Dallas, Texas 07/07/2015 (Financialstrend) – B2Gold Corp (NYSEMKT:BTG) is projecting another record year of gold production in 2015 after announcing robust results from a feasibility study on an upcoming project in Mali. The company expects wide production at its newly constructed Ojikoto Mine, Masbate and Limon Mines that should see its gold production range between 500,000 and 540,000 ounces.
An increase in the total gold production and a reduction in consolidated operating costs per ounce is an indication of the positive impact of the low-cost Ojikoto Mine in Namibia. Commencement of production in the mine, as well as the upcoming Fekola project in Mali, reflects B2Gold Corp (NYSEMKT:BTG) strong growth profile made of low-cost production base.
Based on the ongoing production activities in various mines B2Gold Corp (NYSEMKT:BTG) expects its gold production to grow to over 900,000 ounces by 2018 from 380,000 produced in 2014. The company has already closed a $350 million Revolving Credit Facility that comes with an additional binding commitment feature that could see the facility increased to $450 million.
Strong Financial Base
The credit facility coupled with strong operating cash flows from ongoing mining operations should provide B2Gold Corp (NYSEMKT:BTG) with the much needed funds for realizing the Fekola Project. The $350 million credit facility also meets the company’s objective of always having cash flows of above $100 million when commencing big projects like the Fekola project.
The Fekola project in Mali is to be developed as an open mine in seven stages with an expected mile tonnage of 32 million tons per year. B2Gold Corp (NYSEMKT:BTG) plans to develop a processing plant able to produce 4 million tons per annum with a 25% design factor. The company is targeting 350,000 ounces per year from the project at an average operating cost of $418 per ounce.
B2Gold Corp (NYSEMKT:BTG) expects to yield a positive pretax of $1.01 billion at a discount rate of 5% based on a reserve gold price of $1, 300 per ounce.