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Thursday, 26th October 2006 (3289 views)

CEO at Gold Fields Ian Cockerill has warned of increasing "cost pressures" affecting the gold mining company.

Gold Fields' cash costs rose to R79,862 (£5,669) per kilogram, representing a rise of 18.8 per cent during the third quarter when compared with the corresponding period last year.

The increase in costs at the company's gold properties at Tarkwa and Damang in Ghana were blamed on power disruptions, alongside the cost of fleet management and administration.

Mr Cockerill stated: "Cost pressures continue to remain a challenge in the current commodity cycle and we will have to be vigilant to ensure that current gold prices, as far as possible, report to the bottom line."

The cost of operations affected all of the mines owned by Gold Fields, in South Africa, Venezuela and Australia as well as Ghana.

CFO at Gold Fields Nick Holland has expressed the company's desire to curb costs and integrated supply chain initiatives have resulted in savings of R27 million (£1.9 million).

Gold Fields was established in 1998 following the amalgamation of Gold Fields of South Africa and Gencor, and it is currently the world's fourth largest gold miner.

 

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