Review of Operations

Year ended December 2020 compared with year ended December 2019

Figures may not add as they are rounded independently.

South Africa region

South Deep

Despite the impact of COVID-19, South Deep showed improvements in most key measures during FY2020 compared to FY2019. These improvements are attributed to productivity improvement programmes introduced in 2019 starting to bear fruit and the effective protocols put in place to manage and mitigate the impacts of COVID-19. It is estimated that South Deep lost approximately 32Koz due to COVID-19 related stoppages in 2020, partially offset by ten additional production days as a result of the change in the production calendar.

Ore mined increased by 7% to 1,136 kilo tonnes in 2020 from 1,060 kilo tonnes in 2019. North of Wrench increased its contribution YOY from 60% to 65%, while current mine reduced its contribution from 40% to 35% as part of the focus to transition the mine from current mine to North of Wrench. Gold production increased by 2% to 7,056kg (226,900oz) in 2020 from 6,907kg (222,100oz) in 2019. The increased gold production was due to improved volume and grade mined.

Destress meters developed increased by 27% to 3,156m in 2020 from 2,489m in 2019 and reef horizon development meters decreased by 20% to 3,548m in 2020 from 4,412m in 2019 as a result of opening access to destress areas in 2019 allowing focus to move to destress development. Waste mined increased by 11% to 86 tonnes in 2020 from 77 tonnes in 2019 predominantly as growth capital development was ramped up in the last quarter of 2020.

Secondary support decreased by 26% and backfill by 24% in 2020 as these activities were reinstated later than production post the COVID-19 lockdown restrictions. The period ended December 2019 included the catch-up secondary support and backfill not repeated in 2020.

Surface re-mining and processing increased dramatically by 104% due to fully utilising the separate processing circuit to maximise value from this operation and supplying sufficient underground backfill quantities. Total yield was negatively impacted by the increased surface re-mining volumes and the treatment of other low-grade sources towards the end of Q4 2020. Total yield decreased by 25% to 3.13g/t in 2020 from 4.15g/t in 2019 comprising 3% reduction in the underground reef yield and 33% reduction in the surface yield.

Total all-in cost increased by 13% to R663,635/kg (US$1,260/oz) in 2020 from R585,482/kg (US$1,259/oz) in 2019 due to higher cost of sales before amortisation and depreciation and higher capital expenditure, partially offset by higher gold sold.

Capital expenditure increased by 68% to R804m (US$49m) in 2020 from R479m (US$33m) in 2019 as explained below.

Sustaining capital expenditure increased by 50% to R718m (US$44m) in 2020 from R479m (US$33m) in 2019 mainly due to the purchase of new TM3 equipment (R124m), the refurbishment of existing fleet (R47m), phase 1 of the Newtrax equipment conditioning monitoring and tracking system implementation and IT infrastructure upgrades (R53m). Non-sustaining capital expenditure increased to R86m (US$5m) in 2020 from Rnil (US$nil) in 2019. This increase was due to the recommencement of the growth development.

South Deep generated net cash of R558m (US$34m) in 2020 compared to R221m (US$15m) in 2019.

Guidance 

The estimate for 2021 is as follows:

• Gold produced ~ 9,000kg (289,300 ounces);
• Destress square metres ~ 48,370 square metres;
• Development metres ~ 9,067 metres (including ~ 4,618 metres Destress development, 2,939 metres from Reef horizon development and 1,510 metres from growth capital);
• Sustaining capital expenditure ~ R889m (US$51m);
• Non-sustaining capital expenditure ~ R345m (US$20m);
• All-in sustaining costs ~ R620,000/kg (US$1,240/oz); and
• Total all-in cost ~ R660,000/kg (US$1,320/oz).

Group production and costs have been flexed for inherent operating risks which relate to all or some of the mines. The risk of stoppages due to COVID-19 has not been factored into any guidance estimates in the group. The extent to which COVID-19 impacts on either production or costs is indeterminable at this stage.

