Gold Fields Has Big Potential As South Deep Matures
Fri, Apr. 29, 5:35 PM
Tue, Apr. 19, 8:35 AM
- Gold Fields (NYSE:GFI) +4.4% premarket after reporting its Q1 operational update, which shows the company produced 515K oz. of gold, up 3% Y/Y but down 9% from the 566K oz. produced in Q4 2015.
- Q1 tends to be a "seasonally weak quarter" due to mines restarting after Christmas holidays, GFI says in the update, but the company beat its quarterly production targets at all eight operations.
- GFI says South Deep’s Q1 output of 64K oz. was up 75% Y/Y and down 7% Q/Q, while managed production in Ghana of 181K oz. was up 4% Y/Y and down 3% Q/Q.
- GFI says a key highlight of the quarter was the conclusion of a development agreement with Ghana’s government for both Tarkwa and Damang.
- Now read Gold Fields: Ghana cuts reduce royalty rate
Mon, Apr. 11, 12:39 PM
- Gold miners are surging amid higher gold prices and a positive research note from RBC Capital, as the Market Vectors Gold Miners ETF (GDX +4.9%) powers higher with all 39 of its equity components rising.
- Kinross Gold (KGC +6.9%) and AngloGold Ashanti (AU +4.9%) are upgraded to Outperform at RBC, citing valuation amid an increase in the firm's 2016 gold price outlook to $1,250/oz. from $1,150; the firm says KGC's production profile has improved with the 2015 acquisition of mines from Barrick Gold (ABX +5.6%) and the planned Tasiast expansion, while AU represents the most robust opportunity in its South African coverage, supported by a diverse, low cost asset portfolio.
- Goldcorp (GG +3.8%) is sharply higher despite RBC's downgrade to Underperform, as the firm believes shares trade at a significant premium to Tier 1 peers and management needs to re-establish investor confidence in operations and strategy.
- Also: NEM +5.7%, AEM +4.9%, FNV +2.9%, HMY +3.8%, EGO +7.9%, NG +7.6%, HL +4.4%, GFI +3.1%, GOLD +1.7%, SBGL +6%, SLW +4.2%.
- Other ETFs: NUGT, GGN, DUST, SIL, GLDX, SGDM, ASA, SLVP, RING, PSAU, TGLDX, GDXX, GDXS
- Now read Kinross Gold: Analyst estimates following the news on Tasiast mine expansion
Tue, Apr. 5, 9:16 AM
Tue, Mar. 29, 8:57 AM
- Gold Fields (NYSE:GFI) says Ghana's government has agreed to reduce the corporate tax rate to 32.5% from 35%, retroactive to March 17, and change to a sliding scale royalty rate based on the gold price from a flat 5%, effective at the start of 2017.
- The term of the tax cut is 11 years for the Tarkwa mine and nine years for the Damang mine, each renewable for an additional five years; the mines produced a respective 586K oz. and 177K oz. of gold in FY 2015.
- The agreement could mean new life for Damang; GFI has not yet decided whether to inject more cash into the operation or suspend operations there.
Tue, Mar. 8, 5:46 PM
Tue, Mar. 8, 11:59 AM
- South African gold stocks appear fully valued after high gold prices and the weak rand have fattened miners' margins and stock prices, RBC Capital's Richard Hatch says.
- The analyst thinks Sibanye Gold (SBGL -0.1%) is most at risk for a pullback, given its 100% exposure to South Africa, the commitment to a robust dividend and the risk of underperformance from the soon-to-be-acquired platinum division.
- Hatch sees AngloGold (AU -4.9%) as the most defensive name of the group, with a well-diversified group of assets., but a lack of clear catalysts to push the stock means the shares are now fairly valued.
- Gold Fields (GFI -3.9%) is a "mixed bag," with a lack of clear progress from Australian exploration, no decision yet on Damang and a slight shortening of life at Cerro Corona, with South Deep a surprising bright spot.
- Hatch rates the three stocks at Sector Perform.
Fri, Mar. 4, 5:40 PM
Thu, Mar. 3, 5:39 PM
Mon, Feb. 22, 5:45 PM
Mon, Feb. 22, 9:19 AM
Thu, Feb. 18, 9:22 AM
Thu, Feb. 18, 3:19 AM
Tue, Feb. 16, 3:49 PM
- Gold prices tumbled to their sharpest single-session loss since March 2015, based on most-active contracts, as investors turned more optimistic on the global economy after stock markets rallied and the European Central Bank said it stood ready to boost stimulus measures if needed.
- Adding to gold's decline was a report from Goldman Sachs commodities chief Jeffrey Currie, who said it is time to bet against the traditional safe haven as investor fears are overdone and do not justify the recent rally.
- "On net, fears around China, oil and negative interest rates have likely been overstated in the gold price and other financial markets," Currie says, doubling down on an earlier prediction that gold will slump to $1,100/oz. in three months and $1,000/oz. in 12 months.
- ABX -5.2%, NEM -5.1%, GG -5.5%, AEM -4.1%, SLW -2.9%, KGC -9.5%, NG -5.8%, AU -10.1%, FNV -3.8%, GFI -10.7%, HMY -5.3%, SBGL -11.6%, IAG -10.7%, GOLD -6.5%, EGO -10.5%, AUY -7.1%, HL -7.7%.
- ETFs: GLD, SLV, GDX, NUGT, IAU, AGQ, GGN, CEF, PSLV, DUST, SIL, PHYS, USLV, SIVR, SGOL, ZSL, UGL, GLDX, DGP, GTU, SPPP, GLL, UGLD, DZZ, SLVO, GLDI, SGDM, DSLV, ASA, OUNZ, SLVP, DGL, DBS, GLTR, RING, DGZ, DGLD, DBP, WITE, PSAU, TGLDX, USV, GEUR, GYEN, JJP, UBG, GDXS, GDXX
Tue, Feb. 16, 9:13 AM| Tue, Feb. 16, 9:13 AM | 1 Comment
Fri, Feb. 12, 9:17 AM
Gold Fields Ltd. is an un-hedged producer of gold with operating mines in South Africa, Peru, Ghana and Australia. It also explores for copper in Peru. The company engages in underground and surface gold and copper mining and related activities, including exploration, development, extraction,... More
Sector: Basic Materials
Country: South Africa
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