Gold Fields triggered a $1.4bn investment at its Damang mine in Ghana as it reported strong cash flows during the September quarter and a lowering of net debt. In its third-quarter production update, Gold Fields, which mines the majority of its gold in Australia, said it had decided to reinvest in its Damang mine to extend its life by eight years until 2024 and extract 1.56-million ounces of gold at an all-in cost of $950/oz. Gold Fields could expand production from the mine if the gold price moves above $1,400/oz sustainably, CEO Nick Holland said. In the September quarter, gold production of 537,000oz was 4% lower than a year earlier, while all-in costs climbed 8% to $1,038/oz. The gold price Gold Fields received in the quarter was 20% higher than a year earlier at $1,329/oz. Net debt fell to $1.029bn from $1.155bn at the end of the June quarter and $1.427bn last year. The higher gold price pushed up net cash flows to $152m for the quarter. Gold Fields generated $60m of net cash i...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.