Gold Fields FY24 HEPS jumps 41%

Gold Fields, one of the leading gold producers, has announced a remarkable 42% increase in annual profit, reflecting the surge in gold prices. In an exclusive interview with CNBC Africa, CEO Mike Fraser discussed the company's outstanding performance and future outlook. Fraser highlighted the confluence of factors driving the strong gold price, enabling Gold Fields to reinvest in the business for long-term growth and provide substantial returns to shareholders. The company declared a record dividend of R$7 per share, totaling $438M for the year. Fraser emphasized the positive market conditions for gold producers, signaling prosperous days ahead. Despite facing challenges in the first half of the year due to weather events impacting production, Gold Fields projects a nearly 13% increase in gold production for 2025. The ramp-up of key projects like Solaris Norte in Chile and operational recoveries are expected to drive growth and cash flow, positioning the company favorably in the market. Fraser acknowledged cost management as crucial, noting an improvement in costs for 2025 after a temporary increase in 2024. The company's capital allocation strategy prioritizes maintaining a strong balance sheet, investing in safe production, and returning dividends to shareholders. While considering share buybacks as an option, Gold Fields aims to balance rewarding shareholders in the short term and investing for future sustainability. The CEO emphasized the company's active exploration efforts and partnerships with junior producers to enhance greenfields exploration potential and extend mine life. Looking ahead, Fraser shared insights on the gold price trajectory, with industry analysts predicting prices surpassing USD$3,000 in the medium term. While maintaining a reserve price of USD$1,500, Gold Fields remains optimistic about elevated gold prices and the opportunity to deliver robust returns to shareholders. The CEO expressed confidence in the company's strategic positioning in a bullish gold market. As the conversation concluded, Fraser hinted at the possibility of a prolonged bullish trend in gold prices, suggesting continued success for Gold Fields in the coming years. With the current market dynamics and the company's strategic initiatives, Gold Fields is poised for sustained growth and value creation for its stakeholders.