Gold Fields back in profit in second quarter, South Deep mine still problematic

JOHANNESBURG: Bullion producer Gold Fields swung back into the black in the second quarter but cut the production outlook for its problematic South Deep mine in South Africa, a mechanised operation that has had many set backs.

The company said South Deep this year was expected to produce 6,500 kg of gold, down 8.5 per cent from a pervious forecast of 7,100 kg.

South Deep, which sits atop a mammoth 40-million ounce reserve, is Gold Fields' last remaining South African asset. It is fully mechanised and has been plagued by a number of technical difficulties.

Gold Fields said it still maintained a target of breaking even on the project by the end of 2016.

The company reported normalised earnings for the quarter to the end of June of $22 million versus a loss of $13 million in the previous quarter.

This translated into earnings of 3 US cents per share, just shy of a Reuters' forecast of 3.4 cents.