Gold Fields on Track to Meet FY13 Target - Analyst Blog
15 Luglio 2013 - 6:00PM
Zacks
Gold producer Gold Fields
Limited (GFI) announced that it is on track to meet its
production targets for 2013. The company retained its guidance of
1,825,000 and 1,900,000 ounces (oz) of gold for 2013 despite a 5%
decline in production in the second quarter of 2013 compared with
the first quarter. Cash cost and notional cash expenditure (NCE)
for the year are expected to be $860/oz and $1,360/oz,
respectively.
Gold Fields also provided its
outlook of 451,000 gold-equivalent ounces for the second quarter of
2013, with cash costs and NCE of about $860/oz and $1,250/oz,
respectively. The primary cause for the sequential decline in
production in the second quarter was the illegal strike at the
Tarkwa and Damang mines in Ghana. The illegal strike was resolved
following the settlement of issues between Gold Fields’ management
team and the Ghana Mineworkers Union (GMU).
This illegal strike resulted from a
number of demands coming from the GMU and its affiliates, the
Professional Managerial Staff Union and the Branch Union. These
employees threatened to take industrial action against Gold Fields
if their demands are not fulfilled.
Disputes relating to 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 some members of senior
management, concerns regarding catering delivery models, and
allegations of discrimination between expatriate and Ghanaian
employees are some of the causes of concern for the Union.
Gold Fields currently carries a
Zacks Rank #4 (Sell). The company is scheduled to post its second
quarter results on Aug 22.
Other companies in the mining
industry with favorable Zacks Rank are Lake Shore Gold
Corp. (LSG), NovaGold Resources Inc. (NG)
and Pretium Resources Inc. (PVG). All of them
carry a Zacks Rank #2 (Buy).
GOLD FIELDS-ADR (GFI): Free Stock Analysis Report
LAKE SHORE GOLD (LSG): Free Stock Analysis Report
NOVAGOLD RSRCS (NG): Free Stock Analysis Report
PRETIUM RES INC (PVG): Free Stock Analysis Report
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