Gold Fields Ltd. CEO Chris Griffith called his purchase of Yamana Gold Inc. the \u0022optimum solution\u0022 to support his business strategy
appointed CEO of Gold Fields a year ago
Rather, Griffith insisted that the purchase should be seen as a move to add to Gold Fields’ assets at a time when finding and building new mines is becoming increasingly difficult, leaving ambitious mining companies with little choice but to grow through acquisitions. The deal values Yamana’s “reserve ounces” — gold it has not yet produced — at US$208 per ounce. A company with one mine would typically cost between US$350 and US$400 per ounce, Griffith said.Article content
“Our board looked at what could we buy … that would give us critical mass, that would be better than what we currently are,” Marrone said in an interview. “And all of it was unbelievably, in many ways, expensive, and there’s a lot of risk in these things, single assets, development stage projects.” “We suggest the proposed price is now no longer a fair value to Yamana shareholders,” Jackie Przybylowski, an analyst at BMO Capital Markets wrote. “It’s not clear if the offer could be re-priced or a cash component could be added to support the valuation ahead of the transaction.”
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