Capital expenditure is expected to increase by approximately R430m (US$22m) mainly due to growth capital on new mine development. In addition, the expansion of the Doornpoort tailings facility will commence in 2021 and investment in certain underground infrastructure to support the increase in production is required.

West Africa region

Ghana

Total production increased by 3% to 862koz in 2020 from 840koz in 2019 mainly due to increased production at Damang as mining progressed into the main ore body at the Damang Pit Cutback (DPCB).

All-in cost increased by 2% to US$1,060/oz in 2020 from US$1,039/oz in 2019.

The region produced net cash flow (excluding Asanko) of US$252m in 2020 compared to US$174m in 2019. Gold Fields received US$38m on the redemption of preference shares from Asanko in 2020. If included the total cash flow in 2020 would be US$290m. Gold Fields received US$10m on the redemption of preference shares from Asanko in 2019. If included the total cash flow in 2019 would be US$184m.

Tarkwa

Gold production increased by 1% to 526,300oz in 2020 from 519,100oz in 2019 mainly due to higher tonnes milled. The higher tonnes milled were mainly due to the ten additional production days as a result of the change in the production calendar. Realised yield decreased by 2% to 1.15/t in 2020 from 1.17g/t in 2019 due to feeding lower grade stockpiles to supplement ore tonnes mined. Ore rehandled from stockpiles was 3,993kt at a head grade of 0.76g/t in 2020 compared to 368kt at a head grade of 0.80g/t in 2019.

Total tonnes mined, including capital waste stripping, decreased by 4% to 88.9Mt in 2020 from 92.5Mt in 2019 in line with the 2020 business plan. Ore mined decreased by 21% to 11.9Mt in 2020 from 15.0Mt in 2019 due to increased focus on capital waste mining in line with the business plan, and strategy to feed more medium grade stockpiles. Operational waste decreased by 32% to 28.8Mt in 2020 from 42.2Mt in 2019.

All-in cost increased by 6% to US$1,017/oz in 2020 from US$958/oz in 2019 due to higher royalty tax (related to the higher gold price received) and higher capital expenditure, partially offset by higher gold sold and lower cost of sales before amortisation and depreciation.

Capital expenditure increased by 17% to US$147m in 2020 from US$126m in 2019 due to higher capital waste mined.

Tarkwa generated net cash flow of US$186m in 2020 compared to US$150m in 2019 mainly due to a higher gold sold and price received. 

Guidance

The estimate for 2021 is as follows:

• Gold produced ~ 510,000 ounces;
• Capital expenditure ~ US$174m;
• All-in sustaining costs ~ US$1,075/oz; and
• Total all-in cost ~ US$1,075/oz.

Group production and costs have been flexed for inherent operating risks which relate to all or some of the mines. The risk of stoppages due to COVID-19 has not been factored into any guidance estimates in the group. The extent to which COVID-19 impacts on either production or costs is indeterminable at this stage.

Damang

¹ The comparatives for the year ended 31 December 2019 have been updated to the New Interpretation of the WGC AIC standard.

Gold production increased by 7% to 223,000oz in 2020 from 208,400oz in 2019 mainly due to higher yield and mill throughput due to the ten additional production days as a result of the change in the production calendar. Yield increased by 4% to 1.45g/t in 2020 from 1.40g/t in 2019. The improvement was as a result of the higher feed grade delivered as mining in the Damang Pit Cutback (DPCB) transitioned through the Huni Sandstone lithology (characterised by scattered mineralisation) into the more consistently mineralised Tarkwa Phyllite lithology during the second half (H2) of 2020.

Total tonnes mined decreased by 14% to 29.2Mt in 2020 from 34.1Mt in 2019 in line with the plan due to the completion of capital waste stripping at DPCB and depletion of the Amoanda and Saddle pits.

Capital waste tonnes, included in total waste tonnes, decreased by 100% to nil in 2020 from 17.3Mt in 2019 due to the completion of capital waste stripping following the intersection of the main orebody at the DPCB. Operational waste tonnes subsequently increased by 85% to 22.5Mt in 2020 from 12.2Mt in 2019. Strip ratio decreased by 46% to 3.4 in 2020 from 6.3 in 2019 due to mining in exposed ore zones.

