Trading statement for FY 2018
Gold Fields Limited
Incorporated in the Republic of South Africa)
Registration Number 1968/004880/06)
JSE, NYSE, DIFX Share Code: GFI
"Gold Fields" or “the Company”)
Trading statement for FY 2018
Johannesburg, 6 February 2019: Gold Fields Limited (Gold Fields)
(JSE, NYSE: GFI) advises that headline earnings per share for
the 12 months ended 31 December 2018 (FY 2018) is expected to
range from US$0.05-0.09 per share, 65-81% (US$0.17-0.21 per
share) lower than the headline earnings of US$0.26 per share
reported for the 12 months ended 31 December 2017 (FY 2017).
Basic loss per share for FY 2018 is expected to range from
US$0.40-0.44 per share, 1900-2100% (US$0.38-0.42 per share)
higher than the basic loss of US$0.02 per share reported for FY
Normalised earnings per share for FY 2018 is expected to range
from US$0.01-0.05 per share, 74-95% (US$0.14-0.18 per share)
lower than the normalised earnings of US$0.19 per share reported
for FY 2017.
The basic loss for FY 2018 was higher than FY 2017 mainly due to
lower revenue and higher non-recurring costs, partially offset
by lower cost of sales.
Revenue in FY 2018 was lower than in FY 2017 primarily due to
lower gold sold at South Deep as a result of the restructuring
and industrial action in Q4 2018, as well as the sale of Darlot
in 2017. The rest of the operations within the portfolio
exceeded guidance for FY 2018.
Cost of sales in FY 2018 was lower than in FY 2017 mainly due to
lower amortisation primarily at Cerro Corona and South Deep.
Non-recurring costs in FY 2018 were higher than in FY 2017
mainly due to:
Higher impairment charge at South Deep as reported in H1 2018.
There was no additional impairment at year-end;
Higher retrenchment costs in FY 2018 compared to FY 2017, mainly
at Tarkwa and South Deep;
Higher loss on sale of inventory and assets in FY 2018 compared
to FY 2017, mainly at Tarkwa due to the conversion to contractor
mining in FY 2018.
This was partially offset by:
A tax credit as a result of the South Deep Tax Dispute
Settlement in FY 2018;
An accounting credit as a result of the acquisition of Asanko in
For Q4 2018, attributable gold equivalent production is expected
to be 509koz (Q3 2018: 533koz), with all-in sustaining costs
(AISC) of US$1,016/oz (Q3 2018: US$977/oz) and all-in costs
(AIC) of US$1,213/oz (Q3 2018: US$1,140/oz).
Attributable gold equivalent production for 2018 is expected to
be 2.04Moz (FY17: 2.16Moz), exceeding revised guidance (provided
in November 2018) of 2.00Moz. Excluding Asanko, attributable
production for 2018 was 96% of original guidance (provided in
February 2018), almost exclusively due to the impact of the
lower production at South Deep, a significant proportion of
which is attributable to the strike. AISC and AIC are expected
to be US$981/oz (FY17: US$955/oz) and US$1,173/oz (FY17:
US$1,088/oz), respectively, both below the lower end of the
guidance range provided in February 2018 – AISC: US$990-1,010/oz
and AIC: US$1,190-1,210/oz.
The financial information on which this trading statement is
based has not been reviewed, and reported on, by the Company’s
Gold Fields will release FY 2018 financial results on Friday, 15
Tel: +27 11 562-9775
Mobile: +27 82 312 8692
Email : Avishkar.Nagaser@goldfields.com
Tel: +27 11 562 9849
Mobile: +27 72 493 5170
Tel: +27 11 562-9763
Mobile: +27 83 260 9279
Email : Sven.Lunsche@goldfields.com
Notes to editors
About Gold Fields
Gold Fields Limited is a globally diversified gold producer with
seven operating mines in Australia, Ghana, Peru and South
Africa, and a total attributable annual gold-equivalent
production of approximately 2.2 million ounces. It has
attributable gold Mineral Reserves of around 49 million ounces
and gold Mineral Resources of around 104 million ounces.
Attributable copper Mineral Reserves total 764 million pounds
and Mineral Resources 4,881 million pounds. Gold Fields has a
primary listing on the Johannesburg Stock Exchange (JSE)
Limited, with secondary listings on the New York Stock Exchange
(NYSE) and the Swiss Exchange (SIX).
Sponsor: J.P. Morgan Equities South Africa (Pty) Ltd
Date: 06/02/2019 02:33:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Email this JSE Sens Item to a Friend.