KEY POINTS
- Gold Fields acquires Osisko Mining’s stake, securing full ownership of the Windfall gold project in Quebec, ending a co-ownership arrangement.
- The company invested $1.39 billion in the acquisition, affirming its investment-grade credit rating and strong financial position post-transaction.
- Windfall is projected to yield 300,000 ounces of gold annually at low costs, with operations expected to begin by late Q4 2026 or early 2027.
Gold Fields, one of the world’s largest gold mining firms based in South Africa, has finalized its acquisition of Osisko Mining’s interest in the Windfall gold project in Quebec, concluding the previous co-ownership agreement. This strategic move marks a significant milestone for the Johannesburg-based mining company, enabling it to take full control of one of the industry’s most promising gold assets.
Strategic investment reflects financial strength
In a move that underscores its robust financial health, Gold Fields, listed on both the Johannesburg Stock Exchange and the New York Stock Exchange, disbursed $1.39 billion for the acquisition, net of cash received from the settlement. The company reaffirmed its investment-grade credit rating, indicating its strong financial footing post-transaction.
“Deposits of the scale and quality of Windfall, particularly in a premier jurisdiction like Quebec, are exceedingly rare,” stated CEO Mike Fraser. He emphasized that this acquisition is a pivotal step in enhancing the quality of Gold Fields’ asset portfolio.
According to Osisko’s December 2022 feasibility study, the Windfall project is expected to generate around 300,000 ounces of gold annually, with an all-in sustaining cost estimated at $758 per ounce. This positions Windfall among the lowest-cost operations in Gold Fields’ portfolio, with a projected lifespan of ten years.
Historical investments and future developments
As reported by Mining Weekly, Osisko Mining had previously invested over $576.42 million in the Windfall project before establishing the joint venture in May 2023. Following that, Gold Fields and Osisko injected an additional $113.84 million, bringing the total investment to over $720.49 million.
Currently, the focus is on securing environmental permits for full-scale construction, alongside ongoing engagement with local communities to finalize an impact benefit agreement with the Cree First Nation of Waswanipi and the Cree Nation government.
Gold Fields expects to initiate gold production at Windfall by late Q4 2026 or early 2027, marking a significant step forward in its growth strategy and commitment to sustainable mining practices.
