Annual
Financial Report
2018
2018
Currently viewing: Glossary of terms / Next: Glossary of terms – Sustainable Development
| ABET | Adult Basic Education and Training | |
| AISC | All-in sustaining costs. AISC comprises on-site mining costs (on a sales basis); on-site general and administrative costs; royalties and production taxes; realised gains/losses on hedges due to operating costs; community costs related to current operations; permitting costs related to current operations; third-party smelting, refining and transport costs; non-cash remuneration (site-based); stock-piles/product inventory write-down; operational stripping costs; by-product credits; corporate general and administrative costs (including share-based remuneration); reclamation and remediation – accretion and amortisation (operating sites); exploration and study costs (sustaining); and capital exploration (sustaining) | |
| AIC | All-in costs. AIC is AISC plus community costs not related to current operations; community costs not related to current operations; reclamation and remediation costs not related to current operations; exploration and study costs (non-sustaining); capital exploration (non-sustaining); capitalised stripping & underground mine development (non-sustaining); and capital expenditure (non-sustaining) | |
| AS/NZ 4801 | Australian occupational health and safety management standards | |
| Backfill | Material generally sourced from processing plant mine residues and utilised for the filling of mined voids, to ensure long-term stability of excavations and minimise the effects of seismic activity | |
| BEE | Black Economic Empowerment. BEE seeks to ensure that black persons within South Africa gain a significant degree of control in the economy through the possession of equity stakes and the holding of management positions within an institution | |
| Blasthole | The hole into which a blasting charge is inserted in order to blast loose a quantity of rock | |
| Borehole or drill hole | Hole bored or drilled in rock, usually to obtain representative samples (see diamond drill) | |
| Box-hole | A cross raise, normally from the access cross-cut to the reef horizon, for the purpose of drawing broken rock and ore from the reef horizon into a conveyance in the cross-cut | |
| Bulk mining | Any large-scale, mechanised method of mining involving many thousands of tonnes of ore being blasted or caved and transported to a processing plant | |
| BVQI | Bureau Veritas Qualite International is a leading global and independent certification body that audits and certifies whether company systems meet the requirements of ISO standards | |
| Carbon-in-leach (“CIL”) | The recovery process in which gold is leached from gold ore pulp by cyanide and simultaneously adsorbed onto activated carbon granules in the same vessel. The loaded carbon is then separated from the pulp for subsequent gold removal by elution. The process is typically employed where there is a naturally occurring gold adsorbent in the ore | |
| Capital expenditure (or capex) |
Specific project or ongoing expenditure for replacement or additional equipment, materials or infrastructure | |
| Carbon-in-pulp (“CIP”) | The recovery process in which gold is first leached from gold ore pulp by cyanide and then adsorbed onto activated carbon granules in separate vessels. The loaded carbon is then separated from the pulp for subsequent gold removal by elution | |
| Channel | Historic water course into which sediments consisting of gravel and sand are/have been deposited | |
| Collective Bargaining Agreement | Collective Bargaining Agreement means a written agreement concerning terms and conditions of employment or any other matter of mutual interest concluded by a trade union(s) and the Company | |
| Comminution | The term used to describe the process by which ore is reduced in size in order to liberate the desired mineral from the gangue material in preparation for further processing | |
| Co-morbidity | Medical term for diseases that commonly co-exist, which increase the risk of morbidity Concentrate |
|
| Concentrate | A metal-rich product resulting from a mineral enrichment process such as gravity concentration or flotation, in which most of the desired mineral has been separated from the waste material in the ore | |
| Conglomerate | Sedimentary rocks comprising eroded subangular to rounded pebbles within a finer-grained matrix | |
| Cross-cut | A horizontal underground drive developed perpendicular to the strike direction of the stratigraphy and reef | |
| Cut-off grade | The lowest grade of mineralised ore, which determines whether or not it is economic to mine and send to the processing plant | |
