Gold Fields Results
2020
10
The impact of COVID-19 on site is mitigated primarily through rigorous
on-site testing and screening. An employee self-declaration form,
submitted via the WhatsApp social media platform, provides an access
permit on successful completion and temperature monitoring.
The mine has purchased testing equipment which provides for about 80
tests a day. Mine medical protocols provide for COVID-19 positive and
investigated cases to be quarantined at home or at the mine’s isolation
and quarantine facility managed by an external provider. A mine case
manager monitors all cases and contact tracing.
Shaft schedules and rosters have also been amended to ensure
physical distancing in vertical transport of employees underground.
Support for local community ranges from food donations to assisting
local government in their anti-COVID-19 programmes. South Deep and
Corporate Office directors, managers and employees made a R15m
donation to South Africa’s Solidarity Fund, aimed at offering social and
economic support to organisations and businesses impacted by the
pandemic.
Cost and production impact
In May, South Deep was forced to revise its gold production targets
down from 8,000kg to 7,000kg for 2020 as a result of the various
lockdowns imposed by government.
Operational costs incurred as a result of COVID-19 interventions were
R86m in 2020 and included costs related to PPE, sanitisers, medical
supplies, testing equipment and kits, and alterations to buildings to set
up the mines quarantine and isolation facilities.
West Africa
Impact on our workforce
COVID-19 report Ghana (as at 15 February 2021)
Total
Tested
5,573
Positive
560
Negative
4,988
Awaiting results*
25
Active cases*
80
Hospitalised*
3
Recovered
480
Died
0
* Note: “Awaiting results”, “Active cases” and “Hospitalised” refers to the current figures
As at 15 February 2021, we have had a total of 560 COVID-19 cases
among employees and contractors, of which 80 are currently active.
We have had no death at our Tarkwa and Damang mines, but at the
Asanko mine, managed by Galiano Gold, Galiano COO Josephat
Zvaipa passed away after contracting COVID-19.
Mitigation actions
After an initial surge in cases, mostly among contractors at the Tarkwa
and Damang mines, Gold Fields Ghana has successfully managed its
COVID-19 cases and contained the spread of the virus at the mine sites
and the Accra office. During December 2020 and January 2021, when
the country experienced a pick-up in COVID-19 infections, there has
been a slight rise in the number of cases at our mines, but these have
been picked up and isolated speedily.
Strict adherence to government and company protocols is key, including
contact tracing, testing and isolation, full-body sanitising, appointing
host community COVID-19 ambassadors, and travel restrictions,
among others. A new four weeks-on, two weeks-off roster system was
introduced to ensure less exposure by our employees to the virus
outside the workplace, but the system has since reverted to the pre-
pandemic roster schedule. Employees of the two major contractors
(E&P and BCM) are subject to the same protocols, and, where feasible,
are kept separate from Gold Fields employees.
The mines’ isolation facilities have 86-bed capacity, with two facilities
located at Tarkwa and one at Damang. The mines are seeking to
conduct testing in-house, but have been delayed pending approval by
the authorities.
Community support programmes and donations have been channelled
via the Gold Fields Ghana Foundation. During 2020, the Foundation
has spent about US$910,000, on items and supplies to local clinics and
community organisations, including ambulances, sanitisers and PPE.
Cost and production impact
Gold Fields Ghana to date has spent just over US$2m on programmes
and infrastructure to deal with the pandemic, including the community
donations. On-site measures include isolation facilities, increased
busing and testing facilities. Production output during 2020 was not
affected.
Revenue
Attributable equivalent gold production, (including Asanko) increased by
2% from 2.195Moz in 2019 to 2.236Moz in 2020. Attributable equivalent
gold production at Asanko decreased marginally from 113,000oz in
2019 to 112,500oz in 2020. Revenue from Asanko is not included in
Group revenue as Asanko results are equity accounted.
During 2020, a decision was taken to align the production month-end
with the calendar month-end, which resulted in a once-off addition of 10
production days in H1 2020. The impact of the extra production days is
estimated at 45koz, while the lost production from COVID-19 related
stoppages is approximately 78koz, comprising South Deep at 32koz
and Cerro Corona at 46koz.
