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Gold Fields expects profit boost from Yamana deal break fee

Published: 2023-02-15 tag: commodities

JSE:GFI

South Africa`s Gold Fields on Wednesday said it expects its full-year profit to rise as much as 22% helped by a $202 million break fee it received after its deal to buy Canada`s Yamana Gold collapsed last year. 
Feb 15 (Reuters) - South Africa's Gold Fields (GFIJ.J) on Wednesday said it expects its full-year profit to rise as much as 22% helped by a $202 million break fee it received after its deal to buy Canada's Yamana Gold (YRI.TO) collapsed last year.


In a trading update, Gold Fields said it expects headline earnings per share (HEPS) - the profit measure commonly used in South Africa - of $1.16-$1.22 for the year to December 2022, compared to $1.00 the previous year.


"The increase in headline earnings is driven by the net proceeds relating to the Yamana break fee of US$202m," Gold Fields said.


Gold Fields in May 2022 agreed a deal with Yamana to acquire the Canadian miner in an all-share deal, but the acquisition was scuppered last November when Yamana agreed to a rival $4.8 billion takeover bid from Agnico Eagle (AEM.TO) and Pan American Silver Corp (PAAS.TO).


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As a result, Yamana was liable to pay Gold Fields a break fee - a financial penalty paid by a party responsible for a deal's collapse.


Gold Fields, which has operations in South Africa, Australia, Ghana, Peru and Chile, said it produced 2.4 million ounces of gold in 2022, up 3% from 2.34 million ounces the previous year and topping its revised guidance 2.31 to 2.36 million ounces.


Gold Fields' all-in sustaining costs (AISC) is expected to rise by 4% percent to $1,105 per ounce, below its guidance of $1,140-$1,180 per ounce.


The company will release its 2022 financial results on Feb. 23.


Canadian asset manager Brookfield is seeking to buy the 50% stake in Spain's renewable power company X-elio it does not already own, Spanish newspaper Expansion reported on Wednesday.