Canadian-based mining giant B2Gold has reaffirmed its commitment to Namibia’s mining sector after investing approximately N$33 million (US$1.8 million) in exploration activities at its Otjikoto Gold Mine during the first quarter of 2025, according to the company’s latest financial report. The expenditure marks a slight increase from the US$1.7 million spent in the same period last year, underscoring the mine’s strategic importance as a cornerstone of Namibia’s gold production.
The Otjikoto Mine, in which B2Gold holds a 90% stake, delivered an impressive operational performance during the first quarter, producing 52,578 ounces of gold—surpassing initial forecasts. Key metrics driving this success included a mill feed grade of 1.96 grams per tonne (g/t), mill throughput of 0.84 million tonnes, and an average gold recovery rate of 98.8%. These figures highlight the mine’s efficiency and the effectiveness of ongoing optimization efforts.
Cost efficiency bolsters profitability
B2Gold reported cash operating costs of US$594 per gold ounce produced (US$676 per ounce sold) for Q1 2025, lower than anticipated due to higher-than-expected gold output, a weaker Namibian Dollar exchange rate, and reduced underground mining expenses. The favorable exchange rate, which decreases the relative cost of locally incurred expenses, provided a notable boost to the mine’s financial performance.
Similarly, all-in sustaining costs (AISC)—a comprehensive metric encompassing operational and capital expenditures—stood at US$916 per ounce sold, below projections. This reduction was attributed to higher gold sales and delayed sustaining capital expenditures, though partially offset by increased royalty payments linked to a higher average realized gold price. The company emphasized that deferred capital spending, primarily related to Wolfshag underground development, is expected to resume later in 2025.
2025 Outlook: Transitioning to underground operations
For the full year, B2Gold forecasts Otjikoto’s gold production to range between 165,000 and 185,000 ounces, with cash operating costs projected at US$695–US$755 per ounce and AISC at US$980–US$1,040 per ounce. Production is anticipated to skew toward the first half of the year as open-pit mining concludes in the third quarter. The mine plans to process 3.4 million tonnes of ore at an average grade of 1.63 g/t, sourced from the Otjikoto pit, Wolfshag underground operations, and existing stockpiles.
Underground mining at Wolfshag, which accounted for US$3 million of Q1’s US$4 million capital expenditures, is expected to sustain operations until 2027. However, recent exploration successes at the Antelope deposit—located within the broader Otjikoto license area—have sparked optimism for extending production well beyond this timeline.
Antelope Deposit: A catalyst for long-term growth
In February 2025, B2Gold unveiled a positive Preliminary Economic Assessment (PEA) for the Antelope deposit, revealing its potential to become a small-scale, low-cost underground mine. If developed, Antelope could supplement processing operations from 2028 to 2032 by leveraging low-grade stockpiles, effectively extending Otjikoto’s production lifecycle into the next decade. The PEA outlines an initial five-year mine plan yielding 327,000 ounces of gold, averaging 65,000 ounces annually. Combined with stockpiles, annual output could rise to approximately 110,000 ounces between 2029 and 2032.
To advance this vision, B2Gold has allocated US$10 million in 2025 to de-risk Antelope’s development through permitting, geotechnical studies, and securing long-lead equipment. A final investment decision is expected by Q3 2025, pending further technical assessments and contractor bids.
Resource expansion potential
The Antelope deposit’s current Inferred Mineral Resource estimate stands at 1.75 million tonnes grading 6.91 g/t gold, totaling 390,000 ounces—primarily within the Springbok Zone. Notably, the deposit remains open along strike, signaling strong potential for future resource growth. However, the company cautioned that the PEA is preliminary, relying on Inferred Resources deemed too speculative to classify as Mineral Reserves. As such, economic viability remains uncertain until further feasibility studies are completed.
Economic implications for Namibia
B2Gold’s ongoing investments signal confidence in Namibia’s mining sector, contributing to job creation, infrastructure development, and foreign exchange earnings. The transition from open-pit to underground operations at Otjikoto underscores the mine’s evolving profile, while the Antelope project promises to sustain employment and local procurement opportunities well into the 2030s.
The weaker Namibian Dollar, while a double-edged sword for import-dependent sectors, has proven advantageous for Otjikoto’s cost structure, demonstrating how currency dynamics influence mining profitability. For Namibia, the mine’s success translates into sustained royalty revenues and reinforced positioning as a stable mining jurisdiction.
Looking ahead
As B2Gold navigates Otjikoto’s operational transition, stakeholders will closely monitor progress at Wolfshag and Antelope. The latter’s development could cement Otjikoto’s status as a long-term asset, aligning with global trends toward extending mine lifecycles amid rising demand for gold.
For Namibia, B2Gold’s commitment reflects the broader potential of its mineral resources, offering a blueprint for balancing immediate economic gains with sustainable, long-term growth. As the Antelope project moves closer to reality, its success will hinge on collaborative efforts between the company, government, and local communities to ensure shared prosperity.
In an era of fluctuating commodity prices and geopolitical uncertainties, Otjikoto’s resilience stands as a testament to strategic planning and Namibia’s enduring appeal as a mining destination. With exploration and innovation at its core, B2Gold’s Namibian operations are poised to shine well into the next decade.