Gold Fields ends 2019 with a shine


Gold Fields ends 2019 with a shine

Published Date: 2020-02-07 | Source: Stephen Gunnion | Author: Stephen Gunnion

Gold Fields ends 2019 with a shine

The gold producer exceeded its production target while cutting costs and benefitting from a higher gold price.

Gold Fields says its full-year earnings will be up to three times higher than those reported in 2018 as it increased production, cut costs and benefitted from a higher gold price. It ended 2019 on a high note, with a 13% increase in attributable gold production in the fourth quarter of the year.

In a trading statement, the gold producer said headline earnings per share for the year to end-December would likely be in a range of 19 US cents to 21c, up from the 7c reported previously. That's a rise of as much as 200%. Basic earnings per share would recover to 19c to 21c from the 42c loss reported a year earlier. Normalised earnings per share were expected to be between 41c and 43c from 3c in 2018.

Gold Fields said earnings were also supported by lower impairment charges last year than in 2018.

Attributable gold production for the year increased by 8% to almost 2.2-million ounces, exceeding the upper end of its guidance range of 2.13 million to 2.18-million ounces, while all-in sustaining costs declined by 9% to $1,064 per ounce.

The company returned to profitability in the first half of its financial year as it started to reap the benefits of a two-year reinvestment programme. Production was also supported by a recovery at its South Deep mine and the 2018 acquisition of a stake in the Asanko Gold Mine in Ghana.

Its shares gained 3.3% to R94.86 yesterday. It expects to release its results on 13 February.

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