Gold Fields in active discussions to acquire Gold Road Resources

Gold Fields is in “active discussions” with Gold Road Resources despite an earlier rejection of its offer to acquire 100% of the shares of the Australia mining group by way of a scheme of arrangement, the Johannesburg-based global miner confirmed in a statement Friday.

The JSE and New York-listed Gold Fields has mines in South Africa, Ghana, Australia, Peru, Chile and Canada. Western Australia mining company Gold Road primarily owns 50% of the Gruyere Gold Mine in partnership with Gold Fields.

According to Mining Weekly, in March, Gold Road had rejected an initial A$3.3 billion (R39.2bn) takeover approach from Gold Fields, saying the “extremely disappointing” offer had undervalued the company. Gold Road’s shares had since climbed by more than 20%.

Gold mining company share prices tend to follow the trends of the gold prices, and the spot price of gold has increased substantially by over 60% to $3,256.3 per ounce on Friday, from $2,025 per ounce on March 3, due, among other factors, to market uncertainties created by the ongoing geopolitical uncertainties.

Gold Fields said Friday it noted recent media speculation and the subsequent trading halt announcement made by Gold Road, in relation to a potential change of control transaction. Gold Road had requested a trading halt on the Australian Stock Exchange on Friday.

“Gold Fields confirms that it is in active discussions with Gold Road regarding the proposed transaction,” the company said, adding that at this stage, there could be no certainty that the engagement would result in a transaction being successfully concluded.

On Friday afternoon, Gold Fields’ share price had traded 3.1% lower to R405.97 on the JSE, at a time when the JSE Precious Metals and Mining Index was down 1.99%, and while the prices of Gold Fields’ South African peers, DRD Gold and Harmony, had declined by 3.56% and 3.23%, respectively.

Gold Fields’ economic interest in the South Deep mine in South Africa is 96.43%. It also owns 100% of the St Ives, Agnew, and Granny Smith mines in Australia, 90% of the Tarkwa and Damang mines in Ghana, 99.5% of the Cerro Corona mine in Peru, 100% of the Salares Norte mine in Chile, and 100% of the Windfall Project in Canada.

In October 2024, Gold Fields completed a transaction to acquire Osisko Mining, paying C$2.02bn (R26.94bn) net of cash received. The transaction consolidates 100% ownership of the Windfall Project and its entire exploration district in Québec, Canada, the integrated annual report released in March showed.

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