Production challenges impact Q1 output

In Q1 2025, Gold Fields produced between 460,000 and 470,000 oz of gold, excluding contributions from the Asanko mine, which was recently sold to Galiano Gold. This output reflects a dip from previous quarters, attributed to several operational constraints.

In South Africa, the South Deep mine faced reduced stope access due to increased backfill rehandling and slower stope turnaround in current destress cuts. These issues impacted the mine's productivity, though remedial actions have begun to yield positive results.

In Australia, severe weather conditions, particularly heavy rainfall, affected operations. The Gruyere project was notably impacted, with rainfall damaging and closing the Laverton Shire roads that provide access to the mine. Consequently, mining operations were suspended, and the plant processed lower-grade stockpiles until the end of March.
 

Cost implications and capital expenditure

The production challenges have influenced the company's cost structure. Gold Fields anticipates AISC for 2024 to range between US$1,410 and US$1,460 per ounce, while all-in costs could reach up to US$1,650 per ounce. These figures include approximately US$132 million allocated for the St Ives renewable power project in Australia. Excluding this project, AISC is expected between US$1,350 and US$1,400 per ounce, with all-in costs ranging from US$1,540 to US$1,590 per ounce.
 

Strategic developments in Ghana

In Ghana, Gold Fields reached a transitional agreement with the government regarding the Damang mine after the automatic renewal of the mine’s lease was declined. A new 12-month mining lease will be issued to a Gold Fields subsidiary, contingent upon parliamentary ratification. During this period, Gold Fields will resume open-pit mining and conduct feasibility studies to evaluate Damang’s reserves and potential LoM.
 

RELATED: Gold Road Resources rejects A$3.3 billion from Gold Fields

Additionally, talks between Gold Fields and AngloGold Ashanti regarding a merger of their neighboring Tarkwa and Iduapriem gold mines have been paused. The proposed joint venture aimed to create Africa’s largest gold mine, but pending regulatory approvals have stalled progress. Both companies will now focus on enhancing the performance of their respective mines independently.
 

Outlook for the remainder of 2025

Despite the challenges faced in Q1, Gold Fields remains optimistic about the remainder of 2025. The company expects production to recover, bolstered by the ramp-up of Salares Norte and improvements at South Deep and Gruyere. Gold Fields has guided for a 9% to 18% year-over-year increase in production for 2025, aiming to surpass 2023 levels.

The company continues to focus on operational efficiencies, cost management, and strategic growth initiatives to navigate the dynamic gold mining landscape.
 

Statement by Mike Fraser, CEO

“Gold Fields has had a solid start to 2025 with the operational momentum reported for H2 2024 continuing into Q1 2025. Group attributable production for the quarter returned to normalised Q1 levels and was 19% higher than Q1 2024 which was impacted by weather-related challenges but 14% lower compared to Q4 2024, which was a particularly strong quarter.

Encouragingly, Salares Norte continued to ramp-up production while the team advanced installations and preparations in the process plant ahead of the upcoming winter period. At the Windfall project, we continued to advance detailed engineering ahead of a final investment decision, whilst the environmental permit process continued to progress with the next round of questions received from COMEX on 1 May 2025.

Post the quarter end, aligned to our strategy of improving the quality of our portfolio through investment in quality, long-life assets, we concluded a binding agreement to acquire 100% of Gold Road Resources, which we expect will be completed in the 2H 2025.”