JOHANNESBURG, Aug. 1 /CNW/ - Gold Fields Limited (NYSE & JSE: GFI) today
announced net earnings for the June 2008 quarter of R843 million, compared
with earnings of R1,248 million and R528 million for the March 2008 and the
June 2007 quarters respectively. In US dollar terms net earnings for the June
2008 quarter were US$105 million, compared with earnings of US$167 million and
US$74 million for the March 2008 and the June 2007 quarters respectively.
June 2008 quarter salient features:
- Attributable gold production increased by 5 per cent to
- Total cash costs steady at R125,359 per kilogram (US$502 per ounce);
- Notional Cash Expenditure (operating cost plus capital expenditure)
at R217,065 per kilogram (US$869 per ounce) due to high inward
investment in growth projects;
- Operating profit increased 6 per cent to R2.72 billion and normalised
earnings of R911 million generated;
- Commissioning underway at Cerro Corona and Tarkwa's CIL expansion due
for completion in the December quarter.
Financial year salient features:
- Attributable gold production of 3.64 million ounces compared with
3.97 million ounces in the previous year;
- Total cash costs increased from R86,623 per kilogram (US$374 per
ounce) to R111,315 per kilogram (US$476 per ounce) due to the lower
production and cost pressures driven by the resource boom;
- Essakane and Venezuelan assets sold in the December quarter 2007,
releasing R4.2 billion (US$615 million) in value;
- US$438 million invested in growth projects in Peru and Ghana;
- US$121 million invested in increasing our ownership in Sino Gold and
Conquest Mining to 19.9 per cent and 19.1 per cent respectively.
Final dividend number 69 of 120 SA cents per share is payable on
25 August 2008, giving a total dividend for financial 2008 of 185 SA cents per
Statement by Nick Holland, Chief Executive Officer of Gold Fields:
"After a particularly difficult start to the quarter, with the accident
at the South Deep Gold Mine in which nine of our colleagues tragically lost
their lives, the people of Gold Fields rallied together to show their mettle.
Galvanized by my statement that 'we will not mine if we cannot mine safely',
they took control of the safety situation on all of our mines, where a new
safety culture is rapidly taking root.
"Against this backdrop, Gold Fields staged a welcome recovery with
production increasing by 5 per cent from Q3 which was negatively impacted by
power interruptions, while maintaining a tight control on costs, despite the
continued inflationary pressures world-wide. Notional Cash Expenditure
(operating cost and capital expenditure) for the quarter increased from US$843
per ounce in Q3 to US$869 per ounce, largely on the back of increased capital
expenditure at the international operations. The Group's NCE is expected to
decline significantly early in calendar 2009 as capital expenditure on the
Cerro Corona project is completed and the mine becomes operational along with
the Tarkwa expansion.
"A comprehensive review of infrastructure across our operations,
following from the heightened safety awareness across the Group since my
appointment, has resulted in urgent rehabilitation being necessary at the Main
shaft infrastructure at Kloof and in particular replacement of a significant
portion of the steelwork below 17 level. As a consequence, the operation of
this shaft is to be suspended for approximately six months while the necessary
maintenance is carried out. Kloof's production over this period is expected to
reduce by between 25 and 35 per cent. Operations will continue at this shaft
on a 1 day a week basis to maintain integrity of faces and ore passes.
Driefontein's production will also decline in the September quarter by
approximately 400 kilograms due to a need to catch up safety critical
secondary support and South Deep is already in the process of reinstalling
primary support at its 95 2 West and 95 3 West ramps. Production at
Driefontein and South Deep should return to approximately 6,800 kilograms per
quarter and 1,500 kilograms per quarter respectively by the December quarter
and Kloof's production should be restored to 2,000 kilograms per month by
"Notwithstanding the short-term safety-related actions to be initiated in
South Africa as referred to in the preceding paragraph, long awaited growth
projects will be commenced and brought to full production over the next two
quarters. In particular, the completion of the new Cave Rocks and Belleisle
underground mines at St Ives; the addition of Cerro Corona and the completion
of the Tarkwa CIL plant expansion during Q2, position Gold Fields well to
achieve its short term target of a production rate of approximately 4 million
ounces of gold per annum at an NCE of US$700 per ounce to US$725 per ounce at
R/US$8.00, early in calendar 2009."
The full results are available on the Gold Fields website:
About Gold Fields
Gold Fields Limited is one of the world's largest unhedged producers of
gold with attributable production of more than four million ounces per annum
from eight operating mines in South Africa, Ghana and Australia.
A ninth mine, the Cerro Corona Gold/Copper mine in Peru, is expected to
commence production by mid 2008 at an initial rate of approximately 400,000
gold equivalent ounces per annum.
The company has total attributable ore reserves of 92 million ounces and
mineral resources of 252 million ounces.
Gold Fields employs some 53,000 permanent employees across its operations
and is listed on the JSE Limited South Africa (primary listing), the New York
Stock Exchange (NYSE) and the Dubai International Financial Exchange (DIFX).
All of Gold Fields' operations are ISO14001 certified. For more information
please visit the Gold Fields website at http://www.goldfields.co.za.
For further information:
For further information: Willie Jacobsz, Tel: +508-358-0188, Mobile:
+857-241-7127, Gold Fields Limited, 24 St Andrews Road, Parktown, 2193,
Postnet Suite 252, Privte Bag X30500, Houghton, 2041, South Africa,
+27-11-644-2400, Fax +27-11-484-0639