| Fri 10 Oct 2008, 8:11 | | GFI - Gold Fields Updates Operational Guidance For Q1 F2009, On Track To |
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GFI
GOGOF
GFI - Gold Fields Updates Operational Guidance For Q1 F2009, On Track To
Produce Approximately 1 Moz In Q3 F2009
Gold Fields Limited
(Registration Number 1968/004880/06)
("Gold Fields " or "the Company")
JSE, NYSE, DIFX Share Code: GFI
NYX Code: GFLB, and SWX Code: GOLI
ISIN: ZAE000018123
Media release
GOLD FIELDS UPDATES OPERATIONAL GUIDANCE FOR Q1 F2009, ON TRACK TO PRODUCE
APPROXIMATELY 1 MOZ IN Q3 F2009
Johannesburg, 10 October 2008: Gold Fields Limited (Gold Fields) (NYSE, JSE,
DIFX: GFI) today updated its operational guidance for Q1 F2009.
Group attributable production for Q1 F2009 is expected to be approximately
798,000 ounces. This is 2.7% lower than the guidance provided on 1 August
2008, which indicated production of 820,000 ounces. This is due mainly to
slower than expected build-up of production at Cerro Corona.
Group cash costs are expected to be in line with previous guidance, at
approximately R154,000/kg (US$618/oz). Notional Cash Expenditure (NCE),
which includes all operating costs as well as sustaining and project
capital, is expected to be approximately 6% better than previous guidance,
at R227,000 /kg (US$910/oz).
Nick Holland, Chief Executive Officer of Gold Fields, said: "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."
Q1 F2009 gold production for the South African operations is expected to be
approximately 492,000 ounces. This is 2% better than previous guidance
provided on 1 August 2008. South African cash costs and NCE is expected to
be approximately R154,000/kg (US$618/oz) and R213,000/kg (US$857/oz)
respectively, compared with previous guidance of R157,000/kg (US$610/oz) and
R221,000/kg (US$860/oz) respectively.
- Driefontein is expected to produce approximately 206,700 ounces of
gold, which is better than previous guidance. Cash costs and NCE are
expected to be approximately R130,000/kg (US$522/oz) and R169,000/kg
(US$680/oz) respectively.
- Kloof is expected to produce approximately 156,600 ounces of gold,
which is approximately 25% better than previous guidance. Cash costs and NCE
are expected to be approximately R155,000/kg (US$623/oz) and R211,400/kg
(US$850/oz) respectively.
- Beatrix is expected to produce approximately 101,400 ounces of gold,
which is approximately 13% below previous guidance. This decline is as a
result of lower volumes mined and a lower mine call factor which resulted in
lower yields. Cash costs and NCE are expected to be approximately
R151,000/kg (US$607/oz) and R206,600/kg (US$830/oz) respectively.
- South Deep is expected to produce approximately 27,300 ounces of gold,
which is approximately 13% below previous guidance. This is due to a slower
than expected return to operational stability after the completion of the
restructuring of the mine, which decreased the workforce from 4,500 to 2,400
following the depletion of the VCR above 95 level. Cash costs and NCE are
expected to be approximately R340,000/kg (US$1,365/oz) and R580,000/kg
(US$2,328/oz) respectively.
Q1 F2009 attributable gold production for the international operations is
expected to be approximately 306,000 equivalent ounces. This is
approximately 30,000 equivalent ounces below the guidance given on 1 August
2008, due mainly to the slower than expected build-up of production at Cerro
Corona. Cash costs and NCE for the international operations are expected to
be approximately US$616/oz and US$983/oz respectively, compared with the
previous guidance of US$570/oz and US$1,060/oz.
- Tarkwa is expected to produce approximately 156,200 ounces of gold,
which is approximately 2% below previous guidance. This decrease is mainly
due to a build-up of Gold in Process (GIP) in the South Heap Leach pads.
Cash costs and NCE are expected to be approximately US$548/oz and
US$1,029/oz respectively. NCE includes the effect of the high capital
expenditure on the mill expansion, which is nearing completion.
- Damang is expected to produce approximately 44,000 ounces of gold,
which is approximately 12% below previous guidance. This decrease is mainly
due the premature failure of the pebble crusher, which has since been
repaired. Cash costs and NCE are expected to be approximately US$790/oz and
US$895/oz respectively.
- St Ives is expected to produce approximately 101,200 ounces of gold,
which is approximately 6% below previous guidance. This decrease is mainly
due to lower grades at Leviathan and Cave Rocks. The ramp up at Cave Rocks
was impacted by complex geology which delayed the production build-up, but
which is now better understood and should result in improved production in
Q2 F2009. Cash costs and NCE are expected to be approximately US$708/oz and
US$986/oz respectively.
- Agnew is expected to produce approximately 52,200 ounces of gold, which
is approximately 5% better than previous guidance. Cash costs and NCE are
expected to be approximately US$494/oz and US$588/oz respectively.
- Cerro Corona, which started production during the quarter and is still
in the commissioning phase, is expected to produce approximately 12,000 gold
equivalent ounces for the quarter. This is below previous guidance of 42,000
gold equivalent ounces, and is due to commissioning problems, with the
flotation circuits not simultaneously achieving both copper and gold
recoveries. These commissioning problems are not unusual and are expected
to be resolved by the end of December 2008. The first shipment of
concentrate was made on 30 September 2008. October month production is
expected to be between 15,000 and 20,000 gold equivalent ounces. Full
production is still expected to be achieved by the end of December 2008.
The Driefontein backlog secondary support as well as the South Deep 95 2
West and 3 West ramp rehabilitation projects were completed as planned by
the end of Q1 F2009. The Kloof Main shaft steelwork replacement is expected
to be completed by the end of Q2 F2009.
Despite the slower than expected build-up, the commissioning of Cerro Corona
is progressing well and the mine is on track to reach full production by the
end of December this year. The Tarkwa CIL Plant expansion is on track for
completion and build-up to full throughput by the end of December 2008. At
St Ives, Cave Rocks and Belleisle are expected to reach full production by
the end of Q2 F2009.
Detailed results for Q1 F2009 will be published on 29 October 2008, at
08:00am, South African time.
-ends-
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
www.goldfields.co.za.
Gold Fields Limited
Reg. 1968/004880/06
24 St Andrews Road
Parktown, 2193
Postnet Suite 252
Private Bag X30500
Houghton, 2041
South Africa
Tel +27 11 644-2400
Fax +27 11 484-0639
www.goldfields.co.za
Enquires
Willie Jacobsz
Tel: +(508) 358-0188
Mobile:: +(857) 241 7127
Email: willie.jacobsz@gfexpl.com
Date: 10/10/2008 08:11:26 Produced by the JSE SENS Department.
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