Globally diversified gold miner Gold Fields has declared a dividend of R7 a share for the six months ended June 30, compared with the dividend of R3 a share declared for the first half of the 2024 financial year, as its net profit increased to $1.03-billion, from $389-million for the prior comparable period.

The miner generated adjusted free cash flow of $952-million for the six months under review, compared with an outflow of $58-million in the first half of 2024.

Gold Fields CEO Mike Fraser attributed the group’s strong financial performance for the six months to June 30 to a solid operational performance, coupled with a higher gold price.

The average gold price for the six months under review was $3 089/oz, compared with the average price of $2 211/oz in the first half of 2024.

Group attributable production increased by 24% year-on-year to 1.14-million gold-equivalent ounces (GEOs).

Gold Fields remains on track to meet its production guidance of between 2.25-million and 2.54-million GEOs for the full-year to December 31.

The group was particularly pleased with the increased throughput at its Salares Norte mine, in Chile, which it says was supported by winterisation measures that enabled the processing plant to operate through the early winter period.

The company notes that the mine is on track to achieve commercial production levels during the third quarter of this year and steady-state throughput in the fourth quarter of this year as planned.

As Salares Norte approaches steady-state production, supported by sustained higher pricing, Gold Fields expects to generate strong free cash flow that will enable investment in value-accretive projects, the payment of competitive dividends, further balance sheet optimisation and additional shareholder returns.

The South Deep mine, in South Africa, produced 153 000 oz of gold in the first half of this year – a 31% year-on-year increase – owing to the company having dealt with backfill and ground condition challenges during 2024.

There was also a notable step-up in production at St Ives, in Australia, in the second quarter of the year, driven by increased volumes and grade, which drove a 33% year-on-year increase in the mine’s production in the first half of this year.

Although the Gruyere gold mine, in Western Australia, had some challenges in the plant during the first half of this year, production increased by 14% year-on-year for the first half of the year.

Meanwhile, unit costs remained elevated during the first half of this year, driven by general industry inflation, increased royalties owing to higher gold prices realised and higher capital expenditure (capex).

Capex increased by 11% year-on-year to $665-million. The full-year capex guidance remains unchanged at between $1.49-billion and $1.55-billion.

The group spent $503-million in sustaining capital during the first half of this year to maintain the integrity of its asset base. The full-year guidance for sustaining capital remains at between $940-million and $970-milllion.

All-in costs (AIC), however, decreased by 5% year-on-year to $1 957/oz and all-in sustaining costs (AISC) by 4% year-on-year to $1 682/oz.

Gold Fields says both AIC and AISC are expected to improve further during the second half of this year.

Gold sales for the six months under review increased to 1.13-million ounces, from 961 000 oz in the prior comparable period.

Net debt decreased by $599-million since December 31, 2024, with core net debt at $1.06-million as at June 30.

Gold Fields says its balance sheet remains robust with a net debt-to-adjusted earnings before interest, taxes, depreciation and amortisation ratio of 0.37 times at the end of June.

“We feel very pleased with the half-year results. It is a strong contribution from every single one of our businesses in our portfolio, and we're looking forward to a safe and predictable second half which allows us to deliver a clean set of market expectations,” Fraser said during a presentation of the group’s results.

RENEWABLES
Meanwhile, the group pointed out that renewables accounted for 17% of the group’s electricity consumption during the six months under review – similar to the 17.3% reported for the first half of 2024.

Renewables provided 46% of electricity consumed at Gold Fields’ Agnew mine, in Australia, and 14% of the South Deep mine’s electricity consumption.

Further, all seven wind turbine foundations for the St Ives renewables project were completed during the first half of this year, with the turbines scheduled to arrive during the second half of the year.