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The gold industry has moved away from saying cash costs are king, ounces of production are king, reserves are king, and is now focused on the fundamentals of creating free cash flow, says new Gold Fields CEO Nick Holland. Well, how does $800-million by December 31 sound? That’s what new broom Holland is targeting for South Africa’s second-largest gold-miner, based on four-million ounces at an all-in cost of $700/oz to $750/oz and a gold price of $900/oz, providing a possible before-tax free cash flow of $200/oz. “That’s what we’re striving for by December 31,” says Holland. December 31, 2008, is the date new Gold Fields projects on three continents hit full production, taking non-South African output to 40%.
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By:
Darlene Creamer
Published on 11th July 2008
Updated 9th July 2008
Updated 9th July 2008
