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Jun 30, 2023
Gold Fields Q2 2023 Earnings Report
Gold Fields saw stable production in Q2 2023, but higher costs and project investments impacted free cash flow and net debt.
Key Takeaways
In Q2 2023, Gold Fields reported attributable gold production of 577,000 ounces, flat from the prior quarter. AISC increased to $1,274/oz and AIC rose to $1,525/oz, driven by inflationary pressures and project-related spending. Net debt increased to $1.193 billion, with a higher net debt/EBITDA ratio of 0.50x. Despite these cost pressures, the company reaffirmed its FY guidance.
Gold production remained steady at 577,000 ounces in Q2 2023.
AISC rose to $1,274/oz and AIC increased to $1,525/oz due to project capex.
Free cash flow decreased to $38 million amid higher costs and capex.
Net debt rose to $1.193 billion, with a net debt/EBITDA ratio of 0.50x.
Revenue by Geographic Location
Forward Guidance
Gold Fields reaffirmed its FY23 production guidance of 2.25–2.30Moz with cost estimates unchanged, while managing inflation and ramping up Salares Norte.
Positive Outlook
- Full-year production guidance of 2.25–2.30Moz maintained
- AISC guidance reaffirmed at $1,300–$1,340/oz
- Salares Norte construction at 97% completion by end of Q2
- Operational performance steady across core assets
- Focus on capital discipline and margin protection
Challenges Ahead
- Free cash flow declined to $38M due to capex and cost inflation
- AIC rose sharply to $1,525/oz in Q2
- Net debt increased to $1.193B from $875M in Q1
- Net debt/EBITDA ratio climbed to 0.50x
- Inflationary pressures and power cost increases impacted margins
Historical Earnings Impact
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Avg. Return Before/After Earnings
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