JOHANNESBURG, April 15 /CNW/ - Gold Fields Limited (Gold Fields) (JSE,
NYSE, NASDAQ Dubai: GFI) today announced that it has entered into a
binding agreement with IAMGOLD Corporation to acquire its 18.9%
minority stake in the Tarkwa and Damang gold mines in Ghana, for a cash
consideration of US$667 million.
Upon completion of the proposed acquisition, Gold Fields will have
increased its interest in each of the Tarkwa and Damang gold mines from
71.1% to 90%, the remaining 10% interest being held by the Government
of Ghana. The completion of the proposed acquisition, which is subject
to certain condition precedent being met, including Gold Fields
shareholders approval, is expected by 31 July 2011.
Upon completion of this transaction Gold Fields will acquire:
an additional 181,000 ounces of annual production at current cash costs
of $540/oz and Notional Cash Expenditure (NCE) of about $940/oz
based on results for the six months ended 31 December 2010;
an additional 2.14 million reserve ounces at a cost of about $300 per
an additional 3.27 million resource ounces at a cost of approximately
US$198 per ounce;
a significant resource and reserve upside potential, in particular at
the Damang mine; and
US$20 million in working capital.
Nick Holland, Chief Executive Officer of Gold Fields, said:
"The two most important guiding principles of our strategy are to grow
our free cash flow by growing our margin per ounce and by increasing
ounces produced on a per share basis. This transaction meets those
"Through this transaction we will consolidate our ownership in two
world-class mines in a stable and mining friendly jurisdiction where we
have been operating successfully for almost two decades and have a
"This is a low-risk acquisition of 'in-production ounces' generating
healthy free cash flow that will improve the overall quality of our
portfolio and be accretive to our shareholders on a per share basis.
"This proposed acquisition, together with the recent offer to the
minority shareholders in our Cerro Corona mine in Peru, are important
steps towards our objective of international diversification, and will
contribute meaningfully to our target of growing our production base to
five million ounces, either in production or in development, by 2015."
As at 14 April 2011, Gold Fields' economic interest in Gold Fields La
Cima, owners of Cerro Corona, was 92.9% up from 80.7% before the offer
was made. The offer closes in Peru later today.
There will be global teleconference relating to this announcement on
Monday, 18 April 2011, 16h30 (SA time).
DIAL IN NUMBERS
Notes to editors
About Gold Fields
Gold Fields is one of the world's largest unhedged producers of gold
with attributable annualised production of 3.6 million gold equivalent
ounces from eight operating mines in Australia, Ghana, Peru and South
Africa. Gold Fields also has an extensive and diverse global growth
pipeline with four major projects in resource development and
feasibility, with construction decisions expected in the next 18 to 24
months. Gold Fields has total attributable gold equivalent Mineral
Reserves of 76.7 million ounces and Mineral Resources of 225.4 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).
Sponsor: J.P. Morgan Equities Limited
 Notional Cash Expenditure (NCE) is the measure that Gold Fields
introduced to show the true cost of operating. NCE includes all
operating costs including G&A, all on- or near-mine exploration
expenditure, as well as all capital expenditure, inclusive of
maintenance as well as so-called growth capital. The delta between NCE
and the spot gold price is cash flow available to pay tax, interest,
greenfields exploration and dividends.
SOURCE Gold Fields Limited
For further information:
Enquiries, Investor Enquiries, Willie Jacobsz, Tel +508-839-1188 Mobile +857-241-7127 email Willie.Jacobsz@gfexpl.com Nikki Catrakilis-Wagner, Tel+27-11-562-9706, Mobile +27(0) 83-309-6720, email Nikki.Catrakilis-Wagner@goldfields.co.za Media Enquiries Sven Lunsche, Tel+27-11-562-9763, Mobile+27(0)83260-9279, email Sven.Lunsche@goldfields.co.za