Bull of the Day: Gold Fields (GFI)

Core Insights - Gold Fields Ltd. is experiencing significant growth due to record gold prices, with expected earnings growth of 107.6% this year [1][5][7] Production and Financial Performance - In H1 2025, attributable production increased by 24% to 1,136koz, with Salares Norte on track for commercial production in Q3 2025 [2] - All-in sustaining costs (AISC) were reported at US$1,682/oz, while all-in costs (AIC) were US$1,957 [2] - Adjusted free cash flow surged to $952 million from an outflow of $58 million in H1 2024 [2] Future Guidance - Gold Fields is on track to meet its full-year guidance, expecting attributable gold-equivalent production between 2.250Moz to 2.450Moz [4] - AISC is projected to be between US$1,500/oz and $1,650/oz, while AIC is expected to range from US$1,780/oz to $1,930/oz [4] Earnings Estimates - Analysts have raised earnings estimates for Gold Fields, with the 2025 Zacks Consensus increasing to $2.74 from $2.56, indicating a growth of 107.6% from last year's earnings of $1.32 [5] - The 2026 Zacks Consensus has also risen to $3.39 from $3.15, reflecting an additional 23.7% growth [5] Market Position and Valuation - Gold Fields is one of the largest gold miners globally, with a forward P/E ratio of 15.3, suggesting it remains undervalued despite recent price increases [7][12] - The company has a PEG ratio of 0.4, indicating a combination of growth and value, which is a rare characteristic [12] Dividend Policy - Gold Fields maintains a dividend policy of paying 30% to 45% of normalized earnings, with an interim dividend of 34% paid in H1 2025 [8] Stock Performance - Shares of Gold Fields have outperformed the Gold ETF in 2025, yet remain fundamentally cheap [9]