Gold Fields stock down on bad news from Peru mine
Gold Fields Ltd.'s shares fell Wednesday after the gold company said that it will have to weigh more options for a prospective mine in Peru to make it an attractive investment.
THE SPARK: The company had hoped to develop its Chucapaca project in southern Peru as an open-pit mine for gold production.
However, a feasibility study found that this would not be as profitable as expected due to high costs. Gold Fields and its partner in the project, Peruvian company Compañia de Minas Buenaventura, said they will review other options for the mine, including lowering costs or changing its mining approach.
THE BIG PICTURE: Gold Fields, based in South Africa, is one of the world's largest producers of gold. It holds a stake in eight operating mines in South Africa, Peru, Ghana and Australia.
SHARE ACTION: Shares fell 39 cents, or 3.1 percent, to $12.04. Its shares have traded between $11.71 and $17.67 in the past 52 weeks, are off about 20 percent this year.