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Gold Fields Limited (JSE:GFI) News - Operational update for the quarter ended 31 March 2022
Gold Fields Limited
Incorporated in the Republic of South Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN: ZAE 000018123
("Gold Fields" or "the Company")
Media Release
Operational update for the quarter ended 31 March 2022
SALIENT FEATURES
- 580,000 ounces of attributable gold production
- US$1,320 per ounce of all-in cost
JOHANNESBURG, 5 May 2022: Gold Fields Limited (NYSE & JSE: GFI) is pleased to provide an operational update
for the quarter ended 31 March 2022. Detailed financial and operational results are provided on a six-monthly
basis i.e. at the end of June and December.
STATEMENT BY CHRIS GRIFFITH, CEO
Solid quarter despite inflationary pressures
Q1 2022 was another challenging start to a year from a macro viewpoint. As we finally seemed to have overcome
the worst of Covid-19 around the world, the invasion of Ukraine by Russia has had a material impact. Despite the
devastation caused by any form of war, the world is being plagued with heightened inflation, driven by high oil
and gas prices and more broadly, higher commodity prices. While we expected the mining sector to be challenged
by high inflation at the start of the year, the impact has been worse than initially expected. High commodity
prices have driven inflation in energy costs; logistics and consumables.
Despite the global challenges, Gold Fields had a solid Q1 2022. Group attributable equivalent gold production
was 580koz, up 7% YoY (down 8% QoQ). Group production remains on track to deliver the guidance provided in February 2022.
Group AISC for the quarter was US$1,150/oz, up 7% YoY and up 9% QoQ. AIC for the Group was US$1,320/oz, 6% higher
YoY(down 4% QoQ) as project capital expenditure at Salares Norte continued into 2022. Net debt at the end of the
quarter was US$984m, compared to US$969m at the end of December 2021, primarily driven by the payment of the final
dividend of US$153m and a non-controlling interest holders dividend of US$14m. The Group generated free
cash flow of US$161m in Q1 2022. The net debt to EBITDA at the end of the quarter was 0.39x, largely unchanged QoQ.
The balance sheet remains in a very strong position.
Covid-19 update
We are pleased to report that we had no further Covid-19-related deaths among our workforce this year (up to end-April),
but we continue to apply comprehensive measures to prevent our employees and contractors from contracting the virus.
As at 30 April 2022, 86% of our global workforce had been fully vaccinated, while 46% had received at least one booster
vaccination. We have also continued with regular testing. Covid-19-related expenditure in Q1 totalled US$6.8m,
of which US$4.0m occurred in Chile to cover the logistics and accommodation requirements of the construction workforce
at the Salares Norte project.
Q1 2022 operational performance
The Australian region produced 258koz, up 10% YoY (down 8% QoQ) at AIC of A$1,714/oz (US$1,241/oz) (up 12% YoY and up
12% QoQ) and AISC of A$1,604/oz (US$1,161/oz) (up 11% YoY and up 15% QoQ).
Our mines in Ghana produced 210koz (including 45% of Asanko), down 5% YoY (down 3% QoQ), at AIC of US$1,213/oz
(up 13% YoY and up 8% QoQ) and AISC of US$1,181/oz (up 14% YoY and up 7% QoQ).
Production at Cerro Corona in Peru was 56koz (gold equivalent), up 21% YoY (down 30% QoQ) at AIC of US$1,009 per gold
equivalent ounce (up 21% YoY and up 6% QoQ) and AISC of US$963 per gold equivalent ounce (up 35% YoY and up 13% QoQ).
South Africa continued the strong momentum from H2 2021, with Q1 2022 production of 78koz, largely flat QoQ
(historically Q1 is seasonally weak), and 31% higher YoY. During the first quarter AIC was R705,316/kg (US$1,441/oz)
(up 2% YoY and down 3% QoQ) and AISC of R671,829/kg (US$1,373/oz) (up 1% YoY and down 3% QoQ). Productivity trends
continued to improve across key leading indicators during the quarter.
Update on Salares Norte
A protracted third wave of COVID-19 in Chile, which resulted in increased absenteeism, impacted the Salares Norte
project during Q1 2022, due to a lower number of personnel on site. By the end of the quarter, the third wave had
subsided and activity on the site increased. Total project progress at the end of March was 70%, compared to the 63%
at the end of Q4 2021. The project remains on track for first gold at the end of Q1 2023.
US$77.5m was spent on the project during the quarter, comprising US$63.0m in capex, US$9.2m in exploration, US$4.3m
in investment in working capital and US$2.8m in other cost, partially offset by a realised gain of US$1.8m on the FX
hedge. Given the elevated level of inflation, the contingency that was built into the capex forecast has started to
be eroded. Should inflation continue at current levels, we expect the overall project capex to be 5-7% higher than
expected. To-date, the Peso hedge has paid out US$40m, which will be credited to the cost of the project.
Pre-stripping of the Brecha Principal pit continues to progress well and volumes continued to track ahead of schedule
during the quarter. A total of 34Mt has been mined to-date.
Integrated Reporting
At the end of March, we released a suite of reports under the umbrella of the 2021 Integrated Annual Report (IAR).
These include the IAR itself, the Annual Financial Report (including our Governance Report), the Mineral Resource
and Reserve supplement and the Climate Change Report, produced in line with the recommendations of the Task Force
on Climate-related Financial Disclosure (TCFD). This was followed up at the end of April with the 2021 Report
to Stakeholders and the GRI Content Index.
South Deep and Gruyere solar plants
The South Deep 50MW solar plant is on track for commissioning in Q3 2022, with installation of the 101,000 solar
panels proceeding as scheduled. Almost 240 people are being employed in the construction phase of the project,
with BEE contractors carrying out most of the work.
At Gruyere, the construction of the 12MW solar plant and the 4.4MW battery storage facility has been completed
with the system now being performance tested and ramping up for commissioning, scheduled for June.
Upgrades from credit ratings agencies
On 6 April 2022, Moody's Investor Services affirmed Gold Fields' Baa3 issuer rating and changed the outlook to
stable from negative following the rating affirmation of South Africa's Ba2 government rating and change of outlook
to stable from negative.
