Business Context and Reporting Period
Company: Gold Fields Limited (JSE, NYSE: GFI)
Filing Type: Form 6-K (Voluntary Trading Statement)
Date: February 9, 2022
Reporting Period: Full Year 2021 (ended December 31, 2021) and Q4 2021
Context: Gold Fields is a globally diversified gold producer with operations in Australia, Chile, Ghana, Peru, and South Africa. This filing provides unaudited operational and financial guidance for FY 2021.
Key Financial and Operational Metrics
Earnings Per Share (FY 2021 Estimates)
- Headline EPS: US$0.88–0.94 (vs. US$0.83 in FY 2020)
- Basic EPS: US$0.82–0.88 (vs. US$0.82 in FY 2020)
- Normalised EPS: US$1.02–1.08 (vs. US$1.00 in FY 2020)
Operational Performance (FY 2021 Estimates)
- Attributable Gold Equivalent Production: 2,340koz (5% increase YoY; FY 2020: 2,236koz)
- All-in Costs (AIC): US$1,297/oz (FY 2020: US$1,079/oz)
- All-in Sustaining Costs (AISC): US$1,063/oz (FY 2020: US$977/oz)
Operational Performance (Q4 2021 Estimates)
- Production: 631koz (Q3 2021: 606koz)
- AIC: US$1,369/oz (Q3 2021: US$1,263/oz)
- AISC: US$1,055/oz (Q3 2021: US$1,016/oz)
Note: The filing does not provide specific figures for total revenue, net profit, cash flow, debt, or liquidity ratios.
Material Changes vs. Prior Period
- Production Growth: FY 2021 production is expected to rise 5% year-over-year, reaching the upper end of the guidance range (2,300–2,350koz).
- Cost Increases: Both AIC and AISC are expected to be higher than FY 2020. AIC increased to US$1,297/oz, driven by increased project capital expenditure at Salares Norte.
- Earnings Growth: Headline earnings are projected to increase by 6% to 13% compared to FY 2020.
Guidance, Outlook, and Risks
- Guidance Variance: FY 2021 AIC (US$1,297/oz) is below the lower end of the guidance range (US$1,310–1,350/oz). FY 2021 AISC (US$1,063/oz) is slightly above the guidance range (US$1,020–1,060/oz).
- Upcoming Release: Full FY 2021 financial results are scheduled for release on February 17, 2022.
- Audit Status: The financial information in this trading statement has not been reviewed or reported on by external auditors.
- Unusual Items: Increased project capex at Salares Norte is cited as a primary driver for higher costs.
Investor Verification Checklist
- Verify the final audited FY 2021 financial results upon release on February 17, 2022.
- Confirm the impact of the Salares Norte project capex on future cost structures.
- Review the reconciliation of the AISC variance against the original guidance range.
- Assess the sustainability of the 5% production increase in the context of global gold prices.