B2Gold Meets 2024 Guidance, Cuts Dividend To Fuel Growth Plans

B2Gold Corp BTG announced its 2024 production of 804,778 gold ounces, aligning with the lower end of its revised guidance. For 2025, the company is targeting a notable increase, forecasting production between 970,000 to 1,06 million ounces.

The Canadian firm expects higher-grade ore from the Fekola Phase 7 and Cardinal Pits and Fekola Underground, accompanied by the start of production at the domestic Goose project, to serve as the growth catalysts with a minor setback of the cease of the Otijkoto open pit.

Despite challenges faced in Mali, including political instability and disruptions in 2024, Fekola produced 392,946 ounces, though it fell short of guidance due to delays in accessing higher-grade ore from Phase 7. Equipment availability improved by year-end, positioning Fekola for a rebound.

While Mali remains an issue for foreign miners, notably Barrick Gold, B2Gold reached an agreement with the government in September, ensuring largely uninterrupted operations.

The Goose Project in Nunavut remains on schedule for its first gold pour in the second quarter of 2025. Key milestones, such as the completion of the 2024 sea lift and progress on a 163 km winter ice road, support timely material transportation to the site. The project aims to produce 120,000 to 150,000 ounces in 2025, with an average annual output of 310,000 ounces from 2026 to 2031.

At the Otjikoto Mine in Namibia, operations exceeded expectations in 2024, producing 198,142 ounces. However, open-pit mining is set to conclude by the third quarter of 2025, with exploration efforts, including the Antelope deposit feasibility study, targeting to extend its life. Similarly, the Gramalote project in Colombia is progressing toward a feasibility study, expected in mid-2025, after positive economic assessments highlighted strong production potential.

To support its growth strategy, B2Gold has allocated $61 million for exploration in 2025, focusing on projects like Back River and other key assets. Still, growth and exploration come with a price tag. Due to these plans, B2Gold reduced its quarterly dividend by 50% to CA 2 cents per share.

"As we enter an organic production growth phase, starting shortly with the anticipated commencement of gold production from both Fekola Regional and the Goose Mine, it is important to maintain our strong financial position as well as flexibility for internal growth projects moving forward," CEO Clive Johnson said, noting the new yield of 3.3% remains competitive in the current environment.

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This image was created using artificial intelligence MidJourney.