Summary:
- Gold Fields (GFI, Financial) shares dropped by 4% due to Ghana's government decision impacting the Damang mine.
- Focus is shifting towards projects in Chile and Canada amidst asset sales.
- Analysts predict a potential downside with a mixed "Outperform" rating for the stock.
Gold Fields Faces Challenges with Ghana Operations
Gold Fields Ltd (GFI) experienced a 4% share decline following the announcement of the impending shutdown of its Damang mine located in Ghana. The Ghanaian government's refusal to renew the mine's lease means operations must cease, and the area vacated by April 18. This development is part of Gold Fields' strategic shift, as the company plans to divest smaller assets to concentrate on promising projects in Chile and Canada.
Analyst Predictions and Market Expectations
Analyzing the one-year price targets set by five analysts, the average target price for Gold Fields Ltd (GFI, Financial) is $21.60. This includes a high estimate of $27.00 and a low estimate of $18.00. At this target, there's a projected downside of 9.43% from the current trading price of $23.85. Investors seeking more in-depth forecasting data can visit the Gold Fields Ltd (GFI) Forecast page.
Brokerage Recommendations
In terms of brokerage recommendations, Gold Fields Ltd (GFI, Financial) is rated an average of 2.2 by five brokerage firms, indicating an "Outperform" consensus. This rating uses a scale where 1 represents "Strong Buy" and 5 indicates "Sell," suggesting a generally positive outlook from analysts despite the current challenges.
Understanding GuruFocus Metrics
The estimated GF Value for Gold Fields Ltd (GFI, Financial) is calculated to be $22.18 for the next year. This estimation suggests a downside of 7% from the present price of $23.85. The GF Value metric, a key proprietary measure by GuruFocus, represents the fair trading value of a stock, derived from historical trading multiples, past business growth, and future performance predictions of the business. Detailed data regarding these estimates are accessible on the Gold Fields Ltd (GFI) Summary page.
