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Currently viewing: Quarter ended 30 June 2015 compared with quarter ended 30 June 2014 / Next: Corporate |
Quarter ended 30 June 2015 compared with quarter ended 30 June 2014Group attributable equivalent gold production decreased by 2 per cent from 548,000 ounces for the June 2014 quarter to 535,000 ounces for the June 2015 quarter mainly due to lower production at all the operations except Tarkwa, Damang, Cerro Corona and St Ives. At the South Africa region, gold production at South Deep, decreased by 24 per cent from 1,591 kilograms (51,100 ounces) in the June 2014 quarter to 1,203 kilograms (38,700 ounces) in the June 2015 quarter mainly due to the extensive ground support remediation programme introduced in May 2014 and the commensurate effect thereof which is expected to affect production throughout 2015. At the West Africa region, total managed gold production increased by 9 per cent from 181,300 ounces in the June 2014 quarter to 197,700 ounces in the June 2015 quarter. At Tarkwa, gold production increased by 11 per cent from 140,700 ounces to 156,200 ounces mainly due to increased volumes and higher grade. At Damang, gold production increased by 2 per cent from 40,500 ounces to 41,500 ounces mainly due to higher tonnes processed, partially offset by lower grade. At the South America region, gold equivalent production at Cerro Corona increased by 9 per cent from 76,800 ounces in the June 2014 quarter to 83,600 ounces in the June 2015 quarter mainly due to an increase in gold and copper grades. At the Australia region, gold production decreased by 9 per cent from 256,900 ounces in the June 2014 quarter to 235,000 ounces in the June 2015 quarter. At St Ives, gold production increased by 7 per cent from 83,400 ounces to 89,200 ounces, mainly due to higher grade mined. At Agnew/Lawlers, gold production decreased by 18 per cent from 66,000 ounces to 53,800 ounces mainly due to lower grade, partially offset by an increase in ore mined. At Darlot, gold production decreased by 24 per cent from 22,900 ounces to 17,400 ounces due to a decrease in tonnes mined and processed as well as lower grade. At Granny Smith, gold production decreased by 12 per cent from 84,600 ounces to 74,600 ounces mainly due to lower volumes and lower grade. INCOME STATEMENT Revenue decreased by 12 per cent from US$747 million in the June 2014 quarter to US$660 million in the June 2015 quarter due to the lower gold sold and the lower gold price received. The average gold price decreased by 8 per cent from US$1,275 per ounce to US$1,174 per ounce. The average Rand/US dollar exchange rate weakened by 15 per cent from R10.53 in the June 2014 quarter to R12.06 in the June 2015 quarter. The average Australian/US dollar exchange rate weakened by 16 per cent from A$1.00 = US$0.93 to A$1.00 = US$0.78. Net operating costs decreased from US$436 million to US$382 million. This was due to the lower production, the 15 per cent weaker Rand/US dollar exchange rate, the 16 per cent weaker Australian/US dollar exchange rate, the lower oil price and good cost control. At South Deep in South Africa, net operating costs increased by 3 per cent from R687 million (US$65 million) in the June 2014 quarter to R705 million (US$59 million) in the June 2015 quarter. This was mainly due to annual wage increases and normal inflationary increases. All-in sustaining costs of R734,784 per kilogram (US$1,895 per ounce) and total all-in cost of R769,847 per kilogram (US$1,986 per ounce) in the June 2015 quarter compared with all-in sustaining costs of R505,974 per kilogram (US$1,495 per ounce) and total all-in cost of R570,575 per kilogram (US$1,685 per ounce) in the June 2014 quarter due to lower gold sold and higher operating costs. At the West Africa region, net operating costs increased marginally from US$134 million in the June 2014 quarter to US$136 million in the June 2015 quarter. All-in sustaining costs and total all-in cost for the region amounted to US$1,029 per ounce in the June 2015 quarter compared with US$1,084 per ounce in the June 2014 quarter. At Tarkwa, net operating costs decreased by 3 per cent from US$90 million to US$87 million due to on-going business improvement initiatives. All-in sustaining