/FIRST ADD -- LNM003 -- Gold Fields Limited: Q2 F2005 Results/
Outlook Shareholders are advised, that gold production in the March
quarter is forecast to increase 4 per cent to about 1,090,000
attributable ounces. As referred to earlier, the majority of this
increase will come from St Ives, together with the full impact of
the new Tarkwa mill. St Ives will run both the old and new mill in
parallel for the first half of the March quarter. Cash costs will
be similar to the December quarter. Despite this increase in
production, if the gold price remains at current levels -- below
R82,000 per kilogram -- earnings will be somewhat lower if the
effect of the Mvela interest rate swap, which is subject to market
valuation at each quarter end, is excluded. Agreement reached
between Gold Fields and Mvela Resources Shareholders of Gold Fields
and Mvela Resources ("Shareholders") are referred to the joint
announcement published by Mvela Resources and Gold Fields during
March 2004, in terms of which Shareholders were advised of the
fulfilment of all material conditions precedent to the transaction
in terms of which: -- Mvelaphanda Gold (Proprietary) Limited
("Mvela Gold"), a wholly-owned subsidiary of Mvela Resources,
advanced a loan in the amount of R4,139 million to GFI-Mining South
Africa (Pty) Liminted (GFI-SA), the purpose of which was to
discharge, in part, the amount payable by GFI-SA for the South
African gold mining assets and business operations acquired by it
from wholly-owned subsidiaries of Gold Fields (the "GFI-SA Loan");
-- Mvela Gold will acquire a 15 per cent interest in GFI-SA (the
"GFI-SA Shares") by means of a subscription for shares for cash at
a subscription price of R4,139 million on the date upon which the
GFI-SA Loan is repaid or, at Mvela Gold's election, on the date
upon which the GFI-SA Loan becomes repayable; -- Each of Mvela Gold
or Gold Fields have the right to require the exchange of the GFI-SA
shares in return for the issue to Mvela Gold of new ordinary shares
in Gold Fields, In terms of the Transaction it was agreed that if
either of Mvela Gold or Gold Fields exercised the right to require
the exchange of the GFI-SA Shares for ordinary shares of an
equivalent value in Gold Fields, such exchange would be on a basis
consistent with the valuation method applied when the terms of the
Transaction were first agreed and announced (the "Right of
Exchange"). Shareholders are advised that the minimum and maximum
number of Gold Fields shares that will be issued by Gold Fields
following the exercise of the Right of Exchange have been agreed
between inter alia, Mvela Resources, Gold Fields, Mvela Gold and
GFI-SA (the "Exchange Agreement"). In terms of the Exchange
Agreement, Mvela Gold will be entitled to be issued with not less
than 45 million and not more than 55 million Gold Fields Shares,
currently comprising 8.38 per cent and 10.05 per cent of the issued
share capital of Gold Fields on a fully diluted basis respectively,
if the Right of Exchange is exercised. If during the period prior
to the date upon which the Right of Exchange is exercised: -- the
share capital structure of Gold Fields is significantly changed in
any way; or -- Gold Fields undertakes certain corporate activities
or effects payments or distributions to Gold Fields shareholders
outside the normal, ordinary and regular course of business, the
number of Gold Fields shares to be issued by Gold Fields will be
adjusted accordingly on a pro rata basis to ensure that the value
of the Gold Fields shares to be issued to Mvela Gold is unaffected
by any such change in share capital, corporate activity or
distributions. Any dispute between the parties as to any adjustment
of the number of Gold Fields shares to be issued will be resolved
by an independent merchant or investment banker selected on the
basis set out more fully in the Exchange Agreement. The terms of
the Right of Exchange did not provide any certainty to Mvela
Resources regarding the minimum shareholding it would receive in
Gold Fields at the time the Right of Exchange was exercised. By
fixing the minimum number of Gold Fields shares that Mvela Gold
will receive when the Right of Exchange is exercised, the Exchange
Agreement provides certainty regarding Mvela Resources' ultimate
shareholding in Gold Fields thereby securing a sustainable black
economic empowerment partnership as was intended. In exchange for
providing certainty to Mvela Resources with respect to the minimum
number of Gold Fields shares to be issued to Mvela Gold it was also
agreed to set a cap on the maximum number of Gold Fields shares to
be issued to Mvela Gold following the exercise of the Right of
Exchange. Basis of accounting The unaudited results for the quarter
and six months have been prepared on the International Financial
Reporting Standards (IFRS) basis. The detailed financial,
operational and development results for the December 2004 quarter
are submitted in this report. These consolidated quarterly
statements are prepared in accordance with IAS 34, Interim
Financial Reporting. The accounting policies are consistent with
those applied at the previous year-end. I.D. Cockerill Chief
Executive Officer 31 January 2005 Income Statement International
Financial Reporting Standards Basis SA Rand Quarter (Figures are in
