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Reviewed Results | Six months ended 30 June 2022

Commentary Review of operations

Six months ended 30 June 2022 compared with six months ended 30 June 2021

Figures may not add as they are rounded independently.

South Africa region

South Deep

    June
2022
June
2021
%
Variance
Ore mined 000
tonnes
     815.6      745.2 9 %
Waste mined 000
tonnes
       98.8        87.3 13 %
Total tonnes 000
tonnes
     914.4      832.5 10 %
Grade mined – underground reef g/t        6.17        5.94 4 %
Grade mined – underground total g/t        5.50        5.32 3 %
  kg 5,031 4,426 14 %
Gold mined 000’oz          161.7          142.3 14 %
Destress m2     – %
Development m      5,705      4,723 21 %
Secondary support m      7,051      6,382 10 %
Backfill m3      153.8      120.8 27 %
Ore milled – underground reef 000
tonnes
        761         751 1 %
Ore milled – underground waste 000
tonnes
          79           56 41 %
Ore milled – surface 000
tonnes
        659         665 (1) %
Total tonnes milled 000
tonnes
     1,499      1,472 2 %
Yield – underground reef g/t        6.59        5.20 27 %
Surface yield g/t        0.13        0.10 30 %
Total yield g/t        3.40        2.70 26 %
  kg      5,097      3,970 28 %
Gold produced 000’oz      163.9      127.6 28 %
  kg      5,097      3,868 32 %
Gold sold 000’oz      163.9      124.4 32 %
  R/kg   672,915   639,288 5 %
AISC US$/oz      1,359      1,368 (1) %
  R/kg   705,623   674,965 5 %
AIC US$/oz      1,425      1,444 (1) %
Sustaining capital expenditure Rm      811.3      290.1 180 %
  US$m        52.7        20.0 164 %
Non-sustaining capital expenditure Rm      166.7      138.0 21 %
  US$m        10.8          9.5 14 %
Total capital expenditure Rm      978.0      428.1 128 %
  US$m        63.5        29.5 115 %
Adjusted free cash flow Rm    1,131.2      406.9 178 %
  US$m        73.5        28.0 163 %

South Deep H1 2022 performance continues to show significant improvement in line with the production ramp-up to the steady state 12t gold output annually by 2025. Ore mined increased by 9% to 815,600t for the six months ended 30 June 2022 from 745,200t for the six months ended 30 June 2021 and gold produced increased by 28% to 5,097kg (163,900oz) for the six months ended 30 June 2022 from 3,970kg (127,600oz) for the six months ended 30 June 2021. These increases are a result of higher underground ore and grade mined, which is in line with the Business plan and production ramp-up.

Development increased by 21% to 5,705 metres for the six months ended 30 June 2022 from 4,723 metres for the six months ended 30 June 2021 as a result of an increase in rig productivity rates, which is in line with the production plan.

Waste mined increased by 13% to 98,800t for the six months ended 30 June 2022 from 87,300t for the six months ended 30 June 2021 as a result of an increase in capital infrastructure development and Cut-5 access development in the North of wrench mining area.

Secondary support increased by 10% to 7,051 metres for the six months ended 30 June 2022 from 6,382 metres for the six months ended 30 June 2021 in line with the increase in development metres and stoping volumes. Backfill increased by 27% to 153,800m3 for six months ended 30 June 2022 from 120,800m3 for the six months ended 30 June 2021 as a result of improved stope availability.

Underground reef yield increased by 27% to 6.59g/t for the six months ended 30 June 2022 from 5.20g/t for the six months ended 30 June 2021 due to mining higher grade reefs in line with the mine plan.

All-in cost increased by 5% to R705.623/kg (US$1,425/oz) for the six months ended 30 June 2022 from R674,965/kg (US$1,444/oz) for the six months ended 30 June 2021 mainly due to higher cost of sales before amortisation and depreciation (inflation and higher production levels), and higher capital expenditure, partially offset by higher gold sold.

Capital expenditure increased by 128% to R978m (US$64m) for the six months ended 30 June 2022 from R428m (US$30m) for the six months ended 30 June 2021 as explained below.

Sustaining capital expenditure increased by 180% to R811m (US$53m) for the six months ended 30 June 2022 from R290m (US$20m) for the six months ended 30 June 2021 mainly due to inflationary increases, equipment deliveries, Doornpoort tailings facility expansion and the commencement of the building of the solar plant. Non-sustaining capital expenditure increased by 21% to R167m (US$11m) for the six months ended 30 June 2022 from R138m (US$10m) for the six months ended 30 June 2021. This increase was mainly due to the advancement of the development on 100L and 105L with associated infrastructure.

South Deep generated adjusted free cash flow of R1,131m (US$74m) for the six months ended 30 June 2022 compared with an inflow of R407m (US$28m) for the six months ended 30 June 2021. The increase is mainly due to 32% increase in gold sold and a higher realised gold price received, partially offset by higher cost of sales before amortisation and depreciation as well as higher capital expenditure.

Guidance 2022
Guidance for 2022 provided in February remains unchanged as follows:

  • Gold produced ~ 9,600kg (308,600oz) to 9,700kg (311,800oz);
  • Capital expenditure ~ R1,930m (US$124m);
  • All-in sustaining costs ~ R715,000/kg (US$1,430/oz); and
  • Total all-in cost ~ R755,000/kg (US$1,510/oz).

