Business Context and Reporting Period
This Form 6-K filing by Gold Fields Limited, dated October 19, 2011, serves as a media release providing preliminary guidance for the third quarter (Q3) ended September 30, 2011. Gold Fields is a major global gold producer with operations in South Africa, Ghana, Peru, and Australia.
Key Financial Metrics and Production
- Production Guidance: Attributable Group production for Q3 2011 is expected to be approximately 900,000 gold equivalent ounces.
- Financial Results: The filing does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity for the period. Full financial results are scheduled for release on November 10, 2011.
- Reserves: The company holds total attributable gold equivalent Mineral Reserves of 76.7 million ounces and Mineral Resources of 225.4 million ounces.
Material Changes Versus Prior Period
- Production Increase: The expected Q3 2011 production represents a 3% increase compared to the second quarter (Q2) 2011, which reported 872,000 ounces.
- Operational Context: This production improvement was achieved despite a five-day national industrial action in July regarding wage negotiations, which caused production interruptions.
Outlook, Risks, and Management Commentary
- Future Reporting: Full Q3 2011 results will be published on November 10, 2011.
- Growth Pipeline: The company maintains four major projects in resource development and feasibility, with construction decisions expected within the next 18 to 24 months.
- Risks: The filing highlights the impact of labor disputes, specifically the recent national industrial action in South Africa, as a factor affecting operations.
Key Facts for Investor Verification
- Verify the final Q3 2011 production figures against the 900,000 ounce guidance upon the November 10, 2011 results release.
- Monitor the impact of the July industrial action on full-year cost structures and margins, as specific financial data is not yet available.
- Track progress on the four major growth pipeline projects and their scheduled construction decisions.
- Confirm the company's hedging status, as the filing notes Gold Fields is one of the world's largest unhedged gold producers.