Gold Fields sees earnings double the back of the booming gold price

accreditation
Jack Vearey/ Getty

One of the world's largest gold mining company Gold Fields [JSE: GFI] sees earnings nearly doubling due to the increasing price of gold.

The group on Wednesday issued a trading update for the six months ended 30 June 2020.

Basic earnings per share are expected to nearly double to between 294.81c and per share and 325.84c, compared to the previous year. Headline earnings per share are expected to increase nearly four times to 336.18c and 353.42c per share.

"The increase in earnings for the period is driven largely by the increase in the gold price received," it said.

The commodity has increased more than 30% since a year ago. The market volatility brought on by the Covid-19 pandemic has contributed to investors flocking to it as a safe haven.

Gold production during the period has increased marginally, as increased production days and contributions from the newly opened Gruyere mine were offset by Covid-19 stoppages at South Deep and Cerro Corona mines. The lower copper price at Cerro Corona, resulted in lower gold equivalent ounces, the statement read.

The group's all-in sustaining costs, of which 2% are attributed to Covid-19, increased 11% year-on-year.

The increasing costs for the first half of the year have led the group to increase its cost guidance for the year, the group said potential further Covid-19 related disruptions would increase the risk to production and cost guidance.

Gold Fields is expected to release its half-year earnings on Thursday 20 August.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
Rand - Dollar
15.88
+0.1%
Rand - Pound
21.15
-0.1%
Rand - Euro
17.98
+0.2%
Rand - Aus dollar
11.35
-0.3%
Rand - Yen
0.14
+0.4%
Gold
1,779.88
+0.3%
Silver
22.81
-0.1%
Palladium
1,750.50
+0.5%
Platinum
950.00
+1.0%
Brent Crude
69.23
-5.5%
Top 40
64,730
+1.0%
All Share
71,085
+0.9%
Resource 10
68,421
+1.7%
Industrial 25
93,463
+0.4%
Financial 15
13,769
+1.3%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot