase of 49 per
cent from Outokumpu for US$31 million. Ian Cockerill, Chief
Executive Officer of Gold Fields said: "Results for the first
quarter were negatively impacted by above inflation annual wage
increases, lower underground yields at Beatrix, other normal
inflationary increases and a marginally lower rand gold price
received, associated with a stronger rand. Operating margins and
earnings were consequently lower than the previous quarter." "To
address these pressures, the company has initiated various changes
including a reduction in marginal tonnage which was deliberately
increased in times of higher prices. Capital expenditure at the
South African operations has already been reduced and is subject to
ongoing scrutiny. In addition, paylimits are in the process of
being reviewed since it is likely that the rand will remain at
current levels or stronger for longer than originally anticipated.
It will take some time for the benefits of these changes to be
realised." STOCK DATA Number of shares in issue - at 30 September
2003 473,650,481 - average for the quarter 472,885,574 Free Float
100% ADR Ratio 1:1 Bloomberg / Reuters GFISJ / GFLJ.J JSE
SECURITIES EXCHANGESOUTH AFRICA- (GFI) Range - Quarter ZAR82.10 -
ZAR110.40 Average Volume - Quarter 1,418,814 shares / day NYSE -
(GFI) Range - Quarter US$10.52 - US$15.28 Average Volume - Quarter
1,493,513 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: North
America Cheryl A. Martin Tel: +1 303 796-8683 Fax: +1 303 796-8293
E-mail: http://www.goldfields.co.za/ http://www.gold-fields.com/ SA
Rand Salient features US Dollars Quarter Quarter September June
September September June September 2002 2003 2003 2003 2003 2002
35,163 32,380 32,299 kg Gold oz(000) 1,038 1,041 1,130 produced*
61,222 63,369 67,566 R/kg Total cash $/oz 282 255 183 costs 10,831
10,925 11,497 000 Tons milled 000 11,497 10,925 10,831 104,542
86,751 86,184 R/kg Revenue $/oz 360 349 313 222 204 204 R/ton
Operating $/ton 27 26 21 costs 1,578 717 570 Rm Operating $m 77 100
152 profit 542 789 421 Rm $m 57 98 52 115 167 89 SA Net earnings US
12 21 11 c.p.s. c.p.s. 542 494 164 Rm $m 22 64 52 115 104 35 SA
Headline US 5 14 11 c.p.s. earnings c.p.s. 735 226 136 Rm Net
earnings $m 18 34 71 excluding gains and losses on financial
instruments and foreign 156 48 29 SA debt net of US 4 8 15 c.p.s.
cash and c.p.s. exceptional items *Attributable - All companies
wholly owned except for Ghana (71.1%). Overview As indicated last
quarter, earnings at R421 million (US$57 million) are significantly
lower this quarter as a result of above inflation local wage
increases, the stronger rand and a reduction in gains on financial
instruments and foreign debt and profits earned on the sale of
investments. This is despite the inclusion this quarter of a profit
on the sale of certain mineral rights and associated assets to
AngloGold. The pre-tax profit on this sale amounted to R187 million
and after accounting for the deferred tax release, the total impact
on earnings was R240 million (US$32 million). The Group's
attributable gold production for the September quarter at 1.038
million ounces is in line with the June quarter. Total cash costs
in the September quarter increased 6.6 per cent from R63,369 per
kilogram to R67,566 per kilogram and in US dollar terms increased
10.6 per cent from US$255 per ounce to US$282 per ounce due to the
rand strengthening 4 per cent from R7.74 to R7.44 to the US dollar.
Health and safety During the quarter the safety performance at the
South African operations slipped back slightly from the five-year
record high standards achieved during the 2003 financial year. The
lost day injury frequency rate regressed from 13.9 to 15.9, the
serious injury frequency rate from 6.6 to 7.2 and the fatal injury
frequency rate from 0.23 to 0.31. During the quarter the Full
Compliance Safety Campaign was relaunched at all operations to
consolidate the gains made in safety over the past five years.
Indications are that the campaign is meeting the objective of
re-energising safety vigilance at all levels in the organisation.
Financial Review Quarter ended 30 September 2003 compared to
quarter ended 30 June 2003 REVENUE Revenue is marginally lower than
the previous quarter due to a lower rand gold price as a
consequence of a 4 per cent strengthening of the average rand/US
dollar exchange rate from 7.74 in the June 2003 quarter to 7.44
this quarter. This was partly offset by a higher US dollar gold
price of US$360 per ounce, compared to US$349 per ounce in the June
quarter. The resultant rand gold price of R86,184 per kilogram is
thus 1 per cent lower than the R86,751 per kilogram achieved last
quarter. The lower gold price was partly offset by the higher gold
sales at 34,257 kilograms (1,101,400 ounces) as compared to 34,244
kilograms (1,101,000 ounces) last quarter, which resulted in
revenue of R2,952 million (US$397 million) compared to R2,971
million (US$383 million) last quarter. OPERATING COSTS Operating
costs at R2,342 million (US$315 million) for the quarter were 5 per
cent higher than the previous quarter's costs of R2,224 million
(US$281 million). At the South African operations costs increased 7
per cent compared to the previous quarter. This was mainly due to
the wage increases effective from 1 July and the full expensing of
all operating costs at Kloof 4 shaft, as this is now regarded as a
fully operating shaft. The latter item increased working costs by
R24 million. The wage agreement at the South African operations
increased costs at these operations by approximately 4 per cent. At
the international operations costs were flat in rand terms at R656
million (US$88 million) for the quarter. On a Group basis, total
cash costs increased from R63,369 per kilogram in the June quarter
to R67,566 per kilogram this quarter. The net effect of the
marginally lower revenue and higher costs, together with a gold in
process charge resulting from a net release of inventory at the
international operations, was a decrease in operating profit from
R717 million (US$100 million) in the June quarter to R570 million
(US$77 million) this quarter. OPERATING MARGIN The operating margin
for the Group declined from 24 per cent to 19 per cent in the
current quarter. This is due to a decline in margins at the South
African operations from 19 per cent in the previous quarter to 11
per cent in the current quarter. The decline at the local
operations resulted from slightly lower production, the wage
increases and the lower rand gold price. This situation is clearly
unsustainable since insufficient funds are being generated to fund
capital expenditure and to set aside funds for dividends, as well
as meeting the Mining Charter obligations. Accordingly, paylimits
are being reviewed and urgent efforts are being expended on
investigating ways in which to increase gold production in the
short term and productivity in the medium to longer term.
