Bellevue Gold Limited · ASX:BGL
Bellevue Gold — Investor Presentation (July 2024)
64 slides from Bellevue Gold's investor presentation, Jul 25, 2024
Slide 1: 5 Year Growth Plan & Equity Raising
5 Year Growth Plan & Equity Raising Production growth , lower costs, increased margins and financial returns July 2024 Not for release to US wire services or distribution in the United States
Slide 2: Disclaimers & Compliance Statements
Disclaimers & Compliance Statements This presentation has been prepared by Bellevue Gold Limited (ABN 99 110 439 686) (Company or Bellevue) (ASX: BGL) and is authorised by the Managing Director & Chief Executive Officer of Bellevue. DISCLAIMER This presentation has been prepared by the Company based
Slide 3: Disclaimers & Compliance Statements (cont)
Disclaimers & Compliance Statements (cont) Forward-looking All-In-Sustaining Cost estimates have been prepared on a real basis at a project level (i.e. not adjusted for possible future inflation and do not include the effects of corporate costs) and assume an FY25 gold price of A$3,500/oz of gold, d
Slide 4: Disclaimers & Compliance Statements (cont)
Disclaimers & Compliance Statements (cont) EXPLORATION TARGET This presentation refers to the following Exploration Target based on the southern plunge extent of the Bellevue Lode system to 800m of depth: Tonnes Grade Ounces 4-10MT 8-10 g/t gold 1.5-2.5Moz The potential quantity and grade of the Exp
Slide 5: Disclaimers & Compliance Statements (cont)
Disclaimers & Compliance Statements (cont) DISCLAIMER The underwriters are acting as joint lead managers and underwriters (Joint Lead Managers) to the A$150m institutional placement (Placement). A summary of the key terms of the underwriting agreement between the Company and the Joint Lead Managers
Slide 6: Disclaimers & Compliance Statements (cont)
Disclaimers & Compliance Statements (cont) NOT AN OFFER IN THE UNITED STATES The distribution of this document in jurisdictions outside Australia may be restricted by law and you must observe any such restrictions. Failure to comply with these restrictions may constitute a violation of applicable se
Slide 7: Contents
Contents 01 Bellevue positioned for growth 02 5 Year Growth Plan 03 Proposed debt amendment and equity raise overview Appendix A Project Update and Overview of the 5 Year Growth Plan B Company Overview C Key Risks D International Offer Restrictions E Underwriting Agreement
Slide 8: Bellevue – positioned for growth
01 Bellevue – positioned for growth
Slide 9: Strong execution to date… strategy now to accelerate growth
Strong execution to date… strategy now to accelerate growth Following the successful delivery of the Bellevue Gold Project, the focus is now on growth and margin expansion. Proposed debt amendment to provide financial flexibility to accelerate growth through the 5 Year Growth Plan Successful project
Slide 10: Successful project delivery
Successful project delivery Commercial production achieved in May 2024 with 2H FY24 production of 80,043 ounces in line with guidance, delivering free cash flow of A$41m in the June Qtr June Quarterly highlights 2H FY24 gold production of 80,043 ounces – guidance achieved 42,705 oz produced in J
Slide 11: Production Growth of +45% by FY28 in a Tier 1 mining district
Production Growth of +45% by FY28 in a Tier 1 mining district Production is set to grow at a 13% CAGR to FY283 Bellevue to become the only pureplay 200koz2 pa+ gold producer with >5g/t head grade in Tier 1 jurisdiction Tier 1 gold deposits with >200koz production & 5g/t Au head grade1,2 Bellevue pro
Slide 12: 5 Year Production Growth to +250koz pa
