Gold Fields investors want blood
Holland's head on block over South Deep restructuring
Gold and platinum miners in SA have made some hard calls to close shafts and cut jobs this year. The market has been largely understanding that tough times require tough action, but this week an announcement that Gold Fields would restructure its South Deep operation is having the government and investors alike baying for blood. And the obvious target is CEO of 10 years, Nick Holland. The restructuring of South Deep, into which Gold Fields has sunk about R32bn, will entail as many as 1,560 jobs being lost. The aim is to stop the mine from bleeding about R100m a month; the hope is to one day recover some of the investment. In its interim results, Gold Fields reported a loss of $369m in the first half of the year, with the losses from South Deep largely to blame, although restructuring of operations in Ghana and impairments from a Philppines project added to the woes. The share price reacted strongly to the news and by Friday was down 20% in seven days.R32bn The amount Gold Fields has...
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