B2Gold Reports Q2 2025 Results Continued Strong Operating Performance Across All Three Operations Led to Higher Than Expected Gold Production and Lower than Expected Cash Costs in the Second Quarter of 2025
News Release B2Gold Reports Q2 2025 Results
Continued Strong Operating Performance Across All Three Operations Led to Higher Than Expected Gold Production and Lower than Expected Cash Costs in the Second Quarter of 2025
Vancouver, BC, August 7, 2025 – B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G) (“B2Gold” or the “Company”) is pleased to announce its operational and financial results for the second quarter of 2025. All dollar figures are in United States dollars unless otherwise indicated.
2025 Second Quarter Highlights
- Gold production of 229,454 ounces: Consolidated gold production in the second quarter of 2025, including pre-commercial production from the Goose Mine, was 229,454 ounces, higher than expected. The Fekola, Masbate and Otjikoto mines all exceeded expected production in the second quarter, and the Company remains on track to meet its consolidated annual production guidance range. All three operations continue to meet or exceed gold production expectations to start the third quarter of 2025.
- Consolidated cash operating costs of $745 per gold ounce produced: Consolidated cash operating costs (see “Non-IFRS Measures”), excluding pre-commercial production from the Goose Mine, were $745 per gold ounce produced ($762 per gold ounce sold) during the second quarter of 2025. Cash operating costs per ounce produced for the second quarter of 2025 were better than expected as a result of lower than expected fuel costs and higher than expected gold production.
- Consolidated all-in sustaining costs of $1,519 per gold ounce sold: Consolidated all-in sustaining costs (see “Non-IFRS Measures”) were $1,519 per gold ounce sold during the second quarter of 2025. Consolidated all-in sustaining costs for the second quarter of 2025 were higher than expected as lower production costs per gold ounce sold and lower sustaining capital expenditures were offset by higher gold royalties resulting from a higher than expected average realized gold price and lower than expected ounces sold. The lower sales ounces were a result of the timing of shipments from the Company's Masbate and Fekola Mines, which were delivered and sold in July 2025.
- Attributable net income of $0.12 per share; adjusted attributable net income of $0.12 per share: Net income attributable to the shareholders of the Company of $154 million, or $0.12 per
share; adjusted net income (see “Non-IFRS Measures”) attributable to the shareholders of the Company of $163 million, or $0.12 per share.
- Operating cash flow before working capital adjustments of $301 million: Cash flow provided by operating activities before working capital and long-term value-added tax adjustments was $301 million in the second quarter of 2025.
- Strong financial position and liquidity: At June 30, 2025, the Company had cash and cash equivalents of $308 million and working capital deficit (defined as current assets less assets classified as held for sale and current liabilities) of $19 million. Working capital at June 30, 2025 reflects the classification of the Company’s gold prepayment obligations as current liabilities. As of June 30, 2025, the full amount of the Company's $800 million revolving credit facility (“RCF”) was available for future draw downs.
| • Inaugural gold pour achieved at the Goose Mine; ramp up to commercial production ongoing | |
| and expected to be achieved in the third quarter of 2025; estimated gold production of 120,000 | |
| to 150,000 ounces in 2025: With first gold achieved, as announced on June 30, 2025, focus now | |
| turns to continuing steady state operations and increasing throughput to full design capacity. The | |
| Company continues to estimate that gold production in calendar year 2025 will be between 120,000 | |
| and 150,000 ounces and that average annual gold production for the six year period from 2026 to | |
| 2031 inclusive will be approximately 300,000 ounces per year, based only on existing Mineral | |
| Reserves. |
| • Positive Feasibility Study on the Gramalote Project in Colombia announced; after-tax NPV | |
| (5%) of $941 Million with an after-tax IRR of 22.4% at a $2,500 per ounce gold price: On July | |
| 14, 2025, B2Gold announced positive Feasibility Study (“FS”) results on the Company’s 100% | |
| owned Gramalote Project. The FS for the Gramalote project indicates an initial life of project of 13 | |
| years, with average annual production of 227,000 ounces over the first five years. Based on the | |
| project economics, B2Gold has commenced the work of amending the existing mine plan and | |
| environmental permits which are currently in place for a larger-scale project. B2Gold currently | |
| anticipates the permit modification to the new medium-scale project reflected in the current FS | |
| could be completed over the next 12 to 18 months. |
| • Received approval to commence underground mining at Fekola: On July 30, 2025, the State of | |
| Mali granted approval for the Company to commence underground mining at the Fekola Mine. | |
| Subsequent to receipt of the approval, the Company commenced stope ore development and | |
| production at the Fekola underground, and Fekola underground ore that was stockpiled during the | |
| underground exploration development stage is currently being processed through the Fekola mill. |
| • Fekola Mine reaches production milestone of four million ounces of gold produced: | |
| Subsequent to June 30, 2025, the Fekola Mine achieved lifetime production of four million ounces | |
| of gold, seven years and ten months from construction completion. |
- New Board of Director appointment: On August 6, 2025, Mary-Lynn Oke, CPA, was appointed to B2Gold's Board of Directors (the “Board”). Ms. Oke brings extensive corporate finance experience, and currently serves on the Boards of Directors of NexGold Mining Corp. and Jaguar Mining Inc.
