Northern Star rejects $39 billion Gold Fields takeover amid higher costs and lower output
Northern Star Resources reported a 19% decline in gold production to 364,000 ounces and a 20% rise in cash cost to $3,217 per ounce for the third quarter. The company also said net mine cash flow was $210 million and kept its full‑year production guidance unchanged. It rejected a $39 billion takeover proposal from Gold Fields, saying the offer undervalues the business. Shares of Northern Star fell to $24.62 after the announcement.
Why it matters
The rejection leaves Gold Fields without the acquisition and may delay its growth plans, while the cost increase and lower output pressure Northern Star’s profitability. The share price drop reflects investor concern over the higher cost base and the missed deal.
Key facts
- 1Gold Fields made a $39 billion takeover bid for Northern Star Resources. afr.com
- 2Northern Star’s gold output fell 19% to 364,000 ounces in Q3. grafa.com
- 3Cash cost rose 20% to $3,217 per ounce in Q3. grafa.com
- 4Net mine cash flow for the quarter was $210 million. grafa.com
- 5Northern Star rejected the $39 billion offer, citing undervaluation. grafa.com
- 6Shares fell to $24.62 after the results were released. grafa.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.