● Entry Point: Price action near R390.76 may present a favourable risk-reward setup based on recent technical patterns.
● Risk Management: A protective stop level around R330 is often considered by traders to manage volatility risk.
● Profit Objective: A technical upside towards the R468.94 level, reflecting a potential movement of approximately 20%, has been observed.
● Acquisition of Australian Gold Road: Gold Fields announced an agreement to acquire Australia’s Gold Road Resources for R44 billion, offering a 43% premium over Gold Road’s pre-deal share price. This acquisition secures full ownership of the Gruyere gold mine in Western Australia, potentially enhancing operational efficiency and strengthening presence in a stable mining jurisdiction.
● Diversified Global Operations: he group operates nine mines across Australia, South Africa, Ghana, Peru, and Chile, with a development project in Canada. This broad geographical diversification helps to mitigate region-specific risks and provides exposure across global gold markets.
● Strong Financial Performance: Gold Fields reported a robust performance in 2024, with normalised earnings of R22.2 billion, up 36% year-on-year. Free cash flow rose by 65% to R11.2 billion, supported by stronger gold prices averaging R44 733/oz. A final dividend of R7 per share was declared, reflecting an 80% return of 2024 free cash flow to shareholders.
Gold Fields’ share price recently moved above a long-term ascending channel, reaching an all-time high of R498.28. After the breakout, the price retraced slightly to retest the upper boundary of the channel — a technical pattern often interpreted as a support confirmation.
The share price remains above both the 50-day and 200-day simple moving averages, indicating a continuation of the prevailing upward trend.
● Highly sensitive to gold prices: Gold Fields' financial performance is closely linked to gold prices. A decline in gold prices, due to a stronger US dollar, rising interest rates, or shifts in global risk appetite, could negatively affect earnings and share performance.
● Geopolitical & ESG risks: GFI operates in multiple jurisdictions across Africa, the Americas, and Australia, exposing it to political, regulatory, and environmental risks that could disrupt operations or increase compliance costs.
Disclaimer:
*Any opinions, views, analysis or other information provided in this article is provided by BROKSTOCK trading as BROKSTOCK as general market commentary and should not be viewed as advice according to the FAIS Act of 2002. BROKSTOCK does not warrant the correctness, accuracy, timeliness, reliability or completeness of any information provided by third parties. You must rely upon your judgement in all aspects of your investment decisions and all decisions are made at your own risk. BROKSTOCK A and any of its employees shall not be responsible for and will not accept any liability for any direct or indirect loss including without limitation any loss of profit which may arise directly or indirectly from use of the market commentary. The content contained within the article is subject to change at any time without notice. BROKSTOCK A is an authorised financial services provider FSP No. 51404.
** This article was prepared by BROKSTOCK analyst Maboko Seabi
