Gold Fields Improves Operational Performance Due to Stabilization of Power Supplies in South Africa
August 01 2008 - 2:17AM
PR Newswire (US)
JOHANNESBURG, August 1 /PRNewswire-FirstCall/ -- Gold Fields
Limited (NYSE & JSE: GFI) today announced net earnings for the
June 2008 quarter of R843 million, compared with earnings of R1,248
million and R528 million for the March 2008 and the June 2007
quarters respectively. In US dollar terms net earnings for the June
2008 quarter were US$105 million, compared with earnings of US$167
million and US$74 million for the March 2008 and the June 2007
quarters respectively. June 2008 quarter salient features: -
Attributable gold production increased by 5 per cent to 865,000
ounces; - Total cash costs steady at R125,359 per kilogram (US$502
per ounce); - Notional Cash Expenditure (operating cost plus
capital expenditure) at R217,065 per kilogram (US$869 per ounce)
due to high inward investment in growth projects; - Operating
profit increased 6 per cent to R2.72 billion and normalised
earnings of R911 million generated; - Commissioning underway at
Cerro Corona and Tarkwa's CIL expansion due for completion in the
December quarter. Financial year salient features: - Attributable
gold production of 3.64 million ounces compared with 3.97 million
ounces in the previous year; - Total cash costs increased from
R86,623 per kilogram (US$374 per ounce) to R111,315 per kilogram
(US$476 per ounce) due to the lower production and cost pressures
driven by the resource boom; - Essakane and Venezuelan assets sold
in the December quarter 2007, releasing R4.2 billion (US$615
million) in value; - US$438 million invested in growth projects in
Peru and Ghana; - US$121 million invested in increasing our
ownership in Sino Gold and Conquest Mining to 19.9 per cent and
19.1 per cent respectively. Final dividend number 69 of 120 SA
cents per share is payable on 25 August 2008, giving a total
dividend for financial 2008 of 185 SA cents per share. Statement by
Nick Holland, Chief Executive Officer of Gold Fields: "After a
particularly difficult start to the quarter, with the accident at
the South Deep Gold Mine in which nine of our colleagues tragically
lost their lives, the people of Gold Fields rallied together to
show their mettle. Galvanized by my statement that 'we will not
mine if we cannot mine safely', they took control of the safety
situation on all of our mines, where a new safety culture is
rapidly taking root. "Against this backdrop, Gold Fields staged a
welcome recovery with production increasing by 5 per cent from Q3
which was negatively impacted by power interruptions, while
maintaining a tight control on costs, despite the continued
inflationary pressures world-wide. Notional Cash Expenditure
(operating cost and capital expenditure) for the quarter increased
from US$843 per ounce in Q3 to US$869 per ounce, largely on the
back of increased capital expenditure at the international
operations. The Group's NCE is expected to decline significantly
early in calendar 2009 as capital expenditure on the Cerro Corona
project is completed and the mine becomes operational along with
the Tarkwa expansion. "A comprehensive review of infrastructure
across our operations, following from the heightened safety
awareness across the Group since my appointment, has resulted in
urgent rehabilitation being necessary at the Main shaft
infrastructure at Kloof and in particular replacement of a
significant portion of the steelwork below 17 level. As a
consequence, the operation of this shaft is to be suspended for
approximately six months while the necessary maintenance is carried
out. Kloof's production over this period is expected to reduce by
between 25 and 35 per cent. Operations will continue at this shaft
on a 1 day a week basis to maintain integrity of faces and ore
passes. Driefontein's production will also decline in the September
quarter by approximately 400 kilograms due to a need to catch up
safety critical secondary support and South Deep is already in the
process of reinstalling primary support at its 95 2 West and 95 3
West ramps. Production at Driefontein and South Deep should return
to approximately 6,800 kilograms per quarter and 1,500 kilograms
per quarter respectively by the December quarter and Kloof's
production should be restored to 2,000 kilograms per month by
February 2009. "Notwithstanding the short-term safety-related
actions to be initiated in South Africa as referred to in the
preceding paragraph, long awaited growth projects will be commenced
and brought to full production over the next two quarters. In
particular, the completion of the new Cave Rocks and Belleisle
underground mines at St Ives; the addition of Cerro Corona and the
completion of the Tarkwa CIL plant expansion during Q2, position
Gold Fields well to achieve its short term target of a production
rate of approximately 4 million ounces of gold per annum at an NCE
of US$700 per ounce to US$725 per ounce at R/US$8.00, early in
calendar 2009." The full results are available on the Gold Fields
website: http://www.goldfields.co.za/ About Gold Fields Gold Fields
Limited is one of the world's largest unhedged producers of gold
with attributable production of more than four million ounces per
annum from eight operating mines in South Africa, Ghana and
Australia. A ninth mine, the Cerro Corona Gold/Copper mine in Peru,
is expected to commence production by mid 2008 at an initial rate
of approximately 400,000 gold equivalent ounces per annum. The
company has total attributable ore reserves of 92 million ounces
and mineral resources of 252 million ounces. Gold Fields employs
some 53,000 permanent employees across its operations and is listed
on the JSE Limited South Africa (primary listing), the New York
Stock Exchange (NYSE) and the Dubai International Financial
Exchange (DIFX). All of Gold Fields' operations are ISO14001
certified. For more information please visit the Gold Fields
website at http://www.goldfields.co.za/. DATASOURCE: Gold Fields
Limited CONTACT: Enquiries: Willie Jacobsz, Tel: +508-358-0188,
Mobile: +857-241-7127, Gold Fields Limited, 24 St Andrews Road,
Parktown, 2193, Postnet Suite 252, Privte Bag X30500, Houghton,
2041, South Africa, +27-11-644-2400, Fax +27-11-484-0639
Copyright