Gold Fields Profit Doubles as Metal Rally Offsets Virus Turmoil
Gold Fields Profit Doubles as Metal Rally Offsets Virus Turmoil
Gold Fields Ltd. doubled its first-half profit as a rally in the price of gold offset mining disruptions from the coronavirus pandemic.
The Johannesburg-based producer made a slight cut to its full-year output guidance due to the uncertainty created by the pandemic. Mine disruptions in South Africa, Ghana, Peru and Australia will also push up costs more than previously expected, it said. Gold Fields joins rivals, including AngloGold Ashanti Ltd., in benefiting from surging gold prices.
“A bittersweet respite for gold companies has been the rise in this safe haven metal to record levels,” said Chief Executive Officer Nick Holland.
While remaining “reasonably cautious” in light of the pandemic, Gold Fields is pushing ahead with plans to build an $860 million mine at Salares Norte project in Chile. Work on the project hasn’t been disrupted by Covid-19 and is on track to start end of the year, the company said.
Gold Fields is shifting its focus to more profitable mines in Ghana, Australia and Peru. South Deep, which sits on the world’s second-biggest known body of gold-bearing ore, is its only remaining mine in South Africa.
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