Gold Fields Limited GFI has announced its production and cost guidance for the first quarter of 2015. The company expects production in the first quarter to be lower owing to the Christmas break in South Africa and mine scheduling at its other operations.
Gold Fields projects attributable gold equivalent production for the quarter to be about 501,000 ounces (oz) at all-in Sustaining Costs (“AISC”) of $1,145/oz and all-in Costs (“AIC”) of $1,165/oz. The company reiterated its 2015 guidance of attributable gold equivalent production of 2.2 million ounces at AISC of $1,055/oz and AIC of $1,075/oz.
Gold Fields’ attributable gold equivalent production for the fourth quarter of 2014 was 556,000 equivalent ounces of gold. Moreover, the company’s AISC and AIC was $1,023/oz and $1,047/oz, respectively.
Gold Fields, an unhedged gold producer with eight operating mines across Australia, Ghana, Peru and South Africa, is committed toward driving margins and cash flows, while cutting debt.
Recently, Gold Fields declared that it has entered into a three-year agreement related to wages and other employment conditions with its registered trade unions at its South Deep mine in South Africa.
Per the agreement with the National Union of Mineworkers and UASA (United Association of South Africa), there will be a 10% increase in average annual wages over the next three years. The first hike in wage came into effect from Apr 1, 2015.
The agreement was inked to suit significant operating models and labor profiles of the South Deep mine compared with other mining companies in South Africa. South Deep, being the only fully-mechanized gold mine, employs nearly 3,500 employees possessing the requisite skills. Gold Fields, after considering the scarcity of mechanized mining skills in the region, adopted an integrated approach in its negotiations with labor.
Gold Fields currently carries a Zacks Rank #3 (Hold).
Better-ranked companies in the gold mining industry include Pretium Resources Inc. PVG, Asanko Gold Inc. AKG and Banro Corporation BAA. While Pretium Resources sports a Zacks Rank #1 (Strong Buy), Asanko Gold and Banro carry a Zack Rank #2 (Buy).
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Click to get this free report GOLD FIELDS-ADR (GFI): Free Stock Analysis Report PRETIUM RES INC (PVG): Free Stock Analysis Report BANRO CORP (BAA): Free Stock Analysis Report ASANKO GOLD INC (AKG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research