Gold miner, B2Gold invested approximately N$45 million on exploration at the Otjikoto Gold mine in Namibia for the 9 months ending 30 September 2023, the miner’s financial results for the third quarter reveal.
The exploration effort is despite plans to ramp down open-pit mining in about two years.
Open pit mining operations at the Otjikoto Mine are scheduled to ramp down in 2024 and conclude in 2025, while processing operations will continue until 2031, when economically viable stockpiles are forecast to be exhausted.
Underground operations are currently projected to continue until 2026 with potential to extend underground operations if the on-going underground exploration program is successful in identifying more underground mineral deposits.
At the backdrop of this exploration investment was massive revenue attained for the same period which staggers at approximately N$5.3 billon.
This stellar performance is a jump from the N$3.8 billion revenue achieved in the corresponding period in 2022.
In this, the company realised lucrative gold prices which were on average N$38 000 (US$1920) per ounce.
Notably further, for the same period B2Gold milled 2,554,747 tonnes of ore with recovery rates of over 98%. Subsequently, the miner produced 127,487 ounces of Gold up from the 101 000 ounces produced in the same period of 2022.
On a quarterly basis, the Otjikoto Mine, in which the Company holds a 90% interest, performed well during the third quarter of 2023, producing 44,940 ounces of gold, mainly due to improved processed grade as a result of high-grade ore mined from the Wolfshag underground mine. For the third quarter of 2023, mill feed grade was 1.66 g/t, mill throughput was 0.86 million tonnes, and gold recovery averaged 98.4%.
The Mine is expected to produce between 190,000 and 210,000 ounces of gold in 2023.
Capital expenditures for the third quarter of 2023 totalled N$257 million (about US$13 million), consisting of N$178 million (US$9 million) for deferred stripping in the Otjikoto pit and N$59 milliom (US$3 million) for Wolfshag underground mine development.
For the first nine months of 2023, Otjikoto’s cash operating costs per ounce and all-in sustaining costs per ounce were below expectations due to a weaker Namibian dollar. Otjikoto’s cash operating costs per ounce for 2023 are now expected to be between US$545 and US$605 per ounce (original guidance range of between US$590 and US$650 per ounce) and all-in sustaining costs are now expected to be between US$950 and US$1,010 per ounce (original guidance range of between US$1,080 and US$1,140 per ounce).
Cash operating costs for the third quarter of 2023 were US$785 per gold ounce produced (US$744 per ounce gold sold). Cash operating costs per ounce produced for the third quarter of 2023 were lower than expected as a result of higher production and a weaker Namibian dollar. Lower diesel fuel costs also contributed to the lower than anticipated cash operating costs per ounce produced.
All-in sustaining costs for the third quarter of 2023 were US$1,178 per gold ounce sold. All-in sustaining costs for the third quarter of 2023 were lower than expected as a result of lower than anticipated cash operating costs, higher than anticipated gold ounces sold and lower than anticipated sustaining capital expenditures primarily related to the timing of deferred stripping and underground development.
“Production from the Wolfshag underground mine remained consistent during the third quarter of 2023, averaging over 1,259 tonnes per day at an average grade of 5.55 g/t. Otjikoto pit Phase 5 mine production volumes for the third quarter of 2023 were temporarily reduced due to a minor slope failure that resulted in haulage restrictions caused by a redesign of the main haulage ramp.
“The ramp has been reconstructed with no expected impact on the full-year budgeted 2023 gold production. As of the beginning of 2023, the Probable Mineral Reserve estimate for the Wolfshag deposit includes 203,000 ounces of gold in 1.1 million tonnes of ore at an average grade of 5.55 g/t gold,” said Clive Johnson, President and Chief Executive Officer of B2Gold.
Overall, the miner said total gold production of 242,838 ounces in Q3 2023, expected to increase in Q4 2023. Total gold production in Q3 2023 was 242,838 ounces, including 17,786 ounces of attributable production from Calibre Mining Corp.
“The Masbate and Otjikoto mines exceeded their expected production, which was offset by lower than expected production from the Fekola Mine due to slightly lower grade recovery and lower mill feed grade stemming from ore production delays out of Phase 6 of the Fekola pit following an intense precipitation event. Mining of the higher grade ore in Fekola Phase 6 resumed in October 2023 and fourth quarter of 2023 Fekola Mine production is expected to be significantly higher. All B2Gold operations are on track to meet or exceed annual production guidance ranges,” said Johnson.
B2Gold is a low-cost international senior gold producer headquartered in Vancouver, Canada. Founded in 2007, today, B2Gold has operating gold mines in Mali, Namibia and the Philippines, a mine under construction in northern Canada and numerous development and exploration projects in various countries including Mali, Colombia and Finland. B2Gold forecasts total consolidated gold production of between 1,000,000 and 1,080,000 ounces in 2023.