Gold Fields
Nick Holland
Johannesburg, South Africa — MININGREVIEW.COM — 04 February 2010 – Gold Fields Limited “’ the world’s No.4 gold producer “’ has announced net earnings for the December 2009 quarter of R1 409 million, compared with earnings of R1 007 million and R483 million in the September 2009 and the December 2008 quarters respectively.

In a results statement released here the company said that in US dollar terms net earnings for the December 2009 quarter wereUS$187 million, compared with US$129 million and US$54 million for the September 2009 and December 2008 quarters respectively.

The statement added that net earnings excluding gains and losses on foreign exchange, financial instruments, exceptional items and share of profit or loss of associates after taxation for the December 2009 quarter was R1 022 million, compared with earnings of R625 million and R542 million in the September 2009 and the December 2008 quarters respectively.

It revealed that adjusted EPS for the quarter to end-December rose to 145 cents from 89 cents the previous quarter, but said it expected output for the next three months to drop due to a slower ramp-up after Christmas. Other salient features included:

  • Attributable gold production at 900 000 ounces, down from 906 000 ounces the previous three months;
  • Total cash cost similar to the previous quarter at R147 648 per kilogram, but up 5% in dollar terms due to the stronger rand; and
  • Notional cash expenditure up 4% to R216 830 per kilogram;

“In the March 2010 quarter attributable gold production is estimated at 850 000 oz, with a decrease in production in the South Africa region due to the slow start-up after the Christmas break,” Gold Fields said in the statement.

CEO Nick Holland commented: “Gold Fields has again benefited from the higher gold price, delivering a 40% increase in earnings for the quarter ended 31 December 2009. This significant increase was achieved against a background of mainly safety-related challenges.”

He added that discussions had commenced with unions, associations and the DMR regarding the introduction of a six-day work week to ameliorate the effects of the Christmas and Easter breaks, and lost shifts due to safety and other stoppages. The objective was to improve efficiencies while maintaining current conditions of employment, especially working hours, in order to create a more sustainable environment and to avoid possible retrenchments.