(Kitco News) - Gold Fields, a major gold producer, faced a year of two halves in 2024, marked by production challenges but capped by a strong finish and a record dividend, according to CEO Mike Fraser.
Speaking at the 2025 BMO Global Metals, Mining & Critical Minerals Conference, Fraser acknowledged a difficult first half, citing safety incidents and weather-related disruptions across their portfolio.
"The first half was absolutely forgettable from our point of view – really underperformed," Fraser told Kitco Mining. He specifically pointed to two fatalities, which he deemed "completely unacceptable," as well as severe weather impacting the Salares Norte project in Chile and other challenges.
Despite a 10% year-on-year decrease in production and a 26% increase in all-in-sustaining costs to $1,629 per ounce, Gold Fields saw a significant turnaround in the latter part of the year. "The second half production was up 26%, half on half," Fraser noted. This strong performance, coupled with rising gold prices, enabled the company to deliver robust cash flow and declare a record dividend of 10 rand per share.
Looking ahead, Fraser emphasized the company's focus on mitigating weather-related risks, a growing concern for the mining industry amid predictions of increasing climate volatility. Gold Fields is investing in practical measures such as increased consumable inventories and incorporating a probabilistic view of potential disruptions into their planning. "The old way of planning is just expecting every asset to perform to their potential is not always going to be the reality," Fraser explained.
The company is also progressing with key development projects. The Salares Norte project in Chile is expected to significantly ramp up production in 2025, with a target of 320,000 to 350,000 ounces, compared to the 45,000 ounces produced last year. Fraser highlighted the low-cost nature of the project and its potential to generate significant cash flow.
Meanwhile, the Windfall project in Quebec is gearing up for a final investment decision in early 2026. Gold Fields plans to invest around $400 million Canadian in 2025 to advance surface infrastructure, underground development, and project execution readiness. Fraser lauded Canada, particularly Quebec, as a "world-renowned destination for mining" with strong regulations and community support.
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