Mining major Gold Fields’ attributable equivalent gold production for the quarter ending September 30, 2016, was 4% lower year-on-year and 2% higher than the Q2 2016 production of 537 000 oz, the company reported in Johannesburg last month.

All-in sustaining costs (AISCs) were 8% higher year-on-year and remained flat quarter-on-quarter at $1 026/oz, while all-in costs (AICs) were 8% higher year-on-year and 2% lower quarter-on-quarter at $1,038/oz.

Both AISCs and AICs are tracking below Gold Fields’ cost guidance for 2016. Gold Fields publishing its cost guidance in February.

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 Q3 2016 and 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 H1 2016.

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. “We remain on track to beat our net debt to [earnings before interest, taxes, depreciation and amortisation] target of 1x by year-end,” said Gold Fields CEO Nick Holland.

Meanwhile, guidance, which was upgraded in August, for attributable equivalent gold production for 2016 remains unchanged at between 2.10-million ounces and 2.15-million ounces. AISCs and AICs remain unchanged from the February guidance of between $1 000/oz and $1 010/oz and between $1 035/oz and $1 045/oz respectively.

Holland highlighted that the gold industry was buoyed by higher gold prices during Q3 2016; however, the impact had waned after the 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.”

Production from Gold Fields’ South Deep operation, near Johannesburg, was 26% higher year-on-year but 9% lower quarter-on-quarter at 69 000 oz, as a result of lower reef yield owing to changes in the mining mix. AICs at the mine were 2% higher year-on-year and 4% lower quarter-on-quarter at R599 245/kg, or $1 317/oz.

Destress mining at South Deep decreased by 35% quarter-on-quarter to 6 340 m2, owing to the combined effect of the earlier-than-anticipated full adoption of the high-profile destress method and a fatality that occurred last month, resulting in the cessation of destress mining across the operation for a two-week period. High-profile distress accounted for 90% of total destress metres in Q3 2016.

Meanwhile, managed production in Ghana for Q3 2016 was 188 000 oz, down 3% year-on-year and up 14% quarter-on-quarter, with AICs of $999/oz up 4% year-on-year, but 7% lower 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, with AICs of $765 per equivalent ounce, up 2% year-on-year and up 28% quarter-on-quarter.

Production at Gold Fields’ Australian operations reduced by 5% year-on-year and was 1% less than Q2 2016’s production, with a total of 237 000 oz being produced during the quarter in review. AICs for the company’s Australian operation stand at $991/oz for Q3 2016, up 11% year-on-year and up 2% quarter-on-quarter.

Meanwhile, Gold Fields intends to increase gold production from its West African assets to a million ounces a year. The company owns and operates two mines in Ghana, namely Damang and Tarkwa, which Gold Fields West Africa head Alfred Baku noted last month would jointly be able to produce about 800 000 oz/y at peak operating performance. Production at Tarkwa increased by 11% from 134 100 oz in the second quarter to 148 600 oz in the quarter ending September 30, owing to higher plant throughput and yield. Total tons mined, including capital stripping, decreased by 2% from 26-million tons in the second quarter to 25.3-million tons in the quarter under review. Ore tons mined increased by 6% from 3.4-million tons to 3.6-million tons. Gold production at Damang increased by 29% from 30 200 oz in the second quarter to 38 900 oz in the third quarter, mainly owing to higher tons processed and higher yield.