Business Context and Reporting Period
Company: Gold Fields Limited
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Date: January 18, 2012
Reporting Period: Financial Year ended December 2011 (FY 2011) and Fourth Quarter 2011 (Q4 2011)
Operations: Gold producer with mines in Australia, Ghana, Peru, and South Africa.
Key Financial and Operational Metrics
| Metric | Value | Period |
|---|---|---|
| Attributable Group Production | 3.49 million gold equivalent ounces | FY 2011 |
| Attributable Group Production | 883,000 gold equivalent ounces | Q4 2011 |
| Total Cash Cost | ~US$800/oz (R185,000/kg) | FY 2011 |
| Notional Cash Expenditure (NCE) | ~US$1,180/oz (R275,000/kg) | FY 2011 |
| Total Cash Cost | ~US$770/oz (R200,000/kg) | Q4 2011 |
| Notional Cash Expenditure (NCE) | ~US$1,210/oz (R315,000/kg) | Q4 2011 |
Note: Revenue, profit, cash flow, debt, and liquidity figures are not provided in this filing; full results are scheduled for release on February 17, 2012.
Material Changes and Operational Drivers
- Production Decline: Q4 2011 production (883,000 oz) was 1.9% lower than Q3 2011 (900,000 oz).
- Cost Performance: FY 2011 total cash costs and NCE came in lower than the guidance issued on November 10, 2011 (Guidance: US$810/oz cash cost, US$1,200/oz NCE).
- Regional Disruptions:
- Ghana: Power outages and slower milling rates at Tarkwa due to harder material blends.
- South Africa: "Stop and fix" interventions at Beatrix and lower underground grades at South Deep due to mining mix changes.
- Peru: Lower gold equivalent production at Cerro Corona due to a lower copper price relative to gold.
Outlook, Risks, and Management Commentary
- Upcoming Release: Detailed quarterly and full-year financial results are expected on February 17, 2012.
- Growth Pipeline: The company maintains four major projects in resource development and feasibility, with construction decisions anticipated within the next 18 to 24 months.
- Risks: Operational risks include power instability (Ghana), geological variability affecting milling rates and grades (South Africa), and commodity price volatility impacting gold equivalent calculations (Peru).
Key Facts for Investor Verification
- Verify the final audited revenue and net profit figures when the full results are released on February 17, 2012.
- Confirm the extent of production recovery in Ghana following the reported power outages.
- Monitor the impact of the "stop and fix" interventions at Beatrix on future South African output.
- Review the sensitivity of Cerro Corona's gold equivalent production to future copper price fluctuations.
- Validate the timeline for construction decisions on the four major growth pipeline projects.