Gold Fields Issues Q2 Guidance - Analyst Blog


Gold Fields ( GFI ) has divulged its production and cost outlook for the second quarter of 2014. The South African gold miner expects attributable gold equivalent production for the quarter to be roughly 547,000 gold equivalent ounces (oz).

Moreover, Gold Fields anticipates all-in sustaining costs (AISC) and all-in costs (AIC) to be around $1,055/oz and $1,095/oz, respectively.

Based on these expectations, Gold Fields said that it remains on track to attain its full-year 2014 production guidance of roughly 2,200,000 gold equivalent ounces at an AISC of $1,125/oz and an AIC of $1,150/oz, as unveiled in Feb 2014. It will release its second-quarter results on Aug 21.

Gold Fields' shares were up as much as 4.9% in trading session on Jul 9. The stock is up 5.2% since the announcement based on last Friday's close. Gold Fields has seen its shares jump roughly 27% so far this year. 

Gold Fields is an unhedged gold producer with 8 operating mines across Australia, Ghana, Peru and South Africa. It has attributable annual gold production of around 2.02 million ounces. Moreover, it had attributable mineral reserves of roughly 49 million ounces and mineral resources of around 113 million ounces as of Dec 31, 2013. 

Gold Fields achieved attributable gold production of 557,000 gold equivalent ounces in first-quarter 2014 at an AISC of $1,066/oz and an AIC of $1,114/oz. 

Gold Fields remains committed to drive margins and cash flows and cut debt. It remains focused to achieve its medium-term goal of generating free cash flow margin of at least 15% at a gold price of $1,300/oz.

Gold Fields is a Zacks Rank #3 (Hold) stock.

Other companies in the gold industry with favorable Zacks Rank include Pretium Resources Inc. ( PVG ), Timmins Gold Corp. ( TGD ) and Agnico Eagle Mines Limited ( AEM ). While both Pretium Resources and Timmins Gold hold a Zacks Rank #1 (Strong Buy), Agnico Eagle retains a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: PVG , AEM , GFI , TGD

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