Gold Fields FY HEPS up 19%

Shares of Gold Fields took a few more steps lower today following yesterday more than 4 per cent close. The Gold Miner reported increased production during the year to December but sales were lower and costs rose. Gold fields declared a total dividend of R7.45, which includes half of the $200 million break up fee paid by Yamana, Canada's biggest gold miner which Gold fields tried to acquire but walked away from following a counter offer. Gold Fields interim CEO, Martin Preece, discussed the company's performance and future outlook in an interview with CNBC Africa. Preece addressed concerns about the energy crisis in South Africa and the potential impact on the mining sector. He emphasized the importance of energy stability for economic growth and highlighted Gold Fields' efforts to expand its renewable energy projects to reduce reliance on the national grid. Despite recent incentives announced by the government to promote renewable energy investments, Preece emphasized that Gold Fields' focus on renewables is driven by long-term sustainability rather than short-term incentives. The company aims to achieve net zero emissions by 2050 and views renewables as a value-accretive opportunity. On the topic of Gold Fields' financial performance, Preece acknowledged the challenges faced during the reporting period, including the failed acquisition of Yamana and external factors such as the pandemic and geopolitical tensions. However, he praised the regionalized operating model for delivering solid results and maintaining financial discipline. The company saw a three percent growth in production year-on-year, driven by investments in sustaining CAPEX and operational efficiency. Preece addressed concerns about future production levels, noting that ongoing investments in projects like Solaris in Chile and South Deep in South Africa will support production growth in the coming years. In response to questions about the sovereign debt crisis in Ghana and its potential impact on Gold Fields' operations, Preece remained optimistic about the long-term prospects of the business. While the impairment of the TACO asset had a significant impact on the company's bottom line, Gold Fields has a development agreement with the Ghanaian government that provides stability and protection. Preece expressed confidence in the Ghanaian government's ability to navigate the current fiscal crisis and reaffirmed Gold Fields' commitment to the asset for the next 15 to 20 years. Overall, Preece's comments reflected a mix of challenges and opportunities for Gold Fields in a complex economic environment, with a focus on sustainable growth and operational resilience.