Gold Fields Reports Decline in Interim Profit Amid Operational Challenges
Gold Fields Ltd reported a drop in interim profit for the first half of 2024, impacted by adverse weather conditions and production setbacks that negatively affected output. The Johannesburg-based gold mining company also lowered its production forecast for the 2024 financial year to a range of 2.05 million to 2.15 million ounces, down from the previous estimate of 2.20 million to 2.30 million ounces. This marks a decline from the 2.30 million ounces produced in 2023.
Following the announcement, Gold Fields' shares dropped by 6.3%, reaching ZAR266.04 on Friday morning in Johannesburg.
The company reported a pretax profit from continuing operations of USD649.1 million for the first half of 2024, an 11% decrease from USD731.9 million during the same period in 2023. Revenue from continuing operations fell by 6.2% to USD2.12 billion, down from USD2.26 billion, as a result of reduced production.
Gold production from continuing operations saw a significant decline of 24%, dropping to 918,000 ounces from 1.2 million ounces in the previous year. The company's performance was hindered by challenging weather conditions and operational issues at several of its mining sites.
The all-in sustaining cost from continuing operations increased by 44% to USD1,745 per ounce, up from USD1,215. The rise in costs was mainly attributed to higher expenditures at the Gruyere and St Ives mines in Australia, as well as the South Deep mine in South Africa.
Despite a 15% increase in the average gold price received, which rose to USD2,211 per ounce from USD1,927, the strong prices were not sufficient to counterbalance the lower production and rising costs.