millions unless December September December otherwise stated) 2004
2004 2003 Revenue 2,945.5 2,704.8 2,922.9 Operating costs 2,341.2
2,335.9 2,354.7 Gold inventory change (32.5) (87.1) 23.6 Operating
profit 636.8 456.0 544.6 Amortisation and depreciation 379.1 370.7
307.5 Net operating profit 257.7 85.3 237.1 Finance income 20.4
32.3 44.9 - Net interest and investment income/(costs) 15.5 16.3
(15.2) - Exchange gain on foreign debt, net of cash 4.9 16.0 60.1
Gain on financial instruments 146.7 151.7 119.5 Other
(expense)/income (23.9) (4.5) 3.5 Exploration (39.1) (54.9) (35.4)
Profit before tax and exceptional items 361.8 209.9 369.6
Exceptional (loss)/gain (109.4) - 31.4 Profit before taxation 252.4
209.9 401.0 Mining and income taxation 134.5 85.9 83.6 - Normal
taxation 78.4 63.3 40.0 - Deferred taxation 56.1 22.6 43.6 Profit
after taxation 117.9 124.0 317.4 Minority interest 37.6 21.9 40.0
Net earnings 80.3 102.1 277.4 Exceptional items: Profit on sale of
investments 38.9 - 32.3 Harmony hostile bid (82.9) - - Sale of
mineral rights - - - IAMGold transaction (64.8) - - Other (0.6) -
(0.9) Total exceptional items (109.4) - 31.4 Taxation (3.8) - (6.9)
Net exceptional items after tax and minority interest (113.2) -
24.5 Net earnings per share (cents) 16 21 57 Headline earnings 45.2
102.1 249.0 Headline earnings per share (cents) 9 21 51 Diluted
earnings per share (cents) 16 20 56 Net earnings/(loss) excluding
gains and losses on financial instruments and foreign debt, net of
cash and exceptional items 100.3 (5.5) 110.4 Net earnings/(loss)
per share excluding gains and losses on financial instruments and
foreign debt, net of cash and exceptional items (cents) 20 (1) 23
Gold sold - managed kg 34,705 33,060 34,451 Gold price received
R/kg 84,872 81,815 84,842 Total cash costs R/kg 64,921 66,516
66,991 SA Rand Six months to (Figures are in millions unless
December December otherwise stated) 2004 2003 Revenue 5,650.3
5,875.3 Operating costs 4,677.1 4,696.5 Gold inventory change
(119.6) 64.4 Operating profit 1,092.8 1,114.4 Amortisation and
depreciation 749.8 606.3 Net operating profit 343.0 508.1 Finance
income 52.7 66.8 - Net interest and investment income/(costs) 31.8
5.6 - Exchange gain on foreign debt, net of cash 20.9 61.2 Gain on
financial instruments 298.4 155.9 Other (expense)/income (28.4)
15.9 Exploration (94.0) (90.5) Profit before tax and exceptional
items 571.7 656.2 Exceptional (loss)/gain (109.4) 235.9 Profit
before taxation 462.3 892.1 Mining and income taxation 220.4 120.9
- Normal taxation 141.7 87.8 - Deferred taxation 78.7 33.1 Profit
after taxation 241.9 771.2 Minority interest 59.5 72.6 Net earnings
182.4 698.6 Exceptional items: Profit on sale of investments 38.9
48.4 Harmony hostile bid (82.9) - Sale of mineral rights - 187.2
IAMGold transaction (64.8) - Other (0.6) 0.3 Total exceptional
items (109.4) 235.9 Taxation (3.8) 45.4 Net exceptional items after
tax and minority interest (113.2) 281.3 Net earnings per share
(cents) 37 146 Headline earnings 147.3 413.4 Headline earnings per
share (cents) 30 86 Diluted earnings per share (cents) 36 145 Net
earnings/(loss) excluding gains and losses on financial instruments
and foreign debt, net of cash and exceptional items 94.8 246.8 Net
earnings/(loss) per share excluding gains and losses on financial
instruments and foreign debt, net of cash and exceptional items
(cents) 19 52 Gold sold - managed kg 67,765 68,708 Gold price
received R/kg 83,381 85,511 Total cash costs R/kg 65,700 67,277
Income Statement International Financial Reporting Standards Basis
US Dollar Quarter December September December (Figures are in
millions unless otherwise stated) 2004 2004 2003 Revenue 480.2
425.3 430.7 Operating costs 382.2 367.3 346.7 Gold inventory change
(5.5) (13.7) 3.6 Operating profit 103.5 71.7 80.4 Amortisation and
depreciation 61.9 58.3 45.2 Net operating profit 41.6 13.4 35.2
Finance income 3.3 5.1 6.4 - Net interest and investment
income/(costs) 2.5 2.6 (2.0) - Exchange gain on foreign debt, net
of cash 0.8 2.5 8.4 Gain on financial instruments 23.9 23.9 17.1
Other (expense)/income (3.9) (0.7) 0.5 Exploration (6.5) (8.6)
(5.3) Profit before tax and exceptional items 58.4 33.1 53.9
Exceptional (loss)/gain (17.5) - 5.7 Profit before taxation 40.9
33.1 59.6 Mining and income taxation 21.7 13.6 12.1 - Normal
taxation 12.7 10.0 6.0 - Deferred taxation 9.0 3.6 6.1 Profit after
taxation 19.2 19.5 47.5 Minority interest 6.1 3.4 5.8 Net earnings
13.1 16.1 41.7 Exceptional items: Profit on sale of investments 6.2
- 4.6 Harmony hostile bid (13.3) - - Sale of mineral rights - - -
IAMGold transaction (10.4) - - Other - - 1.1 Total exceptional
items (17.5) - 5.7 Taxation (0.6) - (0.6) Net exceptional items
after tax and minority interest (18.1) - 5.1 Net earnings per share
(cents) 3 3 9 Headline earnings 7.5 16.1 36.1 Headline earnings per
share (cents) 2 3 7 Diluted earnings per share (cents) 3 3 8 Net
earnings/(loss) excluding gains and losses on financial instruments
and foreign debt, net of cash and exceptional items 16.1 (0.9) 16.5
Net earnings/(loss) per share excluding gains and losses on
financial instruments and foreign debt, net of cash and exceptional
items (cents) 3 - 3 SA rand/US dollar conversion rate 6.12 6.36
6.76 Gold sold - managed ozs(000) 1,116 1,063 1,108 Gold price
received $/oz 431 400 390 Total cash costs $/oz 330 325 308 US
