Gold Fields Limited has confirmed it is financing feasibility studies into the future of the Damang Mine as part of preparations for handing over the asset to the Government of Ghana in April 2026.
The studies, scheduled for completion in December this year, are expected to determine whether a life extension of the mine is viable and what level of capital investment may be required to unlock its remaining value.
The Damang lease was initially due to expire in April 2025, but both parties agreed to extend it by a year to ensure a smooth transition.
Speaking during a virtual media engagement on the company’s half-year results, Gold Fields Executive Vice-President for Strategy, Planning and Corporate Development, Chris Gratias, said the government was keen on ensuring the mine transitioned safely and sustainably into Ghanaian ownership.
Ghana’s call on future ownership
Gratias noted that while Gold Fields will complete the feasibility study and continue to operate the mine responsibly until 2026, the question of who ultimately takes over Damang rests with the Government of Ghana.
“One thing that is unknown at this point is who and what the ownership structure of Damang is post-April 2026. That decision lies entirely with the Government of Ghana,” he said.
He emphasised that Gold Fields will not pursue a trade sale of the mine but will hand it back at the end of the lease extension.
The company, he added, did not see significant long-term value in Damang given its relatively short mine life, unless new investment is committed to extend operations.
Finding the right Ghanaian owner
According to Gratias, Gold Fields has always intended to find a pathway for Damang to transition to an owner who can maximise its long-term potential—ideally a Ghanaian entity.
“The Damang mine doesn’t really fit our long-term aspiration for high-quality cornerstone assets in the portfolio. Damang, however, is very important for the local community, and the right owner can unlock its value,” he explained.
Repairing strains in the relationship
Gratias also addressed earlier exchanges between Gold Fields and the government which drew media attention, acknowledging that some discussions could have been managed more discreetly.
“Despite the spotlight, we feel very comfortable where we’ve landed. Gold Fields’ reputation in Ghana remains strong, and there is no animosity. The point of difference over Damang has been resolved, and we are aligned with the government on the way forward,” he said.
Gold Fields shoulders the feasibility costs
As part of the transition plan, Gold Fields is covering the full cost of the feasibility study, which will not only assess Damang’s life extension potential but also ensure the mine is in the best possible condition for the future owner.
“This is about setting the asset up for the future, even if that future is not with Gold Fields,” Gratias added.
Global earnings surge on record gold prices
Beyond Ghana, Gold Fields reported a stellar financial performance for the first half of 2025.
Headline earnings more than tripled year-on-year to $1.027 billion, up from $320.7 million in the same period of 2024—a 220% jump.
The surge was driven by record gold prices and strong operational performance across its global portfolio.
The earnings uplift allowed the Johannesburg-listed company 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 first half of 2025.
Record bullion prices drive gains
Gold Fields realised an average gold price of $3,281 per ounce in the first half of the year, representing a 40% increase compared to the prior year.
Investor demand for gold as a safe-haven asset, amid global economic uncertainty and declining confidence in the U.S. dollar, underpinned the price rally.
This price momentum, combined with a 24% increase in attributable production to 1.136 million ounces, generated adjusted free cash flow of $952 million, a dramatic turnaround from a $58 million outflow in the first half of 2024.
Salares Norte boosts output
Much of the production growth was supported by the company’s new Salares Norte mine in Chile, which produced 123,600 gold-equivalent ounces in the first half.
The mine’s output in the second quarter alone surged 46% from the previous quarter, and it is on track to reach full commercial production by the third quarter of 2025.
Annual output from Salares Norte is projected at 325,000–375,000 ounces this year, with steady-state production expected at 550,000–580,000 ounces by 2026.
Strengthened dividend policy
Gold Fields reaffirmed its policy of distributing 30% to 45% of normalised earnings, with the interim dividend underscoring its strengthened cash position.
At current exchange rates, net income stands at approximately R18 billion.
The group maintained full-year production guidance of 2.25–2.45 million ounces, with all-in sustaining costs projected at $1,500–$1,650 per ounce.
