Lockdown to cut Gold Fields’ South Deep output

Reuters | April 23, 2020 | 9:01 am Top Companies Africa Gold

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The South Deep mine, Gold Fields’ only asset in South Africa. (Image courtesy of Gold Fields.)

Gold Fields on Thursday said it expects to lose 32,000 ounces of production at its South African South Deep mine due to a nationwide lockdown.

Production at Cerro Corona will also be impacted by covid-19 related stoppages in Q2 2020, the company said.

The miner reported group gold production for the quarter ended March 31 was 537,000 ounces, down from 542,000 ounces a year earlier, with all regions tracking the annual guidance.

Gold Fields said that the impact of the pandemic has been relatively muted on operations, with production only slightly affected.

“However, the situation is fluid and there is the possibility of further lockdowns and restrictions in the countries in which we have a presence which may lead to production disruptions in future,” the company said.

The company’s stock on the NYSE traded at $8.05 per share, up 10,51% on Thursday. Gold Fields’ market value is $6.93 billion.

(By Tanisha Heiberg; Editing by Jason Neely)