Major Beaconsfield stake up for sale

The largest stakeholder in Tasmania's Beaconsfield Gold is set to sell its shares in the company, Beaconsfield announced in a statement this week.

The largest stakeholder in Tasmania’s Beaconsfield Gold is set to sell its shares in the company, Beaconsfield announced in a statement this week.

According to the statement, Malaysian Smelting Corporation (MSC) plans to sell its 22.1% stake in Beaconsfield in order to focus on its core tin mining and smelting operations.

Beaconsfield has a current market capitalisation of $52.89 million, which values the MSC stake at about $11.7 million.

Beaconsfield chairman Bill Colvin said that the ideal outcome would be for another company to buy the entire stake and that he expects “strong interest” in the shares.

“It is not every day a stake of this size in a 70,000 ounce per annum, profitable gold mine comes to the market,” he told The Financial Review.

“If we could replace MSC with another cornerstone investor who was supportive of the growth strategy we would be delighted.”

Earlier this week Beaconsfield announced a net profit of $9.1 million for 2009, which represents a significant turnaround from the $33 million loss it suffered in 2008.

The 2009 profit was the company’s first in four years.

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