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Shares of gold miner Gold Fields Ltd. (GFI - Snapshot Report) moved up 2.7% after it announced improved production and costs guidance for third-quarter 2013.

Gold Fields expects attributable Group production for the quarter to be 496,000 equivalent ounces of gold at total cash costs and notional cash expenditure (NCE) of around $780 per ounce and $1,080 per ounce, respectively.

Gold Fields’ attributable Group production expectation is 10% higher than 451,000 equivalent ounces of gold produced in the second quarter. Expected cash costs and the NCE are 9% and 13% lower, respectively, than what achieved in the second quarter.

Gold Fields expects to achieve its production guidance of 1,825,000 to 1,900,000 ounces for 2013 as well as the cash cost and NCE guidance of $830 per ounce and $1,240 per ounce, respectively, as updated on Aug 22. The initial cash cost and NCE guidance for 2013 was $860 per ounce and $1,360 per ounce, respectively.

Separately, Gold Fields successfully completed the acquisition of Barrick Gold Corporation’s (ABX - Analyst Report) Yilgarn South assets (Yilgarn South), comprising the Granny Smith, Lawlers and Darlot mines, in Western Australia on Oct 1.

Total net consideration for the deal was $270 million after adjustments for working capital, mine capital and employee entitlements. Gold Fields paid half of the total consideration by delivering 28.7 million of its common shares and paid the remaining half (less $30 million deposit paid on signing of the agreement) by cash resources held by it in Australia.

The acquisition will provide Gold Fields with an additional 400,000 ounces of production to its portfolio. The deal testifies Gold Field’s strategy of attaining a more balanced and globally diversified portfolio. With the completion of the transaction, Australia now represents 42% of Gold Fields' production.

Gold Fields, which currently carries a Zacks Rank #2 (Buy), is scheduled to post its third quarter results on Nov 20.

Other companies in the gold mining industry worth considering are Alamos Gold Inc. (AGI - Snapshot Report) and Franco-Nevada Corporation (FNV - Snapshot Report). Both of them hold a Zacks Rank #2 (Buy).

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