JOHANNESBURG - Bullion producer Gold Fields said on Friday it had sold its 9.9 percent interest in ASX-listed Gold Road Resources for A$126.3 million or US$85.5 million.
Gold Fields, one of the world’s largest gold mining firms, said the share sale, carried out by its wholly-owned Australian subsidiary Gruyere Holdings, was conducted via an underwritten book-build process led by Macquarie Capital after the ASX market closed on Thursday.
The sale is part of Gold Fields’ broader debt reduction strategy and capitalises on significant gains from its original share investments in Gold Road in 2017.
It follows the company's disposal of other non-core listed investments this year, namely its 19.9 percent shareholding in Maverix Metals which it sold for US$68 million and a 19.9 percent shareholding in Red 5 sold for A$30 million.
Similar to these two deals, the funds from the Gold Road stake will be used to strengthen Gold Fields’ balance sheet by paying down its debt.
"Gold Fields remains fully committed to its 50 percent interest in the Gruyere Joint Venture with Gold Road," the company said on Friday.
"As manager and operator of the Gruyere Project, Gold Fields is pleased that the ramp-up of the Gruyere process plant is continuing to progress well, with key milestones being met. The plant is expected to achieve nameplate capacity in the next six to seven months."