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JOHANNESBURG — Gold Fields CEO Nicholas Holland assured investors that the group is well prepared to shoulder a decline in gold prices. He was speaking to Fin24 after the firm reported that output dropped 1,6 percent to 548 000 ounces in the three months to June from 557 000 ounces the previous quarter. However, Gold Fields’ profit excluding one-time items was $18m in the second quarter, compared with $5m in the first quarter.
Holland explained to Fin24 Gold Fields’s new target strategy.
“We have taken, what we believe, is a bold step to move away from ounce of production targets to cashflow targets.
“At the beginning of the year, I set a target for us in 2014 at a gold price of $1 300 an ounce to achieve a 15 percent cashflow margin.”
He said this is after all the bills have been paid, including all taxes, royalties and all capital expenditure. — Fin24.“
Online Reporter