GOLD Fields avoided a repeat of last year’s freeze at Chile mine Salares Norte which helped it post a 24% increase in gold output for the six months ended June.
The $1.2bn project’s pipes froze amid the early onset of sub-zero weather in the Atacama last year just as it entered a critical ramp up. That contributed to a year-on-year reduction in production of just under 200,000 oz for the 2024 financial year.
Commenting in a second quarter and interim trading statement on Monday, however, Gold Fields said gold production had reached 1,14 million ounces (H1 2024: 918,000 oz) for the period. The company’s all-in costs decreased 5% year-on-year to $1,957/oz. All-in sustaining costs fell 4% to $1,682/oz, it said.
Combined with a $1,000 per ounce lift in the gold price, Gold Fields was set to produce first half earnings 153% to 181% higher. Normalised earnings would come in between $1.06 and $1.18/share ($0.40/share), it said.
Salares Norte produced 73,000 gold equivalent oz in the second quarter, representing a 46% increase from the 50,000 oz in the preceding quarter this year. Salares Norte remains on track to reach commercial production levels in the third quarter and steady-state production by the fourth quarter.
Gold Fields said previously Salares Norte was on track to achieve gold output of 325,000 to 375,000 oz this year at an all-in sustaining cost (AISC) of $975 to $1,125/oz. That AISC falls dramatically to $825 to $875/oz at full production of between 550,000 and 580,000 oz which is expected next year.
Gold Fields kept 2025 guidance unchanged at attributable gold equivalent production between 2.25 million and 2.45 million oz amid further increases in the second half – mainly Salares Norte and higher production at Gruyere and St Ives in Australia, and the Ghana mine, Tarkwa.
Gold Fields is due to publish its numbers on August 22.
