Gold Fields 2018 H1 RESULTS
34
the mining contractor at Neptune demobilising to reflect the lower
levels of open pit mining activity as Invincible open pit comes to
an end. The Neptune and Invincible pits will now be mined using
the existing owner mining fleet. In the June quarter, tonnes mined
were sourced as follows: 0.6 million tonnes at 3.17 grams per
tonne from Invincible and 0.3 million tonnes at 1.52 grams per
tonne from Neptune. This compared with 0.9 million tonnes at
2.48 grams per tonne from Invincible and 0.7 million tonnes at 3.78
grams per tonne from Neptune in the March quarter.
Operational waste tonnes mined increased by 10 per cent from 2.0
million tonnes in the March quarter to 2.2 million tonnes in the June
quarter and capital waste tonnes mined decreased by 38 per cent
from 3.7 million tonnes to 2.3 million tonnes with no further pre-
strip activities planned at Invincible open pit during 2018. Total
material movements at the open pits decreased by 25 per cent
from 7.3 million tonnes to 5.4 million tonnes. The strip ratio
increased from 3.5 to 4.9 driven by the stages 5 and 6 at Neptune.
Ounces mined at the consolidated St Ives mine decreased by 41
per cent from 178,400 ounces in the March quarter to 105,100
ounces in the June quarter. At the end of the June quarter,
Neptune high-grade oxide material stockpiled amounted to 77,600
ounces (1,142,000 tonnes at 2.34 grams per tonne), Invincible
amounted to 44,500 ounces (375,000 tonnes at 2.81 grams per
tonne) and A5 amounted to 7,900 ounces (174,000 tonnes at 1.46
grams per tonne).
his compared with 90,600 ounces (1,136,000
tonnes at 2.48 grams per tonne) at Neptune, Invincible amounted
to 28,700 ounces (368,000 tonnes at 2.43 grams per tonne) and
A5 amounted to 7,900 ounces (174,000 tonnes at 1.41 grams per
tonne) at the end of the March
quarter. Currently, Lefroy mill can
only sustain a 25 per cent oxide material blend. The excess
Neptune oxide material is stockpiled and fed to the mill so as to
maintain the optimum blend.
Throughput at the Lefroy mill decreased by 5 per cent from 1.07
million tonnes in the March quarter to 1.02 million tonnes in the
June quarter due to a scheduled major maintenance shutdown in
the June quarter. Yield increased by 5 per cent from 2.76 grams
per tonne to 2.89 grams per tonne.
Cost of sales before amortisation and depreciation, increased by
62 per cent from A$39 million (US$30 million) to A$63 million
(US$48 million). The increase in cost of sales before gold inventory
change and amortisation and depreciations was the result of the
commencement of stope mining at Invincible (A$4 million/US$3
million) and costs incurred in the major maintenance shutdown
(A$5 million/US$3 million), partially offset by reduced mining costs
at Hamlet underground (A$3 million/US$2 million). In addition, a
gold inventory credit of A$9 million (US$6 million) in the June
quarter compared with A$27 million (US$21 million) in the March
quarter. This decreased net stockpile credit of A$18 million
(US$15 million) adds to the A$6 million (US$3 million) increase in
cost of sales before gold inventory change and amortisation and
depreciations for an overall A$24 million (US$18 million) increase
in cost of sales before amortisation and depreciation.
Capital expenditure decreased by 5 per cent from A$38 million
(US$30 million) to A$36 million (US$27 million) mainly due to lower
capital waste tonnes mined in the open pits.
All-in sustaining costs and total all-in cost increased by 26 per cent
from A$873 per ounce (US$686 per ounce) in the March quarter
to A$1,103 per ounce (US$839 per ounce) in the June quarter due
to higher cost of sales before amortisation and depreciation,
partially offset by lower capital expenditure and higher gold sold.
Agnew/Lawlers
June
2018
March
2018
Gold produced
000’oz
56.8
58.6
Gold sold
000’oz
56.9
60.0
Yield
g/t
5.79
6.44
AISC and AIC
A$/oz
1,383
1,402
US$/oz
1,044
1,103
Gold production decreased by 3 per cent from 58,600 ounces in
the March quarter to 56,800 ounces in the June quarter mainly due
to lower grades mined and processed.
Ore mined from underground increased by 11 per cent from
292,700 tonnes in the March quarter to 323,900 tonnes in the June
quarter as a result of additional ore minded from Waroonga and New Holland.
Head grade mined decreased by 8 per cent from 6.52
grams per tonnes to 6.01 grams per tonne partially offsetting the
additional tonnes mined. Gold mined increased by 2 per cent from
61,400 ounces to 62,600 ounces. In the June quarter tonnes
mined were sourced as follows: 168,000 tonnes at 8.3 grams per
tonne from Waroonga and 155,900 tonnes at 3.6 grams per tonne
from New Holland. This compared with 147,400 tonnes at 9.0
grams per tonne from Waroonga and 145,300 tonnes at 4.0 grams
per tonne from New Holland in the March quarter.
Tonnes processed increased by 8 per cent from 282,900 tonnes
in the March quarter to 304,900 tonnes in the June quarter The
combined yield decreased by 10 per cent from 6.44 grams per
tonne to 5.79 grams per tonne
.
Cost of sales before amortisation and depreciation, decreased by
17 per cent from A$60 million (US$47 million) in the March quarter
to A$50 million (US$37 million) in the June quarter due to a
decrease in mining costs of A$2 million (US$2 million) as a result
of the mix between ore and capital development. In addition, a
gold-in-circuit credit of A$2 million (US$1 million) in the June
quarter compared with a gold-in-circuit charge of A$6 million
(US$5 million) in the March quarter. The credit to cost in the June
quarter was primarily due to a build-up of stockpiles with more ore
mined than processed. During the March quarter, there was a 900
ounce drawdown of gold-in-circuit and a decrease in the average
cost of stockpiled ore and gold-in-circuit.
Capital expenditure increased by 19 per cent from A$21 million
(US$16 million) to A$25 million (US$19 million) mainly due to
increased capital development expenditure with more capital
development and less ore development in the June quarter.
All-in sustaining costs and total all-in cost decreased by 1 per cent
from A$1,402 per ounce (US$1,103 per ounce) in the March
quarter to A$1,383 per ounce (US$1,044 per ounce) in the June
quarter due to lower cost of sales before amortisation and
depreciation, partially offset by higher capital expenditure and
lower gold sold.