Dollar Six months to December December (Figures are in millions
unless otherwise stated) 2004 2003 Revenue 905.5 827.5 Operating
costs 749.5 661.5 Gold inventory change (19.2) 9.1 Operating profit
175.2 156.9 Amortisation and depreciation 120.2 85.4 Net operating
profit 55.0 71.5 Finance income 8.4 9.4 - Net interest and
investment income/(costs) 5.1 0.8 - Exchange gain on foreign debt,
net of cash 3.3 8.6 Gain on financial instruments 47.8 22.0 Other
(expense)/income (4.6) 2.2 Exploration (15.1) (12.7) Profit before
tax and exceptional items 91.5 92.4 Exceptional (loss)/gain (17.5)
33.2 Profit before taxation 74.0 125.6 Mining and income taxation
35.3 17.1 - Normal taxation 22.7 12.4 - Deferred taxation 12.6 4.7
Profit after taxation 38.7 108.5 Minority interest 9.5 10.2 Net
earnings 29.2 98.3 Exceptional items: Profit on sale of investments
6.2 6.8 Harmony hostile bid (13.3) - Sale of mineral rights - 25.2
IAMGold transaction (10.4) - Other - 1.2 Total exceptional items
(17.5) 33.2 Taxation (0.6) 6.4 Net exceptional items after tax and
minority interest (18.1) 39.6 Net earnings per share (cents) 6 21
Headline earnings 23.6 58.2 Headline earnings per share (cents) 5
12 Diluted earnings per share (cents) 6 20 Net earnings/(loss)
excluding gains and losses on financial instruments and foreign
debt, net of cash and exceptional items 15.2 34.8 Net
earnings/(loss) per share excluding gains and losses on financial
instruments and foreign debt, net of cash and exceptional items
(cents) 3 7 SA rand/US dollar conversion rate 6.24 7.10 Gold sold -
managed ozs(000) 2,179 2,209 Gold price received $/oz 416 375 Total
cash costs $/oz 327 295 Balance Sheet International Financial
Reporting Standards Basis SA Rand December June (Figures are in
millions unless otherwise stated) 2004 2004 Mining and mineral
assets 16,100.3 15,828.6 Non-current assets 344.9 331.4 Investments
773.3 801.2 Current assets 5,335.6 6,241.9 - Other current assets
2,358.1 2,107.4 - Cash and deposits 2,977.5 4,134.5 Total assets
22,554.1 23,203.1 Shareholders' equity 14,516.9 14,949.3 Minority
interest 734.8 662.9 Deferred taxation 3,367.2 3,336.1 Long-term
loans 1,393.8 1,428.6 Environmental rehabilitation provisions 735.6
715.4 Post-retirement health care provisions 52.4 58.1 Current
liabilities 1,753.4 2,052.7 - Other current liabilities 1,480.8
1,846.0 - Current portion of long-term loans 272.6 206.7 Total
equity and liabilities 22,554.1 23,203.1 S.A. Rand/US dollar
conversion rate S.A. Rand/Australian dollar conversion rate US
Dollars December June (Figures are in millions unless otherwise
stated) 2004 2004 Mining and mineral assets 2,824.6 2,512.5
Non-current assets 60.5 52.6 Investments 135.7 127.2 Current assets
936.1 990.8 - Other current assets 413.7 334.5 - Cash and deposits
522.4 656.3 Total assets 3,956.9 3,683.1 Shareholders' equity
2,546.8 2,372.9 Minority interest 128.9 105.2 Deferred taxation
590.7 529.5 Long-term loans 244.5 226.8 Environmental
rehabilitation provisions 129.1 113.6 Post-retirement health care
provisions 9.2 9.2 Current liabilities 307.7 325.9 - Other current
liabilities 259.9 293.1 - Current portion of long-term loans 47.8
32.8 Total equity and liabilities 3,956.9 3,683.1 S.A. Rand/US
dollar conversion rate 5.70 6.30 S.A. Rand/Australian dollar
conversion rate 4.36 4.41 Statement of changes in equity
International Financial Reporting Standards Basis SA Rand December
December (Figures are in millions unless otherwise stated) 2004
2003 Balance as at the beginning of the financial year 14,949.3
11,295.5 Currency translation adjustment and other (422.2) (245.4)
Issue of share capital 0.3 9.4 Increase of share premium 15.0
1,562.1 Marked to market valuation of listed investments (11.2)
130.7 Dividends (196.7) (472.4) Net earnings 182.4 698.6 Balance as
at the end of December 14,516.9 12,978.5 US Dollars December
December (Figures are in millions unless otherwise stated) 2004
2003 Balance as at the beginning of the financial year 2,372.9
1,450.0 Currency translation adjustment and other 173.5 164.4 Issue
of share capital - 1.3 Increase of share premium 2.4 220.0 Marked
to market valuation of listed investments (1.8) 18.4 Dividends
(29.4) (63.2) Net earnings 29.2 98.3 Balance as at the end of
December 2,546.8 1,889.2 Reconciliation of headline earnings with
net earnings SA Rand December September December (Figures are in
millions unless otherwise stated) 2004 2004 2003 Net
earnings/(loss) 80.3 102.1 277.4 Profit on sale of investments
(38.9) - (32.3) Taxation effect of profit on sale of investments
4.0 - 6.9 Profit on sundry asset sales - - (3.0) Other after tax
adjustments (0.2) - - Headline earnings 45.2 102.1 249.0 Headline
earnings per share (cents) 9 21 51 Based on headline earnings as
given above divided by 491,907,010 (September 2004 - 491,604,675
and December 2003 -484,511,921) being the weighted average number
of ordinary shares in issue US Dollars December September December
(Figures are in millions unless otherwise stated) 2004 2004 2003
Net earnings/(loss) 13.1 16.1 41.7 Profit on sale of investments
(6.4) - (4.6) Taxation effect of profit on sale of investments 0.8
- 0.6 Profit on sundry asset sales - - (1.6) Other after tax
adjustments - - - Headline earnings 7.5 16.1 36.1 Headline earnings
per share (cents) 2 3 7 Based on headline earnings as given above