AMORTISATION Amortisation was slightly below the previous quarter
at R299 million (US$40 million). FINANCIAL INSTRUMENTS AND DEBT The
Australian dollar once again strengthened against the US dollar,
from 66.22 US cents at the end of the June quarter to 68.14 US
cents at the end of the current quarter. The stronger Australian
dollar resulted in a gain on foreign debt net of cash of R1 million
(US$0.2 million) as compared to a gain of R66 million (US$7
million) achieved in the June 2003 quarter. Outstanding debt at the
Australian operations reduced from US$29 million at the end of the
June quarter to US$19 million by the end of September. As
previously reported, the Australian operations established currency
financial instruments to protect the cash flows against a possible
strengthening of the Australian dollar against the United States
dollar. At the quarter end, US$300 million was outstanding under
these instruments. Gains on these financial instruments amounted to
R68 million (US$9 million) in the current quarter compared to R320
million (US$36 million) in the previous quarter. At the end of the
September quarter, the marked to market value of these US
dollar/Australian dollar financial instruments was a positive R576
million (US$80 million). The gain on the above financial
instruments was partially offset by an unrealised loss of R32
million (US$4 million) on the SA rand/US dollar forward cover of
US$40 million. During the quarter US$4 million was purchased in
addition to the US$36 million purchased in the June quarter. In the
June quarter the unrealised loss amounted to R9 million (US$1
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. The weighted average forward
rate in respect of the forward cover is R8.68 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 R41
million (US$6 million negative). Details of the financial
instruments are provided on page 11 of this report. EXPLORATION AND
OTHER Exploration decreased, from R100 million (US$12 million) in
the June quarter to R55 million (US$7 million) in the September
quarter. The June quarter included a write-off of R43 million (US$5
million) incurred on exploration "farm-in" projects in which an
ownership interest had not vested. EXCEPTIONAL ITEMS Profit before
taxation and exceptional items was R287 million (US$39 million)
compared to R697 million (US$93 million) posted in the June 2003
quarter. Exceptional items include the sale of certain Driefontein
mineral rights and associated assets to AngloGold for a profit of
R187 million, the sale of 567,200 shares in Chesapeake Gold
Corporation (61 per cent of our holding), the remaining 88,128
shares in Glamis Gold Limited and 313,500 (13 per cent of our
holding) held in Orezone Resources Inc. These investment sales
generated profits of R16 million (US$2 million). This, together
with sundry asset sales, resulted in an exceptional gain of R205
million (US$28 million) compared to R272 million (US$31 million) in
the June quarter. The exceptional gain in the June quarter related
mainly to the sale of investments. The sale of the Beta Hunt
mineral rights in Australia, sold at cost, boosted cash flows by
R56 million and will reduce life of mine amortisation charges at
St. Ives by some A$13 million. TAXATION Taxation at R37 million
(US$5 million) is 75 per cent below the previous quarter as a
result of reduced operating profit. A deferred tax credit of R11
million arose due to a R53 million (US$7 million) deferred tax
release resulting from the sale of certain Driefontein mineral
rights and associated assets to AngloGold. EARNINGS Net earnings,
after accounting for minority interests, were thus R421 million
(US$57 million) or 89 cents per share (US$0.12 per share), compared
to R789 million (US$98 million) or 167 cents per share (US$0.21 per
share) in the previous quarter. Headline earnings i.e. net earnings
less the net after tax effect of asset sales, amounted to R164
million (US$22 million) compared to R494 million (US$64 million)
last quarter. The main reason for this decrease was the lower gains
on financial instruments and foreign debt, which decreased some
R340 million (US$37 million) quarter on quarter. Headline earnings
per share decreased from 104 cents (US$0.14) to 35 cents (US$0.05)
over the same period. Earnings, excluding exceptional items as well
as the net gains on financial instruments and foreign debt after
taxation, amounted to R136 million (US$18 million) or 29 cents per
share (US$0.04 per share) as compared to R226 million (US$34
million) or 48 cents per share (US$0.08 per share) achieved last
quarter. CASH FLOW Operating cash flow for the quarter was R32
million (US$4 million), compared to operating cash flow in the June
quarter of R577 million (US$95 million). The decrease is mainly due
to the lower operating profit as well as taxation payments of R303
million (US$41 million) relating to prior periods. During the
quarter the final dividend of 100 S.A. cents per share for fiscal
2003 was paid amounting to R472 million (US$63 million). Capital
expenditure was R553 million (US$74 million) as compared to R709
million (US$87 million) in the June 2003 quarter. The decrease is
due to a conscious effort to defer lower priority capital at the
South African operations given the current rand gold price. R289
million (US$40 million) was expended at the South African
operations. A significant portion of this expenditure was directed
at the major projects with R48 million at the 1E and 5E shafts at
Driefontein, R29 million on the new mill installation at
Driefontein, R47 million at Kloof 4 shaft and R44 million at
Beatrix 3 shaft. Major projects are still forecast to be in line
with approved votes. The Australian operations incurred capital
expenditure of R159 million (A$32 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 R88 million (US$12 million), the
majority at Tarkwa on the mill project. Net cash outflow for the
quarter was R1,269 million (US$171 million) after taking account of
the above as well as external loan repayments of R91 million (US$12
million). The cash balance at the end of the September 2003 quarter
was a deficit of R279 million (US$39 million) as compared to R1,041
million (US$134 million) at the end of the June 2003 quarter. Debt
at the end of September was R211 million (US$29 million) as
compared to R324 million (US$42 million) at the end of June 2003.
