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Gold Fields Limited  TICKER: JSE/NYSE-GFI DESCRIPTION: Gold Fields Limited is one of the world’s largest gold mining companies with operations in South Africa, Australia, and Ghana. The Company’s unhedged position makes it a leading play for the gold and precious metals investor. View interview with CEO Nick Holland on Cantos. (8/1/08) Q4F2008 Results Presentation transcript (8/1/08) WEBSITE: http://www.goldfields.co.za/ Ghana: Increase Funds to Mining Communities BMO Capital Mkts Presentation 3-08 The information below is based on the most recent information we have received from analysts and the companies participating in The Gold Report. We encourage you to visit the company's web site for updates. And some of these have come down so much that they are now low-P/E stocks, which is unheard of in mining, because most major mining companies are valued on assets in the ground and the new gold that they find. They’re very rarely valued on an earnings basis. Some of them, like Freeport, AngloGold and Goldfields, have fallen into the value stock area with P/E ratios of around 7 to 12. Companies like that are deeply oversold. You have to have a long-term perspective and wait until these sell-offs start to go to the upside. Watch for this rise, combined with the normal seasonal pattern such as in August, and you can buy these stocks at once-a-decade prices or even once-in-a-lifetime prices. You can do very well over the next 16 to 30 months. That’s what I give the bull market in gold and other metals —16 to 30 months more before it tops out." (8/15/08) - Mining InsightsDarrell Brookstein, The Gold Report
"Obviously you've got to have those things to have cash flow, but just having those things is not going to add value in the minds of the investors. So we're going to be measuring ourselves on all-in costs because this industry hasn't been making much cash flow. And you'll see this time and again when we report. That will be the parameter." So Gold Fields management has decided to buck the industry trend and tell the company's owners the total cost of mining an ounce of gold, from operations (labour, power and so on) to capital investment (the cost of buying long-life equipment, extending a mine shaft, etc.). Is the difference a big deal? Uh, yeah. Cash costs in Gold Fields' latest quarter - that's the traditional cost, as measured by industry standards - were $502 (U.S.) an ounce, down slightly from the prior quarter. But total cash costs (what the company calls notional cash expenditure) were $869 an ounce. Says Mr. Holland, adding eye-opening perspective: "And you look at the gold price and say, 'That's $895 per ounce.' And you say, 'Hang on a minute, guys, you're not making any cash.' Correct, we're not making any cash. That's because we're reinvesting all of the cash flow into the growth projects." (8/6/08) - globeandmail.com
Gold Fields CEO Nick Holland said today the company was working towards production of 1m ounces from South America, West Africa and Australasia in the medium term, while it would shrink the Johannesburg corporate office from about 140 employees to 60. The downsizing would be done through re-deployment and Holland said South Africa would eventually become only a region for Gold Fields, though still an important one. Interestingly, Goodlace said that addressing risk was a balancing act; a country such as Australia that was good in terms of geopolitics posed some geological risk since greenstone-belt mining was riskier compared to the mining of Witwatersrand-type ore bodies." (8/1/08) - Mineweb.com
Roelofse said Gold Fields and Harmony were both expected to report higher earnings per share for the quarter, with Gold Fields benefiting from higher volumes and improved unit costs.. Gold Fields said in a recent update its June quarter production in SA would be above the original forecast, up 6,6%, because of better quality mining at Beatrix. Its international production would be flat, while costs would be steady. New production from Cerro Corona and expansions in Australia and Ghana would start to contribute in the September quarter." (7/29/08) - businessday.com
Senior vice president: North American investor relations, Willie Jacobsz, told Mining Weekly Online that the company “would like to be a five-million ounce producer three years on”. This significant growth in production would come from Ghana, South America, and Australia, he said. The group produced 4,02-million ounces in the 2007 financial year, but said in May that it could lose up to one-fifth of its South African output after State-owned Eskom failed to generate enough power in January, leading to a five-day shut down in the mining industry." (7/14/08) - miningweekly.com
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