Business Context and Reporting Period
This Form 6-K filing by Gold Fields Limited covers the month of November 2007, with a media release dated January 31, 2008. Gold Fields is a major unhedged gold producer with operations in South Africa, Ghana, and Australia, and a developing mine in Peru. The company employs approximately 47,000 permanent staff and is listed on the JSE, NYSE, and DIFX.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity for the reporting period. The document focuses on operational status rather than financial performance data.
Material Changes and Operational Updates
- Power Restrictions: Eskom, the South African power utility, temporarily withdrew authorization for the mining industry to increase electricity load from 80% to 90%.
- Production Impact: To comply with Eskom's directive to protect system stability, Gold Fields reduced production at its operations back to the 80% power level.
- Future Capacity: The Cerro Corona Gold/Copper mine in Peru is expected to commence production by mid-2008 at an initial rate of approximately 400,000 gold equivalent ounces per annum.
Outlook, Risks, and Management Commentary
Management expressed disappointment regarding the withdrawal of power authorization. The primary risk highlighted is system instability and frequency decay in the South African power grid, which forces operational constraints. The company cites safety as the priority for pulling back production levels. No specific financial guidance or unusual items were disclosed in this text.
Key Facts for Investor Verification
- Confirm the duration of the 80% power load restriction and its specific impact on quarterly production targets.
- Verify the timeline for the Cerro Corona mine's commencement of production in mid-2008.
- Monitor Eskom's announcements regarding future electricity load authorization for the mining sector.
- Review subsequent filings for financial impact analysis resulting from the production reduction.