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Bellevue aims for 45% production increase by FY 2028, announces $150M placement

ASX News, Materials
ASX:BGL      MCAP $1.443B
25 July 2024 10:54 (AEDT)
Block of gold rock isolated on white

Source: Adobe Stock.

Following the opening of its namesake WA gold mine in March this year, and a ramp up the following month, Bellevue Gold Ltd (ASX:BGL) has announced ‘5-year growth plan’, which seeks to position the company as a low-cost, high-grade player in the Australian gold space.

Central to the plan is Bellevue’s goal of pushing production out to 250,000 ounces per year (oz pa) by the 2028 Financial Year- representing growth of 45%, with this being underpinned by growth in underground ore movement.

The latter is planned to increase from around1.0Mtpa in FY25 to approximately 1.6Mtpa two years later.

The plan also intends to see the project’s earnings and production profile grow significantly, with an additional goal of reducing its AISC profile to a range of A$1,500-1,600/oz by the 2029 Financial Year.

The company told the market that with the delivery of this plan, Bellevue would become ‘one of only seven gold projects in the world producing more than 200,000 ounces at 5 grams per tonne or more in a Tier One jurisdiction’.

To facilitate this, Bellevue has also announced a fully underwritten A$150 million institutional placement, which is set to support the proactive partial repayment of its Project Loan Facility with Macquarie Bank Ltd (ASX:MGQ), in order to open up operating cash flows to self-fund the plan.

Looking at data for the current operation, the company said production guidance for the 2025 Financial Year was set at a range of 165 to 180koz, with an AISC for the project of between A$1,750 and 1,850 per ounce.

Bellevue has been trading at $1.83.

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