Mining giant, GoldFields has announced a 4% decrease in total gold production in Ghana in 2022.

This was primarily driven by the decreased production at Damang in the Western region due to the completion of the Damang pit cutback as well as lower production at Asanko, also in the Western North region.

Total managed production decreased to 838 kilo ounce in 2022, from 871koz in 2021.

This was primarily driven by the decreased production at Damang due to the completion of the Damang pit cutback as well as lower production at Asanko. All-in costs increased by 10% to $1,220/ per ounce in 2022 from US$1,112/oz in 2021.

The region produced adjusted free cash flow (excluding Asanko) of $219 million in 2022 compared to $292 million in 2021.

“As previously noted, we continue to work on the future of both Damang and our share in Asanko and will provide an update to the market in due course. The political and economic environment in Ghana has become more challenging with developments in the latter part of 2022 and the early part of 2023 particularly concerning”.

“We continue to engage with government individually and through industry bodies to reiterate our stance on key fiscal matters. The process of claiming certain rebates relating to our Development Agreements has become more onerous”, it added.

Tarkwa mine

Gold production increased by 2% to 531,600 ounces in 2022, from 521,700 ounces in 2021.

This is mainly due to higher tonnes processed and improved yield. Yield increased by 1% to 1.18g/t in 2022 from 1.17g/t in 2021 due to higher grades processed.

Ore rehandled from stockpiles was 1,250kt at a head grade of 1.42/t in 2022 compared to 3,336kt at a head grade of 0.78g/t in 2021.

All-in cost increased by 8% to $1,248/ per ounce in 2022 from US$1,155/oz in 2021 due to higher capital expenditure and higher cost of sales before amortisation and depreciation, partially offset by higher ounces sold.

Cost of sales before amortisation and depreciation increased by 20% to $371 million in 2022, from $310 million in 2021.

Damang mine

Gold production decreased by 10% to 230,000 ounces in 2022, from 254,400 ounces in 2021 due to lower yield as a result of lower grade of ore processed.

Yield decreased by 11% to 1.50g/t in 2022 from 1.68g/t in 2021. This is due to the completion of Damang Pit in November 2022 and mining through transition in the lower grades of Huni pit.

Cost of sales before amortisation and depreciation increased by 1% to $152 million in 2022 from $150 million in 2021.

Total capital expenditure increased by 157% to $60 million in 2022 from $23 million in 2021.

Sustaining capital expenditure increased by 185% to $50 million in 2022 from $17 milllion in 2021 mainly due to the higher capital waste tonnes mined from Huni pit.