Economics
Gold Fields’ Yamana break-fee helps soften impact of $502m in 2022 impairments
COMPENSATION from Gold Fields’ failed bid for Yamana Gold last year helped soften the impact from a string of impairments booked by the South African…
COMPENSATION from Gold Fields’ failed bid for Yamana Gold last year helped soften the impact from a string of impairments booked by the South African gold producer in its 2022 financial year.
Gold Fields received a ‘break-fee’ of about $300m from Yamana and today declared that a net amount of $202m offset $502m in impairments of which the largest impairment was $325m related to a higher country risk discount rate applied to Tarkwa in Ghana.
Gold Fields also registered an impairment of $114m after writing down to nil its investment in Far South East, a gold and copper prospect in the Philippines. The company had bought a 40% stake in a company that controlled the resource.
An increase in the country risk free rate of Peru also resulted in an impairment of the firm’s ageing Cerro Corona mine totalling $63m.
The outcome is a 7% to 13% year-on-year decline in basic earnings which will be between 77 US cents a share to 83 cents/share. On a normalised basis, share earnings for the year ended December 31 was expected to range between 94 US cents/share to $1/share, a decline year-on-year of between 5% and 11%.
Gold Fields said inflationary factors also fed into the reduction in earnings. From an operational perspective, all-in costs for 2022 are expected to be 2% higher coming in at between $1,320/oz but below the guidance range of $1,370 to $1,410/oz.
All-in sustaining costs are expected to be $1,105/oz, 4% higher than in 2021 and below the lower end of the guidance range of $1,140/oz to $1,180/oz, said Gold Fields. Attributable gold production for the financial year will be 2.34 million ounces representing a 3% increase year-on-year and exceeding guidance range of 2.31 and 2.36 million oz.
The post Gold Fields’ Yamana break-fee helps soften impact of $502m in 2022 impairments appeared first on Miningmx.
Argentina Is One of the Most Regulated Countries in the World
In the coming days and weeks, we can expect further, far‐reaching reform proposals that will go through the Argentine congress.
Crypto, Crude, & Crap Stocks Rally As Yield Curve Steepens, Rate-Cut Hopes Soar
Crypto, Crude, & Crap Stocks Rally As Yield Curve Steepens, Rate-Cut Hopes Soar
A weird week of macro data – strong jobless claims but…
Fed Pivot: A Blend of Confidence and Folly
Fed Pivot: Charting a New Course in Economic Strategy Dec 22, 2023 Introduction In the dynamic world of economics, the Federal Reserve, the central bank…