All Article Properties:
{
"access_control": false,
"status": "publish",
"objectType": "Article",
"id": "2315789",
"signature": "Article:2315789",
"url": "https://staging.dailymaverick.co.za/article/2024-08-12-gold-fields-to-acquire-canadas-osisko-mining-for-r29bn-in-cash-to-assume-control-of-windfall-project/",
"shorturl": "https://staging.dailymaverick.co.za/article/2315789",
"slug": "gold-fields-to-acquire-canadas-osisko-mining-for-r29bn-in-cash-to-assume-control-of-windfall-project",
"contentType": {
"id": "1",
"name": "Article",
"slug": "article"
},
"views": 0,
"comments": 0,
"preview_limit": null,
"excludedFromGoogleSearchEngine": 0,
"title": "Gold Fields to acquire Canada’s Osisko Mining for R29bn in cash to assume control of Windfall project ",
"firstPublished": "2024-08-12 19:03:14",
"lastUpdate": "2024-08-12 19:05:21",
"categories": [
{
"id": "9",
"name": "Business Maverick",
"signature": "Category:9",
"slug": "business-maverick",
"typeId": {
"typeId": "1",
"name": "Daily Maverick",
"slug": "",
"includeInIssue": "0",
"shortened_domain": "",
"stylesheetClass": "",
"domain": "staging.dailymaverick.co.za",
"articleUrlPrefix": "",
"access_groups": "[]",
"locale": "",
"preview_limit": null
},
"parentId": null,
"parent": [],
"image": "",
"cover": "",
"logo": "",
"paid": "0",
"objectType": "Category",
"url": "https://staging.dailymaverick.co.za/category/business-maverick/",
"cssCode": "",
"template": "default",
"tagline": "",
"link_param": null,
"description": "",
"metaDescription": "",
"order": "0",
"pageId": null,
"articlesCount": null,
"allowComments": "1",
"accessType": "freecount",
"status": "1",
"children": [],
"cached": true
},
{
"id": "38",
"name": "World",
"signature": "Category:38",
"slug": "world",
"typeId": {
"typeId": "1",
"name": "Daily Maverick",
"slug": "",
"includeInIssue": "0",
"shortened_domain": "",
"stylesheetClass": "",
"domain": "staging.dailymaverick.co.za",
"articleUrlPrefix": "",
"access_groups": "[]",
"locale": "",
"preview_limit": null
},
"parentId": null,
"parent": [],
"image": "",
"cover": "",
"logo": "",
"paid": "0",
"objectType": "Category",
"url": "https://staging.dailymaverick.co.za/category/world/",
"cssCode": "",
"template": "default",
"tagline": "",
"link_param": null,
"description": "",
"metaDescription": "",
"order": "0",
"pageId": null,
"articlesCount": null,
"allowComments": "1",
"accessType": "freecount",
"status": "1",
"children": [],
"cached": true
}
],
"content_length": 3508,
"contents": "<span style=\"font-weight: 400;\">Gold Fields brought a bakkie-load of cash this time around and sealed the deal.</span>\r\n\r\n<span style=\"font-weight: 400;\">The JSE-listed gold producer announced on Monday that it had entered a definitive agreement to acquire all of the shares in Canada’s Osisko mining for over $2-billion in Canadian loonies, or just shy of R28.6-billion. This still needs approval from Osisko’s shareholders and some regulatory green lights but it is expected to be complete by the end of the year, and both boards are on board.</span>\r\n\r\n<span style=\"font-weight: 400;\">The jewel in the crown of this deal is the Windfall project in Quebec, which the two companies have been developing as a JV. </span>\r\n\r\n<p><img loading=\"lazy\" class=\"size-full wp-image-2315081\" src=\"https://www.dailymaverick.co.za/wp-content/uploads/2024/08/MDupuis_Windfall_SousTerre_Mars2023-125-scaled.jpg\" alt=\"Windfall project\" width=\"2560\" height=\"1706\" /> <em>Gold Fields has acquired the lucrative Windfall Project in Quebec. (Photo: Supplied)</em></p>\r\n\r\n<span style=\"font-weight: 400;\">“Windfall is among the largest gold deposits in Canada, and a top 10 gold deposit