INVESTORS AND MEDIA 
In the news
An independent valuation report estimates the value of the Yamana Gold assets, which Gold Fields is looking to acquire, at between $6.82 billion and $8.02 billion (R124 billion and R146 billion), which at the upper end is almost a fifth higher than a purchase offer valued at $6.7 billion.
The report, prepared by the Canadian Imperial Bank of Commerce (CIBC), assessed Yamana's five operating assets and two development assets in Canada, Chile, Brazil and Argentina, and comes as shareholders of both firms prepare to vote on the offer next month.
Some shareholders have expressed concern that Gold Fields' proposed acquisition of Yamana is too expensive, too dilutive of Gold Fields shares, and will negatively impact returns for existing shareholders. Under the deal, Gold Fields has offered 0.6 of one of its shares for each Yamana share.
Gold Fields, in a circular released on Friday, said the report was "generally consistent" with the company's internal analysis developed over the course of its extensive due diligence exercise. In estimating a value range for each of the mineral properties in question, CIBC reviewed and relied upon, technical reports and current life of mine plans prepared and provided to it by the company.
Although the report sets out a valuation for each of the mineral properties of Yamana, on a standalone basis, "Gold Fields interprets the valuation report to conclude that the value of the transaction consideration is well supported by the intrinsic value of Yamana's assets", the JSE-listed miner said.
Gold Fields however noted that the scope of the valuation report is limited compared to its own assessment of Yamana.
Amongst these limitations, Gold Fields noted, is that the valuation analysis does not contemplate any potential cost or operational synergies that are expected to be realised by Gold Fields, nor the potential for Gold Fields to realise enhanced value from any of the Yamana assets through leveraging its core competencies.
Gold Fields said the transaction grows both the value and quality of the Gold Fields portfolio and enables the company to proactively address industry-wide longer-term production and reserve replacement challenges.
"The highly complementary fit between Yamana's portfolio of operating assets and its extensive pipeline of future growth projects and Gold Fields' technical and financial capabilities, gives Gold Fields strong conviction in its ability to deliver superior sustainable value from Yamana's assets in excess of the value of the Transaction Consideration," the group said.
In morning trade on Monday shares of Gold Fields were up 0.65% to R145.74, having lost almost 15% so far in 2022.
