B2Gold says higher-grade underground ore enabled its Otjikoto Mine in Namibia to outperform expectations during the second quarter despite a sharp year-on-year decline in gold production, highlighting the mine’s successful transition from open-pit to underground mining.
The Canadian gold producer reported that Otjikoto produced 23,438 ounces of gold during the second quarter ended 30 June 2026, compared with 51,663 ounces during the corresponding period last year. Gold sold also declined to 21,952 ounces from 55,300 ounces, while ore milled decreased to 859,828 tonnes from 883,004 tonnes.
Although production was lower than a year ago, B2Gold said the mine exceeded its internal expectations because underground mining delivered greater ore volumes and higher mill feed grades than anticipated.
“Higher than anticipated production in the second quarter of 2026 was primarily due to higher than expected average mill feed grade as a result of greater ore volumes than expected from higher grade underground sources,” the company said.
The results underscore the changing nature of Otjikoto as mining progressively shifts underground. While the average processed grade declined from 1.84 grams per tonne to 0.87 grams per tonne compared with the corresponding quarter last year, the underground operation performed better than B2Gold had planned, enabling the mine to exceed its production forecast for the quarter.
The stronger underground performance has prompted B2Gold to raise Otjikoto’s full-year production guidance to 80,000-100,000 ounces, from the previous 70,000-90,000 ounces, reflecting management’s confidence that the operation will maintain its momentum through the remainder of the year.
Despite the higher costs associated with underground mining, B2Gold said cash operating costs came in below its internal expectations because stronger production partially offset increased underground mining costs. Cash operating costs were US$1,190 per ounce produced, compared with US$560 per ounce in the second quarter of 2025, while all-in sustaining costs were US$1,480 per ounce sold.
The company also continued investing in Otjikoto’s underground future, with capital expenditure totalling approximately US$8 million during the quarter, primarily comprising US$5 million for Antelope development and US$2 million for underground development.
Otjikoto’s performance also strengthened its standing within B2Gold’s global portfolio. The Namibian mine was one of three operations, alongside Fekola in Mali and Masbate in the Philippines, that exceeded the company’s production expectations during the quarter, helping offset weaker production at Goose Mine in Canada following a crusher fire. It was also one of only two operations, together with Masbate, to receive an increase in full-year production guidance, driven by stronger operating performance.
Looking ahead, B2Gold said it expects the mine’s strong first-half performance to continue.
“Similarly, at Otjikoto strong gold production results from the first half of 2026 are expected to continue throughout the remainder of the year. As a result, the company is increasing the Otjikoto gold production guidance for 2026 and anticipates that all-in sustaining costs will be at or below the low-end of guidance,” the company said.
The results suggest that while Otjikoto is producing fewer ounces than during its mature open-pit years, its underground operation is performing better than B2Gold had anticipated. That has been sufficient not only to lift the mine’s annual production outlook, but also to position Otjikoto among the company’s best-performing operations in the first half of 2026.
