Review of Operations

Quarter ended 30 June 2019 compared with quarter ended 31 March 2019

South Africa region

South Deep Project

Regrettably, on 2 June 2019 a seismic related face ejection resulted in fatally injuring Mrs. Maria Ramela. In conjunction with the DMR, the mine has conducted investigations into the accident in order to implement measures to reduce the risk of similar events reoccurring. Face support (mesh) has been implemented as an immediate measure.

The mine continued its recovery after the December quarter 2018 industrial action and improvements process started to deliver. The mine consequently realised advances in performance measures.

Gold production increased by 67 per cent from 1,069 kilograms (34,353 ounces) in the March quarter to 1,782 kilograms (57,306 ounces) in the June quarter and production performance was in line with plan supporting production guidance for the year.

Total underground tonnes mined increased by 28 per cent from 211,600 tonnes in the March quarter to 270,100 tonnes in the June quarter. Ore tonnes mined increased by 44 per cent from 176,000 tonnes to 253,700 tonnes, while underground waste mined decreased by 54 per cent from 35,600 tonnes to 16,400 tonnes. Underground reef grade mined increased by 1 per cent from 6.24 grams per tonne to 6.29 grams per tonne due to a greater portion of mining in the higher grade proximal areas. Total gold mined from underground increased by 45 per cent from 1,099 kilograms (35,300 ounces) in the March quarter to 1,596 kilograms (51,300 ounces) in the June quarter.

Total tonnes milled increased by 9 per cent from 258,800 tonnes in the March quarter to 281,500 tonnes in the June quarter. Underground reef tonnes milled increased by 62 per cent from 166,000 tonnes in the March quarter to 269,000 tonnes in the June quarter. Reef yield increased by 4 per cent from 6.34 grams per tonne to 6.60 grams per tonne following the mining grade improvement as described above. The proportional variance between the increase in reef grade mined and reef yield, can partially be attributed to the loading and processing of previously mined ore at a higher grade than the average mined in this period.

Surface tailings material treated decreased by 98 per cent from 59,600 tonnes to 1,400 tonnes mainly due to the treatment of surface tailing material being halted to increase the backfill availability by sending tailings directly to backfill plant.

Gold recovered from underground amounted to 1,777 kilograms (57,133 ounces). In addition, 5 kilograms (174 ounces) were recovered from the treatment of surface material.

Destress mining increased by 63 per cent from 3,881 square metres in the March quarter to 6,310 square metres in the June quarter. This improvement was due to enhanced operational performance and an increase in the number of destress cuts available. Application of shotcrete in the destress cuts has improved conditions and in time will reduce support rehabilitation requirements.

Longhole stoping increased by 34 per cent from 102,500 tonnes to 137,500 tonnes. Development decreased by 1 per cent from 1,139 metres in the March quarter to 1,133 metres in the June quarter. Development in the current mine areas decreased by 43 per cent from 458 metres in the March quarter to 261 metres in the June quarter due to mining resources being allocated to develop the North of Wrench, in line with the increased focus on North of Wrench and the need to access new cuts required to sustain production in 2020 and beyond. Development North of Wrench increased by 28 per cent from 681 metres in the March quarter to 872 metres in the June quarter in line with the strategy to build up North of Wrench.

The current mine contributed 45 per cent of the total ore tonnes in the June quarter compared with 55 per cent of the total ore tonnes in the March quarter. The North of Wrench contributed 55 per cent of the total ore tonnes in the June quarter compared with 45 per cent in the March quarter. The tonnage contribution from longhole stoping increased by 3 per cent from 48 per cent in the March quarter to 51 per cent in the June quarter.

Cost of sales before amortisation and depreciation increased by 27 per cent from R734 million (US$52 million) to R935 million (US$65 million). Cost of sales before gold inventory change and amortisation and depreciation increased by 14 per cent from R788 million (US$56 million) in the March quarter to R898 million (US$62 million) in the June quarter mainly due to higher salaries and wages due to annual increases awarded in March 2019, increased utilities and contractors and consumable costs in the June quarter due to increased production. This was compounded by a gold-inprocess charge to cost of R37 million (US$3 million) in the June quarter compared with a credit of R54 million (US$4 million) in the March quarter. The net gold-in-process movement was R91 million (US$7 million).

