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MEDIA RELEASE
SALIENT FEATURES
SIGNATURES

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Operational performance was robust, with operating profit of R1.6 billion (US$152 million), in line with that achieved in the previous quarter, despite a 5.7 per cent quarter-on-quarter increase in unit cash costs, which included a previously agreed annual wage increase in South Africa of 9 per cent. Additional items contributing to the reduction in earnings were a R67 million increase in amortisation, and a R85 million increase in deferred tax at Beatrix.

Revenue for the quarter increased 4 per cent from R3,826 million (US$372 million) to R3,964 million (US$382 million) due to an increase in gold sold from 1,193,000 ounces in the June quarter to 1,219,000 ounces in the September quarter.

The Company’s balance sheet remains strong, with a cash balance at the end of the quarter of R1,439 million (US$136 million), after payment of a bi-annual dividend of R1,039 million (US$97 million) and tax payments of R486 million (US$47 million).

The Rand gold price received decreased from R105,024 per kilogram to R104,542 per kilogram due primarily to the strengthening of the Rand/US Dollar exchange rate from R10.51 during the June quarter to R10.38 in the September quarter. The effect of the stronger Rand, however, was partially offset by the average US Dollar gold price increasing from $311 per ounce to $313 per ounce quarter on quarter.

Attributable gold production decreased from 1,159,000 ounces to 1,130,000 ounces in the current quarter. Production was 14,000 ounces lower at the South African operations and 15,000 ounces lower at the international operations.

Operations

Kloof once again achieved a 6 per cent increase in production from 273,000 ounces to 289,000 ounces due to an increase in underground tonnage from 807,000 to 866,000 tons, while grade was maintained. Total cash costs increased slightly from US$175 per ounce to US$179 per ounce.

In the Free State, production at Beatrix decreased 9 per cent to 157,000 ounces from 172,000 due to lower yields, despite an increase in tons milled from 1,135,000 tons to 1,164,000 tons. Management expect yields to improve in the near future. Total cash costs increased to US$199 per ounce from US$165 per ounce.

In Ghana, Tarkwa had a good quarter with production increasing by 24 per cent from 120,000 ounces in the June quarter to 149,000 ounces in the September quarter. Total cash costs remained unchanged at US$180 per ounce. At Damang, production decreased 18 per cent to 70,000 ounces as a result of a 5 per cent drop in mill throughput and a 13 per cent decrease in yield. Both factors were anticipated as the mill treated harder and lower grade ore sources from both the open pit and stockpiles. Total cash costs at Damang increased from US$190 per ounce to US$263 per ounce, and despite lower grade ores now being encountered, total cash costs are expected to stabilize at around US$240 per ounce.

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As expected, in Australia the performance of St. Ives and Agnew was poorer quarter on quarter; but operations at Agnew moved back to profitability with the mine reporting a significant reduction in total cash costs from US$311 per ounce to US$236 per ounce.

Arctic Platinum Partnership

The analysis so far suggests that due to the nature of the concentrate produced by the Suhanko Project, a number of conventional downstream processes and tolling options are sub optimal, particularly considered against the background of a volatile Palladium market. As a result, the study had been broadened to include alternative downstream treatment options, leading to a delay in completion of the study, which had been slated for September 2002. A further phase of work is already underway to assess these options to a greater degree of certainty.

Exploration work during the quarter focused on consolidation of all recent drilling programs and in particular, the assessment of the SK Reef ore bodies from an open pit and underground mining point of view and exploration for higher grade offset style occurrences identified in the vicinity Narkaus Intrusion. Work in these areas continues.

Gold Fields and Outokumpu are continuing joint funding of this program at their respective interests of 51% and 49%.

Exploration

New opportunities are being examined in Tanzania, Burkina Faso, Democratic Republic of Congo, China, Ecuador, Chile, Canada, and Eritrea. During the quarter, Gold Fields made an A$10 million investment in Sino Mining, an Australian gold company, to secure a 10 per cent interest in that company. While Sino operates a small producing mine in China, the Gold Fields investment is aimed specifically at giving Gold Fields exposure to Sino’s highly prospective exploration activities in China. Sino is actively exploring several highly promising gold prospects in that country.

Gold Fields Limited is one of the world’s largest unhedged gold companies with more than 4 million ounces of attributable gold production per annum, 187 million ounces of mineral resources, and reserves of 79 million ounces. The company has operations in South Africa, Australia and Ghana (West Africa) and gold and platinum group metals exploration worldwide. It is focused on increasing value at its existing operations and on international growth. The principal trading market for the company’s ordinary shares is the JSE Securities Exchange South Africa (GFI). In addition, the company’s ordinary shares are listed on the London Stock Exchange, on Euronext in Paris and Brussels, and the SWX Swiss exchange. The company’s American Depositary shares are listed on the New York Stock Exchange (GFI).

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SALIENT FEATURES

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Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

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