Gold Fields reported September 2005 quarter net earnings of R39-million on Wednesday, compared with a loss of R27-million in the June 2005 quarter and earnings of R89-million for the September quarter of 2004.
It said in US dollar terms net earnings for the September 2005 quarter equated to $6-million, compared with a loss of $5-million in the June 2005 quarter and earnings $14-million for the September quarter of 2004.
Net earnings — excluding gains and losses on financial instruments and foreign debt net of cash and exceptional items — were R44-million ($7-million) for the September 2005 quarter, compared to R217-million ($35-million) in the June quarter.
Salient features of the September 2005 quarter included the following:
- Attributable gold production decreased eight per cent to 993 000 ounces, half of which is attributable to the strike in South Africa;
- Operating costs declined by one per cent to R2,46-billion despite the 6,5% increases at the South African operations;
- Total cash costs were R72 768 per kilogram ($347 per ounce), seven per cent higher than the previous quarter due to lower production;
- An operating profit of R554-million ($85-million).
Ian Cockerill, chief executive officer of Gold Fields said: ”During the September quarter gold production declined by eight percent. Approximately half of this was as a result of strike action, and the balance due to operational issues that we flagged in the guidance provided with the results for the June quarter. These issues have largely been resolved.”
In the final month of the September quarter all operations showed positive trends, which were carried over into October, Gold Fields said in a statement. – Sapa