Secure third-quarter manufacturing pushes Gold Fields’ earnings larger

With an all-inclusive price (AIC) of $1 279/ozand sustaining price of $1 061/oz, JSE- and NYSE-listed Gold Fields produced 597 000 ozof gold within the third quarter ended September 30.

CEO Chris Griffith says the corporate – with 9 operations throughout South Africa, Ghana, Peru, Chile and Australia – had a secure third quarter, with attributable gold equal manufacturing of 597 000 oz – down 1% year-on-year and 4% quarter-on-quarter.

As such, Gold Fields is on observe to realize its full-year steering of manufacturing between 2.25-million and a pair of.29-million ounces.

In the meantime, when it comes to its acquisition of Yamana Gold, he says “good progress” is being made, with the corporate having obtained approval for the transaction from the Canadian authorities underneath the Funding Canada Act.

Gold Fields will maintain a basic assembly on November 22, throughout which shareholders will vote in favour or in opposition to the transaction.

In the meantime, through the third quarter, there was a rise within the group’s web debt steadiness, together with leases, to $997-million, from $851-million on the finish of the second quarter, primarily because of the interim dividend cost of $151-million.

“This interprets right into a web debt to earnings earlier than curiosity, taxes, depreciation and amortisation of 0.40 occasions, in contrast with 0.33 occasions at [the end of the second quarter],” says Griffith.

As such, the miner’s web debt steadiness, excluding leases, elevated to $603-million at interval’s finish, up from the $451-million on the finish of the second quarter.

Griffth says the South Deep mine, in South Africa, elevated its output by 2% quarter-on-quarter, with managed manufacturing totalling 88 000 ozat an AIC of R649 812/kg ($1 176/oz) and all-in sustaining prices (AISC) of R624 701/kg ($1 131/oz).

For the interval, Gold Fields’ AIC elevated by 1% year-on-year, however decreased by 7% quarter-on-quarter; whereas AISC elevated by 4% year-on-year, however decreased by 7% quarter-on-quarter.

“AIC would have decreased by 6% quarter-on-quarter to $1 145/ozfrom $1 220/ozif we exclude the numerous venture capital expenditure (capex) at [our Chile-based] Salares Norte,” says Griffith.

The Australian area produced 258 000 ozof gold at an AIC of A$1 707/oz ($1 159/oz) and AISC of A$1 517/oz ($1 029/oz), whereas on a managed foundation, the miner’s Ghana-based mines (Tarwa, Damang and Asanko) produced 215 000 ozat an AIC of $1 134/ozand an AISC of $1 101/oz.

The Peru-based Cerro Corona mine produced 60 000 ozof gold equal at an AIC of $1 035 per gold-equivalent ounce and an AISC of $948 per gold equal ounce.

Nevertheless, the Salares Norte mine was impacted by ongoing building actions and Covid-19 implications, along with extreme climate situations that flowed over from the second quarter.

As such, Gold Fields needed to spend $80.5-million on the venture – which is 82% full – through the quarter, comprising primarily $70.9-million in capex, $3.5-million in exploration, a $3.7-million funding in working capital and a realised lack of $3.7-million on the international change hedge.

This totalled $253-million spent on Salares Norte for the 12 months so far.

Griffith says mining price inflation has been larger than initially anticipated, however that the weaker change charges – of R16.49 to the greenback and A$0.69 to the greenback – have partially offset the upper price inflation.

When it comes to diversifying its vitality sources, he says “important progress” is being made within the rollout of renewable vitality at group operations, together with the $20-million 12 MW photo voltaic photovoltaic and 4.4 MW battery plant on the Australia-based Gruyere changing into totally operational in August.

As well as, the 50 MW Khanyisa photo voltaic PV plant at Gold Fields’ South Africa-based South Deep mine was totally commissioned in October, and had already achieved peak manufacturing of 47.5 MW. To this point, the Khanyisa plant has generated 8.3 GWh.

Similar Articles



Please enter your comment!
Please enter your name here



Most Popular