Gold Fields Limited Results for the Quarter and Year Ended 30 June
2004 -Reviewed preliminary results- JOHANNESBURG, South Africa,
July 29 /PRNewswire-FirstCall/ -- � Gold Fields Limited (NYSE &
JSE: GFI) today announced June 2004 quarter headline earnings of
R129 million (26 cents per share) compared with headline earnings
of R221 million (45 cents per share) in the March 2004 quarter and
R494 million (104 cents per share) for the June quarter of 2003.
The reduction in earnings is largely gold price and exchange rate
related and masks a solid operating performance. In US dollar terms
the June 2004 quarter headline earnings were US$20 million (US$0.04
per share) compared with US$32 million (US$0.07 per share) in the
March 2004 quarter and US$64 million (US$0.14 per share) for the
June quarter of 2003. June 2004 quarter salient features:
*Attributable gold production increased to 1,042,000 ounces; *Total
cash costs decreased 2 per cent to R66,218 per kilogram (US$312 per
ounce); *Operating profit down 17 per cent to R545 million (US$83
million), exclusively due to a 6 per cent reduction in the rand
gold price to R83,731 per kilogram (US$395 per ounce); *Organic
growth projects on track in Australia and Ghana; *Write-down of
R426 million (US$62 million) at Beatrix 4 shaft. Year ended June
2004 salient features: *Attributable gold production of 4,158,000
ounces; *Total cash costs R67,075 per kilogram (US$302 per ounce) 9
per cent up on previous year; *Mvela transaction successfully
concluded; *Sale of Driefontein's block 1C11 to AngloGold for R315
million, yielding a profit of R240 million net of taxation; *Strong
financial position provides platform for growth; *Offshore organic
growth projects announced. Final dividend of 40 SA cents per share,
giving a total dividend of 80 SA cents per share for the year. Ian
Cockerill, Chief Executive Officer of Gold Fields said: "While
earnings were affected by the continued strengthening of the South
African currency during the quarter, Gold Fields again had a strong
operational performance overall. Despite the strategic
repositioning of the South African operations over the past nine
months, to counterbalance the strong rand, having had the desired
effect, further interventions are being put in place in
anticipation of a rand per kilogram price of below R80,000 per
kilogram. Overall, Gold Fields is in a good position with
significant progress being made, in particular, with the
international growth projects in Ghana, Australia, Peru and
Finland. Furthermore, the exploration programme has during the
quarter delivered promising results with significant improvements
in the prospect of several projects. During the quarter Gold Fields
sent a technical team to Russia to conduct visits at the Norilsk
gold operations with a view to exploring the potential for
co-operation with regards to our respective gold assets. The
process of evaluating the results of this visit are underway, and
initial results are encouraging enough to continue this process."
SA Rand Salient features Year ended Quarter June June June March
June 2003 2004 2003 2004 2004 Gold produced* kg 134,813 129,329
32,380 32,131 32,419 Total cash costs R/kg 61,766 67,075 63,369
67,528 66,218 Tons milled 000 42,988 46,028 10,925 11,815 11,076
Revenue R/kg 97,060 85,905 86,751 88,887 83,731 Operating costs
R/ton 213 204 204 199 213 Operating profit Rm 4,741 2,315 717 656
545 Net earnings Rm 2,953 768 789 255 (186) SA c.p.s. 626 158 167
51 (39) Headline earnings Rm 2,393 763 494 221 129 SA c.p.s. 507
157 104 45 26 Net earnings excluding gains and losses on financial
instruments and foreign debt net of cash and exceptional items Rm
2,011 587 226 238 102 SA c.p.s. 426 121 48 48 21 US Dollars Salient
features Quarter Year ended June March June June June 2004 2004
2003 2004 2003 Gold produced* oz (000) 1,042 1,033 1,041 4,158
4,334 Total cash costs $/oz 312 309 255 302 212 Tons milled 000
11,076 11,815 10,925 46,028 42,988 Revenue $/oz 395 407 349 387 333
Operating costs $/ton 32 29 26 30 23 Operating profit $m 83 96 100
336 523 Net earnings $m (25) 38 98 111 326 US c.p.s. (5) 7 21 23 69
Headline earnings $m 20 33 64 111 264 US c.p.s. 4 7 14 23 56 Net
earnings excluding gains and losses on financial instruments and
foreign debt net of cash and exceptional items $m 16 34 34 85 222
US c.p.s. 4 7 8 18 47 *Attributable - All companies wholly owned
except for Ghana (71.1%). STOCK DATA Number of shares in issue - at
end June 2004 491,480,690 - average for the quarter 491,431,716
Free Float 100% ADR Ratio 1:1 Bloomberg / Reuters GFISJ / GFLJ.J
JSE SECURITIES EXCHANGE SOUTH AFRICA � (GFI) Range - Quarter
ZAR85.00 � ZAR65.02 Average Volume - Quarter 1,398,900 shares / day
NYSE � (GFI) Range - Quarter US$13.40 � US$9.77 Average Volume -
Quarter 1,188,600 shares / day INVESTOR RELATIONS Europe &
South Africa Willie Jacobsz Nerina Bodasing Tel : +27 11 644-2460
Tel : +27 11 644-2630 Fax: +27 11 484-0639 Fax : +27 11 484-0639
E-mail: 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/ Health and Safety During the quarter
the lost day injury frequency rate at the operations improved from
13.8 to 11.9, the serious injury frequency rate improved from 6.5
to 5.9 and the fatal injury frequency rate unfortunately regressed
from 0.15 to 0.26. While the improvement in total safety
performance is commendable, the deterioration in the fatal injury
frequency rate is a source of concern. Health and safety of our
workforce is the most important aspect of the business and
continued focus will be given to initiatives aimed at eradicating
injuries and fatalities. Beatrix achieved two million fatality free
shifts during the quarter and Beatrix 1,2 and 3 shafts in aggregate
achieved one million underground fatality free shifts. In addition,
Damang and the Australian operations continue to be fatality free,
with Damang having recorded only one lost day injury in sixteen
months. Financial Review Quarter ended 30 June 2004 compared with
quarter ended 31 March 2004 REVENUE Attributable gold production
increased marginally to 1.042 million ounces for the June 2004
quarter compared with 1.033 million ounces achieved in the March
2004 quarter. However, notwithstanding the higher production in the
June quarter, revenue at R2,869 million (US$434 million) was 5 per
cent lower than the March quarter's R3,028 million (US$444
million). This decrease was due to a 6 per cent lower rand gold
price. The gold price achieved for the June quarter was R83,731 per
kilogram (US$395 per ounce), compared with R88,887 per kilogram
(US$407 per ounce) in the March quarter. Apart from the impact of a
lower dollar gold price, the rand gold price was also affected by a
strengthening of the rand against the US dollar from an average of
R6.79 to R6.60 quarter on quarter. OPERATING COSTS Operating costs
for the June quarter at R2,364 million (US$357 million) increased
0.5 per cent compared with the March quarter's R2,351 million
(US$345 million) evidencing continued good cost control. Although
costs at the international operations of R711 million were
virtually unchanged from the R707 million reported in the March
quarter, a cost increase at St Ives associated with additional
mining volume was offset by the impact of translating costs at the
international operations into South African rand at a stronger
local exchange rate. The increased mining volume at St Ives is
reflected in a credit to gold in process of R40 million (US$6
million) compared with a gold in process charge in the March
quarter of R22 million (US$3 million), which was due to a gold in
process release at the Australian operations in the previous
quarter. OPERATING PROFIT MARGIN The net effect of the lower
revenue, despite lower costs after taking account of gold in
process movements, was an operating profit of R545 million (US$83
million), 17 per cent lower than the R656 million (US$96 million)
achieved in the March quarter. The Group margin decreased to 19 per
cent from 22 per cent in the March quarter and the South African
margin decreased from 14 per cent to 9 per cent. This reduction in
margin was virtually all due to the lower price achieved. The
margin at the international operations increased to 36 per cent
from 34 per cent in the March quarter. AMORTISATION Amortisation
for the June quarter at R332 million (US$50 million) was 12 per
cent higher than the March quarter's R298 million (US$44 million).
