South Africa’s Gold Fields maintains annual production outlook
South African bullion producer Gold Fields stuck to its annual production and costs forecasts on Friday even as it posted a 2% year-on-year drop in third-quarter output and said costs rose during the period.
Attributable equivalent gold production stood at 523,000 ounces for the three months ended Sept. 30, 3% lower than the previous quarter, while all-in sustaining costs rose 4% year-on-year, the company said in a statement.
Gold Fields, however, maintained its full-year attributable gold production outlook, adding that output is likely to be at the upper end of a previously announced guidance range.
“This provides us with a solid base to grow production and reduce all-in costs into 2020, enabling the group to generate strong free cash flow,” the company said.
The miner reduced its net debt by $97 million in the period and said it does not plan to undertake any further hedging activity for 2020 or beyond.
Gold Fields’ first-half headline earnings were pulled down by a $109 million hedging loss.
(By Emma Rumney; Editing by Aditya Soni)