Gold Fields to Acquire Yamana Gold to create world’s fourth largest gold producer

May 31, 2022

Gold Fields Ltd. announced that it will acquire Canada’s Yamana Gold Inc. in an all share deal valued at $6.7 billion. The combined company will become the world’s fourth largest gold producer.

The combined company will be based in Johannesburg, South Africa where it will have a market capitalization of $15.9 billion.

Under the terms of the transaction, all of the outstanding Yamana shares will be exchanged at a ratio of 0.6 of an ordinary share in Gold Fields. The transaction implies a premium of 33.8 percent to the 10-day Volume-Weighted Average Price (VWAP) of Yamana’s Shares of US$5.20 on
May 27, 2022.

The acquisition of Yamana by Gold Fields significantly strengthens the ability of the combined company to deliver on Gold Fields’ three strategic pillars: maximizing asset potential; advancing ESG commitment; and growing the value and quality of its asset portfolio. The combined group has the potential to create significant long-term value for shareholders through greater scale, an industry-leading portfolio of assets, an enhanced production profile with significant growth potential, operational and geological synergies, and a strengthened financial profile for future
growth and shareholder returns.

Gold Fields said in a statement that Yamana is a natural strategic fit for Gold Fields, with its high quality, diversified portfolio of long life assets located in mining friendly rules-based jurisdictions across the Americas (including its five producing mines and pipeline of development projects and exploration properties) and with a shared focus on health and safety and ESG performance.

With the combination of Gold Fields’ and Yamana’s portfolio of assets, Gold Fields will become a new global gold major able to create value at every stage of its pipeline.

Chris Griffith, chief executive officer of Gold Fields said: “The result is a combination with much greater capacity and potential value than the sum of its parts. Each company brings with it a unique set of skills and geological knowledge, enabling the combined group to enhance its assets more efficiently over the long-term than they could as separate companies.

“Today’s announcement is the result of a robust and extensive process carried out by the Gold Fields’ Board and management team to identify the optimum solution to support our revised strategy.

“Like Gold Fields, Yamana is focused on operational delivery, disciplined capital allocation, portfolio management, maximizing shareholder returns, and upholding leading sustainability, safety and ESG performance. These shared priorities are foundational to this Transaction.”

Peter Marrone, executive chairman of Yamana Gold said: “This is an outstanding opportunity for our shareholders, employees and the local communities in which we operate throughout the Americas. The transaction delivers an immediate and compelling premium for Yamana Shareholders, reflecting the inherent fair value of our assets, while also offering an opportunity to benefit from the creation of a new global gold producer with an attractive value proposition.”



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