Gold Fields Ltd.
) has announced its production and cost guidance for the first
quarter of 2013. The company expects attributable Group
production for the new Gold Fields, excluding contribution from
Sibanye Gold, to be 476,000 equivalent ounces of gold, at total
cash costs and notional cash expenditure (NCE) of approximately
$830 per ounce and $1,290 per ounce, respectively.
The expected production for the quarter is at par with the
production outlook for 2013 of 1,825,000 to 1,900,000 ounces and
the cash cost and NCE guidance of $860 per ounce and $1,360 per
Gold Fields will include production of Jan and Feb 2013 from
Sibanye Gold in its first- quarter 2013 results. Thus, Gold
Fields expects production to be roughly 662,000 equivalent ounces
of gold at total cash costs of $915 per ounce and NCE of $1,325
per ounce. Gold Fields is scheduled to post its first quarter
results on May 10.
Gold Fields, one of the prominent gold mining companies along
Barrick Gold Corporation
), faced an illegal strike by the employees at its Tarkwa and
Damang mines in Ghana leading to an immediate halt of its
productions. At these mines, Gold Fields holds a 90% interest.
This strike is the result of a number of demands coming from the
Ghana Mineworkers Union (GMU) and its affiliates, the
Professional Managerial Staff Union and the Branch Union. These
employees even threatened Gold Fields to take industrial action
if their demands are not fulfilled favorably within 24 hours.
The demands of the Union included certain disputes in relation to
the determination of profit share payments to employees, the
unconditional reinstatement of an employee who was dismissed
following an internal disciplinary procedure, dissatisfaction
with certain management structures, removal of certain members of
senior management, concerns about catering delivery models, and
allegations of discrimination between expatriate and Ghanaian
Gold Fields is taking actions to resolve the issues by analyzing
and investigating the demands. In the meantime, Gold Fields
appealed to its employees to maintain law and order. Gold Fields
is of the opinion that the industrial action is illegal and
Gold Fields currently carries a short-term Zacks Rank #5
Other mining companies having favorable Zacks Rank are
Sandstorm Gold Ltd.
Seabridge Gold, Inc.
) with both carrying a Zacks Rank #2 (Buy).
BARRICK GOLD CP (ABX): Free Stock Analysis
GOLD FIELDS-ADR (GFI): Free Stock Analysis
SEABRIDGE GOLD (SA): Free Stock Analysis
SANDSTORM GOLD (SAND): Get Free Report
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