divided by 491,907,010 (September 2004 - 491,604,675 and December
2003 - 484,511,921) being the weighted average number of ordinary
shares in issue Cash Flow Statements International Financial
Reporting Standards Basis SA Rand Quarter December September
December (Figures are in millions unless otherwise stated) 2004
2004 2003 Cash flow from operating activities 233.4 197.6 676.7
Profit before tax and exceptional items 361.8 209.9 369.6
Exceptional items (109.4) - 31.4 Amortisation and depreciation
379.1 370.7 307.5 Change in working capital (162.4) (182.9) 85.5
Taxation paid (69.3) (51.4) (50.7) Other non-cash items (166.4)
(148.7) (66.6) Dividends paid - (261.0) - Ordinary shareholders -
(196.7) - Minority shareholders in subsidiaries - (64.3) - Cash
utilised in investing activities (425.4) (775.9) (647.3) Capital
expenditure - additions (527.6) (754.7) (662.0) Capital expenditure
- proceeds on disposal 37.1 3.0 29.5 Purchase of investments (20.7)
(20.8) (57.3) Proceeds on the disposal of investments 88.4 2.2 54.2
Environmental and post-retirement health care payments (2.6) (5.6)
(11.7) Cash flow from financing activities 24.9 44.1 1,407.3 Loans
received 16.8 - - Loans repaid - (74.0) (103.2) Minority
shareholder's loan received - 110.9 15.7 Shares issued 8.1 7.2
1,494.8 Net cash (outflow)/inflow (167.1) (795.2) 1,436.7
Translation adjustment (264.1) 69.4 (53.4) Cash at beginning of
period 3,408.7 4,134.5 (279.3) Cash at end of period 2,977.5
3,408.7 1,104.0 SA Rand Six months to December December (Figures
are in millions unless otherwise stated) 2004 2003 Cash flow from
operating activities 431.0 708.3 Profit before tax and exceptional
items 571.7 656.2 Exceptional items (109.4) 235.9 Amortisation and
depreciation 749.8 606.3 Change in working capital (345.3) (125.7)
Taxation paid (120.7) (354.0) Other non-cash items (315.1) (310.4)
Dividends paid (261.0) (472.4) Ordinary shareholders (196.7)
(472.4) Minority shareholders in subsidiaries (64.3) - Cash
utilised in investing activities (1,201.3) (1,413.3) Capital
expenditure - additions (1,282.3) (1,214.7) Capital expenditure -
proceeds on disposal 40.1 86.0 Purchase of investments (41.5)
(337.6) Proceeds on the disposal of investments 90.6 71.8
Environmental and post-retirement health care payments (8.2) (18.8)
Cash flow from financing activities 69.0 1,345.4 Loans received
16.8 - Loans repaid (74.0) (193.8) Minority shareholder's loan
received 110.9 28.1 Shares issued 15.3 1,511.1 Net cash
(outflow)/inflow (962.3) 168.0 Translation adjustment (194.7)
(104.8) Cash at beginning of period 4,134.5 1,040.8 Cash at end of
period 2,977.5 1,104.0 US Dollar Quarter December September
December (Figures are in millions unless otherwise stated) 2004
2004 2003 Cash flow from operating activities 40.3 30.6 95.5 Profit
before tax and exceptional items 58.4 33.1 53.9 Exceptional items
(17.5) - 5.7 Amortisation and depreciation 61.9 58.3 45.2 Change in
working capital (26.5) (28.8) 10.7 Taxation paid (8.9) (8.6) (9.1)
Other non-cash items (27.1) (23.4) (10.9) Dividends paid - (39.5) -
Ordinary shareholders - (29.4) - Minority shareholders in
subsidiaries - (10.1) - Cash utilised in investing activities
(70.5) (122.1) (96.0) Capital expenditure - additions (86.8)
(118.7) (96.8) Capital expenditure - proceeds on disposal 5.9 0.5
4.5 Purchase of investments (3.4) (3.3) (9.8) Proceeds on the
disposal of investments 14.2 0.3 7.7 Environmental and
post-retirement health care payments (0.4) (0.9) (1.6) Cash flow
from financing activities 4.1 6.6 198.2 Loans received 2.7 - -
Loans repaid - (11.6) (14.6) Minority shareholder's loan received -
17.1 2.2 Shares issued 1.4 1.1 210.6 Net cash (outflow)/inflow
(26.0) (124.4) 197.7 Translation adjustment 24.0 (7.5) 1.8 Cash at
beginning of period 524.4 656.3 (38.8) Cash at end of period 522.4
524.4 160.7 US Dollar Six months to December December (Figures are
in millions unless otherwise stated) 2004 2003 Cash flow from
operating activities 70.9 99.7 Profit before tax and exceptional
items 91.5 92.4 Exceptional items (17.5) 33.2 Amortisation and
depreciation 120.2 85.4 Change in working capital (55.3) (17.7)
Taxation paid (17.5) (49.9) Other non-cash items (50.5) (43.7)
Dividends paid (39.5) (63.2) Ordinary shareholders (29.4) (63.2)
Minority shareholders in subsidiaries (10.1) - Cash utilised in
investing activities (192.6) (199.0) Capital expenditure -
additions (205.5) (171.1) Capital expenditure - proceeds on
disposal 6.4 12.1 Purchase of investments (6.7) (47.5) Proceeds on
the disposal of investments 14.5 10.1 Environmental and
post-retirement health care payments (1.3) (2.6) Cash flow from
financing activities 10.7 189.7 Loans received 2.7 - Loans repaid
(11.6) (27.0) Minority shareholder's loan received 17.1 3.9 Shares
issued 2.5 212.8 Net cash (outflow)/inflow (150.4) 27.2 Translation
adjustment 16.5 (0.1) Cash at beginning of period 656.3 133.6 Cash
at end of period 522.4 160.7 Hedging/Derivatives Policy The Group's
policy is to remain unhedged to the gold price. 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 and interest rate
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, except for the debt
portion of the interest rate swap which has been hedge accounted,
and accordingly the positions have been marked to market. On 7
