Gold Fields Limited (GFI) Thursday reported a sharp increase in profit for the first quarter, as revenues increased 30% year-over-year on higher average gold price.
Net profit attributable to owners of the parent was US$128.7 million or 18 cents per share, much higher than US$5.2 million or 1 cent per share in the prior year.
In the latest quarter, the company had an exceptional gain of US$85 million, mainly as a result of a US$57 million profit on the sale of the company's stake in Sino Gold, a US$37 million profit on the sale of Eldorado shares, partially offset by a US$7 million impairment of sundry offshore exploration investments. In the prior-year quarter, the company recorded total exceptional gain of US$14.8 million.
Earnings, excluding exceptional items, gains and losses on foreign exchange, financial instruments and losses of associates after taxation surged to US$80 million or 11 cents per share from US$16 million or 2 cents per share in the comparable period.
Quarterly revenues increased to US$948.3 million from US$739.5 million in the prior year. Gold Fields' attributable gold production increased 14% to 906 thousand ounces from 798 thousand ounces last year.
At the South African operations, gold production increased to 527 thousand ounces from 492 thousand ounces a year ago. At the West African operations, total managed gold production increased to 227 thousand ounces from 200 thousand ounces in the prior-year quarter .
In South America, gold equivalent production at Cerro Corona increased to 88 thousand ounces from 12 thousand ounces in the comparable period, in line with the build-up to full production.
At the Australasian operations, gold production declined 5% to 146 thousand ounces from 153 thousand ounces last year.
Average gold price increased to US$959 per ounce, up 11% from US$874 per ounce in the previous year. U.S. dollar weakened by 1% to US$1 = R7.82 from US$1 = R7.74, while the rand/Australian dollar strengthened by 7% from A$1 = R6.97 to R6.49.
Looking ahead, the company said it expects to increase production to about 925 thousand ounces in the next quarter, with increases at Driefontein and Kloof, where production was adversely affected by safety stoppages in the first quarter and an increase at Tarkwa as the mine reaches steady state.
GFI closed Thursday's regular trading at $12.69 per share on the New York Stock Exchange.
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