Gold Fields has announced a significant increase in its investment for the Windfall gold project in Quebec. The company has revised its capital expenditure estimate to C$1.7-C$1.9 billion, up from the initial C$790 million projection from 2022. This new estimate reflects a more comprehensive development plan for both surface and underground operations. The company made the announcement during a Capital Markets Day media conference call, on November 13.
Gold Fields plans to steadily increase its production over the coming five years. The company aims to boost its annual output to approximately three million ounces by 2030. Following this growth phase, Gold Fields intends to stabilize its production between 2.5 million and 3 million ounces annually from 2031 through 2035.
This strategy demonstrates the company’s commitment to sustainable long-term growth and consistent high-volume output in the latter half of the decade. The company is also balancing its growth investments with shareholder returns, planning to return C$500 million to shareholders over the next two years through dividends and/or share buybacks.
CEO Mike Fraser expressed confidence in the project. He stated: “We went into this investment fully with our eyes open. On a fundamental value basis, given the asset, where it was, and the expansion potential, it will still be a good deal.”
Fraser said they are not aiming to be “the biggest gold company,” but defined as having the “highest quality.”
Gold Fields expects Windfall to produce an average of 306,000 ounces of gold annually. The company projects an after-tax Net Present Value of C$1.2 billion for the project. Windfall boasts an impressive Internal Rate of Return of 34%. Gold Fields estimates the All-in Sustaining Cost for the project at $758 per ounce. These key metrics underscore the potential profitability and efficiency of the Windfall operation.
Notably, Gold Fields has prioritized building strong relationships with local First Nations communities. The company pointed to its innovative First Nations-owned power line project, which aims to provide sustainable energy for the mine while creating economic opportunities for Indigenous partners.
On January 18, 2024, Osisko Mining Inc. announced that the 85 km long 69 kV hydro-electric power line built, owned and operated by the Waswanipi Cree First Nation and its related business entities had been completed on schedule, and grid power had successfully been connected to the Windfall Project.
The power line provides much-needed grid power to a major gold mine project owned by the Windfall Mining Group (a partnership between Osisko Mining Inc. and Gold Fields Windfall Holdings Inc.), allowing the mine to move away from costly and CO2-emitting diesel generated electricity.
This transmission line is one of the first large energy infrastructure projects to be wholly-owned by an Indigenous community in Canada and the first such project in the province of Quebec.
However, it’s important to note that Gold Fields still needs to finalize an impact-benefit agreement with the local First Nations community. This agreement is crucial for ensuring that the project moves forward in a way that respects Indigenous rights and provides tangible benefits to the community.
Gold Fields has received industry recognition for its sustainable development practices. Gold Fields was awarded the Excellence in Sustainable Development Award at the Quebec Mineral Exploration Association (AEMQ) Recognition Gala earlier this year.
With gold prices currently above $4,100 per ounce, Gold Fields aims to increase its annual production to 2.5-3 million ounces by the end of the decade. Construction at Windfall is slated to begin in the second quarter of 2025, with first gold production expected in late 2026 or early 2027.
As Gold Fields advances the Windfall project, finalizing the impact-benefit agreement and maintaining strong relationships with First Nations partners will be critical to the project’s success and the company’s broader sustainability goals.
More information is posted on www.GoldFields.com.
Secure your wealth today — buy gold bullion directly through our trusted partner, Sprott Money.
Source: MINING.COM – Read More
