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Gold Fields earnings and production drop

Nick Holland,
CEO, Gold
Fields Limited
Johannesburg, South Africa — MININGREVIEW.COM — 30 October 2008 – Leading international gold producer Gold Fields Limited has announced normalised earnings of R120 million for the September 2008 quarter – a sharp drop from R943 million in the previous quarter, and R409 million in the three months to September 2007.

Announcing these results, Gold Fields added that gold production had decreased by 8% from 865 000 ounces in the second quarter to 798 000 ounces in the third quarter, mainly attributable to short-term, safety-related rehabilitation in South Africa.

CEO Nick Holland commented: “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,” he added.

“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,” Holland explained.

“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.