PERTH (miningweekly.com) – Gold miner Gold Fields has not ruled out further acquisition negotiations following its $300-million buy-out of three mines from TSX-listed Barrick Gold last week.
Speaking on the sidelines of the Africa Downunder conference, Gold Fields CEO Nick Holland said the company’s main focus now would, however, be to digest the recently acquired South Yilgarn assets, which accounted for some 400 000 oz/y of production.
“I think that you always have to be on the lookout for opportunities. We scour the globe all the time and look at opportunities where they present themselves. But if we don’t see value in an asset and they are not accretive to us, then we won’t buy them. The day of buying mines because they are increasing your ounce profile is gone.
“You have to do acquisitions that will enhance your cash flow. That is the key,” he commented.
The Yilgarn South assets comprised the Granny Smith, Lawlers and Darlot mines, which produced 452 000 oz of gold in 2012 and 196 000 oz in the first half of 2013. The projects have a combined 2.6-million-ounce reserve and a 1.9-million-ounce resource.
Holland noted that Gold Fields would focus on implementing its own brand of operational excellence at the newly acquired assets, with operations likely to resemble the company’s other Australian mines – Agnew and St Ives.
“We believe we can take that same model that has given success to our other mines and replicate it here,” he added.
The company’s operational review of the South Yilgarn projects might include a staff restructure, Holland said, adding that the company had cut its head count in Australia by some 24% over the last nine months as it restructured the company in the wake of failing commodity prices.
Meanwhile, Holland noted that the downward-spiralling gold price would not affect the company’s acquisition trail.
“One has to be contrarian in your views. When the gold price goes down, the herd marches over the hill. We have stayed in the nice green valley at the bottom. Before you can blink, the same herd will come charging back over the hill again.
“So it's important that we don’t rush where everyone else is going and to stay where we are and look for opportunities.”