Gold Fields cuts production guidance after severe winter weather in Chile (NYSE:GFI)

gold fields (New York Stock Exchange: GFI) -8.4% Pre-market Thursday after Cut production guidance for the full year Due to worse than expected winter weather in Chile, limiting the intensification of the new Salares Norte project.

Gold Fields (GFI) said it now expects production This year of 2.2 million – 2.3 million ounces of gold, down from the previous forecast of 2.33 million – 2.43 million ounces, mostly due to lower expected production from Salares Norte, which is now expected at 90 thousand – 180 thousand ounces compared to its previous forecast of 2.2 million – 2.3 million ounces of gold. 220 thousand-240 thousand ounces.

The early onset of the winter events led to material freezing in the pipelines of the processing plant at Salares Norte, causing the plant to temporarily close, the miner said.

The company said the plant has been restarted, but commissioning and operation over the winter period is expected to remain a challenge, creating uncertainty about production levels.

As a result of lower production expectations, Gold Fields (GFI) also raised its 2024 all-in sustaining cost forecast to $1,470-$1,530 per ounce from previous guidance of $1,410-$1,460 per ounce.

The $1.2 billion Salares Norte open pit mine — located in Chile's Atacama region at a high altitude where winters can be harsh — delivered its first gold in March after suffering several delays due to bad weather and labor shortages, and is seen as… It's an open-pit gold mine. The main driver of the company's plan to increase production.