COMPANIES
Gold Fields sells R1.2bn in shares
Posted Fri, 26 Jan 2007
Mining company Gold Fields Ltd. announced Thursday that it sold $1.2-billion worth of new shares to repay debt and that fourth-quarter profit surged after it boosted production.
The company said it will use the proceeds of its share sale to pay off the debt incurred by its acquisition of Barrick Gold Corp's 50 percent stake in the South Deep mine and its rights under a joint venture agreement with Western Areas Ltd.
Gold Fields completed the $1.5-billion purchase for the South Deep stake from Toronto-based Barrick last year, and will control the other half through its $1-billion purchase of the remaining shares of Western Areas.
Separately, the company said net income for the three months through 31 December 31 rose to R767-million ($767-million) compared with R284-million in the fourth quarter of 2005.
Gold production increased by 10 000 ounces to 1.015 million ounces.
"Overall the group's performance for the December quarter was steady with production
being largely as expected," said chief executive Ian Cockerill.
Analysts have described the South Deep mine as one of the crown jewels of South Africa's gold reserves. The mine is one of the deepest in the world and has estimated reserves of 29.3 million ounces and the projected life of the mine is 70 years. Last year, South Deep produced 460 000 ounces of gold.
Sapa
| 