5 Year Production Growth to +250koz2 pa Production is set to grow 45% progressively over the next 4 years at first quartile costs ASX Australian production benchmarking (koz pa Au)1 6,930 1,675 +45% Production Growth 717 455 418 FY28+ FY25 293 FY24 250koz2 227 165-180koz 175 159 115 110 105 103 96ko
Slide 13: Exploration to underpin Resource growth
BGL Exploration to underpin Resource growth Project continues to grow – following successful commissioning and ramp up exploration spend to add low-cost ounces to mining inventory +193% Share Price Performance Last 5 years Mineral Resource over time (Moz) Successful commissioning and ramp up 1.5-2.5
Slide 14: 5 Year Growth Plan
“~~ BELLEV ma GOLD a 02 5 Year Growth Plan
Slide 15: 5 Year Growth Plan to +250koz pa and lower costs
5 Year Growth Plan to +250koz1 pa and lower costs Multi-year Production & Cost Guidance FY25 Guidance and Growth 260 2,000 FY25 to deliver production of 165,000-180,000 ounces at a project AISC of A$1,750 - A$1,850 per ounce 240 1,900 Focus on UG mine expansion; Tribune UG establishment and accele
Slide 16: Investing now for the future
Investing now for the future Benefits of investing in life of mine infrastructure in FY25/26 FY25-FY26 investment will create life of mine platform to be a +250koz1 pa producer Increased economies of scale delivers a decrease in AISC of A$250/oz from FY25 to FY29 Increase from 5 to 7 independe
Slide 17: Capital investment to de-risk growth plan and facilitate exploration upside
Capital investment to de-risk growth plan and facilitate exploration upside Investment today to drive production to 250koz1 pa Growth and Expansion capex (A$m) # Key growth investment areas Total growth & expl. capex Development & Infrastructure A$175m Development & Infrastructure Accelerated deve
Slide 18: Growth in annual mining rate to 1.6Mtpa by FY27
A Growth in annual mining rate to 1.6Mtpa by FY27 Installed infrastructure during FY25 & FY26 to unlock schedule expansion 5 mining areas increasing to 7 Underground Mining Tonnes per annum High grade Medium grade Low grade 2,000,000 8.0 1,800,000 7.0 High grade 1,600,000 6.0 1,400,000 1,200,000 5.0
Slide 19: Significant FY25-26 investment in life of mine infrastructure
A Significant FY25-26 investment in life of mine infrastructure Continue to establish access to multiple ore bodies; continued mining ramp up Breakdown of underground Establish Tribune portal; access to ore and to Southern drill drive growth capital Primary Ventilation Upgrade, including assoc
Slide 20: 3.2Moz Resource – targeting significant growth potential
B 3.2Moz Resource – targeting significant growth potential FY25-FY26; decline development opens a major ~1.5-2.5Moz at 8-10 g/t gold Exploration Target1 to the south covering down plunge extent of ore system Current MRE 3.2Moz covers 2.6km of strike2 - new drill platforms cover an extra ~50% unt
Slide 21: Investing A$60m in exploration over the next 2 years for growth
B Investing A$60m in exploration over the next 2 years for growth Geology and Exploration Growth Exploration potential - the current 3.2Moz Resource defined within the top 800m and remains open in all directions No step out exploration has occurred at the project since June 2022 Exploration wi
Slide 22: Simple growth in process capacity to 1.6Mtpa
C Simple growth in process capacity to 1.6Mtpa Currently operating at 1Mtpa – 1.2Mtpa Stage 1 expansion to 1.35Mtpa (A$12 million, FY25) – gravity screen upgrade and additional Stage 2 – Stage 1 - gravity concentrator, thickener modifications. Gravity Upgrade Extra Ball Mill Stage 1 - Thickener
Slide 23: Proposed debt amendment and equity raise overview
03 Proposed debt amendment and equity raise overview
Slide 24: De-geared to fund growth
