Business Context and Reporting Period
This Form 6-K filing by Gold Fields Limited, dated June 24, 2020, discloses the award of Conditional Performance Shares to directors and public officers. The awards were granted on June 19, 2020, with an effective date of February 14, 2020, under the Gold Fields Limited 2012 Share Plan.
Key Financial Metrics
The filing does not provide consolidated revenue, profit, cash flow, margins, debt, or liquidity metrics. The only financial data presented relates to the valuation of the share awards:
- Valuation Basis: Awards were valued using a share price of R104.7568 (3-day VWAP of February 26-28, 2020).
- Total Award Value: The aggregate value of the awards listed in the filing totals approximately R95,127,221.
- Settlement Range: The number of shares settling on the vesting date (three years from the effective date) may range from 0% to 200% of the initial conditional award.
Material Changes
The filing does not report material changes to the company's financial position or operations compared to prior periods. It solely reports the execution of a specific equity compensation event.
Guidance, Outlook, and Risks
Performance Conditions: Vesting is contingent upon achieving pre-determined targets over a three-year period, specifically:
- Relative TSR: Performance against a basket of ten major gold mining companies.
- Absolute TSR: Share price performance from the start to the end of the period.
- Free Cash Flow Margin (FCFM): Achievement of a specific FCFM target.
Risks: The primary risk to the recipients is that the number of shares settled could be 0% if performance conditions are not met. The filing notes that necessary clearance was obtained in accordance with JSE Listings Requirements.
Investor Verification Checklist
- Verify the specific Free Cash Flow Margin (FCFM) targets set for the performance period, as these are not detailed in this filing.
- Confirm the composition of the peer group used for the Relative TSR calculation.
- Review the company's subsequent quarterly reports to assess progress toward the TSR and FCFM targets.
- Monitor the share price volatility, as the final settlement value is highly sensitive to the 200% upside cap or 0% downside floor.