Production and Cost Beat Guidance for the Quarter
JOHANNESBURG, Aug. 6 /CNW/ - Gold Fields Limited (Gold Fields) (JSE,
NYSE, NASDAQ Dubai: GFI) today announced normalised earnings excluding gains
and losses on foreign exchange, financial instruments, exceptional items and
share of profits and losses of associates after taxation for the June 2009
quarter of R949 million, compared with normalised earnings of R1,369 million
and R943 million for the March 2009 and the December 2008 quarters
respectively. In US dollar terms normalised earnings for the June 2009 quarter
were US$109 million, compared with of US$146 million and US$123 million for
the March 2009 and the December 2008 quarters respectively.
June 2009 quarter salient features:
- Attributable gold production increased by 4 per cent to 906,000
- Total cash costs decreased 6 per cent from R150,301 per kilogram (US
$471 per ounce) to R140,916 per kilogram (US$512 per ounce);
- Notional cash expenditure decreased 5 per cent from R213,403 per
kilogram (US$668 per ounce) to R203,042 per kilogram (US$738 per
- Commenced construction of Athena, the fourth underground mine at St
Ives, in July.
- Offer post quarter end to be made for Glencar which owns the Komana
project in Mali. 29.9 per cent acquired to date;
- The 19.9 per cent stake in Sino Gold sold for a consideration of US
$282 million and closed in July;
- Net debt declines from R7.7 billion to R6.1 billion.
A final dividend of 80 SA cents per share is payable on 31 August 2009,
giving a total dividend for financial 2009 of 110 SA cents per share.
Statement by Nick Holland, Chief Executive Officer of Gold Fields:
"The final quarter of F2009 was the third consecutive quarter of strong
and improved operational performance for Gold Fields against our strategic
objectives of delivering a step change in our safety performance; increasing
our production base; and maintaining rigorous cost control aimed at improving
the generation of free cash flow.
F2009 has, by a considerable margin, been the best safety year in the
history of Gold Fields. Never the less, I regret to report eight fatal
injuries for the quarter. Seven of these were seismically related and occurred
in a two-week period late in the quarter, when a wave of seismicity struck the
West Wits region.
These accidents bring the total number of fatalities for F2009 to 21,
compared with 47 during F2008, which represents a 55 per cent improvement year
I deeply regret this loss of life and it remains my personal objective,
and that of every person in Gold Fields, to eliminate all serious and fatal
accidents on our mines, and not to mine if we cannot mine safely. While this
is a profound commitment to make in an industry characterised by high levels
of risk, particularly in the seismically active deep level mining environment
in South Africa, it is a moral and commercial imperative for the
sustainability of our industry.
Despite the impact of the unusual incidence of seismicity which affected
the production of both Kloof and Driefontein, Gold Fields had a strong
quarter, beating guidance and increasing production by 4 per cent over
Q3F2009. This brings our total increase in production over the last three
quarters to approximately 15 per cent.
Particularly pleasing has been the improvements at Beatrix and Tarkwa
which increased production by 29 and 8 per cent respectively. Both of these
mines have now largely resolved the issues that affected production in
previous quarters, and Tarkwa should increase production further in the
September quarter. Cerro Corona also had a particularly strong quarter on the
back of improved production and a stronger copper price, increasing production
on an equivalent ounce basis by approximately 37 per cent.
As a consequence of the stronger rand, our operating margin decreased
from 47 per cent to 43 per cent. However, we continued to generate positive
free cash flow on the back of increased production and good cost management.
We have decided to write down the investment in Rusoro to its market
value at year end notwithstanding our view that its inherent value is
significantly greater than its current market value. This is the main
contributing factor towards the net loss during the quarter.
During F2010 we will remain focused on improving our safety performance;
increasing our focus on our people; and continue the increasing production
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 steady state production of approximately 4 million
ounces per annum from nine operating mines in South Africa, Peru, Ghana and
Australia. The company has total attributable ore reserves of 83 million
ounces and mineral resources of 251 million ounces. Gold Fields is listed on
the JSE Limited (primary listing), New York Stock Exchange (NYSE), NASDAQ
Dubai Limited (NASDAQ Dubai), NYSE Euronext in Brussels (NYX) and Swiss
Exchange (SWX). For more information please visit the Gold Fields website at
For further information:
For further information: Enquiries: Willie Jacobsz, Mobile: (857)
241-7127; Nikki Catrakilis-Wagner, Mobile: +27(0)83-309-6720