Middle East, North Africa and Eurasia region

West Africa

Ghana

Tarkwa

      Sept
2012
  June
2012
 
  Gold produced - 000’oz 169.4   176.3  
  Yield  - heap leach - g/t 0.6   0.4  
            - CIL plant - g/t 1.4   1.4  
            - combined - g/t 1.0   0.9  
  Total cash cost - US$/oz 705   663  
  Notional cash expenditure - US$/oz 1,122   1,033  
  NCE margin - % 32   36  

Gold production decreased by 4 per cent from 176,300 ounces in the June quarter to 169,400 ounces in the September quarter due to the temporary suspension of the heap leach operations. Gold Fields received a directive from the Environmental Protection Agency to stop discharging water from the heap leach facilities and treat all water discharges through water treatment facilities to reduce conductivity levels. After agreeing to the construction of two water treatment plants, the temporary suspension was lifted on 9 August. The loss of production during the September quarter is estimated at 15,000 ounces.

Total tonnes mined, including capital stripping, increased from 33.6 million tonnes in the June quarter to 35.9 million tonnes in the September quarter. Ore mined decreased from 5.8 million tonnes to 5.2 million tonnes. Mined grade increased from 1.23 grams per tonne to 1.29 grams per tonne largely due to scheduling. The strip ratio, including capital stripping, increased from 4.8 to 5.9.

The CIL plant throughput increased from 2.81 million tonnes in the June quarter to 2.97 million tonnes in the September quarter due to improved mill availability and overall utilisation. Ramp-up of the secondary crusher also resulted in increased throughput rates. Yield decreased from 1.45 grams per tonne to 1.36 grams per tonne. The CIL plant produced 130,300 ounces in the September quarter compared with 131,400 ounces in the June quarter.

Total feed to the North and South heap leach sections decreased from 3.08 million tonnes to 2.19 million tonnes. Yield increased from 0.45 grams per tonne in the June quarter to 0.56 grams per tonne in the September quarter. The heap leach operation produced 39,100 ounces in the September quarter compared with 44,900 ounces in the June quarter. The decrease was attributable to the temporary suspension of operations, for the reasons described above.

Net operating costs, including gold-in-process movements, increased from US$114 million (R917 million) in the June quarter to US$117 million (R961 million) in the September quarter due to a lower build-up of gold-in-process in the September quarter. Total cash cost increased from US$663 per ounce in the June quarter to US$705 per ounce in the September quarter due to the reduced production.

Operating profit decreased from US$171 million (R1,382 million) in the June quarter to US$164 million (R1,357 million) in the September quarter as a result of the lower revenue and the increase in net operating costs.

Capital expenditure increased from US$60 million (R480 million) in the June quarter to US$71 million (R582 million) in the September quarter, with expenditure on pre-stripping, water treatment facilities and additional mining fleet being the major items.

Notional cash expenditure increased from US$1,033 per ounce in the June quarter to US$1,122 per ounce in the September quarter due to the decrease in production and increase in capital expenditure. The NCE margin decreased from 36 per cent to 32 per cent due to the higher NCE in the September quarter partly offset by the higher gold price.

Damang

      Sept
2012
  June
2012
 
  Gold produced - 000’oz 39.9   38.2  
  Yield - g/t 1.0   1.3  
  Total cash cost - US$/oz 964   995  
  Notional cash expenditure - US$/oz 1,709   1,799  
  NCE margin - % (4)   (11)  

Gold production increased by 4 per cent from 38,200 ounces in the June quarter to 39,900 ounces in the September quarter due to the improved operational performance at the process plant. Safety concerns in the southern interface between the Juno and Damang pit cutback (DPCB) together with deteriorating conditions on the East wall remain a constraint to mining volumes, thereby impacting gold production. It is expected that these constraints will remain till mid-2013.

Total tonnes mined, including capital stripping, decreased from 8.9 million tonnes in the June quarter to 8.5 million tonnes in the September quarter. This decrease was because of the curtailment of mining operations at the DPCB during heavy rainfall due to an increase in rockfall incidents during the rainy season, reducing the utilisation of the mining fleet. Ore mined decreased from 1.15 million tonnes to 0.95 million tonnes. The strip ratio increased from 6.8 to 7.9.

Tonnes processed increased from 0.93 million tonnes in the June quarter to 1.09 million tonnes in the September quarter. Despite this increase, the plant is processing below its capacity of 5 million tonnes per annum and will only increase its run rate once maintenance and upgrades to improve the mill feed size and crushing rate, aimed at eliminating constraints, are fully commissioned. Commissioning is expected by the end of the September quarter 2013. As a result, the milling rate was restricted to 4.4 million tonnes per annum to ensure plant reliability. The grind size of the ore was optimised in the September quarter which had the effect of improving gold recovery from 90 per cent to 92 per cent quarter on quarter. Once fully commissioned it is expected that the plant will maintain a throughput rate of approximately 4.9 million tonnes per annum at a recovery of 91 per cent, slightly lower than currently being achieved due to the harder blend of ore anticipated per the mining schedule.

Net operating costs, including gold-in-process movements, were constant at US$38 million (R313 million). Total cash cost decreased from US$995 per ounce to US$964 per ounce as a result of the higher production.

Operating profit increased from US$23 million (R189 million) in the June quarter to US$28 million (R231 million) in the September quarter due to increased revenue.

Capital expenditure increased from US$29 million (R234 million) to US$30 million (R248 million) with the majority of expenditure on pre-stripping, exploration and the acquisition of mining fleet.

Notional cash expenditure decreased from US$1,799 per ounce in the June quarter to US$1,709 per ounce in the September quarter due to the higher production in this quarter. The NCE margin improved from a negative 11 per cent to a negative 4 per cent due to the lower NCE and higher gold price.

The pre-leach thickener which assists the circuit’s water balance and the in-line leach reactor which maximises gravity gold recovery are planned for commissioning during the December 2012 quarter. These projects are expected to improve recoveries by around 0.3 per cent and reduce the utlisation of reagents, specifically cyanide. The revised production guidance for 2012 is estimated at approximately 165,000 ounces at a total cash cost of US$930 per ounce and an NCE of US$1,650 per ounce.