ANNUAL REPORT 2009
ANNUAL REPORT 2009
Table of contents
Section 1: Business Reviews
F2009 Financial Highlights
Message from the Chairman
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Board of Directors
Executive Committee
Gold Fields at a Glance
Review of Operations: South Africa Region
Driefontein Gold Mine
Kloof Gold Mine
Beatrix Gold Mine
South Deep Project
Review of Operations: West Africa Region
Tarkwa Gold Mine
Damang Gold Mine
Review of Operations: Australasia Region
St Ives Gold Mine
Agnew Gold Mine
Review of Operations: South America Region
Cerro Corona Gold Mine
Exploration and Business Development
Mineral Resources and Reserves
Section 2: Sustainable Development
Overview of Our Performance
Sustainable Development Policy Statement
Sustainable Development Framework
Ethics and Corporate Governance
Gold Fields’ People
Risk Management
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Material Stewardship and Supply Chain Management
Social Responsibility and Stakeholder Engagement
Conclusion
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Section 3: Annual Financial Statements 89
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Statement of Responsibility
Report of the Independent Auditors
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Management’s Discussion and Analysis of the Financial
Statements
Directors’ Report
Accounting Policies
Consolidated Income Statement
Consolidated Balance Sheet
Consolidated Statement of Changes in Equity
Consolidated Cash Flow Statement
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Company Income Statement
Company Balance Sheet
Company Statement of Changes in Shareholders’ Equity
Company Cash Flow Statement
Notes to the Company Annual Financial Statements
Major Group Investments – Direct and Indirect
Segment Report
Shareholders’ Information
Operating and Financial Information by Mine
Notice of Annual General Meeting
Administration and Corporate Information
Glossary of Terms
Proxy Form
Notes to Form of Proxy
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Attached
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
1
Gold Fields Vision
To be the global leader in sustainable gold mining.
Gold Fields Profile
Gold Fields is one of the world’s largest unhedged producers of gold with attributable production of
3.6 million ounces* per annum from nine operating mines in South Africa, Ghana, Australia and Peru.
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projects at various stages of development. Gold Fields has total attributable Mineral Reserves of
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(primary listing), the New York Stock Exchange (NYSE), the Dubai International Financial Exchange
(DIFX), the Euronext in Brussels (NYX) and the Swiss Exchange (SWX).
*Based on the annualised run rate for the fourth quarter of F2009
Forward looking statements
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21E of the US Securities Exchange Act of 1934.
Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance
or achievements of the company to be materially different from the future results, performance or achievements expressed or implied by such forward
looking statements. Such risks, uncertainties and other important factors include among others: economic, business and political conditions in South Africa,
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labour disruptions; availability terms and deployment of capital or credit; changes in government regulations, particularly environmental regulations; and
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action, temporary stoppages of mines for safety reasons; and the impact of the Aids crisis in South Africa. These forward looking statements speak only as
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Scope of this report
(cid:59)(cid:79)(cid:80)(cid:90)(cid:3)(cid:89)(cid:76)(cid:87)(cid:86)(cid:89)(cid:91)(cid:3)(cid:87)(cid:89)(cid:86)(cid:93)(cid:80)(cid:75)(cid:76)(cid:90)(cid:3)(cid:72)(cid:85)(cid:3)(cid:86)(cid:93)(cid:76)(cid:89)(cid:93)(cid:80)(cid:76)(cid:94)(cid:3)(cid:86)(cid:77)(cid:3)(cid:46)(cid:86)(cid:83)(cid:75)(cid:3)(cid:45)(cid:80)(cid:76)(cid:83)(cid:75)(cid:90)(cid:187)(cid:3)(cid:77)(cid:86)(cid:92)(cid:89)(cid:3)(cid:58)(cid:86)(cid:92)(cid:91)(cid:79)(cid:3)(cid:40)(cid:77)(cid:89)(cid:80)(cid:74)(cid:72)(cid:85)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:196)(cid:93)(cid:76)(cid:3)(cid:80)(cid:85)(cid:91)(cid:76)(cid:89)(cid:85)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:72)(cid:83)(cid:3)(cid:86)(cid:87)(cid:76)(cid:89)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:90)(cid:3)(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)(cid:19)(cid:3)(cid:86)(cid:85)(cid:3)(cid:72)(cid:3)(cid:46)(cid:89)(cid:86)(cid:92)(cid:87)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:84)(cid:80)(cid:85)(cid:76)(cid:3)(cid:73)(cid:96)(cid:3)
(cid:84)(cid:80)(cid:85)(cid:76)(cid:3)(cid:73)(cid:72)(cid:90)(cid:80)(cid:90)(cid:21)(cid:3)(cid:48)(cid:91)(cid:3)(cid:75)(cid:76)(cid:91)(cid:72)(cid:80)(cid:83)(cid:90)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:74)(cid:86)(cid:84)(cid:87)(cid:72)(cid:85)(cid:96)(cid:187)(cid:90)(cid:3)(cid:196)(cid:85)(cid:72)(cid:85)(cid:74)(cid:80)(cid:72)(cid:83)(cid:3)(cid:90)(cid:91)(cid:72)(cid:91)(cid:76)(cid:84)(cid:76)(cid:85)(cid:91)(cid:90)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:52)(cid:80)(cid:85)(cid:76)(cid:89)(cid:72)(cid:83)(cid:3)(cid:57)(cid:76)(cid:90)(cid:76)(cid:89)(cid:93)(cid:76)(cid:90)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:52)(cid:80)(cid:85)(cid:76)(cid:89)(cid:72)(cid:83)(cid:3)(cid:57)(cid:76)(cid:90)(cid:86)(cid:92)(cid:89)(cid:74)(cid:76)(cid:90)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:83)(cid:86)(cid:86)(cid:82)(cid:90)(cid:3)(cid:72)(cid:79)(cid:76)(cid:72)(cid:75)(cid:3)(cid:91)(cid:86)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:46)(cid:89)(cid:86)(cid:92)(cid:87)(cid:187)(cid:90)(cid:3)(cid:87)(cid:89)(cid:86)(cid:90)(cid:87)(cid:76)(cid:74)(cid:91)(cid:90)(cid:3)(cid:77)(cid:86)(cid:89)(cid:3)(cid:45)(cid:25)(cid:23)(cid:24)(cid:23)(cid:3)
as it expands its global footprint. The Sustainable Development section of the report covers the activities of all of our existing mines as well as parts of our
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Gold Fields Limited (Gold Fields or the company)
Incorporated in the Republic of South Africa
Registration number: 1968/004880/06
(cid:45)(cid:86)(cid:89)(cid:3)(cid:72)(cid:75)(cid:75)(cid:80)(cid:91)(cid:80)(cid:86)(cid:85)(cid:72)(cid:83)(cid:3)(cid:80)(cid:85)(cid:77)(cid:86)(cid:89)(cid:84)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:33)(cid:3)(cid:94)(cid:94)(cid:94)(cid:21)(cid:78)(cid:86)(cid:83)(cid:75)(cid:196)(cid:76)(cid:83)(cid:75)(cid:90)(cid:21)(cid:74)(cid:86)(cid:21)(cid:97)(cid:72)
2
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
F2009 FINANCIAL HIGHLIGHTS
F2009 salient features
Record safety improvement;
Attributable gold production of 3.4 million ounces;
Total cash costs of US$516 per ounce;
(cid:3)(cid:3)(cid:3)(cid:53)(cid:86)(cid:91)(cid:80)(cid:86)(cid:85)(cid:72)(cid:83)(cid:3)(cid:74)(cid:72)(cid:90)(cid:79)(cid:3)(cid:76)(cid:95)(cid:87)(cid:76)(cid:85)(cid:75)(cid:80)(cid:91)(cid:92)(cid:89)(cid:76)(cid:3)(cid:86)(cid:77)(cid:3)(cid:60)(cid:58)(cid:11)(cid:30)(cid:29)(cid:26)(cid:3)(cid:87)(cid:76)(cid:89)(cid:3)(cid:86)(cid:92)(cid:85)(cid:74)(cid:76)(cid:34)
Operating margin of 39 per cent;
Successful completion of critical infrastructure rehabilitation
and secondary support backlog at South African operations;
Completed construction of Cerro Corona Mine in Peru and
CIL plant expansion at Tarkwa in Ghana;
South Deep remodelled and appropriately resourced to
achieve F2010 target of 300,000 ounces of gold;
Commenced construction of Athena, the fourth underground
mine at St Ives in Australia; and
Three advanced stage exploration projects underway.
Headline earnings per share
South African cents
Operating profit
Rand million
Attributable gold production
’000 ounces
500
400
300
200
100
0
12,000
5,000
9
5
4
1
3
4
10,000
2
9
3
3
0
3
9
4
2005
2006
2007
2008
2009
8,000
6,000
4,000
2,000
0
3
6
4
,
1
1
1
4
0
,
9
0
4
7
,
7
9
3
1
,
5
6
8
2
,
2
2005
2006
2007
2008
2009
3,000
2,000
1,000
0
4,000
9
1
2
,
4
4
7
0
,
4
2
7
9
,
3
8
3
6
,
3
4
1
4
,
3
2005
2006
2007
2008
2009
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
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Operating summary1
For the year ended 30 June
F2009
F2008
F2007
F2006
F2005
Salient features
Gold produced – attributable
Total cash cost
Notional cash expenditure
Gold price
kg
’000oz
R/kg
US$/oz
R/kg
US$/oz
R/kg
US$/oz
Operating profit
Operating margin
Financial summary1
Rand million, unless otherwise stated
Rm
per cent
Revenue
Basic earnings – cents per share
Headline earnings – cents per share
Dividends declared – cents per share
Total assets
Shareholders’ equity
Cash and cash equivalents
Cash flows from operating activities2
Cash generated/(utilised)
Market and ratio analysis
Debt leverage
Net debt: EBITDA
Other
Net asset value per share (Rand)
Dividend payout ratio (per cent)
Exchange rates
Average rate US$1 = R
Closing rate US$1 = R
Share price performance
Ordinary shares (Rand)
– high
– low
– year end
Average daily volume of shares traded (‘000)
American Depository Receipts (US$)
– high
– low
– year end
Average daily volume of shares traded (‘000)
106,186
3,414
149,398
516
221,153
763
253,459
875
11,463
39
29,087
229
431
110
65,254.6
42,669.4
2,803.9
6,000.8
804.1
113,154
3,638
111,315
476
186,088
796
190,623
816
9,041
39
23,010
683
459
185
62,915.5
42,561.2
2,007.3
6,692.1
(478.0)
123,534
3,972
86,623
374
135,666
585
147,595
638
7,740
40
19,434
423
392
185
53,925.0
37,106.3
2,310.1
1,201.4
693.4
126,712
4,074
67,988
330
89,961
437
107,918
524
5,139
35
14,605
313
303
150
31,635.2
20,001.5
1,617.5
3,804.8
(1,781.6)
131,284
4,219
66,041
331
83,569
419
84,218
422
2,286
19
11,756
26
49
70
23,997.4
16,534.1
3,375.0
1,336.4
(919.9)
0.53
0.55
0.59
0.14
(0.84)
60.55
48
9.01
8.06
123.50
54.00
93.52
3,047
13.99
4.64
12.05
7,635
65.16
27
7.27
8.00
135.00
87.01
99.50
2,903
19.60
10.66
12.65
6,368
56.90
44
7.20
7.15
173.80
109.40
109.40
2,581
24.48
15.48
15.70
3,141
40.42
48
6.40
7.43
164.00
68.02
162.00
2,073
26.95
10.59
22.90
2,289
33.59
2693
6.21
6.70
101.01
54.50
76.20
1,356
15.25
9.13
11.35
1,557
Number of shares in issue (‘000)
Market capitalisation at year end (Rm)
704,750
65,908
653,201
64,993
652,158
71,346
494,825
80,162
492,294
37,513
1. Figures are based on last published and audited Annual Financial Statements.
2. Cash flows from operating activities in F2007 impacted by buy-back of Western Areas Limited hedge book.
3. The 269 per cent dividend payout ratio in 2005 was as a result of earnings per share of R0.26 and a dividend of R0.70.
4
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
MESSAGE FROM THE CHAIRMAN
Most importantly,
we have made
progress with our
number one priority:
to improve our safety
record. We reduced fatal
accidents substantially and
showed an improvement
of 55 per cent…
The 2009 fi nancial year has been a year of
West Africa, South America and Australasia.
predictability and consistency, which resulted in
remarkable change and challenge globally, and
All other safety measures, globally, have also
more profi table and sustainable operations in
for Gold Fields specifi cally.
shown considerable improvement.
the second half of the fi nancial year, and have
established a platform for improved performance
While the effects of the economic turmoil were
The Board is fully supportive of the safety initiatives
in the year ahead. Attributable gold production
brought upon us harshly early in the year, I am
being implemented by the management team,
decreased by six per cent from 3.64 million
pleased that we have, nonetheless, maintained
under the capable leadership of Nick Holland,
ounces for the year ended June 2008 to 3.41
a strong focus on advancing our strategy and, in
the Chief Executive Offi cer. Understanding that
million ounces produced in F2009. Revenue
the process, achieved great accomplishments.
we had to change radically our safety culture and
increased by twenty six per cent from R23,010
I can confi dently state that Gold Fields is today in
performance, and with a full mandate from the
million (US$3,165 million) to R29,087 million
a much stronger position than 12 months ago.
Board, Nick and his team have, over the past year,
(US$3,228 million). The thirty three per cent
conducted an all-encompassing re-examination
higher average Rand per kilogram gold price
Most importantly, we have made considerable
of the Gold Fields approach to safety. Following
of R253,459 per kilogram (US$875 per ounce)
progress with our number one priority: to
this assessment, various initiatives have been
compares with last year’s R190,623 per kilogram
improve our safety performance. We reduced
successfully introduced, while others are in the
(US$816 per ounce). Earnings excluding
fatal accidents substantially and showed an
process of being implemented. The Board is
exceptional items, gains and losses on foreign
improvement of 55 per cent, with fatalities
satisfi ed that these interventions are having the
exchange and fi nancial
instruments,
losses
declining from 47 in F2008 to 21 this year.
desired effect and that there has indeed been
of associates after taxation, and discontinued
Despite this improvement, we deeply regret each
a step change in our approach to safety. This
operations, amounted to R2,981 million (US$331
one of these fatalities and we are committed to
is now an integral part of the way Gold Fields
million) compared with R2,939 million (US$404
eliminating all serious and fatal injuries on our
conducts its business.
million) in F2008.
mines. Signifi cantly, our developing South Deep
Gold Mine in South Africa has been fatality free
Gold Fields’ operations have progressively
One of the consequences of the collapse of
for the past year, as have all of our mines in
over the past year shown greater stability,
the global debt markets is that, by and large,
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
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junior exploration companies have considerably
equivalent ounces, our first priority must be
and 21st centuries. As a Board we take this
slowed
their exploration and development
to bring these ounces to account in the most
legacy seriously and we view the longevity
activities. In addition, the number of new mines
cost effective way. We have a world-class
of the company as central to our mandate.
coming into production is generally less than
suite of mines and we know that each one of
It is for this reason that we have embraced
historically expected, driven predominantly by
them is capable of more. It is for this reason
the concept of sustainable development and
the lack of a quality pipeline of new projects
that we have mandated the management
mandated the management team to secure
– mainly because of
increased
legislative
team to increase investment, inter alia, in the
the long-term sustainability of our business
and social challenges, a lack of investment,
integrity of our infrastructure, mechanisation
by giving due attention to the many social,
and no major technological advances. As
and new technologies, and ore reserve
environmental and economic considerations
a consequence, gold production globally is
development. These investments will not
that will undoubtedly have a bearing on
somewhat subdued and greenfields exploration
only enhance
the stability, predictability
the future and that of the many and varied
continues to suffer from reduced investment.
and consistency of the operations, but
stakeholders throughout the world.
enable them to ascend to greater levels of
On the other hand, demand for gold, driven in
productivity and profitability, which is the
Our strategy to expand Gold Fields outside
part by the rapidly increasing middle classes of
principal objective of this strategy.
South Africa has advanced over the years and
certain emerging countries, continued tensions
in many parts of the world and instability in some
(cid:115)(cid:0) (cid:52)(cid:72)(cid:69)(cid:0) (cid:83)(cid:69)(cid:67)(cid:79)(cid:78)(cid:68)(cid:0) (cid:76)(cid:69)(cid:71)(cid:0) (cid:79)(cid:70)(cid:0) (cid:79)(cid:85)(cid:82)(cid:0) (cid:83)(cid:84)(cid:82)(cid:65)(cid:84)(cid:69)(cid:71)(cid:89)(cid:0) (cid:73)(cid:83)(cid:0) (cid:84)(cid:79)(cid:0) “grow
Gold Fields” – not simply for the sake of
this year marked the end of significant capital
programmes at both Tarkwa and Cerro Corona.
resource-rich African regions have, together
growth but growth in profitable production,
We are particularly pleased that the Cerro
with the maturing of the gold Exchange Traded
earnings and returns to shareholders on a per
Corona mine is now fully commissioned and
Funds
(ETF) business, reinforced the role
share basis. Our objective is not merely to add
at full production because this is an important
of gold as a reliable store of value. After taking
ounces, but to add ounces that will improve
step
in the evolving of our strategy. As
all of this into account, it seems as if the
the quality of our asset base. Furthermore,
I indicated above, South America is one of the
gold price could well be sustained at least at
while we do not eschew the value that can
three international regions in which we intend
current levels, while significant upside potential
be added through mergers and acquisitions,
to grow, and the Cerro Corona mine provides
exists.
our preference is to leverage our vast
us with a solid platform from which to venture
Reserve and Resource base for brownfields
forth. Based on the current mines in operation,
Against this background, we believe that Gold
growth, as well as to pursue growth through
production from West Africa, South America
Fields is uniquely positioned to benefit from
greenfields exploration success. Our target
and Australasia is now over one and a half million
what we believe to be a rising tide in the gold
is, within a four to five year time-frame, to
ounces of gold and these regions are now in
market, and it is our intent to ensure that the
grow Gold Fields into a five million ounce
a position to make an important contribution
interests of those who own our company, rise
per annum producer. To this end we have
to the Group’s income stream. A direct result
with the tide.
mandated the management team to pursue
of this achievement is that the Group’s profile
Our vision is for Gold Fields to be the global
focused principally on the four well-endowed
has been broadened considerably. We are
leader in sustainable gold mining.
gold regions of the world where we have
also particularly pleased with the quality and
an aggressive internationalisation strategy,
and attractiveness to international investors
an operating presence. With South Africa
quantum of advanced exploration projects in
The simplicity of this vision statement belies the
expected to provide a stable production
the portfolio, with an equally pleasing level of
thoughtful consideration given to the meaning
base-load of between 2.2 and 2.5 million
early stage possibilities not far behind.
and intent of each word, and therein lies its
ounces for many years into the future, we
power. Our strategy was crafted accordingly.
aim to grow attributable production to a
In the South Africa Region we are satisfied
million ounces per annum in each of West
with the progress that has been made with
At the core of our strategy is our long-standing
Africa, Australasia and South America.
the South Deep Project. South Deep is indeed
conviction not to hedge our gold, because we
Management has also been mandated, with
the mine of the future, in more ways than one.
believe in gold.
a view to the future, to establish a presence
As a totally mechanised mine it is at the core
(cid:115)(cid:0) (cid:52)(cid:72)(cid:69)(cid:0) (cid:108)(cid:82)(cid:83)(cid:84)(cid:0) (cid:80)(cid:73)(cid:76)(cid:76)(cid:65)(cid:82)(cid:0) (cid:79)(cid:70)(cid:0) (cid:79)(cid:85)(cid:82)(cid:0) (cid:84)(cid:72)(cid:82)(cid:69)(cid:69)(cid:70)(cid:79)(cid:76)(cid:68)(cid:0) (cid:83)(cid:84)(cid:82)(cid:65)(cid:84)(cid:69)(cid:71)(cid:89)(cid:0) (cid:73)(cid:83)(cid:0)
to “sweat our assets” – with attributable
in what we consider to be the new frontiers of
of our long-term strategy in South Africa, and
the gold industry – the Tian Shan belt in Asia
will in due course become the mainstay of our
and British Columbia in Canada.
production from this region.
Mineral Resources in excess of 270 million
gold equivalent ounces and attributable
(cid:115)(cid:0) (cid:52)(cid:72)(cid:69)(cid:0) (cid:84)(cid:72)(cid:73)(cid:82)(cid:68)(cid:0) (cid:76)(cid:69)(cid:71)(cid:0) (cid:79)(cid:70)(cid:0) (cid:79)(cid:85)(cid:82)(cid:0) (cid:83)(cid:84)(cid:82)(cid:65)(cid:84)(cid:69)(cid:71)(cid:89)(cid:0) (cid:73)(cid:83)(cid:0) (cid:84)(cid:79)(cid:0) “secure
our future” – founded in 1887, Gold Fields
Our businesses continue
to
face major
Mineral Reserves of some 80 million gold
has served shareholders in the 19th, 20th
challenges. Climate change imperatives are at
6
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
MESSAGE FROM THE CHAIRMAN
the forefront of our decision making processes
liquidity. The satisfactory business risk profi le
during the last twelve months. In November
and effi cient energy usage has been a primary
refl ects our market position as the world’s fourth
2008, Rick Menell joined the Board, and in
focus over the past year. While the economic
largest gold producer, an
industry-leading
March 2009 we welcomed Cheryl Carolus and
downturn may have lessened electricity supply
long reserve life of over 20 years, and healthy
Roberto Dañino to the Board. We have already
pressures, signifi cant investment in electricity
profi tability underpinned by persistently strong
benefi ted greatly from the experience and deep
capacity is still required, especially in South
gold prices. The stable outlook refl ects the
knowledge that Rick, Cheryl and Roberto have
Africa. For this reason, we have participated
expectation that Gold Fields should continue to
brought to Gold Fields. More recently, on 21
in various initiatives to assist in alleviating this
report healthy cash fl ow generation, supported
August 2009, we welcomed Alan Hill to the
concern. Example are our commitment in
by ongoing strong gold prices and a weak
Board of Directors. Alan is a former executive
Ghana to share in the construction costs of a
exchange rate.
facility that will provide power to communities
of Barrick Gold Corporation, and a mining
engineer, and his vast experience will be of
and operations in the areas in which we mine,
In terms of the R4.1 billion Black Economic
great benefi t to Gold Fields.
while in South Africa we continue to implement
Empowerment (BEE) transaction approved by
energy savings initiatives on all of our mines in
shareholders of Gold Fields during March 2004,
Early in August of this year, after the period
order to conserve power.
Mvelaphanda Resources, through
its wholly
covered by this report, but prior to its publication,
owned subsidiary Mvelaphanda Gold, subscribed
the President of South Africa announced
Another pleasing development over the past
for approximately seven per cent of the ordinary
year was our continued focus on the nurturing of
shares of Gold Fields, in March 2009.
talent in the organisation. Various interventions
are underway to ensure that we continue to
On behalf of the Board of Gold Fields I welcome
have suffi cient and appropriately skilled people
the newly appointed Presidents of South
for our existing operations around the world, as
Africa and Ghana into offi ce. The support and
well as for any new operations as we continue
commitment of Gold Fields as a responsible
to expand globally. There have been numerous
operator and dedicated corporate citizen will
senior appointments made from within the
be maintained, as it has been in all the areas in
Group over the last twelve months, which is an
which we operate.
indication that our succession plan is working.
The challenge today is to identify, develop and
At the end of April 2009, the Department
nurture another generation of people that will
of Mineral Resources (DMR) gazetted the
have the capability to lead Gold Fields into the
“Codes of Good Practice for the South African
next decade and beyond.
Minerals Industry”. This is an attempt to set
out administrative principles
for effective
Equally important is the relationship with our
implementation of the minerals and mining
employees and employee
representative
legislation and to enhance implementation of
organisations and unions
in
the various
the Broad-Based Socio-Economic Charter
jurisdictions in which we operate. I am pleased
applicable to the industry. These codes are
to report that the relationships with all of these
aimed at how BEE will be measured. The DMR
organisations remain fundamentally sound and
has indicated that it intends to discuss the new
that we have experienced a growing maturity
codes with industry and we remain supportive
and pragmatism in all interactions with them.
of dialogue as
this will create common
the appointment of Gill Marcus, one of our
fellow directors, as the new Governor of the
Reserve Bank of South Africa. Gill accepted the
appointment and consequently resigned from
the Board, with immediate effect. On behalf
of my fellow directors and all of the people of
Gold Fields, I wish to congratulate Gill on her
appointment and thank her for the immense
contribution that she has made to Gold Fields.
While we regret her departure, we know that we
will continue to benefi t, together with the rest of
South Africa, from her wisdom and leadership
as she assumes her important new role.
Looking
towards next year, we are well
positioned to continue progressing our strategy,
and in doing so, delivering on the targets and
objectives that we have set for ourselves, whilst
being ever mindful of our responsibility to our
communities. Gold Fields and its people remain
committed to ensuring a strong and sustainable
future for all of our stakeholders, for today and
tomorrow.
understanding between all the stakeholders.
Thank you for your ongoing support.
In March 2009, Standard and Poor’s Rating
Services assigned Gold Fields a “BBB-/A3”
On behalf of the Board, I would like to express
long-term and short-term global corporate
my appreciation to the management team,
credit
rating and
“zaA/zaA-1”
long-term
as well as all employees, for the tremendous
and short-term South Africa national scale
commitment displayed over the year. Your
corporate credit rating. The long-term ratings
dedication has been outstanding.
refl ect Gold Fields’ satisfactory business risk
and intermediate fi nancial risk profi les, while the
I also pay tribute to my fellow directors for
short-term ratings refl ect Gold Fields’ adequate
the considerable effort and contribution made
Alan J Wright
Chairman
MESSAGE FROM THE CHIEF EXECUTIVE OFFICER
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
7
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“. . . if we
cannot mine
safely, we will
not mine. . .”
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INTRODUCTION
I am pleased to report that we have had a
year of strong progress against the goals and
objectives articulated in our F2008 annual
report, aimed at setting Gold Fields on a course
for progressively improved performance during
F2010, and the years beyond.
As expected, F2009 was a year of two
fourth quarter with attributable production of
halves. The fi rst half of the year was focused
906,000 ounces of gold. This represented
on
improving
the Gold Fields production
an
improvement of 108,000 ounces, or
machine. This included the completion of our
14 per cent, over the low point recorded
international growth projects, as well as a
in the fi rst quarter, and is a trend that we
number of planned, safety related production
expect to see continuing throughout F2010
interruptions at our South African mines for the
as Gold Fields moves closer to its short- to
During F2009 we embraced a bold yet simple
new vision, which is for Gold Fields to be the
global leader in sustainable gold mining.
Underpinning this vision, we have also adopted
six values that guide us towards achieving this
vision. These are:
1. Safety: If we cannot mine safely, we will not
rehabilitation of critical infrastructure, which was
medium-term goal of again producing between
the main contributor to a six per cent decline
3.8 million and 4 million attributable ounces of
in attributable gold production to 3.41 million
gold per annum.
ounces for F2009.
However, as expected, in the second half of
operational challenges, it was also a year of
the year we experienced a return to greater
signifi cant milestones on our course towards
While F2009 was a year of unprecedented
mine.
stability, predictability and consistency
in
achieving this target on a sustained basis.
2. Responsibility: We act responsibly and
care for the environment, each other, and
all of our stakeholders – our employees, our
communities, and our shareholders.
3. Honesty: We act with fairness, integrity,
honesty and transparency.
4. Respect: We treat each other with trust,
5.
respect and dignity.
Innovation: We encourage innovation and
entrepreneurship.
our performance as our international growth
projects and the rehabilitation projects at our
The fi rst and most important of these
South Africa mines were completed. After
milestones was the signifi cant strengthening of
reaching a production low point of 798,000
the safety culture in Gold Fields. In our F2008
ounces in the fi rst quarter of F2009, largely
annual report, I said that we had crossed a
because of
the production
interruptions
watershed in our approach to safety and I made
mentioned above, as well as a delay in the
a commitment that “if we cannot mine safely,
completion of certain growth projects, we had
we will not mine”. During F2009 we bedded
a steady improvement in quarterly production
this down as our single most important value,
6. Delivery: We do what we say we will do.
for the remainder of the year, ending the
and the bedrock of the Gold Fields culture.
8
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
MESSAGE FROM THE CHIEF EXECUTIVE OFFICER
continued
Towards this end, we had to make a number
of very difficult decisions during the past
year, including several instances where we
suspended production in the interest of safety.
While these interventions came at a significant
opportunity cost in lost production and revenue,
it was a cost that we accepted without hesitation
in the interest of the safety of our people and
the long-term sustainability of our business. The
net result is that we have seen a step change
in our overall safety performance with all safety
indicators showing a considerable improvement
over the year. In particular, the number of
fatalities on our mines declined by more than
55 per cent from 47 in F2008, to 21 in F2009.
While this represents a vast improvement,
I deeply regret each one of these fatalities,
and it remains my personal objective, and that
32,000 tons of copper per year, and will make
a meaningful contribution to Gold Fields in
the future. The well-known gold regions of
South America feature prominently on Gold
Fields’ radar screen for future expansion, and
I believe that Cerro Corona gives Gold Fields
an excellent foothold in this region.
(cid:115)(cid:0) (cid:33)(cid:84)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:52)(cid:65)(cid:82)(cid:75)(cid:87)(cid:65)(cid:0)(cid:39)(cid:79)(cid:76)(cid:68)(cid:0)(cid:45)(cid:73)(cid:78)(cid:69)(cid:0)(cid:73)(cid:78)(cid:0)(cid:55)(cid:69)(cid:83)(cid:84)(cid:0)(cid:33)(cid:70)(cid:82)(cid:73)(cid:67)(cid:65)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)
expansion of the Carbon-in-Leach (CIL) plant
was completed, as planned, by the end of
December 2008. While production build-up
of the expanded mill is slower than initially
anticipated due to some commissioning
delays, it is expected to produce at its design
capacity of approximately one million tons of
ore per month, on a sustainable basis, during
F2010. Together with the significant volumes
through the heap leach operation, Tarkwa
should sustain approximately 750,000
ounces of production a year, for many years
of every person in Gold Fields, to eliminate all
to come.
serious and fatal accidents on our mines. While
this is a profound commitment to make in an
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Cave Rocks underground mines reached
In South Africa we have completed
the
separation of the corporate and the South
African regional offices. The corporate office
is now half the size that it was in the past,
while the South African regional team is now
housed together in its own separate regional
office, closer to the nexus of the South African
mines on the West Wits Line. This separation
has resulted in a greater focus by the South
African team on the main strategic initiatives
that are being put in place at the various South
African operations, while the more streamlined
corporate office is better positioned to execute
its mandate of Group related functions.
The fifth key milestone achieved during
F2009 was the progress made with the South
Deep Gold Mine in South Africa. Following a
comprehensive, external review of this project
between August 2008 and January 2009, we
now have greater confidence in the overall
integrity of this project, and its ability to deliver
industry that is characterised by high levels of
full production mid-way through F2009,
exceptional value
to our shareholders
for
risk, especially in the seismically active deep
providing a foundation for an improved
approximately the next fifty years. The purpose
level mining environment in South Africa, it is a
operational performance.
of the review was to answer three key questions:
moral and commercial imperative for the future
What is the full production capacity of South
existence of our industry. I am confident that
The fourth key milestone achieved during
Deep? How long will it take to achieve? How
I have the unwavering support of the Board of
F2009 was the implementation and roll-out of
much will it cost? At full production, South Deep
Directors, the executive, all of the employees,
and the vast majority of the shareholders of
Gold Fields. I describe the specific safety
interventions in more detail in the health and
safety section of this message.
The second key milestone, which is closely
related to the one of safety described above,
was the successful completion of the critical
safety related rehabilitation of infrastructure at
our South African operations, as well as the
completion of the secondary support backlog
at these operations, which we described in
some detail in the F2008 annual report.
The third key milestone was the completion
of our international growth projects, as planned.
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completed during December 2008. This is
now a world-class mine and is operating
sustainably at
its design capacity of
approximately 140,000 ounces of gold and
our new regionalisation strategy that I mentioned
in my report last year. This strategy is aimed at
transforming Gold Fields from its centralised
structure
to a more dynamic, networked
should produce approximately 750,000 ounces
to 800,000 ounces of gold per year; it should
achieve this by December 2014; and it should
cost approximately R8.5 billion in real terms to
structure, centred on the four regions of the
world in which Gold Fields has an operational
complete.
presence, and in which we aim to grow. Each
of the regions, South Africa, West Africa, South
America and Australasia, is moving through a
process of building-up to greater accountability
and responsibility for their operations and
growth ambitions. I am confident that each
of these regions will achieve the short- and
medium-term cost and production challenges,
as well as the medium-term growth targets that
have been set. The four- to five-year target in
South Africa is to produce between 2.2 and 2.5
million ounces of gold a year on a sustainable
basis, while a target of one million ounces per
annum of attributable production, either in
development or in production, has been set for
the management teams in each of West Africa,
South America and Australasia.
Regarding the near term, the re-commissioning
of part of the South shaft has been completed,
with single shift hoisting being planned for
the next year to support the reef and waste
tonnage build-up required for this mine to
achieve 300,000 ounces of gold production
during F2010, while simultaneously progressing
development rates that should enable the
mine to build to full production. The additional
mining fleet
required
for
the short-term
build-up has been acquired and the first
thirty years of the mining plan has been fully
re-modelled and scheduled. Work
is on
schedule to complete the ventilation shaft of the
Twin Shaft Complex by early 2012, which, along
with development, is a very important milestone
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
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to achieve full production of 330,000 tons of ore
per month at this operation.
On the operational
front, production
in
South Africa declined,
from 2.4 million
ounces
in F2008
to 2.0 million ounces
in F2009, mainly as a
result of
the
safety related production interruptions referred
to above. Following the completion of the
critical infrastructure rehabilitation during the
It remains a key strategic objective of Gold Fields to
reduce notional cash expenditure and increase free
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At the South African operations the NCE
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increased from US$676 per ounce (R157,972
venture partner, Glencar Mining Plc, moving
per kilogram) in the previous year to US$734 per
ahead with an exciting new exploration project
ounce (R212,629 per kilogram) this year. The
combined West African, South American and
first half of the year, the operational teams
Australasian operations achieved NCE
for
have been focused on bringing greater stability,
F2009 of US$800 per ounce (R231,670 per
predictability and consistency to the operations,
kilogram), against last year’s US$757 per ounce
and positioning the region to again build-up,
(R176,909 per kilogram).
over the next year, to a production range of
approximately 550,000 to 575,000 ounces of
We continue to be the only gold mining
gold per quarter on a sustainable basis. While
company to report NCE.
progress towards this goal has continued
during the second half of the year, the build-up
During the fourth quarter of F2009 we impaired
was impeded by a lack of flexibility caused by
our holding
in associate, Rusoro Mining
the focus on the backlog secondary support,
Limited, in terms of the applicable accounting
standard. The impairment charge amounted to
R1.1 billion (US$118 million). This impairment
does not reflect management’s view of the
in the south of Mali, known as the Sankarani
Project. After the reporting period covered in
this report, Gold Fields made a successful
offer to acquire the entire issued share capital
of Glencar which, if successful, will give Gold
Fields full ownership of this project as well as
its advanced Komana project.
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recent drilling by our joint venture partner,
Compania de Minas Buenaventura, has
intersected significant gold with copper
grades associated with a breccia-hosted
deposit, and this resulted in approval being
given to resume a resource delineation
programme on this discovery.
which saw development crews redeployed
from development
into backlog secondary
support. This situation is in the process of being
remedied and ore reserve development has
been designated as the second highest priority
for F2010, second only to safety.
At the international operations total managed
gold production increased from 1.5 million
ounces in F2008 to 1.7 million ounces in F2009
as a result of the inclusion of 219,000 gold
equivalent ounces from the newly completed
Cerro Corona mine. This production increase
was partially offset by a five per cent reduction in
production at Tarkwa.
As indicated in the F2008 annual report, it
remains a key strategic objective of Gold Fields
to reduce notional cash expenditure (NCE)
and increase free cash flow. NCE is defined
as operating costs
(including general and
administration costs) plus capital expenditure,
which includes brownfields exploration. The
Group’s NCE for the year ended 30 June 2009
amounted to US$763 per ounce (R221,153 per
value inherent in Rusoro, which has reserves of
(cid:115)(cid:0) (cid:41)(cid:78)(cid:0)(cid:43)(cid:89)(cid:82)(cid:71)(cid:89)(cid:90)(cid:83)(cid:84)(cid:65)(cid:78)(cid:12)(cid:0)(cid:87)(cid:69)(cid:0)(cid:65)(cid:82)(cid:69)(cid:0)(cid:65)(cid:68)(cid:86)(cid:65)(cid:78)(cid:67)(cid:73)(cid:78)(cid:71)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:52)(cid:65)(cid:76)(cid:65)(cid:83)(cid:0)(cid:74)(cid:79)(cid:73)(cid:78)(cid:84)(cid:0)
2.0 million ounces and resources of 14.1 million
ounces.
venture with Orsu Metals Corporation, where
we are obtaining a better understanding of
the ore body following the recognition of at
There were some exciting developments
least three phases of mineralisation through
on the growth front during F2009. At Gold
various exploration activities. This project is
Fields we see our growth coming primarily
in a new frontier for Gold Fields.
from exploration success, both near mine
It is well endowed, yet under-explored and has
and greenfields. While we do not discount the
possibility of acquisitions, it is difficult to make
accretive purchases in the current environment.
We have therefore, during the year under
review, increased our exploration activity around
the globe and we now have over 30 exploration
drill rigs operating in eleven countries: Australia,
Ghana, Peru, Mali, Chile, Democratic Republic
of Congo (DRC), Dominican Republic, China,
USA, Indonesia and Kyrgyzstan, and we drilled
442,261 metres in F2009.
Interestingly, for the first time in Gold Fields’
history, we currently have
three highly
significant mineralisation potential.
The uranium project, which we now refer to as
our “fifth mine” in the South African portfolio, is
also progressing rapidly and our feasibility study
is expected to be completed early in 2010.
This project is defining the economic potential
of processing a select number of our historic
surface tailings dams at the Driefontein, Kloof
and South Deep mines in South Africa, as well
as current arisings from underground mining at
these mines, for the recovery of uranium and
related by-products of gold and sulphuric acid.
kilogram), which compares with the US$796 per
prospective
advanced
stage
exploration
In addition we have a number of very exciting
ounce (R186,088 per kilogram) for last year.
projects underway at the same time, at least
near mine growth opportunities at several of our
These figures include all sustaining capital as
one of which we expect to progress to a pre-
mines around the world. These are described in
well as capital expenditure for growth projects.
feasibility study within the next 12 months.
the growth section below.
10
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
MESSAGE FROM THE CHIEF EXECUTIVE OFFICER
continued
Our share price performance over the last year
largely refl ected our operational performance,
and can be described as “a tale of two halves”.
Together with the rest of the world’s markets,
we experienced a signifi cant decline in our
share price in the fi rst half of the fi nancial year,
reaching the year’s low of R54.00 (US$4.64) a
share in September 2008. However, our share
One million fatality free shifts has been achieved at
Kloof, South Deep and at Beatrix, and two million
fatality free shifts at Driefontein.
important way in which we will continue to build
price increased strongly in the second half to
our track record and, in doing so, differentiate
end the year at R93.52 (US$12.05) a share, a
our company from our peers.
gain of 73 per cent in rand terms from the low
point during the year. The turbulent fi nancial
market resulted in the investment community
HEALTH AND SAFETY
Gold Fields’ health and safety philosophy
being more circumspect on how they approach
is premised on our commitment that “if we
investment decisions, and
they are now
cannot mine safely, we will not mine”, and
largely focusing on stability, predictability and
on our objective of achieving a zero harm
consistency in companies, which we have also
working environment for all of our people. This
made our operational mantra. Taking a selection
philosophy is informed, fi rst and foremost, by
of major gold producing companies among
the fact that there is no price to be placed on
Gold Fields’ peer grouping and comparing
human health and safety, and by the economic
share price performance over our last fi nancial
reality that a stable, predictable and consistent
year (see graph below), we delivered a very
operational performance is not possible in an
creditable performance, near the top-end of the
environment constantly plagued by accident
spectrum, which, I believe, indicates that the
induced interruptions to operations.
market is regaining confi dence in our ability to
deliver.
We remain fully aware that the realisation of
our safety objectives will materialise only as a
In summary, F2009 has been a year focused
result of a sustained and ongoing effort. This
on improving safety, fi xing up our production
objective, which is the number one priority in
machine, and returning a sense of stability,
the company, can only be achieved if we have
predictability
and
consistency
to
the
a tripartite approach to change involving every
our unions and employee representative bodies,
and the government. It is pleasing to report that
over the year these key stakeholder groupings
have realised that we are serious about placing
safety ahead of production and that we are
willing and able to make bold and courageous
decisions when it comes to ensuring that no
harm comes to any of our people. This, in my
opinion, is one of the main reasons why we
have seen a step change in safety over the past
year.
increased
The
focus on safety across all
levels of injury prevention has led to signifi cant
improvements across the board: Fatal Injury
Injury Frequency
Frequency Rate; Serious
Rate and Lost Day Injury Frequency Rate. The
Group’s all important Fatal Injury Frequency Rate
continues to trend downwards with the year’s
rate being 0.13 versus last year’s 0.29 per million
man hours worked. This represents a 55 per
cent improvement year on year. The Serious
Injury Frequency Rate has decreased from
4.03 per million man hours worked to 2.82 per
million man hours worked, which represents a
performance of Gold Fields. This is the most
employee in our organisation, the leadership of
30 per cent improvement. The Lost Day Injury
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150
120
90
60
30
100
Harmony
Newmont
GoldCorp
Barrick
AngloGold
Gold Fields
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completed a Group-wide safety review by
their induction, or re-induction sessions. The
industry leaders DuPont, which I mentioned in
rules work hand-in-hand with other initiatives like
last year’s report. The purpose of this review
the ‘Stop, Think, Fix, Verify and then Continue’
Frequency Rate decreased to 4.35 per million
man hours worked, which represents a 43 per
cent improvement.
At the South African operations, one million
fatality free shifts were achieved at Kloof, South
Deep and at Beatrix, and two million fatality free
shifts were achieved at Driefontein, while the
operations in West Africa, South America and
Australasia operated for the full year without
any fatalities. South Deep has to date mined for
15 months without a fatality, while Driefontein
operated for eight months without a fatality,
which proves that it can be done.
Although we have made significant strides in
our quest to ensure a culture where the safety
of everyone at Gold Fields is of the utmost
importance, we know that simply doing more
of the same is not going to move us forward.
With this in mind, during the year we have
was twofold and included:
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management system and culture better; and
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achieve safety improvement objectives.
Systems, rules and procedures, as well as
personal beliefs and values, largely direct
behaviours. This is precisely why we included
a safety perception survey in the DuPont review
that was used to uncover the internal beliefs
and perceptions of our people regarding safety.
In South Africa, the outcomes of the DuPont
review have resulted in a focused project termed
Safe Production Management. This is now well
underway, with dedicated resources, to ensure
that the South Africa Region has an optimal
health and safety culture and performance in
the years ahead.
At
the West Africa, South America and
Australasia operations, the assessment of each
mine has culminated in the drafting of action
plans to address opportunities for improvement.
Many of these action plans have already been
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Housing Programme in the communities of
Glenharvie and Blybank on the West Rand in
South Africa.
implemented while the remainder will be fully
developed and implemented in the early stages
of the 2010 financial year.
care, safety, sport and recreation, and learning.
During F2010 this programme will also be rolled
out to all of our international operations.
The Safe Production Rules, which have
In June 2009, Gold Fields officially opened
been introduced to employees globally, were
its new Employee Housing Programme in the
developed through a comprehensive analysis
of all historical safety incidents, and seek to
reinforce the Gold Fields Health and Safety
Policy, and to pursue our ultimate objective of
zero harm. These rules also serve as an integral
part of the training and orientation processes on
all of our mines. All new employees, contractors
and employees returning from annual leave are
exposed to the Safe Production Rules during
campaign, which has had a tremendous impact
on employees’ safety behaviour and awareness.
Good safety management remains essential to
Gold Fields’ business. It is now the cornerstone
of everything we do and the people of Gold
Fields, as well as all our stakeholders in the
form of contractors, suppliers and unions, must
be congratulated for the manner in which they
have embraced our new safety philosophy.
Without the cooperation and commitment of
every member of our team globally, we would
not have achieved the improvements that we
have seen so far.
However, while we have made significant
progress in the past year, we are acutely aware
of the fact that much remains to be done.
communities of Glenharvie and Blybank on the
West Rand in South Africa. This programme
consists of 192 family homes which will be
occupied by employees of the Driefontein and
Kloof gold mines.
SUSTAINABLE DEVELOPMENT
To achieve the Gold Fields objective of operating
in a manner that represents a platform for
responsible investment, we have integrated
sustainable development considerations into
the corporate and operational decision-making
processes of the organisation. The result that
we are striving towards is an appropriate
balance between the Group’s requirements
to perform financially, achieve world-class
standards in environmental management, and
the desire and need to ensure broad social
benefit. This approach of viewing sustainable
development as an integral part of our business
also informs the structure of this annual report
to our stakeholders – incorporating financial,
social and environmental reporting
into a
single report.
In
last year’s
report we mentioned
the
progress being made towards a Sustainable
Development Framework for Gold Fields. It is
pleasing to report that this Framework has now
been fully developed and implemented. Many of
We have introduced a new programme in
the best practices enshrined within the various
South Africa, called “24 Hours in the Life of a
Gold Fields Employee”. This programme, which
is based on the total well-being philosophy
and is aimed at improving every facet of the
lives of our people, includes interventions in
the fields of living conditions, nutrition, health
sustainable development principles are not new
to us at Gold Fields. For many years we have
implemented policies and protocols in support
of the various components of sustainable
development. As a result, the consolidation of
our existing approaches with new knowledge
12
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MESSAGE FROM THE CHIEF EXECUTIVE OFFICER
continued
and best practices gleaned from the work of,
inter alia, the International Council on Mining
and Metals (ICMM), of which Gold Fields is a
member, presented a unique opportunity for
all operations to share their knowledge and
facilitate the process of cross pollination.
HUMAN RESOURCES
The availability of appropriate skills, across the
spectrum of disciplines, remains one of the
most significant challenges we face in all of the
countries in which we operate. While the pull-
back that we have seen in the commodities
sector globally has brought some reprieve, the
medium- to long-term outlook remains one of
grave concern.
To address this matter we have had to embark
on a number of innovative new approaches
to the attraction and retention of skilled
employees. At Gold Fields we believe in “hiring
for attitude and training for skills”. Our efforts are
focused on attracting the right people, training
for the right skills, ensuring job satisfaction,
providing career path progression opportunities
and, in the final instance, offering competitive
remuneration.
During the year we have restructured and
refocused the Gold Fields Leadership Academy
to ensure that it is better positioned to meet
the skills demand of, in particular, our South
African operations over the next decade.
I am pleased with the renewed vigour that
we are seeing in the ongoing education and
training efforts throughout the Group and we
continue to look at and implement innovative
new interventions in this field. We place a high
premium on education and training because it
is a fundamental building block for continuous
improvement, not only in the production arena,
but also in our safety performance. A key focus
of all of our education and training interventions
is the development of the leadership skills of
our people.
to
to our approach
the
Fundamental
management of our people is a strategic shift
away from the historic focus on improved
to an
productivity
approach of mobilising our existing employees
rationalisation,
through
It is pleasing to report that Gold Fields’ balance
sheet remains strong, which provides greater
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pursue new opportunities.
current environment that greater job security
and stability for our people will, in the longer
term, benefit our employees, our company and
the various countries in which we operate.
OPERATIONAL RESULTS
Group attributable gold production decreased
by six per cent from 3.64 million ounces for the
year ended June 2008 to 3.41 million ounces
for the year ended June 2009.
At the South African operations gold production
decreased
from 2.42 million ounces
to
2.04 million ounces. Driefontein’s gold
production decreased by 11 per cent from
0.93 million ounces to 0.83 million ounces
due
to a decrease
in volumes mined,
associated with safety stoppages and the
infrastructure rehabilitation projects referred to
in the introduction of this report. At Kloof, gold
production decreased by 22 per cent from
0.82 million ounces to 0.64 million ounces due
to the Main shaft refurbishment project and
safety related mine stoppages. Beatrix’s gold
production decreased by 11 per cent from
0.44 million ounces to 0.39 million ounces
due to lower mining volumes, limited flexibility
and lower than planned quality mining factors.
South Deep’s gold production decreased by
25 per cent from 0.23 million ounces to
0.17 million ounces due to the termination of
conventional Ventersdorp Contact Reef (VCR)
mining because of the geological structure and
the stoppages related to the rehabilitation of the
two main access ramps during the first quarter
of the year under review.
At the international operations total managed
gold production increased from 1.46 million
ounces for the year ended June 2008 to
1.65 million ounces for the year ended June
2009. The main reason for this increase was the
from the newly completed Cerro Corona mine,
which was not included in the previous year.
Damang’s gold production increased by three
per cent to 0.20 million ounces. Tarkwa was five
per cent down at 0.61 million ounces, mainly
due to commissioning issues at the new CIL
plant, which affected the whole plant. St Ives
increased by three per cent from 0.42 million
ounces to 0.43 million ounces. This was mainly
due to increased production at Argo and Cave
Rocks. Production at Agnew decreased by six
per cent to 0.19 million ounces, mainly due to
the depletion of the Songvang stockpiles.
Revenue increased by 26 per cent in rand
terms (increased two per cent in US dollar
terms) from R23,010 million (US$3,165 million)
to R29,087 million (US$3,228 million). The
33 per cent higher average gold price at
R253,459 per kilogram (US$875 per ounce)
compares with R190,623 per kilogram
(US$816 per ounce) achieved for the year
ended June 2008. The rand weakened from an
average rate of US$1 = R7.27 to US$1 = R9.01,
or 24 per cent, while the rand/Australian dollar
weakened by two per cent from an average rate
of A$1 = R6.52 to A$1 = R6.67.
Net operating costs, including gold-in-process
movements, increased by 26 per cent from
R13,969 million to R17,624 million, or two per
cent in dollar terms from US$1,922 million to
US$1,956 million. The increase was largely as
a result of the exchange rate movements of
R1,260 million, mainly due to the weaker rand;
the inclusion of Cerro Corona (R742 million or
US$82 million), which was not included in the
previous year; and increases in electricity costs
at the South African and Ghanaian operations.
Total cash cost for the Group increased from
R111,315 per kilogram (US$476 per ounce)
to R149,398 per kilogram (US$516 per ounce)
due to the above factors, combined with the
lower production.
to work more productively. We believe, in the
inclusion of 0.22 million gold equivalent ounces
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
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At the South African operations operating costs
increased by 14 per cent from R8,611 million
(US$1,184 million) for the year ended June 2008
to R9,840 million (US$1,092 million) for the year
ended June 2009. This was due to the annual
wage increases, the 25 per cent increase in
electricity costs and the increase in commodity
prices, partially offset by the cost saving initiatives
implemented during the year. Whereas power
supply was an operational issue last year, I believe
that the national electricity supplier is now better
equipped to ensure a reliable supply of electricity.
However, it remains critically important that a
Our goal is to grow Gold Fields from a four million
(cid:86)(cid:92)(cid:85)(cid:74)(cid:76)(cid:3)(cid:91)(cid:86)(cid:3)(cid:72)(cid:3)(cid:196)(cid:93)(cid:76)(cid:3)(cid:84)(cid:80)(cid:83)(cid:83)(cid:80)(cid:86)(cid:85)(cid:3)(cid:86)(cid:92)(cid:85)(cid:74)(cid:76)(cid:3)(cid:87)(cid:89)(cid:86)(cid:75)(cid:92)(cid:74)(cid:76)(cid:89)(cid:3)(cid:86)(cid:93)(cid:76)(cid:89)(cid:3)(cid:72)(cid:3)(cid:77)(cid:86)(cid:92)(cid:89)(cid:3)(cid:91)(cid:86)(cid:3)
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Earnings
excluding
exceptional
items,
We announced recently that agreement had
gains and
losses on
foreign exchange,
been reached in terms of which we have sold
financial
instruments,
losses of associates
our 19.9 per cent stake in Sino Gold Mining
after taxation and discontinued operations
Limited to Eldorado Gold Corporation for a total
amounted to R2,981 million (US$331 million)
consideration of approximately US$282 million,
for the year ended June 2009 compared with
paid
in Eldorado shares. On closing we
R2,939 million (US$404 million) for the year
received 48 Eldorado shares for every 100 Sino
national electricity conservation programme
ended June 2008.
Gold shares, resulting in Gold Fields holding
approximately seven per cent of the outstanding
be implemented, spanning industry as well as
other sectors. Such a programme will contribute
significantly to the equitable distribution of tariff
increases and the sustainability of supply. Total
cash costs at the South African operations
increased
from R109,117 per kilogram
to
R147,657 per kilogram as a result of the above
factors.
At
the
international operations, operating
costs, including gold-in-process movements,
increased by 45 per cent from R5,358 million
(US$737 million) for the year ended June 2008
to R7,784 million (US$864 million) for the year
ended June 2009. Of this increase, R742 million
(US$82 million) was as a result of the inclusion of
Cerro Corona (not included in the previous year),
while R1,260 million was as a result of exchange
rate movements. Added to this were the annual
increases in salaries and consumables at all the
international operations driven by the resource
boom and, at St Ives, the increase in the gold
price and volume linked third party royalty due
to the higher Australian dollar gold price.
BALANCE SHEET
It is pleasing to report that Gold Fields’ balance
shares of Eldorado on a fully diluted basis. On
3 September 2009, Gold Fields disposed of its
sheet remains strong, which provides greater
holding in Eldorado for a total consideration of
financial stability and, potentially, enables
CAD323 million, approximately US$293 million.
us
to pursue new opportunities. This
is
In the event of Eldorado concluding a take-over
also particularly important given the ongoing and
of Sino Gold within 18 months of the original
deepening liquidity crisis around the world.
transaction, Gold Fields will still receive a ‘top-
Today, most companies’ balance sheets are
up’ should a higher price be paid than the
under severe strain and I believe that the
original consideration.
strength in our financial position will stand us in
good stead should this financially constrained
During the past year most of the senior and
period continue for any length of time.
intermediate gold producers around the world
have capitalised on the positive sentiment
During
the year, Standard and Poor’s
towards the gold sector by accessing the equity
Ratings Service assigned Gold Fields with an
and equity-linked markets for funding. In the
investment grade rating that is an independent
absence of any significant downturn in the gold
endorsement of Gold Fields as an investment
market, Gold Fields believes that the equity or
grade company with a stable outlook. The rating
equity-linked markets should only be accessed
confirms aspects such as Gold Fields’ sound
for projects that are demonstrably accretive on
corporate governance and risk management,
a per share basis.
while aligning the Group with global best
practice. An official credit rating will allow
flexibility for the Group to efficiently structure
STRATEGY
As previously indicated, F2009 has been one
Operating profit
i.e. profit before amorti-
long-term debt as well as new debt, should the
of the most challenging years in the history
sation,
increased
from R9,041 million
need arise.
(US$1,244 million)
to
R11,463 million
(US$1,272 million). After accounting for taxation,
sundry costs and exceptional items, net earnings
As at 30 June 2009, Gold Fields had net debt
machine, while the second half was focused
of R6,092 million (US$756 million), comprising
on again increasing production closer to the
of Gold Fields. In essence the first half of the
year was dedicated to fixing up the production
amounted to R1,536 million (US$170 million),
R2,561 million (US$318 million) short- and
historical run-rate of approximately one million
compared with R4,458 million (US$613 million)
R6,335 million (US$786 million) long-term debt
ounces of production per quarter, at an NCE of
for the year ended June 2008. The main reason
for this variance was a R2.6 billion negative
movement on exceptional items, being mainly
a profit on the sale of Essakane of R1.4 billion
in F2008 and the impairment of Rusoro of
R1.1 billion in F2009.
with cash of R2,804 million (US$348 million)
approximately US$725 per ounce (calculated at
and a liquid investment portfolio, consisting
an exchange rate of US$1:R8.00). While we did
primarily of
investments
in
joint venture
not achieve the targeted run rate of one million
partners associated with our exploration
ounces of production per quarter as set out
portfolio, which was valued at R2,971 million
in our annual report for F2008, we did show
(US$369 million).
significantly
improved stability, predictability
14
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MESSAGE FROM THE CHIEF EXECUTIVE OFFICER
continued
and consistency, with production increasing
for the last three consecutive quarters of the
year, to end the year at 906,000 ounces of
attributable production in quarter four. This is
108,000 ounces or 14 per cent higher than
the production low-point of 798,000 ounces
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place and well positioned to lead the company into the
exciting new phase of growth.
reported in quarter one of F2009.
and a review of remuneration models, as well
course, stepping-up evaluation work on the
as by further enhancing our education and
more significant project areas.
During F2010 the strategic focus for Gold Fields
training initiatives.
will be to consolidate the operational gains
6. Further improve our performance in the
made during F2009 and to further ‘sweat’ our
field of sustainable development and, in
existing assets. In particular we aim to achieve
particular, improve our environmental record
the following strategic objectives:
wherever we operate.
7. Further entrench the regionalisation strategy
1. Further enhance our efforts on health and
by bolstering the executive teams in each of
safety. Our goal remains the total elimination
the regions, in order to drive the operational
of all serious and fatal accidents on all of our
performance of the regions and to advance
operations.
our growth strategy.
2. Open up our ore bodies by stepping up
development. This has become particularly
urgent in South Africa where the focus
GROWTH STRATEGY
Our strategy is focused on growth in ounces
on catching-up the backlog in secondary
per share and returns on a per share basis.
support over
the past year has seen
This comes down to ‘sweating’ our assets and
resources diverted away from development.
leveraging our large resource and reserve base.
As a result, flexibility has been affected, as
we suspected it would. The target is to have
With this discipline in mind, our goal is to grow
at least 24 months of opened up reserves at
Gold Fields to five million ounces over a four
each of our long-life shafts. Improved flexibility
to five year time horizon, with South Africa
will also help us to get closer to our targeted
producing approximately 2.2 to 2.5 million
production run-rate, on a sustainable basis.
ounces and each of our international regions
3. Build momentum at the South Deep Project
(South America, West Africa and Australasia)
by increasing production to approximately
producing approximately one million attributable
300,000 ounces
for
the year, while
ounces per year.
advancing
the Twin Shaft
infrastructure
for completion in F2012 and focusing on
We aim to work towards this goal by advancing
the development of the ore body below
our
regionalisation strategy and growing
95-level, which will facilitate the ultimate
organically by
leveraging off our existing
build-up to full production of approximately
production footprints in West Africa, South
750,000 to 800,000 ounces per annum by
America, Australasia and South Africa.
December 2014.
4. Achieve greater stability, predictability and
Exploration remains the most cost effective way in
consistency in our quarterly production. We
which to grow a gold mining company. Through
are working towards our goal of producing at
our various exploration programmes we are
a run-rate of between 925,000 and 950,000
discovering new gold ounces for less than US$20
ounces of gold per quarter during F2010.
per ounce and, in the past year, Gold Fields has
Turning now to our near mine exploration
activities, there is significant opportunities for
creating value as our exploration teams are
working in and around existing operations and
infrastructure, and costs are therefore lower than
they would be in a totally greenfield environment.
(cid:115)(cid:0) (cid:33)(cid:84)(cid:0) (cid:51)(cid:84)(cid:0) (cid:41)(cid:86)(cid:69)(cid:83)(cid:0) (cid:73)(cid:78)(cid:0) (cid:55)(cid:69)(cid:83)(cid:84)(cid:69)(cid:82)(cid:78)(cid:0) (cid:33)(cid:85)(cid:83)(cid:84)(cid:82)(cid:65)(cid:76)(cid:73)(cid:65)(cid:12)(cid:0) (cid:68)(cid:82)(cid:73)(cid:76)(cid:76)(cid:73)(cid:78)(cid:71)(cid:0) (cid:79)(cid:70)(cid:0)
to deliver
the Athena project continues
exceptional gold grades, and at the Hamlet
target, diamond drilling has returned intercepts
at sufficiently high grade to define a reserve.
Together these two projects have the potential
to add more than two million ounces to the
resource base of St Ives and possibly double
the life of this mine. Resources and reserves
for both of these projects are included in the
Mineral Resource and Reserve statement that
is part of this report.
(cid:115)(cid:0) At Agnew, also in Western Australia, surface
drilling in the Redeemer – Waroonga gap has
intersected a stratigraphic package including
narrow zones of mineralisation. This exciting
new development, together with additional
potential at the Waroonga underground
complex, has the potential to increase the life
of this mine to as much as 10 years or more.
(cid:115)(cid:0) (cid:33)(cid:84)(cid:0) (cid:36)(cid:65)(cid:77)(cid:65)(cid:78)(cid:71)(cid:0) (cid:73)(cid:78)(cid:0) (cid:39)(cid:72)(cid:65)(cid:78)(cid:65)(cid:12)(cid:0) (cid:69)(cid:88)(cid:84)(cid:69)(cid:78)(cid:83)(cid:73)(cid:79)(cid:78)(cid:65)(cid:76)(cid:0) (cid:68)(cid:82)(cid:73)(cid:76)(cid:76)(cid:73)(cid:78)(cid:71)(cid:0)
below the Juno pit and southwards for
700 metres on
the Tamang prospect
intersected veining within 150 metres of surface
and outside any resource shells. Similarly,
favourable indications continue to come out of
the Amoanda – Tomento East gap and veining
has been located within 30 metres of surface
200 metres south of Tomento East.
I believe that, beyond F2010, achieving one
laid the foundation for what will hopefully turn out
(cid:115)(cid:0) (cid:41)(cid:78)(cid:0)(cid:48)(cid:69)(cid:82)(cid:85)(cid:12)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:35)(cid:79)(cid:78)(cid:83)(cid:79)(cid:76)(cid:73)(cid:68)(cid:65)(cid:68)(cid:65)(cid:0)(cid:68)(cid:69)(cid:0)(cid:40)(cid:85)(cid:65)(cid:76)(cid:71)(cid:65)(cid:89)(cid:79)(cid:67)(cid:0)(cid:21)(cid:16)(cid:26)(cid:21)(cid:16)(cid:0)
million ounces per quarter is realistic.
to be significant success in the future.
5.
Increase
the skills
level across
the
joint venture between Gold Fields La Cima
and Buenaventura (NYSE: “BVN”) is in the
organisation by improving our ability to
Exploration expenditure
in F2009 was
final stage of the approval process with the
attract and retain key personnel through a
US$90.2 million. This expenditure reflects the
communities for drilling access to the Titan-
more aggressive programme of recruitment,
high quality of projects in our pipeline and, of
Arabe copper-gold target.
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
15
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We are very fortunate that we now have
annum. This change to the structure will allow
term floor for the price of gold. While one can
a portfolio of exploration assets which is
greater executive focus on the very specific
be almost certain that gold would from time
complementary to our existing asset base,
demands of each of our international regions.
to time test this level on the downside, it has
and will allow Gold Fields to achieve its stated
Ben Zikmundovsky has been appointed
real potential to move above that level over the
growth ambitions.
as Executive Vice President and Head of
longer term.
International Capital Projects and International
During F2010 our strategic growth objectives are:
Technical Services. This is a new position
created
to
take responsibility
for project
1. To proceed at least one of our advanced
development in our international portfolio,
stage exploration projects to conceptual
as well as the international technical group.
study stage;
Ben joined Gold Fields on 1 August 2009 and is
2. To complete the uranium feasibility study in
a member of the Group Executive Committee.
South Africa by early 2010;
3. To advance the phase 2 expansion of the
The Gold Fields senior executive team is now
Cerro Corona mine in Peru;
firmly in place and well positioned to lead the
4. To complete
the
feasibility study and
company into the exciting new phase of growth
commence construction of the Athena
that lies ahead over the next few years.
discovery at St Ives; and
5. To continue drilling and development at
South Deep.
MANAGEMENT CHANGES
In January 2009, Paul Schmidt was appointed
THE GOLD MARKET
Considering the economic challenges over
the past year, it has been a stimulating time in
the industry. Gold has showed its resilience by
being a refuge for a financial community that
Chief Financial Officer, and during the latter
has been constrained in almost every other
part of the financial year, we announced a
investing sector.
reorganisation and further strengthening of our
DIVIDEND
Gold Fields is continuing its dividend paying
policy and in so doing is maintaining its
position as the highest dividend payer in
the industry. Notwithstanding the difficulties
in financial markets, and a commitment to
various growth initiatives, an interim dividend of
R0.30 per share was declared on 29 January 2009
and paid on 23 February 2009. A final dividend
of R0.80 per share was declared on 6 August
2009 and paid on 31 August 2009.
CONCLUSION
This past year has seen many thousands of
people, which include employees, members
of governments, and representative labour
organisations as well as our business partners,
contributing to re-building our great company.
I hope I have provided some insight into the
activities we are implementing and challenges
we face, to achieve our objective of continuing
executive team.
Gold is now emerging, once again, as an asset
to deliver value for all our stakeholders into
class in many investment portfolios, which
the future.
The South Africa Region will continue to be
is the single most important underpin of the
led by Vishnu Pillay and, in line with our new
current gold price. It continues to be a ‘safe
regionalisation strategy, the international portfolio
haven’ investment and there is every reason to
has been split into three separate portfolios.
believe that gold will continue to be supported
Each of these regions is now the responsibility
as the world struggles to recover from the
of a dedicated regional executive vice president,
financial turmoil of the past 18 months. Leading
all of whom are also members of the Group
indicators point to global gold production that
Executive Committee.
continues to decline, central banks (mainly
(cid:115)(cid:0) (cid:52)(cid:72)(cid:69)(cid:0) (cid:33)(cid:85)(cid:83)(cid:84)(cid:82)(cid:65)(cid:76)(cid:65)(cid:83)(cid:73)(cid:65)(cid:0) (cid:50)(cid:69)(cid:71)(cid:73)(cid:79)(cid:78)(cid:0) (cid:73)(cid:83)(cid:0) (cid:72)(cid:69)(cid:65)(cid:68)(cid:69)(cid:68)(cid:0) (cid:85)(cid:80)(cid:0) (cid:66)(cid:89)(cid:0)
China and Russia) being net buyers of gold,
Glenn Baldwin;
and investment demand continuing to grow
(cid:115)(cid:0) (cid:52)(cid:72)(cid:69)(cid:0) (cid:55)(cid:69)(cid:83)(cid:84)(cid:0) (cid:33)(cid:70)(cid:82)(cid:73)(cid:67)(cid:65)(cid:0) (cid:50)(cid:69)(cid:71)(cid:73)(cid:79)(cid:78)(cid:0) (cid:73)(cid:83)(cid:0) (cid:72)(cid:69)(cid:65)(cid:68)(cid:69)(cid:68)(cid:0) (cid:85)(cid:80)(cid:0) (cid:66)(cid:89)(cid:0)
exponentially, especially through the various
Peter Turner; and
exchange traded funds. Europe’s Central Banks
(cid:115)(cid:0) (cid:52)(cid:72)(cid:69)(cid:0)(cid:51)(cid:79)(cid:85)(cid:84)(cid:72)(cid:0)(cid:33)(cid:77)(cid:69)(cid:82)(cid:73)(cid:67)(cid:65)(cid:0)(cid:50)(cid:69)(cid:71)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:83)(cid:0)(cid:72)(cid:69)(cid:65)(cid:68)(cid:69)(cid:68)(cid:0)(cid:85)(cid:80)(cid:0)(cid:66)(cid:89)(cid:0)
have also jointly announced lowering the gold
Juan Luis Kruger.
sales quota by 20 per cent to 400 tons of gold
Each of the regional Executive Vice Presidents
a year.
is responsible for all operational matters in
As I mentioned last year, one of the most
their respective regions and will also work with
significant underpins to the price of gold is
the business development and exploration
the real all-in cost of producing an ounce of
executives
to achieve our medium-term
gold which we estimate to be in the order of
The progress that we have made over the last
year is very much an indication of the spirit
and commitment of all of our people across
the world. I would like to take this opportunity
to thank the entire Gold Fields team for their
diligence, support, enthusiasm and unstinting
commitment that has enabled us to achieve our
milestones during F2009.
Finally,
I extend my appreciation
to our
Chairman and the Board of Directors for
entrusting our executive
team and
the
operational management teams on each of our
mines with the opportunity to build a company
that is determined to become “the global leader
in sustainable gold mining”.
objective of growing production in each of the
approximately US$700 to US$800 per ounce
Nick Holland
international regions to a million ounces per
globally. This should provide a natural long-
Chief Executive Officer
16
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
BOARD OF DIRECTORS
Alan J Wright (68)°
Nicholas J Holland (50)*
Kofi Ansah (65)°
Chairman
CA(SA)
Mr Wright was appointed the Non-Executive
Chairman of the Board on 17 November
2005. Prior to that, Mr Wright had been
Deputy Chairman of Gold Fields since
November 1997. Prior to September 1998,
Mr Wright was the Chief Executive Offi cer of
Gold Fields of South Africa Limited. Mr Wright
holds no other directorships.
Chief Executive Offi cer
BComm, BAcc, Witwatersrand; CA(SA)
Mr Holland has been a Director of Gold
Fields since 14 April 1998 and became Chief
Executive Offi cer on 1 May 2008. He served
as Executive Director of Finance from April
1998. On 15 April 2002, his title changed
to Chief Financial Offi cer until 30 April 2008.
Prior to joining Gold Fields, he was Financial
Director and Senior Manager of Corporate
Finance of Gencor Limited. He is also an
Alternate Director of Rand Refi nery Limited.
BSc (Mech Eng) UST Ghana; MSc (Metallurgy)
Georgia Institute of Technology, USA
Mr Ansah was appointed a Director in April
2004. He is a Director of Ecobank (Ghana)
Limited and Aluworks Limited.
John G Hopwood (61)°
BComm, CA(SA)
Mr Hopwood was appointed a Director on
15 February 2006. Previous experience
includes being a Director and Head of
the Mergers and Acquisitions division at
Ernst & Young Corporate Finance. He was
an Executive Director of Gold Fields of
South Africa Limited from January 1992 to
September 1998. Mr Hopwood is a member
of the Board of Trustees of the New Africa
Mining Fund and Chairman of the Fund’s
Investment Committee, and Non-executive
Director of Pan African Resources Plc.
Richard (Rick) P Menell
(54)°
BA (Hons), MA (Natural Sciences, Geology)
Trinity College, Cambridge, UK; MSc.
(Mineral Exploration and Management)
Stanford University, California, USA
Mr Menell was appointed a Director of
Gold Fields on 8 October 2008. Previously,
he has been the President and Member
of the Chamber of Mines of South Africa,
President and Chief Executive Offi cer of
TEAL Exploration & Mining Inc and Executive
Chairman of Anglovaal Mining Limited and
Avgold Limited. He is a Director of Weir Group
Plc and various other companies.
David N Murray (64)°
BA Hons Econ; MBA, University of Cape Town
Mr Murray joined the Board on 1 January
2008. He has more than 36 years’ experience
in the mining industry and has been Chief
Executive Offi cer of Rio Tinto Portugal, Rio
Tinto Brazil, TVX Gold INC, Avgold Limited
and Avmin Limited. He is a Non-Executive
Director of Ivernia Inc.
* Executive director
° Non-executive director
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
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Cheryl A Carolus (49)°
Roberto Dañino (58)°
Alan Hill (66)°
BA Law, Bachelor of Education, University of
the Western Cape
Master of Law (Harvard Law School)
Pontifi cia Universidad Católica del Perú
BSc (Hons), MPhil (Rock Mechanics), Leeds
University, UK
Ms Carolus was appointed as Director on
joined the
10 March 2009. Ms Carolus
United Democratic Front (UDF) in 1983. She
was National Co-ordinator of the UDF from
1985 to 1990. In May 1990, Ms Carolus was
elected to be part of the African National
Congress (ANC) delegation which held talks
with the apartheid government, and in July
1991, she was elected to the ANC’s National
Executive Committee. From 1994 to 1997
she was Deputy Secretary General of the
ANC and from 1997 to 1998 acting Secretary
General. In 1998, she became South Africa’s
High Commissioner to London. Between
2001 and 2004, she was the Chief Executive
Offi cer of SA Tourism (SATOUR). She served
as chairperson of the South African National
Parks Board for six years. She is also
Executive Chairperson of Peotona Holdings,
an investment company that deals with
business development.
Mr Dañino was appointed a Director on
10 March 2009. He serves on various
corporate and non-profi t boards, both in
Peru and USA, including Gold Fields La Cima
in Peru. Mr Dañino is a Peruvian lawyer who
has practised for over 30 years as a partner
of leading law fi rms in Lima and Washington,
DC. He has signifi cant experience throughout
Latin America, as well as in the USA and
the UK. Mr Dañino has served as Prime
Minister of Peru and Ambassador to the
USA. He has been Vice President and
General Counsel of the International Centre
for settlement of Investment Disputes. He
was also the founding General Counsel of
the Inter-American Investment Corporation in
Washington, DC, the private sector affi liate of
Inter-American Development Bank.
Mr Hill was appointed a Director of Gold
Fields on 21 August 2009. He also serves
on the board of Gabriel Resources and until
recently was Chairman of Alamos Gold. Both
companies are involved in gold exploration and
development. Mr Hill’s mining career started
on the Zambian Copperbelt, following which
he joined Noranda where he managed gold
and nickel mines. He worked as a consultant
for a short period, before joining Camfl o Mines
in 1981, which merged with Barrick Gold
in 1984. Mr Hill joined Barrick as part of the
merger and spent 19 years with Barrick and
was instrumental in its considerable growth,
having played a pivotal role in its various
merger and acquisition initiatives through the
years. He retired from Barrick in 2003 as its
Executive Vice President: Development. Some
of his previous directorships include Yamana
Resources, Peru Copper and the Canadian
Council of the Americas.
Rupert L Pennant-Rea
(61)°
Chris I von Christierson
(61)°
BA, Trinity College Dublin; MA, University of
Manchester
Mr Pennant-Rea has been a Director of Gold
Fields since 1 July 2002. He is Chairman of
Henderson Group Plc and is a Director of
First Quantum Minerals, Go-Ahead Group,
Times Newspaper Limited and a number of
other companies. Previously he was Editor of
The Economist and Deputy Governor of the
Bank of England.
BComm, Rhodes; MA, Cambridge
Mr von Christierson has been a Director of
Gold Fields since 10 May 1999. As a result
of a takeover by Lundin Mining he stepped
down as the Chairman of Rio Narcea Gold
Mines Limited on 18 July 2007. He is
currently a Director of Southern Prospecting
(UK) Limited and Non-executive Director of
Platmin Limited.
Gayle M Wilson (64)°
BCom, BCompt (Hons); CA(SA)
Mrs Wilson was appointed a Director on
1 August 2008. She was previously an audit
partner at Ernst & Young for 16 years where
her main focus was on mining clients. In
1998 she was involved in AngloGold Ashanti
Limited’s listing on the NYSE and in 2001 she
took over as the lead partner on the global
audit. Other mining clients during her career
include Northam, Aquarius, Avmin (now ARM)
and certain Anglo Platinum operations. She
is a Non-Executive Director of Witwatersrand
Consolidated Gold Resources Limited.
Donald MJ Ncube (62)°
BA Economics and Political Science, Fort
Hare University; Post Graduate Diploma in
Labour Relations, Strathclyde University,
Scotland; Graduate MSc Manpower Studies,
University of Manchester; Diploma in Financial
Management
Mr Ncube was appointed a Director of Gold
Fields on 15 February 2006. Previously, he
was an Alternate Director of Anglo American
Industrial Corporation Limited and Anglo
American Corporation of South Africa Limited,
a Director of AngloGold Ashanti Limited as
well as Non-Executive Chairman of South
African Airways. He is currently Chairman of
Rare Holdings Limited, Chairman of Badimo
Gas, Executive Director of Cincinnati Mining
S.A., a Director of Manhattan Operations
Douglas, and he serves on the boards of
various other companies.
18
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
EXECUTIVE COMMITTEE
Nicholas (Nick) Holland
(50)
Chief Executive Offi cer
BComm, BAcc, Witwatersrand, CA(SA)
Mr Holland has been an Executive Director of
Gold Fields since 14 April 1998 and became
Chief Executive Offi cer on 1 May 2008. He
served as Executive Director of Finance from
April 1998. On 15 April 2002, his title changed
to Chief Financial Offi cer until 30 April 2008.
Prior to joining Gold Fields, he was Financial
Director and Senior Manager of Corporate
Finance of Gencor Limited. He is also an
Alternate Director of Rand Refi nery Limited.
Glenn Baldwin (37)
Italia Boninelli (53)
Executive Vice President: Head of Australasia
Region
BEng (Hons) Mining
Senior Vice President: Head of Human
Resources
MA, Witwatersrand, PDLR, Unisa SBL
Mr Baldwin was appointed Executive Vice
President: Head of Australasia on 1 May
2009. Prior to his appointment at Gold Fields
in 2007, Mr Baldwin was the Chief Operating
Offi cer at Ivanhoe Nickel & Platinum Limited.
After fi nishing his degree, Mr Baldwin spent
seven years in Australia developing his mining
skills. Coming to South Africa, he further
developed his technical and operational skills
in various roles within the Anglo American
Group and thereafter as the Vice President
Operations for Southern Platinum Limited.
Mrs Boninelli was appointed to the position
of Senior Vice President: Human Resources
of Gold Fields on 8 January 2007. She is
also the Chairperson of the Gold Fields
Leadership Business Academy. Prior to that,
she was Group Human Resources Director
of Netcare, the largest private healthcare
organisation in South Africa. She previously
held senior human resources, marketing and
communications positions in Standard Bank
and Sappi.
Jan Willem (Willie) Jacobsz
(48)
Juan Luis (Juancho)
Kruger (39)
Senior Vice President: Head of Investor
Relations and Corporate Affairs
BA, University of Johannesburg (previously
Rand Afrikaans University)
Executive Vice President: Head of South
America Region
Bachelor degree in Business and Finance;
Masters Degree in Business Administration
the
Mr Jacobsz joined the Gold Fields executive
committee in June 2002 as Head of Investor
Relations, Corporate Affairs and Sustainable
latter of which he
Development,
relinquished in December 2007. He joined
the Group in 1989 as head of the Gold
Fields Foundation and has subsequently
the fi elds of
held various positions
transformation, corporate affairs,
investor
relations and sustainable development.
in
Mr Kruger was appointed as Executive Vice
President: Head of South America Region
on 1 August 2009. He has over fi fteen years
of broad experience in corporate fi nance,
strategic planning and general management
in
the mining, consumer goods, airline,
telecommunications and fi nancial services
industries in South America. Mr Kruger joined
Gold Fields in October 2007 as Senior Vice
President and Country Manager for the
Peruvian operations, and led the start up
team at Cerro Corona. As of April 2008,
he assumed responsibilities for the South
America Region. Prior to joining the company
he held senior management positions for LAN
Airlines, Glencore, McKinsey & Co, Telefonica
and Procter & Gamble in South America.
Tommy McKeith (45)
Vishnu Pillay (52)
Executive Vice President: Head of
Exploration and Business Development
BSc Hons (Geology), GDE (Mining), MBA,
University of the Witwatersrand
Executive Vice President: Head of South
Africa Region
BSc, MSc at Maharaja Sayajirao University of
Baroda, Gujurat, India
Mr McKeith was appointed to the position
of Executive Vice President: Head of
Exploration and Business Development on
1 October 2007. Prior to this appointment
Mr McKeith was the Chief Executive Offi cer
of Troy Resources NL, an Australian junior
gold producer. Before joining Troy, he worked
for over 15 years with Gold Fields and its
predecessors
in various mine geology,
exploration and business development
positions. These included Regional Manager
Australasia and Vice President Business
Development, based in Denver.
Mr Pillay was appointed Executive Vice
President: Head of South Africa Region from
1 May 2008. He was formerly Vice President
and Head of Operations at Driefontein Gold
Mine. Apart from a brief period with the CSIR
where he held the positions of Executive
Director: CSIR Mining Technology and
Group Executive: Institutional Planning and
Operations. He has had 23 years of service
with Gold Fields at various operations and the
technical division.
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
19
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James (Jimmy) Dowsley
(51)
Senior Vice President: Head of Corporate
Development
BSc (Mining Engineering), Witwatersrand
Mr Dowsley was appointed as Senior Vice
President: Head of Corporate Development
on 15 April 2002. Prior to this appointment,
Mr Dowsley was General Manager of
Corporate Development. He also served as
General Manager of New Business and as
Manager of the Mineral Economics Division of
Gold Fields of South Africa Limited.
Cain Farrel (59)
Michael Fleischer (48)
Corporate Secretary
FCIS, MBA, Southern Cross University,
Australia
Mr Farrel was appointed Corporate Secretary
on 1 May 2003. Mr Farrel is Past-President
and a Director of the Southern African
Institute of Chartered Secretaries and
Administrators. Previously, Mr Farrel served
as Senior Divisional Secretary of Anglo
American Corporation of South Africa.
General Counsel
Bachelor Procurationis, University of the
Witwatersrand. Admitted as attorney of the
High Court of South Africa in 1991; Advanced
Taxation Certifi cate, University of South Africa
Mr Fleischer was appointed General Counsel
with effect from 1 November 2006. Prior to his
appointment, Mr Fleischer was a partner in
the corporate services department at Webber
Wentzel, a major law fi rm in South Africa,
and has extensive experience in advising
on mergers and acquisitions transactions
(where
in South Africa and worldwide
transactions involve a South African element).
Mr Fleischer has a wide range of experience
in mergers and acquisitions, commercial
transactions, mining law and stock exchange
requirements. While
in practice he was
ranked as one of South Africa’s leading
commercial lawyers by Chambers Global (the
world’s leading lawyers for business).
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Paul Schmidt (42)
Peter Turner (52)
Ben Zikmundovsky (59)
Chief Financial Offi cer
BComm, Witwatersrand; BCompt (Hons),
Unisa; CA(SA)
Mr Schmidt was appointed Chief Financial
Offi cer on 1 January 2009. Prior to this
appointment, Mr Schmidt was Financial
Controller for the Group. He has more than
thirteen years’ experience in the mining
industry.
Executive Vice President: Head of West Africa
Region
NHD Vaal Triangle Technikon SA, Mechanical
Engineering; South African Mine Manager
Certifi cate of Competency
(Metalliferous
Mining)
Mr Turner was appointed as Executive Vice
President: Head of West Africa Region
effective on 1 August 2009. Mr Turner has
more than 34 years of experience in the
mining industry. He moved to Ghana in 2008
when he was appointed Vice President of
Operations and before that he headed up
the Kloof Gold Mine in South Africa. Prior
to joining Gold Fields in 2005, he was the
General Manager, East and West Africa
Region for AngloGold Ashanti where he spent
the majority of his career. He progressed
through the ranks, starting as an engineering
trainee at Vaal Reefs in 1975, later spending
time
in various managerial positions at
numerous gold mining operations.
Executive Vice President: Head of
International Capital Projects and
International Technical Services
Bachelor of Science, Mechanical Engineering;
Diploma in Business Management
Mr Zikmundovsky was appointed as Executive
Vice President: Head of International Capital
Projects and International Technical Services
on 1 August 2009. Mr Zikmundovsky has
over 30 years’ experience in the development
of companies, operations and projects in
the mining, mineral processing, construction
and equipment industries on the African
continent, in South America, the former
Soviet Union countries, the Middle East and
in Europe. He started his career in 1973 as
a project design engineer for Roberts Union
Corporation (RUC) in South Africa, and has
since worked in various capacities.
20
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
GOLD FIELDS AT A GLANCE
South Africa Region
Pretoria
Johannesburg
2
1
4
3
Bloemfontein
Durban
Cape Town
1. Driefontein Gold Mine
Production: 25,814 kg (830,000 oz)
Total cash costs: R129,837/kg
(US$448/oz)
NCE*: R176,838/kg (US$610/oz)
Mineral Reserve: 18.2 Moz
Mineral Resource: 52.8 Moz
Employees in service: 15,501
Contractors: 2,244
2. Kloof Gold Mine
Production: 19,998 kg (643,000 ozs)
Total cash costs: R146,930/kg
(US$507/oz)
NCE: R202,140/kg (US$698/oz)
Mineral Reserve: 10.5 Moz
Mineral Resource: 79.0 Moz
Employees in service: 14,522
Contractors: 1,619
Australasia Region
3. Beatrix Gold Mine
Production: 12,164 kg (391,000 ozs)
Total cash costs: R159,799/kg
(US$552/oz)
NCE: R219,254/kg (US$757/oz)
Mineral Reserve: 6.4 Moz
Mineral Resource: 17.6 Moz
Employees in service: 9,649
Contractors: 905
4. South Deep Gold Mine
Production: 5,434 kg (175,000 ozs)
Total cash costs: R207,803/kg
(US$717/oz)
NCE: R406,423/kg (US$1,403/oz)
Mineral Reserve: 29.5 Moz
Mineral Resource: 63.8 Moz
Employees in service: 2,273
Contractors: 2,382
1. St Ives Gold Mine
Production: 13,322 kg
(428,000 ozs)
Total cash costs: R172,707/kg
(A$805/oz, US$596/oz)
NCE: R219,299/kg (A$1,023/oz,
US$757/oz)
Mineral Reserve: 2.3 Moz
Mineral Resource: 5.6 Moz
Employees in service: 263
Contractors: 658
Brisbane
Sydney
Melbourne
2. Agnew Gold Mine
Production: 5,974 kg (192,000 ozs)
Total cash costs: R116,120/kg
(A$541/oz, US$401/oz)
NCE: R159,240/kg (A$743/oz,
US$550/oz)
Mineral Reserve: 0.7 Moz
Mineral Resource: 3.5 Moz
Employees in service: 140
Contractors: 200
2
1
Kalgoorlie
Perth
*Notional Cash Expenditure
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
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West Africa Region
2
1
Accra
South America Region
1
Cajamarca
Lima
1. Tarkwa Gold Mine
Production: 19,048 kg
(612,000 ozs)
Total cash costs: R150,814/kg
(US$521/oz)
NCE: R255,066/kg (US$881/oz)
Mineral Reserve: 10.7 Moz
Mineral Resource: 16.2 Moz
Employees in service: 1,805
Contractors: 2,846
2. Damang Gold Mine
Production: 6,233 kg (200,000 oz)
Total cash costs: R191,179/kg
(US$660/oz)
NCE: R215,851/kg (US$745/oz)
Mineral Reserve: 1.8 Moz
Mineral Resource: 4.3 Moz
Employees in service: 407
Contractors: 1,101
1. Cerro Corona Gold Mine
Production: 6,822 kg (219,000 ozs)
Total cash costs: R106,777/kg
(US$369/oz)
NCE: R268,382/kg (US$926/oz)
Mineral Reserve: 5.5 Moz (gold equivalent)
Mineral Resource: 8.1 Moz (gold equivalent)
Employees in service: 310
Contractors: 506
Exploration and Business Development
3
1
Three advanced stage exploration
drilling prospects
1. West Africa – Sankarani in Mali
2. South America – Chucapaca in Southern Peru
3. Central Asia – Talas in Kyrgyzstan
2
Development Stage
Africa
Australasia
Advanced Drilling
Initial Drilling
Target Defi nition
*Includes Arctic Platinum Project.
1
4
20
–
13
15
South
America
Rest of
the world
1
1
14
2*
3
9
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G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
REVIEW OF OPERATIONS: SOUTH AFRICA REGION
F2009
Achievements
(cid:115)(cid:0) (cid:41)(cid:77)(cid:80)(cid:82)(cid:79)(cid:86)(cid:69)(cid:68)(cid:0)(cid:83)(cid:65)(cid:70)(cid:69)(cid:84)(cid:89)(cid:0)(cid:66)(cid:89)(cid:0)(cid:21)(cid:16)(cid:5)(cid:14)
(cid:115)(cid:0) (cid:51)(cid:85)(cid:67)(cid:67)(cid:69)(cid:83)(cid:83)(cid:70)(cid:85)(cid:76)(cid:0)(cid:67)(cid:79)(cid:77)(cid:80)(cid:76)(cid:69)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)
infrastructure rehabilitation
and priority secondary
support backlog.
(cid:115)(cid:0) (cid:51)(cid:79)(cid:85)(cid:84)(cid:72)(cid:0)(cid:36)(cid:69)(cid:69)(cid:80)(cid:0)(cid:82)(cid:69)(cid:77)(cid:79)(cid:68)(cid:69)(cid:76)(cid:76)(cid:69)(cid:68)(cid:0)
and operational plan
complete for build-up.
(cid:115)(cid:0) (cid:53)(cid:82)(cid:65)(cid:78)(cid:73)(cid:85)(cid:77)(cid:0)(cid:45)(cid:73)(cid:78)(cid:69)(cid:82)(cid:65)(cid:76)(cid:0)
Resource defi ned.
Vishnu Pillay
Executive Vice President: Head of South Africa Region
Since assuming responsibility for Gold Fields’ South African operations this past year, three key areas
of focus have been introduced: vigorous attention to safety; improved secondary support initiatives to
secure the integrity of the deep level haulages; and an enhanced planned maintenance programme.
Despite numerous challenges, tremendous improvement has been made on all three fronts.
Growing our production is a major priority, but we will only do this through a safe and responsible
approach. It is exceptionally gratifying to report that all safety indices have improved over the past
year in the South Africa Region: our fatal injury frequency rate improved by 50 per cent; the lost
day injury frequency rate by 39 per cent; and the serious injury frequency rate by 32 per cent. On
12 June 2009, Driefontein recorded in excess of 2.85 million fatality free shifts, which is a record
achievement for the mine and has set a new benchmark for deep level gold mining. The benefi ts
of the step change in the approach to safety cannot be underestimated and the positive impact on
the morale of the Gold Fields people has been visible. The focus on further improving our safety
record in the year ahead will be maintained by targeting an improvement in each of the key indices
by aiming to achieve a further 33 per cent improvement, year on year.
The rapidly deteriorating backlog in secondary support and infrastructure rehabilitation across
all operations has largely been completed. At Kloof, the Main shaft steel work rehabilitation
was completed in December 2008. With regard to enhancing planned maintenance, condition
assessments are being conducted on all vertical mine shafts and plant infrastructure. Audits
have been done to identify all repairs required. Of course, other important imperatives remain
on the operational front and structured project initiatives are in place to ensure, among various
activities, optimised energy and utilities consumption, an increase in production, better ore
reserve management, and a plan focused on a tripartite health and safety summit aimed at the
implementation of a zero harm policy for all our workers.
The energy and utilities projects, comprising power, diesel and the related consumption of
air and water, target savings of R130 million per annum at current tariff levels by the end of
F2010. This should be achieved by way of a 10 per cent reduction in power consumption and a
20 per cent reduction in diesel consumption. Signifi cant improvements have been made and we are
well on track to achieve these targets.
We are implementing mechanised equipment in all fl at-end development areas at the long-life shafts
of Driefontein, Kloof and Beatrix and we aim to achieve this by the end of F2010. An improvement
in safety, productivity and increased reserve fl exibility is already evident. We are targeting a
mechanised rate of 100 per cent by the end of 2010, with some 46 per cent of development having
been mechanised to date, with unit cost, equipment effi ciency and labour productivity improving
on a daily basis.
At the South Deep project, which secures the long-term sustainability of the South African portfolio,
we are continuing to focus on delivering the build-up to planned development metres, as well as
the completion of the Twin shaft infrastructure. The recommissioning of South shaft for hoisting
has been partially completed and single shift hoisting is being planned in F2010. Current new mine
development rates should deliver the infrastructure necessary to build to full production of around
750,000 to 800,000 ounces per annum by December 2014.
The West Wits Tailings Reprocessing project (Uranium project) team has achieved numerous
milestones over the year. This project aims to assess the viability of extracting gold and uranium, as
well as sulphuric acid, from existing tailings facilities. The achievements over the last year include
the completion of the drilling and evaluation work, as well as the mineral resource model. The
metallurgical test-work has advanced considerably, while all the data accumulated in the pre-
feasibility study is being compiled into fi nancial models for the combined feasibility study, which is
to be presented to the Board of Directors in early 2010.
We are pleased with the two year wage deal that was achieved for F2010 and F2011. The mutually
benefi cial agreement underscores the improving relations with the union bodies in South Africa and
we will strive to continue this positive engagement in future. I am exceptionally pleased with the
progress made at the South African operations, despite the diffi culties experienced. The dedication,
combined with signifi cant contributions from
the entire team has been nothing short of
extraordinary. My gratitude and thanks to all
involved in South Africa.
F2010 Focus Areas
1 Improve safety.
2 Increase Ore Reserve Development.
3 Deliver South Deep project successfully.
4 Create a pipeline of skills.
Vishnu Pillay
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
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Driefontein Gold Mine
Fatal Injury Frequency Rate
improved by 38 per cent.
Over two million fatality free
shifts recorded.
Completed preparatory work
for 4 shaft pillar extraction.
OVERVIEW
Location: Driefontein is situated some 70 km
west of Johannesburg, at latitude 26°24’S
and longitude 27°30’E, near Carletonville in
the Gauteng Province of South Africa. The
site is accessed via the N12 highway between
Johannesburg and Potchefstroom. Geologically
the mine is located on the North Western Rim
of the Witwatersrand Basin. Infrastructure: It
comprises eight producing shaft systems that
mine different contributions from pillars and
open ground, and three gold plants of which
1 plant processes mainly underground ore,
2 plant processes both underground ore and
surface material and 3 plant processes surface
material only. Geology: Three primary reefs
are exploited; the Ventersdorp Contact Reef
(VCR) located at the top of the Central Rand
Group; the Carbon Leader Reef (CL) near
the base and the Middelvlei Reef (MR), which
stratigraphically occurs some 50 metres to
75 metres above the CL. Mine type and depth:
It is a large, well-established deep to ultra deep
level gold mine to 50 level (the lowest working
level) some 3,400 metres below surface.
Employees in service: The mine has 15,501
permanent employees and 2,244 contractors.
SAFETY AND ENVIRONMENT
During the year under review, seven employees
lost their lives in four mining related accidents.
Of the seven deceased, six were fatally injured
in seismic induced falls of ground and one in
a tramming related accident. The fatal injury
frequency rate improved from 0.26 in F2008
to 0.16 in F2009. The mine continued with the
‘Masiphephe’ safety programme during the
year, and overall safety performance improved
on all indices year on year. On 12 June 2009,
the mine recorded in excess of 2.85 million
fatality free shifts, which is a record achievement
for the mine and set a new benchmark for deep
level gold mining. The lost day injury frequency
rate improved from 7.02 for F2008 to 4.90 in
F2009 with about a third of accidents caused
by falls of ground, which remain the major
cause of accidents.
During F2009, Driefontein received, and complied
with, various instructions to stop operations
(known as Section 54s) from the Principal
Inspector of the Gauteng area of the Department
of Mineral Resources (DMR). Following additional
inspections, including the Health and Safety
Audits that ensure legal compliance of the mine,
the DMR has expressed its satisfaction with the
mine’s remedial measures. Driefontein was also
exposed to the external audit by DuPont as well
as an internal audit on the full compliance safety
management system. Remedial action plans
which address the recommendations emanating
from these audits will provide the platform for
continuous health and safety improvements.
Driefontein maintained its OHSAS18001 and
ISO14001:2004 (Environmental Management
System) accreditation
the various
external audits conducted in F2009.
through
OPERATIONAL REVIEW
Gold production decreased by 11 per cent
from 28,865 kilograms in F2008 to 25,814
kilograms in F2009. This was due to two major
interventions, to improve safety performance
and address business interruptions. Firstly,
it was necessary
the rapidly
deteriorating backlog in secondary support at
1, 4 and 5 shafts and secondly, a major pillar
and remnant pillar mining review led to the
suspension of stoping at 6 tertiary and 10 shaft
and the stopping of numerous high grade pillars
across the mine. These interventions had a
severe impact on gold production.
to address
As a result underground tons milled decreased
from 3.27 million tons in F2008 to 3.14 million
tons in F2009. In order to fully utilise mill capacity
surface tons milled increased from 2.71 million
tons in F2008 to 3.08 million tons in F2009.
Main development decreased from 27,459
metres in F2008 to 20,074 metres in F2009
due to the redeployment of development crews
to address the historical backlog secondary
support.
Revenue increased from R5,502 million in
F2008 to R6,546 million in F2009. The higher
gold price received being partially offset by the
lower production.
Operating costs increased by 20 per cent from
R2,933 million in F2008 to R3,531 million in
F2009. This increase was mainly due to higher
electricity tariffs, labour costs and an increase
in raw material prices, especially in the first half
of F2009.
Total cash cost increased from R96,293 per
kilogram (US$412/oz) in F2008 to R129,837
per kilogram (US$448/oz) in F2009 as a result
of the higher costs and lower production.
Operating profit, before amortisation, increased
from R2,569 million in F2008 to R3,015 million
in F2009. Operating margin decreased slightly
from 47 per cent in F2008 to 46 per cent in
F2009.
increased
expenditure
Capital
from
R1,016 million in F2008 to R1,034 million in
F2009. The majority of this increase was due to
housing upgrades and an increase in capitalised
ore reserve development.
from
Notional cash expenditure
R136,806 per kilogram (US$585/oz) in F2008
to R176,838 per kilogram (US$610/oz) in
F2009.
increased
F2010 Focus Areas
(cid:115)(cid:0) (cid:51)(cid:65)(cid:70)(cid:69)(cid:0)(cid:80)(cid:82)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:77)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:27)
(cid:115)(cid:0) (cid:37)(cid:76)(cid:73)(cid:77)(cid:73)(cid:78)(cid:65)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:66)(cid:65)(cid:67)(cid:75)(cid:76)(cid:79)(cid:71)(cid:0) (cid:79)(cid:78)(cid:0) (cid:83)(cid:69)(cid:67)(cid:79)(cid:78)(cid:68)(cid:65)(cid:82)(cid:89)(cid:0)
support;
(cid:115)(cid:0) (cid:54)(cid:79)(cid:76)(cid:85)(cid:77)(cid:69)(cid:12)(cid:0)(cid:86)(cid:65)(cid:76)(cid:85)(cid:69)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:81)(cid:85)(cid:65)(cid:76)(cid:73)(cid:84)(cid:89)(cid:27)
(cid:115)(cid:0) (cid:41)(cid:78)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:73)(cid:78)(cid:71)(cid:0)(cid:77)(cid:73)(cid:78)(cid:73)(cid:78)(cid:71)(cid:0)(cid:109)(cid:69)(cid:88)(cid:73)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0)(cid:66)(cid:89)(cid:0)(cid:65)(cid:67)(cid:67)(cid:69)(cid:76)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0)
development;
(cid:115)(cid:0) (cid:33)(cid:68)(cid:86)(cid:65)(cid:78)(cid:67)(cid:73)(cid:78)(cid:71)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:79)(cid:80)(cid:84)(cid:73)(cid:77)(cid:73)(cid:83)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0) (cid:83)(cid:84)(cid:85)(cid:68)(cid:89)(cid:0) (cid:79)(cid:78)(cid:0)
mining below 50 level;
(cid:115)(cid:0) (cid:50)(cid:69)(cid:68)(cid:85)(cid:67)(cid:73)(cid:78)(cid:71)(cid:0)(cid:69)(cid:76)(cid:69)(cid:67)(cid:84)(cid:82)(cid:73)(cid:67)(cid:73)(cid:84)(cid:89)(cid:0)(cid:67)(cid:79)(cid:78)(cid:83)(cid:85)(cid:77)(cid:80)(cid:84)(cid:73)(cid:79)(cid:78)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0) (cid:33)(cid:68)(cid:86)(cid:65)(cid:78)(cid:67)(cid:73)(cid:78)(cid:71)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:67)(cid:79)(cid:77)(cid:77)(cid:73)(cid:84)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83)(cid:0)(cid:65)(cid:83)(cid:0)(cid:83)(cid:69)(cid:84)(cid:0)(cid:79)(cid:85)(cid:84)(cid:0)
in the Driefontein Social and Labour
Plan.
24
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
REVIEW OF OPERATIONS: SOUTH AFRICA REGION
continued
Kloof Gold Mine
Fatal Injury Frequency Rate
improved by 30 per cent.
Major shaft infrastructure
rehabilitation completed.
Ore reserve development
accelerated.
OVERVIEW
Location: Kloof is situated some 60 km west
of Johannesburg at latitude 26°24’S and
longitude 27°36’E, near Westonaria in the
Gauteng Province of South Africa. The mine
is accessed via the N12 highway between
Johannesburg and Potchefstroom. Geologically
the mine is located on the main Western Rim
of the Witwatersrand Basin. Infrastructure:
Kloof consists of six shaft systems and two
gold plants. Geology: Kloof exploits auriferous
palaeoplacers (reefs), namely the Ventersdorp
Contact Reef (VCR) that constitutes 83 per
cent of the Kloof Underground Mineral Reserve
ounces, the Middelvlei Reef (MR) 15 per cent
and two per cent from the Kloof Reef (KR).
Mine type and depth: It is a large, well-
established intermediate to ultra deep level
gold mine to 45 level (the lowest working level)
some 3,347 metres below surface. Employees
cent from 11.05 for F2008 to 6.03 for F2009.
Kloof achieved 1 million fatality free shifts on
9 October 2008.
The mine remains committed to the zero
harm philosophy and has introduced further
improvements to its behaviour based training
and safety programmes. The Gold Fields Safe
Production Rules are also being rolled out in
a 20-week process together with the Fall of
Ground or “Stop & Terminate All Rockfalls”
(STAR) campaign.
Following the heightened safety awareness
across the Group, Kloof has adopted a more
prudent approach to pillar mining. Identified
remnant pillars are comprehensively analysed
and approved by
the Rock Engineering
Department before any mining takes place.
Kloof was exposed to the external audit by
DuPont as well as an internal audit of the Full
Compliance Safety Management System.
Remedial action plans emanating from these
audits provide the platform for continuous
health and safety improvements.
During the year, Kloof was issued with various
As a result of the lower mining activity tons
from
from underground decreased
milled
2.94 million tons in F2008 to 2.40 million
tons in F2009. Surface tons decreased from
1.01 million tons to 0.92 million tons due to a
reduction in toll milling at South Deep, partially
offset by an increase in surface ore processed a
Kloof 1 and 2 plants.
in F2008
Main development decreased from 33,582
metres
in
F2009. This decrease was mainly due to the
redeployment of development crews to address
the secondary support backlog.
to 22,838 metres
Revenue increased from R4,805 million in
F2008 to R5,066 million in F2009. The higher
gold price received was partially offset by the
lower production.
Operating costs increased by 15 per cent
from R2,690 million in F2008 to R3,084 million
in F2009. This increase was mainly due to
increased labour costs, an increase in raw
material prices, increased electricity tariffs and
higher contractor costs associated with the
transport of ore from 4 shaft to 2 plant. This
was as a result of the logistical constraints
experienced during
the Main shaft repair
instructions to stop operations through the
programme.
DMR’s Section 54 mechanism with respect to
accidents that related to support, grizzlies, shaft
repair work and centralised blasting. Following
Total cash cost increased from R100,419 per
kilogram (US$430/oz) in F2008 to R146,930 per
these stoppages, standards were
revised
kilogram (US$507/oz) in F2009 as a result of
and, in addition, physical audits were done on
the higher costs and lower production.
workplaces and practices to improve safety
in service: The mine has 14,522 permanent
awareness.
employees and 1,619 contractors.
Operating profit, before amortisation, decreased
from R2,115 million in F2008 to R1,983 million
SAFETY AND ENVIRONMENT
During the year, ten employees lost their lives
in eight separate
incidents, compared to
fifteen fatalities in F2008. Five incidents were
caused by seismic induced falls of ground
and one by a gravity induced fall of ground.
Kloof maintained
its OHSAS18001 and
in F2009. Operating margin decreased from
ISO14001:2004 (Environmental Management
44 per cent in F2008 to 39 per cent in F2009.
System) accreditation
through
the various
external audits conducted during F2009.
Capital expenditure increased from R898 million
OPERATIONAL REVIEW
Gold produced decreased by 22 per
contributors to this increase were capitalised
ore reserve development, the 4 shaft complex
in F2008 to R959 million in F2009. The main
Falls of ground (gravity and seismic related)
cent from 25,533 kilograms in F2008 to
and the Social and Labour Plan project.
remained the major cause of injuries. There
has been a 30 per cent improvement in the
fatal injury frequency rate from 0.33 to 0.23,
and a 52 per cent improvement in the serious
injury frequency rate from 6.96 to 3.31. The
lost day injury frequency rate improved 45 per
19,998 kilograms in F2009. This was due to
major infrastructure repairs at Main shaft which
disrupted production in the first half of the year,
safety related stoppages and an underground
fire at 7 shaft also impacted negatively on
mining volumes.
Notional cash expenditure
increased
from
R140,512 per kilogram (US$601/oz) in F2008
to R202,140 per kilogram (US$698/oz) in
F2009.
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
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(cid:115)(cid:0) (cid:38)(cid:73)(cid:78)(cid:65)(cid:76)(cid:73)(cid:83)(cid:73)(cid:78)(cid:71)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:45)(cid:65)(cid:73)(cid:78)(cid:0)(cid:83)(cid:72)(cid:65)(cid:70)(cid:84)(cid:0)(cid:80)(cid:73)(cid:76)(cid:76)(cid:65)(cid:82)(cid:0)(cid:69)(cid:88)(cid:84)(cid:82)(cid:65)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)
project;
(cid:115)(cid:0) (cid:37)(cid:76)(cid:73)(cid:77)(cid:73)(cid:78)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:83)(cid:69)(cid:67)(cid:79)(cid:78)(cid:68)(cid:65)(cid:82)(cid:89)(cid:0)(cid:83)(cid:85)(cid:80)(cid:80)(cid:79)(cid:82)(cid:84)(cid:0)(cid:66)(cid:65)(cid:67)(cid:75)(cid:76)(cid:79)(cid:71)(cid:27)
(cid:115)(cid:0) (cid:41)(cid:78)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:73)(cid:78)(cid:71)(cid:0)(cid:77)(cid:73)(cid:78)(cid:73)(cid:78)(cid:71)(cid:0)(cid:109)(cid:69)(cid:88)(cid:73)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0)(cid:66)(cid:89)(cid:0)(cid:65)(cid:67)(cid:67)(cid:69)(cid:76)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0)
development;
(cid:115)(cid:0) (cid:17)(cid:16)(cid:16)(cid:0)(cid:80)(cid:69)(cid:82)(cid:0)(cid:67)(cid:69)(cid:78)(cid:84)(cid:0)(cid:77)(cid:69)(cid:67)(cid:72)(cid:65)(cid:78)(cid:73)(cid:83)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:65)(cid:76)(cid:76)(cid:0)(cid:109)(cid:65)(cid:84)(cid:0)(cid:69)(cid:78)(cid:68)(cid:0)
development;
(cid:115)(cid:0) (cid:41)(cid:78)(cid:84)(cid:69)(cid:78)(cid:83)(cid:73)(cid:70)(cid:89)(cid:73)(cid:78)(cid:71)(cid:0)(cid:64)(cid:79)(cid:76)(cid:68)(cid:7)(cid:0)(cid:71)(cid:79)(cid:76)(cid:68)(cid:0)(cid:82)(cid:69)(cid:67)(cid:79)(cid:86)(cid:69)(cid:82)(cid:89)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0) (cid:33)(cid:68)(cid:86)(cid:65)(cid:78)(cid:67)(cid:73)(cid:78)(cid:71)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:67)(cid:79)(cid:77)(cid:77)(cid:73)(cid:84)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83)(cid:0)(cid:65)(cid:83)(cid:0)(cid:83)(cid:69)(cid:84)(cid:0)(cid:79)(cid:85)(cid:84)(cid:0)(cid:73)(cid:78)(cid:0)
the Kloof Social and Labour Plan.
Beatrix Gold Mine
Mining quality issues resolved
– approaching steady state
production.
Turnaround in safety evident.
Ore reserve development
accelerated.
SAFETY AND ENVIRONMENT
Beatrix’s safety performance regressed slightly
in lost time injury frequency rates, while the
fatal injury frequency rate remained steady at
0.13 per million man hours worked. Regrettably,
four employees lost their lives during the year
in four separate incidents, two of which were
tramming related, one fall of ground and one
where an employee fell down an orepass.
Phase 2 of the well accepted ‘Khuleseka’
(be protected) commenced during the fourth
quarter, during which all supervisors were
exposed to a two day intervention focusing
on theory and practical exposure of technical
skills required to improve their quality of work.
Beatrix was also exposed to the external audit
by DuPont as well as an internal audit of the
Full Compliance Safety Management System.
Remedial action plans emanating from these
audits provide the platform for continuous
health and safety improvements.
its OHSAS18001 and
Beatrix maintained
ISO14001:2004 (Environmental Management
System) accreditation
the various
external audits conducted in F2009.
through
The Beatrix methane-capture project has been
approved by the Designated National Authority
for the clean development mechanism in South
Africa.
then via
is situated at
OVERVIEW
Location: Beatrix
latitude
28°15’S and longitude 26°47’E, near the
towns of Welkom and Virginia, some 240km
southwest of Johannesburg in the Free State
Province of South Africa. The site is accessed
via the N1 highway between Johannesburg
and Kroonstad, and
the R34.
Geologically the mine is located along the
Southern Rim of the Witwatersrand Basin.
Infrastructure: It consists of four operating
shafts and two gold plants. Geology: Exploiting
auriferous palaeoplacers (reefs) of the Central
Rand Group. The Beatrix Reef (BXR), and
local
thereof, constitutes
72 per cent of the Beatrix Ore Reserve with
the Kalkoenkrans Reef
(KKR) contributing
28 per cent. Mine type and depth: It is a large
shallow to medium depth gold mine operating
at depths between 600 and 2,155 metres
below surface. Employees in service: The
mine has 9,649 permanent employees and
905 contractors.
facies variations
from
identified surface boreholes,
A project to capture and extract methane gas
from underground at the South Section of the
mine, as well as to capture and flare methane
is
gas
progressing well with flaring of the gas scheduled
to take place by the end of 2009. The objective
of this project is to mitigate the environmental
impact of mining activity at the mine with regard
to greenhouse gas emissions and initially to
generate carbon credits and, thereafter, to utilise
methane for power generation.
OPERATIONAL REVIEW
Gold produced decreased by 11 per cent from
13,625 kilograms in F2008 to 12,164 kilograms
in F2009. This was due to lower underground
volumes at 3 shaft, mine call factor regression
and safety related stoppages.
Tons milled decreased from 3.22 million in
F2008 to 2.99 million in F2009. Even though
no surface tons were processed the mine
continues to examine and review the viability of
the low grade surface dumps which appear to
be economical at current gold prices.
Main development decreased from 40,812 metres
in F2008 to 32,630 metres in F2009. The
decrease was due to the focus on safety which
required the cleaning of haulages, removing
of mud accumulation and bringing
the
construction and the equipping of development
ends up to standard. Exploratory secondary
development was increased at the South
section to define high grade areas for future
stoping activities.
Revenue increased from R2,615 million in
F2008 to R3,055 million in F2009. The higher
gold price received was partially offset by the
lower production.
Operating costs increased by 18 per cent
from R1,725 million in F2008 to R2,038 million
in F2009. This increase was mainly due to
incentives, higher salaries and
employee
wages, as well as overtime and an increase in
electricity tariffs.
Total cash cost increased from R120,382 per
kilogram (US$515/oz) in F2008 to R159,799
per kilogram (US$552/oz) in F2009 as a result
of the higher costs and lower production.
Operating profit, before amortisation, increased
from R891 million in F2008 to R1,018 million
in F2009. Operating margin decreased slightly
from 34 per cent in F2008 to 33 per cent in
F2009.
Capital expenditure increased from R577 million
in F2008 to R629 million in F2009. The majority
of
this expenditure was on accelerated
ore reserve development across the mine.
Development at 3 shaft, 24 level, is nearing
completion and progressing as planned on 25
and 26 levels.
Notional cash expenditure
from
R168,903 per kilogram (US$723/oz) in F2008
to R219,254 per kilogram (US$757/oz) in
F2009.
increased
26
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
REVIEW OF OPERATIONS: SOUTH AFRICA REGION
continued
surface), and below current infrastructure to 135
recommissioned, which is in line with the
level (3,250 metres below surface). Geology:
strategy for F2010 with approximately 60,000
Exploiting auriferous palaeoplacers (reefs), i.e.
tons per month to be hoisted at the South
the Ventersdorp Contact Reef (VCR) of the
shaft complex. At the Twin shaft complex
Venterspost Formation and conglomerates
the Ventilation shaft brattice wall was safely
that comprise the Upper Elsburg Reefs of the
installed during F2009 and the first of four
Mondeor Formation. Mine type and depth:
surface fans has been commissioned. The fans
A large developing deep level gold mine (>2,000
will be utilised in the build-up to full production
metres below surface). Employees in service:
when the mine design requires the additional
F2010 Focus Areas
(cid:115)(cid:0) (cid:51)(cid:65)(cid:70)(cid:69)(cid:0)(cid:80)(cid:82)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:77)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:27)
(cid:115)(cid:0) (cid:51)(cid:84)(cid:65)(cid:66)(cid:73)(cid:76)(cid:73)(cid:83)(cid:73)(cid:78)(cid:71)(cid:0) (cid:83)(cid:84)(cid:79)(cid:80)(cid:73)(cid:78)(cid:71)(cid:12)(cid:0) (cid:68)(cid:69)(cid:86)(cid:69)(cid:76)(cid:79)(cid:80)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0) (cid:65)(cid:78)(cid:68)(cid:0)
production;
(cid:115)(cid:0) (cid:41)(cid:78)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:69)(cid:0) (cid:109)(cid:69)(cid:88)(cid:73)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0) (cid:66)(cid:89)(cid:0) (cid:68)(cid:69)(cid:86)(cid:69)(cid:76)(cid:79)(cid:80)(cid:73)(cid:78)(cid:71)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:79)(cid:82)(cid:69)(cid:0)
body with emphasis on the continued
introduction and delivery of development
mechanisation initiatives;
(cid:115)(cid:0) (cid:38)(cid:85)(cid:76)(cid:76)(cid:0)
(cid:73)(cid:77)(cid:80)(cid:76)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0) (cid:65)(cid:78)(cid:68)(cid:0)
(cid:83)(cid:85)(cid:83)(cid:84)(cid:65)(cid:73)(cid:78)(cid:69)(cid:68)(cid:0)
application of consistent drilling, blasting
and explosive usage to maintain a high
MCF and contribute towards improved
gold recovery; and
(cid:115)(cid:0) (cid:47)(cid:78)(cid:71)(cid:79)(cid:73)(cid:78)(cid:71)(cid:0) (cid:73)(cid:77)(cid:80)(cid:76)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0) (cid:65)(cid:78)(cid:68)(cid:0) (cid:68)(cid:69)(cid:76)(cid:73)(cid:86)(cid:69)(cid:82)(cid:89)(cid:0) (cid:79)(cid:70)(cid:0)
the Beatrix Social and Labour Plan.
South Deep Project
Mine positioned to increase
production to 300,000
ounces during F2010.
South shaft recommissioned,
(cid:197)(cid:76)(cid:76)(cid:91)(cid:3)(cid:80)(cid:85)(cid:3)(cid:87)(cid:83)(cid:72)(cid:74)(cid:76)(cid:19)(cid:3)(cid:86)(cid:89)(cid:76)(cid:3)(cid:73)(cid:86)(cid:75)(cid:96)(cid:3)
remodelled for next 30 years.
(cid:3)(cid:3)(cid:54)(cid:85)(cid:3)(cid:91)(cid:89)(cid:72)(cid:74)(cid:82)(cid:3)(cid:77)(cid:86)(cid:89)(cid:3)(cid:73)(cid:92)(cid:80)(cid:83)(cid:75)(cid:20)(cid:92)(cid:87)(cid:3)(cid:91)(cid:86)(cid:3)(cid:77)(cid:92)(cid:83)(cid:83)(cid:3)
production by end of 2014.
OVERVIEW
Location: South Deep is situated in the
The mine has 2,273 permanent employees and
2,382 contractors.
SAFETY AND ENVIRONMENT
There has been a steady improvement in the
safety performance year on year. The standout
safety statistic was a fatality free year for F2009.
The serious injury frequency rate decreased
from 5.25 to 2.08, an improvement of 60 per
cent, the lost day injury frequency rate decreased
from 16.81 to 5.26, an improvement of 69 per
cent, and the injury free days for the year of 218
is a new record for the mine. South Deep is now
100 per cent on trackless mechanised mining
methods and this has significantly contributed
to the improved safety performance. The mine
has adopted a ‘one pass system’ for support,
which covers all development headings across
the mine. No Section 54s were issued to South
Deep by the Department of Mineral Resources
during the year. Various internal and external
audits were conducted during the year.
South Deep has
received
ISO14001:2004
(Environmental
Management
System)
accreditation, and became the first of Gold Fields’
operations to be fully compliant and accredited
districts of Westonaria and Vanderbijlpark
with the requirements of the ICMI Cyanide Code.
(Gauteng Province), some 45 km southwest
In F2010, OHSAS18001 certification is planned.
of Johannesburg at latitude 26º 25’S and
longitude 27º 40’E. It is accessed via the
R28 provincial
road between Westonaria
PROJECT REVIEW
South Deep is a capital project and remains a
and Vereeniging, and is located in the major
developing mine. Excellent progress has been
gold mining region of South Africa, being the
made on the infrastructure to support the F2010
Witwatersrand Basin. Infrastructure: South
target of producing 300,000 ounces of gold and
Deep operates one gold plant and is accessed
the F2014 target of achieving full production
from surface through two shaft systems, the
of between 750,000 and 800,000 ounces of
ventilation. Everything is on track for the
completion of the Ventilation shaft early in 2012
and the subsequent full commissioning of the
entire Twin shaft complex to its design capacity
of 330,000 tons of ore hoisted per month. This
is a critical path milestone required for the mine
to achieve full production, as planned by the
end of F2014.
The surface exploration drilling programme has
progressed in F2009 and the currently planned
12 boreholes will be completed by the end
of F2011. In addition, long incline boreholes
(LIB) have been drilled underground and
this has resulted in a better understanding of
the area below 95 level and has reduced the
development required on 110 level to access
and open up the ore body.
The mining rights conversion application was
submitted in December 2008 and the mine is
advancing the commitments as set out in the
Social and Labour Plan.
Mechanised de-stress mining commenced in
the three targeted project areas in the current
mining horizons during F2009. Innovative mine
design has resulted in the application of a
horizontal de-stress mining cut and the same
low profile mechanised equipment is applied for
the regular mining and the de-stress cut mining.
The horizontal method has the benefit of
enhancing the de-stress mining grade and will
facilitate access to the long hole stoping mining
layouts for the new ground below 95 level.
new Twin shaft complex of which the main
shaft comprises a single-drop to a depth of
2,995 metres, and the original mine’s South
shaft complex. The mine has been subdivided
into two main areas, namely “above current
infrastructure” to 110 level (2,888 metres below
gold. The ore body has been remodelled and
scheduled for the next 30-years, the fleet is in
place and South shaft has been refurbished.
Construction of the new South Deep tailings
storage
facility has commenced and
scheduled
for first
tailings deposition
is
in
February 2010. Construction is expected to be
Re-investment in the South shaft complex
completed by July 2010.
during the year has seen rock winding facilities
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
27
S
e
c
t
i
o
n
1
:
i
B
u
s
n
e
s
s
R
e
v
e
w
s
i
–
R
e
v
e
w
o
f
i
O
p
e
r
a
t
i
o
n
s
:
S
o
u
t
h
A
f
r
i
c
a
R
e
g
o
n
i
OPERATIONAL REVIEW
Gold produced decreased by 25 per cent from
7,220 kilograms in F2008 to 5,434 kilograms in
F2009. This was due to the cessation of VCR
mining in January 2007 because of a major
geological fault causing the depletion of ore
availability.
increased
Notional cash expenditure
from
R283,712 per kilogram (US$1,214/oz) in F2008
to R406,423 per kilogram (US$1,403/oz) in
F2009, due to the significant capital investment
needed to bring this mine to full production.
Tons milled decreased from 1.37 million tons in
F2008 to 1.24 million tons in F2009. This was
F2010 Focus Areas
(cid:115)(cid:0) (cid:51)(cid:65)(cid:70)(cid:69)(cid:0)(cid:80)(cid:82)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:77)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:27)
(cid:115)(cid:0) (cid:35)(cid:79)(cid:77)(cid:80)(cid:76)(cid:69)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0) (cid:79)(cid:70)(cid:0) (cid:65)(cid:76)(cid:76)(cid:0) (cid:83)(cid:72)(cid:65)(cid:70)(cid:84)(cid:0) (cid:73)(cid:78)(cid:70)(cid:82)(cid:65)(cid:83)(cid:84)(cid:82)(cid:85)(cid:67)(cid:84)(cid:85)(cid:82)(cid:69)(cid:0) (cid:73)(cid:78)(cid:0)
support of achieving full production by
December 2014;
(cid:115)(cid:0) (cid:36)(cid:69)(cid:86)(cid:69)(cid:76)(cid:79)(cid:80)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:84)(cid:79)(cid:0)(cid:82)(cid:65)(cid:77)(cid:80)(cid:0)(cid:85)(cid:80)(cid:0)(cid:84)(cid:79)(cid:0)(cid:17)(cid:23)(cid:14)(cid:20)(cid:0)(cid:75)(cid:77)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)
7.2 km waste and reef metres; and
(cid:115)(cid:0) (cid:35)(cid:82)(cid:69)(cid:65)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0)(cid:77)(cid:73)(cid:78)(cid:73)(cid:78)(cid:71)(cid:0)(cid:109)(cid:69)(cid:88)(cid:73)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0)(cid:65)(cid:84)(cid:0)(cid:51)(cid:79)(cid:85)(cid:84)(cid:72)(cid:0)(cid:83)(cid:72)(cid:65)(cid:70)(cid:84)(cid:14)
mainly due to lower surface tons milled and
the cessation of the VCR mining. Surface tons
decreased from 0.30 million tons to 0.20 million
tons due to the depletion of surface dump
material. The majority of the surface material
processed in F2009 was from surface clean-up.
Main development increased from 5,850 metres
to 7,152 metres in F2009. Development below
95 level gained momentum in January 2009,
after the interruptions caused by the shaft
accident in May 2008.
Revenue increased from R1,342 million in
F2008 to R1,398 million in F2009. The higher
gold price received was partially offset by the
lower production.