West Africa region

Ghana

    June
2022
June
2021
%
Variance
Gold production 000'oz      424.0      440.1 (4) %
AISC US$/oz      1,197      1,081 11 %
AIC US$/oz      1,230      1,114 10 %
Adjusted free cash flow US$m      154.4      181.9 (15) %

Total production (100% basis for Tarkwa and Damang and 45% for Asanko) decreased by 4% to 424koz for the six months ended 30 June 2022 from 440koz for the six months ended 30 June 2021 mainly due to the planned decreased in production from Damang and Asanko on the back of lower yield at both operations.

All-in cost increased by 10% to US$1,230/oz for the six months ended 30 June 2022 from US$1,114/oz for the six months ended 30 June 2021 mainly due to lower gold sold, higher cost of sales before amortisation and depreciation and higher capital expenditure.

The region produced adjusted free cash flow (excluding Asanko) of US$154m for the six months ended 30 June 2022 compared with US$182m for the six months ended 30 June 2021. Gold Fields received US$Nil m on the redemption of preference shares from Asanko for the six months ended 30 June 2022 compared with US$5m received for the six months ended 30 June 2021. If included the total cash flow would be US$154m for the six months ended 30 June 2022 compared with US$187m for the six months ended 30 June 2021.

Tarkwa

    June
2022
June
2021
%
Variance
Ore mined 000
tonnes
     6,341      5,178 22 %
Waste (capital) 000
tonnes
   22,305    28,212 (21) %
Waste (operational) 000
tonnes
   14,714    13,001 13 %
Total waste mined 000
tonnes
   37,019    41,213 (10) %
Total tonnes mined 000
tonnes
   43,360    46,391 (7) %
Grade mined g/t        1.14        1.43 (20) %
Gold mined 000’oz      232.6      237.8 (2) %
Strip ratio waste/ore          5.8          8.0 (28) %
Tonnes milled 000
tonnes
     6,966      6,982 – %
Yield g/t        1.15        1.14 1 %
Gold produced 000’oz      257.3      256.9 – %
Gold sold 000’oz      257.3      256.9 – %
AISC US$/oz      1,306      1,203 9 %
AIC US$/oz      1,306      1,203 9 %
Sustaining capital expenditure US$m      120.2      107.7 12 %
Non-sustaining expenditure US$m           –           – – %
Total capital expenditure US$m      120.2      107.7 12 %
Adjusted free cash flow US$m      104.3      115.1 (9) %

Gold production (100% basis) increased marginally to 257,300oz for the six months ended 30 June 2022 from 256,900oz for the six months ended 30 June 2021. Yield remained similar at 1.15g/t for the six months ended 30 June 2022. Ore rehandled from stockpiles was 958kt at a grade of 1.54g/t for the six months ended 30 June 2022 compared to 2,256kt at a grade of 0.78g/t for the six months ended 30 June 2021.

Total tonnes mined, including capital waste stripping, decreased by 7% to 43.4Mt for the six months ended 30 June 2022 from 46.4Mt for the six months ended 30 June 2021 in line with the 2022 production schedule. Ore tonnes mined increased by 22% to 6.3Mt for the six months ended 30 June 2022 from 5.2Mt for the six months ended 30 June 2021. Capital waste tonnes mined decreased by 21% to 22.3Mt for the six months ended 30 June 2022 from 28.2Mt for the six months ended 30 June 2021 due to focus on ore and operational waste mining. Operational waste mined, increased by 13% to 14.7Mt for the six months ended 30 June 2022 from 13.0Mt for the six months ended 30 June 2021. Strip ratio decreased by 28% to 5.8 for the six months ended 30 June 2022 from 8.0 for the six months ended 30 June 2021 due to increased ore mined in line with the 2022 production schedule.

All-in cost increased by 9% to US$1,306/oz for the six months ended 30 June 2022 from US$1,203/oz for the six months ended 30 June 2021 due to higher royalty tax, on the back of higher gold prices, higher mining cost as a result of an increase in fuel and explosives price and higher capital expenditure as a result of increased activities and inflation.

Capital expenditure increased by 12% to US$120m for the six months ended 30 June 2022 from US$108m for the six months ended 30 June 2021 due to higher capital waste expenditure as a result of higher mining unit rates.

Tarkwa generated adjusted cash flow of US$104m for the six months ended 30 June 2022 compared with US$115m for the six months ended 30 June 2021 mainly due to higher capital expenditure and higher costs partially offset by a higher gold price received.

Guidance 2022
Inflationary increases in fuel and explosive prices and increases in royalty tax as a result of the higher forecasted gold price resulted in a revision of Tarkwa’s guidance as follows:

  • Gold produced ~ 515,000oz (unchanged);
  • Capital expenditure ~ US$228 (original guidance US$198m);
  • All-in sustaining costs ~ US$1,340/oz, (original guidance US$1,230/oz); and
  • Total all-in cost ~ US$1,340/oz, (original guidance US$1,230/oz).

