JOHANNESBURG, South Africa, Jan. 29 /CNW/ - Gold Fields Limited (JSE and
NYSE: GFI) today announced headline earnings for the December 2008 quarter of
R484 million, compared with earnings of R39 million and R456 million for the
September 2008 and December 2007 quarters respectively. In US dollar terms
headline earnings for the December 2008 quarter were US$55 million, compared
with earnings of US$5 million and US$67 million in the September 2008 and
December 2007 quarters respectively.
December 2008 quarter salient features:
- Attributable gold production of 839,000 ounces; 5 per cent higher
than the previous quarter and in line with guidance;
- Cash costs were flat at R153,893 per kilogram but decreased by 21 per
cent in dollar terms from US$617 per ounce in the September quarter
to US$487 per ounce in the December quarter due to the weaker rand
and Australian dollar;
- NCE increased by 8 per cent to R244,210 per kilogram this quarter but
decreased from US$909 per ounce to US$774 per ounce due to the weaker
rand and Australian dollar;
- Project capital expenditure at Cerro Corona and Tarkwa fully
completed in line with guidance;
- Cerro Corona achieved full production late in the December quarter;
- Kloof Main shaft infrastructure rehabilitation completed as planned;
- The CIL plant expansion at Tarkwa achieved rock into mill on 12
December 2008 and name plate capacity on 23 December 2008.
Interim dividend number 70 of 30 SA cents per share is payable on 23
Statement by Nick Holland, Chief Executive Officer of Gold Fields:
"As per the guidance provided to the market, the first half of F2009 was
extremely challenging for Gold Fields. During this period we had to make a
number of challenging decisions regarding the rehabilitation of our South
African mines, and complete our international growth projects.
We have also taken safety to a new level. While we consider this as
work-in-progress, we have already seen significant improvements on all safety
metrics. Particularly significant is the decline in the fatal injuries which,
to December, stands at eight compared with the total of 47 for F2008. Our
objective is to achieve a significant decline in serious injuries and to
eliminate all fatal injuries on our mines.
Despite the impact of the Christmas break on the South Africa operations,
and the decline in the copper price which negatively impacted the conversion
of copper into gold equivalent ounces at Cerro Corona, attributable production
for Q3 F2009 is expected to be approximately 960,000 ounces.
As a result of the lower copper price and its impact on the conversion of
Cerro Corona's copper into gold equivalent ounces, total gold production for
the Group is expected to stabilise at a run rate of approximately 975,000
equivalent ounces during the month of March.
The expected shortfall of 25,000 ounces against our targeted run rate of
one million ounces is entirely attributable to the conversion of Cerro
Corona's copper into gold equivalent ounces at the lower copper price.
However, the mine is expected to achieve its design capacity in actual gold
and copper production.
With our major growth projects in Ghana and Peru completed, capital
expenditure is expected to decline significantly. Combined with the expected
increase in production and our ongoing efforts to reduce our cash costs and
notional cash expenditure, this will enable us to benefit more from the higher
gold price and move the company to a cash positive position.
Electricity supply in South Africa, which constrained our operating
performance in F2008, has stabilised. More importantly, Gold Fields has
ameliorated the impact of power rationing by implementing several energy
In light of the current credit crisis, Gold Fields' balance sheet remains
robust with manageable debt levels and adequate liquidity.
For the remainder of F2009 and through F2010 our main priority is to
further improve our safety performance and to increase production by
optimising our existing mines."
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 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: Enquiries: Willie Jacobsz, Mobile:
+27(001)-857-241-7127; Nikki Catrakilis-Wagner, Mobile: +27(0)83-309-6720