Gold Fields Limited reported that it produced 1,154,000 ounces (oz) of gold during the first half of 2023, marking a 4 percent decline in production compared to the same period in the previous year when they produced 1,201,000 oz.
The decrease in production is primarily attributed to the planned reduction in output at Damang, as stated by the company.
For the first half of 2023, the company’s all-in-costs stood at US$1,398/oz, reflecting a 3 percent increase compared to H1 2022, where it was US$1,352/oz. This increase is attributed to lower gold sales and higher cost of sales before amortization and depreciation, partially offset by reduced non-sustaining capital expenditure.
Conversely, the all-in-sustaining cost (AISC) for H1 2023 amounted to US$1,215/oz, in contrast to the US$1,148/oz recorded during H1 2022. This represents a year-on-year increase of 6 percent.
As a result of these developments, the company reported earnings of US$454 million for the six months ending in June 2023, equivalent to US$0.51 per share. This represents a 9 percent decrease compared to the US$498 million (US$0.56 per share) earned in H1 2022.
In light of these financial results, the company, in unaudited interim results shared with the press, declared an interim dividend of 325 South African cents per share, which accounts for 35.1 percent of normalized earnings.
This compares to the 2022 interim dividend of 300 South African cents per share, marking an 8 percent increase year-on-year. This dividend decision aligns with the company’s dividend policy of distributing between 30 to 45 percent of normalized profit as dividends.
The company’s performance comes on the back of a difficult operating period – marked by “elevated mining cost inflation and strong competition for skills in our key mining jurisdictions presenting significant headwinds”.
The Group made two significant corporate announcements that underscore our commitment to pursuing value-enhancing transactions to enhance the quality and value of our portfolio. These announcements included the proposed Tarkwa/Iduapriem joint venture in Ghana in March 2023 and the Windfall joint venture with Osisko Mining in Canada in May 2023.
Furthermore, we have expedited several internal initiatives designed to further reinforce the execution of our strategy. These initiatives are aimed at unleashing the full potential of our personnel and assets, ultimately driving increased business value.
During the first half of 2023, our primary focus was on two of these initiatives: the implementation of our cultural transformation journey, known as the “Gold Fields Way,” and the optimization of our assets.
Local production
Silver Fields During Q2 2023, Ghana delivered approximately 204,000 oz of gold, including 45 percent of Asanko, at an AIC of US$1,227 per ounce. Ghana produced 397 000 oz of gold in H1 2023 at an AIC of US$1,210 per