Ore tonnes mined increased by 43% to 6.7Mt in 2020 from 4.7Mt in 2019 as a result of mining in the main ore body at the DPCB. This is in line with the mining sequence as per the Damang reinvestment project (DRP) whereby more ore tonnes are mined during the current stage to ensure enough ore is available for a consistent plant feed at approximately 4.5Mt per annum going forward as mining progresses deeper into the pit and physical space at the bottom of the pit becomes confined.

Gold mined increased by 46% to 347koz in 2020 from 238koz in 2019 due to the combined impact of higher ore tonnes and grade mined from the Damang pit.

Given the plant capacity constraint, 4.8Mt of the ore tonnes mined were processed in 2020 with the balance added to the stockpile. The closing balance of the stockpile increased to 3.3Mt at an average grade of 1.07g/t in 2020 from 1.3Mt at an average grade of 0.79g/t in 2019.

All-in cost decreased by 10% to US$1,035/oz in 2020 from US$1,147/oz in 2019 due to higher gold sold and lower capital expenditure, partially offset by higher cost of sales before amortisation and depreciation and higher royalty tax (related to the higher gold price received).

Capital expenditure decreased by 74% to US$20m in 2020 from US$76m in 2019. Non-sustaining capital expenditure decreased by 91% to US$6m in 2020 from US$71m in 2019. The decrease in capital expenditure is mainly due to the lower capital waste tonnes mined.

Damang generated net cash flow of US$66m in 2020 compared to US$24m in 2019 due to higher revenue resulting from higher gold sold and higher gold prices received.

Guidance

The estimate for 2021 is as follows:

• Gold produced ~ 275,000 ounces;
• Sustaining capital expenditure ~ US$13m;
• Growth capital expenditure ~ US$10m;
• All-in sustaining costs ~ US$730/oz; and
• Total all-in cost ~ US$790/oz.

Group production and costs have been flexed for inherent operating risks which relate to all or some of the mines. The risk of stoppages due to COVID-19 has not been factored into any guidance estimates in the group. The extent to which COVID-19 impacts on either production or costs is indeterminable at this stage.

Asanko (Equity accounted Joint Venture)

All figures in table on a 100% basis.

Gold production decreased marginally to 249,900oz (100% basis) in 2020 from 251,000oz (100% basis) in 2019, of which 112,500oz was attributable to Gold Fields. The decrease was mainly due to lower yield which decreased by 8% to 1.31g/t in 2020 from 1.42g/t in 2019.

Gold mined increased by 16% to 287,900oz (100% basis) in 2020 from 247,900oz (100% basis) in 2019 as more volume was mined at slightly lower grade which resulted in similar gold produced, given the process plant capacity constraints.

Total tonnes mined increased by 44% to 44.5Mt in 2020 from 30.8Mt in 2019 due to bringing on line two new pits namely Esaase South and Akwasiso Cut 2 pits with higher strip ratios to make up for the Nkran pit ore losses. This came as a result of the failure of Nkran western wall and early closure of the pit. In addition higher tonnes were mined in 2020 to provide flexibility and open up ore sources for 2021.

All-in cost increased by 8% to US$1,316/oz in 2020 from US$1,214/oz in 2019 due to increase in cost of sales before amortisation and depreciation. This was driven by the 44% higher tonnes mined in 2020.

Total capital expenditure (100% basis) increased by 16% to US$69m in 2020 from US$60m in 2019 due to increased expenditure on Tetrem relocation project (RAP), exploration at Miridani North and Akwasiso Cut 3.

Asanko generated net cash flow of US$66m in 2020 compared to US$42m in 2019.

Guidance

The estimate for 2021 is as follows:

• Gold produced ~ 235 000 ounces;
• All-in sustaining costs ~ US$1 235/oz; and
• Total all-in cost ~ US$1 400/oz.

