Otjikoto holds 2026 gold target
B2Gold's Otjikoto gold mine in Namibia remains on track to meet its 2026 production target despite a sharp decline in output during the first nine months of the year.
The Canadian gold producer said the mine had performed better than expected and was likely to maintain its stronger performance through the final quarter, allowing it to retain its annual production guidance of between 80 000 and 100 000 ounces.
In its third-quarter results released on 4 November, B2Gold reported that Otjikoto produced 69 833 ounces of gold in the nine months to 30 September, compared with 148 346 ounces during the corresponding period last year.
This represents a decline of 78 513 ounces, or approximately 53%.
The mine produced 21 866 ounces during the third quarter, down from 44 105 ounces in the same period last year.
To reach the lower end of its annual target, Otjikoto needs to produce another 10,167 ounces during the final quarter. A further 30,167 ounces would take it to the upper end of the guidance range.
Despite the lower production volumes, B2Gold said the mine's performance had exceeded expectations, prompting a downward revision of its full-year all-in sustaining cost (AISC) forecast.
The company now expects Otjikoto's AISC to range between US$1 630 and US$1 780 per ounce sold in 2026.
However, costs have risen significantly compared with last year. Otjikoto recorded AISC of US$1 526 per ounce sold during the first nine months, up from US$930 in the corresponding period of 2025.
Third-quarter AISC increased to US$1 875 per ounce sold, compared with US$1 089 a year earlier.
Cash operating costs also climbed to US$1 312 per ounce sold during the quarter, from US$782 in the same period last year.
Otjikoto generated US$92 million in gold revenue during the third quarter, down from US$143 million a year earlier.
Revenue for the first nine months declined to US$344 million, compared with US$473 million in 2025, reflecting the substantial reduction in gold sales.
The mine sold approximately 76 000 ounces during the nine-month period, compared with 148 000 ounces in the corresponding period last year.
Higher gold prices helped cushion the impact of lower sales volumes. Across B2Gold's operations, the average realised gold price increased to US$4 289 per ounce in the third quarter, from US$3 133 a year earlier.
At group level, B2Gold's mines produced 193 321 ounces during the third quarter, compared with 254 369 ounces in the same period last year.
Production for the first nine months reached 634 732 ounces, down from 676 575 ounces in 2025.
Despite the decline, the company maintained its consolidated annual production guidance of between 820 000 and 920 000 ounces.
B2Gold also lowered its group AISC forecast to between US$2,230 and US$2,410 per ounce sold, from its previous range of US$2 370 to US$2 550.
The company's president and chief executive, Mike Cinnamond, said stronger production at Otjikoto and the Masbate mine in the Philippines had contributed to the improved cost outlook.
Both operations are expected to maintain their stronger-than-anticipated performance through the final quarter of 2026.
