COMPANIES
Gold Fields earnings 'solid'
Posted Fri, 04 Aug 2006
Gold Fields on Thursday announced June 2006 quarter net earnings of R604-million compared with R483-million in the March 2006 quarter, and a negative R27-million for the June quarter of 2005. In US dollar terms net earnings for the June 2006 quarter were $95-million compared with $76-million in the March 2006 quarter and a negative $5-million for the June quarter of 2005. CEO Ian Cockerill said: "Gold Fields delivered a solid set of results broadly in line with guidance provided at the end of the previous quarter.
"We are particularly pleased that we have been able, through effective cost control, to see a significant part of the higher gold price flow through to the bottom line. "Operating profit this quarter increased 40 percent with the group margin increasing from 32 percent to 38 percent and the South African margin increasing from 22 percent to 34 percent." South African operations, led by a resurgent Kloof, delivered the anticipated improvements, while the
international operations declined from an unsustainably high base in the March quarter. Total cash costs were well controlled despite the high inflationary environment around the globe. "During the September quarter the focus will remain on the mining of quality volumes and tight cost control to mitigate the strong inflationary pressures and to ensure that shareholders reap the benefit of the stronger gold price."
Sapa
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