On 28 April 2022, S&P Global Ratings upgraded Gold Fields credit rating from 'BBB-' from 'BB+' and the debt ratings
on the Group's senior unsecured notes. S&P also raised to 'A-3' from 'B' the short-term rating on the Group and
affirmed its 'zaAAA/zaA-1+' South African national scale ratings.
FY 2022 guidance unchanged
Given the solid operational performance in Q1 2022, we are on track to achieve the Group production guidance provided
in February 2022. As indicated earlier, inflation has been higher than initially expected as shown in the table below,
however, the higher-than-expected copper by-production credit has partially offset the higher cost inflation.
Consequently, we leave our cost guidance for the year unchanged.
For 2022, attributable gold equivalent production (excluding Asanko) is expected to be between 2.25Moz and 2.29Moz
(2021 comparable 2.25Moz). Including Asanko, attributable gold equivalent production is expected to be between 2.29Moz
and 2.34Moz. AISC is expected to be between US$1,140/oz and US$1,180/oz, with AIC expected to be US$1,370/oz to
US$1,410/oz. If we exclude the very significant project capex at Salares Norte, AIC is expected to be US$1,230/oz
to US$1,270/oz. The exchange rates used for our 2022 guidance are: R/US$15.55 and US$/A$0.76.
2022 Effective mining inflation forecast
Forecast inflation as at February 2022 Forecast inflation as at April 2022
Australia 9.4% 10.2%
Ghana 10.9% 12.2%
Peru 6.8% 10.5%
South Africa 11.2% 8.6%
Chile 2.7% 8.9%
Chris Griffith
Chief Executive Officer
5 May 2022
Key statistics
United States Dollars
Quarter
March December March
Figures in millions unless otherwise stated 2022 2021 2021
Gold produced* oz (000) 580 631 541
Tonnes milled/treated 000 10,520 10,586 10,378
Revenue (excluding Asanko) US$/oz 1,884 1,805 1,778
Cost of sales before gold inventory change and
amortisation and depreciation (excluding Asanko) US$/tonne 47 48 43
All-in sustaining costs US$/oz 1,150 1,055 1,078
Total all-in cost US$/oz 1,320 1,369 1,249
Net debt US$m 984 969 1,224
Net debt (excluding lease liabilities) US$m 559 553 788
Net debt to adjusted EBITDA ratio US$m 0.39 0.40 0.59
* Gold produced in this table is attributable and includes Gold Fields' share of 45% in Asanko.
At 31 March 2022, all operations are wholly owned except for Tarkwa and Damang in Ghana (90.0%), South Deep
in South Africa (96.43%), Cerro Corona in Peru (99.5%), Gruyere JV (50%) and Asanko JV (45% equity share).
Gold produced and sold throughout this report includes copper gold equivalents of approximately 5% of Group production.
All-in sustaining costs and total all-in cost in the key statistics table include all Gold Fields operations, projects
and offices. The tables on pages 4 and 5 present only the mining operations. See reconciliation below.
Figures may not add as they are rounded independently.
All-in cost reconciliation
United States Dollars
Quarter
March December March
Figures in millions unless otherwise stated 2022 2021 2021
All-in cost for mining operations (page 4) US$/oz 1,198 1,090 1,132
Salares Norte US$/oz 109 240 110
Corporate and other US$/oz 13 39 7
Total all-in cost US$/oz 1,320 1,369 1,249
Currencies
Quarter
March December March
2022 2021 2021
US$1-ZAR 15.22 15.43 14.96
A$1-US$ 0.72 0.73 0.77
Stock data for the three months ended 31 March 2022
Number of shares in issue NYSE - (GFI)
- at end March 2022 891,244,132 Range - Quarter US$9.84 - US$16.71
- average for the quarter 890,029,351 Average volume - Quarter 9,596,414 shares/day
Free float 100 per cent JSE LIMITED - (GFI)
ADR ratio 1:1 Range - Quarter ZAR154.90 - ZAR254.41
Bloomberg/Reuters GFISJ/GFLJ.J Average volume - Quarter 3,802,753 shares/day
Salient features and cost benchmarks
United States Dollars
Total South West South
Total Mine African Africa America
Mine operations and Region Region Region
operations projects
and projects excluding Ghana Peru Chile
including equity Salares
Figures are in millions equity accounted accounted South Asanko* Cerro Norte
unless otherwise stated Joint Venture Joint Venture Deep Total Tarkwa Damang 45% Corona Project
Operating results
Ore milled/treated
(000 tonnes) March 2022 10,520 9,853 734 5,286 3,447 1,171 667 1,729 -
Dec 2021 10,586 9,924 695 5,265 3,401 1,201 663 1,736 -
March 2021 10,378 9,728 707 5,269 3,436 1,183 650 1,635 -
Yield (grams per tonne) March 2022 1.8 1.8 3.3 1.2 1.2 1.6 0.9 1.0 -
Dec 2021 1.9 2.0 3.4 1.3 1.2 1.7 1.1 1.4 -
March 2021 1.7 1.7 2.6 1.3 1.1 1.9 1.3 0.9 -
Gold produced March 2022 602.0 582.9 78.0 209.5 128.5 62.0 19.1 56.1 -
(000 managed equivalent ounces) Dec 2021 653.6 630.9 76.8 216.2 129.1 64.5 22.6 79.6 -
March 2021 562.9 535.9 59.7 221.1 122.5 71.7 27.0 46.4 -
Gold produced March 2022 579.9 560.8 75.2 190.5 115.7 55.8 19.1 55.8 -
(000 attributable equivalent ounces) Dec 2021 631.1 608.4 74.0 196.9 116.2 58.0 22.6 79.2 -
