Gold Fields Ltd

Latest Results (18.12.2024):

Production Increase

Gold Fields Ltd reported a 12% increase in gold-equivalent production for Q3 2024, reaching 510koz compared to 454koz in Q2 2024. This improvement was driven by enhanced performance across several operations, including Gruyere, Granny Smith, St Ives, South Deep, Tarkwa, and Cerro Corona. The company anticipates further production growth in Q4 2024, supported by continued operational improvements and contributions from Salares Norte.

Cost Reduction

In Q3 2024, Gold Fields Ltd achieved a 5% reduction in all-in costs (AIC), bringing them down to US$1,909/oz from US$2,008/oz in Q2 2024. This decrease was primarily due to higher gold sales during the quarter. However, the AIC was 18% higher year-over-year, attributed to lower gold sales compared to Q3 2023 and increased capital expenditure.

All-In Sustaining Costs

The all-in sustaining costs (AISC) for Gold Fields Ltd in Q3 2024 were US$1,694/oz, marking a 3% decrease from US$1,751/oz in Q2 2024. This reduction was a result of higher gold production. Despite the quarterly improvement, the AISC was 23% higher year-over-year, reflecting the challenges faced in the previous year.

Net Debt Position

Gold Fields Ltd successfully reduced its net debt by US$30 million, bringing it down to US$1,123 million at the end of September 2024. This reduction was achieved through strong cash generation, partially offset by the payment of an interim dividend of US$152 million. The company's net debt to EBITDA ratio improved to 0.47x from 0.53x in the previous quarter.

Osisko Acquisition

Following the end of Q3 2024, Gold Fields Ltd completed the acquisition of Osisko Mining Inc for US$1.39 billion (C$1.93 billion), net of cash received. The acquisition was finalized on 25 October 2024 and was funded through cash on hand, undrawn debt facilities, and liquidity facilities totaling US$750 million executed in October 2024.