HomeMarket OverviewNew Investment Idea: Gold Fields

New Investment Idea: Gold Fields

New Investment Idea: Gold Fields

START - R292.81 | FINISH - R364.02

Major points:

  • HORIZON: 4 months
  • ​​MANAGEMENT ASSESSMENT: 24.32% growth


Buy Gold Fields Ltd (GFI) shares from the R292.81 level with a target of R364.02 for 4 months.


  1. Gold Fields’ South Deep holds one of the largest unmined gold resources globally. Substantial investments are starting to yield results, with production expected to increase by 25% over the next four years.
  2. There’s a focus on developing the Salares Norte gold mine in Chile which will diversify the company's asset base. Plans to list on the Toronto Stock Exchange could potentially increase visibility and attract more investors.
  3. Gold Fields has maintained an upward trend in the gold market over the past five years, indicating resilience and growth potential.
  4. GFI has made a commitment to pay out 30% - 45% of profits as dividends, providing consistent returns to shareholders.


  • Forward P/E ratio – 11.90x
  • Dividend yield – 2.65%
  • The company’s balance sheet metrics are strong:
  • GFI has total assets of R150.44B and total equity of R84.46B.
  • It has R11.86B cash on hand
  • It has a current ratio of 1.15


  • 1 Year EPS: R8.61


  1. Operational and Environmental Challenges: Recent weather related disruptions at Salares Norte impacted production, resulting in an 18% Y-o-Y drop in the first quarter of 2024. Additionally, there are environmental permitting issues, such as the chinchilla relocation at Salares Norte mine.
  2. Commodity Price Fluctuations: Gold Fields remains subject to the volatility of global gold prices that impact profitability and stock performance.


Any opinions, views, analysis or other information provided in this article is provided by BCS Markets SA trading as BROKSTOCK as general market commentary and should not be viewed as advice according to the FAIS Act of 2002. BCS Markets SA 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. BCS Markets SA 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. BCS Markets SA is an authorized financial services provider FSP No. 51404. 

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