Dallas, Texas 03/04/2014 (FINANCIALSTRENDS) – Gold Fields Limited (ADR)(NYSE:GFI) the South African gold exploration and mining company has disclosed fourth quarter results of 2013.
Management while discussing the financial results of the year indicated that there is a shift in strategy for the quarter under discussion. First of all the move was to keep away from the ounces of production and remain focused on margins and cash flows. The need is to process and engineer the structural shift, where the cost and production base of the group was sustainable. In effect the management announced results which were related not only to the past quarter but essentially the past one year and six months.
Gold Fields Limited (ADR)(NYSE:GFI) has declared that the production of gold is now 21% of the previous quarter. The number of ounces is 598,000 ounces. The first contribution came from the Yilgarn South Assets in Australia. This section helped the company achieve units as high as 114,000 ounces for the quarter. Additionally, the normalized earnings for the quarter are in the region of $14 million as compared to the $12 million which was during the quarter of September. Alternatively, the period of $127 million for the present quarter is at a much higher gold price.
Gold Fields Limited (ADR)(NYSE:GFI) has announced that in late December, for the quarter the company saw a record increase in costs- from $3 million which was in September to $38 million which was in December quarter. The positive factor here is that though the gold prices fell by over $1265 ounces, the average gold in December was 4% lower, in comparison to what it was in September.
Gold Fields Limited (ADR)(NYSE:GFI) has therefore indicated that the restructuring is along the lines of the business where the overall gold pricing has improved and has been a significant improvement.
Gold Fields Limited (ADR)(NYSE:GFI) has since declared a full year dividend of ZAR at 0.22 which was within the policy of 25% to 35% of the earnings.