Reflecting a weakened South African rand and a month’s production from the recently acquired St Ives and Agnew mines in Western Australia,
Earnings for the South African major translate into US15 per share. By comparison, earnings for the previous 3-month period totalled US$24 million (or US5 per share).
Revenue between the two quarters rose to US$287 million from US$250 million, and attributable gold production climbed 11% to 984,000 oz. Cash costs fell to US$169 from US$200 per oz., reflecting increased production at the Beatrix and Kloof operations in South Africa, the weakening of the rand, and the inclusion of production from the Australian operations at a cash cost of US$161 per oz.
The South African operations resulted in an increase of 33,000 oz., or 3% of the total production increase, owing to an increase in the number of tonnes milled and an improvement in yield. Beatrix chipped in 22,000 oz. and Kloof, 11,000 oz. The new Australian operations added 68,000 oz. during December alone.
The company averaged US$281.61 per oz. for its quarterly production. The period’s average gold price was US$279 per oz., up US$5 per oz. from the previous 3-month period. Cash flow from operations soared to US$126 million from US$45 million, resulting in a cash balance, at the end of the recent quarter, of US$74 million.
At the end of 2001, Gold Fields’ debt stood at US$165 million, relating to the acquisition of the Agnew and St Ives operations from
Looking ahead, the company has appointed Steve Banning to the position of managing director of Australia to head up exploration at both St Ives and Agnew over the next 18 months.
The company anticipates a full quarter of production from the Australian operations and two months’ worth from the new Damang gold mine in Ghana. Damang hosts reserves of 15.3 million tonnes averaging 2.36 grams gold per tonne, and there are satellite resources and reserves elsewhere on the property. During the financial year ended June 31, 2001, the mine processed 4.5 million tonnes averaging 2.42 grams gold per tonne to produce 322,046 oz. gold. Total cash costs were US$208 per oz.
Goldfields acquired a 71% stake of Ranger Minerals’ 90% interest in Abosso Goldfields, which held 100% of the Damang gold mine.
Says Chris Thompson, Gold Fields’ chief executive officer: “For the calendar year ahead, we will continue to look for acquisition opportunities. We hope that after the Normandy takeover battle, pricing expectations have not risen to prohibitive levels. Real value creation remains the key to our strategy.”
The company has declared an interim dividend of R0.90 per share, payable to shareholders of record on Feb. 15, 2002.
Be the first to comment on "Gold Fields’ earnings nearly triple (February 11, 2002)"