Gold Fields Production Target Marginally Missed for 2023 as Costs Jump
Tuesday, [current date]
Gold Fields, one of the leading gold producers in the world, announced that it narrowly missed its production target for 2023. The South African gold miner reported a slight decrease in gold production compared to the previous year, while costs experienced an expected surge.
According to Gold Fields, the full-year gold-equivalent production for 2023 is expected to be approximately 2.30 million ounces, marking a 4% decline from the 2.40 million ounces produced in 2022.
However, when excluding the stake in Asanko, which Gold Fields divested in December, attributable gold-equivalent fell just shy of the target at 2.24 million ounces. The miner had set a goal to produce between 2.25 million and 2.30 million ounces of gold in 2023.
Costs, measured by the all-in cost metric reflecting the total expenses incurred in gold mining, are projected to reach $1,512 per ounce. This represents a significant 15% increase compared to the previous year. The increase in costs can be attributed to lower gold sales, higher sustaining expenditure, and increased cost of sales.
Looking at the financials, earnings per share for continuing operations are expected to range between $0.88 and $0.94, which represents a 20% to 25% decrease compared to 2022.
Gold Fields remains optimistic despite falling slightly short of its production target. The company’s focus now lies in implementing measures to optimize production and manage costs effectively.
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Analyst comment
The news can be considered negative as Gold Fields marginally missed its production target for 2023 and costs have increased significantly. The market may respond negatively, as investors may be concerned about the decline in production and the higher costs. However, Gold Fields remains optimistic and will implement measures to optimize production and manage costs effectively.
