BGL - Share Price forecast and results, page-9

Savvy investors tune in for more inventory growth at Bellevue Gold

Plus, beaten-up Syrah wins an analyst’s heart while the bidding race for Cardinal puts the spotlight on fellow West African gold explorer Tietto.

6th November 2020
Barry FtizGerald
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No big move either way in the gold price in response to Biden’s US election victory, as confirmed by Sportsbet paying out on Thursday morning at any rate.
There might yet be a big gold price swing but in the meantime the big-name gold stocks are being left to drift on the basis that they are fully priced for circa $US1900/oz gold.
In the absence of gold doing something to wake up the trading desks, the focus has shifted to the explorers/developers making a difference to their story with the drill bit.
That has been noticeable this week in Bellevue (BGL) which has ticked up to $1.23, giving it a market cap of just over $1 billion.
The drive in the stock comes from its previous advice that it would be updating its resource estimate for its namesake project in WA sometime in the December quarter.
So, it can’t be far off now. Bellevue currently stands at 860,000oz at a spectacular 11.6g/t gold in the indicated category, part of the overall 2.3Moz global resource grading 10g/t.
The company has been adding ounces in quick fashion ever since it acted on a hunch back in 2017, when it was a 5c stock with a $13m market cap, that the historic Bellevue mine had more to give.
Discovered back in the 1890s, Bellevue had a recorded production history of about 800,000oz at a grade of 15g/t. It produced its last gold in 1998 and not much happened until Bellevue (formerly Draig) came along.
While anticipation of the coming resource upgrade has been driving the stock recently, there is also growing interest in what Bellevue’s regional exploration efforts can come up with to add to the story.
It is a story that has the overlay of Bellevue being an obvious takeover candidate for the multiple mill owners in the district. No matter who they are, they would all love to be putting some 10g/t dirt through their mills with gold at $US1900.