This is based on provisional numbers provided to us by Galiano Gold as we do not have an approved business plan.
We have not conducted a detailed review of these numbers.
These numbers will be updated later in the year as and when new information comes to light.

South America region

Peru

Cerro Corona

¹ The comparatives for the year ended 31 December 2019 have been updated to the New Interpretation of the WGC AIC standard.

Since 15 March 2020, the Cerro Corona operation has been impacted by the State of Emergency declared by the Peruvian Government in response to the COVID-19 pandemic, by implementing a quarantine (to varying degrees), which restricted the team's ability to transport people and concentrate. In addition, the new government restrictions and the company health protocols implemented in response to the pandemic, have limited the capacity at the camp, which has negatively impacted the mining operation and construction projects.

Gold production decreased by 24% to 119,400oz in 2020 from 156,200oz in 2019, while copper production decreased by 21% to 24,900 tonnes in 2020 from 31,300 tonnes in 2019, both mainly explained by lower head grades processed as lower grade stockpiles were used to supplement fresh ore mined due to the COVID-19 restrictions. As a consequence, equivalent gold production decreased by 29% to 207,100oz in 2020 from 292,700oz in 2019 due to lower gold and copper grades processed, together with a lower price factor. The price factor was 3.5 in 2020 compared to 4.4 in 2019. It is estimated that Cerro Corona lost approximately 46Koz due to COVID-19 related stoppages and 22Koz due to the lower price factor, partially offset by ten additional production days as a result of the change in the production calendar in 2020.

The 2030 LoM strategy included the stockpiling of approximately 1.1Mt of low grade material in 2020, but as a result of the COVID-19 impact on production, low grade stockpiles were used to supplement the ore feed in 2020. The result of this was that low grade stockpiles only increased by 0.4Mt from 4.9Mt in 2019 to 5.3Mt in 2020. Cerro Corona will continue to build up low grade stockpiles over the next three years.

All-in cost per gold ounce increased by 51% to US$715/oz in 2020 from US$472/oz in 2019 mainly due to lower by-product credits as a result of lower copper sold, lower gold sold and additional COVID-19 related expenditure, partially offset by lower cost of sales before amortisation and depreciation and lower capital expenditure. All-in cost per equivalent ounce increased by 38% to US$1,119 per equivalent ounce in 2020 from US$810 per equivalent ounce in 2019 due to lower equivalent ounces sold, partially offset by lower cost of sales before amortisation and depreciation and lower capital expenditure.

Total capital expenditure decreased by 11% to US$50m in 2020 from US$56m in 2019 mainly due to the quarantine decreed by the government relating to COVID-19, which restricted the construction activities at the tailings dam and Arpon's waste storage facility. Additional camp and dining room facilities were constructed during 2020 at a cost of US$6 m in order to increase capacity at site as a result of the COVID-19 regulations implemented.

Cerro Corona generated net cash of US$84m in 2020 compared with US$86m in 2019.

Guidance

The estimate for 2021 is as follows:

• Gold equivalents produced ~ 220,000 ounces;
• Gold produced ~ 130,000 ounces;
• Copper tonnes produced ~ 24,700 tonnes;
• Sustaining capital expenditure ~ US$30m;
• Growth capital expenditure ~ US$28m;
• Copper price ~ US$5,800 per tonne;
• Gold price ~ US$1,600/oz;
• All-in sustaining costs ~ US$1,030/eq oz;
• Total all-in cost ~ US$1,190/eq oz;
• All-in sustaining costs ~ US$780/oz; and
• Total all-in cost ~ US$1,060/oz.

Group production and costs have been flexed for inherent operating risks which relate to all or some of the mines. The risk of stoppages due to COVID-19 has not been factored into any guidance estimates in the group. The extent to which COVID-19 impacts on either production or costs is indeterminable at this stage.

Chile

Salares Norte

US$151m was spent on Salares Norte in 2020, including exploration and project expenses of US$30m, initial capital expenditure of US$97m and prepayments accounting for the majority of the balance (refer table on Results for the Group). At the end of December 2020, engineering was 97.2% complete, ahead of the planned 90.0%.

