Gold Fields strengthens its global portfolio by acquiring Osisko Mining and full control of Windfall project
Gold Fields Ltd. has reached an agreement to purchase Canada’s Osisko Mining Inc. in a deal valued at $2.16bn, according to BNN Bloomberg.
This acquisition is part of Gold Fields' ongoing efforts to expand its portfolio amid rising gold prices.
The South African company will acquire all outstanding shares of Osisko for $4.90 each, which represents a 66.7 percent premium to Osisko’s closing price last Friday, based on Bloomberg’s calculations.
This deal will give Gold Fields full control of the Windfall gold project in Canada, a venture that was previously a 50:50 joint operation between the two companies.
Gold Fields, listed on the Johannesburg Stock Exchange, has been shifting away from its South African roots, where mining challenges have become increasingly difficult, particularly in the world’s deepest gold mines.
The acquisition of Osisko marks another step in the company’s strategy to diversify and improve its portfolio with high-quality, long-life assets like the Windfall project, which will add to its existing operations in countries such as Peru and Australia.
Mike Fraser, Gold Fields’ chief executive, emphasized that the acquisition aligns with the company’s strategy to enhance its portfolio’s quality. “The acquisition is consistent with our strategy to improve the quality of our portfolio through investment in high-quality, long-life assets, like Windfall,” Fraser stated.
Osisko’s board has unanimously recommended that its shareholders vote in favour of the deal. The acquisition comes at a time when gold prices are near record highs, encouraging companies like Gold Fields to pursue strategic deals to bolster their assets.
Earlier this year, Gold Fields saw an 18 percent decline in gold production during the first quarter, largely due to weather-related events and operational challenges across its various mining sites.
This transaction is significant as it positions Gold Fields to strengthen its global presence while capitalizing on favourable market conditions.
