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Forward looking statements

This report contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended, or the Exchange Act, with respect to Gold Fields’ financial condition, results of operations, business strategies, operating efficiencies, competitive position, growth opportunities for existing services, plans and objectives of management, markets for stock and other matters...

These forward-looking statements, including, among others, those relating to the future business prospects, revenues and income of Gold Fields, wherever they may occur in this report and the exhibits to the report, are necessarily estimates reflecting the best judgment of the senior management of Gold Fields and involve a number of risks and uncertainties that could... read more

  Salient features
 
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US$1,143 per ounce All-in-sustaining costs
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US$1,164 per ounce All-in-costs
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501,000 ounces of attributable gold production
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US$29 million cash outflow from operating activities*
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3-year wage deal concluded at South Deep

Note: *Cash flow from operating activities less net capital expenditure and environmental payments
  Q1 2015 – a weaker quarter as planned

JOHANNESBURG.
7 MAY 2015

Gold Fields Limited (NYSE & JSE: GFI) today announced net losses attributable to our shareholders of US$14 million for the March 2015 quarter compared with US$26 million in the December 2014 quarter and US$nil in the March 2014 quarter. Normalised losses of US$13 million for the March 2015 quarter compared with earnings of US$17 million in the December 2014 quarter and US$21 million in the March 2014 quarter.


Statement by Nick Holland, Chief Executive Officer of Gold Fields

Q1 2015 – a weaker quarter as planned

In-line with and incorporated into our guidance for 2015, Gold Fields had a weaker Q1 2015, due to the seasonal weakness in South Africa due to the Christmas break and mine scheduling at the other operations. Attributable gold equivalent production decreased by 10 per cent quarter on quarter to 501,000 ounces. There was a concomitant increase in unit costs, despite overall costs being well contained. Net operating costs decreased by 10 per cent quarter on quarter to US$366 million. All-in sustaining costs (AISC) increased by 12 per cent quarter on quarter to US$1,143/oz and all-in costs (AIC) were 11 per cent higher at US$1,164/oz. In addition to lower gold sold, unit costs were negatively impacted by the gold inventory charge to cost, lower by-product credits and higher sustaining capital expenditure.

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Consequently, we report a normalised loss of US$13 million, compared to normalised earnings of US$17 million in the December 2014 quarter. The loss included a negative deferred tax adjustment of US$21 million to account for exchange rate changes. Cash outflow from operating activities less net capital expenditure and environmental payments amounted to US$29 million in the March 2015 quarter compared with an inflow of US$54 million in the December 2014 quarter. The FCF margin of negative 3 per cent in the March quarter compared with positive 9 per cent in the December quarter, mainly due to lower gold sold and higher seasonal taxation paid in Ghana and Australia.

FY15 outlook maintained

Despite the seasonally weaker results for Q1, previously published guidance for 2015, of attributable gold equivalent production of 2.2 million ounces at AISC of US$1,055/oz and AIC of US$1,075/oz, remains intact.

SOUTH AFRICA

Regrettably, we had a fatal accident at South Deep on 8 March. Our sincere condolences go out to the family, friends and colleagues of Mr Kennedy Katongo, who tragically lost his life in an engineering related accident.

During the March quarter, gold production at South Deep decreased by 25 per cent quarter on quarter to 1,129 kilograms (36,300 ounces), mainly due to the extended Christmas break as well as the previously flagged knock-on effects of the four-month safety-related closure in the second half of 2014. The work to Ďget the basics rightí, which we reported on previously, is ongoing and good progress is being made on recruiting additional skills at the mine. These interventions are expected to gain traction progressively through the remainder of the year and, together with the ground-breaking three-year wage deal signed post the end of the quarter (discussed below), is expected to contribute to a stronger performance during the second half of the year. In addition, we have implemented significant initiatives to improve the culture of safety and productivity, the benefits of which are only likely to be realised in the medium term.

