BGL surged 5.8% on Monday, making it the main board’s fifth-best performer. However, it’s down -6.9% Year-to-date compared to heavyweight Evolution mining (EVN), which is up +34%, a fairly good gauge of the sector through 2024. The stock plunged in July after the company raised $150mn via an institutional placement at $1.55, with proceeds used to repay debt, unlocking project-free cash flow to self-fund its expansion in line with its updated five-year growth plan. However, this same growth plan also revealed significantly higher-than-expected costs in FY25.
- We can see ongoing strength in BGL, assuming gold pushes towards $US2800 and beyond into Christmas, but it’s not our preferred play.
- The stock is potentially going to encounter selling above $1.60 as investors who took up stock in July’s placement start to show a profit.
MM is cautiously bullish towards BGL
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