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Bellevue Gold locks in $150 million after launching five-year plan to achieve 250,000ozpa goal
Neil WatkinsonKalgoorlie Miner
Sat, 27 July 2024 2:00AM



A gold pour at the Bellevue mine. Credit: Evan Collis/Supplied

Northern Goldfields miner Bellevue Gold has locked in a $150 million capital raising the day after launching itself on a path to produce 250,000 ounces per annum by FY28.

On Friday, Bellevue said it had received firm commitments for the $150m fully underwritten share placement to institutional investors at $1.55 per share.
The company said the placement represented a 15.3 per cent discount on Wednesday’s closing price of $1.83, and a 14.5 per cent discount on the five-day volume-weighted average price of $1.81 on Wednesday.

Bellevue said proceeds would be used to repay debt, unlock free cash flow to allow it to self-fund expansion in line with its updated five-year growth plan, and to support accelerated exploration and growth.
The company announced the growth plan on Thursday, saying it aimed to grow production to 250,000ozpa by FY28, which would materially grow earnings and production profile, and significantly reduce all-in sustaining costs to $1500/oz-$1600/oz by FY29.

Bellevue said this output would position it as one of only seven gold projects in the world producing more than 200,000oz at 5g/t gold or more in a tier-one jurisdiction.

The company also released guidance for the current financial year of 165,000oz-180,000oz at an AISC of $1750/oz-$1850/oz.

It said growth would be delivered through increased underground ore movement from 1 million tonnes per annum this financial year to 1.6Mtpa in FY27, and increased processing capacity from 1Mtpa to 1.6Mtpa by FY27.

Bellevue said its total FY25 forecast growth and mine expansion capital of $145m would include significant investment in accelerating underground infrastructure and the start of the processing plant expansion.
The company said there would also be an increase in active mining areas from five to seven by FY26, with accelerated development of the Tribune and Deacon North underground work areas.

Bellevue managing director Darren Stralow said with commissioning successfully completed, commercial production declared, and operational free cash flow of $41m generated in the past quarter, the company was ideally placed for a future marked by a lower risk profile and a growing production outlook.
“We will significantly de-risk the balance sheet and increase production and free cash flow in the process,” he said.
“This will enable us to unlock the full value of the Bellevue asset and leverage existing infrastructure in a more rapid manner, in turn achieving greater scale, lower costs and increased financial returns.”