GOLD Fields said on Wednesday it hoped to renew the mining lease of Tarkwa after the group increased the Ghana mine’s gold reserves by 70%.
CEO Mike Fraser described the operation in the group’s third quarter numbers today as “a cornerstone” of the portfolio. Negotiations had begun with the West African nation which owns 10% of Tarkwa. Gold Fields also operates the depleting Damang mine in Ghana.
Tarkwa’s current lease was due to expire in April 2027.
Tarkwa’s mineral reserves increased to 7.4 million oz from 4.3 million oz previously while resources increased to 11.2 million oz from 8.9 million oz.
The key to extending Tarkwa’s life was the removal of “operational constraints”, but also Gold Fields’s decision to increase its group-wide reserve price to $2,000/oz from $1,500/oz previously. The resource price was increased to $2,300/oz from $1,725/oz.
“The revision was mainly due to the higher gold consensus prices, gold price trends and inflation,” said Fraser.
The gold price is up nearly 50% this year although it has retreated from record highs of about $4,300/oz in recent days. Bullion is currently trading at about $3,965/oz.
Gold Fields reported a strong production quarter underpinned by the continued ramp up of its Salares Norte mine in Chile.
Attributable third quarter production was 621,000 ounces, 6% higher than in the previous June quarter and 22% higher than in the third quarter last year.
All-in sustaining costs (AISC) of $1,557 per ounce were 10% better than in the previous quarter and eight percent improved year-on-year.
Gold Fields’s recovery from a disastrous 2024 was already established but today’s numbers provide further notice. Fraser said the group was on track to hit the upper end of its gold production forecast for the 2025 financial year of 2.45 million ounces (2.25 to 2.45 million oz).
Gold Fields also announced its COO Martin Preece had retired in August. Drafted in to run Gold Fields on an acting basis following the departure of Chris Griffith in 2022, Preece was credited with the turnaround of South Deep, Gold Fields’s sole South African mine. Francois Swanepoel, previously chief technical officer, is the new COO, said Fraser.
