One of the gold companies to invest in is Bellevue Gold Limited because of its increasing grades and tonnage position, as recently reported.
Bellevue Gold Limited (ASX: BGL)
Bellevue Gold Limited (ASX: BGL) has reported significant operational and financial progress in its December 2024 quarterly activities, positioning the company for increased gold production and lower costs in the coming months. The company’s production levels continued to rise, with gold output reaching 26,059 ounces and gold sales totaling 26,230 ounces at an average realized price of A$3,339 per ounce. However, production costs were impacted by lower-grade ore processing, leading to an all-in sustaining cost (AISC) of A$2,765 per ounce for the quarter. Bellevue remains confident in its second-half fiscal year outlook, with production guidance set at approximately 90,000 ounces and a forecasted AISC reduction to A$1,750–A$1,950 per ounce.
The company is among the best gold stocks having also revised its full-year guidance, now expecting between 150,000 and 165,000 ounces of gold production at an AISC of A$1,900–A$2,100 per ounce. This adjustment reflects the gradual ramp-up of mining activities and increased access to high-grade ore zones, which are expected to significantly enhance output in the fourth quarter of FY25. Bellevue’s underground mining operations are progressing steadily, with total ore movement reaching 239,000 tonnes at an average grade of 3.7 grams per tonne (g/t). A major development milestone was achieved in December when mined tonnes exceeded a one-million-tonne-per-annum run rate, reinforcing the company’s ability to sustain long-term production growth.
Significant investment in infrastructure and operational enhancements has begun to deliver tangible benefits. Improvements in ventilation and dewatering systems have increased underground productivity, with December marking a record 70,000 tonnes of stope ore mined. The company also achieved a record processing milestone, with 106,000 tonnes of ore processed in December, contributing to a total quarterly mill feed of 277,000 tonnes at 3.1 g/t, with a strong recovery rate of 94%. These operational advancements are expected to support Bellevue’s transition towards a consistent 200,000-ounce annual production rate by the fourth quarter of FY25.
From a financial standpoint, Bellevue reported a negative free cash flow of A$25 million for the quarter, reflecting A$34.2 million in growth and exploration investments. Capital expenditures focused on key mining infrastructure, including ventilation upgrades, tailings storage expansion, and continued development at key mining zones such as Armand, Bellevue South, and Deacon. The company successfully completed a debt restructuring agreement with Macquarie Bank, reducing outstanding bank debt to A$100 million with no mandatory repayments required until calendar year 2027.
Bellevue’s commitment to sustainability remains a key priority, with the company advancing its renewable energy initiatives. The December quarter saw record renewable energy penetration of 50%, driven by the successful integration of a 27MW solar farm and a 15MW battery energy storage system. The company also commenced construction of four 6MW wind turbines, which are expected to be fully operational in the second half of FY25. These initiatives align with Bellevue’s goal of achieving net-zero Scope 1 and Scope 2 greenhouse gas emissions by 2026, positioning it as Australia’s first gold miner to operate with a fully decarbonized energy model.
Looking ahead, Bellevue’s strategic focus remains on scaling up production, reducing costs, and enhancing financial flexibility. With high-grade ore zones becoming more accessible and mining efficiencies improving, the company expects stronger financial and operational results in the latter half of FY25. By leveraging its sustainable energy model and optimizing its mining operations, Bellevue Gold Limited is well-positioned to solidify its status as a leading low-cost gold producer in the industry.
(Source: Company’s Report)
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