| Fri 27 Mar 2009, 17:00 | | GFI - Gold Fields Expected To Increase Production By 4% To Approximately |
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GFI
GOGOF
GFI - Gold Fields Expected To Increase Production By 4% To Approximately
871koz During Q3 F2009
Gold Fields Limited
(Registration Number 1968/004880/06)
("Gold Fields " or "the Company")
JSE, NYSE, NASDAQ Dubai Share Code: GFI
NYX Code: GFLB, and SWX Code: GOLI
ISIN: ZAE000018123
MEDIA RELEASE
GOLD FIELDS EXPECTED TO INCREASE PRODUCTION BY 4% TO APPROXIMATELY 871KOZ DURING
Q3 F2009
Johannesburg, 27 March 2009: Gold Fields Limited (Gold Fields) (JSE, NYSE,
NASDAQ Dubai: GFI) today updated its operational guidance for Q3 F2009.
Attributable production for Q3 F2009 is expected to increase by 4% to
approximately 871koz, with eight of the Group`s nine mines increasing production
during the quarter. Total cash cost for the Group is expected to improve by 3%
to approximately US$470/oz and Notional Cash Expenditure (NCE1) by 13% to
approximately US$670/oz.
South African Region
Attributable Q3 F2009 production from the South African mines is expected to
increase by 3% to approximately 16,100kg (517koz), compared with 15,571kg
(501koz) achieved in Q2 F2009, with the individual mines expected to perform as
follows:
- Driefontein is expected to increase by 11% to approximately 6,700kg
(215koz);
- Kloof is expected to increase by 15% to approximately 5,410kg (174koz);
- South Deep is expected to increase by 2% to approximately 1,500kg (48koz);
and
- Beatrix is expected to decline by 25% to approximately 2,490kg (80koz.)
Despite the Christmas recess, the South African operations have improved
performance by 3%. Kloof had been impacted by safety stoppages and Beatrix has
been undergoing operational changes to address the mining mix and improve mining
quality. Production at the South African operations is expected to improve
quarter on quarter as Kloof and Beatrix reach steady state and South Deep builds
up its production profile.
International Regions
Attributable Q3 F2009 production from the international mines is expected to
increase by 4% to approximately 354koz, compared with 338koz achieved in Q2
F2009, with the individual mines expected to perform as follows:
- Tarkwa is expected to increase by 9% to approximately 152koz;
- Damang is expected to increase by 4% to approximately 53koz;
- St Ives is expected to increase by 1% to approximately 110koz;
- Agnew is expected to increase by 10% to approximately 50koz; and
- Cerro Corona is expected to increase by 1% to approximately 62koz gold
equivalent ounces.
International production was impacted mainly by a slower than expected build-up
at Tarkwa, due to several commissioning problems experienced during January and
February. These included the failure of a conveyor system which reduced the
quantity of feed from the crusher to the SAG mill, as well as process flow
problems which choked the thickeners at the new CIL plant, exacerbated by the
fact that the pre-existing processing circuits are fully integrated with the new
expansions. These problems have been resolved and the new plant has been
operating on average at approximately 33,000 tons milled per day from the middle
of March. At times the plant has exceeded the design capacity of 35,000 tons
milled per day. Mining has been successfully ramped up to match production
milling rates. Tarkwa is on track to achieve production of between 170koz and
175koz during Q4 F2009 and between 180koz and 190koz during Q1 F2010.
Nick Holland, Chief Executive Officer of Gold Fields, said:
"The important feature of Q3 F2009, is that our free cash flow margin, (free
cash flow = revenue - NCE), is expected to increase to approximately 25%, up
from the 2% reported in Q2 F2009.This demonstrates our ability to improve free
cash flow on the back of increased production and higher gold prices."
"Gold Fields will in Q3 F2009, for the second consecutive quarter, show an
increase in attributable production, and will be approximately 9% above the
production low-point of 798koz reported in Q1 F2009. Further increases are
expected in the quarters ahead."
"I am particularly pleased that Tarkwa has started to achieve consistency in its
production rate at its upgraded design capacity of one million tons milled per
month, and that Beatrix is on the road to recovery after a better production
month during March. We remain committed to building up to our original
production target of 1moz per quarter over the remainder of the calendar year,
as Tarkwa achieves full production, Beatrix recovers off its low base, and South
Deep builds up from its current level of approximately 200koz per annum to
approximately 320koz during F2010."
Detailed results for Q3 F2009 will be published on 7 May, 2009, at 08:00am South
African time.
(1) NCE is operating costs plus all sustaining and project capital (Brownfields
exploration is included in NCE).
Issued by Gold Fields Limited
Reg. 1968/004880/06
150 Helen Road
Sandown, Sandton
2196
Postnet Suite 252
Private Bag X30500
Houghton, 2041
South Africa
Tel: +27 11 562 9700
Fax: +27 11 562 9801
www.goldfields.co.za
Enquiries:
Media and Investor Enquiries:
Willie Jacobsz
Tel: +508 358 0188
Mobile: +857 241 7127
Email: willie.jacobsz@gfexpl.com
Investor Enquiries:
Nikki Catrakilis-Wagner
Tel: +27 11 562 9706
Mobile: +27 (0) 83 309 6720
Email: nikki.catrakilis-wagner@goldfields.co.za
Media Enquiries:
Marritt Claassens
Tel: +27 11 562 9774
Mobile: +27 (0) 82 307-3297
Email: marrittc@goldfields.co.za
Sponsor:
J.P. Morgan Equities Limited
About Gold Fields
Gold Fields Limited is one of the world`s largest unhedged producers of gold
with attributable steady state production of approximately 4 million ounces per
annum from nine operating mines in South Africa, Peru, Ghana and Australia. 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), NASDAQ Dubai Limited (NASDAQ
Dubai), New Euronext in Brussels (NYX) and Swiss Exchange (SWX). For more
information please visit the Gold Fields website at www.goldfields.co.za.
Date: 27/03/2009 17:00:04 Produced by the JSE SENS Department.
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