Foreign Filer Report • Feb 13, 2014
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JOHANNESBURG. 13 February 2014 , Gold Fields Limited (NYSE& JSE: GFI) today announced normalised earnings from continuing operations for the December 2013 quarter of US$14 million compared with US$12 million in the September 2013 quarter and US$127 million in the December 2012 quarter. In Rand terms the normalised earnings for the December 2013 quarter of R145 million compared with R120 million in the September 2013 quarter and R1,080 million in the December 2012 quarter.
· Yilgarn South acquisition provides 114,000 ounces at NCE of US$977 per ounce in maiden quarter
Statement by Nick Holland, Chief Executive Officer of Gold Fields:
During the December 2013 quarter the Group made meaningful progress on all fronts of this process:
The Group’s total all-in cost of US$1,095 per ounce for the quarter reflects an improvement of 7 per cent on the US$1,176 per ounce achieved in the September 2013 quarter and a 32 per cent improvement on the US$1,621 per ounce reported in the December 2012 quarter.
South Deep’s all-in cost of US$1,436 per ounce (R466,908 per kilogram) was 10 per cent lower than the US$1,599 per ounce (R513,149 per kilogram) achieved in the September 2013 quarter and 41 per cent lower than the all-in cost for the quarter ended 31 December 2012 of US$2,436 per ounce (R679,026 per kilogram). During the quarter, South Deep’s cost base was right-sized to match its slower than anticipated production build-up, as discussed below.
If South Deep is excluded, then the Group all-in cost is US$1,040 per ounce for the December 2013 quarter, indicating the robustness of the international portfolio, including for the first time the Yilgarn South assets.
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the December quarter . Total Recordable Injury Frequency rate (TRIFR) = (Fatalities + Lost Time Injuries + Restricted Work Injuries + Medically Treatment Injuries) x 1,000,000/number of man-hours worked.
· US$90 million (R928 million) at the Arctic Platinum project
Progress against the Mine Health and Safety Council (MHSC) milestone, that no machinery or piece of equipment such as mechanised mobile equipment, fans and pumps may generate a sound pressure level in excess of 110dB (A) after December 2013, is ongoing. The number of measurements expressed as a percentage of noise measurements of machinery and equipment emitting noise in excess of 110dB (A) increased from nil per cent in the September quarter to 1.44 per cent in the December quarter (This increase related to only three items of equipment). All three of these high readings were due to mechanical breakdown and the items were replaced and/or repaired immediately. Silencing of equipment is ongoing, with continued focus on silencing of fans and planned maintenance programs on mechanised mobile equipment. The percentage of employees exposed to >85dB (A) decreased from 55.6 per cent in the September quarter to 51.0 per cent in the December quarter. This measurement is without hearing protection, which is currently provided and almost universally used. (The Group complies with the milestone on equipment but employees failing to use hearing protection devices are at risk of being over exposed. If all the Group employees wear their hearing protective devices correctly at all times in high noise zones none of them is expected to be over exposed). South Deep is currently initiating a hearing protection programme based on personal moulded hearing protection devices for all employees.
The Best Practice capability intervention came into effect in November 2013 after the business improvement project was concluded. During the Blueprint project, the production teams of 90 level, 3 West and 1 West, were trained in the following:
· Understanding productivity and the importance of destress for the mine’s future;
opposed to mediocre performance and compliance;
· Short interval control: operating centres were established across the site – to measure productivity metrics and crew targets. The operating centres are used for daily meetings to ensure targets are understood and issues addressed. This approach was also
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Total All-in cost – Includes sustaining and group costs, excluding income tax, M&A activity, working capital, impairments (other than inventory impairments), financing costs, one-time severance charges and items to normalise earnings.
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Administration and corporate information
network extras, lines are open 8.30am – 5pm Mon-Fri] or [from overseas] +44 20 8639 3399
Fax:+44 20 8658 3430 e-mail:[email protected]
Sponsor: J.P. Morgan Equities South Africa (Pty) Ltd
GOLD FIELDS LIMITED
Name: Nicholas J. Holland Title: Chief Executive Officer
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