Gold Fields Q3 2014 Results I 12
mined was due to mining in lower grade areas in line with the mining sequence.
Tonnes processed increased marginally from 359,000 tonnes in the June quarter to 360,000 tonnes in the September quarter. The yield increased from 7.32 grams per tonne to 7.41 grams per tonne mainly due to a drawdown of 1,800 ounces of gold-in-circuit in the September quarter.
Net operating costs, including gold-in-process movements, increased from A$48 million (US$45 million) in the June quarter to A$50 million (US$46 million) in the September quarter mainly due to the drawdown of gold-in-circuit.
Operating profit was similar at A$67 million (US$62 million).
Capital expenditure increased from A$11 million (US$10 million) in the June quarter to A$19 million (US$18 million) in the September quarter. Capital expenditure was incurred mainly on exploration, capital development and improvements to the processing plant.
All-in sustaining costs and total all-in cost per ounce increased from A$742 per ounce (US$692 per ounce) in the June quarter to A$852 per ounce (US$792 per ounce) in the September quarter mainly due to an increase in capital expenditure.
Quarter ended 30 September 2014 compared with quarter ended 30 September 2013
Group attributable equivalent gold production, increased by 13 per cent from 496,000 ounces for the September 2013 quarter to 559,000 ounces for the September 2014 quarter, mainly due to the inclusion of production from the Yilgarn South assets in the September 2014 quarter.
At the South Africa region, gold production at South Deep, decreased by 49 per cent from 2,547 kilograms (81,900 ounces) in the September 2013 quarter to 1,298 kilograms (41,700 ounces) in the September 2014 quarter, mainly due to a fatal accident, continued ground support remediation as announced on 29 May 2014 and safety stoppages in the September 2014 quarter.
At the West Africa region, total managed gold production decreased by 7 per cent from 195,500 ounces in the September 2013 quarter to 182,000 ounces in the September 2014 quarter. At Tarkwa, gold production decreased by 15 per cent from 162,900 ounces to 139,200 ounces mainly due to the cessation of crushing and stacking operations at the heap leach facilities. At Damang, gold production increased by 31 per cent from 32,600 ounces to 42,800 ounces mainly due to the implementation of the recovery plan earlier in the year and higher head grade mined in the September 2014 quarter.
At the South America region, gold equivalent production at Cerro Corona decreased by 7 per cent from 90,700 ounces in the September 2013 quarter to 84,700 ounces in the September 2014 quarter mainly due to lower ore processed and lower gold and copper grades.
At the Australia region, gold production increased by 80 per cent from 149,100 ounces in the September 2013 quarter to 268,800 ounces in the September 2014 quarter mainly due to the acquisition of the Yilgarn South assets. At St Ives, gold
production decreased by 15 per cent from 103,800 ounces to 88,700 ounces, mainly due to the closure of Argo and lower underground head grade. At Agnew/Lawlers, gold production increased by 60 per cent from 45,200 ounces to 72,200 ounces, mainly due to the inclusion of Lawlers. At Darlot and Granny Smith gold production amounted to 22,300 ounces and 85,600 ounces, respectively.
Income statement
Revenue increased by 2 per cent from US$683 million in the September 2013 quarter to US$699 million in the September 2014 quarter due to the higher gold sold, partially offset by the lower gold price received. The average gold price decreased by 4 per cent from US$1,315 per ounce to US$1,265 per ounce. The average Rand/US dollar exchange rate weakened by 7 per cent from R9.98 in the September 2013 quarter to R10.71 in the September 2014 quarter. The average Australian/US dollar exchange rate weakened by 1 per cent from A$1.00 = US$0.92 to A$1.00 = US$0.93.
Net operating costs increased by 4 per cent from US$400 million to US$414 million due to the inclusion of the Yilgarn South assets.
At South Deep in South Africa, net operating costs decreased by 23 per cent from R832 million (US$84 million) in the September 2013 quarter to R637 million (US$59 million) in the September 2014 quarter. This was mainly due to the lower production as well as cost restructuring, partially offset by annual wage increases and normal inflationary increases. All-in sustaining costs of R616,306 per kilogram (US$1,790 per ounce) and total all-in cost of R658,383 per kilogram (US$1,912 per ounce) in the September 2014 quarter compared with R464,500 per kilogram (US$1,446 per ounce) and R513,149 per kilogram (US$1,599 per ounce), respectively, in the September 2013 quarter.
At the West Africa region, net operating costs decreased by 13 per cent from US$166 million in the September 2013 quarter to US$145 million in the September 2014 quarter. All-in sustaining costs and total all-in cost for the region amounted to US$1,131 per ounce in the September 2014 quarter compared with US$1,224 per ounce in the September 2013 quarter. At Tarkwa, net operating costs decreased by 23 per cent from US$126 million to US$97 million. Good cost control as well as lower contractor and consumable stores costs due to the heap leach closure were partially offset by annual wage increases and increased power rates. Net operating costs were also lower due to a US$3 million gold-in-process credit to cost in the September 2014 quarter, compared with a US$10 million drawdown of stockpiles in the September 2013 quarter. All-in sustaining costs and total all-in cost amounted to US$1,096 per ounce in the September 2014 quarter compared with US$1,124 per ounce in the September 2013 quarter. At Damang, net operating costs increased by 15 per cent from US$41 million to US$47 million due to a US$3 million charge to costs in the September 2014 quarter compared with a US$5 million credit to cost in the September 2013 quarter. All-in sustaining costs and total all-in cost amounted to US$1,245 per ounce in the September 2014 quarter compared with US$1,727 per ounce in the September 2013 quarter.
At Cerro Corona in South America, net operating costs decreased by 33 per cent from US$40 million in the September 2013 quarter to US$27 million in the September 2014 quarter. This was mainly due to a US$10 million build-