Statement Of Income Alternative
Statement Of Income Alternative (USD $) | |||
In Millions, except Share data | 12 Months Ended
Jun. 30, 2009 | 12 Months Ended
Jun. 30, 2008 | 12 Months Ended
Jun. 30, 2007 |
REVENUES | |||
Product sales | 3228.3 | 3206.2 | 2735.2 |
COSTS AND EXPENSES | |||
Production costs (exclusive of depreciation and amortization) | 1998.6 | 1996.1 | 1707.7 |
Depreciation and amortization | 433.5 | 400.5 | 388.2 |
Corporate expenditure | 35.5 | 41 | 38.4 |
Employee termination costs | 21 | 16.2 | 4.9 |
Exploration expenditure | 58 | 39.8 | 47.4 |
Impairment of assets | 0 | 11.4 | 0 |
-Profit on disposal of property, plant and equipment | -0.5 | -4.6 | -7.4 |
Shaft closure costs | -0.2 | 3.3 | 0 |
Increase/(decrease) in provision for post-retirement health care costs | 3.4 | -0.7 | 1.3 |
Accretion expense on provision for environmental rehabilitation | 13.9 | 12 | 6.4 |
Share-based compensation | 33.7 | 20.7 | 12.5 |
Costs and Expenses, Total | 2596.9 | 2535.7 | 2199.4 |
OTHER (EXPENSES)/INCOME | |||
Interest and dividends | 24.9 | 31.2 | 26.8 |
Finance expense | -73.9 | -100.4 | -95.2 |
Unrealized gain on financial instruments | 0 | 0 | 15.4 |
Realized (loss)/gain on financial instruments | -1.3 | 19.8 | -10.7 |
Gain/(loss) on foreign exchange | 10.2 | 1.7 | -15.1 |
(Loss)/profit on disposal of listed investments | -16.1 | 3.7 | 26.8 |
Impairment of listed investments | (16) | 0 | 0 |
(Loss)/profit on disposal of subsidiaries | -0.3 | 208.4 | 0 |
Other (expenses)/income | -7.7 | 5.9 | -2.2 |
Nonoperating Income (Expense), Total | -80.2 | 170.3 | -54.2 |
INCOME BEFORE TAX, IMPAIRMENT OF INVESTMENT IN EQUITY INVESTEE, SHARE OF EQUITY INVESTEES' (LOSSES)/INCOME AND MINORITY INTERESTS | 551.2 | 840.8 | 481.6 |
Income and mining tax expense | -264.6 | -271.2 | -209.3 |
INCOME BEFORE IMPAIRMENT OF INVESTMENT IN EQUITY INVESTEE, SHARE OF EQUITY INVESTEES' (LOSSES)/INCOME AND MINORITY INTERESTS | 286.6 | 569.6 | 272.3 |
Impairment of investment in equity investee | -87.4 | -61.3 | 0 |
Share of equity investees' (losses)/income | -3.5 | (16) | 0.3 |
Minority interests | -34.8 | -39.8 | -26.5 |
NET INCOME | 160.9 | 452.5 | 246.1 |
BASIC EARNINGS PER SHARE ($) | 0.24 | 0.69 | 0.44 |
DILUTED EARNINGS PER SHARE ($) | 0.24 | 0.69 | 0.44 |
WEIGHTED AVERAGE NUMBER OF SHARES USED IN THE | |||
-COMPUTATION OF BASIC EARNINGS PER SHARE | 670,328,262 | 652,538,212 | 558,259,686 |
-COMPUTATION OF DILUTED EARNINGS PER SHARE | 677,790,732 | 656,252,205 | 562,207,148 |
DIVIDEND PER SHARE ($) | 0.17 | 0.22 | 0.28 |
Statement Of Financial Position
Statement Of Financial Position Classified (USD $) | ||
In Millions | 12 Months Ended
Jun. 30, 2009 | 12 Months Ended
Jun. 30, 2008 |
CURRENT ASSETS | ||
Cash and cash equivalents | 357.5 | 253.7 |
Financial instruments | 0 | 6.9 |
Receivables | 383.5 | 280.1 |
Inventories | 196 | 152.8 |
Materials contained on heap leach pads | 81.3 | 74.5 |
Total current assets | 1018.3 | 768 |
Property, plant and equipment, net | 5756.9 | 5423.7 |
Goodwill | 1084.7 | 1092.8 |
Non-current investments | 475.2 | 737.4 |
TOTAL ASSETS | 8335.1 | 8021.9 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Accounts payable and provisions | 533.5 | 610.3 |
Financial instruments | 1.7 | 0 |
Interest payable | 14.4 | 29.2 |
Income and mining taxes payable | 98.2 | 123.1 |
Bank overdraft | 9.7 | 2.7 |
Short-term loans and current portion of long-term loans | 317.8 | 772.9 |
Total current liabilities | 975.3 | 1538.2 |
Long-term loans | 785.9 | 564.2 |
Deferred income and mining taxes | 817.7 | 719.9 |
Provision for environmental rehabilitation | 236.9 | 216.2 |
Other non-current liabilities | 3.9 | 0 |
Provision for post-retirement health care costs | 11.4 | 7.9 |
Total liabilities | 2831.1 | 3046.4 |
COMMITMENTS AND CONTINGENCIES-see notes 20 and 21 | - | - |
Minority interests | 279.5 | 151.4 |
SHAREHOLDERS' EQUITY | ||
Share capital-1,000,000,000 (2008: 1,000,000,000) authorized ordinary shares of 50 South African cents each. Shares issued 704,749,849 (2008: 653,200,682) | 57.7 | 54.9 |
Additional paid-in capital | 4944.2 | 4490.4 |
Retained earnings | 561.5 | 521.8 |
Accumulated other comprehensive loss | -338.9 | (243) |
Total shareholders' equity | 5224.5 | 4824.1 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 8335.1 | 8021.9 |
1_Statement Of Financial Positi
Statement Of Financial Position Classified (Parenthetical) (USD $) | ||
Jun. 30, 2009
| Jun. 30, 2008
| |
Share capital, authorized ordinary shares | 1,000,000,000 | 1,000,000,000 |
Share capital, Shares issued | 704,749,849 | 653,200,682 |
Statement Of Shareholders Equit
Statement Of Shareholders Equity And Other Comprehensive Income (USD $) | ||||||||
In Millions, except Share data | Additional paid-in capital
| Retained earnings
| Accumulated other comprehensive (loss)/income
| Share of equity investee's other comprehensive income
| Mark-to-market of listed investments
| Foreign exchange translation
| Total
| |
BEGINNING BALANCE at Jun. 30, 2006 | 43.9 | 1827.6 | 123.9 | ($71) | $0 | 70.6 | -141.6 | 1924.4 |
BEGINNING BALANCE at Jun. 30, 2006 | 494,824,723 | |||||||
Net income | 246.1 | 246.1 | ||||||
Dividends declared | -158.2 | -158.2 | ||||||
Share-based compensation | 12.5 | 12.5 | ||||||
Shares issued in connection with capital raising | 90,850,000 | |||||||
Shares issued in connection with capital raising | 6.3 | 1421.1 | 1427.4 | |||||
Shares issued in connection with the acquisition of subsidiaries | 65,098,754 | |||||||
Shares issued in connection with the acquisition of subsidiaries | 4.5 | 1213.3 | 1217.8 | |||||
Transaction costs relating to issue of shares | -25.4 | -25.4 | ||||||
Exercise of employee share options | 1,384,589 | |||||||
Exercise of employee share options | 0.1 | 10.7 | 10.8 | |||||
Mark-to-market of listed investments | 65.8 | 65.8 | 65.8 | |||||
Realized loss/(gain) on disposal of listed investments | -23.5 | -23.5 | -23.5 | |||||
Foreign exchange translation | 93.5 | 93.5 | 93.5 | |||||
ENDING BALANCE at Jun. 30, 2007 | 652,158,066 | |||||||
ENDING BALANCE at Jun. 30, 2007 | 54.8 | 4459.8 | 211.8 | 64.8 | 0 | 112.9 | -48.1 | 4791.2 |
Net income | 452.5 | 452.5 | ||||||
Dividends declared | -142.5 | -142.5 | ||||||
Share-based compensation | 20.7 | 20.7 | ||||||
Exercise of employee share options | 1,042,616 | |||||||
Exercise of employee share options | 0.1 | 9.9 | 10 | |||||
Share of equity investee's other comprehensive income movements | 9.6 | 9.6 | 9.6 | |||||
Mark-to-market of listed investments | 43.1 | 43.1 | 43.1 | |||||
Realized loss/(gain) on disposal of listed investments | 0.9 | 0.9 | 0.9 | |||||
Foreign exchange translation | -361.4 | -361.4 | -361.4 | |||||
ENDING BALANCE at Jun. 30, 2008 | 653,200,682 | |||||||
ENDING BALANCE at Jun. 30, 2008 | 54.9 | 4490.4 | 521.8 | (243) | 9.6 | 156.9 | -409.5 | 4824.1 |
Net income | 160.9 | 160.9 | ||||||
Dividends declared | -121.2 | -121.2 | ||||||
Share-based compensation | 33.7 | 33.7 | ||||||
Shares issued on conversion of debt instrument to equity: Mvela | 50,000,000 | |||||||
Shares issued on conversion of debt instrument to equity: Mvela | 2.7 | 412.2 | 414.9 | |||||
Exercise of employee share options | 1,549,167 | |||||||
Exercise of employee share options | 0.1 | 7.9 | 7.9 | |||||
Share of equity investee's other comprehensive income movements | -0.3 | -0.3 | -0.3 | |||||
Loss arising on dilution of shareholding in equity investee | -24.5 | -24.5 | -24.5 | |||||
Mark-to-market of listed investments | -122.4 | -122.4 | -122.4 | |||||
Impairment of listed investments | 16 | 16 | 16 | |||||
Realized loss/(gain) on disposal of listed investments | 16.1 | 16.1 | 16.1 | |||||
Foreign exchange translation | 19.2 | 19.2 | 19.2 | |||||
ENDING BALANCE at Jun. 30, 2009 | 704,749,849 | |||||||
ENDING BALANCE at Jun. 30, 2009 | 57.7 | 4944.2 | 561.5 | -338.9 | -15.2 | 66.6 | -390.3 | 5224.5 |
Statement Of Other Comprehensiv
Statement Of Other Comprehensive Income (USD $) | |||
In Millions | 12 Months Ended
