Gold Fields reports attributable production 12% higher at 510koz (QoQ)

JOHANNESBURG – Gold Fields in its Operational update for the quarter ended 30 September 2024 reports that

• Attributable production 12% higher (QoQ) at 510koz
• All-in sustaining costs (AISC) 3% lower (QoQ) at US$1,694/oz
• All-in costs (AIC) 5% lower (QoQ) at US$1,909/oz

Mike Fraser, CEO stated: “We recorded material improvement in our operating performance across the portfolio in the quarter under review, with notable increases in production delivered at Gruyere (+10% QoQ), Granny Smith (+16% QoQ), St Ives (+20% QoQ), South Deep (+23% QoQ), Tarkwa (+11% QoQ) and Cerro Corona (+14% QoQ).

Group attributable gold-equivalent production for Q3 2024 was therefore 12% higher QoQ at 510koz (Q2 2024: 454koz), but 6% lower YoY (Q3 2023: 542koz).

A further step-up is expected in Q4 2024, underpinned by continued improvements at Gruyere, St Ives, South Deep, Tarkwa and Cerro Corona, together with Salares Norte’s first meaningful quarterly contribution.”

Update on South Deep: Operational improvements in Q3

South Deep gold production increased by 23% (411kg) to 2,229kg (71.7koz) in Q3 2024 with higher production underpinned by improved stope availability (following positive progress made with backfill rehandling) and improved long hole stope drilling. Access to and turnaround of stopes was therefore markedly improved in the quarter.

The mine made significant progress in rehandling backfill material. Backfill leakage was also reduced and in Q3 was less than 1% of total backfill volumes placed.

Reef grade improved by 15% from 5.53g/t to 6.34g/t, as the mine gained access to previous distress areas and with the opening of the mining footprint.

Delivery of the Salares Norte ramp-up

Ramp-up of Salares Norte recommenced slightly ahead of the planned plant restart date of 30 September 2024 and the mine produced 198oz- eq during Q3 2024. The quarter under review was focused on unfreezing and purging remaining material in the primary circuits Installation of by-pass circuits early in the winter ensured that the main components of the plant could continue to run and circulate solution while the main circuit was being cleaned.

Despite experiencing a late snow event in early October 2024, ramp-up has continued according to plan and is expected to proceed into H1 2025, with commercial levels of production set to be achieved in Q2 2025. Steady state throughput on a monthly basis is expected in Q4 2025.

Guidance for Salares Norte remains unchanged for 2024 at 40koz-eq – 50koz-eq. 2025 gold-equivalent production is expected to be between 325koz-eq – 375koz-eq at AISC of US$975/oz-eq – US$1,125/oz-eq, depending on the ramp-up progress. 2026 is anticipated to be the first full year of steady-state production.

Continuing to improve the value and quality of its portfolio

On 12 August, Gold Fields announced an all-cash offer to acquire 100% of the outstanding shares of Osisko. Gold Fields paid C$1.93bn (US$1.39bn) net of cash received, in settlement of the transaction. The transaction was finalised on 25 October 2024, following receipt of all regulatory approvals and approval by 99.5% of the Osisko shareholders voting at a special shareholder meeting held on 17 October 2024.

The transaction consolidates Gold Fields’ 50% stake into full ownership and control of the Windfall Project and its entire exploration district (c.2,500km(2)) in Quebec, Canada. It also eliminates our existing obligation of a C$300m deferred cash payment and a C$75m exploration commitment, which formed part of the original JV agreement.

2024 guidance unchanged

Gold Fields expect a further step up in production in Q4 2024 and are keeping Group FY2024 guidance unchanged from that released with our interim results in August. This is underpinned by increased production at all our operations, with St Ives set to record the largest QoQ increase in Q4 as the Swiftsure and Invincible Footwall South open pits start contributing meaningfully.

Group attributable gold-equivalent production for 2024 is expected to be at the lower end of our guidance of 2.05Moz – 2.15Moz, with AISC of between US$1,580/oz – US$1,670/oz and AIC of between US$1,820/oz – US$1,910/oz.

This implies H2 2024 attributable gold-equivalent production of between 1.11Moz – 1.21Moz. H2 2024 unit costs are expected be lower than those reported for H1 2024, with AISC forecast between US$1,460/oz – US$1,580/oz and AIC set to be between US$1,630/oz – US$1,750/oz for H2 2024.