CORRESP 1 filename1.htm CORRESP

LOGO

 

October 11, 2023   

       

    Gold Fields Limited    
     

Reg. 1968/004880/06

150 Helen Road, Sandown,

Sandton, 2196

Via EDGAR      
     

 

Postnet Suite 252

United States Securities and Exchange Commission

Division of Corporation Finance

Office of Energy & Transportation

100 F Street, N.E.

Washington, D.C. 20549

Attention: John Coleman and Craig Arakawa

      

Private Bag X30500

Houghton, 2041

South Africa

 

Tel  +27 11 562-9700

Fax   +27 11 562-0000

www.goldfields.com

 

Re:

Gold Fields Limited

Form 20-F for the Fiscal Year Ended December 31, 2022

Filed March 30, 2023

File No. 001-31318

Dear Messrs. Coleman and Arakawa:

I refer to your letter dated September 12, 2023 setting forth comments of the Staff of the Division of Corporation Finance of the Securities and Exchange Commission (the “Staff”) relating to the annual report on Form 20-F for the fiscal year ended December 31, 2022 (the “2022 Form 20-F”) of Gold Fields Limited (the “Company” and, together with its subsidiaries, “Gold Fields” or the “Group”) (File Number 001-31318).

Gold Fields’ responses to the Staff’s comments on the 2022 Form 20-F are set forth below. To facilitate the Staff’s review, we have included in this letter the captions and numbered comments from the Staff’s comment letter in italicized text and have provided our responses immediately following each numbered comment.

Form 20-F for Fiscal Year Ended December 31, 2022 Filed March 30, 2023

Summary Disclosure of Mining Operations Pursuant to Item 1303 of Regulation S-K under the Securities Act, page 30

 

1.

We note your summary disclosure includes operating properties, however does not appear to include all properties in which you have a direct or indirect economic interest, as required by Item 1303(a)(1) of Regulation S-K. For example, we note your disclosure on page 84 of your Integrated Annual Report regarding strategic investments that have not been included in your summary table. Please revise your summary disclosure to include all properties in which you have a direct or indirect economic interest, as required by Item 1303(a)(1) of Regulation, including the disclosure required under Item 1303(b) of Regulation S-K.

 

 

Directors: YGH Suleman (Chair), M Preece ** (Interim Chief Executive Officer), PA Schmidt** (Chief Financial Officer), A Andani #, PJ Bacchus†, MC Bitar@, TP Goodlace, JE McGill^, SP Reid^, PG Sibiya, CAT Smit.

South African unless stated, ^Australian, †British, @Chilean, #Ghanaian, ** Executive Director

Company Secretary: Anré Weststrate

Response:

The Company respectfully acknowledges the Staff’s comment. Beginning with the annual report on Form 20-F to be filed for the fiscal year ended December 31, 2023 (the “2023 Form 20-F”), the Company proposes to incorporate the ownership interest information contained under the subheading “Strategic Investments” on page IAR-84 of the 2022 Form 20-F as well as the location, size, stage, mine type, commodity and mineralisation style of each of its Non-Core Investments (as defined below), under the new heading “Non-Core Investments” in the section entitled “Summary disclosure of mining operations pursuant to Item 1303 of Regulation S-K under the Securities Act”. The Company will also present maps displaying the location of all such investments in accordance with Item 1303(b)(1).

The Company confirms that this disclosure, including Gold Fields’ relevant shareholding and market value of such holdings, constitutes the information related to such investments as the Company considers material to an investor’s understanding of its mining operations in the aggregate pursuant to Item 1303(b)(2)(iii). For completeness, the Company respectfully submits the basis of its materiality assessment as follows:

Over the years, Gold Fields has acquired interests in the capital of several smaller mining and mineral exploration companies. As at December 31, 2022, Gold Fields held minority shareholdings in Galiano Gold Inc. (“Galiano Gold”), Rusoro Mining Ltd., Chakana Copper Corp., Magmatic Resources Limited, Lefroy Exploration Ltd., Lunnon Metals Ltd., Hamelin Gold Ltd., Torq Resources Inc., Tesoro Gold Limited and Far Southeast Gold Resources (together, the “Non-Core Investments”).

The below table sets out Gold Field’s interest in each of the Non-Core Investments, along with the respective market value, carrying value and percentage of total assets of each as at December 31, 2022.

 

     As at December 31, 2022

 

  

Investment

 

      Capital stake

 

     Market value
of
shareholding

 

     Carrying
value of
shareholding

 

     Carrying
value as
percentage of
total assets

 

  
           (U.S.$ millions)     (U.S.$ millions)        

Galiano Mining(1)

      9.8 %      11.7       11.7       0.16 % 

Rusoro Mining

      24.8 %      5.2       0.0       0.00 % 

Chakana Copper

      17.9 %      2.0       2.0       0.03 % 

Magmatic Resources

      6.5 %      1.2       1.2       0.02 % 

Lefroy Exploration

      13.6 %      3.8       3.8       0.05 % 

Lunnon Metals

      24.0 %      40.6       12.4       0.17 % 

Hamelin Gold

      10.0 %      1.1       1.1       0.01 % 

Torq Resources

      15.0 %      8.4       8.4       0.11 % 

Tesoro Gold

      14.9 %      4.6       4.6       0.06 % 

Far Southeast Gold Resources

      40.0 %      0.0 (2)      0.0 (2)      0.00 % 

Others(3)

      —       1.6       1.6       0.02 % 

Total

        80.2       46.8       0.64 % 

 

Notes:

            

 

  (1)

As at December 31, 2022, Gold Fields held a 9.8% stake in Galiano Gold. The market value of this capital investment was U.S.$11.7 million, of which Gold Fields recognised a carrying value of U.S.$11.7 million (0.16% of total assets) for the fiscal year ended December 31, 2022. In addition to this capital shareholding, Gold Fields has a joint venture with Galiano Gold pursuant to which Gold Fields, through a subsidiary, holds a 45% interest in Asanko Gold Ghana Limited (“Asanko”), Galiano Gold’s sole mining property. Gold Fields has provided the summary disclosure required under Item 1303(b)(1) in respect of its interest in Asanko in the 2022 Form 20-F.

