Gold Fields Limited — 2023 Form 20-F
Business context and reporting period. Annual report for the year ended 31 December 2023, filed 28 March 2024. Gold Fields is a South African gold producer with operations in Australia, South Africa, Ghana and Peru, and development projects in Chile and Canada. Financial statements are prepared under IFRS and presented in U.S. dollars. The filing is an annual report, not a standalone fourth-quarter report.
Key financial and operating metrics
| Metric | 2023 | 2022 | Change / context |
|---|---|---|---|
| Revenue | US$4.501bn | US$4.287bn | Up 5%, mainly from a higher realised gold price |
| Profit attributable to owners | US$703m | US$711m | Down 1%; includes discontinued Asanko loss in 2023 |
| Profit from continuing operations | US$745m | US$709m | Up 5% |
| Normalised profit | US$900m | US$860m | Up 5%; non-IFRS measure |
| Net cash from operations | US$1.576bn | US$1.715bn | Down 8% |
| Adjusted free cash flow | US$367m | US$431m | Down 15%; non-IFRS measure |
| Cash and cash equivalents | US$649m | US$769m | Down US$121m |
| Total borrowings | US$1.237bn | US$1.079bn | Up US$157m |
| Net debt | US$1.024bn | US$704m | Up US$320m; net debt/adjusted EBITDA 0.42x, versus 0.29x |
| Attributable gold-equivalent production | 2.304Moz | 2.399Moz | Down 4%; excluding Asanko, 2.244Moz |
| AISC / AIC | US$1,295/oz / US$1,512/oz | US$1,105/oz / US$1,320/oz | Reported figures include Asanko; AISC up 17%, AIC up 15% |
| Capital expenditure | US$1.055bn | US$1.069bn | US$692m sustaining and US$363m growth/project capital |
The average gold price received was US$1,942/oz, up from US$1,785/oz. Cost of sales increased 5% to US$2.747bn; mining inflation and lower ounces sold contributed to higher per-ounce costs. AISC and AIC are non-IFRS measures and may not be comparable with similarly titled measures at other miners.
Material changes and unusual items
- Production declined 4%, while revenue rose on the higher gold price. Attributable profit fell slightly; continuing-operations profit and normalised profit increased.
- Net debt rose principally due to US$247m paid to acquire the Windfall interest and US$69m of subsequent Windfall capital contributions.
- A US$156m impairment was recorded for the Peru cash-generating unit, reflecting cost and capital pressures, East Wall work and resource sterilisation associated with planned in-pit tailings. Asanko also incurred a US$47m impairment before its sale.
- Damang recorded a US$34m stockpile net-realisable-value adjustment. Its production fell 34% to 153koz and the mine is processing stockpiles after open-pit mining ended.
- Comparability with 2022 is affected by the US$300m Yamana break fee recorded in that year. The 2023 cash-flow comparison also reflects the absence of that receipt.
Guidance, outlook and management commentary
- 2024 Group guidance, excluding Asanko: attributable gold-equivalent production of 2.33–2.43Moz; AISC of US$1,410–US$1,460/oz; AIC of US$1,600–US$1,650/oz; total capital expenditure of US$1.13–US$1.19bn, including US$860–US$890m sustaining capital.
- Guidance includes approximately US$132m for the St Ives renewable power project. Excluding that project, management gives AISC guidance of US$1,350–US$1,400/oz and AIC of US$1,540–US$1,590/oz.
- Salares Norte: first gold was delayed to April 2024; management forecasts 250koz gold-equivalent production in 2024 and 580koz in 2025. Total project capital cost was revised to US$1.18–US$1.20bn. The project plan and ramp-up remain execution risks.
- Portfolio: Gold Fields completed the sale of its 45% Asanko interest in March 2024 for total stated consideration of US$170m, including an initial US$65m cash payment and Galiano shares, with further consideration and a royalty subject to terms and conditions. The proposed Tarkwa/Iduapriem JV remained subject to Ghanaian government approval. Windfall is a 50/50 JV with Osisko; environmental approval and project execution remain outstanding.
- Capital returns: the 2023 dividend was R7.45/share, equal to about 40% of normalised earnings. The stated policy is to pay 30%–45% of normalised earnings, subject to the policy’s terms and business conditions.
- Key risks: two operational fatalities occurred in Ghana during 2023, with a further fatality at South Deep on 2 January 2024. An independent safety review was initiated. A workplace culture review found concerning levels of bullying, harassment and discrimination; management committed to implementing recommendations. Other material risks include inflation, gold and currency volatility, power reliability in South Africa, water availability, reserve replacement, project delays, regulatory and political change, tailings and geotechnical risks, and cybersecurity.
- The Board stated that the Group has adequate resources to continue as a going concern. PwC issued unqualified opinions on the IFRS financial statements and internal control over financial reporting.
Important facts for investors to verify
- Reconcile production and cost figures by basis: 2.304Moz includes Asanko, while 2.244Moz is attributable production excluding it; confirm whether per-ounce cost comparisons include Asanko.
- Track Salares Norte first gold, ramp-up, 2024 output and final project cost against the revised schedule and budget.
- Check progress on Ghana’s approval of the Tarkwa/Iduapriem JV and on environmental approvals, funding and execution milestones for Windfall.
- Review debt maturities, available credit facilities, the May 2024 bond maturity and cash generation against the increased 2024 capital programme.
- Assess the treatment and realisation of Asanko sale proceeds, deferred or contingent consideration, Galiano shares and the Nkran royalty.
- Monitor safety-review actions, workplace-culture remediation, water and tailings targets, and the assumptions behind non-IFRS measures and mineral estimates.