Operating costs decreased by six per cent
from R1,264 million in F2008 to R1,188 million
in F2009. This decrease was mainly due to
labour restructuring early in the year which was
necessary because of the depletion of ore at
the labour intensive VCR mining area.
Total cash cost increased from R169,889 per
kilogram (US$727/oz) in F2008 to R207,803
per kilogram (US$717/oz) in F2009 as a result
of the lower production.
Operating profit, before amortisation, increased
from R78 million in F2008 to R210 million in
F2009. Operating margin increased from six per
cent in F2008 to 15 per cent in F2009.
Capital expenditure increased from R785 million
in F2008 to R1,021 million in F2009. The
majority of this increase was due to expenditure
infrastructure below
on development and
95 level.
28
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
REVIEW OF OPERATIONS: SOUTH AFRICA REGION
continued
Fatal Injury Frequency Rates
per million man hours worked
1.00
0.75
0.50
5
7
.
0
3
3
.
0
3
2
.
0
0.25
6
2
.
0
6
1
.
0
3
1
.
0
3
1
.
0
0.00
Driefontein
Kloof
Beatrix
0
0
.
0
South
Deep
2
3
.
0
6
1
.
0
Total
SA
Region
2008
2009
Serious Injury Frequency Rates
per million man hours worked
8
7
6
5
4
3
2
1
0
6
9
.
6
5
4
.
4
1
8
.
3
2
0
.
3
1
3
.
3
9
8
.
2
5
2
.
5
7
7
.
4
2
2
.
3
8
0
.
2
Driefontein
Kloof
Beatrix
South
Deep
Total
SA
Region
2008
2009
Driefontein Gold Mine
Main development
Main on-reef (development)
(value)
Area mined
Productivity
Tons milled
Yield
Gold produced
Operating costs
Gold sold
Total cash cost
Underground
Surface
Total
Underground
Surface
Combined
Underground
Surface
Total
Total
Underground
Surface
Total
Notional cash expenditure
Net earnings
Capital expenditure
*TEC = Total Employees Costed
Kloof Gold Mine
Main development
Main on-reef (development)
(value)
Area mined
Productivity
Tons milled
Yield
Gold produced
Operating costs
Gold sold
Total cash cost
Underground
Surface
Total
Underground
Surface
Combined
Underground
Surface
Total
Total
Underground
Surface
Total
Notional cash expenditure
Net earnings
Capital expenditure
*TEC = Total Employees Costed
km
km
cm g/t
’000m
m²/TEC*
’000
’000
’000
g/t
g/t
g/t
kg
kg
kg
’000oz
R/ton
R/ton
R/ton
2009
20.1
4.1
877
530
2.6
3,137
3,080
6,217
7.5
0.7
4.2
23,658
2,156
25,814
830
1,044
83
568
2008
27.5
5.8
1,242
579
2.8
3,273
2,708
5,981
8.1
0.8
4.8
26,591
2,274
28,865
928
830
79
490
2007
28.0
5.3
1,307
653
3.2
3,812
2,840
6,652
7.6
1.0
4.8
28,815
2,803
31,618
1,017
653
65
402
2006
27.4
4.2
1,454
680
3.4
3,867
3,000
6,867
8.1
1.4
5.2
31,441
4,314
35,755
1,150
579
60
352
kg
25,814
28,865
31,618
35,755
US$/oz
448
R/kg 129,837
412
96,293
348
80,457
US$/oz
476
R/kg 176,838 136,806 110,269
610
585
Rm 1,421.3
1,233.3
1,004.3
Rm 1,034.4
1,016.4
815.0
km
km
cm g/t
’000m
m2/TEC*
’000
’000
’000
g/t
g/t
g/t
kg
kg
kg
’000oz
R/ton
R/ton
R/ton
2009
22.8
3.7
1,777
428
2.2
2,398
921
3,319
8.1
0.7
6.0
19,316
682
19,998
643
1,254
84
929
2008
33.6
5.0
1,717
519
2.6
2,941
1,012
3,953
8.4
0.9
6.5
24,587
946
25,533
821
893
62
680
2007
35.0
6.1
1,410
620
2.9
3,447
382
3,829
8.2
1.2
7.5
28,260
445
28,705
923
727
82
662
315
64,870
403
82,872
645.0
543.3
2006
30.4
7.3
1,788
607
3.4
3,206
460
3,666
8.7
1.1
7.8
27,915
514
28,429
914
703
61
622
kg
19,998
25,533
28,705
28,429
US$/oz
430
507
R/kg 146,930 100,419
366
84,672
US$/oz
498
R/kg 202,140 140,512 115,377
601
698
Rm
Rm
772.8
958.6
947.9
897.7
790.3
775.8
374
76,918
472
97,200
209.9
482.7
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
29
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Lost Day Injury Frequency Rates
per million man hours worked
25
20
15
10
5
0
1
8
.
6
1
5
0
.
1
1
2
0
.
7
0
9
.
4
3
0
.
6
9
1
.
5
0
9
.
3
5
8
.
8
6
2
.
5
8
3
.
5
Driefontein
Kloof
Beatrix
South
Deep
Total
SA
Region
2008
2009
Lost Time Frequency Rates
per million man hours worked
350
300
250
200
150
100
50
0
1
3
3
9
0
3
0
8
2
6
1
3
6
0
3
8
5
2
0
5
2
0
2
2
0
4
2
3
2
1
Driefontein
Kloof
Beatrix
South
Deep
Total
SA
Region
2008
2009
Beatrix Gold Mine
Main development
Main on-reef (development)
(value)
Area mined
Productivity
Tons milled
Yield
Gold produced
Operating costs
Gold sold
Total cash cost
Underground
Surface
Total
Underground
Surface
Combined
Underground
Surface
Total
Total
Underground
Surface
Total
Notional cash expenditure
Net earnings
Capital expenditure
*TEC = Total Employees Costed
South Deep Gold Mine
Main development
Main on-reef (development)
(value)
Area mined**
Tons milled
Yield
Gold production
Operating costs
Gold sold
Total cash cost
Underground
Surface
Total
Underground
Surface
Combined
Underground
Surface
Total
Total
Underground
Surface
Total
Notional cash expenditure
Net loss
km
km
cm g/t
’000m
m2/TEC*
’000
’000
’000
g/t
g/t
g/t
kg
kg
kg
’000oz
R/ton
R/ton
R/ton
2009
32.6
6.7
963
565
4.5
2,991
–
2,991
4.1
–
4.1
12,164
–
12,164
391
681
–
681
2008
40.8
8.3
974
625
4.9
3,215
–
3,215
4.2
–
4.2
13,625
–
13,625
438
536
–
536
2007
43.8
6.4
967
703
5.6
3,590
–
3,590
4.7
–
4.7
16,903
–
16,903
543
432
–
432
2006
35.9
6.9
1,135
686
5.5
3,551
–
3,551
5.2
–
5.2
18,541
–
18,541
596
396
–
396
kg
12,164
13,625
16,903
18,541
US$/oz
515
552
R/kg 159,799 120,382
377
87,251
US$/oz
584
R/kg 219,254 168,903 126,812
757
723
Rm
Rm
321.8
629.4
332.4
576.6
370.8
592.8
354
72,768
485
99,892
185.3
447.3
2007*
2.9
1.7
6.2
48.0
776
328
1,104
6.2
0.9
4.6
4,783
293
5,076
163
896
75
652
5,166
2009
2008
7.2
4.3
5.9
0
1,038
203
1,241
6.1
1.3
4.4
5,178
256
5,434
175
1,134
53
957
5,434
5.9
3.1
6.0
42.0
1,066
301
1,367
6.5
0.8
5.3
6,967
253
7,220
232
1,170
54
924
7,220
717
595
207,803 169,889 137,689
727
1,403
854
406,423 283,712 197,636
1,214
(10.9)
(143.1)
(46.8)
1,020.5
784.7
283.4
km
km
g/t
’000m
’000
’000
’000
g/t
g/t
g/t
kg
kg
kg
’000oz
R/ton
R/ton
R/ton
kg
US$/oz
R/kg
US$/oz
R/kg
Rm
Capital expenditure
Rm
*South Deep for seven months from 1 December 2006
**VCR conventional mining was stopped in F2008
30
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
REVIEW OF OPERATIONS: WEST AFRICA REGION
F2009
Achievements
(cid:115)(cid:0) (cid:37)(cid:88)(cid:67)(cid:69)(cid:76)(cid:76)(cid:69)(cid:78)(cid:84)(cid:0)(cid:83)(cid:65)(cid:70)(cid:69)(cid:84)(cid:89)(cid:0)(cid:82)(cid:69)(cid:67)(cid:79)(cid:82)(cid:68)(cid:14)(cid:0)
(cid:115)(cid:0) (cid:35)(cid:41)(cid:44)(cid:0)(cid:80)(cid:76)(cid:65)(cid:78)(cid:84)(cid:0)(cid:67)(cid:79)(cid:77)(cid:77)(cid:73)(cid:83)(cid:83)(cid:73)(cid:79)(cid:78)(cid:73)(cid:78)(cid:71)(cid:0)
completed.
Peter Turner
Executive Vice President: Head of West Africa Region
During the last year, Ghana concluded peaceful national elections that resulted in a new government
being formed. Various ministerial changes have occurred as a result, and Gold Fields Ghana has
already formed strong relationships with the new incumbents.
Most importantly, it is gratifying to report that we had an excellent safety year in the region, with no
fatalities. The entire region is continuing its focus on ensuring that the detailed and considerable
safety policies and philosophies of the Gold Fields Group are adhered to on a daily basis. In
addition, the approach to employee well-being has been accelerated by integrating all chronic
disease initiatives into the overall programme, including a renewed focus on malaria. The on-
site health care services are well supported by the Group as these remain vitally important in this
environment, especially when it comes to the early diagnosis and treatment of infectious diseases
such as malaria.
Gold Fields Ghana continues its commitment to other areas of sustainable development through the
implementation of a range of carefully considered projects and effective stakeholder engagement.
The Gold Fields Ghana Foundation focuses on the need to improve the quality of lives of some
30,000 men, women and children in 16 primary stakeholder communities, and continues to achieve
positive results in areas such as agriculture, education, health and sanitation.
Within the region, we remain focused on creating a sustainable production platform, while growing
the region with a specifi c focus in Ghana and Mali. The CIL plant expansion project at Tarkwa was
completed in December 2008. However, the slower than planned build-up of the plant impacted
negatively on the year’s gold production, which was slightly lower than last year. The CIL plant,
which is the third largest in the world, is now fully operational and is expected to have a positive
impact on production in F2010. At Damang, where gold production rose to 200,000 ounces, the
focus remains on maintaining plant effi ciencies and optimising throughput volumes. One of the
initiatives to support this objective is to install a secondary crusher plant, which will enhance the
throughput of hard material, while maintaining grade quality.
The West Africa Region is focused on increasing its exploration effort to improve the overall resource
base, and the eventual life of mine in the region. At Damang, we plan to spend US$10 million on
brownfi elds exploration drilling during F2010, with a view to at least double the reserves of the mine.
We are also planning to accelerate our greenfi elds exploration footprint in the Yanfolila Belt in Mali,
where we have a signifi cant interest in the Sankarani joint venture project. Subsequent to year-end,
Gold Fields made a successful offer to acquire the entire issued share capital of Glencar, which
includes Glencar’s advanced Komana prospect. Our medium-term target is to grow attributable
production in the West Africa Region to more than one million ounces per annum.
The region remains committed to optimising the business process through the use of the Six Sigma
continuous improvement philosophy, while maintaining a safe working environment, and improving
the quality of life for our employees and the communities that surround us.
Peter Turner
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
31
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Tarkwa Gold Mine
Fatality free year.
CIL plant construction
completed and successfully
ramped up.
Approaching full production.
OVERVIEW
Location: The Tarkwa gold mine is located
in southwestern Ghana, about 300 km by
road west of Accra, the capital, at latitude
5°15’N and longitude 2°00’W. It is situated
some 4 km west of the town of Tarkwa with good
access roads and an established infrastructure,
which is served by a main road connecting the
port of Takoradi some 60 km to the southeast
on the Atlantic coast. Infrastructure: Multiple
open pits (currently six), two heap leach facilities
and a CIL plant. Geology: The ore body at
Tarkwa consists of a series of sedimentary
banket quartz reef units (conglomerates) of
the Tarkwaian System that are very similar to
those mined in the Witwatersrand Basin of
South Africa. The operation is currently mining
multiple reef horizons from open-pits and there
is potential for underground mining in the future.
Employees
in service: 1,805 permanent
employees, 44
temporary employees and
2,846 contractors.
SAFETY AND ENVIRONMENT
The general safety performance of Tarkwa
improved year on year with no fatalities,
while the lost day injury frequency rate was
unchanged at 0.26. The Safe Production Rules
programme was formally launched in May 2009
by management, union representatives and
safety officials. This event was successful in
creating a high degree of awareness.
Tarkwa also
retained
its
ISO14001:2004
(Environmental Management System) certification
following an external audit during the year. The
mine also retained its full compliance to the ICMI
Cyanide Code.
F2010 Focus Areas
(cid:115)(cid:0) (cid:52)(cid:72)(cid:69)(cid:0)(cid:35)(cid:41)(cid:44)(cid:0)(cid:69)(cid:88)(cid:80)(cid:65)(cid:78)(cid:83)(cid:73)(cid:79)(cid:78)(cid:0)(cid:80)(cid:82)(cid:79)(cid:74)(cid:69)(cid:67)(cid:84)(cid:0)(cid:73)(cid:83)(cid:0)(cid:69)(cid:88)(cid:80)(cid:69)(cid:67)(cid:84)(cid:69)(cid:68)(cid:0)(cid:84)(cid:79)(cid:0)
increase throughput to one million tons of
ore per month on a sustainable basis;
(cid:115)(cid:0) (cid:52)(cid:72)(cid:69)(cid:0) (cid:40)(cid:73)(cid:71)(cid:72)(cid:0) (cid:48)(cid:82)(cid:69)(cid:83)(cid:83)(cid:85)(cid:82)(cid:69)(cid:0) (cid:39)(cid:82)(cid:73)(cid:78)(cid:68)(cid:73)(cid:78)(cid:71)(cid:0) (cid:50)(cid:79)(cid:76)(cid:76)(cid:83)(cid:0) (cid:80)(cid:73)(cid:76)(cid:79)(cid:84)(cid:0)
project to start processing by second
quarter F2010; and
(cid:115)(cid:0) (cid:47)(cid:86)(cid:69)(cid:82)(cid:65)(cid:76)(cid:76)(cid:0)(cid:83)(cid:84)(cid:82)(cid:73)(cid:80)(cid:0)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:0)(cid:73)(cid:83)(cid:0)(cid:69)(cid:88)(cid:80)(cid:69)(cid:67)(cid:84)(cid:69)(cid:68)(cid:0)(cid:84)(cid:79)(cid:0)(cid:73)(cid:78)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:69)(cid:0)
to 5.3.
OPERATIONAL REVIEW
Gold produced decreased by five per cent from
646,000 ounces in F2008 to 612,000 ounces
in F2009. This was due to teething problems
encountered during commissioning of the CIL
expansion plant in mid-year and the slightly
lower grades mined.
Tons processed decreased from 22.04 million
in F2008 to 21.27 million in F2009. This was
mainly due to a decrease in tons treated at the
South heap as this ore was treated at the new
CIL plant to improve its recovery. However,
despite an increase in tons milled at the CIL
plant, the teething problems and the slightly
lower grade did not offset the decrease in
production from the heap leach facility.
Tons mined increased from 113.3 million to
132.6 million and ore mined increased from
19.9 million tons to 21.7 million tons.
Revenue increased from US$532 million in
F2008 to US$537 million in F2009. Revenue
from the higher gold price was partially offset by
the lower gold production.
Operating costs,
including gold-in-process
movements, increased by 15 per cent from
US$278 million in F2008 to US$320 million
in F2009. This increase was mainly due to
increased milling at the expanded CIL plant,
which required additional ball mill grinding
media, increased power and diesel inputs,
together with the increase in tons mined.
Total cash cost increased from US$430 per
ounce in F2008 to US$521 per ounce in
F2009 as a result of the higher costs and lower
production.
Operating profit, before amortisation, decreased
from US$253 million in F2008 to US$217 million
in F2009. Operating margin decreased from
48 per cent in F2008 to 40 per cent in F2009.
decreased
expenditure
from
Capital
US$212 million in F2008 to US$201 million in
F2009. The majority of this expenditure was
for the completion of the CIL plant expansion,
ongoing pre-stripping, increasing the primary
mining fleet and relocation of a power sub-
station.
Notional cash expenditure
from
US$766 per ounce in F2008 to US$881 per
ounce in F2009.
increased
F2010 Focus Areas
(cid:115)(cid:0) (cid:52)(cid:72)(cid:69)(cid:0)(cid:79)(cid:80)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:65)(cid:76)(cid:0)(cid:70)(cid:79)(cid:67)(cid:85)(cid:83)(cid:0)(cid:87)(cid:73)(cid:76)(cid:76)(cid:0)(cid:66)(cid:69)(cid:0)(cid:79)(cid:78)(cid:0)(cid:65)(cid:67)(cid:81)(cid:85)(cid:73)(cid:82)(cid:73)(cid:78)(cid:71)(cid:0)
installing a secondary crusher,
and
and
maintaining plant
optimising throughput volumes.
efficiencies,
(cid:115)(cid:0) (cid:55)(cid:73)(cid:84)(cid:72)(cid:0)(cid:82)(cid:69)(cid:78)(cid:69)(cid:87)(cid:69)(cid:68)(cid:0)(cid:70)(cid:79)(cid:67)(cid:85)(cid:83)(cid:0)(cid:79)(cid:78)(cid:0)(cid:71)(cid:82)(cid:79)(cid:87)(cid:73)(cid:78)(cid:71)(cid:0)(cid:36)(cid:65)(cid:77)(cid:65)(cid:78)(cid:71)(cid:12)(cid:0)
the F2010 drilling campaign is targeting
27,600 metres of reverse circulation and
17,250 metres of diamond drilling at a
total estimated cost of US$10 million.
32
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
REVIEW OF OPERATIONS: WEST AFRICA REGION
continued
Damang Gold Mine
Fatality free year.
Increased gold production.
OPERATIONAL REVIEW
Gold produced increased by three per cent from
194,000 ounces in F2008 to 200,000 ounces
in F2009. This was due to the build up of the
crushed ore stockpile in F2008, which resulted
in a consistent feed to the mill in F2009. Thus,
tons milled increased from 4.52 million tons in
F2008 to 4.99 million tons in F2009.
OVERVIEW
Location: Damang is located in southwestern
Ghana, approximately 300 km by road, west
of Accra, the capital, at a latitude 5°11’N and
longitude 1°57’W. It is situated some 30 km
north of the town of Tarkwa with reasonable
access roads and an established infrastructure.
The mine is served by a main road connecting
Tons mined decreased from 31.4 million tons
to 19.5 million tons as a result of mining the
deeper, higher-grade Damang pit cutback. Ore
mined increased from 4.1 million tons in F2008
to 4.4 million tons in F2009.
Revenue increased from US$160 million in
F2008 to US$176 million in F2009 resulting from
to the port of Takoradi, some 90 km to the
the higher gold price received and increased
southeast. Infrastructure: Multiple open pits,
production.
surface stockpile sources and a CIL plant.
Geology: The Damang Gold Mine exploits
Operating costs,
including gold-in-process
oxide and fresh hydrothermal mineralisation in
movements, increased by 20 per cent from
addition to Witwatersrand style, palaeoplacer
US$108 million in F2008 to US$130 million
mineralisation similar to that of the Tarkwa Gold
in F2009. This increase was mainly due to
Mine. Employees in service: 407 permanent
increased mining of
the more expensive
employees, 1,101 contractors.
Damang pit cutback and
increased mill
consumable costs.
SAFETY AND ENVIRONMENT
Damang Gold Mine experienced another good
Total cash cost increased from US$551 per
safety year and the mine remains fatality free
ounce in F2008 to US$660 per ounce in F2009
since acquisition by Gold Fields. The mine has
as a result of the higher costs.
shown an improvement in safety, evident in the
Lost Day Injury Frequency Rate improving from
Operating profit, before amortisation, decreased
0.68 to 0.37. This achievement has earned
from US$53 million in F2008 to US$46 million
the mine the prestigious Chairman’s Award for
the best safety improvement over a three year
in F2009. Operating margin decreased from
33 per cent in F2008 to 26 per cent in F2009.
period.
The mine’s safety management system has
been OHSAS18001 certified since 2006 and
re-certification was achieved
following an
external audit conducted in May 2009. Damang
also retained its ISO14001:2004 (Environmental
Management System) certification following an
external audit during the year, and remains fully
compliant to the ICMI Cyanide Code.
Capital
expenditure
decreased
from
US$28 million in F2008 to US$17 million
in F2009. The decrease was mainly due to
higher Damang pit cutback development
costs in F2008. The majority of expenditure in
F2009 was for upgrading the primary crusher,
exploration drilling and developing the Rex pit.
Notional cash expenditure decreased from
US$753 per ounce in F2008 to US$745 per
ounce in F2009.
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
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Tarkwa Gold Mine
2009
2008
2007
per million man hours worked
Lost Day Injury Frequency Rate
Open pit mining
Waste mined
Ore mined
Head grade
Strip ratio
Processing
Tons processed
Yield
Gold produced
Milled
Heap leach
Total
Milled
Heap leach
Combined
Milled
Heap leach
Total
Total
Total cash costs
Notional cash expenditure
Net attributable earnings
Capital expenditure
Damang Gold Mine
Open pit mining
Waste mined
Ore mined
Head grade
Strip ratio
Processing
Tons milled
Yield
Gold produced
Total cash costs
Notional cash expenditure
Net attributable earnings
Capital expenditure
’000t
000t
g/t
W:O
’000t
’000t
’000t
g/t
g/t
g/t
’000oz
’000oz
’000oz
kg
US$/oz
US$/oz
US$m
US$m
’000t
’000t
g/t
W:O
’000t
g/t
kg
’000oz
US$/oz
US$/oz
US$m
US$m
110,895
21,689
1.1
5.1
93,440
19,901
1.2
4.7
85,508
22,074
1.2
4.0
7,733
13,540
21,273
5,571
16,464
22,035
5,620
17,019
22,639
1.4
0.7
0.9
314
298
612
19,048
521
881
71.1
201.1
1.5
0.7
0.9
267
379
646
20,095
430
766
105.1
212.0
1.5
0.8
1.0
272
425
697
21,684
333
512
83.1
107.7
2009
2008
2007
15,057
4,402
1.34
3.42
27,330
4,092
1.43
6.7
28,109
3,141
1.20
9.0
4,991
4,516
5,269
1.2
6,233
200
660
745
6.5
16.9
1.3
6,041
194
551
753
18.4
28.1
1.1
5,843
188
473
637
11.4
31.7
1.0
0.5
8
6
.
0
7
3
0
.
8
3
0
.
1
3
0
.
6
2
0
.
6
2
0
.
0.0
Tarkwa
Damang
Total
West Africa
2008
2009
Serious Injury Frequency Rate
per million man hours worked
2.0
1.0
4
5
.
1
3
3
.
1
9
9
.
0
8
8
.
0
8
7
.
0
7
6
.
0
0
Tarkwa
Damang
Total
West Africa
2008
2009
34
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
REVIEW OF OPERATIONS: AUSTRALASIA REGION
F2009
Achievements
(cid:115)(cid:0) (cid:48)(cid:82)(cid:79)(cid:74)(cid:69)(cid:67)(cid:84)(cid:83)(cid:0)(cid:68)(cid:69)(cid:76)(cid:73)(cid:86)(cid:69)(cid:82)(cid:69)(cid:68)(cid:0)
at St Ives.
(cid:115)(cid:0) (cid:50)(cid:65)(cid:77)(cid:80)(cid:0)(cid:85)(cid:80)(cid:0)(cid:79)(cid:70)(cid:0)
Waroonga production
at Agnew successful.
(cid:115)(cid:0) (cid:37)(cid:88)(cid:80)(cid:76)(cid:79)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:83)(cid:85)(cid:67)(cid:67)(cid:69)(cid:83)(cid:83)(cid:0)
delivers one million
ounces of reserve at
St Ives.
Glenn Baldwin
Executive Vice President: Head of Australasia Region
The safety performance of the Australian operations improved signifi cantly, with a reduction in the
serious injury frequency rate by 32 per cent, and the operations remained fatal accident free, again.
Various safety initiatives driven during the year included a standardised approach to safety reporting,
focus on hazard identifi cation and immediate remediation, and changing the approach to incident
investigation. Through the actions of improved communication with employees, perception audits,
cultural safety change training and the development of personal values, the safety philosophy of
“if we cannot mine safely, we will not mine” was embedded into the organisation. The operations
continue to seek the position as the safety benchmark operation in the global gold mining industry.
Our responsibility toward the environment is equally believed, including achievement of substantial
Cyanide Code compliance at both operations during the year. Furthermore, energy effi ciency
projects were designed and implemented, and started to drive the operations to best practice over
the next three years.
Stakeholder engagement remains a key focus, specifi cally with the operational imperative
of maintaining our licence to operate. While the work with members of our various immediate
communities to protect areas of archeological and ethnic signifi cance remains a strategic imperative,
the operations form part of the Australian employment collective and therefore recruit across the
country. One example of contributing away from our immediate mine boundary, but where some
of our employees were affected, was at the time of the bushfi res in the state of Victoria at the
beginning of 2009: the fi res caused havoc and many vehicles were destroyed by the blaze. Agnew
donated vehicles to assist with the clean-up and rebuilding of the region.
The growth of Gold Fields internationally has led to the introduction of human resources best
practices across the regions, especially in Australasia. The diversity of skills required in the Australian
mines is large because of the different styles of mining (both open pit and underground) plus the
various roster systems (fl y-in/fl y-out and residential). I believe we have risen to the challenge and we
now have in place highly profi cient teams at each operation as well as much stronger technical and
administrative capacity centrally in Perth.
At St Ives, F2009 gold production was higher at nearly 430,000 ounces, mainly as a result of
the Belleisle and Cave Rocks underground mines and the Leviathan open pit mine achieving full
production. In addition, the mine implemented the underground development improvement project
which focused on productivity and cost optimisation initiatives. During August 2009, the royalty
payable by Gold Fields’ wholly-owned Australian subsidiary, St Ives Gold Mining Company (Pty)
Limited, was terminated for a consideration of A$308 million. This transaction positively transforms
the cost profi le of St Ives, placing it fi rmly within the bottom half of the Australian gold cost curve,
allowing this operation to benefi t fully from the higher gold price.
While Agnew remains a stable producer, gold production decreased to 192,000 ounces in F2009
due to the closure of the Songvang pit and completion of stockpile processing. Demands on both
capital and operating costs have been high, but the various programmes that were implemented
successfully increased productivity and reduced costs. The mine was positioned in the fi rst quartile
of the Australian gold producers NCE cost curve, at year end.
The Australasia Region is gearing up for its next phase of development. The key focus areas at the
existing mines are the St Ives Athena Project, which is planned to be the fourth underground mine.
The Athena complex has in excess of 1.5 million ounces of gold in inventory and the fi rst signifi cant
ore reserve will be declared in September 2009. At Agnew, the life of mine optimisation project will
convert resource to reserve in the Waroonga complex and the completion of infrastructure projects
is designed to mitigate productivity losses at depth. Strategically, we are well positioned to grow
Gold Fields’ production in Australasia with an aggressive and geographically diversifi ed greenfi elds
exploration portfolio, including projects in the Philippines.
Our strategy is to contribute to the Gold Fields vision by realising maximum value from our existing
mines and growing to a one million ounce producer by 2014. This goal must be achieved by living
the value system, specifi cally on the platform of no harm to any one employee, stakeholder or the
environment.
Glenn Baldwin
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
35
35
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St Ives Gold Mine
(cid:3)(cid:3)(cid:45)(cid:72)(cid:91)(cid:72)(cid:83)(cid:80)(cid:91)(cid:96)(cid:20)(cid:77)(cid:89)(cid:76)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:19)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:58)(cid:76)(cid:89)(cid:80)(cid:86)(cid:92)(cid:90)(cid:3)
Injury Frequency Rate
improves by 32 per cent.
Brought the Belleisle and
Cave Rocks underground
mines into full production.
Completed conceptual study
for Athena, accelerated
development plan started.
Management System) certification. Post year end
F2009. Operating margin increased from 27 per
the mine was awarded full ICMI Cyanide Code
cent in F2008 to 33 per cent in F2009.
compliance.
OPERATIONAL REVIEW
Gold produced increased by two per cent from
Capital
expenditure
decreased
from
A$120 million in F2008 to A$93 million in
F2009. The majority of this expenditure was on
418,000 ounces in F2008 to 428,000 ounces
development for the underground operations
in F2009. This was due to the Belleisle and
at Argo and Cave Rocks, and continuing
Cave Rocks underground mines achieving full
exploration expenditure, mainly on the Athena
production in September and December 2008
project complex.
respectively, as well as the Leviathan pit cutback
which achieved full production in January 2009.
Notional cash expenditure
increased
from
A$932 per ounce in F2008 to A$1,023 per
Tons milled at Lefroy increased from 4.65 million
ounce in F2009.
in F2008 to 4.82 million in F2009. The Lefroy mill
operation benefited from various value adding
projects, which included the optimisation of
OVERVIEW
Location: The St Ives operations extend from
the blending strategy and improved tailing
deposition. Heap leach feed decreased from
5 to 25 km south-southwest of the town of
2.59 million tons to 2.44 million tons.
Kambalda in Western Australia, approximately
F2010 Focus Areas
(cid:115)(cid:0) (cid:45)(cid:65)(cid:73)(cid:78)(cid:84)(cid:65)(cid:73)(cid:78)(cid:73)(cid:78)(cid:71)(cid:0) (cid:47)(cid:51)(cid:40)(cid:33)(cid:51)(cid:17)(cid:24)(cid:16)(cid:16)(cid:17)(cid:0) (cid:47)(cid:67)(cid:67)(cid:85)(cid:80)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:65)(cid:76)(cid:0)
and Health Management
Safety
and
ISO14001:2004
(Environmental
630 km east of Perth. Located at approximately
Tons mined decreased from 35.8 million to
Management Systems);
latitude 31°12’S and
longitude 121°40’E,
31.8 million and ore mined increased from 6.04
the nearest major settlement is the town of
million tons in F2008 to 7.02 million tons in
(cid:115)(cid:0) (cid:35)(cid:79)(cid:77)(cid:80)(cid:76)(cid:69)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0)
(cid:84)(cid:72)(cid:69)(cid:0) (cid:33)(cid:84)(cid:72)(cid:69)(cid:78)(cid:65)(cid:0) (cid:85)(cid:78)(cid:68)(cid:69)(cid:82)(cid:71)(cid:82)(cid:79)(cid:85)(cid:78)(cid:68)(cid:0)
mine feasibility study and commence
Kalgoorlie situated 80 km north. Infrastructure:
F2009. The majority of the increase was due to
development;
(cid:115)(cid:0) (cid:41)(cid:78)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:73)(cid:78)(cid:71)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:51)(cid:84)(cid:0)(cid:41)(cid:86)(cid:69)(cid:83)(cid:0)(cid:45)(cid:73)(cid:78)(cid:69)(cid:82)(cid:65)(cid:76)(cid:0)(cid:50)(cid:69)(cid:83)(cid:69)(cid:82)(cid:86)(cid:69)(cid:83)(cid:0)(cid:84)(cid:79)(cid:0)
six years and resources to 12 years;
(cid:115)(cid:0) (cid:35)(cid:79)(cid:78)(cid:84)(cid:73)(cid:78)(cid:85)(cid:73)(cid:78)(cid:71)(cid:0)(cid:84)(cid:79)(cid:0)(cid:73)(cid:77)(cid:80)(cid:76)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:69)(cid:70)(cid:108)(cid:67)(cid:73)(cid:69)(cid:78)(cid:67)(cid:73)(cid:69)(cid:83)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)
cost reductions; and
(cid:115)(cid:0) (cid:45)(cid:65)(cid:78)(cid:65)(cid:71)(cid:73)(cid:78)(cid:71)(cid:0)(cid:68)(cid:73)(cid:76)(cid:85)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:82)(cid:69)(cid:67)(cid:79)(cid:86)(cid:69)(cid:82)(cid:73)(cid:69)(cid:83)(cid:14)
Ore is currently mined from three underground
an increase in ore from the newly commissioned
mines, three open pits and 10 surface stockpile
Cave Rocks and Belleisle underground mines,
sources, and processed via both mill/CIP
and production from Leviathan open pit.
and heap leach plants. Geology: Structurally
controlled hydrothermal gold deposits situated
Revenue increased from A$381 million in
in
the Norseman-Wiluna Greenstone Belt,
F2008 to A$512 million in F2009, resulting from
which is part of the Yilgarn Craton, a 2.6Ga
the higher gold price received and increased
granite-greenstone terrain in Western Australia.
production.
Employees in service: The mine has 263
permanent employees and 658 contractors.
Operating costs,
including gold-in-process
movements, increased by 24 per cent from
SAFETY AND ENVIRONMENT
St Ives remained fatality free for F2009; but
A$277 million in F2008 to A$344 million in
F2009. This increase was mainly due to the
unfortunately recorded two serious injuries during
impact of the full Morgan Stanley Royalty for the
the year and the lost day injury frequency rate
year, at A$46 million, together with increases
decreased from 0.43 in F2008 to zero this year.
in input cost, principally labour and external
The primary focus is to eliminate injuries through
services, partially offset by lower fuel costs.
critical hazard controls together with the continued
implementation of an intervention designed to
Total cash cost increased from A$649 per
influence safety performance.
ounce in F2008 to A$805 per ounce in F2009
The mine maintained AS4801:2000 Occupational
Health and Safety Management System
Operating profit, before amortisation, increased
certification and ISO14001:2004 (Environmental
from A$105 million in F2008 to A$168 million in
as a result of the higher operation costs.
36
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
REVIEW OF OPERATIONS: AUSTRALASIA REGION
continued
Agnew Gold Mine
The mine maintained
certification
for
Operating profit, before amortisation, increased
AS4801:2000 Occupational Safety and Health
from A$74 million in F2008 to A$125 million in
Management System, and
ISO14001:2004
F2009. Operating margin increased from 39 per
(Environmental Management Standard). It was
cent in F2008 to 55 per cent in F2009.
Fatal Injury free again.
also awarded substantial ICMI Cyanide Code
Compliance.
Waroonga production
increased by 45 per cent.
Kim Lode production
increased by 40 per cent.
Substantial plant
maintenance completed,
including planned major mill
works.
OVERVIEW
Location: Agnew is located 23 km west of
the town of Leinster in Western Australia,
approximately 375 km north of Kalgoorlie and
1,000 km (by road) northeast of Perth at latitude
27°55`S and longitude 120°42`E. The mine is
served by a network of sealed roads and an
all weather airstrip at Leinster. Infrastructure:
Ore is currently mined from the Kim and Main
ore bodies which form part of the Waroonga
underground mining complex. Processing
is via one CIP plant with 1.3 Mtpa capacity.
Geology: Structurally controlled hydrothermal
gold deposits situated
in
the Norseman-
Wiluna Greenstone Belt which is part of the
Capital
expenditure
increased
from
A$37 million in F2008 to A$42 million in F2009.
A significant amount of effort
regarding
The majority of this increase related to the
environmental management and reporting has
Cyanide Code compliance project, additional
resulted in the site achieving an impressive
capital development and ventilation upgrades.
run of no significant environmental incidents in
On- mine exploration amounted to A$18 million.
F2009.
OPERATIONAL REVIEW
Gold produced decreased by six per cent from
204,000 ounces in F2008 to 192,000 ounces
in F2009. This was due to the completion of
processing of Songvang stockpiles by mid
F2009, with 94 per cent of production sourced
from the Waroonga underground complex
Notional cash expenditure
increased
from
A$634 per ounce in F2008 to A$743 per ounce
in F2009.
F2010 Focus Areas
containing the Kim and Main lodes.
(cid:115)(cid:0) (cid:45)(cid:65)(cid:73)(cid:78)(cid:84)(cid:65)(cid:73)(cid:78)(cid:0) (cid:65)(cid:0) (cid:67)(cid:79)(cid:78)(cid:83)(cid:73)(cid:83)(cid:84)(cid:69)(cid:78)(cid:84)(cid:0) (cid:80)(cid:82)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0) (cid:82)(cid:65)(cid:84)(cid:69)(cid:0)
throughout the year;
Tons milled decreased from 1.32 million in
F2008 to 1.07 million in F2009. This was due
to the depletion of the low grade Songvang
stockpiles.
Underground ore tons mined increased from
0.51 million in F2008 to 0.74 million in F2009.
This increase was at the Waroonga Complex
where a step change in production volumes
occurred in F2009.
Revenue increased from A$188 million in F2008
to A$230 million in F2009. The higher gold
price received was partially offset by the lower
(cid:115)(cid:0) (cid:37)(cid:88)(cid:80)(cid:76)(cid:79)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0) (cid:79)(cid:70)(cid:0)
(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)
underground and surface to convert
(cid:84)(cid:72)(cid:69)(cid:0) (cid:43)(cid:73)(cid:77)(cid:0) (cid:44)(cid:79)(cid:68)(cid:69)(cid:0)
resources to reserves;
(cid:115)(cid:0) (cid:35)(cid:79)(cid:78)(cid:84)(cid:73)(cid:78)(cid:85)(cid:69)(cid:0) (cid:69)(cid:88)(cid:80)(cid:76)(cid:79)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0) (cid:65)(cid:84)(cid:0) (cid:45)(cid:65)(cid:82)(cid:73)(cid:65)(cid:0) (cid:46)(cid:79)(cid:82)(cid:84)(cid:72)(cid:12)(cid:0)
the mine corridor
Cinderella and
conglomerate; and
(cid:115)(cid:0) (cid:33)(cid:0)(cid:83)(cid:69)(cid:82)(cid:73)(cid:69)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:83)(cid:84)(cid:85)(cid:68)(cid:73)(cid:69)(cid:83)(cid:0)(cid:87)(cid:73)(cid:76)(cid:76)(cid:0)(cid:66)(cid:69)(cid:0)(cid:67)(cid:79)(cid:78)(cid:68)(cid:85)(cid:67)(cid:84)(cid:69)(cid:68)(cid:0)(cid:79)(cid:78)(cid:0)
the infrastructure at Waroonga with the
view to developing a five-year life of mine
plan.
Yilgarn Craton, a 2.6Ga granite-greenstone
production.
terrain. Employees in service: The mine has
140 permanent employees and 200 contractors.
Operating costs,
including gold-in-process
SAFETY AND ENVIRONMENT
Agnew incurred four lost time injuries in F2009,
movements, decreased by 10 per cent from
A$115 million in F2008 to A$104 million in
F2009. This decrease was mainly due to lower
and
it
reduced medically
treated
injuries
processing volumes due to the depletion of the
from fifteen in F2008 to seven in F2009. The
Songvang stockpiles and credits received on
operation has remained fatality free since
two toll treatment parcels to utilise spare mill
acquisition. A Zero Incident Process (ZIP)
capacity in the second half of the year.
programme was rolled out in F2009, with 70 per
cent of employees completing the programme
thus far, while the remainder will complete
the programme in F2010. This is designed to
complement the various other safety initiatives
at Agnew.
Total cash cost increased from A$496 per
ounce in F2008 to A$541 per ounce in F2009
as a result of the lower production.
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
37
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:
Lost Day Injury Frequency Rate
Australia consolidated
per million man hours worked
Net earnings
A$m
St Ives Gold Mine
2.0
2.0
1.0
1.0
Open pit mining
Waste mined
Ore mined
Head grade
Strip ratio
Underground mining
Ore mined
Head grade
Processing
Tons processed
Yield
Gold produced
Total cash costs
Milled
Heap leach
Total
Milled
Heap leach
Total
3
4
.
0
6
2
.
0
0
0
0
0
0
0
Agnew
Agnew
St Ives
St Ives
Total Australasia
Total Australasia
Notional cash expenditure
2008
2009
Capital expenditure
Serious Injury Frequency Rate
per million man hours worked
Agnew Gold Mine
Open pit mining
Waste mined
Ore mined
Head grade
Strip ratio
Underground mining
Ore mined
Head grade
Processing
Tons milled
Yield
Gold produced
Total cash costs
Notional cash expenditure
Capital expenditure
2.5
2.0
1.5
1.0
0.5
0.0
7
1
.
2
1
8
1
.
9
3
1
.
4
4
9
.
9
1
.
0
0
0
.
0
Agnew
St Ives
Total Australasia
2008
2009
’000t
’000t
g/t
W:O
’000t
g/t
’000t
’000t
’000t
g/t
g/t
g/t
kg
’000oz
A$/oz
US$/oz
A$/oz
US$/oz
A$m
’000t
’000t
g/t
W:O
’000t
g/t
’000t
g/t
kg
’000oz
A$/oz
US$/oz
A$/oz
US$/oz
A$m
i
B
u
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n
e
s
s
R
e
v
e
w
s
i
–
R
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s
:
l
A
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a
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s
a
R
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g
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i
i
2009
94.3
2008
41.2
2007
52.8
2009
2008
2007
24,801
5,799
1.52
4.31
29,778
5,143
1.71
5.79
26,828
3,928
2.23
6.83
1,222
5.06
4,821
2,441
7,262
2.5
0.5
1.8
901
5.15
4,647
2,586
7,233
2.5
0.6
1.8
1,336
5.28
4,669
2,090
6,759
3.0
0.5
2.2
13,322
428
12,992
418
15,146
487
805
596
1,023
757
649
582
932
836
92.9
120.3
540
424
738
579
96.6
2009
2008
2007
–
–
–
–
737
7.94
1,066
5.6
5,974
192
541
401
743
550
41.6
191
202
3.24
0.95
505
9.34
1,315
4.8
6,336
204
496
445
634
568
37.0
9,315
1,532
2.58
6.08
394
11.69
1,323
5.0
6,605
212
377
295
602
473
36.3
38
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
REVIEW OF OPERATIONS: SOUTH AMERICA REGION
F2009
Achievements
(cid:115)(cid:0) (cid:0)(cid:45)(cid:73)(cid:78)(cid:69)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:80)(cid:76)(cid:65)(cid:78)(cid:84)(cid:0)(cid:83)(cid:84)(cid:69)(cid:65)(cid:68)(cid:89)(cid:0)
at design level.
(cid:115)(cid:0) (cid:37)(cid:88)(cid:67)(cid:69)(cid:76)(cid:76)(cid:69)(cid:78)(cid:84)(cid:0)(cid:83)(cid:65)(cid:70)(cid:69)(cid:84)(cid:89)(cid:0)(cid:82)(cid:69)(cid:67)(cid:79)(cid:82)(cid:68)(cid:14)
(cid:115)(cid:0) (cid:44)(cid:65)(cid:83)(cid:0)(cid:33)(cid:81)(cid:85)(cid:73)(cid:76)(cid:65)(cid:83)(cid:0)(cid:67)(cid:79)(cid:78)(cid:83)(cid:84)(cid:82)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)
on-track.
Juan Luis Kruger
Executive Vice President: Head of South America Region
F2009 was indeed a signature year for Gold Fields in the South America Region. During the fi rst
half of the year the main driving force was the need to complete the commissioning and ramp-up
of the Cerro Corona mine, which is owned by Gold Fields’ La Cima S.A., a subsidiary of Gold Fields
in which the Group has an 80.7 per cent interest. The commissioning and production ramp-up
went particularly smoothly, with the plant fi rst achieving its nameplate throughput of 500,000 tons
of ore per month, or 6.2 million tons per annum, by the end of December 2008, and steady state
production at this level, on a consistent basis, by the end of the March quarter 2009.
This is a signifi cant achievement when one considers that, prior to this project, Gold Fields
had limited operating experience in South America, and that the Cerro Corona mine site is in a
geographically challenging and remote location – between 4,000 and 5,000 metres above sea
level, in the Andes mountains of Northern Peru. I am particularly proud of the team that displayed
considerable skill, determination and perseverance, often against signifi cant odds, to get this mine
to full production in a relatively short period of time.
I am also pleased that not once during the construction phase, or since, has any member of the
Cerro Corona team wavered on the very stringent safety procedures and protocols in place at the
mine site, which is a trademark of the Gold Fields Group.
Cerro Corona has also established itself in a short space of time as a leader in the fi eld of sustainable
development in the region, with a number of innovative new projects at the mine site and in the
surrounding communities. These projects include infrastructure and sustainable development
initiatives aimed at improving the quality of life of the population in the areas of direct infl uence of
the operation, which range from road construction, rural electrifi cation, potable water, education
and health care programmes, to training and employment opportunities for local workers, together
with the development of self sustaining economic activities such as dairy cattle and a blueberry
plantation. These projects have contributed to the development of the Hualgayoc region and have
resulted in Cerro Corona being awarded with public recognition, strengthening the Gold Fields
brand in Peru. Employee well-being is also a signifi cant component of the sustainable development
efforts, with programmes in place to address issues such as accommodation, sport and recreation,
health care and the spiritual and social needs of employees.
A commitment to exemplary environmental management is a key aspect of the Gold Fields approach
to sustainable development, and is a value that we fully embrace in the South America Region. At
the Cerro Corona mine we have established an independent advisory committee consisting of
external experts to advise us on all facets of the construction of the tailings management facility at
the mine. Activities that are reviewed by this committee include the construction of the facility, the
placement of tailings, as well as water quality and quantity issues.
Now that the Cerro Corona mine has reached steady state production, our focus has shifted to the
optimisation of the site and the improvement of effi ciencies, including cost management. We also
believe that the processing plant has the potential to exceed its nameplate capacity and we will
during F2010 be pursuing opportunities to increase throughput and production.
The Cerro Corona mine provides Gold Fields with a strong operational foothold in the South
America Region. Gold Fields is targeting to have at least one million ounces in development or
production in the region within four to fi ve years. A very promising pipeline of growth opportunities
exists in South America. The fi rst opportunity is the possibility of growing the reserve base at
the Cerro Corona mine by converting existing resources to reserves. This work is underway and,
if successful, is expected to have a positive impact on both the production profi le and the life
of mine. A second opportunity is an exploration joint venture between Gold Fields La Cima S.A.
and Compañía de Minas Buenaventura S.A.A. (Consolidada de Hualgayoc) on a signifi cant land
package, which includes a number of targets, surrounding the Cerro Corona mine site. Gold Fields
has other greenfi elds exploration projects in the South America Region, including the Chucapaca
Project in Southern Peru, which is a promising advanced stage exploration project which Gold
Fields is pursuing through its fully owned exploration subsidiary, Minera Gold Fields Peru S.A. in
partnership with Compañía de Minas Buenaventura. Furthermore, Gold Fields is also pursuing two
growth opportunities in Central Chile, in the Maricunga belt, a highly endowed area of this country.
Juancho Kruger
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
39
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Cerro Corona Mine
Completed construction and
reached design capacity.
Construction of second
phase tailings underway.
Focus on production and
cost optimisation advanced.
OVERVIEW
Location: The Cerro Corona Mine is situated in
the highest part of the Western Cordillera of the
Andes in northern Peru, 1.5 km west-northwest
of the village of Hualgayoc in the Department
of Cajamarca, centred at longitude 78° 37’
8” W and latitude 6° 45’ 36” S. The mine is
located approximately 600 km north-northeast
of Lima and approximately 80 km by road north
of the city of Cajamarca. Access is by road
from Cajamarca. Infrastructure: The project
involves the production of gold and copper by
conventional open pit mining methods, and the
copper-gold flotation concentrate is trucked to
the Port of Salaverry for shipment to smelters
in Japan, Korea and Europe. Geology: The
Cerro Corona Cu-Au deposit is a Porphyry-
style mineralisation hosted by a 600-700
metre diameter sub-vertical cylindrical-shaped
diorite porphyry emplaced in mid-Cretaceous
limestone, marls and siliclastic rocks. Mine type
and depth: Large open pit mine. Employees
in service: The mine has 310 permanent
employees and 560 contractors active on
the operations and currently there are 40
employees and approximately 900 contractors
on various capital projects.
SAFETY AND ENVIRONMENT
Cerro Corona experienced a significant
improvement in safety performance in F2009
compared to the previous year, with the Lost
Day Injuries down from 12 to 2, Medically
Treated Injuries down from 21 to 11, and zero
fatalities. The lost day injury frequency rate
improved from 0.96 in F2008 to 0.25 in F2009.
Management has
focused on promoting
a culture of safety awareness among all
employees and contractors to further continue
improvements in the mine´s safety performance.
A new hazard reporting system was successfully
implemented during the March quarter.
Implementation also began on the OHSAS
18001 Health and Safety Management
System with the objective of further reducing
injuries, occupational illness and property
damage as well as process losses. The
certification of the programme is expected
to be obtained by the end of F2010. The
ISO14001:2004 (Environmental Management
System) certification process was initiated in
F2009 and final certification is planned for
early 2010.
The sustainable development programmes,
together with
infrastructure development
projects for the local communities, and the
employment of local people and contractors,
have been the three pillars of the social
strategy, which has created strong goodwill
for Gold Fields in the region. Commitments to
the surrounding communities have been met
and have allowed Cerro Corona to enhance its
relationships with local groups inside its area of
influence.
During F2009, we received two important
awards
for our safety and environmental
performance. We were placed second in the
National Pit Safety Awards presented by the
Peruvian National Institute of Mine Engineers
and we achieved second position at the
Expomina national contest for environmental
practices and projects.
OPERATIONAL REVIEW
The year marked the transition of Cerro Corona
from a project phase to a fully functional mining
operation. Construction of the project was
completed in July 2008 for a total construction
cost of US$545 million. Commissioning and
production build-up of the operation followed
and was completed by the end of the first
quarter, with the first shipment of a parcel of
4,026 wet metric tons of concentrate. Cerro
Corona reached design capacity by the end of
December 2008 and steady state operations
were reached during the third quarter of F2009.
Construction of the second phase of the tailings
dam started in late August 2008, while planned
levels should be achieved in December 2009.
Gold produced for the nine months to year
end, since the mine became operational,
to 105,000 ounces. Copper
amounted
to 23,947
production amounted
tons.
Converting the copper production to equivalent
gold ounces was based on an average copper
price of US$4,115 per ton and an average
gold price of US$875 per ounce and resulted
in production for F2009 of 219,000 equivalent
ounces, of which 218,000 equivalent ounces
were sold.
Tons milled amounted to 4.55 million, producing
119,000 tons of concentrate.
Total tons mined amounted to 9.9 million which
included 5.0 million tons of ore.
Revenue amounted
to US$184 million.
Costs, including gold-in-process movements,
amounted to US$82 million. The operating
profit of US$102 million resulted in an operating
margin of 55 per cent for F2009.
Total cash cost for F2009 averaged US$369
per ounce based on equivalent ounces.
decreased
expenditure
Capital
from
US$348 million in F2008 to US$117 million in
F2009 due to achieving commercial levels of
production at the end of the December quarter.
The majority of the expenditure during F2009,
other than on the project phase, was incurred
on the Tailing Management Facility (TMF).
Notional cash expenditure for F2009 was
US$926 per ounce.
F2010 Focus Areas
(cid:115)(cid:0) (cid:52)(cid:79)(cid:0) (cid:79)(cid:66)(cid:84)(cid:65)(cid:73)(cid:78)(cid:0) (cid:41)(cid:51)(cid:47)(cid:17)(cid:20)(cid:16)(cid:16)(cid:17)(cid:26)(cid:18)(cid:16)(cid:16)(cid:20)(cid:0) (cid:67)(cid:69)(cid:82)(cid:84)(cid:73)(cid:108)(cid:67)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)
for
the Environmental Management
System and complete the OHSAS18001
certification process;
(cid:115)(cid:0) (cid:37)(cid:77)(cid:80)(cid:72)(cid:65)(cid:83)(cid:73)(cid:83)(cid:0) (cid:79)(cid:78)(cid:0) (cid:80)(cid:82)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0) (cid:65)(cid:78)(cid:68)(cid:0) (cid:67)(cid:79)(cid:83)(cid:84)(cid:0)
optimisation, with significant focus on
improving recoveries and efficiencies;
(cid:115)(cid:0) (cid:52)(cid:79)(cid:84)(cid:65)(cid:76)(cid:0)(cid:84)(cid:79)(cid:78)(cid:83)(cid:0)(cid:77)(cid:73)(cid:78)(cid:69)(cid:68)(cid:0)(cid:84)(cid:79)(cid:0)(cid:17)(cid:18)(cid:14)(cid:22)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:83)(cid:84)(cid:69)(cid:65)(cid:68)(cid:89)(cid:0)
nameplate production of 6.2 million tons
of ore treated; and
(cid:115)(cid:0) (cid:36)(cid:69)(cid:76)(cid:73)(cid:86)(cid:69)(cid:82)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:67)(cid:79)(cid:78)(cid:83)(cid:84)(cid:82)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0) (cid:84)(cid:65)(cid:82)(cid:71)(cid:69)(cid:84)(cid:83)(cid:0) (cid:79)(cid:70)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0)
first two raises of the Las Gordas and Las
Aguilas tailings dam.
2009
2008
4,894
5,044
2.4
1.2
0.8
1.0
4,547
1.5
0.7
0.5
105
24
114
219
6,822
369
926
20.5
5,762
939
2.7
1.2
0.4
6.1
–
–
–
–
–
–
–
–
–
–
–
–
116.8
348.4
40
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
REVIEW OF OPERATIONS: SOUTH AMERICA REGION
continued
Lost Day Injury Frequency Rate
per million man hours worked
Cerro Corona Gold Mine
Open pit mining
Waste mined
Ore mined
Combined grade
Au grade
Cu grade
Strip ratio
Processing
Tons milled
Combined yield
Au yield
Cu yield
Gold produced
Copper produced
Copper produced expressed in
equivalent gold ounces
Total produced
Total cash cost
Notional cash expenditure
Net attributable earnings
Capital expenditure
’000t
’000t
g/t
g/t
per cent
W:O
’000t
g/t
g/t
per cent
’000oz
’000t
’000eqoz
’000eqoz
eqkg
US$/eqoz
US$/eqoz
US$m
US$m
2.0
1.0
6
9
.
0
5
2
0
.
0
Cerro Corona
2008
2009
Serious Injury Frequency Rate
per million man hours worked
2.0
1.0
8
6
.
1
1
4
.
1
0
Cerro Corona
2008
2009
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REVIEW OF OPERATIONS – EXPLORATION AND BUSINESS DEVELOPMENT
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
41
41
F2009
Achievements
(cid:115)(cid:0) (cid:0)(cid:46)(cid:69)(cid:65)(cid:82)(cid:0)(cid:77)(cid:73)(cid:78)(cid:69)(cid:0)
exploration success
at St Ives, Agnew
and Damang.
(cid:115)(cid:0) (cid:52)(cid:72)(cid:82)(cid:69)(cid:69)(cid:0)(cid:71)(cid:82)(cid:69)(cid:69)(cid:78)(cid:108)(cid:0)(cid:69)(cid:76)(cid:68)(cid:83)(cid:0)
projects at the
advanced drilling
stage.
Tommy McKeith
Executive Vice President: Head of Exploration and Business Development
Gold Fields’ growth strategy is focused on creating our own high quality gold opportunities through
an aggressive exploration programme. By leveraging our technical excellence in area selection
and programme execution, the Exploration Group aims to improve the likelihood of success and
signifi cantly reduce project development timelines.
Our strategy is based on a measured and thoughtful approach when adding new projects to
the portfolio. The aim is to strike the appropriate balance between size, quality and the various
risks associated with the opportunity. These tradeoffs will continually be re-assessed as a project
advances through the development pipeline to ensure its economic potential is commensurate with
its technical, commercial, geopolitical, social and environmental risks.
Near mine exploration around our operations in Australia, Ghana and Peru is a priority for our
Group. During the year, we advanced the Athena and Hamlet discoveries at St Ives to the feasibility
stage and advanced exploration opportunities at all our sites. Near mine exploration is focused
on unlocking the option value of our international gold operations and providing a robust platform
for regional growth. This is refl ected in positive growth trends in annual resource and reserve
declarations.
Most of our greenfi elds exploration is organised to provide the growth pipeline for our international
regions: South America, West Africa and Australasia. During the year, Gold Fields advanced this
portfolio to the extent where we now have advanced drilling projects in Peru and Mali. Initial drilling
projects in Australia and Chile are showing signifi cant potential and we hope to progress these
during the next fi nancial year.
Positioning Gold Fields for the longer term, we are establishing exploration activities in a few key
prospective geological belts in new regions, away from our existing operations. During the year, the
Talas Project in Kyrgyzstan progressed to the advanced drilling stage and continues to demonstrate
promise. New exploration search spaces can also arise through the application of new geological
concepts and technologies, which we have employed at our initial drilling projects in Canada
located within a supposedly mature exploration terrain in British Columbia.
Our objectives are carefully considered in the current environment, and include:
(cid:115)(cid:0) (cid:36)(cid:69)(cid:86)(cid:69)(cid:76)(cid:79)(cid:80)(cid:73)(cid:78)(cid:71)(cid:0)(cid:65)(cid:0)(cid:82)(cid:79)(cid:66)(cid:85)(cid:83)(cid:84)(cid:0)(cid:80)(cid:73)(cid:80)(cid:69)(cid:76)(cid:73)(cid:78)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:81)(cid:85)(cid:65)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0)(cid:71)(cid:82)(cid:69)(cid:69)(cid:78)(cid:108)(cid:0)(cid:69)(cid:76)(cid:68)(cid:83)(cid:0)(cid:79)(cid:80)(cid:80)(cid:79)(cid:82)(cid:84)(cid:85)(cid:78)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83)(cid:0)(cid:67)(cid:65)(cid:80)(cid:65)(cid:66)(cid:76)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:71)(cid:69)(cid:78)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0)(cid:65)(cid:0)(cid:39)(cid:79)(cid:76)(cid:68)(cid:0)
Fields development project every two to three years; the goal is to establish a steady state
greenfi elds pipeline by 2014;
(cid:115)(cid:0) (cid:37)(cid:83)(cid:84)(cid:65)(cid:66)(cid:76)(cid:73)(cid:83)(cid:72)(cid:73)(cid:78)(cid:71)(cid:0)(cid:39)(cid:79)(cid:76)(cid:68)(cid:0)(cid:38)(cid:73)(cid:69)(cid:76)(cid:68)(cid:83)(cid:7)(cid:0)(cid:80)(cid:82)(cid:69)(cid:83)(cid:69)(cid:78)(cid:67)(cid:69)(cid:0)(cid:73)(cid:78)(cid:0)(cid:83)(cid:69)(cid:76)(cid:69)(cid:67)(cid:84)(cid:0)(cid:82)(cid:69)(cid:71)(cid:73)(cid:79)(cid:78)(cid:83)(cid:0)(cid:65)(cid:82)(cid:79)(cid:85)(cid:78)(cid:68)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:87)(cid:79)(cid:82)(cid:76)(cid:68)(cid:0)(cid:87)(cid:73)(cid:84)(cid:72)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:65)(cid:73)(cid:77)(cid:0)(cid:79)(cid:70)(cid:0)(cid:69)(cid:83)(cid:84)(cid:65)(cid:66)(cid:76)(cid:73)(cid:83)(cid:72)(cid:73)(cid:78)(cid:71)(cid:0)
a dominant position in areas containing the most promising emerging and prospective gold
belts; and
(cid:115)(cid:0) (cid:48)(cid:82)(cid:79)(cid:86)(cid:73)(cid:68)(cid:73)(cid:78)(cid:71)(cid:0) (cid:39)(cid:79)(cid:76)(cid:68)(cid:0) (cid:38)(cid:73)(cid:69)(cid:76)(cid:68)(cid:83)(cid:7)(cid:0) (cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:78)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:65)(cid:76)(cid:0) (cid:79)(cid:80)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0) (cid:82)(cid:69)(cid:71)(cid:73)(cid:79)(cid:78)(cid:83)(cid:0) (cid:87)(cid:73)(cid:84)(cid:72)(cid:0) (cid:65)(cid:0) (cid:71)(cid:82)(cid:79)(cid:87)(cid:84)(cid:72)(cid:0) (cid:80)(cid:73)(cid:80)(cid:69)(cid:76)(cid:73)(cid:78)(cid:69)(cid:0) (cid:84)(cid:79)(cid:0) (cid:65)(cid:67)(cid:72)(cid:73)(cid:69)(cid:86)(cid:69)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0)
targeted production goal of one million ounces a year from each region through exploration
success and value accretive business development.
To achieve these goals, Gold Fields has assembled a team of experienced and motivated
professionals. Gold Fields has stated that if we cannot mine safely, we will not mine. This principle
applies to the exploration team: if we cannot explore safely, we will not explore. We continually
strive to provide a safe and healthy working environment at all our projects with the ongoing aim
of achieving zero safety related incidents and accidents. From an environmental perspective, the
Exploration Group utilises industry best practices that minimise our footprint wherever possible.
To demonstrate this commitment to safety and the environment, the Gold Fields Exploration Group
has achieved and will strive to maintain ISO14001 and OHSAS18001 certifi cation at its offi ces and
projects around the world. As a team, we know that the Exploration Group is the fi rst ambassador
of Gold Fields in a community. Consequently we always strive to leave a positive and lasting legacy.
Our stakeholders can rely on Gold Fields to make positive contributions and be constructive
members of the communities in which we work.
Tommy McKeith
42
42
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
REVIEW OF OPERATIONS – EXPLORATION AND BUSINESS DEVELOPMENT
continued
INTRODUCTION
Gold Fields operates a disciplined exploration
where successful, advancing these projects
in a timely manner.
project management system with clear decision
gates based on the discovery potential and
economics of a target. The different stages
of an exploration target’s development are as
follows:
(cid:115)(cid:0) (cid:52)(cid:65)(cid:82)(cid:71)(cid:69)(cid:84)(cid:0)(cid:68)(cid:69)(cid:108)(cid:78)(cid:73)(cid:84)(cid:73)(cid:79)(cid:78)(cid:27)
(cid:115)(cid:0) (cid:41)(cid:78)(cid:73)(cid:84)(cid:73)(cid:65)(cid:76)(cid:0)(cid:68)(cid:82)(cid:73)(cid:76)(cid:76)(cid:73)(cid:78)(cid:71)(cid:27)
(cid:115)(cid:0) (cid:33)(cid:68)(cid:86)(cid:65)(cid:78)(cid:67)(cid:69)(cid:68)(cid:0)(cid:68)(cid:82)(cid:73)(cid:76)(cid:76)(cid:73)(cid:78)(cid:71)(cid:27)
(cid:115)(cid:0) (cid:50)(cid:69)(cid:83)(cid:79)(cid:85)(cid:82)(cid:67)(cid:69)(cid:0)(cid:68)(cid:69)(cid:86)(cid:69)(cid:76)(cid:79)(cid:80)(cid:77)(cid:69)(cid:78)(cid:84)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0) (cid:34)(cid:65)(cid:78)(cid:75)(cid:65)(cid:66)(cid:76)(cid:69)(cid:0)(cid:70)(cid:69)(cid:65)(cid:83)(cid:73)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0)(cid:83)(cid:84)(cid:85)(cid:68)(cid:89)(cid:14)(cid:0)
is generated by
Greenfields exploration
reviewing and ranking the most prospective
terrains across the world. Highly ranked belts
are selected for exploration after a further
screen of country risk and strategic fit to Gold
Fields. Each exploration region continuously
monitors and reviews a variety of exploration
and business development opportunities,
targeting projects at all stages of development.
To be successful, targets need to be drill
tested and advanced to the next exploration
phase. There is a strong focus in Gold Fields’
Exploration Group on turning over targets as
When evaluating new opportunities or assessing
conceptual targets, we use various metrics,
which include reserve and production potential,
margin, payback period, initial capital costs,
development timeline, net asset value, earnings
effectively as possible by drill testing and,
and cashflow.
Development Stage
Africa
Australasia
America
South
Advanced Drilling
Initial Drilling
Target Definition
*Includes Arctic Platinum Project.
1
4
20
–
13
15
1
1
14
Rest of
the world
2*
3
9
There has been considerable progress over the
last year on Gold Fields’ exploration portfolio.
For the first time in the Group’s history, we have
three advanced drilling exploration projects
underway at the same time:
(cid:115)(cid:0) (cid:52)(cid:72)(cid:69)(cid:0) (cid:52)(cid:65)(cid:76)(cid:65)(cid:83)(cid:0) (cid:74)(cid:79)(cid:73)(cid:78)(cid:84)(cid:0) (cid:86)(cid:69)(cid:78)(cid:84)(cid:85)(cid:82)(cid:69)(cid:0) (cid:87)(cid:73)(cid:84)(cid:72)(cid:0) (cid:47)(cid:82)(cid:83)(cid:85)(cid:0) (cid:45)(cid:73)(cid:78)(cid:73)(cid:78)(cid:71)(cid:0)
in Kyrgyzstan, where we are advancing a
resource delineation drilling programme at
the Taldybulak copper-gold target as well as
testing other promising targets within the belt;
(cid:115)(cid:0) (cid:52)(cid:72)(cid:69)(cid:0)(cid:35)(cid:72)(cid:85)(cid:67)(cid:65)(cid:80)(cid:65)(cid:67)(cid:65)(cid:0)(cid:74)(cid:79)(cid:73)(cid:78)(cid:84)(cid:0)(cid:86)(cid:69)(cid:78)(cid:84)(cid:85)(cid:82)(cid:69)(cid:0)(cid:66)(cid:69)(cid:84)(cid:87)(cid:69)(cid:69)(cid:78)(cid:0)(cid:45)(cid:73)(cid:78)(cid:69)(cid:82)(cid:65)(cid:0)
Gold Fields Peru S.A and with Buenaventura
in Peru, where recent drilling intersected
significant gold with copper grades and this
resulted in approval to carry out an aggressive
resource delineation programme on this
discovery; and
(cid:115)(cid:0) (cid:33)(cid:84)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:51)(cid:65)(cid:78)(cid:75)(cid:65)(cid:82)(cid:65)(cid:78)(cid:73)(cid:0) (cid:74)(cid:79)(cid:73)(cid:78)(cid:84)(cid:0) (cid:86)(cid:69)(cid:78)(cid:84)(cid:85)(cid:82)(cid:69)(cid:0) (cid:87)(cid:73)(cid:84)(cid:72)(cid:0) (cid:39)(cid:76)(cid:69)(cid:78)(cid:67)(cid:65)(cid:82)(cid:0)
in Mali, we are aggressively exploring several
significant mineralised trends. Subsequent to
year-end, Gold Fields made a successful offer
to acquire the entire issued share capital of
Glencar, which includes Glencar’s advanced
Komana prospect.
GREENFIELDS EXPLORATION
The table above provides a breakdown of the
number of targets in Gold Fields for each of
the first three stages of project development
as of 30 June 2009. The table does not include
near mine exploration projects at Gold Fields
operations in South Africa, Ghana, Australia
and Peru.
During F2009 Gold Fields spent a total of
US$90 million on exploration, which included
US$48 million on greenfields exploration
projects and US$42 million on brownfields
exploration projects, of which US$34 million
was capitalised. The exploration budget for
F2010 is substantially higher at US$80 million
for greenfields and US$40 million for near mine,
reflecting the quality of our portfolio.
At the East Lachlan joint ventures in New
South Wales, Australia, we have signed an
additional agreement with Clancy Exploration
Limited on the Myall property and are now
earning into an 80 per cent interest on four
separate joint venture projects. During the
year, initial drilling of bedrock geochemical and
geophysical targets confirmed the presence of
large porphyry systems on two of the properties
analogous to the nearby Cadia and Ridgeway
mines. Drilling on several targets returned
significant intercepts of strong alteration and
encouraging mineralisation.
At the SBX joint venture project in Chile, we
are earning into a 90 per cent interest in three
claims held by SBX Asesorias e Inversiones,
and 100 per cent of a claim held by Aguas
Heladas. During
the year we completed
geophysical surveys, bulldozer trenching and a
reverse circulation (RC) drill programme on two
of the properties. Positive results were returned
from the Pircas prospect and a follow-up drilling
programme is planned for the next field season.
We have signed a letter of intent with SBX
Asesorias e Inversiones to earn up to a
70 per cent interest in the Ojo de Maricunga
project in Chile. A definitive joint venture
agreement should be executed soon and
planning for the next field season is currently
underway.
We entered into definitive agreements with
Mindoro Resources Limited in the Batangas
region in the Philippines which allows us
to earn up to a 75 per cent interest in a large
area with known copper/gold porphyries and
epithermal gold prospects. A community
relations programme and field work commenced
at the end of F2009 with the objective of defining
targets for initial drilling in F2010.
A definitive agreement was signed with
Cascadero Copper Corporation, that allows
Gold Fields to earn up to a 75 per cent interest
the Toodoggone copper/gold project
in
in British Columbia, Canada. An airborne
magnetics survey was completed during the
spring and field work commenced in June 2009,
which includes ground follow-up geophysics
and geologic mapping. Initial drilling started in
August 2009.
A definitive agreement was signed with the
Woodjam Partners (Fjordland Exploration
Inc. and Cariboo Rose Resources Limited)
to earn into a 70 per cent interest in a 40,500
hectare property covering several known
porphyry
in south-central British
Columbia, Canada. Field work consisting of
core
re-logging, geological mapping and
soil sampling has commenced. Geophysical
surveys and initial drilling started in August
2009.
targets
ADVANCED PROJECTS
In late 2008 we announced a joint venture
agreement with Orsu Metals Corporation
for the further exploration and development
of the Talas licence area in northwestern
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
43
43
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in Orsu’s Talas
Kyrgyzstan. The agreement gives Gold Fields
the right to earn as much as a 70 per cent
interest
licence area. We
assumed operatorship of the Talas Project
during F2009 and continued an aggressive
drilling programme through the winter months
to delineate the resource potential at the
Taldybulak copper/gold porphyry target as well
as testing other promising targets within the
belt. Results continue to be encouraging and
work is progressing to complete an in-house
conceptual study by Q4 F2010
At the Arctic Platinum Project in Finland,
positive results from preliminary metallurgical
tests, using a hydrometallurgical process, have
justified additional engineering work to fine-
tune the cost estimates for using this process
on a commercial scale. The hydrometallurgical
process uses pressure oxidation to take the
base metals and precious metals in concentrate
into solution. The metals are then recovered
from the solution. During F2010 further work will
be completed to assess the economic viability
of the process and a decision will be made on
pilot plant testing by Q4 F2010.
At the Agnew Mine in Western Australia,
underground extensional drilling and resource
conversion at Waroonga was the main focus
for the year, specifically at Kim South and 450
South. The objective at Waroonga is to drill
test and convert an inferred two million ounce
mineral resource position and establish a five-
year reserve base for Agnew. Surface targets
within 10 kilometres of the gold plant were
tested including the Cinderella and Cinderella
NE blocks, where the style of mineralisation is
gold associated with flat veins.
located
Our wholly owned exploration subsidiary, Minera
Gold Fields Peru S.A., has exercised its back-
in right with Compañia de Minas Buenaventura
S.A.A. to earn a 51 per cent interest in the
Chucapaca project
in southern
Peru. The option was triggered on the back
of the Canahuire discovery on the Chucapaca
tenements where drilling intersected significant
gold and copper mineralisation associated with
the margins of a diatreme breccia. Operatorship
of the project was transferred to Minera Gold
Fields Peru S.A. during F2009 and an aggressive
drill campaign commenced to delineate the
extent of mineralisation of the Canahuire deposit
as well as to test several other prospective
targets in the area. Results have confirmed and
expanded the potential of the deposit and work
is progressing to complete a scoping study in
Q4 F2010.
At the 51 per cent owned Sankarani Joint
Venture with Glencar Mining Plc (Glencar) in
southern Mali, positive initial drilling results over
the year defined extensive mineralised trends
with economic gold grades over significant drill
widths at the Finguana, Bokoro and Sanioumale
sheer-hosted orogenic gold targets. Additional
field work and follow-up drilling will commence
in F2010 following the rainy season with the aim
of progressing this project to the scoping study
stage.
We announced in July 2009, that we had
reached agreement with Glencar on the terms of
a recommended cash offer for its entire issued
share capital. The offer was accepted allowing
us to consolidate 100 per cent ownership of the
Sankarani Properties and Glencar’s advanced
Komana Project where Glencar has delineated
a 1.25 million ounce resource in two separate
ore bodies. Gold Fields plans to complete an
extensive drill-out of the Komana Project to
include in a scoping study during F2011.
SINO GOLD MINING LIMITED
Towards the end of the financial year, we
announced that agreement was reached on
the sale of our 19.9 per cent stake in Sino Gold
Mining Limited (Sino Gold) to Eldorado Gold
Corporation (Eldorado) for a total consideration
of about US$282 million, paid in Eldorado
shares. Gold Fields received a share exchange
ratio of 48 Eldorado shares for every 100 Sino
Gold shares, which resulted in Gold Fields
holding 27,824,654 Eldorado shares; about
seven per cent of the outstanding shares of
Eldorado on a fully diluted basis. Subsequent
to year end, Gold Fields disposed of its holding
in Eldorado Gold for a total consideration of
C$323 million (US$293 million).
NEAR MINE EXPLORATION
At the St Ives Mine in Western Australia,
the main focus was resource conversion
and extensional drilling at the Athena and
Hamlet deposits, located adjacent to the Argo
underground mine. Athena is a new discovery
and, subject to feasibility study, is the next
underground mine at St Ives. Step out drilling
has confirmed continuity of the main lode to
600 metres below surface, and infill resource
definition drilling demonstrated consistent
widths, grades and geometry. The drilling for
the Athena conceptual study has now been
completed and a full feasibility study will be
completed by mid F2010. At Hamlet, which
is showing both open pit and underground
mining potential, drilling was focused on
near surface resource definition and also at
extending the lateral and depth extents of the
known mineralisation. The strike length of the
resource is about 500 metres while deeper
drilling between 200 and 400 metres below
surface is returning positive results. Drilling will
continue testing along strike of these deeper
results in F2010.
Drilling at the Leviathan complex will be aimed
at testing extensions to the open pit resources
in F2010.
A major programme of drilling to clearly define
the gold potential of the Mine Central Corridor
(MCC) shear zone was also started during
the year. This programme will systematically
explore and model the full potential of the
MCC between five on-lease, major gold
deposits along a 20-kilometre length of the
shear zone. Historical drilling outside of the
known and mined deposits is shallow and
only tested within 50 to 100 metres below
surface.
At the Damang Mine in Ghana, the emphasis
during F2009 has been on extensional drilling
to the south of the main Damang mine and
between some of the smaller surface mines.
Positive results are being returned from the
Nyame and Tamang prospects and suggest
that the Damang mineralisation may extend for
at least two kilometres south of the Damang pit
cutback. To the south of Tamang, extensional
drilling between the Amoanda and Tomento
East surface mines, and between Amoanda
and the Rex surface mine further to the south,
is also starting to show promise. These initial
drilling results are supported by an extensive,
lease-wide gravity and IP geophysical survey
which is scheduled for completion by Q3 of
F2010.
At Cerro Corona in Peru, district exploration
continues in the 50:50 joint venture between
Gold Fields La Cima S.A. and Compañia
de Minas Buenaventura. At the Titan-Arabe
copper/gold target, negotiations are continuing
with the local communities to gain drilling
access. Should we obtain approval
from
the communities, the drilling programme will
commence in F2010.
44
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
MINERAL RESOURCES AND RESERVES
SALIENT HIGHLIGHTS
(cid:115)(cid:0)(cid:33)(cid:84)(cid:84)(cid:82)(cid:73)(cid:66)(cid:85)(cid:84)(cid:65)(cid:66)(cid:76)(cid:69)(cid:0) (cid:45)(cid:73)(cid:78)(cid:69)(cid:82)(cid:65)(cid:76)(cid:0) (cid:50)(cid:69)(cid:83)(cid:79)(cid:85)(cid:82)(cid:67)(cid:69)(cid:83)(cid:12)(cid:0) (cid:73)(cid:78)(cid:67)(cid:76)(cid:85)(cid:68)(cid:73)(cid:78)(cid:71)(cid:0) (cid:18)(cid:48)(cid:39)(cid:37)(cid:0) (cid:65)(cid:78)(cid:68)(cid:0) (cid:35)(cid:85)(cid:0) (cid:67)(cid:79)(cid:78)(cid:86)(cid:69)(cid:82)(cid:84)(cid:69)(cid:68)(cid:0) (cid:84)(cid:79)(cid:0) (cid:33)(cid:85)(cid:13)(cid:37)(cid:81)(cid:85)(cid:73)(cid:86)(cid:65)(cid:76)(cid:69)(cid:78)(cid:84)(cid:0) (cid:79)(cid:85)(cid:78)(cid:67)(cid:69)(cid:83)(cid:12)(cid:0) (cid:65)(cid:84)(cid:0)
271.2 million ounces.
(cid:115)(cid:0)(cid:33)(cid:84)(cid:84)(cid:82)(cid:73)(cid:66)(cid:85)(cid:84)(cid:65)(cid:66)(cid:76)(cid:69)(cid:0) (cid:85)(cid:82)(cid:65)(cid:78)(cid:73)(cid:85)(cid:77)(cid:0) (cid:45)(cid:73)(cid:78)(cid:69)(cid:82)(cid:65)(cid:76)(cid:0) (cid:50)(cid:69)(cid:83)(cid:79)(cid:85)(cid:82)(cid:67)(cid:69)(cid:83)(cid:0) (cid:87)(cid:73)(cid:84)(cid:72)(cid:73)(cid:78)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:51)(cid:79)(cid:85)(cid:84)(cid:72)(cid:0) (cid:33)(cid:70)(cid:82)(cid:73)(cid:67)(cid:65)(cid:0) (cid:50)(cid:69)(cid:71)(cid:73)(cid:79)(cid:78)(cid:0) (cid:110)(cid:0) (cid:55)(cid:69)(cid:83)(cid:84)(cid:0) (cid:55)(cid:73)(cid:84)(cid:83)(cid:0) (cid:47)(cid:80)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:10)(cid:0)
[underground and Tailings Storage Facilities (TSF’s)] at 77.1 million pounds.
(cid:115)(cid:0)(cid:33)(cid:84)(cid:84)(cid:82)(cid:73)(cid:66)(cid:85)(cid:84)(cid:65)(cid:66)(cid:76)(cid:69)(cid:0)(cid:45)(cid:73)(cid:78)(cid:69)(cid:82)(cid:65)(cid:76)(cid:0)(cid:50)(cid:69)(cid:83)(cid:69)(cid:82)(cid:86)(cid:69)(cid:83)(cid:12)(cid:0)(cid:73)(cid:78)(cid:67)(cid:76)(cid:85)(cid:68)(cid:73)(cid:78)(cid:71)(cid:0)(cid:35)(cid:85)(cid:0)(cid:67)(cid:79)(cid:78)(cid:86)(cid:69)(cid:82)(cid:84)(cid:69)(cid:68)(cid:0)(cid:84)(cid:79)(cid:0)(cid:33)(cid:85)(cid:13)(cid:37)(cid:81)(cid:85)(cid:73)(cid:86)(cid:65)(cid:76)(cid:69)(cid:78)(cid:84)(cid:0)(cid:79)(cid:85)(cid:78)(cid:67)(cid:69)(cid:83)(cid:12)(cid:0)(cid:65)(cid:84)(cid:0)(cid:24)(cid:17)(cid:14)(cid:17)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:85)(cid:78)(cid:67)(cid:69)(cid:83)(cid:14)
(cid:115)(cid:0)(cid:33)(cid:0) (cid:80)(cid:82)(cid:69)(cid:13)(cid:70)(cid:69)(cid:65)(cid:83)(cid:73)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0) (cid:83)(cid:84)(cid:85)(cid:68)(cid:89)(cid:0) (cid:70)(cid:79)(cid:82)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:71)(cid:79)(cid:76)(cid:68)(cid:0) (cid:65)(cid:78)(cid:68)(cid:0) (cid:85)(cid:82)(cid:65)(cid:78)(cid:73)(cid:85)(cid:77)(cid:0) (cid:45)(cid:73)(cid:78)(cid:69)(cid:82)(cid:65)(cid:76)(cid:0) (cid:50)(cid:69)(cid:83)(cid:79)(cid:85)(cid:82)(cid:67)(cid:69)(cid:0) (cid:80)(cid:79)(cid:84)(cid:69)(cid:78)(cid:84)(cid:73)(cid:65)(cid:76)(cid:0) (cid:87)(cid:73)(cid:84)(cid:72)(cid:73)(cid:78)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:52)(cid:65)(cid:73)(cid:76)(cid:73)(cid:78)(cid:71)(cid:83)(cid:0) (cid:51)(cid:84)(cid:79)(cid:82)(cid:65)(cid:71)(cid:69)(cid:0)
Facilities of the West Wits Operations has been completed and a feasibility study has commenced.
Modelling of the West Wits underground uranium resource is ongoing.
(cid:115)(cid:0)(cid:50)(cid:69)(cid:83)(cid:79)(cid:85)(cid:82)(cid:67)(cid:69)(cid:0)(cid:77)(cid:79)(cid:68)(cid:69)(cid:76)(cid:76)(cid:73)(cid:78)(cid:71)(cid:0)(cid:70)(cid:79)(cid:82)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:53)(cid:80)(cid:80)(cid:69)(cid:82)(cid:0)(cid:37)(cid:76)(cid:83)(cid:66)(cid:85)(cid:82)(cid:71)(cid:0)(cid:82)(cid:69)(cid:69)(cid:70)(cid:83)(cid:0)(cid:65)(cid:84)(cid:0)(cid:51)(cid:79)(cid:85)(cid:84)(cid:72)(cid:0)(cid:36)(cid:69)(cid:69)(cid:80)(cid:0)(cid:72)(cid:65)(cid:83)(cid:0)(cid:66)(cid:69)(cid:69)(cid:78)(cid:0)(cid:67)(cid:79)(cid:77)(cid:80)(cid:76)(cid:69)(cid:84)(cid:69)(cid:68)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:24)(cid:23)(cid:0)(cid:84)(cid:79)(cid:0)(cid:17)(cid:17)(cid:16)(cid:0)(cid:76)(cid:69)(cid:86)(cid:69)(cid:76)(cid:12)(cid:0)
inclusive of Uncle Harry’s ground contiguous to South Deep.
(cid:115)(cid:0)(cid:48)(cid:82)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0) (cid:65)(cid:84)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:35)(cid:69)(cid:82)(cid:82)(cid:79)(cid:0) (cid:35)(cid:79)(cid:82)(cid:79)(cid:78)(cid:65)(cid:0) (cid:45)(cid:73)(cid:78)(cid:69)(cid:0) (cid:65)(cid:78)(cid:68)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:35)(cid:41)(cid:44)(cid:0) (cid:80)(cid:76)(cid:65)(cid:78)(cid:84)(cid:0) (cid:69)(cid:88)(cid:80)(cid:65)(cid:78)(cid:83)(cid:73)(cid:79)(cid:78)(cid:0) (cid:65)(cid:84)(cid:0) (cid:52)(cid:65)(cid:82)(cid:75)(cid:87)(cid:65)(cid:0) (cid:67)(cid:65)(cid:77)(cid:69)(cid:0) (cid:79)(cid:78)(cid:0) (cid:83)(cid:84)(cid:82)(cid:69)(cid:65)(cid:77)(cid:0) (cid:68)(cid:85)(cid:82)(cid:73)(cid:78)(cid:71)(cid:0)
F2009.
(cid:115)(cid:0)(cid:52)(cid:72)(cid:69)(cid:0)(cid:38)(cid:18)(cid:16)(cid:16)(cid:25)(cid:0)(cid:69)(cid:88)(cid:80)(cid:76)(cid:79)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:67)(cid:65)(cid:77)(cid:80)(cid:65)(cid:73)(cid:71)(cid:78)(cid:0)(cid:65)(cid:84)(cid:0)(cid:51)(cid:84)(cid:0)(cid:41)(cid:86)(cid:69)(cid:83)(cid:0)(cid:83)(cid:85)(cid:67)(cid:67)(cid:69)(cid:83)(cid:83)(cid:70)(cid:85)(cid:76)(cid:76)(cid:89)(cid:0)(cid:68)(cid:69)(cid:76)(cid:73)(cid:78)(cid:69)(cid:65)(cid:84)(cid:69)(cid:68)(cid:0)(cid:78)(cid:69)(cid:87)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:65)(cid:68)(cid:68)(cid:73)(cid:84)(cid:73)(cid:79)(cid:78)(cid:65)(cid:76)(cid:0)(cid:45)(cid:73)(cid:78)(cid:69)(cid:82)(cid:65)(cid:76)(cid:0)(cid:50)(cid:69)(cid:83)(cid:79)(cid:85)(cid:82)(cid:67)(cid:69)(cid:83)(cid:0)
and Mineral Reserves, primarily from the Athena complex.
(cid:115)(cid:0)(cid:51)(cid:73)(cid:71)(cid:78)(cid:73)(cid:108)(cid:67)(cid:65)(cid:78)(cid:84)(cid:0)(cid:73)(cid:78)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:69)(cid:0)(cid:73)(cid:78)(cid:0)(cid:45)(cid:73)(cid:78)(cid:69)(cid:82)(cid:65)(cid:76)(cid:0)(cid:50)(cid:69)(cid:83)(cid:69)(cid:82)(cid:86)(cid:69)(cid:83)(cid:0)(cid:87)(cid:73)(cid:84)(cid:72)(cid:73)(cid:78)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:36)(cid:65)(cid:77)(cid:65)(cid:78)(cid:71)(cid:0)(cid:48)(cid:73)(cid:84)(cid:0)(cid:67)(cid:79)(cid:77)(cid:80)(cid:76)(cid:69)(cid:88)(cid:0)(cid:65)(cid:82)(cid:69)(cid:65)(cid:14)
(cid:115)(cid:0)(cid:40)(cid:73)(cid:71)(cid:72)(cid:0)(cid:48)(cid:82)(cid:69)(cid:83)(cid:83)(cid:85)(cid:82)(cid:69)(cid:0)(cid:39)(cid:82)(cid:73)(cid:78)(cid:68)(cid:0)(cid:50)(cid:79)(cid:76)(cid:76)(cid:0)(cid:8)(cid:40)(cid:48)(cid:39)(cid:50)(cid:9)(cid:0)(cid:84)(cid:69)(cid:67)(cid:72)(cid:78)(cid:79)(cid:76)(cid:79)(cid:71)(cid:89)(cid:0)(cid:80)(cid:73)(cid:76)(cid:79)(cid:84)(cid:0)(cid:83)(cid:84)(cid:85)(cid:68)(cid:89)(cid:0)(cid:70)(cid:79)(cid:82)(cid:0)(cid:73)(cid:77)(cid:80)(cid:82)(cid:79)(cid:86)(cid:73)(cid:78)(cid:71)(cid:0)(cid:40)(cid:69)(cid:65)(cid:80)(cid:0)(cid:44)(cid:69)(cid:65)(cid:67)(cid:72)(cid:0)(cid:82)(cid:69)(cid:67)(cid:79)(cid:86)(cid:69)(cid:82)(cid:89)(cid:0)(cid:65)(cid:84)(cid:0)(cid:52)(cid:65)(cid:82)(cid:75)(cid:87)(cid:65)(cid:0)(cid:72)(cid:65)(cid:83)(cid:0)
commenced.
* West Wits Operations include Driefontein, Kloof and South Deep Gold Mines
CORPORATE GOVERNANCE
The company has a robust production capability
founded on its portfolio of high-quality, long-
life assets and its ‘gold only’ Mineral Reserve
managed profile currently ranks third in the
industry.
The F2010 Statement outlines the Gold Fields
Mineral Resource (Resources) and Mineral
Reserve (Reserves) at each of its operating
mines and at Arctic Platinum, as at 30 June
2009. The Resource and Reserve information
reported is considered important for disclosure
and it reflects a level of detail required for
completeness, transparency and materiality.
The Group’s Resource and Reserve figures are
estimates and will be affected by fluctuations in
the US dollar currency exchange rates, costs
and operating factors. Resources are reported
inclusive of Reserves and stability pillars.
to corporate
Guided by a commitment
has been
this Statement
governance,
audited by recognised, leading global mining
consultancies, and found to be compliant
with the South African Code for the Reporting
of Resources and Reserves (2007 SAMREC
Code), which is aligned to the updated Section
12 (October 2008) of the Johannesburg Stock
Exchange (JSE Limited) listing requirements
and Industry Guide 7 for reporting on the United
States Securities and Exchange Commission
(SEC). Cognisance is taken of other relevant
international codes, where geographically
applicable, such as the Australian JORC Code
and Canadian NI 43-101. The process followed
in producing the declaration is aligned to the
guiding principles of the Sarbanes-Oxley (SOX)
Act of 2002.
Covering the entire Group’s Mineral Resource
Management (MRM) function, the SOX audit
runs in parallel with the external Resource
and Reserve audits and underpins the internal
control process,
to world class
leading
corporate governance practices.
All comparisons and reconciliations reported are
standardised on a 12 month window defined by
the period between the last published Resource
and Reserve statement as at 30 June 2008 and
the current 30 June 2009 declaration.
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
45
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GROUP REPORT
The June 2008 Statement’s numbers are shown
in brackets for ease of comparison:
(cid:115)(cid:0) (cid:33)(cid:83)(cid:0)(cid:65)(cid:84)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:69)(cid:78)(cid:68)(cid:0)(cid:79)(cid:70)(cid:0)(cid:42)(cid:85)(cid:78)(cid:69)(cid:0)(cid:18)(cid:16)(cid:16)(cid:25)(cid:12)(cid:0)(cid:39)(cid:79)(cid:76)(cid:68)(cid:0)(cid:38)(cid:73)(cid:69)(cid:76)(cid:68)(cid:83)(cid:0)(cid:72)(cid:65)(cid:83)(cid:0)
total attributable precious metal Resources,
including: (i) platinum and copper as gold
equivalents, (ii) Uncle Harry’s Prospecting
Area contiguous to the South Deep Mine and
(iii) West Wits TSF’s gold (excluding uranium),
of 271.2 (250.6) million ounces and total
attributable gold and copper-gold equivalent
Reserves of 81.1 (82.8) million ounces;
(cid:115)(cid:0) (cid:52)(cid:79)(cid:84)(cid:65)(cid:76)(cid:0) (cid:65)(cid:84)(cid:84)(cid:82)(cid:73)(cid:66)(cid:85)(cid:84)(cid:65)(cid:66)(cid:76)(cid:69)(cid:0) (cid:71)(cid:79)(cid:76)(cid:68)(cid:0) (cid:50)(cid:69)(cid:83)(cid:79)(cid:85)(cid:82)(cid:67)(cid:69)(cid:83)(cid:0) (cid:8)(cid:69)(cid:88)(cid:67)(cid:76)(cid:85)(cid:68)(cid:73)(cid:78)(cid:71)(cid:0)
platinum and copper equivalents) are
255.4 (234.5) million ounces and Reserves
are 78.9 (80.5) million ounces, net of 4.1
and 3.8 million ounces depletion from the
Resource and Reserve respectively. Total
attributable TSF and underground uranium
Resources amount to 77.1 million pounds
(excludes Beatrix);
(cid:115)(cid:0) (cid:52)(cid:72)(cid:69)(cid:0) (cid:51)(cid:79)(cid:85)(cid:84)(cid:72)(cid:0) (cid:33)(cid:70)(cid:82)(cid:73)(cid:67)(cid:65)(cid:0) (cid:50)(cid:69)(cid:71)(cid:73)(cid:79)(cid:78)(cid:0) (cid:72)(cid:65)(cid:83)(cid:0) (cid:65)(cid:0) (cid:68)(cid:69)(cid:67)(cid:76)(cid:65)(cid:82)(cid:69)(cid:68)(cid:0)
attributable Resource of 228.3 (209.6) million
ounces, up nine per cent primarily due
Attributable Mineral Resources and Mineral Reserves per operation:
Attributable Resources*
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*Excluding TSF uranium Resources as well as the underground Uranium Resources.
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to the increase in the metal price and the
inclusion of additional TSF gold ounces. The
South African Region has a Reserve of 64.7
(66.6) million ounces, down three per cent,
net of 2.4 and 2.1 million ounces depletion
from the Resource and Reserve respectively.
Aside from the restated Upper Elsburg
reef numbers above infrastructure (87-110
level), South Deep figures remain as per the
acquisition model;
and
(cid:115)(cid:0) (cid:38)(cid:79)(cid:76)(cid:76)(cid:79)(cid:87)(cid:73)(cid:78)(cid:71)(cid:0) (cid:65)(cid:0) (cid:80)(cid:82)(cid:69)(cid:13)(cid:70)(cid:69)(cid:65)(cid:83)(cid:73)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0) (cid:83)(cid:84)(cid:85)(cid:68)(cid:89)(cid:12)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:52)(cid:51)(cid:38)(cid:0)
Project has a declared attributable surface
uranium Resource of 51.4 (11.4) million
a gold Resource of
pounds
4.3 (1.2) million ounces (included in the
South Africa Region Resources above). The
underground attributable uranium Resource
for the West Wits Operations has been
estimated this year at 25.7 million pounds
(excluding Beatrix);
(cid:115)(cid:0) (cid:52)(cid:72)(cid:69)(cid:0) (cid:55)(cid:69)(cid:83)(cid:84)(cid:0) (cid:33)(cid:70)(cid:82)(cid:73)(cid:67)(cid:65)(cid:0) (cid:50)(cid:69)(cid:71)(cid:73)(cid:79)(cid:78)(cid:0) (cid:72)(cid:65)(cid:83)(cid:0) (cid:65)(cid:0) (cid:68)(cid:69)(cid:67)(cid:76)(cid:65)(cid:82)(cid:69)(cid:68)(cid:0)
attributable gold Resource of 14.6 (13.5) million
ounces and a gold Reserve of 8.9 (9.0) million
ounces, depleted by 0.6 and 0.7 million
ounces respectively;
(cid:115)(cid:0) (cid:52)(cid:72)(cid:69)(cid:0) (cid:33)(cid:85)(cid:83)(cid:84)(cid:82)(cid:65)(cid:76)(cid:65)(cid:83)(cid:73)(cid:65)(cid:0) (cid:50)(cid:69)(cid:71)(cid:73)(cid:79)(cid:78)(cid:0) (cid:72)(cid:65)(cid:83)(cid:0) (cid:65)(cid:0) (cid:68)(cid:69)(cid:67)(cid:76)(cid:65)(cid:82)(cid:69)(cid:68)(cid:0)
attributable gold Resource of 9.1 (7.7) million
ounces and a gold Reserve of 3.0 (2.5) million
ounces, depleted by 0.7 and 0.7 million
ounces respectively;
(cid:115)(cid:0) (cid:52)(cid:72)(cid:69)(cid:0) (cid:51)(cid:79)(cid:85)(cid:84)(cid:72)(cid:0) (cid:33)(cid:77)(cid:69)(cid:82)(cid:73)(cid:67)(cid:65)(cid:0) (cid:50)(cid:69)(cid:71)(cid:73)(cid:79)(cid:78)(cid:0) (cid:72)(cid:65)(cid:83)(cid:0) (cid:65)(cid:0) (cid:68)(cid:69)(cid:67)(cid:76)(cid:65)(cid:82)(cid:69)(cid:68)(cid:0)
attributable gold Resource of 3.4 (3.8) million
ounces and a gold Reserve of 2.3 (2.4) million
ounces. Attributable copper Resources and
Reserves are 1,154 (1,321) million pounds
and 797 (856) million pounds respectively.
The total attributable gold and copper-gold
equivalent Resource and Reserve ounces are
6.6 (7.2) million ounces and 4.5 (4.7) million
ounces, depleted by 0.3 and 0.3 million
ounces respectively;
(cid:115)(cid:0) (cid:46)(cid:79)(cid:82)(cid:84)(cid:72)(cid:0)(cid:33)(cid:77)(cid:69)(cid:82)(cid:73)(cid:67)(cid:65)(cid:78)(cid:0)(cid:48)(cid:65)(cid:76)(cid:76)(cid:65)(cid:68)(cid:73)(cid:85)(cid:77)(cid:0)(cid:44)(cid:73)(cid:77)(cid:73)(cid:84)(cid:69)(cid:68)(cid:0)(cid:8)(cid:46)(cid:33)(cid:48)(cid:9)(cid:0)(cid:68)(cid:73)(cid:68)(cid:0)
not take up their option to acquire 60 per
cent of the Arctic Platinum Growth Project
(APP) and consequently
the Resource
Statement remains the same as historically
reported (12.6 million ounces 2PGE+Au);
(cid:115)(cid:0)(cid:0) (cid:0)(cid:52)(cid:72)(cid:69)(cid:0)(cid:67)(cid:79)(cid:77)(cid:77)(cid:79)(cid:68)(cid:73)(cid:84)(cid:89)(cid:0)(cid:80)(cid:82)(cid:73)(cid:67)(cid:69)(cid:83)(cid:0)(cid:85)(cid:83)(cid:69)(cid:68)(cid:0)(cid:70)(cid:79)(cid:82)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:50)(cid:69)(cid:83)(cid:69)(cid:82)(cid:86)(cid:69)(cid:0)
declaration are in accordance with the SEC
guidelines and approximate the historical two-
to three-year average commodity prices.
46
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
MINERAL RESOURCES AND RESERVES
continued
The following currency rates were used as the basis for estimation in this declaration:
Location
Ghana & Peru
Australia
South Africa1 & 2
Peru
Unit
Au – US$/oz
Au – A$/oz
Au – ZAR/kg
U3O8 – US$/lb
Cu – US$/lb
June 2009
June 2008
Reserves
Resources
Reserves
Resources
800
1,000
230,000
–
2.203
1,000
1,250
285,000
75
2.753
650
750
150,000
–
1.75
800
925
180,000
40
2.10
Notes:
1. South Deep figures between 87 to 110 level generated by Gold Fields.
2. The remainder of South Deep is reported as per the acquisition model (low gold price and corresponding lower costs).
3. Whittle shells run at US$2.20/lb for Resources and US$1.75/lb for Reserves. US$2.75/lb and US$2.20/lb used to calculate equivalent gold for Resources and Reserves
respectively and for cash flow analysis.
The investment in mine based exploration has remained at high levels, with expenditure for the 12 month period July 2008 to June 2009 totalling
US$48.47 million. The on-mine exploration spend centred heavily on Australia (69 per cent) with South Africa (21 per cent) and Ghana (10 per cent)
accounting for the remainder.
Exploration expenditure for 12 month period ending 30 June 2009
Operations/Regions
Metres drilled
R million
A$ million
US$ million
US$ million
US$ million
F2009 expenditure
F2009
F2008
Total expenditure
Driefontein
Kloof
Beatrix
South Deep
West Wits TSF’s*
Total South Africa Region
Tarkwa**
Damang
Total West Africa Region
St Ives
Agnew
Total Australasia Region
Cerro Corona**
Total South America Region
11,754
16,526
8,152
26,665
30,012
93,109
–
26,906
26,906
155,490
134,366
289,856
–
–
5.414
11.208
3.408
52.911
16.247
89.188
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
26.342
16.651
42.993
–
–
–
–
–
–
–
–
–
5.005
5.005
–
–
–
–
–
0.605
1.252
0.381
5.912
1.815
9.965
–
5.005
5.005
20.523
12.972
33.495
–
–
1.403
1.717
0.556
3.388
0.197
7.261
0.960
4.104
5.064
22.970
17.016
39.986
–
–
Grand Total
409,871
89.188
42.993
5.005
48.465
52.311
Notes: Exchange rate as at 30 June 2009 US$ 0.7791: A$1.00 and US$1.00: R8.95.
* Tailings Storage Facility
** Grade control drilling only.
All mines exclusive of grade control and cover drilling except where it is included in the Capex budget.
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
47
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SOUTH AFRICA REGION
The South Africa Region’s Resource base has
increased by nine per cent net of depletion
primarily because of the increase in the gold
(cid:115)(cid:0) (cid:51)(cid:79)(cid:85)(cid:84)(cid:72)(cid:0) (cid:36)(cid:69)(cid:69)(cid:80)(cid:0) (cid:67)(cid:79)(cid:78)(cid:84)(cid:73)(cid:78)(cid:85)(cid:69)(cid:68)(cid:0) (cid:68)(cid:69)(cid:86)(cid:69)(cid:76)(cid:79)(cid:80)(cid:73)(cid:78)(cid:71)(cid:0) (cid:65)(cid:78)(cid:68)(cid:0)
enhancing the Resource models and as
South Deep
The remodelled and restated South Deep
a consequence has now designed and
figures reported for the Upper Elsburg reefs
price and the additional TSF gold ounces. The
scheduled just under 50 per cent of the
are from the ground between 87 and 110
total Reserve has decreased by three per cent,
declared Reserve.
net of mined depletion. The South Africa Region
currently accounts for 84 per cent and 80 per
Driefontein
levels. The new commodity price and updated
technical and economic parameters have been
used in the estimation process. The figures for
cent of the Group’s attributable precious metal
Enhanced geological modelling and re-zoning
South shaft (Old Mine) and the ground below
and gold equivalent Resource and Reserve
of the Multi Band Carbon Leader Reef facies
infrastructure, together with the majority of the
base respectively.
at Driefontein is providing better resolution
VCR, continued to be stated as reviewed and
The application to convert South Deep’s old
order mining rights, and to include Uncle Harry’s
Prospecting Right into a new order mining right,
was submitted in Q2 F2009 to the Department
of Mineral Resources (DMR) for approval.
The tempo of exploration has significantly
increased year on year, with drilling expenditure
for the 12 months ending 30 June 2009
amounting to R89 million (R53 million for
F2008). South Deep accounted for R52.91
million and was the main contributor following
the initiation of an extensive surface and
underground exploration programme in F2009,
aligned
to
facilitate geology models with
improved resolution that will underpin resource
definition.
The following points are noteworthy:
(cid:115)(cid:0) (cid:52)(cid:72)(cid:69)(cid:0)(cid:85)(cid:82)(cid:65)(cid:78)(cid:73)(cid:85)(cid:77)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:71)(cid:79)(cid:76)(cid:68)(cid:0)(cid:50)(cid:69)(cid:83)(cid:79)(cid:85)(cid:82)(cid:67)(cid:69)(cid:0)(cid:77)(cid:79)(cid:68)(cid:69)(cid:76)(cid:83)(cid:0)(cid:70)(cid:79)(cid:82)(cid:0)
the West Wits TSF have been generated
of the geological domains. A selective mining
approved by an Independent Review Panel
cut methodology is being applied to the Multi
of consultants as at December 2005. The
Band Carbon Leader, which reduces dilution
underground and surface exploration drilling
and significantly improves the stope grades
programme in the mine lease area and in
(g/t Au). It also mitigates the geotechnical
Uncle Harry’s to enhance the confidence in the
risk associated with exposing
the
less
estimate, continued during the year.
competent
hangingwall
quartzites.
The
geological model of the Middelvlei Reef was
The key milestones for South Deep in the next
reviewed and upgraded during the past year
three years include:
and as a consequence
the development
(cid:115)(cid:0)(cid:0)(cid:0)(cid:52)(cid:72)(cid:69)(cid:0)(cid:67)(cid:79)(cid:77)(cid:77)(cid:73)(cid:83)(cid:83)(cid:73)(cid:79)(cid:78)(cid:73)(cid:78)(cid:71)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:78)(cid:69)(cid:87)(cid:0)(cid:84)(cid:65)(cid:73)(cid:76)(cid:73)(cid:78)(cid:71)(cid:83)(cid:0)(cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0)
strategies at the 6 and 8 Shaft complexes have
towards the end of 2011;
been altered accordingly.
(cid:115)(cid:0)(cid:0)(cid:0)(cid:52)(cid:72)(cid:69)(cid:0) (cid:69)(cid:81)(cid:85)(cid:73)(cid:80)(cid:80)(cid:73)(cid:78)(cid:71)(cid:0) (cid:79)(cid:70)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:54)(cid:69)(cid:78)(cid:84)(cid:73)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0) (cid:83)(cid:72)(cid:65)(cid:70)(cid:84)(cid:0) (cid:73)(cid:78)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0)
Kloof
At Kloof 7 shaft, positive drilling results in the 69
next 12 months;
(cid:115)(cid:0)(cid:0)(cid:0)(cid:52)(cid:72)(cid:69)(cid:0) (cid:67)(cid:79)(cid:78)(cid:67)(cid:85)(cid:82)(cid:82)(cid:69)(cid:78)(cid:84)(cid:0) (cid:83)(cid:84)(cid:65)(cid:82)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0) (cid:79)(cid:70)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:18)(cid:20)(cid:16)(cid:0) (cid:77)(cid:69)(cid:84)(cid:82)(cid:69)(cid:0)
deepening of the shaft to a final depth of
line decline area below 39 level have resulted
2,995 metres by mining contractor Murray &
in the original geometry of the high grade
Roberts Cementation;
Ventersdorp Contact Reef (VCR) Sandy 1 facies
(cid:115)(cid:0)(cid:0)(cid:0)(cid:52)(cid:72)(cid:69)(cid:0) (cid:67)(cid:79)(cid:77)(cid:77)(cid:73)(cid:83)(cid:83)(cid:73)(cid:79)(cid:78)(cid:73)(cid:78)(cid:71)(cid:0) (cid:79)(cid:70)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:54)(cid:69)(cid:78)(cid:84)(cid:73)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0) (cid:83)(cid:72)(cid:65)(cid:70)(cid:84)(cid:0)
being increased. The Sandy 1 facies around
rock winder by June 2012.
the 45 level area to the west of 4 shaft, was also
These milestones are necessary to facilitate the
increased following new borehole intersections.
build-up to full production by December 2014.
and
incorporated
in
the pre-feasibility
study. A feasibility study has commenced
Beatrix
and should be completed within the F2010
At Beatrix, maintenance of main and secondary
WEST AFRICA REGION
The West Africa Region’s Resource base has
financial year;
(cid:115)(cid:0) (cid:53)(cid:78)(cid:68)(cid:69)(cid:82)(cid:71)(cid:82)(cid:79)(cid:85)(cid:78)(cid:68)(cid:0) (cid:85)(cid:82)(cid:65)(cid:78)(cid:73)(cid:85)(cid:77)(cid:0) (cid:50)(cid:69)(cid:83)(cid:79)(cid:85)(cid:82)(cid:67)(cid:69)(cid:0) (cid:77)(cid:79)(cid:68)(cid:69)(cid:76)(cid:83)(cid:0)
have been generated for Driefontein, Kloof
and South Deep (Upper Elsburg reefs 87 –
110 level);
development volumes, particularly at South
increased by eight per cent net of depletion
Section, has provided for continued ore body
primarily because of the increase in gold price.
definition and selective mining of relevant
The total Reserve has decreased slightly by
areas. At North Section, ongoing resolution of
one per cent, net of mined depletion. The West
geological facies and value trends are being
Africa Region currently accounts for five per
(cid:115)(cid:0) (cid:33)(cid:76)(cid:76)(cid:0) (cid:80)(cid:82)(cid:73)(cid:77)(cid:65)(cid:82)(cid:89)(cid:0) (cid:79)(cid:70)(cid:70)(cid:13)(cid:82)(cid:69)(cid:69)(cid:70)(cid:0) (cid:68)(cid:69)(cid:86)(cid:69)(cid:76)opment at the long
life shafts should be fully mechanised by the
driven by underground exploration drilling
cent and 11 per cent of the Group’s attributable
and detailed geological mapping, which
precious metal and gold equivalent Resource
end of Q4 F2010. This should have a positive
defines areas of potential that will contribute
and Reserve base respectively
impact on the safety performance and is
to
the
future sustainability and volume
expected to increase productivity, which in
build-up in the Section. Key areas targeted
Tarkwa
turn should increase available Reserves;
for underground and surface exploration
The Tarkwa Carbon In Leach (CIL) plant
(cid:115)(cid:0) (cid:36)(cid:85)(cid:82)(cid:73)(cid:78)(cid:71)(cid:0) (cid:38)(cid:18)(cid:16)(cid:17)(cid:16)(cid:0) (cid:65)(cid:0) (cid:77)(cid:73)(cid:78)(cid:69)(cid:0) (cid:68)(cid:69)(cid:83)(cid:73)(cid:71)(cid:78)(cid:12)(cid:0) (cid:80)(cid:76)(cid:65)(cid:78)(cid:78)(cid:73)(cid:78)(cid:71)(cid:0) (cid:65)(cid:78)(cid:68)(cid:0)
financial comparison will be undertaken
drilling at Beatrix in F2010 include the Western
expansion project was completed
in Q2
Decline area at North Section, the G Block
F2009. The expanded CIL plant is on track
between deepening 9 sub-vertical shaft
extension and Vlakpan areas at South
to reach full planned production in Q1 F2010.
and developing declines below 5 Shaft at
Section and the North Block at West Section
This expansion increases the mill capacity to
Driefontein;
(4 shaft).
12.3 Mtpa and maintains planned production
48
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
MINERAL RESOURCES AND RESERVES
continued
at between 650 koz to 750 koz per annum. In
addition, the Heap Leach (HL) treatment route
has a capacity of 9.85 Mtpa translating to a
combined CIL and HL planned production of
between 700 koz to 800 koz per annum
Processing at the South Heap Leach was
phased out in December 2009 and the current
focus is on constructing a High Pressure Grind
Roll (HPGR) pilot plant to conduct a 1.0 Mt plant
scale test of the technology in Q2 F2010. The
tests will determine the viability and increased
recoveries that potentially could be achieved
through this process.
Damang
The Damang Pit Cutback (DPCB) complex
continues to provide a window of opportunity
to explore attractive targets and increase
the mine’s operational footprint. A significant
increase in Reserve at Huni (within the DPCB
complex), following Resource model updates
and optimisation at US$800/oz, adds to this
flexibility. The strategy to investigate potential
underground mining from the DPCB open pit is
planned to be evaluated during F2010.
Damang plans to accelerate its recent rate
of discovery to maintain a pipeline of quality
projects and to provide additional mineable
reserves to drive an extension to the LoM.
On-mine lease exploration activities in F2010 will
be assisted by the Near Mine Exploration initiative
to ensure that the highest potential targets
are tested as a priority. Prime targets include
Amoanda North, Damang North and Nohokoa.
The current
focus on commissioning a
secondary crusher at the Damang Processing
Plant by the fourth quarter of F2010 is aimed at
increasing the treatment of high grade fresh ore
to ensure flexibility and to mitigate the current
dependency on lower grade oxide ore. This
facility will allow for better blending ratios of up
to 90 per cent high grade fresh ore and 10 per
cent oxide ore.
and discovery. The total Reserve has increased
by 22 per cent, net of mined depletion due
to the increase in discovery and gold price.
The Australasia Region currently accounts for
three per cent and four per cent of the Group’s
attributable precious metal and gold equivalent
Resource and Reserve base respectively.
focus on, and contribute towards, improved
mine design, sequencing and productivity
through primary drilling and ore body definition.
Reductions in key quality parameters such as
dilution and inherent gold losses to improve the
mine to mill recovery and subsequent revenue
streams, will also be targeted.
St Ives
The Resource and Reserve at St Ives has
been increased following a year of continued
successful exploration. The overall exploration
strategy and framework implemented over the
Agnew
Ongoing exploration of the Waroonga complex
the Kim
which primarily concentrated on
South and Main lodes has enabled Agnew to
continue to add to the Resource and Reserve
past few years has consisted of systematic full
base year on year for the last three years.
field air core drill programmes, integrated with
A geological study of the whole Waroonga
detailed geological mapping and modelling
complex
is underway
to provide better
supported by the application of best practices
ore definition and optimise the exploration
such as regional geochemistry, multi element
programme. Outside of Waroonga, exploration
sampling, geophysics and visual 3D modelling.
will be focused within the highly prospective
Mine Central Corridor that hosts the vast
In particular, exploration spend for F2009 at
majority of the larger major gold ore bodies
St Ives was dominated by the drill out of the
discovered in the region (Songvang, Crusader
Athena and surrounding environments within
complex and Redeemer complex).
the prospective Condensor North mining area,
which has culminated in the declaration of the
initial Reserve (399 koz) from this project area.
SOUTH AMERICA REGION
The South America Region’s attributable
Significant volumes of drilling and structural/
gold and gold equivalent Resource base has
geological understanding were completed
decreased by nine per cent net of depletion
at this site during the past year and the local
primarily due to geotechnical changes (flattening
knowledge base is well advanced. Further
of slope angles) and increases in operating
depth and extensional drilling will be completed
costs. The total attributable gold equivalent
in F2010 as options to bring this ore body into
Reserve has decreased by six per cent, net of
future production are evaluated.
mined depletion. The South America Region
Further contributions to the St Ives Reserve
cent of the Group’s attributable precious metal
growth came from discoveries and extension
and gold equivalent Resource and Reserve
currently accounts for two per cent and six per
at the Argo (+151 koz) and Belleisle (+46 koz)
base respectively.
underground mines, where extension drilling
and improved ore body modelling/structural
Production at Cerro Corona started in August
control reviews were conducted and extensions
2008 and reached steady state of approximately
drilled out. At the Cave Rocks underground
500,000 tonnes per month, producing about
mine, geological work focused on defining
3,100 metric tons copper per month and
ore body geometry, continuity and spatial
12,000 oz gold per month in February 2009.
distribution during the past year, which will also
Construction of the Tailings Storage Facility is
provide the framework for future extensional
progressing according to schedule. Abutments
drilling programmes.
AUSTRALASIA REGION
The Australasia Region’s Resource base has
increased by 19 per cent net of depletion
primarily because of the increase in gold price
Ives,
improvement programmes
Two continuous
at St
the Underground Department
Improvement Programme (UDIP) and Open Pit
Department Improvement Programme (ODIP)
were initiated in F2009. These programmes will
clean-up,
restricted placement areas and
higher than expected precipitation are the
main challenges to construction. Following
the revision to the geotechnical model, the
slope angles have been modified resulting in
an increase in the waste stripping, which may
exceed the current waste storage facility. The
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
49
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:
i
South Africa Region Managed Mineral Reserve Sensitivity
)
z
o
M
(
l
d
o
G
70
(cid:1)0
50
40
30
20
10
0
)
z
o
M
(
l
d
o
G
20
15
10
5
0
4.0
3.2
2.4
1.6
0.8
0.0
)
z
o
M
(
l
d
o
G
i
M
n
e
r
a
l
R
e
s
o
u
r
c
e
s
a
n
d
R
e
s
e
r
v
e
s
207,000
207 000
(-10%)
218,500
218 500
(-5%)
230 000
230,000
241,500
241 500
(+5%)
253,000
253 000
(+10%)
287,500
287 500
(+25%)
Reserve Gold Price (R/kg)
Driefontein
Kloof
Beatrix
South Deep
West Africa Region Managed Mineral Reserve Sensitivity
720
(-10%)
760
(-5%)
800
840
(+5%)
880
(+10%)
1,000
(+25%)
Reserve Gold Price (US$/oz)
Tarkwa
Damang
Australasia Region Managed Mineral Reserve Sensitivity
900
(-10%)
950
(-5%)
1,000
1,050
(+5%)
1,100
(+10%)
1,250
(+25%)
Reserve Gold Price (A$/oz)
St Ives
Agnew
surplus tonnage will have to be accommodated
at an alternative on-mine site. Investigations into
a potential expanded or supplementary tailings
facility are in progress and will be completed in
F2010.
ARCTIC PLATINUM PROJECT
During F2009 North American Palladium Limited
(NAP) informed Gold Fields Finland Oy that it
will not follow its option to acquire up to 60 per
cent of the Arctic Platinum Project (APP). During
the past two years NAP completed two phases
of infill drilling on the SK Reef (21,723m) and
Suhanko Project plus extensions (16,844m).
Unfortunately the Resource modelling and
estimation had not been completed by NAP by
31 August 2008 when the agreement expired,
but all drill cores and assay data have been
delivered to Gold Fields. The new geological
information is being reviewed for both project
areas and revised resource models should be
completed within F2010.
Emphasis has
shifted
from geological
development of the Suhanko Project to the
examination and testing of Platsol processing
technology. New metallurgical recovery and
operating cost estimates are being developed
and when this work is completed, an updated
Resource will be estimated based on a
revised set of precious and base metal price
assumptions.
MINERAL RESERVE
SENSITIVITY
The sensitivity of Reserve ounces at all the
operations is shown in the accompanying
charts, at -5 per cent, -10 per cent and +5 per
cent, +10 per cent and +25 per cent, above
and below the base gold price used in this
declaration. Surface low grade stockpiles are
specifically included. South Deep has been
included across the range at its base declaration
prices. The +25 per cent flex is included to help
reflect the current commodity price trend.
The Reserve sensitivities are not based on
detailed depletion schedules and should be
considered on a relative and indicative basis
only.
50
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
MINERAL RESOURCES AND RESERVES
continued
South America Region Managed Mineral Reserve Sensitivity
)
z
o
M
(
q
E
u
A
-
u
C
+
d
o
G
l
6
5
4
3
2
1
0
Note:
720
(-10%)
760
(-5%)
800
840
(+5%)
880
(+10%)
1,000
(+25%)
Reserve Gold Price (US$/oz)
Cerro Corona
Cerro Corona Reserves are constrained by the Tailings Storage Facility (TSF). Supplementary facilities may allow
for expansion of the Reserve base.
COMPETENT PERSONS
The competent persons designated in terms of
the 2007 SAMREC Code taking responsibility
The named persons are permanent employees
of Gold Fields Limited. Additional information
for the reporting of Gold Fields’ Resources and
summarising
the mine based competent
Reserves are the respective mine based Mineral
person teams involved with the compilation
Resource Managers.
of the Resource and Reserve declaration per
Operation is included in the ‘Technical Short-
Corporate
governance
on
the
overall
Form Reports’.
compliance of these figures has been overseen
by Tim Rowland, Vice President Technical South
Note:
African Operations [BSc (Hons) Geology, MSc
A comprehensive
review of
the Group’s
Mineral Exploration, GDE Mining Engineering,
Resources and Reserves as at 30 June 2009,
Pr. Sci. Nat. (Registration number 400122/2000)
including locality and mine infrastructure plans
FSAIMM, FGSSA, GASA, 23 years experience
of all the operations, is available in the ‘Mineral
and Kevin Robertson, Senior Consultant Mineral
Resources and Mine Planning [NHD (Economic
Geology), Post Graduate Diploma in Business
Engineering Management, GDE (Mining), MEng
(Mining), Pri. Sci. Nat. (Registration number
Resources and Mineral Reserves Overview
2009’ or may be downloaded from the Gold
Fields website (www.goldfields.co.za) as a pdf
file using Adobe Acrobat Reader. Rounding of
figures in this report may result in computational
discrepancies. Where this occurs it is deemed
400127/04)], 23 years experience.
not to be significant.
