Gold Fields declares bumper dividends after strong 2025 performance

Gold Fields declared a bumper 164% higher final dividend, and a special payout after it benefited from strong operations and a high gold price in 2025.

The final dividend, which also arose from an updated dividend policy, came to R18.50 per share, while a special dividend per share of R4.50 was declared.

A $253m in special dividends and $100m in share buy-backs resulted in a total distribution to shareholders of US$1.7 billion (R27.3bn) which equated to 54% of adjusted free cash flow, the group said at the release of annual results Thursday.

"Operationally, we delivered a more predictable performance in 2023, keeping guidance unchanged throughout the year, delivering production at the upper end of guidance and costs within the guided range," said CEO Mike Fraser.

Group attributable gold-equivalent production increased 18% to 2,438koz in 2025, underpinned by strong performances across the portfolio. Last November, during a Capital Markets Day, Gold Fields' board announced their intention to provide additional returns to shareholders of up to $500m over the next 24 months based on cash flow projections, through special dividends or share buybacks.

During the year, Salares Norte mine in northern Chile had a successful ramp-up with a strong second half. Commercial production was achieved in the third quarter and steady state operations was reached in the fourth quarter, resulting in production of 397koz, above the guidance range (325koz – 375koz).

Salares Norte delivered $808m in free cash flow for the year, the highest in the group.

South Deep in South Africa saw a strong performance, with production of 309koz 16% higher and at the top end of guidance range. "South Deep remains a cornerstone asset, with the team focused on improving stope turnaround times and driving incremental performance gains."

Tarkwa mine in Ghana's waste stripping campaign continued in 2025. Production fell 12% as lower-grade stockpiles were used to supplement ore feed. AIC (all in sustaining costs) increased 26% driven by lower volumes of gold sold, general mining inflation, a 31% increase in royalties paid and increased capital expenditure.

Gruyere mine in Western Australia had a difficult fourth quarter, with ground instability and rock fall incidents resulting in the resequencing of mining activities to lower grade areas of the Gruyere pit. Head grade was further impacted as lower-grade stockpiles were processed to supplement ore feed. The mine also experienced increased workforce turnover in the second half, resulting in unplanned downtime of production equipment and a decrease in tons mined.

"While these challenges are expected to continue impacting operations at Gruyere in the first quarter, the team has identified action plans to improve mining performance," said Fraser.

These plans include improving mining fleet equipment availability, implementing optimisation initiatives to unlock mining efficiencies, and engaging with business partners to strengthen retention and recruitment strategies.

A key focus in the near to medium term was also to optimise Tarkwa's mining costs by improving efficiencies, reconfiguring the mining fleet and optimising the mine design.

In October 2025, Gold Fields completed the acquisition of Gold Road Resources and paid $1.42bn, net of cash received, a special dividend paid by Gold Road upon transaction close and the disposal of the Northern Star Resources shares acquired as part of the deal.

"Full ownership of Gruyere, together with the surrounding land package, enables Gold Fields to optimise the life-of-mine plan for the asset. The incremental expansion of the processing facility, together with consolidation of Gruyere, Golden Highway and the Yamarna land packages is expected to allow the asset to produce c.400koz on a sustainable basis over an extended period."

During 2026, studies would be conducted with the aim of optimsing the value of the Gruyere deposit, including an open-pit cutback versus underground trade-off study. Access to the higher-grade material from Golden Highway and the Gilmour deposit would be accelerated. Exploration across the under-explored 2000km Yamarna land package would be increased during 2026.

Gold Fields' share price increased 1.05% to R852.58 on the JSE Thursday morning.

BUSINESS REPORT