‘Pivotal quarter’: Here’s why the Bellevue Gold share price is outperforming today

a woman in a business suit holds a large solid gold bar in both hands with a superimposed image of a gagged gold line tracking upwards and featuring a swooping curved arrow pointing upwards.a woman in a business suit holds a large solid gold bar in both hands with a superimposed image of a gagged gold line tracking upwards and featuring a swooping curved arrow pointing upwards.

Shares in Bellevue Gold Ltd (ASX: BGL) are hitching up today and now trade over 2% higher at $1.01 apiece.

Investors are bidding up the Bellevue Gold share price today following the release of its quarterly activities and cash flow statements’.

TradingView Chart

Bellevue Gold share price spikes on updates

It’s a tale of two stories with Bellevue’s activities and cashflow updates today; one of numbers and one of words.

On the activities side, Bellevue said it achieved “[o]utstanding progress on both the geological and project development fronts during the quarter.”

This is underpinned by the inferred resource drilling program at its Bellevue Gold project that is set to deliver a a resource estimate sometime in the coming three months, it says.

Bellevue also awarded a mining contract to the underground services division of Develop Global Ltd (ASX: DVP) for development and production activities at its flagship project

Contract terms are linked with forecasts set out in Bellevue’s stage 2 feasibility study announced back in September last year.

Finally, the company also completed installation of a 330-person mine camp at its project site, the first of several significant surface infrastructure works yet to be completed. Completion is expected in Q1 FY23, it says.

On the numbers side, Bellevue hasn’t realised any cash receipts from customers yet, and hence recorded a net loss of $2.8 million in cash from operations.

It also printed a net loss of $19.8 million in cash from investing activities, slightly less than last quarter. However, the bulk of this was from a $14 million exploration and evaluation expense that was also capitalised on the balance sheet.

Bellevue also realised a $21 million net inflow from proceeds drawn in from the exercise of options this quarter, adding to a $36 million equity raise last quarter.

At the end of the period, Bellevue was “well capitalised” with $150.9 million in cash and equivalents after running through the last three months.

Management commentary

Speaking on the announcement, Bellevue Managing Director, Steve Parsons said:

Everything is proceeding to plan. The project is fully funded, the optimisation studies are delivering favourable cost and productivity results and the successful infill drilling has set us up for a Reserve update this quarter.

The award of the mining contract to Develop means we have a highly experienced team of WA underground mining specialists working with our first-rate management to bring the project into production and set it up for a strong future.

We are now putting these work streams together to complete a comprehensive project update ahead of the next phase of mine development and awarding more key contracts.

In the last 12 months the Bellevue Gold share price is flat after shooting 20% higher since January 2022.

The post ‘Pivotal quarter’: Here’s why the Bellevue Gold share price is outperforming today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Bellevue Gold right now?

Before you consider Bellevue Gold, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bellevue Gold wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

More reading

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/WIbqL9y

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s