Gold Field Ltd. returned to report profits in the third quarter of 2013 by increasing production and reducing costs. The company had spun off most its mines in South Africa this year.
The Johannesburg-based company said in a statement, normalized profits, which exclude one-time items, were $12 million in the three months completed Sept. 30, contrasted with a loss of $36 million in the preceding quarter. Gold yield ascended 10% to 496,000 ounces in the period while all-in sustaining costs fell 23% to $1,089 an ounce.
The company’s stock has turned down 50% this year amid a plunge in the cost of bullion, which is on course for its first annual fall since 2000, and rising salary and power charges in South Africa, where Gold Fields owns the mostly mechanized South Deep mine. The operation probably won’t achieve the aimed production at 700,000 ounces of annual by 2016, the firm said in August.
The South Deep mine will have a new plan to be announced in February, said Gold Fields.
Gold Fields added, ““The major characteristic of the September 2013 quarter was the continuation of our concerted and concentrated scheme to technician a sustainable and functional shift in the group’s cost base.”