South Africa’s second-biggest gold-mining company Gold Fields on Thursday announced lower net earnings of R1 606-million for the June quarter compared with R2 082-million in the March quarter.
The quarter was, however, up on the R1 267-million net earnings of the corresponding 2011 quarter.
Net June-quarter earnings of $198-million were well down on the $268-million for the three months to March 31, but up on the $186-million of the previous year.
The company produced 862 000 oz at a total cash cost of $851/oz and an all-in cost of $1 308/oz.
The operating margin was 47% and all-in margin of 18%.
Gold Fields CEO Nick Holland reported “good progress” on the South Deep project and stabilized production from the Kloof Driefontein Complex (KDC).
The company declared an interim dividend of 160c a share, payable on September 5.
Holland said that the company’s safety drive experienced a serious setback when five miners lost their lives in an underground fire at KDC West’s Ya Rona shaft.
The cause of the fire, which started in an old worked-out part of the shaft that had been closed for many years, remained unknown.
The balance of the September quarter would be focused on flushing out noxious gases and ensuring a safe and healthy environment to recommence operations in the last quarter of the calendar year.
Loss of production as a consequence of the fire was expected to be 50 000 oz or 1 600 kg.
With the KDC tramming fatality, the total number of fatalities in the quarter rose to six.
South Deep had been fatality-free for the past 18 months while Beatrix recorded a fatality-free quarter.
Tarkwa and Cerro Corona continued to report zero lost-time injuries and the overall lost-day injury frequency rate for the group improved from 5.21 to 4.51, but the days-lost frequency rate regressed to 234 from 220.
Source: Creamer Media Reporter