The B2Gold Otjikoto Mine continued to perform beyond expectations during the third quarter of 2024, producing 52 131 ounces of gold compared to 44 940 produced during the same period last year.
This is contained in the company’s financial results for the third quarter of 2024 released by Clive Johnson, the company’s president and chief executive, on Wednesday.
He said Otjikoto mine’s good performance was a result of higher than anticipated mill feed grade and higher than expected mill throughput.
This contributed to the company’s total gold production in the third quarter of 2024 of 180 553 ounces, which realised US$448.229 million in gold revenue for the quarter, putting the company on track to meet the total 2024 gold production guidance.
“Year-to-date cash operating costs are within annual guidance range and the year-to-date cash operating costs are within the annual guidance range, and the year-to-date all-in sustaining costs are below the revised annual guidance range,” Johnson said.
For the third quarter of 2024, mill feed grade at Otjikoto Mine, in which the Canada-based company holds a 90% interest was 0.87 million tonnes, and gold recovery averaged 98.8%.
“Ore production from the Wolfshag underground mine for the third quarter of 2024 averaged over 1 800 tonnes per day at an average grade of 3.64 g/t gold,” said the chief executive.
The Otjikoto Mine’s cash operating costs for the third quarter of 2024 were US$740 per gold ounce produced (US$742 per ounce gold sold). Cash operating costs per gold ounce produced for the third quarter of 2024 were lower than anticipated due to higher than expected gold production in the third quarter of 2024.
All-in sustaining costs for the third quarter of 2024 were US$896 per gold ounce sold.
All-in sustaining costs for the third quarter of 2024 were lower than expected as a result of lower than expected cash operating costs and higher gold ounces sold, partially offset by higher gold royalties due to a higher than anticipated average realised gold price.
Capital expenditures for the third quarter of 2024 totalled US$1 million for the Wolfshag underground mine development.
The Otjikoto Mine is expected to produce between 185 000 and 205 000 ounces of gold in 2024 at cash operating costs of between US$685 and US$745 per ounce and all-in sustaining costs at or below the lower end of its guidance range of between US$960 and US$1 020 per ounce.
Johnson said following the release of an initial Inferred Mineral Resource Estimate for the Springbok Zone, the southernmost shoot of the recently discovered Antelope deposit, located approximately three kilometres south of the Otjikoto Phase 5 open-pit mine at Otjikoto, in the second quarter of 2024, the company has started a preliminary economic assessment (PEA) which is expected to be completed in the first half of 2025.
Subject to receipt of a positive PEA and permit, mining of the Springbok Zone, coupled with the exploration potential of the greater Antelope deposit, could begin to contribute to gold production at Otjikoto in 2026.
The Antelope deposit has the potential to supplement the processing of low-grade stockpiles at the Otjikoto Mine through 2031, with the goal of increasing gold production levels to over 100 000 ounces per year from 2026 through 2031.
On 6 November, B2Gold’s board of directors declared a cash dividend for the fourth quarter of 2024 of US$0.04 per common share (or upon payment US$0.16 per share on an annualised basis), payable on 12 December, to shareholders as of 2 December.
– email: matthew@namibian.com.na
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