Gold Fields (GFI) is a gold mining company that operates internationally, with only one mine in South Africa—South Deep. Acquired by Gold Fields in 2006, South Deep has been challenging to turn profitable, requiring a total investment of R32 billion (R22 billion purchase price and R10 billion development costs) over the past 14 years. Despite these difficulties, South Deep holds one of the largest unmined gold resources globally, and the company is determined to make it a success.
Gold Fields collaborates with an independent power producer (IPP) to establish a 50MW energy project in South Africa. Over the last two years, the company has invested $502 million to ensure that its Damang and Gruyere operations maintain an annual production level of 2 million ounces for the next decade. Recent cost-saving measures have reduced South Deep's costs by R800 million and capital expenditure by R400 million.
Gold Fields is also focused on developing the Salares Norte gold mine in Chile and intends to list on the Toronto Stock Exchange while adopting a policy of paying out 30-45% of profits as dividends. The extensive investment in South Deep is starting to yield results, with production anticipated to increase by 25% over the next four years.
In its financial results for the year ending December 31, 2023, the company reported headline earnings per share (HEPS) of 94 cents (USD) compared to 119 cents in the previous year. The rand/US dollar exchange rate weakened by 13%, and debt increased by $320 million to $1.024 billion. For the first quarter of 2024, Gold Fields reported attributable production of 464,000 ounces at an all-in sustaining cost of $1,738 per ounce. Production was affected by adverse weather conditions and operational challenges at the Gruyere, St Ives, South Deep, and Cerro Corona mines, resulting in a YoY drop of 18% in production.
Gold Fields remains a volatile commodity investment due to fluctuations in the global gold market, but it has maintained an upward trend over the past five years. It remains a valuable yet unpredictable commodity play.
Gold Fields collaborates with an independent power producer (IPP) to establish a 50MW energy project in South Africa. Over the last two years, the company has invested $502 million to ensure that its Damang and Gruyere operations maintain an annual production level of 2 million ounces for the next decade. Recent cost-saving measures have reduced South Deep's costs by R800 million and capital expenditure by R400 million.
Gold Fields is also focused on developing the Salares Norte gold mine in Chile and intends to list on the Toronto Stock Exchange while adopting a policy of paying out 30-45% of profits as dividends. The extensive investment in South Deep is starting to yield results, with production anticipated to increase by 25% over the next four years.
In its financial results for the year ending December 31, 2023, the company reported headline earnings per share (HEPS) of 94 cents (USD) compared to 119 cents in the previous year. The rand/US dollar exchange rate weakened by 13%, and debt increased by $320 million to $1.024 billion. For the first quarter of 2024, Gold Fields reported attributable production of 464,000 ounces at an all-in sustaining cost of $1,738 per ounce. Production was affected by adverse weather conditions and operational challenges at the Gruyere, St Ives, South Deep, and Cerro Corona mines, resulting in a YoY drop of 18% in production.
Gold Fields remains a volatile commodity investment due to fluctuations in the global gold market, but it has maintained an upward trend over the past five years. It remains a valuable yet unpredictable commodity play.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.