JOHANNESBURG, Oct. 29 /CNW/ - Gold Fields Limited (NYSE & JSE: GFI) today
announced normalised earnings excluding gains and losses on foreign exchange,
financial instruments, exceptional items, share of loss of associates after
taxation and discontinued operations for the September 2008 quarter of R120
million, compared with earnings of R943 million and R409 million for the June
2008 and September 2007 quarters respectively. In US dollar terms normalised
earnings excluding gains and losses on foreign exchange, financial
instruments, exceptional items, share of loss of associates after taxation and
discontinued operations for the September 2008 quarter were US$16 million,
compared with earnings of US$123 million and US$58 million in the June 2008
and the September 2007 quarters respectively.
September 2008 quarter salient features:
- Improved safety performance;
- Attributable gold production decreased as expected by 8 per cent to
798,000 ounces; half the shortfall is attributable to short term
safety related rehabilitation in South Africa;
- Cash cost at R153,461 per kilogram (US$617 per ounce) was similar to
guidance while NCE at R226,120 per kilogram (US$909 per ounce) was
8 per cent better than guidance;
- Rehabilitation of 95 2 West and 95 3 West access ramps at South Deep
completed by the end of September;
- First shipment of concentrate at Cerro Corona took place on
- Main shaft infrastructure rehabilitation at Kloof well on track for
completion by end December 2008;
- St Ives' Belleisle achieved full production.
Statement by Nick Holland, Chief Executive Officer of Gold Fields:
"During the September quarter Gold Fields delivered its best safety
performance ever, indicating that the intense focus on safety is delivering
results. However, despite the significant improvements across all measures, we
are not yet satisfied. Gold Fields remains committed to improving all its
safety metrics and safe production remains the number one priority.
In line with the guidance that we provided for Q1 F2009, our earnings
were reduced significantly by the safety related rehabilitation work at the
Driefontein, Kloof and South Deep mines in South Africa, as well as by higher
costs, driven largely by the annual wage increases in South Africa and the
higher power tariffs in both South Africa and Ghana, along with continued
inflation across the globe.
However, with the rehabilitation work in South Africa as well as the
international growth projects scheduled for completion by the end of December,
we remain on track to achieve our short term target of a run rate of
approximately 1 million attributable equivalent ounces of gold during the
March quarter next year, at an NCE of approximately US$725/oz at R/US$8.00.
A major milestone was achieved post quarter end with Cerro Corona making
its first shipment of concentrate."
Full results is available on the company website:
About Gold Fields
Gold Fields Limited is one of the world's largest unhedged producers of
gold with attributable production of 3,64 million ounces per annum from eight
operating mines in South Africa, Ghana and Australia. A ninth mine, Cerro
Corona Gold/Copper mine in Peru, commenced production in August 2008 at an
initial rate of approximately 375,000 gold equivalent ounces per annum. Gold
Fields aims to reach a production rate of approximately 4.0 million ounces per
annum during the March quarter of 2009.
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) and Dubai
International Financial Exchange (DIFX) New Euronext in Brussels (NYX) and
Swiss Exchange (SWX). For more information please visit the Gold Fields
website at http://www.goldfields.co.za.
For further information:
For further information: Willie Jacobsz, Direct: +27(0)11-644-2505,
Mobile: (857) 241-7127