Earnings call transcript: Gold Fields posts strong H1 2026 cash flow despite EPS miss

Gold Fields reported stronger first-half 2026 adjusted earnings and cash flow compared to the same period last year, despite missing Wall Street earnings per share (EPS) expectations. The gold miner's EPS came in at $0.95, below the forecasted $1.06, equating to a 10.38% miss. Revenue for the half stood at $4.51 billion, generating a P/E ratio of 12.07, indicating a low earnings multiple.

Gold Fields' attributable production rose 12% year-over-year to 1.267 million ounces. Sales volumes increased 18% from the previous period, driven by a higher average realized gold price of $4,678 an ounce, which climbed 51% from the prior period. Adjusted free cash flow reached $2.225 billion, more than doubling the prior period, and the company's free cash flow yield reached 11%.

The company returned substantial cash to shareholders through dividends and buybacks while cutting net debt. H1 2026 was described as a strong six months, supported by higher production, a robust gold price, and disciplined capital allocation. Net debt fell to $437 million from $774 million a year earlier, with net debt to EBITDA declining to 0.06 times.

Management highlighted that Salares Norte, the standout asset, saw output up 173% and full-year guidance raised. The company expects to finish 2026 toward the upper end of its production guidance, all-in sustaining costs should land toward the lower end, and anticipates environmental approval for its Windfall project in the second half of 2026. The executives stressed the company's commitment to safety and improvement programs, and its strategy to balance performance improvements with shareholder returns.