$7 billion all\u002Dshare deal latest in a renewed shift toward consolidation in the gold industry
Yamana has mines in Canada, Argentina, Chile and Brazil, and Gold Fields said the acquisition fits with its strategy of expanding in “mining friendly” jurisdictions across the Americas.
“It’s a good deal,” said Rene Hochreiter, an analyst at Noah Capital Markets in Johannesburg. “It adds a lot of value to Gold Fields and I wouldn’t look at what the share price does today.” That premium offered by Gold Fields contrasts with the shift in recent years to mergers of equals in the gold industry. Those zero-premium deals — which consolidate assets to minimize costs and maximize shareholder returns — began with the US$5.4 billion mega merger of Barrick Gold Corp. and Randgold Resources Ltd. announced in 2018.
Output could rise to 3.8 million ounces from 2024 as the company’s Salares Norte mine opens, which could make Gold Fields the third-biggest producer, the CEO said. There was the potential to increase production to 4.8 million ounces within a decade, he said.
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