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By investing in our portfolio we ensure that we extend the lives of our mines, rather than mining them extensively for short-term benefit. This provides investors with a longer-term horizon for their capital investment, sometimes at the expense of more immediate and higher returns. Governments can rely on longer-term tax and royalty payments, while communities benefit from investments that are often more long-term and thus sustainable.
While improving the free cash-flow per ounce of gold produced is one of management’s top priorities, ensuring the longevity of our portfolio and the sustainability of its cash-generating abilities are as critical. As such, over the past three years Gold Fields has been in a reinvestment phase. Gold Fields’ total capex for 2019 was US$613m (2018: US$814m), of which US$476m was sustaining capital and US$137m was growth capital.
Our operating mines |
Our growth projects |
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GHANAGold Fields spent US$6m in near mine exploration at Tarkwa during the year, drilling 27,007m. |
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SALARES NORTEThe initial FS on the project was completed in late 2018, and the EIA approved by the Atacama Environmental Assessment Commission in December 2019. |
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AUSTRALIAIn 2019, Gold Fields spent US$73m on near-mine exploration (2018: US$80m). The majority of this – US$58m (A$84m) (2018: US$63m (A$85m)) incurred at our Australian mines. |
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GRUYEREPleasingly, Gruyere commenced production during 2019, with first gold recovered in June 2019 and sold in July 2019, in line with the revised project schedule. |
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PERUCapex increased by 70% to US$56m for the life extension of the mine. |
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DAMANGDamang generated net cash-flow of US$24m in 2019 compared with a cash outflow of US$68m in 2018. This is the first year of positive free cash-flow since the start of the project. |
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SOUTH AFRICASouth Deep demonstrated a notable improvement in most production and financial metrics during 2019. |
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ASANKOWork on embedding the acquisition of our 45% stake in AGM continued during 2019. The mine produced 251koz (100% basis) at an AISC of US$1,112/oz and AIC of US$1,214/oz in 2019. |
The consolidated summary of Gold Fields’ Mineral Resources and Mineral Reserves in this section should be read in conjunction with the Gold Fields Mineral Resource and Mineral Reserve Supplement (the Supplement), which can be found here. The Supplement sets out important and detailed technical information on the Company’s Mineral Resources and Mineral Reserves as at 31 December 2019. It is prepared in line with the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves, 2016 edition (SAMREC Code) and other leading standards as well as stock exchange regulations.
MRR SUMMARY
