B2Gold Corporation’s Otjikoto mine in Namibia, performed exceptionally well during the third quarter of 2023, producing 44 940 ounces of gold for total revenue of US$268,187 million (N$5,36 billion), mainly due to improved processed grade as a result of high-grade ore from the Wolfshag underground mine.
This is contained the the company’s operational and financial results for the third quarter of 2023 issued by the company’s chief executive and president Clive Johnson, in which he said the company produced 242 838 ounces and all operations are on track to meet or exceed annual production guidance ranges.
Otjikoto Mine, in which B2Gold holds 90% stake, is expected to produce between 190 000 and 210 000 ounces of gold in 2023. B2Gold also has operating gold mines in Mali and the Philippines, as well as a mine under construction in northern Canada
Johnson said for the third quarter of 2023, mill feed grade at Otjikoto was 1,66 grams per tonne (g/t), mill
throughput was 0,86 million tonnes, and gold recovery averaged 98,4%.
“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,” said Johnson.
He said 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.
“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 ongoing underground exploration programme is successful in identifying more underground mineral deposits,” he said.
According to the statement, cash operating costs for the third quarter of 2023 were US$785 (N$15 600) per gold ounce produced and US$744 (N$14 880) 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 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 (N$23 560) 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,” said Johnson.
Capital expenditures for the third quarter of 2023 totalled US$13 million (N$260 million), consisting of US$9 million (N$180 million) for deferred stripping in the Otjikoto pit and US$3 million (N$60 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 Namibia dollar.
The mine’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.
According to Johnson, B2Gold continues to maintain a strong financial position and liquidity.
At 30 September 2023, the company had cash and cash equivalents of US$310 million and working capital of US$383 million and the full amount of the company’s US$700 million revolving credit facility (RCF) was undrawn and available.
The company’s board declared a cash dividend for the third quarter of 2023 of 4 US cents per common share (16 US cents per share on an annualised basis), paid on 29 September 2023.
Based on a strong operational and financial results for the first nine months of 2023, B2Gold is on track to meet its annual total gold production forecast of between 1 000 000 and 1 080 000 ounces. – email: matthew@namibian.com.na
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