Gold Fields falls due to ice storm in Chile

Gold Fields falls due to ice storm in Chile
Gold Fields falls due to ice storm in Chile

Bloomberg— Gold Fields Ltd. recorded the biggest drop since Februaryafter learning that the Early arrival of winter in Chile has slowed down the start-up of its main expansion projectwhich has forced the mining company to cut its production forecasts for this year.

Shares of the gold producer plummeted by up to 8.6%, the biggest drop on Johannesburg’s 122-member All-Share index. Gold Fields cut its production forecasts to a range of between 2.2 and 2.3 million ounces.

The freezing weather froze the pipes at the Salares Norte process plant, before it restarted, Gold Fields said in a statement Thursday. “Start-up and ramp-up during the winter period are expected to remain difficult, creating uncertainty over production levels during the winter months,” he said.

Gold Fields began production at Salares Norte – a $1.2 billion open pit mine in Chile that experienced delays caused by bad weather and labor shortages – in March. The project – about 4,000 meters above sea level in the Andes mountain range – is the main driver of the company’s plan to increase production.

Given the weather impact, the Chilean operation is likely to produce between 90,000 and 180,000 ounces this year, less than the 220,000 to 240,000 ounces the company had previously forecast.

Gold Fields, with operations in Australia, Ghana, Peru and South Africa, raised its 2024 all-in sustaining cost forecast to a range of $1,470 to $1,530 per ounce, up from $1,410 to $1,460 previously forecast.

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