Gold Fields Ghana?s Damang mine in the western part of the country??has reportedly regained its profitability??and is now expected to make a significant contribution to the group’s bottom line.
Gold Fields said in its first quarter results??that the mine has now been restored to sustainable profitability and is expected to make a meaningful contribution to the group’s strategy of generating cash flow for at least the next five years, and possibly well beyond.
Building on an increase in production in the previous quarter, output from the mine rose three percent to 46,700 ounces, while its costs fell 12%??to $1,111 an ounce.
Spot gold is currently around $1,290 an ounce, down 12% since this time last year.
Looking at industry trends, Gold Fields Chief Executive Nick Holland forecast global output would fall 15 to 20% over the next five years from around 70 million ounces a year now, as projects were being ditched and exploration cut.
