Gold Fields to hand over Damang mine to government in April 2026; records 163% growth in profit in half-year 2025

Gold Fields Ghana will hand over the Damang mine to the government in April 2026, following the expiration of the one-year lease extension.

The Group Chief Executive, Mike Fraser, disclosed this today, August 22, 2025, on a conference call with investors and Journalists on their half-year financial performance.

Fraser said that “This is part of an agreement that we've reached with the Government of Ghana after a deal was reached to extend the lease by 12 months and smooth transition to Ghanaian ownership”.

He also revealed that Gold Fields, under the deal, “will continue to manage the mine, but will, however work with a committee looking at how the mining life of Daming can be extended”.

This arrangement was to ensure proper and safe transition of the mine to a new owner,” the Chief Executive of Gold Fields added.

Asked whether Gold Fields was interested in acquiring the Damang mine, he noted that this is not on the table, because “we had a plan to move the mine to a new owner, because of the current status of its asset quality and a significant amount of value in the Damang mine.”

According to him, Gold Fields is committed to working with the Ghana Government to ensure a successful transition of the asset in 2026.

The Chief Executive of Goldfields, however, rejected assertions that it agreed to let go of Damang, so that the government would extend the mining lease for Tarkwa when the current lease expires.

Tarkwa Operations

On the Tarkwa operations and expected lease, he revealed that the government has asked his outfit to come to the table, adding, "We are committed to that process to ensure that it is realised".

We have done a lot of work to ensure that the life span of the mine is extended for a long time, “Mr. Fraser added.

The Chief Executive of Gold Fields also expressed commitment to increasing its investment in the Tarkwa mine, as part of efforts to improve returns for shareholders.

Gold Fields in May 2025 , announced that it has agreed to pause the deal with AngloGold Ashanti, relating to the  Tarkwa/Iduapriem joint venture, to allow focus on its respective operations on a standalone basis.

Goldfields said, “We are now focused on optimising and extending the life of Tarkwa on a stand-alone basis.”

We don’t know who will take over the Damang Mine, but that is in the domian of the Ghana Government”, he added.

The CEO of Gold Fields also assured that "we have operated in Ghana over the past 30 years and we look forward to doing more than 30 years, and we are surely committed to that”.

Background 

Parliament in July 2025 approved one-year transitional mining lease agreement between the Government of Ghana and Abosso Goldfields Limited for continued gold mining operations at Damang, located in the Wassa West District of the Western Region.

The lease follows the expiration of the previous agreement on April 18, 2025. The new lease is scheduled to run until April 2026. It is explicitly non-renewable and prohibits any extension, transfer, mortgage, or related transactions beyond the stated expiry date.

Government Relations

The Group Chief Executive of Gold Fields also revealed that his outfit's relations with the government has improved greatly, following some initial challenges.

Gold Fields is therefore looking forward to growing its operations in Ghana.

He also pointed out that Goldfields is aware of some proposed new mining regulations in Ghana with respect to ownership.

However, for us, all our investments remain intact, he added.

He rejected arguments that it's only Goldfields that is benefiting from high gold prices. "If you check our financials, you will realise that our tax payments have gone and that is clear that everyone is benefiting".

Financial Performance

Gold Fields, according to its 2025 half-year report,  delivered a stronger performance compared to the same period in 2024, with the momentum from the second half of last year continuing into an improved half-year performance.

Most importantly, its safety improvement actions have resulted in improved outcomes with no fatalities reported at any of our operations in the first half of 2025.

The group attributable production rose 24% to 1,136koz and remains on track to meet guidance for the year. The mine is on track to achieve commercial production levels during quarter three 2025 and steady state throughput in quarter 4 2025 as planned.

The improved operational performance, coupled with the higher gold price resulted in a strong financial performance in the first half of 2025, with the group generating adjusted free cash flow of US$952 million compared to an outflow of US$58 million in the first half of 2024.

Revenue increased by 64% from US$2.24 billion for the six months ending 30 June 2024 to US$3.478 billion for the six months ending 30 June 2025. This was due to the 17% higher gold-equivalent ounces sold and the 40% higher gold price received.

Gold-equivalent ounces sold increased by 17% from 0.961Moz to 1.126Moz.

On the other hand, profit for the period increased by 163% from US$402 million for the six months ended 30 June 2024 to US$1.056 billion for the six months ended 30 June 2025.