Westgold becomes one of Australia’s top five gold miners following the completion of its acquisition of Karora company.
The merger will give the company a projected market capitalization of A$2.5 billion ($1.6 billion). The enlarged company will produce around 400,000 ounces of gold per year.
Westgold starts its new growth phase with a robust balance sheet and a plan focused on realising a potential A$281-million in corporate cost savings and A$20-million in operating synergies, MD and CEO Wayne Bramwell said.
“Today marks the next phase of Westgold’s evolution into a larger, unhedged and well-funded Australian gold producer. Our value proposition is significantly enhanced with an expanded team, quality operating assets and an enviable pipeline of exploration prospects across two of Australia’s most productive gold fields,” he said.
According to Karora chairperson and CEO Paul Huet, “the combination of Karora and Westgold to create a new Westgold is a transformative step that will ensure growth continues as an unhedged gold producer in a historically robust gold market”.
“The timing couldn’t be better in my opinion,” he added.
Hélène Tarin, Editor-in-Chief of the Asian Bureau, Rough&Polished
