Bellevue Greenlights $40M Paste Plant, Clears June 2026 Hedge Book

Strategic Investment in Paste Fill Technology

Bellevue Gold Limited (ASX – BGL) has taken a decisive step to enhance its Bellevue Gold Project by approving the construction of a new wet paste plant designed to improve gold recovery and operational safety. The plant, with a capacity of 120 cubic metres per hour, will serve the high-grade Deacon and Deacon North mining areas. Construction is slated to begin in the 2026 financial year and is expected to be completed by mid-2027.

The paste fill method involves mixing tailings with cement to create a paste that is deposited into underground voids, providing continuous wall support and reducing seismic risks. This approach not only improves safety but also allows for more efficient extraction of ore that was previously left behind as pillars, thereby increasing overall recovery by an estimated 7% and adding approximately 100,000 ounces of gold over the current reserve life.

Financial Implications and Capital Expenditure

The capital expenditure for the paste plant is estimated between $35 million and $40 million, including a 10% contingency, and will be funded from operational cash flows. This investment has led to an upward revision of Bellevue’s FY26 growth capital guidance from $80-$90 million to $105-$115 million. Importantly, the construction will not affect FY26 production or all-in sustaining cost (AISC) guidance, with formal FY27 guidance to be provided early next financial year.

GR Engineering Services Limited is expected to be appointed as the constructor, with key long-lead items such as disc filters and cement silos already ordered. The paste plant will also reduce the volume of tailings deposited on surface, extending the life of the tailings storage facility by depositing about 30% of tailings underground.

Hedge Book Reduction and Balance Sheet Strength

In a parallel development, Bellevue has fully pre-delivered all remaining June 2026 quarter gold hedges, effectively clearing mandatory forward sale commitments until September 2026. This reduction in the hedge book, now standing at 112,675 ounces at an average price of A$2,886 per ounce, represents a 26% year-to-date decrease and enhances the company’s financial flexibility.

The company’s cash and gold balances increased by approximately $5 million in January 2026, reaching $170 million. This strong balance sheet positions Bellevue well to fund near-mine exploration, accelerate hedge pre-deliveries, and potentially reduce debt, providing a de-risked platform for future growth initiatives.

Exploration Outlook

With the financial foundation strengthened, Bellevue is reviewing its 2026 exploration program with ambitions to increase drilling capacity and accelerate development of high-confidence targets near existing operations. The company views the Bellevue mineralised system as a significant opportunity for discovering additional ounces, which could further extend the mine life and enhance shareholder value. More details on exploration progress are expected in the June 2026 quarter.