Gold Road Resources has rejected a $2.1 billion takeover bid from South Africa’s Gold Fields (JSE: GFI), calling the offer “highly opportunistic” and significantly undervaluing the company. The Australian miner instead proposed buying out Gold Fields’ stake in their Gruyere gold mine joint venture, but the offer was declined.
Key Details:
Gold Fields’ bid sought full control of Gruyere, a low-cost, long-life mine in Western Australia, currently operated under a 50-50 JV.
Gold Road argued the offer ignored potential value from Gruyere’s underground expansion and did not reflect its growth prospects.
Gold Fields CEO Mike Fraser expressed confidence that shareholders would support the deal, citing discussions with common investors.
Market Context:
The rejection comes amid a gold sector consolidation wave, driven by record-high bullion prices.
Northern Star’s (ASX: NST) pending $3.3B acquisition of De Grey Mining (ASX: DEG)—where Gold Road is the largest shareholder—was a key factor in Gold Fields’ bid.
What’s Next?
Gold Fields remains optimistic about shareholder backing, while Gold Road insists its standalone strategy delivers greater value. The stalemate highlights diverging views on Gruyere’s future as gold M&A heats up.