March 2021 541.3 514.3 57.6 201.8 110.3 64.5 27.0 46.2 -
Gold sold
(000 managed equivalent ounces) March 2022 602.4 583.5 78.0 209.3 128.5 62.0 18.9 59.8 -
Dec 2021 656.8 633.6 76.8 216.7 129.1 64.5 23.1 85.0 -
March 2021 558.1 529.7 57.2 222.5 122.5 71.7 28.3 52.6 -
Cost of sales before amortisation March 2022 (477.2) (452.8) (81.3) (151.2) (89.7) (37.1) (24.4) (46.4) -
and depreciation (million) Dec 2021 (457.5) (429.5) (71.4) (147.6) (79.6) (40.0) (28.0) (51.0) -
March 2021 (433.1) (406.2) (70.2) (138.9) (73.2) (38.8) (26.9) (49.9) -
Cost of sales before gold March 2022 46 47 110 32 25 47 39 27 -
inventory change and amortisation Dec 2021 48 48 109 37 32 47 46 33 -
and depreciation (dollar per tonne) March 2021 43 43 101 30 21 45 45 25 -
Sustaining capital March 2022 (161.0) (160.5) (23.4) (68.7) (57.2) (10.9) (0.5)& (2.9) -
(million) Dec 2021 (165.4) (162.1) (31.1) (56.4) (45.8) (7.3) (3.3)& (11.6) -
March 2021 (113.2) (111.5) (8.3) (55.0) (50.7) (2.6) (1.7)& (2.2) -
Non-sustaining capital (million) March 2022 (89.8) (89.2) (5.3) (3.2) - (2.6) (0.6) (2.2) (63.0)
Dec 2021 (176.6) (174.4) (6.0) (2.4) - (0.2) (2.2) (7.9) (134.3)
March 2021 (87.4) (84.0) (3.2) (5.9) - (2.5) (3.4) (4.6) (58.6)
Total capital expenditure (million) March 2022 (250.8) (249.7) (28.7) (71.9) (57.2) (13.5) (1.1) (5.1) (63.0)
Dec 2021 (342.0) (336.5) (37.1) (58.8) (45.8) (7.5) (5.5) (19.5) (134.3)
March 2021 (200.6) (195.5) (11.5) (60.9) (50.7) (5.1) (5.1) (6.8) (58.6)
All-in sustaining costs March 2022 1,136 1,122 1,373 1,181 1,269 891 1,538 (129) -
(dollar per ounce) Dec 2021 1,016 995 1,401 1,099 1,127 885 1,539 (138) -
March 2021 1,071 1,066 1,388 1,038 1,190 733 1,158 136 -
Total all-in cost
(dollar per ounce) March 2022 1,198 1,183 1,441 1,213 1,269 967 1,639 (27) -
Dec 2021 1,090 1,067 1,479 1,123 1,127 915 1,680 63 -
March 2021 1,132 1,121 1,444 1,078 1,190 791 1,323 358 -
Average exchange rates were US$1 = R15.22, US$1 = R15.43 and US$1 = R14.96 for the March 2022, December 2021 and March
2021 quarters, respectively.
The Australian/US Dollar exchange rates were A$1 = US$0.72, A$1 = US$0.73 and A$1 = US$0.77 for the March 2022,
December 2021 and March 2021 quarters, respectively.
Figures may not add as they are rounded independently.
* Equity accounted Joint Venture.
& Includes Gold Fields 45% share of deferred stripping of US$0.0m and US$0.4m (100% basis US$0.0m and US$0.8m) for the
March 2022 and December 2021 quarters, respectively.
South
African
United States Dollars Australian Dollars Rand
South
Australia Australia Africa
Region Region Region
Australia Australia
Figures are in millions Granny Gruyere Granny Gruyere South
unless otherwise stated Total St Ives Agnew Smith 50% Total St Ives Agnew Smith 50% Deep
Operating results
Ore milled/treated
(000 tonnes) March 2022 2,772 1,021 292 389 1,071 2,772 1,021 292 389 1,071 734
Dec 2021 2,891 1,015 320 438 1,118 2,891 1,015 320 438 1,118 695
March 2021 2,767 1,027 297 385 1,058 2,767 1,027 297 385 1,058 707
Yield
(grams per tonne) March 2022 2.9 2.9 6.7 5.3 1.0 2.9 2.9 6.7 5.3 1.0 3.3
Dec 2021 3.0 3.4 5.6 5.6 0.9 3.0 3.4 5.6 5.6 0.9 3.4
March 2021 2.6 2.8 5.3 4.7 1.0 2.6 2.8 5.3 4.7 1.0 2.6
Gold produced March 2022 258.4 93.9 63.0 65.9 35.6 258.4 93.9 63.0 65.9 35.6 2,425
(000 managed equivalent ounces) Dec 2021 281.0 110.5 57.5 79.1 33.9 281.0 110.5 57.5 79.1 33.9 2,387
March 2021 235.7 94.0 50.9 57.6 33.1 235.7 94.0 50.9 57.6 33.1 1,858
Gold produced
(000 attributable equivalent ounces) March 2022 258.4 93.9 63.0 65.9 35.6 258.4 93.9 63.0 65.9 35.6 2,338
Dec 2021 281.0 110.5 57.5 79.1 33.9 281.0 110.5 57.5 79.1 33.9 2,302
March 2021 235.7 94.0 50.9 57.6 33.1 235.7 94.0 50.9 57.6 33.1 1,792
Gold sold March 2022 255.3 95.9 64.5 59.7 35.1 255.3 95.9 64.5 59.7 35.1 2,425
(000 managed equivalent ounces) Dec 2021 278.2 108.6 57.1 79.1 33.5 278.2 108.6 57.1 79.1 33.5 2,387
March 2021 225.8 88.6 47.9 57.1 32.2 225.8 88.6 47.9 57.1 32.2 1,778
Cost of sales before amortisation March 2022 (198.3) (79.4) (49.0) (46.1) (23.7) (273.9) (109.7) (67.7) (63.7) (32.7) (1,237.6)
and depreciation (million) Dec 2021 (187.5) (76.6) (41.2) (49.8) (19.9) (257.0) (104.7) (56.6) (68.3) (27.4) (1,107.2)
March 2021 (174.1) (65.8) (42.5) (47.5) (18.3) (225.3) (85.2) (55.0) (61.4) (23.7) (1,049.9)
Cost of sales before gold inventory
change and amortisation and March 2022 69 63 162 136 25 95 87 223 188 34 1,679
depreciation (dollar per tonne) Dec 2021 63 65 135 112 22 87 90 186 153 30 1,694
March 2021 64 61 142 127 21 82 79 184 164 27 1,505
Sustaining capital (million) March 2022 (66.0) (28.1) (15.5) (13.3) (9.1) (91.2) (38.8) (21.5) (18.3) (12.6) (356.4)
Dec 2021 (66.3) (21.1) (13.1) (21.6) (10.5) (90.9) (29.0) (18.1) (29.3) (14.5) (468.1)
March 2021 (47.7) (17.4) (10.8) (8.6) (10.9) (61.8) (22.6) (13.9) (11.1) (14.1) (124.0)
