GFIELDS: 5,020 +67 (+1.35%)
South Africa's Gold Fields says headline earnings to fall up to 12 pct
(Adds mine life extension, gives detail)
JOHANNESBURG, Feb 8 (Reuters) - South Africa's Gold Fields
said on Thursday it expects full-year profit to fall as
much as 12 percent due to impairments and increased amortisation
cost at its mines.
The bullion miner flagged headline earnings per share -- the
main gauge of profit in South Africa -- of $0.23 to $0.26 per
share for the year ended Dec. 31, 2017, or between unchanged and
up to 12 percent lower compared to a year earlier.
The company, which also operates in Ghana and Peru, said
earnings were affected by an increase in amortisation at its
Tarkwa, Cerro Corona and St Ives operations, while its last
South African asset, South Deep, was hit by impairments.
Shares in Gold Fields were down 5.44 percent to 47.16 rand
by 1323 GMT after the profit warning.
"It was a big miss, they [the market] expected better
results from Gold Fields," said BP Bernstein trader Vasili
The company is due to report full-year results on Feb. 14.
On average, analysts were expecting 2017 earnings per share
of $0.23, according to Thomson Reuters Eikon data.
The life of its Cerro Corona mine in Peru would be extended
to 2030 from 2023 through additional tailings capacity, with
fourth quarter production expected to be 546,000 ounces, the
(Reporting by Nqobile Dludla and Tanisha Heiberg; Editing by
Edmund Blair and Adrian Croft)
© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.