| Decline | An excavation from surface or subsurface, in the form of a tunnel, which is developed downwards | |
| Depletion | The decrease in quantity of ore, in a deposit or property resulting from extraction or mining | |
| Development | Is any tunnelling operation that is developed for either exploration, exploitation or both | |
| Diamond drill | A rotary type of rock drill that cuts a core of rock by diamond bits and is recovered in long cylindrical sections | |
| Dilution | Waste or material below the cut-off grade that contaminates the ore during the course of mining operations and thereby reduces the average grade mined | |
| Dip | Angle of inclination (of a geological feature/rock) from the horizontal | |
| Dyke | Tabular, vertical or near vertical body of igneous rock formed by the intrusion of magma generally into planar structural zones of weakness | |
| Elution | The chemical process of desorbing gold from activated carbon | |
| Facies | The characteristics of a rock unit defined by its composition, lithology, physical properties and geochemical parameters, usually reflecting the conditions of its origin | |
| Fatality rate | Number of deaths normally expressed as a ratio per million man-hours worked | |
| Fault | The surface or plane of a fracture along which movement has occurred | |
| Feasibility study | A comprehensive design and costing study of the selected option for the development of a mineral project in which appropriate assessments have been made of realistically assumed geological, mining, metallurgical, economic, marketing, legal, environmental, social, governmental, engineering, operational and all other modifying factors, which are considered in sufficient detail to demonstrate at the time of reporting that extraction is reasonably justified (economically mineable) and the factors reasonably serve as the basis for a final decision by a proponent or financial institution to proceed with, or finance, the development of the project. The overall confidence of the study should be stated | |
| Filtration | Process of separating usually valuable solid material from a liquid | |
| Flotation | The process by which the surface chemistry of the desired mineral particles is chemically modified such that they preferentially attach themselves to bubbles and float to the surface of the pulp in specially designed vessels. The gangue or waste minerals are chemically depressed and do not float, thus allowing the valuable minerals to be concentrated and separated from the undesired material | |
| Footwall | The underlying side of an ore body or stope | |
| Free cash flow margin | The free cash flow (“FCF”) margin is revenue less cash outflow divided by revenue expressed as a percentage | |
| Gold equivalent | A quantity of metal (such as copper) converted to an amount of gold in ounces, based on accepted gold and other metal prices, ie the accepted total value of the metal based on its weight and value thereof divided by the accepted value of one troy ounce of gold | |
| Grade | The quantity of gold or other metal contained within a unit weight of one metric tonne, generally expressed in grams per metric tonne (“g/t”) or percent metal per metric tonne (%) | |
| Hanging wall | The overlying side of an ore body or slope | |
| Haulage | A horizontal underground excavation which is used to transport mined ore | |
| Head grade | The grade of the material delivered to the processing facility (such as heap leach pad, mill, etc.) The Mineral Reserve declaration is for material as delivered to the processing facility | |
| Hedging | Taking a buy or sell position in futures market opposite to a position held in the cash/spot market to minimise the risk of financial loss from an adverse price change | |
| Hydrothermal | Process of injection of hot, aqueous, generally mineral-rich solutions into existing rocks or geological features | |
| ICVCT | Informed Consented Voluntary Counselling and Testing | |
| Indicated Mineral Resources | That part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed | |
| Inferred Mineral Resource | That part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill-holes which may be limited or of uncertain quality and reliability | |
| ISO 14000 | International standards for organisations to implement sound environmental management systems | |
| Lock-up gold | Gold trapped as a temporary inventory within a processing plant, or sections thereof, typically milling circuits | |
| LTIFR | Lost-Time Injury Frequency Rate, expressed in million man-hours worked | |
| Measured Mineral Resource |
