Gold Fields (JSE: GFI) has initiated the sale of its A$1.1 billion ($720 million) stake in Northern Star Resources (ASX: NST), with JPMorgan overseeing an auction process that kicked off after Thursday’s market close.
The South African miner inherited the stake following its recent $2.4 billion acquisition of Gold Road Resources (ASX: GOR), approved by shareholders earlier this week. Shares are being offered at a floor price of A$21.85 each — a 2.7% discount to Northern Star’s last traded value of A$22.66, according to The Australian.
The divestment comes at a time of record-breaking gold prices and just days after Gold Fields exited its 19.5% stake in Galiano Gold (TSX: GAU), raising $151 million through a block trade. Under terms of its 2023 deal to sell its 50% interest in Ghana’s Asanko mine, Galiano may still pay part of the acquisition cost in stock, which could allow Gold Fields to regain a position in the Canadian-listed company.
Australia has become the company’s main production hub, hosting four of its nine operating mines — Gruyere, St Ives, Granny Smith, and Agnew. In 2024, these sites delivered nearly half of total output, producing 992,000 ounces of gold and $552 million in free cash flow. Almost all of Gold Fields’ $72 million exploration budget was also directed toward Australia.
Northern Star, valued at A$32.4 billion, has been a standout performer on the ASX, further strengthening its portfolio this year through a A$5 billion ($3.3 billion) takeover of De Grey Mining.
Meanwhile, Gold Fields maintains a global footprint with mines in South Africa, Ghana, Peru, and Chile, alongside a development project in Canada.