PROFITS COULD PLUNGE BY 81%

GOLD Fields warned yesterday that its profits for the year ended December would plummet by as much as 81 percent, largely due to its troubled South Deep operations. The miner said it expected its headline earnings per share for the 12 months ended December would range from $0.05-0.09 per share, lower than the headline earnings of $0.26 per share registered in the comparative period. “Revenue in financial 2018 was lower than in 2017 primarily due to lower gold sold at South Deep as a result of the restructuring and industrial action in the fourth quarter 2018, as well as the sale of Darlot in 2017,” Gold Fields said. “The other operations within the portfolio exceeded guidance for financial year 2018.” The National Union of Mineworkers last year went on a crippling six-week-long strike, protesting 1 500 retrenchments at the mine. Gold Fields paid Canada’s Barrick Gold and other shareholders R8.5 billion to acquire South Deep in 2006. Although it pumped in R30bn to convert the deep-level mine into a mechanised operation, the mine has posted losses and production problems. Gold Fields is expected to release its full-year results next week. |