NYSE$GFI

Gold Fields Ltd-ADR · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Gold Fields saw stable production in Q2 2023, but higher costs and project investments impacted free cash flow and net debt.

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.

Headline financials

Total Revenue

$1.17B

Previous: $2.24B-47.8%
EPS (adj)

$0.26

Previous: $0.57-54.4%
Gold Eq. Production

577.0K

No prior period
Gold Price Realised

$1.93K

No prior period
All-in Sustaining Cost

$1.27K

No prior period
All-in Cost

$1.53K

No prior period
Net Debt

$1.19B

No prior period
Net Debt to EBITDA

0.5

No prior period
Free Cash Flow

$38M

No prior period
Net Income

$112M

Previous: $510M-78.0%
Operating Income

$745M

Previous: $811M-8.2%
Gross Profit

$1.27B

Previous: $1.25B+1.0%
R&D Expense

$0.00

Previous: $0.00

Revenue & EPS history

Gold Fields · Revenue · Quarterly

$1.17B

Q2 2023-47.8%vs Q2 2022
Beat estimate in 6 of 9 quarters(67%)
ActualEstimate

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.

Tailwinds

  • 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

Headwinds

  • 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

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.5%

Avg return

Earnings day

+1.7%

Avg return

5 days after

+7.5%

Avg return

30 days after

46%

17 / 37 earnings

Positive

+16.4%

Q2 2015

Best reaction

-11.7%

Q4 2014

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2023-4.4%-8.2%+11.8%
Q3 2023+0.3%+5.5%+24.3%
Q2 2023-10.0%-7.9%-3.4%
Q1 2023-1.1%-0.9%-3.1%
Q4 2022+1.7%+6.7%+18.8%
Q2 2022-2.6%-2.3%-6.4%
Q4 2021+3.7%-5.5%-13.6%
Q3 2021+0.1%+4.5%-6.9%
Q2 2021+1.9%+3.6%+10.8%
Q4 2020+9.0%+10.1%+0.9%
Q2 2020+2.6%+1.0%+39.8%
Q4 2019+8.8%+18.8%+50.1%
Q2 2019-6.3%-4.3%+3.9%
Q4 2018-1.6%+2.7%+7.3%
Q2 2018-0.8%+2.2%+3.1%
Q4 2017-1.0%-1.3%+1.6%
Q2 2017+0.0%+4.4%+18.5%
Q4 2016-1.9%-1.6%-6.8%
Q2 2016+5.5%+3.8%-8.6%
Q4 2015-6.4%
Q3 2015+15.2%
Q2 2015+16.4%
Q1 2015-10.0%
Q4 2014-11.7%
Q3 2014+0.3%
Q4 2013+5.2%
Q2 2013+0.2%
Q4 2012-7.6%
Q2 2012-1.6%
Q4 2011-0.8%
Q2 2011-1.8%
Q1 2011+1.4%
Q2 2010+1.4%
Q4 2010+1.5%
Q4 2008-7.6%
Q4 2009-7.6%
Q4 2007-7.6%

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