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
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GOLD FIELDS LIMITED CLASSIFIED MINERAL RESOURCE AND MINERAL RESERVE STATEMENT
as at 30 June 2009
HEADLINE NUMBERS
Resources
Reserves
30 June 2009
Totals including platinum
Managed
Attributable
Totals including platinum
and gold equivalents
(from copper)
Managed
Attributable
SUMMARY1
Tons
(Mt)
2,143.1
1,970.4
Tons
(Mt)
2,143.1
1,970.4
–
–
–
–
Au+2PGE
(Mt)
June 2008
Au+2PGE
(Moz)
278.493
267.978
257.786
247.123
Au+2PGE
+AuEq
(Moz)
Au+2PGE
+AuEq
(Moz)
282.424
271.150
262.083
250.591
30 June 2009
Tons
(Moz)
747.1
641.4
Tons
(Mt)
747.1
641.4
GOLD
Resources (100%)
Reserves (100%)
30 June 2009
Grade
(g/t)
Tons
(Mt)
June 2008
Gold
(Moz)
Gold
(Moz)
30 June 2009
Grade
(g/t)
June 2008
Gold
(Moz)
Gold
(Moz)
Tons
(Mt)
Au+2PGE
(Moz)
June 2008
Au+2PGE
(Moz)
83.019
78.863
84.773
80.530
Au+2PGE
+AuEq
(Moz)
Au+2PGE
+AuEq
(Moz)
85.736
81.055
87.630
82.835
–
–
–
–
Attributable (%)
30 June 2009
Resource Reserve
(Moz)
(Moz)
(%)
South African operations
171.2
Driefontein
255.2
Kloof
260.1
South Deep 2
Uncle Harry’s 3
78.0
Beatrix
93.0
Tailings Storage Facilities (TSF) 453.0
9.6
9.6
7.6
5.8
5.9
0.3
52.781
78.954
63.826
14.566
17.598
4.348
44.400
71.774
63.968
16.504
16.107
1.167
75.2
53.2
149.4
–
41.0
–
7.5
6.2
6.1
–
4.9
–
18.202
10.521
29.486
–
6.448
–
19.702
11.070
29.127
–
6.696
–
100
100
100
74
100
100
52.781
78.954
63.826
10.779
17.598
4.348
18.202
10.521
29.486
–
6.448
–
Total South Africa Region
1,310.5
5.5 232.072 213.920
318.8
6.3
64.657
66.595
228.285
64.657
Ghana operations
Tarkwa
Damang
Total West Africa Region
Australia operations
St Ives
Agnew 4
Total Australasia Region
Peru operation
Cerro Corona
348.7
74.9
423.6
63.8
21.2
85.0
155.8
Total South America Region
155.8
GFL GOLD TOTALS
1.4
1.8
16.187
4.283
15.435
3.490
270.0
36.1
1.2
1.6
10.676
1.820
11.313
1.354
71.1
71.1
11.509
3.045
7.591
1.294
1.5
20.470
18.925
306.1
1.3
12.496
12.667
71.1
14.554
8.885
2.8
5.1
3.3
0.8
0.8
5.643
3.497
4.538
3.125
9.140
7.663
4.209
4.677
4.209
4.677
30.1
2.9
33.0
89.3
89.3
2.4
7.8
2.9
1.0
1.0
3.5
3.8
2.322
0.722
1.879
0.615
3.044
2.494
100
100
100
5.643
3.497
2.322
0.722
9.140
3.044
2.822
3.017
80.7
3.397
2.277
2.822
3.017
80.7
3.397
2.277
83.019
84.773
78.863
80.530
255.377
78.863
Total Gold Managed
1,974.8
4.2 265.892 245.185
747.1
Total Gold Attributable
1,802.1
4.4 255.377 234.522
641.4
52
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
MINERAL RESOURCES AND RESERVES
continued
SUMMARY1 (continued)
Resources (100%)
Reserves (100%)
COPPER
Tons
(Mt)
Grade Copper
(M lbs)
(% Cu)
30 June 2009
June 2008
Copper
(M lbs)
30 June 2009
June 2008
Grade Copper Copper
(M lbs)
(M lbs)
(% Cu)
Tons
(Mt)
Attributable (%)
30 June 2009
Resource Reserve
(M lbs)
% (M lbs)
Cerro Corona (copper only)
148.2
0.4
1,429
1,637
89.3
0.5
988
1,061
80.7
1,154
797
Au-Eq
(Moz)
Au-Eq
(Moz)
Au-Eq
(Moz)
Au-Eq
(Moz)
Au-Eq
(Moz)
Au-Eq
(Moz)
Cerro Corona – Gold Equivalent
3.931
4.297
–
–
2.717
2.857
80.7
3.172
2.193
URANIUM
Tons
(Mt)
Grade Uranium Uranium
(M lbs)
(M lbs)
(kg/t)
Tons
(Mt)
Grade Uranium Uranium
(’000 kg)
(’000 kg)
(kg/t)
Uranium Uranium
(M lbs)
(M lbs)
(%)
Driefontein Underground
Kloof Underground
South Deep Underground
50.2
35.5
71.6
0.096
0.045
0.073
10.545
3.554
11.583
Total Uranium Underground
157.3
0.074
25.681
–
–
–
–
Driefontein TSF
Kloof TSF
South Deep TSF
164.7
234.9
53.4
0.061
0.039
0.074
22.255
20.450
8.726
11.380
–
–
Total Uranium TSF
453.0
0.051
51.431
11.380
Total Uranium Managed
610.3
0.057
77.113
11.380
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
-
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
100
100
100
10.545
3.554
11.583
100
25.681
100
100
100
22.255
20.450
8.726
100
51.431
100
77.113
–
–
–
–
–
–
–
–
PLATINUM
Tons
(Mt)
2PGE
+ Au
(g/t)
2PGE
+ Au
(Moz)
2PGE
+ Au
(Moz)
Tons
(Mt)
2PGE
+ Au
(g/t)
2PGE
+ Au
(Moz)
2PGE
+ Au
(Moz)
2PGE
+ Au
(Moz)
2PGE
+ Au
(Moz)
(%)
Arctic Platinum Project 5
168.3
2.3
12.601
12.601
–
–
–
–
100
12.601
–
Footnotes: See page 56
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
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GOLD FIELDS LIMITED CLASSIFIED MINERAL RESOURCE AND MINERAL RESERVE STATEMENT
as at 30 June 2009
SOUTH AFRICA OPERATIONS1
Resources
30 June 2009
Tons Grade
(g/t)
(Mt)
June 2008
Gold
(Moz)
Gold
(Moz)
Driefontein
Measured
Indicated AI
Inferred AI
Total Above Infrastructure
Indicated BI 6
Inferred BI 6
50.2
24.9
17.4
92.5
43.2
25.9
10.5
12.7
5.9
16.887
10.177
3.343
Driefontein
Proved
Probable AI
15.926
9.430
–
10.2
30.407
25.356
Total Above Infrastructure
12.4
5.9
17.262
4.899
18.847
Probable BI 6
Total underground
161.6
10.1
52.568
44.203
Total underground
Indicated surface rock dumps
Driefontein Total
Measured surface tailings
Indicated surface tailings
Inferred surface tailings
Driefontein TSF
Kloof
Measured
Indicated AI
Total Above Infrastructure
Indicated BI 7
Total underground
Indicated surface rock dumps
Kloof Total
Kloof TSF (Measured)
South Deep 2
Measured
Indicated AI
Total Above Infrastructure
Indicated BI 8
Total underground
South Deep Total
South Deep TSF (Measured)
Uncle Harry’s Prospecting Area
(Inferred Resource) 3
Beatrix
Measured
Indicated AI
Inferred AI
Total Above Infrastructure
Indicated BI 9
Total underground
Beatrix Total
9.6
171.2
150.9
–
13.8
164.7
71.1
73.9
145.0
79.5
224.6
30.7
255.2
234.9
41.6
125.9
167.5
92.6
260.1
260.1
53.4
0.7
9.6
0.3
–
0.2
0.3
0.213
0.197
Probable surface rock dumps
52.781
44.400 Driefontein Total
1.703
–
0.102
1.805
–
1.167
–
1.167
Kloof
11.6
8.0
26.549
19.071
22.962
26.839
Proved
Probable AI
9.8
45.620
49.801
Total Above Infrastructure
12.8
32.729
21.355
Probable BI 7
10.9
78.350
71.156
Total underground
0.6
9.6
0.3
7.4
8.7
8.3
6.3
7.6
7.6
0.2
0.604
0.618
Probable surface rock dumps
78.954
71.774 Kloof Total
2.145
–
South Deep 2
9.890
35.038
8.821
36.249
Proved
Probable AI
44.928
45.070
Total Above Infrastructure
18.898
18.898
Probable BI 8
63.826
63.968
Total underground
63.826
63.968 South Deep Total
0.399
–
78.0
5.8
14.566
16.504 Uncle Harry’s Prospecting Area
–
25.1
37.5
1.9
64.5
28.6
93.0
93.0
6.2
6.6
8.8
6.5
4.5
5.9
5.9
5.002
7.942
0.540
Beatrix
Proved
Probable AI
4.457
8.287
–
13.484
12.744
Total Above Infrastructure
4.114
3.362
Probable BI 9
17.598
16.107
Total underground
17.598
16.107
Grand Total
13.9
24.7
38.6
2.4
41.0
41.0
Total South Africa Region
1310.5
5.5 232.072 213.920
Total South Africa Region
318.8
Footnotes: See page 56
Reserves
30 June 2009
Tons Grade
(g/t)
(Mt)
June 2008
Gold
(Moz)
Gold
(Moz)
17.6
20.6
38.2
27.4
65.6
9.6
75.2
19.2
18.4
37.6
3.4
41.0
12.2
53.2
15.2
67.6
82.8
66.6
149.4
149.4
7.4
8.7
8.1
9.2
8.5
0.7
7.5
7.6
7.8
7.7
8.0
7.7
0.9
6.2
5.9
6.6
6.5
5.8
6.1
6.1
–
4.7
5.0
4.9
4.8
4.9
4.9
6.3
4.157
5.735
4.834
6.003
9.892
10.837
8.097
8.668
17.989
19.505
0.213
0.197
18.202
19.702
4.704
4.609
5.334
4.790
9.313
10.124
0.868
0.584
10.180
10.708
0.341
0.362
10.521
11.070
2.906
14.265
3.000
13.812
17.171
16.812
12.315
12.315
29.486
29.127
29.486
29.127
–
–
2.087
3.990
1.781
4.435
6.077
0.371
6.448
6.448
6.216
0.480
6.696
6.696
64.657
66.595
54
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
MINERAL RESOURCES AND RESERVES
continued
GOLD FIELDS LIMITED CLASSIFIED MINERAL RESOURCE AND MINERAL RESERVE STATEMENT
as at 30 June 2009
INTERNATIONAL OPERATIONS
Resources
30 June 2009
Tons Grade
(g/t)
(Mt)
June 2008
Gold
(Moz)
Gold
(Moz)
Reserves
30 June 2009
Tons Grade
(g/t)
(Mt)
June 2008
Gold
(Moz)
Gold
(Moz)
GHANA OPERATIONS
Tarkwa
Measured
Indicated
Inferred
Total
144.7
173.4
26.0
344.1
1.5
1.2
3.1
6.800
6.705
2.569
6.914
6.021
2.411
Tarkwa
Proved
Probable
149.6
116.0
1.3
1.2
6.220
4.354
6.371
4.857
1.5
16.075
15.346
Total
265.6
1.2
10.575
11.228
Measured low-grade stockpiles
4.7
0.8
0.112
0.090
Proved low-grade stockpiles
4.4
0.7
0.101
0.085
Tarkwa Total
348.7
1.4
16.187
15.435
Tarkwa Total
270.0
1.2
10.676
11.313
Damang
Measured
Indicated
Inferred
Total
Indicated low-grade stockpiles
Damang Total
9.4
48.0
12.5
69.9
5.1
74.9
1.5
1.5
3.4
1.8
1.1
1.8
Damang
0.464
2.268
1.367
0.680
1.309
1.336
Proved
Probable
4.100
3.325
Total
0.184
0.165
Probable low-grade stockpiles
4.283
3.490 Damang Total
3.5
27.5
31.0
5.1
36.1
1.8
1.6
1.7
1.1
1.6
0.207
1.429
0.388
0.800
1.636
1.189
0.184
0.165
1.820
1.354
Total West Africa Region
423.6
1.5
20.470
18.925
Total West Africa Region
306.1
1.3
12.496
12.667
AUSTRALIA OPERATIONS
St. Ives
Measured
Indicated
Inferred
Total
Measured low-grade stockpiles
St Ives Total
Agnew 4
Measured
Indicated
Inferred
Total
Measured low-grade stockpiles
Agnew Total
Total Australasia Region
2.5
41.3
15.9
59.7
4.1
63.8
3.7
9.5
7.7
20.9
0.3
21.2
85.0
4.0
2.7
3.2
2.9
1.1
2.8
4.6
5.1
5.7
5.2
1.1
5.1
3.3
St. Ives
0.322
3.545
1.636
0.250
2.951
1.175
Proved
Probable
5.503
4.376
Total
0.139
0.163
Proved low-grade stockpiles
5.643
4.538 St Ives Total
Agnew4
0.543
1.539
1.404
0.365
1.595
1.148
Proved
Probable
3.486
3.108
Total
0.012
0.018
Proved low-grade stockpiles
3.497
3.125 Agnew Total
1.9
24.1
26.0
4.1
30.1
0.6
1.9
2.5
0.3
2.9
9.140
7.663
Total Australasia Region
33.0
4.3
2.5
2.6
1.1
2.4
8.9
8.7
8.7
0.9
7.8
2.9
0.260
1.922
0.170
1.547
2.182
1.716
0.139
0.163
2.322
1.879
0.186
0.526
0.106
0.494
0.712
0.600
0.010
0.015
0.722
0.615
3.044
2.494
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
55
S
e
c
t
i
o
n
1
:
i
B
u
s
n
e
s
s
R
e
v
e
w
s
:
i
i
M
n
e
r
a
l
R
e
s
o
u
r
c
e
s
a
n
d
R
e
s
e
r
v
e
s
GOLD FIELDS LIMITED CLASSIFIED MINERAL RESOURCE AND MINERAL RESERVE STATEMENT
as at 30 June 2009
INTERNATIONAL OPERATIONS1 (continued)
Resources
30 June 2009
June 2008
Gold
(Moz)
Gold
(Moz)
Tons Grade
(g/t)
(Mt)
27.5
116.7
4.9
149.1
6.7
155.8
155.8
1.0
0.8
0.5
0.8
1.4
0.8
0.8
PERU OPERATIONS
Cerro Corona
Measured
Indicated
Inferred
Total
Measured stockpiles
Cerro Corona Total 10
Total South America Region
INTERNATIONAL OPERATIONS
Reserves
30 June 2009
Tons Grade
(g/t)
(Mt)
June 2008
Gold
(Moz)
Gold
(Moz)
Cerro Corona
0.894
2.940
0.081
1.051
3.336
0.155
Proved
Probable
3.915
4.542
Total
0.295
0.135
Proved stockpiles
4.209
4.677
Cerro Corona Total 11
4.209
4.677
Total South America Region
21.4
66.6
88.1
1.2
89.3
89.3
1.1
0.9
1.0
1.2
1.0
1.0
0.756
2.017
0.843
2.145
2.773
2.988
0.049
0.029
2.822
3.017
2.822
3.017
Grand Total
664.4
1.6
33.820
31.265
Grand Total
428.4
1.3
18.362
18.178
TOTAL GFL (Managed)
Above Infrastructure
Below Infrastructure
1,705.0
269.8
3.4 187.989 182.723
9.0
77.902
62.462
Total GFL (Managed)
1,974.8
4.2 265.892 245.185
Total GFL (Managed)
Total Attributable to GFL
1,802.1
4.4 255.377 234.522
Total Attributable to GFL
647.3
99.8
747.1
641.4
2.9
6.7
61.368
62.726
21.651
22.047
3.5
83.019
84.773
3.8
78.863
80.530
Copper – Gold Equivalent
(Mt) Cu (%)
(Moz)
(Moz)
Copper – Gold Equivalent
(Mt) Cu (%)
(Moz)
(Moz)
Tons Grade Au-Eq Au-Eq
Tons Grade Au-Eq Au-Eq
Cerro Corona 12
148.2
0.4
3.931
4.297
Cerro Corona 12
89.3
0.5
2.717
2.857
Footnotes: See page 56
56
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
MINERAL RESOURCES AND RESERVES
continued
GOLD FIELDS LIMITED CLASSIFIED MINERAL RESOURCE AND MINERAL RESERVE STATEMENT
as at 30 June 2009
PROJECTS 1
Resources
Reserves
30 June 2009
June 2008
30 June 2009
June 2008
PLATINUM GROUP ELEMENTS (PGE)
2 PGE
+ Au
Tons Grade
(g/t)
(Mt)
2 PGE
+ Au
(Moz)
2 PGE
+ Au
(Moz)
2 PGE
+ Au
Tons Grade
(g/t)
(Mt)
2 PGE
+ Au
(Moz)
2 PGE
+ Au
(Moz)
Arctic Platinum Project 5
168.3
2.3
12.601
12.601
–
–
–
–
URANIUM
Driefontein Tailings (Measured)
Driefontein Tailings (Indicated])
Driefontein Tailings (Inferred)
Resources
30 June 2009
June 2008
Tons Grade Uranium Uranium
(Mt)
(kg/t)
(M lbs)
(M lbs)
150.9
0.064
21.444
–
–
–
–
11.380
13.8
0.027
0.811
–
Driefontein TSF Total
164.7
0.061
22.255
11.380
Driefontein Underground (Inferred)
50.2
0.096
10.545
–
Driefontein Total
214.9
0.069
32.800
11.380
Kloof Surface Tailings (Indicated)
234.9
0.039
20.450
Kloof Underground (Inferred)
35.5
0.045
3.554
Kloof Total
270.4
0.040
24.004
South Deep Surface Tailings (Indicated)
South Deep Underground (Inferred)
53.4
71.6
0.074
8.726
0.073
11.583
South Deep Total
Uranium Total
125.0
0.074
20.309
610.3
0.057
77.113
11.380
–
–
–
–
–
–
Reserves
30 June 2009
June 2008
Tons Grade Uranium Uranium
(Mt)
(kg/t)
(M lbs)
(M lbs)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Mineral Resources were calculated using gold prices of R285,000/kg in South Africa; A$1,250/oz in Australia; and US$1,000/oz in Ghana and Peru. The copper price used
was US$2.20lb for the Whittle Shell and US$2.75/lb for the gold equivalent computation.
Mineral Reserves were calculated using gold prices of R230,000/kg in South Africa; A$1,000/oz in Australia; and US$800/oz in Ghana and Peru. The copper price for
Reserves was US$1.75/lb for the Whittle Shell and US$2.20/lb for the gold equivalent computation.
All equivalent gold ounces reported are based on either current F2010 or F2009 mineral prices as applicable.
1 Managed, unless otherwise stated.
2 Aside from the restated Upper Elsburg (87 to 110 levels) Resources and Reserves, the South Deep fi gures are as per acquisition model.
3 Uncle Harry’s Prospecting Area Inferred Resources for F2010 at a 3g/t cut-off, with Prospecting Rights held by WAPL for which the shareholding is: GFL = 74% and
Peotona = 26%.
4 The Agnew Deposits, Miranda and Vivien are subject to a royalty agreement.
5 Gold Fields holds a 100% interest in the Arctic Platinum Project. Resource fi gures are historical and not as per current metal prices.
6 Driefontein BI refers to material below 50 level (3,420m below surface). The current studies for Reserves, through accessing the area via a sub-vertical shaft complex, are
currently being reviewed versus multiple declines, and this could have a material impact on the numbers.
7 Kloof BI refers to material below 45 level (3,350m below surface).
8 South Deep BI refers to material below 110 level (2,888m below surface).
9 Beatrix BI refers to material below 26 level (1,341m below surface).
10 Excludes copper Resources of 0.4 % Cu containing 1,429 M lbs copper (tons are however included). Copper open pit Resources comprise Measured of 26.7 Mt @
0.5 % Cu for 305 M lbs, Indicated of 115.6 Mt @ 0.4 % Cu for 1,076 M lb, Inferred of 4.8 Mt @ 0.3 % Cu for 35 M lb, and Measured stockpiles of 1.2 Mt @ 0.5 % for 14
M lb.
11 Excludes copper Reserves of 0.5 % Cu containing 988 M lbs copper (tons are however included). The copper Reserve classifi cation tonnages are the same as for gold
with open pit Proved copper Reserves of 0.6 % Cu for 266 M lbs, Probable of 0.5 % for 708 M lbs and Proved stockpiles of 0.5 % for 14 M lbs.
12 Copper equivalent ounces (copper revenue converted to gold equivalent ounces). Note that these tons are repeated in the gold statement.
AI = Above Infrastructure; BI = Below Infrastructure. All tons relate to metric units. Rounding-off of fi gures may result in minor computational discrepancies, where this
happens it is not deemed signifi cant. Resources are inclusive of Reserves.
For further details refer to the company’s website, www.goldfi elds.co.za.
Sustainable
Development 2009
2
0
0
9
A n
n
u a
l
R e
p
o
r
t
E
d
i
t
i
o n
Ethics and corporate
governance. Gold Fields is
committed to ethical and fair
business dealings and promotes
a corporate culture that is
(cid:85)(cid:86)(cid:85)(cid:20)(cid:90)(cid:76)(cid:74)(cid:91)(cid:72)(cid:89)(cid:80)(cid:72)(cid:85)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:85)(cid:86)(cid:85)(cid:20)(cid:87)(cid:86)(cid:83)(cid:80)(cid:91)(cid:80)(cid:74)(cid:72)(cid:83)(cid:3)
and which is socially and
environmentally responsible.
Gold Fields’ people. We
are continually striving for an
environment that encourages
innovation, transformation and
development, which will enable
our ideas and aspirations.
Health and Safety.
Nick Holland, Chief Executive
(cid:54)(cid:77)(cid:196)(cid:3)(cid:74)(cid:76)(cid:89)(cid:3)(cid:86)(cid:77)(cid:3)(cid:46)(cid:86)(cid:83)(cid:75)(cid:3)(cid:45)(cid:80)(cid:76)(cid:83)(cid:75)(cid:90)(cid:3)(cid:84)(cid:72)(cid:75)(cid:76)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)
statement ‘If we cannot mine
safely, we will not mine’. This
iconic statement has translated
into a vast improvement on
performance.
58
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
SUSTAINABLE DEVELOPMENT
OVERVIEW OF OUR
PERFORMANCE
F2009 highlights
(cid:115)(cid:0) (cid:0)(cid:36)(cid:69)(cid:86)(cid:69)(cid:76)(cid:79)(cid:80)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0) (cid:79)(cid:70)(cid:0) (cid:65)(cid:78)(cid:68)(cid:0) (cid:70)(cid:85)(cid:76)(cid:76)(cid:0) (cid:82)(cid:79)(cid:76)(cid:76)(cid:13)(cid:79)(cid:85)(cid:84)(cid:0) (cid:79)(cid:70)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:51)(cid:65)(cid:70)(cid:69)(cid:0)
Production Rules.
(cid:115)(cid:0) (cid:0)(cid:35)(cid:79)(cid:77)(cid:80)(cid:76)(cid:69)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:73)(cid:78)(cid:68)(cid:69)(cid:80)(cid:69)(cid:78)(cid:68)(cid:69)(cid:78)(cid:84)(cid:0)(cid:36)(cid:85)(cid:48)(cid:79)(cid:78)(cid:84)(cid:0)(cid:83)(cid:65)(cid:70)(cid:69)(cid:84)(cid:89)(cid:0)
assessment and the development of action
plans to address improvement opportunities.
(cid:115)(cid:0) (cid:0)(cid:36)(cid:69)(cid:83)(cid:80)(cid:73)(cid:84)(cid:69)(cid:0)(cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:78)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:65)(cid:76)(cid:0)(cid:108)(cid:0)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76)(cid:0)(cid:80)(cid:82)(cid:69)(cid:83)(cid:83)(cid:85)(cid:82)(cid:69)(cid:83)(cid:12)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)
Group avoided the implementation of any
formal retrenchment processes.
(cid:115)(cid:0) (cid:0)(cid:36)(cid:69)(cid:86)(cid:69)(cid:76)(cid:79)(cid:80)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:73)(cid:77)(cid:80)(cid:76)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:87)(cid:69)(cid:76)(cid:76)(cid:13)
being strategy.
(cid:115)(cid:0) (cid:0)(cid:41)(cid:51)(cid:47)(cid:17)(cid:20)(cid:16)(cid:16)(cid:17)(cid:12)(cid:0) (cid:47)(cid:40)(cid:51)(cid:33)(cid:51)(cid:17)(cid:24)(cid:16)(cid:16)(cid:17)(cid:0) (cid:65)(cid:78)(cid:68)(cid:0) (cid:33)(cid:51)(cid:20)(cid:24)(cid:16)(cid:17)(cid:0)
certifi cations maintained.
(cid:115)(cid:0) (cid:0)(cid:51)(cid:79)(cid:85)(cid:84)(cid:72)(cid:0)(cid:36)(cid:69)(cid:69)(cid:80)(cid:0)(cid:82)(cid:69)(cid:67)(cid:69)(cid:73)(cid:86)(cid:69)(cid:68)(cid:0)(cid:41)(cid:51)(cid:47)(cid:17)(cid:20)(cid:16)(cid:16)(cid:17)(cid:0)(cid:67)(cid:69)(cid:82)(cid:84)(cid:73)(cid:108)(cid:0)(cid:67)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:12)(cid:0)
which means all the South African operations
are now certifi ed.
(cid:115)(cid:0) (cid:0)(cid:36)(cid:82)(cid:73)(cid:69)(cid:70)(cid:79)(cid:78)(cid:84)(cid:69)(cid:73)(cid:78)(cid:12)(cid:0) (cid:43)(cid:76)(cid:79)(cid:79)(cid:70)(cid:0) (cid:65)(cid:78)(cid:68)(cid:0) (cid:34)(cid:69)(cid:65)(cid:84)(cid:82)(cid:73)(cid:88)(cid:0) (cid:65)(cid:76)(cid:76)(cid:0) (cid:85)(cid:80)(cid:71)(cid:82)(cid:65)(cid:68)(cid:69)(cid:68)(cid:0)
their OHSAS18001 to the 2007 version.
South Deep is ready to be audited in the fi rst
quarter of F2010.
(cid:115)(cid:0) (cid:0)(cid:52)(cid:72)(cid:69)(cid:0)(cid:66)(cid:69)(cid:83)(cid:84)(cid:0)(cid:69)(cid:86)(cid:69)(cid:82)(cid:0)(cid:83)(cid:65)(cid:70)(cid:69)(cid:84)(cid:89)(cid:0)(cid:89)(cid:69)(cid:65)(cid:82)(cid:0)(cid:73)(cid:78)(cid:0)(cid:38)(cid:18)(cid:16)(cid:16)(cid:25)(cid:14)
(cid:115)(cid:0) (cid:0)(cid:36)(cid:82)(cid:73)(cid:69)(cid:70)(cid:79)(cid:78)(cid:84)(cid:69)(cid:73)(cid:78)(cid:0) (cid:80)(cid:65)(cid:83)(cid:83)(cid:69)(cid:68)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:77)(cid:73)(cid:76)(cid:69)(cid:83)(cid:84)(cid:79)(cid:78)(cid:69)(cid:0) (cid:79)(cid:70)(cid:0) (cid:84)(cid:87)(cid:79)(cid:0)
million fatality free shifts.
(cid:115)(cid:0) (cid:0)(cid:51)(cid:79)(cid:85)(cid:84)(cid:72)(cid:0) (cid:36)(cid:69)(cid:69)(cid:80)(cid:0) (cid:80)(cid:65)(cid:83)(cid:83)(cid:69)(cid:68)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:77)(cid:73)(cid:76)(cid:69)(cid:83)(cid:84)(cid:79)(cid:78)(cid:69)(cid:0) (cid:79)(cid:70)(cid:0) (cid:79)(cid:78)(cid:69)(cid:0)
million fatality free shifts.
(cid:115)(cid:0) (cid:0)(cid:35)(cid:69)(cid:82)(cid:82)(cid:79)(cid:0)(cid:35)(cid:79)(cid:82)(cid:79)(cid:78)(cid:65)(cid:0)(cid:65)(cid:67)(cid:72)(cid:73)(cid:69)(cid:86)(cid:69)(cid:68)(cid:0)(cid:80)(cid:82)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:87)(cid:73)(cid:84)(cid:72)(cid:0)(cid:18)(cid:23)(cid:0)(cid:80)(cid:69)(cid:82)(cid:0)
cent of its permanent workforce and 40 per
cent of its contract workforce sourced from
local communities.
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on the Carbon Disclosure Project.
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(cid:45)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)
(cid:104)(cid:38)(cid:85)(cid:76)(cid:76)(cid:0)
Certifi cation” and “Substantial Compliance”
results.
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F2009 lowlights
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21 fatalities occurred during the year.
SUSTAINABLE DEVELOPMENT
POLICY STATEMENT
Gold Fields Limited seeks to operate in a
manner that presents a platform for responsible
investment. This will be achieved by integrating
sustainable development considerations into
the decision-making process. The result will
be an appropriate balance of the Company’s
requirements to perform fi nancially, to strive
toward world-class standards in environmental
management and to ensure broad social benefi t.
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(cid:73)(cid:78)(cid:67)(cid:73)(cid:68)(cid:69)(cid:78)(cid:84)(cid:83)(cid:0)
To attain the vision, Gold Fields commits to:
occurred during the year.
Key focus areas for F2010
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reduce risk to all employees.
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ment within the organisation.
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in the Group and progress our methane capture
project at the Beatrix operation.
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System) certifi cation at Cerro Corona.
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fatality free shifts.
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and safety management and another for
environmental and social initiatives.
our stakeholder engagement processes.
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(cid:115)(cid:0) (cid:0)(cid:53)(cid:78)(cid:68)(cid:69)(cid:82)(cid:84)(cid:65)(cid:75)(cid:69)(cid:0)(cid:73)(cid:84)(cid:83)(cid:0)(cid:66)(cid:85)(cid:83)(cid:73)(cid:78)(cid:69)(cid:83)(cid:83)(cid:0)(cid:65)(cid:67)(cid:84)(cid:73)(cid:86)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83)(cid:0)(cid:73)(cid:78)(cid:0)(cid:65)(cid:0)(cid:77)(cid:65)(cid:78)(cid:78)(cid:69)(cid:82)(cid:0)
that is ethical and adheres to sound systems
of corporate governance;
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social capital and to uphold human rights as
they apply to its operations;
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strategies;
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and safety performance through formalised
management systems and cycles of review;
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and to design and develop appropriate post-
mining land uses in consultation with host
communities and governments;
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regard to material stewardship and supply
chain management and to encourage or
require, where practical, business partners,
contractors and suppliers to adopt similar
objectives;
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economic development of communities that
are affected by its activities;
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stakeholders in a manner that is open and
participative; and
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and performance to ensure adherence to
these commitments.
Employees of Gold Fields Limited are expected
to play a fundamental role in achieving these
commitments by:
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into everyday practice; and
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(cid:84)(cid:79)(cid:0)
Group’s sustainable development policy.
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G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
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In keeping with our past practices of reporting
on materiality, we have again tailored the
sustainable development section of
this
report in accordance with our sustainable
development framework and associated issues
that are material or significant. The company
has an established culture of stakeholder
engagement and it is through the outcomes
of such engagements that materiality is often
determined. Stakeholder engagement in the
Group is extensive and is part of our daily
activities. Stakeholder groups include:
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(cid:115)(cid:0) (cid:45)(cid:69)(cid:68)(cid:73)(cid:65)(cid:27)
(cid:115)(cid:0) (cid:39)(cid:76)(cid:79)(cid:66)(cid:65)(cid:76)(cid:0)(cid:67)(cid:79)(cid:77)(cid:77)(cid:85)(cid:78)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0) (cid:50)(cid:69)(cid:71)(cid:85)(cid:76)(cid:65)(cid:84)(cid:79)(cid:82)(cid:89)(cid:0)(cid:65)(cid:85)(cid:84)(cid:72)(cid:79)(cid:82)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83)(cid:14)
SUSTAINABLE DEVELOPMENT
FRAMEWORK
In the last annual report we reported on the
progress made with the development of a
sustainable development framework for the
Group. This framework was developed through a
comprehensive process of reviewing numerous
principles and best practice, as they apply to
our organisation, and with regard to sustainable
development. The approach that was followed,
and the subsequent development of a new
set of policies and an overarching framework,
was not one of reinventing the wheel but rather
one of consolidation of best practice within the
group. This approach results from the fact that
many of the best practices enshrined within
various sustainable development principles
are not new to Gold Fields. For many years
we have implemented policies and protocols
with regard to the various components of
sustainable development and, as a result, this
approach was a significant opportunity for all
our operations to share knowledge and facilitate
cross pollination. The process has culminated in
the final version of our Sustainable Development
Framework. This framework consists of an
overarching sustainable development policy
with the following supporting policies:
An appropriate balance between the Group’s requirements
(cid:91)(cid:86)(cid:3) (cid:87)(cid:76)(cid:89)(cid:77)(cid:86)(cid:89)(cid:84)(cid:3) (cid:196)(cid:85)(cid:72)(cid:85)(cid:74)(cid:80)(cid:72)(cid:83)(cid:83)(cid:96)(cid:19)(cid:3) (cid:72)(cid:85)(cid:75)(cid:3) (cid:91)(cid:86)(cid:3) (cid:74)(cid:86)(cid:85)(cid:91)(cid:80)(cid:85)(cid:92)(cid:72)(cid:83)(cid:83)(cid:96)(cid:3) (cid:90)(cid:91)(cid:89)(cid:80)(cid:93)(cid:76)(cid:3) (cid:91)(cid:86)(cid:94)(cid:72)(cid:89)(cid:75)(cid:3)
(cid:94)(cid:86)(cid:89)(cid:83)(cid:75)(cid:20)(cid:74)(cid:83)(cid:72)(cid:90)(cid:90)(cid:3) (cid:90)(cid:91)(cid:72)(cid:85)(cid:75)(cid:72)(cid:89)(cid:75)(cid:90)(cid:3) (cid:80)(cid:85)(cid:3) (cid:76)(cid:85)(cid:93)(cid:80)(cid:89)(cid:86)(cid:85)(cid:84)(cid:76)(cid:85)(cid:91)(cid:72)(cid:83)(cid:3) (cid:84)(cid:72)(cid:85)(cid:72)(cid:78)(cid:76)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)
(cid:72)(cid:85)(cid:75)(cid:3)(cid:91)(cid:86)(cid:3)(cid:76)(cid:85)(cid:90)(cid:92)(cid:89)(cid:76)(cid:3)(cid:73)(cid:89)(cid:86)(cid:72)(cid:75)(cid:3)(cid:90)(cid:86)(cid:74)(cid:80)(cid:72)(cid:83)(cid:3)(cid:73)(cid:76)(cid:85)(cid:76)(cid:196)(cid:91)(cid:21)
(cid:115)(cid:0) (cid:47)(cid:67)(cid:67)(cid:85)(cid:80)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:65)(cid:76)(cid:0)(cid:40)(cid:69)(cid:65)(cid:76)(cid:84)(cid:72)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:51)(cid:65)(cid:70)(cid:69)(cid:84)(cid:89)(cid:27)
(cid:115)(cid:0) (cid:40)(cid:85)(cid:77)an Rights;
(cid:115)(cid:0) (cid:37)(cid:84)(cid:72)(cid:73)(cid:67)(cid:83)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:35)(cid:79)(cid:82)(cid:80)(cid:79)(cid:82)(cid:65)(cid:84)(cid:69)(cid:0)(cid:39)(cid:79)(cid:86)(cid:69)(cid:82)(cid:78)(cid:65)(cid:78)(cid:67)(cid:69)(cid:27)
(cid:115)(cid:0) (cid:50)(cid:73)(cid:83)(cid:75)(cid:0)(cid:45)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:27)
(cid:115)(cid:0) (cid:37)(cid:78)(cid:86)(cid:73)(cid:82)(cid:79)(cid:78)(cid:77)(cid:69)(cid:78)(cid:84)(cid:27)
(cid:115)(cid:0) (cid:0)(cid:45)(cid:65)(cid:84)(cid:69)(cid:82)(cid:73)(cid:65)(cid:76)(cid:0) (cid:51)(cid:84)(cid:69)(cid:87)(cid:65)(cid:82)(cid:68)(cid:83)(cid:72)(cid:73)(cid:80)(cid:0) (cid:65)(cid:78)(cid:68)(cid:0) (cid:51)(cid:85)(cid:80)(cid:80)(cid:76)(cid:89)(cid:0) (cid:35)(cid:72)(cid:65)(cid:73)(cid:78)(cid:0)
of this review, the Safety, Health, Environment
and Community subcommittee was renamed to
the Safety, Health and Sustainable Development
Committee. Reports
submitted
to
the
subcommittee are aligned with our Sustainable
Development Framework, as is this annual report.
Management;
(cid:115)(cid:0) (cid:35)(cid:79)(cid:77)(cid:77)(cid:85)(cid:78)(cid:73)(cid:84)(cid:89)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:41)(cid:78)(cid:68)(cid:73)(cid:71)(cid:69)(cid:78)(cid:79)(cid:85)(cid:83)(cid:0)(cid:48)(cid:69)(cid:79)(cid:80)(cid:76)(cid:69)(cid:83)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0) (cid:51)(cid:84)(cid:65)(cid:75)(cid:69)(cid:72)(cid:79)(cid:76)(cid:68)(cid:69)(cid:82)(cid:0)(cid:37)(cid:78)(cid:71)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:14)
The Sustainable Development Framework
was approved by the Board. Gold Fields is fully
committed to the International Council on Mining
and Metals (ICMM) and to the United Nations
Global Compact and their respective associated
principles. In light of our commitment to the
principles of the ICMM and the Global Compact,
we have reviewed the terms of reference of the
Safety, Health, Environment and Community
subcommittee of the Board. The terms of
The principle means for ensuring that the
framework
is properly
implemented within
the organisation is through integration of our
sustainable development
requirements
into
the performance management system of the
organisation. This performance management
system effectively consists of targets which
employees aim to achieve and serve to measure
employee performance, and provides guidance
for incentive and reward. These contractual
arrangements are secured through a Balanced
Score Card (BSC) which is designed around the
reference have been amended to include a
overall Gold Fields strategy which consists of
commitment to the principles of the ICMM and
three pillars:
the Global Compact as well as a commitment to
(cid:115)(cid:0) (cid:51)(cid:87)(cid:69)(cid:65)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0)(cid:79)(cid:85)(cid:82)(cid:0)(cid:65)(cid:83)(cid:83)(cid:69)(cid:84)(cid:83)(cid:27)
our own Sustainable Development Framework,
which supports the aforementioned. As a result
(cid:115)(cid:0) (cid:39)(cid:82)(cid:79)(cid:87)(cid:73)(cid:78)(cid:71)(cid:0)(cid:39)(cid:79)(cid:76)(cid:68)(cid:0)(cid:38)(cid:73)(cid:69)(cid:76)(cid:68)(cid:83)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0) (cid:51)(cid:69)(cid:67)(cid:85)(cid:82)(cid:73)(cid:78)(cid:71)(cid:0)(cid:79)(cid:85)(cid:82)(cid:0)(cid:70)(cid:85)ture.
INVITATION TO ENGAGE AND STAKEHOLDER FEEDBACK FORM
This Report aims to meet the requirement for increased transparency and accountability in corporate reporting.
We hope you find it useful and informative. We believe that it constitutes a reasonable and fair reflection of
the progress and challenges we have experienced over the past year. As always, we welcome your feedback
on the report and any of our activities. For further information and contact details, please visit our website at
www.goldfields.co.za or e-mail philip.woodhouse@goldfields.co.za.
Sustainable Development Policy
Supporting Policies
Ethics and Corporate
Governance
Human Rights
Risk Management
Health and Safety
Environment
Material Stewardship
and Supply Chain
management
Stakeholder
Engagement
Community
and Indigenous
People
Sustainable Development Peer Groups, consisting of subject matter experts
from an operational and corporate level
60
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SUSTAINABLE DEVELOPMENT
continued
Gold Fields is fully committed to the International
Council on Mining and Metals and to the United Nations
Global Compact and their respective associated
principles.
our induction programmes that target all new
employees and business partners. All employees
are required to adhere to the requirements
of the ethics policy. The Group has procured
the services of an independent hotline service
provider, to facilitate the confidential reporting of
any code transgressions.
Thus our sustainable development framework
becomes a series of values that are entrenched
throughout our strategy, from an operational
excellence point of view, to ensuring that
the growth component of our strategy is
undertaken with due regard to sound principles
of sustainable development to, our ultimate
objective of securing the future. This effectively
embraces the holistic concept of sustainable
development within all activities.
In terms of the strategy specific to sustainable
development, again we premise this on three
pillars:
(cid:115)(cid:0) (cid:35)(cid:79)(cid:78)(cid:83)(cid:79)(cid:76)(cid:73)(cid:68)(cid:65)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:66)(cid:65)(cid:83)(cid:69)(cid:76)(cid:73)(cid:78)(cid:69)(cid:27)
(cid:115)(cid:0) (cid:0)(cid:37)(cid:77)(cid:66)(cid:69)(cid:68)(cid:68)(cid:73)(cid:78)(cid:71)(cid:0) (cid:65)(cid:0) (cid:67)(cid:85)(cid:76)(cid:84)(cid:85)(cid:82)(cid:69)(cid:0) (cid:79)(cid:70)(cid:0)
(cid:83)(cid:85)(cid:83)(cid:84)(cid:65)(cid:73)(cid:78)(cid:65)(cid:66)(cid:76)(cid:69)(cid:0)
development and best practice; and
(cid:115)(cid:0) (cid:0)(cid:51)(cid:67)(cid:69)(cid:78)(cid:65)(cid:82)(cid:73)(cid:79)(cid:0) (cid:80)(cid:76)(cid:65)(cid:78)(cid:78)(cid:73)(cid:78)(cid:71)(cid:0)
(cid:84)(cid:79)(cid:87)(cid:65)(cid:82)(cid:68)(cid:0) (cid:80)(cid:82)(cid:79)(cid:65)(cid:67)(cid:84)(cid:73)(cid:86)(cid:69)(cid:76)(cid:89)(cid:0)
positioning the company.
The Board of Directors has approved the
Sustainable Development Framework which
establishes the baseline referred to above.
We are in the process of integrating our entire
Sustainable Development Framework
into
our induction processes whereby all new
employees, employees returning from leave,
and contractors, are exposed to the Framework
and are made aware of their responsibilities. The
final component of the strategy is to implement
scenario planning for sustainable development.
We are currently evaluating techniques to
satisfy this requirement. The implementation
of scenario planning systems will inform any
changes that may need to be made to the
baseline in order to position the company
appropriately. This triggers a requirement to
further refine the culture within the organisation.
Thus, we believe that sustainable development
is largely an evolutionary process within the
organisation.
The Gold Fields Sustainable Development
Framework is reflected on the previous page
and all policies with regard to the Framework
are available on our website and detailed in each
relevant section of this report.
ETHICS AND CORPORATE
GOVERNANCE
Gold Fields is committed to ethical and fair
business dealings and promotes a corporate
culture which is non-sectarian, non-political
and which is socially and environmentally
responsible.
The company endorses the principles contained
in the South African Code of Corporate
Practices and Conduct as recommended in
the second King Report (King II) and complies
with its provisions. Gold Fields shares are listed
on JSE Limited (the JSE) as a primary listing
and the company is required to comply with
the JSE Listings Requirements in respect of
King II. The company’s shares also trade in the
United States of America (USA) on the New
York Stock Exchange (NYSE) and are registered
with the United States Securities and Exchange
Commission (SEC). As such, the company
is subject to the disclosure and corporate
governance requirements of the NYSE, in so far
as these relate to foreign private issuers such as
Gold Fields. The company also has a secondary
listing on the NASDAQ Dubai Limited, the
Euronext in Brussels, and the Swiss Exchange
and is subject to the disclosure requirements of
these exchanges.
The company has implemented an ethics
policy and has developed an ethics booklet,
which summarise the salient principles of the
policy for employees informing them of their
responsibilities
regarding ethical behaviour.
The content of this ethics policy is included in
our training programmes and most notably in
No material transgression of our ethics policies
has been reported during the period under
review. In addition, no significant fines or non-
monetary sanctions for non-compliance with
legal requirements have been levelled against
the company.
Board of Directors
The company’s articles of association provide
that the company’s Board of Directors shall
consist of a minimum of four directors and
a maximum of 15 directors. The Board of
Directors currently comprises one executive
director and 12 non-executive directors.
The office of the Chairman and that of the
Chief Executive Officer (CEO) are separate
from one another and are currently filled
by an independent non-executive director,
Mr AJ Wright, and an executive director,
Mr NJ Holland, respectively.
Mr RP Menell was appointed as a non-executive
director on 8 October 2008. On 10 March
2009 Ms CA Carolus and Mr R Dañino were
appointed as non-executive directors, while
Mr AR Hill was appointed a non-executive
director on 21 August 2009.
The Gold Fields Board of Directors comprises
a majority of non-executive directors of whom
sufficient are independent of management so
that shareholder interests (including minority
interests) can be protected. Non-executive
directors do not receive any remuneration from
the company for their services as directors
other than the fees and restricted shares, with
a three year vesting period, as detailed in the
Directors’ Report on pages 112 to 123 of this
annual report.
The Board of Directors reviews the status of
its members on an ongoing basis and, based
on its deliberations, considers the current
complement of its 12 non-executive directors to
be independent, as defined in the JSE Listings
Requirements.
themselves. The Board of Directors met on nine
occasions, in person or telephonically, during
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
61
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e
c
t
i
o
n
2
:
l
i
S
u
s
t
a
n
a
b
e
D
e
v
e
o
p
m
e
n
t
l
the Board of Directors’ standing
Each of
committees is chaired by an independent, non-
executive director. Each committee is required to
evaluate its own effectiveness and performance
from time to time, with the Nominating and
Governance Committee monitoring and reporting
to the Board of Directors periodically on such
performance and effectiveness.
Each member is paid remuneration in addition
to the annual fee payable to directors, which
remuneration is recommended by a separate
subcommittee chaired by the Chief Executive
the year under review. The record of attendance
by members of the Board of Directors at such
meetings is contained in the table below.
Board of Directors committees
The Board of Directors has established a
number of standing committees composed
entirely of non-executive directors. These
committees comprise the Nominating and
Governance Committee, the Audit Committee,
the Remuneration Committee,
the Safety,
Health
and
Sustainable
Development
Officer and requires approval in advance by the
Committee, and the Capital Projects Control
shareholders at an annual general meeting of
and Review Committee all of which operate
the company.
in accordance with written terms of reference,
which were approved by the Board of Directors
and are available on the Group’s website
(www.goldfields.co.za) or from the company’s
secretarial office, on request.
2008
Director
31/07
22/08
8/10
13/11
28/01
12/02
AJ Wright
NJ Holland
K Ansah
CA Carolus4
R Dañino4
TP Goodlace³
JG Hopwood
G Marcus
RP Menell²
DN Murray
DMJ Ncube
RL Pennant-Rea
CI von Christierson
GM Wilson¹
(cid:51)
(cid:51)
(cid:51)
N/A
N/A
(cid:51)
(cid:51)
(cid:51)
N/A
(cid:51)
(cid:51)
#
#
N/A
(cid:51)
(cid:51)
(cid:51)
N/A
N/A
(cid:51)
(cid:51)
(cid:51)
N/A
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
N/A
N/A
(cid:51)
(cid:51)
(cid:51)
N/A
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
N/A
N/A
N/A
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
N/A
N/A
N/A
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
#
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
N/A
N/A
N/A
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
2009
12/03
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
N/A
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
01/05
25/06
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
N/A
#
#
(cid:51)
(cid:51)
#
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
N/A
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51) Indicates attendance # Indicates absence with apology N/A Indicates not a director at the time or not required to attend
1 Appointed 1 August 2008. 2 Appointed 8 October 2008. 3 Resigned 15 October 2008.
4 Appointed 10 March 2009.
Details of the directors and their status as
executive or non-executive appear on pages
16 and 17 of this annual report.
Board of Directors’ charter
In accordance with the Board of Directors’
charter, the directors seek to promote the
mission of the company, while upholding
sound principles of corporate governance,
the best interests of its communities, and its
shareholders. The charter, which is available on
the Gold Fields website (www.goldfields.co.za),
articulates clearly and concisely the objectives
and responsibilities of the Board of Directors.
The Board of Directors discharges these
responsibilities through a number of actions
including:
(cid:115)(cid:0) (cid:0)(cid:36)(cid:69)(cid:84)(cid:69)(cid:82)(cid:77)(cid:73)(cid:78)(cid:73)(cid:78)(cid:71)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:39)(cid:82)(cid:79)(cid:85)(cid:80)(cid:7)(cid:83)(cid:0)(cid:67)(cid:79)(cid:68)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:69)(cid:84)(cid:72)(cid:73)(cid:67)(cid:83)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)
conducting its own affairs in a professional
manner, upholding the core values of integrity,
transparency and enterprise;
(cid:115)(cid:0) (cid:0)(cid:37)(cid:86)(cid:65)(cid:76)(cid:85)(cid:65)(cid:84)(cid:73)(cid:78)(cid:71)(cid:12)(cid:0) (cid:68)(cid:69)(cid:84)(cid:69)(cid:82)(cid:77)(cid:73)(cid:78)(cid:73)(cid:78)(cid:71)(cid:0) (cid:65)(cid:78)(cid:68)(cid:0) (cid:69)(cid:78)(cid:83)(cid:85)(cid:82)(cid:73)(cid:78)(cid:71)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0)
implementation of corporate strategy and
policy;
(cid:115)(cid:0) (cid:0)(cid:36)(cid:69)(cid:84)(cid:69)(cid:82)(cid:77)(cid:73)(cid:78)(cid:73)(cid:78)(cid:71)(cid:0) (cid:67)(cid:79)(cid:77)(cid:80)(cid:69)(cid:78)(cid:83)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:12)(cid:0) (cid:68)(cid:69)(cid:86)(cid:69)(cid:76)(cid:79)(cid:80)(cid:77)(cid:69)(cid:78)(cid:84)(cid:12)(cid:0)
education and other relevant policies for the
Group’s employees; and
(cid:115)(cid:0) (cid:0)(cid:36)(cid:69)(cid:86)(cid:69)(cid:76)(cid:79)(cid:80)(cid:73)(cid:78)(cid:71)(cid:0) (cid:65)(cid:78)(cid:68)(cid:0) (cid:83)(cid:69)(cid:84)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0) (cid:68)(cid:73)(cid:83)(cid:67)(cid:76)(cid:79)(cid:83)(cid:85)(cid:82)(cid:69)(cid:0) (cid:65)(cid:78)(cid:68)(cid:0)
reporting practices,
required by
applicable laws to best serve the needs of its
shareholders.
as
Rotation of Directors
In accordance with the company’s articles of
association, one-third of the directors shall retire
from office at each annual general meeting,
with the first to retire being those appointed as
additional members of the Board of Directors
during the year, followed by the longest serving
members. Retiring directors are free to make
themselves available for re-election and may,
as such, be re-elected at the annual general
meeting at which they retire.
Board of Directors meetings and
attendance
The Board of Directors is required to meet at least
four times a year. The non-executive directors
also use this opportunity to meet amongst
62
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SUSTAINABLE DEVELOPMENT
continued
Nominating and Governance Committee
required to meet at least quarterly and to
The Audit Committee is responsible for the
The Nominating and Governance Committee
monitor and review:
is chaired by the chairman of the Group,
Mr AJ Wright.
It comprises
independent
(cid:115)(cid:0) (cid:0)(cid:52)(cid:72)(cid:69)(cid:0)(cid:69)(cid:70)(cid:70)(cid:69)(cid:67)(cid:84)(cid:73)(cid:86)(cid:69)(cid:78)(cid:69)(cid:83)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:39)(cid:82)(cid:79)(cid:85)(cid:80)(cid:7)(cid:83)(cid:0)(cid:73)(cid:78)(cid:70)(cid:79)(cid:82)(cid:77)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)
internal
systems and other systems of
oversight of the work of the independent
auditor, and the independent auditor reports
directly to the Audit Committee.
non-executive directors, namely, Messrs
control;
K Ansah, R Dañino, RL Pennant-Rea and
(cid:115)(cid:0) (cid:0)(cid:52)(cid:72)(cid:69)(cid:0) (cid:69)(cid:70)(cid:70)(cid:69)(cid:67)(cid:84)(cid:73)(cid:86)(cid:69)(cid:78)(cid:69)(cid:83)(cid:83)(cid:0) (cid:79)(cid:70)(cid:0)
(cid:84)(cid:72)(cid:69)(cid:0)
(cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:78)(cid:65)(cid:76)(cid:0) (cid:65)(cid:85)(cid:68)(cid:73)(cid:84)(cid:0)
The Board of Directors believes that the
CI von Christierson.
Its written
terms of
function;
reference require this committee, inter alia, to:
(cid:115)(cid:0) (cid:0)(cid:52)(cid:72)(cid:69)(cid:0)(cid:82)(cid:69)(cid:80)(cid:79)(cid:82)(cid:84)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:66)(cid:79)(cid:84)(cid:72)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:69)(cid:88)(cid:84)(cid:69)(cid:82)(cid:78)(cid:65)(cid:76)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:78)(cid:65)(cid:76)(cid:0)
(cid:115)(cid:0) (cid:0)(cid:36)(cid:69)(cid:86)(cid:69)(cid:76)(cid:79)(cid:80)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:65)(cid:80)(cid:80)(cid:82)(cid:79)(cid:65)(cid:67)(cid:72)(cid:0) (cid:79)(cid:70)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:39)(cid:82)(cid:79)(cid:85)(cid:80)(cid:0) (cid:84)(cid:79)(cid:0)
matters of corporate governance and make
auditors;
(cid:115)(cid:0) (cid:0)(cid:52)(cid:72)(cid:69)(cid:0) (cid:81)(cid:85)(cid:65)(cid:82)(cid:84)(cid:69)(cid:82)(cid:76)(cid:89)(cid:0) (cid:65)(cid:78)(cid:68)(cid:0) (cid:65)(cid:78)(cid:78)(cid:85)(cid:65)(cid:76)(cid:0)
(cid:82)(cid:69)(cid:80)(cid:79)(cid:82)(cid:84)(cid:83)(cid:0) (cid:65)(cid:78)(cid:68)(cid:0)
recommendations to the Board of Directors
specifically the annual financial statements;
(cid:115)(cid:0) (cid:0)(cid:52)(cid:72)(cid:69)(cid:0) (cid:65)(cid:78)(cid:78)(cid:85)(cid:65)(cid:76)(cid:0) (cid:82)(cid:69)(cid:80)(cid:79)(cid:82)(cid:84)(cid:0) (cid:79)(cid:78)(cid:0) (cid:38)(cid:79)(cid:82)(cid:77)(cid:0) (cid:18)(cid:16)(cid:13)(cid:38)(cid:0) (cid:108)(cid:76)(cid:69)(cid:68)(cid:0) (cid:87)(cid:73)(cid:84)(cid:72)(cid:0)
the United States Securities and Exchange
Commission (SEC);
(cid:115)(cid:0) (cid:0)(cid:52)(cid:72)(cid:69)(cid:0)(cid:65)(cid:67)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0)(cid:80)(cid:79)(cid:76)(cid:73)(cid:67)(cid:73)(cid:69)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:39)(cid:82)(cid:79)(cid:85)(cid:80)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:65)(cid:78)(cid:89)(cid:0)
proposed revision thereto;
(cid:115)(cid:0) (cid:0)(cid:52)(cid:72)(cid:69)(cid:0)(cid:69)(cid:88)(cid:84)(cid:69)(cid:82)(cid:78)(cid:65)(cid:76)(cid:0)(cid:65)(cid:85)(cid:68)(cid:73)(cid:84)(cid:0)(cid:108)(cid:78)(cid:68)(cid:73)(cid:78)(cid:71)(cid:83)(cid:12)(cid:0)(cid:82)(cid:69)(cid:80)(cid:79)(cid:82)(cid:84)(cid:83)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:70)(cid:69)(cid:69)(cid:83)(cid:0)
and the approval thereof; and
(cid:115)(cid:0) (cid:0)(cid:52)(cid:72)(cid:69)(cid:0) (cid:67)(cid:79)(cid:77)(cid:80)(cid:76)(cid:73)(cid:65)(cid:78)(cid:67)(cid:69)(cid:0) (cid:87)(cid:73)(cid:84)(cid:72)(cid:0) (cid:65)(cid:80)(cid:80)(cid:76)(cid:73)(cid:67)(cid:65)(cid:66)(cid:76)(cid:69)(cid:0) (cid:76)(cid:69)(cid:71)(cid:73)(cid:83)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:12)(cid:0)
requirements of regulatory authorities and the
Group’s code of ethics.
All members of the Audit Committee are
independent non-executive directors.
The
internal and external auditors have
unrestricted access to the Audit Committee, the
Audit Committee chairman and the chairman
of the Board of Directors, ensuring that their
independence is in no way impaired.
The Group internal audit function is headed by
the senior manager, internal audit. The Audit
Committee determines the purpose, authority
and responsibility of the internal audit function
in an Internal Audit Charter, which charter has
been approved by the Audit Committee. The
members of the Audit Committee collectively
possess the knowledge and experience to
oversee and assess the performance of Gold
Fields’ management and auditors, the quality of
Gold Fields’ disclosure controls, the preparation
and evaluation of Gold Fields’ financial
statements and Gold Fields’ financial reporting.
The Board of Directors also believes that the
members of the Audit Committee collectively
possess the understanding of audit committee
functions necessary to diligently execute their
responsibilities.
The Audit Committee has adopted formal,
written terms of reference that were approved
by the Board of Directors. The Audit Committee
is of the opinion that it has satisfied its
responsibilities for the past financial year in
compliance with such terms of reference.
The Audit Committee is satisfied with the
appropriateness of the CFO’s expertise and
experience. In addition, the Audit Committee
is satisfied that the external auditors are
independent of the company.
The Audit Committee met on six occasions
during the year under review. The record of
attendance by members at such meetings is
contained in the table below.
2008
2009
2
9
/
0
7
2
0
/
0
8
2
7
/
1
0
0
7
/
1
1
2
7
/
0
1
0
4
/
0
5
Audit Committee has the authority to appoint
Director
and dismiss the head of the Group internal audit
function.
The Audit Committee is required to approve
all significant non-audit
relationships with
the Group’s
independent auditor. For the
period under review, the Audit Committee
has approved, and the Group’s independent
auditor has performed non-audit services
In
for accounting advice and
consideration for rendering these services, the
Group has paid the independent auditor an
amount of R4,3 million.
taxation.
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
#
(cid:51)
(cid:51)
JG
Hopwood
RP Menell² N/A N/A N/A N/A
DMJ
Ncube
RL
Pennant-
Rea
GM Wilson¹ N/A
(cid:51) Indicates attendance # Indicates absence with apology
N/A Indicates not a director at the time or not required to
attend
#
#
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
1Appointed 1 August 2008. 2Appointed 13 November 2008.
with respect to all such matters;
(cid:115)(cid:0) (cid:0)(cid:0)(cid:41)(cid:68)(cid:69)(cid:78)(cid:84)(cid:73)(cid:70)(cid:89)(cid:0)(cid:65)(cid:0)(cid:83)(cid:85)(cid:67)(cid:67)(cid:69)(cid:83)(cid:83)(cid:79)(cid:82)(cid:0)(cid:84)(cid:79)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:67)(cid:72)(cid:65)(cid:73)(cid:82)(cid:77)(cid:65)(cid:78)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:67)(cid:72)(cid:73)(cid:69)(cid:70)(cid:0)
executive officer and make recommendations in
this regard to the Board of Directors as a whole;
(cid:115)(cid:0) (cid:0)(cid:35)(cid:79)(cid:78)(cid:83)(cid:73)(cid:68)(cid:69)(cid:82)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:77)(cid:65)(cid:78)(cid:68)(cid:65)(cid:84)(cid:69)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:34)(cid:79)(cid:65)(cid:82)(cid:68)(cid:0)(cid:79)(cid:70)(cid:0)(cid:36)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82)(cid:83)(cid:7)(cid:0)
committees, the selection and rotation of
committee members and chairmen as well
as the performance and effectiveness of each
Board of Directors’ committee on an ongoing
basis; and
(cid:115)(cid:0) (cid:0)(cid:37)(cid:86)(cid:65)(cid:76)(cid:85)(cid:65)(cid:84)(cid:69)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:69)(cid:70)(cid:70)(cid:69)(cid:67)(cid:84)(cid:73)(cid:86)(cid:69)(cid:78)(cid:69)(cid:83)(cid:83)(cid:0) (cid:79)(cid:70)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:34)(cid:79)(cid:65)(cid:82)(cid:68)(cid:0)
its committees and
of Directors and
management as a whole and report thereon
to the Board of Directors.
The Nominating and Governance Committee
met on five occasions during the year under
review. The record of attendance by members
at such meetings is contained in the table
below.
2008
Director
2
1
0
8
/
1
2
1
1
/
/
1
1
0
2
2009
0
5
0
3
/
2
9
0
4
/
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
N/A N/A N/A N/A N/A
AJ Wright
K Ansah
R Dañino¹
RL Pennant-
Rea
CI von
Christierson
(cid:51) Indicates attendance N/A Indicates not a member at
the time
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
1 Appointed 1 May 2009.
Audit Committee
The Audit Committee comprises independent
non-executive
directors,
chaired
by
Mr JG Hopwood, while other members are
Messrs RP Menell, DMJ Ncube, RL Pennant-
Rea and Mrs GM Wilson. The committee is
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
63
63
S
e
c
t
i
o
n
2
:
l
i
S
u
s
t
a
n
a
b
e
D
e
v
e
o
p
m
e
n
t
l
Remuneration Committee
The Remuneration Committee comprises
independent non-executive directors, namely,
(chairman),
von Christierson
Messrs CI
JG Hopwood, DMJ Ncube, Mrs GM Wilson
and Mr AJ Wright and is required to meet at
least twice a year. The committee, which has
adopted its own formal terms of reference, has
established and reviews, on an ongoing basis,
the Group’s remuneration philosophy, the terms
and conditions of employment of executive
directors and other executives, including a
short-term performance-linked bonus scheme
and a long-term share incentive scheme.
The terms and conditions of employment of
the executive director are contained in a written
contract of employment. The remuneration
particulars of the contract are contained on
pages 117 and 118 of this annual report, with
the Group’s maximum exposure being limited to
two and a half years’ remuneration in the event
The Group has during the year under review
placed an
increased emphasis on
the
non-financial value drivers of the business
including but not restricted to stakeholders.
The
focus
includes
socio-economic
issues such as community and individual
development, employment equity, health
and safety. As such, the SHSD Committee
plays a pivotal role in assisting the Board of
Directors in its oversight of the effectiveness
of the Group’s environmental, health and
safety programmes and keeping the Board
of Directors informed in regard to the Group’s
objectives, compliance with and maintenance
of standards in these areas. The committee
seeks also to minimise health, safety and
mining related accidents within the Group,
to ensure that the Group’s operations are in
compliance with all environmental regulations,
and has established a Group policy in respect
of HIV/Aids and other health matters. This
of such executive director’s services being
committee has adopted formal terms of
terminated as a result of a takeover or merger.
reference and is required, in terms thereof, to
meet at least twice a year.
The Remuneration Committee met on six
occasions during the year under review. The
The SHSD Committee met on seven occasions
record of attendance by members at such
during the year under review. The record of
meetings is contained in the table below.
attendance by members at such meetings is
2008
2009
contained in the table below.
Director
2
1
0
8
/
1
2
1
1
/
/
1
1
0
2
0
5
0
3
/
2
9
0
4
/
2
5
0
6
/
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
CI von
Christierson
JG
Hopwood
DMJ Ncube
(cid:51)
AJ Wright
(cid:51)
GM Wilson¹ N/A N/A N/A N/A N/A
(cid:51) Indicates attendance # Indicates absence with apology
N/A Indicates not a member at the time
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
#
#
#
(cid:51)
(cid:51)
(cid:51)
1 Appointed 1 May 2009.
2008
2009
3
1
0
7
/
2
1
0
8
/
1
2
1
1
/
/
1
1
0
2
1
9
0
3
/
2
9
0
4
/
2
4
0
6
/
Director
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51)
DN Murray
(cid:51)
K Ansah
(cid:51)
CA Carolus ² N/A N/A N/A N/A N/A N/A (cid:51)
G Marcus
(cid:51)
(cid:51)
(cid:51)
RP Menell ¹ N/A N/A N/A (cid:51)
(cid:51)
AJ Wright
(cid:51)
(cid:51)
(cid:51)
(cid:51)
(cid:51) Indicates attendance # Indicates absence with apology
NA Indicates not a member at the time
(cid:51)
(cid:51)
(cid:51)
#
#
(cid:51)
(cid:51)
(cid:51)
(cid:51)
1 Appointed 13 November 2008. 2 Appointed 1 May 2009.
in excess of R1.5 billion or US$200 million.
This committee will be reviewing such projects
from inception to completion and making
such recommendations to management as it
considers appropriate.
The committee comprises independent non-
executive directors, namely, Messrs RP Menell,
(chairman), DN Murray, AR Hill (appointed
on 21 August 2009), CI von Christierson and
Mrs GM Wilson. The committee’s first meeting
was held on Wednesday, 19 August 2009.
Executive Committee
The Gold Fields Executive Committee (Executive
Committee) is not a subcommittee of the Board
of Directors, but is primarily responsible for
implementing the Board of Directors’ mandates.
The Executive Committee meets regularly to
review Group performance and develops Group
strategy and policy proposals for consideration
by the Board of Directors.
During the year under review the Executive
Committee was reorganised and strengthened
to reflect the Group’s new regionalisation
strategy and expanding global footprint. Each
of the four regions is now headed up by an
Executive Vice President who is also a member
of the Executive Committee.
Details of the members of the Executive Committee
appear on pages 18 and 19 of this annual report.
The Executive Committee has been mandated
by the Board of Directors to assist in the
execution of the Group’s disclosure obligations.
A series of guidelines on disclosure have
been disseminated throughout the Group.
‘Disclosure’ is an agenda item at each Executive
Committee meeting and, in order to facilitate
the fulfilment by the committee of this function,
a disclosure co-ordinator has been appointed
at each operation and in respect of each core
discipline throughout the Group.
Safety,
Health
and
Sustainable
Development (SHSD) Committee
Capital Projects Control and Review
The
Safety, Health
and
Sustainable
Committee
Development Committee
(formerly known
as
the Safety, Health, Environment and
Community Committee
(SHEC)) comprises
independent non-executive directors, namely,
On 1 May 2009, the Gold Fields Board
established a subcommittee with the purpose
of satisfying the Board that Gold Fields has
used correct and efficient methodologies and
Messrs DN Murray
(chairman), K Ansah,
has adequate controls in place in respect of
RP Menell, AJ Wright and Ms CA Carolus.
new capital projects proposed by management
Each operating subsidiary of the Group has
established board of directors and management
committee structures designed to ensure that
the Group’s commitment to sound practices
and standards of corporate governance
is maintained on a Group-wide basis. The
Group’s executive director serves on the board
of directors of each operating subsidiary of the
Group.
64
64
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
SUSTAINABLE DEVELOPMENT
continued
Internal controls
The Board of Directors has established and
maintains internal controls and procedures,
which are reviewed regularly for effectiveness.
These controls and procedures are designed to
manage, rather than eliminate, the risk of failure,
and provide reasonable, but not absolute,
assurance that there is an adequate system of
internal control in place.
Internal auditors monitor the operation of
the internal control systems and report their
findings and recommendations to the Audit
Committee, the directors and management.
Action is taken to address any deficiencies as
and when they are identified. Nothing has come
to the attention of the directors to indicate that
any material breakdown in the functioning of
these controls, procedures and systems has
occurred during the year under review.
Group Code of Ethics
Directors and employees are bound to uphold
the core values of honesty, transparency
and integrity that underpin the Gold Fields
Code of Ethics. Above all, this code requires
all directors and employees to maintain the
ethical standards set by the Group, inter alia,
that its representatives conduct themselves
with integrity, in accordance with all applicable
laws and generally in a manner which is beyond
reproach. The code of ethics also articulates
the Group’s policy with regard to conflicts of
interest, confidentiality, fair dealing, and the
protection and proper use of Group assets.
The code of ethics is available on the Group’s
website (www.goldfields.co.za) and has been
communicated throughout the Group. The
code of ethics is also communicated to all new
employees.
Insider trading
The Group operates a closed period prior to
the publication of its quarterly and year end
financial results during which period employees,
directors and officers of the Group may not deal
in Gold Fields shares. This is also extended to
any period when Gold Fields is trading under a
cautionary announcement or when employees,
directors and officers are in possession of
unpublished price sensitive information. The
company secretary keeps members of the
Board of Directors and employees across the
Group informed of all such periods.
GOLD FIELDS’ PEOPLE
Central to our approach to Gold Fields’ people
is the upholding of human rights as they apply
to our activities. In this regard, the Group
has developed and implemented a human
rights policy. This policy covers numerous
commitments to human rights which include:
(cid:115)(cid:0) (cid:53)(cid:80)(cid:72)(cid:79)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:82)(cid:73)(cid:71)(cid:72)(cid:84)(cid:0)(cid:84)(cid:79)(cid:0)(cid:70)(cid:82)(cid:69)(cid:69)(cid:68)(cid:79)(cid:77)(cid:0)(cid:79)(cid:70)(cid:0)(cid:65)(cid:83)(cid:83)(cid:79)(cid:67)(cid:73)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:27)
(cid:115)(cid:0) (cid:0)(cid:53)(cid:80)(cid:72)(cid:79)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:82)(cid:73)(cid:71)(cid:72)(cid:84)(cid:0)(cid:84)(cid:79)(cid:0)(cid:78)(cid:79)(cid:84)(cid:0)(cid:66)(cid:69)(cid:0)(cid:69)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:69)(cid:68)(cid:0)(cid:65)(cid:83)(cid:0)(cid:65)(cid:0)
child;
(cid:115)(cid:0) (cid:0)(cid:53)(cid:80)(cid:72)(cid:79)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:82)(cid:73)(cid:71)(cid:72)(cid:84)(cid:0) (cid:84)(cid:79)(cid:0) (cid:78)(cid:79)(cid:84)(cid:0) (cid:66)(cid:69)(cid:0) (cid:83)(cid:85)(cid:66)(cid:74)(cid:69)(cid:67)(cid:84)(cid:69)(cid:68)(cid:0) (cid:84)(cid:79)(cid:0)
forced or compulsory labour;
(cid:115)(cid:0) (cid:53)(cid:80)(cid:72)(cid:79)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:82)(cid:73)(cid:71)(cid:72)(cid:84)(cid:0)(cid:84)(cid:79)(cid:0)(cid:70)(cid:65)(cid:73)(cid:82)(cid:0)(cid:84)(cid:82)(cid:69)(cid:65)(cid:84)(cid:77)(cid:69)(cid:78)(cid:84)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
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choice.
A copy of our human rights policy statement is
available on our website: www.goldfields.co.za.
No material reports of transgressions of our
human rights policy have been reported during
the period under review.
The Board of Directors is committed to ensuring
the consistent application of the code of ethics
and is assisted in its responsibility for overseeing
compliance therewith by the Audit Committee.
Employee numbers as at 30 June 2009:
Total employees
(excluding contractors)
Contractors
49,715
16,109
Gold Fields has contracted the services of
‘Tip-offs Anonymous’, an independent hotline
service provider, to facilitate the confidential
reporting of code violations, fraud and other
found
inappropriate behaviour. Employees
guilty of ethical breaches are disciplined in
accordance with the Group’s disciplinary code
and, should the breach also be a criminal act,
it is the Group’s policy to pursue prosecution of
the employee concerned.
Gold Fields has accelerated various strategic
imperatives over the last two years and it is
fully understood by the Board of Directors and
the Executive Committee that quality people
will be the foundation for the success of these
initiatives. We are continually striving for an
environment that encourages innovation, and
accepts
transformation and development,
which will enable our ideals and aspirations.
Human rights
Gold Fields has started to implement the
Group’s Human Rights Policy and practice
guides across all operations, with a view to
ensuring compliance and good governance.
South Africa Region
Skills attraction and retention remain a key
focus in the South Africa Region.
An increased recruitment drive was launched
during November 2008 in an effort to fill vacant
positions in the South Africa Region. The most
critical positions identified include mechanical
and electrical engineers,
rock mechanic
engineers and Mineral Resources managers.
Employee relations
An employee relations summit, which took
place in December 2008, was attended by
representatives from Gold Fields and the three
recognised unions within Gold Fields. The
engagement agenda has now shifted towards
safe production management and productivity
improvement initiatives.
Furthermore, visible commitment by Gold
Fields’ senior executives and senior managers
to directly communicate with senior leaders of
trade unions at national level has been expressly
welcomed and encouraged by the trade union
leaders.
Performance management
The Group performance management system
is a key business goal in areas such as health
and safety management and productivity
improvement. The BSC methodology is now
fully embraced as a Group-wide process
for driving performance management and is
gaining momentum. Performance ratings from
the individual BSCs are utilised in a number of
areas such as remuneration, development and
talent planning.
to optimise
reward philosophy, which
Remuneration and benefits
its
Gold Fields continued
is an all
total
encompassing philosophy incorporating salary
remuneration, market trends as well as short-
and long-term incentives. It also focuses on
employee well-being with a special initiative
called 24-hours in the Life of a Gold Fields
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Employee which addresses accommodation
and living conditions, nutrition, health care, safe
production, sport and recreation, and learning.
It is aimed at attracting and retaining motivated
high calibre people aligned with the interests of
the business.
1 March 2009. The rules of the AFRF are similar
to those of the GFLCRF except for the additional
investment portfolios which are now available
within the AFRF. Because of the nature of the
scheme, (i.e. umbrella fund), the administration
costs have been reduced and the risks for
trustees have been eliminated.
Human Resources is set to play a critical role
in bringing about the necessary conditions
to progress from a culture of dependence to
one of interdependence; rooted in beliefs and
values that create the climate and context
required for safe production behaviour by all
employees.
Gold Fields offers a choice of medical aids to
its employees, one being an in-house medical
aid with highly competitive rates. Gold Fields
is actively involved with industry-wide task
teams regarding the medical aid and retirement
fund industry and infl uences the agenda in
this regard.
Safe Production Management
As a pivotal driver for transformation and
change in Gold Fields, human resources has
become a strategic partner to the business
in ensuring the successful implementation of
the Safe Production Management programme
(SPM). The architecture of the SPM is founded
on fi ve pillars. The fi rst two pillars, namely
(1) Programmes
for Safe Production and
(2) Technical, Engineering and Mine Design look
at traditional approaches to health and safety
management, while the remaining three pillars
focus directly on people driven outcomes:
(3) Cultures, Values and Beliefs; (4) Organisational
Structuring; and (5) Performance Leadership.
Transformation
With regard to the representation of the
Historically Disadvantaged South Africans in
management (HDSAs), the following progress
had been made in comparison to F2008:
HDSA:
F2009 - (F2009 SLP
Target: 40 per cent)
39 per cent
Women
in Mining
(WIM):
F2009 - (F2009 SLP
Target: 5 per cent)
6.2 per cent
F2008
36 per
cent
F2008
5.8 per
cent
Although the employment equity progress
was somewhat hindered by the economic
challenges faced by the operations in F2009,
the operations remain on track to meet the
40 per cent HDSA target before the end of the
2009 calendar year.
This philosophy enhances both employee
performance excellence and a culture of
meritocracy founded on the principle of extra-
ordinary rewards for extraordinary performance,
providing for signifi cant differentiation between
high, average and low performers.
in
in
Furthermore, we continued to maintain our
labour market by
competitiveness
the
regularly participating
industry market
surveys, not only to benchmark remuneration
practices but also to keep abreast of industry
movements regarding employee benefi ts and
non-fi nancial recognition programmes. Gold
Fields is also currently actively involved in an
industry task team working on formulating
industry standards for remuneration practices
based on labour market dynamics.
We have also implemented a true total cost
to company structuring for the management
group of employees and also for the “Offi cials”
bargaining unit. This structuring is known as the
Gross Remuneration Package (GRP) structuring
approach. Currently a total of 76 per cent of
offi cials have voluntarily selected the GRP
structuring and all employees on Paterson
grades D, E, and F-band positions are on the
same structuring.
The share plan has been enhanced with
appropriate changes to the rules. The Senior
Executive Retention Bonus Scheme has been
discontinued during the course of the year. It
was felt that the initial intention for establishing
the scheme was not realised and therefore to
continue with the scheme was not in the best
interests of the business.
The Gold Fields Limited Corporate Retirement
Fund (GFLCRF) has been closed, and two new
employer funds (one for South African operations
and one
international
for corporate and
operational staff based in South Africa) have
been registered within the Alexander Forbes
umbrella fund – Alexander Forbes Retirement
(AFRF), effective
Fund
(Provident Fund) –
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continued
The Gold Fields Business and Leadership
Academy (the Academy)
International regions – Human Resources
Staff numbers as at 30 June 2009:
The Gold Fields Business and Leadership
Academy continues to spearhead the provision
of a full range of human resource development
services needed within Gold Fields, to ensure
the organisation remains adequately staffed to
meet its operational requirements.
Total employees
(excluding contractors)
Contractors
Australia
415
999
Ghana
2,436
Peru
350
Explor-
ation
209
3,208
1,486
22
The Academy has been operational since
F2006 and has recently undergone a review
of its service delivery and business model,
thereby ensuring it remains fully aligned with
the changing demands faced within Gold
programme in the South Africa Region. Learning
Talent management
will be based on integrated and adult learning
The Discipline Development Committees
methodologies in association with best in fi eld
(DDCs) are now well established, with a
partners. All learning gained from the design,
key focus on managing the talent in each
development and pilot phase will be shared
discipline. The success of these bodies lies
Fields, particularly in light of the current global
throughout the Group.
economic environment.
in the partnership between the management
from the Regional offi ce and the operations.
The primary objective of the Academy’s service
to the Group is undergoing continuous change,
evolving towards performance improvement
facilitation, in addition to its traditional role as
a training provider. This means that a greater
focus is now being placed on the design and
development of
learning solutions, which
Signifi cant focus remained in the areas of
The annual Management Review
(Talent
bursaries (where 124 have been awarded),
Review) outcomes form the basis of talent,
learnerships (378) and post graduate trainees
succession
and
development
planning.
(40), closely governed by
the
relevant
Execution of development initiatives in the form
discipline development committees through
of skills audits, skills analysis and individual
our management review process. One of the
development plans (IDPs) are done through
important events within the mining learnership
the Academy and the on-mine education and
provisions area was the successful and smooth
training campuses.
should empower employees with the increased
transition from the traditional blasting certifi cate
knowledge and ability needed within Gold Fields
programme to the new era Mining Qualifi cation
to achieve its commitment to safe production.
Authority certifi cation programme.
Key delivery areas for the Academy in F2009
included:
(i) providing
increased support
to
the South African mining operations
in respect of their obligations under the
relevant sections of the Social and Labour
Plans submitted to Government; (ii) special
interventions aligned with the roll-out of Gold
Fields’ Safe Production Rules, which will drive
ongoing safety performance
improvement.
Human resource development, as an integrated
process, has gained considerable momentum
with the launch of Gold Fields’ Leadership
Development Programme. Our
leadership
development, together with performance and
talent management, are the key drivers of all
people management initiatives. A comprehensive
approach
to
leadership development was
implemented based on a well researched and
designed Gold Fields Leadership Development
model and competency
framework. The
Leadership model and framework was utilised
in selecting a group of six full time students
and eleven part time students as part of a pilot
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24 Hours in The Life of a Gold Fields
Employee
During
the year a comprehensive new
programme was launched to facilitate the
total well-being of all employees in the South
Africa Region. This programme is designed
to address all of the needs of an employee
throughout the 24-hour cycle of his or her day.
Based on the Total Well-being philosophy, the
programme includes interventions in the fields of
accommodation and living conditions, nutrition,
healthcare, sports and recreation, safety, and
education and training, as well as the spiritual
needs of employees. In each of the focus
areas there are comprehensive plans in place
to address the need for appropriate facilities
and infrastructure as well as management
processes to ensure delivery against the needs
of employees. The programme is in the process
of being adopted for each of the international
regions where the roll-out will be completed
during F2010.
for
focal point
International Regions
International human resource
development
The
the human resource
development effort in F2009 was the health,
safety and environmental training required
to comply with the site specific safety and
environmental systems, as well as to support
the “If we cannot mine safely, we will not mine”
initiative launched during the year.
increased
focus on human
An
resource
development necessitated the appointment
of a dedicated training and development
manager to establish a centralised training and
development capacity for all of the international
regions.
and
training
This newly established role is expected to
provide leadership in assessing and influencing
international
development
initiatives. In addition, a review of the training
and development effort and direction within
Gold Fields has also started. These reviews
should as a whole result in cross pollination
and application of the identified best practices
across all regions.
Human Resources International Best
Practice Framework
The growth of Gold Fields internationally has
necessitated the alignment of human resources
best practices across the regions in which we
are being conducted to assess internal pipeline
operate. This has resulted in the development
succession against external market influences.
and implementation of the Human Resources
International Best Practice Framework across
Leadership development
the employee work cycle. This includes policies,
Leadership development is seen as the core
procedures and clear cut definitions of roles
human resources theme that supports the Gold
and responsibilities of all stakeholders in the
Fields strategy. A comprehensive programme
management of people.
International deployment
The globalisation of our workplace has resulted
in the need to revisit deployment practices.
Policies, guidelines and a comprehensive
remuneration model have been developed to
facilitate the seamless movement of people to
suit business requirements and the transfer of
scarce and critical skills.
Human Resources SAP (Information
Management System)
The standardisation of human
resources
information management was prioritised as a
strategic initiative across the Group. SAP was
chosen as the technology enabler to achieve
this. To date SAP HR (Phase 1) has been
successfully implemented in Peru, followed
by an accelerated implementation in Ghana
and Australia. The following modules were
part of the phase 1 implementation: Personnel
Administration, Organisational Management,
Time Recording and Administration, Payroll
and Recruitment. The overall intent and focus
is standardisation of information management
and reporting. This initiative will be implemented
for the exploration unit in F2010.
Labour management
In support of delivering operational excellence,
renewed focus was placed on labour planning
as a critical component of ensuring delivery of
the overall strategy. The areas of focus included
organisational design, labour cost management
has been developed to further the growth of
identified individuals that are earmarked as
leaders of the future. Whilst the programme
is already being implemented in the South
Africa Region, it is being customised for the
International Regions.
Climate survey
A climate survey was conducted in Ghana and
Australia to explore the relationships between
organisational commitment, productivity and
underlying mental models that inform safety
based behaviour, and also to understand the
underlying assumptions of
individuals,
the
various departments, and contractor groups.
The information obtained from the survey
assisted each operation to develop interventions
to address their specific needs at individual,
group and organisational level. Damang mine
was subsequently attributed the award of the
Chairman’s safety shield as a direct outcome of
this intervention.
Australasia Region
The global financial crisis has had a major impact
on the availability of labour in the Australian
mining and resources sector. Numerous large
projects have been deferred and several
operating mines and processing facilities in
the industry have been shut down, resulting in
more than 13,000 job losses. The challenges
of securing suitably skilled and experienced
labour that existed only a few months ago has
decreased and unplanned labour turnover has
been significantly reduced. All of the Australian
operations are in the process of securing the
(as a percentage of operating costs etc), and
necessary people with the skills and experience
labour trends (turnover and retention).
required to meet their operational needs.
As part of securing our future and to ensure
While the challenges associated with sourcing
that we have depth and breadth of skills across
labour have eased, retaining quality staff
the business pipeline, succession planning at
remains a high priority. In line with our strategy
management and specialist levels has been
of ‘Growing Our People’, additional resources
elevated as a critical priority. To measure and
have been added to the human resources team
monitor progress against plan, annual reviews
to ensure appropriate training and development
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SUSTAINABLE DEVELOPMENT
continued
Number of expats employed in Ghana expressed as a percentage of total permanent workforce:
Total permanent employees
Company
Total
Nationals
Tarkwa
Expats
Total
% Nationals
Damang
Expats
Gold Fields Ghana
Total
% Nationals
Expats
1,873
45
2.4
410
21
5.1
2,283
66
%
2.9
strategies are adopted and used effectively to
further engage with our staff, providing them
existing employment relationship to continue
for a further five years.
with skills and career growth opportunities.
Promotion from within remains the key goal for
filling the more senior vacancies. Employment
and associated benefits are regularly monitored
and benchmarked against industry surveys to
ensure our total remuneration packages remain
competitive.
In line with the Group Initiative, 24 Hours in the
Life of a Gold Fields Employee, pioneered in the
South Africa Region, and in recognition of the
need for work-life balance, revised hours of work
and rosters have been introduced into some
sections of the operations. Improvements to
village accommodation and associated facilities
have also been undertaken at Kambalda and
Leinster. The recently completed upgrade of
the Kambalda airport has reduced the travelling
time for employees and visitors to St Ives.
Initiatives focusing on the health and well-being
of staff beyond the workplace have continued
to be well accepted.
The Australian government introduced new
industrial relations legislation effective from
1 July 2009. The new legislation, in part,
abolishes
the concept of an
individual
employment agreement between an employer
and an employee, and it also introduces
opportunities for third party intervention in the
management of staff.
The Australian operations have not lost any
work time due to industrial action since being
acquired by Gold Fields in 2001. This record
can be attributed to management’s ability to
deal directly with staff on all employment and
related matters without outside intervention.
In order to retain this ability and to avoid some
of the negative aspects of the new legislation,
an Employee Collective Agreement has been
established and endorsed by staff at each
location. These agreements will enable the
West Africa Region
Skills development, attraction and
retention
Skills development, attraction and retention
in Ghana remained a major challenge. The
focus of training at Tarkwa and Damang has
remained on developing employees to their
full potential to achieve operational excellence.
Future managers and leaders are identified with
the view to develop them based on individually
identified and measured improvement areas.
These individual development plans are linked
to career paths and succession plans resulting
in appropriate promotional routes. Special
attention is given to the principle of promoting
from within the company.
its
A total of 90 students who have completed
their studies and are undergoing their national
service have been accommodated on our
operations. During the national service period
these individuals are exposed to the world
of work and
required competencies.
The organisation also reaps the benefits by
assessing and attracting the best candidates
for permanent employment. The year has
seen the introduction of a tertiary bursary
scheme for the children of employees, thus
addressing future critical skills needs whilst
retaining existing employees. During the year
an average of 3.7 per cent of available working
hours was spent in a training environment by
our employees.
total
remuneration packages
are
Our
acknowledged as attractive, fair and highly
competitive within Ghana.
Other initiatives put in place to support retention
of skills include the introduction of a car loan
scheme for official rank employees, where a
certain portion of the interest is subsidised
by the company, as well as the upgrade of
accommodation on the Tarkwa mine site.
the
Employment equity
replacement of expatriate
In Ghana
employees with competent national employees
is a key focus area. The key to achieve this
goal is through training and development and
knowledge transfer. Strategies are in place to
identify, develop and accelerate high potential
national employees to fill positions traditionally
occupied by expatriate employees.
Employee relations
Employees of Gold Fields Ghana enjoy freedom
of association and expression with the result that
two unions affiliated to the Ghana Mineworkers
Union (GMWU) represent employees.
A Collective Bargaining Agreement for the
officials category of employees was concluded
during August 2008. Collective Bargaining
Agreements are negotiated every three years.
Negotiations
the Collective Bargaining
Agreement for the staff category of employees
are ongoing.
for
In order to promote sound relations and a
sense of goodwill the following initiatives were
undertaken during the year:
to exercise
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employees
their democratic
rights. Appropriate arrangements were made
during the December 2008 national elections
to enable employees to participate in voting
by arranging for polling booths to be placed
on company property;
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introduced to improve morale and inter-
departmental relations;
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in a corporate climate survey to establish
the degree of employee engagement and
organisational shortcomings. Action plans
were established to address these;
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established to consider appropriate actions
required to ensure balanced mid shift meals;
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conditions, air conditioned buses were
introduced on the bus routes to and from
work; and
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improved and expanded to provide better
opportunities to employees to maintain a
balanced and healthy lifestyle.
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The aim is to achieve a fuller understanding of
the reward/risk balance and seeks to reduce
the likelihood and consequences of adverse
effects to acceptable levels and to achieve
continual improvement in our management of
risk, thereby enhancing the degree of certainty
forefront during F2009. This campaign assisted
in contributing to a 55 per cent reduction in
fatalities and a 30 per cent improvement in
serious injuries this year. Behaviour based
safety interventions on all the operations are
ongoing and an area of priority.
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South America Region
Cerro Corona mine in Peru employs a total
of 1,836 people, consisting of 350 Gold
Fields employees and the balance employed
by various contractors. The single largest
contractor employer is Minera San Martin,
which employs some 376 people. Minera San
Martin carries out all mining activities under the
direction of the Gold Fields mining and geology
department. All mine planning, excavation,
plant deliveries, and construction activities
are directly managed by Gold Fields. Other
contractors include camp administration and
catering, security, and laboratory operations.
and
administration,
In general all plant/metallurgical, environmental,
accounting
human
resources and community relations activities
are executed by Gold Fields personnel. Most of
the positions within the organisational structure
have been filled.
Gold Fields has a commitment to the local
communities
to employ as many people
as possible from the area, to the degree
practicable. This commitment also applies to
our contractors.
In the South America Region the approach to
employee well-being is guided by the Group-
wide philosophy of Total Well-being. Employees
benefit from a wide range of employee specific
as well as community-wide well-being initiatives
which are discussed in more detail on page 73.
internal
regulations, and
The workforce at Cerro Corona is not unionised.
Industrial relations are managed through claim
policies,
through
procedures provided for in Peruvian legislation.
Labour relations at Cerro Corona are good
and during the year we have experienced no
interruptions to production due to labour issues.
in achieving our objectives.
The new Internet web based Cura electronic
risk management software solution was
implemented across Gold Fields during the
latter part of 2008 and was fully functional by
early 2009, with the exception of Cerro Corona
where connectivity problems were previously
experienced.
Risk registers from all the operations and service
divisions have been analysed in the new format.
An auditing function was added to the existing
software in order to conduct ongoing internal
assurances that mitigating strategies for risks
are receiving the required attention. The audits
are conducted by an internal controller on each
operation.
The Top 10 risks were extracted directly from
the new electronic software and presented for
each operation and service division during the
Executive Committee strategic management
planning and review for F2010.
During F2009 a number of new risks were
identified and included in the Group risk register
for consideration by Gold Fields’ Executive
Committee and the Audit Committee. These
new risks relate primarily to:
(cid:115)(cid:0) (cid:0)(cid:44)(cid:69)(cid:65)(cid:68)(cid:69)(cid:82)(cid:83)(cid:72)(cid:73)(cid:80)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:77)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:67)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69)(cid:83)(cid:0)(cid:87)(cid:73)(cid:84)(cid:72)(cid:73)(cid:78)(cid:0)
Gold Fields; and
(cid:115)(cid:0) (cid:0)(cid:51)(cid:73)(cid:71)(cid:78)(cid:73)(cid:108)(cid:67)(cid:65)(cid:78)(cid:84)(cid:0) (cid:67)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69)(cid:83)(cid:0)
(cid:82)(cid:73)(cid:83)(cid:75)(cid:0)
landscape such as the credit crisis and the
(cid:84)(cid:72)(cid:69)(cid:0) (cid:71)(cid:76)(cid:79)(cid:66)(cid:65)(cid:76)(cid:0)
(cid:73)(cid:78)(cid:0)
In addition to the Gold Fields Code of Ethics, an
Ethics Policy that is fully compliant with Peruvian
regulations, Sarbanes-Oxley and international
labour conventions, has been adopted.
RISK MANAGEMENT
Risk management policy
Gold Fields strives to manage risk effectively
in order to protect the company’s assets,
stakeholders, environment and
reputation
and to ensure achievement of the business
objectives.
commodity price downturn.
The six major areas reviewed in terms of the risk
management policy are outlined below:
1. Health and safety
Safety always comes first and is the first item
on the agenda at all meetings. Gold Fields has
significantly improved its safety performance
during the past year. The slogan, “If we cannot
mine safely, we will not mine” has been at the
Each operation in the South Africa Region is
implementing a comprehensive strategy to
ensure compliance to the 2013 milestones for
health and safety which were put in place by
the Mine Health and Safety Council (MHSC).
Progress towards the achievement of safety
and occupational hygiene targets is monitored
with report back to senior management on a
weekly basis. More recently a project called 4M
was introduced in the South Africa Region to
formally monitor, by way of monthly meetings
and report back, the progress towards the
achievement of the MHSC milestones.
2. Financial
Please refer to the financial statements for a
detailed report on each financial risk exposure.
The risks remain the same as last year, however
the intensity has increased in respect of the
action that the Group has taken in an attempt
to further mitigate the risk.
Various financial and operational cost cutting
initiatives and projects are in place, referred
to as Projects 1M to 3M. Project 1M relates
to the achievement of an additional one
metre of face advance on stoping panels.
Project 2M relates to the
implementation
of new mining and engineering technology.
A new department has been established in
the South Africa Region to direct and guide
the operations in the implementation of new
technology. Project 3M relates to a saving
initiative in surface utilities such as power, air and
water. Operations in the South Africa Region
are already geared towards operating at 90 per
cent power availability. Further improvements
to cut power usage and costs are included in
a Group-wide power conservation strategy,
which is monitored through the 3M project.
The installation of three additional emergency
power generation plants at the West Wits mines
at a total cost of R160 million is complete.
70
70
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SUSTAINABLE DEVELOPMENT
continued
The Group initiated a project to implement a
capital management software solution to assist
in the management of future projects. Prism,
MS Projects and SAP have been selected as
the software solution packages. This software
is in the process of being implemented at South
Deep. The software solution together with good
management principles will assist in ensuring
that the project is completed on time and within
budget.
3. Human resources
The competition for scarce human resources
amongst mining companies has abated slightly
since the onset of the global credit crisis and
the subsequent slowdown in the commodity
sector. Despite this Gold Fields still regards
the retention of skills as a major risk. Retaining
quality, motivated and experienced staff is a
huge opportunity for Gold Fields to excel as one
of the leading gold producers in the world. Gold
Fields strives to keep abreast of the latest best
practices in terms of remuneration and retention
bonuses to retain its valued and experienced
staff.
The expansion and growth policy of Gold
Fields will compound the problem and the
Group’s ability to staff up. During the year the
regionalisation strategy was implemented and
the necessary management structures were
put in place.
4. Political and social
As ore bodies bind mining operations physically
to the location, the sector is exposed to
unexpected changes in national regulatory
requirements, such as the tax regime, the
terms of royalty agreements, as well as levy
and licence conditions. Such uncertainties can
have a material effect on overall profitability
and influence investment decisions in certain
regions where there is political volatility, a
divisive electoral process or a drift towards
undemocratic rule. In addition, there are local,
national and international campaigns against
mining activities and specific forms of mining,
all of which have the potential to influence
public perceptions of the industry. These could
include demands from labour and other social
demands. Gold Fields remains particularly
conscious of these dynamics and continues to
develop relationships and mutually beneficial
the
partnerships with all levels of government and
non-governmental stakeholders in each country
implementation
of operation. Through
of
the AA1000 stakeholder engagement
system, community support programmes
and its membership in various industry bodies
and
lobbying at national and
international level, the Group further seeks to
ensure stakeholder inclusivity and manage
stakeholder
increased
regulator understanding.
expectations
transparent
and
In addition, the Group’s South African operations
are subject to the mining charter and scorecard
which seeks to:
(cid:115)(cid:0)(cid:0)(cid:0)(cid:48)(cid:82)(cid:79)(cid:77)(cid:79)(cid:84)(cid:69)(cid:0) (cid:69)(cid:81)(cid:85)(cid:73)(cid:84)(cid:65)(cid:66)(cid:76)(cid:69)(cid:0) (cid:65)(cid:67)(cid:67)(cid:69)(cid:83)(cid:83)(cid:0) (cid:84)(cid:79)(cid:0) (cid:51)(cid:79)(cid:85)(cid:84)(cid:72)(cid:0) (cid:33)(cid:70)(cid:82)(cid:73)(cid:67)(cid:65)(cid:7)(cid:83)(cid:0)
Mineral Resources for all people in South
Africa;
(cid:115)(cid:0)(cid:0)(cid:0)(cid:37)(cid:88)(cid:80)(cid:65)(cid:78)(cid:68)(cid:0)
(cid:79)(cid:80)(cid:80)(cid:79)(cid:82)(cid:84)(cid:85)(cid:78)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83)(cid:0)
Disadvantaged South Africans
(cid:70)(cid:79)(cid:82)(cid:0) (cid:40)(cid:73)(cid:83)(cid:84)(cid:79)(cid:82)(cid:73)(cid:67)(cid:65)(cid:76)(cid:76)(cid:89)(cid:0)
(HDSAs),
including women, to enter the mining and
minerals industry and to benefit from the
for Gold Fields
to achieve compliance.
Having completed the audit process and
received a multitude of recommendations for
improvements, the physical work started early
in 2008. This involved a substantial capital
investment. The work involved construction
changes at cyanide offloading areas and the
re-organisation and re-routing of pipelines at
all the gold plants in the Group. Accompanying
procedures and standards were also reviewed
in order to comply with the new Code.
This effort has resulted in Gold Fields’ operations
achieving either accreditation, or substantial
compliances to the Code during F2009, the
detail of which is included on page 81.
The unpredictable consequence of global
warming was included in the Gold Fields risk
register during this year. Mitigating strategies
have been initiated as well as the development
extraction and processing of the country’s
of a comprehensive carbon strategy. More
resources;
information on energy and climate is included
(cid:115)(cid:0)(cid:0)(cid:0)(cid:53)(cid:84)(cid:73)(cid:76)(cid:73)(cid:83)(cid:69)(cid:0)
(cid:84)(cid:72)(cid:69)(cid:0) (cid:69)(cid:88)(cid:73)(cid:83)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0) (cid:83)(cid:75)(cid:73)(cid:76)(cid:76)(cid:83)(cid:0) (cid:66)(cid:65)(cid:83)(cid:69)(cid:0)
(cid:70)(cid:79)(cid:82)(cid:0)
(cid:84)(cid:72)(cid:69)(cid:0)
under the environmental section on page 78.
empowerment of HDSAs;
(cid:115)(cid:0)(cid:0)(cid:0)(cid:37)(cid:88)(cid:80)(cid:65)(cid:78)(cid:68)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:83)(cid:75)(cid:73)(cid:76)(cid:76)(cid:83)(cid:0)(cid:66)(cid:65)(cid:83)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:40)(cid:36)(cid:51)(cid:33)(cid:83)(cid:0)(cid:73)(cid:78)(cid:0)(cid:79)(cid:82)(cid:68)(cid:69)(cid:82)(cid:0)(cid:84)(cid:79)(cid:0)
6. Risk finance
serve the community;
The Group’s insurance programme has been
(cid:115)(cid:0)(cid:0)(cid:0)(cid:48)(cid:82)(cid:79)(cid:77)(cid:79)(cid:84)(cid:69)(cid:0) (cid:69)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0) (cid:65)(cid:78)(cid:68)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:83)(cid:79)(cid:67)(cid:73)(cid:65)(cid:76)(cid:0) (cid:65)(cid:78)(cid:68)(cid:0)
economic welfare of mining communities and
successfully renewed for F2010. Gold Fields
continues to insure on a standing charges only
areas supplying mining labour; and
(fixed cost) basis of business interruption cover.
(cid:115)(cid:0)(cid:0)(cid:0)(cid:48)(cid:82)(cid:79)(cid:77)(cid:79)(cid:84)(cid:69)(cid:0) (cid:66)(cid:69)(cid:78)(cid:69)(cid:108)(cid:67)(cid:73)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0) (cid:79)(cid:70)(cid:0) (cid:51)(cid:79)(cid:85)(cid:84)(cid:72)(cid:0) (cid:33)(cid:70)(cid:82)(cid:73)(cid:67)(cid:65)(cid:7)(cid:83)(cid:0)
mineral commodities beyond mining and
processing,
including
the production of
consumer goods.
While Gold Fields believes that it has made,
and continues to make good progress towards
meeting the Mining Charter requirements, any
regulatory changes to these, or failure to meet
existing targets, as well as the rise of unrealistic
social, political and economic demands being
placed on the South African mining sector in
general, could adversely affect the Group’s
earnings, assets and cash flow.
Globally the economic meltdown had a negative
effect on the international insurance market.
Insurance capacity for mining risks has shrunk
and a few underwriters have to withdraw
from the mining market. Huge losses in their
investment income portfolios and a number of
catastrophic events during the past two years,
forced insurers to increase their insurance rates.
Despite this, due to sound risk management,
the premiums
remained similar and
the
underlying deductible structure was unchanged
from F2009.
5. Environmental
During 2008, a large amount of work was
done to comply with the requirements of the
International Cyanide Management Code.
Initially third party consultants were engaged to
direct the process and make recommendations
HEALTH AND SAFETY
Safety
On 7 May 2008, Nick Holland, the Chief
Executive Officer of Gold Fields, made the
statement “If we cannot mine safely, we will not
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
71
71
S
e
c
t
i
o
n
2
:
l
i
S
u
s
t
a
n
a
b
e
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e
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e
o
p
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e
n
t
l
At the international operations, the FIFR for the
year remains at zero incidents per million man
hours worked. LDIFR decreased from 0.63 in
F2008 to 0.33 per million man hours worked in
F2009. The SIFR has decreased from 2.72 for
F2008 to 2.42 per million man hours worked
in F2009.
The improvements can be partly attributed to an
increase in hazard reporting across all sites and
changes in behaviour, resulting in a decrease in
serious incidents for all operations.
A signifi cant initiative embarked upon during
the year was the development of the Safe
Production Rules for Gold Fields. These rules
were developed through a comprehensive
analysis of historical serious incidences. The
Safe Production Rules seek to reinforce the
Gold Fields Health and Safety Policy and to
pursue the objective of zero harm. All Gold
Fields employees, business partners and
stakeholders have a duty to ensure that the
Operations
Driefontein
Kloof
Beatrix
South Deep
South African Operations
Ghana
Australia
Peru
International Operations
Fatality Free Injury Rate
F2009
No.
7
10
4
0
21
0
0
0
0
Rate
0.16
0.23
0.13
0
0.16
0
0
0
0
F2008
No.
12
15
4
12
43
3
0
1
4
Group
21
0.13
47
Serious Injury
Frequency Rate
F2009
F2008
Lost Day Injury
Frequency Rate
F2009
F2008
3.02
3.31
3.81
2.08
3.22
0.88
0.94
1.41
2.42
2.82
4.45
6.96
2.89
5.25
4.77
0.99
1.39
1.68
2.72
4.03
4.90
6.03
5.19
5.26
5.38
0.31
0
0.25
0.33
4.35
7.02
11.05
3.90
16.81
8.85
0.38
0.26
0.96
0.63
7.57
Rate
0.26
0.33
0.13
0.75
0.32
0.14
0
0.10
0.12
0.29
mine.” This iconic statement has translated into
SIFR improved from 4.03 to 2.82 per million
a vast improvement in safety performance as
refl ected above.
man hours worked. The LDIFR decreased from
7.57 per million man hours worked in F2008, to
4.35 per million man hours worked in F2009.
This represents an improvement of 30 per cent
and 43 per cent respectively.
This signalled a watershed in the Gold Fields
approach to safety and was the precursor
to a far reaching suite of interventions which,
collectively, have resulted in a very signifi cant
improvement in the Group’s safety performance
during F2009.
The Fatal Injury Frequency Rate (FIFR) for
improved by 55 per cent to
the Group
0.13 per million man hours worked, compared
In the South Africa Region, the FIFR for F2009
Safe Production Rules are constantly applied
was 0.16, as opposed to the 0.32 recorded
and remain an integral part of work practices
during F2008. One million fatality free shifts
and processes. The statement “If we cannot
were recorded at Kloof, South Deep and Beatrix
mine safely, we will not mine”, translates into:
and two million fatality free shifts at Driefontein.
(cid:115)(cid:0) (cid:51)(cid:65)(cid:70)(cid:69)(cid:84)(cid:89)(cid:0)(cid:73)(cid:83)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:78)(cid:85)(cid:77)(cid:66)(cid:69)(cid:82)(cid:0)(cid:79)(cid:78)(cid:69)(cid:0)(cid:80)(cid:82)(cid:73)(cid:79)(cid:82)(cid:73)(cid:84)(cid:89)(cid:27)
Other safety statistics continue with a positive
(cid:115)(cid:0) (cid:0)(cid:37)(cid:86)(cid:69)(cid:82)(cid:89)(cid:0) (cid:69)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:69)(cid:69)(cid:0) (cid:72)(cid:65)(cid:83)(cid:0)
(cid:82)(cid:73)(cid:71)(cid:72)(cid:84)(cid:0) (cid:65)(cid:78)(cid:68)(cid:0)
responsibility to understand the risks inherent
(cid:84)(cid:72)(cid:69)(cid:0)
to 0.29 during F2008. Across the board, we
downward trend and an overall improvement
have also seen improvements with regard to
was observed in the SIFR from 4.77 to 3.22 per
in the task to be performed;
the Serious Injury Frequency Rates (SIFR) and
million man hours worked and LDIFR from 8.85
Lost Day Injury Frequency Rates (LDIFR). The
to 5.38 per million man hours worked.
(cid:115)(cid:0) (cid:0)(cid:37)(cid:86)(cid:69)(cid:82)(cid:89)(cid:0) (cid:69)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:69)(cid:69)(cid:0) (cid:72)(cid:65)(cid:83)(cid:0)
(cid:82)(cid:73)(cid:71)(cid:72)(cid:84)(cid:0) (cid:65)(cid:78)(cid:68)(cid:0)
responsibility to withdraw from a dangerous
(cid:84)(cid:72)(cid:69)(cid:0)
situation;
(cid:115)(cid:0) (cid:0)(cid:37)(cid:86)(cid:69)(cid:82)(cid:89)(cid:0) (cid:69)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:69)(cid:69)(cid:0) (cid:77)(cid:85)(cid:83)(cid:84)(cid:0) (cid:66)(cid:69)(cid:0) (cid:80)(cid:82)(cid:79)(cid:86)(cid:73)(cid:68)(cid:69)(cid:68)(cid:0) (cid:87)(cid:73)(cid:84)(cid:72)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0)
required training, resources and personal
protective equipment; and
(cid:115)(cid:0) (cid:0)(cid:37)(cid:86)(cid:69)(cid:82)(cid:89)(cid:0) (cid:69)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:69)(cid:69)(cid:0) (cid:77)(cid:85)(cid:83)(cid:84)(cid:0) (cid:66)(cid:69)(cid:0) (cid:80)(cid:82)(cid:79)(cid:86)(cid:73)(cid:68)(cid:69)(cid:68)(cid:0) (cid:87)(cid:73)(cid:84)(cid:72)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0)
required information to enable the employee
to mine safely.
The Safe Production Rules have been integrated
into a booklet format and have been printed
and distributed to all employees. The Safe
Production Rules have also been integrated into
our induction processes whereby all employees
returning from annual leave, new employees
and contractors, are exposed to the Safe
Production Rules.
During the year, we commissioned the services
of DuPont to undertake a comprehensive
72
72
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G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
SUSTAINABLE DEVELOPMENT
continued
review of our safety practices. This review was
undertaken on all operations. The objectives of
the assessment were threefold, and included:
(cid:84)(cid:72)(cid:69)(cid:0)
(cid:115)(cid:0) (cid:0)(cid:53)(cid:78)(cid:68)(cid:69)(cid:82)(cid:83)(cid:84)(cid:65)(cid:78)(cid:68)(cid:73)(cid:78)(cid:71)(cid:0)
(cid:79)(cid:80)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:7)(cid:0)
(cid:83)(cid:65)(cid:70)(cid:69)(cid:84)(cid:89)(cid:0)
management systems and culture;
(cid:115)(cid:0) (cid:41)(cid:68)(cid:69)(cid:78)(cid:84)(cid:73)(cid:70)(cid:89)(cid:73)(cid:78)(cid:71)(cid:0)(cid:73)(cid:77)(cid:80)(cid:82)(cid:79)(cid:86)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:79)(cid:80)(cid:80)(cid:79)(cid:82)(cid:84)(cid:85)(cid:78)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0) (cid:0)(cid:48)(cid:82)(cid:79)(cid:86)(cid:73)(cid:68)(cid:73)(cid:78)(cid:71)(cid:0) (cid:65)(cid:0) (cid:82)(cid:69)(cid:67)(cid:79)(cid:77)(cid:77)(cid:69)(cid:78)(cid:68)(cid:69)(cid:68)(cid:0) (cid:80)(cid:65)(cid:84)(cid:72)(cid:0) (cid:84)(cid:79)(cid:0) (cid:65)(cid:67)(cid:72)(cid:73)(cid:69)(cid:86)(cid:69)(cid:0)
safety improvement objectives.
Included in the assessment was a safety
perception survey which was utilised to uncover
the internal beliefs and perceptions around safety.
The survey covered a third of all employees and
took the form of structured interviews.
Each mine in the Group was visited and
evaluated against the above and a report
specifi c to the mine and the Group, was
provided.
In South Africa, the outcomes of the DuPont
assessments resulted in a project termed Safe
Production Management, which has already
been highlighted under the Gold Fields’ People
section. This has been started with dedicated
resources to ensure that the South Africa Region
has the optimal health and safety culture and
performance. The project will focus on fi ve pillars
for improved health and safety, these being:
(cid:115)(cid:0) (cid:48)(cid:82)(cid:79)(cid:71)(cid:82)(cid:65)(cid:77)(cid:77)(cid:69)(cid:0)(cid:70)(cid:79)(cid:82)(cid:0)(cid:83)(cid:65)(cid:70)(cid:69)(cid:84)(cid:89)(cid:27)
(cid:115)(cid:0) (cid:52)(cid:69)(cid:67)(cid:72)(cid:78)(cid:73)(cid:67)(cid:65)(cid:76)(cid:12)(cid:0)(cid:69)(cid:78)(cid:71)(cid:73)(cid:78)(cid:69)(cid:69)(cid:82)(cid:73)(cid:78)(cid:71)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:77)(cid:73)(cid:78)(cid:69)(cid:0)(cid:68)(cid:69)(cid:83)(cid:73)(cid:71)(cid:78)(cid:27)
(cid:115)(cid:0) (cid:35)(cid:85)(cid:76)(cid:84)(cid:85)(cid:82)(cid:69)(cid:12)(cid:0)(cid:66)(cid:69)(cid:76)(cid:73)(cid:69)(cid:70)(cid:83)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:86)(cid:65)(cid:76)(cid:85)(cid:69)(cid:83)(cid:27)
(cid:115)(cid:0) (cid:47)(cid:82)(cid:71)(cid:65)(cid:78)(cid:73)(cid:83)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:65)(cid:76)(cid:0)(cid:83)(cid:84)(cid:82)(cid:85)(cid:67)(cid:84)(cid:85)(cid:82)(cid:73)(cid:78)(cid:71)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)
(cid:115)(cid:0) (cid:48)(cid:69)(cid:82)(cid:70)(cid:79)(cid:82)(cid:77)(cid:65)(cid:78)(cid:67)(cid:69)(cid:0)(cid:76)(cid:69)(cid:65)(cid:68)(cid:69)(cid:82)(cid:83)(cid:72)(cid:73)(cid:80)(cid:14)
As mentioned in our previous report, we deploy
OHSAS18001 certifi cations at our operations,
which have been maintained at all certifi ed
operations during the year under review.
for each mine culminated
At the international operations, the DuPont
in
assessment
action plans to address the opportunities for
improvement. A number of initiatives were
implemented across all international operations,
including the following:
(cid:115)(cid:0) (cid:0)(cid:33)(cid:78)(cid:0) (cid:47)(cid:67)(cid:67)(cid:85)(cid:80)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:65)(cid:76)(cid:0) (cid:40)(cid:69)(cid:65)(cid:76)(cid:84)(cid:72)(cid:0)
(cid:65)(cid:78)(cid:68)(cid:0) (cid:51)(cid:65)(cid:70)(cid:69)(cid:84)(cid:89)(cid:0)
for all
Leadership
managers and supervisors;
training programme
(cid:115)(cid:0) (cid:0)(cid:33)(cid:78)(cid:0) (cid:73)(cid:78)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:69)(cid:0) (cid:73)(cid:78)(cid:0) (cid:76)(cid:69)(cid:65)(cid:68)(cid:69)(cid:82)(cid:83)(cid:72)(cid:73)(cid:80)(cid:0) (cid:86)(cid:73)(cid:83)(cid:73)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0) (cid:84)(cid:72)(cid:82)(cid:79)(cid:85)(cid:71)(cid:72)(cid:0)
regular workplace inspections and general
workplace visits;
(cid:115)(cid:0) (cid:0)(cid:33)(cid:0) (cid:67)(cid:69)(cid:78)(cid:84)(cid:82)(cid:65)(cid:76)(cid:0)
(cid:73)(cid:78)(cid:67)(cid:73)(cid:68)(cid:69)(cid:78)(cid:84)(cid:0)
(cid:73)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:73)(cid:71)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0) (cid:80)(cid:82)(cid:79)(cid:67)(cid:69)(cid:83)(cid:83)(cid:0)
incorporating well developed root cause
analysis principles;
(cid:115)(cid:0) (cid:0)(cid:33)(cid:0)(cid:82)(cid:73)(cid:71)(cid:79)(cid:82)(cid:79)(cid:85)(cid:83)(cid:0)(cid:86)(cid:69)(cid:72)(cid:73)(cid:67)(cid:76)(cid:69)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:77)(cid:65)(cid:67)(cid:72)(cid:73)(cid:78)(cid:69)(cid:82)(cid:89)(cid:0)(cid:73)(cid:78)(cid:83)(cid:80)(cid:69)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)
(cid:46)(cid:45)(cid:48)(cid:52)(cid:58)(cid:40)(cid:3)(cid:86)(cid:87)(cid:76)(cid:89)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:90)(cid:3)(cid:86)(cid:74)(cid:74)(cid:92)(cid:87)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:72)(cid:83)(cid:3)(cid:75)(cid:80)(cid:90)(cid:76)(cid:72)(cid:90)(cid:76)(cid:90)(cid:3)(cid:90)(cid:92)(cid:73)(cid:84)(cid:80)(cid:91)(cid:91)(cid:76)(cid:75)(cid:3)
)
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30
25
20
15
10
5
0
(cid:53)(cid:48)(cid:47)(cid:51)
(cid:58)(cid:80)(cid:83)(cid:80)(cid:74)(cid:86)(cid:90)(cid:80)(cid:90)
(cid:42)(cid:54)(cid:40)(cid:43)
(cid:42)(cid:57)(cid:20)(cid:59)(cid:41)
F2007
F2008
F2009
Breakdown of occupational diseases submitted to MBOD & RMA, F2007 – F2009
NIHL = Noise Induced Hearing Loss COAD = Chronic Obstructive Airways Disease
CR-TB = Cardiorespiratory Tuberculosis
process prior to purchase and use;
one leadership team with the integration of
(cid:115)(cid:0) (cid:0)(cid:33)(cid:0) (cid:67)(cid:69)(cid:78)(cid:84)(cid:82)(cid:65)(cid:76)(cid:0) (cid:83)(cid:65)(cid:70)(cid:69)(cid:84)(cid:89)(cid:0) (cid:68)(cid:65)(cid:84)(cid:65)(cid:66)(cid:65)(cid:83)(cid:69)(cid:0) (cid:65)(cid:76)(cid:76)(cid:79)(cid:87)(cid:73)(cid:78)(cid:71)(cid:0)
(cid:70)(cid:79)(cid:82)(cid:0)
accurate analysis of incidents and target
areas; and
occupational health, health services and the
Gold Fields Nursing College into Gold Fields
Health. In the current context of an increased
(cid:115)(cid:0) (cid:0)(cid:51)(cid:73)(cid:84)(cid:69)(cid:13)(cid:87)(cid:73)(cid:68)(cid:69)(cid:0)(cid:82)(cid:69)(cid:86)(cid:73)(cid:69)(cid:87)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:65)(cid:76)(cid:76)(cid:0)(cid:82)(cid:73)(cid:83)(cid:75)(cid:0)(cid:65)(cid:83)(cid:83)(cid:69)(cid:83)(cid:83)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)
disease burden, it is envisaged that this re-
a central risk assessment protocol.
During the year the international operations
committed to use a single standardised health
and safety record database. The Cintellate
system was selected as the most appropriate
platform. The system was expanded
to
incorporate health, personal fi tness and disease
control data. After some short-term testing, this
system will be replicated in Ghana and then a
Spanish version will be implemented in Peru.
A review of the Gold Fields Full Compliance
audit system was carried out during the year
and work was done to modify the audit protocol
and to fully implement a self audit system for
each site.
The international operations have embarked on
a training project around cultural safety change
and the development of personal values for
safe behaviour. Qualifi ed psychologists are
employed for the project and initial results are
encouraging.
Health care
South Africa Region
Introduction
The past year saw the alignment of all value
chain elements of health services under
alignment will enhance operational effi ciencies,
improve patient care and, ultimately, create
value by positioning health as a strategic partner
to achieve the objectives of the business.
The frequency of visits per miner has reduced
from 1.73 to 1.15. Sick leave days per employee
have stabilised at F2007 levels. The sick leave
rate for F2009 was 12 days per employee,
compared to 10.7 in F2008 and 12.1 in F2007.
Medical surveillance and occupational
diseases
The entire workforce has undergone the required
medical surveillance examinations this year.
In addition, 16,251 contractor examinations
have also been conducted. Lung disease
continues to form the majority of submissions
for compensation.
Tuberculosis (TB)
In the South Africa Region there has been a
reduction in the TB rates for all TB infection
types, year on year, and an even greater
reduction in the pulmonary TB rate, such that
Gold Fields achieved its target of 25 infections
per 1,000 employees for pulmonary TB rates for
this year. Multi drug resistance (MDR) continues
to increase with a total of 68 new cases
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
73
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programme, and a signifi cant contributor to the
prevention of HIV infection. A total of 39 per
cent of all employees in the South Africa Region
have been tested.
Southern Africa HIV therapeutic vaccine
project
Gold Fields has contributed US$600,000
towards the Southern African HIV Therapeutic
Vaccine Project. This collaborative strategic
HIV/Aids health initiative is aimed at advancing
trials within
vaccine clinical
therapeutic
Southern Africa. The Virax vaccine technology
and the related project proposal have been
extensively discussed with leading HIV experts
in South Africa and are favourably regarded
due to the potential for the vaccine to provide
an effective early
therapeutic
intervention,
potentially delaying the requirement to start
ART by some years.
(cid:17)(cid:22)(cid:5)
(cid:19)(cid:5)
(cid:17)(cid:5)
(cid:20)(cid:16)(cid:5)
(cid:18)(cid:25)(cid:5)
(cid:18)(cid:16)(cid:5)
(cid:19)(cid:5)
The research project has received fi nal South
African Medicines Control Council approval and
the clinical trial commenced in October 2008.
The trial involves recruiting 140 HIV positive
participants from four well established HIV/Aids
clinics across four provinces in South Africa.
Progress has been good with the number of
participants enrolled rising to 58 as at June 2009.
International Regions
Total well-being
The Total Well-being framework defi nes well-
being as the state of complete physical, social,
mental and spiritual well-being and not merely
the absence of disease or ill health. Health is
the extent to which an individual or group is
able to realise aspirations and satisfy needs
and to change or cope with the environment.
High active anti-retroviral treatment (HAART)
HAART Programme actual employees cumulative
s
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4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
F2004
F2005
F2006
F2007
F2008
F2009
Started on HAART
to date
Still on HAART
to date
Dropouts – termination and
non adherence
The table above depicts the cumulative number of employees on the HAART programme
Of those tested
and found positive
Chronic disease of lifestyle
Disease risk profi le
(cid:0)(cid:40)(cid:41)(cid:54)(cid:11)(cid:0)
(cid:0)(cid:36)(cid:73)(cid:65)(cid:66)(cid:69)(cid:84)(cid:73)(cid:67)(cid:0)
(cid:0)(cid:40)(cid:15)(cid:35)(cid:72)(cid:79)(cid:76)(cid:69)(cid:83)(cid:84)(cid:69)(cid:82)(cid:79)(cid:76)(cid:65)(cid:69)(cid:77)(cid:73)(cid:65)(cid:0)
(cid:0)(cid:40)(cid:73)(cid:71)(cid:72)(cid:0)(cid:66)(cid:76)(cid:79)(cid:79)(cid:68)(cid:0)(cid:80)(cid:82)(cid:69)(cid:83)(cid:83)(cid:85)(cid:82)(cid:69)(cid:0)
(cid:0)(cid:47)(cid:86)(cid:69)(cid:82)(cid:87)(cid:69)(cid:73)(cid:71)(cid:72)(cid:84)(cid:0)
(cid:0)(cid:47)(cid:66)(cid:69)(cid:83)(cid:69)(cid:0)
(cid:0)(cid:53)(cid:78)(cid:68)(cid:69)(cid:82)(cid:87)(cid:69)(cid:73)(cid:71)(cid:72)(cid:84)(cid:0)
Risk profi les for health risk assessments, F2009: 30 per cent of Driefontein employees completed a health risk
assessment in F2009. This assessment was a pilot project at Driefontein only, which has proved successful and is now
being implemented at all South African operations in F2010. Many employees were identifi ed with risk factors for
cardiovascular diseases: 40 per cent had high blood pressure, 3 per cent diabetes, while 29 per cent and 20 per
cent were overweight or clinically obese, respectively.
reported in F2009, compared to 47 cases for
F2008. During F2010 the monitoring of patients
receiving TB treatment will be stepped up to
limit the emergence of resistance, improve cure
rates, and reduce re-infection rates.
HIV/Aids
Approximately 30 per cent of employees in the
South Africa Region are HIV positive. This is a
signifi cant concern as it negatively impacts on
life, safety and productivity. Gold Fields has an
extensive and well developed programme to
manage all aspects of HIV and AIDS amongst
its employees. A central part of this programme
is the provision of anti-retroviral treatment
(ART) to employees with AIDS. During F2009,
941 new employees started treatment, which
brings the total number of employees on
the programme to 2,235. Only 6 per cent of
employees enrolled on the programme have
been forced to withdraw due to non-adherence
A positive physical, social and emotional state is
to the programme.
achieved through a host of different structured
approaches, without neglecting a single sphere
The deaths in service due to medical reasons
of well-being.
(of which HIV is one) has decreased from 10
per 1,000 in 2006 to 5.61 per 1,000 for F2009,
Because our operations are often in relatively
pointing to improvements in the accessibility
remote settings, a vast number of initiatives
of healthcare services to more employees. In
across three continents are in place to ensure
addition, ill health retirements have increased from
that Gold Fields employees have access to a
25 per 1,000 in F2008 to 29 per 1,000 in F2009.
host of options to address all spheres of well-
being: physical, mental, emotional, spiritual,
Informed, Consent, Voluntary Counselling and
social, fi nancial, vocational and ecological.
Testing (ICVCT) is a core part of the HIV/Aids
Many of the activities cut across the work,
74
74
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SUSTAINABLE DEVELOPMENT
continued
recreation, sport and social dimensions of
employees’ lives, thereby attempting to address
a healthy work-life balance around the clock.
employees tested were found to be HIV positive
against a national infection rate of 2.3 per cent
for Ghana as a whole.
followed by
The common approach
the
International Regions is based on the following
building blocks of the Total Employee Well-
being programme:
(cid:115)(cid:0) (cid:37)(cid:68)(cid:85)(cid:67)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:27)
(cid:115)(cid:0) (cid:33)(cid:87)(cid:65)(cid:82)(cid:69)(cid:78)(cid:69)(cid:83)(cid:83)(cid:27)
(cid:115)(cid:0) (cid:44)(cid:73)(cid:70)(cid:69)(cid:83)(cid:84)(cid:89)(cid:76)(cid:69)(cid:0)(cid:73)(cid:77)(cid:80)(cid:82)(cid:79)(cid:86)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:80)(cid:82)(cid:79)(cid:71)(cid:82)(cid:65)(cid:77)(cid:77)(cid:69)(cid:83)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0) (cid:38)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83)(cid:14)
These are supported by:
(cid:115)(cid:0) (cid:33)(cid:67)(cid:67)(cid:69)(cid:83)(cid:83)(cid:0)(cid:84)(cid:79)(cid:0)(cid:80)(cid:82)(cid:73)(cid:77)(cid:65)(cid:82)(cid:89)(cid:0)(cid:72)(cid:69)(cid:65)(cid:76)(cid:84)(cid:72)(cid:0)(cid:67)(cid:65)(cid:82)(cid:69)(cid:27)
(cid:115)(cid:0) (cid:36)(cid:73)(cid:83)(cid:69)(cid:65)(cid:83)(cid:69)(cid:0)(cid:77)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:80)(cid:82)(cid:79)(cid:71)(cid:82)(cid:65)(cid:77)(cid:77)(cid:69)(cid:83)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)
(cid:115)(cid:0) (cid:0)(cid:51)(cid:84)(cid:82)(cid:65)(cid:84)(cid:69)(cid:71)(cid:73)(cid:67)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:73)(cid:78)(cid:78)(cid:79)(cid:86)(cid:65)(cid:84)(cid:73)(cid:86)(cid:69)(cid:0)(cid:82)(cid:69)(cid:83)(cid:80)(cid:79)(cid:78)(cid:83)(cid:69)(cid:83)(cid:0)(cid:84)(cid:79)(cid:0)(cid:83)(cid:80)(cid:69)(cid:67)(cid:73)(cid:108)(cid:67)(cid:0)
healthcare challenges e.g. HIV/Aids, Malaria.
International Regions,
Following baseline well-being audits of
the
the process of
implementing and aligning all work and life
sphere activities in support of total employee
well-being has begun. Previously fragmented
elements are now seen holistically and
structures are in place to align and drive
the programme at operational level, led by
enthusiastic programme coordinators and well-
being champions. Support and guidance is
provided centrally, where reporting takes place.
