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Gold Fields expects up to 325% earnings growth in 2020

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(Kitco News) - Gold Fields (JSE, NYSE: GFI), one of the world’s largest gold mining companies, announced Wednesday that headline earnings per share for the full-year 2020 are expected to range from US$0.81-0.85 per share, 305-325% (US$0.61-0.65 per share) higher than the headline earnings of US$0.20 per share reported for the full-year 2019.

Basic earnings per share for 2020 are expected to range from US$0.80-0.84 per share, 300-320% (US$0.60-0.64 per share) higher than the basic earnings of US$0.20 per share reported for 2019.

The company said that the increase in basic and headline earnings is driven by slightly higher production and higher gold prices received, despite the hedges that were in place during 2020.

Gold Fields’ attributable gold equivalent production for 2020 is expected to be 2,236koz, a 2% increase year-on-year (2019: 2,195koz), within the revised guidance range of 2,200 - 2,250koz. Original guidance of 2.275Moz –2.315Moz was revised in May 2020 to account for the impact of Covid-19 on the operations, mainly at South Deep and Cerro Corona.

AISC for the year is expected to be US$977/oz (2019: US$897/oz), within the revised guidance range of between US$960/oz and US$980/oz.

Gold Fields is a globally diversified gold producer with nine operating mines in Australia, Peru, South Africa and West Africa (including the Asanko JV), as well as one project in Chile. The company has total attributable annual gold-equivalent production of 2.2Moz, attributable gold-equivalent mineral reserves of 51.3Moz and mineral resources of 115.7Moz.

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