Banks are believed to have been tapped for the possible sale of Newcrest’s Hidden Valley PNG mine
The Australian | April 17, 2016
Investment banks Citi or Credit Suisse are believed have been engaged by the listed gold miner Newcrest to sell its stake in the Hidden Valley asset in Papua New Guinea.
The official line is that the company has engaged advisers to explore various options for the mine, which could include further spending on the operation to extract more value or a divestment.
However, the appointment by an investment bank typically creates the impression around the market that the asset is for sale.
It is thought to be worth tens of millions of dollars rather than hundreds of millions, sources told DataRoom.
China’s Xijin and South Africa’s Gold Fields were been named as two of the most likely candidates to bid for Newcrest’s share of the mine earlier this year.
The mine, one of three that it owns in PNG, has struggled to turn a profit since it started producing gold for sale in 2010, and some question whether the asset, which produces more silver than gold, is shut down rather than sold due to its troubled history.