GOLD FIELDS LIMITED - Results for the year ended 31 December 2017

2018-02-14 07:05:00

GFI 201802140001A
Results for the year ended 31 December 2017

Gold Fields Limited 
Incorporated in the Republic of South Africa  
Registration number 1968/004880/06  
Share code: GFI 
Issuer code: GOGOF 
ISIN - ZAE 000018123

GOLD FIELDS UNAUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2017 

SALIENT FEATURES
Including continuing and discontinued operations

Year ended 31 December 2017

- 2.160 million ounces of attributable gold production
  Up 1% YoY

- US$955 per ounce All-in sustaining costs
  Down 3% YoY

- US$1,088 per ounce All-in costs
  Up 8% YoY

- US$2 million cash outflow from operating activities*
  US$329 million cash inflow (excl. growth projects)

- Damang and Gruyere projects on schedule and budget

- Impairment of US$278 million (R3.495 million) at South Deep

- A year of reinvestment for medium term growth and sustainability of free cash flow

- Net debt/EBITDA
  Ratio 1.03x
  Up 8% YoY

  Note: *Cash flow from operating activities less net capital expenditure and environmental payments
           

JOHANNESBURG. 14 February 2018: Gold Fields Limited (NYSE & JSE: GFI) announced normalised earnings from continuing
operations of US$141 million for the year ended December 2017 compared with US$190 million for the year ended 
December 2016.  

A final dividend number 87 of 50 SA cents per share (gross) is payable on 12 March 2018, giving a total dividend for
the year ended December 2017 of 90 SA cents per share (gross).

Statement by Nick Holland, 
Chief Executive Officer of Gold Fields
Operational outperformance and higher prices drive internal funding of growth projects

At the end of 2016, Gold Fields entered into a period of reinvesting into the business. 2017 was set to be a tough
year, with the Group expecting a cash outflow for the year given the increased level of project capital expenditure.
Today, we are pleased to announce that the Group was largely cash neutral for FY17, on the back of better than expected 
metal prices and outperformance from the international operations. Despite incurring project capital of US$115m at Damang,
A$106m (US$81m) at Gruyere, R225m (US$17m), at South Deep, US$53m on the feasibility study at Salares Norte as well as
A$78m (US$60m) in respect of the deferred portion of the purchase price of our 50% in Gruyere, the net cash outflow was
limited to US$2m during 2017. Importantly, cash flow from the operations excluding growth projects was US$329m. If South
Deep growth and the Damang reinvestment of US$17m and US$115m, respectively, are excluded, then the mining operations
generated US$441m. This places Gold Fields in a comfortable position to take on another high capex year in 2018 as both
Gruyere and Damang progress toward completion. 

For the fifth consecutive year, we have met or exceeded our production and cost guidance for the year. 
Attributable gold equivalent production for 2017 was 2.16Moz (FY16: 2.15Moz), exceeding guidance of 2.10-2.15Moz. 
All-in sustaining costs (AISC) and all-in costs (AIC) were US$955/oz (FY16: US$980/oz) and US$1,088/oz (FY16: US$1,006/oz), 
respectively, both below the lower end of the guidance range provided in February 2017 - AISC: US$1,010-1,030/oz and 
AIC: US$1,170-1,190/oz. The international operations all exceeded guidance for the year, once again highlighting 
the quality of these assets. 

South Deep was unable to recover from the tough Q1 2017 which was impacted by two fatalities and three falls of ground
in the high grade corridors, with production for the year 11% below original guidance (costs were only 3% above
guidance), as flagged in Q3 2017 operating results in October 2017. 

As per our trading statement released on 8 February 2018, headline earnings for 2017 were US$194m or US$0.24 per
share. Net loss for the year was US$35m or US$0.04 per share. Normalised earnings for the year was US$138m or US$0.17 
per share.

In line with our dividend policy of paying out 25% to 35% of net earnings as dividends, we declared a final dividend
of 50 SA cents per share.  This takes the total dividend for the year to 90 SA cents per share (FY16: 110 SA cents per
share). 

On the back of the cash break even position from operating activities achieved for the year, the net debt at 
31 December 2017 was US$1,303m, compared to US$1,166m at the end of FY16. This implies a net debt to adjusted EBITDA 
of 1.03x, compared to 0.95x at the end of December 2016 and largely in line with our target of 1.0x. Gold Fields balance 
sheet remains in a strong position to complete its reinvestment phase. 

Update on projects

Damang
The Damang reinvestment project, which commenced on 23 December 2016, got off to a strong start and is currently
tracking well against the project plan. During 2017, total tonnes mined were 40Mt vs. the original project schedule 
of 33Mt, driven by better than expected productivity. Gold produced of 144koz was 29% higher than guidance of 120koz,
underpinned by additional volumes at higher grades from the Amoanda pit, while AIC of US$1,827/oz was significantly below
guidance of US$2,250/oz.  

Project capital of US$115m (included in the costs above) was spent during 2017, compared to the budget of US$120m. 
The cash outflow for the year was US$45m. Construction of the Far East Tailings Storage Facility (FETSF) commenced 
during Q1 2017, and the facility was commissioned by year-end, on time and within budget. The FETSF is planned to provide
cost effective tailings capacity of 44Mt which is 10 years of capacity at steady state production. Decommissioning of the
East Tailings Storage Facility (ETSF) commenced during Q1 2018.

Guidance for 2018 is production of 160koz at AIC of US$1,520/oz which includes project capital of US$105m. First ore
from the main Damang pit is on track for Q2 2019.

Gruyere
Early work at Gruyere began in December 2016, with Gold Fields taking over management of the project on 1 February 2017.
The project construction schedule remains unchanged, with engineering progress in line with budget at 72% and construction 
progress at 32% also in line with plan as at end-December 2017. The Gruyere village, which includes 648 rooms, offices 
and recreational facilities, was commissioned during H1 2017. 

Costs incurred to date are also in line with the project budget, which was slightly increased to A$532m (US$400m)
(100% basis) during H1 2017 following a detailed review of the feasibility study. A$477m (US$358m) of the total capital 
cost has been committed and priced, with A$186m (US$143m) already spent. 

The Bulk Earthworks contract was awarded to MACA Civil in May 2017. The 28km Gruyere main access road and sealed
airstrip have been completed, while the pit and tailings storage facility (TSF) areas were cleared during Q4 2017. 
Construction of the TSF embankment walls is scheduled for completion during H1 2018. The engineering, procurement and
construction (EPC) contract for the Gruyere CIL processing plant and the associated infrastructure was awarded to Amec 
Foster Wheeler Cimvec JV.  Construction of the seven carbon-in-leach tanks is progressing to plan. The SAG mill has been 
delivered while the Ball mill components, which are currently in Perth undergoing final inspection, is planned to be 
delivered in Q1 2018.

