Name of the Project
Salares Norte gold project.

Location
Atacama region, northern Chile.

Project Owner/s
Minera Gold Fields Salares Norte Ltda (MGFSNL), in which Gold Fields indirectly holds a 100% interest.

Project Description
Salares Norte is proposed as an openpit mining operation using conventional mining equipment. 

Average gold equivalent production for the first five full years of mine life (2025 to 2029) is expected to be 485 000 oz/y at an all-in cost (AIC) of $790/equivalent ounces oz (in 2024 money), while gold equivalent ounces produced over the life-of-mine (from 2025 to 2033) is expected to be 360 000 oz/y at an AIC of $820/equivalent ounces (in 2024 money).

Potential Job Creation
The project is expected to about 900 permanent jobs.

Net Present Value/Internal Rate of Return
The project has an estimated net present value, at a 7.5% discount rate, of $654-million and an internal rate of return of 25%, with a payback of 2.2 years.

Capital Expenditure
Gold Fields reported in March 2024 that the total capital cost remains in line with the guidance provided in February 2024 at $1.18-billion to $1.2-billion.

Planned Start/End Date
Production started in March 2024.

Latest Developments
Gold Fields has revised its group-wide full-year production guidance downward, from between 2.33-million and 2.43-million ounces to between 2.20-million and 2.30-million ounces, owing to a production revision because of the early onset of winter.

The production guidance for Salares Norte has been revised down, from the previously indicated gold-equivalent ounces range of between 220 000 oz and 240 000 oz, to between 90 000 oz and 180 000 oz.

Ramp-up at Salares Norte has been negatively impacted on by the early onset of winter – resulting in the freezing of material in the piping of the process plant and, consequently, in the temporary shutdown of the plant – in recent weeks.

The plant has been restarted; however, commissioning and ramp-up during winter are expected to continue to be challenging, creating uncertainty on production levels during the winter months.

Gold Fields has, however, assured shareholders that the design criteria of the plant will be capable of handling winter weather at steady state, and that total project capital costs remain in line with guidance of $1.18-billion to $1.2-billion.

Meanwhile, Gold Fields advised shareholders on May 17 that Salares Norte had received an urgent and transitionary measure (MUT) from Chile’s Superintendence of Environment (SMA), ordering the temporary suspension of the dismantling of Rocky Area No 3 (R3) as part of its approved Chinchilla rescue and relocation plan.

The project received an updated notice from the SMA on June 5, extending the suspension of dismantling R3 for a further 120 days.

As part of the initial MUT, the SMA requested additional information detailing the monitoring activities undertaken at R3.

Salares Norte submitted this information, which included endoscopic probe searches and night camera recordings. Gold Fields continues to engage with the SMA to progress the Chinchilla capture and relocation plan. In accordance with the approved plan, Gold Fields is not planning any capture and relocation activities during the winter months.

The company remains committed to the safe capture and relocation of the protected Chinchilla species, and Salares Norte continues to work with the SMA and independent environmental experts on all aspects of this programme.

Key Contracts, Suppliers and Consultants
Fluor (engineering, procurement and construction management).

Contact Details for Project Information
Gold Fields, email Investors@goldfields.com.