Which US presidential candidate does gold prefer?
Gold loves chaos and should be hitting new highs, especially with inflation coming down and with it, two rate cuts likely before year’s end.
South Africa’s Gold Fields on Wednesday said it expects its full-year profit to rise as much as 22% helped by a $202 million break fee it received after its deal to buy Canada’s Yamana Gold collapsed last year.
In a trading update, Gold Fields said it expects headline earnings per share (HEPS) – the profit measure commonly used in South Africa – of $1.16-$1.22 for the year to December 2022, compared to $1.00 the previous year.
“The increase in headline earnings is driven by the net proceeds relating to the Yamana break fee of $202m,” Gold Fields said.
Gold Fields in May 2022 agreed a deal with Yamana to acquire the Canadian miner in an all-share deal, but the acquisition was scuppered last November when Yamana agreed to a rival $4.8 billion takeover bid from Agnico Eagle and Pan American Silver Corp.
As a result, Yamana was liable to pay Gold Fields a break fee – a financial penalty paid by a party responsible for a deal’s collapse.
Gold Fields, which has operations in South Africa, Australia, Ghana, Peru and Chile, said it produced 2.4 million ounces of gold in 2022, up 3% from 2.34 million ounces the previous year and topping its revised guidance 2.31 to 2.36 million ounces.
Gold Fields’ all-in sustaining costs (AISC) is expected to rise by 4% percent to $1,105 per ounce, below its guidance of $1,140-$1,180 per ounce.
The company will release its 2022 financial results on Feb. 23.
(By Nelson Banya; Editing by Jason Neely)
Comments