Gold Fields nears $2.4B Gold Road takeover ahead of vote

[Ben Graham]

South Africa’s Gold Fields (JSE: GFI) is closing in on its A$3.7 billion ($2.4 billion) takeover of Australia’s Gold Road Resources (ASX: GOR), with shareholders set to vote on the deal on September 22.

The Australian mid-tier gold miner agreed in May to the proposed acquisition and confirmed that a scheme booklet, detailing the plan for a Gold Fields subsidiary to acquire all its shares, has been registered with the Australian Securities and Investments Commission. The company’s board has unanimously recommended the offer.

The deal would give Gold Fields full ownership of the Gruyere mine in Western Australia, where it already holds a 50% stake and serves as operator. The joint venture produced 287,000 ounces of gold in 2024, accounting for roughly 11% of Gold Fields’ free cash flow from extraction last year.

Gold Road also controls the adjacent Yamarna project, various other Australian exploration assets, and shareholdings in several ASX-listed companies, including Northern Star, Yandal Resources, Iceni Gold and Premier1 Lithium.

The acquisition requires approval from 75% of Gold Road shareholders. If successful, it will be the third ASX 200 gold company acquired in 2025, following Northern Star Resources’ A$6 billion purchase of De Grey Mining and and Ramelius Resources’ A$2.4 billion deal for Spartan Resources.

Gold Fields is increasingly focused on Australia, home to four of its nine global mines: Gruyere, St Ives, Granny Smith and Agnew. In 2024, these operations delivered 48% of total production and free cash flow, generating 992,000 ounces of gold and $552 million. Nearly all of the company’s $72 million exploration budget last year was spent in Australia.