January 2004, Gold Fields Australia closed out its Australian
dollar/United States dollar currency financial instruments. The
existing forward purchases of Australian dollars and the put and
call options were closed out by entering into equal and opposite
transactions. The close out of the outstanding open position of
US$275 million was at an average spot rate of 0.7670 US$/A$. These
transactions locked in gross profit amounting to US$115.7 million
and the underlying cash receipts were deferred to match the
maturity dates of the original transactions. An amount of US$102.8
million had already been accounted for up until the end of December
2003. In addition, in order that the Group was able to participate
in further Australian dollar appreciation, a strip of quarterly
maturing Australian dollar/US dollar call options were purchased in
respect of an amount of US$275 million of which the value dates and
amounts match those of the original structure. The Australian
dollar call options resulted in a premium of US$8.3 million. The
payment of the premium will match the maturity dates of the
original structure. The average strike price of the options is
0.7670 US$/A$. However, subsequent to this, on 7 May 2004, the
future US dollar values were fixed in Australian dollars to take
advantage of the weakened Australian dollar against the US dollar
at that time. The original value of the future cash flows was
US$107.4 million or A$140.0 million at 0.7670 US$/A$, the rate at
the time of the original transaction. The value fixed in Australian
dollar amounted to A$147 million, based on the spot rate on 7 May
2004 of 0.7158 US$/A$. The balance of A$107.6 million cash flow is
detailed below: Payment value dates Future cash flows - A$ '000 31
March 2005 14,694 30 June 2005 14,345 30 September 2005 13,954 30
December 2005 13,606 31 March 2006 13,292 30 June 2006 12,899 29
September 2006 12,561 29 December 2006 12,281 TOTAL 107,632 The
call options purchased at a cost of US$8.3 million are detailed
below: US Dollars/Australian Dollars Year ended 30 June 2005 2006
2007 TOTAL Australian dollar call options: Amount (US dollars)
-000's 62,500 100,000 75,000 237,500 Average strike price -(US$/A$)
0.7670 0.7670 0.7670 0.7670 The marked to market value of all
transactions making up the positions in the above table was a
positive US$6.4 million. This was based on an exchange rate of
A$/US$ 0.7650. The value was based on the prevailing interest rates
and volatilities at the time. US Dollars/Rand Year ended 30 June
2005 2006 2007 TOTAL Forward purchases: Amount (US Dollars) -000's
30,000 - - 30,000 Average rate -(ZAR/US$) 5.9611 - - 5.9611 The
marked to market value of all transactions making up the positions
in the above table was a negative R4.1 million (US$0.7 million
negative). The value was based on an exchange rate of ZAR/US$5.70
and the prevailing interest rates and volatilities at the time.
During the quarter US$30 million was rolled forward to 3 June 2005
at a cost of R24.5 million resulting in an improved rate from
6.6368 to 5.9611 rand to the US dollar. Interest rate swap In terms
of the Mvela loan, GFI Mining SA pays Mvela Gold interest on R4,139
million at a fixed interest rate, semi-annually. The interest rate
was fixed with reference to the five-year ZAR swap rate, at 9.6179%
plus a margin of 0.95%. GFI Mining SA simultaneously entered into
an interest rate swap agreement converting a fixed interest rate
exposure to a floating rate. In terms of the swap, GFI Mining SA is
now exposed to the three- month Jibar rate plus a margin of 1.025%.
The Jibar rate for the current quarter was fixed at 7.25%. For
accounting purposes the Mvela loan was split into a debt component
and an equity component and accordingly the net present value of
future interest payments (R1,654 million) was classified as debt,
while the balance (R2,454 million) was categorised as equity. The
marked to market value of the swap at the end of December 2004 was
a positive R259 million. Of this R206 million was accounted for in
the income statement and the balance of R53 million has been hedge
accounted and credited to the debt portion of the loan. As the
marked to market at the end of June 2004 was a negative R104
million, this translates into a positive movement of R363 million
for the six months to date, of which R76 million has been credited
to the debt portion of the loan and the balance of R287 million has
been taken to the income statement. Of the R287 million, R147
million was accounted for in the September quarter, leaving a
balance of R140 million which was accounted for in the December
quarter. In addition, the settlement gain on the swap for the
December quarter was R23 million of which R15 million was taken to
the income statement and R8 million credited to the debt portion of
the loan. A further settlement gain of R22 million has been locked
in for the three-month period to March 2005. The settlement gain to
date amounts to R54 million. The value was based on the prevailing
interest rates and volatilities at the time. Total Cash Costs Gold
Institute Industry Standard (All figures are in Rand millions
unless otherwise stated) Total Mine Operations Operating costs(1)
December 2004 2,341.2 September 2004 2,335.9 Financial year to date
4,677.1 Gold in process and December 2004 (23.0) inventory change*
