Business Context and Reporting Period
This Form 6-K filing by Gold Fields Limited, dated October 20, 2014, provides an updated production and cost guidance for the third quarter (Q3) of 2014. Gold Fields is an unhedged, globally diversified gold producer with operations in Australia, Ghana, Peru, and South Africa. The company maintains primary listing on the JSE with secondary listings on the NYSE, NASDAQ Dubai, Euronext Brussels, and the Swiss Exchange.
Key Financial Metrics and Guidance
Q3 2014 Guidance Update
- Attributable Gold Equivalent Production: Approximately 559,000 ounces.
- All-in Sustaining Costs (AISC): US$1,074 per ounce.
- All-in Costs (AIC): US$1,096 per ounce.
Full-Year 2014 Guidance
- Production Target: Remains unchanged at approximately 2,200,000 ounces of gold equivalent production.
- Revised AISC: Lowered to approximately US$1,090 per ounce (previously US$1,125 per ounce).
- Revised AIC: Lowered to approximately US$1,130 per ounce (previously US$1,150 per ounce).
The filing does not provide specific figures for revenue, net profit, cash flow, debt levels, or liquidity ratios for the period.
Material Changes and Outlook
Gold Fields remains on track to meet its full-year 2014 production volume targets established in February 2014. However, the company has revised its full-year cost guidance downward, indicating improved cost efficiency or lower input costs than previously anticipated. The full financial results for Q3 2014 are scheduled for release on November 20, 2014.
Investor Verification Checklist
- Verify the actual Q3 2014 production and cost performance against this guidance when results are released on November 20, 2014.
- Confirm the drivers behind the reduction in full-year AISC and AIC guidance.
- Review the upcoming full-year results for actual revenue, profit margins, and cash flow data not included in this guidance update.
- Monitor operational updates regarding the eight operating mines in Australia, Ghana, Peru, and South Africa.