Gold Fields

Review of Operations (UNREVIEWED)

Quarter ended 31 December 2019 compared with quarter ended 30 September 2019

South Africa region

South Deep

 
Dec
2019
  Sept
2019
  %
Variance
 
  Ore mined 000 tonnes   302   328   (8)%  
  Waste mined 000 tonnes   14   11   28%  
  Total tonnes mined 000 tonnes   317   339   (7)%  
  Grade mined – underground reef g/t     6.54     5.70     10%  
  Grade mined – underground total g/t     6.25     5.52     13%  
  Gold mined 000’oz   63.6   60.2   6%  
    kg   1,978   1,873   6%  
  Destress m2   8,124   8,291   (2)%  
  Development m   1,126   1,015   11%  
  Secondary support m     2,165     4,477     (52)%  
  Backfill m3   122,520   128,093   (4)%  
  Ore milled – underground  000 tonnes     344     329     5%  
  Ore milled – surface  000 tonnes     219     234     (6)%  
  Total tonnes milled  000 tonnes     563     563     0%  
  Yield – underground reef g/t     6.25     5.78     8%  
  Surface yield g/t   0.10   0.17   (42)%  
  Total yield g/t   3.83   3.37   14%  
  Gold produced 000’oz   69.4   61.0   14%  
    kg   2,159   1,897   14%  
  Gold sold kg   2,286   1,818   26%  
    000’oz   73.5   58.4   26%  
  AISC – original interpretation R/kg     443,563     588,855     (25)%  
    US$/oz   932   1,258   (26)%  
  AISC – revised interpretation guidance (WGC November 2018) R/kg     443,563     588,855     (25)%  
    US$/oz   932   1,258   (26)%  
  AIC R/kg   443,563   588,855   (25)%  
    US$/oz   932   1,258   (26)%  
  Sustaining capital expenditure  Rm     112.1     117.1     (4)%  
    US$m   7.6   8.0   (5)%  
  Non-sustaining capital expenditure  Rm         —     —  
    US$m        
  Total capital expenditure Rm   112.1   117.1   (4)%  
    US$m   7.6   8.0   (5)%  

Gold production increased by 14% to 2,159 kilograms (69,400 ounces) in the December quarter from 1,897 kilograms (60,990 ounces) in the September quarter due to improved grades mined and milling of underground ore stocks. Underground reef grade mined increased by 15% to 6.54g/t in the December quarter 2019 from 5.70g/t in the September quarter 2019 due to improved destress grades, stoping extraction quality and increased mining in higher grade corridors in line with the plan.

All-in sustaining costs and all-in costs decreased by 25% to R443,563/kg (US$932/oz) in the December quarter from R588,855/kg (US$1,252/oz) in the September quarter mainly due to higher gold sold, lower sustaining capital expenditure and lower cost of sales before amortisation and depreciation.

West Africa region

Ghana

Tarkwa

 
Dec
2019
  Sept
2019
  %
Variance
 
Ore mined 000 tonnes   3,351   3,666   (9)%  
Waste mined 000 tonnes   16,739   20,284   (17)%  
Total tonnes mined 000 tonnes   20,089   23,950   (16)%  
Grade mined g/t   1.21   1.21   0%  
Gold mined 000’oz   130.5   143.1   (9)%  
Tonnes milled 000 tonnes   3,426   3,437   0%  
Yield g/t   1.10   1.15   (5)%  
Gold produced 000’oz   120.9   127.3   (5)%  
Gold sold 000’oz   120.9   127.3   (5)%  
AISC – original interpretation   US$/oz     989     969     2%  
AISC – revised interpretation guidance (WGC November 2018)   US$/oz     989     969     2%  
AIC US$/oz   989   969   2%  
Sustaining capital expenditure   US$m     30.1     27.1     11%  
Non-sustaining expenditure   US$m         —     —  
Total capital expenditure   US$m     30.1     27.1     11%  

Gold production decreased by 5% to 120,900 ounces in the December quarter from 127,300 ounces in the September quarter mainly due to lower yield, in line with the mining sequence and feeding of lower grade stockpiles.

Total tonnes mined, including capital waste stripping, decreased 16% to 20 million tonnes in the December quarter from 24 million tonnes in the September quarter due to lower contractor fleet performance from lower availability. We are in the process of working with the contractor to replace certain key equipment.

