South Africa’s Gold Fields expects its half-year profit to rise by as much as 236 per cent, it said on Monday, on the back of higher gold production and record high bullion prices.

In a trading update, Gold Fields said its headline earnings per share would be between $1.09 and $1.21 in the six months to June 30, compared with $0.36 during the same peri­od last year.

The spot gold price is up more than 30 per cent year on year, having reached a peak of $3,500 per ounce in April, before falling to current levels around $3,356.91 per ounce.

Strong investment demand, reflecting US. growth and tar­iff-related inflation concerns, as well as central bank buying and resilient jewellery demand, are expected to drive bullion prices higher.

Gold Fields said its gold pro­duction rose 24 per cent in the first half to 1.136 million ounces, from 918,000 ounces previously.

The production ramp-up at Gold Fields’ Salaries Norte mine in Chile, which was impacted by a harsh winter last year, has been smoother this year, resulting in a 46 per cent jump in output from the new mine.

Gold Fields expects to produce between 2.25 and 2.45 million ounces of gold during the full year.