|Gold Fields Ltd. - GFI.n is one of the world’s largest producers of gold with annual production of 2.1 million gold equivalent ounces from eight operating mines in Australia, Ghana, Peru and South Africa at AISC of $1,007.|
Gold Fields has total gold equivalent Mineral Reserves of 80.6 million ounces and Mineral Resources of 217 million ounces.
" Gold Fields Limited (Gold Fields) (JSE, NYSE: GFI) is pleased to announce that it has concluded a development agreement with the Government of Ghana for both the Tarkwa and Damang mines. The highlights of the agreement include:
- A reduction in the corporate tax rate from 35.0% to 32.5%, effective 17 March 2016.
- A change in the royalty rate from a flat 5% of revenue to a sliding scale royalty based on the gold price (as per table below), with effect from 1 January 2017.
|Royalty rate||Gold price|
|3.0%||US$0 - 1,300/oz|
|3.5%||US$1,300 - 1,449.99/oz|
|4.0%||US$1,450 - 2,299.99/oz|
|5.0%||US$2,300/oz - unlimited|
The term of the agreement, effective from 17 March 2016, will be for a period of 11 years for Tarkwa and nine years for Damang, each renewable for an additional five years.
Ghana continues to be a key region for Gold Fields and we commend the Government of Ghana for creating a fair and competitive environment in the country.