Connect with us:
Our vision is to be the global leader in sustainable gold mining

Media

Gold Fields pleased with bid to align cost to low gold price - BDlive

Thursday, 28 January 2016

Gold Fields says its gold output last year was within 1% of the forecast set a year ago, coming in at 2.16-million ounces.

Gold Fields produced 2.22-million ounces in 2014 at an all-in cost of $1,087/oz. The all-in costs last year were $1,035/oz, against the $1,075/oz guidance provided by the company in February, when it said it expected output to be 2.17-million ounces. It will report its annual results on February 18.

"Significant inroads have been made in aligning the group’s cost profile to accommodate a lower gold price environment and we are relatively optimistic of the group’s overall prospects," said Sibonginkosi Nyanga from Momentum SP Reid Securities.

Fourth-quarter production was pegged at 566,000 ounces, unchanged from the same period in 2014.

Australian gold production increased in the December quarter to 263,000 ounces from 248,600 ounces in the September quarter, with the St Ives mine the standout performer.

In Ghana, output dipped slightly to 168,800 ounces from 174,400 ounces in the previous quarter, and in Peru, production fell to 65,900 ounces from 78,800 ounces.

At the South Deep mine, the last remaining asset in SA not unbundled into Sibanye, production climbed to 68,100 ounces from 54,900 ounces.

The mine, which is still in ramp-up mode, has come under fresh management scrutiny after missing successive production targets.

"The fourth quarter missed our estimates, with the exception of South Deep, which performed well and posted a decent production beat, which is encouraging given the company’s plan to make the mine break even by end-2016," RBC Capital Markets analyst Richard Hatch said.

RBC had forecast fourth-quarter gold output of 607,000 ounces and full-year production of 2.2-million ounces, anticipating higher production out of the three countries outside SA.

Gold Fields shares fell slightly, ending 0.34% down at R58.40, giving it a R45bn market capitalisation.

The share has gained 38% so far this year, but over a 12-month period, the share is down 10%.


Back to previous page