The proposed all-stock transaction would create a company with headquarters in Johannesburg and 10 precious metal mines, primarily gold, spread across Australia, Brazil, Chile, Canada, Ghana and South Africa.at 0.6 of a Gold Fields share, implying a 33.8 per cent premium to the 10-day volume-weighted average price of Yamana’s shares of US$5.20. Gold Fields shareholders would own 61 per cent of the combined entity while Yamana shareholders would control 39 per cent.
Tariq added that he expects Yamana shares will continue to trade higher given the high premium to the merger in a sector where many deals have contained no premium. Last year, Agnico Eagle Mines Ltd. and Kirkland Lake Gold Ltd., both Toronto-based miners with operations centred in Canada, Some analysts have said that many mining executives believe larger scale will draw more investors to the sector, help protect companies against operational risks through diversification of assets and also create leaner, more profitable companies.
In 2021, Yamana produced about 1.1 million ounces of gold equivalent at US$1,030 all-in sustaining costs per ounce, with about 12 per cent of its production in silver. He also wrote that Yamana has an attractive growth pipeline, but Yamana’s MARA project, located in Argentina, has recently been the subject of scrutiny amid accusations of human rights abuses.Article content