Gold Fields Expects Earnings to Surge on Gold Price, Lower Costs
July 19 2016 - 2:48AM
Dow Jones News
By Alex MacDonald
LONDON--Gold Fields Ltd.(GFI) said Tuesday that it expects net
profit for the first half of the year to surge due to an increase
in the gold price in U.S. dollar terms and lower net operating
costs in local currencies, as well as the impact of converting
these costs at weaker exchange rates.
The South Africa-listed gold mining company said in a trading
update it expects earnings per share to rise to $0.14 in the six
months ended June 30 compared with $0.0 earnings in the first half
a year before.
Headline earnings per share, which strips out exceptional items,
is forecast to rise to $0.16 in the first half of the year compared
with $0.01 per share in the same period a year earlier.
The gold miner said the gold price has risen 3% on year during
the first half while the Australian dollar was 5% weaker and the
South African rand was 29% weaker on year against the U.S.
dollar.
For the first half of the year, attributable gold equivalent
production is forecast to rise to 1.044 million troy ounces
compared with 1.036 million ounces a year before while the all-in
sustaining cash cost is forecast to drop to $992/oz from $1,083/oz
a year earlier.
Write to Alex MacDonald at alex.macdonald@wsj.com
(END) Dow Jones Newswires
July 19, 2016 02:33 ET (06:33 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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