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
equivalent 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 annualised 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.” |
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