Quarter ended 30 September 2003 compared to quarter ended 30
September 2002 Attributable gold production decreased to 1,038,000
ounces in the September 2003 quarter compared to 1,130,000 ounces
in the September 2002 quarter. The decrease in production was due
to the sale of St Helena in fiscal 2003 and the lower grades
encountered at the South African operations. This was partly offset
by excellent results achieved at Agnew, where production year on
year is up 38 per cent from 33,200 ounces to 45,900 ounces. Revenue
decreased 26 per cent in rand terms (increased 4 per cent in US
dollar terms) from R3,964 million (US$382 million) to R2,952
million (US$397 million). This was due to a reduction in the rand
gold price achieved from R104,542 per kilogram (US$313 per ounce)
in the September 2002 quarter to R86,184 per kilogram (US$360 per
ounce) in the September 2003 quarter and the sale of St Helena,
which generated revenue of R111 million (US$11 million) in the
September 2002 quarter. Operating costs were 3 per cent lower at
R2,342 million (US$315 million) compared to R2,402 million (US$231
million) in the September 2002 quarter. Operating cost increases at
the South African operations of R168 million (US$80 million) were
offset by the impact of translating costs at the international
operations into South African rand at a stronger R/US dollar
exchange rate than the corresponding quarter in the previous year.
The average exchange rate strengthened 28 per cent from R10.38 to
the dollar in the September 2002 quarter to R7.44 in the current
quarter. Earnings decreased from R542 million (US$52 million) in
the September 2002 quarter to R421 million (US$57 million) in the
current quarter. Operational Review Group overview Attributable
gold production for the September 2003 quarter was virtually
unchanged at 1,038,000 ounces when compared to the June 2003
quarter, of which approximately one third is attributable to the
international operations. The international operations contributed
R217 million (US$29 million) of total net operating profit compared
to R205 million (US$27 million) last quarter. Production from the
Australian operations decreased 2 per cent. This was despite an
increase in tons throughput at St Ives, as the mine increased focus
on the low grade toll milling campaign to boost cash flows, and
underground yields were markedly lower due to this quarter's mining
mix. This is in line with plan. Net operating profit from the
Australian operations decreased 38 per cent to R24 million (US$3
million) for the quarter. Ghana showed an increase in production of
5 per cent due to an increase in tons treated. Ghana contributed
R193 million (US$26 million), a 16 per cent increase on the
previous quarter's net operating profit. At the South African
operations production was virtually unchanged at 711,000 ounces. A
decrease of 7 per cent in production at Beatrix due to lower grades
was offset by small increases achieved at the larger Driefontein
and Kloof operations. Net operating profit at the South African
operations decreased to R78 million (US$11 million) mainly as a
consequence of the above inflation wage increases and the treatment
of 4 sub-vertical shaft at Kloof as a full operating shaft and
increased tonnage. Ore milled increased from 10.93 million tons to
11.50 million tons due to an increase in surface tons, mainly at St
Ives and Tarkwa as well as the toll milling campaign at Beatrix.
This resulted in a decrease in overall yield to 3.0 grams per ton,
as compared to 3.1 grams per ton achieved in the June 2003 quarter.
Total cash costs in rand terms increased to R67,566 per kilogram
from R63,369 per kilogram achieved last quarter as a result of the
cost increases at the South African operations referred to above.
In US dollar terms, total cash costs increased from US$255 per
ounce to US$282 per ounce mainly due to the increases mentioned
above and the stronger South African rand. Operating cost per ton
at R204 was unchanged from last quarter, the increase in operating
costs being offset by the increase in tons milled. South African
Operations DRIEFONTEIN September 2003 June 2003 Gold produced -
000'oz 289.0 285.9 Total cash costs - R/kg 67,835 63,784 - US$/oz
284 256 Production at Driefontein increased 1 per cent to 289,000
ounces. This was due to an increase in underground tonnage at a
constant yield of 8.1 grams per ton compared to the previous
quarter. Underground tonnage increased to 994,000 tons from 964,000
tons, while overall tonnage decreased to 1,603,000 tons from
1,624,000 tons due to a reduction in the lower grade surface
material. The decreased proportion of surface to underground ore
treated resulted in the combined yield increasing from 5.5 grams
per ton last quarter to 5.6 grams per ton this quarter. Total cash
costs increased by 6 per cent in rand terms to R67,835 per kilogram
from R63,784 per kilogram last quarter. This was due to an increase
in development and underground volumes milled, as well as the
effect of the increased labour costs due to the wage increases. In
US dollar terms total cash costs increased from US$256 per ounce to
US$284 per ounce quarter on quarter as a result of the stronger
rand, allied with the increased operating costs. Operating profit
thus declined from R174 million (US$25 million) in the June quarter
to R133 million (US$18 million) in the current quarter. Capital
expenditure was significantly lower at R88 million (US$12 million)
for the quarter compared to R193 million (US$34 million) in the
previous quarter mainly due to timing and a conscious effort to
defer lower priority capital given the current rand price
environment. Despite some teething problems on commissioning, the
Driefontein 1 plant mill installation should achieve design
capacities towards the end of the December quarter. The
commissioning and stabilising process will impact on the tons
milled during the December quarter. As a consequence there will be
a temporary build up of ore stockpiles. All efforts are being
expended to catch up the backlog but overall gold production for
the December quarter is likely to be lower. The old comminution
section has been shut down and preparations for demolition are
underway. KLOOF September 2003 June 2003 Gold produced - 000'ozs
262.4 259.7 Total cash costs - R/kg 76,614 70,516 - US$/oz 320 283
Gold production at Kloof was 262,400 ounces, which like
Driefontein, was 1 per cent higher than the previous quarter. This
was due to marginally higher underground grades, which offset the
slightly lower underground and surface mill tonnage. Underground
and surface tonnage was 969,000 tons and 278,000 tons respectively.
