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GFI Soars 37% in 3 Months: Can the Rally Extend as Output Rises?

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Key Takeaways

  • GFI gained 37% in three months as production jumped 22% and gold prices supported results.
  • Output rose to about 621,000 ounces, aided by Salares Norte ramp-up and stable operations.
  • Guidance of 2.25-2.45M ounces was reaffirmed, with strong cash flow and major projects progressing.

Gold Fields Ltd. (GFI - Free Report) has gained 37.4% in the past three months compared with the Zacks Mining - Gold industry’s 33.8% increase and the S&P 500’s modest 7.9% rise. GFI’s price performance was supported by its upbeat production results so far in fiscal 2025, solid cash flows and the rally in gold prices. Notably, in the third quarter, production jumped 22% on a year-over-year basis.  

Among its peers, Franco-Nevada Corporation (FNV - Free Report) is down 11.1% while AngloGold Ashanti Plc. (AU - Free Report) has rallied 48.6% over the past three months. 

Price Performance of GFI vs. Industry, S&P 500, AU and FNV

Zacks Investment ResearchImage Source: Zacks Investment Research

Technical indicators show that GFI has been trading above the 50-day and 200-day simple moving average (SMA). The 50-day SMA is reading higher than the 200-day SMA, indicating a bullish trend. 

Zacks Investment ResearchImage Source: Zacks Investment Research

Let’s look at the GFI’s fundamentals to better analyze the stock. 

Gold Fields Rallies on Output, Capacity and Prices

Gold Fields delivered attributable gold production of approximately 621,000 ounces, representing a year-over-year increase of 22% and a quarter-over-quarter rise of roughly 6%. The company attributed the increase primarily to the ramp-up at its Salares Norte operation and improved stability across its other mines.  

Average realized gold price for the quarter was approximately $3,468 per ounce.  

Backed by the performance so far, the full-year guidance of 2.25–2.45 million ounces was reaffirmed. Salares Norte is expected to produce up to 375,000 ounces this year, reaching 580,000 ounces annually by 2026. 

GFI Boasts Robust Balance Sheet and Liquidity Position

From a capital allocation standpoint, Gold Fields maintained a disciplined yet growth-oriented strategy. Gold Fields’ free cash flow was around $166 million in the third quarter of 2025. The increase was attributed to higher production, prices and improved cost efficiencies.  

The company significantly increased its interim dividend to 7 rand per share (equivalent to approximately 38 cents) on Aug. 22, 2025, from 3 rand a year ago, highlighting management’s commitment to returning value to shareholders.  

At the same time, it continued to fund major capital projects, particularly the ongoing development and winterization efforts at Salares Norte. For fiscal 2025, Gold Fields has guided total capital expenditure (Capex) of approximately $1.5 billion, including both sustaining and growth Capex. 

The company is considering a share buyback program, further signaling strong financial confidence. Despite the increase in capex and some inflation-related cost pressures, Gold Fields’ balance sheet remains healthy, with manageable debt levels and solid cash generation supporting its strategic goals. 

Mid-year cash and equivalents topped $1 billion, offering flexibility for operations and growth. Although net debt rose due to project investments, the net debt-to-EBITDA is 0.17x, indicating manageable leverage. The company also extended its $1.2 billion ESG-linked credit facility, aligning funding with its sustainability target. The total debt/capital of GFI is 35.44% compared with its industry’s 14.86%. The same for AngloGold is 18.46% and Franco-Nevada has zero leverage. 

Gold Fields Continues to Invest to Build a Solid Portfolio

Gold Fields operates across stable mining jurisdictions, including South Africa, Ghana, Australia, Chile and Peru, enhancing resilience and cash-flow stability. The company is advancing high-quality, long-life assets to drive future growth. 

The company continues to bolster its portfolio by investing in high-quality and long-life assets.Through the 2024 acquisition of Osisko Mining, it gained full ownership of the Windfall project in Quebec, Canada.Gold Fields is progressing the project, aiming to reach a final investment decision (FID) in the first quarter of 2026. The project is expected to yield roughly 300,000 ounces of gold per year, with an estimated all-in sustaining cost of about $758 per ounce, making it a key strategic asset within Gold Fields’ portfolio.  

In Australia, Gold Fields has completed its A$3.7 billion acquisition of Gold Road Resources, securing full ownership of the Tier-1 Gruyere gold mine in Western Australia. Gruyere, which previously operated as a 50:50 joint venture, produces approximately 350,000 ounces of gold annually.  

GFI’s Rising Earnings Estimates Reflect Positive Sentiments

The Zacks Consensus Estimate for 2025 and 2026 for GFI has been revised higher over the past 60 days.

Zacks Investment ResearchImage Source: Zacks Investment Research

The Zacks Consensus Estimate for its fiscal 2025 earnings is currently pegged at $3.12, suggesting solid year-over-year growth of 136.36%. Earnings are expected to register roughly 47.87% rise in 2026.  

Zacks Investment ResearchImage Source: Zacks Investment Research

Gold Fields Trading Above Industry 

Gold Fields is currently trading at a forward 12-month price-to-sales multiple of 7.11X, above the peer group average of 5.43X and its five-year median. GFI has a Value Score of C, while FNV and AU have a score of D.

Zacks Investment ResearchImage Source: Zacks Investment Research

The forward 12-month price-to-sales multiples for AngloGold and Franco-Nevada are 5.64X and 24.95X, respectively. 

Final Thoughts: Buy GFI Stock 

Gold Fields’ strong production momentum, expanding project pipeline and disciplined capital management position it well for sustained growth. With solid free cash flow, a strengthened balance sheet and exposure to rising gold prices, the company is executing effectively on both operational and strategic fronts. The ramp-up at Salares Norte, ownership of Gruyere, and progress at Windfall enhance long-term visibility and earnings potential. Given its improving fundamentals, resilient portfolio and shareholder-focused policies, GFI appears well-poised for further upside, making it an attractive buy for investors. GFI sports a Zacks Rank #1 (Strong Buy),  

You can see the complete list of today’s Zacks #1 Rank here.



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