Gold Fields falls into loss, halves its interim dividend
Analysts grill CEO Holland at results presentation about failure to make South Deep mine profitable
Gold Fields has reported an interim net loss of $369m as it took a hefty impairment against its unprofitable sole remaining asset in SA and incurred restructuring costs in Ghana. For the six months to end-June, Gold Fields reported that it had swung to a net loss of $369m from a profit of $57m in the same period a year before. However, using a non-International Financial Reporting Standards (IFRS) metric called normalised profit, which takes into account one-off items, Gold Fields reported a profit of $43m compared with a $75m profit the year before. Applying its dividend policy to its normalised profit numbers, Gold Fields halved its interim dividend to $0.20 a share from $0.40 the year before. Net debt increased to $1.393bn from $1.365bn a year ago, while the cash balance remained virtually unchanged at $498m. Gold Fields has shed R9.05bn in value since Tuesday morning and its market capitalisation of R30.8bn is well below the R32bn it has poured into South Deep, west of Johannesb...
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