Bellevue Gold Limited surged to record underlying free cash flow of A$158 million in the March 2026 quarter, driven by a 28% jump in ore grades and increased production. The company also advanced exploration with a new high-grade discovery and progressed its $35-40 million paste plant project while maintaining a strong sustainability profile.
- March quarter gold production rose 27% to 40,745 ounces
- All-in sustaining costs fell to A$2,578 per ounce
- Forward hedge book reduced by 32,505 ounces
- New high-grade structure intersected near Marceline
- Paste plant construction underway, funded from cash flow
Record Free Cash Flow Boosted by Higher Grades
Bellevue Gold Limited (ASX:BGL) delivered a standout March 2026 quarter, posting a record underlying free cash flow of A$158 million, more than doubling the previous quarter’s $62 million. This surge was underpinned by a 27% increase in gold production to 40,745 ounces and a significant 28% rise in milled grades to 4.7 grams per tonne, as mining increasingly tapped into higher-grade zones at Deacon Main. The all-in sustaining cost (AISC) dropped to A$2,578 per ounce, down from A$2,989 in December 2025, reflecting better grade profiles and operational efficiencies.
Gold sales for the quarter reached 39,754 ounces at an average realised price of A$3,459 per ounce, including early deliveries into forward sales contracts. The company remains firmly on track to meet its FY26 guidance of 130,000 to 150,000 ounces at an AISC range of A$2,600 to A$2,900 per ounce.
Exploration Uncovers New High-Grade Structure Near Marceline
Exploration efforts gained momentum with the surface drilling program completing its first full quarter. A highlight was the intersection of a new high-grade mineralised structure at 391 metres depth near the Marceline mining area, returning 3.44 metres at 18.45 grams per tonne gold. This discovery, located approximately 140 metres east of existing development, is under active investigation with follow-up wedge holes drilled to delineate its extent. While assay results from some holes remain pending, the company plans a targeted follow-up program to assess the resource potential of this structure.
Underground drilling continues to focus on grade control, with five rigs currently operating and an additional rig scheduled to commence resource and extension drilling in the June quarter. This drilling strategy aims to support mine planning and sustain a high-grade mining sequence across multiple areas including Deacon North, Viago, Tribune, and Marceline.
Paste Plant Construction to Enhance Recovery and Production Flexibility
Bellevue has approved the construction of a new 120 cubic metre per hour wet paste plant at the Bellevue Gold Project, targeting the high-grade Deacon and Deacon North areas. The $35-40 million capital project commenced procurement of long-lead items in December 2025, with on-site construction slated to start in the June 2026 quarter and completion targeted for mid-FY27. The paste plant is expected to improve stope stability and increase ore recovery by approximately 7%, potentially adding around 100,000 ounces of gold to the resource base over time. The project is fully funded from operational cash flows, with growth capital guidance for FY26 revised to A$105-115 million to accommodate the paste plant expenditure.
Balance Sheet De-risked Through Hedge Book Reduction and Strong Liquidity
Financially, Bellevue continues to strengthen its position by voluntarily pre-delivering 32,505 ounces of gold against forward sales contracts, reducing the committed hedge book to 91,650 ounces at an average price of A$2,932 per ounce. This strategy increases the company’s exposure to the spot gold price and reduces balance sheet risk. The company is now free of mandatory hedge deliveries until the end of December 2026 and expects to further accelerate hedge reductions through positive free cash flow.
Cash and gold on hand increased to A$181 million at quarter end, up from A$165 million in December 2025, while debt remains stable at A$100 million with no mandatory repayments due until 2027. The company’s project loan facility with Macquarie Bank continues under favourable terms, supporting ongoing development and growth initiatives.
Sustainability Leadership with Net Zero Emissions and High Renewable Energy Use
Bellevue’s sustainability credentials remain a standout feature, with the Bellevue Gold Project achieving net zero Scope 1 and Scope 2 greenhouse gas emissions for calendar year 2025. This milestone is supported by industry-leading renewable energy usage, which averaged 85.2% during the quarter and peaked at 93.8% in February 2026. The company’s power station design and renewable energy strategy not only reduce emissions but also insulate Bellevue from diesel price volatility and supply risks, with diesel costs representing only 1.3% of total project costs.
Looking ahead, Bellevue’s ability to maintain strong operational delivery, advance exploration including the promising new Marceline structure, and execute its paste plant project will be key areas to monitor. The company’s ongoing hedge book reductions and robust free cash flow generation also position it well to capitalise on potential market opportunities and further de-risk its balance sheet.
These results build on the momentum reported earlier in the year, including the company’s record $158 million free cash flow and the $40 million paste plant approval, underscoring Bellevue’s disciplined execution across operations, exploration, and finance.
Bottom Line?
Bellevue’s record cash flow and grade improvements set a solid base, but upcoming exploration results and paste plant impacts will test growth and cost sustainability.
Questions in the middle?
- Will the new high-grade Marceline structure materially extend Bellevue’s resource base?
- How will the paste plant influence recovery rates and AISC beyond FY26?
- Can Bellevue continue accelerating hedge book reductions without compromising financial flexibility?