Gold Fields

Review of Operations

Six months ended 30 June 2021 compared with six months ended 30 June 2020

Figures may not add as they are rounded independently.

South Africa region

South Deep

      June 2021   March 2021 %
Variance
 
Ore mined 000
tonnes
  399   346 15%  
Waste mined 000
tonnes
  48   39 23%  
Total tonnes 000
tonnes
  447   385 16%  
Grade mined – underground reef g/t   6.21   5.63 10%  
Grade mined – underground total g/t   5.54   5.06 9%  
  kg   2,477   1,948 27%  
Gold mined 000’oz   79.7   62.6 27%  
Destress m2   11,140   12,032 (7)%  
Development m   1,333   1,086 23%  
Secondary support m   3,560   2,821 26%  
Backfill m3   77,959   42,803 82%  
Tonnes milled – underground reef 000
tonnes
  389   362 7%  
Tonnes milled – underground waste 000
tonnes
  31   26 19%  
Tonnes milled – surface 000
tonnes
  347   318 9%  
Total tonnes milled 000
tonnes
  766   707 8%  
Yield – underground reef g/t   5.36   5.03 7%  
Surface yield g/t   0.09   0.11 (18)%  
Total yield g/t   2.76   2.63 5%  
  kg   2,112   1,858 14%  
Gold produced 000’oz   67.9   59.7 14%  
  kg   2,089   1,778 17%  
Gold sold 000’oz   67.2   57.2 17%  
  R/kg   615,178   667,614 (8)%  
AISC US$/oz   1,350   1,388 (3)%  
  R/kg   658,180   694,685 (5)%  
AIC US$/oz   1,443   1,444 –%  
  Rm   166.1   124.0 34%  
Sustaining capital expenditure US$m   11.7   8.3 41%  
  Rm   89.9   48.1 87%  
Non-sustaining capital expenditure US$m   6.3   3.2 97%  
  Rm   256.0   172.1 49%  
Total capital expenditure US$m   18.0   11.5 57%  

South Deep production improved significantly in Q2 following lower than expected production output in Q1 which was largely due to the second wave of the COVID-19 pandemic.

Gold production increased by 14% to 2,112kg (67,900oz) in the June quarter from 1,858kg (59,700oz) in the March quarter as a result of higher tonnes mined and milled and improved underground yield. Gold mined increased by 27% to 2,477kg (79,700oz) in the June quarter from 1,948kg (62,600oz) in the March quarter due to the increase in stoping volumes and grade.

Reef yield increased by 7% to 5.36g/t in the June quarter from 5.03g/t in the March quarter in line with the increase in broken stoping grade.

Total underground tonnes milled increased by 8% to 420kt in the June quarter from 388kt in the March quarter as a result of the increase in volumes mined from stopes and destress. Surface ore tonnes milled increased by 9% to 347kt in the June quarter from 318kt in the March quarter in line with increased backfill requirements as more stopes become available for backfilling.

Whilst destress decreased by 7% to 11,140m2 in the June quarter from 12,032m2 in the March quarter due to ventilation and seismicity related delays, resources were re-directed towards crucial development which resulted in a marked increase of 23% to 1,333 metres from 1,086 metres for the same period.

Secondary support increased by 26% to 3,560 metres in the June quarter from 2,821 metres in the March quarter which is in line with increased development, while backfill also increased quarter-on-quarter by 82% to 77,959m3 in the June quarter from 42,803m3 in the March quarter due to the increase in stope availability in line with increased stoping volumes.

All-in cost decreased by 5% to R658,180/kg (US$1,443/oz) in the June quarter from R694,685/kg (US$1,444/oz) in the March quarter mainly driven by an increase in gold sold in the current quarter compared to the March quarter, partially offset by an increase in capital and operational expenditure (annual salary increases and Eskom winter tariffs) in the June quarter.

Sustaining capital expenditure increased by 34% to R166.1m (US$11.7m) in the June quarter from R124.0m (US$8.3m) in the March quarter mainly due to an increase in major component replacement infrastructure (winder ropes and conveyances delivered in the June quarter) and an increase in the refurbishment of CAT 1 equipment.