This increase was due to increased mining volumes at the
international operations, which carries a higher rate of
amortisation than the local operations. Amortisation at the South
African operations was virtually unchanged. OTHER INCOME Net
interest and investment income at R28 million (US$4 million)
increased from negative R4 million (US$1 million negative) quarter
on quarter. This was due to interest earned on the net Mvela cash
receipts of R3.8 billion received on 17 March, partly offset by the
interest payable on the Mvela debt arising from this transaction.
Gains on foreign debt and cash amounted to R76 million (US$11
million), compared with a loss of R34 million (US$5 million
negative) in the March quarter. Included in this income is an
accounting exchange gain of R86 million (US$12 million) on the
settlement of an offshore inter-company loan with no attendant cash
flow implications, partly offset by an exchange loss on offshore
funds held in euros of R10 million (US$1 million). Euro 176 million
is currently held offshore and arises from the capital raising
undertaken in November 2003. The loss on the euros is due to the
strengthening of the US dollar from 1.2270 euros to the US dollar
at the start of the quarter to 1.2175 at the end of June. A loss on
financial instruments of R71 million (US$10 million) was incurred,
which includes a loss on rand/US dollar forward cover of R19
million, and a marked to market loss on an interest rate swap of
R52 million (US$8 million). The interest rate swap was established
in relation to the loan from Mvela Gold, a wholly owned subsidiary
of Mvela Resources and converted a fixed interest rate exposure to
a floating rate. This instrument was established as short-term
rates are significantly lower than long-term rates and the
resultant upward sloping yield curve is expected to prevail for
some time. Despite the marked to market loss associated with a
change in the profile of the five year yield curve, this strategy
is yielding positive results with an R18 million cash benefit in
the period to end June 2004 and a R12 million cash benefit locked
in for the three month period to September 2004. More detail on
these financial instruments is given on page 11 of this report.
Other income reduced from a positive R26 million (US$4 million) to
a negative R31 million (US$4 million negative) in the June quarter.
This change was mainly due to gains realised on the exchange of
exploration joint venture interests for equity in the previous
quarter along with positive adjustments to the Group's
post-retirement health care provisions in that period, together
with costs incurred during the current quarter associated with
projects aimed at optimising stores consumption and procurement
practices in the Group and restructuring costs in the Group's
Shared Services division. To this end, an e-auction on conveyor
belting used as a pilot study has already resulted in an annual
saving of R10 million, which translates to a reduction of some 40
per cent. Exploration expenditure increased from R44 million (US$7
million) to R62 million (US$9 million) in the June quarter in line
with the planned increase in activity, mainly in West Africa and
Latin America. The exceptional loss of R432 million (US$62 million)
is primarily as a result of the impairment at Beatrix 4 shaft
(formerly Oryx) of R426 million (US$62 million) being R315 million
(US$45 million) after the associated taxation effect. The post
write-down carrying value of Beatrix 4 shaft is R75 million. Last
quarter's exceptional gain amounted to R21 million (US$3 million)
and included profit on the sale of the remaining shares in Harmony
and Committee Bay, partly offset by the write-off of certain
mineral rights. TAXATION A taxation credit of R124 million (US$18
million) was realised in the June quarter compared with a charge of
R64 million (US$9 million) in the March quarter. This is mainly due
to a deferred tax credit on the impairment at Beatrix of R111
million (US$17 million) and a tax credit of R26 million on the loss
on financial instruments. Further deferred tax credits of R76
million were generated due to increases in unredeemed capital
expenditure balances at all of the South African operations. This
was partially offset by a R30 million (US$5 million) deferred tax
charge as a consequence of the Mvela transaction. EARNINGS After
accounting for minority interests, a loss of R186 million (US$25
million) was incurred or negative 39 SA cents per share (US$0.05
per share negative), compared with earnings of R255 million (US$38
million) or 51 SA cents per share (US$0.07 per share) in the
previous quarter. Headline earnings i.e. earnings less the after
tax effect of asset sales, impairments and the sale of investments,
amounted to R129 million (US$20 million) or 26 SA cents per share
(US$0.04 per share) compared with R221 million (US$32 million) or
45 SA cents per share (US$0.07 per share) last quarter. The main
reason for this decrease was the fall in net operating profit
associated with lower achieved prices received in the June quarter.
Earnings, excluding exceptional items as well as net gains on
financial instruments and foreign debt net of cash after taxation,
amounted to R102 million (US$16 million) or 21 SA cents per share
(US$0.04 per share) compared with R238 million (US$34 million) or
48 SA cents per share (US$0.07 per share) achieved last quarter.
CASH FLOW Cash flow from operating activities for the quarter was
R436 million (US$66 million), compared with operating cash flow in
the March quarter of R528 million (US$77 million). The decrease
reflects the decline in operating profit. Capital expenditure was
R938 million (US$139 million) compared with R749 million (US$109
million) in the March quarter. The increase is mainly due to
increased expenditure on organic growth projects in Ghana and
Australia. R185 million (US$33 million) was expended at the South
African operations. This is an increase of R32 million (US$5
million) over the previous quarter, the majority at Kloof 4 shaft.
