Gold Fields Ltd – one of the world’s largest gold mining firms – has released its half-year earnings. Profits have reportedly doubled, courtesy of a large increase in the value of gold.
The JSE-listed company announced a profit of U$156-million for the first six months of 2020. That compares exceptionally well with the U$71-million it made over the same period last year.
Nick Holland, CEO of Gold Fields said “2020 is a year that will be remembered for generations to come, with COVID-19 changing the world as we know it. It has challenged our lives and our business in every way and will continue to do so in the coming months.” He goes on to say that they are pleased to report that they have been able to deliver this high gold price in their half-year results for 2020.
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The company has said that the interim dividend will be R1,60 a share, which matches Gold Fields total dividend for 2019. Payment of dividends will take place on the 14th September.
Profits were not the only thing to increase. For the first-half of 2020, the company milled and treated 21,573 tonnes of gold compared to 17,915 tonnes last year.
Despite Covid-19 related interruptions at both the Peruvian Cerro Corona and South African South Deep mine, the South Deep mine is still said to have contributed a net cash inflow of U$5-million and Cerro Corona U$49-million.
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It is the Australian Gold Fields operation that delivered exceptionally well, however. Gold production increased by a considerable 14%, while an overall net cash flow of U$208-million shattered the 2019 figure of U$92-million.
Despite the healthy gold prices and increased interest in the precious metal, the company is still playing it safe. “While we have seen new records for the gold price in recent weeks, we continue to run and plan our business at lower gold prices.”
