Get the Latest Investment Ideas Delivered Straight to Your Inbox.

News Update

TICKERS: BTG; BTO; B2G

Joint Venture Releases Positive PEA for Colombia Project
News Update

Source:

Infill drilling continues to further optimize the economics outlined in the study.

B2Gold Corp. (BTG:NYSE; BTO:TSX; B2G:NSX) announced in a news release the results of the preliminary economic assessment (PEA) on Gramalote in Colombia after becoming the manager, on Jan. 1, 2020, of the joint venture gold project with AngloGold Ashanti.

Using a $1,350 per ounce ($1,350/oz) gold price, the PEA outlines an open-pit gold mining operation for Gramalote, which would produce about 3.85 million ounces over its initial mine life of 13.6 years and would process roughly 11.0 million tons per year. Average annual gold production would be an estimated 416,600 ounces for the first five years.

Over the life of the mine, cash flow from Gramalote would be an estimated $1,827 million pretax and $1,283 million after tax. Assuming a 5% discount rate, the pretax net present value (NPV) is projected to be about $1,027 million. The PEA projects an after-tax NPV of $671 million, yielding an after-tax internal rate of return of 18.1% and resulting in payback in about 3.6 years.

As for costs, the pre-production capital costs for Gramalote are estimated at $901 million, which includes roughly $160 million for mining equipment. Average life-of-mine, all-in sustaining costs are projected to be $648/oz of gold. Average life-of-mine, all-in costs, including the pre-production ones, are forecast at $882/oz gold.

Currently, B2Gold is continuing to infill drill at Gramalote Ridge to convert existing Inferred mineral resources into Indicated resources. Geotechnical drilling for site infrastructure also is in progress. The project manager expects to finish by year-end 2020 all of the feasibility work needed to optimize the PEA and to release the feasibility study. A construction decision is to follow in early January 2021, the company stated.

[NLINSERT]

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.




Learn More about Which Online Broker is Right for You?

Want to read more about Gold investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe