South Africa’s Gold Fields expects its half-year profit to rise by as much as 236%, on the back of higher gold production and record high bullion prices.
In a trading update, Gold Fields said its headline earnings per share would be between US$1.09 and US$1.21 in the six months to June 30, compared with US$0.36 during the same period last year.
The spot gold price is up more than 30% year on year, having reached a peak of US$3,500 per ounce in April, before falling to current levels around US$3,356.91 per ounce.
Strong investment demand, reflecting U.S. growth and tariff-related inflation concerns, as well as central bank buying and resilient jewellery demand, are expected to drive bullion prices higher.
Gold Fields said its gold production rose 24% in the first half to 1.136 million ounces, from 918,000 ounces previously. The production ramp-up at Gold Fields’ Salaries Norte mine in Chile, which was impacted by a harsh winter last year, has been smoother this year, resulting in a 46% jump in output from the new mine.
Gold Fields expects to produce between 2.25 and 2.45 million ounces of gold during the full year.
The company will release its half-year financial results on 22nd August.
