Gold Fields planning to spend big in 2021

Gold Fields, a global gold mining company, has reported a four-fold increase in headline earnings for the year ended December 2020. The gold miner declared a final dividend of 320 cents per share, rewarding its shareholders handsomely. Despite the challenges posed by the COVID-19 pandemic, Gold Fields is forging ahead with its strategic plans for 2021. Outgoing CEO Nick Holland sat down with CNBC Africa to discuss the company's performance, future outlook, and the steps being taken to navigate the ongoing crisis. Gold Fields operates in multiple countries, including South Africa, Ghana, Australia, Peru, and is in the process of building a new mine in Chile. The company is adopting a regionalized strategic approach to dealing with COVID-19, working with experts in each region to secure access to vaccines for its employees and surrounding communities. In South Africa, Gold Fields is collaborating with the minerals council and medical practitioners to expedite the vaccination process. With 40,000 employees, the company is well-positioned to swiftly implement vaccination programs once the vaccines become available. The goal is to protect the workforce and their families, recognizing the significant impact of the virus on both personal and economic levels. Despite the uncertainty surrounding the pandemic, Gold Fields remains optimistic about the future. Nick Holland emphasized the company's focus on profitability throughout market cycles, not solely reliant on high gold prices to generate revenue. The strategic investments in new projects, such as the Solaris Norte project in Chile and the Greer mine in Australia, are aimed at reducing production costs and ensuring long-term sustainability. With organic growth potential and a solid operational foundation, Gold Fields is poised to maintain its position as a top player in the global gold mining sector. Looking ahead to 2021, Gold Fields plans to allocate significant capital expenditure towards various projects. The company aims to invest around $1.2 billion, with a substantial portion earmarked for operations in South Africa and Ghana. Additionally, the Solaris Norte project in Chile is set to receive over $500 million in funding, highlighting the company's commitment to expansion and innovation. Holland expressed confidence in funding these initiatives internally, leveraging cash generation to support growth without the need for additional debt. However, he acknowledged that a significant drop in gold prices could impact the funding plan, necessitating potential adjustments. Despite the challenges, Gold Fields remains well-prepared to navigate various scenarios and ensure financial stability. Reflecting on the South African investment landscape, Holland emphasized the need for clarity and consistency in mining regulations to attract capital and drive economic growth. Addressing existing challenges and streamlining regulatory frameworks will be crucial to unlocking the full potential of the mining sector and creating sustainable employment opportunities. As Nick Holland prepares to step down and hand over the reins to incoming CEO Chris Griffith, the company is poised for a smooth transition. Griffith's proven track record and experience in the industry position him as a capable leader to steer Gold Fields towards continued success. Holland, after 31 years in the mining industry, expressed his love for the sector and hinted at a potential return in the future. As he prepares for a well-deserved break, Holland remains optimistic about the company's future under Griffith's leadership, emphasizing a shared commitment to modernizing mining operations and driving innovation for long-term growth.