Damang

    June
2022
June
2021
%
Variance
Ore mined 000
tonnes
     3,610      4,277 (16) %
Waste (capital) 000
tonnes
     4,312           – – %
Waste (operational) 000
tonnes
     4,629      7,527 (39) %
Total waste mined 000
tonnes
     8,941      7,527 19 %
Total tonnes mined 000
tonnes
   12,551    11,804 6 %
Grade mined g/t        1.57        1.57 – %
Gold mined 000’oz      182.6      216.4 (16) %
Strip ratio waste/ore          2.5          1.8 39 %
Tonnes milled 000
tonnes
     2,351      2,352 – %
Yield g/t        1.66        1.77 (6) %
Gold produced 000’oz      125.2      133.5 (6) %
Gold sold 000’oz      125.2      133.5 (6) %
AISC US$/oz         884         753 17 %
AIC US$/oz         964         810 19 %
Sustaining capital expenditure US$m        27.9          5.9 373 %
Non-sustaining expenditure US$m          5.2          4.3 21 %
Total capital expenditure US$m        33.1        10.2 225 %
Adjusted free cash flow US$m        50.1        66.8 (25) %

Gold production (100%) decreased by 6% to 125,200oz for the six months ended 30 June 2022 from 133,500oz for the six months ended 30 June 2021 mainly due to lower yield. Yield decreased by 6% to 1.66g/t for the six months ended 30 June 2022 from 1.77g/t for the six months ended 30 June 2021 in line with the plan. This was a function of the low-grade material fed from the stockpile to augment the ex-pit material as the mine nears the end of the pit life. A total of 294kt ore was rehandled from the stockpile for the six months ended 30 June 2022 at a grade of 1.32g/t compared with 421kt at a grade of 1.96g/t for the six months ended 30 June 2021. In addition, plant recovery decreased to 92% for the six months ended 30 June 2022 compared with the 93% for the six months ended 30 June 2021 on the back of the lower grade.

Total tonnes mined increased by 6% to 12.6Mt for the six months ended 30 June 2022 from 11.8Mt for the six months ended 30 June 2021 due the to inclusion of Huni pit mining.

Operational waste tonnes decreased by 39% to 4.6Mt for the six months ended 30 June 2022 from 7.5Mt for the six months ended 30 June 2021 in line with the plan. Ore tonnes mined decreased by 16% to 3.6Mt for the six months ended 30 June 2022 from 4.3Mt for the six months ended 30 June 2021.

Gold mined decreased by 16% to 182,600oz for the six months ended 30 June 2022 from 216,400oz for the six months ended 30 June 2021 due to lower ore tonnes mined.

Strip ratio increased by 39% to 2.5 for the six months ended 30 June 2022 from 1.8 for the six months ended 30 June 2021 due to the increased capital waste stripping in the Huni pit.

All-in cost increased by 19% to US$964/oz for the six months ended 30 June 2022 from US$810/oz for the six months ended 30 June 2021 due to lower gold sold and higher capital expenditure due to the Huni waste stripping, partially offset by lower cost of sales before amortisation and depreciation.

Capital expenditure increased by 225% to US$33m for the six months ended 30 June 2022 from US$10m for the six months ended 30 June 2021. Sustaining capital expenditure increased by 373% to US$28m for the six months ended 30 June 2022 from US$6m for the six months ended 30 June 2021 due to expenditure on Huni waste stripping. Nonsustaining capital expenditure increased by 21% to US$5m for the six months ended 30 June 2022 from US$4m for the six months ended 30 June 2021 due to Stage 4 design and Zone C rockfill placement of the FETSF.

Damang generated adjusted free cash flow of US$50m for the six months ended 30 June 2022 compared with US$67m for the six months ended 30 June 2021 mainly due to the decrease in gold sold, and higher costs and capital.

Guidance 2022
Damang gold production remains unchanged. However, increases in fuel and explosive prices, rise and fall indices and other inflationary pressures have impacted on the year’s AIC. In addition to the above, royalty has also increased due to the higher forecasted gold price. Damang’s guidance is therefore revised as follows:

  • Gold produced ~ 229,000oz (unchanged);
  • Capital expenditure ~ US$58m (original guidance US$52m);
  • All-in sustaining costs ~ US$1,020/oz (original guidance US$950/oz), and
  • Total all-in cost ~ US$1,100/oz (original guidance US$1,030/oz),

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

    June
2022
June
2021
%
Variance
Ore mined 000
tonnes
     1,750      3,174 (45) %
Waste (capital) 000
tonnes
          –      1,479 (100) %
Waste (operational) 000
tonnes
     6,599    17,146 (62) %
Total waste mined 000
tonnes
     6,599    18,625 (65) %
Total tonnes mined 000
tonnes
     8,349    21,799 (62) %
Grade mined g/t        1.53        1.27 20 %
Gold mined 000’oz        86.0      129.5 (34) %
Strip ratio waste/ore          3.8          5.9 (36) %
Tonnes milled 000
tonnes
     2,888      2,919 (1) %
Yield g/t        0.99        1.18 (16) %
Gold produced 000’oz        92.4      110.4 (16) %
Gold sold 000’oz        88.2      116.3 (24) %
AISC US$/oz      1,482      1,314 13 %
AIC US$/oz      1,576      1,448 9 %
Sustaining capital expenditure US$m          4.1        10.6 (61) %
Non-sustaining expenditure US$m          1.9        10.2 (81) %
Total capital expenditure US$m          6.0        20.8 (71) %
Redemption of preference shares US$m           –          5.0 (100) %

Gold production decreased by 16% to 92,400oz (100% basis) for the six months ended 30 June 2022 from 110,400oz (100% basis) for the six months ended 30 June 2021 mainly due to lower tonnes milled and lower yield. The decrease in gold production is in line with the guidance provided in Q1 of ramping down in mining activities at Esaase and Akwasiso Cut 3. Mining activities at the Esaase pit was ended in May 2022.

