B2Gold’s new Nunavut mine’s capex surges to C$1.5bn
Canadian miner B2Gold has revised the capital expenditure estimate for the Goose project, in Nunavut, by 23% to C$1.54-billion.
The increase is primarily owing to a three-month delay in the expected start of gold production, now pushed to the second quarter of 2025. Further, the acceleration of certain capital expenses, which were initially scheduled for after the start of production, has contributed to the revised estimate.
To date, B2Gold has invested C$1-billion in the construction and development of the mine, representing 66% of the total estimated cost before gold production begins. The company anticipates an additional C$530-million in expenses from July 1, 2024, until the start of production.
Despite the increased costs, B2Gold stressed that it remained in a robust financial position. As of June 30, 2024, the company reported a working capital balance of C$600-million and has access to an undrawn C$700-million revolving credit facility.
The company also expects to generate operating cash flow from its existing operations.
The delay, which was previously announced, is linked to an additional three months of mining added to the schedule. This adjustment ensures alignment of the Umwelt openpit, underground development, and crown pillar activities, and provides significant tailings storage capacity in the Echo openpit. Consequently, the mill is now expected to begin wet commissioning in the second quarter of 2025, with full production ramp-up anticipated in the third quarter.
The updated schedule does not affect the production expectations at Goose. B2Gold continues to project gold production in 2025 to range between 120 000 oz and 150 000 oz. Furthermore, the revised production profile estimates an average yearly gold production of about 310 000 oz/y from 2026 to 2030.
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