S&P/ASX 200 Index (ASX: XJO) gold share Bellevue Gold Ltd (ASX: BGL) hasn't joined in the broader rally most gold producers are enjoying amid record-high bullion prices.
At least, not yet.
Over the past 12 months, the Bellevue Gold share price has dropped 24%, and it is currently trading at $1.21 a share.
Over this same time, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) – which also contains some smaller miners outside of ASX 200 gold shares – has soared 44%.
A lot of this underperformance stems from the significant capital expenditure required to develop the Bellevue gold project, located in the Goldfields region of Western Australia.
But with an eye on the year ahead, MPC Markets' Mark Gardner believes Bellevue Gold is now trading for a bargain (courtesy of The Bull).
Here's why he has a buy recommendation on the stock.
ASX 200 gold share on the growth path
The first reason Gardner is bullish on the ASX 200 gold share is the quality of its primary asset.
"The Bellevue gold project is one of Australia's highest grade mines," he said.
Then there's the growth outlook.
"Production started in October 2023 and commercial production started in May 2024. The company is poised for significant growth," Gardner said.
He added:
Fiscal year 2025 gold production guidance is between 150,000 ounces and 165,000 ounces. Forecast gold production in the second half of fiscal year 2025 is about 90,000 ounces. The company aims to increase production to more than 250,000 ounces a year within five years.
And the third reason Gardner said this ASX 200 gold share is one to buy is that with the miner now turning a profit, shares are looking bargain priced.
"The company announced a maiden net profit after tax of $75 million in fiscal year 2024. In my view, the stock is undervalued," he said.
What else did Bellevue Gold report?
For the full year FY 2025, the ASX gold share is currently forecasting an all-in sustaining cost (AISC) of AU$1,750 to AU$1,850 per ounce.
Gold production is forecast to be weighted towards the second half of FY 2025, with the miner expecting a run rate of 1.35 million tonnes per annum (Mtpa) by the end of the fiscal year.
Bellevue Gold has budgeted exploration expenditure of $30 million for both FY 2025 and FY 2026 to drill-test exploration targets of 1.5 million to 2.5 million ounces at 8 to 10 grams of gold per tonne.
"We achieved many major milestones during the year as we made the transition to gold producer," Bellevue managing director Darren Stralow said of the ASX 200 gold share's full-year results.
