Bellevue Gold delivered a strong June 2026 quarter, surpassing production targets and slashing hedge commitments, boosting cash reserves and positioning for growth in FY27.
- June quarter gold output of 41,643oz at 4.5 g/t
- FY26 production hits ~144koz, above guidance midpoint
- Underlying free cash flow around $110 million
- Hedge book reduced by 23koz, no deliveries until June 2027
- Cash and gold on hand rises to $206.4 million
Production Outpaces Guidance with Strong Operational Execution
Bellevue Gold Limited (ASX:BGL) powered through the June 2026 quarter with a gold production tally of 41,643 ounces, comfortably beating the midpoint of its guidance range. The company’s annual production for FY26 reached approximately 144,000 ounces, landing in the upper half of its 130,000-150,000 ounce target. This output was supported by consistent mining and milling performance, with ore grades holding steady at 4.5 grams per tonne and metallurgical recovery improving to 96%.
Mining activity focused on five established areas, including first ore development at the higher-grade Deacon North zone, signalling ongoing resource expansion. Physical mining metrics such as development progress and ore haulage finished ahead of budget, creating a healthy stockpile buffer of 47kt at quarter-end, up from 37kt previously.
Robust Cash Flow and Hedge Book Reduction Strengthen Balance Sheet
Underlying free cash flow before voluntary hedge pre-deliveries was approximately $110 million for the quarter, down from a record $158 million in March but still a strong showing. Bellevue continued to aggressively reduce its forward gold sales commitments, cutting the hedge book by 23,000 ounces to 68,650 ounces. This marks a 55% reduction over the full year, with no contractual deliveries required until the end of June 2027.
The company’s cash and gold on hand swelled to $206.4 million, a $25.7 million increase from the prior quarter, reflecting both operational cash generation and the impact of pre-delivering gold against forward contracts. This strategic move de-risks the balance sheet while preserving flexibility to fund exploration, capital projects such as the ongoing paste plant construction, and other growth opportunities.
Cost Guidance Met as Bellevue Eyes FY27 Growth
Bellevue confirmed that its all-in sustaining costs (AISC) for FY26 are within the guidance range of A$2,600 to A$2,900 per ounce, with final figures to be released in the full quarterly report later in July. The company’s operational discipline and strong project execution underpin a positive outlook for FY27, as it builds on the momentum from consistent production results and a de-risked financial position.
With surface stockpiles growing and development in key mining areas on track, Bellevue is well placed to maintain steady output and capitalise on its resource base. The company’s ongoing hedge book reduction strategy signals confidence in its ability to generate cash flow while managing price exposure prudently.
Bottom Line?
Bellevue’s June quarter performance and hedge book trimming position it well for a flexible, cash-generative FY27, though upcoming full quarterly results will clarify cost and profitability details.
Questions in the middle?
- How will Bellevue balance further hedge book reductions with maintaining cash reserves?
- What impact will the new Deacon North development have on production grades and volumes?
- Will the final FY26 AISC figures confirm sustainable cost control amid expansion plans?