Gold Fields share price surges 4.5% on predicted earnings increase of at least 110%

Gold Fields' share price shot up 4.5% on Friday after it predicted that a rising gold price and higher volumes sold would result in headline earnings per share (HEPS) increasing by between 110% and 123% in the 12 months to December 31.

The share price closed 4.5% higher on Friday on the JSE at R865.80, continuing a rally that has seen the price rise 141% over 12 months, a period where the gold price has also hit new high prices as investors bought gold for its perceived safe haven status in the midst of global geopolitical uncertainty.

The South Africa-based gold mining group with mines also in Ghana, Australia, Peru, and Chile said in a trading statement Friday that HEPS were expected to be in the range of $2.79 to $2.97 per share, compared with the $1.33 per share reported at the end of the 2024 financial year.

The directors said the strong earnings performance reflected a combination of materially higher gold prices, increased volumes of gold sold and the full consolidation of Gruyere Gold Mine in Australia.

These positive factors were only partially offset by higher cost of sales in line with general mining inflation, increased royalties due to the higher gold price, and higher volumes mined.

The group's basic earnings per share (EPS) were expected to be in the range of $3.87 to $4.11 per share, which would be 178% to 196% higher than the EPS reported for the 2024 financial year of $1.39 per share.

Normalised earnings a share were expected to be between $2.91 to $3.09 a share, which was 112% to 126% higher than in 2024. The full financial results are expected to be released on February 19.

Normalised earnings are defined as profit excluding gains and losses on foreign exchange, financial instruments and non-recurring items after taxation and non-controlling interest effect.

During the fourth quarter, group attributable gold equivalent production was expected to be 681koz (Q3 2025: 621koz), with all-in costs (AIC) of $1 969/oz ($1 835/oz). All-in sustaining cost (AISC) was expected to be $1 673/oz ($1 557/oz).

Group attributable production in the fourth quarter included 100% of Gruyere's production compared to 50% of Gruyere's production in the third quarter.

Salares Norte achieved steady-state levels of production, after reaching commercial production in the third quarter. Salares Norte produced 161koz-eq in the fourth quarter, a 43% increase from the 112koz-eq produced in the third quarter.

Group attributable gold equivalent production for 2025 of 2 438koz was expected to be 18% higher than the corresponding period in 2024, and at the upper-end of the guidance range. AIC for 2025 was expected to be 3% higher at $1 927/oz ($1 873/oz) and AISC was expected to be 1% higher at $1 645/oz ($1 629/oz), with both AIC and AISC within guidance.

AIC benefited from higher volumes of gold sold offset by an increase in cost of sales before amortisation and depreciation (mainly at Salares Norte), and sustaining capital expenditure (mainly at Gruyere, Granny Smith, Tarkwa and Salares Norte).

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