  (2)

As at December 31, 2022, Gold Fields held a 40% stake in Far Southeast Gold Resources, which manages the Far Southeast project in the Philippines. Gold Fields has determined that there is currently no reasonable prospect of economic extraction from the project and that the market value and the carrying value of its investment in the project was nil for the year ended December 31, 2022.

 

  (3)

Represents de minimis investments in AngloGold Ashanti Limited, RareX Limited, Australian Gold and Copper Limited, Orsu Metals Corp., Vizsla Copper Corp. and Amarc Resources Ltd.

Based on the above analysis, and in light of the principles-based disclosure contemplated by Item 1303(b)(2)(iii), the Company will disclose the location, size, stage, mine type, commodity and mineralisation style of each Non-Core Investment in tabular format in the 2023 Form 20-F as well as the type, amount and value of its interests in such Non-Core Investments. Except with respect to Asanko, in respect of which Gold Fields will continue to provide the summary information set out in Item 1303(b), the Non-Core Investments have only a de minimis impact on the Company’s financial results and are not material from a strategic, operational or reputational perspective or in any other respect. The Company has therefore determined that there is no substantial likelihood that a reasonable investor would attach importance to additional information on the mining properties of its Non-Core Investments in determining whether to invest in Gold Fields’ securities.

In Appendix A, the Company has produced the information to be presented under the heading “Non-Core Investments” in the 2023 Form 20-F and future Form 20-F filings thereafter.

Exhibits

 

2.

We are unable to locate your mining and processing schedule in the Cerro Corona Copper and Gold Mine technical report summary dated December 31, 2022, filed as Exhibit 96.8. For example, page 95 includes a reference to the Cerro Corona Copper and Gold Mine mining and processing schedule in Section 12.2, however the schedule appears to be missing. Additionally in Table 19.1.1 on page 96 of the Cerro Corona technical report summary, we are unable to reconcile the quantities sold, with the LOM processed, when applying the recovery percentage. Please advise.

Response:

The Company acknowledges the Staff’s comment. The Company confirms that the reference to the Cerro Corona Copper and Gold Mine mining and processing schedule in Section 12.2 on page 95 of the Cerro Corona Copper and Gold Mine technical report summary dated December 31, 2022 (“2022 Cerro Corona Technical Report Summary”) was a typological error and should instead reference the processing schedule in section 14.2. Further, Table 19.1.1 on page 96 of the 2022 Cerro Corona Technical Report Summary also contained minor errors of a non-material nature, arising from a minor variation when depletion was applied in the calculation of metal content as between the techno-economic and reserve models. The Company submits that as a result, tables 1.4.1, 1.5.1, 11.2.1, 14.2.1, 18.2.1, 19.1.2, 19.3.1, 19.3.2, 19.3.3, 19.3.4, 19.3.5., 19.3.6 and 19.3.7 as well as text in Sections 1.8 and 19.1 of the 2022 Cerro Corona Technical Report Summary included similar minor errors related to the application of the depletion and calculation of metal content. The Company will file an updated technical report summary for Cerro Corona for the year ending December 31, 2023 as exhibit 96.8 to the 2023 Form 20-F (the “2023 Cerro Corona Technical Report Summary”) to correct these non-material errors in the 2022 Cerro Corona Technical Report Summary.

In Appendix B, the Company has reproduced Tables 1.4.1, 1.5.1, 11.2.1, 14.2.1, 18.2.1, 19.1.1, 19.1.2, 19.3.1, 19.3.2, 19.3.3, 19.3.4, 19.3.5., 19.3.6 and 19.3.7 and the text in Sections 1.8 and 19.1 of the 2022 Cerro Corona Technical Report Summary with the proposed indicative revisions to be included in the 2023 Cerro Corona Technical Report Summary. Tables 19.1.1 and 19.1.2 contain minor and immaterial indicative adjustments to align the usage of certain units of measurements and the rounding of financial figures.

If you have any questions or further comments, please contact me at 011 27 11 562 9796 or pschmidt@goldfields.co.za.

Sincerely,

/s/ Paul Schmidt

Paul Schmidt

Chief Financial Officer

Gold Fields Limited

 

 cc:

   

Kelly Carter, Gold Fields Limited

Julian Verbeek, Gold Fields Limited

Mike Bienenfeld, Linklaters LLP

Appendix A

Illustration of proposed changes to the Form 20-F for the fiscal year ending December 31, 2023

Proposed disclosure under new heading “Non-Core Investments” in section entitled “Summary disclosure of mining operations pursuant to Item 1303 of Regulation S-K under the Securities Act”

Non-Core Investments

Over the years, Gold Fields has acquired strategic interests in several smaller mining companies, including in Australia, Chile, Ghana and Peru. As at December 31, 2022, Gold Fields held minority shareholdings in Galiano Gold Inc., Rusoro Mining Ltd., Chakana Copper Corp., Magmatic Resources Limited, Lefroy Exploration Ltd., Lunnon Metals Ltd., Hamelin Gold Ltd., Torq Resources Inc., Tesoro Gold Limited and Far Southeast Gold Resources (together, the “Non-Core Investments”).

The following graphic sets out the geographical distribution of the Non-Core Investments with the exception of Galiano Gold, the location of which is disclosed under “Summary Disclosure of Mining Operations Pursuant to Item 1303 of Regulation S under the Securities Act—Overview”.

Rusoro Mining

LOGO

Chakana Copper, Torq Resources and Tesoro Gold

LOGO

Magmatic Resources

LOGO

Lefroy Exploration Resources, Hamelin Gold and Lunnon Metals

LOGO

Far Southeast

LOGO

The following table sets out an overview of the Non-Core Investments.

