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 Gold Price $2,500/oz (2025 FS).
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 |
|---|---|---|---|
| Probable | 76,700 kt | 0.96 g/t Au | 2,360 koz Au |
| 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 119 projects we track
- NPV after-tax
- $941M
higher than 69% of 172 projects we track
- Initial capex
- $740M
79% of NPV
costlier than 85% of 162 projects we track
- Payback
- 3.4yrs
slower than 87% of 101 projects we track
- Mine life
- 13yrs
- Discount rate
- 5%
- Study price assumption
- Gold Price $2,500/oz (2025 FS)
- Spot gold today
- $4,188.80/oz
Among the 119 gold projects we track, this one's 22.4% after-tax IRR sits in the bottom quartile, above only 13% of the peer set. That is the number that frames everything else. Developers typically need roughly 15% after-tax to clear project finance, so the return does clear the practical hurdle, but not by a margin that leaves room for much slippage. The payback of 3.4 years is moderate, quicker than only 13% of the 101 projects we track with that metric, which tells you capital is returned at an unremarkable pace. The $941M after-tax NPV ranks above 69% of 172 peers, so the asset is large in absolute terms; the constraint is the rate at which it converts to cash, not its size.
That NPV is set against a US$7.24B market cap, roughly 0.1x, and the $740M initial capex is also about 0.1x the market cap. Read together, the build is small relative to the company's equity value, and this is one of 10 projects we track for it, so funding the construction is not the binding issue here. The gap between the headline NPV and the market's valuation cuts both ways: it can mean the asset is not reflected in the price, or that the market is discounting execution, permitting or jurisdiction. Colombia carries real permitting and social risk, and the market may be pricing that.
The study itself is feasibility-level, a build-ready estimate with a typical plus or minus 15% band, so these figures carry more weight than a scoping study's would. Two things temper the returns: the 5% discount rate is a reporting convention, not a hurdle, and the $2,500/oz assumption sits well below today's $4,188.80/oz spot, which is genuine upside if it holds. The question that decides this project is whether the moderate payback and bottom-quartile IRR can be improved enough to justify the capital ahead of the next project in the queue.
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.
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