[miningmx.com] – GOLD Fields said attributable output for the third (September) quarter would be 496,000 ounces, some 10% higher than in the second quarter, an increase analysts put down to a rebound at the group’s Ghana operations.
Gold Fields’ Tarkwa and Damang mines in Ghana were hit by strike action in the second quarter in which a total of 25,000 ounces of gold production was lost.
Prior to the takeover of the Yilgarn South mines in Australia from Barrick Gold Corporation, the Ghana assets comprised twice as much of total gold production after the unbundling of Gold Fields South African assets than before it (43%).
The increase in gold production is also expected to have a positive effect on the cost of gold extraction which Gold Fields said would be about 9% lower quarter-on-quarter.
All in costs as described in Gold Fields’ national cash expenditure (NCE) would come in at $1,080/oz, a 13% reduction on the second quarter all in cash costs and providing Gold Fields with some cash margin even at the current gold price of about $1,319/oz.
Gold Fields said it was “on track” to meet its full-year production guidance for 2013 of between 1.83 million ounces and 1.9 million ounces and for NCE of $1,240/oz which compares to an earlier full year NCE guidance of $1,360/oz reflecting Gold Fields’ cost reduction efforts.
