JSE-listed Gold Fields made notable operational improvements in the quarter ended September 30, resulting in a 12% quarter-on-quarter increase in output to 510 000 oz and a 3% quarter-on-quarter decrease in its all-in sustaining costs to $1 694/oz.

Gold Fields achieved notable quarter-on-quarter production increases of 10% at the Gruyere mine, 16% at the Granny Smith mine and 20% at the St Ives mine, in Australia, as well as a 23% increase at the South Deep mine, in South Africa, 11% at the Tarkwa mine, in Ghana, and 14% at the Cerro Corona mine, in Peru.

Although the group recorded an increase in production compared with the prior quarter, output was 6% lower than the 542 000 oz produced in the September 2023 quarter.

CEO Mike Fraser expects more production improvements at most of its operations, including the first meaningful quarterly contribution from the newly ramped up Salares Norte mine, in Chile.

Strong cash generation in the quarter helped Gold Fields decrease its net debt by $30-million to $1.12-billion at the end of September.

After the reporting quarter, Gold Fields paid $1.39-billion to settle its acquisition of Osisko Mining, in October.

Fraser expects the group attributable gold-equivalent production for the full-year to be at the lower end of its guidance – which is set at between 2.05-million and 2.15-million ounces.  

SOUTH AFRICA

The South Deep mine’s gold production increased to 71 700 oz for the quarter, with higher production underpinned by improved stope availability. This follows positive progress having been made with backfill rehandling and improved long hole stope drilling.

The mine made significant progress in rehandling backfill material, while backfill leakage rates were also lower in the third quarter.  

The mine’s reef grade improved by 15% from 5.53 g/t to 6.34 g/t in the reporting quarter, as the mine gained access to previous destress areas and with the opening of the mining footprint.

CHILE

Gold Fields managed to ramp up the Salares Norte mine ahead of the planned restart date of September 30, with the mine having produced 198 000 oz during the third quarter of the year.

The company focused on unfreezing and purging remaining material in the primary circuits, with the installation of bypass circuits early in the country’s winter season having ensured that the main components of the plant can continue running while the main circuit is being cleaned.

The company expects to reach commercial levels of production at the mine in the second quarter of 2025, with steady-state throughout anticipated during the last quarter of 2025.

Salares Norte is poised to produce between 320 000 and 375 000 gold-equivalent ounces in 2025.

GHANA

Gold Fields has not yet managed to obtain the necessary approvals from the Ghanaian government on its proposed joint venture with AngloGold Ashanti, to merge the Tarkwa and Iduapriem mining operations.

Both companies continue to believe that a combination of the two mines into a single managed entity will result in increased life-of-mine, higher production and lower costs, thereby creating value for all stakeholders.

At the Damang mine, in which Gold Fields holds a 71.1% interest, production decreased by 11% quarter-on-quarter to 33 200 oz as the mine continued to process lower-grade stockpiled ore. The lower production was mainly owing to a 13% decrease in yield to 0.82 g/t in the September quarter.

Tarkwa’s production increased by 11% quarter-on-quarter to 128 900 oz, with grades having increased by 9% to 1.07 g/t.

AUSTRALIA

The group expects construction of its St Ives renewable-energy project to be completed in 2026, with the plant poised to deliver more than 70% of the mine’s electricity requirements and reduce electricity costs to a third of what would have previously been the cost.

Construction of the plant has been slightly delayed and, as a result, capital spend on the project for this year will be lower than originally planned.

Gold Fields also started with an expansion project on its solar farm at the Granny Smith mine, which, when completed early next year, will see the mine having 19 MW of solar capacity – an increase of 11 MW – well as 7 MW through the addition of a battery energy storage system.

When completed, the plant will enable 21% of the Granny Smith mine’s electricity requirements to be generated from renewable-energy sources.

Meanwhile, Gold Fields’ Gruyere mine managed to improve production in the third quarter following weather disruptions in the first half of the year, with tonnes mined having increased by 38% to 14.2-million tonnes, compared with 10.3-million tonnes mined in the second quarter.

The Granny Smith mine’s production increased by 16% quarter-on-quarter to 74 000 oz on the back of higher tonnages processed and increased yield.

The St Ives mine recorded a solid 20% increase in production in the third quarter to 83 800 oz owing to higher grade ore processed from underground sources. The company expects production to increase further in the remainder of the year when the Swiftsure and Invincible Footwall South openpits transition from capital waste mining to ore production.

At the Agnew mine, output increased by 7% quarter-on-quarter to 60 900 oz.

PERU

Gold Fields recorded a 14% quarter-on-quarter increase in gold-equivalent production from the Cerro Corona mine to 41 500 oz owing to higher tonnes and higher gold grades processed.

The mine did, however, experience inclement weather in the first quarter of the year, which affected the stability of the North wall of the pit, resulting in a resequencing of mining to lower grade areas.

The company has since addressed these issues and output is expected to continue recovering in the fourth quarter.