Bellevue Gold Limited (Bellevue) has released a preliminary production update for the December 2024 quarter, providing insights into quarterly performance, operational progress, and revised FY25 production guidance.
December 2024 Quarter Highlights:
- Gold Sales: 26,230 ounces at an average sale price of A$3,339/oz.
- Cash and Gold on Hand: Approximately A$81 million, down from A$109 million in the September 2024 quarter.
- Debt Position: A$100 million, with no principal repayments due until CY27.
Operational Insights:
- Gold Production:
- Lower grades were encountered due to mining the outer edges of ore zones in the Armand, Marceline, and Bellevue South areas, leading to increased geological variability.
- High-grade stoping continued in the Deacon area, maintaining its status as a priority mining zone.
- Grade Expectations:
- Higher-grade ore is anticipated in the second half of FY25 as mining moves to lower geological complexity zones within Armand, Marceline, Bellevue South/Viago, and other key areas.
- Development Performance:
- Average development rates: ~270m per jumbo per month.
- Tribune development is progressing strongly, with rates exceeding 300m in December 2024 using a single jumbo.
- Delays accessing higher-grade areas have resulted from production and development overlaps, equipment downtime, and infrastructure upgrades.
- Processing Plant:
- Operating at an annualized rate of ~1.1 million tonnes per annum (Mtpa) during the quarter.
- December 2024 performance: 1.25 Mtpa throughput and ~95% recovery rate, marking a significant improvement.
Revised FY25 Guidance:
- Gold Production:
- Updated to 150,000–165,000 ounces, reflecting adjustments in mining schedules and grade variability.
- Second half FY25 forecast: ~90,000 ounces, equivalent to the higher end of the original guidance (165,000–180,000 ounces on an annualized basis).
- All-In Sustaining Costs (AISC):
- FY25 guidance under review, with updates to be provided in Bellevue’s quarterly report in late January 2025.
Key Growth and Outlook:
- Bellevue remains on track to achieve a production rate exceeding 200,000 ounces per annum by the June 2025 quarter.
- The updated guidance underscores the Company’s confidence in achieving substantial production growth in the second half of FY25, supported by operational improvements and access to higher-grade ore.
- Bellevue’s financial position remains strong, with significant cash reserves and a flexible debt repayment schedule ensuring stability for future growth.
Bellevue’s focus on optimising operations and moving into higher-grade zones is expected to position the Company for strong performance in the latter half of FY25.
