Miner Gold Fields achieved a strong performance for the six months ended June 30, with sales volumes having increased by 18% year-on-year to 1.27-million ounces of gold, supported by a higher average realised gold price of $4 678/oz, which resulted in adjusted free cash flow more than doubling to $2.23-billion from $925-million in the first half of 2025.

“This gave us the platform to strengthen our balance sheet further, continue investing in the long-term growth and resilience of our business, while delivering upper-quartile shareholder returns,” CEO Mike Fraser says.

Gold Fields announced profit attributable to owners of the parent of $1.86-billion, compared with profit of $1.03-million in the prior comparable period.

Operational momentum from last year continued through to the first half of this financial year, with group attributable production having increased by 12% year-on-year to 1.27-million ounces, enabling Gold Fields to remain on track to deliver on the upper-end of its full-year guidance of 2.4-million to 2.6-million ounces of gold.

Salares Norte, in Chile, was a key contributor as the mine reached steady-state production and delivered a 173% increase in gold-equivalent production to 337 000 oz.

Granny Smith, in Western Australia, also delivered a strong first half, with production up 10% on record haulage fleet availability and autonomous truck performance.

South Deep, in South Africa, continued to demonstrate incremental improvement in stope turnover and mining productivity. The operation delivered a solid performance in the period under review, with attributable gold production of 151 000 oz – down 1% year-on-year.

Performance improved during the second quarter and in line with the plan, supported by stronger destress mining, improved development rates, stable grades, improved long-hole stoping and enhancements to water management, ventilation and backfill infrastructure.

A five-year wage agreement was signed post period-end, which is expected to provide a solid base for stability.

During a media call, Fraser said South Deep continued to show strong productivity and performance.

He highlighted that, for the first time in several years, Gold Fields started exploration drilling at South Deep from surface and, as recently as two weeks ago, the group intercepted reef at depth as part of the drilling programme.

“South Deep is a really valuable long-term asset in this portfolio and the combination of improved operating performance and studies around what we can do to set that up for future growth bodes very well not just for Gold Fields shareholders, but for everyone in South Africa that benefits from the performance out of that asset,” Fraser acclaimed.

He lauded it as “exciting times” for South Deep, with the group anticipating at least 20% uplift over the next five years at the asset, and then, studying opportunities for a further step change into the 2030s.

Meanwhile, Gruyere and Agnew, in Western Australia, and Tarkwa, in Ghana, were said to show encouraging signs of improvement in the second quarter as recovery plans gained traction.

Gold Fields continued to advance its three-pillar strategy, including progress towards a final investment decision at the Windfall project, in Canada, where a key milestone was reached with the signing of an impact benefit agreement with the Cree First Nation.

Gold Fields achieved an 81% year-on-year increase in headline earnings of $1.86-billion, while the total allocated to additional shareholder returns increased to a cumulative $1.25-billion, from $750-million in February.

Gold Fields has completed $300-million in share buybacks to date.

An interim dividend of R16.25 a share has been declared, a 132% year-on-year increase.

TARKWA

An important feature of the media call was the still outstanding renewal of the Tarkwa mining leases in Ghana, which is due to expire in April next year.

Fraser said that, owing to the uncertainty around the timing, outcome and terms of any negotiated agreement to renew the Tarkwa leases, the group was considering all options available to it regarding the renewal and its development agreement (DA), including pursuing its legal rights under the leases, DA and at law, if required.

However, he stressed that while the legal route was being considered, the group would prefer a positive outcome from discussions, rather than resorting to the former, given that it has operated in the country for over 30 years.

Gold Fields submitted an application for the renewal in November last year, and continues to engage with the government to progress it. Moreover, in July, the group submitted a commercial proposal to the government to support the renewal of the leases and long-term sustainability of Tarkwa.

It is still awaiting a formal response to its proposal, and currently has no confirmed timeframe for this response or for the conclusion of the group’s negotiations regarding the lease renewals.

An adverse outcome of the renewal process is expected to have a material and adverse impact on the group.

“The key takeaway from our point of view is that a strong performance from Gold Fields’ operating assets, helped by stronger gold prices, has delivered really good financial results. In the next six months, key catalysts for us would be progressing the Windfall project and hopefully finding a resolution on the lease extension in Tarkwa,” Fraser concluded.