RBC Capital Analyst Boosts Gold Fields to Buy with $32 Price Target

Gold Fields (GFI) has been upgraded to a Buy rating by RBC Capital analyst Josh Wolfson with a price target of $32.00. The current analyst consensus is a Strong Buy with an average price target of $30.08, implying a 0.13% upside from current levels. TipRanks analyst rating of 5-star with an average return of 13.8% and a 68.71% success rate.

Gold Fields Limited (NYSE: GFI), a leading global gold producer, has received a significant boost with RBC Capital analyst Josh Wolfson upgrading the company's rating to a Buy with a price target of $32.00. This move follows a trend of positive analyst sentiment, with the current consensus being a Strong Buy, averaging at $30.08. The upgrade implies a 0.13% upside from the current levels, reflecting the market's bullish outlook on Gold Fields' prospects.

The positive analyst ratings come amidst Gold Fields' ongoing strategic initiatives. The company recently announced that the Supreme Court of Western Australia has approved the convening of a scheme meeting and the release of a scheme booklet regarding the proposed acquisition of Gold Road Resources Ltd by Gruyere Holdings Pty Ltd, a subsidiary of Gold Fields Limited. This acquisition is expected to significantly impact Gold Road's operations and market positioning, aligning the company more closely with Gold Fields' strategic goals [1].

The acquisition is part of Gold Fields' broader strategy to grow value and cashflow per share over volume, as outlined by CEO Mike Fraser. Recent acquisitions, including that of Osisko Mining and Gold Road Resources, aim to drive down costs and extend the average asset life, delivering predictable performance and maintaining a stable production size of 2-3 million ounces annually [1].

Gold Fields' first-half gold production rose by 24%, reaching 1.136 million ounces, from 918,000 ounces previously. The production ramp-up at the Salaries Norte mine in Chile, which was impacted by a harsh winter last year, has been smoother this year, resulting in a 46% jump in output from the new mine. The company expects to produce between 2.25 and 2.45 million ounces of gold during the full year [1].

The acquisition of Gold Road Resources also follows a period of impressive financial results reported by Wheaton Precious Metals Corp (NYSE: WPM), which saw record quarterly financial results with revenue soaring 68% year-over-year to $503 million, driven by higher metal prices and increased production volumes. The company's net earnings reached $292 million, representing a 139% increase compared to Q2 2024. Adjusted net earnings reached $286 million, up 91% year-over-year, while operating cash flow grew 77% to $415 million. The company declared a quarterly dividend of $0.165 per common share, marking a 6.5% increase compared to the third quarterly dividend of 2024 [2].

Both Gold Fields and Wheaton Precious Metals are benefiting from the current bullish precious metals market, focusing on cost management and operational efficiency to drive value and cashflow per share.

The upcoming vote on the acquisition of Gold Road Resources by Gold Fields is set to take place on September 22, with shareholders expected to vote on the deal. If approved, this acquisition would give Gold Fields full ownership of the Gruyere mine in Western Australia, where it already holds a 50% stake and serves as the operator. The joint venture produced 287,000 oz. of gold in 2024, accounting for roughly 11% of Gold Fields’ free cash flow from extraction last year [3].

The acquisition requires approval from 75% of Gold Road shareholders. If successful, it will be the third ASX 200 gold company to be fully owned by Gold Fields.

References:
[1] https://www.ainvest.com/news/gold-road-resources-announces-court-approved-scheme-meeting-acquisition-gold-fields-2508/
[2] https://za.investing.com/news/company-news/wheaton-precious-metals-q2-2025-slides-record-revenue-amid-gold-price-surge-93CH-3828626
[3] https://www.northernminer.com/news/gold-fields-2-4b-gold-road-takeover-vote-nears/1003881601/