South Africa’s Old Mutual Asset Managers (Omam) is still weighing its options regarding the bid by Harmony Gold for Gold Fields, Omam resources fund manager Patrice Rassou said on Friday.
Omam had a 5,8% stake in Gold Fields on June 30 this year, according to the Gold Fields 2004 annual report, while the group also has a disclosed stake in Harmony, Rassou said.
“We have no view on the offer by Harmony for Gold Fields, at this stage. We are listening to the arguments from both Harmony’s and Gold Fields’ management. We feel it is fairly early in the process,” Rassou added.
On the merger of Gold Fields’ international mining assets with Canada’s Iamgold, Rassou said it is a “sensitive issue” and Omam will reserve its judgement, on behalf of its investors, for the moment.
A key issue for Omam is that the fund manager feels that not all the information has been forthcoming from Gold Fields and Harmony, Rassou said.
“We looking forward to all the information being placed on the table,” he added.
“Right now it is a fluid situation. We would like to be nimble, on behalf of our investments, as the information come outs,” Rassou said.
An example in point is a visit to Gold Fields’ Beatrix mine in South Africa on Wednesday, he added, where management indicated that it felt there is more potential for the gold mine than it has previously indicated.
Gold Fields spokesperson Willie Jacobz wasn’t available to confirm the mine visit.
The positive aspect of the Harmony bid is that it creates choice as to which management should run Gold Fields’ gold mines.
“The whole concept is positive for corporate South Africa,” Rassou said. — I-Net Bridge