WEST AFRICA

Attributable gold production at the West African operations decreased by 3 per cent quarter on quarter to 157,300 ounces. The decrease in production at Damang was partially offset by the increase in production at Tarkwa. AIC increased by 15 per cent quarter on quarter to US$1,299/oz, mainly due to higher capital expenditure related to a large fleet replacement at Tarkwa partially offset by lower operating costs and an inventory credit to costs.

PERU

Attributable equivalent gold production at Cerro Corona decreased by 21 per cent to 66,300 ounces, mainly due to lower gold and copper head grades treated, in line with the mine sequencing and the production plan for the March quarter. AIC decreased by 2 per cent quarter on quarter to US$671eq/oz on the back of lower gold sold and lower by-product credits, partially offset by lower operating costs, an inventory credit to costs and lower capital expenditure.

AUSTRALIA

Gold production at the Australian operations decreased by 7 per cent quarter on quarter to 241,400 ounces, with lower production at all the operations except St Ives. AIC increased by 14 per cent quarter on quarter to A$1,240/oz (US$978/oz) mainly due to lower gold sold and the gold inventory charge to cost, partially offset by the lower operating costs and lower capital expenditure.

Marginal increase in net debt

Mainly as a result of the decrease in cash inflow from operating activities from US$225 million in the December 2014 quarter to US$150 million in the March 2015 quarter, net debt increased by US$46 million from US$1,453 million at the end of December 2014 to US$1,499 million at the end of March 2015. Net debt/EBITDA at the end of the March 2015 quarter was 1.41x, compared to 1.30x at the end of December 2014. We maintain our target of reducing the net debt/EBITDA ratio to 1.0x by the end of 2016.

South Deep wage deal signed post quarter-end

On 10 April 2015, we signed a three-year wage and other conditions of employment agreement with the registered trade unions at our South Deep mine. The agreement is expected to result in average annual wage increases of 10 per cent over the three-year period of the deal, with the first increase effective on 1 April 2015.

The negotiations took place at a company-level in recognition of South Deepís significantly different operating model and labour profile to that of the other gold mining companies in South Africa. Specifically, South Deep is the only fully mechanised gold mine in South Africa. This ground-breaking deal will contribute to a more stable operating environment for South Deep over the next three years and position the mine more competitively to attract and retain the scarce mechanised mining skills required for it to achieve its full potential. We thank our union partners for the constructive engagement and look forward to working together to deliver South Deep.

Reporting

The Groupís Integrated Annual Report, Annual Financial Statements and Mineral Resource and Mineral Reserve Statements for the year ended 31 December 2014 as well as the Form 20F, were all published at the end of the quarter. These documents, which are available on-line and in printed form from the Company Secretary, were designed to provide all stakeholders with a comprehensive overview of the Groupís performance as well as its operational, financial and social strategies. Stakeholders are encouraged to scrutinise these documents and to contact us with any comments or questions.

Mining charter declarator court process

Gold Fields confirms that on 31 March 2015 the Mineral Resources Minister Advocate Ngoako Ramatlhodi and the Chamber of Mines confirmed that the Minister, the Department of Mineral Resources (DMR) and the Chamber of Mines of South Africa would jointly approach the courts to clarify, amongst others, the principles of assessing the ownership element of the mining charter. Constructive collaboration between the Minister, the DMR and the Chamber continue in preparation for the declaratory process to be filed in due course.



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Stock data
 
NYSE – (GFI)
   
Number of shares in issue   Range – Quarter   US$3.66 – US$5.97
– at end March 2015   774,568,365   Average Volume – Quarter   5,642,608 shares/day
– average for the quarter   772,474,860  
JSE Limited – (GFI)
   
Free Float   100 per cent  
ADR Ratio   1:1   Range – Quarter   ZAR44.30 – ZAR67.45
Bloomberg/Reuters   GFISJ/GFLJ.J   Average Volume – Quarter   2,300,235 shares/day