At the South Africa region, production at South Deep increased by 2%
from 6,907kg (222,100oz) in 2019 to 7,056kg (226,900oz) in 2020.
The increase was due to the productivity improvement programmes
introduced in 2019 starting to bear fruit, despite the operation being
negatively impacted by COVID-19 restrictions. Gold sold increased by
2% from 6,907kg (222,100oz) to 7,056kg (226,900oz).
Attributable gold production at the West African operations (including
Asanko), increased by 3% from 767,700oz in 2019 to 786,900oz in 2020
mainly due to increased production at Damang as mining progressed
into the main ore body at the Damang Pit Cutback (DPCB). Managed
gold produced and sold at Tarkwa increased by 1% from 519,100oz in
2019 to 526,300oz in 2020. At Damang, managed gold produced and
sold increased by 7% from 208,400oz in 2019 to 223,000oz in 2020.
Gold production at Asanko decreased marginally from 113,000oz (45%
basis) in 2019 to 112,500oz (45% basis) in 2020. Gold sold decreased
by 2% from 112,000oz (45% basis) to 109,700oz (45% basis).
Attributable equivalent gold production at Cerro Corona in Peru,
decreased by 29% from 291,300oz in 2019 to 206,100oz in 2020 mainly
as a result of COVID-19 restrictions on production (46Koz) and a lower
price factor (22Koz), as well as lower grades mined in line with the
current year plan. Total managed gold equivalent production decreased
by 29% from 292,700oz in 2019 to 207,100oz in 2020. Gold equivalent
ounces sold decreased by 31% from 296,900oz to 205,500oz.
Gold production at the Australian operations increased by 11% from
914,300oz in 2019 to 1,016,800oz in 2020 mainly due to the inclusion of
Gruyere for a full year in 2020 with the operation reaching commercial
levels of production at the end of September 2019. At St Ives, gold
production increased by 4% from 370,600oz in 2019 to 384,900oz
in 2020. Gold sold increased by 8% from 363,300oz to 393,800oz.
At Agnew, gold production increased by 6% from 219,400oz in 2019
to 233,300oz in 2020. Gold sold increased by 6% from 219,600oz to
233,500oz. At Granny Smith, gold production decreased by 2% from
274,800oz in 2019 to 269,600oz in 2020. Gold sold decreased by 3%
from 274,800oz to 265,200oz. At Gruyere gold production (100% basis)
increased by 161% from 99,100oz in 2019 to 258,200oz in 2020. The
Group’s share of gold production at Gruyere increased by 161% from
49,500oz in 2019 to 129,100oz in 2020. Gold sold increased by 280%
from 33,700oz in 2019 to 128,000oz in 2020.
The average US Dollar gold price achieved by the Group (excluding
Asanko) increased by 27% from US$1,388/eq oz in 2019 to US$1,768/
eq oz in 2020. The average Rand gold price increased by 41% from
R659,111/kg to R928,707/kg. The average Australian Dollar gold price
increased by 27% from A$2,007/oz to A$2,551/oz. The average US Dollar
gold price for the Ghanaian operations (excluding Asanko) increased by
28% from US$1,387/oz in 2019 to US$1,773/oz in 2020. The average
equivalent US Dollar gold price, net of treatment and refining charges,
for Cerro Corona increased by 34% from US$1,344/eq oz in 2019 to
US$1,795/eq oz in 2020. The average US Dollar/Rand exchange rate
weakened by 13% from R14.46 in 2019 to R16.38 in 2020. The average
Australian/US Dollar exchange rate weakened by 1% from A$1.00 =
US$0.70 to A$1.00 = US$0.69.
Gold equivalent ounces sold (excluding Asanko) increased by 3% from
2.14Moz in 2019 to 2.20Moz in 2020.
Revenue increased by 31% from US$2,967m in 2019 to US$3,892m in
2020 due to the higher gold sold and higher gold price received.