Gold Fields posts solid quarter (November 18, 2002)

Vancouver — Despite witnessing a quarterly shortfall, South Africa’s second-largest gold miner saw year-over-year profits more than triple in the third quarter.

Gold Fields (GFI-N) posted a profit of US$71 million (or US15 per share), compared with US$80 million (US17 per share) in the corresponding period of 2001.

“Gold Fields delivered another robust performance, with all operations delivering to expectation and keeping a tight lid on costs,” says Gold Fields Chief Executive officer Ian Cockerill.

The rise in profits reflects increased production and higher gold prices — this despite a stronger rand, foreign currency losses and modest drops in production at the Driefontein and Beatrix operations.

Gold production totalled 1.1 million oz. for the quarter, down from 1.2 million oz. a year earlier. Production at Gold Fields’ flagship mine dropped 7% to 330,000 oz., while its Beatrix operation in the Free State reported a 9% drop to 157,000 oz. Despite these declines, year-over-year production was up 28% overall.

Revenue for the quarter jumped 4% to US$382 million, owing to an increase in gold sold. Gold Fields sold 1.2 million oz. gold, 48,000 oz. more than it had in the previous quarter.

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