GENESIS Minerals is considering selling or spinning off some of its Australian mines once its takeover of Vault Minerals is completed, Bloomberg reported.
Executive chair Raleigh Finlayson said on Wednesday the company was conducting a strategic review of the enlarged portfolio.
“We’re in a strategic review at the moment,” Finlayson told a press conference, adding that Genesis had a “whole bunch of options”.
These included outright mine sales or placing some assets into a separately listed company outside Australia’s top 100 companies.
Finlayson said there was “an unhealthy number of gold companies” outside the top 100.
Genesis and Vault announced their combination in July and expect to complete the transaction by late next month.
The two companies have a combined market value of about A$14.5bn ($10.1bn) and extensive operations across Western Australia’s Goldfields region.
Their combined portfolio includes five major mines as well as shared infrastructure.
Once the transaction is completed, the enlarged Genesis would rank among Australia’s biggest gold producers, with annual output of about 700,000 ounces.
The strategic review suggests Genesis may seek to simplify that portfolio after the deal, potentially retaining its larger or more attractive operations while finding new owners or structures for non-core assets.
I’d trim the final paragraph if you want this kept strictly to the Bloomberg facts, because “simplify the portfolio” and “non-core assets” are reasonable interpretation rather than wording explicitly contained in the source.