Monday, 3rd October 2005 (2434 views)

The future of South African gold company Gold Fields may well lie in foreign markets, according to its chairman.

In his message to shareholders contained in the company's annual report, Chris Thompson claimed that, as the South African market matured, Gold Fields would have to look at international expansion to maintain profits.

He recognised, however, that identifying suitable markets would not be an easy task.

Mr Thompson claimed that "despite substantial inward investment over the past decade, the South African mines are mature, getting deeper and face declining grades and rising costs".

Therefore, he explained: "Gold Fields is bound to become increasingly international, using its South African base as the platform from which to grow globally."

He added: "Inflation in capital, operating and transport costs generally is affecting the economics of new projects almost everywhere which, when combined with the social and political risks of entering countries where gold is found, makes growth a challenge."

The company's annual report was overall positive, rating the previous financial year as "challenging, but successful".
At the end of June 2005, Gold Fields had attributable reserves of 64.8 million ounces.

 

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