Non-sustaining capital (million) March 2022 (16.0) (0.2) (8.6) (7.3) - (22.2) (0.2) (11.8) (10.1) - (81.2)
Dec 2021 (25.9) (3.8) (11.9) (9.9) (0.3) (35.3) (5.2) (16.1) (13.6) (0.4) (92.4)
March 2021 (15.1) (2.8) (6.2) (6.0) (0.1) (19.5) (3.6) (8.0) (7.8) (0.1) (48.1)
Total capital expenditure (million) March 2022 (82.0) (28.3) (24.1) (20.6) (9.1) (113.4) (39.0) (33.3) (28.4) (12.6) (437.6)
Dec 2021 (92.2) (24.9) (25.0) (31.5) (10.8) (126.2) (34.2) (34.2) (42.9) (14.9) (560.5)
March 2021 (62.8) (20.2) (17.0) (14.6) (11.0) (81.3) (26.2) (21.9) (18.9) (14.2) (172.1)
All-in sustaining costs March 2022 1,161 1,217 1,142 1,133 1,088 1,604 1,681 1,577 1,565 1,503 671,829
(dollar per ounce) Dec 2021 1,019 978 1,091 1,007 1,058 1,397 1,339 1,500 1,378 1,453 691,362
March 2021 1,115 1,027 1,271 1,145 1,068 1,442 1,329 1,645 1,482 1,382 667,614
Total all-in cost March 2022 1,241 1,244 1,285 1,279 1,088 1,714 1,718 1,775 1,767 1,503 705,316
(dollar per ounce) Dec 2021 1,112 1,013 1,299 1,133 1,067 1,524 1,387 1,782 1,550 1,465 730,076
March 2021 1,181 1,058 1,400 1,250 1,070 1,529 1,370 1,812 1,618 1,385 694,685
Average exchange rates were US$1 = R15.22, US$1 = R15.43 and US$1 = R14.96 for the March 2022, December 2021 and March 2021
quarters, respectively.
The Australian/US Dollar exchange rates were A$1 = US$0.72, A$1 = US$0.73 and A$1 = US$0.77 for the March 2022, December 2021 and March 2021
quarters, respectively.
Figures may not add as they are rounded independently.
Review of Operations
Quarter ended 31 March 2022 compared with quarter ended 31 December 2021
Figures may not add as they are rounded independently
South Africa region
South Deep
March Dec %
2022 2021 Variance
000
Ore mined tonnes 364 375 (3)%
000
Waste mined tonnes 63 53 19%
000
Total tonnes tonnes 427 428 -%
Grade mined - underground reef g/t 6.32 6.66 (5)%
Grade mined - underground total g/t 5.39 5.83 (8)%
Gold mined kg 2,303 2,499 (8)%
000'oz 74.0 80.3 (8)%
Destress m 1,186 1,043 14%
Development m 1,562 1,447 8%
Secondary support m 3,906 3,814 2%
Backfill m3 86,418 93,949 (8)%
000
Ore milled - underground reef tonnes 345 354 (3)%
000
Ore milled - underground waste tonnes 57 53 8%
000
Total underground tonnes milled tonnes 402 407 (1)%
000
Ore milled - surface tonnes 332 288 15%
000
Total tonnes milled tonnes 734 695 6%
Yield - underground reef g/t 6.92 6.65 4%
Surface yield g/t 0.11 0.11 -%
Total yield g/t 3.31 3.44 (4)%
Gold produced kg 2,425 2,387 2%
000'oz 78.0 76.8 2%
Gold sold kg 2,425 2,387 2%
000'oz 78.0 76.8 2%
AISC R/kg 671,829 691,362 (3)%
US$/oz 1,373 1,401 (2)%
AIC R/kg 705,316 730,076 (3)%
US$/oz 1,441 1,479 (3)%
Sustaining capital expenditure Rm 356.4 468.1 (24)%
US$m 23.4 31.1 (25)%
Non-sustaining capital expenditure Rm 81.2 92.4 (12)%
US$m 5.3 6.0 (12)%
Total capital expenditure Rm 437.6 560.5 (22)%
US$m 28.7 37.1 (23)%
Gold production increased by 2% to 2,425kg (78,000oz) in the March quarter from 2,387kg (76,800oz) in the December
quarter as a result of a release of GIP in the March quarter. Total tonnes mined decreased marginally to 427kt in
the March quarter from 428kt in the December quarter. Total gold mined decreased by 8% to 2,303kg (74,000oz) in the
March quarter from 2,499kg (80,300oz) in the December quarter mainly as a result of lower reef grade mined which decreased
by 5% to 6.32g/t when compared to the previous quarter of 6.66g/t driven by a slight change in mining mix.
Reef yield increased by 4% to 6.92g/t in the March quarter from 6.65g/t in the December quarter due to the
quarter-on-quarter GIP movement.
Total underground tonnes milled decreased marginally by 1% to 402kt in the March quarter from 407kt in the December
quarter. Surface tonnes milled increased by 15% to 332kt in the March quarter from 288kt in the December quarter.
Development increased by 8% to 1,562 metres in the March quarter from 1,447 metres in the December quarter and
similarly destress increased by 14% to 1,186 metres in the March quarter from 1,043 metres in the December quarter
as a result of an increase in rig production rates, which is in line with the production ramp-up plan.
Secondary support installed increased by 2% to 3,906 metres in the March quarter from 3,814 metres in the December
quarter, which is in line with the increase in development and destress performance. Backfill decreased by 8% to
86,418m3 in the March quarter from 93,949m3 in the December quarter due to pumping infrastructure constraints and
stope availability.
All-in cost decreased by 3% to R705,316/kg (US$1,441/oz) in the March quarter from R730,076/kg (US$1,479/oz)
in the December quarter mainly due to an increase in gold sold and a decrease in capital expenditure (solar plant
and equipment deliveries), partially offset by an increase in cost of sales before amortisation and depreciation
compared to the December quarter.
