GFI

Business Context and Reporting Period

Company: Gold Fields Limited
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Reporting Period: May 2010 (Specifically May 26, 2010)
Context: This filing announces a strategic corporate development rather than routine financial results. Gold Fields is pioneering carbon trading in the gold mining industry by selling Certified Emissions Reductions (CERs) derived from methane capture at its Beatrix Gold Mine in South Africa.

Key Financial Metrics and Transaction Details

Transaction Value: Approximately R200 million (based on current CER values and exchange rates at the time of filing).
Contract Volume: 1,700,000 Certified Emissions Reductions (CERs).
Contract Duration: Forward contracts running until 2016.
Counterparty: Mercuria Energy Trading SA.
Broker: TFS Green (Tradition Group).
Project Costs:

• Phase 1 (Methane extraction and flaring): Approximately R42 million.
• Phase 2 (Power generation plant): Costs not specified; potential output of 5MW.

Company Production Profile: Attributable production of 3.6 million ounces per annum (based on Q2 F2010 run rate) from nine operating mines. Total attributable Mineral Reserves are 81 million ounces.

Material Changes and Strategic Developments

New Revenue Stream: The company is establishing a new revenue source through carbon credit sales, a first for a gold mining company.
Operational Safety: The methane capture project eliminates the hazard of underground mine methane at Beatrix, improving the working environment.
Energy Strategy: The project supports a broader strategy to reduce dependence on coal-fired electricity and improve energy efficiency.
Recognition: The transaction was recognized by Energy Risk magazine as the "Deal of the Year" for 2010.

Guidance, Outlook, and Management Commentary

Management Outlook: CEO Nick Holland stated the project demonstrates Gold Fields' commitment to being a global leader in sustainable gold mining. The company is investigating additional carbon projects to bolster sustainable practices.
Project Timeline:

• Phase 1 completion: Before the end of 2010.
• Phase 2 construction (power generation): Scheduled to start in 2011.

Regulatory Status: The transaction is subject to final regulatory approvals. The project has received Designated National Authority verification from South Africa's Department of Mineral Resources.
Risks and Contingencies: The filing notes the transaction is contingent on final regulatory approvals. No specific financial risks regarding the carbon market volatility were detailed in this text.

Key Facts for Investor Verification

• Verify the final regulatory approval status of the CER transaction with Mercuria Energy Trading SA.
• Confirm the actual revenue recognition timing for the R200 million contract value versus the 2016 contract end date.
• Monitor the completion of Phase 1 (methane extraction) by the end of 2010 and the associated R42 million capital expenditure.
• Track the progress of Phase 2 regarding the 5MW power generation plant scheduled to start construction in 2011.
• Assess the impact of methane capture on overall mine safety metrics and operational costs at the Beatrix mine.