Business Context and Reporting Period
This Form 6-K filing by Gold Fields Limited, dated July 11, 2013, provides a media release regarding the company's performance for the second quarter (Q2) of 2013, ending June 30, 2013. Gold Fields is a significant unhedged gold producer with operations in Australia, Ghana, Peru, and South Africa. The company recently unbundled its KDC and Beatrix mines into Sibanye Gold in February 2013.
Key Financial and Operational Metrics
- Q2 2013 Production: Expected attributable Group production of 451,000 gold-equivalent ounces.
- Cash Costs: Approximately US$860 per ounce.
- Notional Cash Expenditure (NCE): Approximately US$1,250 per ounce.
- Reserves and Resources: Total managed gold-equivalent Mineral Reserves of 64 million ounces and Mineral Resources of 155 million ounces.
The filing does not provide specific revenue, net profit, cash flow, debt, or liquidity figures for the period.
Material Changes Versus Prior Period
Production for Q2 2013 represents a 5% decline compared to Q1 2013, amounting to a decrease of approximately 25,000 ounces. This reduction was primarily caused by an illegal strike at the Tarkwa and Damang mines in Ghana, which has since been resolved.
Guidance, Outlook, and Management Commentary
Despite the Q2 production decline, management states the company remains on track to achieve its 2013 annual guidance:
- 2013 Production Guidance: Between 1,825,000 and 1,900,000 ounces.
- 2013 Cash Cost Guidance: US$860 per ounce.
- 2013 NCE Guidance: US$1,360 per ounce.
Reporting Changes: Starting with the Q2 2013 results (scheduled for release on August 22, 2013), Gold Fields will adopt the World Gold Council's new metrics: 'all-in sustaining costs' (AISC) and 'all-in costs' (AIC). Consequently, the reporting of cash costs and NCE will be phased out by the end of 2013.
Investor Verification Checklist
- Verify the resolution and ongoing impact of the illegal strike at the Tarkwa and Damang mines in Ghana on future production schedules.
- Confirm the transition to AISC and AIC reporting metrics in the upcoming August 22, 2013 results release.
- Monitor whether the Q2 production shortfall affects the ability to meet the lower end of the 2013 annual production guidance (1,825,000 ounces).
- Review the upcoming full financial results for specific revenue, profit, and liquidity data not included in this preliminary announcement.