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Gold Fields said it had a “solid start” to 2026 and remains on track to meet full-year production and cost guidance, despite disruptions at several mines and higher input costs. Q1 gold-equivalent production rose 15% year over year to 633,000 ounces, helped by Salares Norte.
Costs increased in the quarter, with all-in sustaining costs up 13% to $1,829 per ounce, but management still expects to hit guidance. The company also generated strong cash flow, cut net debt to $1.3 billion, and allocated $100 million to share buybacks.
Operational issues at Gruyere, Agnew, and Tarkwa were described as recoverable, while major portfolio items remain on track, including the Windfall project and the Tarkwa lease extension talks in Ghana. Fraser said Windfall could face a delay if permits slip beyond July, but the base-case schedule still appears likely.
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Gold Fields (NYSE:GFI) reported a “solid start” to 2026, with Chief Executive Officer Mike Fraser saying the miner remains on track to meet its full-year production and cost guidance despite operational disruptions at several mines and rising input-cost pressures.
On the company’s Q1 2026 operating update call, Fraser said gold-equivalent production rose 15% from the prior-year quarter to 633,000 ounces, supported by a strong contribution from Salares Norte. Output was 7% lower than in the fourth quarter of 2025, which Fraser said reflected a planned stronger finish to last year.
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“At a portfolio level, we’re certainly comfortable that we’re well-placed to deliver on our market guidance for the full-year,” Fraser said.
The company also reported no fatalities or serious injuries during the quarter. Fraser said Gold Fields continues to focus on leadership capability, risk and safety systems, and collaboration with business partners as part of its safety improvement program.
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Chief Financial Officer Alex Dall said costs were under pressure in the quarter. All-in sustaining costs rose 13% year over year to $1,829 per ounce, while all-in costs increased 10% to $2,046 per ounce.
Dall attributed the increase mainly to external factors, including higher royalties linked to the gold price, a stronger Australian dollar and rand when translated into U.S. dollars, and inflation across key inputs.
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He said the company remains on track to meet cost guidance, though it is monitoring higher input costs following the start of the war in Iran. Dall said that if oil were modeled at $100 per barrel, compared with the company’s guidance assumption of $75 per barrel, the impact would be about $50 per ounce across the portfolio after factoring in related effects on items such as cyanide, LNG, explosives and freight.
Gold Fields generated strong cash flow during the quarter, supported by higher sales volumes and gold prices. Dall said net debt fell to $1.3 billion at quarter-end after payment of a $1.2 billion final dividend. The company also allocated $100 million to its share buyback program, though execution was limited because of share-price volatility and timing around the program’s approval.
Fraser said the buyback is not tied to near-term operational cash flow, adding that the company aims to execute it consistently and “outperform the average price.”
Fraser said Gruyere, Agnew and Tarkwa had softer starts to the year, but all three showed improvement toward the end of the quarter.
Gruyere was affected by heavy rainfall and equipment and operator availability.
Agnew was affected by seismic events in the Kath ore body early in the quarter.
Tarkwa processed a higher proportion of lower-grade stockpiles because unplanned downtime in the operating fleet reduced delivery of primary ore to the plant.
In response to a question from René Hochreiter of Noah Capital Markets, Fraser said Gold Fields had not made a deliberate decision to lower cut-off grades in response to higher gold prices. He and Chief Operating Officer Francois Swanepoel said lower grades at some operations were mainly due to additional stockpile feed and changes in the ratio of open-pit to underground material.
At Salares Norte, Swanepoel said gold recoveries are sustainable at current levels and could improve by about two percentage points by the end of the third quarter. He said silver recoveries are running about 10% above feasibility-study estimates and are expected to remain sustainable, supporting a trend toward the upper end of guidance for the asset.
Fraser said the Windfall project remains on track for first gold in the first half of 2029 under the base plan. During the quarter, Gold Fields reached an in-principle agreement with the Cree Nation on an impact benefit agreement and expects to sign it in the coming weeks.
The company also held public hearings at the end of April as the final step in the environmental impact assessment process before final reports and permitting. Fraser said no material issues emerged from the hearings that would affect the impact benefit agreement or environmental assessment.
Gold Fields expects to provide a more detailed update with its half-year results, including capital, operating cost, reserve and schedule information. Fraser said the company is still reviewing capital estimates and labor productivity assumptions, particularly given tight labor markets in Canada.
He said receiving permits by July is important to avoid schedule pressure on earthworks and civil works. If permits are not received by then, the project could face a delay of about six months, though Fraser said the company believes remaining on the base-case schedule is more likely than not.
Fraser said discussions with the government of Ghana continue over the Tarkwa lease extension, which Gold Fields applied for in November 2025 and which relates to leases due to expire in 2027.
He said the government is seeking a broader negotiation around the sharing of value from the asset over time, including fiscal terms. Fraser said Ghana is already “on the outlier side on global competitiveness,” with more than 50% of Tarkwa cash flows going to the government.
He also said Ghana’s general preference appears to be that standalone stability agreements should not remain part of the long-term landscape, though Gold Fields believes some elements should be considered as part of the lease terms.
Fraser addressed contractor disputes involving Tarkwa and Damang, saying combined claims total about $740 million. He said Gold Fields does not believe there is a substantive basis for the claims and is comfortable defending its position through arbitration if required. He added that the dispute could take up to two years to resolve but is not expected to affect productivity or the working relationship with the contractor.
Gold Fields is also progressing internal portfolio options, including material-handling infrastructure at St. Ives and Granny Smith, stripping at the Agua Amarga pit at Salares Norte, investment south of the Wrench Fault at South Deep, additional renewable energy projects, the greater Invincible complex at St. Ives and the Golden Highway project at Gruyere.
At South Deep, Fraser said the south of the Wrench Fault area is important for adding flexibility and production over time. He described 380,000 ounces as an intermediate production target in the company’s strategic plan and said higher volumes could help dilute the mine’s high fixed costs.
Fraser said Gold Fields’ greenfields portfolio included 21 active projects at the end of the quarter, with work advancing in Eastern Australia, Chile, Peru, Canada and Suriname. The company increased its equity stake in Founders Metals to about 12.5%, which Fraser described as a selective investment in a “high-quality district scale opportunity” in Suriname.
Fraser closed the call by saying Gold Fields remains focused on “safe, reliable, cost-effective operations,” with Windfall execution and the Tarkwa lease extension among the company’s key portfolio priorities for the year.
Gold Fields (NYSE: GFI) is a Johannesburg‑based gold mining company that operates as an international producer of gold. Listed on multiple exchanges and traded in the United States via American Depositary Receipts under the ticker GFI, the company focuses on the exploration, development, extraction and processing of gold-bearing ore and the sale of refined gold products. Its operations span several regions, serving global bullion markets and supplying gold for both investment and industrial uses.
The company's core activities include mine development and underground and open‑pit mining, ore treatment and refining, and ongoing exploration to replace reserves.
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The article "Gold Fields Q1 Earnings Call Highlights" was originally published by MarketBeat.
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