Non-sustaining capital expenditure increased by 87% to R89.9m (US$6.3m) in the June quarter from R48.1m (US$3.2m) in the March quarter due to increased expenditure on new mine development and infrastructure activities.

West Africa region

Ghana
Tarkwa

      June 2021   March 2021 %
Variance
 
Ore mined 000
tonnes
  2,772   2,405 15%  
Waste (Capital) 000
tonnes
  15,353   12,859 19%  
Waste (Operational) 000
tonnes
  6,869   6,132 12%  
Total waste mined 000
tonnes
  22,222   18,991 17%  
Total tonnes mined 000
tonnes
  24,994   21,396 17%  
Strip ratio waste/ore   8.0   7.9 1%  
Grade mined g/t   1.41   1.46 (3)%  
Gold mined 000’oz   125.2   112.6 11%  
Tonnes milled 000
tonnes
  3,546   3,436 3%  
Yield g/t   1.18   1.11 6%  
Gold produced 000’oz   134.4   122.5 10%  
Gold sold 000’oz   134.4   122.5 10%  
AISC US$/oz   1,216   1,190 2%  
AIC US$/oz   1,216   1,190 2%  
Sustaining capital expenditure US$m   57.0   50.7 12%  
Non-sustaining expenditure US$m     –%  
Total capital expenditure US$m   57.0   50.7 12%  

Gold production increased by 10% to 134,400oz in the June quarter from 122,500oz in the March quarter due to higher milled tonnes and yield. Yield increased by 6% to 1.18g/t in the June quarter from 1.11g/t in the March quarter due to higher grade ex-pit ore tonnes mined and processed. In the June quarter, 0.9Mt stockpiles at 0.76g/t were processed compared with 1.4Mt stockpiles at 0.74g/t in the March quarter.

Total tonnes mined, including capital waste stripping, increased by 17% to 25.0Mt in the June quarter from 21.4Mt in the March quarter mainly due to overall improved equipment availabilities. Ore mined increased by 15% to 2.8Mt in the June quarter from 2.4Mt in the March quarter. Capital waste increased by 19% to 15.4Mt in the June quarter from 12.9Mt in the March quarter due to improved equipment availabilities and the commencement of Kobada waste stripping. Operational waste increased by 12% to 6.9Mt tonnes in the June quarter from 6.1Mt in the March quarter.

All-in cost increased by 2% to US$1,216/oz in the June quarter from US$1,190/oz in the March quarter due to higher cost of sales before amortisation and depreciation and higher capital expenditure, partially offset by higher gold sold.

Capital expenditure increased by 12% to US$57.0m in the June quarter from US$50.7m in the March quarter due to higher capital waste expenditure as a result of higher mining unit rates, higher capital waste tonnes mined and higher tailings storage facility construction cost.

Damang

      June 2021   March 2021 %
Variance
 
Ore mined 000
tonnes
  2,207   2,071 7%  
Waste (Capital) 000
tonnes
    –%  
Waste (Operational) 000
tonnes
  3,477   4,050 (14)%  
Total waste mined 000
tonnes
  3,477   4,050 (14)%  
Total tonnes mined 000
tonnes
  5,684   6,121 (7)%  
Strip ratio waste/ore   1.58   1.96 (19)%  
Grade mined g/t   1.53   1.63 (6)%  
Gold mined 000’oz   108.2   108.2 –%  
Tonnes milled 000
tonnes
  1,170   1,183 (1)%  
Yield g/t   1.64   1.88 (13)%  
Gold produced 000’oz   61.8   71.7 (14)%  
Gold sold 000’oz   61.8   71.7 (14)%  
AISC US$/oz   778   733 6%  
AIC US$/oz   833   791 5%  
Sustaining capital expenditure US$m   3.3   2.6 27%  
Non-sustaining expenditure US$m   1.7   2.5 (32)%  
Total capital expenditure US$m   5.0   5.1 (2)%  

Gold production decreased by 14% to 61,800oz in the June quarter from 71,700oz in the March quarter mainly due to lower yield. Yield decreased by 13% to 1.64g/t in the June quarter from 1.88g/t in the March quarter. A significant portion of the ore mined was from areas of relatively scattered mineralisation.

