Gold Fields Updates Operational Guidance for Q1 F2009, on Track to Produce Approximately 1 MOZ in Q3 F2009
October 10 2008 - 2:48AM
PR Newswire (US)
JOHANNESBURG, South Africa, October 10 /PRNewswire-FirstCall/ --
Gold Fields Limited (Gold Fields) (NYSE, JSE, DIFX: GFI) today
updated its operational guidance for Q1 F2009. Group attributable
production for Q1 F2009 is expected to be approximately 798,000
ounces. This is 2.7% lower than the guidance provided on 1 August
2008, which indicated production of 820,000 ounces. This is due
mainly to slower than expected build-up of production at Cerro
Corona. Group cash costs are expected to be in line with previous
guidance, at approximately R154,000/kg (US$618/oz). Notional Cash
Expenditure (NCE), which includes all operating costs as well as
sustaining and project capital, is expected to be approximately 6%
better than previous guidance, at R227,000 /kg (US$910/oz). Nick
Holland, Chief Executive Officer of Gold Fields, said: "In line
with our previous guidance, production in the September quarter was
expected to be impacted by rehabilitation actions at South Deep,
Driefontein and Kloof. With all of the rehabilitation work in South
Africa as well as the international growth projects scheduled for
completion and full build up by the end of December, we remain on
track to achieve our short-term target of a run rate of
approximately 1 million attributable equivalent ounces of gold
during the March quarter next year, at an NCE of approximately
US$725/oz at R/US$8.00." Q1 F2009 gold production for the South
African operations is expected to be approximately 492,000 ounces.
This is 2% better than previous guidance provided on 1 August 2008.
South African cash costs and NCE is expected to be approximately
R154,000/kg (US$618/oz) and R213,000/kg (US$857/oz) respectively,
compared with previous guidance of R157,000/kg (US$610/oz) and
R221,000/kg (US$860/oz) respectively. - Driefontein is expected to
produce approximately 206,700 ounces of gold, which is better than
previous guidance. Cash costs and NCE are expected to be
approximately R130,000/kg (US$522/oz) and R169,000/kg (US$680/oz)
respectively. - Kloof is expected to produce approximately 156,600
ounces of gold, which is approximately 25% better than previous
guidance. Cash costs and NCE are expected to be approximately
R155,000/kg (US$623/oz) and R211,400/kg (US$850/oz) respectively. -
Beatrix is expected to produce approximately 101,400 ounces of
gold, which is approximately 13% below previous guidance. This
decline is as a result of lower volumes mined and a lower mine call
factor which resulted in lower yields. Cash costs and NCE are
expected to be approximately R151,000/kg (US$607/oz) and
R206,600/kg (US$830/oz) respectively. - South Deep is expected to
produce approximately 27,300 ounces of gold, which is approximately
13% below previous guidance. This is due to a slower than expected
return to operational stability after the completion of the
restructuring of the mine, which decreased the workforce from 4,500
to 2,400 following the depletion of the VCR above 95 level. Cash
costs and NCE are expected to be approximately R340,000/kg
(US$1,365/oz) and R580,000/kg (US$2,328/oz) respectively. Q1 F2009
attributable gold production for the international operations is
expected to be approximately 306,000 equivalent ounces. This is
approximately 30,000 equivalent ounces below the guidance given on
1 August 2008, due mainly to the slower than expected build-up of
production at Cerro Corona. Cash costs and NCE for the
international operations are expected to be approximately US$616/oz
and US$983/oz respectively, compared with the previous guidance of
US$570/oz and US$1,060/oz. - Tarkwa is expected to produce
approximately 156,200 ounces of gold, which is approximately 2%
below previous guidance. This decrease is mainly due to a build-up
of Gold in Process (GIP) in the South Heap Leach pads. Cash costs
and NCE are expected to be approximately US$548/oz and US$1,029/oz
respectively. NCE includes the effect of the high capital
expenditure on the mill expansion, which is nearing completion. -
Damang is expected to produce approximately 44,000 ounces of gold,
which is approximately 12% below previous guidance. This decrease
is mainly due the premature failure of the pebble crusher, which
has since been repaired. Cash costs and NCE are expected to be
approximately US$790/oz and US$895/oz respectively. - St Ives is
expected to produce approximately 101,200 ounces of gold, which is
approximately 6% below previous guidance. This decrease is mainly
due to lower grades at Leviathan and Cave Rocks. The ramp up at
Cave Rocks was impacted by complex geology which delayed the
production build-up, but which is now better understood and should
result in improved production in Q2 F2009. Cash costs and NCE are
expected to be approximately US$708/oz and US$986/oz respectively.
- Agnew is expected to produce approximately 52,200 ounces of gold,
which is approximately 5% better than previous guidance. Cash costs
and NCE are expected to be approximately US$494/oz and US$588/oz
respectively. - Cerro Corona, which started production during the
quarter and is still in the commissioning phase, is expected to
produce approximately 12,000 gold equivalent ounces for the
quarter. This is below previous guidance of 42,000 gold equivalent
ounces, and is due to commissioning problems, with the flotation
circuits not simultaneously achieving both copper and gold
recoveries. These commissioning problems are not unusual and are
expected to be resolved by the end of December 2008. The first
shipment of concentrate was made on 30 September 2008. October
month production is expected to be between 15,000 and 20,000 gold
equivalent ounces. Full production is still expected to be achieved
by the end of December 2008. The Driefontein backlog secondary
support as well as the South Deep 95 2 West and 3 West ramp
rehabilitation projects were completed as planned by the end of Q1
F2009. The Kloof Main shaft steelwork replacement is expected to be
completed by the end of Q2 F2009. Despite the slower than expected
build-up, the commissioning of Cerro Corona is progressing well and
the mine is on track to reach full production by the end of
December this year. The Tarkwa CIL Plant expansion is on track for
completion and build-up to full throughput by the end of December
2008. At St Ives, Cave Rocks and Belleisle are expected to reach
full production by the end of Q2 F2009. Detailed results for Q1
F2009 will be published on 29 October 2008, at 08:00am, South
African time. About Gold Fields Gold Fields Limited is one of the
world's largest unhedged producers of gold with attributable
production of 3,64 million ounces per annum from eight operating
mines in South Africa, Ghana and Australia. A ninth mine, Cerro
Corona Gold/Copper mine in Peru, commenced production in August
2008 at an initial rate of approximately 375,000 gold equivalent
ounces per annum. Gold Fields aims to reach a production rate of
approximately 4.0 million ounces per annum during the March quarter
of 2009. The company has total attributable ore reserves of 83
million ounces and mineral resources of 251 million ounces. Gold
Fields is listed on the JSE Limited (primary listing),New York
Stock Exchange (NYSE) and Dubai International Financial Exchange
(DIFX) New Euronext in Brussels (NYX) and Swiss Exchange (SWX). For
more information please visit the Gold Fields website at
http://www.goldfields.co.za/ DATASOURCE: Gold Fields Limited
CONTACT: Enquires: Willie Jacobsz, Tel: +27-508-358-0188, Mobile::
+27-857-241-7127, Email:
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