Gold Fields Ltd. (GFI), which spun off most of its South African mines this year, returned to profit in the third quarter as production increased and the company reduced costs.
Normalized earnings, which exclude one-time items, were $12 million in the three months ended Sept. 30, compared with a loss of $36 million in the previous quarter, the Johannesburg-based company said today in a statement. Gold output climbed 10 percent to 496,000 ounces in the period while all-in sustaining costs dropped 23 percent to $1,089 an ounce.
“The main feature of the September 2013 quarter was the continuation of our concerted and focused strategy to engineer a sustainable and structural shift in the group’s cost base,” Gold Fields said in the statement.
The company’s stock has declined 50 percent this year amid a plunge in the price of bullion, which is on course for its first annual drop since 2000, and rising wage and power costs in South Africa, where Gold Fields owns the largely mechanized South Deep mine. The operation probably won’t achieve its targeted 700,000 ounces of annual production by 2016, the company said in August.
A new plan for South Deep will be announced in February, Gold Fields said.
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