Gold Fields expects its half-year profit to fall by as much as 33%, the miner said on Thursday, due to lower output at its South African and Australian mines, as well as the delayed ramp-up of its new Chile mine.
Gold Fields said in a trading update its headline earnings per share would be between $0.34 and $0.38 in the six months to June 30, down from $0.51 during the same period last year.
The Johannesburg-based miner’s gold production is expected to be 918,000 ounces, 20% lower than the 1.154 million ounces recorded during the same period in 2023.
As a result of the forecast lower production, Gold Fields’ all-in sustaining costs – an industry measure – are expected to be 44% higher at $1,745 per ounce, compared to $1,215 per ounce previously.
Gold Fields said the drop in production was due to challenging ground conditions at South Deep mine in South Africa, excessive rains at Gruyere mine in Australia and the delayed ramp-up at Chile’s Salares Norte, blamed on bad weather.
Lower production was also reported at the St Ives mine in Australia, in line with the mine plan for 2024.
In June, the South African miner revised its gold output for the 2024 calendar year to between 2.2 million ounces to 2.3 million ounces, from the previous range of 2.33 million ounces to 2.43 million ounces.
Gold Fields will release its financial results for the half year on Aug. 23.
(By Nelson Banya; Editing by Josie Kao)
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