Gold Fields cuts output forecast after bad weather hits new Chile mine

A mine worker takes a break underground as South Africa's Gold Fields bets on solar to cut costs and carbon, at Gold Fields' South Deep mine, south-west of Johannesburg. Source: Reuters/Siphiwe Sibeko

This was mainly due to lower expected output from Salares Norte, which is now seen at 90,000-180,000 ounces versus a previous forecast of 220,000-240,000 ounces.

Lower output from Salares Norte is caused by the early onset and extended duration of winter conditions during the commissioning and ramp-up phase, Gold Fields said in a statement.

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"These weather events resulted in the freezing of material in the piping of the process plant causing temporary shutdown of the plant," Gold Fields said.

As a result of its lower output forecast, Gold Fields' all-in sustaining costs are expected to be $1,470 to $1,530 per ounce versus its previous guidance of $1,410-$1,460.

The $1.2bn Salares Norte mine delivered its first gold on 28 March after suffering several delays due to COVID-19 and bad weather.

Salares Norte is situated in Chile's Atacama region at high altitude in an area where winters can be extremely cold.

Gold Fields appointed Mike Fraser as CEO from January to lead the Johannesburg-based company's expansion in the Americas where it is investing in new mines in Chile and Canada.