Total capital expenditure decreased by 22% to R438m (US$29m) in the March quarter from R561m (US$37m) in the December
quarter.
Sustaining capital expenditure decreased by 24% to R356m (US23m) in the March quarter from R468m (US$31m) in the
December quarter mainly due to lower equipment spend and lower spending on the Doornpoort tailings facility,
partially offset by higher spending on the solar plant.
Non-sustaining capital expenditure decreased by 12% to R81m (US$5m) in the March quarter from R92m (US$6m)
in the December quarter due to a decrease in spending on the ground handling systems in the new mine during the
current quarter.
With the President of South Africa announcing that licensing for electricity self-generation will increase to 100MW,
South Deep applied to NERSA for approval to increase the solar project output capacity from 40MW to 60MW. South Deep
obtained approval for such increase on 16 March 2022. Now that NERSA has approved the expansion, Eskom will carry out
the work required to allow for the self-generation of 50MW and to eventually expand to 60MW. Year to date expenditure
on the plant is R164m (US$11m). Total year forecast expenditure on the plant is R554m (US$38m). Total expenditure to
build and commission the plant is estimated to be R700m (US$47m).
The construction of the plant is currently 9% behind plan, due to global supply constraints and securing shipping
slots, however, the team remains confident that the plant will still "Go-Live" in August 2022 to supply electricity
as planned.
West Africa region
Ghana
Tarkwa
March Dec %
2022 2021 Variance
000
Ore mined tonnes 3,283 3,545 (7)%
000
Waste (Capital) tonnes 10,931 9,504 15%
000
Waste (Operational) tonnes 7,845 8,111 (3)%
000
Total waste mined tonnes 18,776 17,615 7%
000
Total tonnes mined tonnes 22,059 21,160 4%
Strip ratio waste/ore 5.7 5.0 14%
Grade mined g/t 1.16 1.31 (11)%
Gold mined 000'oz 122.9 149.8 (18)%
000
Tonnes milled tonnes 3,447 3,401 1%
Yield g/t 1.16 1.18 (2)%
Gold produced 000'oz 128.5 129.1 -%
Gold sold 000'oz 128.5 129.1 -%
AISC US$/oz 1,269 1,127 13%
AIC US$/oz 1,269 1,127 13%
Sustaining capital expenditure US$m 57.2 45.8 25%
Non-sustaining expenditure US$m - - -%
Total capital expenditure US$m 57.2 45.8 25%
Gold production decreased marginally to 128,500oz in the March quarter from 129,100oz in the December quarter due
to lower yield, partially offset by higher tonnes milled. Yield decreased by 2% to 1.16g/t in the March quarter from
1.18g/t in the December quarter due to lower grade ore mined and processed. Ex-pit ore processed in the March quarter
was 3.1Mt at 1.16g/t compared with 2.9Mt at 1.31g/t in the December quarter.
Total tonnes mined, including capital waste stripping, increased by 4% to 22.1Mt in the March quarter from 21.2Mt
in the December quarter in line with the mining sequence. Ore mined decreased by 7% to 3.3Mt in the March quarter
from 3.5Mt in the December quarter due to focus on capital waste stripping to expose ore. Capital waste stripping
increased by 15% to 10.9Mt in the March quarter from 9.5Mt in the December quarter in line with the 2022 production
schedule. Operational waste decreased by 3% to 7.8Mt in the March quarter from 8.1Mt in the December quarter due to
focus on capital waste stripping. Strip ratio increased by 14% to 5.7 in the March quarter from 5.0 in the December
quarter due to the higher capital strip in line with the mining schedule. Gold mined decreased by 18% to 122.9koz
in the March quarter from 149.8koz in the December quarter due to lower ore tonnes and grade mined.
Tonnes processed increased by 1% to 3,447kt in the March quarter from 3,401kt in the December quarter due to improved
overall plant effectiveness.
All-in cost increased by 13% to US$1,269/oz in the March quarter from US$1,127/oz in the December quarter due to higher
cost of sales before amortisation and depreciation as a result of higher mining cost, lower gold sold and higher
capital expenditure.
Capital expenditure increased by 25% to US$57m in the March quarter from US$46m in the December quarter mainly due
to higher capital waste tonnes mined and higher mining unit cost.
Damang
March Dec %
2022 2021 Variance
000
Ore mined tonnes 1,875 2,046 (8)%
000
Waste (Capital) tonnes 1,662 810 105%
000
Waste (Operational) tonnes 3,005 3,672 (18)%
000
Total waste mined tonnes 4,667 4,482 4%
000
Total tonnes mined tonnes 6,542 6,528 -%
Strip ratio waste/ore 2.5 2.2 14%
Grade mined g/t 1.53 1.54 (1)%
Gold mined 000'oz 92.3 101.4 (9)%
000
Tonnes milled tonnes 1,171 1,201 (2)%
Yield g/t 1.64 1.67 (2)%
Gold produced 000'oz 62.0 64.5 (4)%
Gold sold 000'oz 62.0 64.5 (4)%
AISC US$/oz 891 885 1%
AIC US$/oz 967 915 6%
Sustaining capital expenditure US$m 10.9 7.3 49%
Non-sustaining expenditure US$m 2.6 0.2 1,200%
Total capital expenditure US$m 13.5 7.5 80%
Gold production decreased by 4% to 62,000oz in the March quarter from 64,500oz in the December quarter due
to lower yield and throughput. Yield decreased by 2% to 1.64g/t in the March quarter from 1.67g/t in the December
quarter due to movements in gold-in-circuit and lower recovery.
Total tonnes mined remained similar in the March quarter at 6.5Mt. Ore tonnes mined decreased by 8% to 1.9Mt
in the March quarter from 2.0Mt in the December quarter. The decrease in ore tonnes mined is attributable to the
change in grade control modelling which has enhanced the definition of the geometry of the mineralisation resulting
in lower ore tonnage at a relatively higher grade. In addition, the unrealised scattered mineralisation within the
Huni sandstone lithology at Huni pit resulted in further lower ore tonnage. Mined grade decreased by 1% to 1.53g/t
in the March quarter from 1.54g/t in the December quarter in line with plan. Operational waste tonnes mined decreased
by 18% to 3.0Mt in the March quarter from 3.7Mt in the December quarter in line with the schedule. Capital waste tonnes
mined increased by 105% to 1.7Mt in the March quarter from 0.8Mt in the December quarter due to the increased mining
rate at Huni pit.