- Q3 2025 dividend of $0.02 per share declared: On August 7, 2025, B2Gold's Board of Directors declared a cash dividend for the third quarter of 2025 of $0.02 per common share (or an expected $0.08 per share on an annualized basis), payable on September 23, 2025, to shareholders of record as of September 10, 2025.
Second Quarter 2025 Results Three months ended Six months ended June 30, June 30, 2025 2024 2025 2024
| Gold revenue ($ in thousands) | 692,206 | 492,569 | 1,224,313 | 954,013 |
| Net income (loss) ($ in thousands) | 160,753 | (34,777) | 223,317 | 13,704 |
| Earnings (loss) per share – basic(1) ($/ share) | 0.12 | (0.02) | 0.16 | 0.01 |
| Earnings (loss) per share – diluted(1) ($/ share) | 0.10 | (0.02) | 0.14 | 0.01 |
| Cash provided by operating activities ($ thousands) | 255,081 | 62,432 | 433,869 | 773,159 |
| Average realized gold price ($/ ounce) | 3,290 | 2,343 | 3,104 | 2,202 |
| Adjusted net income(1)(2) ($ in thousands) | 162,839 | 78,449 | 284,689 | 159,952 |
| Adjusted earnings per share(1)(2) – basic ($) | 0.12 | 0.06 | 0.22 | 0.12 |
| Consolidated operations results: | ||||
| Gold sold (ounces) | 210,384 | 210,228 | 394,382 | 433,206 |
| Gold produced including pre-commercial production from the | ||||
| 229,454 | 204,241 | 422,206 | 418,580 | |
| Goose Mine (ounces) | ||||
| Gold produced excluding pre-commercial production from the | ||||
| 228,762 | 204,241 | 421,514 | 418,580 | |
| Goose Mine (ounces) | ||||
| Production costs ($ in thousands) | 160,363 | 151,299 | 322,357 | 308,044 |
| Cash operating costs(2)(4) ($/ gold ounce sold) | 762 | 720 | 817 | 711 |
| Cash operating costs(2)(4) ($/ gold ounce produced) | 745 | 808 | 785 | 762 |
| Total cash costs(2)(4) ($/ gold ounce sold) | 1,132 | 877 | 1,123 | 857 |
| All-in sustaining costs(2)(4) ($/ gold ounce sold) | 1,519 | 1,244 | 1,525 | 1,296 |
| Operations results including equity investment in Calibre(3): | ||||
| Gold sold (ounces) | 210,384 | 218,495 | 394,382 | 452,850 |
| Gold produced including pre-commercial production from the | ||||
| 229,454 | 212,508 | 422,206 | 438,224 | |
| Goose Mine (ounces) | ||||
| Production costs ($ in thousands) | 160,363 | 164,520 | 322,357 | 333,170 |
| Cash operating costs(2)(4) ($/ gold ounce sold) | 762 | 753 | 817 | 736 |
| Cash operating costs(2)(4) ($/ gold ounce produced) | 745 | 839 | 785 | 785 |
| Total cash costs(2)(4) ($/ gold ounce sold) | 1,132 | 908 | 1,123 | 879 |
| All-in sustaining costs(2)(4) ($/ gold ounce sold) | 1,519 | 1,267 | 1,525 | 1,308 |
(1) Attributable to the shareholders of the Company.
