Materials

Report by Global Mining Research

Just three months after GMR warned that NST looked vulnerable to a takeover, Gold Fields has made an unsolicited A$27/share bid at a 22% premium. They identified GFI as one of the more logical strategic buyers, and the combination scores highly on GMR’s M&A rationale framework given the asset overlap, potential synergies, combined production of 4-5Moz/year and greater Australian weighting for GFI. NST has rejected the proposal as opportunistic, but at just 0.58x spot P/NPV5 it remains one of the cheaper large-cap gold names despite producing more than 1.5Moz annually and owning high-quality assets. GMR now asks whether this is simply the opening salvo, while pressure will be on the new CEO to deliver KCGM and show value within the portfolio.

Report by Global Mining Research

David Radclyffe’s latest report examines the GHG reporting structures and emission reduction/mitigation plans for gold stocks covered by Global Mining Research (GMR). Interestingly, scope 1 & 2 GHG intensity increased by 35% for CO2-e t/GEO from 2015 to 2021, highlighting the challenges ahead for miners to achieve reduction targets. Within the GMR universe, Barrick continues to provide the clearest pathway. Newmont has a list of GHG initiatives, while GFI and NST provide timelines to 2030. Most other gold miners need to lift their game as few show a tangible commitment to GHG reduction.