Wrap Text
Delivery of first gold at the Salares Norte Project and preliminary update on Q1 2024 production volumes
Gold Fields Limited
Reg. No. 1968/004880/06)
Incorporated in the Republic of South Africa)
JSE, NYSE, DIFX Share Code: GFI
ISIN Code:ZAE000018123
(Gold Fields or the Company)
DELIVERY OF FIRST GOLD AT THE SALARES NORTE PROJECT AND PRELIMINARY
UPDATE ON Q1 2024 PRODUCTION VOLUMES
Delivery of first gold at the Salares Norte Project
Gold Fields is pleased to announce that its Salares Norte Project
(Salares Norte or the Project) has commenced production with the
delivery of first gold on Thursday, 28 March 2024. This represents
a significant milestone for the Salares Norte Project which Gold
Fields is proud to have taken from discovery, through exploration
and development to production over the past 13 years.
Mike Fraser, CEO of Gold Fields said, "We are incredibly excited
to have reached this milestone and delivered first gold in line
with the updated project schedule, as we committed in December
2023. Salares Norte is a world class project with one of the
industry's lower cost profiles and a payback period of less than
three years at current gold prices. It presents significant growth
and value uplift for our portfolio and adds meaningfully to the
cash flow profile of Gold Fields over the next few years."
Circuit A and Circuit B of the processing plant have now been
commissioned by the Project and are being handed over to the
operational team. Ramp up of the Project to steady state is
progressing with gold equivalent production of 250koz at an all-in
cost (AIC) of US$1,790/eq oz – US$1,850/eq oz expected for 2024.
Production volumes for 2025 are expected to be 580koz.
Average gold equivalent production for the first five full years
of mine life (2025 – 2029) is expected to be 485koz per annum at
an AIC of US$790/eq oz (in 2024 money), while gold equivalent
ounces produced over the life of mine (2025 – 2033) is expected to
be 360koz per annum at an AIC of US$820/eq oz (in 2024 money).
Hatch have completed a review of the ramp up schedule with an
expectation that the planned ramp up to steady state monthly
production in Q1 2025 is feasible, based on normal operating
conditions.
The Project total capital cost remains in line with the guidance
provided in February 2024 at US$1,180m – US$1,200m.
Update on Q1 2024 production volumes
Group production for Q1 2024 is expected to be lower than planned,
impacted by operational challenges at the South Deep mine and by
weather-related events in Australia and Peru.
Operational momentum at South Deep was impacted by the fatality on
2 January 2024. This was compounded by reduced stope access, due
to increased backfill rehandling, and slower stope turnaround in
current destress cuts. Actions being taken to address these
constraints are starting to yield results, with Q1 2024 production
expected to be between 57.4koz and 58.0koz (1 784kg – 1 804kg).
Although all the Australian operations were impacted by the recent
severe weather conditions, Gruyere has been particularly hard hit.
Rainfall in the region resulted in the damage and closure of the
Laverton Shire roads, which provide access to the mine. Mining
operations at Gruyere were suspended on 5 March 2024 while the
plant continued to process lower grade stockpiles until 28 March
2024. The access road remains closed with no firm date on when it
will re-open. Gruyere has opportunistically brought forward a 3-
day shutdown originally scheduled for April 2024 and is assessing
options to bring fuel and supplies in via alternative routes to
enable a resumption of the operations. Q1 2024 production for
Gruyere is therefore expected to be 64,3koz (100% basis), subject
to minor adjustments when refining of gold doré has been completed.
Production at Cerro Corona was also affected by inclement weather
during the quarter which impacted the north wall of the pit,
resulting in a resequencing of mining to the lower-grade areas. Q1
2024 production for Cerro Corona is therefore expected to be 40koz
eq – 42koz eq.
Group attributable gold equivalent production for Q1 2024 is
expected to be between 460koz and 470koz (excluding Asanko). All-
in sustaining costs (AISC) and AIC for the quarter are expected to
be impacted by the lower production and will be reported in the
Company's Q1 2024 update on 23 May 2024.
2024 annual group guidance unchanged
Annual group production and cost guidance for 2024 remains
unchanged in line with that announced on 22 February 2024 at
attributable gold equivalent production (excluding Asanko) of
between 2.33Moz and 2.43Moz. 2024 AISC is expected to be between
US$1,410/oz and US$1,460/oz, and AIC is expected to be between
US$1,600/oz and US$1,650/oz. The 2024 sustaining capital
expenditure includes A$200m (US$132m) for the St Ives renewable
power project. Excluding this project, which accounts for
approximately US$60/oz, the ranges for AISC are US$1,350/oz –
US$1,400/oz and US$1,540/oz to US$1,590/oz for AIC.
ENDS
2 April 2024
Sponsor:
JP Morgan Equities South Africa (Pty)
Investor enquiries:
Jongisa Magagula
Tel: +27 11 562 9775
Mobile: +27 67 419 9503
Email: Jongisa.Magagula@goldfields.com
Thomas Mengel
Tel: +27 11 562 9849
Mobile: +27 72 493 5170
Email: Thomas.Mengel@goldfields.com
Media enquiries:
Sven Lunsche
Tel: +27 11 562 9763
Mobile: +27 83 260 9279
Email: Sven.Lunsche@goldfields.com
Forward-looking statements
This announcement contains forward-looking statements within the
meaning of the "safe harbour" provisions of the Private Securities
Litigation Reform Act of 1995. All statements other than statements
of historical fact included in this announcement may be forward-
looking statements. Forward-looking statements may be identified
by the use of words such as "aim", "anticipate", "will", "would",
"expect", "may", "could", "believe", "target", "estimate",
"project" and words of similar meaning.
These forward-looking statements, including among others, those
relating to Gold Fields' future business strategy, development
activities and other initiatives, particularly at the Salares Norte
project, business prospects, financial positions, production and
operational guidance are necessary estimates reflecting the best
judgement of the senior management of Gold Fields and involve a
number of risks and uncertainties that could cause actual results
to differ materially from those suggested by the forward-looking
statements. By their nature, forward-looking statements involve
risk and uncertainty because they relate to future events and
circumstances and should be considered in light of various
important factors, including those set forth in Gold Fields'
Integrated Annual Report 2023 filed with the Johannesburg Stock
Exchange and annual report on Form 20-F filed with the United
States Securities and Exchange Commission (SEC) on 28 March 2024
(SEC File no. 001-31318). Readers are cautioned not to place undue
reliance on such statements. These forward-looking statements speak
only as of the date they are made. Gold Fields undertakes no
obligation to update publicly or release any revisions to these
forward-looking statements to reflect events or circumstances after
the date of this announcement or to reflect the occurrence of
unanticipated events. These forward-looking statements have not
been reviewed or reported on by the Company's external auditors.
Date: 02-04-2024 08:33:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
