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VANCOUVER - B2Gold Corp (TSX:BTO). (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G), a mining company with a market capitalization of $3.2 billion and strong balance sheet fundamentals including a healthy current ratio of 1.83, has released a preliminary economic assessment (PEA) for the Antelope deposit at its Otjikoto mine in Namibia, indicating the potential for a new underground gold mine. The Antelope deposit, which includes the Springbok and Oryx zones, is situated about 4 kilometers from the existing open pit. According to InvestingPro analysis, the company maintains a conservative financial position with a low debt-to-equity ratio of 0.08.
The PEA, effective January 15, 2025, outlines an initial five-year life of mine with an average processed grade of 5.75 grams per tonne gold, leading to an estimated production of 327,000 ounces at a 95% recovery rate. Average annual gold production is anticipated to be around 65,000 ounces, contributing to a projected overall production of approximately 110,000 ounces per year for Otjikoto from 2029 to 2032 when combined with existing low-grade stockpile processing.
The projected all-in sustaining costs are approximately $1,095 per ounce, and the project boasts strong economics with an after-tax free cash flow of $185 million, assuming a $2,400 per ounce gold price. The PEA estimates a net present value (NPV) of $131 million after-tax, with an internal rate of return (IRR) of 35% and a payback period of 1.3 years on pre-production capital estimated at $129 million. InvestingPro data shows the company generated $188.12 million in EBITDA over the last twelve months, demonstrating its operational capability. Want deeper insights? InvestingPro offers 5 additional key tips about B2Gold (NYSE:BTG)’s financial health and growth prospects.
B2Gold plans to leverage its experience from the adjacent Wolfshag underground mine to manage the Antelope underground mine’s development and operation. The existing infrastructure, including camp, workshops, offices, and power, is already operational, which is expected to reduce costs and execution risks.
The company has budgeted $7 million for exploration at Otjikoto in 2025, with a focus on expanding and refining the Antelope deposit. This includes 44,000 meters of drilling, with 2,500 meters of selective infill drilling to assess the continuity of high-grade mineralization in the Springbok Zone.
The Antelope deposit remains open along strike in both directions, suggesting potential for future resource expansion. The PEA is based on Inferred Mineral Resources, which are too speculative geologically to have economic considerations applied that would enable categorization as Mineral Reserves, and there is no certainty that the PEA will be realized.
B2Gold’s forward-looking statements include total consolidated gold production of between 970,000 and 1,075,000 ounces in 2025. While these statements involve risks and uncertainties, including the need for permits, geotechnical, hydrogeological, and metallurgical assumptions, and the confirmation of high-grade continuity, the company maintains a significant dividend yield of 6.65% and analysts expect net income growth this year, according to InvestingPro data.
The information reported is based on a press release statement from B2Gold Corp .
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