Gold Fields lets price bonanza slip from grasp

GOLD Fields will report poor financial and operating results for the six months to end-June with the group’s performance made all the more disappointing because of the surge in the gold price over this period which should have boosted profits.The reason is production problems across the group in addition to the previously announced delays and production revisions at Gold Fields’ new Salares Norte mine in Chile. According to a trading statement released late on Thursday, August 8 Gold Fields indicated attributable gold equivalent production for the first half of 2024 will be 20% down at 918,000 ounces compared with the 1,15m oz produced in the first half of 2023.Headline earnings are forecast to be between 25% to 33% lower. CEO Mike Fraser said gold sales volumes are expected to improve in the second half of the year to end-December but the poor operating performance in the first half has hit the group’s operating metrics badly.All-in-costs for the six months are expected to be 47% higher at $2,060/oz (first half 2023 – $1,398/oz) and all-in sustaining costs (AISC) will be 44% up at $1,745/oz ($1,215/oz).Fraser said the AIC and AISC were also hit by an 18% increase in capital expenditure which included higher capitalised waste stripping at the Gruyere, St Ives and Tarkwa mines as well as renewable energy capital at St Ives and a higher gold inventory change cost. Fraser added production from Gruyere was lower “following a significant rainfall event” while production was lower at St Ives “in-line with the mine plan for 2024” and the ramp-up at Salares Norte was delayed as previously announced.A worrying factor – given the mine’s chequered history – is that Fraser also reported renewed issues at the South Deep mine “due to increased backfill rehandling and challenging ground conditions which have impacted stope access, stope turnaround, planned volumes and grade mix.”Headline earnings for the six months are expected to be in the range of $0.38 to $0.34 a share compared with the $0.51 reported for the first half of 2023.According to BMO Capital Markets these latest results show production and earnings to be weaker than expected. BMO expects “more visibility on group guidance” when Gold Fields reports its full financials on August 23 and commented the expected update on Salares Norte will be key to driving future cash flows.The post Gold Fields lets price bonanza slip from grasp appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.comWeiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com