This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Gold Fields Rises On Planned Spinoff Announcement

Stocks in this article: GFI HMY

NEW YORK (AP) â¿¿ Shares of Gold Fields climbed more than 4 percent on Thursday after announcing that it was spinning off two mines that have been wracked by labor strife.

THE SPARK: Gold Fields Ltd. said that it wants to create a new South African gold mining company from subsidiary Sibanye Gold Ltd.

Gold Fields, which is based in South Africa, is the fourth-biggest producers of gold.

Sibanye holds the KDC and Beatrix gold mines and various service companies. If approved by the New York Stock Exchange and the Johannesburg Stock Exchange, Sibanye will list as a separate, independent company on both exchanges in February 2013.

Gold Fields said that there will be no job cuts as a result of the spinoff.

BACKGROUND: There have been a string of labor disputes in South Africa's mines. Gold Fields said Monday that strikes at its KDC and Beatrix mines resulted in production losses of 35,000 ounces during its third quarter.

Last week Harmony Gold Mining Co. Ltd. said that two of its workers were killed and another injured in violence at its Kusasalethu mine near Carletonville. And violence during strikes at Lonmin PLC's platinum mine near Marikana led to the deaths of 46 people, including 34 miners who were shot dead by police.

Gold Fields spokesman Sven Lunsche said that like most other gold mines in the country, Gold Fields has experienced strikes at its KDC and Beatrix mines. Lunsche stressed that the strikes had no impact on the company's decision to spin off Sibanye, as it started discussing the spinoff possibility in the middle of the year, well before the strikes started.

SHARE ACTION: Gold Fields' stock gained 53 cents, or 4.5 percent, to $12.38 in midday trading. Over the past year, the shares have traded in a range of $11.39 to $17.34. The stock is down 24 percent for the year to date.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs