Gold Fields warns expenses are set to climb
The producer has launched a programme to develop assets rather than compete for good-quality mines when they are for sale
Gold Fields warned investors on Thursday it might spend more money in 2017 than it generated as it launched a programme to develop its assets rather than compete in the “feeding frenzy” whenever good-quality mines came up for sale. Less than five years ago, Gold Fields unbundled three cash-generative deep-level mines in SA into Sibanye Gold and disposed of a range of exploration tenements and investments in other companies to generate cash and repay debt. Gold Fields would spend $850m in 2017, said CEO Nick Holland. Of this $391m would go to projects in SA, Ghana, Australia and Chile as well as exploration around its mines in Australia as it strives to keep its production above 2-million ounces a year. The balance of the year’s expenditure would be on stay-in-business capital. Gold Fields reported operating mine cash flow of $424m in 2016. “However, for us to grow and sustain cash flow, investing is necessary. While we may spend more cash than we may generate in 2017, depending on, ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.