JOHANNESBURG, South Africa, Aug. 1 /CNW/ - Gold Fields Limited (NYSE: GFI;
JSE: GFI) today announced net earnings for the June 2007 quarter of
R528 million compared with R370 million in the March 2007 quarter and
R645 million for the restated June quarter of 2006. In US dollar terms net
earnings for the June 2007 quarter were US$74 million compared with
US$52 million in the March 2007 quarter and US$101 million for the restated
June quarter of 2006.
June 2007 quarter salient features:
- Attributable gold production increased 3 per cent to 1,015,000
- Average gold price increased marginally to R152,825 per kilogram and
increased 3 per cent in US dollar terms to $670 per ounce;
- Total cash costs and operating margin were similar at R92,273 per
kilogram (US$405 per ounce) and 38 per cent respectively.
Financial year salient features:
- Attributable gold produced of 4.02 million ounces for the year
compared with 4.07 million ounces in the previous year;
- Total cash costs at US$376 per ounce up 14 per cent due to
significant commodity price and labour cost increases;
- Earnings increased 53 per cent from R1,544 million to R2,363 million
and from US$241 million to US$328 million;
- R20 billion acquisition of South Deep completed, together with
successful equity raising to meet funding requirements and to retire
legacy gold derivative;
- Growth and life extension projects of R6 billion commenced at Tarkwa,
Driefontein and Kloof.
- Cerro Corona progressing as scheduled with first concentrate shipment
scheduled for the March 2008 quarter.
Final dividend number 67 of 95 SA cents per share, giving a total
dividend of 185 SA cents per share for the year.
Ian Cockerill, Chief Executive Officer of Gold Fields, said:
"Gold Fields has delivered an improved set of results for the June
quarter with attributable production increasing 3 per cent to over 1 million
ounces. All of the production increases emanated from the South African
operations despite a number of holiday interruptions during the quarter while
the international operations maintained production levels. We were pleased to
maintain unit costs for the quarter despite ongoing input cost pressures. A
marginal improvement in the rand gold price received together with the higher
production, resulted in revenue increasing 2 per cent to R5.1 billion and
operating profit improving 6 per cent to just under R2 billion.
For financial 2007 profitability increased despite stable production and
the challenges faced with rising costs across the industry. Revenue increased
35 per cent, operating profit increased 51 per cent and earnings remained
robust with a 53 per cent increase. This strong financial performance is
indicative of the leverage that an unhedged gold company, with a portfolio of
quality assets, can provide in a rising gold price environment. The quality of
our asset base remains key to being able to consistently deliver robust
returns to our shareholders through the cycle.
Financial 2008 will be a year of consolidation, bedding down the recent
South Deep transaction, bringing to account the Cerro Corona project and
addressing our investment in Venezuela. Increasing production and adherence to
cost control is fundamental to our shareholders so that they see the benefit
of a higher gold price in improved earnings growth."
The full results are available on the Gold Fields website:
For further information:
For further information: Gold Fields Limited, Reg. 1968/004880/06, 24 St
Andrews Road, Parktown, 2193; Postnet Suite 252, Private Bag X30500, Houghton,
2041, South Africa; Enquires, Willie Jacobsz, Tel: +27-11-644-2460, Fax:
+27-11-484-0639, firstname.lastname@example.org; Nerina Bodasing, Tel:
+27-11-644-2630, Fax: +27-11-484-0639, Nerina.email@example.com