Gold Fields Yamana deal will create world’s No. 4 mining giant

by Alfred Newman

South Africa-based Gold Fields Ltd. on Tuesday May 31, 2022 announced a $6.7-billion acquisition of Toronto-based Yamana Gold Inc., a combination that would turn two senior bullion miners into the world’s fourth largest producer. 

The proposed all-stock transaction would create a company with headquarters in Johannesburg and 10 precious metal mines, primarily gold, spread across Australia, Brazil, Chile, Canada, Ghana and South Africa. 

Under the terms of the deal, Yamana shares are valued at 0.6 of a Gold Fields share, implying a 33.8-per-cent premium to the 10-day volume-weighted average price of Yamana’s shares of US$5.20. Gold Fields shareholders would own 61 per cent of the combined entity while Yamana shareholders would control 39 per cent. 

Related archived intel:

The following is world’s 10 biggest gold mining companies based on 2020 production

Image thumbnail: Producer pouring gold bars.

The following is a list of the top gold miners in the world based on their 2020 production: 

  1. Newmont Denver Colorado United States NYSE:NEM 5.88 moz (-3.45%)
  2. Barrick Gold Canada TSX:ABX 4.84 moz (-3.39%)
  3. Polyus Russia RTC:PLZL 2.87 moz (-2.71%)
  4. AngloGold Ashanti*** South Africa JSE:ANG 2.81 moz (-14.33%)
  5. Kinross Gold Canada TSX:K 2.38 moz (-5.93%)
  6. Gold Fields South Africa JSE:GFI 2.13 moz (+4.41%)
  7. Newcrest Mining Australia ASX:NCM 2.06 moz (-11.59%)
  8. Agnico Eagle Canada TSX:AEM 1.73 moz (-2.81%)
  9. Polymetal International Russia LSE:POLY 1.40 moz (+6.87)
  10. Harmony Gold, South Africa JSE:HAR 2.38 moz (0.00%) 

* Does not include equity ownership of other producers.

** Ranking excludes Uzbek state-owned enterprise Navoi Mining & Metallurgy Combinat, owner of one of the world’s largest gold mines in Muruntau, as the reliability of its information is unconfirmed (reports have it having produced ~2 million ounces of gold in 2020).

*** Reported production from continued AGA operations; production figures were adjusted to reflect a company’s ownership % as of December 31, 2020 (i.e. AngloGold sold some assets to Harmony in October). 

In total, thirteen companies saw their production surpass the one million ounce mark in 2020; Canada’s Kirkland Lake Gold (1.37moz), Australia’s Northern Star Resources (1.01moz) and the UK-based Nord Gold (1.01moz). Sibanye-Stillwater almost made the list with 0.98moz of gold. 

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Content above may contain forward-looking statements regarding future events that involve risk and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual events or results. Articles, excerpts, commentary and reviews herein are for information purposes and are not solicitations to buy or sell any of the securities mentioned.

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