Gold Fields has warned that uncertainty over the renewal of its mining leases in Ghana is weighing on the company’s valuation, as the South African miner reported a sharp rise in first-half profit driven by higher gold prices and increased production.
The company’s Tarkwa mine leases are due to expire in April 2027. Gold Fields said it has yet to receive formal responses to its application for renewal, submitted in November 2025.
In its half-year results released on Tuesday, August 25, the company said there remains uncertainty over the timing, outcome, and terms of any agreement to renew the Tarkwa leases.
Gold Fields CEO Mike Fraser said the uncertainty was affecting how investors value the company, with its shares trading at a discount to peers.
“We think that the market has largely discounted that asset now in our portfolio,” Fraser said.
He added that an early resolution would be in the interest of all parties, noting that several factors were influencing the decision-making process.
Gold Fields said it was considering all available options, including exercising its legal rights under the existing leases.
Fraser, however, described legal action as the company’s “last option”, saying the move would only be pursued if necessary to protect shareholder value.
Officials at Ghana’s Ministry of Lands and Natural Resources and the Minerals Commission did not immediately respond to requests for comment.
In May, Minerals Commission CEO Isaac Andrews Tandoh dismissed suggestions that the government was deliberately delaying the renewal process. He said officials had held meetings with Gold Fields and ruled out an automatic extension of the leases.
According to Mr Tandoh, Gold Fields must first present its development plans to the Commission’s technical committee and relevant ministers before a decision can be reached.
Tarkwa was Gold Fields’ second-largest gold-producing mine in the first half of 2026, behind its Salares Norte operation in Chile.
The Ghanaian mine produced 192,000 ounces of gold during the six months to June 30, representing about 15% of the group’s total production.
Gold Fields reported headline earnings per share of $2.08 for the first half of 2026, compared with $1.15 during the same period in 2025.
The company also announced an interim dividend of 16.25 rand ($1.01) per share, representing a 132% increase over last year’s interim payout.
Group gold production rose 12% year-on-year to 1.267 million ounces, supported by higher output across its operations.
Gold Fields maintained its full-year production guidance of between 2.4 million and 2.6 million ounces.
The company said stronger gold prices, supported by safe-haven demand and a weaker US dollar, had also contributed to the improved financial performance.
Source: Reuters