As surface grades remained constant, the combined yield increased
quarter on quarter from 6.4 grams per ton to 6.5 grams per ton. As
a result of continued losses experienced at the 9 shaft marginal
mining and development project due to the strong rand, the decision
has been made to put this shaft and project on care and
maintenance. Total cash costs increased by 9 per cent in rand terms
to R76,614 per kilogram and by 13 per cent in US dollar terms, from
US$283 to US$320 per ounce. The increase in gold output was offset
by the lower gold price and higher costs due to the increase in
labour costs. This resulted in operating profit decreasing to R55
million (US$7 million) this quarter from R106 million (US$17
million) last quarter. Capital expenditure was R124 million (US$17
million) for the quarter compared to R114 million (US$22 million)
in the previous quarter. The Kloof 3 plant pumpcell installation
has been commissioned and is operating at design capacity and
extraction efficiency. Marginal areas are being closed across the
mine as a result of the rand strengthening. Old gold programmes and
high grade VCR pillar mining will be accelerated to offset some of
this production loss. Overall gold production in the December
quarter is expected to be similar to the September quarter. BEATRIX
September 2003 June 2003 Gold produced - 000'ozs 159.2 171.1 Total
cash costs - R/kg 78,509 68,401 - US$/oz 328 275 Gold production at
Beatrix decreased by 7 per cent to 159,200 ounces from 171,100
ounces achieved in the previous quarter. This decrease was due to
significantly lower underground and surface yields. Underground
yields decreased from 5.1 grams per ton to 4.4 grams per ton due to
the mining mix achieved during the quarter. Mining mixes were
adversely affected at 2 and 4 shafts during the quarter. The
constraints at these shafts mainly relate to limited flexibility in
stoping operations. At 2 shaft an increased amount of ledging and
equipping on new raises and stoping areas had to be done during the
quarter. The process has established a number of higher grade
panels for the remainder of the year. Beatrix 4 shaft incurred
operating losses of R27 million (US$4 million) during the quarter
arising from the issues referred to below. An increase in
production to historic levels would assist in ameliorating this
loss. At 4 shaft there were delays in a number of raise holings due
to the intersection of geological structures. A number of panels in
the high grade section at 4 shaft also experienced temporary grade
declines during the quarter. Increased ledging and equipping was
done to counteract the effects of these grade declines and also to
improve flexibility. These initiatives should result in an
improvement in grades over the balance of the year. Surface yields
decreased from 1.1 grams per ton to 0.8 grams per ton. Management
focus in this area has resulted in improved underground yields
since quarter end. Interventions made should improve underground
yields towards the reserve grade of 5 grams per ton. The lower
yields were partly offset by increased tonnage. Underground ore
milled increased to 1,054,000 tons this quarter from 1,002,000
tons, while surface tons increased 81 per cent from 182,000 tons to
329,000 tons this quarter. This increase was due to 189,000 tons
sent to the neighbouring Joel mine for toll processing, an increase
of 156,000 tons when compared to the June quarter. Total cash costs
increased 15 per cent in rand terms to R78,509 per kilogram and
increased to US$328 per ounce from US$275 per ounce last quarter.
The increase is due to a lower yield as well as the stronger rand,
increased volumes and higher labour costs. Operating profit
therefore declined from R81 million (US$11 million) to R28 million
(US$4 million) quarter on quarter. Capital expenditure decreased
from R117 million (US$21 million) last quarter to R77 million
(US$11 million) this quarter. In the short term production at this
quarter's level should be maintained. International Operations
Ghana TARKWA September 2003 June 2003 Gold produced - 000'ozs 147.7
129.1 Total cash costs - US$/oz 210 213 Heap leach throughput
realised record levels at just over 4 million tons for the quarter
while gold production increased to 147,700 ounces compared to
129,100 ounces in the June quarter. This increase in gold
production is mainly due to a 10 per cent increase in the volume of
ores treated and a 4 per cent increase in head grade. Gold in
process release contributed some 10,000 ounces in this period
compared to some 7,000 ounces in the June quarter. The ongoing
recovery in gold from the heaps reflects the continuing upgrade of
the solution management systems on the leach pads and the move to
lower lifts on the north leach pads, following the expansion of
those facilities. For the September quarter operating costs
increased by 15 per cent to US$30 million (R220 million) in line
with the increase in mining volumes. Unit operating costs decreased
marginally from US$7.06 per ton to US$6.95 per ton. Total cash
costs decreased similarly to US$210 per ounce. Tarkwa contributed
US$22 million (R165 million) to operating profit, an increase of 29
per cent quarter on quarter. The Tarkwa plant construction is
underway and on schedule and is the main reason for the small
increase in capital expenditure this quarter to US$11 million.
Tarkwa should maintain gold production achieved this quarter for
the remainder of this year, noting however the uncertainty in
predicting gold recovery from gold in process on the leach pads.
DAMANG September 2003 June 2003 Gold produced - 000'ozs 70.1 78.3
Total cash costs - US$/oz 232 223 At Damang, production decreased
10 per cent to 70,100 ounces because of a decrease in mill
throughput, from 1,309,000 tons to 1,186,000 tons. This was as a
result of a planned maintenance shut down in July. Yield was
marginally down at 1.8 grams per ton. Total cash costs increased
from US$223 per ounce to US$232 per ounce quarter on quarter. The
increase in unit cash costs occurred despite a decrease in unit
operating costs from US$14.2 per ton to US$13.5 per ton treated,
due to the inclusion of a US$1.6 million gold in process credit in
the June quarter compared to a US$0.07 million gold in process
charge in this quarter, reflecting the ongoing movement in high
value ores through the stockpiles. The net result was a decrease in
operating profit of 6 per cent to US$9 million (R69 million).
Exploration to increase the current ore reserve continues and R5
million (US$1 million) was included in costs during the quarter.
