Gold Fields has reported a 15% rise in gold production to 633,000oz for the March quarter and is on track to meet its full year guidance.
However, the gold miner said on Thursday costs were higher in the first quarter, reflecting a combination of external cost pressures and planned additional discretionary investment.
Since February, when the war between the US, Israel and Iran started, it has seen diesel costs increasing between 30% and 70%, freight costs rising by about 40% and LNG costs up about 30%. There have also been increases in the cost of cyanide and explosives.
“The forecast impact of this, assuming an oil price of $100 a barrel, is between $40/oz and $50/oz on a portfolio level,” it said.
The group said key drivers of the first quarter’s performance included higher consumable pricing, higher royalties linked to increased realised gold prices, stronger producer currencies and higher capital expenditure. These were partially offset by the positive impact of higher gold sales volumes.
All-in costs (AIC) rose by 10% to $2,046/oz, while all-in sustaining costs (AISC) were up 13% to $1,829/oz.
The performance in the quarter was underpinned by strong delivery from Salares Norte (Chile) after the achievement of steady-state operations in the fourth quarter of 2025.
However, production at Gruyere (Australia) was 25% lower year on year, mainly due to heavy rainfall that affected ex-pit mining activities and lower equipment and operator availabilities.
Australia’s Agnew reported a 31% decrease in production after seismic events in the Kath orebody, Agnew’s primary high-grade source, which required additional rehabilitation and slowed stoping cycles.
Gold Fields said labour availability and workforce stability continue to present challenges across its Australian operations, impacting productivity.
In Ghana, Tarkwa’s production decreased by 25% year on year, driven by lower yield and lower tonnes milled.
“We remain confident in achieving our full-year production guidance. While Gruyere, Agnew and Tarkwa faced operational challenges this quarter, each site is executing a defined recovery plan. These measures position us for stronger performance through the balance of the year,” the group said.
The balance of the operations delivered production in line with the plan.
The group expects to produce between 2.4-million and 2.6-million ounces of gold at AISC of between $1,800/oz and $2,000/oz.
Total capital expenditure is expected to be between $1.9bn and $2.1bn.
“We continue to monitor the macro environment closely and assess potential impacts on our operations, costs and security of supply. There have been significant increases in a number of our key commodities since the Iran war commenced,” it said.
“We are confident we can remain within our guidance range, but if prices move higher, this will place significant pressure on our ability to deliver cost within the guidance range,” it said.
Management has initiated several measures to mitigate the cost pressures, including asset optimisation and broader cost optimisation initiatives such as strategic sourcing.
“In this volatile context, we maintain a cautious outlook, while taking practical steps to protect delivery,” Gold Fields said.
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