Jun. 30, 2009 | 12 Months Ended
Jun. 30, 2008 | 12 Months Ended
Jun. 30, 2007 |
Net income | 160.9 | 452.5 | 246.1 |
Other comprehensive (loss)/income | |||
Share of equity investee's other comprehensive income movements | -0.3 | 9.6 | 0 |
Loss arising on dilution of shareholding in equity investee | -24.5 | 0 | 0 |
Mark-to-market adjustment of listed investments | -122.4 | 43.1 | 65.8 |
Realized loss/(gain) on disposal of listed investments | 16.1 | 0.9 | -23.5 |
Impairment of listed investments | 16 | 0 | 0 |
Foreign currency translation adjustment | 19.2 | -361.4 | 93.5 |
Other comprehensive (loss)/income | -95.9 | -307.8 | 135.8 |
Comprehensive income | $65 | 144.7 | 381.9 |
Statement Of Cash Flows Indirec
Statement Of Cash Flows Indirect (USD $) | |||
In Millions | 12 Months Ended
Jun. 30, 2009 | 12 Months Ended
Jun. 30, 2008 | 12 Months Ended
Jun. 30, 2007 |
CASH FLOWS FROM OPERATIONS | |||
Net income | 160.9 | 452.5 | 246.1 |
Reconciled to net cash provided by operations: | |||
-Minority interests | 34.8 | 39.8 | 26.5 |
-Share of equity investees' losses/(income) | 3.5 | 16 | -0.3 |
-Impairment of investment in equity investee | 87.4 | 61.3 | 0 |
-Income and mining tax expense | 264.6 | 271.2 | 209.3 |
-Impairment of assets | 0 | 11.4 | 0 |
-Loss/(profit) on disposal of listed investments | 16.1 | -3.7 | -26.8 |
-Impairment of listed investments | 16 | 0 | 0 |
-Loss/(profit) on disposal of subsidiaries | 0.3 | -208.4 | 0 |
-Shaft closure costs | -0.2 | 3.3 | 0 |
-Depreciation and amortization | 433.5 | 400.5 | 388.2 |
-Profit on disposal of property, plant and equipment | -0.5 | -4.6 | -7.4 |
-Share-based compensation | 33.7 | 20.7 | 12.5 |
-Unrealized gain on financial instruments | 0 | 0 | -15.4 |
-Accretion expense on provision for environmental rehabilitation | 13.9 | 12 | 6.4 |
-Increase/(decrease) in provision for post-retirement health care costs | 3.4 | -0.7 | 1.3 |
-Payment against post-retirement health care provision | -0.2 | -0.4 | -0.3 |
-Settlement of Western Areas derivative structure | 0 | 0 | -534.6 |
-Finance expense capitalized | -63.6 | -42.1 | -16.7 |
-Other | -50.5 | -34.3 | 13.9 |
Changes in operating assets and liabilities: | |||
-Receivables | -104.9 | (24) | 176.8 |
-Inventories and heap leach pads | -60.3 | (34) | -31.1 |
-Accounts payable and provisions | 44.9 | 106 | -143.9 |
-Income and mining taxes paid | -197.9 | -143.5 | -99.3 |
NET CASH PROVIDED BY OPERATIONS | 634.9 | 899 | 205.2 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Additions to property, plant and equipment | -760.3 | -1154.4 | (797) |
Proceeds on disposal of property, plant and equipment | 3.6 | 5.8 | 8.8 |
Purchase of listed investments | -12.8 | -134.5 | -68.1 |
Proceeds on sale of listed investments | 54.3 | 13.7 | 45.3 |
Proceeds on disposal of subsidiary | 5 | 310.9 | 0 |
Acquisition of subsidiaries, net of cash acquired | 0 | 0 | -1240.9 |
Investment in environmental trust fund | -10.4 | -11.6 | -14.6 |
NET CASH UTILIZED IN INVESTING ACTIVITIES | -720.6 | -970.1 | -2066.5 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Long and short-term loans raised | 1312.3 | 603.4 | 2637.5 |
Long and short-term loans repaid | -993.5 | -586.5 | -1950.5 |
Utilization/(repayment) of bank overdraft | 7 | -0.6 | 3.3 |
Decrease in minority funding | 0 | 0 | -11.5 |
Dividends paid to Company shareholders | -121.2 | -142.5 | -158.2 |
Dividends paid to minority shareholders | 0 | 0 | -1.5 |
Proceeds from rights issue-Cerro Corona | 0 | 96 | 0 |
Ordinary shares issued | 10.7 | 10 | 1412.8 |
NET CASH PROVIDED BY/(UTILIZED IN) FINANCING ACTIVITIES | 215.3 | -20.2 | 1931.9 |
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS | -25.8 | 18.6 | 38.1 |
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | 103.8 | -72.7 | 108.7 |
CASH AND CASH EQUIVALENTS-JULY 1, | 253.7 | 326.4 | 217.7 |
CASH AND CASH EQUIVALENTS-JUNE 30, | 357.5 | 253.7 | 326.4 |
1GENERAL
1GENERAL | |
12 Months Ended
Jun. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
1GENERAL | 1 GENERAL Gold Fields Limited (formerly Driefontein Consolidated Limited (Driefontein), the Company or the Group) was originally incorporated in South Africa and listed on the JSE Securities Exchange S.A. (JSE) during 1968 as East Driefontein Gold Mining Company Limited. Following a merger with West Driefontein Gold Mining Company Limited, it was renamed Driefontein on June15, 1981. On May10, 1999, Driefontein completed a business combination, with another South African company listed on the JSE, Gold Fields Limited (Old Gold Fields). Old Gold Fields evolved through a series of transactions in 1998, whereby it acquired substantially all of the gold mining assets and interests previously held by Gold Fields of South Africa Limited, Gencor Limited, New Wits Limited and certain other shareholders in the companies owning the assets and interests. These assets and interests included publicly traded gold mining companies, mineral rights and service agreements. Driefontein, the surviving entity, was renamed Gold Fields Limited, and Old Gold Fields was renamed GFL Mining Services Limited, effective from that date. The Group is engaged in gold mining and related activities, including exploration, extraction, processing and smelting. Gold bullion, the Groups principal product, is currently produced in South Africa, Ghana and Australia and sold in South Africa and internationally. The Group also produces copper/gold concentrate in Peru, which is sold internationally. |
2SIGNIFICANT ACCOUNTING POLICIE
2SIGNIFICANT ACCOUNTING POLICIES | |
12 Months Ended
Jun. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
2SIGNIFICANT ACCOUNTING POLICIES | 2 SIGNIFICANT ACCOUNTING POLICIES (a) USE OF ESTIMATES: The preparation of the consolidated financial statements in conformity with United States generally accepted accounting principles (US GAAP) requires the Groups management to make estimates and assumptions about current and future events that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Future events and their effects cannot be determined with absolute certainty. Therefore, the determination of estimates requires the exercise of judgment based on various assumptions and other factors such as historical experience, current and expected economic conditions, and in some cases actuarial techniques. Actual results ultimately may differ from those estimates. The more significant areas requiring the use of management estimates and assumptions relate to mineral reserves that are the basis of future cash flow estimates and unit-of-production depreciation, depletion and amortization calculations; environmental, reclamation and closure obligations; estimates of recoverable gold and other materials in heap leach pads; asset impairments (including impairments of goodwill, long-lived assets, and investments); write-downs of inventory to net realizable value; post employment, post retirement and other employee benefit liabilities (including valuation of share-based compensation); valuation allowances for deferred tax assets; reserves for contingencies and litigation; and the fair value and accounting treatment of financial instruments. The following are accounting policies used by the Group which have been consistently applied for all periods presented: (b) CONSOLIDATION: The Groups financial statements include the financial statements of the Group, and its subsidiaries, and its investments in associates. A company in which the Group has, directly or indirectly, through subsidiary undertakings, a controlling interest is classified as a subsidiary undertaking. In addition, the Company reviews its relationships with other entities to assess if the Company is the primary beneficiary of a variable interest entity. If the determination is made that the Company is the primary beneficiary, then that entity is consolidated from the date that the Company was deemed to have become the primary beneficiary. The results of subsidiaries acquired or disposed of are included in the Group statements from the effective dates of acquisition or excluded from such statements as from the effective dates of disposal. Investments in companies which the Company does not control, but where it has the ability to exercise significant influence over their operating and financial policies, are accounted for by the equity method. Inter-company transactions and balances are eliminated on consolidation. Gains or losses that arise from a change in the Groups interest in subsidiaries or equity method investees are recognized in equity. Any excess between the purchase price and the fair value of the attributable net assets o |
