On Feb. 17, gold miner GFI.US reported its annual report for the year ended Dec. 31, 2021, in which it said that its improved South Deep gold mine, led by Chief Executive Chris Griffith, had ended years of losses and began to deliver returns for the company.
It is understood that, South Deep is located on the third largest known gold-bearing orebody and is the only remaining mine in the gold mining area of South Africa. The mine has lost money for years in the past and has failed to turn things around because of power shortages and regulatory uncertainty in South Africa. In 2021, however, the company said, South Deep's full-year gold production rose 29 per cent year-on-year and net cash income rose 157 per cent year-on-year.
In addition, the company said it expected production of the mine to grow by about 30 per cent to 34.5-375000 ounces over the next three to four years.
As a result of increased production, Jintian's net profit in 2021 rose 9.2 per cent year-on-year to $789 million. In addition, the company said it would pay a dividend of 2.60 rand per share, which would bring its total dividend for the year to 4.70 rand per share.
Like rival AngloGold Ashanti Ltd. (AU.US, Jintian has shifted its focus to higher-margin operations in Ghana, Australia and Latin America. CEO Griffith said the company is expected to increase production to about 2.7 million ounces by 2024, driven by new mines in Chile and improved South Deep operations.
Griffith also pointed out that about 90% of the, Salares Norte project has been completed and will start production in the first quarter of next year. Production at the mine is expected to reach 200000 ounces in 2023 and to 550000 ounces the following year, the company said.