De-geared to fund growth Proactive amendment of debt arrangements following recent achievement of commercial production as Bellevue moves into the next phase of growth Overview of the proposed debt amendment Bellevue and Macquarie Bank have executed a Facility Amendment Letter in respect of the pr
Slide 25: Overview of equity raising
Overview of equity raising Bellevue is conducting an underwritten institutional placement to raise A$150 million and a non- underwritten Share Purchase Plan to raise up to A$25 million (together, the Offer) Offer structure • Bellevue is conducting : and size – an underwritten institutional placement
Slide 26: Sources and uses of funds
Sources and uses of funds Proposed debt reduction unlocks project free cash flow to fund the 5 Year Growth Plan Retire debt Proposed repayment of A$120m of debt (once debt amendments fully documented) unlocks free cash flows to be applied to self-funding the Sources of Funds1 A$m 5 Year Growth Pla
Slide 27: Pro-forma financial position
Pro-forma financial position Equity raising delivers a net cash position and deleverages the balance sheet to self-fund the 5 Year Growth Plan Pro-forma capital structure Shares a) Liquidity1 b) Bank Debt4 Net Cash/ (Debt) [a+b] (m) (A$m) (A$m) Pre-equity raise 1,177 76 (219) (143) Institutional Pla
Slide 28: Equity raising timetable
Equity raising timetable Event Date1 Placement Trading halt Thursday, 25 July 2024 Announcement of Placement and SPP Thursday, 25 July 2024 Trading halt lifted and announcement of completion of Placement Friday, 26 July 2024 Settlement of Placement Shares Tuesday, 30 July 2024 Allotment of Placement
Slide 29: Investment highlights
Investment highlights Exceptional Production Experienced Balance Exploration asset growth management sheet upside Bellevue forecast to 5 Year Growth plan Track-record of optimised Underground be the only delivers production tier-1 gold miners Balance sheet de- development and pureplay +200koz1 incre
Slide 30: Project Update and Overview of the 5 Year Growth Plan
A APPENDIX Project Update and Overview of the 5 Year Growth Plan 30
Slide 31: Investment in infill grade control drilling
Investment in infill grade control drilling A$23 million investment in infill drilling over past 24 months, excellent resource to mining reconciliation Delivers a robust high-grade and high confidence Reserve Marceline Paris Portal MiningArea 1.8m @ 123.3 g/t gold 1.9m @ 85.1 g/t gold 3.1m @ 21.8 g/
Slide 32: Increasing ore headings to drive production growth
Increasing ore headings to drive production growth Deacon Main 1058 200 Bellevue 1095 200 Five independent mining areas in ore development by Q1 25FY with multiple development levels Stoping underway at Upper Armand, Lower 129.0g/t 110.2g/t Armand, Bellevue South, Deacon and 35.0g/t 10.4g/t 0.2g/t
Slide 33: Stoping ramping up; excellent performance to date
Stoping ramping up; excellent performance to date Stoping ramp up continues with increased active stoping areas and development levels Cavity monitoring of voids to date highlight favourable stoping conditions o Minimum widths achieved o Target dilution achieving better than design (less than 10
Slide 34: Deacon Main – Infill drilling defining exceptional grade
Deacon Main –Infill drilling defining exceptional grade New ‘high-grade shoot ’ identified along 1.5Moz Deacon lode through underground grade 7 control close spaced drilling Now defined over 260m down plunge, exceptional grade and continuity shoot is an important contributor to FY25 schedule Dea
Slide 35: Deacon high-grade shoot – Multiple repeat shoots to drive mine plan
Deacon high-grade shoot – Multiple repeat shoots to drive mine plan New ‘High-grade shoot’ defined by infill drilling with exceptional grade and width Association with massive to semi massive pyrrhotite, analogous intersections identified in broad drilling Potential for a further six high-grad