3ACQUISITION AND DISPOSAL OF BU
3ACQUISITION AND DISPOSAL OF BUSINESSES | |
12 Months Ended
Jun. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
3ACQUISITION AND DISPOSAL OF BUSINESSES | 3 ACQUISITION AND DISPOSAL OF BUSINESSES (a) Disposal of IRCA (Pty) Limited On March28, 2009, Gold Fields disposed of its assets in IRCA (Pty) Limited (IRCA), for a total cash consideration of $5.0 million, realizing a loss of $0.3 million, which has been included in loss on sale of subsidiaries in the consolidated statement of operations in fiscal 2009. (b) Disposal of Choco 10 On November30, 2007, Gold Fields disposed of its assets in Venezuela to Rusoro Mining Limited (Rusoro), for a total consideration of $413.0 million comprising $180.0 million in cash and 140million newly-issued Rusoro shares with a value of $233.0 million, which at the time of sale represented approximately 37% of the outstanding shares of Rusoro. The Group realized a profit of $17.3 million on the sale of the Venezuelan assets, which has been included in profit on sale of subsidiaries in the consolidated statement of operations in fiscal 2008. Due to the retention of the ongoing interest in Rusoro which is sufficient to enable the Group to exert significant influence, the Group has not classified the results of operations and cash flows of Choco 10 as discontinued. (c) Sale of Essakane joint venture On October11, 2007, Gold Fields reached an agreement to sell its 60% stake in the Essakane project to Orezone Resources Inc. (Orezone). The transaction closed on November26, 2007. Orezone paid Gold Fields $152.0 million in cash and issued 41,666,667 common shares, having an aggregate subscription price of $48.0 million, to Gold Fields wholly-owned subsidiary Gold Fields Essakane (BVI) Limited. Following the disposal, Gold Fields owned 41,666,667 common shares of Orezone, representing 12.2% of Orezones issued and outstanding common shares. The Group realized a profit of $191.1 million on the sale of the Essakane joint venture, which has been included in profit on sale of subsidiaries in the consolidated statement of operations in fiscal 2008. (d) Acquisition of South Deep On September11, 2006, the Company announced that it had reached an agreement with Barrick Gold Corporation Limited (Barrick) to acquire the entire issued share capital of Barrick Gold South Africa (Proprietary) Limited (BGSA), which held a 50% interest in the Barrick GoldWestern Areas Joint Venture, an unincorporated entity in which Barrick and Western Areas Limited (WAL) each held an interest of 50%. The Barrick GoldWestern Areas Joint Venture owned the developing South Deep gold mine (South Deep) adjacent to the Groups Kloof gold mine, located in the Witwatersrand basin near Johannesburg. As a result of Gold Fields acquiring 100% of the issued share capital of BGSA, South Deep was fully consolidated as from December1, 2006. On December1, 2006, the Group already owned 40.9% in WAL shares, which increased to 73% on December8, 2006 (see below). The interest in WAL that the Group did not already own, was accounted for as a minority interest. On October30, 2006, the Company commenced an offer to acquire the entire issued share capital of WAL it did not already own by offering 35 Gold Fields ordinary shares for every 100 WAL shares (the Offer). WALs principal asset was its |
4IMPAIRMENT OF ASSETS
4IMPAIRMENT OF ASSETS | |
12 Months Ended
Jun. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
4IMPAIRMENT OF ASSETS | 4 IMPAIRMENT OF ASSETS 2009 $m 2008 $m 2007 $m St Ives 2.6 Agnew 2.8 Biox 6.0 11.4 St Ives$2.6 million The impairment relates to the closure of the St Ives Junction mine and the original Leviathan pit. Agnew$2.8 million The impairment relates to the rehabilitation assets relating to an old slimes dam at Agnew that is no longer in use. Biox$6.0 million During fiscal 2008, the Group also impaired its patented technology, known as the Biox process, which is used for the pretreatment of refractory ores and concentrates prior to gold recovery through conventional cyanide leaching techniques. On October2, 2008 the Group entered into an agreement to sell its Biox technology process. The agreement was subsequently cancelled. |
5FINANCE EXPENSE
5FINANCE EXPENSE | |
12 Months Ended
Jun. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
5FINANCE EXPENSE | 5 FINANCE EXPENSE 2009 $m 2008 $m 2007 $m Interest expenseMvelaphanda loan (34.9 ) (61.0 ) (61.6 ) Interest expensepreference share dividend (9.8 ) (2.7 ) Interest expenseother (92.8 ) (78.8 ) (44.4 ) Realized loss on foreign debt, net of cash (5.9 ) Total finance expense (137.5 ) (142.5 ) (111.9 ) Capitalized interest 63.6 42.1 16.7 (73.9 ) (100.4 ) (95.2 ) |
6INCOME AND MINING TAX EXPENSE
6INCOME AND MINING TAX EXPENSE | |
12 Months Ended
Jun. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
6INCOME AND MINING TAX EXPENSE | 6 INCOME AND MINING TAX EXPENSE 2009 $m 2008 $m 2007 $m Current income taxes South Africa (101.6 ) (120.8 ) (59.2 ) Ghana (34.2 ) (55.2 ) (41.6 ) Australia (21.0 ) (12.7 ) (20.3 ) Peru (16.1 ) (5.6 ) Venezuela (0.8 ) (1.7 ) Current income and mining taxes (172.9 ) (195.1 ) (122.8 ) Deferred income taxes South Africa (37.5 ) (61.5 ) (69.3 ) Ghana (24.7 ) (8.7 ) (11.6 ) Australia (12.8 ) (2.8 ) (5.3 ) Peru (16.7 ) (3.0 ) Venezuela (0.1 ) (0.3 ) Deferred income and mining taxes (91.7 ) (76.1 ) (86.5 ) Total income and mining taxes (264.6 ) (271.2 ) (209.3 ) The Companys pre-tax income before impairment of equity investee, share of equity investees share of profits/(losses) and minority interests comprise: 2009 $m 2008 $m 2007 $m South Africa 269.9 430.8 281.3 Ghana 140.7 200.4 145.9 Australia 92.3 7.2 65.3 Peru 82.7 (0.7 ) (4.4 ) Venezuela 8.6 (6.5 ) British Virgin Islands(1) (34.4 ) 179.1 Other 15.4 551.2 840.8 481.6 (1) The pre-tax (loss)/income relates to non-operating entities incorporated in the British Virgin Islands and includes, in fiscal 2009, a net loss on disposal and impairment of listed investments (fiscal 2008, profit realized on the sale of the Essakane project). South African mining tax on mining income is determined on a formula basis which takes into account the profit and revenue from mining operations during the year. Non-mining income is taxed at a standard rate. Deferred tax is provided at the estimated effective mining tax rate on temporary differences. Major items causing the Groups income tax provision to differ from the South African mining statutory rate of 43% (2008: 43% and 2007: 45%) were: 2009 $m 2008 $m 2007 $m Tax on net income at South African mining statutory rate (237.0 ) (361.5 ) (216.7 ) Rate adjustment to reflect estimated effective mining tax rate in South Africa of 38% (2008: 38% and 2007: 38%), tax rate in Ghana of 25% (2008: 25% and 2007: 25.0%), tax rate in Australia of 30% (2008: 30% and 2007: 30%), tax rate in Venezuela of 34% for 2008 and 2007 and tax rate in Peru of 35.6% (2008: 35.6% and 2007: not applicable). 49.1 47.2 62.6 South African mining tax formula rate adjustment 27.7 30.5 27.9 Valuation allowance raised against deferred tax assets (17.5 ) (34.0 ) (20.5 ) Reversal of valuation allowance previously raised against deferred tax assets 2.7 4.2 3.8 Non taxable income/non deductible expenditure (54.4 ) 74.6 (45.5 ) Australian tax benefit from tax consolidations 3.3 South African capital gains tax (0.9 ) Foreign levies a |
