Ghana: notable increase in H2-2020 gold production
Gold Fields has reported that total production in Ghana decreased by 4% to 420koz for the six months ended 30 June 2020 from 438koz for the six months ended 30 June 2019 mainly due to decreased production at Damang following the completion of the Amoanda pit in H1 2019.
Encouragingly, mining in the main Damang pit transitioned through the bulk of the Huni Sandstone during H1 2020, with minimal volumes of Huni Sandstone remaining.
Mining at Damang will therefore be concentrated in the higher-grade and more consistent Tarkwa Phyllites during H2 2020, which should result in a notable increase in production at the mine during the second half of the year.
The percentage ore mined from the Tarkwa Phylite deposits increased to 35% in the June quarter from 20% in the March quarter, and is expected to be at 30% in the second half of the year.
All-in cost increased by 9% to US$1,093/oz for the six months ended 30 June 2020 from US$1,007/oz for the six months ended 30 June 2019.
The region produced net cash flow (excluding Asanko) of US$139m for the six months ended 30 June 2020 compared to US$72m for the six months ended 30 June 2019.
Gold Fields received US$37.5m on the redemption of preference shares from Asanko for the six months ended 30 June 2020, which if included, brings the total cash flow for the region for the six months ended 30 June 2020 to US$176.7m.