Capital expenditure once again was negligible. Production should be
marginally higher next quarter as compared to the September quarter
as there are no planned mill stoppages. Australia ST IVES September
2003 June 2003 Gold produced - 000'ozs 127.0 141.0 Total cash costs
- A$/oz 412 347 - US$/oz 271 221 Gold production at St Ives was
127,000 ounces, a decrease of 10 per cent when compared to the June
quarter's production of 141,000 ounces. This decrease was due to a
15 per cent decline in average head grades treated, partially
offset by a 13 per cent increase in ore treated from 1,495,000 tons
last quarter to 1,688,000 tons this quarter. This increase in
treatment volumes was due to a doubling of the toll treatment
program to 173,000 tons, producing 12,000 ounces, and a 113,000 ton
increase in heap leach volumes to 715,000 tons for the quarter, on
the back of ongoing optimisation of that circuit and the treatment
of softer ores there. The decline in average head grade was largely
due to a decline in availability of high grade ores from the
Junction mine, following mining difficulties there in the high
grade stopes, and a reduction in volumes of high grade open pit
ores from the Argo and Temeraire pits. Argo reflects its position
in the mining cycle while Temeraire has been depleted. As noted
above the mix of ores treated also changed quarter on quarter with
a larger contribution from low grade heap leach ores. Since the
acquisition of this mine in December 2001, the mining mix between
underground and surface has varied considerably. Initially open
pits provided some two thirds of gold treated, but with the current
commissioning of the new Argo and Leviathan underground mines, this
mix will move to around 50/50 from each source by financial
year-end. As previously reported the concurrent commissioning of
these mines in this year will put pressure on margins, but in 2005
the benefits of these additional sources of high grade will start
to be seen. Operating costs at A$51 million (R249 million, US$33
million) were 5 per cent above the previous quarter due to costs
associated with toll treatment and an increase in ore treated from
underground. Total cash costs were thus A$412 per ounce (US$271 per
ounce) for the September quarter compared to A$347 per ounce
(US$221 per ounce) in the June quarter. The significant increase in
total cash costs was expected and will remain a feature of this
financial year with the commissioning of the new underground mines
referred to earlier and the build up in tonnage from the new Mars
open pit on Lake Lefroy. Operating costs per ton reduced from A$33
to A$30 quarter on quarter. This decrease resulted from the higher
cost being more than offset by the increased tonnage, especially
the increase in toll milling. St Ives contributed A$16 million (R79
million, US$11 million) to operating profit compared to A$30
million (R148 million, US$19 million) in the previous quarter. The
gold price achieved of A$553 per ounce was similar to the June
quarter. Capital expenditure reduced to A$26 million (R126 million,
US$18 million) in the September quarter from A$29 million (R144
million, US$26 million) in the June quarter. The mining mix over
the remaining quarters is planned to return yields to recent
historic levels and supported by an expansion of open pit mining
volumes and an associated expansion of the toll treatment program,
gold production should improve accordingly. AGNEW September 2003
June 2003 Gold produced - 000'ozs 45.9 35.8 Total cash costs -
A$/oz 372 449 - US$/oz 245 286 Gold production at Agnew increased
28 per cent to 45,900 ounces quarter on quarter. Production from
the Kim and Crusader underground operations were both above
forecast. At Kim (Waroonga underground) volumes increased from
18,000 tons to 47,000 tons quarter on quarter at a head grade of
17.3 grams per ton or 34 per cent above the June quarter. At
Crusader volumes were maintained and as a consequence less low
grade surface stockpile was required. This was the main reason for
the increase in reported yield from 3.3 grams per ton last quarter
to 4.6 grams per ton this quarter. The mine reported a decrease in
total cash costs in Australian dollars from A$449 per ounce (US$286
per ounce) last quarter, to this quarter's A$372 per ounce (US$245
per ounce) as a result of the production increase and higher
grades. Operating costs increased from A$13 million (R63 million,
US$8 million) in the June quarter to A$14 million (R69 million,
US$9 million) in the current quarter in line with the increased
production. The contribution to operating profit from Agnew was A$8
million (R41 million, US$5 million) compared to a negative A$0.9
million (R4 million negative and US$nil) last quarter. Capital
expenditure was little changed at just below A$7 million (R33
million, US$5 million) as exploration and development of the
underground operations at Waroonga continued. Despite Agnew
performing above expectations this quarter it is anticipated that
this level of production can be maintained in the December quarter.
Capital and development projects TARKWA During the quarter design
and construction activities on the new mill/ CIL plant at Tarkwa
continued. Detailed engineering and design activities are now more
than half completed. In terms of procurement, the majority of major
items of equipment have been ordered and commitments representing
nearly 50 per cent of the planned expenditure have been made.
Construction activities during the quarter included clearing and
preparation of the plant site, excavation of foundations and
commencement of the construction of the primary crusher foundation.
Clearing of the tailings dam site, along with construction of the
haul road to this site, which is required during the construction
phase, were also commenced. The project remains on schedule for
commissioning in the second quarter of the 2005 financial year. In
respect of the conversion to owner mining, the final fleet
configuration was selected in this quarter and negotiations with
haul truck, support equipment and excavator suppliers were also
concluded. The first of three phases of the fleet build up will
commence in the fourth quarter of this financial year. DAMANG By
the end of the quarter the first pass exploration program, which
has been underway for some 18 months, testing the conglomerate
hosted gold potential across the Damang license area was largely
completed. While drilling is still occurring in some limited areas
of Tomento and Bonsa, the broad scale potential is now largely
understood. While gold hosting stacked conglomerates were
encountered through much of the 27 kilometre strike length,
significant proportions are unlikely to be pursued further as they
offer poor economic potential due to limited thicknesses and
geometries that would make them unsuitable for open pit mining. In
the areas of Tomento north, Tomento east and Lima South reasonable
continuity and geometry were encountered. Further evaluation is
occurring in these areas although they are likely to represent
incremental mill feed rather than a significant stand alone
project. Drilling at Tomento, Bonsa south and Rex is continuing. ST
IVES The optimisation and expansion project feasibility study,
examining the viability of installing a new and expanded mill/CIP
plant, was largely completed during the quarter and an investment
decision will be considered during the second quarter of this year.
While the exploration program to support the feasibility study was
completed in the June quarter, these activities on the site have
continued, with particular focus on the Greater Revenge Area and
the Argo and Leviathan complexes. Exploration New ventures that
were concluded during the quarter include a private placement,
joint venture option with Bolivar Gold Corporation on the El Callao
district in Venezuela. The investment in Bolivar amounted to R88
million (US$12 million) for the purchase of 12.34 million shares
giving an interest of 15 per cent. These types of equity
placement/joint venture option agreement have been a winning
strategy for Gold Fields. The company has invested over US$30
million in equity placements that are valued at over US$70 million
at current market prices. Over US$20 million of these gains have
been realised. Aside from these gains, Gold Fields experiences
exposure to a variety of high quality exploration projects without
the country set-up cost of entering a new jurisdiction. These
increased exploration and acquisition activities are part of Gold
Fields' response to a more favourable US dollar gold price
environment and outlook. During the quarter, Gold Fields completed
exploration drilling activities on Arctic Platinum in Finland, the
Radius joint venture in Guatemala, the Committee Bay joint venture
in Nunavut, Canada, the St Barbara joint venture in Western
Australia and the Higginsville project in Western Australia. Arctic
Platinum Project As previously reported, on 11 July 2003 Outokumpu
Oyj announced that it had concluded a transaction with South
Atlantic Resources Ltd., a Canadian junior mining company, to
dispose of its 49 per cent interest in the Arctic Platinum Project,
for a total consideration of US$31 million. In terms of the Arctic
Platinum Partnership Agreement, this disposal was subject to a pre-
emptive right in favour of Gold Fields. On 8 August 2003, it was
announced that Gold Fields would exercise this right. In terms of
the agreement Gold Fields paid US$31 million to acquire the
remaining 49 per cent interest, made up of US$23 million in cash
with the balance in the issue of 564,841 new Gold Fields shares.
