Bellevue Slashes Guidance, Raises $156.5M to Stabilise Operations

About Bellevue Gold Limited

Bellevue Gold Limited (ASX: BGL) is an Australian gold exploration and development company focused on the Bellevue Gold Project in Western Australia’s Goldfields region. The project boasts a high-grade mineral resource of 3.2 million ounces at 9.9 grams per tonne, positioning it as one of Australia’s premier gold assets. Bellevue is committed to sustainable mining practices, aiming for net-zero greenhouse gas emissions by 2026 through the integration of renewable energy solutions.

Operational Performance And Production Guidance

In the March quarter, Bellevue produced 25,146 ounces of gold, approximately 30% below market expectations. The shortfall was attributed to geological complexities and sub-optimal mining practices, leading to a cash outflow of around A$32 million and reducing the company’s cash and bullion position to A$49 million as of March 31. Consequently, the company has adjusted its FY2025 production guidance to 129,000–134,000 ounces, a second downgrade from the initial estimate of 165,000–180,000 ounces.

Equity Raising And Hedging Strategy

To strengthen its balance sheet and regain exposure to favourable gold prices, Bellevue has announced a fully underwritten A$156.5 million equity placement at A$0.85 per share, representing a 25.8% discount to its last traded price. Approximately A$110.5 million of the proceeds will be used to close out near-term hedge contracts, with the remaining A$40 million allocated to working capital. This move aims to allow a greater proportion of gold production to benefit from current high spot prices, enhancing cash flow in the near term.

Strategic Review And Leadership Changes

In response to recent operational challenges, Bellevue has initiated a strategic review to assess internal and external options for improving performance and shareholder value. The company has received unsolicited approaches regarding potential control transactions, though no formal proposals have been made. As part of the leadership transition, Chief Operating Officer Bill Stirling will step down, with plans to appoint a successor to guide the company through its next phase.

Outlook And Future Plans

Bellevue remains focused on stabilising operations and achieving its revised production targets. The company anticipates producing 40,000–45,000 ounces in the June quarter and aims for approximately 150,000 ounces in FY2026. Plans for expanding the processing plant have been paused, reducing growth capital expenditure by A$75 million. Long-term production is now projected at around 190,000 ounces annually from FY2027, down from the previous target of 250,000 ounces.

Bellevue’s ability to adapt its strategies in response to operational challenges and market conditions will be crucial in navigating the current landscape. The company’s commitment to sustainability and prudent financial management positions it to capitalise on future opportunities in the gold sector.