Solid first quarter for Otjikoto

Jo-Maré Duddy – B2Gold Corp.’s Otjikoto Mine in Namibia produced 39 499 ounces of gold in the first three months of 2018, 2 174 ounces or 6% above budget.Releasing its latest production results, the Canadian-based B2Gold and the world’s new senior gold producer, said Otjikoto had a “solid start to the year” following a record year of gold production in 2017.Based on first quarter results, Otjikoto delivered the third biggest production of B2Gold’s five mines, contributing nearly 16.5% to the group total production of 239 684 ounces for the three months under review. At 114 142 ounces, the Fekola Mine in Mali was the biggest and lowest-cost producer, followed by Masbate in the Philippines with 53 147 ounces. La Libertad and El Limon in Nicaragua delivered 19 367 and 13 529 ounces respectively.PerformanceCompared to the first quarter of 2017, Otjikoto’s production dropped by 3 275 ounces or 8%. B2Gold said this was expected, “due to a negligible amount of Wolfshag ore being mined in 2018 while Phase 2 of the Wolfshag Pit is being developed”. Ore production is planned to resume again from the Wolfshag Pit in 2019, which is projected to provide higher grade open-pit mill feed, according to B2Gold.Mill throughput, recoveries and processed grade were all slightly above budget in the past quarter, “as the mine continues to incrementally optimise its operations”. B2Gold said the Otjikoto mill continued to perform well, processing 827 227 tonnes, 5 578 tonnes or 0.7% less than the first quarter last year. Gold recoveries averaged 98.7% during the quarter under review, compared to 98.6% during the same quarter in 2017.Otjikoto is expected to produce between 160 000 and 170 000 ounces of gold in 2018, primarily from the Otjikoto Pit. Cash operating costs are estimated to be between US$480 and US$525 per ounce, while all-in sustaining costs (AISC) of between US$700 and US$750 per ounce are projected.B2Gold said geotechnical, hydrogeological and design studies for Wolfshag have been completed. These were based on an updated resource model, resulting in a larger open pit than previously reported.B2Gold’s total exploration budget for Namibia this year is US$5.1 million. “Exploration in 2018 will include 17 000 metres of diamond drilling and 4 000 metres of RAB [rotary air blast] drilling, split between the Otjikoto project and the Ondundu joint venture,” the company said.Outlook“B2Gold is well on target to achieve transformational growth in 2018 and meet its annual guidance of between 910 000 and 950 000 ounces of gold production in 2018 at cash operating costs of between US$505 and US$550 per ounce and AISC of between US$780 and US$830 per ounce,” the company said.The company said it “will remain focused on continuing its impressive operational and financial performance from existing mines, pursuing expansion opportunities at existing operations and continuing with aggressive exploration and development programmes to unlock the potential of its existing portfolio of properties”.B2Gold reported consolidated gold revenue of US$344.3 million in the past quarter – a quarterly record on record sales of 259 837 ounces at an average price of US$1 325 per ounce. In the first quarter of 2017, the company’s consolidated revenue was US$146.3 million on sales of 119 937 ounces at an average price of US$1 219 per ounce.B2Gold, which is also listed on the Toronto Stock Exchange (TSX) and the NYSE American, closed at N$34.45 per share on the Overall Index of the Namibian Stock Exchange (NSX) on Friday.

Solid first quarter for Otjikoto

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Republikein 2025-11-05

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Solid first quarter for Otjikoto

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