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

1.6 Financial overview

Summarised financial statements

The summary of the financial statements following below comprises the consolidated income statement, statements of financial position and cash flow for the year to 31 December 2012 compared with the year to 31 December 2011. These statements represent the summarised financial performance of the Gold Fields Group for 2012, including those from the mines which were unbundled into Sibanye Gold post the 2012 year-end.

In our 2012 Annual Financial Report, which is contained on the CD attached to this Integrated Annual Review, as well as on our website (www.goldfields.co.za), full details of the results are provided including the separation out into continuing operations (international operations and South Deep – the new Gold Fields) and discontinued operations (Sibanye Gold).

Some of the highlights from the consolidated statements include:

  • Group attributable production decreased by 7% from 3.49 million ounces in 2011 to 3.25 million ounces for 2012. The continuing operations reported almost unchanged production of 2.03 million ounces (2011: 2.04 million ounces), while production at discontinued operations fell from 1.46 million ounces to 1.21 million ounces, largely as a result of the illegal strikes at KDC and Beatrix
  • Group revenue (continued and discontinued operation) improved from R41.88 billion in 2011 to R45.47 billion in 2012, but in US dollar terms declined from US$5.80 billion in 2011 to US$5.55 billion in 2012. Revenue from continuing operations in 2012 increased by 14% to R28.92 billion (US$3.53 billion), while revenue at the discontinued operations was virtually unchanged at R16.55 billion
  • Net operating costs for the Group (continued and discontinued operation) increased from R20.77 billion (US$2.88 billion) in 2011 to R24.49 billion (US$2.99 billion) in 2012. Net operating costs for continuing operations increased by 25% from R10.90 billion (US$1.51 billion) to R13.62 billion (US$1.66 billion) in 2012, although half of this increase was attributable to the exchange rate effect of the weaker rand. At the discontinued operations costs rose by 10% to R10.87 billion (US$1.33 billion)
  • Total cash costs for continuing operations increased from R161,548/kg (US$696/oz) in 2011 to R206,531/kg (US$784/oz) in 2012 due to the drop in gold sales and increase in operating costs. At the discontinued operations they increased by 30% to R285,851 (US$1,086/oz)
  • The Notional Cash Expediture (NCE) margin for the Group (continued and discontinued operation) declined from 25% in 2011 to 17% in 2012 comprising decreases in the margin for continuing operations to 18% (2011: 27%) and discontinued operations to 16% (2011: 23%)
  • Group profit attributable to owners of the Company (continued and discontinued operations) decreased by 19% from R7.03 billion (or 973 SA cents per share) for 2011 to R5.66 billion (or 778 SA cents per share) for 2012. In US dollar terms the decrease for the Group was from US$973 million in 2011 to US$691 million in 2012
  • Normalised earnings for the Group (continued and discontinued operations) declined from R7.24 billion (US$1,00 billion) in 2011 to R6.83 billion (US$834 million) in 2012. At the continuing operations normalised earnings amounted to R3.67 billion (US$448 million) in 2012 compared with earnings of R4.59 billion (US$636 million) in 2011, while at the discontinued operations they fell to R2.32 billion (US$283 million) from R2.73 billion (US$378 million)
  • Group cash flow (continued and discontinued operation) from operating activities declined from R14.21 billion (US$1.97 billion) in 2011 to R8.86 billion (US$1.08 billion) in 2012 due to lower profitability, higher royalty and tax payments as well as an increase in working capital
  • Total Group capital expenditure (continued and discontinued operation) rose from R9.99 billion (US$1.38 billion) in 2011 to R13.06 billion (US$1.59 billion) in 2012. At the discontinued operations it rose from R2.91 billion (US$403 million) in 2011 to R3.07 billion (US$375 million) in 2012, while at continuing operations it rose from R7.29 billion (US$1.01 billion) to R9.95 billion (US$1.21 billion) over the same period. At South Deep capital expenditure increased from R1.98 billion (US$274 million) to R2.58 billion (US$315 million)
  • Net debt for continuing operations increased from R9.46 billion (US$1.16 billion) at the end of 2011 to R10.82 billion (US$1.26 billion) at the end of 2012. Net debt for discontinued operations amounted to R3.80 billion (US$443 million) at the end of 2012

