World number four gold miner Gold Fields’ $160-million Tarkwa expansion remains on schedule and within budget, investment bank Merrill Lynch says in a recent note following a visit to Gold Fields’s Ghana gold mines.
The Tarkwa expansion consists of an $85-million investment in a carbon-in-leach mill and $75-million on a programme that will see Gold Fields take over the mining of Tarkwa from contractors.
“Management estimates that by the end of 2004, they would have spent $70-million on the new mill, which they expect to start commissioning in July 2004,” Merrill Lynch said. The conversion to Gold Fields’ managed mining is set to commerce in June 2004 and estimated costs savings are $11,2-million in the first year.
“One of the most promising aspects of the mine is its flexibility to expand production in a rising gold price environment with little extra cost,” Merrill Lynch said.
In Gold Fields’ 2003 financial year, the Tarkwa mine contributed 540 000 ounces to the group’s total bullion output of 4,33-million ounces.
At 1145, Gold Fields was quoted at R82,80, down R1,19 or 1,4% from Thursday’s close. – I-Net Bridge