South Deep draining Gold Fields performance

by Trust Matsilele 0

During the September quarter, Gold Fields generated 63 million US dollars of cash flow.

(READ MORE: Gold Fields on track with production guidance)

“This brings the total cash flow from operating activities for the year to date, after taking account of net capital expenditure, environmental payments, debt service costs and non-recurring items, to 182 million US dollars,” the group said in a statement.

The company also reported attributable gold equivalent production having increased by two per cent to 559,000 ounces in the September quarter.

[DATA GFI:Gold Fields Limited] achieved all-in sustaining costs (AISC) of US$1,074/oz and all-in costs (AIC) of US$1,096/oz.

The group performance was hampered by its South Deep project.

“If the South Deep project, which is not yet at commercial levels of production, is excluded from the September quarter results, then the Group’s AIC was US$1,025/oz, which demonstrates the robustness of the portfolio and positions Gold Fields in the lowest quartile on an AIC basis.”

Gold production at South Deep in South Africa, decreased by 18 per cent from 1,591 kilograms (51,100 ounces) to 1,298 kilograms (41,700 ounces).

(READ MOREGold Fields to embrace mechanised mining in S.Africa)

The group attributed the decrease to a fatal accident, continuation of ground support remediation which significantly reduced production in large parts of the mine as well as a five day training initiative as part of the roster change over.

“Group Operating profit for the decreased by eight per cent from 311 million US dollars in the June quarter to 285 million US dollars in the September quarter due to the decrease in revenue, partially offset by the lower net operating costs,” added the company.

The company reported its amortisation as having decreased by 14 per cent from 175 million US dollars in the June quarter to 151 million US dollars in the September quarter.

“This was mainly at the Australian operations due to a change in estimate in the depreciation calculation,” said Gold Fields.