At 31 December 2020, construction progress stood at 15.6% vs. plan of 9.9%, contributing towards total project progress of 27.0% coming in slightly ahead of plan of 24.4%. Camp Phase I construction was completed during Q3 2020 while Phase II construction was three months ahead of schedule at year-end. The mass earthworks contract was awarded at the end of May, with the contractor commencing activities on 21 September and completing the diversion channel earthworks and precast installation by year-end. The mining contractor completed mobilisation and began pioneering works on 1 October, as planned. Pre stripping of the pit and construction of the processing plant commenced during January 2021, in line with the project's construction schedule.

During 2020, a total of 17,504 district exploration metres were drilled, focusing on the Horizonte Project, while more work was also done on step-out potential at Agua Amarga North and Brecha West targets near the Salares Norte pit.

Guidance

The estimate for 2021 is as follows:

• Growth capital expenditure ~ US$508m; and
• Exploration expenditure ~ US$27m.

Australia region

* Includes Australia consolidated tax paid and working capital movements of A$186.3m (US$128.5m) in 2020 and A$74.7m (US$51.9m) in 2019, respectively.

Gold production increased by 11% to 1,017koz in 2020 from 914koz in 2019 mainly due to the inclusion of Gruyere for a full year in 2020, with the operation reaching commercial levels of production at the end of September 2019.

All-in cost decreased by 2% to A$1,388/oz (US$957/oz) in 2020 from A$1,418/oz (US$986/oz) in 2019.

The region produced net cash flow of A$723m (US$498m) in 2020 compared with A$199m (US$139m) in 2019. The 2019 cash flow included A$96m (US$67m) of growth capital at Gruyere.

St Ives

¹The comparatives for the year ended 31 December 2019 have been updated to the New Interpretation of the WGC AIC standard.

Gold production increased by 4% to 384,900oz in 2020 from 370,600oz in 2019 with an 8% increase in tonnes milled, partially offset by a 4% decrease in yield. The higher tonnes milled were mainly due to the ten additional production days as a result of the change in the production calendar.

At the underground operations, ore mined increased by 31% to 1.7Mt in 2020 from 1.3Mt in 2019 with Hamlet North brought into production early in 2020. Ore tonnes mined from Invincible increased to 1.3Mt from 1.0Mt in 2019 and Hamlet increased to 0.4Mt from 0.1Mt in 2019. Cave Rocks produced 0.2Mt in 2019 prior to closure. The overall underground grade mined increased by 29% to 5.26g/t in 2020 from 4.09g/t in 2019 with average grade of ore extracted from Hamlet North at 8.54g/t and 4.32g/t from the Invincible mine. Waste mined decreased by 17% to 772,000t in 2020 from 926,000t in 2019 due to decreased development from Invincible Mine.

At the open pits total ore tonnes mined decreased by 38% to 2.33Mt in 2020 from 3.75Mt in 2019. Stage 6 of the Invincible open pit was completed during 2019, bringing mining of the Invincible open pit to an end. In 2020, all open pit ore was sourced from the Neptune pit stages 5 and 6.

All-in cost decreased by 9% to A$1,266/oz (US$873/oz) in 2020 from A$1,385/oz (US$963/oz) in 2019 mainly due to lower capital expenditure and increased gold sold, partially offset by higher cost of sales before amortisation and depreciation and higher royalty tax (related to the higher gold price received).

Capital expenditure decreased by 25% to A$107m (US$74m) in 2020 from A$141m (US$98m) in 2019. During 2019 the Invincible South and Hamlet North underground mines were being developed.

The increase in sustaining capital expenditure and decrease in non-sustaining capital expenditure was due to the reclassification of development cost at Invincible South and Hamlet North Mines. Invincible South turned cash flow positive in Q4 of 2019 and Hamlet North in Q1 of 2020, which resulted in capital costs moving from non-sustaining to sustaining in accordance with World Gold Council guidelines.

