 |
 |
Currently viewing: Australia region / Next: Corporate |
Continuing operationsAustralia regionSt Ives
Gold production increased by 1 per cent from 363,900 ounces in 2017 to 366,900 ounces in 2018. Total tonnes mined decreased by 49 per cent from 42.63 million tonnes in 2017 to 21.67 million tonnes in 2018. Gold mined decreased by 6 per cent from 438,500 ounces to 412,000 ounces. At the underground operations, ore mined increased by 90 per cent from 0.48 million tonnes in 2017 to 0.91 million tonnes in 2018 due to the commissioning of the new Invincible underground mine during 2018. The grade mined decreased by 1 per cent from 4.13 grams per tonne to 4.08 grams per tonne and contained gold mined from underground increased by 86 per cent from 64,200 ounces in 2017 to 119,400 ounces in 2018. At the open pits total ore tonnes mined decreased by 15 per cent from 3.98 million tonnes in 2017 to 3.40 million tonnes in 2018 as a result of the completion of mining activities at the Invincible open pit stage 5 in September 2018. Grade mined decreased by 8 per cent from 2.92 grams per tonne to 2.68 grams per tonne with lower grade areas of the Neptune pit mined in 2018. Contained gold mined from the open pits decreased by 22 per cent from 374,300 ounces in 2017 to 292,600 ounces in 2018. Operational waste tonnes mined decreased by 35 per cent from 9.03 million tonnes in 2017 to 5.84 million tonnes in 2018. Capital waste tonnes mined decreased by 60 per cent from 29.12 million tonnes to 11.52 million tonnes. The decrease in waste tonnes mined was as a result of the pre-strip being completed at Invincible mine. The strip ratio decreased from 9.6 to 5.1. At the consolidated St Ives mine, ounces mined decreased by 6 per cent from 438,500 ounces in 2017 to 412,000 ounces in 2018. In 2018, Neptune high-grade oxide material stockpiled amounted to 47,700 ounces (763,100 tonnes at 1.94 grams per tonne), Invincible amounted to 100 ounces (2,000 tonnes at 1.94 grams per tonne) and A5 amounted to 7,900 ounces (174,000 tonnes at 1.41 grams per tonne). This compared with stockpiles of 45,600 ounces (711,000 tonnes at 1.99 grams per tonne) at Neptune, Invincible of 7,800 ounces (109 tonnes at 2.21 grams per tonne) and A5 of 7,900 ounces (174,000 tonnes at 1.46 grams per tonne). Currently, Lefroy mill can only sustain a 25 per cent oxide material blend, thus constraining the processing of Neptune ore. Throughput at the Lefroy mill increased by 1 per cent from 4.20 million tonnes in 2017 to 4.25 million tonnes in 2018. Yield decreased marginally from 2.70 grams per tonne to 2.69 grams per tonne. Gold production from the Lefroy mill increased by 1 per cent from 363,900 ounces in 2017 to 366,900 ounces in 2018. Cost of sales before amortisation and depreciation, increased by 20 per cent from A$207 million (US$159 million) in 2017 to A$249 million (US$186 million) in 2018. The higher cost of sales before amortisation and depreciation was due to increased underground mining cost as a result of increased ore tonnes mined at Invincible underground mine (A$18 million/US$14 million) and as a result of the loss of economies of scale at the open pits due to the large decrease in mining volumes as Invincible stage 5 moved to completion (completed at end of September 2018), as well as lower volumes from Neptune, increased processing maintenance cost (A$4 million/US$3 million) and a lower gold inventory credit to costs (A$20 million/US$15 million) in 2018 compared with A$38 million (US$29 million) in 2017. Capital expenditure decreased by 17 per cent from A$204 million (US$156 million) in 2017 to A$170 million (US$127 million) in 2018 mainly due to lower capital development in the open pits following completion of mining activities at Invincible open pit stage 5 (A$54 million/US$41 million), partially offset by increased capital development at the new Invincible underground mine (A$25 million/US$19 million). All-in sustaining costs and total all-in cost increased by 1 per cent from A$1,198 per ounce (US$916 per ounce) in 2017 to A$1,207 per ounce (US$902 per ounce) in 2018 due to higher cost of sales before amortisation and depreciation, partially offset by higher gold sold and lower capital expenditure. Guidance
The increase in all-in sustaining and total all-in costs is due to a forecast increase of A$59 million (US$44 million) in cost of sales before amortisation and depreciation, partially offset by a A$14 million (US$10 million) decrease in capital expenditure. The increased costs is as a result of a forecasted increase in mining costs of A$29 million (US$22 million) as underground mining activity is planned to increase from 0.9 million tonnes to 1.3 million tonnes. In addition, a drawdown of gold-in-process of A$6 million (US$5 million) is forecast for 2019 as open pit mining activity decreases. This compared with a A$20 million (US$15 million) build-up of gold-in-process in 2018. The decreased capital expenditure is due to a decrease in pre-strip, partially offset by increased underground capital development. Agnew
