Gold Fields’ profits jumps after improved second half
Group meets its revised guidance for production volumes and costs
20 February 2025 - 08:13
by Jacqueline Mackenzie
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Gold Fields’ South Deep mine near Johannesburg. Picture: SUPPLIED
An improved operational and financial performance in the second half helped Gold Fields post a 36% rise in normalised profit and meet its revised guidance for production volumes and costs.
The miner, which has eight operating mines in Australia, Ghana, Peru and SA and two gold projects in Canada and Chile, reported normalised profit of $1.227bn for the year to end-December from $899.9m a year ago.
Headline earnings rose to $1.188bn from $837.3m, translating to headline earnings per share (HEPS) of 133c from 94c before.
Revenue increased by 16% to $5.202bn due to a 25% higher gold price partially offset by 10% lower gold-equivalent ounces sold.
Profit for the year from continuing operations increased by 73% to $1.291bn.
A final dividend of R7 per share was declared, taking the total dividend per share to R10, up 10% year on year.
Business Day TV spoke to the miner's CEO, Mike Fraser.
CEO Mike Fraser said 2024 was a year of two halves for the miner, with a “challenging” first half of the year followed by a “significant improvement” in the safety, operational and financial performance in the second half.
“The assets that were impacted by weather-related or operational challenges recovered during the second half of the year, contributing to Gold Fields posting a strong set of second-half results and meeting our revised group guidance for production volumes, all-in-sustaining costs (AISC) and all-in- costs (AIC),” he said.
“Encouragingly, this momentum has continued into the new year, positioning our portfolio well to deliver a marked operational and financial improvement in 2025,” he said.
During 2024, Gold Fields’ net debt increased by $1.062bn due in part to the $1.45bn payment for the acquisition of Osisko Mining in October. The group ended 2024 with net debt of $2.086bn.
For 2025, attributable gold equivalent production is expected to be between 2.25-million to 2.450-million ounces compared with 2.071-million ounces delivered in 2024.
AISC are expected to be between $1,500/oz and $1,650/oz, and AIC between $1,780/oz and $1,930/oz.
Capital expenditure levels were expected to ramain elevated in 2025, given the remaining capital budgeted for the renewables microgrid at St Ives, the pre-development capital planned for Windfall, as well as sustaining capex across the portfolio, to maintain the group’s production base.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Gold Fields’ profits jumps after improved second half
Group meets its revised guidance for production volumes and costs
An improved operational and financial performance in the second half helped Gold Fields post a 36% rise in normalised profit and meet its revised guidance for production volumes and costs.
The miner, which has eight operating mines in Australia, Ghana, Peru and SA and two gold projects in Canada and Chile, reported normalised profit of $1.227bn for the year to end-December from $899.9m a year ago.
Headline earnings rose to $1.188bn from $837.3m, translating to headline earnings per share (HEPS) of 133c from 94c before.
Revenue increased by 16% to $5.202bn due to a 25% higher gold price partially offset by 10% lower gold-equivalent ounces sold.
Profit for the year from continuing operations increased by 73% to $1.291bn.
A final dividend of R7 per share was declared, taking the total dividend per share to R10, up 10% year on year.
Business Day TV spoke to the miner's CEO, Mike Fraser.
CEO Mike Fraser said 2024 was a year of two halves for the miner, with a “challenging” first half of the year followed by a “significant improvement” in the safety, operational and financial performance in the second half.
“The assets that were impacted by weather-related or operational challenges recovered during the second half of the year, contributing to Gold Fields posting a strong set of second-half results and meeting our revised group guidance for production volumes, all-in-sustaining costs (AISC) and all-in- costs (AIC),” he said.
“Encouragingly, this momentum has continued into the new year, positioning our portfolio well to deliver a marked operational and financial improvement in 2025,” he said.
During 2024, Gold Fields’ net debt increased by $1.062bn due in part to the $1.45bn payment for the acquisition of Osisko Mining in October. The group ended 2024 with net debt of $2.086bn.
For 2025, attributable gold equivalent production is expected to be between 2.25-million to 2.450-million ounces compared with 2.071-million ounces delivered in 2024.
AISC are expected to be between $1,500/oz and $1,650/oz, and AIC between $1,780/oz and $1,930/oz.
Capital expenditure levels were expected to ramain elevated in 2025, given the remaining capital budgeted for the renewables microgrid at St Ives, the pre-development capital planned for Windfall, as well as sustaining capex across the portfolio, to maintain the group’s production base.
Total capex is expected to be $1.49bn-$1,55bn.
mackenziej@arena.africa
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