Business Context and Reporting Period
Company: Gold Fields Limited (JSE, NYSE: GFI)
Filing Type: Form 6-K (Trading Statement)
Reporting Period: Six months ended 30 June 2019 (H1 2019)
Date of Filing: 2 August 2019
Gold Fields is a globally diversified gold producer with operations in Australia, Chile, Ghana, Peru, and South Africa. The company holds approximately 48.1Moz of attributable gold Mineral Reserves and 96.6Moz of Mineral Resources. This filing provides preliminary trading results for H1 2019, which have not yet been audited.
Key Financial Metrics
| Metric | H1 2019 (Expected) | H1 2018 (Reported) |
|---|---|---|
| Basic Earnings Per Share (EPS) | US¢8.0 - 10.0 | Loss of US¢45.0 |
| Headline EPS (HEPS) | US¢6.8 - 7.2 | US¢8.0 |
| Normalised EPS | US¢13.0 - 17.0 | US¢5.0 |
| Attributable Gold-Equivalent Production | 1,083koz | 994koz |
| All-In Sustaining Costs (AISC) - New Guidance | US$891/oz | US$965/oz |
| All-In Costs (AIC) | US$1,106/oz | US$1,169/oz |
Note: The filing does not provide specific figures for total revenue, net profit, cash flow, debt levels, or liquidity ratios. The financial data presented is unaudited.
Material Changes vs. Prior Period
- Earnings Turnaround: Basic EPS improved from a loss of US¢45.0 in H1 2018 to an expected profit of US¢8.0-10.0 in H1 2019, representing a 118-122% improvement.
- Production Growth: Attributable gold-equivalent production increased by 9% year-over-year to 1,083koz. This increase is primarily attributed to the inclusion of the Asanko Joint Venture contribution in H1 2019.
- Cost Efficiency: All-In Costs (AIC) decreased by 5% year-over-year to US$1,106/oz, driven by a decrease in project capital. Under the new World Gold Council (WGC) guidance adopted in January 2019, AISC is reported at US$891/oz, compared to US$973/oz under the previous interpretation.
- Quarterly Trend: Q2 2019 production (541koz) was slightly lower than Q1 2019 (542koz). Q2 AISC (new guidance) rose to US$910/oz from US$871/oz in Q1.
Guidance, Outlook, and Risks
- Reporting Timeline: Full H1 2019 financial results are scheduled for release on 15 August 2019.
- Accounting Changes: The company adopted revised WGC guidance on AISC and AIC interpretation prospectively from 1 January 2019. This change affects the comparability of AISC figures with prior periods unless adjusted.
- Audit Status: The financial information in this trading statement has not been reviewed or reported on by external auditors.
- Operational Scope: The company operates eight mines and maintains projects across five countries, with a total attributable annual gold-equivalent production of approximately 2Moz.
Key Facts for Investor Verification
- Verify the final audited H1 2019 results against these unaudited trading statement estimates when released on 15 August 2019.
- Confirm the specific financial impact of the Asanko Joint Venture inclusion on production and cost metrics.
- Review the full reconciliation of AISC under the new WGC guidance versus the old interpretation to understand cost trends accurately.
- Check for any updates on project capital expenditure trends, as this was cited as a driver for the reduction in AIC.
- Monitor the company's liquidity and debt position, as these specific metrics were not disclosed in this summary filing.