Despite the lower production and considering that the operations generally have fewer production shifts in the March quarter, the quality and leverage operations reported a solid performance with strong cost control and improved grades. Fewer total tonnes were milled for the quarter under review. The 6.2% drop in tonnes (from the SA underground operations) to 3 152 000 tonnes compares with 3 361 000 tonnes previously. This was partially countered by the 4.2% higher grades of 5.0g/t from the SA underground operations, which resulted in gold production being only 2.5% lower at 15 655kg (16 066kg). A higher Rand gold price received of R151 833/kg and a steady USD/ZAR exchange rate of R7.24 translated into a pleasing cash operating profit of R868.5 million, an increase of 15.1% quarter on quarter.
Total operating profit rose 15.1% to R869 million (R755 million) quarter on quarter and is up by 184.0% from R306 million compared with the corresponding period ended March 2006. The March 2007 net profit was up 6.5% to R247 million compared with the December 2006 quarter considering that the December 2006 had an accounting profit of R236 million which arose from the conversion of Western Areas shares to Gold Fields shares. A loss of R174 million was reported for March 2006. Total cash operating costs were marginally down at R103 608/kg from R104 132/kg previously. Headline earnings improved by 31.8% to 58cps compared with 44cps for the December 2006 quarter and a 48cps loss for the March 2006 quarter.
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