Gold Fields

Basis of preparation

The unaudited condensed consolidated interim financial statements are prepared in accordance with International Financial Reporting Standard, (IAS) 34 Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by Financial Reporting Standards Council and the requirements of the Companies Act of South Africa.

The condensed consolidated financial statements are presented in United States Dollars, which is Gold Fields Limited’s presentation currency. The accounting policies applied in the preparation of these interim financial statements are in terms of International Financial Reporting Standards and are consistent with those applied in the previous annual financial statements.

Certain information presented in these results constitutes pro forma financial information. The responsibility for preparing and presenting the pro forma financial information and for the completeness and accuracy of the pro forma financial information is that of the directors of the Company. This is presented for illustrative purposes only and has not been audited or reviewed or otherwise reported on by our external auditors. Because of its nature, the pro forma financial information may not fairly present Gold Field’s financial position, changes in equity, and results of operations or cash flows. The pro forma adjustments have been compiled and calculated in terms of the JSE Listings Requirements and group accounting policies which are consistent with International Financial Reporting Standards and as disclosed in the consolidated financial statements for the year ended 31 December 2019.

Restatement relating to cut-off

During the 2019 financial year, management identified an error relating to cut-off as transactions between cost close (the date the general ledger was closed for reporting purposes) and calendar month-end had not been recorded. This resulted in restatements to a number of financial statement captions in the financial statements, refer to Note 42 of the financial statements for the year ended 31 December 2019. This has also resulted in an error in the financial statements for the six months ended 30 June 2019, which has been corrected by restating each of the affected financial statement line items for prior periods. All unaffected financial statement line items, in the tables below, have been grouped together as “other”.

No adjustments were made to the consolidated income statement, statement of changes in equity and statement of comprehensive income. There was no impact on the Group’s basic, headline or diluted earnings per share for the six months ended 30 June 2019. The following tables summarise the impact on the Group’s consolidated financial statements.

i. Consolidated statement of financial position

  30 June 2019  
  Adjustments   As
Cash and cash equivalents 534.8    (44.5)   490.3   
Other current assets 500.6    (41.4)   459.2   
Other 5,480.4    —    5,480.2   
Total assets 6,515.8    (85.9)   6,429.9   
Borrowings 2,033.0    —    2,033.0   
Current portion of borrowings —    —    —   
Other current liabilities 602.9    (85.9)   517.0   
Other 1,054.9    —    1,054.9   
Total liabilities 3,690.8    (85.9)   3,604.9   
Total equity 2,825.0    —    2,825.0   
Net debt 1,498.2    44.5    1,542.7   
Adjusted EBITDA 1,130.0    —    1,130.0   
Net debt to adjusted EBITDA 1.33        1.37   

  1 January 2019  
  Adjustments   As
Cash and cash equivalents 399.7    (180.0)   219.7   
Other current assets 521.4    (14.6)   506.8   
Other 5,183.2    —    5,183.2   
Total assets 6,104.3    (194.6)   5,909.7   
Borrowings 1,925.3    (111.0)   1,814.3   
Current portion of borrowings 86.3    6.2    92.5   
Other current liabilities 520.7    (89.8)   430.9   
Other 865.1    —    865.1   
Total liabilities 3,397.4    (194.6)   3,202.8   
Total equity 2,706.9    —    2,706.9   
Net debt 1,611.9    75.2    1,687.1   

ii. Consolidated statement of cash flows

  30 June 2019  
  Adjustments   As
Change in working capital (25.2)   27.3    2.1   
Royalties and taxation paid (99.1)   3.4    (95.7)  
Other 550.0    —    550.0   
Cash flows from operating activities 425.7    30.7    456.4   
Dividends paid (11.5)   —    (11.5)  
Cash flows from investing activities (277.4)   —    (277.4)  
Loans repaid (1,503.2)   111.0    (1,392.2)  
Loans raised 1,520.7    (6.2)   1,514.5   
Other (17.2)   —    (17.2)  
Cash flows from financing activities 0.3    104.8    105.1   
Net cash generated 137.1    135.5    272.6   
Effect of exchange rate fluctuation on cash held (2.0)   —    (2.0)  
Cash and cash equivalents at beginning of the period 399.7    (180.0)   219.7   
Cash and cash equivalents at beginning of the period 534.8    (44.5)   490.3   

iii. Consolidated income statement, consolidated statement of comprehensive income and consolidated statement of changes in equity

There is no impact on the consolidated income statement, consolidated statement of comprehensive income and consolidated statement of changes in equity for the six months ended 30 June 2019.

Silicosis and tuberculosis class and individual actions
As previously reported, the Gold Working Group (comprising African Rainbow Minerals, Anglo American SA, AngloGold Ashanti, Gold Fields, Harmony and Sibanye-Stillwater) (the “GWG Parties”) concluded a settlement agreement (the "Settlement Agreement") with the attorneys representing claimants in the silicosis and tuberculosis class action litigation on 3 May 2018. The Settlement Agreement provides meaningful compensation to eligible workers suffering from silicosis and/or tuberculosis who worked in the GWG Parties’ mines from 12 March 1965 to the effective date of the Settlement Agreement. The Settlement Agreement was approved by a full bench of the High Court, Gauteng Local Division, on 26 July 2019. The Settlement Agreement has become effective, operational and unconditional on 10 December 2019.

The settlement trust, to be known as the Tshiamiso Trust, has commenced its work of implementing the Settlement Agreement. This will include the Trust tracking and tracing class members, processing all submitted claims, including the undertaking of benefit medical examinations and the payment of benefits to eligible claimants.

On 1 February 2020, the GWG Parties commenced the payment of their quarterly administration and benefit contributions to the Tshiamiso Trust to enable the trustees to settle benefits of potential eligible claimants.

Benefits provided for in the Settlement Agreement and other details can be found at

Provision raised
Gold Fields has provided for the estimated cost of the above settlement based on actuarial assessments and the provisions of the Settlement Agreement. At 30 June 2020, the provision for Gold Fields’ share of the settlement of the class action claims and related costs amounts to US$16m (R280m). The nominal value of this provision is US$22m (R380m).

The ultimate outcome of this matter however remains uncertain, with the number of eligible workers successfully submitting claims and receiving compensation being uncertain. The provision is consequently subject to adjustment in the future.

Syndicated revolving credit facilities extension
In July 2020 Gold Fields exercised a one year extension request for the US$1.2bn bank syndicated revolving credit facilities.

The final uptake of the one year extension for Tranche A and B of the US$1.2bn RCF was US$870m. Tranche A, a US$600m three year RCF terminates 25 July 2022, USD485m has been extended to 25 July 2023. Tranche B, a US$600m five year RCF terminates on 25 July 2024, US$485m has been extended to 25 July 2025.

Segment reporting
The net profit/(loss) (excluding Asanko) per the income statement reconciles to the net profit/(loss) in the segmental operating and financial results as follows:

Six months ended 30 June 2020 US$’m  
Net profit 160.8   
– Operating segments 199.2   
– Corporate and projects (38.4)  

Six months ended 30 June 2019 US$’m  
Net profit 78.7   
– Operating segments 187.6   
– Corporate and projects (108.9)  

Nick Holland
Chief Executive Officer

20 August 2020

Currently viewing: Basis of preparation / Next: Income statement