American depositary receipts (ADRs) of Gold Fields experienced a significant drop on Thursday following the company’s revision of its 2024 output forecast for the Salares Norte project in northern Chile.
As of 12:54 p.m. ET, ADRs were down by 11% at $14.44; however, it is worth noting that the stock has shown an impressive 38% surge over the past year.
Gold Fields, a South African gold-mining company, has announced a delay of four months in the first gold production from the Salares Norte project. Initially projected to begin this month, first gold production is now expected in April due to setbacks in pre-commissioning and commissioning activities.
The revised forecast for 2024 indicates production volumes in the range of 220,000 to 250,000 gold equivalent ounces. This is in contrast to the earlier estimate of 400,000 to 430,000 gold equivalent ounces.
Overall, Gold Fields’ Salares Norte project faces challenges and setbacks in meeting its production targets. While the stock has demonstrated strong performance in recent months, investors should be aware of the potential impact of this development on the company’s future prospects.
