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Gold Fields beats production quarterly targets at all operations - BDlive

Tuesday, 19 April 2016

GOLD Fields produced 515,000oz of gold in the March quarter, a 3% increase from a year earlier but a 9% drop from the 566,000oz produced in the December quarter.

March tends to be a "seasonally weak quarter" due to mines restarting after Christmas holidays, Gold Fields said in Tuesday’s quarterly operating update.

"Encouragingly, all eight operations exceeded their planned production for the quarter," CEO Nick Holland said in the statement.

Regarding amendments to the Mining Charter published last Friday, Mr Holland said: "Although the mining industry was not consulted prior to its publication, Gold Fields will engage with the Department of Mineral Resources, through the Chamber of Mines and appropriate structures, during the consultation period which ends on May 31."

South Deep’s 64,000oz production was 75% higher than the matching quarter last year, and "only 7%" lower than the December quarter.

Managed production in Ghana was 181,000oz, up 4% year on year but down 3% quarter on quarter.

Mr Holland said a key highlight of the quarter was the conclusion of a development agreement with Ghana’s government for both Tarkwa and Damang.

"We commend the government of Ghana for creating a fair and competitive environment in the country," he said.

The agreement includes a lower corporate tax rate for Gold Fields, of 32.5% — down from 35%.

It also includes a change in the royalty rate from a flat 5% of revenue to a sliding-scale royalty based on the gold price. A gold price of up to $1,300/oz will attract a 3% royalty.

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