The Bellevue gold mine in WA has delivered operational free cash flow of $41 million in the June quarter, as the company announced its strategic five-year growth plan and equity-raising initiative to boost growth, reduce costs, and increase margins.
The plan aims to enhance financial flexibility and free up operating cash flows for investment in the 2025 financial year (FY25).
Bellevue’s managing director Darren Stralow said that the company is in a strong position for a healthy future.
“With commissioning successfully completed, commercial production declared and operational free cash flow of $41m generated in the past quarter, we are now ideally placed to position the company for a strong future marked by a lower risk profile and a growing production outlook,” he said.
“We will significantly de-risk the balance sheet and increase production and free cash flow in the process.
“This will enable us to unlock the full value of the Bellevue asset and leverage existing infrastructure in a more rapid manner, in turn achieving greater scale, lower costs and increased financial returns.”
The company’s five-year growth plan sets a path for organic growth, targeting an annual production increase to 250,000 ounces by the 2028 financial year. The plan projects total production will include 10 per cent inferred mineral resources and 90 per cent indicated mineral resources, with the first three years relying on only five per cent inferred mineral resources.
By executing this growth plan, Bellevue aims to solidify its position as a high-grade, low-cost gold producer on the ASX. The company said it will become “one of only seven gold projects worldwide producing over 200,000 ounces annually at a grade of five grams per tonne or more in a Tier 1 jurisdiction”.
To facilitate this goal, the company announced a fully underwritten $150 million institutional placement, which will support a partial repayment of its project loan facility to open up operating cash flows to self-sustain the plan.
For FY25, Bellevue forecasts production of 165,000–180,000 ounces at an all-in sustaining cost of $1750–1850 per ounce.
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