Capital expenditure decreased by 9 per cent from R131 million (US$9 million) in the March quarter to R119 million (US$8 million) in the June quarter.

Sustaining capital expenditure decreased by 9 per cent from R131 million (US$9 million) in the March quarter to R119 million (US$8 million) in the June quarter due to a decrease in major component and rebuild costs for the mine's fleet. No growth capital expenditure was incurred for the March and June 2019 quarters in line with the operational plan.

All-in sustaining costs and all-in costs decreased by 34 per cent from R900,408 per kilogram (US$1,992 per ounce) in the March quarter to R590,492 per kilogram (US$1,275 per ounce) in the June quarter mainly due to higher gold sold, lower sustaining capital expenditure, partially offset by higher cost of sales before amortisation and depreciation.

West Africa region

Ghana

Tarkwa

Gold production decreased by 2 per cent from 136,700 ounces in the March quarter to 134,200 ounces in the June quarter mainly due lower head grade processed.

Total tonnes mined, including capital waste stripping, decreased by 6 per cent from 25.0 million tonnes in the March quarter to 23.4 million tonnes in the June quarter. Ore tonnes mined decreased by 2 per cent from 4.1 million tonnes to 4.0 million tonnes.

Operational waste tonnes mined increased by 28 per cent from 9.0 million tonnes to 11.5 million tonnes due to higher operational waste stripping required to expose ore in line with the mining plan. Capital waste tonnes mined decreased by 32 per cent from 11.9 million tonnes to 7.9 million tonnes. Mined grade increased by 1 per cent from 1.24 grams per tonne to 1.25 grams per tonne. Gold mined decreased by 2 per cent from 161,900 ounces to 159,000 ounces as a result of decreased ore tonnes mined. The strip ratio decreased from 5.2 to 4.9.

The CIL plant throughput was similar at 3.4 million tonnes. Yield decreased by 2 per cent from 1.23 grams per tonne to 1.21 grams per tonne mainly due to lower grade feed.

Cost of sales before amortisation and depreciation increased by 23 per cent from US$71 million to US$87 million mainly due to 28 per cent higher operational tonnes mined and a lower gold-in-process credit to cost of US$5 million in the June quarter compared with a credit to cost of US$9 million in the March quarter.

Capital expenditure decreased by 23 per cent from US$39 million to US$30 million due to lower capital waste stripping.

All-in sustaining costs and total all-in cost increased by 4 per cent from US$922 per ounce in the March quarter to US$958 per ounce in the June quarter due to lower gold sold and higher cost of sales before amortisation and depreciation partially offset by lower capital expenditure.

Damang

Gold production decreased by 5 per cent from 57,200 ounces in the March quarter to 54,600 ounces in the June quarter mainly due to lower yield.

Total tonnes mined, including capital stripping, decreased by 3 per cent from 8.7 million tonnes in the March quarter to 8.4 million tonnes in the June quarter due to the reduction in the planned tonnes for 2019, in line with the mining sequence, as the Amoanda pit comes to completion.

Ore tonnes mined, decreased by 1 per cent from 1.36 million tonnes in the March quarter to 1.34 million tonnes in the June quarter. Total waste tonnes mined decreased by 3 per cent from 7.3 million tonnes to 7.1 million tonnes due to the Amoanda pit getting deeper and the associated operational constraints, grade control drilling in the Saddle pit and less capital waste mined at DPCB in line with the plan. Capital waste tonnes included in total waste tonnes decreased by 2 per cent from 5.9 million tonnes to 5.8 million tonnes in line with the operational plan. Operational waste tonnes mined decreased by 7 per cent from 1.4 million tonnes to 1.3 million tonnes due to the Amoanda pit getting deeper and the associated operational constraints and grade control drilling in the Saddle pit. In the June quarter total tonnes mined at Amoanda pit were 0.8 million tonnes, at Saddle 1.3 million tonnes and at DPCB 6.3 million tonnes.

