Gold Fields expects a return to profitability in FY16 - Mining Weekly
JOHANNESBURG (miningweekly.com) – Dual-listed Gold Fields expects to have swung back into the black during the year ended December 31, with earnings per share (EPS) and headline earnings per share (HEPS) surging by between 160% and 170% and 730% and 780% respectively.
In a trading update to the market, the group said its EPS for 2016 would be between $0.18 and $0.21, some $0.49 to $0.52 higher than the loss a share of $0.31 reported in the prior financial year.
Gold Fields’ 2016 HEPS are expected to be between $0.29 and $0.31 higher, reaching a range of between $0.25 and $0.27, than the headline loss a share of $0.04 reported in 2015.
Further, normalised EPS, at $0.23 to $0.25 apiece, are expected be 280% to 320% higher than the normalised EPS of $0.06 in the corresponding period.
“The increases in EPS, HEPS and normalised earnings are primarily driven by an 8% year-on-year increase in the dollar gold price and lower net operating costs in local currencies, as well as the impact of converting these costs at weaker exchange rates. In addition, EPS is impacted by lower nonrecurring items,” the company said in a statement.
Meanwhile, Gold Fields expects stable attributable gold-equivalent output during the year under review, reaching 2.1-million ounces, with all-in sustaining costs of $980/oz and all-in costs of $1 006/oz.
Gold Fields will release financial results for 2016 on February 16.
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