Home Southern Africa Namibia: B2Gold’s Otjikoto Mine 2nd Quarter Output Goes Beyond Expectations

Namibia: B2Gold’s Otjikoto Mine 2nd Quarter Output Goes Beyond Expectations

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Namibia: B2Gold’s Otjikoto Mine 2nd Quarter Output Goes Beyond Expectations

(3 Minutes Read)

Financial results indicate that B2Gold’s Otjikoto Mine performed beyond expectations in the second quarter of this year. The mine produced 48 143 ounces of gold for just under approximately N$2,1 billion (USD 112,894 million) in revenue.

Clive Johnson B2Gold’s CEO attributes this to higher than anticipated mill feed grade. B2Gold forecasts total consolidated gold production of between 800,000 and 870,000 ounces in 2024. This contributed significantly to the total gold production of 212 508 ounces in the second quarter of 2024, as production at Fekola Mine in Mali was below expectations during this period, because of damage to an excavator and the delay in receiving replacement equipment, stated Johnson. The Masbate Mine in the Philippines produced 44 515 ounces, while Fekola had 111 583 ounces compared to 152 427 ounces during the same period last year, whereas the Calibre Mining Corp added 8 267 ounces.

The ore production at Otjikoto’s Wolfshag underground mine averaged over 1,500 tonnes per day at an average grade of 4,69 grams per tonne (g/t) gold during the second quarter of 2024. As of the beginning of 2024, the probable mineral reserve estimate for the Wolfshag deposit included 100,000 ounces of gold in 600,000 tonnes of ore at an average grade of 5,02 g/t gold. 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. Johnson added that underground operations are projected to continue until 2026 with the potential to extend underground operations if the ongoing underground exploration programme is successful in identifying more underground mineral deposits.

The Otjikoto Mine’s cash operating costs for the second quarter of 2024 were USD 673 per gold ounce produced (USD 666 per ounce of gold sold). Cash operating costs per gold ounce produced for the second quarter of 2024 were higher than anticipated due to lower-than-expected credits for deferred stripping, resulting from more ore being mined than anticipated and lower capitalised underground development credits for the second quarter of 2024.

All-in-sustaining costs for the second quarter of 2024 were USD 1 044 per gold ounce sold. All-in-sustaining costs for the second quarter of 2024 were slightly higher than expected as a result of higher-than-expected cash operating costs and higher gold royalties. Capital expenditures for the second quarter of 2024 totalled USD 12 million, consisting of USD 9 million for deferred stripping in the Otjikoto pit, USD 2 million for Wolfshag underground mine development, and USD 1 million for mining equipment rebuilds.

Read Also:

https://trendsnafrica.com/canadian-osino-resources-acquires-land-worth-n100m-in-namibia-for-its-twin-hills-gold-project/

https://trendsnafrica.com/b2gold-invests-us33-m-in-namibian-otjikoto-mine/

Otjikoto Mine is now expected to produce between 185 000 and 205 000 ounces of gold in 2024 (original guidance of between 180 000 and 200 000 ounces) at cash operating costs in the upper end of its guidance range of between USD 685 and USD 745 per ounce and all-in sustaining costs of between USD 960 and USD 1 020 per ounce. Production at Otjikoto is expected to be relatively consistent throughout 2024 with the mine 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%.