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B2Gold pumps N$647m into Otjikoto Mine

August 09, 2022

Canadian gold miner B2Gold says it pumped N$647 million (US$39 million) into the Otjikoto Mine as part of its capital expenditure (CAPEX) for the first half of 2022, including N$315.6 million (US$19 million) into the Wolfshag underground mine development. 

The B2Gold board approved the underground mining project in December 2019 and is estimated to contain 210 000 ounces of gold in 1.2 million tonnes of ore, which will be extracted over four years and expected to realise N$5.9 billion (US$ 403.2 million) in revenue. 

According to the listed miner, N$182.4 million (US$11 million) was spent on pre-stripping in the Otjikoto pit, with N$83 million (US$5 million) spent on mobile equipment purchases and rebuilds while N$66.3 million (US$4 million) was used on the national power grid connection line during the period. 

The Namibian mine produced 66 478 ounces of gold, in line with the budget and 33% (16 545 ounces) higher than the first half of 2021, according to the miner’s latest production figures. 

Higher fuel costs in the first half of 2022 drove up Otjikoto's cash operating costs to US$943 per ounce produced (US$763 per gold ounce sold), below budget by US$40 per ounce produced (4%) and higher by US$50 per ounce produced (6%) compared to the first half of 2021. 

“After factoring in current fuel price increases at Otjikoto, Otjikoto's cash operating costs for the second half of 2022 are now expected to be between US$640 to US$680 per ounce (original second half guidance range was between US$620 to US$660 per ounce).” 

Otjikoto's cash operating costs per ounce sold for the first half of 2022 were significantly below budget by US$220 per ounce sold (22%), mainly due to the sale of lower-cost inventory produced in 2021. 

“Overall and after factoring in the positive operating results in the first half of 2022, Otjikoto's costs guidance ranges for full-year 2022 remain unchanged. For full-year 2022, Otjikoto's cash operating costs are expected to be at the upper end of its annual guidance range of between US$740 and US$780 per ounce and Otjikoto's AISC are expected to be within its guidance range of between US$1 120 and US$1 160 per ounce.” 

B2Gold Namibia is a 90% owned subsidiary of B2Gold Corp, with the remaining 10% owned by EVI Mining Company Limited, a Namibian, broad-based economic empowerment group.

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Last modified on Thursday, 11 August 2022 06:27