B2Gold Corp is significantly ramping up its investment in the future of its flagship Otjikoto Gold Mine in Namibia, with exploration spending soaring by 57% year-over-year during the second quarter of 2025. This aggressive push, converting to NAD 45.7 million (USD 2.382 million) spent in Q2 2025 compared to NAD 29.1 million (USD 1.514 million) in Q2 2024, underscores the company’s strong belief in the potential of the Otjikoto region, particularly the promising Antelope deposit, to extend the mine’s life well into the next decade.
This substantial exploration budget increase forms a critical part of B2Gold’s strategy announced alongside its robust Q2 2025 financial results. The company reported consolidated gold production of 229,454 ounces, exceeding expectations, and attributable net income of NAD 2.96 billion (USD 154 million), or NAD 2.30 (USD 0.12) per share. Otjikoto itself outperformed, producing 51,663 ounces of gold in Q2, also above forecasts, with cash operating costs a low NAD 10,740 (USD 560) per ounce produced.
Otjikoto’s exploration surge and the antelope promise
The exploration focus at Otjikoto is sharply trained on the Antelope deposit. Following a highly positive Preliminary Economic Assessment (PEA) released in February 2025, B2Gold sees Antelope as a potential low-cost, small-scale underground operation. Crucially, it could supplement processing of low-grade stockpiles planned between 2028 and 2032, maintaining a meaningful production profile for Otjikoto after open-pit mining concludes this year.
The PEA outlined a potential 5-year initial mine life for Antelope, yielding total production of 327,000 ounces, averaging approximately 65,000 ounces per year. Combined with stockpile processing, this could boost Otjikoto’s average annual production to around 110,000 ounces from 2029 through 2032. The NAD 45.7 million spent in Q2, and NAD 81 million (USD 4.213 million) for the first half of 2025 (a 27.5% increase over H1 2024’s NAD 63.5 million / USD 3.303 million), is primarily directed at de-risking this opportunity. An initial NAD 192 million (USD 10 million) budget for 2025 is funding critical early work: advancing planning, securing permits, placing long-lead equipment orders, and completing technical studies like geotechnical, hydrogeological, and metallurgical testing. A final development decision is anticipated in Q3 2025.
The exploration results fueling this optimism indicate the Antelope deposit, currently hosting an Inferred Mineral Resource estimate of 1.75 million tonnes grading 6.91 g/t gold (390,000 ounces), remains open along strike, suggesting strong potential for further resource expansion. The increased exploration expenditure is a direct bet on converting this potential into tangible reserves and a viable future operation.
Otjikoto’s current strength and transition
The exploration surge comes as the existing Otjikoto operation continues to deliver strong results. Q2 2025 saw mill throughput of 883,004 tonnes at a grade of 1.84 g/t gold, with an impressive recovery rate of 98.7%. All-in sustaining costs (AISC) were a competitive NAD 15,823 (USD 825) per ounce sold, lower than expected due to higher sales volumes and lower sustaining capital, partially offset by royalties linked to the strong realized gold price of NAD 63,191 (USD 3,295) per ounce.
However, Otjikoto is in transition. Open-pit mining is scheduled to conclude in Q3 2025, shifting the focus entirely to the underground Wolfshag mine, expected to operate into 2028. Capital expenditures in Q2 totaled NAD 90.3 million (USD 4.709 million), mainly for Wolfshag development and equipment rebuilds. The exploration focus on Antelope is designed to bridge the gap beyond Wolfshag’s current projected end date.
Financial backing and corporate context
B2Gold is funding this ambitious exploration program and broader operations from a position of financial strength. The company ended Q2 with cash and cash equivalents of NAD 5.91 billion (USD 308 million) and full availability of its NAD 15.34 billion (USD 800 million) revolving credit facility. Strong operational cash flow before working capital adjustments reached NAD 5.77 billion (USD 301 million) for the quarter.
Company-wide, the exploration budget for 2025 stands at a substantial NAD 1.17 billion (USD 61 million), with the Back River Gold District (including the new Goose Mine in Canada) receiving the largest share. However, the significant year-on-year percentage increase allocated specifically to Otjikoto exploration highlights its strategic importance within the portfolio.
Leadership confidence and outlook
B2Gold’s leadership expressed confidence in Otjikoto’s future trajectory. Clive T. Johnson, President and CEO, emphasized the company’s strategy of maximizing production from existing mines while advancing development projects and exploration. The Otjikoto exploration ramp-up, particularly targeting Antelope, is a clear execution of this strategy.
Looking ahead, Otjikoto is forecasted to produce between 165,000 and 185,000 ounces of gold in 2025, weighted towards the first half due to the open-pit closure. Updated cost guidance reflects lower fuel costs and higher gold prices, with cash operating costs now expected between NAD 12,179 and NAD 13,331 (USD 635 and USD 695) per ounce and AISC between NAD 18,509 and NAD 19,661 (USD 965 and USD 1,025) per ounce for 2025.
Conclusion
B2Gold’s decision to dramatically increase exploration spending at its Otjikoto Mine by 57% in Q2 2025, investing NAD 45.7 million, is a powerful vote of confidence in Namibia’s mineral potential. This aggressive investment targets the high-grade Antelope deposit, aiming to transform it from a promising resource into a new production hub that could sustain the Otjikoto operation well into the 2030s. While the existing mine transitions from open-pit to underground operations at Wolfshag, the exploration focus on Antelope represents a crucial investment in Otjikoto’s long-term future and B2Gold’s commitment to Namibia. If successful, this exploration push could secure hundreds of jobs and significant economic benefits for the region for years to come, solidifying Otjikoto’s position as a cornerstone asset within B2Gold’s global portfolio. The company’s strong financial results provide the necessary foundation to fund this ambitious exploration endeavor as it seeks to unlock the next chapter of Otjikoto’s golden story.