Slide 36: Bellevue South – Key FY25 Mining area
Bellevue South –Key FY25 Mining area Offset continuation of the Bellevue Lode to the South High-grade ore shoot in FY25 schedule recent grade control shows robust and wide orebody OPEN to south with drill platform to be established for extensional drilling North Current development FY25 schedu
Slide 37: Deacon Main high-grade shoot - 1018 level
Deacon Main high-grade shoot- 1018 level Semi massive pyrrhotite 110.5g/t 74.9g/t 6.8g/t 1.9g/t 37
Slide 38: Exploiting the competitive exploration advantage
Exploiting the competitive exploration advantage Conductive mineralisation drives more efficient discovery and target appraisal Several areas highlight the potential for future Resource growth with further drilling outside of known Resource areas STRONG DHEM CONDUCTOR Tribune Deacon Main vein te
Slide 39: System remains OPEN for repeat discovery
System remains OPEN for repeat discovery Bellevue System remains open at depth Shear 1.4Moz Parallel structure at depth in deep EIS funded drilling Deacon Shear 1.6m @ 9.3 g/t gold and 1.2m @ 9.0 g/t gold structure at depth 1.5Moz Viago analogue targets at Lucien remain ready for follow up dri
Slide 40: Deacon corridor open for low-risk Reserve growth
Deacon corridor open for low-risk Reserve growth Currently includes 1.5Moz of Inferred and Indicated Resources, high priority drill targets from existing UG FY25 budget covers immediate extension drilling with dedicated UG diamond rig North 3.5m @ 10.6 g/t gold 1km 8.5m @ 9.2 g/t gold Deacon Mai
Slide 41: Mineral Resource and Ore Reserve Estimates
Mineral Resource and Ore Reserve Estimates INDEPENDENT JORC 2012 RESERVE ESTIMATES FOR THE BELLEVUE GOLD PROJECT Tonnes Grade Contained Ounces Ore Reserve (Mt) (g/t Au) (Moz) Probable High Grade Underground Ore Reserve 6.83 6.1 1.33 Probable Low Grade Underground Ore Reserve 2.32 2.1 0.15 Total Prob
Slide 42: Company Overview
Can BELLEVUE GOLD APPENDIX Company Overview
Slide 43: Corporate overview
Corporate overview Board Corporate snapshot (pre-equity raise) Non-Executive Independent Chairman Kevin Tomlinson Shares on issue 1,177,341,851 Managing Director & CEO Darren Stralow Share price (24 July 2024) A$1.83/sh Non-Executive Director Steve Parsons Market cap A$2,155m Non-Executive Independe
Slide 44: Sustainability is core to BGL’s vision and purpose
Sustainability is core to BGL’s vision and purpose Partnership with Zenith to deliver up to 80% of green energy supply from solar and wind power Progress on the 29MWh Battery Energy Storage Renewable Energy Construction on track for sector leading 89.7 MW hybrid power station consisting of: 24 MW
Slide 45: Peer comparison data (1/2)
Peer comparison data (1/2) Production Basis of data AISC Basis of data Source Document Koz x A$/oz x Peers1 Alkane 75 FY25G 2,500 FY25G “Tomingley FY2024 Production Update”, released on 4 July 2024 “Update – FY24 Gold Production 113koz”, released on 4 July 2024 and Capricorn MarQ FY24 report release
Slide 46: Peer comparison data (2/2)
Peer comparison data (2/2) Production Grade AISC1 Basis of data Source Document Koz g/t A$/oz X Peers Agnew/Lawlers 245 5.7 1,787 CY23A Gold Fields 2023 Annual Financial Report, released on 28 March 2024 Granny Smith 284 5.0 1,634 CY23A Gold Fields 2023 Annual Financial Report, released on 28 March
Slide 47: Key Risks
Aa BELLEVUE GOLD C APPENDIX Key Risks
Slide 48: Key Risks
Key Risks In this risks section, Company refers to Bellevue Gold Limited and includes its subsidiaries where the context permits. The Company considers that the following list, which is not exhaustive, represents some of the key risk factors relevant to the Bellevue Gold Project (Project) and an inv
Slide 49: Key Risks (cont.)
