The Bellevue gold mine near Leinster in the north-western Goldfields was officially opened on Wednesday afternoon, ticking off another major milestone in the company’s journey to make the operation carbon-neutral by 2026.
The miner received belle of the ball treatment from investors for years up until the tail end of 2023 when doubts started to emerge.
Bellevue has become the second-most shorted gold stock on the Australian Securities Exchange thanks to short selling interest nearly doubling since the start of the year, currently sitting at 6 per cent.
Some corners of the market are concerned by Bellevue’s production ramp up not meeting grade expectations since the inaugural gold pour in October, on top of the risk associated with being a first mover on net-zero gold.
“All we can do to get on top of that (the short selling) is to put runs on the board and consistently deliver,” Bellevue chief executive Darren Stralow told The West Australian.
He remains steadfast on the ambition to produce the precious metal without a carbon emissions-intensive process, saying it is what separates Bellevue from its peers.
Bellevue is extracting its 3.1 million tonne resource via a 90 megawatt hybrid energy power system fuelled by solar, wind, thermal, gas and diesel, as well as electric batteries.
“We’ve got an industry-leading target of 2026, the rest of the industry is at 2030, some even at 2050,” Mr Starlow said.
“We believe this differentiated product can command a price premium in the same way conflict-free diamonds do.
“It will also enhance our standing with fund managers who have to increasingly decarbonise their portfolios.”
Mines Minister David Michael — who was at his first mine opening ceremony since taking the portfolio late last year — said the State Government would support a green premium for gold.
The formal start of Bellevue mine’s life comes at an opportune time with the backdrop of a record gold price.
This price party has instigated a spate of merger and acquisition activity in the gold sector, particularly in the mid-tier segment of the market Bellevue is nestled in.
But Mr Starlow all but ruled out getting involved.
“That (doing deals) is not for us now,” he said
“It’s heads down, bums up getting consistent delivery and that steady run rate with operations … the real work begins now.”
