Business Context and Reporting Period
Company: Gold Fields Limited
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Date: October 5, 2009
Reporting Period: 12-month period ended June 30, 2009 (Fiscal Year 2009)
Business Overview: Gold Fields is a major unhedged gold producer with nine operating mines across South Africa, Ghana, Australia, and Peru. The company reported an annualized attributable production run rate of 3.6 million ounces based on the fourth quarter of F2009.
Key Financial and Operational Metrics
Mineral Resources (Attributable): 271.1 million ounces (including 2PGE, copper equivalent, and TSF gold).
Mineral Reserves (Attributable): 81.1 million ounces (including copper equivalent).
Managed Mineral Resources: 282.4 million ounces.
Managed Mineral Reserves: 85.7 million ounces.
Production Run Rate: 3.6 million ounces per annum (annualized Q4 F2009).
Financials: The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity.
Material Changes Versus Prior Period
- Attributable Resources: Increased to 271.1 million ounces from 250.6 million ounces in the prior year (ended June 30, 2008).
- Attributable Reserves: Decreased slightly to 81.1 million ounces from 82.8 million ounces in the prior year.
- Managed Resources: Increased 8% to 282.4 million ounces from 262.1 million ounces.
- Managed Reserves: Decreased slightly to 85.7 million ounces from 87.6 million ounces.
- Reserve Adjustments: 1.8 million ounces were removed from reserves at Driefontein and Kloof mines (0.7 Moz in F2009 and 1.1 Moz in F2008) due to pillars and remnants.
Guidance, Outlook, and Management Commentary
Strategic Focus: Management prioritizes safety and development to create flexibility and reduce volatility, particularly in South African mines. The goal is to build 24 months of developed Ore Reserve at long-life shafts over the next two years.
Investment: An additional R500 million has been allocated for development in F2010. The company is mechanizing flat-end development, targeting 100% mechanization by the end of the calendar year (currently at 50%).
Operational Outlook:
- South Deep: Ahead of schedule for a short-term target of 300,000 ounces in F2010; on track for a run rate of 750,000–800,000 ounces by end of 2014.
- International Portfolio: Damang (Ghana) has a 9-year reserve life; St Ives (Australia) has a 5-year life with potential to double via the Athena camp; Tarkwa (Ghana) has a 15-year reserve life.
- Uranium: Feasibility studies are underway for uranium resources at Driefontein, Kloof, and South Deep, expected to complete early 2010.
Pricing Assumptions: Resources calculated using gold prices of R285,000/kg (SA), A$1,250/oz (Australia), and US$1,000/oz (West Africa/South America). Reserves calculated using R230,000/kg (SA), A$1,000/oz (Australia), and US$800/oz (West Africa/South America).
Investor Verification Checklist
- Verify the specific financial performance (revenue, EBITDA, cash flow) for F2009, as this filing focuses solely on resource and reserve updates.
- Confirm the timeline and capital requirements for the R500 million development allocation in F2010.
- Monitor the progress of the uranium feasibility study at Driefontein, Kloof, and South Deep scheduled for early 2010.
- Track the mechanization progress of flat-end development in South Africa to ensure the 100% target is met.
- Review the detailed Mineral Resource and Mineral Reserve Statement available on the company website for full technical data.