West Africa Region
In Ghana, the approach to total employee
well-being is to completely integrate all chronic
disease programmes into the overall well-
being programme, including a renewed focus
on malaria. The on-site Primary Health Care
services and Employee Care Centres are vitally
important in this environment, especially when it
comes to the early diagnosis and treatment of
infectious diseases such as Malaria.
for
the
The HIV/Aids programme
region,
which was modelled on the very successful
programme in the South Africa Region, is
a benchmark for international best practice
and has received international acclaim. The
appointed well-being coordinators, programme
officers and peer educators promote voluntary
counselling and testing at safety meetings and
chop houses (food halls). A total of one thousand
four hundred and twenty (1,420) employees at
Tarkwa (74 per cent) voluntarily re-tested for
HIV, and Damang mine re-tested one hundred
and eighty seven (187) employees (50 per cent),
bringing the total workforce tested to date to
93 per cent. During the last year, 0.5 per cent of
Tuberculosis is not a major problem at the
Ghanaian operations but all employees who
undergo pre-employment screening or annual
screening are also screened for tuberculosis.
An extensive
integrated Malaria control
approach has been instituted at both Tarkwa
Information, education and
and Damang.
communication focusing on the risk of malaria,
the process of infection, signs and symptoms,
and protective measures, have been posted at
numerous accessible points on the operations.
Early case detection and prompt effective
treatment is ongoing at the mine clinics and the
ABA hospital. Employees and contractors are
encouraged to seek prompt treatment and to
comply with the treatment regimen to prevent
complicated malaria.
Both Tarkwa and Damang recently undertook
Malaria vector identification and susceptibility
testing in communities and mine villages to
determine the type of chemicals to be used
for vector control. A review of the integrated
Malaria control programme was conducted in
2009, with recommendations and action plans
to further align the Gold Fields programme
to the World Health Organisation’s Roll Back
Malaria programme. Because of a high index
of vigilance and an aggressive and prompt
treatment regimen, Malaria amongst employees
is diagnosed early and treated effectively. Only
minor losses of productivity are attributable to
the disease as semi-immune workers experience
light symptoms and recover quickly.
In terms of physical well-being, a strong football
culture exists
in Ghana with enthusiastic
participation. Employees also have access to
a host of other sporting and social activities.
Recreation clubs provide a relaxing social
venue after a hard day’s work. Social clubs and
groups are very popular in Ghana. Spiritual,
emotional and mental support is strong within
communities, where spiritual leaders play an
important role. Social events like happy hour,
where people engage in indoor games like
draughts, ludo, chess and other popular and
traditional games, are organised on holidays.
Tennis and golf coaches have been employed
at Tarkwa and Damang to train employees.
Gymnasium facilities have been made available
for employees and their dependants on the mine
sites as well as at the Accra office. Employees
have started enrolling at the gym and swimming
lessons are also ongoing.
Australasia Region
In Australia, the St Ives and Agnew operations
have both adopted a strong holistic well-being
approach. Levels of awareness and health
education are high and actively promoted by
top and middle management. A well-being
coordinator leads the team at St Ives, whilst a
very effective integrated approach is achieved
within the safety structures at Agnew mine.
The SafeSpine programme aimed at education
and awareness about mobility and manual
handling has created new thinking and practice
in injury reduction. The programme was originally
run as a pilot phase in 2008 at the St Ives
mine, in which reduction in sprains and strains
was achieved for the maintenance group that
attended the programme. SafeSpine has been
initiated at all three underground operations at
St Ives and will be expanded to the processing
and open pit areas. The maintenance phase of
the programme continues with 100 per cent
compliance of shift crews doing a pre-shift warm
up. In addition to this, Agnew mine conducts
core strength and flexibility assessments on
site, as well as myo-therapy treatment sessions,
which provide therapeutic relief without the
necessity for leaving the workplace.
The recreational facilities at Kambalda and
Leinster both boast excellent
for
residents and numerous opportunities exist for
social and sporting interaction. Local general
practitioners provide effective primary health
care for the community.
facilities
At our Agnew mine, a health assessment
facility is to be established on site with links
to industry professionals such as dieticians,
general practitioners and psychologists
in
order to provide a comprehensive service to all
employees and contractors across the site, with
the aim of improving general health.
Gold Fields Australia employees have access to
a 24/7 Employee Assistance Programme which
provides convenient and confidential access to
counsellors and other healthcare professionals.
A good culture towards fitness for work is
emerging as very few positive drug and alcohol
cases resulted from random tests conducted
over the past year.
Regional office employees in Perth were invited
to participate in a voluntary and confidential
health and fitness appraisal. Group reports were
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
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t
l
generated which will guide and inform future
health and well-being initiatives.
South America Region
At Cerro Corona
in Peru, the well-being
programme is coordinated through a committee
which integrates all aspects of well-being. This
multi-disciplinary team addresses issues such as
accommodation, sporting events, recreational
facilities and activities, access to gymnasium
and facilitating spiritual and social needs.
An on-site gymnasium is well attended, where
a personal fitness instructor provides physical
exercise and nutritional advice. On weekends,
spiritual leaders from numerous denominations
lead services at the mine site. In their free time,
employees have access to the internet and
board games such as chess.
The Primary Health Care clinic on site provides
24-hour doctor and nurse service in support
of well-being maintenance. Health education
and preventative medicine is conducted at this
centre. The centre also conducts well-being
assessments and monitors employee well-
being trends.
Due to a relatively cold and wet climate at high
altitude, respiratory diseases feature at the Cerro
Corona mine, but are treated promptly and
effectively. Preventative measures for altitude
sickness are undertaken
through physical
examinations and observations for all visitors to
the site to prevent and treat any cases.
the
recognises
H1N1 and other respiratory diseases:
implications for Gold Fields
As a labour intensive global organisation,
threat of
Gold Fields
acute communicable
respiratory disease,
including H1N1 (swine flu), avian flu, SARS,
etc. With operations around the world, a
generic approach has been adopted which
integrates with relevant country programmes.
Preparedness measures for wide scale acute
respiratory epidemics include, but are not
limited to the following:
(cid:115)(cid:0)(cid:0)(cid:0)(cid:33)(cid:0) (cid:87)(cid:65)(cid:84)(cid:67)(cid:72)(cid:73)(cid:78)(cid:71)(cid:0) (cid:66)(cid:82)(cid:73)(cid:69)(cid:70)(cid:0) (cid:79)(cid:70)(cid:0) (cid:65)(cid:76)(cid:76)(cid:0) (cid:77)(cid:65)(cid:74)(cid:79)(cid:82)(cid:0) (cid:72)(cid:69)(cid:65)(cid:76)(cid:84)(cid:72)(cid:0) (cid:82)(cid:73)(cid:83)(cid:75)(cid:83)(cid:15)
pandemics;
(cid:115)(cid:0)(cid:0)(cid:0)(cid:40)(cid:69)(cid:65)(cid:76)(cid:84)(cid:72)(cid:0)(cid:65)(cid:87)(cid:65)(cid:82)(cid:69)(cid:78)(cid:69)(cid:83)(cid:83)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:85)(cid:80)(cid:0)(cid:84)(cid:79)(cid:0)(cid:68)(cid:65)(cid:84)(cid:69)(cid:0)(cid:73)(cid:78)(cid:70)(cid:79)(cid:82)(cid:77)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)
on outbreaks;
(cid:115)(cid:0)(cid:0)(cid:0)(cid:48)(cid:69)(cid:82)(cid:83)(cid:79)(cid:78)(cid:65)(cid:76)(cid:0) (cid:72)(cid:89)(cid:71)(cid:73)(cid:69)(cid:78)(cid:69)(cid:0) (cid:65)(cid:78)(cid:68)(cid:0) (cid:67)(cid:79)(cid:77)(cid:77)(cid:85)(cid:78)(cid:73)(cid:84)(cid:89)(cid:0) (cid:72)(cid:69)(cid:65)(cid:76)(cid:84)(cid:72)(cid:0)
prevention programmes and drives;
(cid:115)(cid:0)(cid:0)(cid:0)(cid:51)(cid:67)(cid:69)(cid:78)(cid:65)(cid:82)(cid:73)(cid:79)(cid:0)(cid:80)(cid:76)(cid:65)(cid:78)(cid:73)(cid:78)(cid:71)(cid:0)(cid:70)(cid:79)(cid:82)(cid:0)(cid:65)(cid:66)(cid:83)(cid:69)(cid:78)(cid:84)(cid:69)(cid:69)(cid:73)(cid:83)(cid:77)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:82)(cid:69)(cid:86)(cid:73)(cid:69)(cid:87)(cid:0)
of human resources policies and procedures;
(cid:115)(cid:0)(cid:0)(cid:0)(cid:40)(cid:69)(cid:65)(cid:76)(cid:84)(cid:72)(cid:0)(cid:83)(cid:69)(cid:82)(cid:86)(cid:73)(cid:67)(cid:69)(cid:0)(cid:80)(cid:82)(cid:69)(cid:80)(cid:65)(cid:82)(cid:69)(cid:68)(cid:78)(cid:69)(cid:83)(cid:83)(cid:0)(cid:80)(cid:76)(cid:65)(cid:78)(cid:83)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:0)(cid:33)(cid:67)(cid:67)(cid:69)(cid:83)(cid:83)(cid:0)
(cid:84)(cid:79)(cid:0) (cid:48)(cid:82)(cid:73)(cid:77)(cid:65)(cid:82)(cid:89)(cid:0) (cid:40)(cid:69)(cid:65)(cid:76)(cid:84)(cid:72)(cid:0) (cid:35)(cid:65)(cid:82)(cid:69)(cid:12)(cid:0) (cid:69)(cid:65)(cid:82)(cid:76)(cid:89)(cid:0)
diagnosis and treatment; and
(cid:115)(cid:0)(cid:0)(cid:0)(cid:36)(cid:73)(cid:83)(cid:69)(cid:65)(cid:83)(cid:69)(cid:0)(cid:77)(cid:79)(cid:78)(cid:73)(cid:84)(cid:79)(cid:82)(cid:73)(cid:78)(cid:71)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:82)(cid:69)(cid:80)(cid:79)(cid:82)(cid:84)(cid:73)(cid:78)(cid:71)(cid:14)
The 2009 H1N1 pandemic has spread
than expected.
rapidly
worldwide more
Fortunately the severity of the Influenza A in this
“pandemic year” has proved to be of a more
moderate nature and is being treated according
to usual treatment protocols. South Africa,
however, may be hardest hit due to relatively
high prevalence of chronic respiratory conditions
and
immune compromise. Accordingly, a
more aggressive preventative, diagnostic and
treatment protocol is being adopted to minimise
disease consequences and loss of productivity.
ENVIRONMENTAL
MANAGEMENT
Supporting our overall Sustainable Development
policy and framework, we have developed an
environmental policy framework. Supporting
the environmental policy, we are developing
practice guides that serve as internal guidance
for the operations. These practice guides serve
to include guidance on:
(cid:115)(cid:0) (cid:37)(cid:78)(cid:86)(cid:73)(cid:82)(cid:79)(cid:78)(cid:77)(cid:69)(cid:78)(cid:84)(cid:65)(cid:76)(cid:0)(cid:77)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:83)(cid:89)(cid:83)(cid:84)(cid:69)(cid:77)(cid:83)(cid:27)
(cid:115)(cid:0) (cid:37)(cid:78)(cid:86)(cid:73)(cid:82)(cid:79)(cid:78)(cid:77)(cid:69)(cid:78)(cid:84)(cid:65)(cid:76)(cid:0)(cid:67)(cid:79)(cid:78)(cid:84)(cid:82)(cid:65)(cid:67)(cid:84)(cid:0)(cid:73)(cid:78)(cid:67)(cid:76)(cid:85)(cid:83)(cid:73)(cid:79)(cid:78)(cid:83)(cid:27)(cid:0)
(cid:115)(cid:0) (cid:35)(cid:76)(cid:73)(cid:77)(cid:65)(cid:84)(cid:69)(cid:0)(cid:67)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69)(cid:27)
(cid:115)(cid:0) (cid:34)(cid:73)(cid:79)(cid:68)(cid:73)(cid:86)(cid:69)(cid:82)(cid:83)(cid:73)(cid:84)(cid:89)(cid:27)
(cid:115)(cid:0) (cid:37)(cid:78)(cid:86)(cid:73)(cid:82)(cid:79)(cid:78)(cid:77)(cid:69)(cid:78)(cid:84)(cid:65)(cid:76)(cid:0)(cid:69)(cid:67)(cid:79)(cid:78)(cid:79)(cid:77)(cid:73)(cid:67)(cid:83)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0) (cid:45)(cid:73)(cid:78)(cid:69)(cid:0)(cid:67)(cid:76)(cid:79)(cid:83)(cid:85)(cid:82)(cid:69)(cid:14)
Being an ISO14001 certified company, the
management systems practice guide mirrors
the requirements of the ISO14001 standard
and contains the requirement for operations
to maintain such certification. In the case of
new operations, the practice guide provides
guidance on how to achieve certification.
In line with our material stewardship and supply
chain management policy, we are consolidating
the requirements for conformance by our
business partners and
the environmental
contract inclusions practice guide contributes
to this process.
During F2009 we started to develop a carbon
strategy for the Group. The intention is to
consolidate our current practices and to position
the company appropriately with regard to this
important issue. It is expected that this project
will be completed early in the new financial
year and that the strategy will be integrated
into the climate change practice guide. Further
information regarding our response to climate
change is provided under the climate change
and energy efficiency section of this report.
As the issue of biodiversity is an essential
component of our environmental management
systems, we are consolidating our approach
into a practice guide. We are fortunate to have
considerable expertise in this regard and these
experts are actively involved in the development
of the document.
We are also piloting an environmental economics
system at a specific South African operation,
with the intention to develop a standardised
approach that can be replicated at the other
operations throughout the Group. It is intended
that this system will link into various systems
such as SAP. On completion of the pilot, an
environmental economics practice guide will be
developed.
On the closure front, we have a long-standing
Sarbanes Oxley compliant protocol for closure
provision. This protocol documents
the
approach to closure, strategic principles to
consider, and how to determine the provisioning
quantum. The development of this practice
guide was relatively simple as we converted
our existing procedure into the practice guide
format.
All of the above practice guide documents went
through an internal review process to ensure
that they are appropriate to all operations.
This approach also allows us to gain leverage
from the substantial expertise in the Group and
facilitates a process of knowledge sharing and
cross pollination.
Environmental management systems
All of our operations have implemented formal
environmental management systems that are
ISO14001:2004 (Environmental Management
Systems) certified. We are pleased to report
that South Deep achieved certification
during the year and that Cerro Corona has
embarked on the process of certification.
During the year, our certified operations have
all undergone numerous audits as required by
their certifications and we are pleased that all
operations have retained their certifications.
Our environmental management systems for
exploration activities are also ISO14001 certified
and certifications for these activities have also
been retained.
The exploration offices have also deployed
formalised environmental management systems
and are ISO14001 certified.
Environmental data
The primary function of Gold Fields Environmental
Management System is to generate data for
internal management purposes, principal
among which are continual
improvement,
prevention of pollution, achievement of targets
set by management, and the maintenance of
76
76
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
SUSTAINABLE DEVELOPMENT
continued
Key consumables:
Timber (tons)
Driefontein
Kloof
Beatrix
South Deep
F2009
F2008
F2007
F2006
F2005
34,549
27,286
28,171
254
40,864
37,982
41,659
n/a
43,942
37,574
42,587
n/a
43,204
55,735
43,259
n/a
45,100
39,900
46,100
n/a
Blasting agents (tons)
F2009
F2008
F2007
F2006
F2005
Driefontein
Kloof*
Beatrix
South Deep
Tarkwa
Damang
St Ives
Agnew
*Excludes contractor blasting agents **Not determined
3,127
731
3,035
86
23,884
2,970
7,390
588
1,993
2,196
3,231
n/d**
30,578
4,148
6,258
3,421
1,400
1,160
5,185
n/a
29,712
3,568
4,256
3,287
1,042
1,415
4,607
n/a
28,556
2,044
4,928
4,130
1,400
1,300
4,600
n/a
23,000
1,300
4,000
1,700
Hydrochloric acid HCL (tons)
F2009
F2008
F2007
F2006
F2005
Driefontein
Kloof
Beatrix
South Deep
Tarkwa
Damang
St Ives
Agnew
Lime (tons)
Driefontein
Kloof
Beatrix
South Deep
Tarkwa
Damang
St Ives
Agnew
1,054
729
673
93
1,048
270
355
197
1,238
41
807
171
1,481
198
272
176
710
433
738
n/a
1,267
173
236
192
1,967
599
692
n/a
1,444
232
288
140
2,690
790
840
n/a
1,100
200
370
150
F2009
F2008
F2007
F2006
F2005
3,718
2,928
2,831
3,744
4,358
2,645
15,860
1,635
4,021
4,301
2,951
3,976
4,289
2,741
12,894
1,155
5,782
3,589
3,422
n/a
3,537
3,251
11,820
1,402
7,580
4,916
3,033
n/a
3,085
3,239
9,786
2,042
7,600
9,100
3,900
n/a
2,500
3,500
18,300
2,400
Cement (tons)*
F2009
F2008
F2007
F2006
F2005
191
Driefontein
683
Kloof
166
Beatrix
231
South Deep
37,147
Tarkwa
0
Damang
7,925
St Ives
9,354
Agnew
*Reporting methodology has been amended **Not determined
243
39
823
n/d**
60,577
0
11,055
4,525
458
44
587
n/a
67,905
5
8,674
2,255
760
101
762
n/a
64,507
23
8,386
2,051
900
105
1,100
n/a
72,100
13
11,500
2,400
Caustic soda (tons)
F2009
F2008
F2007
F2006
F2005
Driefontein
Kloof
Beatrix
South Deep
Tarkwa
Damang
St Ives
Agnew
452
293
578
294
809
393
352
486
282
157
624
337
869
354
307
350
359
81
512
n/a
749
336
330
274
592
176
556
n/a
619
347
284
297
650
510
530
n/a
300
330
370
280
First tree planted by the General Manager of Tarkwa
Gold Mine on Environmental Day, 2009
legal compliance. The data presented in the
tables below provides a sample of the range
of information generated by this system and
has been selected for its materiality as well
as disclosure in terms of the Global Reporting
Initiative (GRI) indicators. All data is based on
direct measurement or calculations based on
empirical data using generally accepted best
practice methodologies.
Instances where
previous years’ data have been restated
are highlighted in the table. None of these
corrections are deemed to be material.
reflect different
The data for the underground South African
resource
operations will
consumption when compared to the open-pit
operations in Ghana and Australia. In South
Africa, electricity provides the primary source
of power required for the transportation of ore
from the rock face to the processing plants; in
the opencast mines this is done with diesel-
powered trucks. Open-pit mines also do not
need timber for roof support, as do the South
African mines. They do, however, have a greater
need for cement, which is an input for the heap
leach operations. The other reagents used inside
the plant vary in accordance with ore mineralogy.
In F2008, we reported mainly on greenhouse gas
emissions (specifically direct CO2 consumption).
We are reviewing our data collection systems
and will resume reporting this data between
operations. Efforts to normalize the reporting
of all disclosed environmental data so as to
provide a better overall indication of progress
and comparison between operations is ongoing.
The tables that follow represent the Group’s
performance with regard to key consumables
(timber is not material within the international
operations and Cerro Corona is not included as
it is not operated for a full 12 months.
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
77
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2
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l
i
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u
s
t
a
n
a
b
e
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e
v
e
o
p
m
e
n
t
l
Incidents
We continue to report environmental incidents in accordance with our incident reporting system.
This system allows for the reporting of incidents from level 1 through 5 which is dictated by the
severity of the incident. These levels are defined as:
(cid:115)(cid:0) (cid:0)(cid:44)(cid:69)(cid:86)(cid:69)(cid:76)(cid:0)(cid:17)(cid:0)(cid:110)(cid:0)(cid:0)(cid:73)(cid:78)(cid:67)(cid:73)(cid:68)(cid:69)(cid:78)(cid:84)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:77)(cid:73)(cid:78)(cid:79)(cid:82)(cid:0)(cid:78)(cid:79)(cid:78)(cid:13)(cid:67)(cid:79)(cid:78)(cid:70)(cid:79)(cid:82)(cid:77)(cid:65)(cid:78)(cid:67)(cid:69)(cid:0)(cid:84)(cid:72)(cid:65)(cid:84)(cid:0)(cid:82)(cid:69)(cid:83)(cid:85)(cid:76)(cid:84)(cid:0)(cid:73)(cid:78)(cid:0)(cid:78)(cid:79)(cid:0)(cid:79)(cid:82)(cid:0)(cid:78)(cid:69)(cid:71)(cid:76)(cid:73)(cid:71)(cid:73)(cid:66)(cid:76)(cid:69)(cid:0)(cid:65)(cid:68)(cid:86)(cid:69)(cid:82)(cid:83)(cid:69)(cid:0)(cid:69)(cid:78)(cid:86)(cid:73)(cid:82)(cid:79)(cid:78)(cid:77)(cid:69)(cid:78)(cid:84)(cid:65)(cid:76)(cid:0)
permits. Similarly, bio-monitoring conducted to
identify any potential environmental impacts to
biological species due to mine water discharges
indicated that the surface water conditions were
able to support the desired level of biodiversity.
impact;
(cid:115)(cid:0) (cid:0)(cid:44)(cid:69)(cid:86)(cid:69)(cid:76)(cid:0)(cid:18)(cid:0)(cid:110)(cid:0)(cid:0)(cid:73)(cid:78)(cid:67)(cid:73)(cid:68)(cid:69)(cid:78)(cid:84)(cid:83)(cid:0) (cid:84)(cid:72)(cid:65)(cid:84)(cid:0) (cid:82)(cid:69)(cid:83)(cid:85)(cid:76)(cid:84)(cid:0) (cid:73)(cid:78)(cid:0) (cid:83)(cid:72)(cid:79)(cid:82)(cid:84)(cid:13)(cid:84)(cid:69)(cid:82)(cid:77)(cid:12)(cid:0) (cid:76)(cid:73)(cid:77)(cid:73)(cid:84)(cid:69)(cid:68)(cid:0) (cid:65)(cid:78)(cid:68)(cid:0) (cid:78)(cid:79)(cid:78)(cid:13)(cid:79)(cid:78)(cid:71)(cid:79)(cid:73)(cid:78)(cid:71)(cid:0) (cid:65)(cid:68)(cid:86)(cid:69)(cid:82)(cid:83)(cid:69)(cid:0) (cid:69)(cid:78)(cid:86)(cid:73)(cid:82)(cid:79)(cid:78)(cid:77)(cid:69)(cid:78)(cid:84)(cid:65)(cid:76)(cid:0)
impacts;
(cid:115)(cid:0) (cid:0)(cid:44)(cid:69)(cid:86)(cid:69)(cid:76)(cid:0)(cid:19)(cid:0)(cid:110)(cid:0)(cid:73)(cid:78)(cid:67)(cid:73)(cid:68)(cid:69)(cid:78)(cid:84)(cid:83)(cid:0)(cid:84)(cid:72)(cid:65)(cid:84)(cid:0)(cid:82)(cid:69)(cid:83)(cid:85)(cid:76)(cid:84)(cid:0)(cid:73)(cid:78)(cid:0)(cid:79)(cid:78)(cid:71)(cid:79)(cid:73)(cid:78)(cid:71)(cid:12)(cid:0)(cid:66)(cid:85)(cid:84)(cid:0)(cid:76)(cid:73)(cid:77)(cid:73)(cid:84)(cid:69)(cid:68)(cid:0)(cid:69)(cid:78)(cid:86)(cid:73)(cid:82)(cid:79)(cid:78)(cid:77)(cid:69)(cid:78)(cid:84)(cid:65)(cid:76)(cid:0)(cid:73)(cid:77)(cid:80)(cid:65)(cid:67)(cid:84)(cid:27)
(cid:115)(cid:0) (cid:0)(cid:44)(cid:69)(cid:86)(cid:69)(cid:76)(cid:0)(cid:20)(cid:0)(cid:110)(cid:0)(cid:73)(cid:78)(cid:67)(cid:73)(cid:68)(cid:69)(cid:78)(cid:84)(cid:83)(cid:0)(cid:84)(cid:72)(cid:65)(cid:84)(cid:0)(cid:82)(cid:69)(cid:83)(cid:85)(cid:76)(cid:84)(cid:0)(cid:73)(cid:78)(cid:0)(cid:77)(cid:69)(cid:68)(cid:73)(cid:85)(cid:77)(cid:13)(cid:84)(cid:69)(cid:82)(cid:77)(cid:0)(cid:69)(cid:78)(cid:86)(cid:73)(cid:82)(cid:79)(cid:78)(cid:77)(cid:69)(cid:78)(cid:84)(cid:65)(cid:76)(cid:0)(cid:73)(cid:77)(cid:80)(cid:65)(cid:67)(cid:84)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0) (cid:44)(cid:69)(cid:86)(cid:69)(cid:76)(cid:0)(cid:21)(cid:0)(cid:110)(cid:0)(cid:73)(cid:78)(cid:67)(cid:73)(cid:68)(cid:69)(cid:78)(cid:84)(cid:83)(cid:0)(cid:84)(cid:72)(cid:65)(cid:84)(cid:0)(cid:82)(cid:69)(cid:83)(cid:85)(cid:76)(cid:84)(cid:0)(cid:73)(cid:78)(cid:0)(cid:76)(cid:79)(cid:78)(cid:71)(cid:13)(cid:84)(cid:69)(cid:82)(cid:77)(cid:0)(cid:69)(cid:78)(cid:86)(cid:73)(cid:82)(cid:79)(cid:78)(cid:77)(cid:69)(cid:78)(cid:84)(cid:65)(cid:76)(cid:0)(cid:73)(cid:77)(cid:80)(cid:65)(cid:67)(cid:84)(cid:14)
In keeping with the principles of materiality, Gold Fields is reporting level two incidents and above.
Level 1 incidents are of a minor and administrative nature only.
The table below reflects the incidents for the reporting period:
Level
2
3
4
5
F2009
181
7
0
0
F2008
111
10
0
0
F2007
117
3
0
0
F2006
71
4
0
0
F2005
129
F2004
208
F2003
144
3
0
0
2
0
0
4
0
0
Unfortunately there were seven level three incidents during the reporting period. The table below
provides detail on the nature of the incidents as well as corrective actions taken. It should be noted
that there have been zero cyanide related incidents.
Level 3 incidents
Remedial action
High levels of sedimentation in the Mesa de
Plata sediment pond at Cerro Corona.
About 600 cubic metres of tailings were spilt
south of Letsatsing Village at Driefontein.
The pond was cleaned out to ensure the correct
functioning of the facility. Changes to the design
were implemented to ensure ongoing efficiency.
Pipe was replaced and regular thickness tests
are conducted on all pipes in the mine. The site
was cleaned up.
About 800 cubic metres of tailings spilt between
a mine workers’ hostel and redundant playing
grounds at Driefontein.
Pipe was replaced and regular thickness tests
are conducted on all pipes in the mine. The site
was cleaned up.
300 cubic metres of tailings were spilt along
the road to the east of No.1 tailings dam at
Driefontein.
Pipe was replaced and regular thickness tests
are conducted on all pipes in the mine. The site
was cleaned up.
Tailing spillage at No 4 tailings dam (6 station) at
Driefontein.
Tailings spill at No 2 tailings dam pipe burst at
Driefontein.
Tailings spillage at No 2 tailings dam at
Driefontein.
Occurred due to pipe casing corrosion. The
pipe was replaced and cleaning operations are
underway.
Occurred due to valve failure. The faulty valve
has been replaced. The tailings spill has been
contained and cleaning operations are nearing
completion.
Occurred due to pipe corrosion. The pipe has
been replaced and cleaning operations are
nearing completion.
At the South African operations, routine water
monitoring
(including water sampling and
bio-monitoring, which are typically done in
structures like the bio-monitoring dams shown
in the picture overleaf) was performed at
strategic areas on different mines to determine
water quality for both surface and underground
water throughout the year. Water sampling
results conducted to check levels of pollutants
in Gold Fields water circuits revealed a trend
similar to that of the previous year, which
was within the limits set in the current water
Of the four South African operations, only one
(Kloof) has been issued with a new water use
licence. Driefontein has received a draft water
use licence, while the Regulators have indicated
that South Deep’s draft licence is imminent.
Beatrix is in a unique situation in that it has
received correspondence from its regulatory
authority indicating that it was not necessary
to apply for a water use licence. Despite this,
a decision was made to proactively apply for a
water use licence. Conditions on the licences
(i.e. both the final and the draft licences) are
more stringent than the previous water permits.
Consequently, all operations are changing
their systems to be in line with the new licence
conditions, including those mines which are
still awaiting their water use licences. It is
worth mentioning that some conditions will
take time (about two years) to implement as
they necessitate physical changes in various
mine engineering controls. During the year,
Gold Fields developed and implemented a
comprehensive new water strategy, utilising
the best available technologies and proven
best practices, to ensure that all water in all of
the applicable water circuits complies with the
national drinking water standards, and to ensure
that water leaving Gold Fields’ properties has no
adverse impact on people or the environment.
In terms of issues related to water quality in the
Wonderfonteinspruit (WFS), Gold Fields has
continued, during the year, to engage proactively
with all stakeholders in the community of the
WFS Catchment Area, and played a leading role
in the numerous public bodies and processes
related to the WFS.
As previously reported, Gold Fields established
the Wonderfontien Action Group (WAG), which
comprised inter alia, the gold mines in the
area, the regulators, academic institutions and
representatives of the community. The WAG
had three stated objectives, these being to:
(cid:115)(cid:0)(cid:0)(cid:0)(cid:51)(cid:65)(cid:77)(cid:80)(cid:76)(cid:69)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:83)(cid:69)(cid:68)(cid:73)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0) (cid:73)(cid:78)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:55)(cid:38)(cid:51)(cid:0) (cid:83)(cid:79)(cid:0) (cid:65)(cid:83)(cid:0) (cid:84)(cid:79)(cid:0)
determine the spatial extent of any elevated
heavy metals;
(cid:115)(cid:0)(cid:0)(cid:0)(cid:48)(cid:73)(cid:76)(cid:79)(cid:84)(cid:0) (cid:65)(cid:0) (cid:87)(cid:65)(cid:84)(cid:69)(cid:82)(cid:0) (cid:77)(cid:79)(cid:78)(cid:73)(cid:84)(cid:79)(cid:82)(cid:73)(cid:78)(cid:71)(cid:0) (cid:77)(cid:69)(cid:84)(cid:72)(cid:79)(cid:68)(cid:79)(cid:76)(cid:79)(cid:71)(cid:89)(cid:0) (cid:84)(cid:72)(cid:65)(cid:84)(cid:0)
would be open and transparent and available
on a “real time” basis to all stakeholders; and
(cid:115)(cid:0)(cid:0)(cid:0)(cid:40)(cid:69)(cid:76)(cid:80)(cid:0) (cid:82)(cid:69)(cid:13)(cid:69)(cid:83)(cid:84)(cid:65)(cid:66)(cid:76)(cid:73)(cid:83)(cid:72)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:55)(cid:65)(cid:84)(cid:69)(cid:82)(cid:0) (cid:45)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)
Forums in the catchment area.
To date all three objectives have been met. The
approach to water monitoring was successful
and now needs to be rolled out in the catchment
area. Furthermore, in order to ensure the
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continued
continuation of the processes initiated by
the WAG and to further increase the level of
objectivity, it was decided to incorporate the
function into the Water Management Forums
in the form of a Mining Interest Group (MIG).
This group, which currently includes other
mining companies in the area, is a subset of
the larger Forum and is functioning well and has
remained involved with the issues at hand. In a
parallel process of contributing towards finding
an acceptable and practicable solution for the
WFS, the Regulators have recently formed
the Steering Committee for Remediation of
Mining Related Radioactive Contamination
(SCRMRRC) that will be looking at radioactive
contamination of water in the whole of South
Africa. The Wonderfonteinspruit Catchment
Area Technical Working Group was formed
under the auspices of the SCRMRRC to look
specifically at the WFS catchment area. This
technical working group is characterised by
representation from the mining industry as well
as the surrounding communities.
The issue of total dissolved solids (TDS)
exceeding licence conditions at the tailings
storage facility at Agnew was disclosed in our
previous annual report. The focus with regard
to this issue has been to rehabilitate the tailings
storage facility as it is no longer in use. We have
also launched an extensive investigation to
better understand the source of the elevation
of the TDS.
to
regard
At Cerro Corona, we have assigned costs
to closure actions with
to water
management. As part and parcel of our
refine our
operations, we continue
understanding of the mineralogy of the gold
bearing deposit. This is achieved through a
very comprehensive sampling and leach testing
programme that seeks to ensure that we deal
with sulphide bearing material appropriately and
that closure actions are designed accordingly.
The deposit does contain material that has the
potential to be acid generating, which explains
the implementation of this comprehensive and
proactive programme. Overseeing this entire
process, we have procured the services of
internationally recognised experts to serve on a
review board that provides us with independent
insight and review of all of our actions with
regard to tailings material and waste rock.
At Tarkwa, grade control drilling has indicated
the presence of sulphuric material in one of our
pits. We have designed a sampling programme,
which integrates with our usual grade control
drilling and seeks to ensure that we understand
the extent of the sulphuric material and that the
necessary actions are put in place to handle the
material responsibly. Fortunately, the presence
of such material is uncharacteristic at our
Ghanaian operations.
Bio-monitoring dams at Kloof, which is typical of Gold
Fields’ responsible water management programme
Total water withdrawn
from local sources (m3)
Driefontein
Kloof
Beatrix
South Deep1
Tarkwa
Damang
St Ives
Agnew
F2009
F2008
F2007
F2006
F2005
17,370,067
20,847,990
11,937,000
4,477
4,527,850
476,742
12,272,576
242,705
14,720,540
20,671,000
11,232,000
5,027
7,941,690
547,910
14,197,081
246,700
16,416,000
20,799,974
16,912,192
n/a
5,596,000
594,376
3,941,007
192,612
17,450,000
23,862,289
13,204,645
n/a
2,539,527
673,439
3,213,848
2,128,000
18,200,000
25,500,000
15,100,000
n/a
5,200,000
800,000
3,600,000
2,100,000
1 Different reporting methodology used by previous owner, and therefore not reported in years prior to F2008.
Cerro Corona not included as it has not operated for a full 12 month period.
Energy and climate change
The implementation of the first phase of
the Beatrix methane extraction project was
temporarily suspended and a decision was
made to first establish market interest and then
to negotiate an offtake agreement prior to any
further expenditure. Tenders were requested
and a total of 22 offers received. Many of the
offers extended well beyond the 2012 closure
of the Kyoto Protocol and some extended to
2020. These tenders have been reviewed and
the top three tenders selected. Negotiations
to establish a draft termsheet were completed
during July 2009.
At Kloof, a project design document (PDD)
explaining
the energy savings associated
with the implementation of hard ice cooling
replacing conventional cold water cooling
systems at 3 shaft was completed with a
calculated potential energy saving equivalent
to an estimated 55,000 Certified Emission
Reduction (CER) credits. The validation of the
PDD is scheduled for early F2010. Two Project
Solar power used at St Ives Gold Mine in Australia
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Initiation Notes (PIN) dealing with Voluntary
(VER) credits were
Emission Reduction
prepared and submitted to TFS brokers in the
United Kingdom to test the market. Response
has been slow as the VER market has slowed
down significantly as a result of the economic
downturn. Additional projects identified include
Project Ethos, energy savings associated
with reduced waste rock hoisted and energy
recovery and electricity generation as part
of the Uranium Project associated with the
sulphur roasting part of the project. Exclusivity
agreements to further develop these potential
projects are under review.
The National Business Initiative’s (NBI) Carbon
Disclosure Project aims to act as an intermediary
between large corporations and shareholders on
all climate change related issues and requires
us to update our submissions by end of May of
each year. Our May 2008 submission was well
received and we were ranked second in the
carbon intensive sector by the NBI.
As part of our carbon footprint determinations,
we have compared calendar years 2007 and
2008 on a like for like basis. This assessment
uncovered the fact that our energy savings
measures are bearing fruit with the total
emissions reducing by some 290,000 tons
year on year, which equates to a 4.5 per cent
reduction.
Following the completion of the determination
of our carbon footprint this year, we procured
the services of an external service provider
with expertise on
issue of climate
the
change to assist us in the development of a
carbon strategy. This work has commenced
and will be completed early in the new
financial year.
Beatrix Gold Mine has the highest methane
emission rate of any gold mine in South Africa.
Methane is a potent greenhouse gas of which the
contribution to global warming and climate change
is 21 times higher than that of carbon dioxide. To
mitigate its global warming impact, a carbon credit
project under the Clean Development Mechanism
(CDM) of the Kyoto Protocol has been registered
to capture and destroy the methane emissions
from the Beatrix mine.
The methane will be captured at source and
piped to surface along an extraction column.
During phase one of the project the methane will
be flared and, during a second phase, electricity
will be generated by using reciprocating gas
engines which will generate approximately
4MW of electrical power and which will be
made available for use by the mine. Carbon
credits will be earned for both the destruction of
the methane gas as well as for the production
of electricity.
This project has a number of benefits for the
mine, being the mitigation of the global warming
impact as well as the removal of approximately
(cid:20)(cid:25)(cid:5)(cid:0) (cid:79)(cid:70)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:84)(cid:79)(cid:84)(cid:65)(cid:76)(cid:0) (cid:86)(cid:79)(cid:76)(cid:85)(cid:77)(cid:69)(cid:0) (cid:79)(cid:70)(cid:0) (cid:77)(cid:69)(cid:84)(cid:72)(cid:65)(cid:78)(cid:69)(cid:0) (cid:71)(cid:65)(cid:83)(cid:0) (cid:70)(cid:82)(cid:79)(cid:77)(cid:0)
the general body of the air, thus reducing the
methane related risk in the mine. There is
furthermore a potential benefit in that the mine
will generate an income through the trading
of carbon credits whilst reducing its carbon
(cid:70)(cid:79)(cid:79)(cid:84)(cid:80)(cid:82)(cid:73)(cid:78)(cid:84)(cid:0)(cid:66)(cid:89)(cid:0)(cid:65)(cid:80)(cid:80)(cid:82)(cid:79)(cid:88)(cid:73)(cid:77)(cid:65)(cid:84)(cid:69)(cid:76)(cid:89)(cid:0)(cid:18)(cid:21)(cid:5)(cid:14)(cid:0)(cid:41)(cid:84)(cid:0)(cid:87)(cid:73)(cid:76)(cid:76)(cid:0)(cid:65)(cid:76)(cid:83)(cid:79)(cid:0)(cid:65)(cid:83)(cid:83)(cid:73)(cid:83)(cid:84)(cid:0)
in alleviating the energy shortage experienced
within South Africa. This is the first project of
its nature in the mining industry in South Africa.
the
At
international operations, we have
integrated all aspects of climate change into
our strategic planning exercise as well as into
our Resources and Reserves Review that
takes place on an annual basis. Furthermore,
the issue of climate change is a fundamental
consideration within our strategic management
system
for
sustainable development.
that we have
implemented
For the Australasia Region, we continue to
submit the required information to the Australian
Greenhouse Office. We also submitted our initial
public and government reports in accordance
with the Energy Efficiency Opportunities Act.
The programme is targeted at organisations
using in excess of 0.5PJ of energy per annum
and works to encourage the implementation
of efficiency measures. Our December 2008
submission identified a total of 96 projects,
representing savings of some 96,000GJ or
8.8 per cent of total energy usage. Specifically
considering F2009, between the St Ives and
Agnew mine sites, a total of 21 of these projects
were considered, with an overall implementation
capital cost of A$8.3 million and an annual
payback of A$1.8 million.
The progress on energy efficiency projects
has been greatly assisted by the appointment
of energy officers at both St Ives and Agnew,
which has leveraged off the existing continuous
improvement systems.
A large focus in Australia has been the release
of draft legislation for the Carbon Pollution
Reduction Scheme (CPRS) in May 2009. This
legislation is now planned to commence 1 July
2011. The CPRS is currently designed as a
Cap and Trade scheme, whereby a carbon
permit will be required for each tonne of CO2
equivalent emitted, with the price fixed in the
first year at $A10/tonne CO2, after which the
cap is lifted to A$40/tonne CO2. Gold Fields
Australia has formed part of a gold industry
collective, constituting approximately 80 per
cent of Australia’s gold production, which
submitted an application to the government to
be included as one of the industries to obtain
a proportion of free carbon permits under the
scheme. Free carbon credits can be issued if
the industry complies with certain requirements
under the scheme.
The CPRS scheme will allow the import of
certain carbon units. This allows us to look to
the global platform on which we operate for
opportunities.
Renewable energy options
to supplement
gas fired power were also progressed for the
Australian operations, with a wind resource
survey to be commissioned on Lake Lefroy at
St Ives and solar power options covering the
TSF2 area progressed at Agnew. We intend to
make use of recently announced government
incentive programmes to assist progression of
these projects.
In Ghana, a South African based company,
Powertech IST Otokon, completed energy
efficiency workshops and project evaluations
for the Tarkwa and Damang operations during
January 2009. The resultant report for the
Tarkwa mine contains a total of 23 projects, of
which 10 are viable based on initial estimates.
These projects account for predicted annual
savings of 32,500GJ. Final reports for the
Damang mine are expected in early F2010.
In addition to this, the option of using locally
produced biodiesel, mixed with standard diesel
and back-up power supply options for the
Tarkwa CIL plant, are being evaluated. Longer-
term gas fired power options, possibly through
a gold industry consortium, will be explored
further in F2010.
Energy saving requirements and alternative
technologies are also included in the current fuel
and lubricants tender process that covers both
the Australian and Ghanaian operations.
The
following
performance with
consumption.
tables
report
respect
the Group’s
energy
to
Alien vegetation eradication
project at Kloof Gold Mine
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continued
Energy consumption
F2008
F2005
F2007
F2006
F2009
CO2 Emissions*
Driefontein
Kloof
Beatrix**
South Deep
Tarkwa
Damang
St Ives
Agnew
The South African operations’ reporting methodology has been aligned with international best practice.
**The coal usage at Beatrix was 15,087 tons compared to 16,572 tons in F2008 and has been included in the
CO2 calculations above.
1,667,846
1,590,582
820,304
n/a
155,525
96,212
224,364
71,405
1,430,226
1,414,382
759,494
449,659
194,308
54,361
256,598
56,463
1,630,536
1,539,977
831,701
n/a
110,594
39,240
187,754
59,401
1,668,806
1,644,755
811,311
n/a
130,665
55,988
207,591
67,913
1,504,457
1,527,282
798,207
473,419
192,340
78,492
240,472
58,166
Electricity (MWh)
F2009
F2008
F2007
F2006
F2005
1,727,046
Driefontein
1,751,495
Kloof
889,657
Beatrix
540,583*
South Deep
214,306
Tarkwa
89,628
Damang
191,369
St Ives
Agnew
54,379
*South Deep’s electricity consumption for F2008 has been adjusted to reflect the alignment of South Deep’s reporting standard with
the Group’s reporting standard
1,874,000
1,766,000
953,000
n/a
163,000
108,000
148,000
46,000
1,904,075
1,833,957
863,460
n/a
200,282
87,606
192,248
51,472
1,910,100
1,887,032
931,533
n/a
202,641
107,006
187,037
48,121
1,641,441
1,623,314
848,034
511,355
250,270
105,206
188,899
52,604
Electricity (TJ)
Driefontein
Kloof
Beatrix
South Deep
Tarkwa
Damang
St Ives
Agnew
Diesel (TJ)
Driefontein
Kloof
Beatrix
South Deep
Tarkwa
Damang
St Ives
Agnew
Petrol (TJ)
Driefontein
Kloof
Beatrix
South Deep
Tarkwa
Damang
St Ives
Agnew
F2009
5,909
5,844
3,063
1,863
901
379
680
189
F2009
87
88
50
82
2,319
582
1,297
159
F2009
6.2
4.9
4.8
2.5
1
–
5.8
0.1
F2008
6,217
6,305
3,202
2,345
766
317
688
196
F2008
86
109
58
61
2,331
913
1,043
152
F2008
8
7
5
2.5
1
–
5.4
0.1
Liquid Petroleum Gas (TJ)
F2009
F2008
Driefontein
Kloof
Beatrix
South Deep
Tarkwa
Damang
St Ives
Agnew
6.0
2.3
–
0.9
4.0
76.5
16.3
12.2
3.7
3.1
–
–
4.7
89.7
40
19.4
F2007
6,854
6,602
3,108
n/a
721
315
696
185
F2007
85
90
58
n/a
1,855
1,166
811
367
F2007
10.65
5.35
5.82
n/a
0.6
–
3.0
0.25
F2007
5.85
3.0
–
n/a
3.8
57
33
21.6
F2006
6,876
6,793
3,353
n/a
729
385
672
173
F2006
160
110
44
n/a
1,519
583
654
361
F2006
9.42
5.45
5.43
n/a
0.5
–
4.0
0.35
F2005
6,740
6,360
3,430
n/a
590
380
530
160
F2005
66
113
66
n/a
1,300
370
825
271
F2005
10.2
4.8
7.3
n/a
0.7
–
3.6
0.3
F2006
F2005
4.2
3.2
–
n/a
6.1
80.3
39.1
21.7
3.87
2.4
–
n/a
5.1
112
37.6
15.5
Near mine exploration aims to increase the life of
an operation and adheres to strict environmental
protocol
Land management and biodiversity
The South African operations are represented
on the South African Mining and Biodiversity
Forum (SAMBF). The SAMBF was established
in 2005 to provide a platform for cross-sectoral
interaction and co-operation in order to improve
biodiversity conservation and management in
the mining sector. A review status report on
biodiversity management that was recently
published, identified the need for a guideline
document specific
the South African
to
mining sector. The SAMBF has compiled
draft guidelines incorporating local biodiversity
information and best practices specific to
South Africa. During the year the operations
have focused on biodiversity assessments
around sensitive areas which included caves
and sinkholes.
In our last annual report we provided an
overview of the Leadership for Conservation
in Africa (LCA). The initiative, of which Gold
Fields was the founding sponsor, seeks to
pursue socio-economic development through
conservation on the African continent. Ghana
is very active within the LCA and considering
our footprint in the country, we are actively
supporting conservation bodies within the
country. In partnership with the Ghanaian
government, we are leading a potential project
on the Cape coast of Ghana that will contribute
to the conservation of biodiversity and socio-
economic benefits to local communities.
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Waste management:
Tailings to dams (tons)
F2009
F2008
F2007
F2006
F2005
Driefontein
Kloof
Beatrix
South Deep
Tarkwa
Damang
St Ives
Agnew
3,474,719
2,753,429
2,991,200
1,398,005
5,006,738
4,083,312
4,821,330
2,849,747
3,839,620
3,485,680
3,212,600
5,212,090
4,979,019
3,695,229
4,647,818
2,851,660
9,779,083
3,710,101
3,590,000
n/a
5,230,888
5,269,310
4,669,446
3,226,978
6,592,996
3,681,623
3,540,324
n/a
4,686,966
5,327,955
4,567,611
3,161,159
6,534,000
5,128,000
4,118,000
n/a
3,190,000
5,215,000
3,753,000
1,170,000
Waste rock to rock dumps (tons)
F2009
F2008
F2007
F2006
F2005
Driefontein
Kloof
Beatrix
South Deep
Tarkwa
Damang
St Ives
Agnew
264,568
921,604
597,714
0
56,119,157
15,057,505
9,075,024
153,416
464,996
1,101,623
1,091,543
105,447
89,096,834
29,433,351
12,323,842
425,609
559,946
1,120,821
934,439
n/a
82,168,348
28,109,727
5,210,789
18,234,119
319,783
473,371
731,738
n/a
74,353,234
21,427,370
17,028,304
14,254,210
385,000
625,000
722,000
n/a
61,666,000
9,050,000
20,360,000
2,060,000
Cerro Corona not included as it has not operated for a full 12 month period.
Cyanide Management Code status
Region
South Africa
West Africa
Australia
Suppliers
Ghana
Australia
Operation
Driefontein
Kloof
Beatrix
South Deep
Tarkwa
Damang
St Ives
Agnew
Certification status
Substantial compliance 8 April 2009
Substantial compliance 30 July 2009
Full compliance 21 July 2009
Full compliance 1 April 2009
Full compliance 4 June 2008
Full compliance 8 May 2008
Full compliance 5 August 2009
Substantial compliance 3 June 2009,
full compliance expected by end
September 2009
Orica and Barbex Technical
Services Limited
Australian Gold Reagents
Pty Limited
16 November 2007
Certified 9 October 2007
South Africa
Sasol
8 March 2007
Closure
As per our requirements in the closure practice guide, we have again reviewed our closure costs for
all Regions. These costs are reflected in the table below:
Closure provision
2009
2008
Driefontein
Kloof
Beatrix
South Deep
Tarkwa
Damang
St Ives
Agnew
Cerro Corona
R604 million
R458 million
R276 million
R171 million
R514 million
R391 million
R226 million
R155 million
US$40 million US$30 million
US$5 million
A$73 million
A$18 million
US$36 million US$34 million
US$6 million
A$74 million
A$18 million
These costs are before accounting adjustments, which include compounding and discounting the above amounts
at appropriate rates. As at 30 June 2009, the accounting value was R2,267.9 million.
As mentioned previously, in accordance with
our environmental framework, we are in the
process of developing a biodiversity practice
guide that aims to provide the operations
with practical guidance with regard to the
management of biodiversity. This practice guide
has been drafted and is currently subject to
internal review.
Waste management
Waste management remains an area of focus
in our environmental management systems. We
have protocols in place to ensure that waste
is dealt with effectively and responsibly and
that recycling opportunities are realised and
maximised. Our environmental management
systems require that any employee that may
impact on the environment by virtue of their
activities, undergo the necessary training. Our
systems utilise two forms of training, these
being awareness and competence training.
The requirement for awareness training is
satisfied through our induction programmes
where employees returning from annual leave,
new employees, and contractors, are exposed
to varying levels of environmental training.
Competency training is more specific and
requires detailed training for specific tasks.
Records are kept of all environmental training.
Relevant employees are required to undergo
training as to the requirements of the waste
protocols to ensure that all waste is handled
responsibly and disposed of in accordance
with procedural arrangements. Such protocols
typically include potentially hazardous waste,
domestic waste and recyclable waste.
is
from our
The greatest stream of waste
operations
Intensive
tailings material.
systems have been implemented for tailings
management and have been integrated into
the environmental management systems
and therefore tailings facilities are covered by
our ISO14001 certifications and procedural
arrangements where applicable, with the prime
intent of managing any associated potential
impacts. Furthermore, our tailings facilities
are governed under our commitment to the
Cyanide Code and as such are integrated
into our environmental management systems.
Generally, tailings management can be broken
down into three areas. These are:
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ensure daily inspection of all tailings delivery
infrastructure to ensure that any failures are
detected immediately and rectified before any
significant environmental impact can occur.
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SUSTAINABLE DEVELOPMENT
continued
Associated with this is the necessary spillage
infrastructure. Under the requirements of
the Cyanide Code, further fortifi cations have
been made to all our installations;
impacts,
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of primary concern are tailings stability,
dust management and water containment.
A host of actions are deployed to manage
these
including the concurrent
rehabilitation of tailings facilities to alleviate
impacts associated with
any potential
aesthetics or dust, extensive monitoring
networks that are reviewed externally by
professional engineers to ensure the integrity
of the structures, the use of numerous
types of drainage facilities to contain water
on site, extensive monitoring systems
to ensure adherence to Cyanide Code
requirements, committees established to
oversee and monitor management of the
sites, geohydrological studies to determine
whether any potential
for contamination
exists and regular reporting to the Safety,
Health
and Sustainable Development
Committee on the status of the management
of the facilities; and
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equipped with return water facilities to ensure that
water on the structures is contained in a closed
circuit and returned to the gold processing plants
for re-use. Return water facilities conform to best
practice and Cyanide Code requirements and
also provide buffering capacity for large rainfall
events. Pipelines conveying return water to the
processing facilities are inspected regularly and
also have the necessary spillage containment
structures. Water balances are utilised to
manage the process.
Governing all of the above are the necessary
procedures required in terms of our ISO14001
certifi cation.
At Cerro Corona, we have implemented an
advisory committee consisting of external
experts
tailings
to review all aspects of
dam construction and management. This
committee was created to ensure best practice
and to provide insight into leading practice from
around the globe. Activities that are reviewed
by
from
construction to tailings placement to water
quality and quantity.
this advisory committee
range
Cyanide management
Gold Fields
the
International Cyanide Management Code.
Beatrix and South Deep have been certifi ed with
remains committed
to
full compliance, while Driefontein and Kloof are
substantially compliant. Plans are also in place to
upgrade Driefontein and Kloof.
developed and approved by the Board of
Directors for material stewardship and supply
chain management.
Tarkwa and Damang have been certifi ed with
full compliance to the code and this has been
maintained.
In accordance with the audit
protocol, St Ives and Agnew have progressed
initiatives to upgrade their certifi cation from
substantially compliant to full compliance and
are preparing for an audit on their commitments
in the coming fi nancial year.
The Tarkwa closure provision has increased due
to a higher footprint through the construction
of the CIL plant, increase in the heap leach
footprint, increase in tailings storage footprint
and an increase due to pit shell design
associated with a higher price, which increases
the amount of pit and waste rock rehabilitation.
The Damang provision has increased due to
the commencement of mining at the Rex pit.
The St Ives provision has increased as a result
of infl ation, but there is a relative decrease as
a result of concurrent rehabilitation that was
undertaken during the year. The Cerro Corona
provision also increased in line with infl ation as
the design criteria have not changed nor has
the footprint of the mine.
Fines and legal actions
During F2009, no signifi cant fi nes or non-
compliance actions were levelled against the
company.
MATERIAL STEWARDSHIP
AND SUPPLY CHAIN
MANAGEMENT
During the fi rst half of fi nancial year 2009 and
in alignment with the new Group Sustainable
Development Framework, a Group policy was
The overall philosophy in our dealings with
external business partners and vendors is
governed by the Gold Fields Group ethics
policy and approval framework, which provides
a common set of corporate governance
guidelines.
The vision and intent of the integrated supply
chain and material stewardship policy is, inter
alia, to:
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to adopt sustainable development practices;
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in a manner that is responsible with due
regard to environmental, social, health and
safety considerations; and
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community development.
and
cost,
quality
vendor
Continuous
performance improvement initiatives for F2009
delivered very good results from a high infl ation
claw-back perspective. Total
cumulative
contracted benefi ts
the fi nancial year
for
achieved more than R100 million (South Africa)
and US$20 million (international) contracted
pricing claw-back benefi ts from the record high
peak prices recorded at the end of 2008. The
main benefi t is that the pricing baselines have
been re-set to refl ect the global economic
downturn and have not been fi xed at the
high end. The total cost and infl ation claw-
back strategy of this last year will shift more
clearly during the next year towards a strong
focus on enhanced productivity and effi ciency
management.
Manage Supply Chain Relationships
Supply Chain
Forecast
Strategy
& Plan
Source
Supply
Settle
Produce
Develop &
Maintain
Distribute
Supply Chain
& Dispose
Performance
Manage Supply Chain Infrastructure
Organisation, Skill &
Culture
Information Systems and
Technology
Facilities
and Equipment
Value leakage focus areas
Price / Cost
Inventory
& Price
Price, Total
Cost & Life
Inbound
Logistics
Discounts
Inventory &
Usgae
Revenue &
Productivity
Distribution
Costs &
Cycle Value
Cost
Wastage
Losses
Salvage Value
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Although existing practice dictates that formal
contracts cover key compliance, quality and
commercial requirements and terms, moving
forward it is important that more clarity and a
shared understanding on risk exposures and
‘green procurement’ requirements is achieved
and that an objective measurement model is
refined to be able to evaluate status and guide
priority focus in this space.
local supplier/vendor/community
Continued
development has shown good progress to
date in areas like grinding media, general
consumables and services in Ghana and in
Peru. South Africa continued achieving required
BEE procurement targets and Australia has
consistently been largely locally supported and
aligned.
For South Africa our policy objective is to identify
and approve Historically Disadvantaged South
African (HDSA) suppliers, increase the level of
spend to previously disadvantaged individuals
and to increase business opportunities and
set targets for HDSA procurement spend.
When application is made for registration on
our database we evaluate the following criteria:
ownership, black empowerment status, and
size of enterprise relating to turnover and staff.
Should an HDSA vendor not qualify as a result
of safety, quality or service, Gold Fields will, at
its discretion, support and develop the supplier
to be able to meet our criteria as set out in the
Gold Fields Policies and Procedures.
By the end of financial year 2009, South African
for R2.32 billion
HDSA spend accounted
(42 per cent) of working cost and capital spend.
We have increased our HDSA vendor data base
from 558 vendors in F2008 to 639 vendors in
F2009. In addition we have introduced more
advanced training courses this year. They
include an improved entrepreneurship, Excel
and Word training and finance for small and
BEE entrepreneurs and suppliers.
In Ghana, local supply strategic partnerships
have been further developed in the area
of grinding ball manufacturing and supply.
A new exploration drilling and extended haulage
local partnership has also been established.
Apart from the on-site Tarkwa tyre retread facility
that was commissioned during F2008, an on-
site emulsion plant was also commissioned
through a joint venture towards the end of F2008
as part of a new long-term guaranteed supply
of emulsion and logistics cost optimisation plan.
Damang continued with local and community
support with regard to general consumables
purchasing and scrap sales.
In Peru, the major source of semi-skilled labour
(and sometimes skilled labour) and service
provision is through “Direct Influence Area”
companies. This is an initiative designed to
ensure benefit for the local communities and
economy throughout the development of the
mine and continuing through the operational
phase of the mine. During the year significant
spend support was invested into 62 local and
community companies providing services
to the mine in three main categories: heavy
equipment, light vehicle trucks and general
services. Part of this strategy requires training
for the local companies to ensure that the
companies optimise, and to provide a better
understanding of quality and client satisfaction
concepts.
In Australia, local supply partnerships and
continuous improvement initiatives with mining
contractors received priority focus with good
cost savings and quality mining results and
benefits flowing through. Major investments
were also made in the new Kambalda airport
and upgrades
in accommodation across
Kambalda and Leinster townships.
In terms of the issue of the lifecycle analysis
of gold, fortunately, gold is a highly beneficial
product to society in that it remains one of
the main drivers of the global economy. The
other important use of gold is for jewellery.
Gold is not a harmful product and is actually
used in medicinal applications for combating
cancer. Gold also has numerous applications
in environmental technology where it is used
in water treatment and more recently, is being
investigated for use in catalytic converters
for the combating of harmful emissions from
vehicles. Gold is benign to human health and
in some cultures, gold is even eaten or is
used for decorations on food. As a result, our
focus remains on the production of gold from
exploration to final product, in a manner that is
responsible and sustainable.
We also take the concept of stewardship
further than just our product and hence we
refer to materials stewardship within our policy
frameworks. The rationale behind this is that as
part of normal operations, we do procure large
quantities of materials as well as dispose of
waste materials. In this regard, our ISO14001
and OHSAS18001 management systems come
into play and govern any materials brought
onto site and ensure that they are managed
and handled responsibly. Measures put in
place for this include transporting contracts,
offloading procedures, storage procedures and
facility requirements, emergency preparedness
and response and disposal. The disposal
of materials is governed primarily by our
ISO14001 systems that incorporates waste
management procedures. These procedures
deal with all types of waste as well as the
training of relevant personnel to ensure that
such procedures are deployed correctly. In
terms of disposing of any potentially hazardous
materials, where possible we recycle materials
such as hydrocarbons, old chemical containers
and the like. Where no recycling method exists,
we dispose of potentially hazardous materials
to companies specialising in the safe disposal
of such materials and we retain safe disposal
certificates. Some materials such as screenings
obtained from water treatment plants are
required to be incinerated and procedures are in
place to ensure that incineration is undertaken
responsibly and in accordance with relevant
regulations. All of the above is subject to regular
audits undertaken by external auditors as part
of our usual certification audits for ISO14001
and OHSAS18001.
SOCIAL RESPONSIBILITY AND
STAKEHOLDER ENGAGEMENT
South Africa Region
At Gold Fields, we believe that people are
our business. This belief is central to our 24
Hours in the Life of a Gold Fields Employee
Programme (24 Hours Programme); our holistic
approach to the promotion of work-life balance.
South Deep Mine fully upgraded and refurbished the
library at Modderfonten Primary School. A computer
centre was established at the library in conjunction
with the Department of Social & Labour
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SUSTAINABLE DEVELOPMENT
continued
Key aspects of this programme include the
promotion of safety, learning opportunities,
balanced nutrition, improved accommodation,
health, sport and recreation. These ingredients
underpin our Social and Labour Plans, which
makes our approach a sensible way of
conducting our business rather than a matter of
compliance to regulatory requirements.
During the past year, learning opportunities
were granted to employees and members of
local mining and labour sending communities.
These included the provision of bursaries,
study grants and loans as well as learnerships
and internships. Our programme of providing
decent living conditions gained momentum
in F2009 with the completion of 181 family
homes at integrated communities of Blybank
and Glenharvie on the West Rand. At the same
time, renovations of hostel rooms are underway
and will result in employees living in single sex
hostels being accommodated in better facilities
Grade 12 maths and science learners from four local
schools that attend Saturday classes financed by
Kloof Gold Mine
with more privacy. In F2009, 421 units were
completed as part of this upgrade programme.
As part of the 24 Hours Programme, employees
are able to fulfil their spiritual and recreational
needs through a variety of activities run at
churches and other social amenities available at
the operations. Employees at all our operations
receive well-balanced meals that are prepared
in accordance with acceptable national and
international standards.
to people was
further
Our commitment
demonstrated
through our procurement
programme. During F2009 we increased the
number of HDSA vendors from 558 in the
previous reporting period to 639 this year. In
the same period, HDSA vendors accounted
for 44 per cent of the procurement spend by
Driefontein, Kloof and Beatrix. These mining
operations worked in partnership with local
municipalities to identify and build capacity
among SMMEs from local mining communities.
By the end of the financial year, 95 SMMEs
received training from the Thusanang Training
Centre based at Driefontein Gold Mine.
We are firmly committed to living our values
and will pursue our goal of improving the living
and nutritional needs of our employees. We are
on track to meet our housing targets and have
exceeded industry based nutritional guidelines.
The company has positioned safety as its
number one value and continues relentlessly
in its pursuit of zero harm, meaning no fatal
or serious injuries to any of its employees.
However, the company also recognises that the
loss of life in a mining accident has significant
and tragic impact on the family and dependants
of the employee who, in many cases, is the
primary income earner.
In order to alleviate the financial burden on
the family, the company has established the
following initiatives when an employee dies in
a mine accident or is medically incapacitated:
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family member for permanent employment on
that particular mine. The process is facilitated
by TEBA and the company only requires an
affidavit from the family to reflect consensus
on the decision.
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the educational needs of the school-going
children of employees deceased in a mine
accident. The annual allowance is R1,600
per child and is intended to cover the cost of
school fees, books and uniforms for children
to Grade 12, irrespective of the number of
children per family. The company is currently
reviewing the policy and considering a
partnership with TEBA to assist in the
administration of the programme, with a view
to improving the process so that the intended
recipients benefit from the programme.
towards
Local economic development
Gold Fields’ mining operations each made
considerable
the
investments
development of communities directly affected
by mining activities in the host communities
and those in the labour sending communities.
The success of
these community based
initiatives stems from leveraging partnerships
with local communities and district municipalities
in both host communities and labour source
communities. Due to the distinct nature of the
host communities and labour sending areas, a
two pronged approach has been adopted by
the South Africa Region. Each of the mines are
responsible for local economic development
programmes in host communities adjacent to
it and has accordingly made adequate financial
provision for projects aimed at community
upliftment and poverty alleviation. Since the
traditional
labour source communities are
based in rural areas, TEBA Development was
contracted to manage six rural development
projects in the Eastern Cape and KwaZulu Natal.
The engagement with organised labour and
the Department of Mineral Resources during
this year was significantly more regular and
focused on critical human capital developments
in the company. Our objective is to build on this
foundation and to use our engagement model
to its fullest extent by leveraging all interfaces
with all our stakeholders inside and outside the
company.
Host communities
to support and
The operations continued
participate
Integrated
in the review of the
Development Plans of the local municipalities that
are directly affected by their respective activities.
Kloof Gold Mine approved: (i) the Community
Adult Basic Education and Training (ABET)
programme, (ii) funding for a maths and science
improvement programme, and (iii) creating
employment for 66 members of the local mining
community
through a project established
to eradicate alien vegetation on the mine’s
property.
A feasibility study for the establishment of a
clinic at the Simunye township in the Westonaria
Municipality was finalised. R5 million was
approved for the construction of the clinic in
partnership with the local municipality and the
Provincial Department of Health.
South Deep Gold Mine continues to provide
much needed meals to needy children at the
local school and the library is proving to be a
useful resource for the community. Senior mine
officials also made a valuable contribution
through teaching mathematics and science
once a week. Students who participated in
these lectures obtained improved pass marks.
Beatrix Gold Mine, in partnership with the local
municipality, has approved the establishment
of a brick making plant for the benefit of
the local community. The mine will provide
finance for capital items and raw material
while the municipality will be responsible for
water and electricity. This project will have a
direct socio-economic benefit as it will result
in job creation, skills development and poverty
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Project
Elundini Livestock
Improvement
Programme
District municipality
and province
Ukhahlamba – Eastern
Cape
Alfred Nzo Agriculture
Development Project
Alfred Nzo – Eastern
Cape
Mbhashe Livestock
Support Project
Amathole – Eastern
Cape
Qaukeni and Mbizana
Abalimi Phambili
Project
OR Tambo – Eastern
Cape
Beneficiaries
Actual spend
2,979 farmers
R1.2 million
2,459 farmers
R0.9 million
692 farmers
R0.6 million
2,550 farmers
R1 million
Jozini Abalimi Phambili Mkhanyakude –
538 farmers
R0.5 million
KwaZulu Natal
alleviation. The Golden Oils project continues to
operate successfully. Four hectares of gladioli
bulbs were harvested in June for export to
Holland. The plan is to expand the farm to
eight hectares during the next financial year.
There is also the possibility of concluding a
new offtake agreement for additional bulbs
with the main clients in Holland. The evaluation
of summer and winter indigenous bulb trials
continues to yield positive results and the
multiplication of genetic material has started.
Driefontein Gold Mine’s construction of the
Letsatsing primary school was completed and
handed over to the Department of Education
in August 2009. The school caters for children
from communities in the vicinity of the mine.
Twenty bursaries were allocated to Grade 11
and 12 students who excel in mathematics and
science at the Carleton Jones High School in
Carletonville.
The Living Gold project continues to operate
with ongoing support from Gold Fields and
237 people are permanently employed,
following an investment of R130 million over six
years.
A contract was allocated to a local company
to undertake environmental remediation work
during this year. The contract was in excess of
R5 million and provided employment for more
than 20 people for an extended period.
project
improvement
Labour sending areas
The
is
livestock
implemented in five district municipalities in
the Eastern Cape and KwaZulu Natal, in more
than one hundred villages. The programme
has empowered thousands of local small-scale
subsistence farmers and created a tangible
benefit to sustainable economic development
and poverty alleviation.
The livestock project operates on a cycle of village
visits which are conducted at regular intervals and
are guided by seasonal animal health needs. The
project uses experienced farmers as mentors who
provide support to inexperienced farmers on a
number of farming related activities and decisions.
Participation in the project is voluntary and
mentors work with locally employed enumerators
who provide logistical and administrative support
to the mentors.
By instituting well managed animal health
services through a mentorship approach, it
is possible to build up farmer-led sustainable
livestock
self-
employment and production.
thus boosting
support,
The table above provides a summary of the
various initiatives that the South Africa Region
is supporting in its endeavour to stimulate local
economies, to assist local farmers in securing
linkages to markets, and to build technical
capacity for efficient, effective and sustainable
farming practices in the labour sending areas.
As part of our social responsibility and in
response to the challenge posed by HIV and
Aids, the South Africa Region was instrumental
The Letsatsing Combined School was built by Gold
Fields at a cost of R16 million and then handed over to
the Department of Education
in supporting the Mine Home Based Care
Project, another initiative managed by TEBA
Development. This project comprises a network
support structure for repatriated mine workers
and their families. The project has benefited
380 former Gold Fields employees or members
of their families in the Eastern Cape, Free
State, KwaZulu Natal, Mozambique, Swaziland
and Lesotho. Services include emotional and
financial support to widows and orphans which
is rendered in partnership with government
departments.
and
labour
organised
departments
labour,
other
Relationship with
government
stakeholders
Relations with
have
organised
improved and matured substantially with the
National Union of Mineworkers
leadership
participating actively in debates on human
restructuring and Safe Production
capital
Management strategies. Gold Fields’ senior
leadership was invited by the new Minister of
Mineral Resources to participate in discussions
on illegal mining challenges that are facing the
country. In line with the resolution to merge the
Mineworkers Development Agency and TEBA
Development from the last wage negotiations,
Gold Fields has continued to participate actively
in the merger task team. A Memorandum of
Understanding was signed by the boards of the
two organisations to ensure that a final decision
is made as soon as possible.
West Africa Region
In Ghana, the Group continues to consolidate
its commitment to sustainable development
through the implementation of a range of
carefully selected projects and effective
stakeholder engagement. The Gold Fields
Ghana Foundation, a charity registered by
the Department of Social Welfare of the
Government of Ghana, provides us with a
vehicle for community investment in the region.
The SEED programme is in its third year of
existence. SEED is an acronym for Sustainable
Community Empowerment and Economic
Development. It is a high impact, results focused,
sustainable integrated community development
programme that focuses on economic growth,
wealth creation, quality of life improvement and
empowerment
through education, capacity
building and infrastructure development.
During the year under review the Foundation
approximately US$2 million
committed
to ensure
that our primary stakeholder
communities benefited directly from the growth
and success of the company’s operations.
86
86
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
SUSTAINABLE DEVELOPMENT
continued
Australasia Region
the Gold Fields Australia
In Australia,
Foundation contributed A$848,700
to a
range of community projects. The Foundation
fi nalised its A$1,000,000 commitment to the
the Kambalda Recreation
construction of
Centre with a fi nal payment of A$330,000.
South America Region
In Peru, we are extending and maintaining our
current initiatives in the local communities.
A positive new development in this regard
has been the commencement of a three year
development programme in the Hualgayoc
Province
the Clinton
Foundation. We intend to provide more detail
on this in the next annual report as this initiative
has only commenced in the closing month of
this fi nancial year.
in partnership with
The application of community relations in
Peru has been largely informed by extensive
stakeholder engagement in the region to ensure
that all initiatives are informed by community
needs and have the support of all stakeholders.
In terms of the provision of access to essential
services, we have completed the construction
and handover of a school in the Tingo Valley.
We have also completed the construction of
the health centre at Pilancones. Another activity
that we have embarked on is to further the
access to electricity in the area as prior to our
presence in the area, the infrastructure simply
did not exist.
With regard to the deployment of agriculturally
based development, we have previously
reported our support of the pasture programme,
the dairy programme and the blueberry project
and we continue to support these projects.
With regard to community health interventions
and concerns, we have embarked on a process
of assisting community members with setting
up guinea pig farms. To date we have set up
some 120 guinea pig farms in partnership
with the local community around the Cerro
Corona mine and this initiative is proving to be
successful. These projects provide families with
valuable sources of nutrition.
The high incidence of respiratory disease
and ailments prevalent at the high altitude
communities around the Cerro Corona mine
is exacerbated by the use of wood fi res for
domestic purposes. We have embarked on a
project with the local community to improve
kitchen facilities within homes that will eliminate
the health problems associated with wood
fi re smoke in homes, mitigate posture related
problems and also reduce the use of wood for
cooking purposes. We have now completed
some 160 improved kitchen facilities in the local
communities.
CONCLUSION
The Sustainable Development Framework that
Gold Fields has developed and is currently
to an
implementing has been subjected
assurance audit. This audit has been done in
accordance with AccountAbility’s AA1000AS
(2008) assurance standard.
The result of the audit has indicated that this
report adequately represents the sustainability
performance of Gold Fields.
The Independent Assurance Statement can be
found overleaf.
The programme, which was conceived in
response to the need to improve the quality of
life of 30,000 men, women and children in our
16 primary stakeholder communities by 2010,
continues to achieve positive results through
its focus on four thematic areas namely;
agricultural livelihoods, education, health and
sanitation and programme sustainability. The
programme objectives are fourfold, namely:
(cid:115)(cid:0) (cid:0)(cid:52)(cid:79)(cid:0)(cid:73)(cid:78)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:69)(cid:0)(cid:73)(cid:78)(cid:67)(cid:79)(cid:77)(cid:69)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:69)(cid:67)(cid:79)(cid:78)(cid:79)(cid:77)(cid:73)(cid:67)(cid:0)(cid:65)(cid:67)(cid:84)(cid:73)(cid:86)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)
4,000 households in the primary stakeholder
communities;
(cid:115)(cid:0) (cid:0)(cid:52)(cid:79)(cid:0) (cid:73)(cid:77)(cid:80)(cid:82)(cid:79)(cid:86)(cid:69)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:72)(cid:69)(cid:65)(cid:76)(cid:84)(cid:72)(cid:0) (cid:83)(cid:84)(cid:65)(cid:84)(cid:85)(cid:83)(cid:0) (cid:79)(cid:70)(cid:0) (cid:19)(cid:16)(cid:12)(cid:16)(cid:16)(cid:16)(cid:0)
stakeholder
the primary
residents
in
communities;
(cid:115)(cid:0) (cid:0)(cid:52)(cid:79)(cid:0) (cid:73)(cid:77)(cid:80)(cid:82)(cid:79)(cid:86)(cid:69)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:76)(cid:69)(cid:86)(cid:69)(cid:76)(cid:0) (cid:79)(cid:70)(cid:0) (cid:69)(cid:68)(cid:85)(cid:67)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0) (cid:65)(cid:78)(cid:68)(cid:0)
livelihood skills of 5,000 youths and
adults living in the 16 primary stakeholder
communities; and
(cid:115)(cid:0) (cid:0)(cid:52)(cid:79)(cid:0) (cid:69)(cid:78)(cid:83)(cid:85)(cid:82)(cid:69)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:83)(cid:85)(cid:83)(cid:84)(cid:65)(cid:73)(cid:78)(cid:65)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0) (cid:79)(cid:70)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:51)(cid:37)(cid:37)(cid:36)(cid:0)
long-term
interventions
for
programme
results and impact.
One major challenge to large scale mining in
Ghana is the activities of Artisanal and Small-
scale Mining (ASM). In pursuit of long-term
solutions, Gold Fields Ghana is collaborating
with other mining companies (within the Ghana
Chamber of Mines), the government of Ghana
and the ICMM. Gold Fields Ghana played a
leadership role in a recent ICMM workshop
organised in Elmina in Ghana to encourage
dialogue on the issue. To date all of our
interactions with artisanal miners have proven to
be most successful and we remain committed
to fi nding sustainable solutions to the issue.
In Ghana, soccer is strongly believed to be “the
passion of the nation”. This underscores the
strategic importance of the Gold Fields Ghana
headline sponsorship of the national soccer
team, the Black Stars. This sponsorship was
renewed in 2008.
We have maintained our focus on stakeholder
engagement and have strengthened our
relationships at
the national and regional
governmental levels through regular meetings
with ministers and other senior level government
offi cials to discuss various issues of mutual
interest. At an operational level, we continue
to improve and fortify our relationships with
our communities through our open door policy
and the more formal quarterly Community
Consultative Community Meetings (CCCM). In
addition, we have held review sessions with
the chiefs and opinion leaders in our local
communities with the prime intent to review the
performance of our programmes.
S
e
c
t
i
o
n
2
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G
o
b
a
l
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e
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o
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t
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e
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
87
Global Reporting Initiative Reference Table:
PROFILE DISCLOSURES
STRATEGY AND ANALYSIS
pp 4 - 7, 13 - 19
pp 1- 3, 58 - 59
ORGANIZATIONAL PROFILE
FC
pp. 1 - 3, 20 - 56
pp. 20 - 56
p. 143
pp. 1, 20 - 21
p. 1
pp. 1 - 3, 20 - 56
pp. 1 - 3, 64 - 68
pp 4 - 15, 59 - 63
p. 58
REPORT PROFILE
p. 1
pp. 3, 4, 75
pp. 3, 4
p. 61
1.1
1.2
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9
3.10
3.11
REPORT SCOPE AND BOUNDARY
pp. 58 - 59
p. 1
p.2, 76, throughout
pp. 20 - 56
pp. 75 - 76
pp. 76
pp. 39 - 40
GRI CONTENT INDEX
3.12
pp. 87
ASSURANCE
3.13
pp. 89 - 90
GOVERNANCE, COMMITMENTS AND
ENGAGEMENT
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11
4.12
4.13
pp. 16 - 19, 59 - 63
pp. 59 - 60
pp. 59 - 60
pp. 61, 64, 143
pp. 61 - 63
pp. 64 - 65
pp. 61 - 63
pp. 7, 59, 64
pp. 58 - 63, 69 - 70
pp. 60 - 63
COMMITMENT TO EXTERNAL
INITIATIVES
pp. 60 - 63
pp. 58 - 59
pp. 59 - 62
STAKEHOLDER ENGAGEMENT
ECONOMIC
CORE
ADDITIONAL
ECONOMIC PERFORMANCE
SOCIAL (CONTINUED)
CORE
ADDITIONAL
OCCUPATIONAL HEALTH AND SAFETY
EC1
EC2
EC3
EC6
EC7
EC8
EN1
EN3
EN4
pp. 83 - 86
pp. 68 - 70, 76
pp. 64 - 68
MARKET PRESENCE
pp. 82 - 83
pp. 64 - 66,
82 - 83
INDIRECT ECONOMIC IMPACTS
pp. 83 - 86
EC9
ENVIRONMENTAL
MATERIALS
pp. 75 - 81
pp. 76 - 80
pp. 76 - 80
ENERGY
EN5
EN6
EN7
WATER
EN8
pp. 77 - 79
pp. 68 - 70,
82 - 86
pp. 76 - 80
pp. 76 - 80
pp. 76 - 80
pp. 77 - 79
EN9
BIODIVERSITY
pp. 78 - 81
pp. 78 - 81
EMISSIONS, EFFLUENTS AND WASTE
EN14
pp. 78 - 81
pp. 80
pp. 80
pp. 77 - 79
pp. 81 - 82
pp. 77
EN18
pp. 79 - 80
EN25
pp. 79 - 81
PRODUCTS AND SERVICES
pp. 75 - 82
pp. 82
COMPLIANCE
SOCIAL
EMPLOYMENT
pp. 64 - 66, 68
LABOR/ MANAGEMENT RELATIONS
pp. 64 - 68
EN11
EN12
EN16
EN17
EN21
EN22
EN23
EN26
EN28
LA1
LA5
LA7
LA8
pp. 23 - 27
pp. 72 - 75
LA6
LA9
LA10
pp. 64 - 68
TRAINING AND EDUCATION
LA11
LA12
pp. 64 - 68
pp. 64, 67
pp. 66 - 69
pp. 64 - 68
DIVERSITY AND EQUAL OPPORTUNITY
pp. 16 - 19,
64 - 68
HUMAN RIGHTS
INVESTMENTS AND PROCUREMENTS
p. 64, 82 - 83
p. 64, 82 - 83
HR3
p. 59, 64
NON - DISCRIMINATION
p. 64
FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING
p. 64
CHILD LABOR
p. 64
FORCED AND COMPULSORY LABOR
p. 64
SOCIETY
COMMUNITY
pp. 83 - 86
p. 64
p. 70
CORRUPTION
PUBLIC POLICY
COMPLIANCE
pp. 58 - 86
LA13
HR 1
HR 2
HR4
HR5
HR6
HR7
SO1
SO2
SO5
SO8
REPORTED
REPORTED, NEEDS IMPROVEMENT
4.14
4.15
4.16
4.17
pp. 61, 83 - 86
pp. 61, 83 - 86
pp. 83 - 86
pp. 83 - 86
To the Board and stakeholders
of Gold Fields:
(SS)
was
SustainabilityServices.co.za
commissioned by Gold Fields
to provide
independent third party assurance over this
2009 Sustainability Report
‘Report’,
covering the period 1 July 2008 to 30 June
team comprised
2009). The assurance
of Corporate Social Responsibility
(CSR)
consultants with experience in environmental
and social performance measurement over a
period of more than 10 years.
(the
AccountAbility AA1000S (revised, 2008)
To the best of our ability, this assurance
engagement has been managed in accordance
with AccountAbility’s AA1000AS
(2008)
assurance standard, and structured to meet
the AA1000AS Type 1 (Moderate) requirements.
Independence
SS was not responsible for the preparation of
any part of this Report and has not undertaken
in the
any commissions
reporting period concerning reporting or data
collection.
for Gold Fields
Assurance objectives
Our assurance objectives were to provide
stakeholders with an independent ‘moderate
level assurance’ opinion on whether the report
meets the AA1000AS (2008) principles of
Inclusivity, Materiality and Responsiveness, as
well as to assess the degree to which the Report
is consistent with the 10 International Council
on Metal and Mining
(ICMM) Sustainable
Development (SD) principles and the Global
Reporting Initiative (GRI) G3 guidelines, to the
extent of meeting the GRI’s B+ level of reporting
application.
Scope of work performed
AA1000AS (2008) Compliance
The process used in arriving at this assurance
is based on AccountAbility’s
statement
AA1000AS
(2008) guidance, other best
practices in sustainability reporting assurance.
Our approach to assurance included:
(cid:115)(cid:0)(cid:0)(cid:33)(cid:0) (cid:82)(cid:69)(cid:86)(cid:73)(cid:69)(cid:87)(cid:0) (cid:79)(cid:70)(cid:0) (cid:39)(cid:79)(cid:76)(cid:68)(cid:0) (cid:38)(cid:73)(cid:69)(cid:76)(cid:68)(cid:83)(cid:7)(cid:0) (cid:77)(cid:69)(cid:65)(cid:83)(cid:85)(cid:82)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0) (cid:65)(cid:78)(cid:68)(cid:0)
reporting procedures;
(cid:115)(cid:0)(cid:0)(cid:33)(cid:0) (cid:82)(cid:69)(cid:86)(cid:73)(cid:69)(cid:87)(cid:0) (cid:79)(cid:70)(cid:0) (cid:68)(cid:82)(cid:65)(cid:70)(cid:84)(cid:83)(cid:0) (cid:79)(cid:70)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:50)(cid:69)(cid:80)(cid:79)(cid:82)(cid:84)(cid:0) (cid:70)(cid:79)(cid:82)(cid:0) (cid:65)(cid:78)(cid:89)(cid:0)
significant anomalies; and,
(cid:115)(cid:0)(cid:0)(cid:41)(cid:78)(cid:84)(cid:69)(cid:82)(cid:86)(cid:73)(cid:69)(cid:87)(cid:83)(cid:0) (cid:87)(cid:73)(cid:84)(cid:72)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:73)(cid:78)(cid:68)(cid:73)(cid:86)(cid:73)(cid:68)(cid:85)(cid:65)(cid:76)(cid:0) (cid:82)(cid:69)(cid:83)(cid:80)(cid:79)(cid:78)(cid:83)(cid:73)(cid:66)(cid:76)(cid:69)(cid:0)
for collating and writing various parts of the
Report in order to ensure selected claims
were reported and substantiated.
Unlike other assurance engagements, site
visits were not undertaken to test accuracy of
data at the primary source of collection and
collation.
88
G O L D F I E L D S A N N UA L R E P O R T 2 0 0 9
SUSTAINABLE DEVELOPMENT
Recommendations
AA1000AS (2008)
(cid:115)(cid:0)(cid:0)(cid:39)(cid:79)(cid:76)(cid:68)(cid:0) (cid:38)ields should ensure that stakeholder
engagement
an
procedures
assessment of whether or not Sustainability
Reports adequately refl ect
the reporting
requirements of key stakeholders;
include
(cid:115)(cid:0)(cid:0)(cid:39)(cid:79)(cid:76)(cid:68)(cid:0) (cid:38)(cid:73)(cid:69)(cid:76)(cid:68)(cid:83)(cid:0) (cid:83)(cid:72)(cid:79)(cid:85)(cid:76)(cid:68)(cid:0) (cid:73)(cid:77)(cid:80)(cid:82)(cid:79)(cid:86)(cid:69)(cid:0) (cid:73)(cid:84)(cid:83)(cid:0) (cid:82)(cid:69)(cid:80)(cid:79)(cid:82)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0)
in line with the principles of Inclusiveness,
Materiality, and Responsiveness, as guided
by AA1000AS (2008), seeking Type 2 (High)
levels of assurance in future.
(cid:115)(cid:0)(cid:0)(cid:38)(cid:85)(cid:84)(cid:85)(cid:82)(cid:69)(cid:0)
(cid:83)(cid:72)(cid:79)(cid:85)(cid:76)(cid:68)(cid:0)
(cid:83)(cid:85)(cid:83)(cid:84)(cid:65)(cid:73)(cid:78)(cid:65)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0)
be designed and developed
to afford
stakeholders a clearer understanding of Gold
Fields’ most material sustainability issues.
(cid:82)(cid:69)(cid:80)(cid:79)(cid:82)(cid:84)(cid:83)(cid:0)
Given that this is a Type 1 (Moderate) assurance
engagement, the testing of data accuracy was
limited to trend and anomaly studies.
Alignment to the ICMM 10 SD Principles
Our objective was to provide assurance over
the alignment of the company’s sustainability
policies to the ICMM’s 10 SD principles and
any mandatory requirements set out in ICMM
position statements.
process
included
The
a
employed
comprehensive desk review of the Report,
interviews with
relevant company offi cials
regarding the status of implementation of
systems, and selective testing of the functionality
of key systems and procedures.
GRI compliance
In determining the GRI G3 ‘Application Level’ of
the Report, we performed the following:
(cid:115)(cid:0)(cid:0)(cid:33)(cid:0) (cid:82)(cid:69)(cid:86)(cid:73)(cid:69)(cid:87)(cid:0) (cid:79)(cid:70)(cid:0) (cid:80)(cid:82)(cid:79)(cid:67)(cid:69)(cid:83)(cid:83)(cid:69)(cid:83)(cid:0) (cid:69)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:69)(cid:68)(cid:0) (cid:84)(cid:79)(cid:0) (cid:68)(cid:69)(cid:108)(cid:0)(cid:78)(cid:69)(cid:0)
content, context and materiality, as well as
stakeholder engagement processes, and
the inclusion of reasonable discourses over
material issues;
(cid:115)(cid:0)(cid:0)(cid:33)(cid:0)(cid:82)(cid:69)(cid:86)(cid:73)(cid:69)(cid:87)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:65)(cid:80)(cid:80)(cid:82)(cid:79)(cid:65)(cid:67)(cid:72)(cid:0)(cid:79)(cid:70)(cid:0)(cid:77)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:84)(cid:79)(cid:0)
addressing topics discussed in the Report;
and
(cid:115)(cid:0)(cid:0)(cid:33)(cid:0)(cid:82)(cid:69)(cid:86)(cid:73)(cid:69)(cid:87)(cid:0)(cid:79)(cid:70)(cid:0)(cid:68)(cid:82)(cid:65)(cid:70)(cid:84)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:50)(cid:69)(cid:80)(cid:79)(cid:82)(cid:84)(cid:0)(cid:84)(cid:79)(cid:0)(cid:65)(cid:83)(cid:83)(cid:69)(cid:83)(cid:83)(cid:0)(cid:39)(cid:50)(cid:41)(cid:0)
G3 performance indicators covered in the
Report.
Findings
AA1000AS (2008) – Inclusivity, Materiality and
Responsiveness
In general,
the company’s sustainability
reporting processes are adequate. However, it
was found that:
(cid:115)(cid:0)(cid:0)(cid:33)(cid:76)(cid:84)(cid:72)(cid:79)(cid:85)gh Gold Fields actively engages an
array of key stakeholders, as defi ned within
Alignment to the 10 ICMM SD Principles
Based on our fi ndings, Gold Fields should
future Reports
demonstrate that this and
adequately address
the concerns and
information requirements of its key stakeholders,
and that these concerns are shown to play a
role in informing materiality of the company’s
SD risk management process as well as its
reporting.
GRI compliance
Having reasonably met GRI G3 Application Level
B basic requirements, it is our recommendation
that Gold Fields continue to review the process
followed in compiling the Report and ensure
that
improvements occur
to enhance the quality of data required for
Application Level B
further reporting
the
information
Conclusions
Based
reviewed,
on
SustainabilityServices.co.za is confi dent that
this report provides a reasonably complete and
balanced account of the environmental, safety
and social performance of Gold Fields during
the period under review. The data presented
is based on systematic processes and we
are satisfi ed that the reported performance
data adequately represents the sustainability
performance of Gold Fields, while meeting
the AA1000AS (2008) principles of inclusivity,
materiality and responsiveness. The Report is
consistent with the 10 ICMM SD principles.
Moreover, and although the quality or quantity
of data of some GRI G3 indicators can be
improved, this Report appears to meet the GRI
G3’s requirements for Application Level B (B+
with this assurance engagement).
SustainabilityServices.co.za
10 September 2009
this Report, the assurance process did not
allow for additional engagement to confi rm
or refute Gold Fields’ assertion that the
Report adequately refl ects the information
requirements of their key stakeholders;
(cid:115)(cid:0)(cid:0)(cid:55)(cid:73)(cid:84)(cid:72)(cid:73)(cid:78)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:83)(cid:67)(cid:79)(cid:80)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:65)(cid:0)(cid:64)(cid:45)(cid:79)(cid:68)(cid:69)(cid:82)(cid:65)(cid:84)(cid:69)(cid:0)(cid:44)(cid:69)(cid:86)(cid:69)(cid:76)(cid:0)(cid:52)(cid:89)(cid:80)(cid:69)(cid:0)(cid:17)(cid:0)
assurance assessment’, the Report appears
to refl ect an accurate accounting of Gold
Fields’ sustainability reporting performance.
(cid:115)(cid:0)(cid:0)(cid:52)(cid:72)(cid:69)(cid:0) (cid:50)(cid:69)(cid:80)(cid:79)(cid:82)(cid:84)(cid:0) (cid:68)(cid:79)(cid:69)(cid:83)(cid:0) (cid:78)(cid:79)(cid:84)(cid:0) (cid:67)(cid:76)(cid:69)(cid:65)(cid:82)(cid:76)(cid:89)(cid:0) (cid:65)(cid:70)(cid:70)(cid:79)(cid:82)(cid:68)(cid:0)
stakeholders an understanding of Gold Fields’
most material sustainability issues.
Alignment to the 10 ICMM SD Principles
Based on the work done, we can confi rm
that the company’s Sustainable Development
Framework is aligned with the 10 ICMM
SD Principles, and
these principles
have informed the structure and content of
this Report and the implementation of its
policies and systems which drive company
performance.
that
GRI compliance
Based on our review of the Report, as well
as the processes employed to collect and
collate information reported herein, it is our
assertion that this Report meets the GRI G3’s
requirements for Application Level B (responses
to all required indicators, as well as no fewer
than 20 Core indicators, with at least one
from each of Economic, Environment, Human
Rights, Labour and Society). However, it was
found that:
Product Responsibility
indicators were
reasonably deemed ‘not applicable’, and thus
were not reported.
The reporting of performance against some
GRI G3 indicators requires either data quality
improvements, or further detail in disclosure.
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
89
Section 3:
Annual Financial Statements
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(cid:32)(cid:25)
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(cid:24)(cid:24)(cid:25)
(cid:24)(cid:25)(cid:27)
(cid:24)(cid:27)(cid:23)
(cid:24)(cid:27)(cid:24)
(cid:24)(cid:27)(cid:25)
(cid:24)(cid:27)(cid:29)
(cid:24)(cid:27)(cid:30)
199
(cid:25)(cid:23)(cid:23)
(cid:25)(cid:23)(cid:24)
(cid:25)(cid:23)(cid:25)
(cid:25)(cid:23)(cid:26)
(cid:25)(cid:24)(cid:23)
(cid:25)(cid:24)(cid:25)
(cid:25)(cid:24)(cid:27)
(cid:25)(cid:24)(cid:28)
(cid:25)(cid:24)(cid:32)
(cid:25)(cid:25)(cid:28)
(cid:25)(cid:25)(cid:29)
Attached
Statement of Responsibility
Report of the Independent Auditors
(cid:42)(cid:86)(cid:89)(cid:87)(cid:86)(cid:89)(cid:72)(cid:91)(cid:76)(cid:3)(cid:58)(cid:76)(cid:74)(cid:89)(cid:76)(cid:91)(cid:72)(cid:89)(cid:96)(cid:187)(cid:90)(cid:3)(cid:42)(cid:86)(cid:85)(cid:196)(cid:3)(cid:89)(cid:84)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:3)(cid:3)
Management’s Discussion and Analysis of the
Financial Statements
(cid:43)(cid:80)(cid:89)(cid:76)(cid:74)(cid:91)(cid:86)(cid:89)(cid:90)(cid:187)(cid:3)(cid:57)(cid:76)(cid:87)(cid:86)(cid:89)(cid:91)(cid:3)(cid:3)
(cid:40)(cid:74)(cid:74)(cid:86)(cid:92)(cid:85)(cid:91)(cid:80)(cid:85)(cid:78)(cid:3)(cid:55)(cid:86)(cid:83)(cid:80)(cid:74)(cid:80)(cid:76)(cid:90)(cid:3)(cid:3)
(cid:42)(cid:86)(cid:85)(cid:90)(cid:86)(cid:83)(cid:80)(cid:75)(cid:72)(cid:91)(cid:76)(cid:75)(cid:3)(cid:48)(cid:85)(cid:74)(cid:86)(cid:84)(cid:76)(cid:3)(cid:58)(cid:91)(cid:72)(cid:91)(cid:76)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:3)
(cid:42)(cid:86)(cid:85)(cid:90)(cid:86)(cid:83)(cid:80)(cid:75)(cid:72)(cid:91)(cid:76)(cid:75)(cid:3)(cid:41)(cid:72)(cid:83)(cid:72)(cid:85)(cid:74)(cid:76)(cid:3)(cid:58)(cid:79)(cid:76)(cid:76)(cid:91)(cid:3)(cid:3)
(cid:42)(cid:86)(cid:85)(cid:90)(cid:86)(cid:83)(cid:80)(cid:75)(cid:72)(cid:91)(cid:76)(cid:75)(cid:3)(cid:58)(cid:91)(cid:72)(cid:91)(cid:76)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:86)(cid:77)(cid:3)(cid:42)(cid:79)(cid:72)(cid:85)(cid:78)(cid:76)(cid:90)(cid:3)(cid:80)(cid:85)(cid:3)(cid:44)(cid:88)(cid:92)(cid:80)(cid:91)(cid:96)(cid:3)(cid:3)
(cid:42)(cid:86)(cid:85)(cid:90)(cid:86)(cid:83)(cid:80)(cid:75)(cid:72)(cid:91)(cid:76)(cid:75)(cid:3)(cid:42)(cid:72)(cid:90)(cid:79)(cid:3)(cid:45)(cid:83)(cid:86)(cid:94)(cid:3)(cid:58)(cid:91)(cid:72)(cid:91)(cid:76)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:3)
(cid:53)(cid:86)(cid:91)(cid:76)(cid:90)(cid:3)(cid:91)(cid:86)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:42)(cid:86)(cid:85)(cid:90)(cid:86)(cid:83)(cid:80)(cid:75)(cid:72)(cid:91)(cid:76)(cid:75)(cid:3)(cid:45)(cid:80)(cid:85)(cid:72)(cid:85)(cid:74)(cid:80)(cid:72)(cid:83)(cid:3)(cid:58)(cid:91)(cid:72)(cid:91)(cid:76)(cid:84)(cid:76)(cid:85)(cid:91)(cid:90)(cid:3)(cid:3)
Company Income Statement
(cid:42)(cid:86)(cid:84)(cid:87)(cid:72)(cid:85)(cid:96)(cid:3)(cid:41)(cid:72)(cid:83)(cid:72)(cid:85)(cid:74)(cid:76)(cid:3)(cid:58)(cid:79)(cid:76)(cid:76)(cid:91)(cid:3)(cid:3)
(cid:42)(cid:86)(cid:84)(cid:87)(cid:72)(cid:85)(cid:96)(cid:3)(cid:58)(cid:91)(cid:72)(cid:91)(cid:76)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:86)(cid:77)(cid:3)(cid:42)(cid:79)(cid:72)(cid:85)(cid:78)(cid:76)(cid:90)(cid:3)(cid:80)(cid:85)(cid:3)(cid:58)(cid:79)(cid:72)(cid:89)(cid:76)(cid:79)(cid:86)(cid:83)(cid:75)(cid:76)(cid:89)(cid:90)(cid:187)(cid:3)(cid:44)(cid:88)(cid:92)(cid:80)(cid:91)(cid:96)(cid:3)(cid:3)
(cid:42)(cid:86)(cid:84)(cid:87)(cid:72)(cid:85)(cid:96)(cid:3)(cid:42)(cid:72)(cid:90)(cid:79)(cid:3)(cid:45)(cid:83)(cid:86)(cid:94)(cid:3)(cid:58)(cid:91)(cid:72)(cid:91)(cid:76)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:3)
(cid:53)(cid:86)(cid:91)(cid:76)(cid:90)(cid:3)(cid:91)(cid:86)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:42)(cid:86)(cid:84)(cid:87)(cid:72)(cid:85)(cid:96)(cid:3)(cid:40)(cid:85)(cid:85)(cid:92)(cid:72)(cid:83)(cid:3)(cid:45)(cid:80)(cid:85)(cid:72)(cid:85)(cid:74)(cid:80)(cid:72)(cid:83)(cid:3)(cid:58)(cid:91)(cid:72)(cid:91)(cid:76)(cid:84)(cid:76)(cid:85)(cid:91)(cid:90)(cid:3)(cid:3)
(cid:52)(cid:72)(cid:81)(cid:86)(cid:89)(cid:3)(cid:46)(cid:89)(cid:86)(cid:92)(cid:87)(cid:3)(cid:48)(cid:85)(cid:93)(cid:76)(cid:90)(cid:91)(cid:84)(cid:76)(cid:85)(cid:91)(cid:90)(cid:3)(cid:182)(cid:3)(cid:43)(cid:80)(cid:89)(cid:76)(cid:74)(cid:91)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:48)(cid:85)(cid:75)(cid:80)(cid:89)(cid:76)(cid:74)(cid:91)(cid:3)(cid:3)
(cid:58)(cid:76)(cid:78)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:57)(cid:76)(cid:87)(cid:86)(cid:89)(cid:91)(cid:3)(cid:3)
(cid:58)(cid:79)(cid:72)(cid:89)(cid:76)(cid:79)(cid:86)(cid:83)(cid:75)(cid:76)(cid:89)(cid:90)(cid:187)(cid:3)(cid:48)(cid:85)(cid:77)(cid:86)(cid:89)(cid:84)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:3)(cid:3)
(cid:54)(cid:87)(cid:76)(cid:89)(cid:72)(cid:91)(cid:80)(cid:85)(cid:78)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:45)(cid:80)(cid:85)(cid:72)(cid:85)(cid:74)(cid:80)(cid:72)(cid:83)(cid:3)(cid:48)(cid:85)(cid:77)(cid:86)(cid:89)(cid:84)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:3)(cid:73)(cid:96)(cid:3)(cid:52)(cid:80)(cid:85)(cid:76)(cid:3)(cid:3)
(cid:53)(cid:86)(cid:91)(cid:80)(cid:74)(cid:76)(cid:3)(cid:86)(cid:77)(cid:3)(cid:40)(cid:85)(cid:85)(cid:92)(cid:72)(cid:83)(cid:3)(cid:46)(cid:76)(cid:85)(cid:76)(cid:89)(cid:72)(cid:83)(cid:3)(cid:52)(cid:76)(cid:76)(cid:91)(cid:80)(cid:85)(cid:78)(cid:3)(cid:3)
(cid:40)(cid:75)(cid:84)(cid:80)(cid:85)(cid:80)(cid:90)(cid:91)(cid:89)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:42)(cid:86)(cid:89)(cid:87)(cid:86)(cid:89)(cid:72)(cid:91)(cid:76)(cid:3)(cid:48)(cid:85)(cid:77)(cid:86)(cid:89)(cid:84)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:3)(cid:3)
(cid:46)(cid:83)(cid:86)(cid:90)(cid:90)(cid:72)(cid:89)(cid:96)(cid:3)(cid:86)(cid:77)(cid:3)(cid:59)(cid:76)(cid:89)(cid:84)(cid:90)(cid:3)(cid:3)
Proxy Form
Notes to Form of Proxy
90
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
STATEMENT OF RESPONSIBILITY
STATEMENT OF RESPONSIBILITY BY THE BOARD OF DIRECTORS
The directors are responsible for the preparation, integrity and fair presentation of the financial statements of the company and of
the Group. The financial statements presented on pages 112 to 214 have been prepared in accordance with International Financial
Reporting Standards (IFRS) and in a manner required by the Companies Act in South Africa, and include amounts based on
judgements and estimates made by management.
The directors consider that, in preparing the financial statements, they have used the most appropriate accounting policies,
consistently applied and supported by reasonable and prudent judgements and estimates, and that all IFRS Standards that they
consider to be applicable have been followed. The directors are satisfied that the information contained in the financial statements
fairly presents the results of operations for the year and the financial position of the Group at year end. The directors also prepared
the other information included in the annual report and are responsible for both its accuracy and its consistency with the financial
statements.
The directors have responsibility for ensuring that accounting records are kept. The accounting records should disclose with
reasonable accuracy the financial position of the companies to enable the directors to ensure that the financial statements comply
with the relevant legislation.
The company and the Group operated in a well-established controlled environment, which is well documented and regularly
reviewed. This incorporates risk management and internal control procedures, which are designed to provide reasonable, but not
absolute, assurance that assets are safeguarded and the risks facing the business are being controlled.
The going-concern basis has been adopted in preparing the financial statements. The directors have no reason to believe that the
Group or any company within the Group will not be going concerns in the foreseeable future, based on forecasts and available cash
resources. These financial statements support the viability of the company and the Group.
Gold Fields has adopted a Code of Ethics which code is available on the Gold Fields website and which is adhered to by the Group.
The Group’s external auditors, PricewaterhouseCoopers Incorporated, audited the financial statements, and their report is
presented on page 91.
The financial statements were approved by the Board of Directors on 10 September 2009 and are signed on its behalf by:
NJ Holland
Chief Executive Officer
JG Hopwood
Non-Executive Director
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
91
REPORT OF THE INDEPENDENT AUDITORS
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF GOLD FIELDS LIMITED
We have audited the Group annual financial statements and annual financial statements of Gold Fields Limited, which comprise
the consolidated and separate balance sheets as at 30 June 2009, and the consolidated and separate income statements, the
consolidated and separate statements of changes in equity and consolidated and separate cash flow statements for the year then
ended, and a summary of significant accounting policies and other explanatory notes, and the directors’ report, as set out on pages
112 to 214.
DIRECTORS’ RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The company’s directors are responsible for the preparation and fair presentation of these financial statements in accordance with
International Financial Reporting Standards, and in the manner required by the Companies Act of South Africa. This responsibility
includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting
policies; and making accounting estimates that are reasonable in the circumstances.
AUDITORS’ RESPONSIBILITY
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance
with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant
to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit
also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made
by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
OPINION
In our opinion, the financial statements present fairly, in all material respects, the consolidated and separate financial position of
Gold Fields Limited as at 30 June 2009, and its consolidated and separate financial performance and its consolidated and separate
cash flows for the year then ended in accordance with International Financial Reporting Standards and in the manner required by
the Companies Act of South Africa.
PricewaterhouseCoopers Inc
Director: PC Hough
Registered Auditor
Johannesburg
10 September 2009
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G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
CORPORATE SECRETARY’S CONFIRMATION
In terms of section 268G(d) of the Companies Act, 1973, as amended, I certify that the company has lodged with the Companies
and Intellectual Property Registration Office all such returns as are required to be lodged by a public company in terms of the
Companies Act, and that all such returns are true, correct and up to date.
C Farrel
Corporate Secretary
10 September 2009
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
93
MANAGEMENT’S DISCUSSION AND ANALYSIS OF THE FINANCIAL
STATEMENTS
(The following Management’s Discussion and Analysis of the Financial Statements should be read together with the Gold Fields’
consolidated financial statements, including the notes appearing with these financial statements.)
The financial results have been prepared in accordance with International Financial Reporting Standards (IFRS) which is consistent
with the previous year.
RESULTS FOR THE YEAR
Net earnings attributable to ordinary shareholders for F2009 were R1,536 million or 229 cents per share, compared with net
earnings attributable to ordinary shareholders of R4,458 million or 683 cents per share achieved for the previous financial year. The
reasons for this decrease are discussed below.
Headline earnings which exclude the after tax effect of asset impairments and profits on the sale of investments and fixed
assets, amounted to R2,890 million or 431 cents per share for F2009, compared with headline earnings for the previous year of
R2,992 million or 459 cents per share.
These results are analysed as follows:
REVENUE
Revenue increased 26 per cent from R23,010 million in F2008 to R29,087 million in F2009. The increase in revenue of R6,077 million
was due to the increase in the rand gold price, which increased from R190,623 per kilogram to R253,459 per kilogram, partially
offset by a decrease in gold sales. This increase in the rand gold price occurred as a result of a seven per cent increase in the US
dollar gold price from an average of US$816 per ounce to US$875 per ounce year on year and a weaker rand, which moved from
an average of 7.27 to 9.01 to the US dollar; a change of 24 per cent.
Gold sales decreased by five per cent from 3,880,800 ounces in F2008 to 3,689,600 ounces in F2009. Gold sales at the South
African operations decreased from 2,419,100 ounces to 2,038,700 ounces or 16 per cent, while gold sales at the international
operations increased from 1,461,700 ounces to 1,650,900 ounces or 13 per cent.
At the South African operations, the decrease in gold sales of 380,400 ounces was mainly as a result of the infrastructure
rehabilitation at Kloof’s Main shaft, safety stoppages related to seismicity and backlog secondary support at Driefontein and Kloof.
Added to this were poor recoveries at Beatrix and a 25 per cent decrease in production at South Deep, from 232,100 ounces to
174,700 ounces, due to the termination of conventional VCR mining and rehabilitation of the two main access ramps.
At Driefontein, gold output reduced by 11 per cent from 928,000 ounces to 829,900 ounces as a result of lower underground
volumes mined and processed of four per cent as well as a lower underground yield, which reduced by seven per cent from 8.1
grams per ton to 7.5 grams per ton. The lower volumes in the first half of the year were due to the backlog secondary support
programme and two seismic events which resulted in safety related stoppages which led to a loss of high grade production,
specifically pillar mining at 6 and 10 shafts.
Gold output at Kloof decreased by 22 per cent from 820,900 ounces to 643,000 ounces as a result of the major rehabilitation work
undertaken and completed in the first half of the year on the Main shaft infrastructure, as well as safety related stoppages during
the year. At Beatrix, gold output decreased 11 per cent from 438,100 ounces to 391,100 ounces due to a seven per cent decline
in volumes mined and processed together with a decrease in yield.
At the international operations the increase in gold sales of 189,200 equivalent ounces was mainly as a result of the transition of
Cerro Corona in Peru from project to operational phase during the year. First production was achieved in August 2008, with sales
for the year of 217,800 equivalent ounces. This increase was partially offset by lower production from Ghana. At Tarkwa gold
sales decreased from 646,100 ounces to 612,400 ounces mainly due to the problems associated with the commissioning of the
new Carbon-in-Leach (CIL) expansion and the tie-in to the existing metallurgical plant. These problems have been overcome and
nameplate capacity is being achieved. Gold sales at Damang were similar year on year, increasing from 194,200 ounces to 200,400
ounces as crusher problems which negatively affected production earlier in the year were offset by increased production from the
high grade Damang pit cutback and a more consistent feed to the plant due to the build up of the crushed ore stockpile in F2008.
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G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
MANAGEMENT’S DISCUSSION AND ANALYSIS OF THE FINANCIAL
STATEMENTS continued
In Australia production was similar year on year. Gold sales at St Ives increased by three per cent from 417,700 ounces to
428,300 ounces, due to an increase of higher grade ore from the newly developed Cave Rocks and Belleisle underground mines.
At Agnew, gold sales declined from 203,700 ounces to 192,100 ounces due to the completion of Songvang open pit stockpiles in
January 2009, partially offset by a ramp-up in production from the Waroonga (Kim and Main Lode) underground complex.
COST OF SALES
Cost of sales, which consists of operating costs, changes in gold inventories and amortisation and depreciation, increased from
R16,994 million in F2008 to R21,766 million in F2009.
The table below presents the analysis of cost of sales:
Analysis of cost of sales
Total cash cost
Add: General and administration
Exploration – on mine*
Rehabilitation
Gold inventory change – cash portion
Royalties**
Operating costs
(Deduct)/add: Gold inventory change – total
Amortisation and depreciation
Cost of sales per income statement
F2009
R million
F2008
R million
17,145
707
–
129
192
(339)
17,834
(210)
4,142
21,766
13,436
585
38
59
7
(243)
13,882
86
3,026
16,994
* On-mine or brownfields exploration is expensed as from F2009 together with greenfields exploration on the exploration line in the income statement and as such
does not form part of cost of sales.
** Royalties are deducted as they are included as part of total cash cost but are reflected as part of taxation in the income statement.
The analysis that follows provides a more detailed comparison of cost of sales, as well as a new, non-IFRS measure providing all-in
costs for the Group. This new measure is defined as notional cash expenditure (NCE) per ounce.
Operating costs – cost of sales less gold inventory change, and amortisation and depreciation
Operating costs increased by 28 per cent from R13,882 million in F2008 to R17,834 million in F2009. The increase at the South
African operations was 14 per cent from R8,610 million to R9,840 million and at the international operations 52 per cent from R5,272
million in F2008 to R7,994 million in F2009.
At the South African operations the increase of R1,230 million was mainly due to the above inflation annual wage increases of
around 12 per cent all-in, a 25 per cent increase in electricity costs and an increase in commodity costs due to the commodities
boom, which only slowed in the second half of the year. These increases were partially offset by the lower production levels and
benefits achieved through our cost saving initiatives, such as programmes to reduce power consumption, a review of surface
labour, improved workshop delivery, more effective salvage and reclamation and a focus on core business training, amongst others.
At the international operations, the increase of R2,722 million was mainly due to the weaker rand, which resulted in an increase of
approximately R1,260 million, and R779 million at Cerro Corona, being its first year of operation as well as increased mining activity.
In the respective reporting currencies the increase in operating costs at the Australian operations was 24 per cent and in Ghana,
which is US dollar based, the increase was 17 per cent.
In Australia at St Ives, operating costs increased from A$269 million to A$345 million. This was made up of an increase in the third
party royalty charge of A$32 million, due to the initial application of the 4 per cent smelter royalty combined with the higher Australian
gold price. Other contributing factors were an increase in mining costs because of the 16 per cent increased underground and open
pit ore tons mined, mainly from Cave Rocks, Belleisle and Leviathan open pit, and an increase in commodity and contractor costs.
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
95
At Agnew, costs increased from A$92 million to A$101 million, as underground mining activity increased following the depletion of
the Songvang stockpiles during the year.
In Ghana at Tarkwa, operating costs increased from US$283 million to US$338 million. This increase was due to an 11 per cent
increase in tons mined and increased milling volumes, increased maintenance and repairs contract (MARC) tariffs due to the larger
and relatively older fleet, as well as increased power usage due to the newly expanded CIL plant and increased tariffs. At Damang,
the majority of the increase from US$118 million to US$132 million was due to increased mining of the more expensive high grade
Damang pit, together with an increase in mill consumables and increased power tariffs during the year.
The following table sets out for each operation and the Group, total gold sales in ounces, total cash cost and total production cost
in US$/oz and R/kg for the years ended 30 June 2009 and 2008:
Year ended 30 June 2009
Year ended 30 June 2008
Gold
sold
(‘000 oz)
Total
Total
cash production
cost5
cost5
(US$/oz)
(US$/oz)
Total
Total
cash production
cost5
cost5
(R/kg)
(R/kg)
Gold
sold
(‘000 oz)
Total
Total
cash production
cost5
cost5
(US$/oz)
(US$/oz)
Total
Total
cash production
cost5
cost5
(R/kg)
(R/kg)
South Africa
(cid:115)(cid:0)(cid:0)(cid:36)(cid:82)(cid:73)(cid:69)(cid:70)(cid:79)(cid:78)(cid:84)(cid:69)(cid:73)(cid:78)(cid:0)
(cid:115)(cid:0)(cid:0)(cid:43)(cid:76)(cid:79)(cid:79)(cid:70)(cid:0)
(cid:115)(cid:0)(cid:0)(cid:34)(cid:69)(cid:65)(cid:84)(cid:82)(cid:73)(cid:88)(cid:0)
(cid:115)(cid:0)(cid:0)(cid:51)(cid:79)(cid:85)(cid:84)(cid:72)(cid:0)(cid:36)(cid:69)(cid:69)(cid:80)(cid:0)
829.9
643.0
391.1
174.7
South African operations
2,038.7
Ghana
(cid:115)(cid:0)(cid:0)(cid:52)(cid:65)(cid:82)(cid:75)(cid:87)(cid:65) 1
(cid:115)(cid:0)(cid:0)(cid:36)(cid:65)(cid:77)(cid:65)(cid:78)(cid:71)(cid:0)2
Peru – Cerro Corona3
Australia4
(cid:115)(cid:0)(cid:0)(cid:51)(cid:84)(cid:0)(cid:41)(cid:86)(cid:69)(cid:83)(cid:0)
(cid:115)(cid:0)(cid:0)(cid:33)(cid:71)(cid:78)(cid:69)(cid:87)(cid:0)
612.4
200.4
217.8
428.3
192.0
International operations
1,650.9
Total operations
3,689.6
448
507
552
717
510
521
660
369
596
401
523
537
632
680
903
626
609
755
543
708
129,837
146,930
159,799
207,803
155,451
183,148
196,917
261,612
928.0
820.9
438.1
232.1
147,657
181,238
2,419.1
176,438
218,662
157,168
205,074
150,814
191,179
106,777
172,707
116,120
646.1
194.2
417.7
203.7
655
151,549
189,782
1,461.7
3,880.8
412
430
515
727
467
430
551
582
445
492
496
531
610
866
564
500
623
734
96,293
100,419
120,382
169,889
115,898
124,094
142,510
202,382
109,117
131,797
100,552
128,770
116,760
145,506
171,673
136,122
104,040
616
114,952
143,925
Weighted average cost
516
639
149,398
185,061
476
583
111,315
136,365
Notes: 1 In F2009 and 2008, 435,400 ounces and 459,400 ounces respectively were attributable to Gold Fields.
2 In F2009 and 2008, 142,500 ounces and 138,100 ounces respectively were attributable to Gold Fields.
3 In F2009, 175,800 ounces were attributable to Gold Fields. There were no sales in F2008.
4 Total production cost for the Australian operations is not split between the two operations.
5 Total cash cost and total production cost is calculated in accordance with the Gold Institute industry standard.
The weighted average total cash cost per kilogram increased by 34 per cent from R111,315 per kilogram (US$476 per ounce) in
F2008, to R149,398 per kilogram (US$516 per ounce) in F2009.
The weighted average total cash cost at the South African operations in rand terms increased by 35 per cent from R109,117 per
kilogram (US$467 per ounce) in F2008 to R147,657 per kilogram (US$510 per ounce) in F2009. This increase was as a result of
the decline in gold production and the increases in costs described earlier.
At the international operations total cash cost increased from R114,952 per kilogram (US$492 per ounce) to R151,549 per kilogram
(US$523 per ounce) an increase of 32 per cent in rand terms but only six per cent in dollar terms as the increase in costs was
partially offset by the increase in production.
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G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
MANAGEMENT’S DISCUSSION AND ANALYSIS OF THE FINANCIAL
STATEMENTS continued
General and administration (G&A) costs
Net General and Administration costs, which are included in operating costs, were R707 million in F2009, an increase of 21 per
cent compared with the R585 million in F2008 of which nearly half was due to the weaker rand.
Costs falling under the definition of general and administration costs included the following:
(cid:115)(cid:0)(cid:0)(cid:50)(cid:69)(cid:67)(cid:79)(cid:86)(cid:69)(cid:82)(cid:69)(cid:68)(cid:0)(cid:67)(cid:79)(cid:82)(cid:80)(cid:79)(cid:82)(cid:65)(cid:84)(cid:69)(cid:0)(cid:69)(cid:88)(cid:80)(cid:69)(cid:78)(cid:68)(cid:73)(cid:84)(cid:85)(cid:82)(cid:69)(cid:0)(cid:70)(cid:79)(cid:82)(cid:0)(cid:38)(cid:18)(cid:16)(cid:16)(cid:25)(cid:0)(cid:87)(cid:65)(cid:83)(cid:0)(cid:50)(cid:18)(cid:21)(cid:20)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:67)(cid:79)(cid:77)(cid:80)(cid:65)(cid:82)(cid:69)(cid:68)(cid:0)(cid:87)(cid:73)(cid:84)(cid:72)(cid:0)(cid:50)(cid:18)(cid:16)(cid:16)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:0)(cid:38)(cid:18)(cid:16)(cid:16)(cid:24)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:0)(cid:45)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0) (cid:70)(cid:69)(cid:69)(cid:83)(cid:0) (cid:73)(cid:78)(cid:0) (cid:39)(cid:72)(cid:65)(cid:78)(cid:65)(cid:0) (cid:79)(cid:70)(cid:0) (cid:50)(cid:17)(cid:19)(cid:22)(cid:0) (cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:12)(cid:0) (cid:67)(cid:79)(cid:77)(cid:80)(cid:65)(cid:82)(cid:69)(cid:68)(cid:0) (cid:87)(cid:73)(cid:84)(cid:72)(cid:0) (cid:50)(cid:17)(cid:16)(cid:22)(cid:0) (cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0) (cid:73)(cid:78)(cid:0) (cid:38)(cid:18)(cid:16)(cid:16)(cid:24)(cid:14)(cid:0) (cid:41)(cid:78)(cid:0) (cid:68)(cid:79)(cid:76)(cid:76)(cid:65)(cid:82)(cid:0) (cid:84)(cid:69)(cid:82)(cid:77)(cid:83)(cid:0) (cid:84)(cid:72)(cid:69)(cid:89)(cid:0) (cid:87)(cid:69)(cid:82)(cid:69)(cid:0) (cid:83)(cid:73)(cid:77)(cid:73)(cid:76)(cid:65)(cid:82)(cid:0) (cid:65)(cid:84)(cid:0)
US$15 million;
(cid:115)(cid:0)(cid:0)(cid:0)(cid:52)(cid:72)(cid:69)(cid:0)(cid:67)(cid:79)(cid:83)(cid:84)(cid:0)(cid:79)(cid:70)(cid:0)(cid:82)(cid:69)(cid:71)(cid:73)(cid:79)(cid:78)(cid:65)(cid:76)(cid:0)(cid:79)(cid:70)(cid:70)(cid:73)(cid:67)(cid:69)(cid:83)(cid:0)(cid:73)(cid:78)(cid:0)(cid:33)(cid:85)(cid:83)(cid:84)(cid:82)(cid:65)(cid:76)(cid:73)(cid:65)(cid:12)(cid:0)(cid:39)(cid:72)(cid:65)(cid:78)(cid:65)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:48)(cid:69)(cid:82)(cid:85)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:17)(cid:16)(cid:18)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:12)(cid:0)(cid:67)(cid:79)(cid:77)(cid:80)(cid:65)(cid:82)(cid:69)(cid:68)(cid:0)(cid:87)(cid:73)(cid:84)(cid:72)(cid:0)(cid:50)(cid:21)(cid:21)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:0)(cid:38)(cid:18)(cid:16)(cid:16)(cid:24)(cid:14)(cid:0)(cid:52)(cid:72)(cid:69)(cid:0)(cid:73)(cid:78)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:69)(cid:0)(cid:73)(cid:83)(cid:0)
mainly due to the inclusion of the Lima office in Peru and the translation of these dollar based costs at the weaker rand;
(cid:115)(cid:0)(cid:0)(cid:0)(cid:55)(cid:79)(cid:82)(cid:76)(cid:68)(cid:0)(cid:39)(cid:79)(cid:76)(cid:68)(cid:0)(cid:35)(cid:79)(cid:85)(cid:78)(cid:67)(cid:73)(cid:76)(cid:0)(cid:70)(cid:69)(cid:69)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:21)(cid:22)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:0)(cid:38)(cid:18)(cid:16)(cid:16)(cid:25)(cid:12)(cid:0)(cid:67)(cid:72)(cid:65)(cid:82)(cid:71)(cid:69)(cid:68)(cid:0)(cid:65)(cid:84)(cid:0)(cid:65)(cid:78)(cid:0)(cid:65)(cid:86)(cid:69)(cid:82)(cid:65)(cid:71)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:53)(cid:51)(cid:4)(cid:17)(cid:14)(cid:24)(cid:16)(cid:0)(cid:80)(cid:69)(cid:82)(cid:0)(cid:79)(cid:85)(cid:78)(cid:67)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:65)(cid:84)(cid:84)(cid:82)(cid:73)(cid:66)(cid:85)(cid:84)(cid:65)(cid:66)(cid:76)(cid:69)(cid:0)(cid:71)(cid:79)(cid:76)(cid:68)(cid:0)(cid:80)(cid:82)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:14)(cid:0)
The F2008 charge was similar at R50 million;
(cid:115)(cid:0)(cid:0)(cid:47)(cid:70)(cid:70)(cid:13)(cid:83)(cid:73)(cid:84)(cid:69)(cid:0)(cid:84)(cid:82)(cid:65)(cid:73)(cid:78)(cid:73)(cid:78)(cid:71)(cid:0)(cid:65)(cid:77)(cid:79)(cid:85)(cid:78)(cid:84)(cid:69)(cid:68)(cid:0)(cid:84)(cid:79)(cid:0)(cid:50)(cid:17)(cid:20)(cid:25)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:0)(cid:38)(cid:18)(cid:16)(cid:16)(cid:25)(cid:0)(cid:67)(cid:79)(cid:77)(cid:80)(cid:65)(cid:82)(cid:69)(cid:68)(cid:0)(cid:87)(cid:73)(cid:84)(cid:72)(cid:0)(cid:50)(cid:17)(cid:20)(cid:18)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:0)(cid:38)(cid:18)(cid:16)(cid:16)(cid:24)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0)(cid:0)(cid:47)(cid:84)(cid:72)(cid:69)(cid:82)(cid:0)(cid:67)(cid:79)(cid:83)(cid:84)(cid:83)(cid:0)(cid:82)(cid:69)(cid:76)(cid:65)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0)(cid:84)(cid:79)(cid:0)(cid:35)(cid:72)(cid:65)(cid:77)(cid:66)(cid:69)(cid:82)(cid:0)(cid:79)(cid:70)(cid:0)(cid:45)(cid:73)(cid:78)(cid:69)(cid:83)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:83)(cid:80)(cid:69)(cid:67)(cid:73)(cid:65)(cid:76)(cid:0)(cid:84)(cid:69)(cid:67)(cid:72)(cid:78)(cid:73)(cid:67)(cid:65)(cid:76)(cid:0)(cid:80)(cid:82)(cid:79)(cid:74)(cid:69)(cid:67)(cid:84)(cid:83)(cid:14)
Gold inventory change
Gold inventory change in F2009 was a R210 million credit to costs, compared with a charge to costs of R86 million in F2008.
