Gruyere JV backs Gold Fields production

Gold Fields delivered 1.09 million ounces of gold during the first half of this year, a marginal improvement from the 1.08 million ounces produced in the prior corresponding period after accounting for COVID-19 stoppages at the South African and Peruvian mines.

Gold Fields realised a 14 per cent increase in its Australian gold production, up from 435,000 ounces to 494,000 ounces during this period.

The company stated the inclusion of the Gruyere JV with Gold Road Resources played a large part in this as the mine reached commercial production in September last year.

The JV delivered a 21 per cent increase in output to 71,900 ounces in the June quarter from 59,600 ounces in the March quarter due to increased ore processed and a drawdown of gold-in-circuit.

“While some of our operations have been disrupted, we have managed to limit the impact on production for the group – a remarkable achievement indeed,” Gold Fields chief executive Nick Holland said.

“A bittersweet respite for gold companies has been the rise in this safe haven metal to record levels.

“… While we have seen new records for the gold price in recent weeks, we continue to run and plan our business at lower gold prices.”

Holland, who will retire from his position next year, expects the company to use a gold price assumption of $US1300 ($1803) an ounce up from the prevailing price of $US1200 an ounce at year-end.

Meanwhile at the Agnew mine in Western Australia, gold production took a 6 per cent dip to 105,900 ounces during the half-year period compared with that in 2019.

The drop was undeterred by a 24 per cent increase in Agnew’s production to 58,500 ounces in the June quarter from 47,400 ounces in the March quarter.

Gold Fields chairperson Cheryl Carolus, speaking at the company’s annual general meeting, said that the company would continue to invest in near-mine exploration at the Australian projects to secure their longevity.

“Our portfolio is now in a strong position to maintain a sustainable production of two million to 2.5 million ounces per year for the next 10 years,” she said.

Gold Fields has operating mines across America, Australia and Africa.