Bellevue Gold Reports 26,059oz Q2 Output, Cuts Costs Ahead of 200,000oz Run Rate

Strong Operational Momentum

Bellevue Gold Limited (ASX: BGL) delivered a solid December 2024 quarter, producing 26,059 ounces of gold at an all-in sustaining cost (AISC) of A$2,765 per ounce. While this represented a step back from the previous quarter’s 36,000 ounces, the company attributes the dip to mining through lower-grade ore zones as it prepares to transition into richer areas of the orebody.

Underground mining activity showed encouraging signs of improvement, with total ore movement reaching 239,380 tonnes at 3.7 g/t gold. Notably, the underground operation surpassed a 1 million tonnes per annum run rate in December, a key milestone that underpins the company’s production ramp-up plans.

Guidance and Cost Outlook

Bellevue revised its FY25 production guidance downward to 150,000-165,000 ounces, reflecting the slower start to the year but forecasting a strong second half. The H2 FY25 production is expected to reach approximately 90,000 ounces, with a project AISC forecast between A$1,750 and A$1,950 per ounce, significantly lower than the December quarter’s elevated costs.

This cost improvement is driven by increased access to high-grade mining areas such as Armand, Marceline, and Bellevue South/Viago, as well as operational efficiencies from recent infrastructure upgrades including ventilation and dewatering. The company also reduced its growth capital and exploration budget to around A$155 million from an earlier estimate of A$175 million, reflecting a more measured capital deployment aligned with operational progress.

Exploration Success and Resource Development

Bellevue’s underground drilling program remains robust, with over 33,000 metres completed in the quarter and a fifth rig added at the end of the period. Recent grade control drilling results have been impressive, with multiple high-grade intercepts reported across key mining centres. These results provide strong support for the planned production ramp-up and reinforce confidence in the mine’s long-term resource base.

Financial Position and Debt Restructure

The company reported a negative free cash flow of A$25 million for the quarter, largely due to ongoing investment in growth and exploration. However, a significant debt restructure with Macquarie Bank was completed on schedule, leaving Bellevue with A$100 million of bank debt and no minimum scheduled repayments until calendar year 2027. This improved financial flexibility is critical as the company executes its growth strategy.

Sustainability and Renewable Energy Initiatives

On the sustainability front, Bellevue is making notable strides. The 27 MW solar farm and 15 MW / 29 MWh Battery Energy Storage Solution (BESS) are now fully operational, enabling the mine to achieve a record 50% renewable energy penetration in December 2024. The company has also commenced construction of four 6 MW wind turbines, expected to be commissioned in the second half of FY25.

These initiatives position Bellevue to become Australia’s first gold miner to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions by 2026, a significant milestone that aligns with growing investor and stakeholder expectations around environmental responsibility.

Looking Ahead

Managing Director Darren Stralow highlighted the positive trajectory: "The investments we have made in infrastructure and mine development are starting to bear fruit. As we move into richer ore zones, production will increase, costs will fall, and free cash flow will grow. Our commitment to sustainability remains unwavering as we target net-zero emissions next year."

With the underground operation now fully feeding the mill and a clear path to higher grades and production rates, Bellevue is well positioned to deliver on its ambitious growth and sustainability targets in the coming quarters.