7EARNINGS PER SHARE
7EARNINGS PER SHARE | |
12 Months Ended
Jun. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
7EARNINGS PER SHARE | 7 EARNINGS PER SHARE For the year ended June30, 2009 Income Numerator $m Shares Denominator Per-share Amount $ Basic earnings per share Shares outstanding July1, 2008 653,200,682 Weighted average number of shares issued during the year 17,127,580 Income available to common stockholders 160.9 670,328,262 0.24 Fully diluted earnings per share Effect of dilutive securities 7,462,470 Income available to common stockholders 160.9 677,790,732 0.24 For the year ended June 30, 2008 Income Numerator $m Shares Denominator Per-share Amount $ Basic earnings per share Shares outstanding July1, 2007 652,158,066 Weighted average number of shares issued during the year 380,146 Income available to common stockholders 452.5 652,538,212 0.69 Fully diluted earnings per share Effect of dilutive securities* 3,713,993 Income available to common stockholders 452.5 656,252,205 0.69 * The conversion of Mvelas debt to equity ,which would have resulted in the issue of another 50,000,000 shares, is anti-dilutive and has been excluded from the calculation. For the year ended June30, 2007 Income Numerator $m Shares Denominator Per-share Amount $ Basic earnings per share Shares outstanding July1, 2006 494,824,723 Weighted average number of shares issued during the year 63,434,963 Income available to common stockholders 246.1 558,259,686 0.44 Fully diluted earnings per share Effect of dilutive securities* 3,947,462 Income available to common stockholders 246.1 562,207,148 0.44 * The conversion of Mvelas debt to equity, which would have resulted in the issue of another 47,000,049 shares, is anti-dilutive and has been excluded from the calculation. |
8RECEIVABLES
8RECEIVABLES | |
12 Months Ended
Jun. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
8RECEIVABLES | 8 RECEIVABLES 2009 $m 2008 $m Product sale trade receivables 137.1 64.7 Other trade receivables 19.2 44.3 Deposits 38.6 0.4 Value added tax 144.0 131.0 Interest receivable 1.1 0.8 Payroll debtors 4.6 4.5 Prepayments 26.8 23.9 Diesel rebate 0.8 1.2 Other 11.3 9.3 383.5 280.1 |
9INVENTORIES
9INVENTORIES | |
12 Months Ended
Jun. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
9INVENTORIES | 9 INVENTORIES 2009 $m 2008 $m Ore stockpiles 44.8 32.4 Gold in-process 28.2 18.9 Consumable stores 121.0 99.5 Other 2.0 2.0 196.0 152.8 |
10PROPERTY, PLANT AND EQUIPMENT
10PROPERTY, PLANT AND EQUIPMENT | |
12 Months Ended
Jun. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
10PROPERTY, PLANT AND EQUIPMENT | 10 PROPERTY, PLANT AND EQUIPMENT 2009 $m 2008 $m Cost 9,361.6 8,701.5 Accumulated depreciation and amortization (3,604.7 ) (3,277.8 ) 5,756.9 5,423.7 Mining properties, mine development costs, mine plant facilities and mineral interests 5,371.5 5,126.1 Asset retirement costs 87.1 76.4 Other non-mining assets 298.3 221.2 5,756.9 5,423.7 Included in property, plant and equipment is cumulative capitalized interest, net of amortization, relating to the following assets: South African operations 13.2 5.6 Tarkwa Mine 17.8 5.1 Cerro Corona 89.2 47.6 120.2 58.3 Depreciation of property, plant and equipment amounted to $433.5 million (2008: $400.5 million, 2007: $388.2 million). |
11GOODWILL
11GOODWILL | |
12 Months Ended
Jun. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
11GOODWILL | 11 GOODWILL Balance at beginning of the year 1,092.8 1,222.7 Translation adjustment (8.1 ) (129.9 ) Balance at end of the year 1,084.7 1,092.8 The goodwill arose on the acquisition of South Deep as described in note 3(c) and was attributable to the upside potential of the asset, deferred tax and other factors. The total goodwill has been allocated to South Deep, being the reporting unit where it is tested for impairment as part of the reporting unit. Goodwill is tested for impairment on an annual basis on June30. In addition, the Group reviews and tests the carrying value of assets when events or changes in circumstances suggest that the carrying amount of a reporting unit may not be recoverable. For goodwill impairment testing purposes, Gold Fields estimated the fair value of the South Deep reporting unit. The process for determining fair value is subjective as gold mining companies typically trade at a market capitalization that is based on a multiple of net asset value and requires management to make numerous assumptions. The net asset value represents a discounted cash flow valuation based on expected future cash flows. The expected future cash flows used to determine the fair value of the reporting unit are inherently uncertain and could materially change over time. They are significantly affected by a number of factors, including, but not limited to, reserves and production estimates, together with economic factors such as the spot gold price and foreign currency exchange rates, estimates of production costs, future capital expenditure and discount rates. Therefore it is possible that outcomes within the next financial year that are materially different from the assumptions used in the impairment testing process could require an adjustment to the carrying values. Based on managements assessment, no impairment to the goodwill was required at June30, 2009. Managements estimates and assumptions for the goodwill impairment test include: Long-term gold price of R245,000 per kilogram ($950 per oz at an exchange rate of R8.02 to $1.00) for fiscal years 2010 and 2011 and R280,000 per kilogram ($950 per oz at an exchange rate of R9.17 to $1.00) for the remainder of the life of mine. The South Deep life of mine is 41 years. An appropriate discount rate of 6% based on a calculated weighted average cost of capital to Gold Fields; Expected future operating costs and capital expenditures to produce proven and probable gold reserves based on mine plans that assume current plant capacity, but exclude the impact of inflation; and Expected cash flows associated with value beyond proven and probable reserves. |
12NON-CURRENT INVESTMENTS
12NON-CURRENT INVESTMENTS | |
12 Months Ended
Jun. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
12NON-CURRENT INVESTMENTS | 12 NON-CURRENT INVESTMENTS 2009 $m 2008 $m Listed investments (a) 312.4 442.4 Unlisted investments (b) 0.8 27.8 Investments held by environmental trust funds (c) 110.0 93.3 Equity investees (d) 51.2 171.1 Other investments 0.8 2.8 475.2 737.4 (a) Listed investments mainly consist of: 2009 2008 Number of shares Marketvalue, $pershare Number of shares Marketvalue, $ pershare Sino Gold Limited 57,968,029 3.76 55,381,651 5.17 Mvelaphanda Resources Limited 8,397,858 3.72 8,397,858 7.44 Conquest Mining Limited 51,783,388 0.34 51,783,338 0.41 GoldQuest Mining Corporation 5,362,500 0.07 5,362,500 0.37 Troy Resources NL 3,130,400 0.91 3,130,400 2.09 Orezone Resources Inc 5,208,333 0.43 41,666,667 1.09 Gold One International Limited 12,500,000 0.26 12,500,000 0.05 Glencar Mining Plc 27,431,197 0.01 The fair value of listed investments at June30, 2009 of $312.4 million (2008: $442.4 million) comprises a cost of $263.7 million (2008: $306.3 million) and a net unrealized gain of $48.7 million (2008: $136.1 million). The net unrealized gain comprises a gross unrealized gain of $65.2 million (2008: $147.2 million) partly offset by a gross unrealized loss of $16.5 million (2008: $11.1 million). The gross unrealized loss of $16.5 million (2008: $711.1 million) comprises 8 equity investments (2008: 8) in listed entities. None of these equity investments have been in a continuous unrealized loss position for more than 12 months. A net realized loss of $16.1 million was reclassified from equity for the year ended June30, 2009 (2008: profit of $3.7 million, 2007: $26.8 million). This realized loss consisted of gross realized gains of $7.2 million and gross realized losses of $23.3 million. (b) Unlisted investments at June30, 2008 comprised mainly preference shares in Mvelaphanda Resources Limited with a cost of $25.0 million. (c) The environmental trust funds are irrevocable trusts under the Groups control. The monies in the trusts are invested primarily in interest bearing short-term investments and the costs of these investments approximate their fair value. The investments provide for the estimated cost of rehabilitation during and at the end of the life of the Groups South African mines. While the asset is under the Companys control, it is not available for the general purposes of the Company. All income from this asset is reinvested or spent to meet these obligations. These obligations are described in note 15, Provision for Environmental Rehabilitation. (d) Equity investees comprise the following at June30, 2009 and 2008: Descriptionofbusiness Ownership % Market value Investment 2009 2008 2009 2008 Rusoro Mining Limited Goldmining 26.4 36.2 48.4 165.7 Rand Refinery Limited Refiningofgoldbullionand by-products 34.9 34.9 The carrying value of the equity investment in Rusoro: 2009 2008 $m $ |
