Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
B2Gold (TSX: BTO)(NYSE: BTG) said on Monday that its consolidated gold revenue for the second quarter of the year reached a record high of $442 million, a 65% increase from the same period last year.
The mid-tier Canadian miner attributed the solid results to a 31% rise in the average realized gold price during the period, and to sales jumping by 26%.
The Vancouver-based company also saw overall production increase by 15% in the April to June period to 239,574 ounces, compared to the same quarter in 2019 and not including discontinued operations.
Output increase was driven largely by the Fekola mine in Mali, where gold production climbed by 29% to 147,424 ounces
The increase was driven largely by its Fekola mine in Mali, one of the world’s largest gold mines, where production climbed by 29% to 147,424 ounces. B2Gold attributed the output jump to the expansion of the Fekola mining fleet and the optimization of the pit designs and mine plan for 2020. The improvements have provided access to higher grade portions earlier than previously anticipated, the company said.
The company’s Otjikoto mine, in Namibia, also had a solid second quarter. It churned out 43,496 ounces of gold, which is 16% higher than what it produced in the same quarter last year.
The Masbate mine, in the Philippines, wasn’t significantly affected by a reduced workforce as a result of covid-19 restrictions, B2Gold said. The operation produced 48,654 ounces of gold, as expected.
Including attributable ounces from Calibre Mining of 2,019 ounces, B2Gold’s total gold production in the second quarter totalled 241,593 ounces.
Overall, the company continues to forecast annual production of at least 1 million ounces of gold.
