South African mining group Gold Fields Limited has reported a remarkable surge in profitability for the first half of 2025, with earnings more than tripling year-on-year, buoyed by record gold prices and operational improvements across its global portfolio.
The group’s headline earnings rose sharply to $1.027 billion in the six months to June 30, compared with $320.7 million during the same period last year—representing a 220% jump.
The robust performance enabled the Johannesburg-listed miner to raise its interim dividend by 133%, from 300 cents per share in the first half of 2024 to 700 cents (R7.00) in the current reporting period.
Record bullion prices drive gains
Gold Fields realised an average gold price of $3,281 per ounce in the first half of 2025, a 40% increase from a year ago, as global economic uncertainty and weakening confidence in the U.S. dollar fuelled investor appetite for the safe-haven metal.
This price rally, combined with stronger production, drove adjusted free cash flow to $952 million, a dramatic turnaround from a $58 million outflow in the first half of 2024.
Production surge boosts output
Group attributable production rose 24% year-on-year to 1.136 million ounces, supported by contributions from operations in South Africa, Chile, Peru, and Australia.
Notably, the company’s new Salares Norte mine in Chile produced 123,600 gold-equivalent ounces in the first half, with the second quarter alone delivering 73,000 ounces—a 46% increase from the prior quarter.
The mine is expected to achieve commercial production in the third quarter 2of 025, with annual output projected at 325,000–375,000 ounces this year and a full steady-state production of 550,000–580,000 ounces by 2026.
South Deep in South Africa, Cerro Corona in Peru, and Gruyere in Australia also recorded significant improvements, with output recovering from earlier operational challenges.
“Momentum from the second half of 2024 continued into this year, allowing us to deliver a strong financial and operational performance,” said Gold Fields CEO Mike Fraser, in a statement accompanying the interim results.
He noted that improved winterisation measures had helped overcome last year’s weather-related setbacks at Salares Norte.
“Gold Fields’ strategy of maintaining low-cost, geographically diversified operations positions us to thrive in this environment,” Fraser said.
Costs held in check despite inflation
Gold Fields has also succeeded in lowering costs at a time when the mining sector globally is grappling with inflationary pressures. All-in sustaining costs (AISC) for the first half of 2025 fell 4% to $1,682 per ounce, down from the prior year’s levels.
This reduction in costs while scaling up production highlights the company’s operational discipline and efficient capital management.
Sustaining capital expenditure for 2025 is expected to remain within $940 million to $970 million, enabling the group to balance expansion with cost control.
Dividend policy strengthened
In line with its policy of distributing 30% to 45% of normalised earnings, Gold Fields declared an interim dividend of 700 cents per share, compared with 300 cents in the first half of 2024.
At current exchange rates, net income stands at approximately R18 billion, underscoring the company’s strengthened cash position.
Investors have responded positively, with Gold Fields’ shares recording a steady climb amid expectations of sustained profitability as gold prices remain elevated.
Gold market dynamics favourable
The group’s stellar results come against a backdrop of structural shifts in global financial markets.
Central banks, particularly in emerging economies, are ramping up gold purchases as a hedge against currency devaluation, while underinvestment in exploration has created supply constraints.
The weakening of the U.S. dollar, alongside fiscal strains in advanced economies, has further cemented gold’s position as a store of value, pushing demand to record highs.
Gold Fields reaffirmed its full-year production guidance of 2.25 million to 2.45 million ounces, with AISC projected between $1,500 and $1,650 per ounce.
The company expects continued momentum into the second half of the year as Salares Norte ramps up and operational efficiencies at its other mines consolidate.
For investors, the company represents a compelling case of operational excellence riding the tailwinds of a historic bull market in gold.
