BofA-Gold Fields A Gold Road to Gold Fields-20250505

Sensible M&A: $2.4 bn agreed deal to acquire Gold Road

Gold Fields (GFI) announced that it has entered a binding agreement to acquire GoldRoad resources (GOR). GOR’s main asset is a 50% stake in the Gruyere JV, an existingpartnership with GFI which GFI operates. Beyond this, GOR also owned a 17.2% stake inDeGrey mining, a company which itself has just been acquired by Northern Star in ashare deal. The A$3.40/share offer is a 43% premium to the undisturbed price of GORon March 21 st and c. 12% premium to GFI’s previous offer on March 24 th . According toGFI, this is its “best and final” offer. Offer is unanimously recommended by board ofGOR. Maintain Buy recommendation on GFI, PO ZAR480. Shares trade at 1x P/NPV.Through-the-cycle, higher-quality gold mining companies trade on up to 1.5-2x P/NPV.