Gold Fields Limited recorded an improved operating profit of R637-million for the December 2004 quarter, the mining company said on Monday. This compared to a profit of R456-million in the September quarter last year, Gold Fields said in a statement.
It said net earnings — excluding gains and losses on financial instruments and foreign debt net of cash and exceptional items — amounted to R101-million.
Both the operating profit and the net earnings were up from the September 2004 quarter.
Gold Fields chief executive Ian Cockerill said despite Harmony’s hostile bid for Gold Fields, his company had again delivered a solid operational performance.
”As forecast, operating profit for the December 2004 quarter increased by 40%,” he said.
”This was largely as a result of the flow-through of benefits from sustainable revenue enhancement and cost reduction projects implemented specifically at the South African operations over the past year.”
Total attributable gold production increased by four percent, as did the production at the South African operations.
Rand-per-kilogram unit costs declined again, and total rand-per-tonne costs declined by more than five per cent, despite continuing inflation pressures.
The group margin increased from 17% to more than 20%, while the margin for the South African operations was restored to double digits.
”It is particularly pleasing to note that the South African operations’ operating costs for the December 2004 quarter have reduced by more than two percent when compared with the December 2003 quarter,” said Cockerill.
”This is despite the increase in gold production and a seven percent wage increase in June 2004.
”Gold Fields is in excellent shape with all operations delivering to expectations. Performance for the third quarter, traditionally a difficult period as it includes the effects of the Christmas break, is expected to improve yet again.” – Sapa