Latest news with #DuncanGibbs
Yahoo
05-05-2025
- Business
- Yahoo
Gold Fields to acquire Gold Road in $2.4bn deal
Mid-tier Australian gold producer Gold Road Resources has entered an agreement with Gruyere Holdings, a wholly owned subsidiary of Gold Fields, to divest 100% of the issued and outstanding share capital for A$3.7bn ($2.4bn). The total cash consideration amounts to A$3.40 per share, suggesting an enterprise value for Gold Road of approximately A$2.6bn. The deal will strengthen Gold Fields' 50% stake in the jointly operated Gruyere mine located in Western Australia. The offer includes a fixed cash consideration of A$2.52 for each Gold Road share and a variable component linked to Gold Road's holding in Northern Star Resources, valued at A$0.88 per share as of 2 May 2025. The deal is contingent on various conditions, including shareholder and court approvals, and is expected to be finalised in October 2025. Gold Road chairman Tim Netscher said: 'The Board has been focused at all times on ensuring that we deliver value and act in the best interests of our shareholders. The Gold Road Directors consider that the value offered by the all-cash Scheme Consideration delivers compelling value for Gold Road shareholders compared to what may otherwise be available if Gold Road continued to operate as a standalone entity. 'This cash proposal accelerates realisation of Gruyere's value and provides certainty for Gold Road shareholders today at an attractive premium to trading levels prior to receipt of the initial Gold Fields proposal.' If the acquisition is successful, Gold Road plans to issue a fully franked special dividend, estimated at A$0.35 per share based on the current franking account balance. The total dividend payable to Gold Road shareholders stands at approximately A$379m. UniSuper, Yarra Capital Management, First Sentier Investors, and Perpetual Asset Management are key shareholders, holding about 7.5% of Gold Road's shares. They have expressed their intention to vote in favour of the scheme. However, they retain the right to sell their shares before the scheme meeting. Gold Road managing director and CEO Duncan Gibbs said: 'The Scheme provides Gold Road shareholders with an opportunity to realise certain value for their Gold Road shares at a compelling premium. This offer price represents a material premium to the undisturbed share price prior to the initial Gold Fields' proposal and a material premium to longer term trading levels.' Additionally, Northern Star Resources completed the acquisition of De Grey Mining by way of a Court-approved Scheme of Arrangement. Northern Star managing director and CEO Stuart Tonkin said: 'The acquisition of De Grey is strongly aligned with Northern Star's strategy to generate superior returns for shareholders. We believe that Hemi will deliver a low-cost, long-life and large-scale gold mine in the tier-1 jurisdiction of Western Australia, further enhancing the quality of our asset portfolio and ability to generate cash earnings. 'The Northern Star team looks forward to integrating Hemi into our portfolio and building strong relationships with the Kariyarra people, other Traditional Owners in the Hemi project area and additional Hemi project stakeholders.' In April 2025, Gold Fields announced a new agreement with Ghana to continue operations at Damang mine. "Gold Fields to acquire Gold Road in $2.4bn deal" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
ABC News
05-05-2025
- Business
- ABC News
Gold Fields increases takeover offer for Gold Road Resources to $3.7b
The head of a Perth-based gold miner that is the target of a $3.7-billion takeover bid expects there will be further consolidation in the sector as prices for the precious metal reach record highs. The ASX-listed Gold Road Resources emerged from a trading halt on Monday to announce that its South African joint-venture partner, Gold Fields, had increased its previous bid of $3.3b by 43 per cent. The companies jointly own the Production at the Gruyere gold mine got underway in 2019. ( Supplied: Gold Road Resources ) Gold Road managing director Duncan Gibbs said the original offer was rejected as "opportunistic" because it did not take the potential for a future underground operation into account. "It was a bit out of the blue because Gold Fields hadn't actually approached us prior to that — and it arrived by email, which we found a bit surprising," he said. "That's all history now because there's been a lot of engagement to get to the outcome we've got now. " It's a good deal for Gold Road and the feedback I've had to date has been very positive. " In the absence of a superior proposal, Gold Road's board has recommended shareholders vote in favour of the takeover at a meeting likely to be held in September. The takeover is also subject to approval by the Foreign Investment Review Board, which is likely to be a formality given Gold Fields already operates three other mines in WA. More deals to be done The new offer comes amid renewed interest in the mergers and acquisitions space as the Australian dollar gold price Australia's biggest gold miner, Northern Star Resources, officially took ownership of the rich Hemi discovery in WA's Pilbara region on Monday after completing its WA gold miner Ramelius Resources is also progressing a takeover of Spartan Resources, its neighbour in the state's Midwest, in a deal worth $2.4b. Mr Gibbs said he expected more consolidation to follow. The processing plant at the Gruyere gold mine has had ongoing operational issues since it was commissioned in 2019. ( Supplied: Gold Road Resources ) "Do I think there's probably going to be more of it? Yes," he said. "Everybody is talking to everybody, which is situation normal. "I think there are points in price cycles which drive a bit more consolidation, but these things appear to go in waves. "The reality is companies are looking to grow all the time. "That can be through bolt-on acquisitions or larger mergers, which we have seen." Australia's next big gold mine Meanwhile, as the dust settles on its De Grey takeover, Northern Star Resources is turning its attention towards building Australia's biggest new gold mine at Hemi. Northern Star managing director Stuart Tonkin said the company would update the Hemi project timelines later this year once there was a clearer picture on the regulatory approvals. Northern Star Resources managing director Stuart Tonkin has described the Hemi project as being "low-cost" and "long-life". ( ABC Goldfields: Jarrod Lucas ) A feasibility study released in September 2023 estimated Hemi would cost $1.3b to bring into construction, creating 900 construction jobs and 600 operational roles. Previous owner De Grey Mining expected construction to take two years at the mine, which is 85km from Port Hedland. "The [capex — capital expenditure estimates] will need to be reviewed and dusted off to make sure it's still relevant," Mr Tonkin said. "De Grey had been articulating what the timeline was and we're not indifferent to what that is." Northern Star Resources' Steve McClare and Kalgoorlie Consolidated Gold Mines' Nick Strong oversee construction of the Fimiston Mill. ( ABC Goldfields: Jarrod Lucas ) Mr Tonkin said construction crews at work on a "We take a lot of learnings away from the Kalgoorlie expansion," he said. "The neatness of teams moving from Fimiston into Hemi is very strong." The previous feasibility studies for Hemi estimated an initial 12-year mine life and payback on the $1.3 billion investment in less than two years, based on an Australian dollar gold price of $2,700 an ounce.
