Gold Fields Ltd Q4F 2006 Results
Thursday August 3, 3:31 am ET
Operating Profit up 40 Per Cent With a Final Dividend of 110 SA Cents Per Share Declared
JOHANNESBURG, August 3 /PRNewswire-FirstCall/ -- Gold Fields Limited (NYSE & JSE: GFI) today announced June 2006 quarter net earnings of R604 million compared with R483 million in the March 2006 quarter and negative R27 million for the June quarter of 2005. In US dollar terms net earnings for the June 2006 quarter were US$95 million compared with US$76 million in the March 2006 quarter and negative US$5 million for the June quarter of 2005. Net earnings excluding gains and losses on financial instruments and foreign debt net of cash and exceptional items were R536 million (US$84 million) for the June 2006 quarter compared with R376 million (US$60 million) for the March 2006 quarter, an increase of 43 per cent.
June 2006 quarter highlights:
- Attributable gold production in line with the March quarter
at 1,018,000 ounces;
- Average gold price up 18 per cent to R128,974 per kilogram
and up 13 per cent in US dollar terms to $628 per ounce;
- Operating margin increased from 32 per cent to 38 per cent;
- Significant improvement in performance from the Kloof mine;
- Purchase of 21.3 million shares in Western Areas Limited
increases Gold Fields stake to 18.9 per cent.
Financial year highlights:
- Attributable gold produced 4.1 million ounces for the year;
- Cost saving initiatives on track and delivering results;
- Earnings increase eleven fold from R128 million to R1,389
million and from US$21 million to US$217 million;
- Acquisition of Cerro Corona and Bolivar completed;
- Construction begins at Cerro Corona;
- Norilsk Nickel disposes of its entire 20 per cent stake in
Gold Fields during the year.
Final dividend number 65 of 110 SA cents per share, giving a total dividend of 150 SA cents per share for the year.
Ian Cockerill, Chief Executive Officer of Gold Fields said:
"Gold Fields delivered a solid set of results broadly in line with guidance provided at the end of the previous quarter. We are particularly pleased that we have been able, through effective cost control, to see a significant part of the higher gold price flow through to the bottom line. Operating profit this quarter increased 40 per cent with the Group margin increasing from 32 per cent to 38 per cent and the South African margin increasing from 22 per cent to 34 per cent.
The South African operations, led by a resurgent Kloof, delivered the anticipated improvements, while the international operations declined from an unsustainably high base in the March quarter. Total cash costs were well controlled despite the high inflationary environment around the globe.
During the September quarter the focus will remain on the mining of quality volumes and tight cost control to mitigate the strong inflationary pressures and to ensure that shareholders reap the benefit of the stronger gold price."
The full results are available on the Gold Fields website:
www.goldfields.co.za
the complete gold company
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Source: Gold Fields Limited
