Australia's second-biggest gold miner by market capitalisation, Evolution Mining, says it may sell the Edna May gold mine, one of its two wholly owned gold mines in Western Australia.

In a statement to the ASX on Tuesday, Evolution said it had "recently received a number of offers" for the mine, about 310 kilometres east of Perth, and was considering "whether the potential sale of the mine is in the best interests of Evolution shareholders and stakeholders".

The company said it would "progress" offers for the mine and update the market if a binding agreement for a sale was reached.

Royal Bank of Canada analysts have given the Edna May gold mine a net present value of $125 million.

Rumours of a sales process for the mine, which produced 8 per cent of Evolution's total gold production last financial year, started several months ago.

Evolution said the mine produced 70,188 ounces of gold in fiscal 2017 and achieved an earnings before interest, tax, depreciation and amortisation (EBITDA) margin of 18 per cent.

The gold miner also said: "Evolution has consistently stated that a key objective of its corporate strategy is to increase the quality of its asset portfolio over time. This includes continuously evaluating a wide range of acquisition and divestment opportunities."

The news was followed by an analysts' report from Credit Suisse, which was positive about a possible sale.

The report, led by research analyst Michael Slifirski, said Edna May was a foundation asset of Evolution's that allowed the company to grow.

"The asset has served its purpose and is now not a material part of the portfolio by earnings, reserves or production, but attracts a disproportionate share of attention due its history of disappointing expectation. It has previously been considered for divestment," he said.

Mr Slifirski said the Edna May mine contributed 3 per cent of Evolution's group EBITDA in fiscal 2017, "but consumed net cash after becoming waste-bound, running short of ore, while reinvesting to introduce higher-grade underground production to supplement the lower-grade open pit ore".

If the WA gold mine was sold, "we expect that the proceeds would be used to further strengthen the balance sheet for future opportunistic portfolio improvement initiatives", he said.

Evolution Mining has a market capitalisation of about $4.3 billion and was formed in 2011. Shares in the company dropped 7¢ on Tuesday, to close at $2.53. Credit Suisse has an "outperform" rating on the stock. Gold was trading at about $US1327 an ounce late on Tuesday afternoon.

Gold miners hit the headlines last week after they reacted angrily to changes in the Western Australia state budget, as the new Labor government unveiled a rise in the gold royalty rate.