Consolidated income statement

For the year ended 31 December 2012

Figures in millions unless otherwise stated

UNITED STATES DOLLAR       SOUTH AFRICAN RAND  
2011   2012       2012   2011  
          CONTINUING OPERATIONS        
3,499.1   3,530.6     Revenue 28,915.8   25,263.7  
(1,978.0)   (2,162.8)     Cost of sales (17,713.9)   (14,281.2)  
1,521.1   1,367.8     Net operating profit 11,201.9   10,982.5  
11.7   16.3     Investment income 133.9   84.7  
(57.8)   (55.3)     Finance expense (452.8)   (417.3)  
4.2   (0.5)     (Loss)/gain on financial instruments (4.5)   30.3  
9.1   (13.8)     (Loss)/gain on foreign exchange (112.7)   65.8  
(27.0)   (15.6)     Other costs (126.7)   (195.7)  
(33.4)   (45.5)     Share-based payments (372.5)   (241.3)  
(115.2)   (128.5)     Exploration expense (1,052.7)   (832.1)  
(17.4)   (44.1)     Feasibility and evaluation costs (361.2)   (125.6)  
(0.8)   (49.7)     Share of results of associates after taxation (407.4)   (5.9)  
(24.0)   (50.8)     Restructuring costs (416.3)   (173.1)  
(10.0)   (98.2)     Impairment of investments and assets (803.9)   (71.9)  
12.8   27.6     Profit on disposal of investments 225.9   92.6  
(1.0)   0.3     Profit/(loss) on disposal of property, plant and equipment 2.1   (7.1)  
1,272.3   910.0     Profit before royalties and taxation 7,453.1   9,185.9  
(109.6)   (116.7)     Royalties (955.9)   (791.5)  
1,162.7   793.3     Profit before taxation 6,497.2   8,394.4  
(429.5)   (454.0)     Mining and income tax (3,718.2)   (3,100.6)  
733.2   339.3     Profit from continuing operations 2,779.0   5,293.8  
          DISCONTINUED OPERATIONS        
348.0   384.9     Profit from discontinued operations, net of tax 3,152.1   2,512.5  
1,081.2   724.2     Profit for the year 5,931.1   7,806.3  
          Profit attributable to:        
973.2   690.9     Owners of the parent 5,658.1   7,026.7  
625.1   306.1     – Continuing operations 2,506.6   4,513.3  
348.1   384.8     – Discontinued operations 3,151.5   2,513.4  
108.0   33.3     Non-controlling interest holders 273.0   779.6  
108.1   33.2     – Continuing operations 272.4   780.5  
(0.1)   0.1     – Discontinued operations 0.6   (0.9)  
                   
1,081.2   724.2       5,931.1   7,806.3  
          Earnings per share attributable to ordinary shareholders of the Company:        
87   42     Basic earnings per share from continuing operations – cents 345   625  
48   53     Basic earnings per share from discontinued operations – cents 433   348  
86   42     Diluted basis earnings per share from continuing operations – cents 343   618  
47   53     Diluted basis earnings per share from discontinued operations – cents 431   344  

Exchange rate: R8.19/US$ (2011: R7.22/US$).


Consolidated statement of financial position

At 31 December 2012 (pre-unbundling) 

Figures in millions unless otherwise stated  

UNITED STATES DOLLAR       SOUTH AFRICAN RAND  
2011   2012       2012   2011  
          ASSETS        
8,635.4   7,215.2     Non-current assets 61,832.7   70,206.0  
7,710.1   6,276.5     Property, plant and equipment 53,789.1   62,682.8  
548.5   520.3     Goodwill 4,458.9   4,458.9  
  96.3     Heap leach inventories 825.3    
18.4   232.1     Investment in associates 1,988.9   149.6  
82.5   38.4     Investments 329.2   671.0  
161.5   10.0     Environmental trust funds 85.3   1,313.3  
114.4   41.6     Deferred taxation 356.0   930.4  
1,731.3   3,875.5     Current assets 33,212.9   14,076.0  
471.1   427.8     Inventories 3,666.4   3,830.1  
365.1   450.5     Trade and other receivables 3,861.0   2,968.5  
32.9   2.0     Deferred stripping costs 16.7   267.4  
118.2   7.0     Financial instruments 60.0   961.0  
744.0   606.3     Cash and cash equivalents 5,195.6   6,049.0  
  2,381.9     Assets held for distribution 20,413.2    
                   
