• Gold Fields paid $98.8 million in gold royalties to Ghana in 2025, up 26% year on year.

• The company applied the maximum 5% royalty rate as gold prices remained above $2,300 per ounce.

• Ghana plans to introduce a new royalty scale of up to 12% as gold prices trade above $4,500 per ounce.

In its financial report published on February 19, Gold Fields said it paid $98.8 million in gold royalties to Ghana, where it operates Tarkwa and Damang. The payment marked a 26% year-on-year increase from the $77.9 million reported for the 2024 financial year.

Mining companies pay royalties as a share of revenue generated by a mine to the host state. Ghana applies a variable royalty rate ranging from 3% to 5%, depending on the gold price. The regime applies the maximum 5% rate when gold trades above $2,300 per ounce.

Gold Fields said it applied the ceiling rate for all its payments in 2025 as prices remained sustainably above the threshold. By contrast, the company calculated 2024 royalties at rates ranging between 4.1% and 5%, reflecting slightly different market conditions.

The company attributed the higher royalty payments to the gold bull market. The payments excluded dividends payable to Ghana under its equity stakes in the mines and excluded other taxes such as corporate income tax. Gold prices currently trade around $5,100 per ounce, and analysts including JP Morgan expect prices to exceed $6,000 per ounce by the end of 2026. Ghana therefore positions itself to capture greater revenue from royalties as prices rise.

A New Royalty Scale

The increase in royalties paid by Gold Fields highlights the broader gains African gold producers capture during a bull market. Mali and Burkina Faso have revised their regulatory frameworks to maximize state revenues under similar market conditions. Ghana also plans to align with this approach by introducing a new royalty scale that reflects current gold price levels.

Authorities expect to adopt the new scale later this month. The revised regime will start at a 5% rate and rise to 12% if gold prices exceed $4,500 per ounce, a threshold that the market has already crossed. While Newmont, which also operates in Ghana, has warned about potential profitability impacts from such an increase, Gold Fields has not yet clarified its position.

Meanwhile, Gold Fields expects Tarkwa production to remain relatively stable. However, the company forecasts a sharp decline at Damang in 2026, with output projected at 25,000 ounces compared with 97,500 ounces delivered last year. The company links the drop to the progressive depletion of reserves at the site and to the upcoming expiration of the mining lease in April.

The company has not yet secured a permit extension agreement with the state. The absence of an agreement could reduce Gold Fields’ Ghanaian production. Analysts will assess the combined impact of production trends, gold prices and regulatory changes on the company’s commercial revenues in Ghana and on royalty payments for the current financial year.

Aurel Sèdjro Houenou