Gold Fields open to further M&A growth

[Ben Graham]

Gold Fields (JSE: GFI) is open to further mergers and acquisitions as it strengthens its portfolio, lifts exploration spending and returns more cash to shareholders, CEO Mike Fraser said.

The South Africa-based gold producer continues to assess inorganic opportunities, particularly in Western Australia, where it sees scope for consolidation in the Goldfields region. The company already owns four mines there that account for about half of its global output.

“We continue to scan for opportunities, because improving our portfolio means that we have to find pathways to replace resources and reserves to create longevity,” Fraser told MINING.COM.

Gold Fields has been active on the deal front. In mid-2024, it acquired Osisko Mining for $1.58 billion (C$2.16 billion). Last year, it bought Gold Road Resources for $2.6 billion (A$3.7 billion). Fraser said while the company was comfortable operating in Africa, it was looking to add optionality in South America and grow its position in Canada to create more balance in the portfolio.

Exploration drive

Exploration will remain a key driver of resource and reserve replacement. The company increased exploration spending by 204% in 2025 to $298 million, largely due to higher activity in Canada. Fraser said 2025 marked the first time in a decade that Gold Fields deployed proprietary greenfield drill rigs in Australia.

“We are very committed to finding pathways for additional resources through the drill bit,” he said, adding that the company has also extended the life of existing assets and added reserves at known operations.

Last year, Gold Fields paid $36 million for a 10.5% stake in Founders Metals (TSX-V: FDR), owner of the district-scale Antino gold project in Suriname. Fraser said similar, longer-dated greenfield opportunities could offer value, especially as junior explorers face limited access to capital.

Returns boosted

On Thursday, Gold Fields reported headline earnings of $2.57 billion for 2025, more than double 2024’s result. Adjusted free cash flow rose to $2.97 billion from $605 million a year earlier.

The company produced 2.438 million ounces of gold at all-in sustaining costs of $1,645 an ounce and all-in costs of $1,927/oz.

Gold Fields declared a final dividend of R18.50 per share, up 164%, bringing the total dividend for 2025 to R25.50, or $1.60, per share. The payout equals 35% of free cash flow before discretionary investments. The company will also return an additional $353 million to shareholders through $253 million in special dividends and $100 million in share buybacks.

Fraser said the combined returns translate into a dividend yield above 6%, which he described as competitive within the gold mining sector.

Road ahead

Looking ahead, Gold Fields has set 2026 production guidance at 2.4–2.6 million ounces, with all-in sustaining costs of $1,800–2,000/oz and all-in costs of $2,075–2,300/oz.

Total capital expenditure is expected to remain elevated at $1.9–$2.1 billion, including $1.3–$1.4 billion in sustaining capital and $240–$340 million in non-sustaining capital.

Fraser said targeted investments in Australia will help offset cost pressures, although they will lift non-sustaining capital spending. Cost guidance is higher than outlined at the company’s November capital markets day due to increased royalties and currency movements.

The company expects total costs to rise about 12% year over year, broadly in line with industry trends, as structural mining cost inflation continues to weigh on the sector.