[miningmx.com] — GOLD Fields’ operations in West Africa to some extent made up for production losses elsewhere in the first quarter of the 2012 financial year, with the group reporting a marginally weaker operational performance for the period under review.
The group’s margins did take a hit though, with the operating profit and net profitability both down by 21%
As per guidance provided in April, Gold Field’s total gold output during the seasonally less-productive March-quarter amounted to 827,000oz, down 6% on the December-quarter’s 883,000oz but less than a 1% decrease on the previous comparative period’s 830,000oz.
Production at the group’s South African operations were down 11% on December, but this was to some extent countered by a 5% hike in contributions from West Africa. Gold ounces produced in South America and Australia were down 4% and 9% respectively.
For now, the group is sticking to its 3.5 million ounce output guidance for 2012.
Costs increased significantly though, with net operating costs up from R5.34bn for the December-quarter to R5.77bn by end-March. Unit costs were up 13% from $767/oz to $870/oz.
The South African operations recorded the biggest quarterly cash cost hikes of 15% (to $1,057/oz).
“This increase was due to annual salary increases for senior officials, additional rock breaking employees signed on.and increase in overtime worked during the Christmas break related largely to infrastructure maintenance plus additional shifts worked during the quarter,’ read company notes.
Gold Fields received a similar price for its gold in the March-period of $1,679/oz than what was the case in the previous quarter. However, revenue decreased by 9% to R11.2bn on the back of the lower production figures.
Overall operating profit and net profitability were both down 21% to R5.4bn and R2.1bn respectively.
Gold Fields also reported steady progress at all of its growth project, the most significant development being the $100m payment made in March to exercise an option to acquire a 40% interest in the Far Southeast project in the Philippines.
“The decision to exercise the option earlier than originally planned was linked to positive results from our due diligence and scoping studies at Far Southeast,’ said the group.
