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Gold Fields reports decline in gold-equivalent production for Q3 2023

EditorAmbhini Aishwarya
Published 2023/11/16, 12:18
© Reuters.
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Gold Fields (NYSE:GFI), a globally diversified gold producer, has reported a noticeable downturn in its production figures for the third quarter of 2023. The company's gold-equivalent production saw a 9% decrease compared to the same period last year and a 6% drop from the previous quarter.

The most significant reduction was witnessed in its Ghana operations, where the Damang mine experienced declining volumes and Tarkwa faced safety-related stoppages. As a result, Ghanaian mines reported a 14% year-on-year fall in production to 185 koz.

In Australia, Gold Fields' output decreased by 5% year-on-year and 8% quarter-on-quarter, totaling 244 koz. This was attributed to lower grades mined at Granny Smith, St Ives, and Agnew mines, compounded by skills shortages and ventilation issues.

South Africa's managed production declined by 8% on a year-on-year basis but saw an increase of 19% from the previous quarter, reaching 81 koz. This improvement was due to factors such as ore phasing, gold in process release, and stockpile movements.

Cerro Corona mine in Peru also experienced setbacks with a 14% reduction both year-on-year and quarter-on-quarter, producing just 52 koz. The mine faced challenges including processing lower grades of gold and copper as well as diminished metallurgical recoveries.

The financial implications of these production decreases were significant, with Gold Fields' all-in costs surging by 27% year-on-year to $1622/oz. The increase in costs was driven by lower volumes of gold sold and inflationary pressures affecting all operations. Additionally, initial expenditures on pre-production capital at the Windfall Project in Canada contributed to the cost escalation.

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