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Gold Fields: Reduced Risks Makes The Stock A Buy - Gold Fields Limited (NYSE:GFI) - Seeking Alpha

Tuesday, 12 April 2016

In 2012, Gold Fields (NYSE:GFI) was producing about 3.5 million ounces of gold per year, and 48% of those ounces were from the company's South African mines. But their operations in SA were struggling with high costs and labor unrest. Investors were starting to get uncomfortable with the risks associated with mining in South Africa. Some money managers won't touch companies with unions either, and it seems the unions in SA have more say than the mining companies. A stark contrast to the way the industry was in the 1970's in that country. Getting rid of (or significantly reducing) these risks meant that Gold Fields would become a much stronger company and therefore a much more attractive stock...


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