Evolution Mining may sell gold mine

Speculation is growing over Evolution Mining’s plans to sell its Pajingo gold mine in Queensland in an effort to focus on more high quality assets and trim down its portfolio.

The $3 billion company has a portfolio of eight mines and made a voluntary debt repayment of $35 million last year, reducing their overall debt, reflecting their efforts to reduce costs and improve efficiency.

Operations at Pajingo mine began in 1986 and it is estimated to have three years of mining life left, producing up to 65,000 ounces of gold for FY16. The mine has become of less interest to the company after the acquisition of the Mungari and Cowal gold mines last year. In the first half of the 2016 financial year it only produced 5 per cent of net mine cash flow.

Strong speculation was felt at a recent mining conference that investment bankers had been checking out prospective buyers for the mine, which is expected to sell for under $100 million, in a report by The West Australian.

Potential buyers include Resolute, Saracan Mineral Holdings, and St Barbara.

North Star has also begun efforts to divest their assets, believed to be looking to sell its Plutonic mine in WA.

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