JOHANNESBURG (Reuters) – South African miner Gold Fields said on Wednesday booming gold prices could drive up half-year profits by more than 300%, triggering a 10% rally in its shares.

Gold Fields has already said the COVID-19 pandemic would have a limited negative impact on its performance, even though miners have had to shut operations during lockdowns and infections among employees.

Now, it says it is set to reap hefty gains as an ultra-low interest rate environment and expectations of more economic stimulus packages to offset the economic impact of the pandemic have driven gold, its main product, to record highs.

It said its headline earnings per share – the main profit measure in South Africa – for the six months to June 30, were likely to be between 290% and 310% higher than the $0.05 per share reported last year.

“The increase in earnings for the period is driven largely by the increase in the gold price received,” it said in a trading statement, adding that attributable gold equivalent production rose only marginally.

Gold Fields kept its production guidance for the full-year at the same level, but said its costs could be higher than previously flagged after these rose during the first half.