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 (BTO.TO) 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 gold (base case).
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 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.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Indicated | 155,620 kt | 0.70 g/t Au | 3,520 koz Au |
| Inferred | 120,940 kt | 0.52 g/t Au | 2,000 koz Au |
Our Analysis
- IRR after-tax
- 22.4%
higher than 13% of 113 projects we track
- NPV after-tax
- $941M
higher than 75% of 150 projects we track
- Initial capex
- $740M
79% of NPV
costlier than 86% of 147 projects we track
- Payback
- 3.4yrs
slower than 86% of 93 projects we track
- Mine life
- 13yrs
- Discount rate
- 5%
- Study price assumption
- $2,500/oz gold (base case)
- Spot gold today
- $4,408.90/oz
Against the 113 gold projects we track, this one sits in the bottom quartile on returns: a 22.4% after-tax IRR, higher than only 13% of that peer set. That rank is the entry point, not a footnote. It clears the roughly 15% after-tax threshold developers typically need to attract project finance, but not by enough to make this a standout on economics alone. The after-tax NPV of $941M ranks higher than 75% of the 150 gold projects we track, so the value is real; the question is how long it takes to reach an investor. Payback of 3.4 years ranks lower than 14% of the 93 projects we track, meaning capital returns more slowly than for most peers. A mid-teens IRR paired with a below-median payback is a specific profile: adequate, not exceptional.
The feasibility study carries the most weight of any estimate stage, typically a plus or minus 15% band, and this is a build-ready number rather than a scoping guess. It is also unchanged from the 2025 filing on every headline measure: NPV, initial capex, mine life and IRR all flat. That is worth noting. A study that has not moved is either confirmation or a sign the assumptions are being held steady rather than re-tested. The 5% discount rate is a reporting convention, not an investment hurdle, and should not be read as a signal either way.
Funding risk is where this project actually gets comfortable. Initial capex of $740M is about 0.1x the company's US$7.19B market cap, and the NPV-to-market-cap ratio is similar. A build of that size against a mid-cap with 10 projects in the portfolio is financeable without the dilution that typically punishes single-asset developers. Capex at 79% of NPV is moderately capital-intensive, ranking lower than 14% of the 147 projects we track. Colombia is the open question: a jurisdiction that adds permitting and execution risk to a 13-year mine life.
The study assumes $2,500/oz gold against a live spot of $4,408.90/oz. That gap is the entire investment case, and it cuts both ways: either the market is discounting a genuinely higher gold price, or it is pricing jurisdiction and execution risk the study does not. The deciding question is whether the 22.4% IRR holds if gold does not.
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.