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 African bullion producer Gold Fields stuck to its annual production and costs forecasts on Friday even as it posted a 2% year-on-year drop in third-quarter output and said costs rose during the period.
Attributable equivalent gold production stood at 523,000 ounces for the three months ended Sept. 30, 3% lower than the previous quarter, while all-in sustaining costs rose 4% year-on-year, the company said in a statement.
Gold Fields, however, maintained its full-year attributable gold production outlook, adding that output is likely to be at the upper end of a previously announced guidance range.
“This provides us with a solid base to grow production and reduce all-in costs into 2020, enabling the group to generate strong free cash flow,” the company said.
The miner reduced its net debt by $97 million in the period and said it does not plan to undertake any further hedging activity for 2020 or beyond.
Gold Fields’ first-half headline earnings were pulled down by a $109 million hedging loss.
(By Emma Rumney; Editing by Aditya Soni)
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