costs and total all-in costs amounted to US$938 per ounce in the June 2015 quarter compared with US$1,026 per ounce in the June 2014 quarter due to increased gold sold and lower operating costs. At Damang, net operating costs increased by 14 per cent from US$44 million to US$50 million due to increased tonnes mined and processed as well as higher fuel costs resulting from the use of Gensets due to power load shedding. All-in sustaining costs and total all-in cost amounted to US$1,370 per ounce in the June 2015 quarter compared with US$1,282 per ounce in the June 2014 quarter due to higher net operating costs. At Cerro Corona in South America, net operating costs decreased by 16 per cent from US$51 million in the June 2014 quarter to US$43 million in the June 2015 quarter. This was mainly due to a drawdown of concentrate inventory of US$11 million in the June 2014 quarter compared with US$5 million in the June 2015 quarter. All-in sustaining costs and total all-in cost amounted to US$381 per ounce in the June 2015 quarter compared with US$307 per ounce in the June 2014 quarter due to lower by-product credits, partially offset by lower capital expenditure and higher gold ounces sold. All-in sustaining costs and total all-in cost, on a gold equivalent basis amounted to US$662 per ounce in the June 2015 quarter compared with US$789 per ounce in the June 2014 quarter due to lower capital expenditure. At the Australia region, net operating costs decreased by 7 per cent from A$199 million (US$185 million) in the June 2014 quarter to A$186 million (US$145 million) in the June 2015 quarter. All-in sustaining costs and total all-in cost for the region amounted to A$1,288 per ounce (US$1,008 per ounce) in the June 2015 quarter compared with A$1,118 per ounce (US$1,042 per ounce) in the June 2014 quarter. At St Ives, net operating costs decreased by 3 per cent from A$80 million (US$75 million) in the June 2014 quarter to A$78 million (US$61 million) in the June 2015 quarter. All-in sustaining costs and total all-in cost for St Ives amounted to A$1,454 per ounce (US$1,136 per ounce) in the June 2015 quarter compared with A$1,472 per ounce (US$1,372 per ounce) in the June 2014 quarter due to lower net operating costs and higher gold sold, partially offset by higher capital expenditure. At Agnew/Lawlers, net operating costs decreased by 2 per cent from A$47 million (US$43 million) in the June 2014 quarter to A$46 million (US$36 million) in the June 2015 quarter. All-in sustaining costs and total all-in cost for Agnew/Lawlers amounted to A$1,357 per ounce (US$1,077 per ounce) in the June 2015 quarter compared with A$1,083 per ounce (US$1,010 per ounce) in the June 2014 quarter, due to lower gold sold. At Darlot net operating costs decreased by 26 per cent from A$23 million (US$22 million) in the June 2014 quarter to A$17 million (US$13 million) in the June 2015 quarter. All-in sustaining costs and total all-in cost amounted to A$1,500 per ounce (US$1,164 per ounce) in the June 2015 quarter compared with A$1,316 per ounce (US$1,228 per ounce) in the June 2014 quarter due to lower gold sold. At Granny Smith, net operating costs decreased by 4 per cent from A$48 million (US$45 million) in the June 2014 quarter to A$46 million (US$36 million) in the June 2015 quarter. All-in sustaining costs and total all-in cost amounted to A$989 per ounce (US$770 per ounce) in the June 2015 quarter compared with A$742 per ounce (US$692 per ounce) in the June 2014 quarter due to lower gold sold and higher capital expenditure. The Group all-in sustaining costs of US$1,029 per ounce and total all-in cost of US$1,059 per ounce in the June 2015 quarter compared with all-in sustaining costs of US$1,050 per ounce and total all-in cost of US$1,093 per ounce in the June 2014 quarter. The lower all-in- sustaining and all-in costs in the June 2015 quarter was due to lower net operating costs, partially offset by lower by-product credits, higher capital expenditure and lower gold sold. Operating profit decreased from US$311 million to US$278 million as a result of the above. Amortisation for the Group decreased from US$175 million in the June 2014 quarter to US$142 million in the June 2015 quarter mainly due to lower production and the change in estimate