Gold price back above $2,500 as Fed hints at September rate cuts
Powell’s speech also confirmed what gold traders had expected that rates are going to come off.
Gold Fields Ltd. fell the most in 10 weeks after reducing its production guidance for the second time in less than three months due to operational challenges at mines in Chile and South Africa.
The Johannesburg-listed gold miner now expects to produce 2.05 million to 2.15 million ounces of the precious metal this year, according to a statement released on Friday. Gold Fields fell as much as 10%, the most since it first cut its annual output target on June 13.
A severe winter is slowing the ramp-up of output at the company’s new Salares Norte project in Chile. The open pit mine — about 4,000 meters (13,000 feet) above sea level in the Andes mountains — is one of the main drivers of Gold Fields’ plan to replace mature assets and increase production. Challenges at its South Deep mine in South Africa also curbed output.
The “operational performance was disappointing” during the first six months of the year, with production declining by a fifth to 918,000 ounces compared with the same period in 2023, Gold Fields said. First-half profit fell 15% to $389 million, at a time when the bullion price has hit successive records.
Gold Fields should be able to hike output in the remainder of 2024 because operations in Australia, Ghana and Peru are either designed to produce more metal in the second half of the year or have overcome disruptions caused by the weather, chief executive officer Mike Fraser said in an interview.
The company’s all-in-costs rose almost 50% to $2,060 per ounce in the first half. Higher production during the rest of 2024 will bring about a “significant reduction” in those levels, Fraser added.
Earlier this month, Gold Fields announced a $1.6 billion deal to buy Osisko Mining Inc., giving the company full control of the Windfall development project in Canada.
(By William Clowes)
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