 

     

Primary

Project

    Commodity    Location   

Ownership

Type

   

Size

(hectares)

    Stage   

Mine Type and
Mineralisation

Styles

               
Galiano    Asanko    Gold    Ghana    Shareholding in listed company and Joint Venture    21,214    Production    Open pits, Orogenic
           

Rusoro

Mining

    El Callao    Gold    USA    Shareholding in listed company    Claim to a nationalised project
           

Chakana

Copper

    Soledad    Gold, Copper    Peru    Shareholding in listed company    4,203    Exploration    Porphyry
           

Torq

Resources

    Andrea    Copper    Chile    Shareholding in listed company    1,200    Exploration    Target open pit, Porphyry and Epithermal
   Margarita    Gold, Copper    Chile    1,445    Exploration    Target open pit, IOCG and Porphyry
   Santa
Cecilia		    Gold, Copper    Chile    3,239    Exploration    Porphyry and Epithermal
               
Tesoro Gold    El Zorro    Gold    Chile    Shareholding in listed company    72,249    Exploration    Target open pit, Intrusion Related Gold
           
Magmatic
Resources		    Myall    Copper, Gold    Australia    Shareholding in listed company    24,370    Exploration    Target open pit and underground, Porphyry
   Parkes    Gold    Australia    15,100    Exploration    Target open pit and underground, Orogenic
   Wellington North    Copper, Gold    Australia    17,680    Exploration    Target open pit and underground, Porphyry
               

Lefroy

Exploration

    Lefroy
Gold		    Gold    Australia    Shareholding in listed company and Joint Venture    64,500    Exploration    Orogenic Gold
               

Hamelin

Gold

    West
Tanami		    Gold    Australia    Shareholding in listed company     248,900     Exploration    Orogenic Gold
           

Lunnon

Metals

    Foster,
Fisher		    Nickel    Australia    Shareholding in listed company    4,700    Exploration    Target underground, Nickel sulphide
           

Far

Southeast

Gold

Resources

   

Far

Southeast

    Gold, Copper    Philippines    Joint Venture    387    Development    Porphyry

As at December 31, 2022, the total market value of the Non-Core Investments was U.S.$80.2 million.(1) The following table sets out the value and Gold Fields’ interest of each Non-Core Investment.

 

Investment

 

  

 

 

   

Interest(1)

 

   

 

 

     

Market Value of

Shareholding(1)

 

         (%)           (U.S.$ millions)

Galiano Mining

      9.8%       11.7

Rusoro Mining

      24.8%       5.2

Chakana Copper

      17.9%       2.0

Magmatic Resources

      6.5%       1.2

Lefroy Exploration

      13.6%       3.8

Lunnon Metals

      24.0%       40.6

Investment

 

       

Interest(1)

 

          

Market Value of

Shareholding(1)

 

         (%)           (U.S.$ millions)

Hamelin Gold

      10.0%       1.1

Torq Resources

      15.0%       8.4

Tesoro Gold

      14.9%       4.6

Far Southeast Gold Resources

      40.0%       N/A

Others(2)

      —         1.6
          

 

Total

      —         80.2
          

 

 

 Notes:

 

 (1)

Market value and interest of investments to be updated as at December 31, 2023.

 

 (2)

Represents de minimis investments in AngloGold Ashanti Limited, RareX Limited, Australian Gold and Copper Limited, Orsu Metals Corp., Vizsla Copper Corp. and Amarc Resources Ltd.

Appendix B

Proposed amendments to Exhibit 98.6 – Cerro Corona Technical Report Summary

Proposed amendments to Table 1.4.1 (page 10 of 2022 Cerro Corona Technical Report Summary)

Proposed additions in yellow and proposed deletions are shaded in orange.

Table 1.4.1: Cerro Corona – summary of attributable gold and copper Mineral resources at the end of the fiscal year ended 31 December 2022 based on a gold price of $1,600/oz and copper price of $3.60/lb

 

       
    

Resources

(exclusive of Mineral reserves)

  

NSR
Cutoff

   Metallurgical recovery
      Amount/     Grade     Amount     Grade     Amount                 
                 
     (kt)  

Au/

(g/t)

  

Au/

(koz)

  

Cu/

(%)

  

Cu/

(Mlbs)

   ($/t)  

Au/

(%)

  

Cu/

(%)

 

Open pit Mineral resources

                 

OP measured Mineral resources

   33,250   0.51   547   0.34   249   16.4   66.7

75.9

   85.9

88.5

                 

OP indicated Mineral resources

   7,265   0.48   113   0.31   50   16.4   66.7

76.1

   85.9

88.2

                 

OP measured + indicated Mineral resources

   40,515   0.51   660   0.34   300   16.4   66.7

75.9-76.1

   85.9

88.2-88.5

                 

OP inferred Mineral resources

   145   0.38   2   0.33   1   16.4   66.7

76.0

   85.9

88.4

 

Stockpile Mineral resources

                 

SP measured Mineral resources – oxides

                                
                 

SP measured Mineral resources – sulphide

                                
                 

SP indicated Mineral resources

                                
                 

SP measured + indicated Mineral resources

                                
                 

SP inferred Mineral resources

                                
 

Total Cerro Corona Mineral resources

                 

Total measured Mineral resources 2022

   33,250   0.51   547   0.34   249            
                 

Total indicated Mineral resources 2022

   7,265   0.48   113   0.31   50            
                 

Total measured + indicated Mineral resources 2022

   40,515   0.51   660   0.34   300            
                 

Total inferred Mineral resources 2022

   145   0.38   2   0.33   1            
                 

Total M+I Mineral resources 2021

   37,454   0.46   557   0.32   264            
                 

Total Inferred Mineral resources 2021

   300   0.37   4   0.30   2            
                 

Total M+I Year on year difference (%)

   8 %   10 %   19 %   5 %   13 %            
                 

Total Inferred Year on year difference (%)

   -52 %   1 %   -51 %   12 %   -46 %            

 

 

 Notes:

 

 a)

Mineral resources are exclusive of Mineral reserves. Rounding of figures may result in minor computational discrepancies.

