In a recent update, major miner Gold Fields (NYSE:GFI) has made revisions to its 2024 gold production forecast due to severe winter weather conditions impacting its Salares Norte asset in Chile.
Located in Northern Chile, Salares Norte has experienced challenges caused by early and prolonged winter weather, leading to the freezing of materials in the piping of the process plant and resulting in temporary shutdowns. This unforeseen weather has disrupted the ramp-up phase, prompting the company to adjust its output targets.
Initially aiming for 220,000 to 240,000 gold equivalent ounces for 2024 at Salares Norte, Gold Fields has now revised this target to a range of 90,000 to 180,000 gold equivalent ounces. The lower range assumes no production until the end of August, with only subsystem testing taking place during this period. In contrast, the higher end anticipates a resumption of ramp-up activities by June 15, with full operation of Circuit C expected by August.
Despite these setbacks, the company has resumed operations at the Salares Norte plant. In response to the revised production forecast, Gold Fields has adjusted its overall group production guidance for this year to be in the range of 2.2 million to 2.3 million gold equivalent ounces, down from the previous range of 2.33 million to 2.43 million ounces.
Additionally, the company has updated its cost guidance, with all-in costs for the group in 2024 now expected to range between US$1,675 and US$1,740 per ounce, an increase from the previous range of US$1,600 to US$1,650. All-in sustaining costs have also been raised to US$1,470 to US$1,530 per ounce, compared to US$1,410 to US$1,460.
While focusing on overcoming operational challenges at Salares Norte, Gold Fields remains committed to its environmental responsibilities, including a Chinchilla capture and relocation program. The company is working closely with regulatory authorities and environmental experts to ensure compliance with all requirements.
For real-time updates, follow us on Twitter @INN_Resource. It’s important to note that the author, Giann Liguid, holds no direct investment interest in any company mentioned in this article.
