Key Points
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South Deep mine increased gold sales by 20% and met output targets.
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All-in costs dropped 3% as higher sales boosted margins.
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Gold Fields completed $1.45 billion Gold Road Resources acquisition.
Gold Fields’ South Deep gold mine in Gauteng recorded a solid performance in the September quarter, selling 20 percent more gold than the previous quarter and 22 percent more than a year earlier.
The mine sold 86,300 ounces of gold, up from 70,800 ounces in the same period last year. The mechanised operation, located about 50 kilometres southwest of Johannesburg, also produced 78,000 ounces during the quarter, meeting its production target.
All-in costs in rand terms fell by 3 percent from the previous quarter, helped by higher sales volumes. The company stated that the results highlight the mine’s efficiency gains and its ability to leverage increased output.
“The team continues to make good progress in improving stope turnaround, which is key to driving efficiency and realising incremental gains,” Gold Fields CEO Mike Fraser said in a statement.
Output and Investment
Gold Fields reported that the mine milled 432,000 tonnes of ore during the quarter, a 5 percent increase from the June period. ThThe average grade of the underground reef rose by 2 percent, reaching 6.14 grams per tonne.
Capital expenditure increased by 17 percent to R582.6 million, primarily due to work on the winders, underground infrastructure, and a collision avoidance system.
BeDue to higher sales volumes, all-in costs declined to R1,029,496 per kilogram, although this was partly offset by increased capital spending.
Compared to the same quarter in 2023, gold production rose 8 percent, driven by stronger plant recovery and better mine call factors.
Group Performance and Safety
Across its operations, Gold Fields posted a 6 percent increase in attributable production to 621,000 ounces for the September quarter. All-in sustaining costs dropped 10 percent to $1,557 per ounce, while total all-in costs fell 11 percent to $1,835 per ounce.
Fraser said the company maintained its focus on a multi-year safety improvement plan.
“Although we’ve had five consecutive fatality-free quarters, we recorded three serious injuries during the period. This shows the need for continued focus on our safety journey,” he said.
Financial Position and Expansion
Net debt declined to $791 million, supported by strong cash flow and offset slightly by the interim dividend payment of $36 million. The net debt-to-earnings ratio improved to 0.17 times, compared with 0.37 times in June.
After the quarter ended, Gold Fields completed the $1.45 billion acquisition of Gold Road Resources. The purchase was financed through a $2.3 billion bridge facility executed in July.
These results highlight a period of strong operational and financial performance for the South Deep mine, which continues to be one of South Africa’s key long-life gold assets.
