Is Gold Fields Ltd Mining Fools Gold?

Though Gold Fields (GFI-$16.28) has a diverse global growth pipeline, with four major projects in resource development, plans to grow annual production to 5 million ounces by 2015 are underpinned on expanding base load capacity in South Africa, home to its biggest and longer-lived mines. The KDC, Beatrix and South Deep complexes — average mine lives of 18, 13 and 42 years, compared with 5.5 years in Australia or 15 years in Peru — produced in the aggregate 446.6 million ounces of gold, or 51.2% of total processed output in the quarter ended June 30.

However, the richest of these shafts are aging, with some veins from KDC 50 to 75 years old! Ramping up production at these world-class mines requires the miners to dig deeper — more than two miles down in many places — to find more gold. Consequently, total notional costs (extraction, general and administrative and capital expenditures) are rising. Weighted-average total costs at the South African operations have increased to $1,401 per ounce, double the cost of two years ago.

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Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Falling Prices Nuke Recovery at ReneSola

Lower feed-in-tariffs in European markets are masking economic realities pressuring margins at ReneSola (SOL-$3.39). Exacerbating a demand-driven environment is overcapacity, as mainland competitors flood both domestic and global markets with photovoltaic (PV) products, from crystalline wafers to modules. Supply gluts are accelerating the drop in average selling prices (ASP) quicker than previously estimated: The ASP of solar wafers and modules in the quarter dropped to $0.69 per watt and $1.53 per watt, respectively, compared to ASP of $0.87 and $1.72 in the first quarter.

Already one of the lowest-cost wafer suppliers, the company believes it can stabilize margins and mitigate falling end-demand prices through continued efforts at manufacturing cost reductions.

Can the China-based solar manufacturer deliver?

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Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Blockbuster's New Return Policy: Surviving

In a recent interview with the LA Times, Dish Network’s (DISH-$22.72) chief executive Joe Clayton articulated that the $320 million purchase of Blockbuster (BLOAQ - $0.07) last April was integral to transforming the second-largest U.S. satellite TV provider (after DirecTV) from a pay-television service (with about 14 million subscribers) into a bigger player in wireless, broadband and an emerging competitor of streaming, online entertainment content and DVD-by-mail services to industry bellwether Netflix Inc. (NASDAQ: NFLX).

What does this move mean for stockholders of the bankrupt video-rental chain?

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Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Dividend Payout Hang-Up Expected at Frontier Communications

Frontier Communications (FTR-$6.76) paid a total of $186.6 million in cash dividends in the second quarter, which amounted to an outflow of some 77% of free cash. Is the telecom carrier’s juicy 10.4% dividend yield sustainable, especially amid rising capital expenditures and falling earnings?

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Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.