Gold Fields back in profit, South Deep still problematic

by Reuters 2 views0

Harmony Gold posts FY loss as output falls

Bullion producer Gold Fields swung back into the black in the second quarter but cut the production outlook for its problematic South Deep mine in South Africa, a mechanised operation that has had many set backs.

The company said South Deep this year was expected to produce 6,500 kg of gold, down 8.5 percent from a pervious forecast of 7,100 kg.

South Deep, which sits atop a mammoth 40-million ounce reserve, is Gold Fields’ last remaining South African asset. It is fully mechanised and has been plagued by a number of technical difficulties.

Gold Fields said it still maintained a target of breaking even on the project by the end of 2016.

The company reported normalised earnings for the quarter to the end of June of $22 million versus a loss of $13 million in the previous quarter.

This translated into earnings of 3 U.S. cents per share, just shy of a Reuters’ forecast of 3.4 cents.