Operating Profit of R1.7 Billion and Normalised Earnings of R400 Million in the Quarter Ended 30 September 2007



    JOHANNESBURG, South Africa, Oct. 25 /CNW/ - Gold Fields Limited (NYSE,
JSE & DIFX: GFI) today announced earnings for the September 2007 quarter of
R429 million compared with R528 million in the June 2007 quarter and R698
million for the September quarter of 2006. In US dollar terms net earnings for
the September 2007 quarter were US$60 million compared with US$74 million in
the June 2007 quarter and US$98 million for the September quarter of 2006.

    
    September 2007 quarter salient features:

    -   Attributable gold production maintained at over 1 million ounces;
    -   Total cash costs increased 7 per cent from R92,273 per kilogram
        (US$405 per ounce) to R99,227 per kilogram (US$435 per ounce) due to
        higher labour costs at the South African operations and lower
        production at St Ives and Tarkwa;
    -   Post quarter end an agreement was reached to sell our stake in
        Essakane for a consideration of US$200 million and our Venezuelan
        assets for an indicative amount of US$532 million;
    -   Cerro Corona on track for production of concentrate during the March
        2008 quarter.
    

    Statement by Ian Cockerill, Chief Executive Officer of Gold Fields:
    "Gold Fields delivered a steady quarter, with attributable gold
production again above one million ounces. Production at the South African
operations increased from 685,000 ounces to 689,000 ounces while attributable
production at the international operations decreased from 330,000 ounces to
312,000 ounces. Despite known cost pressures due to wage settlements in South
Africa and ongoing pressures on input costs throughout the Group, unit costs
rose at an unacceptably high 7 per cent quarter on quarter. This was also
influenced by the decline in production from both Tarkwa and St. Ives but
improved performance from these two mines over the next few quarters should
see a reversal in this trend.
    After the close of the quarter we announced that an agreement had been
reached to sell our 60 per cent stake in the Essakane project to Orezone
Resources Inc. for US$200 million, as well as an agreement for the sale of our
assets in Venezuela to Rusoro Mining Ltd. for an indicative consideration of
some US$532 million. This consideration is made up of mainly cash and shares
in Rusoro Mining Ltd., the value of which is based on the prevailing share
price in Rusoro Mining Ltd. at the time of the announcement. These disposals
were made as part of our ongoing strategic evaluation of our capital asset
portfolio aimed at maximising its underlying value and do not diminish our
commitment to international growth. The proceeds from these sales will be used
to create value for shareholders. A range of options are under consideration,
including, inter alia, the reduction of debt and the funding of our extensive
capital programme."

    The full results are available on the Gold Fields website:
http://www.goldfields.co.za





For further information:

For further information: Nerina Bodasing, Tel +27-11-644-2630, Fax
+27-11-484-0639, Nerina.bodasing@goldfields.co.za; North America, Willie
Jacobsz, Tel +27-11-644-2460, Fax +27-11-484-0639, williej@goldfields.co.za


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890