During H1 2017, a power supply contract was signed with APA Group, a leading Australian energy infrastructure
business.  APA has received final approval from the Western Australian Department of Mines for the 198km Yamarna gas 
pipeline from Laverton, which is scheduled for completion in H1 2018. Civil and structural works have also begun at 
the 45MW gas-powered Gruyere plant (build, own, operate model over life), which will be connected to the gas pipeline, 
and will supply the mine’s energy needs for the life of mine.  

The Yeo borefield is planned to serve as the main water source for the Gruyere processing plant. All 32 boreholes
have been drilled and installation of the 95km water pipeline to the processing plant has commenced. Installation 
of the 22kV overhead power line servicing the borefield is scheduled to commence in Q2 2018. 

Finally, the mining services contract, which has a cost of A$400m (US$300m) over a five-year term, was executed with
Downer EDI in Q4 2017. Downer began mobilising their workforce during Q1 2018 to begin construction of the mining
infrastructure. Mining activities are planned to commence in Q4 2018. 

Total project capital of A$311m (US$249m) (100% basis) has been budgeted for 2018. Gold Fields budget for Gruyere in
2018 is A$181m, which includes items not picked up in the JV such as capitalised interest on the Gruyere debt facility
drawn down to fund the project. Gruyere remains on track for first production during Q1 2019.  

Salares Norte
The feasibility study for the Salares Norte project is tracking well for completion by the end of 2018. The interim
results from the feasibility study indicate the following metrics for the project:
- Resource of 23.3Mt at 4.9g/t Au and 66.0g/t Ag, with 95% in the indicated category (majority of which are oxide
  material); 
- Annual throughput: 2mtpa;
- Life of mine gold equivalent production: c.3.5Moz - front ended;
- AISC: US$575 per gold equivalent ounce; and
- Project capex: US$850m (+/-5%).

The project envisages open pit operations with a processing plant that includes both CIP and Merrill Crowe processes,
due to the high silver content. Dry stack tailings are expected to be used. Water and Land Rights are already secured
and permitted for the future operational stage. The environmental impact assessment (EIA) is expected to be lodged with
the Chilean authorities during April 2018.

US$83m is budgeted for 2018, which includes US$13m for district exploration. 

Regional performance in FY17

Australia 
Gold production in the Australia region for FY2017 was 1% lower YoY at 935koz (FY16: 942koz), but exceeded original
guidance of 910koz, which included Darlot for the full year. All operations (excluding Darlot) performed better than
plan.  AIC for the region was 2% lower YoY in A$ terms at A$1,239/oz (FY16: A$1,261/oz) and marginally higher YoY in US$
terms at US$948/oz (FY16: US$941/oz). The region had another strong year of cash generation, with net cash flow of US$189m
for FY17 (FY16: US$256m), excluding Gruyere.

There were a number of important developments in the region during 2017:
- As previously announced, the sale of Darlot to Red 5 was completed on 2 October 2017. Gold Fields received the
  relevant cash sums as well as the issue of new shares as part of the consideration and as a consequence of the partial
  underwriting of a rights issue by the Group. The net result is that Gold Fields has a 19.9% shareholding in Red 5.
- The brownfields exploration programme in Australia continued to show positive results in 2017, with the increase in
  reserves more than replacing depletion in 2017. For the first time in four years, Agnew more than replaced depletion, 
  with the future looking positive from the current exploration activities. The total exploration spend for the year was
  A$95m.
- Mining at Invincible underground commenced in Q4 2017. The Invincible complex continues to grow and is expected to
  remain a key contributor to production at St Ives for many years to come.
- A favourable advanced scoping study on the Paleochannel project at St Ives has moved the project into prefeasibility
  stage. The first part of the study will focus on evaluating a viable mining method and is expected to be completed by
  end 2018. The inventory being assessed on this project exceeds 2-3Moz.
- Following a positive feasibility study of Zone 110/120, the board has approved the development of this extension to
  the Wallaby underground mine at Granny Smith. This includes mineral reserves of 1.3Moz and will extend Granny Smith’s 
  life to 2027 with tangible upside beyond that.

West Africa
Attributable gold production from the West Africa region decreased by 1% YoY to 639koz (FY16: 644koz) due to lower
production at both Tarkwa and Damang. However, Damang materially outperformed guidance of 120koz, producing 144koz 
due to better than expected performance from Amoanda. AIC for the region increased by 10% YoY to US$1,119/oz (FY16:
US$1,020/oz) mainly as a result of the project capex spent on the Damang reinvestment project. Despite the increase 
in capex for the year, the region generated net cash flow of US$64m for FY2017 (FY16: US$100m). 

During Q4 2017, a decision was made to move Tarkwa to contractor mining. The rationale for the change includes
unsustainable wage increases and demands, increase in operational costs as the pits get deeper and haulage distances get
longer; as well as the need to replace aging fleet. As part of the process and in terms of the Ghanaian labour law a
retrenchment process will be initiated, though the contractor has agreed to re-employ a large number of the 1,700 affected
employees. This decision by the operation was met with resistance from the Ghana Mineworkers Union, who have subsequently
approached the court on grounds that the redundancy process is not lawful. A hearing has been set down for mid-February
2018. An update regarding the hearing will be provided once the legal process has run its course.

South America
Attributable equivalent gold production at Cerro Corona increased by 13% YoY to 305koz (FY16: 269koz), mainly due to
higher copper prices, higher gold head grades and higher gold recovery. AIC decreased by 59% YoY to US$203 per gold
ounce (FY16: US$499 per gold ounce). AIC per equivalent ounce decreased by 12% YoY to US$673 per equivalent ounce 
(FY16: US$762 per equivalent ounce). On the back of the strong performance from the operation, Cerro Corona generated 
net cash flow of US$117m (FY16: US$77m). 

We are pleased to announce the successful extension of Cerro Corona’s life to 2030. The life extension is to be
achieved by a combination of a higher density factor along with an increase in the dam walls of the current tailings 
dam to 3,803m above sea level (which adds two years to the existing TSF) and in-pit tailings (which adds five years). The
increased tailings storage comes at minimal additional capex and allows for an increase in reserves of 1.4Moz eq (40.1Mt at
0.5g/t Au and 0.4% Cu) (a 58% net increase), which converts 80% of resources. Cerro Corona remains a key asset for the
Group and the life extension provides longevity for this highly cash generative region. Work on a scoping study for further
life extension will be undertaken in 2018. As a result of the increased life, a previous impairment of US$53m (gross)
has been reversed.

South Deep 
2017 was a year of two halves for South Deep, with Q1 2017 negatively impacted by two fatal accidents and three falls
of ground in the higher grade section of the mine which resulted in a deferral of mining higher grade areas. Production
recovered through the rest of the year, with production in H2 2017 increasing by 36% to 5,038kg (162koz) from 3,710kg
(119koz) in H1 2017.

