Bellevue may join the gold consolidation fray

Bellevue’s market value is currently $246 million.

Listed miner Bellevue Gold appears to be making efforts to find itself a buyer, with sources suggesting Canaccord Genuity is working as its adviser.

It is understood advisers from Canaccord have been in the market trying to drum up interest in the company with the hope of finding a suitor to either buy or recapitalise the gold operation.

Bellevue’s market value is currently $246 million and for the latest six months to December the group booked a loss. But the West Australian gold explorer is understood to have plenty of prospective ground that could be a future earnings windfall for any backer.

It counts WA’s historic Bellevue gold mine as one of its key assets. It is one of the country’s highest-grade mines, producing around 800,000 ounces of gold.

Analysts say the group is an obvious target for a larger competitor, such as the $2.1bn Saracen, Regis Resources, worth $2.4bn, or Gold Road Resources, with a $795m market value.

It comes as Australian gold miners remain eager to consolidate in an effort to build scale. Northern Star, OceanaGold, St Barbara and Evolution are listed gold miners all thought to be exploring opportunities for growth in the North American market.

Newcrest is also in a position to acquire more assets in the North American market, and while it is not as cashed up as other gold miners, it remains in a position to embark on deals where it offers scrip for assets.

However, the group continues to take a measured approach when it comes to acquisitions.

Meanwhile, a number of buyers are expected to line up for Pilbara Minerals’ Pilgangoora lithium project, estimated to be worth about $3bn, as a sales process through Macquarie Capital ramps up for a 50 per cent interest in the asset.

The recent sales process by Mineral Resources for its Wodgina project showed demand is strong for lithium assets, with US-based Albemarle paying $US1.15bn for a 50 per cent interest.

While Chinese groups are set to line up, others including Wesfarmers are expected to be in the mix, with the funds from the sale expected to offer Pilbara Minerals much needed cash for capital expenditure within its growth phase.

However, many large players in the lithium space have already amassed scale and are not eager to make further investments.