• Total Production: 2.07 million attributable ounces.
• All-In Sustaining Cost: $1,629 per ounce.
• H2 Production Increase: 26% higher half-on-half.
• All-In Sustaining Cost Reduction: 12% lower half-on-half.
• Normalized Earnings: $1.2 billion, up 36% year-on-year.
• Free Cash Flow: $605 million, up 65% year-on-year.
• Net Debt to EBITDA: 0.73x.
• Final Dividend: ZAR7 per share, representing 80% of free cash flow.
• Average Realized Gold Price: $2,418 per ounce in 2024.
• Capital Expenditure: Increased due to investments in Windfall and St. Ives projects.
• Net Debt: Increased from $1 billion to $2.1 billion.
• Cash on Hand: $860 million at year-end.
• 2025 Production Guidance: Between 2.25 million and 2.45 million ounces.
• 2025 All-In Sustaining Cost Guidance: Between $1,500 and $1,650.

• Warning! GuruFocus has detected 7 Warning Sign with MFC.

Release Date: February 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Gold Fields Ltd (NYSE:GFI) reported a 36% year-on-year increase in normalized earnings, reaching $1.2 billion, supported by higher gold prices.
• The company achieved a 65% year-on-year increase in free cash flow, totaling $605 million.
• Gold Fields Ltd (NYSE:GFI) successfully ramped up the Salares Norte project, delivering a strong fourth quarter in line with revised guidance.
• The company returned a record dividend to shareholders, with a final dividend of ZAR7 per share, representing approximately 80% of free cash flow generated in 2024.
• Gold Fields Ltd (NYSE:GFI) is on track with its ESG commitments, making progress in areas such as gender diversity, renewable energy, and water stewardship.

Negative Points

• Gold Fields Ltd (NYSE:GFI) faced operational challenges in the first half of 2024, including two fatalities and weather-related disruptions, leading to a guidance revision.
• The company experienced an 8% year-on-year decrease in gold equivalent ounces due to various operational challenges.
• All-in sustaining costs increased significantly from 2023 to 2024, driven by lower gold sales and higher mining inflation.
• The acquisition of Osisko Mining led to an increase in net debt to EBITDA, reaching 0.73x.
• Gold Fields Ltd (NYSE:GFI) anticipates elevated capital expenditure in 2025, particularly due to investments in the Windfall and St. Ives renewable projects.

Q & A Highlights

Q: When do you expect the Salares Norte plant to reach steady-state production? A: Michael Fraser, CEO: We expect to achieve steady-state monthly production by the fourth quarter of 2025, transitioning into full-year nameplate production in 2026.

Q: Are the recoveries at Salares Norte performing in line with expectations? A: Michael Fraser, CEO: Yes, the recoveries are actually better than originally anticipated in the design. We are very happy with the current recovery rates.

Q: What are the grade forecasts for Salares Norte in 2025, and how are you managing stockpile grades? A: Michael Fraser, CEO: The long-term grade is around 10% to 11%. We are managing stockpile grades carefully to prioritize lower-grade material during the ramp-up phase to avoid inefficiencies.

Q: Can you provide insights into the elevated spending levels at Salares Norte? A: Michael Fraser, CEO: It's early to provide detailed insights, but we plan to prepare for a final investment decision in Q1 2026. We will provide more information by the end of Q3 or early Q4 2025.

Q: What is the expected cost run rate to maintain a production level of 2 to 3 million ounces into the mid-2030s? A: Michael Fraser, CEO: It's early to provide specific guidance, but we aim to maintain an all-in sustaining cost below our reserve price of $1,500 per ounce. We plan to manage growth with discipline, balancing investment and shareholder returns.

Q: What is the mining inflation rate in Australia, and how does it affect sustaining capital? A: Alex Dall, CFO: We've seen about a 6% to 7% increase in costs due to mining inflation. Sustaining capital has increased due to reinvestment in Australian assets, which will continue for the next two years.

Q: What are the plans for the 2025 debt maturities? A: Alex Dall, CFO: We have a $750 million bridge due this year and are exploring refinancing options to extend it into longer-dated term debt, either through debt capital markets or banks.

Q: Are there plans to increase the dividend payout ratio? A: Michael Fraser, CEO: We have a broad dividend payout ratio, providing flexibility. We aim to maintain a balance between rewarding shareholders and investing in the business.

Q: Which assets are considered non-core and could potentially be disposed of? A: Michael Fraser, CEO: Cerro Corona and Damang are considered transition assets. We may look to transition these to more natural owners while considering social responsibilities.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.