Business Context and Reporting Period
This Form 6-K filing by Gold Fields Limited, dated March 19, 2009, reports the assignment of an investment-grade credit rating by Standard & Poor's (S&P). Gold Fields is the world's fourth-largest gold producer with operations in South Africa, Ghana, Australia, and Peru. The company is listed on the JSE, NYSE, NASDAQ Dubai, NYX, and SWX.
Key Financial Metrics and Credit Profile
- Credit Rating: S&P assigned a 'BBB-/A-3' long-term and short-term global corporate credit rating and a 'zaA/zaA-1' South Africa national scale rating.
- Outlook: Stable.
- Production Capacity: Attributable production of 3.64 million ounces per annum from eight mines, with a ninth mine (Cerro Corona) producing approximately 375,000 gold equivalent ounces per annum.
- Reserves: Total attributable ore reserves of 83 million ounces and mineral resources of 251 million ounces.
- Reserve Life: Industry-leading long reserve life of over 20 years.
- Liquidity and Leverage: S&P cites "adequate liquidity" and "moderate" leverage and financial policy.
Note: Specific revenue, profit, cash flow, or debt figures for the reporting period are not provided in this filing text.
Material Changes and Operational Targets
The primary material change reported is the upgrade to an investment-grade credit rating. Operationally, the company aims to reach a production rate of approximately 4.0 million ounces per annum during the March quarter of 2009, driven by the ramp-up of the Cerro Corona mine in Peru.
Guidance, Outlook, and Management Commentary
- Management Commentary: CFO Paul Schmidt stated the rating confirms sound corporate governance and risk management. He noted the intention to reduce debt over the next 18 months while maintaining flexibility to structure long-term debt if needed.
- Outlook Drivers: The stable outlook is supported by expectations of healthy cash flow generation, strong gold prices, and a weak exchange rate.
- Risk Profile: S&P assessed the business risk as satisfactory and financial risk as intermediate.
Key Facts for Investor Verification
- Verify the specific debt reduction targets and timeline mentioned for the next 18 months in subsequent financial reports.
- Confirm the actual production figures for the March 2009 quarter against the 4.0 million ounce target.
- Monitor the impact of the weak exchange rate on reported cash flows and profitability in upcoming earnings releases.
- Review the full S&P rating report for detailed assumptions regarding the "intermediate financial risk" profile.