By Rhiannon Hoyle
Bellevue Gold on Monday downgraded its annual production guidance and said it will raise 156.5 million Australian dollars (US$98.4 million) in equity to close some hedge contracts amid record gold prices.
The miner said recent gold production was affected by "some localized geological complexity and some sub-optimal mining practices," and that it now expects fiscal 2025 output to be between 129,000 and 134,000 troy ounces, instead of between 150,000 and 165,000 ounces as previously forecast.
"The company is confident that issues experienced in March 2025 are isolated and that the operational changes being implemented will ensure that any similar occurrences would be identified earlier and managed effectively," Bellevue said.
It withdrew a five-year mine plan and said it expects fiscal 2026 production of roughly 150,000 ounces, with a further expansion of its processing plant on hold.
Bellevue said it has begun a strategic review in response to the recent operational performance. It will explore a range of initiatives aimed at improving consistency and cash flow. Chief operating officer, Bill Stirling, will step down, the miner added.
Bellevue said it will use most of the equity it raises via a fully underwritten placement to close near-term hedge contracts. About A$40 million will be added to the balance sheet as additional working capital, it said.
New stock will be issued at A$0.85 a share, a nearly 26% discount to Bellevue's last traded price on March 26.
The company expects to spend up to A$110.5 million to close out the maximum number of ounces from near-term forward gold sale contracts. About 18,000 ounces of hedging commitments from this quarter have also been restructured, with delivery deferred until early 2028, it said.
"When completed, this is expected to allow a greater proportion of gold production over the remainder of CY25 to be delivered into a strong spot gold market, to generate significant free cash flow over this period," said the miner.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
April 13, 2025 20:46 ET (00:46 GMT)
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