While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies. Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, in ...

Core Viewpoint - Gold Fields Limited reported disappointing first-half results, leading to a nearly 10% decline in stock price and a downgrade in full-year production guidance [4][10][16]. Company Overview - Gold Fields is a South African gold mining company with operations in South Africa, Western Africa, Australia, Canada, and Peru [6]. Financial Performance - First-half managed production decreased by approximately 22.3% year-over-year to 954,000 ounces, while attributable production fell by about 22.4% to 918,000 ounces [10]. - All-in-sustaining costs rose by 43.86% to $1,745 per ounce, resulting in a $161 million year-over-year decrease in adjusted free cash flow from operations [10]. Production Challenges - Gruyere's production dropped by 20% year-over-year to 127,000 ounces due to severe weather, but production is expected to ramp up later in 2024 [12]. - St. Ives' production fell by 25% year-over-year to 139,000 ounces, attributed to lower grades, with a forecasted rebound of 49% half-over-half [12]. - South Deep mine's production decreased by 25% year-over-year to 117,000 ounces, primarily due to a fatality incident and operational challenges, but a 14% increase is anticipated half-over-half [13]. - Cerro Corona's production fell by 42% to 79,000 ounces, mainly due to weather-related issues [14]. Guidance Revision - The company revised its full-year production guidance to between 2 million and 2.15 million ounces, down from the previous forecast of 2.2-2.3 million ounces [16]. Market Conditions - Gold prices are expected to remain strong, driven by a potential U.S. interest rate pivot and heightened systematic risk, which may lead traders to use gold as a hedge [17]. - Gold Fields has a dividend policy of 40% of normalized earnings, with a four-year average yield of 2.89% [18]. Stock Analysis - The average sell-side analyst price target for Gold Fields is $17.44, indicating nearly 20% upside potential [19]. - The stock's relative strength index (RSI) has dropped to the 30 handle, suggesting it may be oversold [20]. Conclusion - Gold Fields' stock is viewed as an equal-weight asset, with potential entry points due to the recent slump and expected normalization of mining operations [21].

Financial Data and Key Metrics Changes - The company reported a 20% year-on-year decline in production, leading to a 22% decrease in normalized earnings to $355 million [21][32] - Adjusted free cash flow was significantly impacted, resulting in an outflow of $58 million [21] - All-in cost increased to $2,060 per ounce, driven by lower production and higher capital expenditures [21][32] Business Line Data and Key Metrics Changes - Australian assets contributed around half of the group's production and cash flow, while Ghanaian operations contributed about a third [5] - Gruyere mine's production was affected by heavy rains, leading to a 62% increase in all-in cost to AUD2,676 per ounce [9] - St Ives gold production decreased by 25% to 139,000 ounces, with all-in costs expected to be AUD2,900 [11] - South Deep's production decreased by 25% to 117,000 ounces, with all-in costs rising by 41% [12] Market Data and Key Metrics Changes - The company downgraded its 2024 production guidance to between 2.05 million ounces and 2.15 million ounces, a reduction of 150,000 ounces from previous guidance [8][32] - The higher gold price helped offset the decline in production, allowing for $320 million in adjusted free cash flow from operations [7] Company Strategy and Development Direction - The company aims to become a safe, reliable, and cost-effective producer, focusing on high-quality assets like St Ives, South Deep, Tarkwa/Iduapriem JV, and Windfall [24][25] - The acquisition of Osisko Mining consolidates 100% ownership of the Windfall project, which is expected to be a significant contributor to cash flows [28][30] - The company is pursuing bolt-on M&A and exploration opportunities while balancing returns to shareholders [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a stronger second half of 2024, particularly from South Deep, Tarkwa, Gruyere, St Ives, and Cerro Corona [7][32] - The ramp-up of Salares Norte has been delayed due to severe winter weather, impacting production expectations [18][20] - Management emphasized the importance of improving safety performance and implementing findings from an independent safety review [6][33] Other Important Information - The company reported two fatalities in the first half of 2024, highlighting the need for improved safety measures [2][6] - A dividend of ZAR0.300 was announced, representing a payout ratio of 40% of normalized earnings [21] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating the end of the presentation and Q&A session [35]

Today's sell-off may be giving gold investors a buying opportunity. Shares of South African gold mining stock Gold Fields (GFI -7.71%) slid 8% through 1:50 p.m. ET Friday after the company reported disappointing earnings results for the first half of 2024. That's not my word -- "disappointing." It's how CEO Mike Fraser himself described a first half in which gold production dropped 20%, leading to a 16% decline in net income to $0.43 per diluted share. Gold Fields' first-half earnings Gold retails for more ...

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GOLD FIELDS | --- | --- | |---------------------------------------------|---------------------------| | | | | | | | | | | Gold Fields H1 2024 Results Mike Fraser CEO | | | | Granny Smith, Wallaby pit | | | 1 | | | | Important information Forward Looking Statements This announcement contains forward-looking statements within the meaning of the "safe harbour" provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this announcemen ...

Gold Fields Limited (GFI) announced that it signed a deal to acquire Osisko Mining. This move is in sync with GFI's goal to strengthen its portfolio through investments in high-quality and long-life assets. The transaction is expected to close in the fourth quarter of 2024, subject to approvals by Osisko shareholders and others. Once the shareholders of Osisko Mining approve the deal, Gold Fields will gain complete ownership of the Windfall Project in Québec, Canada. Gold Fields and Osisko Mining have owned ...

While the precious metals complex largely enjoyed a positive session on Monday thanks to gold's spot price rising, South African gold miner Gold Fields (NYSE:GFI) suffered the opposite trajectory: GFI stock stumbled and quite badly, losing roughly 5% of market value. Driving the sentiment downward was the company's announced acquisition of Canada's Osisko Mining (OTCMKTS:OBNNF) in a deal valued at $2.16 billion. Investors seem to believe that the deal is too rich for Gold Fields, which will use cash to acqu ...

Michael McCrae Michael McCrae is leading Kitco's coverage of the mining sector. McCrae, who has both an MBA and CMA, knows how to build digital media properties. He was cofounder and publisher of MINING.com, an award-winning news site. Before coming to media, McCrae worked in IT and banking. Please reach out: mmccrae@kitco.com or (514) 670-1383. You can also follow him at @michaelmccrae. Share Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals I ...

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government. S ...