Gold Fields has reduced its annual output forecast for the second time this year, citing severe winter conditions hampered its planned production increase at the Salares Norte mine in Chile.
The Johannesburg-based gold miner now expects its 2024 output to be approximately 7% lower, ranging between 2 million and 2.15 million ounces, down from an earlier target of 2.43 million ounces.
This forecast revision marks the lowest expected output since 2013 when the company sold some South African assets to Sibanye Stillwater.
CEO Mike Fraser attributed the reduced forecast to unusually harsh winter conditions. These caused pipes at the mine’s processing plant to freeze, resulting in a two-month delay.
Fraser acknowledged that attempting a production ramp-up during winter was a miscalculation.
Following the announcement, the company’s shares fell 5.66% in early trading in Johannesburg.
Gold Fields, which has been shifting its focus from South Africa to more promising deposits in Ghana, Australia, and the Americas, is also dealing with production challenges at its South Deep mine in South Africa and the Gruyere mine in Australia, where excessive rains further disrupted output.
Despite these setbacks, Gold Fields anticipates a recovery in the latter half of the year, with production expected to improve in 2025.
Earlier this month, the company agreed to acquire Canadian miner Osisko for approximately $1.57 billion, shifting its focus to international assets.
The miner reported a 30% drop in profit to $320.7 million for the half-year ended June 30, driven by declining gold output.
Gold Fields has declared an interim dividend of three rands per share.
