Gold Fields Ltd. (GFI), the fourth-largest producer of the precious metal, posted a 15 percent increase in second-quarter profit as concerns that global economic growth will slow boosted prices. Profit excluding one-time items rose to 1.33 billion rand ($186 million), or 1.84 rand a share, from 1.15 billion rand, or 1.60 rand, in the first quarter, the Johannesburg-based company said in a statement today. South African analysts compare quarters sequentially rather than with the prior year. Gold rose to a record for a fourth day in London yesterday, helping the FTSE/JSE Africa Gold Mining Index to a 6.4 percent gain, the biggest jump since October 2009. The metal, which traded at $1,788.68 an ounce as of 6:43 a.m. London time, may rise to $2,000 an ounce by the year-end, Glenn Silverman, chief investment officer at Investment Solutions, said yesterday. Output by Gold Fields, Africa’s largest producer after AngloGold Ashanti Ltd. (ANG), rose to 872,000 ounces in the second quarter from 830,000 ounces in the first. The company on July 5 forecast about 872,000 ounces at a cost per ounce of about $815. Chief Executive Officer Nick Holland is seeking to boost output to mitigate costs in South Africa as mines are dug deeper and labor and energy costs rise. Mine workers in South Africa ended a five-day strike this month to settle for wage gains of as much as 10 percent, twice the rate of inflation. Average electricity tariffs in South Africa have grown by 26 percent this year. To contact the reporter on this story: Carli Lourens in Johannesburg at clourens@bloomberg.net To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net

Source