Bellevue Gold (ASX:BGL) has achieved a maiden net profit after tax of $75 million for the year to 30 June 2024.
The announcement tops off a big year for the Perth-based gold producer, which saw the commissioning of its gold mine in Western Australia, and the commencement of commercial production.
The company generated free cash flow of $41 million in the June 2024 quarter from production of 42,705 ounces, highlighting the cash flow potential of the Bellevue Gold Project as production continues to grow.
Managing Director Darren Stralow says the company has achieved major milestones this year, as it transitioned to a gold producer.
“Production commenced in October 2023, and we are pleased to report profit of $75 million for FY24 over the subsequent eight-month production period,” Stralow says.
“This demonstrates the substantial cash flow generating capacity of the project as we grow production and reduce unit costs in the process.”
Bellevue Gold, which has a market capitalisation of $1.61 billion, says its guidance for the financial year 2025 (FY25) is 165,000 to 180,000 ounces at an all-in sustaining cost of $1,750 to $1,850 per ounce, with the production expected to be back-ended to the second half of the financial year.
Development headings and underground advance rates are expected to ramp up to a forecast run rate of 1.35 million tonnes per year by the end of FY25.
The company adds exploration expenditure of $30 million has been budgeted for each of the next two financial years to drill test the exploration target of 1.5 to 2.5 million ounces at 8-10 grams per tonne to the south of the deposit.
Bellevue Gold says this is aimed at increasing the resource base and extending the mine life.
The Bellevue Gold Project lies in Western Australia’s Yilgarn Craton and has a global mineral resource of 3.1 million ounces at 9.9 grams per tonne gold.
Stralow is presenting today (3 September) at the Resources Rising Stars conference in Queensland, in which Mining.com.au is also in attendance.
As at 30 June 2024, the company had $48.687 million cash and cash equivalents at hand, according to its latest annual report.
Write to Aaliyah Rogan at Mining.com.au
Images: Bellevue Gold
