Gold Fields, the South African gold miner, has revised its expectations for headline earnings in the first half of the year. The company attributes this revision to a decline in gold volumes sold and higher operating costs, although partially offset by higher gold prices.
Lowered Earnings Expectations
Gold Fields now anticipates headline earnings for the six months ending June 30 to be between 49 cents and 53 cents per share. This marks a 9% to 16% decrease from the previous year's earnings of 58 cents per share over the same period.
Gold Production and Costs
During the second quarter, the company expects an attributable gold equivalent production of 577,000 ounces, remaining flat compared to the first quarter. However, for the first half of the year, there is a projected 4% decrease to 1.15 million ounces.
The rise in costs is primarily attributed to lower sales, mining inflation, and increased capital expenditure. Second-quarter all-in costs are projected to be $1,454 per ounce, exceeding the first quarter's $1,343 per ounce. Additionally, all-in sustaining costs are expected to reach $1,279 per ounce, up from $1,152 per ounce.
These adjustments reflect the challenges faced by Gold Fields in the first half of the year due to various factors impacting gold volumes sold and operating costs. The company remains dedicated to navigating these obstacles and striving for continued success in the gold mining industry.