Gold Fields has reported slightly lower production for the third quarter, but still expects full-year output to be at the upper end of its guidance even as costs rose by a quarter from a year ago.
The group said on Thursday that gold production declined 3% to 605,000oz in the quarter ended September, while all-in sustaining costs (AISC) were 26% higher than a year ago at $1,965/oz.
CEO Mike Fraser said Salares Norte (Chile) performed strongly in the quarter, producing 136,000oz at an all-in sustaining cost of $437/oz, while Gruyere, St Ives (both in Australia), Tarkwa (Ghana), South Deep (South Africa) and Cerro Corona (Peru) all delivered quarter-on-quarter production increases.
This was partially offset by planned lower production at Salares Norte and lower grades at Agnew in Western Australia.
“The group remains on track to deliver on the upper end of full-year production guidance, supported by a stronger fourth quarter expected, as a result of higher grades planned at St Ives and further improved performance at Gruyere, Tarkwa and Salares Norte,” Fraser said.
The group’s full-year production guidance is for 2.4-million ounces to 2.6-million ounces of gold.
Group AISC of $1,965/oz was in line with the June quarter, but 26% higher than the corresponding quarter in 2025. Gold Fields said this was due to external factors, including higher gold-price-linked royalties, stronger producer country currencies and higher input costs, together with lower year-on-year gold sales in the quarter.
Despite cost pressures mainly due to external factors, AISC and AIC are expected to be between $1,800/oz and $2,000/oz, and $2,075/oz and $2,300/oz, respectively, within its original guidance.
During the quarter, the group’s Windfall project received its certificate of authorisation, confirming completion of the environmental and social impact assessment process and providing authorisation to proceed to construction and full project development.
Windfall is one of the highest-grade gold projects in Canada and is expected to produce about 300,000oz of gold a year once ramped up. The project has the potential to become a cornerstone asset in the company’s portfolio.
Gold Fields will now progress the final investment decision for the project, subject to board approval, which is expected to be published by February 2027, with its 2026 provisional results.
It will also issue an updated construction schedule, the capital estimate for development of the project and the Windfall mineral resources and mineral reserves.
Gold Fields acquired the Windfall Project with its takeover of Toronto-listed Osisko Mining for C$2.16bn (R25.8bn) in 2024.
In September, the group’s A$38.7bn bid to acquire Northern Star Resources was rebutted by the Australian miner’s board, which said it was not appropriate to engage in further discussions at this time.
Gold Fields said at the time of making the approach to the Perth-based miner that it was in line with its strategy to improve the quality and value of its portfolio through investment in high-quality, long-life assets.
Fraser said while the group remains open to engagement, there can be no certainty that further engagement with Northern Star will occur, that the proposal will progress, or that a transaction will ultimately be concluded.
In October, Gold Fields entered into formal agreements with BHP to acquire the Kambalda Nickel Concentrator, surrounding tenements and mineralisation rights in the Goldfields region of Western Australia.
“Given our long-term commitment to the region, this strategic processing asset, its associated infrastructure and the prospective ground adjacent to St Ives are a natural fit for Gold Fields. The acquisition reflects our disciplined and innovative approach to improving the quality of our portfolio and is expected to be completed during 2027,” he said.
The group said it was still awaiting feedback from the Ghanaian government about the renewal of the Tarkwa mining leases.
In November last year, it submitted an early application for the renewal of the five Tarkwa mining leases, which expire in April 2027. In July the group submitted a comprehensive commercial proposal to the government of Ghana to support the lease renewals and the long-term sustainability of the mine.
“While we continue to seek engagement with the government, we are still awaiting feedback on our proposal and have no confirmed timeframe for this response or any further negotiations,” Fraser said.
“Additionally, we continue to experience increased levels of regulatory activity at Tarkwa. With less than six months remaining on the term of the leases, significant uncertainty remains as to the timing, outcome and terms of any renewal. We continue to consider all options available to us with respect to the renewals, including the exercise of our legal rights under the leases, our Development Agreement and at law,” he said.
Business Day
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