Strip ratio increased by 14% to 2.5 in the March quarter from 2.2 in the December quarter due to the increased waste
stripping in the Huni pit.
All-in cost increased by 6% to US$967/oz in the March quarter from US$915/oz in the December quarter mainly due
to lower gold sold and higher capital expenditure on the Huni waste stripping, partially offset by lower cost of sales
before amortisation and depreciation.
Total capital expenditure increased by 80% to US$14m in the March quarter from US$8m in the December quarter.
Sustaining capital expenditure increased by 49% to US$11m in the March quarter from US$7m in the December quarter
due to the Huni waste stripping. Non-sustaining capital expenditure increased to US$3m in the March quarter from US$0m
in the December quarter due to the timing of the Far East Tailings Storage Facility (FETSF) stage three raise.
Asanko (Equity accounted Joint Venture)
All figures in table on a 100% basis
March Dec %
2022 2021 Variance
000
Ore mined tonnes 1,075 1,623 (34)%
000
Waste (Capital) tonnes - 517 (100)%
000
Waste (Operational) tonnes 5,279 8,235 (36)%
000
Total waste mined tonnes 5,279 8,752 (40)%
000
Total tonnes mined tonnes 6,354 10,375 (39)%
Strip ratio waste/ore 4.9 5.4 (9)%
Grade mined g/t 1.49 1.24 20%
Gold mined 000'oz 51.6 64.9 (20)%
000
Tonnes milled tonnes 1,482 1,472 1%
Yield g/t 0.89 1.06 (16)%
Gold produced 000'oz 42.3 50.3 (16)%
Gold sold 000'oz 41.9 51.4 (18)%
AISC US$/oz 1,538 1,539 -%
AIC US$/oz 1,639 1,680 (2)%
Sustaining capital expenditure US$m 1.1 7.3 (85)%
Non-sustaining expenditure US$m 1.4 5.0 (72)%
Total capital expenditure US$m 2.5 12.3 (80)%
Gold production decreased by 16% to 42,300oz (100% basis) in the March quarter from 50,300oz (100% basis)
in the December quarter mainly due to lower yield. The lower yield is mainly due to recovery challenges experienced
in treating the Esaase fresh and transition ore characterised by high organic carbon content and refractory.
The mill feed in the March quarter was sourced primarily from Esaase pit, Akwasiso cut 3 and lower grade stockpiles.
Total tonnes mined decreased by 39% to 6.4Mt in the March quarter from 10.4Mt in the December quarter. Total waste
tonnes mined decreased by 40% to 5.3Mt in the March quarter from 8.8Mt in the December quarter due to a reduced
strip ratio at Esaase pit in preparation to suspend mining activities. Ore tonnes mined decreased by 34% to 1.1Mt
in the March quarter from 1.6Mt in the December quarter with reduced ore tonnes from Esaase pit. Mining at Akwasiso
cut 3 during the March quarter contributed to the ore processed.
All-in cost decreased by 2% to US$1,639/oz in the March quarter from US$1,680/oz in the December quarter mainly
due to lower capital expenditure, partially offset by lower gold sold.
Total capital expenditure decreased by 80% to US$3m in the March quarter from US$12m in the December quarter.
Sustaining capital expenditure decreased by 85% to US$1m in the March quarter from US$7m in the December quarter
mainly due the completion of TSF Stage 6 raise in the December quarter. Non-sustaining capital expenditure decreased
by 72% to US$1m in the March quarter from US$5m in the December quarter mainly due to reduced expenditure as planned.
As per the production guidance provided by Galiano Gold at the end of March 2022, while technical work to support a
mineral reserve is ongoing, mining will continue at Akwasiso cut 3 and Esaase cut 3 until their depletion (expected
in Q2 2022). Following this, processing of ore will continue at full plant capacity (5.8Mtpa) by processing some
of the 9.5Mt existing stockpiles. Full year gold production guidance (100% basis) is estimated at between 100Koz-120Koz.
South America region
Peru
Cerro Corona
March Dec %
2022 2021 Variance
000
Ore mined tonnes 2,293 3,047 (25)%
000
Waste mined tonnes 3,634 3,167 15%
000
Total tonnes mined tonnes 5,927 6,214 (5)%
Grade mined - gold g/t 0.66 0.78 (15)%
Grade mined - copper per cent 0.39 0.43 (9)%
Gold mined 000'oz 48.8 76.6 (36)%
000
Copper mined tonnes 8,881 13,015 (32)%
000
Tonnes milled tonnes 1,729 1,736 -%
Gold recovery per cent 69.9 71.4 (2)%
Copper recovery per cent 88.5 89.1 (1)%
Yield - Gold g/t 0.46 0.72 (36)%
- Copper per cent 0.36 0.46 (22)%
- Combined eq g/t 1.01 1.43 (29)%
Gold produced 000'oz 24.5 38.4 (36)%
Copper produced tonnes 5,913 7,617 (22)%
000'
Total equivalent gold produced eq oz 56.1 79.6 (30)%
000'
Total equivalent gold sold eq oz 59.8 85.0 (30)%
AISC US$/oz (129) (138) (7)%
US$/
AISC eq oz 963 853 13%
AIC US$/oz (27) 63 (143)%
US$/
AIC eq oz 1,009 953 6%
Sustaining capital expenditure US$m 2.9 11.6 (75)%
Non-sustaining expenditure US$m 2.2 7.9 (72)%
Total capital expenditure US$m 5.1 19.5 (74)%
Gold equivalent production decreased by 30% to 56,100oz in the March quarter from 79,600oz in the December quarter mainly
due to lower gold and copper grades in line with the mining sequence combined with lower gold and copper recoveries as a
result of metallurgical conditions and the impact of the lower grades of material processed.
Total tonnes mined decreased by 5% to 5.9Mt in the March quarter from 6.2Mt in the December quarter, mainly due to a
decrease in ore mined of 25% to 2.3Mt in the March quarter from 3.0Mt in the December quarter. This was partially offset
by an increase in waste mined of 15% to 3.6Mt in the March quarter from 3.2Mt in the December quarter. The decrease in
total tonnes mined is in line with the mining schedule, considering the rainy season during the March quarter.
