Gold Fields produces less, grinds out a two percent drop in gold costs

Gold Fields (NYSE:GFI) true cost of producing an ounce of gold dropped 2% according to the company's Q1 that it released on Friday.

The true cost of producing a ounce of gold fell from US$1,355 per ounce in December to US$1,291 per ounce this quarter.

The company's stock was largely unchanged on Friday at $6.80. The 52-week high is $14.04 and the low is $6.23.

Gold production was down 11% from 534,000 ounces in the December quarter to 477,000 ounces in the March quarter. The company said that the decline was anticipated.

The Tarkwa mine in West Africa and the Cerro Corona mine in Latin America both produced less due to declining grades.

Company is concentrating on cash. It said exploration and project activities were promising. that that the focus would be projects that are ". . . smaller, higher grade, and less capital intensive."

Greenfields exploration expenditure has been cut from approximately US$130 million spent in 2012 to US$80 million planned for 2013.

Gold Fields touted its safety drive and noted that there were no fatalities at any operations during this quarter.