UPDATE:Gold Fields Posts Steady Second Quarter Output, Net Loss

Gold Fields Ltd. (GFI), Africa's second-largest producer of the precious metal, said Friday production in the second quarter was down slightly from the quarter before but that it remains on track to meet its 2015 growth target.

The Johannesburg-based company produced 898,000 troy ounces in the quarter to Dec. 31, in line with previous guidance and output, but down slightly from the 908,000 ounces produced in the first quarter.

The miner forecasts 2011 total production of between 3.5 million attributable equivalent ounces and 3.7 million attributable equivalent ounces. Gold Fields produced 3.5 million ounces in 2010.

Gold Fields is aiming to produce 5 million ounces a year by 2015 as it develops mines and exploration outside South Africa.

Other gold miners this week posted plans to raise output in 2011. AngloGold Ashanti Ltd. (AU), Africa's largest gold producer, said it plans to increase output by up to 5% to between 4.55 million ounces and 4.75 million ounces.

Anglo-Tanzanian miner African Barrick Gold PLC (ABG.LN) said it seeks to ramp output up while its parent company Canadian miner Barrick Gold Corp (ABX) is targeting output to be unchanged on the year.

Gold Fields chief Executive Nick Holland said the miner plans to make construction decisions in the next 12-24 months on its four main growth projects--its joint venture in the Philippines, Chucapaca project in Peru, 85%-owned Yanfolila project in Mali and its 12-million-ounce Arctic Platinum poly-metallic deposit in Finland.

Total cash costs for 2011 are currently forecast at $760 per ounce (R175,000 per kilogram), Gold Fields said. Total cash cost in the second quarter rose to $728/oz (R161,894 per kilogram) from $697/oz (R164,898 per kilogram) in the quarter before.

Gold Fields reported second-quarter net earnings excluding gains and losses on foreign exchange and non-recurring items of 1,475 million rand ($211 million) compared with 1,016 million rand ($138 million) in the previous quarter and 1,022 million rand ($135 million) the year before.

A net loss of 777 million rand ($106 million) was incurred due to the cost of a number of empowerment transactions completed in the quarter.

Gold Fields is changing to a December from a June financial year-end. Gold Fields operates nine mines in South Africa, Ghana, Australia and Peru.

-By Devon Maylie, Dow Jones Newswires; +44 (20) 7842 9483; devon.maylie@dowjones.com

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