Gold Fields says financial position secure as seals Osisko deal
GOLD Fields said on Monday it remained “in a strong financial position” following the completion of the $1.39bn acqusition of Osisko Mining.The Johannesburg-headquartered miner announced in August the purchase of Osisko shares, in which it already had a 50% stake following its $600m purchase in 2023, would give it 100% control of Windfall, a project in Canada’s Québec.The transaction drew criticism from some quarters, however as Gold Fields has paid a 55% premium for the balance of shares in Osisko.Commenting following the completion of all outstanding regulatory deal hurdles, Gold Fields said its financial position is expected 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%.“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 in a statement. Windfall is expected to produce approximately 300,000 ounces 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.The post Gold Fields says financial position secure as seals Osisko deal appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com
Quelle: Mining.com
