Gold Fields poised to surge

As these initiatives mature, the company will turn its attention to optimisation, improving operational efficiencies and performance, improving metal recoveries and other things to squeeze out costs and value across its portfolio.

"We are eliminating wastage. When you frame things as cost-cutting, you lose your people. … We are starting on our tier one assets and expect benefits from 2024 onwards," interim chief executive Martin Preece told delegates at the 2023 Gold Forum Americas in Colorado Springs in Colorado, US.

Preece said Salares Norte is 96% complete, with a recent hiccup as contractor delays meant the company had to reschedule the time slots to commission the mill and filter press, with first production delayed until December and US$20 million added to the $1 billion initial capital expenditure, which itself was an overrun from the original $860 million.

"We have moved 67Mt of waste and ore as at the end of June, with 1.2Mt of ore containing 380,000oz on the stockpile," said Preece.

M&A

Once these things are completed, the company may focus on acquisitions. The company bought its 50% stake in Windfall earlier this year, with the deal following hot on the heels of the company's frustrated attempt to buy Yamana Gold. Both transactions were running simultaneously.

"Windfall was happening at the same time as Yamana. If we had gone ahead with Yamana, we would have gone ahead with Windfall, too. Not increasing our bid was about discipline. People were unhappy with the premium, and we wouldn't get into a bidding war. It would have been very difficult for South African competing with Canadian guys  [once Agnico Eagle Mines and Pan American Silver made a competing bid] coming over the top," Preece told Mining Journal.

When the company does open its chequebook again, it could be for another Canadian asset.

"We like Canada. Australia is quite expensive at the moment, but in Canada, you can buy reasonably priced assets. Our corporate development teams are not running around with a wallet full of money to buy assets. However, if something value accretive comes along, we will take advantage of it. We have big cash coming from Salares Norte, so we are in a position where we don't have to do anything," said Preece.

Windfall

While losing out on 50% of Canadian Malartic was a blow, Preece is philosophical and, having successfully acquired 50% of Windfall, sees delayed gratification in the company's future, given its high grade and exploration potential.

As part of the deal with JV partner Osisko Mining, Gold Fields will invest $75 million in exploration. It also had the foresight to include Osisko's exploration concessions in the deal, which it had not done when it entered the Gruyere joint venture in Australia with Gold Road Resources.

"We wanted the district potential so that you can invest capex into a process plant and then say, let's keep going. There's about 2500km2 of concessions we have access to," said Preece.

Osisko has drilled 8Mm at Windfall with up to 35 drill rigs at a time and more than 12km of underground development from surface to 650m depth. It will produce an initial 300,000ozpa, exploiting a resource of 7.4Moz grading 9gpt.

"The work we've done at Windfall has given us a world-class mine, but all that money $800 million) was spent within about a 5km2 area. It is a district analogous to the Val d'Or camp or the Timmons camp; the geology is the same. Windfall shouldn't be a singularity; there should be dozens of Windfalls over time," Osisko Mining chief executive John Burzynski told Mining Journal.

The original iteration of Osisko Mining lost Canadian Malartic in what started as a hostile takeover bid by Goldcorp.

That experience meant the management team was open to obtaining a JV partner to reduce the likelihood of it happening again. "The thinking was to sell half to a partner that guarantees we get to keep it and that we are fully financed," said Burzynski.

Work at Windfall is progressing despite a closure over the summer due to a forest fire threat. Permitting began in March, with is an 18-month process. The JV work programme includes the continuation of the underground ramp for another 200m vertical, and surface work on things like water containment. 

Salares Norte

Gold Fields also sees future opportunities in Chile, where it continues to explore and where it has signed agreements with a couple of exploration juniors. This search may also see it enter into a JV for future development opportunities.

"To be recognised in our businesses, we have built up our capability to joint venture to access assets. I think it's a core capability," said Preece.

In addition to Windfall, Gold Fields expects big things from its Tarkwa-Iduapriem joint venture in Ghana with AngloGold Ashanti. This pairs Gold Fields' superior processing capability with AngloGold's higher grade to produce, likely Africa's biggest gold mine with production jumping to 900,000ozpa at an all-in sustaining cost of $1000/oz, with an 18-year mine life.