Gold Fields Continues Strong Quarterly Performance
JOHANNESBURG, South Africa, May 4 /PRNewswire/ -- Gold Fields Limited (Nasdaq: GOLD; JSE: GFI) today reported strong financial results for the March 2000 quarter with a 20 per cent increase in net earnings to R231.9 million (US$36.9 million) from R192.4 million (US$31.5 million), or to 51 cents per share (US$0.08) from 43 cents per share (US$0.07), in the previous quarter.
This improvement in earnings was despite a marginally lower US Dollar gold price received, and is due to the continued drive to contain costs as well as a reduced taxation charge. Gold revenue of R1,793.4 million (US$284.7 million) was R25.4 million lower than the previous quarter due to a three per cent drop in gold production.
``Despite March being a traditionally difficult quarter, Gold Fields experienced a steady performance, highlighted by costs that continue to be under control,'' said Chris Thompson, Chairman and Chief Executive Officer of Gold Fields.
As a result of the Company's focus on cost control, operating costs for the March quarter were R2.9 million lower than the previous quarter. Cost per ton milled was reduced from R268 per ton to R257 per ton. The main contributor was Driefontein where costs were reduced quarter on quarter by R18.4 million.
Attributable production for the March quarter was 959,000 ounces at a cash cost of US$217 per ounce, compared to the December 1999 quarter's production of 990,000 ounces at a cash cost of US$220 per ounce.
The average price of gold received was R58,911 per kilogram (US$291 per ounce) compared to R58,337 per kilogram (US$296 per ounce) received in the prior quarter. The realised price for gold sold was positively impacted by the weakening in the average Rand/Dollar exchange rate from R6.12/US$ in the December quarter to R6.30/US$ in the March quarter.
Ian Cockerill, Managing Director of Gold Fields, said, ``Our focus on safe, quality mining and consistency is starting to show results and holds promise for the remainder of the year.''
Gold Fields Limited is one of the largest unhedged gold producers in the world, with annual production in excess of 4 million ounces, proven and probable reserves of 74 million ounces and resources of 152 million ounces. Gold Fields trades on the Johannesburg Stock Exchange (GFI), as well as on Nasdaq (GOLD) and on the London, Paris, Brussels, and Swiss stock exchanges.
Full results are available on the Company's website at goldfields.co.za or can be requested from the Company at the following numbers: South Africa & Europe: Willie Jacobsz, Tel: +27 11 644-2460, Fax: +27 11 484-0639; North America: Cheryl A Martin, Tel: +303 796-8683, Fax: +303 796-8293
UNAUDITED ABBREVIATED RESULTS#
S A RAND SALIENT FEATURES US DOLLARS
Quarter Quarter
December March March December
1999 2000 2000 1999
30,794 29,818 kg Gold production * oz(000) 959 990
43,210 44,001 R/kg Cash costs * $/oz 217 220
5,314 5,520 000 Tons milled 000 5,520 5,314
58,337 58,911 R/kg Revenue $/oz 291 296
45,241 46,634 R/kg Operating costs $/oz 230 230
268 257 R/ton Operating costs $/ton 41 44
400 377 Rm Operating profit $m 60 65
Earnings before exceptional
213 235 Rm items net of tax $m 37 35
47 52 SA c.p.s. US c.p.s 8 8
192 232 Rm Net earnings $m 37 32
43 51 SA c.p.s US c.p.s 8 7
* Attributable - All Companies wholly owned except for Tarkwa (71.1%)
# International Accounting Standards Basis
SOURCE: Gold Fields Limited |
