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Mar 31, 2024
Gold Fields Q1 2024 Earnings Report
Gold Fields faced production challenges in Q1 2024 due to weather disruptions and operational delays.
Key Takeaways
Gold Fields had a weak start to 2024 with a drop in production volumes and higher costs. Adverse weather, mainly in Australia and Chile, as well as commissioning delays at Salares Norte, negatively impacted performance. Despite lower earnings, the company maintained its annual guidance.
Gold-equivalent production dropped to 464,000 oz due to weather impacts and delays.
Realized gold price was $2,100/oz, up YoY.
AISC rose significantly to $1,738/oz amid lower volumes and fixed cost absorption.
Net debt increased to $1.14 billion with net debt-to-EBITDA at 0.55x.
Gold Fields
Gold Fields
Gold Fields Revenue by Geographic Location
Revenue by Geographic Location
Global Revenue
CapyFin.com Forward Guidance
Gold Fields maintained FY2024 guidance despite a weak Q1, expecting operational recovery and ramp-up at Salares Norte.
Positive Outlook
- FY2024 production guidance reaffirmed at 2.2Moz–2.3Moz.
- Improved H2 performance expected from Salares Norte ramp-up.
- AISC forecast range held steady between $1,410–$1,460/oz.
- Operational improvements underway in Australia and Chile.
- Gold price outlook remains supportive of margins.
Challenges Ahead
- Q1 production impacted by severe weather in multiple regions.
- Higher AISC due to lower throughput and fixed cost absorption.
- Delayed commissioning at Salares Norte affected output.
- Free cash flow turned negative amid lower earnings.
- Rising royalties and inflationary pressures continue to weigh on costs.