Latest news with #GoldRoadResources
Business Insider
05-05-2025
- Business
- Business Insider
South Africa's Gold Fields to acquire Australia's Gold Road for $2.4 billion
South African gold miner Gold Fields, via its subsidiary Gruyere Holdings, has announced plans to acquire Gold Road Resources in an enhanced deal that values the Australian gold miner's equity at A$3.7 billion (US$2.39 billion). Gold Fields plans to acquire Gold Road Resources in a deal worth A$3.7 billion. Acquisition will give Gold Fields full control of Gruyere gold mine in Western Australia. This marks the third major gold sector transaction in the last six months due to soaring gold prices and geopolitical tensions. South African gold miner Gold Fields, via its subsidiary Gruyere Holdings, has announced plans to acquire Gold Road Resources in an enhanced deal that values the Australian gold miner's equity at A$3.7 billion (US$2.39 billion). The buyout, announced Monday by both companies, will give Gold Fields full control of the low-cost, long-life Gruyere gold mine in Western Australia, which it currently operates through a joint venture with Gold Road Resources, Reuters reported. Gold Fields currently holds the other 50% interest in the Gruyere gold mine, and said that the consolidation forms part of its strategy of improving portfolio quality via long-life assets. This marks the third major gold sector transaction in just six months, as soaring geopolitical tensions drive gold prices to record highs and intensify merger activity in one of the world's hottest mining markets. Earlier this year, Northern Star Resources agreed to acquire De Grey Mining in an all-share deal valued at A$5 billion, while Ramelius Resources moved to take over Spartan Resources, creating a combined A$4.2 billion entity. A robust gold price, coupled with a weaker Australian dollar, has made local producers especially appealing to global investors, one investment banker noted. Bellevue Gold, valued at A$1.3 billion, is widely seen as a potential next target after hiring UBS last month to conduct a strategic business review. Under the terms unveiled on Monday, Gold Fields has sweetened its bid for Gold Road Resources, offering shareholders a fixed cash payment of A$2.52 per share along with a variable cash component tied to the full value of each shareholder's stake in Northern Star Resources. The new offer represents a notable increase from the initial March proposal of A$2.27 per share plus the variable component, a deal Gold Road had dismissed as 'highly opportunistic.'
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.
Perth Now
05-05-2025
- Business
- Perth Now
Share market winning streak at risk as banks, oil slip
Australian shares are on track to break a seven-session winning streak, after hopes of an early uptick crumbled under downward pointing US futures. The S&P/ASX200 was down 57.9 points, or 0.7 per cent, to 8180.1 by midday, as the broader All Ordinaries lost 54.3 points, or 0.64 per cent, to 8401.9. After-hours trading on Wall Street's S&P500 mini-futures slipped by 0.7 per cent on Monday morning, after the main index failed to break convincingly above pre-Liberation Day levels last week. The leading US index could and could be taking a breather after better-than-expected quarterly earnings and hopes of tariff relief helped it to a nine-day winning streak, it's best run in 20 years. "I think this week's catalysts could see markets become anxious," Moomoo market analyst Jessica Amir said. "It all depends on the results we see from US, UK and other central banks' meetings, earnings reports from about 100 companies and tariff talks." Locally, Labor's landslide federal election win at the weekend quelled investor fears of a minority government, with Prime Minister Anthony Albanese's party set to sweep 86 of Parliament's 150 seats. "Now we can expect the investment world will get back to basics: focusing on fundamentals, the health of the local economy and companies that make up our share market," Ms Amir said. Financial stocks weighed heavily on the local bourse, down 1.6 per cent as Westpac lost 2.5 per cent slip after posing a one per cent drop in half year profit. The Commonwealth Bank was also down 2.2 per cent, rejecting from its $169.75 record on Friday to trade at $165.95. Energy stocks were sharply lower, down 2.1 per cent, tracking with a dip in oil prices after OPEC+ flagged output hikes of up to 2.2 million barrels per day by November. US President Donald Trump, who has urged OPEC+ to boost crude supply to cut prices at the bowser, is set to visit leader-member Saudi Arabia in May to discuss an arms deal. Brent crude futures have lost the $US60 level to trade at $US59.13 a barrel. The slip in fuel prices helped Qantas shares rip 2.7 per cent higher to $9.31, with last month's 18.5 per cent drop in crude prices set to filter through to jet fuel prices. "Qantas always seems to be quick to add a fuel tax/surcharge to flight prices when the crude oil price is ripping higher," IG Markets analyst Tony Sycamore said. "Will Qantas be looking to pass on their fuel cost savings to customers?" Eight of eleven local sectors were trading lower by lunchtime, with industrials bucking the trend with a 0.6 per cent gain. Materials stocks were down 0.5 per cent, with large cap miners Fortescue (-1.4 per cent), Rio Tinto (-0.8 per cent) and BHP (-0.7 per cent) all trading lower. Most gold miners were in the red, with the exception of Gold Road Resources, which had rallied almost 10 per cent to $3.26 after the takeover target entered into a scheme implementation deed with suitor Gold Road Resources. The Australian dollar has continued to make ground against the greenback and is buying 64.68 US cents, up from 64.11 US cents on Friday at 5pm.
AU Financial Review
05-05-2025
- Business
- AU Financial Review
Gold Road succumbs to $3.7b takeover from South African partner
Gold Road Resources has succumbed to the advances of Gold Fields after the South African suitor sweetened its takeover offer to $3.7 billion, concluding a public war of words between the squabbling joint venture partners. The agreement will grant Gold Fields full ownership of the lucrative Gruyere mine in Western Australia, which has produced more than 1.5 million ounces since starting operations in mid-2019.
Reuters
25-03-2025
- Business
- Reuters
Australia's Gold Road Resources hits record high after spurning Gold Fields' bid
March 25 (Reuters) - Shares of Australia's Gold Road Resources ( opens new tab climbed an all-time peak on Tuesday, a day after rebuffing South African miner Gold Fields' (GFIJ.J), opens new tab $2.1 billion acquisition proposal, deeming it to significantly undervalue the firm. Gold Road Resources' stock jumped as much as 15.5% to a record high of A$2.830 earlier in the day. It was last trading up 13.9%, as of 0145 GMT. The Australian explorer said it had rejected Gold Fields' offer after market hours on Monday, considering it to be "highly opportunistic". Gold Road shareholders would have received A$3.05 ($1.92) per share under the South African miner's offer. Gold miners are undergoing a wave of consolidation this year as companies seek to grow their reserves at a time of sky high bullion prices. "After a bid is rejected, the takeover company usually comes back with a second more lucrative bid," said Jessica Amir, a market analyst at trading platform Moomoo, suggesting that the market has a similar view. Gold Fields' offer targeted consolidating control over the cost-efficient, long-life Gruyere gold mine in Western Australia, a venture it presently operates in collaboration with Gold Road Resources. "The offer attributes no value at all to the potential underground expansion of the Gruyere mine," Gold Road said. A counter offer was tabled by Gold Road for buying out its partner's share in the gold mine but it was rejected by the Johannesburg-based miner. "The announcement demonstrates the deterioration of the relationship to the point where grievances are now being aired publicly," Jefferies said. Gold Fields' CEO Mike Fraser said Northern Star Resources' ( opens new tab imminent $3.3 billion acquisition of its peer De Grey Mining ( opens new tab, which counts Gold Road as its top shareholder, acted as a catalyst for Gold Fields' bid. ($1 = 1.5898 Australian dollars)
