Bellevue Gold’s (ASX:BGL) share price leaps 9% to new record highs

The Bellevue Gold share price charged higher today, up 10.16% higher at the close of trade. We take a look at why.

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The Bellevue Gold Ltd (ASX: BGL) share price charged higher today, closing out the day 10.16% higher. That far outpaces the 0.8% gains posted by the S&P/ASX 300 (INDEXASX: XKO) at this same time.

Bellevue Gold shareholders have had little to complain about since the company began trading on the ASX in June 2018.

Which is not to say the gold miner escaped the ravages of the COVID-19 market selloff earlier this year. It didn’t.

From 24 February through to 19 March, Bellevue’s share price plummeted 56%. But it came roaring back from there, with shares rocketing 377% higher from the March lows.

Year-to-date the share price is up 147%, currently trading at a new record high of $1.35 per share.

What does Bellevue Gold do?

Bellevue Gold is a gold explorer advancing the historic Bellevue Gold Mine in Western Australia, approximately 30 kilometres north of Leinster. From 1986–1997 this was one of Australia’s highest-grade gold mines. But it was shuttered until 2017, when Bellevue became the first company to apply modern exploration techniques.

Since commencing work, Bellevue has discovered numerous high-grade deposits. The company anticipates further discovery success as it continues to drill with multiple rigs during 2020.

Why is the Bellevue Gold share price up 10% today?

The Bellevue Gold share price looks to be rising on 2 factors.

First, the price of gold has gained 3.8% since last Thursday, 29 October. And it’s up 2.0% over just the past 2 days.

Gold miners’ share prices tend to rise – and fall – significantly more than the price of the yellow metal they dig from the ground. That’s why we see a number of other ASX gold shares trading higher today. Like the Resolute Mining Limited (ASX: RSG) share price, up 8.9%. And the St Barbara Ltd (ASX: SBM) share price, up 7.6%.

Investors may also be drawn to Bellevue Gold’s shares today following the release of the company’s Inaugural Sustainability Report.

Environmental, social, and corporate governance (ESG) issues are becoming increasingly important to a growing number of retail and institutional investors.

In its report, the company notes that as it continues to move its Bellevue Gold Project towards production, that a key feature will be identifying opportunities to minimise any adverse environmental impacts of its activities, including reducing emissions that could cause climate change.

Bellevue stated it is “also committed to best practice when considering human capital and good governance in its operations”. The company announced its intention to form a dedicated Sustainability Committee.

Bellevue’s ESG credentials will likely only make the company more appealing to many ASX investors. But, as with all gold explorers, the price of the yellow metal – and how much they uncover – will be the biggest factors determining Bellevue Gold’s future share price.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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