Gold Fields becomes first major international DIFX listing

'We are the first South African company and the first gold mining company to list its shares on the DIFX,' said CEO Ian Cockerill. 'We offer a leveraged investment for gold investors to diversify their portfolios and chose the DIFX above Hong Kong, Singapore and Japan as the alternative exchanges.'

With a market capitalization of $9 billion Gold Fields is easily the largest group quoted on the DIFX. And Mr. Cockerill added: 'We like the quality of thinking that has gone into this exchange and the very high market visibility that it will give us in this region.'

Gold interest rising

Gold Fields intends to follow up with a road show to top investment institutions and families across the region and hopes to double the present one per cent of its shares held in the Middle East. This is a time of mounting interest in gold-related investments, and the gold price should still rise further.

'In 2002 I outlined the five main factors in favor of a rising gold price and these have not changed,' Mr. Cockerill told AME Info. 'There is the weakening US dollar, higher oil prices, lower mining output, de-hedging by gold producers and gold as a safe haven.

'We still think the medium term gold price trend is in tact and has someway to go. Buying shares in Gold Fields offers strong leverage against a rising gold price as our costs are relatively fixed'.

Indeed, an analysis of total investment returns over the past five years shows that Gold Fields is up by 500 per cent compared with 300 per cent for US rival Newmont and 125 per cent for Barrick Gold. Holders of physical gold in the same period have only seen their money double in value.

Local profile

Listing shares on the DIFX is a way of raising this profile, and Mr. Cockerill maintains that some investors may feel more comfortable investing through a local exchange.

But this does appear more a marketing exercise than anything else as even the most modest investor with an Internet brokerage account can access the New York, London or Euronext exchanges where Gold Fields' stock is also quoted.

'We offer a very attractive way for investors to gain exposure to gold and we believe that the DIFX is the best way gateway to accessing capital in the Gulf and beyond,' according to Mr. Cockerill.

It will be interesting to see if any rival gold producers now choose to list their shares in Dubai, 'The City of Gold'. Certainly if Gold Fields picks up some major new investors they will see the advantage.