Business Context and Reporting Period
This Form 6-K filing by Gold Fields Limited covers the month of December 2008, specifically dated December 23, 2008. The report serves as an operational update regarding guidance for the second quarter of the 2009 financial year (Q2 F2009). Gold Fields is a major unhedged gold producer with operations in South Africa, Ghana, Australia, and Peru.
Key Financial and Operational Metrics
- Production Guidance: Group attributable production for Q2 F2009 is expected to be approximately 840,000 ounces.
- Cost Guidance: Group cash costs and Notional Cash Expenditure are expected to be lower than previously published guidance due to favorable exchange rate movements.
- Cost Benchmarks: If calculated at the exchange rates used in the October 2008 guidance ($/R8.00 and A$/$0.85), costs would align with R149,000/kg ($580/oz) for cash costs and R229,000/kg ($890/oz) for Notional Cash Expenditure.
- Reserves and Resources: The company holds total attributable ore reserves of 83 million ounces and mineral resources of 251 million ounces.
- Annual Production Context: Current attributable production is 3.64 million ounces per annum, with a target of 4.0 million ounces per annum by the March quarter of 2009.
Material Changes and Operational Updates
Production guidance for Q2 F2009 remains unchanged from the guidance issued on October 29, 2008. However, cost expectations have improved relative to prior guidance due to favorable currency movements against the South African Rand and Australian Dollar. The filing highlights significant operational progress, including the substantial completion of steel infrastructure rehabilitation at the Kloof Main Shaft and the expansion of the Tarkwa Carbon In Leach (CIL) plant. These projects are on track for full production build-up by early January 2009.
Guidance, Outlook, and Management Commentary
CEO Nick Holland expressed satisfaction with improved production and cost control. Management aims to restore production closer to historical levels, targeting a run rate of 1 million ounces per quarter in the near term. The company anticipates reaching an annual production rate of approximately 4.0 million ounces during the March quarter of 2009. Detailed financial results for Q2 F2009 are scheduled for publication on January 29, 2009. The filing does not provide specific numerical data regarding revenue, net profit, cash flow, debt levels, or liquidity ratios for the reporting period.
Investor Verification Checklist
- Verify the actual Q2 F2009 production figures against the 840,000 ounce guidance when results are released on January 29, 2009.
- Confirm the realized impact of exchange rate fluctuations on final cash costs and Notional Cash Expenditure.
- Monitor the operational ramp-up of the Kloof Main Shaft and Tarkwa CIL plant to ensure they meet the early January 2009 full production timeline.
- Track progress toward the 4.0 million ounces per annum production target for the March quarter of 2009.