This transaction was closed out during the quarter. The Arctic
Platinum Project is an advanced stage PGM exploration project in
Northern Finland. To date approximately 12 million ounces of PGM
resources have been delineated on the site. Corporate matters Black
economic empowerment transaction On 10 June 2003, Gold Fields and
Mvelaphanda Resources Limited, or Mvela Resources, issued a joint
cautionary announcement to shareholders, stating they had reached
agreement in principle for a broad based black economic empowerment
consortium, led by Mvela Resources, to acquire a beneficial
interest of 15 per cent in the South African gold mining assets of
Gold Fields for a consideration of R4.1 billion to be paid on
completion of the transaction. On 8 October 2003, Gold Fields and
Mvela Resources issued a further joint cautionary announcement to
shareholders stating that it had been agreed to extend the period
of exclusivity provided for by the agreement in principle until 28
February 2004, for the purpose of completing the conditions
precedent to the transaction. The transaction relates to Gold
Fields' current South African gold mining assets, which include the
Beatrix, Driefontein and Kloof mines and ancillary service
companies. Detailed life of mine valuations have shown that the
assets represent approximately 70 per cent of Gold Fields' total
value. As such, the purchase consideration of the empowerment
interest has been determined with reference to this percentage of
Gold Fields' market capitalisation, based on the weighted average
traded price of shares in Gold Fields over the 30 business days
prior to the date of the initial announcement. The funding required
by the empowerment consortium will be sourced through a significant
equity capital raising by Mvela Resources, the provision by Gold
Fields of vendor financing on commercial terms and the raising of
debt by Mvela Resources for the balance of the purchase
consideration. Mvela is in the process of undergoing a debt raising
exercise. A detailed terms announcement will be made once funding
commitments are finalised. This transaction represents a
significant milestone towards meeting the requirements of the
Mining Charter. Sale of Driefontein's 1C11 block On 18 September
2003, it was announced that Driefontein sold the mining Block 1C11
and associated assets to AngloGold, for a cash consideration of
R315 million. This block is situated on Driefontein's western
boundary adjacent to AngloGold's TauTona mining operation. The
profit net of taxation amounted to R240 million. The sale is
subject to the suspensive condition that, to the extent necessary,
the transaction be approved by the Competition Commission. The
Block, only accessible in 10 years time by Driefontein, has an
estimated 576,000 ounces of recoverable gold. The value brought
forward by this deal will be used to invest in the current South
African operations. Awards Gold Fields Limited has received the
Squirrel award from the Investment Analysts Society of Southern
Africa (IASA) for "best reporting and communication" in the
resources, diamonds, precious metals and minerals category for the
2002 calendar year. Gold Fields also received the Samrec/IASA award
for best reporting of mineral resources and mineral reserves
according to the Samrec code for calendar 2002. Samrec is the South
African Mineral Resources Committee. Gold Fields will continue to
improve communication to all stakeholders and other interested
parties setting industry standards even higher than those achieved
in the past. 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. Mineral
resources and reserves On 2 October 2003, it was announced that
both Gold Fields' attributable mineral resources and reserves for
the fiscal year ended 30 June 2003 have increased. Attributable
resources have increased from 186.0 to 195.3 million ounces and
attributable reserves have increased by 3.0 million ounces to 81.5
million ounces despite depletion of 4.7 million ounces
(attributable gold produced 4.3 million ounces) during fiscal 2003.
This net increase in reserves reflects on the focus of organic
growth and exploration within Gold Fields. Annual Report The
financial statements for the year ended 30 June 2003 were approved
by the directors on 8 September 2003. A copy of the Annual Report
was subsequently forwarded to all shareholders, together with the
first ever Sustainable Development Report for the year ended 30
June 2003. This report has been compiled utilising the Global
Reporting Initiative guidelines as well as those of the Global
Mining Initiative. Our social development and fulfilling the
requirements of the Mining Charter are key corporate priorities
going forward. Outlook Gold production is not expected to be
materially different in the December 2003 quarter. Should the rand
gold price remain at current levels, revenue and operating margins
will continue to be under pressure. The lower operating margins
currently experienced at the South African operations have
necessitated a change in mining strategy at the South African
operations resulting in a reduction in marginal tonnage and a
review of paylimits. In the short term, notwithstanding the review
of paylimits, efforts are being made to increase production through
increased quality volumes and focus on the recovery of old gold. In
the longer term efforts are being made to increase productivity. At
current exchange rates there should not be a significant gain on
the Australian dollar currency financial instruments in the
December quarter. No significant asset sales, which boosted profits
in the last two quarters, are contemplated during the December
quarter. Basis of accounting The unaudited results for the quarter
have been prepared on the International Financial Reporting
