Gold Fields: Operating Profit Maintained at R2 Billion (US$270 Million) Generating Bottom Line Earnings of R767 Million (US$104
January 25 2007 - 5:12AM
PR Newswire (US)
JOHANNESBURG, South Africa, January 25 /PRNewswire-FirstCall/ --
Gold Fields Limited (NYSE & JSE: GFI) today announced net
earnings for the December 2006 quarter of R767 million compared
with R698 million in the September 2006 quarter and R284 million
for the December quarter of 2005. In US dollar terms net earnings
for the December 2006 quarter were US$104 million compared with
US$98 million in the September 2006 quarter and US$44 million for
the December quarter of 2005. Net earnings excluding gains and
losses on financial instruments and foreign debt net of cash and
exceptional items were R564 million (US$76 million) for the
December 2006 quarter compared with R702 million (US$99 million)
for the September 2006 quarter. December 2006 quarter highlights: -
Attributable gold production increased by 10,000 ounces to
1,015,000 ounces; - Acquisition of Barrick Gold Corporation's 50
per cent interest in South Deep completed - effective date 1
December 2006. Financed by bridging finance of R8.6 billion (US$1.2
billion) and the issue of 18,701,944 Gold Fields shares worth R2.3
billion (US$325 million); - As at 18 January 2007, Gold Fields had
received acceptances in respect of approximately 95.6 per cent of
the issued share capital of Western Areas. This was financed by the
issue of 43,920,023 Gold Fields shares to shareholders of Western
Areas. Step is being taken to increase this to 100 per cent with
the "squeeze out provisions" of the Companies Act; - South African
Government formally approved the conversion of Driefontein, Kloof
and Beatrix old order mining licenses into new order mining
licenses; - Tarkwa announced US$175 million (R1.25 billion) mill
and heap leach expansion projects; - Interim dividend declared of
90 SA cents per share payable on 19 February 2007. Ian Cockerill,
Chief Executive Officer of Gold Fields, said: "Overall the Group's
performance for the December quarter was steady with production
being largely as expected with the exception of Kloof which had a
disappointing quarter. Given the cost escalations being experienced
in the mining industry, our efforts in controlling costs in this
challenging environment are satisfying. The two significant
achievements during the quarter under review have been the
conversion of the mining rights for all three of our South African
operations and our acquisition of the South Deep Gold Mine. While
both of these achievements are cornerstones for the future of our
company in South Africa, much work remains to be done. While our
new order mining rights have now been approved, transformation is
an ongoing imperative and Gold Fields is committed to achieving the
targets which it has set itself in this regard. The integration of
South Deep into Gold Fields is of the highest priority. We are
analyzing the existing South Deep mine plan and feasibility study,
and will be ramping up the production profile of this mine, to
achieve its very significant potential." 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, .
Nerina Bodasing, Tel. +27-11-644-2630, Fax, +27-11-484-0639, .
North America: Cheryl A Martin, Tel. +1-303-796-8683, Fax,
+1-303-796-8293,
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