By Christian Moess Laursen and Ian Walker
Gold Fields expects its full-year production to hit the lower end of its targeted range despite an improved sequential output.
The gold miner--one of the top producers worldwide--said Thursday that it expects production for the year to be in the lower end of its targeted 2.05 million and 2.15 million gold ounces range guided for in August.
The company has cut its production target twice this year on mounting operational issues. This has led a share fall of 15% over the year to date, making the company an outlier in the sector as shares of peers have surged on the back of historically high prices for the precious metal.
On Thursday, shares were down 5.55%, at 235.17 South African rand in midday trading.
However, Gold Fields delivered its highest quarterly output this year as it dug out 510,000 ounces of gold in the third quarter, compared with 454,000 ounces in the second quarter. A year ago, it produced 542,000 ounces.
The sequential rise was driven by sharp increases in production from most of its operations. In the second quarter, the Gruyere and Cerro Corona operations were both hit by bad weather, while South Deep and St Ives experienced backfill issues and delayed development of new open pits, respectively.
Meanwhile, a colder-than-expected winter in Chile caused a pause to development plans of the Salares Norte operation.
Gold Fields said Thursday that the ramp up of the mine restarted slightly ahead of plans in late September and is expected to continue into the first half of next year, with commercial production expected in the second quarter.
At full capacity, expected in 2026, the mine is set to produce 580,000 ounces of gold, making it one of the biggest in Gold Fields' portfolio.
For the fourth quarter, the company said it expects a step up in production, underpinned by increased production across operations, with St Ives in Australia set to record the largest increase.
It reiterated its full-year guidance for all-in sustaining costs of between $1,580 and $1,670 an ounce.
Quarterly all-in sustaining costs--a measure reflecting the full cost of gold mining--rose sharply to $1,694 an ounce compared with $1,381 an ounce for the comparable period last year and $1,751 an ounce in the second quarter.
In August, the company agreed to buy Osisko Mining for $1.57 billion, giving it full control of the Windfall project in Canada, which is among the largest gold deposits in the country.
Gold Fields said it is currently working on obtaining the necessary permitting and undertaking engineering work to take the project to the board for a final investment decision. Construction will commence following board approval and is expected to take around 18 to 24 months, it said.
Write to Christian Moess Laursen at christian.moess@wsj.com and to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
November 14, 2024 04:49 ET (09:49 GMT)
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