GOLD Fields has approached Northern Star Resources about a potential takeover, said Bloomberg News citing people with knowledge of the matter.
A deal with Northern Star would significantly deepen the South African miner’s exposure to Australia’s gold deposits. However, Northern Star rebuffed the approach, said the newswire. Gold Fields is now weighing its next move, the people said,
Northern Star shares have fallen 17% this year in Sydney, leaving it valued at A$31.5bn ($22.1bn), while Johannesburg-listed Gold Fields has dropped about 9% over the same period, giving it a market capitalisation of $35.7bn.
A Gold Fields spokesperson declined to comment, and Northern Star did not immediately respond to queries made outside business hours, said Bloomberg.
Northern Star, headquartered near Perth, named a new CEO in July under pressure from activist investor Elliott Investment Management, which has spent the year criticising the company’s performance, pushing for a sale or asset divestments, and demanding changes to its board.
In June, chairman Michael Chaney told shareholders in a letter that Northern Star had fielded several approaches about combinations over the past year but that the timing was not right to sell.
The company has repeatedly cut its production guidance over the past year, with output constrained by problems at its Kalgoorlie processing plant in Western Australia, leaving its performance lagging that of its peers.
The Australian miner recently guided to production of between 1.5 million to 1.65 million ounces. In comparison, Gold Fields said it expected to hit the upper end of its production guidance for its 2026 financial year of 2.6 million oz (2.4 to 2.6 million oz) following a stand out performance from its Chile mine Salares Norte.
Gold Fields CEO of nearly three years Mike Fraser has never discounted the possibility of M&A in his plans but has described it as a third option after existing projects, and bolt on expansion. However, RMB Morgan Stanley said in June that as the “most acquisitive” South African gold stock, it said “value destructive M&A” was a downside risk.
