FILE PHOTO: Gold Fields on Thursday sold its shareholdings in two of its non-core investments, Maverix Metals and Red 5.

JOHANNESBURG  - Gold Fields on Thursday sold its shareholdings in two of its non-core investments, Maverix Metals and Red 5, for combined proceeds of U.S.$88 million, in line with its key strategic objective of paying its debt.

The company said both positions were sold at a significant premium to the look-through acquisition costs.

Gold Fields completed the sale of its 19.9 percent shareholding in Toronto-listed gold and royalty streaming company Maverix. The sale of the shares – processed through a series of private market transactions over the past four weeks – raised C$91.4 million (US$68 million).

Gold Fields retains 4.125 million Maverix warrants, equivalent to a 3.68 percent interest in the company on a partially-diluted basis. 

The miner sold the bulk of its royalty portfolio to Maverix in December 2016 in return for the 19.9 percent shareholding.

In April 2019, Gold Fields sold its 247 million shares in Australian Securities Exchange-listed mining company Red 5 – equivalent to 19.9 percent of its total shareholding – at A$0.12/share for a total consideration of A$29.6 million (U.S.$20 million). 

Gold Fields had acquired the stake at A$0.05/share in October 2017 when it sold its Darlot gold mine in Western Australia to Red 5.

Gold Fields chief executive, Nick Holland said one of their key objectives was to reduce the amount of debt on the company's balance sheet. 

In addition to the restructuring of Gold Fields’ debt announced over the past few months, using the proceeds from the sales of our non-core investments to pay down debt will further improve liquidity."

- African News Agency (ANA)