Production for the year was 11% below original guidance, as flagged in the Q3 2017 operating results in October 2017,
at 8,748kg (281koz), compared to 9,032kg (290koz) in FY16. AIC increased 3% YoY to R600,109/kg (US$1,400/oz) from
R583,059/kg (US$1,234/oz) in FY16, 3% higher than guidance of R585,000/kg. Performance of key activities included:
- The mine recorded net cash outflow of R804m (US$60m) in 2017 compared with the rebase plan which forecast an outflow
  of R830m.
- Development decreased by 1% to 6,897 metres in 2017 from 6,933 metres in 2016. New mine development increased by 20%
  YoY to 976 metres from 811 in 2016.
- Longhole stoping volumes increased by 3% to 767kt in FY17 (FY16: 745kt).
- Destress mining increased by 3% YoY to 33,419m2 (FY16: 32,333m2).
- Backfill placed was 11% lower YoY at 333m3.

While good progress has been made on the technical front, with the implementation of the mining method receiving
positive feedback from the Geotechnical Review Board (GRB - a group of pre-eminent international recognised geotechnical
experts), the execution of the full mining value chain remains sub-optimal. 

The goodwill impairment of R3.5bn (US$278m) (gross and after tax) related to the slow start of the rebase plan
(announced in February 2017) over the past year and a reduction in the gold price and resource price assumptions used 
in the life of mine model.  It is expected that the ramp-up will be more gradual. The steady state production target 
of c.500koz in 2022 has not changed.  Post this impairment, the carrying value of South Deep is R24.7bn (US$1.96bn). 

As a result of the slow start to the rebase plan in 2017, we expect a more gradual build up to steady state production
of c.500koz by 2022. In October 2017, we noted that there would be a knock-on impact on 2018 production. We expect
production for 2018 to be 10,000kg (322koz), 10% lower than the rebase plan. However, we expect AIC to be R540,000/kg,
compared to R567,910/kg in the rebase plan. 

Outlook for 2018
Attributable equivalent gold production for the Group for 2018 is expected to be between 2.08Moz and 2.10Moz with the
main difference between 2017 and 2018 due to the sale of Darlot. AISC is expected to be between US$990/oz and
US$1,010/oz. AIC for the Group is planned to be between US$1,190/oz and US$1,210/oz. These expectations assume exchange 
rates of R/US$:12.00 and A$/US$:0.80. AISC is planned to increase by between 4 to 6%, ~4% of which is due to stronger 
exchange rates and ~2% of which is due to increases in costs in local currency. AIC is planned to increase by between 
9 to 11%, ~4% of which is due to stronger exchange rates and ~6% which is due increases in growth capital expenditure.

Capital expenditure for the Group is planned at US$835m. Sustaining capital expenditure for the Group is planned at
US$549m and growth capital expenditure is planned at US$286m. The US$286m of growth capital expenditure comprises US$105m
for Damang, A$181m (US$145m) for Gruyere, as well as R434m (US$36m) for South Deep. In addition, US$83m is planned for
Salares Norte.

In 2017, total capital expenditure was US$840m with sustaining capital expenditure of US$624m and growth capital
expenditure of US$216m. Expenditure on Salares Norte of US$53m in 2017.

Sale of Arctic Platinum 
Post year-end (as announced on 24 January 2018), Gold Fields completed the sale of its palladium-rich, polymetallic
Arctic Platinum Project (APP) in northern Finland to a Finnish subsidiary of private equity fund CD Capital Natural
Resources Fund III.  The purchase consideration comprises US$40m cash and royalty (2% NSR (net smelter return) on all 
metals, with 1% capped at US$20 million and 1% uncapped).

STOCK DATA FOR THE YEAR ENDED 31 DECEMBER 2017                    
Number of shares in issue                        NYSE - (GFI)                                       
- at 31 December 2017          820,614,217       Range - Year               US$2.95 - US$4.68       
- average for the year         820,611,806       Average Volume - Year      6,358,268 shares/day    
Free Float                     100 per cent      JSE LIMITED - (GFI)                                
ADR Ratio                      1:1               Range - Year               ZAR39.50 - ZAR60.94     
Bloomberg/Reuters              GFISJ/GFLJ.J      Average Volume - Year      2,722,312 shares/day    

Key Statistics                                  
                                                                         UNITED STATES DOLLAR      
                                                              Quarter                         Year ended             
                                               December      September      December           
                                                   2017           2017          2016        2017        2016    
Gold produced*                   oz (000)           546            567           566       2,160       2,146    
Continuing operations                               546            552           552       2,121       2,080    
Discontinued operations                               -             15            14          39          66    
Tonnes milled/treated                 000         8,450          8,712         8,606      34,492      34,222    
Continuing operations                             8,450          8,609         8,493      34,154      33,768    
Discontinued operations                               -            103           113         338         454    
Revenue                            US$/oz         1,275          1,276         1,198       1,255       1,241    
Continuing operations                             1,275          1,276         1,197       1,255       1,240    
Discontinued operations                               -          1,270         1,223       1,252       1,252    
Operating costs                 US$/tonne            43             43            45          43          42    
Continuing operations                                43             42            44          42          41    
Discontinued operations                               -            158           120         137         126    
All-in sustaining costs#           US$/oz           959            906           911         955         980    
Continuing operations                               959            896           897         945         972    
Discontinued operations                               -          1,284         1,443       1,432       1,238    
Total all-in cost#                 US$/oz         1,115          1,032           941       1,088       1,006    
Continuing operations                             1,115          1,025           928       1,081         998    
Discontinued operations                               -          1,284         1,443       1,432       1,238    
Net debt                             US$m         1,303          1,302         1,166       1,303       1,166    
Net debt to EBITDA ratio                                                                    1.03        0.95    
Net (loss)/earnings                  US$m                                                  (35.0)      162.8    
Continuing operations                                                                      (48.1)      161.6    
Discontinued operations                                                                     13.1         1.2    
Net (loss)/earnings              US c.p.s                                                     (4)         20    
Continuing operations                                                                         (6)         20    
Discontinued operations                                                                        2           -    
Headline earnings/(loss)             US$m                                                  193.6       208.4    
Continuing operations                                                                      196.0       202.9    
Discontinued operations                                                                     (2.4)        5.5    
Headline earnings               US c.p.s.                                                     24          26    
Continuing operations                                                                         24          25    
Discontinued operations                                                                        -           1    
Normalised earnings/(loss)           US$m                                                  137.5       190.9    
Continuing operations                                                                      141.0       189.9    
Discontinued operations                                                                     (3.5)        1.0    
Normalised earnings             US c.p.s.                                                     17          24    
Continuing operations                                                                         17          24    
   Discontinued operations                                                                     -           -    
*  All of the key statistics are managed figures from continuing operations, except for gold produced which is attributable 
   equivalent production.                                                                                                                    
#  Refer to pages 27 and 28.                                                                                      
   All operations are wholly owned except for Tarkwa and Damang in Ghana (90.0 per cent) and Cerro Corona in Peru (99.5 per cent).       
   Gold produced (and sold) throughout this report includes copper gold equivalents of approximately 7 per cent of 
   Group production.     
   Figures may not add as they are rounded independently.    


