0125 GMT - The price offered by South Africa's Gold Fields to acquire Australia's Gold Road Resources looks fair to Macquarie. The offer values Gold Road's equity at roughly A$3.7 billion, and implies an enterprise value of A$2.6 billion. The deal will see Gold Fields wholly own the Gruyère gold mine in Western Australia. Macquarie says the offer implies a gold price of A$3,878/oz, which represents a 21% premium to its forecast of long-term prices of the precious metal. "It also takes the risk out of Gold Road's execution of Gruyère's underground option, which we have included in our valuation for the first time, as well as offering a tax effective way of monetizing Gold Road's Northern Star holding, as opposed to a block sale," Macquarie says. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
May 05, 2025 21:25 ET (01:25 GMT)
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