 

 b)

Mineral resources categories are assigned with consideration given to geological complexity, grade variance, drillhole intersection spacing and proximity of mining development.

 c)

Mineral resources quoted as diluted in-situ metric tonnes and grades. Metallurgical recovery factors have not been applied to the estimates. The approximate metallurgical recovery factors are 85.9% 89% for copper and 66.7% 76% for gold. The metallurgical recovery is the ratio, expressed as a percentage, of the mass of the specific mineral product recovered from ore treated at the process plant to its total specific mineral content before treatment. Cerro Corona mining operations vary according to the mix of the source material (e.g., oxide, transitional, fresh and ore type blend).

 

 d)

The metal prices used for the 2022 Mineral resources are based on a gold price of $1,600 per ounce and a copper price of $3.60 per pound. Open pit Mineral resources at the South American operations are similarly based on revenue factor 1.0 pits, appropriate mine design and extraction schedules. The gold price used for Mineral resources approximates 14 % higher than the selected Mineral reserve price.

 

 e)

The cutoff grade may vary per mine, depending on the respective costs, depletion schedule, ore type, expected mining dilution and expected mining recovery. The average cutoff grade value applied to the Mineral resources is: $16.4/t.

 

 f)

The Mineral resources are based on initial assessments at the resource gold price of $1,600/oz and copper price of $3.60/lb consider estimates of all Cerro Corona costs, the impact of modifying factors such as mining dilution and mining recovery, processing recovery and royalties. Mineral resources are also tested through the application of Environmental, Social and Governance (ESG) criteria to demonstrate reasonable prospects for economic extraction.

 

 g)

The Mineral resources are estimated at a point in time and can be affected by changes in the gold price, US Dollar currency exchange rates, permitting, legislation, costs and operating parameters.

 

 h)

Cerro Corona is 99.53 % attributable to Gold Fields and is entitled to mine all declared material located within the property’s mineral leases and all necessary statutory mining authorisations and permits are in place or have reasonable expectation of being granted.

 

 (3)

Source: Cerro Corona CPR, 2022

Proposed amendments to Table 1.5.1 (page 11 of 2022 Cerro Corona Technical Report Summary)

Proposed additions in yellow and proposed deletions are shaded in orange.

Table 1.5.1: Cerro Corona – summary of attributable gold and copper Mineral reserves at the end of the fiscal year ended 31 December 2022 based on a gold price of $1,400/oz and copper price of $3.40/lb

 

               
      Amount/     Grade     Amount     Grade     Amount    Cutoff
 grades/ 		   Metallurgical recovery
                 
     (Kt)  

Au/

(g/t)

  

Au/

(koz)

  

Cu/

(%)

  

Cu/

(Mlb)

   ($/t NSR)  

Au/

(%)

  

Cu/

(%)

 

Open Pit Mineral reserves

                 

OP proven Mineral reserves

   34,705   0.56   623   0.37   284   16.4   66.4 – 67.9

75.8

   83.1 – 84.4

88.8

                 

OP probable Mineral reserves

   2,006   0.47   30   0.33   14   16.4   66.4 – 67.9

76.0

   83.1 – 84.4

88.3

                 

OP total Mineral reserves

   36,711   0.55   653   0.37   298   16.4   66.4 – 67.9

75.8-76.0

   83.1 – 84.4

88.3-88.8

 

Stockpile Mineral reserves

                 

SP proven Mineral reserves

   13,185   0.52   219   0.34   100   16.4   59.5 – 67.2

75.9

   68.8 – 83.2

88.5

                 

SP probable Mineral reserves

                                
                 

SP total Mineral reserves

   13,185   0.52   219   0.34   100   16.4   59.5 – 67.2

75.9

   68.8 – 83.2

88.5

 

Total Mineral reserves

                 

Total proven Mineral reserves

   47,890   0.55   842   0.36   384            
                 

Total probable Mineral reserves

   2,006   0.47   30   0.33   14            
                 

Total Cerro Corona Mineral reserves 2022

   49,896   0.54   872   0.36   398            
             

Total Cerro Corona Mineral reserves 2021

   58,020   0.59   1,103   0.37   474        
             

Year-on-year difference (%)

   -14 %   -8 %   -21 %   -2 %   -16 %            

 

 

 Notes:

 

 a)

Rounding of figures may result in minor computational discrepancies.

 

 b)

Refer to Table 12.5.1 for year-on-year Mineral reserve comparison.

c)

Mineral reserve quoted as mill delivered metric tonnes and RoM grades, inclusive of all mining dilutions and gold losses except mill recovery. Metallurgical recovery factors have not been applied to the Mineral reserve figures. The approximate metallurgical recovery factors are 59.5% to 67.9% 76% for gold and 68.8% to 84.4% 89% for copper. The metallurgical recovery is the ratio, expressed as a percentage, of the mass of the specific mineral product recovered from ore treated at the process plant to its total specific mineral content before treatment. The recoveries for Cerro Corona vary according to the mix of the source material (e.g., oxide, transitional fresh and ore type blend) and method of treatment.

 

d)

The metal prices used for the 2022 life-of-mine (LoM) Mineral reserves are based on a gold price of $1,400/ounce and $3.40/lb copper. Open pit Mineral reserves at Cerro Corona are based on optimised pits and appropriate mine design and extraction schedules. The gold price and copper price used for Mineral reserves is detailed in Chapter 16, Marketing.

 

e)

Dilution relates to planned and unplanned waste and/or low-grade material being mined and delivered to the process plant. Ranges are given for those operations that have multiple orebody styles and mining methodologies. The mine dilution factors are 0 %.

 

f)

The mining recovery factor relates to the proportion or percentage of ore mined from the defined orebody at the gold price used for the declaration of Mineral reserves. This percentage will vary from mining area to mining area and reflects planned and scheduled reserves against actual tonnes, grade and metal mined, with all modifying factors and mining constraints applied. The mining recovery factors are 98 %.

 

g)

The cutoff grade may vary per mine, depending on the respective costs, depletion schedule, ore type, expected mining dilution and expected mining recovery. The average NSR cutoff value applied in the planning process is $16.4/t.

 

h)

An ounces-based Mine Call Factor (metal called for over metal accounted for) determined primarily on historic performance but also on realistic planned improvements where appropriate, is applied to the Mineral reserves. A Mine Call Factor of 100 % has been applied at Cerro Corona.

