Gold Fields will pay $300 million, subject to capital adjustments of as much as $30 million, for Toronto-based Barrick’s Yilgarn South Assets in Western Australia, it said in a separate statement.
“We are buying assets that are in production and can be cash generative very soon,” Holland said in the telephone interview. “We can capture synergies pretty quickly. We’re buying at the bottom of the cycle.”
The deal will add 452,000 ounces of annual production
Indicates that BRD is essentially worthless at this time. gl
It's amusing that attacks on my factual posts seem to consist entirely of ad homs and associated drivel from incoherent semi-literates.
The Yilgarn South assets are comprised principally of the Granny Smith, Lawlers and Darlot mines. In aggregate, these mines produced 452,000 ounces in 2012 at all-in sustaining costs (AISC) of $1,137 per ounce(1) and 196,000 ounces in the first half of 2013 at AISC of $1,145 per ounce. Yilgarn South contained proven and probable reserves of 2.6 million ounces(2), measured and indicated resources of 0.6 million ounces(2) and inferred resources of 1.2 million ounces(2) as at December 31, 2012.
BRD is in worse shape on all levels with $100m debt/interest payments due prior mar 2016 to boot.
Subtract "total liabilities" from current probable market value and you get a large negative number.
Market voting today says that ABX +2.5% vs GFI -7.5%, gets the best of the deal.