At St Ives, there was a credit to costs of R10 million in F2009 compared with a charge to costs in F2008 of R51 million. In F2009
low grade Leviathan ore was stockpiled at year end. The charge to costs in F2008 was mainly due to the drawdown of stockpiles
throughout the year to meet the shortfall resulting from the delayed production from Cave Rocks and Belleisle underground mines,
and while the Leviathan pit was brought into full production.
At Agnew, there was a charge to costs in F2009 of R20 million compared with R148 million in F2008. Both amounts were due to
processing the Songvang stockpile accumulated over prior years and depleted in mid-F2009.
At Tarkwa, there was a credit to costs in F2009 of R162 million compared with R36 million in F2008. The R162 million credit was due
to gold lock-up in the new plant, a build-up at the North heap leach and increased stockpiles at year end. The R36 million credit in
F2008 represented the build-up of inventory in the South heap leach which reached its sixth lift during the year.
At Damang, there was a credit to costs of R21 million in F2009 compared with R77 million in F2008. The credit in F2009 was mainly
due to the deliberate stockpiling of crushed ore to improve mill feed flexibility started in the previous year. The R77 million credit in
F2008 was due to a build-up of lower-grade mined-ore stockpiles of R25 million, with the balance the result of stockpiling crushed
ore at the plant to improve flexibility.
Cerro Corona had a build-up of unsold stock at year end of R37 million.
Amortisation and depreciation
Amortisation and depreciation increased by R1,116 million, from R3,026 million in F2008 to R4,142 million in F2009. At the South
African operations amortisation increased from R1,664 million in F2008 to R2,036 million in F2009, an increase of R372 million. At
the international operations amortisation increased from R1,208 million to R1,961 million, an increase of R753 million.
At the South African operations, Driefontein increased from R548 million to R625 million and Kloof from R591 million to R693 million,
mainly due to an increase in amortisation of short life ore reserve development. This was mainly as a result of a decrease in reserves.
South Deep increased from R232 million to R283 million mainly due to a R50 million credit in F2008 to reverse over provisions at
year end. However, the largest increase was at Beatrix, which increased by R142 million mainly due to a decrease in reserves at
South shaft, which substantially increased the amortisation rate of that shaft.
At the international operations the increase of R753 million was mainly due to the inclusion of the first year’s amortisation from
Cerro Corona of R351 million and R288 million due to the weaker rand. In Ghana, which is dollar based, amortisation increased
from US$60 million in F2008 to US$74 million in F2009. The majority of this increase was due to the depreciation of the new plant
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
97
expansion at Tarkwa and to a lesser degree an increase in the pre-strip amortisation rates at the Damang main pit and Tarkwa’s
Teberebie cut-back.
In Australia, amortisation increased from A$119 million in F2008 to A$142 million in F2009. This was mainly due to an increase in
underground mining at Agnew, especially at Main Lode, necessitated by the depletion of Songvang stockpiles, and at St Ives, due
to increased production from Leviathan open pit and the new underground mines, Cave Rocks and Belleisle.
Notional cash expenditure (NCE)
Notional cash expenditure is defined as operating costs (including general and administration costs) plus capital expenditure, which
includes brownfields exploration, and is reported on a per ounce basis. The objective is to provide the all-in cost for the Group, and
for each operation. The NCE per ounce is an important measure, as it determines how much free cash flow is generated in order
to pay taxation, interest, greenfields exploration and dividends.
Year ended 30 June 2009
Year ended 30 June 2008
Gold Operating
Capital
costs expenditure
US$mil
US$mil
produced
(’000ozs)
NCE
US$/oz
produced
(’000ozs)
Gold Operating
Capital
costs expenditure
US$mil
US$mil
South Africa
(cid:115)(cid:0)(cid:0)(cid:36)(cid:82)(cid:73)(cid:69)(cid:70)(cid:79)(cid:78)(cid:84)(cid:69)(cid:73)(cid:78)(cid:0)
(cid:115)(cid:0)(cid:0)(cid:43)(cid:76)(cid:79)(cid:79)(cid:70)(cid:0)
(cid:115)(cid:0)(cid:0)(cid:34)(cid:69)(cid:65)(cid:84)(cid:82)(cid:73)(cid:88)(cid:0)
(cid:115)(cid:0)(cid:0)(cid:51)(cid:79)(cid:85)(cid:84)(cid:72)(cid:0)(cid:36)(cid:69)(cid:69)(cid:80)(cid:0)
829.9
643.0
391.1
174.7
391.8
342.3
226.1
131.9
114.8
106.4
69.9
113.3
610
698
757
1,403
928.0
820.9
438.1
232.1
403.4
370.0
237.2
173.8
139.8
123.5
79.3
107.9
NCE
US$/oz
585
601
723
1,214
South African operations
2,038.7
1,092.1
404.4
734
2,419.1
1,184.4
450.5
676
Ghana
(cid:115)(cid:0)(cid:0)(cid:52)(cid:65)(cid:82)(cid:75)(cid:87)(cid:65)(cid:0)
(cid:115)(cid:0)(cid:0)(cid:36)(cid:65)(cid:77)(cid:65)(cid:78)(cid:71)(cid:0)
Peru – Cerro Corona
Australia
(cid:115)(cid:0)(cid:0)(cid:51)(cid:84)(cid:0)(cid:41)(cid:86)(cid:69)(cid:83)(cid:0)
(cid:115)(cid:0)(cid:0)(cid:33)(cid:71)(cid:78)(cid:69)(cid:87)(cid:0)
612.4
200.4
219.3
428.3
192.1
338.1
132.4
86.4
255.4
74.9
201.1
16.9
116.8
68.8
30.8
881
745
926
757
550
646.1
194.2
283.2
118.1
212.0
28.1
417.7
203.7
241.5
82.5
107.9
33.1
International operations
1,652.5
887.2
434.4
800
1,461.7
725.3
381.1
Peru – Cerro Corona (project)
348.4
766
753
836
568
757
Group operations/projects
3,691.2
1,979.3
838.8
763
3,880.8
1,909.7
1,180.0
796
The above calculation is based on the average rand to the US dollar exchange rate for the year of 9.01 and 7.27 for F2009 and
F2008 respectively.
The NCE for F2009 of US$763 per ounce is lower than the US$796 per ounce achieved in F2008 because of the lower capital
expenditure due to the completion of our growth projects in Peru, Ghana and Australia during the year, partially offset by the lower
production and higher operating costs.
Net operating profit
As a consequence of the foregoing, net operating profit increased by 22 per cent from R6,015 million in F2008 to R7,321 million in
F2009, with the higher gold price being the main contributor.
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98
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
MANAGEMENT’S DISCUSSION AND ANALYSIS OF THE FINANCIAL
STATEMENTS continued
INVESTMENT INCOME
Income from investments was flat at R225 million.
The R225 million in F2009 comprises R12 million dividends received, R82 million interest received on the environmental rehabilitation
trust funds and R131 million interest received on other cash balances.
The R227 million in F2008 comprises R34 million dividends received, R63 million interest received on the environmental rehabilitation
trust funds and R130 million interest received on other cash balances.
Dividends received are lower in F2009 at R12 million and comprise R11 million dividend received on preference shares held in a
wholly owned subsidiary of Mvela Resources Limited and R1 million dividend received from Troy Resources NL. The reason for the
decrease is the settlement of the preference shares in March 2009.
Interest received on the environmental rehabilitation trust funds increased from R63 million in F2008 to R82 million in F2009 due to
higher investment returns achieved by the funds and higher balances invested in F2009.
Interest on other cash balances remained relatively flat at R130 million in F2008 and R131 million in F2009.
FINANCE EXPENSE
Finance expense increased from R587 million in F2008 to R873 million in F2009.
The R873 million finance expense in F2009 comprises R18 million interest paid on the Mvela loan, R807 million in respect of other
interest paid, preference share interest of R88 million and R38 million environmental rehabilitation interest charge, partially offset by
interest capitalised of R78 million.
The R587 million finance expense in F2008 comprises R63 million interest paid on the Mvela loan, R516 million in respect of other
interest paid, preference share interest of R19 million and R47 million environmental rehabilitation interest charge, partially offset
by interest capitalised of R58 million.
Interest paid on the Mvela loan decreased from R63 million in F2008 to R18 million in F2009. The lower interest paid is due to the
capital amount owing decreasing as capital repayments were made against the loan as well as the final repayment of the loan on
17 March 2009.
Other interest paid increased from R516 million in F2008 to R807 million in F2009. The charge in F2009 comprises:
(cid:115)(cid:0)(cid:0)(cid:0)(cid:50)(cid:19)(cid:24)(cid:19)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84)(cid:0)(cid:80)(cid:65)(cid:73)(cid:68)(cid:0)(cid:79)(cid:78)(cid:0)(cid:76)(cid:79)(cid:67)(cid:65)(cid:76)(cid:0)(cid:66)(cid:79)(cid:82)(cid:82)(cid:79)(cid:87)(cid:73)(cid:78)(cid:71)(cid:83)(cid:0)(cid:82)(cid:65)(cid:73)(cid:83)(cid:69)(cid:68)(cid:0)(cid:84)(cid:79)(cid:0)(cid:70)(cid:73)(cid:78)(cid:65)(cid:78)(cid:67)(cid:69)(cid:0)(cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76)(cid:0)(cid:69)(cid:88)(cid:80)(cid:69)(cid:78)(cid:68)(cid:73)(cid:84)(cid:85)(cid:82)(cid:69)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:79)(cid:80)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0)(cid:67)(cid:79)(cid:83)(cid:84)(cid:83)(cid:0)(cid:66)(cid:89)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:36)(cid:82)(cid:73)(cid:69)(cid:70)(cid:79)(cid:78)(cid:84)(cid:69)(cid:73)(cid:78)(cid:12)(cid:0)(cid:43)(cid:76)(cid:79)(cid:79)(cid:70)(cid:0)
and South Deep mines;
(cid:115)(cid:0)(cid:0)(cid:0)(cid:50)(cid:19)(cid:20)(cid:17)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:78)(cid:0)(cid:70)(cid:79)(cid:82)(cid:87)(cid:65)(cid:82)(cid:68)(cid:0)(cid:67)(cid:79)(cid:86)(cid:69)(cid:82)(cid:0)(cid:67)(cid:79)(cid:83)(cid:84)(cid:83)(cid:0)(cid:70)(cid:79)(cid:82)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:70)(cid:79)(cid:82)(cid:69)(cid:73)(cid:71)(cid:78)(cid:0)(cid:69)(cid:88)(cid:67)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69)(cid:0)(cid:67)(cid:79)(cid:78)(cid:84)(cid:82)(cid:65)(cid:67)(cid:84)(cid:0)(cid:84)(cid:65)(cid:75)(cid:69)(cid:78)(cid:0)(cid:79)(cid:85)(cid:84)(cid:0)(cid:70)(cid:79)(cid:82)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:82)(cid:69)(cid:86)(cid:79)(cid:76)(cid:86)(cid:73)(cid:78)(cid:71)(cid:0)(cid:67)(cid:82)(cid:69)(cid:68)(cid:73)(cid:84)(cid:0)(cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:0)(cid:50)(cid:20)(cid:17)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84)(cid:0)(cid:80)(cid:65)(cid:73)(cid:68)(cid:0)(cid:79)(cid:78)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:82)(cid:69)(cid:86)(cid:79)(cid:76)(cid:86)(cid:73)(cid:78)(cid:71)(cid:0)(cid:67)(cid:82)(cid:69)(cid:68)(cid:73)(cid:84)(cid:0)(cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0)(cid:70)(cid:79)(cid:82)(cid:0)(cid:80)(cid:65)(cid:82)(cid:84)(cid:73)(cid:65)(cid:76)(cid:0)(cid:70)(cid:85)(cid:78)(cid:68)(cid:73)(cid:78)(cid:71)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:35)(cid:69)(cid:82)(cid:82)(cid:79)(cid:0)(cid:35)(cid:79)(cid:82)(cid:79)(cid:78)(cid:65)(cid:0)(cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76)(cid:0)(cid:69)(cid:88)(cid:80)(cid:69)(cid:78)(cid:68)(cid:73)(cid:84)(cid:85)(cid:82)(cid:69)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:80)(cid:85)(cid:82)(cid:67)(cid:72)(cid:65)(cid:83)(cid:69)(cid:83)(cid:0)
of further investments in Sino Gold Limited;
(cid:115)(cid:0)(cid:0)(cid:50)(cid:18)(cid:22)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84)(cid:0)(cid:80)(cid:65)(cid:73)(cid:68)(cid:0)(cid:79)(cid:78)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:80)(cid:82)(cid:79)(cid:74)(cid:69)(cid:67)(cid:84)(cid:0)(cid:70)(cid:73)(cid:78)(cid:65)(cid:78)(cid:67)(cid:69)(cid:0)(cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0)(cid:84)(cid:65)(cid:75)(cid:69)(cid:78)(cid:0)(cid:79)(cid:85)(cid:84)(cid:0)(cid:66)(cid:89)(cid:0)(cid:39)(cid:79)(cid:76)(cid:68)(cid:0)(cid:38)(cid:73)(cid:69)(cid:76)(cid:68)(cid:83)(cid:0)(cid:44)(cid:65)(cid:0)(cid:35)(cid:73)(cid:77)(cid:65)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:0)(cid:50)(cid:17)(cid:20)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:78)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:67)(cid:79)(cid:77)(cid:77)(cid:69)(cid:82)(cid:67)(cid:73)(cid:65)(cid:76)(cid:0)(cid:80)(cid:65)(cid:80)(cid:69)(cid:82)(cid:0)(cid:73)(cid:83)(cid:83)(cid:85)(cid:69)(cid:68)(cid:0)(cid:68)(cid:85)(cid:82)(cid:73)(cid:78)(cid:71)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:70)(cid:79)(cid:85)(cid:82)(cid:84)(cid:72)(cid:0)(cid:81)(cid:85)(cid:65)(cid:82)(cid:84)(cid:69)(cid:82)(cid:0)(cid:84)(cid:79)(cid:0)(cid:70)(cid:73)(cid:78)(cid:65)(cid:78)(cid:67)(cid:69)(cid:0)(cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76)(cid:0)(cid:69)(cid:88)(cid:80)(cid:69)(cid:78)(cid:68)(cid:73)(cid:84)(cid:85)(cid:82)(cid:69)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:79)(cid:80)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0)(cid:67)(cid:79)(cid:83)(cid:84)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)
divisions of GFIMSA; and
(cid:115)(cid:0)(cid:0)(cid:52)(cid:72)(cid:69)(cid:0)(cid:66)(cid:65)(cid:76)(cid:65)(cid:78)(cid:67)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:18)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:82)(cid:69)(cid:76)(cid:65)(cid:84)(cid:69)(cid:68)(cid:0)(cid:84)(cid:79)(cid:0)(cid:83)(cid:85)(cid:78)(cid:68)(cid:82)(cid:89)(cid:0)(cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84)(cid:0)(cid:80)(cid:65)(cid:89)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83)(cid:14)
The charge in F2008 comprises:
(cid:115)(cid:0)(cid:0)(cid:50)(cid:18)(cid:16)(cid:21)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:78)(cid:0)(cid:70)(cid:79)(cid:82)(cid:87)(cid:65)(cid:82)(cid:68)(cid:0)(cid:67)(cid:79)(cid:86)(cid:69)(cid:82)(cid:0)(cid:67)(cid:79)(cid:83)(cid:84)(cid:83)(cid:0)(cid:70)(cid:79)(cid:82)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:70)(cid:79)(cid:82)(cid:69)(cid:73)(cid:71)(cid:78)(cid:0)(cid:69)(cid:88)(cid:67)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69)(cid:0)(cid:67)(cid:79)(cid:78)(cid:84)(cid:82)(cid:65)(cid:67)(cid:84)(cid:0)(cid:84)(cid:65)(cid:75)(cid:69)(cid:78)(cid:0)(cid:79)(cid:85)(cid:84)(cid:0)(cid:70)(cid:79)(cid:82)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:82)(cid:69)(cid:86)(cid:79)(cid:76)(cid:86)(cid:73)(cid:78)(cid:71)(cid:0)(cid:67)(cid:82)(cid:69)(cid:68)(cid:73)(cid:84)(cid:0)(cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:50)(cid:17)(cid:22)(cid:25)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:78)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:82)(cid:69)(cid:86)(cid:79)(cid:76)(cid:86)(cid:73)(cid:78)(cid:71)(cid:0)(cid:67)(cid:82)(cid:69)(cid:68)(cid:73)(cid:84)(cid:0)(cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0)(cid:84)(cid:65)(cid:75)(cid:69)(cid:78)(cid:0)(cid:79)(cid:85)(cid:84)(cid:0)(cid:73)(cid:78)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:80)(cid:82)(cid:73)(cid:79)(cid:82)(cid:0)(cid:89)(cid:69)(cid:65)(cid:82)(cid:0)(cid:73)(cid:78)(cid:0)(cid:84)(cid:69)(cid:82)(cid:77)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:51)(cid:79)(cid:85)(cid:84)(cid:72)(cid:0)(cid:36)(cid:69)(cid:69)(cid:80)(cid:0)(cid:80)(cid:85)(cid:82)(cid:67)(cid:72)(cid:65)(cid:83)(cid:69)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:0)(cid:50)(cid:23)(cid:23)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84)(cid:0)(cid:80)(cid:65)(cid:73)(cid:68)(cid:0)(cid:79)(cid:78)(cid:0)(cid:76)(cid:79)(cid:67)(cid:65)(cid:76)(cid:0)(cid:66)(cid:79)(cid:82)(cid:82)(cid:79)(cid:87)(cid:73)(cid:78)(cid:71)(cid:83)(cid:0)(cid:82)(cid:65)(cid:73)(cid:83)(cid:69)(cid:68)(cid:0)(cid:84)(cid:79)(cid:0)(cid:70)(cid:73)(cid:78)(cid:65)(cid:78)(cid:67)(cid:69)(cid:0)(cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76)(cid:0)(cid:69)(cid:88)(cid:80)(cid:69)(cid:78)(cid:68)(cid:73)(cid:84)(cid:85)(cid:82)(cid:69)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:79)(cid:80)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0)(cid:67)(cid:79)(cid:83)(cid:84)(cid:83)(cid:0)(cid:66)(cid:89)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:36)(cid:82)(cid:73)(cid:69)(cid:70)(cid:79)(cid:78)(cid:84)(cid:69)(cid:73)(cid:78)(cid:12)(cid:0)(cid:43)(cid:76)(cid:79)(cid:79)(cid:70)(cid:0)
and Beatrix divisions of GFIMSA;
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
99
(cid:115)(cid:0)(cid:0)(cid:0)(cid:50)(cid:20)(cid:16)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84)(cid:0)(cid:80)(cid:65)(cid:73)(cid:68)(cid:0)(cid:79)(cid:78)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:82)(cid:69)(cid:86)(cid:79)(cid:76)(cid:86)(cid:73)(cid:78)(cid:71)(cid:0)(cid:67)(cid:82)(cid:69)(cid:68)(cid:73)(cid:84)(cid:0)(cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0)(cid:70)(cid:79)(cid:82)(cid:0)(cid:80)(cid:65)(cid:82)(cid:84)(cid:73)(cid:65)(cid:76)(cid:0)(cid:70)(cid:85)(cid:78)(cid:68)(cid:73)(cid:78)(cid:71)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:35)(cid:69)(cid:82)(cid:82)(cid:79)(cid:0)(cid:35)(cid:79)(cid:82)(cid:79)(cid:78)(cid:65)(cid:0)(cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76)(cid:0)(cid:69)(cid:88)(cid:80)(cid:69)(cid:78)(cid:68)(cid:73)(cid:84)(cid:85)(cid:82)(cid:69)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:80)(cid:85)(cid:82)(cid:67)(cid:72)(cid:65)(cid:83)(cid:69)(cid:83)(cid:0)
of further investments in Sino Gold Limited;
(cid:115)(cid:0)(cid:0)(cid:50)(cid:17)(cid:24)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84)(cid:0)(cid:80)(cid:65)(cid:73)(cid:68)(cid:0)(cid:79)(cid:78)(cid:0)(cid:65)(cid:0)(cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0)(cid:84)(cid:65)(cid:75)(cid:69)(cid:78)(cid:0)(cid:79)(cid:85)(cid:84)(cid:0)(cid:70)(cid:79)(cid:82)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:80)(cid:85)(cid:82)(cid:67)(cid:72)(cid:65)(cid:83)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:53)(cid:78)(cid:67)(cid:76)(cid:69)(cid:0)(cid:40)(cid:65)(cid:82)(cid:82)(cid:89)(cid:7)(cid:83)(cid:0)(cid:77)(cid:73)(cid:78)(cid:69)(cid:82)(cid:65)(cid:76)(cid:0)(cid:82)(cid:73)(cid:71)(cid:72)(cid:84)(cid:83)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0)(cid:0)(cid:52)(cid:72)(cid:69)(cid:0)(cid:66)(cid:65)(cid:76)(cid:65)(cid:78)(cid:67)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:23)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:82)(cid:69)(cid:76)(cid:65)(cid:84)(cid:69)(cid:68)(cid:0)(cid:84)(cid:79)(cid:0)(cid:83)(cid:85)(cid:78)(cid:68)(cid:82)(cid:89)(cid:0)(cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84)(cid:0)(cid:80)(cid:65)(cid:89)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83)(cid:14)
The R88 million preference share interest relates to R1,200 million raised by the issue of the said shares to Rand Merchant Bank
on 24 December 2007. The preference share interest is rolled up and will be paid only on redemption date. R600 million of the
preference shares, with an associated interest of R23 million, were redeemed in October 2008.
During F2009, R78 million of interest was capitalised in terms of IAS 21 Borrowing cost, due to the existence of general borrowings
used to finance long-term projects such as South Deep and Cerro Corona.
During F2008, R58 million of interest was capitalised due to the existence of general borrowings used to finance long-term projects
such as South Deep, Cerro Corona, Driefontein 9 Shaft drop down and the Tarkwa CIL project.
Environmental rehabilitation interest charges decreased from R47 million in F2008 to R38 million in F2009. The decrease in the
charge in F2009 was due to lower discount rates applied in the calculation of the interest charge which is in line with lower inflation
in the current market environment partly offset by higher rehabilitation cost numbers.
Financial instruments
US dollar forward purchases
During F2009 the Group had three different US dollar forward purchase contracts. They were:
– Western Areas US dollar/rand forward purchases – As a result of the draw down under the bridge loan facility to settle the
close-out of the gold derivative structure, US dollar/rand forward cover was purchased during the March 2007 quarter for the
amount of US$551 million for settlement 6 August 2007, at an average forward rate of R7.3279/US$. Subsequent to this date
the cover has been extended for periods between one and three months throughout F2008 and 2009. The forward cover was
also reduced with the partial repayments of US$61 million and US$172 million against the loan on 6 December 2007 and 31
December 2007 respectively.
During F2009, a further amount of US$44 million was repaid against the loan and the forward cover was reduced by the same
amount. The balance of the US$274 million forward cover was extended to 15 July 2009, being the next repayment date on
the loan, at an average forward rate of R8.0893/US$. For accounting purposes, this forward cover has been designated as a
hedging instrument. As a result the gains and losses on the forward cover have been accounted for under gain/(loss) on foreign
exchange along with gains and losses on the underlying loan that has been hedged. The forward cover points have been
accounted for as part of interest.
– South Africa: US dollar/rand forward sales – In October 2008, US$150 million of expected gold revenue for the December
quarter was sold forward on behalf of the South African operations. In December 2008, the US$150 million was extended to
the March quarter at an average forward rate of R10.3818. During the March quarter US$30 million was settled at a gain for the
quarter of R7 million. The outstanding balance of US$120 million was extended into the June quarter at an average forward rate
of R10.2595. In the June quarter, the remaining forward cover of US$120 million was partly delivered into and the balance closed
out, resulting in a gain of R54 million. This was accounted for in the income statement in the June quarter.
– Australia: US dollar/Australian dollar forward sales – In October 2008, US$70 million of expected gold revenue for the December
quarter was sold forward on behalf of the Australian operations. In December 2008, US$56 million was extended to the March
quarter at an average forward rate of A$0.6650. During the March quarter an additional US$8 million of the same instruments
were taken out. The total of US$64 million was extended into the June quarter at an average forward rate of A$0.6445. In the
June quarter the forward cover of US$64 million was partly delivered into and the balance closed out, resulting in a gain of
A$2 million (R13 million). This was accounted for in the income statement.
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100
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
MANAGEMENT’S DISCUSSION AND ANALYSIS OF THE FINANCIAL
STATEMENTS continued
During F2008 the Group had two different US dollar/rand forward purchase contracts. They were:
– As a result of the draw down under the bridge loan facility to settle the close-out of the gold derivative structure, US dollar/
rand forward cover was purchased during the March 2007 quarter for the amount of US$551 million for settlement 6 August
2007, at an average forward rate of R7.3279/US$. Subsequent to this date the cover was extended for periods between one
and three months throughout the year. The forward cover was also reduced with the partial repayments of US$61 million and
US$172 million against the loan on 6 December 2007 and 31 December 2007 respectively.
The balance of the US$318 million forward cover was extended on 6 June 2008 to 7 July 2008 at a rate of R7.8479/US$, based
on an average spot rate of R7.7799/US$. For accounting purposes, this forward cover has been designated as a hedging
instrument. As a result the gains and losses on the forward cover have been accounted for under gain/(loss) on foreign exchange
along with gains and losses on the underlying loan that has been hedged. The forward cover points have been accounted for
as part of interest.
– In anticipation of increased US dollar denominated capital expenditure on the Cerro Corona mine, a US$90 million forward
exchange contract at a rate of R6.9200 was purchased. This was settled at a rate of R8.1536 resulting in a gain of R85 million.
International petroleum exchange gasoil call option
In F2009, the Ghanaian operations purchased four monthly Asian style Intercontinental exchange (ICE) gasoil call options with strike
prices ranging from US$0.90 per litre to US$1.11 per litre, which equates to a Brent crude price of between US$92 and US$142
per barrel, with final expiry on 28 February 2010.
The call options resulted in a premium of US$10.4 million, paid upfront.
The Australian operations purchased two monthly Asian style Singapore 0.5 gasoil call options with strike prices ranging from
US$0.9128 per litre to US$1.0950 per litre with a final expiry on 28 February 2010. The call options resulted in a premium of
A$4.4 million, paid upfront.
On 28 June 2007 Gold Fields Ghana Holdings (BVI) Limited purchased a three month Asian style (average monthly price) call
option in respect of 15.0 million litres of diesel, settled monthly, to protect against adverse energy price movements. The call option
resulted in a premium of US$0.3 million, paid upfront, at a strike price of US$0.5572 per litre. On 20 August 2007 Gold Fields
Ghana Holdings (BVI) Limited purchased a further three month Asian style call option in respect of 15.0 million litres of diesel, settled
monthly, to protect against adverse energy price movements. The call option resulted in a premium of US$0.4 million, paid upfront,
at a strike price of US$0.5572 per litre.
Copper financial instruments
During June 2009 8,705 tons of Cerro Corona’s expected copper production for F2010 was sold forward for monthly deliveries,
starting on 24 June 2009 to 23 June 2010. The average forward price for the monthly deliveries is US$5,001 per ton. An additional
8,705 tons of Cerro Corona’s expected copper production for F2010 was hedged by means of a zero cost collar, guaranteeing a
minimum price of US$4,600 per ton with full participation up to a maximum price of US$5,400 per ton.
Realised (loss)/gain on financial instruments
The realised portion on financial instruments moved from a gain of R86 million in F2008 to a loss of R56 million in F2009. The F2009
realised loss of R56 million comprises mainly:
(cid:115)(cid:0)(cid:0)(cid:44)(cid:79)(cid:83)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:17)(cid:18)(cid:22)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:78)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:78)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:65)(cid:76)(cid:0)(cid:80)(cid:69)(cid:84)(cid:82)(cid:79)(cid:76)(cid:69)(cid:85)(cid:77)(cid:0)(cid:69)(cid:88)(cid:67)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69)(cid:0)(cid:71)(cid:65)(cid:83)(cid:79)(cid:73)(cid:76)(cid:0)(cid:67)(cid:65)(cid:76)(cid:76)(cid:0)(cid:79)(cid:80)(cid:84)(cid:73)(cid:79)(cid:78)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:44)(cid:79)(cid:83)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:19)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:78)(cid:0)(cid:65)(cid:0)(cid:53)(cid:51)(cid:0)(cid:68)(cid:79)(cid:76)(cid:76)(cid:65)(cid:82)(cid:15)(cid:82)(cid:65)(cid:78)(cid:68)(cid:0)(cid:67)(cid:85)(cid:82)(cid:82)(cid:69)(cid:78)(cid:67)(cid:89)(cid:0)(cid:72)(cid:69)(cid:68)(cid:71)(cid:69)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:39)(cid:65)(cid:73)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:22)(cid:17)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:78)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:53)(cid:51)(cid:0)(cid:68)(cid:79)(cid:76)(cid:76)(cid:65)(cid:82)(cid:15)(cid:82)(cid:65)(cid:78)(cid:68)(cid:0)(cid:70)(cid:79)(cid:82)(cid:87)(cid:65)(cid:82)(cid:68)(cid:0)(cid:83)(cid:65)(cid:76)(cid:69)(cid:83)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0)(cid:0)(cid:39)(cid:65)(cid:73)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:17)(cid:19)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:78)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:53)(cid:51)(cid:0)(cid:68)(cid:79)(cid:76)(cid:76)(cid:65)(cid:82)(cid:15)(cid:33)(cid:85)(cid:83)(cid:84)(cid:82)(cid:65)(cid:76)(cid:73)(cid:65)(cid:78)(cid:0)(cid:68)(cid:79)(cid:76)(cid:76)(cid:65)(cid:82)(cid:0)(cid:70)(cid:79)(cid:82)(cid:87)(cid:65)(cid:82)(cid:68)(cid:0)(cid:83)(cid:65)(cid:76)(cid:69)(cid:83)(cid:14)
The F2008 realised gain of R86 million comprises:
(cid:115)(cid:0)(cid:0)(cid:39)(cid:65)(cid:73)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:24)(cid:21)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:78)(cid:0)(cid:65)(cid:0)(cid:53)(cid:51)(cid:0)(cid:68)(cid:79)(cid:76)(cid:76)(cid:65)(cid:82)(cid:15)(cid:82)(cid:65)(cid:78)(cid:68)(cid:0)(cid:67)(cid:85)(cid:82)(cid:82)(cid:69)(cid:78)(cid:67)(cid:89)(cid:0)(cid:72)(cid:69)(cid:68)(cid:71)(cid:69)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:39)(cid:65)(cid:73)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:17)(cid:16)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:78)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:78)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:65)(cid:76)(cid:0)(cid:80)(cid:69)(cid:84)(cid:82)(cid:79)(cid:76)(cid:69)(cid:85)(cid:77)(cid:0)(cid:69)(cid:88)(cid:67)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69)(cid:0)(cid:71)(cid:65)(cid:83)(cid:79)(cid:73)(cid:76)(cid:0)(cid:67)(cid:65)(cid:76)(cid:76)(cid:0)(cid:79)(cid:80)(cid:84)(cid:73)(cid:79)(cid:78)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0)(cid:0)(cid:44)(cid:79)(cid:83)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:25)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:78)(cid:0)(cid:86)(cid:65)(cid:82)(cid:73)(cid:79)(cid:85)(cid:83)(cid:0)(cid:87)(cid:65)(cid:82)(cid:82)(cid:65)(cid:78)(cid:84)(cid:83)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:79)(cid:80)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:0)(cid:67)(cid:79)(cid:78)(cid:86)(cid:69)(cid:82)(cid:84)(cid:69)(cid:68)(cid:0)(cid:84)(cid:79)(cid:0)(cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83)(cid:14)
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
101
Gain on foreign exchange
Gain on foreign exchange increased from R14 million in F2008 to R92 million in F2009.
The gain of R92 million in F2009 comprises:
(cid:115)(cid:0)(cid:0)(cid:39)(cid:65)(cid:73)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:17)(cid:18)(cid:21)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:78)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:82)(cid:69)(cid:80)(cid:65)(cid:89)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:79)(cid:70)(cid:0)(cid:33)(cid:85)(cid:83)(cid:84)(cid:82)(cid:65)(cid:76)(cid:73)(cid:65)(cid:78)(cid:0)(cid:68)(cid:79)(cid:76)(cid:76)(cid:65)(cid:82)(cid:0)(cid:68)(cid:69)(cid:78)(cid:79)(cid:77)(cid:73)(cid:78)(cid:65)(cid:84)(cid:69)(cid:68)(cid:0)(cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:67)(cid:79)(cid:77)(cid:80)(cid:65)(cid:78)(cid:89)(cid:0)(cid:76)(cid:79)(cid:65)(cid:78)(cid:83)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:39)(cid:65)(cid:73)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:19)(cid:21)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:78)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:53)(cid:51)(cid:0)(cid:68)(cid:79)(cid:76)(cid:76)(cid:65)(cid:82)(cid:0)(cid:80)(cid:82)(cid:79)(cid:67)(cid:69)(cid:69)(cid:68)(cid:83)(cid:0)(cid:82)(cid:69)(cid:67)(cid:69)(cid:73)(cid:86)(cid:69)(cid:68)(cid:0)(cid:73)(cid:78)(cid:0)(cid:82)(cid:69)(cid:83)(cid:80)(cid:69)(cid:67)(cid:84)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:51)(cid:79)(cid:85)(cid:84)(cid:72)(cid:0)(cid:36)(cid:69)(cid:69)(cid:80)(cid:0)(cid:70)(cid:73)(cid:82)(cid:69)(cid:0)(cid:73)(cid:78)(cid:83)(cid:85)(cid:82)(cid:65)(cid:78)(cid:67)(cid:69)(cid:0)(cid:67)(cid:76)(cid:65)(cid:73)(cid:77)(cid:0)(cid:79)(cid:70)(cid:0)(cid:53)(cid:51)(cid:4)(cid:17)(cid:23)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0)(cid:0)(cid:0)(cid:37)(cid:88)(cid:67)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69)(cid:0)(cid:76)(cid:79)(cid:83)(cid:83)(cid:69)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:22)(cid:24)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:78)(cid:0)(cid:67)(cid:65)(cid:83)(cid:72)(cid:0)(cid:66)(cid:65)(cid:76)(cid:65)(cid:78)(cid:67)(cid:69)(cid:83)(cid:0)(cid:72)(cid:69)(cid:76)(cid:68)(cid:0)(cid:73)(cid:78)(cid:0)(cid:67)(cid:85)(cid:82)(cid:82)(cid:69)(cid:78)(cid:67)(cid:73)(cid:69)(cid:83)(cid:0)(cid:79)(cid:84)(cid:72)(cid:69)(cid:82)(cid:0)(cid:84)(cid:72)(cid:65)(cid:78)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:70)(cid:85)(cid:78)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:65)(cid:76)(cid:0)(cid:67)(cid:85)(cid:82)(cid:82)(cid:69)(cid:78)(cid:67)(cid:73)(cid:69)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:39)(cid:82)(cid:79)(cid:85)(cid:80)(cid:7)(cid:83)(cid:0)(cid:86)(cid:65)(cid:82)(cid:73)(cid:79)(cid:85)(cid:83)(cid:0)
subsidiary companies.
The gain of R14 million in F2008 comprises exchange gains on foreign currency denominated cash balances within the Group.
Other (costs)/income
Other operating income in F2008 was R68 million compared to other costs of R203 million in F2009. The charge for F2009 is mainly
made up of:
– Restructuring costs at the training academy;
– New loan facility charges;
– Research and development into mechanised mining;
– Fair value write down of the rose cultivars at Living Gold; and
– Sale agreement adjustment with Orezone Resources Inc. with reference to the sale of Essakane in the previous financial year.
The income realised in F2008 was mainly due to a refund of costs from Orezone Resources Inc. of R40 million and an R11 million
fair value adjustment to the rose cultivars in Living Gold.
Share-based payments
IFRS 2 Share-based payments became effective for Gold Fields for the financial year ended 30 June 2006. In terms of IFRS 2,
Gold Fields recognises the cost of share options granted (share-based payments) from 1 July 2005. IFRS 2 requires that all options
granted after 7 November 2002, but not vested by 1 July 2005 be accounted for.
Gold Fields has adopted an appropriate valuation model to fair value the employee share options. The value of the share options
has been determined as of the grant date of the options and has been expensed on a straight-line basis over the vesting period.
Based on this model R303 million was accounted for in F2009 compared to R151 million in F2008. The corresponding entry for the
above adjustments was share-based payment reserve within shareholders’ equity.
The reason for the increase in share-based payments is a modification made to the existing scheme and an additional allocation
made in F2008 (as part of the employee retention strategy) resulting in two allocations being made to employees. The said
modifications and additional allocation were accounted for a full year in F2009 as opposed to only a portion of the year in F2008.
The modification was made due to the fact that subsequent to the implementation of the Share Plan, it became evident that the
XAU index used was not representative of Gold Fields’ peer competitors as it included some companies which are not pure gold
mining companies and a number of relatively small gold producers. Accordingly it was decided that instead of using the XAU index,
Gold Fields’ performance will be measured against only five gold mining companies who can be regarded as peer competitors.
The modification to the scheme resulted in incremental fair value which is being expensed over the remaining vesting period of the
instruments.
Exploration expense
Gold Fields expensed R508 million (US$56 million) on exploration in F2009 compared with R328 million (US$45 million) in F2008.
The bulk of the expenditure has been incurred on a diversified pipeline of projects in Africa, Australia, China and North, South
and Central America. The increase in F2009 is due to spend on advanced stage exploration projects, being Talas in Kyrgyzstan,
Chucapaca in Peru and Sankarani in Mali. Subject to continued exploration success, expenditure is expected to range between
US$50 million and US$80 million in F2010.
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102
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
MANAGEMENT’S DISCUSSION AND ANALYSIS OF THE FINANCIAL
STATEMENTS continued
Share of results of associates after tax
Gold Fields equity accounts for two associates. They are Rand Refinery Limited and Rusoro Mining Limited. The Group’s 35 per
cent share of after tax profits in Rand Refinery Limited was R14 million in F2009 compared to R34 million in F2008. Gold Fields
acquired a 36 per cent stake in Rusoro in F2008 and during F2009 the holding was diluted to 26 per cent consequent upon a private
placement by Rusoro. The after tax loss of R43 million for the seven months holding period in F2008 compares to a R156 million
loss realised in F2009. The acquisition of the Rusoro stake is described under discontinued operations below.
Restructuring costs
The charge for restructuring costs increased from R65 million in F2008 to R126 million in F2009. The costs in F2009 relate to
restructuring costs at the Driefontein, Kloof, Beatrix and South Deep operations. The costs of R65 million in F2008 relate to a
provision made for the anticipated retrenchment of approximately 2,000 employees at the South Deep mine following the closure
of the VCR section.
South Deep insurance claim
South Deep insurance claim income of R131 million relates to the receipt of the insurance claim from the South Deep fire in F2007.
Driefontein 9 shaft closure costs
Closure costs of R24 million were incurred in F2008 and relate to Driefontein’s 9 shaft project which was suspended due to the lack
of power supply. During F2009, there was a reversal of an over provision of R2 million after finalisation of the total closure costs.
Impairment of investments and assets
Impairment of investments and assets increased from R51 million in F2008 to R1,210 million in F2009.
The charge in F2009 of R1,210 comprises impairment of R1,066 million of Rusoro to its market value of R390 million (US$48 million)
in terms of IAS 36 Impairment of assets. However, management’s view of the investment in Rusoro is that its inherent value is
significantly greater than its current market value. The balance of the impairment charge relates to a write down of R144 million on
sundry offshore listed exploration investments to its market value at 30 June 2009.
The charge of R51 million in F2008 comprises R32 million relating to the St Ives’ Junction mine and the original Leviathan pit which
have been depleted and R19 million at Agnew, an impairment of the rehabilitation assets relating to old slimes dams.
The Group assesses at each reporting date whether there are indicators of impairment for any of its assets. If there are any
indicators of impairment, the asset’s recoverable amount needs to be estimated. The carrying value is compared to the higher of
“value in use” or “fair value less costs to sell”.
Various internal and external sources of information were considered and management has concluded that no indicators of
impairment of assets exist at 30 June 2009.
Unlike assets, goodwill needs to be tested for impairment annually.
The following estimates and assumptions were used by management when reviewing the long-term assets and associated goodwill
for impairment:
(cid:115)(cid:0)(cid:0)(cid:0)(cid:33)(cid:0)(cid:71)(cid:79)(cid:76)(cid:68)(cid:0)(cid:80)(cid:82)(cid:73)(cid:67)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:18)(cid:20)(cid:21)(cid:12)(cid:16)(cid:16)(cid:16)(cid:0)(cid:80)(cid:69)(cid:82)(cid:0)(cid:75)(cid:73)(cid:76)(cid:79)(cid:71)(cid:82)(cid:65)(cid:77)(cid:0)(cid:70)(cid:79)(cid:82)(cid:0)(cid:38)(cid:18)(cid:16)(cid:17)(cid:16)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:18)(cid:16)(cid:17)(cid:17)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:50)(cid:18)(cid:24)(cid:16)(cid:12)(cid:16)(cid:16)(cid:16)(cid:0)(cid:80)(cid:69)(cid:82)(cid:0)(cid:75)(cid:73)(cid:76)(cid:79)(cid:71)(cid:82)(cid:65)(cid:77)(cid:0)(cid:84)(cid:72)(cid:69)(cid:82)(cid:69)(cid:65)(cid:70)(cid:84)(cid:69)(cid:82)(cid:0)(cid:8)(cid:18)(cid:16)(cid:16)(cid:24)(cid:26)(cid:0)(cid:50)(cid:18)(cid:17)(cid:16)(cid:12)(cid:16)(cid:16)(cid:16)(cid:0)(cid:80)(cid:69)(cid:82)(cid:0)(cid:75)(cid:73)(cid:76)(cid:79)(cid:71)(cid:82)(cid:65)(cid:77)(cid:9)(cid:12)
(cid:115)(cid:0)(cid:0)(cid:36)(cid:73)(cid:83)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84)(cid:0)(cid:82)(cid:65)(cid:84)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:22)(cid:0)(cid:80)(cid:69)(cid:82)(cid:0)(cid:67)(cid:69)(cid:78)(cid:84)(cid:12)
(cid:115)(cid:0)(cid:0)(cid:52)(cid:72)(cid:69)(cid:0)(cid:69)(cid:88)(cid:84)(cid:82)(cid:65)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:80)(cid:82)(cid:79)(cid:86)(cid:69)(cid:68)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:80)(cid:82)(cid:79)(cid:66)(cid:65)(cid:66)(cid:76)(cid:69)(cid:0)(cid:82)(cid:69)(cid:83)(cid:69)(cid:82)(cid:86)(cid:69)(cid:83)(cid:0)(cid:65)(cid:83)(cid:0)(cid:80)(cid:69)(cid:82)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:77)(cid:79)(cid:83)(cid:84)(cid:0)(cid:82)(cid:69)(cid:67)(cid:69)(cid:78)(cid:84)(cid:0)(cid:76)(cid:73)(cid:70)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:77)(cid:73)(cid:78)(cid:69)(cid:0)(cid:80)(cid:76)(cid:65)(cid:78)(cid:12)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0)(cid:0)(cid:47)(cid:80)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0)(cid:67)(cid:79)(cid:83)(cid:84)(cid:83)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76)(cid:0)(cid:69)(cid:88)(cid:80)(cid:69)(cid:78)(cid:68)(cid:73)(cid:84)(cid:85)(cid:82)(cid:69)(cid:0)(cid:69)(cid:83)(cid:84)(cid:73)(cid:77)(cid:65)(cid:84)(cid:69)(cid:83)(cid:0)(cid:65)(cid:83)(cid:0)(cid:80)(cid:69)(cid:82)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:77)(cid:79)(cid:83)(cid:84)(cid:0)(cid:82)(cid:69)(cid:67)(cid:69)(cid:78)(cid:84)(cid:0)(cid:76)(cid:73)(cid:70)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:77)(cid:73)(cid:78)(cid:69)(cid:0)(cid:80)(cid:76)(cid:65)(cid:78)(cid:14)
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
103
In both F2009 and F2008 the application of the above estimates and assumptions did not result in any impairment charge.
(Loss)/profit on disposal of investments
Loss on sale of investments in F2009 amounted to R148 million compared to a profit of R1,416 million in F2008.
The major disposals comprising the R148 million loss in F2009 were:
(cid:115)(cid:0)(cid:0)(cid:0)(cid:50)(cid:18)(cid:16)(cid:25)(cid:0) (cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0) (cid:76)(cid:79)(cid:83)(cid:83)(cid:0) (cid:82)(cid:69)(cid:83)(cid:85)(cid:76)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0) (cid:70)(cid:82)(cid:79)(cid:77)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:69)(cid:88)(cid:67)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69)(cid:0) (cid:79)(cid:70)(cid:0) (cid:20)(cid:17)(cid:14)(cid:23)(cid:0) (cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0) (cid:47)(cid:82)(cid:69)(cid:90)(cid:79)(cid:78)(cid:69)(cid:0) (cid:50)(cid:69)(cid:83)(cid:79)(cid:85)(cid:82)(cid:67)(cid:69)(cid:83)(cid:0) (cid:41)(cid:78)(cid:67)(cid:14)(cid:0) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83)(cid:0) (cid:70)(cid:79)(cid:82)(cid:0) (cid:19)(cid:14)(cid:19)(cid:0) (cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0) (cid:41)(cid:33)(cid:45)(cid:39)(cid:79)(cid:76)(cid:68)(cid:0) (cid:44)(cid:73)(cid:77)(cid:73)(cid:84)(cid:69)(cid:68)(cid:0)
shares as a result of the acquisition of all Orezone shares by IAMGold;
(cid:115)(cid:0)(cid:0)(cid:50)(cid:19)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:76)(cid:79)(cid:83)(cid:83)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:83)(cid:65)(cid:76)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:23)(cid:16)(cid:0)(cid:80)(cid:69)(cid:82)(cid:0)(cid:67)(cid:69)(cid:78)(cid:84)(cid:0)(cid:72)(cid:79)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:0)(cid:73)(cid:78)(cid:0)(cid:41)(cid:50)(cid:35)(cid:33)(cid:0)(cid:8)(cid:48)(cid:84)(cid:89)(cid:9)(cid:0)(cid:44)(cid:73)(cid:77)(cid:73)(cid:84)(cid:69)(cid:68)(cid:0)(cid:39)(cid:82)(cid:79)(cid:85)(cid:80)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:50)(cid:17)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:76)(cid:79)(cid:83)(cid:83)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:83)(cid:65)(cid:76)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:16)(cid:14)(cid:17)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83)(cid:0)(cid:73)(cid:78)(cid:0)(cid:44)(cid:65)(cid:75)(cid:79)(cid:84)(cid:65)(cid:0)(cid:50)(cid:69)(cid:83)(cid:79)(cid:85)(cid:82)(cid:67)(cid:69)(cid:83)(cid:0)(cid:41)(cid:78)(cid:67)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0)(cid:0)(cid:50)(cid:22)(cid:21)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:71)(cid:65)(cid:73)(cid:78)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:83)(cid:85)(cid:66)(cid:83)(cid:69)(cid:81)(cid:85)(cid:69)(cid:78)(cid:84)(cid:0)(cid:83)(cid:65)(cid:76)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:65)(cid:66)(cid:79)(cid:86)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:73)(cid:79)(cid:78)(cid:69)(cid:68)(cid:0)(cid:19)(cid:14)(cid:19)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83)(cid:0)(cid:73)(cid:78)(cid:0)(cid:41)(cid:33)(cid:45)(cid:39)(cid:79)(cid:76)(cid:68)(cid:0)(cid:44)(cid:73)(cid:77)(cid:73)(cid:84)(cid:69)(cid:68)(cid:14)
The major disposals comprising the R1,416 million profit in F2008 were:
(cid:115)(cid:0)(cid:0)(cid:50)(cid:17)(cid:12)(cid:19)(cid:24)(cid:25)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:71)(cid:65)(cid:73)(cid:78)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:83)(cid:65)(cid:76)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:37)(cid:83)(cid:83)(cid:65)(cid:75)(cid:65)(cid:78)(cid:69)(cid:0)(cid:80)(cid:82)(cid:79)(cid:74)(cid:69)(cid:67)(cid:84)(cid:0)(cid:73)(cid:78)(cid:0)(cid:34)(cid:85)(cid:82)(cid:75)(cid:73)(cid:78)(cid:65)(cid:0)(cid:38)(cid:65)(cid:83)(cid:79)(cid:0)(cid:84)(cid:79)(cid:0)(cid:47)(cid:82)(cid:69)(cid:90)(cid:79)(cid:78)(cid:69)(cid:0)(cid:50)(cid:69)(cid:83)(cid:79)(cid:85)(cid:82)(cid:67)(cid:69)(cid:83)(cid:0)(cid:41)(cid:78)(cid:67)(cid:14)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:50)(cid:19)(cid:21)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:71)(cid:65)(cid:73)(cid:78)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:83)(cid:65)(cid:76)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:86)(cid:65)(cid:82)(cid:73)(cid:79)(cid:85)(cid:83)(cid:0)(cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83)(cid:0)(cid:72)(cid:69)(cid:76)(cid:68)(cid:0)(cid:66)(cid:89)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:46)(cid:69)(cid:87)(cid:0)(cid:33)(cid:70)(cid:82)(cid:73)(cid:67)(cid:65)(cid:0)(cid:45)(cid:73)(cid:78)(cid:73)(cid:78)(cid:71)(cid:0)(cid:38)(cid:85)(cid:78)(cid:68)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:50)(cid:17)(cid:21)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:71)(cid:65)(cid:73)(cid:78)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:83)(cid:65)(cid:76)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:17)(cid:20)(cid:14)(cid:24)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83)(cid:0)(cid:73)(cid:78)(cid:0)(cid:37)(cid:77)(cid:69)(cid:68)(cid:0)(cid:45)(cid:73)(cid:78)(cid:73)(cid:78)(cid:71)(cid:0)(cid:48)(cid:85)(cid:66)(cid:76)(cid:73)(cid:67)(cid:0)(cid:44)(cid:73)(cid:77)(cid:73)(cid:84)(cid:69)(cid:68)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:50)(cid:17)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:71)(cid:65)(cid:73)(cid:78)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:83)(cid:65)(cid:76)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:16)(cid:14)(cid:16)(cid:19)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83)(cid:0)(cid:73)(cid:78)(cid:0)(cid:50)(cid:69)(cid:83)(cid:79)(cid:85)(cid:82)(cid:67)(cid:69)(cid:0)(cid:41)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:52)(cid:82)(cid:85)(cid:83)(cid:84)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:50)(cid:18)(cid:16)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:76)(cid:79)(cid:83)(cid:83)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:83)(cid:65)(cid:76)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:24)(cid:14)(cid:17)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83)(cid:0)(cid:73)(cid:78)(cid:0)(cid:35)(cid:79)(cid:77)(cid:77)(cid:73)(cid:84)(cid:84)(cid:69)(cid:69)(cid:0)(cid:34)(cid:65)(cid:89)(cid:0)(cid:50)(cid:69)(cid:83)(cid:79)(cid:85)(cid:82)(cid:67)(cid:69)(cid:83)(cid:0)(cid:44)(cid:73)(cid:77)(cid:73)(cid:84)(cid:69)(cid:68)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0)(cid:0)(cid:50)(cid:20)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:76)(cid:79)(cid:83)(cid:83)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:83)(cid:65)(cid:76)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:16)(cid:14)(cid:21)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83)(cid:0)(cid:73)(cid:78)(cid:0)(cid:44)(cid:65)(cid:75)(cid:79)(cid:84)(cid:65)(cid:0)(cid:50)(cid:69)(cid:83)(cid:79)(cid:85)(cid:82)(cid:67)(cid:69)(cid:83)(cid:0)(cid:41)(cid:78)(cid:67)(cid:14)
Profit on disposal of property, plant and equipment
Profit on disposal of property, plant and equipment decreased from R34 million in F2008 to R4 million in F2009.
The major disposals comprising the R4 million profit in F2009 related to the sale of surplus housing by Driefontein, Kloof and Beatrix.
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The major disposals comprising the R34 million profit in F2008 were:
(cid:115)(cid:0)(cid:0)(cid:50)(cid:18)(cid:18)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:80)(cid:82)(cid:79)(cid:70)(cid:73)(cid:84)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:83)(cid:65)(cid:76)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:65)(cid:0)(cid:83)(cid:84)(cid:65)(cid:71)(cid:69)(cid:0)(cid:87)(cid:73)(cid:78)(cid:68)(cid:69)(cid:82)(cid:0)(cid:66)(cid:89)(cid:0)(cid:36)(cid:82)(cid:73)(cid:69)(cid:70)(cid:79)(cid:78)(cid:84)(cid:69)(cid:73)(cid:78)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0)(cid:0)(cid:50)(cid:17)(cid:18)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:80)(cid:82)(cid:79)(cid:70)(cid:73)(cid:84)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:83)(cid:65)(cid:76)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:83)(cid:85)(cid:82)(cid:80)(cid:76)(cid:85)(cid:83)(cid:0)(cid:72)(cid:79)(cid:85)(cid:83)(cid:73)(cid:78)(cid:71)(cid:0)(cid:66)(cid:89)(cid:0)(cid:34)(cid:69)(cid:65)(cid:84)(cid:82)(cid:73)(cid:88)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:51)(cid:79)(cid:85)(cid:84)(cid:72)(cid:0)(cid:36)(cid:69)(cid:69)(cid:80)(cid:14)
MINING AND INCOME TAX
The table below indicates Gold Fields’ effective tax expense rate for F2009 and F2008:
Income and mining tax
Effective tax expense rate
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Year ended 30 June
2009
2008
55.9
29.2
In F2009, the effective tax expense rate of 56 per cent differed from the maximum South African mining statutory tax rate of
43 per cent mainly due to non-deductible impairment charges of R520 million on the impairment of associate and certain listed
investments, R339 million increase in charges relating to levies and royalties in Ghana and Australia, R219 million non-deductible
exploration expense as well as R131 million non-deductible share-based payments.
These increases were partly offset by a reduction of R507 million in net tax charge arising from non-South African mining income
taxed at lower rates, R250 million reduction relating to the South African mining tax formula and a R25 million decrease due to use
of assessed losses not previously recognised at GFL Mining Services Limited and Gold Fields Protection Services Limited.
104
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
MANAGEMENT’S DISCUSSION AND ANALYSIS OF THE FINANCIAL
STATEMENTS continued
In F2008, the effective tax expense rate of 29 per cent differed from the maximum South African mining statutory tax rate of 43 per
cent mainly due to a non-taxable gain on the disposal of the Essakane project and other investments of R609 million, a reduction of
R424 million in net tax charge arising from non-South African mining income taxed at lower rates, R222 million reduction relating to
the South African mining tax formula, R31 million decrease due to use of assessed losses not previously recognised at Gold Fields
Limited and GFL Mining Services Limited and other non-taxable income of R110 million mainly due to the Venezuelan subsidiary
not being subject to tax.
These reductions were partly offset by the Group incurring R243 million in charges relating to levies and royalties in Ghana and
Australia, R141 million of non-deductible exploration expenses and R65 million of non-deductible share-based payments.
Discontinued operations
During the December quarter in F2008 the assets in Venezuela were sold. This sale has necessitated the restatement of prior
periods salient features and financial results as required by IFRS 5.
In F2008 the net gain from the sale of the Venezuelan assets amounted to R111 million comprising a profit on the disposal of the
Venezuelan assets of R74 million and an income on the operational results at Choco 10 for the five months ended November 2007,
the effective date of sale, of R37 million.
There were no discontinued operations in F2009.
Profit attributable to ordinary shareholders of the company
Because of the factors discussed above, Gold Fields posted earnings attributable to ordinary shareholders of the company of
R1,536 million in F2009 as compared with earnings of R4,458 million in F2008.
Profit attributable to minority shareholders’ interest
Minority interests represent attributable earnings of R319 million in F2009, compared with attributable earnings of R360 million in
F2008. These amounts reflect the portion of the net income or losses of Gold Fields Ghana, Abosso Goldfields, Gold Fields La
Cima and Living Gold attributable to its minority shareholders.
LIQUIDITY AND CAPITAL RESOURCES
Cash resources
Cash flows from operating activities
Cash inflows from operating activities decreased from R6,692 million in F2008 to R6,001 million in F2009. The decrease of R691
million was mainly due to:
(cid:115)(cid:0)(cid:0)(cid:0)(cid:33)(cid:0)(cid:77)(cid:79)(cid:86)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:17)(cid:12)(cid:20)(cid:20)(cid:22)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:0)(cid:87)(cid:79)(cid:82)(cid:75)(cid:73)(cid:78)(cid:71)(cid:0)(cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76)(cid:0)(cid:82)(cid:69)(cid:83)(cid:85)(cid:76)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:65)(cid:78)(cid:0)(cid:73)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:17)(cid:12)(cid:17)(cid:24)(cid:20)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:0)(cid:38)(cid:18)(cid:16)(cid:16)(cid:25)(cid:0)(cid:86)(cid:69)(cid:82)(cid:83)(cid:85)(cid:83)(cid:0)(cid:65)(cid:0)(cid:82)(cid:69)(cid:76)(cid:69)(cid:65)(cid:83)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:18)(cid:22)(cid:18)(cid:0)
million in F2008 which is mainly due to an increase in trade receivables for gold sales in F2009;
(cid:115)(cid:0)(cid:0)(cid:41)(cid:78)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:69)(cid:0)(cid:73)(cid:78)(cid:0)(cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84)(cid:0)(cid:80)(cid:65)(cid:73)(cid:68)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:18)(cid:20)(cid:23)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:68)(cid:85)(cid:69)(cid:0)(cid:84)(cid:79)(cid:0)(cid:72)(cid:73)(cid:71)(cid:72)(cid:69)(cid:82)(cid:0)(cid:66)(cid:79)(cid:82)(cid:82)(cid:79)(cid:87)(cid:73)(cid:78)(cid:71)(cid:83)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:41)(cid:78)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:69)(cid:0)(cid:73)(cid:78)(cid:0)(cid:84)(cid:65)(cid:88)(cid:0)(cid:80)(cid:65)(cid:73)(cid:68)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:24)(cid:24)(cid:25)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:68)(cid:85)(cid:69)(cid:0)(cid:84)(cid:79)(cid:0)(cid:72)(cid:73)(cid:71)(cid:72)(cid:69)(cid:82)(cid:0)(cid:84)(cid:65)(cid:88)(cid:65)(cid:66)(cid:76)(cid:69)(cid:0)(cid:69)(cid:65)(cid:82)(cid:78)(cid:73)(cid:78)(cid:71)(cid:83)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:0)(cid:48)(cid:65)(cid:82)(cid:84)(cid:73)(cid:65)(cid:76)(cid:76)(cid:89)(cid:0)(cid:79)(cid:70)(cid:70)(cid:83)(cid:69)(cid:84)(cid:0)(cid:66)(cid:89)(cid:0)(cid:65)(cid:78)(cid:0)(cid:73)(cid:78)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:69)(cid:0)(cid:73)(cid:78)(cid:0)(cid:67)(cid:65)(cid:83)(cid:72)(cid:0)(cid:71)(cid:69)(cid:78)(cid:69)(cid:82)(cid:65)(cid:84)(cid:69)(cid:68)(cid:0)(cid:66)(cid:89)(cid:0)(cid:79)(cid:80)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:17)(cid:12)(cid:25)(cid:23)(cid:21)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:68)(cid:85)(cid:69)(cid:0)(cid:84)(cid:79)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:71)(cid:79)(cid:76)(cid:68)(cid:0)(cid:80)(cid:82)(cid:73)(cid:67)(cid:69)(cid:0)(cid:73)(cid:78)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:73)(cid:78)(cid:71)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:50)(cid:17)(cid:25)(cid:16)(cid:12)(cid:22)(cid:18)(cid:19)(cid:0)(cid:80)(cid:69)(cid:82)(cid:0)
kilogram in F2008 to R253,459 per kilogram in F2009; and
(cid:115)(cid:0)(cid:0)(cid:33)(cid:0)(cid:68)(cid:69)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:69)(cid:0)(cid:73)(cid:78)(cid:0)(cid:68)(cid:73)(cid:86)(cid:73)(cid:68)(cid:69)(cid:78)(cid:68)(cid:83)(cid:0)(cid:80)(cid:65)(cid:73)(cid:68)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:22)(cid:20)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:14)
Cash from discontinued operations relates entirely to the Venezuelan operations and amounted to R126 million in F2008. The R126
million in F2008 comprises R111 million of profit before tax and a depreciation charge of R15 million.
Cash flows from investing activities
Cash outflows from investing activities decreased from R7,727 million in F2008 to R7,284 million in F2009. The items comprising
these numbers are discussed below.
Additions to property, plant and equipment
Capital expenditure decreased from R9,014 million in F2008 to R7,649 million in F2009.
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
105
Capital expenditure at the South African operations increased from R3,275 million in F2008 to R3,643 million in F2009. The increase
in capital expenditure of R368 million was due to:
(cid:115)(cid:0)(cid:0)(cid:0)(cid:36)(cid:82)(cid:73)(cid:69)(cid:70)(cid:79)(cid:78)(cid:84)(cid:69)(cid:73)(cid:78)(cid:0)(cid:73)(cid:78)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:73)(cid:78)(cid:71)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:50)(cid:17)(cid:12)(cid:16)(cid:17)(cid:22)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:0)(cid:38)(cid:18)(cid:16)(cid:16)(cid:24)(cid:0)(cid:84)(cid:79)(cid:0)(cid:50)(cid:17)(cid:12)(cid:16)(cid:19)(cid:20)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:0)(cid:38)(cid:18)(cid:16)(cid:16)(cid:25)(cid:14)(cid:0)(cid:52)(cid:72)(cid:73)(cid:83)(cid:0)(cid:87)(cid:65)(cid:83)(cid:0)(cid:77)(cid:65)(cid:73)(cid:78)(cid:76)(cid:89)(cid:0)(cid:68)(cid:85)(cid:69)(cid:0)(cid:84)(cid:79)(cid:0)(cid:73)(cid:78)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:69)(cid:68)(cid:0)(cid:69)(cid:88)(cid:80)(cid:69)(cid:78)(cid:68)(cid:73)(cid:84)(cid:85)(cid:82)(cid:69)(cid:0)(cid:79)(cid:78)(cid:0)
ORD, high and low density accommodation, partly offset by decreased expenditure on the mothballed 9 shaft project;
(cid:115)(cid:0)(cid:0)(cid:0)(cid:43)(cid:76)(cid:79)(cid:79)(cid:70)(cid:0)(cid:73)(cid:78)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:73)(cid:78)(cid:71)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:50)(cid:24)(cid:25)(cid:24)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:0)(cid:38)(cid:18)(cid:16)(cid:16)(cid:24)(cid:0)(cid:84)(cid:79)(cid:0)(cid:50)(cid:25)(cid:21)(cid:25)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:0)(cid:38)(cid:18)(cid:16)(cid:16)(cid:25)(cid:14)(cid:0)(cid:52)(cid:72)(cid:73)(cid:83)(cid:0)(cid:87)(cid:65)(cid:83)(cid:0)(cid:68)(cid:85)(cid:69)(cid:0)(cid:84)(cid:79)(cid:0)(cid:69)(cid:88)(cid:80)(cid:69)(cid:78)(cid:68)(cid:73)(cid:84)(cid:85)(cid:82)(cid:69)(cid:0)(cid:79)(cid:78)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:45)(cid:65)(cid:73)(cid:78)(cid:0)(cid:83)(cid:72)(cid:65)(cid:70)(cid:84)(cid:0)(cid:82)(cid:69)(cid:72)(cid:65)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)
programme and increased ORD, partly offset by cessation of expenditure on the Kloof Extension Area project;
(cid:115)(cid:0)(cid:0)(cid:0)(cid:51)(cid:79)(cid:85)(cid:84)(cid:72)(cid:0) (cid:36)(cid:69)(cid:69)(cid:80)(cid:0) (cid:73)(cid:78)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:73)(cid:78)(cid:71)(cid:0) (cid:70)(cid:82)(cid:79)(cid:77)(cid:0) (cid:50)(cid:23)(cid:24)(cid:21)(cid:0) (cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0) (cid:73)(cid:78)(cid:0) (cid:38)(cid:18)(cid:16)(cid:16)(cid:24)(cid:0) (cid:84)(cid:79)(cid:0) (cid:50)(cid:17)(cid:12)(cid:16)(cid:18)(cid:17)(cid:0) (cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0) (cid:73)(cid:78)(cid:0) (cid:38)(cid:18)(cid:16)(cid:16)(cid:25)(cid:14)(cid:0) (cid:52)(cid:72)(cid:73)(cid:83)(cid:0) (cid:73)(cid:78)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:69)(cid:0) (cid:87)(cid:65)(cid:83)(cid:0) (cid:68)(cid:85)(cid:69)(cid:0) (cid:84)(cid:79)(cid:0) (cid:69)(cid:88)(cid:80)(cid:69)(cid:78)(cid:68)(cid:73)(cid:84)(cid:85)(cid:82)(cid:69)(cid:0) (cid:79)(cid:78)(cid:0)
development and mechanised equipment as per the project plan build-up; and
(cid:115)(cid:0)(cid:0)(cid:0)(cid:34)(cid:69)(cid:65)(cid:84)(cid:82)(cid:73)(cid:88)(cid:0) (cid:73)(cid:78)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:73)(cid:78)(cid:71)(cid:0) (cid:70)(cid:82)(cid:79)(cid:77)(cid:0) (cid:50)(cid:21)(cid:23)(cid:22)(cid:0) (cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0) (cid:73)(cid:78)(cid:0) (cid:38)(cid:18)(cid:16)(cid:16)(cid:24)(cid:0) (cid:84)(cid:79)(cid:0) (cid:50)(cid:22)(cid:18)(cid:25)(cid:0) (cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0) (cid:73)(cid:78)(cid:0) (cid:38)(cid:18)(cid:16)(cid:16)(cid:25)(cid:14)(cid:0) (cid:52)(cid:72)(cid:73)(cid:83)(cid:0) (cid:87)(cid:65)(cid:83)(cid:0) (cid:77)(cid:65)(cid:73)(cid:78)(cid:76)(cid:89)(cid:0) (cid:68)(cid:85)(cid:69)(cid:0) (cid:84)(cid:79)(cid:0) (cid:73)(cid:78)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:69)(cid:68)(cid:0) (cid:47)(cid:50)(cid:36)(cid:0) (cid:65)(cid:78)(cid:68)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0)
procurement of additional mechanised equipment.
In F2008, R400 million was paid for the Uncle Harry’s mineral rights adjacent to the South Deep mine.
Capital expenditure at the offshore operations decreased from R5,310 million in F2008 to R3,914 million in F2009 and from US$730
million to US$434 million in US dollar terms.
(cid:115)(cid:0)(cid:0)(cid:0)(cid:52)(cid:65)(cid:82)(cid:75)(cid:87)(cid:65)(cid:0)(cid:68)(cid:69)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:69)(cid:68)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:53)(cid:51)(cid:4)(cid:18)(cid:17)(cid:18)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:0)(cid:38)(cid:18)(cid:16)(cid:16)(cid:24)(cid:0)(cid:84)(cid:79)(cid:0)(cid:53)(cid:51)(cid:4)(cid:18)(cid:16)(cid:17)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:0)(cid:38)(cid:18)(cid:16)(cid:16)(cid:25)(cid:14)(cid:0)(cid:52)(cid:72)(cid:73)(cid:83)(cid:0)(cid:87)(cid:65)(cid:83)(cid:0)(cid:77)(cid:65)(cid:73)(cid:78)(cid:76)(cid:89)(cid:0)(cid:68)(cid:85)(cid:69)(cid:0)(cid:84)(cid:79)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:68)(cid:69)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:69)(cid:0)(cid:73)(cid:78)(cid:0)(cid:65)(cid:67)(cid:84)(cid:73)(cid:86)(cid:73)(cid:84)(cid:89)(cid:0)(cid:65)(cid:83)(cid:0)
the CIL expansion project was completed;
(cid:115)(cid:0)(cid:0)(cid:0)(cid:36)(cid:65)(cid:77)(cid:65)(cid:78)(cid:71)(cid:0)(cid:68)(cid:69)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:69)(cid:68)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:53)(cid:51)(cid:4)(cid:18)(cid:24)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:0)(cid:38)(cid:18)(cid:16)(cid:16)(cid:24)(cid:0)(cid:84)(cid:79)(cid:0)(cid:53)(cid:51)(cid:4)(cid:17)(cid:23)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:0)(cid:38)(cid:18)(cid:16)(cid:16)(cid:25)(cid:14)(cid:0)(cid:52)(cid:72)(cid:73)(cid:83)(cid:0)(cid:87)(cid:65)(cid:83)(cid:0)(cid:68)(cid:85)(cid:69)(cid:0)(cid:84)(cid:79)(cid:0)(cid:65)(cid:0)(cid:82)(cid:69)(cid:68)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:69)(cid:88)(cid:80)(cid:69)(cid:78)(cid:68)(cid:73)(cid:84)(cid:85)(cid:82)(cid:69)(cid:0)(cid:79)(cid:78)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)
Damang pit cutback;
(cid:115)(cid:0)(cid:0)(cid:0)(cid:51)(cid:84)(cid:0)(cid:41)(cid:86)(cid:69)(cid:83)(cid:0)(cid:68)(cid:69)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:69)(cid:68)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:53)(cid:51)(cid:4)(cid:17)(cid:16)(cid:24)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:0)(cid:38)(cid:18)(cid:16)(cid:16)(cid:24)(cid:0)(cid:84)(cid:79)(cid:0)(cid:53)(cid:51)(cid:4)(cid:22)(cid:25)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:0)(cid:38)(cid:18)(cid:16)(cid:16)(cid:25)(cid:14)(cid:0)(cid:52)(cid:72)(cid:73)(cid:83)(cid:0)(cid:87)(cid:65)(cid:83)(cid:0)(cid:68)(cid:85)(cid:69)(cid:0)(cid:84)(cid:79)(cid:0)(cid:67)(cid:79)(cid:77)(cid:80)(cid:76)(cid:69)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:35)(cid:65)(cid:86)(cid:69)(cid:0)(cid:50)(cid:79)(cid:67)(cid:75)(cid:83)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)
Belleisle projects;
(cid:115)(cid:0)(cid:0)(cid:0)(cid:33)(cid:71)(cid:78)(cid:69)(cid:87)(cid:0)(cid:68)(cid:69)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:69)(cid:68)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:53)(cid:51)(cid:4)(cid:19)(cid:20)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:0)(cid:38)(cid:18)(cid:16)(cid:16)(cid:24)(cid:0)(cid:84)(cid:79)(cid:0)(cid:53)(cid:51)(cid:4)(cid:19)(cid:16)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:0)(cid:38)(cid:18)(cid:16)(cid:16)(cid:25)(cid:14)(cid:0)(cid:52)(cid:72)(cid:73)(cid:83)(cid:0)(cid:84)(cid:82)(cid:65)(cid:78)(cid:83)(cid:76)(cid:65)(cid:84)(cid:69)(cid:83)(cid:0)(cid:84)(cid:79)(cid:0)(cid:65)(cid:78)(cid:0)(cid:73)(cid:78)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:69)(cid:0)(cid:73)(cid:78)(cid:0)(cid:33)(cid:85)(cid:83)(cid:84)(cid:82)(cid:65)(cid:76)(cid:73)(cid:65)(cid:78)(cid:0)(cid:68)(cid:79)(cid:76)(cid:76)(cid:65)(cid:82)(cid:83)(cid:0)
from A$37 million to A$42 million and was due to underground capital development and increased exploration expenditure; and
(cid:115)(cid:0)(cid:0)(cid:0)(cid:52)(cid:72)(cid:69)(cid:0)(cid:35)(cid:69)(cid:82)(cid:82)(cid:79)(cid:0)(cid:35)(cid:79)(cid:82)(cid:79)(cid:78)(cid:65)(cid:0)(cid:80)(cid:82)(cid:79)(cid:74)(cid:69)(cid:67)(cid:84)(cid:0)(cid:73)(cid:78)(cid:0)(cid:48)(cid:69)(cid:82)(cid:85)(cid:0)(cid:68)(cid:69)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:69)(cid:68)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:53)(cid:51)(cid:4)(cid:19)(cid:20)(cid:24)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:0)(cid:38)(cid:18)(cid:16)(cid:16)(cid:24)(cid:0)(cid:84)(cid:79)(cid:0)(cid:53)(cid:51)(cid:4)(cid:17)(cid:17)(cid:23)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:0)(cid:38)(cid:18)(cid:16)(cid:16)(cid:25)(cid:0)(cid:87)(cid:72)(cid:73)(cid:67)(cid:72)(cid:0)(cid:87)(cid:65)(cid:83)(cid:0)(cid:77)(cid:65)(cid:73)(cid:78)(cid:76)(cid:89)(cid:0)(cid:68)(cid:85)(cid:69)(cid:0)(cid:84)(cid:79)(cid:0)
commissioning of the project in the second quarter of F2009.
Proceeds on the disposal of property, plant and equipment
Proceeds on the disposal of property, plant and equipment decreased from R42 million in F2008 to R32 million in F2009. In both
years this related to the disposal of various mining assets by the South African mining operations.
Proceeds on disposal of subsidiary
Proceeds on disposal of subsidiaries decreased from R1,042 million in F2008 to R45 million in F2009. The amount received in
F2009 comprises the cash proceeds received from the sale of a 70 per cent holding in the IRCA (Pty) Limited Group. The amount
of R1,042 million comprises entirely the cash proceeds received from the sale of the Essakane project in Burkina Faso. The gross
proceeds of the sale amounted to R1,375 million comprising the abovementioned cash of R1,042 million and 41,666,667 shares in
Orezone Resources Limited.
Net cash from discontinued operations
Cash inflows from investing activities from discontinued operations amounted to R1,165 million in F2008 and nil in F2009. The
gross proceeds from the sale of the Venezuelan assets amounted to R2,799 million (US$413 million) and comprised cash of R1,219
million (US$180 million) and shares in Rusoro Mining Limited of R1,580 million (US$233 million). The cash received has been partly
offset by capital expenditure for the period to 30 November 2007 of R54 million. This sale has necessitated the restatement of prior
periods’ salient features and financial results as required by IFRS 5 Non-current assets held for sale and discontinued operations.
Purchase of investments
Investment purchases decreased from R978 million in F2008 to R99 million in F2009.
The major net investment purchases comprising the R99 million spent in F2009 were:
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106
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
MANAGEMENT’S DISCUSSION AND ANALYSIS OF THE FINANCIAL
STATEMENTS continued
(cid:115)(cid:0)(cid:0)(cid:50)(cid:25)(cid:21)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:69)(cid:68)(cid:0)(cid:73)(cid:78)(cid:0)(cid:51)(cid:73)(cid:78)(cid:79)(cid:0)(cid:39)(cid:79)(cid:76)(cid:68)(cid:0)(cid:44)(cid:73)(cid:77)(cid:73)(cid:84)(cid:69)(cid:68)(cid:0)(cid:65)(cid:83)(cid:0)(cid:80)(cid:65)(cid:82)(cid:84)(cid:0)(cid:79)(cid:70)(cid:0)(cid:65)(cid:0)(cid:82)(cid:73)(cid:71)(cid:72)(cid:84)(cid:83)(cid:0)(cid:79)(cid:70)(cid:70)(cid:69)(cid:82)(cid:0)(cid:77)(cid:65)(cid:73)(cid:78)(cid:84)(cid:65)(cid:73)(cid:78)(cid:73)(cid:78)(cid:71)(cid:0)(cid:79)(cid:85)(cid:82)(cid:0)(cid:72)(cid:79)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:0)(cid:65)(cid:84)(cid:0)(cid:17)(cid:25)(cid:14)(cid:25)(cid:0)(cid:80)(cid:69)(cid:82)(cid:0)(cid:67)(cid:69)(cid:78)(cid:84)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:50)(cid:17)(cid:23)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:69)(cid:68)(cid:0)(cid:73)(cid:78)(cid:0)(cid:39)(cid:76)(cid:69)(cid:78)(cid:67)(cid:65)(cid:82)(cid:0)(cid:45)(cid:73)(cid:78)(cid:73)(cid:78)(cid:71)(cid:0)(cid:48)(cid:76)(cid:67)(cid:0)(cid:82)(cid:69)(cid:83)(cid:85)(cid:76)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0)(cid:73)(cid:78)(cid:0)(cid:65)(cid:0)(cid:72)(cid:79)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:0)(cid:79)(cid:70)(cid:0)(cid:25)(cid:14)(cid:17)(cid:0)(cid:80)(cid:69)(cid:82)(cid:0)(cid:67)(cid:69)(cid:78)(cid:84)(cid:0)(cid:65)(cid:84)(cid:0)(cid:19)(cid:16)(cid:0)(cid:42)(cid:85)(cid:78)(cid:69)(cid:0)(cid:18)(cid:16)(cid:16)(cid:25)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:50)(cid:18)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:69)(cid:68)(cid:0)(cid:73)(cid:78)(cid:0)(cid:35)(cid:76)(cid:65)(cid:78)(cid:67)(cid:89)(cid:0)(cid:37)(cid:88)(cid:80)(cid:76)(cid:79)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:44)(cid:73)(cid:77)(cid:73)(cid:84)(cid:69)(cid:68)(cid:0)(cid:82)(cid:69)(cid:83)(cid:85)(cid:76)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0)(cid:73)(cid:78)(cid:0)(cid:65)(cid:0)(cid:72)(cid:79)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:0)(cid:79)(cid:70)(cid:0)(cid:21)(cid:14)(cid:20)(cid:0)(cid:80)(cid:69)(cid:82)(cid:0)(cid:67)(cid:69)(cid:78)(cid:84)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:50)(cid:16)(cid:14)(cid:21)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:69)(cid:68)(cid:0)(cid:73)(cid:78)(cid:0)(cid:35)(cid:65)(cid:83)(cid:67)(cid:65)(cid:68)(cid:69)(cid:82)(cid:79)(cid:0)(cid:35)(cid:79)(cid:80)(cid:80)(cid:69)(cid:82)(cid:0)(cid:35)(cid:79)(cid:82)(cid:80)(cid:79)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:82)(cid:69)(cid:83)(cid:85)(cid:76)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0)(cid:73)(cid:78)(cid:0)(cid:65)(cid:0)(cid:72)(cid:79)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:0)(cid:79)(cid:70)(cid:0)(cid:16)(cid:14)(cid:21)(cid:0)(cid:80)(cid:69)(cid:82)(cid:0)(cid:67)(cid:69)(cid:78)(cid:84)(cid:14)
The major net investment purchases comprising the R978 million spent in F2008 were:
(cid:115)(cid:0)(cid:0)(cid:50)(cid:23)(cid:25)(cid:21)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:69)(cid:68)(cid:0)(cid:73)(cid:78)(cid:0)(cid:51)(cid:73)(cid:78)(cid:79)(cid:0)(cid:39)(cid:79)(cid:76)(cid:68)(cid:0)(cid:44)(cid:73)(cid:77)(cid:73)(cid:84)(cid:69)(cid:68)(cid:0)(cid:66)(cid:82)(cid:73)(cid:78)(cid:71)(cid:73)(cid:78)(cid:71)(cid:0)(cid:79)(cid:85)(cid:82)(cid:0)(cid:72)(cid:79)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:0)(cid:84)(cid:79)(cid:0)(cid:17)(cid:25)(cid:14)(cid:25)(cid:0)(cid:80)(cid:69)(cid:82)(cid:0)(cid:67)(cid:69)(cid:78)(cid:84)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:50)(cid:24)(cid:21)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:78)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:67)(cid:79)(cid:78)(cid:86)(cid:69)(cid:82)(cid:83)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:79)(cid:80)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:0)(cid:72)(cid:69)(cid:76)(cid:68)(cid:0)(cid:73)(cid:78)(cid:0)(cid:45)(cid:86)(cid:69)(cid:76)(cid:65)(cid:80)(cid:72)(cid:65)(cid:78)(cid:68)(cid:65)(cid:0)(cid:50)(cid:69)(cid:83)(cid:79)(cid:85)(cid:82)(cid:67)(cid:69)(cid:83)(cid:0)(cid:44)(cid:73)(cid:77)(cid:73)(cid:84)(cid:69)(cid:68)(cid:0)(cid:84)(cid:79)(cid:0)(cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:50)(cid:22)(cid:23)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:69)(cid:68)(cid:0)(cid:73)(cid:78)(cid:0)(cid:35)(cid:79)(cid:78)(cid:81)(cid:85)(cid:69)(cid:83)(cid:84)(cid:0)(cid:45)(cid:73)(cid:78)(cid:73)(cid:78)(cid:71)(cid:0)(cid:44)(cid:73)(cid:77)(cid:73)(cid:84)(cid:69)(cid:68)(cid:0)(cid:66)(cid:82)(cid:73)(cid:78)(cid:71)(cid:73)(cid:78)(cid:71)(cid:0)(cid:79)(cid:85)(cid:82)(cid:0)(cid:72)(cid:79)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:0)(cid:84)(cid:79)(cid:0)(cid:17)(cid:25)(cid:14)(cid:17)(cid:0)(cid:80)(cid:69)(cid:82)(cid:0)(cid:67)(cid:69)(cid:78)(cid:84)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:50)(cid:19)(cid:24)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:69)(cid:68)(cid:0)(cid:73)(cid:78)(cid:0)(cid:47)(cid:82)(cid:83)(cid:85)(cid:0)(cid:45)(cid:69)(cid:84)(cid:65)(cid:76)(cid:83)(cid:0)(cid:35)(cid:79)(cid:82)(cid:80)(cid:79)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:8)(cid:80)(cid:82)(cid:69)(cid:86)(cid:73)(cid:79)(cid:85)(cid:83)(cid:76)(cid:89)(cid:0)(cid:44)(cid:69)(cid:82)(cid:79)(cid:0)(cid:39)(cid:79)(cid:76)(cid:68)(cid:0)(cid:35)(cid:79)(cid:82)(cid:80)(cid:79)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:9)(cid:0)(cid:66)(cid:82)(cid:73)(cid:78)(cid:71)(cid:73)(cid:78)(cid:71)(cid:0)(cid:79)(cid:85)(cid:82)(cid:0)(cid:72)(cid:79)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:0)(cid:84)(cid:79)(cid:0)(cid:23)(cid:14)(cid:22)(cid:0)(cid:80)(cid:69)(cid:82)(cid:0)(cid:67)(cid:69)(cid:78)(cid:84)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0)(cid:0)(cid:0)(cid:50)(cid:21)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:69)(cid:68)(cid:0)(cid:73)(cid:78)(cid:0)(cid:37)(cid:77)(cid:69)(cid:68)(cid:0)(cid:45)(cid:73)(cid:78)(cid:73)(cid:78)(cid:71)(cid:0)(cid:48)(cid:85)(cid:66)(cid:76)(cid:73)(cid:67)(cid:0)(cid:44)(cid:73)(cid:77)(cid:73)(cid:84)(cid:69)(cid:68)(cid:0)(cid:87)(cid:72)(cid:73)(cid:67)(cid:72)(cid:0)(cid:87)(cid:65)(cid:83)(cid:0)(cid:83)(cid:85)(cid:66)(cid:83)(cid:69)(cid:81)(cid:85)(cid:69)(cid:78)(cid:84)(cid:76)(cid:89)(cid:0)(cid:68)(cid:73)(cid:83)(cid:80)(cid:79)(cid:83)(cid:69)(cid:68)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:79)(cid:71)(cid:69)(cid:84)(cid:72)(cid:69)(cid:82)(cid:0)(cid:87)(cid:73)(cid:84)(cid:72)(cid:0)(cid:65)(cid:76)(cid:76)(cid:0)(cid:69)(cid:88)(cid:73)(cid:83)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0)(cid:72)(cid:79)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:83)(cid:0)(cid:73)(cid:78)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)
same, reducing our current holding to nil per cent.
Proceeds on the disposal of investments
Proceeds on the disposal of investments increased from R100 million in F2008 to R482 million in F2009.
The major investment disposals comprising the R482 million in F2009 were:
(cid:115)(cid:0)(cid:0)(cid:50)(cid:18)(cid:24)(cid:18)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:83)(cid:65)(cid:76)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:41)(cid:33)(cid:45)(cid:39)(cid:79)(cid:76)(cid:68)(cid:0)(cid:35)(cid:79)(cid:82)(cid:80)(cid:79)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0)(cid:0)(cid:50)(cid:18)(cid:16)(cid:16)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:82)(cid:69)(cid:68)(cid:69)(cid:77)(cid:80)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:80)(cid:82)(cid:69)(cid:70)(cid:69)(cid:82)(cid:69)(cid:78)(cid:67)(cid:69)(cid:0)(cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83)(cid:0)(cid:72)(cid:69)(cid:76)(cid:68)(cid:0)(cid:73)(cid:78)(cid:0)(cid:65)(cid:0)(cid:87)(cid:72)(cid:79)(cid:76)(cid:76)(cid:89)(cid:0)(cid:79)(cid:87)(cid:78)(cid:69)(cid:68)(cid:0)(cid:83)(cid:85)(cid:66)(cid:83)(cid:73)(cid:68)(cid:73)(cid:65)(cid:82)(cid:89)(cid:0)(cid:79)(cid:70)(cid:0)(cid:45)(cid:86)(cid:69)(cid:76)(cid:65)(cid:0)(cid:50)(cid:69)(cid:83)(cid:79)(cid:85)(cid:82)(cid:67)(cid:69)(cid:83)(cid:0)(cid:44)(cid:73)(cid:77)(cid:73)(cid:84)(cid:69)(cid:68)(cid:14)
The major investment disposals comprising the R100 million in F2008 were:
(cid:115)(cid:0)(cid:0)(cid:50)(cid:20)(cid:17)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:83)(cid:65)(cid:76)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:37)(cid:77)(cid:69)(cid:68)(cid:0)(cid:45)(cid:73)(cid:78)(cid:73)(cid:78)(cid:71)(cid:0)(cid:48)(cid:85)(cid:66)(cid:76)(cid:73)(cid:67)(cid:0)(cid:44)(cid:73)(cid:77)(cid:73)(cid:84)(cid:69)(cid:68)(cid:0)(cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:50)(cid:19)(cid:24)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:83)(cid:65)(cid:76)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:86)(cid:65)(cid:82)(cid:73)(cid:79)(cid:85)(cid:83)(cid:0)(cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83)(cid:0)(cid:72)(cid:69)(cid:76)(cid:68)(cid:0)(cid:66)(cid:89)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:46)(cid:69)(cid:87)(cid:0)(cid:33)(cid:70)(cid:82)(cid:73)(cid:67)(cid:65)(cid:0)(cid:45)(cid:73)(cid:78)(cid:73)(cid:78)(cid:71)(cid:0)(cid:38)(cid:85)(cid:78)(cid:68)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:50)(cid:17)(cid:18)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:83)(cid:65)(cid:76)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:35)(cid:79)(cid:77)(cid:77)(cid:73)(cid:84)(cid:84)(cid:69)(cid:69)(cid:0)(cid:34)(cid:65)(cid:89)(cid:0)(cid:50)(cid:69)(cid:83)(cid:79)(cid:85)(cid:82)(cid:67)(cid:69)(cid:83)(cid:0)(cid:44)(cid:73)(cid:77)(cid:73)(cid:84)(cid:69)(cid:68)(cid:0)(cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0)(cid:0)(cid:50)(cid:23)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:83)(cid:65)(cid:76)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:37)(cid:78)(cid:67)(cid:79)(cid:82)(cid:69)(cid:0)(cid:47)(cid:73)(cid:76)(cid:0)(cid:44)(cid:73)(cid:77)(cid:73)(cid:84)(cid:69)(cid:68)(cid:0)(cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83)(cid:14)
Environmental trust funds and rehabilitation payments
During F2009 Gold Fields paid over R58 million to its environmental trust funds and spent R36 million on ongoing rehabilitation
costs resulting in a total cash outflow of R94 million for the year.
During F2008 Gold Fields paid over R56 million to its environmental trust funds and spent R29 million on ongoing rehabilitation
costs resulting in a total cash outflow of R84 million for the year.
Cash flows from financing activities
Net cash generated by financing activities increased from R557 million in F2008 to R2,087 million in F2009. The items comprising
these numbers are discussed below.
Minority shareholders’ loans received
Minority shareholders’ loans received was nil for F2008 as compared to R10 million in F2009. The R10 million received in F2009
relates to an advance and a repayment between Tarkwa and its minority shareholder, IAMGold of US$6 million. The R10 million
relates to different exchange rates used to convert the advance and repayment to South African rand.
Loans raised
Loans raised increased from R4,336 million in F2008 to R11,704 million in F2009. The R11,704 million received in F2009 comprises:
(cid:115)(cid:0)(cid:0)(cid:0)(cid:50)(cid:20)(cid:12)(cid:17)(cid:19)(cid:25)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:87)(cid:65)(cid:83)(cid:0)(cid:68)(cid:82)(cid:65)(cid:87)(cid:78)(cid:0)(cid:68)(cid:79)(cid:87)(cid:78)(cid:0)(cid:79)(cid:78)(cid:0)(cid:65)(cid:0)(cid:67)(cid:82)(cid:69)(cid:68)(cid:73)(cid:84)(cid:0)(cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0)(cid:73)(cid:78)(cid:0)(cid:79)(cid:82)(cid:68)(cid:69)(cid:82)(cid:0)(cid:84)(cid:79)(cid:0)(cid:82)(cid:69)(cid:80)(cid:65)(cid:89)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:45)(cid:86)(cid:69)(cid:76)(cid:65)(cid:0)(cid:76)(cid:79)(cid:65)(cid:78)(cid:14)(cid:0)(cid:45)(cid:86)(cid:69)(cid:76)(cid:65)(cid:0)(cid:84)(cid:72)(cid:69)(cid:78)(cid:0)(cid:85)(cid:83)(cid:69)(cid:68)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:80)(cid:82)(cid:79)(cid:67)(cid:69)(cid:69)(cid:68)(cid:83)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:76)(cid:79)(cid:65)(cid:78)(cid:0)
repayment to subscribe for its 15 per cent interest in GFIMSA by paying the R4,139 million to GFIMSA. Immediately upon receipt
of the GFIMSA shares, Mvela exercised its right to use the GFIMSA shares to subscribe for 50 million new ordinary shares in
Gold Fields;
(cid:115)(cid:0)(cid:0)(cid:0)(cid:50)(cid:19)(cid:12)(cid:25)(cid:16)(cid:16)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:87)(cid:65)(cid:83)(cid:0)(cid:66)(cid:79)(cid:82)(cid:82)(cid:79)(cid:87)(cid:69)(cid:68)(cid:0)(cid:66)(cid:89)(cid:0)(cid:39)(cid:38)(cid:41)(cid:45)(cid:51)(cid:33)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:86)(cid:65)(cid:82)(cid:73)(cid:79)(cid:85)(cid:83)(cid:0)(cid:76)(cid:79)(cid:67)(cid:65)(cid:76)(cid:0)(cid:66)(cid:65)(cid:78)(cid:75)(cid:83)(cid:0)(cid:84)(cid:79)(cid:0)(cid:70)(cid:85)(cid:78)(cid:68)(cid:0)(cid:83)(cid:72)(cid:79)(cid:82)(cid:84)(cid:13)(cid:84)(cid:69)(cid:82)(cid:77)(cid:0)(cid:87)(cid:79)(cid:82)(cid:75)(cid:73)(cid:78)(cid:71)(cid:0)(cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76)(cid:0)(cid:82)(cid:69)(cid:81)(cid:85)(cid:73)(cid:82)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76)(cid:0)
expenditure;
(cid:115)(cid:0)(cid:0)(cid:0)(cid:50)(cid:17)(cid:12)(cid:19)(cid:18)(cid:21)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:8)(cid:53)(cid:51)(cid:4)(cid:17)(cid:19)(cid:24)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:9)(cid:0)(cid:68)(cid:82)(cid:65)(cid:87)(cid:78)(cid:0)(cid:68)(cid:79)(cid:87)(cid:78)(cid:0)(cid:79)(cid:78)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:53)(cid:51)(cid:4)(cid:23)(cid:21)(cid:16)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:83)(cid:89)(cid:78)(cid:68)(cid:73)(cid:67)(cid:65)(cid:84)(cid:69)(cid:68)(cid:0)(cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0)(cid:84)(cid:79)(cid:0)(cid:70)(cid:85)(cid:78)(cid:68)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76)(cid:0)(cid:69)(cid:88)(cid:80)(cid:69)(cid:78)(cid:68)(cid:73)(cid:84)(cid:85)(cid:82)(cid:69)(cid:0)(cid:79)(cid:78)(cid:0)(cid:35)(cid:69)(cid:82)(cid:82)(cid:79)(cid:0)
Corona and the acquisition of additional Sino Gold Limited shares;
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
107
(cid:115)(cid:0)(cid:0)(cid:50)(cid:17)(cid:12)(cid:17)(cid:20)(cid:19)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:87)(cid:65)(cid:83)(cid:0)(cid:68)(cid:82)(cid:65)(cid:87)(cid:78)(cid:0)(cid:68)(cid:79)(cid:87)(cid:78)(cid:0)(cid:85)(cid:78)(cid:68)(cid:69)(cid:82)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:35)(cid:79)(cid:77)(cid:77)(cid:69)(cid:82)(cid:67)(cid:73)(cid:65)(cid:76)(cid:0)(cid:48)(cid:65)(cid:80)(cid:69)(cid:82)(cid:0)(cid:76)(cid:79)(cid:65)(cid:78)(cid:0)(cid:84)(cid:79)(cid:0)(cid:82)(cid:69)(cid:70)(cid:73)(cid:78)(cid:65)(cid:78)(cid:67)(cid:69)(cid:0)(cid:69)(cid:88)(cid:73)(cid:83)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0)(cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:0)(cid:50)(cid:25)(cid:25)(cid:19)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:8)(cid:53)(cid:51)(cid:4)(cid:17)(cid:17)(cid:22)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:9)(cid:0)(cid:87)(cid:65)(cid:83)(cid:0)(cid:82)(cid:65)(cid:73)(cid:83)(cid:69)(cid:68)(cid:0)(cid:85)(cid:78)(cid:68)(cid:69)(cid:82)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:83)(cid:89)(cid:78)(cid:68)(cid:73)(cid:67)(cid:65)(cid:84)(cid:69)(cid:68)(cid:0)(cid:82)(cid:69)(cid:86)(cid:79)(cid:76)(cid:86)(cid:73)(cid:78)(cid:71)(cid:0)(cid:76)(cid:79)(cid:65)(cid:78)(cid:0)(cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0)(cid:70)(cid:79)(cid:82)(cid:0)(cid:80)(cid:85)(cid:82)(cid:80)(cid:79)(cid:83)(cid:69)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:82)(cid:69)(cid:70)(cid:73)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:78)(cid:71)(cid:0)(cid:69)(cid:88)(cid:73)(cid:83)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0)(cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83)(cid:27)(cid:0)
and
(cid:115)(cid:0)(cid:0)(cid:50)(cid:18)(cid:16)(cid:20)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:8)(cid:53)(cid:51)(cid:4)(cid:18)(cid:16)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:9)(cid:0)(cid:87)(cid:65)(cid:83)(cid:0)(cid:68)(cid:82)(cid:65)(cid:87)(cid:78)(cid:0)(cid:68)(cid:79)(cid:87)(cid:78)(cid:0)(cid:85)(cid:78)(cid:68)(cid:69)(cid:82)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:83)(cid:72)(cid:79)(cid:82)(cid:84)(cid:13)(cid:84)(cid:69)(cid:82)(cid:77)(cid:0)(cid:83)(cid:89)(cid:78)(cid:68)(cid:73)(cid:67)(cid:65)(cid:84)(cid:69)(cid:68)(cid:0)(cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0)(cid:84)(cid:79)(cid:0)(cid:70)(cid:85)(cid:78)(cid:68)(cid:0)(cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76)(cid:0)(cid:69)(cid:88)(cid:80)(cid:69)(cid:78)(cid:68)(cid:73)(cid:84)(cid:85)(cid:82)(cid:69)(cid:14)
The R4,336 million received in F2008 comprises:
(cid:115)(cid:0)(cid:0)(cid:0)(cid:50)(cid:17)(cid:12)(cid:23)(cid:17)(cid:25)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:8)(cid:53)(cid:51)(cid:4)(cid:18)(cid:18)(cid:21)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:9)(cid:0)(cid:68)(cid:82)(cid:65)(cid:87)(cid:78)(cid:0)(cid:68)(cid:79)(cid:87)(cid:78)(cid:0)(cid:79)(cid:78)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:53)(cid:51)(cid:4)(cid:23)(cid:21)(cid:16)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:83)(cid:89)(cid:78)(cid:68)(cid:73)(cid:67)(cid:65)(cid:84)(cid:69)(cid:68)(cid:0)(cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0)(cid:84)(cid:79)(cid:0)(cid:70)(cid:85)(cid:78)(cid:68)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76)(cid:0)(cid:69)(cid:88)(cid:80)(cid:69)(cid:78)(cid:68)(cid:73)(cid:84)(cid:85)(cid:82)(cid:69)(cid:0)(cid:79)(cid:78)(cid:0)(cid:35)(cid:69)(cid:82)(cid:82)(cid:79)(cid:0)
Corona and the acquisition of additional Sino Gold Limited shares;
(cid:115)(cid:0)(cid:0)(cid:0)(cid:50)(cid:17)(cid:12)(cid:18)(cid:22)(cid:16)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:8)(cid:53)(cid:51)(cid:4)(cid:17)(cid:23)(cid:19)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:9)(cid:0)(cid:87)(cid:65)(cid:83)(cid:0)(cid:66)(cid:79)(cid:82)(cid:82)(cid:79)(cid:87)(cid:69)(cid:68)(cid:0)(cid:66)(cid:89)(cid:0)(cid:39)(cid:38)(cid:41)(cid:45)(cid:51)(cid:33)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:86)(cid:65)(cid:82)(cid:73)(cid:79)(cid:85)(cid:83)(cid:0)(cid:76)(cid:79)(cid:67)(cid:65)(cid:76)(cid:0)(cid:66)(cid:65)(cid:78)(cid:75)(cid:83)(cid:0)(cid:84)(cid:79)(cid:0)(cid:70)(cid:85)(cid:78)(cid:68)(cid:0)(cid:87)(cid:79)(cid:82)(cid:75)(cid:73)(cid:78)(cid:71)(cid:0)(cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76)(cid:0)(cid:82)(cid:69)(cid:81)(cid:85)(cid:73)(cid:82)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)
capital expenditure;
(cid:115)(cid:0)(cid:0)(cid:50)(cid:17)(cid:12)(cid:18)(cid:16)(cid:16)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:8)(cid:53)(cid:51)(cid:4)(cid:17)(cid:22)(cid:21)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:9)(cid:0)(cid:87)(cid:65)(cid:83)(cid:0)(cid:82)(cid:65)(cid:73)(cid:83)(cid:69)(cid:68)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:80)(cid:82)(cid:69)(cid:70)(cid:69)(cid:82)(cid:69)(cid:78)(cid:67)(cid:69)(cid:0)(cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83)(cid:0)(cid:73)(cid:83)(cid:83)(cid:85)(cid:69)(cid:68)(cid:0)(cid:70)(cid:79)(cid:82)(cid:0)(cid:80)(cid:85)(cid:82)(cid:80)(cid:79)(cid:83)(cid:69)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:82)(cid:69)(cid:70)(cid:73)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:78)(cid:71)(cid:0)(cid:69)(cid:88)(cid:73)(cid:83)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0)(cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0)(cid:0)(cid:50)(cid:17)(cid:21)(cid:23)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:8)(cid:53)(cid:51)(cid:4)(cid:18)(cid:19)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:9)(cid:0)(cid:87)(cid:65)(cid:83)(cid:0)(cid:68)(cid:82)(cid:65)(cid:87)(cid:78)(cid:0)(cid:68)(cid:79)(cid:87)(cid:78)(cid:0)(cid:79)(cid:78)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:35)(cid:69)(cid:82)(cid:82)(cid:79)(cid:0)(cid:35)(cid:79)(cid:82)(cid:79)(cid:78)(cid:65)(cid:0)(cid:80)(cid:82)(cid:79)(cid:74)(cid:69)(cid:67)(cid:84)(cid:0)(cid:70)(cid:73)(cid:78)(cid:65)(cid:78)(cid:67)(cid:69)(cid:0)(cid:76)(cid:79)(cid:65)(cid:78)(cid:14)
Loans repaid
Loans repaid increased from R4,620 million in F2008 to R9,724 million in F2009. The R9,724 million repayment in F2009 comprises:
(cid:115)(cid:0)(cid:0)(cid:50)(cid:20)(cid:12)(cid:17)(cid:19)(cid:25)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:82)(cid:69)(cid:80)(cid:65)(cid:89)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:84)(cid:79)(cid:0)(cid:69)(cid:70)(cid:70)(cid:69)(cid:67)(cid:84)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:45)(cid:86)(cid:69)(cid:76)(cid:65)(cid:0)(cid:84)(cid:82)(cid:65)(cid:78)(cid:83)(cid:65)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:65)(cid:83)(cid:0)(cid:68)(cid:69)(cid:83)(cid:67)(cid:82)(cid:73)(cid:66)(cid:69)(cid:68)(cid:0)(cid:65)(cid:66)(cid:79)(cid:86)(cid:69)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:0)(cid:50)(cid:18)(cid:12)(cid:24)(cid:16)(cid:18)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:82)(cid:69)(cid:80)(cid:65)(cid:89)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:79)(cid:70)(cid:0)(cid:86)(cid:65)(cid:82)(cid:73)(cid:79)(cid:85)(cid:83)(cid:0)(cid:39)(cid:82)(cid:79)(cid:85)(cid:80)(cid:0)(cid:67)(cid:79)(cid:77)(cid:77)(cid:73)(cid:84)(cid:84)(cid:69)(cid:68)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:85)(cid:78)(cid:67)(cid:79)(cid:77)(cid:77)(cid:73)(cid:84)(cid:84)(cid:69)(cid:68)(cid:0)(cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83)(cid:0)(cid:85)(cid:83)(cid:69)(cid:68)(cid:0)(cid:84)(cid:79)(cid:0)(cid:70)(cid:73)(cid:78)(cid:65)(cid:78)(cid:67)(cid:69)(cid:0)(cid:83)(cid:72)(cid:79)(cid:82)(cid:84)(cid:13)(cid:84)(cid:69)(cid:82)(cid:77)(cid:0)(cid:87)(cid:79)(cid:82)(cid:75)(cid:73)(cid:78)(cid:71)(cid:0)(cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)
capital expenditure of the GFIMSA divisions;
(cid:115)(cid:0)(cid:0)(cid:50)(cid:17)(cid:12)(cid:18)(cid:25)(cid:25)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:8)(cid:53)(cid:51)(cid:4)(cid:17)(cid:21)(cid:16)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:9)(cid:0)(cid:82)(cid:69)(cid:80)(cid:65)(cid:89)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:83)(cid:80)(cid:76)(cid:73)(cid:84)(cid:13)(cid:84)(cid:69)(cid:78)(cid:79)(cid:82)(cid:0)(cid:82)(cid:69)(cid:86)(cid:79)(cid:76)(cid:86)(cid:73)(cid:78)(cid:71)(cid:0)(cid:67)(cid:82)(cid:69)(cid:68)(cid:73)(cid:84)(cid:0)(cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0)(cid:84)(cid:65)(cid:75)(cid:69)(cid:78)(cid:0)(cid:79)(cid:85)(cid:84)(cid:0)(cid:73)(cid:78)(cid:0)(cid:38)(cid:18)(cid:16)(cid:16)(cid:23)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:50)(cid:22)(cid:18)(cid:19)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:82)(cid:69)(cid:80)(cid:65)(cid:89)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:80)(cid:82)(cid:69)(cid:70)(cid:69)(cid:82)(cid:69)(cid:78)(cid:67)(cid:69)(cid:0)(cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83)(cid:0)(cid:73)(cid:83)(cid:83)(cid:85)(cid:69)(cid:68)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:50)(cid:20)(cid:24)(cid:20)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:82)(cid:69)(cid:80)(cid:82)(cid:69)(cid:83)(cid:69)(cid:78)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:78)(cid:73)(cid:78)(cid:84)(cid:72)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:84)(cid:69)(cid:78)(cid:84)(cid:72)(cid:0)(cid:82)(cid:69)(cid:80)(cid:65)(cid:89)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83)(cid:0)(cid:84)(cid:79)(cid:0)(cid:45)(cid:86)(cid:69)(cid:76)(cid:65)(cid:80)(cid:72)(cid:65)(cid:78)(cid:68)(cid:65)(cid:0)(cid:50)(cid:69)(cid:83)(cid:79)(cid:85)(cid:82)(cid:67)(cid:69)(cid:83)(cid:0)(cid:73)(cid:78)(cid:0)(cid:84)(cid:69)(cid:82)(cid:77)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:45)(cid:86)(cid:69)(cid:76)(cid:65)(cid:0)(cid:76)(cid:79)(cid:65)(cid:78)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0)(cid:0)(cid:50)(cid:19)(cid:23)(cid:23)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:8)(cid:53)(cid:51)(cid:4)(cid:20)(cid:20)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:9)(cid:0)(cid:82)(cid:69)(cid:80)(cid:65)(cid:89)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:83)(cid:89)(cid:78)(cid:68)(cid:73)(cid:67)(cid:65)(cid:84)(cid:69)(cid:68)(cid:0)(cid:82)(cid:69)(cid:86)(cid:79)(cid:76)(cid:86)(cid:73)(cid:78)(cid:71)(cid:0)(cid:76)(cid:79)(cid:65)(cid:78)(cid:0)(cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0)(cid:84)(cid:65)(cid:75)(cid:69)(cid:78)(cid:0)(cid:79)(cid:85)(cid:84)(cid:0)(cid:73)(cid:78)(cid:0)(cid:38)(cid:18)(cid:16)(cid:16)(cid:25)(cid:14)
The R4,620 million repayment in F2008 comprises:
(cid:115)(cid:0)(cid:0)(cid:0)(cid:50)(cid:19)(cid:12)(cid:16)(cid:16)(cid:18)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:8)(cid:53)(cid:51)(cid:4)(cid:20)(cid:19)(cid:18)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:9)(cid:0)(cid:82)(cid:69)(cid:80)(cid:65)(cid:89)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:83)(cid:80)(cid:76)(cid:73)(cid:84)(cid:13)(cid:84)(cid:69)(cid:78)(cid:79)(cid:82)(cid:0)(cid:82)(cid:69)(cid:86)(cid:79)(cid:76)(cid:86)(cid:73)(cid:78)(cid:71)(cid:0)(cid:67)(cid:82)(cid:69)(cid:68)(cid:73)(cid:84)(cid:0)(cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0)(cid:85)(cid:83)(cid:69)(cid:68)(cid:0)(cid:84)(cid:79)(cid:0)(cid:82)(cid:69)(cid:70)(cid:73)(cid:78)(cid:65)(cid:78)(cid:67)(cid:69)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:42)(cid:48)(cid:0)(cid:45)(cid:79)(cid:82)(cid:71)(cid:65)(cid:78)(cid:0)(cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0)(cid:84)(cid:65)(cid:75)(cid:69)(cid:78)(cid:0)
out in F2007;
(cid:115)(cid:0)(cid:0)(cid:0)(cid:50)(cid:17)(cid:12)(cid:18)(cid:22)(cid:19)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:82)(cid:69)(cid:80)(cid:65)(cid:89)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:79)(cid:70)(cid:0)(cid:86)(cid:65)(cid:82)(cid:73)(cid:79)(cid:85)(cid:83)(cid:0)(cid:39)(cid:82)(cid:79)(cid:85)(cid:80)(cid:0)(cid:67)(cid:79)(cid:77)(cid:77)(cid:73)(cid:84)(cid:84)(cid:69)(cid:68)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:85)(cid:78)(cid:67)(cid:79)(cid:77)(cid:77)(cid:73)(cid:84)(cid:84)(cid:69)(cid:68)(cid:0)(cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83)(cid:0)(cid:85)(cid:83)(cid:69)(cid:68)(cid:0)(cid:84)(cid:79)(cid:0)(cid:70)(cid:73)(cid:78)(cid:65)(cid:78)(cid:67)(cid:69)(cid:0)(cid:87)(cid:79)(cid:82)(cid:75)(cid:73)(cid:78)(cid:71)(cid:0)(cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76)(cid:0)
expenditure of the GFIMSA divisions; and
(cid:115)(cid:0)(cid:0)(cid:50)(cid:19)(cid:21)(cid:21)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:82)(cid:69)(cid:80)(cid:82)(cid:69)(cid:83)(cid:69)(cid:78)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:83)(cid:69)(cid:86)(cid:69)(cid:78)(cid:84)(cid:72)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:69)(cid:73)(cid:71)(cid:72)(cid:84)(cid:72)(cid:0)(cid:82)(cid:69)(cid:80)(cid:65)(cid:89)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83)(cid:0)(cid:84)(cid:79)(cid:0)(cid:45)(cid:86)(cid:69)(cid:76)(cid:65)(cid:80)(cid:72)(cid:65)(cid:78)(cid:68)(cid:65)(cid:0)(cid:50)(cid:69)(cid:83)(cid:79)(cid:85)(cid:82)(cid:67)(cid:69)(cid:83)(cid:0)(cid:73)(cid:78)(cid:0)(cid:84)(cid:69)(cid:82)(cid:77)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:45)(cid:86)(cid:69)(cid:76)(cid:65)(cid:0)(cid:76)(cid:79)(cid:65)(cid:78)(cid:14)
Proceeds from rights issue – Cerro Corona
The entire R768 million (US$96 million) was raised in F2008 as a rights issue to minority shareholders in Cerro Corona. As a result of
Gold Fields converting its loan to equity, the outside shareholders were given the opportunity to participate in a rights issue to avoid a
dilution of their interest. The funds were awaiting finalisation of all statutory requirements before the shares could be issued.
Shares issued
Shares issued increased from R73 million in F2008 to R97 million in F2009.
The R97 million in F2009 includes R25 million received from the issue of 50,000,000 shares as a result of the completion of the
Mvelaphanda transaction and R72 million received from shares issued in terms of the Group’s employee share scheme.
The R73 million in F2008 consists entirely of shares issued in terms of the Group’s employee share scheme.
Net cash generated/(utilised)
As a result of the above, net cash generated for F2009 amounted to R804 million compared to net cash utilised of R478 million in
F2008.
Total Group cash and cash equivalents amounted to R2,804 million at 30 June 2009, as compared to R2,007 million at the end of
F2008.
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108
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
MANAGEMENT’S DISCUSSION AND ANALYSIS OF THE FINANCIAL
STATEMENTS continued
BALANCE SHEET
Net debt
Net debt (borrowings plus current portion of borrowings less cash and cash equivalents and bank overdraft) has increased from
R4,991 million (US$624 million) in F2008 to R6,092 million (US$756 million) in F2009. In F2009 Gold Fields successfully refinanced
maturing debt, which improved the debt maturity profile and provided flexibility and diversity in terms of sources of funding. The
debt maturity profile is depicted in the table below:
Debt maturity ladder
F2010
F2011
F2012
F2013 to
F2017
Total
Loan facilities (committed and uncommitted), including preference shares and commercial paper
R’million
US$’million
4,065.4
39.5
684.2
325.3
–
516.9
1,500.0
99.3
6,249.6
981.0
Utilisation – Loan facilities(committed and uncommitted), including preference shares and commercial paper
R’million
US$’million
Dollar debt translated to rand
Total (R’m)
2,242.8
39.5
318.4
684.2
86.3
695.6
–
515.4
4,154.1
–
99.3
800.4
2,927.0
740.5
5,968.5
2,561.2
1,379.8
4,154.1
800.4
8,895.5
Borrowings per balance sheet (R’m)
Current portion of borrowings per balance sheet (R’m)
Total per balance sheet (R’m)
Exchange rate: US$1 = R8.06 being the closing rate at 30 June 2009.
6,334.3
2,561.2
8,895.5
Long-term provisions
Long-term provisions at the end of F2009 were R2,320 million as compared to R2,037 million at the end of F2008 and include a
provision for post-retirement health care costs of R21 million (F2008: R21 million), a provision for environmental rehabilitation costs
of R2,268 million (F2008: R2,016 million) and other long-term provisions of R31 million (F2008: nil).
Provision for post-retirement health care costs
The Group medical scheme, Medisense, provides benefits to employees and certain of its former employees. The Group remains
liable for 50 per cent of these retired employees’ medical contributions to the medical scheme after retirement. This is applicable to
employees of the Free State operations who retired on or before 31 August 1997 and members of the West Wits operations who
retired on or before 1 January 1999.
Provision for environmental rehabilitation costs
The amount provided for environmental rehabilitation costs increased from R2,016 million in F2008 to R2,268 million in F2009. The
provision represents the present value of closure, rehabilitation and other environmental obligations incurred up to 30 June 2009. The
provision is updated annually to take account of inflation, the time value of money and any new environmental obligations incurred.
The discount rate applied in F2009 changed to a range of 7.0 per cent to 8.7 per cent (2008: 10.1 per cent to 12.6 per cent) for the
South African operations, 4.1 per cent to 4.4 per cent (2008: 4.6 per cent to 5.0 per cent) for Ghana, 6.2 per cent to 6.3 per cent
(2008: 7.6 per cent) for Australia and 6.7 per cent (2008: 6.0 per cent) in Peru.
The rates of inflation used in F2009 also changed from the previous year to 7.0 per cent (2008: 9.0 per cent) for South Africa, 3.0 per
cent (2008: 4.2 per cent) in Ghana, 2.5 per cent (2008: 3.0 per cent) in Australia and 5.4 per cent (2008: 5.4 per cent) in Peru. The
inflation adjustment for F2009 was R129 million compared with R59 million in F2008 and the interest adjustment for F2009 was
R38 million compared with R47 million in F2008.
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
109
During F2009 additional provisions were raised for new disturbances and changes in environmental legislation at:
(cid:115)(cid:0)(cid:0)(cid:36)(cid:82)(cid:73)(cid:69)(cid:70)(cid:79)(cid:78)(cid:84)(cid:69)(cid:73)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:23)(cid:16)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:52)(cid:65)(cid:82)(cid:75)(cid:87)(cid:65)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:22)(cid:24)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:43)(cid:76)(cid:79)(cid:79)(cid:70)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:19)(cid:21)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:34)(cid:69)(cid:65)(cid:84)(cid:82)(cid:73)(cid:88)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:19)(cid:19)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:51)(cid:79)(cid:85)(cid:84)(cid:72)(cid:0)(cid:36)(cid:69)(cid:69)(cid:80)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:18)(cid:20)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:51)(cid:84)(cid:0)(cid:41)(cid:86)(cid:69)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:17)(cid:17)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0)(cid:0)(cid:36)(cid:65)(cid:77)(cid:65)(cid:78)(cid:71)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:18)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:14)
Provisions were reversed for:
(cid:115)(cid:0)(cid:0)(cid:35)(cid:69)(cid:82)(cid:82)(cid:79)(cid:0)(cid:35)(cid:79)(cid:82)(cid:79)(cid:78)(cid:65)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:19)(cid:17)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0)(cid:0)(cid:33)(cid:71)(cid:78)(cid:69)(cid:87)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:24)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)
resulting in net additional provisions of R204 million.
During F2008 additional provisions were raised for new disturbances and changes in environmental legislation at:
(cid:115)(cid:0)(cid:0)(cid:35)(cid:69)(cid:82)(cid:82)(cid:79)(cid:0)(cid:35)(cid:79)(cid:82)(cid:79)(cid:78)(cid:65)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:17)(cid:19)(cid:25)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:36)(cid:82)(cid:73)(cid:69)(cid:70)(cid:79)(cid:78)(cid:84)(cid:69)(cid:73)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:24)(cid:19)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:52)(cid:65)(cid:82)(cid:75)(cid:87)(cid:65)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:22)(cid:23)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:51)(cid:79)(cid:85)(cid:84)(cid:72)(cid:0)(cid:36)(cid:69)(cid:69)(cid:80)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:21)(cid:20)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:43)(cid:76)(cid:79)(cid:79)(cid:70)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:19)(cid:19)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:34)(cid:69)(cid:65)(cid:84)(cid:82)(cid:73)(cid:88)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:18)(cid:16)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:33)(cid:71)(cid:78)(cid:69)(cid:87)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:24)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0)(cid:0)(cid:51)(cid:84)(cid:0)(cid:41)(cid:86)(cid:69)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:50)(cid:17)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)
resulting in net additional provisions of R405 million.
The South African operations contribute to dedicated environmental trust funds to provide financing for final closure and
rehabilitation costs. The amount invested in the fund is shown as a non-current asset in the financial statements and increased
from R747 million in F2008 to R887 million in F2009. The increase consists of contributions of R58 million and interest income of
R82 million. The South African operations will continue to contribute annually to the trust fund over the remaining lives of the mines,
which should ensure that sufficient funds will be available to discharge commitments for future rehabilitation costs.
Other long-term provisions
Gold Fields La Cima has formally declared their intention to jointly participate with Minera Yanacocha S.R.L. in financing of the
Kunter Wasi Road as an alternative route from the coast to the Cerro Corona Mine. Gold Fields La Cima agreed to pay a maximum
of 20 per cent of the estimated cost of the project amounting to US$12 million, which is expected to commence during the 2010
financial year and be completed by June 2011.
INFORMATION COMMUNICATION AND TECHNOLOGY (ICT)
Gold Fields ICT remains committed to supporting the Group in achieving its business strategy and is gearing towards improving
and standardising global ICT service delivery. A number of strategic programmes have been conducted during the course of this
year with the major achievement being the deployment of SAP globally within the Group. A SAP blueprint has been developed with
the objective of enhancing the extraction of value from this system.
The following strategic focus areas drive the prioritisation of activities within Gold Fields ICT. These focus areas have been translated
into five key ICT programmes as follows:
1. Safety;
2. Information Management and Communications;
3. Productivity;
4. Cost Management; and
5. ICT Operational and Delivery Excellence.
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G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
MANAGEMENT’S DISCUSSION AND ANALYSIS OF THE FINANCIAL
STATEMENTS continued
In order to deliver the key ICT strategic focus areas, the ICT organisation has focused on business architecture and an appropriate
operating model described below:
a) ICT business architecture
The Gold Fields ICT business architecture focuses the ICT organisation on business imperatives and providing business support,
while the non-core services are outsourced, i.e. infrastructure and applications support. The journey to focusing the ICT organisation
into supporting core business of mining will require a decoupling of the business, application and infrastructure layers of ICT and
adopting a multiple vendor sourcing strategy when outsourcing non-core services.
b) Operating model
A new Gold Fields ICT operating model has been developed to ensure the continuous alignment of ICT and business. This model
allows the ICT team to engage with the business, service providers and vendors to implement new projects through the projects
office and transition these projects into business as usual (BAU) through a core ICT team. The oversight by this core team has been
key to ensuring that projects are delivered to Gold Fields’ standards and transitioned to BAU with the proper contracts and Service
Level Agreements in place that best support the business.
The re-focused ICT has progressed significantly, both in terms of investment allocation as well as the delivery of key programmes
as highlighted below:
Financials
ICT has generated significant cost savings through the careful execution of its strategy. These savings are being used to finance
the necessary investments in technology and business projects for the future.
Gold Fields ICT F2010 highlights
F2010 will see ICT bring in a greater level of global standardisation to infrastructure, applications and business processes through
the following strategic projects:
(cid:115)(cid:0)(cid:0)(cid:52)(cid:72)(cid:69)(cid:0)(cid:68)(cid:69)(cid:80)(cid:76)(cid:79)(cid:89)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:79)(cid:70)(cid:0)(cid:65)(cid:78)(cid:0)(cid:41)(cid:52)(cid:0)(cid:51)(cid:79)(cid:76)(cid:85)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:84)(cid:79)(cid:0)(cid:77)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:0)(cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76)(cid:0)(cid:80)(cid:82)(cid:79)(cid:74)(cid:69)(cid:67)(cid:84)(cid:83)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:52)(cid:72)(cid:69)(cid:0)(cid:82)(cid:69)(cid:78)(cid:69)(cid:71)(cid:79)(cid:84)(cid:73)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:47)(cid:85)(cid:84)(cid:83)(cid:79)(cid:85)(cid:82)(cid:67)(cid:69)(cid:0)(cid:69)(cid:78)(cid:86)(cid:73)(cid:82)(cid:79)(cid:78)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:84)(cid:79)(cid:0)(cid:71)(cid:69)(cid:78)(cid:69)(cid:82)(cid:65)(cid:84)(cid:69)(cid:0)(cid:83)(cid:65)(cid:86)(cid:73)(cid:78)(cid:71)(cid:83)(cid:0)(cid:79)(cid:78)(cid:0)(cid:79)(cid:85)(cid:84)(cid:83)(cid:79)(cid:85)(cid:82)(cid:67)(cid:69)(cid:68)(cid:0)(cid:67)(cid:79)(cid:77)(cid:80)(cid:79)(cid:78)(cid:69)(cid:78)(cid:84)(cid:83)(cid:27)
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(cid:115)(cid:0)(cid:0)(cid:36)(cid:69)(cid:86)(cid:69)(cid:76)(cid:79)(cid:80)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:41)(cid:35)(cid:52)(cid:0)(cid:39)(cid:76)(cid:79)(cid:66)(cid:65)(cid:76)(cid:0)(cid:36)(cid:69)(cid:76)(cid:73)(cid:86)(cid:69)(cid:82)(cid:89)(cid:0)(cid:37)(cid:88)(cid:67)(cid:69)(cid:76)(cid:76)(cid:69)(cid:78)(cid:67)(cid:69)(cid:0)(cid:48)(cid:82)(cid:79)(cid:71)(cid:82)(cid:65)(cid:77)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:52)(cid:72)(cid:69)(cid:0)(cid:76)(cid:65)(cid:85)(cid:78)(cid:67)(cid:72)(cid:0)(cid:79)(cid:70)(cid:0)(cid:65)(cid:0)(cid:82)(cid:69)(cid:67)(cid:79)(cid:82)(cid:68)(cid:83)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:68)(cid:79)(cid:67)(cid:85)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:77)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:83)(cid:89)(cid:83)(cid:84)(cid:69)(cid:77)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0)(cid:0)(cid:36)(cid:69)(cid:80)(cid:76)(cid:79)(cid:89)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:79)(cid:70)(cid:0)(cid:65)(cid:0)(cid:67)(cid:79)(cid:78)(cid:83)(cid:79)(cid:76)(cid:73)(cid:68)(cid:65)(cid:84)(cid:69)(cid:68)(cid:0)(cid:66)(cid:85)(cid:83)(cid:73)(cid:78)(cid:69)(cid:83)(cid:83)(cid:0)(cid:73)(cid:78)(cid:84)(cid:69)(cid:76)(cid:76)(cid:73)(cid:71)(cid:69)(cid:78)(cid:67)(cid:69)(cid:0)(cid:80)(cid:76)(cid:65)(cid:84)(cid:70)(cid:79)(cid:82)(cid:77)(cid:14)
SARBANES-OXLEY
Gold Fields, being a foreign private issuer under US SEC rules, has to comply with the requirements of the Sarbanes-Oxley Act,
2002. Management’s compliance programme consists of self assessments, focused walk-throughs and operating effectiveness
testing executed throughout the year, on a quarterly basis.