Head grade mined decreased by 1 per cent from 1.59 grams per tonne to 1.57 grams per tonne due to lower grade material mined from Saddle pit, in accordance with the mining sequence. Gold mined decreased by 3 per cent from 69,400 ounces to 67,500 ounces. The strip ratio decreased from 5.4 to 5.3 due to lower strip ratio areas at the Saddle and Amoanda pits.

Tonnes processed increased by 2 per cent from 1.15 million tonnes in the March quarter to 1.17 million tonnes in the June quarter due to higher plant overall equipment effectiveness. Yield decreased by 5 per cent from 1.54 grams per tonne to 1.46 grams per tonne due to lower feed grade. In the June quarter, tonnes milled were sourced as follows: 0.96 million tonnes at 1.68 grams per tonne from the pits and 0.21 million tonnes at 1.53 grams per tonne from stockpiles. This compared with 0.96 million tonnes at 1.65 grams per tonne from the pits and 0.19 million tonnes at 2.07 grams per tonne from high grade stockpiles in the March quarter.

Cost of sales before amortisation and depreciation increased by 7 per cent from US$28 million in the March quarter to US$30 million in the June quarter, mainly due to a lower gold-in-process credit.

Capital expenditure was similar at US$25 million.

Sustaining capital expenditure was similar at US$2 million. Non-sustaining capital expenditure was similar at US$23 million.

All-in sustaining costs increased by 6 per cent from US$633 per ounce in the March quarter to US$673 per ounce in the June quarter mainly due to lower gold sold and higher cost of sales before amortisation and depreciation.

All-in costs increased by 7 per cent from US$1,027 per ounce in the March quarter to US$1,097 per ounce in the June quarter due to the same reasons above.

At the end of the June 2019 quarter, and 30 months into the Damang Reinvestment Project (DRP), total material mined amounted to 103 million tonnes, 19 per cent ahead of the project schedule. Gold produced during the same period was 436,185 ounces, 27 per cent above the DRP ounces of 344,332. The project capital spent to date is US$320 million versus the original DRP budget to date of US$275 million, largely driven by the additional capital waste tonnes mined.

Asanko (Equity accounted Joint Venture)

Gold production increased by 3 per cent from 60,400 ounces in the March quarter to 62,100 ounces in the June quarter.

Total tonnes mined increased by 10 per cent from 8.1 million tonnes in the March quarter to 8.9 million tonnes in the June quarter. Ore tonnes mined decreased by 27 per cent from 1.5 million tonnes in the March quarter to 1.1 million tonnes in the June quarter. Head grade mined increased by 8 per cent from 1.43 grams per tonne in the March quarter to 1.55 grams per tonne in the June quarter.

Total waste tonnes mined increased by 18 per cent from 6.6 million tonnes in the March quarter to 7.8 million tonnes in the June quarter. The strip ratio increased by 68 per cent from 4.4 in the March quarter to 7.4 in the June quarter. The increase in strip ratio and waste tonnes mined in the June quarter was due to the final stages of waste mining from the Cut 2 pushback at Nkran, which is expected to be complete in the September quarter 2019.

The plant throughput increased by 17 per cent from 1.2 million tonnes to 1.4 million tonnes. Yield decreased by 5 per cent from 1.47 grams per tonne in the March quarter to 1.39 grams per tonne in the June quarter. In the June quarter total tonnes processed exceeded the ore tonnes mined and therefore 12 per cent of the total tonnes processed (167,000 tonnes) were fed from the ROM stockpile at an average grade of 0.9 grams per tonne resulting in the 5 per cent yield decrease. In the March quarter, the majority of the tonnes processed were fed from the ore tonnes mined.

