Gold Fields reported on Thursday an 18,6% fall in first-quarter adjusted earnings per share compared with the prevous quarter, blaming higher costs and falling output overseas.
Gold Fields, the world’s fourth biggest gold producer, said adjusted EPS, excluding the effects of financial instruments and foreign debt, declined to 61 cents in the three months to end-September from 75 cents in the previous quarter.
The earnings fell below market expectations. Six analysts polled by Reuters gave an average forecast of 68,5 cents in adjusted EPS.
Total cash costs increased 7% from R92,273 per kilogram ($405 per ounce) to R99,227 per kilogram ($435 per ounce) due to higher labour costs at the South African operations and lower production at St Ives and Tarkwa
Attributable gold production was maintained at over one million ounces, Gold Fields said.
Production at the South African operations increased from 685 000 ounces to 689 000 ounces while attributable production at the international operations decreased from 330 000 ounces to 312 000 ounces.
”Gold production and unit costs for the end-December quarter are forecast at similar levels as the September quarter,” the company said. – Reuters