Gold and copper grades mined decreased by 15% and 9% respectively, in line with the mining sequence expected for the
March quarter. Consequently, gold yield decreased by 36% to 0.46g/t in the March quarter from 0.72g/t in the December
quarter and copper yield decreased by 22% to 0.36% in the March quarter from 0.46% in the December quarter.
The gold and copper mined grades are expected to remain similar for the rest of the year in line with the 2022
operational plan. Gold and copper yields are forecast to increase for the remainder of 2022 as a result of preferential
processing of higher grade ore while stockpiling lower grades.
Total equivalent gold sold decreased by 30% to 59,800oz in the March quarter from 85,000oz in the December quarter,
mainly due to lower gold and copper production.
All-in cost per gold ounce sold decreased to a negative US$27/oz in the March quarter from US$63/oz in the December
quarter, mainly due to lower cost of sales before amortisation and depreciation, lower capital expenditure during
the March quarter, and the effect of higher by-product credit resulting from higher copper price received, partially
offset by lower gold ounces sold. All-in cost per equivalent ounce increased by 6% to US$1,009 per equivalent ounce
in the March quarter from US$953 per equivalent ounce in the December quarter mainly due to lower equivalent ounces
sold, partially offset by lower cost of sales before amortisation and depreciation and lower capital expenditure.
Total capital expenditure decreased by 74% to US$5m in the March quarter from US$20m in the December quarter,
as a result of a planned slowdown of construction activities at the tailing storage facility and waste storage
facilities during the rainy season. Sustaining capital expenditure decreased by 75% to US$3m in the March quarter
from US$12m in the December quarter, due to timing of expenditure as well as the crusher replacement and land
acquisition capital included in the December 2021 quarter. Non-sustaining capital expenditure decreased by 72%
to US$2m in the March quarter from US$8m in the December quarter due to reduced construction activities at Ana
and Arpon waste storage facilities, as a result of the rainy season.
Salares Norte
The Salares Norte project continued progressing during Q1 2022. A protracted third wave of COVID-19 in Chile, resulted
in increased absenteeism, impacting the Salares Norte project during Q1 2022. By the end of the quarter, the third wave
had subsided and activity on the site increased. Total project progress at the end of March was 70%, compared to the
63% at the end of Q4 2021. Construction progress at the end of March 2022 was 64%, compared to 55% at the end of Q4
2021. The project remains on track for first gold at the end of Q1 2023.
During Q1 2022 the highlights were the completion of the Fresh Water system, including pumping tests from the wells
to the plant and the completion of the truck shop facilities. The SAG mill gear was installed during the quarter.
Installation of all leaching and CIP tanks continued during the quarter. Mechanical installation of the thickeners
is underway. Significant progress was achieved in the civil works of the Merrill Crowe plant, the lime plant and the
cyanide building facilities.
US$77.5m was spent on the project during the quarter, comprising US$63.0m in capex, US$9.2m in exploration, US$4.3m
in investment in working capital and US$2.8m in other cost, partially offset by a realised gain of US$1.8m on the FX
hedge. Given the elevated level of inflation, the contingency that was built into the capex forecast has started to
be eroded. Should inflation continue at current levels, we expect the overall project capex to be 5-7% higher than
expected, The hedge gain will be credited to the cost of the project.
Pre-stripping of the Brecha Principal pit continues to progress well and volumes continued to track ahead of schedule
during the quarter, with 11Mt mined. A total of 34Mt has been mined to-date.
US$9.2m was spent on district exploration during the March quarter compared to US$9.9m spent in the December quarter.
Total metres drilled in the March quarter were 6,148 metres compared to 9,105 metres drilled in the December quarter.
Australia region
St Ives
March Dec %
2022 2021 Variance
Underground
000
Ore mined tonnes 417 453 (8)%
000
Waste mined tonnes 199 244 (18)%
000
Total tonnes mined tonnes 616 697 (12)%
Grade mined g/t 5.43 4.92 10%
Gold mined 000'oz 72.8 71.7 2%
Surface
000
Ore mined tonnes - 295 (100)%
000
Surface waste (Capital) tonnes 3,773 801 371%
000
Surface waste (Operational) tonnes - 303 (100)%
000
Total waste mined tonnes 3,773 1,104 242%
000
Total tonnes mined tonnes 3,773 1,399 170%
Grade mined g/t - 1.91 (100)%
Gold mined 000'oz - 18.1 (100)%
Strip ratio waste/ore - 3.7 (100)%
Total (Underground and Surface)
000
Total ore mined tonnes 417 748 (44)%
Total grade mined g/t 5.43 3.74 45%
000
Total tonnes mined tonnes 4,389 2,096 109%
Total gold mined 000'oz 72.8 89.8 (19)%
000
Tonnes milled tonnes 1,021 1,015 1%
Yield - underground g/t 5.06 4.93 3%
Yield - surface g/t 1.10 1.44 (24)%
Yield - combined g/t 2.86 3.39 (16)%
Gold produced 000'oz 93.9 110.5 (15)%
Gold sold 000'oz 95.9 108.6 (12)%
AISC A$/oz 1,681 1,339 26%
US$/oz 1,217 978 24%
AIC A$/oz 1,718 1,387 24%
US$/oz 1,244 1,013 23%
Sustaining capital expenditure A$m 38.8 29.0 34%
US$m 28.1 21.1 33%
Non-sustaining capital expenditure A$m 0.2 5.2 (96)%
US$m 0.2 3.8 (95)%
Total capital
expenditure A$m 39.0 34.2 14%
US$m 28.3 24.9 14%
Gold production decreased by 15% to 93,900oz in the March quarter from 110,500oz in the December quarter mainly
due to lower underground ore tonnes mined and processed.
At the underground operations, ore mined decreased by 8% to 417,000t in the March quarter from 453,000t in the
December quarter with less ore mined from Hamlet, in line with the planned mining schedule.
Grade mined from underground operations increased by 10% to 5.43g/t in the March quarter from 4.92g/t in the
December quarter, due to increased grades mined at Invincible underground mine. Gold mined increased by 2%
to 72,800oz in the March quarter from 71,700oz in the December quarter due to higher grades mined, partially offset
by lower volumes mined.
