Gold Fields flags Ghana licence risk as half-year profit surges
Uncertainty over the renewal of Gold Fields' mining leases in Ghana is weighing on the company's valuation, its CEO said on Tuesday, as the South African miner posted an 81% jump in half-year profit, driven by higher gold prices and output.
Gold Fields, the South African mining company, announced a significant increase in its half-year profit, with CEO Mike Fraser attributing the surge to higher gold prices and output. However, the company's valuation is being affected by uncertainty surrounding the renewal of its mining leases in Ghana, where its Tarkwa mine is located.
The leases expire in April 2027, and Gold Fields has not yet received a formal response to its renewal application submitted in November 2025. CEO Fraser stated that there is uncertainty regarding the timing, outcome, and terms of any negotiation to renew the leases. He emphasized that the market has largely discounted this asset, noting that the company's shares are trading at a discount compared to its peers.
Fraser also mentioned that the company is considering all available options, including exercising its legal rights under the leases, as a last resort to protect value. Officials from Ghana's mines ministry and the Minerals Commission have not yet commented on the matter.
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- Gold Fields flags Ghana licence risk as half-year profit surges myjoyonline.com
