Bellevue Gold Revises FY25 Guidance, Raises $156.5M, Launches Strategic Review

March Quarter Performance and Operational Challenges

Bellevue Gold Limited (ASX: BGL) delivered 25,146 ounces of gold in the March 2025 quarter, falling short of prior expectations due to localized mining dilution and suboptimal stope performance during a rapid ramp-up phase. The project achieved record mining rates of 303,000 tonnes, but the average mined grade dropped to 3.5 g/t, impacted by three key stopes on the orebody's edges. Processing throughput reached a record 1.35 Mtpa capacity with metallurgical recoveries holding steady at 94%.

Despite these operational headwinds, the company maintained a strong focus on grade control and spatial compliance improvements to mitigate future risks. A 35,000-tonne stockpile was built up by quarter-end, reflecting the lower-than-expected head grades delivered to the processing plant.

Revised Guidance and Capital Management

Following an operational review, Bellevue revised its FY25 production guidance down to 129,000-134,000 ounces from the previous 150,000-165,000 ounces, with all-in sustaining costs (AISC) now expected between A$2,425 and A$2,525 per ounce. Growth capital and exploration expenditure guidance was trimmed to A$142 million from A$155 million, reflecting a de-risked and less capital-intensive mining plan focused on cash flow maximisation.

The company is confident in delivering a stronger June 2025 quarter production of 40,000-45,000 ounces as mining progresses into higher-grade core areas of the orebody. Looking ahead, Bellevue targets approximately 150,000 ounces in FY26 and around 190,000 ounces annually from FY27 to FY29, underpinned by more than 90% Indicated Resources.

Capital Raise and Hedgebook Restructuring

Subsequent to the quarter, Bellevue completed a fully underwritten $156.5 million placement. Approximately $110.8 million of these funds were used to close out 41,750 ounces of near-term hedges scheduled for delivery in 2025, significantly increasing the company's exposure to the spot gold price. This strategic move is expected to enhance free cash flow generation over the remainder of FY25 and beyond.

The balance sheet was further strengthened with an additional $40 million added to working capital, resulting in a pro forma cash and gold position of A$89 million as of 31 March 2025. The company carries $100 million in debt with no mandatory principal repayments until calendar year 2027.

Strategic Review and Leadership Changes

In light of recent operational performance, Bellevue's Board has initiated a strategic review to explore internal and external options aimed at maximising shareholder value. This includes a comprehensive assessment of operational improvements, capital management, and potential corporate transactions. The review is being supported by UBS, the Lisle Group, and King & Wood Mallesons.

Concurrently, Bellevue announced the departure of Chief Operating Officer Bill Stirling, who will remain in a transitional role while a replacement is sought. The company has also disclosed receiving unsolicited approaches regarding a potential control transaction, though no formal proposals have been received to date.

Sustainability and Renewable Energy Progress

Bellevue continues to advance its sustainability agenda, with construction well underway for four 6MW wind turbines expected to be commissioned in the second half of FY25. The project is on track to achieve net zero Scope 1 and Scope 2 greenhouse gas emissions by calendar year 2026. Solar and battery systems are already delivering renewable energy penetration rates exceeding 40%, reducing reliance on diesel and gas.

The company has been shortlisted for the “Excellence in Decarbonisation Strategy and Implementation by a Mining Company” award at the 2025 Decarbonising Mining Awards, underscoring its commitment to environmental stewardship.