Antelope Deposit (Otjikoto) PEA: $131M NPV, 35% IRR
B2Gold Corp.'s Antelope Deposit (Otjikoto) in Namibia has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $131M, an after-tax IRR of 35%, and initial capital of $129M. The mine plan runs 5 years at about 65478 oz Au per year.
B2Gold Corp.'s Antelope Deposit (Otjikoto) has reported Preliminary Economic Assessment (PEA) results for the gold project in Namibia. The study headlines an after-tax net present value of $131M at a 5% discount rate. It reflects B2Gold Corp.'s (BTO.TO) latest disclosed economics for the asset.
Economics. The after-tax NPV is $131M using a 5% discount rate. After-tax IRR is 35%. Initial capital expenditure is estimated at $129M. The study models a payback period of 1.3 years. All-in sustaining costs are pegged at 1095 USD/oz. Economics are based on Gold Price $2,400/oz.
Production and mine plan. The project envisions an underground operation. Life of mine is 5 years. Average annual production is approximately 65478 oz Au. Average head grade is 5.75 g/t Au. Metallurgical recovery averages 95%.
These figures are extracted from B2Gold Corp.'s technical disclosures and reflect the most recent PEA on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Indicated | 400 kt | 5.53 g/t Au | 70 koz Au |
| Inferred | 3,440 kt | 5.23 g/t Au | 580 koz Au |
Our Analysis
- IRR after-tax
- 35%
higher than 43% of 105 projects we track
- NPV after-tax
- $131M
higher than 19% of 141 projects we track
- Initial capex
- $129M
98% of NPV
costlier than 44% of 134 projects we track
- Payback
- 1.3yrs
slower than 26% of 82 projects we track
- Mine life
- 5yrs
- Discount rate
- 5%
- Study price assumption
- Gold Price $2,400/oz
- Spot gold today
- $4,478.90/oz
The build cost here is the story, and it is a good one. At $129M against a US$6.79B market cap for a diversified, nine-project portfolio, this is a development that can be funded from the balance sheet without breaking a sweat. That is the sharpest signal in the file: funding risk is minimal, which is rare for a gold developer and removes the most common cause of value destruction at this stage. The capex sits at 98% of NPV, which is moderately capital-intensive, but that ratio is a secondary concern when the absolute number is so small relative to the company's size.
On the peer table, the project is a middling performer, not a standout. The 35% after-tax IRR ranks in the lower half of the 105 gold projects we track, though it clears the roughly 15% hurdle developers need to attract project finance by a wide margin. The after-tax NPV of $131M ranks in the bottom fifth of the 141 projects we track, which is a function of the modest 5-year mine life more than anything else. The payback of 1.3 years is genuinely fast, better than 74% of the 82 projects we track, and that is the counterweight to the low NPV rank: capital is returned quickly, then the asset is done.
The two caveats are the study stage and the price deck. This is a PEA, scoping-level, with a capital estimate that carries a plus or minus 50% band, so the $129M figure is a point estimate, not a commitment. And the study uses $2,400/oz gold against a current spot of $4,478.90/oz, which means the returns are calculated on a conservative price; the upside to today's market is substantial, though that gap also signals the market may be skeptical of the project's scale or the jurisdiction. Namibia is a stable mining jurisdiction, which helps. The question that decides whether this works is simple: can a 5-year, $131M NPV project justify the management attention of a company this size, or is it a rounding error that never gets built?
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.