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Introduction

About this report

Forward-looking statements

Certain statements in this document constitute ‘forward-looking statements’ within the meaning of section 27A of the US Securities Act of 1933 and section 21E of the US Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements.

Such risks, uncertainties and other important factors include, among others: economic, business and political conditions in Australia, Ghana, Peru, South Africa and elsewhere; the ability to achieve anticipated efficiencies and other cost savings in connection with past and future acquisitions, exploration and development activities; decreases in the market price of gold and/or copper; hazards associated with underground and surface gold mining; labour disruptions; availability, term and deployment of capital or credit; changes in government regulations, particularly environmental and new legislation affecting mining and mineral rights; changes in exchange rates; currency devaluations; inflation and other macro-economic factors; industrial action; temporary stoppages of mines for safety and unplanned maintenance; and the impact of the HIV/AIDS crisis in
South Africa.

These forward-looking statements speak only as of the date of this document. The Company undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events.

Figure 1: Average exchange rates and commodity prices

  2013   2012   2011  
R/US$ 9.60   8.19   7.22  
US$/A$ 0.97   1.04   1.04  
Gold (US$/oz)1 1,386   1,656   1,555  
Gold (R/kg)1 427,753   435,952   361,049  
Gold (A$/oz) 1,446   1,613   1,541  

1 Continued operations

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Further content online

About this report

Our Integrated Annual Report 2013, which covers the year ended 31 December 2013, is made up of the following three volumes:

The Integrated Annual Review 2013, which examines the integrated nature of our operational, financial and sustainability performance
The Annual Financial Report 2013, which fulfils our statutory financial reporting requirements
The Mineral Resources and Mineral Reserves Supplement 2013, which provides detailed technical and operational information on our mines and growth projects. This will be available in late April.

This Integrated Annual Review provides an overview of Gold Fields eight global operations on a Group and mine-by-mine basis, including the newly acquired Yilgarn South Assets, acquired in October 2013. (Financial and operational figures in this review include the newly acquired Yilgarn South Assets for Q4 2013, non-financial data do not, unless otherwise indicated.) The report also describes our exploration and business development activities. We do this using an integrated approach to reporting that examines our operational, financial and sustainability performance.

The aim of our integrated approach is to enable investors and other stakeholders – including host governments, local communities and our employees – to make a more informed assessment of the value of Gold Fields and its prospects.

We believe the Integrated Annual Review, together with additional documents held online, represents an A+ application of the Global Reporting Initiative (‘GRI’) G3.1 Sustainability Reporting Guidelines, the highest level possible.

Our auditors, KPMG, have provided reasonable assurance on selected sustainability information in this report. As a member of the International Council on Mining & Metals (‘ICMM’) we are committed to obtaining assurance in line with the ICMM Sustainable Development Framework: Assurance Procedure. KPMG has provided assurance on all five subject matters of the ICMM, which include our GRI A+ self-declaration as well as our selected sustainability performance data. The assured data and KPMG’s Assurance opinion are on p158 and ,153 respectively.

This Integrated Annual Review also forms part of our Communication on Progress to the United Nations Global Compact. A summary of our compliance with the GRI 3.1 and the 10 Principles of the United Nations Global Compact – as well as our alignment with related standards including the Millennium Development Goals (‘MDGs’) and the ICMM 10 Principles and its mandatory requirements of the position statements – is presented online.

www.theiirc.org
www.globalreporting.org
www.unglobalcompact.org
  www.un.org
www.icmm.com

Further information

   

The Integrated Annual Report 2013 is made up of the following three volumes, all of which are available on our website:

Integrated Annual Review 2013

Annual Financial Report 2013

Mineral Resources and Mineral Reserves

Supplement 2013 (available late April)

www.goldfields.com

“An integrated report is a concise communication about how an organisation’s strategy, governance, performance and prospects, in the context of its external environment, lead to the creation of value over the short, medium and long term.”

International Integrated Reporting Council, The International Framework

48.6m
Attributable gold Mineral Reserves

113.4m
Attributable gold Mineral Resources

16 to 2
Reduction in fatalities from 2012 – 2013

About Gold Fields

Gold Fields Limited is an unhedged, globally diversified producer of gold with eight operating mines in Australia, Ghana, Peru and South Africa. In February 2013, Gold Fields unbundled its mature underground Beatrix and KDC mines in South Africa into an independent and separately listed company, Sibanye Gold Limited. It also expanded its presence in Australia, acquiring the Darlot, Granny Smith and Lawlers mines (known as the ‘Yilgarn South Assets’) from Barrick Gold.