globally by head grade. Full ownership of Windfall enables Gold Fields to streamline decision-making and increase flexibility with respect to the development and subsequent operation of Windfall,” Gold Fields said. </span>\r\n\r\n<span style=\"font-weight: 400;\">It is expected to produce 300,000 ounces of gold a year for 10 years at an all-in sustaining cost of $758 an ounce, which Gold Fields says will make it one of its lowest-cost mines. </span>\r\n\r\n<span style=\"font-weight: 400;\">Gold Fields’ last attempt at a major acquisition was a $6.7-billion all-share offer in 2022 for Canada’s Yamana Gold, which triggered a backlash from shareholders worried about dilution. </span>\r\n\r\n<span style=\"font-weight: 400;\">A counter bid that included cash won the day when Gold Fields decided against a bidding war, and its then CEO Chris Griffith stepped down. </span>\r\n\r\n<b>Read more:</b> <a href=\"https://www.dailymaverick.co.za/article/2022-12-13-chris-griffith-falls-on-his-sword-quits-as-gold-fields-ceo-over-failed-yamana-transaction/\"><span style=\"font-weight: 400;\">Chris Griffith falls on his sword, quits as Gold Fields’ CEO over failed Yamana transaction</span></a><span style=\"font-weight: 400;\"> </span>\r\n\r\n<span style=\"font-weight: 400;\">Current CEO Mike Fraser, who took over on 1 January this year, has been fast out of the blocks with a deal and this time around, cash is king.</span>\r\n\r\n<span style=\"font-weight: 400;\">“We believe there is still value in our share price relative to our peers and therefore going out with a dilutionary share offer would probably not be the right answer,” Fraser said during a conference call about the transaction. </span>\r\n\r\n<span style=\"font-weight: 400;\">“Second, we have fairly low gearing in our portfolio so it made sense to use cash. Also with the ramp-ups of the current projects in our pipeline, we see ourselves deleveraging our balance sheet pretty rapidly. And last, it enabled us to move pretty quickly on executing this transaction.” </span>\r\n\r\n<p><img loading=\"lazy\" class=\"size-full wp-image-2315079\" src=\"https://www.dailymaverick.co.za/wp-content/uploads/2024/08/MDupuis_Windfall_SousTerre_Mars2023-101-scaled.jpg\" alt=\"gold fields windfall\" width=\"2560\" height=\"1706\" /> <em>Gold Fields has secured the high-grade Windfall Project in Quebec after acquiring the Canadian mining company Osisko. (Photo: Supplied)</em></p>\r\n\r\n<span style=\"font-weight: 400;\">Gold Fields maintains it is in a financial position to fund this deal, with $424-million in cash at the end of March and $1.8-billion available in undrawn debt facilities. And with the gold price near record highs, the company is clearly generating cash at the moment. </span>\r\n\r\n<span style=\"font-weight: 400;\">It must be said that investors do not seem thrilled – Gold Fields’ share price had lost over 5% by late afternoon trade on Monday. </span>\r\n\r\n<span style=\"font-weight: 400;\">There is a hefty premium in the offer price of 55% to Osisko Mining’s 20-day volume-weighted average trading price for the period ending 9 August 2024. One mining analyst told Daily Maverick that the assets in the current deal were “good but expensive”.</span>\r\n\r\n<span style=\"font-weight: 400;\">But Gold Fields’ share price tanked 20% when the Yamana bid was announced, so shareholders are not nearly as freaked out by this prospect. </span>\r\n\r\n<span style=\"font-weight: 400;\">Gold Fields’ strategy is to acquire quality, low-cost assets that also have a low carbon footprint, and the Windfall project ticks all those boxes – it is fully powered by hydroelectricity. </span>\r\n\r\n<span style=\"font-weight: 400;\">Whether or not it translates into a Windfall remains to be seen. </span><b>DM</b>",
