Back to top

Analyst Blog

Gold producer Gold Fields Limited (GFI - Snapshot Report) announced that it is on track to meet its production targets for 2013. The company retained its guidance of 1,825,000 and 1,900,000 ounces (oz) of gold for 2013 despite a 5% decline in production in the second quarter of 2013 compared with the first quarter. Cash cost and notional cash expenditure (NCE) for the year are expected to be $860/oz and $1,360/oz, respectively.

Gold Fields also provided its outlook of 451,000 gold-equivalent ounces for the second quarter of 2013, with cash costs and NCE of about $860/oz and $1,250/oz, respectively. The primary cause for the sequential decline in production in the second quarter was the illegal strike at the Tarkwa and Damang mines in Ghana. The illegal strike was resolved following the settlement of issues between Gold Fields’ management team and the Ghana Mineworkers Union (GMU).

This illegal strike resulted from a number of demands coming from the GMU and its affiliates, the Professional Managerial Staff Union and the Branch Union. These employees threatened to take industrial action against Gold Fields if their demands are not fulfilled.

Disputes relating to determination of profit share payments to employees, the unconditional reinstatement of an employee who was dismissed following an internal disciplinary procedure, dissatisfaction with certain management structures, removal of some members of senior management, concerns regarding catering delivery models, and allegations of discrimination between expatriate and Ghanaian employees are some of the causes of concern for the Union.

Gold Fields currently carries a Zacks Rank #4 (Sell). The company is scheduled to post its second quarter results on Aug 22.

Other companies in the mining industry with favorable Zacks Rank are Lake Shore Gold Corp. (LSG), NovaGold Resources Inc. (NG - Snapshot Report) and Pretium Resources Inc. (PVG - Snapshot Report). All of them carry a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%