(2) Non-IFRS measure. For a description of how these measures are calculated and a reconciliation of these measures to the most directly comparable measures
specified, defined or determined under IFRS and presented in the Company’s financial statements, refer to “Non-IFRS Measures”.
(3) Production from Calibre Mining Corp.'s ("Calibre") La Libertad, El Limon and Pan mines is presented on an approximate 24% basis until January 24, 2024 and
14% subsequently until June 20, 2024 which represented the Company’s indirect ownership interest in Calibre's operations through its equity investment in Calibre. On
June 20, 2024, the Company reduced its ownership interest to approximately 4% and determined that it no longer had significant influence over Calibre and as a result,
after June 20, 2024, no longer recorded attributable production representing its indirect ownership interest in Calibre's mines through an equity investment.
(4) Cash operating costs per gold ounce produced do not include the results of pre-commercial production from the Goose Mine. Pre-commercial production from the
Goose Mine in the second quarter of 2025 was not sold during the period. As a result, there is no impact to metrics on a per gold ounce sold basis.
Liquidity and Capital Resources
B2Gold continues to maintain a strong financial position and liquidity. At June 30, 2025, the Company had cash and cash equivalents of $308 million (December 31, 2024 - $337 million) and working capital deficit (defined as current assets less assets classified as held for sale and current liabilities) of $19 million (December 31, 2024 – surplus of $321 million). Working capital at June 30, 2025, reflects the classification of the Company’s gold prepayment obligations as current liabilities. During the first half of 2025 the Company repaid $400 million on the Company's $800 million revolving credit facility, leaving $800 million remaining available for future draw downs, plus a $200 million accordion feature. Subsequent to June 30, 2025, on July 18, 2025, the Company drew down $200 million under the RCF which will be used to manage working capital requirements during the Company's delivery of ounces into its gold prepayment obligations over the 12-month period from July 2025 to June 2026.
Third Quarter 2025 Dividend
On August 7, 2025, the Board declared a cash dividend for the third quarter of 2025 (the “Q3 2025 Dividend”) of $0.02 per common share (or an expected $0.08 per share on an annualized basis), payable on September 23, 2025 to shareholders of record as of September 10, 2025.
The Company currently has a Dividend Reinvestment Plan (“DRIP”). For the purposes of the Q3 2025 Dividend, the Company has determined that no discount will be applied to calculate the Average Market Price (as defined in the DRIP) of its common shares issued from treasury. Beneficial shareholders who wish to participate in the DRIP should contact their financial advisor, broker, investment dealer, bank, financial institution, or other intermediary through which they hold common shares for instructions on how to enroll in the DRIP.
This dividend is designated as an "eligible dividend" for the purposes of the Income Tax Act (Canada). Dividends paid by B2Gold to shareholders outside Canada (non-resident investors) will be subject to Canadian non-resident withholding taxes.
The declaration and payment of future dividends and the amount of any such dividends will be subject to the determination of the Board, in its sole and absolute discretion, taking into account, among other things, economic conditions, business performance, financial condition, growth plans, expected capital requirements, compliance with B2Gold's constating documents, all applicable laws, including the rules and policies of any applicable stock exchange, as well as any contractual restrictions on such dividends, including any agreements entered into with lenders to the Company, and any other factors that the Board deems appropriate at the relevant time. There can be no assurance that any dividends will be paid at the intended rate or at all in the future.
For more information regarding the DRIP and enrollment in the DRIP, please refer to the Company's website at https://www.b2gold.com/investors/stock_info/.
This news release does not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction nor will there be any sale of these securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such province, state or jurisdiction.
The Company has filed a registration statement relating to the DRIP with the U.S. Securities and Exchange Commission that may be obtained under the Company's profile on the U.S. Securities and Exchange Commission's website at http://www.sec.gov/EDGAR or by contacting the Company using the contact information at the end of this news release.
