Today’s News
Gold Fields is poised to acquire Osisko Mining for USD 1.6 billion, securing full ownership of the Windfall project in Canada as the South African company aims to bolster its gold supply amid soaring prices.
Image Source: Reuters
Under the terms of the deal, Gold Fields is offering 4.90 Canadian dollars (USD 3.57) in cash for each Osisko share, representing a 67% premium over Friday’s closing price of CAD 2.94 (USD 2.14).
“Throughout our joint ownership of the project since May 2023, and the due diligence that preceded it, we have developed a strong understanding of Windfall and its potential and view it as the next long-life cornerstone asset in our portfolio,” Gold Fields Chief Executive Mike Fraser said on Monday.
Windfall is among Canada’s largest gold deposits, expected to produce approximately 300,000 ounces of gold annually at an all-in sustaining cost of USD 758 per ounce, according to a 2022 feasibility study by Osisko Mining. The site has a projected mine life of 10 years, with potential for extension.
“Deposits with the scale and quality of Windfall, along with its highly prospective exploration camp, are extremely rare,” Fraser added.
Image Source: KITCO
The acquisition comes at a time when surging gold prices have significantly boosted producers’ revenues, with prices reaching an all-time high of just over USD 2,500 per troy ounce two weeks ago. So far this year, gold prices have risen nearly 20%, driven primarily by safe-haven demand and expectations of U.S. rate cuts.
Gold Fields announced that it has over USD 2.2 billion in cash and undrawn debt facilities. The company also noted that environmental permitting for the full-scale construction of the Windfall project is underway, with a new round of questions recently received from the Quebec Ministry of the Environment. Final approval is expected in 2025.
The acquisition is anticipated to close in the fourth quarter of this year.
Earlier in 2024, Gold Fields—one of the world’s leading gold producers—achieved its first production at its key project, Salares Norte in Chile.
This project is expected to add 485,000 ounces of gold annually once fully operational, although the ramp-up was recently delayed by worse-than-expected winter weather. Last year, the company produced around 2.3 million ounces of gold.
Other News
RBC’s Ex-CFO Sues Over Wrongful Termination
Former RBC CFO Nadine Ahn is suing the bank for CAD 50 million (approximately USD 36.397 million), alleging wrongful termination due to gender-based stereotyping.
Adani Shares Drop USD 2.4B After Allegations
Adani Group shares fell by USD 2.4 billion on Monday following new allegations from Hindenburg Research accusing India’s market regulator head of a conflict of interest.
Citigroup’s Digital Assets Head Departs
Citigroup’s head of digital assets for its markets unit, Shobhit Maini, is leaving after 14 years at the bank to pursue an entrepreneurial opportunity in the digital asset space.
Risk Disclosure:
Securities, Futures, CFDs and other financial products involve high risks due to the fluctuation in the value and prices of the underlying financial instruments. Due to the adverse and unpredictable market movements, large losses exceeding your initial investment could incur within a short period of time.
Please make sure you fully understand the risks of trading with the respective financial instrument before engaging in any transactions with us. You should seek independent professional advice if you do not understand the risks explained herein.
Disclaimer:
This information contained in this blog is for general reference only and is not intended as investment advice, a recommendation, an offer, or an invitation to buy or sell any financial instruments. It does not consider any specific recipient’s investment objectives or financial situation. Past performance references are not reliable indicators of future performance. Doo Prime and its affiliates make no representations or warranties about the accuracy or completeness of this information and accept no liability for any losses or damages resulting from its use or from any investments made based on it.
The above strategies reflect only the analysts’ opinions and are for reference only. They should not be used or considered as the basis for any trading decisions or as an invitation to engage in any transaction. Doo Prime does not guarantee the accuracy or completeness of this report and assumes no responsibility for any losses resulting from the use of this report. Do not rely on this report to replace your independent judgment. The market is risky, and investments should be made with caution.