Gold production decreased by 1 per cent from 241,200 ounces in 2017 to 239,100 ounces in 2018. Ore mined from underground increased by 4 per cent from 1.17 million tonnes in 2017 to 1.22 million tonnes in 2018. Head grade mined decreased by 3 per cent from 6.72 grams per tonne to 6.49 grams per tonne due to lower grade from New Holland (3.96 grams per tonne in 2018 to 4.78 grams per tonne in 2017). Gold mined decreased marginally from 253,800 ounces to 253,700 ounces. At Waroonga, ore tonnes mined decreased from 633,500 tonnes in 2017 to 622,400 tonnes in 2018. Grade mined increased from 8.38 grams per tonne to 8.90 grams per tonne and gold mined increased from 170,700 ounces to 178,100 ounces. At New Holland, ore tonnes mined increased from 540,700 tonnes in 2017 to 593,400 tonnes in 2018. Grade mined decreased by 17 per cent from 4.78 grams per tonne to 3.96 grams per tonne and gold mined decreased from 83,100 ounces to 75,600 ounces. Tonnes processed decreased by 5 per cent from 1.24 million tonnes in 2017 to 1.18 million tonnes in 2018 due to a lower throughput rate in 2018 as a result of downtime to perform major repairs to the crusher. The combined yield increased by 4 per cent from 6.08 grams per tonne to 6.31 grams per tonne due to the processing of higher grade stockpiles in 2018, mined but not processed in 2017. Cost of sales before amortisation and depreciation, increased by 10 per cent from A$197 million (US$150 million) in 2017 to A$216 million (US$162 million) in 2018 mainly due to increased mining cost at Waroonga (A$8 million/US$6 million) as a result of increased ground support and paste fill and a gold-in-process charge to costs of A$2 million (US$2 million) in 2018 compared with a credit to costs of A$6 million (US$5 million) in 2017. Capital expenditure increased by 2 per cent from A$96 million (US$74 million) in 2017 to A$98 million (US$73 million) in 2018. All-in sustaining costs and total all-in cost increased by 8 per cent from A$1,276 per ounce (US$977 per ounce) in 2017 to A$1,374 per ounce (US$1,026 per ounce) in 2018 due to higher cost of sales before amortisation and depreciation, higher capital expenditure and lower gold sold. Guidance
Gold sold is forecast to decrease by 8 per cent due to a 13 per cent decrease in grade mined from 6.49 grams per tonne to 5.62 grams per tonne, due to reducing grades in the FBH area, partially offset by a 7 per cent increase in ore tonnes mined. The increased tonnes mined contributed a A$12 million (US$9 million) increase in cost of sales before amortisation and depreciation, when added to the decreased gold sales it results in an additional A$164 per ounce to all-in sustaining and total all-in costs. Granny Smith
Gold production decreased by 3 per cent from 290,300 ounces in 2017 to 280,400 ounces in 2018 due to lower grades mined and processed. Ore mined from underground increased by 4 per cent from 1.70 million tonnes to 1.76 million tonnes. Head grade mined decreased by 5 per cent from 5.50 grams per tonne in 2017 to 5.25 grams per tonne in 2018. Gold mined from underground decreased by 2 per cent from 300,700 ounces to 296,000 ounces. Tonnes processed increased by 3 per cent from 1.73 million tonnes to 1.78 million tonnes. The yield decreased by 6 per cent from 5.23 grams per tonne to 4.90 grams per tonne due to lower grades mined. Cost of sales before amortisation and depreciation, increased by 7 per cent from A$210 million (US$160 million) in 2017 to A$225 million (US$168 million) in 2018 mainly due to increased mining cost (A$15 million/US$12 million) due to the increased ore tonnes mined from the deeper zones and an 18 per cent increase in ore development in 2018. Capital expenditure decreased by 8 per cent from A$114 million (US$87 million) in 2017 to A$105 million (US$79 million) in 2018 due to the completion of the VR8 ventilation shaft in 2017. The majority of capital expenditure related to development and infrastructure at the Wallaby mine, exploration and the development of a paste plant and associated infrastructure. All-in sustaining costs and total all-in cost increased by 6 per cent from A$1,171 per ounce (US$896 per ounce) in 2017 to A$1,239 per ounce (US$925 per ounce) in 2018 mainly due to higher cost of sales before amortisation and depreciation and lower gold sold, partially offset by lower capital expenditure. Guidance
The increase in all-in sustaining and total all-in costs is due to a 20,400 ounce decrease in gold sold and a A$10 million (US$7 million) increase in mining costs. The decrease in ounces is due to a seismic event in the December 2018 quarter which impacted access to higher grade mining areas in 2019. The lower production was due to additional barrier pillars now defined in the mine plan combined with reduced mining rates in parts of the Z100 area as a consequence of localised geotechnical conditions. Mining costs increased due to greater haulage distances and the addition of paste fill as mining depth increases. Gruyere First gold remains scheduled for the June 2019 quarter, in line with the guidance issued in April 2018. 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 is A$337 million with A$246 million having been incurred up to the end of December 2018. As at end December 2018, overall project engineering and construction was 97.2 per cent and 88.7 per cent complete, respectively, with EPC construction (process plant and associated infrastructure) 85.1 per cent complete. We believe that the long-life, low-cost nature of Gruyere will improve the Gold Fields portfolio. Guidance
# Gold Fields share only |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Copyright © Gold Fields 2019 |
|
