/ 26 May 2000

Gold Fields warns shareholders of changes

OWN CORRESPONDENT, Johannesburg | Friday 10.30am.

GOLD Fields Limited, the world’s second largest gold producer, warned shareholders on Thursday that prices may move because the company is in discussions “with a number of parties.”

“Shareholders of Gold Field Limited [JSE – GFL, Nasdaq – GOLD] are advised that, as a consequence of Gold Fields being involved in discussions with a number of parties, the price of Gold Fields securities may be materially affected,” said a brief statement issued at the end of the trading day.

“Accordingly, shareholders are advised to exercise caution when dealing in the company’s securities until a full announcement is made,” it said, giving no further details.

Gold Fields reported on February 3 earnings totalling R192-million rand for the quarter ended December, compared with a loss of R88-million in the previous quarter.

Earnings per share were boosted to 47c for the October-December period, compared to 5c for the July-September quarter.

“This significant improvement is attributable to a higher gold price achieved during the quarter, a turnaround at Driefontein [mine] and lower working costs,” a Gold Fields statement said then.

It said the average gold price for the quarter was $296 per ounce, compared with $269 in the previous quarter.

Gold produced in the October-December quarter was 30794kg compared with 29940kg in the previous quarter, Gold Fields said.

The Driefontein mine increased its output by 1162kg without increasing working costs due to better ore grades and improved mining efficiencies, the company said.