Gold Fields (GFI -0.7%) shareholders getting impatient over the failure to stem losses at the South Deep deposit in South Africa should not lose hope, CEO Nick Holland tells Bloomberg.
“There is a large resource base there, it’s well-drilled and we have spent a lot on infrastructure development costs. We are not far away, we just need more time," Holland says.
South Deep is the world’s second largest known body of gold-bearing ore but production targets have been repeatedly missed and GFI has spent more than 9B rand ($620M) into the mine in addition to the 22B rand it paid to buy the asset in 2006.
The next milestone will be the announcement of a new plan in February, and GFI likely will need about 18 months after that to assess whether it is working, Holland says.