Salares Norte (Image from archives)

South Africa’s Gold Fields on Thursday said it expects its half-year profit to rise by up to 33%, driven by higher metal prices and increased production, but flagged the impact of rising inflation on costs.

Gold Fields expects headline earnings per share (HEPS) – the main profit measure used in South Africa – of between $0.56 and $0.60 for the six months to June 30, up from $0.45 a year earlier.

It expects gold production of 1.201 million ounces, up 9% from 1.104 million ounces.

Higher operating costs driven by inflation as well as increased capital expenditure at Gold Fields’ Salares Notre project in Chile pushed all-in sustaining costs (AISC) – an industry measure of production costs – by 5% to $1,148 per ounce.

In May, the South Africa-listed miner, which has assets in Africa, Australia and South America, announced plans to acquire Yamana Gold in an all-share deal that valued the Canada-based miner at $6.7 billion on May 31.

Gold Fields expects to release its first-half results on Aug. 25.

(By Nelson Banya; Editing by Jan Harvey and Jason Neely)

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