LONDON (AFX) - Gold Fields Ltd said its third-quarter net earnings fell 23 pct from the year-earlier quarter, after a stronger rand offset higher dollar prices received for its gold, and said that the fourth quarter would also be challenging.
Net earnings fell to 0.805 bln rand from 1.049 bln rand for the March 2002 quarter despite the sales of some of its non-core holdings in Eldorado Gold Corp and Glamis Gold Ltd and net gains on financial instruments and foreign debt related to its Australian operations. Pretax profit before exceptional items fell to 1.037 bln rand from 1.178 bln rand in the previous quarter.
Third-quarter gold production was little changed from the previous quarter despite the sale of St Helena during the previous quarter and the longer Christmas break. Gold output dipped to 1.07 mln ounces from 1.09 mln ounces in the previous quarter.
"The March quarter is typically a difficult quarter to maintain production levels and costs due to the extended Christmas break, said chief executive Ian Cockerill.
"The June quarter is posing even greater challenges as this quarter is characterized by even more public holidays, unevenly spread throughout the period. Combined with an ever-strengthening South African rand that has continued into the current quarter, shareholders are advised that this is expected to have a much more pronounced impact on our next set of quarterly results," said Cockerill.
During the third quarter, the rand/usd exchange rate strengthened by 14 pct to 8.38 this quarter from 9.77 in December 2002. The impact on earnings was partly offset by the higher dollar gold price received of 353 usd an ounce, compared with 321 usd per ounce last quarter.
Operating profit fell 15 pct to 1.13 bln rand during the quarter, affected by the strong South African rand which resulted in lower received rand prices for the metal. Operating profit remained flat in US dollar terms at 135 mln usd.
The company also said it plans to invest 160 mln usd in its Tarkwa Mine in Ghana, West Africa. This investment will increase annual throughput to 19 mln tons of ore a year and gold production by about 200,000 ounces per year, it said.
O Clubeinvest.com informa que nenhuma da informação
aqui facultada deverá ser entendida como conselho ou recomendação
de qualquer tipo de transacção ou investimento.
