Gold Fields doubles down on growth with expanded Windfall project

Gold Fields (NYSE, JSE: GFI) says developing the Windfall gold project in Quebec still makes sense even though it may cost more than double a 2022 estimate.The company expects capital expenditure to be in a range of C$1.7-C$1.9 billion ($1.21-$1.35 billion) — reflecting a more comprehensive plan — up from a C$790 million projection three years ago. The Johannesburg-based miner bought the project from Osisko Mining last year for C$2.2 billion ($1.6 billion).“We went into this investment fully with our eyes open,” CEO Mike Fraser said on a Nov. 13 conference call about third-quarter operations. “On a fundamental value basis, given the asset, where it was, and the expansion potential, it will still be a good deal.”Windfall, Canada’s second-largest undeveloped gold mine by value, could produce 3.2 million oz. over a 10-year life at average annual output of 306,000 oz., according to a 2022 feasibility study. It shows an after-tax net present value (at a 5% discount rate) of C$1.2 billion, at a base case gold price of $1,600 per oz., and a 34% internal rate of return.Shares in Gold Fields rose 7.8% on Nov. 13 to 74.26 rand apiece in Johannesburg before easing to close at 68.51 rand on Monday. The company is valued at about 625 billion rand ($36.5 billion).‘Strong performance’In the quarter ended Sept. 30, Gold Fields reported what it described as a strong operational performance, with attributable gold production up about 6% quarter-on-quarter and about 22% year-on-year. All-in sustaining costs fell to about $1,835 per oz. from $2,054 in the second quarter. As per JSE rules, the company only reports full financial results twice a year.Gold Fields intends Windfall to produce 3 million oz. per year by 2030, then stabilize output between 2.5 million and 3 million oz. annually from 2031 through 2035. The company says it’s aiming for sustainable long-term growth and consistent high-volume output in the latter half of the decade.Fraser said the company is not aiming to be “the biggest gold company,” but to be defined as having the “highest quality.”The company is also balancing its growth investments with shareholder returns, planning to return $500 million to shareholders over the next two years through dividends and/or share buybacks.Gold Fields has agreed for an Indigenous-owned power line project, but still needs to finalize an impact-benefit agreement with the local First Nations community. The company was awarded the Excellence in Sustainable Development Award at the Quebec Mineral Exploration Association (AEMQ) Recognition Gala earlier this year.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com