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Financial performance

Capital allocation and debt management

Capital allocation is a key element of Gold Fields’ strategic decision-making process. During 2024, we refined our Capital Allocation Framework to guide how capital is deployed and ensure the most attractive return on this capital.

After satisfying the above capital allocation priorities, discretionary growth investments need to compete with additional returns to shareholders. Discretionary growth investments could include exploration, extending the life of existing assets, organic growth opportunities and inorganic M&A opportunities.

Despite challenging operating conditions, Gold Fields is making good progress in advancing all of our capital allocation priorities.

During 2024, net debt increased by US$1,062m, largely driven by the US$1,450m payment for acquiring Osisko Mining in October. This resulted in a higher net debt:adjusted EBITDA ratio of 0.73x at end-December 2024, which is comfortably below our target of 1.0x through the cycle. This compares with net debt of US$1,024m and a net debt:adjusted EBITDA ratio of 0.42x at end-December 2023. Excluding lease liabilities, core net debt amounted to US$1,635m at the end of 2024.

Throughout the year, Gold Fields maintained the capex levels we believe are essential to ensure safe and reliable production and enhance the longevity of our portfolio. Group capex amounted to US$1,183m in 2024 compared with US$1,055m in 2023, comprising sustaining capex of US$849m (2023: US$692m) and growth capex of US$334m (2023: US$363m).

The strong operational recovery during H2 2024, coupled with the gold price tailwinds, translated into a strong financial performance, enabling Gold Fields to declare a final dividend of R7.00 per share. This brought the total 2024 dividend to R10.00 per share (2023: R7.20 per share), equating to a 40% payout of normalised earnings and a dividend yield of 3.58%. It also represents 80% of FCF generated during 2024 and is a record dividend for the Group.

Looking ahead, our 2025 capital allocation priorities remain unchanged and will again be informed by our strategy to improve the quality of our asset base and extend the LOM of our portfolio while balancing returns to shareholders. Aligned with our priorities, we have budgeted for total capital of US$1,490m – US$1,550m for 2025.

Salares Norte production of between 325koz-eq – 375koz-eq at AISC of US$975/oz-eq – US$1,125/oz-eq, is expected to provide a tailwind to earnings in 2025 (based on our metal price assumptions), which will enable Gold Fields to pay another attractive dividend in the fiscal year.

Liquidity profile

Gold Fields actively manages the liquidity and maturity profile of the Group’s debt. Upon maturity in May 2024, we repaid our US$500m bond using our existing RCF.
In addition to our remaining US$500m bond, which matures in 2029, we put in place a US$750m multi-currency bridge facility to fund part of the Osisko Mining acquisition in October 2024. This facility has a 12-month maturity, extendable by up to six months, with a competitive interest rate that increases through the maturity of the facility.

Our RCF, which was refinanced in June 2023, has a principal loan amount of US$1.2bn, with an option to increase the facility by up to US$400m and a maturity of five years. In 2024, the first of two one-year extension options on this facility was exercised. It is linked to the achievement of three of the Company’s key sustainability priorities: gender diversity, water stewardship and decarbonisation.

The margin on the facility is subject to rating and sustainability margin adjustments. Gold Fields will benefit from a lower margin depending on the fulfilment of certain sustainability-linked KPIs under the facility agreement. Conversely, Gold Fields will pay a premium on its margin if the KPIs are not met.

Similar sustainability criteria apply to the five-year A$500m syndicated credit facility (with a A$100m accordion option) the Company entered into with a consortium of 10 Australian and international banks in October 2023.

For 2024, we achieved the following performance under the three KPIs linked to the facilities¹:

• 86kt CO₂e^RA cumulative annual carbon abatement of Scope 1 and 2 emissions through renewable projects since inception against a 2022 baseline and a 2024 target of 100kt CO₂e²
• 74%^RA water recycled/reused against a target of 75%
• 25%^RA women employees as a percentage of total employees in our workforce, against a target of 24%

Performance against the KPIs is independently verified by PwC Inc.^RA. Gold Fields is currently assessing our options to refinance the US$750m bridge facility.

Hedging

Given the volatility of the gold price, Gold Fields does not enter long-term systematic hedges, but instead regularly evaluates the Company’s position and outlook to determine whether short-term hedging is appropriate. Our policy allows for hedging to protect cash-flows:

• During times of significant capex
• For specific debt servicing requirements
• To safeguard the viability of higher-cost operations

We did not have any revenue hedges (gold and copper price), cost input hedges or currency hedges in place during 2024 and remain in an unhedged position.

The 2025 financial year will again see significant investment into the Group’s assets, with C$403m (US$285m) budgeted for the Windfall project and US$110m budgeted for the St Ives renewable power project.

1	The calculation methodology used was the same as the calculation methodology applied in the 2023 and prior IARs and Climate Change reports
2	Calculated in accordance with the accounting and reporting standards as published by the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard