Business Context and Reporting Period
This Form 6-K filing by Gold Fields Limited covers the period ending July 6, 2011, and primarily serves to announce guidance for the second quarter (Q2) of 2011 (ended June 30, 2011). Gold Fields is a major unhedged gold producer with operations in South Africa, Australia, Ghana, and Peru.
Key Financial and Operational Metrics
- Production Guidance: Attributable Group production for Q2 2011 is expected to be approximately 872,000 gold equivalent ounces.
- Total Cash Costs: Expected to be approximately US$815 per ounce (R175,000/kg).
- Notional Cash Expenditure (NCE): Expected to be approximately US$1,185 per ounce (R260,000/kg).
- Reserves and Resources: Total attributable gold equivalent Mineral Reserves stand at 76.7 million ounces, with Mineral Resources of 225.4 million ounces.
- Annualized Production: Approximately 3.6 million gold equivalent ounces.
Material Changes and Operational Impacts
Q2 2011 production represents a 5% increase compared to Q1 2011 (830,000 ounces). However, operations faced specific disruptions:
- South Africa Region: Production was impacted by six public holidays and two significant seismic-related accidents at the KDC (Kloof Driefontein Complex) mine, necessitating safety interventions and production stoppages.
- Australasia Region: Production was affected by a week-long, unplanned mill outage at the St Ives mine.
- Remediation: Remedial actions for both the seismic accidents and the mill outage were satisfactorily completed during the latter part of Q2 2011.
Guidance, Outlook, and Management Commentary
Management has provided specific guidance for Q2 2011 production and costs. The full financial results for Q2 2011 and the first half of 2011 are scheduled for publication on August 11, 2011. The company maintains an extensive growth pipeline with four major projects in resource development and feasibility, with construction decisions expected within the next 18 to 24 months.
Note: This filing does not provide specific figures for revenue, net profit, cash flow, debt levels, or liquidity ratios, as these are reserved for the full results announcement.
Key Facts for Investor Verification
- Verify the final Q2 2011 production figures against the 872,000 ounce guidance upon the August 11, 2011 results release.
- Confirm the actual total cash costs and NCE against the US$815/oz and US$1,185/oz estimates.
- Monitor the operational status of the KDC mine and St Ives mill to ensure no recurring seismic or mechanical issues impact Q3 2011 production.
- Review the upcoming full results for detailed revenue, profit, and liquidity metrics not included in this guidance release.