Northern Star thought most likely as suitors assess Bellevue Gold deal

A number of parties have made informal approaches to Bellevue Gold about a sale. Picture: Bellevue Gold

Evolution Mining, Northern Star and Regis Resources are three of the groups believed to be in a data room considering a deal to buy Bellevue Gold, sources say.

Exactly how serious the parties are remains to be seen, with sources suggesting most would look at the business to assess what was on offer as an educational ­exercise at the very least.

However, of those, Northern Star was thought to be the most likely buyer.

Offshore groups were also taking a look.

Given that Bellevue Gold was out of the money on its hedge book, it made a deal difficult to stack up, market experts say.

Already, Bellevue, advised by UBS, has said it has had informal approaches, and rather than running a formal sale process, it is offering certain parties access to a data room.

The $1bn gold company that has the Bellevue Gold Project in Western Australia is considering a sale after downgrading its production guidance, closing out part of its goldmining hedge book, raising equity and flagging changes to the group’s board and executive team.

The gold price at more than $5000 is almost double what it was hedged at, and Bellevue recently raised more money to reduce its hedge book by greater than 40 per cent.

Australian peers are now interested in buying Bellevue to secure more production at a time when gold’s price increases show no sign of abating, rather than for synergies.

The management of Regis Resources is conservative and is bidding for the EMR Capital-backed Ravenswood goldmine near-by.

It would have capacity to buy one or the other, but not both.

Northern Star would be one of the only Australian groups with synergies, because it could shut down the Bellevue Gold mill and feed ore into its WA Thunderbox gold facility, which is under-­utilised, say experts.

Northern Star’s challenge is that it has just purchased De Grey Mining.

Operations have been plagued with challenges. After telling the market last year a raise would not be needed, it went cap in hand to investors for up to $175m through Macquarie, Canaccord and UBS at $1.55 a share, sending its share price 20 per cent lower.

The annual guidance for the 2025 financial year has been revised down to 129,000-134,000 ounces compared to more than 150,000 ounces previously.

The production outlook for the 2026 financial year is anticipated to be about 150,000 ounces, with a future expansion of the processing plant on hold.

In the 2027-29 financial years it is targeting 190,000 ounces a year compared to 250,000 earlier.