Business Context and Reporting Period
This Form 6-K filing by Gold Fields Limited covers the month of February 2008, specifically dated February 1, 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 financial values for revenue, profit, cash flow, margins, debt, or liquidity for this period. The document focuses on operational status rather than financial performance metrics.
Material Changes and Operational Status
The primary material event reported is the reinstatement of power load authorization by Eskom (South Africa's power utility). Authorization for mines to increase power load from 80% to 90% was withdrawn late on February 1, 2008, but reinstated later that night. Gold Fields is cautiously remobilizing operations toward the 90% level while prioritizing safety due to the erratic nature of the power supply.
Management Commentary and Risks
- Management Commentary: Terence Goodlace, head of South African operations, stated that while the reinstatement of 90% power levels is welcomed, the company urgently requires a guarantee of sustainable supply to safely re-establish operations at these levels.
- Risks and Contingencies: The filing highlights the risk of an "erratic and uncertain power supply" which impacts operational safety and efficiency. The company is proceeding with caution regarding the remobilization of power loads.
- Outlook: 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.
Key Facts for Investor Verification
- Confirm the stability of the 90% power load authorization and whether Eskom has provided the requested guarantee of sustainable supply.
- Monitor the impact of recent power fluctuations on production volumes and safety incidents at South African operations.
- Verify the timeline for the commencement of production at the Cerro Corona mine in Peru.
- Review subsequent filings for quantitative data on how power constraints affected Q4 2007 or Q1 2008 financial results, as this filing contains no financial figures.