Full Production Achieved on Expansion Projects at end December 2008
January 29 2009 - 2:08AM
PR Newswire (US)
JOHANNESBURG, South Africa, January 29 /PRNewswire-FirstCall/ --
Gold Fields Limited (JSE and NYSE: GFI) today announced headline
earnings for the December 2008 quarter of R484 million, compared
with earnings of R39 million and R456 million for the September
2008 and December 2007 quarters respectively. In US dollar terms
headline earnings for the December 2008 quarter were US$55 million,
compared with earnings of US$5 million and US$67 million in the
September 2008 and December 2007 quarters respectively. December
2008 quarter salient features: - Attributable gold production of
839,000 ounces; 5 per cent higher than the previous quarter and in
line with guidance; - Cash costs were flat at R153,893 per kilogram
but decreased by 21 per cent in dollar terms from US$617 per ounce
in the September quarter to US$487 per ounce in the December
quarter due to the weaker rand and Australian dollar; - NCE
increased by 8 per cent to R244,210 per kilogram this quarter but
decreased from US$909 per ounce to US$774 per ounce due to the
weaker rand and Australian dollar; - Project capital expenditure at
Cerro Corona and Tarkwa fully completed in line with guidance; -
Cerro Corona achieved full production late in the December quarter;
- Kloof Main shaft infrastructure rehabilitation completed as
planned; - The CIL plant expansion at Tarkwa achieved rock into
mill on 12 December 2008 and name plate capacity on 23 December
2008. Interim dividend number 70 of 30 SA cents per share is
payable on 23 February 2009. Statement by Nick Holland, Chief
Executive Officer of Gold Fields: "As per the guidance provided to
the market, the first half of F2009 was extremely challenging for
Gold Fields. During this period we had to make a number of
challenging decisions regarding the rehabilitation of our South
African mines, and complete our international growth projects. We
have also taken safety to a new level. While we consider this as
work-in-progress, we have already seen significant improvements on
all safety metrics. Particularly significant is the decline in the
fatal injuries which, to December, stands at eight compared with
the total of 47 for F2008. Our objective is to achieve a
significant decline in serious injuries and to eliminate all fatal
injuries on our mines. Despite the impact of the Christmas break on
the South Africa operations, and the decline in the copper price
which negatively impacted the conversion of copper into gold
equivalent ounces at Cerro Corona, attributable production for Q3
F2009 is expected to be approximately 960,000 ounces. As a result
of the lower copper price and its impact on the conversion of Cerro
Corona's copper into gold equivalent ounces, total gold production
for the Group is expected to stabilise at a run rate of
approximately 975,000 equivalent ounces during the month of March.
The expected shortfall of 25,000 ounces against our targeted run
rate of one million ounces is entirely attributable to the
conversion of Cerro Corona's copper into gold equivalent ounces at
the lower copper price. However, the mine is expected to achieve
its design capacity in actual gold and copper production. With our
major growth projects in Ghana and Peru completed, capital
expenditure is expected to decline significantly. Combined with the
expected increase in production and our ongoing efforts to reduce
our cash costs and notional cash expenditure, this will enable us
to benefit more from the higher gold price and move the company to
a cash positive position. Electricity supply in South Africa, which
constrained our operating performance in F2008, has stabilised.
More importantly, Gold Fields has ameliorated the impact of power
rationing by implementing several energy saving projects. In light
of the current credit crisis, Gold Fields' balance sheet remains
robust with manageable debt levels and adequate liquidity. For the
remainder of F2009 and through F2010 our main priority is to
further improve our safety performance and to increase production
by optimising our existing mines." 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 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: Enquiries: Willie Jacobsz
, Mobile: +27(001)-857-241-7127; Nikki Catrakilis-Wagner, Mobile:
+27(0)83-309-6720
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