Business Context and Reporting Period
Company: Gold Fields Limited
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Date: June 25, 2008
Reporting Period: Fourth Quarter of Fiscal Year 2008 (Q4 F2008)
Context: Gold Fields is a major global gold producer with operations in South Africa, Ghana, Australia, and Peru. The company is listed on the JSE, NYSE, and DIFX.
Key Financial and Operational Metrics
- Production Outlook (Q4 F2008): Group attributable production is expected to increase approximately 4.5% compared to Q3 F2008.
- Regional Performance:
- South Africa: Production expected to rise ~6.6% vs. Q3 F2008 (exceeding prior guidance of 2-4% growth) due to improved mining quality at Beatrix.
- International Mines: Production expected to remain flat, consistent with prior guidance.
- Cash Costs: Preliminary indications suggest group cash costs in US$ terms will be similar to the previous quarter.
- Reserves and Resources: Total attributable ore reserves of 92 million ounces; mineral resources of 252 million ounces.
- Annual Production Capacity: Approaching four million ounces per annum.
Material Changes and Project Updates
The filing highlights a positive variance in South African production guidance, driven by operational improvements at the Beatrix mine. Several strategic projects are on track for commissioning:
- Cerro Corona (Peru): On track to commence production and concentrate shipment in Q1 F2009.
- St Ives (Australia): Two new underground mines commissioned and currently in the build-up phase.
- Tarkwa (Ghana): CIL Plant expansion on track for completion and build-up commencement in Q2 F2009.
- Full Production Target: All mentioned projects are expected to reach full production by the end of Q2 F2009, enhancing the overall production profile.
Guidance, Outlook, and Risks
Outlook: Management states that Q4 F2008 operational results will be better than the guidance provided on May 9, 2008. The company anticipates an increased production profile following the ramp-up of new projects in the first half of F2009.
Financial Reporting: Full results for F2008 and Q4 F2008 are scheduled for publication on August 1, 2008.
Risks and Contingencies: The filing text does not explicitly detail specific risks or contingencies beyond the operational timelines for project completions. The company notes it is an unhedged producer of gold.
Investor Verification Checklist
- Verify the actual Q4 F2008 production figures against the 4.5% growth guidance upon the August 1, 2008 results release.
- Confirm the specific cash cost per ounce figures in the upcoming full report to validate the "similar to previous quarter" indication.
- Monitor the commissioning timelines for Cerro Corona, St Ives, and Tarkwa to ensure they meet the Q1/Q2 F2009 targets.
- Review the detailed breakdown of South African production to confirm the 6.6% increase attributed to Beatrix.