"teaser": "Gold Fields to acquire Canada’s Osisko Mining for R29bn in cash to assume control of Windfall project ",
"externalUrl": "",
"sponsor": null,
"authors": [
{
"id": "24158",
"name": "Ed Stoddard",
"image": "https://www.dailymaverick.co.za/wp-content/uploads/2023/02/ed-stoddard.png",
"url": "https://staging.dailymaverick.co.za/author/ed-stoddard/",
"editorialName": "ed-stoddard",
"department": "",
"name_latin": ""
}
],
"description": "",
"keywords": [
{
"type": "Keyword",
"data": {
"keywordId": "15030",
"name": "Gold Fields",
"url": "https://staging.dailymaverick.co.za/keyword/gold-fields/",
"slug": "gold-fields",
"description": "",
"articlesCount": 0,
"replacedWith": null,
"display_name": "Gold Fields",
"translations": null
}
},
{
"type": "Keyword",
"data": {
"keywordId": "182724",
"name": "M&A",
"url": "https://staging.dailymaverick.co.za/keyword/mampa/",
"slug": "mampa",
"description": "",
"articlesCount": 0,
"replacedWith": null,
"display_name": "M&A",
"translations": null
}
},
{
"type": "Keyword",
"data": {
"keywordId": "347692",
"name": "Ed Stoddard",
"url": "https://staging.dailymaverick.co.za/keyword/ed-stoddard/",
"slug": "ed-stoddard",
"description": "",
"articlesCount": 0,
"replacedWith": null,
"display_name": "Ed Stoddard",
"translations": null
}
},
{
"type": "Keyword",
"data": {
"keywordId": "370389",
"name": "Windfall",
"url": "https://staging.dailymaverick.co.za/keyword/windfall/",
"slug": "windfall",
"description": "",
"articlesCount": 0,
"replacedWith": null,
"display_name": "Windfall",
"translations": null
}
},
{
"type": "Keyword",
"data": {
"keywordId": "422513",
"name": "Osisko Mining",
"url": "https://staging.dailymaverick.co.za/keyword/osisko-mining/",
"slug": "osisko-mining",
"description": "",
"articlesCount": 0,
"replacedWith": null,
"display_name": "Osisko Mining",
"translations": null
}
}
],
"short_summary": null,
"source": null,
"related": [],
"options": [],
"attachments": [
{
"id": "47083",
"name": "Gold Fields has secured the high-grade Windfall Project in Quebec after acquiring the Canadian mining company Osisko. (Photo: Supplied)",
"description": "<span style=\"font-weight: 400;\">Gold Fields brought a bakkie-load of cash this time around and sealed the deal.</span>\r\n\r\n<span style=\"font-weight: 400;\">The JSE-listed gold producer announced on Monday that it had entered a definitive agreement to acquire all of the shares in Canada’s Osisko mining for over $2-billion in Canadian loonies, or just shy of R28.6-billion. This still needs approval from Osisko’s shareholders and some regulatory green lights but it is expected to be complete by the end of the year, and both boards are on board.</span>\r\n\r\n<span style=\"font-weight: 400;\">The jewel in the crown of this deal is the Windfall project in Quebec, which the two companies have been developing as a JV. </span>\r\n\r\n[caption id=\"attachment_2315081\" align=\"alignnone\" width=\"2560\"]<img class=\"size-full wp-image-2315081\" src=\"https://www.dailymaverick.co.za/wp-content/uploads/2024/08/MDupuis_Windfall_SousTerre_Mars2023-125-scaled.jpg\" alt=\"Windfall project\" width=\"2560\" height=\"1706\" /> <em>Gold Fields has acquired the lucrative Windfall Project in Quebec. (Photo: Supplied)</em>[/caption]\r\n\r\n<span style=\"font-weight: 400;\">“Windfall is among the largest gold deposits in Canada, and a top 10 gold deposit globally by head grade. Full ownership of Windfall enables Gold Fields to streamline decision-making and increase flexibility with respect to the development and subsequent operation of