No open pit ore mining occurred in the March quarter (December quarter - 295kt) as focus was given to pre-stripping
of Neptune stage 7, resulting in capital waste tonnes mined increasing by 371% to 3,773kt in the March quarter from
the 801kt in the December quarter.
As a result of no open pit ore being mined, total ore mined (underground and surface) decreased by 44% to 417kt
in the March quarter from 748kt in the December quarter and grade mined increased by 45% to 5.43g/t in the March
quarter from 3.74g/t in the December quarter, resulting in a decrease of 19% in gold mined, to 72,800oz in the March
quarter from 89,800oz in the December quarter.
Surface yield of stockpiles processed decreased by 24% to 1.10g/t in the March quarter from 1.44g/t in the December
quarter with lower grade ore from historical stockpiles processed in the March quarter.
All-in cost increased by 24% to A$1,718/oz (US$1,244/oz) in the March quarter from A$1,387/oz (US$1,013/oz) in the
December quarter as open pit mining was focused solely on pre-stripping leading to higher capital costs coupled with
an increase in the cost of ore drawn from stockpiles.
Total capital expenditure increased by 14% to A$39m (US$28m) in the March quarter from A$34m (US$25m) in the December
quarter.
Sustaining capital expenditure increased by 34% to A$39m (US$28m) in the March quarter from A$29m (US$21m) in the
December quarter due to increased pre-stripping of Neptune stage 7.
Non-sustaining capital expenditure decreased by 96% to A$0.2m (US$0.2m) in the March quarter from A$5m (US$4m)
in the December quarter due to a reduction in non-sustaining exploration spend.
Agnew
March Dec %
2022 2021 Variance
000
Underground ore mined tonnes 250 266 (6)%
000
Underground waste mined tonnes 208 208 -%
000
Total tonnes mined tonnes 458 474 (3)%
Grade mined - underground g/t 8.08 7.11 14%
Gold mined 000'oz 65.0 60.8 7%
000
Tonnes milled tonnes 292 320 (9)%
Yield g/t 6.73 5.58 21%
Gold produced 000'oz 63.0 57.5 10%
Gold sold 000'oz 64.5 57.1 13%
AISC A$/oz 1,577 1,500 5%
US$/oz 1,142 1,091 5%
AIC A$/oz 1,775 1,782 -%
US$/oz 1,285 1,299 (1)%
Sustaining capital expenditure A$m 21.5 18.1 19%
US$m 15.5 13.1 18%
Non-sustaining capital expenditure A$m 11.8 16.1 (27)%
US$m 8.6 11.9 (28)%
Total capital expenditure A$m 33.3 34.2 (3)%
US$m 24.1 25.0 (4)%
Gold production increased by 10% to 63,000oz in the March quarter from 57,500oz in the December quarter due to
increased grade of ore mined and processed.
Mined grade increased by 14% to 8.08g/t in the March quarter from 7.11g/t in the December quarter with high grade
ore mined from the Kath lode at Waroonga and Sheba lode at New Holland during the March quarter. As a result of the
increase in grade, gold mined increased by 7% to 65,000oz in the March quarter from 60,800oz in the December quarter.
All-in cost remained similar at A$1,775/oz (US$1,285/oz) in the March quarter from A$1,782/oz (US$1,299/oz) in the
December quarter. The March quarter was impacted by inflationary pressures on commodity inputs and employee costs,
partially offset by increased gold production.
Total capital expenditure decreased by 3% to A$33m (US$24m) in the March quarter from A$34m (US$25m) in the December
quarter.
Sustaining capital expenditure increased by 19% to A$22m (US$16m) in the March quarter from A$18m (US$13m) in the
December quarter due to increased exploration drilling and expenditure on expansion of the site accommodation village.
Non-sustaining capital expenditure decreased by 27% to A$12m (US$9m) in the March quarter from A$16m (US$12m) in the
December quarter with lower expenditure on the mill crushing circuit expansion.
Granny Smith
March Dec %
2022 2021 Variance
000
Underground ore mined tonnes 405 424 (4)%
000
Underground waste mined tonnes 172 240 (28)%
000
Total tonnes mined tonnes 577 664 (13)%
Grade mined - underground g/t 5.39 6.01 (10)%
Gold mined 000'oz 70.2 81.9 (14)%
000
Tonnes milled tonnes 389 438 (11)%
Yield g/t 5.27 5.62 (6)%
Gold produced 000'oz 65.9 79.1 (17)%
Gold sold 000'oz 59.7 79.1 (25)%
AISC A$/oz 1,565 1,378 14%
US$/oz 1,133 1,007 13%
AIC A$/oz 1,767 1,550 14%
US$/oz 1,279 1,133 13%
Sustaining capital expenditure A$m 18.3 29.3 (38)%
US$m 13.3 21.6 (38)%
Non-sustaining capital expenditure A$m 10.1 13.6 (26)%
US$m 7.3 9.9 (26)%
Total capital expenditure A$m 28.4 42.9 (34)%
US$m 20.6 31.5 (35)%
Gold production decreased by 17% to 65,900oz in the March quarter from 79,100oz in the December quarter due to lower
ore tonnes milled as well as lower grade of ore processed.
Underground waste mined decreased by 28% to 172kt in the March quarter from 240kt in the December quarter following
completion of development in zones Z80 and Z90.
Grade mined decreased by 10% to 5.39g/t in the March quarter from 6.01g/t in the December quarter due to decreased
grades mined from zones Z80 and Z100. As a result of the decrease in grade and a 4% decrease in ore mined, gold mined
decreased by 14% to 70,200oz in the March quarter from 81,900oz in the December quarter.
Tonnes milled decreased by 11% to 389kt in the March quarter from 438kt in the December quarter due to decreased
availability of underground ore and the timing of the March milling campaign.
All-in cost increased by 14% to A$1,767/oz (US$1,279/oz) in the March quarter from A$1,550/oz (US$1,133/oz) in the
December quarter. The March quarter was impacted by inflationary pressures on commodity inputs and employee costs,
as well as a decrease in gold sold. These adverse impacts were partially offset by a decrease in capital expenditure.
Total capital expenditure decreased by 34% to A$28m (US$21m) in the March quarter from A$43m (US$32m) in the December
q ...