All-in sustaining costs and total all-in cost increased by 2% to US$989/oz in the December quarter from US$969/oz in the September quarter due to lower gold sold, partially offset by lower cost of sales before amortisation and depreciation.

Damang

 
Dec
2019
  Sept
2019
  %
Variance
 
Ore mined 000 tonnes   983   1,000   (2)%  
Waste mined 000 tonnes   7,598   7,395   3%  
Total tonnes mined 000 tonnes   8,581   8,395   2%  
Grade mined g/t   1.57   1.59   (1)%  
Gold mined 000’oz   49,702   51,252   (3)%  
Tonnes milled 000 tonnes   1,171   1,158   1%  
Total yield g/t   1.25   1.34   (7)%  
Gold produced 000’oz   46.9   49.7   (6)%  
Gold sold 000’oz   46.9   49.7   (6)%  
AISC – original interpretation   US$/oz     1,149     842     36%  
AISC – revised interpretation guidance (WGC November 2018)   US$/oz     1,149     842     36%  
AIC US$/oz   1,313   1,185   11%  
Sustaining capital expenditure   US$m     (0.1)     1.9     (105)%  
Non-sustaining expenditure   US$m     7.7     17.1     (55)%  
Total capital expenditure   US$m     7.6     18.9     (60)%  

Gold production decreased by 6% to 46,900 ounces in the December quarter from 49,700 ounces in the September quarter mainly due to lower yield. Yield decreased by 7% to 1.25g/t in the December quarter from 1.34g/t in the September quarter due to lower feed grade which was underpinned by lower stockpile grade fed to supplement ore tonnes mined. The December quarter was once again impacted by the transition through the Huni sandstone lithology, which is associated with higher than usual grade variability. The transition through the Huni sandstones will continue during H1 2020 and be completed by mid-year, at which point mining will occur in the higher (and more consistent) grade Tarkwa phyllites.

Capital expenditure decreased by 58% from US$19 million in the September quarter to US$8 million in the December quarter due to lower capital waste tonnes mined as the Damang reinvestment project comes to an end.

All-in sustaining cost increased by 36% to US$1,149/oz in the December quarter from US$842/oz in the September quarter mainly due to lower gold sold and higher cost of sales before amortisation and depreciation. Cost of sales before amortisation and depreciation increased by 37% to US$48 million in the December quarter from US$35 million in the September quarter mainly due to higher operating tonnes mined.

All-in cost increased by 11% to US$1,313/oz in the December quarter from US$1,185/oz in the September quarter due to same reason above.

Asanko (Equity accounted Joint Venture)

 
Dec
2019
  Sept
2019
  %
Variance
 
Ore mined 000 tonnes   1,405   1,105   27%  
Waste mined 000 tonnes   4,956   6,372   (22)%  
Total tonnes mined 000 tonnes   6,362   7,477   (15)%  
Grade mined g/t   1.63   1.47   11%  
Gold mined 000’oz   73.9   52.2   42%  
Tonnes milled 000 tonnes   1,460   1,439   1%  
Total yield g/t   1.41   1.35   4%  
Gold produced 000’oz   66.1   62.4   6%  
Gold sold 000’oz   66.1   63.0   5%  
AISC – original interpretation   US$/oz     969     1,179     (18)%  
AISC – revised interpretation guidance (WGC November 2018)   US$/oz     969     1,179     (18)%  
AIC US$/oz   1,094   1,301   (16)%  
Sustaining capital expenditure   US$m   4.6   11.0     (58)%  
Non-sustaining expenditure   US$m    5.8   2.5   132%  
Total capital expenditure   US$m   10.4     13.5   (23)%  
All figures in table on a 100% basis.

Gold production increased by 6% to 66,100 ounces (100% basis) in the December quarter from 62,400 ounces in the September quarter mainly due to higher yield. Yield increased by 4% to 1.41g/t in the December quarter from 1.35g/t in the September quarter driven by higher grade ore mined during the quarter.

All-in sustaining cost decreased by 18% to US$969/oz in the December quarter from US$1,179/oz in the September quarter underpinned by a 5% increase in gold sold during the December quarter. All-in cost decreased by 16% to US$1,094/oz in the December quarter from US$1,301/oz in the September quarter.

