INVESTORS AND MEDIA 
In the news
JOHANNESBURG, Aug 23 (Reuters) - Gold Fields (GFIJ.J), lowered its annual output forecast on Friday for the second time this year after unusually harsh winter conditions hobbled a planned ramp-up of production at a new mine in Chile.
The Johannesburg-based gold miner's initial target to raise output at the Salares Norte mine in Chile had proved "ambitious", after the early and harsh winter resulted in some pipes at its processing plant freezing, CEO Mike Fraser told Reuters on Friday.
The miner's shares fell nearly 6% in early trade in Johannesburg, hitting a two-month low.
The CEO added that the icy weather conditions meant the company lost two months of production time at the mine, located in the Atacama region of northern Chile.
"The massive lesson here is attempting a ramp up during winter was the wrong thing," Fraser said, adding that despite the delays, the $1 billion mine is still primed to bring better returns after starting gold production in March this year.
Gold Fields said its 2024 output is now forecast to be about 7% lower at between 2 million ounces and 2.15 million ounces, which would be its lowest since 2013, when it sold some of its South African mines to Sibanye Stillwater (SSWJ.J), opens new tab.
The forecast cut is the second this year after Gold Fields in June revised downwards its expectation, which had initially been targeted at 2.43 million ounces of gold.
Gold Fields started building the Salares Norte mine in 2020, but progress has also been held back by COVID-induced delays. The mine, with a full design capacity of about 580,000 ounces, is key to Gold Fields raising output to about 2.8 million ounces annually. The South African company has shifted focus away from its home country to more lucrative deposits in Ghana, Australia and the Americas. Earlier this month, it agreed to buy Canadian miner Osisko (OSK.TO), opens new tab for about $1.57 billion, in a deal that could help it grow in the Americas.
Gold Fields' profit slumped 30% to $320.7 million in the half year ended June 30, hurt by declining gold output. It also faced production setbacks at the South Deep mine in South Africa and the Gruyere mine in Australia.
