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Highlights
- Bellevue Gold (BGL) reported quarterly gold sales of over 26,000 ounces.
- FY25 production guidance revised to 150,000-165,000 ounces.
- Development progress shows improved grades expected in the second half of FY25.
Bellevue Gold (ASX:BGL) achieved gold sales of 26,230 ounces in the December 2024 quarter, with an average sale price of $3,339 per ounce. This performance aligns with the company’s strategy detailed in its five-year growth plan, emphasizing weighted production in the second half of FY25. Bellevue remains on track to achieve an annual production rate of more than 200,000 ounces starting early in the June quarter.
However, the company adjusted its FY25 gold production guidance to a range of 150,000 to 165,000 ounces, with approximately 90,000 ounces expected in the latter half of the fiscal year. Bellevue highlighted that, on an annualized basis, this aligns with the upper range of its original guidance of 165,000 to 180,000 ounces. The company plans to revisit its all-in sustaining cost (AISC) guidance in the quarterly report due in January.
At the end of the December quarter, Bellevue reported cash and gold holdings of $81 million, offset by $100 million in debt. The company noted that no principal repayments are due until 2027, providing financial flexibility for ongoing development activities.
Production challenges during the quarter stemmed from mining the outer edges of the orebody, which resulted in lower grades. These areas, located in the Armand, Marceline, and Bellevue South zones, exhibited increased geological variability. High-grade stoping operations in the Deacon area remained a priority, with grade improvements anticipated in the second half of FY25 as operations transition to lower geological complexity zones with higher-grade ore.
Development rates in the primary mining areas averaged 270 meters per jumbo per month. However, delays in accessing higher-grade zones were attributed to increased equipment downtime, interactions between production and development activities, and infrastructure upgrades. These delays are expected to be resolved, with higher-grade areas slated for mining later in FY25.
Progress at the Tribune site demonstrated improvement, with 300 meters of development achieved in December using a single jumbo. The processing plant operated at an annualized run rate of 1.1 million tonnes per annum during the quarter, with recovery rates improving to 95%. December’s processing rate reached 1.25 million tonnes per annum, showcasing efficiency gains.
Bellevue’s ongoing efforts to optimize production and development underscore its commitment to achieving strong operational results in the second half of FY25, further strengthening its position in the gold mining sector.