Total tonnes mined decreased by 62% to 8.3Mt for the six months ended 30 June 2022 from 21.8Mt for the six months ended 30 June 2021. Waste tonnes mined decreased by 65% to 6.6Mt for the six months ended 30 June 2022 from 18.6Mt for the six months ended 30 June 2021 mainly due to lower stripping of Akwasiso Cut 3 and suspension of mining activities at Esaase in May 2022. Similarly, ore tonnes mined decreased by 45% to 1.8Mt for the six months ended 30 June 2022 from 3.2Mt tonnes for the six months ended 30 June 2021.

All-in cost increased by 9% to US$1,576/oz for the six months ended 30 June 2022 from US$1,448/oz for the six months ended 30 June 2021 underpinned by a 24% decrease in gold sales, partially offset by lower capital expenditure.

Total capital expenditure (100% basis) decreased by 71% to US$6m for the six months ended 30 June 2022 from US$21m for the six months ended 30 June 2021. Sustaining capital expenditure decreased by 61% to US$4m for the six months ended 30 June 2022 from US$11m for the six months ended 30 June 2021. Non-sustaining capital expenditure decreased by 81% to US$2m for the six months ended 30 June 2022 from US$10m for the six months ended 30 June 2021. The decreases in capital expenditure are in line with the ramping down of activities with most of the big capital items from 2021 (TSF raise, Tetrem RAP etc.) not recurring in 2022. Most of the exploration capital expenditure in 2022 are scheduled to occur in the second half of the year.

Full year gold production guidance (100% basis), is estimated at between 135Koz-145Koz (original guidance – 110Koz-130Koz).

South America region

Peru

Cerro Corona

    June
2022
June
2021
%
Variance
Ore mined 000
tonnes
     5,478      3,032 81 %
Waste mined 000
tonnes
     7,687    10,469 (27) %
Total tonnes mined 000
tonnes
   13,165    13,501 (2) %
Grade mined – gold g/t        0.72        0.74 (3) %
Grade mined – copper per cent        0.40        0.43 (7) %
Gold mined 000’oz      126.6        72.4 75 %
Copper mined tonnes    21,930    12,999 69 %
Tonnes milled 000
tonnes
     3,416      3,336 2 %
Gold recoveries per cent        68.7        59.6 15 %
Copper recoveries per cent        88.2        86.0 3 %
Yield – gold g/t        0.58        0.41 41 %
         – copper per cent        0.41        0.35 17 %
         – combined eq g/t        1.18        0.93 27 %
Gold produced 000’oz        60.9        42.5 43 %
Copper produced tonnes    13,310    11,247 18 %
Total equivalent gold produced 000’
eq oz
     129.9        99.3 31 %
Total equivalent gold sold 000’
eq oz
     130.5      103.5 26 %
AISC US$/oz         312           31 906 %
AISC US$/
eq oz
        940      1,041 (10) %
AIC US$/oz         397         321 24 %
AIC US$/
eq oz
        981      1,162 (16) %
Sustaining capital expenditure US$m        12.4          7.1 75 %
Non-sustaining expenditure US$m          4.0        11.7 (66) %
Total capital expenditure US$m        16.4        18.8 (13) %
Adjusted free cash flow US$m        55.8        27.9 100 %

Gold production increased by 43% to 60,900oz for the six months ended 30 June 2022 from 42,500oz for the six months ended 30 June 2021 and copper production increased by 18% to 13,310t for the six months ended 30 June 2022 from 11,247t for the six months ended 30 June 2021. In both cases, the increases were mainly due to higher yield as a result of higher head grades processed and higher recoveries. As a result of the above, equivalent gold production (100% basis) increased by 31% to 129,900oz for the six months ended 30 June 2022 from 99,300oz for the six months ended 30 June 2021.

Total tonnes mined decreased by 2% to 13.2Mt for the six months ended 30 June 2022 from 13.5Mt for the six months ended 30 June 2021 mainly due to a decrease in waste mined by 27% to 7.7Mt for the six months ended 30 June 2022 from 10.5Mt for the six months ended 30 June 2021, partially offset by an increase in ore mined of 81% to 5.5Mt for the six months ended 30 June 2022 from 3.0Mt for the six months ended 30 June 2021.

All-in cost per gold ounce increased by 24% to US$397/oz for the six months ended 30 June 2022 from US$321/oz for the six months ended 30 June 2021 mainly due to higher operating expenses as a result of the worldwide inflation related to commodities such as diesel, grinding media, explosives and energy among others; partially offset by higher gold ounces sold and lower capital expenditure. All-in cost per equivalent ounce decreased by 16% to US$981/eq oz for the six months ended 30 June 2022 from US$1,162/eq oz for the six months ended 30 June 2021 mainly due to higher equivalent ounces sold and lower capital expenses, partially offset by higher operating expenses as described above.

Total capital expenditure decreased by 13% to US$16m for the six months ended 30 June 2022 from US$19m for the six months ended 30 June 2021. Non-sustaining capital expenditure decreased by 66% to US$4m for the six months ended 30 June 2022 from US$12m for the six months ended 30 June 2021 mainly due to the Arpon waste storage facility construction (US$8m) included in the capital for H1 2021 in order to comply with the mining sequence. Sustaining capital expenditure increased by 75% to US$12m for the six months ended 30 June 2022 from US$7m for the six months ended 30 June 2021 due to the focus on the construction activities at the tailings dam during H1 2022 and land acquisition expense.

Cerro Corona generated adjusted free cash flow of US$56m for the six months ended 30 June 2022 compared with US$28m for the six months ended 30 June 2021 mainly due to the increase in gold and copper production and higher gold and copper prices.

