Gold Fields on the prowl for new mines

VENTURES AFRICA – JSE-listed gold miner, Gold Fields, was looking to acquire new mines in the not too distant future, CEO Nick Holland said on Thursday.

This was regardless of the slipping price of gold in recent months, he added. He made these comments as the company, which is Africa’s second biggest gold miner, posted a quarterly loss in profits.

This saw the company’s share price take a serious battering on the JSE during Thursday’s intraday trading, sagging 9.3 percent. Gold Fields posted an earnings loss of $13 million, dropping from $17 million in the previous quarter.
“But we would love to add another mine or two to the portfolio so it’s still a key focus for the group,” Holland told Reuters on Thursday.

In March this year, another JSE-listed gold miner, AngloGold Ashanti, said it had been approached by a party that wanted to acquire its shareholding in two mines in Mali. It did not name the party at the time.

AngloGold Ashanti also added that it was searching for an associate or acquirer of its US mine assets. “There are operations in countries that we operate in or countries that are close to us that might fit into our portfolio,” Holland said in what appeared to be an apparent reference to the AngloGold Ashanti’s assets.

Gold Fields has two mine operations in Ghana, where AngloGold Ashanti also has mines. Production at Gold Fields’ prized South Deep mine in South Africa sagged 25 percent because of the Christmas holidays and a four-month work safety halt. The mine is likely to break even by the close of next year, Holland said.