 

i)

Cerro Corona is 99.53 % attributable to Gold Fields.

 

(4)

Source: Cerro Corona CPR, 2022

Proposed amendments to Section 1.8 (page 13 of Cerro Corona Technical Report Summary)

Proposed additions in yellow and proposed deletions are shaded in orange.

1.8 Conclusions and Recommendations

The Mineral reserves currently support an 8 year LOM plan and values the Cerro Corona operation NPV at  LOGO at a gold price of $1,400/oz and copper price of $3.40/lb and a discount rate of 8.1%.

Proposed amendments to Table 11.2.1 (page 58 of 2022 Cerro Corona Technical Report Summary)

Proposed additions in yellow and proposed deletions are shaded in orange.

Table 11.2.1: Cerro Corona – summary of attributable gold and copper Mineral resources at the end of the fiscal year ended 31 December 2022 based on a gold price of $1,600/oz and copper price of $3.60/lb

 

     

Resources

(exclusive of Mineral reserves)

      NSR
Cutoff		     

Metallurgical

recovery

  
   Amount/      Grade      Amount      Grade      Amount  
   (kt)     

Au/

(g/t)

     

Au/

(koz)

     

Cu/

(%)

     

Cu/

(Mlbs)

      ($/t)     

Au/

(%)

     

Cu/

(%)

  
 

Open pit Mineral resources

 

             

OP measured Mineral resources

      33,250        0.51        547        0.34        249        16.4       

 66.7

75.9

  

 

     

 85.9

88.5

  

 

                 

OP indicated Mineral resources

      7,265        0.48        113        0.31        50        16.4       

 66.7

76.1

  

 

     

 85.9

88.2

  

 

             

OP measured + indicated Mineral resources

      40,515        0.51        660        0.34        300        16.4       

 66.7

75.9-

76.1

  

 

 

     

 85.9

88.2-

88.5

  

 

 

                 

OP inferred Mineral resources

      145        0.38        2        0.33        1        16.4       

 66.7

76.0

  

 

     

 85.9

88.4

  

 

 

Stockpile Mineral resources

 

                 

SP measured Mineral resources – oxides

                                                                        
             

SP measured Mineral resources – sulphide

                                                                        
             

SP indicated Mineral resources

                                                                        

$192 million $200 million

SP measured + indicated Mineral resources

                                                                   

SP inferred Mineral resources

                                                                   

Total Cerro Corona Mineral resources

 

Total measured Mineral resources 2022

      33,250       0.51       547       0.34       249                            

Total indicated Mineral resources 2022

      7,265       0.48       113       0.31       50                            

Total measured + indicated Mineral resources 2022

      40,515       0.51       660       0.34       300                               

Total inferred Mineral resources 2022

      145       0.38       2       0.33       1                            

Total M+I Mineral resources 2021

      37,454       0.46       557       0.32       264                            

Total Inferred Mineral resources 2021

      300       0.37       4       0.30       2                            

Total M+I Year on year difference (%)

      8 %       10 %       19 %       5 %       13 %                            

Total Inferred Year on year difference (%)

      -52 %       1 %       -51 %       12 %       -46 %                            

 

Notes:

 

a)

Mineral resources are exclusive of Mineral reserves. Rounding of figures may result in minor computational discrepancies.

 

b)

Mineral resources categories are assigned with consideration given to geological complexity, grade variance, drillhole intersection spacing and proximity of mining development.

 

c)

Mineral resources quoted as diluted in-situ metric tonnes and grades. Metallurgical recovery factors have not been applied to the estimates. The approximate metallurgical recovery factors are 85.9% 88% for copper and 66.7% 76% for gold. The metallurgical recovery is the ratio, expressed as a percentage, of the mass of the specific mineral product recovered from ore treated at the process plant to its total specific mineral content before treatment. Cerro Corona mining operations vary according to the mix of the source material (e.g., oxide, transitional, fresh and ore type blend).

 

d)

The metal prices used for the 2022 Mineral resources are based on a gold price of $1,600 per ounce and a copper price of $3.60 per pound. Open pit Mineral resources at the South American operations are similarly based on revenue factor 1.0 pits, appropriate mine design and extraction schedules. The gold price used for Mineral resources approximates 14 % higher than the selected Mineral reserve price based on the three-year trailing average ($1,789.45 per oz) to end December 2022, calculated on a monthly basis of the London afternoon fixing price of gold.

 

e)

The cutoff grade may vary per mine, depending on the respective costs, depletion schedule, ore type, expected mining dilution and expected mining recovery. The average cutoff grade value applied to the Mineral resources is: $16.382/t.

 

f)

The Mineral resources are based on initial assessments at the resource gold price of $1,600/oz and copper price of $3.60/lb consider estimates of all Cerro Corona costs, the impact of modifying factors such as mining dilution and mining recovery, processing recovery and royalties. Mineral resources are also tested through the application of Environmental, Social and Governance (ESG) criteria to demonstrate reasonable prospects for economic extraction.

 

g)

The Mineral resources are estimated at a point in time and can be affected by changes in the gold price, US Dollar currency exchange rates, permitting, legislation, costs and operating parameters.

 

h)

Cerro Corona is 99.53 % attributable to Gold Fields and is entitled to mine all declared material located within the property’s mineral leases and all necessary statutory mining authorisations and permits are in place or have reasonable expectation of being granted.

 

(5)

Source: Cerro Corona CPR, 2022

Proposed amendments to Table 12.3.1 (page 64 of 2022 Cerro Corona Technical Report Summary)

Proposed additions in yellow and proposed deletions are shaded in orange.

