Searle,
This alone show Bill's trip may have done some good.
Richard
Friday February 16, 10:39 am Eastern Time
Press Release
SOURCE: Gold Fields Limited
Gold Fields Limited Closes Out Hedge Position
JOHANNESBURG, South Africa, Feb. 16 /CNW/ -- Gold Fields Limited (Nasdaq: GOLD; JSE: GFI) today announced that it had closed out the last of its remaining hedge positions.
Chris Thompson, Chairman and Chief Executive Officer of Gold Fields said: "Gold Fields is now totally unhedged, which is an affirmation of our policy in this regard."
Gold Fields bought back 160,000 ounces of gold forward sales at an average spot price of US$256.10 per ounce, to generate a net profit of approximately US$4.5 million.
The hedge position was held by Gold Fields Ghana (71% owned), and was required by lenders to the Tarkwa Gold Mine in terms of potential debt covenant obligations.
As a consequence of closing out the hedges and given the substantial cash that has been built up in Gold Fields Ghana, it has also been decided to retire all or a substantial portion of the remaining project loan of US$25 million held by Gold Fields Ghana.
"We thought this was an opportune time to close out the last of our hedges, given the current weakness in the gold price, which we believe is not sustainable," said Thompson.
Gold Fields Limited is one of the world's largest gold producers with approximately four million ounces of gold production per annum, 145 million ounces of mineral resources, and reserves of 70 million ounces. Gold Fields is focused on increasing value at its existing operations and on international growth. In addition to being listed on the Johannesburg (GFI), London, Paris and Swiss Stock Exchanges, Gold Fields trades on Nasdaq (GOLD) through an American Depositary Receipt programme and on the Brussels Stock Exchange through an International Depositary Receipt programme.
For further information
South Africa: Willie Jacobsz of Gold Fields Limited, +27 11 644-2460, or fax, +27 11 484-0639
or North America: Cheryl A. Martin for Gold Fields Limited, 303-796-8683, or fax, 303-796-8293
Web site: goldfields.co.za
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