Gold Fields Limited: Q3 F2006 Results - Quarter Ended 31 March 2006
May 02 2006 - 9:06AM
PR Newswire (US)
Attributable Earnings Increase 84 per cent on the Back of Increased
International Production and an Improved Gold Price JOHANNESBURG,
South Africa, May 2 /PRNewswire-FirstCall/ -- Gold Fields Limited
(NYSE:GFI)(JSE:GFI) today announced March 2006 quarter net earnings
of R483 million compared with R262 million in the December 2005
quarter and a loss of R2 million for the March quarter of 2005. In
US dollar terms net earnings for the March 2006 quarter equated to
US$76 million compared with US$40 million in the December 2005
quarter and US$0.2 million for the March quarter of 2005. Net
earnings excluding gains and losses on financial instruments and
foreign debt net of cash and exceptional items were R376 million
(US$60 million) for the March 2006 quarter compared with R275
million (US$42 million) for the December 2005 quarter. March 2006
quarter highlights: - Net earnings up 84 per cent to R483 million
on the back of increased international production and an improved
gold price; - Average gold price up 8 per cent to R109,500 per
kilogram and 15 per cent in US dollar terms to US$555 per ounce; -
Attributable gold production down 2 per cent to 1,023,000 ounces,
despite extended Christmas break and in line with guidance; - Total
cash costs up 2 per cent to R73,378 per kilogram - US$372 per ounce
(R67,960 per kilogram - US$344 per ounce - when calculated on same
basis as peer group); - Acquisition of Bolivar Golds' Choco 10 mine
in Venezuela completed, effective 1 March 2006; and - Norilsk
Nickel disposed of its entire 20 per cent stake in Gold Fields
during the quarter. Ian Cockerill, Chief Executive Officer of Gold
Fields said: "Gold Fields produced another solid set of results,
with overall production and total cash costs impacted only
marginally by the extended Christmas break at the South African
operations. All operations maintained good cost control with the
bottom-line projects delivering results. As forecast, the declines
at the South African operations (mainly at Kloof) were largely
offset by a healthy improvement at the international operations.
During the quarter Gold Fields assumed control of the newly
acquired Choco 10 mine. The focus for the foreseeable future will
be to introduce Gold Fields standards to all facets of the
operation thus providing a stable platform for future growth. The
continued strength of the gold price throughout the quarter is
reflected in our improved operating margin and significantly
increased earnings, and with expectations of a continued higher
gold price increased earnings should continue." Stock data JSE
Limited - (GFI) Range - Quarter ZAR111.80 - ZAR146.80 Number of
shares in issue Average Volume - at end - 2,244,707 shares / day
March 2006 494,075,334 Quarter - average for the quarter
493,790,542 NYSE - (GFI) Range - Free Float 100% Quarter US$18.16 -
US$24.16 Average Volume - Quarter 1,934,868 shares / day ADR Ratio
1:1 Bloomberg / Reuters GFISJ / GFLJ.J South African Rand Salient
features Nine months to Quarter Restated Restated March March March
Dec March 2005 2006 2005 2005 2006 Gold 97,761 95,043 33,845 32,342
31,809 kg produced* Total cash 65,443 72,597 64,957 71,659 73,378
R/kg costs 35,655 36,715 12,789 12,089 12,738 0 Tons milled 82,885
100,887 81,952 101,184 109,500 R/kg Revenue Operating 197 206 184
210 202 R/ton costs Operating 1,630 2,699 537 958 1,187 Rm profit
Operating 19 26 18 28 32 % margin Net 155 784 (2) 262 483 Rm
earnings 31 159 (1) 53 98 SA c.p.s. Headline 118 743 (4) 261 446 Rm
earnings 24 150 (1) 53 90 SA c.p.s. Net earnings excluding gains
and losses on financial instruments and foreign debt net of cash
and exceptional 183 694 115 275 376 Rm items 37 141 23 56 76 SA
c.p.s. *Attributable - All companies wholly owned except for Ghana
(71.1%) and Bolivar (95%). Note - restated figures are due to the
adoption of IFRS 2, share based payments. Salient features United
States Dollars Quarter Nine months to Restated Restated March Dec
March March March 2006 2005 2005 2006 2005 Gold produced* (000) oz
1,023 1,040 1,088 3,056 3,143 Total cash costs $/oz 372 341 340 353
332 Tons milled 000 12,738 12,089 12,789 36,715 35,655 Revenue $/oz
555 482 428 490 420 Operating costs $/ton 33 32 31 32 32 Operating
profit $m 190 147 90 422 266 Operating margin % 32 28 18 26 19 Net
earnings $m 76 40 - 123 25 US c.p.s. 16 8 - 25 5 Headline earnings
$m 71 40 - 116 22 US c.p.s. 15 8 - 24 4 Net earnings excluding
gains and losses on financial instruments and foreign debt net of
cash and exceptional items $m 60 42 21 109 36 US c.p.s. 12 9 4 22 7
*Attributable - All companies wholly owned except for Ghana (71.1%)
and Bolivar (95%). Note - restated figures are due to the adoption
of IFRS 2, share based payments. To view the full results please
visit:
http://www.goldfields.co.za/Investor/Quarterly_Reports/FY_2006/march_2006/defa
ult.asp Forward Looking Statements Certain statements in this
document constitute "forward looking statements" within the meaning
of Section 27A of the US Securities Act of 1933 and Section 21E of
the US Securities Exchange Act of 1934. Such forward looking
statements involve known and unknown risks, uncertainties and other
important factors that could cause the actual results, performance
or achievements of the company to be materially different from the
future results, performance or achievements expressed or implied by
such forward looking statements. Such risks, uncertainties and
other important factors include among others: economic, business
and political conditions in South Africa; decreases in the market
price of gold; hazards associated with underground and surface gold
mining; labour disruptions; changes in government regulations,
particularly environmental regulations; changes in exchange rates;
currency devaluations; inflation and other macro-economic factors;
and the impact of the AIDS crisis in South Africa. These forward
looking statements speak only as of the date of this document. The
company undertakes no obligation to update publicly or release any
revisions to these forward looking statements to reflect events or
circumstances after the date of this document or to reflect the
occurrence of unanticipated events. DATASOURCE: Gold Fields Limited
CONTACT: Investor relations, South Africa, Willie Jacobsz,
Telephone: (+27)(11)-644-2460, Facsimile: (+27)(11)-484-0639,
e-mail: , Nerina Bodasing, Telephone: (+27)(11)-644-2630,
Facsimile: (+27)(11)-484-0639, e-mail: ; North America, Cheryl A
Martin, Telephone: (+1)(303)-796-8683, Facsimile:
(+1)(303)-796-8293, e-mail:
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