The Bellevue share price is falling today amidst a wider market selloff after the company announced its quarterly report. We take a look.
The post Why the Bellevue (ASX:BGL) share price is dropping lower appeared first on Motley Fool Australia. –
The Bellevue Gold Ltd (ASX: BGL) share price is trading lower after the company announced both its quarterly cash flow report and activities report. Shares in the miner have been soaring this year thanks to elevated gold prices. At the time of writing today, though, the Bellevue share price is trading 3.36% lower at $1.15. However, it is likely that the sharp drop in the All Ordinaries Index (ASX: XAO) is contributing to its decline.
The Bellevue share price is falling today as the company announced its quarterly report. Despite announcing strong exploration and project development reports, shareholders were left wanting by poor financials.
Bellevue Managing Director, Steve Parsons, said
It was a pivotal quarter for Bellevue as we continued to demonstrate the huge exploration upside, both near the mine and regionally, while at the same time progressing our development pathway at the Bellevue Gold Mine. I have no doubt that our Resources will continue to grow as we develop the project and prepare for production.
In terms of the company’s financials, Bellevue maintained a strong cash position of $149.4 million at the end of September. This follows on from its fully underwritten placement that raised a total of $135 million. For the quarter, the company reported a net loss of $677,000, largely due to exploration costs.
This trend appears likely to continue as the company is set to invest $35 million in exploration and resource definition. The investment, over the next 15 months, will continue Bellevue’s aggressive exploration strategy in parallel with its project development.
About the Bellevue share price
Bellevue is an ASX listed company which boasts one of the highest-grade, under-developed gold discoveries in the world at the historic Bellevue Gold Mine in Western Australia.
As mentioned, the Bellevue share price has soared this year, gaining more than 110% as the company looks to reopen the historic mine. The Bellevue share price reached a 52-week high of $1.32 earlier this month.
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Motley Fool contributor Daniel Ewing 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.