Gold Fields drops almost 12% after announcing South Deep restructuring
Gold Fields announces a restructuring at its South Deep operation and provides a further trading statement relating to its H1 2018 results, due for release on Thursday, 16 August. South Deep has had a number of operational challenges since Gold Fields acquired it in 2006. The key challenge has been the difficulty in transitioning the mine from one run with a conventional mining mindset and practices to mining with a modern, bulk, mechanized mining approach. South Deep is a complex and unique mine, that has faced persistent issues that need to be addressed in a holistic manner which include:Rising operating and overhead costs, which are not aligned with the profile of a high-volume, medium-grade operation or with current output levels; Consistent failure to meet mining and production targets; Unique and complex mining method, long hole stoping mining at 3,000m with attendant challenging geotechnical and ground conditions requiring extensive support. shares of Gold Fields are down 11.6% to $2.97 per share in late morning trading.