Gold Fields, which operates gold mines across three continents, said yesterday that the company remained on track to deliver its production and cost guidance for the 2023 financial year that was provided in February.
In its operational update for the quarter ended March 31, 2023, the group said attributable gold equivalent production, excluding Asanko in Ghana, was expected to be between 2.25 million and 2.30 million ounces, compared with the 2.32 million ounces achieved last year.
Gold Fields reported that group attributable equivalent gold production was 577 000 ounces – largely flat year on year (y/y), down 4% quarter on quarter (q/q).
Group AISC (all-in sustaining costs) for the quarter was $1 152 (R20 993) per ounce, also largely flat year on year and up 8% q/q. AIC (all-in costs) was $1 343 per ounce, 2% higher y/y, up 3% q/q, due to higher capital expenditure at the Salares Norte project in Chile.
The Salares Norte project continued to make positive progress during the March quarter. Total construction progress at the end of March was 90.3% compared to 85.7% at the end of quarter four 2022.
Gold Fields interim CEO Martin Preece said: “The project is fully staffed with the camp at full capacity. In addition to completing construction, the focus of the project includes dealing with punch list items to ensure successful commissioning. Total project progress was 90.4% as of the end of March 2023 compared to 86.7% at the end of December 2022.”
South Africa reported the first quarter of 2023 production of 88 000 ounces, 13% higher y/y, up 16% q/q, while the mines in Ghana produced 193 000 ounces, including 45% of Asanko, down 8% y/y down 3% q/q.
Production at Cerro Corona in Peru was 75 000 ounces. The gold equivalent was 34% higher y/y mainly due to lower gold and copper grades mined in the March 2022 quarter in line with the mining plan, Gold Fields said.
Meanwhile, the group announced a partnership with Osisko Mining to develop and mine the world-class underground Windfall Project in Quebec, Canada, now known as the Windfall Mining Group.
"Under executed and implemented transaction agreements, Gold Fields, through a 100% held Canadian subsidiary, has acquired a 50% interest in the feasibility stage Windfall Project, including exploration potential.
Preece said Gold Fields would continue to look at value-accretive inorganic opportunities to bolster its pipeline.
"These options will include greenfield targets, development projects, or bolt-on acquisitions of producing assets," he said.
In addition, the group said during the quarter, Gold Fields and AngloGold Ashanti announced an agreement on the key terms of a proposed joint venture between Gold Fields'Tarkwa and AngloGold Ashanti's neighbouring Iduapriem mines in Ghana.
"Initial engagement with the government occurred in March,with formal negotiations expected to commence in May 2023. This is a good example of a value accretive transaction that is focused on maximising the potential at one of our cornerstone assets," it said.
Preece said the recently announced partnership with Osisko Mining and the joint venture with AngloGold Ashanti in Ghana demonstrated Gold Fields' commitment to growing the value and quality of its portfolio of assets.
"Further, adding in Salares Norte, which is expected to come into production at the end of this year, strengthens Gold Fields' future production profile and enhances its position on the cost curve," he said.
By 4pm Gold Fields shares were up 4.3% at R314.57.
BUSINESS REPORT