Standards (IFRS) basis. The detailed financial, operational and
development results for the September 2003 quarter are submitted in
this report. These consolidated quarterly statements are prepared
in accordance with IFRS 34, Interim Financial Reporting. The
accounting policies are consistent with those applied at the
previous year-end. Income Statement International Financial
Reporting Standards Basis SA RAND Quarter (Figures are in millions
September June September unless otherwise stated) 2003 2003 2002
Revenue 2,952.4 2,970.7 3,963.5 Operating costs 2,341.8 2,223.8
2,402.2 Gold inventory change 40.8 29.7 (16.4) Operating profit
569.8 717.2 1,577.7 Amortisation and depreciation 298.8 306.4 341.9
Net operating profit 271.0 410.8 1,235.8 Finance income/(cost) 21.9
94.8 (38.8) - Net interest received and investment income 20.8 28.6
33.0 - Gain/(loss) on foreign debt, net of cash 1.1 66.2 (71.8)
Gain/(loss) on financial instruments 36.4 311.4 (201.9) Other
income/(expense) 12.4 (20.1) 11.0 Exploration (55.1) (100.4) (45.5)
Profit before tax and exceptional items 286.6 696.5 960.6
Exceptional gain 204.5 271.7 -- Profit before taxation 491.1 968.2
960.6 Mining and income taxation 37.3 151.1 385.7 - Normal taxation
47.8 (8.4) 288.7 - Deferred taxation (10.5) 159.5 97.0 Profit after
taxation 453.8 817.1 574.9 Minority interest 32.6 27.7 33.2 Net
earnings 421.2 789.4 541.7 Exceptional items: Sale of mineral
rights 187.2 -- -- Profit on sale of investments 16.1 301.8 --
Retirement of health care obligations -- (26.7) -- Other 1.2 (3.4)
-- Total exceptional items 204.5 271.7 -- Taxation 52.3 (1.7) --
Net exceptional items after tax 256.8 270.0 -- Net earnings per
share (cents) 89 167 115 Headline earnings 164.4 494.4 541.7
Headline earnings per share (cents) 35 104 115 Diluted earnings per
share (cents) 89 166 114 Net earnings excluding gains and losses on
financial instruments and foreign debt, net of cash and exceptional
items 136.4 225.9 735.1 Net earnings per share excluding gains and
losses on financial instruments and foreign debt, net of cash and
exceptional items (cents) 29 48 156 Gold sold - managed kg 34,257
34,244 37,913 Gold price received R/kg 86,184 86,751 104,542 Total
cash costs R/kg 67,566 63,369 61,222 Income Statement International
Financial Reporting Standards Basis US DOLLARS Quarter (Figures are
in millions September June September unless otherwise stated) 2003
2003 2002 Revenue 396.8 383.2 381.8 Operating costs 314.8 280.5
231.4 Gold inventory change 5.5 3.2 (1.6) Operating profit 76.5
99.5 152.0 Amortisation and depreciation 40.2 39.0 32.9 Net
operating profit 36.3 60.5 119.1 Finance income/(cost) 3.0 11.3
(3.7) - Net interest received and investment income 2.8 3.9 3.2 -
Gain/(loss) on foreign debt, net of cash 0.2 7.4 (6.9) Gain/(loss)
on financial instruments 4.9 35.1 (19.5) Other income/(expense) 1.7
(2.3) 1.1 Exploration (7.4) (11.6) (4.4) Profit before tax and
exceptional items 38.5 93.0 92.6 Exceptional gain 27.5 31.4 --
Profit before taxation 66.0 124.4 92.6 Mining and income taxation
5.0 22.8 37.1 - Normal taxation 6.4 2.8 27.8 - Deferred taxation
(1.4) 20.0 9.3 Profit after taxation 61.0 101.6 55.5 Minority
interest 4.4 3.6 3.2 Net earnings 56.6 98.0 52.3 Exceptional items:
Sale of mineral rights 25.2 -- -- Profit on sale of investments 2.2
34.2 -- Retirement of health care obligations -- (3.0) -- Other 0.1
0.2 -- Total exceptional items 27.5 31.4 -- Taxation 7.0 (0.4) --
Net exceptional items after tax 34.5 31.0 -- Net earnings per share
(cents) 12 21 11 Headline earnings 22.1 64.2 52.3 Headline earnings
per share (cents) 5 14 11 Diluted earnings per share (cents) 12 21
11 Net earnings excluding gains and losses on financial instruments
and foreign debt, net of cash and exceptional items 18.3 34.0 70.8
Net earnings per share excluding gains and losses on financial
instruments and foreign debt, net of cash and exceptional items
(cents) 4 8 15 Exchange rate - SA Rand/US Dollar 7.44 7.74 10.38
Gold sold - managed ozs (000) 1,101 1,101 1,219 Gold price received
$/oz 360 349 313 Total cash costs $/oz 282 255 183 Balance Sheets
International Financial Reporting Standards Basis SA RAND US
DOLLARS (Figures are in September June September June millions)
2003 2003 2003 2003 Mining and mineral 15,234.6 15,371.3 2,115.9
1,973.2 assets Non-current assets 283.9 275.0 39.4 35.3 Investments
777.2 512.1 107.9 65.7 Current assets 2,176.0 3,059.5 302.2 392.7 -
Other current assets 2,455.3 2,018.7 341.0 259.1 - Cash and
deposits (279.3) 1,040.8 (38.8) 133.6 Total assets 18,471.7
19,217.9 2,565.4 2,466.9 Shareholders' equity 11,237.6 11,295.5
1,560.8 1,450.0 Minority interest 498.6 668.2 69.3 85.8 Deferred
taxation 4,233.0 4,279.6 587.9 549.4 Long-term loans 100.7 164.2
14.0 21.1 Environmental rehabilitation 708.1 715.3 98.3 91.8
provisions Post-retirement health care provisions 90.8 90.7 12.6
11.6 Current liabilities 1,602.9 2,004.4 222.5 257.2 - Other
current liabilities 1,493.0 1,844.7 207.2 236.7 - Current portion
of long-term loans 109.9 159.7 15.3 20.5 Total equity and
liabilities 18,471.7 19,217.9 2,565.4 2,466.9 S.A. Rand/U.S. Dollar
conversion rate 7.20 7.79 Condensed Statements of Changes in Equity
International Financial Reporting Standards Basis SA RAND US
DOLLARS (Figures are in September September September September
millions) 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 (258.2) 11.6 83.6 (27.6) Issue of
share capital 0.6 0.6 0.1 0.1 Increase in share premium 76.1 23.5
10.2 8.3 Marked to market valuation of listed investments 174.8
88.4 23.5 2.2 Dividends (472.4) (1,038.5) (63.2) (96.6) Net
earnings 421.2 541.7 56.6 52.3 Balance as at the end of September
11,237.6 10,723.1 1,560.8 1,009.7 Reconciliation of Headline
Earnings with Net Earnings SA RAND US DOLLARS (Figures are in Sept.
