TUESDAY, 11.00AM:
MINING house Gold Fields of SA has posted a taxed profit for the year to June of R37-million, from R429-million the previous year, as the weak gold price and an extraordinary write-down as a result of problems at Northam Platinum took their toll.
Gold Fields said that as the market price of Northam shares had traded below the carrying value of the investment for an extended period, a write-down of R456-million was placed on the carrying value on June 30.
Analysts said a more realistic mewasure of Gold Fields’ performance can be had from the headline earnings, which rose 9% to 421c with a final dividend up 10c to 150c to give a total dividend of 230c from last year’s 220c. Some analysts criticised the high dividend, which may have depleted caash reserves when it may have been more prudent to conserve cash, especially in light of the bullion price. Gold Fields’ shares shed 25c on Tuesday to close at R95,25. The counter is 475c or 5% up on the month so far.