Bellevue Gold Limited (ASX: BGL): Pivotal Infrastructure Expansion and Strong Operational Progress

Bellevue Gold Limited has delivered a robust update, outlining key milestones achieved in the first quarter of FY25 and reaffirming its FY25 guidance. Here’s what investors need to know.

Operational and Financial Highlights

  • Gold Production and Sales:
    • Gold Produced: 35,993 ounces.
    • Gold Sold: 39,405 ounces at an average price of A$3,420/oz.
    • All-In Sustaining Cost (AISC): A$1,892/oz.
  • Cash Flow and Liquidity:
    • Free cash flow of A$11M, after investing A$37.6M in growth and exploration.
    • Net cash of A$9M, with total liquidity of A$222M, positioning the company well to execute its 5-year growth plan.
  • FY25 Guidance Maintained:
    • Production target: 165,000–180,000oz.
    • AISC: A$1,750–1,850/oz.
    • Production weighted toward the second half of FY25, ramping up to a 200,000oz annualized rate by Q4 FY25.

Key Infrastructure Upgrades

  1. Ventilation, Pumping, and Power:
    • Completion of life-of-mine ventilation upgrades in September 2024.
    • Improved underground development, with over 300m per jumbo per month in the Bellevue mine.
  2. Processing and Ore Movement:
    • Achieved processing throughput rate of 1Mtpa.
    • Underground ore movement increased to 222Kt, including 168Kt of stope material (up 10% from the June quarter).
  3. Tribune Portal Development:
    • Opened a sixth independent mining area, with an additional jumbo operational and advancing development.

Resource and Reserve Growth

  • Ore Reserves:
    • Increased by 13% (net of depletion) to 1.51Moz @ 5.0g/t gold.
    • High-grade underground reserve: 1.34Moz @ 6.1g/t gold.
  • Indicated Resources:
    • Grew by 18% to 2.0Moz @ 10.1g/t gold.
  • Exploration Success:
    • High-grade drill results at Deacon Main and Bellevue South, supporting FY25 mine schedules:
      • 10.8m @ 66.8g/t gold, 14.0m @ 49.4g/t gold, and more.

Renewable Energy Initiatives

  • Solar and Battery Energy Storage:
    • Fully commissioned 27MW solar farm and 15MW/29MWh battery system, allowing “engines off” operation during peak solar generation.
    • Renewable energy penetration now averages 40% daily.
  • Wind Power Progress:
    • Civil works for 4x6MW wind turbines are near completion, with commissioning expected in H1 CY25.
  • Net Zero Goal:
    • On track to achieve net zero Scope 1 and Scope 2 emissions by CY26.

Growth Plan and Outlook

Bellevue’s 5-year growth plan targets a steady-state production rate of 250,000oz by FY28, with AISC reducing to A$1,500–1,600/oz. The completion of critical infrastructure upgrades has set the stage for accelerated development and a strong ramp-up in operations.

Managing Director Darren Stralow highlighted the transformative nature of the past quarter, emphasizing that Bellevue is firmly on track to meet its guidance and long-term goals.

Investor Takeaways

  • Positive Growth Trajectory: Bellevue is progressing toward higher production and cost efficiency while maintaining financial stability.
  • Renewable Energy Leadership: The company’s commitment to sustainable mining adds value for ESG-focused investors.
  • Exploration Upside: High-grade discoveries underpin a robust resource base with potential for further expansion.