Business Context and Reporting Period
This Form 6-K filing by Gold Fields Limited, dated April 3, 2013, provides a guidance update for the first quarter (Q1) of 2013. The company is a significant unhedged gold producer with operations in Australia, Ghana, Peru, and South Africa. Notably, in February 2013, Gold Fields unbundled its KDC and Beatrix mines into a separately listed entity, Sibanye Gold. Consequently, the company distinguishes between "new Gold Fields" (excluding Sibanye) and reported figures that must include two months of Sibanye production for accounting purposes.
Key Financial Metrics and Guidance
The filing outlines production and cost guidance for Q1 2013 under two scenarios:
- New Gold Fields (Excluding Sibanye):
- Production: Expected 476,000 gold-equivalent ounces.
- Cash Costs: Approximately US$830/oz.
- Net Cash Expenditure (NCE): Approximately US$1,290/oz.
- Reported Figures (Including 2 months of Sibanye):
- Production: Expected 662,000 gold-equivalent ounces.
- Total Cash Costs: Approximately US$915/oz.
- NCE: Approximately US$1,325/oz.
Full-year 2013 guidance for the new Gold Fields remains between 1,825,000 and 1,900,000 ounces, with cash cost guidance of US$860/oz and NCE guidance of US$1,360/oz.
Material Changes and Unusual Items
The primary material change is the structural separation of Sibanye Gold. While the "new Gold Fields" performance is in-line with full-year guidance, the reported Q1 2013 results will include two months of production from Sibanye Gold (January and February 2013) due to accounting requirements. This inclusion results in higher reported production volumes and different cost metrics compared to the standalone new Gold Fields figures.
Outlook and Management Commentary
Management indicates that the Q1 2013 performance for the new Gold Fields is consistent with the full-year 2013 guidance. The company expects to release its official Q1 2013 results on Friday, May 10, 2013. The filing does not provide specific commentary on liquidity, debt levels, or cash flow beyond the cost per ounce metrics.
Investor Verification Checklist
- Verify the distinction between "new Gold Fields" metrics and reported metrics including Sibanye Gold when analyzing Q1 2013 results.
- Confirm the final Q1 2013 results upon release on May 10, 2013, to compare actuals against the provided guidance.
- Review the impact of the Sibanye Gold unbundling on the company's long-term production capacity and cost structure.
- Note that the filing does not provide specific data on total revenue, net profit, or debt levels for the period.