Total tonnes mined decreased by 7% to 5.7Mt in the June quarter from 6.1Mt in the March quarter in line with the plan. Ore tonnes mined increased by 7% to 2.2Mt in the June quarter from 2.1Mt in the March quarter, while operational waste tonnes mined decreased by 14% to 3.5Mt in the June quarter from 4.1Mt in the March quarter. Mined grade decreased by 6% to 1.53g/t in the June quarter from 1.63g/t in the March quarter due to mining through the scattered mineralisation of the dolerite intrusive.

All-in cost increased by 5% to US$833/oz in the June quarter from US$791/oz in the March quarter mainly due to lower ounces sold, partially offset by lower cost of sales before amortisation and depreciation.

Sustaining capital expenditure increased by 27% to US$3.3m in the June quarter from US$2.6m in the March quarter due to timing of expenditure. Non-sustaining capital expenditure decreased by 32% to US$1.7m in the June quarter from US$2.5m in the March quarter due to timing of expenditure incurred on the Stage 3 construction of the Far East Tailings Storage Facility (FETSF).

Asanko (Equity accounted Joint Venture)
All figures in table on a 100% basis

      June 2021   March 2021 %
Variance
 
Ore mined 000
tonnes
  1,333   1,841 (28)%  
Waste (Capital) 000
tonnes
  1,221   258 373%  
Waste (Operational) 000
tonnes
  7,852   9,294 (16)%  
Total waste mined 000
tonnes
  9,073   9,552 (5)%  
Total tonnes mined 000
tonnes
  10,406   11,393 (9)%  
Strip ratio waste/ore   6.8   5.2 31%  
Grade mined g/t   1.23   1.30 (5)%  
Gold mined 000’oz   52.8   76.7 (31)%  
Tonnes milled 000
tonnes
  1,475   1,444 2%  
Yield g/t   1.06   1.29 (18)%  
Gold produced 000’oz   50.4   60.0 (16)%  
Gold sold 000’oz   53.3   62.9 (15)%  
AISC US$/oz   1,497   1,158 29%  
AIC US$/oz   1,595   1,323 21%  
Sustaining capital expenditure US$m   6.9   3.7 86%  
Non-sustaining expenditure US$m   2.6   7.6 (66)%  
Total capital expenditure US$m   9.5   11.3 (16)%  

Gold production decreased by 16% to 50,400oz (100% basis) in the June quarter from 60,000oz (100% basis) in the March quarter mainly due to lower grade ore mined and processed. Mill feed in the June quarter was sourced primarily from Esaase and augmented with lower grade run of mine stockpiles.

Total tonnes mined decreased by 9% to 10.4Mt in the June quarter from 11.4Mt in the March quarter. Waste tonnes mined decreased by 5% to 9.1Mt in the June quarter from 9.6Mt in the March quarter. Ore tonnes mined decreased by 28% to 1.3Mt in the June quarter from 1.8Mt in the March quarter with ore tonnes sourced primarily from the Esaase pit. The focus during the June quarter was on stripping of Cut 3 at Akwasiso with ore delivery expected to resume during Q3 2021.

All-in cost increased by 21% to US$1,595/oz in the June quarter from US$1,323/oz in the March quarter due to lower gold sold and higher cost of sales before amortisation and depreciation, partially offset by lower capital expenditure.

Sustaining capital expenditure increased by 86% to US$6.9m in the June quarter from US$3.7m in the March quarter mainly due to timing of expenditure. Non-sustaining capital expenditure decreased by 66% to US$2.6m in the June quarter from US$7.6m in the March quarter due to timing of expenditure on the TSF Stage 6 raise.

