Business Context and Reporting Period
This Form 6-K filing by Gold Fields Limited, dated January 7, 2010, serves as a media release providing an updated guidance outlook for the second quarter of the 2010 financial year (Q2 F2010). Gold Fields is a major unhedged gold producer with operations in South Africa, Ghana, Australia, and Peru.
Key Financial Metrics and Guidance
- Production Guidance: Attributable production for Q2 F2010 is revised to approximately 900,000 ounces (koz).
- Cash Costs: Total cash costs are expected to be approximately US$615 per ounce.
- Notional Cash Expenditure (NCE): Expected to be approximately US$900 per ounce.
- Reserves and Resources: The company holds total attributable Mineral Reserves of 81 million ounces and Mineral Resources of 271 million ounces.
Material Changes Versus Prior Guidance
Compared to the previous guidance issued on October 29, 2009, the following material changes have occurred:
- Production: Revised downward by 2.8% (from 925koz to 900koz).
- Cash Costs: Revised upward by approximately 4%.
- NCE: Revised upward by approximately 3%.
Management Commentary, Risks, and Unusual Items
The reduction in production guidance is primarily attributed to seismic-related production stoppages in South Africa. Specifically, the Driefontein mine experienced a major seismic event that resulted in an extended search and rescue operation, causing the loss of seven days of production, which represented nearly one-third of the December production month. The full financial results for the group are scheduled for publication on February 4, 2010.
Key Facts for Investor Verification
- Verify the extent of operational recovery at the Driefontein mine following the seismic event.
- Monitor the impact of the production shortfall on the full-year 2010 production targets.
- Review the upcoming full results on February 4, 2010, to assess the actual financial impact of the cost increases.
- Confirm the status of other South African operations regarding seismic risks.