June Sept. Sept. June Sept. millions) 2003 2003 2002 2003 2003 2002
Net earnings 421.2 789.4 541.7 56.6 98.0 52.3 Profit on disposal of
mineral rights and associated assets (187.2) -- -- (25.2) -- --
Taxation effect of profit on disposal of mineral rights and
associated assets (53.0) -- -- (7.1) -- -- Profit on sale of
investments (16.1) (301.8) -- (2.2) (34.2) -- Taxation effect of
profit on sale of investments 0.4 1.8 -- 0.1 0.2 -- Other after tax
adjustments (0.9) 5.0 -- (0.1) 0.2 -- Headline earnings 164.4 494.4
541.7 22.1 64.2 52.3 Headline earnings per share - cents 35 104 115
5 14 11 Cash Flow Statements International Financial Reporting
Standards Basis SA RAND Quarter September June September (Figures
are in millions) 2003 2003 2002 Cash flow from operating activities
31.6 577.1 995.7 Profit before tax and exceptional items 286.6
696.5 960.6 Exceptional items 204.5 271.7 -- Amortisation and
depreciation 298.8 306.4 341.9 Change in working capital (211.2)
(40.9) (162.3) Taxation paid (303.3) (123.7) (486.2) Other non-cash
items (243.8) (532.9) 341.7 Dividends paid (472.4) (22.5) (1,038.5)
Ordinary shareholders (472.4) -- (1,038.5) Minority shareholders in
subsidiaries -- (22.5) -- Cash utilised in investing activities
(766.0) (579.9) (575.4) Capital expenditure - additions (552.7)
(709.2) (557.3) Capital expenditure - proceeds on disposal 56.5
24.3 0.1 Purchase of investments (280.3) (11.5) (12.8) Proceeds on
the disposal of investments 17.6 358.8 -- Environmental and
post-retirement health care payments (7.1) (242.3) (5.4) Cash flow
from financing activities (61.9) (728.7) 24.1 Loans repaid (90.6)
(704.9) -- Minority shareholder's loan received/(repaid) 12.4
(31.0) -- Shares issued 16.3 7.2 24.1 Net cash inflow/(outflow)
(1,268.7) (754.0) (594.1) Translation adjustment (51.4) (26.6) 6.1
Cash at beginning of period 1,040.8 1,821.4 2,027.1 Cash/(debt) at
end of period (279.3) 1,040.8 1,439.1 US DOLLARS Quarter September
June September (Figures are in millions) 2003 2003 2002 Cash flow
from operating activities 4.2 95.0 95.3 Profit before tax and
exceptional items 38.5 93.0 92.6 Exceptional items 27.5 31.4 --
Amortisation and depreciation 40.2 39.0 32.9 Change in working
capital (28.4) (3.3) (15.6) Taxation paid (40.8) (3.4) (47.5) Other
non-cash items (32.8) (61.7) 32.9 Dividends paid (63.2) (2.9)
(96.6) Ordinary shareholders (63.2) -- (96.6) Minority shareholders
in subsidiaries -- (2.9) -- Cash utilised in investing activities
(103.0) (61.2) (55.4) Capital expenditure - additions (74.3) (86.5)
(53.7) Capital expenditure - proceeds on disposal 7.6 2.9 --
Purchase of investments (37.7) (1.4) (1.2) Proceeds on the disposal
of investments 2.4 50.7 -- Environmental and post-retirement health
care payments (1.0) (26.9) (0.5) Cash flow from financing
activities (8.5) (98.2) 2.3 Loans repaid (12.4) (94.5) -- Minority
shareholder's loan received/(repaid) 1.7 (4.7) -- Shares issued 2.2
1.0 2.3 Net cash inflow/(outflow) (170.5) (67.3) (54.4) Translation
adjustment (1.9) (22.6) (5.8) Cash at beginning of period 133.6
223.5 195.7 Cash/(debt) at end of period (38.8) 133.6 135.5
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.
Currency Financial Instruments - at quarter ended September 2003 US
DOLLAR / AUSTRALIAN DOLLAR Year ended 30 June 2004 2005 2006 2007
TOTAL Forward sales: Amount (US Dollars) -000's 37,500 50,000
50,000 37,500 175,000 Average rate (USD/AUD) 0.4934 0.4934 0.4934
0.4934 0.4934 Zero cost collar: Amount (US Dollars) -000's --
37,500 50,000 37,500 125,000 Average downside protection level
(USD/AUD) -- 0.5191 0.5191 0.5191 0.5191 Average upside benefit cap
(USD/AUD) -- 0.4289 0.4289 0.4289 0.4289 The marked to market value
of all transactions making up the positions as at the end of
September 2003 in the above table, was a positive R576.4 million
(US $80.1 million). The value was based on exchange rates of
ZAR/USD7.20 and USD/AUD0.6814 and the prevailing interest rates and
volatilities at the time. US DOLLAR / RAND Year ended 30 June 2004
2005 2006 2007 TOTAL Forward purchases: Amount (US Dollars) -000's
40,000 -- -- -- 40,000 Average rate (ZAR/USD) 8.68 -- -- -- 8.68
During the quarter, additional forward cover of US$4 million was
purchased in respect of the Tarkwa mill and owner mining projects
approved. The total forward purchase of US$40 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 R40.8 million
(US$5.7 million negative). The value was based on an exchange rate
of ZAR/USD7.20 and the prevailing interest rates and volatilities
at the time. FIRST AND FINAL ADD -- TABULAR MATERIAL -- TO FOLLOW
DATASOURCE: Gold Fields Limited CONTACT: CORPORATE OFFICE - Gold
Fields Limited, +27-11-644-2400, fax +27-11-484-0626; or London
Office, +44-207-499-3916, fax +44-207-491-1989; DIRECTORS - C M T
Thompson (Chairman, Canadian), A J Wright (Deputy Chairman), I D
Cockerill (Chief Executive Officer, British), G J Gerwel, N J
Holland (Chief Financial Officer, British), J M McMahon (British),
G R Parker (USA), R L Pennant-Rea (British), P J Ryan, T M G
Sexwale, B R van Rooyen and C I von Christierson; COMPANY SECRETARY
- C Farrel (Johannesburg), +27-11-644-2406, fax +27-11-484-0626;
INVESTOR RELATIONS - Willie Jacobsz, +27-11-644-2460; Europe &
South Africa: Nerina Bodasing, +27-11-644-2630, fax
+27-11-484-0639, or ; North America: Cheryl A. Martin,
+1-303-796-8683 fax +1-303-796-8293, or ; TRANSFER OFFICES -
Johannesburg: Computershare Limited, +27-11-370-5000, fax
+27-11-370-5271; London: Capita Registrars, +44-208-639-2000, fax
+44-208-658-3430; AMERICAN DEPOSITARY RECEIPT BANKER - Bank of New
York, United States, +1-212-815-5133, fax +1-212 571-3050, or Bank
of New York, United Kingdom, +44-207-322-6341, fax +44-207-322-6028
Copyright