B2GOLD said it would be debt-free later this month once it had repaid its $425m revolving credit facility (RCF).
Commenting in an update, in which it also announced the commissioning of its Fekola mill expansion in Mali, the group said it had repaid $375m of the RCF and “… expects to pay the final remaining tranche of $50m and be debt-free by late September 2020”.
Assuming a gold price of $1,900/oz for the second half of its financial year, B2Gold forecast an operating cash flow of more than $900m for the full year. This is largely owing to a rising gold price during the period, up about 36% year-to-date.
Production guidance for this year has been maintained at between one million to 1.06 million ounces. This is despite social and political unrest in Mali where Fekola is located. The West African country ousted its president last month.
The Fekola mill has a new capacity of 7.5 million tons in ore a year following its expansion, completed a month ahead of schedule, the company said.
It added that the Fekola Mine “… continues to operate unimpeded and no operational days have been lost due to the recent political developments in Mali or the COVID-19 pandemic”.
Fekola comprised just over 61% of total second quarter gold production which came in at 506,455 oz and 490,206 oz excluding its equity interest in a mine it sold to investment company Calibre last year.
