GFI Gold Fields Ltd

   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)

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