https://www.engineeringnews.co.za

Gold Fields advances projects to ‘underwrite a better future’

17th August 2018

By: Simone Liedtke

Creamer Media Social Media Editor & Senior Writer

     

Font size: - +

JOHANNESBURG (miningweekly.com) – NYSE- and JSE-listed Gold Fields aims to continue building new projects that will “underwrite a better future for [the miner] in terms of a longer life at lower costs”.

This, CEO Nick Holland said during a conference call on Thursday, is particularly important, given the volatility of the gold price.

While the integrity of the gold miner’s balance sheet remaining intact after funding cumulative project expenditure, he pointed out that the company’s international portfolio continues to remain strong, and that it is underpinning the company.

Gold Fields’ Damang reinvestment project, in Ghana, continued to track well against the plan for the six-month period to June 30, with total tonnes mined 26% higher year-on-year at 23.9-million tonnes, which Holland said was “slightly ahead of plan”.

Gold produced at Damang increased by 16% year-on-year to 89 500 oz, which was driven by higher grade material mined and processed during the half year.

Capital expenditure (capex) was 9% higher year-on-year at $73-million, with $61-million spent on capital waste stripping and the balance spent on engineering projects.

All-in sustaining costs (AISC) for the project decreased by 18% year-on-year to $829/oz while all-in costs (AIC) decreased by 7% year-on-year to $1 585/oz.

The potential at Damang’s Amoanda Phase 2 infill drilling and construction of the Far East tailing storage facility continues to increase, the miner said, which follows a successful drilling campaign which will provide additional flexibility to the operation when the main Damang pit starts production in the second quarter of 2019.

Meanwhile, first gold at the Gruyere gold project, in Australia, remains scheduled for the June 2019 quarter, Holland added.

However, the final forecast capital (FFC) is now estimated at A$621-million which includes scope changes and force majeure costs of A$30-million along with a contingence of the same amount.

This compares with the original budget of A$532-million, with A$329-million spent on the project to date. A$185-million is expected to be spent in the second part of this year.

Despite the increased capital for the project, Gold Fields maintains that the long-life, low-cost nature of Gruyere will subsequently improve the Gold Fields portfolio.

Overall project engineering and construction was 94% and 61% complete, respectively, with engineering, procurement and construction (EPC) 39% complete as at the end of July 2018.

Meanwhile, the feasibility study for Salares Norte, in Chile, is on track for completion at the end of this year.

The mine is expected to produce 3.5-million gold equivalent ounces over a ten-year life at an average AISC of about $575/oz and initial capex of $850-million.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Flameblock
Flameblock

FlameBlock is a proudly South African company that engineers, manufactures and supplies fire intumescent and retardant products to the fire...

VISIT SHOWROOM 
John Deere (Pty) Ltd
John Deere (Pty) Ltd

In 1958 John Deere Construction made its first introduction to the industry with their model 64 bulldozer.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.086 0.14s - 156pq - 2rq
Subscribe Now