Shares of gold miner
Gold Fields Ltd.
) moved up 2.7% after it announced improved production and costs
guidance for third-quarter 2013.
Gold Fields expects attributable Group production for the quarter
to be 496,000 equivalent ounces of gold at total cash costs and
notional cash expenditure (NCE) of around $780 per ounce and
$1,080 per ounce, respectively.
Gold Fields' attributable Group production expectation is 10%
higher than 451,000 equivalent ounces of gold produced in the
second quarter. Expected cash costs and the NCE are 9% and 13%
lower, respectively, than what achieved in the second quarter.
Gold Fields expects to achieve its production guidance of
1,825,000 to 1,900,000 ounces for 2013 as well as the cash cost
and NCE guidance of $830 per ounce and $1,240 per ounce,
respectively, as updated on Aug 22. The initial cash cost and NCE
guidance for 2013 was $860 per ounce and $1,360 per ounce,
Separately, Gold Fields successfully completed the acquisition of
Barrick Gold Corporation
) Yilgarn South assets (Yilgarn South), comprising the Granny
Smith, Lawlers and Darlot mines, in Western Australia on Oct 1.
Total net consideration for the deal was $270 million after
adjustments for working capital, mine capital and employee
entitlements. Gold Fields paid half of the total consideration by
delivering 28.7 million of its common shares and paid the
remaining half (less $30 million deposit paid on signing of the
agreement) by cash resources held by it in Australia.
The acquisition will provide Gold Fields with an additional
400,000 ounces of production to its portfolio. The deal testifies
Gold Field's strategy of attaining a more balanced and globally
diversified portfolio. With the completion of the transaction,
Australia now represents 42% of Gold Fields' production.
Gold Fields, which currently carries a Zacks Rank #2 (Buy), is
scheduled to post its third quarter results on Nov 20.
Other companies in the gold mining industry worth considering
Alamos Gold Inc.
). Both of them hold a Zacks Rank #2 (Buy).
BARRICK GOLD CP (ABX): Free Stock Analysis
ALAMOS GOLD INC (AGI): Free Stock Analysis
FRANCO NV CP (FNV): Free Stock Analysis
GOLD FIELDS-ADR (GFI): Free Stock Analysis
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