That part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are spaced closely enough to confirm geological and grade continuity | |
| Milling | A general term used to describe the process in which the ore is crushed and ground and subjected to physical or chemical treatment to extract the valuable metals to a concentrate or finished product | |
| Mine Health and Safety Act (“MHSA”) |
The South African Mine Health and Safety Act, No 29 of 1996 | |
| Mineralised | Rock in which minerals have been introduced | |
| Mineral Reserve | A '‘Mineral Reserve’' is the economically mineable material derived from a Measured or Indicated Mineral Resource or both. It includes diluting and contaminating materials and allows for losses that are expected to occur when the material is mined. Appropriate assessments to a minimum of a pre-feasibility study for a project and a life-of-mine plan for an operation must have been completed, including consideration of, and modification by, realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors (the modifying factors). Such modifying factors must be disclosed | |
| Mineral Resource | A ‘Mineral Resource’ is a concentration or occurrence of material of economic interest in or on the earth’s crust in such form, quality and quantity that there are reasonable and realistic prospects for eventual economic extraction. The location, quantity, grade, continuity and other geological characteristics of a Mineral Resource are known, or estimated from specific geological evidence, sampling and knowledge interpreted from an appropriately constrained and portrayed geological model. Mineral Resources are subdivided, and must be so reported, in order of increasing confidence in respect of geoscientific evidence, into Inferred, Indicated or Measured categories | |
| Mining Face | The end of a development end, drift, cross-cut or stope at which work is taking place | |
| Net cash flow | Cash flow from operating activities less net capital expenditure and environmental payments | |
| Normal fault | Fault in which the hanging wall moves downward relative to the footwall, under extensional tectonic conditions | |
| Nugget effect | A measure of the randomness of the grade distribution within a mineralised zone | |
| NUM | National Union of Mine Workers | |
| OHSAS | Management system standards, developed in order to facilitate the integration of quality and occupational health and safety management systems by organisations | |
| Payshoot | Linear to sublinear zone within a reef for which gold grades or accumulations are predominantly above the cut-off grade | |
| Pillar | Rock left behind to help support the excavations in an underground mine | |
| Probable Mineral Reserve | The economically mineable material derived from a Measured and/or Indicated Mineral Resource. It is estimated with a lower level of confidence than a Proved Mineral Reserve. It is inclusive of diluting materials and allows for losses that may occur when the material is mined. Appropriate assessments, to a minimum of a pre-feasibility study for a project, have been carried out, including consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction is reasonably justified |
|
| Project capital | Capital expenditure that is associated with specific projects | |
| Proved Mineral Reserve | The economically mineable material derived from a Measured Mineral Resource. It is estimated with a high level of confidence. It is inclusive of diluting materials and allows for losses that may occur when the material is mined. Appropriate assessments, to a minimum of a pre-feasibility study for a project, have been carried out, including consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction is reasonably justified | |
| Reef | A general term for metalliferous mineral deposit (gold) within a geological zone or unit | |
| Remuneration Report | The term Executive Directors refers to the CEO and the CFO, who are members of the Board of Gold Fields Limited The term Executive Committee or Executives refers to the Gold Fields Limited Executive Committee, which for purposes of King IV™ is the executive management of the Company. The Executive Committee is made up of the CEO, CFO, the Corporate Executive Vice Presidents (“EVPs”) and the Regional EVPs Corporate EVPs refers to those members of the Executive Committee who are based at the Corporate Office of the Company based in Sandton, Johannesburg, South Africa Regional EVPs are those members of the Executive Committee who are heads of their respective regions, namely South Africa, West Africa, Americas and Australia LTIP – Long-Term Incentive Plan LTI – Long-Term Incentive MSR – Minimum Shareholding Requirements STI – Short Term Incentive Plan RemCo – Remuneration Committee BSC – Balance Scorecard GRP – Gross Remuneration Package BRP – Base Rate of Pay MSR – Minimum Shareholding Requirement RexCo – Regional Executive Committee EVP – Executive Vice President ROE – Rate of exchange CEO – Chief Executive Officer CFO – Chief Financial Officer TSR – Absolute and Relative Total Shareholder Return FCFM – Free Cash-Flow Margin ExCo – Executive Committee NED – Non-Executive Director |
