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Gold Fields expects lower costs - IOL

Thursday, 19 November 2015

Johannesburg - Gold Fields, the South African miner with operations from Peru to Australia, said its costs this year will probably be lower than previously forecast as it stemmed cash outflows at its South Deep mine and posted higher third-quarter Gold Fields expects lower costs Johannesburg - Gold Fields, the South African miner with operations from Peru to Australia, said its costs this...

All-in sustaining costs will probably be about $1 035 an ounce this year, compared with an August 20 estimate of $1 055 an ounce, the Johannesburg-based company said in a statement Thursday. Net earnings attributable to shareholders were $18 million in the third quarter, 50 percent higher than the previous three months.

Gold Fields has been cutting costs and paying down debt to counter a gold price that touched a five-year low of $1 064.55 an ounce on Wednesday, and is 43 percent below its June 2011 peak.

The company has been held back by production delays and personnel changes at its South Deep mine, the operation in South Africa that’s the world’s second-biggest gold ore body and holds 75 percent of Gold Fields’ reserves.

Cash outflows at South Deep were $20 million in the third quarter, compared with $27 million in the previous three months as production rose 42 percent, Gold Fields said.

The company is simplifying how it mines at the operation and will continue to making the transition to so-called high-profile destress mining until early 2017.

Due to the lower gold price, Gold Fields said its Damang operation in Ghana is “challenged in the current environment” and so the company is considering “various options” for the mine, including recapitalising it to gain access to higher-grade ore.


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