Gold Fields (GFI) H1 2024 earnings summary

Executive summary

• Attributable gold equivalent production fell 20% year-over-year to 918koz in H1 2024 due to operational challenges, severe weather, and delays at Salares Norte and South Deep, prompting a renewed focus on safety and operational improvements.

• Two fatalities in H1 2024 led to a comprehensive, multi-year safety improvement roadmap and an independent safety review.

• Portfolio optimisation included the acquisition of Osisko Mining (Windfall project) and the sale of Asanko and Rusoro stakes.

• Interim dividend of 300 SA cents/share (R3/share) declared, representing a 40% payout of normalised earnings.

• Several mines, including Granny Smith, Agnew, Damang, and Tarkwa, performed in line with plans, while others faced setbacks and recovery plans are underway.

Financial highlights

• Revenue decreased 6% to US$2,124m due to 20% lower gold-equivalent ounces sold, partially offset by a 15% higher gold price received.

• All-in sustaining cost (AISC) rose 44% to $1,745/oz and all-in cost (AIC) up 47% to $2,060/oz, mainly from lower volumes and higher capital spend.

• Net debt increased to $1,153m (net debt/EBITDA 0.53x), with a $500m bond repaid in May 2024.

• Adjusted free cash outflow of $58m, compared to an inflow of $140m in H1 2023, due to project spending.

• Capital expenditure rose 18% to $601m, with higher spend at Gruyere, St Ives, South Deep, and Salares Norte.

Outlook and guidance

• 2024 attributable gold production guidance reduced to 2.05–2.15 million ounces, mainly due to delays at Salares Norte and South Deep.

• H2 2024 expected to deliver stronger performance, with production expected to exceed 1.2 million ounces and cost improvements anticipated.

• Full-year 2024 AISC now guided at $1,580–$1,670/oz and AIC at $1,820–$1,910/oz.

• Salares Norte restart targeted for September 30, with ramp-up extending into Q2 2025 and commercial production expected in H1 2025.

• South Deep 2024 production guidance cut to 250koz–264koz, with AISC/AIC revised to $1,890–$1,980/oz.