GFI Gold Fields Ltd

JOHANNESBURG, South Africa, October 26 /PRNewswire-FirstCall/ -- Gold Fields Limited (NYSE:GFI)(JSE:GFI) today announced net earnings for the September 2006 quarter of R698 million compared with R618 million in the June 2006 quarter and R64 million for the September quarter of 2005. In US dollar terms net earnings for the September 2006 quarter were US$98 million compared with US$97 million in the June 2006 quarter and US$10 million for the September quarter of 2005. Net earnings excluding gains and losses on financial instruments and foreign debt net of cash and exceptional items were R702 million (US$99 million) for the September 2006 quarter compared with R550 million (US$86 million) for the June 2006 quarter, an increase of 28 per cent. September 2006 quarter highlights: - Attributable gold production decreased marginally to just over one million ounces; - Ore Reserve Development (ORD) costs, previously included in operating costs at the South African operations, are now being capitalised and amortised; - Total cash costs US$350 per ounce (June quarter - US$345 per ounce restated); - Net earnings of R698 million (US$98 million), increase for the fifth consecutive quarter; - National power shortages in Ghana being managed at Tarkwa and Damang; - Growth projects at Driefontein (9 shaft extension) and Kloof (KEA) commence; - Gold Fields to acquire 50 per cent of South Deep from Barrick, increase Western Areas' stake to 34.7 per cent with an option to go to 41 per cent, and make a general offer to Western Areas' shareholders. Ian Cockerill, Chief Executive Officer of Gold Fields, said: "Gold Fields has delivered another strong performance for the first quarter of fiscal 2007, with net earnings increasing 13 per cent from R618 million to R698 million. Despite the slight drop in production revenues increased to R4.7 billion from R4.4 billion as the rand gold price received improved 10 per cent to R142,035 per kilogram. Operating profit increased a further 6 per cent to R2.0 billion while group margins remained buoyant at 42 per cent. Cost pressures continue to remain a challenge in the current commodity cycle and we will have to be vigilant to ensure that current gold prices, as far as possible, report to the bottom line. We continue with our focus on inward investment and optimisation of our ore bodies. We are investing R25 billion in South Africa, through the depth extension projects at Kloof and Driefontein and our bid for the South Deep asset. These investments will provide Gold Fields with a solid foundation from which to pursue our commitment to international growth." The full results are available on the Gold Fields website: http://www.goldfields.co.za/ DATASOURCE: Gold Fields Limited CONTACT: ENQUIRIES: SOUTH AFRICA, Willie Jacobsz, Tel: +27-11-644-2460, Fax: +27-11-484-0639, ; NORTH AMERICA: Cheryl A Martin, Tel: +1-303-796-8683, Fax: +1-303-796-8293, ; Nerina Bodasing, Tel: +27-11-644-2630, Fax: +27-11-484-0639,

Copyright