Gold Fields Limited has reaffirmed its commitment to Ghana and its host communities after announcing that it paid $460 million in taxes and royalties to the government in the first half of 2025 alone—more than double the amount paid during the same period in 2024.
Executive Vice-President for Strategy, Planning and Corporate Development, Chris Gratias, who disclosed the figure during a virtual media engagement on the company’s half-year results, said the numbers showed that the benefits of higher gold prices were being shared widely and not confined to shareholders.
“Everyone is benefiting from this gold price environment. In Ghana, we have seen a dramatic increase in taxes and royalties, alongside our procurement commitments to local communities. This is real value being shared,” Gratias emphasized.
Strengthening local procurement, community benefits
Gold Fields has placed local procurement at the heart of its sustainability drive, prioritizing host communities as key suppliers and partners in its operations.
The company says this deliberate focus ensures that the economic value it creates circulates within local economies, generating jobs and stimulating business growth.
“It is really difficult to meet all the expectations of local communities,” Gratias admitted.
“But we are committed to ensuring that the value we create is broadly shared.”
The company has built strong links with suppliers in its operational areas, ensuring communities surrounding its mines are not left behind in the global boom in gold demand.
Reinvestments in operations
While emphasizing benefits to Ghana and communities, Gratias said Gold Fields was also using the current high gold prices to strengthen its asset base.
He revealed that substantial reinvestments are being made into the Tarkwa mine, with a lease renewal application supported by plans to extend the mine’s life.
“This is the best time to reinvest because it allows Gold Fields to reshape its operations, make them more productive, reduce costs, and ultimately ensure resilience when gold prices eventually pull back,” he said.
He explained that the strategy of reinvesting in current operations was not limited to Tarkwa, but extended across the group’s global portfolio, with each mine assessed for opportunities to extend life and improve efficiency.
Balancing growth with shareholder returns
Gratias acknowledged, however, that reinvestments and expansions needed to be balanced with shareholder expectations for returns.
“When we think about capital allocation, it’s a fine balance between investing in our business, adding reserves through exploration and acquisitions, and returning money to shareholders,” he noted.
This balancing act, he explained, included strengthening systems, simplifying processes, and embedding efficiency throughout the organization.
CFO sets out capital allocation priorities
Chief Financial Officer, Alex Dall, provided further clarity on the company’s approach to managing capital.
He outlined three guiding principles: maintaining an investment-grade credit rating to give the company financial flexibility; ensuring capital is directed toward safe, reliable, and cost-effective operations; and a commitment to pay base dividends of between 30% and 45% of normalized earnings.
“This gold price environment generates significant cash flows, and that cash must compete for allocation. That’s where the tension comes in—we must balance between debt repayment, reinvestment, and shareholder returns,” Dall explained.
He added that discretionary investments also play a key role, highlighting ESG-related projects such as a microgrid in Australia. At the same time, acquisitions like Cisco and Gold Red, expected to close later in the year, were being financed on the balance sheet, requiring careful cash flow management to avoid over-leverage.
Record earnings and dividend boost
The company’s strong focus on operational efficiency and reinvestments was reflected in its half-year results.
Gold Fields reported headline earnings of $1.027 billion for the six months to June 30, 2025—more than triple the $320.7 million recorded in the same period last year.
This represented a staggering 220% year-on-year increase.
This surge in profitability enabled Gold Fields to raise its interim dividend by 133%, from 300 cents per share in 2024 to 700 cents (R7.00) this year.
The dividend boost, according to management, underlined the company’s confidence in its balance sheet and cash flow strength.
Record bullion prices drive performance
The performance was driven largely by record bullion prices, with Gold Fields realizing an average gold price of $3,281 per ounce in the first half of 2025, up 40% from the previous year.
Investor appetite for gold has soared amid global economic uncertainty and weakening confidence in the U.S. dollar, giving producers like Gold Fields strong tailwinds.
Adjusted free cash flow hit $952 million in the period, compared to a $58 million outflow in the first half of 2024—a dramatic turnaround that allowed the company to accelerate reinvestments, pay down debt, and strengthen shareholder returns.
Strong production and cost control
Gold Fields also recorded robust operational performance, with attributable production rising 24% year-on-year to 1.136 million ounces.
Its newly developed Salares Norte mine in Chile delivered 123,600 gold-equivalent ounces in the first half, with second-quarter production up 46% from the prior quarter.
The mine is expected to achieve commercial production in the third quarter of 2025, producing between 325,000 and 375,000 ounces this year, before reaching steady-state output of 550,000–580,000 ounces by 2026.
All-in sustaining costs fell 4% to $1,682 per ounce, with sustaining capital expenditure forecast between $940 million and $970 million for the full year—evidence of Gold Fields’ commitment to managing costs while pursuing expansion.
A company preparing for the next century
For Gratias, the strategy reflects a company that has been in business for 138 years and intends to remain relevant for the next hundred.
“High gold prices have given us a unique opportunity to reshape the business, build resilience, and invest in the future. The goal is to stay profitable, remain relevant, and ensure value is shared with governments, communities, and shareholders alike,” he said.
Gold Fields reaffirmed its full-year production guidance of between 2.25 million and 2.45 million ounces, with all-in sustaining costs projected at $1,500 to $1,650 per ounce.
With record profits, higher dividends, and significant reinvestments, the Johannesburg-listed miner appears determined to secure its place as a global leader in the gold sector for generations to come.