Gold Fields' 45 per cent share of gold produced and gold sold amounted to 27,900 ounces and 29,900 ounces for the June quarter, respectively and 27,200 ounces and 24,000 ounces for the March quarter.

Cost of sales before amortisation and depreciation increased by 2 per cent from US$46 million in the March quarter to US$47 million in the June quarter.

Capital expenditure increased from US$8 million in the March quarter to US$28 million in the June quarter and included deferred stripping of US$3 million and US$20 million, respectively. Capital expenditure increased by US$20 million due to an increase in deferred stripping as a result of the Cut 2 pushback at Nkran and US$4 million spent on TSF lift 4.

Sustaining capital increased from US$4 million in the March quarter to US$24 million in the June quarter. Non-sustaining capital was similar at US$4 million.

Gold Fields share of cost of sales before amortisation and depreciation was similar at US$21 million. Gold Fields share of sustaining capital increased by 450 per cent from US$2 million in the March quarter to US$11 million in the June quarter. Gold Fields share of non-sustaining capital was similar at US$2 million.

All-in sustaining costs increased by 5 per cent from US$1,123 per ounce in the March quarter to US$1,180 per ounce in the June quarter mainly due to higher sustaining capital expenditure and higher cost of sales before amortisation and depreciation, partially offset by higher gold sold.

All-in costs increased by 2 per cent from US$1,219 per ounce in the March quarter to US$1,247 per ounce in the June quarter due to the same reasons above.

South America region

Peru

Cerro Corona

* Average daily spot price for the period used to calculate total equivalent gold ounces produced.

Gold production increased by 3 per cent from 39,900 ounces in the March quarter to 40,900 ounces in the June quarter due to higher grades mined and processed, partially offset by lower recovery. Copper production increased by 8 per cent from 7,764 tonnes to 8,357 tonnes due to higher grade mined and processed. Equivalent gold production increased by 5 per cent from 76,800 ounces to 80,300 ounces mainly due to higher grade processed in line with the mining sequence.

Gold head grade increased by 8 per cent from 1.13 grams per tonne to 1.22 grams per tonne and gold recoveries decreased from 67.3 per cent to 65.7 per cent, in line with the mining sequence. Copper head grade increased by 9 per cent from 0.54 per cent to 0.59 per cent in line with the mining sequence and copper recoveries increased from 89.0 per cent to 89.5 per cent. As a result of the above, gold yield increased by 5 per cent from 0.76 grams per tonne to 0.80 grams per tonne. Copper yield increased by 10 per cent from 0.48 per cent to 0.53 per cent.

In the June quarter, concentrate with a payable content of 39,901 ounces of gold was sold at an average price of US$1,292 per ounce and 8,017 tonnes of copper was sold at an average price of US$5,289 per tonne, net of treatment and refining charges. This compared with 41,413 ounces of gold that was sold at an average price of US$1,296 per ounce and 7,852 tonnes of copper that was sold at an average price of US$5,604 per tonne, net of treatment and refining charges, in the March quarter.

Total tonnes mined increased by 1 per cent from 5.37 million tonnes in the March quarter to 5.45 million tonnes in the June quarter mainly due to higher waste mined in line with the mining sequence and higher efficiency of the new mining contractor. Ore mined decreased by 8 per cent from 1.92 million tonnes to 1.76 million tonnes. Operational waste tonnes mined increased by 7 per cent from 3.45 million tonnes to 3.69 million tonnes in line with the mining plan. The strip ratio increased from 1.80 to 2.10.

Ore processed decreased by 3 per cent from 1.70 million tonnes to 1.65 million tonnes due to lower plant throughput in the June quarter (817 tonnes per hour in the June quarter versus 823 tonnes per hour in the March quarter), due to ore characteristics. Plant utilisation decreased from 94.4 per cent in the March quarter to 92.6 per cent in the June quarter due to the planned plant maintenance schedule.

