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Gold Road Resources, Australia's Gold Fields rival, has beaten Gold Fields to a record high.

Gold Road Resources, Australia's Gold Fields rival, has beaten Gold Fields to a record high.

Gold Road Resources shares reached a new high on Tuesday. This was a day following the rejection of Gold Fields' $2.1billion acquisition offer, which they deemed to be a significant undervaluation.

Gold Road Resources stock rose as high as 15.5%, reaching a record-high of A$2.830 in the morning. As of 0145 GMT, it was trading at a 13.9% gain.

Gold Fields made an offer to the Australian explorer on Monday after market hours, which it rejected because it was "highly opportunistic".

Gold Road's offer would have paid A$3.05 per share ($1.92) to Gold Road shareholders.

This year, gold miners have been consolidating as they try to increase their reserves in a period of high bullion price.

Jessica Amir is a Moomoo trading platform analyst. She said that after a bid has been rejected, the company will usually come back with a more lucrative second bid.

Gold Fields offered to consolidate control of the long-lasting, cost-efficient Gruyere Gold Mine in Western Australia. The mine is currently operated in collaboration with Gold Road Resources.

Gold Road stated that the offer "attributes no value to the potential underground extension of the Gruyere Mine."

Gold Road made a counter-offer to buy out the partner's shares in the mine, but the Johannesburg-based miner rejected it.

Jefferies stated that "the announcement shows the degeneration of the relationship, to the point that grievances are being made public."

Mike Fraser, Gold Fields CEO, said that Northern Star Resources' impending $3.3 billion purchase of De Grey Mining (which counts Gold Road as the top shareholder) acted as an catalyst for Gold Fields bid. ($1 = 1.5898 Australian dollars)

(source: Reuters)