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Gold Fields (GFI) Sells Its Interest in Asanko JV to Galiano

Gold Fields Limited GFI announced the completion of the previously announced sale of its interest in the Asanko joint venture in Ghana to its joint venture partner Galiano Gold Inc. GAU and its subsidiaries. This move aligns with Gold Fields' broader strategy to optimize its portfolio and focus on core assets.

On Dec 22, 2023, the company announced that GAU would pay another Gold Fields subsidiary, Gold Fields Orogen Holding  Limited  ("GF Orogen") and an affiliate an aggregate cash purchase price of $150 million.

The initial cash consideration of $65 million was paid on the closing date of the transaction. The transaction was closed on Mar 4, 2024. Galiano will also pay the first deferred consideration of $25 million on or before Dec 31, 2025, and a second deferred consideration of $30 million on or before  Dec 31, 2026.

Gold Fields will also receive $30 million when 100,000 ounces of gold are produced from the Nkran deposit, which is part of the Asanko gold mine. It will gain a 1% net smelter returns royalty on the Nkran Deposit, beginning with the production of 100,000 ounces of gold and ending with the production of 547,000 ounces.

GFI received $20 million in consideration from the issuance of Galiano shares.

Marsh Holdings Inc., a wholly-owned subsidiary of Gold Fields, held 21,971,657 common shares of Galiano, accounting for approximately 9.8% of the issued and outstanding shares. On the closing date, GF Orogen obtained the ownership of the 28,500,000 Galiano shares included in the share consideration.

Marsh and GF Orogen now possess 50,471,657 Galiano shares, which accounts for about 19.9% of the issued and outstanding shares of Galiano.

Price Performance

In the past year, Gold Fields’ shares have gained 73.7% compared with the industry’s growth of 16%.


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Zacks Rank & Stocks to Consider

The company currently has a Zacks Rank #4 (Sell).

Some better-ranked stocks from the basic materials space are Ecolab Inc. ECL and Carpenter Technology Corporation CRS. ECL sports a Zacks Rank #1 (Strong Buy) at present, and CRS has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Ecolab’s 2024 earnings is pegged at $6.39 per share, indicating an increase of 22.7% from the prior year’s reported number. It has an average trailing four-quarter earnings surprise of 1.7%. ECL shares have gained 41.8% in a year.

The Zacks Consensus Estimate for Carpenter Technology’s 2024 earnings is pegged at $4.00  per share. The consensus estimate for 2024 earnings has moved 1% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 14.3%. CRS shares have gained 33.5% in a year.


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Galiano Gold Inc. (GAU) : Free Stock Analysis Report

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