At the time of this reporting, management has completed control design and operating effectiveness testing for the Group across
all significant locations, with the exception of the processes relating to preparation of US GAAP reporting (20F).
The results to date of said compliance programme indicate a very high level of compliance and no indication of a material
breakdown in controls was noted.
SOUTH AFRICA STRATEGIC SOURCING AND INTEGRATED IMPROVEMENT PROJECTS
Cumulative benefits delivered for the South African operations during F2009 were around R70 million, achieved mainly through
pricing claw-back benefits from the record high peak prices recorded in the first half of F2009, together with integrated continuous
improvement initiatives. The early part of F2009 also benefited from forward buying strategies largely in steel related products and
higher inventory levels which allowed reduced spend quantities and lower stock average prices during the first quarter of F2009
and thus avoided the full impact of the record inflation prior to the global downturn.
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
111
The main reduced spend benefits came from areas like fuel and cables reduced prices and buying strategies across steel products
like rails and support items. Improvements in quality and related volumes of repairs and capital purchases also added significant
benefits.
The first half of F2009 ended up seeing high net price inflation in materials spend of more than 10 per cent, before the
commencement of a turn in the inflation cycle in the second half, on the back of the global slowdown, where a marginal net price
deflation was experienced. The net full year price inflation for materials was between 3 per cent and 5 per cent, significantly down
from the start of year projections of more than 20 per cent inflation. The big benefit is that the pricing baselines have been re-set
to reflect the global economic downturn and have not been at the high prices seen at the beginning of F2009.
During the fourth quarter of F2009, it became evident that deflation had bottomed out and corrected across most commodities,
especially oil, ammonia and copper, thereby effectively catching up again with the long-term trend line. A gradual upturn of pricing
from the new corrected baseline is expected during the next year together with power and labour related inflation flowing through.
INTERNATIONAL OPERATIONS INTEGRATED CONTINUOUS IMPROVEMENT INITIATIVES AND
STRATEGIC SOURCING AND SUPPLY BENEFITS ACHIEVED
Cumulative continuous improvement, sourcing and rise and fall claw-back related benefits across the International operations for
F2009 of around US$38 million were achieved. The big benefit is that the pricing baselines have been re-set to reflect the global
economic downturn and have not been at the high prices seen at the beginning of F2009. The main areas resulting in benefits were
diesel rise and fall across the regions, mining contracts improvement projects in Australia and power rate adjustments in Ghana.
High inflation in the first part of F2009 largely off-set the visible flow through of the above realised pricing claw-backs and benefits,
resulting in a fairly flat cost line across most commodities, except for the average weighted prices for diesel that ended lower.
The market for commodities like oil and ammonia corrected to the long-term trend line and prices are expected to gradually increase
going into the new fiscal year.
Australia
Cumulative benefits delivered in Australia for F2009 added up to around US$17 million (A$20 million) largely from underground and
surface mining contracts improvement projects, diesel rise and fall claw-back, travel and accommodation cost savings.
Ghana
Cumulative F2009 benefits for Ghana of around US$16 million were recorded, largely through rise and fall claw-back in diesel,
reduced power tariffs, explosives cost reductions, cyanide and grinding balls cost reductions.
Peru
Estimated cumulative benefits for F2009 in Peru amounted to around US$5 million across areas like diesel, grinding balls,
emulsions, ammonia nitrate and freight rates.
Paul Schmidt
Chief Financial Officer
10 September 2009
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G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
DIRECTORS’ REPORT
The directors have pleasure in submitting their report and the annual financial statements of the company and the Group for the
year ended 30 June 2009.
PROFILE
Business of the company
Gold Fields Limited is one of the world’s largest unhedged producers of gold with attributable steady state production of
approximately 3.6* million ounces per annum from nine operating mines in South Africa, Peru, Ghana and Australia. The company
has total attributable Mineral Reserves of 81 million ounces and Mineral Resources of 271 million ounces. Gold Fields is listed on
JSE Limited (primary listing), New York Stock Exchange (NYSE), NASDAQ Dubai Limited (NASDAQ Dubai), NYSE Euronext in
Brussels (NYX) and Swiss Exchange (SWX).
FINANCIAL RESULTS
The information on the financial position of the Group for the year ended 30 June 2009 is set out in the financial statements on
pages 112 to 214 of this annual report. The income statement set out in this annual report shows profit attributable to Gold Fields
Limited members of R1,535.6 million (US$170.4 million) compared to R4,457.5 million (US$613.0 million) in 2008.
REVIEW OF OPERATIONS
The various operations are comprehensively reviewed on pages 22 to 43.
COMPLIANCE WITH FINANCIAL REPORTING STANDARDS
The Gold Fields Group annual financial statements comply with International Financial Reporting Standards, the South African
Companies Act, and JSE Limited Listings Requirements (JSE Listings Requirements).
REPORTING IN UNITED STATES DOLLARS
To assist international investors, the income statement, balance sheet, statement of changes in equity and cash flow statement of
the Group have been translated into United States dollars on pages 140 to 198.
SHARE CAPITAL
Authorised
The authorised share capital of the company is R500,000,010 divided into 1,000,000,000 ordinary par value shares of 50 cents
each and 1,000 non-convertible redeemable preference par value shares of 1 cent each.
The following are the movements in the issued ordinary share capital of the company for the year ended 30 June 2009
At the beginning of the year
Exercise of options by participants in the Gold Fields
incentive schemes
Shares issued to Mvelaphanda Gold (Proprietary)
Limited
2009
2008
Number
of shares
Rand
Number
of shares
Rand
653,200,682
326,600,341.00
652,158,066
326,079,033.00
1,549,167
774,583.50
1,042,616
521,308.00
50,000,000
25,000,000.00
–
–
At 30 June
704,749,849
352,374,924.50
653,200,682
326,600,341.00
The following are the movements in the issued non-convertible redeemable preference share capital of the company for the year
ended 30 June 2009:
At the beginning of the year
Shares redeemed from FirstRand Bank Limited
At the end of the year
*Based on the annualised run rate for the June 2009 quarter.
2009
Number
of shares
100
50
50
Rand
1.00
0.50
0.50
2008
Number
of shares
Rand
100
1.00
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113
In terms of the authority granted by shareholders at the annual general meeting held on 2 November 2007, 100 of the non-
convertible redeemable preference shares were issued to FirstRand Bank Limited on 20 December 2007. The reason for issuing
the non-convertible redeemable preference shares was to provide the company with a mechanism to raise cost-effective capital
equivalent to debt finance as part of a general capital management programme which, in the opinion of the directors, was deemed
appropriate for the activities of the company.
On 10 October 2008 the company elected to redeem 50 (fifty) preference shares from FirstRand Bank Limited for a consideration
of R623,169,470.49.
In terms of the authority granted by shareholders at the annual general meeting held on 12 November 2008, all of the authorised but
unissued ordinary and preference share capital at that date, after setting aside so many ordinary shares as may be required to be
allotted and issued pursuant to the share incentive schemes, was placed under the control of the directors. This authority expires
at the next annual general meeting where shareholders will be asked to renew this authority.
On 17 March 2009 the company announced that, in terms of the R4.1 billion Black Economic Empowerment transaction approved
by shareholders of Gold Fields on 8 March 2004, and which reached maturity on 17 March 2009, Mvelaphanda Resources Limited
(Mvela Resources) took receipt, through its wholly owned subsidiary Mvelaphanda Gold (Proprietary) Limited (Mvela Gold), of its
15% shareholding in GFI Mining South Africa (Proprietary) Limited (GFIMSA), a subsidiary of Gold Fields which owns and operates
the South African gold mining assets of Gold Fields (the GFIMSA Shares). Upon receipt of the GFIMSA Shares, Mvela Gold exercised
its right to require the exchange of the GFIMSA Shares for 50 million new ordinary shares in the issued share capital of the company.
In terms of JSE Listings Requirements, shareholders may, subject to certain conditions, authorise the directors to issue the shares
held under their control for cash other than by means of a rights offer to shareholders. In order that the directors of the company
may be placed in a position to take advantage of favourable circumstances which may arise for the issue of such shares for cash,
without restriction, for the benefit of the company, shareholders will be asked to consider an ordinary resolution to this effect at the
forthcoming annual general meeting.
Repurchase of shares
The company has not exercised the general authority granted to buy back shares from its issued ordinary share capital granted at
the annual general meeting held on 12 November 2008. At the next annual general meeting, shareholders will be asked to renew
the general authority for the acquisition by the company, or a subsidiary of the company, of its own shares.
Listings
The abbreviated name under which the company is listed on JSE Limited (JSE) is “GFIELDS” and the short code is GFI. The
company also has a secondary listing on the following stock exchanges:
New York Stock Exchange (NYSE); NASDAQ Dubai Limited (NASDAQ Dubai); NYSE Euronext in Brussels (NYX) and Swiss
Exchange (SWX).
At 30 June 2009, the company had in issue through The Bank of New York Mellon on the NYSE, 298,196,921 (2008: 320,299,828)
American Depositary Receipts (ADRs). Each ADR is equal to one ordinary share.
The GF Management Incentive Scheme
At the annual general meeting on 10 November 1999, shareholders approved the adoption of the GF Management Incentive
Scheme (the Scheme) to substitute the scheme in place prior to the reverse takeover of Driefontein by Gold Fields in 1999. This
scheme was introduced to provide an incentive for certain officers and employees of the Group to acquire shares in the company.
No further allocations of options under this scheme are being made in view of the introduction of the Gold Fields 2005 Share Plan
(see below) and the scheme will be closed once all options have been exercised or forfeited. Currently, the last date of expiry is
23 March 2013.
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G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
DIRECTORS’ REPORT continued
The salient features of the scheme are that:
(cid:115)(cid:0)(cid:41)(cid:84)(cid:0)(cid:73)(cid:83)(cid:0)(cid:67)(cid:79)(cid:77)(cid:80)(cid:82)(cid:73)(cid:83)(cid:69)(cid:68)(cid:0)(cid:79)(cid:70)(cid:0)(cid:79)(cid:78)(cid:76)(cid:89)(cid:0)(cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:0)(cid:79)(cid:80)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:27)
(cid:115)(cid:0)(cid:33)(cid:0)(cid:84)(cid:72)(cid:73)(cid:82)(cid:68)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:84)(cid:79)(cid:84)(cid:65)(cid:76)(cid:0)(cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:0)(cid:79)(cid:80)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:71)(cid:82)(cid:65)(cid:78)(cid:84)(cid:0)(cid:86)(cid:69)(cid:83)(cid:84)(cid:83)(cid:0)(cid:85)(cid:80)(cid:79)(cid:78)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:83)(cid:69)(cid:67)(cid:79)(cid:78)(cid:68)(cid:12)(cid:0)(cid:84)(cid:72)(cid:73)(cid:82)(cid:68)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:70)(cid:79)(cid:85)(cid:82)(cid:84)(cid:72)(cid:0)(cid:65)(cid:78)(cid:78)(cid:73)(cid:86)(cid:69)(cid:82)(cid:83)(cid:65)(cid:82)(cid:73)(cid:69)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:71)(cid:82)(cid:65)(cid:78)(cid:84)(cid:0)(cid:68)(cid:65)(cid:84)(cid:69)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0)(cid:51)(cid:72)(cid:65)(cid:82)(cid:69)(cid:0)(cid:79)(cid:80)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:0)(cid:69)(cid:88)(cid:80)(cid:73)(cid:82)(cid:69)(cid:0)(cid:78)(cid:79)(cid:0)(cid:76)(cid:65)(cid:84)(cid:69)(cid:82)(cid:0)(cid:84)(cid:72)(cid:65)(cid:78)(cid:0)(cid:83)(cid:69)(cid:86)(cid:69)(cid:78)(cid:0)(cid:89)(cid:69)(cid:65)(cid:82)(cid:83)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:71)(cid:82)(cid:65)(cid:78)(cid:84)(cid:0)(cid:68)(cid:65)(cid:84)(cid:69)(cid:14)
The directors are authorised to issue, allot and grant options to acquire up to a maximum of 22,791,830 ordinary shares in the
unissued share capital of the company in terms of the scheme. At 30 June 2009, this represented 3.23 per cent of shares in issue.
The unexercised options under the scheme represented 0.33 per cent of shares in issue as at 30 June 2009.
Further details of the scheme are disclosed in note 5 of the financial statements on page 148.
The GF Non-executive Director Share Plan
At the annual general meeting on 31 October 2001, shareholders approved a resolution to proceed with the allocation of options to
non-executive directors. As a result, each non-executive director has been allocated the options detailed on page 148.
The salient features of the scheme are as follows:
(cid:115)(cid:0)(cid:51)(cid:72)(cid:65)(cid:82)(cid:69)(cid:0)(cid:79)(cid:80)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:0)(cid:86)(cid:69)(cid:83)(cid:84)(cid:0)(cid:79)(cid:78)(cid:69)(cid:0)(cid:89)(cid:69)(cid:65)(cid:82)(cid:0)(cid:65)(cid:70)(cid:84)(cid:69)(cid:82)(cid:0)(cid:65)(cid:76)(cid:76)(cid:79)(cid:67)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:17)(cid:16)(cid:12)(cid:16)(cid:16)(cid:16)(cid:0)(cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:0)(cid:79)(cid:80)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:0)(cid:87)(cid:73)(cid:76)(cid:76)(cid:0)(cid:66)(cid:69)(cid:0)(cid:73)(cid:83)(cid:83)(cid:85)(cid:69)(cid:68)(cid:0)(cid:65)(cid:78)(cid:78)(cid:85)(cid:65)(cid:76)(cid:76)(cid:89)(cid:0)(cid:84)(cid:79)(cid:0)(cid:78)(cid:79)(cid:78)(cid:13)(cid:69)(cid:88)(cid:69)(cid:67)(cid:85)(cid:84)(cid:73)(cid:86)(cid:69)(cid:0)(cid:68)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82)(cid:83)(cid:0)(cid:80)(cid:82)(cid:79)(cid:86)(cid:73)(cid:68)(cid:69)(cid:68)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:68)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82)(cid:0)(cid:73)(cid:78)(cid:0)(cid:81)(cid:85)(cid:69)(cid:83)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:65)(cid:84)(cid:84)(cid:69)(cid:78)(cid:68)(cid:83)(cid:0)(cid:65)(cid:84)(cid:0)(cid:76)(cid:69)(cid:65)(cid:83)(cid:84)(cid:0)(cid:23)(cid:21)(cid:0)(cid:80)(cid:69)(cid:82)(cid:0)
cent of board meetings; and
(cid:115)(cid:0)(cid:33)(cid:0)(cid:68)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82)(cid:0)(cid:87)(cid:73)(cid:76)(cid:76)(cid:0)(cid:70)(cid:79)(cid:82)(cid:70)(cid:69)(cid:73)(cid:84)(cid:0)(cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:0)(cid:79)(cid:80)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:0)(cid:19)(cid:16)(cid:0)(cid:68)(cid:65)(cid:89)(cid:83)(cid:0)(cid:65)(cid:70)(cid:84)(cid:69)(cid:82)(cid:0)(cid:65)(cid:0)(cid:68)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82)(cid:0)(cid:76)(cid:69)(cid:65)(cid:86)(cid:69)(cid:83)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:34)(cid:79)(cid:65)(cid:82)(cid:68)(cid:14)
No further allocations of options under this Plan are being made in view of the introduction of the Gold Fields Limited 2005 Non-
executive Share Plan (see below) and the plan will be closed once all options have been exercised or forfeited. Currently, the last
date of expiry is 12 February 2011.
Further details of the scheme are disclosed in note 5 of the financial statements on page 148.
Gold Fields Limited 2005 Share Plan
At the annual general meeting on 17 November 2005, shareholders approved the adoption of the Gold Fields Limited 2005
Share Plan (the Plan) to replace the GF Management Incentive Scheme approved in 1999. The Plan provides for two methods
of participation, namely the Performance Allocated Share Appreciation Rights Method (SARS) and the Performance Vesting
Restricted Share Method (PVRS). The Plan seeks to attract, retain, motivate and reward participating employees on a basis which
seeks to align the interests of such employees with those of the company’s share owners.
The salient features of the plan are as follows:
(cid:115)(cid:0)(cid:0)(cid:0)(cid:48)(cid:54)(cid:50)(cid:51)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:51)(cid:33)(cid:50)(cid:51)(cid:0)(cid:65)(cid:82)(cid:69)(cid:0)(cid:79)(cid:70)(cid:70)(cid:69)(cid:82)(cid:69)(cid:68)(cid:0)(cid:84)(cid:79)(cid:0)(cid:80)(cid:65)(cid:82)(cid:84)(cid:73)(cid:67)(cid:73)(cid:80)(cid:65)(cid:78)(cid:84)(cid:83)(cid:0)(cid:65)(cid:78)(cid:78)(cid:85)(cid:65)(cid:76)(cid:76)(cid:89)(cid:0)(cid:68)(cid:85)(cid:82)(cid:73)(cid:78)(cid:71)(cid:0)(cid:45)(cid:65)(cid:82)(cid:67)(cid:72)(cid:14)(cid:0)(cid:49)(cid:85)(cid:65)(cid:82)(cid:84)(cid:69)(cid:82)(cid:76)(cid:89)(cid:0)(cid:65)(cid:76)(cid:76)(cid:79)(cid:67)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:0)(cid:65)(cid:82)(cid:69)(cid:0)(cid:65)(cid:76)(cid:83)(cid:79)(cid:0)(cid:77)(cid:65)(cid:68)(cid:69)(cid:0)(cid:73)(cid:78)(cid:0)(cid:42)(cid:85)(cid:78)(cid:69)(cid:12)(cid:0)(cid:51)(cid:69)(cid:80)(cid:84)(cid:69)(cid:77)(cid:66)(cid:69)(cid:82)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)
December on a pro-rata basis to qualifying new employees. PVRS are performance-related shares, granted at zero cost;
(cid:115)(cid:0)(cid:0)(cid:0)(cid:33)(cid:76)(cid:76)(cid:0) (cid:48)(cid:54)(cid:50)(cid:51)(cid:0) (cid:65)(cid:76)(cid:76)(cid:79)(cid:67)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:0) (cid:77)(cid:65)(cid:68)(cid:69)(cid:0) (cid:70)(cid:82)(cid:79)(cid:77)(cid:0) (cid:17)(cid:0) (cid:45)(cid:65)(cid:82)(cid:67)(cid:72)(cid:0) (cid:18)(cid:16)(cid:16)(cid:22)(cid:0) (cid:84)(cid:79)(cid:0) (cid:17)(cid:0) (cid:45)(cid:65)(cid:82)(cid:67)(cid:72)(cid:0) (cid:18)(cid:16)(cid:16)(cid:24)(cid:0) (cid:87)(cid:69)(cid:82)(cid:69)(cid:0) (cid:67)(cid:79)(cid:78)(cid:68)(cid:73)(cid:84)(cid:73)(cid:79)(cid:78)(cid:65)(cid:76)(cid:76)(cid:89)(cid:0) (cid:65)(cid:87)(cid:65)(cid:82)(cid:68)(cid:69)(cid:68)(cid:0) (cid:84)(cid:79)(cid:0) (cid:80)(cid:65)(cid:82)(cid:84)(cid:73)(cid:67)(cid:73)(cid:80)(cid:65)(cid:78)(cid:84)(cid:83)(cid:14)(cid:0) (cid:34)(cid:65)(cid:83)(cid:69)(cid:68)(cid:0) (cid:79)(cid:78)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0)
rules of the Plan, the actual number of PVRS which would be settled to a participant three years after the original award date
is determined by the company’s performance measured against the performance of five other major gold mining companies
(the peer group) based on the relative change in the Gold Fields share price compared to the basket of the respective US dollar
share prices of the peer group. From 1 June 2008 the rules were modified so that two performance measures apply. The target
performance criterion has been set at 85% of the company’s expected gold production over the three year measurement period
as set out in the Business Plans of the company approved by the Board. In the event that the target performance criterion is
met the full initial target award shall be settled on the settlement date. In addition the Remuneration Committee has determined
that the number of PVRS to be settled may be increased by up to 300% of the number of the initial target PVRS conditionally
awarded, depending on the performance of the company relative to the performance of five other major gold mining companies
(the peer group) based on the relative change in the Gold Fields share price compared to the basket of the respective US dollar
share prices of the peer group. The above amendments were effected under the ambit of the existing rules as previously
approved by the shareholders in the annual general meeting;
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G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
115
(cid:115)(cid:0)(cid:0)(cid:51)(cid:33)(cid:50)(cid:51)(cid:0)(cid:65)(cid:82)(cid:69)(cid:0)(cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:0)(cid:79)(cid:80)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:12)(cid:0)(cid:71)(cid:82)(cid:65)(cid:78)(cid:84)(cid:69)(cid:68)(cid:0)(cid:65)(cid:84)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:87)(cid:69)(cid:73)(cid:71)(cid:72)(cid:84)(cid:69)(cid:68)(cid:0)(cid:65)(cid:86)(cid:69)(cid:82)(cid:65)(cid:71)(cid:69)(cid:0)(cid:80)(cid:82)(cid:73)(cid:67)(cid:69)(cid:0)(cid:79)(cid:86)(cid:69)(cid:82)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:76)(cid:65)(cid:83)(cid:84)(cid:0)(cid:18)(cid:16)(cid:0)(cid:84)(cid:82)(cid:65)(cid:68)(cid:73)(cid:78)(cid:71)(cid:0)(cid:68)(cid:65)(cid:89)(cid:83)(cid:12)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0)(cid:0)(cid:0)(cid:52)(cid:72)(cid:69)(cid:0)(cid:51)(cid:33)(cid:50)(cid:51)(cid:0)(cid:87)(cid:73)(cid:76)(cid:76)(cid:0)(cid:86)(cid:69)(cid:83)(cid:84)(cid:0)(cid:79)(cid:78)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:84)(cid:72)(cid:73)(cid:82)(cid:68)(cid:0)(cid:65)(cid:78)(cid:78)(cid:73)(cid:86)(cid:69)(cid:82)(cid:83)(cid:65)(cid:82)(cid:89)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:71)(cid:82)(cid:65)(cid:78)(cid:84)(cid:0)(cid:68)(cid:65)(cid:84)(cid:69)(cid:12)(cid:0)(cid:66)(cid:85)(cid:84)(cid:0)(cid:77)(cid:65)(cid:89)(cid:0)(cid:66)(cid:69)(cid:0)(cid:69)(cid:88)(cid:69)(cid:82)(cid:67)(cid:73)(cid:83)(cid:69)(cid:68)(cid:0)(cid:66)(cid:69)(cid:84)(cid:87)(cid:69)(cid:69)(cid:78)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:84)(cid:72)(cid:73)(cid:82)(cid:68)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:83)(cid:73)(cid:88)(cid:84)(cid:72)(cid:0)(cid:65)(cid:78)(cid:78)(cid:73)(cid:86)(cid:69)(cid:82)(cid:83)(cid:65)(cid:82)(cid:89)(cid:0)(cid:79)(cid:70)(cid:0)
the grant date by existing Gold Fields employees.
The details of the executive directors’ participation in the above scheme are listed on page 117.
Further details of the scheme are disclosed in note 5 of the financial statements on page 148.
Gold Fields Limited 2005 Non-executive Share Plan
At the annual general meeting on 17 November 2005, shareholders approved the adoption of the Gold Fields Limited 2005 Non-
executive Share Plan to replace the GF Non-executive Director Share Plan approved in 2001. The 2005 Non-executive Plan provides
for the award of restricted shares to non-executive directors that ordinarily vest after a period of three years from the award thereof.
The salient features of the Plan are as follows:
(cid:115)(cid:0)(cid:0)
(cid:115)(cid:0)(cid:0)
(cid:50)(cid:69)(cid:83)(cid:84)(cid:82)(cid:73)(cid:67)(cid:84)(cid:69)(cid:68)(cid:0)(cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83)(cid:0)(cid:65)(cid:82)(cid:69)(cid:0)(cid:84)(cid:79)(cid:0)(cid:66)(cid:69)(cid:0)(cid:71)(cid:82)(cid:65)(cid:78)(cid:84)(cid:69)(cid:68)(cid:0)(cid:65)(cid:78)(cid:78)(cid:85)(cid:65)(cid:76)(cid:76)(cid:89)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:51)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83)(cid:0)(cid:87)(cid:73)(cid:76)(cid:76)(cid:0)(cid:86)(cid:69)(cid:83)(cid:84)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:66)(cid:69)(cid:0)(cid:83)(cid:69)(cid:84)(cid:84)(cid:76)(cid:69)(cid:68)(cid:0)(cid:79)(cid:78)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:84)(cid:72)(cid:73)(cid:82)(cid:68)(cid:0)(cid:65)(cid:78)(cid:78)(cid:73)(cid:86)(cid:69)(cid:82)(cid:83)(cid:65)(cid:82)(cid:89)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:65)(cid:87)(cid:65)(cid:82)(cid:68)(cid:0)(cid:68)(cid:65)(cid:84)(cid:69)(cid:14)
Further details of the scheme are disclosed in note 5 of the financial statements on page 148.
The directors are authorised to issue and allot all or any of such shares required for the plans, but in aggregate with the other
schemes, may not exceed 5 per cent of the total issued ordinary shares in the capital of the company. The unexercised options
and shares under the schemes and plans represented 1.98 per cent of shares in issue at 30 June 2009.
Consolidated table of equity-settled instruments under all the schemes
Outstanding at 1 July 2008
Movement during the year:
Granted during the year
Exercised and released
Conditions for vesting not met
Forfeited
Cancelled
Outstanding at 30 June 2009
Number of
equity securities
13,674,343**
3,980,042
(1,499,836)
(226,900)
(1,999,738)
–
13,927,911***
** Included in this number are 146,700 options and 81,500 restricted shares available to non-executive directors under the GF Non-executive Director Share Plan and
the Gold Fields Limited 2005 Non-executive Share Plan, respectively.
*** Included in this number are 81,700 options and 101,100 restricted shares available to non-executive directors under the GF Non-executive Share Plan and the Gold
Fields Limited 2005 Non-executive Share Plan, respectively.
Due to the number of prohibited periods which the company has been subjected to as a result of various transactions, the expiry
dates of options under the Scheme and the Plan have been extended so as to not prejudice the individuals affected.
116
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
DIRECTORS’ REPORT continued
DIRECTORATE
Composition of the Board
The Board currently consists of one executive director and twelve non-executive directors.
The following changes in directorate occurred during the year under review:
Director
Richard Menell
Terence Goodlace
Gayle Wilson
Roberto Dañino
Cheryl Carolus
Nature of change Date of change
Appointed
Resigned
Appointed
Appointed
Appointed
8 October 2008
15 October 2008
1 August 2008
10 March 2009
10 March 2009
Subsequent to year end, Professor Gill Marcus resigned from the Board with effect from 20 July 2009 and on 21 August 2009
Mr Alan Richard Hill was appointed on the Board as an independent non-executive director.
Directors retiring in terms of the company’s articles of association are Ms CA Carolus, Messrs R Dañino, AR Hill, NJ Holland,
RP Menell, and being eligible, are available for re-election.
The board of directors of various subsidiaries of Gold Fields comprise some of the executive officers and the executive director,
where appropriate.
Interest of directors
As at 30 June 2009, the directors’ beneficial and associate interest in the issued share capital of the company was 0.022 per cent
(2008: 0.024 per cent) in aggregate per director and no one director individually exceeds one per cent of the issued share capital or
voting control of the company.
Director
Alan Wright
Nicholas Holland
Terence Goodlace*
Kofi Ansah
Cheryl Carolus
Roberto Dañino
John Hopwood
Gill Marcus*
Richard Menell
David Murray
Donald Ncube
Rupert Pennant-Rea
Chris von Christierson
Gayle Wilson
Total
Beneficial
Associate interest
Direct
Indirect
Direct
2009
2008
68,582
−
−
−
−
−
15,000
900
−
−
−
2,030
−
−
68,582
−
−
−
−
−
15,000
900
−
−
−
−
−
−
2009
67,108
−
−
−
−
−
−
−
−
−
−
−
−
−
86,512
84,482
67,108
2008
67,108
−
−
−
−
−
−
−
−
−
−
−
−
−
67,108
2009
2,724
−
−
−
−
−
−
−
−
−
−
−
−
−
2,724
2008
2,724
−
−
−
−
−
−
−
−
−
−
−
−
−
2,724
* Terence Goodlace resigned on 15 October 2008 and Gill Marcus resigned on 20 July 2009.
At the date this Director’s Report was prepared, none of the current directors of the Group has disposed of any of the shares held
by them as at 30 June 2009, nor had they acquired any additional shares.
The company has not entered into any contracts of service, other than the service contract with the executive director of the
company.
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
117
Directors’ equity-settled instruments
The directors held the following equity-settled instruments at 30 June 2009:
Equity-settled
Equity-settled
Equity-settled
instruments
instruments
instruments
granted during
forfeited during
at 30 June 2008
the year
the year
Conditions
for vesting
not met
Equity-settled
instruments
exercised during
Equity-settled
instruments
the year
at 30 June 2009
Average
Average
Average
Average
Average
strike
price
strike
price
strike
price
strike
price
strike Benefit
price
arising
Average
strike
price
Director
Number
(rand) Number
(rand) Number
(rand) Number
(rand) Number
(cents) (R million) Number
(cents)
64,900
61.88
7,600
–
352,850
79.34
120,040
109.66
–
(9,600)
(138,675)
107.41
200,675
101.91
–
14,300
39.62
5,000
–
–
3,500
1,200
–
–
3,500
32,600
27,600
–
–
–
–
–
–
–
–
70.90
79.68
–
–
–
5,000
5,000
–
5,000
5,000
5,000
5,000
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(28,000)
–
43.7
–
(46,600)
82.57
(3,000)
–
–
–
–
–
–
–
(3,000)
(3,000)
–
–
–
–
–
–
–
–
–
–
–
–
1.90
44,500
–
463,290
1.85
0.25
15,400
16,300
89.00
89.92
131.22
39.62
–
–
–
–
–
–
–
0.20
0.19
–
–
–
8,500
6,200
–
5,000
8,500
34,600
29,600
–
–
–
–
–
–
–
–
70.9
79.68
–
Alan Wright
Nicholas Holland
Terence Goodlace¹
Kofi Ansah
Cheryl Carolus²
Roberto Dañino²
John Hopwood
Gill Marcus³
Richard Menell4
David Murray
Donald Ncube
Rupert Pennant-Rea
Chris von Christierson
Gayle Wilson5
Notes:
¹ Resigned 15 October 2008.
² Appointed 10 March 2009.
³ Resigned 20 July 2009.
4 Appointed 8 October 2008.
5 Appointed 1 August 2008.
A register of detailed equity-settled instruments outstanding by tranche is available for inspection at the company’s registered office.
The equity-settled instrument terms are detailed on pages 114 and 148.
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G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
DIRECTORS’ REPORT continued
Directors’ fees
In terms of the articles of association the fees for services as non-executive directors are determined by the company in general
meeting.
Board fees
Directors’
fees
Committee
fees
Travel
allowances3
Pension
scheme total
Expense
Salary
Total bonus1
contributions
allowances
20092
2008*
6,402,897.00
3,745,533.00
892,960.00
693,950.00
11,735,340.00
6,841,550.00
1,158,186.00
1,991,796.00
116,550.00
–
3,266,532.00
838,195.00
Director
Executive
Nicholas Holland
Terence Goodlace4
Non-executive
Alan Wright
Kofi Ansah
Cheryl Carolus5
Roberto Dañino5
John Hopwood
Gill Marcus6
Richard Menell7
David Murray
Donald Ncube
1,118,500.00
46,200.00
212,700.00
161,200.00
251,196.00
72,140.88
72,140.88
14,290.61
–
46,200.00
46,200.00
202,700.00
237,950.00
202,700.00
80,250.00
–
–
154,017.39
102,964.40
46,200.00
212,700.00
132,550.00
251,196.00
202,700.00
161,100.00
–
Rupert Pennant-Rea
193,900.00
162,500.00
251,196.00
Chris von Christierson
203,900.00
202,200.00
213,664.00
Gayle Wilson8
193,791.30
102,002.02
46,200.00
311,249.00
1,475,949.00
1,053,000.00
–
–
–
625,096.00
485,118.76
132,631.49
118,340.88
–
–
96,858.00
537,508.00
489,250.00
–
–
–
282,950.00
281,384.53
303,181.79
–
596,446.00
263,243.76
7,372.00
371,172.00
382,625.00
–
607,596.00
549,452.00
158,918.00
778,682.00
534,993.76
118.483.00
460,476.32
–
Total
Notes:
3,041,890.45
1,357,007.03
1,198,252.00
7,561,083.00
5,737,329.00
1,009,510.00
1,386,830.00
21,291,901.48
11,718,812.81
¹ Bonuses are for F2008 performance, paid in F2009.
² These amounts reflect the full directors’ emoluments in rand for comparative purposes. The portion of executive directors’ emoluments payable in US dollars is paid
in terms of agreements with the offshore subsidiaries for work done by directors offshore for offshore companies. The total US dollar amounts paid for F2009 were
as follows:
NJ Holland US$415,930.29 and TP Goodlace US$40,886.77.
³ A travel allowance for the non-executive directors was approved at the AGM held on 17 November 2005.
4 Resigned 15 October 2008.
5 Appointed 10 March 2009.
6 Resigned 20 July 2009.
7 Appointed 8 October 2008.
8 Appointed 1 August 2008.
*2008 remuneration restated as subsequently determined to be more accurate to include expense allowances.
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119
Remuneration policy
The company’s remuneration policy is determined by the Remuneration Committee, which over the past year has utilised
appropriate external advice in evaluating and setting this policy.
Gold Fields’ remuneration philosophy is aimed at attracting and retaining motivated high-calibre executives aligned with the interests
of shareholders. Such alignment is achieved through an appropriate mix of fixed and performance-based remuneration which
provides for high performers to be well rewarded.
Executives are paid gross remuneration packages (GRP), which include all fixed elements of remuneration, with the exception of
a standard 24 working days’ leave per annum, with the company having no contingent retirement or medical liabilities. A portion
of the fixed remuneration of executives with international responsibilities is paid in US dollars. Increases are determined, usually
effective January each year, by the Remuneration Committee informed by remuneration surveys to which the company subscribes
and independent advice, where necessary.
The short-term incentive is an annual incentive bonus in terms of which the executive directors are able to earn bonuses of
50 per cent of their GRPs for on-target performance. This incentive bonus could increase above 50 per cent due to specific out-
performance. Incentive bonuses are based on targets approved in advance by the Remuneration Committee, comprising safety,
corporate, operational and personal objectives. In the case of the chief executive, 70 per cent of his incentive is based on corporate
objectives. In other cases corporate and operational objectives (where applicable) comprise 35 per cent to 70 per cent of the
incentive with personal objectives making up the balance. Based on the bonus accrued for the F2008 financial year, in F2009
the weighted average incentive bonus and retention bonus paid to members of the executive team (excluding executive directors,
details of which are shown above) was 47.6 per cent of GRP.
The corporate objectives comprise four elements. Twenty five per cent relates to safety achievements. Twenty five per cent of
the corporate objective relates to the relative performance of the Gold Fields share price against the average performance of the
AngloGold Ashanti and Harmony share prices over the year in question. The remaining corporate objectives, as measured against
the operational plan approved by the Board, relate to notional cash expenditure per ounce produced (25 per cent) and total gold
produced (25 per cent).
Operational objectives are measured against the operational plans approved by the Board and cover safety, production, costs
and progress in developing long-term ore reserves. Personal objectives are developed each year for each executive based on key
performance areas and are approved at the beginning of each year by the Remuneration Committee. Performance against these
objectives is reviewed by the Remuneration Committee at the end of the year.
The fees for non-executive directors are dealt with by a special non-executive Remuneration Committee comprising independent
external parties. Proposed changes to the fees payable to non-executive directors, together with proposed awards under the Gold
Fields Limited 2005 Non-executive Share Plan (details of the plan are provided on page 114), are set out in the notice of the annual
general meeting which accompanies this report.
Directors’ and officers’ disclosure of interests in contracts
During the year under review, no contracts were entered into in which directors and officers of the company had an interest and
which significantly affected the business of the Group.
Related party information is disclosed on pages 196 to 198.
120
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
DIRECTORS’ REPORT continued
FINANCIAL AFFAIRS
Dividend policy
The company’s dividend policy is to declare an interim and final dividend in respect of each financial year, based on 50 per cent of
the earnings for the year before taking account of investment opportunities and after excluding impairments. Earnings are adjusted
to exclude unrealised gains and losses on financial instruments and foreign debt, but adjusted to include cash payments and
receipts in relation to such underlying financial instruments.
Interim dividend
On Thursday, 28 January 2009, the company declared an interim cash dividend of 30 SA cents per ordinary share (2008: 65 SA cents)
to shareholders reflected in the register of the company on Friday, 13 February 2009. The dividend was declared in the currency
of the Republic of South Africa.
This dividend was paid on Monday, 23 February 2009.
Final dividend
On Thursday, 5 August 2009, the company declared a final cash dividend of 80 SA cents per ordinary share (2008: 120 SA cents)
to shareholders reflected in the register of the company on Friday, 21 August 2009. The dividend was declared in the currency of
the Republic of South Africa.
This dividend was paid on Monday, 31 August 2009.
The dividend resulted in a total dividend of 110 SA cents per share for the year, with the final dividend being accounted for in F2010.
Borrowing powers
In terms of the provisions of article 12.1 of the articles of association, the borrowing powers of the company are unlimited. As at
30 June 2009, the company’s borrowings totalled R8,895.5 million (US$1,103.7 million) (2008: R6,998.1 million (US$874.7 million)).
Fixed assets
Capital expenditure
Capital expenditure for the year amounted to R7,649 million compared to R9,014 million in F2008. Estimated capital expenditure
for the 2010 financial year is R8,500 million and is intended to be funded from internal sources and, to the extent necessary,
borrowings.
Investments
Acquisitions
Investment purchases decreased from R978 million in F2008 to R99 million in F2009.
The major net investment purchases comprising the R99 million spent in F2009 were:
(cid:115)(cid:0)(cid:0)(cid:50)(cid:25)(cid:21)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:69)(cid:68)(cid:0)(cid:73)(cid:78)(cid:0)(cid:51)(cid:73)(cid:78)(cid:79)(cid:0)(cid:39)(cid:79)(cid:76)(cid:68)(cid:0)(cid:44)(cid:73)(cid:77)(cid:73)(cid:84)(cid:69)(cid:68)(cid:0)(cid:65)(cid:83)(cid:0)(cid:80)(cid:65)(cid:82)(cid:84)(cid:0)(cid:79)(cid:70)(cid:0)(cid:65)(cid:0)(cid:82)(cid:73)(cid:71)(cid:72)(cid:84)(cid:83)(cid:0)(cid:79)(cid:70)(cid:70)(cid:69)(cid:82)(cid:0)(cid:77)(cid:65)(cid:73)(cid:78)(cid:84)(cid:65)(cid:73)(cid:78)(cid:73)(cid:78)(cid:71)(cid:0)(cid:79)(cid:85)(cid:82)(cid:0)(cid:72)(cid:79)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:0)(cid:65)(cid:84)(cid:0)(cid:17)(cid:25)(cid:14)(cid:25)(cid:0)(cid:80)(cid:69)(cid:82)(cid:0)(cid:67)(cid:69)(cid:78)(cid:84)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0)(cid:0)(cid:0)(cid:50)(cid:17)(cid:23)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:69)(cid:68)(cid:0)(cid:73)(cid:78)(cid:0)(cid:39)(cid:76)(cid:69)(cid:78)(cid:67)(cid:65)(cid:82)(cid:0)(cid:45)(cid:73)(cid:78)(cid:73)(cid:78)(cid:71)(cid:0)(cid:48)(cid:76)(cid:67)(cid:0)(cid:8)(cid:39)(cid:76)(cid:69)(cid:78)(cid:67)(cid:65)(cid:82)(cid:9)(cid:0)(cid:82)(cid:69)(cid:83)(cid:85)(cid:76)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0)(cid:73)(cid:78)(cid:0)(cid:65)(cid:0)(cid:72)(cid:79)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:0)(cid:79)(cid:70)(cid:0)(cid:25)(cid:14)(cid:17)(cid:0)(cid:80)(cid:69)(cid:82)(cid:0)(cid:67)(cid:69)(cid:78)(cid:84)(cid:0)(cid:65)(cid:83)(cid:0)(cid:65)(cid:84)(cid:0)(cid:19)(cid:16)(cid:0)(cid:42)(cid:85)(cid:78)(cid:69)(cid:0)(cid:18)(cid:16)(cid:16)(cid:25)(cid:14)(cid:0)(cid:51)(cid:85)(cid:66)(cid:83)(cid:69)(cid:81)(cid:85)(cid:69)(cid:78)(cid:84)(cid:0)(cid:84)(cid:79)(cid:0)(cid:89)(cid:69)(cid:65)(cid:82)(cid:0)
end the investment in Glencar was increased to 29.9 per cent. Please refer to note 33 of the financial statements on page 177.
The major net investment purchases comprising the R978 million spent in F2008 were:
(cid:115)(cid:0)(cid:0)(cid:50)(cid:23)(cid:25)(cid:21)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:69)(cid:68)(cid:0)(cid:73)(cid:78)(cid:0)(cid:51)(cid:73)(cid:78)(cid:79)(cid:0)(cid:39)(cid:79)(cid:76)(cid:68)(cid:0)(cid:44)(cid:73)(cid:77)(cid:73)(cid:84)(cid:69)(cid:68)(cid:0)(cid:66)(cid:82)(cid:73)(cid:78)(cid:71)(cid:73)(cid:78)(cid:71)(cid:0)(cid:79)(cid:85)(cid:82)(cid:0)(cid:72)(cid:79)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:0)(cid:84)(cid:79)(cid:0)(cid:17)(cid:25)(cid:14)(cid:25)(cid:0)(cid:80)(cid:69)(cid:82)(cid:0)(cid:67)(cid:69)(cid:78)(cid:84)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:50)(cid:24)(cid:21)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:78)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:67)(cid:79)(cid:78)(cid:86)(cid:69)(cid:82)(cid:83)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:79)(cid:80)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:0)(cid:72)(cid:69)(cid:76)(cid:68)(cid:0)(cid:73)(cid:78)(cid:0)(cid:45)(cid:86)(cid:69)(cid:76)(cid:65)(cid:80)(cid:72)(cid:65)(cid:78)(cid:68)(cid:65)(cid:0)(cid:50)(cid:69)(cid:83)(cid:79)(cid:85)(cid:82)(cid:67)(cid:69)(cid:83)(cid:0)(cid:44)(cid:73)(cid:77)(cid:73)(cid:84)(cid:69)(cid:68)(cid:0)(cid:84)(cid:79)(cid:0)(cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:50)(cid:22)(cid:23)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:69)(cid:68)(cid:0)(cid:73)(cid:78)(cid:0)(cid:35)(cid:79)(cid:78)(cid:81)(cid:85)(cid:69)(cid:83)(cid:84)(cid:0)(cid:45)(cid:73)(cid:78)(cid:73)(cid:78)(cid:71)(cid:0)(cid:44)(cid:73)(cid:77)(cid:73)(cid:84)(cid:69)(cid:68)(cid:0)(cid:66)(cid:82)(cid:73)(cid:78)(cid:71)(cid:73)(cid:78)(cid:71)(cid:0)(cid:79)(cid:85)(cid:82)(cid:0)(cid:72)(cid:79)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:0)(cid:84)(cid:79)(cid:0)(cid:17)(cid:25)(cid:14)(cid:17)(cid:0)(cid:80)(cid:69)(cid:82)(cid:0)(cid:67)(cid:69)(cid:78)(cid:84)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0)(cid:0)(cid:50)(cid:19)(cid:24)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:69)(cid:68)(cid:0)(cid:73)(cid:78)(cid:0)(cid:47)(cid:82)(cid:83)(cid:85)(cid:0)(cid:45)(cid:69)(cid:84)(cid:65)(cid:76)(cid:83)(cid:0)(cid:35)(cid:79)(cid:82)(cid:80)(cid:79)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:8)(cid:80)(cid:82)(cid:69)(cid:86)(cid:73)(cid:79)(cid:85)(cid:83)(cid:76)(cid:89)(cid:0)(cid:44)(cid:69)(cid:82)(cid:79)(cid:0)(cid:39)(cid:79)(cid:76)(cid:68)(cid:0)(cid:35)(cid:79)(cid:82)(cid:80)(cid:79)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:9)(cid:0)(cid:66)(cid:82)(cid:73)(cid:78)(cid:71)(cid:73)(cid:78)(cid:71)(cid:0)(cid:79)(cid:85)(cid:82)(cid:0)(cid:72)(cid:79)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:0)(cid:84)(cid:79)(cid:0)(cid:23)(cid:14)(cid:22)(cid:0)(cid:80)(cid:69)(cid:82)(cid:0)(cid:67)(cid:69)(cid:78)(cid:84)(cid:14)
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G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
121
Disposals
Proceeds on the disposal of investments increased from R100 million in F2008 to R482 million in F2009.
The major net investment disposals comprising the R482 million in F2009 were:
(cid:115)(cid:0)(cid:0)(cid:50)(cid:18)(cid:24)(cid:18)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:83)(cid:65)(cid:76)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:41)(cid:33)(cid:45)(cid:39)(cid:79)(cid:76)(cid:68)(cid:0)(cid:35)(cid:79)(cid:82)(cid:80)(cid:79)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0)(cid:0)(cid:50)(cid:18)(cid:16)(cid:16)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:82)(cid:69)(cid:68)(cid:69)(cid:77)(cid:80)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:80)(cid:82)(cid:69)(cid:70)(cid:69)(cid:82)(cid:69)(cid:78)(cid:67)(cid:69)(cid:0)(cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83)(cid:0)(cid:72)(cid:69)(cid:76)(cid:68)(cid:0)(cid:73)(cid:78)(cid:0)(cid:65)(cid:0)(cid:87)(cid:72)(cid:79)(cid:76)(cid:76)(cid:89)(cid:0)(cid:79)(cid:87)(cid:78)(cid:69)(cid:68)(cid:0)(cid:83)(cid:85)(cid:66)(cid:83)(cid:73)(cid:68)(cid:73)(cid:65)(cid:82)(cid:89)(cid:0)(cid:79)(cid:70)(cid:0)(cid:45)(cid:86)(cid:69)(cid:76)(cid:65)(cid:0)(cid:50)(cid:69)(cid:83)(cid:79)(cid:85)(cid:82)(cid:67)(cid:69)(cid:83)(cid:0)(cid:44)(cid:73)(cid:77)(cid:73)(cid:84)(cid:69)(cid:68)(cid:14)
The major net investment disposals comprising the R100 million in F2008 were:
(cid:115)(cid:0)(cid:0)(cid:50)(cid:20)(cid:17)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:83)(cid:65)(cid:76)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:37)(cid:77)(cid:69)(cid:68)(cid:0)(cid:45)(cid:73)(cid:78)(cid:73)(cid:78)(cid:71)(cid:0)(cid:48)(cid:85)(cid:66)(cid:76)(cid:73)(cid:67)(cid:0)(cid:44)(cid:73)(cid:77)(cid:73)(cid:84)(cid:69)(cid:68)(cid:0)(cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:50)(cid:19)(cid:24)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:83)(cid:65)(cid:76)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:86)(cid:65)(cid:82)(cid:73)(cid:79)(cid:85)(cid:83)(cid:0)(cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83)(cid:0)(cid:72)(cid:69)(cid:76)(cid:68)(cid:0)(cid:66)(cid:89)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:46)(cid:69)(cid:87)(cid:0)(cid:33)(cid:70)(cid:82)(cid:73)(cid:67)(cid:65)(cid:0)(cid:45)(cid:73)(cid:78)(cid:73)(cid:78)(cid:71)(cid:0)(cid:38)(cid:85)(cid:78)(cid:68)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0)(cid:0)(cid:50)(cid:17)(cid:18)(cid:0)(cid:77)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:83)(cid:65)(cid:76)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:35)(cid:79)(cid:77)(cid:77)(cid:73)(cid:84)(cid:84)(cid:69)(cid:69)(cid:0)(cid:34)(cid:65)(cid:89)(cid:0)(cid:50)(cid:69)(cid:83)(cid:79)(cid:85)(cid:82)(cid:67)(cid:69)(cid:83)(cid:0)(cid:44)(cid:73)(cid:77)(cid:73)(cid:84)(cid:69)(cid:68)(cid:0)(cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83)(cid:14)
Significant announcements
25 August 2008
Gold Fields announced resources of 251 million ounces and reserves of 83 million.
10 September 2008
Gold Fields announced that the Arctic Platinum Project in Finland had reverted to Gold Fields after North American Palladium
Limited did not follow its rights in terms of the agreement entered into between the parties on 18 October 2005.
14 January 2009
Gold Fields announced the appointment of Paul Schmidt as Chief Financial Officer of the Group.
17 March 2009
Gold Fields and Mvelaphanda Resources Limited (Mvela Resources) successfully completed the final step of the R4.1 billion Black
Economic Empowerment transaction initiated in 2004 in which Mvela Resources took receipt through its wholly owned subsidiary
Mvelaphanda Gold (Proprietary) Limited (Mvela Gold), of its 15 per cent shareholding in GFI Mining South Africa (Proprietary)
Limited (GFIMSA), a subsidiary of Gold Fields which owns and operates the South African gold mining assets of Gold Fields (the
GFIMSA Shares). Immediately upon receipt of the GFIMSA shares, Mvela Gold exercised its right to use the GFIMSA shares to
subscribe for 50 million new ordinary shares in Gold Fields.
3 June 2009
Gold Fields announced that agreement had been reached in terms of which Gold Fields would sell its 19.9 per cent stake in Sino
Gold Mining Limited to Eldorado Gold Corporation for a total consideration of approximately US$282 million payable in Eldorado
Gold Corporation shares.
10 June 2009
Gold Fields announced the opening of its new Employee Housing Programme in the communities of Glenharvie and Blybank on the
West Rand in South Africa. The programme consists of 192 family homes which will be occupied by employees of the Driefontein
and Kloof gold mines.
26 June 2009
Gold Fields announced that it expected to beat guidance and increase production by 4 per cent to approximately 905,000 ounces
during Q4 F2009.
31 July 2009
Gold Fields announced that Beatrix Gold Mine had achieved accreditation with the International Cyanide Management Code
(ICMC). Beatrix is the fourth of Gold Fields’ nine mines to achieve Cyanide Code accreditation. The Tarkwa and Damang Gold
Mines in Ghana achieved accreditation in June and May 2008, respectively and the South Deep Gold Mine in South Africa achieved
accreditation in December 2008.
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G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
DIRECTORS’ REPORT continued
4 August 2009
Gold Fields Limited announced the appointment of Peter Turner, Executive Vice President: Head of the West Africa Region, Juan
Luis Kruger (Juancho), Executive Vice President: Head South America Region and Ben Zikmundovsky, Executive Vice President:
Head of International Capital Projects and International Technical Services to its Group Executive team.
24 August 2009
Gold Fields Limited announced that Mr Alan Richard Hill was appointed to its Board of Directors on 21 August 2009.
27 August 2009
Gold Fields Limited announced that an agreement has been executed in terms of which the royalty payable by Gold Fields’ wholly
owned Australian subsidiary, St Ives Gold Mining Company (Pty) Ltd, to Morgan Stanley Bank’s subsidiaries, has been terminated
for a consideration of A$308 million.
4 September 2009
Gold Fields Limited announced that it had disposed of its holding in Eldorado Gold Corporation. Gold Fields disposed of
27,824,654 Eldorado shares at CAD11,61 per share for a total consideration of CAD323 million (approximately US$293 million).
GOING CONCERN
The financial statements have been prepared using appropriate accounting policies, supported by reasonable judgements and
estimates. The directors have reasonable belief that the company and the Group have adequate resources to continue as a going
concern for the foreseeable future.
DEMATERIALISATION OF SHARES (STRATE)
Shareholders are reminded that as a result of the clearing and settlement of trades through STRATE, the company’s share
certificates are no longer good for delivery for trading. Dematerialisation of the company’s share certificates is a prerequisite when
dealing in the company’s shares.
PROPERTY
The register of property and mineral rights is available for inspection at the registered office of the company during normal business
hours.
OCCUPATIONAL HEALTHCARE SERVICES
As previously reported, occupational healthcare services are made available by Gold Fields to employees in South Africa 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.
ENVIRONMENTAL OBLIGATIONS
The Group has made provision in the financial statements for environmental rehabilitation costs amounting to R2,268 million (2008:
R2,016 million). Cash contributions of R58 million (2008: R56 million) have been paid during the year to a dedicated trust fund
created to fund these provisions with the total amounts invested at the year end amounting to R887 million (2008: R747 million).
SPECIAL RESOLUTIONS ADOPTED BY SUBSIDIARY COMPANIES
There were no special resolutions passed by subsidiary companies during the year under review that related to capital structure,
borrowing powers, the objects clause contained in the memorandum of association or any other material matter that affects the
understanding of the company and its subsidiaries save for the Gold Fields Group Services (Proprietary) Limited which amended
its main business and main object. Gold Fields Group Services was created as a separate service entity to act as administrative,
financial and technical advisors to the company with effect from 23 February 2009. Prior to this date, these services were rendered
by GFL Mining Services Limited.
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
123
LITIGATION
The directors of the company are not aware of any legal or arbitration proceedings, including proceedings that are pending or
threatened, that may have or have had in the recent past, being at least the previous 12 months, a material effect on the Group’s
financial position, save for the summons received on 21 August 2008 by Gold Fields Operations Limited (formerly known as Western
Areas Limited) (Gold Fields Operations), a subsidiary of the company. The summons was received from Randgold & Exploration
Company Limited (Randgold) and African Strategic Investments (Holdings) Limited. The summons claims that during the period
that Gold Fields Operations was under the control of Mr Brett Kebble, Mr Roger Kebble and others, Gold Fields Operations was
allegedly part of a scam whereby JCI Limited unlawfully disposed of shares owned by Randgold in Randgold Resources Limited
(Resources) and Afrikander Lease Limited, now Uranium One.
Gold Fields Operations’ preliminary assessment was that it had strong defences to these claims and accordingly, Gold Fields
Operations’ attorneys were instructed to vigorously defend the claims. Werksmans Attorneys have been so instructed. Much of the
preparatory work is still being undertaken and pleadings have not yet closed.
The claims have been computed in various ways. The highest claims have been computed on the basis of the highest prices of
Resources and Uranium One between the dates of the alleged thefts and March 2008 (approximately R11 billion). The alternative
claims have been computed on the basis of the actual amounts allegedly received by Gold Fields Operations to fund its operations
(approximately R519 million).
It should be noted that claims lie only against Gold Fields Operations, whose only interest is 50 per cent stake in the South Deep
Mine.
ADMINISTRATION
The office of company secretary of Gold Fields Limited was held by Mr C Farrel for the year under review. With effect from
23 February 2009, the administrative, financial and technical advisory services are being provided by Gold Fields Group Services
(Proprietary) Limited to the company, as per above.
Computershare Investor Services (Pty) Limited is the company’s South African transfer secretaries and Capita Registrars is the
United Kingdom registrars of the company.
AUDITORS
PricewaterhouseCoopers Inc will continue in office in accordance with section 270(2) of the Companies Act.
SUBSIDIARY COMPANIES
Details of major subsidiary companies in which the company has a direct or indirect interest are set out on pages 210 and 211.
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G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These
policies have been consistently applied to all the years presented, except for the adoption of new and revised standards and
interpretations.
1. BASIS OF PREPARATION
The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting
Standards (IFRS) as adopted by the International Accounting Standards Board, and the South African Companies Act. The
consolidated financial statements have been prepared under the historical cost convention, as modified by available-for-sale
financial assets, and financial assets and liabilities (including derivative instruments), which have been brought to account at
fair value through profit or loss or through the fair value adjustment reserve under shareholders’ equity.
Standards, interpretations and amendments to published standards effective in F2009
During the financial year, the following amendments to standards were adopted by the Group:
IAS 39 and IFRS 7
Amendments to IAS 39 Financial instruments: recognition and measurement and IFRS 7 Financial
instruments: disclosures – reclassification of financial assets
The amendments introduce the possibility of reclassifications of certain financial assets previously classified as ‘held for
trading’ or ‘available for sale’ to another category under limited circumstances. Various disclosures are required where a
reclassification has been made. Derivatives and assets designated as ‘at fair value through profit or loss’ under the fair value
option are not eligible for this reclassification. These amendments do not have any impact on the Group’s financial position
or performance.
Standards, interpretations and amendments to published standards which are not yet effective
Certain new standards, amendments and interpretations to existing standards have been published that apply to the Group’s
accounting periods beginning on 1 July 2009 or later periods but have not been early adopted by the Group. Management
is currently reviewing the impact of these standards on the Group.
These standards, amendments and interpretations are:
Standard(s)
Amendment(s)
Interpretation(s)
IFRIC 16 Hedges of
a net investment in a
foreign operation
IFRS 2 Amendment
to IFRS 2 Share-
based payments:
vesting conditions
and cancellations
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Salient features of the change(s)
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Provides guidance on:
(cid:115)(cid:0)(cid:0)(cid:0)(cid:41)(cid:68)(cid:69)(cid:78)(cid:84)(cid:73)(cid:70)(cid:89)(cid:73)(cid:78)(cid:71)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:70)(cid:79)(cid:82)(cid:69)(cid:73)(cid:71)(cid:78)(cid:0)(cid:67)(cid:85)(cid:82)(cid:82)(cid:69)(cid:78)(cid:67)(cid:89)(cid:0)(cid:82)(cid:73)(cid:83)(cid:75)(cid:83)(cid:0)(cid:84)(cid:72)(cid:65)(cid:84)(cid:0)(cid:81)(cid:85)(cid:65)(cid:76)(cid:73)(cid:70)(cid:89)(cid:0)(cid:65)(cid:83)(cid:0)(cid:65)(cid:0)(cid:72)(cid:69)(cid:68)(cid:71)(cid:69)(cid:68)(cid:0)(cid:82)(cid:73)(cid:83)(cid:75)(cid:0)(cid:8)(cid:73)(cid:78)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:72)(cid:69)(cid:68)(cid:71)(cid:69)(cid:0)
of a net investment in a foreign operation).
(cid:115)(cid:0)(cid:0)(cid:0)(cid:55)(cid:72)(cid:69)(cid:82)(cid:69)(cid:12)(cid:0)(cid:87)(cid:73)(cid:84)(cid:72)(cid:73)(cid:78)(cid:0)(cid:65)(cid:0)(cid:71)(cid:82)(cid:79)(cid:85)(cid:80)(cid:12)(cid:0)(cid:72)(cid:69)(cid:68)(cid:71)(cid:73)(cid:78)(cid:71)(cid:0)(cid:73)(cid:78)(cid:83)(cid:84)(cid:82)(cid:85)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83)(cid:0)(cid:84)(cid:72)(cid:65)(cid:84)(cid:0)(cid:65)(cid:82)(cid:69)(cid:0)(cid:72)(cid:69)(cid:68)(cid:71)(cid:69)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:65)(cid:0)(cid:78)(cid:69)(cid:84)(cid:0)(cid:73)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)
in a foreign operation can be held to qualify for hedge accounting.
(cid:115)(cid:0)(cid:0)(cid:0)(cid:40)(cid:79)(cid:87)(cid:0)(cid:65)(cid:78)(cid:0)(cid:69)(cid:78)(cid:84)(cid:73)(cid:84)(cid:89)(cid:0)(cid:83)(cid:72)(cid:79)(cid:85)(cid:76)(cid:68)(cid:0)(cid:68)(cid:69)(cid:84)(cid:69)(cid:82)(cid:77)(cid:73)(cid:78)(cid:69)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:65)(cid:77)(cid:79)(cid:85)(cid:78)(cid:84)(cid:83)(cid:0)(cid:84)(cid:79)(cid:0)(cid:66)(cid:69)(cid:0)(cid:82)(cid:69)(cid:67)(cid:76)(cid:65)(cid:83)(cid:83)(cid:73)(cid:70)(cid:73)(cid:69)(cid:68)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:69)(cid:81)(cid:85)(cid:73)(cid:84)(cid:89)(cid:0)(cid:84)(cid:79)(cid:0)
profit or loss for both the hedging instrument and the hedged item.
(cid:115)(cid:0)(cid:0)(cid:0)(cid:35)(cid:76)(cid:65)(cid:82)(cid:73)(cid:70)(cid:73)(cid:69)(cid:83)(cid:0) (cid:84)(cid:72)(cid:65)(cid:84)(cid:0) (cid:86)(cid:69)(cid:83)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0) (cid:67)(cid:79)(cid:78)(cid:68)(cid:73)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:0) (cid:65)(cid:82)(cid:69)(cid:0) (cid:83)(cid:69)(cid:82)(cid:86)(cid:73)(cid:67)(cid:69)(cid:0) (cid:67)(cid:79)(cid:78)(cid:68)(cid:73)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:0) (cid:65)(cid:78)(cid:68)(cid:0) (cid:80)(cid:69)(cid:82)(cid:70)(cid:79)(cid:82)(cid:77)(cid:65)(cid:78)(cid:67)(cid:69)(cid:0)
conditions only. Other features of a share-based payment are not vesting
conditions.
(cid:115)(cid:0)(cid:0)(cid:0)(cid:33)(cid:76)(cid:76)(cid:0)(cid:67)(cid:65)(cid:78)(cid:67)(cid:69)(cid:76)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:12)(cid:0)(cid:87)(cid:72)(cid:69)(cid:84)(cid:72)(cid:69)(cid:82)(cid:0)(cid:66)(cid:89)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:69)(cid:78)(cid:84)(cid:73)(cid:84)(cid:89)(cid:0)(cid:79)(cid:82)(cid:0)(cid:66)(cid:89)(cid:0)(cid:79)(cid:84)(cid:72)(cid:69)(cid:82)(cid:0)(cid:80)(cid:65)(cid:82)(cid:84)(cid:73)(cid:69)(cid:83)(cid:12)(cid:0)(cid:83)(cid:72)(cid:79)(cid:85)(cid:76)(cid:68)(cid:0)(cid:82)(cid:69)(cid:67)(cid:69)(cid:73)(cid:86)(cid:69)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)
same accounting treatment.
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G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
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Salient features of the change(s)
(cid:115)(cid:0)(cid:0)(cid:0)(cid:33)(cid:78)(cid:0)(cid:69)(cid:78)(cid:84)(cid:73)(cid:84)(cid:89)(cid:0)(cid:77)(cid:85)(cid:83)(cid:84)(cid:0)(cid:82)(cid:69)(cid:80)(cid:79)(cid:82)(cid:84)(cid:0)(cid:70)(cid:73)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:68)(cid:69)(cid:83)(cid:67)(cid:82)(cid:73)(cid:80)(cid:84)(cid:73)(cid:86)(cid:69)(cid:0)(cid:73)(cid:78)(cid:70)(cid:79)(cid:82)(cid:77)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:65)(cid:66)(cid:79)(cid:85)(cid:84)(cid:0)(cid:73)(cid:84)(cid:83)(cid:0)(cid:82)(cid:69)(cid:80)(cid:79)(cid:82)(cid:84)(cid:65)(cid:66)(cid:76)(cid:69)(cid:0)
segments.
(cid:115)(cid:0)(cid:0)(cid:0)(cid:38)(cid:73)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76)(cid:0) (cid:73)(cid:78)(cid:70)(cid:79)(cid:82)(cid:77)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0) (cid:84)(cid:79)(cid:0) (cid:66)(cid:69)(cid:0) (cid:82)(cid:69)(cid:80)(cid:79)(cid:82)(cid:84)(cid:69)(cid:68)(cid:0) (cid:79)(cid:78)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:83)(cid:65)(cid:77)(cid:69)(cid:0) (cid:66)(cid:65)(cid:83)(cid:73)(cid:83)(cid:0) (cid:65)(cid:83)(cid:0) (cid:73)(cid:83)(cid:0) (cid:85)(cid:83)(cid:69)(cid:68)(cid:0) (cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:78)(cid:65)(cid:76)(cid:76)(cid:89)(cid:0)
for evaluating operating segment performance and deciding how to allocate
resources to operating segments.
(cid:115)(cid:0)(cid:0)(cid:0)(cid:33)(cid:68)(cid:68)(cid:73)(cid:84)(cid:73)(cid:79)(cid:78)(cid:65)(cid:76)(cid:0)(cid:68)(cid:73)(cid:83)(cid:67)(cid:76)(cid:79)(cid:83)(cid:85)(cid:82)(cid:69)(cid:0)(cid:82)(cid:69)(cid:81)(cid:85)(cid:73)(cid:82)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83)(cid:0)(cid:73)(cid:78)(cid:67)(cid:76)(cid:85)(cid:68)(cid:69)(cid:0)(cid:70)(cid:65)(cid:67)(cid:84)(cid:79)(cid:82)(cid:83)(cid:0)(cid:85)(cid:83)(cid:69)(cid:68)(cid:0)(cid:84)(cid:79)(cid:0)(cid:73)(cid:68)(cid:69)(cid:78)(cid:84)(cid:73)(cid:70)(cid:89)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:69)(cid:78)(cid:84)(cid:73)(cid:84)(cid:89)(cid:7)(cid:83)(cid:0)
operating segments and the types of products and services from which each
reportable segment derives its revenue.
(cid:115)(cid:0)(cid:0)(cid:0)(cid:33)(cid:70)(cid:70)(cid:69)(cid:67)(cid:84)(cid:83)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:80)(cid:82)(cid:69)(cid:83)(cid:69)(cid:78)(cid:84)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0) (cid:79)(cid:70)(cid:0) (cid:79)(cid:87)(cid:78)(cid:69)(cid:82)(cid:0) (cid:67)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69)(cid:83)(cid:0) (cid:73)(cid:78)(cid:0) (cid:69)(cid:81)(cid:85)(cid:73)(cid:84)(cid:89)(cid:0) (cid:65)(cid:78)(cid:68)(cid:0) (cid:79)(cid:70)(cid:0) (cid:67)(cid:79)(cid:77)(cid:80)(cid:82)(cid:69)(cid:72)(cid:69)(cid:78)(cid:83)(cid:73)(cid:86)(cid:69)(cid:0)
income.
(cid:115)(cid:0)(cid:0)(cid:0)(cid:50)(cid:69)(cid:81)(cid:85)(cid:73)(cid:82)(cid:69)(cid:83)(cid:0)(cid:80)(cid:82)(cid:69)(cid:83)(cid:69)(cid:78)(cid:84)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:12)(cid:0)(cid:73)(cid:78)(cid:0)(cid:65)(cid:0)(cid:83)(cid:84)(cid:65)(cid:84)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:79)(cid:70)(cid:0)(cid:67)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69)(cid:83)(cid:0)(cid:73)(cid:78)(cid:0)(cid:69)(cid:81)(cid:85)(cid:73)(cid:84)(cid:89)(cid:12)(cid:0)(cid:79)(cid:70)(cid:0)(cid:65)(cid:76)(cid:76)(cid:0)(cid:79)(cid:87)(cid:78)(cid:69)(cid:82)(cid:0)(cid:67)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69)(cid:83)(cid:0)
in equity. All non-owner changes in equity to be presented in one statement of
comprehensive income or in two statements.
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each component of other comprehensive income.
(cid:115)(cid:0)(cid:0)(cid:0)(cid:50)(cid:69)(cid:81)(cid:85)(cid:73)(cid:82)(cid:69)(cid:83)(cid:0)(cid:80)(cid:82)(cid:69)(cid:83)(cid:69)(cid:78)(cid:84)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:68)(cid:73)(cid:86)(cid:73)(cid:68)(cid:69)(cid:78)(cid:68)(cid:83)(cid:0)(cid:82)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:83)(cid:69)(cid:68)(cid:0)(cid:65)(cid:83)(cid:0)(cid:68)(cid:73)(cid:83)(cid:84)(cid:82)(cid:73)(cid:66)(cid:85)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:0)(cid:84)(cid:79)(cid:0)(cid:79)(cid:87)(cid:78)(cid:69)(cid:82)(cid:83)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)
related amounts per share in the statement of changes in equity or in the notes.
(cid:115)(cid:0)(cid:0)(cid:0)(cid:41)(cid:33)(cid:51)(cid:0)(cid:19)(cid:18)(cid:0)(cid:82)(cid:69)(cid:81)(cid:85)(cid:73)(cid:82)(cid:69)(cid:83)(cid:0)(cid:83)(cid:79)(cid:77)(cid:69)(cid:0)(cid:70)(cid:73)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76)(cid:0)(cid:73)(cid:78)(cid:83)(cid:84)(cid:82)(cid:85)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83)(cid:0)(cid:84)(cid:72)(cid:65)(cid:84)(cid:0)(cid:77)(cid:69)(cid:69)(cid:84)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:68)(cid:69)(cid:70)(cid:73)(cid:78)(cid:73)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:65)(cid:0)(cid:70)(cid:73)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76)(cid:0)
liability to be classified as equity. Puttable financial instruments and instruments
which put an obligation on the entity to deliver to another party a pro rata share
of the net assets of the entity only on liquidation are now specifically defined.
(cid:115)(cid:0)(cid:0)(cid:0)(cid:41)(cid:33)(cid:51)(cid:0)(cid:17)(cid:0)(cid:72)(cid:65)(cid:83)(cid:0)(cid:66)(cid:69)(cid:69)(cid:78)(cid:0)(cid:83)(cid:73)(cid:77)(cid:73)(cid:76)(cid:65)(cid:82)(cid:76)(cid:89)(cid:0)(cid:65)(cid:77)(cid:69)(cid:78)(cid:68)(cid:69)(cid:68)(cid:0)(cid:84)(cid:79)(cid:0)(cid:80)(cid:82)(cid:69)(cid:83)(cid:67)(cid:82)(cid:73)(cid:66)(cid:69)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:78)(cid:69)(cid:67)(cid:69)(cid:83)(cid:83)(cid:65)(cid:82)(cid:89)(cid:0)(cid:80)(cid:82)(cid:69)(cid:83)(cid:69)(cid:78)(cid:84)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)
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disclosure for such instruments.
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determine whether an agreement is within the scope of IAS 11 Construction
contracts or IAS 18 Revenue and when revenue from construction should be
recognised.
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(cid:115)(cid:0)(cid:0)(cid:0)(cid:50)(cid:69)(cid:81)(cid:85)(cid:73)(cid:82)(cid:69)(cid:83)(cid:0) (cid:69)(cid:78)(cid:84)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83)(cid:0) (cid:84)(cid:79)(cid:0) (cid:80)(cid:82)(cid:79)(cid:86)(cid:73)(cid:68)(cid:69)(cid:0) (cid:65)(cid:68)(cid:68)(cid:73)(cid:84)(cid:73)(cid:79)(cid:78)(cid:65)(cid:76)(cid:0) (cid:68)(cid:73)(cid:83)(cid:67)(cid:76)(cid:79)(cid:83)(cid:85)(cid:82)(cid:69)(cid:83)(cid:0) (cid:65)(cid:66)(cid:79)(cid:85)(cid:84)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:82)(cid:69)(cid:76)(cid:65)(cid:84)(cid:73)(cid:86)(cid:69)(cid:0) (cid:82)(cid:69)(cid:76)(cid:73)(cid:65)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0)
of fair value.
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Annual improvements project is a collection of amendments to IFRS and is the
result of conclusions reached by the Board on proposals made in its annual
improvements project.
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Standard(s)
Amendment(s)
Interpretation(s)
IFRS 8 Operating
segments
IAS 1 Presentation of
financial statements
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IAS 32 Financial
Instruments:
presentation and
IAS 1 Presentation of
financial instruments
– puttable financial
instruments and
obligations arising on
liquidation
IFRIC 15 Agreements
for the construction
of real estate
IFRS 7 Financial
instruments:
disclosures,
improving disclosures
about financial
instruments
IFRSs
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*Effective date refers to annual period beginning on or after said date.
126
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
ACCOUNTING POLICIES continued
Standard(s)
Amendment(s)
Interpretation(s)
IFRIC 9 and IAS 39
Reassessment
of embedded
derivatives and
financial instruments:
recognition and
measurement
IFRS 1 First-
time adoption of
International Financial
Reporting Standards
and IAS 27
Consolidated and
separate financial
statements: cost of
an investment in a
subsidiary, jointly
controlled entity or
associate’
IAS 27 Consolidated
and separate
financial statements
IFRS 3 Business
combinations
*
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Salient features of the change(s)
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reclassification of a financial asset out of the fair value through profit and loss
category.
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when the entity first became a party to the contract.
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hybrid financial asset in its entirety should remain in fair value through profit and
loss category.
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amount under previous accounting practice to measure the initial cost of
investments in subsidiaries, jointly controlled entities and associates in the
separate financial statements.
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with a requirement to present dividends as income in the separate financial
statements of the investor.
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(cid:115)(cid:0)(cid:0)(cid:0)(cid:52)(cid:72)(cid:69)(cid:0)(cid:69)(cid:81)(cid:85)(cid:73)(cid:84)(cid:89)(cid:0)(cid:80)(cid:82)(cid:79)(cid:86)(cid:73)(cid:68)(cid:69)(cid:82)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76)(cid:0)(cid:84)(cid:79)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:69)(cid:67)(cid:79)(cid:78)(cid:79)(cid:77)(cid:73)(cid:67)(cid:0)(cid:69)(cid:78)(cid:84)(cid:73)(cid:84)(cid:89)(cid:0)(cid:73)(cid:78)(cid:67)(cid:76)(cid:85)(cid:68)(cid:69)(cid:0)(cid:66)(cid:79)(cid:84)(cid:72)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:80)(cid:65)(cid:82)(cid:69)(cid:78)(cid:84)(cid:0)
company’s shareholders and the non-controlling interest (previously minority
interest). Non-controlling interests continue to be recognised as part of equity.
However, losses are allocated to the non-controlling interest even if a deficit
balance results.
(cid:115)(cid:0)(cid:0)(cid:0)(cid:38)(cid:79)(cid:67)(cid:85)(cid:83)(cid:69)(cid:83)(cid:0)(cid:79)(cid:78)(cid:0)(cid:82)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:83)(cid:73)(cid:78)(cid:71)(cid:0)(cid:68)(cid:73)(cid:70)(cid:70)(cid:69)(cid:82)(cid:69)(cid:78)(cid:84)(cid:0)(cid:67)(cid:79)(cid:77)(cid:80)(cid:79)(cid:78)(cid:69)(cid:78)(cid:84)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:65)(cid:0)(cid:66)(cid:85)(cid:83)(cid:73)(cid:78)(cid:69)(cid:83)(cid:83)(cid:0)(cid:67)(cid:79)(cid:77)(cid:66)(cid:73)(cid:78)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:65)(cid:84)(cid:0)(cid:70)(cid:65)(cid:73)(cid:82)(cid:0)
value rather than a cost allocation.
(cid:115)(cid:0)(cid:0)(cid:0)(cid:52)(cid:82)(cid:65)(cid:78)(cid:83)(cid:65)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:67)(cid:79)(cid:83)(cid:84)(cid:83)(cid:0)(cid:65)(cid:82)(cid:69)(cid:0)(cid:78)(cid:79)(cid:0)(cid:76)(cid:79)(cid:78)(cid:71)(cid:69)(cid:82)(cid:0)(cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76)(cid:73)(cid:83)(cid:69)(cid:68)(cid:0)(cid:65)(cid:83)(cid:0)(cid:80)(cid:65)(cid:82)(cid:84)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:67)(cid:79)(cid:83)(cid:84)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:66)(cid:85)(cid:83)(cid:73)(cid:78)(cid:69)(cid:83)(cid:83)(cid:0)
combination.
(cid:115)(cid:0)(cid:0)(cid:0)(cid:33)(cid:76)(cid:76)(cid:0) (cid:69)(cid:76)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83)(cid:0) (cid:79)(cid:70)(cid:0) (cid:67)(cid:79)(cid:78)(cid:83)(cid:73)(cid:68)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0) (cid:65)(cid:82)(cid:69)(cid:0) (cid:82)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:83)(cid:69)(cid:68)(cid:0) (cid:65)(cid:84)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:68)(cid:65)(cid:84)(cid:69)(cid:0) (cid:79)(cid:70)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:66)(cid:85)(cid:83)(cid:73)(cid:78)(cid:69)(cid:83)(cid:83)(cid:0)
combination. Subsequent changes in the value of the consideration do not
adjust goodwill, but rather impact income.
(cid:115)(cid:0)(cid:0)(cid:48)(cid:65)(cid:89)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83)(cid:0)(cid:84)(cid:72)(cid:65)(cid:84)(cid:0)(cid:65)(cid:82)(cid:69)(cid:0)(cid:78)(cid:79)(cid:84)(cid:0)(cid:67)(cid:79)(cid:78)(cid:83)(cid:73)(cid:68)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:65)(cid:70)(cid:70)(cid:69)(cid:67)(cid:84)(cid:0)(cid:73)(cid:78)(cid:67)(cid:79)(cid:77)(cid:69)(cid:14)
(cid:115)(cid:0)(cid:0)(cid:33)(cid:67)(cid:81)(cid:85)(cid:73)(cid:82)(cid:69)(cid:82)(cid:7)(cid:83)(cid:0)(cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84)(cid:0)(cid:73)(cid:78)(cid:67)(cid:76)(cid:85)(cid:68)(cid:69)(cid:83)(cid:0)(cid:80)(cid:82)(cid:69)(cid:86)(cid:73)(cid:79)(cid:85)(cid:83)(cid:0)(cid:72)(cid:79)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:83)(cid:14)
(cid:115)(cid:0)(cid:0)(cid:0)(cid:41)(cid:78)(cid:84)(cid:82)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:65)(cid:0)(cid:67)(cid:72)(cid:79)(cid:73)(cid:67)(cid:69)(cid:0)(cid:79)(cid:78)(cid:0)(cid:72)(cid:79)(cid:87)(cid:0)(cid:84)(cid:79)(cid:0)(cid:82)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:83)(cid:69)(cid:0)(cid:71)(cid:79)(cid:79)(cid:68)(cid:87)(cid:73)(cid:76)(cid:76)(cid:0)(cid:66)(cid:89)(cid:0)(cid:69)(cid:73)(cid:84)(cid:72)(cid:69)(cid:82)(cid:0)(cid:77)(cid:69)(cid:65)(cid:83)(cid:85)(cid:82)(cid:73)(cid:78)(cid:71)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)
non-controlling interest at fair value or at its share of net assets.
(cid:115)(cid:0)(cid:0)(cid:0)(cid:51)(cid:85)(cid:66)(cid:83)(cid:69)(cid:81)(cid:85)(cid:69)(cid:78)(cid:84)(cid:0) (cid:67)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69)(cid:83)(cid:0) (cid:73)(cid:78)(cid:0) (cid:68)(cid:69)(cid:70)(cid:69)(cid:82)(cid:82)(cid:69)(cid:68)(cid:0) (cid:84)(cid:65)(cid:88)(cid:69)(cid:83)(cid:0) (cid:82)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:83)(cid:69)(cid:68)(cid:0) (cid:65)(cid:83)(cid:0) (cid:80)(cid:65)(cid:82)(cid:84)(cid:0) (cid:79)(cid:70)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:66)(cid:85)(cid:83)(cid:73)(cid:78)(cid:69)(cid:83)(cid:83)(cid:0)
combination impact income rather than adjust goodwill.
(cid:115)(cid:0)(cid:0)(cid:0)(cid:33)(cid:68)(cid:68)(cid:73)(cid:84)(cid:73)(cid:79)(cid:78)(cid:65)(cid:76)(cid:0) (cid:71)(cid:85)(cid:73)(cid:68)(cid:65)(cid:78)(cid:67)(cid:69)(cid:0) (cid:80)(cid:82)(cid:79)(cid:86)(cid:73)(cid:68)(cid:69)(cid:68)(cid:0) (cid:79)(cid:78)(cid:0) (cid:82)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0) (cid:79)(cid:70)(cid:0) (cid:65)(cid:83)(cid:83)(cid:69)(cid:84)(cid:83)(cid:0) (cid:65)(cid:67)(cid:81)(cid:85)(cid:73)(cid:82)(cid:69)(cid:68)(cid:0) (cid:65)(cid:78)(cid:68)(cid:0) (cid:76)(cid:73)(cid:65)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83)(cid:0)
*Effective date refers to annual period beginning on or after said date.
assumed.
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
127
Standard(s)
Amendment(s)
Interpretation(s)
IAS 39 Amendments
to IAS 39 Financial
instruments:
recognition and
measurement
exposures qualifying
for hedge accounting
IFRIC 17 Distributions
of non-cash assets to
owners
IFRIC 18 Transfers
of assets from
customers
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Salient features of the change(s)
(cid:115)(cid:0)(cid:0)(cid:48)(cid:82)(cid:79)(cid:72)(cid:73)(cid:66)(cid:73)(cid:84)(cid:83)(cid:0)(cid:68)(cid:69)(cid:83)(cid:73)(cid:71)(cid:78)(cid:65)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0)(cid:73)(cid:78)(cid:70)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:65)(cid:83)(cid:0)(cid:65)(cid:0)(cid:72)(cid:69)(cid:68)(cid:71)(cid:69)(cid:65)(cid:66)(cid:76)(cid:69)(cid:0)(cid:67)(cid:79)(cid:77)(cid:80)(cid:79)(cid:78)(cid:69)(cid:78)(cid:84)(cid:0)(cid:79)(cid:70)(cid:0)(cid:65)(cid:0)(cid:70)(cid:73)(cid:88)(cid:69)(cid:68)(cid:0)(cid:82)(cid:65)(cid:84)(cid:69)(cid:0)(cid:68)(cid:69)(cid:66)(cid:84)(cid:14)
(cid:115)(cid:0)(cid:0)(cid:0)(cid:48)(cid:82)(cid:79)(cid:72)(cid:73)(cid:66)(cid:73)(cid:84)(cid:83)(cid:0)(cid:73)(cid:78)(cid:67)(cid:76)(cid:85)(cid:68)(cid:73)(cid:78)(cid:71)(cid:0)(cid:84)(cid:73)(cid:77)(cid:69)(cid:0)(cid:86)(cid:65)(cid:76)(cid:85)(cid:69)(cid:0)(cid:73)(cid:78)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:79)(cid:78)(cid:69)(cid:13)(cid:83)(cid:73)(cid:68)(cid:69)(cid:68)(cid:0)(cid:72)(cid:69)(cid:68)(cid:71)(cid:69)(cid:68)(cid:0)(cid:82)(cid:73)(cid:83)(cid:75)(cid:0)(cid:87)(cid:72)(cid:69)(cid:78)(cid:0)(cid:68)(cid:69)(cid:83)(cid:73)(cid:71)(cid:78)(cid:65)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0)
options as hedges.
Applies to the accounting for distributions of non-cash assets (commonly referred
to as dividends in specie) to the owners of the entity. The interpretation clarifies
that:
(cid:115)(cid:0)(cid:0)(cid:0)(cid:33)(cid:0) (cid:68)(cid:73)(cid:86)(cid:73)(cid:68)(cid:69)(cid:78)(cid:68)(cid:0) (cid:80)(cid:65)(cid:89)(cid:65)(cid:66)(cid:76)(cid:69)(cid:0) (cid:83)(cid:72)(cid:79)(cid:85)(cid:76)(cid:68)(cid:0) (cid:66)(cid:69)(cid:0) (cid:82)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:83)(cid:69)(cid:68)(cid:0) (cid:87)(cid:72)(cid:69)(cid:78)(cid:0) (cid:84)(cid:72)(cid:69)(cid:0) (cid:68)(cid:73)(cid:86)(cid:73)(cid:68)(cid:69)(cid:78)(cid:68)(cid:0) (cid:73)(cid:83)(cid:0) (cid:65)(cid:80)(cid:80)(cid:82)(cid:79)(cid:80)(cid:82)(cid:73)(cid:65)(cid:84)(cid:69)(cid:76)(cid:89)(cid:0)
authorised and is no longer at the discretion of the entity.
(cid:115)(cid:0)(cid:0)(cid:0)(cid:33)(cid:0)(cid:68)(cid:73)(cid:86)(cid:73)(cid:68)(cid:69)(cid:78)(cid:68)(cid:0)(cid:80)(cid:65)(cid:89)(cid:65)(cid:66)(cid:76)(cid:69)(cid:0)(cid:83)(cid:72)(cid:79)(cid:85)(cid:76)(cid:68)(cid:0)(cid:66)(cid:69)(cid:0)(cid:77)(cid:69)(cid:65)(cid:83)(cid:85)(cid:82)(cid:69)(cid:68)(cid:0)(cid:65)(cid:84)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:70)(cid:65)(cid:73)(cid:82)(cid:0)(cid:86)(cid:65)(cid:76)(cid:85)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:78)(cid:69)(cid:84)(cid:0)(cid:65)(cid:83)(cid:83)(cid:69)(cid:84)(cid:83)(cid:0)(cid:84)(cid:79)(cid:0)
be distributed; and
(cid:115)(cid:0)(cid:0)(cid:0)(cid:33)(cid:78)(cid:0)(cid:69)(cid:78)(cid:84)(cid:73)(cid:84)(cid:89)(cid:0)(cid:83)(cid:72)(cid:79)(cid:85)(cid:76)(cid:68)(cid:0)(cid:82)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:83)(cid:69)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:68)(cid:73)(cid:70)(cid:70)(cid:69)(cid:82)(cid:69)(cid:78)(cid:67)(cid:69)(cid:0)(cid:66)(cid:69)(cid:84)(cid:87)(cid:69)(cid:69)(cid:78)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:68)(cid:73)(cid:86)(cid:73)(cid:68)(cid:69)(cid:78)(cid:68)(cid:0)(cid:80)(cid:65)(cid:73)(cid:68)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)
carrying amount of the net assets distributed in profit or loss.
(cid:115)(cid:0)(cid:0)(cid:0)(cid:35)(cid:76)(cid:65)(cid:82)(cid:73)(cid:70)(cid:73)(cid:69)(cid:83)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:65)(cid:67)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0)(cid:84)(cid:82)(cid:69)(cid:65)(cid:84)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:70)(cid:79)(cid:82)(cid:0)(cid:84)(cid:82)(cid:65)(cid:78)(cid:83)(cid:70)(cid:69)(cid:82)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:80)(cid:82)(cid:79)(cid:80)(cid:69)(cid:82)(cid:84)(cid:89)(cid:12)(cid:0)(cid:80)(cid:76)(cid:65)(cid:78)(cid:84)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:69)(cid:81)(cid:85)(cid:73)(cid:80)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)
received from customers.
(cid:115)(cid:0)(cid:0)(cid:0)(cid:33)(cid:80)(cid:80)(cid:76)(cid:73)(cid:69)(cid:83)(cid:0)(cid:84)(cid:79)(cid:0)(cid:65)(cid:71)(cid:82)(cid:69)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83)(cid:0)(cid:87)(cid:73)(cid:84)(cid:72)(cid:0)(cid:67)(cid:85)(cid:83)(cid:84)(cid:79)(cid:77)(cid:69)(cid:82)(cid:83)(cid:0)(cid:73)(cid:78)(cid:0)(cid:87)(cid:72)(cid:73)(cid:67)(cid:72)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:69)(cid:78)(cid:84)(cid:73)(cid:84)(cid:89)(cid:0)(cid:82)(cid:69)(cid:67)(cid:69)(cid:73)(cid:86)(cid:69)(cid:83)(cid:0)(cid:67)(cid:65)(cid:83)(cid:72)(cid:0)(cid:70)(cid:82)(cid:79)(cid:77)(cid:0)(cid:65)(cid:0)
customer when that amount of cash must be used only to construct or acquire
an item of property, plant and equipment and the entity must then use the item
of property, plant and equipment either to connect the customer to a network
or to provide the customer with ongoing access to a supply of goods and
services, or to do both.
IFRS 2 Share-based
payments – group
cash-settled share-
based payment
transactions
*Effective date refers to annual period beginning on or after said date.
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(cid:115)(cid:0)(cid:0)(cid:0)(cid:35)(cid:76)(cid:65)(cid:82)(cid:73)(cid:70)(cid:73)(cid:69)(cid:83)(cid:0) (cid:84)(cid:72)(cid:65)(cid:84)(cid:0) (cid:65)(cid:78)(cid:0) (cid:69)(cid:78)(cid:84)(cid:73)(cid:84)(cid:89)(cid:0) (cid:84)(cid:72)(cid:65)(cid:84)(cid:0) (cid:82)(cid:69)(cid:67)(cid:69)(cid:73)(cid:86)(cid:69)(cid:83)(cid:0) (cid:71)(cid:79)(cid:79)(cid:68)(cid:83)(cid:0) (cid:79)(cid:82)(cid:0) (cid:83)(cid:69)(cid:82)(cid:86)(cid:73)(cid:67)(cid:69)(cid:83)(cid:0) (cid:73)(cid:78)(cid:0) (cid:65)(cid:0) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:13)(cid:66)(cid:65)(cid:83)(cid:69)(cid:68)(cid:0)
payments arrangement must account for those goods or services irrespective
of whether the transaction is settled in cash or shares.
(cid:115)(cid:0)(cid:0)(cid:0)(cid:48)(cid:82)(cid:79)(cid:86)(cid:73)(cid:68)(cid:69)(cid:83)(cid:0)(cid:71)(cid:85)(cid:73)(cid:68)(cid:65)(cid:78)(cid:67)(cid:69)(cid:0)(cid:79)(cid:78)(cid:0)(cid:72)(cid:79)(cid:87)(cid:0)(cid:84)(cid:79)(cid:0)(cid:65)(cid:67)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84)(cid:0)(cid:70)(cid:79)(cid:82)(cid:0)(cid:71)(cid:82)(cid:79)(cid:85)(cid:80)(cid:0)(cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:13)(cid:66)(cid:65)(cid:83)(cid:69)(cid:68)(cid:0)(cid:80)(cid:65)(cid:89)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:83)(cid:67)(cid:72)(cid:69)(cid:77)(cid:69)(cid:83)(cid:0)
in entities’ separate financial statements.
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Significant accounting judgements and estimates
Use of estimates: The preparation of the financial statements requires the Group’s management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The
determination of estimates requires the exercise of judgement based on various assumptions and other factors such as
historical experience, current and expected economic conditions, and in some cases actuarial techniques. Actual results
could differ from those estimates.
The more significant areas requiring the use of management estimates and assumptions relate to Mineral Reserves that
are the basis of future cash flow estimates and unit-of-production depreciation, depletion and amortisation calculations,
environmental, reclamation and closure obligations, estimates of recoverable gold and other materials in heap leach
pads,asset impairments, write-downs of inventory to net realisable value, post-retirement healthcare liabilities, the fair value
and accounting treatment of derivative financial instruments and deferred taxation.
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G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
ACCOUNTING POLICIES continued
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under the circumstances.
The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets
and liabilities within the financial year are discussed below.
Carrying value of property, plant and equipment and goodwill
All mining assets are amortised using the units-of-production method where the mine operating plan calls for production from
proved and probable Mineral Reserves.
Mobile and other equipment are depreciated over the shorter of the estimated useful life of the asset or the estimate of mine
life based on proved and probable Mineral Reserves.
The calculation of the units-of-production rate of amortisation could be impacted to the extent that actual production in the
future is different from current forecast production based on proved and probable Mineral Reserves. This would generally
result from the extent that there are significant changes in any of the factors or assumptions used in estimating Mineral
Reserves. These factors could include:
(cid:0)
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(cid:115)(cid:0)(cid:0)(cid:35)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69)(cid:83)(cid:0)(cid:73)(cid:78)(cid:0)(cid:80)(cid:82)(cid:79)(cid:86)(cid:69)(cid:68)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:80)(cid:82)(cid:79)(cid:66)(cid:65)(cid:66)(cid:76)(cid:69)(cid:0)(cid:45)(cid:73)(cid:78)(cid:69)(cid:82)(cid:65)(cid:76)(cid:0)(cid:50)(cid:69)(cid:83)(cid:69)(cid:82)(cid:86)(cid:69)(cid:83)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:36)(cid:73)(cid:70)(cid:70)(cid:69)(cid:82)(cid:69)(cid:78)(cid:67)(cid:69)(cid:83)(cid:0)(cid:66)(cid:69)(cid:84)(cid:87)(cid:69)(cid:69)(cid:78)(cid:0)(cid:65)(cid:67)(cid:84)(cid:85)(cid:65)(cid:76)(cid:0)(cid:67)(cid:79)(cid:77)(cid:77)(cid:79)(cid:68)(cid:73)(cid:84)(cid:89)(cid:0)(cid:80)(cid:82)(cid:73)(cid:67)(cid:69)(cid:83)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:67)(cid:79)(cid:77)(cid:77)(cid:79)(cid:68)(cid:73)(cid:84)(cid:89)(cid:0)(cid:80)(cid:82)(cid:73)(cid:67)(cid:69)(cid:0)(cid:65)(cid:83)(cid:83)(cid:85)(cid:77)(cid:80)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:53)(cid:78)(cid:70)(cid:79)(cid:82)(cid:69)(cid:83)(cid:69)(cid:69)(cid:78)(cid:0)(cid:79)(cid:80)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:65)(cid:76)(cid:0)(cid:73)(cid:83)(cid:83)(cid:85)(cid:69)(cid:83)(cid:0)(cid:65)(cid:84)(cid:0)(cid:77)(cid:73)(cid:78)(cid:69)(cid:0)(cid:83)(cid:73)(cid:84)(cid:69)(cid:83)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:35)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69)(cid:83)(cid:0)(cid:73)(cid:78)(cid:0)(cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76)(cid:12)(cid:0)(cid:79)(cid:80)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:78)(cid:71)(cid:12)(cid:0)(cid:77)(cid:73)(cid:78)(cid:73)(cid:78)(cid:71)(cid:12)(cid:0)(cid:80)(cid:82)(cid:79)(cid:67)(cid:69)(cid:83)(cid:83)(cid:73)(cid:78)(cid:71)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:82)(cid:69)(cid:67)(cid:76)(cid:65)(cid:77)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:67)(cid:79)(cid:83)(cid:84)(cid:83)(cid:12)(cid:0)(cid:68)(cid:73)(cid:83)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84)(cid:0)(cid:82)(cid:65)(cid:84)(cid:69)(cid:83)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:70)(cid:79)(cid:82)(cid:69)(cid:73)(cid:71)(cid:78)(cid:0)(cid:69)(cid:88)(cid:67)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69)(cid:0)(cid:82)(cid:65)(cid:84)(cid:69)(cid:83)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0)(cid:0)(cid:0)(cid:35)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69)(cid:83)(cid:0)(cid:73)(cid:78)(cid:0)(cid:45)(cid:73)(cid:78)(cid:69)(cid:82)(cid:65)(cid:76)(cid:0)(cid:50)(cid:69)(cid:83)(cid:69)(cid:82)(cid:86)(cid:69)(cid:83)(cid:0)(cid:67)(cid:79)(cid:85)(cid:76)(cid:68)(cid:0)(cid:83)(cid:73)(cid:77)(cid:73)(cid:76)(cid:65)(cid:82)(cid:76)(cid:89)(cid:0)(cid:73)(cid:77)(cid:80)(cid:65)(cid:67)(cid:84)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:85)(cid:83)(cid:69)(cid:70)(cid:85)(cid:76)(cid:0)(cid:76)(cid:73)(cid:86)(cid:69)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:65)(cid:83)(cid:83)(cid:69)(cid:84)(cid:83)(cid:0)(cid:68)(cid:69)(cid:80)(cid:82)(cid:69)(cid:67)(cid:73)(cid:65)(cid:84)(cid:69)(cid:68)(cid:0)(cid:79)(cid:78)(cid:0)(cid:65)(cid:0)(cid:83)(cid:84)(cid:82)(cid:65)(cid:73)(cid:71)(cid:72)(cid:84)(cid:13)(cid:76)(cid:73)(cid:78)(cid:69)(cid:0)(cid:66)(cid:65)(cid:83)(cid:73)(cid:83)(cid:12)(cid:0)(cid:87)(cid:72)(cid:69)(cid:82)(cid:69)(cid:0)
those lives are limited to the life of the mine.
The recoverable amounts of cash-generating units and individual assets have been determined based on the higher of
value-in-use calculations and fair value less cost to sell. These calculations require the use of estimates and assumptions. It
is reasonably possible that the gold price assumption may change which may then impact the Group estimated life of mine
determinant and may then require a material adjustment to the carrying value of property, plant and equipment.
The Group reviews and tests the carrying value of assets when events or changes in circumstances suggest that the carrying
amount may not be recoverable by comparing expected future cash flows to these carrying values. In addition, goodwill is
tested for impairment on an annual basis. Assets are grouped at the lowest level for which identifiable cash flows are largely
independent of cash flows of other assets and liabilities. If there are indications that impairment may have occurred, estimates
are prepared of expected future cash flows of each group of assets. Expected future cash flows used to determine the value
in use and fair value less costs to sell of property, plant and equipment are inherently uncertain and could materially change
over time. They are significantly affected by a number of factors including reserves and production estimates, together with
economic factors such as spot and future gold prices, discount rates, foreign currency exchange rates, estimates of costs to
produce reserves and future capital expenditure.
An individual operating mine is not a typical going-concern business because of the finite life of its reserves. The allocation
of goodwill to an individual mine will result in an eventual goodwill impairment due to the wasting nature of the mine. In
accordance with the provisions of IAS 36, the Group performs its annual impairment review of goodwill during the fourth
quarter of each year.
The carrying amount of property, plant and equipment at 30 June 2009 was R48,337 million (2008: R45,533 million). The
carrying value of goodwill at 30 June 2009 was R4,459 million (2008: R4,459 million).
Mineral Reserves estimates
Mineral Reserves are estimates of the amount of product that can be economically and legally extracted from the Group’s
properties. In order to calculate the reserves, estimates and assumptions are required about a range of geological, technical
and economic factors, including but not limited to quantities, grades, production techniques, recovery rates, production
costs, transport costs, commodity demand, commodity prices and exchange rates.
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
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Estimating the quantity and grade of the Mineral Reserves requires the size, shape and depth of ore bodies to be determined
by analysing geological data such as the logging and assaying of drill samples. This process may require complex and difficult
geological judgements and calculations to interpret the data.
The Group is required to determine and report on the Mineral Reserves in accordance with the South African Mineral
Resource Committee (SAMREC) code.
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Estimates of Mineral Reserves may change from year to year due to the change in economic assumptions used to estimate
ore reserves and due to additional geological data becoming available during the course of operations. Changes in reported
proven and probable reserves may affect the Group’s financial results and position in a number of ways, including the
following:
– Asset carrying values may be affected due to changes in estimated cash flows;
– Depreciation and amortisation charges to the income statement may change as these are calculated on the units-of-
production method, or where the useful economic lives of assets change;
– Deferred stripping costs recorded in the balance sheet or charged to the income statement may change due to changes
in stripping ratios or the units-of-production method of depreciation;
– Decommissioning site restoration and environmental provisions may change where changes in ore reserves affect
expectations about the timing or cost of these activities; and
– The carrying value of deferred tax assets may change due to changes in estimates of the likely recovery of the tax benefits.
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Pre-production
The Group assesses the stage of each mine construction project to determine when a mine moves into the production stage.
The criteria used to assess the start date are determined based on the unique nature of each mine construction project. The
Group considers various relevant criteria to assess when the mine is substantially complete, ready for its intended use and
moves into the production stage. Some of the criteria would include, but are not limited to the following:
– The level of capital expenditure compared to the construction cost estimates;
– Ability to produce metal in saleable form (within specifications); and
– Ability to sustain commercial levels of production of metal.
When a mine construction project moves into the production stage, the capitalisation of certain mine construction costs ceases
and costs are expensed, except for capitalisable costs related to mining asset additions or improvements, underground mine
development or ore reserve development.
Income taxes
The Group is subject to income taxes in numerous jurisdictions. Significant judgement is required in determining the provision
for income taxes due to the complexity of legislation. There are many transactions and calculations for which the ultimate tax
determination is uncertain during the ordinary course of business. The Group recognises liabilities for anticipated tax audit
issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different
from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the
period in which such determination is made.
The Group recognises the net future tax benefit related to deferred income tax assets to the extent that it is probable that the
deductible temporary differences will reverse in the foreseeable future. Assessing the recoverability of deferred income tax
assets requires the Group to make significant estimates related to expectations of future taxable income. Estimates of future
taxable income are based on forecast cash flows from operations and the application of existing tax laws in each jurisdiction.
To the extent that future cash flows and taxable income differ significantly from estimates, the ability of the Group to realise
the net deferred tax assets recorded at the balance sheet date could be impacted.
Additionally, future changes in tax laws in the jurisdictions in which the Group operates could limit the ability of the Group to
obtain tax deductions in future periods.
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G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
ACCOUNTING POLICIES continued
Carrying values at 30 June 2009:
Deferred taxation liability: R6,129 million (2008: R5,422 million)
Taxation liability: R792 million (2008: R985 million)
Provision for environmental rehabilitation costs
The Group’s mining and exploration activities are subject to various laws and regulations governing the protection of the
environment. The Group recognises management’s best estimate for asset retirement obligations in the period in which they
are incurred. Actual costs incurred in future periods could differ materially from the estimates. Additionally, future changes
to environmental laws and regulations, life of mine estimates and discount rates could affect the carrying amount of this
provision.
The carrying amounts of the rehabilitation obligations at 30 June 2009 were R2,268 million (2008: R2,016 million).
Stockpiles, gold in process and product inventories
Costs that are incurred in or benefit the productive process are accumulated as stockpiles, gold in process, ore on leach pads
and product inventories. Net realisable value tests are performed at least annually and represent the estimated future sales
price of the product based on prevailing spot metals prices at the reporting date, less estimated costs to complete production
and bring the product to sale.
Stockpiles are measured by estimating the number of tons added and removed from the stockpile, the number of contained
gold ounces based on assay data, and the estimated recovery percentage based on the expected processing method.
Stockpile tonnages are verified by periodic surveys.
The carrying amount of inventories at 30 June 2009 was R2,148 million (2008: R1,818 million).
Share-based payments
The Group issues equity-settled share-based payments to certain employees and non-executive directors. These instruments
are measured at fair value at grant date, using the Black-Scholes or Monte Carlo simulation valuation models, which require
assumptions regarding the estimated term of the option, share price volatility and expected dividend yield. While Gold Fields’
management believes that these assumptions are appropriate, the use of different assumptions could have a material impact
on the fair value of the option grant and the related recognition of share-based compensation expense in the consolidated
income statement. Gold Fields’ options have characteristics significantly different from those of traded options and therefore
fair values may also differ.
The income statement charge for 2009 was R303 million (2008: R151 million).
Financial instruments
The estimated fair value of financial instruments is determined at discrete points in time based on the relevant market
information. The fair value is calculated with reference to market rates using industry valuation techniques and appropriate
models. The carrying values of derivative financial instruments at 30 June 2009 was a liability of R14 million (2008: an asset
of R56 million).
Contingencies
Contingencies can be either possible assets or possible liabilities arising from past events which, by their nature, will only be
resolved when one or more future events not wholly within the control of the Group occur or fail to occur. The assessment of
such contingencies inherently involves the exercise of significant judgement and estimates of the outcome of future events.
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2. CONSOLIDATION
2.1 Subsidiaries
Subsidiaries are all entities (including special purpose entities) over which the Group has the power to govern the
financial and operating policies generally accompanying a shareholding of more than one half of the voting rights.
The Group financial statements consolidate the activities, assets and liabilities of the company and its subsidiaries.
Operating results of subsidiaries acquired or disposed of are included in the Group statements from the effective dates
on which control is obtained or excluded from such statements as from the date on which control ceases.
The purchase method of accounting is used to account for the acquisition of subsidiaries by the Group.
The cost of an acquisition is measured as the fair value of assets given up, shares issued or liabilities undertaken at the
date of exchange plus costs directly attributable to the acquisition.
Any excess of the cost of acquisition over the Group’s interest in the net fair value of the identifiable assets, liabilities
and contingent liabilities of subsidiaries at the date of acquisition is recorded as goodwill. Goodwill is stated at cost and
is not amortised, but is tested for impairment on an annual basis. Any excess of acquirer’s interest in the net fair value
of acquiree’s identifiable assets, liabilities and contingent liabilities over cost is immediately accounted for in earnings.
Inter-company transactions, balances and unrealised gains and losses between Group companies are eliminated,
unless such losses cannot be recovered.
2.2 Transactions with minority interests
Transactions with minority interests are treated as transactions with equity owners of the Group. For purchases from
minority interests, the difference between the consideration paid and the relevant share of the carrying value of net
assets of the subsidiary acquired is accounted for in equity. Gains or losses on disposals to minority interests are also
recorded in equity as gains or losses on transacting with minorities.
2.3 Associates
The equity method of accounting is used for an investment over which the Group exercises significant influence, but not
control, and normally owns between 20 per cent and 50 per cent of the voting equity. Associates are equity accounted
from the effective date of acquisition to the date that the Group ceases to have significant influence.
Results of associates are equity accounted using the results of their most recent audited annual financial statements or
unaudited interim financial statements. Any losses from associates are brought to account in the consolidated financial
statements until the interest in such associates is written down to zero. Thereafter, losses are accounted for only insofar
as the Group is committed to providing financial support to such associates.
The carrying value of an investment in associate represents the cost of the investment, including goodwill, a share of
the post-acquisition retained earnings and losses, any other movements in reserves and any impairment losses. The
carrying value is assessed annually for existence of indicators of impairment and if such exist, the carrying amount is
compared to the recoverable amount, being the higher of value in use or fair value less costs to sell. If an impairment in
value has occurred, it is recognised in the period in which the impairment arose.
3. FOREIGN CURRENCIES
Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary
economic environment in which the entity operates (the functional currency). The consolidated financial statements are
presented in South African rand, which is the company’s functional and presentation currency.
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G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
ACCOUNTING POLICIES continued
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions, and from the translation
of monetary assets and liabilities denominated in foreign currencies, are recognised in the income statement. Translation
differences on available-for-sale equities are included in the revaluation reserve in equity.
3.1 Foreign operations
The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary
economy) that have a functional currency different from the presentation currency are translated into the presentation
currency as follows:
Assets and liabilities are translated at the exchange rate ruling at the balance sheet date. Equity items are translated at
historical rates. Income statement items are translated at the average exchange rate for the year. Exchange differences
on translation are accounted for in shareholders’ equity. These differences will be recognised in earnings upon
realisation of the underlying operation.
On consolidation, exchange differences arising from the translation of the net investment in foreign operations
(i.e. the reporting entity’s interest in the net assets of that operation), and of borrowings and other currency instruments
designated as hedges of such investments, are taken to shareholders’ equity. When a foreign operation is sold,
exchange differences that were recorded in equity are recognised in the income statement as part of the gain or loss
on disposal.
Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities
of the foreign operation and are translated at each reporting date at the closing rate.
4. PROPERTY, PLANT AND EQUIPMENT
4.1 Mine development and infrastructure
Mining assets, including mine development and infrastructure costs and mine plant facilities, are recorded at cost less
accumulated depreciation and accumulated impairment losses.
Expenditure incurred to evaluate and develop new ore bodies, to define mineralisation in existing ore bodies, to establish
or expand productive capacity, is capitalised until commercial levels of production are achieved, at which times the
costs are amortised as set out below.
Development of ore bodies includes the development of shaft systems and waste rock removal that allows access
to reserves that are economically recoverable in the future. Subsequent to this, costs are capitalised if the criteria for
recognition as an asset are met. Access to individual ore bodies exploited by the Group is limited to the time span of
the Group’s respective mining leases.
4.2 Borrowing costs
Borrowing costs incurred in respect of assets requiring a substantial period of time to prepare for their intended future
use are capitalised to the date that the assets are substantially completed.
4.3 Mineral and surface rights
Mineral and surface rights are recorded at cost less accumulated amortisation and accumulated impairment losses.
When there is little likelihood of a mineral right being exploited, or the fair value of mineral rights have diminished below
cost, a write-down is effected against income in the period that such determination is made.
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4.4 Land
Land is shown at cost and is not depreciated.
4.5 Other assets
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Non-mining assets are recorded at cost less accumulated depreciation and accumulated impairment losses. These
assets include the assets of the mining operations not included in mine development and infrastructure, borrowing
costs, mineral and surface rights and land and all the assets of the non-mining operations.
4.6 Amortisation and depreciation of mining assets
Amortisation and depreciation is determined to give a fair and systematic charge in the income statement taking into
account the nature of a particular ore body and the method of mining that ore body. To achieve this, the following
calculation methods are used:
(cid:115)(cid:0)(cid:0)(cid:0)(cid:45)(cid:73)(cid:78)(cid:73)(cid:78)(cid:71)(cid:0)(cid:65)(cid:83)(cid:83)(cid:69)(cid:84)(cid:83)(cid:12)(cid:0)(cid:73)(cid:78)(cid:67)(cid:76)(cid:85)(cid:68)(cid:73)(cid:78)(cid:71)(cid:0)(cid:77)(cid:73)(cid:78)(cid:69)(cid:0)(cid:68)(cid:69)(cid:86)(cid:69)(cid:76)(cid:79)(cid:80)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:73)(cid:78)(cid:70)(cid:82)(cid:65)(cid:83)(cid:84)(cid:82)(cid:85)(cid:67)(cid:84)(cid:85)(cid:82)(cid:69)(cid:0)(cid:67)(cid:79)(cid:83)(cid:84)(cid:83)(cid:12)(cid:0)(cid:77)(cid:73)(cid:78)(cid:69)(cid:0)(cid:80)(cid:76)(cid:65)(cid:78)(cid:84)(cid:0)(cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:69)(cid:86)(cid:65)(cid:76)(cid:85)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:67)(cid:79)(cid:83)(cid:84)(cid:83)(cid:12)(cid:0)(cid:65)(cid:82)(cid:69)(cid:0)
amortised over the life of the mine using the units-of-production method, based on estimated proved and probable
ore reserves above infrastructure;
(cid:115)(cid:0)(cid:0)(cid:0)(cid:55)(cid:72)(cid:69)(cid:82)(cid:69)(cid:0)(cid:73)(cid:84)(cid:0)(cid:73)(cid:83)(cid:0)(cid:65)(cid:78)(cid:84)(cid:73)(cid:67)(cid:73)(cid:80)(cid:65)(cid:84)(cid:69)(cid:68)(cid:0)(cid:84)(cid:72)(cid:65)(cid:84)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:77)(cid:73)(cid:78)(cid:69)(cid:0)(cid:76)(cid:73)(cid:70)(cid:69)(cid:0)(cid:87)(cid:73)(cid:76)(cid:76)(cid:0)(cid:83)(cid:73)(cid:71)(cid:78)(cid:73)(cid:70)(cid:73)(cid:67)(cid:65)(cid:78)(cid:84)(cid:76)(cid:89)(cid:0)(cid:69)(cid:88)(cid:67)(cid:69)(cid:69)(cid:68)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:80)(cid:82)(cid:79)(cid:86)(cid:69)(cid:68)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:80)(cid:82)(cid:79)(cid:66)(cid:65)(cid:66)(cid:76)(cid:69)(cid:0)(cid:82)(cid:69)(cid:83)(cid:69)(cid:82)(cid:86)(cid:69)(cid:83)(cid:12)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:77)(cid:73)(cid:78)(cid:69)(cid:0)(cid:76)(cid:73)(cid:70)(cid:69)(cid:0)(cid:73)(cid:83)(cid:0)(cid:69)(cid:83)(cid:84)(cid:73)(cid:77)(cid:65)(cid:84)(cid:69)(cid:68)(cid:0)
using a methodology that takes account of current exploration information to assess the likely recoverable gold from a
particular area. Such estimates are adjusted for the level of confidence in the assessment and the probability of conversion
to reserves. The probability of conversion is based on historical experience of similar mining and geological conditions; and
(cid:115)(cid:0)(cid:0)(cid:0)(cid:33)(cid:84)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:33)(cid:85)(cid:83)(cid:84)(cid:82)(cid:65)(cid:76)(cid:73)(cid:65)(cid:78)(cid:0)(cid:79)(cid:80)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:12)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:67)(cid:65)(cid:76)(cid:67)(cid:85)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:65)(cid:77)(cid:79)(cid:82)(cid:84)(cid:73)(cid:83)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:84)(cid:65)(cid:75)(cid:69)(cid:83)(cid:0)(cid:73)(cid:78)(cid:84)(cid:79)(cid:0)(cid:65)(cid:67)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84)(cid:0)(cid:70)(cid:85)(cid:84)(cid:85)(cid:82)(cid:69)(cid:0)(cid:67)(cid:79)(cid:83)(cid:84)(cid:83)(cid:0)(cid:87)(cid:72)(cid:73)(cid:67)(cid:72)(cid:0)(cid:87)(cid:73)(cid:76)(cid:76)(cid:0)(cid:66)(cid:69)(cid:0)(cid:73)(cid:78)(cid:67)(cid:85)(cid:82)(cid:82)(cid:69)(cid:68)(cid:0)(cid:84)(cid:79)(cid:0)
(cid:0)
(cid:0)
(cid:0)
develop all the proved and probable ore reserves.
Proved and probable ore reserves reflect estimated quantities of economically recoverable reserves, which can be
recovered in future from known mineral deposits.
Certain mining plant and equipment included in mine development and infrastructure is depreciated on a straight-line
basis over their estimated useful lives.
4.7 Depreciation of non-mining assets
Non-mining assets are recorded at cost and depreciated on a straight-line basis over their current expected useful lives
to their residual values as follows:
(cid:0)
(cid:0)
(cid:0)
(cid:115)(cid:0)(cid:0)(cid:0)(cid:54)(cid:69)(cid:72)(cid:73)(cid:67)(cid:76)(cid:69)(cid:83)(cid:12)(cid:0)(cid:18)(cid:16)(cid:0)(cid:80)(cid:69)(cid:82)(cid:0)(cid:67)(cid:69)(cid:78)(cid:84)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:0)(cid:35)(cid:79)(cid:77)(cid:80)(cid:85)(cid:84)(cid:69)(cid:82)(cid:83)(cid:12)(cid:0)(cid:19)(cid:19)(cid:14)(cid:19)(cid:0)(cid:80)(cid:69)(cid:82)(cid:0)(cid:67)(cid:69)(cid:78)(cid:84)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0)(cid:0)(cid:0)(cid:38)(cid:85)(cid:82)(cid:78)(cid:73)(cid:84)(cid:85)(cid:82)(cid:69)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:69)(cid:81)(cid:85)(cid:73)(cid:80)(cid:77)(cid:69)(cid:78)(cid:84)(cid:12)(cid:0)(cid:17)(cid:16)(cid:0)(cid:80)(cid:69)(cid:82)(cid:0)(cid:67)(cid:69)(cid:78)(cid:84)(cid:14)
The assets’ useful lives and residual values are reassessed at each reporting date and adjusted if appropriate.
4.8 Mining exploration
Expenditure on advances to companies solely for exploration activities, prior to evaluation, is charged against income
until the viability of the mining venture has been proven. Expenditure incurred on exploration “farm-in” projects is written
off until an ownership interest has vested. Exploration expenditure to define mineralisation at existing ore bodies is
considered mine development costs and is capitalised until commercial levels of production are achieved.
Exploration activities at certain of the Group’s non-South African operations are broken down into defined areas within
the mining lease boundaries. These areas are generally defined by structural and geological continuity. Exploration
costs in these areas are capitalised to the extent that specific exploration programmes have yielded targets and/or
results that warrant further exploration in future years.
4.9
Impairment
Recoverability of the carrying value of the long-term mining assets of the Group is reviewed whenever events or changes
in circumstances indicate that such carrying value may not be recoverable. To determine whether a long-term mining
asset may be impaired, the higher of “value in use” or “fair value less costs to sell” is compared to the carrying value of
the asset.
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G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
ACCOUNTING POLICIES continued
A cash-generating unit is defined by the Group as the smallest identifiable group of assets that generates cash inflows
that are largely independent of the cash inflows from other assets or groups of assets. Generally for the Group this
represents an individual operating mine, including mines which are part of a larger mine complex. The costs attributable
to individual shafts of a mine are impaired if the shaft is closed.
Exploration targets in respect of which costs have been capitalised at certain of the Group’s international operations
are evaluated on an annual basis to ensure that these targets continue to support capitalisation of the underlying costs.
Those that do not are impaired.
When any infrastructure is closed down during the year, any carrying value attributable to that infrastructure is impaired.
4.10 Leases
Operating lease costs are charged against income on a straight-line basis over the period of the lease.
5. GOODWILL
Goodwill is stated at cost less accumulated impairment losses. Goodwill represents the excess of the cost of an acquisition
over the fair value of the Group’s share of the net assets of the acquired subsidiary/associate at the date of acquisition.
Goodwill on acquisition of associates is tested for impairment as part of the carrying amount of the investment in associate
whenever there is any objective evidence that the investment may be impaired. Goodwill on acquisition of a subsidiary is
assessed at each balance sheet date or whenever there are impairment indicators to establish whether there is any indication
of impairment to goodwill. A write-down is made if the carrying amount exceeds the recoverable amount. Impairment losses
on goodwill are not reversed. Gains and losses on the disposal of an entity include the carrying amount of goodwill allocated
to the entity sold.
Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those cash-
generating units or groups of cash-generating units that are expected to benefit from the business combination in which the
goodwill arose.
6. WASTE NORMALISATION OR DEFERRED STRIPPING
At certain of the Group’s non-South African open pit operations, costs related to removing waste within the ore body once
it has been exposed are accounted for in the income statement using the waste normalisation method. The objective of
this method is to provide that every ounce mined from the relevant pit bears its equal pro-rata share of the total in-pit
waste removal cost, expected to be incurred over the life of the pit. In-pit waste removal costs are expensed to the income
statement by determining the ratio of ounces mined in each period to total proved and probable reserve ounces expected to
be recovered from the pit and applying this ratio to total waste removal costs expected to be incurred over the life of the pit.
The resultant asset created by the timing difference between costs incurred and costs expensed is recorded in the balance
sheet as a current asset.
7. DEFERRED TAXATION
Deferred taxation is provided in full, using the balance sheet method, on temporary differences existing at each balance sheet
date between the tax values of assets and liabilities and their carrying amounts. Substantively enacted tax rates are used to
determine future anticipated effective tax rates which in turn are used in the determination of deferred taxation.
These temporary differences are expected to result in taxable or deductible amounts in determining taxable profits for future
periods when the carrying amount of the asset is recovered or the liability is settled. The principal temporary differences arise
from depreciation of property, plant and equipment, provisions, unutilised capital allowances and tax losses carried forward.
Deferred tax assets relating to the carry forward of unutilised tax losses and/or unutilised capital allowances are recognised
to the extent it is probable that future taxable profit will be available against which the unutilised tax losses and/or unutilised
capital allowances can be recovered. Deferred tax assets are reviewed at each reporting date and are impaired if recovery is
no longer probable.
No provision is made for any potential taxation liability on the distribution of retained earnings by Group companies.
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G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
135
8.
INVENTORIES
Inventories are valued at the lower of cost and net realisable value. Gold on hand represents production on hand after
the smelting process. Due to the different nature of the Group’s non-South African operations, gold-in-process for such
operations represents either production in broken ore form, gold in circuit or production from the time of placement on heap
leach pads.
Cost is determined on the following basis:
(cid:0)
(cid:0)
(cid:115)(cid:0)(cid:0)(cid:0)(cid:39)(cid:79)(cid:76)(cid:68)(cid:0) (cid:79)(cid:78)(cid:0) (cid:72)(cid:65)(cid:78)(cid:68)(cid:0) (cid:65)(cid:78)(cid:68)(cid:0) (cid:71)(cid:79)(cid:76)(cid:68)(cid:13)(cid:73)(cid:78)(cid:13)(cid:80)(cid:82)(cid:79)(cid:67)(cid:69)(cid:83)(cid:83)(cid:0) (cid:73)(cid:83)(cid:0) (cid:86)(cid:65)(cid:76)(cid:85)(cid:69)(cid:68)(cid:0) (cid:85)(cid:83)(cid:73)(cid:78)(cid:71)(cid:0) (cid:87)(cid:69)(cid:73)(cid:71)(cid:72)(cid:84)(cid:69)(cid:68)(cid:0) (cid:65)(cid:86)(cid:69)(cid:82)(cid:65)(cid:71)(cid:69)(cid:0) (cid:67)(cid:79)(cid:83)(cid:84)(cid:14)(cid:0) (cid:35)(cid:79)(cid:83)(cid:84)(cid:0) (cid:73)(cid:78)(cid:67)(cid:76)(cid:85)(cid:68)(cid:69)(cid:83)(cid:0) (cid:80)(cid:82)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:12)(cid:0) (cid:65)(cid:77)(cid:79)(cid:82)(cid:84)(cid:73)(cid:83)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0) (cid:65)(cid:78)(cid:68)(cid:0)
related administration costs; and
(cid:115)(cid:0)(cid:0)(cid:35)(cid:79)(cid:78)(cid:83)(cid:85)(cid:77)(cid:65)(cid:66)(cid:76)(cid:69)(cid:0)(cid:83)(cid:84)(cid:79)(cid:82)(cid:69)(cid:83)(cid:0)(cid:65)(cid:82)(cid:69)(cid:0)(cid:86)(cid:65)(cid:76)(cid:85)(cid:69)(cid:68)(cid:0)(cid:65)(cid:84)(cid:0)(cid:87)(cid:69)(cid:73)(cid:71)(cid:72)(cid:84)(cid:69)(cid:68)(cid:0)(cid:65)(cid:86)(cid:69)(cid:82)(cid:65)(cid:71)(cid:69)(cid:0)(cid:67)(cid:79)(cid:83)(cid:84)(cid:12)(cid:0)(cid:65)(cid:70)(cid:84)(cid:69)(cid:82)(cid:0)(cid:65)(cid:80)(cid:80)(cid:82)(cid:79)(cid:80)(cid:82)(cid:73)(cid:65)(cid:84)(cid:69)(cid:0)(cid:80)(cid:82)(cid:79)(cid:86)(cid:73)(cid:83)(cid:73)(cid:79)(cid:78)(cid:0)(cid:70)(cid:79)(cid:82)(cid:0)(cid:82)(cid:69)(cid:68)(cid:85)(cid:78)(cid:68)(cid:65)(cid:78)(cid:84)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:83)(cid:76)(cid:79)(cid:87)(cid:13)(cid:77)(cid:79)(cid:86)(cid:73)(cid:78)(cid:71)(cid:0)(cid:73)(cid:84)(cid:69)(cid:77)(cid:83)(cid:14)
Net realisable value is determined with reference to relevant market prices.