13ACCOUNTS PAYABLE AND PROVISIO
13ACCOUNTS PAYABLE AND PROVISIONS | |
12 Months Ended
Jun. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
13ACCOUNTS PAYABLE AND PROVISIONS | 13 ACCOUNTS PAYABLE AND PROVISIONS 2009 $m 2008 $m Trade payables 191.8 193.7 Accruals 214.6 206.0 Payroll and other compensation 57.5 57.8 Leave pay accrual 50.7 47.1 Funds received for shares to be issued(1) 96.0 Financial instruments payable 1.4 Foreign levies payable 0.3 2.9 Short term portion of deferred income and mining tax 7.1 4.2 Other 11.5 1.2 533.5 610.3 (1) Relates to funds received from the minority shareholders of Gold Fields La Cima in fiscal 2008 for which the shares were not issued until fiscal 2009. The funds are included within minority shareholders as at 30June 2009. |
14SHORT-TERM AND LONG-TERM LOAN
14SHORT-TERM AND LONG-TERM LOANS | |
12 Months Ended
Jun. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
14SHORT-TERM AND LONG-TERM LOANS | 14 SHORT-TERM AND LONG-TERM LOANS 2009 $m 2008 $m Collateralized Mvelaphanda loan agreement (a) 522.9 Split-tenor revolving credit facility (b) 498.5 510.5 Syndicated revolving loan facility (c) 72.0 Project finance facility (d) 150.0 150.0 Preference shares (e) 84.9 152.4 Uncollateralized Commercial paper (f) 141.8 Short-term syndicated facility (g) 20.0 Industrial Development Corporation loan (h) 1.1 Other loans (i) 136.5 0.2 1,103.7 1,337.1 Short-term loans and current portion of long-term loans (317.8 ) (772.9 ) Total long-term loans 785.9 564.2 (a) Mvelaphanda loan On March17, 2004, Mvelaphanda Gold (Proprietary) Limited (Mvela Gold), a wholly owned subsidiary of Mvelaphanda Resources Limited, advanced an amount of $591.3 million to GFI Mining South Africa (Pty) Limited (GFIMSA), (the Mvela Loan). The loan bore interest at a fixed rate of 10.57% nominal annual compounded semi-annually and was guaranteed by Gold Fields, Gold Fields Australia and Gold Fields Holding Company (BVI) Limited (formerly Gold Fields Guernsey). Interest was payable semi-annually and the loan amount was repayable five years from the date of advance. Under the terms of the loan, on the date the loan was repaid, Mvela Gold was obligated to use the entire proceeds of the loan repayment to subscribe for new shares in GFIMSA such that after the subscription it owned 15% of the enlarged equity of GFIMSA. In addition, for a period of one year after the subscription by Mvela Gold of the GFIMSA shares, each of Gold Fields and Mvela Gold was entitled to require the exchange of Mvela Golds GFIMSA shares for ordinary shares of Gold Fields of an equivalent value based on an exchange ratio equal to 15% of a discounted cash flow calculation as applied to GFIMSAs operations divided by the same calculation as applied to Gold Fields operations, with certain adjustments. In connection with the Mvela loan, GFIMSA entered into two interest rate swaps, an amortizing and an accreting swap. The amortizing swap for $236.2million and the accreting swap of $355.1million reflected the profile of the Mvela loan and was designated as a fair value hedge. The fixed rate receivable on these interest rate swaps was equal to the interest rate payable on the loan from Mvelaphanda Gold (Proprietary) Limited and the floating rate payable was the three month Johannesburg Interbank Agreed Rate, or JIBAR rate plus a margin of 1.025%. On June3, 2005, the interest rate swaps were closed-out resulting in a gain of $36.2 million. Of the $36.2 million, $9.9 million, offset by an exchange loss of $5.0 million, was accounted for in the statement of operations as a gain on financial instruments in fiscal 2009 (2008:$8.1 million and 2007:$8.2 million). On March17, 2009, the date the loan was repaid, Mvela Resources took receipt, through its wholly owned subsidiary Mvela Gold, of its 15% shareholding in GFIMSA. Immediately upon receipt of the GFIMSA shares, Mvela Gold exercise |
15PROVISION FOR ENVIRONMENTAL R
15PROVISION FOR ENVIRONMENTAL REHABILITATION | |
12 Months Ended
Jun. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
15PROVISION FOR ENVIRONMENTAL REHABILITATION | 15 PROVISION FOR ENVIRONMENTAL REHABILITATION The Group has made, and expects to make in the future, expenditures to comply with environmental laws and regulations, but cannot predict the full amount of such future expenditures. Estimated future reclamation costs are based principally on legal and regulatory requirements. The following is a reconciliation of the total liability for environmental rehabilitation: 2009 $m 2008 $m Asset retirement obligations Balance at July1 216.2 197.2 Addition to liabilities 19.2 16.9 Liabilities settled (4.0 ) (3.9 ) Accretion of liability 13.9 12.0 Foreign currency translation adjustment (8.4 ) (6.0 ) Balance at June30 236.9 216.2 The Group intends to finance the ultimate rehabilitation costs of the South African operations from the monies invested with the environmental trust fund, ongoing contributions, as well as the proceeds of the sale of assets and gold from plant clean-up at the time of mine closure. |
16PROVISION FOR POST-RETIREMENT
16PROVISION FOR POST-RETIREMENT HEALTH CARE COSTS | |
12 Months Ended
Jun. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
16PROVISION FOR POST-RETIREMENT HEALTH CARE COSTS | 16 PROVISION FOR POST-RETIREMENT HEALTH CARE COSTS 2009 2008 $m $m Gold Fields Group (excluding South Deep) accrued post-retirement health care costs (a) 11.0 7.2 South Deep accrued post-retirement health care costs (b) 0.4 0.7 Gold Fields Group accrued post-retirement health care costs 11.4 7.9 The Group is exposed to obligations for post-retirement health care costs under two separate schemes, the Gold Fields Group (excluding South Deep) health care scheme and the South Deep health care scheme. (a) Gold Fields Group (excluding South Deep) accrued post-retirement health care costs The Group has certain liabilities to subsidize the contributions payable by certain pensioners and dependants of ex-employees on a pay-as-you-go basis. The Groups contributions to these schemes on behalf of current and retired employees amounted to $0.1million in fiscal 2009 (2008: $0.2million and 2007: $0.2 million). The obligation has been actuarially valued and the outstanding contributions will be funded over the lifetime of these pensioners and dependants. The following table sets forth the funded status and amounts recognized by the Group (excluding South Deep) for post-retirement health care costs: 2009 2008 $m $m Actuarial present value 11.0 7.2 Plan assets at fair value Accumulated benefit obligation in excess of plan assets 11.0 7.2 Prior service costs Unrecognized net (gain)/loss Post-retirement health care liability 11.0 7.2 The following is a reconciliation of the benefit obligation: Balance at beginning of year 7.2 8.6 Service costs 0.6 0.8 Contributions paid (0.1 ) (0.2 ) Additional/(release of) cross subsidization liability 2.9 (1.4 ) Foreign currency translation adjustment 0.3 (0.6 ) Balance at end of year 11.0 7.2 The obligation has been valued using the projected unit credit funding method on past service liabilities. The valuation assumes a health care cost inflation rate of 7.0%per annum (2008: 8.0%) and a discount rate of 8.375%per annum (2008: 10.0%). 2009 2008 $m $m Service costs 0.6 0.8 Net periodic benefit cost 0.6 0.8 Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one percentage point increase in assumed health care cost trend rates would have increased the aggregate of service and interest cost for 2009 by $0.2 million (2008: $0.1million). The effect of this change on the accumulated post-retirement health care benefit obligation at fiscal year-end 2009 would be an increase of $1.0 million (2008: $0.3million). A one percentage point decrease in assumed health care cost trend rates would have decreased the aggregate of service and interest cost for 2009 by $0.1 million (2008: $0.1million). The effect of this change on the accumulated post-retirement health care benefit oblig |