South America region

Peru
Cerro Corona

      June 2021   March 2021 %
Variance
 
Ore mined 000
tonnes
  1,932   1,099 76%  
Waste mined 000
tonnes
  5,474   4,995 10%  
Total tonnes mined 000
tonnes
  7,406   6,094 22%  
Grade mined – gold g/t   0.67   0.86 (22)%  
Grade mined – copper per cent   0.40   0.48 (17)%  
Gold mined 000’oz   41.8   30.5 37%  
Copper mined tonnes   7,758   5,241 48%  
Tonnes milled 000
tonnes
  1,700   1,635 4%  
Gold recovery per cent   61.72   57.40 8%  
Copper recovery per cent   86.00   85.91 —%  
Yield – gold g/t   0.43   0.40 8%  
– copper per cent   0.35   0.35 —%  
– combined eq g/t   0.97   0.88 10%  
Gold produced 000’oz   22.5   20.0 13%  
Copper produced tonnes   5,688   5,559 2%  
Total equivalent gold produced 000’
eq oz
  52.9   46.4 14%  
Total equivalent gold sold 000’
eq oz
  50.8   52.6 (3)%  
AISC US$/oz   (78)   136 (157)%  
AISC US$/ eq oz   1,014   1,067 (5)%  
AIC US$/oz   282   358 (21)%  
AIC US$/ eq oz   1,165   1,160 —%  
Sustaining capital expenditure US$m   4.9   2.2 123%  
Non-sustaining expenditure US$m   7.1   4.6 54%  
Total capital expenditure US$m   12.0   6.8 76%  

Gold equivalent production increased by 14% to 52,900oz in the June quarter from 46,400oz in the March quarter mainly due to higher tonnes milled and higher gold recovery as a result of better metallurgical conditions.

Total tonnes mined increased by 22% to 7.4Mt in the June quarter from 6.1Mt in the March quarter mainly due to an increase in ore mined of 76% to 1.9Mt in the June quarter from 1.1Mt in the March quarter and an increase in waste mined by 10% to 5.5Mt in the June quarter from 5.0Mt in the March quarter. This is in line with the waste recovery plan implemented at the end of 2020, through the deployment of additional mining fleet and equipment. As previously reported the March quarter was also impacted by an abnormally high rainy season and the 2nd wave of COVID-19.

Gold and copper grades mined decreased by 22% and 17% respectively, in the June quarter as ore mined was sourced from the lower grade western section of the pit in line with the revised mining sequence following the slope instability issues in the eastern section of the pit requiring stabilisation of the wall.

Gold yield increased by 8% to 0.43g/t in the June quarter from 0.40g/t in the March quarter. This is mainly due to an increase in gold grade processed and recovery. Copper yield remained similar at 0.35%. Lower volumes of low grade stockpiles were also added to the mill during the June quarter compared to the March quarter. In the June quarter, 302kt of stockpiles at 0.49g/t were processed compared with 668kt of stockpiles at 0.50g/t in the March quarter.

All-in cost per gold ounce decreased by 21% to US$282/oz in the June quarter from US$358/oz in the March quarter. The decrease is mainly due to a build-up of low grade ore stockpiles in the June quarter compared with a drawdown of low grade ore stockpiles in the March quarter. All-in cost per equivalent ounce increased marginally to US$1,165 per equivalent ounce in the June quarter from US$1,160 per equivalent ounce in the March quarter.

Unplanned COVID-19 related expenditure amounted to US$3.2m during the June quarter compared with US$3.0m in the March quarter.

Sustaining capital expenditure increased by 123% to US$4.9m in the June quarter from US$2.2m in the March quarter mainly due to an increase in construction activities at the tailings dam following the end of the rainy season. Non-sustaining capital expenditure increased by 54% to US$7.1m in the June quarter from US$4.6m in the March quarter due to construction activities at the Ana waste storage facility related to the expansion to 2030.

Chile

Salares Norte

Salares Norte construction progress during Q2 2021 was impacted by the second wave of COVID-19 in Chile which impacted contractors' productivity, as well as a severe snow event impacting 9 days of construction. US$59.1m was spent on the project during the quarter, comprising US$74.6m in capex, US$5.0m in exploration, a US$16.0m release of working capital, a credit of US$13.5m from the realised portion of the FX hedge and a tax payment of US$9.0m. Relocation of Chinchilla remains on hold and we continue to work with the authorities around a revised plan. The team continues to monitor the two Chinchilla that had already been relocated.

Construction progressed 7.5% during the quarter, bringing the overall construction progress at the end of June to 30.8%, slightly behind the plan 31.1%. The plant office complex progressed to 98%, two months ahead of the plan, and the plant canteen and offices became fully operational in the June quarter.

