Our operating environment

Of all the external factors impacting the Group’s performance, the most critical is the gold price. The performance of bullion has been beneficial to Gold Fields over the past few years – rising steadily since 2015, but accelerating markedly since 2019 and, particularly, over the past 18 months.

The gold price provided a strong tailwind to our financial performance. The average gold price received during 2024 improved to US$2,418/oz – a 25% increase from US$1,942/oz in 2023, which was a marked rise on the average price of US$1,785/oz in 2022.

The gold price ended 2024 at just over US$2,625/oz, a record high year-end close and a 25.5% return for the year. Since then, it experienced further growth and, in March 2025, hit a record high of over US$3,000/oz.

Currency movements further boosted results from our Australian and South African mines. The Australian Dollar and South African Rand remained fairly stable against the US Dollar during 2024, allowing our Australian mines and South Deep to realise the benefit of the higher US Dollar gold price. The Australian Dollar remained flat at A$1/US$0.66 during 2024, while the South African Rand strengthened by 1% to average R18.33/US$1.

The WGC, of which we are a member, provided some guidance on the demand and supply factors that favourably impacted the strong performance of bullion during 2024:

• Annual gold demand of 4,974t was 1% above 2023. Investment demand reached a four-year high of 1,180t, a 25% increase from 2023
• Central bank buying maintained a strong pace. Annual net purchases exceeded 1,000t for the third consecutive year
• Holdings in global gold exchange traded funds remained stable in 2024 after four years of successive declines
• Amid the high gold price, annual jewellery consumption dropped 11% to 1,877t
• Annual mine production remained stable at 3,661t in 2024, while recycling responded to high gold prices, rising 11% to 1,370t. Total gold supply was 1% higher year-on-year, increasing to 4,975t in 2024

Healthy demand from investors also underpinned these trends, with main supporting drivers including a more volatile US economy, continued economic weakness in China and, particularly, ongoing global geopolitical tensions. The Russia-Ukraine war and tensions in the Middle East centred around the Israel-Gaza conflict raised gold’s status as a safe-haven asset.

The WGC indicated that, for 2025, central banks and exchange traded funds investors were likely to drive demand for the metal, with economic uncertainty supporting gold’s role as a risk hedge. On the flip side, the WGC indicated high prices will continue to place pressure on jewellery demand.

Elevated geopolitical risks amid the new political approach taken by the US administration are set to strongly drive investment demand during 2025. Furthermore, greater uncertainty around the prospects of the US economy during 2025, and the consequent weakening of the US Dollar, should also prove a boon to the gold price.