Gold Fields, a South African mining company, has increased its output forecast for 2024, despite facing further delays in starting its Chile mine.
The company said on Monday that it expects to produce between 2.4 and 2.5 million ounces of gold in 2024, up from 2.3 million ounces in 2023.
The higher output projection is mainly driven by the improved performance of its mines in Australia, Ghana, and Peru, as well as the expected contribution from its Salares Norte project in Chile.
Salares Norte is a greenfield gold and silver mine that Gold Fields has been developing since 2020, with an investment of $1 billion.
The mine is located in the Atacama region, one of the driest and highest places on Earth.
The mine was initially scheduled to start production in early 2023, but it has faced several setbacks due to the Covid-19 pandemic, bad weather, and commissioning problems.
The company said that it now expects to produce the first gold from Salares Norte in April 2024, after resolving the technical issues and ensuring the availability of contractors and equipment.
The company said that it is confident that Salares Norte will be a world-class asset, with an estimated annual production of 450,000 ounces of gold and 5 million ounces of silver for the first seven years.
The mine will also have a low all-in sustaining cost of $552 per ounce, making it one of the lowest-cost producers in the industry.
The company said that Salares Norte will also have a positive impact on the local community and the environment, as it will create jobs, support social development, and use renewable energy sources.
The company said that it is committed to complying with the highest standards of safety, health, and environmental management, as well as respecting the human rights and cultural heritage of the indigenous people.
The company said that Salares Norte is a key part of its growth strategy, as it aims to increase its output to 2.8 million ounces by 2025.
The company said that It will also continue to explore new opportunities and optimize its existing operations, while maintaining a strong balance sheet and paying dividends to its shareholders.
The company said that It is optimistic about the future of the gold industry, as the demand for the precious metal remains high amid the global economic recovery and the geopolitical uncertainties.
The company said that it will leverage its expertise, experience, and innovation to deliver value and excellence to all its stakeholders.
Source: Reuters
