South Africa’s Gold Fields expects its half-year profit to rise by as much as 236 per cent, it said on Monday, on the back of higher gold production and record high bullion prices.
In a trading update, Gold Fields said its headline earnings per share would be between $1.09 and $1.21 in the six months to June 30, compared with $0.36 during the same period last year.
The spot gold price is up more than 30 per cent year on year, having reached a peak of $3,500 per ounce in April, before falling to current levels around $3,356.91 per ounce.
Strong investment demand, reflecting US. growth and tariff-related inflation concerns, as well as central bank buying and resilient jewellery demand, are expected to drive bullion prices higher.
Gold Fields said its gold production rose 24 per cent in the first half to 1.136 million ounces, from 918,000 ounces previously.
The production ramp-up at Gold Fields’ Salaries Norte mine in Chile, which was impacted by a harsh winter last year, has been smoother this year, resulting in a 46 per cent jump in output from the new mine.
Gold Fields expects to produce between 2.25 and 2.45 million ounces of gold during the full year.
—Reuters