South African mining giant strikes gold

Gold Fields said its full-year profit surged by 77% as the price of bullion soared, and it started to overcome operational challenges at mines in Chile and South Africa.

Earnings climbed to $1.25 billion (R23.1 billion) in 2024, the Johannesburg-based company said in a statement on Thursday. Gold Fields expects production of 2.25 million to 2.45 million ounces this year, an increase of as much as 18%.

“There was a significant turnaround during the second half of 2024,” Chief Executive Officer Mike Fraser said in the statement.

A severe winter slowed the ramp-up of output at the company’s Salares Norte project in Chile. The open pit mine — about 4,000 meters (13,000 feet) above sea level in the Andes mountains — is one of the main drivers of Gold Fields’ plan to replace mature assets and increase production.

It now expects commercial output to only start in the second quarter of this year.

Challenges at its South Deep mine in South Africa also curbed output, but the operation had a stronger second half.

Gold prices have soared more than 40% since the beginning of last year, notching multiple records during the period and driving acquisitions by miners of the precious metal.

Last year, Gold Fields announced a $1.6 billion deal to buy Osisko Mining, giving the company full control of the Windfall development project in Canada.

Like its rival AngloGold Ashanti, Gold Fields said capital expenditure will remain elevated this year. The CEO expects a total capex of as much as $1.55 billion.