Gold Fields Ltd., the South African miner with operations from Peru to Australia, dropped in Johannesburg trading after posting a second consecutive quarterly loss as output declined 10%.
Production fell to 501,000 ounces in the three months to March 31, giving a loss of $13.9 million, compared to a $25.5 million loss the previous quarter, the Johannesburg-based company said Thursday in a statement. The stock retreated as much as 9.4%, the most since Oct. 31.
Production decreased at all Gold Fields’ major operating regions including Peru, Australia and South Africa. Working its way through to new areas in the Cerro Corona mine in Peru and Granny Smith and Agnew operations in Australia reduced output this quarter, Chief Executive Officer Nick Holland said. A slow ramp-up in South Africa after the Christmas break also cut output.
“We planned to be lower this quarter in accordance with mine scheduling,” he said in an interview, referring to the extra time taken to reach new ore bodies.
Gold Fields maintained its annual production forecast of 2.2 million ounces at an all-in sustaining cost of $1,055 an ounce.
That “indicates we’re not going to continue at the level of production we have had in quarter one,” Holland said. “Sometimes mining is not a linear process in each quarter.”
Gold has risen less than 1% this year, providing little relief to mining companies suffering from a 29% drop in the precious metal since the beginning of 2013. It declined 0.7% to $1,184.02 an ounce at 9:43 a.m. in Johannesburg.
Gold Fields stock fell 8.1% to 46.85 rand in Johannesburg at the same time.
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