Gold Fields quarterly output rises 12%

Gold Fields has reported a 12% increase in attributable production in the quarter to end-September and a 5% decline in all-in costs.

Group attributable gold-equivalent production for the third quarter was 510,000oz, up from 454,000oz in the second quarter, but 6% lower than the third quarter of 2023, the group said in a  statement on Thursday.

The group said there was a material improvement in its operating performance across the portfolio, with notable increases in production delivered at Gruyere and St Ives, Granny Smith (all in Australia), South Deep (SA), Tarkwa (Ghana) and Cerro Corona (Peru).

“A further step-up is expected in [the fourth quarter of] 2024, underpinned by continued improvements at Gruyere, St Ives, South Deep, Tarkwa and Cerro Corona, together with Salares Norte’s first meaningful quarterly contribution,” it said.

Group all-in costs for the third quarter decreased by 5% quarter on quarter to $1,909/oz mainly due to the higher gold sold. It was, however, 18% higher year on year due to lower gold sold compared with the third quarter of 2023, coupled with higher capital expenditure.

All in sustaining costs (AISC) for the third quarter of $1,694/oz were 3% lower quarter-on-quarter, benefiting from higher gold production but 23% higher year on year.

Net debt decreased by $30m to $1.12bn at the end of September mainly due to strong cash generation, which was partially offset by payment of the interim dividend of $152m.

After the quarter-end Gold Fields paid $1.39bn, net of cash received, in full and final settlement of the Osisko Mining acquisition, which was completed in October. This was paid from cash on hand, undrawn debt facilities and liquidity facilities totalling $750m.

The group’s South Deep mine production increased by 23% to 71,700oz with higher production underpinned by improved stope availability and improved long hole stope drilling.

The ramp-up of Salares Norte in Chile recommenced slightly ahead of the planned plant restart date of September 30 and the mine produced 198oz-equivalent during the third quarter.

Despite experiencing a late snow event in early October, ramp-up has continued according to plan and is expected to proceed into the first half of 2025, with commercial levels of production set to be achieved in the second quarter of 2025.

CEO Mike Fraser said the group expected a further step up in production in the fourth quarter and would keep group 2024 financial year guidance unchanged.

“This is underpinned by increased production at all our operations, with St Ives set to record the largest quarter-on-quarter increase in [the fourth quarter] as the Swiftsure and Invincible Footwall South open pits start contributing meaningfully,” he said.

Group attributable gold-equivalent production for 2024 is expected to be at the lower end of its guidance of 2.05-million ounces to 2.15-million ounces, with AISC of between $1,580/oz and $1,670/oz and AIC of between $1,820/oz and $1,910/oz.

mackenziej@arena.africa