Certain forward looking statements
This report contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933,
as amended, or the Securities Act, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended, or the
Exchange Act, with respect to Gold Fields' financial condition, results of operations, business strategies, operating
efficiencies, competitive position, growth opportunities for existing services, plans and objectives of management, 
markets for stock and other matters.

These forward-looking statements, including, among others, those relating to the future business prospects, revenues
and income of Gold Fields, wherever they may occur in this report and the exhibits to the report, are necessarily
estimates reflecting the best judgment of the senior management of Gold Fields and involve a number of risks and 
uncertainties that could cause actual results to differ materially from those suggested by the forward-looking 
statements. As a consequence, these forward-looking statements should be considered in light of various important 
factors, including those set forth in this report. Important factors that could cause actual results to differ 
materially from estimates or projections contained in the forward-looking statements include, without limitation:
- overall economic and business conditions in South Africa, Ghana, Australia, Peru and elsewhere;
- changes in assumptions underlying Gold Fields' mineral reserve estimates;
- the ability to achieve anticipated efficiencies and other cost savings in connection with past and future
  acquisitions;
- the ability to achieve anticipated production cost estimates at existing operations as outlined in this report or as
  otherwise disclosed;
- the success of the Group's business strategy, development activities and other initiatives;
- the ability of the Group to comply with requirements that it operate in a sustainable manner and provide benefits to
  affected communities;
- decreases in the market price of gold or copper;
- the occurrence of hazards associated with underground and surface gold mining or contagious diseases at Gold Field's
  operations;
- the occurrence of work stoppages related to health and safety incidents;
- loss of senior management or inability to hire or retain employees;
- fluctuations in exchange rates, currency devaluations and other macro-economic monetary policies;
- the occurrence of labour disruptions and industrial actions;
- power cost increases as well as power stoppages, fluctuations and usage constraints;
- supply chain shortages and increases in the prices of production imports;
- the ability to manage and maintain access to current and future sources of liquidity, capital and credit, including
  the terms and conditions of Gold Fields' facilities and Gold Fields' overall cost of funding;
- the adequacy of the Group's insurance coverage;
- the manner, amount and timing of capital expenditures made by Gold Fields on both existing and new mines, mining
  projects, exploration project or other initiatives;
- changes in relevant government regulations, particularly labour, environmental, tax, royalty, health and safety,
  water, regulations and potential new legislation affecting mining and mineral rights;
- fraud, bribery or corruption at Gold Field's operations that leads to censure, penalties or negative reputational
  impacts; and
- political instability in South Africa, Ghana, Peru or regionally in Africa or South America.

Gold Fields 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 report or to reflect the occurrence of unanticipated events.


Total Gold Fields operations
Income statement (Continuing and discontinued operations)
Figures are in millions unless otherwise stated
                                                                   UNITED STATES DOLLAR                   
                                                                        Year ended                   
                                                                    2017           2016    
Revenue                                                          2,810.8        2,749.5    
Operating costs - net                                           (1,404.2)      (1,387.5)   
Amortisation and depreciation                                     (774.8)        (679.2)   
Net interest expense                                               (62.3)         (59.1)   
Share of equity accounted earnings after taxation                   (1.3)          (2.3)   
Loss on foreign exchange                                            (3.7)          (6.4)   
Gain on financial instruments                                       34.8           14.4    
Share-based payments                                               (27.4)         (14.4)   
Long-term employee benefits                                         (5.1)         (11.0)   
Other                                                              (44.0)         (48.5)   
Exploration and project costs                                     (111.3)         (92.2)   
Profit before royalties, taxation and non-recurring items          411.6          463.3    
Non-recurring items                                               (200.4)         (17.1)   
Profit before royalties and taxation                               211.2          446.2    
Royalties                                                          (63.1)         (80.4)   
Profit before taxation                                             148.1          365.8    
Mining and income taxation                                        (172.1)        (192.1)   
- Normal taxation                                                 (207.0)        (204.7)   
- Deferred taxation                                                 34.9           12.6    
Net (loss)/profit                                                  (24.0)         173.7    
Attributable to:                                                                           
- Owners of the parent                                             (35.0)         162.8    
- Non-controlling interest                                          11.0           10.9    
Net (loss)/earnings                                                (35.0)         162.8    
Headline earnings                                                  193.6          208.4    
Normalised earnings                                                137.5          190.9    

Statement of cash flows (Continuing and discontinued operations)
Figures are in millions unless otherwise stated
                                                                   UNITED STATES DOLLAR                   
                                                                        Year ended                   
                                                                    2017           2016    
Cash flows from operating activities                               831.6          956.9    
Profit before royalties, tax and non-recurring items               411.6          463.3    
Non-recurring items                                               (200.4)         (17.1)   
Amortisation and depreciation                                      774.8          679.2    
South Deep BEE dividend                                             (1.5)          (1.3)   
Payment of long-term incentive plan                                (11.9)             -    
Change in working capital                                          (64.2)          (2.7)   
Royalties and taxation paid                                       (309.4)        (234.8)   
Other non-cash items                                               232.6           70.3    
                                                                                           
Dividends paid                                                     (69.2)         (39.4)   
Owners of the parent                                               (62.8)         (39.2)   
Non-controlling interest holders                                    (6.4)          (0.2)   
                                                                                           
Cash flows from investing activities                              (908.6)        (867.9)   
Capital expenditure - additions                                   (840.4)        (649.9)   
Capital expenditure - proceeds on disposal                          23.2            2.3    
Purchase of Gruyere Gold project assets                                -         (197.1)   
Purchase of investments                                            (80.1)         (12.7)   
Proceeds on disposal of Darlot                                       5.4              -    
Proceeds on disposal of investments                                    -            4.4    
Environmental payments                                             (16.7)         (14.9)   
                                                                                           
Cash flows from financing activities                                84.2           37.0    
Loans received                                                     779.7        1,298.7    
Loans repaid                                                      (695.5)      (1,413.2)   
Proceeds on issue of shares                                            -          151.5    
                                                                                           
Net cash (outflow)/inflow                                          (62.0)          86.6    
Translation adjustment                                              14.3            0.1    
Cash at beginning of period                                        526.7          440.0    
Cash at end of period                                              479.0          526.7    
Cash flow for continuing and discontinued operations 
from operating activities less net capital expenditure
and environmental payments                                          (2.3)         294.4    

Results for the Group 
(Continuing and discontinued operations)

SAFETY
The Group's fatality injury frequency rate regressed from 0.02 in 2016 to 0.05 in 2017. The total recordable 
injury frequency rate (TRIFR)1 for the Group regressed by 7 per cent from 2.27 in 2016 to 2.42 in 2017.