September 2004 (67.6) Financial year to date (90.6) Less:
Rehabilitation costs December 2004 11.3 September 2004 11.0
Financial year to date 22.3 Production taxes December 2004 7.6
September 2004 8.4 Financial year to date 16.0 General and admin
December 2004 82.7 September 2004 84.6 Financial year to date 167.3
Cash operating costs December 2004 2,216.6 September 2004 2,164.3
Financial year to date 4,380.9 Plus: Production taxes December 2004
7.6 September 2004 8.4 Financial year to date 16.0 Royalties
December 2004 28.9 September 2004 26.3 Financial year to date 55.2
TOTAL CASH COSTS(2) December 2004 2,253.1 September 2004 2,199.0
Financial year to date 4,452.1 Plus: Amortisation* December 2004
343.8 September 2004 325.1 Financial year to date 668.9
Rehabilitation December 2004 11.3 September 2004 11.0 Financial
year to date 22.3 TOTAL PRODUCTION COSTS(3) December 2004 2,608.2
September 2004 2,535.1 Financial year to date 5,143.3 Gold sold -
thousand ounces December 2004 1,115.8 September 2004 1,062.9
Financial year to date 2,178.7 TOTAL CASH COSTS December 2004 330 -
US$/oz September 2004 325 Financial year to date 327 TOTAL
PRODUCTION COSTS December 2004 382 - US$/oz September 2004 375
Financial year to date 378 SA Operations (All figures are in Rand
millions unless otherwise stated) Total Driefontein Kloof Operating
costs(1) December 2004 1,687.4 625.1 649.4 September 2004 1,663.7
621.9 636.0 Financial year to date 3,351.1 1,247.0 1,285.4 Gold in
process and December 2004 - - - inventory change* September 2004 -
- - Financial year to date - - - Less: Rehabilitation costs
December 2004 9.9 2.8 5.5 September 2004 9.7 2.8 5.3 Financial year
to date 19.6 5.6 10.8 Production taxes December 2004 7.6 0.7 4.2
September 2004 8.4 2.5 4.7 Financial year to date 16.0 3.2 8.9
General and admin December 2004 53.1 21.7 18.8 September 2004 58.4
24.6 21.3 Financial year to date 111.5 46.3 40.1 Cash operating
costs December 2004 1,616.8 599.9 620.9 September 2004 1,587.2
592.0 604.7 Financial year to date 3,204.0 1,191.9 1,225.6 Plus:
Production taxes December 2004 7.6 0.7 4.2 September 2004 8.4 2.5
4.7 Financial year to date 16.0 3.2 8.9 Royalties December 2004 - -
- September 2004 - - - Financial year to date - - - TOTAL CASH
COSTS(2) December 2004 1,624.4 600.6 625.1 September 2004 1,595.6
594.5 609.4 Financial year to date 3,220.0 1,195.1 1,234.5 Plus:
Amortisation* December 2004 173.3 58.4 92.3 September 2004 167.0
58.4 87.0 Financial year to date 340.3 116.8 179.3 Rehabilitation
December 2004 9.9 2.8 5.5 September 2004 9.7 2.8 5.3 Financial year
to date 19.6 5.6 10.8 TOTAL PRODUCTION COSTS(3) December 2004
1,807.6 661.8 722.9 September 2004 1,772.3 655.7 701.7 Financial
year to date 3,579.9 1,317.5 1,424.6 Gold sold - thousand ounces
December 2004 725.9 287.7 280.6 September 2004 700.2 283.5 266.6
Financial year to date 1,426.1 571.2 547.2 TOTAL CASH COSTS
December 2004 366 341 364 - US$/oz September 2004 358 330 359
Financial year to date 362 335 362 TOTAL PRODUCTION COSTS December
2004 407 376 421 - US$/oz September 2004 398 364 414 Financial year
to date 402 370 417 (All figures are in Rand millions SA
International unless otherwise stated) Operations Operations
Beatrix Total Operating costs(1) December 2004 412.9 653.8
September 2004 405.8 672.2 Financial year to date 818.7 1,326.0
Gold in process and December 2004 - (23.0) inventory change*
September 2004 - (67.6) Financial year to date - (90.6) Less:
Rehabilitation costs December 2004 1.6 1.4 September 2004 1.6 1.3
Financial year to date 3.2 2.7 Production taxes December 2004 2.7 -
September 2004 1.2 - Financial year to date 3.9 - General and admin
December 2004 12.6 29.6 September 2004 12.5 26.2 Financial year to
date 25.1 55.8 Cash operating costs December 2004 396.0 599.8
September 2004 390.5 577.1 Financial year to date 786.5 1,176.9
Plus: Production taxes December 2004 2.7 - September 2004 1.2 -
Financial year to date 3.9 - Royalties December 2004 - 28.9
September 2004 - 26.3 Financial year to date - 55.2 TOTAL CASH
COSTS(2) December 2004 398.7 628.7 September 2004 391.7 603.4
Financial year to date 790.4 1,232.1 Plus: Amortisation* December
2004 22.6 170.5 September 2004 21.6 158.1 Financial year to date
44.2 328.6 Rehabilitation December 2004 1.6 1.4 September 2004 1.6
1.3 Financial year to date 3.2 2.7 TOTAL PRODUCTION COSTS(3)
December 2004 422.9 800.6 September 2004 414.9 762.8 Financial year
to date 837.8 1,563.4 Gold sold - thousand ounces December 2004
157.6 389.9 September 2004 150.1 362.7 Financial year to date 307.7
752.6 TOTAL CASH COSTS December 2004 413 263 - US$/oz September
2004 410 262 Financial year to date 412 262 TOTAL PRODUCTION COSTS
December 2004 439 335 - US$/oz September 2004 435 331 Financial
year to date 436 333 International Operations (All figures are in
Rand millions unless otherwise stated) Ghana Tarkwa Damang
Operating costs(1) December 2004 226.4 91.0 September 2004 217.4
96.9 Financial year to date 443.8 187.9 Gold in process and
December 2004 5.6 (1.2) inventory change* September 2004 (20.6) 5.7
Financial year to date (15.0) 4.5 Less: Rehabilitation costs
December 2004 0.1 0.3 September 2004 0.2 0.3 Financial year to date
0.3 0.6 Production taxes December 2004 - - September 2004 - -
Financial year to date - - General and admin December 2004 14.7 2.9
