[miningmx.com] — Gold Fields, the world’s fourth largest gold producer, said on Tuesday its production in the second quarter would likely rise five percent, while analysts said it would struggle to meet its year target.
“Attributable group production for the June quarter is expected to be approximately 872 000 gold equivalent ounces, which is 5 percent higher than the previous quarter,” it said in a brief guidance to investors.
The March quarter in South Africa is typically sluggish for the country’s mines as they reboot after the Christmas shut down. Output usually rises around June, sometimes sharply.
Gold Fields said six public holidays and safety-related work stoppages had constrained output in the second quarter.
The company’s target for the full year is 3.5 million to 3.7 million ounces. Analysts said it would need to ramp production up to hit that mark.
“If they are going to hit guidance for the year it will probably be the bottom of it,” said Leon Esterhuizen, a mining analyst at RBC capital markets in London.
Gold Fields’ shares gained over three percent on Monday but on Tuesday were down 0.71% to R98.04 compared to a 0.14% rise on the all-share index.