Table 12.3.1: Cerro Corona - summary of attributable gold and copper Mineral reserves at the end of the fiscal year ended 31 December 2022 based on a gold price of $1,400/oz and copper price of $3.40/lb

     Amount/   Grade   Amount   Grade   Amount  

Cutoff
grades/

 

    Metallurgical recovery
   (Kt)  

Au/

(g/t)

  

Au/

(koz)

  

Cu/

(%)

  

Cu/

(Mlb)

   ($/t NSR)   

Au/

(%)

   

Cu/

(%)

Open Pit Mineral reserves

OP proven Mineral reserves

    34,705   0.56   623   0.37   284   16.4    66.4 – 67.9

75.8

    83.1 – 84.4

88.8

OP probable Mineral reserves

    2,006   0.47   30   0.33   14   16.4    66.4 – 67.9

76.0

    83.1 – 84.4

88.3

OP total Mineral reserves

    36,711   0.55   653   0.37   298   16.4    66.4 – 67.9

75.8-76.0

    83.1 – 84.4

88.3-88.8

Stockpile Mineral reserves

SP proven Mineral reserves

    13,185   0.52   219   0.34   100   16.4    59.5 – 67.2

75.9

    68.8 – 83.2

88.5

SP probable Mineral reserves

                   

SP total Mineral reserves

    13,185   0.52   219   0.34   100   16.4    59.5 – 67.2

75.9

    68.8 – 83.2

88.5

Total Mineral reserves

Total proven Mineral reserves

    47,890   0.55   842   0.36   384        

Total probable Mineral reserves

    2,006   0.47   30   0.33   14        

Total Cerro Corona Mineral reserves 2022

    49,896   0.54   872   0.36   398        

Total Cerro Corona Mineral reserves 2021

    58,020   0.59   1,103   0.37   474        

Year-on-year difference (%)

    -14 %   -8 %   -21 %   -2 %   -16 %        

 

Notes:

 

a)

Rounding of figures may result in minor computational discrepancies.

 

b)

Refer to Table 12.5.1 for year-on-year Mineral reserve comparison.

 

c)

Mineral reserve quoted as mill delivered metric tonnes and RoM grades, inclusive of all mining dilutions and gold losses except mill recovery. Metallurgical recovery factors have not been applied to the Mineral reserve figures. The approximate metallurgical recovery factors are 59.5% to 67.9% 76% for gold and 68.8% to 84.4% 89% for copper. The metallurgical recovery is the ratio, expressed as a percentage, of the mass of the specific mineral product recovered from ore treated at the process plant to its total specific mineral content before treatment. The recoveries for Cerro Corona vary according to the mix of the source material (e.g., oxide, transitional fresh and ore type blend) and method of treatment.

 

d)

The metal prices used for the 2022 life-of-mine (LOM) Mineral reserves are based on a gold price of $1,400/ounce and copper price of $3.40/lb. Open pit Mineral reserves at Cerro Corona are based on optimised pits and appropriate mine design and extraction schedules. The gold price and copper price used for Mineral reserves is detailed in Chapter 14 Marketing.

 

e)

Dilution relates to planned and unplanned waste and/or low-grade material being mined and delivered to the process plant. Ranges are given for those operations that have multiple orebody styles and mining methodologies. The mine dilution factors are 0 %.

 

f)

The mining recovery factor relates to the proportion or percentage of ore mined from the defined orebody at the gold price used for the declaration of Mineral reserves. This percentage will vary from mining area to mining area and reflects planned and scheduled reserves against actual tonnes, grade and metal mined, with all modifying factors and mining constraints applied. The mining recovery factors are 98 %.

 

g)

The cutoff grade may vary per mine, depending on the respective costs, depletion schedule, ore type, expected mining dilution and expected mining recovery. The average NSR cutoff value applied in the planning process is $16.382/t.

 

h)

An ounces-based Mine Call Factor (metal called for over metal accounted for) determined primarily on historic performance but also on realistic planned improvements where appropriate, is applied to the Mineral reserves. A Mine Call Factor of 100 % has been applied at Cerro Corona.

 

i)

Cerro Corona is 99.53 % attributable to Gold Fields.

 

(6)

Source: Cerro Corona CPR, 2022

Proposed amendments to Table 14.2.1 (page 71 of 2022 Cerro Corona Technical Report Summary)

Proposed additions in yellow and proposed deletions are shaded in orange.

Table 14.2.1: Process plant – key requirements summary

 

Item    2022    2023    2024    2025    2026    2027    2028    2029    2030

Ore processed

    (kt)(t)    6,721    6,734    6,754    6,732    6,710    6,710    6,730    6,710    3,051

Plant power draw

    (MWhr)    150,177    147,225    147,634    146,147    144,147    146,153    146,496    146,571    147,375

Grinding media

    (t) – SAG    2,121    2,249    2,103    2,076    2,002    2,018    2,023    1,995    872

Grinding media

    (t) – BM    4,278    4,630    4,509    4,605    4,537    4,535    4,546    4,541    2,066

Lime

    (t)    15,620    21,328    20,890    20,054    20,324    20,740    20,382    20,324    9,241

                     

Frother

    (t)    59.1    69.6    60.7    62.7    65.0    65.2    66.7    65.7    35.1
                     

Collectors

    (t)    139.06    179.78    178.91    183.15    221.44    186.00    204.97    234.23    174.87
                     

Flocculants

    (t)    103.87    123.53    112.35    115.64    122.40    124.05    133.02    119.42    54.76
                     

New raw water *

    (Kt)    4,200    4,200    4,200    4,200    4,200    4,200    4,200    4,200    4,200
                     

Plant employees

    (No.)    130    130    130    130    130    130    130    130    130
                   

Plant Contractors

    328    328    328    328    328    328    328    328    328

 

 

 Notes:

 

  a)

*Projected Fresh Water Withdrawal

 

  b)

This summary is on a 100 % basis.

 Source: Cerro Corona CPR, 2022

Proposed amendments to Table 18.2.1 (page 93 of 2022 Cerro Corona Technical Report Summary)

Proposed additions in yellow and proposed deletions are shaded in orange.

