SA Gold Fields Posted 36% Rise in Profit

South Africa gold producer Gold Fields announced a 36% jump in third-quarter earnings yesterday on higher prices, but weak output at a newly acquired mine disappointed investors.

Shares in the South African firm, which have gained a third this year, fell 0.2% by yesterday afternoon.

Harmony Gold and AngloGold Ashanti, gained 2.8% and 1.1% respectively.

Overall production dipped 2% during the three months to March and Gold Fields' new Choco 10 mine in Venezuela achieved around a third of projected output promised by the company that owned the mine before the takeover.

A rallying gold price, however, helped Gold Fields boost adjusted earnings per share to 76 cents from 56c in the previous quarter.

Gold Fields said output had fallen 2% to 1.023 million ounces and cash costs had risen 2% to R73 378 a kg.

Gold Fields said production in the current quarter to June was expected to be around the same level as the March quarter.