Gold Fields’ profit more than doubles

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GoldBar111 Reuters. .

Johannesburg - Gold Fields, the South African producer of the metal with mines from Peru to Australia, said second-quarter earnings more than doubled on lower costs.

Profit excluding one-time items was $18 million (R193 million) in the three months ended June 30, compared with $5 million in the previous quarter, the Johannesburg-based company said today in a statement.

Total all-in costs fell 1.9 percent to $1,093 an ounce.

The board approved an interim dividend of 0.20 rand a share.

“The safety interventions at South Deep during the quarter masked what was a better quarter for the group as a whole, in terms of costs, margins and cash flows,” chief executive Nick Holland said in a statement, referring to stoppages at its South African mine after two fatal accidents in May.

Gold Fields, which spun off three of its aging South African mines to create Sibanye Gold last year, is selling assets and cutting costs as it seeks to retain profitable mines after the price of bullion dropped 24 percent since in the start of last year.

The company agreed to sell its 51 percent stake in its Chucapaca project in Peru for $81 million this week.

Gold Fields’ output dropped 1.6 percent to 548,000 ounces in the three months to June 30 from 557,000 ounces in the previous quarter. - Bloomberg News

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