Gold Fields (GFI) Stock Drops 6.6% Amid Silver Price Volatility
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Stock Volatility: Gold Fields' stock fell 6.6% to $43.26 by 12:15 p.m. ET on Monday, reflecting a sharp market reaction as investors took profits following silver's drop from $80 to $70.25 per ounce, indicating a significant shift in market sentiment.
- Silver Price Fluctuations: After reaching an all-time high of $80 per ounce last night, silver's dramatic decline this morning has placed additional pressure on Gold Fields, undermining investor confidence in future price stability.
- Earnings Outlook: Despite the current stock decline, analysts forecast Gold Fields will achieve over 50% annual earnings growth over the next five years, suggesting that the current trailing P/E ratio of 21 remains attractive, potentially drawing interest from long-term investors.
- Cash Flow Status: While Gold Fields' free cash flow appears somewhat weaker than reported earnings, it is not alarmingly so, and combined with a 1.3% dividend yield, this maintains the stock's appeal in the current market environment.
GFI
$43.34+Infinity%1D
Analyst Views on GFI
Wall Street analysts forecast GFI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GFI is 49.57 USD with a low forecast of 39.00 USD and a high forecast of 64.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
4 Buy
4 Hold
0 Sell
Moderate Buy
Current: 46.560
Low
39.00
Averages
49.57
High
64.00
Current: 46.560
Low
39.00
Averages
49.57
High
64.00
About GFI
Gold Fields Limited is a globally diversified gold producer with approximately nine operating mines in Australia, South Africa, Ghana, Chile and Peru and one project in Canada. The Company is involved in underground and surface gold and surface copper mining and silver and related activities, including exploration, extraction, processing and smelting. It has a total attributable annual gold-equivalent production of over 2.30 million ounces (Moz), gold mineral reserves of 44.6 Moz and gold mineral resources of 30.3 Moz (excluding mineral resources). In Peru, the Company also produces copper. Its economic interest in the South Deep mine in South Africa is 96.43%. It also owns 100% of the St Ives, Agnew, Granny Smith mines and around 50% of the Gruyere gold mine in Australia, and 90.0% of the Tarkwa and Damang mines in Ghana and 45% of the Asanko mine in Ghana. It owns 99.5% of the Cerro Corona mine in Peru. It also has 100% ownership of the Windfall Project in Canada’s Quebec province.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
