Bellevue Gold Limited (ASX: BGL) posted a strong March 2026 quarter with production of approximately 41,000 ounces of gold at increased grades, driving record underlying free cash flow of around $158 million. The company reduced forward gold sales commitments by 32,500 ounces, de-risking its balance sheet and increasing future exposure to spot gold prices.
- March quarter production of ~41koz at 4.7g/t gold
- Record underlying free cash flow of ~$158 million
- Forward gold sales commitments reduced by 32,500 ounces
- Renewable energy supplied ~90% of electricity demand
- On track to meet FY26 production and cost guidance
Strong Production and Grade Improvements
Bellevue Gold Limited (ASX:BGL) reported production of approximately 40,745 ounces of gold in the March 2026 quarter, with average head grades increasing to 4.7 grams per tonne. Ore mined totaled 293,000 tonnes at 4.6 g/t, yielding 44,000 ounces, while ore processed was 283,000 tonnes at 4.7 g/t for 41,000 ounces. The rise in grades was driven by mining from higher-grade zones, particularly in the Deacon Main mining area, which contributed consistently throughout the quarter. Development at the higher-grade Deacon North area is scheduled for the June quarter, with mined and processed tonnes expected to increase accordingly.
Record Underlying Free Cash Flow and Balance Sheet De-risking
The company achieved a record underlying free cash flow of approximately $158 million for the quarter, up from $62 million in December 2025. This figure excludes voluntary pre-deliveries against future hedge book commitments. Bellevue reduced its forward gold sales commitments by 32,505 ounces (26%) to 91,650 ounces, down from 124,200 ounces in the prior quarter. This reduction was achieved through voluntary pre-delivery of gold against contracts maturing through the remainder of 2026, effectively eliminating contractual hedge deliveries until the end of December 2026. As a result, Bellevue has increased its exposure to future spot gold prices while maintaining flexibility to build cash and support exploration and investment opportunities.
Cash and gold on hand rose by $16 million during the quarter to $181 million, reinforcing the company’s strong liquidity position. This follows a series of balance sheet improvements, including a significant debt reduction and cash build in the December quarter, as detailed in the company’s earlier update on its boost to cash and debt reduction in December quarter.
Operational Efficiency and Sustainability
Metallurgical recovery averaged 94.6% for the quarter, outperforming the assumptions used in the FY26 guidance. Surface stockpiles were estimated at 37,000 tonnes at quarter end, slightly down from 41,000 tonnes in December. Bellevue’s power station continued to operate with approximately 90% of electricity demand met from renewable energy sources during March 2026. This high renewable energy usage keeps the company’s direct exposure to diesel costs among the lowest in the sector, with diesel purchases representing only about 1.3% of total project costs for the financial year to 28 February 2026. The company reported no diesel supply issues at this time.
Outlook and Guidance
Bellevue remains on track to meet its FY26 production guidance of 130,000 to 150,000 ounces and all-in sustaining cost (AISC) guidance of A$2,600 to A$2,900 per ounce. The company forecasts increased mined and processed tonnes in the June 2026 quarter, supported by ongoing development in higher-grade areas. The strategic reduction of the hedge book and strong cash flow generation provide flexibility to pursue growth initiatives and exploration, including the recently approved paste plant project aimed at improving recovery rates, as discussed in the company’s earlier approval of a $40 million paste plant and hedge book clearance.
Bottom Line?
Bellevue Gold’s March quarter results highlight operational strength and financial flexibility, though investors should monitor execution of growth projects and commodity price exposure as the year progresses.
Questions in the middle?
- How will the accelerated pre-delivery of hedge commitments affect Bellevue’s earnings volatility in the second half of FY26?
- What impact will the upcoming development in the Deacon North mining area have on production volumes and grades?
- How might fluctuations in renewable energy availability or diesel prices influence operating costs going forward?