Lower output at Cerro Corona dents Gold Fields' Q1
South African miner Gold Fields saw output of the metal drop 3% year-on-year in the first quarter on account of falling ore grades at its Peruvian operation.
Output in the Andean nation was also impacted by a wetter-than-usual rainy season.
Consolidated production fell to 497,000oz gold equivalent in the quarter from 515,000oz gold equivalent a year earlier, the Johannesburg-based company said in a statement. The company treated 8.67Mt of ore, up from 8.59Mt.
The company sold gold at US$1,216/oz in Q1, up from US$1,192/oz a year ago, while all-in sustaining costs climbed 6% to US$1,016/oz from US$961/oz a year earlier, it said. Gold Fields added it trimmed its debt to US$1.24bn through March 31 from US$1.34bn a year ago.
Its Cerro Corona gold-copper mine, in Cajamarca region, produced 33,800oz gold in the quarter, down from 34,800oz a year earlier, while copper production climbed to 7,267t from 7,051t, it said. Ore grades slid to 0.9g/t gold from 0.94g/t a year ago, while copper grades improved to 0.5% from 0.49%.
The mine sold gold at US$1,211/oz and copper at US$5,803/t, compared with US$1,167/oz and US$4,656/t a year ago, respectively.
The mine processed 1.71Mt of ore compared with 1.75Mt a year ago because of heavy rain and maintenance, with all-in sustaining costs running at US$626/oz gold equivalent, down from US$709/oz a year earlier.
Capex was unchanged at US$5mn at the mine in Q1. The company also invested US$12mn at its Salares Norte gold-silver project in Atacama, Chile, a 900h property that has attributable resources for 3.3Moz gold and 42Moz silver.
Gold Fields, which also has operations in Africa and Australia, set 2017 production guidance at 2.10-2.15Moz gold equivalent, in line with last year's production of 2.15Moz gold equivalent. All-in sustaining costs are expected to run at US$1,010-1,030/oz.
Cerro Corona is Peru's second largest gold mine after Newmont Mining's Yanacocha operation. Peru is the world's fifth largest gold producer.
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