1 Total Recordable Injury Frequency rate (TRIFR). (TRIFR) = (Fatalities + Lost Time Injuries2 + Restricted Work
  Injuries3 + Medically Treated Injuries4) x 1,000,000/number of man-hours worked.

2 A Lost Time Injury (LTI) is a work-related injury resulting in the employee or contractor being unable to attend
  work for a period of one or more days after the day of the injury. The employee or contractor is unable to perform 
  any functions.

3 A Restricted Work Injury (RWI) is a work-related injury sustained by an employee or contractor which results in the
  employee or contractor being unable to perform one or more of their routine functions for a full working day, from the
  day after the injury occurred. The employee or contractor can still perform some of his duties.

4 A Medically Treated Injury (MTI) is a work-related injury sustained by an employee or contractor which does not
  incapacitate that employee and who, after having received medical treatment, is deemed fit to immediately resume his/her
  normal duties on the next calendar day, immediately following the treatment/re-treatment.


FOR THE YEAR ENDED 31 DECEMBER 2017 COMPARED WITH THE YEAR ENDED 31 DECEMBER 2016

The discussion of financial and operating results below is an analysis of total Gold Fields operations (continuing and
discontinued). Due to the fact that the discontinued operation does not have a material impact on the Group's results,
it has not been discussed separately. The discussion is based on the Income statement and Statement of cash flows on
pages 5 and 6, respectively.

REVENUE
Attributable equivalent gold production increased by 1 per cent from 2.146 million ounces in 2016 to 2.160 million
ounces in 2017.  

Gold production at South Deep in South Africa, decreased by 3 per cent from 9,032 kilograms (290,400 ounces) to 
8,748 kilograms (281,300 ounces).

Attributable gold production at the West African operations decreased by 1 per cent from 644,200 ounces in 2016 to
639,000 ounces in 2017 due to lower production at both Tarkwa and Damang. Attributable equivalent gold production 
at Cerro Corona in Peru increased by 13 per cent from 268,900 ounces in 2016 to 305,200 ounces in 2017. Gold 
production at the Australian operations decreased by 1 per cent from 942,300 ounces in 2016 to 934,600 ounces in 
2017 due to higher production at all the operations except Darlot which is only included for nine months, up to 
the date of disposal.  

At the South Africa region, production at South Deep decreased by 3 per cent from 9,032 kilograms (290,400 ounces) in
2016 to 8,748 kilograms (281,300 ounces) in 2017 due to decreased volumes, partially offset by increased grades.  

At the West Africa region, managed gold production at Tarkwa decreased marginally from 568,100 ounces in 2016 to
566,400 ounces in 2017 mainly due to lower plant throughput and recovery. At Damang, managed gold production decreased 
by 3 per cent from 147,700 ounces in 2016 to 143,600 ounces in 2017 mainly due to lower head grade and yield.

At the South America region, total managed gold equivalent production at Cerro Corona increased by 14 per cent from
270,200 ounces in 2016 to 306,700 ounces in 2017 mainly due to the higher copper price relative to the gold price (price
factor), higher gold head grades and higher gold recovery.  

At the Australia region, St Ives' gold production increased marginally from 362,900 ounces in 2016 to 363,900 ounces
in 2017. At Agnew/Lawlers, gold production increased by 5 per cent from 229,300 ounces in 2016 to 241,200 ounces in 2017
mainly due to increased ore processed. At Darlot, gold production decreased by 41 per cent from 66,400 ounces for the
12 months to December 2016 to 39,200 ounces for the 9 months to September 2017 mainly due to lower grades mined. At
Granny Smith, gold production increased by 2 per cent from 283,800 ounces in 2016 to 290,300 ounces in 2017 due to
increased ore tonnes mined and processed. 

The average US dollar gold price achieved by the Group increased by 1 per cent from US$1,241 per equivalent ounce in
2016 to US$1,255 per equivalent ounce in 2017. The average rand gold price decreased by 8 per cent from R584,894 per
kilogram to R538,344 per kilogram.  The average Australian dollar gold price decreased by 2 per cent from A$1,674 per 
ounce to A$1,640 per ounce. The average US dollar gold price for the Ghanaian operations increased by 1 per cent from
US$1,247 per ounce in 2016 to US$1,255 per ounce in 2017. The average equivalent US dollar gold price, net of treatment 
and refining charges, for Cerro Corona increased by 4 per cent from US$1,199 per equivalent ounce in 2016 to US$1,252 per
equivalent ounce in 2017. The average US dollar/Rand exchange rate strengthened by 9 per cent from R14.70 in 2016 to
R13.33 in 2017. The average Australian/US dollar exchange rate strengthened by 3 per cent from A$1.00 = US$0.75 in 2016 
to A$1.00 = US$0.77 in 2017.

Revenue increased by 2 per cent from US$2,750 million in 2016 to US$2,811 million in 2017 mainly due to the higher
ounces sold.

NET OPERATING COSTS
Net operating costs, including gold-in-process movements, increased by 1 per cent from US$1,388 million in 2016 to
US$1,404 million in 2017. The US$16 million higher net operating costs, were due to the negative exchange rate effect 
of US$59 million on translation into US$ dollar, partially offset by US$43 million lower cost in local currency. The
gold-in-process credit to cost of US$69 million in 2017 compared with US$46 million in 2016.

At the South Africa region, net operating costs at South Deep increased by 2 per cent from R3,993 million (US$272
million) in 2016 to R4,062 million (US$305 million) in 2017 mainly due to annual salary increases, electricity rate 
increase and an increase in employees in line with the strategy to sustainably improve all aspects of the operation.

At the West Africa region, net operating costs decreased by 8 per cent from US$463 million in 2016 to US$428 million
in 2017. This decrease in net operating costs was mainly due to lower production, benefits realised as a result of the
incorporation of the development agreement which is now fully embedded at the operations following ratification in March
2016, continued business process re-engineering, as well as a build-up of inventory of US$41 million in 2017 compared
with US$18 million in 2016. At Tarkwa, net operating costs decreased by 6 per cent from US$327 million to US$306 million
due to a significant build-up of gold-in-process of US$42 million in 2017 compared with US$18 million in 2016. At
Damang, net operating costs decreased by 10 per cent from US$136 million to US$122 million due to lower operating 
tonnes mined. 

At the South America region, net operating costs at Cerro Corona increased by 10 per cent from US$140 million in 2016
to US$154 million in 2017 mainly due to a drawdown of concentrate inventory of US$3 million in 2017 compared with a
build-up of US$4 million in 2016, as well as higher mining and power costs.