The Australian operations incurred capital expenditure of R308
million (A$83 million). The mill project at St Ives accounted for
R224 million (A$45 million) of this expenditure as compared to R91
million (A$19 million) in the March quarter. The balance on this
project, the majority of which will be spent during the September
quarter, amounts to A$61 million. At the Ghanaian operations,
capital expenditure amounted to R401 million (US$67 million). R361
million (US$58 million) was spent on the new mill and on the
project to convert from contract mining to owner mining. This
compares with R263 million (US$43 million) in the previous quarter.
The balance on these projects, the majority of which will be spent
in the next two quarters, amounts to US$30 million. Major projects
are still forecast to be in line with approved votes except for a
possible small over expenditure on the mill project at Tarkwa,
which will depend on currency moves over the next quarter. Net cash
outflow for the quarter was R497 million (US$74 million). The cash
balance at the end of the June quarter was R4,135 million (US$656
million) compared with R4,701 million (US$721 million) at the end
of the March quarter. Detailed and Operational Review Group
Overview Attributable gold production for the June 2004 quarter
increased marginally to 1,042,000 ounces when compared with the
March quarter. Attributable production from the international
operations was virtually unchanged at 342,000 ounces, which is
approximately one third of the Group's total attributable
production. Production from the Australian operations increased 6
per cent to 196,300 ounces this quarter due to increased volumes
from St Ives. Operating profit from the Australian operations
increased 34 per cent to R159 million (A$33 million, US$24 million)
for the quarter, primarily as a result of the increased production
and increased gold price. The gold price in Australian dollars
increased 4 per cent from A$536 per ounce to A$556 per ounce
quarter on quarter. The Ghanaian operations showed a 5 per cent
decrease in attributable gold production to 146,200 ounces, partly
due to reduced ore volumes associated with lack of flexibility in
the pits exacerbated by poor equipment availability. Ghana
contributed operating profit of R224 million (US$34 million), a 15
per cent decrease on the previous quarter's operating profit. The
reduced operating profit is due to the decrease in gold production
and the cost of accelerated stripping at Tarkwa. The international
operations contributed R383 million (US$58 million) of the total
operating profit of R545 million (US$83 million) or 70 per cent,
compared with R382 million (US$56 million) of the total operating
profit of R656 million (US$96 million) or 58 per cent last quarter.
At the South African operations, production was 699,700 ounces,
similar to the previous quarter. The decrease at Beatrix related to
lost days due to the elections and the Easter break, was offset by
a 3 per cent increase in output at Kloof due to an increase in
underground tonnage. Operating profit at the South African
operations decreased from R274 million (US$40 million) to R163
million (US$25 million) mainly as a consequence of the lower gold
price. Group ore milled decreased from 11.82 million tons to 11.08
million tons due to an 11 per cent decrease in surface tons, mainly
at Beatrix, Tarkwa and St Ives. The overall yield increased from
2.9 grams per ton in the March quarter to 3.1 grams per ton in the
current quarter. Total cash costs in rand terms decreased from
R67,528 per kilogram to R66,218 per kilogram quarter on quarter
mainly as a result of the increased production. In US dollar terms,
total cash costs were virtually unchanged at US$312 per ounce
compared with US$309 per ounce. Operating cost per ton at R213
increased from R199 last quarter due to the lower surface tonnage.
South African Operations During the September 2003 quarter
management took a view that the South African currency would remain
stronger for longer. As a result it was decided to reposition the
South African operations. This was presented as reverting from the
"Wal-Mart" strategy (more volume at lower grade) to the "SAKS 5th
Avenue" strategy (less volume at higher grade). To support this
switch in strategy, management introduced an initiative called
Project 500, which, in turn, was split into two sub-projects
called: Project 400 and Project 100. Project 400 aims to optimise
revenue such that an additional R400 million is generated per
annum. The aim is to improve the quality and quantity of our
outputs by replacing surface tonnage to the plant with increased
tonnage from underground and ensuring output of a better quality,
by mining the higher grades at marginally reduced volume. This
strategy has started to deliver results as was evidenced in the
March quarter at Kloof and Driefontein, which both reported
increased underground grades, and has continued into this quarter.
It should be emphasised that the operations are producing in line
with the proven reserve grades for life of mine. Naturally,
paylimits have to change to reflect current earnings and despite
some ill-informed market commentary, Gold Fields continues to
prudently manage its ore reserves and is not high grading as the
table below clearly shows. Quarter ended Sep Dec Mar Jun 2003 2003
2004 2004 Driefontein: Life of mine head grade as per the 2003
annual report 8.7 8.7 8.7 8.7 Life of mine head grade adjusted for
estimated metallurgical recoveries 8.4 8.4 8.4 8.4 Driefontein
(underground yields achieved) 8.1 7.5 8.6 8.5 Kloof: Life of mine
head grade as per the 2003 annual report 9.8 9.8 9.8 9.8 Life of
mine head grade adjusted for estimated metallurgical recoveries 9.5
9.5 9.5 9.5 Kloof (underground yields achieved) 8.1 8.6 10.0 9.5
Beatrix: Life of mine head grade as per the 2003 annual report 5.1
5.1 5.1 5.1 Life of mine head grade adjusted for estimated
metallurgical recoveries 4.9 4.9 4.9 4.9 Beatrix (underground
yields achieved) 4.4 4.7 4.5 4.7 Project 100 is designed to save a
minimum of R100 million a year from improved standards and norms by
reducing wastage and making sure that the mines use only what is
required for a successful blast. Having carefully examined the
prospects for Project 100 it soon became clear that initial
estimates of R100 million savings were conservative. Consequently,
the bar has been raised and Gold Fields is also aiming to achieve
R200 million to R300 million in savings per annum from improved
procurement practices in the medium term. The group spends in
excess of R3 billion on materials and services, of which R1.5
billion is spent on materials used on the mines and more than R1.4
billion is spent on total services provided. The aim is to reduce
procurement spend by 7 to 10 per cent by improving efficiencies,
leveraging off Group buying power and adopting strategic sourcing
techniques. Forming business partnerships with suppliers, entering
into risk reward type sharing arrangements, increasing supply
coverage, as well as rationalising vendors without compromising on
quality, would be some of the aspects considered in this regard.
