Business Context and Reporting Period
This Form 6-K filing by Gold Fields Limited, dated September 23, 2010, provides preliminary guidance for the September quarter 2010. Gold Fields is a major unhedged gold producer with operations in South Africa, Ghana, Australia, and Peru. The company holds total attributable gold equivalent Mineral Reserves of 78 million ounces and Mineral Resources of 281 million ounces.
Key Financial Metrics and Guidance
- Production: Attributable Group production is expected to be approximately 906,000 ounces.
- Total Cash Cost: Expected to be approximately US$715 per ounce.
- Notional Cash Expenditure (NCE): Expected to be approximately US$1,020 per ounce.
- Exchange Rate Assumptions: Guidance is based on US$/R7.35 and A$/US$0.88.
The filing does not provide specific values for revenue, net profit, operating cash flow, debt levels, or liquidity ratios for this period.
Material Changes and Operational Impacts
Costs in South Africa during the September quarter were impacted by winter electricity tariffs. The higher Notional Cash Expenditure (NCE) is attributed to planned capital expenditure increases for the September and December quarters of 2010.
Outlook and Management Commentary
CEO Nick Holland stated that the company is pleased with progress and remains on track to achieve its annual guidance for the 12 months ending June 2011. Full results for the September quarter are scheduled for publication on November 4, 2010.
Investor Verification Checklist
- Verify the final production figures and cost metrics when results are released on November 4, 2010.
- Monitor the impact of South African winter electricity tariffs on future cost structures.
- Confirm the execution of the higher capital expenditure plan for the December 2010 quarter.
- Track fluctuations in the ZAR/USD and AUD/USD exchange rates against the guidance assumptions of R7.35 and A$0.88.