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Gold Fields Faces Setback in Salares Norte Project Gold Fields Faces Setback in Salares Norte Project

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Gold Fields (NYSE:GFI) faced a dramatic -10.7% decline in Thursday’s trading, following a significant reduction in the 2024 production forecast for the Salares Norte project in Chile. The company now estimates a delay of four months, with first gold production expected in April rather than the previously anticipated commencement this month. This unforeseen setback stems from several delays related to COVID-19 and adverse weather conditions, prompting the company to revise its initial projections.

Back in November, Gold Fields had expressed optimism about the project’s timeline and anticipated the commencement of gold production this month. However, a series of unexpected challenges thwarted these plans, leading to the disappointing revision.

In light of these obstacles, Gold Fields (GFI) has adjusted its FY 2024 production volume outlook for Salares Norte to a range of 220K-250K gold equivalent oz, a significant reduction from the earlier guidance of 400K-430K gold equivalent oz. The company attributed these amendments to β€œrecent delays to the pre-commissioning process due to rework required on critical safety aspects relating to the cyanide circuit and other reagent circuits,” as well as challenges related to the availability of personnel for the primary contractor at the project.

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