Gold Fields Ltd. GFI declared that it has entered into a three-year agreement related to wages and other employment conditions with its registered trade unions at its South Deep mine in South Africa.
Per the agreement with the National Union of Mineworkers and UASA (United Association of South Africa), there will be a 10% increase in average annual wages over the next three years. The first hike in wage came into effect from Apr 1, 2015.
The agreement was inked to suit significant operating models and labor profiles of the South Deep mine compared with other mining companies in South Africa. South Deep, being the only fully-mechanized gold mine, employs nearly 3,500 employees possessing the requisite skills. Gold Fields after considering the scarcity of mechanized mining skills in the region adopted an integrated approach in its negotiations with labor.
Gold Fields’ attributable gold equivalent production for the fourth quarter of 2014 was 556,000 equivalent ounces of gold. Moreover, the company’s all-in sustaining costs and all-in costs were $1,023 per ounce (oz) and $1,047/oz, respectively. The company generated operating cash flows of $54 million in the quarter.
Gold Fields expects attributable equivalent gold production for 2015 to be around 2.2 million ounces at an all-in sustaining cost of $1,055/oz.
Gold Fields, an unhedged gold producer with eight operating mines across Australia, Ghana, Peru and South Africa, is committed to driving margins and cash flows, while cutting debt.
Gold Fields currently carries a Zacks Rank #3 (Hold).
Better-ranked companies in the gold mining industry include Pretium Resources Inc. PVG, Asanko Gold Inc. AKG and Banro Corporation BAA. While Pretium Resources sports a Zacks Rank #1 (Strong Buy), Asanko Gold and Banro carry a Zack Rank #2 (Buy).
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