17EMPLOYEE BENEFIT PLANS
17EMPLOYEE BENEFIT PLANS | |
12 Months Ended
Jun. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
17EMPLOYEE BENEFIT PLANS | 17 EMPLOYEE BENEFIT PLANS Retirement benefits The Gold Fields Limited Corporate Pension Fund, a defined benefit scheme, with 14 active members, transferred all pensioner members to a retirement scheme of their choice by June30, 2005. The scheme was valued at intervals of not less than three years using the projected unit credit method. The last actuarial valuation was carried out at June30, 2004 and showed the fund was under-funded by approximately $0.4million, which was fully provided for. This was the only defined benefit scheme in the Group and was wound up in fiscal 2009. Contributions to the various retirement schemes are fully expensed during the year in which they are funded. The cost of providing retirement benefits for the Companys defined contribution plans for the year amounted to $57.0 million (2008: $68.0million and 2007: $56.5million). Share option schemes The Company currently maintains the Gold Fields Limited 2005 Share Plan and the Gold Fields Limited 2005 Non-Executive Share Plan. The Company also maintains prior stock plans (the GF Management Incentive Scheme and the GF Non-Executive Director Share Plan), but no longer grants awards under these plans. The details of these Plans are discussed below. The Gold Fields Limited 2005 Share Plan: At Gold Fields annual general meeting held on November17, 2005, the shareholders approved The Gold Fields Limited 2005 Share Plan, or The 2005 Plan, under which employees, including executive directors, will be compensated going forward. The 2005 Plan provides for two types of awards: performance vesting restricted shares, or PVRS, and performance allocated share appreciation rights, or SARS. The PVRS will only be released to participants and the SARS will vest three years after the date of the award and/or allocation of such shares. However, in respect of the PVRS, Company performance criteria need to be met in respect of awards to executives. The size of the initial allocation of SARS and PVRS is dependent on the performance of the participant at the time of allocation. The allocations under The 2005 Plan are usually made annually in March. A special allocation was made in June 2008 as a direct response to the need to retain critical skills. Details of the PVRS and SARS granted under this Plan are as follows: Number of PVRS Number of SARS Average price Rand US$ Outstanding at July1, 2006 413,700 979,250 125.28 19.58 Granted during the year 1,507,797 876,559 124.19 17.25 Exercised and released (2,042 ) (805 ) 125.28 17.40 Forfeited (64,003 ) (89,464 ) 120.13 16.68 Outstanding at June30, 2007 1,855,452 1,765,540 124.75 17.45 Granted during the year 4,238,161 2,569,481 105.97 14.58 Exercised and released (21,933 ) Forfeited (674,793 ) (497,084 ) 118.77 16.34 Outstanding at June30, 2008 5,396,887 3,837,937 112.73 14.09 Granted during the year 2,616,171 1,311,271 108.90 12.09 Exercised and released (7 |
18DERIVATIVE FINANCIAL INSTRUME
18DERIVATIVE FINANCIAL INSTRUMENTS AND FAIR VALUE AND CREDIT RISK OF FINANCIAL INSTRUMENTS | |
12 Months Ended
Jun. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
18DERIVATIVE FINANCIAL INSTRUMENTS AND FAIR VALUE AND CREDIT RISK OF FINANCIAL INSTRUMENTS | 18 DERIVATIVE FINANCIAL INSTRUMENTS AND FAIR VALUE AND CREDIT RISK OF FINANCIAL INSTRUMENTS Risk management activities In the normal course of its operations, the Group is exposed to commodity price, currency, interest rate, liquidity and credit risk. In order to manage these risks, the Group has developed a comprehensive risk management process to facilitate control and monitoring of these risks. Concentration of credit risk The Groups financial instruments do not represent a concentration of credit risk as the Group deals with a number of major banks. Accounts receivable are regularly monitored and assessed and where necessary an adequate level of provision is maintained. A formal process of allocating counterparty exposure and prudential limits is approved by the audit committee and is applied under the supervision of the Groups executive committee. Facilities requiring margin payments are not engaged. Foreign currency and commodity price risk In the normal course of business the Group enters into transactions for the sale of its gold, denominated in US Dollars. In addition, the Group has assets and liabilities in a number of different currencies (primarily US Dollars and Australian Dollars). As a result, the Group is subject to transaction and translation exposure from fluctuations in foreign currency exchange rates. As at June30, 2009, Gold Fields held the following derivative instrument to protect its exposure to adverse movements in foreign currency. As a result of the draw down on January31, 2007 of $550 million under a $1.8 billion bridge loan facility entered into to close-out the Western Areas gold derivative structure and refinance certain working capital loans, U.S. dollar/rand forward cover was purchased during the fiscal quarter ended March31, 2007 in an amount of $550.8 million for settlement August6, 2007, at an average forward rate of R7.3279 based on a spot rate of R7.1918. Subsequently, that cover was extended for periods of between one and three months during fiscal 2008 and 2009. The cover was reduced as a result of loan repayments of $60.8 million and $172.0 million made on December6, 2007 and December31, 2007 respectively. During fiscal 2009, a further amount of $44 million was repaid against the loan and the forward cover was reduced by the same amount. The balance of the $274 million forward cover was extended to July15, 2009, being the next repayment date on the loan, at an average forward rate of R8.0893/$1. For accounting purposes, this forward cover has been designated as a hedging instrument. As a result the gains and losses are accounted for under foreign exchange gains/(losses), along with gains and losses on the underlying loan that has been hedged. The forward cover points are deemed to be an interest cost and are therefore accounted for as part of interest. The forward cover was closed out on September17, 2009. Under the long-established structure of sales agreements prevalent in the industry, substantially all of Gold Fields copper concentrate sales are provisionally priced at the time of shipment. The provisional prices are finalized in a contractually specified fut |
19ADDITIONAL CASH FLOW INFORMAT
19ADDITIONAL CASH FLOW INFORMATION | |
12 Months Ended
Jun. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
