By: Energy capital & power

JSE-listed Gold Fields has entered into a binding agreement to acquire Australian gold producer Gold Road Resources in a deal that values the latter’s equity at A$3.7 billion.

The transaction – which is still subject to approval by Gold Road shareholders and Australian regulators – is expected to be finalized in the second half of 2025. Upon completion, Gold Road will be delisted and become a wholly owned subsidiary of Gold Fields.

The deal expands Gold Fields’ presence in Australia, adding the operating Gruyere gold mine and highly prospective exploration licenses in the Yamarna Greenstone Belt to its portfolio.

“The consolidation of our ownership in the Gruyere gold mine is firmly aligned to our strategy of improving portfolio quality through investment in high-quality, long-life assets and is immediately additive to the Group’s cash generation,” stated Mike Fraser, CEO, Gold Fields.

Meanwhile, the Yamarna licenses are expected to support Gold Fields’ efforts to expand production, reduce operational costs and extend the mine life at Gruyere through the development of satellite deposits leveraging existing infrastructure.