Business Context and Reporting Period
This Form 6-K filing by Gold Fields Limited covers the month of December 2009, specifically addressing a significant operational event at the Driefontein Gold Mine in South Africa. The company is a major global gold producer with operations in South Africa, Ghana, Australia, and Peru.
Key Financial Metrics
The filing does not provide specific revenue, profit, cash flow, margin, debt, or liquidity figures for the reporting period. It focuses exclusively on operational status and production impacts.
Material Changes and Operational Impact
- Operational Closure: The Driefontein Gold Mine suspended blasting and on-reef development activities on December 7, 2009, following seismic events that resulted in the fatal injury of two employees.
- Duration: The mine remained closed for six days to facilitate a complex rescue and recovery operation, resuming production on the morning of December 14, 2009.
- Production Impact: The suspension resulted in six days of lost production. Management states this is expected to have a material impact on production results for both the Driefontein mine and the Group for the quarter ending December 31, 2009.
Guidance, Outlook, and Management Commentary
CEO Nick Holland expressed deep regret over the loss of life and emphasized the company's commitment to safety, stating they will not mine if conditions are not safe. He highlighted the urgent need to improve the ability to manage seismic risks. Regarding financial outlook, updated production guidance for the December quarter will be provided in early January 2010, following the close of the quarter.
Investor Verification Checklist
- Verify the updated production guidance for the December 2009 quarter once released in January 2010.
- Monitor the specific quantitative impact of the six-day closure on the Group's total gold output for the fourth quarter.
- Review future safety reports regarding seismic risk management strategies at the Driefontein operation.
- Confirm the status of the rescue and recovery operations and any ongoing regulatory investigations by the Department of Mineral Resources.