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.
Bellevue Gold share price spikes on updates
It's a tale of two stories with Bellevue's activities and cash flow 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 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 the 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.
