South Deep mine was star performer in September quarter, Gold Fields says

Gold Fields said on Thursday that South Deep, the last remaining asset in SA, which has been its achilles heel for years, was the star performer during the September quarter in terms of output.

Gold production at the mine, based near Carletonville in Gauteng, surged 30% to 88,200oz in the three months to end-September from the June quarter, as a result of improved volumes, grade and yield.

The SA gold producer has spent billions of rand since about 2006 trying to bring the project to its full potential but had little to show for it until 2019, when it turned cash positive.

CEO Chris Griffith said output from the mine, which is said to possess the third-largest gold deposit in the world, would drop in the fourth quarter as a result of scheduled maintenance work on key shaft infrastructure.

All-in sustaining costs at the South Deep miner dropped 14% to $1,155oz quarter on quarter.

Besides South Deep, Gold Fields owns mine across Australia, Ghana and Peru.

At the group level, attributable gold equivalent production rose 8% quarter on quarter to 606,000oz and 9% year on year.

All-in sustaining costs slipped 8% quarter on quarter, but rose 9% from year ago at $1,016/oz.

Gold Fields, which is listed on the  JSE and in New York, kept the full-year production unchanged at between 2.30-million ounces and 2.35-million ounces.

Gold Fields shares rose 2% to R157.20 in early trade on the JSE.