Gold Fields Limited (Gold Fields) (JSE, NYSE: GFI), on Thursday August 22, 2019 sold its 9.9% interest in ASX-list Gold Road Resources for a total gross consideration of A$126.3m (US$85.5m).

The share sale, carried out by Gold Fields’ wholly-owned Australian subsidiary Gruyere Holdings, was conducted via an underwritten book-build process led by Macquarie Capital after the ASX market close on Thursday, 22 August 2019.

The sale is part of Gold Fields’ broader debt reduction strategy and capitalises on significant gains from its original share investments in Gold Road in 2017. Gold Fields acquired a total of 87.1m Gold Road shares in March and May 2017 at an average price of A$0.81/share for a total consideration of A$71m. Macquarie’s book-build yesterday sold the shares at a price of A$1.45/share, realising a return of 79% on the original investment.

The sale follows Gold Fields’ disposals of other non-core listed investments this year, namely its 19.9% shareholding in Maverix Metals, which it sold for US$68m, and a 19.9% shareholding in Red 5, which sold for A$30m.

Similar to these two deals, the funds from the Gold Road stake will be used to strengthen Gold Fields’ balance sheet by paying down its debt.

The multinational mining company said in a statement published on its website that it remained fully committed to its 50% interest in the Gruyere Joint Venture with Gold Road.

As manager and operator of the Gruyere Project, Gold Fields is pleased that the ramp-up of the Gruyere process plant is continuing to progress well, with key milestones being met. The plant is expected to achieve nameplate capacity in the next six to seven months.