Gold Fields (GFI) to Boost Portfolio With Osisko Mining Deal

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]