Bellevue Gold swings to profit after first gold production
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The news: Gold producer Bellevue Gold announced its first full-year profit in FY24 following the start of commercial production at its Bellevue gold mine in Western Australia.
The numbers: Bellevue post net profit after tax of $75 million in FY24, following a $24.8 million loss a year earlier. Bellevue reported production of 93,600 ounces of gold, driving revenue of $298.4 million.
The company guided FY25 production of between 165,000 and 180,000 ounces at all-in sustaining costs of $1,750 to $1,850 per ounce.
Production is expected to be back-ended to the second half of FY25 as further development headings and underground advance rates ramp up to a forecast run rate of 1.35 million tonnes per year by the end of FY25.
In July, Bellevue unveiled a five-year growth plan under which production is forecast to increase to 250,000 ounces a year by FY28, reducing project AISC to between $1,500 and $1,600 per ounce by FY29. It also launched $150 million discounted institutional placement, which saw its shares tumble last month.
The context: Bellevue noted that the result was a culmination of a six-year journey, with first production at its Bellevue gold mine signalling the company's turning point from explorer and project developer to a "fully-fledged producer".
The company said the mine's first production was delivered on time and on budget, at a time when the resources industry in both Australia and globally is "beset by prolonged approvals processes, soaring cost inflation and labour shortages".
What they said: Bellevue managing director Darren Stralow said: "We achieved many major milestones during the year as we made the transition to gold producer".
"With the recent successful capital raising enabling us to reduce debt significantly, freeing up cash flow to help fund growth, we are very well-positioned to increase production, cash flow and mine life," he said.
The source: ASX announcement
