Vancouver — South Africa’s third biggest gold producer posted a profit of US$93 million in the latest quarter, down from the US$112 million tallied a year earlier.
Gold Fields (GFI-N) benefitted from the sales of investments to the tune of US$34 million in the quarter. Excluding exceptional items, the major earnings came in at US$34 million compared to US$58 million in the last quarter.
The shortfall is atrributed to an 8% rise in the average Rand-US Dollar exchange rate and a US$4 lower realized gold price, to US$349 per oz, during the quarter.
Revenue came in at US$383 million on gold sales rang in at 1.1 million ozs, compared to revenue of US$397 million on sales of 1.13 million oz last quarter. The lower gold sales is primarily a result of lower underground grades at the Kloof operation.
Operating costs came in slightly higher at US$281 million for the quarter, compared to US$256 million. Total cash costs increased to US$255 per oz, up from US$225 per oz, mainly due to the stronger Rand.
Gold production for the June quarter decreased to 1.04 million oz from 1.07 million oz in the last quarter.
Australia was a bright spot, where increased output at the St. Ives operation propelled production 13% higher. Cash costs for the mine rang in at US$221 per oz and grades were maintained at 2.9 grams gold per tonne.
Gold production at Agnew was virtually unchanged at 36,000 oz, at total cash costs of US$286 per oz, slightly higher than the US$272 per oz cost hit last quarter.
Operations in Ghana saw a 3% drop in output. Total cash costs at Tarkwa hit US$213 per oz, compared to US$202 last quarter; and at Damang total cash costs decreased to US$223 from US$248 per oz.
For the fiscal year 2003, gold production increased 5% to 4.33 million oz, from 4.11 million oz posted in 2002. The increase is the result of the major’s acquisition of the Australian and Damang operations.
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