|
| SADC | Southern African Development Community | |
| SAMREC Code | The South African code for the Reporting of Exploration results, Mineral Resources and Mineral Reserves (the SAMREC Code) 2016 Edition | |
| Seismic | Earthquake or earth vibration including those artificially induced by mining operations | |
| Shaft | An opening cut downwards from the surface for transporting personnel, equipment, supplies, ore and waste | |
| Shear | A deformation resulting from stresses that cause contiguous parts of a body of rock to slide relative to each other in a direction parallel to their plane of contact | |
| Stope | The working area from which ore is extracted in an underground mine | |
| Stripping | The process of removing overburden or waste rock to expose ore | |
| Stripping ratio | The ratio of waste tonnes to ore tonnes mined, calculated as total tonnes mined less ore tonnes mined, divided by ore tonnes mined | |
| Stratigraphy | The science of rock strata, including arrangement according to geographical location lithological composition, geophysical and geochemical and chronological order of sequence | |
| Strike | Direction or trend of geological structures such as bedding or fault planes defined by the intersection with the horizontal plane and is always perpendicular to the dip direction | |
| Subvertical shaft | An opening cut below the surface downwards from an established surface shaft | |
| Surface sources | Ore sources, usually dumps, tailings dams and stockpiles, located at the surface | |
| TEBA | The Employment Bureau of Africa | |
| Tertiary shaft | An opening cut below the surface downwards from an established subvertical shaft | |
| Trade union | An association of employees whose principal purpose is to regulate relations between employees and the Company, which has been registered; whose officials have been elected to represent the interests of employees within the workplace; and which is recognised for collective bargaining by the Company | |
| Abbreviations and units | ||
| ABET | Adult Basic Education and Training | |
| ADS | American Depository Shares | |
| AIDS | Acquired Immune Deficiency Syndrome | |
| ARC | Assessment and Rehabilitation Centres | |
| ART | Antiretroviral therapy | |
| A$ | Australian Dollar | |
| CBO | Community-based organisation | |
| CIL | Carbon-in-leach | |
| CIP | Carbon-in-pulp | |
| CIS | Carbon-in-solution | |
| DCF | Discounted cash flow | |
| ETF | Exchange-traded fund | |
| GFHS | Gold Fields Health Service | |
| GFLC | Gold Fields La Cima | |
| GRI | Global Reporting Initiative | |
| HBC | Home-based care | |
| HDSA | Historically disadvantaged South African | |
| HIV | Human immunodeficiency virus | |
| LoM plan | Life-of-mine plan | |
| LTIFR | Lost-Time Injury Frequency Rate, quoted in million man-hours | |
| MCF | Mine Call Factor | |
| NGO | Non-governmental organisation | |
| NUM | National Union of Mineworkers | |
| NYSE | New York Stock Exchange | |
| OHC | Occupational Health Centre | |
| OT | Occupational therapy | |
| PHC | Primary health clinic | |
| PPI | Producer price index | |
| SAMREC | South African code for Reporting of Exploration Results, Mineral Resources and Mineral Reserves | |
| SEC | United States Securities Exchange Commission | |
| STI | Sexually transmitted infection | |
| TB | Tuberculosis | |
| TEC | Total employees costed | |
| UASA | United Association of South Africa (a labour organisation) | |
| VCT | Voluntary counselling and testing (for HIV) | |
| cm | centimetre | |
| cm.g/t | gold accumulation | |
| g | gram | |
| g/t | grams per metric tonne – gold or silver grade | |
| ha | hectare | |
| kg | kilogram | |
| km | kilometre | |
| koz | thousand ounces | |
| kt | thousand metric tonnes | |
| ktpa | thousand metric tonnes per annum | |
| ktpm | thousand metric tonnes per month | |
| m2 | square metre | |
| Moz | million ounces | |
| oz | fine troy ounce equalling 31.10348 grams | |
| R | South African Rand | |
| R/kg | South African Rand per kilogram | |
| Rm | million South African Rand | |
| R/t | South African Rand per metric tonne | |
| t | metric tonne | |
| US$ | United States Dollar | |
| US$m | million United States Dollar | |
| US$/oz | United States Dollar per ounce |