B2Gold increases Gramalote Project’s value in Colombia with new feasibility study

B2Gold boosts Gramalote project's feasibility in Colombia, raising NPV to $941 million and cutting initial capital by 8%. Annual gold production to exceed 227,000 ounces.

B2Gold (TSX: BTO; NYSE: BTG) has released a new feasibility study for its Gramalote open-pit gold project in central Colombia, showing a 21% increase in net present value (NPV) and an 8% reduction in capital costs compared to last year’s preliminary economic assessment (PEA). The news sent company shares higher on Monday.

The study estimates an NPV of $941 million at a 5% discount rate, based on a gold price of $2,500 per ounce, and an internal rate of return (IRR) of 22%. Initial construction capital is estimated at $740 million, with a payback period of 3.4 years. Additionally, the mine life has been extended from 10 to 13 years.

Gramalote is located approximately 230 km northwest of Bogotá, Colombia’s capital, and represents a strategic asset for B2Gold in the Americas.

Results Beat Market Expectations

“The feasibility study results are slightly positive in our view, with operating parameters largely in line with our model but featuring a significantly lower initial capital expenditure,” said Carey MacRury, analyst at Canaccord Genuity.

MacRury noted the updated study exceeded his prior estimates of an $862 million NPV and 18% IRR. He assigns the project a net asset value (NAV) of $1.18 billion, using an NPV at an 8% discount rate and a long-term gold price of $3,447 per ounce. This represents roughly 12% of his total NAV estimate for B2Gold.

The feasibility study was released just two weeks after B2Gold achieved first gold pour at its Goose Mine in Nunavut, marking a new chapter in its North American operations. The company also operates the Fekola mine in Mali, Masbate in the Philippines, and Otjikoto in Namibia.

Strong Production Outlook and Competitive Costs

According to B2Gold, Gramalote is expected to produce a total of 2.3 million ounces of gold over its life of mine, with average annual production of 227,000 ounces in the first five years. The average gold grade during this period is projected at 1.23 grams per tonne.

The mill will process approximately 6 million tonnes of ore per year, with operations extending over 13 years. The all-in sustaining costs (AISC) are estimated at $985 per ounce, positioning Gramalote as a cost-effective gold operation.

Permitting and Resource Update

While Gramalote already holds permits for a larger-scale operation, B2Gold indicated that these must be modified to align with the revised 6-million-tonne-per-year plan outlined in the new study. The company expects the permit modifications to be completed within 12 to 18 months.

The updated mineral reserves now include 76.7 million tonnes of probable reserves grading 0.96 grams of gold per tonne, totaling 2.36 million ounces of gold. The indicated resource stands at 192.2 million tonnes grading 0.68 g/t for 4.21 million ounces, while inferred resources include 85.4 million tonnes at 0.54 g/t, totaling 1.48 million ounces.

The feasibility study incorporates data from over 270,000 metres of drilling, reflecting the project's extensive exploration work and robust geological foundation.

Market Reaction and Analyst Outlook

Following the release, B2Gold’s stock gained 1%, trading at C$4.83 on the TSX by mid-day Monday. The company’s market capitalization now stands at C$6.38 billion, with a 12-month trading range between C$3.16 and C$5.20.

MacRury maintained a buy rating on B2Gold, with a target price of C$8.25, emphasizing the project's potential to drive long-term shareholder value.

As B2Gold strengthens its portfolio across multiple continents, Gramalote emerges as a cornerstone in its expansion strategy in Latin America—offering high-margin production, scalable infrastructure, and proximity to key markets.