Gold Fields Boosts H1 2025 Earnings, Eyes Reinvestment in Tarkwa as Damang Transition Looms
Gold Fields Limited has delivered a strong performance in the first half of 2025 on the back of higher gold prices and improved operations, with Chief Executive Officer Mike Fraser underscoring the miner’s focus on reinvestment and long-term resilience.
Speaking at the half-year 2025 Financial Results presentation on Friday, August 22, Mr Fraser said the current price environment presented a “perfect opportunity” for the Johannesburg-based firm to future-proof its 138-year-old business.
“With these higher gold prices, it provides a perfect opportunity for us to future-proof the business… you’ve got to continue to invest in the business in a way that is value accretive,” he stated.
He further highlighted planned reinvestment in existing operations, particularly in extending the life of the Tarkwa mine in Ghana, as well as new exploration and selective M&A.
Financial performance
Gold Fields reported a 24% year-on-year increase in attributable production to 1,136koz in H1 2025, keeping it on track to meet full-year guidance. Normalised earnings surged 181% to US$998m (US$1.12 per share) compared to US$355m (US$0.40 per share) a year earlier, driven by higher output and stronger realised gold prices.
The group generated adjusted free cash flow of US$952m, reversing an outflow of US$58m in H1 2024, while adjusted free cash flow from operations rose to US$1.14bn from US$321m. The balance sheet strengthened with net debt falling by US$599m since December 2024, bringing net debt-to-EBITDA to 0.37x.
In line with its dividend policy, Gold Fields declared an interim dividend of 700 South African cents per share, up 133% from last year, representing a payout of 34% of normalised earnings.
Balancing growth and shareholder returns
Mr Fraser noted that the company’s capital allocation strategy sought to balance reinvestment in operations, expansion through exploration and acquisitions, and delivering returns to shareholders.
“This is a very important time for us to be using some of these opportunities to reinvest in our business, not just in our assets, but things like our systems, simplifying our organisation and the way we run the business in totality,” he said.
Ghana operations and Damang transition
Mr Fraser also addressed ongoing talks with the Government of Ghana regarding the Damang mine, whose lease expired in April 2025. He disclosed that Gold Fields had agreed to a 12-month lease extension to April 2026 to allow for a safe transition of the mine into Ghanaian ownership.
“As part of those engagements with the Government of Ghana, we agreed to a 12-month lease extension where we would continue to operate and own the Damang mine. A transition committee has been set up, and we are working with them to ensure the mine can be safely and reliably transitioned in April 2026,” he said.
A feasibility study on a potential life extension of the mine is expected to be completed in December 2025, while the ownership structure of Damang post-transition remains to be determined by the government.