19ADDITIONAL CASH FLOW INFORMATION | 19 ADDITIONAL CASH FLOW INFORMATION (a) Supplemental cash flow disclosures The income and mining taxes paid in the statement of cash flow represents actual cash paid. The following amounts of interest paid were included in net cash provided by operating activities: 2009 $m 2008 $m 2007 $m Interest paid 73.9 100.4 89.3 (b) Non cash-items Excluded from the statements of cash flows are the following: i) For the year ended June30, 2009 The $122.4 million loss on mark-to-market of listed investments. ii) For the year ended June30, 2008 The $43.1 million gain on mark-to-market of listed investments. iii) For the year ended June30, 2007 The $65.8 million gain on mark-to-market of listed investments. (c) Acquisitions of subsidiaries (i) Acquisition of South Deep The following information reflects the cashflow impacts of the acquisition of South Deep. See note3(c). 2007 $m Total purchase consideration 2,188.3 Purchase consideration settled in shares (1,217.8 ) Purchase of shares in prior years (116.6 ) Insurance claim refund due to Barrick (24.2 ) Purchase consideration used to settle borrowings of BGSA 406.8 Purchase consideration settled in cash 1,236.5 Cash and cash equivalents in subsidiary acquired (3.5 ) Cash outflow on acquisition 1,233.0 (ii) Acquisition of IRCA (Pty) Limited and TMTI (Pty) Limited The following information reflects the cashflow impacts of the acquisition of IRCA (Pty) Limited and TMTI (Pty) Limited. See note 3(d). 2007 $m Purchase consideration settled in cash 3.2 Inter-company loans advanced 2.1 Overdraft in subsidiary acquired 2.6 Cash outflow on acquisition 7.9 The $7.9 million net cash paid is included in acquisition of subsidiaries on the cash flow statement. |
20COMMITMENTS
20COMMITMENTS | |
12 Months Ended
Jun. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
20COMMITMENTS | 20 COMMITMENTS 2009 $m 2008 $m Capital expenditure authorized 958.7 932.3 contracted for 131.4 167.5 Other guarantees 3.1 39.6 Guarantees consist of $0.6 million to New Africa Mining Fund (NAMF), $1.2 million to the Department of Minerals and Energy in South Africa and $1.3million for numerous other obligations. NAMF is a private equity fund incorporated in South Africa for the purpose of investing in junior mining opportunities in South Africa and the broader Africa continent. The Group also provides environmental obligation guarantees with respect to its Ghanaian and Australian operations. These guarantees, amounting to $39.6 million at June30, 2009, have not been included in the amount of guarantees of $3.1 million because they are fully provided for under the asset retirement obligation. Under an agreement with the Public Investment Commission (PIC) related to the Mvela Loan, the Company effectively guaranteed a loan of R150.0million ($18.8million) made by the PIC to certain lenders to Mvela, at an interest rate of 14.25%. Under the terms of the agreement, the PIC had the right to require the Company to assume all its rights and obligations under this loan together with its underlying security. The PIC was obliged to pay the Company a guarantee fee equal to 3.75%per annum on the date the loan was repaid. This guarantee expired with repayment of the Mvela loan on March17, 2009. Commitments will be funded from internal cash resources and borrowings as necessary. |
21CONTINGENT LIABILITIES
21CONTINGENT LIABILITIES | |
12 Months Ended
Jun. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
21CONTINGENT LIABILITIES | 21 CONTINGENT LIABILITIES World Gold Council Gold Fields is a member of the World Gold Council. In terms of the membership agreement, all members are responsible for certain costs, including ongoing costs on a three year rolling basis, winding up costs, if applicable, and various other contingent liabilities. Apportionment of liabilities, should they arise, is done proportionate to the members production relative to the total production of all members. To date, no claims have been made on Gold Fields. Occupational health care services The Group provides occupational health care services to its employees through its existing facilities at the various operations. There is a risk that the cost of providing such services could increase in the future depending upon changes in the nature of underlying legislation and the profile of employees. This increased cost, should it transpire, is currently indeterminate. The Group is monitoring developments in this regard. Randgold and Exploration summons On August21, 2008, Gold Fields Operations received a summons from Randgold and Exploration Company Limited (RE) and African Strategic Investment (Holdings) Limited. The summons claims that during the period that Gold Fields Operations was under the control of Brett Kebble, Roger Kebble and others, Gold Fields Operations was allegedly part of a scam whereby JCI Limited unlawfully disposed of shares owned by RE in Randgold Resources Limited, or Resources, and Afrikander Lease Limited, now Uranium One. Gold Fields Operations preliminary assessment was that it had strong defences to these claims and accordingly, Gold Fields Operations attorneys were instructed to vigorously defend the claims. Werksmans Attorneys have been so instructed. Much of the preparatory work is still being undertaken and pleadings have not yet closed. The claims have been computed in various ways. The highest claims have been computed on the basis of the highest prices of Resources and Uranium One between the dates of the alleged thefts and March 2008 (approximately $1.4 billion or R11 billion). The alternative claims have been computed on the basis of the actual amounts allegedly received by Gold Fields Operations to fund its operations (approximately $64.4 million or R519 million). It should be noted that the claims lie only against Gold Fields Operations, whose only interest is a 50% stake in the South Deep Mine. |
22LINES OF CREDIT
22LINES OF CREDIT | |
12 Months Ended
Jun. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
22LINES OF CREDIT | 22 LINES OF CREDIT The Group had unused lines of credit available amounting to $632.6 million at June30, 2009 (2008: $371.3 million). |
23RELATED PARTY TRANSACTIONS
23RELATED PARTY TRANSACTIONS | |
12 Months Ended
Jun. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
23RELATED PARTY TRANSACTIONS | 23 RELATED PARTY TRANSACTIONS New Africa Mining Fund John G Hopwood, a non-executive director of Gold Fields Limited, is a Trustee of New Africa Mining Fund and is the Chairman of the New Africa Mining Fund Investment Committee. Gold Fields has been instrumental in the formation of the New Africa Mining Fund and is a significant investor in the fund. The fund has as its objectives the promotion of black economic empowerment and the transformation of the South African mining industry by facilitating junior mining projects. As at June30, 2009 Gold Fields Limited had contributed net $3.9 million. Gold Fields previously provided a commitment to fund $6.2 million in total for an original commitment period of six years. This commitment period expired on February28, 2009. No new investments are permitted but follow on investments of up to $7.0 million are allowed, the Gold Fields portion of which is estimated at approximately $0.6 million. Mvelaphanda Resources Limited Tokyo MG Sexwale, a non-executive director of Gold Fields Limited until November2, 2007 was an executive director on the Board of Mvelaphanda Resources Limited (Mvela). Mvela is a broad based black economic empowerment consortium. On July10, 2002, the Group announced that it had granted Mvela participation rights, varying between a minimum of 5% and a maximum of 15% in any new Gold Fields precious metals exploration projects in Africa, beginning March1, 2002. In consideration for the transaction Mvela was obligated to issue the Company with options to subscribe in tranches for ordinary shares, consisting of one ordinary share and one unsecured debenture issued by Mvela, in Mvela at a 10% premium to the five day weighted average trading price on the JSE. The Company was issued with 4,047,858 options under this arrangement. As at June30, 2009, the Company had exercised all the Mvela options to subscribe for ordinary shares which were held by the Company. The shares are reflected under listed investments. The term of the Mvela exploration agreement was five years. On February28, 2007 the agreement expired in accordance with its terms. The transaction with Mvela to acquire a 15% beneficial interest in the Groups South African mining operations for a total cash consideration of R4.1billion ($591.3million) became effective on March15, 2004. The Group had provided Mvela with vendor financing of R300million ($47.6million) comprising R200million of preference shares and R100million of ordinary shares on commercial terms in connection with the transaction. The R200 million in preference shares were repaid in accordance with the terms of the contract on March17, 2009. Rand Refinery Rand Refinery, in which the Company holds a 34.9% interest, has an agreement with the Group whereby it refines all the Companys South African and Ghanaian operations gold production. The Groups chief executive officer is currently an alternate director of Rand Refinery and has held his directorship since September30, 2008. Prior to this date, he had been a director since July10, 2000. The Company paid Rand Refinery $1.8 million, $2.2 million and $1.3 million in refining fees for the y |
