Gold Fields Limited (NYSE: GFI) consolidated its already considerable presence in one of the richest gold regions in the world by completing its acquisition of Osisko Mining inc.
The company announced the deal’s completion on Monday, which barring shareholder and regulatory approval, will give Gold Fields full ownership of the Windfall Project in Quebec. The project is a high-grade gold development project poised to become central to the company’s diversification strategy.
Both Gold Fields and Osisko once held equal claims to the project. Now Gold Fields expects it will help it balance its aging assets in Ghana and Peru by adding 300,000 ounces per year at an all-in sustaining cost (AISC) of under $800 per ounce, starting in early 2027.
Production at Windfall is expected to begin in 2026, adding significant value to Gold Fields’ operations. This move also strengthens Gold Fields’ position in Canada, where it now holds one of the country’s largest and most promising gold projects.
Gold Fields acquired Osisko for CAD$2.16 billion, offering CAD$4.90 per share. Further, it represents a 55 per cent premium over Osisko’s trading price on August 9, 2024.
For shareholders, the deal offers an immediate payout, reflecting the high potential of the Windfall project. However, while the acquisition promises growth, Gold Fields faces execution and funding challenges in bringing Windfall to production, as previous obstacles with the Salares Norte project in Chile illustrate the complexities involved.
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Gold Fields works with Cree First Nations
The asset contains an estimated 3.2 million ounces of gold within 12 million tonnes at a grade of 8.1 grams per tonne in proven and probable reserves. The company believes further exploration could extend the project’s lifespan, adding more long-term value.
Gold Fields has committed to working closely with local communities, especially the Cree First Nation of Waswanipi and the municipality of Lebel-sur-Quévillon, to ensure that Windfall’s development brings economic benefits to the region while adhering to environmental standards.
The company is actively working toward finalizing an Impact and Benefits Agreement with the Cree communities, emphasizing sustainable development and robust community engagement.
Founded in 1887 by Cecil John Rhodes, Gold Fields has continuously reshaped its portfolio over the years. A decade ago, it sold all but one of its South African assets, redirecting its focus to newer, more profitable deposits in Ghana, Australia, and the Americas. This year, the gold producer projects output at 2.2 million to 2.3 million ounces, down from the initial estimate of 2.3 million to 2.4 million ounces due to delays in ramping up Salares Norte.
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