Gold Fields H1 Earnings Call Highlights

Key Points

• Gold Fields delivered a strong first half: attributable production rose 12% to 1.267 million ounces, while adjusted free cash flow more than doubled to $2.225 billion, supported by an average realized gold price of $4,678 per ounce.
• Salares Norte drove operational growth with production up 173% to 337,000 ounces and nearly $1.2 billion in free cash flow. Gold Fields raised its full-year production outlook for the mine to 550,000–600,000 gold-equivalent ounces.
• Shareholder returns increased, but project risks remain: the company announced an additional $500 million for its top-up program, while delays to Windfall’s environmental approval could push the project to late 2029 or later; the renewal of Tarkwa’s leases also remains uncertain.

Gold Fields NYSE: GFI reported a stronger first half for the six months ended June 30, 2026, driven by higher production, higher sales volumes and a substantially stronger realized gold price. The company said it increased attributable production 12% year over year to 1.267 million ounces while generating adjusted free cash flow of $2.225 billion, more than double the prior-year period.

Mike Fraser said the company recorded no fatalities or serious injuries across the group during the half, which he described as evidence that Gold Fields’ safety improvement program, launched in 2024, was gaining momentum. The company said its safety efforts include critical-risk identification, control verification, planning discipline, near-miss reporting and a focus on psychological safety.

Production Growth Led by Salares Norte

Sales volumes rose 18% during the six-month period, while Gold Fields’ average realized gold price increased 51% to $4,678 per ounce. Fraser said the combination of production growth and the higher gold market supported the company’s cash generation and shareholder returns.

Salares Norte was the principal contributor to the production increase. The operation produced 337,000 ounces in the first half, up 173% from the comparable period, and generated just under $1.2 billion in free cash flow, according to Fraser. Its first-half all-in sustaining cost was $269 per ounce, supported in part by strong silver prices and byproduct credits.

Fraser said Salares Norte benefited from more favorable grade reconciliation from the pits and stronger plant recoveries than anticipated. The operation ran through winter conditions successfully, he said, reinforcing management’s confidence in its performance.

Gold Fields now expects Salares Norte to produce between 550,000 and 600,000 gold-equivalent ounces for the full year, above the prior 500,000-to-550,000-ounce outlook discussed at the company’s capital markets day. Future costs at the mine will partly depend on silver prices, Fraser said, while the company also sees opportunities to optimize productivity and costs as the asset moves into a steadier operating phase.

Other operational contributors included Gruyere, Granny Smith and South Deep. Granny Smith produced 147,000 ounces, a 10% increase, aided by higher mined grades and improved underground productivity. South Deep produced 151,000 ounces, in line with plan, as improved destress mining, development and stope turnover supported output.

Cerro Corona was in line with plan but lower year over year as it transitions to stockpile processing. Tarkwa experienced lower mill-feed grades, more waste movement and adverse weather conditions during the period, though Fraser said performance improved in the second quarter and is expected to step up in the second half. Agnew was affected by a seismic event early in 2026, with recovery expected to continue through the remainder of the year.

Cash Flow, Costs and Shareholder Returns

Chief Financial Officer Alex Dall said headline earnings per share and free cash flow more than doubled in the first half. Net debt declined to $437 million, and Dall said Gold Fields was in a net cash position excluding lease liabilities. Net debt to EBITDA ended June at 0.06 times, compared with 0.37 times a year earlier.

Cash costs increased 10%, while all-in sustaining costs rose 13% to $1,893 per ounce. Gold Fields cited higher royalties, stronger producing currencies, inflation, higher strip ratios at certain assets and the structural costs of mining at depth. The consolidation of Gruyere at 100%, compared with 50% previously, also affected the cost base.

Dall said sustaining capital amounted to $497 per ounce and reflected investment in waste stripping, underground development and infrastructure. All-in costs were $2,125 per ounce, including growth capital at Australian operations and exploration expenditure related to Windfall.

The company paid out 50% of operating cash flow during the half. Its interim base dividend was 16.25 South African rand per share, up 132% year over year. Gold Fields also completed $300 million in share buybacks between March and July, following a $253 million special dividend allocated in February.

Management announced an additional $500 million for its shareholder-return top-up program, bringing the total allocation since November 2025 to $1.25 billion. Gold Fields said it had delivered $553 million of that total through the special dividend and buybacks. Dall said the company intends to review the program every six months as cash is generated, with special dividends considered alongside the annual dividend cycle and buybacks conducted opportunistically.

Windfall Permitting Remains a Key Variable

Gold Fields continued to advance its Windfall project in Canada, which Fraser described as one of the country’s highest-grade development-stage gold projects. The company has signed an Impact Benefit Agreement and expects environmental impact assessment approval during the second half of 2026.

However, Fraser told analysts that delays in receiving the approval are beginning to affect the project’s execution schedule. Gold Fields had expected an environmental decision in June. If it does not receive approval by the end of 2026, Fraser said the project could slip to the back end of 2029 or later because the company would lose time for winter construction work.

The company has largely completed its studies but said it will provide an updated schedule and capital estimate once it receives the environmental approval. Fraser said the project’s capital estimate had already moved toward the upper end of the previously discussed $1.7 billion-to-$1.9 billion range because of additional scope items, including an approximately $50 million nitrate treatment plant, and labor-related changes. He also noted that the earlier range was presented in real 2025 terms and would need to be adjusted for inflation.

Gold Fields plans to retain the current initial scope while permitting is underway rather than seek a larger project approval. Fraser said management would evaluate potential expansion after the initial phase is approved and developed.

Guidance Maintained, Tarkwa Renewal Uncertain

Gold Fields maintained its full-year production guidance and said output is tracking toward the upper end of the range. All-in sustaining costs are expected near the midpoint of guidance, while all-in costs are expected toward the lower end due to lower anticipated capital spending in the second half. Group capital expenditure was revised slightly lower, while sustaining capital guidance was unchanged.

The company is also awaiting a response from the Ghanaian government on the renewal of Tarkwa’s mining leases, which expire in April 2027. Gold Fields submitted a technical study and lease application in November 2025, followed by a commercial proposal in July 2026. Fraser said the timing and terms of a renewal remain uncertain.

In addition to Windfall, Gold Fields highlighted growth opportunities at St. Ives, Gruyere, Granny Smith, South Deep and Tarkwa, as well as exploration programs in Canada, Australia and South America. The company said it spent nearly $180 million on brownfields and greenfields exploration in the first half.

About Gold Fields (NYSE:GFI)

Gold Fields NYSE: GFI is a Johannesburg‑based gold mining company that operates as an international producer of gold. Listed on multiple exchanges and traded in the United States via American Depositary Receipts under the ticker GFI, the company focuses on the exploration, development, extraction and processing of gold-bearing ore and the sale of refined gold products. Its operations span several regions, serving global bullion markets and supplying gold for both investment and industrial uses.

The company's core activities include mine development and underground and open‑pit mining, ore treatment and refining, and ongoing exploration to replace reserves.

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