Business Context and Reporting Period
Company: Gold Fields Limited
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Date: February 23, 2010
Reporting Period: Third Quarter of Fiscal Year 2010 (Q3 F2010)
Gold Fields Limited is a major global gold producer with operations in South Africa, Ghana, Australia, and Peru. The company reported an attributable production run rate of 3.6 million ounces per annum as of the fourth quarter of F2009.
Key Financial Metrics and Operational Data
The filing focuses on operational guidance revisions rather than finalized financial statements for the period.
- Production Guidance (Q3 F2010): Revised to approximately 5% below the previous guidance of 850,000 ounces.
- Production Guidance (Q4 F2010): Expected to return to recent levels of approximately 5,000 kilograms of gold.
- Cost Impact: Lower production is expected to negatively impact cash costs and Net Cash Earnings (NCE) on a per ounce basis.
- Reserves: Total attributable Mineral Reserves of 81 million ounces and Mineral Resources of 271 million ounces.
- Financials: The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity for the current period.
Material Changes Versus Prior Period
The primary material change is a downward revision of Q3 F2010 production guidance compared to the guidance issued on February 4, 2010.
- Previous Guidance: 850,000 ounces for Q3 F2010.
- Revised Guidance: Approximately 5% lower than 850,000 ounces.
- Cause: Accelerated replacement of a water pump column in the Main Shaft at the Kloof Gold Mine in South Africa due to significant corrosion and premature failure of sections.
Guidance, Outlook, and Management Commentary
Management Commentary: The decision to halt production for maintenance aligns with the Group's safety philosophy: "if we cannot mine safely, we will not mine," and the "stop, think fix, verify and continue programme."
Outlook:
- Production is expected to return to normal levels by the end of the March Quarter (Q3 F2010).
- Q4 F2010 production is projected to be close to recent levels (approx. 5,000 kg).
Risks and Contingencies:
- Operational Risk: Equipment failure (corrosion) requiring unplanned maintenance.
- Financial Risk: Increased per-ounce costs and reduced NCE due to lower output volumes in Q3.
Key Facts for Investor Verification
- Verify the exact revised production figure for Q3 F2010 (stated as ~5% below 850,000 ounces).
- Monitor the impact of the production shortfall on Q3 cash costs and NCE per ounce in the upcoming earnings report.
- Confirm the timeline for the completion of the water pump column replacement at Kloof Gold Mine.
- Review subsequent filings for actual Q3 production results to validate the "return to normal levels" forecast.