COMPANY COMMENT
Cautious Gold Fields takes pragmatic line
The producer moves away from full ownership of big-ticket items to share risk
Gold Fields has done a deal with a mid-tier gold miner that shows again the company’s approach to growth: cautious with a healthy dose of risk mitigation. The $203m transaction with Asanko Gold to buy a 50% stake in the Canadian company’s Ghana operating subsidiary, as well as a 9.9% stake in the listed subsidiary, could be the first step to increase exposure to the company as it ramps up to full production of 250,000oz a year at an all-in sustaining cost of $860/oz at its new mine. First, this is a clear indication that there is no more acquisitive growth for Gold Fields in SA, where it is grappling to bring its R29bn South Deep mine to steady stage production. Second, it is the way Gold Fields is looking for opportunistic growth, snapping up stakes in junior and mid-tier companies that are either in production or close to production. CEO Nick Holland is clear the company wants to grow in countries in which it operates, with two big projects in Australia and Ghana, with the bolt-on...
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