in the depreciation calculation at the Australian operations, which was implemented in the second half of 2014. Net interest paid decreased from US$19 million to US$15 million due to the paying down of relatively more expensive South African debt as compared with offshore debt in the March 2015 quarter. The share of equity accounted losses after taxation was similar at US$1 million and mainly related to the ongoing study and evaluation costs at the Far Southeast project (FSE). The loss on foreign exchange of US$2 million in the June 2015 quarter compared with a gain of US$1 in the June 2014 quarter. These related to the conversion of offshore cash holdings into their functional currencies. The gain on financial instruments of US$2 million in the June 2015 quarter compared with US$nil million in the June 2014 quarter and related to the mark to market adjustment on diesel hedges that the Australian operations entered into on 10 September and 26 November 2014. Share-based payments for the Group decreased from US$5 million in the June 2014 quarter to US$3 million in the June 2015 quarter due to the implementation of a new long-term employee incentive scheme in 2014. Long-term employee benefits of US$nil million in the June 2015 quarter compared with US$4 million in the June 2014 quarter, the reduction due to mark to market adjustments. Together the two schemes decreased from US$9 million to US$3 million. Exploration expenditure increased from US$15 million in the June 2014 quarter to US$19 million in the June 2015 quarter due to higher expenditure at Salares Norte. Royalties of US$21 million in the June 2015 quarter compared with US$22 million in the June 2014 quarter. The taxation charge of US$43 million in the June 2015 quarter compared with US$30 million in the June 2014 quarter, in line with the higher taxable income and as a result of the increased taxation charge of US$6 million due to the weakening of the Peruvian Nuevo Sol in the June 2015 quarter compared with an income of US$3 million due to the strengthening of the Peruvian Nuevo Sol in the June 2014 quarter. As a result of the above, net earnings attributable to the Gold Fields shareholders of US$12 million in the June 2015 quarter compared with net earnings of US$20 million in the June 2014 quarter. Normalised earnings of US$22 million in the June 2015 quarter compared with US$25 million in the June 2014 quarter. CASH FLOW Cash inflow from operating activities of US$191 million in the June 2015 quarter compared with US$220 million in the June 2014 quarter with the decrease mainly due to higher royalties and taxation paid in June 2015. Cash outflows from investing activities increased from US$156 million to US$161 million, mainly due to higher capital expenditure. Capital expenditure increased from US$153 million in the June 2014 quarter to US$158 million in the June 2015 quarter mainly due to increased expenditure on exploration and development at all of the Australian operations, partially offset by lower expenditure at Cerro Corona. At the South Africa region, capital expenditure at South Deep increased from R194 million (US$19 million) to R200 million (US$17 million). At the West Africa region, capital expenditure increased from US$46 million in the June 2014 quarter to US$52 million in the June 2015 quarter mainly due to increased stripping at Tarkwa. In South America, at Cerro Corona, capital expenditure decreased from US$20 million in the June 2014 quarter to USS$12 million in the June 2015 quarter. At the Australia region, capital expenditure increased from A$73 million (US$68 million) to A$99 million (US$77 million). Net cash outflow from financing activities of US$10 million in the June 2015 quarter compared with US$80 million in the June 2014 quarter. Both related to long term and short term loans received and repaid. The net cash inflow of US$16 million in the June 2015 quarter compared with a net cash outflow of US$26 million in the June 2014 quarter. After accounting for a negative translation adjustment of US$3 million, the cash inflow in June 2015 was US$13 million. The cash balance at the end of June 2015 was US$415 million compared with US$351 million at the end of June 2014. |
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