Over the past 15 months Gold Fields has reduced total stores
inventory by some 30 per cent. This was achieved by combining all
the stores into one on the West Wits. This rationalisation of
stores has resulted in a reduction in line items from 16,000 to
3,000. Vendor price increases have been controlled at between one
and two percent below PPI and there has been a marked reduction in
vendors, from 3,000 to the current 870. Project 500 will reinstate
more respectable margins at current prices and aims to achieve the
following at Driefontein, Kloof and Beatrix: Driefontein * Mine in
a range of between 1,900 and 2,100 centimetre grams per ton
("cmg/t"). This translates to an estimated underground recovered
yield of above 8.0 grams per ton. * Implement restructuring and
cost saving measures of R2.0 million per month. * Maintain the
production profile at + 1 million ounces per annum. Kloof * Mine in
a range of between 2,200 and 2,350 cmg/t. This translates to an
estimated underground recovered yield of above 9.0 grams per ton. *
Implement restructuring and cost saving measures of R2.0 million
per month. * Maintain the production profile at + 1 million ounces
per annum. Beatrix * Mine in a range of between 1,000 and 1,100
cmg/t at number 1, 2 and 3 shafts and in a range of between 1,400
and 1,500 cmg/t at number 4 shaft. This translates to an estimated
combined underground recovered yield of 4.8 grams per ton. *
Implement restructuring and cost saving measures of R1.5 million
per month. * Maintain the production profile of +600 thousand
ounces per annum. A full explanation of project 500 can also be
found on the Gold Fields website � http://www.goldfields.co.za/
General The South African operations have, over the past 48 months
undergone extensive restructuring and renewal to reposition for the
future. On each of our operations, we have invested significantly
in the construction and development of new long life shafts. At
Driefontein, capital has been invested into 5 east and 1 tertiary
shafts; at Kloof the new 4 shaft; and Beatrix the new 3 shaft. In
addition, our metallurgical plants have been upgraded.
Environmental conditions at all shafts have and are being improved
through the on going lowering of temperatures, and infrastructure
bottlenecks are being resolved. Over this period Gold Fields has
also invested significantly in the development of its ore bodies,
with all the key long life shafts now having an average of 20
months of mineable developed ore reserves in place. Occupational
health care services are made available by Gold Fields employees
from its existing facilities. There is a risk that the cost of
providing such services could increase in the future depending upon
changes in the nature of underlying legislation and the profile of
employees. This increased cost, should it transpire, is currently
indeterminate. The Group is monitoring developments in this regard.
DRIEFONTEIN June March 2004 2004 Gold produced - 000'ozs 290.3
289.6 Yield - underground - g/t 8.5 8.6 - overall - g/t 5.6 5.4
Total cash costs - R/kg 67,372 67,607 - US$/oz 317 310 Production
at Driefontein at 290,300 ounces was similar to the previous
quarter. Underground tonnage increased 11 per cent from 838,000
tons to 927,000 tons. This was due to the impact of the Christmas
break last quarter. The underground yield achieved was 8.5 grams
per ton, which was in line with the previous quarter. Surface
tonnage was 15 per cent lower at 695,000 tons due to lower volumes
from surface clean up, in line with our forecast. Surface yields
decreased from 2.2 grams per ton to 1.7 grams per ton for the
quarter following the conclusion of processing of high grade
material and plant clean up. Operating costs were virtually
unchanged at R637 million (US$96 million) despite the increase in
underground volumes. Total cash costs in rand terms were marginally
below the March quarter at R67,372 per kilogram and increased 2 per
cent in US dollar terms to US$317 per ounce due to the stronger
rand. Operating profit was down from R158 million (US$23 million)
in the March quarter to R121 million (US$18 million) in the June
quarter as a result of the lower gold price received. Capital
expenditure amounted to R40 million (US$7 million) compared with
R29 million (US$6 million) in the March quarter. As a result of the
lower gold price and reduced earnings, capital expenditure
continues to be reprioritised and non crucial items deferred. Gold
output in the September quarter is expected to be marginally lower
than the June quarter. This is due to increased seismicity in July
at 5 east shaft, lower flexibility resulting from the stoppage of
marginal areas and the conclusion of plant clean up. Improvements
to ventilation will enable increased face length going forward,
resulting in improved flexibility. This should result in a steady
production performance over the remainder of the year. Costs will
increase by some 3 per cent due to the annual wage increase,
effective from July. KLOOF June March 2004 2004 Gold produced -
000'ozs 259.2 250.9 Yield - underground - g/t 9.5 10.0 - overall -
g/t 6.6 6.4 Total cash costs - R/kg 74,191 75,920 - US$/oz 350 348
Gold production at Kloof increased 3 per cent to 259,200 ounces in
the June quarter from 250,900 ounces in the March quarter.
Underground tonnage increased 10 per cent to 818,000 tons this
quarter from 744,000 tons in the March quarter, which was
negatively affected by the extended Christmas break. Surface tons
decreased from 483,000 tons to 407,000 tons as a result of the
increased underground volumes. The underground yield has as planned
decreased from 10.0 grams per ton last quarter to 9.5 grams per ton
this quarter, with the combined yield increasing from 6.4 grams per
ton to 6.6 grams per ton, due to the improved mix from the higher
grade underground tonnage. Operating costs at R621 million (US$94
million) for the quarter were virtually unchanged when compared
with the previous quarter's costs of R617 million (US$91 million).
Total cash costs at R74,191 per kilogram were 2 per cent lower than
the previous quarter's R75,920 per kilogram. In US dollar terms
total cash costs were virtually unchanged at US$350 per ounce.
