Gold Fields Completes Acquisition of Barrick's Granny Smith, Lawlers and Darlot Gold Mines in Western Australia
JOHANNESBURG, Oct. 1, 2013 /CNW/ - Gold Fields Limited (Gold Fields) (JSE, NYSE, NASDAQ Dubai: GFI) is pleased to announce that it has completed the acquisition of the Granny Smith, Lawlers and Darlot gold mines (collectively the Yilgarn South Assets) in Western Australia, from Barrick Gold Corporation (Barrick).
Gold Fields acquired the assets for a total net consideration of US$270 million after adjustments for working capital, mine capital and employee entitlements.
In accordance with the sale and purchase agreement, Gold Fields elected to satisfy half of the consideration by delivering 28.7 million of its common shares (which was based on the 5-day VWAP for the ADR's trading on the NYSE prior to closing). The balance of US$135 million (less a US$30 million deposit paid on signing of the agreement) was paid from cash resources held by Gold Fields in Australia.
Nick Holland, Chief Executive Officer of Gold Fields, said:
"We are pleased to have completed this acquisition of in-production ounces. Today we commenced integrating these assets with our existing operations in Western Australia where Gold Fields now has five active mines.
Considering the potential for regional and operational synergies with our existing assets in the region, as well as the benefits from applying Gold Fields' low cost, cash-focussed operating model to the acquired assets, this acquisition should have a positive impact on the Group's operations.
Based on reported production for the first half of 2013, these assets are expected to add approximately 400,000 ounces of production to the Gold Fields portfolio, at costs lower than the current Group average.
This transaction also significantly advances Gold Fields' strategic objective of achieving a more balanced and globally diversified portfolio, with Australia now accounting for approximately 42% of Gold Fields' production, Ghana approximately 33%, Peru approximately 13% and South Africa approximately 12%.
Notes to editors
About Gold Fields
Gold Fields is a significant unhedged producer of gold with attributable annualised production of approximately 2.0 million gold equivalent ounces from six operating mines in Australia, Ghana, Peru and South Africa. Gold Fields has total managed gold-equivalent Mineral Reserves of 64 million ounces and Mineral Resources of 155 million ounces. Gold Fields is listed on the JSE Limited (primary listing), the New York Stock Exchange (NYSE), NASDAQ Dubai Limited, Euronext in Brussels (NYX) and the Swiss Exchange (SWX). In August 2013, Gold Fields acquired Barrick Gold's Granny Smith, Lawlers and Darlot Gold Mines in Western Australia, a transaction that is expected to be completed in September 2013.
Sponsor: J.P. Morgan Equities South Africa (Pty) Ltd
This press release is for information purposes only and does not constitute or form part of an offer to sell or the solicitation of an offer to buy or subscribe to any securities of Gold Fields. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933 (the "Securities Act") or with any securities regulatory authority of any state or other jurisdiction of the United States and may not be offered, sold, resold, transferred or delivered, directly or indirectly, in the United States except pursuant to registration under, or an exemption from the registration requirements of, the Securities Act. There will be no public offering of securities in the United States or any other jurisdiction.
Certain statements included in this announcement, as well as oral statements that may be made by Gold Fields, or by officers, directors or employees acting on its behalf related to the subject matter hereof, constitute or are based on forward-looking statements. Forward-looking statements are preceded by, followed by or include the words "may", "will", "should", "expect", "envisage", "intend", "plan", "project", "estimate", "anticipate", "believe", "hope", "can", "is designed to" or similar phrases. These forward-looking statements involve a number of known and unknown risks, uncertainties and other factors, many of which are difficult to predict and generally beyond the control of Gold Fields, that could cause Gold Fields' actual results and outcomes to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. Such risks, uncertainties and other factors include, among others, Gold Fields' ability to complete the transaction, Gold Fields' ability to successfully integrate the acquired assets with its existing operations, Gold Fields' ability to achieve anticipated efficiencies and other cost savings in connection with the transaction, changes in relevant governmental regulations, particularly environmental, tax, health and safety, regulations and potential new legislation affecting mining rights, Gold Fields' future financial position and plans, strategies, objectives, capital expenditures, and projected costs, the success of exploration and development activities, as well as projected level of gold price and other risks. Gold Fields undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this announcement or to reflect any change in Gold Fields' expectations with regard thereto.
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