Publications
Partners
Johannesburg - Gold Fields [JSE:GFI], the world’s
fourth-largest gold producer, reported a 26% rise in quarterly earnings on
Friday, in line with expectations as its results were lifted by a favourable
exchange rate.
The group’s adjusted earnings per share increased to 368 cents
from 291c in the previous quarter, just shy of a Reuters poll of five analysts
that had seen the number coming in at 369.2c.
The company also declared a final dividend of 230c/share.
The average dollar gold price in the quarter was down
roughly 1% to $1 684.00 an ounce. But the South African currency on
average was 13% weaker against the dollar during the quarter, so in rand terms
the average price was up 12%.
This flowed to Gold Fields' bottom line as about 50% of its
output comes from its home base.
A weaker rand boosts profits for South African mining
operations, because the bulk of their costs are priced in the local currency but
they earn dollars.
As expected, the group said its production for the fourth
quarter fell 1.9% to 883 000 ounces bringing its 2011 production to 3.49
million ounces, the bottom of its forecast range.
Gold Fields said it expects 2012 output of between 3.5 and 3.7
million ounces at a total cash cost of $860/oz.
Shares of Gold Fields are up 1% this year, slightly outperforming a 1.5% decline in Johannesburg's index of gold miners.
