Gold Fields of S.A. - Final Results
August 19 1999 - 4:40AM
UK Regulatory
RNS No 2461e
GOLD FIELDS OF SOUTH AFRICA LIMITED
19 AUGUST 1999
GOLD FIELDS OF SOUTH AFRICA LIMITED
(Registration No. 05/04181/06)
("GFSA" or "the company")
Announcement of audited results
Consolidated Income Statement
Year ended Year ended
30 June 30 June
1999 1998
Rm Rm
Revenue
Income from investments 52 170
Interest received 127 87
Profit from zinc smelting - 87
Surplus on realisation of investments - 1
Income from fees and other sources 21 143
200 488
Expenditure 66 252
Administration, technical and general 55 173
Interest paid 10 38
Exploration and project investigation 1 41
Profit before tax
and exceptional gains 134 236
Exceptional gains 813 857
Profit before tax 947 1 093
Tax 32 59
Profit after tax 915 1 034
Minority shareholders' interest 108 44
Profit attributable to
ordinary shares 807 990
Unappropriated profit,
brought forward 6 6
813 996
Less: 807 990
Ordinary dividends declared 342 252
Interim - 300c (80c) 342 81
Final - nil (150c) - 171
Unbundling distribution 2 095 -
Share distribution at book value 4 175 -
Less reduction in share premium 2 080 -
Transfer (from)/to reserves (1 630) 738
Unappropriated profit,
carried forward 6 6
Earnings per share - cents 708 928
Headline earnings per share - cents 58 128
Dividends per share - cents 2 136 230
Times covered - 0,6
Consolidated Balance Sheet
At At
30 June 30 June
1999 1998
Rm Rm
Fixed assets 15 141
Investments 446 4 875
Mineral properties 3 65
Loans advanced 72 188
Net current assets/(liabilities) 806 (130)
Current assets 950 508
Cash 928 290
Other 22 218
Less: Current liabilities 144 638
1 342 5 139
Share capital 492 2 560
Reserves 720 2 350
1 212 4 910
Deferred tax - 8
Minority shareholders' interest 130 221
1 342 5 139
Abridged Consolidated
Cash Flow Statement
Net cash (outflow)/inflow from
operating activities (2 938) 199
Net cash inflow/(outflow) from
investing activities 5 592 (1 861)
Net cash (outflow)/inflow from
financial activities (2 016) 1 252
Increase/(decrease) in cash on hand 638 (410)
ADDITIONAL INFORMATION
Investments
Listed - Book value 446 4 884
- Market value 890 8 405
- Excess over book value 444 3 521
Unlisted - Book value - 65
- Directors' valuation - 164
- Excess over book value - 99
446 4 949
Provision for diminution in value - 74
446 4 875
Number of ordinary shares in issue 114 075 385 113 924 903
Net asset value per share (cents) 1 441 7 448
NOTES:
1. Dividend
The interim ordinary dividend No. 102 of 300 cents per share in respect of the
six months ended 31 December 1998 was declared on 18 January 1999 and was paid
on 3 March 1999.
2. Headline Earnings
Headline earnings are calculated after the deduction of exceptional gains and
its respective portion of tax and minorities' interest.
Exceptional gains are summarised as follows: Rm
Surplus on disposal of investments (including subsidiaries) 798
Surplus on disposal of mineral rights 109
Less: Additional restructuring costs 54
Write-offs and loss on disposal of assets 40
813
3. Net Asset Value (NAV)
The NAV of the company, at market value, calculated on a consolidated basis as
at 30 June 1999 is:
Number of shares
Investment (Beneficial holding) Share Price (R) Total Rm
GFL 6 689 284 20,70 138
Northam 148 394 633 4,84 718
Sasol 360 676 43,05 16
Cash 774
Sundry (2)
1 644
4. Restructuring
As previously reported, during the year the Group embarked on a restructuring
process aimed at unlocking shareholder value which is described below:
4.1 The Unbundling
The major portion of the Group's net asset value lay in its investments in
Gold Fields Limited ("GFL") and in Standard Bank Investment Corporation
Limited ("Stanbic"). It was announced on 15 May 1998 that the board had
recommended that the GFL and Stanbic shares be passed on to shareholders by
way of an unbundling. At a general meeting held on 16 September 1998
shareholders approved all the necessary resolutions and, pursuant to all other
conditions precedent having been fulfilled, the distribution was effected on
19 October 1998. GFSA shareholders received 155,265 GFL shares and 96,208
Stanbic shares for every 100 GFSA shares held.
