Denver — Cost-cutting measures and the weakening of the South African rand helped
The company earned US$36 million (or 8 per share) during the 3-month period, and US$66 million (15 per share) during the last half of 2000. Gold production was off 3% to 941,000 oz. in the quarter, though it reached 1.9 million oz. in the last six months.
Cash costs were unchanged at R46,761 per kg, though they declined 7% to US$191 per oz. as a result of the depreciating rand. Total production costs were down to US$211 per oz.
In Ghana, the company’s 71%-held Tarkwa operation performed strongly in the fourth quarter. Gold output hit 103,000 oz., on par with a year ago, though the number of ttons crushed increased, reflecting the startup, in December, of the newly acquired Teberebie mine. Cash operating costs fell to US$134 per oz. in the fourth quarter, down from US$165 in the third quarter.
The Beatrix operation, in South Africa’s Free State, also performed robustly, producing 129,300 oz. at US$167 per oz.
At the giant Driefontein complex, production continued to be hurt by seismic events in September, which killed two workers. The company had to shift operations away from the higher-grade No. 4 shaft, resulting in falling headgrades. In all, gold output was 340,500 oz., with a loss of 17,600 oz.
This year, the company expects to complete a feasibility study for a new metallurgical process for surface material. During the quarter, the surface operation contributed 38,000 oz. at US$71 per oz.
At the nearby Kloof operation, production was off 13,300 oz., owing to September’s seismic activity, which killed four. Output still reached 324,000 oz. at cash costs of US$196 per oz. Gold Fields succeeded in reducing operating costs at the Oryx mine, though results for it and the St. Helena mine continued to disappoint.
The company remains focused on reducing costs and improving earnings for 2001. At the end of last year, it had cash of US$85 million.
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