Cara Community GSM: Gold Fields

Gold Fields Ltd (NYSE: GFI) reviewed 11-11-2020

(all figures stated in USD)

Market Cap:       $9.67 B                 Share Price:        $10.62

Shares outstanding:

Cash:  $500 Million as of 30 June 2020

Debt: $1.24 Billion as of 30 June 2020

Current operations: Yes

Insiders: Nil                          Institutional: 298 institutions own approx. 42% of shares

CEO: Nick Holland               HQs: Johannesburg, South Africa

Gold Fields Limited is a major gold producer with reserves and resources in Chile, South Africa, Ghana, Australia, and Peru. It holds interests in nine operating mines

It is a Major, currently ranked #7 worldwide. The company is guiding top-end full production of 2.25 million oz of gold in 2020

Has a resource of 100 Million oz

Q2 information:

  • Gold Fields produced 550,000 Au ounces in 2Q2020
  • 1H2020 Earnings were $156 million or $0.18 per share
  • Earnings results were more than doubled from 1H2019
  • All-In Sustaining Cost was $998 (all-in cost $1065) per oz of gold 1H2020 (975 & 1060 1Q2020)

The large Salares Norte open-pit mine in Chile has been green-lighted by the company for construction, which is being managed by the Fluor Corporation’s Mining & Metals business. Salares Norte is expected to add 450,000 oz of gold per year over its first seven years at an AISC estimated at just $465. Completion is expected sometime in 2023

Bottom line:

  • Low Forward PE of 8.5 and P/FCF of 7.65
  • Definite acquisition candidate

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