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Gold Fields says deals too expensive
David McKay
Posted: Thu, 29 Sep 2005
[miningmx.com] -- GOLD Fields was more likely to grow through brownfields expansion rather than acquisitions which were too expensive. “Across the globe, value-adding deals are few and far between,” said Gold Fields CEO, Ian Cockerill. “We prefer to grow off our own platform”.
The company, the world’s fourth largest gold producer, had earmarked output growth of 1.5 million oz/year by 2009 of which 600,000 oz/year had not yet been sourced. It produced 4.5 million oz of gold in the 2005 financial year.
Gold Fields has been linked with Western Areas, a Johannesburg listed company that owns 50% of the South Deep project on the west Rand. Gold Fields’ Kloof mine is contiguous with South Deep and could accelerate its development through existing infrastructure.
“We are completely and utterly agnostic on where we make acquisitions. But we need to make money,” said Cockerill.
“It’s been difficult to make money in South Africa. At [a rand gold price] R95,000/kg, life has become a tad easier.”
About 900,000 oz/year of its growth target could be met from a combination of brownfields expansion and new mining developments at its Australian, African and South American properties. However, a further 600,000 oz/year had been earmarked for acquisitions in Gold Fields’ Denver Gold presentation.
 It’s been difficult to make money in South Africa 
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