Gold Fields: Ghana political risk: Negotiations ongoing

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Gold Fields: Ghana political risk: Negotiations ongoing

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Gold Fields

Ghana political risk: Negotiations ongoing

Maintain Rating: BUY | PO: 1,010 ZAR | Price: 555.81 ZAR

Risk of expropriation, but still room to negotiate 22 June 2026

Media reports suggest the government of Ghana is considering cancelling Gold Fields’ Equity

mine lease at Tarkwa (due to expire April 2027) but is also weighing an extension. The

decision will depend on GFI’s proposal for further local employment, infrastructure, and ReinhardtResearch Analystvan der Walt >>

environmental rehab contribution (according to the article). Given that negotiations MLI (UK)

between Ghana and GFI seem to be ongoing, we believe there is still room for GFI to +44reinhardt.vanderwalt@bofa.com20 7995 9270

concede on ownership stake or other initiatives in exchange for lease extension (i.e. we Jason Fairclough >>

do not view this media report as a definitive outcome). On our estimates, Tarkwa makes Research Analyst

MLI (UK)

up c. 14% of GFI NAV, 16% of FY27 production. While there remains a binary risk around jason.fairclough@bofa.com

expropriation, we believe recent share price weakness (GFI closed -13% on the 19th June) Paul Kirjanovs >>

prices in the bear case, and we maintain our Buy rating with unchanged PO. Research Analyst

paul.kirjanovs@bofa.com

Tarkwa needs ongoing investment, planning Felicity Robson >>

Tarkwa needs further reinvestment and planning/ design work in order to maximise the Research Analyst

existing resource. We believe this places GFI in a favourable bargaining position given felicity.robson@bofa.com

their expertise as a global gold miner/ asset developer and their track record with the Michael Widmer

asset.