Key Risks (cont.) In addition to the above, the Company’s planned increase to production capacity may be affected by factors including, but not limited to: the opening of additional working areas to supplement existing working areas (which is anticipated to occur in a staged-fashion to minimise risk
Slide 50: Key Risks (cont.)
Key Risks (cont.) Additionally the Company has entered into zero cost collars with the following volumes, put and written call strikes: Average Average Call Quarter Ounces (Au) Put strike strike (A$) (A$) Q2 FY25 11,250 3,500 3,772 Q3 FY25 6,750 3,500 3,840 Q4 FY25 13,500 3,500 3,900 A further rise
Slide 51: Key Risks (cont.)
Key Risks (cont.) 9. Access There is a substantial level of regulation and restriction on the ability of exploration and mining companies to have access to land in Australia. Negotiations with both Native Title holders and land owners/occupiers are generally required before gaining access to land fo
Slide 52: Key Risks (cont.)
Key Risks (cont.) 11. Personnel and operating costs The Western Australian (WA) resource economy is currently very active with a shortage of skilled labour and historically strong gold prices. There is a high demand in WA for skilled workers from competing operators. Tightening of the labour market
Slide 53: Key Risks (cont.)
Key Risks (cont.) 14. Additional requirements for capital The Company may require further financing to continue to operate in the future if, for example, there is a material departure from the Company’s production or cost guidance for the Project. Whilst the Board considers that its existing cash, p
Slide 54: Key Risks (cont.)
Key Risks (cont.) 17. Environmental risk Mineral extraction and processing is an industry that has become subject to increasing environmental responsibility and liability. Future legislation and regulations or environmental regulations applying to mining operations may impose significant environment
Slide 55: Key Risks (cont.)
Key Risks (cont.) 22. Availability of tax losses The estimated tax losses include tax losses to 30 June 2023 of ~A$187m. The Company has received external advice that the Company should continue to satisfy the Continuity of Ownership test (COT) under Division 165 of Income Tax Assessment Act 1997 (C
Slide 56: Key Risks (cont.)
Key Risks (cont.) 28. Cyber risk Breaches of cyber security is a growing global risk as the volume and sophistication of threats have increased. Risks include unauthorised access to data and information leading to reputational damage and/or risk of litigation; malicious attacks that result in outage
Slide 57: International Offer Jurisdictions
D APPENDIX International Offer Jurisdictions
Slide 58: International Offer Restrictions
International Offer Restrictions This document does not constitute an offer of new ordinary shares (“New Shares”) of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any
Slide 59: International Offer Restrictions (cont.)
International Offer Restrictions (cont.) European Union (excluding Austria) This document has not been, and will not be, registered with or approved by any securities regulator in the European Union. Accordingly, this document may not be made available, nor may the New Shares be offered for sale, in
Slide 60: International Offer Restrictions (cont.)
International Offer Restrictions (cont.) Norway This document has not been approved by, or registered with, any Norwegian securities regulator under the Norwegian Securities Trading Act of 29 June 2007 no. 75. Accordingly, this document shall not be deemed to constitute an offer to the public in Nor
Slide 61: International Offer Restrictions (cont.)
International Offer Restrictions (cont.) United Kingdom Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Services and Market
Slide 62: Underwriting Agreement
E APPENDIX Underwriting Agreement
Slide 63: Underwriting Agreement
Underwriting Agreement Bellevue has entered into a placement agreement with the Joint Lead Managers, under which the Joint Lead Managers have agreed to act as joint lead managers, bookrunners and underwriters of the Placement (Placement Agreement), subject to the terms and conditions of the Placemen
Slide 64: Underwriting Agreement (cont.)
Underwriting Agreement (cont.) (xi) there is introduced into the Parliament of the Commonwealth of Australia or any State or Territory of Australia a law or any new regulation is made under any law, or a government agency adopts or announces a new policy (other than a law or policy which has been an