50NT Hsbc Bk. 25

RNS No 5948p
GOLD FIELDS LIMITED
5 August 1999


YEAR END AND  FOURTH QUARTER F1999 RESULTS

Gold Output up 7%

Cash costs - downward trend to US$210/oz

Oryx generates cash

Tarkwa shows substantial improvement and reports profits

Johannesburg, 5 August 1999:  Gold Fields Limited today announced that, during
the fourth quarter, Gold output increased by seven per cent to 962 000 ounces.
This increase in production more than offset the four per cent decline in gold
price received (R54 510 per kilogram) and, as a result, revenue improved to R1
604 million. A four per cent increase in working costs to R1 272 million,
reduced operating income by R28 million (eight per cent) to R332 million.

Earnings before exceptional items declined by R61 million to R146 million (29
per cent) and earnings per share before exceptional items to 33 cents (SA)
from 46 cents (SA), primarily as a result of substantially lower interest
income and higher capital expenditures.

Gold output was up at Kloof (30%), Tarkwa (26%), Oryx (19%), St Helena (12%)
and Leeudoorn (4%), and marginally down at Beatrix and Driefontein. The nine
per cent decline in gold output at Libanon was due to a lower yield caused by
the withdrawal, for safety reasons, from mining high grade VCR pillars at the
Harvie-Watt shaft, and a setback in ore resource management. The latter
situation has been resolved.

Working costs at Kloof have been restated to exclude capital development at
No. 4 shaft. Until now these costs were incorrectly included in operating
costs. Net expenditure of R34.8 million for the current quarter (March 1999
R33.7 million, year ended June 1999 R133.8 million) was capitalised and
revenue and working costs reduced accordingly. The increase in costs at Tarkwa
relates to the increase in throughput. Increased costs at Driefontein, Kloof
and Beatrix relate largely to higher levels of mining activity and sundry
labour and other costs.

Oryx reduced its working costs by 14 % to R97 million, largely as a result of
a rationalisation of the cost structure of the mine which was necessitated
after planned monthly tonnage was reduced from
120 000 tons to 90 000 tons. An operational review determined that lower
throughput and selective mining could achieve lower overall cost per ounce
produced and accelerate the achievement of sustainable profits at R50 000 per
kilogram.

Capital expenditure at Driefontein returned to planned levels (R60 million).

Cash costs for the group were reduced by three per cent to US$210 per ounce
and total costs, including capital expenditure, by one per cent to US$248 per
ounce. Cash costs at Kloof Division reduced by approximately 21per cent to
US$172 per ounce, due to increased production during the quarter. Leeudoorn,
Beatrix and Tarkwa maintained their cash costs below US$200 per ounce.

For the financial year earnings before exceptional items were R788 million
which, for the first six months ended 31 December 1998, included the results
attributable to Gold Fields as it existed prior to the merger with
Driefontein. For the six months ended 30 June 1999 it included the results
attributable to the new Gold Fields Limited consequent upon the merger with
Driefontein, which was effective on January 1, 1999. Earnings per share before
exceptional items for the financial year were 243 cents (SA). The weighted
number of shares in issue for the year was 324.8 million, taking into account
the Driefontein merger. Profit for the year, net of exceptional items, is R688
million and earnings per share, weighted as above, is 212 cents (SA) per
share.

In describing the results of the first full financial year (F1999) of Gold
Fields Limited, Chris Thompson, Chairman and Chief Executive Officer said:
"The year has been characterised by a turnaround to profit based on an
increased Rand gold price combined with the cost benefits of extensive
rationalisation. A sound foundation had been laid for increased productivity
and cost reduction over the next three years."

Tarkwa, which during the month of June achieved cash costs of below US$160 per
ounce, reported its first profits during the quarter under review. Thompson
observed that Tarkwa had considerable potential for further reserve growth and
production increases. Oryx also broke even for the first time during the
quarter and, for accounting purposes, will be regarded as an operating mine
from the September quarter. 

Financial
In order to conform to international norms, and to further facilitate
international competitiveness, Gold Fields will, as from July 1, 1999, change
its accounting policies to International Accounting Standards (IAS) and will
in future report only on this basis.

Due to the fact that the Number 9 and 10 shaft complexes at Driefontein are no
longer in operation, and the fact that these assets are not depreciated, it
has been decided to fully provide against the cost of these assets, being R1.1
billion. The amount net of tax is R595 billion. In addition goodwill, which
arose on the acquisition of AngloGold's interest in Driefontein has been
written off. Due to a decline in the Rand gold price a decision was taken to
write down the asset value of Oryx from R3.1 billion to R2 billion. The net
effect after tax is R875 million. The company's other listed investments have
also been written down to market value.

These adjustments impact the International Accounting Standards (IAS)
financial statements only and will result in a more conservative balance sheet
on adoption of the new accounting policies from July 1, 1999.

An announcement  about the payment of a final dividend for the year will be
made before the end of August 1999.

The acquisition of AngloGold's 21% interest in Driefontein for R1.3 billion
cash has been fully funded from internal sources. The Group is now debt free
and has cash at hand of approximately R300 million.

 Strategies
While the Group remains optimistic about a recovery in the dollar gold price,
the recent decline in the gold market have precipitated a revision of the
company's strategies from an expansionist and international focus to a more
defensive strategy of optimising existing operations through investments in
cost reductions and productivity improvements.

Contingency plans for a US$255 and a US$ 230 per ounce gold price environment
are being developed and Resources and Reserves are in the process of being
restated at prices of R55 000 per kilogram. 

While the business development and exploration functions have been reorganised
to be internationally competitive during the past quarter, activity in this
sphere are expected to slow down because of the current gold price.

All capital expenditure programmes in the group are similarly being
scrutinised from an investment perspective.

"F2000 will see a defensive focus on optimising existing operations", said
Thompson. "By 'hunkering down we will not only position ourselves to best
navigate the stormy waters of this low point in the gold cycle, but also to
take aggressive advantage of any recovery that may follow," he said.

Outlook
Tom Dale, Managing Director, said that steady progress is being made with
restructuring to improve safety, productivity and cost control. The company
during the June quarter appointed its one thousandth panel miner and this
progress will enable Driefontein and Kloof to restructure their organisations
during the September quarter to establish lower cost bases. These efforts will
be offset to some degree by the annual wage increases.

Based on forecasts for the September quarter Libanon will incur losses, but
management strongly believes that planned operational changes will return the
mine to profitability at a gold price of R50 000 within the next six months.

Oryx, which broke even for the first time during the June quarter, will be
negatively impacted during the September quarter as a result of a two-week
strike early in the quarter, before returning to profitability.


Contact: 
Keith Irons, Bankside Consultants, London      0171 220 7477 / 0585 356 639


END

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