Gold Fields, South Africa’s second largest gold producer, said on Thursday it had recorded its third successive quarter of record earnings.
In a statement, the company said for the quarter ended June 30 net earnings rose 12% to R1,2-billion or 251c per share.
Revenue increased by R83-million to R3,8-billion despite a three percent reduction in the gold price received, which was attributed to the strengthening of the rand. However, the rise in the gold price during the period under review partially offset the
currency’s strength, Gold Fields said.
”Operating profit remained flat at R1,6-billion.
Operating cash flow for the quarter was R1,4-billion and net cash flow, after taking into account investing and financing activities, was R362-million as compared to R873-million in the March quarter, which left a cash balance at the end of June 2002 of R2-billion , a 17% increase over the previous quarter,” Gold Fields said.
”Cash, net of both long and short-term debt, was R141-million, leaving the company with a strong balance sheet. Gold Fields remains fully leveraged to the price of gold having no gold hedges in place.”
Gold production increased by seven percent while cash costs increased from $160 to $170 per ounce which was attributed to the strengthening of the rand.
The company also reported that its year-end net earnings came in at R3,1-billion, or 662c per share, compared to last year’s loss of R906-million.
Attributable gold production rose from 3,66-million ounces during the 2001 financial year to 4,11-million ounces for fiscal 2002.
Gold Fields said a final dividend of 310 cents per share would be paid out to shareholders. – Sapa