Gold Fields acquires Yilgarn South Assets from Barrick Gold for $300M

Gold Fields (GFI) announced that it has entered into a binding sale and purchase agreement with Barrick Gold (ABX) to acquire its interests in the Granny Smith, Lawlers and Darlot gold mines, collectively the Yilgarn South Assets, in Western Australia, for a consideration of $300M, subject to downward working capital adjustments to a maximum of $30M. The acquisition provides Gold Fields with: an additional 452,000 ounces of annual production, at an All-in sustaining cost of $1,137 per ounce; 2.6M reserve ounces at a cost of about $115 per ounce; 1.9M resource ounces in addition to the reserve ounces; the total resource ounce acquisition cost is below $67 per ounce. Upon completion, Australia will represent Gold Fields' largest regional production centre with 42% of the Group's production, with Ghana decreasing to 34% and Peru and South Africa remaining largely unchanged at 13% and 11% respectively.

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