HomeGoldGold Fields cuts production forecast for Q1 of F2009

Gold Fields cuts production forecast for Q1 of F2009

Nick Holland,
Gold Fields
Johannesburg, South Africa — MININGREVIEW.COM — 10 October 2008 – Leading international gold producer Gold Fields Limited has cut its production forecast for the first quarter of its 2009 financial year by 2.7%, due mainly to a slower-than-expected build-up of output at its mine in Peru.

Announcing this in a media release here today, the company put the new output figure at 798 000 ounces, compared to the August guidance of 820 000m ounces, and said it was due mainly to slower than expected build-up of production at Cerro Corona, in South America.

Gold Fields – which is Africa’s-biggest gold miner and the world’s fourth-largest gold producer – also said it was on track to achieve its short-term production target.

CEO Nick Holland commented: “In line with our previous guidance, production in the September quarter was expected to be impacted by rehabilitation actions at South Deep, Driefontein and Kloof. With all of the rehabilitation work in South Africa – as well as the international growth projects scheduled for completion and full build up 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.”

The media release revealed that gold production for Gold Fields South African operations in Q1 of F2009 was expected to be approximately 492 000 ounces, which was 2% better than previous guidance provided on 1 August 2008. Attributable gold production for the company’s international operations in Q1 of F2009 was expected to be approximately 306 000 equivalent ounces. This was about 30 000 equivalent ounces below the guidance given in August.

The Gold Fields media release concluded by saying it had not been affected by the global credit crisis, and that it was “always on the prowl for acquisitions, even in hard times.”