Dallas, Texas 10/16/2013 (Financialstrend) – Gold Fields Limited (ADR) (NYSE:GFI) is a Johannesburg, South Africa based gold mining company. On October 1, it had filed a SEC filing which announced acquisition of Australia based gold mining property Yilgarn South Assest. This gold mining portfolio includes three independent mines named “Granny Smith, Lawlers and Darlot”. GFI has entered into a purchase agreement with Barrick Gold Corporation for a sale consideration of $270 million.
50% of the $270 million will be paid out in the form of 28.7 million common shares of GFI. The reminder $135 million will be satisfied via the cash and other investments which GFI has on its book. The $135 million will include the $30 million that GFI has paid Barrick as deposit amount on signing of the sale agreement. Nick Holland, Chief Executive Officer of Gold Fields has been quoted to have commented that “We are pleased to have completed this acquisition of in-production ounces. Today we commenced integrating these assets with our existing operations in Western Australia where Gold Fields now has five active mines.”
GFI has gone on to give a forecast guidance of addition of 400,000 ounces to its annual production from all its operations. Post the acquisition, Gold Field’s production mines would be spread across multiple regions. Australia would yield 42% while Ghana yields 33% as per data released by GFI. South Africa accounts for close to 12% of the firms gold production.
In spite of these positive tidings the stock of GFI has shed close to 3% over the past week’s trading and is down 19.8% in value over the past 90 days. GFI is not alone in seeing its valuation dissipate. Most other gold mining companies have lost market value due to the sudden dip in gold futures prices over the past couple of days. When trading began on October 15, the stock started to slide and had shed close to 1.6% in value from its day starting price of $2.35 per share.
