Annual Reserve Declaration of 80.6 Million Ounces Reflects Greater Technical and Global Diversification
May 13 2012 - 9:49AM
PR Newswire (Canada)
JOHANNESBURG, May 17, 2012 /CNW/ - Gold Fields Limited 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 CONTACT: Gold Fields LimitedReg.
1968/004880/06150 Helen Road,Sandown, Sandton,2196Postnet Suite
252Private Bag X30500Houghton, 2041South AfricaTel
+27-11-562-9700Fax
+27-11-562-9838http://www.goldfields.co.zaEnquiriesInvestor
EnquiriesWillie JacobszTel +1-508-839-1188Mobile
+1-857-241-7127Email Willie.Jacobsz@gfexpl.comMedia EnquiriesSven
LunscheTel +27-11-562-9763Mobile +27-83-260-9279Email
Sven.Lunsche@goldfields.co.za
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