Operations
Fekola Complex – Mali
Three months ended Six months ended June 30, June 30, 2025 2024 2025 2024
| Gold revenue ($ in thousands) | 377,316 | 270,592 | 631,983 | 526,910 |
| Gold sold (ounces) | 115,184 | 115,288 | 202,992 | 239,116 |
| Average realized gold price ($/ ounce) | 3,276 | 2,347 | 3,113 | 2,204 |
| Tonnes of ore milled | 2,341,718 | 2,520,377 | 4,788,389 | 4,983,240 |
| Grade (grams/ tonne) | 1.84 | 1.51 | 1.57 | 1.57 |
| Recovery (%) | 91.2 | 92.8 | 91.1 | 92.7 |
| Gold production (ounces) | 126,361 | 111,583 | 220,166 | 230,724 |
| Production costs ($ in thousands) | 96,121 | 81,481 | 185,146 | 166,586 |
| Cash operating costs(1) ($/ gold ounce sold) | 834 | 707 | 912 | 697 |
| Cash operating costs(1) ($/ gold ounce produced) | 798 | 839 | 870 | 766 |
| Total cash costs(1) ($/ gold ounce sold) | 1,369 | 895 | 1,361 | 873 |
| All-in sustaining costs(1) ($/ gold ounce sold) | 1,721 | 1,258 | 1,815 | 1,351 |
| Capital expenditures ($ in thousands) | 53,379 | 53,179 | 117,382 | 133,741 |
| Exploration ($ in thousands) | — | 838 | — | 2,140 |
(1) Non-IFRS measure. For a description of how these measures are calculated and a reconciliation of these measures to the most directly comparable measures
specified, defined or determined under IFRS and presented in the Company’s financial statements, refer to “Non-IFRS Measures”.
The Fekola Mine in Mali (owned 80% by the Company and 20% by the State of Mali) produced 126,361 ounces of gold in the second quarter of 2025, above expectations. For the second quarter of 2025, mill feed grade was 1.84 grams per tonne ("g/t") gold, mill throughput was 2.34 million tonnes, and gold recovery averaged 91.2%.
The Fekola Mine’s cash operating costs (refer to “Non-IFRS Measures”) for the second quarter of 2025 were $798 per ounce produced ($834 per gold ounce sold). Cash operating costs per ounce produced for the second quarter of 2025 were lower than expected as a result of lower fuel costs, lower fleet maintenance costs and higher gold production due to above expected mill feed grades.
All-in sustaining costs (refer to “Non-IFRS Measures”) for the second quarter of 2025 were $1,721 per gold ounce sold, higher than expected. All-in sustaining costs for the second quarter of 2025 were higher than anticipated as lower than expected production costs per gold ounce sold and lower than expected sustaining capital expenditures were offset by higher gold royalties resulting from a higher than expected average realized gold price and lower than expected gold ounces sold. Gold royalties include higher revenue-based production taxes based on a sliding scale and revenue-based State of Mali funds applicable for the Fekola Mine, which became effective for the first time in March 2025. The lower sustaining capital expenditures for the second quarter of 2025 were mainly a result of timing of expenditures and are expected to be incurred later in 2025. Lower than expected gold sales were a result of timing and these ounces were shipped and sold in July 2025.
Capital expenditures in the second quarter of 2025 totalled $53 million primarily consisting of $22 million for deferred stripping, $17 million for Fekola underground development, $10 million for mobile equipment purchases and rebuilds and $4 million for the construction of a new tailings storage facility.
The Fekola Complex is comprised of the Fekola Mine (Medinandi permit hosting the Fekola and Cardinal open pits and Fekola underground), owned 80% by B2Gold and 20% by the State of Mali, and Fekola Regional (Anaconda Area (formerly the three separate Bantako, Menankoto and Bakolobi permits, now consolidated into one permit called Menankoto) and the Dandoko permit), which will be owned 65% by B2Gold and 35% by the State of Mali. Fekola Regional is located approximately 20 kilometers from the Fekola Mine.
On July 30, 2025, the State of Mali granted approval for the Company to commence underground operations, including stope ore production, at the Fekola Mine ("Underground Mining Approval"). Throughout 2024 and 2025, the Company has been carrying out underground exploration development work at the Fekola Mine in anticipation of the receipt of Underground Mining Approval. This includes more than 9,300 meters of development work plus the installation of all required underground mining infrastructure. Subsequent to receipt of the Underground Mining Approval, the Company commenced stope ore production at Fekola underground, and Fekola underground ore that was stockpiled during the underground exploration development stage is currently being processed through the Fekola mill. In 2025, the Company anticipates Fekola underground to contribute between 25,000 to 35,000 ounces of gold production, ramping up significantly in 2026 and subsequent years.
