Gold Fields CEO Chris Griffith is in the C-SUITE with the company reporting a strong first half

Gold Fields CEO Chris Griffith is in the C-SUITE with the company reporting a strong first half

The operating environment during H1 2022 was dominated by elevated mining cost inflation driven by rising commodity and fuel prices. Despite these challenges, Gold Fields had a strong H1 2022, with production increasing 9% YoY and all-in costs rising only 6% YoY. As a result of the increased production combined with a 3% higher gold price, the company increased its normalised earnings by 16% YoY and generated strong free cash flow of US$293m. This enabled the company to declare an interim dividend of 300 SA cents per share and further reduce their net debt by almost US$120m from the end of FY 2021.

The proposed acquisition of Yamana, announced at the end of May 2022, was the key focus during H1 2022. CEO Chris Griffith maintains the view that the acquisition of Yamana represents the best option to accelerate Gold Fields’ growth strategy and deliver long term shareholder value. Having explored both organic growth and bolt-on acquisitions, moving to completion stage of the transaction is the best opportunity to accelerate the next phase of Gold Fields’ growth in value.