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Online Share Trading

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gfi update

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SimonPB
Valued Contributor
* Earnings reduced by safety measures in South Africa
* Gold production down 8 percent to 798,000 ounces
* Total cash costs rose 22 percent to $617 per ounce
* Shares added 3.23 pct, in line with 3.39 pct rise in sector
* CEO eyes acquisitions, says sees "bargains out there"


JOHANNESBURG, Oct 29 (Reuters) - Gold Fields , the world's No. 4 gold producer, on Wednesday posted an 86 percent fall in adjusted earnings in the September quarter, due to lower production mainly blamed on safety repairs and higher costs.
South Africa's Gold Fields said its safety performance in the September quarter had improved markedly, and forecast that it would produce more gold in the current quarter.
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12 REPLIES 12
Brazen
Super Contributor
Gawd, what excuse next year. They had to use Lipton's instead of 5 Roses for the miners tea?
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Tom168
Frequent Contributor
I went long yesterday around 5400. When will this share fly into the orbit? me think at least 120 rand end of NOV 2008. What u guys think?
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Shard
Super Contributor
Lol, I'm in such and interesting position for this one. My exposure is short 200 in futures and long 200 in shares, a null postition. I'm sitting with a profit between the two and i've got it for safety, hoping this one will do one more dive before it startsd strengthening again. Thats hopefully when I can get out of the short position. PS I think this market is driving me crazy, short and long the same share...wtf
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Not applicable
Your trading strategy lacks balls. Sit on the sidelines and save the brokerage fees.
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Tom168
Frequent Contributor
wow 65 rand not bad not bad!more to come as gold price broke 750 and resistance became support. end of nov 2008 will be close to 1000 US $ an ounce.
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Shard
Super Contributor
Well considering I was short only yesterday morning and then covered it before it took off... I'd rather trade with my head and not my balls thanks
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_nova
Super Contributor
good move shard. I follow a similar strategy. I'm long on value (but not the buy and hold only crowd as they're just plain stupid) and look at long term value and I trade shorts to hedge. My focus is always to block downside and to gain on upside. Looks like you do the same?
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Not applicable
Only problem is you dont buy GFI by the ounce
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Shard
Super Contributor
Pretty much, except I think I'm working in the opposite direction. Been riding GFI down on the futures short, when I saw the bear rally kicking in I grabbed some shares. When this peaks I'll dump the shares and ride the short down again. I prefer having open positions, all be they neutral to get a better feel, and I have plenty of cash to cover my margins. I'd usually cover myself using warrants but they're all so far from strike that I'm worried about the liquidity.
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_nova
Super Contributor
Yep, I agree. I don't daddle with gold shares though... not yet. Only Plats long term as the current PT price is going to squeeze supply something awful and when demand comes back...? I went short the TOP when it broke 26k and staying short as it's a given. It's hedged me perfectly. The smart way to step over the bear is to preserve, not hunt. Bears tend to be violent critters
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john_1
Super Contributor
LOL ..thats the quote of the week
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Not applicable
Tom, u may be right about the gold price, but heres my opinion on the miners : While our gold mines are being dictated to by unions theres only one direction for their profits (If any at all) and thats down. The mentality of the union is as follows: We want it all and we want it NOW! Tomorrow is not even a remote consideration in their minds. The problem is that unions have more power and influence than they can safely ( businesswise I mean) handle.In the end they will eat up everything and probably blame management. Its alot like the ANCs approach, after all where would you get a better example than from your countrys leaders. Locust mentality.
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