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Gold Fields to diversify out of SA
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Posted Fri, 01 Oct 2004
World number four gold miner Gold Fields continues to see it as an imperative that the group expand and diversify its gold mining interest outside South Africa, chair Chris Thompson wrote in the group's 2004 financial report released on Thursday.
"The gold price outlook remains firm, underscored by declining gold production, high international tensions, the almost certain assumption of inflation in the US and strongly rising investment demand for gold," Thompson said.
Gold Fields' 2004 financial year was difficult, especially in terms of transformation mandates imposed by the South African government, but the principal problem was the strengthening of the rand, he added.
Attributable Mineral Resources (exclusive of the Essakan Project in Burkina Faso and the Cerro Corona Project in Peru but inclusive of the Arctic Platinum Project in Finland) have decreased by 4.7 million ounces, or 2.4 percent, to 190.6 million ounces for the year under review.
Attributable Reserves (exclusive of the Essakan and Cerro Corona projects), net of annual attributable depletion of 4.5 million ounces, have fallen by six million ounces, or 7.3 percent, to 75.6 million ounces.
Thompson also announced that Kofi Ansah, formerly head of the Ghanaian Minerals Commission would joint Gold Fields' board.
"He brings a wealth of needed Ghanaian perspective to the board," Thompson added.
In its 2005 financial year, Gold Fields is looking to produce 4.42 million troy ounces of gold, with 2.96 million oz coming from South Africa and 1.46 million oz from the group's international operations, Gold Fields CEO Ian Cockerill said in the annual report.
Gold Fields' total capital expenditure during its 2005 financial year are expected to total R2.155-billion, with a 38:62 split between the South African and international operations.
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