JOHANNESBURG, South Africa, Oct. 10 /CNW/ - Gold Fields Limited (Gold Fields) (NYSE, JSE, DIFX: GFI) today updated its operational guidance for Q1 F2009.

Group attributable production for Q1 F2009 is expected to be approximately 798,000 ounces. This is 2.7% lower than the guidance provided on 1 August 2008, which indicated production of 820,000 ounces. This is due mainly to slower than expected build-up of production at Cerro Corona.

Group cash costs are expected to be in line with previous guidance, at approximately R154,000/kg (US$618/oz). Notional Cash Expenditure (NCE), which includes all operating costs as well as sustaining and project capital, is expected to be approximately 6% better than previous guidance, at R227,000 /kg (US$910/oz).

Nick Holland, Chief Executive Officer of Gold Fields, said: "In line with our previous guidance, production in the September quarter was expected to be impacted by rehabilitation actions at South Deep, Driefontein and Kloof. With all of the rehabilitation work in South Africa as well as the international growth projects scheduled for completion and full build up by the end of December, we remain on track to achieve our short-term target of a run rate of approximately 1 million attributable equivalent ounces of gold during the March quarter next year, at an NCE of approximately US$725/oz at R/US$8.00."

Q1 F2009 gold production for the South African operations is expected to be approximately 492,000 ounces. This is 2% better than previous guidance provided on 1 August 2008. South African cash costs and NCE is expected to be approximately R154,000/kg (US$618/oz) and R213,000/kg (US$857/oz) respectively, compared with previous guidance of R157,000/kg (US$610/oz) and R221,000/kg (US$860/oz) respectively.

-   Driefontein is expected to produce approximately 206,700 ounces of
    gold, which is better than previous guidance. Cash costs and NCE are
    expected to be approximately R130,000/kg (US$522/oz) and R169,000/kg
    (US$680/oz) respectively.
-   Kloof is expected to produce approximately 156,600 ounces of gold,
    which is approximately 25% better than previous guidance. Cash costs
    and NCE are expected to be approximately R155,000/kg (US$623/oz) and
    R211,400/kg (US$850/oz) respectively.
-   Beatrix is expected to produce approximately 101,400 ounces of gold,
    which is approximately 13% below previous guidance. This decline is
    as a result of lower volumes mined and a lower mine call factor which
    resulted in lower yields. Cash costs and NCE are expected to be
    approximately R151,000/kg (US$607/oz) and R206,600/kg (US$830/oz)
    respectively.
-   South Deep is expected to produce approximately 27,300 ounces of
    gold, which is approximately 13% below previous guidance.