Cost of sales before amortisation and depreciation decreased by 7 per cent from US$42 million to US$39 million mainly due to a US$1 million gold-in-process credit to cost in the June quarter compared with US$1 million charge to cost in the March quarter.

Capital expenditure increased by 43 per cent from US$7 million to US$10 million due to an increase in construction activities at the tailings dam and waste storage facilities after the rainy season.

All-in cost per gold ounce increased by 88 per cent from US$203 per ounce in the March quarter to US$381 per ounce in the June quarter mainly due to higher capital expenditure, lower by-product credit due to lower copper price received and lower gold sold, partially offset by lower cost of sales before amortisation and depreciation. All-in cost per equivalent ounce increased by 6 per cent from US$677 per equivalent ounce to US$719 per equivalent ounce due to higher capital expenditure and lower equivalent ounces sold, partially offset by lower cost of sales before amortisation and depreciation.

Australia region

St Ives

Gold production, decreased by 18 per cent from 103,000 ounces in the March quarter to 84,600 ounces in the June quarter due to lower grade of ore processed.

Total ore tonnes mined increased by 18 per cent from 1.1 million tonnes in the March quarter to 1.3 million tonnes in the June quarter.

Total underground ore tonnes mined decreased by 7 per cent from 334,500 tonnes in the March quarter to 311,200 tonnes in the June quarter. Gold mined from underground operations decreased by 23 per cent from 47,500 ounces in the March quarter to 36,500 ounces in the June quarter.

At the Hamlet underground operation, mining of the main ore body is decelerating with mine activities to be concluded by the end of 2019. Simultaneously the Hamlet North ore body is being developed with first ore expected during the March quarter 2020. Ore tonnes mined at Hamlet decreased by 35 per cent from 25,700 tonnes in the March quarter to 16,700 tonnes in the June quarter. Head grade decreased by 5 per cent from 3.09 grams per tonne to 2.93 grams per tonne due to mine sequence and resultant gold mined decreased by 38 per cent from 2,600 ounces to 1,600 ounces.

Ore tonnes mined at the Invincible underground complex in the June quarter at 243,900 tonnes was similar to the 244,800 tonnes mined in the March quarter. Head grade mined decreased by 26 per cent from 5.05 grams per tonne in the June quarter to 3.76 grams per tonne in the March quarter. In the June quarter ore was sourced from lower grade Drake and Fenton development zones compared with ore that was sourced from high grade stopes in the Drake zone in the March quarter. During the second half of 2019 ore will be sourced from high grade Fenton zone stopes. Resultant gold mined from Invincible underground decreased by 26 per cent from 39,700 ounces in the March quarter to 29,500 ounces in the June quarter.

Remnant mining of lower levels at the Cave Rocks underground mine continued in the June quarter, with 50,600 tonnes mined at 3.35 grams per tonne yielding 5,400 ounces, compared to 64,000 tonnes mined at 2.53 grams per tonne yielding 5,200 ounces in the March quarter. The crown pillar extraction of Cave Rocks is planned for the second half of 2019, and is forecast to deliver 203,000 tonnes of ore at 3.5 grams per tonne yielding 22,800 ounces.

Total tonnes mined at the open pits, decreased by 6 per cent from 3.6 million tonnes in the March quarter to 3.4 million tonnes in the June quarter.

At the open pit operations, ore tonnes mined increased by 25 per cent from 0.8 million tonnes in the March quarter to 1.0 million tonnes in the June quarter. Ore was sourced from Neptune and Invincible open pits in the June quarter.

Grade mined from open pits, decreased by 3 per cent from 1.73 grams per tonne to 1.67 grams per tonne reflecting the lower grade ore mined from Neptune pit in the June quarter. Gold mined from the open pits increased by 24 per cent from 41,800 ounces to 51,900 ounces. In the June quarter, tonnes mined were sourced as follows: 0.6 million tonnes at 1.32 grams per tonne from Neptune and 0.4 million tonnes at 2.16 grams per tonne from Invincible. This compared with 0.5 million tonnes at 1.48 grams per tonne from Neptune and 0.3 million tonnes at 2.09 grams per tonne from Invincible in the March quarter.

