- Gold Fields (GFI +0.3%) is upgraded to Neutral from Sell at Goldman Sachs, which sees upside potential in the short term given the rise in gold prices following the developments in Greece.
- However, Goldman continues to believe the South Deep project remains structurally challenged and that production from other assets is tapering.
- The new mine plan for South Deep will be released next year, and Goldman believes the final steady state guidance could potentially be much lower than the 650K-700K oz. given last year; in the event of a downward reassessment, the firm thinks GFI could need to write down resources/reserves to a significant degree.