Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
South Africa’s Gold Fields on Thursday said it expects its half-year profit to rise by up to 33%, driven by higher metal prices and increased production, but flagged the impact of rising inflation on costs.
Gold Fields expects headline earnings per share (HEPS) – the main profit measure used in South Africa – of between $0.56 and $0.60 for the six months to June 30, up from $0.45 a year earlier.
It expects gold production of 1.201 million ounces, up 9% from 1.104 million ounces.
Higher operating costs driven by inflation as well as increased capital expenditure at Gold Fields’ Salares Notre project in Chile pushed all-in sustaining costs (AISC) – an industry measure of production costs – by 5% to $1,148 per ounce.
In May, the South Africa-listed miner, which has assets in Africa, Australia and South America, announced plans to acquire Yamana Gold in an all-share deal that valued the Canada-based miner at $6.7 billion on May 31.
Gold Fields expects to release its first-half results on Aug. 25.
(By Nelson Banya; Editing by Jan Harvey and Jason Neely)
Read more: Gold Fields slowly turning Yamana deal doubters into allies
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