Operating Profit Increases 6 Per Cent to R1.95 Billion (US$274 Million) Generating Net Earnings of R528 Million (US$74 Million)
August 01 2007 - 2:45AM
PR Newswire (US)
JOHANNESBURG, South Africa, August 1 /PRNewswire-FirstCall/ -- 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 ounces; - 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: http://www.goldfields.co.za/ DATASOURCE: Gold
Fields Limited CONTACT: 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, ; Nerina Bodasing, Tel:
+27-11-644-2630, Fax: +27-11-484-0639,
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