Windfall,” Gold Fields said. </span>\r\n\r\n<span style=\"font-weight: 400;\">It is expected to produce 300,000 ounces of gold a year for 10 years at an all-in sustaining cost of $758 an ounce, which Gold Fields says will make it one of its lowest-cost mines. </span>\r\n\r\n<span style=\"font-weight: 400;\">Gold Fields’ last attempt at a major acquisition was a $6.7-billion all-share offer in 2022 for Canada’s Yamana Gold, which triggered a backlash from shareholders worried about dilution. </span>\r\n\r\n<span style=\"font-weight: 400;\">A counter bid that included cash won the day when Gold Fields decided against a bidding war, and its then CEO Chris Griffith stepped down. </span>\r\n\r\n<b>Read more:</b> <a href=\"https://www.dailymaverick.co.za/article/2022-12-13-chris-griffith-falls-on-his-sword-quits-as-gold-fields-ceo-over-failed-yamana-transaction/\"><span style=\"font-weight: 400;\">Chris Griffith falls on his sword, quits as Gold Fields’ CEO over failed Yamana transaction</span></a><span style=\"font-weight: 400;\"> </span>\r\n\r\n<span style=\"font-weight: 400;\">Current CEO Mike Fraser, who took over on 1 January this year, has been fast out of the blocks with a deal and this time around, cash is king.</span>\r\n\r\n<span style=\"font-weight: 400;\">“We believe there is still value in our share price relative to our peers and therefore going out with a dilutionary share offer would probably not be the right answer,” Fraser said during a conference call about the transaction. </span>\r\n\r\n<span style=\"font-weight: 400;\">“Second, we have fairly low gearing in our portfolio so it made sense to use cash. Also with the ramp-ups of the current projects in our pipeline, we see ourselves deleveraging our balance sheet pretty rapidly. And last, it enabled us to move pretty quickly on executing this transaction.” </span>\r\n\r\n[caption id=\"attachment_2315079\" align=\"alignnone\" width=\"2560\"]<img class=\"size-full wp-image-2315079\" src=\"https://www.dailymaverick.co.za/wp-content/uploads/2024/08/MDupuis_Windfall_SousTerre_Mars2023-101-scaled.jpg\" alt=\"gold fields windfall\" width=\"2560\" height=\"1706\" /> <em>Gold Fields has secured the high-grade Windfall Project in Quebec after acquiring the Canadian mining company Osisko. (Photo: Supplied)</em>[/caption]\r\n\r\n<span style=\"font-weight: 400;\">Gold Fields maintains it is in a financial position to fund this deal, with $424-million in cash at the end of March and $1.8-billion available in undrawn debt facilities. And with the gold price near record highs, the company is clearly generating cash at the moment. </span>\r\n\r\n<span style=\"font-weight: 400;\">It must be said that investors do not seem thrilled – Gold Fields’ share price had lost over 5% by late afternoon trade on Monday. </span>\r\n\r\n<span style=\"font-weight: 400;\">There is a hefty premium in the offer price of 55% to Osisko Mining’s 20-day volume-weighted average trading price for the period ending 9 August 2024. One mining analyst told Daily Maverick that the assets in the current deal were “good but expensive”.</span>\r\n\r\n<span style=\"font-weight: 400;\">But Gold Fields’ share price tanked 20% when the Yamana bid was announced, so shareholders are not nearly as freaked out by this prospect. </span>\r\n\r\n<span style=\"font-weight: 400;\">Gold Fields’ strategy is to acquire quality, low-cost assets that also have a low carbon footprint, and the Windfall project ticks all those boxes – it is fully powered by hydroelectricity. </span>\r\n\r\n<span style=\"font-weight: 400;\">Whether or not it translates into a Windfall remains to be seen. </span><b>DM</b>",
"focal": "50% 50%",
