(Reuters) -South Africa’s Gold Fields’ on Thursday announced a three-month delay to its Salares Notre project in Chile which will hit its 2023 gold production, sending its shares lower.
The shares were down 5.28% at 0820 GMT.
Salares Notre, initially expected to produce its first ore in the first quarter of 2023 which was later delayed until the second, now expects to come online in the final quarter.
Gold Fields said COVID-19 and severe weather were causing the delays at the project, which is expected to produce at least 450,000 ounces of gold per annum in the first seven years of operations.
“In addition to these challenges, ongoing skills shortages faced by the main contractor at Salares Norte have resulted in further delays, with first gold now expected to be achieved in Q4,” the miner said in a statement.
The company’s gold production is now expected to be 2.25 million to 2.3 million ounces this year, down from 2.4 million ounces in 2022.
Gold Fields said it would continue to explore opportunities to expand production through acquisitions of both greenfield projects and producing assets, despite its failed bid to buy Canada’s Yamana Gold late last year.
A $202 million break fee payment from the failed bid drove Gold Fields’ headline annual profit 19% higher, offsetting cost pressures.
Headline earnings per share (HEPS) – the main profit measure in South Africa – rose to $1.19 in 2022 from $1.00 the previous year.
The miner, which has operations in South Africa, Australia, Ghana, Peru and Chile, recorded a 3% rise in gold output last year, topping its revised guidance of 2.31 million to 2.36 million ounces.
Gold Fields declared a final dividend of 4.45 rand ($0.2443) per share, bringing its total payout for 2022 to 7.45 rand.
($1 = 18.2117 rand)
(Reporting by Nelson Banya; editing by Subhranshu Sahu and Jason Neely)
