Gold Fields expects lower 810,000 gold output in 2012 third quarter

Gold miner, Gold Fields is expecting a lower rate of gold output in the third quarter of 2012, the company indicated in a statement released October 12, 2012.

The miner announced that attributable Group production for the 2012 third quarter “is expected to be 810,000 gold equivalent ounces” compared to 862,000 ounces it recorded during the second quarter of 2012 and 900,000 ounces in the corresponding quarter one year ago (Q3 2011).

According to Gold Fields, its international regions had a solid quarter, contributing 424,000 attributable gold equivalent ounces, despite the two-week closure of the heap leach facilities at the Tarkwa Gold Mine in Ghana.  This is compared to 425,000 gold ounces it had in the second quarter of 2012.

The miner’s recovered Agnew Gold Mine in Australia is expected to produce 48,000 ounces as against 37,000 ounces of gold in the second quarter of 2012.

The 386,000 as against second quarter 437,000 ounces contribution by the South Africa Region was negatively impacted by a loss of approximately 30,000 ounces as a result of the fire at the YaRona Shaft of the KDC Gold Mine during the quarter, and a further approximately 35,000 ounces as a result of the unprotected strike action at KDC and the Beatrix Gold Mine during the quarter, the company stated.

Gold Fields hints that the “Unit costs will be negatively impacted by the lower production.”

And the on-going unlawful strike action in South Africa, according to the miner is of concern and “will, even if resolved in the near term, increase the likelihood of major restructuring in the South African gold mining industry, including at Gold Fields.”

Gold Fields said it will release full results for the third quarter of 2012 Monday November 26, 2012.

By Ekow Quandzie