INVESTORS AND MEDIA 
In the news
GOLD Fields said on Monday it remained “in a strong financial position” following the completion of the $1.39bn acquisition of Osisko Mining.
The Johannesburg-headquartered miner moved for the balance of Osisko shares in August – it already had a 50% stake following a $600m deal in 2023 – giving it 100% control of Osisko’s flagship Windfall project in Canada’s Québec.
The transaction drew criticism from some quarters, however, as Gold Fields paid a 55% premium for the second tranche of Osisko shares.
Commenting following the completion of all outstanding regulatory deal hurdles, Gold Fields said its financial position was secure. It used cash on hand, undrawn debt facilities, and a $750m liquidity facility put in place in October to pay for the stake.
It also expected the strength of its balance sheet to improve as it generated “strong cash flow” growth this year and 2025 “as production volumes increase at several of its operations”.
Gold Fields has had a tough year operationally with shortfalls in guided production at its Salares Norte mine in Chile and at South Deep in South Africa. The group consequently cut its full-year production forecast by as much as 220,000 ounces to between 2.2 million and 2.3 million oz — about 10%.
Building in growth potential will therefore come as a much-needed tonic. “Deposits of the scale and quality of Windfall with highly prospective exploration camps are rare, particularly in a world-class jurisdiction like Québec, Canada,” said Mike Fraser, CEO of Gold Fields. Windfall is expected to produce approximately 300,000 oz of gold at an all-in sustaining cost of $758/oz.
The transaction comes about almost two years to the day after Gold Fields was outbid for Yamana Gold, a company that has assets in South America and Canada. Gold Fields then bid about $6.7bn (C$9bn) for Yamana partly to gain entry to Canada’s mining sector.
The premium Gold Fields paid for Osisko was primarily to secure a high quality project but also to make sure it wasn’t outbid for a growth asset in a strongly supportive gold market.
The gold price is forecast by several banks to piece the $2,800/oz barrier this year before heading through $3,000/oz in 2025.
“Interest in gold as an alternative investment in markets such as China as well as growing incomes and lower import duties in India should help underpin physical demand,” said Joni Teves, strategist for Swiss banking group UBS.
“We expect official sector gold purchases and consumer demand to provide a sufficient foundation for the gold market to extend its rally,” said Teves.
Gold was last trading at $2,742/oz representing a year-to-date improvement of 33%. Shares in Gold Fields are 15.7% higher over the same period.
GOLD Fields said on Monday it remained “in a strong financial position” following the completion of the $1.39bn acquisition of Osisko Mining.
The Johannesburg-headquartered miner moved for the balance of Osisko shares in August – it already had a 50% stake following a $600m deal in 2023 – giving it 100% control of Osisko’s flagship Windfall project in Canada’s Québec.
The transaction drew criticism from some quarters, however, as Gold Fields paid a 55% premium for the second tranche of Osisko shares.
Commenting following the completion of all outstanding regulatory deal hurdles, Gold Fields said its financial position was secure. It used cash on hand, undrawn debt facilities, and a $750m liquidity facility put in place in October to pay for the stake.
It also expected the strength of its balance sheet to improve as it generated “strong cash flow” growth this year and 2025 “as production volumes increase at several of its operations”.
Gold Fields has had a tough year operationally with shortfalls in guided production at its Salares Norte mine in Chile and at South Deep in South Africa. The group consequently cut its full-year production forecast by as much as 220,000 ounces to between 2.2 million and 2.3 million oz — about 10%.
Building in growth potential will therefore come as a much-needed tonic. “Deposits of the scale and quality of Windfall with highly prospective exploration camps are rare, particularly in a world-class jurisdiction like Québec, Canada,” said Mike Fraser, CEO of Gold Fields. Windfall is expected to produce approximately 300,000 oz of gold at an all-in sustaining cost of $758/oz.
The transaction comes about almost two years to the day after Gold Fields was outbid for Yamana Gold, a company that has assets in South America and Canada. Gold Fields then bid about $6.7bn (C$9bn) for Yamana partly to gain entry to Canada’s mining sector.
The premium Gold Fields paid for Osisko was primarily to secure a high quality project but also to make sure it wasn’t outbid for a growth asset in a strongly supportive gold market.
The gold price is forecast by several banks to piece the $2,800/oz barrier this year before heading through $3,000/oz in 2025.
“Interest in gold as an alternative investment in markets such as China as well as growing incomes and lower import duties in India should help underpin physical demand,” said Joni Teves, strategist for Swiss banking group UBS.
“We expect official sector gold purchases and consumer demand to provide a sufficient foundation for the gold market to extend its rally,” said Teves.
Gold was last trading at $2,742/oz representing a year-to-date improvement of 33%. Shares in Gold Fields are 15.7% higher over the same period.
