Bellevue cuts guidance and unveils $157m placement as COO quits
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The news: Bellevue Gold has revised down its full-year production guidance and scrapped its five-year growth plan after "uncharacteristic geological factors" hindered the gold miner's output in the March quarter.
The numbers: Bellevue's full-year guidance, which was heavily weighted to the second half of the year, has been revised from between 150,000 and 165,000 ounces, to a range of 129,000 and 134,000 ounces.
Gold production in the March quarter totalled 25,146 ounces, compared to 26,230 ounces in the previous quarter.
Bellevue said its FY26 production outlook is anticipated to be 150,000 ounces, with a further expansion of its processing plant now on hold and a scaled back mining fleet resulting in a $75 million reduction in growth capital expenditure.
The company has consequently announced a $156.5 million placement to enable closure of near-term hedged contracts and to provide working capital to execute on a revised mine plan and de-risk its balance sheet.
Of the $156.5 million raised in the placement, $40 million will be added to the balance sheet as additional working capital, with the remaining funds used to close out the near-term hedges.
New shares under the placement will be issued a 85 cents, representing a 25.8% discount to Bellevue's last traded price of $1.145.
The context: In response to its recent operational performance, Bellevue has commenced a strategic review of internal and external options. The review will consider "a range of initiatives", the company said, aimed at improving performance, consistency and cash flow across all aspects of the operation.
Meanwhile, Bellevue's chief operating officer Bill Stirling will step down, having served in the role since 2023.
Bellevue also confirmed that it has recently received a number of unsolicited approaches over a "potential control transaction" for the miner. Bellevue said it has received no formal proposals or offers, but it will consider "all options that may deliver more value for shareholders" as part of its strategic review.
Bellevue shares have been in a voluntary suspension since the start of the month, when the miner flagged changes to its full-year production guidance.
The source: ASX
