Gold Fields swings to Q1 loss

by Reuters 0

South African bullion producer Gold Fields on Thursday swung to a quarterly loss as production fell 10 per cent quarter-on-quarter due to seasonal weakness in the Christmas break and safety closures.

Gold production in the three months to March totalled 501,000 ounces.

The company reported a normalised earnings loss of $13 million, compared with earnings of $17 million in the previous quarter.

Production at its flagship South Deep mine in South Africa fell by 25 per cent due to the Christmas holidays and a four-month safety stoppage. Technical faults at the mine, have also contributed to delays and the mechanised operation is yet to turn a profit.

The company signed a three-year wage deal in April with the National Union of Mineworkers that would add 10 per cent to its already stretched cost bill.