Operating profit decreased by one third to R49 million (US$7
million) compared to R75 million (US$11 million) the previous
quarter due to the lower gold price received this quarter. Capital
expenditure increased from R57 million (US$10 million) in the March
quarter to R76 million (US$14 million) in the June quarter. The
majority of this expenditure was on reprioritising and accelerating
the capital at 4 shaft. The gold production outlook for the
September quarter is expected to be slightly up on the June
quarter, with operating costs forecast to increase some 3 per cent
due to the annual wage increases. BEATRIX June March 2004 2004 Gold
produced - 000'ozs 150.2 154.7 Yield - underground - g/t 4.7 4.5 -
overall - g/t 3.8 3.3 Total cash costs - R/kg 81,978 78,143 -
US$/oz 386 358 Gold production at Beatrix decreased 3 per cent from
154,700 ounces in the March quarter to 150,200 ounces in the June
quarter. Underground ore was down 3 per cent from 1,003,000 tons to
968,000 tons due mainly to the impact of the public holidays over
Easter, the election break and a one day work stoppage because of
the implementation of an internal restructuring programme to reduce
costs. Underground yields increased marginally to 4.7 grams per
ton. In particular, 2 shaft and 4 shaft have seen positive volume
and grade improvements and are well positioned for the coming
quarter. The stoping and development build up at 3 shaft, as well
as accompanying exploration drilling is progressing well and
results are in line with forecast. Beatrix experienced lower mine
call factors (MCF) during the past two quarters and specific focus
has been applied towards improved quality of sweepings, water usage
and fragmentation. Surface tons decreased significantly from
450,000 tons to 254,000 tons as last quarter included surface tons
milled over the Christmas break. The surface yield remained at the
March quarter level of 0.6 grams per ton and this is the forecast
going forward. Operating costs increased from R390 million (US$57
million) to R395 million (US$60 million) and total cash costs
increased 5 per cent from R78,143 per kilogram (US$358 per ounce)
to R81,978 per kilogram (US$386 per ounce) due to the lower gold
production. An operating loss of R7 million (US$1 million) was
incurred due to the lower production and the previously discussed
lower gold price, as compared with a profit of R40 million (US$6
million) in the March quarter. Beatrix 4 shaft (formerly Oryx) was
impaired R426 million (US$62 million) during the quarter, with the
after tax effect amounting to R315 million (US$45 million). The
impairment was based on a calculated net present value, using a
gold price of R90,000 per kilogram at a real discount rate of 5 per
cent. The carrying value of Beatrix 4 shaft after the write-down is
R75 million. Capital expenditure amounted to R69 million (US$12
million), similar to the March quarter. The majority of this
expenditure was spent on development at 3 shaft and the Sand River
block adjacent to 4 shaft. Gold production will be flat for the
September quarter due to cessation of toll milling at Joel, who
have given notice that they will stop our toll treatment at the end
of July 2004. Costs will be affected by the July wage increase
which has an impact of approximately 3 per cent on total working
costs. International Operations Ghana TARKWA June March 2004 2004
Gold produced - 000'ozs 123.1 137.4 Total cash costs - US$/oz 251
237 Tarkwa's June quarter gold production was disappointing at
123,100 ounces, down 10 per cent on the previous quarter, contrary
to expectations reported previously. This drop in gold production
was primarily due to a reduction in ore mining volumes and thus
recoverable ounces that were stacked on the leach pads,
particularly in the April and May months. Mined grade was stable
quarter on quarter at 1.44 gram per ton. The drop in ore mining
rate was caused by a lack of flexibility in the open pits, in
particular the availability of ores in the high grade pits,
compounded by mining equipment availability. The former problem is
being resolved with additional waste stripping that was pursued
during the quarter. The strip ratio in the June quarter was 3.4
against 2.7 in the March quarter. The equipment availability will
clearly be addressed by the conversion to owner mining and the
associated commissioning of a new mining fleet that was largely
complete by month end (refer later in this report for details of
the Owner Mining Project). By quarter end the mining operations had
improved significantly and have continued to do so to the time of
reporting. The increased flexibility and build up in volumes from
the new mining fleet resulted in increased tonnage through the
crushing plants towards the end of the quarter at higher grades,
but too late to recover the gold from the heaps by quarter end.
This resulted in an increase in gold in process of 8,255 ounces.
Operating costs at US$31 million (R219 million), including gold in
process adjustments, were slightly lower than the previous quarter
despite total mining volumes being some 2.3 million tons ahead of
that mined in the previous quarter, at 18.5 million tons. Operating
costs were US$8.63 per ton against US$8.06 per ton in the March
quarter, primarily reflecting the increase in stripping ratio. With
the head grade stable, the higher strip ratio and lower gold
volumes translated into a 6 per cent increase in total cash costs
to US$251 per ounce. The net result was a drop in operating profit
from US$23 million (R159 million) to US$18 million (R116 million).
The majority of the increase in capital expenditure, from US$45
million (R281 million) to US$65 million (R392 million) in the June
quarter reflects expenditure on the major projects i.e. the mill
construction and owner mining projects. Refer to Tarkwa Expansion
Project commentary. Gold production is expected to increase in the
September quarter, closer to levels seen in the March quarter,
subject to gold in process movements, which remain difficult to
predict. Operating costs in the September quarter are expected to
be lower than the current period as a result of the transition to
owner mining, reaching completion in this period DAMANG June March
2004 2004 Gold produced - 000'ozs 82.5 78.1 Total cash costs -
US$/oz 205 219 Gold production for the quarter increased to 82,500
ounces compared to 78,100 ounces in the March quarter. This
reflects a 7 per cent increase in mill throughput to 1,391,000 tons
this quarter, a record performance, with the head grade stable at
2.1 grams per ton. The March quarter included a maintenance shut
down. The tons mined decreased by 9 per cent to 3.6 million tons,
with the stripping ratio reducing from 1.82 to 1.71. Operating
costs quarter on quarter including gold in process adjustments were
flat at US$17 million (R113 million), with the reduction in mining
volumes and costs offset by the increase in milling volumes and
costs. Unit costs per ton treated therefore decreased to US$12.24
per ton from US$13.05 per ton in the March quarter. Total cash
costs however reduced from US$219 per ounce to US$205 per ounce
quarter on quarter, as a result of the increase in gold production.
