Gold miner Gold Fields’s shares tumbled 12% yesterday after it reported a 11.1% decline in interim profit due to lower sales and production, despite this, it declared a dividend.
By 3.46pm the share was 9.31% lower at R222.55 on the JSE yesterday.
In its interim results for the six months ended June 30, 2023, the group said profit dropped by 11.1% year on year to $474.6 million (R9.1 billion), while gold production declined by 3.9% to 1.154 million ounces, underpinned by the planned decline in production from Damang in Ghana.
Gold Fields reported that headline earnings per share fell to $0.51 in the reported period from $0.58 a year earlier.
The group has nine operating mines in Australia, South Africa, and Ghana, including the Asanko JV and Peru, and two projects in Canada and Chile,
All-in sustaining cost (AISC) for the first half of 2023 was $1215 per ounce, a 6% increase year on year.
Normalised earnings for the six months ended June 2023 decreased by 9% year on year to $454m, or $0.51 per share, compared to $498m, or $0.56 per share, for the first half of 2022.
“In line with our dividend policy of paying out between 30% - 45% of normalised profit as dividends, we have declared an interim dividend of 325 SA cents per share, which is compared with the 2022 interim dividend of 300 SA cents per share. This represents an 8% increase year on year,” the group said.
The dividend is declared on income cash reserves.
“Our operating environment remained challenging during the period, with elevated mining cost inflation and strong competition for skills in our key mining jurisdictions presenting significant headwinds,” the miner said in a statement.
Despite these challenges, Gold Fields delivered solid operating results, with attributable production decreasing 4% and all-in costs rising only 3%," the group said.
Gold Fields said it remained on track to meet the original production and cost guidance and it expected to deliver between 2.25 million ounces and 2.3 million ounces of gold by the end of its financial year at AISC of $1 300 to $1340 per ounce.
The group said the process to appoint a permanent CEO was ongoing. The board has held a first round of interviews with the shortlisted candidates with final interviews planned for September.
Gold Fields said its executive director and chief financial officer, Paul Schmidt, has advised the board of his intention to proceed with early retirement.
“Paul has agreed to remain with the company while the board runs the recruitment process and until such time as a suitable successor has been identified and appointed,” it said.
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