Gold Fields swings to first quarter loss

Johannesburg - Bullion producer Gold Fields [JSE:GFI] on Thursday swung to a quarterly loss as production fell 10% quarter-on-quarter due to seasonal weakness in the Christmas break and safety closures.

Gold production in the three months to March totalled 501 000 ounces.

The company reported a normalised earnings loss of $13m, compared with earnings of $17m in the previous quarter.

Production at its flagship South Deep mine in South Africa fell by 25% due to the Christmas holidays and a four-month safety stoppage. Technical faults at the mine, have also contributed to delays and the mechanised operation is yet to turn a profit.

The company signed a three-year wage deal in April with the National Union of Mineworkers that would add 10% to its already stretched cost bill.