Mass earthworks were completed (including the filter plant area and the primary crusher wall) and the contractor demobilised in May 2021. Process plant construction continued with pre-cast and concrete installation at grinding, thickeners, stockpile, leaching, CIP and filter plant areas. Structural steel installation at the grinding area continues progressing with the aim of erecting the bridge crane. In June, leaching and CIP tanks erection started. The HME workshop contractor continued with the structural steel installation, completed 100% of pre-cast installation and progressed in situ concrete. The E-room was installed and significant progress achieved over the lubrication area tanks and pipe racks. The fresh water system contractor mobilised to site and commenced works in the first week of June 2021.

Pre-stripping of the Brecha Principal pit increased to 4.3Mt in the June quarter from 1.8Mt in the March quarter.

The team remains focused on exploring the greater district, with US$5.0m spent on district exploration in the June quarter compared with US$7.6m spent in the March quarter. Total metres drilled in the June quarter was 3,890 metres compared to 8,580 metres drilled in the March quarter.

Australia region

St Ives

      June 2021   March 2021 %
Variance
 
Underground              
Ore mined 000
tonnes
  512   446 15%  
Waste mined 000
tonnes
  201   183 10%  
Total tonnes mined 000
tonnes
  713   629 13%  
Grade mined g/t   4.59   5.13 (11)%  
Gold mined 000’oz   75.6   73.6 3%  
Surface              
Ore mined 000
tonnes
  233   412 (43)%  
Surface waste (Capital) 000
tonnes
  1,341   832 61%  
Surface waste (Operational) 000
tonnes
  642   627 2%  
Total waste mined 000
tonnes
  1,983   1,459 36%  
Total tonnes mined 000
tonnes
  2,216   1,871 18%  
Grade mined g/t   3.38   2.33 45%  
Gold mined 000’oz   25.4   30.8 (18)%  
Strip ratio waste/ore   8.5   3.5 143%  
Total (Underground and Surface)              
Total ore mined 000
tonnes
  745   858 (13)%  
Total grade mined g/t   4.21   3.78 11%  
Total tonnes mined 000
tonnes
  2,929   2,500 17%  
Total gold mined 000’oz   101.0   104.4 (3)%  
Tonnes milled 000
tonnes
  1,021   1,027 (1)%  
Yield – underground g/t   4.65   4.57 2%  
– surface g/t   1.77   1.57 13%  
– combined g/t   2.88   2.85 1%  
Gold produced 000’oz   94.5   94.0 1%  
Gold sold 000’oz   99.9   88.6 13%  
  A$/oz   1,382   1,329 4%  
AISC US$/oz   1,065   1,027 4%  
  A$/oz   1,423   1,370 4%  
AIC US$/oz   1,096   1,058 4%  
  A$m   36.2   22.6 60%  
Sustaining capital expenditure US$m   27.9   17.4 60%  
  A$m   4.0   3.6 11%  
Non-sustaining capital expenditure US$m   3.1   2.8 11%  
  A$m   40.2   26.2 53%  
Total capital expenditure US$m   31.0   20.2 53%  

Gold production increased by 1% to 94,500oz in the June quarter from 94,000oz in the March quarter.

Ore tonnes mined at the underground mines increased by 15% to 512,000t in the June quarter from 446,000t in the March quarter with increased ore production from the Invincible underground mine.

Grade mined from the underground mines decreased by 11% to 4.59g/t in the June quarter from 5.13g/t in the March quarter with a higher proportion of the ore produced at Invincible and some lower grade areas being mined in accordance with the planned mining sequence.

In the open pits, ore mined decreased by 43% to 233,000t in the June quarter from 412,000t in the March quarter, and capital waste tonnes mined increased by 61% to 1,341,000t in the June quarter from 832,000t in the March quarter with reduced ore mined from Neptune and a focus on pre-stripping of the new Delta Island open pit.

Surface mined grade increased by 45% to 3.38g/t in the June quarter from 2.33g/t in the March quarter with higher grade ore sourced from Neptune during the June quarter in accordance with the mine plan.

Sustaining capital expenditure increased by 60% to A$36.2m (US$27.9m) in the June quarter from A$22.6m (US$17.4m) in the March quarter due to pre-stripping cost at Delta Island open pit and increased expenditure on the new paste plant at the Invincible underground mine. Non-sustaining capital expenditure increased by 11% to A$4.0m (US$3.1m) in the June quarter from A$3.6m (US$2.8m) in the March quarter due to increased exploration drilling.