St Ives generated pre-tax net cash flow of A$383m (US$264m) in 2020 compared with A$158m (US$110m) in 2019.

Guidance

The estimate for 2021 is as follows:

• Gold produced ~ 360,000 ounces;
• Sustaining capital expenditure ~ A$110m (US$83m);
• Growth capital expenditure ~ A$19m (US$14m);
• All-in sustaining costs ~ A$1,360/oz (US$1,020/oz); and
• Total all-in cost ~ A$1,410/oz (US$1,060/oz).

Group production and costs have been flexed for inherent operating risks which relate to all or some of the mines. The risk of stoppages due to COVID-19 has not been factored into any guidance estimates in the group. The extent to which COVID-19 impacts on either production or costs is indeterminable at this stage.

Agnew

¹ The comparatives for the year ended 31 December 2019 have been updated to the New Interpretation of the WGC AIC standard.

Gold production increased by 6% to 233,300oz in 2020 from 219,400oz in 2019 due to increased ore tonnes processed mainly due to the ten additional production days as a result of the change in the production calendar.

Underground waste mined increased by 11% to 750,000t in 2020 from 678,000t in 2019 following development of the Kath Lode at Waroonga mine in 2020.

Tonnes processed increased by 10% to 1.36Mt in 2020 from 1.23Mt in 2019, including 56,700t of stockpiled material containing 7,800oz. The increase in processed ore can be attributed to the additional production days and increased crusher availability through improved maintenance practices.

All-in cost decreased by 9% to A$1,528/oz (US$1,053/oz) in 2020 from A$1,656/oz (US$1,152/oz) in 2019 due to lower capital expenditure and increased gold sold, partially offset by increased cost of sales before amortisation and depreciation and higher royalty tax (related to the higher gold price received).

Capital expenditure decreased by 31% to A$75m (US$52m) in 2020 from A$109m (US$76m) in 2019 driven by a 79% decrease in non-sustaining capital expenditure to A$12m (US$9m) in 2020 from A$58m (US$41m) in 2019. Additional expenditure was incurred in 2019 to establish the new accommodation village A$32m (US$22m) and development of the Waroonga North decline A$5m (US$3m). In addition non sustaining exploration drilling reduced by A$6m (US$4m) from 2019.

Sustaining capital expenditure increased by 23% to A$63m (US$44m) in 2020 from A$51m (US$36m) in 2019 due to increased mine development at Waroonga.

The second stage of the electricity supply project was concluded in 2020, with EDL commissioning the 13MW battery plant in March 2020 and the 18MW wind farm in May 2020. More than 50% of Agnew's energy needs are now generated from renewable and low-carbon sources. The completed micro-grid consists of a 23MW power station which integrates solar with gas, diesel generation, the new battery plant and wind farm, it is owned and operated by EDL, who will recoup its investment via the electricity supply agreement with Agnew.

Agnew generated pre-tax net cash flow of A$192m (US$132m) in 2020 compared with A$16m (US$11m) in 2019.

Guidance

The estimate for 2021 is as follows:

• Gold produced ~ 240,000 ounces;
• Sustaining capital expenditure ~ A$72m (US$54m);
• Growth capital expenditure ~ A$41m (US$31m);
• All-in sustaining costs ~ A$1,450/oz (US$1,090/oz); and
• Total all-in cost ~ A$1,625/oz (US$1,220/oz).

Group production and costs have been flexed for inherent operating risks which relate to all or some of the mines. The risk of stoppages due to COVID-19 has not been factored into any guidance estimates in the group. The extent to which COVID-19 impacts on either production or costs is indeterminable at this stage. 

Capital expenditure is expected to increase by approximately A$38m in 2021 mainly due to a crusher circuit upgrade, development of exploration drives at New Holland and Waroonga, a ventilation upgrade at Waroonga and an increase in exploration drilling.

