JOHANNESBURG, May 17, 2012 /PRNewswire/ --
Gold Fields Limited (NYSE & JSE: GFI) today announced net
earnings for the March quarter of R2,082 million compared with
R2,605 million in the December quarter and R1,100 million in the
March 2011 quarter. In US
dollar terms net earnings for the March quarter were US$268 million, compared with US$336 million in the December quarter and
US$158 million in the March 2011 quarter.
March 2012 quarter salient
features:
- Group attributable equivalent gold production of 827,000
ounces;
- Total cash cost of US$870 per
ounce;
- Operating margin of 48 per cent and NCE margin of 24 per cent;
and
- Project pipeline continues to advance.
Statement by Nick Holland, Chief
Executive Officer of Gold Fields:
During the quarter, we regrettably had four fatal accidents at
our South African operations. Safety and health remains the
most important value in our Group and we will continue, in
partnership with the Safety Inspectorate of the Department of
Mineral Resources and with organised labour, to focus our efforts
on improving our safety performance. Five key areas can lead
to sustainable improvements in safety: engineering out risk;
ensuring compliance with standards and procedures; improving the
health of employees; continuous stakeholder engagement; and
behavioural based safety initiatives.
In the March 2012 quarter, Gold
Fields reported attributable Group production of 827,000 gold
equivalent ounces, similar to the corresponding quarter a year ago
(Q1 2011: 830,000 gold equivalent ounces) and 6 per cent lower than
in the December 2011 quarter of
883,000 ounces. Production was seasonally lower in the March
quarter as it includes the extended Christmas break. Despite
the lower production, net earnings remained robust benefiting from
a stable gold price combined with continued sound cost control.
Attributable gold production for the year ending December 2012 is expected to be approximately 3.5
million equivalent ounces.
The Group NCE increased by 2 per cent from R313,286 per kilogram
(US$1,206 per ounce) in the December
quarter to R319,835 per kilogram (US$1,280 per ounce) in the March quarter.
This increase was as a result of higher operating costs and
lower production, partially offset by lower capital expenditure.
The Group reported a NCE margin of 24 per cent for the
March 2012 quarter, which was above
the short term objective of 20 per cent and broadly in line with
the longer term target of 25 per cent.
The March quarter saw steady progress on all of our growth
projects. The most significant development being the
US$110 million payment made on
20 March 2012 to exercise our option
to acquire a 40 per cent interest in the Far Southeast project in
the Philippines. The
decision to exercise the option earlier than originally planned was
linked to positive results from our due diligence and scoping
studies at Far Southeast. A pre-feasibility study, including
a significant 100,000 metre drilling programme, has commenced, and
will concentrate on infill-drilling the exploration target zone to
a level appropriate for resource declaration. We still have
the option to acquire an additional 20 per cent stake from Lepanto
Consolidated Mining Company for US$110
million.
In Peru, the Chucapaca
feasibility study is progressing well, with particular emphasis on
optimising recoveries, plant design as well as permitting
requirements. The study remains on track for completion in
the second half of 2012. The Environmental Impact Assessment (EIA)
is underway, with submission planned following completion of the
feasibility study. Extensive community engagement programmes
and activities are continuing.
At the Arctic Platinum project in Finland, activities during the quarter
included: resource drilling on the Suhanko North prospect, which
has the potential to add meaningful additional tonnes of PGE
mineralisation to the original Suhanko project of 140 million
tonnes; associated metallurgical test work; and the completion and
review of the amendment to the Suhanko Environmental Permit to
incorporate the Platsol hydro-metallurgical process was submitted
at the end of March 2012. An
additional EIA and mining lease application is expected to be
submitted later in 2012 to cover Suhanko North and other nearby
deposits. Our aim is to complete a pre-feasibility study on
the expanded project, including Suhanko North, by the end of 2012.
At the Damang Super-pit project in Ghana, all drilling activities were completed
and resource models finalised for execution of the pre-feasibility
study. All other activities, including engineering and
environmental work are scheduled for completion along with the
pre-feasibility study in the second half of 2012. The impact on the
project of recently gazetted tax changes, increasing the tax rate
from 25 to 35 per cent and the imposing of less favourable capital
allowances on the project, are being assessed.
During the quarter we published our Integrated Annual Report for
2011, which includes our latest Mineral Resource and Reserve
Statement. Gold Fields has total attributable precious metal and
gold equivalent Mineral Reserves of 80.6 million ounces, a 5 per
cent increase in reserves after taking into account the inventory
mined during 2011. The Mineral Resource position in the
West Africa region increased by 46
per cent from 17.3 million ounces to 25.2 million ounces, net of
depletion, largely due to discoveries at the Greater Damang
project. The total Mineral Reserve in the West Africa region has increased by 21 per
cent, from 11.3 million ounces to 13.7 million ounces, net of mine
depletion. In the South American region, Cerro Corona's total gold equivalent Mineral
Reserve base improved by 15 per cent, from 5.3 million ounces to
6.1 million ounces, net of depletion, primarily due to the increase
in the capacity of the tailings storage facility from 99 million
tonnes to 130 million tonnes. The improved Mineral Reserve position
is in line with our long-term target of 5 million gold-equivalent
ounces per year either in production or in development by the end
of 2015.
Notes to editors
About Gold Fields
Gold Fields is one of the world's largest unhedged producers of
gold with attributable annualised production of 3.5 million gold
equivalent ounces from eight operating mines in Australia, Ghana, Peru
and South Africa. Gold Fields also
has an extensive and diverse global growth pipeline with four major
projects in resource development and feasibility, with construction
decisions expected in the next 18 to 24 months. Gold Fields
has total attributable gold equivalent Mineral Reserves of 80.6
million ounces and Mineral Resources of 217 million ounces. Gold
Fields is listed on the JSE Limited (primary listing), the New York
Stock Exchange (NYSE), NASDAQ Dubai Limited, Euronext in
Brussels (NYX) and the Swiss
Exchange (SWX).
Sponsor: J.P. Morgan Equities
Limited
Gold Fields Limited
Reg. 1968/004880/06
150 Helen Road,
Sandown, Sandton,
2196
Postnet Suite 252
Private Bag X30500
Houghton, 2041
South Africa
Tel +27-11-562-9700
Fax +27-11-562-9838
http://www.goldfields.co.za
Enquiries
Investor Enquiries
Willie Jacobsz
Tel +1-508-839-1188
Mobile +1-857-241-7127
Email Willie.Jacobsz@gfexpl.com
Media Enquiries
Sven Lunsche
Tel +27-11-562-9763
Mobile +27-83-260-9279
Email Sven.Lunsche@goldfields.co.za
SOURCE Gold Fields Limited