Business Context and Reporting Period
This Form 6-K filing by Gold Fields Limited, dated March 31, 2016, announces the publication of the Integrated Annual Report for the fiscal year ended December 31, 2015. Gold Fields is an unhedged, globally diversified gold producer with operations in South Africa, West Africa (Ghana), Australia, and South America (Peru). The company holds primary listings on the JSE and secondary listings on the NYSE and SWX.
Key Financial and Operational Metrics
The filing focuses on the release of audited financial statements and operational reserves rather than specific revenue or profit figures for the period.
- Gold Production: Approximately 2.0 million ounces of attributable annual gold production.
- Gold Reserves: 46 million ounces of attributable Mineral Reserves (net of production depletion).
- Gold Resources: 102 million ounces of attributable Mineral Resources (90 million ounces exclusive of projects).
- Copper Reserves: 532 million pounds of attributable Mineral Reserves.
- Copper Resources: 5,912 million pounds of attributable Mineral Resources (910 million pounds exclusive of growth projects).
- Debt Reclassification: A reclassification of US$42 million of debt under a revolving senior credit facility from non-current to current liabilities was noted.
- Financial Metrics: The filing text does not provide specific values for revenue, net profit, operating cash flow, or margins for the year ended December 31, 2015.
Material Changes and Amendments
The audited financial statements in the Annual Financial Report contain modifications from the preliminary condensed consolidated financial statements published on February 18, 2016. The primary change is the reclassification of US$42 million of debt from non-current to current liabilities. An abridged report detailing this amendment was to be published on SENS following this announcement.
Outlook, Risks, and Corporate Actions
Valuation Assumptions: Mineral Reserves are based on SAMREC Code compliant pricing of US$1,200/oz for gold and US$2.7/lb for copper for the short term (2016-2017), and US$1,300/oz for gold and US$3.0/lb for copper for the long term (2018 onwards).
Corporate Actions: The Annual General Meeting (AGM) is scheduled for May 18, 2016. The record date for voting eligibility is May 13, 2016, with the last trading day to be registered on May 6, 2016.
Audit: KPMG Inc. has audited the financial statements and issued an unmodified audit report.
Investor Verification Checklist
- Review the full Integrated Annual Report and Annual Financial Report on www.goldfields.com for detailed revenue, profit, and cash flow figures not included in this summary.
- Verify the impact of the US$42 million debt reclassification on current liquidity ratios and covenant compliance.
- Confirm the specific operational performance metrics (production costs, all-in sustaining costs) for each of the eight operating mines.
- Check the Mineral Resource and Mineral Reserve Supplement for detailed reconciliations and Competent Person reports.