Strong Production Growth
Attributable production rose 18% year-on-year to 2.44 million ounces, at the upper end of guidance (2.25–2.45 Moz). Salares Norte ramp-up was a major contributor to the increase.
Gold Fields
· GFI
February 19th, 2026
Summary
- Earnings Call Date:
- 2026-02-19
- Change Since:
- -38.26%
- Next Earnings Date:
- 2026-08-21
Earnings Call Sentiment
PositiveThe call conveys a predominantly positive performance: material production growth, strong cash generation, substantial reserve replacement and a marked increase in shareholder returns underpin a healthy operational and financial momentum. Offsetting risks include modest cost inflation, elevated capital requirements (especially in Australia), specific operational declines (Damang, Tarkwa), safety incidents, high contractor turnover at Gruyere and potential Ghana royalty/lease uncertainty that could raise future unit costs. Management has clear mitigation plans (portfolio optimization, capital allocation framework, community/permitting progress and contractor remediation), and balance-sheet metrics remain strong, supporting continued returns and growth investment.
Company Guidance
Management reiterated 2026 guidance in line with the Capital Markets Day: group production of 2.4–2.6 million ounces, total capital expenditure of $1.9–$2.1 billion, all‑in sustaining costs of $1,800–$2,000/oz and all‑in costs of $2,075–$2,300/oz. Salares Norte guidance remains 525,000–550,000 oz gold‑equivalent with AISC of $450–$600/oz. Windfall milestones target FID mid‑2026, main environmental approval and secondary permits by end‑H1/June 2026, site clearance and core infrastructure in 2027, plant construction in H1 2027, commissioning late‑2028 and first gold in 2029. Management noted portfolio metrics that underpin the plan, including ~4.0 million oz of reserve additions (a 9% increase) versus 2.5 million oz of depletion, and a capital‑allocation framework that directs roughly 35% of free cash flow (before discretionary growth) to shareholder returns.
Record Cash Generation and Earnings
Adjusted free cash flow was just under $3.0 billion (up ~391% year-on-year). Headline earnings rose 117% to $2.6 billion. Operations generated $5.5 billion before tax; cash flows from operations before investing were $4.5 billion.
Significant Shareholder Returns
Delivered record shareholder returns of ~ZAR 31.9 per share (≈220% increase vs 2024). Declared a base dividend of ZAR 25.50/share, a special dividend of ZAR 4.50/share, and a $100 million share buyback; additional returns of $353 million announced. Top-up program increased from $500m to $750m over 2 years.
Balance Sheet Strength
Net debt of $1.4 billion (including ~$500 million leases) and a net debt-to-EBITDA ratio of 0.26x after completing Osisko and Gold Road transactions.
Portfolio Progress — Key Asset Deliveries
Salares Norte reached commercial production in Q3 with steady-state in Q4 and better-than-expected recoveries. Gold Road acquisition consolidated 100% of Gruyere. Windfall advanced toward FID with permitting, community engagement and execution plan updates underway.
Reserve Replacement and Exploration Success
Added ~4.0 million ounces to reserves, a 9% increase year-on-year (offsetting ~2.5 Moz depletion). Brownfields spend USD 129m and greenfields USD 101m, including investment in Founders Metals (Antino exposure).
Operational Improvements at Key Mines
Tonnes mined at Gruyere up 37% year-on-year with record mill throughput (9.6 Mt). South Deep production up ~16% due to improved stope turnover; St Ives production up 12% with better mill yields.
ESG and Stewardship Achievements
Zero serious environmental incidents for seven consecutive years. Delivered 15% absolute emissions reduction (vs 2026 baseline) and 74% water recycling (target 73%). Gender diversity: 27% female employees and 28% female in leadership.
Operator
Good afternoon, ladies and gentlemen, and welcome to the Gold Fields' Q4 Results Presentation. [Operator Instructions] Please note that this event is being recorded. I will now hand the conference over to Chief Executive Officer, Mike Fraser. Please go ahead, sir.
Michael Fraser
Thank you very much. Good afternoon, good morning and good evening for those that have joined the presentation of our financial year 2025 results. And on behalf of the team at Gold Fields, I'm really pleased to deliver a very strong set of results for the group. Going into the presentation, I have with me our Chief Financial Officer, Alex Dall. Also joining in the room is Jongisa Magagula, our Executive Vice President of Corporate Affairs; as well as Chris Gratias, our EVP of Strategy and Business Development. As going into the presentation, we will run through a short presentation that will be shared between myself and Alex, and then we will spend some time at the back end addressing questions. I would like to first draw your attention to the disclaimer on the forward-looking statements. Just going into some of the highlights.
I think, first and foremost, as I said, we are very proud to deliver a strong operating and financial performance for 2025. I think firstly and most pleasingly, we delivered a safe delivery during the year. And it's quite clear that our safety improvement plan is starting to deliver positive outcomes for the group. In terms of production, attributable production was up 18% year-on-year to 2.44 million ounces, and that was at the upper end of our guidance of 2.25 million to 2.45 million ounc...
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