Gold prices on Tuesday hit $2,000 an ounce for the first time, the latest surge in a commodity seen as a refuge during economic uncertainty.

Gold prices have risen more than 30 percent this year as the coronavirus outbreak has weakened the economy and clouded the global financial outlook.

In a trading statement, Gold Fields, which is due to release its first-half financial results on August 20, said the increase in earnings for the period was driven largely by higher gold prices.

It said attributable gold equivalent production for the six months to June increased marginally on a year-on-year basis to 1,087 koz from 1,083 koz, with the contribution from its Gruyere mine, which only commenced production in July 2019, as well as increased production days, largely offset by the impact of work stoppages related to the Covid-19 pandemic at South Deep and Cerro Corona.

The increase in production days related to a decision taken during the second quarter to align the production months with the calendar months, which resulted in an extra 10 production days.

Gold Fields said all-in sustaining costs for the group were up 11 percent during the first half to US$986 per ounce, driven by an increase in net operating costs, sustaining capital expenditure and royalties as well as lower by-product credits.

Covid-19 related costs were estimated at approximately US$20 per ounce and were embedded in the all-in sustaining costs (AISC).

"In light of the increase in costs in the first half of 2020, we are increasing our cost guidance for the year," it said, forecasting all-in sustaining costs to now lie between $960 and $980 per ounce compared with the original guidance of between $920 and 940 per ounce.

"Potential further Covid-19 related disruptions increases the risk to group production and cost guidance," Gold Fields added.

African News Agency (ANA)