01. Gold Fields Limited (NYSE:GFI)
Number of Hedge Fund Holders: 20
Forward P/E Ratio as of September 29: 8.92
Gold Fields Limited (NYSE:GFI) is a leading gold producer with a diversified portfolio of assets spread across Chile, South Africa, Ghana, Canada, Australia, and Peru. Established in 1887 and headquartered in Sandton, South Africa, the company also explores for copper and silver deposits. In the second quarter of 2024, the stock attracted 20 hedge fund holders, up from 18 in the previous quarter, highlighting increased institutional interest.
Gold Fields Limited (NYSE:GFI) exceeded market expectations in Q2 2024 by reporting earnings per share (EPS) of $0.4344 against the forecasted $0.34, showcasing solid operational performance despite facing production challenges. The company’s financial health remains robust, with all its mining operations generating positive adjusted free cash flow despite a 20% year-over-year decline in overall production. Gold Fields Limited (NYSE:GFI) achieved a strong $320 million in adjusted free cash flow from operations, driven by higher gold prices that compensated for production setbacks.
The company’s financial strength is further underpinned by its diversified asset base. Its Australian mines contributed nearly half of the group’s production and cash flow in the first half of 2024, while operations in Ghana accounted for about a third. Additionally, the announcement of the acquisition of Osisko Mining’s Windfall project and ongoing discussions for the approval of the Tarkwa/Iduapriem joint venture in Ghana are expected to bolster Gold Fields Limited (NYSE:GFI) production capabilities and future growth prospects.
Gold Fields Limited (NYSE:GFI) also remains committed to shareholder returns, paying a dividend of ZAR0.30 per share, representing 40% of its normalized earnings for the half-year. While production guidance for 2024 has been revised down to between 2.05 million and 2.15 million ounces due to operational challenges at its South Deep and Cerro Corona mines, the company anticipates a stronger performance in the second half of 2024, with an expected output of over 1.2 million ounces. With a diversified portfolio, solid cash flow generation, and a strong dividend yield, Gold Fields Limited (NYSE:GFI) presents an attractive investment opportunity for value-focused investors looking to gain exposure to the gold mining sector.
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