Bellevue Gold shares plunge 20% after guidance cut, discounted placement
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More news: Bellevue Gold shares opened more than 20% lower after emerging from a two-week trading suspension, and as the gold miner completed a discounted $156.5 million share placement.
Bellevue shares were down 21.4% to 90 cents at 10:30am AEST.
The new shares under the placement will be issued at 85 cents each, representing a 25.8% discount to Bellevue's last closing price of $1.145.
On Monday, Bellevue slashed its production guidance and withdrew its five-year growth plan after lower-than-expected output in the March quarter. The miner also announced a strategic review following its recent operational performance and confirmed the departure of its chief operating officer Bill Stirling.
Bellevue Gold completes discounted $156.5m share placement
The news: Shares in Bellevue Gold will resume trading on Tuesday after the miner completed a discounted $156.5 million share placement to institutional and sophisticated investors.
The numbers: The new shares under the placement will be issued at 85 cents each, representing a 25.8% discount to Bellevue's last traded price of $1.145. The proceeds will be used for closure of near-term hedged contracts, which will boost exposure to high spot prices, and to provide working capital to execute on a revised mine plan and de-risk its balance sheet.
The context: Bellevue said its share sale received strong support from existing and new investors, with overall demand significantly in excess of the placement size.
The company on Monday cut its full-year production guidance for the second time in three months and scrapped its five-year growth plan after "uncharacteristic geological factors" hindered output in the March quarter. Bellevue's full-year guidance, which was heavily weighted to the second half of the year, has now been revised down to a range of 129,000 and 134,000 ounces.
“Coupled with the support of our project lender, we are well funded to deliver significantly improved production and generate strong free cash flow for the remainder of the June 2025 quarter and through FY26,” CEO Darren Stralow told investors.
The source: ASX