Guidance 2022
As a result of the inflationary increases guidance for 2022 provided in February revised as follows:

  • Gold equivalents produced ~ 255,000oz (unchanged);
  • Gold produced ~ 120,000oz (unchanged);
  • Copper tonnes produced ~ 27,000t (unchanged);
  • Capital expenditure ~ US$46m (unchanged);
  • Copper price ~ US$8,000 per tonne (unchanged);
  • Gold price ~ US$1,600/oz (unchanged);
  • All-in sustaining costs ~ US$970/eq oz (original guidance US$900/eq oz);
  • Total all-in cost ~ US$1,050/eq oz (original guidance US$990/eq oz);
  • All-in sustaining costs ~ US$320/oz(unchanged); and
  • Total all-in cost ~ US$500/oz (unchanged).

In line with the planned mining sequence used to determine the 2022 guidance, equivalent gold production is expected to decrease in Q3 2022, with full year production still in line with guidance provided in February 2022.

Chile

Salares Norte

Salares Norte total project progress is now at 77% and construction progress increased to 73.1% for the six months ended 30 June 2022. The total project to date of 77% compares with 41.9% at the end of June 2021 and 62.5% at the end of December 2021.

During the latter part of Q2 and the start of Q3 2022 a fourth wave of Covid-19 and severe weather conditions have impacted the construction activities at Salares Norte.  After managing to keep the project on track through the challenges of the past two years i.e Covid-19, staff shortages, elevated mining inflation and severe weather events, the recent wave of Covid-19 and weather events is likely to have a marginal delay of 1-3 months on the project timeline.  Consequently there may be a knock-on impact on the ramp up to full production.  Given the uncertainty around the actual extent of the delay (0-3 months) as well as the mitigation actions, we anticipate being able to provide an update on production guidance for 2023/2024 at the end of the year.

US$172m was spent on the project for the six months ended 30 June 2022 compared with US$149m spent for the six months ended 30 June 2021. The US$172m spent comprised of US$145m capital expenditure, US$15m exploration, a US$6m investment in working capital, US$8m in other cost, partially offset by a credit of US$2m from the realised portion of the currency hedge. The US$149m spent during the six months ended 30 June 2021 comprised of US$133m capital expenditure, US$13m exploration, a US$12m investment in working capital, a tax payment of US$9m and other cost of US$5m, partially offset by a credit of US$23m from the realised portion of the currency hedge.

Pre-stripping at the Brecha Principal pit continues as planned and 19.8Mt was stripped for the six months ended 30 June 2022 compared with 6.1Mt stripped for the six months ended 30 June 2021. Project to date pre-stripping is 42.7Mt.

The exploration team remains focused on exploring the district, with 11,103 metres drilled for the six months ended 30 June 2022 compared with 12,470 metres drilled for the six months ended 30 June 2021

In our Q1 operating update, we guided that we are unlikely to deliver the project at the US$860m real capital number. Previously, we anticipated that due to very few change of scope variations and limited use of contingency we were targeting to deliver the project at US$860m nominal and in Q1 we guided that a 5-7% higher capex spend was likely i.e close to the US$920m nominal (US$860m real). If any delays into Q2 2023 occur the capital projection is likely to be US$920m – US$940m

Australia region

    June
2022
June
2021
%
Variance
Gold production 000’oz      527.4      481.2 10 %
  A$/oz      1,554      1,447 7 %
AISC US$/oz      1,117      1,116 – %
  A$/oz      1,685      1,542 9 %
AIC US$/oz      1,211      1,189 2 %
  A$m      326.6      207.5 57 %
Adjusted free cash flow* US$m      234.8      160.1 47 %
* Includes Australia consolidated tax paid and working capital movements of A$209.1m (US$150.2m) in H1 2022 and A$148.2m (US$114.2m) in H1 2021, respectively.

Gold production increased by 10% to 527koz for the six months ended 30 June 2022 from 481koz for the six months ended 30 June 2021 as all the Australian operations had positive production variances for H1 2022 when compared to the comparative period in H1 2021.

All-in cost increased by 9% to A$1,685/oz (US$1,211/oz) for the six months ended 30 June 2022 from A$1,542/oz (US$1,189/oz) for the six months ended 30 June 2021. US$ all-in cost increased by 2% mainly due to translating the largely A$ based costs into US$ was impacted by a 6% weakening of the A$:US$ in the comparative period.

The region produced adjusted free cash flow of A$327m (US$235m) for the six months ended 30 June 2022 compared with A$208m (US$160m) for the six months ended 30 June 2021.

St Ives

    June
2022
June
2021
%
Variance
Underground        
Ore mined 000
tonnes
        801         958 (16) %
Waste mined 000
tonnes
        420         384 9 %
Total tonnes mined 000
tonnes
     1,221      1,342 (9) %
Grade mined g/t        5.04        4.84 4 %
Gold mined 000’oz      130.0      149.2 (13) %
Surface        
Ore mined 000
tonnes
        201         646 (69) %
Surface waste (capital) 000
tonnes
     7,084      2,173 226 %
Surface waste (operational) 000
tonnes
          –      1,269 (100) %
Total waste mined 000
tonnes
     7,084      3,442 106 %
Total tonnes mined 000
tonnes
     7,285      4,088 78 %
Grade mined g/t        1.08        2.71 (60) %
Gold mined 000’oz          7.0        56.2 (88) %
Strip ratio waste/ore        35.2          5.3 564 %
Total (underground and surface)        
Total ore mined 000
tonnes
     1,002      1,604 (38) %
Total grade mined g/t        4.25        3.98 7 %
Total tonnes mined 000
tonnes
     8,506      5,430 57 %
Total gold mined 000’oz      137.0      205.4 (33) %
Tonnes milled 000
tonnes
     2,041      2,048 – %
Yield – underground g/t        5.05        4.61 10 %
         – surface g/t        1.11        1.67 (34) %
         – combined g/t        2.90        2.86 1 %
Gold produced 000’oz      190.3      188.5 1 %
Gold sold 000’oz      191.7      188.5 2 %
AISC A$/oz      1,649      1,357 22 %
  US$/oz      1,185      1,047 13 %
AIC A$/oz      1,715      1,398 23 %
  US$/oz      1,233      1,078 14 %
Sustaining capital expenditure A$m        76.9        58.8 31 %
  US$m        55.3        45.3 22 %
Non-sustaining capital expenditure A$m          5.6          7.6 (26) %
  US$m          4.0          5.9 (32) %
Total capital expenditure A$m        82.5        66.4 24 %
  US$m        59.3        51.2 16 %
Adjusted pre-tax free cash flow A$m      221.0      174.9 26 %
  US$m      158.9      134.9 18 %

