R57bn profit sees Gold Fields deliver R4bn special dividends to investors

Gold Fields Limited has delivered a massive nearly three-fold increase in annual profit, as record bullion prices and a strong ramp-up at its new Salares Norte mine in Chile fuelled a record-breaking financial year.

For the 12 months ended 31 December 2025, the globally diversified miner reported profit attributable to owners of $3 567.4 million (R57 billion), up from US$1 245.0 million (R20 billion) in the previous year.

A massive payday for shareholders

Capitalising on a surge in adjusted free cash flow, which jumped to $2 970 million (R47 billion) from just $605 million (R9.7 billion) in 2024, Gold Fields is returning a total of $1.7 billion (R27 billion) to its investors. This distribution represents 54% of adjusted free cash flow, significantly exceeding the company’s targeted base dividend policy.

The payout is structured to provide both immediate yield and long-term value:

• Final dividend: A gross payment of 1850 cents per share, bringing the total full-year dividend to 2550 cents, more than double the 1000 cents paid in 2024.
• Special dividend: An additional 450 cents per share, $253 million total, which is around R4 billion at current exchange rates.
• Share buybacks: A $100 million (R1.6 billion) repurchase programme to further enhance per-share value.

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Operational resilience and strategic growth

The miner’s performance was underpinned by a 18% increase in group attributable gold-equivalent production, which reached 2.438 million ounces.

This growth was primarily driven by the successful commissioning of the Salares Norte project, which reached steady-state operations in the fourth quarter, contributing 397 000 ounces for the year, surpassing the company’s upper guidance limit.

Other key assets also showed strength, with the South Deep mine in South Africa increasing production by 16% to 309 000 ounces.

While all-in sustaining costs (AISC) remained elevated at $1 645/oz due to industry-wide inflation and higher royalties, the average realised gold price soared to $3 496/oz, creating a vast margin for cash generation.

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Stronger balance sheet

Despite the aggressive capital returns, Gold Fields significantly de-leveraged its balance sheet. Net debt was slashed by over $644 million to end the year at $1 442 million. This resulted in a robust net-debt-to-ebitda ratio of 0.26x, down from 0.73x in 2024, providing the company with substantial flexibility for its five-year growth outlook.

Gold Fields CEO Mike Fraser noted that the safety improvement plan also yielded critical results, with no fatalities recorded across any operations in 2025.

Looking forward, the company is focusing on its “skills revolution” and asset optimisation to maintain a production profile of up to 3.0 million ounces per annum into the next decade.

This article was republished from Moneyweb. Read the original here.