Bellevue Gold Limited (ASX: BGL)Share Price and News

About Bellevue Gold

Bellevue Gold is an Australian gold miner focused on the Bellevue Gold Project in the Goldfields region of Western Australia. Bellevue hosts a global Mineral Resource of 3.1 million ounces at 9.9 g/t gold, including an Indicated Resource of 1.7 million ounces at 11.2 g/t.

Bellevue Gold's Company History

Founded in 2004 as Draig Resources Limited, the company initially explored projects in Mongolia and Western Australia. It adopted the Bellevue Gold name in 2018 after pivoting to gold mining and development in Australia and experiencing success there.

Bellevue’s mine, produced more than 800 000 ounces between 1986 and 1997 at an average grade of ~11 g/t, but was closed in 1997 with the view being that it had run out of life. It was picked up after it had spent 15 years in the hands of Barrick that did little work on the project.

Bellevue began a drilling campaign in the last quarter of 2017 and has never looked back, eventually entering production in 2024. The company forecasts a 10 year mine life and for $2.1bn of free cash flow - and that was ata gold price of A$2,500/oz, only half of what it is now.

However, the past year has proven difficult because grades encountered had been lower than expected. It downgraded production guidance twice and was hit by its hedging contracts which had estimated lower gold prices.

Future Outlook of Bellevue Gold (ASX: BGL)

Bellevue Gold should have a good outlook as a gold miner, but its operational difficulties and hedging contracts have hindered it. There have been rumours that there's been takeover interest and the company has confirmed interest.

It raised A$300m in the last 12 months, staving off collapse for now. It had guided to 129-134,000/oz for FY25, then 150,000/oz for FY26 followed by ~190,000/oz for each of FY27-29, and the Resources pinning this outlook at 90% Indicated with just 10% Inferred and 0% measured.