Gold production increased by 1% to 190,300oz for the six months ended 30 June 2022 from 188,500oz for the six months ended 30 June 2021.

At the underground operations, ore mined decreased by 16% to 801kt for the six months ended 30 June 2022 from 958kt for the six months ended 30 June 2021 as the Invincible mine develops into higher volume extension vein stopes and due to increasing paste fill requirements as the second Invincible paste plant comes online. Gold mined decreased by 13% to 130,000oz for the six months ended 30 June 2022 from 149,200oz for the six months ended 30 June 2021, as a result of the decrease in ore mined, partially offset by a 4% increase in grade mined.

In the open pits, total tonnes mined increased by 78% to 7,285kt for the six months ended 30 June 2022 from 4,088kt for the six months ended 30 June 2021. This reflected a push to strip stage 7 of the Neptune pit. The mix of tonnes mined was heavily weighted to pre-strip with ore mined decreasing by 69% to 201kt for the six months ended 30 June 2022 from 646kt for the six months ended 30 June 2021. Strip ratios will return to more normal levels in the second half of 2022 as production moves toward mining ore and operating waste.

Grade mined in the open pits decreased by 60% to 1.08g/t for the six months ended 30 June 2022 from 2.71g/t for the six months ended 30 June 2021 when ore mining occurred in the higher grade stages 5 and 6 of the Neptune pit.

Tonnes milled of 2,041kt for the six months ended 30 June 2022 included approximately 1,000kt drawn from stockpiles compared to approximately 450kt drawn from stockpiles for the six months ended 30 June 2021.

All-in cost increased by 23% to A$1,715/oz (US$1,233/oz) for the six months ended 30 June 2022 from A$1,398/oz (US$1,078/oz) for the six months ended 30 June 2021 due to high level of pre-strip with minimal ounces being derived from the open pits. All-in cost per ounce will decrease in the second half of 2022 as the open pits move back to a normal production profile. All-in cost for the six months ended 30 June 2022 was also impacted by the abnormally high inflationary pressures on commodity inputs and employee costs.

Total capital expenditure increased by 24% to A$83m (US$59m) for the six months ended 30 June 2022 from A$66m (US$51m) for the six months ended 30 June 2021. Sustaining capital expenditure increased by 31% to A$77m (US$55m) for the six months ended 30 June 2022 from A$59m (US$45m) for the six months ended 30 June 2021 reflecting the increased pre-strip activities at Neptune stage 7 pit.

Non-sustaining capital expenditure decreased by 26% to A$6m (US$4m) for the six months ended 30 June 2022 from A$8m (US$6m) for the six months ended 30 June 2021 with expenditure in H1 2022 focused on invincible deeps under ground development.

St Ives generated adjusted pre-tax free cash flow of A$221m (US$159m) for the six months ended 30 June 2022 compared with A$175m (US$135m) for the six months ended 30 June 2021 mainly due to a higher gold price received from A$2,344/oz (US$1,808/oz) for the six months ended 30 June 2021 to A$2,599/oz (US$1,868/oz) for the six months ended 30 June 2022 partially offset by higher costs and capital.

Guidance 2022
The impact of higher production costs has made it necessary to update the original guidance of St Ives as follows:

  • Gold produced ~ 380,000oz (unchanged);
  • Capital expenditure ~ A$151m (US$106m) (original guidance A$148m (US$112m));
  • All-in sustaining cost ~ A$1,485/oz (US$1,130/oz) (unchanged); and
  • Total all-in cost ~ A$1,600/oz (US$1,125), (original guidance A$1,585/oz (US$1,205/oz)).

Agnew

    June
2022
June
2021
%
Variance
Underground ore mined 000
tonnes
510 522 (2)%
Underground waste mined 000
tonnes
433 464 (7)%
Total tonnes mined 000
tonnes
943 986 (4)%
Grade mined – underground g/t 7.38 6.64 11 %
Gold mined 000’oz 121.0 111.4 9 %
Tonnes milled 000
tonnes
584 626 (7)%
Yield g/t 6.42 5.55 16 %
Gold produced 000’oz 120.5 111.7 8 %
Gold sold 000’oz 121.0 112.5 8 %
  A$/oz 1,652 1,528 8 %
AISC US$/oz 1,188 1,178 1 %
  A$/oz 1,882 1,692 11 %
AIC US$/oz 1,353 1,305 4 %
Sustaining capital expenditure A$m 43.0 36.5 18 %
  US$m 30.9 28.1 10 %
Non-sustaining capital expenditure A$m 25.7 18.5 39 %
  US$m 18.5 14.3 29 %
Total capital expenditure A$m 68.7 55.0 25 %
  US$m 49.4 42.4 17 %
Adjusted pre-tax free cash flow A$m 86.1 78.5 10 %
  US$m 61.9 60.6 2 %

Gold production increased by 8% to 120,500oz for the six months ended 30 June 2022 from 111,700oz for the six months ended 30 June 2021 due to an increase in grade of ore mined and processed in line with the plan, partially offset by a decrease in ore milled.

