JOHANNESBURG (miningweekly.com) – Gold major Gold Fields’ attributable equivalent gold production for the quarter to September 30, decreased by 4% year-on-year to 537 000 oz.

Production was, however, 2% higher than the 529 000 oz produced in the second quarter of the year.

South Deep, near Johannesburg, produced 69 000  oz of gold during the third quarter, a 26% increase year-on-year but 9% lower quarter-on-quarter, as a result of lower reef yield due to changes in mining mix.

Destress mining at South Deep decreased by 35% quarter-on-quarter to 6 340 m² due to the combined effect of the earlier-than-anticipated full adoption of the high-profile destress method and a fatality, which resulted in the cessation of destress mining across the operation for a two-week period. High-profile destress accounted for 90% of total destress meters in the third quarter.

Meanwhile, managed production in Ghana for the quarter under review was 188 000 oz, down 3% year-on-year and up 14% quarter-on-quarter.

Gold equivalent production at Gold Fields’ Cerro Corona gold mine, in Peru, was 23% lower year-on-year and 5% lower quarter-on-quarter at 61 000 oz.

Production at its Australian operations decreased by 5% year-on-year and 1% quarter-on-quarter to 237 000 oz.

Gold Fields maintained its full-year production guidance at 2.1-million to 2.15-million ounces, while all-in sustaining costs (AISC) and all-in costs (AIC) are also expected to remain within previous guidance of $1 000/oz to $1 010/oz and $1 035/oz to $1 045/oz respectively.

AISC for the third quarter, at $1 026/oz, were 8% higher year-on-year and flat quarter-on-quarter, while AIC, at $1 038/oz, were 8% higher year-on-year and 2% lower quarter-on-quarter.

The average gold price achieved in the quarter was 20%, or $226/oz, higher year-on-year and 7%, or $87/oz, higher quarter-on-quarter.

On the back of the increase in the gold price during the quarter under review and a favourable working capital movement, the net cash flow from operating activities less net capital expenditure, environmental payments and financing costs for the quarter was $152-million, 2.5 times higher than the $60-million net cash flow reported for the first half of the year.

Consequently, Gold Fields’ net debt balance further reduced during the quarter to just below $1.03-billion from the about $1.16-billion reported in June this year. “We remain on track to beat our net debt to [earnings before interest, taxes, depreciation, and amortisation] target,” said Gold Fields CEO Nick Holland.

He noted that the gold industry was buoyed by higher gold prices during the third quarter; however, the impact had waned post quarter end owing to the retreating gold price in recent weeks.

“At Gold Fields, we remain focused on delivering on our strategic objectives, despite the moves in the gold price, including the positioning of the portfolio to withstand lower prices.”