Gold Fields Cuts Production Guidance on Worse-Than-Expected Winter Weather in Chile

By Christian Moess Laursen

Gold Fields lowered its production guidance for the year following worse-than-expected impacts from winter weather in Chile, setting back the South African gold miner's ramp-up of the key Salares Norte project.

The company, one of the largest gold producers in the world, now expects output for the year between 2.2 million and 2.3 million ounces of gold, down from a previous target of 2.33 million to 2.43 million ounces.

Earlier-than-expected winter weather froze piping equipment at its process plant, causing a temporary shutdown.

"These impacts have been greater than planned owing to the early onset and extended duration of winter conditions during the commissioning and ramp-up phase," Gold Fields said.

This also led to a downgraded cost guidance for the year, with all-in sustaining costs now targeted at between $1,470 and $1,530 an ounce from $1,410-$1,460 an ounce before.

The plant has been restarted but commissioning and ramp-up during the winter period are expected to continue to be challenging, likely hampering output during the winter months, Gold Fields said.

Write to Christian Moess Laursen at christian.moess@wsj.com

(END) Dow Jones Newswires

June 13, 2024 06:53 ET (10:53 GMT)

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