In the latest twist to the Gold Fields-Yamana saga, Pan American Silver Corporation and Agnico Eagle Mines have launched their own bid for the Canadian miner, raising the stakes in the game. 

Gold Fields, whose $6.7-billion offer is an all-share one, spun the $4.8-billion cash-and-share counteroffer in the best possible light.  

“The emergence of another offer indicates that other mining companies see the inherent value in Yamana’s assets. As we have always said, the complementary nature of Yamana’s assets in the Gold Fields family will create significant near-term and long-term value for all shareholders. As a result, it is clear that Gold Fields’ offer remains strategically and financially superior to the joint offer,” Gold Fields’ CEO, Chris Griffith, said in a statement.  

Gold Fields also said that it “strongly believes that the terms of its agreement with Yamana for the acquisition of all of the Yamana shares are demonstrably superior to the joint offer”.  

Still, Yamana is forcing Gold Fields’ hand to sweeten the offer. It said in a statement that the Pan American-Agnico offer was “superior” to that of Gold Fields and gave the South African suitor five business days to make a superior offer of its own — even while the board is still recommending the Gold Fields’ offer.  

Visit Daily Maverick’s home page for more news, analysis and investigations

Gold Fields has offered 0.6 of its shares for each Yamana share held and it remains unclear if it wants to get bogged down in a bidding war as major shareholders have already expressed reservations about the deal.  

The rival offer includes $1.0-billion in cash, which may be an attractive and more liquid option for some Yamana shareholders. 

“The consideration consists of 153,539,579 common shares in the capital of Pan American; $1.0-billion in cash contributed by Agnico Eagle; and 36,089,907 common shares in the capital of Agnico Eagle (‘Agnico Eagle Shares’). Under the Binding Offer, each Yamana Share would be exchanged for approximately US$1.04 in cash, 0.1598 Pan American Shares and 0.0376 Agnico Eagle Shares, for an aggregate value of US$5.02 per Yamana Share based on the closing price of each Pan American Share and Agnico Eagle Share on November 3, 2022,” Pan American, the world’s leading silver producer, and Agnico Eagle said in a joint statement.  

The pair highlighted the “low transaction risk” of their offer, which they said would “create the leading precious metals producer in Latin America”. 

Yamana’s shareholders will deliver their verdict on Gold Fields’ offer on 21 November and Gold Fields’ shareholders will do so on 22 November. For the transaction to be approved, 67% of Yamana’s shareholders and 75% of Gold Fields’ shareholders must give it the green light.  

“Gold Fields will continue to work towards the completion of the transaction for the benefit of the shareholders of both companies in accordance with the arrangement agreement,” Gold Fields said. 

It remains to be seen how this all pans out. There are new players at the table and Yamana seems to be holding all the cards. DM/BM