for the six months ended 30 June 2024
COMMENTARY Results for the Group
Six months ended 30 June 2024 compared with six months ended 30 June 2023
Health and safety
During H1 2023 Gold Fields experience two operational fatalities (FY 2023: 2) and two serious injuries (2023: 6) during H1 2024.
On 2 January 2024, a trackless engineering supervisor was fatally injured in an incident involving trackless mining equipment underground at our South Deep mine in South Africa.
A second fatal incident occurred at our St Ives mine in Australia on 23 April 2024, when a colleague was fatally injured in a mobile equipment related incident at a construction site on the mine. We again extend our sincere condolences to the family, friends and colleagues of our two deceased colleagues.
As a result of our continued failure to eliminate fatal incidents, we commissioned DSS+ (formerly Du Pont) to carry out an independent review of the Group’s safety culture, processes, systems and practices. The high-level findings of the study are discussed in the CEO Report.
The study revealed challenges regarding psychological safety of our people as well as wider mental health issues. Addressing these challenges aligns closely with the recommendations arising from the Respectful Workplace review we carried out among our workforce during 2023.
We are continuing to implement the 24 recommendations put together by our teams and EB&Co, the consultancy that carried out the Respectful Workplace review. We have already implemented policy changes to strengthen diversity and eliminate discrimination, bullying, harassment and other undesirable behaviours at our offices and mines.
| Year ended | |||
| Safety | H1 2024 | FY 2023 | H1 2023 |
| Fatalities | 2 | 2 | 1 |
|---|---|---|---|
| Serious injuries1 | 2 | 6 | 3 |
| * | A Serious Injury is a work-related injury that incurs 14 days or more of work lost and results in a range of injuries detailed at goldfields.com/safety.php |
Environmental
No serious (level 3–5) environmental incidents were reported for H1 2024, continuing the trend of preceding years. We last incurred a serious environmental incident in 2018.
The Group has two water-related targets for 2030, focusing on proactive water management and efficiency and enhanced engagement with catchment stakeholders. Performance remains on track to meet these targets:
- H1 2024 water recycled/reused was 73% (H1 2023: 71%). Targets: 2024: 75%; 2030: 80%
- H1 freshwater withdrawal was 6.1 GL (H1 2023: 5.3 GL). Targets: FY 2024: 11.8 GL; 2030: 8.00 GL
Water use is subject to seasonal variation and is usually high in H1 2024 YTD freshwater withdrawal was higher due to a heavy rainfall event at Granny Smith improving their water quality classification to fresh water. The additional water has significant advantages as use of rainwater does not impact aquifers and alleviates future strain on borefields.
Group energy spend was US$212m (20% of operating costs) and US$209/oz for H1 2024 compared to US$405m (19% of operating costs) and US$163/oz in 2023, reflecting slightly higher fuel prices and lower gold production. Group energy use was 7.0 petajoules (PJ), compared to 6.9 PJ for same period last year, or 14.0 PJ for FY2023.
Scope 1 and 2 CO2e emissions were 0.8Mt, consistent with H1 2023 or 1.6 Mt for FY2023. The main reason for the deterioration in emissions intensity was lower gold production despite constant tonnes mined and processed.
Renewables accounted for 17.3% (2023: 17.2%) of electricity consumption at Group level during H1 2024, with renewables providing 50% of electricity consumed by our Agnew mine in Australia and 17% of South Deep's electricity consumption. Wind trials and an Environmental Impact Assessment continue at South Deep. Construction of the US$195m renewables project at St Ives in Australia commenced and, once commissioned, will add impetus in our drive to reduce our scope 1 and 2 emissions.
In line with our 2020 commitment, we published the GISTM reports for our high-priority dams at the Tarkwa and Cerro Corona mines on 4 August 2023 and are on track to publish the GISTM reports for our remaining active facilities by August 2025.