September 2004 9.7 2.9 Financial year to date 24.4 5.8 Cash
operating costs December 2004 217.2 86.6 September 2004 186.9 99.4
Financial year to date 404.1 186.0 Plus: Production taxes December
2004 - - September 2004 - - Financial year to date - - Royalties
December 2004 13.4 5.3 September 2004 9.6 5.3 Financial year to
date 23.0 10.6 TOTAL CASH COSTS(2) December 2004 230.6 91.9
September 2004 196.5 104.7 Financial year to date 427.1 196.6 Plus:
Amortisation* December 2004 62.3 9.2 September 2004 42.7 10.2
Financial year to date 105.0 19.4 Rehabilitation December 2004 0.1
0.3 September 2004 0.2 0.3 Financial year to date 0.3 0.6 TOTAL
PRODUCTION COSTS(3) December 2004 293.0 101.4 September 2004 239.4
115.2 Financial year to date 532.4 216.6 Gold sold - thousand
ounces December 2004 167.6 66.5 September 2004 124.8 69.1 Financial
year to date 292.7 135.5 TOTAL CASH COSTS December 2004 224 226 -
US$/oz September 2004 248 238 Financial year to date 234 232 TOTAL
PRODUCTION COSTS December 2004 285 249 - US$/oz September 2004 302
262 Financial year to date 292 256 International Operations (All
figures are in Rand millions unless otherwise stated) Australia St
Ives Agnew Operating costs(1) December 2004 261.0 75.4 September
2004 290.1 67.8 Financial year to date 555.1 143.2 Gold in process
and December 2004 (31.0) 3.6 inventory change* September 2004
(54.9) 2.2 Financial year to date (85.9) 5.8 Less: Rehabilitation
costs December 2004 0.4 0.6 September 2004 0.4 0.4 Financial year
to date 0.8 1.0 Production taxes December 2004 - - September 2004 -
- Financial year to date - - General and admin December 2004 9.5
2.5 September 2004 10.6 3.0 Financial year to date 20.1 5.5 Cash
operating costs December 2004 220.1 75.9 September 2004 224.2 66.6
Financial year to date 444.3 142.5 Plus: Production taxes December
2004 - - September 2004 - - Financial year to date - - Royalties
December 2004 7.0 3.2 September 2004 8.5 2.9 Financial year to date
15.5 6.1 TOTAL CASH COSTS(2) December 2004 227.1 79.1 September
2004 232.7 69.5 Financial year to date 459.8 148.6 Plus:
Amortisation* December 2004 99.0 September 2004 105.2 Financial
year to date 204.2 Rehabilitation December 2004 1.0 September 2004
0.8 Financial year to date 1.8 TOTAL PRODUCTION COSTS(3) December
2004 406.2 September 2004 408.2 Financial year to date 814.4 Gold
sold - thousand ounces December 2004 106.6 49.0 September 2004
123.2 45.7 Financial year to date 229.8 94.7 TOTAL CASH COSTS
December 2004 348 264 - US$/oz September 2004 297 239 Financial
year to date 321 252 TOTAL PRODUCTION COSTS December 2004 427 -
US$/oz September 2004 380 Financial year to date 402 DEFINITIONS
Total cash costs and Total production costs are calculated in
accordance with the Gold Institute industry standard. (1) Operating
costs - All gold mining related costs before
amortisation/depreciation, changes in gold inventory, taxation and
exceptional items. (2) Total cash costs - Operating costs less
off-mine costs, including general and administration costs, as
detailed in the table above. (3) Total production costs - Total
cash costs plus amortisation/depreciation and rehabilitation
provisions, as detailed in the table above. * Adjusted for
amortisation/depreciation (non-cash item) excluded from gold in
process change. Average exchange rates are US$1 = R6.12 and US$1 =
R6.36 for the December 2004 and September 2004 quarters
respectively. Operating and Financial Results Total Mine SA Rand
Operations Operating Results Ore milled/treated (000 tons) December
2004 11,823 September 2004 11,043 Financial year to date 22,866
Yield (grams per ton) December 2004 2.9 September 2004 3.0
Financial year to date 3.0 Gold produced (kilograms) December 2004
34,705 September 2004 33,060 Financial year to date 67,765 Gold
sold (kilograms) December 2004 34,705 September 2004 33,060
Financial year to date 67,765 Gold price received (Rand per
kilogram) December 2004 84,872 September 2004 81,815 Financial year
to date 83,381 Total cash costs (Rand per kilogram) December 2004
64,921 September 2004 66,516 Financial year to date 65,700 Total
production costs (Rand per kilogram) December 2004 75,153 September
2004 76,682 Financial year to date 75,899 Operating costs (Rand per
ton) December 2004 198 September 2004 212 Financial year to date
205 Financial Results (Rand million) Revenue December 2004 2,945.5
September 2004 2,704.8 Financial year to date 5,650.3 Operating
costs December 2004 2,341.2 September 2004 2,335.9 Financial year
to date 4,677.1 Gold inventory change December 2004 (32.5)
September 2004 (87.1) Financial year to date (119.6) Operating
profit December 2004 636.8 September 2004 456.0 Financial year to
date 1,092.8 Amortisation of mining assets December 2004 353.3
September 2004 344.6 Financial year to date 697.9 Net operating
profit December 2004 283.5 September 2004 111.4 Financial year to
date 394.9 Other income/(expenses) December 2004 105.4 September
2004 88.6 Financial year to date 194.0 Profit before taxation
December 2004 388.9 September 2004 200.0 Financial year to date
588.9 Mining and income taxation December 2004 125.5 September 2004
66.6 Financial year to date 192.1 - Normal taxation December 2004
60.3 September 2004 37.3 Financial year to date 97.6 - Deferred
taxation December 2004 65.2 September 2004 29.3 Financial year to
