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Over the past two years, Gold Fields has been focused on reinvesting with 2019 expected to be the inflection point as project capital decreases and new projects start to contribute to the group.
“The key motivation behind the investment focus is to ensure that our portfolio of mines continues to generate cash sustainably into the foreseeable future, while at the same time lowering our costs and extending mine life,” says CEO Nick Holland.
“Having spent total project capital in excess of US$500 million over the past two years, primarily on Damang and Gruyere, Gold Fields is now well placed to maintain a production profile of approximately 2 Moz a year at our international operations in Australia, Ghana and the Americas over the medium to long term.
“This is based on current gold price levels, our attributable gold Mineral Reserves of 20 Moz in these regions as well as our track record of Resource conversion and exploration activities.
“The 2 Moz milestone is expected to be reached for the first time in 2019 as Damang increases production; Gruyere is set to come into production and our Asanko joint venture (JV) in Ghana contributes for the full year.”
Damang continued its strong performance in Q1 2019. The mine produced 57koz at AIC of US$1,027/oz and AISC of US$633/oz, a significant improvement from the 40koz produced in Q4 2018 at AIC of US$1,601/oz and AISC US$937/oz.
Project capital of US$23 million was spent at Damang during the quarter leaving US$46 million to be spent over the remainder of 2019 (predominantly in Q2 2019).
A total of 2,352 m of Resource infill drilling was completed at Amoanda during the quarter with 9,316 m planned for Q2 2019 in order to define the further extent of the orebody, which is open to the North.
Gruyere remains on target for first gold production in the June 2019 quarter and within the previously announced total cost estimate of A$621 million (100% basis).
Construction of the Gruyere processing plant is nearing completion (at 97%) with finishing works in progress across site and progressive handover to commissioning.
Mining scaled up to double shift operations in January, as scheduled, with total mining movement tracking ahead of plan.
Approximately 800,000 tonnes (100% basis) of ore have been mined and stockpiled in preparation for the plant start-up.