24GEOGRAPHICAL AND SEGMENT INFO
24GEOGRAPHICAL AND SEGMENT INFORMATION | |
12 Months Ended
Jun. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
24GEOGRAPHICAL AND SEGMENT INFORMATION | 24 GEOGRAPHICAL AND SEGMENT INFORMATION Gold Fields is primarily involved in gold mining, exploration and related activities. Activities are conducted and investments held both inside and outside of South Africa. The segment results have been prepared and presented based on managements reporting format. Management prepares its financial records in accordance with International Financial Reporting Standards (IFRS) and reconciled IFRS information is what the Companys chief operating decision maker reviews in allocating resources and making investment decisions. The Companys gold mining operations are managed and internally reported based upon the following geographic areas: in South Africa the Driefontein division, the Kloof division, the Beatrix division and the South Deep mine, in Ghana the Tarkwa and Damang mines, Australia, Venezuela and Peru, starting in fiscal 2008. The Group also has exploration interests which are included in the Corporate and other segment. Corporate costs are allocated between segments based upon the time spent on each segment by members of the executive team. Fiscal year ended June30, 2009 South Africa Ghana Australia Venezuela Peru Driefontein Kloof Beatrix South Deep Tarkwa Damang St Ives/ Agnew Choco 10 Cerro Corona Corporate and other Reconciling items Group Consolidated Statement of operations Revenue 726.5 562.3 339.1 155.2 537.2 175.7 548.5 183.8 3,228.3 Operating costs(1) (391.8 ) (342.3 ) (226.1 ) (131.9 ) (338.1 ) (132.4 ) (330.3 ) (86.4 ) (106.0 ) (2,085.3 ) Gold inventory change(2) 18.0 2.3 (1.1 ) 4.1 11.4 34.7 Operating profit 334.7 220.0 113.0 23.3 217.1 45.6 217.1 101.5 (94.6 ) 1,177.7 Amortization and depreciation (69.4 ) (76.9 ) (48.3 ) (31.4 ) (55.0 ) (18.8 ) (104.9 ) (38.9 ) (16.2 ) 26.3 (433.5 ) Net operating profit/(loss) 265.3 143.1 64.7 (8.1 ) 162.1 26.8 112.2 62.6 (16.2 ) (68.4 ) 744.1 Exploration expenditure (56.4 ) (1.6 ) (58.0 ) Other items as detailed in statement of operations (21.0 ) (17.0 ) (7.0 ) 6.1 (14.3 ) (9.6 ) 0.4 (17.8 ) (74.8 ) 20.1 (134.9 ) Current taxation (66.9 ) (28.2 ) (0.1 ) (16.1 ) (8.3 ) (21.0 ) (16.1 ) (16.2 ) (172.9 ) Deferred taxation (19.6 ) (12.2 ) (21.8 ) 0.8 * (31.8 ) 0.3 (21.8 ) (3.3 ) 21.1 (3.4 ) (91.7 ) Profit/(loss) after taxation 157.8 85.7 35.8 (1.2 ) 99.9 9.2 69.8 25.4 (142.5 ) |
25SUBSEQUENT EVENTS
25SUBSEQUENT EVENTS | |
12 Months Ended
Jun. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
25SUBSEQUENT EVENTS | 25 SUBSEQUENT EVENTS Subsequent events have been assessed through December 3, 2009. Disposal of stake in Sino Gold On June3, 2009, Gold Fields Limited reached agreement to sell its 19.9% stake in Sino Gold Mining Limited (Sino) to Eldorado Gold Corporation (Eldorado) for a total consideration of approximately $282 million payable in Eldorado shares which were received on July27, 2009. Gold Fields received a share exchange ratio of 48 Eldorado shares for every 100 Sino Gold shares, which resulted in Gold Fields holding 27,824,654 Eldorado shares or approximately 7% of the outstanding shares of Eldorado on a fully diluted basis. In addition, Gold Fields holds a top-up right for a period of 18 months, which will apply should Eldorado purchase an additional 5% or more of the outstanding shares of Sino Gold and the sellers in that transaction realize a consideration ratio in excess of the share exchange ratio of 0.48 Eldorado shares per Sino Gold share received by Gold Fields. On September4, 2009, Gold Fields disposed of its holding in Eldorado for a total consideration of CAD323 million (approximately $299.3 million). Acquisition of Glencar Mining On July24, 2009, Gold Fields Limited, through a wholly owned subsidiary, reached agreement with Glencar Mining Plc (Glencar) on the terms of a recommended cash offer to acquire the entire issued capital of Glencar. On August7, 2009, the offer document was posted to eligible Glencar shareholders who had until September4, 2009 to accept the offer. On September7, 2009, Gold Fields announced that it had received 83.1% of acceptances and therefore 83.1% of the issued share capital of Glencar. All conditions of the offer were satisfied or waived at the time and therefore the offer was declared unconditional in all respects. On September7, 2009, Gold Fields took control of Glencar as the existing directors of Glencar resigned and Gold Fields appointed three new directors. Subsequently, Gold Fields completed the final squeeze-out of shareholders on November 9, 2009. Gold Fields now holds 100% of Glencar Mining Plc. Termination of royalty over St Ives On August27, 2009 an Agreement was executed in terms of which the royalty payable by St Ives Gold Mining Company Pty Ltd (St. Ives) to certain subsidiaries of Morgan Stanley Bank was terminated for a consideration of A$308 million. When Gold Fields acquired St Ives in late 2001, the total consideration included the royalty, which was subsequently acquired by subsidiaries of Morgan Stanley Bank. The royalty comprised two parts: (i)a payment equal to 4% of the net smelter returns to the extent that cumulative production of gold from November30, 2001 exceeded 3.3million ounces, but subject to the average spot price of gold for the relevant quarter exceeding A$400 per ounce; and (ii)provided that the gold price exceeded A$600/oz, a payment equal to 10% of the difference between the revenue calculated at the spot gold price expressed in Australian dollars per ounce and at a price of A$600/oz calculated on all future ounces produced by St Ives. |
Schedule 1-Valuation and Qualif
Schedule 1-Valuation and Qualifying Accounts | |
12 Months Ended
Jun. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Schedule 1-Valuation and Qualifying Accounts | Schedule 1Valuation and Qualifying Accounts Balanceat beginning of period Charged to costs and expenses Deduction Arising on acquisition of subsidiaries Foreign currency translation adjustment Balance atendof period Year ended June30, 2009 Valuation allowance 186.4 17.5 (2.7 ) (5.7 ) 195.5 Year ended June30, 2008 Valuation allowance 155.8 34.0 (4.2 ) 0.8 186.4 Year ended June30, 2007 Valuation allowance 92.1 20.5 (3.8 ) 44.1 2.9 155.8 |
Document Information
Document Information | |
12 Months Ended
Jun. 30, 2009 USD / shares | |
Document Information [Text Block] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | 2009-06-30 |
Entity Information
Entity Information (USD $) | |
12 Months Ended
Jun. 30, 2009 | |
Entity [Text Block] | |
Trading Symbol | GFI |
Entity Registrant Name | GOLD FIELDS LTD |
Entity Central Index Key | 0001172724 |
Current Fiscal Year End Date | --06-30 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 704,749,849 |