The development of Fekola Regional has the potential to enhance the Fekola Complex production profile and extend the mine life. Fekola Regional is anticipated to contribute approximately 180,000 ounces of additional annual gold production in its first four full years of production from 2026 through 2029, with a mine life expected to extend well into the 2030’s. The Company and the State of Mali have committed to work together to finalize the approval of the Fekola Regional exploitation permit in the near term, with permit approval expected prior to the end of the third quarter of 2025. Importantly, the haul road from Fekola Regional to the Fekola Mine is operational as construction of the haul roads and mining infrastructure (warehouse, workshop, fuel depot and offices) was completed on schedule in 2023. Upon issuance of the exploitation permits for Fekola Regional, mining pre-stripping activities will begin for a period of three months, followed by initial gold production now expected to commence in late 2025.
Despite the delay in expected commencement of mining at Fekola Regional, the Company still expects to meet its production guidance of between 515,000 and 550,000 ounces from the Fekola Complex in 2025. The Fekola Complex is projected to process 9.56 million tonnes of ore during 2025 at an average grade of 1.84 g/t gold with a process gold recovery of 93.4%. Gold production is expected to be weighted approximately 40% to the first half of 2025 and 60% to the second half of 2025.
The Company has updated its cash cost and all-in sustaining cost guidance ranges for the Fekola Complex to reflect the expected impact of lower than estimated fuel costs in 2025, and an increase in realized and expected gold prices for 2025 compared to a budgeted gold price of $2,250 per ounce, along with expected changes in the timing of receipt of the exploitation permit for Fekola Regional. Cash operating cost guidance for the Fekola Complex is now forecast to be between $740 and $800 per gold ounce (original guidance range of between $845 and $905 per ounce) and all-in sustaining cost guidance for the Fekola Complex is now forecast to be between $1,595 and $1,655 per ounce (original guidance range of between $1,550 and $1,610 per gold ounce).
Masbate Mine – The Philippines
Three months ended Six months ended June 30, June 30, 2025 2024 2025 2024
| Gold revenue ($ in thousands) | 132,698 | 109,083 | 262,091 | 208,050 |
| Gold sold (ounces) | 39,900 | 46,600 | 84,350 | 94,300 |
| Average realized gold price ($/ ounce) | 3,326 | 2,341 | 3,107 | 2,206 |
| Tonnes of ore milled | 2,191,599 | 2,043,057 | 4,469,631 | 4,212,519 |
| Grade (grams/ tonne) | 0.93 | 0.94 | 0.88 | 0.96 |
| Recovery (%) | 77.8 | 72.4 | 77.1 | 72.4 |
| Gold production (ounces) | 50,738 | 44,515 | 97,107 | 94,297 |
| Production costs ($ in thousands) | 34,468 | 37,602 | 72,484 | 80,373 |
| Cash operating costs(1) ($/ gold ounce sold) | 864 | 807 | 859 | 852 |
| Cash operating costs(1) ($/ gold ounce produced) | 801 | 876 | 816 | 854 |
| Total cash costs(1) ($/ gold ounce sold) | 1,086 | 955 | 1,052 | 983 |
| All-in sustaining costs(1) ($/ gold ounce sold) | 1,497 | 1,135 | 1,344 | 1,177 |
| Capital expenditures ($ in thousands) | 17,499 | 6,507 | 25,232 | 15,037 |
| Exploration ($ in thousands) | 531 | 928 | 951 | 1,749 |
(1) Non-IFRS measure. For a description of how these measures are calculated and a reconciliation of these measures to the most directly comparable measures
specified, defined or determined under IFRS and presented in the Company’s financial statements, refer to “Non-IFRS Measures”.
The Masbate Mine in the Philippines continued its strong performance with second quarter of 2025 gold production of 50,738, above expectations. For the second quarter of 2025, mill feed grade was 0.93 g/t gold, mill throughput was 2.19 million tonnes, and gold recovery averaged 77.8%.
