Integrated Annual Review 2012 Annual Financial Report 2012 Mineral Resources and Mineral Reserves Regional overview  

2.1.1 Company performance

Last year offered one of the most difficult production environments confronted by the mining industry in South Africa, including Gold Fields. The aggregate decline of 30% in output experienced by Beatrix and KDC in the fourth quarter – amid a wave of illegal, nationwide strikes by mineworkers – was largely responsible for the company’s reduced annual attributable production of 3.25 million ounces, as well as a slight decline in earnings. It masked what was otherwise a strong second-half of the year in terms of the production and cost performance of our operations outside of South Africa, with strong margins achieved at our Agnew and Cerra Corona mines in particular.

I would also like to single out some significant achievements at South Deep. First, the mine completed – within budget and on time – the installation of the fixed infrastructure required to support the build-up to full production of 700,000 ounces a year by 2016. Secondly, Gold Fields signed a landmark agreement with its trade unions to launch a new ‘24/7/365’ operating model, in line with best practice mechanised underground operations across the world.