Gold Fields Limited has announced normalised earnings of $103 million for the first half of this year compared to normalised earnings of $8 million for the same period last year.
According to Nick Holland, Chief Executive Officer (CEO) of Gold Fields, “Following Brexit at the end of June, the gold price has increased almost $100/oz and is approximately $250/oz higher than our planning price for 2016. While we welcome the increase in the US$ gold price, we remain focused on delivering on our strategic objectives and have made good progress on a number of these during H1 2016.”
Gold Fields had an operationally strong first half of 2016, with attributable gold equivalent production for the Group of 1,044koz (H1 2015: 1,036koz), at all-in sustaining costs (AISC) of US$992/oz (H1 2015: US$1,083/oz) and all-in costs (AIC) of US$1,024/oz (H1 2015: US$1,108/oz).
In line with the trading statement, published on 19 July, headline earnings for H1 2016 was $124m or $0.16/share compared with $5m or $0.01/share reported for H1 2015.
The increase in earnings was primarily driven by an increase in the US$ gold price (3 percent YoY) and good cost control which resulted in lower net operating costs in local currencies, as well as the impact of converting these costs at weaker exchange rates.
In H1 2016, the A$ was 5% weaker YoY and the rand was 29% weaker YoY, against the US$.
The Group generated net cash flow of $60m for H1 2016 compared to $1m in H1 2015, mainly due to the higher profit reported for the period and took into account $22m spent on further drilling at Salares Norte.
An interim dividend of 50 SA cents per share (gross) is payable on 12 September 2016.
This is 12.5 times higher than the 2015 interim dividend of R0.04/share.
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