Scotiabank revises price target for Gold Fields Limited, citing operational challenges
On Friday, Scotiabank announced a revision to its price target for Gold Fields Limited (NYSE: GFI), a leading gold mining company, lowering it to $17.00 from the previous $18.00. Despite this adjustment, the firm maintained a Sector Perform rating on the stock.
The decision to revise the price target came after Gold Fields provided an updated outlook on its Salares Norte project in Chile, which represents 19% of the company’s asset net asset value (NAV). The production forecast for Salares Norte has been reduced to a range of 90,000 to 180,000 ounces of gold due to severe weather conditions leading to a temporary plant shutdown.
In addition to the project-specific guidance, Gold Fields also adjusted its overall production forecast for 2024 to between 2.2 million to 2.3 million ounces of gold, down from the previous estimate. The company also updated its cost guidance with all-in sustaining costs and all-in costs expected to be higher than previous estimates.
Despite these challenges, InvestingPro data and insights highlight Gold Fields’ strong financial position, commitment to shareholder returns, and long-term profitability. Analysts remain optimistic about the company’s potential in the current fiscal year, emphasizing its ability to navigate market fluctuations.
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