Gold Fields Limited is a major global gold producer with a strong presence in South Africa, Australia, and Peru. The company is pursuing renewable energy across its mining operations with projects like the Khanyisa solar plant at South Deep mine and a microgrid at St Ives in Australia. These efforts are part of a broader strategy to reduce carbon emissions and manage energy costs effectively. As gold prices remain strong, driven by factors such as central bank purchases and geopolitical tensions, Gold Fields is positioning itself to capitalise on these favourable conditions. The mine plans to increase production in the second half of 2024. Understanding these dynamics is important for investors looking to evaluate Gold Fields' financial health and long-term growth.
Gold Fields’ share price fell by up to 12.6% to trade at R251.08 following its half-year results. The company expects to produce 2.05 to 2.15 million ounces of gold in 2024, down from an earlier target of 2.2 to 2.3 million ounces. The first half of the year’s production declined by 20% to 918 000 ounces, leading to a 15% drop in profit to $389 million. A severe winter affected the Salares Norte project in Chile while issues at South Deep are further hindering output. The gold miner anticipates improved performance in the second half due to better operations in Australia, Ghana, and Peru. Gold Fields recently announced a $1.6 billion investment in Osisko Mining to gain full control of the Windfall project in Canada.
Technical analysis summary
The share price has recently dropped to the mid-June level, currently trading at R263.3, a potential double bottom to look out for. The price is trading in an ascending wedge and has fallen below the lower bound of the pattern. Momentum indicators have not signaled any upside change. The share price is currently testing major technical signals.
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** This article was prepared by BROKSTOCK analyst Maboko Seabi