"width": 0,
"height": 0,
"url": "https://dmcdn.whitebeard.net/dailymaverick/wp-content/uploads/2024/08/MDupuis_Windfall_AerienDrone_Mars2023-001.jpg",
"transforms": [
{
"x": "200",
"y": "100",
"url": "https://dmcdn.whitebeard.net/i/K6g-VYqt9vpVd5FLv60gEnyEAng=/200x100/smart/filters:strip_exif()/file/dailymaverick/wp-content/uploads/2024/08/MDupuis_Windfall_AerienDrone_Mars2023-001.jpg"
},
{
"x": "450",
"y": "0",
"url": "https://dmcdn.whitebeard.net/i/pdQ7qSpJaborFGVz6enNGv49Jzo=/450x0/smart/file/dailymaverick/wp-content/uploads/2024/08/MDupuis_Windfall_AerienDrone_Mars2023-001.jpg"
},
{
"x": "800",
"y": "0",
"url": "https://dmcdn.whitebeard.net/i/cZ-UnuUUtKtuTluY-WE6muzlP0Q=/800x0/smart/filters:strip_exif()/file/dailymaverick/wp-content/uploads/2024/08/MDupuis_Windfall_AerienDrone_Mars2023-001.jpg"
},
{
"x": "1200",
"y": "0",
"url": "https://dmcdn.whitebeard.net/i/r5_vnOh5OAWXcLvdr4H8uDguohY=/1200x0/smart/filters:strip_exif()/file/dailymaverick/wp-content/uploads/2024/08/MDupuis_Windfall_AerienDrone_Mars2023-001.jpg"
},
{
"x": "1600",
"y": "0",
"url": "https://dmcdn.whitebeard.net/i/ayCgS1NI1QYkJxf6NYxcYF3KA7E=/1600x0/smart/filters:strip_exif()/file/dailymaverick/wp-content/uploads/2024/08/MDupuis_Windfall_AerienDrone_Mars2023-001.jpg"
}
],
"url_thumbnail": "https://dmcdn.whitebeard.net/i/K6g-VYqt9vpVd5FLv60gEnyEAng=/200x100/smart/filters:strip_exif()/file/dailymaverick/wp-content/uploads/2024/08/MDupuis_Windfall_AerienDrone_Mars2023-001.jpg",
"url_medium": "https://dmcdn.whitebeard.net/i/pdQ7qSpJaborFGVz6enNGv49Jzo=/450x0/smart/file/dailymaverick/wp-content/uploads/2024/08/MDupuis_Windfall_AerienDrone_Mars2023-001.jpg",
"url_large": "https://dmcdn.whitebeard.net/i/cZ-UnuUUtKtuTluY-WE6muzlP0Q=/800x0/smart/filters:strip_exif()/file/dailymaverick/wp-content/uploads/2024/08/MDupuis_Windfall_AerienDrone_Mars2023-001.jpg",
"url_xl": "https://dmcdn.whitebeard.net/i/r5_vnOh5OAWXcLvdr4H8uDguohY=/1200x0/smart/filters:strip_exif()/file/dailymaverick/wp-content/uploads/2024/08/MDupuis_Windfall_AerienDrone_Mars2023-001.jpg",
"url_xxl": "https://dmcdn.whitebeard.net/i/ayCgS1NI1QYkJxf6NYxcYF3KA7E=/1600x0/smart/filters:strip_exif()/file/dailymaverick/wp-content/uploads/2024/08/MDupuis_Windfall_AerienDrone_Mars2023-001.jpg",
"type": "image"
}
],
"summary": "Gold Fields is hoping for a windfall with its $C2.16-billion (R28.6-billion) cash deal to acquire Canada’s Osisko Mining. The big prize is the high-grade Windfall project in Quebec. CEO Mike Fraser, who assumed the helm of Gold Fields in January, has wasted little time in making a big deal, and, pointedly, cash is king. ",
"template_type": null,
"dm_custom_section_label": null,
"elements": [],
"seo": {
"search_title": "Gold Fields to acquire Canada’s Osisko Mining for R29bn in cash to assume control of Windfall project ",
"search_description": "<span style=\"font-weight: 400;\">Gold Fields brought a bakkie-load of cash this time around and sealed the deal.</span>\r\n\r\n<span style=\"font-weight: 400;\">The JSE-listed gold producer announced on Mond",
"social_title": "Gold Fields to acquire Canada’s Osisko Mining for R29bn in cash to assume control of Windfall project ",
"social_description": "<span style=\"font-weight: 400;\">Gold Fields brought a bakkie-load of cash this time around and sealed the deal.</span>\r\n\r\n<span style=\"font-weight: 400;\">The JSE-listed gold producer announced on Mond",
"social_image": ""
},
"cached": true,
"access_allowed": true
} 
Gold Fields has acquired the lucrative Windfall Project in Quebec. (Photo: Supplied)
Gold Fields has secured the high-grade Windfall Project in Quebec after acquiring the Canadian mining company Osisko. (Photo: Supplied)