Gold Fields' Q1 output hit by bad weather as new mine starts production

Gold Road Resources

02/04/2024 08:46

April 2 (Reuters) - Gold Fields  GFIJ.J  said on Tuesday
it had started production at its Chile mine after several
delays, but the group's first quarter output is seen 20% lower
due to operational challenges in South Africa as well as bad
weather in Australia and Peru.
    The Salares Notre mine delivered its first gold on March 28,
Gold Fields said in an update. The $1.2 billion Chile mine,
whose construction started in 2020 with production initially
expected early in 2023, missed several targets due to delays
caused by COVID-19 and bad weather.
    Salares Norte is vital to Gold Fields' long-term group
output target of around 2.8 million ounces annually. The mine is
expected to produce 250,000 ounces of gold this year, before
ramping up to 580,000 ounces in 2025.
    Gold Fields said gold production in the first quarter of
2024 was lower than expected, due to reduced access to the ore
body at South Africa's South Deep mine, where operations were
also affected by a mine fatality in January. The group expects
quarterly output between 460,000 and 470,000 ounces, 20% lower
compared to the first quarter of 2023.
    Gold Fields, however, maintained its annual production
target between 2.33 million and 2.43 million ounces for 2024.
    The company's Australian mines, which produced 44% of the
group's attributable output of 2.3 million ounces in 2023, were
hit by flooding which damaged roads and restricted access to
mining operations, particularly at Gruyere, a joint venture with
Gold Road Resources  GOR.AX .
    Gold Fields said bad weather had also limited mining
operations to lower-grade zones at its Cerro Corona mine in
Peru, impacting output.

 (Reporting by Nelson Banya; Editing by Emelia Sithole-Matarise)
 ((Nelson.Banya@thomsonreuters.com;))