Gold Fields Expected to Increase Production by 4% to Approximately 871koz During Q3 F2009
March 27 2009 - 11:48AM
PR Newswire (US)
JOHANNESBURG, March 27 /PRNewswire-FirstCall/ -- Gold Fields
Limited (Gold Fields) (JSE, NYSE, NASDAQ Dubai: GFI) today updated
its operational guidance for Q3 F2009. Attributable production for
Q3 F2009 is expected to increase by 4% to approximately 871koz,
with eight of the Group's nine mines increasing production during
the quarter. Total cash cost for the Group is expected to improve
by 3% to approximately US$470/oz and Notional Cash Expenditure
(NCE(1)) by 13% to approximately US$670/oz. South African Region
Attributable Q3 F2009 production from the South African mines is
expected to increase by 3% to approximately 16,100kg (517koz),
compared with 15,571kg (501koz) achieved in Q2 F2009, with the
individual mines expected to perform as follows: - Driefontein is
expected to increase by 11% to approximately 6,700kg (215koz); -
Kloof is expected to increase by 15% to approximately 5,410kg
(174koz); - South Deep is expected to increase by 2% to
approximately 1,500kg (48koz); and - Beatrix is expected to decline
by 25% to approximately 2,490kg (80koz.) Despite the Christmas
recess, the South African operations have improved performance by
3%. Kloof had been impacted by safety stoppages and Beatrix has
been undergoing operational changes to address the mining mix and
improve mining quality. Production at the South African operations
is expected to improve quarter on quarter as Kloof and Beatrix
reach steady state and South Deep builds up its production profile.
International Regions Attributable Q3 F2009 production from the
international mines is expected to increase by 4% to approximately
354koz, compared with 338koz achieved in Q2 F2009, with the
individual mines expected to perform as follows: - Tarkwa is
expected to increase by 9% to approximately 152koz; - Damang is
expected to increase by 4% to approximately 53koz; - St Ives is
expected to increase by 1% to approximately 110koz; - Agnew is
expected to increase by 10% to approximately 50koz; and - Cerro
Corona is expected to increase by 1% to approximately 62koz gold
equivalent ounces. International production was impacted mainly by
a slower than expected build-up at Tarkwa, due to several
commissioning problems experienced during January and February.
These included the failure of a conveyor system which reduced the
quantity of feed from the crusher to the SAG mill, as well as
process flow problems which choked the thickeners at the new CIL
plant, exacerbated by the fact that the pre-existing processing
circuits are fully integrated with the new expansions. These
problems have been resolved and the new plant has been operating on
average at approximately 33,000 tons milled per day from the middle
of March. At times the plant has exceeded the design capacity of
35,000 tons milled per day. Mining has been successfully ramped up
to match production milling rates. Tarkwa is on track to achieve
production of between 170koz and 175koz during Q4 F2009 and between
180koz and 190koz during Q1 F2010. Nick Holland, Chief Executive
Officer of Gold Fields, said: "The important feature of Q3 F2009,
is that our free cash flow margin, (free cash flow = revenue -
NCE), is expected to increase to approximately 25%, up from the 2%
reported in Q2 F2009.This demonstrates our ability to improve free
cash flow on the back of increased production and higher gold
prices." "Gold Fields will in Q3 F2009, for the second consecutive
quarter, show an increase in attributable production, and will be
approximately 9% above the production low-point of 798koz reported
in Q1 F2009. Further increases are expected in the quarters ahead."
"I am particularly pleased that Tarkwa has started to achieve
consistency in its production rate at its upgraded design capacity
of one million tons milled per month, and that Beatrix is on the
road to recovery after a better production month during March. We
remain committed to building up to our original production target
of 1moz per quarter over the remainder of the calendar year, as
Tarkwa achieves full production, Beatrix recovers off its low base,
and South Deep builds up from its current level of approximately
200koz per annum to approximately 320koz during F2010." Detailed
results for Q3 F2009 will be published on 7 May, 2009, at 08:00am
South African time. (1) NCE is operating costs plus all sustaining
and project capital (brownfields exploration is included in NCE).
About Gold Fields Gold Fields Limited is one of the world's largest
unhedged producers of gold with attributable steady state
production of approximately 4 million ounces per annum from nine
operating mines in South Africa, Peru, Ghana and Australia. 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), NASDAQ Dubai Limited (NASDAQ Dubai), 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: +857-241-7127; Nikki
Catrakilis-Wagner, Mobile: +27(0)83-309-6720; Marritt Claassens,
Mobile: +27(0)82-307-3297
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