Bellevue Gold shares rise as Q1 costs, cash flow beats consensus
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The news: Bellevue Gold reported gold production in line with consensus forecasts in the first quarter, and beat average estimates for operating costs and cash flow in a "pivotal quarter" for the gold miner.
The numbers: Bellevue reported gold production of 35,993 ounces for the quarter, in-line with average estimates. All-in sustaining cost (AISC) of $1,892 per ounce beat consensus forecasts by 6%.
The gold miner reaffirmed its full-year production guidance of 165,000 to 180,000 ounces, and project AISC of $1,750 to $1,850.
Free cash flow of $11 million came in $41 million ahead of consensus.
Its share price was up 4.75% to $1.54 in early trading and over the past 12 months has risen 3%.
The context: RBC Capital Markets analyst Alex Barkley noted that Bellevue's Q1 AISC was just above the miner's full-year guidance range, despite market expectations that production should rise and unit costs should fall through the year.
However, he flagged that while mined tonnes increased, grades were lower, likely as more run-of-mine material was incorporated into lower-grade ore.
What they said: "It was a pivotal quarter for Bellevue as we took the first steps in our five year growth plan," said Bellevue managing director Darren Stralow.
"As part of our strategy, we completed several key infrastructure projects, providing ample ventilation, pumping and power upgrades.
"These were important achievements because they are already underpinning increases in mine development and ore movement rates."
RBC's Barkley said: "Today’s cash flow beat should help allay some shorter-term concerns while [Bellevue] unlocks the longer-term potential of the mine."
The sources: ASX announcement, RBC Capital Markets research
