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New gold producer Bellevue eyes impending free cashflow as key to share re-rate
Plus, EQ emerging as a national champion in the critical tungsten game
AN HOUR AGO

Barry FitzGerald
Independent Journalist

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Bellevue Gold (ASX:BGL) boss Darren Stralow has got a lot to be excited about.
The company joined the ranks of Aussie gold producers a month ago when it poured its first gold at its namesake mine near Leinster in WA’s Northern goldfields.
Then there is the sweet timing of first production and the ensuing ramp-up, coinciding as it does with the gold price being at near-record levels of $A3,040/oz ($US1,993/oz).

Or could it be that that commissioning/ramp-up is going well, and that definition drilling is confirming Bellevue’s high-grade stopes and exploration continues to excite.
All of the above are reasons for the strapping ex-Northern Star operative to get excited.
But at his recent presentation to the Resources Rising Stars conference in Melbourne, Stralow left little doubt about really excites him.
It is the re-rate that will come as the company moves into steady state production and begins to throw off lots of free cashflow.
At that point, the market will shift from valuing the stock on a discounted cashflow basis to a free cashflow (FCF) multiple basis.