Management shifts raise prospect of Aurelia as target

Aurelia Metals could be an attractive takeover prospect. Picture: AFP

Management departures at Aurelia Metals have some pegging the Australian listed group as the next takeover target in the gold mining space.

The company’s market value is about $160m yet the net present value is about $400m which makes the company look like a bargain.

Analysts believe the most obvious buyer is fellow Australian listed gold miner Aeris Resources with a $373m market value. One of the reasons the company appears vulnerable is that it has lost key members of management.

Aurelia announced on November 18 that chief executive Dan Clifford was stepping down and that Andrew Graham was the interim boss under the mentorship of director and former St Barbara boss Bob Vassie. Recently, Martin Cummings was also appointed chief financial officer.

There is a theory that the company perhaps may even place itself up for sale as it continues to face pressure to return value to shareholders.

Aurelia, chaired by former Oil Search boss Peter Botten, has three mines in NSW, including The Peak and Hera Mines in the Cobar Basin in western NSW, and the Dargues Mine is in southeastern NSW.

It has The Federation project, a proposed underground gold, zinc, copper and lead mine development, 10km south of its Hera Mine

Aeris owns the Triton copper mining project also in the Cobar area.