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 2020.

Silicosis and tuberculosis class and individual actions

The Tshiamiso Trust has been established to carry out the terms of the settlement agreement reached between six gold mining companies (including Gold Fields) and claimant attorneys in the silicosis and TB class action. The Trust is responsible for ensuring that all eligible current and former mineworkers across southern Africa with silicosis or work-related TB (or their dependants where the mineworker has passed away) are compensated.

As of 20 January 2021, prospective claimants were able to begin booking appointments at 50 lodgement offices in mining centres and areas from which labour has historically been drawn in South Africa, Lesotho, Mozambique, Eswatini and Botswana. And from 15 February, those offices were opened to accepting the lodgement of documents from these claimants.

The outcome of this work is that, as of 20 July 2021:

  • the Trust's call centre has dealt with 73 797 calls;
  • 40 182 claimants have made appointments to lodge;
  • 36 413 have formally lodged claims applications; and
  • 7 723 have undergone benefit medical examinations.

Information on the progress in the implementation of the object of the Tshiamiso Trust and other details can be found at https://www.tshiamisotrust.com

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 2021, the provision for Gold Fields' share of the settlement of the class action claims and related costs amounted to US$17m (R247m). The nominal value of this provision is US$22m (R309m). 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.

US$150 million Gold Fields La Cima revolving credit facility

In April 2021, Gold Fields La Cima entered into a US$150m revolving credit facility. The final maturity date of this facility is three years from the effective date.

Syndicated revolving credit facilities extension

In July 2021, the US$1,200m Revolving Credit bank facilities were extended by a further one year. The facilities will now run as follows:

  • Tranche A: US$600m up to 25 July 2022 then US$550m to 25 July 2023; and then US$505m to 25 July 2024.
  • Tranche B: US$600m up to 25 July 2024 then US$505m to 25 July 2025; and then US$460m to July 2026.

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 2021 US$'m 
Net profit 410.1 
– Operating segments 481.0 
– Corporate and projects (70.9)
Six months ended 30 June 2020 US$'m 
Net profit 160.8 
– Operating segments 199.2 
– Corporate and projects (38.4)

Additional notes include:

Chris Griffith
Chief Executive Officer

19 August 2021