Table 18.2.1: Operating costs forecast

 

                                                                                                                                                                                            
                   

Operating Cost

    Units    2023    2024    2025    2026    2027    2028    2029    2030
                   

Mining

    $ million    82.1    71.8    56.0    15.7    14.5    15.1    15.5    6.3
                   

Processing

    $ million    62.3    62.5    63.0    63.9    65.5    64.8    65.5    29.4
                   

G&A Operating

    $ million    61.5    57.3    53.8    45.2    41.5    39.8    40.4    17.7
                   

Other operating costs

    $ million    13.3    10.3    7.1    2.4    2.5    0.8 0.2    1.3 0.0    7.1
                   

Operating costs

    $ million    219.1    201.9    179.9    127.3    124.1    120.5
119.9		    122.7
121.4		    60.5

Proposed amendments to Section 19.1 (page 95 of Cerro Corona Technical Report Summary)

Proposed additions in yellow and proposed deletions are shaded in orange.

19.1 Key inputs and assumptions

The input parameters for the economic analysis are:

 

  ☐

The Mineral reserves disclosed in Section 12.3. No inferred Mineral resources are included in the economic analysis.

 

  ☐

The LOGO processing schedule disclosed in LOGO

 

  ☐

Process recoveries disclosed in Section 12.2.

 

  ☐

Capital costs disclosed in Section 18.1.

 

  ☐

Operating costs disclosed in Section 18.2.

 

  ☐

A reserve gold price of $1,400/oz and copper price of $3.40/lb as discussed in Section 12.2.

 

  ☐

A real discount rate of 8.1 %.

 

  ☐

A corporate tax rate of 29.5 %.

Proposed amendments to Table 19.1.1 (page 96 of 2022 Cerro Corona Technical Report Summary)

Proposed additions in yellow and proposed deletions are shaded in orange. Please note, the below proposed amendments include minor additional adjustments to conform the presentation of units and rounding of financial figures across the Cerro Corona Technical Report Summary.

mining and Section 12.2 Table 14.2.1

Table 19.1.1: LOM physical, operating cost and capital cost inputs and revenue assumptions

 

Sources    Units    2023    2024    2025    2026    2027    2028    2029    2030    2031    LOM
Open Pit (Gold)    LOM Processed    Koz    191.8

131.1

    150.0

102.1

    128.5

89.4

    -    -    -    -    -    -    322.6
   Process Recovery    %    68.4    68.0    69.6    -    -    -    -    -    -    68.6
   Commercial Payable    %    97.6    97.6    97.6    -    -    -    -    -    -     
   Sold*    Koz    128.0    99.6    87.3    -    -    -    -    -    -    314.9
Stockpiles (Gold)    LOM Processed    Koz    -    -    -    91.4

62.0

    67.6

46.5

    70.7

46.9

    95.5

61.1

    80.4

50.7

    -    267.2
   Process Recovery    %    -    -    -    67.9    68.9    61.0

61.6

    61.9    63.1    -    64.5
   Commercial Payable    %    -    -    -    97.6    97.6    97.6    97.6    97.6    -     
   Sold*    Koz    -    -    -    61.2    46.1    42.9

46.7

    57.7

59.6

    49.5    -    263.1
Open Pit (Copper)    LOM Processed    Mlb

Koz

    71.3

151.5

    66.6

141.2

    64.2

138.3

    -    -    -    -    -    -    431.0
   Process Recovery    %    87.5    87.3    88.7    -    -    -    -    -    -    85.9
   Commercial Payable    %    95.2    95.2    95.2    -    -    -    -    -    -     
   Sold*    Mlb

Koz

    59.4

144.2

    55.3

134.4

    54.2

131.7

    -    -    -    -    -    -    410.3
Stockpiles (Copper)    LOM Processed    Mlb

Koz

    -    -    -    47.0

99.7

    34.7

73.0

    43.3

82.3

    52.4

91.1

    20.2

35.4

    -    381.5
   Process Recovery    %    -    -    -    87.4    86.5    84.0

84.3

    83.2

83.0

    72.3    -    83.8
   Commercial Payable    %    -    -    -    95.2    95.2    95.2    95.2    95.2    -     
   Sold*    Mlb

Koz

    -    -    -    39.5

95.9

    29.1

70.6

    35.3

80.1

    41.5

86.7

    13.9

33.7

    -    367.0
Total Sold (Gold)    Koz    128.0    99.6    87.3    61.2    46.1    42.9

46.7

    57.7

59.6

    49.5         578.0
Total Sold (Copper)    Mlb

Kt

    59.4

26.9

    55.3

25.1

    54.2

24.6

    39.5

17.9

    29.1

13.2

    35.3

15.0

    41.5

16.2

    13.9

6.3

         145.2
                     
Total Sold (Gold Equiv. Oz)    Koz    272.2    234.0    219.0    157.1    116.7    126.8    146.3    83.2    1,355.2
Costs, Revenue and Cashflow    Revenue    $ million    381

362.3

    328

310.2

    307

289.5

    220

207.7

    163

154.3

    180

167.2

    222

193.6

    116

112.0

    -    1,797.0
   Operating Costs    $ million    219

219.1

    202

201.9

    180

179.9

    127

127.3

    124

124.1

    120

119.9

    123

121.4

    60

60.5

    -    1,154.1
   Capital Costs    $ million    44

44.5

    17

16.9

    25

24.8

    3

3.0

    1

1.4

    2

1.7

    1

0.8

    -

0.2

    -    93.2
   Other    $ million    29

14.7

    35

13.1

    25

12.6

    60

8.9

    36

8.4

    28

8.5

    23

6.7

    15

4.0

    30    76.8
   Royalties (~1 % sales)    $ million    5

3.6

    4

3.1

    3

2.9

    2

2.1

    2

1.5

    2

1.7

    2

1.9

    1

1.1

    -    18.0
   Interest (if applicable)    $ million    -    -    -    -    -    -    -    -    -    -
   Total Costs (Excl Tax)    $ million    298

281.9

    257

235.0

    233

220.2

    192

141.3

    163

135.3

    152

131.8

    149

130.8

    77

65.7

    30    1,342.0
   Taxes (Income tax)    $ million    44

44.3

    27

29.0

    27

21.1

    5

-

    -

-

    -

-

    -

-

    -

-

    -    94.4
   Cashflow    $ million    39

39.4

    44

43.6

    46

46.3

    22

22.3

    -

0.0

    29

27.4

    73

60.1

    40

38.4

    -30    247.8
   Discounted cashflow at 8.1 % (NPV)    $ million    38

37.9

    39

38.8

    38

38.1

    17

16.9

    -

0.0

    19

17.8

    44

36.2

    22

21.4

    -15    192.0

Notes:

 

a)

This table is based on the life-of-mine schedule for proved and probable Mineral reserves only and is on a 100 % basis.