date 94.5 Net profit December 2004 263.4 September 2004 133.4
Financial year to date 396.8 Capital expenditure (Rand million)
December 2004 499.0 September 2004 722.1 Financial year to date
1,221.1 Planned for next six months to June 2005 897.7 SA
Operations SA Rand Total Driefontein Operating Results Ore
milled/treated (000 tons) December 2004 4,013 1,647 September 2004
3,979 1,544 Financial year to date 7,992 3,191 Yield (grams per
ton) December 2004 5.6 5.4 September 2004 5.5 5.7 Financial year to
date 5.6 5.6 Gold produced (kilograms) December 2004 22,577 8,949
September 2004 21,779 8,818 Financial year to date 44,356 17,767
Gold sold (kilograms) December 2004 22,577 8,949 September 2004
21,779 8,818 Financial year to date 44,356 17,767 Gold price
received (Rand per kilogram) December 2004 84,657 84,926 September
2004 81,914 81,731 Financial year to date 83,310 83,340 Total cash
costs (Rand per kilogram) December 2004 71,949 67,114 September
2004 73,263 67,419 Financial year to date 72,594 67,265 Total
production costs (Rand per kilogram) December 2004 80,064 73,952
September 2004 81,377 74,359 Financial year to date 80,708 74,154
Operating costs (Rand per ton) December 2004 420 380 September 2004
418 403 Financial year to date 419 391 Financial Results (Rand
million) Revenue December 2004 1,911.3 760.0 September 2004 1,784.0
720.7 Financial year to date 3,695.3 1,480.7 Operating costs
December 2004 1,687.4 625.1 September 2004 1,663.7 621.9 Financial
year to date 3,351.1 1,247.0 Gold inventory change December 2004 -
- September 2004 - - Financial year to date - - Operating profit
December 2004 223.9 134.9 September 2004 120.3 98.8 Financial year
to date 344.2 233.7 Amortisation of mining assets December 2004
173.3 58.4 September 2004 167.0 58.4 Financial year to date 340.3
116.8 Net operating profit December 2004 50.6 76.5 September 2004
(46.7) 40.4 Financial year to date 3.9 116.9 Other
income/(expenses) December 2004 72.4 24.4 September 2004 81.2 26.4
Financial year to date 153.6 50.8 Profit before taxation December
2004 123.0 100.9 September 2004 34.5 66.8 Financial year to date
157.5 167.7 Mining and income taxation December 2004 11.8 10.9
September 2004 (5.0) 16.9 Financial year to date 6.8 27.8 - Normal
taxation December 2004 - - September 2004 - - Financial year to
date - - - Deferred taxation December 2004 11.8 10.9 September 2004
(5.0) 16.9 Financial year to date 6.8 27.8 Net profit December 2004
111.2 90.0 September 2004 39.5 49.9 Financial year to date 150.7
139.9 Capital expenditure (Rand million) December 2004 163.1 41.7
September 2004 147.8 30.7 Financial year to date 310.9 72.4 Planned
for next six months to June 2005 393.3 131.2 SA Operations SA Rand
Kloof Beatrix Operating Results Ore milled/treated (000 tons)
December 2004 1,275 1,091 September 2004 1,259 1,176 Financial year
to date 2,534 2,267 Yield (grams per ton) December 2004 6.8 4.5
September 2004 6.6 4.0 Financial year to date 6.7 4.2 Gold produced
(kilograms) December 2004 8,727 4,901 September 2004 8,293 4,668
Financial year to date 17,020 9,569 Gold sold (kilograms) December
2004 8,727 4,901 September 2004 8,293 4,668 Financial year to date
17,020 9,569 Gold price received (Rand per kilogram) December 2004
84,531 84,391 September 2004 81,744 82,562 Financial year to date
83,173 83,499 Total cash costs (Rand per kilogram) December 2004
71,628 81,351 September 2004 73,484 83,912 Financial year to date
72,532 82,600 Total production costs (Rand per kilogram) December
2004 82,835 86,289 September 2004 84,614 88,882 Financial year to
date 83,702 87,554 Operating costs (Rand per ton) December 2004 509
378 September 2004 505 345 Financial year to date 507 361 Financial
Results (Rand million) Revenue December 2004 737.7 413.6 September
2004 677.9 385.4 Financial year to date 1,415.6 799.0 Operating
costs December 2004 649.4 412.9 September 2004 636.0 405.8
Financial year to date 1,285.4 818.7 Gold inventory change December
2004 - - September 2004 - - Financial year to date - - Operating
profit December 2004 88.3 0.7 September 2004 41.9 (20.4) Financial
year to date 130.2 (19.7) Amortisation of mining assets December
2004 92.3 22.6 September 2004 87.0 21.6 Financial year to date
179.3 44.2 Net operating profit December 2004 (4.0) (21.9)
September 2004 (45.1) (42.0) Financial year to date (49.1) (63.9)
Other income/(expenses) December 2004 28.4 19.6 September 2004 29.3
25.5 Financial year to date 57.7 45.1 Profit before taxation
December 2004 24.4 (2.3) September 2004 (15.8) (16.5) Financial
year to date 8.6 (18.8) Mining and income taxation December 2004
1.4 (0.5) September 2004 (15.7) (6.2) Financial year to date (14.3)
(6.7) - Normal taxation December 2004 - - September 2004 - -
Financial year to date - - - Deferred taxation December 2004 1.4
(0.5) September 2004 (15.7) (6.2) Financial year to date (14.3)
(6.7) Net profit December 2004 23.0 (1.8) September 2004 (0.1)
(10.3) Financial year to date 22.9 (12.1) Capital expenditure (Rand
million) December 2004 63.2 58.2 September 2004 58.5 58.6 Financial
year to date 121.7 116.8 Planned for next six months to June 2005
100.5 161.6 PRNewswire-FirstCall -- Jan. 31 SECOND AND FINAL ADD --
OPERATING AND FINANCIAL AND TABLES -- TO FOLLOW DATASOURCE: Gold
Fields Limited
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