Ravenswood Gold Mine owners kick off $2bn sale campaign

Gold hit a record of $US2685.49 in September. Picture: AFP

EMR Capital and GEAR are understood to have fired the starting gun for the $2bn sale process of its Ravenswood Gold Mine, with promotional material now in the market.

It is understood that flyers have hit the desks of prospective suitors in recent days.

Of the potential Australian bidders, the name that continues to surface the most is Regis Resources, but many are doubtful that Regis will be prepared to meet its price expectations, when other foreign suitors would be more likely to do so. Among them is Harmony Gold Mining out of South Africa that is understood to have expressed interest in Ravenswood, which is up for sale through Azure Capital and UBS.

The sale process will run through the Christmas period and into the new year.

Ravenswood is half-owned by Golden Energy Resources (GEAR), a Singapore company backed by Indonesian money, and EMR Capital.

The understanding is that both owners are keen to divest their interests. The owners have seen strong interest on the back of the rising gold price.

Gold hit a record of $US2685.49 in September.

The Ravenswood mine, 130km south of Townsville, is believed to be performing strongly and delivering at least 200,000 ounces per annum.

EMR Capital, chaired by Owen Hegarty, is also working with investment banks Macquarie and Bank of America to sell its valuable Kestrel coal mining asset. Kestrel is jointly owned by Adaro Energy, which has pre-emptive rights with its 48 per cent holding, but is expected to be a seller if the price is right.

EMR Capital led a consortium that purchased Ravenswood in 2020 from Resolute Mining for up to $300m. It has substantially grown its production since through heavy investment, which was needed for the mine’s life extension to at least 15 years from 2022.

EMR Capital, run by former Rio Tinto executives and former mining investment banking experts, has 10-year funds. It describes itself as a private equity firm specialising in investments in listed and unlisted resource companies with iron ore, coal, potash, coking coal, copper or gold products and mining at various stages of development.