10,366.7   11,090.7     Total assets 95,045.6   84,282.0  
          EQUITY AND LIABILITIES        
5,767.1   5,992.3     Equity attributable to owners of the parent 51,353.5   46,886.9  
55.5   55.9     Share capital 364.8   361.9  
4,542.4   4,544.0     Share premium 31,177.5   31,164.4  
(605.5)   (700.7)     Other reserves 3,773.2   2,065.5  
1,774.7   2,093.1     Retained earnings 16,038.0   13,295.1  
144.5   210.5     Non-controlling interest 1,803.9   1,174.6  
5,911.6   6,202.8     Total equity 53,157.4   48,061.5  
2,971.3   2,687.3     Non-current liabilities 23,029.9   24,156.9  
1,202.6   595.8     Deferred taxation 5,106.4   9,777.5  
1,360.7   1,828.8     Borrowings 15,672.9   11,062.3  
408.0   262.7     Provisions 2,250.6   3,317.1  
1,483.8   2,200.6     Current liabilities 18,858.3   12,063.6  
672.4   538.4     Trade and other payables 4,614.4   5,467.4  
264.4   180.9     Taxation and royalties 1,549.7   2,149.1  
547.0   40.0     Current portion of borrowings 342.8   4,447.1  
  1,441.3     Liabilities held for distribution 12,351.4    
                   
10,366.7   11,090.7     Total equity and liabilities 95,045.6   84,282.0  

Exchange rate: R8.57/US$ (2011: R8.13/US$)


Consolidated statement of cash flows

For the year ended 31 December 2012 

Figures in millions unless otherwise stated

UNITED STATES DOLLAR       SOUTH AFRICAN RAND  
2011   2012       2012   2011  
1,947.9   1,065.6     Cash flows from operating activities 8,864.2   14,213.3  
1,827.1   1,583.6     Cash generated by operations 12,969.6   13,191.9  
10.7   15.8     Interest received 129.8   77.6  
0.5       Dividends received 0.4   3.4  
(0.1)       Post-retirement healthcare payments   (0.9)  
(50.2)   (120.0)     Change in working capital (983.2)   (362.4)  
1,788.0   1,479.4     Cash generated by operating activities 12,116.6   12,909.6  
(60.9)   (68.6)     Interest paid (561.9)   (439.7)  
(97.2)   (112.4)     Royalties paid (922.5)   (701.6)  
(299.3)   (334.1)     Taxation paid (2,742.4)   (2,148.6)  
1,330.6   964.3     Net cash from operations 7,889.8   9,619.7  
(219.8)   (378.2)     Dividends paid (2,963.0)   (1,552.0)  
(174.9)   (364.2)     – Ordinary shareholders (2,846.3)   (1,229.4)  
(41.9)   (11.5)     – Non-controlling interests holders (96.7)   (301.2)  
(3.0)   (2.5)     – South Deep BEE dividend (20.0)   (21.4)  
1,110.8   586.1     Cash generated by continuing operations 4,926.8   8,067.7  
837.1   479.5     Cash generated by discontinued operations 3,937.4   6,145.6  
(2,539.1)   (1,680.2)     Cash flows from investing activities (13,705.3)   (17,956.7)  
(1,008.4)   (1,240.1)     Additions to property, plant and equipment (10,156.3)   (7,280.6)  
3.1   1.3     Proceeds on diAsposal of property, plant and equipment 10.6   22.7  
(382.3)   (0.8)     La Cima non-controlling interest buy-out (7.3)   (2,612.5)  
(667.0)       Ghana non-controlling interest buy-out   (4,519.7)  
(6.3)       South Deep non-controlling interest buy-out   (50.7)  
  (10.0)     Talas non-controlling interest buy-out (83.1)    
(66.0)   (110.0)     Payment for FSE (833.8)   (534.6)  
(7.0)       Payment for Bezant   (55.4)  
(0.1)   (0.8)     Purchase of investments (6.5)   (0.7)  
13.7   65.4     Proceeds on disposal of investments 525.6   98.9  
(2.7)   (3.4)     Environmental trust funds and rehabilitation payments (27.4)   (19.2)  
(2,123.0)   (1,298.4)     Cash utilised in continuing operations (10,578.2)   (14,951.8)  
(416.1)   (381.8)     Cash utilised in discontinued operations (3,127.1)   (3,004.9)  
550.8   504.8     Cash flows from financing activities 4,072.1   3,663.0  
31.0   27.7     Loans received from non-controlling interest holders 229.6   225.4  
1,111.2   936.3     Loans raised 7,351.9   7,786.1  
(597.9)   (975.9)     Loans repaid (7,745.4)   (4,395.6)  
6.5   2.0     Proceeds from the issue of shares 16.0   47.1  
550.8   (9.9)     Cash (utilised in)/generated by continuing operations (147.9)   3,663.0  
  514.7     Cash generated by discontinued operations 4,220.0    
                   
(40.4)   (109.8)     Net cash utilised (769.0)   (80.4)  
(25.1)   21.4     Effect of exchange rate fluctuation on cash held 338.5   665.6  
809.5   744.0     Cash and cash equivalents at beginning of the year 6,049.0   5,463.8  
744.0   655.6     Cash and cash equivalents at end of the year 5,618.5   6,049