Bellevue Gold (ASX: BGL) has pressed reset on its mine plan, production outlook, and hedge book in a sweeping update aimed at shoring up its balance sheet and positioning the business to take full advantage of record spot gold prices. The move follows a disappointing March 2025 quarter, where production came in well below expectations due to a mix of geological surprises and operational execution challenges during the ramp-up phase.
March quarter stumbles, but June looking stronger
Gold production for the March quarter totalled 25,146 ounces—short of internal targets—due largely to underperforming stopes and dilution in some fringe zones of the orebody. The good news? Bellevue says those issues are now behind it. The mine plan has been adjusted, with a focus on higher-confidence areas and less aggressive development rates.
Production for the June quarter is now guided at 40,000–45,000 ounces, and full-year FY25 guidance has been revised down to 129,000–134,000 ounces (from 150,000–165,000 ounces). FY26 production is expected to land around 150,000 ounces, with a long-term production target of ~190,000 ounces per annum from FY27 through FY29—supported by over 90% Indicated Resources.
To support this more conservative mine plan, Bellevue has opted to shelve its longer-term ambition of hitting 250,000 ounces a year. The expansion of its processing plant to 1.6Mtpa has been deferred, trimming FY26 growth capital by $75 million.
Hedge book overhaul and capital raise
To give itself room to breathe—and benefit from current gold prices—Bellevue is undertaking a fully underwritten $156.5 million equity raise. About $110 million of that will be used to close out near-term hedges, freeing up production to be sold at spot pricing. The remaining $40 million boosts working capital, lifting pro forma March 2025 cash and gold to $89 million.
Macquarie Bank, Bellevue’s financier and shareholder, has waived a debt covenant review triggered by the March quarter miss and supported the hedge restructure. Some 18,000 ounces of hedges have been deferred to March 2028, reducing pressure over the next few quarters.
Strategic review and leadership changes
Bellevue is also launching a strategic review to explore both internal optimisation and external options—including possible corporate transactions. While it’s received unsolicited approaches, no formal offers are on the table yet. UBS, King & Wood Mallesons, and the Lisle Group have been brought in to assist.
As part of the leadership refresh, COO Bill Stirling will step down, remaining in a transitional role as a search for his replacement gets underway.
Looking ahead
Bellevue says it’s now better positioned to generate strong free cash flow and consistent production, with a simplified mine plan, trimmed capital expenditure, and stronger balance sheet. With over $430 million in tax losses available to offset future earnings, the path to profitability looks more achievable—if it can stick the landing.
