Q4 F2010


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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 South Africa, Ghana, Australia, Peru 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 terms and deployment of capital or credit; changes in government regulations, particularly environmental regulations; 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 reasons; and the impact of the 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.

Attributable production up 13 per cent to 898,000 ounces

JOHANNESBURG.  5 August 2010, Gold Fields Limited (NYSE & JSE: GFI) today announced net earnings for the June 2010 quarter of R900 million compared with earnings of R316 million and a loss of R293 million in the March 2010 and the June 2009 quarters respectively.  In US dollar terms net earnings for the June 2010 quarter were US$120 million, compared with earnings of US$44 million and a loss of US$29 million for the March 2010 and June 2009 quarters respectively.

June 2010 quarter salient features:

  • New production record for Tarkwa at over 200,000 ounces for the quarter;
  • Total cash cost down 2 per cent from R169,538 per kilogram (US$703 per ounce) to R166,215 per kilogram (US$688 per ounce);
  • Notional cash expenditure down 3 per cent from R241,860 per kilogram (US$1,003 per ounce) to R235,223 per kilogram (US$974 per ounce);
  • NCE margin doubled from 9 per cent to 18 per cent;
  • Net debt down to R4.7 billion (US$620 million) from R6.1 billion (US$829 million).

A final dividend of 70 SA cents per share is payable on 30 August 2010, giving a total dividend for financial 2010 of 120 SA cents per share.

Statement by Nick Holland, Chief Executive Officer of Gold Fields:

“Safe production remains a key priority for the Group and I deeply regret to report three fatal accidents at the South African operations during the quarter. The fatality rate and the serious injury frequency rate reduced year-on-year by 15 per cent and 20 per cent respectively. F2010 has been the best safety year ever, and our focus will now be on behavioural change, with no let-up in our efforts to create a safe working environment.

The financial highlight of the June quarter was Gold Fields’ ability to generate R1.8 billion in cash, in line with our strategic focus on controlling the all-in cost of production, i.e. notional cash expenditure (NCE), and as a consequence increasing free cash flow.

Attributable Group production for the quarter amounted to 898koz, 13 per cent higher than the previous quarter. Production from the South Africa region increased by 23 per cent to 488koz, with significant improvements at all the South African mines. Particularly pleasing was the performance at Tarkwa in West Africa, which increased production by 16 per cent to 200koz for the June quarter, a new record from this mine. St. Ives also had a strong production quarter, reflecting an excellent performance from the underground operations.

In the June quarter South Deep achieved record production levels since becoming a fully mechanised mine. South Deep’s production has increased by 52 per cent year-on-year, achieving annual production of 265koz. South Deep will seek to build on this momentum as it progresses towards full annual production of between 750koz and 800koz by the end of 2014. The South African Department of Mineral Resources has approved the conversion of the South Deep old order mining right into a new order mining right, which includes an additional portion of ground known as Uncle Harry’s, which is contiguous to South Deep. This, together with the previous conversions for Driefontein, Kloof and Beatrix granted in 2005, means that all of Gold Fields’ South African operations have now been granted their new order mining rights.

In addition, we are finalising three further empowerment transactions that will assist in achieving our 2014 ownership target. These deals include an Employee Share Option plan for 10.75 per cent of GFIMSA, a broad-based Black Economic Empowerment transaction for 10 per cent of South Deep and a broad-based Black Economic Empowerment transaction for 1 per cent of GFIMSA, excluding South Deep.

Growth projects continue to make good progress. Exploration drilling has led to an increase in indicated and inferred Mineral Resources at the Hamlet deposit at St Ives, which is now reported at 1 million ounces. After Athena, Hamlet is the second major discovery in the developing Argo-Athena camp in the last two years, amid extensive investment in the St Ives’ near-mine exploration programme. At Athena, good progress has been made in decline development, which is on track to achieve first production at this new underground mine by December 2010.

At the Chucapaca project in Peru, Gold Fields, together with our joint venture partner Buenaventura, announced an initial resource estimate of 5.6 million gold equivalent ounces at the Canahurie discovery, with mineralisation potential beyond the extent of the current drilling. A prefeasibility study has commenced together with a new round of in-fill and step-out drilling.

During the quarter we also announced a change in leadership at Gold Fields. After a long and outstanding career, during which he served Gold Fields with distinction in various capacities, Alan Wright will retire as chair and director of Gold Fields at the Annual General Meeting in November 2010. It is proposed that he be replaced as chair by prominent businesswoman and activist, Dr. Mamphela Ramphele, who was appointed as director and deputy chair with effect from 1 July 2010. As we continue on our path towards being the world’s leading sustainable gold producer, we look forward to Dr. Ramphele’s contribution, leadership and wealth of experience.”

Stock data   JSE Limited – (GFI)  
Number of shares in issue   Range - Quarter ZAR92.90 – ZAR108.31
- at end June 2010 705,903,511   Average Volume - Quarter 2,386,598 shares / day
- average for the quarter 705,826,038   NYSE – (GFI)  
Free Float 100%   Range - Quarter US$12.55 – US$14.15
ADR Ratio 1:1   Average Volume - Quarter 5,855,230 shares / day
Bloomberg / Reuters GFISJ / GFLJ.J