07 May 2026
Gold Fields lists 'significant’ price increases caused by US-Iran war
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South African gold mining company Gold Fields reported "significant increases" in a number of key commodities since the beginning of the US-Iran war.
During the three months to March 31, all-in sustaining costs (AISC) hit a 13%-higher $1 829/oz and all-in costs (AIC) a 10%-higher $2 046/oz amid strong cash flow generation driven by increased sales volumes and higher gold prices.
Also mainly owing to the high volatility in global markets since the beginning of the conflict adversely affecting gold and gold equity prices, share repurchases under the company's $100-million share buyback programme announced in February have been limited.
Since February, the price of diesel had risen by between 30% and 70%, explosive and cyanide increases were both approximately 10% up, while LNG was up by an estimated 30%, and freight by about 40%.
Assuming an oil price of $100/bl, the impact would be between $40/oz to $50/oz on a portfolio level.
If prices moved higher, significant pressure would be placed on the company's ability to deliver cost within the guidance range, the Johannesburg- and New York-listed Gold Fields reported in its operational update for the three months to March 30.
To mitigate these cost pressures, management has initiated asset optimisation and broader cost optimisation initiatives such as strategic sourcing.
After payment of the final dividend of $1 234-million on March 16, net debt decreased by 34% year-on-year to $1 304-million reinforcing Gold Fields' solid financial position.
"We remain steadfast in our belief that fatality- and serious-injury-free mining is achievable and are encouraged to report that no fatalities or serious injuries were recorded in Q1 2026," Gold Fields CEO Mike Fraser reported.
"In 2026, we're focused on implementing our new group safety and risk standards and further cascading visible felt leadership behaviours to middle management and frontline supervisors through targeted training and coaching.
"We continue to embed our psychosocial risk framework and health standard to reduce workplace exposures, prevent occupational illness and protect the wellbeing of our people," Fraser stated, adding that delivering on the business simplification strategy required targeted investment in people, processes and systems.
He said that good progress had been made during the quarter to accelerate transformation objectives, which included the integration of supply chain capabilities, standardisation of systems and processes and targeted asset optimisation to lift productivity.
Group attributable gold-equivalent first-quarter production of 633 000 oz was slightly down on the 681 000 oz in the last quarter of 2025.
"Labour availability and workforce stability continue to present challenges across our Australian operations, impacting productivity. Workforce initiatives are progressing, supporting a more resilient and productive operating environment," Fraser pointed out.
PROGRESSING TO ARBITRATION
As previously disclosed in 2025 annual financial statements, Gold Fields received notices of dispute from mining contractor, Engineers and Planners (E&P) during March 2026 for historical claims relating to the Tarkwa and Damang mining contracts.
"Following engagement with E&P the matters are now progressing to arbitration. We are committed to resolving these matters in an orderly manner, while maintaining operational stability at Tarkwa," the company reported.
2026 GUIDANCE
Attributable gold-equivalent production for 2026 is expected to be between 2.4-million and 2.6-million ounces.
AISC is expected to be between $1 800/oz and $2 000/oz and AIC between $2 075/oz and $2 300/oz.
Total 2026 capital expenditure for the group is expected to be between $1 900-million and $2 100-million.
Sustai...
South African gold mining company Gold Fields reported "significant increases" in a number of key commodities since the beginning of the US-Iran war.
During the three months to March 31, all-in sustaining costs (AISC) hit a 13%-higher $1 829/oz and all-in costs (AIC) a 10%-higher $2 046/oz amid strong cash flow generation driven by increased sales volumes and higher gold prices.
Also mainly owing to the high volatility in global markets since the beginning of the conflict adversely affecting gold and gold equity prices, share repurchases under the company's $100-million share buyback programme announced in February have been limited.
Since February, the price of diesel had risen by between 30% and 70%, explosive and cyanide increases were both approximately 10% up, while LNG was up by an estimated 30%, and freight by about 40%.
Assuming an oil price of $100/bl, the impact would be between $40/oz to $50/oz on a portfolio level.
If prices moved higher, significant pressure would be placed on the company's ability to deliver cost within the guidance range, the Johannesburg- and New York-listed Gold Fields reported in its operational update for the three months to March 30.
To mitigate these cost pressures, management has initiated asset optimisation and broader cost optimisation initiatives such as strategic sourcing.
After payment of the final dividend of $1 234-million on March 16, net debt decreased by 34% year-on-year to $1 304-million reinforcing Gold Fields' solid financial position.
"We remain steadfast in our belief that fatality- and serious-injury-free mining is achievable and are encouraged to report that no fatalities or serious injuries were recorded in Q1 2026," Gold Fields CEO Mike Fraser reported.
"In 2026, we're focused on implementing our new group safety and risk standards and further cascading visible felt leadership behaviours to middle management and frontline supervisors through targeted training and coaching.
"We continue to embed our psychosocial risk framework and health standard to reduce workplace exposures, prevent occupational illness and protect the wellbeing of our people," Fraser stated, adding that delivering on the business simplification strategy required targeted investment in people, processes and systems.
He said that good progress had been made during the quarter to accelerate transformation objectives, which included the integration of supply chain capabilities, standardisation of systems and processes and targeted asset optimisation to lift productivity.
Group attributable gold-equivalent first-quarter production of 633 000 oz was slightly down on the 681 000 oz in the last quarter of 2025.
"Labour availability and workforce stability continue to present challenges across our Australian operations, impacting productivity. Workforce initiatives are progressing, supporting a more resilient and productive operating environment," Fraser pointed out.
PROGRESSING TO ARBITRATION
As previously disclosed in 2025 annual financial statements, Gold Fields received notices of dispute from mining contractor, Engineers and Planners (E&P) during March 2026 for historical claims relating to the Tarkwa and Damang mining contracts.
"Following engagement with E&P the matters are now progressing to arbitration. We are committed to resolving these matters in an orderly manner, while maintaining operational stability at Tarkwa," the company reported.
2026 GUIDANCE
Attributable gold-equivalent production for 2026 is expected to be between 2.4-million and 2.6-million ounces.
AISC is expected to be between $1 800/oz and $2 000/oz and AIC between $2 075/oz and $2 300/oz.
Total 2026 capital expenditure for the group is expected to be between $1 900-million and $2 100-million.
Sustai...