GFI Gold Fields Ltd

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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