JOHANNESBURG - Gold Fields, the world's No.4 gold producer, reported a rise in second-quarter adjusted earnings per share, but expects output for the next three months to drop due to a slower ramp up after Christmas.

Gold Fields said on Thursday adjusted EPS for the quarter to end-December rose to 145c from 89c the previous quarter.

The miner, which has operations in Africa, South America and Australia, said attributable gold production stood at 900,000 ounces, down from 906 000 oz the previous three months, and is expected to drop further in the upcoming quarter.

"In the March 2010 quarter attributable gold production is estimated at 850 000 attributable equivalent ounces, with a decrease in production at the South Africa region due to the slow start-up after the Christmas break," Gold Fields said in a statement, but added production in other regions would rise.

Gold Fields said total cash costs during the quarter were up 5% to $613/oz due to a stronger rand, and are expected to rise to $650/oz in the quarter to end-March, assuming a rand/dollar exchange rate of R7,45.

South African gold producers sell their gold in dollars and pay costs in rand. Spot gold traded at $1 107,10/oz at 06:24 GMT on Thursday.

The company declared an interim dividend of 50c per share.

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