The Masbate Mine's cash operating costs (see “Non-IFRS Measures”) for the second quarter of 2025 were $801 per ounce produced ($864 per gold ounce sold). Cash operating costs per ounce produced for the second quarter of 2025 were lower than expected as a result of higher than expected gold production as well as lower operating costs primarily due to lower diesel and heavy fuel oil cost.
All-in sustaining costs (refer to “Non-IFRS Measures”) for the second quarter of 2025 were $1,497 per gold ounce sold. All-in sustaining costs for the second quarter of 2025 were higher than expected as lower than expected production costs per gold ounce sold were offset by lower than expected gold ounces sold and higher gold royalties resulting from a higher than expected average realized gold price. Lower than expected gold ounces sold during the second quarter of 2025 was due to the timing of shipments, which were delivered and sold in July 2025.
Capital expenditures in the second quarter of 2025 totalled $17 million, primarily consisting of $6 million for deferred stripping, $4 million for a solar plant, $2 million for mobile equipment purchases and rebuilds and $3 million for land acquisitions.
The Masbate Mine in the Philippines is expected to produce between 170,000 and 190,000 ounces of gold in 2025. Gold production at Masbate is expected to be relatively consistent throughout 2025. Masbate is projected to process 8.0 million tonnes of ore at an average grade of 0.88 g/t gold with a process gold recovery of 79.9%. Mill feed will be a blend of mined fresh ore from the Main Vein pit and low-grade ore stockpiles.
The Company has updated its cash cost and all-in sustaining cost guidance ranges for the Masbate Mine to reflect the expected impact of lower than anticipated fuel costs in 2025 and an increase in realized and expected gold prices for 2025 compared to a budgeted gold price of $2,250 per ounce. Cash operating cost guidance for the Masbate Mine is now forecast to be between $850 and $910 per gold ounce (original guidance range of between $955 and $1,015 per ounce) and all-in sustaining cost guidance for the Masbate Mine is now forecast to be between $1,245 and $1,305 per ounce (original guidance range of between $1,310 and $1,370 per gold ounce).
Otjikoto Mine – Namibia
Three months ended Six months ended June 30, June 30, 2025 2024 2025 2024
| Gold revenue ($ in thousands) | 182,192 | 112,894 | 330,239 | 219,053 |
| Gold sold (ounces) | 55,300 | 48,340 | 107,040 | 99,790 |
| Average realized gold price ($/ ounce) | 3,295 | 2,335 | 3,085 | 2,195 |
| Tonnes of ore milled | 883,004 | 850,649 | 1,726,061 | 1,677,126 |
| Grade (grams/ tonne) | 1.84 | 1.79 | 1.90 | 1.76 |
| Recovery (%) | 98.7 | 98.6 | 98.8 | 98.5 |
| Gold production (ounces) | 51,663 | 48,143 | 104,241 | 93,559 |
| Production costs ($ in thousands) | 29,774 | 32,216 | 64,727 | 61,085 |
| Cash operating costs(1) ($/ gold ounce sold) | 538 | 666 | 605 | 612 |
| Cash operating costs(1) ($/ gold ounce produced) | 560 | 673 | 577 | 658 |
| Total cash costs(1) ($/ gold ounce sold) | 670 | 760 | 728 | 700 |
| All-in sustaining costs(1) ($/ gold ounce sold) | 825 | 1,044 | 869 | 1,000 |
| Capital expenditures ($ in thousands) | 4,709 | 11,706 | 8,316 | 25,519 |
| Exploration ($ in thousands) | 2,382 | 1,514 | 4,213 | 3,303 |
(1) Non-IFRS measure. For a description of how these measures are calculated and a reconciliation of these measures to the most directly comparable measures
specified, defined or determined under IFRS and presented in the Company’s financial statements, refer to “Non-IFRS Measures”.
The Otjikoto Mine in Namibia, in which the Company holds a 90% interest, continued to outperform during the second quarter of 2025, producing 51,663 ounces of gold, above expectations. For the second quarter of 2025, mill feed grade was 1.84 g/t gold, mill throughput was 0.88 million tonnes, and gold recovery averaged 98.7%.
