XML 425 R22.htm IDEA: XBRL DOCUMENT v3.24.1
Discontinued operation
 12 Months Ended
Dec. 31, 2023
Discontinued Operation [Abstract]  
Discontinued operation Discontinued operation
United States Dollars
Figures in millions unless otherwise stated
2023
2022
2021
Asanko Gold
– Asanko Gold – earnings
28.0
13.0
23.4
– Asanko Gold – impairment1
(46.9)
—
(52.8)
(Loss)/profit from discontinued operation
(18.9)
13.0
(29.4)
1 As a result the sale transaction discussed below, the investment in Asanko has been classified as an asset held for sale and the investment is
required to be measured at the lower of carrying value or fair value less costs to sell. Management determined the fair value less costs to sell
based on the consideration to be received per the sale agreement. The assumptions used in the determination of the fair values of the deferred
and contingent considerations are as follows:
•The share consideration was calculated as 28.5 million Galiano shares at a share price of US$0.92 at 31 December 2023;
•US$25 million and US$30 million deferred consideration discounted using a rate of 7.9%; and
•US$30 million contingent consideration discounted using a rate of 15.1%.
    The fair value has been allocated first to the Asanko redeemable preference shares based on the fair value of the preference shares using the
expected redemption period. The residual amount after deducting the fair value of the preference shares from the total fair value of the
consideration was allocated to the Asanko Gold equity-accounted investee, which resulted in an impairment of US$46.9 million (2022: US$nil and
2021: US$52.8 million ) for the year ended 31 December 2023.
On 21 December 2023, Gold Fields announced the divestment of its 45% shareholding in Asanko Gold (both the
preference shares and equity-accounted investee) to the joint venture partner Galiano Gold for a total consideration
of US$170 million. Gold Fields will also receive a 1% net smelter royalty on future production from the Nkran deposit,
the main deposit at the mine.
The Asanko mine is currently owned 45% each by Gold Fields and Galiano Gold, with Galiano managing the mine.
The Government of Ghana holds the remaining 10%.
The transaction will be settled by Galiano to Gold Fields through a combination of upfront, deferred and contingent
consideration as follows:
•US$85 million which will be settled with US$65 million in cash and US$20 million in Galiano shares on completion
of the transaction;
•US$25 million to be paid on 31 December 2025;
•US$30 million to be paid on 31 December 2026; and
•US$30 million plus a 1% net smelter royalty to be paid once more than 100,000 ounces of gold is produced from
the Nkran deposit. The royalty is capped at a volume of 447,000 ounces of gold production from the deposit.
Gold Fields currently has a 9.8% shareholding in Galiano and the share purchase agreement limits the shareholding
that Gold Fields can raise this to 19.9%. Should the market value of Galiano shares be less than the requisite
US$20 million, Galiano will make up the difference with an additional cash payment.
The share of results of equity investee of Asanko Gold have been presented as a discontinued operation in the
consolidated financial statements and the comparative income statement have been presented as if Asanko Gold
had been discontinued from the start of the comparative years. Refer notes 15 and 18 for further details.
The transaction was subject to a number of conditions and was concluded on 4 March 2024 with the receipt of
US$65 million in cash and 28.5 million in Galiano shares.