- By Alberto Abaterusso
Gold Fields (GFI) will report its financial results for the fiscal year of 2016 on Feb. 16. As shown in the table below, Gold Fields expects to report higher headline EPS and basic EPS than in fiscal year 2015:
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The intrinsic value of GFI
Higher earnings on a year-over-year basis are expected due to a higher average gold price realized during fiscal 2016.
The average price of gold on the London Bullion Market was $1,250.321 per troy ounce in 2016, up $90.37 on a year-over-year basis.
In addition, lower costs sustained by the South African gold producer at operations and their conversion to a stronger U.S. dollar versus local currencies where the company runs the mines, also had a positive impact on the company's bottom line.
Fewer one-time costs will enable Gold Fields to report the improvements in the income as set forth in the table above.
For 2016, Gold Fields expects to have produced gold equivalent of approximately 2.146 million ounces attributable to the company, a 0.60% decline on a year over year basis, at an AISC of $980 per ounce of gold and at an AIC of $1,006 per ounce of gold. Therefore, AISC and AIC for 2016 are expected to be 2.7% and 2% lower than those of 2015.
The gold equivalent production for 2016, attributable to the company, is expected to be in line with what Gold Fields planned with its guidance, while AISC and AIC are expected to be below the lower limit of the company's guidance on AISC ($1,000 per ounce) and AIC ($1,035 per ounce).
For 2016, Gold Fields expected to produce between 2.1 million and 2.15 million ounces of gold equivalent attributable to the company.
For the last quarter of 2016, Gold Fields expects to have produced approximately 566,000 ounces of gold equivalent attributable to the company, a 5.4% increase from the third quarter of 2016.
For Q4 2016, AISC and AIC are 11.2% and 9.3% lower than the previous quarter.
On Feb. 3, Gold Fields closed at $3.58 per share, down 1 cent from the previous trading day, with a volume of 5,044,252 shares traded on the New York Stock Exchange.
The company has approximately $820.55 million shares outstanding, of which $817.75 million is float.
The total amount of cash on hand as of the end of 2016 was approximately $503.4 million.
The total debt was approximately $1.66 billion. The gold stock is trading at 4.36 times its Ebitda.
Disclosure: I have no positions in Gold Fields Limited.
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