Gold Fields Limited (ADR) (NYSE:GFI) has been making efforts to divert the attention of its investors to the company’s projects with better perspective. The CEO of Gold Fields, Nick Holland, stated that the investors were just concentrating at the company’s South Deep project, which has been experiencing delays and higher operating costs. He clarified that the actual quality products from the company are being mined from the foreign operations by GFI.
To a large extent, Mr. Holland is perfectly right. The public is unsure of the South Deep operations and rightly so, since the company had experienced losses in its 4Q2014 and 1Q2015. However, the 2Q2015, filed recently by GFI, reported earnings of $19 million, which the company states was a result of its operations in Peru, Ghana and Australia. The company statement also revealed that it had extracted 496,000 ounces of Gold at a cost of $984 an ounce from all of its operations combined. However, the South Deep project contributed 38,700 ounces of gold at a price of $1,986 to this average.
Furthermore, the Federal Open Market committee stated that they would not be increasing the interest rates. This in turn resulted in a weaker dollar, but a surge in the pricing of commodities, including gold. Consequently, the share prices of stocks, such as GFI, have been on the rise. Unfortunately, some analysts have been weighing in negatively on the stock and recommending it a sell. Analysts at The Street Ratings were of the view that the company has been experiencing a downfall in its net operating cash flow, which is down by 13.16% since last year. Furthermore, the operating cash flow is also significantly lower than that of the industry average. Additionally, the analysts have also pointed out the net income of GFI has declined by 40%, since last year.
Gold Fields Limited (ADR) (NYSE:GFI) reported a surge of 2.68% in its share value, to reach a close at $2.88 at the end of the September 18 session.