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Gold Fields warns of earnings plunge after production decline

Gold Fields anticipates its halfyear earnings to fall by as much as 33%, the miner said on Thursday, due to lower output at its South African and Australian mines, in addition to the delayed rampup of its brand-new Chile mine.

Gold Fields stated in a trading upgrade its headline incomes per share would be in between $0.34 and $0.38 in the 6 months to June 30, down from $0.51 throughout the very same period last year.

The Johannesburg-based miner's gold production is anticipated to be 918,000 ounces, 20% lower than the 1.154 million ounces taped throughout the same period in 2023.

As an outcome of the projection lower production, Gold Fields' all-in sustaining expenses - a market measure - are anticipated to be 44% higher at $1,745 per ounce, compared to $1,215 per ounce previously.

Gold Fields said the drop in production was because of challenging ground conditions at South Deep mine in South Africa, excessive rains at Gruyere mine in Australia and the delayed ramp-up at Chile's Salares Norte, blamed on bad weather.

Lower production was also reported at the St Ives mine in Australia, in line with the mine prepare for 2024.

In June, the South African miner revised its gold output for the 2024 fiscal year to in between 2.2 million ounces to 2.3 million ounces, from the previous variety of 2.33 million ounces to 2.43 million ounces.

Gold Fields will launch its financial outcomes for the half year on Aug. 23.

(source: Reuters)