Gold Fields has attributable annual gold production of approximately 2.02 million ounces, as well as attributable Mineral Reserves of around 49 million ounces and Mineral Resources of around 113 million ounces. Attributable copper Mineral Reserves total 708 million pounds and Mineral Resources 7,120 million pounds. Gold Fields has a primary listing on the JSE Limited, with secondary listings on the New York Stock Exchange (‘NYSE’), NASDAQ Dubai Limited, Euronext in Brussels (‘NYX’) and the Swiss Exchange (‘SWX’)


Gold Fields in numbers

Figure 2: Group operating statistics – continuing operations

Category 2013   2012   2011  
Gold produced – attributable (’000 oz) 2,022   2,031   2,038  
Mineral Reserves – attributable (’000 oz) 48.61   54.85   n/a  
Mineral Resources – attributable (’000 oz) 113.4   125.5   n/a  
Total cash cost (US$/oz) 803   779   696  
Notional cash expenditure (NCE) (US$/oz)1 1,146   1,348   1,140  
All-in Costs (AIC) (US$/oz)2 1,312   1,537   n/a  
Gold price received (US$/oz) 1,386   1,656   1,555  
Operating costs (US$m) 1,679   1,674   1,586  
Operating profit (US$m) 1,239   1,879   1,989  
Operating margin (%) 43   53   57  
NCE margin (%) 17   19   27  

1 NCE is defined as operating costs plus capital expenditure
2 AIC include all cash costs plus costs related to sustaining and growing production of a company, excluding taxes

Figure 3: Group financial statistics – continuing operations

Category 2013   2012   2011  
Revenue (Rm) 27,901   28,916   25,264  
Basic (loss)/earnings – SA cents per share (811)   356   625  
Headline (loss)/earnings – SA cents per share (112)   393   622  
Dividends declared – SA cents per share1 22   235   330  
Total assets (Rm) 75,441   94,890   84,044  
Shareholders’ equity (Rm) 41,828   53,057   47,894  
Cash and cash equivalents (Rm) 3,361   5,196   6,049  
Cash flows from operating activities (Rm) 4,279   4,772   8,068  
Cash utilised (Rm) (2,042)   (5,799)   (3,221)  
EBITDA (Rm) 10,544   13,824   3,207  
EBITDA (US$m) 1,098   1,688   1,829  
Net debt (Rm) 17,941   10,820   9,461  
Net debt (US$m) 1,735   1,263   1,164  
Net debt: EBITDA (Rm) 1.7   0.78   0.72  

1 Excludes dividends in specie

Figure 4: Group sustainability statistics – continuing operations

Category 2013   2012   2011  
National value distribution (US$m) 2,979   4,226   3,688  
Socio-economic development spend (SED) (US$m) 161   181   14  
Total employees2 10,167   9,684   8,115  
Employee wages and benefits (US$m) 417   366   327  
Fatalities 2   0   1  
Lost-Time Injury Frequency Rate (‘LTIFR’)3 2.864   2.365   n/a  
CO2 emissions (’000 tonnes)6 1,235   1,234   1,203  
Environmental incidents (Level 3) 3   6   7  
Electricity consumption (MWh) 1,382,105   1,384,459   1,399,285  
Water withdrawal (ML) 30,3027   23,688   29,040  

1 Our SED definition has been aligned to the World Gold Council definition, which excludes employee-related SED. Including employee-related spending total SED is US$48 million (see pages 122 to 126)
2 Total employees are permanent employees, including head office and Yilgarn Assets (Q4 2013) staff
3 Per million hours worked, including employees and contractors
4 Restricted work cases are now included in our LTIFR across the Group. The Group definition is currently based on not being able to work the next shift, but Gold Fields is considering moving to a calendar day-based definition in 2014 in line with ICMM safety reporting guidelines.
5 Restated to adopt 2013 methodology (see footnote 4)
6 Scope 1 and 2 only
7 The increase in 2013 was primarily due to dewatering of pits at St Ives and increased rainfall in Western Australia

Figure 5: Group currency and share price statistics

Category 2013   2012   2011  
Closing rate US$1 = R 10.34   8.57   8.13  
Ordinary share price – high (R) 96.30   115.10   143.00  
Ordinary share price – low (R) 31.40   84.16   95.60  
Ordinary share price – year-end (R) 32.89   90.95   109.23  
Average daily number of shares traded on JSE (million) 3.5   2.3   2.2  
American Depository Receipts (ADRs) (US$) – high 10.73   14.56   18.55  
American Depository Receipts (ADRs) (US$) – low 3.02   9.74   13.80  
American Depository Receipts (ADRs) (US$) – year-end 3.20   10.75   16.28  
Average daily number of shares traded on NYSE (million) 5.6   4.0   4.0  
Number of shares in issue at year-end (million) 767.2   729.5   723.7  
Market capitalisation at year-end (Rbn) 25.2   75.7   90.2  
Total asset value per share (R) 98.33   129.76   115.17