Business Context and Reporting Period
Company: Gold Fields Limited
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Reporting Period: September 2009 (Specifically dated September 4, 2009)
Business Overview: One of the world's largest unhedged gold producers with operations in South Africa, Peru, Ghana, and Australia. The company reports steady-state production of approximately 3.6 million ounces per annum from nine operating mines.
Key Financial Metrics and Transaction Details
This filing details a specific asset disposal rather than full-period financial statements. Key metrics include:
- Transaction Proceeds: CAD 323 million (approximately US$ 293 million).
- Asset Disposed: 27,824,654 shares of Eldorado Gold Corporation.
- Price per Share: CAD 11.61.
- Use of Proceeds: Debt repayments.
- Reserves and Resources: Total attributable ore reserves of 83 million ounces; mineral resources of 251 million ounces.
Note: The filing text does not provide clear values for total revenue, net profit, operating cash flow, margins, or total debt levels for the period.
Material Changes and Strategic Actions
The primary material change reported is the complete disposal of Gold Fields' holding in Eldorado Gold Corporation. This transaction reduces the company's equity exposure to Eldorado but preserves a specific contractual right:
- Top-Up Right: Gold Fields retains a "top-up right" negotiated during the previous sale of its 19.9% stake in Sino Gold Mining Limited to Eldorado.
- Condition: If Eldorado acquires an additional 5% or more of Sino Gold shares within 18 months (ending early December 2010) at a price higher than the original consideration (48 Eldorado shares for every 100 Sino Gold shares), Gold Fields will receive additional compensation.
Outlook, Risks, and Management Commentary
Management Commentary: Management indicated the proceeds from the Eldorado disposal will be utilized specifically for debt repayments, suggesting a focus on balance sheet deleveraging.
Risks and Contingencies:
- Exchange Rate Risk: The transaction value was converted using a USD/CAD rate of 1.1; fluctuations could impact the realized USD value.
- Contingent Value: Future value from the Sino Gold top-up right is contingent on Eldorado's future acquisition activity and pricing within a specific 18-month window.
Key Facts for Investor Verification
- Verify the exact amount of debt reduction achieved using the CAD 323 million proceeds.
- Confirm the current status of the "top-up right" regarding Sino Gold Mining Limited and any potential future payouts.
- Review the company's full quarterly or annual reports (Form 20-F) for comprehensive revenue, profit, and cash flow data not included in this 6-K.
- Monitor the exchange rate impact on the realized USD proceeds versus the reported approximate figure.