Business Context and Reporting Period
This Form 6-K filing by Gold Fields Limited (GFI) covers the period of October 2008, specifically addressing a material event reported on October 15, 2008. Gold Fields is a major unhedged gold producer with operations in South Africa, Ghana, and Australia, and a new mine in Peru. The company reported attributable production of 3.64 million ounces per annum as of the filing date.
Key Financial Metrics
The filing text does not provide specific financial data such as revenue, profit, cash flow, margins, debt, or liquidity figures for the reporting period. The document focuses exclusively on operational safety and production capacity.
- Production Capacity: 3.64 million ounces per annum from eight operating mines.
- New Production: Cerro Corona mine (Peru) commenced in August 2008 at approximately 375,000 gold equivalent ounces per annum.
- Reserves: 83 million ounces of attributable ore reserves and 251 million ounces of mineral resources.
Material Changes and Operational Events
A significant operational disruption occurred at the Driefontein Gold Mine in South Africa due to two seismic events on October 15, 2008.
- Seismic Activity: Two events occurred in short succession at the number 5 Shaft, approximately 3,000 meters below surface. The first measured 2.4 on the Richter scale; the second measured 1.0.
- Casualties: One employee was fatally injured. Four employees were injured, two seriously. One employee remains trapped.
- Operational Impact: All operations at the Driefontein Gold Mine were stopped immediately following the incident.
Outlook, Risks, and Management Commentary
Management has halted operations at the affected site to facilitate rescue and recovery efforts. Proto teams are actively searching for the trapped employee, and injured personnel are being evacuated to the mine hospital. The filing notes that further information will be released as it becomes available.
Strategic Outlook: Despite the incident, the company maintains a target to reach a production rate of approximately 4.0 million ounces per annum during the March quarter of 2009.
Risks: The event highlights the inherent geological risks associated with deep-level mining operations, specifically seismic activity.
Key Facts for Investor Verification
- Verify the status of the trapped employee and the timeline for resuming operations at Driefontein.
- Assess the potential financial impact of the mine closure on Q4 2008 production targets.
- Monitor subsequent filings for updates on the investigation into the seismic events and any changes to safety protocols.
- Confirm if the production target of 4.0 million ounces for March 2009 remains achievable given the disruption.