South America region

Peru

Cerro Corona

 
Dec
2019
  Sept
2019
  %
Variance
 
Ore mined 000 tonnes   2,273   2,070   10%  
Waste mined 000 tonnes   2,938   4,239   (31)%  
Total tonnes mined 000 tonnes   5,211   6,309   (17)%  
Grade mined – gold g/t   0.99   1.00   (1)%  
Grade mined – copper   per cent     0.49     0.49     0%  
Gold mined 000’oz   72.6   66.8   9%  
Copper mined tonnes   11,041   10,049   10%  
Tonnes milled 000 tonnes   1,722   1,648   4%  
Yield – Gold g/t   0.76   0.69   10%  
         – Copper per cent   0.47   0.47   (1)%  
         – Combined eq g/t   1.28   1.22   5%  
Gold produced 000’oz   40.4   35.0   15%  
Copper produced tonnes   7,708   7,488   3%  
Total equivalent gold produced   000’eq oz     70.8     64.8     9%  
Total equivalent gold sold   000’eq oz     74.8     65.6     14%  
AISC – original interpretation   US$/oz     628     698     (10)%  
AISC US$/eq oz   940   929   1%  
AISC – revised interpretation guidance (WGC November 2018)   US$/oz     412     604     (32)%  
AISC US$/eq oz   818   877   (7)%  
AIC US$/oz   628   698   (10)%  
AIC US$/eq oz   940   929   1%  
Sustaining capital expenditure   US$m     24.2     15.7     54%  
Non-sustaining expenditure   US$m         —     —  
Total capital expenditure   US$m     24.2     15.7     54%  

Gold production increased by 15% to 40,400 ounces in the December quarter from 35,000 ounces in the September quarter due to higher grades processed, higher recovery and higher ore processed. Copper production increased by 3% to 7,708 tonnes from 7,488 tonnes due to higher tonnes milled and higher recoveries. Equivalent gold production increased by 9% to 70,800 ounces in the December quarter from 64,800 ounces in the September quarter mainly due to the higher gold production.

Gold yield increased by 10% to 0.76g/t in the December quarter from 0.69g/t in the September quarter due to a 4% increase in gold head grade processed to 1.10g/t and a 6% increase in gold recoveries to 66.4%.

All-in cost per gold ounce decreased by 10% to US$628/oz in the December quarter from US$698/oz in the September quarter mainly due to higher by-product credits driven by higher copper sales and a higher copper price received, together with higher gold sold. All-in cost per equivalent ounce increased by 1% to US$940 per equivalent ounce in the December quarter from US$929 per equivalent ounce in the September quarter due to higher capital expenditure.

Capital expenditure increased by 54% to US$24.2 million in the December quarter from US$15.7 million in the September quarter due to an increase in construction activities at the tailings dam, waste storage facilities and infrastructure relocation that were delayed and executed at the end of the year.

Australia region

St Ives

 
Dec
2019
  Sept
2019
  %
Variance
 
Underground                
Ore mined 000 tonnes   380   302   26%  
Waste mined 000 tonnes   237   225   5%  
Total tonnes mined 000 tonnes   618   527   17%  
Grade mined g/t   4.32   3.90   11%  
Gold mined 000’oz   52.8   37.8   40%  
Surface                
Ore mined 000 tonnes   919   1,115   (18)%  
Waste mined 000 tonnes   1,854   2,011   (8)%  
Total tonnes mined 000 tonnes   2,772   3,126   (11)%  
Grade mined g/t   2.13   1.59   34%  
Gold mined 000’oz   62.8   56.9   10%  
Total ore – combined   000 tonnes     1,299     1,417     (8)%  
Grade mined – combined   g/t     2.77     2.08     33%  
Total tonnes – combined   000 tonnes     3,390     3,653     (7)%  
Total gold mined 000’oz   115.6   94.7   22%  
Tonnes milled 000’oz   1,145   1,070   7%  
Yield – underground g/t   4.09   3.35   22%  
         – surface g/t   2.32   1.58   47%  
         – combined g/t   2.93   2.19   34%  
Gold produced 000’oz   107.8   75.2   43%  
Gold sold 000’oz   101.9   78.2   30%  
AISC – original interpretation US$/oz   817   1,050   (22)%  
A$/oz   1,197   1,533   (22)%  
AISC – revised interpretation guidance (WGC November 2018) US$/oz   702   873   (20)%  
US$/oz   1,028   1,275   (19)%  
AIC US$/oz   817   1,050   0%  
AIC A$/oz   1,197   1,533   (47)%  
Sustaining capital expenditure A$m   34.9   34.6   1%  
US$m   23.8   23.8   0%  
Non-sustaining capital expenditure A$m        
US$m        
Total capital expenditure A$m   34.9   34.6   1%  
  US$m   23.8   23.8   0%  

Gold production increased by 43% to 107,800 ounces in the December quarter from 75,200 ounces in the September quarter with the Hamlet North underground mine ramping up, better open pit grades, more tonnes processed and the release of approximately 4,000 ounces left within the circuit at the end of the September quarter.

