October 29, 2008
Short Term Earnings Reduced By Safety Related Measures at the South African Operations
JOHANNESBURG, October 29 /PRNewswire-FirstCall/ -- Gold Fields Limited (NYSE & JSE: GFI) today announced normalised earnings excluding gains and losses on foreign exchange, financial instruments, exceptional items, share of loss of associates after taxation and discontinued operations for the September 2008 quarter of R120 million, compared with earnings of R943 million and R409 million for the June 2008 and September 2007 quarters respectively. In US dollar terms normalised earnings excluding gains and losses on foreign exchange, financial instruments, exceptional items, share of loss of associates after taxation and discontinued operations for the September 2008 quarter were US$16 million, compared with earnings of US$123 million and US$58 million in the June 2008 and the September 2007 quarters respectively.
September 2008 quarter salient features: - Improved safety performance; - Attributable gold production decreased as expected by 8 per cent to 798,000 ounces; half the shortfall is attributable to short term safety related rehabilitation in South Africa; - Cash cost at R153,461 per kilogram (US$617 per ounce) was similar to guidance while NCE at R226,120 per kilogram (US$909 per ounce) was 8 per cent better than guidance; - Rehabilitation of 95 2 West and 95 3 West access ramps at South Deep completed by the end of September; - First shipment of concentrate at Cerro Corona took place on 30 September; - Main shaft infrastructure rehabilitation at Kloof well on track for completion by end December 2008; - St Ives' Belleisle achieved full production. Statement by Nick Holland, Chief Executive Officer of Gold Fields:
During the September quarter Gold Fields delivered its best safety performance ever, indicating that the intense focus on safety is delivering results. However, despite the significant improvements across all measures, we are not yet satisfied. Gold Fields remains committed to improving all its safety metrics and safe production remains the number one priority.
In line with the guidance that we provided for Q1 F2009, our earnings were reduced significantly by the safety related rehabilitation work at the Driefontein, Kloof and South Deep mines in South Africa, as well as by higher costs, driven largely by the annual wage increases in South Africa and the higher power tariffs in both South Africa and Ghana, along with continued inflation across the globe.
However, with the rehabilitation work in South Africa as well as the international growth projects scheduled for completion by the end of December, we remain on track to achieve our short term target of a run rate of approximately 1 million attributable equivalent ounces of gold during the March quarter next year, at an NCE of approximately US$725/oz at R/US$8.00.
A major milestone was achieved post quarter end with Cerro Corona making its first shipment of concentrate."
Full results is available on the company 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/.
Gold Fields Limited
CONTACT: Enquiries: Willie Jacobsz, Direct: +27(0)11-644-2505, Mobile:+1-857-241-7127