Investors are cautiously watching Gold Fields as the company faces execution risk with all-in sustaining costs around 1200 per ounce, with sentiment focused on whether Ghana operations can improve margins and justify current valuations, though one trader dismissed the discussion citing algorithmic trading patterns.
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GFI sitting at 557.58 and the gold complex is looking decent on the back of weaker rand prints. If they can sustain production momentum through the cycle, the dividend yield should keep tightening valuations honest here.
So if the all-in sustaining costs are really sitting at 1200 per ounce like Pieter said, that's eating into margins when gold's been volatile. Thing is, Anglogold's managing it better, so maybe that's telling us GFI's got operational issues to fix rather than a broken gold story. Ghana operations need to come good or this just trades sideways while better-run miners move ahead.
r650 minimum, happening soon. mark it.
ag man, the story sounds good but let's see what happens with those all-in sustaining costs. last I checked they were pushing 1200 per ounce, hard to get excited about gold at these levels if you're burning that much cash. Anglogold managing better margins, so there's room for improvement here if they sort out Ghana and the local ops.
@momentumtracker_jse yeah that 550 wall is real, weak hands getting shaken out again
The Ghana turnaround is still the key story here. Production ramping up, but you need to see those all-in costs actually drop below 1100 to justify the current price. At 557 you're paying for a lot of promise, margins say the execution risk is still real.
@momentumtracker_jse wall got gobbled up pretty quick though, where you seeing resistance now?
Big wall at 550, algos not letting this run clean
Hello 546.19, momentum building
The rand weakness should be a gift but the share's stuck. Gold price up, production humming from Ghana and Peru, yet we're not seeing it in the price like we used to. Capex coming and that's spooking people more than it should, reckon the market's being too harsh on the timing. Long game still there if you can sit through the noise.
@momentumtracker_jse ja, capex is the issue. gold strength should be carrying this higher already
GFI closed at R537.80 yesterday and honestly the gold price strength should be helping more than it is. Production's solid out of Ghana and Peru but the rand weakness isn't translating to the share price like it used to, reckon investors are spooked by the capex cycle coming up. Compare that to AngloGold and the margin story looks thinner here.
ag man, gold price up but GFI lagging AngloGold on margins tells you something. The capex spend into next year is real and the rand strength we're getting now doesn't fix the production cost problem at these mines. Unless they show better unit economics out of Ghana, hard to get excited at 537.80.
eskom's got us on stage 6, can't even think straight about gold prices
Rand weakness is lekker for the gold miners right now.
@bullhammer_sa what's the cash position looking like though, capex commitments heavy?
@bullhammer_sa balance sheet is clean, margins are solid with the rand where it is. Long term play this one.
Current R 557,58 — 50% of range
Fundamentals sourced from JSE disclosures. Updated quarterly.