Agnew

      June
2021
  March
2021
%
Variance
 
Underground ore mined 000
tonnes
  264   258 2%  
Underground waste mined 000
tonnes
  226   239 (5)%  
Total tonnes mined 000
tonnes
  490   497 (1)%  
Grade mined – underground g/t   7.15   6.12 17%  
Gold mined 000’oz   60.6   50.8 19%  
Tonnes milled 000
tonnes
  329   297 11%  
Yield g/t   5.75   5.33 8%  
Gold produced 000’oz   60.8   50.9 19%  
Gold sold 000’oz   64.6   47.9 35%  
  A$/oz   1,441   1,645 (12)%  
AISC US$/oz   1,109   1,271 (13)%  
  A$/oz   1,603   1,812 (12)%  
AIC US$/oz   1,234   1,400 (12)%  
  A$m   22.5   13.9 62%  
Sustaining capital expenditure US$m   17.4   10.8 61%  
  A$m   10.5   8.0 31%  
Non-sustaining capital expenditure US$m   8.1   6.2 31%  
  A$m   33.0   21.9 51%  
Total capital expenditure US$m   25.5   17.0 50%  

Gold production increased by 19% to 60,800oz in the June quarter from 50,900oz in the March quarter due to increased tonnes milled and grade of ore mined and processed during the June quarter.

Mined grade increased by 17% to 7.15g/t in the June quarter from 6.12g/t in the March quarter with higher grade material mined in the Sheba area of the New Holland mine.

Tonnes milled increased by 11% to 329,000t in the June quarter from 297,000t in the March quarter due to a scheduled shutdown in the previous quarter. The mill is running at capacity with surface stockpiles processed to utilise any surplus capacity.

Yield was improved by the higher grade of ore mined, increasing by 8% to 5.75g/t in the June quarter from 5.33g/t in the March quarter.

All-in cost decreased by 12% to A$1,603/oz (US$1,234/oz) in the June quarter from A$1,812/oz (US$1,400/oz) in the March quarter due to increased gold sold, partially offset by higher cost of sales before amortisation and depreciation and increased capital expenditure.

Sustaining capital expenditure increased by 62% to A$22.5m (US$17.4m) in the June quarter from A$13.9m (US$10.8m) in the March quarter with increased mine development at Waroonga. Non-sustaining capital expenditure increased by 31% to A$10.5m (US$8.1m) in the June quarter from A$8.0m (US$6.2m) in the March quarter with work underway to replace the mill crushing circuit.

Granny Smith

      June
2021
  March
2021
%
Variance
 
Underground ore mined 000
tonnes
  433   395 10%  
Underground waste mined 000
tonnes
  260   187 39%  
Total tonnes mined 000
tonnes
  693   582 19%  
Grade mined – underground g/t   4.99   5.04 (1)%  
Gold mined 000’oz   69.4   64.1 8%  
Tonnes milled 000
tonnes
  438   385 14%  
Yield g/t   4.52   4.65 (3)%  
Gold produced 000’oz   63.6   57.6 10%  
Gold sold 000’oz   65.4   57.1 15%  
  A$/oz   1,517   1,482 2%  
AISC US$/oz   1,168   1,145 2%  
  A$/oz   1,686   1,618 4%  
AIC US$/oz   1,298   1,250 4%  
  A$m   22.6   11.1 104%  
Sustaining capital expenditure US$m   17.4   8.6 102%  
  A$m   11.0   7.8 41%  
Non-sustaining capital expenditure US$m   8.5   6.0 42%  
  A$m   33.6   18.9 78%  
Total capital expenditure US$m   25.9   14.6 77%  

Gold production increased by 10% to 63,600oz in the June quarter from 57,600oz in the March quarter due to increased tonnes mined and processed.

Underground ore mined increased by 10% to 433,000t in the June quarter from 395,000t in the March quarter in line with the plan and due to some delayed stopes during the March quarter in Z120 as the area was being advanced.

Underground waste mined increased by 39% to 260,000t in the June quarter from 187,000t in the March quarter with increased capital development at the Z110 and Z120 areas. The second decline advanced with 733 metres in the June quarter compared with 677 metres in the March quarter.