Cash operating costs (refer to “Non-IFRS Measures”) for the second quarter of 2025 were $560 per gold ounce produced ($538 per ounce gold sold). Cash operating costs per ounce produced for the second quarter of 2025 were lower than expected as a result of higher than expected gold production, a weaker than expected Namibian dollar foreign exchange rate, lower mining fleet maintenance costs and lower than expected underground costs.
All-in sustaining costs (refer to “Non-IFRS Measures”) for the second quarter of 2025 were $825 per gold ounce sold. All-in sustaining costs for the second quarter of 2025 were lower than expected as a result of higher than expected gold ounces sold and lower than expected sustaining capital expenditures, partially offset by higher gold royalties resulting from a higher than expected average realized gold price. The lower sustaining capital expenditures for the second quarter of 2025 were mainly a result of timing of expenditures and are expected to be incurred later in 2025.
Capital expenditures for the second quarter of 2025 totalled $5 million, consisting mainly of $2 million for Wolfshag underground development and $1 million of mobile equipment rebuild costs.
The Otjikoto Mine in Namibia is expected to produce between 165,000 and 185,000 ounces of gold in 2025. Gold production at Otjikoto will be weighted towards the first half of 2025 due to the scheduled conclusion of open pit mining activities in the third quarter of 2025. For the full year 2025, Otjikoto is projected to process a total of 3.4 million tonnes of ore at an average grade of 1.63 g/t gold with a process gold recovery of 98.0%. Processed ore will be sourced from the Otjikoto pit and the Wolfshag underground mine, supplemented by existing ore stockpiles. Open pit mining operations are scheduled to conclude in the third quarter of 2025, while underground mining operations at Wolfshag are expected to continue into 2028. In addition to the economic potential of the Antelope deposit, exploration results received to date indicate the potential to extend underground production at Wolfshag past 2028.
The Company has updated its cash cost and all-in sustaining cost guidance ranges for the Otjikoto Mine to reflect the expected impact of lower than expected costs in 2025 and an increase in realized and expected gold prices for 2025 compared to a budgeted gold price of $2,250 per ounce. Cash operating cost guidance for the Otjikoto Mine is now forecast to be between $635 and $695 per gold ounce (original guidance range of between $695 and $755 per ounce) and all-in sustaining cost guidance for the Otjikoto Mine is now forecast to be between $965 and $1,025 per ounce (original guidance range of between $980 and $1,040 per gold ounce).
On February 4, 2025, the Company announced positive Preliminary Economic Assessment (“PEA”) results for the Antelope deposit. Based on the positive results from the PEA, B2Gold believes that the Antelope deposit has the potential to become a small-scale, low-cost, underground gold mine that can supplement the low-grade stockpile production during the period of 2028 to 2032 and result in a meaningful production profile for Otjikoto into the next decade. The PEA for Antelope indicates an initial mine life of five years and total production of 327,000 ounces averaging approximately 65,000 ounce per year over the life-of mine. In combination with the processing of existing low grade stockpiles, production from Antelope has the potential to increase Otjikoto Mine production to approximately 110,000 ounces per year from 2029 through 2032. The Company has approved an initial budget of up to $10 million for 2025 to de-risk the Antelope deposit development schedule by advancing early work planning, project permits, and long lead orders. Technical work including geotechnical, hydrogeological, and metallurgical testing is anticipated to be completed over the next several months. Cost and schedule assumptions will continue to be refined by working with suppliers and contractors, including running a competitive bid process for the development phase of the Antelope deposit. A development decision is expected in the third quarter of 2025.
The Inferred Mineral Resource estimate for the Antelope deposit that formed the basis for the PEA included 1.75 million tonnes grading 6.91 g/t gold for a total of 390,000 ounces of gold, the majority of which is hosted in the Springbok Zone. The Antelope deposit remains open along strike in both directions, highlighting strong potential for future resource expansion.
The PEA is preliminary in nature and is based on Inferred Mineral Resources that are considered too speculative geologically to have the engineering and economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the PEA based on these Mineral Resources will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
Goose Mine - Canada
The Back River Gold District consists of eleven mineral claims blocks along an 80 kilometer (“km”) belt. The most advanced project in the district, the Goose Mine, has nearly completed its construction phase with first gold production achieved in June 2025. The Back River Gold District has significant gold resource endowment and is being developed into a large, long life mining complex by B2Gold’s management team which possesses the strong northern construction expertise and the experience needed to successfully rampup the Goose Mine.
