Gold Fields (US:GFI)2025-08-22 17:50Production and Operational Performance - Group attributable production increased by 24% to 1,136koz in H1 2025, compared to 918koz in H1 2024[2][13] - South Deep's production increased by 31% year-on-year to 153koz in H1 2025, addressing previous operational challenges[14] - Gold production at Gruyere increased by 14% to 144,200 oz in H1 2025 from 126,900 oz in H1 2024, despite previous operational challenges due to significant rainfall[87] - Gold production at Granny Smith increased by 6% to 133,800 oz in H1 2025 from 125,900 oz in H1 2024, attributed to improved ore grade[90] - Gold production for South Deep increased by 31% to 4,762 kg (153.1 koz) in H1 2025 compared to 3,633 kg (116.8 koz) in H1 2024, driven by higher contributions from destress mining volumes and grades[98] - Gold production at Damang decreased by 28% to 51,700 oz in H1 2025 from 71,800 oz in H1 2024 due to lower yield and lower tonnes milled[101] - Gold production at Tarkwa decreased by 6% to 232,900 oz in H1 2025 from 247,700 oz in H1 2024 due to lower yield[104] - Gold production at Salares Norte was 120,800oz in H1 2025, a significant increase from 500oz in H1 2024, resulting in a 24,060% increase in production[107] Financial Performance - Adjusted free cash flow reached US$952m in H1 2025, a significant improvement from an outflow of US$58m in H1 2024[3][17] - Normalised earnings rose by 181% year-on-year to US$998m, or US$1.12 per share, compared to US$355m, or US$0.40 per share in H1 2024[16] - Gold Fields reported a 64% increase in revenue from US$2,124 million for the six months ended June 2024 to US$3,478 million for the six months ended June 2025, driven by a 17% increase in gold-equivalent ounces sold and a 40% increase in the gold price received[54] - Profit for the period increased by 163% from US$402m to US$1,056m, with net profit attributable to owners rising by 164% from US$389m to US$1,027m[65] - Cash inflow from operating activities increased by 204% from US$430m to US$1,306m, driven by higher profit before royalties and taxation[69] - Net profit for continuing operations increased to US$1,056.3m in June 2025 from US$402.4m in June 2024[120] - Revenue for the six months ended June 2025 increased to $3,477.5 million, up 63.7% from $2,123.9 million in June 2024[124] - Total comprehensive income for the year was $1,261.1 million, compared to $395.5 million in June 2024, reflecting a growth of 218.5%[125] Cost Management - All-in sustaining costs (AISC) decreased by 4% year-on-year to US$1,682/oz, while all-in costs (AIC) decreased by 5% to US$1,957/oz[8][14] - The Group's All-in Sustaining Cost (AISC) decreased by 4% to US$1,682/oz for the six months ended June 2025, down from US$1,745/oz in June 2024, primarily due to higher gold sold[85] - Total All-in Cost (AIC) decreased by 5% to US$1,957/oz for the six months ended June 2025, compared to US$2,060/oz in June 2024, driven by increased gold sales[86] - Cost of sales before amortisation and depreciation increased by 11% from US$1,076m for the six months ended 30 June 2024 to US$1,199m for the six months ended 30 June 2025[56] - Amortisation and depreciation increased by 40% from US$269m to US$377m for the same period, primarily due to increased production[57] Capital Expenditure and Investments - Gold Fields' total capital expenditure for the year is expected to be between US$1,490 million and US$1,550 million, with sustaining capital projected between US$940 million and US$970 million[43] - Total capital expenditure at St Ives increased by 54% to A$191 million (US$121 million) in H1 2025 from A$124 million (US$82 million) in H1 2024, mainly related to the renewables power project[94] - Total capital expenditure at South Deep increased by 13% to R930 million (US$51 million) in H1 2025 from R824 million (US$44 million) in H1 2024, due to increased capital development[99] - Total capital expenditure decreased by 9% to US$210m in H1 2025 from US$230m in H1 2024, primarily due to the inclusion of ramp-up capital in H1 2025[108] - The company raised US$750m through a notes offering with a coupon of 5.854% to repay outstanding loans from the acquisition of Osisko Mining Inc.[118] - A US$2,300m multi-currency bridge facility was established to fund the acquisition of Gold Road Resources Limited[119] Debt and Financial Health - The net debt to adjusted EBITDA ratio improved to 0.37x at the end of June 2025, with net debt decreasing by US$599m compared to December 2024[18][19] - Net debt as of June 2025 was US$1,487 million, down from US$1,981 million in March 2025, reflecting improved financial health[46] - Total borrowings as of June 2025 amounted to $2,164.6 million, down from $2,502.1 million in December 2024, showing a reduction in debt[140] - Net debt decreased to $1,487.3 million from $2,085.6 million, showing a reduction of 28.7%[126] Future Outlook and Strategic Initiatives - The company plans to enhance its market presence through strategic expansions in South Africa and Australia[180] - Future outlook indicates a focus on improving operational efficiency and reducing costs across all mining operations[180] - Gold Fields is pursuing the acquisition of Gold Road Resources Limited as part of its future business strategy[185] - The company anticipates benefits from acquisitions or joint ventures, which may enhance its operational capabilities[185] - Gold Fields aims to successfully renew and retain mining rights and licenses, which are critical for its ongoing projects[185] - The Integrated Annual Report 2024 will provide further details on business prospects and financial positions[185] - Gold Fields emphasizes the importance of climate and ESG-related targets in its future planning[185]