Salares Norte project commences production delivering first gold
On 28 March 2024 the Salares Norte project commenced production delivering first gold, a significant milestone for the project that Gold Fields has taken from discovery, through resource and reserve development and project development into production over a 13 year journey.
Circuit A and Circuit B of the processing plant, which collectively account for 85% of the annual gold equivalent production, are being commissioned with operational control being handed over to the operational teams. Focus now is on ramp up of the project which is progressing, albeit slower than anticipated due to the impacts of recent early winter weather events. Gold equivalent production for 2024 is now expected to be between 220koz and 240koz at an AIC of US$1,840/eq oz – US$2,010/eq oz.
Average gold equivalent production for the first five full years of mine life (2025 – 2029) is expected to be 485koz per annum at an AIC of US$790/eq oz (in real 2024$ terms), while gold equivalent ounces produced over the life of mine (2025 – 2033) is expected to be 360koz per annum at an AIC of US$820/eq oz (in real 2024$ terms).
The total project capital cost remains in line with the guidance at US$1,180m – US$1,200m.
Salares Norte is expected to have one of the industry’s lower cost profiles and a payback period of less than three years at current gold prices contributing meaningfully to our future cash flows, particularly over the next 3 to 4 years. Gold Fields are undertaking extensive exploration drilling to identify further opportunities to extend the Salares Norte life of mine and expect to spend approximately US$23m on exploration drilling and greenfields opportunities in the area during 2024.
