* 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.
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
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?
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.
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
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.