Total underground ore tonnes mined increased by 26% to 380,500 tonnes in the December quarter from 301,800 tonnes in the September quarter, driven by a combination of a 15-fold increase in tonnes mined from Hamlet and an 18% increase in tonnes mined at Invincible underground, slightly offset by a 35% decrease in tonnes mined from Cave Rocks. Hamlet contributed 15% to underground tonnes mined at St Ives in the December quarter 2019 (September quarter 2019: 1%). Mine activities at the original ore body at the Hamlet underground operation were concluded during the September quarter. Development of the higher-grade Hamlet North ore body continued and development ore was extracted during the December quarter. First production ore is expected during the March 2020 quarter.

Underground mine grade increased by 11% to 4.32g/t in the December quarter from 3.90g/t in the September quarter, driven by increased grades at all underground sources (Invincible, Hamlet and Cave Rocks) and resultant gold mined from underground sources increased by 40% to 52,800 ounces in the December quarter from 37,800 ounces in the September quarter.

Mine activities at the original ore body at the Hamlet underground operation were concluded during the September quarter. Development of the higher-grade Hamlet North ore body continued and development ore was extracted during the December quarter. First production ore is expected during the March 2020 quarter.

Total tonnes mined at the open pits, decreased by 11% to 2.8 million tonnes in the December quarter from 3.1 million tonnes in the September quarter, driven by a decrease in tonnes mined at both the Neptune and Invincible open pits. Mining activities in stage 6 of the Invincible open pit were concluded during the December quarter.

All-in cost decreased by 22% to A$1,197/oz (US$817/oz) in the December quarter from A$1,533/oz (US$1,050/oz) in the September quarter due to increased gold sold.

Agnew

 
Dec
2019
  Sept
2019
  %
Variance
 
Underground ore mined   000 tonnes     333     360     (8)%  
Underground waste mined   000 tonnes     118     161     (27)%  
Total tonnes mined 000 tonnes   451   521   (14)%  
Grade mined – underground   g/t     5.69     4.90     16%  
Gold mined 000’oz   60.9   56.7   7%  
Tonnes milled 000 tonnes   338   307   10%  
Yield g/t   5.13   5.10   1%  
Gold produced 000’oz   55.7   50.4   11%  
Gold sold 000’oz   58.4   45.7   28%  
AISC – original interpretation US$/oz   943   1,200   (21)%  
A$/oz   1,385   1,756   (21)%  
AISC – revised interpretation guidance (WGC November 2018) US$/oz   939   1,061   (11)%  
A$/oz   1,374   1,548   (11)%  
AIC US$/oz   943   1,200   (21)%  
AIC A$/oz   1,385   1,756   (21)%  
Sustaining capital expenditure A$m   9.5   22.5   (58)%  
US$m   6.2   15.3   (60)%  
Non-sustaining capital expenditure A$m        
US$m        
Total capital expenditure A$m   9.5   22.5   (58)%  
  US$m   6.2   15.3   (60)%  

Gold production increased by 11% to 55,700 ounces in the December quarter from 50,400 ounces in the September quarter due to an increase in ore processed. Tonnes processed increased by 10% to 338,000 tonnes in the December quarter from 307,000 tonnes in the September quarter due to a decrease in planned and unplanned maintenance. In addition, business improvement projects conducted during the year to increase crusher throughput were crystalised in the December quarter.

Ore mined from underground decreased by 8% to 332,700 tonnes in the December quarter from 360,200 tonnes in the September quarter and the mined grade increased by 16% to 5.69 grams per tonne in the December quarter from 4.90 grams per tonne in the September quarter. The increased grade mined in the December quarter was due to availability of higher grade from Waroonga North at the Waroonga complex and from Sheba at the New Holland complex.

All-in cost decreased by 21% to A$1,385/oz (US$943/oz) in the December quarter from A$1,756/oz (US$1,200/oz) in the September quarter due to increased gold sold and lower capital expenditure, partially offset by increased cost of sales before amortisation and depreciation.

