- Gold Fields is up over 15% since it released its second quarter earnings as the company swung to a profit.
- However it is still underperforming the sector despite my bullish call last August.
- The company’s largest mine—South Deep in South Africa—continues to perform poorly and lose money, which is likely underpinning this underperformance.
- However long-term the mine will revert to profitability, and it will produce over 600,000 ounces of gold per year for 50 years.
- As South Deep goes from a loss to a profit this will be reflected in the company’s overall performance, and it should send shares substantially higher.