SA mining company Gold Fields reported a strong operational performance for the first quarter, with gold output up 19% year on year for the three months ended March.
The improvement was attributed to a recovery from weather-related challenges which had affected the group’s Gruyere, St Ives (Western Australia), South Deep (SA) and Cerro Corona (Peru) mines early last year.
Gold output was reported at 551,000oz, 19% higher than the corresponding quarter of 2024, putting the group on track to meet full-year guidance, Gold Fields said on Tuesday.
As a result of the strong performance, the company closed the first quarter with a healthy balance sheet position, evidenced by a lower net debt to adjusted earnings before interest, tax, depreciation and amortisation (ebitda) ratio.
The record bullion price enabled the group to reduce its net debt from $2.09bn to $1.98bn by end-March, while also paying a final dividend of $346m.
The improved balance sheet comes amid a recent focus on inorganic growth, with Gold Fields announcing this week that it had closed a binding agreement to acquire 100% of Australian miner Gold Road Resources.
The transaction, which is expected to be completed in the second half of the year, “aligned with Gold Fields’ strategy of improving the quality of its portfolio through investment in quality, long-life assets”, Gold Fields CEO Mike Fraser said.
However, the Ghanaian government’s efforts to clamp down on the country’s gold exports has put pressure on Gold Fields’ joint venture with AngloGold Ashanti, causing the firms to hit pause on the deal this week.
“While the shared value created by a combination of the two mines remains compelling, Gold Fields and AngloGold have agreed to pause discussions related to the joint venture to allow focus on our respective operations on a standalone basis,” Fraser said.
Full-year gold production guidance was maintained at between 2.25-million ounces and 2.45-million ounces. The company expects capital expenditure to be between $1.49bn and $1.55bn this year.
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