Gold Fields expresses that despite the existing fall in the gold price and the preceding challenges it encouraged‚ the company was still positive about the future of the valuable yellow metal. The gold manufacturer furthermore reiterated the potential benefits of its portfolio review. The portfolio review (which included the unbundling of Sibanye Gold earlier this year ) was a landmark development and had allowed both businesses to refocus and commit to their management efforts‚ resources and strategies on their unique opportunities.
Here some statistics that represent growth for Gold Fields:
- The corporation believes that gold remains a very applicable commodity. With the changes that they have made to their strategy‚ their operating model and their structures‚ they are now well positioned to benefit from the upturn when it yet again arrives.
- Gold Fields reported a 3% increase in revenue in rand terms from R6.926m to R7.159m for its South African operations in the March 2012 quarter.
- Gold production at South Deep increased from 62,700 ounces (1 950 kilograms) to 63,000 ounces (1 959kg).
- Operating costs increased by 3%, from R658m in the December quarter, to R679m in the March quarter.
- Total cash cost increased from R333 282 a kilogram to R339 969 a kg because of the marginal increase in production cost.
- Operating profit decreased from R281m in the December quarter to R243m in the March quarter, as a result of lower revenue due to a lower gold price received and an increase in working costs.
- Capital expenditure decreased from R654m in the December quarter, to R551m in the March quarter.
- Group attributable equivalent gold production decreased by four percent from 498,000 ounces for the March 2012 quarter, to 477,000 ounces for the March 2013 quarter.
- It was the first quarter in which the operations of Gold Fields and unbundled entity Sibanye Gold – which consists of Beatrix and KDC – were managed as separate entities.