After raising R2.3 billion from shareholders to pay down debt, Gold Fields fell the most in a month, stock declining 10%, after the company sold 38.9 million new shares at R59.50 each - a 6% discount to the 30-day average.
According to Gold Fields, the company intends to use the money to pay down a revolving credit facility and reduce its net debt from 1.4 times to 1.2 times. Gold Fields used the facility to buy back $148 million of a $1 billion bond bearing 4.875% interest earlier in 2016.
The company's stock climbed 54% this year to R65.05, as gold rose 19% and it made progress in developing its South Deep mine, which holds most of its reserves.
- Stay connected, up to date and in the loop on what is happening in the world of finance and keep track of newly published expert insights and interviews with CFOs and CEOs. Become an online member and receive our newsletter, follow us on Twitter, like us on Facebook and join us on LinkedIn.
