Gold Fields Says Production Rose 3% in 3Q, Backs 2017 Guidance

Gold Fields Ltd. (GFI.JO) said Monday that gold production rose in the third quarter from the second, and reaffirmed its full-year guidance despite the issues affecting its South Deep mine in South Africa.

The mining company produced 567,000 ounces of gold in the three months to Sept. 30, up from 550,000 ounces in the previous quarter. Third-quarter production was up 6% on year.

Gold Fields noted that South Deep generated 10% more gold on quarter, but that the mine hasn't been able to recover fully since the first quarter, when two fatalities impacted production. As such, full-year production is expected to be 5% to 10% below the original target of 315,000 ounces.

However, the miner expects other operations to make up the shortfall and maintains its 2017 production guidance of 2.10 million to 2.15 million ounces at an all-in cost of between $1,170 and $1,190 an ounce.

The company reported revenue of $1,276 an ounce for the third quarter, and all-in costs of $1,032 an ounce.

Gold Fields generated net cash flow of $85 million for the quarter, compared with an outflow of $67 million in the second quarter. As a result, net debt decreased to $1.30 billion from $1.37 billion at the end of June.

Write to Adam Clark at; @AdamDowJones

(END) Dow Jones Newswires

October 23, 2017 02:23 ET (06:23 GMT)