For the first three months of 2024, the Otjikoto Mine in Namibia, in which B2Gold holds a 90% interest amassed revenue of nearly N$2 billion (about US$106 million) achieved through 51 450 onces of gold, the gold miners’ financial statements for the first quarter reveal.
Open pit mining operations at the Otjikoto Mine will continue to ramp down in 2024 and conclude in 2025, while processing operations are expected to continue until economically viable stockpiles are exhausted in 2031. Underground operations are currently projected to continue until 2026 with potential to extend underground operations if the ongoing underground exploration program is successful in identifying more underground mineral deposits.
In the first quarter, B2Gold 826 477 tonnes of ore were milled with capital expenditure deployed coming in at N$258 million.
“For 2024, the Otjikoto Mine is expected to process a total of 3.4 million tonnes of ore at an average grade of 1.77 g/t gold with a process gold recovery of 98.0%.
“Processed ore will be sourced from the Otjikoto pit and the Wolfshag underground mine, supplemented by existing medium and high-grade ore stockpiles,” the company announced last week.
Otjikoto produced 45,416 ounces of gold, above expectations as a result of higher than anticipated mill feed grade. For the first quarter of 2024, mill feed grade was 1.74 g/t, mill throughput was 0.83 million tonnes, and gold recovery averaged 98.5%.
“Ore production from the Wolfshag underground mine for the first quarter of 2024 averaged over 1,500 tonnes per day at an average grade of 4.06 g/t gold. As of the beginning of 2024, the Probable Mineral Reserve estimate for the Wolfshag deposit includes 100,000 ounces of gold in 0.6 million tonnes of ore at an average grade of 5.02 g/t gold,” the miner said.
On January 31, 2024, the Company announced positive exploration drilling results from the Antelope deposit at the Otjikoto Mine. The Antelope deposit, comprised of the Springbok Zone, the Oryx Zone, and a possible third structure, Impala, subject to further confirmatory drilling, is located approximately three km south of the Otjikoto open pit. The Antelope deposit has the potential to be developed as an underground mining operation, which could complement the expected processing of low-grade stockpiles at the Otjikoto mill from 2026 through 2031.
Cash operating costs for the first quarter of 2024 were US$642 per gold ounce produced (US$561 per ounce gold sold). Cash operating costs per gold ounce produced for the first quarter of 2024 were lower than expected as a result of higher production and a weaker Namibian dollar. Cash operating costs per gold ounce sold for the first quarter of 2024 were lower than the cash operating costs per ounce produced for the first quarter of 2024 as a result of the sale of lower cost inventory produced in the fourth quarter of 2023.
“All-in sustaining costs for the first quarter of 2024 were US$958 per gold ounce sold. All-in sustaining costs for the first quarter of 2024 were lower than expected as a result of lower than anticipated cash operating costs, higher than anticipated gold ounces sold and lower than expected sustaining capital expenditures, partially offset by higher gold royalties resulting from a higher-than-expected average realized gold price. The lower sustaining capital expenditures were mainly a result of timing of expenditures and are expected to be incurred later in 2024.
“Capital expenditures for the first quarter of 2024 totalled US$14 million, consisting of US$11 million for deferred stripping in the Otjikoto pit and US$3 million for Wolfshag underground mine development.”
The Otjikoto Mine is expected to produce between 180,000 and 200,000 ounces of gold in 2024 at cash operating costs of between US$685 and US$745 per ounce and all-in sustaining costs of between US$960 and US$1,020 per ounce. Gold production at Otjikoto is expected to be relatively consistent throughout 2024.
On May 7, 2024, B2Gold’s Board of Directors declared a cash dividend for the second quarter of 2024 (the “Q2 2024 Dividend”) of US$0.04 per common share (or an expected US$0.16 per share on an annualized basis), payable on June 24, 2024, to shareholders of record as of June 11, 2024. As of March 31, 2024, the expected annual dividend rate represented an approximate 6.1% yield.
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 860,000 and 940,000 ounces in 2024.