Today's sell-off may be giving gold investors a buying opportunity. Shares of South African gold mining stock Gold Fields (GFI -7.71%) slid 8% through 1:50 p.m. ET Friday after the company reported disappointing earnings results for the first half of 2024. That's not my word -- "disappointing." It's how CEO Mike Fraser himself described a first half in which gold production dropped 20%, leading to a 16% decline in net income to $0.43 per diluted share. Gold Fields' first-half earnings Gold retails for more ...

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Company Overview - Gold Fields Limited (GFI) has signed a deal to acquire Osisko Mining, aiming to strengthen its portfolio with high-quality, long-life assets [1] - The acquisition is expected to close in the fourth quarter of 2024, pending approvals from Osisko shareholders and other parties [1] Project Details - Upon approval, Gold Fields will gain complete ownership of the Windfall Project in Québec, Canada, which has been jointly managed since May 2023 [2] - The Windfall Project is estimated to produce 300,000 ounces of gold annually, with all-in-sustaining costs of $758 per ounce, making it the lowest-cost mine in Gold Fields' portfolio [3] Financial Aspects - The deal is valued at C$4.90 ($3.57) per share in an all-cash transaction [5] - As of March 31, 2024, Gold Fields had a net debt to EBITDA ratio of 0.51X, with $424 million in cash and $1.8 billion in undrawn debt facilities [5] - Total investment in the Windfall Project has exceeded C$1 billion ($0.73 billion), including over C$800 million ($583 million) invested by Osisko Mining prior to the joint venture [4] Industry Context - Gold Fields operates within the Mining - Gold industry, where peers like Agnico Eagle Mines Limited reported adjusted earnings of $1.07 per share, up from 65 cents year-over-year, and revenues of $2.08 billion, a nearly 21% increase [6] - Galiano Gold Inc. reported adjusted earnings of 3 cents per share, beating expectations, while Kinross Gold Corporation's adjusted earnings were in line with the prior year [7]

Group 1: Acquisition Details - Gold Fields announced the acquisition of Osisko Mining for $2.16 billion, paying $4.90 per share, which represents a 66.7% premium over Osisko's closing price [2][3] - The acquisition is seen as a move to diversify away from South Africa, where Gold Fields faces challenges in extracting precious metals [3] Group 2: Market Reaction - Following the acquisition announcement, Gold Fields' stock dropped approximately 5% in market value [1] - The current valuation of Gold Fields is at 3.08x trailing-year revenue, higher than the gold mining industry's average of 2.73x [2] Group 3: Economic Context - The recent collapse of the Japanese yen carry trade and potential changes in Federal Reserve monetary policy are influencing investor sentiment [4][5] - If the Federal Reserve adopts a dovish stance, it could make Gold Fields' stock more attractive, especially if gold prices rise [6] Group 4: Technical Analysis - GFI stock is currently near its 200-day moving average, which may indicate a potential bounce back [8] - The recent downturn has made options for GFI stock, such as the $15 call for January 2025, more appealing due to increased demand [7][9]

Michael McCrae Michael McCrae is leading Kitco's coverage of the mining sector. McCrae, who has both an MBA and CMA, knows how to build digital media properties. He was cofounder and publisher of MINING.com, an award-winning news site. Before coming to media, McCrae worked in IT and banking. Please reach out: mmccrae@kitco.com or (514) 670-1383. You can also follow him at @michaelmccrae. Share Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals I ...

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government. S ...

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As filed with the Securities and Exchange Commission on 28 March 2024 ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended 31 December 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 or ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of event requiring this shell company report For the transition period from to Commission file number: 1-31318 UNITE ...