The net result was an increase in operating profit to US$16 million
(R107 million) from US$15 million (R104 million) in the previous
quarter. Capital expenditure of US$1.5 million (R9 million) was
spent during the quarter, mainly on drilling at Abosso Deeps and
the Damang Extension Project. Refer Damang Extension Project
commentary. Gold production is expected to be considerably lower in
the September quarter with the expected reduction in high grade
sources of ore at Damang, particularly the Damang pit, which was
due for depletion in the middle of the F2005 year. There will be a
concomitant effect on unit costs. Australia ST IVES June March 2004
2004 Gold produced - 000'ozs 143.6 131.8 Total cash costs - A$/oz
422 442 - US$/oz 304 338 Gold production for the quarter increased
9 per cent to 143,600 ounces when compared to 131,800 ounces
produced in the March quarter. This increase largely reflects a
substantial improvement in head grades to the St Ives mill and toll
treatment facility. (The March quarter included a maintenance
shutdown at the mill). The improvement in grade reflects resolution
of the grade recovery problems reported in the March quarter in the
Mars open pit but also the ongoing increase in the volume of high
grade ores from the new underground mines, particularly the Argo
mine, while the Junction mine also performed well. Toll treatment
delivered some 33,000 ounces, from 325,000 tons treated for the
quarter, against 26,000 ounces in the March quarter. The decrease
in ore volumes treated from 1.72 million tons to 1.49 million tons,
is largely due to a reduction in tonnage at the heap leach plant,
as that plant's crusher had to be used to augment volumes through
the St Ives mill crusher, due to problems with the mantle and bowl
in that unit. This was resolved by quarter end. Operating costs,
including gold in process adjustments, were marginally lower at
A$59 million (R281 million; US$43 million) compared with the March
quarter's A$60 million (R310 million; US$45 million). Total cash
costs decreased from A$442 per ounce (US$338 per ounce) to A$422
per ounce (US$304 per ounce), reflecting the increase in gold
production. Operating profit from St Ives amounted to A$21 million
(R99 million; US$15 million) compared to A$11 million (R58 million;
US$9 million) achieved in the March quarter, reflecting the
increase in sales volumes and a 3 per cent increase in received
price to A$556 per ounce. Capital expenditure for the June quarter
amounted to A$75 million (R284 million; US$48 million) compared
with A$50 million (R239 million; US$39 million) in the March
quarter. The majority of this expenditure was incurred on the mill
optimisation project (see below for more detail) and expenditure at
Mars pit to bring it to full production. St Ives completed the toll
treatment programme according to plan at the end of the June
quarter. Consequently, gold production from this mine will be lower
in the September quarter, though not to the extent of the full
tolling volumes. The tolling program was undertaken in F2004 to
augment cash flows and support gold production given the ramp up in
production from the new underground sources and the uncertainties
on the Junction mine. However, the cost of toll treatment is more
than twice that of treating ore through the new St Ives mill. With
that plant due for commissioning by the end of the December
Quarter, further tolling was considered imprudent from a value
point of view. The surface mining fleet, which had produced the
majority of ore for toll treatment will continue to operate at full
capacity of 800,000 to 900,000 bcm's per month, with the stripping
of the Mars and Pluton pits consuming the additional mining
capacity. Total cash costs should continue to improve incrementally
in the coming quarter with the ongoing improvement in the new
underground mines. The full benefits of the mill will only be seen
in the middle of F2005. AGNEW June March 2004 2004 Gold produced -
000'ozs 52.7 52.8 Total cash costs - A$/oz 306 304 - US$/oz 221 233
Gold produced at Agnew for the quarter was constant at 52,700
ounces, contrary to previous forecasts. These forecasts had assumed
a significant reduction in the volume of mining from the
Crusader/Deliverer underground mine, This mine, which mined 10,000
ounces in the quarter against 14,000 ounces in the March quarter,
remains in a scale down mode and operations are now largely focused
on remnant recovery which is difficult to predict. The Kim
underground mine performed exceptionally well, producing some
37,000 ounces, offsetting the reduction at Crusader. The low grade
stockpiles contributed a stable 10,000 ounces to the mill feed.
Operating costs, including gold in process charges, were unchanged
at A$16 million (R79 million; US$12 million). Total cash costs
increased marginally to A$306 per ounce, while decreasing 5 per
cent in US dollar terms to $221 per ounce due to the weaker
Australian dollar. Agnew's contribution to operating profit was
A$13 million (R61 million; US$9 million), similar to the March
quarter. Capital expenditure increased to A$8 million (R24 million;
US$4 million) from A$7 million (R30 million; US$5 million) the
previous quarter. Expenditure was incurred on pre-production
development at Main Lode underground and metallurgical upgrades.
Gold production in the September quarter is expected to be lower
than the June quarter as production from the Crusader/Deliverer
declines. Unit costs will be affected accordingly. Quarter ended 30
June 2004 compared with quarter ended 30 June 2003 Attributable
gold production was unchanged at 1,042,000 ounces in the June 2004
quarter compared with the June 2003 quarter. Slightly lower
production at the South African operations was offset by an
increase at the international operations. Revenue decreased 3 per
cent in rand terms (increased 13 per cent in US dollar terms) from
R2,971 million (US$383 million) to R2,869 million (US$434 million).
This was due to a reduction in the rand gold price achieved from
R86,751 per kilogram (US$349 per ounce) in the June 2003 quarter to
R83,731 per kilogram (US$395 per ounce) in the June 2004 quarter.
Group operating costs in rand terms increased by 6 per cent or R140
million (US$77 million) to R2,364 million (US$357 million). At the
South African operations operating costs increased by only 5 per
cent or R83 million (US$53 million) despite an effective 13 per
cent wage increase from 1 July 2003. The increase at the
international operations amounted to 9 per cent, from R654 million
(US$83 million) to R711 million (US$107 million). This increase
resulted from increased volumes mined in Australia and an increase
in waste mined at Tarkwa to improve mining flexibility. Partially
offsetting this is the effect of translating costs at Ghana into
South African rand at a 15 per cent stronger rand/US dollar
exchange rate than the corresponding quarter in the previous year.
The average exchange rate strengthened from R7.74 to the US dollar
in the June 2003 quarter to R6.60 in the current quarter. The
effect of translating costs at the Australian operations was small,
with the average exchange rate strengthening from ZAR4.89 to
ZAR4.75 rand to the Australian dollar in comparative periods.
Operating profit at R545 million (US$83 million) for the June 2004
quarter compares to R717 million (US$100 million) for the June 2003
quarter as a result of the above factors. Loss before tax amounted
to R279 million (US$38 million) compared with a pre- tax profit of
R968 million (US$124 million) in the June 2003 quarter. This
decrease was due to the lower operating profit described above as
well as a loss on financial instruments of R71 million (US$10
million) compared to a gain in the June 2003 quarter of R311
million (US$35 million) and an exceptional loss of R432 million
(US$62 million) compared to an exceptional gain of R272 million
(US$31 million) in the June 2003 quarter. Earnings decreased from
R789 million (US$98 million) in the June 2003 quarter to a loss of
R186 million (US$25 million) in the June 2004 quarter. Year ended
30 June 2004 compared with year ended 30 June 2003 Attributable
gold production decreased 4 per cent from 4,334,000 ounces to
4,158,000 ounces due to a reduction at the South African operations
from 3,081,000 ounces to 2,804,000 ounces. Production at the
international operations increased by 8 per cent from 1,253,000
ounces to 1,354,000 ounces year on year. The decline at the South
African operations is due to lower grades and the sale of St
Helena. St Helena accounted for 43,700 of these ounces. Gold output
from Kloof and Driefontein decreased by 120,000 ounces and 105,000
ounces respectively. International operations performed well during
the period with Agnew having a spectacular year. Revenue decreased
by 15 per cent in rand terms (increased 11 per cent in US dollar
terms) from R13,893 million (US$1,532 million) to R11,773 million
(US$1,706 million). This was due to the decrease in production and
a decrease in the gold price, from R97,060 per kilogram (US$333 per
ounce) to R85,905 per kilogram (US$387 per ounce) for the year
ended 30 June 2004. Operating costs increased 3 per cent from
R9,142 million (US$1,008 million) to R9,411 million (US$1,364
million). However, due to the lower production, total cash costs
increased 9 per cent to R67,075 per kilogram from R61,766 per
kilogram in the prior period. The increase in operating costs at
the South African operations of 6 per cent was offset by the lower
costs at the International operations, as a result of translating
the Ghanaian operations at a 24 per cent stronger rand, which
strengthened from an average of R9.07 to R6.90 to the US dollar
year on year. The rand when compared with the Australian dollar had
a similar effect when translating the Australian operations, though
smaller at 7 per cent, strengthening from an average of 5.29 to
4.92 rand to the Australian dollar. Operating profit was R2,315
million (US$336 million), which decreased from R4,741 million
(US$523 million) for the year to 30 June 2003. Profit before tax
amounted to R978 million (US$142 million) down from R4,445 million
(US$490 million) for the same period last year due to the lower
operating profit described above and the effect of the following
items. Gains on financial instruments of R129 million (US$19
million) decreased 72 per cent from R461 million (US$51 million)
for the year to June 2003. Finance income of R29 million (US$4
million) decreased from R158 million (US$18 million) in the prior
period. The exceptional gains last year were R572 million (US$63
million) compared with the current year's loss of R176 million
(US$26 million). Net earnings were reduced from R2,953 million
(US$326 million) to R768 million (US$111 million) for the current
year to 30 June 2004. Capital and development projects ST IVES
EXPANSION PROJECT All aspects of the St Ives new mill project
progressed satisfactorily during the quarter with the overall
project schedule and budget remaining on target. Of significant
note during the quarter were the completion of all the large civil
foundations and the installation of the 36 foot diameter SAG mill.