Capital expenditure decreased by 61% to A$9 million (US$6 million) in the December quarter from A$23 million (US$15 million) in the September quarter due to lower capital development and exploration drilling in the December quarter, as well as the completion of a number of infrastructure projects by the end of the September quarter.

Granny Smith

 
Dec
2019
  Sept
2019
  %
Variance
 
Underground ore mined   000 tonnes     437     451     (3)%  
Underground waste mined   000 tonnes     158     175     (9)%  
Total tonnes mined 000 tonnes   595   626   (5)%  
Grade mined – underground   g/t     5.15     5.12     1%  
Gold mined 000’oz   72.4   74.3   (3)%  
Tonnes milled 000 tonnes   471   464   2%  
Yield g/t   4.69   4.67   0%  
Gold produced 000’oz   71.1   69.7   2%  
Gold sold 000’oz   71.1   69.8   2%  
AISC – original interpretation US$/oz   966   927   4%  
A$/oz   1,411   1,347   5%  
AISC – revised interpretation guidance (WGC November 2018) US$/oz   787   763   3%  
A$/oz   1,150   1,109   4%  
AIC US$/oz   966   927   4%  
AIC A$/oz   1,411   1,347   5%  
Sustaining capital expenditure A$m   32.1   25.8   25%  
US$m   22.0   17.7   24%  
Non-sustaining capital expenditure A$m        
US$m        
Total capital expenditure A$m   32.1   25.8   25%  
US$m   22.0   17.7   24%  

Gold production increased by 2% to 71,100 ounces in the December quarter from 69,700 ounces in the September quarter due to an increase in ore processed.

All-in cost increased by 5% to A$1,411/oz (US$966/oz) in the December quarter from A$1,347/oz (US$927/oz) in the September quarter due to higher capital expenditure, partially offset by increased gold sold.

Capital expenditure increased by 23% to A$32 million (US$22 million) in the December quarter from A$26 million (US$18 million) in the September quarter with added expenditure on underground infrastructure and mobile equipment.

Gruyere

 
Dec
2019
  Sept
2019
  %
Variance
 
Ore mined 000 tonnes   2,190   2,111   4%  
Waste mined 000 tonnes   2,621   3,119   (16)%  
Total tonnes mined 000 tonnes   4,811   5,230   (8)%  
Grade mined g/t   0.92   0.88   5%  
Gold mined 000’oz   65.0   59.7   9%  
Tonnes milled 000 tonnes   2,051   1,111   85%  
Yield g/t   1.06   0.82   30%  
Gold produced 000’oz   70.0   29.1   140%  
Gold sold 000’oz   67.4      
AISC – original interpretation US$/oz   683      
  A$/oz   983      
AISC – revised interpretation guidance (WGC November 2018) US$/oz     683      
A$/oz   983      
AIC US$/oz   684      
AIC A$/oz   983      
Sustaining capital expenditure – 50% basis A$m   7.5      
  US$m     5.2         —  
Non-sustaining capital expenditure – 50% basis A$m     3.7   (100)%  
  US$m         2.1     (100)%  
Total capital expenditure – 50% basis A$m   7.5   3.7   101%  
    US$m     5.2     2.1     153%  

Mine physicals in table on a 100% basis.

* Gold sold was credited to capital during the September quarter prior to commercial levels of production being achieved.

Production commenced at Gruyere during the September quarter, during which the mine produced 29,100 ounces. Commercial levels of production were achieved at the end of the September quarter and the ramp up continued during the December quarter during which 70,000 ounces were produced, an increase of 140% compared to the September quarter. At the end of the December quarter stockpiled material amounted to 78,500 ounces (3.5 million tonnes at 0.70g/t).

Commissioning of the final components of the processing plant was achieved in the September quarter with the SAG and ball mills operating steadily. Ore tonnes processed increased by 85% to 2.1 million tonnes in the December quarter from 1.1 million tonnes in the September quarter, with the volume processed during the December quarter meeting 100% of nameplate capacity (8.2 million tonnes per annum).

Yield for the December quarter was 30% higher at 1.06g/t compared to 0.82g/t in the September quarter where preferential treatment of low-grade ore was undertaken during the start-up in order to test the integrity of the circuit and build up a baseline of gold-in-circuit.

All-in cost for the December quarter were A$983/oz (US$684/oz).