At the Australia region, net operating costs decreased by 2 per cent from A$689 million (US$514 million) in 2016 to
A$675 million (US$517 million) in 2017. At St Ives, net operating costs decreased by 15 per cent from A$244 million
(US$182 million) in 2016 to A$207 million (US$159 million) in 2017 mainly due to a gold inventory credit to cost of 
A$38 million (US$29 million) in 2017 compared with A$15 million (US$11 million) in 2016, as well as a decrease in 
mining cost of A$19 million (US$14 million) in 2017, following reduced operational tonnes mined from the open pits 
and cost improvements at the open pits and Hamlet. 

At Agnew, net operating costs increased by 4 per cent from A$189 million (US$141 million) in 2016 to A$197 million
(US$150 million) in 2017, mainly due to higher mining costs as a result of a 16 per cent increase in ore development 
metres achieved. At Granny Smith, net operating costs increased by 17 per cent from A$179 million (US$134 million) to 
A$210 million (US$160 million). Mining costs increased by A$11 million (US$8 million) due to the additional volumes 
and net operating costs were also impacted by a release of A$15 million (US$11 million) from gold-in process. 
A gold-in-process charge to cost of A$5 million (US$4 million) in 2017 compared with a credit of A$10 million 
(US$7 million) in 2016.  Net operating costs at Darlot decreased by 19 per cent from A$77 million (US$58 million) 
for twelve months to December 2016 to A$62 million (US$47 million) for nine months to September 2017.

AMORTISATION AND DEPRECIATION
Amortisation and depreciation for the Group increased by 14 per cent from US$679 million in 2016 to US$775 million in
2017. This increase of US$96 million was due to amortisation and depreciation increases of US$80 million due to the
increase in production at Cerro Corona and the Australian operations, a decrease in depreciable reserves at Tarkwa 
and St Ives and a change in the depreciation calculation at Cerro Corona, as well as the negative exchange rate effect 
of US$16 million. 

OTHER
Net interest expense for the Group increased by 5 per cent from US$59 million in 2016 to US$62 million in 2017. 
Interest expense of US$91 million, partially offset by interest income of US$6 million and interest capitalised of 
US$23 million in 2017 compared with interest expense of US$83 million, partially offset by interest income of 
US$9 million and interest capitalised of US$15 million in 2016.

The share of equity accounted losses decreased by 50 per cent from US$2 million in 2016 to US$1 million in 2017 mainly
due to downscaling of activities at Far Southeast project (FSE).  

The loss on foreign exchange decreased by 33 per cent from US$6 million in 2016 to US$4 million in 2017. These gains
and losses on foreign exchange related to the conversion of offshore cash holdings into their functional currencies.

The gain on financial instruments increased by 150 per cent from US$14 million in 2016 to US$35 million in 2017. 
In 2017, it mainly related to the South Deep gold hedge gain of US$10 million, Australian gold hedge gain (US$15
million/A$20 million), the oil hedge gain in Ghana (US$10 million) and Australia (US$6 million/ A$7 million), partially 
offset by the copper hedge loss taken out at Cerro Corona (US$6 million). Of the US$35 million, US$14 million was 
realised and US$21 million was unrealised.

Share-based payments for the Group increased by 93 per cent from US$14 million in 2016 to US$27 million in 2017 
due to a new allocation in 2017 as well as mark to market adjustments relating to the free cash flow margin portion. 
Long-term employee benefits decreased by 55 per cent from US$11 million to US$5 million due to mark to market 
adjustments relating to the share price portion of the incentive scheme. 

Other costs for the Group decreased by 10 per cent from US$49 million to US$44 million.

EXPLORATION AND PROJECT COSTS
Exploration and project costs increased by 21 per cent from US$92 million in 2016 to US$111 million in 2017 mainly due
to an increase at Salares Norte from US$39 million in 2016 to US$53 million in 2017 and the write-off of brownfields
exploration costs at the Australian operations which increased from A$64 million (US$48 million) in 2016 to A$69 million
(US$53 million) in 2017. This write-off is a book entry and non-cash. The balance of US$5 million mainly related to
expenditure at APP and FSE.

NON-RECURRING ITEMS
Non-recurring expenses of US$200 million in 2017 compared with US$17 million in 2016. 

The non-recurring expenses in 2017 included mainly:
- Cash generating unit impairment of R3.495 billion (US$278 million) at South Deep.  The impairment calculation is based
  on the 2017 life of mine plan using the following assumptions:
  - Gold price decreased from a long-term R600,000 per kilogram to R525,000 per kilogram;
  - Resource price decreased from R842 per ounce to R216 per ounce due to a decrease in the dollar price per ounce from
    US$60 per ounce to US$17 per ounce and a stronger Rand/Dollar exchange rate from R14.03 to R12.58.  This was partially
    offset by an increase in resource ounces of 3.8 million ounces from 25.2 million ounces to 29.0 million ounces;
  - Life of mine: 77 years; and
  - Discount rate: 13.5 per cent nominal.

The above assumptions do not affect the steady state production target of circa 500,000 ounces by 2022.  
- Silicosis provision raised (US$30 million);
- Write-off of parked fleet at Tarkwa (US$7 million);
- Retrenchment costs (US$9 million) mainly at Tarkwa (US$5 million), South Deep (US$2 million) and Damang 
  (US$2 million); 
- Write-off of Damang assets (US$3 million); and
- Impairment of investments (US$4 million).

This was partially offset by:

- Reversal of cash-generating unit impairment: gross US$53 million, tax US$15 million, net US$38 million at Cerro
  Corona. The impairment calculation is based on the 2017 life of mine plan using the following assumptions:
  - Gold price 2018: US$1,200 per ounce, 2019 onwards: US$1,300 per ounce;
  - Copper price 2018: US$2.50 per pound, 2019 onwards: US$2.80 per pound;
  - Resource price: US$41 per ounce;
  - Life of mine: 13 years; and 
  - Discount rate: 4.8 per cent.

The reversal of the impairment is due to a higher net present value as a result of the completion of a Pre-feasibility
study in 2017 extending the life of mine from 2023 to 2030 by optimising the tailings density and increasing tailings
capacity by using in-pit tailings after mining activities end.
- Reversal of the APP impairment (US$39 million); 
- Profit on the sale of Darlot (US$24 million/A$31 million); and
- Lower rehabilitation provisions of US$13 million mainly at St Ives due to a new mine closure plan 
  (A$15 million/US$11 million).

The non-recurring expenses in 2016 included mainly:

- Cash-generating unit impairment of US$66 million at Cerro Corona. The impairment calculation was based on the 
  2016 life of mine plan. The impairment was due to a reduction in gold and copper reserves due to depletion, a decrease 
  in the gold and copper price assumptions for 2017 and 2018, a lower resource price and an increase in the Peru tax rate; 
- Impairment of fleet relating to the disposal of fleet to the contractor and inoperable assets at Damang 
  (US$10 million);
- Retrenchment costs (US$12 million), mainly at Damang (US$10 million) and Granny Smith (A$2 million/US$1 million); and
- Other: US$5 million.

