Half Year 2026 Gold Fields Limited Earnings Call Transcript
Key Points
- Gold Fields Ltd (GFI) reported a 12% increase in attributable production to 1.267 million ounces, driven by strong performance at Salares Norte and Granny Smith.
- Adjusted free cash flow more than doubled to $2.225 billion, resulting in a free cash flow yield of 11%.
- The company achieved a significant reduction in net debt-to-EBITDA to 0.06 times, and excluding lease liabilities, it is in a net cash position.
- Gold Fields Ltd (GFI) returned $1.4 billion to shareholders, including a 132% increase in the interim dividend and a $500 million top-up to its share buyback program.
- Salares Norte delivered a standout performance with a 173% increase in production and an all-in sustaining cost of $269 per ounce, generating nearly $1.2 billion in free cash flow.
- The company maintained a strong safety record with no fatalities or serious injuries, reflecting the success of its safety improvement program.
- All-in sustaining costs increased 13% to $1,893 per ounce, driven by higher royalties, inflation, and stronger producing currencies.
- The Tarkwa lease renewal in Ghana remains uncertain, with the outcome and terms of the renewal still pending, which has been a drag on the share price.
- The Windfall project faces potential delays as the environmental impact assessment (EIA) approval is late, which could push the project timeline to the back end of 2029 or later.
- Capital costs for Windfall are expected to be at the higher end of the range due to unplanned scope items, such as a nitrate treatment plant and changes to labor costs.
- Production at Tarkwa was lower year-on-year due to reduced mill feed grades and adverse weather conditions, impacting overall performance.
- The company experienced a seismic event at Agnew, which impacted production, though recovery is expected in the second half.
Good day, everybody, and thank you for joining us for the presentation of Gold Fields results for the six months to June 30, 2026. My name is Mike Fraser, and joined today in our Johannesburg office is Alex Dall, our Chief Financial Officer; and Jongisa Magagula, EVP of External Affairs.
So today, our message is very simple. Our operations delivered a solid first half performance. We converted this in conjunction with a higher and supportive gold market into very strong cash flows. And that, in turn, it allowed us to deliver higher returns to our shareholders.
I wanted to just bring your attention to the forward-looking statements, which include some non-IFRS measures, and I ask you to take note of the slide on page 2.
So in terms of the agenda for today, I will cover the highlights and the operational performance. Alex will cover the financials and capital allocation, and we'll also touch on some of the transformation initiatives underway to create a more reliable and agile organization. And
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