Gramalote Project Feasibility Study: $941M NPV, 22.4% IRR
B2Gold Corp.'s Gramalote Project in Colombia has a Feasibility Study outlining an after-tax NPV of $941M, an after-tax IRR of 22.4%, and initial capital of $740M. The mine plan runs 13 years at about 177000 oz Au per year.
B2Gold Corp.'s Gramalote Project has reported Feasibility Study results for the gold project in Colombia. The study headlines an after-tax net present value of $941M at a 5% discount rate. It reflects B2Gold Corp.'s (BTG) latest disclosed economics for the asset.
Economics. The after-tax NPV is $941M using a 5% discount rate. After-tax IRR is 22.4%. Initial capital expenditure is estimated at $740M, with life-of-mine sustaining capital of $444M. The study models a payback period of 3.4 years. All-in sustaining costs are pegged at 985 USD/oz. Economics are based on $2,500/oz Au.
Production and mine plan. The project envisions an open pit operation. Life of mine is 13 years. Average annual production is approximately 177000 oz Au. Average head grade is 0.96 g/t Au (1.23 g/t Au over first 5 years). Metallurgical recovery averages 95.7%.
These figures are extracted from B2Gold Corp.'s technical disclosures and reflect the most recent Feasibility Study 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.
Our Analysis
The 22.4% after-tax IRR sits in the bottom quartile of the 90 gold projects we track, though it clears the practical financing hurdle for a single-asset junior. The 5% discount rate is a low-end reporting convention that flatters the headline NPV; this is not conservatism, but a standard presentation choice. The $941M NPV is roughly 0.2x market cap—a gap that could signal the market has not priced the asset, or that investors are skeptical about the $740M initial capex (79% of NPV) and associated dilution risk for a developer of this size.
The study’s $2,500/oz gold price sits well below the current spot of $4,193.80/oz, implying material upside to returns if prices hold. The single most important risk is financing: capex nearly matches NPV and far exceeds market cap, meaning equity dilution is likely. Payback is moderate at 3.4 years over a 13-year mine life, but the jurisdiction and permitting timeline remain the key watch-items for execution.
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.