Business Context and Reporting Period
Gold Fields Limited, a major unhedged gold producer with operations in South Africa, Ghana, Australia, and Peru, filed this Form 6-K on May 22, 2006. The filing reports on the Mineral Resource and Ore Reserve Statement for the six-month period ended December 31, 2005. The company aligned its reporting cycle from June 30 to December 31 to match its financial reporting schedule.
Key Financial and Operational Metrics
- Mineral Resources: 179.3 million ounces (inclusive of Ore Reserves).
- Ore Reserves: 65.3 million ounces.
- Annual Gold Production: Approximately 4.2 million ounces.
- Valuation Assumptions: Resources calculated using gold prices of R105,000/kg (South Africa), A$650/kg (Australia), and US$475/oz (Ghana/Peru). Reserves calculated using R92,000/kg (South Africa), A$560/kg (Australia), and US$400/oz (Ghana/Peru).
- Financial Data: The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity.
Material Changes Versus Prior Period
- Resource Growth: Mineral Resources increased by 3% to 179.3 million ounces.
- Reserve Growth: Ore Reserves increased by 1% to 65.3 million ounces.
- Reporting Cycle: The company shifted its reporting period end date from June 30 to December 31.
- Price Sensitivity: Management noted that if a spot price of R130,000 per kilogram had been used instead of the SEC-mandated trailing average, South African reserves would have been approximately 9.5 million ounces higher.
Guidance, Outlook, and Management Commentary
CEO Ian Cockerill stated that the company successfully replaced mined reserves and increased its overall resource position despite using a conservative SEC-mandated 3-year trailing average gold price, which was below prevailing spot prices. The company maintains a developing mine at Cerro Corona in Peru and holds primary listing on the Johannesburg Securities Exchange with secondary listings on the NYSE, LSE, Euronext, and Swiss Exchange. All operations are ISO 14001 certified.
Investor Verification Checklist
- Verify the full Mineral Resource and Ore Reserve Declaration on the company website (www.goldfields.co.za).
- Confirm the impact of the SEC-mandated 3-year trailing average gold price on reported reserves versus current spot prices.
- Review the development status and timeline for the Cerro Corona mine in Peru.
- Check subsequent filings for specific financial metrics (revenue, profit, cash flow) which were not included in this specific 6-K.