Granny Smith

¹The comparatives for the year ended 31 December 2019 have been updated to the New Interpretation of the WGC AIC standard

Gold production decreased by 2% to 269,600oz in 2020 from 274,800oz in 2019 due to 2% reduction in tonnes milled compared to 2019.

All-in cost increased by 11% to A$1,465/oz (US$1,010/oz) in 2020 from A$1,325/oz (US$922/oz) in 2019. With the mining of deeper ore zones additional cost was incurred for paste fill, support and hauling. Furthermore, additional contractor labour cost and employee flight and accommodation cost were incurred in 2020 due to the COVID-19 pandemic. Royalty tax was also higher as a result of the higher gold price received. The production cost increases and lower gold sold were partially off-set by lower capital expenditure in 2020.

Capital expenditure decreased by 7% to A$96m (US$66m) in 2020 from A$104m (US$72m) in 2019 due to decreased exploration drilling cost in 2020.

The increase in sustaining capital expenditure and decrease in non-sustaining capital expenditure was due to the reclassification of the Zone 110/120 areas which turned cash flow positive during H1 2020 which resulted in capital costs moving from non-sustaining to sustaining in accordance with World Gold Council guidelines.

Granny Smith generated pre-tax net cash flow of A$224m (US$155m) in 2020 compared with A$134m (US$93m) in 2019.

Guidance

The estimate for 2021 is as follows:

• Gold produced ~ 265,000 ounces;
• Sustaining capital expenditure ~ A$116m (US$87m);
• Growth capital expenditure ~ A$31m (US$23m);
• All-in sustaining costs ~ A$1,475/oz (US$1,110/oz); and
• Total all-in cost ~ A$1,600/oz (US$1,200/oz).

Group production and costs have been flexed for inherent operating risks which relate to all or some of the mines. The risk of stoppages due to COVID-19 has not been factored into any guidance estimates in the group. The extent to which COVID-19 impacts on either production or costs is indeterminable at this stage.

Capital expenditure is expected to increase by approximately A$51m in 2021 due to the development of a second decline into the Wallaby ore body allowing more efficient ore and waste extraction as well as expenditure on a new tailings facility.

Gruyere

Mine physicals in table on a 100% basis.
¹ The comparatives for the year ended 31 December 2019 have been updated to the New Interpretation of the WGC AIC standard.

Gold production increased by 161% to 258,200oz in 2020 from 99,100oz in 2019. Production commenced in July 2019, with commercial production achieved by the end of September 2019.

Total tonnes mined increased by 33% to 26.45Mt in 2020 from 19.85Mt in 2019. Ore tonnes mined increased by 20% to 8.1Mt in 2020 from 6.8Mt in 2019 and total waste tonnes mined increased by 40% to 18.4Mt in 2020 from 13.1Mt in 2019.

All-in cost decreased by 68% to A$1,350/oz (US$931/oz) in 2020 from A$4,170/oz (US$2,900/oz) in 2019. All-in cost for 2019 included construction capital up to achieving commercial levels of production.

Capital expenditure (on a 50% basis) decreased by 61% to A$41m (US$28m) in 2020 from A$104m (US$72m) in 2019. The 2019 capital expenditure was primarily incurred to complete the Gruyere construction project and stripping activities at the Gruyere pit.

Gruyere generated pre-tax net cash flow (on a 50% basis) of A$110m (US$76m) in 2020 compared with a cash outflow of A$80m (US$55m) in 2019.

Guidance

The estimate for 2021 is as follows:

• Gold produced ~ 280,000 ounces (100%);
• Sustaining capital expenditure ~ A$54m (US$41m) (50%);
• Growth capital expenditure ~ A$3m (US$2m) (50%);
• All-in sustaining costs ~ A$1,310/oz (US$985/oz); and
• Total all-in cost ~ A$1,330/oz (US$1,000/oz).

Group production and costs have been flexed for inherent operating risks which relate to all or some of the mines. The risk of stoppages due to COVID-19 has not been factored into any guidance estimates in the group. The extent to which COVID-19 impacts on either production or costs is indeterminable at this stage.