Grade mined increased by 11% to 7.38g/t for the six months ended 30 June 2022 from 6.64g/t for the six months ended 30 June 2021 due to increased grade of ore mined from Waroonga with ore production from the high grade Kath lode ore body. As a result of the increase in grade partially offset by a 2% decrease in ore mined, gold mined increased by 9% to 121,000oz for the six months ended 30 June 2022 from 111,400oz in the six months ended 30 June 2021.

All-in cost increased by 11% to A$1,882/oz (US$1,353/oz) for the six months ended 30 June 2022 from A$1,692/oz (US$1,305/oz) for the six months ended 30 June 2021 due to increased capital expenditure and inflationary pressures on commodity inputs and employee costs, which resulted in higher production costs. The production and capital cost increases were partially offset by increased gold sold.

Total capital expenditure increased by 25% to A$69m (US$49m) for the six months ended 30 June 2022 from A$55m (US$42m) for the six months ended 30 June 2021.

Sustaining capital expenditure increased by 18% to A$43m (US$31m) for the six months ended 30 June 2022 from A$37m (US$28m) for the six months ended 30 June 2021, with A$5m (US$4m) spent during the six months ended 30 June 2022 on the expansion of the accommodation village.

Non-sustaining capital expenditure increased by 39% to A$26m (US$19m) for the six months ended 30 June 2022 from A$19m (US$14m) for the six months ended June 2021 due to increased expenditure incurred on the mill crushing circuit replacement project.

Agnew generated adjusted pre-tax free cash flow of A$86m (US$62m) for the six months ended 30 June 2022 compared with A$79m (US$61m) for the six months ended 30 June 2021 mainly due to increased gold sold and a higher gold price received from A$2,351/oz (US$1,814/oz) for the six months ended 30 June 2021 to A$2,596/oz (US$1,866/oz) for the six months ended 30 June 2022.

Guidance 2022
The impact of higher production costs together with delays in the mining schedule due to Covid-19 related labour disruptions at Waroonga has made it necessary to update the original guidance of Agnew to the following:

  • Gold produced ~ 240,000oz, (original guidance 251,000oz);
  • Capital expenditure ~ A$127m (US$97m) (unchanged);
  • All-in sustaining costs ~ A$1,630/oz (US$1,150/oz), original guidance A$1,540/oz (US$1,170/oz); and
  • Total all-in cost ~ A$1,860/oz (US$1,310/oz), original guidance A$1,765/oz (US$1,340/oz).

Granny Smith

    June
2022
June
2021
%
Variance
Underground ore mined
000
tonnes
804 828 (3)%
Underground waste mined 000
tonnes
349 447 (22)%
Total tonnes mined 000
tonnes
1,153 1,275   (10)%
Grade mined – underground g/t 5.85 5.02   17 %
Gold mined 000’oz 151.1 133.6   13 %
Tonnes milled 000
tonnes
777 824    (6)%
Yield g/t 5.54 4.58   21 %
Gold produced 000’oz 138.3 121.3   14 %
Gold sold 000’oz 138.3 122.6   13 %
AISC A$/oz 1,456 1,501    (3)%
  US$/oz 1,047 1,158   (10)%
AIC A$/oz 1,663 1,654    1 %
  US$/oz 1,196 1,276    (6)%
Sustaining capital expenditure A$m 33.5 33.8    (1)%
  US$m 24.0 26.1    (8)%
Non-sustaining capital expenditure A$m 24.2 18.8   29 %
  US$m 17.4 14.5   20 %
Total capital expenditure A$m 57.7 52.6   10 %
  US$m 41.4 40.6    2 %
Adjusted pre-tax free cash flow A$m 141.9 65.5   117 %
  US$m 102.0 50.5   102 %

Gold production increased by 14% to 138,300oz for the six months ended 30 June 2022 from 121,300oz for the six months ended 30 June 2021 due to increased grades of ore mined and processed.

Underground waste mined decreased by 22% to 349,000t for the six months ended 30 June 2022 from 447,000t for the six months ended 30 June 2021 with development completed in the upper levels of the Wallaby orebody. Focus remains on development of the second decline, with 1,455 metres advanced for the six months ended 30 June 2022 compared to 1,410 metres advanced for the six months ended 30 June 2021.

Grade mined increased by 17% to 5.85 g/t for the six months ended 30 June 2022 from 5.02 g/t for the six months ended 30 June 2021 with improved grades coming as the Z120 area is developed.

All-in cost increased by 1% to A$1,663/oz (US$1,196/oz) for the six months ended 30 June 2022 from A$1,654/oz (US$1,276/oz) for the six months ended 30 June 2021. Increased capital expenditure and higher production cost resulting from inflationary pressures on commodity inputs and employee costs, were largely offset by increased gold sales.