Gold mined increased by 8% to 69,400oz in the June quarter from 64,100oz in the March quarter. The increase in gold mined was mainly due to a 10% increase in underground ore mined, after addressing paste fill sequence delays in Zones 110 and 120 in the March quarter.

All-in cost increased by 4% to A$1,686/oz (US$1,298/oz) in the June quarter from A$1,618/oz (US$1,250/oz) in the March quarter due to increased capital expenditure, partially offset by increased gold sold.

Sustaining capital expenditure increased by 104% to A$22.6m (US$17.4m) in the June quarter from A$11.1m (US$8.6m) in the March quarter due to increased development at the Z100 and Z120 areas and the replacement of underground mobile equipment. Non-sustaining capital expenditure increased by 41% to A$11.0m (US$8.5m) in the June quarter from A$7.8m (US$6.0m) in the March quarter due to increased development in the Z135 area and the second decline. When completed, the second decline will provide a reduction in current congestion in the main decline and will support short interval control measures to maintain the production profile.

Gruyere

      June
2021
  March
2021
%
Variance
 
Mine physicals in table on a 100% basis              
Ore mined 000
tonnes
  2,602   1,946 34%  
Waste (Capital) 000
tonnes
  7,348   6,227 18%  
Waste (Operational) 000
tonnes
  73   99 (26)%  
Total waste mined 000
tonnes
  7,421   6,326 17%  
Total tonnes mined 000
tonnes
  10,023   8,272 21%  
Grade mined g/t   0.87   1.07 (19)%  
Gold mined 000’oz   72.7   67.2 8%  
Strip ratio waste/ore   2.9   3.3 (12)%  
Tonnes milled 000
tonnes
  1,986   2,116 (6)%  
Yield g/t   0.83   0.97 (14)%  
Gold produced 000’oz   53.1   66.2 (20)%  
Gold sold 000’oz   56.8   64.4 (12)%  
               
AISC A$/oz   1,568   1,382 13%  
  US$/oz   1,207   1,068 13%  
  A$/oz   1,601   1,385 16%  
AIC US$/oz   1,232   1,070 15%  
  A$m   13.3   14.1 (6)%  
Sustaining capital expenditure – 50% basis US$m   10.3   10.9 (6)%  
  A$m   0.9   0.1 800%  
Non-sustaining capital expenditure – 50% basis US$m   0.7   0.1 600%  
Total capital expenditure A$m   14.2   14.2 –%  
– 50% basis US$m   11.0   11.0 –%  

Gold production decreased by 20% to 53,100oz in the June quarter from 66,200oz in the March quarter due to decreased tonnes milled as well as lower grades of ore mined and processed.

Ore tonnes mined increased by 34% to 2.60Mt in the June quarter from 1.95Mt in the March quarter. Capital waste mined increased by 18% to 7.35Mt in the June quarter from 6.23Mt tonnes in the March quarter with increased pre-strip activities at Stages 2 and 3 of the pit. The June quarter production was enhanced with the availability of an additional excavator.

Grade mined decreased by 19% to 0.87g/t in the June quarter from 1.07g/t in the March quarter in accordance with the mine plan.

Tonnes milled decreased by 6% to 1.99Mt in June quarter from 2.12Mt in March quarter due to a torn mill feed conveyor belt which resulted in temporary repairs and reduced processing rates while specialist personnel and materials for the belt replacement were obtained. Following the shutdown of the milling circuit to replace the conveyor belt, a coupling on the ball mill failed. As a result, processing continued at a reduced rate, with only the Sag mill in operation until repairs were completed on 25 June.

All-in cost increased by 16% to A$1,601/oz (US$1,232/oz) in the June quarter from A$1,385/oz (US$1,070/oz) in the March quarter mainly due to a decrease in gold sold.

Sustaining capital expenditure (on a 50% basis) decreased by 6% to A$13.3m (US$10.3m) in the June quarter from A$14.1m (US$10.9m) in the March quarter with the bulk of expenditure to develop Stages 2 and 3 of the pit. Non-sustaining capital expenditure increased by 800% to A$0.9m (US$0.7m) in the June quarter from A$0.1m (US$0.1m) in the March quarter due to increased exploration drilling.