Gold Fields kicks off $1.1B sale of stake in Northern Star

[Redator]

South Africa’s Gold Fields (JSE: GFI) is reportedly selling a A$1.1 billion ($720 million) stake in Northern Star Resources (ASX: NST), with JPMorgan running an auction process that began after Thursday’s market close.

Gold Fields inherited the holding through its $2.4 billion takeover of Australian gold miner Gold Road Resources (ASX: GOR), which won shareholder approval this week. 

The shares are being sold at a floor price of A$21.85 each, according to The Australian. This reflected a 2.7% discount to Northern Star’s last-traded price of A$22.66 before the sale was announced.

The divestment comes amid record-breaking gold prices and only days after Gold Fields cashed out its 19.5% stake in Galiano Gold (TSX: GAU), raising $151 million in a block trade. Under a December 2023 agreement tied to the sale of its 50% interest in the Asanko gold mine in Ghana, Galiano could still settle part of the acquisition cost in stock, potentially giving Gold Fields a way back into the Canadian-listed company.

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 the country.

Northern Star, valued at A$32.4 billion, has been one of the ASX’s standout mining success stories. Earlier this year, it expanded further with a A$5 billion ($3.3 billion) takeover of De Grey Mining.

Gold Fields also operates mines in South Africa, Ghana, Peru and Chile, and is advancing a development project in Canada.