Gold Fields Settles Strikes in Ghana - Analyst Blog
April 12 2013 - 7:10AM
Zacks
Gold miner Gold Fields
Ltd. (GFI) announced that its employees at the Tarkwa and
Damang mines in Ghana resumed work recently after going into
illegal strikes on Apr 2, 2013. The illegal strike was resolved
following the settlement of the issues between Gold Fields’
management team and the Ghana Mineworkers Union (GMU).
This illegal strike resulted from a number of demands coming from
the GMU and its affiliates, the Professional Managerial Staff Union
and the Branch Union. These employees threatened Gold Fields to
take industrial action if their demands are not fulfilled
favorably.
The demands of the Union included certain disputes relating to
determination of profit share payments to employees, the
unconditional reinstatement of an employee who was dismissed
following an internal disciplinary procedure, dissatisfaction with
certain management structures, removal of certain members of senior
management, concerns about catering delivery models, and
allegations of discrimination between expatriate and Ghanaian
employees.
Few days ago, Gold Fields, one of
the prominent gold mining companies along with Barrick Gold
Corporation (ABX), Goldcorp Inc. (GG) and
IAMGOLD Corp. (IAG), announced its production and
cost guidance for the first quarter of 2013.
Gold Fields expects attributable
Group production for the new Gold Fields, excluding contribution
from Sibanye Gold, to be 476,000 equivalent ounces of gold, at
total cash costs and notional cash expenditure (NCE) of
approximately $830 per ounce and $1,290 per ounce,
respectively.
The expected production for the
quarter is at par with the production outlook for 2013 of 1,825,000
to 1,900,000 ounces and the cash cost and NCE guidance of $860 per
ounce and $1,360 per ounce, respectively.
Gold Fields will include production
of Jan and Feb 2013 from Sibanye Gold in its first- quarter 2013
results. Thus, Gold Fields expects production to be roughly 662,000
equivalent ounces of gold at total cash costs of $915 per ounce and
NCE of $1,325 per ounce. Gold Fields is scheduled to post its first
quarter results on May 10.
Gold Fields currently carries a
short-term Zacks Rank #5 (Strong Sell).
BARRICK GOLD CP (ABX): Free Stock Analysis Report
GOLD FIELDS-ADR (GFI): Free Stock Analysis Report
GOLDCORP INC (GG): Free Stock Analysis Report
IAMGOLD CORP (IAG): Free Stock Analysis Report
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