Gold Fields expects higher annual earnings
GOLD Fields, which operates gold mines across three continents, expects its annual headline earnings to lift by up to 13 percent, boosted by a 5 percent improvement in annual gold production.
For 12 months ended December, the mining producer’s headline share earnings for the year would be between $0.88 (R13.60) to $0.94, representing a 6 to 13 percent year-on-year improvement. Headline share earnings for the 2020 financial year were $0.82 per share.
“Basic earnings per share for the quarter were expected to range from $0.88 per share, which is 0 percent to 7 percent higher than the basic earnings of $0.82 per share reported for 2020 financial year,” Gold Fields said.
Normalised share earnings would come in at $1.02 to $1.08 a share representing a 2 percent to 8 percent year-on-year improvement. Normalised earnings of $1 per share were reported for the 2020 financial year.
Attributable gold production for the period was sitting at 234 million ounces and was at the upper end of guidance compared to 224 million gold produced in the previous year.
Fourth-quarter attributable gold equivalent production is expected to be 631 000 ounces. The all-in costs that the gold was produced for the quarter is expected to be $1 055 per ounce compared to $1 016 an ounce.
Gold Fields expects to release 2021 financial results on February 17. The mining company is expected to give an update on the $860 million Salares Norte project, a high-grade, gold-silver open pit project in Chile that is under construction.
The project is expected to meaningfully change Gold Field’s future profile by accelerating growth in production and reducing group all-in costs.
This week Gold Fields signed a partnership with tertiary institutions in the country to develop new electromagnetic and magnetic methods for deep exploration aimed at underground mining.