Surging bullion prices, weaker rand lifts Gold Fields’ H1 earnings

Gold Fields CEO, Nick Holland, sat down for an interview with CNBC Africa to discuss his upcoming retirement after leading the company for 13 years and working for a total of 24 years. Holland expressed his desire for a seamless transition as he prepares to hand over the reins of the company to his successor in 2021. Despite the challenges posed by the COVID-19 pandemic, Gold Fields has focused on prioritizing the health and safety of its employees, even halting operations to protect their well-being. The company has unfortunately experienced losses due to the virus, including the tragic passing of three colleagues. Holland emphasized the importance of putting people first and highlighted Gold Fields' commitment to supporting its workforce by continuing to pay wages during periods of halted production. Amidst the current volatile market conditions, with the gold price fluctuating, Gold Fields has opted to have no hedges beyond the end of the year, positioning the company to fully benefit from potential increases in the gold price. Holland noted that the rise in gold prices has been primarily driven by investment demand, with ETFs reaching record levels and central banks increasing their gold reserves. While industrial demand for gold remains subdued, investment demand has surged as investors seek refuge in the precious metal amidst uncertain economic conditions. Looking ahead, Holland foresees continued support for gold as long as interest rates remain low or negative, albeit with potential volatility in the market. As Holland prepares to step down from his role, he remains optimistic about the future of Gold Fields and the mining industry as a whole.