This was partially offset by:

- Profit on sale of royalties as part of the Maverix transaction (US$48 million);
- Profit on buy-back of the bond (US$18 million); and
- A decrease in rehabilitation provision (US$10 million) mainly due to decreases in base cases associated with a
  reduction in the diesel price at the Australian operations (A$10 million/US$7 million).

ROYALTIES
Government royalties for the Group decreased by 21 per cent from US$80 million in 2016 to US$63 million in 2017 mainly
due to the introduction of the sliding scale royalty formula in Ghana.

TAXATION
The taxation charge for the Group of US$172 million in 2017 compared with US$192 million in 2016. Normal taxation
increased from US$205 million to US$207 million.  The deferred tax credit of US$35 million in 2017 compared with 
US$13 million in 2016.

The taxation charge in 2017 appears significant in relation to the profit before tax due to the goodwill impairment of
US$278 million and reversal of impairment of APP of US$39 million which do not attract tax. Excluding those
adjustments, profit before tax would have been US$367 million.

In Peru, tax depreciation is recognised using the straight line depreciation method for the majority of assets over
periods longer than the life of mine. At 31 December 2016, Cerro Corona had a life of mine to 2023, and a significant
portion of the assets would not be fully depreciated for tax purposes by the end of the life of the mine. During 2017,
deferred tax of US$11 million was impaired relating to fixed asset additions in 2017. However, during 2017, the Group
completed a pre-feasibility study, which resulted in extending the life of mine from 2023 to 2030 by optimising the tailings
density and increasing tailings capacity by using in-pit tailings after mining activities end. Based on the Group's best
estimate at 31 December 2017, it is likely that Cerro Corona will earn taxable profits in order to utilise a portion of
the deductible temporary differences that reverse after 2023. As a result of the above, the Group recognised an amount
of US$15 million (2016: US$15 million impairment) related to deferred tax assets that were now recoverable at Cerro
Corona at 31 December 2017. 

The tax returns for Cerro Corona are filed in Peruvian Nuevo Sol (Soles) and the functional currency for accounting
purposes is the US dollar. For accounting purposes, unutilised tax allowances must be converted from Soles to dollars at
the closing rate at the period end. Therefore, the US dollar equivalent of unutilised taxation allowances fluctuate due
to movements in the exchange rate between the Peruvian Nuevo Sol and the US dollar. This resulted in a change in the
temporary taxation differences for non-monetary assets on translation. A deferred tax credit of US$4 million (2016: 
US$2 million charge) arose due to the strengthening of the exchange rate from 3.40 Nuevo Sol in 2016 to 3.27 Nuevo Sol 
in 2017 (3.38 Nuevo Sol in 2015 to 3.40 Nuevo Sol in 2016). It has no cash effect.

LOSS/EARNINGS 
Net loss attributable to owners of the parent of US$35 million or US$0.0.04 per share in 2017 compared with a profit
of US$163 million or US$0.20 per share in 2016.

Headline earnings attributable to owners of the parent of US$194 million or US$0.24 per share in 2017 compared with
headline earnings of US$208 million or US$0.26 per share in 2016. 

Normalised earnings of US$138 million or US$0.17 per share in 2017 compared with US$191 million or US$0.24 per share
in 2016. 

CASH FLOW 
Cash inflow from operating activities of US$832 million in 2017 compared with US$957 million in 2016, a 13 per cent
decrease.  This decrease was mainly due to an investment into working capital of US$64 million in 2017, as a result of 
the build-up of ore stockpiles at Tarkwa and St Ives, compared with US$3 million in 2016, as well as an increase in
royalties and taxation paid from US$235 million in 2016 to US$309 million in 2017. 

Dividends paid/advanced of US$69 million in 2017 compared with US$39 million in 2016.  Dividends paid to owners of the
parent increased from US$39 million in 2016 to US$63 million in 2017.  Dividends paid to non-controlling interest
holders of US$6 million in 2017 compared with US$nil million in 2016.  Dividends of US$5 million and US$1 million 
were paid to non-controlling interest holders at Tarkwa and Cerro Corona, respectively. 

Cash outflow from investing activities increased from US$868 million in 2016 to US$909 million in 2017 mainly due to
an increase in capital expenditure from US$650 million in 2016 to US$840 million in 2017 as planned.  This was mainly 
due to growth expenditure of US$115 million on the Damang reinvestment project and A$106 million (US$81 million) on
Gruyere.  Proceeds on disposal of assets of US$23 million in 2017 compared with US$2 million in 2016.  The US$23 million
related to proceeds on disposal of fleet at Damang.  Purchase of investments of US$80 million in 2017 compared with 
US$13 million in 2016.  In 2017, it related mainly to the purchase of shares in Gold Road (US$55 million/A$71 million) 
as well as the purchase of shares and options in Cardinal Resources (US$20 million/A$28 million).  Environmental 
payments increased from US$15 million in 2016 to US$17 million in 2017.  In 2016, purchase of Gruyere Gold project 
amounted to US$197 million (A$266 million).  

Cash outflow from operating activities less net capital expenditure and environmental payments of US$2 million in 2017
compared with an inflow of US$294 million in 2016.  This decrease was mainly due to higher capital expenditure and
negative working capital adjustments.  The US$2 million outflow in 2017 comprised: US$309 million net cash generated by 
the eight mining operations (after royalties, taxes, capital expenditure and environmental payments), less US$72 million 
of net interest paid, US$58 million for exploration mainly at Salares Norte (this excludes any mine based brownfields
exploration which is included in the US$309 million above), US$141 million (A$184 million) at Gruyere [capital expenditure 
of US$81 million (A$106 million) and an investment into working capital of US$60 million (A$78 million), mainly due to
cash calls on the balance of the deferred payment balance and stamp duty], as well as US$40 million on non-mine based
costs.  Included in the US$309 million above is US$115 million capital expenditure on the Damang reinvestment project and
US$17 million on South Deep growth capital expenditure. If these two amounts are excluded, then the mining operations
generated US$441 million. The US$294 million in 2016 comprised: US$444 million net cash generated by the eight mining
operations (after royalties, taxes, capital expenditure and environmental payments), less US$69 million of net interest 
paid, US$47 million for exploration mainly at Salares Norte (this excludes any mine based brownfields exploration which 
is included in the US$444 million above) and US$34 million on non-mine based costs.  Included in the US$444 million is 
US$8 million on South Deep growth capital expenditure. 

In the South Africa region at South Deep, capital expenditure decreased from R1,145 million (US$78 million) in 2016 to
R1,099 million (US$82 million) in 2017 due to lower expenditure on fleet. 

