Gold Fields in black

Denver — Despite a poor exchange rate for the rand, Gold Fields remained profitable in the first quarter of its 2001 fiscal year.

Gold production grew 6% during the 3-month period ended Sept. 30, to 973,000 oz., while operating profits improved to R428 million (US$61.2 million) — this, despite a 9% jump in labour costs.

Net earnings amounted to R201 million (US$28.7 million, or 6 per share), including R8 million in exceptional items and R43 million in tax provisions. By comparision, the first quarter of fiscal 2000 saw Gold Fields incur a loss of R126 million (US$20.9 million, or 3 per share).

Production at the Tarkwa mine, in which Gold Fields holds a 71% interest, increased by 30% (in relation to the previous quarter) to 105,000 oz. Grade-control improvements at the Ghanaian operation pushed grades to 1.4 grams gold per tonne, compared with 1.1 grams in the June quarter. Cash operating costs were US$165 per oz.

At the Driefontein complex in South Africa, production grew 9% to 358,000 oz. Surface operations contributed 41,000 oz. at a cost of US$70 per oz. Overall cash costs were US$192 per oz.

In the Free State, the Beatrix mine contributed 127,000 oz. at US$183 per oz. However, the Oryx and St. Helena mines reported operating losses.

In September, a seismic event near the main shaft at the Kloof mine, in South Africa, resulted in the deaths of four employees. The event occurred 2.7 km below the surface and measured 2.9 on the Richter scale. A week later, another seismic event, this time at the Driefontein mine, resulted in the deaths of two more miners.