9. FINANCIAL INSTRUMENTS
Financial instruments recognised in the balance sheet include cash and cash equivalents, investments, trade and other
receivables, borrowings, trade and other payables and derivative financial instruments. The particular recognition methods
adopted are disclosed in the individual policy statements associated with each item.
9.1
Investments
Investments comprise (i) investments in listed companies which are classified as available-for-sale and are accounted for
at fair value, with unrealised holding gains and losses excluded from earnings and reported as a separate component
of shareholders’ equity and are released to the income statement when the investments are sold; (ii) investments in
unlisted companies which are accounted for at directors’ valuation adjusted for write-downs where appropriate.
Purchases and sales of investments are recognised on the trade date, which is the date that the Group commits to
purchase or sell the asset. Cost of purchase includes transaction costs. The fair value of listed investments is based on
quoted bid prices.
Realised gains and losses are included in determining net income or loss. Unrealised losses are included in determining
net income or loss where a significant decline in the value of the investment, other than temporary, has occurred.
Investments in subsidiaries and associates are recognised at cost less accumulated impairment losses.
9.2 Derivative financial instruments
The Group’s general policy with regard to its exposure to the dollar gold price is to remain unhedged. However, hedges
are sometimes undertaken on a project specific basis as follows:
(cid:0)
(cid:0)
(cid:0)
(cid:0)
(cid:0)
(cid:0)
(cid:115)(cid:0)(cid:0)(cid:0)(cid:52)(cid:79)(cid:0)(cid:80)(cid:82)(cid:79)(cid:84)(cid:69)(cid:67)(cid:84)(cid:0)(cid:67)(cid:65)(cid:83)(cid:72)(cid:0)(cid:70)(cid:76)(cid:79)(cid:87)(cid:83)(cid:0)(cid:65)(cid:84)(cid:0)(cid:84)(cid:73)(cid:77)(cid:69)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:83)(cid:73)(cid:71)(cid:78)(cid:73)(cid:70)(cid:73)(cid:67)(cid:65)(cid:78)(cid:84)(cid:0)(cid:69)(cid:88)(cid:80)(cid:69)(cid:78)(cid:68)(cid:73)(cid:84)(cid:85)(cid:82)(cid:69)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:0)(cid:38)(cid:79)(cid:82)(cid:0)(cid:83)(cid:80)(cid:69)(cid:67)(cid:73)(cid:70)(cid:73)(cid:67)(cid:0)(cid:68)(cid:69)(cid:66)(cid:84)(cid:0)(cid:83)(cid:69)(cid:82)(cid:86)(cid:73)(cid:67)(cid:73)(cid:78)(cid:71)(cid:0)(cid:82)(cid:69)(cid:81)(cid:85)(cid:73)(cid:82)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0)(cid:0)(cid:0)(cid:52)(cid:79)(cid:0)(cid:83)(cid:65)(cid:70)(cid:69)(cid:71)(cid:85)(cid:65)(cid:82)(cid:68)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:86)(cid:73)(cid:65)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0)(cid:79)(cid:70)(cid:0)(cid:72)(cid:73)(cid:71)(cid:72)(cid:69)(cid:82)(cid:0)(cid:67)(cid:79)(cid:83)(cid:84)(cid:0)(cid:79)(cid:80)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:14)
The Group may from time to time establish currency and/or interest rate and/or commodity financial instruments to
protect underlying cash flows.
On the date a derivative contract is entered into, the Group designates the derivative as (i) a hedge of the fair value of
a recognised asset or liability (fair value hedge); (ii) a hedge of a forecasted transaction or a firm commitment (cash
flow hedge); (iii) a hedge of a net investment in a foreign entity; or (iv) should the derivative not fall into one of the three
categories above it is not regarded as a hedge.
Derivative financial instruments are initially recognised in the balance sheet at fair value and subsequently remeasured at
their fair value, unless they meet the criteria for the normal purchases normal sales exemption. Recognition of derivatives
which meet the above criteria under IAS 39 is deferred until settlement.
136
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
ACCOUNTING POLICIES continued
Changes in fair value of a derivative that is highly effective, and that is designated and qualifies as a fair value hedge,
are recorded in earnings, along with the change in the fair value of the hedged asset or liability that is attributable to
the hedged risk. If the hedge no longer meets the requirements for hedge accounting, the adjustment to the carrying
amount of the hedge, for which the effective interest rate method is used, is amortised to profit or loss over the period
to maturity.
Changes in fair value of a derivative that is highly effective, and that is designated as a cash flow hedge, are recognised
directly in shareholders’ equity. The gain or loss relating to the ineffective portion is recognised immediately in the
income statement. Where the forecasted transaction or firm commitment results in the recognition of an asset or liability,
the gains and losses previously deferred in equity are transferred from equity and included in the initial measurement of
the cost of the asset or liability. Amounts deferred in shareholders’ equity are included in earnings in the same periods
during which the hedged firm commitment or forecasted transaction affects earnings. When a hedging instrument
expires or is sold, or when a hedge no longer meets the requirements for hedge accounting, any cumulative gain or loss
existing in equity at that time remains in equity and is recognised when the forecast transaction is ultimately recognised
in the income statement. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that
was reported in equity is immediately transferred to the income statement.
Hedges of net investments in foreign entities are accounted for similarly to cash flow hedges. Any gain or loss on the
hedging instrument relating to the effective portion of the hedge is recognised in equity. The gain or loss relating to
the ineffective portion is recognised immediately in the income statement. Gains and losses accumulated in equity are
included in the income statement when the foreign operation is partially disposed of or sold.
Certain derivative transactions, while providing effective economic hedges under the Group’s risk management policies,
do not qualify for hedge accounting. Changes in the fair value of derivatives that are not designated as hedges or that
do not qualify for hedge accounting are recognised immediately in the income statement.
9.3 Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, demand deposits and short-term, highly liquid investments readily
convertible to known amounts of cash and subject to insignificant risk of changes in value and are measured at cost
which is deemed to be fair value as they have a short-term maturity.
Bank overdrafts are included within current liabilities in the balance sheet.
9.4 Trade receivables
Trade receivables are initially recognised at fair value and subsequently carried at amortised cost less provision for
impairment. Estimates made for impairment are based on a review of all outstanding amounts at year end. Irrecoverable
amounts are written off during the year in which they are identified.
9.5 Trade payables
Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective
interest method.
9.6 Embedded derivatives
The Group assesses whether an embedded derivative is required to be separated from a host contract and accounted
for as a derivative when the Group first becomes a party to a contract. Subsequent reassessment is not performed
unless there is a change in the terms of the contract that significantly modifies the cash flows.
9.7 Financial guarantees
Financial guarantee contracts are accounted for as financial instruments and are recognised initially at fair value and
are subsequently measured at the higher of the amount determined in accordance with IAS 37 (Provisions, contingent
liabilities and assets), and the initial amount recognised less cumulative amortisation.
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G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
137
9.8 Non-current assets held for sale
Non-current assets held for sale (or disposal groups) are classified as held for sale if their carrying amount will be
recovered principally through a sale transaction, not through continuing use. These assets may be a component of an
entity, a disposal group or an individual non-current asset. Non-current assets held for sale are stated at the lower of
carrying amount and fair value less costs to sell.
A discontinued operation is a component of an entity that either has been disposed of, or that is classified as held
for sale, and: (i) represents a separate major line of business or geographical area of operations; (ii) is part of a single
co-ordinated plan to dispose of a separate major line of business or geographical area of operations; or (iii) is a
subsidiary acquired exclusively with a view to resale.
10. PROVISIONS
Provisions are recognised when the Group has a present obligation, legal or constructive resulting from past events and it
is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.
11. BORROWINGS
Borrowings are recognised initially at fair value, net of transaction costs incurred, where applicable and subsequently
measured at amortised cost using the effective interest rate method.
Interest payable on borrowings is recognised in the income statement over the term of the borrowings using the effective
interest method.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability
for at least 12 months after the balance sheet date.
12. ENVIRONMENTAL OBLIGATIONS
Long-term environmental obligations are based on the Group’s environmental management plans, in compliance with
applicable environmental and regulatory requirements.
Full provision is made based on the net present value of the estimated cost of restoring the environmental disturbance that
has occurred up to the balance sheet date. The unwinding of the obligation is accounted for in the income statement.
The estimated costs of rehabilitation are reviewed annually and adjusted as appropriate for changes in legislation, technology
or other circumstances. Cost estimates are not reduced by the potential proceeds from the sale of assets or from plant clean
up at closure.
Changes in estimates are capitalised or reversed against the relevant asset. Estimates are discounted at a pre-tax rate that
reflects current market assessments.
Increases due to additional environmental disturbances are capitalised and amortised over the remaining lives of the mines.
These increases are accounted for on a net present value basis.
For certain South African operations annual contributions are made to dedicated rehabilitation trust funds to fund the
estimated cost of rehabilitation during and at the end of the life of the relevant mine. The amounts contributed to this trust
fund are included under non-current assets and are measured at fair value. Interest earned on monies paid to rehabilitation
trust funds is accrued on a time proportion basis and is recorded as interest income. These trusts are consolidated for Group
purposes.
In respect of certain South African operations and all non-South African operations, bank guarantees are provided for funding
of the environmental rehabilitation obligations.
138
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
ACCOUNTING POLICIES continued
13. EMPLOYEE BENEFITS
13.1 Pension and provident funds
The Group operates a defined contribution retirement plan and contributes to a number of industry based defined
contribution retirement plans. The retirement plans are funded by payments from employees and Group companies.
Contributions to defined contribution funds are charged against income as incurred.
13.2 Post-retirement health care costs
Medical cover is provided through a number of different schemes. The Group has an obligation to provide medical
benefits to certain of its pensioners and dependants of ex-employees. These liabilities have been provided in full,
calculated on an actuarial basis. These liabilities are unfunded. Periodic valuation of these obligations is carried out
by independent actuaries using appropriate mortality tables, long-term estimates of increases in medical costs and
appropriate discount rates.
13.3 Share-based payments
The Group operates a number of equity-settled compensation plans. The fair value of the equity-settled instruments is
measured by reference to the fair value of the equity instrument granted which in turn is determined using the modified
Black Scholes and Monte Carlo simulation models on the date of grant.
Fair value is based on market prices of the equity-settled instruments granted, if available, taking into account the terms
and conditions upon which those equity-settled instruments were granted. Fair value of equity-settled instruments
granted is estimated using appropriate valuation models and appropriate assumptions at grant date. Non-market
vesting conditions (service period prior to vesting) are not taken into account when estimating the fair value of the equity-
settled instruments at grant date. Market conditions are taken into account in determining the fair value at grant date.
The fair value of the equity-settled instruments is recognised as an employee benefit expense over the vesting period
based on the Group’s estimate of the number of instruments that will eventually vest, with a corresponding increase in
the share-based payment reserve. Vesting assumptions for non-market conditions are reviewed at each reporting date
to ensure they reflect current expectations.
Where the terms of an equity-settled award are modified, the originally determined expense is recognised as if the terms
had not been modified. In addition, an expense is recognised for any modification, which increases the total fair value
of the share-based payment arrangement, or is otherwise beneficial to the participant as measured at the date of the
modification.
13.4 Termination benefits
Termination benefits are payable when employment is terminated by the Group before the normal retirement date, or
whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognises termination
benefits when it is demonstrably committed to either: terminating the employment of current employees according to
a detailed formal plan without possibility of withdrawal; or providing termination benefits as a result of an offer made to
encourage voluntary redundancy. Benefits falling due more than 12 months after the balance sheet date are discounted
to present value.
14. SHARE CAPITAL
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction therefrom, net of tax.
Incremental costs directly attributable to the issue of new shares for the acquisition of a business are included in the cost of
acquisition as part of the purchase consideration.
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
139
15. REVENUE RECOGNITION
Revenue is recognised to the extent that it is probable that economic benefits will flow to the Group and the amount of revenue
can be reliably measured. Revenue is stated at the fair value of the consideration received or receivable.
15.1 Revenue arising from gold and gold equivalent sales is recognised when the significant risks and rewards of ownership
pass to the buyer. The price of gold, silver and copper is determined by market forces.
S
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Concentrate revenue is calculated, net of refining and treatment charges, on a best estimate basis on shipment date,
using forward metal prices to the estimated final pricing date, adjusted for the specific terms of the agreements.
Variations between the price recorded at the shipment date and the actual final price received are caused by changes
in prevailing copper prices, and result in an embedded derivative in the accounts receivable. The embedded derivative
is marked-to-market each period until final settlement occurs, with changes in fair value classified as provisional price
adjustments and included as a component of revenue.
15.2 Revenue from services is recognised over the period the services are rendered and is accrued in the financial
statements.
15.3 Dividends, which include capitalisation dividends, are recognised when the right to receive payment is established.
15.4 Interest income is recognised on a time proportion basis taking account of the principal outstanding and the effective
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rate over the period to maturity.
16. DIVIDENDS DECLARED
Dividends and the related taxation thereon are recognised only when such dividends are declared.
17. EARNINGS/(LOSS) PER SHARE
Earnings/(loss) per share is calculated based on the net income/(loss) divided by the weighted average number of ordinary
shares in issue during the year. A diluted earnings per share is presented when the inclusion of ordinary shares that may be
issued in the future has a dilutive effect on earnings per share.
18. SEGMENTAL REPORTING
The Group has only one business segment, that of gold mining. Segment analysis is based on individual mining operations.
19. COMPARATIVES
Where necessary, comparatives are adjusted to conform to changes in presentation. No comparatives were adjusted in the
current year unless otherwise stated.
20. ADDITIONAL US DOLLAR FINANCIAL INFORMATION
The translation of the financial statements into US dollar is based on the average exchange rate for the year for the income
statement and cash flow statement and the year end closing exchange rate for balance sheet items. Exchange differences
on translation are accounted for in shareholders’ equity.
This information is provided as supplementary information for convenience purposes only.
140
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
CONSOLIDATED INCOME STATEMENT
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
Figures in millions unless otherwise stated
United States Dollars
2008
2009
Continuing operations:
3,165.0
(2,337.7)
3,228.3
Revenue
(2,415.7)
Cost of sales
827.3
31.2
(80.7)
11.8
1.9
9.3
(20.7)
(45.1)
(1.2)
(9.0)
–
(3.3)
(7.0)
194.8
4.6
913.9
(266.6)
812.6
Net operating profit
24.9
Investment income
(96.9)
Finance expense
(6.2)
Realised (loss)/gain on financial instruments
10.2
(22.7)
(33.7)
(56.4)
(15.7)
(13.9)
14.6
0.2
Gain on foreign exchange
Other (costs)/income
Share-based payments
Exploration expense
Share of losses of associates after taxation
Restructuring costs
South Deep insurance claim
Driefontein 9 Shaft closure costs
(134.2)
Impairment of investments and assets
(16.4)
(Loss)/profit on disposal of investments
0.5
Profit on disposal of property, plant and equipment
466.9
Profit before taxation
(261.2) Mining and income tax
647.3
205.7
Profit for the year from continuing operations
15.3
662.6
613.0
49.6
662.6
94
88
22
Discontinued operations:
–
Profit for the year from discontinued operations
205.7
Profit for the year
Profit attributable to:
170.4
– Ordinary shareholders of the company
35.3
– Minority shareholders
205.7
Earnings per share attributable to ordinary
shareholders of the company:
Basic earnings per share – cents
Diluted earnings per share – cents
25
25
17
Dividends per share – cents
Exchange rate: R9.01/US$ (F2008: R7.27/US$)
The accompanying notes form an integral part of these financial statements.
South African Rand
Notes
2009
2008
1
2
3
4
5
6
7
8
9
29,086.9
23,009.5
(21,765.9)
(16,994.3)
7,321.0
224.8
(872.8)
(55.9)
91.7
(202.8)
(303.4)
(508.3)
(141.3)
(125.5)
131.4
1.9
(1,209.5)
(148.0)
4.3
4,207.6
(2,353.5)
6,015.2
226.8
(587.3)
85.5
13.6
68.4
(150.6)
(327.8)
(8.9)
(65.2)
–
(24.0)
(51.2)
1,416.2
33.6
6,644.3
(1,937.7)
1,854.1
4,706.6
–
111.2
1,854.1
4,817.8
1,535.6
318.5
4,457.5
360.3
1,854.1
4,817.8
10.1
10.2
11
229
227
150
683
637
160
CONSOLIDATED BALANCE SHEET
(cid:72)(cid:91)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
Figures in millions unless otherwise stated
United States Dollars
2008
2009
7,055.4
7,029.0
Non-current assets
ASSETS
5,691.7
5,997.2
Property, plant and equipment
557.4
240.0
473.0
93.3
809.1
227.2
279.2
42.1
6.9
253.7
553.2
Goodwill
54.5
314.1
110.0
Investment in associates
Investments
Environmental trust funds
1,067.2
Current assets
266.5
383.8
Inventories
Trade and other receivables
59.3
Deferred stripping costs
–
Financial instruments
357.6
Cash and cash equivalents
7,864.5
8,096.2
Total assets
51.2
4,074.2
(296.6)
1,308.5
5,137.3
182.9
5,320.2
1,746.4
677.7
814.2
254.5
798.0
611.6
2.8
123.1
–
60.5
EQUITY AND LIABILITIES
Share capital
54.1
4,535.8
Share premium
(959.2)
Other reserves
1,357.7
Retained earnings
4,988.4
Shareholders’ equity attributable to ordinary shareholders
305.6
Minority interests
5,294.0
Total shareholders’ equity per statement
1,834.1
Non-current liabilities
760.4
785.9
Deferred taxation
Borrowings
287.8
Provisions
968.1
Current liabilities
540.6
Trade and other payables
9.7
Bank overdraft
98.2
Taxation
1.8
Financial instruments
317.8
Current portion of borrowings
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
141
South African Rand
Notes
2009
2008
S
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3
:
A
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m
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:
C
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;
C
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B
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56,653.8
56,443.1
48,337.4
45,533.3
4,458.9
439.8
2,531.0
886.7
4,458.9
1,919.8
3,784.4
746.7
8,600.8
6,472.4
2,148.4
3,092.8
477.8
–
2,881.8
1,818.2
2,233.1
336.4
55.5
2,029.2
65,254.6
62,915.5
352.4
31,113.2
(1,135.7)
9,876.2
40,206.1
2,463.3
42,669.4
14,782.7
6,128.8
6,334.3
2,319.6
326.6
27,912.2
3,585.8
9,321.6
41,146.2
1,415.0
42,561.2
13,972.3
5,421.9
6,513.9
2,036.5
7,802.5
6,382.0
4,357.6
77.9
791.8
14.0
4,891.3
21.9
984.6
–
2,561.2
484.2
12
13
14
16
17
18
19
20
21
22
23
24
25
21
20
23
7,864.6
8,096.2
Total equity and liabilities
65,254.6
62,915.5
Exchange rate: R8.06/US$ (F2008: R8.00/US$)
The accompanying notes form an integral part of these financial statements.
142
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
Figures in millions unless otherwise stated
South African Rand
Balance at 30 June 2007
Mark-to-market gain on listed investments
Realised loss on disposal of listed investments
Net gains recognised directly in equity
Profit for the year
Dividends paid
Share-based payments
Disposal of subsidiary
Transactions with minorities
Exercise of employee share options
Foreign exchange translation
Number of
Ordinary
Equity
portion of
Foreign
currency
ordinary shares
share
Share
convertible
translation
in issue
capital
premium
debt (Mvela)
adjustment
652,158,066
326.1
27,840.0
3,130.2
787.5
–
–
–
–
–
–
–
–
1,042,616
–
–
–
–
–
–
–
–
–
0.5
–
–
–
–
–
–
–
–
–
72.2
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2.7
(285.9)
–
–
2,092.2
Balance at 30 June 2008
653,200,682
326.6
27,912.2
3,130.2
2,596.5
Dilution loss on associate
Share of equity investee’s other equity movements
Mark-to-market gain on listed investments
Realised loss on disposal of listed investments
Net losses recognised directly in equity
Deferred taxation on mark-to-market gains and
disposal losses
Profit for the year
Dividends paid
Share-based payments
Transactions with minorities
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Mvela share issue on conclusion of transaction
Exercise of employee share options
Foreign exchange translation
50,000,000
1,549,167
–
25.0
0.8
–
70.8
–
3,130.2
(3,130.2)
Balance at 30 June 2009
704,749,849
352.4
31,113.2
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(809.8)
1,786.7
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
143
Fair value
Asset
Share-
based
Equity
attributable
adjustment
revaluation
payment
Other
Retained
to ordinary
Minority
reserve
reserve
reserve
reserves
earnings
shareholders
interests
Total
equity
S
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3
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:
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C
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y
775.8
313.8
6.2
320.0
–
–
–
–
–
–
–
1,095.8
–
–
(863.9)
151.2
(712.7)
(101.0)
–
–
–
–
–
–
–
282.1
204.7
247.2
(3,559.8)
5,872.4
35,624.1
1,482.2
37,106.3
–
–
–
–
–
–
(204.7)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
150.6
–
–
–
–
–
–
–
–
–
–
–
(74.7)
–
–
–
–
–
4,457.5
313.8
6.2
320.0
4,457.5
–
–
–
360.3
313.8
6.2
320.0
4,817.8
(1,044.8)
(1,044.8)
–
(1,044.8)
–
36.5
–
–
–
153.3
(454.1)
(74.7)
72.7
(131.6)
(308.2)
153.3
(585.7)
(382.9)
72.7
2,092.2
12.3
2,104.5
397.8
(3,634.5)
9,321.6
41,146.2
1,415.0
42,561.2
–
–
–
–
–
–
–
–
303.4
–
–
–
–
(331.9)
60.7
–
–
(271.2)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1,535.6
(981.0)
–
–
–
–
–
(331.9)
60.7
(863.9)
151.2
(983.9)
(101.0)
1,535.6
(981.0)
303.4
–
25.0
71.6
–
–
–
–
–
–
318.5
–
–
747.5
–
–
(331.9)
60.7
(863.9)
151.2
(983.9)
(101.0)
1,854.1
(981.0)
303.4
747.5
25.0
71.6
(809.8)
(17.7)
(827.5)
701.2
(3,905.7)
9,876.2
40,206.1
2,463.3
42,669.4
144
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY continued
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
Figures in millions unless otherwise stated
United States Dollar
Balance at 30 June 2007
Mark-to-market gain on listed investments
Realised loss on disposal of listed investments
Net gains recognised directly in equity
Profit for the year
Dividends paid
Share-based payments
Disposal of subsidiary
Transactions with minorities
Exercise of employee share options
Foreign exchange translation
Number of
Ordinary
Equity
portion of
Foreign
currency
ordinary shares
share
Share
convertible
translation
in issue
capital
premium
debt (Mvela)
adjustment
652,158,066
51.1
4,064.3
453.7
(102.8)
–
–
–
–
–
–
–
–
1,042,616
–
–
–
–
–
–
–
–
–
0.1
–
–
–
–
–
–
–
–
–
9.9
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
0.4
(31.9)
–
–
(318.1)
Balance at 30 June 2008
653,200,682
51.2
4,074.2
453.7
(452.4)
Dilution loss on associate
Share of equity investee’s other equity movements
Mark-to-market gain on listed investments
Realised loss on disposal of listed investments
Net losses recognised directly in equity
Deferred taxation on mark-to-market gains and
disposal losses
Profit for the year
Dividends paid
Share-based payments
Transactions with minorities
–
–
–
–
–
–
–
–
–
–
Mvela share issue on conclusion of transaction
Exercise of employee share options
Foreign exchange translation
50,000,000
1,549,167
–
–
–
–
–
–
–
–
–
–
–
2.8
0.1
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
453.7
(453.7)
7.9
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(122.1)
(574.5)
Balance at 30 June 2009
704,749,849
54.1
4,535.8
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
145
Fair value
Asset
Share-
based
Equity
attributable
adjustment
revaluation
payment
Other
Retained
to ordinary
Minority
reserve
reserve
reserve
reserves
earnings
shareholders
interests
Total
equity
106.0
36.0
37.5
(495.9)
832.6
4,982.5
207.2
5,189.7
43.1
0.9
44.0
–
–
–
–
–
–
–
150.0
–
–
(95.9)
16.8
(79.1)
(11.2)
–
–
–
–
–
–
–
59.7
–
–
–
–
–
–
(36.0)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
20.7
–
–
–
–
–
–
–
–
–
–
–
(10.3)
–
–
–
–
–
613.0
(142.5)
–
5.4
–
–
–
43.1
0.9
44.0
613.0
(142.5)
21.1
(62.5)
(10.3)
10.0
(318.1)
–
–
–
49.6
–
–
(17.4)
(43.1)
–
(13.4)
43.1
0.9
44.0
662.6
(142.5)
21.1
(79.9)
(53.4)
10.0
(331.5)
58.2
(506.2)
1,308.5
5,137.2
182.9
5,320.1
–
–
–
–
–
–
–
–
33.7
–
–
–
–
(36.8)
6.7
–
–
(30.1)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
170.4
(121.2)
–
–
–
–
–
(36.8)
6.7
(95.9)
16.8
(109.2)
(11.2)
170.4
(121.2)
33.7
–
2.8
8.0
–
–
–
–
–
–
35.3
–
–
97.6
–
–
(36.8)
6.7
(95.9)
16.8
(109.2)
(11.2)
205.7
(121.2)
33.7
97.6
2.8
8.0
(122.1)
(10.2)
(132.3)
91.9
(536.3)
1,357.7
4,988.4
305.6
5,294.0
S
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146
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
CONSOLIDATED CASH FLOW STATEMENT
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
Figures in millions unless otherwise stated
United States Dollars
2008
905.2
2009
656.8
Cash flows from operating activities
6,000.8
6,692.1
1,195.1
1,183.4
Cash generated by operations
26
10,663.5
8,688.7
South African Rand
Notes
2009
2008
17.9
4.6
(0.4)
36.1
14.5
Interest received
1.3
(0.3)
Dividends received
Post-retirement health care payments
(131.4)
Change in working capital
1,253.3
1,067.5
Cash generated by operating activities
(79.5)
(143.5)
(91.6)
Interest paid
(197.9)
Taxation paid
1,030.3
778.0
Net cash from continuing operations
–
Net cash from discontinued operations
17.4
(142.5)
131.0
11.5
(2.3)
27
(1,183.8)
9,619.9
(825.3)
28
(1,812.8)
6,981.8
–
130.3
33.6
(2.6)
262.3
9,112.3
(578.4)
(923.4)
7,610.5
126.4
(121.2)
Dividends paid
29
(981.0)
(1,044.8)
(1,063.0)
(809.3)
Cash flows from investing activities
(7,283.5)
(7,727.2)
(1,239.9)
(849.0)
Additions to property, plant and equipment
(7,649.2)
(9,013.9)
5.8
143.3
160.2
(134.5)
13.7
(11.6)
67.0
–
596.4
(635.4)
96.0
10.0
(90.8)
18.6
323.1
250.9
3.6
5.0
Proceeds on disposal of property, plant and equipment
Proceeds on disposal of subsidiary
–
Net cash from discontinued operations
(12.8)
Purchase of investments
54.3
Proceeds on disposal of investments
(10.4)
Environmental trust funds and rehabilitation payments
275.3
Cash flows from financing activities
–
Loans received from minority shareholders
1,312.3
Loans raised
(1,047.7)
Loans repaid
–
Proceeds from rights issue – Cerro Corona
10.7
Proceeds from the issue of shares
122.8
Net cash generated/(utilised)
(25.8)
Effect of exchange rate fluctuation on cash held
250.9
Cash and cash equivalents at beginning of the year
32.0
45.0
–
(99.3)
482.0
(94.0)
2,086.8
10.3
11,703.9
(9,724.0)
–
96.6
804.1
(7.5)
2,007.3
42.2
1,042.1
1,164.6
(977.6)
99.8
(84.4)
557.1
–
4,335.9
(4,619.5)
768.0
72.7
(478.0)
175.2
2,310.1
347.9
Cash and cash equivalents at end of the year
21
2,803.9
2,007.3
The accompanying notes form an integral part of these financial statements.
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
147
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
Figures in millions unless otherwise stated
United States Dollars
2008
2009
1. REVENUE
Revenue from mining operations
3,165.0
3,228.3
– Spot sales
3,165.0
3,228.3
Total revenue
(734.3)
(503.0)
(182.7)
(347.8)
(141.9)
(11.8)
(416.2)
(685.4)
(533.5)
(204.7)
(411.0)
(144.8)
23.3
(459.7)
2. COST OF SALES
Salaries and wages
Consumable stores
Utilities
Mine contractors
Other
Gold inventory change
Amortisation and depreciation
(2,337.7)
(2,415.7)
Total cost of sales
3.
INVESTMENT INCOME
Dividends received
Interest received – environmental trust funds
Interest received – other
Total investment income
4. FINANCE EXPENSE
Interest paid – Mvela loan
Interest paid – other
Preference share interest
Interest capitalised
Interest charge – environmental rehabilitation
1.3
9.1
14.5
24.9
(2.0)
(89.6)
(9.8)
8.7
(4.2)
4.6
8.7
17.9
31.2
(8.6)
(70.9)
(2.7)
8.0
(6.5)
(80.7)
South African Rand
2009
2008
29,086.9
23,009.5
29,086.9
23,009.5
(6,175.6)
(4,806.5)
(1,844.1)
(3,703.3)
(1,304.4)
210.3
(5,338.0)
(3,656.7)
(1,328.5)
(2,528.5)
(1,031.5)
(85.5)
(4,142.3)
(3,025.6)
(21,765.9)
(16,994.3)
11.5
82.3
131.0
33.6
62.9
130.3
224.8
226.8
(17.9)
(807.4)
(87.9)
78.5
(38.1)
(62.7)
(515.7)
(19.5)
57.9
(47.3)
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(96.9)
Total finance expense
(872.8)
(587.3)
148
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
5. SHARE-BASED PAYMENTS
The Group grants equity-settled instruments comprising share options and restricted shares to directors, certain officers and
employees. During financial 2009, the following share plans were in place: The GF Management Incentive Scheme, the Gold
Fields Limited 2005 Share Plan, the Gold Fields Limited 2005 Non-executive Share Plan and the GF Non-executive Director
Share Plan. Details of the salient features of these plans are included in the directors’ report.
The following information is available for each plan:
30 June 2008
Average
instrument
price (cps)
Number of
instruments
(a) The GF Management Incentive Scheme
30 June 2009
Number of
instruments
Average
instrument
price (cps)
76.66
5,584,973 Outstanding at 1 July 2008
4,212,219
78.38
–
71.82
72.33
–
78.38
Average
instrument
price (cps)
Movement during the year:
–
Granted during the year
(990,175)
Exercised and released
(382,579)
Forfeited
–
Cancelled
4,212,219 Outstanding at 30 June 2009
Included in the above are 2,266,799 (2008: 3,307,624)
vested options.
–
(1,367,882)
(539,916)
–
2,304,421
–
69.69
105.39
–
77.20
Number of
instruments
(b) GF Non-executive Director Share Plan
Number of
instruments
Average
instrument
price (cps)
83.47
174,400 Outstanding at 1 July 2008
146,700
83.81
–
81.71
–
–
Movement during the year:
–
Granted during the year
(27,700)
Exercised and released
–
–
Forfeited
Cancelled
83.81
146,700 Outstanding at 30 June 2009
All options above in F2009 and F2008 have vested.
–
(25,000)
(40,000)
–
81,700
–
43.70
99.21
–
88.54
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
149
149
CONSOLIDATED BALANCE SHEETS
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
5. SHARE-BASED PAYMENTS (continued)
No further allocations are being made under schemes a and b above, in view of the new plans below. However, some share option expiry dates were
extended to enable participants who were disadvantaged due to closed periods to be placed in an equitable position. The incremental fair value of
the modification is R8.1 million and was recorded in earnings (2008: R4.4 million).
30 June 2008
Contractual
Weighted
life
Number
average
extended
of options price (Rand)
by (years)
The following directors were affected by the modification:
Executive directors
97,999
294,932
22,833
78.81
74.35
114.18
0.79 NJ Holland
0.78 ID Cockerill
0.67 TP Goodlace
Non-executive directors
6,700
20,000
25,000
20,000
20,000
55,000
68.59
99.21
84.79
99.21
99.21
68.41
0.59 K Ansah
1.47 JM McMahon
1.18 RL Pennant-Rea
1.47 PJ Ryan
1.47 CI von Christierson
1.16 AJ Wright
Performance
Share
vesting
Average appreciation
restricted
instrument
price (cps)
rights
(SARS)
shares (c) Gold Fields Limited 2005 Share Plan and
(PVRS)
Gold Fields Limited 2005 Non-executive Share Plan
30 June 2009
Contractual
Weighted
life
Number
average
extended
of options price (Rand) by (years)
172,499
76.59
–
–
3,167
154.65
0.38
–
0.01
6,700
68.59
0.39
–
–
–
25,000
84.79
0.39
–
20,000
55,000
–
99.21
68.41
–
0.39
0.39
Performance
vesting
Share
restricted appreciation
Average
shares
(PVRS)
rights instrument
(SARS) price (cps)
124.75
1,765,540
1,906,452 Outstanding at 1 July 2008
5,477,487
3,837,937
112.73
Movement during the year:
105.97
2,569,481
4,267,761 Granted during the year
–
–
(21,933) Exercised and released
118.77
(497,084)
(674,793) Forfeited
–
–
–
–
– Conditions for vesting not met
– Cancelled
2,668,771
1,311,271
108.90
(106,954)
–
–
(880,240)
(539,582)
121.07
(226,900)
–
–
–
–
–
112.7
3,837,937
5,477,487 Outstanding at 30 June 2009
6,932,164
4,609,626
111.50
Included in the above are 558,863 (2008: nil) vested
restricted shares.
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150
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
5. SHARE-BASED PAYMENTS (continued)
30 June 2008
30 June 2009
(c) Gold Fields Limited 2005 Share Plan and Gold Fields Limited 2005 Non-executive
Share Plan (continued)
The fair value of equity instruments granted during the year were valued using the Black
Scholes and Monte Carlo Simulation models.
Black Scholes Model
This model is used to value the Share Appreciation Rights (SARS) as described in the
directors’ report. The inputs to the model for options granted during the year were
as follows:
– weighted average exercise price
– exponentially weighted moving average volatility (based on a statistical analysis
of the share price on a weighted moving average basis for the expected term
of the option)
– expected term (years)
– long-term expected dividend yield
– weighted average risk free interest rate
– weighted average fair value
Monte-Carlo Simulation
This model is used to value the Performance Vesting Restricted Shares (PVRS) as
described in the Directors’ Report. The inputs to the model for options granted
during the year were as follows:
– weighted average historical volatility (based on a statistical
analysis of the share price on a weighted moving average basis for the expected
term of the option)
– expected term (years)
– historical dividend yield
– weighted average three year risk free interest rate (based
R105.98
41.7%
3.0–4.2
1.5%
10.8%
R41.72
42.4%
3.0
1.5%
2.8%
on US interest rates)
R146.30
– weighted average fair value
Subsequent to the implementation of the Gold Fields Limited 2005 Share Plans, during
financial year 2008, it became evident that the Philadelphia XAU Index (XAU Index) was not
representative of Gold Fields’ peer competitors, as some of the companies in the XAU Index
are not pure gold mining companies. Furthermore, since the selection of the XAU Index as a
benchmark, a number of relatively small gold producers have been included in the XAU Index
and again these cannot be regarded as representative of Gold Fields’ peer competitors.
Accordingly instead of using the XAU Index, Gold Fields’ performance will be measured against
only five gold mining companies who can be regarded as peer competitors.
The incremental fair value and the inputs used in calculating the effect of the modification are
listed below:
– weighted average expected volatility (based on a statistical
analysis of the share price on a weighted moving average
basis for the expected term of the option)
– expected term (years)
– expected dividend yield
– weighted average three year risk free interest rate (based
on US interest rates)
41.2%
3.0
0.8%
2.5%
R62.53
– weighted average incremental fair value of modification
R108.90
51.7%
3.0 – 4.2
1.8%
6.9%
R45.90
67.8%
3.0
2.3%
0.6%
R209.40
n/a
n/a
n/a
n/a
n/a
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
151
5. SHARE-BASED PAYMENTS (continued)
The following table summarises information relating to the options outstanding at 30 June 2009:
30 June 2008
Weighted average
30 June 2009
Weighted average
Contractual
Number of
Range of exercise prices for outstanding equity
Number of
Contractual
life (years)
Price
instruments
instruments (South African rands)
instruments
Price
life (years)
2.43
0.16
0.43
3.23
5.20
3.88
1.77
–
5,477,488
n/a*
21.72
46.05
72.39
102.99
123.43
150.80
93,000
10.00 – 34.99
252,200
35.00 – 59.99
2,975,255
60.00 – 84.99
2,955,032
85.00 – 109.99
1,753,702
110.00 –134.99
167,666
135.00 –159.99
13,674,343
Total outstanding at 30 June 2009
–
–
46.23
72.25
105.73
123.79
146.02
1.98
–
1.00
2.27
4.84
3.11
1.65
6,932,164
–
93,200
1,826,009
3,690,976
1,335,164
50,398
13,927,911
* Restricted shares (PVRS) are awarded for no consideration.
111.74
Weighted average share price during the year
89.20
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G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
Figures in millions unless otherwise stated
United States Dollars
2008
2009
–
–
(7.0)
(7.0)
3.2
0.1
8.1
0.8
(111.7)
(1.9)
(6.7)
(0.4)
(37.1)
(1.1)
(42.8)
2.6
(33.5)
(34.0)
(118.3)
(16.0)
–
(134.2)
6.
7.
IMPAIRMENT OF INVESTMENTS AND ASSETS
Impairment of investment in associate – Rusoro Mining Limited
Impairment of listed investments
Impairment of property, plant and equipment
Impairment of investments and assets
INCLUDED IN PROFIT BEFORE TAXATION
ARE THE FOLLOWING:
Expenses
Auditors’ remuneration
– audit fee
– non-audit services
Environmental rehabilitation inflation adjustment
Operating lease charges
8. MINING AND INCOME TAX
The components of mining and income tax are the following:
South African taxation
– mining tax
– non-mining tax
– company and capital gains tax
– prior year adjustment – current tax
– deferred tax
– prior year adjustment – deferred tax
Foreign taxation
– current
– prior year adjustment – current tax
– foreign levies and royalties
– deferred tax
2.9
0.5
14.4
0.8
(93.1)
(2.4)
(6.2)
–
(35.1)
2.5
(33.6)
–
(37.6)
(55.7)
South African Rand
2009
2008
(1,065.7)
(143.8)
–
(1,209.5)
25.7
4.3
129.4
7.2
(839.0)
(21.4)
(56.1)
–
(316.2)
22.8
(302.5)
–
(339.4)
(501.7)
–
–
(51.2)
(51.2)
22.9
1.0
59.0
5.6
(812.3)
(13.7)
(48.4)
(3.2)
(269.6)
(8.0)
(311.3)
19.2
(243.4)
(247.0)
(266.6)
(261.2)
Total mining and income tax
(2,353.5)
(1,937.7)
Major items causing the Group’s income tax to differ
from the maximum South African statutory mining tax
rate of 43.0% (2008: 43.0%) were:
Tax on profit before taxation at maximum South African
statutory mining tax rate
Rate adjustment to reflect the actual realised company
tax rates in South Africa and offshore
South African mining tax formula rate adjustment
Use of assessed loss not previously recognised
Non-deductible share-based payments
Non-deductible exploration expense
Non-deductible impairment of investments and assets
Non-deductible/non-taxable (loss)/profit on disposal
of investments
Net non-deductible expenditure and non-taxable income
Foreign levies and royalties
Deferred tax asset not recognised
Capital gains tax
Other
(1,809.4)
(2,857.0)
507.4
249.7
24.5
(130.5)
(218.6)
(520.1)
(63.6)
(55.6)
(339.4)
(20.7)
–
22.9
423.7
221.6
30.5
(64.8)
(141.0)
(22.0)
609.0
109.6
(243.3)
(7.2)
(6.9)
10.0
Mining and income tax expense
(2,353.5)
(1,937.7)
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
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8. MINING AND INCOME TAX (continued)
Tax rates
South Africa
Mining tax1
Non-mining tax2
Company tax rate
2009
2008
Y = 43 – 215/X Y = 43 – 215/X
35.0%
28.0%
35.0%
28.0%
1 South African mining tax on mining income is determined according to a formula which takes into account the profit and revenue from mining operations.
South African mining taxable income is determined after the deduction of all mining capital expenditure, with the proviso that this cannot result in an
assessed loss. Capital expenditure amounts not deducted are carried forward as unredeemed capital expenditure to be deducted from future mining income.
Depreciation is ignored for the purpose of calculating South African mining taxation.
In the formula above, Y is the percentage rate of tax payable and X is the ratio of mining profit, after the deduction of redeemable capital expenditure, to mining
revenue expressed as a percentage.
2 Non-mining income of South African mining operations consists primarily of interest received.
International operations
Company tax rate
Australia
Ghana
Peru*
Royalties
Australia
Ghana
Peru
2009
2008
30.0%
25.0%
35.6%
2.5%
3.0%
3.0%
30.0%
25.0%
35.6%
2.5%
3.0%
3.0%
* The tax rate applicable to Peru is 30% excluding an effective 5.6% Workers Participation tax payable on taxable profits.
Deferred tax is provided at the expected future rate for mining operations arising from temporary differences between the
carrying values and tax values of assets and liabilities.
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G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
8. MINING AND INCOME TAX (continued)
At 30 June 2009 the Group had the following estimated amounts available for set-off against future income:
F2009
F2008
Unredeemed
capital
Deferred tax
asset not Unredeemed
recognised
capital
Deferred tax
asset not
recognised
expenditure
Tax losses on tax losses
expenditure
Tax losses on tax losses
R million
R million
R million
R million
R million
R million
South Africa3
Beatrix Division
1,348.9
GFI Mining South Africa (Pty) Limited
1,348.9
Gold Fields Limited
–
–
–
–
Gold Fields Operations Limited
2,702.2
4,666.7
GFI Joint Venture Holdings (Pty) Limited
6,291.1
Living Gold (Pty) Limited
Golden Oils (Pty) Limited
Agrihold (Pty) Limited
Golden Hytec Farming (Pty) Limited
–
–
–
–
766.9
142.2
5.7
17.8
9.3
–
–
–
–
–
39.8
1.6
5.0
2.6
1,572.5
1,572.5
–
–
–
11.6
2,216.4
4,463.3
5,788.9
–
–
–
–
831.8
134.8
3.2
8.5
9.3
–
–
–
–
–
37.8
0.9
2.4
2.6
10,342.2
5,608.6
49.0
9,577.8
5,462.5
43.7
3 These deductions are available to be utilised against income generated by the relevant tax entity and do not expire unless the tax entity concerned ceases
to mine commercially for a period of longer than one year. Under South African mining tax ring-fencing legislation, each tax entity is treated separately and
as such these deductions can only be utilised by the tax entities in which the deductions have been generated. South African tax losses have no expiration
date.
F2009
F2008
Unredeemed
capital
Deferred tax
asset not Unredeemed
recognised
capital
Deferred tax
asset not
recognised
expenditure
Tax losses on tax losses
expenditure
Tax losses on tax losses
US$ million US$ million US$ million
US$ million
US$ million
US$ million
International operations
Orogen Investments SA (Luxembourg) 4
Gold Fields Arctic Platinum Oy
Gold Fields Ghana Limited
Abosso Goldfields Limited
Gold Fields La Cima
–
–
96.7
6.7
615.4
188.9
96.1
54.0
25.0
–
–
–
–
–
–
–
–
28.1
7.8
707.9
211.5
106.1
–
–
–
60.5
27.6
–
–
–
718.8
285.0
79.0
743.8
317.6
88.1
4 In terms of current Luxembourg taxation legislation, losses incurred in accounting periods subsequent to 31 December 1990, can be carried forward
indefinitely. All losses incurred by Orogen Investment SA (Luxembourg) were incurred subsequent to 31 December 1990.
Gold Fields Australia (Pty) Limited
–
–
–
–
34.2
–
AUS$ million AUS$ million AUS$ million AUS$ million AUS$ million AUS$ million
Figures in millions unless otherwise stated
United States Dollars
2008
2009
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
155
South African Rand
2009
2008
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9. DISCONTINUED OPERATIONS
On 30 November 2007, Gold Fields disposed of all its assets
in Venezuela to Rusoro Mining Limited. The gross proceeds
from the sale of the Venezuelan assets amounted to
R2.8 billion (US$0.4 billion) and comprised cash of
R1.2 billion (US$0.2 billion) and 140 million newly-issued
shares in Rusoro Mining Limited valued at R1.6 billion
(US$0.2 billion) on 30 November 2007.
The results of the Venezuelan assets are presented below:
41.2
(29.5)
11.7
(5.7)
6.0
(0.9)
5.1
10.2
15.3
–
–
–
–
–
–
–
–
–
Revenue
Cost of sales
Net operating profit
Other cost
Profit before tax
Mining and income tax
Net profit
Profit on sale of Venezuelan assets
Profit for the year from discontinued operations
–
–
–
–
–
–
–
–
–
299.6
(214.7)
84.9
(41.1)
43.8
(6.8)
37.0
74.2
111.2
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156
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
Figures in millions unless otherwise stated
United States Dollars
2008
2009
94
25
10. EARNINGS PER SHARE
10.1 Basic earnings per share – cents
South African Rand
2009
2008
229
683
Basic earnings per share is calculated by dividing the
profit attributable to ordinary shareholders of
R1,535.6 million (2008: R4,457.5 million) by the
weighted average number of ordinary shares in issue
during the year of 670,328,262 (2008: 652,538,212).
88
25
10.2 Diluted earnings per share – cents
227
637
Diluted basic earnings per share is calculated on the
basis of adjusted profit attributable to ordinary
shareholders of R1,535.6 million (2008: R4,496.3 million)
and 677,790,732 (2008: 706,252,205) shares, being
the diluted number of ordinary shares in issue during
the year.
Profit used to calculate diluted earnings per share is
calculated as follows:
613.0
5.3
170.4
Profit attributable to ordinary shareholders
–
Interest expense of Mvela’s convertible debt – net of tax
1,535.6
–
4,457.5
38.8
618.3
170.4
Profit used to determine diluted earnings per share
1,535.6
4,496.3
The weighted average number of shares has been
adjusted by the following to arrive at the diluted
number of ordinary shares:
Weighted average number of shares
Share options in issue
670,328,262
652,538,212
7,462,470
3,713,993
Assumed conversion of Mvela’s convertible debt
–
50,000,000
Diluted number of ordinary shares
677,790,732
706,252,205
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G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
157
Figures in millions unless otherwise stated
United States Dollars
2008
2009
63
48
10. EARNINGS PER SHARE (continued)
10.3 Headline earnings per share – cents
Headline earnings per share is calculated on the
basis of adjusted net earnings attributable to ordinary
shareholders of R2,890.0 million (2008: R2,992.3 million)
and 670,328,262 (2008: 652,538,212) shares, being
the weighted average number of ordinary shares in
issue during the year.
South African Rand
2009
2008
431
459
Net profit attributable to ordinary shareholders is
reconciled to headline earnings as follows:
Net profit attributable to ordinary shareholders
Loss/(profit) on disposal of investments
Taxation effect of profit on disposal of investments
Profit on disposal of property, plant and equipment
Taxation effect of profit on property, plant and equipment
170.4
16.4
–
(0.5)
0.1
134.2
Impairment of assets
–
–
Taxation effect of impairment of assets
Profit on sale of Venezuelan assets
1,535.6
148.0
4,457.5
(1,416.2)
–
(4.3)
1.2
1,209.5
–
–
2.2
(33.6)
20.8
51.2
(15.4)
(74.2)
320.6
Headline earnings
2,890.0
2,992.3
47
10.4 Diluted headline earnings per share – cents
426
429
613.0
(194.8)
0.3
(4.6)
2.9
7.0
(2.1)
(10.2)
411.5
59
Diluted headline earnings per share is calculated on
the basis of adjusted headline earnings attributable
to ordinary shareholders of R2,890.0 million (2008:
R3,031.1 million) and 677,790,732 (2008: 706,252,205)
shares, being the diluted number of ordinary shares
in issue during the year.
11. DIVIDENDS
89.4
101.9
declared on 1 August 2008
784.6
619.9
2008 final dividend of 120 cents per share (2007: 95 cents)
54.3
19.3
declared on 28 January 2009
196.4
424.9
2009 interim dividend of 30 cents per share (2008: 65 cents)
A final dividend in respect of financial 2009 of 80 cents
per share was approved by the Board of Directors on
5 August 2009. This dividend payable is not reflected in
these financial statements.
No Secondary Tax on Companies is payable on the dividend
declared after year end due to sufficient STC credits
available in Gold Fields Limited.
143.7
121.2
Total dividends
981.0
1,044.8
158
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
(cid:45)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
Figures in millions unless otherwise stated
United States Dollars
Land,
Mine
mineral development,
rights and infrastructure
rehabilitation
and other
assets
assets
Total
South African Rand
Mine
development,
Land,
mineral
infrastructure
rights and
and other
rehabilitation
Total
assets
assets
12. PROPERTY, PLANT AND EQUIPMENT
30 June 2009
Cost
1,007.6
8,047.6
9,055.2
Balance at beginning of the year
72,441.5
64,380.8
8,060.7
827.8
848.9
Additions
7,649.2
7,458.8
190.4
8.7
(15.5)
7.7
–
8.7
Finance charges capitalised1
(18.3)
Disposals
9.0
22.7
Other
Additions to rehabilitation assets
78.5
(164.6)
81.4
204.4
78.5
(139.6)
69.6
–
(66.6)
(140.2)
(206.8)
Translation adjustment
(1,951.9)
(1,435.5)
–
(25.0)
11.8
204.4
(516.4)
21.1
–
(2.8)
1.30
22.7
983.3
8,736.1
9,719.4
Balance at end of the year
78 338.5
70,412.6
7,925.9
286.2
3,077.3
3,363.5
Balance at beginning of the year
26,908.2
24,618.5
2,289.7
Accumulated depreciation and impairment
26.1
(1.0)
0.1
433.6
459.7
Charge for the year
(2.9)
1.0
(3.9)
Disposals
1.1
Other
(28.6)
(69.6)
(98.2)
Translation adjustment
4,142.3
3,907.0
235.1
(35.8)
(26.4)
9.4
8.6
(9.4)
0.8
(1,023.0)
(786.1)
(236.7)
282.8
3,439.4
3,722.2
Balance at end of the year
30,001.1
27,721.6
2,279.5
700.5
5,296.7
5,997.2
Carrying value at end of the year
48,337.4
42,691.0
5,646.4
30 June 2008
1,007.6
8,047.6
9,055.2
Cost
72,441.5
64,380.8
8,060.7
286.2
3,077.3
3,363.5
Accumulated depreciation and impairment
26,908.2
24,618.5
2,289.7
721.4
4,970.3
5,691.7
Carrying value at end of the year
45,533.3
39,762.3
5,771.0
Notes
1 Borrowing costs of R16.5 million arising on Group borrowings specifically related to the construction of Cerro Corona project were capitalised during the year. The
balance of R62.0 million of the borrowing cost capitalised relates to Group general borrowings which directly relates to certain qualifying projects at the South African
operations. An average interest capitalisation rate of 13.7% was applied.
S
e
c
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3
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n
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i
F
n
a
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c
a
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S
t
a
t
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m
e
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t
s
:
N
o
t
e
s
t
o
t
h
e
C
o
n
s
o
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i
d
a
t
e
d
F
n
a
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c
a
i
i
l
S
t
a
t
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m
e
n
t
s
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
159
Figures in millions unless otherwise stated
United States Dollars
2008
2009
13. GOODWILL
623.7
(66.3)
557.4
557.4
(4.2)
553.2
Balance at beginning of the year
Translation
Balance at end of the year
South African Rand
2009
2008
4,458.9
–
4,458.9
–
4,458.9
4,458.9
The goodwill arose on the acquisition of South Deep and is
attributable to the upside potential of the asset, synergies,
deferred tax and the gold multiple.
The total goodwill has been allocated to South Deep, being
the cash generating unit (CGU), where it is tested for
impairment as part of the CGU.
In line with the accounting policy, the recoverable amount
was determined by reference to “fair value less costs to sell”
being the higher of “value in use” or “fair value less cost to
sell”, based on the cash flows over the life of the asset and
discounted to present value at an appropriate discount rate.
Management’s estimates and assumptions include:
– Long-term gold price of R245,000 per kilogram for 2010
and 2011 and R280,000 per kilogram thereafter (2008:
R210,000 per kilogram); and,
– a discount rate of 6%.
– Annual life of mine plan which take into account the
following:
– proved and probable ore reserves of South Deep;
– value beyond proved and probable reserves determined
using appropriate price assumptions;
– cash flows used in impairment calculations are based
on the life of mine plan which exceeds five years; and
– capital expenditures estimates as per the life of mine plan.
The carrying value of CGUs, including goodwill, is tested on
an annual basis for impairment. In addition, the group
reviews and tests the carrying value of assets when events
or changes in circumstances suggest that the carrying
amount of a CGU may not be recoverable.
Expected future cash flows used to determine the recoverable
amount of property, plant and equipment and goodwill are
inherently uncertain and could materially change over time.
They are significantly affected by a number of factors
including reserves and production estimates, together with
economic factors such as the spot gold price, foreign
currency exchange rates, estimates of production costs,
future capital expenditure and discount rates.
Therefore it is possible that outcomes within the next
financial year that are materially different from the
assumptions used in the impairment testing process could
require an adjustment to the carrying values.
160
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
Figures in millions unless otherwise stated
United States Dollars
2008
2009
8.8
231.2
240.0
6.1
48.4
54.5
14. INVESTMENT IN ASSOCIATES
Investment in Rand Refinery Limited
Investment in Rusoro Mining Limited
Total investment in associates
(a) Rand Refinery Limited
The Group has a 34.9% interest in Rand Refinery Limited,
a company incorporated in the Republic of South Africa,
which is involved in the refining of bullion and by-products
which are sourced from, inter alia, South African and foreign
gold producing mining companies. The investment has
been equity accounted as from 1 July 2002.
Rand Refinery Limited has a 30 September year end and
equity accounting is based on results to 31 May 2009.
Total revenue of associate – 100% basis for the period
Total profit of associate – 100% basis for the period
Investment in associate consists of:
Unlisted shares at cost
Share of accumulated profits brought forward
Dividend received
Profit after taxation
Translation adjustments
Total investment in associate
The Group’s interest in the summarised financial statements
of Rand Refinery Limited:
Non-current assets
Current assets
Total assets
Non-current liabilities
Current liabilities
Total liabilities
Net assets
Reconciliation of the total investment in associate with
attributable net assets:
Net assets
Dividend received
Fair value adjustment*
Carrying value
* The investment in associate was fair valued at 1 July 2002, the date
when significant influence was obtained.
46.1
13.3
3.3
1.8
–
4.5
(0.8)
8.8
8.3
10.7
19.0
1.2
3.3
4.5
14.5
14.5
(1.4)
(4.3)
8.8
52.1
4.6
3.3
5.5
(5.6)
1.6
1.3
6.1
10.1
14.0
24.1
2.1
10.2
12.3
11.8
11.8
(1.4)
(4.3)
6.1
South African Rand
2009
2008
49.5
390.3
70.0
1,849.8
439.8
1,919.8
469.8
41.2
22.3
47.7
(34.9)
14.4
–
49.5
81.5
112.9
194.4
16.6
82.6
99.2
95.2
95.2
(8.4)
(37.3)
49.5
334.9
96.8
22.3
13.9
–
33.8
–
70.0
66.3
86.0
152.3
9.9
26.7
36.6
115.7
115.7
(8.4)
(37.3)
70.0
Figures in millions unless otherwise stated
United States Dollars
2008
2009
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
161
South African Rand
2009
2008
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14. INVESTMENT IN ASSOCIATES (continued)
(b) Rusoro Mining Limited
As a portion of the consideration received for the sale of the
Venezuelan assets, the Group acquired 140 million shares in
Rusoro Mining Limited, an interest of 36.2%. At 30 June 2009,
the interest in Rusoro Mining Limited had been reduced to
26.4% mainly because Gold Fields did not participate in a
Rusoro Mining Limited rights offer during F2009. This resulted
in a dilution loss of R331.9 million which has been accounted
for in equity as noted below.
Rusoro Mining Limited, a company listed on the TSX Venture
Exchange, is a junior gold producer, with a large land position
in the prolific Bolivar State gold region in southern Venezuela.
The investment has been equity accounted as from
30 November 2007.
Rusoro Mining Limited has a 31 December year end and
equity accounting is based on results published to
31 March 2009.
Total revenue of associate – 100% basis for the period
Total loss of associate – 100% basis for the period
Investment in associate consists of:
Listed shares at fair value at acquisition
Share of accumulated losses
Dilution loss
Impairment of investment
Other equity movements
Translation adjustments
800.1
(490.1)
1,604.7
(224.3)
(331.9)
(1,065.7)
86.6
320.9
87.1
(117.8)
1,604.7
(42.7)
–
–
–
287.8
Total investment in associate
390.3
1,849.8
i
F
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S
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m
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s
:
N
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s
t
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t
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C
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s
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i
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a
t
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d
F
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a
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c
a
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S
t
a
t
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m
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t
s
11.7
(15.8)
236.9
(5.7)
–
–
–
–
231.2
372.1
20.8
392.9
144.1
13.3
157.4
–
88.8
(54.4)
236.9
(25.8)
(41.2)
(132.2)
10.7
–
48.4
242.6
25.1
267.7
86.0
9.8
95.8
0.2
The Group’s interest in the summarised financial
statements of Rusoro Mining Limited:
Non-current assets
Current assets
Total assets
Non-current liabilities
Current liabilities
Total liabilities
Non-controlling interest
235.5
171.7
Net assets
Reconciliation of the total investment in associate with
attributable net assets:
Net assets
Translation adjustments
Impairment of investment in associate
171.7
(5.0)
(118.3)
48.4
Carrying value
235.5
(4.3)
–
231.2
The carrying value of Rusoro is based on the market price
at 30 June 2009. This price was used to determine the
impairment charge of R1,065.7 million.
1,955.0
202.6
2,976.4
166.4
2,157.6
3,142.8
693.4
79.0
1,153.0
106.4
772.4
1,259.4
1.3
–
1,383.9
1,883.4
1,383.9
72.1
(1,065.7)
1,883.4
(33.6)
–
390.3
1,849.8
162
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
15. FINANCIAL INSTRUMENTS PER CATEGORY
The accounting policies for financial instruments have been applied to the line items below:
Figures in millions unless otherwise stated
Deriva-
Loans
tives
and
Available used for
receiv-
Total
for sale hedging
ables
Loans Deriva-
and
tives
receiv- used for Available
ables hedging
for sale
Total
United States Dollars
Assets per balance sheet
South African Rand
314.1
110.0
383.8
357.6
314.1
–
–
–
473.0
473.0
93.3
279.2
6.9
253.7
–
–
–
–
2009
–
Investments
110.0
383.8
357.6
Environmental trust funds
Trade and other receivables
Cash and cash equivalents
2008
–
Investments
93.3
279.2
Environmental trust funds
Trade and other receivables
–
–
–
–
–
–
–
6.9
–
Financial instruments
–
253.7
Cash and cash equivalents
–
886.7
3,092.8
2,881.8
–
746.7
2,233.1
–
–
–
–
–
–
–
–
55.5
2,029.2
–
2,531.0
2,531.0
–
886.7
– 3,092.8
– 2,881.8
3,784.4
3,784.4
–
–
–
–
746.7
2,233.1
55.5
2,029.2
Other
Deriva-
tives
financial
used for
Total
liabilities
hedging
Deriva-
tives
used for
hedging
Other
financial
liabilities
United States Dollars
Liabilities per balance sheet
South African Rand
1,103.7
1,103.7
287.8
540.6
9.7
1.8
874.8
254.5
611.6
2.8
287.8
540.6
9.7
1.7
874.8
254.5
611.6
2.8
2009
Borrowings
Provisions
Trade and other payables
Bank overdraft
–
–
–
–
0.1
Financial instruments
2008
Borrowings
Provisions
Trade and other payables
Bank overdraft
–
–
–
–
–
–
–
–
0.4
–
–
–
–
8,895.5
2,319.6
4,357.6
77.9
13.6
6,998.1
2,036.5
4,891.3
21.9
Total
8,895.5
2,319.6
4,357.6
77.9
14.0
6,998.1
2,036.5
4,891.3
21.9
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
163
South African Rand
2009
2008
2,269.4
2,444.4
(143.8)
392.7
–
1,095.8
2,518.3
3,540.2
2,518.3
3,540.2
6.2
221.8
2,524.5
6.5
3,762.0
22.4
2,531.0
3,784.4
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:
N
o
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s
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C
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s
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i
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a
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F
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746.7
57.7
82.3
–
886.7
l
S
t
a
t
e
m
e
n
t
s
627.7
56.1
62.9
–
746.7
Figures in millions unless otherwise stated
United States Dollars
2008
2009
268.7
(16.0)
59.7
312.4
312.4
16. INVESTMENTS
Listed
Cost
Less: Other than temporary impairments
Net unrealised gain on revaluation
Carrying value
Market value
Unlisted
0.8
Carrying value and directors’ valuation
313.2
0.9
314.1
93.3
6.4
9.1
1.2
Total listed and unlisted investments
Loans advanced
Total investments
All investments are classified as available for sale. Details
of major investments are given on pages 210 and 211.
17. ENVIRONMENTAL TRUST FUNDS
Balance at beginning of the year
Contributions made during the year
Interest earned during the year
Translation adjustment
110.0
Balance at end of the year
292.5
–
150.0
442.5
442.5
27.7
470.2
2.8
473.0
87.8
7.7
8.7
(10.9)
93.3
The proceeds from these funds are intended to fund
environmental rehabilitation obligations of the Group’s South
African mines and they are not available for general purposes
of the Group. All income earned on these funds is re-invested
or spent to meet these obligations. The funds are invested
in money market, fixed deposits and government bonds.
These obligations are included in environmental rehabilitation
costs under long-term provisions. (Refer note 24.2)
125.7
99.5
2.0
227.2
18. INVENTORIES
Gold-in-process
Consumable stores
Other
143.5
121.0
2.0
266.5
Total inventories
1,156.7
975.3
16.4
1,005.9
796.0
16.3
2,148.4
1,818.2
The cost of consumable stores consumed during the year
and included in working cost amounted to R4.8 billion
(US$533.5 million).
164
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
Figures in millions unless otherwise stated
United States Dollars
2008
2009
64.7
44.0
0.4
0.8
4.5
23.9
131.0
1.2
0.4
8.3
137.1
19.1
38.6
1.1
4.6
26.8
144.0
0.8
–
11.7
19. TRADE AND OTHER RECEIVABLES
Trade receivables – gold sales
Trade receivables – other
Deposits
Interest receivable
Payroll receivables
Prepayments
Value added tax
Diesel rebate
Taxes receivable
Other
South African Rand
2009
2008
1,104.8
154.0
311.4
8.7
37.2
215.8
517.4
352.0
2.9
6.3
36.2
191.5
1,160.3
1,048.3
6.2
–
94.4
9.3
3.1
66.1
279.2
383.8
Total trade and other receivables
3,092.8
2,233.1
6.9
–
6.9
(0.1)
(1.7)
(1.8)
20. FINANCIAL INSTRUMENTS
Western Areas US dollars/rand purchases
Peru copper financial instruments
Total financial instruments
(0.4)
(13.6)
55.5
–
(14.0)
55.5
Western Areas US dollars/rand forward purchases
As a result of the US$551 million drawn down under the
original bridge loan facility to settle mainly the close-out of
the Western Areas gold derivative structure on 30 January
2007, US dollar/rand forward cover was purchased during the
March 2007 quarter to cover this amount. During financial
2008, US$233 million of this loan was repaid and the forward
cover was reduced to US$318 million to correspond with
the loan amount outstanding.
In June 2009, a further amount of US$44 million was repaid
against the loan, and the forward cover was reduced by
US$44 million. The balance of US$274 million was extended
to 15 July 2009, being the next interest repayment date on
the loan, at an average forward rate of R8.0893.
At 30 June 2009 the unrealised foreign exchange loss on
the revaluation of the US$274 million loan was R210 million.
This loss was offset by R210 million cumulative positive gains
on the forward cover purchased at an original rate of R7,3279.
During the June quarter R65 million of forward cover costs
were accounted for as part of interest, as this forward cover
has been designated as a hedging instrument.
Figures in millions unless otherwise stated
United States Dollars
2008
2009
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
165
South African Rand
2009
2008
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20. FINANCIAL INSTRUMENTS (continued)
Peru copper financial instruments
During June 2009, 8,705 tons of Cerro Corona’s expected
copper production for financial 2010 was sold forward for
monthly deliveries, starting on 24 June 2009 to 23 June 2010.
The average forward price for the monthly deliveries is
US$5,001 per ton.
An additional 8,705 tons of Cerro Corona’s expected
copper production for financial 2010 was hedged by
means of a zero cost collar, guaranteeing a minimum
price of US$4,600 per ton with full participation up
to a maximum price of US$5,400 per ton. The market to
market value of both instruments at the end of June 2009
was negative by R13.6 million (US$1.7 million).
253.7
(2.8)
250.9
357.6
(9.7)
347.9
21. CASH AND CASH EQUIVALENTS
Cash at bank and on hand
Bank overdraft
Total cash and cash equivalents
22. DEFERRED TAXATION
The detailed components of the net deferred taxation liability
which results from the differences between the carrying
amounts of assets and liabilities recognised for financial
reporting and taxation purposes in different accounting
periods are:
Deferred taxation liabilities
– Mining assets
– Investment in environmental trust funds
– Financial instruments
– Investments
– Inventories
– Deferred stripping costs
– Other
Gross deferred taxation liabilities
Deferred taxation assets
– Provisions
– Borrowings
– Tax losses
– Unredeemed capital expenditure
Net deferred taxation liabilities
Balance at beginning of the year
Transferred through the income statement
Deferred tax on mark-to-market adjustments accounted
for in equity
Translation adjustment
1 618.4
35.6
–
2.5
3.5
12.3
12.4
1 698.8
41.9
1.0
12.5
3.3
17.4
8.2
1,684.7
1,783.1
(101.5)
(13.9)
(293.4)
(598.2)
677.7
650.5
72.2
–
(45.0)
677.7
(115.7)
–
(281.3)
(625.8)
760.3
677.7
88.2
11.2
(16.7)
760.4
Balance at end of the year
i
F
n
a
n
c
a
i
l
S
t
a
t
e
m
e
n
t
s
:
N
o
t
e
s
t
o
t
h
e
C
o
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s
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i
d
a
t
e
d
F
n
a
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c
a
i
i
l
S
t
a
t
e
m
e
n
t
s
2,881.8
(77.9)
2,029.2
(21.9)
2,803.9
2,007.3
13,692.1
338.0
8.3
101.0
26.4
140.1
66.3
12,947.0
284.6
–
19.9
28.0
98.7
99.3
14,372.2
13,477.5
(932.3)
–
(2,267.3)
(5,043.8)
(811.8)
(110.9)
(2,347.5)
(4,785.4)
6,128.8
5,421.9
5,421.9
795.1
101.0
4,651.4
524.6
–
(189.2)
245.9
6,128.8
5,421.9
166
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
23. BORROWINGS
(a) Debt component of Mvela loan
On 17 March 2004, Mvelaphanda Gold (Pty) Limited (Mvela), a wholly owned subsidiary of Mvelaphanda Resources Limited,
advanced an amount of R4,139 million to GFI Mining South Africa (Pty) Limited (GFIMSA) at a fixed rate of 10.57% nominal
annual compounded semi-annually. Interest was payable semi-annually and the loan amount was repaid on 17 March 2009.
On the date the loan was repaid, Mvela was obliged to subscribe for new shares in GFIMSA such that after the subscription it
owned 15 per cent of the issued share capital of GFIMSA. The Mvelaphanda transaction further provided that for a period of
one year after the subscription for the shares, each of Gold Fields Limited and Mvela will be entitled to require the exchange of
these shares for 50,000,000 ordinary shares in the share capital of Gold Fields. On 17 March 2009 Mvela elected to exchange
the GFIMSA Shares for the 50,000,000 Gold Fields shares.
The net proceeds of the loan of R4,107 million (R4,139 million less R32 million of costs) were accounted for in two components,
namely a debt component and an equity component.
The debt component on initial recognition, included in long-term liabilities, is the present value of the future interest payments
discounted using a market related cost of debt. The residual amount, representing the value of the equity component, is
included in shareholders’ equity, inclusive of deferred tax.
The debt component of the Mvela loan was amortised against payments of interest on the loan of R4,139.0 million with a
proportionate amount of such payments recognised as interest on the debt component of the Mvela loan.
The loan was guaranteed by Gold Fields, Gold Fields Australia Pty Limited and Gold Fields Holdings Company (BVI) Limited
(GF Holdings).
(b) Split-tenor revolving credit facility
On 16 May 2007, GFIMSA, Orogen Holdings (BVI) Limited (Orogen) and Gold Fields Operations Limited (GF Operations)
entered into a US$750 million split-tenor revolving credit facility consisting of a US$250 million 364-day revolving tranche with
a twelve-month term out option (Facility A) and a US$500 million five-year revolving tranche (Facility B).
On 28 April 2008, Gold Fields exercised the term out option under Facility A which converted the full US$250 million advance
at that point into a term loan with a final maturity date of 16 May 2009. In terms of the facility agreement, Gold Fields had the
option to repay the loan under Facility A early in whole or in part by giving five days’ prior notice. Facility B matures on 16 May
2012. The purpose of the facilities was to refinance existing facilities and for general corporate purposes.
On 21 May 2007, GF Operations drew down US$50.8 million under Facility A and US$500.0 million under Facility B. In
addition, on 21 May 2007, Orogen drew down US$168 million under Facility A. On 25 September 2007, Orogen drew down
US$31.1 million under Facility A.
On 6 December 2007 Gold Fields utilised the proceeds from the sale of its Essakane exploration project in Burkina Faso
and its Choco 10 mine in Venezuela to repay Facility A in its entirety (US$250 million) and US$10 million of the proceeds to
partly repay Facility B. On 31 December 2007, Gold Fields utilised the proceeds from the issue of non-convertible redeemable
preference shares to further partly repay Facility B by US$172 million. Subsequent to this, Orogen drew down US$73 million
under Facility A on various dates and on 25 April 2008 GF Operations drew down US$177 million under Facility A to partly
repay its loan under Facility B, after which Gold Fields exercised the term out option under Facility A as detailed above. In
addition Orogen drew down a further US$121 million under Facility B subsequent to the term out option being exercised.
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G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
167
23. BORROWINGS (continued)
(b) Split-tenor revolving credit facility (continued)
On various dates during the current financial year Orogen drew down a further US$120 million under facility B. On 15 May
2009, GF Operations drew down US$118 million under Facility B to partly refinance its maturing loan under Facility A. The
balance of the GF Operations loan outstanding under Facility A in the amount of US$59 million was refinanced with the $311
million syndicated revolving loan facility, which is detailed below in c). Also on 15 May 2009, Orogen repaid US$16 million of
its portion of the maturing Facility A and refinanced the remaining US$57 million with the US$311 million syndicated revolving
loan facility.
The total borrowings at year end under Facility B are US$500 million (2008: US$262 million) and Facility A nil (US$250 million
as at 30 June 2008). The difference of US$1.5 million between the total borrowings above and the borrowings disclosed on
page 170 relates to the transaction costs deducted from the liability on initial measurement.
The loan under Facility A bore interest at LIBOR plus a margin of 0.25% per annum while the loan under Facility B bears interest
at LIBOR plus a margin of 0.30% per annum. Where the total utilisations under Facility A were equal to or greater than 50%, a
utilisation fee of 0.05% per annum was paid on the total amount of utilisation. Such utilisation fee was paid quarterly in arrears.
Borrowings under the Revolving Credit Facility are guaranteed by Gold Fields, GFIMSA, GF Holdings, Orogen and
GF Operations.
(c) Syndicated revolving loan facility
On 7 May 2009, GFIMSA, Orogen and GF Operations entered into a 364-day US$311 million syndicated revolving loan facility
with an option to extend the term on the same terms for an additional 364 days from the date of the original final maturity
(Extension Option). At any time prior to the date of final maturity, Gold Fields will have the option to convert all advances
outstanding under this facility into a term loan with a final maturity date being no more than 24 months after the signing date
of the facility (the Term Out Option). The Extension Option may not be exercised if the Term Out Option has been previously
exercised. The purpose of the facilities was to refinance existing facilities and for general corporate purposes.
On 15 May 2009, GF Operations and Orogen drew down US$59 million and US$57 million respectively under this facility to
refinance their respective portion of the loans maturing under Facility A of the split-tenor revolving credit facility. On 15 June
2009, GF Operations repaid US$44 million of its loan. The total borrowings at year end under the facility is US$72 million.
The facility bears interest at LIBOR plus a margin of 2.75% per annum. The borrowers are required to pay a quarterly
commitment fee of 1.10% per annum, payable on the undrawn portion of the facility. A term out fee of 0.25% flat is payable on
the date on which Gold Fields exercises the Term Out Option. This fee will be calculated on the amount of the facility which
has been converted into the term loan.
Borrowings under the syndicated revolving loan facility are guaranteed by Gold Fields, GFIMSA, GF Holdings, Orogen and GF
Operations.
(d) Project finance facility
On 14 November 2006, Gold Fields La Cima entered into a US$150 million project finance facility with a number of lenders.
The purpose of the facility was to finance the project costs related to the development of the Cerro Corona copper-gold
porphyry deposit located in the Hualgayoc province in the Cajamarca region in northern Peru.
As at 30 June 2009, Gold Fields La Cima has drawn down US$150 million (2008: US$150 million) under the Project Finance
Facility. The loan bears interest at a margin over LIBOR of 0.45% during the pre-completion phase (i.e. prior to the financial
completion date) and between 1.25% and 1.75% thereafter. Scheduled principal payments shall be made in 16 semi-annual
instalments of various amounts ranging from 4.75% to 6.75% of the principal amount, beginning 30 June 2009. The final
instalment is due on the tenth anniversary of the signing date.
168
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
23. BORROWINGS (continued)
(d) Project finance facility (continued)
During the pre-completion phase the loan is guaranteed by Gold Fields and Gold Fields Corona (BVI) Limited (a wholly owned
subsidiary of Gold Fields). The facility is secured by, among other things, pledges of and mortgages over the assets and
properties of Gold Fields La Cima.
(e) Preference shares
On 24 December 2007, Gold Fields Limited issued R1.2 billion of non-convertible redeemable preference shares. The dividend
rate payable is a floating rate that increases from 22% up to 61% of the prime lending rate quoted by FirstRand Bank Limited
(the Prime Rate) over the life of the Preference Shares. Dividends accrue quarterly and are rolled up until the redemption date.
The purpose of the preference shares was to refinance existing credit facilities.
On 10 October 2008, R600 million of the R1,200 million preference shares was redeemed with an attributable dividend of
R23.2 million. The balance of the preference shares are redeemable at the option of Gold Fields.
The preference shares mature on 24 January 2011 and have been guaranteed by GFIMSA, Orogen, GF Operations and GF
Holdings.
(f) Commercial paper loan
Gold Fields established its R10 billion Domestic Medium Term Note Programme (the Programme) on 6 April 2009. Under the
Programme Gold Fields may from time to time issue notes denominated in any currency. The notes will not be subject to any
minimum or maximum maturity and the maximum aggregate nominal amount of all notes from time to time outstanding will
not exceed R10 billion. The Programme has been registered with the Bond Exchange of South Africa Limited (BESA) and the
notes issued can be listed on BESA or not.
Under the Programme Gold Fields issued listed notes on 9 April 2009 and 4 June 2009 totalling R568 million and R575 million
respectively. The different notes issued mature either three months or six months from date of issue and bear interest at
Johannesburg Interbank Agreed Rate (JIBAR) plus a margin ranging from 0.675% to 1.000% per annum.
The total notes issued at year end under the Programme is R1,143 million.
(g)
Industrial Development Corporation loan
On 28 May 2004, Living Gold (Pty) Limited (Living Gold), a subsidiary of GFIMSA, entered into an agreement with the Industrial
Development Corporation of South Africa Limited (IDC) in terms of which the IDC agreed to provide a loan facility of R16.6
million. On 24 November 2004, Living Gold drew down the full amount of the facility and on 1 July 2006 the IDC converted
R8.1 million of the outstanding loan to equity. On 1 July 2008 the remaining R8.8 million was converted to equity.
(h) Short-term syndicated facility
Gold Fields Ghana Limited entered into a US$20 million syndicated facility for 12 months. The facility is to be used for working
capital requirements associated with the expansion of the carbon-in-leach (CIL) plant at the Tarkwa mine and related capital
expenditure. The loan bears interest at LIBOR plus a margin of 3.0% per annum.
During December 2008, Tarkwa drew down US$20 million under the loan. Scheduled principal payments shall be made in
monthly instalments of US$2 million for the first four months and US$4 million for the last three months beginning 30 June
2009. The final instalment is due on 31 December 2009.
(i) Other loans
R500 million revolving credit facility
On 21 August 2007, GFIMSA entered into a R500 million 364-day revolving credit facility. The facility was used for general
corporate purposes. The facility bore interest at JIBAR plus a margin of 0.70% per annum.
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
169
23. BORROWINGS (continued)
(i) Other loans (continued)
R500 million revolving credit facility (continued)
On 24 August 2007, GFIMSA drew down R250 million under the facility. On 28 December 2007, GFIMSA drew down an
additional R250 million. On 24 June 2008, the R500 million was repaid in full. Subsequently R500 million was drawn down
under this facility, and was fully repaid on 19 August 2008. The facility expired on 21 August 2008. On 22 September 2008,
this facility was renegotiated as a short term facility expiring on 21 October 2008.
On 11 November 2008, GFIMSA entered into a new R500 million 364-day revolving credit facility. The facility is to be used for
general corporate and working capital requirements. The facility bears interest at JIBAR plus a margin of 1.20% per annum. On
15 May 2009 R500 million was drawn down under the facility with no repayments subsequent to this date. Borrowings under
the facility are guaranteed by Gold Fields Limited.
R1 billion revolving credit facility
On 31 January 2008, GFIMSA, GF Operations, Orogen and GFL Mining Services Limited entered into a R1 billion
364-day revolving credit facility effective 15 May 2008. The facility was to be used for capital expenditure in respect of gold
mining projects, general corporate and working capital requirements. Borrowings under the facility were guaranteed by Gold
Fields, GF Holdings, GF Operations, Orogen and GFIMSA and bore interest at JIBAR plus 0.70% per annum. Gold Fields paid
a quarterly commitment fee of 0.15% per annum on any undrawn amounts under the facility.
The Group utilised the abovementioned facility with other uncommitted loan facilities from some of the major banks to fund
the capital expenditure and working capital requirements of the South African operations. The total of R8,039 million (2008:
R1,260.2 million) borrowed under the combination of these loan facilities was repaid in part within the year from cash profits
generated by the operations.
R1.5 billion long-term revolving credit facility
On 6 May 2009, GFIMSA and GF Operations entered into a R1.5 billion five year revolving credit facility effective 10 June 2009.
The facility is to be utilised for capital expenditure, general corporate and working capital requirements and the refinancing of
existing debt.
The facility is unutilised at year end and bears interest at JIBAR plus a margin of 2.95% per annum. The borrowers are required
to pay a commitment fee of 0.75% per annum on the undrawn and un-cancelled amounts of the facility, calculated and payable
semi-annually in arrears.
The facility matures on 10 June 2014. Borrowings under the facility are guaranteed by Gold Fields, GF Holdings,
GF Operations, Orogen and GFIMSA.
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170
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
Figures in millions unless otherwise stated
United States Dollars
2008
2009
23. BORROWINGS (continued)
(a) Debt component of Mvela loan
595.2
(355.6)
595.2
(355.6)
Loan advanced
Equity component
South African Rand
2009
2008
4,107.0
4,107.0
(2,453.6)
(2,453.6)
239.6
239.6
Debt component on initial recognition
1,653.4
1,653.4
117.4
(48.9)
(8.0)
60.5
717.3
225.1
60.5
(54.2)
(6.3)
Balance at the beginning of year
Loan repayments during the year
Translation adjustment
–
Balance at end of year
510.5
138.0
(b) Split-tenor revolving credit facility
Balance at the beginning of year
Loan advanced
(431.9)
(150.0)
Loan repayments during the year
–
–
Translation adjustment
510.5
498.5
Balance at end of year
–
–
–
–
–
127.0
23.0
–
(c) Syndicated revolving loan facility
–
Balance at the beginning of year
116.0
(44.0)
Loan advanced
Loan repayments during the year
–
Translation adjustment
72.0
Balance at end of year
(d) Project finance facility
150.0
Balance at the beginning of year
–
–
Loan advanced
Translation adjustment
150.0
150.0
Balance at end of year
165.1
2.7
–
(15.4)
152.4
–
–
–
–
(e) Preference shares
Balance at the beginning of year
Preference share interest
Preference share repayments during the year
Translation adjustment
152.4
9.8
(63.5)
(13.8)
84.9
Balance at end of year
(f) Commercial paper loan
–
Balance at the beginning of year
133.5
8.3
Loan advanced
Translation adjustment
141.8
Balance at end of year
484.2
(484.2)
–
–
839.6
(355.4)
–
484.2
4,084.0
1,325.2
5,128.7
1,718.7
(1,299.2)
(3,001.6)
(92.0)
238.2
4,018.0
4,084.0
–
993.0
(376.6)
(36.1)
580.3
–
–
–
–
–
1,200.0
–
9.0
908.1
156.9
135.0
1,209.0
1,200.0
1,219.5
1,200.0
87.9
(623.2)
–
19.5
–
–
684.2
1,219.5
–
1,143.0
–
1,143.0
–
–
–
–
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G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
171
Figures in millions unless otherwise stated
United States Dollars
2008
2009
2.3
(1.1)
(0.1)
1.1
–
–
–
–
23. BORROWINGS (continued)
(g)
Industrial Development Corporation loan
Balance at the beginning of year
Capitalisation of loan to minority interests
Translation adjustment
1.1
(1.1)
–
–
Balance at end of year
–
20.0
–
(h) Short-term syndicated facility
Balance at the beginning of year
Loan advanced
Translation adjustment
20.0
Balance at end of year
(i) Other loans
0.6
173.3
(173.7)
–
0.2
904.8
(736.0)
(32.5)
Balance at the beginning of year
Loans advanced
Loans repaid during the year
Translation adjustment
0.2
136.5
Balance at end of year
874.7
(60.5)
814.2
1,103.7
(317.8)
Gross borrowings
Current portion included in borrowings
785.9
Total non-current borrowings
814.2
60.5
874.7
1,103.7
–
1,103.7
660.5
214.3
740.5
363.2
874.7
1,103.7
187.5
183.8
425.1
207.5
371.3
632.6
The exposure of the Group’s borrowings to interest rate
changes and the contractual repricing dates at the balance
sheet dates are as follows:
Six months or less
Fixed rate with no exposure to repricing
The carrying amounts of the Group’s borrowings are
denominated in the following currencies:
US dollar
Rand
The Group has the following undrawn borrowing facilities:
Committed
Uncommitted
All of the above facilities have floating rates. Committed
facilities amounting to R1,500.0 million expire on 10 June
2014 and the remaining balance expires 7 May 2010 with
an option to extend for a further year. The uncommitted
facilities have no expiry dates and are open ended.
South African Rand
2009
2008
8.8
(8.8)
–
–
–
203.6
(42.4)
161.2
8.8
–
–
8.8
–
–
–
–
1.6
8,039.0
(6,940.8)
–
3.9
1,260.2
(1,262.5)
–
1,099.8
1.6
8,895.5
(2,561.2)
6,998.1
(484.2)
6,334.3
6,513.9
8,895.5
–
6,513.9
484.2
8,895.5
6,998.1
5,968.5
2,927.0
5,284.0
1,714.1
8,895.5
6,998.1
3,426.0
1,672.4
1,500.0
1,470.0
5,098.4
2,970.0
172
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
Figures in millions unless otherwise stated
United States Dollars
2008
2009
South African Rand
2009
2008
24. PROVISIONS
24.1 Post-retirement health care costs
2.2
0.4
2.6
2.3
0.3
2.6
Gold Fields Group (excluding South Deep) post-retirement
health care costs
South Deep post-retirement health care costs
Gold Fields Group post-retirement health care costs
18.3
2.2
20.5
17.6
3.4
21.0
2.1
–
2.1
–
–
2.1
2.3
0.3
(0.2)
(0.2)
2.2
2.4
–
2.4
–
–
2.4
2.2
0.2
(0.1)
–
2.3
Gold Fields Group (excluding South Deep) post-
retirement health care costs
The Group has certain liabilities to subsidise the contributions
payable by certain pensioners and dependants of
ex-employees on a pay-as-you-go basis. The remaining
obligation was actuarially valued at 30 June 2009 and the
outstanding contributions will be funded over the lifetime
of these pensioners and dependants.
The following table sets forth the funded status and
amounts recognised by the Group for post-retirement
health care costs:
Actuarial present value
Plan assets at fair value
Accumulated benefit obligation in excess
of plan assets
Unrecognised prior service costs
Unrecognised actuarial (gains)/losses
Post-retirement health care liability
Benefit obligation reconciliation
Balance at beginning of year
Interest charge
Payments during the year
Translation adjustments
Balance at end of year
The obligation has been valued using the projected unit
credit funding method on past service liabilities. The valuation
assumes a health care cost inflation rate of 7.0% per annum
(2008: 8.0%) and a discount rate of 8.375% per annum
(2008: 10.0%). Assumed health care cost trend rates have a
significant impact on the amounts reported for the health
care plans.
A one percentage point increase in assumed health care
trend rates would have increased interest cost for 2009 by
R0.2 million (9.8%) (2008: R 0.2 million (10.5%)). The effect
of this change on the accumulated post-retirement health
care benefit obligation at 30 June 2009 would have been
an increase of R2.0 million (10.2%) (2008: R1.5 million (9.4%).
19.2
–
19.2
–
–
19.2
17.6
1.6
(0.9)
–
18.3
16.5
–
16.5
–
–
16.5
16.8
2.3
(1.5)
–
17.6
Figures in millions unless otherwise stated
United States Dollars
2008
2009
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
173
South African Rand
2009
2008
S
e
c
t
i
o
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3
:
A
n
n
u
a
l
i
F
n
a
n
c
a
i
l
S
t
a
t
e
m
e
n
t
s
:
N
o
t
e
s
t
o
t
h
e
C
o
n
s
o
l
i
d
a
t
e
d
F
n
a
n
c
a
i
i
l
S
t
a
t
e
m
e
n
t
s
2.7
–
2.7
–
–
2.7
4.2
0.3
(1.1)
–
3.4
2.0
–
2.0
–
–
2.0
3.4
0.2
(1.4)
–
2.2
24. PROVISIONS (continued)
24.1 Post-retirement health care costs (continued)
A one percentage point decrease in assumed health care
trend rates would have decreased interest cost for 2009 by
R0.1 million (8.5%) (2008: R0.1 million (8.9%)). The effect of
this change on the accumulated post-retirement health care
benefit obligation at 30 June 2009 would have been a
decrease of R1.7 million (8.7%) (2008: R1.3 million (8.1%)).
South Deep post-retirement health care costs
As part of the acquisition of South Deep, the post-retirement
health care cost liability was assumed. The Group has certain
liabilities to provide fixed monthly post-retirement medical
benefits to certain pensioners and dependants of
ex-employees. The obligation was actuarially valued at
30 June 2009 and the outstanding contributions will be
funded until 31 December 2011.
The following table sets forth the funded status and
amounts recognised by the Group for post-retirement
health care costs:
Actuarial present value
Plan assets at fair value
Accumulated benefit obligation in excess of plan assets
Unrecognised prior service costs
Unrecognised actuarial (gains)/losses
0.2
–
0.2
–
–
0.2
Post-retirement health care liability
0.5
–
(0.2)
–
0.3
Benefit obligation reconciliation
Balance at beginning of year
Interest charge
Payments during the year
Translation adjustments
Balance at end of year
The obligation has been valued using the projected unit
credit funding method on past service liabilities. The valuation
assumes a health care cost inflation rate of 7.0% per annum
(2008: 8.0%) and a discount rate of 8.375% per annum
(2008: 10.0%).
An increase or decrease in assumed health care trend rates
would not have affected the interest cost for 2009 or 2008
as the monthly contributions are fixed.
A change in the medical inflation assumption does not affect
the employer liability as the subsidy does not escalate. The
monthly contributions will remain constant.
0.3
–
0.3
–
–
0.3
0.6
–
(0.2)
0.1
0.5
174
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
Figures in millions unless otherwise stated
United States Dollars
2008
2009
193.1
55.7
8.1
6.5
(4.0)
(7.5)
251.9
22.7
14.4
4.2
(4.0)
(7.9)
24. PROVISIONS (continued)
24.2 Environmental rehabilitation costs
Balance at beginning of the year
Additional provision due to new disturbances
Inflation charge
Interest charge
Payments against provision
Translation adjustments
South African Rand
2009
2008
2,015.5
204.4
129.4
38.1
(36.3)
(83.2)
1,380.5
404.8
59.0
47.3
(29.3)
153.2
251.9
281.3
Balance at end of year
2,267.9
2,015.5
South African, Ghanaian, Australian and Peruvian mining
companies are required by law to undertake rehabilitation
works as part of their ongoing operations. These
environmental rehabilitation costs are funded as follows:
– Ghana – reclamation bonds underwritten by banks to
secure estimated costs of rehabilitation;
– South Africa – contributions into environmental trust funds
(Note 17);
– Australia – unconditional bank-guaranteed performance
bonds to secure the estimated costs; and
– Peru – guarantees with annual deposits for proper
compliance with the Mine Closure Plan.
The expected timing of the cash outflows in respect of the
provision is on the closure of the various mining operations.
However, certain current rehabilitation costs are charged to
this provision as and when incurred.
2008
Inflation
rate %
Discount
rate %
The provision is calculated using the following rates:
rate %
rate %
2009
Discount
Inflation
9.0
4.2
3.0
5.4
10.1 – 12.6
4.6 – 5.0
7.6
6.0
South Africa
Ghana
Australia
Peru
7.0 – 8.7
4.1 – 4.4
6.2 – 6.3
6.7
7.0
3.0
2.5
5.4
S
e
c
t
i
o
n
3
:
A
n
n
u
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l
i
F
n
a
n
c
a
i
l
S
t
a
t
e
m
e
n
t
s
:
N
o
t
e
s
t
o
t
h
e
C
o
n
s
o
l
i
d
a
t
e
d
F
n
a
n
c
a
i
i
l
S
t
a
t
e
m
e
n
t
s
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
175
Figures in millions unless otherwise stated
United States Dollars
2008
2009
24. PROVISIONS (continued)
24.3 Other long-term provisions
Kunter Wasi Road
Balance at end of the year
–
–
3.9
3.9
South African Rand
2009
2008
31.2
31.2
–
–
Gold Fields La Cima has formally declared their intention to
jointly participate with Minera Yanacocha S.R.L. in financing
the Kunter Wasi Road as an alternative route from the
coast to the Cerro Corona Mine. Gold Fields La Cima agreed
to pay a maximum of 20% of the estimated cost of the
project amounting to US$11.5 million, which is commencing in
July 2009 and is scheduled to be completed by June 2011.
254.5
287.8
Total provisions
2,319.6
2,036.5
167.2
296.0
47.2
96.0
5.2
611.6
647.3
266.6
79.5
(17.9)
(4.6)
191.6
283.9
50.7
–
14.4
540.6
205.7
261.2
91.6
(14.5)
(1.3)
25. TRADE AND OTHER PAYABLES
Trade payables
Accruals and other payables
Leave pay accrual
Funds received for shares to be issued
Interest payable on loans
Total accounts payable
26. CASH GENERATED BY OPERATIONS
Profit for the year
Taxation
Interest paid
Interest received
Dividends received
1,544.5
2,288.6
408.5
–
116.0
1,337.3
2,367.5
376.9
768.0
41.6
4,357.6
4,891.3
1,854.1
2,353.5
825.3
(131.0)
(11.5)
4,706.6
1,937.7
578.4
(130.3)
(33.6)
970.9
542.7
Earnings before non-cash items
4,890.4
7,058.8
416.2
8.1
6.5
(8.7)
7.0
(4.6)
(205.0)
20.7
2.7
(8.0)
(10.7)
459.7
14.4
4.2
(9.1)
Non-cash and other adjusting items:
Amortisation and depreciation
Inflation adjustment to rehabilitation liability
Interest adjustment to rehabilitation liability
Interest received – environmental trust funds
134.2
Impairment of assets
(0.5)
16.1
33.7
11.3
(8.7)
(14.6)
Profit on disposal of property, plant and equipment
Profit/(loss) on disposal of investments
Share-based payments
Preference share and other non-cash interest
Finance costs capitalised
Other
4,142.3
3,025.6
129.4
38.1
(82.3)
1,209.5
(4.3)
145.1
303.4
102.0
(78.5)
(131.6)
59.0
47.3
(62.9)
51.2
(33.6)
(1,490.4)
150.6
19.5
(57.9)
(78.5)
1,195.1
1,183.4
Total cash generated by operations
10,663.5
8,688.7
176
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
Figures in millions unless otherwise stated
United States Dollars
2008
2009
27. CHANGE IN WORKING CAPITAL
(14.6)
(55.3)
106.0
(48.9)
(127.0)
44.5
Inventories
Accounts receivable
Accounts payable
South African Rand
2009
2008
(441.0)
(1,144.3)
401.5
(106.1)
(402.2)
770.6
36.1
(131.4)
Total change in working capital
(1,183.8)
262.3
(76.3)
(194.4)
123.1
4.1
28. TAXATION PAID
(123.1)
(173.0)
98.2
Amount owing at beginning of year
SA and foreign current taxation
Amount owing at end of year
–
Translation
(143.5)
(197.9)
Total taxation paid
29. DIVIDENDS PAID
(984.6)
(1,558.4)
791.8
(61.6)
(545.5)
(1,413.1)
984.6
50.6
(1,812.8)
(923.4)
(142.5)
(142.5)
(121.2)
Dividends per statement of shareholders’ equity
(981.0)
(1,044.8)
(121.2)
Total dividends paid
(981.0)
(1,044.8)
30. RETIREMENT BENEFITS
All employees are members of various defined contribution
retirement schemes.
Contributions to the various retirement schemes are fully
expensed during the year in which they are incurred. The
cost of providing retirement benefits for the year amounted
to R515.6 million (2008: R494.2 million).
932.3
167.5
1.1
1.6
–
39.6
958.7
131.4
1.7
3.8
–
3.1
31. COMMITMENTS
Capital expenditure
– authorised
– contracted for
Operating leases:
– within one year
– later than one and not later than five years
– later than five years
Guarantees and other commitments
7,727.1
1,058.9
7,458.3
1,340.2
13.8
30.3
–
25.1
8.7
12.4
–
316.7
S
e
c
t
i
o
n
3
:
A
n
n
u
a
l
i
F
n
a
n
c
a
i
l
S
t
a
t
e
m
e
n
t
s
:
N
o
t
e
s
t
o
t
h
e
C
o
n
s
o
l
i
d
a
t
e
d
F
n
a
n
c
a
i
i
l
S
t
a
t
e
m
e
n
t
s
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
177
32. CONTINGENT LIABILITIES
Randgold & Exploration summons
On 21 August 2008, Gold Fields Operations received a summons from Randgold and Exploration Company Limited, or R&E,
and African Strategic Investment (Holdings) Limited. The summons claims that during the period that Gold Fields Operations
was under the control of Brett Kebble, Roger Kebble and others, Gold Fields Operations was allegedly part of a scam whereby
JCI Limited unlawfully disposed of shares owned by R&E in Randgold Resources Limited, or Resources, and Afrikander Lease
Limited, now Uranium One.
Gold Fields Operations’ preliminary assessment was that it had strong defences to these claims and accordingly, Gold Fields
Operations’ attorneys were instructed to vigorously defend the claims. Werksmans Attorneys have been so instructed. Much
of the preparatory work is still being undertaken and pleadings have not yet closed.
The claims have been computed in various ways. The highest claims have been computed on the basis of the highest prices
of Resources and Uranium One between the dates of the alleged thefts and March 2008 (approximately R11 billion). The
alternative claims have been computed on the basis of the actual amounts allegedly received by Gold Fields Operations to
fund its operations (approximately R519 million).
It should be noted that the claims lie only against Gold Fields Operations, whose only interest is a 50% stake in the South Deep
Mine.
World Gold Council
Gold Fields is a member of the World Gold Council. In terms of the membership agreement, all members are responsible
for certain costs, including ongoing costs on a three year rolling basis, winding up costs, if applicable, and various other
contingent liabilities. Apportionment of liabilities to individual members, should they arise, is done proportionate to the
member’s production relative to the total production of all members. To date, no claims have been made on Gold Fields.
33. EVENTS AFTER THE BALANCE SHEET DATE
Disposal of stake in Sino Gold
On 3 June 2009, Gold Fields Limited reached agreement to sell its 19.9% stake in Sino Gold Mining Limited to Eldorado
Gold Corporation for a total consideration of approximately US$282 million payable in Eldorado shares which were received
on 27 July 2009. Gold Fields received a share exchange ratio of 48 Eldorado shares for every 100 Sino Gold shares, which
resulted in Gold Fields holding 27,824,654 Eldorado shares or approximately 7% of the outstanding shares of Eldorado on a
fully diluted basis.
In addition, Gold Fields holds a top-up right for a period of 18 months, which will apply should Eldorado purchase an additional
5% or more of the outstanding shares of Sino Gold and the sellers in that transaction realise a consideration ratio in excess of
the share exchange ratio of 0.48 Eldorado shares per Sino Gold share received by Gold Fields.
On 3 September 2009, Gold Fields disposed of its holding in Eldorado for a total consideration of CAD323 million (approximately
US$293 million).
Acquisition of Glencar Mining
On 24 July 2009, Gold Fields Limited, through a wholly owned subsidiary, reached agreement with Glencar Mining Plc (Glencar)
on the terms of a recommended cash offer to acquire the entire issued share capital of Glencar for cash. On 7 August 2009, the
offer document was posted to eligible Glencar shareholders who had until 4 September to accept the offer. On 7 September,
Gold Fields announced that it had received 83.1 per cent of acceptances and therefore 83.1 per cent of the issued share capital
of Glencar. All conditions of the offer were satisfied or waived and therefore the offer was declared unconditional in all respects.
Gold Fields has also taken control of the board of Glencar with the appointment of three new directors.
Termination of royalty over St Ives
On 27 August 2009, an agreement was executed in terms of which the royalty payable by St Ives Gold Mining Company (Pty)
Limited (St Ives) to Morgan Stanley Bank’s subsidiaries was terminated for a consideration of A$308 million.
When Gold Fields acquired St Ives in late 2001, the total consideration included the royalty, which was subsequently acquired
by subsidiaries of Morgan Stanley Bank. The royalty comprised two parts (i) a payment equal to 4% of the revenue from all
future gold produced by St Ives; and (ii) provided that the gold price exceeds A$600/oz, a payment equal to 10% of the
revenue difference between the spot gold price expressed in Australian dollars per ounce and a price of A$600/oz calculated
on all future ounces produced by St Ives. Both components of the royalty were payable on all future production from St Ives
and thus presented an uncapped liability.
The punitive impact of the royalty on the costs of St Ives, which equated to approximately A$100 per ounce at current gold
prices, has become clear over the past year both in terms of its adverse impact on the operating margin of the mine, as well
as St Ives’ ability to convert further ounces into Reserves.
Final dividend
On 5 August 2009, Gold Fields declared a dividend of 80 cents per share.
178
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
34. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
The fair value of a financial instrument is defined as the amount at which the instrument could be exchanged in an arm’s-length
transaction between willing parties. The estimated values of the Group’s financial instruments are:
Financial assets
Cash and cash equivalents
Financial instruments
Trade and other receivables
Environmental trust fund
Investments
Financial liabilities
Trade and other payables
Current portion of borrowings
Financial instruments
Borrowings
Bank overdraft
Financial assets
Cash and cash equivalents
Financial instruments
Trade and other receivables
Environmental trust fund
Investments
Financial liabilities
Trade and other payables
Current portion of borrowings
Financial instruments
Borrowings
Bank overdraft
30 June 2009
R million
30 June 2008
R million
Carrying
amount
Fair
value
Carrying
amount
Fair
value
2,881.8
–
3,092.8
886.7
2,531.0
4,357.6
2,561.2
14.0
6,334.3
77.9
2,881.8
–
3,092.8
886.7
2,531.0
4,357.6
2,561.2
14.0
6,334.3
77.9
2,029.2
55.5
2,233.1
746.7
3,784.4
4,891.3
484.2
–
6,513.9
21.9
2,029.2
55.5
2,233.1
746.7
3,784.4
4,891.3
506.7
–
6,513.9
21.9
US$ million
US$ million
357.6
–
383.8
110.0
314.1
540.6
317.8
1.8
785.9
9.7
357.6
–
383.8
110.0
314.1
540.6
317.8
1.8
785.9
9.7
253.7
6.9
279.2
93.3
473.0
611.6
60.5
–
814.2
2.8
253.7
6.9
279.2
93.3
473.0
611.6
63.3
–
814.2
2.8
The following methods and assumptions were used to estimate the fair value of each class of financial instrument:
Trade and other receivables, payables and cash and cash equivalents
The carrying amounts approximate fair values due to the short maturity of these instruments.
Investments, environmental trust fund and long- and short-term liabilities
The fair value of publicly traded instruments is based on quoted market values. The environmental trust fund is stated at fair
value based on the nature of the fund’s investments. The fair value of short-term and long-term borrowings approximates their
carrying amount as the impact of credit risk is included in the measurement of carrying amounts.
Financial instruments
The fair value of financial instruments is estimated based on ruling market prices, volatilities and interest rates at 30 June 2009.
All derivatives are carried on the balance sheet at fair value.
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
179
35. RISK MANAGEMENT ACTIVITIES
In the normal course of its operations, the Group is exposed to commodity price, currency, interest rate, liquidity, equity price
and credit risk. In order to manage these risks, the Group has developed a comprehensive risk management process to
facilitate control and monitoring of these risks.
Controlling and managing risk in the Group
Gold Fields has policies in areas such as counterparty exposure, hedging practices and prudential limits which have been
approved by Gold Fields’ Board of Directors. Management of financial risk is centralised at Gold Fields’ treasury department,
which acts as the interface between Gold Fields’ operations and counterparty banks. The treasury department manages
financial risk in accordance with the policies and procedures established by the Gold Fields Board of Directors and Executive
Committee.
Gold Fields’ Audit Committee has approved dealing limits for money market, foreign exchange and commodity transactions,
which Gold Fields’ treasury department is required to adhere to. Among other restrictions, these limits describe which
instruments may be traded and demarcate open position limits for each category as well as indicating counterparty credit
related limits. The dealing exposure and limits are checked and controlled each day and reported to the Chief Financial Officer.
The objective of Treasury is to manage all financial risks arising from the Group’s business activities in order to protect profit
and cash flows. Treasury activities of Gold Fields Limited and its subsidiaries (the Group) are guided by the Treasury Policy,
the Treasury Framework as well as domestic and international financial market regulations. Treasury activities are currently
performed within the Treasury Framework with appropriate resolutions from the Board of Gold Fields Limited, which are
reviewed and approved annually by the Audit Committee.
The financial risk management objectives of the Group are defined as follows:
Liquidity risk management: The objective is to ensure that the Group is able to meet its short-term commitments through
the effective and efficient usage of credit facilities.
Currency risk management: The objective is to maximise the Group’s profits by minimising currency fluctuations.
Funding risk management: The objective is to meet funding requirements timeously and at competitive rates by adopting
reliable liquidity management procedures.
Investment risk management: The objective is to achieve optimal returns on surplus funds.
Interest rate risk management: The objective is to identify opportunities to prudently manage interest rate exposures.
Counterparty exposure: The objective is to only deal with approved counterparties that are of a sound financial standing and
who have an official credit rating. The Group is limited to a maximum investment of between 4 and 5 per cent of the financial
institutions’ equity, which is dependent on the institutions’ credit rating. This credit rating is Fitch Ratings’ short-term credit
rating for financial institutions.
Commodity price risk management: Commodity risk management takes place within limits and with counterparties as
approved in the Treasury Framework.
Operational risk management: The objective is to implement controls to adequately mitigate the risk of error and/or fraud.
Banking relations management: The objective is to maintain relationships with credible financial institutions and ensure that
all contracts and agreements related to risk management activities are co-ordinated and consistent throughout the Group and
that they comply where necessary with all relevant regulatory and statutory requirements.
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180
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
35. RISK MANAGEMENT ACTIVITIES (continued)
Credit risk
Credit risk represents risk that an entity will suffer a financial loss due to the other party of a financial instrument not discharging
its obligation.
The Group has reduced its exposure to credit risk by dealing with a number of counterparties. The group approves these
counterparties according to its risk management policy and ensures that they are of good credit quality.
Accounts receivable are reviewed on a regular basis and a provision for impairment is raised when they are not considered
recoverable.
The combined maximum credit risk exposure of the Group is as follows:
On balance sheet
Financial instruments
Investments
Non-current assets
Trade and other receivables
Cash and cash equivalents
Off balance sheet
Guarantees
SA Rand
US Dollars
2009
2008
2009
2008
–
6.5
886.7
1,716.7
2,881.8
55.5
22.4
746.7
993.3
2,029.2
–
0.9
110.0
213.0
357.6
6.9
2.8
93.3
124.3
253.7
–
270.9
–
33.9
Trade debtors mainly comprise banking institutions purchasing gold bullion. Normal terms are two working days. These
debtors are in a sound financial position and no impairment has been recognised.
Other receivables that are past due but not impaired total R19.9 million (2008: R29.2 million). As of 30 June 2009, other
receivables of R52.0 million (2008: R37.3 million) are considered impaired and are provided for.
Concentration of credit risk on cash and cash equivalents and non-current assets is considered minimal due to the
abovementioned investment risk management and counterparty exposure risk management policies.
Liquidity risk
In the ordinary course of business, the Group receives cash proceeds from its operations and is required to fund working
capital and capital expenditure requirements. The cash is managed to ensure surplus funds are invested to maximise returns
whilst ensuring that capital is safeguarded to the maximum extent possible by investing only with top financial institutions.
Uncommitted borrowing facilities are maintained with several banking counterparties to meet the Group’s normal and
contingency funding requirements.
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
181
35. RISK MANAGEMENT ACTIVITIES (continued)
The following are the contractually due undiscounted cash flows resulting from maturities of all financial liabilities, including
interest payments:
2009
Trade payables
Borrowings
– US$ borrowings
– Capital
– Interest
– ZAR borrowings
– Capital
– Interest
Environmental rehabilitation costs4
Post-retirement health care costs
Financial instruments5
– Contractual outflow
– Inflow if US$ were to be sold
Bank overdraft
Within Between one
one year and five years
R million
R million
After
five years
R million
Total
R million
4,357.6
–
–
4,357.6
318.4
48.7
5,181.6
111.3
480.6
16.2
5,980.6
176.2
2,242.9
34.4
–
–
2,216.4
(2,208.4)
77.9
600.0
231.4
–
–
–
–
2,754.4
20.5
–
–
–
–
–
–
2,842.9
265.8
2,754.4
20.5
2,216.4
(2,208.4)
77.9
Total
7,087.9
6,124.3
3,271.7
16,483.9
2008
Trade payables
Borrowings
– US$ borrowings
– Capital
– Interest
– ZAR borrowings
– Capital
– Interest
Environmental rehabilitation costs4
Post-retirement health care costs
Financial instruments5
– Contractual outflow
– Inflow if US$ were to be sold
Bank overdraft
4,123.3
–
–
4,123.3
96.0
196.5
484.2
17.9
–
–
2,495.6
(2,544.0)
21.9
4,600.0
455.9
1,210.4
399.1
–
–
–
–
–
600.0
43.8
5,296.0
696.2
–
–
2,542.8
21.0
–
–
–
1,694.6
417.0
2,542.8
21.0
2,495.6
(2,544.0)
21.9
Total
4,891.4
6,665.4
3,207.6
14,764.4
Notes:
1 Spot rate: R8.06 = US$1.00 (2008: R8.00 = US$1.00)
2 US$ borrowings – Spot LIBOR (1 month fix) rate adjusted by specific facility agreement: 0.31125% (2008: 2.4819%)
3 ZAR borrowings – Spot Prime rate adjusted by specific facility agreement: 11.0 % (2008: 15.50%).
4 In South Africa, R886.7 million of the environmental rehabilitation costs is funded through the environmental trust funds.
5 Financial instruments relate to the US$/Rand forward cover purchased (note 20). It is anticipated that the cover will be extended until repayment of the loan
facility. The inflow is based on the Spot Rate R8.06 = US$1.00 (2008: R8.00 = US$1.00).
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182
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
35. RISK MANAGEMENT ACTIVITIES (continued)
2009
Trade payables
Borrowings
– US$ borrowings
– Capital
– Interest
– ZAR borrowings
– Capital
– Interest
Environmental rehabilitation costs 4
Post-retirement health care costs
Financial instruments 5
– Contractual outflow
– Inflow if US$ were to be sold
Bank overdraft
Total
2008
Trade payables
Borrowings
– US$ borrowings
– Capital
– Interest
– ZAR borrowings
– Capital
– Interest
Environmental rehabilitation costs 4
Post-retirement health care costs
Financial instruments 5
– Contractual outflow
– Inflow if US$ were to be sold
Bank overdraft
Total
Notes:
Within Between one
one year and five years
US$ million
US$ million
After
five years
US$ million
Total
US$ million
540.6
–
–
540.6
39.5
6.0
278.3
4.3
–
–
275.0
(274.0)
9.7
642.9
13.8
74.4
28.7
–
–
–
–
–
59.6
2.0
–
–
341.7
2.6
–
–
–
742.0
21.8
352.7
33.0
341.7
2.6
275.0
(274.0)
9.7
879.4
759.8
405.9
2,045.1
515.4
–
–
515.4
12.0
24.6
60.5
2.2
–
–
312.0
(318.0)
2.7
575.0
57.0
151.3
49.9
–
–
–
–
–
75.0
5.5
–
–
317.9
2.6
–
–
–
662.0
87.1
211.8
52.1
317.9
2.6
312.0
(318.0)
2.7
611.4
833.2
401.0
1,845.6
1 Spot Rate: R8.06 = US$1.00 (2008: R8.00 = US$1.00).
2 US$ borrowings – Spot LIBOR (1 month fix) rate adjusted by specific facility agreement: 0.31125% (2008: 2.4819%).
3 ZAR borrowings – Spot Prime rate adjusted by specific facility agreement: 11.0% (2008: 15.50%).
4 In South Africa, R886.7 million of the environmental rehabilitation costs is funded through the environmental trust funds.
5 Financial instruments relate to the US$/Rand forward cover purchased (note 20). It is anticipated that the cover will be extended until repayment of the loan
facility. The inflow is based on the Spot Rate R8.06 = US$1.00 (2008: R8.00 = US$1.00).
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G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
183
35. RISK MANAGEMENT ACTIVITIES (continued)
Market risk
Gold Fields is exposed to market risks, including foreign currency, commodity price, equity securities price and interest
rate risk associated with underlying assets, liabilities and anticipated transactions. Following periodic evaluation of these
exposures, Gold Fields may enter into derivative financial instruments to manage some of these exposures.
IFRS 7 Sensitivity analysis
IFRS 7 requires sensitivity analysis that shows the effects of hypothetical changes of relevant risk variables on profit and loss
or shareholders’ equity. The Group is exposed to commodity price, currency, interest rate and equity price risks. The effects
are determined by relating the hypothetical change in the risk variable to the balance of financial instruments at year end date.
The amounts generated from the sensitivity analyses below are forward-looking estimates of market risks assuming certain
adverse or favourable market conditions occur. Actual results in the future may differ materially from those projected results
and therefore should not be considered a projection of likely future events and gains/losses.
Foreign currency sensitivity
General and policy
In the ordinary course of business, Gold Fields enters into transactions, such as gold sales, denominated in foreign currencies,
primarily US dollars. In addition, Gold Fields has investments and indebtedness in US and Australian dollars. Although this
exposes Gold Fields to transaction and translation exposure from fluctuations in foreign currency exchange rates, Gold
Fields does not generally hedge this exposure, although it may do so in specific circumstances, such as financing projects
or acquisitions. Also, Gold Fields on occasion undertakes currency hedging to take advantage of favourable short-term
fluctuations in exchange rates when management believes exchange rates are at unsustainably high levels.
Gold Fields’ revenues and costs are very sensitive to the Rand/US dollar exchange rate because revenues are generated
using a gold price denominated in US dollars, while costs of the South African operations are incurred principally in Rand.
Depreciation of the Rand against the US dollar reduces Gold Fields’ average costs when they are translated into US dollars,
thereby increasing the operating margin of the South African operations. Conversely, appreciation of the Rand results in
South African operating costs increasing when translated into US dollars, resulting in lower operating margins. The impact on
profitability of changes in the value of the Rand against the US dollar can be substantial.
Currency risk only exists on account of financial instruments being denominated in a currency that is not the functional
currency and being of a monetary nature. Differences resulting from the translation of financial statements into the Group’s
presentation currency are not taken into account.
Foreign currency hedging experience
2009
South Africa US dollars/rand forward sales
South Africa: US dollars/rand forward sales – In October 2008, US$150 million of expected gold revenue for the December
quarter was sold forward on behalf of the South African operations. In December 2008, the US$150 million was extended to
the March quarter at an average forward rate of R10.3818. During the March quarter US$30 million was settled at a gain for
the quarter of R7 million. The outstanding balance of US$120 million was extended into the June quarter at an average forward
rate of R10.2595. Subsequent to the March quarter end, the remaining forward cover of US$120 million was partly delivered
into and the balance closed out, resulting in a gain of R54 million. This was accounted for in the income statement in the June
quarter.
Australia US dollars/Australian dollars forward sales
Australia: US dollars/Australian dollars forward sales – In October 2008, US$70 million of expected gold revenue for the
December quarter was sold forward on behalf of the Australian operations. In December 2008, US$56 million was extended to
the March quarter at an average forward rate of A$0.6650. During the March quarter an additional US$8 million of instruments
were taken out. The total of US$64 million was extended into the June quarter at an average forward rate of A$0.6445.
Subsequent to the March quarter end the forward cover of US$64 million was partly delivered into and the balance closed
out, resulting in a gain of A$2 million(R13 million). This was accounted for in the income statement.
184
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
35. RISK MANAGEMENT ACTIVITIES (continued)
Foreign currency hedging experience (continued)
2009
Western Areas US dollar/rand forward purchases
As a result of the draw down under the then bridge loan facility to settle the close-out of the old Western Areas gold derivative
structure, US dollar/rand forward cover was purchased during the March 2007 quarter for the amount of US$550.8 million
for settlement 6 August 2007, at an average forward rate of R7.3279/US$. Subsequent to this date the bridge loan facility
was refinanced with the split-tenor revolving credit facility on 21 May 2007 and the cover has been extended for periods
between one and three months throughout the year. The forward cover was also reduced with the partial repayments of
US$60.8 million, US$172 million and US$44 million against the loan on 6 December 2007, 31 December 2007 and 15 June
2009 respectively.
The balance of US$274 million forward cover was extended to 15 July 2009 at a rate of R8.0892/US$, based on an average
spot rate of R8.0419/US$. For accounting purposes, this forward cover has been designated as a hedging instrument. As a
result the gains and losses on the forward cover have been accounted for under gain/(loss) on foreign exchange along with
gains and losses on the underlying loan that has been hedged. The forward cover points have been accounted for as part of
interest.
The balance of the US dollar borrowings as disclosed in note 23 are held by subsidiaries that have a US dollar functional
currency and as a result have no exposure to changes in foreign currency.
2008
On 27 July 2007 and 4 October 2007 US dollar/rand forward cover of US$40 million and US$50 million was purchased
respectively to hedge future investments in Orogen, a 100% owned subsidiary. In January 2008, the Board approved the
funding of the balance of the Cerro Corona Capital Project from available offshore facilities. As a result of this decision, the
forward cover of US$40 million was cancelled for the respective dates of 30 April 2008 and 22 April 2008. A net profit of
R84.8 million was recognised on the closure of the contract.
Foreign currency contract position
As of 30 June 2009, Gold Fields’ foreign currency contract position was as follows:
US Dollar/Rand
Forward exchange contracts:
Amount (US dollars) – ’000
Average forward rate (R/US$)
Foreign currency sensitivity analysis
Year ended 30 June
2009
2008
274,000
318,000
8.0892
7.8479
A sensitivity analysis of Gold Fields’ foreign currency exposure as of 30 June 2009 is set forth below. Major non-derivative
monetary financial instruments, except for those disclosed in the table below, are denominated in the applicable functional
currency. Exchange rate fluctuations therefore do not have an effect on profit and loss or shareholders’ equity. Non-interest
bearing securities or equity instruments held are of a non-monetary nature and therefore are not exposed to currency risk as
defined in IFRS 7.
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
185
35. RISK MANAGEMENT ACTIVITIES (continued)
Sensitivity to R/US$ 2 exchange rates
R million R million R million R million R million R million
R/US$1 exchange rate as of 30 June
-10.0%
-7.5%
-5.0%
5.0%
7.5%
10.0%
2009
Borrowings under the split-tenor revolving
credit facility by GF Operations
Forward cover
(220.8)
220.8
(165.6)
165.6
(110.4)
110.4
110.4
(110.4)
165.6
(165.6)
220.8
(220.8)
Change in finance expense3
–
–
–
–
–
–
2008
Borrowings under the split-tenor revolving credit
facility by GF Operations
Forward cover
(254.4)
254.4
(190.8)
190.8
(127.2)
127.2
127.2
(127.2)
190.8
(190.8)
254.4
(254.4)
Change in finance expense3
–
–
–
–
–
–
Notes:
1 “+” and “-” designate the strengthening and weakening of the Rand against the US dollar.
2 Spot rate: R8.06 = US$1.00 (2008: R8.00 = US$1.00).
3 For accounting purposes, this forward cover has been designated as a hedging instrument. As a result the gains and losses on the forward cover have been
accounted for under gain/(loss) on foreign exchange along with gains and losses on the underlying loan that has been hedged.
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Sensitivity to R/US$ 2 exchange rates
US$ million US$ million US$ million US$ million US$ million US$ million
R/US$1 exchange rate as of 30 June
-10.0%
-7.5%
-5.0%
5.0%
7.5%
10.0%
l
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Borrowings under the split-tenor revolving credit
facility by GF Operations
Forward cover
(24.5)
24.5
(18.4)
18.4
(12.3)
12.3
12.3
(12.3)
18.4
(18.4)
24.5
(24.5)
Change in finance expense3
–
–
–
–
–
–
2008
Borrowings under the split-tenor revolving credit
facility by GF Operations
Forward cover
Change in finance expense3
Notes:
(35.0)
35.0
(26.2)
26.2
–
–
(17.5)
17.5
–
17.5
(17.5)
–
26.2
(26.2)
35.0
(35.0)
–
–
1 “+” and “-” designate the strengthening and weakening of the rand against the US dollar.
2 Spot rate: R8.06 = US$ 1.00 (2008: R8.00 = US$ 1.00).
3 For accounting purposes, this forward cover has been designated as a hedging instrument. As a result the gains and losses on the forward cover have been
accounted for under gain/(loss) on foreign exchange along with gains and losses on the underlying loan that has been hedged.
186
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
(cid:45)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
35. RISK MANAGEMENT ACTIVITIES (continued)
A sensitivity analysis of the mark-to-market valuations of Gold Fields’ foreign currency contracts is set forth below.
Sensitivity to R/US$1 exchange rates
R million
R million
R million R million
R million
R million
R million
-10.0%
-7.5%
-5.0%
Spot2
5.0%
7.5%
10.0%
R/US$1 exchange rate as of 30 June
2009
Financial instruments
(Marked to market forwards)
220.5
165.3
110.1
(0.4)
(110.8)
(166.0)
(221.2)
2008
Financial instruments
(Marked to market forwards)
310.2
246.6
183.0
55.5
(71.4)
(135.0)
(198.6)
Notes:
1 “+” and “-” designate the strengthening and weakening of the rand against the US dollar.
2 Spot rate: R8.06 = US$1.00 (2008: R8.00 = US$1.00).
Sensitivity to R/US$1 exchange rates US$ million US$ million US$ million US$ million US$ million US$ million US$ million
-10.0%
-7.5%
-5.0%
Spot2
5.0%
7.5%
10.0%
R/US$1 exchange rate as of 30 June
2009
Financial instruments
(Marked to market forwards)
27.4
20.5
13.7
(0.1)
(13.7)
(20.6)
(27.4)
2008
Financial instruments
(Marked to market forwards)
38.8
30.8
22.9
6.9
(8.9)
(16.9)
(24.8)
Notes:
1 “+” and “-” designate the strengthening and weakening of the rand against the US dollar.