Installation of the gearless drive and electrical motor components
commenced in July 2004. Civil construction and earthworks are
largely complete while leach tank and thickener construction
reached some 80 per cent in the quarter. Equipment procurement is
now complete with attention focussing on expediting the ordered
items. While delivery of the gyratory crusher remains on the
critical path, commissioning is still expected by the end of the
second quarter of F2005. Capital expenditure and commitment on the
project at the end of the June quarter totalled A$65 million and
A$95 million respectively against the overall approved budget of
A$125 million. Actual expenditure for the June quarter was A$45
million. TARKWA EXPANSION PROJECT CIL Process Plant During the
quarter, this project continued to track ahead of schedule. In
particular, the new crusher was commissioned and brought on line to
crush ore for the north leach plant, while that plant's crusher has
been taken off line for upgrading. Further, erection of the leach
tanks was completed while the SAG mill shell was assembled, and by
quarter end was ready for drive and liner installation. Other key
focus areas included mechanical and piping installation reaching
some 66 per cent and 33 per cent respectively, and electrical and
instrumentation at some 28 per cent complete. The tailings storage
facility construction continues to advance satisfactorily with the
majority of the embankment at final height. At this stage cold
commissioning is expected during the September quarter and mill
commissioning on ore due in the December quarter. The project is
still forecast to completion within the Feasibility capital costs
of US$85 million, excluding some US$6 million of foreign exchange
exposures on the Project. To date US$78million has been spent.
Conversion to owner mining A smooth transition from contract mining
to owner mining took place on 25 June. At this time all operating
and support staff have been transferred from the contractor to
Tarkwa's employment while 17 haul trucks, 5 excavators and 5 drill
rigs have been brought into operation. The build up of the
remaining fleet will occur in the coming quarter. The contractor
has been retained to provide back- up mining volumes to Tarkwa's
new mining fleet during the September quarter. During the June
quarter expenditure on this project more than doubled to US$36
million, and outstanding expenditure on this project is some
US$17million, due in the coming quarter. This project has been
successfully executed, both within budget and on schedule,
reflecting the commitment and planning of the mine team but also
that of the workforce, (AMS) - the current contract miner, and the
new equipment vendors and service suppliers. ARCTIC PLATINUM
PROJECT Activity at APP continued to focus on the two large tonnage
open pittable deposits at Suhanko, namely Konttijarvi and
Ahmavaara. The Environmental Permit Application for the Suhanko
project was submitted to the Northern Permitting Authority in Oulu
in mid June. Exploration work was focused on interpretation and
modelling of the year's drilling results. Resource models based on
the new information are scheduled for completion at the end of
July. A bulk sample of 5,300 tons was mined from the two deposits
during the June quarter. The sample was transported to the pilot
plant and processing at the pilot scale commenced. The pilot plant
has so far successfully demonstrated continuity of the process at
this scale and has produced batches of bulk concentrate for
downstream processing test work. The pilot scale concentrator
campaign and the subsequent downstream treatment test work remain
the critical path to completion of the feasibility study on this
project. It is planned to reach an investment decision by the end
of this calendar year with permitting expected to be completed in
the first half of 2005. DAMANG EXPANSION PROJECT As previously
reported, a dedicated project team was mobilised earlier this year
to evaluate the various options for the Damang operation arising
from the exploration programmes undertaken through to the end of
December 2003. This evaluation has indicated that ores from the
Rex, Amoanda and Tomento orebodies could add an additional year of
life to this mine. While this aspect is disappointing, the most
important outcome of this project has been the definition of
additional high grade ore in a possible cut back of the Damang pit,
which has the potential to add a further 300,000 to 400,000 ounces
to mineable inventory at Damang. Detailed drilling of this option
is still underway. Exploration drilling of the Abosso Deeps also
commenced during this quarter. This target comprises a narrow reef
conglomerate target located in the southern end of the Damang lease
area, on strike from the old Abosso underground mine. While
permitting and community negotiations regarding exploitation of the
Rex and Amoanda orebodies has progressed well it is unlikely either
of them will be brought to production in the second half of the
financial year. Similarly, the lead time on detailed drilling of
the Damang pit cut back is unlikely to be undertaken in the next
two quarters and so the benefits of these options will only be seen
in the second half of F2005. Exploration and Corporate Development
CERRO CORONA IN PERU Following the successful completion of due
diligence review of the Cerro Corona project in the March Quarter,
project development activities have moved into full swing. The
critical path to a decision on this project is the environmental
permitting, and during the quarter the baseline environmental study
was updated while community relationship building exercises were
advanced. In parallel, the feasibility study of this project is
being revisited, and all aspects of the study were mobilised in
this period. At this stage permitting is expected to be completed
in the 4th quarter of 2005, facilitating an investment decision
then. FURTHER CHINA VENTURES Activities continued in China during
the quarter with government approvals being received for the
formation of the Heishan joint venture (70 per cent Sino GFI joint
venture and 30 per cent Shandong Bureau of Geology and Mineral
Resources) and the agreement to option an interest in the Sandi
joint venture (80 per cent Sino GFI joint venture and 20 per cent
Shandong MMI), both a result of activities generated by the Sino
Gold � Gold Fields Shandong joint venture. In Fujian province, an
agreement was reached with Fujian Zijin Mining Corporation for
further cooperation on gold exploration in that province. OTHER
PROJECTS During the quarter Gold Fields completed drilling on eight
of its extensive inventory of exploration projects. Gold Fields
continues to be very active in the African exploration region. A
25,000 metre drilling programme continued on the Mampehia prospect
within our 100 per cent owned Bibiani project in Ghana. Over the