Operational waste tonnes mined decreased by 27 per cent from 1.1 million tonnes in the March quarter to 0.8 million tonnes in the June quarter and capital waste tonnes mined decreased by 6 per cent from 1.7 million tonnes to 1.6 million tonnes with lower waste mining at Neptune stage 5. The strip ratio decreased from 3.8 to 2.5 with lower waste mining at Neptune.

Ounces mined at the total St Ives complex decreased by 1 per cent from 89,300 ounces in the March quarter to 88,300 ounces in the June quarter. At the end of the June quarter, stockpiled Neptune high-grade oxide material amounted to 26,300 ounces (663,200 tonnes at 1.23 grams per tonne), Invincible amounted to 13,500 ounces (191,900 tonnes at 2.91 grams per tonne) and A5 amounted to 7,900 ounces (174,000 tonnes at 1.46 grams per tonne). This compared with Neptune high-grade oxide material that amounted to 27,300 ounces (563,000 tonnes at 1.51 grams per tonne), Invincible that amounted to 5,400 ounces (93,000 tonnes at 1.79 grams per tonne) and A5 that amounted to 7,800 ounces (174,000 tonnes at 1.41 grams per tonne) at the end of the March quarter. Currently, Lefroy mill can only sustain a 25 per cent oxide material blend. The excess Neptune oxide material is stockpiled and fed to the mill so as to maintain the optimum blend.

Throughput at the Lefroy mill increased by 5 per cent from 1.10 million tonnes in the March quarter to 1.15 million tonnes in the June quarter. Yield decreased by 22 per cent from 2.92 grams per tonne to 2.28 grams per tonne due to an increased proportion of lower grade stockpiled material processed.

Cost of sales before amortisation and depreciation was similar at A$87 million (US$62 million). The gold inventory charge to cost of A$7 million (US$5 million) in the June quarter compared with a charge to cost of A$13 million (US$10 million) in the March quarter.

Capital expenditure increased by 6 per cent from A$35 million (US$25 million) to A$37 million (US$26 million) due to higher infrastructure spend at the Invincible underground mine in the June quarter.

All-in cost increased by 6 per cent from A$1,387 per ounce (US$988 per ounce) in the March quarter to A$1,468 per ounce (US$1,029 per ounce) in the June quarter due to higher capital expenditure and lower gold sold.

Agnew

Gold production decreased by 1 per cent from 56,900 ounces in the March quarter to 56,400 ounces in the June quarter mainly due to lower grades processed.

Ore mined from underground increased by 3 per cent from 291,700 tonnes in the March quarter to 299,100 tonnes in the June quarter. Head grade mined increased by 6 per cent from 6.04 grams per tonnes to 6.38 grams per tonne due to higher grade stopes mined in the Bengal area at Waroonga. Gold mined increased by 8 per cent from 56,600 ounces in the March quarter to 61,300 ounces in the June quarter. In the June quarter tonnes mined were sourced as follows: 168,200 tonnes at 8.2 grams per tonne from Waroonga and 130,900 tonnes at 4.0 grams per tonne from New Holland. This compared with 160,200 tonnes at 7.4 grams per tonne from Waroonga and 131,500 tonnes at 4.4 grams per tonne from New Holland in the March quarter.

Tonnes processed increased by 8 per cent from 281,000 tonnes in the March quarter to 304,600 tonnes in the June quarter. The combined yield decreased by 9 per cent from 6.30 grams per tonne to 5.75 grams per tonne due to high grade ore mined at Waroonga in June 2019, only processed late in July 2019.

Cost of sales before amortisation and depreciation decreased by 5 per cent from A$59 million (US$42 million) in the March quarter to A$56 million (US$39 million) in the June quarter. The decrease was due to a gold inventory credit to costs of A$2 million (US$2 million) in the June quarter compared with a charge of A$5 million (US$4 million) in the March quarter, partially offset by higher mining cost of A$2 million (US$1 million) due to increased ore mined at Waroonga and increased processing cost of A$1 million (US$1 million) due to increased ore processed in the June quarter.

