Mike Fraser

WITH the tailwind of a strong gold price, CEO Mike Fraser stabilised Gold Fields’ production and concluded two deals to grow production by about a third. This should silence analysts’ grumbling about a looming production cliff. The deals also have the benefit of logic.

Fraser bought out joint venture partners in Osisko Mining, acquiring full control of Windfall, a project near Quebec, and Gold Road Resources for Gruyere, a 325,000-ounces-a-year mine with expansion potential in Australia. All in all, this dealmaking adds 650,000oz/year to group production. There’s also been progress addressing commissioning delays at the Salares Norte mine in Chile, which was hit by the early onset of a severe winter in 2024. Steady state production of 550,000-580,000oz will be locked in this year.

In Ghana, Gold Fields has grown reserves at Tarkwa 70%, partly by using a higher reserve price, while Fraser has achieved an agreement with the government to hand back Damang after April. Fraser is keeping an open mind on gold sector mergers and acquisitions, but his preference is for exploration. Gold Fields has 19 active projects and is testing 40 additional sites. As part of a capital markets day in November, Gold Fields promised $500m in dividends or share buybacks over two years – a pledge that underwhelmed some analysts, who pointed to higher-than-anticipated capital costs on the growth ounces, especially Windfall. The market’s outlook is too short term, Fraser replied.