At the West Africa region, capital expenditure increased from US$206 million to US$313 million.  At Tarkwa, capital
expenditure increased from US$168 million to US$181 million due to higher fleet expenditure in 2017.  Capital 
expenditure in 2016 was mainly incurred on pre-stripping.  Capital expenditure at Damang increased from US$38 million 
to US$132 million mainly due to expenditure on the Damang reinvestment project (US$115 million). 

In the South America region at Cerro Corona, capital expenditure decreased from US$43 million to US$34 million mainly
due to lower expenditure on the construction of the tailings dam and waste storage facilities.

At the Australia region, capital expenditure decreased from A$431 million (US$322 million) in 2016 to A$423 million
(US$324 million) in 2017. At St Ives, capital expenditure increased from A$188 million (US$140 million) in 2016 to A$204
million (US$156 million) in 2017 due to expenditure on the new Invincible underground mine. At Agnew/Lawlers, capital
expenditure increased from A$94 million (US$70 million) to A$96 million (US$74 million) in 2017 mainly due to expenditure
on a crushing facility. At Darlot, capital expenditure decreased from A$29 million (US$21 million) to A$9 million
(US$7 million) in 2017 and at Granny Smith, capital expenditure decreased from A$121 million (US$90 million) in 2016 
to A$114 million (US$87 million) in 2017.

Net cash inflow from financing activities of US$84 million in 2017 compared with US$37 million in 2016. The inflow in
2017 related to a drawdown of US$780 million, partially offset by the repayment of US$696 million on offshore and local
loans. The inflow in 2016 related to a drawdown of US$1.299 billion and proceeds on the issue of shares of 
US$0.151 billion, partially offset by the repayment of US$1.413 billion of offshore and local loans.

The net cash outflow for the Group of US$62 million in 2017 compared with an inflow of US$87 million in 2016.  The
cash balance of US$479 million in 2017 compared with US$527 million in 2016. 

All-in sustaining and total all-in cost
The Group all-in sustaining costs decreased by 3 per cent from US$980 per ounce in 2016 to US$955 per ounce in 2017
mainly due to higher by-product credits, lower royalties and lower sustaining capital expenditure, partially offset by
higher net operating costs and lower gold sold.  Total all-in cost increased by 8 per cent from US$1,006 per ounce in 
2016 to US$1,088 per ounce in 2017 due to higher non-sustaining capital expenditure and higher exploration, feasibility 
and evaluation costs. 

In the South Africa region, at South Deep, all-in sustaining costs increased by 1 per cent from R570,303 per kilogram
(US$1,207 per ounce) to R574,406 per kilogram (US$1,340 per ounce) mainly due to higher net operating costs and lower
gold sold, partially offset by lower sustaining capital expenditure.  The total all-in cost increased by 3 per cent from
R583,059 per kilogram (US$1,234 per ounce) to R600,109 per kilogram (US$1,400 per ounce) due to the same reasons as for
all-in sustaining costs as well as higher non-sustaining capital expenditure.  

At the West Africa region, all-in sustaining costs decreased by 6 per cent from US$1,020 per ounce in 2016 to US$958
per ounce in 2017 mainly due to lower net operating costs and lower sustaining capital expenditure, partially offset by
lower gold sold.  Total all-in cost increased by 10 per cent from US$1,020 per ounce in 2016 to US$1,119 per ounce in
2017 mainly due to non-sustaining capital expenditure of US$115 million on the Damang reinvestment project.

At the South America region, all-in sustaining costs and total all-in cost decreased by 59 per cent from US$499 per
ounce to US$203 per ounce mainly due to higher by-product credits, lower capital expenditure and higher gold sold,
partially offset by higher net operating costs.  All-in sustaining costs and total all-in cost per equivalent ounce 
decreased by 12 per cent from US$762 per equivalent ounce to US$673 per equivalent ounce mainly due to the same reasons 
as above.

At the Australia region, all-in sustaining costs and total all-in cost decreased by 2 per cent from A$1,261 per ounce
(US$941 per ounce) in 2016 to A$1,239 per ounce (US$948 per ounce) in 2017 mainly due to lower net operating costs and
lower capital expenditure, partially offset by lower gold sold.

Balance sheet 
Net debt (borrowings plus the current portion of borrowings less cash and deposits) increased from US$1,166 million
for the year ended December 2016 to US$1,303 million for the year ended December 2017.  

Net debt/adjusted EBITDA
The net debt/adjusted EBITDA ratio of 1.03 at 31 December 2017 compared with 0.95 at the end of the financial year
ended 31 December 2016.  

EBITDA
Adjusted EBITDA for calculating net debt/EBITDA is based on the previous 12 months earnings, which is determined as
follows in US$ million:

Reconciliation between operating profit* and adjusted EBITDA for the year ended:                          
                                            2017       2016    
Operating profit*                          1,407      1,362    
Environmental rehabilitation interest         12         11    
Exploration and project costs               (111)       (92)   
Other                                        (44)       (49)   
                                           1,264      1,232    
*Operating profit is defined as revenue less net operating costs.

FREE CASH FLOW MARGIN
The free cash flow (FCF) margin is revenue less cash outflow divided by revenue expressed as a percentage. The FCF for
the Group for the year ended 2017 is calculated as follows:

                                                                                       US$'m       US$/oz    
Revenue*                                                                             2,632.1        1,259    
Less: Cash outflow                                                                   2,214.9       (1,059)   
AIC                                                                                 (2,274.2)      (1,088)   
Adjusted for                                                                                                 
Share-based payments (non-cash)                                                         27.4           13    
Long-term employee benefits (non-cash)                                                   5.1            2    
Exploration, feasibility and evaluation costs outside of existing operations            59.9           29    
Non-sustaining capital expenditure (Damang                                             196.0           94    
Reinvestment and Gruyere)                                                                                    
Revenue hedge                                                                           12.8            6    
Tax paid (excluding royalties which is included in AIC above)                         (241.9)        (116)   
Free cash flow**                                                                       417.2          200    
FCF margin                                                                               16%                 
Gold sold only - 000'ounces                                                          2,091.1                 
*   Revenue from income statement at US$2,810.8 million less revenue from by-products in AIC at US$178.7 million equals
    US$2,632.1 million.
**  Free cash flow does not agree with cash flows from operating activities less capital expenditure in the statement
    of cash flows on page 24 mainly due to working capital adjustments and non-recurring items included in the statement 
    of cash flows.

The FCF margin of 16 per cent in 2017 at a gold price of US$1,259 per ounce compared with 17 per cent in 2016 at a
gold price of US$1,241 per ounce.  The FCF margin for 2017 meets the Group's target of a 15 per cent FCF margin at a 
gold price of US$1,300 per ounce.

CONTINUING OPERATIONS
South Africa region 

South Deep project

                                             2017         2016    
Gold produced                 000'oz        281.3        290.4    
                                  kg        8,748