B2Gold acknowledges our partner the Kitikmeot Inuit Association (“KIA”), who has played a critical role for many years to ensure the development of a successful gold mining operation at the Goose Mine. Respect and collaboration with the KIA is central to the license to operate in the Back River Gold District and will continue to prioritize developing the district in a manner that recognizes Inuit priorities, addresses concerns and brings long-term socio-economic benefits to the Kitikmeot Region. B2Gold looks forward to continuing to build on its strong collaboration with the KIA and Kitikmeot communities.
The 2025 winter ice road campaign was successfully completed one month ahead of schedule with the successful transport of over 4,000 loads and 80 million liters of fuel from the Marine Laydown Area to the Goose Mine in mid-April 2025.
Planned construction activities for the first half of 2025 have been completed on schedule, including:
- Completion of mining in the Echo pit and the commissioning of the pit as a tailings facility;
- Mining of Umwelt open pit commenced ahead of schedule, with full ramp up achieved during the second quarter of 2025;
- Development of Umwelt underground continued, including the completion and commissioning of Fresh Air Raise 1 and preparation for the development of Fresh Air Raise 2 in the second half of 2025, to support stope ore production in the third quarter of 2025;
- Commenced dewatering of the Llama pit into the primary fresh water pond and completion of water lines to provide freshwater and reclaim water to the mill; and
- Installed and commissioned generators to support commissioning of the Goose Mine processing facilities.
On June 30, 2025, B2Gold announced the inaugural gold pour from the Goose Mine after first ore was introduced to the Goose Mine processing facilities on June 24, 2025. The focus during the third quarter of 2025 will be to optimize current operations and increase throughput to full design capacity, with a ramp up to commercial production which is expected to be achieved in September 2025.
Development of the Umwelt open pit and underground mines remains a priority to ensure that adequate mill feed volumes are maintained. Mining of the Umwelt open pit, which commenced in December 2024, is currently meeting production targets. Dewatering of the Umwelt and Llama area water ponds is underway in line with the site water management plan. Underground development at Umwelt is being completed on schedule to support the commencement of high-grade stope ore production in the third quarter of 2025.
In the first half of 2025, the Company incurred cash expenditures of $238 million (C$335 million) for the Goose Mine on construction and development activities. Expenditures in the first half of 2025 included approximately $64 million (C$86 million) of sustaining costs pulled forward from the second half of 2025 which were accelerated in order to further de-risk the Goose Mine.
Capital expenditures for the second half of 2025 at the Goose Mine are expected to total approximately $176 million. Approximately $97 million would be classified as sustaining capital expenditures and $79 million would be classified as growth capital expenditures. Sustaining capital expenditures include $42 million deferred stripping and capitalized waste costs, $20 million for mining fleet, $24 million for powerhouse upgrades and $6 million for camp additions. Growth capital costs include:
- $53 million for mill and process plant upgrades and optimization;
- $11 million for mill expansion and wind farm study costs; and
- $15 million for infrastructure upgrades.
B2Gold continues to estimate that gold production in 2025 will be between 120,000 and 150,000 ounces, and that average annual gold production for the initial full six years of operations (2026 to 2031 inclusive) will be approximately 300,000 ounces per year, based only on existing Mineral Reserves. Post-commercial production cash operating costs for the Goose Mine in 2025 are forecast to be between $1,520 and $1,580 per gold ounce produced, and post-commercial production all-in sustaining costs for the Goose Mine are forecast to be between $1,940 and $2,000 per ounce sold. Cash operating costs and all-in sustaining costs are forecast to drop significantly once the operation is ramped up to full operating capacity. As per the Company's Goose Mine Technical Report filed on March 28, 2025, cash operating costs and all-in sustaining costs are forecast to be below $1,000 per ounce and below $1,400 per ounce, respectively, when the Goose Mine achieves steady state production.
Significant exploration potential remains across the Back River Gold District. B2Gold’s corporate exploration budget is $61 million in 2025, with a total of $32 million budgeted for exploration at the Back River Gold District. B2Gold’s exploration programs have been successful in upgrading a significant portion