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Gold Fields hikes interim dividend on YOY swing to profit in H1'19

Meeting expectations, Gold Fields Ltd. swung to a profit attributable to shareholders for the first half of US$70.5 million, or 9 U.S. cents per share, from a year-ago loss of US$367 million, or a loss of 45 cents per share.

The company declared an interim dividend of 60 South African cents per share, compared to the prior-year interim dividend of 20 cents per share.

Normalized profit in the half stood at US$126.2 million, or 15 U.S. cents per share, compared to US$42.8 million, or 5 cents per share, for the six months ended June 30, 2018.

Headline earnings dropped to the amended forecast of US$39.9 million, or 5 cents per share, from US$66.7 million, or 8 cents per share, a year ago.

Revenue in the period climbed 2% on a yearly basis to US$1.38 billion mainly due to higher gold sales volumes, partially offset by a lower gold price, according to Gold Fields' Aug. 15 earnings release.

The results included a loss on financial instruments of US$109.4 million, comprising a US$114 million loss on hedges partially offset by a US$5 million gain on valuation of shares and options. In the year-ago half, the company recorded a gain on financial instruments of US$23.9 million.

The results included a gain on nonrecurring items of US$19.0 million, compared to a prior-year negative charge of US$661.2 million due to an impairment at the South Deep mine in South Africa and restructuring costs related to the Tarkwa and Damang mines in Ghana.

The company's attributable gold equivalent production in the first half climbed 9% year over year to 1.1 million ounces on the back of contribution from its 50/50 joint venture with Asanko Gold Inc. over the Asanko gold mine in Ghana.

The company's gold sales, excluding the 55,100 ounces from the Asanko joint venture, increased 3% year over year to 1.06 million ounces.

Gold Fields maintained its full-year gold production guidance of 2.13 million to 2.18 million ounces at all-in sustaining costs of between US$980 per ounce and US$995/oz and all-in costs of US$1,075/oz to US$1,095/oz.