GFSA G4s Plc

RNS No 6148h
GOLD FIELDS OF SOUTH AFRICA LIMITED
20th October 1998

SALE OF INTERESTS IN ZINC CORPORATION OF SOUTH AFRICA LIMITED ("ZINCOR")

Sale of Zincor

The Companies are pleased to announce that, following the conclusion of an
international select tender process, the Companies have reached agreement in
principle with Iscor Limited ("Iscor"), whereby Iscor will acquire, for a cash
consideration of R245 million, their respective interests in Zincor ("the
sale"), subject to certain conditions precedent as outlined in paragraph 3
below. The Companies' interests in Zincor are as follows :

Company        Shares held        Interest (%)
GFSA               972 000               17,7
New Wits           513 000                9,3
Vogels           2 090 000               38,0
Total            3 575 000               65,0
 
Subject to the conditions precedent as outlined in paragraph 3 below, Zincor
will become a wholly-owned subsidiary of Iscor.

Description of Zincor

Zincor, situated near Springs in the Gauteng Province of South Africa, is
engaged in the treatment of zinc concentrates to produce zinc metal and
associated by-products and is currently the only producer of zinc in Southern
Africa. For the twelve months ended 30 June 1998,      107 400 tonnes of zinc
metal and 166 412 tonnes of sulphuric acid were produced. 

Conditions Precedent

In addition to the normal conditions applicable to transactions of this
nature, the sale is subject to the following conditions precedent:

The completion by Iscor of a due diligence investigation into the financial,
fiscal, mineral rights holdings and other materially relevant aspects of
Zincor, which due diligence will be completed by Friday, 13 November 1998 or
such later date as may be agreed; and
The approvals by the directors and/or shareholders of the Companies of the
sale, as may be required and to the extent that the sale affects each of the
Companies.

Employees    
 
Iscor recognises the rights of employees of Zincor relating to conditions of
employment and benefits in terms of contract and statute and undertakes to
procure that Zincor deals with such employee rights and benefits in terms of
any applicable contract which, as at the date of the agreement governing the
sale, was binding upon Zincor.

In addition, in the event of any redundancy exercise, Iscor will procure that
Zincor will recognise the past service of any employee of Zincor with any
company that is or was a member of the GFSA Group. 

Financial Effects
 
The financial effects of the sale upon the Companies may be summarised as
follows:

                      Earnings Per Share            Net Asset Value Per Share 
Company     Before sale (1)   After sale (2)   Before sale (3)  After sale (4)
GFSA              928,0           965,7          7 448,0          7 580,9
New Wits           84,0           137,7          1 411,0          1 622,1
Vogelstruisbult    57,0           255,1          1 425,0          2 203,7

Notes

1. Based upon the earnings per share for the year ended 30 June 1998.
2. Assuming the cash realised from the sale by each respective company was  
   invested on 1 July 1997 and earned interest up until 30 June 1998 at the
   average rate of 15 per cent per annum and that this interest was taxed at
   the average rate of 35 per cent.
3. Based upon the net asset value per share as at 30 June 1998.
4. Assuming the cash realised from the sale by each respective company was
   held on 30 June 1998.


Johannesburg

END


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