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Johannesburg - World no. 4 gold producer Gold Fields
[JSE:GFI] said on Thursday its second quarter earnings fell against the
backdrop of a lower global gold price and it simplified its dividend policy to
be paid as a percentage of earnings regardless of capex.
The group declared an interim dividend of 160 cents while
its adjusted earnings per share fell about 17% to 250 cents from the previous
quarter, below a Reuters’ poll of 5 analysts that forecast 267.2 cents.
“During the quarter, Gold Fields restated its dividend
policy. Previously dividend payments were based on 50% of earnings net of
growth capital, which represented a dividend pay-out of approximately one-third
of net earnings over the past six years,” the company said.
“The new dividend policy has been simplified and provides
for a dividend pay-out of between 25% and 35% of normalised net earnings,
irrespective of capital expenditure.”
The group also slightly cut its 2012 output target to 3.4
million ounces from 3.5 million ounces in part because of 50,000 ounces in lost
production at one of its South African mines that killed 5 workers.
Production for the quarter rose 4% to 862,000 ounces, in
line with guidance the group already flagged to the market.
The dollar price for gold in the 3 months to the end of June fell about 4.7% while the rand/gold price was little changed.
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