2 Spot rate: R8.06 = US$1.00 (2008: R8.00 = US$1.00).
Sensitivity to Rand interest rates
R million
R million
R million R million
R million
R million
R million
-1.5%
-1.0%
-0.5%
Spot1
0.5%
1.0%
1.5%
Weighted average Rand interest rate as of 30 June
2009
Financial instruments
(Marked to market forwards)
(2.3)
(1.6)
(1.0)
(0.4)
0.3
0.9
1.5
2008
Financial instruments
(Marked to market forwards)
54.4
54.8
55.3
55.5
56.2
56.7
57.1
Notes:
1 Spot Rand interest rate: 7.69% (2008:11.69%).
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
187
35. RISK MANAGEMENT ACTIVITIES (continued)
Sensitivity to Rand interest rates
US$ million US$ million US$ million US$ million US$ million US$ million US$ million
-1.5%
-1.0%
-0.5%
Spot1
0.5%
1.0%
1.5%
Weighted average Rand interest rate as of 30 June
2009
Financial instruments
(Marked to market forwards)
(0.3)
(0.2)
(0.1)
(0.1)
–
0.1
0.2
2008
Financial instruments
(Marked to market forwards)
6.8
6.9
6.9
6.9
7.0
7.1
7.1
Notes:
1 Spot rand interest rate: 7.69% (2008:11.69%).
Sensitivity to US Dollar interest rates
R million
R million
R million R million
R million
R million
R million
-1.5%
-1.0%
-0.5%
Spot1
0.5%
1.0%
1.5%
Weighted average US Dollar interest rate as of 30 June
2009
Financial instruments
(Marked to market forwards)
1.5
0.9
0.3
(0.4)
(1.0)
(1.6)
(2.3)
2008
Financial instruments
(Marked to market forwards)
57.1
56.7
56.2
55.5
55.3
54.8
54.4
Notes:
1 Spot US dollar interest rate: 0.31% (2008: 2.69%).
Sensitivity to US Dollar interest rates
US$ million US$ million US$ million US$ million US$ million US$ million US$ million
-1.5%
-1.0%
-0.5%
Spot1
0.5%
1.0%
1.5%
Weighted average US Dollar interest rate as of 30 June
2009
Financial instruments
(Marked to market forwards)
0.2
0.1
–
(0.1)
(0.1)
(0.2)
(0.3)
2008
Financial instruments
(Marked to market forwards)
7.1
7.1
7.0
6.9
6.9
6.9
6.8
Notes:
1 Spot US dollar interest rate: 0.31% (2008: 2.69%).
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188
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
35. RISK MANAGEMENT ACTIVITIES (continued)
Commodity price sensitivity
General
Gold and copper
The market prices of gold and to a lesser extent copper have a significant effect on the results of operations of Gold Fields,
the ability of Gold Fields to pay dividends and undertake capital expenditures, and the market price of Gold Fields’ ordinary
shares. Gold and copper prices have historically fluctuated widely and are affected by numerous industry factors over which
Gold Fields does not have any control. The aggregate effect of these factors on the gold and copper price, all of which are
beyond the control of Gold Fields, is impossible for Gold Fields to predict.
Oil
The market price of oil has a significant effect on the results of the offshore operations of Gold Fields. The offshore operations
consume large quantities of diesel in the running of their mining fleets. Oil prices have historically fluctuated widely and are
affected by numerous factors over which Gold Fields does not have any control.
Commodity price hedging policy
Gold and copper
Generally, Gold Fields does not enter into forward sales, derivatives or other hedging arrangements to establish a price in
advance for future gold production. On an exceptional basis, Gold Fields may consider gold hedging arrangements in one or
more of the following circumstances:
(cid:115)(cid:0)(cid:0)(cid:52)(cid:79)(cid:0)(cid:80)(cid:82)(cid:79)(cid:84)(cid:69)(cid:67)(cid:84)(cid:0)(cid:67)(cid:65)(cid:83)(cid:72)(cid:0)(cid:109)(cid:79)(cid:87)(cid:83)(cid:0)(cid:65)(cid:84)(cid:0)(cid:84)(cid:73)(cid:77)(cid:69)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:83)(cid:73)(cid:71)(cid:78)(cid:73)(cid:108)(cid:67)(cid:65)(cid:78)(cid:84)(cid:0)(cid:69)(cid:88)(cid:80)(cid:69)(cid:78)(cid:68)(cid:73)(cid:84)(cid:85)(cid:82)(cid:69)(cid:27)
(cid:115)(cid:0)(cid:0)(cid:38)(cid:79)(cid:82)(cid:0)(cid:83)(cid:80)(cid:69)(cid:67)(cid:73)(cid:108)(cid:67)(cid:0)(cid:68)(cid:69)(cid:66)(cid:84)(cid:13)(cid:83)(cid:69)(cid:82)(cid:86)(cid:73)(cid:67)(cid:73)(cid:78)(cid:71)(cid:0)(cid:82)(cid:69)(cid:81)(cid:85)(cid:73)(cid:82)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0)(cid:0)(cid:0)(cid:52)(cid:79)(cid:0)(cid:83)(cid:65)(cid:70)(cid:69)(cid:71)(cid:85)(cid:65)(cid:82)(cid:68)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:86)(cid:73)(cid:65)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0)(cid:79)(cid:70)(cid:0)(cid:72)(cid:73)(cid:71)(cid:72)(cid:69)(cid:82)(cid:0)(cid:67)(cid:79)(cid:83)(cid:84)(cid:0)(cid:79)(cid:80)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:14)
(cid:0)
(cid:0)
(cid:0)
To the extent that it enters into commodity hedging arrangements, Gold Fields seeks to use different counterparty banks
consisting of local and international banks to spread risk. None of the counterparties is affiliated with, or related parties of, Gold
Fields.
Oil
Generally Gold Fields does not enter into derivatives or other hedging arrangements to establish a price in advance for future
oil consumption. However, where oil prices are expected to increase in the short to medium term, Gold Fields may consider
hedging the oil price in order to protect itself against the adverse cost effects of a material increase in the oil price.
Commodity price hedging experience
Gold and copper
During June 2009 8,705 tons of Cerro Corona’s expected copper production for financial 2010 was sold forward for monthly
deliveries, starting on 24 June 2009 to 23 June 2010. The average forward price for the monthly deliveries is US$5,001 per
ton. An additional 8,705 tons of Cerro Corona’s expected copper production for financial 2010 was hedged by means of a zero
cost collar, guaranteeing a minimum price of US$4,600 per ton with full participation up to a maximum price of US$5,400 per
ton. The market to market value of both instruments at the end of June 2009 was negative by R13.6 million (US$1.7 million).
Oil
2009
In F2009, the Ghanaian operations purchased four monthly Asian style ICE gasoil call options with strike prices ranging from
US$0.90 per litre to US$1.11 per litre, which equates to a Brent crude price of between US$92 and US$142 per barrel, with
final expiry on 28 February 2010.
The Australian operations purchased two monthly Asian style Singapore 0.5 gasoil call options with strike prices ranging from
US$0.9128 per litre to US$1.0950 per litre with a final expiry on 28 February 2010. The call options resulted in a premium of
A$4.4 million, paid upfront.
2008
On 28 June 2007 Gold Fields Ghana Holdings (BVI) Limited purchased a three month Asian style (average monthly price)
call option in respect of 15.0 million litres of diesel, settled monthly, to protect against adverse energy price movements. The
call option resulted in a premium of US$0.3 million, paid upfront, at a strike price of US$0.5572 per litre. On 20 August 2007
Gold Fields Ghana Holdings (BVI) Limited purchased a further three month Asian style call option in respect of 15.0 million
litres of diesel, settled monthly, to protect against adverse energy price movements. The call option resulted in a premium of
US$0.4 million, paid upfront, at a strike price of US$0.5572 per litre.
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
189
35. RISK MANAGEMENT ACTIVITIES (continued)
Commodity price contract position
As of the end of F2009, the only material commodity price hedging contracts outstanding were the copper instruments
described above.
A sensitivity analysis of the mark-to-market valuations of Gold Fields’ foreign currency contracts is set forth below:
Sensitivity to copper spot price1
R million
R million
R million R million
R million
R million
R million
-15.0%
-10.0%
-5.05%
Spot2
5.0%
10.0%
15.0%
Copper spot price as of 30 June
2009
Financial instruments
(Marked to market forwards)
48.6
31.0
13.4
(4.2)
(21.9)
(39.6)
(57.2)
Financial instruments
(Marked to market zero cost collar)
32.5
18.4
4.8
(9.4)
(22.2)
(36.3)
(50.9)
2008
Financial instruments
(Marked to market forwards)
Financial instruments
(Marked to market zero cost collar)
Notes:
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1 “+” and “-” designate the strengthening and weakening of the copper price against spot.
2 Spot rate: Copper US$5,040 per ton and R8.06 = US$1.00 (2008: R8.00 = US$1.00).
Sensitivity to copper spot price1
US$ million US$ million US$ million US$ million US$ million US$ million US$ million
-15.0%
-10.0%
-5.05%
Spot2
5.0%
10.0%
15.0%
Copper spot price as of 30 June
2009
Financial instruments
(Marked to market forwards)
Financial instruments
(Marked to market zero cost collar)
2008
Financial instruments
(Marked to market forwards)
Financial instruments
(Marked to market zero cost collar)
Notes:
6.0
4.0
–
–
3.8
2.3
–
–
1.7
(0.5)
(2.7)
(4.9)
(7.1)
0.6
(1.2)
(2.8)
(4.5)
(6.3)
–
–
–
–
–
–
–
–
–
–
1 “+” and “-” designate the strengthening and weakening of the copper price against spot.
2 Spot rate: Copper US$5,040 per ton and R8.06 = US$ 1.00 (2008: R8.00 = US$ 1.00).
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190
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
35. RISK MANAGEMENT ACTIVITIES (continued)
Sensitivity to R/US$1exchange rate
R million
R million
R million
R million
R million
R million
R million
-10.0%
-7.5%
-5.0%
Spot2
5.0%
7.5%
10.0%
US$2 exchange rate as of 30 June
2009
Financial instruments
(Marked to market forwards)
(4.0)
(4.1)
(4.2)
(4.2)
(4.6)
(4.7)
(4.9)
Financial instruments
(Marked to market zero cost collar)
(8.0)
(8.3)
(8.5)
(9.4)
(9.4)
(9.6)
(9.8)
2008
Financial instruments
(Marked to market forwards)
Financial instruments
(Marked to market zero cost collar)
Notes:
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1 “+” and “-” designate the strengthening and weakening of the Rand against the US dollar.
2 Spot rate: R8.06 = US$ 1.00 (2008: R8.00 = US$ 1.00).
Sensitivity to R/US$1 exchange rate
US$ million US$ million US$ million US$ million US$ million US$ million US$ million
-10.0%
-7.5%
-5.0%
Spot2
5.0%
7.5%
10.0%
US$1 exchange rate as of 30 June
2009
Financial instruments
(Marked to market forwards)
(0.5)
(0.5)
(0.5)
(0.5)
(0.6)
(0.6)
(0.6)
Financial instruments
(Marked to market zero cost collar)
(1.0)
(1.0)
(1.1)
(1.2)
(1.2)
(1.2)
(1.2)
2008
Financial instruments
(Marked to market forwards)
Financial instruments
(Marked to market zero cost collar)
Notes:
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1 “+” and “-” designate the strengthening and weakening of the rand against the US dollar.
2 Spot rate: R8.06 = US$1.00 (2008: R8.00 = US$1.00).
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
191
35. RISK MANAGEMENT ACTIVITIES (continued)
Sensitivity to US Dollar interest rates
R million
R million
R million R million
R million
R million
R million
-1.5%
-1.0%
-0.5%
Spot1
0.5%
1.0%
1.5%
Weighted average US Dollar interest rate as of 30 June
2009
Financial instruments
(Marked to market forwards)
(4.3)
(4.3)
(4.3)
(4.2)
(4.3)
(4.3)
(4.2)
Financial instruments
(Marked to market zero cost collar)
(6.9)
(7.3)
(7.9)
(9.4)
(9.3)
(10.0)
(10.7)
2008
Financial instruments
(Marked to market forwards)
Financial instruments
(Marked to market zero cost collar)
Notes:
1 Spot US dollar interest rate: 0.31% (2008:n/a).
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Sensitivity to US Dollar interest rates US$ million US$ million US$ million US$ million US$ million US$ million US$ million
-1.5%
-1.0%
-0.5%
Spot1
0.5%
1.0%
1.5%
Weighted average US Dollar interest rate as of 30 June
2009
Financial instruments
(Marked to market forwards)
(0.5)
(0.5)
(0.5)
(0.5)
(0.5)
(0.5)
(0.5)
Financial instruments
(Marked to market zero cost collar)
(0.9)
(0.9)
(1.0)
(1.2)
(1.2)
(1.2)
(1.3)
2008
Financial instruments (Marked to
market forwards)
Financial instruments (Marked to
market zero cost collar)
Notes:
1 Spot US dollar interest rate: 0.31% (2008:n/a)
2 Spot rate: R8.06 = US$1.00 (2008: R8.00 = US$1.00).
–
–
–
–
–
–
–
–
–
–
–
–
–
–
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192
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
35. RISK MANAGEMENT ACTIVITIES (continued)
Sensitivity to copper volatility
R million
R million
R million
R million
R million
R million
R million
-10.0%
-7.5%
-5.0%
Spot2
5.0%
7.5%
10.0%
Copper volatility as of 30 June
2009
Financial instruments
(Marked to market zero cost collar)
(7.9)
(8.1)
(8.4)
(9.4)
(8.8)
(9.1)
(9.3)
2008
Financial instruments
(Marked to market zero cost collar)
–
–
–
–
–
–
–
Notes:
1 Spot copper volatility: 44.7% (2008: n/a).
Sensitivity to copper volatility
US$ million US$ million US$ million US$ million US$ million US$ million US$ million
-10.0%
-7.5%
-5.0%
Spot2
5.0%
7.5%
10.0%
Copper volatility as of 30 June
2009
Financial instruments
(Marked to market zero cost collar)
(1.0)
(1.0)
(1.0)
(1.2)
(1.1)
(1.1)
(1.2)
2008
Financial instruments
(Marked to market zero cost collar)
–
–
–
–
–
–
–
Notes:
1 Spot copper volatility: 44.7% (2008: n/a).
2 Spot rate: R8.06 = US$1.00 (2008: R8.00 = US$1.00).
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
193
35. RISK MANAGEMENT ACTIVITIES (continued)
Equity securities price risk
General
The Group is exposed to equity securities price risk because of investments held by the Group which are classified as
available-for-sale. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio.
Diversification of the portfolio is done in accordance with limits set by the Group.
The Group’s equity investments are publicly traded and are listed on one of the following exchanges:
(cid:0)
(cid:0)
(cid:0)
(cid:0)
(cid:115)(cid:0)(cid:42)(cid:51)(cid:37)(cid:0)(cid:44)(cid:73)(cid:77)(cid:73)(cid:84)(cid:69)(cid:68)
(cid:115)(cid:0)(cid:52)(cid:79)(cid:82)(cid:79)(cid:78)(cid:84)(cid:79)(cid:0)(cid:51)(cid:84)(cid:79)(cid:67)(cid:75)(cid:0)(cid:37)(cid:88)(cid:67)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69)
(cid:115)(cid:0)(cid:33)(cid:85)(cid:83)(cid:84)(cid:82)(cid:65)(cid:76)(cid:73)(cid:65)(cid:78)(cid:0)(cid:51)(cid:84)(cid:79)(cid:67)(cid:75)(cid:0)(cid:37)(cid:88)(cid:67)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69)
(cid:115)(cid:0)(cid:44)(cid:79)(cid:78)(cid:68)(cid:79)(cid:78)(cid:0)(cid:51)(cid:84)(cid:79)(cid:67)(cid:75)(cid:0)(cid:37)(cid:88)(cid:67)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69)
The table below summarises the impact of increases/decreases of the exchanges on the Group’s shareholders’ equity in
case of shares and the Group’s profit and loss in case of options and warrants. The analysis is based on the assumption that
the share prices quoted on the exchange have increased/decreased with all other variables held constant and the Group’s
investments moved according to the historical correlation with the index.
Equity investments – shares
Increase/(decrease) in equity price at 30 June
Sensitivity to equity security price
2009
-10.0%
R million
-5.0%
R million
5.0%
R million
10.0%
R million
Increase/(decrease) in shareholders’ equity
(251.8)
(125.9)
125.9
251.8
2008
Increase/(decrease) in shareholders’ equity
(354.0)
(177.0)
177.0
354.0
Equity investments – shares
Increase/(decrease) in equity price at 30 June
Sensitivity to equity security price
US$ million
US$ million
US$ million
US$ million
-10.0%
-5.0%
5.0%
10.0%
2009
Increase/(decrease) in shareholders’ equity
(31.2)
(15.6)
15.6
2008
Increase/(decrease) in shareholders’ equity
(44.3)
(22.1)
22.1
31.2
44.3
Notes:
1 Spot rate: R8.06 = US$1.00 (2008: R8.00 = US$1.00)
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194
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
35. RISK MANAGEMENT ACTIVITIES (continued)
Interest price sensitivity
General
As Gold Fields has no significant interest bearing assets, the Group’s income and operating cash flows are substantially
independent of changes in market interest rates. Gold Fields’ interest rate risk arises from long-term borrowings.
As of 30 June 2009, Gold Fields’ long-term indebtedness amounted to R6,334.3 million (2008: R6,513.9 million). Gold
Fields generally does not undertake any specific action to cover its exposure to interest rate risk, although it may do so in
specific circumstances as in the case of the Mvelaphanda Transaction. Under the Mvela Loan, GFIMSA paid Mvela interest,
semi-annually and at a fixed rate of 10.57% per annum. Refer to note 23 for all the borrowings and the relevant interest rates
per facility.
Interest rate sensitivity analysis
The portion of Gold Fields interest bearing debt at year end that is exposed to interest rate fluctuations is R8,895.5 million
(2008: R6,513.9 million). This debt is normally rolled for periods between one and three months and is therefore exposed to the
rate changes in this period. The remainder of the debt is either short-term (less than three months total tenor) or bears interest
at a fixed rate.
R5,968.5 million (2008: R5,284.0 million) of the total debt at year end is exposed to changes in the LIBOR rate and
R2,927.0 million (2008: R1,210.4 million) is exposed to the South African Prime (Prime) interest rate. The relevant interest rates
for each facility are described in note 23.
The table below summarises the effect of a change in finance expense on the Group’s profit and loss had LIBOR and Prime
differed as indicated. The analysis is based on the assumption that the applicable interest rate increased/decreased with all
other variables held constant. All financial instruments with fixed interest rates that are carried at amortised cost are not subject
to the interest rate sensitivity analysis.
Change in interest expense for interest rate changes as of 30 June
-1.5%
-1.0%
-0.5%
0.5%
1.0%
1.5%
Sensitivity to interest rates
R million
R million
R million
R million
R million
R million
2009
Sensitivity to LIBOR interest rates
Sensitivity to Prime interest rates
(75.8)
(34.7)
(50.5)
(23.1)
(25.3)
(11.6)
25.3
11.6
50.5
23.1
75.8
34.7
Change in finance expense
(110.5)
(73.6)
(36.9)
36.9
73.6
110.5
2008
Sensitivity to LIBOR interest rates
Sensitivity to Prime interest rates
(52.5)
(11.7)
(35.0)
(7.8)
(17.5)
(3.9)
Change in finance expense
(64.2)
(42.8)
(21.4)
17.5
3.9
21.4
35.0
7.8
42.8
52.5
11.7
64.2
Notes:
1 Spot rate: R8.06 = US$ 1.00 (2008: R8.00 = US$ 1.00).
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G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
195
35. RISK MANAGEMENT ACTIVITIES (continued)
Sensitivity to interest rates
US$ million US$ million US$ million US$ million US$ million US$ million
Change in interest expense for interest rate changes as of 30 June
-1.5%
-1.0%
-0.5%
0.5%
1.0%
1.5%
2009
Sensitivity to LIBOR interest rates
Sensitivity to Prime interest rates
Change in finance expense
2008
Sensitivity to LIBOR interest rates
Sensitivity to Prime interest rates
Change in finance expense
Notes:
1 Spot rate: R8.06 = US$1.00 (2008: R8.00 = US$1.00).
36. CAPITAL MANAGEMENT
(8.4)
(3.8)
(12.2)
(7.2)
(1.6)
(8.8)
(5.6)
(2.6)
(8.2)
(4.8)
(1.1)
(5.9)
(2.8)
(1.3)
(4.1)
(2.4)
(0.5)
(2.9)
2.8
1.3
4.1
2.4
0.5
2.9
5.6
2.6
8.2
4.8
1.1
5.9
8.4
3.8
12.2
7.2
1.6
8.8
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The primary objective of managing the Group’s capital is to ensure that there is sufficient capital available to support the
funding requirements of the Group, including capital expenditure, in a way that
(cid:0)
(cid:0)
(cid:0)
(cid:115)(cid:0)(cid:47)(cid:80)(cid:84)(cid:73)(cid:77)(cid:73)(cid:83)(cid:69)(cid:83)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:67)(cid:79)(cid:83)(cid:84)(cid:0)(cid:79)(cid:70)(cid:0)(cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76)(cid:27)
(cid:115)(cid:0)(cid:45)(cid:65)(cid:88)(cid:73)(cid:77)(cid:73)(cid:83)(cid:69)(cid:83)(cid:0)(cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:72)(cid:79)(cid:76)(cid:68)(cid:69)(cid:82)(cid:83)(cid:7)(cid:0)(cid:82)(cid:69)(cid:84)(cid:85)(cid:82)(cid:78)(cid:83)(cid:27)(cid:0)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0)(cid:37)(cid:78)(cid:83)(cid:85)(cid:82)(cid:69)(cid:83)(cid:0)(cid:84)(cid:72)(cid:65)(cid:84)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:39)(cid:82)(cid:79)(cid:85)(cid:80)(cid:0)(cid:82)(cid:69)(cid:77)(cid:65)(cid:73)(cid:78)(cid:83)(cid:0)(cid:73)(cid:78)(cid:0)(cid:65)(cid:0)(cid:83)(cid:79)(cid:85)(cid:78)(cid:68)(cid:0)(cid:108)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76)(cid:0)(cid:80)(cid:79)(cid:83)(cid:73)(cid:84)(cid:73)(cid:79)(cid:78)(cid:14)
There were no changes to the Group’s overall capital management approach during the current year.
The Group manages and makes adjustments to the capital structure as and when borrowings mature or as and when funding
is required. This may take the form of raising equity, market or bank debt or hybrids thereof. Opportunities in the market are
also monitored closely to ensure that the most efficient funding solutions are implemented.
The Group monitors capital using a gearing ratio, which is defined as net debt divided by shareholders’ equity. While the
Group does not set absolute limits on the ratio, the Group believes a ratio of between 10% and 25% is optimal.
Figures in millions
SA rand
Borrowings
Cash and cash equivalents
Net debt
Total shareholders’ equity
Gearing ratio (%)
US dollars
Borrowings
Cash and cash equivalents
Net debt
Total shareholders’ equity
Gearing ratio (%)
2009
2008
8,895.5
2,803.9
6,091.6
6,998.1
2,007.3
4,990.8
42,669.4
42,561.2
14
12
1,103.7
347.9
755.8
5,294.0
14
874.7
250.9
623.8
5,320.1
12
196
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
37. RELATED PARTY TRANSACTIONS
None of the directors, officers or major shareholders of Gold Fields or, to the knowledge of Gold Fields, their families, had any
interest, direct or indirect, in any transaction during the last two fiscal years or in any proposed transaction which has affected
or will materially affect Gold Fields or its investment interests or subsidiaries, other than as stated below.
Mvelaphanda transaction
On 8 March 2004, shareholders of both Gold Fields and Mvelaphanda Resources Limited (Mvela Resources) voted decisively
in favour of all shareholder resolutions necessary to implement the transaction in terms of which Mvelaphanda Gold
(Proprietary) Limited (Mvela), a wholly owned subsidiary of Mvela Resources, would acquire a 15 per cent beneficial interest
in the South African gold mining assets of Gold Fields, including the world-class Beatrix, Driefontein and Kloof mines, for a
cash consideration of R4,139 million. All conditions precedent to the transaction were fulfilled following the completion by
Mvela Resources of a domestic and international private placement on 15 March 2004.
In terms of the Right of Exchange, Mvela and Gold Fields had the right to require the exchange of the GFIMSA shares in return for
the issue to Mvela of new ordinary shares in Gold Fields. The minimum and maximum number of Gold Fields shares that would
have been issued by Gold Fields following the exercise of the Right of Exchange was 45 million and 55 million respectively.
Following completion of the private placement Mvela Gold advanced a loan of R4,139 million to GFI Mining South Africa (Pty)
Limited, a wholly owned subsidiary of Gold Fields, on 17 March 2004. This loan was financed by way of commercial bank debt
of approximately R1,349 million, mezzanine finance of R1,100 million (which includes R200 million of redeemable preference
shares in Micawber 325 (Pty) Limited subscribed for by Gold Fields) and the balance of approximately R1,690 million raised
by the Mvela Resources private placement, (which includes R100 million of equity in Mvela Resources subscribed for by Gold
Fields as part of the above private placement). At the end of five years, the GFIMSA loan would be repaid and Mvela would
subscribe for 15 per cent of the share capital of GFIMSA.
The proceeds of the GFIMSA Loan were applied towards settling R4.1 billion of the R4.7 billion payable by GFIMSA to
Beatrix Mining Ventures Limited, Driefontein Consolidated (Pty) Limited and Kloof Gold Mining Company Limited following
implementation of the internal reorganisation pursuant to which GFIMSA has acquired the gold mining assets of these
companies as well as ancillary assets.
In terms of the transaction, and in furthering its empowerment objectives, Mvela had appointed two nominees out of a
maximum of seven to the GFIMSA board, and had appointed two members to each of GFIMSA’s Operations Committee and
Transformation Committee, which latter committee was established to monitor compliance with the Mining Charter and other
transformation objectives.
On 17 March 2008, Gold Fields and Mvela decided that Mvela would receive a fixed 50 million Gold Fields shares if and when
Mvela’s future stake of 15 per cent in GFIMSA is exchanged at the instance of either Gold Fields or Mvela, for shares in Gold
Fields.
On 17 March 2009, in terms of the R4.1 billion Black Economic Empowerment transaction approved by shareholders of Gold
Fields on 8 March 2004, Mvela Resources took receipt, through its wholly owned subsidiary Mvela Gold, of its 15 per cent
shareholding in GFIMSA.
Immediately upon receipt of the GFIMSA shares, Mvela Gold exercised its right to use the GFIMSA shares to subscribe for
50 million new ordinary shares in Gold Fields. Gold Fields issued 50 million new ordinary Gold Fields shares, to Mvela Gold
for the GFIMSA shares. Pursuant to the above transactions, Mvela Gold owned approximately 7 per cent of the listed shares
of Gold Fields, and Gold Fields again owns 100 per cent of GFIMSA.
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
197
37. RELATED PARTY TRANSACTIONS (continued)
New Africa Mining Fund
John G Hopwood, a non-executive director of Gold Fields Limited, is a Trustee of New Africa Mining Fund and is the Chairman
of the New Africa Mining Fund Investment Committee. Gold Fields has been instrumental in the formation of the New
Africa Mining Fund and is a significant investor in the fund. The fund has as its objectives the promotion of black economic
empowerment and the transformation of the South African mining industry by facilitating junior mining projects. As at 30 June
2009 Gold Fields Limited has contributed R31.4 million (2008: net R31.4 million). The original commitment period of six years,
under which Gold Fields has provided a commitment to fund R50.0 million in total, expired on 28 February 2009. No new
investments are permitted but follow on investments of up to R56 million are allowed, the Gold Fields portion of which is
estimated at approximately R5 million.
ABSA
Gill Marcus, a non-executive director of Gold Fields Limited until 20 July 2009, was the Chairperson of ABSA Group Limited
and ABSA Bank Limited up to that date. Gold Fields currently has a R500 million 364 day revolving credit facility with ABSA
Capital (a division of ABSA Bank Limited) and entered into two further facilities with ABSA during F2009 which expired during
the financial year. Refer note 23(i) for further details.
Rand Refinery Limited
GFL Mining Services Limited has an agreement with Rand Refinery Limited, (Rand Refinery), in which Gold Fields holds a
34.9% interest, providing for the refining of substantially all of Gold Fields’ South African gold production by Rand Refinery.
On 21 November 2000, GFL Mining Services Limited (GFLMS) entered into an agreement with Rand Refinery in terms of
which GFLMS acts as agent for Rand Refinery with regard to the sale of a maximum of 50% of Gold Fields’ South African
gold production.
On 1 June 2004, GFLMS has exercised its right, by giving notice to Rand Refinery, to sell all of Gold Fields’ South African
gold production with effect from 1 October 2004. Gold Fields Ghana Limited and Abosso Goldfields Limited also have an
agreement with Rand Refinery since March 2002 to transport, refine and sell substantially all of the gold production from the
Tarkwa and Damang mines.
Nicholas J Holland, who is the chief executive officer and a director of Gold Fields, has been a director of Rand Refinery since
12 July 2000. As a director of GFLMS, which is a wholly owned subsidiary of Gold Fields, Mr Holland has declared his interest
in the contract between Rand Refinery and GFLMS, pursuant to South African requirements, and has not participated in the
decision of Rand Refinery to enter into the agreement with either of GFLMS, Gold Fields Ghana Limited or Abosso Goldfields
Limited. Mr Holland signed the agreement with Rand Refinery on behalf of GFLMS.
None of the directors or officers of Gold Fields or any associate of such director or officer is currently or has been at any time
during the past two fiscal years indebted to Gold Fields.
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198
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
Figures in millions unless otherwise stated
United States Dollars
2008
2009
5.4
1.7
2.3
9.4
5.1
2.0
2.7
9.8
38. RELATED PARTY TRANSACTIONS (continued)
Compensation to key management
(Executive Committee)
Salaries and other short-term employee benefits
Bonus
Share-based payments
39. SEGMENT REPORTING
The segment information is shown on pages 212 and 213.
South African Rand
2009
2008
46.1
18.2
24.5
88.8
39.2
12.0
16.6
67.8
COMPANY INCOME STATEMENT
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
Figures in millions unless otherwise stated
Dividend received
Net interest paid
Share-based payments
Amortisation of financial guarantees
Foreign exchange loss on revaluation of financial guarantees
Mark-to-market of Mvela Right of Exchange
Other income
Profit/(loss) before taxation
Taxation
Profit/(loss) for the year
The accompanying notes form an integral part of these financial statements.
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
199
South African Rand
Notes
2009
2008
1,595.2
(87.9)
(7.0)
87.1
(4.5)
529.0
3.4
2,115.3
(29.8)
2,085.5
424.9
(12.2)
(4.8)
73.6
(16.6)
(529.0)
2.5
(61.6)
3.3
(58.3)
1
2
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;
C
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200
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
COMPANY BALANCE SHEET
(cid:72)(cid:91)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
Figures in millions unless otherwise stated
ASSETS
Non-current assets
Deferred taxation
Investments
Current asset
Trade and other receivables
Total assets
EQUITY AND LIABILITIES
Share capital
Share premium
Reserves
Accumulated loss
Shareholders’ equity per statement
Non-current liabilities
Borrowings
Current liabilities
Trade and other payables
Current portion of financial instrument
Financial guarantees
Short-term loans
Taxation
Total equity and liabilities
The accompanying notes form an integral part of these financial statements
South African Rand
Notes
2009
2008
32,258.9
27,822.9
–
3.3
4
32,258.9
27,819.6
3.2
2.6
32,262.1
27,825.5
352.4
326.6
31,411.3
28,210.3
259.3
252.2
(1,792.5)
(2,897.2)
30,230.5
25,891.9
684.2
1,219.5
684.2
1,219.5
1,347.4
16.1
–
149.9
1,143.0
38.4
714.1
0.6
529.0
172.6
–
11.9
32,262.1
27,825.5
5
6
7
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
201
COMPANY STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
Figures in millions unless otherwise stated
South African Rand
Balance at 30 June 2007
Net loss
Share-based payments
Dividends
Number of
ordinary
Ordinary
Fair
value
Share-
based
Accumu-
shares
issued
share
Share adjustment
payment
capital
premium
reserve
reserve
lated
loss
Total
share-
holders’
equity
652,158,066
326.1
28,138.1
0.2
247.2
(1,794.1)
26,917.5
–
–
–
–
–
–
0.5
–
–
–
–
72.2
–
–
–
–
–
–
–
4.8
–
–
–
(58.3)
–
(58.3)
4.8
(1,044.8)
(1,044.8)
–
–
72.7
–
Exercise of employee share options
Mark-to-market gain on listed investment
1,042,616
–
Balance at 30 June 2008
653,200,682
326.6
28,210.3
0.2
252.0
(2,897.2)
25,891.9
Net profit
Share-based payments
Dividends
Mvela share issue on conclusion
of transaction
Exercise of employee share options
Mark-to-market gain on listed investment
–
–
–
–
–
–
–
–
–
50,000,000
1,549,167
–
25.0
0.8
–
3,130.2
70.8
–
Balance at 30 June 2009
704,749,849
352.4
31,411.3
The accompanying notes form an integral part of these financial statements
–
–
–
–
–
0.1
0.3
–
2,085.5
2,085.5
7.0
–
7.0
–
–
–
–
(980.8)
(980.8)
–
–
–
3,155.2
71.6
0.1
259.0
(1,792.5)
30,230.5
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202
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
COMPANY CASH FLOW STATEMENT
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
Figures in millions unless otherwise stated
Cash flows from operating activities
Cash generated by operations
Interest paid
Interest received
Dividends received
Change in working capital
Cash generated by operating activities
Tax paid
Net cash generated by operations
Dividends paid
Cash flows from investing activities
Purchase of investments
Cash flows from financing activities
Advance of long-term loan to subsidiaries
Preference share liability (repaid)/raised
Short-term loans raised
Proceeds from issue of shares
Net cash generated/(utilised)
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the year
The accompanying notes form an integral part of these financial statements
South African Rand
Notes
2009
2008
633.1
(594.0)
8
9
10
11
91.7
(102.0)
14.1
1,595.2
14.9
1,613.9
–
1,613.9
(980.8)
–
–
22.0
(19.5)
7.3
424.9
16.1
450.8
–
450.8
(1,044.8)
–
–
(633.1)
594.0
(1,249.5)
(623.2)
1,143.0
96.6
(678.7)
1 200.0
–
72.7
–
–
–
–
–
–
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
203
NOTES TO THE COMPANY ANNUAL FINANCIAL STATEMENTS
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
South African Rand
2009
2008
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A
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529.0
(529.0)
529.0
(529.0)
(26.5)
(3.3)
(29.8)
–
3.3
3.3
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Figures in millions unless otherwise stated
1. MARK-TO-MARKET OF MVELA RIGHT OF EXCHANGE
In terms of the Right of Exchange, Mvelaphanda Gold (Pty) Limited (Mvela) and Gold
Fields have the right to require the exchange of the GFIMSA shares in return for the issue
to Mvela of new ordinary shares in Gold Fields. The minimum and maximum number of
Gold Fields shares that would be issued by Gold Fields following the exercise of the Right
of Exchange was 45 million and 55 million respectively. On 17 March 2008, Gold Fields
and Mvela decided that Mvela will receive a fixed 50 million Gold Fields shares if and when
Mvela’s future stake of 15 per cent in GFIMSA is exchanged at the instance of either Gold
Fields or Mvela, for shares in Gold Fields.
The fixed contract, prior to its conclusion on 17 March 2009, represented an option to
exchange a fixed amount of Gold Fields equity for a fixed amount of a financial asset.
The fixed contract met the definition of a derivative under IAS 39 and had to be marked-
to-market at year end.
Mark-to-market of Mvela Right of Exchange
Total mark-to-market of Mvela Right of Exchange
2. TAXATION
South African current taxation
– normal tax
– deferred tax
Total tax
3. DIVIDENDS
2008 final dividend of 120 cents per share (2007: 95 cents) declared on 1 August 2008
2009 interim dividend of 30 cents per share (2008: 65 cents) declared on 28 January 2009
784.5
196.4
619.9
424.9
A final dividend in respect of F2009 of 80 cents per share was approved by the Board of
Directors on 5 August 2009. This dividend payable is not reflected in these financial statements.
No Secondary Tax on Companies is payable on the dividend declared after year end due to
sufficient STC credits available in Gold Fields Limited.
Total dividends
4.
INVESTMENTS
Listed
Cost
Net unrealised gain on revaluation
Carrying value
Market value
Unlisted
Carrying value
Total listed and unlisted investments
Loans
Total investments
Details of major investments are given on pages 210 and 211.
l
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980.9
1,044.8
0.3
0.3
0.6
0.6
0.3
0.2
0.5
0.5
21,899.0
18,709.3
21,899.6
10,359.3
18,709.8
9,109.8
32,258.9
27,819.6
204
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
NOTES TO THE COMPANY ANNUAL FINANCIAL STATEMENTS continued
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
South African Rand
2009
2008
1,219.5
–
–
1,200.0
(623.2)
87.9
–
19.5
684.2
1,219.5
149.9
149.9
172.6
172.6
Figures in millions unless otherwise stated
5. BORROWINGS
On 24 December 2007 Gold Fields Limited issued R1.2 billion three years and one month
non-convertible redeemable preference shares. The dividend rate payable is a floating
rate of up to 61% of Prime. Dividends are rolled up until redemption date. The purpose
of the preference shares was to refinance existing facilities.
On 10 October 2008, R600 million of the R1,200 million preference shares was repaid
with an attributable dividend of R23.2 million. The balance is redeemable at the option
of Gold Fields.
The remaining preference shares mature on 24 January 2011 and have been guaranteed
by GFIMSA, Orogen, GF Operations and Gold Fields Holdings Company (BVI) Limited.
Preference shares
Balance at the beginning of year
Preference shares issued
Preference shares repaid
Preference share interest
Total preference share liability
6. FINANCIAL GUARANTEES
Gold Fields Limited and certain of its subsidiaries have guaranteed all payments and other
obligations of GFI Mining South Africa (Pty) Limited, Gold Fields La Cima, Orogen Holdings
(BVI) Limited and Gold Fields Operations Limited related to the Mvela loan, the project
finance facility and the Split-tenor revolving credit facility.
Value of unamortised portion of financial guarantees
Total financial guarantees
7. SHORT-TERM LOANS
Gold Fields established its R10 billion Domestic Medium Term Note Programme (the
Programme) on 6 April 2009. Under the Programme Gold Fields may from time to time
issue notes denominated in any currency. The notes will not be subject to any minimum or
maximum maturity and the maximum aggregate nominal amount of all notes from time to
time outstanding will not exceed R10 billion. The Programme has been registered with the
Bond Exchange of South Africa Limited (BESA) and the notes issued can be listed on
BESA or not.
Under the Programme Gold Fields issued listed notes on 9 April 2009 and 4 June 2009
totalling R568 million and R575 million respectively. The different notes issued mature
either three months or six months from date of issue and bear interest at JIBAR plus a margin
ranging from 0.675% to 1.000% per annum.
Commercial paper issuance
Balance at the beginning of year
Loans advanced
Total short term loans
–
1,143.0
1,143.0
–
–
–
Figures in millions unless otherwise stated
8. CASH GENERATED BY OPERATIONS
Profit/(loss) for the year
Taxation
Interest paid
Interest received
Dividends received
Profit/(loss) before non-cash items
Non-cash items:
Share-based payments
Amortisation of financial guarantees
Mark-to-market of Mvela Right of Exchange
Foreign exchange loss on revaluation of financial guarantees
Preference share interest
Other
Total cash generated by operations
9. CHANGE IN WORKING CAPITAL
Trade and other receivables
Trade and other payables
Total change in working capital
10. TAX PAID
Amount owing at beginning of the year
SA current taxation
Amount owing at end of the year
Total tax paid
11. DIVIDENDS PAID
Dividends per statement of shareholders’ equity
Total dividends paid
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
205
South African Rand
2009
2008
2,085.5
29.8
102.0
(14.1)
(58.3)
(3.3)
19.5
(7.3)
(1,595.2)
(424.9)
608.0
(474.3)
7.0
(87.1)
(529.0)
4.5
87.9
0.4
91.7
(0.6)
15.5
14.9
(11.9)
(26.5)
38.4
–
4.8
(73.6)
529.0
16.6
19.5
–
22.0
16.5
(0.4)
16.1
(11.9)
–
11.9
–
980.8
1,044.8
980.8
1,044.8
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206
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
NOTES TO THE COMPANY ANNUAL FINANCIAL STATEMENTS continued
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
12. RISK MANAGEMENT ACTIVITIES
In the normal course of its operations, the company is exposed to commodity price, currency, interest rate, liquidity, equity
price and credit risk. In order to manage these risks, the company has developed a comprehensive risk management process
to facilitate control and monitoring of these risks.
Controlling and managing risk in the company
Gold Fields has policies in areas such as counterparty exposure, hedging practices and prudential limits which have been
approved by Gold Fields’ Board of Directors. Management of financial risk is centralised at Gold Fields’ treasury department,
which acts as the interface between Gold Fields’ operations and counterparty banks. The treasury department manages
financial risk in accordance with the policies and procedures established by the Gold Fields Board of Directors and Executive
Committee.
Gold Fields’ Audit Committee has approved dealing limits for money market, foreign exchange and commodity transactions,
which Gold Fields’ treasury department is required to adhere to. Among other restrictions, these limits describe which
instruments may be traded and demarcate open position limits for each category as well as indicating counterparty credit
related limits. The dealing exposure and limits are checked and controlled each day and reported to the chief financial officer.
The objective of Treasury is to manage all financial risks arising from the company’s business activities in order to protect
profit and cash flows. Treasury activities of Gold Fields Limited are guided by the Treasury Policy, the Treasury Framework as
well as domestic and international financial market regulations. Treasury activities are currently performed within the Treasury
Framework with appropriate resolutions from the Board of Gold Fields Limited, which are reviewed and approved annually by
the Audit Committee.
The financial risk management objectives of the company are defined as follows:
Liquidity risk management: The objective is to ensure that the company is able to meet its short-term commitments through
the effective and efficient usage of credit facilities.
Currency risk management: The objective is to maximise the company’s profits by minimising currency fluctuations.
Funding risk management: The objective is to meet funding requirements timeously and at competitive rates by adopting
reliable liquidity management procedures.
Investment risk management: The objective is to achieve optimal returns on surplus funds.
Interest rate risk management: The objective is to identify opportunities to prudently manage interest rate exposures.
Counterparty exposure: The objective is to only deal with approved counterparties that are of a sound financial standing
and who have an official credit rating. The company is limited to a maximum investment of between 4 and 5 per cent of the
financial institutions’ equity, which is dependent on the institutions’ credit rating. This credit rating is Fitch Ratings’ short-term
credit rating for financial institutions.
Commodity price risk management: Commodity risk management takes place within limits and with counterparties as
approved in the Treasury Framework.
Operational risk management: The objective is to implement controls to adequately mitigate the risk of error and/or fraud.
Banking relations management: The objective is to maintain relationships with credible financial institutions and ensure that
all contracts and agreements related to risk management activities are co-ordinated and consistent throughout the company
and that they comply where necessary with all relevant regulatory and statutory requirements.
Credit risk
Credit risk represents risk that an entity will suffer a financial loss due to the other party of a financial instrument not discharging
its obligation.
The company has reduced its exposure to credit risk by dealing with a number of counterparties. The company approves
these counterparties according to its risk management policy and ensures that they are of good credit quality.
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
207
12. RISK MANAGEMENT ACTIVITIES (continued)
Accounts receivable are reviewed on a regular basis and a provision for impairment is raised when they are not considered
recoverable.
The combined maximum credit risk exposure of the company is as follows:
On balance sheet
Investments
Trade and other receivables
None of the receivables are past due or impaired.
Liquidity risk
SA Rand
2009
2008
10,359.3
9,109.8
3.2
2.6
In the ordinary course of business, the company receives cash proceeds from its operations and is required to fund working
capital and capital expenditure requirements. The cash is managed to ensure surplus funds are invested to maximise returns
whilst ensuring that capital is safeguarded to the maximum extent possible by investing only with top financial institutions.
Uncommitted borrowing facilities are maintained with several banking counterparties to meet the company’s normal and
contingency funding requirements.
The following are the contractually due undiscounted cash flows resulting from maturities of all financial liabilities, including
Between one
Within one year
and five years
After five years
R million
R million
R million
Total
R million
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16.1
–
–
–
1,143.0
29.8
1,188.9
600.0
231.4
–
–
831.4
–
–
–
–
–
–
1 ZAR borrowings - Spot Prime rate adjusted by specific facility agreement: 11% (2008: 15.50 %).
2008
Trade payables
Borrowings
– Capital
– Interest
Total
Between one
Within one year
and five years
After five years
R million
R million
R million
0.6
–
–
0.6
–
1,200.0
399.1
1 599.1
–
–
–
–
16.1
600.0
231.4
1,143.0
29.8
2,020.3
Total
R million
0.6
1,200.0
399.1
1 599.7
interest payments:
2009
Trade payables
Borrowings
– Capital
– Interest
Short term loans
– Capital
– Interest
Total
Notes:
208
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
NOTES TO THE COMPANY ANNUAL FINANCIAL STATEMENTS continued
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
12. RISK MANAGEMENT ACTIVITIES (continued)
Market risk
Gold Fields is exposed to market risks, including foreign currency, commodity price, equity securities price and interest
rate risk associated with underlying assets, liabilities and anticipated transactions. Following periodic evaluation of these
exposures, Gold Fields may enter into derivative financial instruments to manage some of these exposures.
IFRS 7 Sensitivity analysis
IFRS 7 requires sensitivity analysis that shows the effects of hypothetical changes of relevant risk variables on profit and loss
or shareholders’ equity. The company is exposed to commodity price, currency, interest rate, liquidity, equity price and credit
risks. The effects are determined by relating the hypothetical change in the risk variable to the balance of financial instruments
at year end date.
The amounts generated from the sensitivity analyses below are forward-looking estimates of market risks assuming certain
adverse or favourable market conditions occur. Actual results in the future may differ materially from those projected results
and therefore should not be considered a projection of likely future events and gains/losses.
Interest price sensitivity
General
As Gold Fields has no significant interest bearing assets, the company’s income and operating cash flows are substantially
independent of changes in market interest rates. Gold Fields’ interest rate risk arises from long-term borrowings.
As of 30 June 2009, Gold Fields’ long-term indebtedness amounted to R684.2 million (2008: R1,219.5 million) and its short-
term indebtedness amounted to R1,143.0 million (2008: nil). Gold Fields generally does not undertake any specific action to
cover its exposure to interest rate risk, although it may do so in specific circumstances.
Interest rate sensitivity analysis
The portion of Gold Fields’ interest bearing debt at year end that is exposed to interest rate fluctuations in prime interest rate
is R1,827.2 million (2008: R1,219.5 million).
The table below summarises the effect of a change in finance expense on the company’s profit and loss had Prime differed
as indicated. The analysis is based on the assumption that the applicable interest rate increased/decreased with all other
variables held constant.
Sensitivity to interest rates
R million
R million
R million
R million
R million
R million
Change in interest expense for interest rate changes as of 30 June
-1.5%
-1.0%
-0.5%
0.5%
1.0%
1.5%
2009
Sensitivity to Prime interest rates
Change in finance expense
2008
Sensitivity to Prime interest rates
Change in finance expense
11.5
11.5
2.0
2.0
7.7
7.7
1.3
1.3
3.8
3.8
0.7
0.7
(3.8)
(3.8)
(0.7)
(0.7)
(7.7)
(7.7)
(1.3)
(1.3)
(11.5)
(11.5)
(2.0)
(2.0)
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
209
12. RISK MANAGEMENT ACTIVITIES (continued)
Market risk sensitivity
Mark-to-market of Mvela Right of Exchange
The instrument as described in note 1 was subject to different variables, the most significant of which were the rand gold
price received on the one hand and the Gold Fields share price on the other. As the instrument was settled in March 2009, no
sensitivity has been performed for F2009.
The table below summarises the effect of changes in the abovementioned variables:
Sensitivity to Rand gold price
2009
Effect on profit and loss
2008
Effect on profit and loss
Notes:
1 Rand Gold price of R227,342 used as a base in F2008.
Sensitivity to Rand gold price
2009
Effect on profit and loss
2008
Effect on profit and loss
Notes:
Change in mark-to-market value of derivative as of 30 June
-10.0%
R million
-5.0%
R million
5.0%
R million
10.0%
R million
–
–
–
–
(320.0)
(142.0)
119.0
217.0
Change in mark-to-market value of derivative as of 30 June
-20.0%
R million
-10.0%
R million
10.0%
R million
20.0%
R million
–
–
–
–
(576.0)
(288.0)
288.0
576.0
1 Spot Gold Fields equity price of R89.00 used as a base in F2008.
13. CAPITAL MANAGEMENT
Capital is managed on a Group basis only and not on a company basis. Refer to note 36 in the Group financial statements.
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a
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i
F
n
a
n
c
a
i
l
S
t
a
t
e
m
e
n
t
s
210
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
MAJOR GROUP INVESTMENTS – DIRECT AND INDIRECT
Shares held
2009
2008
Group
beneficial interest
Book value in holding company
Shares
Loans
2009
%
2008
%
2009
Rm
2008
Rm
2009
Rm
2008
Rm
1,256,864,979
53,145,700
80.7
80.7
–
–
–
–
38,394,000
4 ,266,000
54,924,757
96,549,020
9,625,001
1,000
311,668,564
1,000
235,676,387
711
1
4,068
161,753,619
138,600,000
3,750
218
281,051,329
38,394,000
4,266,000
54,924,757
96,549,020
9,625,001
1,000
311,668,564
850
235,676,387
711
–
4,056
161,753,619
138,600,000
3,750
206
281,051,329
71.1
71.1
100.0
100.0
100.0
100.0
100.0
100.0
100.0
71.1
100.0
100.0
100.0
100.0
100.0
100.0
100.0
–
71.1
–
71.1
–
100.0
206.8
100.0
120.4
100.0
–
100.0
–
100.0
100.0
3,138.2
100.0 17,425.9
–
–
–
–
602.8
–
–
–
71.1
0.0
100.0
100.0
100.0
100.0
100.0
100.0
–
–
–
206.8
120.4
–
–
8.0
–
–
–
–
(136.8)
(13.1)
–
1,157.1
17,425.9 9,648.4
–
313.9
–
–
(610.2)
–
–
–
–
–
–
–
602.8
–
–
–
–
–
–
–
(136.8)
(13.1)
–
–
9,869.8
–
–
–
–
(610.2)
–
–
–
21,494.1
18,363.9 10,359.3
9,109.7
Notes
5
SUBSIDIARIES
Listed
Gold Fields La Cima S.A.
Unlisted
Abosso Goldfields Limited – Class”A” shares 2
– Class”B” shares 2
Agnew Gold Mining Company (Pty) Limited
4
Beatrix Mines Limited
1
Beatrix Mining Ventures Limited
1
Driefontein Consolidated (Pty) Limited
1
GFI Joint Venture Holdings (Pty) Limited
1
GFI Mining South Africa (Pty) Limited
1
GFL Mining Services Limited
1
Gold Fields Ghana Limited
2
1
Gold Fields Group Services (Pty) Limited
Gold Fields Holdings Company (BVI) Limited 3
1
Gold Fields Operations Limited
1
Kloof Gold Mining Company Limited
5
Minera Gold Fields South Africa
3
Orogen Holdings (BVI) Limited
4
St Ives Gold Mining Company (Pty) Limited
Total
Notes
1 – Incorporated in the Republic of South Africa
2 – Incorporated in Ghana
3 – Incorporated in the British Virgin Islands
4 – Incorporated in Australia
5 – Incorporated in Peru
The interest of Gold Fields Limited in the aggregate amount of the after-taxation profits of its subsidiaries is R1,975.5 million (2008: R4,043.8 million).
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
211
MAJOR GROUP INVESTMENTS – DIRECT AND INDIRECT continued
Shares held
2009
2008
Notes
140,000,000
140,000,000
12,500,000
2,226,891
1,071,000
51,783,388
5,362,500
3,963,186
8,397,858
–
11,349,195
3,625,124
57,968,029
3,130,400
12,500,000
1,946,779
10,710,000
51,783,388
5,362,500
3,963,186
8,397,858
41,666,667
11,349,195
3,625,124
55,381,651
3,130,400
Group
beneficial interest
2009
%
26.4
1.8
2.0
16.4
19.1
8.1
4.5
3.9
–
2.5
6.8
19.9
4.5
2008
%
36.2
2.4
2.0
16.4
19.1
8.7
4.5
4.0
11.7
7.6
6.8
19.9
4.5
OTHER
Listed associates
Rusoro Mining Limited
Listed equity investments
Gold One International Limited (previously Aflease Gold Limited)
Buffalo Gold (previously Sargold Resources Corporation)
CMQ Resources Inc. – shares
Conquest Mining Limited
Gold Quest Mining Corporation – shares
Medoro Resources – shares
Mvelaphanda Resources Limited – shares
Orezone Resources Inc.
Orsu Metals Corp (formerly Lero Gold Corp)
Radius Gold Inc.
Sino Gold Limited – shares
Troy Resources NL
Note: Only major investments are listed individually.
S
e
c
t
i
o
n
3
:
A
n
n
u
a
l
i
F
n
a
n
c
a
i
l
S
t
a
t
e
m
e
n
t
s
:
M
a
o
r
j
G
r
o
u
p
I
n
v
e
s
t
m
e
n
t
s
212
212
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
SEGMENT REPORT
Financial summary – Rand million
Continuing operations
South Africa
Ghana
Driefontein
Kloof
Beatrix
6,545.9
3,530.5
–
5,066.3
3,083.8
–
3,055.2
2,037.6
–
South
Deep1
1,398.1
1,188.0
–
Tarkwa
Damang
4,840.3
3,046.5
(162.5)
1,582.7
1,193.3
(20.8)
Peru
Cerro
Corona
1,656.4
778.7
(37.0)
3,015.4
1,982.5
1,017.6
210.1
1,956.3
410.2
914.7
1,956.5
Australia Corporate
and
other2
St Ives/
Agnew
4,942.0
2,975.5
10.0
Group
consoli-
dation
29,086.9
17,833.9
(210.3)
11,463.3
–
–
–
–
INCOME STATEMENT
for the year ended
30 June 2009
Revenue
Operating costs
Gold inventory change
Operating profit
Amortisation and
depreciation
624.9
692.7
435.2
283.2
495.3
Net operating profit
Other income/(expenditure)
Current taxation
Deferred taxation
2,390.5
(189.6)
603.2
176.4
1,289.8
(153.3)
254.0
109.7
Profit/(loss) for the year
1,421.3
772.8
Profit attributable to :
– Ordinary shareholders
– Minority shareholders
1,421.3
–
772.8
–
582.4
(63.5)
0.9
196.2
321.8
321.8
–
(73.1)
55.0
–
(7.2)
(10.9)
(10.9)
–
1,461.0
(128.6)
145.2
286.5
900.7
640.4
260.3
169.4
240.8
(87.2)
74.7
(2.5)
81.4
57.9
23.5
350.7
564.0
(160.1)
145.4
29.5
229.0
184.8
44.2
945.3
145.6
4,142.3
1,011.2
3.5
189.3
196.5
(145.6)
(2,389.6)
145.7
(190.0)
7,321.0
(3,113.4)
1,558.4
795.1
628.9
(2,490.9)
1,854.1
628.9
–
(2,481.4)
(9.5)
1,535.6
318.5
Group
total
BALANCE SHEET
as at 30 June 2009
Total assets
Total liabilities (excluding
deferred taxation)
Deferred taxation
7,801.8
5,847.1
2,113.4
1,183.0
7,570.6
1,230.0
6,616.7
7,034.1
25,857.9
65,254.6
Capital expenditure
1,034.4
958.6
629.4
1,020.5
1,812.0
2,614.6
1,794.2
1,812.9
1,676.7
559.0
672.9
674.8
–
1,329.6
1,173.5
232.1
142.1
152.1
2,213.7
51.0
1,027.0
770.1
5,992.7
(151.7)
16,456.4
6,128.8
1,052.2
897.3
92.7
7,649.2
Continuing operations
South Africa
Ghana
Driefontein
Kloof
Beatrix
5,501.9
2,932.5
–
4,804.8
2,690.0
–
2,615.2
1,724.7
–
South
Deep1
1,342.1
1,263.7
–
Tarkwa
Damang
3,863.7
2,058.7
(35.8)
1,166.4
858.6
(77.0)
2,569.4
2,114.8
890.5
78.4
1,840.8
384.8
548.3
591.4
292.6
2,021.1
(101.9)
500.8
185.1
1,523.4
(75.5)
323.7
176.3
597.9
(59.2)
1.3
205.0
231.8
(153.4)
(85.1)
–
(95.4)
331.8
1,509.0
1.1
331.3
104.2
101.1
283.7
(1.6)
54.3
40.4
INCOME STATEMENT
for the year ended
30 June 2008
Revenue
Operating costs
Gold inventory change
Operating profit
Amortisation and
depreciation
Net operating profit
Other income/(expenditure)
Current taxation
Deferred taxation
Income from discontinued
operations3
Profit on sale of
Venezuelan assets3
Profit/(loss) for the year
1,233.3
947.9
332.4
(143.1)
1,074.6
187.4
1,233.3
–
947.9
–
332.4
–
(143.1)
–
764.0
310.6
133.2
54.2
Peru
Cerro
Corona
Australia Corporate
St Ives/
Agnew
Total
and continuing
other2 operations
Dis-
continued
operations
–
–
–
–
–
–
–
–
–
–
–
–
3,715.4
2,355.0
198.3
1,162.1
775.5
386.6
69.2
92.4
95.1
–
–
–
–
23,009.5
13,883.2
85.5
9,040.8
153.1
3,025.6
(153.1)
882.1
109.3
(186.1)
6,015.2
629.1
1,413.1
524.6
268.3
805.8
4,706.6
268.3
–
812.2
(6.4)
4,348.2
358.4
299.6
191.3
8.6
99.7
14.8
84.9
(41.1)
5.9
0.9
37.0
74.2
111.2
109.3
1.9
Dis-
continued
operations
Group
total
7,480.0
5,983.4
2,734.9
1,110.4
5,967.4
1,116.7
6,467.7
7,700.8
24,354.2
62,915.5
1,764.9
1,617.7
1,016.4
1,399.6
1,567.0
897.7
626.6
476.6
576.6
596.6
–
784.7
1,005.3
910.3
202.9
143.2
3,089.3
24.3
1,086.7
691.7
5,160.5
(8.9)
14,932.4
5,421.9
1,541.0
204.2
2,533.0
1,025.5
434.8
9,013.9
70.0
–
–
–
The above is a geographical analysis presented by location of assets
1 The income statement and balance sheet of South Deep is that of the operating mine and does not include any of the adjustments made in respect of the purchase price allocation. South Deep Gold Mine, being an incorporated
joint venture, is not liable for taxation. Taxation included in South Deep is indicative, as tax is provided in the holding company at a rate of 40 per cent.
2 Included in “Corporate and other” is goodwill relating to the acquisition of South Deep.
3 The Venezuelan assets (including Choco 10) were sold during F2008 and as such are classed as discontinued operations for accounting purposes.
4 Included in capital expenditure “Corporate and other” is capital expenditure invested in discontinued operations.
Profit attributable to:
– Ordinary shareholders
– Minority shareholders
BALANCE SHEET
as at 30 June 2008
Total assets
Total liabilities (excluding
deferred taxation)
Deferred taxation
Capital expenditure4
SEGMENT REPORT continued
Financial summary – US dollar million
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
213
Peru
Cerro
Corona
Australia Corporate
and
other2
St Ives/
Agnew
Group
consoli-
dation
South Africa
Ghana
Continuing operations
Tarkwa
Damang
Driefontein
Kloof
Beatrix
726.5
391.8
–
334.7
69.4
265.3
(21.0)
66.9
19.6
157.7
157.7
–
562.3
342.3
–
220.0
76.9
143.2
(17.0)
28.2
12.2
85.8
85.8
–
339.1
226.1
–
112.9
48.3
64.6
(7.0)
0.1
21.8
35.7
35.7
–
South
Deep1
155.2
131.9
–
23.3
31.4
(8.1)
6.1
–
(0.8)
(1.2)
(1.2)
–
537.2
338.1
(18.0)
217.1
55.0
162.2
(14.3)
16.1
31.8
100.0
71.1
28.9
175.7
132.4
(2.3)
45.5
18.8
26.7
(9.6)
8.3
(0.3)
9.1
6.5
2.6
183.8
86.4
(4.1)
101.5
38.9
62.6
(17.8)
16.1
3.3
25.4
20.5
4.9
548.5
330.3
1.1
217.1
104.9
112.2
0.4
21.0
21.8
69.8
69.8
–
–
–
–
–
16.2
(16.2)
(265.2)
16.2
(21.1)
(276.5)
(275.4)
(1.1)
3,228.3
1,979.3
(23.3)
1,272.3
459.7
812.6
(345.4)
173.0
88.2
205.8
170.5
35.3
Group
total
968.0
725.4
262.2
146.9
939.3
152.6
820.9
872.7
3,208.2
8,096.2
324.4
222.6
114.8
224.9
208.0
106.4
69.4
83.5
69.9
83.7
–
113.3
165.0
145.6
201.1
28.8
17.6
16.9
274.7
6.3
116.8
127.4
95.5
99.6
743.5
(18.8)
10.3
2,041.7
760.4
849.0
Continuing operations
S
e
c
t
i
o
n
3
:
A
n
n
u
a
l
i
F
n
a
n
c
a
i
l
S
t
a
t
e
m
e
n
t
s
:
S
e
g
m
e
n
t
R
e
p
o
r
t
South Africa
Ghana
Driefontein
Kloof
Beatrix
756.8
403.4
–
353.4
75.4
278.0
(14.0)
68.9
25.5
660.9
370.0
–
290.9
81.3
209.6
(10.4)
44.5
24.3
359.7
237.2
–
122.5
40.2
82.2
(8.2)
0.2
28.2
South
Deep1
184.6
173.8
–
10.8
31.9
(21.1)
(11.7)
–
(13.1)
Tarkwa
Damang
531.5
283.2
(4.9)
253.2
45.6
207.6
0.2
45.6
14.3
160.4
118.1
(10.6)
52.9
13.9
39.0
(0.1)
7.5
5.6
Profit/(loss) for the year
169.6
130.4
45.7
(19.7)
147.8
25.9
169.6
–
130.4
–
45.7
–
(19.7)
–
105.1
42.7
18.4
7.5
Peru
Cerro
Corona
Australia Corporate
and
St Ives/
other2
Agnew
Total
continuing
operations
Dis-
continued
operations
–
–
–
–
–
–
–
–
–
–
–
–
511.1
323.9
27.3
159.8
106.7
53.1
9.5
12.7
13.1
–
–
–
–
21.2
(21.2)
121.4
15.0
(25.6)
3,165.0
1,909.7
11.8
1,243.5
416.2
827.3
86.6
194.4
72.2
36.8
110.8
647.3
36.8
–
111.6
(0.9)
598.0
49.3
41.2
26.3
1.2
13.7
2.0
11.7
(5.7)
0.8
0.1
5.1
10.2
15.3
15.0
0.3
Dis-
continued
operations
Group
total
935.0
747.9
341.9
138.9
745.9
139.6
808.5
962.6
3,044.3
7,864.5
220.6
202.2
139.8
175.0
195.9
123.5
78.3
59.6
79.3
74.6
–
107.9
125.7
113.8
212.0
25.4
17.9
28.1
386.2
3.0
348.4
135.8
86.5
141.0
645.1
(1.2)
1,866.6
677.7
59.9
1,239.9
9.6
–
–
–
The above is a geographical analysis presented by location of assets.
US dollar figures may not add as they are rounded independently.
Year end exchange rates ZAR/US$8.06 and ZAR/US$8.00 for F2009 and F2008 respectively.
Average exchange rates ZAR/US$9.01 and ZAR/US$7.27 for F2009 and F2008 respectively.
1 The income statement and balance sheet of South Deep is that of the operating mine and does not include any of the adjustments made in respect of the purchase price allocation. South Deep Gold Mine, being an incorporated
joint venture, is not liable for taxation. Taxation included in South Deep is indicative, as tax is provided in the holding company at a rate of 40 per cent.
2 Included in Corporate and Other is goodwill relating to the acquisition of South Deep.
3 The Venezuelan assets (including Choco 10) were sold during F2008 and as such are classed as discontinued operations for accounting purposes.
4 Included in capital expenditure “Corporate and other” is capital expenditure invested in discontinued operations.
INCOME STATEMENT
for the year ended
30 June 2009
Revenue
Operating costs
Gold inventory change
Operating profit
Amortisation and
depreciation
Net operating profit
Other income/(expenditure)
Current taxation
Deferred taxation
Profit/(loss) for the year
Profit attributable to:
– Ordinary shareholders
– Minority shareholders
BALANCE SHEET
as at 30 June 2009
Total assets
Total liabilities (excluding
deferred taxation)
Deferred taxation
Capital expenditure
INCOME STATEMENT
for the year ended
30 June 2008
Revenue
Operating costs
Gold inventory change
Operating profit
Amortisation and
depreciation
Net operating profit
Other income/(expenditure)
Current taxation
Deferred taxation
Income from discontinued
operations3
Profit on sale of
Venezuelan assets3
Profit attributable to:
– Ordinary shareholders
– Minority shareholders
BALANCE SHEET
as at 30 June 2008
Total assets
Total liabilities (excluding
deferred taxation)
Deferred taxation
Capital expenditure4
214
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
SHAREHOLDERS’ INFORMATION
(cid:40)(cid:85)(cid:72)(cid:83)(cid:96)(cid:90)(cid:80)(cid:90)(cid:3)(cid:86)(cid:77)(cid:3)(cid:90)(cid:79)(cid:72)(cid:89)(cid:76)(cid:79)(cid:86)(cid:83)(cid:75)(cid:76)(cid:89)(cid:90)(cid:187)(cid:3)(cid:80)(cid:85)(cid:77)(cid:86)(cid:89)(cid:84)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:3)(cid:72)(cid:91)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
Shareholder spread
1 –
1,001 –
10,001 –
1,000
10,000
100,000
100,001 – 1,000,000
1,000,001 and above
Total
Distribution of shareholders
American Depository Receipts
Unit Trusts/Mutual Fund
Pension Funds
Other Managed Funds
Custodians
Black Economic Empowerment
Foreign Government
Insurance Companies
Private Investors
Investment Trust
Charity
Hedge Fund
Local Authority
University
Remainder
Total
Non-public/public shareholders
Non-public shareholders
Directors and associates
Public shareholders
Total
Number of
shareholders
19.684
2,617
571
248
58
23,178
Number of
shareholders
90
259
198
85
78
2
19
14
24
4
6
3
2
2
22 392
23,178
%
84.93
11.29
2.46
1.07
0.25
Number of
shares
3,774,742
7,802,255
20,628,489
65,926,249
606,618,114
%
0.54
1.11
2.93
9.35
86.07
100.00
704,749,849
100.00
%
0.39
1.12
0.85
0.37
0.34
0.01
0.08
0.06
0.1
0.02
0.03
0.01
0.01
0.01
96.6
Number of
shares
298,196,921
144,833,151
88,441,020
52,633,446
42,790,802
21,614,255
17,609,605
13,661,872
10,461,377
5,354,726
864,756
494,286
357,590
157,381
7,278,661
%
42.31
20.55
12.55
7.47
6.07
3.07
2.5
1.94
1.48
0.76
0.12
0.07
0.05
0.02
1.04
100.00
704,749,849
100.00
Number of
shareholders
%
Number of
shares
4
23,174
23,178
0.02
99.98
156,344
704,593,505
100.00
704,749,849
%
0.02
99.98
100.00
%
5.51
5.13
5.01
4.42
3.90
3.22
3.11
3.05
Beneficial shareholders holding of 3% or more
Tradewinds Global Investors LLC
Arnhold & S.Bleichroeder Advisers LLC
Public Investment Corporation of South Africa
BlackRock Investment Management (UK) Limited
Capital World Investors
Old Mutual Investment Corporation South Africa (Pty) Limited
Paulson & Co Inc.
Mvelaphanda Gold (Pty) Limited
Number of
shares
38,822,278
36,184,489
35,297,817
31,148,016
27,500,000
22,730,194
21,923,223
21,506,918
Total
235,112,935
33.35
Foreign custodian shareholders holding of 3% or more
Bank of New York Unrestricted Depository Receipts
JP Morgan Chase (Custodian)
Bank of New York, Brussels (Custodian)
Strate Street Bank and Trust (Custodian)
Number of
Shares
298,196,921
41,262,838
27,338,820
50,669,697
%
42.31
5.86
3.88
7.19
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G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
215
OPERATING AND FINANCIAL INFORMATION BY MINE
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
(All companies wholly owned except for Tarkwa and Damang in Ghana (71.1 per cent) and Cerro Corona in Peru (80.7 per cent). Choco 10 in Venezuela
was 95 per cent owned).
South Africa Region
Driefontein Mine
Year to 30 June
Tons
milled
Yield*
’000
Cash cost
g/ton
Kilograms
ounces
US$/oz SA R million US$ million
Gold produced
Net earnings
1952-2004
208,703,000
14.9
3,114,792
100,143
2005
2006
2007
2008
2009
Total
6,694,000
6,867,000
6,652,000
5,981,000
6,217,000
5.4
5.2
4.8
4.8
4.2
36,162
35,755
31,618
28,865
25,814
1,163
1,150
1,017
928
830
241,114,000
13.6
3,273,006
105,230
Includes West Driefontein from 1952 and East Driefontein from 1972.
*Combined surface and underground yield.
n/a
292
315
348
412
448
n/a
332.1
645.0
1,004.3
1,233.3
1,421.3
n/a
53.5
100.8
139.5
169.5
157.7
Kloof Mine
Year to 30 June
Tons
milled
1939-2004
238,271,900
2005
2006
2007
2008
2009
Total
4,655,000
3,666,000
3,829,000
3,953,000
3,319,000
257,693,900
Gold produced
Net earnings
Yield*
’000
Cash cost
g/ton
Kilograms
ounces
US$/oz SA R million US$ million
9.0
6.9
7.8
7.5
6.5
6.0
8.9
2,148,644
32,258
28,429
28,705
25,533
19,998
69,080
1,037
914
923
821
643
2,283,567
73,418
n/a
330
374
366
430
507
n/a
(39.2)
209.9
790.3
947.9
772.8
n/a
(6.3)
32.8
109.8
130.4
85.8
Includes Venterspost from 1939, Libanon from 1949, Kloof from 1968 and Leeudoorn from 1991.
* Combined surface and underground yield.
Beatrix Mine (includes Oryx Mine as from F2000)
Year to 30 June
1985-2004
2005
2006
2007
2008
2009
Total
Tons
milled
52,983,000
4,181,000
3,551,000
3,590,000
3,215,000
2,991,000
70,511,000
Gold produced
Net earnings
Yield*
’000
Cash cost
g/ton
Kilograms
ounces
US$/oz SA R million US$ million
5.5
4.6
5.2
4.7
4.2
4.1
5.3
292,099
9,391
19,418
18,541
16,903
13,625
12,164
624
596
543
438
391
372,750
11,984
n/a
352
354
377
515
552
n/a
(93.8)#
185.3
370.8
332.4
321.8
n/a
(15.1)#
29.0
51.5
45.7
35.7
Beatrix and Oryx became one tax entity as from F2000.
* Combined surface and underground yield.
# Includes impairment write-down of R60 million (US$10 million).
216
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
OPERATING AND FINANCIAL INFORMATION BY MINE continued
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
Oryx Mine – (changed name to 4 shaft, known as West section from F2005)
Gold produced
Net earnings
Year to 30 June
Tons
milled
Yield*
g/ton
Cash cost
Kilograms
ounces
US$/oz SA R million US$ million
1985-1999
5,656,000
3.2
18,182
585
n/a
(768.0)
(123.5)
Included in Beatrix from F2000.
South Deep Mine
Gold produced
Net earnings
Year to 30 June
Tons
milled
Yield*
g/ton
Kilograms
’000
ounces
Cash cost
US$/oz SA R million US$ million
2007#
2008
2009
Total
1,104,000
1,367,000
1,241,000
3,712,000
4.6
5.3
4.4
4.8
5,076
7,220
5,434
17,730
163
232
175
570
595
727
717
(46.8)
(143.1)
(10.9)
(6.5)
(19.7)
(1.2)
# For the 7 months ended 30 June 2007, since acquisition control.
* Combined surface and underground yield.
West Africa Region
Ghana
Tarkwa Mine – total managed
Gold produced
Net earnings
(before minorities)
Year to 30 June
Tons
treated
Yield
g/ton
Kilograms
’000
ounces
Cash cost
US$/oz SA R million US$ million
1994-2004
2005
2006
2007
2008
2009
Total
71,979,559
19,633,000
21,487,000
22,639,000
22,035,000
21,273,000
179,046,559
1.2
1.1
1.0
1.0
0.9
0.9
1.1
87,495
21,051
22,060
21,684
20,095
19,048
191,433
2,813
677
709
697
646
612
6,155
n/a
234
292
333
430
521
1,183.0
427.5
626.2
841.9
1,074.6
900.7
142.0
68.8
97.8
116.9
147.8
100.0
Surface operation from F1999.
Damang Mine – total managed
Year to 30 June
Tons
treated
Yield
g/ton
Kilograms
’000
ounces
Cash cost
US$/oz SA R million US$ million
Gold produced
Net earnings
(before minorities)
2002#-2004
2005
2006
2007
2008
2009
Total
12,064,000
5,215,000
5,328,000
5,269,000
4,516,000
4,991,000
37,383,000
1.9
1.5
1.4
1.1
1.3
1.2
1.5
23,291
7,703
7,312
5,843
6,041
6,233
749
248
235
188
194
200
56,423
1,814
# F2002 – For the 5 months ended 30 June, since acquisition.
226
282
341
473
551
660
459.1
116.7
174.2
115.1
187.4
81.4
57.3
18.8
27.2
16.0
25.9
9.0
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G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
217
Australasia Region
St Ives Mine
Year to 30 June
Tons
treated
Yield
g/ton
Kilograms
’000
ounces
Cash cost
US$/oz
Cash cost
A$/oz
Gold produced
2002#-2004
2005
2006
2007
2008
2009
Total
15,628,000
6,332,000
6,690,000
6,759,000
7,233,000
7,262,000
49,904,000
2.8
2.6
2.3
2.2
1.8
1.8
2.3
43,445
16,393
15,440
15,146
12,992
13,322
116,738
1,397
527
496
487
418
428
3,753
# F2002 – For the 7 months ended 30 June, since acquisition.
Agnew Mine
Gold produced
224
336
339
424
582
596
354
447
453
540
649
805
Year to 30 June
Tons
treated
Yield
g/ton
Kilograms
’000
ounces
Cash cost
US$/oz
Cash cost
A$/oz
2002#-2004
2005
2006
2007
2008
2009
Total
3,129,000
1,170,000
1,323,000
1,323,000
1,315,000
1,066,000
9,326,000
4.3
5.6
5.2
5.0
4.8
5.6
4.9
13,302
6,609
6,916
6,605
6,336
5,974
45,742
428
212
222
212
204
192
1,471
237
233
266
295
445
401
380
310
355
377
496
541
# For the 7 months ended 30 June, since acquisition.
St Ives/Agnew
Net earnings
Year to 30 June
SA R million US$ million
A$ million
2002#-2004
2005
2006
2007
2008
2009
Total
1,428.4
151.1
251.8
298.6
268.3
628.9
3,027.1
156.9
24.3
39.3
41.5
36.8
69.8
368.6
263.8
32.4
52.6
52.8
41.2
94.3
537.1
# F2002 – For the 7 months ended 30 June 2002, since acquisition.
218
218
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
OPERATING AND FINANCIAL INFORMATION BY MINE continued
(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:75)(cid:3)(cid:26)(cid:23)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:3)(cid:25)(cid:23)(cid:23)(cid:32)
South America Region
Peru
Cero Corona Mine – total managed
Gold produced##
Net earnings
(before minorities)
Year to 30 June
# 2009
Total
Tons
treated
4,547,000
4,547,000
Yield
g/ton
1.5
1.5
Kilograms
6,822
6,822
’000
ounces
219
219
Cash cost
US$/oz SA R million US$ million
369
229.0
25.4
# Transition form project to operation from September 2008.
## Cerro Corona is a Gold and Copper mine. As such gold produced is based on gold equivalent ounces.
Discontinued operations
Venezuela
Choco 10 Mine – total managed
Year to 30 June
Tons
treated
Yield
g/ton
Kilograms
’000
ounces
Cash cost
US$/oz SA R million US$ million
Gold produced
Net earnings
(before minorities)
# 2006
2007
## 2008
Total
454,000
1,001,000
761,000
2,216,000
1.7
1.7
1.4
1.6
787
1,699
1,052
3,538
25
55
34
114
# For the 4 months ended 30 June, since acquisition.
## For the approximate 3.5 months to 11 October 2007, being the effective date of sale.
294
523
729
21.0
(36.8)
48.5
3.3
(5.1)
6.7
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NOTICE OF ANNUAL GENERAL MEETING
Gold Fields Limited (Registration number 1968/004880/06)
Share code: GFI
Issuer code: GOGOF
ISIN: ZAE000018123
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
219
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:
Notice is hereby given that the annual general meeting of shareholders of Gold Fields Limited will be held at 150 Helen Road,
Sandown, Sandton on Wednesday, 4 November 2009 at 09:00, to consider and, if deemed fit, to pass, with or without modification,
the following ordinary and special resolutions in the manner required by the Companies Act, 61 of 1973, as amended, and subject
to the Listings Requirements of JSE Limited and other stock exchanges on which the company’s ordinary shares are listed.
Ordinary Resolution Number 1
Adoption of financial statements
“Resolved that the consolidated audited annual financial statements of the company and its subsidiaries, incorporating the auditors’
and directors’ reports for the year ended 30 June 2009, be received and adopted.”
Ordinary Resolution Number 2
Re-election of director
“Resolved that Ms CA Carolus who was appointed to the Board on 10 March 2009 and who retires in terms of the articles of
association, and who is eligible and available for re-election, is hereby re-elected as a director of the company.” A brief CV is set
out on page 17 of the annual report.
Ordinary Resolution Number 3
Re-election of director
“Resolved that Mr R Dañino who was appointed to the Board on 10 March 2009 and who retires in terms of the articles of
association, and who is eligible and available for re-election, is hereby re-elected as a director of the company.” A brief CV is set
out on page 17 of the annual report.
Ordinary Resolution Number 4
Re-election of director
“Resolved that Mr AR Hill who was appointed to the Board on 21 August 2009 and who retires in terms of the articles of association,
and who is eligible and available for re-election, is hereby re-elected as a director of the company.” A brief CV is set out on page
17 of the annual report.
Ordinary Resolution Number 5
Re-election of director
“Resolved that Mr NJ Holland who retires in terms of the articles of association, and who is eligible and available for re-election, is
hereby re-elected as a director of the company.” A brief CV is set out on page 16 of the annual report.
Ordinary Resolution Number 6
Re-election of director
“Resolved that Mr RP Menell who was appointed to the Board on 1 October 2008 and who retires in terms of the articles of
association, and who is eligible and available for re-election, is hereby re-elected as a director of the company.” A brief CV is set
out on page 16 of the annual report.
Ordinary Resolution Number 7
Placement of ordinary shares under the control of the directors
“Resolved that, the entire authorised but unissued ordinary share capital of the company from time to time, after setting aside so
many shares as may be required to be allotted and issued by the company in terms of any share plan or scheme for the benefit
of employees and/or directors (whether executive or non-executive), be and is hereby placed under the control of the directors
of the company until the next annual general meeting, on the basis that such directors be and are hereby authorised in terms
of section 221(2) of the Companies Act 61 of 1973, as amended (Companies Act), to allot and issue all or part thereof in their
discretion, subject to the provisions of the Companies Act and the Listings Requirements of JSE Limited.”
220
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
NOTICE OF ANNUAL GENERAL MEETING continued
Ordinary Resolution Number 8
Placement of non-convertible redeemable preference shares under the control of the directors
“Resolved that the non-convertible redeemable preference shares in the authorised but unissued share capital of the
company be and they are hereby placed under the control of the directors for allotment and issue at the discretion of the
directors of the company, subject to all applicable legislation, the requirements of any recognised stock exchange on which
the shares in the capital of the company may from time to time be listed and with such rights and privileges attached thereto
as the directors may determine.”
Ordinary Resolution Number 9
Issuing equity securities for cash
“Resolved that, pursuant to the articles of association of the company, and subject to the passing of ordinary resolution number 7,
the directors of the company be and are hereby authorised until the forthcoming annual general meeting of the company
(whereupon this authority shall lapse unless it is renewed at the aforementioned annual general meeting, provided that it shall not
extend beyond 15 (fifteen) months of the date of this meeting), to allot and issue equity securities for cash subject to the Listings
Requirements of JSE Limited (JSE) and subject to the Companies Act, 61 of 1973, as amended on the following basis:
(a) the allotment and issue of equity securities for cash shall be made only to persons qualifying as public shareholders as defined
in the Listings Requirements of the JSE and not to related parties;
(b) equity securities which are the subject of issues for cash:
(i)
(ii)
in the aggregate in any one financial year may not exceed 10 per cent of the company’s relevant number of equity securities
in issue of that class;
of a particular class, will be aggregated with any securities that are compulsorily convertible into securities of that class,
and, in the case of the issue of compulsorily convertible securities, aggregated with the securities of that class into which
they are compulsorily convertible;
(iii) as regards the number of securities which may be issued (the 10 per cent number), shall be based on the number of
securities of that class in issue added to those that may be issued in future (arising from the conversion of options/
convertible securities), at the date of such application, less any securities of the class issued, or to be issued in future
arising from options/convertible securities issued, during the current financial year, plus any securities of that class to be
issued pursuant to a rights issue which has been announced, is irrevocable and is fully underwritten or acquisition (which
had final terms announced) may be included as though they were securities in issue at the date of application;
(c) the maximum discount at which equity securities may be issued is 10 (ten) per cent of the weighted average traded price on
the JSE of such equity securities over the 30 (thirty) business days prior to the date that the price of the issue is determined or
agreed by the directors of the company;
(d) after the company has issued equity securities for cash which represent, on a cumulative basis within a financial year,
5 (five per cent or more of the number of equity securities of that class in issue prior to that issue, the company shall publish
an announcement containing full details of the issue, including the effect of the issue on the net asset value and earnings per
share of the company; and
(e) the equity securities which are the subject of the issue for cash are of a class already in issue or where this is not the case,
must be limited to such securities or rights that are convertible into a class already in issue.”
In terms of the Listings Requirements of the JSE, a 75 per cent majority is required of votes cast in favour of such resolution by
all equity securities holders present or represented by proxy at the general meeting convened to approve the above resolution
regarding the waiver of the pre-emptive rights.
Ordinary Resolution Number 10
Amendments to the Gold Fields Limited 2005 Share Plan
“Resolved that, the Gold Fields Limited 2005 Share Plan adopted by the company at its Annual General Meeting on 17 November
2005 (the Share Plan) be and is hereby amended in accordance with the Deed of Amendment tabled at the Annual General Meeting
and initialled by the Chairman for the purpose of identification.”
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
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Explanatory note on Resolution Number 10
The Deed of Amendment provides for the following two amendments to the Share Plan:
(i)
The Share Plan affords eligible employees the opportunity of acquiring Performance Allocated Share Appreciation Rights. The
current rules of the Share Plan provide that even if an eligible employee ceases to be employed by the Group as a result of his
lawful summary dismissal or his dismissal on the grounds of his proven dishonest, fraudulent or grossly negligent conduct he
is able to retain his Share Appreciation Rights which have vested in him at the time of such dismissal. However, this provision
is not aligned with Gold Fields’ ethics policy or the provisions of the previous option scheme, which provides that if an
employee ceases to be employed by the Group as a result of his lawful summary dismissal or his dismissal on the grounds of
his proven dishonest, fraudulent or grossly negligent conduct, he would forfeit his vested options. The proposed amendment
will, if adopted by shareholders, have the effect that all Share Appreciation Rights allocated to an employee, who ceases to be
employed by the Group as a result of his lawful summary dismissal or his dismissal on the grounds of his proven dishonest,
fraudulent or grossly negligent conduct, will be forfeited, whether or not such Share Appreciation Rights have vested in such
employee;
(ii)
The current rules of the Share Plan provide that in the event of a no-fault termination of employment, the maximum number of
Performance Vesting Restricted Shares to be settled to such employee shall be adjusted as if the Group had met the Target
Performance Criteria. The proposed amendment will, if adopted by shareholders, have the effect that where the Board has
already determined, prior to the date of termination of employment, that the Performance Criteria in respect of an Award have
not been satisfied or exceeded, the number of Performance Vesting Restricted Shares to be settled to such employee shall be
adjusted in the manner set out in the relevant Award Letter.
In terms of the Listings Requirements of the JSE, a 75 per cent majority is required of votes cast in favour of the above resolution
by all equity securities holders present or represented by proxy at the general meeting convened to approve the above resolution
regarding the amendment of the Share Plan.
Ordinary Resolution Number 11
Award of rights to non-executive directors under The Gold Fields Limited 2005 Non-executive Share Plan
“Resolved that:
(a) The following non-executive directors are awarded rights to the following numbers of shares in terms of The Gold Fields Limited
2005 Non-executive Share Plan:
(i) AJ Wright – 6,300;
(ii) K Ansah – 4,100;
(iii) CA Carolus – 4,100;
(iv) R Dañino – 4,100;
(v) JG Hopwood – 4,100;
(vi) RP Menell – 4,100;
(vii) DN Murray – 4,100;
(viii) DMJ Ncube – 4,100;
(ix) RL Pennant-Rea – 4,100;
(x) CI von Christierson – 4,100;
(xi) GM Wilson – 4,100.
(b) So many unissued ordinary shares in the capital of the company as are necessary to allot and issue the shares in respect of
which rights have been awarded to non-executive directors under this ordinary resolution number 11, be and are hereby placed
under the control of the directors of the company who are specifically authorised in terms of section 221(2) of the Companies
Act 61 of 1973, as amended, to allot and issue all and any of such shares, in accordance with the terms and conditions of The
Gold Fields Limited 2005 Non-executive Share Plan, as same may be amended from time to time.”
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G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
NOTICE OF ANNUAL GENERAL MEETING continued
Explanatory note on Resolution Number 11
The reasons for and effect of ordinary resolution number 11 are set out in the directors’ report which forms part of the annual
financial statements of the company, which accompany this notice of annual general meeting. This resolution relates to The Gold
Fields Limited 2005 Non-executive Share Plan. Copies of The Gold Fields Limited 2005 Non-executive Share Plan are available for
inspection at the registered office of the company from 08:00 to 17:00 until the date of the annual general meeting.
Ordinary Resolution Number 12
Increase of non-executive directors’ fees
“Resolved that the following remuneration shall be payable to non-executive directors of the company with effect from 1 January
2010;
Retainer fee for:
(cid:115)(cid:0) (cid:52)(cid:72)(cid:69)(cid:0)(cid:35)(cid:72)(cid:65)(cid:73)(cid:82)(cid:77)(cid:65)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:34)(cid:79)(cid:65)(cid:82)(cid:68)(cid:0)
(cid:115)(cid:0) (cid:52)(cid:72)(cid:69)(cid:0)(cid:35)(cid:72)(cid:65)(cid:73)(cid:82)(cid:77)(cid:65)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:33)(cid:85)(cid:68)(cid:73)(cid:84)(cid:0)(cid:35)(cid:79)(cid:77)(cid:77)(cid:73)(cid:84)(cid:84)(cid:69)(cid:69)(cid:0)
(cid:115)(cid:0) (cid:0)(cid:52)(cid:72)(cid:69)(cid:0)(cid:35)(cid:72)(cid:65)(cid:73)(cid:82)(cid:77)(cid:65)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:35)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76)(cid:0)(cid:48)(cid:82)(cid:79)(cid:74)(cid:69)(cid:67)(cid:84)(cid:83)(cid:0)(cid:35)(cid:79)(cid:78)(cid:84)(cid:82)(cid:79)(cid:76)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:50)(cid:69)(cid:86)(cid:73)(cid:69)(cid:87)(cid:0)(cid:35)(cid:79)(cid:77)(cid:77)(cid:73)(cid:84)(cid:84)(cid:69)(cid:69)(cid:12)(cid:0)(cid:46)(cid:79)(cid:77)(cid:73)(cid:78)(cid:65)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)
Governance Committee, Remuneration Committee and Safety, Health and Sustainable
Development Committee
Retainer fee for:
(cid:115)(cid:0) (cid:45)(cid:69)(cid:77)(cid:66)(cid:69)(cid:82)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:34)(cid:79)(cid:65)(cid:82)(cid:68)(cid:0)(cid:8)(cid:69)(cid:88)(cid:67)(cid:76)(cid:85)(cid:68)(cid:73)(cid:78)(cid:71)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:35)(cid:72)(cid:65)(cid:73)(cid:82)(cid:77)(cid:65)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:34)(cid:79)(cid:65)(cid:82)(cid:68)(cid:9)(cid:0)
(cid:115)(cid:0) (cid:45)(cid:69)(cid:77)(cid:66)(cid:69)(cid:82)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:33)(cid:85)(cid:68)(cid:73)(cid:84)(cid:0)(cid:35)(cid:79)(cid:77)(cid:77)(cid:73)(cid:84)(cid:84)(cid:69)(cid:69)(cid:0)
(cid:115)(cid:0) (cid:0)(cid:45)(cid:69)(cid:77)(cid:66)(cid:69)(cid:82)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:35)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76)(cid:0)(cid:48)(cid:82)(cid:79)(cid:74)(cid:69)(cid:67)(cid:84)(cid:83)(cid:0)(cid:35)(cid:79)(cid:78)(cid:84)(cid:82)(cid:79)(cid:76)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:50)(cid:69)(cid:86)(cid:73)(cid:69)(cid:87)(cid:0)(cid:35)(cid:79)(cid:77)(cid:77)(cid:73)(cid:84)(cid:84)(cid:69)(cid:69)(cid:12)(cid:0)(cid:46)(cid:79)(cid:77)(cid:73)(cid:78)(cid:65)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)
(cid:50)(cid:17)(cid:12)(cid:19)(cid:18)(cid:21)(cid:12)(cid:16)(cid:16)(cid:16)(cid:0) (cid:80)(cid:69)(cid:82)(cid:0)(cid:65)(cid:78)(cid:78)(cid:85)(cid:77)
(cid:0)(cid:50)(cid:17)(cid:25)(cid:21)(cid:12)(cid:16)(cid:16)(cid:16)(cid:0) (cid:80)(cid:69)(cid:82)(cid:0)(cid:65)(cid:78)(cid:78)(cid:85)(cid:77)
R150,000 per annum
(cid:0)(cid:50)(cid:18)(cid:23)(cid:21)(cid:12)(cid:16)(cid:16)(cid:16)(cid:0) (cid:80)(cid:69)(cid:82)(cid:0)(cid:65)(cid:78)(cid:78)(cid:85)(cid:77)
(cid:0)(cid:50)(cid:17)(cid:18)(cid:16)(cid:12)(cid:16)(cid:16)(cid:16)(cid:0) (cid:80)(cid:69)(cid:82)(cid:0)(cid:65)(cid:78)(cid:78)(cid:85)(cid:77)
Governance Committee, Remuneration Committee and Safety, Health and Sustainable
Development Committee
R95,000 per annum
Travel allowance payable to directors who travel internationally to attend meetings
US$5,400 per international
trip required
Explanatory note on Resolution Number 12
It has become necessary to change the basis on which the remuneration of non-executive directors has been determined. The
role of non-executive directors is under increasing focus of late with greater accountability and risk attached to the position. As
Gold Fields is a global company and thus requires directors of international stature, its remuneration structure should take account
of international as well as local norms in determining the appropriate remuneration for its directors. There is also an increasing
practice of paying a single annual fee to directors, adjusted depending on their roles and participation in the Board and its various
sub-committees.
It is therefore proposed that a flat fee be paid to all non-executive directors, as per the resolution above, which would be a 12 per
cent increase on the fees approved and shares awarded at the last annual general meeting.
It is further proposed that the travel allowance payable to directors who travel internationally to attend meetings be increased from
US$5,000 per international trip required to US$5,400 per international trip required.
Special Resolution Number 1
Acquisition of company’s own shares
“Resolved that, pursuant to the articles of association of the company, the company or any subsidiary of the company is hereby
authorised by way of general approval, from time to time, to acquire ordinary shares in the share capital of the company in
accordance with the Companies Act, 61 of 1973 and the JSE Listings Requirements, provided that:
(i)
the number of ordinary shares acquired in any one financial year shall not exceed 20 per cent of the ordinary shares in issue
at the date on which this resolution is passed;
this authority shall lapse on the earlier of the date of the next annual general meeting of the company or the date 15 months
after the date on which this resolution is passed;
(ii)
(iii) the repurchase must be effected through the order book operated by the JSE trading system and done without any prior
understanding or arrangement between the company and the counter party;
(iv) the company only appoints one agent to effect any repurchase (s) on its behalf;
(v)
the price paid per ordinary share may not be greater than 10 per cent above the weighted average of the market value of the
ordinary shares for the five business days immediately preceding the date on which a purchase is made;
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G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
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(vi) the number of shares purchased by subsidiaries of the company shall not exceed 10 per cent in the aggregate of the number
of issued shares in the company at the relevant times;
(vii) the repurchase of shares by the company or its subsidiaries may not be effected during a prohibited period, as defined in the
JSE Listings Requirements;
(viii) after a repurchase, the company will continue to comply with all the JSE Listings Requirements concerning shareholder spread
requirements; and
(ix) an announcement containing full details of such acquisitions of shares will be published as soon as the company and/or its
subsidiaries have acquired shares constituting, on a cumulative basis 3 per cent of the number of shares in issue at the date of
the general meeting at which this special resolution is considered and if approved, passed, and for each 3 per cent in aggregate
of the initial number acquired thereafter.”
Explanatory note on Special Resolution Number 1
The reason for and effect of this special resolution is to allow the company and/or its subsidiaries by way of a general authority to
acquire its own issued shares, thereby reducing the total number of ordinary shares of the company in issue. At the present time,
the directors have no specific intention with regard to the utilisation of this authority which will only be used if the circumstances are
appropriate. Any decision by the directors, after considering the effect of a repurchase of up to 20 per cent of the company’s issued
ordinary shares, to use the general authority to repurchase shares of the company or Group will be with regard to the prevailing
market conditions and other factors and provided that, after such acquisition, the directors are of the opinion that:
(i)
the company and its subsidiaries will be able to pay their debts in the ordinary course of business for a period of 12 months
after the date of this notice;
recognised and measured in accordance with the accounting policies used in the latest audited annual Group financial
statements, the assets of the company and its subsidiaries will exceed the liabilities of the company and its subsidiaries for a
period of 12 months after the date of this notice;
(ii)
(iii) the ordinary capital and reserves of the company and its subsidiaries will be adequate for the purposes of the business of the
company and its subsidiaries for the period of 12 months after the date of this notice; and
(iv) the working capital of the company and its subsidiaries will be adequate for the purposes of the business of the company and
its subsidiaries for the period of 12 months after the date of this notice.
The company will ensure that its sponsor will provide the necessary letter on the adequacy of the working capital in terms of the
JSE Listings Requirements, prior to the commencement of any purchase of the company’s shares on the open market.
The JSE Listings Requirements require, in terms of section 11.26, the following disclosure requirements, which appear in the annual
report of which this notice will be a part:
(cid:115)(cid:0) (cid:36)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82)(cid:83)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:77)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:110)(cid:0)(cid:82)(cid:69)(cid:70)(cid:69)(cid:82)(cid:0)(cid:84)(cid:79)(cid:0)(cid:80)(cid:65)(cid:71)(cid:69)(cid:83)(cid:0)(cid:17)(cid:22)(cid:0)(cid:84)(cid:79)(cid:0)(cid:17)(cid:25)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:65)(cid:78)(cid:78)(cid:85)(cid:65)(cid:76)(cid:0)(cid:82)(cid:69)(cid:80)(cid:79)(cid:82)(cid:84)
(cid:115)(cid:0) (cid:45)(cid:65)(cid:74)(cid:79)(cid:82)(cid:0)(cid:66)(cid:69)(cid:78)(cid:69)(cid:70)(cid:73)(cid:67)(cid:73)(cid:65)(cid:76)(cid:0)(cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:72)(cid:79)(cid:76)(cid:68)(cid:69)(cid:82)(cid:83)(cid:0)(cid:110)(cid:0)(cid:82)(cid:69)(cid:70)(cid:69)(cid:82)(cid:0)(cid:84)(cid:79)(cid:0)(cid:80)(cid:65)(cid:71)(cid:69)(cid:0)(cid:18)(cid:17)(cid:20)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:65)(cid:78)(cid:78)(cid:85)(cid:65)(cid:76)(cid:0)(cid:70)(cid:73)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76)(cid:0)(cid:82)(cid:69)(cid:80)(cid:79)(cid:82)(cid:84)
(cid:115)(cid:0) (cid:36)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82)(cid:83)(cid:7)(cid:0)(cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84)(cid:83)(cid:0)(cid:73)(cid:78)(cid:0)(cid:79)(cid:82)(cid:68)(cid:73)(cid:78)(cid:65)(cid:82)(cid:89)(cid:0)(cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83)(cid:0)(cid:110)(cid:0)(cid:82)(cid:69)(cid:70)(cid:69)(cid:82)(cid:0)(cid:84)(cid:79)(cid:0)(cid:80)(cid:65)(cid:71)(cid:69)(cid:0)(cid:17)(cid:17)(cid:22)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:65)(cid:78)(cid:78)(cid:85)(cid:65)(cid:76)(cid:0)(cid:70)(cid:73)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76)(cid:0)(cid:82)(cid:69)(cid:80)(cid:79)(cid:82)(cid:84)
(cid:115)(cid:0) (cid:51)(cid:72)(cid:65)(cid:82)(cid:69)(cid:0)(cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:67)(cid:79)(cid:77)(cid:80)(cid:65)(cid:78)(cid:89)(cid:0)(cid:110)(cid:0)(cid:82)(cid:69)(cid:70)(cid:69)(cid:82)(cid:0)(cid:84)(cid:79)(cid:0)(cid:80)(cid:65)(cid:71)(cid:69)(cid:0)(cid:17)(cid:17)(cid:18)(cid:0)(cid:79)(cid:70)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)(cid:65)(cid:78)(cid:78)(cid:85)(cid:65)(cid:76)(cid:0)(cid:70)(cid:73)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76)(cid:0)(cid:82)(cid:69)(cid:80)(cid:79)(cid:82)(cid:84)
The directors of the company are not aware of any legal or arbitration proceedings, including proceedings that are pending or
threatened, that may have or have had in the recent past, being at least the previous 12 months, a material effect on the Group’s
financial position, save for the summons received on 21 August 2008, by Gold Fields Operations Limited (formerly known as Western
Areas Limited) (Gold Fields Operations), a subsidiary of the company. The summons was received from Randgold & Exploration
Company Limited (Randgold) and African Strategic Investments (Holdings) Limited. The summons claims that during the period
that Gold Fields Operations was under the control of Mr Brett Kebble, Mr Roger Kebble and others, Gold Fields Operations was
allegedly part of a scam whereby JCI Limited unlawfully disposed of shares owned by Randgold in Randgold Resources Limited
(RRL) and Afrikander Lease Limited, now Uranium One.
Gold Fields Operations’ preliminary assessment was that it had strong defences to these claims and accordingly, Gold Fields
Operations’ attorneys were instructed to vigorously defend the claims. Werksmans Attorneys have been so instructed. Much of the
preparatory work is still being undertaken and pleadings have not yet closed.
The claims have been computed in various ways. The highest claims have been computed on the basis of the highest prices of
RRL and Uranium One between the dates of the alleged thefts and March 2008 (approximately R11 billion). The alternative claims
have been computed on the basis of the actual amounts allegedly received by Gold Fields Operations to fund its operations
(approximately R519 million).
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G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
NOTICE OF ANNUAL GENERAL MEETING continued
It should be noted that claims lie only against Gold Fields Operations, whose only interest is 50 per cent stake in the South Deep
Mine.
The directors jointly and severally accept full responsibility for the accuracy of information pertaining to the special resolution and
certify that to the best of their knowledge and belief there are no facts that have been omitted which would make any statement
false or misleading, and that all reasonable enquiries to ascertain such facts have been made and that the resolution contains all
information required by the JSE Listings Requirements.
Other than the facts and developments reported on in the annual report, there have been no material changes in the affairs or
financial position of the company and its subsidiaries between the date of signature of the audit report and the date of this notice.
A shareholder entitled to attend and vote at the meeting may appoint a proxy or proxies to attend, speak and vote in his/her stead.
A proxy need not be a shareholder of the company. Proxy forms must reach the registered office, or the London secretaries, or the
Johannesburg or London transfer office of the company at least 24 hours before the time of the meeting.
By order of the directors
C Farrel
Corporate Secretary
Johannesburg
10 September 2009
ADMINISTRATION AND CORPORATE INFORMATION
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
225
Corporate Secretary
Cain Farrel
Tel:
Fax:
e-mail: cain.farrel@goldfields.co.za
(+27)(11) 562 9742
(+27)(11) 562 9829
Registered offices
Johannesburg
Gold Fields Limited
150 Helen Road
Sandown
Sandton
2196
Postnet Suite 252
Private Bag X30500
Houghton 2041
Tel:
(+27)(11) 562 9700
Fax: (+27)(11) 562 9829
Secretaries offices
London
St James’s Corporate Services Limited
6 St James’s Place
London SW1A 1NP
United Kingdom
Tel:
Fax:
(+44)(20) 7499 3916
(+44)(20) 7491 1989
American Depository Receipts Transfer Agent
Bank of New York Mellon
BNY Mellon Shareowner Services
PO Box 358516
Pittsburgh, PA15252-8516
US toll-free telephone: (1)(888) 269 2377
Tel:
e-mail: shrrelations@bnymellon.com
(+1) 201 680 6825
Gold Fields Limited
Incorporated in the Republic of South Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN – ZAE 000018123
Investor and Media Enquiries
Willie Jacobsz
Tel:
Mobile:
e-mail: wjacobsz@gfexpl.com
(+508) 358 0188
(+857) 241 7127
Nikki Catrakilis-Wagner
Tel:
Mobile:
e-mail: nikki.catrakilis-wagner@goldfields.co.za
(+27)(11) 562 9706
(+27)(0) 83 309 6720
Transfer Secretaries
South Africa
Computershare Investor Services
(Proprietary) Limited
Ground Floor
70 Marshall Street
Johannesburg 2001
PO Box 61051
Marshalltown 2107
Tel:
Fax:
(+27)(11) 370 5000
(+27)(11) 370 5271
United Kingdom
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
England
Tel: 08716640300 [from UK calls]
(+44)(20) 8639 3399 [from outside UK]
(+44)(20) 8658 3430
Fax:
Website
http://www.goldfields.co.za
Listings
JSE/NYSE/NASDAQ Dubai: GFI
NYX: GFLB
SWX: GOLI
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GLOSSARY OF TERMS
ABET
Adult Basic Education and Training
AS/NZ 4801
Australian occupational health and safety management
standards
Backfill
Material generally sourced from mine residues and utilised
for the filling of mined voids, to ensure long-term stability of
excavations and minimise the effects of seismic activity
BEE
Black Economic Empowerment. BEE seeks to ensure that
black persons within South Africa gain a significant degree
of control in the economy through the possession of equity
stakes and the holding of management positions within an
institution
Blasthole
A drill hole in a mine that is filled with explosives in order to
blast loose a quantity of rock
Bore-hole or drill-hole
Method of sampling rock that has not been exposed by means
of obtaining a core of rock (see diamond drill)
Box-hole
A cross raise, normally from the access cross-cut to the reef
horizon, for the purpose of drawing broken rock and ore from
the reef horizon into a conveyance in the crosscut
Breast mining
A mining method whereby mining advances in the direction
of strike
Bulk mining
Any large-scale, mechanised method of mining involving many
thousands of tons of ore being brought to surface each day
BVQI
Bureau Veritas Qualite International is a leading global and
independent certification body that audits and certifies whether
company systems meet the requirements of ISO standards
Carbon-in-Leach
The recovery process in which gold is leached from gold ore
pulp by cyanide and simultaneously adsorbed onto activated
carbon granules in the same vessel. The loaded carbon is
then separated from the pulp for subsequent gold removal
by elution. The process is typically employed where there is a
naturally occurring gold adsorbent in the ore
Carbon-in-Pulp
The recovery process in which gold is first leached from
gold ore pulp by cyanide and then adsorbed onto activated
carbon granules in separate vessels. The loaded carbon is
then separated from the pulp for subsequent gold removal by
elution
Capital expenditure (or capex)
Specific project or ongoing expenditure for replacement or
additional equipment, materials or infrastructure
Channel
Water course, also in this sense sedimentary material course
Collective Bargaining Agreement
Collective Bargaining Agreement means a written agreement
concerning terms and conditions of employment or any other
matter of mutual interest concluded by a trade union(s) and
the company
Co-morbidity
Medical term for diseases that commonly co-exist to increase
the risk of morbidity
Comminution
The term used to describe the process by which ore is
reduced in size in order to liberate the desired mineral from the
gangue material in preparation for further processing
Concentrate
A metal-rich product resulting from a mineral enrichment
process such as gravity concentration or flotation, in which
most of the desired mineral has been separated from the
waste material in the ore
Conglomerate
Sedimentary rock comprising eroded, rounded pebbles
Cross-cut
A horizontal underground drive developed perpendicular to the
strike direction of the stratigraphy
Cut-off grade
The lowest grade of mineralised rock cut-off grade which
determines as to whether or not it is economic to recover its
gold content by further concentration
Decline
A surface or sub-surface excavation in the form of a tunnel
which is developed from the uppermost point downward
Depletion
The decrease in quantity of ore in a deposit or property
resulting from extraction or mining
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Development
Is any tunnelling operation, which has for its object either
exploration, exploitation or both
Filtration
Process of separating usually valuable solid material from a
liquid
Diamond drill
A rotary type of rock drill that cuts a core of rock that is
recovered in long cylindrical sections
Dilution
Waste or material below the cut-off grade that contaminates
the ore during the course of mining operations and thereby
reduces the average grade mined
Flotation
The process by which the surface chemistry of the desired
mineral particles is chemically modified such that they
preferentially attach themselves to bubbles and float to the
pulp surface in specially designed machines. The gangue or
waste minerals are chemically depressed and do not float,
thus allowing the valuable minerals to be concentrated and
separated from the undesired material
Dip
Angle of inclination of a geological feature/rock from the
horizontal
Footwall
The underlying side of an ore body or stope
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Dyke
Thin, tabular, vertical or near vertical body of igneous rock
formed by the injection of magma into planar zones of
weakness
Elution
The chemical process of desorbing gold from activated carbon
Face
The end of a drift, cross-cut or stope at which work is taking
place
Facies
A rock unit defined by its composition, internal geometry and
formation environment, usually reflecting the conditions of its
origin
Fatality rate
Number of deaths per million man-hours worked
Fault
The surface of a fracture along which movement has occurred
Feasibility study
A comprehensive design and costing study of the selected
option for the development of a mineral project in which
appropriate assessments have been made of realistically
assumed geological, mining, metallurgical, economic,
marketing,
legal, environmental, social, governmental,
engineering, operational and all other modifying factors, which
are considered in sufficient detail to demonstrate at the time of
reporting that extraction is reasonably justified (economically
mineable) and the factors reasonably serve as the basis for a
final decision by a proponent or financial institution to proceed
with, or finance, the development of the project. The overall
confidence of the study should be stated
Gold equivalent
A quantity of metal (such as copper) converted to an amount
of gold in ounces, based on accepted gold and other metal
prices. i.e. The accepted total value of the metal based on its
weight and value thereof divided by the accepted value of one
troy ounce of gold
Grade
The quantity of gold contained within a unit weight of gold-
bearing material generally expressed in grams per metric
tonne (g/t)
Hanging wall
The overlying side of an ore body or slope
Haulage
A horizontal underground excavation which is used to transport
mined ore
Head grade
The grade of the material delivered to the processing facility
(such as heap leach pad, Mill etc.). The Mineral Reserve
declaration is for material as delivered to the processing facility
Hedging
Taking a buy or sell position in futures market. Opposite to a
position held in the cash/spot market to minimise the risk of
financial loss from an adverse price change
Hydrothermal
Process of injection of hot, aqueous, generally mineral-rich
solutions into existing rocks or features
ICVCT
Informed Consented Voluntary Counselling and Testing
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GLOSSARY OF TERMS continued
Indicated Mineral Resource
That part of a Mineral Resource for which tonnage, densities,
shape, physical characteristics, grade and mineral content
can be estimated with a reasonable level of confidence. It
is based on exploration, sampling and testing information
gathered through appropriate techniques from locations such
as outcrops, trenches, pits, workings and drill-holes. The
locations are too widely or inappropriately spaced to confirm
geological and/or grade continuity but are spaced closely
enough for continuity to be assumed
Inferred Mineral Resource
That part of a Mineral Resource for which tonnage, grade
and mineral content can be estimated with a low level
of confidence. It is inferred from geological evidence and
assumed but not verified geological and/or grade continuity.
It is based on information gathered through appropriate
techniques from locations such as outcrops, trenches, pits,
workings and drill-holes which may be limited or of uncertain
quality and reliability
ISO 14000
International standards for organisations to implement sound
environmental management systems
LDIFR
Lost Day Injury Frequency Rate. Number of lost day injuries
expressed in million man hours worked
Lock-up gold
Gold locked as a temporary inventory within a processing
plant, or sections thereof, typically milling circuits
Measured Mineral Resource
That part of a Mineral Resource for which tonnage, densities,
shape, physical characteristics, grade and mineral content
can be estimated with a high level of confidence. It is based
on detailed and reliable exploration, sampling and testing
information gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and
drillholes. The locations are spaced closely enough to confirm
geological and grade continuity
Milling
A general term used to describe the process in which the ore
is crushed and ground and subjected to physical or chemical
treatment to extract the valuable metals to a concentrate or
finished product
Mine Health and Safety Act (MHSA)
The South African Mine Health and Safety Act, No 29 of 1996
Mineral Resource
A ‘Mineral Resource’ is a concentration or occurrence of
material of economic interest in or on the earth’s crust in
such form, quality and quantity that there are reasonable
and realistic prospects for eventual economic extraction.
The location, quantity, grade, continuity and other geological
characteristics of a Mineral Resource are known, or estimated
from specific geological evidence, sampling and knowledge
interpreted from an appropriately constrained and portrayed
geological model. Mineral Resources are subdivided, and
must be so reported, in order of increasing confidence in
respect of geoscientific evidence, into Inferred, Indicated or
Measured categories
Mineral Reserve
A ‘Mineral Reserve’ is the economically mineable material
derived from a Measured or Indicated Mineral Resource or
both. It includes diluting and contaminating materials and
allows for losses that are expected to occur when the material
is mined. Appropriate assessments to a minimum of a Pre-
Feasibility Study for a project and a Life of Mine Plan for an
operation must have been completed, including consideration
of, and modification by, realistically assumed mining,
metallurgical, economic, marketing, legal, environmental,
social and governmental factors (the modifying factors). Such
modifying factors must be disclosed
Mineralised
Rock in which minerals have been introduced to the point of a
potential ore deposit
Minerals Act
The South African Minerals Act, No 50 of 1999
Normal fault
Fault in which the hanging wall moves downward relative to the
footwall, under extensional tectonic conditions
Notional cash expenditure (NCE)
NCE is defined as operating costs plus capital expenditure and
is reported on a per kilogram and per ounce basis.
Nugget effect
A measure of the randomness of the grade distribution within
a mineralised zone
NUM
National Union of Mine Workers
OHSAS
Management system standards, developed in order to facilitate
the integration of quality and occupational health and safety
management systems by organisations
Payshoot
Linear to sub-linear zone within a reef for which gold grades
or accumulations are predominantly above the cut-off grade
Pillar
Rock left behind to help support the excavations in an
underground mine
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Probable Mineral Reserve
The economically mineable material derived from a Measured
and/or Indicated Mineral Resource. It is estimated with a
lower level of confidence than a Proved Mineral Reserve. It is
inclusive of diluting materials and allows for losses that may
occur when the material is mined. Appropriate assessments,
which may include feasibility studies, have been carried out
and including consideration of and modification by, realistically
assumed mining, metallurgical, economic, marketing, legal,
environmental, social and governmental factors. These
assessments demonstrate at the time of reporting that
extraction is reasonably justified
Stope
The working area from which ore is extracted in an underground
mine
Stripping
The process of removing overburden or waste rock to expose
ore
Stripping ratio
The ratio of waste tonnes to ore tonnes mined calculated
as total tonnes mined less ore tonnes mined divided by ore
tonnes mined
Project capital
Capital expenditure which is associated with specific projects
of a non-routine nature
Stratigraphy
The science of rock strata, including arrangement according to
geographical positioning and chronological order of sequence
Proved Mineral Reserve
The economically mineable material derived from a Measured
Mineral Resource. It is estimated with a high level of confidence.
It is inclusive of diluting materials and allows for losses that may
occur when the material is mined. Appropriate assessments,
which may include feasibility studies, have been carried out,
including consideration of and modification by realistically
assumed mining, metallurgical, economic, marketing, legal,
environmental, social and governmental factors. These
assessments demonstrate at the time of reporting that
extraction is reasonably justified
Strike
Direction of line formed by the intersection of strata surfaces
with the horizontal plane, always perpendicular to the dip
direction
Sub-vertical shaft
An opening cut below the surface downwards from an
established surface shaft
Surface sources
Ore sources, usually dumps, tailings dams and stockpiles,
located at the surface
Reef
Gold bearing sedimentary horizon in the Witwatersrand Basin
TEBA
The Employment Bureau of Africa
SADC
Southern African Development Community
SAMREC Code
The South African code for the reporting of exploration results,
Mineral Resources and Mineral Reserves (the SAMREC Code)
2007 Edition
Seismic
Earthquake or earth vibration including those artificially induced
by mining operations
Sequential Grid Mining
Mining method incorporating dip pillars and mined on a grid
system
Shaft
An opening cut downwards from the surface for transporting
personnel, equipment, supplies, ore and waste
Shear
A deformation resulting from stresses that cause contiguous
parts of a body of rock to slide relative to each other in a
direction parallel to their plane of contact
Tertiary shaft
An opening cut below the surface downwards from an
established sub-vertical shaft
The Base Case
The Base Case is established as part of the financial models
Trade union
An association of employees: whose principal purpose is
to regulate relations between employees and the company,
which has been registered; whose officials have been elected
to represent the interests of employees within the workplace;
and which is recognised for collective bargaining by the
company
Total cash costs
Total cash costs include cost of sales – excluding amortisation
and depreciation, rehabilitation costs, general and administration
costs, and exploration costs in accordance with the Gold
Institute Industry Standard
Vamping
Is the final clean-up of track ballast and/or accumulations in
gullies and along transportation routes
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GLOSSARY OF TERMS continued
Abbreviations and units
ABET
ADS
AIDS
ARC
ART
CBO
CIL
CIP
CIS
DCF
ETF
GFHS
GFLC
GRI
HBC
HDSA
HIV
LoM plan Life-of-Mine plan
LTIFR
Adult Basic Education and Training
American Depository Shares
Acquired Immune Deficiency Syndrome
Assessment & Rehabilitation Centres
Antiretroviral therapy
Community based organisation
Carbon-in-leach
Carbon-in-pulp
Carbon-in solution
Discounted Cash Flow
Exchange traded fund
Gold Fields Health Service
Gold Fields La Cima
Global Reporting Initiative
Home Based Care
Historically disadvantaged South African
Human Immunodeficiency Virus
NGO
NUM
NYSE
MCF
OHC
OT
PHC
PPI
SAMREC
Lost Time Injury Frequency Rate, quoted in million
man-hours
Non-governmental organisation
National Union of Mineworkers
New York Stock Exchange
Mine Call Factor
Occupational Health Centre
Occupational Therapy
Primary Health Clinic
Producer Price Index
South African code for Reporting of Mineral
Resources and Mineral Reserves
SEC
STI
TB
TEC
UASA
VCT
cm
cm.g/t
g
g/t
Ha
kg
km
koz
kt
ktpa
ktpm
m2
Moz
oz
t
US$
US$m
US$/oz
R
R/kg
Rm
R/t
United States Securities Exchange Commission
Sexually Transmitted Infection
Tuberculosis
Total Employees Costed
United Association of South Africa (a labour
organisation)
Voluntary Counselling & Testing (for HIV)
centimetre
gold accumulation
gram
grams per metric ton – gold grade
hectare
kilogram
kilometre
thousand ounces
thousand metric tons
thousand metric tons per annum
thousand tons per month
square metre
million ounces
fine troy ounce equalling 31.10348 grams
metric ton
United States dollar
million United States dollars
United States dollar per ounce
South African rand
South African rand per kilogram
million South African rands
South African rand per metric ton
PROXY FORM
Gold Fields Limited (Registration No 1968/004880/06)
Share Code: GFI
Issuer Code: GOGOF
ISIN: ZAE000018123
I/we (Name in block letters)
of (Address in block letters)
being a shareholder(s) of Gold Fields Limited
hereby appoint
or, failing him/her
of
of
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3)(cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59)(cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
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or, failing him/her, the chairman of the meeting as my/our proxy to attend, speak and, on a poll vote on my/our behalf at the
annual general meeting of shareholders of Gold Fields Limited to be held on Wednesday, 4 November 2009 at 09:00, and at any
adjournment thereof, and to vote or abstain from voting as follows on the resolutions to be proposed at such meeting:
For
Against Abstain
Ordinary resolution number 1
Adoption of financial statements
Ordinary resolution number 2
Re-election of Ms CA Carolus as a director
Ordinary resolution number 3
Re-election of Mr R Dañino as a director
Ordinary resolution number 4
Re-election of Mr AR Hill as a director
Ordinary resolution number 5
Re-election of Mr NJ Holland as a director
Ordinary resolution number 6
Re-election of Mr RP Menell as a director
Ordinary resolution number 7
Placement of ordinary shares under the control of the directors
Ordinary resolution number 8
Placement of non-convertible redeemable preference shares under the control of the directors
Ordinary resolution number 9
Issuing equity securities for cash
Ordinary resolution number 10
Amendments to the Gold Fields Limited 2005 Share Plan
Ordinary resolution number 11
Award of rights to non-executive directors under The Gold Fields Limited 2005 Non-executive Share Plan
Ordinary resolution number 12
Increase of non-executive directors’ fees
Special resolution number 1
Acquisition of company’s own shares
A shareholder entitled to attend and vote at the meeting may appoint a proxy or proxies to attend, speak and on a poll, vote in his/
her stead. A proxy need not be a shareholder of the company.
Every person present and entitled to vote at the annual general meeting as a shareholder or as a representative of a body corporate
shall on a show of hands have one vote only, irrespective of the number of shares such person holds or represents, but in the event
of a poll, every share shall have one vote.
Please indicate with an “X” in the appropriate spaces above how you wish your votes to be cast.
If you return this form duly signed without any specific directions, the proxy will vote or abstain at his/her discretion.
Signed at
Name in block letters
Signature
Assisted by me (where applicable)
on
2009
This proxy form is not for use by holders of American Depositary Receipts issued by the Bank of New York Mellon.
G O L D F I E L D S (cid:40) (cid:53) (cid:53) (cid:60)(cid:40) (cid:51)(cid:3) (cid:57) (cid:44) (cid:55) (cid:54) (cid:57) (cid:59) (cid:3)(cid:25) (cid:23) (cid:23) (cid:32)
NOTES TO FORM OF PROXY
1. A form of proxy is only to be completed by those shareholders:
–
–
holding shares in certified form; or
recorded on sub-register electronic form in “own name”.
2.
3.
4.
All other beneficial owners who have dematerialised their shares through a Central Securities Depository Participant (CSDP) or
broker and wish to attend the annual general meeting, must provide the CSDP or broker with their voting instructions in terms
of the relevant custody agreement entered into between them and the CSDP or broker.
A signatory/ies to the Proxy Form may insert the name of a proxy or the name of an alternative proxy in the blank spaces
provided with or without deleting “the chairman of the meeting”, but any such deletion must be initialled by the signatory/ies.
Any insertion or deletion not complying with the aforegoing will be deemed not to have been validly effected. The person at the
meeting whose name appears first on the list of names above, shall be the validly appointed proxy for the shareholder at the
meeting.
A shareholder’s instructions to the proxy must be indicated in the appropriate blocks provided. A shareholder or the proxy is
not obliged to use all the votes exercisable by the shareholder or by the proxy or to cast all those votes in the same way, but
the total of that shareholder’s votes cast and in respect whereof abstention is directed, may not exceed the total of the votes
exercisable by the shareholder or the proxy. Failure to comply with the above or to provide voting instructions or the giving of
contradictory instructions will be deemed to authorise the proxy to vote or abstain from voting at the meeting as such proxy
deems fit in respect of all that shareholder’s votes exercisable at that meeting.
5. Any alteration or correction made to this Proxy Form must be initialled by the signatory/ies.
6.
Documentary evidence establishing the authority of a person signing this Proxy Form in a responsible capacity must be
attached to this Proxy Form unless previously recorded by the company.
7. When there are joint holders of shares, any one holder may sign the Proxy Form.
8. Where applicable, spouses consent must be obtained.
9.
The completion and lodging of this Proxy Form will not preclude the shareholder who grants this proxy from attending the
meeting and speaking and voting in person thereat to the exclusion of any proxy appointed in terms hereof should such
member wish to do so.
10. Completed Proxy Forms should be returned to the registered offices in Johannesburg or one of the transfer offices of the
company at either of the addresses given below at least 24 hours before the time of the meeting.
Transfer offices:
South Africa
Computershare Investor Services (Proprietary) Limited
Ground Floor
70 Marshall Street
Johannesburg, 2001
PO Box 61051
Marshalltown, 2107
Tel:
(+27)(11) 370 5000
Fax: (+27)(11) 370 5271
United Kingdom
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
England
Tel: 08716649300 (from UK calls)
(+44)(20) 8639 3399 (from outside UK)
(+44)(20) 8658 3430
Fax:
www.goldfields.co.za