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Gold Fields expects profit boost from Yamana deal break fee

Gold Fields said it produced 2.4 million ounces of gold in 2022, up 3% from 2.34 million ounces the previous year and topping its revised guidance 2.31 to 2.36 million ounces

South Africa’s Gold Fields has said it expects its full-year profit to rise as much as 22% helped by a US$202 million break fee it received after its deal to buy Canada’s Yamana Gold collapsed last year.

In a trading update, Gold Fields said it expects headline earnings per share (HEPS) – the profit measure commonly used in South Africa – of US$1.16-US$1.22 for the year to December 2022, compared to US$1.00 the previous year.

“The increase in headline earnings is driven by the net proceeds relating to the Yamana break fee of US$202m,” Gold Fields said.

Gold Fields in May 2022 agreed a deal with Yamana to acquire the Canadian miner in an all-share deal, but the acquisition was scuppered last November when Yamana agreed to a rival $4.8 billion takeover bid from Agnico Eagle and Pan American Silver Corp.

As a result, Yamana was liable to pay Gold Fields a break fee – a financial penalty paid by a party responsible for a deal’s collapse.

Gold Fields, which has operations in South Africa, Australia, Ghana, Peru and Chile, said it produced 2.4 million ounces of gold in 2022, up 3% from 2.34 million ounces the previous year and topping its revised guidance 2.31 to 2.36 million ounces.

Gold Fields’ all-in sustaining costs (AISC) is expected to rise by 4% percent to US$1,105 per ounce, below its guidance of US$1,140-US$1,180 per ounce.

The company will release its 2022 financial results on 23 February.

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Source
Reuters
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