Gold Fields provides update on proposed Yamana Gold acquisition
Further to the announcement published on Tuesday, 31 May 2022, Gold Fields has provided a market update regarding the proposed acquisition of all the outstanding common shares of Yamana Gold Inc. (Yamana) (the Transaction), including additional information on the quality and investment case of the combined company.
Chris Griffith, Chief Executive Officer of Gold Fields, says: “We have a strong track record of growing the value and quality of our portfolio, being a disciplined operator, and rewarding our shareholders with superior returns. We believe the Yamana acquisition delivers on our strategy to grow the value and quality of our portfolio, by creating a winning combination of excellent assets with complementary operational strengths and proactively addressing industry wide production and reserve replacement challenges.
“Gold Fields has proven capacity to unlock the full potential of Yamana’s world class assets which will give us a stronger capital markets profile and enable us to generate superior shareholder returns.
I have been greatly encouraged by the constructive discussions we have had with our shareholders. The Board and management team remain steadfast in their belief in the long-term benefits that this deal will bring to both sets of shareholders.
“The acquisition of Yamana represents the culmination of many months of assessing the best option to accelerate Gold Fields’ growth strategy and deliver long term shareholder value. Having explored both organic growth and bolt-on acquisitions, moving now to complete this transaction is the best opportunity for both speed of delivery and value to accelerate the next phase of the company’s growth.”
TRANSACTION RATIONALE
Gold Fields presently benefits from a strong near-term growth outlook with the Salares Norte mine coming on stream in early 2023. Acquiring the 10–15-year quality replacement and growth profile of Yamana provides a logical strategic fit that will result in long-term growth of the quality and value of the combined portfolio of assets, while maintaining capital discipline and optimising shareholder returns.
Gold Fields is confident that now is the time to invest in the right asset pipeline given the global scarcity of quality assets that are long-life, low cost, and located in appealing jurisdictions. Gold Fields’ believes that the proposed Yamana acquisition will deliver on Gold Fields’ strategy and ensure it has the assets, capital and technical capability to continue to grow and deliver value for shareholders for the longer-term.
The new Gold Fields will have an industry-leading portfolio of high-quality, secure long-life assets with a strong growth pipeline. Gold Fields’ proven track record in portfolio optimisation and project development makes the Company well placed to unlock the full potential of Yamana’s development potential and create sustainable value into the longer-term. The proposed acquisition is further expected to deliver a stronger capital markets profile, increased balance sheet strength, significantly improved liquidity and low leverage in line with industry peers.
