Gold Fields to Cut Jobs at South Africa Mine; Impairment to Drive 1st Half Loss
August 14 2018 - 3:11AM
Dow Jones News
By Adam Clark
Gold Fields Ltd. (GFI.JO) said Tuesday that further
restructuring at its South Deep gold mine in South Africa will lead
to significant job losses, and that it expects to report an interim
loss per share.
Gold Fields said it has taken a 4.8 billion rand ($338.9
million) impairment on the South Deep operation, where it expects
to cut up to 1,100 permanent employees and 460 contractors.
The company said it intends to consolidate mining activity at
South Deep and reduce spending. Gold Fields said it can't currently
give guidance for 2019 production from the mine.
Gold Fields said it expects a basic loss per share for the first
half of 45 cents, compared with a profit of seven cents a share in
the first half of 2017.
The company said its net loss for the first half is driven by
the South Deep impairment, and $96 million in costs related to a
change in contractor mining in Ghana.
Gold Fields expects second-quarter gold production of 504,000
ounces, up from 490,000 ounces in the first quarter. All-in
sustaining costs for the quarter are expected at $973 an ounce, up
from $955 an ounce in the prior quarter.
Write to Adam Clark at adam.clark@dowjones.com;
@AdamDowJones
(END) Dow Jones Newswires
August 14, 2018 02:56 ET (06:56 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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