Gold Fields backed its full-year targets for output and costs despite posting a sequential fall in third-quarter gold production on operational difficulties and rising costs.
The South African gold mining company said Thursday that it produced 542,000 gold ounces in the third quarter, a 6% fall from 577,000 ounces in the preceding three months, with the largest decline in output reported in operations in Ghana as the Damang mine reduced production in line with the mine plan.
Its all-in sustaining costs–a metric reflecting the full costs of gold mining–increased 8% on quarter to $1,381 per ounce due to lower amount of gold sold and rising costs across all operations compounded by initial spending of preproduction capital at the Windfall Project in Canada.
“The operating environment remained challenging as above-inflation cost increases and the shortage of key skills, particularly in the Australia and South Africa regions, persisted,” interim Chief Executive Martin Preece said.
Despite this, Gold Fields kept its full-year targets to production and costs of 2.25 million-2.30 million ounces and $1,480-$1,520 an ounce.
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