CAPITAL MARKETS

Gold Fields tips big rise in earnings

Production in line but costs tracking slightly higher

Tom Hoskyns

This article is 4 years old. Images might not display.

Attributable gold production amounted to 563,000oz, up from 541,000oz in Q1, according to a trading update released on Friday.

Gold Fields operates the Agnew/Lawlers, St Ives, Granny Smith and Gruyere mine in Western Australia, South Deep in South Africa, Tarkwa in Ghana and Cerro Corona in Chile.

The company is tracking slightly below its full-year guidance range of 2.3-2.35Moz, but Gold Fields has said production would be back-weighted in the second half of the year.

Costs are tracking slightly higher than expected, with all-in sustaining costs of US$1093/oz in the first half, above the full-year cost guidance of $1020-1060/oz.

Gold Fields said headline earnings per share for the first six months of the year were expected to be 43-47c per share, more than double the prior year period but slightly below estimates by analysts at investment bank BMO Capital Markets.

The company is due to publish its half-year financial results on August 19.

"While we see costs potentially benefiting from higher production volumes in H2/21, we expect to get a better idea of cost drivers upon release of the company's detailed financial results, especially given the inflationary cost pressures starting to emerge in the mining sector," said analysts at BMO.

Expert-led Insights reports and Analytics tools built on robust data, rigorous analysis and expert commentary covering mining Risk, Projects, ESG, Leadership, and Investor Sentiment.

Expert-led Insights reports and Analytics tools built on robust data, rigorous analysis and expert commentary covering mining Risk, Projects, ESG, Leadership, and Investor Sentiment.

editions

ESG Index 2025: Benchmarking the Future of Sustainable Mining

The ESG Index provides an in-depth evaluation of the ESG performance of 60+ of the world’s largest mining companies. It assesses companies across 10 weighted indicators within 6 essential ESG pillars.

editions

Leadership Insights 2025

Leadership Insights reveals key trends in priority mining issues through interviews with 15+ top mining company executives and an industrywide survey.

editions

Mining IQ Risk Analytics

Risk Analytics offers interactive access to World Risk Insight data, allowing you to customise risk views, benchmark jurisdictions, explore data behind scores and read expert commentary to guide your decision-making.

editions

Project Pipeline Index 2025

View our 50 top mining projects, handpicked using a unique, objective selection process from an expanded database of 600+ global assets.