Bellevue Gold Updates FY25 Production Guidance and Operational Progress
BGL (BGL) Share Update January 2025 Sunday 5th
Bellevue Gold Revises FY25 Production Guidance Amidst Operational Challenges
Bellevue Gold Limited (ASX: BGL) has released a preliminary production update for the December 2024 quarter, announcing adjustments to its FY25 production guidance amidst operational challenges.
Instant Summary:
- December 2024 quarter gold sales: 26,230 ounces at A$3,339/oz.
- FY25 production guidance revised to 150,000 – 165,000 ounces.
- Cash and gold on hand totaled ~A$81 million with A$100M debt.
- Operational delays due to geological variability and equipment downtime.
- Processing plant achieved a 1.25Mtpa rate with ~95% recovery in December.
Production and Financial Overview
Bellevue Gold Limited reported gold sales of 26,230 ounces for the December 2024 quarter at an average sale price of A$3,339 per ounce. The company plans to release the final all-in sustaining costs (AISC) in its quarterly report at the end of January 2025.
Despite anticipated production growth in the second half of FY25, Bellevue has revised its FY25 gold production guidance to 150,000 – 165,000 ounces. The forecast for the second half of FY25 is approximately 90,000 ounces, aligning with the higher end of the original guidance range.
Operational Challenges and Progress
The December quarter production was impacted by lower grades as mining progressed through the outer edges of the orebody. High-grade stoping continued in the Deacon area, while development in the Armand, Marceline, and Bellevue South areas faced increased geological variability.
Development rates averaged ~270 meters per jumbo per month, affected by interactions between production and development activities and equipment downtime. However, the Tribune area showed strong progress with development rates exceeding 300 meters in December 2024.
Processing and Financial Position
The processing plant operated at a 1.1 million tonnes per annum run rate, with improved recovery performance. December 2024 saw a processing rate of 1.25Mtpa and a recovery rate of ~95%.
Bellevue ended the quarter with cash and gold on hand totaling approximately A$81 million, down from A$109 million in the previous quarter. The company holds A$100 million in debt, with no principal repayments due until 2027.
The revision in production guidance reflects operational challenges and geological variability. This could impact investor sentiment, as the reduced guidance may lead to concerns about the company's ability to meet its long-term production targets. The company's strong cash position and deferred debt repayments provide some financial stability.
Investor Reaction:
Analysts may express concern over the operational delays and revised production guidance. However, the company's strategic focus on high-grade areas and strong processing performance may mitigate some negative reactions.
Conclusion:
Investors should closely monitor Bellevue Gold's upcoming quarterly report for further details on AISC and operational progress. The company's ability to navigate these challenges will be crucial for maintaining investor confidence and achieving its production targets.