LIMA, May 30 (Reuters) – South Africa’s Gold Fields is setting aside pursuit of new acquisitions for a year as it focuses on its existing operations and nearby prospects instead, the bullion producer’s chief executive told Reuters late on Tuesday.
Gold Fields’ finances might be “a little bit negative” this year before likely improving in 2019, when the company should begin to reap the rewards from two years of heavy investing, Nick Holland said.
In March, Gold Fields announced it was spending $202.6 million on a partnership with Canadian miner Asanko Gold Inc , part of a strategy of buying cash generative, operative mines.
But Gold Fields plans to hold off on additional acquisitions through at least early next year. “We don’t want to really stretch ourselves,” Holland said in an interview at the International Gold & Silver Symposium in Lima, Peru.
“The strategy of the company now is more focused on organic brownfields, near-mine growth, in and around where we are,” Holland said.