Gold Fields FY earnings halve on soft bullion prices

February 18, 2016 7:44 AM

The spot price of gold was volatile last year as markets speculated on U.S. interest rate increases which dented the appeal of non-interest yielding bullion.

A mine worker is seen underground in South Deep mine outside Johannesburg June 4,2010. REUTERS/Siphiwe Sibeko

South Africa's Gold Fields on Thursday posted a 47 percent decline in full-year earnings due to falling bullion prices and impairments.

Normalised earnings for the year to December fell to $45 million from $85 million a year earlier, the company said in a statement.

Gold fell $250 per ounce last year, peaking at $1,300 per ounce. South African producers are slightly cushioned by a decline in the rand as they earn in dollars while paying costs in the local currency.

Gold Fields- Africa's second biggest bullion producer by market value- booked impairments on the value of investments and its mines in Ghana and Australia.

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