last two years, Gold Fields has discovered extensive surface
indications on this project that is immediately adjacent to
Newmont's Ahafo project. Based upon results seen to date, we are
hopeful of presenting an initial resource statement at Mampehia
during the first quarter of F2005. Elsewhere in Africa, a third
phase of drilling was approved and nearly completed at the Essakane
project in Burkina Faso and significant results were reported by
our joint venture partner Orezone Resources Inc. This joint venture
project would allow Gold Fields to earn up to 60 per cent interest
from Orezone Resources. A drill programme was also completed and a
second phase programme initiated on the Mansounia prospect in
Guinea, a joint venture with Afminex Limited. Drilling was also
completed at the 80 per cent owned Kisenge prospect in the southern
DRC and initiated at the Tembo joint venture in Tanzania. An option
agreement was signed with the DRC parastatal OKIMO on a portion of
concession C38 in the historic Moto region. In South America, drill
programmes were completed at the CaAffticapa prospect in Ecuador as
part of the Condor joint venture with IAMGold. Results did not meet
GFI's expectations and it has subsequently relinquished its rights
under that agreement. Drilling was also completed at the Chucapaca
prospect in southern Peru. GFI converted its joint venture interest
in the Tireo joint venture in the Dominican Republic with MinMet
plc, for stock in a newly formed Canadian company, GoldQuest, in
which we also participated in the IPO. Gold Fields retains a
back-in right on prospects within the original Tireo joint venture
area. In North America, an abbreviated winter drilling programme
was completed at the Three Bluffs prospect. Our joint venture
partner, Committee Bay Resources has released results of this
program and the summer season drilling has just commenced on this
attractive project. NORILSK During the June quarter, a technical
team visited the Russian gold assets of Norilsk. This is consistent
with the previously stated approach to explore the potential for
co-operation with regards to our respective gold assets. The
process of evaluating the results of this visit are underway, and
initial results are encouraging enough to continue this process. We
have been advised by Norilsk Nickel that all necessary approvals,
with respect to the acquisition of the 20 per cent Gold Fields
share block purchased from Anglo American on 29 March 2004, have
been received. Norilsk have also stated that it is their clear
intent to use this block to create a common strategy with regard to
our respective gold assets. Corporate matters LEGAL A lawsuit was
filed by Zalumzi Singleton Mtwesi against Gold Fields Limited in
the State of New York on 6 May 2003. Mr. Mtwesi alleges, inter
alia, that during the apartheid era, he was subjected to human
rights violations. Mr. Mtwesi filed the lawsuit on behalf of
himself and as representative of all other victims and all other
persons similarly situated. In summary, Mr. Mtwesi and the
plaintiffs' class demand an order certifying the plaintiffs' class
and compensatory damages from Gold Fields Limited. A complaint has
not been served on Gold Fields Limited. If and when service of the
complaint takes place it will be vigorously contested. On July 9,
2004, a lawsuit was filed in a federal district court in New York
by six individuals against Gold Fields and a number of other
defendants including IBM Corporation, Anglo American PLC, UBS AG,
Union Bank of Switzerland, Fluor Corporation, Strategic Minerals
Corporation, the Republic of South Africa and President Thabo
Mbeki. The lawsuit alleges, among other things, that one of the
plaintiffs was a victim of apartheid, including by virtue of acts
committed at Gold Fields' facilities in Randfontein, South Africa,
and that Gold Fields is liable for various wrongful acts and
property expropriation, as well as violations of international law,
allegedly committed during the apartheid era in South Africa. The
plaintiffs are seeking, on each of two counts, unspecified
compensatory damages, punitive damages and interest and costs and
seeks those penalties against the various defendants jointly and
severally. A complaint has not been served on Gold Fields. If and
when service of the complaint takes place it will be vigorously
contested. DIVIDEND In line with the company's policy of paying out
50 per cent of its earnings, subject to investment opportunities
and excluding impairments, a final dividend has been declared
payable to all shareholders as follows: - final dividend number 61:
40 SA cents per share - last date to trade cum-dividend: Friday 13
August 2004 - sterling and US dollar conversion date: Monday 16
August 2004 - trading commences ex-dividend: Monday 16 August 2004
- record date: Friday 20 August 2004 - payment date: Monday 23
August 2004 Share certificates may not be dematerialised or
rematerialised between Monday, 16 August 2004 and Friday, 20 August
2004, both dates inclusive. Outlook for September 2004 quarter
Shareholders are advised that the expected net earnings for the
quarter ending 30 September 2004 will be lower than those achieved
for the quarter ended 30 June 2004 excluding the impact of the
impairment, net of tax, at Beatrix 4 shaft of R315 million (US$45
million). This is mainly due to: * a reduction in the gold price in
rand terms from R83,731 per kilogram in the June quarter to below
R80,000 per kilogram in the September quarter based on the price
level prevailing at the time of issuing this report; * an increase
in operating costs, mainly due to above inflation wage increase in
South Africa effective from 1 July; * a small reduction in gold
produced, mainly from the international operations. Basis of
accounting The unaudited quarter and year-end results have been
prepared on the International Financial Reporting Standards (IFRS)
basis. The detailed financial, operational and development results
for the June 2004 quarter and financial 2004 are submitted in this
report. These consolidated quarterly statements are prepared in
accordance with IFRS 34, Interim Financial Reporting. The
accounting policies are consistent with those applied at the
previous year-end. Audit review The year-end results have been
reviewed in terms of Rule 3.23 of the listing requirements of the
JSE Securities Exchange SA by the Company's auditors,
PricewaterhouseCoopers Inc. This unqualified review opinion is
available upon request form the Company Secretary and on the web
site. I.D. Cockerill Chief Executive Officer 29 July 2004 FIRST ADD
-- TABULAR MATERIAL -- TO FOLLOW DATASOURCE: Gold Fields Limited
CONTACT: Investor Relations - Willie Jacobsz, +27-11-644-2460, or
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, , all of Gold Fields Web
site: http://www.goldfields.co.za/ http://www.gold-fields.com/
Copyright