Gold Fields trims costs

Vancouver — Cost-reduction programs and increased production helped Gold Fields (GFI-N) boost operating profits by 40% during its latest quarter ended Dec. 31, 2004.

The Johannesburg-based gold company produced 1.04 million oz. gold during the last three months of 2004, about 4% higher than a year earlier. Cash costs were down by more than 2% to US$330 per oz. over the same periods.

A star performer was the Tarkwa mine in Ghana, where output increased 34% during the quarter, reflecting the start of in-house mining and a new carbon-in-leach plant brought on line over the past two quarters.

Gold Fields posted a 40% increase in its operating profit, to US$103 million from US$72 million in the previous quarter and US$80 million in the last three months of 2003.

The boost in profits was attributed mainly to cost-reduction improvements carried out at South African operations over the past year, as well as to the excellent performance of the Tarkwa mine.