JOHANNESBURG, South Africa, Jan. 31 /CNW/ - Gold Fields Limited (NYSE &
JSE: GFI) today announced net earnings for the December 2007 quarter of R1,938
million, compared with restated net earnings of R429 million and R767 million
for the September 2007 and the December 2006 quarters respectively. In US
dollar terms net earnings for the December 2007 quarter were US$281 million,
compared with restated earnings of US$60 million and US$104 million for the
September 2007 and the December 2006 quarters respectively.
December 2007 quarter salient features:
- Attributable gold production, of 960,000 ounces 3 per cent lower than
the previous quarter;
- Net earnings and normalised earnings increase by 350 per cent and 48
per cent respectively;
- Sale of Essakane and Venezuelan assets successfully concluded
releasing R4,174 million (US$615 million) in value;
- Draft three of the South African royalty bill published during the
quarter, if passed in its present form, would result in a significantly
higher royalty than originally proposed at current gold prices.
Statement by Ian Cockerill, Chief Executive Officer of Gold Fields:
"During the December quarter we saw a welcome recovery at our
Regrettably the South African operations, in particular Driefontein, were
adversely affected by a number of safety related work stoppages. We are fully
committed to stop this through a resolute focus on safe production, which is
our highest priority.
Despite an overall decline of three per cent in production Gold Fields
saw a welcome four per cent improvement in its operating margin, on the back
of the improved gold price. This is a trend which we hope to maintain and
improve upon through continued focus on productivity and costs. Cost control
will be paramount in the face of ongoing input cost pressures on all fronts
precipitated by inflation trends and the resource boom. Current power
shortages in South Africa will impact production in the March quarter and into
the foreseeable future.
This quarter saw some good results on the cost side of our business with
total cash costs increasing by only three per cent, despite the lower
production and ongoing cost pressures.
Production at the Cerro Corona project is forecast to commence by the
middle of 2008 as previously announced. This project will add more than
400,000 high margin ounces per year to our production profile."
The full results are available on the Gold Fields website:
For further information:
For further information: Willie Jacobsz, Tel: +27(0)11-644-2460, Mobile: