Chris Griffith
DESPITE THE global challenges, Gold Fields had a solid first quarter of this year.
The group’s attributable equivalent gold production was 580,000 ounces, up 7% year-on-year (YoY), down 8% quarter-on-quarter (QoQ). Its production remains on track to deliver the guidance provided in February 2022.
Chris Griffith, CEO of Gold Fields, who disclosed this, said the “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.”
He added that 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,” he averred.
Group All-in sustaining costs (AISC) for the quarter was US$1,150/oz, up 7% YoY and up 9% QoQ while all in costs (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$984 million, compared to US$969 million at the end of December 2021, primarily driven by the payment of the final dividend of US$153 million and a non-controlling interest holders dividend of US$14 million. The Group generated free cash flow of US$161 million 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.
“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),” it said.
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