Gold Fields sells its 45% interest in Asanko mine in Ghana for $170m
The deal will be settled in cash and shares
22 December 2023 - 11:47
by Andries Mahlangu
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Gold Fields interim CEO Martin Preece. Picture: SUPPLIED
Gold Fields has sold its 45% in interest in Asanko mine in Ghana to Toronto-Stock Exchange-listed joint venture partner Galiano Gold for $170m (R3.1bn).
The deal will be settled in cash and shares.
Gold Fields will also receive a 1% net smelter royalty on future production from the Nkran deposit, the main deposit at the mine.
The SA-based multinational gold producer and Galiano Gold each hold 45% of the mine, with the balance held by the government of Ghana.
“It is clear that the committed path forward for the Asanko mine requires consolidated ownership,” interim CEO Martin Preece said in a statement.
“Divestment of our interest in Asanko is part of our ongoing disciplined portfolio management process and releases capital for deployment by the company in line with our other capital allocation priorities.”
Preece will make way for new CEO Mike Fraser in January, whose appointment was announced in October.
Preece stepped into the hot seat after previous CEO Chris Griffith abruptly resigned in 2022 in the wake of his failure to acquire Canada’s Yamana Gold, in a heavily criticised deal that would have catapulted Gold Fields into fourth place among the world’s gold producers.
Its shares were 0.44% higher at R299.80 in late morning trade on Friday and up about 68% so far this year.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Gold Fields sells its 45% interest in Asanko mine in Ghana for $170m
The deal will be settled in cash and shares
Gold Fields has sold its 45% in interest in Asanko mine in Ghana to Toronto-Stock Exchange-listed joint venture partner Galiano Gold for $170m (R3.1bn).
The deal will be settled in cash and shares.
Gold Fields will also receive a 1% net smelter royalty on future production from the Nkran deposit, the main deposit at the mine.
The SA-based multinational gold producer and Galiano Gold each hold 45% of the mine, with the balance held by the government of Ghana.
“It is clear that the committed path forward for the Asanko mine requires consolidated ownership,” interim CEO Martin Preece said in a statement.
“Divestment of our interest in Asanko is part of our ongoing disciplined portfolio management process and releases capital for deployment by the company in line with our other capital allocation priorities.”
Preece will make way for new CEO Mike Fraser in January, whose appointment was announced in October.
Preece stepped into the hot seat after previous CEO Chris Griffith abruptly resigned in 2022 in the wake of his failure to acquire Canada’s Yamana Gold, in a heavily criticised deal that would have catapulted Gold Fields into fourth place among the world’s gold producers.
Its shares were 0.44% higher at R299.80 in late morning trade on Friday and up about 68% so far this year.
mahlangua@businesslive.co.za
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