 

b)

The Mineral resource and exploration required to replace depletion is not included in this techno-economic assessment.

 

c)

No inferred Mineral resources are included in the life-of-mine processing schedule or techno-economic evaluation.

Source: Cerro Corona CPR, 2022

Proposed amendments to Table 19.1.2 (page 96 of 2022 Cerro Corona Technical Report Summary)

Proposed additions in yellow and proposed deletions are shaded in orange. Please note, the below proposed amendments include minor additional adjustments to conform the presentation of units and rounding of financial figures across the Cerro Corona Technical Report Summary.

Table 19.1.2: Gold Fields 99.53 % Attributable Gold, FCF and NPV

                     
Sources    Units    2023     2024     2025     2026     2027     2028     2029     2030     LOM 
                     

99.53 % Attributable Gold

    koz   127.4     99.1 

99.2 

    86.9 

86.8 

    60.9 

61.0 

    45.9     42.7 

46.5 

    57.4 

59.3 

    49.3     — 

575.3 

                     

99.53 % Attributable Copper

    Mlb

kt

   59.1 

26.8 

    55.0 

25.0 

    53.9 

24.5 

    39.3 

17.8 

    29.0 

13.1 

    35.1 

14.9 

    41.3 

16.1 

    13.8 

6.3 

    — 

144.4 

                     

99.53% Cashflow

    $ million    39 

39.2 

    43 

43.4 

    46 

46.1 

    22 

22.2 

    0 

0.4 

    28 

27.2 

    72 

59.5 

    39 

38.3 

    -30 

276.5 

     

Discounted cashflow at 8.1 % (NPV)

    $ million    200 

191 

                        

Proposed amendments to Table 19.3.1 (page 97 of 2022 Cerro Corona Technical Report Summary)

Proposed additions in yellow and proposed deletions are shaded in orange.

Table 19.3.1: NPV sensitivity to changes in gold price 99.53 % attributable

               
Gold Price - real      -15 %      -10 %      -5 %      0 %      +5 %      +10 %      +15 %
               

Gold Price ($/oz)

      1,190      1,260      1,330      1,400      1,470      1,540      1,610
               

NPV ($million)

      113

117

      142      171

166

      200

191

      229

216

      258

240

      288

264

Source: Cerro Corona CPR, 2022

Proposed amendments to Table 19.3.2 (page 97 of 2022 Cerro Corona Technical Report Summary)

Proposed additions in yellow and proposed deletions are shaded in orange.

Table 19.3.2: NPV sensitivity to changes in gold grade 99.53 % attributable

               
Grade      -15 %      -10 %      -5 %      0 %      +5 %      +10 %      +15 %
               

NPV ($million)

      113

117

      142      171

166

      200

191

      229

215

      258

240

      288

264

Source: Cerro Corona CPR, 2022

Proposed amendments to Table 19.3.3 (page 98 of 2022 Cerro Corona Technical Report Summary)

Proposed additions in yellow and proposed deletions are shaded in orange.

Table 19.3.3: NPV sensitivity to changes in copper price 99.53 % attributable

               
Copper Price – real      -15 %      -10 %      -5 %      0 %      +5 %      +10 %      +15 %
               

Copper Price ($/lb)

      2.9      3.1      3.2      3.4      3.6      3.7      3.9
               

NPV ($million)

      76

92

      126

124

      151

158

      200

191

      250

224

      274

257

      324

290

Source: Cerro Corona CPR, 2022

Proposed amendments to Table 19.3.4 (page 98 of 2022 Cerro Corona Technical Report Summary)

Proposed additions in yellow and proposed deletions are shaded in orange.

Table 19.3.4: NPV sensitivity to changes in copper grade 99.53 % attributable

               
Grade      -15 %      -10 %      -5 %      0 %      +5 %      +10 %      +15 %
               

NPV ($ million)

      74

107

      116

135

      158

163

      200

191

      242

219

      284

246

      326

274

Source: Cerro Corona CPR, 2022

Proposed amendments to Table 19.3.5 (page 98 of 2022 Cerro Corona Technical Report Summary)

Proposed additions in yellow and proposed deletions are shaded in orange.

Table 19.3.5: NPV sensitivity to changes in capital costs 99.53 % attributable

 

               

Capital costs

      -15 %      -10 %      -5 %      0 %      +5 %      +10 %      +15 %
               

NPV ($ million)

      208

203

      205

199

      203

195

      200

191

      198

187

      195

183

      193

179

Source: Cerro Corona CPR, 2022

Proposed amendments to Table 19.3.6 (page 98 of 2022 Cerro Corona Technical Report Summary)

Proposed additions in yellow and proposed deletions are shaded in orange.

Table 19.3.6: NPV sensitivity to changes in operating costs 99.53 % attributable

 

               

Operating costs

      -15 %      -10 %      -5 %      0 %      +5 %      +10 %      +15 %
               

NPV ($ million)

      338

297

      292

262

      246

226

      200

191

      154

155

      108

120

      62

85

Source: Cerro Corona CPR, 2022

Proposed amendments to Table 19.3.7 (page 98 of 2022 Cerro Corona Technical Report Summary)

Proposed additions in yellow and proposed deletions are shaded in orange.

Table 19.3.7: NPV sensitivity to changes in discount rate 99.53 % attributable

               

Discount rate

      6.9 %      7.3 %      7.7 %      8.1 %      8.5 %      8.9 %      9.3 %
               

NPV ($ million)

      208

197

      205

195

      203

193

      200

191

      198

189

      195

187

      193

185

Source: Cerro Corona CPR, 2022