Capital expenditure decreased by 8 per cent from A$40 million (US$29 million) to A$37 million (US$26 million) mainly due to lower expenditure on the new accommodation village in the June quarter amounting to A$13 million (US$9 million) compared with A$18 million (US$13 million) in the March quarter.

All-in cost decreased by 1 per cent from A$1,760 per ounce (US$1,253 per ounce) in the March quarter to A$1,747 per ounce (US$1,225 per ounce) in the June quarter due to lower cost of sales before amortisation and depreciation and lower capital expenditure, partially offset by lower gold sold.

Granny Smith

Gold production decreased by 7 per cent from 69,300 ounces in the March quarter to 64,700 ounces in the June quarter mainly due to lower grades processed.

Ore mined from underground increased by 7 per cent from 398,400 tonnes to 425,600 tonnes due to increased ore development in the June quarter resulting in increased flexibility and availability of production stoping fronts. Head grade mined decreased by 10 per cent from 5.76 grams per tonne in the March quarter to 5.16 grams per tonne in the June quarter in line with the mining sequence. As a result, overall ounces mined decreased by 4 per cent from 73,800 ounces in the March quarter to 70,700 ounces in the June quarter.

Tonnes processed increased by 5 per cent from 398,100 tonnes in the March quarter to 419,900 tonnes in the June quarter due to increased ore availability. The yield decreased by 12 per cent from 5.42 grams per tonne to 4.79 grams per tonne due to lower head grade mined.

Cost of sales before amortisation and depreciation decreased by 4 per cent from A$55 million (US$39 million) in the March quarter to A$53 million (US$38 million) in the June quarter.

Capital expenditure increased by 19 per cent from A$21 million (US$15 million) in the March quarter to A$25 million (US$17 million) in the June quarter due to expenditure on underground ventilation and paste fill infrastructure of A$2 million (US$2 million), and increased exploration expenditure of A$2 million (US$1 million).

All-in cost increased by 11 per cent from A$1,204 per ounce (US$857 per ounce) in the March quarter to A$1,335 per ounce (US$936 per ounce) in the June quarter due to increased capital expenditure and lower gold sold, partially offset by lower cost of sales before amortisation and depreciation.

Gruyere

First gold was poured over the weekend of 29 and 30 June 2019. The gold was produced from the carbon-in-leach (CIL) and elution circuits.

With the delivery of first gold, the focus then turned to commissioning of the final components of the process plant, particularly the gravity gold circuit and ball mill, which were completed in July 2019. During the initial stages of ramp-up, lower grade stockpiled ore is being processed to reduce gold losses associated with lower recoveries anticipated as the plant operations are stabilised.

Commencement of the operation of the ball mill marked the start of an anticipated ramp-up period of six to seven months. Gruyere is expected to attain commercial production mid-way through the ramp-up period.

The final forecast capital (FFC) cost estimate remains at A$621 million (level of accuracy range + 2 per cent/-2 per cent) as reported by the joint venture partners on 30 July 2018.

In accordance with the Joint Venture agreement entered into at the time of the acquisition, Gold Fields will fund up to 10 per cent of costs overruns, excluding scope changes and force majeure costs. This translates to approximately A$51 million. Consequently, Gold Fields share of the FFC of A$621 million is A$337 million.

Mining activity continues to schedule with 1.7 million tonnes of ore at a grade of 0.84 grams per tonne for 46,000 ounces mined in the June quarter. This compared with 0.8 million tonnes of ore at a grade of 0.76 grams per tonne for 18,600 ounces mined in the March quarter. (100 per cent basis).

This resulted in 2.5 million tonnes of ore at a grade of 0.82 grams per tonne for 64,500 ounces having been mined and stockpiled to date. (100 per cent basis).