Gold Fields (GFI) H1 FY25 earnings call: guidance and Q&A

What should be expected for grade and recoveries at Salares Norte in H2, considering silver recovery issues and stockpile management?

Management confirmed a larger capacity furnace was commissioned in early August to improve silver recovery. For grade, they aim to process in line with the long-term life-of-mine grade profile of approximately 8 grams per tonne, avoiding high-grading.

“So what we have done is we've actually put in a larger capacity furnace, and that was commissioned in the beginning of August. And we're already seeing some of the benefits of that coming through.”

asked by Joshua Wolfson · answered by Michael Fraser

What is the mechanism and intention for the Northern Star share position acquired as part of the Gold Road transaction?

Chris Gratias explained that the offer value floats with the Northern Star share price, fixing the cash payment to Gold Road shareholders. Gold Fields will inherit the shares and intends to offload them as it is a non-core holding.

“We will then inherit the shares. And while we're considering our options are -- it's not going to be a noncore holding for us. So we will look to find ways to then offload that position and not take on any unnecessary risk.”

asked by Joshua Wolfson · answered by Chris Gratias

Where does Gold Fields sit in the CapEx cycle given planned projects, and how does it balance these investments with shareholder returns and debt reduction?

Management emphasized ranking opportunities, investing in the business, strengthening the balance sheet, and delivering shareholder returns. Many opportunities are for life extension, and material handling systems would require CapEx but with appropriate returns and cost reductions.

“we are in a very privileged point in the price cycle where we are generating a huge amount of cash. And what we're wanting to do is to, again, deliver those 3 things that we spoke about is, one, invest in our business for the long term, take debt off the balance sheet and improve the quality of our balance sheet, but equally making sure that we continue to deliver upper quartile returns to shareholders.”

asked by Adrian Hammond · answered by Michael Fraser

Given strong gold prices, why is the dividend payout ratio still conservative, and should investors model lower future payouts?

Management clarified that the interim payout (34% of normalized earnings) is consistent with past practice, with further opportunities for additional returns at year-end. They expressed confidence in future cash generation to support both growth and generous shareholder returns.

“We have consistently paid out approximately 35% of normalized earnings as our interim dividend. And then we look at the year-end at any top-up optionality.”

asked by Adrian Hammond · answered by Alex Dall

What is the expected Salares CapEx for the year, why is group capital guidance unchanged despite higher Salares spend, and will Australian infrastructure spend continue into 2026?

Alex Dall stated Salares CapEx will 'come off significantly' in H2. Group guidance is maintained because Damang's capital spend is reclassified as operating expense (due to short life) and some Windfall capital is now exploration expense. Tarkwa stripping is expected to continue into 2026.

“If we go to the CapEx at Salares, we do expect that to come off significantly in the second half of the year.”

asked by Christopher Nicholson · answered by Alex Dall

Can management confirm an updated feasibility study for Windfall will be provided on November 12, including operating costs?

Mike Fraser clarified that 'insight and guidance' on capital estimates and execution plan will be provided on November 12, but a formal detailed release with reserves will be in February 2026 post EIA. Yes, it will include operating costs guidance.

“But what we intend to do on the 12th of November is at least provide some insight and guidance. Clearly, one of the things that we don't want to distract from during the EIA process is to have formal additional documents in the public domain. But we will provide updates on capital and development pathway.”

asked by Tanya Jakusconek · answered by Michael Fraser

What is the current status of the Windfall EIA permitting and negotiations with First Nations (IBA)?

Mike Fraser detailed EIA submission of second round questions (waiting for response), public consultation in October, approval in Q1 2026. IBA negotiations with Cree First Nation of West Winnipeg are progressing, with specific compensation chapters this month, aiming for completion by year-end. Both are expected to be 'stapled' and approved concurrently.

“So the EIA has been in train for some time. We have now, at the end of July, submitted the second round of questions to [indiscernible], which are really the recommended body to approve the EIA.”

asked by Tanya Jakusconek · answered by Michael Fraser

What is the exact definition of commercial production for Salares Norte (30 days at 60% capacity, 85% gold recovery), and what is currently preventing its declaration?

Alex Dall confirmed the definition but noted uncertainty around silver grade and the new furnace. A detailed metal accounting review is underway, and commercial production will be declared once comfortable with recoveries, to be disclosed with the Q3 production update.

“And that is correct as a definition, but the other element of it was that we would -- we're also forecasting to maintain that. And there was just, as Mike mentioned, some uncertainty around the silver grade and the new furnace coming online.”

asked by Tanya Jakusconek · answered by Alex Dall

Is the previous plan to increase South Deep's production from 300,000 ounces to 400,000+ ounces in 3-5 years still active?

Mike Fraser confirmed it is 'absolutely' still a plan, involving investment in the South of Ranch mining domain. He noted caution for the next few years but ambition for longer-term potential, with more strategic insight to be shared at the November Capital Markets Day.

“Yes, absolutely. So we do have a future plan for South Deep, where we will see a ramp-up. And that part of that is about the investment into South of [ Ranch ], which is the next mining domain.”

asked by Tanya Jakusconek · answered by Michael Fraser