4.2 Sale of Gold Fields Coal Limited ("GF Coal")
It was announced on 30 July 1998 that the company and its subsidiaries had
accepted an unconditional cash offer of R21,25 per share for their holdings in
GF Coal from Anglo American Coal Corporation Limited. GFSA also agreed, as
part of an empowerment initiative, to sell all of its unexploited coal
interests to New Coal, the empowerment vehicle, for a nominal sum.
4.3 Base Metal Company Sales
In June last year the company announced that it had initiated an international
select tender process in terms of which potential purchasers were invited to
make indicative bids for the Group's base metal assets. By March of this year
this process was completed with the sale of Zinc Corporation of South Africa
Limited ("Zincor"). Salient features are given below:
4.3.1 Dwarsrivier Farms Limited
The mineral rights to chrome and platinum group metals, held by this company
in the Lydenburg, Mpumalanga area, were sold to The Associated Manganese Mines
of South Africa Limited for R163 million.
4.3.2 Black Mountain and Gamsberg Zinc
The Group's respective interests in Black Mountain Mineral Development Company
(Proprietary) Limited ("BMMD") and Gamsberg Zinc Corporation Limited
("Gamsberg") were acquired by Anglo American Corporation of South Africa
Limited for cash considerations of R155 million and R165 million respectively.
These interests were:
* a 55,4% interest in BMMD held by GFSA and its wholly-owned subsidiary Gold
Fields Mining and Development Limited ("GFMD") (54,5%) and Vogelstruisbult
Metal Holdings Limited ("Vogels") (0,9%);
and
* a 55% interest in Gamsberg held by GFMD (27,5%) and O'okiep Copper Company
Limited (27,5%).
4.3.3 O'okiep
The Group's interest of 81,47% in O'okiep Copper Company Limited held by GFSA
(48,61%), Vogels (30%) and New Wits Limited (2,86%) was sold to Metorex
(Proprietary) Limited for a cash consideration of R28,175 million.
4.3.4 Zincor
An agreement was concluded in March 1999 in terms of which Iscor Limited
acquired the Group's interest of 65% in Zincor for a cash consideration of
R245 million. The Group's interest was held by GFSA (17,67%), New Wits (9,33%)
and Vogels (38%).
4.4 CGU
The Group's 22% interest in CGU Insurance Limited (formerly Commercial Union
of South Africa Limited) was sold to Metropolitan Life Limited for a cash
consideration of R232 million.
4.5 Business Partners
The Group's interest in Business Partners (formerly Small Business Development
Corporation) was sold for R44 million.
5. Share Capital
In terms of an ordinary resolution passed at the aforementioned general
meeting of shareholders of this company on 16 September 1998, shareholders
approved the early termination of participants' interests in the Gold Fields
Incentive Scheme and agreed, in consideration for the early termination,
that there be made over to such participants a maximum of 623 732 ordinary
shares in the company, of which 473 250 shares received by a subsidiary of
this company in terms of the unbundling of New Wits Limited, were made over by
the subsidiary directly to such participants and the balance of 150 482
shares were allotted and issued by this company to such participants.
Accordingly, the company's issued share capital has increased to R5 703 769,25
divided into 114 075 385 ordinary shares of 5 cents each.
6. Year 2000
The Group has formulated detailed plans to ensure Year 2000 compliance is
achieved by 30 September 1999. These plans include an evaluation of all
hardware and software systems which are critical to meeting the Group's
business needs in the new millennium. Progress against these plans is reported
to the company's audit committee. Results achieved so far indicate that it is
unlikely that the Group will encounter any difficulties from its internal
systems. Costs incurred are not material and have been charged against income
when incurred.
7. Outlook
The board is currently examining a number of options for the optimal
distribution of surplus assets to shareholders. Shareholders can expect
further information in due course.
8. Final Dividend
The board of directors has resolved not to declare a final dividend.
Kenilworth House On behalf of the board
Rutherford Estate
1 Scott Street J. P. Rupert
Waverley (Chairman)
2090
A. J. Wright
(Deputy Chairman)
END
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