We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Gold Field's Cash Flow Triples in H1: Can it Sustain This Momentum?
Read MoreHide Full Article
Key Takeaways
Gold Fields' operating cash flow jumped 203.5% to $1.31B in the first half of 2025.
Higher gold prices and a 24% rise in production drove the strong financial performance.
A 4% drop in AISC and a doubled interim dividend highlight improved cost control and returns.
Gold Fields Limited (GFI - Free Report) generated robust cash flow in the first half of 2025, which, in turn, drove a substantial increase in its interim dividend. Specifically, cash flows from operating activities were around $1.31 billion compared with $0.4 billion in the first half of 2024, representing a 203.5% rise. Its adjusted free cash flow for the first half of 2025 was $952 million compared with an outflow of $57.8 million a year ago.
The notable improvement was largely driven by a 40% increase in the average gold price and a 24% rise in attributable gold production, which reached 1.136 million ounces. This growth was driven by the successful ramp-up of the Salares Norte project in Chile and improved performance at the South Deep mine. Output in the year-ago period had been affected by adverse weather conditions.
Cost efficiencies improved, with the all-in sustaining cost (AISC) decreasing 4% year over year to $1,682 per ounce. All-in cost (AIC) also fell 5% year over yearto $1,957 per ounce, reflecting better cost absorption due to higher output.
The company’s confidence in its financial position was underscored by an increase in the interim dividend to 700 South African cents per share (approximately 38 cents), more than doubling the previous year’s payout.
Gold Fields is poised for continued strong cash flow, supported by rising production from Salares Norte, sustained high gold prices and improved operational efficiency across key assets. With major capital projects nearing completion and costs stabilizing, the company is well-positioned to enhance margins, strengthen its balance sheet and deliver increased shareholder returns in the coming quarters.
Among peers, Barrick Mining Corporation (B - Free Report) to demonstrate strong cash flow generation, supported by rising gold and copper prices and ongoing operational improvements. In the first half of 2025, Barrick generated a total operating cash flow of approximately $2.4 billion, marking a30% year-over-year increase, reflecting robust price realization and improved asset performance across its portfolio.
Capital expenditure for the half year remained disciplined at around $1 billion, with strategic allocations toward key growth projects, such as Reko Diq in Pakistan and Lumwana in Zambia, both expected to meaningfully expand production capacity and diversify revenue streams over the medium term. Barrick remains well-positioned to sustain strong cash generation in the second half of 2025 and deliver continued shareholder value through dividends and potential buybacks.
Newmont Corporation (NEM - Free Report) ) is poised for continued strong cash flow generation, supported by favorable gold prices and operational efficiencies. In thefirst half of 2025, Newmont generated operating cash flow of approximately $4.1 billion and free cash flow of around $2.6 billion, reflecting solid operational execution and disciplined cost management. With disciplined capital allocation and a focus on high-return projects, Newmont is well-positioned to enhance shareholder value and maintain a strong balance sheet in the coming quarters.
The Zacks Rundown for GFI
Shares of GFI have popped 228.7% year to date compared with its industry's 120.2% growth, driven by strong operational efficiency, higher gold price, improved capital discipline and increased shareholder confidence resulting from clear strategic execution and financial strength.
Image Source: Zacks Investment Research
From a valuation perspective, GFI is currently trading at 13.14X, a discount of about 20.2% to the industry’s average of 16.46X. It carries a Value Score of C.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GFI for 2025 and 2026 earnings of $2.72 and $3.47 implies year-over-year growth of 106.06% and 27.6%, respectively. The consensus estimate for both years has been trending higher over the past 60 days.
Image: Bigstock
Gold Field's Cash Flow Triples in H1: Can it Sustain This Momentum?
Key Takeaways
Gold Fields Limited (GFI - Free Report) generated robust cash flow in the first half of 2025, which, in turn, drove a substantial increase in its interim dividend. Specifically, cash flows from operating activities were around $1.31 billion compared with $0.4 billion in the first half of 2024, representing a 203.5% rise. Its adjusted free cash flow for the first half of 2025 was $952 million compared with an outflow of $57.8 million a year ago.
The notable improvement was largely driven by a 40% increase in the average gold price and a 24% rise in attributable gold production, which reached 1.136 million ounces. This growth was driven by the successful ramp-up of the Salares Norte project in Chile and improved performance at the South Deep mine. Output in the year-ago period had been affected by adverse weather conditions.
Cost efficiencies improved, with the all-in sustaining cost (AISC) decreasing 4% year over year to $1,682 per ounce. All-in cost (AIC) also fell 5% year over yearto $1,957 per ounce, reflecting better cost absorption due to higher output.
The company’s confidence in its financial position was underscored by an increase in the interim dividend to 700 South African cents per share (approximately 38 cents), more than doubling the previous year’s payout.
Gold Fields is poised for continued strong cash flow, supported by rising production from Salares Norte, sustained high gold prices and improved operational efficiency across key assets. With major capital projects nearing completion and costs stabilizing, the company is well-positioned to enhance margins, strengthen its balance sheet and deliver increased shareholder returns in the coming quarters.
Among peers, Barrick Mining Corporation (B - Free Report) to demonstrate strong cash flow generation, supported by rising gold and copper prices and ongoing operational improvements. In the first half of 2025, Barrick generated a total operating cash flow of approximately $2.4 billion, marking a30% year-over-year increase, reflecting robust price realization and improved asset performance across its portfolio.
Capital expenditure for the half year remained disciplined at around $1 billion, with strategic allocations toward key growth projects, such as Reko Diq in Pakistan and Lumwana in Zambia, both expected to meaningfully expand production capacity and diversify revenue streams over the medium term. Barrick remains well-positioned to sustain strong cash generation in the second half of 2025 and deliver continued shareholder value through dividends and potential buybacks.
Newmont Corporation (NEM - Free Report) ) is poised for continued strong cash flow generation, supported by favorable gold prices and operational efficiencies. In thefirst half of 2025, Newmont generated operating cash flow of approximately $4.1 billion and free cash flow of around $2.6 billion, reflecting solid operational execution and disciplined cost management. With disciplined capital allocation and a focus on high-return projects, Newmont is well-positioned to enhance shareholder value and maintain a strong balance sheet in the coming quarters.
The Zacks Rundown for GFI
Shares of GFI have popped 228.7% year to date compared with its industry's 120.2% growth, driven by strong operational efficiency, higher gold price, improved capital discipline and increased shareholder confidence resulting from clear strategic execution and financial strength.
Image Source: Zacks Investment Research
From a valuation perspective, GFI is currently trading at 13.14X, a discount of about 20.2% to the industry’s average of 16.46X. It carries a Value Score of C.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GFI for 2025 and 2026 earnings of $2.72 and $3.47 implies year-over-year growth of 106.06% and 27.6%, respectively. The consensus estimate for both years has been trending higher over the past 60 days.
Image Source: Zacks Investment Research
GFI currently carries a Zacks Rank of #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.