Capital expenditure increased by 10% to A$58m (US$41m) for the six months ended 30 June 2022 from A$53m (US$41m) for the six months ended 30 June 2021. Sustaining capital expenditure remained similar at A$34m (US$24m) for the six months ended 30 June 2022. Non-sustaining capital expenditure increased by 29% to A$24m (US$17m) for the six months ended 30 June 2022 from A$19m (US$15m) for the six months ended 30 June 2021, due to increased expenditure on development of the Z135 area.

Granny Smith generated adjusted pre-tax free cash flow of A$142m (US$102m) for the six months ended 30 June 2022 compared with A$66m (US$51m) for the six months ended 30 June 2021, mainly due to increased gold sold and a higher gold price received from A$2,322/oz (US$1,792/oz) for the six months ended 30 June 2021 to A$2,600/oz (US$1,869/oz) for the six months ended 30 June 2022.

Guidance 2022
Guidance for 2022 provided in February remains unchanged as follows:

  • Gold produced ~ 267,000oz;
  • Capital expenditure ~ A$130m (US$99m);
  • All-in sustaining costs ~ A$1,530/oz (US$1,165/oz) and
  • Total all-in cost ~ A$1,710/oz (US$1,300/oz).

Gruyere

    June
2022
June
2021
%
Variance
Mine physicals in table on a 100% basis        
Ore mined 000
tonnes
5,309 4,548  17 %
Waste (capital) 000
tonnes
10,498 13,575   (23)%
Waste (operational) 000
tonnes
3,799 172  2109 %
Total waste mined 000
tonnes
14,297 13,747    4 %
Total tonnes mined 000
tonnes
19,606 18,295  7 %
Grade mined g/t 1.14 0.96  19 %
Gold mined 000’oz 193.9 139.9  39 %
Strip ratio waste/ore 2.7 3.0  (10)%
Tonnes milled 000
tonnes
4,554 4,102  11 %
Yield g/t 1.07 0.90  19 %
Gold produced 000’oz 156.8 119.3  31 %
Gold sold 000’oz 159.2 121.1  31 %
AISC A$/oz 1,345 1,469 (8) %
  US$/oz 967 1,133 (15) %
AIC A$/oz 1,348 1,486 (9) %
  US$/oz 969 1,146 (15)%
Sustaining capital expenditure – 50% basis A$m 22.1 27.4 (19)%
  US$m 15.9 21.2 (25)%
Non-sustaining capital expenditure – 50% basis A$m 1.0 (100)%
  US$m 0.8 (100)%
Total capital expenditure – 50% basis A$m 22.1 28.4 (22)%
  US$m 15.9 22.0 (28)%
Adjusted pre-tax free cash flow A$m 86.7 36.8 136 %
  US$m 62.3 28.4 119 %

Gold production increased by 31% to 156,800oz for the six months ended 30 June 2022 from 119,300oz for the six months ended 30 June 2021 due to increased grades of ore mined and processed, as well as increased ore milled.

Ore tonnes mined increased by 17% to 5.3Mt for the six months ended 30 June 2022 from 4.6Mt for the six months ended 30 June 2021 with increased ore sourced from stage 3 of the Gruyere pit.

Capital waste tonnes mined decreased by 23% to 10.50Mt for the six months ended 30 June 2022 from 13.6Mt for the six months ended 30 June 2021 and operational waste tonnes mined increased by 2109% to 3.8Mt for the six months ended 30 June 2022 from 0.2Mt for the six months ended 30 June 2021 following stage 3 of the Gruyere pit moving out of pre-strip phase during 2022.

Grade mined increased by 19% to 1.14g/t for the six months ended 30 June 2022 from 0.96g/t for the six months ended 30 June 2021 with increased grades mined from stages 2 and 3 of the Gruyere pit. As a result of the increase in grade and a 17% increase in ore mined, gold mined increased by 39% to 193,900oz for the six months ended 30 June 2022 from 139,900oz for the six months ended 30 June 2021.

Ore tonnes milled increased by 11% to 4.5Mt for the six months ended 30 June 2022 from 4.1Mt for the six months ended 30 June 2021 with processing improvements projects yielding record production rates.

All-in cost decreased by 9% to A$1,348/oz (US$969/oz) for the six months ended 30 June 2022 from A$1,486/oz (US$1,146/oz) for the six months ended 30 June 2021 due to higher gold sold and decreased capital expenditure, partially offset by higher production cost resulting from inflationary pressures on commodity inputs and employee costs.

Capital expenditure (on a 50% basis) decreased by 22% to A$22m (US$16m) for the six months ended 30 June 2022 from A$28m (US$22m) for the six months ended 30 June 2021, reflecting the completion of pre-stripping stage 3 of the pit.

Gruyere generated adjusted pre-tax free cash flow (on a 50% basis) of A$87m (US$62m) for the six months ended 30 June 2022 compared with A$37m (US$28m) for the six months ended 30 June 2021, mainly due to increased gold sold and a higher gold price received from A$2,345/oz (US$1,811/oz) for the six months ended 30 June 2021 to A$2,609/oz (US$1,876/oz) for the six months ended 30 June 2022.

Guidance 2022
The impact of higher production costs has made it necessary to update the original guidance of Gruyere to the following:

  • Gold produced ~ 165,000oz (50%), (original guidance 145,000oz (50%) to 165,000oz (50%));
  • Capital expenditure ~ A$51m (US$36m) (original guidance A$45m (US$34m)) (50%);
  • All-in sustaining costs ~ A$1,400/oz (US$985/oz), (original guidance A$1,245/oz (US$985/oz); and
  • Total all-in cost ~ A$1,410/oz (US$990/oz), original guidance A$1,265/oz (US$990/oz).