The Salares Norte chinchilla rescue and relocation plan was approved by the regulator in June 2023. Implementation of the three year plan commenced in late 2023. In May, Salares Norte received a directive (MUT) from Chile's environmental regulator (SMA) requesting additional information and ordering temporary suspension of the dismantling of Rocky Area No 3. No relocation activities have been, or are planned to be, carried out during the winter months (until September). The MUT was extended to October 2024. Salares Norte is working with the SMA and independent environmental experts to ensure alignment on the programme.
| Year ended | |||
| Environmental | H1 2024 | FY 2023 | H1 2023 |
| Environmental incidents − level 3–5 | – | – | – |
|---|---|---|---|
| Fresh water withdrawal (GL)1 | 6.10 | 8.78 | 5.28 |
| Water recycled/reused (% of total) | 73.0 | 74.0 | 71.0 |
| Energy consumption (PJ)2 | 7.0 | 140.0 | 6.9 |
| Energy intensity (GJ/oz) | 6.9 | 5.5 | 5.7 |
| CO2 emissions (kt)3 | 0.8 | 1.6 | 0.8 |
| CO2 emissions intensity | |||
| (kg CO2/t mined) | 780 | 656 | 654 |
| Renewables as % of total electricity | 17.3 | 17.2 | 16.6 |
| 1 | Relates to operations only. |
| 2 | Petajoules (1 PJ=1,000,000MJ). |
| 3 | CO2 emissions comprise scope 1 and 2 emissions4. |
| 4 | Scope 1 emissions arise directly from sources managed by the Company. Scope 2 are indirect emissions generated in the production of electricity used by the Company |
Social
Gold Fields continues to focus on maximising in-country and host community economic impact. The Group's total value distribution was US$2.01bn for H1 2024 compared to US$1.90bn in H1 2023. Gold Fields' procurement from in-country suppliers was US$1,28bn for H1 2024 (97% of total procurement) compared to US$1.25bn in H1 2023 (97% of total).
Gold Fields aims to sustain the value delivered to host communities through employment, procurement and social investments. The Group host community workforce was 9,373 people – 52% of the total workforce (excluding projects and corporate offices) for H1 2024 compared to 8,031, 45% of the total workforce, in H1 2023. Group host community procurement spend in H1 2024 was US$527m (41% of total spend), compared to US$427m (33% of total) for the same period in 2023. In total, value creation to host communities amounted to US$601m in H1 2024, 35% of national value creation (H1 2023: US$498m; 31%). Our 2030 target is 30% of total national value creation.
The Group has an approved pipeline of legacy programmes that will positively impact host communities beyond the life-of-mine. Implementation of two programmes has started.
Our total workforce as at 30 June was approximately 20,200 (including projects and corporate offices), comprising 31% employees and 69% contractors, which is a similar distribution as in 2023. Women comprised 25% of Gold Fields' employees at the end of H1 2024, compared to 22% for H1 2023 and 25% for FY 2023. Currently, women occupy 27% of our leadership rolls and 57% of our female employees work in core mining activities.
Post quarter-end Gold Fields announced two significant events that put substance to our Purpose statement of "creating enduring value beyond mining".
On 7 August, Gold Fields and the Ngadju Native Title Aboriginal Corporation announced the signing of an historic Native Title Agreement for the St Ives mine in Australia. The Ngadju People are the determined Native Title holders of the area surrounding Norseman, spanning 102,000km2, which includes sections of the St Ives tenement. It will see significant value delivered to the Ngadju People through compensation payments and other initiatives and benefits, including a substantial initial payment in recognition of the historical mining activities that have occurred on Ngadju lands.
A key focus of the agreement is the protection and management of cultural heritage. Gold Fields will also guarantee entry-level positions for Ngadju people and prioritise prioritise Ngadju employment and procurement.
On 16 August, the Gold Fields Ghana Foundation handed over the newly constructed and refurbished Tarkwa & Abosso (T&A) Stadium in Tarkwa to the National Sports Authority. The rehabilitation work on the T&A Stadium started in January 2020 and was completed in June this year at a cost of US$16.2m – this makes it one of Gold Fields' largest infrastructure investment projects to date.
This investment transformed the 400-seat football park into an 8,000- plus seater world-class stadium, capable of hosting international matches. The contractors building the stadium employed 924 people from Tarkwa and surrounding communities in the construction of the stadium.
The Foundation, which receives funding from Gold Fields Ghana's Tarkwa and Damang mines, has spent over US$100m over the past two decades to ensure sustainable socio-economic development in host communities and strengthen Gold Fields' social licence to operate.
| Year ended | |||
| Social | H1 2024 | FY 2023 | H1 2023 |
| Host community procurement (% of total) | 41 | 31 | 33 |
|---|---|---|---|
| Host community workforce (% of total) | 52 | 52 | 45 |
| Socio-economic development spending (US$m) | 6.5 | 21.0 | 5.7 |
| Women in workforce (% of total) | 25 | 25 | 22 |