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Wednesday, 20th December 2006 (5377 views)

Gold Fields has announced its intention to extract some 400,000 ounces of gold from its South African South Deep property in 2007.

Nick Holland, chief financial officer at Gold Fields, said that the mining company has seen an underperformance at the South Deep mine, which is why it has only produced less than half of the 400,000 ounces it plans on reaching.

In other news, Golf Fields also declared that it will increase the length of time for its offer to Western Areas minorities until January 26th.

Mining MX report Mr Holland as saying: "At R140,000 (£10,200) per kg, we're highly cash generative. I'm not unduly concerned and it isn't one of those things keeping me awake at night. But I wouldn't want to take on more debt."

During 2005, South Deep produced 460,000 ounces of gold and Mr Holland said that the eventual target for the company is to reach 800,000 ounces.

Golf Fields acquired the South Deep property from Barrick Gold this year and production was hit at the site due to a skip falling down a shaft in May.

 

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